Finance (No.2) Act 1987

103 Consumption in port of goods transhipped for use as stores, etc.

(1) Subject to subsection (2) below and to any directions given by the Commissioners under section 61 of the [1979 c. 2.] Customs and Excise Management Act 1979, goods transhipped for use as stores on a ship which is not less than 40 tons register and which is to make a voyage to a country outside the United Kingdom may be used while the ship is in port without payment of duty.

(2) Subsection (1) above does not apply to—

(a) dutiable alcoholic liquor other than beer and cider; or

(b) tobacco products;

and the reference in subsection (1) above to a country outside the United Kingdom does not include a reference to the Isle of Man.

(3) In section 1(1) of the Customs and Excise Management Act 1979, at the end of the definition of “transit or transhipment” there shall be added “or transhipment of those goods for use as stores”.

(4) In subsection (1) of section 61 of that Act, after paragraph (a) there shall be added—

“(aa) as to the descriptions of vessel on which goods carried as stores may be used in port without payment of duty in accordance with section 103(1) of the Finance (N0. 2) Act 1987;

(ab) as to the quantity of any goods which may be carried as stores for use in port as mentioned in paragraph (aa) above and as to the time within which such goods or any specified quantities of them may be so used; and”;

and in paragraph (b) of that subsection after the words “paragraph (a)” there shall be inserted “or paragraph (aa)”.

(5) In subsection (5) of the said section 61 after the words “United Kingdom”, in the first place where they occur, there shall be inserted “or for use in port without payment of duty”.

(6) Subsections (1) and (2) above shall be construed as one with the [1979 c. 2.] Customs and Excise Management Act 1979.

(7) Notwithstanding the generality of section 24 of the [1983 c. 55.] Value Added Tax Act 1983 (application of customs and excise enactments in relation to value added tax), subsections (1) and (2) above are excluded from the enactments to which that section applies.