Article 12 - Release for Consumption

1. Excise Goods are released for consumption when any of the following is occurred:
a. Producing Excise Goods.
b. Releasing the Excise Goods from a Designated Zone and offering such for free circulation.

2. For the purposes of paragraph (a) of Clause (1) of this Article, Excise Goods shall be treated as produced at such time as the goods reach a stage where they are:
a. Ready to be held out for retail sale;
b. Fit for consumption or sale where the goods are not intended for retail sale;
c. Ready to be sold to a retailer, if the Excise Goods are of the type which are not fit for consumption until they are combined with another product at the point of retail sale.

3. For the purposes of paragraph (b) of Clause (1) of this Article Excise Goods shall be treated as leaving a Designated Zone and enter free circulation at the occurrence of any of the following:
a. The Excise Goods leave a Designated Zone, unless they are moved to another Designated Zone without being released for consumption or will be Exported in accordance with such conditions as specified by the Decree-Law and this Decision;
b. They are consumed or bought for consumption within a Designated Zone;
c. There is an irregularity in the course of a transfer of Excise Goods between Designated Zones which resulted in Excise Goods being released for consumption; or
d. They are found to be deficient or there is a shortage in their quantity from a Designated Zone or during transfer between Designated Zones or whilst held in a suspension arrangement in accordance with the Customs Laws.

4. “Irregularity” in paragraph (c) of Clause (3) of this Article, means a situation occurring during a transfer of Excise Goods from one Designated Zone to another where those goods are not transferred in accordance with the conditions specified under this Decision, or the Excise Goods are lost or destroyed.

5. As an exception to paragraph (d) of Clause (3) of this Article, release for consumption is not deemed to have occurred if:
a. The Warehouse Keeper responsible for the Excise Goods notifies the Authority within 30 days of discovering deficiency in the stock or shortage in quantity; and
b. It appears that the shortage of, or deficiency in, the Excise Goods is due to a legitimate cause accepted by the Authority.

6. Deficient goods may be destroyed before the lapse of 30 days following notification to the Authority, if the Authority has confirmed that the goods may be destroyed.

7. For the purposes of Clause (6) of this Article, the goods may be destroyed after 30 days have lapsed following notification to the Authority, unless the Authority has directed that the goods must be retained for inspection.

8. If, during the period specified in Clauses (6) and (7), the Authority gives the Warehouse Keeper notice to inspect the goods, they shall be held by the Warehouse Keeper until such time as the Authority has so inspected them and given permission for destruction to take place.