Excise Cross-Border

Table of Contents

EU Regime

An EU regime applies with respect to the production, processing, and holding of excisable products under duty suspension within each state. It also applies to intra-EU movements of excisable products.

The principal categories of excisable products are

mineral oils,
electricity, alcohol and
alcoholic beverage
manufactured tobacco.

There are exemptions from excise duty on limited amounts of alcohol and tobacco acquired by a private individual for use for non-commercial purposes and transported into the state by a private individual and accompanied by him during transportation.

Imports to EU

Excise duty on direct imports of excisable products from outside the EU into the state is payable at import unless the products are removed to a tax warehouse. In the case of excisable products, dispatched to or received in another state, a intra-EU warehousing network allows duty suspended movement of goods to the premises of receipt with duty been paid on release.

Intra-EU

Excisable products may be transferred between EU States under duty suspension arrangements or where excise duty has been applied as a duty-paid consignment. Arrangements must be made for the payment of excise duty and VAT on the products consigned.

In order to receive consignment under duty suspension, the trader must be registered with the Revenue as a registered consignee or temporary registered consignee. A registered consignee is a person other than an authorised Warehouse keeper, who in course of his business is authorised to receive at designated premises, excisable products from other EU States under duty suspension arrangements.

A temporary registered consignee is a person who occasionally, in the course of his business, receives excisable products from other EU States under duty suspension arrangements not exceeding 12 in a calendar year. In this case, registration is restricted to a specific quantity of excisable products, a single consignment, a single consignor and a specified period.

Consignees Procedures

A registered consignee must, before any consignment is dispatched, provide security to cover the duty. The consignee must notify the Revenue of the arrival of the excisable products at the premises or place of delivery, pay any duty that has not already been paid, and hold the consignment intact until authorised for release by Revenue Commissioners.

A temporary registered consignee does not need to have a direct debit deferred payment arrangement but must pay the excise duty on the consignment before it is dispatched. When payment is made, the temporary registered consignee must advise the Revenue of the payment by means of an excise duty entry for that purpose, a description of the excisable products being consigned and the SEED number of the consignor in the other State.

The applicant must be registered by Revenue. The Revenue must be satisfied that the applicant is engaged in a legitimate trade in excisable products; has a secure premise or place to which consignments can be delivered and where they can be examined; is registered for VAT; has a current excise licence; and has access to the ECMS system.

A temporary registered consignee who receives more than 12 consignments in a calendar year must be registered as a fully registered consignee before further consignments may be received.

Registration is subject to conditions including provisions for delivery of consignments and accounting for them, systems of stock control and accounting, systems for management and supervisory control, confirmation of access to the premises by Revenue, compliance with Health and Safety legislation and access to Excise Movement Controlled System.

Tax & Duty

Value Added Tax is payable on excisable products consigned. It is payable at the same time in the case of alcohol and alcoholic products.

Under EU excise law, excisable products are subject to excise duty in the State to which they are consigned. Where there are consigned for commercial purposes to another EU state, they are subject to excise duty in the destination State.

Provisions exist for reimbursement of the excise duty paid in the State of dispatch.

Duty Paid Consignments

There are two types of commercial purpose duty-paid consignments namely:

distance sales to a private individual in another State;
consignments to a trader in the State under cover of the Simplified Accompanying Document.

Consignments of excisable products by private individuals to private individuals or groups of private individuals other than accompanied products for personal use that qualify for relief are subject to the procedures applicable to a trader.

Consignments Inwards

The standard procedure for all duty-paid consignments to the State for commercial purposes includes and covers

consignments from a trader in another State to a trader in the State,
consignments brought into the State by a trader established in another State, brought into that State by the trader.

Before bringing a consignment into the State, a declaration must be made to Revenue, and an excise duty entry made, with payment or security for excise duty on the products consigned together with a guarantee document delivered to Revenue confirming that excise duty on the products to be confined has been paid or secured.

Where the excise duty is paid at that time, a copy of the entry may prove as the written declaration and the duty guarantee document. A Simplified Accompanying Document must be completed. Copies two and three accompany the consignment at all times.

After the arrival of the consignment at the premises or place specified in the declaration, the party making the declaration must notify Revenue and hold the consignment for inspection. He must endorse copy two and three of the accompanying document with details of products received and forward copy of the excise duty entry to the Revenue.

When the Revenue authorises release of the excisable products, they shall endorse Copy two and three and return it to the declarant.

Private Consignments Inwards

Where a trader in another EU State dispatches excisable products to a private person in another State, duty paid, requirements apply. The non-state vendor must be registered for VAT in the state of receipt and must appoint a person to be established as a tax representative. He must be approved by Revenue.

The non-state vendor or tax representative must deliver declarations, advance declarations and a duty guarantee document to the Revenue at least one day prior to dispatch of the consignment and pay and secure the excise duty at the time the declaration is made.

Where excise duty is paid at that time, the copy serves as the advance declaration and guarantee document. Revenue endorses the copy used as a duty guarantee document and returns it to the declarant.

After a consignment is received, the non-State vendor or tax representative must notify the Revenue of the arrival of the consignment at the place specified in the advance declaration and pay any outstanding excise duty. He must hold the product for inspection if required to do so.

Non-State vendors must register for VAT in the State. VAT is payable on all excisable products.

Finance Act 2023

Finance Act 20233 makes a number of minor amendments to Part 2 of the Finance Act 2001 by inserting a new definition of an ‘electronic simplified administrative document’ and updating legislative references. These amendments are required following the coming into force of Commission Delegated Regulation (EU) 2022/1636 concerning intra-EU movements of excisable products which applies from 13 February 2023.