The Treasury advises that the above Order has been made and comes into operation as follows –
(a) article 3(1) and article 3(2) for the purpose of conferring powers on the Treasury to make regulations in relation to the Scheme on 26 March 2018
(b) article 3(3) on 1 April 2018 in relation to appeals, and
(c) article 3(2) for all other purposes and article 3(4) on 1 April 2019.
The amendment to the Value Added Tax Act 1996, by inserting new sections 18G to 18N, and Schedule 5B, introduces the Fulfilment House Due Diligence Scheme (“the Scheme”) and will require third country goods fulfilment businesses to be registered by the Treasury where –
(a) the goods are imported from a country outside the EU
(b) the goods are owned by, or stored on behalf of, someone established outside the EU, and
(c) the goods are being offered for sale and have not been sold in the Island before.
Fulfilment businesses, which are defined in the new section 18G and are located in the Island will have to register with the Treasury, keep certain records and carry out robust due diligence checks on their overseas customers. The new provisions are intended to make it more difficult for non-compliant overseas businesses to trade in the Island and will enable the Treasury to identify and tackle them more easily.
When to register
|
When you start trading |
When you need to apply |
|
Before 1 April 2018 |
On or before 30 June 2018 |
|
From 1 April 2018 to 30 June 2018 |
On or before 30 September 2018 |
|
From 1 July 2018 |
Before 1 October 2018 or before the day on which you started trading (whichever is later) |
How to apply
Please contact the Customs and Excise Division for details of how to apply for approval for the Scheme.
The full provisions of the Scheme will come into operation on 1 April 2019 when any person (including corporate bodies) carrying on a third country goods fulfilment business and not approved by the Treasury will commit an offence.
The amendments make changes that correspond to those made in the United Kingdom by the Finance (No. 2) Act 2017 (of Parliament).
