Tobacco Products Duty Act 1979

Tobacco products

1

• (1) In this Act “tobacco products” means any of the following products, namely,—

• (a) cigarettes;

• (b) cigars;

• (c) hand-rolling tobacco;

• (d) other smoking tobacco; ...

• (e) chewing tobacco, and

• (f) tobacco for heating,

which are manufactured wholly or partly from tobacco or any substance used as a substitute for tobacco....

• (1A) But a product is not a tobacco product for the purposes of this Act if—

• (a) the product does not contain any tobacco, and

• (b) the Commissioners are satisfied that—

• (i) the product is of a description that is used for medical purposes, and

• (ii) the product is intended to be used exclusively for such purposes.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) The Treasury may by order made by statutory instrument provide that in this Act references to cigarettes, cigars, hand-rolling tobacco, other smoking tobacco, chewing tobacco and tobacco for heating shall or shall not include references to any product of a description specified in the order, being a product manufactured as mentioned in subsection (1) above ... ; and any such order may amend or repeal subsection (2) or (2A) above.

• (4) Subject to subsection (5) below, a statutory instrument by which there is made an order under subsection (3) above shall be laid before the House of Commons after being made; and unless the order is approved by that House before the expiration of 28 days beginning with the date on which it was made, it shall cease to have effect on the expiration of that period, but without prejudice to anything previously done under it or to the making of a new order.

In reckoning any such period no account shall be taken of any time during which Parliament is dissolved or prorogued or during which the House of Commons is adjourned for more than 4 days.

• (5) Subsection (4) above shall not apply to any order containing a statement by the Treasury that the order does not extend the incidence of the duty or involve a greater charge to duty or a reduction of any relief; and a statutory instrument by which any such order is made shall be subject to annulment in pursuance of a resolution of the House of Commons.

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Charge and remission or repayment of tobacco products duty

2

• (1) There shall be charged on tobacco products imported into or manufactured in the United Kingdom a duty of excise at the rates shown, . . . , in the Table in Schedule 1 to this Act.

• (2) Subject to such conditions as they see fit to impose, the Commissioners shall remit or repay the duty charged by this section where it is shown to their satisfaction that —

• (a) the products in question have been—

• (i) exported or shipped as stores, or

• (ii) used solely for the purposes of research or experiment; and

• (b) any fiscal marks carried by the products have been obliterated;

and the Commissioners may by regulations provide for the remission or repayment of the duty in such other cases as may be specified in the regulations and subject to such conditions as they see fit to impose.

Additional duty on higher tar cigarettes

3

Calculation of duty in case of cigarettes more than 9 cm long

4

For the purposes of the references to a thousand cigarettes in paragraph 1 in the Table in Schedule 1 to this Act . . . any cigarette more than 8 cm. long (excluding any filter or mouthpiece) shall be treated as if the first 8 cm. of it, each 3 cm. portion of the remainder of it (if any) and the remaining portion of it (if any) were a separate cigarette.

Retail price of cigarettes

5

• (1) For the purposes of the duty chargeable at any time under section 2 above in respect of cigarettes of any description, the retail price of the cigarettes shall be taken to be—

• (a) the higher of—

• (i) the recommended price for the sale by retail at that time in the United Kingdom of cigarettes of that description, and

• (ii) any (or, if more than one, the highest) retail price shown at that time on the packaging of the cigarettes in question,

or

• (b) if there is no such price recommended or shown, the highest price at which cigarettes of that description are normally sold by retail at that time in the United Kingdom.

• (1A) In subsection (1) above “ recommended price ”—

• (a) in relation to a case in which cigarettes of the applicable description are manufactured by a manufacturer in the United Kingdom, means any price recommended by that manufacturer; and

• (b) in relation to a case which does not fall within paragraph (a) above, means any price recommended by an importer of cigarettes of the applicable description.

• (2) The duty in respect of any number of cigarettes shall be charged by reference to the price which, in accordance with subsection (1) above, is applicable to cigarettes sold in packets of 20 or of such other number as the Commissioners may determine in relation to cigarettes of the description in question; and the whole of the price of a packet shall be regarded as referable to the cigarettes it contains notwithstanding that it also contains a coupon, token, card or other additional item.

• (3) In any case in which duty is chargeable in accordance with paragraph (b) of subsection (1) above—

• (a) the question as to what price is applicable under that paragraph shall, subject to subsection (4) below, be determined by the Commissioners; and

• (b) the Commissioners may require security (by deposit of money or otherwise to their satisfaction) for the payment of duty to be given pending their determination.

• (4) Any person who has paid duty in accordance with a determination of the Commissioners under subsection (3)(a) above and is dissatisfied with their determination may require the question of what price was applicable under subsection (1)(b) above to be referred to the arbitration of a referee appointed in accordance with subsections (7) to (9).

• (5) If, on a reference to him under subsection (4) above, the referee determines that the price was lower than that determined by the Commissioners, they shall repay the duty overpaid together with interest on the overpaid duty from the date of the overpayment at such rate as the referee may determine.

• (6) The procedure on any reference to a referee under subsection (4) above shall be such as may be determined by the referee; and the referee’s decision on any such reference shall be final and conclusive.

• (7) The Lord Chancellor is to appoint the referee.

• (8) The appointment is to be made only with the concurrence of—

• (a) the Lord Chief Justice of England and Wales, if the determination of the Commissioners was made in relation to England and Wales;

• (b) the Lord President of the Court of Session, if the determination was made in relation to Scotland; or

• (c) the Lord Chief Justice of Northern Ireland, if the determination was made in relation to Northern Ireland.

• (9) None of the following may be appointed—

• (a) an official of any government department;

• (b) an office holder in, or a member of the staff of, the Scottish Administration.

• (10) The Lord Chief Justice of England and Wales may nominate a judicial office holder (as defined in section 109(4) of the Constitutional Reform Act 2005) to exercise his functions under this section.

• (11) The Lord President of the Court of Session may nominate a judge of the Court of Session who is a member of the First or Second Division of the Inner House of that Court to exercise his functions under this section.

• (12) The Lord Chief Justice of Northern Ireland may nominate any of the following to exercise his functions under this section—

• (a) the holder of one of the offices listed in Schedule 1 to the Justice (Northern Ireland) Act 2002;

• (b) a Lord Justice of Appeal (as defined in section 88 of that Act).

Alteration of rates of duty

6

• (1) The Treasury may by order made by statutory instrument increase or decrease any of the rates of duty for the time being in force under the Table in Schedule 1 to this Act by such percentage of the rate, not exceeding 10 per cent., as may be specified in the order, but any such order shall cease to be in force at the expiration of a period of one year from the date on which it takes effect unless continued in force by a further order made under this subsection.

• (2) In relation to any order made under subsection (1) above to continue, vary or replace a previous order so made, the reference in that subsection to the rate for the time being in force is a reference to the rate that would be in force if no order under that subsection had been made.

• (3) A statutory instrument under subsection (1) above by which there is made an order increasing the rate in force at the time of making the order shall be laid before the House of Commons after being made; and unless the order is approved by that House before the expiration of 28 days beginning with the date on which it was made, it shall cease to have effect on the expiration of that period, but without prejudice to anything previously done under it or to the making of a new order.

In reckoning any such period no account shall be taken of any time during which Parliament is dissolved or prorogued or during which the House of Commons is adjourned for more than 4 days.

• (4) A statutory instrument made under subsection (1) above to which subsection (3) above does not apply shall be subject to annulment in pursuance of a resolution of the House of Commons.

• (5) For the purposes of this section—

• (a) the percentage and each amount per thousand cigarettes in paragraph 1 in the Table in Schedule 1 to this Act shall be treated as separate rates of duty; . . .

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regulations for management of duty

7

• (1) The Commissioners may with a view to managing the duty charged by section 2 above make regulations—

• (a) prescribing the method of charging the duty and for securing and collecting the duty;

• (aa) for charging the duty, in such circumstances as may be specified in the regulations, by reference to the weight of the tobacco products at a time specified in the regulations or by the Commissioners (whether the time at which the products become chargeable or that at which the duty becomes payable or any other time);

• (b) for the registration of premises for the safe storage of tobacco products and for requiring the deposit of tobacco products in, and regulating their storage andtreatment in and removal from, premises so registered;

• (ba) for the registration of premises for the manufacture of tobacco products, for restricting or prohibiting the manufacture of tobacco products otherwise than in premises so registered and for regulating their storage and treatment in, and removal from, such premises;

• (c) for the registration of premises where—

• (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (ii) materials for the manufacture of tobacco products are grown, produced, stored or treated; or

• (iii) refuse from the manufacture of tobacco products is stored or treated,

and for regulating the storage and treatment in, and removal from, premises so registered of such materials and refuse;

• (d) for requiring the keeping and preservation of such records, the notification of such information, and the making of such returns, as may be specified in the regulations or required by the Commissioners; and

• (e) for the inspection of goods, documents and premises.

• (1A) Regulations under subsection (1) above may, in particular, include provision—

• (a) imposing, or providing for the imposition under the regulations of, conditions and restrictions relating to any of the matters mentioned in that subsection;

• (b) enabling the Commissioners to dispense with compliance with any provision contained in the regulations in such circumstances and subject to such conditions (if any) as they may determine.

• (2) If any person fails to comply with any regulation made under subsection (1) above his failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalities), and any article in respect of which any person fails to comply with any such regulation, or which is found on premises in respect of which any person has failed to comply with any such regulation, shall be liable to forfeiture

Charge in cases of default

8

• (1) Where the records or returns kept or made by any person in pursuance of regulations under section 2 or 7 above show that any tobacco products or materials for their manufacture are or have been in his possession or under his control, the Commissioners may from time to time require him to account for those products or materials.

• (2) Unless a person required under subsection (1) above to account for any products or materials proves—

• (a) that duty has been paid or secured under section 7 above in respect of the products or, as the case may be, products manufactured from the materials; or

• (b) that the products or materials are being or have been otherwise dealt with in accordance with regulations under section 2 or 7 above,

the Commissioners may assess an amount as duty due from him under section 2 above in respect of those products or, as the case may be, in respect of such products as in their opinion might reasonably be expected to be manufactured from those materials , and they may notify him or his representative accordingly.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regulations

9

• (1) Any power to make regulations under this Act shall be exercisable by statutory instrument and , subject to subsection (1A), any statutory instrument by which the power is exercised shall be subject to annulment in pursuance of a resolution of either House of Parliament.

• (1A) A statutory instrument containing regulations under section 8JA, 8M, 8N , 8U or 8V is subject to annulment in pursuance of a resolution of the House of Commons.

• (2) Regulations under this Act—

• (a) may enable the Commissioners to dispense with compliance with a provision of the regulations (whether absolutely or conditionally),

• (b) may make provision generally or only in relation to specified cases or circumstances,

• (c) may make different provision in relation to different cases or circumstances, and

• (d) may include transitional, consequential or incidental provision.

Interpretation

10

• (1) In this Act—

• “hand-rolling tobacco” has the meaning given by section 1(2) above; and

• “tobacco products” has the meaning given by section 1(1) above.

• (2) This Act and the other Acts included in the Customs and Excise Acts 1979 shall be construed as one Act but where a provision of this Act refers to this Act that reference is not to be construed as including a reference to any of the others.

• (3) Any expression used in this Act or in any instrument made under this Act to which a meaning is given by any other Act included in the Customs and Excise Acts 1979 has, except where the context otherwise requires, the same meaning in this Act or in any such instrument as in that Act; and for ease of reference the Table below indicates the expressions used in this Act to which a meaning is given by any other such Act—

Customs and Excise Management Act 1979

• “the Commissioners”

• “the customs and excise Acts”

• “the Customs and Excise Acts 1979”

• “goods”

• “importer”

• “shipped”

• “stores”.

Repeals, savings and transitional and consequential provisions

11

• (1) The enactments specified in Schedule 2 to this Act are hereby repealed to the extent specified in the third column of that Schedule, but subject to the provision at the end of that Schedule.

• (2) Any provision of this Act relating to anything done or required or authorised to be done under or by reference to that provision or any other provision of this Act shall have effect as if any reference to that provision, or that other provision, as the case may be, included a reference to the corresponding provision of the enactments repealed by this Act.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) Nothing in this section shall be taken as prejudicing the operation of sections 15 to 17 of the Interpretation Act 1978 (which relate to the effect of repeals).

Citation and commencement

12

• (1) This Act may be cited as the Tobacco Products Duty Act 1979 and is included in the Acts which may be cited as the Customs and Excise Acts 1979.

• (2) This Act shall come into operation on 1st April 1979

SCHEDULE 1

SCHEDULE 2

Tobacco products.

8A

Fiscal marking applies to tobacco products that are—

• (a) cigarettes, or

• (b) hand-rolling tobacco.

8B

• (1) The Commissioners may by order made by statutory instrument amend section 8A above for the purpose of causing fiscal marking—

• (a) to apply to any description of tobacco products to which it does not apply, or

• (b) to cease to apply to any description of tobacco products to which it does apply.

• (2) Where fiscal marking applies to any description of tobacco products, the Commissioners may by regulations provide that fiscal marking does not apply to such products of that description as are of a description specified in the regulations.

• (3) A statutory instrument containing (whether alone or with other provisions) an order under subsection (1)(a) above shall not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.

• (4) A statutory instrument that—

• (a) contains (whether alone or with other provisions) an order under subsection (1) above, and