Preferential rates given unilaterally: enhanced parliamentary procedure, etc.

Taxation (Cross-border Trade) Bill – in a Public Bill Committee at 4:30 pm on 1st February 2018.

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‘(1) No regulations may be made by the Treasury in exercise of the power in section 10(1) except in accordance with the steps set out in subsections (2) and (4) to (6).

(2) The first step is that a Minister of the Crown must lay before the House of Commons—

(a) a statement on the matters specified in subsection (3); and

(b) a draft of the regulations that it is proposed be made.

(3) Those matters are the reasons for—

(a) the proposed application and non-application of the scheme to each country listed in Parts 2 and 3 of Schedule 3;

(b) any proposed conditions for the application of the lower rates or nil rate, and

(c) any proposed provisions about the variation, suspension and withdrawal of the application of the lower rates or nil rate.

(4) The second step is that a Minister of the Crown must make a motion for a resolution in the House of Commons setting out, in respect of proposed regulations of which a draft has been laid in accordance with subsection (2)(b)—

(a) each country to which the proposed regulations apply;

(b) the proposed conditions for the application of the lower rates or nil rate, and

(c) the proposed provisions about the variation, suspension and withdrawal of the application of the lower rates or nil rate.

(5) The third step is that the House of Commons passes a resolution arising from the motion made in the form specified in subsection (4) (whether in the form of that motion or as amended).

(6) The fourth step is that the regulations that may then be made must, in respect of any matters specified in subsection (4), give effect to the terms of the resolution referred to in subsection (5).

(7) No regulations may be made under the following provisions unless a draft has been laid before and approved by a resolution of the House of Commons—

(a) section 10(4)(a) (meaning of “arms and ammunition”);

(b) paragraph 2(1) of Schedule 3 (power to add or remove countries from lists in that Schedule).’—

This new clause establishes a system of enhanced parliamentary procedure for regulations setting lower import duties for eligible developing countries, with a requirement for the House of Commons to pass an amendable resolution authorising the key provisions of the proposed regulations, and also requires that certain other regulations are subject to the affirmative procedure.

Brought up, and read the First time.

Question put, That the clause be read a Second time.

The Committee divided:

Ayes 9, Noes 10.

Question accordingly negatived.

New Clause 5