2019 No. 474

Exiting The European Union

Excise

Channel Tunnel

The Excise Duties (Miscellaneous Amendments) (EU Exit) (No. 3) Regulations 2019

Made6th March 2019

Laid before the House of Commons7th March 2019

Coming into force in accordance with regulation 1

The Commissioners for Her Majesty's Revenue and Customs make these Regulations, except regulations 10 to 17, in exercise of the powers conferred by—

a
section 11(1)(d) and (e) and (2) of the Channel Tunnel Act 1987 F1;
b
section 45(1), (2)(a), (b), (d) and (j), 48(11) and 52(2) of the Taxation (Cross-border Trade) Act 2018 F2.

The Treasury consider it appropriate, in consequence of, or otherwise in connection with, the withdrawal of the United Kingdom from the European Union to make regulations 1, and 10 to 17 of these Regulations and make them in exercise of the powers conferred by section 51(1)(c) of the Taxation (Cross-border Trade) Act 2018 F3.

The Commissioners for Her Majesty's Revenue and Customs and the Treasury consider it appropriate in consequence of, or otherwise in connection with, the withdrawal of the United Kingdom from the European Union, that the following Regulations come into force on such day as the Treasury may by regulations under section 52(2) of the Taxation (Cross-border Trade) Act 2018 appoint.

Annotations:

Amendments (Textual)

1987 c. 53. Section 11(1) provides that an order under that section may be made by the appropriate Minister. Section 13(1) provides that the appropriate Minister means, in relation to any matter, the Minister or Ministers in charge of any Government department or departments concerned with that matter. Section 13(2) provides that, where the Commissioners of Customs and Excise are concerned with any matter, section 13(1) shall apply as though the reference to a Minister or Ministers in charge of a Government department or departments concerned included a reference to the Commissioners of Customs and Excise. The functions of the Commissioners of Customs and Excise were transferred to the Commissioners for Her Majesty's Revenue and Customs by section 5 of the Commissioners for Revenue and Customs Act 2005 (c. 11). Section 50(1) of that Act provides that a reference to the Commissioners of Customs and Excise shall be taken as a reference to the Commissioners for Her Majesty's Revenue and Customs.

2018 c. 22. Section 49 of the Act 2018 defines “HMRC Commissioners” as the Commissioners for Her Majesty's Revenue and Customs for the purposes of sections 45 and 48.

Section 51(1) of the Taxation (Cross-border Trade) Act 2018 provides that regulations may be made by the “appropriate Minister”. Section 51(4) of that Act provides that the “appropriate Minister” includes the Treasury.

PART 1Introductory provision

Citation and commencementI21

These Regulations may be cited as the Excise Duties (Miscellaneous Amendments) (EU Exit) (No. 3) Regulations 2019 and come into force on such day as the Treasury may by regulations under section 52(2) of the Taxation (Cross-border Trade) Act 2018 appoint.

PART 2The Excise Duty Point (External and Internal Community Transit Procedure) Regulations 1998

RevocationsI82

The Excise Duty Point (External and Internal Community Transit Procedure) Regulations 1998 F4 and the Excise Duty Point (External and Internal Community Transit Procedure) (Amendment) Regulations 1998 F5 are revoked.

Transitional and saving provisionF253

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PART 3The Channel Tunnel (Alcoholic Liquor and Tobacco Products) Order 2010

Amendments to the Channel Tunnel (Alcoholic Liquor and Tobacco Products) Order 2010I94

1

The Channel Tunnel (Alcoholic Liquor and Tobacco Products) Order 2010 F6 is amended as follows.

2

After article 2, insert—

2A
The modifications made by paragraphs 1(a) and (ab), 4B and 4C of the Schedule continue to apply to any movement starting in a control zone F7 until the end of that movement.
Liability to excise duty in a control zone2B
1
Where an excise duty point occurs in a control zone, liability to excise duty is to be calculated in the same manner, and is subject to the same reliefs (on the same conditions) as if the excise duty point had occurred in the United Kingdom.
2
So far as is necessary to give effect to paragraph (1), any reference in an enactment relating to excise duty to the “United Kingdom” is to be regarded as including a reference to a control zone.
3
For the purposes of this article—
a
“excise duty” has the meaning given in section 49 of the Taxation (Cross-border Trade) Act 2018; and
b
“excise duty point” has the meaning given in section 1(1) of the Finance (No. 2) Act 1992 F8.

3

In paragraph 1 of the Schedule—

a

after paragraph (a), insert—

aa
in paragraph (b) of the definition of “customs suspensive procedure or arrangement”F9, regard the words “United Kingdom” as being followed by “or a control zone”; and
ab
after the meaning given for “transporter”, regard there as being—
“the tunnel” has the meaning provided in article 2(1) of the Channel Tunnel (Customs and Excise) Order 1990 F10.

b

omit paragraphs (b) and (c).

4

For paragraph 4 of the Schedule, substitute—

4
In regulation 6 of those Regulations—
a
regard the words “United Kingdom” in each of paragraphs (1), (2)(a) and (2)(b) as being followed by “or a control zone”; and
b
in paragraph 2(a), regard the words “excise goods” as being followed by “intended to be brought into the United Kingdom through the tunnel”.
4A
In regulation 7(1)(g) of those Regulations, regard the words “United Kingdom” as being followed by “or a control zone”.
4B
In regulation 37(1) of those Regulations, regard the words “wholly within the United Kingdom” as being followed by “or under a movement referred to in regulation 56(1B)”.
4C
In regulation 56 of those Regulations—
a
in paragraph (1)(a), regard the words “United Kingdom” as being followed by “or a control zone”; and
b
after paragraph (1A) F11, regard there as being inserted—
1B
Where the movement starts in a control zone, the condition in paragraph (1)(c) shall be regarded as satisfied where the goods proceed directly from the control zone through the tunnel to the United Kingdom and, once they have entered the United Kingdom, do not at any time leave the United Kingdom during the remaining course of the movement.

5

Omit paragraphs 5 to 10 of the Schedule.

6

In the modification made by paragraph 11 of the Schedule, omit sub-paragraph (4).

Transitional provisions relating to the Channel Tunnel (Alcoholic Liquor and Tobacco Products) Order 2010I15

1

The amendments in regulation 4 do not have effect in relation to goods in the course of a movement on F17IP completion day.

F202

For the purposes of paragraph (1), goods are in the course of a movement on IP completion day where those goods have been dispatched before that day.

PART 4The Excise Goods (Holding, Movement and Duty Point) Regulations 2010

CHAPTER 1Amendment of the Excise Goods (Holding, Movement and Duty Point) Regulations 2010

Amendment of the Excise Goods (Holding, Movement and Duty Point) Regulations 2010I46

1

The Excise Goods (Holding, Movement and Duty Point) Regulations 2010 are amended as follows F12.

2

In regulation 3(1)—

a

for the definition of “customs suspensive procedure or arrangement” substitute—

“customs suspensive procedure or arrangement” means—
a
any one of the special Customs procedures provided for in Part 1 of the TCTA 2018 F13 (other than an authorised use procedure F14); and
b
the situation between the goods being presented to the Commissioners upon their entry into the United Kingdom in accordance with paragraph 1(1) of Schedule 1 to the TCTA 2018 and the earlier of—
i
the end of the period of 90 days beginning with the day on which the goods are so presented, and
ii
a Customs declaration under Schedule 1 to that Act being accepted in respect of the goods;

b

for the definition of “place of importation” substitute—

“place of importation” means the place where excise goods are when a declaration for the free-circulation procedure F15 or an authorised use procedure in respect of those goods is accepted in accordance with Schedule 1 to the TCTA 2018;

3

In regulation 3(3), for sub-paragraph (a) substitute—

a
starts when—
i
the goods leave a tax warehouse (where the consignor is an authorised warehousekeeper); or
ii
a declaration for the free-circulation procedure or an authorised use procedure is accepted in accordance with Schedule 1 to the TCTA 2018 (where the consignor is a registered consignor), and

4

In regulation 19(1), for “(2) to (5)”, substitute “ (3) and (4) ”.

Application of Part 8 to certain energy productsF267

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Consequential provisionsI118

Regulations 7(2)(e) and (n) and (4)(a) of the Excise Goods (Holding, Movement and Duty Point) (Amendment etc.) (EU Exit) Regulations 2019 are revoked.

Transitional and saving provisionI79

Part 4 of the Excise Goods (Holding, Movement and Duty Point) (Amendment etc.) (EU Exit) Regulations 2019 applies to the amendments made by F19regulation 6 as if they had been made by those Regulations.

CHAPTER 2F18Importation – transitional provisions

Annotations:

Amendments (Textual)

F18

Pt. 4 Ch. 2 heading substituted (31.12.2020) by The Customs and Excise (Miscellaneous Provisions and Amendments) (EU Exit) Regulations 2019 (S.I. 2019/1215), regs. 1(2), 16(2); S.I. 2020/1643, reg. 2, Sch.

Modification of the Excise Goods (Holding, Movement and Duty Point) Regulations 2010I6F2410

The application of the Excise Goods (Holding, Movement and Duty Point) Regulations 2010 to excise goods in respect of which—

a

a declaration for the free-circulation procedure or an authorised use procedure has been made (and not amended or withdrawn unless in accordance with the Customs (Import Duty) (EU Exit) Regulations 2018); and

b

the notification referred to in paragraph 11(1) of Schedule 1 to the Taxation (Cross-border Trade) Act 2018 is treated as having been given under regulation 4(3B) of the Customs (Import Duty) (EU Exit) Regulations 2018,

is modified as set out in this chapter.

InterpretationI511

In regulation 3(1)—

a

after the definition of “fallback report of receipt”, regard as inserted—

“import duty regulations” means the Customs (Import Duty) (EU Exit) Regulations 2018;

F22b

after the definition of “TPDA 1979” regard as inserted—

“transitional arrival location” means the place where excise goods are when the notification referred to in paragraph 11(1) of Schedule 1 to the Taxation (Cross-border Trade) Act 2018 is treated as having been given under regulation 4(3B) of the import duty regulations.

Contravention of conditions or requirements-duty point and persons liable to payF2912

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Time of payment of the dutyI313

In regulation 20—

a

in paragraph (1) before sub-paragraph (a) regard as inserted—

aa
paragraphs (3) and (4);

b

after paragraph (2) regard as inserted—

3
Paragraph (4) applies where—
a
excise goods are released for consumption at a F23transitional arrival location pursuant to regulation 6(1)(d); and
b
there is no duty deferment arrangement in place in respect of the goods.
4
The time when the duty must be paid is the earlier of—
a
the latest time by which the notification required under regulation 4(3C) of the import duty regulations must be given in accordance with regulation 4(3D)(c) of those regulations; or
b
the time when that notification is in fact given.

Movements of excise goods from a F21transitional arrival location under duty suspension arrangementsF2814

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Relevant regulationsF2815

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Transitional provisionF2816

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PART 5Miscellaneous modifications and amendments relating to excise duties

Modification of the Tobacco Products Regulations 2001F2717

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Amendment of the Excise Duties (Miscellaneous Amendments) (EU Exit) Regulations 2019I1018

In regulation 5(2) of the Excise Duties (Miscellaneous Amendments) (EU Exit) Regulations 2019 F16 (transitional and savings provision: The Excise Goods (Drawback) Regulations 1995), for the words “in each case”, to the end, substitute “ after those words were inserted the words “or, in specified circumstances and on specified conditions, the specified documents” ”.

Ruth StanierAngela MacDonald Two of the Commissioners for Her Majesty's Revenue and Customs

Craig WhittakerPaul Maynard Two of the Lords Commissioners of Her Majesty's Treasury

(This note is not part of the Regulations)

These Regulations make miscellaneous amendments and modifications to secondary legislation relating to excise duties and are made to ensure the effective operation of the law applying to excise duties on the withdrawal of the United Kingdom (“UK”) from the European Union (“EU”).

Part 1 deals with the commencement of these Regulations, which will come into force on a day to be appointed by the Treasury by regulations under section 52(2) of the Taxation (Cross-border Trade) Act 2018 (c. 22).

Part 2 revokes the Excise Duty Point (External and Internal Community Transit Procedure) Regulations 1998 (S.I. 1998/202) and the Excise Duty Point (External and Internal Community Transit Procedure) (Amendment) Regulations 1998 (S.I. 1998/3110). The former Regulations (which are amended by the latter) establish an excise duty point on, and address the liability of persons for, irregularities in customs movements under the external and internal Community transit procedures. Those specific procedures will no longer apply on the UK's exit from the EU. The duty point and liability for breaches of customs transit procedures after exit will be addressed by the Excise Goods (Holding, Movement and Duty Point) Regulations 2010 (S.I. 2010/593), as amended on EU exit by the Excise Goods (Holding, Movement and Duty Point) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/13) and by Part 4 of these Regulations. Transitional provision is made for applicable transit movements in progress on exit day.

Part 3 amends the Channel Tunnel (Alcoholic Liquor and Tobacco Products) Order 2010, which provides for the modified application of the Excise Goods (Holding, Movement and Duty Point) Regulations 2010 in the control zone for the Channel Tunnel (at Coquelles, the “control zone”). This Part updates those modifications to reflect changes to those Regulations on EU Exit. It also ensures that excise duty will be calculated in the same manner, and is subject to the same reliefs (on the same conditions), in the control zone as it would be at any other place of entry to the UK under any excise duty enactment. Transitional and saving provisions are made for movements in progress on exit day.

Part 4, chapter 1, further amends the Excise Goods (Holding, Movement and Duty Point) Regulations 2010, as previously amended for EU exit by S.I. 2019/13. Changes to the definitions of “place of importation”, “customs suspensive procedure or arrangement” and to the start of a movement of excise goods under a duty suspension arrangement are made in consequences of changes to customs legislation introduced under the Taxation (Cross-border) Trade Act 2018 and a minor omission in S.I 2019/13 is corrected. The chapter also provides that the transitional and savings provisions made in Part 4 of S.I. 2019/13 apply to the amendments made in this chapter.

Part 4, chapter 2, makes modifications to the Excise Goods (Holding, Movement and Duty Point) Regulations 2010 in respect of excise goods imported into the United Kingdom on RoRo vehicles arriving at RoRo listed locations, or the control zone, to reflect changes made to customs procedures. A RoRo vehicle is a freight vehicle or trailer that is boarded onto a vessel or train. RoRo listed locations are locations where RoRo vehicles arrive in the UK and are listed in a notice published by HMRC in accordance with the Customs (Import Duty) (EU Exit) Regulations 2018 (S.I. 2018/1248).

Part 5 makes certain miscellaneous modifications and amendments to secondary legislation relating to excise duty. In particular, it makes a minor modification to the Tobacco Products Regulation 2001 (S.I. 2001/1712) for a 3 month period in the event that the UK leaves the EU without a deal on 29th March 2019. It also corrects a minor drafting error in the Excise Duties (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/14).

This instrument will be covered by an overarching HMRC impact assessment (third edition) which will be published and available on the website at https://www.gov.uk/government/collections/customs-vat-and-excise-regulations-leaving-the-eu-with-no-deal.