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You are here: BAILII >> Databases >> United Kingdom Statutory Instruments >> The Denatured Alcohol Regulations 2005 No. 1524 URL: http://www.bailii.org/uk/legis/num_reg/2005/20051524.html

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Revocation
     3. The Iso-Propyl Alcohol Regulations 1927[5] and the Methylated Spirits Regulations 1987[6] are revoked.

(a) that has been made in accordance with regulation 5, or

(b) that, if the denaturants that are employed are described in the Annex to Commission Regulation (EC) No. 3199/93[7], has been made in a member State other than the United Kingdom in accordance with a formulation and other requirements of that member State.

    (3) Subject to paragraphs (4) and (6), industrial denatured alcohol is denatured alcohol—

(a) that has been made in accordance with regulation 6, or

(b) that is not completely denatured alcohol and—


(i) has been made in a member State other than the United Kingdom in accordance with a formulation and other requirements of that member State, and

(ii) has been incorporated into a product that is not for human consumption.

    (4) Denatured alcohol made in a member State other than the United Kingdom is not denatured alcohol for the purposes of the Act, section 5 of the Finance Act 1995 or these Regulations if—

(a) the United Kingdom has, in accordance with Article 27(5) of Council Directive 92/83/EEC[8], advised the European Commission that it gives rise to evasion, avoidance or abuse, and

(b) it has not been determined, in accordance with the procedure laid down in Article 24 of Council Directive 92/12/EEC[9], that that denatured alcohol must be treated as exempt from excise duty under sub-paragraph (a) or (b) of Article 27(1) of Council Directive 92/83/EEC.

    (5) Subject to paragraph (6), trade specific denatured alcohol is denatured alcohol that has been made in accordance with regulation 7.

    (6) Denatured alcohol made outside the United Kingdom that has not been incorporated into a product that is not for human consumption is completely denatured alcohol, industrial denatured alcohol or trade specific denatured alcohol (as the case may be) if, in the opinion of the Commissioners, it has been made as nearly as is possible in accordance with one of the formulations described in the Schedule.

    (7) Denatured alcohol made outside the United Kingdom and the Communities is completely denatured alcohol if, in the opinion of the Commissioners—

(a) the denaturants employed are described in the Annex to Commission Regulation (EC) No. 3199/93, and

(b) it has been made as nearly as is possible in accordance with a formulation of a member State other than the United Kingdom.

Completely denatured alcohol
     5. A producer making completely denatured alcohol must—

(a) make it in accordance with the formulation described in paragraph 1 of the Schedule, and

(b) comply with the standards and other requirements of paragraphs 5 to 11 of that Schedule.

Industrial denatured alcohol
     6. A producer making industrial denatured alcohol must—

(a) make it in accordance with the formulation described in paragraph 2 of the Schedule, and

(b) comply with the standards and other requirements of paragraphs 5 to 7 and 11 of that Schedule.

Trade specific denatured alcohol
     7. —(1) Subject to paragraph (2), a producer making trade specific denatured alcohol must—

(a) make it in accordance with a formulation described in paragraph 3 of the Schedule, and

(b) comply with the standards and other requirements of paragraphs 4 to 6 and 11 of that Schedule (insofar as those paragraphs are applicable to the formulation he is following).

    (2) Instead of following a formulation described in paragraph 3 of the Schedule, when making a batch of trade specific denatured alcohol a producer may make that batch in accordance with a formulation that is approved by the Commissioners under this regulation.

    (3) The Commissioners may, if they think that in all the circumstances it is appropriate to do so, approve a formulation different from or as a variation on a trade specific denatured alcohol formulation described in paragraph 3 of the Schedule.

    (4) The Commissioners' approval—

(a) may only be granted following a written application to them by a producer or other person ("the applicant"), and

(b) may be granted subject to such conditions as the Commissioners may reasonably impose,

and those conditions may be varied by the Commissioners for reasonable cause.

    (5) The Commissioners may require for the purposes of their consideration of the application made under paragraph (4)—

(a) a written statement containing the reasons why, in the applicant's opinion, completely denatured alcohol, industrial denatured alcohol, and a formulation of trade specific denatured alcohol described in paragraph 3 of the Schedule, would all be unsuitable or detrimental having regard to the use to which it is intended that the denatured alcohol will be put;

(b) samples of the proposed formulation of trade specific denatured alcohol and of the ingredients of that formulation; and

(c) any other information that the Commissioners determine to be material to their consideration of whether or not it would be appropriate for them to grant approval of the formulation in question.

(a) the Commissioners have, in accordance with this regulation, approved the process to be employed, and

(b) if so required by paragraph (7), entry has been made in accordance with section 108 of the Customs and Excise Management Act 1979[10] of each set of premises at which it is intended to make denatured alcohol.

    (4) The Commissioners' approval of the process to be employed—

(a) may be granted subject to such conditions as the Commissioners may reasonably impose, and

(b) those conditions may be varied by the Commissioners for reasonable cause.

    (5) A producer who has received the Commissioners' approval of the process to be employed must ensure that no other process is used and that the approved process is not varied without first receiving the Commissioners' approval of that other process or of that variation.

    (6) Paragraph (4) applies to any approval given under paragraph (5).

    (7) Except in the case of premises that are an excise warehouse, a producer must make entry of each set of premises at which he intends to make a class of denatured alcohol.

Producer's and distributor's account of goods and distributor's entry of premises
     9. —(1) In this regulation—

"distributor" means a person who—

(a) holds an excise licence for the purposes of section 75 of the Act[11],

(b) does not denature alcohol at any premises on which he holds denatured alcohol, and

(c) deals or intends to deal wholesale in denatured alcohol;

"goods" includes—

(a) any alcohol, denaturants, dyes, denatured alcohol, and

(b) any other goods on the premises described in paragraph (2)(a) by reason of those goods having been received, held, used or produced at those premises.

    (2) A producer and a distributor must—

(a) control the goods on any premises on which they produce or hold denatured alcohol;

(b) take an account of those goods, and take an account (at the time of dispatch) of any goods dispatched from those premises in such manner and to such extent as the Commissioners may require;

(c) immediately record in such form and manner as the Commissioners may require any deficiency, surplus or discrepancy in their stock of goods or shown in their records, and any explanation for that deficiency, surplus or discrepancy;

(d) in addition to recording the details required by sub-paragraph (c), inform the Commissioners, in accordance with their instructions, of the deficiency, surplus or discrepancy;

(e) keep and preserve such other records relating to their business as a producer or as a distributor as the Commissioners may specify in a notice published by them and not withdrawn by a further notice.

    (3) For the purposes of paragraph (2) the Commissioners may give instructions that the stock of goods to which a deficiency, surplus or discrepancy relates must not be moved or disturbed without their permission and if they do give instructions to that effect no person may move or disturb that stock of goods without their permission.

    (4) Requirements imposed under paragraph (2) and instructions given under paragraph (3) may apply differently to different circumstances and may be varied from time to time by the Commissioners.

    (5) A distributor must make entry in accordance with section 108 of the Customs and Excise Management Act 1979 of any premises on which he holds or intends to hold denatured alcohol.

Receipt of alcohol for denaturing
     10. —(1) The Commissioners may, subject to such conditions as they see fit to impose, permit alcohol to be delivered from an excise warehouse to the entered premises of a producer for denaturing without payment of excise duty.

In this paragraph "entered premises" means premises for which entry has been made in accordance with section 108 of the Customs and Excise Management Act 1979.

    (2) The power to impose conditions under paragraph (1) includes power to require such security for excise duty as the Commissioners think fit.

    (3) A producer who receives any alcohol of any description whatsoever from an excise warehouse must furnish the occupier of that excise warehouse with a receipt in such manner, within such period, and in such form, and containing such particulars, as the Commissioners may require.

Excise duty point
     11. —(1) Where, in accordance with regulation 9(2)(d) a producer is required to inform the Commissioners of a deficiency in his stock of alcohol for denaturing, the time that the deficiency was discovered is the excise duty point for the missing alcohol.

    (2) The producer is liable to pay the excise duty.

    (3) This regulation does not apply to a deficiency that is attributable to evaporation or destruction of the alcohol found to be missing.

    (5) Where there has been a change in any of the particulars that were included in a person's application for authorization, before receiving any further supplies of industrial denatured alcohol or trade specific denatured alcohol, he must give the Commissioners notice of that change in such form and manner as they require.

    (6) The Commissioners may at any time for reasonable cause vary or revoke any authorization granted or any condition or restriction imposed under this regulation.

    (7) A person may receive industrial denatured alcohol or any formulation of trade specific denatured alcohol only if, before he is supplied with that denatured alcohol, he furnishes the supplier with a copy of his authorization.

    (8) A person authorized under this regulation must keep and preserve such records relating to his use of denatured alcohol as the Commissioners may specify in a notice published by them and not withdrawn by a further notice.

    (9) A person authorized under this regulation must comply with and ensure compliance with any conditions or restrictions imposed in accordance with this regulation.

Supply of industrial denatured alcohol and trade specific denatured alcohol
     14. Subject to regulation 15, industrial denatured alcohol and trade specific denatured alcohol—

(a) must not be sent out from any premises other than in the course of a supply to a person—


(i) who is authorized in accordance with these Regulations to receive denatured alcohol of that formulation, and

(ii) who has furnished his supplier with a copy of his authorization to receive denatured alcohol of that formulation, and



(b) must not be supplied for any use that contravenes the restrictions on uses to which that formulation of denatured alcohol may be put by the person supplied.

Supply of industrial denatured alcohol and trade specific denatured alcohol - supplementary provisions
     15. —(1) Regulation 14 does not apply to any case where—

(a) the denatured alcohol is delivered to a place that is outside the United Kingdom and Isle of Man; or

(b) a pharmacist is sending out industrial denatured alcohol for medical use on the prescription or order of a medical or veterinary practitioner.

In this paragraph—

"pharmacist" has the meaning given in section 132(1) of the Medicines Act 1968[12];

"medical or veterinary practitioner" means a person entitled by law to provide medical or veterinary services in the United Kingdom;

"medical use" means any medical, veterinary, surgical or dental purpose other than administration internally.

    (2) A person is treated as authorized to receive denatured alcohol of a particular formulation in accordance with these Regulations if he receives that alcohol in the Isle of Man and is authorized in accordance with the laws of the Isle of Man to receive that alcohol.

    (3) In any case to which paragraph (2) applies the requirement contained in regulation 14(a)(ii) does not apply but the person intending to supply denatured alcohol must require the person to be supplied to provide a written statement specifying—

(a) the date upon which he was authorized to receive denatured alcohol of that formulation;

(b) the use or uses to which he intends to put that denatured alcohol;

(c) any conditions or restrictions imposed on him by his authorization to receive denatured alcohol; and

(d) the uses to which he is entitled to put the received denatured alcohol.

Disposal of stocks
     17. —(1) A producer, a distributor or other person authorized in accordance with these Regulations to receive, use, send out or supply any class of denatured alcohol—

(a) whose business is discontinued while he is holding stocks of denatured alcohol, or

(b) whose authority or licence for holding stocks of any class of denatured alcohol is revoked,

must within a reasonable time and to the satisfaction of the Commissioners dispose of any of those stocks in his possession.

    (2) Where the discontinuance of a business is caused by the death of a producer, distributor or other person described in the paragraph (1), his personal representatives must dispose of any stocks of denatured alcohol in his possession at the time of his death in the manner required by the paragraph (1).

    (3) In this regulation "distributor" means a person who holds an excise licence for the purpose of section 75 of the Act whether or not he is also a producer.

Importing and exporting denatured alcohol
     18. Unless it has been incorporated into a product that is not for human consumption, the Excise Goods (Accompanying Documents) Regulations 2002[13] shall apply to imports and exports of—

(a) completely denatured alcohol as if it were alcohol in respect of which excise duty has been paid, and

(b) any other denatured alcohol as if it were alcohol in respect of which excise duty has not been paid.

Amendment to the Spirits Regulations 1991
     19. In regulation 20 of the Spirits Regulations 1991[14], omit the words "methylated spirits".


D.A.Hartnett

Paul.R.C.Gray
Two of the Commissioners of Her Majesty's Revenue and Customs

8th June 2005

˜ completely denatured alcohol (CDA) (formerly mineralised methylated spirits or MMS);

˜ industrial denatured alcohol (IDA) (formerly industrial methylated spirits or IMS); and

˜ trade specific denatured alcohol (TSDA),

and prescribes the circumstances in which denatured alcohol produced in a member State other than the UK will not be treated as denatured alcohol.

Regulation 5 requires a producer making CDA to use the formulation specified in paragraph 1 of the Schedule.

Regulation 6 requires a producer making IDA to use the formulation specified in paragraph 2 of the Schedule.

Regulation 7 requires a producer making TSDA to use a formulation specified in paragraph 3 of the Schedule. However, it also provides a scheme enabling a producer to use a variation of, or a formulation different from, the TSDA formulations specified in paragraph 3 of the Schedule.

Regulation 8 prescribes the requirements and obligations that producers of denatured alcohol must comply with.

Regulation 9 regulates the activities of producers and distributors of denatured alcohol.

Regulation 10 regulates the receipt of alcohol for denaturing.

Regulation 11 prescribes an excise duty point where a stock of alcohol for denaturing is found to be missing.

Regulation 12 prescribes the circumstances in which Part 4 of the Regulations (regulations 12 to 15) applies. Part 4 regulates the receipt, use and supply of IDA and TSDA that has not been incorporated into products that are unfit for human consumption.

Regulation 16 prohibits the recovery of alcohol or other substances from denatured alcohol without approval.

Regulation 17 governs what must be done with stocks of denatured alcohol in the event of the discontinuance of a business or the death of the producer, distributor or other persons authorized in accordance with the Regulations.

Regulation 18 applies the Excise Goods (Accompanying Documents) Regulations 2002 (S.I. 2002/501) to imports and exports of denatured alcohol.

Regulation 19 makes an amendment to the Spirits Regulations 1991 (S.I. 1991/2564).

The Schedule, besides describing the formulations, contains provisions governing various standards, including proportions, for the ingredients that may be used in making denatured alcohol.

The Determination of Distillation Characteristics of Volatile Organic Liquids (IP 195/98(2004)) (BS 2000-195:1998) (ISBN 0 580 34274 3) is published and sold by:

     Energy Institute

     61, New Cavendish Street

     LONDON

     W1G 7AR

Copies can also be obtained from any of the sales outlets operated by the British Standards Institution or by post from the British Standards Institution in London.

The Colour Index of the Society of Dyers and Colourists is published on the Internet. Subscriptions can be purchased from The Society of Dyers and Colourists at [email protected].

[2] 1979 c.4; section 35 was amended by the Finance Act 1994(c.9), Schedule 4, paragraph 28; section 77 was amended by the Finance Act 1981(c.35), Schedule 8, paragraph 23, the Finance Act 1994, Schedule 4, paragraph 46 and the Finance Act 1995(c.4), Schedule 2, paragraphs 5 and 6; section 1(1) defines "dutiable alcoholic liquor"; section 4(1) defines "compounder", "denatured alcohol", "distiller", and "rectifier"; section 4(2) provides for the Alcoholic Liquor Duties Act 1979 to be construed as one with the Customs and Excise Management Act 1979(c.2) and section 4(3) applies the definitions in that Act; section 1(1) of the Customs and Excise Management Act 1979 defines "the Commissioners" (as meaning the Commissioners of Customs and Excise), "excise duty point", "excise warehouse" and "occupier". The functions of the Commissioners of Customs and Excise were transferred to the Commissioners for Revenue and Customs by section 5(2) of the Commissioners for Revenue and Customs Act 2005 (c.11). Section 50(1) of that Act provides that a reference to the Commissioners of Customs and Excise shall be taken as a reference to the Commissioners for Her Majesty's Revenue and Customs.back

[3] 1992 c.48.back

[4] 1995 c.4; section 5(8) provides for section 5 to be construed as one with the Alcoholic Liquor Duties Act 1979(c.4); section 4(2) of the Alcoholic Liquor Duties Act 1979 provides for that Act to be construed as one with the Customs and Excise Management Act 1979(c.2) and section 4(3) applies the definitions in that Act; section 1(1) of the Customs and Excise Management Act 1979 defines "the Commissioners" as meaning the Commissioners of Customs and Excise. The functions of the Commissioners of Customs and Excise were transferred to the Commissioners for Revenue and Customs by section 5(2) of the Commissioners for Revenue and Customs Act 2005 (c.11). Section 50(1) of that Act provides that a reference to the Commissioners of Customs and Excise shall be taken as a reference to the Commissioners for Her Majesty's Revenue and Customs.back

[5] S.R. & O. 1927/783.back

[6] S.I. 1987/2009.back

[7] OJ No L288, 23.11.1993, p.12 on the mutual recognition of procedures for the complete denaturing of alcohol for the purposes of exemption from excise duty; amended by Commission Regulation (EC) No. 2546/95 (OJ No. L260, 31.10.1995, p.45) and Commission Regulation (EC) No. 2559/98 (OJ No. L320, 28.11.1998, p.27).back

[8] OJ No. L 316, 31.10.1992, p.21, to which there are amendments not relevant to these Regulations.back

[9] OJ No. L76, 23.3.1992, p.4, to which there are amendments not relevant to these Regulations.back

[10] 1979 c.2; section 108 was amended by the Finance Act 1994(c.9), Schedule 4, paragraph 7.back

[11] Section 75 was amended by the Finance Act 1995(c.4), Schedule 2, paragraph 5 and by S.I. 1979/241, article 33; subsection (7) provides that dealing wholesale means the sale at any one time to any one person of a quantity of denatured alcohol of not less than 20 litres, or such smaller quantity as the Commissioners may by regulations specify.back

[12] 1968 c.67; the definition of the term "pharmacist" was amended by S.I. 1976/1213.back

[13] S.I. 2002/501.back

[14] S.I. 1991/2564.back

 © Crown copyright 2005