HC Deb 02 March 1987 vol 111 cc517-8W
Mr. Alton

asked the Chancellor of the Exchequer whether he will consider reducing the free ports documentary requirements for United Kingdom goods to the level applicable in bonded warehouses.

Mr. Brooke

Bonded warehouses are premises approved for the storage of goods subject to excise duty or both customs and excise duty. Officially approved documents are used for the receipt and delivery of United Kingdom goods and comprehensive records of receipt, storage, processing and delivery are required. United Kingdom goods taken into a free zone require less documentation, having only to be entered into the operator's record on receipt and to be the subject of a customs declaration on delivery.

Mr. Alton

asked the Chancellor of the Exchequer whether he will allow British free ports to hold goods under tempory importation agreements.

Mr. Brooke

British free zones are already allowed to hold temporarily imported goods under the conditions laid down in article 28 of the Council regulation EEC/3599/82 which is directly applicable in the United Kingdom.

Mr. Alton

asked the Chancellor of the Exchequer whether he will consider removing the need for British free ports to have an inward processing relief certificate for duty-free operations; and whether he will make a statement.

Mr. Brooke

No. Specific authorisation for inwards processing relief, whether in the British free zones or generally elsewhere, is required by EC legislation. Its purpose is to guard against the use of third country goods when similar Community products are available. Removing the need for authorisation could damage the interests of Community producers.

Mr. Alton

asked the Chancellor of the Exchequer what is his policy on British free ports in the light of the recent report by Mr. Timothy F. Beyer Helm a copy of which has been forwarded to him; and if he will make a statement.

Mr. Brooke

The Government do not propose to change their policy on the free port experiment in the light of Mr. Helm's report. A review of the practical operation of free zones, including the present VAT requirements, was announced in the White Paper "Building Businesses… Not Barriers".

Mr. MacGregor

Information is not readily available in the precise form requested. Estimates which are available, for calendar years 1984 and 1985, are given in the table: