Approach to the European Union (Future Relationship) Act 2020 Trade and Other Matters Customs and Tax Disclosure of information and co-operation with other customs services
Her Majesty’s Revenue and Customs (HMRC) exercises a range of statutory customs functions in respect of both the collection and management of customs duty and the control and administration of imports/exports more generally. To support these functions, HMRC needs to be able to disclose information lawfully to and cooperate with a range of entities, including law enforcement agencies and other customs services for purposes including trade facilitation, ensuring the security of UK borders and combating fraud.
	The Customs and Trade Facilitation chapter in the TCA contains provisions on customs cooperation and a Protocol on Mutual Administrative Assistance which together provide a basis in international law for cooperation between customs authorities, reciprocal assistance and the exchange of information between the UK and the EU to uphold their respective customs regimes. The TCA provisions also impose various Treaty-level conditions on the use of any such information received by either Party, including purpose limitations on the use of information and consent for any onwards disclosure.
	HMRC’s statutory framework on confidentiality requires a legal basis to be able to lawfully disclose HMRC information held in connection with departmental functions. The sections replace existing provisions contained within sections 25 and 26 of the Taxation (Cross-border Trade) Act 2018, which currently provide such a legal basis for disclosure and cooperation for purposes related to UK Import Duty. This section will create equivalent powers for all matters related to HMRC’s customs functions.
	These Sections will provide a suitable legal basis for disclosure and cooperation on the full range of customs matters, including where there is no clear link to UK Import Duty. This covers a number of important areas, including customs safety and security, mutual assistance, and information in respect of Authorised Economic Operators. This will entail a repeal of the relevant sections of the Taxation (Cross-border Trade) Act 2018 and insertion of these new sections into the Customs and Excise Management Act 1979 (‘CEMA’). This approach will maintain current restrictions on use and further disclosure of any information under the section s, by reference to existing penalties under the Commissioners for Revenue and Customs Act 2005.