Finance Bill Tracking Service 2009 | Budget 2009

BN84 WITHDRAWAL OF THE WAREHOUSING FOR EXPORT DRAWBACK SCHEME FOR ALCOHOLIC LIQUORS

Who is likely to be affected?

1. Persons claiming repayment of duty on 'duty paid' consignments of alcoholic liquors that are warehoused for export.

General description of the measure

2. The measure withdraws the warehousing for export (WFE) drawback scheme for alcoholic liquors. Other drawback schemes remain unchanged.

3. This measure is part of the Government's renewed Tackling Alcohol Fraud strategy, also announced today. Further information on this can be found on the HM Revenue & Customs (HMRC) website.

4. Alongside this change is a technical amendment to the drawback provisions allowing HMRC to recover drawback by assessment where the claim is found to be ineligible. Previously such monies were recovered by HMRC on demand. This change now makes such recovery of drawback an appealable matter bringing drawback recovery in line with other areas of excise law.

Operative dates

5. Alcoholic liquors warehoused for export on or after 1 June 2009 will not be eligible for repayment of excise duty.

6. The technical amendment will have legal effect from the same day.

Current law and proposed revisions

Withdrawal of the warehousing for export drawback scheme

7. Amendments to the Excise Goods (Drawback) Regulations 1995 (S.I.1995/1046) ("the principal Regulations") are introduced today.

8. Regulation 5 of the principal Regulations provides that, for the purposes of making a claim for drawback of excise duty, goods are eligible goods if the excise duty charged on them has been paid (and has not been remitted, repaid or drawn back) and they have been exported, warehoused for export or destroyed. Regulation 3 of these Regulations amends regulation 5 of the principal Regulations to provide that alcoholic liquors that are warehoused for export on or after 1 June 2009 are not eligible goods.

9. Regulation 4 amends regulation 13 of the principal Regulations to prescribe, for the purposes of section 2(3A) of the Finance (No.2) Act 1992, the person who may be assessed under that section for an amount equal to sums paid or credited in respect of drawback of excise duty in cases where entitlement to such drawback is cancelled on or after 1 June 2009.

Further advice

10. If you have any questions about this change, please contact the National Advice Service on 0845 010 9000. Information about Budget measures is available on the HM Revenue & Customs website at www.hmrc.gov.uk