HMAG150401 - Excise duty points: excise goods found to be missing or deficient from a warehouse in Great Britain
The relevant provisions are contained in The Excise Goods (Holding, Movement and Duty Point) Regulations 2010 (HMDP).
This section applies when excise goods are found to be missing or deficient from a warehouse located in Great Britain.
Where you find that excise goods are missing or deficient from a warehouse and a decision is made that the loss is not due to natural wastage or other legitimate reasons (in other words it is not an allowable loss), there is a release for consumption under regulations 6(1)(a) and 7(1)(j), with an excise duty point arising under regulation 5.
Excise duty point
Where there is a release for consumption under regulations 6(1)(a) and 7(1)(j), an excise duty point arises under regulation 5. The excise duty point is the time when those goods were deficient or missing (i.e. released for consumption) in the warehouse. Where you are unable to determine the time when those goods were released for consumption, then the excise duty point is the time when you discovered the loss.
Person/s liable to pay the duty
The person/s liable to pay the duty when goods are released for consumption under regulations 6(1)(a) and 7(1)(j) are shown in regulation 8.
Under regulation 8(1) the person liable to pay the duty is the authorised warehousekeeper or any other person releasing the goods or on whose behalf the excise goods are released from the duty-suspension arrangement.
Where the excise goods are found to be missing or deficient from a warehouse the person liable to pay the duty will be the authorised warehousekeeper. Where you believe that the goods have been stolen from an excise warehouse then the warehousekeeper will normally be liable to pay the duty unless you can identify another person who was responsible for removing the goods from the warehouse.
Under regulation 8(2) any other person involved in the irregular departure is jointly and severally liable to pay the duty with the person specified in regulation 8(1).
Circumstances when UK duty is not due
Where you are satisfied that the absence (or deficiency) of those goods is due to a legitimate cause, then UK duty is not due on those goods. This is by virtue of regulation 7(2)(b). You will find more information in notice 197.