Exemption for outstandingly valuable and important pre-1918 items Section 4: Further provision about exemption certificates
This section sets out additional provisions on the certification process. Subsection (1) ensures that an exemption certificate, if issued, will be specific to the item subject to the application. To facilitate buyers and sellers to act in compliance with the ivory ban the certificates will include a date of issue, an identification code and other information, such as photographs, to identify the exempt item. This allows for a potential purchaser to assure themselves that the exemption certificate relates to the item in question.
	Should the purchaser of an item exempted under section 2 wish to deal in it in future, they are not required to apply for a new exemption certificate: an item need only be certified as exempt once under this section. It is intended that the owner will pass on the exemption certificate to the purchaser (e.g. at the point of sale or when taking delivery of the item). Subsequent owners of certified items, however, are required to comply with subsection (7), including any regulations made under subsection (7)(b), should they wish to carry out dealing in the item. Thus, the exemption certificate ‘accompanies’ (i.e. remains valid in respect of) an item when a transaction is made. This differs from other exemptions outlined in sections 6 to 9 of the Act. Subsection (7)(b) allows the Secretary of State to make regulations requiring the seller of an item for which an exemption certificate has been issued to a previous owner to provide further information and/or to require a further fee to be paid prior to dealing in the item by the new owner.
	Subsection (2) confers a responsibility on the owner of the item certified as exempt under section 4, to notify the Secretary of State if any of the information associated with the item or the application for its exemption changes or becomes out of date or if the owner becomes aware that any of the information within the application is incorrect or incomplete. This could be, for instance, if the item is damaged in such a way as is likely to affect its ability to meet the exemption criteria, or should it emerge that any of the information initially provided, such as historical provenance, is proven to be incorrect. Subsection (3) explains that the Secretary of State can revoke an exemption certificate if the Secretary of State believes that:
the exemption conditions outlined in section 2(2) are not met or are no longer met; or
any other information associated with the item or the application for its exemption is inaccurate, changes or becomes out of date and the owner does not notify the Secretary of State, as set out in Section 4(2).
	Subsection (4) allows the Secretary of State to issue a new exemption certificate with revised information. Such an action would be taken in order to address any issues of inaccurate or incomplete information which may arise over time, where this new information, or altered state or condition of the item does not affect the item’s assessment against the exemption criteria. For instance, if the item incurs damage, but it is the assessment of the Secretary of State that this damage does not affect the rarity, importance or historic, artistic or cultural significance of the item.
	Subsection (5) ensures that the Secretary of State can issue a replacement exemption certificate if one of the following applies: the original certificate has been lost; the owner was unable to obtain the certificate from the previous owner; or the Secretary of State believes there is an appropriate reason to replace the certificate. While it is the responsibility of the seller to pass on the exemption certificate if the ownership of the item changes, subsection (5) addresses such circumstances where this is not possible, for example, this may occur if an exempt item is inherited and the certificate is not available to the beneficiary. Subsection (6) ensures that the application process set out in section 3 would not apply if subsection (5) applies and a replacement certificate is being sought.
	Subsection (7) provides for the situation in which an exempt item transfers ownership from one person to another person (P) and the subsequent owner, P, wishes to carry out dealing in that item. In this situation P must satisfy both of the following conditions prior to carrying out dealing:
P must be in possession of the exemption certificate for the item. It is the intention of the Act that the seller of the item transfers the exemption certificate to the new owner at the point of sale. Equally, the purchaser should request the transfer of the certificate if it is not forthcoming. P may, under subsection (5), apply for a replacement exemption certificate if, for any reason listed under subsection (5), they need to do so. The replacement certificate must be provided prior to commercial dealing being carried out.
P must also provide any information and pay fee as may be set out in regulations.