Source: http://paclii.org/vu/legis/num_act/ea200280/
Timestamp: 2020-01-20 05:57:40
Document Index: 101788907

Matched Legal Cases: ['ART 2', 'ART 5', 'ART 6', 'art 3', 'art 5', 'art 8']

You are here: PacLII >> Databases >> Vanuatu Sessional Legislation >> Excise Act 2002
NO 24 OF 2002
3	Importer of excisable products to comply with Customs legislation etc.
6	Delegation
7	Bonded warehouse
8	Licence requirements
9	Application for licence
10	Grant of licence
11	Period and renewal of licence
12	Transfer of licence
13	Cancellation of licence
14	Removal of products on cancellation etc. of licence
15	Removal of products by Director on cancellation etc. of licence
16	Fresh security
17	Alterations, additions or rebuilding of licensed production centre
18	Supervision by officers
19	Licensed producer to keep records
20	Director may give directions
21	Imposition and rate of excise tax
22	Payment of excise tax
23	Exemption from excise tax
24	Entry of home use etc.
25	Customs control
26	Removal of excisable products
27	Storage of excisable products
28	Safe custody of excisable products
29	Deficiency in excise tax
30	Permission to deliver certain products for home use without entry
31	Permission to remove products subject to Customs control without entry
32	Refunds
33	Recovery of excise tax
34	Statute of limitation
35	Relief from tax
36	Set off
37	Deposit of excise tax
38	Review of decisions
39	Access to licensed production centres
40	Power to enter and search with warrant
41	Stopping and search of aircraft, vehicles and vessels
42	Examining of products and plant
43	Power to search a person and the person’s baggage
44	Samples
45	General power to inspect records
46	Seizure and forfeiture of products
47	Notice of seizure
48	Prevention of seizures
49	Reasonable cause for seizure a bar to action
50	Evasion of excise tax
51	Failing to provide information and keep records
52	False statements
53	Obstruction of officers etc.
54	Bribery and collusion
55	Aiding and abetting
56	Conduct by directors, servants or agents
57	Spoilt alcohol products
58	Consumption of alcohol products
59	Stills
60	Blended petroleum products
61	Sale by Director
62	Indemnity
63	Transitional provision
SCHEDULE 1-	EXCISABLE PRODUCTS TABLE
SCHEDULE 2-	EXEMPTIONS TABLE
alcohol product means any alcohol product classified under Chapter 22 of the Harmonized System.
approved form means a form approved in writing by the Director.
blended petroleum product means the product of the blending of a petroleum product (including a petroleum product that is itself a blended petroleum product) with another substance or other substances, whether that other substance or those other substances are petroleum products or not.
bonded warehouse means:
(b)	premises referred to in subsection 10(4); or
(c)	a bonded warehouse within the meaning of the Customs Act No. 15 of 1999.
Customs means the Department responsible for customs.
Director means the Director of Customs.
excisable products means products in respect of which excise tax is imposed by this Act.
excise tax means the excise tax imposed by this Act.
Harmonized System means the Harmonized System set out in Schedule 1 to the Import Duties (Consolidation) Act [CAP 91] as amended from time to time, and includes the General Rules for the Interpretation of the Harmonized System set out in that Schedule as amended from time to time.
home use of a product means the use or consumption of the product in Vanuatu.
import duty means a duty levied under the Import Duties (Consolidation) Act [CAP 91].
licence means a licence to produce excisable products.
licensed producer means a person granted a licence under section 10 to produce excisable products.
licensed production centre means the premises on which a person is licensed to produce excisable products, and includes:
(a)	any bonded warehouse deemed to be a part of those premises under subsection 10(4); and
(b)	all adjoining premises connected with that production or with the business of the producer.
(a)	a person who is a Customs officer within the meaning of the Customs Act No. 15 of 1999; or
(b)	any person authorised by the Director to carry out or undertake functions or duties of an officer for the purposes of this Act.
person includes an individual, any statutory body, company or association of persons corporate or unincorporated.
petroleum product means any product classified under Chapter 27 of the Harmonized System.
production includes all processes in the production of excisable products.
records means all papers, books, registers, computer or electronic files, tapes, discs, films, videos, sound tracks or any other devices in which information is recorded or stored.
regulations means the regulations made under this Act
still means any apparatus used for carrying out the distillation of alcohol products.
tobacco product means any product classified under Chapter 24 of the Harmonized System.
(1)	To avoid doubt, the importer of excisable products must comply with the requirements of the Customs Act No. 15 of 1999 and the Import Duties (Consolidation) Act [CAP 91] and any subordinate legislation made under those Acts.
(1)	The Director is responsible for the general administration of this Act.
(2)	The Director has the right to require and take securities for the purpose of compliance with this Act.
(1)	If a security is required by or under this Act, the Director must specify how it is to be given.
(2)	The ways in which a security can be given are:
(c)	by cash deposit; or
(d)	partly by one such method and partly by another.
PART 2 - LICENSING AND RESPONSIBILITY OF PRODUCERS
8	Licence requirement
(4)	If a licence is granted and the application for the licence included premises to be used as a bonded warehouse under paragraph 9(2)(d), those premises (whether or not a part of or separate from the production centre) are deemed to be a part of the production centre for the purposes of this Act.
17	Alterations, additions or rebuilding of licensed production centres
(a)	in the case of an individual - a fine not exceeding VT 100,000 or a term of imprisonment of not more than one year, or both; or
24	Entry for home use etc.
(5)	If it is intended to export excisable products, the exportation of those products must be dealt with under the Customs Act No. 15 of 1999, but such products remain under Customs control in accordance with section 25.
Storage of excisable products
If a person who has the possession, custody or control of excisable products that are subject to the control of the Customs:
(b)	the excisable products produced in the relevant licensed production centre and entered under paragraph 24(1)(b);
Permission to deliver certain products for home use without entry
(1)	The Director may give permission in writing to a person specified in the permission to remove for home use from a place specified in the permission products of a specified kind that are subject to the control of Customs, without an entry for home use under paragraph 24(1)(a).
(a)	an entry for home use under paragraph 24(1)(a) for those products; and
Permission to remove products subject to Customs control without entry
(1)	The Director may give permission in writing to a person specified in the permission to remove products of a kind specified in the permission that are subject to the control of the Customs from a place specified in the permission to another specified place, without an entry under paragraph 24(1)(b), (c) or (d).
(a)	an entry under paragraph 24(1)(b), (c) or (d) (whichever applies); for those products; and
(5)	If, in relation to the removal of any products, a person to whom permission has been given under subsection (1), fails to comply with a requirement specified in the permission or subsection (3) the person is guilty of an offence punishable upon conviction by a fine of not more than VT 1 million or a term of imprisonment not exceeding 2 years, or both.
PART 5 –REFUNDS, RECOVERY, DISPUTES AND REVIEW
(4)	No amount in excess of VT 150,000 is to be refunded under this Act except with the approval of the Director General of the Ministry responsible for finance.
(2)	If the Director, after consultation with the Director General of the Ministry responsible for finance, is satisfied that the unpaid tax is irrecoverable, the Director may write off the unpaid tax.
PART 6 –POWERS OF OFFICERS
(3)	If a direction under paragraph (2)(b) is not complied with, an officer may do what is necessary to give effect to the direction or to arrange for it to be done.
(1)	An officer may stop, and search any person if the officer has reasonable grounds to suspect that there may be:
(1)	An officer may at any reasonable time take a sample of:
(2)	Any sample is to be dealt with and disposed of by any officer in a manner determined by the Director.
(3)	A person must not charge any officer for a sample taken under subsection (1).
(2)	An officer may for the purpose of any inspection under this section require any person:
(a)	to give all reasonable assistance in the inspection; and
(b)	to answer all proper questions relating to any such inspection either orally, or, if an officer so requires, in writing, or by statutory declaration, and for that purpose may require the person to attend at such premises as nominated by the officer.
(4)	A person who fails to comply with paragraph (2)(a) or (b) is guilty of an offence punishable on conviction by a fine not exceeding VT 1 million, or imprisonment for a term not exceeding 2 years, or both.
(a)	excisable products that are, or that an officer has reasonable cause to believe are, produced, or partly produced, by a person who is not a licensed producer;
(b)	all products that are, or that an officer has reasonable cause to believe are, used, or capable of being used, in the production of excisable products and that are found on premises that are not a licensed production centre;
(c)	all excisable products subject to the control of Customs that are taken possession of, moved, altered or interfered with except as authorised by or in accordance with this Act;
(d)	all packages in which seized products are contained;
(e)	all aircraft, vehicles and vessels conveying any products referred to in paragraph (a),(b) or (c), or any packages referred to in paragraph (d).
(1)	An officer must give written notice of the seizure of any product to the owner of the product.
(2)	All seized products must be moved to such place as the Director directs.
(3)	The Director may sell or dispose of any seized product in accordance with section 61 unless the person from whom the products were seized or the owner gives written notice to the Director that he or she claims them within one month after the date of the seizure.
(4)	If a claim has been made for the seized products, the Director:
(a)	may retain possession of the products; and
(b)	must give the claimant written notice requiring the claimant to take proceedings against the Director for the recovery of the products.
(5)	If the claimant does not, within 4 months after the date of the notice, commence legal proceedings for the recovery of the products, the Director may sell or otherwise dispose of the products without further notice to any person.
(a)	evades payment of any excise tax which is payable; or
(e)	in the case of an individual - a fine not exceeding VT 1 million, or imprisonment for a term not exceeding 2 years, or both; or
(2)	In the case of an offence against paragraph (1) (a) or (b), the court may in addition to any penalty under subsection (1) impose a fine not exceeding 5 times the amount of excise tax evaded or the refund obtained and not less than 2 times that amount.
(i)	makes a statement to an officer that is false or misleading in a material particular; or
(ii)	omits from a statement made to an officer any matter or thing without which the statement is misleading in a material particular; or
(2)	In the case of an offence against paragraph (1)(a), in relation to a statement made, or an omission from a statement made, in respect of the amount of excise tax payable on particular products, the court may, in relation to that offence, impose an additional penalty not exceeding twice the amount of the excise tax payable on those products.
53	Obstruction of officers etc
(a)	obstructs, hinders or impedes any officer in the performance of his or her duties or a person assisting the officer; or
(b)	threatens or intimidates, or attempts to intimidate any officer in the performance of his or her duties or a person assisting the officer;
(b)	proposes or enters into any agreement with the officer ;
in order to induce him or her to do, or abstain from doing, permit or conceal any act intended to defraud the Government, or is otherwise unlawful under this Act or any other law, is guilty of an offence punishable on conviction by a fine of not more than VT 1 million or imprisonment for not more than 2 years, or both.
(3)	Any conduct engaged in on behalf of a body corporate by any other person at the direction or with the consent or agreement (whether express or implied) of a director, servant or agent of the body corporate, where the giving of the direction, consent or agreement is within the scope of the actual or apparent authority of the director, servant or agent is deemed, for the purposes of this Act , to have been engaged in also by the body corporate
(1)	Alcohol products must not be consumed in a licensed production centre or a bonded warehouse unless an entry for home use for the products has been made under paragraph 24(1)(a) or a permission in relation to the products has been given under section 31.
(1)	Products and packages which the Director is authorized to sell (“sale products”) under this Act must not be sold except by auction or by tender
and after such public notice as is approved by the Director.
(d)	unless the products are sold subject to excise tax , in payment of the excise tax on the products;
(1)	This section applies to a person producing excisable products immediately before the commencement of this Act (“existing producer”).
Other fermented alcoholic beverages and mixtures eg Ciders
250 Vt/litre
700 Vt/litre
Liquer less than 10% by volume of alcohol
Liquers 10 to 37% by volume of alcohol
Liquers greater than 37% by volume of alcohol
5 Vt/l
Excisable products produced in Vanuatu, being products that would have been eligible for an exemption from duty under Schedule III of the Import Duties (Consolidation) Act [CAP. 91] had the products been imported, but subject to the conditions in that Schedule being complied with.
Excisable products imported into Vanuatu that are exempt from duty under Schedule III of the Import Duties (Consolidation) Act [CAP. 91], other than diesel fuels imported under Exemptions X7 of that Schedule.
Excisable products produced in Vanuatu, being products that would have been eligible for a reduction in duty under Schedule III of the Import Duties (Consolidation) Act [CAP. 91] had the products been imported, but subject to the conditions in that Schedule being complied with.
Excisable products imported into Vanuatu that are eligible for a reduction in duty under Schedule III of the Import Duties (Consolidation) Act [CAP. 91], other than diesel fuels imported under Exemption X7 of that Schedule.
Excisable products produced or imported into Vanuatu that are to be used exclusively in the production of other excisable products in Vanuatu and for which an approval has been obtained under subsection 23(2).
EXCISE ACT NO 24 OF 2002
The Excise Bill has been drafted to give effect to a new tax regime in Vanuatu. Excise taxes will apply to certain alcohol, tobacco and petroleum products produced in or imported into Vanuatu. Excise taxes will be imposed in addition to any Customs duties or other taxes that may already be levied on the products.
The Excise Bill will provide the Government with similar control over products imported and products locally produced, as is currently imposed by the Customs Act on products imported. In most situations the two Acts will work in a complementary manner providing powers to control the movement of goods and to collect revenue.
On introduction of the Excise Bill, the current Beer Act will be repealed. The Import Duties Act will also be amended to reflect a lowering of certain import duties upon imposition of excise taxes. Minor amendments to the Value Added Tax Act will also be made.
The Excise Bill when passed will provide Vanuatu with a modern Excise Act. Its design allows for easy introduction or deletion of products being subjected to the tax and easy rate changes.
The collection of excise tax will be administered by the Customs Department.
This Part defines important terms in the Bill and contains preliminary matters such as who administers the Act, the application of the Act, the need for securities and the power to delegate certain responsibilities. Important definitions include “Harmonized System”, “Home Use” and “Licensed Production Centre”.
This part requires local producers to be licensed in order to produce excisable products and sets out such licensing requirements. These licensing requirements also extend to bonded warehouses. This Part also provides powers to the Director to cancel licences and deal with products in those premises on cancellation of the license. This Part also places responsibilities on producers and gives the Director powers to supervise or make directions concerning the manufacture of excisable products in licensed production centres.
Part 3 - Imposition, rate and payment of Excise Tax and Exemptions
This Part contains the provisions that impose the excise tax, specify the rates of tax and when such tax is payable and by whom. The products on which excise tax is imposed are identified by reference to the Excisable Products Table in Schedule 1 of the Bill. The rate of excise tax applying to excisable products is also set out in that Table. This Part also provides for exemptions from excise tax which are set out in the Exemptions Table in Schedule 2. An exemption number will be quoted when products are “entered” using the exemption.
This Part deals with the controls placed on excisable products by Customs. Excisable products, once manufactured or imported remain under Customs control until they have the excise tax paid on them or they are exported. In order to control the movement of excisable products, Customs have introduced the concept of an “Entry”. In Vanuatu, the “Entry” will be a Single Administrative Document (SAD) which can be prepared manually or input directly into the Customs “ASYCUDA” IT system. Once the document is approved by Customs, it permits the excisable products to be legally dealt with by removal from bond for home use or export, or allows transfer into and between bonds. It is also the document by reference to which the excise tax is collected.
This Part also contains provisions allowing the Director to give permission to specified persons to move or deliver excisable products, under the control of Customs, without entry, subject to certain conditions. This concession will permit compliant producers and importers, to lodge periodic returns under a self assessment regime.
Part 5 – Refunds, Recovery, Disputes and Reviews
This Part makes provisions for refunding excise tax paid in excess and recovery of underpaid tax. It also contains provisions to deal with disputes over the amount of excise tax to be paid and contains a review mechanism to appeal certain decisions made by the Director in relation to this Act.
This Part provides officers with significant powers under the Excise Act. These powers include:
to have access to production centres;
to enter and search with warrant, subject to certain conditions;
to stop and search aircraft, vehicles and vessels, subject to certain conditions.
to have access to, and powers to inspect and copy, all records necessary or relevant for the collection of the correct amount of excise tax.
This Part contains provisions for the seizure and forfeiture of products. It also contains a range of penalty provisions covering breaches of the Act. Offences include where evasion of excise tax occurs, refunds are wrongly claimed, excisable products are bought or sold when excise tax has been evaded, and purchase or sale of excisable products unlawfully removed from a licensed production centre. Penalties are also provided for failing to keep records or provide certain information.
Part 8 – Special Provisions in relation to certain Excisable Products.
This Part provides for special provisions relating to the various excisable products that are subject to excise tax.
This Part covers miscellaneous matters and includes provisions for the sale of products authorized to be sold by the Director under the Act, transitional provisions applying to the Act, a power to make regulations and the commencement which is 1 January 2003.
Schedule 1 – Excisable Products Table.
This Schedule lists the excisable products and the rates of excise tax.
Schedule 2 – Exemptions Table.
This Schedule list exemptions to excise tax.
URL: http://www.paclii.org/vu/legis/num_act/ea200280