Tobacco Products Duty Act 1979

• (3) The relevant quantity of smoking tobacco is equal to the quantity by weight of the raw tobacco in respect of which the controlled activity contravening section 8L(1) or (as the case may be) regulations under section 8N has been carried on.

• (4) In this section a reference to “smoking tobacco” is a reference to tobacco products within section 1(1)(d) (“other smoking tobacco”).

8P

• (1) If the Commissioners think it right because of special circumstances, they may reduce a penalty under section 8O.

• (2) In subsection (1) “special circumstances” does not include ability to pay.

• (3) In subsection (1) the reference to reducing a penalty includes a reference to—

• (a) staying a penalty, and

• (b) agreeing a compromise in relation to proceedings for a penalty.

8Q

• (1) Where a person becomes liable for a penalty under section 8O—

• (a) the Commissioners may assess the penalty, and

• (b) if they do so, they must notify the person liable.

• (2) A notice under subsection (1)(b) must state the contravention in respect of which the penalty is assessed.

• (3) A penalty payable under section 8O must be paid before the end of the period of 30 days beginning with the day on which the notification of the penalty is issued.

• (4) An assessment is to be treated as an amount of duty due from the person liable for the penalty and may be recovered accordingly.

• (5) An assessment may not be made later than one year after evidence of facts sufficient in the opinion of the Commissioners to indicate the contravention comes to their knowledge.

• (6) Two or more contraventions may be treated by the Commissioners as a single contravention for the purposes of assessing a penalty payable under section 8O.

8R

• (1) A person is not liable to a penalty under section 8O in respect of a contravention if—

• (a) the contravention is not deliberate, and

• (b) the person satisfies the Commissioners that there is a reasonable excuse for the contravention.

• (2) For the purposes of subsection (1)(b)—

• (a) where the person relies on another person to do anything, that is not a reasonable excuse unless the first person took reasonable care to avoid the contravention;

• (b) where the person had a reasonable excuse for the relevant act or failure but the excuse has ceased, the person is to be treated as having continued to have the excuse if the contravention is remedied without unreasonable delay after the excuse has ceased.

8S

A person is not liable to a penalty under section 8O in respect of a contravention in respect of which the person has been convicted of an offence.

8T

Where a person carries on a controlled activity in relation to raw tobacco in contravention of section 8L(1) or a requirement or restriction imposed by regulations under section 8N, the raw tobacco is liable to forfeiture.

8U

The Commissioners may by regulations provide that specified provisions of the Customs and Excise Management Act 1979 apply (with or without modification)—

• (a) in relation to persons who carry on controlled activities as they apply in relation to revenue traders whose trade or business relates to tobacco products, and

• (b) in relation to raw tobacco as they apply in relation to tobacco products.

An amount equal to the higher of—

8V

• (1) In this section “tobacco products manufacturing machinery” means machinery that is designed primarily for use for the purpose of (or for purposes including) manufacturing tobacco products.

• (2) The Commissioners may by regulations—

• (a) prohibit a person from purchasing, acquiring, owning or being in possession of, or carrying out other specified activities in respect of, an item of tobacco products manufacturing machinery, except in accordance with a licence granted under the regulations;

• (b) provide that if a person contravenes the prohibition in relation to an item of tobacco products manufacturing machinery, the machinery is liable to forfeiture.

• (3) The regulations may provide that the prohibition does not apply—

• (a) in relation to persons, or items of tobacco products manufacturing machinery, of a specified description;

• (b) in specified circumstances.

• (4) Regulations under this section may include provision—

• (a) imposing obligations on licensed persons;

• (b) for a licensed person who fails to comply with a condition or restriction of a licence, or with an obligation imposed by the regulations, to be liable to a penalty of the amount for the time being specified in section 9(2)(b) of the Finance Act 1994;

• (c) for exceptions from liability to a penalty under the regulations;

• (d) for the assessment and recovery of a penalty, including provision for two or more contraventions to be treated as a single contravention for the purposes of assessment;

• (e) for the Commissioners, if they think it right because of special circumstances, to remit, reduce (including reduce to nil) or stay a penalty, or agree a compromise in relation to proceedings for a penalty;

• (f) about reviews by the Commissioners, or by an officer of Revenue and Customs, of decisions in connection with licensing and the imposition of penalties under the regulations and about appeals against those decisions (which may include provision for specified decisions of the Commissioners to be treated as if they were listed in section 13A(2) of, or Schedule 5 to, the Finance Act 1994);

• (g) for the Customs and Excise Management Act 1979 to have effect in relation to licensed persons as it has effect in relation to revenue traders, subject to such modifications as may be specified in the regulations.

• (5) The Commissioners may, by or under regulations under this section, make provision—

• (a) regulating the grant of licences, including provision about the circumstances in which a licence may be granted and the requirements to be met by or in relation to the applicant (which may include a requirement that the applicant is a fit and proper person to hold a licence);

• (b) about the form, manner and content of an application for or in respect of a licence;

• (c) for licences to be subject to specified conditions or restrictions;

• (d) regulating the variation or revocation of a licence, or of any condition or restriction to which a licence is subject;

• (e) about the renewal, surrender or transfer of a licence;

• (f) for communications by or with the Commissioners in connection with a licence to be made electronically;

• (g) as to the arrangements for licensing bodies corporate which are members of the same group (as defined in the regulations);

• (h) for members of a group to be jointly and severally liable for any penalties imposed under the regulations.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Sale of marked tobacco when not permitted: penalties.

Offences: possession and sale etc. of unmarked tobacco.

Offences: use of premises for sale of unmarked tobacco.

Interfering with fiscal marks: penalties.

Tracing and security: regulations

8JA

• (1) The Commissioners may by regulations—

• (a) establish, and make provision about the operation of, a traceability system for tobacco products;

• (b) require security features to be applied to tobacco products.

• (2) For the purposes of subsection (1)—

• (a) a traceability system for tobacco products means a system under which the movements of tobacco products are recorded;

• (b) security features applied to tobacco products are features that a unit pack, or the packaging containing more than one unit pack, of tobacco products must carry for the purpose of enabling the identification of the products and the verification of their authenticity.

• (3) Tracing and security regulations may (among other things)—

• (a) require a unit pack, or the packaging containing more than one unit pack, of tobacco products to be marked with a unique code;

• (b) confer functions on the Commissioners or other persons (including functions involving the exercise of a discretion);

• (c) make provision by reference to things set out (whether by the Commissioners or other persons) in a notice given in accordance with the regulations;

• (d) specify technical standards (including by making provision under paragraph (c));

• (e) make provision about the processing of data (including provision about the recording, transmission, storing and accessing of data);

• (f) impose, or enable the imposition of, restrictions or requirements on persons of a specified description;

• (g) provide for the imposition of sanctions for failure to comply with such restrictions or requirements (see section 8JB);

• (h) provide for appeals from, and reviews of, decisions taken under the regulations.

• (4) Regulations under subsection (3)(f) may, in particular—

• (a) specify, or provide for the specification of, equipment or other material for use in connection with a restriction or requirement imposed by or under the regulations;

• (b) require persons of a specified description to provide such equipment or material to other persons of a specified description for specified purposes;

• (c) make provision about the way in which such equipment or material is to be provided, including how any costs are to be met by persons providing or receiving it.

• (5) Tracing and security regulations may—

• (a) make provision generally in relation to tobacco products or only in relation to specified descriptions of tobacco products;

• (b) make different provision for different areas;

• (c) make provision by supplementing or otherwise amending relevant existing law;

• (d) revoke relevant existing law.

• (6) The power to make regulations under this section is exercisable only where the Commissioners consider that doing so would facilitate the administration, collection or enforcement of the duty charged under section 2.

• (7) In this section and sections 8JB and 8JC—

• “relevant existing law” means—Chapter 2 of Part 1 of the Finance Act 1994 (customs and excise: appeals and penalties);the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009 (S.I. 2009/273);the Standardised Packaging of Tobacco Products Regulations 2015 (S.I. 2015/829); Commission Delegated Regulation (EU) 2018/573 of 15 December 2017 on key elements of data storage contracts to be concluded as part of a traceability system for tobacco products; Commission Implementing Regulation (EU) 2018/574 of 15 December 2017 on technical standards for the establishment and operation of a traceability system for tobacco products; Commission Implementing Decision (EU) 2018/576 of 15 December 2017 on technical standards for security features applied to tobacco products;the Tobacco Products (Traceability and Security Features) Regulations 2019 (S.I. 2019/594);

• “specified” means specified by or under tracing and security regulations;

• “traceability system for tobacco products” has the meaning given in subsection (2)(a);

• “tracing and security regulations” means regulations under subsection (1);

• “unit pack” means the smallest individual packaging in which a tobacco product is, or is intended to be, presented for sale to a consumer (but not including any transparent wrapper).

Tracing and security: sanctions

8JB

• (1) This section applies to tracing and security regulations that make provision for sanctions under section 8JA(3)(g).

• (2) The regulations may provide for the following kinds of sanction—

• (a) the imposition of monetary penalties of such amounts, not exceeding £10,000, as are determined in accordance with the regulations;

• (b) for tobacco products involved in a contravention of applicable law to be liable to forfeiture under the customs and excise Acts;

• (c) the application by the Commissioners of measures to restrict or prohibit a person’s participation, or continued participation, in any part of a traceability system for tobacco products (including measures to deactivate, or require the deactivation of, any code issued to the person for the purposes of such a system or to prevent such a code from being issued or reissued).

• (3) Provision under subsection (2)(a) may (among other things)—

• (a) provide for a penalty to be payable on the giving of a notice (“a penalty notice”) by such persons as are authorised by or under the regulations;

• (b) specify matters to which such persons may or must have regard when determining whether to give a penalty notice;

• (c) provide for the action to be taken if a monetary penalty is not paid in accordance with a penalty notice.

• (4) For the purposes of subsection (2)(b), tobacco products are “involved in a contravention of applicable law” if—

• (a) the products do not comply with a requirement imposed under tracing and security regulations or under relevant existing law, or

• (b) the products are found together with other products falling within paragraph (a).

Tracing and security: disclosure of information

8JC

• (1) The Commissioners (or anyone acting on their behalf) may, for a purpose within subsection (3), disclose information to—

• (a) a person on whom functions have been conferred by or under tracing and security regulations or relevant existing law;

• (b) an authorised officer of such a person.

• (2) A person mentioned in subsection (1)(a) or (b) may, for a purpose within subsection (3), disclose information to the Commissioners (or anyone acting on their behalf).

• (3) A purpose is within this subsection if it is connected with—

• (a) a function conferred by or under tracing and security regulations or relevant existing law, or

• (b) the enforcement of a restriction or requirement imposed by or under tracing and security regulations or relevant existing law.

• (4) A person who receives information as a result of subsection (1) may not—

• (a) use the information for a purpose other than a purpose within subsection (3), or

• (b) further disclose the information,

except with the consent of the Commissioners (which may be general or specific).

• (5) If—

• (a) a person discloses information in contravention of subsection (4)(b), and

• (b) the information relates to a person whose identity is specified in, or can be deduced from, the disclosure,

section 19 of the Commissioners for Revenue and Customs Act 2005 (offence of wrongful disclosure) applies in relation to that disclosure as it applies in relation to a disclosure of information in contravention of section 20(9) of that Act.

• (6) Nothing in this section authorises the making of a disclosure which would—

• (a) contravene the data protection legislation, or

• (b) be prohibited by the investigatory powers legislation.

In determining whether a disclosure would do either of those things, the powers conferred by this section are to be taken into account.

• (7) In subsection (6)—

• “the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act);

• “the investigatory powers legislation” means Parts 1 to 7 and Chapter 1 of Part 9 of the Investigatory Powers Act 2016.

• (8) Nothing in this section limits the circumstances in which information may be disclosed under section 18(2) of the Commissioners for Revenue and Customs Act 2005 or under any other enactment or rule of law.

• (9) References in this section to an authorised officer of any person are to any person who has been designated by the principal as a person to and by whom information may be disclosed by virtue of this section.

Raw tobacco: requirement for approval