Introduction Details of the Section
2.Subsection (1) introduces the amendments to section 139 of CEMA.
3.Subsection (2) inserts new subsections (1A) and (1B) after section 1 of s139 of CEMA.
4.New subsection (1A) provides for an officer to detain anything if they have reasonable grounds to suspect that it is liable to forfeiture.
5.New subsection (1B) explains that a thing detained as liable to forfeiture has the same meaning as that in subsection 1A.
6.Subsection (3) removes references to an ‘office of customs and excise’, as these premises no longer exist following the merger of HM Revenue & Customs (HMRC). It replaces that expression with the expression ‘officer’ which will include HMRC officers and those who work for the UK Border Force.
7.Subsection (4) removes references to the ‘Commissioners’ and ‘office of customs and excise’. It replaces those references with the expression ‘officer’, which will include HMRC officers and those who work for the UK Border Force.
8.Subsection (5) provides for goods that are detained to be dealt with under section 139(5) of CEMA. This allows the goods to be disposed of in a suitable manner.
9.Subsection (6) explains that a new Schedule 2A provides for supplementary provisions.
10.Subsection (7) inserts the new Schedule 2A to CEMA.
11.New schedule 2A provides for supplementary provisions relating to the detention of things as liable to forfeiture.
12.New paragraph 1 explains that a reference to a ‘thing’ being detained is the same as any other references in the Customs & Excise Acts.
13.New paragraph 2 provides for the period of detention.
14.New paragraph 2(1) applies the period of detention where a thing is detained under the new provisions.
15.New paragraph 2(2) provides for a period of detention of 30 days, beginning on the day that the thing is first detained.
16.New paragraph 2(3) provides that, at the end of the 30 day period, the thing will be deemed to be seized as liable to forfeiture unless it is released.
17.New paragraph 3(1) provides that the Commissioners must take reasonable steps to provide a notice of detention to the owner of anything detained.
18.New paragraph 3(2) (a), (b) and (c), detail the circumstances in which the Commissioners do not need to provide a notice of detention.
19.New paragraph 3(2)(a) states that notice need not be given if the person suspected of the offence, leading to the seizure, is present when the goods are detained.
20.New paragraph 3(2)(b) states that notice need not be given if the owner, or the owners’ agent or servant is present.
21.New paragraph 3(2)(c) states that notice need not be given if the goods are detained on board a ship or aircraft and the master or commander are present.
22.New paragraph 4(1) provides for the circumstances under which goods can be detained and left at the place of detention with the agreement of a person defined as “the responsible person”.
23.New paragraph 4(2) defines “the responsible person”.
24.New paragraph 4(2)(a) defines the responsible person as the owner at the time the goods were detained, or that person’s agent or servant.
25.New paragraph 4(2)(b) defines a responsible person alternatively as the person that an officer believes to be the responsible person.
26.New paragraph 4(3) provides for penalties if the responsible person fails to prevent the detained goods from being removed from the place where they are detained. It makes provisions for a civil penalty under the Finance Act 1994.
27.New paragraph 4(4) provides that the disposal of any goods, detained at the place where first discovered, is unauthorised if not with the permission of an officer.
28.New paragraph 4(5)(a) provides for the penalty to be calculated on the duty value of the goods, whether that duty is due or not.
29.New paragraph 4(5)(b) applies section 9 of the Finance Act 1994 with modification to take account of this.
30.New paragraph 4(6)(a) and (b) provide that where things, which do not attract duty, are detained, the penalty will be based on the value of the thing at the time when it was first detained or £250, whichever is the greater.
31.New paragraph 5(1)(a) to (c) sets out the circumstances in which the paragraph applies.
32.New paragraph 5(1)(a) details that the paragraph applies when goods are detained at a revenue trader’s premises.
33.New paragraph 5(1)(b) details that the paragraph applies when the thing is liable to forfeiture.
34.New paragraph 5(1)(c) details that the paragraph applies when the goods are removed traders premises or disposed of.
35.New paragraph 5(2) provides for the Commissioners to seize from revenue traders’ premises, goods of an equivalent value to the thing, where paragraph 5(1) applies.
36.New paragraph 5(3) provides that revenue traders’ premises include any premises that are used to hold or store anything for the purpose of revenue traders’ trade. It does not matter who owns or occupies the premises.
37.Subsection (8) provides for the measure to take effect, in relation to things detained, on and after the date that Finance Act 2013 receives Royal Assent.