H.M. TREASURY Notes on Clauses

CLAUSE 4: DRAWBACK OF DUTY ON EXPORTATION

INTRODUCTION

1. This clause and Schedule 20 Part I (1) removes the right to claim excise drawback (repayments of excise duty) in relation to exports of oil and oil-based products under the Hydrocarbon Oil Duties Act 1979.

DETAILS OF THE CLAUSE

2. Subsection (1) removes 'exportation,' from section 15 (1) of the Hydrocarbon Oil Duties Act 1979.

3. Subsection (2) provides that the changes will take effect after Royal Assent to this Bill.

BACKGROUND

4. This change obliges drawback claims in relation to exports of oils and oil-based products to be made in future under the Excise Goods (Drawback) Regulations 1995. The powers for these regulations are derived from the Finance (No. 2) Act 1992.

5. The purpose of this change is to consolidate the legislation in relation to all drawback claims for exports of oil and oil-based products under the Excise Goods (Drawback) Regulations 1995. It does not affect the current provisions for drawback claims in relation to ships' and aircraft stores, which remain in the Hydrocarbon Oil Duties Act.

6. This change forms part of the ongoing simplification and consolidation of drawback legislation, providing for repayment of excise duty, arising for example when excise goods are exported or destroyed, under the Excise Goods (Drawback) Regulations 1995.