HCOTEG60500 - Intra-EU Movements: Law

The principal law governing the EU movement of oils is Council Directive 92/12/EEC Holding and Movement Directive (HMD), Council Directive (EC) No 2003/96, 2003 Energy Products Directive (EPD) and the UK Regulations implementing these.

Council Directive (92/12/EEC) of 25 February 1992 (Holding and Movement Directive)

‘on the general arrangements for products subject to excise duty and on the holding movement and monitoring of such products’

This directive forms the basis for:

• Our documentary controls on the holding and movement of goods liable to excise duties.
• The tax warehouse and Registered Excise Dealers & Shippers (REDS) system
• It also sets down the rules on mutual assistance with other EU tax authorities

The full body of the text which can be found using Lex-Nex on the www.Europa.ec website, establishes the requirements for the holding & movement of excise goods and the definition of authorised warehouse-keeper, tax-warehouse, suspension arrangements and registered traders.

Excise Goods (Holding, Movement, Warehousing and REDS) Regulations 1992 SI 1992/3135 implements Council Directive 92/12/EEC.

These regulations were designed to permit the free movement of excise goods with no customs formalities at frontiers, enabling UK exporters and importers to continue with intra- community trade from 1 January 1993.

Duty Suspended Movement of Excise Goods Regulations 2001 (DSMEG) SI 2001/3022 implements Article 20 of Directive 92/12

Relates to duty suspended movements between Member States. It fixes the duty point for EU movements where there has been an irregularity, for example where a certified AAD has not been returned to the consignor within 4 months.

Excise Goods (Accompanying Documents) Regulations 2002 (EGAD)

One of the main things these regulations deal with are Accompanying Administrative Documents (AADs).

(N.B. AADs are the subject of the new community-wide EMCS system see HCOTEG61260).

Council Directive (EC) No 2003/96, 2003 (Energy Products Directive)

‘on the restructuring of the Community Framework for the taxation of Energy Products & Electricity’.

Introduces taxation on energy products and on electricity, including the use of mineral oils. Annexe II deals with reduced rates of taxation and exemptions from such taxation referred to in Article 18(1).

The Directive covers the following issues (previously contained in Directives 92/81 and 92/82/EEC).

• Restructures the community framework for the taxation of energy products
• Clarifies what products are subject to control as oil
• Defines the circumstances in which relief from excise duty can be allowed
• Covers the procedure known as Standard Temperature Accounting (STA)
• The minimum rates of duty for the member states who have been permitted to defer introduction of these rates

The full body of the text can be found using Lex-Nex on the www.Europa.ec website.