S.I. No. 275/1987:

VALUE-ADDED TAX (FREE PORTS) REGULATIONS, 1987

VALUE-ADDED TAX (FREE PORTS) REGULATIONS, 1987

The Revenue Commissioners, in exercise of the powers conferred on them by sections 15 and 32 of the Value-Added Tax Act, 1972 (No. 22 of 1972), and with the consent of the Minister for Finance, hereby make the following Regulations:

1. These Regulations may be cited as the Value-Added Tax (Free Ports) Regulations, 1987.

2. These Regulations shall be deemed to have come into operation on the 24th day of July, 1987.

3. In these Regulations--

"the Act" means the Value-Added Tax Act, 1972 ;

"control" has the meaning ascribed to it by section 8(3B) (inserted by the Finance Act, 1984 (No. 9 of 1984)) of the Act.

4. (1) Subject to paragraph (2) of this Regulation, goods that are imported by a registered person may be delivered, or removed, directly to a free port without payment of the tax chargeable on the importation if that person complies with--

( a ) the condition that he shows to the satisfaction of the Revenue Commissioners that--

(i) he is a person who has, under section 4 of the Free Ports Act, 1986 (No. 6 of 1986), been granted a licence authorising him to carry on within that free port any trade, business or manufacture and

(ii) the goods are being imported for the purposes of his trade, business or manufacture in that free port,

and

( b ) such other conditions as the Revenue Commissioners may impose.

(2) This Regulation shall not apply to the importation of food, drink, motor vehicles or petrol except where tax on the importation of those goods would, if it were paid, be wholly deductible under section 12 of the Act.

5. (1) Without prejudice to paragraph (2) of this Regulation, goods, which have been imported by a registered person without payment of the tax chargeable on the importation in accordance with Regulation 4 of these Regulations, may not be removed from the free port concerned to any other part of the State (other than into another free port or the customs-free airport), in circumstances in which such removal is not in relation to a supply of those goods or, if it is in relation to a supply of those goods, is in relation to a supply to a person who exercises control over the registered person, or over whom the registered person exercises control, or over whom and the registered person another person exercises control.

(2) ( a ) The removal of goods, precluded by paragraph (1) of this Regulation, may be allowed, with the prior agreement in writing of the Revenue Commissioners, in such exceptional cases as may be determined by them in their absolute discretion.

( b ) Where, by virtue of this paragraph, the removal of goods is allowed, tax which would, but for these Regulations, have been payable on the importation of the goods, shall be payable at the time of the removal by the registered person specified in paragraph (1) of this Regulation.

6. Where goods have been imported by a registered person without payment of the tax chargeable on the importation in accordance with Regulation 4 of these Regulations, details of the goods, including the value by reference to each rate of tax (including the zero rate) shall, if so required, be included in the return for the taxable period during which the importation took place required to be furnished by that person under section 19 of the Act and the regulations made thereunder.

7. Where, in the opinion of the Revenue Commissioners, a person does not, or has ceased to, satisfy a condition referred to, or specified, in Regulation 4 of these Regulations, or has failed to comply with Regulation 5 or 6 of these Regulations, the Revenue Commissioners shall send to such person by post notification of their opinion and the relief provided for by the said Regulation 4 shall not apply in relation to goods imported by that person during the period from the date on which such notification would be delivered in the ordinary course of post until the time when the person concerned shows to the satisfaction of the Revenue Commissioners that he intends to comply with the conditions referred to, or specified, in the said Regulation 4 and with the said Regulations 5 and 6.

GIVEN this 7th day of October, 1987.

L. REASON,

Revenue Commissioner.

The Minister for Finance hereby consents to the making of the foregoing Regulations.

GIVEN under the Official Seal of the Minister for Finance, this 7th day of October, 1987.

RAY MAC SHARRY,

Minister for Finance.

EXPLANATORY NOTE.

These Regulations, which have effect from 24 July, 1987, are concerned with the relieving from payment of VAT at importation of goods for use in a free port established in accordance with the Free Ports Act, 1986 .

To qualify for the relief an importer must--

( a ) be registered for VAT,

( b ) be licensed to carry on business in the free port, and

( c ) import the goods for the purposes of his business in the free port.

The relief does not extend to imports of food, drink, motor vehicles or petrol except in circumstances where, but for these Regulations, tax paid on such imports would have been deductible by the VAT registered importer. Goods on which the relief has been allowed on import may not be merely transferred to another premises of the same business (or associate business) in the State except in special cases.

The importations must be accounted for in the normal VAT return by entering details of the goods concerned under the various VAT rates.

Where the requirements of the Regulations are not, or cease to be, met in any case, the Revenue Commissioners are empowered to withhold, or withdraw the relief until such time as they are satisfied that the importer intends to comply with such requirements.