FINANCE BILL 2000
CLAUSE 27: SECURITY FOR CUSTOMS AND EXCISE
SUMMARY
1. This clause extends the requirement for security to cover liabilities which may become due to tax authorities in other Member States. This fully implements a requirement in Directive 92/12/EEC. The change takes effect after Royal Assent.
DETAILS OF THE CLAUSE
2. Subsection 1(1) states that the clause amends Section 157 of the Customs and Excise Management Act 1979 .
3. Subsection 1(2) amends subsection (1) of Section 157 of the Customs and Excise Management Act 1979 by allowing the Commissioners to require additional security to that which may be in place already and extending the nature of the security to include guarantees.
4. Subsection 1(3) further amends subsection (1) of Section 157 of the Customs and Excise Management Act 1979 with the insertion of new subsection (1A);this defines the extent of any security to include excise duty charged under the law of member States other than the United Kingdom on manufactured tobacco, alcohol or alcoholic beverages or mineral oils. The final sentence explains that the products listed have the same meaning as in Council Directive 92/12/EEC.
5. Subsection 1(4) amends subsection (2) of Section 157 of the Customs and Excise Management Act 1979 by extending the nature of the security to guarantees and other forms of security.
6. Subsection 1(5) amends paragraph (a) of subsection (2) of Section 157 of the Customs and Excise Management Act 1979 by allowing security to be taken out on behalf of other Member State tax authorities.
7. Subsection 1(6) further amends subsection (2) of Section 157 of the Customs and Excise Management Act 1979 by confirming that any excise duty charged as mentioned in new subsection (1A) is an assigned matter.
BACKGROUND
8. The change has been made by the Government to fulfil the UK's obligation under Community Directive 92/12/EEC. The Directive requires security to cover any duty liability on excise goods moved between Member States.
9. While UK industry already provides guarantees covering such liabilities, UK law does not fully reflect the requirements of the Directive. The change allows the UK to fulfil its obligations and removes the risk of infraction proceedings for failing to implement the Directive in full.
10. The measure will not have any input on current trade practices.