HCOTEG60500 - Movements between Northern Ireland and EU Countries: Law

The principal rules governing the movement of oils between EU Countries and Northern Ireland is EU Directive 2008/118 (General arrangements for excise duty), and is recognised by Article 8 and Annex 3 of the Northern Ireland Protocol. It is transposed into the UK’s domestic legislation by the Excise Goods (Holding, Movement and Duty Point) Regulations 2010. The Energy Directive (EPD) (EC) No 2003/96, and the UK Regulations implementing it are also relevent.

Directive 2008/118

This Directive forms the basis for:

  • the electronic system (EMCS) for the holding and movement of goods liable to excise duties
  • the tax warehouse and Registered Consignors and Consignees system for the movement of goods between Nothern Ireland and EU Countries
  • the rules on mutual assistance with regard to movements between Nothern Ireland and EU Countires

The full body of the text which can be found using Lex-Nex on the website, establishes the requirements for the holding & movement of excise goods and the definition of authorised warehouse-keeper, tax-warehouse, suspension arrangements and registered traders.

Excise Goods (Holding, Movement and Duty Point) Regulations 2010 SI 2010/593 implements EU Directive 2008/118.

These regulations build on the earlier holding and movement Directive 92/12 and the regulations that preceded them, which were designed to permit the free movement of excise goods with no customs formalities at frontiers, enabling UK exporters and importers to continue with intra- community trade from 1 January 1993. They ceased to relato to GB import and exoprt on 1 January 2021 when th UK left the EU, but they continue to apply to movements between the EU and Norhtern Ireland under teh terms of the Norhtern Ireland Protocol.

They fix the duty point for EU movements where there has been an irregularity, for example where an eAD report of receipt has not been returned to the consignor within 5 days of the goods having been received.

Council Directive (EC) No 2003/96, 2003 (Energy Products Directive)

‘on the restructuring of the Community Framework for the taxation of Energy Products & Electricity’.

ThisDirective restructured taxation on energy products and on electricity, including the use of mineral oils. Annexe II deals with reduced rates of taxation and exemptions from such taxation referred to in Article 18(1).

The Directive covers the following issues (previously contained in Directives 92/81 and 92/82/EEC) but, following the UK leaving the EU on 1 January 2021, it is now only relevant for movements between Northern Ireland and EU Countries, as set ou within the Northern Ireland Protocol. It;

  • Restructures the EU framework for the taxation of energy products
  • Clarifies what products are subject to control as oil
  • Defines the circumstances in which relief from excise duty can be allowed
  • Covers the procedure known as Standard Temperature Accounting (STA)
  • The minimum rates of duty for those who have been permitted to defer introduction of these rates

The full body of the text can be found using Lex-Nex on the website and in the Purple Book 3B.