Explanatory note

These Regulations, which come into force on 1st September 2004, provide for the application to certain energy products (“special energy products”) of the Community-wide system of holding and movement of excise products under duty suspension arrangements. Provision is made in respect of how that system is to operate in the UK.

Regulation 2 defines certain terms used in these Regulations, such as “Community duty suspension arrangements”, “special energy product” and “occasional importer”.

Regulation 3 provides for the compulsory warehousing of Community imports of special energy products that are imported duty suspended, subject to special rules for certain types of Community imports.

Regulation 4 provides for the voluntary duty suspended warehousing of special energy products that are not chargeable with duty under the Oil Act.

Regulation 5 makes provision regarding how special energy products that are warehoused or subject to other duty suspension arrangements are to be treated while warehoused or under those arrangements. The provision includes treating the special energy products, while they are warehoused or subject to other duty suspension arrangements, as charged to duty under specified enactments.

Regulations 6 and 7 make consequential amendment to other warehousing regulations.

M1These Regulations and the other warehousing regulations that now apply to special energy products by virtue of the provision made in these Regulations, give effect to Article 20(1) of Council Directive 2003/96/EC (of 27th October 2003 restructuring the Community framework for the taxation of energy products and electricity) in respect the application of the Community-wide duty suspension system to special energy products. A transposition note for the directive is available at www.hmce.gov.uk.

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.