HMAG150601 - Excise duty points: unlawful movement of excise goods started by a registered consignor in Great Britain

The relevant provisions are contained in The Excise Goods (Holding, Movement and Duty Point) Regulations 2010 (HMDP).

This section applies where excise goods have been imported into Great Britain under the correct customs procedure and the goods have been correctly declared to free circulation and excise duty-suspension. In such cases, the excise duty-suspended movement can only be started by a registered consignor in Great Britain. However, the registered consignor fails to consign the excise goods under duty-suspension arrangements to a correct destination under regulation 37(1)(b) or fails to ensure the goods are moved in accordance with the conditions prescribed in regulation 39(1).

Goods moved under duty-suspension arrangements when started by a registered consignor can only be consigned from the place of importation to:

  • a tax warehouse approved to receive excise goods of that class or description in the United Kingdom; and
  • a place from where they will leave the territory of the United Kingdom.

Excise goods may not be moved under duty-suspension arrangements unless:

  • there is a movement guarantee in place, provided by someone with an approved connection with the goods, and
  • the procedures in Part 8 (movements of excise goods wholly within the United Kingdom under duty-suspension arrangements) are complied with.

This section also applies in cases where it later transpires that the movement guarantee recorded on EMCS or Fallback document by the registered consignor was not valid. For example, if the person shown as providing the movement guarantee was not eligible to provide that guarantee (was not one of the parties able to provide the guarantee) or that person is able to demonstrate that they did not give their permission for their guarantee to be used for that movement.  

In this case the goods are released for consumption under regulations 6(1)(a) and 7(1)(g), 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)(g), an excise duty point arises under regulation 5. The excise duty point is the time the goods left the duty-suspension arrangement. In most cases, this would be the time when the unlawful movement is started by the registered consignor.

Person/s liable to pay the duty

The person/s liable to pay the duty when goods are released for consumption under regulation 6(1)(a) and 7(1)(g) are shown in regulation 8.

Under regulation 8(1), the person liable to pay is the person releasing the goods or on whose behalf the excise goods are released from the duty-suspension arrangement. Where the movement is started by a registered consignor, the person liable to pay the duty is the person releasing the goods or on whose behalf the excise goods are released from the duty-suspension arrangement. In most cases, this would be the registered consignor who started the movement.

There is no joint and several liability provision in this scenario.