Tony Gregory
Question:178 Mr. Gregory asked the Minister for Finance his response to the points raised in the correspondence (details supplied) in relation to customs and excise. [4066/98]
Written Answers. - Customs and Excise Duty.
The matters raised concern beer duty suspension and deferment.
Regulation 14(1) of the Beef Regulations, 1993, requires the prior approval of the Revenue Commissioners before beer may be removed from a tax warehouse without payment of duty for a purpose other than exportation or shipment as stores. Since the introduction of the end-product beer duty regime in 1993, the commissioners' policy has been to restrict the inter-warehouse movement of beer, both home-brewed and imported, in the State except in certain limited circumstances; for example, where the beer is intended to be exported or shipped as stores at the end of its storage period in the State, or the beer requires further processing or packaging, or where exceptional circumstances apply in a particular case. The deferred duty payment arrangements which apply to beer — average 45 days deferment — are considered very generous given the comparatively limited shelf life of beer products generally. The commissioners therefore will not normally allow the re-warehousing in the State of packaged beer intended for home use where the sole intention is to extend the period of duty-suspension of the beer in question.
The brewing company concerned wrote to their local warehouse control officer on 22 December 1997 with a proposal to remove bulk consignments of beer from their tax warehouse in Dublin for bottling, under duty suspension arrangements, at the premises of a third party in Wexford. The company claimed that the Wexford premises was an approved tax warehouse but subsequently official inquiries established that this was not the case and the company was informed accordingly on 5 February last. The brewing company was also informed at that time that if an application for approval as a tax warehouse was received from the Wexford company the application would be dealt with expeditiously.
An application from the Wexford company for approval of their premises as a tax warehouse was received by fax on 10 February and approval, under the standard conditions applicable to such cases, was granted with effect from 13 February. An application from the brewing company to be allowed to remove bulk beef from their tax warehouse to the Wexford tax warehouse was received on 6 February and the application was allowed, under the standard conditions, with effect from 13 February.
The brewing company have complained about the Revenue Commissioner's interpretation of Council Directive 92/12/EEC. The Commissioners inform me that they have at all times fully complied with the requirements of this directive in relation to this matter. The delays experienced by the company in this case have been due to the company's failure to supply correct information in the first instance and to follow procedures by submitting the necessary applications for approval.