Explanatory note

These Regulations make miscellaneous amendments and modifications to secondary legislation relating to excise duties and are made to ensure the effective operation of the law applying to excise duties on the withdrawal of the United Kingdom (“UK”) from the European Union (“EU”).

Part 1 deals with the commencement of these regulations.

Part 2 suspends the effect of regulations 5 to 24 of the Tobacco Products (Traceability and Security Features) Regulations 2019 (S.I. 2019/594) (“the TSFR”). The TSFR implement EU requirements for an EU-wide track and trace system for certain tobacco products. This system will not function correctly on EU exit. The UK intends to introduce its own domestic track and trace system in the future. The provision states that the TSFR will not apply to acts or omissions under those Regulations after EU exit. Any outstanding compliance notice issued under regulation 22 of the TSFR will cease to have effect at that time.

Part 3 modifies two EU Decisions relating to motor fuels to reflect the withdrawal of the UK from the EU to address certain textual deficiencies and to address the fact that once the UK leaves the EU it would not be possible for the EU Council to extend the validity of these Decisions.

Part 4 amends, directly and indirectly, the Excise Goods (Holding, Movement and Duty Point) Regulations 2010 (S.I. 2010/593) (“HMDP 2010”). Regulation 4 amends regulation 30 of HMDP 2010 directly to ensure that registered consignors may move excise goods released to an authorised use procedure in duty suspension and makes a consequential amendment to regulation 9 of HMDP 2010. Regulation 5 amends the Excise Goods (Holding, Movement and Duty Point) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/13) to provide that movements of certain energy products from a place of importation to a tax warehouse or a place from where they will be exported from the United Kingdom are subject to Part 8 of HMDP 2010 and also makes other minor miscellaneous amendments. Regulation 6 is a consequential amendment to the Excise Duties (Miscellaneous Amendments) (EU Exit) (No. 3) Regulations 2019 (S.I. 2019/474).

Part 5 replaces a provision in the Excise Duties (Miscellaneous Amendments) (EU Exit) (No. 3) Regulations 2019 that had been made in anticipation of the UK leaving the EU on 29 March 2019. The new provision in regulation 7 makes a minor modification to the Tobacco Products Regulation 2001 (S.I. 2001/1712) for a 6 month period in the event that the UK leaves the EU without a deal.

This instrument will be covered by an overarching HMRC impact assessment (third edition) which will be published on the website at https://www.gov.uk/government/collections/customs-vat-and-excise-regulations-leaving-the-eu-with-no-deal.