Article 12 - Release of Excise Goods for Consumption

Excise Goods are released for consumption where any of the following has occurred:

1. production of Excise Goods in the State, or

2. release of Excise Goods from a Designated Zone and enter such Excise Goods into free circulation.

For the purposes of paragraph (a) of Clause 1 of this Article, Excise Goods shall be treated as produced at such time as the Excise Goods reach a stage where they are:

1. ready to be held out for retail sale,

2. fit for consumption or sale where the Excise Goods are not intended for retail sale, or

3. ready to be sold to a retailer, if the Excise Goods are of the type which are not fit for consumption until they are combined with another product at the point of retail sale.

For the purposes of paragraph (b) of Clause 1 of this Article, Excise Goods shall be treated as leaving a Designated Zone and enter free circulation at the occurrence of any of the following:

1. the Excise Goods leave a Designated Zone, unless they are moved to another Designated Zone without being released for consumption or will be exported in accordance with [the provisions specified in Article 14 of this Decision],

2. they are consumed or bought for consumption within a Designated Zone,

3. there is an irregularity in the course of a transfer of Excise Goods between Designated Zones which resulted in Excise Goods being released for consumption, or

4. they are found to be deficient or there is shortage in their quantity from a Designated Zone or during transfer between Designated Zones or whilst held in a suspension arrangement in accordance with the Customs Legislation.

'Irregularity' in paragraph (c) of Clause 3 of this Article, means a situation occurring during a transfer of Excise Goods from one Designated Zone to another where those Excise Goods are not transferred in accordance with the conditions specified under this Decision, or the Excise Goods were lost or destroyed.

As an exception to paragraph (d) of Clause 3 of this Article, release of Excise Goods for consumption is not deemed to have occurred if:

1. [there is a deficiency or shortage in the Excise Goods in the Designated Zone where the Warehouse Keeper responsible for the Excise Goods notified the Authority within (30) thirty days of discovering that and the deficiency or shortage in the Excise Goods is due to a justified cause accepted by the Authority, or]

2. [there is a natural shortage in the quantity of Excise Goods in a Designated Zone, where all of the following conditions are met:

   1. the shortage is as a result of the natural characteristics of the good and meets the standards and controls specified by the Authority,

   2. the owner of the Excise Goods and the Warehouse Keeper notify the Authority of the shortage resulting from natural characteristics, in accordance with the procedures and mechanisms approved by the Authority in this regard, and

   3. the owner of the Excise Goods and the Warehouse Keeper keep documents proving the shortage resulting from the natural characteristics of the goods and submit them to the Authority upon request.]

[In addition to what is stated in paragraph (a) of Clause 5 of this Article, Excise Goods may be permanently destroyed after obtaining the Authority's approval.]

For the purposes of Clause 6 of this Article, if the Authority does not direct that the deficient Excise Goods must be retained for inspection, they may be destroyed after (30) thirty days have lapsed following the date of notifying the Authority.

If, during the period specified in [Clause 7] of this Article, the Authority gives the Warehouse Keeper notice to inspect the Excise Goods, the Warehouse Keeper shall keep the deficient Excise Goods until such time as the Authority has inspected them and given permission for their destruction to take place.