Agricultural products (Tariff Rate 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 in order to administer tariff rate quotas (TRQs) by the simultaneous examination method or licence on demand for certain agricultural products arising from obligations at the WTO or resulting from arrangements with the government of a country or territory of a country outside the UK.
The regulations listed at paragraph 2.5 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 these Regulations, they will issue the relevant import licence within stated deadlines.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Under the Customs (Tariff Quotas) (EU Exit) Regulations 2020, any good imported under TRQs which are listed in the Licensing Table in Schedule 2 of these regulations are subject to an import licence according to the conditions set out in these regulations.
(i) Beef and Veal under the commodity codes 0201 10, 0201 20, 0201 30, 0202 10, 0202 20, 0202 30, 0206 10 and 0206 29;
(ii) Pig meat under the commodity codes 0203 12, 0203 19, 0203 22 and 0203 29;
(iii) Poultry meat under the commodity codes 0207 11, 0207 12, 0207 13, 0207 14, 0207 27, 0210 99, 1602 31, 1602 32 and 1602 39;
(iv) Garlic under the commodity code 0703 20;
(v) Milk and dairy products under the commodity codes 0405 10 and 0406 90;
(vi) Cereals and Rice products under the commodity codes 1001 99, 1005 10, 1005 90, 1006 20, 1006 30 and 1006 40;
(vii) Sugar (cane or beet) under the commodity code 1701.
Q3. The system applies to goods originating in and coming from which countries?
This licences system applies to the countries for whom the tariff rate quotas are opened. Details on all the tariff rate quotas that the UK operate can be found at the following links:
Reference Documents for The Customs (Tariff Quotas) (EU Exit) Regulations 2020 - GOV.UK (www.gov.uk)
Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020 - GOV.UK (www.gov.uk)
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?
Non-automatic licensing is intended to allocate the restricted quantity of imports which can benefit from reduced duties under TRQs in a clear and transparent manner.
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 basis for these import licences are the following statutory instruments made under the Taxation (Cross-border Trade) Act 2018:
- The Customs (Tariff Quotas) (EU Exit) Regulations 2020; and
- The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulation 2020.
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):
The UK does not apply restrictions on the imports of agricultural products. However, imports of agricultural products at a lower duty rate than the UK bound rate are possible under TRQs. Imports under TRQs may be subject to an import licence:
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?
The Customs (Tariff Quota) (EU Exit) Regulations 2020 sets out the two management methods for TRQs:
(a) First-come first-served; and
(b) Licence system - Simultaneous examination method and licence on demand.
The first-come first-served method does not involve the issuing of licenses.
This relevant guidance is available on https://www.gov.uk/guidance/the-trader-s-guide-to-importing-and-exporting-certain-agricultural-goods.
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?
The tariff quotas are opened on a yearly basis and their administration may differ. There are cases where the total quantity of the quota is divided in biannual, quarterly or monthly subperiods. Licence applications take place on a monthly basis, in the first seven days of each month.
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.)
Licences are allotted to any applicant meeting the eligibility criteria irrespective of their place of establishment in the UK or the Crown Dependencies. To ensure that allocated licences are actually used, a system of securities applies. If imports are not, or partially not realised, the licence holder's security is forfeited or partially forfeited.
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?
The minimum amount of time an operator has to apply for an import licence for a certain quota following the publication of the opening of the quota in the first seven days of each month throughout the quota year.
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Licences are issued at latest by the end of the month in which the application was received, except that licences that are valid from 1 January must be issued by 16 December of the preceding year.
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
The time between issuing an import licence and the quota opening is usually one week.
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?
Licence administration is managed by the Rural Payments Agency (RPA).
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?
The majority of TRQs managed by an import licence are subject to the simultaneous examination procedure. If the demand for licences cannot be fully satisfied, the RPA calculates to what extend the total quantity can be allocated and fixes a uniform allocation coefficient valid for each import licence. Some other quotas managed by an import licence such as some beef and dairy quotas are subject to licence on demand after presentation of a third country certificate.
For certain over-subscribed quotas, quantities will be allocated on the basis of previous imports of those products (reference quantity).
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?
When export licences are issued by third countries, importers will either need to submit this licence or a copy with their application for a licence or present directly to Customs authorities.
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?
There are no cases where imports under quota are allowed on the basis of export permits only.
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
There are no 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)?
Q7.b. Can a licence be granted immediately on request?
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.
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?
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?
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 be eligible to apply for a licence, an importer must be:
(a) registered under the Value Added Tax Act 1994;
(b) established in the United Kingdom, which for an individual means a resident of the UK, or in any other case means where a person has a registered office in the UK or a permanent place in the United Kingdom from which the person carries out activities which the person is constituted to perform;
(c) registered with HM Revenue and Customs for an Economic Operator's Registration and Identification number;
(d) where goods that are subject to a quota by virtue of UK Regulations are subject to a quota under equivalent legislation in the Crown Dependencies, licences are administered by the RPA for operators established in the Crown Dependencies.
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 TRQ can be found online at Licences for the import/export of agricultural products - GOV.UK (www.gov.uk)
Applications for imports under certain TRQs for milk and milk products will need to be accompanied by an Inward Monitoring Arrangement (IMA) certificate or a copy of this certificate. This certificate should be issued by the recognised authority for the exporting company. TRQs with this requirement and the details of recognised authorities are set out in Part B, Schedule 1 of the Customs (Tariff Quota) (EU Exit) Regulations 2020.
Applications for imports under certain TRQs for beef and veal products will need to be accompanied by a Certificate of Authenticity or a copy of this certificate. This certificate should be issued by the recognised authority for the exporting company. TRQs with this requirement and the details of recognised authorities are set out in Part B, Schedule 1 of the Customs (Tariff Quota) (EU Exit) Regulations 2020.
Q11. What documents are required upon actual importation?
When the import declaration is made, a copy of the relevant TRQ import licence, in an electronic form or otherwise, must be presented to customs. For certain high-quality beef quotas, the goods must also be accompanied by a Certificate of Authenticity issued by the authorised government body in the exporting territory. The quotas and issuing bodies are listed in Part B, Schedule 1 of the Customs (Tariff Quota) (EU Exit) Regulations 2020.
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 TRQ 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.
There are no fees for applying for a TRQ import licence, however, a security must be lodged with the RPA. The amount of the security depends on the products and is set out in Schedule 2 of the Customs (Tariff Quota) (EU Exit) Regulations 2020. The security is returned once the conditions of the licence have been met and the goods have been imported.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
A TRQ import licence is valid from the first day of the opening of the quota period or sub-period for which the application was made, if the licence application was received prior to the commencement of the quota period or sub-period or from the first day of the month following receipt of the licence application, if the application is received within the quota period or sub-period for which the application was made. A TRQ import licence is valid until the end of the quota period in respect of which it was issued.
**Milk and milk products
Where an IMA has been submitted with an application for an import licence, the licence issued will be valid from the date of its issue until the final day of the month, which is the eighth month following its issue so long as that period does not extend beyond 31st December in the year in which it was issued.
**Beef and veal
Where a Certificate of Authenticity has been submitted with an application for an import licence, the licence issued will be valid for the relevant quota period or a period of three months beginning with the day on which the licence was issued, whichever period ends first.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for the non-utilisation of a TRQ import licence. However, if an import licence is not used the security lodged with the application is forfeited. If an import licence is only partially used, a proportional amount of the security is 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. The transferee should meet the same eligibility criteria as the transferor.
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 an import authorisation for products subject to or not subject to quantitative restrictions.
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.