Agricultural products (Non-quota)
- Document symbol
- G/LIC/N/3/GBR/3
- Original language
- English
- Published on
- 07/12/2023
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
The United Kingdom (UK) operates a system of import licences to monitor trade flows for certain agricultural products. This system does not limit access to the UK market.
The regulations implementing this system set out which products are subject to import licence requirements and the process by which operators can apply for and utilise import licences.
Import licences are issued by the Rural Payments Agency and are valid for a certain period, which varies depending upon the different products.
Once the Rural Payments Agency have received an application, which meets the criteria set out in the regulations, they will issue the relevant import licence within five working days.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
The following goods are subject to an import licence in the United Kingdom:
i. Hemp seeds for sowing, raw hemp, hemp seeds not for sowing under the commodity codes 1207 99 20, 1207 99 91 and 5302 10 00.
The following goods are subject to an import licence in Northern Ireland only:
i. Husked, milled or broken rice products under the commodity codes 1006 20, 1006 30 and 1006 40 00.
ii. Ethyl Alcohol of agricultural origin under the commodity codes 2207 10 00, 2207 20 00, 2208 90 91 and 2208 90 99.
Q3. The system applies to goods originating in and coming from which countries?
The licence system for the United Kingdom applies to all countries without exception. Licences required only in Northern Ireland are not required for imports from the European Union.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
The automatic licensing is not intended to restrict the quantity or value of imports. The purpose is to monitor trade flows for certain agricultural products without limiting access to the UK market.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
The legal bases for these import licences respectively are:
- The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019, laid under the European Union (Withdrawal) Act 2018 which amends retained EU law: Commission Delegated Regulation (EU) No. 2016/1237 of 18 May 2016 and Commission Implementing Regulation (EU) No. 2016/1239 of 18 May 2016.
- The Import and Export Licensing (Miscellaneous Amendments) Regulations 2021.
- Chapter I of Part III of Regulation (EU) No. 1308/2013 applies in respect of Northern Ireland by virtue of the application of section 7A of the European Union (Withdrawal) Act 2018 and Annex 2 of the Northern Ireland Protocol.
The products which are subject to this import licensing regime are designated in the above legislation. Revocation of this regime would require new or amended legislation to be brought before Parliament.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
A licence is issued within five working days of receiving a valid application. The day an application for a licence is lodged shall be deemed to be the working day on which it is received by the licence issuing authority, provided that it has been received not later than midday. A licence is valid from the day of issue.
Q7.b. Can a licence be granted immediately on request?
A licence is granted without delay after a valid application has been lodged, within five working days.
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
There are no limitations as to the period of the year during which application for licence may be made.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
The Rural Payments Agency administers all licence applications.
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
Import licences for hemp or hemp seeds are only issued where the conditions laid down in Article 189(1) of retained EU Regulation No. 1308/2013 have been met. Otherwise, the legislation does not give grounds for refusal of an application for a licence other than failure to meet the ordinary eligibility criteria. Reasons for refusal are given to the applicant. No appeal procedures are specified in the legislation.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
To apply for a licence, an importer must have an Economic Operator's Registration and Identification number and be registered with the Rural Payments Agency. There is no registration fee to become an importer. There is no published list of authorised importers.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
There are no requirements regarding the format of an application, but guidance on how to apply for a licence can be found online at Licences for the import/export of agricultural products - GOV.UK (www.gov.uk).
Q11. What documents are required upon actual importation?
When the import declaration is made, a copy of the relevant import licence, in an electronic form or otherwise, must be presented to customs.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
There are no fees for applying for a non-quota import licence.
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
Please see the answer to 14 below.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
Applications for a non-quota import licence for rice or ethyl alcohol require a security to be lodged. This security is returned when the obligation to import is considered to have been fulfilled. The relevant securities and the period of validity are set out below.
| Commodity code | Description | Amount of security | Period of Validity |
|---|---|---|---|
| 1006 20 | Husked (brown) rice, including products imported under tariff rate quotas managed by FCFS | £26/t | until the end of the 2nd month following the month of the day of issue of the licence |
| 1006 30 | Semi-milled or wholly milled rice, whether or not polished or glazed, including products imported under tariff rate quotas managed by FCFS | £26/t | until the end of the 2nd month following the month of the day of issue of the licence |
| 1006 40 00 | Broken rice, including products imported under tariff rate quotas managed by FCFS | £1/t | until the end of the 2nd month following the month of the day of issue of the licence |
| ex 2207 10 00 | Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or higher | £1 per hectolitre | until the end of the 4th month following the month of the day of issue of the licence |
| ex 2207 20 00 | Ethyl alcohol and other spirits, denatured, of any strength | £1 per hectolitre | until the end of the 4th month following the month of the day of issue of the licence |
| ex 2208 90 91 | Undenatured ethyl alcohol of alcoholic strength by volume of less than 80% vol | £1 per hectolitre | until the end of the 4th month following the month of the day of issue of the licence |
| ex 2208 90 99 | Undenatured ethyl alcohol of alcoholic strength by volume of less than 80 % vol. | £1 per hectolitre | until the end of the 4th month following the month of the day of issue of the licence |
| ex 1207 99 20 | Seeds of varieties of hemp, for sowing | No security required | until the end of the 6th month following the month of the day of issue of the licence |
| 1207 99 91 | Hemp seeds other than for sowing | No security required | until the end of the 6th month following the month of the day of issue of the licence |
| 5302 10 00 | True hemp, raw or retted | No security required | until the end of the 6th month following the month of the day of issue of the licence |
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
If the licence is not used within the period of validity, then any security which has been lodged will be forfeited.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Import authorisations are transferable between importers. Import licences constitute a right and give rise to an obligation to import under the licence during its period of validity. As a general rule, rights deriving from licences are transferable by the titular holder of the licence during the period of its validity, but obligations deriving from licences are not transferable. The original licence holder should apply to the Rural Payments Agency to transfer the licence. Transferees must have an EORI number and be registered with the Rural Payments Agency.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
No other conditions are attached to the issuance of a non-quota import licence.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
No other administrative procedures, apart from import licensing and similar administrative procedures are required prior to importation.
Q19. Is foreign exchange automatically provided by the banking authorities for goods to be imported? Is a licence required as a condition to obtaining foreign exchange? Is foreign exchange always available to cover licences issued? What formalities must be fulfilled for obtaining the foreign exchange?
The banking authorities automatically provide foreign exchange for goods to be imported as well as to cover import licences. A licence is not required as a condition to obtaining foreign exchange.