Section 216: Removal of goods without payment of excise duties

1 Where goods otherwise subject to excise duty are allowed to be removed tax-free from the premises of a licensed manufacturer, entered into for the purpose of distrain because they are intended for an approved specified use or purpose, no person shall be permitted to use or deal with the goods in a way contrary to the specified use or purpose without the permission of the Service and only after the payment of the excise duty due.

2 Where goods otherwise subject to the excise laws are allowed to be removed tax-free from the premises of a license manufacturer entered into for the purpose of distrain, subject to a condition that they will not be sold or disposed of in a similar manner without payment of excise duty or on payment of excise duty at a reduced rate, no person is allowed to use or deal with the goods in a contrary manner except with prior notification and authorisation of the Service and only after payment of the excise duty due.

3 Any person who knowingly uses or deals with any goods in contravention of the provisions of subsections (1) or (2) commits an offence and is liable on conviction to a fine of six times the value of the goods or N 1,000,000 whichever is greater, and any goods used or dealt with in contravention of this section is liable to forfeiture.

4 The provisions of this section shall apply whether or not financial guarantee, security, or collateral has been given for observance of the specified use or purpose or the condition for the payment of excise payable, and forfeiture of goods under this section shall not affect the liability of a person who has been given a financial guarantee, security, or collateral.