HMAG70600 - Importing Excise Goods: excise duty liability
The person(s) liable to pay the excise duty when a duty point occurs under regulation 6(1)(d) is set out in regulation 12 of HMDP:
12.—(1) The person liable to pay the duty when excise goods are released for consumption by virtue of regulation 6(1)(d) (importation of excise goods) is the person who declares the excise goods or on whose behalf they are declared upon importation.
(2) In the case of an irregular importation any person involved in the importation is liable to pay the duty.
(3) Where more than one person is involved in the irregular importation, each person is jointly and severally liable to pay the duty.
A decision will need to be made about who is liable to pay the excise duty:
- Under regulation 12(1), the liability falls upon the person who declares the excise goods or on whose behalf the goods are declared upon importation. This will usually be either the import agent or the importer of the goods.
This covers scenarios where a customs declaration has been made and accepted by HMRC and the correct customs process has been followed.
- Under regulation 12(2), the liability falls upon the main person involved in an irregular importation and regulation 12(3) provides a joint and several liability when more than one person is involved. This could be the importer, the import agent, the haulier and/or the owner of the goods.
This covers scenarios where the goods have been imported, but the correct customs processes have not been followed.
Identifying an irregular importation
When a trader does not fulfil their obligations in relation to the customs processes required when importing goods, this is deemed to be an irregular importation. This may apply when the customs declaration is incorrect or when the correct process for making a customs declaration has not been followed.
When deciding whether an importation is irregular or not, the specifics of each case must be considered. For example, an error that does not materially alter the declaration may not always invalidate the declaration.
Notifying someone of their liability
Where a customs debt is incurred on goods imported into GB, a C18 Post Clearance Demand Notice may be issued for the customs duty and/or import VAT that is due. If those goods are also liable to excise duty, an assessment for the excise duty element may also be notified on the same C18. This is provided that:
- the person liable to pay the customs duty and/or import VAT (the customs debtor) is also the person liable to pay the excise duty, and
- the notification makes it clear that an assessment to excise duty has been made and explains the reason for that assessment.
If the person liable to pay the customs duty and/or import VAT is different from the person liable to pay the excise duty, then the customs duty and/or import VAT should be notified on a C18 and the excise duty should be notified separately on an EX601 in the normal way.
Further advice on notifying assessments to any person(s) liable can be found in the Excise Assessments Interim Guidance (EAIG).
Examples
The following table is provided for illustrative purposes only. It is intended as a guide only and each case must be considered on its own merit.
NB. If the irregularity is identified whilst the goods are still located at a port, it’s important to consider the ‘Dansk ruling’ because an excise duty point cannot occur until the goods have passed the first customs office.
| Scenario | Regulation 12 HMDP | Person(s) liable |
|---|---|---|
| A correct customs declaration has been made and the trader has complied with the customs and excise obligations (goods ‘released for consumption’ upon importation) | 12(1) | the person who declares the excise goods or on whose behalf they are declared upon importation |
| A correct customs declaration has been made and the trader has complied with the customs procedure declaring the goods to excise duty suspension but an eAD has not been submitted on EMCS | 12(1) | the person who declares the excise goods or on whose behalf they are declared upon importation |
| A customs declaration that is not permitted for excise goods imported as freight has been made (i.e. EIDR or a declaration by conduct) | 12(2) | any person involved in the importation is liable to pay the duty |
| A customs declaration has been made for a consignment of goods but makes no reference to the excise goods contained in that consignment | 12(2) | any person involved in the importation is liable to pay the duty |
| A customs declaration has been made but the quantity of excise goods in the consignment has been understated | 12(2) | any person involved in the importation is liable to pay the duty |
| A customs declaration has been made but it relates to different excise goods to those contained in the consignment | 12(2) | any person involved in the importation is liable to pay the duty |
| Excise goods are found inland with a customs declaration to free circulation and home use but the excise duty has not been correctly accounted for (e.g. the customs declaration tax lines have been overridden with an incorrect or zero amount of excise duty) | 12(2) | any person involved in the importation is liable to pay the duty |
| Excise goods are held in a customs special procedure (e.g. customs warehousing or transit) and that procedure is breached resulting in the goods being released from the customs special procedure | 12(2) | any person involved in the importation is liable to pay the duty |
| No customs declaration has been made for the goods (regardless of whether the excise duty has subsequently been paid) | 12(2) | any person involved in the importation is liable to pay the duty |
| No customs declaration has been made but a valid eAD has been submitted on EMCS for the goods | 12(2) | any person involved in the importation is liable to pay the duty |
Where regulation 12(2) applies, consideration also needs to be given as to whether anyone else was involved in the irregular importation and has a joint and several liability under regulation 12(3). In these circumstances, the involvement by everyone considered to be liable to pay the duty will need to be clearly demonstrated.When considering a liability under regulation 12(2) for an irregular importation, the ‘any person involved in the importation’ can include the person who declares the excise goods or on whose behalf the goods are declared upon importation.