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HMRC internal manual

Oils Technical Manual

Intra-EU Movements: Law

The principal law governing the EU movement of oils is EU Directive 2008/118 (General arrangements for excise duty), which is transposed into the UK’s domestic legislation mainly by the Excise Goods (Holding, Movement and Duty Point) Regulations 2010. There is also Directive (EC) No 2003/96, the Energy Products Directive (EPD), and the UK Regulations implementing these.

Directive 2008/118

This Directive forms the basis for:

  • the electronic system (EMCS) for the holding and movement of goods liable to excise duties
  • the tax warehouse and Registered Consignors and Consignees system for those exporting and importing within the EU
  • the rules on mutual assistance with other EU tax authorities

The full body of the text which can be found using Lex-Nex on the website, establishes the requirements for the holding & movement of excise goods and the definition of authorised warehouse-keeper, tax-warehouse, suspension arrangements and registered traders.

Excise Goods (Holding, Movement and Duty Point) Regulations 2010 SI 2010/593 implements EU Directive 2008/118.

These regulations build on the earlier EU-wide holding and movement Directive 92/12 and the regulations that preceded these, which were designed to permit the free movement of excise goods with no customs formalities at frontiers, enabling UK exporters and importers to continue with intra- community trade from 1 January 1993.

The regulations cover duty-suspended movements between Member States. They fix the duty point for EU movements where there has been an irregularity, for example where an eAD report of receipt has not been returned to the consignor within 5 days of the goods having been received.

Council Directive (EC) No 2003/96, 2003 (Energy Products Directive)

‘on the restructuring of the Community Framework for the taxation of Energy Products & Electricity’.

Introduces taxation on energy products and on electricity, including the use of mineral oils. Annexe II deals with reduced rates of taxation and exemptions from such taxation referred to in Article 18(1).

The Directive covers the following issues (previously contained in Directives 92/81 and 92/82/EEC).

  • Restructures the community framework for the taxation of energy products
  • Clarifies what products are subject to control as oil
  • Defines the circumstances in which relief from excise duty can be allowed
  • Covers the procedure known as Standard Temperature Accounting (STA)
  • The minimum rates of duty for the member states who have been permitted to defer introduction of these rates

The full body of the text can be found using Lex-Nex on the website and in the Purple Book 3B.