Holding and Movements Assurance Guidance

HMAG151301 - Excise duty points: failure to comply with terms and conditions for excise goods in free zones 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 deposited, kept, dealt with, removed or destroyed in a free zone excise warehouse in contravention of any terms and conditions imposed under regulation 85B, 85C or 85D. This covers the conditions in respect of holding and authorisation to operate in a free zone excise warehouse.

Where there is a contravention of the conditions, the goods are treated as having been imported into Great Britain and an excise duty point arises under regulation 6(1)(d).

Excise duty point

Where there is a contravention of the conditions set out in regulations 85B, 85C or 85D, an excise duty point arises under regulation 6(1)(d). The duty point is the time the contravention occurred or first came to our attention.

Person/s liable to pay the duty

The person/s liable to pay the duty where an excise duty point arises under regulation 85E is the authorised excise free zone business.

Under regulation 85E(3), where more than one person is involved in the contravention leading to the excise duty point, each person is jointly and severally liable to pay the duty.