Finance (No. 2) Act 1992

Abolition of fiscal frontiers etc.

1Powers to fix excise duty point

(1)Subject to the following provisions of this section, the Commissioners may by regulations make provision, in relation to any duties of excise on goods, for fixing the time when the requirement to pay any duty with which goods become chargeable is to take effect (“the excise duty point”).

(2)Where regulations under this section fix an excise duty point for any goods, the rate of duty for the time being in force at that point shall be the rate used for determining the amount of duty to be paid in pursuance of the requirement that takes effect at that point.

(3)Regulations under this section may provide for the excise duty point for any goods to be such of the following times as may be prescribed in relation to the circumstances of the case, that is to say—

(a)the time when the goods become chargeable with the duty in question;

(b)the time when there is a contravention of any prescribed requirements relating to any suspension arrangements applying to the goods;

(c)the time when the duty on the goods ceases, in the prescribed manner, to be suspended in accordance with any such arrangements;

(d)the time when there is a contravention of any prescribed condition subject to which any relief has been conferred in relation to the goods;

(e)such time after the time which, in accordance with regulations made by virtue of any of the preceding paragraphs, would otherwise be the excise duty point for those goods as may be prescribed;

and regulations made by virtue of any of paragraphs (b) to (e) above may define a time by reference to whether or not at that time the Commissioners have been satisfied as to any matter.

(4)Where regulations under this section prescribe an excise duty point for any goods, such regulations may also make provision—

(a)specifying the person or persons on whom the liability to pay duty on the goods is to fall at the excise duty point (being the person or persons having the prescribed connection with the goods at that point or at such other time, falling no earlier than when the goods become chargeable with the duty, as may be prescribed); and

(b)where more than one person is to be liable to pay the duty, specifying whether the liability is to be both joint and several.

(5)Schedule 1 to this Act (which contains minor and consequential amendments and savings for purposes connected with the other provision made by this section) shall have effect.

(6)The power of the Commissioners to make regulations under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament and shall include power—

(a)to make different provision for different cases, including different provision for different duties and different goods; and

(b)to make such incidental, supplemental, consequential and transitional provision as the Commissioners think necessary or expedient.

(7)In this section—

• “the Commissioners” means the Commissioners of Customs and Excise;

• “contravention” includes a failure to comply;

• “customs and excise Acts” and “goods” have the same meanings as in the [1979 c. 2.] Customs and Excise Management Act 1979; and

• “prescribed” means prescribed by regulations under this section;

and references in this section to suspension arrangements are references to any provision made by or under the customs and excise Acts for enabling goods to be held or moved without payment of duty or any provision made by or under those Acts in connection with any provision enabling goods to be so held or moved.

(8)This section and Schedule 1 to this Act shall come into force on such day as the Commissioners may by order made by statutory instrument appoint, and different days may be appointed under this subsection for different provisions and for different purposes.

2Power to provide for drawback of excise duty

(1)Subject to the following provisions of this section, the Commissioners may, in relation to any duties of excise, by regulations make provision conferring an entitlement to drawback of duty in prescribed cases where the Commissioners are satisfied that goods chargeable with duty have not been, and will not be, consumed in the United Kingdom.

(2)The power of the Commissioners to make regulations under this section shall include power—

(a)to provide for, or for the imposition of, the conditions to which an entitlement to drawback under the regulations is to be subject;

(b)to provide for the determination of the person on whom any such entitlement is conferred;

(c)to make different provision for different cases, including different provision for different duties and different goods; and

(d)to make such incidental, supplemental, consequential and transitional provision as the Commissioners think necessary or expedient.

(3)Without prejudice to the generality of subsection (2)(d) above, the power of the Commissioners to make regulations under this section shall include power, in relation to any drawback of duty to which any person is entitled by virtue of regulations under this section, to provide—

(a)for entitlement to the drawback to be cancelled at any time after it has been conferred if there is a contravention of any conditions to which it is subject or in such other circumstances as may be prescribed; and

(b)for such persons as may be prescribed to be liable to the Commissioners for sums paid or credited to any person in respect of any drawback that has been cancelled in accordance with any such regulations.

(4)The power of the Commissioners to make regulations under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

(5)In this section—

• “the Commissioners” means the Commissioners of Customs and Excise;

• “contravention” includes a failure to comply;

• “goods” has the same meaning as in the [1979 c. 2.] Customs and Excise Management Act 1979; and

• “prescribed” means prescribed by regulations under this section.

(6)This section shall come into force on such day as the Commissioners may by order made by statutory instrument appoint, and different days may be appointed under this subsection for different provisions and for different purposes.

3Protection of revenues derived from excise duties

(1)Schedule 2 to this Act (which makes additional provision for purposes connected with the protection of the revenues derived from excise duties) shall have effect.

(2)This section and Schedule 2 to this Act shall come into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint, and different days may be appointed under this subsection for different provisions and for different purposes.

4Enforcement powers

(1)Except in a case falling within subsection (2) below, the powers to which this section applies shall not be exercisable in relation to any person or thing entering or leaving the United Kingdom so as to prevent, restrict or delay the movement of that person or thing between different member States.

(2)The cases in which a power to which this section applies may be exercised as mentioned in subsection (1) above are those where it appears to the person on whom the power is conferred that there are reasonable grounds for believing that the movement in question is not in fact between different member States or that it is necessary to exercise the power for purposes connected with—

(a)securing the collection of any Community customs duty or giving effect to any Community legislation relating to any such duty;

(b)the enforcement of any prohibition or restriction for the time being in force by virtue of any Community legislation with respect to the movement of goods into or out of the member States; or

(c)the enforcement of any prohibition or restriction for the time being in force by virtue of any enactment with respect to the importation or exportation of goods into or out of the United Kingdom.

(3)Subject to subsection (4) below, this section applies to any power which is conferred on the Commissioners of Customs and Excise or any officer or constable under any of the following provisions of the [1979 c. 2.] Customs and Excise Management Act 1979, that is to say—

(a)section 21 (control of movement of aircraft into and out of the United Kingdom);

(b)section 26 (power to regulate movement by land into and out of Northern Ireland);

(c)section 27 (officers' powers of boarding);

(d)section 28 (officers' powers of access);

(e)section 29 (officers' powers to detain ships);

(f)section 34 (power to prevent flight of aircraft);

(g)section 78 (questions as to baggage of person entering or leaving the United Kingdom);

(h)section 164 (powers of search).

(4)The Treasury may by order made by statutory instrument add any power conferred by any enactment contained in the customs and excise Acts to the powers to which this section applies; and a statutory instrument containing an order under this subsection shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(5)In this section—

• “Community customs duty” includes any agricultural levy of the Economic Community; and

• “the customs and excise Acts” and “goods” have the same meanings as in the [1979 c. 2.] Customs and Excise Management Act 1979;

and for the purposes of this section a power shall be taken to be exercised otherwise than in relation to a person or thing entering or leaving the United Kingdom in any case where the power is exercisable irrespective of whether the person or thing in question is entering or leaving the United Kingdom.

(6)This section shall come into force on 1st January 1993.

5Controls of persons entering the United Kingdom

(1)In section 78 of the Customs and Excise Management Act 1979 (controls of persons entering or leaving the United Kingdom), after subsection (2) there shall be inserted the following subsection —

“(2A)Subject to subsection (1A) above, where the journey of a person arriving by air in the United Kingdom is continued or resumed by air to a destination in the United Kingdom which is not the place where he is regarded for the purposes of this section as entering the United Kingdom, subsections (1) and (2) above shall apply in relation to that person on his arrival at that destination as they apply in relation to a person entering the United Kingdom.”

(2)This section shall come into force on 1st January 1993.