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We understand that many traders still do not fully appreciate the implication of allowing their movement guarantee to be used to cover duty suspended movements.
The person who provides the guarantee is always primarily liable for the excise duty on that movement if there is an irregularity.
This applies whether or not the person who provides the guarantee is, in any way, culpable. The prosecution of another person for fraud in no way affects this position.
Therefore, before providing a movement guarantee, you should carefully consider the potentially serious implications of doing so:
The warehousekeeper of despatch is responsible under the Excise Warehousing (etc) Regulations 1988 regulation 15(c) for ensuring that security is provided for each movement. This security must be acceptable to the Commissioners. If, as a warehousekeeper, you allow goods to be removed from your warehouse other than under cover of an acceptable guarantee, the movement is not legitimate, and you will be liable for any excise duty due.
The Accompanying Administrative Document (AAD) is required for excise purposes, under Articles 18 and 19 of Council Directive 92/12 and in accordance with Commission Regulation (EEC) No 2719/92.
The notes for completion of the AAD make it clear that all of the boxes must be completed accurately. A copy AAD form and Explanatory Notes can be found in Notice 197, section 92.
You must follow the instructions on the reverse of the form.
Section 5 of the Excise goods (Accompanying Documents) Regulations 2002 specifies that goods removed in duty suspense from a UK warehouse must at all times be accompanied by an AAD that complies with the Community provisions. Any contravention or failure to comply with the conditions or restrictions imposed by or under these Regulations may render the goods liable to forfeiture and/or civil penalties.
In particular, we would draw your attention to the following notes on the back of the AAD:
“Box 9. Transporter: the name and address of the person responsible for arranging the first movement, if different form the consignor.
Box 11. Other transport details: any additional information, eg name of any subsequent transporter, means of transport, registration number of means of transport, and the number, type and identification of any commercial seals.”
Therefore, other transport details in Box 11 must include the registration number of the vehicle which collects the goods from the warehouse.
In Excise News 04/02 we told you of our intention to move wholly to electronic copies - sending by email to everyone who has provided addresses, and to post a copy on our website.
We have had positive replies from over 200 of you. This is the last Excise News to be sent out in hard copy.
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We welcome any comments you have about this issue of Excise News or other matters that interest you.
Excise News is published on an occasional basis by the Holding and Movement team in Tax Practice.