HMAG152901 - Excise duty points: contravention of a relief from payment of duty 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 where there is a failure by any person to comply with any condition subject to which any relief from payment of duty in Northern Ireland applies. This is a stand-alone excise duty point under the NI HMDP regulations. The conditions of the relief are not prescribed in the NI HMDP regulations but are covered in other legislative provisions or notices. For example, where the excise goods are being delivered for shipment as stores but are not put to the correct purpose.

This does not apply in cases where the warehousekeeper fails to remove excise goods, which are subject to a relief from excise duty, from the warehouse in a lawful manner. For example, where a warehousekeeper does not follow the correct procedure to remove excise goods for use as ships stores. In this case the goods are considered to have been unlawfully removed from the warehouse and action should be taken on the earlier duty point, even if there is has been a further breach of the relief conditions.   

Excise duty point

Where there is a failure to comply with any conditions subject to which any relief from the payment of duty applies, an excise duty point arises under regulation 18(1). The time of the duty point is the time of that failure to comply with the conditions of the relief.

Person liable to pay the duty

The person liable to pay the duty when there is an excise duty point under regulation 18 is shown in regulation 18(2). That is the person who is holding the excise goods at the excise duty point. This will normally mean the person who is/was physically holding the goods at the excise duty point. 

There is no joint and several liability associated with regulation 18(2).