Exemption for outstandingly valuable and important pre-1918 items Section 3: Applications for exemption certificates
This section provides for the certification process which applies to the section 2 exemption. Subsection (1) sets out the information an applicant is required to provide when completing an application, including information demonstrating how the item meets the criteria for this exemption. The information required will include both the physical details and description of the item, including photographs, and any additional information that the applicant considers is relevant or specified in regulations, and makes the case for the item meeting the criteria. This could, for instance, include detail of the item having been previously displayed in a museum, cited in an academic work, or evidence of its provenance or historical associations.
	As set out in subsection (2), following the submission of an application this application will be referred, by the Secretary of State, to one of the prescribed institutions, as outlined in section 2(5). This referral is dependent upon the Secretary of State considering the initial application and confirming that the application includes all necessary details. If the application clearly fails to meet the conditions set out in section 2(2), the application would not be accepted by the Secretary of State or put forward for consideration by a prescribed institution.
	If the Secretary of State refuses an application, s/he must inform the applicant of this outcome and the reason/s for refusal. The item would not be exempt from the prohibition.
	If the Secretary of State considers that the application does provide all necessary details, it will be referred to a prescribed institution with relevant expertise. Subsections (3) and (4) ensure that an individual expert within a prescribed institution may be nominated to carry out the necessary assessment subject to that individual expert giving their consent to the nomination. As set out in subsection (3) an expert from a prescribed institution (the ‘assessor’) must:
undertake an assessment of the information provided in the application against the conditions outlined in Section 2(2);
based on this assessment, the assessor must provide their advice to the Secretary of State as to whether the item would qualify for the exemption based on the conditions set out in section 2(2); and
the assessor must provide a reason to the Secretary of State as to why, in the assessor’s opinion, the item does or does not satisfy the conditions.
	Subsection (5) ensures that the Secretary of State is able to cover the reasonable costs incurred by the prescribed institution and/or assessor in each instance in which an assessment is carried out. In practice, it is intended that these costs will be recovered through a fee charged to applicants. A power is conferred on the Secretary of State, having consulted the Scottish Ministers, Welsh Ministers and the relevant Northern Ireland department, to set and maintain the level of this fee through regulations. This fee will cover: (i) administrative costs incurred by the Secretary of State in handling the application; and (ii) if the application is referred to an assessor, the reasonable costs incurred by the assessor, for example, the cost to the prescribed institution of an expert assessor’s time to assess an item and to submit a report with their recommendations to the Secretary of State for consideration.
	Subsection (6) ensures that the Secretary of State takes the decision to grant or refuse an application for an exemption certificate. This decision will be informed by the advice provided by the expert assessor. If the Secretary of State refuses to issue an exemption certificate, the applicant will be notified, including of the reasons why the item was not considered to meet the criteria. Dealing in that item therefore would remain prohibited. As set out in subsection (7), if the Secretary of State grants the application, an exemption certificate will be issued to the applicant.
	It should be noted that the certification process provided for in section 3 is applied in addition to existing certification and permitting requirements under the EU Wildlife Trade Regulations. For example, for an item of outstanding artistic value and importance to be legally sold to a buyer in another EU Member State or third country, an exemption certificate, as stipulated under the Act, and relevant certificates or permits, as stipulated under the EU Wildlife Trade Regulations, would be required.