HMAG150800 - Excise duty points: goods already 'released for consumption' in another Member State and held for a commercial purpose in the UK

This applies where excise goods are transported to and held in the UK for a commercial purpose, where no attempt has been made to comply with duty-paid arrangements. It applies to goods which have already been released for consumption in the Member State of dispatch, including those already subject to an irregular departure in the other Member State.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) Where it is found that the duty-paid movement was genuine but there is a contravention of the conditions in regulation 69 then you should refer to HMAG150900 instead, in particular the reference to Part 11 of the HMDP Regulations.

The duty point is provided by regulation 13(1) and is the time when the goods are first held for a commercial purpose in the UK.

Goods are considered to be held for a commercial purpose when they are held by a person other than a private individual or by a private individual for a purpose other than his own use. It is important also to remember that own use includes gifts, providing no payment or payment in kind is made.

Cases involving private individuals
Examples when regulation 13 is appropriate
Payment of the duty
Assessments where the goods have been seized and have passed the condemnation stage
Where more than one person is severally liable for the duty under regulation 13

Cases involving private individuals

Regulation 13 does not normally apply to goods acquired by a person for their own use and transported to the UK from another Member State by that person. However, it does apply when we are satisfied that goods brought back by travellers are held, or will be subsequently held for a commercial purpose in the UK. For example if those goods are sold to another person for any kind of payment.

To help determine whether goods are being held for a commercial purpose in the UK, regard should be taken of the factors contained in regulation 13(4). These factors should be taken into account by Border Force to determine whether goods transported by a person from another Member State are for that person’s own use.

Where the person maintains that the goods are to be delivered to another Member State, and are therefore not being held for a commercial purpose in the UK, then we would expect that person to produce evidence or at least offer a reasonable explanation for their delivery to another Member State. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

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Examples when regulation 13 is appropriate

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Payment of the duty

To place liability on a person under regulation 13 you must be able to establish a link between the action of the person/s and the excise duty point.

In most cases, only one person is liable for the duty under regulation 13(2).

This will be the person:

  • making the delivery of the goods,
  • holding the goods intended for delivery, or
  • to whom the goods are delivered.

The type of person who can be caught under each category is fairly extensive. In some cases, the person you consider can be held liable for the duty may fall under one or more of these categories. In this situation, you should make your judgement on the best evidence you hold. You may also come across instances where more than one person could be held liable to pay the duty under each of the categories below. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

  • The person making the delivery can be defined in a simple physical sense but can also be construed more widely. Each case must therefore be reviewed on its own merit and you will need a balanced argument showing why you consider that particular person is making the delivery.

In a physical sense means the actual carriage of the goods, which in the case of large commercial consignments, will usually be carried out by a self employed driver or by a haulage company who employs drivers or contracts out haulage work. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Making the delivery can also be construed more widely to include other people involved in the supply of the goods, such as the seller of the goods, the person arranging for the goods to be delivered and the owner of the goods. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

  • The person holding the goods intended for delivery is fairly self explanatory. However, to be consistent, our advice is that this means the actual physical possession of the goods.
  • The person to whom the goods are delivered is also fairly self explanatory. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

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Assessments where the goods have been seized and have passed the condemnation stage

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Where more than one person is severally liable for the duty under regulation 13

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