Explanatory note

This Order, which comes into force on 1st September 2004, adjusts the liabilities to excise duty (and rights to rebate in respect of such duty) of the various products cited in the instrument. The duties affected are all chargeable by virtue of the Hydrocarbon Oil Duties Act 1979 (c. 5). The adjustments are all in the form of a deduction from the amount payable (or and addition to the amount of rebate allowable) of a specified percentage not exceeding 10 per cent.

Adjustments to rebates are dealt with by article 4. Adjustments of liabilities to duty are dealt with by articles 3 and 5.

The adjustments negate the effect of increases in the rates of duty on products listed in Tables A and B which are made by the Finance Act 2004 (c. 12) (“the Finance Act”) and which come into effect on 1^st September 2004. The result of the adjustments made is that, while the rates of duty (and rebate) are as set by the amendments made by the Finance Act, a person will be entitled to adjust the amount he is actually liable to pay (or allowed by way of rebate) by the amounts specified in this Order: he will be liable to pay the same amount as if the Finance Act amendments had not come into effect (for ease of reference and comprehension of effect, the figures in columns (B) and (D) of the Tables in the Order indicate the amounts payable (duty liability) or allowable (rebate) both before and after the adjustment is made).

A full regulatory impact assessment has not been produced for this instrument, as it has no impact on the costs of business, charities or voluntary bodies.