§ Mr. Best
asked the Chancellor of the Exchequer, further to his answer to the hon. Member for Ynys Môn of 3 June, Official Report, column 470–1, what customs and excise duty reliefs are presently available in United Kingdom freeports; if he will make an order exempting supplies made within the United Kingdom freeports from domestic value added tax and enabling excise goods to be stored without payment of duty; and if he will make a statement.
§ Mr. Brooke
Customs duty is not charged on goods imported from third countries which are placed in freeports for storage or for processing prior to exportation from the Community. Unless an excise warehouse has been approved in a freeport, excise duty reliefs are limited to those which may be allowed under the Customs and Excise Acts.
The application of domestic VAT in freeports is to be reviewed by Customs and Excise. I shall await the outcome of the review before considering any order exempting the supplies made in freeports from this tax. As to excise duty, excise goods may be stored in freeports without payment 489W of duty in excise warehouses; such warehouses need to be approved under the normal criteria by Customs and Excise.