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Explanatory note

Original text. Later amendments are not shown.

(This note is not part of the Regulations)

These Regulations provide that a person may not manufacture, purchase, acquire, own or be in possession of machinery designed for manufacturing tobacco products otherwise than in accordance with a licence.

Part 1 of the Regulations makes provision for commencement and definitions.

Part 2 of the Regulations provides:

  • that a person may not carry out a regulated activity otherwise than in accordance with a licence;

  • for exemptions from the requirement to have a licence in respect of tobacco machinery designed for the manual production of a single cigarette or cigar and in relation to the transportation of machinery on behalf of licensees;

  • that a regulatory activity is to manufacture, purchase, acquire, own or be in possession of an item of tobacco products manufacturing machinery.

Part 3 of the Regulations provides that the Commissioners:

  • can only grant a licence if they are satisfied that the applicant is a fit and proper person and will not use the machinery for the fraudalent evasion of duty charged on tobacco products;

  • may prescribe in a notice, and specify in a licence, conditions and restrictions to which a licence is subject;

  • may vary or revoke a licence at any time for reasonable cause.

Part 4 of the Regulations makes provision about the administrative procedures for the licence scheme, including:

  • that the Commissioners must prescribe the form, manner and content of applications for licences and applications for variation and renewals of licences;

  • making applications;

  • determining applications, including provision for when additional information is required;

  • granting and refusing applications, including the information the Commissioners need to provide.

Part 5 of the Regulations makes provision about penalties and forfeiture, in particular:

  • a person who contravenes the prohibition is liable to a penalty in the amount specified in section 9(2)(b) of the Finance Act 1994 and the machine is liable to forfeiture

  • the assessment of penalties and exceptions from liability to a penalty.

Part 6 of the Regulations provides for enforcement: certain provisions of the Customs and Excise Management Act 1979 have effect in relation to licensees as they have effect in relation to revenue traders.

Part 7 of the Regulations provides for review and appeal of decisions.

A Tax Information and Impact Note covering this instrument was published on 5 December 2016 alongside a Summary of Responses document entitled – licensing (or equivalent) of tobacco machinery. This has been updated as a result of changes to the impacts as a result of this instrument and is available on the website at https://www.gov.uk/government/publications/tobacco-duty-illicit-trade-protocol-licensing-of-tobacco-manufacturing-machinery/tobacco-duty-illicit-trade-protocol-licensing-of-tobacco-manufacturing-machinery