Transportation package - extension of the monitoring obligation to include vegetable oils and animal fats
Excise Duty Express 05/2017 | 21 March 2017
On 20 March 2017 the Government Centre of Legislation published on its website a draft regulation of the Minister of Development and Finance concerning the goods the transport of which is covered by the road monitoring system. According to the provisions of the draft, cooking oils will inter alia, fall within the scope of the monitoring obligation requirements. Implementation of these provisions may substantially extend the entities covered by the transportation package to include a great number of foodstuff, industrial and commercial companies that trade in the aforementioned goods as part of their business operations.
Wide scope of monitored goods
The provisions of the new regulation prescribe that the road monitoring system should apply to the goods classified under CN items 1507 - 1517 or PKWiU subcategories 10.41.21 - 10.41.60, 10.42.10 and 10.62.14. Hence, the range of goods covered by the regulation is very wide - it includes inter alia, vegetable oils made from sunflower seeds, rapeseed, olives, and peanuts, soya oils, animal fats and oils, margarines and edible mixes or products made from fats, vegetable oils or animal oils.
As in the case of the goods listed in the Act of law, in principle, transits with the gross weight/ capacity exceeding 500 kg/ 500 litres will be liable to the monitoring obligation. The reporting duty will not apply to the goods transported in unit packages up to 26 kg / 26 litres.
Objective of the regulation
The explanatory statement of the bill provides that in view of the findings of the analysis conducted (which indicate that there are certain irregularities in the trade of such goods, especially in the scope of VAT), it is justified to extend the road monitoring system to include the above items, in an attempt to tighten the tax system.
Nonetheless, one should point out here that the explanatory statement of the bill generally concerns the rapeseed oil trade, whereas the regulation itself provides analogous duties in respect of many other vegetable oils and animal fats.
Effective date of the regulation
At present the draft regulation is at the stage of interministerial consultations. It is expected to come into force 14 days after its publication. Senate's amendments to Act on the system of monitoring road transport of goods, as discussed in previous issues of our Excise duty Express , were approved, and the bill was referred to the President for signature.
The proposed provisions of the regulation - in their current wording - may significantly extend the scope of the enterprises subject to the transport monitoring obligations - this mainly concerns commercial and foodstuff entities. Interestingly, in the Assessment of the Consequences of the Regulation attached to the draft regulation the Ministry of Finance does not indicate the number of entities that may fall within the scope of the requirements (the field: Economic entities trading in such goods contains information that no relevant data is available). In practice, a very large group of entrepreneurs that are so far unaware of the transportation package requirements may be covered by reporting obligations after the regulation takes effect.