Commentary on provisions of Act Section 21: Powers to make regulations about movement of goods
This section further amends the Customs and Excise Management Act 1979 ("CEMA") by inserting three new sections into the Act relating to maintaining security and safety standards of goods.
	Subsections (1) and (2) of this section amend CEMA by inserting new sections 166A, 166B and 166C.
	New section 166A(1) gives HMRC the power to make regulations for the purpose of monitoring and controlling the movement of goods for the purposes of combating risks to public health or safety, national security, or the environment, including plant or animal health.
	In practice this power would enable changes to be made to the legislative framework in the United Kingdom which govern entry and exit summary declarations and related processes, including as a result of any changes to international standards.
	Section 166A (2) provides a power to allow HMRC to make regulations to implement further international obligations relating to the movement of goods. This could include, for example, other international agreements regulating trade in endangered species or other goods subject to a prohibition or restriction. It could also support any legislative changes required to support any further customs cooperation initiatives which the Parties may agree within the framework of co-operation provisions set out in the TCA.
	Section 166A (3) offers indicative examples of the activities which may be regulated for. This includes information and declaratory requirements but also practical activity which would be carried out by Border Force on the ground, including searches, sampling of goods and subsequent handling of goods, including seizure and disposal.
	Section 166A (4) defines the movement of goods as a movement into, out of or within the United Kingdom and including a reference to their loading or unloading.
	Section 166A (5) defines "international obligation of the United Kingdom" to include obligations under international agreements or arrangements to which the UK is a party, whenever these were entered into.
	Section 166A (6) confirms that the power is capable of being exercised before a relevant international agreement or arrangement comes into effect, in case it is required to support the introduction of the agreement or arrangement.
	New section 166B (1) allows HMRC to disapply or simplify relevant requirements for operators with Authorised Economic Operator status for security and safety purposes (AEO-S) or take the status of AEOs into account in the exercise of a power or function under the regulations.
	Section 166B (2) provides a definition for "authorised economic operator" for this purpose and defines the relevant legislation as being the CEMA and customs legislation within the meaning of Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code.
	Section 166B (3) sets out that regulations may specify criteria that can be applied in determining whether or not AEO status should be granted, making the granting of AEO status conditional on compliance with conditions specified, and establish different classes of AEO.
	New section 166C sets out further provisions and limitations concerning the regulation-making provisions in section 166A and makes consequential changes to CEMA.
	Section 166C (1) sets out a list of ways that the powers given by section 166A can be exercised. For example, HMRC would need the power to impose fees for the exercise of functions in connection with these provisions, or to sanction a person if they do not comply with a requirement that is imposed.
	Sections 166C (2) and (3) provide that HMRC may set out in a public notice the administrative requirements relating to any requirement or condition imposed by the regulations or any declaration or application for which provision is made by the regulations.
	Section 166C (4) set limitations on regulations made under section 166A, ensuring that regulations cannot be used to impose or vary the amount of any duty or other form of taxation, or establish a public authority.
	Section 166C (5) sets out that regulations cannot include provisions which would fall within the legislative competence of the devolved administrations.
	Section 166C (6) provides the power that regulations made under section 166A can amend an enactment as defined in this Act, which ensure that it can apply to the relevant retained EU law.
	Section 166C (7) clarifies certain definitions for the purposes of the subsection.
	Subsection (3) of this section makes an amendment to section 172 of CEMA provisions to ensure that any statutory instrument to be made under new section 166A must be subject to the affirmative procedure if it were to amend primary or devolved legislation.