HMAG151601 | Excise duty points: excise goods found to be missing or deficient from a warehouse in 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 when excise goods are found to be missing or deficient from a warehouse in Northern Ireland. It is therefore important to read the NI HMDP regulations.

Where you find that excise goods are missing or deficient from a warehouse in Northern Ireland and a decision is made that the loss is not due to natural wastage or other legitimate reasons (in other words it is not an allowable loss), the goods are released for consumption under regulations 6(1)(a) and 7(1)(j), with an excise duty point arising under regulation 5.

Excise duty point

Where there is a release for consumption under regulations 6(1)(a) and 7(1)(j), an excise duty point arises under regulation 5. The excise duty point is the time when those goods were found to be deficient or missing (i.e. released for consumption) from the warehouse. Where you are unable to determine the actual time when those goods were released for consumption, then the excise duty point is the time when you discovered the deficiency in the warehouse.

Person/s liable to pay the duty

The person/s liable to pay the duty when excise goods are released for consumption under regulation 6(1)(a) and 7(1)(j) are shown in regulation 8.

Under regulation 8(1) the person liable to pay the duty is the authorised warehousekeeper any other person releasing the goods or on whose behalf the excise goods are released from the duty-suspension arrangement.

Where the goods are found to be missing or deficient from a warehouse the person liable to pay the duty will be the authorised warehousekeeper. Generally, where you believe that the goods have been stolen from an excise warehouse then the warehousekeeper is liable to pay the duty unless you are able to identify another person who stole the goods from the warehouse.

Under regulation 8(2) any other person involved in the irregular departure is jointly and severally liable to pay the duty with the person specified in regulation 8(1).

Circumstances when UK duty is not due

Where you are satisfied that the absence (or deficiency) of those goods is due to a legitimate cause, then UK duty is not due on those goods. This is by virtue of regulation 7(2)(b). You will find more information in notice 197.