HMAG152801 - Excise duty points: irregularity occurring in Northern Ireland during a distance selling arrangement to Northern Ireland
The relevant provisions are contained in The Excise Goods (Holding, Movement and Duty Point) Regulations 2010 (as amended) in force immediately before 11pm on 31 December 2020 as modified and applied in relation to excise goods in Northern Ireland by Part 1 of the Excise Duties (Northern Ireland Miscellaneous Modifications and Amendments) (EU Exit) Regulations 2020 (as amended) (commonly known as NI HMDP)).
This section applies where an irregularity occurs, or is detected, in Northern Ireland during a movement of excise goods that have already been released for consumption in an EU member state and are supposed to be moving to Northern Ireland under a distance selling arrangement but the requirements of Part 12 have not been complied with.
Where an irregularity occurs, or is detected, in Northern Ireland in these circumstances, an excise duty point arises under regulation 84.
Excise duty point
Where there is an excise duty point under regulation 84, the time of the duty point is when the irregularity occurs in Northern Ireland, or where it is not possible to establish when the irregularity occurred, the time when it was detected. Where it is not possible to establish whether the irregularity occurred in Northern Ireland or an EU Member State, it shall be deemed to have occurred in Northern Ireland at the time of the detection.
Where there is a failure to comply with the registration requirements for distance sales in Part 12, an irregularity is deemed to have occurred under regulation 84.
Person/s liable to pay the duty
The person/s liable to pay the duty when there is an irregularity in these circumstances are shown in regulation 17.
Under regulation 17(2)(b), the person liable to pay the duty is the consignor of the goods or their appointed tax representative in Northern Ireland.
Any other person participating in the irregularity is jointly and severally liable to pay the duty under regulation 17(3).
Circumstances when excise duty is not due
Where an excise duty point is deemed to have occurred in Northern Ireland and, within 3 years of the start of the movement, we ascertain that the irregularity occurred in an EU Member State and the duty has been paid or is not due in that EU Member State, this means that excise duty is no longer due in Northern Ireland (regulation 85 refers).
If the excise goods are lost or destroyed during a movement (supposedly under a distance selling arrangement) and HMRC are satisfied that the goods have been irretrievably lost or destroyed (for example, due to an accident, the nature of the goods, or some other unforeseeable event) then there is no excise duty point and no excise duty is due on those goods. This is by virtue of regulation 21 or 21A of NI HMDP.
However, if the excise goods are stolen during the movement, excise duty is due on those goods.