Manufacturers, packagers and importers of cider and perry and any other person holding such products. General description of the measure 2. This measure provides power to make regulations regarding operations and processes performed on cider and perry. It addition to regulating such activities, it will enable Customs to prohibit any operations after the duty point which would, if they had been carried out before the duty point, have resulted in a greater amount of duty being payable on the finished product. Cider dilution affords a means of duty avoidance.
Cider is dutied in bands according to strength.
Dilution is the practice where cider is produced at the top end of a band, duty is paid on that volume but then the cider is diluted to decrease its strength but increase its volume. This effectively reduces the duty liability on the volume of finished product. Customs intend using this new power to prevent this practice and to combat any similar practices. Operative date 4. The changes will come into effect from Royal Assent to the Finance Bill 2001.