A new legal framework for excise and general arrangements has been introduced by the Council Directive 2020/262, repealing the previous Directive 2008/118/EEC, which will be in effect as of the 13th of February 2023 with transitional provisions applicable until end 2023.
What is new?
- Introduction of duty paid licenses
Two new excise operator roles will be introduced for the procedure to move B2B duty paid goods to another Member State for commercial purposes: (a) certified consignee and (b) certified consignor. The certified consignee will be able to receive excise goods in duty paid status, while the certified consignor will be able to dispatch excise goods released for consumption (i.e. the excise duties paid) to another Member State.
- Digitalization of B2B duty paid transactions via EMCS
The paper based Simplified Administrative Document (SAD) currently used for the duty paid movements, will cease to exist as from the 13th February 2023 and will be replaced by an electronic Simplified Administrative Document (e-SAD). Certified consignors will need to submit an e-SAD to the Member State of dispatch by using the Excise Movement and Control System (EMCS).
Some Member States have indicated that they are not yet ready for the implementation of the e-SAD. One of such countries is The Netherlands, which will implement a temporary solution in two phases: (a) an automated procedure using a converter for the duty suspended trade flows and (b) a paper-based emergency procedure for duty paid trade flows. The Netherlands currently expects to be able to apply the Directive by the 1st of October 2023 at the latest, after which the temporary solution will lapse. Belgium on the other hand has indicated to be ready for the EMCS 4.0 roll out and the required license types will be available as of the 13th of February 2023.
- Introduction of a common partial loss threshold
The new Directive also introduces a common partial loss threshold for goods under the duty suspension arrangement. A partial loss won’t be considered as a release for consumption if the total amount of loss falls below a common partial loss threshold. Delegated acts will be adopted by the Commission in order to establish the common thresholds based on different factors such as the nature of the goods, the physical and chemical characteristics of the goods, the ambient temperature existing during the movement and the distance or time consumed during the movement. In case of absent common partial loss threshold, national provisions will continue to be applied by the Member States.