I beg to move,
That the draft Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019, which were laid before this House on 23 July, be approved.
The purpose of this statutory instrument is to make changes to EU regulations governing the agricultural import and export licensing regime to ensure that they remain operable on our departure from the European Union. The instrument also revokes some obsolete and redundant regulations relating to the payment of export refunds in the dairy sector and on the administration of EU third country export quotas for cheese and skimmed milk powder.
I should point out that this instrument is rather different from the other three we are considering this afternoon, in that it does not relate to changes that are necessary due to transitional arrangements or dates. This is one of a small number of very minor SIs that were deprioritised in the run-up to the end of March, given that their applicability to the UK is quite limited and they were not judged to be sufficiently important to merit passing in time for the end of March. However, now that we have the luxury of time, it is possible to bring them forward.
This instrument seeks to make EU regulations governing the agricultural import and export licensing regime operable. In particular, the regulations make operability fixes to technical EU Commission regulations, providing for the issue of import and export licences for certain agricultural products; update EU regulatory cross-references to equivalent provisions in domestic legislation made under the Taxation (Cross-border Trade) Act 2018; and convert licence securities from euro values into sterling using the average annual exchange rate for 2018.
EU Commission regulations 2016/1237 and 2016/1239 provide for a licence system for the import and export of certain agricultural products and specific provisions for the import of hemp. Under those regulations, it is required that any import of husked, milled or broken rice, raw hemp and hemp seed or ethyl alcohol be subject to an import licence. Likewise, any export of husked or milled rice is subject to an export licence. The regulations also provide for specific provisions in relation to hemp seed imports other than for sowing, including the pre-registration of importers and requirements to prove the destination of goods.
The purpose of those common agricultural policy licences is primarily to provide a means of monitoring agricultural markets by having advance notice of goods entering and leaving the EU. However, given improvements in data collection at the border, the Commission has increasingly relied on real-time customs data as a means of monitoring markets, which has negated the need for licences. They are now limited to just a handful of products, for specific reason. That is why these measures are of declining importance and were not prioritised for passing by the end of March.
For example, rice import licences really serve only as a means of applying the EU’s variable import duty system, and hemp licences have been retained at the request of the directorate-general for migration and
home affairs, apparently to support EU drug policy, even though the information provided does not really contribute to that effort. This statutory instrument specifically amends Commission delegated regulation EU 2016/1237 and Commission implementing regulation EU 2016/1239, both passed on 18 May 2016, by replacing references to the EU with references to the UK and references to the EU Commission with references to the relevant UK authority. It replaces EU regulatory cross-references with references to equivalent provisions in domestic legislation already made under the Taxation (Cross-border Trade) Act 2018 and converts licence securities from euro values into sterling using the average annual exchange rate for 2018.
EU Commission regulation 1187/2009 sets out detailed rules for the provision of export licences and export refunds in the dairy sector.