Finance Act, 2001

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Warehousing.

109.—(1) Subject to subsections (2) and (3) the following shall take place only in a tax warehouse—

(a) producing and processing of excisable products, and

(b) holding of excisable products where the proper excise duty has not been paid or remitted.

(2) The provisions of subsection (1)(a) do not apply to—

(a) operations by which a user of a mineral oil makes its re-use possible in his or her own undertaking, provided that the excise duty already paid on such mineral oil is not less than the excise duty which would be due if the re-used mineral oil were again to be liable to excise duty,

(b) operations consisting of mixing or blending of excisable products with other excisable products or other materials, provided—

(i) that the proper excise duty on such excisable products has been paid previously, and

(ii) that the amount paid is not less than the amount of the excise duty which would be chargeable on the mixture or blend.

(3) The Commissioners may, on written application from the person concerned, grant an exemption from subsection (1)(a)—

(a) in respect of operations during which small quantities of excisable products are obtained incidentally, and

(b) in such other cases of production or processing of excisable products and subject to such conditions as they may deem fit to impose, but only where—

(i) the proper excise duty on such products has been paid previously, and

(ii) the amount paid is not less than the amount of the excise duty which would be chargeable following such production or processing.

(4) (a)  A person shall only be approved as an authorised warehousekeeper under this section where such person appears to the Commissioners to be able to satisfy such requirements for approval as they may think fit to impose.

(b)  A premises or place shall only be approved as a taxwarehouse—

(i) where such premises or place are used or intended for use for the production, processing, holding, receipt or dispatch of excisable products,

(ii) where such premises or place are used or intended for use for such production or processing and it is owned or occupied by a person licensed for such production or processing under any provision of the statutes relating to the duties of excise and the management of such duties and any instrument relating to the duties of excise made under statute,

(iii) where there has been given to an officer such information as may be required of the warehousekeeper in relation to such premises or place and in relation to all rooms, areas, plant, equipment, machinery and vessels in such premises or place, and

(iv) where such premises or place appears to the Commissioners to satisfy such requirements for approval as they may think fit to impose.

(5) The Commissioners may approve a person, premises or place under this section for such periods, and subject to such conditions (including the giving of security) as they may think fit to impose and the approved person shall comply with any such conditions.

(6) The Commissioners may, at any time for reasonable cause and following such notice as is reasonable in the circumstances—

(a) vary the terms of their approval of any person, premises or place under this section.

(b) amend the extent of the premises or place which is so approved, or

(c) revoke the approval granted if—

(i) an authorised warehousekeeper contravenes or fails to comply with any condition of approval imposed by them under this section, or with any provision of this Part or of regulations made under or for the purposes of such provisions, or

(ii) an approved warehouse fails to comply with any condition of approval imposed by them under this section.

(7) Any person approved as or deemed to be an authorised warehousekeeper and any premises or place approved as or deemed to be a tax warehouse under section 105 of the Finance Act, 1992 , shall be deemed by the Commissioners to be approved as an authorised warehousekeeper or a tax warehouse respectively for the purposes of this section.