TC09158 - [2024] UKFTT 00369 (TC)

Where goods are held outside a duty suspension arrangement, and UK excise duty has not been paid, relieved, remitted or deferred under a duty deferment arrangement, a duty point is created under reg. 6(1) of the Excise Goods Regulations. Section 1 of the Finance (No. 2) Act 1992 contains the authority for making regulations to implement the provisions of Directive 2008/118/EC (‘the 2008 Directive’) concerning the chargeability of goods to excise duty in the United Kingdom, and persons liable to pay such duty. The Excise Goods Regulations implement provisions of the 2008 Directive.

Regulation 5 of the Excise Goods Regulations provides that there is an excise “duty point” at the time when excise goods are released for consumption in the United Kingdom. Regulation 6 of the Excise Goods Regulations provides that:

“6.

—(1) Excise goods are released for consumption in the United Kingdom at the time when the goods—

(a)

leave a duty suspension arrangement;

(b)

are held outside a duty suspension arrangement and ... excise duty on those goods has not been paid, relieved, remitted or deferred under a duty deferment arrangement;

(c)

are produced outside a duty suspension arrangement; or

(d)

are charged with duty at importation unless they are placed, immediately upon importation, under a duty suspension arrangement.”

Therefore, four excise duty points are prescribed by reg. 6.

Regulation 10(1) of the Excise Goods Regulations identifies the “person liable to pay the duty” when excise goods are “released for consumption”, by virtue of reg. 6(1)(b), as the person “holding” excise goods at that time:

“10.

—(1) The person liable to pay the duty when excise goods are released for consumption by virtue of regulation 6(1)(b) (holding of excise goods outside a duty suspension arrangement) is the person holding the excise goods at that time.

(2)

Any other person involved in the holding of the excise goods is jointly and severally liable to pay the duty with the person specified in paragraph (1).”