§ 31. Security

(1) Security is provided in order to ensure payment of excise duty on goods transported to, produced or stored in or dispatched from an excise warehouse under an excise suspension arrangement. Producers of shale-derived fuel oil are not required to provide security for shale-derived fuel oil produced or stored by them in an excise warehouse under an excise suspension arrangement. No security is required in case of a state-owned excise warehouse of the Defence Forces engaged in fuel handling (hereinafter excise warehouse of the Defence Forces). [RT I, 08.03.2012, 1 - entry into force 01.04.2012]

(1¹) A registered consignee shall provide security to ensure payment of excise duty on excise goods received in the place of business of the consignee.

(1²) An undertaking specified in subsection 21¹ (1) of this Act shall provide security to ensure payment of excise duty on excise goods released for consumption in another Member State upon transportation of the goods to Estonia. [RT I, 08.03.2012, 1 - entry into force 01.04.2012]

(1³) A tax representative shall provide security to ensure payment of excise duty on excise goods transported to Estonia by a distance seller. [RT I 2010, 8, 36 - entry into force 01.04.2010]

(1⁴) A registered consignor shall provide security to ensure payment of excise duty on excise goods dispatched under an excise suspension arrangement. [RT I 2010, 8, 36 - entry into force 01.04.2010]

(1⁵) An excise warehousekeeper which is legally and economically independent of any other producers of alcohol and which produces no excise goods other than beer, wine and fermented beverages, and which production of beer in a calendar year is up to 40,000 litres and the production of wine and fermented beverages in a calendar year totals up to 15,000 litres shall, at the request of the tax authority, provide security to ensure payment of excise duty. The tax authority may request the security if it has reasons to believe that the person may fail to discharge the tax liability. An excise warehousekeeper is considered to be legally and economically independent of any other producers of alcohol, inter alia, in case it is not owned by a company which owns another producer of alcohol or which has a direct or indirect holding in a company which owns another producer of alcohol, and in case it is not owned by a company where a company which owns another producer of alcohol has a direct or indirect holding. [RT I, 08.03.2012, 1 - entry into force 01.04.2012]

(2) The Tax and Customs Board may demand that a person specified in clause 50 (5) 6), 10), 11) or 14) or a holder of a permit for exemption from excise duty on energy or a holder of a permit for production of fuel from waste provide security in order to ensure the payment of excise duty on alcohol specified in clauses 27 (1) 9¹) and 14)–18), or fuel or electricity specified in clauses 27 (1) 19¹), 22), 22²), 24), 28²), 28⁴) and 28⁵) of this Act if there is reason to believe that the person may fail to discharge the tax liability. [RT I 2008, 49, 272 - entry into force 01.01.2009]

(3) The provisions of law concerning security for a customs debt apply to a security for payment of excise duty. The provisions of law apply to the provision, acceptance, use and release of a security.

(4) The amount of security shall be determined by the Tax and Customs Board. The amount of security shall be determined on the basis of the size of the tax liability which may arise or has arisen as calculated by the excise warehousekeeper, registered consignee, applicant for an excise warehouse activity licence, applicant for the activity licence of a registered consignee, distance seller, tax representative, registered consignor or a person specified in subsection (2) of this section. [RT I 2010, 8, 36 - entry into force 01.04.2010]

(5) The size of a tax liability which may arise or has arisen shall be calculated: 1) in the case of the persons specified in subsection (2) of this section, on the basis of the average quantity of excise goods on which excise duty has not been paid in the possession of the persons; 2) in the case of an excise warehouse, on the basis of the total amount of the average quantity of excise goods stored in the excise warehouse under an excise suspension arrangement, the maximum quantity of excise goods transported concurrently under an excise suspension arrangement and the quantity of excise goods subject to excise duty dispatched from the excise warehouse during a calendar month; 3) in the case of a registered consignee, on the basis of the average quantity of excise goods received under an excise suspension arrangement within a calendar month; 3¹) in the case of a registered consignor, on the quantity of excise goods dispatched under an excise suspension arrangement; [RT I 2010, 8, 36 - entry into force 01.04.2010]  4) [Repealed - RT I, 08.03.2012, 1 - entry into force 01.04.2012]

4¹) in the case of a tax representative, on the basis of the quantity of excise goods transported from another Member State to Estonia within one calendar month; [RT I 2010, 8, 36 - entry into force 01.04.2010]  5) in the case of an undertaking specified in subsection 21¹ (1) of this Act, on the maximum quantity of excise goods transported concurrently to the undertaking.

(5¹) [Repealed - RT I, 30.12.2010, 3 - entry into force 01.01.2011]

(6) In the event of continuous activity, the size of a tax liability which may arise or has arisen shall be calculated on the basis of the information of the last six calendar months. In the event of the commencement of activities or in the event of irregular activities or if a person intends to substantially extend or restrict activities, the size of a tax liability which may arise or has arisen shall be calculated on the basis of the business plan and in co-operation with the Tax and Customs Board.

(7) In order to determine the amount of security in the case of tobacco products and alcohol, the size of the tax liability which may arise or has arisen on the maximum amount of revenue stamps which have been issued to the person from the Tax and Customs Board but on which excise duty has not been paid shall also be taken into account.

(8) The amount of security is equal to or smaller than the size of the tax liability which may arise or has arisen.

(9) The bases for determination of and the minimum rates for the amount of security shall be established by a regulation of the Minister of Finance. [RT I 2005, 68, 527 - entry into force 01.01.2006; 01.07.2006]