Commonwealth Preference (Standstill Area) Regulations 1973
| Jurisdiction | UK Non-devolved |
| Citation | SI 2069/1973 |
| Year | 1973 |
1973 No. 2069
CUSTOMS AND EXCISE
The Commonwealth Preference (Standstill Area) Regulations 19737thDecember 1973
10thDecember 1973
1stJanuary 1974
The Secretary of State, by virtue of powers conferred by section 12(2) of the Import Duties Act 1958(a) and now vested in him(b) and of the powers conferred on him by section 2(1) of the Finance Act 1973(c) and of all other powers enabling him in that behalf, hereby makes the following Regulations:—
Citation, Commencement and Interpretation
1.—(1) These Regulations may be cited as the Commonwealth Preference (Standstill Area) Regulations 1973 and shall come into operation on 1st January 1974.
(2) The Interpretation Act 1889(d) shall apply for the interpretation of these Regulations as it applies for the interpretation of an Act of Parliament.
(3) In these Regulations—
(a) "factory", in relation to any goods, means the place where the goods were manufactured and
(b) references to goods include references to any containers or other forms of interior packing in which the goods are packed, being containers or packing of a type ordinarily sold with similar goods when they are sold retail.
2. For the purposes of any Order made under the Import Duties Act 1958 or under the Finance Act 1973, the question whether goods are of the part of the Commonwealth Preference area formed by the countries named in Schedule 1 hereto (hereinafter referred to as "the standstill area") shall be determined in accordance with the following Regulations.
Consignment of Goods
3. Goods grown, produced or manufactured in a country of the standstill area shall not be treated as goods of that area unless they are consigned to the United Kingdom from such a country:
Provided that nothing in this Regulation shall affect the operation of section 2(9) of the Import Duties Act 1958 (under which goods of Swaziland, Botswana,
(a) 1958 c. 6.
(b) See S.I. 1970/1537 (1970 III, p. 5293).
(c) 1973 c. 51.
(d) 1889 c. 63.
Malawi or Zambia are deemed to be consigned from those countries if consigned from Lourenco Marques or, in the case of the three last-mentioned countries, from Beira).
Goods manufactured in the Commonwealth Preference standstill Area
4.—(1) Goods manufactured in the standstill area shall nonetheless not be treated as manufactured there unless at least the appropriate proportion of the costs of their manufacture is attributable to area expenditure, as defined in Regulation 6.
(2) Subject to the provisions of Regulation 7 (which relates to manufactured sugar and tobacco), the appropriate proportion, for the purposes of duties chargeable on any goods either as such or in respect of any article contained in them as a part or ingredient, shall be—
(a) in the case of goods falling within a description of goods
specified in Part I of Schedule 2 hereto … … … 75 per cent
(b) in the case of goods not falling within any such description
but falling within a description of goods specified in
Part II of Schedule 2 hereto … … … 50 per cent
(c) in the case of any other goods … … … 25 per cent
Costs of manufacture
5.—(1) For the purposes of these Regulations, the costs of manufacture of any goods shall be the costs incurred by the manufacturer in relation to those goods before they are dispatched in their finished state and shall include the following items:—
(a) the costs to the manufacturer as received into the factory of any materials (including components and unfinished goods) used in the manufacture of the goods, less the amount of any customs or excise duty or any other duty or tax incurred in respect of such materials which is subsequently refunded on the exportation of the goods;
(b) the cost of labour directly employed in the manufacture of the goods;
(c) the factory overhead costs incurred in relation to the manufacture of the goods in respect of—
(i) rent, rates and taxes, motive power, electricity, gas, fuel, water, lighting and heating;
(ii) factory supervision, including the costs of employing managers, foremen, timekeepers, watchmen and other similar officers and servants of the manufacturer;
(iii) maintenance, repairs and renewals of plant, machinery, tools and factory buildings;
(iv) depreciation of plant, machinery and tools;
(v) interest on capital outlay on the factory buildings and land;
(vi) interest on depreciated value of plant, machinery and tools;
(d) the cost of any process carried out in the course of the manufacture of the goods by any independent contractor in performance of a contract with the manufacturer.
(2) In computing the costs of manufacture as aforesaid the following items shall not be included:—
(a) the cost of exterior packing:
(b) the manufacturer's profit or the profit or remuneration of any trader, broker, exporter or other person dealing with the goods in their finished manufactured state;
(c) royalties;
(d) the cost of carriage and freight or insurance or any other charges incurred in respect of the goods after their manufacture.
Area expenditure
6.—(1) Without prejudice to the provisions of paragraph (2) of this Regulation area expenditure...
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