HMAG151901 | Excise duty points: irregular dispatch of excise goods by a registered consignor in Northern Ireland to an EU member state

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 the excise goods have been imported into Northern Ireland under the correct customs procedure and the goods have been correctly declared to free circulation and excise duty-suspension. In such cases, the duty-suspended movement can only be started by a registered consignor in Northern Ireland.

However, the registered consignor fails to consign the excise goods under duty-suspension arrangements to a correct destination under regulation 37(b) or fails to ensure the goods are moved in accordance with the conditions prescribed in regulation 39(1).

The excise goods can only be consigned to:

• a warehouse approved in relation to excise goods of that class or description

• a registered consignee (but not Northern Ireland registered consignee) who has been registered in relation to excise goods of that class or description

• a place from where they will leave the territory of Northern Ireland or the EU

• an exempt consignee where the goods are dispatched from Northern Ireland to an EU Member State or are dispatched from an EU Member State in Northern Ireland

• a customs office of exit ….

The excise goods may not be moved under duty-suspension arrangements unless:

• there is a movement guarantee in place, provided by someone with an approved connection with the goods, and

• the procedures in Part 6 of NI HMDP are complied with.

This section also applies in cases where it later transpires that the movement guarantee recorded on EMCS or Fallback document for a particular duty-suspended movement was not valid. For example, if the person shown as providing the movement guarantee was not eligible to provide the guarantee or is able to demonstrate that they did not give their permission for their guarantee to be used for that movement.

Where there is a failure to comply with these provisions, the excise goods are released for consumption under regulations 6(1)(a) and 7(1)(g), 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)(g), an excise duty point arises under regulation 5. The excise duty point is the time when the goods leave the duty-suspension arrangement. In most cases this will be the time when the movement is started by the registered consignor.

Person/s liable to pay the duty

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

Under regulation 8(1) the person liable to pay the duty is any other person releasing the excise goods or on whose behalf the excise goods are released from the duty-suspension arrangement. Where the movement has been started by a registered consignor, the person you would consider liable is the person releasing the goods or on whose behalf the goods are released from the duty-suspension arrangement. In most cases this would be the registered consignor.

There is no joint and several liability provision in this case.