Draft legislation: the Fulfilment Businesses (Approval Scheme) Regulations 2018

At Budget 2016, the government announced that it would introduce the Fulfilment House Due Diligence Scheme (FHDDS) from April 2018. The scheme applies to businesses that store any goods imported from outside the EU for or on behalf of someone outside the EU.

Following a public consultation in summer 2016, primary legislation introducing the scheme is currently under consideration by parliament as part of the Finance (No 2) Bill 2017.

To complete the legislative framework for the scheme, a statutory instrument is required.

The Fulfilment Business (Approval Scheme) Regulations 2018 set out in detail the application process, obligations of third country goods fulfilment businesses and penalties.

This technical consultation seeks comments from stakeholders on the draft statutory instrument. In particular, we seek a better understanding of:

a) The impact on fulfilment businesses in applying the obligations of the scheme, including record-keeping requirements

b) Whether the provisions for group registrations in Part 5 will be beneficial to group companies

c) The impact of the scheme on small and micro businesses

This is of interest to businesses in the warehousing, storage, fulfilment, imported goods and transport sectors, as well as those involved in e-commerce.

Send any comments about this technical consultation by 15 December 2017 to email: indirecttax.projectteam@hmrc.gsi.gov.uk . Mark your email ‘FHDDS’.

Guidance on the Fulfilment House Due Diligence Scheme will be available on GOV.UK soon.