The Tobacco Products Regulations 2001

Explanatory Note

(This note is not part of the Regulations)

These Regulations come into force on 1st June 2001.

Purpose of the Regulations

These Regulations provide the machinery for administering the excise duty on tobacco products charged by section 2 of the Tobacco Products Duty Act 1979 (c. 7). They also regulate the circumstances in which tobacco products are required to carry fiscal marks and related matters. A Regulatory Impact Assessment on the fiscal marking of tobacco products was published in April 2000 and is available from—

HM Customs & Excise

Tax Practice—Excise Social Regimes

Alcohol & Tobacco

3W Ralli Quays

3 Stanley Street

Salford M60 9LA

The Regulations implement Council Directive 92/12/EEC (OJ No. L76, 23.3.1992, p.4) (as amended) and Council Directive 95/59/EC (OJ No. L291, 6.12.1995, p.40) (as amended). They have been notified to the European Commission and the other member States in accordance with Directive 98/34/EC of the European Parliament and of the Council (OJ No. L204, 21.7.1998, p.37) (as amended).

These Regulations replace the Tobacco Products Regulations 1979 (S.I. 1979/904). The principal changes introduced by these Regulations are:

(a) to define the tobacco products which must carry the fiscal mark and the circumstances in which the mark is required;

(b) to allow the Commissioners discretion in the registration of tobacco factories and all registered stores;

(c) to extend the requirement for formal notice of revocation to all registered tobacco premises;

(d) to allow imported tobacco products to be received into registered stores;

(e) to provide for certain requirements (for example conditions of registration) to be imposed by the Commissioners;

(f) to restrict the repayment of duty to tobacco products that are returned to registered premises; and

(g) to remove the relief from duty on tobacco products manufactured from home grown tobacco that was afforded by the Tobacco Products Regulations 1979.

Content of the Regulations

Regulation 1 contains the citation and commencement.

Regulation 2 revokes the Tobacco Products Regulations 1979 and subsequent amending Regulations.

Regulation 3 defines certain terms used in the Regulations.

Regulation 4 provides for the registration of tobacco factories and forbids the manufacture of tobacco products, except for the purposes of research or experiment, in premises other than registered factories.

Regulation 5 provides for the registration of premises for the safe storage of tobacco products. Such premises are termed “registered stores”.

Regulation 6 deals with the revocation of premises' registrations.

Regulation 7 requires notice to be given of the opening times for registered premises. It also requires notice of changes to registered premises and allows the Commissioners to impose, in a notice, further requirements on the occupiers of registered premises.

Regulation 8 allows imported tobacco products to be received into registered stores without payment of duty. It also covers the identification, delivery up for examination, and repacking of tobacco products in registered stores.

Regulation 9 deals with the removal of tobacco products from registered premises and sets time limits for the removal of tobacco products from registered factories. It also provides for the time of removal for duty purposes, in the afternoon of the day of a duty increase, to be different from the actual time of removal so that tobacco products bear duty at the higher rate.

Regulation 10 is concerned with “electronic removal”.

Regulation 11 provides for the removal of tobacco refuse from registered premises under certain circumstances.

Regulation 12 lists the excise duty points for tobacco products.

Regulation 13 lists the persons liable to pay the duty at the excise duty point.

Regulation 14 is concerned with when the duty must be paid and the point at which the weight of tobacco products, except cigarettes, is determined for the purposes of calculating the duty due on them. It also requires that manufacturers keep a “Production Account”.

Regulation 15 requires that manufacturers and importers provide certain brand and price details of tobacco products. It also requires the notification of any deficiencies of tobacco products in registered premises.

Regulation 16 is concerned with financial security (bonds, guarantees etc.) for the duty on tobacco products in registered premises.

Regulation 17 is concerned with payment days in the case of duty deferment.

Regulation 18 is concerned with the application and approval procedures for duty deferment.

Regulation 19 is concerned with the payment of duty where duty deferment arrangements apply.

Regulation 20 provides for returns to be made in accordance with the Commissioners' requirements.

Regulation 21 is concerned with fiscal marks and defines the “specified tobacco products” that may be required to carry a fiscal mark.

Regulation 22 stipulates when “specified tobacco products” are required to carry a fiscal mark and requires that the products in question be packaged in packets bearing a fiscal mark.

Regulation 23 lists the circumstances when “specified tobacco products” are not required to carry a fiscal mark and must not carry a fiscal mark.

Regulation 24 lists the circumstances under which “specified tobacco products” bearing a fiscal mark may be removed from registered premises or excise warehouses without payment of duty. It also deals with restrictions on removal to home use.

Regulation 25 details the circumstances under which a person who possesses, transports etc. unmarked product will not be guilty of the offence laid down in section 8G(4) of the Tobacco Products Duty Act 1979 (possession and sale etc. of unmarked tobacco).

Regulation 26 allows for the credit of duty, in certain circumstances, on tobacco products returned to registered premises and requires the destruction or obliteration of any fiscal marks when duty drawback is claimed.

Regulation 27 amends the Excise Warehousing (Etc.) Regulations 1988 (S.I. 1988/809).

Regulation 28 amends the Excise Goods (Holding, Movement, Warehousing and REDS) Regulations 1992 (S.I. 1992/3135) and, in relation to most tobacco products, disapplies Part II (determination of the duty) and Part III (payment of the duty) of those Regulations. Both Parts continue to apply to tobacco products in excise warehouses and Part III also continues to apply in the case of UK distance selling arrangements.