What powers does section 3 of the Provisional Collection of Taxes Act 1968 give HMRC for new customs duties?

Section 3 empowers HMRC to require importers who bring goods into the UK or clear them from bonded warehouses on or after the date specified in a House of Commons resolution to provide security, such as a bond or deposit, guaranteeing payment of the new customs duty if Parliament subsequently enacts confirming legislation.

How does section 3 protect revenue for new excise duties not yet having statutory effect?

For new excise duties, HMRC can make regulations applying the existing customs and excise enforcement framework — including rules on trades, premises, and persons involved — to secure payment of any duty that may become legally chargeable once an Act of Parliament confirming the House of Commons resolution is passed.

What penalties apply for breaching regulations made under section 3 of the PCTA 1968?

Anyone who breaches regulations made under section 3 faces a financial penalty at level 3 on the standard scale, currently £1,000. Additionally, any goods connected with the offence may be seized and forfeited by HMRC, providing a meaningful deterrent against attempts to evade the anticipated duty during the interim period.

What happens to the security if the customs or excise duty resolution is not confirmed by Parliament?

If Parliament does not pass an Act confirming the House of Commons resolution, no duty is legally owed and any security provided by the importer — such as a bond or deposit — is released. The security mechanism only results in actual payment if and when confirming legislation comes into force.

Provisional Collection of Taxes Act 1968 section 3

Customs and excise: provisions for securing duties under resolutions not having statutory effect

Section 3 deals with how HMRC can protect the revenue when the House of Commons passes a resolution imposing a new customs or excise duty from a specified date, but the resolution cannot be given temporary statutory effect under section 1 of the Act.

Where a new customs duty is resolved upon, HMRC can require importers to provide security that they will pay the duty if and when an Act of Parliament confirming the resolution comes into force.
Where a new excise duty is resolved upon, HMRC can make regulations to secure payment of any duty that may become legally chargeable once the confirming Act is passed, applying existing customs and excise rules to the relevant trade, premises and persons involved.
Anyone who breaches regulations made under this section faces a penalty at level 3 on the standard scale, and any goods connected with the offence may be forfeited.
This section and the following section (section 4) are to be read together with the Customs and Excise Management Act 1979.

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