Part X Duties and Drawbacks—General Provisions
General provisions relating to imported goods
119 Delivery of imported goods on giving of security for duty.
F241
Where it is impracticable immediately to ascertain whether any or what duty is payable in respect of any imported goods which are entered for home use F1or for free circulation, whether on importation or from warehouse F2or free zone, the Commissioners may, if they think fit and notwithstanding any other provision of the Customs and Excise Act 1979, allow those goods to be delivered upon the importer giving security by deposit of money or otherwise to their satisfaction for payment of any amount unpaid which may be payable by way of duty.
F32
The Commissioners may for the purposes of subsection (1) above treat goods as entered for home use notwithstanding that the entry does not contain all the particulars required for perfect entry if it contains as many of those particulars as are then known to the importer, and in that event the importer shall supply the remaining particulars as soon as may be to the Commissioners.
3
Where goods are allowed to be delivered under this section, the Commissioners shall, when they have determined the amount of duty which in their opinion is payable, give to the importer a notice specifying that amount.
4
On the giving of a notice under subsection (3) above the amount specified in the notice or, where any amount has been deposited under subsection (1) above, any difference between those amounts shall forthwith be paid or repaid as the case may require.
5
Subject to subsection (6) below, if the importer disputes the correctness of the amount specified in a notice given to him under subsection (3) above he may at any time within 3 months of the date of the notice make such a requirement for reference to arbitration or such an application to the court as is provided for by section 127 below, and that section shall have effect accordingly.
6
No requirement or application shall be made by virtue of subsection (5) above until any sum falling to be paid by the importer under subsection (4) above has been paid, and where any sum so falls to be paid no interest shall be paid under section 127(2) below in respect of any period before that sum is paid.
F41120 Regulations for determining origin of goods.
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121 Power to impose restrictions where duty depends on certain matters F49....
Where any question as to the duties of customs or excise chargeable on any imported goods depends on any matter F42... not reasonably ascertainable from an examination of the goods, and that question is not in law conclusively determined by the production of any certificate or other document, then, on the importation of those goods, the Commissioners may impose such conditions as they see fit for the prevention of abuse or the protection of the revenue (including conditions requiring security for the observance of any conditions so imposed).
F43122 Regulations where customs duty depends on use.
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123 Repayment of duty where goods returned or destroyed by importer.
1
Subject to such conditions as the Commissioners see fit to impose, where it is shown to the satisfaction of the Commissioners—
a
that goods were imported in pursuance of a contract of sale and that the description, quality, state or condition of the goods was not in accordance with the contract or that the goods were damaged in transit; and
b
that the importer with the consent of the seller either—
i
returned the goods unused to the seller F27and, if the export of the goods was required to be made in accordance with the applicable export provisions, the requirements were met; or
ii
destroyed the goods unused,
the importer shall be entitled to obtain from the Commissioners repayment of any F4excise duty paid on the importation of the goods.
2
Nothing in this section shall apply to goods imported on approval, or on sale or return, or on other similar terms.
124 Forfeiture for breach of certain conditions.
1
Where—
a
any imported goods have been relieved from customs or excise duty chargeable F28by reference to their importation or have been charged with duty at a reduced rate; and
b
any condition or other obligation required to be complied with in connection with the relief or with the charge of duty at that rate is not complied with,
the goods shall be liable to forfeiture.
2
The provisions of this section shall apply whether or not any undertaking F29, security or other guarantee has been given for compliance with the condition or obligation or for the payment of the duty payable apart therefrom, and the forfeiture of any goods under this section shall not affect any liability of any person who has given any such undertaking F29, security or other guarantee.
F40125 Valuation of goods for purpose of ad valorem duties.
C1C8126 Charge of excise duty on manufactured or composite imported articles.
1
Subject to subsections (2) to (4) below, if any imported goods contain as a part or ingredient thereof any article chargeable with excise duty, excise duty shall be chargeable on the goods in respect of each such article according to the quantity thereof appearing to the Commissioners to be used in the manufacture or preparation of the goods.
2
Where, in the opinion of the Treasury, it is necessary for the protection of the revenue, such imported goods shall be chargeable with the amount of excise duty with which they would be chargeable if they consisted wholly of the chargeable article or, if the goods contain more than one such article, of that one of the chargeable articles which will yield the highest amount of excise duty.
3
Schedule 2 to this Act shall have effect with respect to the excise duties to be charged, and the excise drawbacks to be allowed, on imported composite goods containing a dutiable part or ingredient and with respect to rebates and drawbacks of excise duties charged in accordance with that Schedule.
4
Subsections (1) and (2) above do not apply where other provision is made by any other enactment relating to excise duties on imported goods.
5
Any rebate which can be allowed by law on any article when separately charged shall be allowed in charging goods under subsection (1) or (2) above in respect of any quantity of that article used in the manufacture or preparation of the goods.
F5127. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F7 Deferred payment of excise duty on goods
127A Deferred payment of excise duty on goods.
1
The Commissioners may by regulations make provision for the payment F6(in accordance, where any requirement to pay the duty takes effect, with that requirement) of any excise duty on goods of a prescribed kind to be deferred, in prescribed cases, subject to such conditions or requirements as may be imposed—
a
by the regulations; or
b
where the regulations so provide, by the Commissioners.
2
Any duty payment of which is deferred under the regulations shall be treated, for prescribed purposes, as if it had been paid.
3
Where—
a
any excise duty to which an application for deferment of duty made under the regulations relates is payable on goods on their removal from an excise warehouse; and
b
the Commissioners are not satisfied—
i
that the conditions imposed under section 92(1) above in relation to the warehouse have been complied with by the occupier of the warehouse; or
ii
that the warehousing regulations made by virtue of section 93(2)(g) above have been complied with by the occupier or by the proprietor of the goods;
the Commissioners may, notwithstanding any provision of the regulations, refuse the application or refuse it in so far as it relates to those goods.
Nothing in this subsection shall be taken to prejudice the power of the Commissioners to prescribe the cases in which excise duty may be deferred.
4
Regulations under this section may make different provision for goods of different descriptions or for goods of the same description in different circumstances.
5
In this section “prescribed” means prescribed by regulations made under this section.
General provisions relating to charge of duty on and delivery of goods
128 Restriction of delivery of goods.
1
During any period not exceeding 3 months specified at any time by order of the Commissioners for the purposes of this section, the Commissioners may refuse to allow the removal for home use on payment of duty, or the sending out for home use after the charging of duty, of goods of any class or description chargeable with a duty of F8excise, notwithstanding payment of that duty, in quantities exceeding those which appear to the Commissioners to be reasonable in the circumstances.
2
Where the Commissioners have during any such period exercised their powers under this section with respect to goods of any class or description, then, in the case of any such goods which are removed or sent out for home use after the end of that period, the duties of F8excise and the rates thereof chargeable on those goods shall, notwithstanding any other provision of the customs and excise Acts relating to the determination of those duties and rates, be those in force at the date of the removal or sending out of the goods.
129 Power to remit or repay duty on denatured goods.
1
Subject to subsection (2) below, where any goods—
F30a
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b
have by reason of their state or condition ceased to be worth the full F31duty of excise chargeable thereon and have been denatured in such manner as the Commissioners may direct and in accordance with such conditions as they see fit to impose, the Commissioners may remit or repay the whole or part of any F31duty of excise chargeable or paid thereon, or waive repayment of the whole or part of any drawback paid on their warehousing, upon the delivery of the goods for use for such purposes as the Commissioners may allow.
F101A
The reference in subsection (1) above to goods which are F33chargeable with a duty of excise the requirement to pay which has not yet taken effect shall be construed as a reference to any goods which are warehoused or F34... to any goods at a time, before the excise duty point for those goods, when they are chargeable with such a duty.
2
Subsection (1) above does not apply in relation to spirits.
3
Where, whether under subsection (1) above or otherwise, any goods chargeable with duty have gone into home use after having been denatured by mixture with some other substance, any person who separates the goods from that other substance shall be guilty of an offence under this subsection and may be detained, and the goods shall be liable to forfeiture.
4
A person guilty of an offence under subsection (3) above shall be liable—
a
b
on conviction on indictment, to a penalty of any amount, or to imprisonment for a term not exceeding 2 years, or to both.
F355
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F44130 Power to remit or repay duty on goods lost or destroyed, etc.
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131 Enforcement of bond in respect of goods removed without payment of F50excise duty.
If any goods which have been lawfully permitted to be removed for any purpose without F45payment of excise duty are unlawfully taken from any F46... vehicle or place before that purpose is accomplished, the Commissioners may if they see fit enforce any bond given in respect thereof notwithstanding that any time prescribed in the bond for accomplishing that purpose has not expired.
Drawback, allowances, duties, etc.—general
132 Extension of drawback.
1
Without prejudice to any other provision of the Customs and Excise Acts 1979 or any other Act, where drawback is allowable on the shipment of any goods as stores, the like drawback shall, subject to such conditions and restrictions as the Commissioners see fit to impose, be allowed on the warehousing in an excise warehouse of those goods for use as stores.
2
Without prejudice to any other provision of the Customs and Excise Acts 1979 or any other Act, where drawback would be payable on the exportation of any goods, or on the warehousing of any goods for exportation, then, subject to such conditions and restrictions as the Commissioners see fit, the like drawback shall be payable on the shipment of any such goods as stores or, as the case may be, on their warehousing in an excise warehouse for use as stores.
133 General provisions as to claims for drawback.
F39A1
This section applies in relation to any claim for drawback for the purposes of any excise duty.
1
Any claim for drawback shall be made in such form and manner and contain such particulars as the Commissioners may direct.
2
Where drawback has been claimed in the case of any goods F11subsections (4) to (6) below shall apply in relation to the claim.
F123
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4
No drawback shall be paid until the person entitled thereto or his agent has made a declaration in such form and manner and containing such particulars as the Commissioners may direct that the conditions on which the drawback is payable have been fulfilled.
5
The Commissioners may require any person who has been concerned at any stage with the goods or article—
a
to furnish such information as may be reasonably necessary to enable the Commissioners to determine whether duty has been duly paid and not drawn back and for enabling a calculation to be made of the amount of drawback payable; and
b
to produce any book of account or other document of whatever nature relating to the goods or article.
6
If any person fails to comply with any requirement made under subsection (5) above, he shall be liable on summary conviction to a penalty of F13level 3 on the standard scale.
134C2 Drawback and allowance on goods damaged or destroyed after shipment.
F48A1
This section applies only for the purposes of excise duty.
1
Where it is proved to the satisfaction of the Commissioners that any goods after being duly shipped for exportation have been destroyed by accident on board the exporting ship or aircraft, any amount payable in respect of the goods by way of drawback, allowance or repayment of duty shall be payable in the same manner as if the goods had been exported to their destination.
2
Where it is proved to the satisfaction of the Commissioners that any goods, after being duly shipped for exportation, have been materially damaged by accident on board the exporting ship or aircraft, and the goods are with the consent of and in accordance with any conditions imposed by the Commissioners relanded or unloaded again in or brought back into the United Kingdom and either abandoned to the Commissioners or destroyed, any amount payable in respect of the goods by way of drawback, allowance or repayment of duty shall be paid as if they had been duly exported and not so relanded, unloaded or brought back.
3
Notwithstanding any provision of the Customs and Excise Acts 1979 or any other Act relating to the reimportation of exported goods, the person to whom any amount is payable or has been paid under subsection (2) above shall not be required to pay any duty in respect of any goods relanded, unloaded or brought back under that subsection.
135 Time limit on payment of drawback or allowance.
No payment shall be made in respect of any drawback or allowance F47for the purposes of any excise duty unless the debenture or other document authorising payment is presented for payment within 2 years from the date of the event on the happening of which the drawback or allowance became payable.
136F14 Offences in connection with claims for drawback, etc.
1
If any person, with intent to defraud Her Majesty, obtains or attempts to obtain, or does anything whereby there might be obtained by any person, any amount by way of drawback, allowance, remission or repayment of, or any rebate from, any duty in respect of any goods which—
a
is not lawfully payable or allowable in respect thereof; or
b
is greater than the amount so payable or allowable,
he shall be guilty of an offence under this subsection.
1A
If any person, without such intent as is mentioned in subsection (1) above, does any of the things there mentioned, he shall be guilty of an offence under this subsection.
2
A person guilty of an offence under subsection (1) above shall be liable—
a
b
on conviction on indictment, to a penalty of any amount, or to imprisonment for a term not exceeding 7 years, or to both;
and a person guilty of an offence under subsection (1A) above shall be liable on summary conviction to a penalty of level 3 on the standard scale or three times the amount which was or might have been improperly obtained or allowed, whichever is the greater.
3
Any goods in respect of which an offence under subsection (1) F15or (1A) above is committed shall be liable to forfeiture; but in the case of a claim for drawback, the Commissioners may, if they see fit, instead of seizing the goods either refuse to allow any drawback thereon or allow only such drawback as they consider proper.
4
Without prejudice to the foregoing provisions of this section, if, in the case of any goods upon which a claim for drawback, allowance, remission or repayment of duty has been made, it is found that those goods do not correspond with any F36any declaration made thereof in connection with that claim, the goods shall be liable to forfeiture and any person by whom any such F36any declaration or claim was made shall be liable on summary conviction to a penalty of three times the amount claimed or F16level 3 on the standard scale, whichever is the greater.
5
Subsection (4) above applies in the case of any goods upon which a claim for drawback, allowance, remission or repayment of duty has been made where it is found that the goods, if sold for home use, would realise less than the amount claimed as it applies where the finding specified in that subsection is made except that it does not apply by virtue of this subsection to any claim under—
a
section 123 or 134(2) above; or
b
section 46, 61 or 64 of the M1Alcoholic Liquor Duties Act 1979 (remission or repayment of duty on certain spoilt liquors).
F266
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137 Recovery of F51excise duties and calculation of F51excise duties, drawbacks, etc.
C31
Without prejudice to any other provision of the Customs and Excise Acts 1979, any amount due by way of F25... excise duty may be recovered as a debt due to the Crown.
2
F37Any excise duty or drawback, allowance or rebate F38in relation to excise duty the rate of which is expressed by reference to a specified quantity or weight of any goods shall, subject to subsection (3) below, be chargeable or allowable on any fraction of that quantity or weight of the goods, and the amount payable or allowable on any such fraction shall be calculated proportionately.
3
The Commissioners may for the purposes of subsection (2) above determine the fractions to be taken into account in the case of any weight or quantity.
F204
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C4137AF17 Recovery of overpaid excise duty.
C7C51
Where a person pays to the Commissioners an amount by way of excise duty which is not due to them, the Commissioners are liable to repay that amount.
2
The Commissioners shall not be required to make any such repayment unless a claim is made to them in such form, and supported by such documentary evidence, as may be prescribed by them by regulations; and regulations under this subsection may make different provision for different cases.
C63
It is a defence to a claim for repayment that the repayment would unjustly enrich the claimant.
F184
The Commissioners shall not be liable, on a claim made under this section, to repay any amount paid to them more than F214 years before the making of the claim.
5
Except as provided by this section the Commissioners are not liable to repay an amount paid to them by way of excise duty by reason of the fact that it was not due to them.
F196
This section does not apply in a case where the Commissioners are—
a
entitled to pay an amount under Part 1 of Schedule 3 to the Finance Act 2001, or
b
required to repay an amount under Part 3 of that Schedule.
S. 127A inserted by Finance Act 1983 (c. 28, SIF 40:1), s. 6