The Denatured Alcohol Regulations 2005
| Year | 2005 |
2005 No. 1524
EXCISE
The Denatured Alcohol Regulations 2005
Made 8th June 2005
Laid before Parliament 8th June 2005
Coming into force 1st July 2005
The Commissioners of Her Majesty’s Revenue and Customs, in exercise of the powers conferred upon them by section 93(1)(d) and (2)(a) of the Customs and Excise Management Act 19791, sections 35 and 77 of the Alcoholic Liquor Duties Act 19792, section 1 of the Finance (No.2) Act 19923, and section 5 of the Finance Act 19954, hereby make the following regulations:
PART 1
PRELIMINARY
Citation and commencement
1. These Regulations may be cited as the Denatured Alcohol Regulations 2005 and come into force on 1st July 2005.
Interpretation
2. In these Regulations—
“the Act” means the Alcoholic Liquor Duties Act 1979;
“alcohol”, except in regulation 10(3), means “dutiable alcoholic liquor”;
“completely denatured alcohol” has the meaning given in regulation 4;
“formulation” means the recipe or list of substances and liquids, including any proportions, quantities, standards, or other criteria relating to those substances and liquids, that a producer is to use and follow when making the class of denatured alcohol or a batch of it to which the formulation relates;
“industrial denatured alcohol” has the meaning given in regulation 4;
“producer” means—
(a) a person who is a distiller, rectifier or compounder, and who is authorized by the Commissioners under section 75 of the Act to denature alcohol; or
(b) a person who holds an excise licence granted under that section, and who denatures or intends to denature alcohol at any premises;
“trade specific denatured alcohol” has the meaning given in regulation 4.
Revocation
3. The Iso-Propyl Alcohol Regulations 19275and the Methylated Spirits Regulations 19876are revoked.
PART 2
CLASSES OF DENATURED ALCOHOL AND FORMULATIONS
Classes of denatured alcohol
4.—(1) For the purposes of the Act, section 5 of the Finance Act 1995 and these Regulations there are the following classes of denatured alcohol—
(a)
(a) completely denatured alcohol;
(b)
(b) industrial denatured alcohol; and
(c)
(c) trade specific denatured alcohol.
(2) Subject to paragraphs (4), (6) and (7), completely denatured alcohol is denatured alcohol—
(a)
(a) that has been made in accordance with regulation 5, or
(b)
(b) that, if the denaturants that are employed are described in the Annex to Commission Regulation (EC) No. 3199/937, has been made in a member State other than the United Kingdom in accordance with a formulation and other requirements of that member State.
(3) Subject to paragraphs (4) and (6), industrial denatured alcohol is denatured alcohol—
(a)
(a) that has been made in accordance with regulation 6, or
(b)
(b) that is not completely denatured alcohol and—
(i) has been made in a member State other than the United Kingdom in accordance with a formulation and other requirements of that member State, and
(ii) has been incorporated into a product that is not for human consumption.
(4) Denatured alcohol made in a member State other than the United Kingdom is not denatured alcohol for the purposes of the Act, section 5 of the Finance Act 1995 or these Regulations if—
(a)
(a) the United Kingdom has, in accordance with Article 27(5) of Council Directive 92/83/EEC8, advised the European Commission that it gives rise to evasion, avoidance or abuse, and
(b)
(b) it has not been determined, in accordance with the procedure laid down in Article 24 of Council Directive 92/12/EEC9, that that denatured alcohol must be treated as exempt from excise duty under sub-paragraph (a) or (b) of Article 27(1) of Council Directive 92/83/EEC.
(5) Subject to paragraph (6), trade specific denatured alcohol is denatured alcohol that has been made in accordance with regulation 7.
(6) Denatured alcohol made outside the United Kingdom that has not been incorporated into a product that is not for human consumption is completely denatured alcohol, industrial denatured alcohol or trade specific denatured alcohol (as the case may be) if, in the opinion of the Commissioners, it has been made as nearly as is possible in accordance with one of the formulations described in the Schedule.
(7) Denatured alcohol made outside the United Kingdom and the Communities is completely denatured alcohol if, in the opinion of the Commissioners—
(a)
(a) the denaturants employed are described in the Annex to Commission Regulation (EC) No. 3199/93, and
(b)
(b) it has been made as nearly as is possible in accordance with a formulation of a member State other than the United Kingdom.
Completely denatured alcohol
5. A producer making completely denatured alcohol must—
(a) make it in accordance with the formulation described in paragraph 1 of the Schedule, and
(b) comply with the standards and other requirements of paragraphs 5 to 11 of that Schedule.
Industrial denatured alcohol
6. A producer making industrial denatured alcohol must—
(a) make it in accordance with the formulation described in paragraph 2 of the Schedule, and
(b) comply with the standards and other requirements of paragraphs 5 to 7 and 11 of that Schedule.
Trade specific denatured alcohol
7.—(1) Subject to paragraph (2), a producer making trade specific denatured alcohol must—
(a)
(a) make it in accordance with a formulation described in paragraph 3 of the Schedule, and
(b)
(b) comply with the standards and other requirements of paragraphs 4 to 6 and 11 of that Schedule (insofar as those paragraphs are applicable to the formulation he is following).
(2) Instead of following a formulation described in paragraph 3 of the Schedule, when making a batch of trade specific denatured alcohol a producer may make that batch in accordance with a formulation that is approved by the Commissioners under this regulation.
(3) The Commissioners may, if they think that in all the circumstances it is appropriate to do so, approve a formulation different from or as a variation on a trade specific denatured alcohol formulation described in paragraph 3 of the Schedule.
(4) The Commissioners' approval—
(a)
(a) may only be granted following a written application to them by a producer or other person (“the applicant”), and
(b)
(b) may be granted subject to such conditions as the Commissioners may reasonably impose,
and those conditions may be varied by the Commissioners for reasonable cause.
(5) The Commissioners may require for the purposes of their consideration of the application made under paragraph (4)—
(a)
(a) a written statement containing the reasons why, in the applicant’s opinion, completely denatured alcohol, industrial denatured alcohol, and a formulation of trade specific denatured alcohol described in paragraph 3 of the Schedule, would all be unsuitable or detrimental having regard to the use to which it is intended that the denatured alcohol will be put;
(b)
(b) samples of the proposed formulation of trade specific denatured alcohol and of the ingredients of that formulation; and
(c)
(c) any other information that the Commissioners determine to be material to their consideration of whether or not it would be appropriate for them to grant approval of the formulation in question.
PART 3
PRODUCERS AND DISTRIBUTORS OF DENATURED ALCOHOL
Producer’s application for approval and entry of premises
8.—(1) A producer must, in respect of each set of premises at which he intends to make a class of denatured alcohol, make written application to the Commissioners for approval of the process he intends to employ when making that denatured alcohol.
(2) The application must include—
(a)
(a) the class of denatured alcohol which the producer intends to make at the premises;
(b)
(b) the formulation which the producer intends to follow in making a batch of that class;
(c)
(c) the process which the producer intends to employ when mixing the alcohol with the other substances specified by the formulation being followed in making the denatured alcohol;
(d)
(d) such other information as the Commissioners may require.
(3) No person may begin to denature alcohol until—
(a)
(a) the Commissioners have, in accordance with this regulation, approved the process to be employed, and
(b)
(b) if so required by paragraph (7), entry has been made in accordance with section 108 of the Customs and Excise Management Act 197910of each set of premises at which it is intended to make denatured alcohol.
(4) The Commissioners' approval of the process to be employed—
(a)
(a) may be granted subject to such conditions as the Commissioners may reasonably impose, and
(b)
(b) those conditions may be varied by the Commissioners for reasonable cause.
(5) A producer who has received the Commissioners' approval of the process to be employed must ensure that no other process is used and that the approved process is not varied without first receiving the Commissioners' approval of that other process or of that variation.
(6) Paragraph (4) applies to any approval given under paragraph (5).
(7) Except in the case of premises that are an excise warehouse, a producer must make entry of each set of premises at which he intends to make a class of denatured alcohol.
Producer’s and distributor’s account of goods and distributor’s entry of premises
9.—(1) In this regulation—
“distributor” means a person who—
(a) holds an excise licence for the purposes of section 75 of the Act11,
(b) does not denature alcohol at any premises on which he holds denatured alcohol, and
(c) deals or intends to deal wholesale in denatured alcohol;
“goods” includes—
(a) any alcohol, denaturants, dyes...
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