The Cross-Border Trade (Public Notices) (EU Exit) Regulations 2019 (the Regulations) were laid before Parliament on 7 October 2019. The Regulations were intended to ease the flow of trade and provide flexibility. However, following opposition, HMRC has now confirmed the Regulations will be revoked.
Public Law Project (PLP) wrote a letter before action to HM Treasury (HMT), HMRC and other interested parties on 9 October 2019, detailing a proposed claim for judicial review of the Regulations. There was unease about the nature of the powers the Regulations conferred on HMT and it was claimed that they were ultra vires
HMRC did not respond in detail, or accept PLP’s claims, but confirmed on 17 October 2019, in a letter to PLP, that it would treat the Regulations as revoked with immediate effect.
It is expected that HMRC and HMT will now consult on alternative rules to bridge any post-Brexit gap in trade, although the form they will take remains to be seen.
HMRC’s response to PLP can be viewed here.