The free movement of goods is a fundamental freedom of the internal market of the European Union. This in effect ensures that goods can move freely across borders. However, certain restrictions are in place in relation to the import from Northern Ireland of mineral oils for vehicles and household use. These restrictions arise from the European Union excise regime which governs the production, processing and holding of excisable products under duty suspension, within each Member State. This regime also governs all intra-Union movement of excisable products. The key features as they apply to mineral oil imports from Northern Ireland are set out below;
Mineral oil for use as motor vehicle fuel
Persons bringing mineral oil fuel for vehicles into the State from Northern Ireland must pay excise duty (Mineral Oil Tax) on that fuel at the rates specified in Mineral Oil Tax law (Chapter 1 of Part 2 of the Finance Act 1999). Certain exceptions apply to this requirement where the fuel is present in the fuel tank of a vehicle at the time that vehicle is brought into the State or where the fuel is in a single portable vessel with a capacity of not more than 10 litres that is in that vehicle at the time of coming into the State, and where the proper UK excise duty applicable to the use of that fuel in the vehicle involved has been paid in that jurisdiction.
In the case of natural gas used for use as vehicle fuel, the liability to excise duty does not arise at the time the gas is brought into the State, but rather where the gas is supplied to a person who supplies or intends to supply it to the tank of a vehicle.
Mineral oil fuels for use other than as motor vehicle fuel
Persons bringing fuel into the State for use other than as road vehicle fuel (for example for heating use, or for agricultural tractors or stationary motors) also must pay the Mineral Oil Tax on that fuel. In the case of gas oil or kerosene, where a person wishes to pay only the reduced rate applicable to those fuels when intended for use other than as road fuel, the oil must be marked with the fuel markers prescribed by the Revenue Commissioners.
In addition, all commercial movements of mineral oil into the State from Northern Ireland are subject to a movement control system. Movements of duty-suspended mineral oil are subject to an EU-wide electronic system (known as the Excise Movement Control System or "EMCS"). In the case of movements of duty-paid oils, such movements may only take place under an equivalent paper-based control method.
Where a person also intends to sell or deal in mineral oil for use as motor vehicle fuel or in gas oil or kerosene for use other than as road fuel, the appropriate Mineral Oil Trader's Licence, issued by the Revenue Commissioners, must also be held.
Solid Fuel
Mechanisms have been put in place by the Department of Communications, Climate Action and Environment for control of supplies of solid fuel coming into the State. Regulations issued by that Department govern the marketing, sale, distribution and burning of solid fuels, require the registration of coal traders and establish higher environmental standards for coal supplied in the State compared with Northern Ireland. Compliance with those Regulations is enforced by local authorities.
In addition, solid fuel (coal and peat) is liable to excise duty in this jurisdiction in the form of Solid Fuel Carbon Tax. A person making the first supply of a solid fuel in the State must pay Solid Fuel Carbon Tax on the quantity of solid fuel concerned. The tax is not payable where the person acquires a quantity of solid fuel and personally accompanies it into the State for that person's own private consumption.
Unlike mineral oils, EU Law does not require compliance with movement controls for solid fuels for excise duty purposes. Therefore, no excise movement controls apply to imports of solid fuel from Northern Ireland, whether by private persons for their own consumption or by traders or businesses for commercial purposes.
