Guidance: Receive goods into and remove goods from an excise warehouse (Excise Notice 197)

1. Overview

1.1 About this notice

This notice explains what an approved business needs to do to hold and move excise goods in duty suspension within the UK.

You should read it if you’re:

• already authorised as an excise warehousekeeper with approved warehouse premises
• registered as an owner or duty representative of excise goods
• approved as a registered consignor or are responsible for transporting excise goods
• approved as a registered consignee in Northern Ireland who is responsible for receiving duty-suspended movements before releasing them for consumption

This notice applies to you if you:

• receive and place duty-suspended excise goods into an excise warehouse (read section 5)
• move excise goods in duty suspension from the place where they are released for free circulation to an excise warehouse or other allowable destination (read section 7)
• remove duty-suspended excise goods from an excise warehouse to home use on payment of duty (read section 11)
• remove excise goods in duty suspension from an excise warehouse to other approved persons or premises in the UK (read section 12)
• remove excise goods in duty suspension from an excise warehouse for export from the UK (read section 13)
• remove excise goods from an excise warehouse for a specific duty relieved purpose (read section 14)
• need to understand the requirements that apply to the holding and movement of excise goods and payment of duties that apply in Northern Ireland

This notice contains the general conditions, directions and requirements relating to the movement of excise goods to and from UK excise warehouses.

It should be read along with Registration and approval of excise goods held in duty suspension (Excise Notice 196) which deals with the authorisation of warehousekeepers, approval of premises as excise warehouses, registration of owners of excise goods in warehouse and approval of registered consignors.

You can find more information about specific types of excise warehouse approval in the following notices:

As an authorised warehousekeeper, registered owner, duty representative, registered consignor or registered consignee you have obligations under the law, if you fail to fulfil these obligations or observe any condition of your authorisation, you could:

• get a financial penalty
• be liable for the duty on the goods
• have the goods forfeited
• have your authorisation and approval restricted, or get new conditions on your authorisation and approval
• not be able to renew your authorisation or approval for some or all the sites for which you’re an authorised warehousekeeper
• have your authorisation and approval withdrawn for some or all the sites for which you’re an authorised warehousekeeper
• have registration as a registered owner, duty representative, registered consignor or registered consignee cancelled

If you sell alcohol wholesale on, at the point duty becomes due, you should also follow the guidance in Excise Notice 2002: Alcohol Wholesaler Registration Scheme.

2. Excise Movement and Control System (EMCS)

2.1 General information about EMCS

EMCS is an electronic system that records and validates movements of duty-suspended excise goods.

The UK will retain its version of EMCS for recording and validating movements of duty-suspended excise goods within the UK. However this will no longer be linked to the EU-wide EMCS apart from in respect of Northern Ireland.

Unless there’s a specific exemption in UK law, EMCS must be used for the following movements of excise goods in duty suspension:

• intra-UK movements of alcohol and tobacco where the goods are moving between tax warehouses within the UK
• movements of alcohol and tobacco from a UK tax warehouse to the place where the goods will leave the territory of the UK
• movements of excise goods by registered consignors from the location where the goods are placed into free circulation or authorised use to a UK tax warehouse or for re-export
• movements of excise goods between Northern Ireland and an EU member state of all excise goods where they are moving between approved persons or premises
• movements from Northern Ireland to a place in the EU where the excise goods will leave the EU territory, either as a direct export from Northern Ireland or an indirect export through an EU member state
• movements of excise goods by Northern Ireland registered consignors from the place where the excise goods are released to free circulation to approved persons or premises either in the EU or the UK

Authorised warehousekeepers and registered consignors moving duty-suspended excise goods must register and enrol for EMCS.

If you’re already registered and enrolled for EMCS at the end of the transition period, you will not need to re-register or re-enrol for EMCS.

Consignors of duty-suspended excise goods must complete and submit a message known as an electronic Administrative Document (eAD) using EMCS before a movement of excise goods can take place.

There are guidance notes and help text explaining how to use EMCS and on the EMCS screens.

When the details entered on the eAD have been validated, EMCS will generate a unique administrative reference code (ARC) for that particular movement. Depending on whether the movement started in Northern Ireland or the rest of the UK the ARC will either begin ‘XI’ or ‘GB’.

The ARC is required to travel with the goods and must be made available for presentation when requested by the relevant authorities during the course of the movement.

This means the consignor must provide the person accompanying the goods (for example, the driver of the vehicle) prior to departure with either an eAD or a commercial document on which the unique ARC is clearly stated, either in paper or electronic form.

If an electronic document is used it must be either an electronic copy of the relevant eAD or an electronic copy of any other commercial document containing the relevant ARC.

The electronic document containing the ARC must be transmitted directly to the person accompanying the goods, for example, the driver of the vehicle.

If you want to use an electronic document, you must be able to display it immediately when asked by an authorised person.

The person accompanying the goods must also be able to immediately forward the document to the relevant authorities if asked to do so.

Details of how excise warehousekeepers and registered consignors can register, enrol and access EMCS are in Registration and approval of excise goods held in duty suspension (Excise Notice 196).

2.1.1 Exceptions — where EMCS is not used

All UK traders involved in the receipt and dispatch of excise goods in duty suspension within the UK must be able to send and receive the goods through EMCS. This means that, in normal circumstances, there should no longer be any paper based movements when excise goods are moving in duty suspension.

Exceptions to this rule apply when:

• the excise goods are moving under fallback procedures because EMCS is not available (read section 3)
• the duty-suspended movement is one that meets the criteria for simplified procedures (read section 4)
• a duty-suspended movement of energy products is taking place between 2 suitably approved premises in wholly within the UK or from an approved premises to a place from where they will leave the UK — these intra-UK movements do not take place on EMCS, they must be accompanied by form W8 (or commercial equivalent) instead — find more information on duty-suspended movements of energy products within the UK in Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179)

• for Northern Ireland only — a duty-suspended consignment of wine is dispatched by a small wine producer based in an EU member state that exempts those traders from using EMCS, these movements should be accompanied by a document drawn up by the small wine producer in line with Commission Regulation (EC) no 436/2009 — the EU member states that currently grant this exemption to their small wine producers are:

  • Austria
  • Belgium
  • Bulgaria
  • Cyprus
  • Czech Republic
  • Germany
  • Greece
  • Hungary
  • Italy
  • Luxembourg
  • Malta
  • Portugal
  • Romania
  • Slovakia

2.2 The eAD

This notice details the structure and content of electronic messages exchanged through EMCS and includes the information required in the relevant fields of the eAD. It also includes detail on the report of receipt and change of destination (CoD) declarations.

The legal requirements for these messages are set out in Calculation examples for alcohol duties (PDF, 157 KB, 2 pages).

Read more guidance on creating an eAD on EMCS.

2.3 Overview of the EMCS process

This describes a standard movement of excise goods in duty suspension between a consignor and consignee under EMCS.

In practice it covers an authorised warehousekeeper who is dispatching excise goods under duty suspension from a tax warehouse to another tax warehouse in the UK.

It also covers an authorised warehousekeeper in Northern Ireland who dispatches excise goods in duty suspension to a registered consignee or temporary registered consignee in an EU member state.

1. The consignor submits the electronic Administrative Document (eAD) prior to the dispatch of the goods.

2. The electronic Administrative Document is validated by the Excise Movement and Control System (EMCS). Part of this validation process will include a check of the UK System for the Exchange of Excise Data (SEED). If the electronic Administrative Document is rejected, an error message is sent to the consignor who must amend and re-submit the eAD with correct information.

3. Once validated, the Excise Movement and Control System assigns the administrative reference code (ARC) and saves a copy within the system. The consignor and consignee receive the validated electronic Administrative Document with the administrative reference code on the Excise Movement and Control System.

4. The goods are from the warehouse with the administrative reference code after the date and time of dispatch have been declared. The ARC must travel with the goods.

5. The consignee receives the goods, checks the consignment against the electronic Administrative Document and makes an inventory of any excesses, shortages or losses.

6. The consignee completes the report of receipt and submits the message on the Excise Movement and Control System no later than 5 days after receiving the goods, making sure any results from step 4 are included.

7. The Excise Movement and Control System receives and validates the report of receipt against the electronic Administrative Document. A copy of the report of receipt is saved within the system. If the report of receipt is rejected, an error message is sent back to the consignee who must amend and re-submit the report of receipt with correct information.

8. After validation, the report of receipt is sent to the consignee and consignor If shortages or losses have not been declared, the return of the report of receipt discharges the electronic Administrative Document. When the report of receipt submitted by the consignee confirms shortages or losses, HMRC will investigate further. The assessment and collection of any duties will be dealt with outside of the Excise Movement and Control System.

2.4 Additional information for Northern Ireland consignors who split EMCS movements of energy

Northern Ireland consignors who dispatch consignments of energy products, in duty suspension, to EU member states can split a consignment on EMCS into 2 or more parts (up to a maximum of 9 parts) for subsequent delivery to different destinations outside Northern Ireland only.

Splitting cannot be done through the HMRC EMCS online service. A Northern Ireland consignor who wants to split a movement of energy products must purchase or develop their own software. But a Northern Ireland consignee can view and process any split consignments they receive from an EU member state through the online service.

A ‘new’ eAD is created for each split consignment, with its own unique ARC called a downstream ARC.
The original ARC, called the upstream ARC, is included as a reference field in each downstream ARC. It is possible for a downstream ARC to be split into further movements, up to a maximum of 9.

The total quantity of goods recorded on all downstream ARCs must equal the original quantity recorded on the upstream ARC. When an upstream eAD is replaced by downstream eADs, its status changes to ‘replaced’ on EMCS.

When splitting a consignment of energy products, the new consignee or place of delivery must be approved to receive the goods. If the split consignment is exported to a country outside the EU, the new destination for EMCS purposes will be the place from where the goods leave the EU. Actual splitting of the consignment can only take place in an EU member state that allows splitting.

Only one of the new destinations on the subsequent downstream eADs can be the same as that recorded on the upstream eAD (this includes changes to ‘unknown’ destinations).

For example, if the destination of the upstream eAD was ‘unknown’ then only one of the subsequent downstream eADs can have an ‘unknown’ destination.

But a consignment cannot be split to an ‘unknown’ destination unless the upstream eAD was already to an ‘unknown’ destination.

Also, you cannot send 2 or more splits of a consignment to exactly the same consignee and destination.

3. If EMCS is not available

3.1 General information

You need to apply fallback procedures if EMCS is not available. This is when you cannot:

• access it
• submit messages on it because of a system problem

A system problem may affect:

• all users — for example when there is a fault with EMCS
• just you — for example, when there is a fault with your hardware, software or internet connection

EMCS will display advisory messages when a problem concerning access or message submission affects all users.

It is your responsibility to make sure that you have robust systems in place.

The fallback procedures are intended to allow businesses to continue to move excise goods in duty suspension when there is a genuine system problem that prevents the use of EMCS. If you misuse the fallback procedures, HMRC may review the conditions and approvals necessary for you to continue to trade under duty suspension arrangements.

You should keep sufficient evidence to show why EMCS was not available.

In most cases you will not need to apply the fallback procedures described in this notice. If you need to use EMCS when it is not available, if possible you should wait for EMCS to become available and then submit messages in the normal way, rather than use the fallback procedures.

If you use commercial software to access EMCS that’s not available in time to submit your message, you should use the EMCS online service when it is possible and practical to do so, rather than use the fallback procedures.

If either EMCS or your commercial software is not available and it is not possible and practical to use the EMCS online service, you should then apply the fallback procedures described within this notice. It is for you to decide if you need to use the fallback procedures, subject to meeting the conditions set out in this notice.

If EMCS is not available in the UK and EU member state (for movements between Northern Ireland and the EU), the consignor or consignee in the UK or EU member state may also apply fallback procedures.

When EMCS becomes available in the UK and EU member state, the consignor or consignee will submit their message or messages on EMCS in the normal way.

3.2 How to start a movement under fallback procedures

If you dispatch goods under duty suspension arrangements and EMCS is not available to submit the eAD, you must use the fallback procedure.

Before each consignment of goods leaves the warehouse you must complete both the:

• fallback accompanying document or a commercial equivalent in accordance with Commission Regulation 684/2009
• ‘Notification of movement starting in fallback’ form or a commercial equivalent and email it to emcs.helpdesk@hmrc.gov.uk to notify HMRC that you’re dispatching goods using fallback procedures, the email subject title must be in the format ‘consignor Excise ID – Local Reference Number for the movement – ‘fallback accompanying document’, for example:
  • GBWK123456700 – 123456AB123 – fallback accompanying document
  • XIWK123456700 – 123456AB123 – fallback accompanying document
  • GBRC123985304 – 456123789 – fallback accompanying document
  • XIRC123985304 – 456123789 – fallback accompanying document

If email is temporarily unavailable, you can fax the ‘Notification of movement starting in fallback’ form which must be readable to 03000 516 251.

The goods can now be dispatched. The completed fallback accompanying document must accompany the goods and you must keep a copy of this document for your records.

When EMCS becomes available, you must, as soon as practically possible, submit an eAD for that consignment on EMCS.

You must make sure that:

• the information you enter on EMCS matches the information on the fallback accompanying document, including your local reference number (LRN)
• you state on EMCS that the movement began in fallback

3.3 How to change the destination of goods under fallback procedures

When you need to change the destination of goods and EMCS is not available to submit the change of destination message, you must use the fallback procedure.

Before you change the destination of the goods you must:

• complete the fallback change of destination form or a commercial equivalent in accordance with the requirements of Commission Regulation 684/2009
• email the completed form to emcs.helpdesk@hmrc.gov.uk to notify HMRC that you’re changing the destination of goods using fallback procedures, the email subject title must be in the format ‘consignor Excise ID – ARC reference (or local reference number for a movement that began and is still moving under fallback procedures) – COD’, for example ‘GBWK123456700 – 10GB12345678912345678 – COD’, or ‘GBRC123985304 – 456123789 – COD’ or ‘XIWK123456700 – 10XI1234567812345678 – COD’ or ‘XIRC123985304 – 456123789 – COD’

If email is temporarily unavailable, you can fax the ‘fallback change of destination document form’ which must be readable to 03000 516 251.

Then you can amend the destination of the goods. You must keep a copy of the fallback change of destination document.

You should inform the original and, if appropriate, the new consignee, of the change in delivery address.

You should also tell the transporter to make a note on the printed eAD or, if applicable, the commercial document on which the ARC is stated or the fallback accompanying document of the:

• date and time you advised them of the change of destination
• fact that the change of destination has been notified using fallback procedures
• new place of delivery details and the new consignee details, if appropriate

If the movement requiring the change of destination has previously been submitted on EMCS, the ARC must be quoted on the fallback change of destination document.

If the movement has not been submitted on EMCS, and the goods are currently moving under fallback procedures, the same local reference number shown on the fallback accompanying document must be quoted on the fallback change of destination document.

When EMCS becomes available, you must, as soon as practically possible:

• submit the change of destination message on EMCS
• make sure that the information you enter on EMCS matches the information on the fallback change of destination document

If the movement began and is still taking place under fallback procedures, when EMCS becomes available you must submit both the:

• eAD on EMCS showing the original destination details
• change of destination message showing the amended destination details

3.4 Additional information for Northern Ireland consignors — how to split a consignment of energy products under fallback procedures

If you need to split a consignment of energy products and EMCS is not available to submit the splitting operation message, before the consignment of energy products is split you must:

• complete the fallback splitting operation form or a commercial equivalent in accordance with the requirements of Commission Regulation 684/2009
• email the completed form to emcs.helpdesk@hmrc.gov.uk to notify HMRC that you’re splitting a consignment of energy products using fallback procedures, the email subject title must be in the format ‘consignor excise ID – ARC reference (or local reference number for a movement that began and is still moving under fallback procedures) – splitting’, for example:
  • ‘XIWK123456700 -10XI12345678912345678 – splitting’
  • ‘XIRC123985304-456123789 – splitting’

If email is temporarily unavailable, you can fax the ‘fallback change of destination document’ form which must be readable to 03000 516 251.

Then you can split the consignment of energy products. You must keep a copy of the fallback splitting operation form.

You should inform the original and new consignees that the consignment of energy products has been split. You should also tell the transporter to make a note on the printed eAD or the commercial document on which the ARC is stated or the fallback accompanying document of the:

• date and time you advised them of the splitting operation
• fact that the splitting operation has been notified using fallback procedures
• full details of each new split of the movement

If the movement requiring the splitting operation has previously been submitted on EMCS, the ARC must be quoted on the fallback splitting operation form.

If you have not submitted the movement on EMCS, and the goods are currently moving under fallback procedures, you must quote the same local reference number shown on the fallback accompanying document on the fallback splitting operation form.

When EMCS becomes available, you must, as soon as practically possible:

• submit the splitting operation message on EMCS
• make sure that the information you enter on EMCS matches the information on the fallback splitting operation form

If the movement began and is still taking place under fallback procedures, when EMCS becomes available you must submit both the:

• eAD on EMCS showing the original destination details
• splitting operation message or messages showing the amended details

You can only split a consignment of energy products, and each of its subsequent splits, into a maximum of 9 new parts.

3.5 How to submit the report of receipt under fallback procedures

If EMCS is not available, you should wait for the service to become available and then provide your report of receipt on EMCS in the normal way.

4. Simplified procedures

Simplified procedures allow excise goods to move, under duty suspension arrangements, using alternative paper documents instead of an eAD generated through EMCS.

Simplified procedures apply where you are moving:

• alcoholic liquors between approved UK production sites, registered premises and excise warehouses in the UK that are approved to receive and store the goods, and the ownership of the liquor remains with its producer during the course of the movement:
  • if a movement guarantee is required, the alcoholic liquor must be accompanied by form W8, or commercial equivalent issued by the consignor
  • if no guarantee is required, the alcoholic liquor must be accompanied by a commercial document issued by the consignor that includes:
    • a unique reference number
    • the consignor’s name and address
    • the date of dispatch
    • the name and address of the consignee
    • the address of the place to which the liquor is consigned
    • a description of the liquor including its quantity and, in the case of beer, its strength and packet size and a statement indicating that the liquor is being moved without payment of duty
• tobacco products to or from a UK-registered tobacco factory, a registered store or an excise warehouse that’s used for the packaging, repackaging or testing of tobacco products, and ownership of the tobacco remains with its manufacturer during the course of the movement:
  • the tobacco product must be accompanied by a document issued by the consignor that includes:
    • a unique reference number
    • the consignor’s name and address
    • the date of dispatch
    • the name and address of the consignee
    • the address of the place to which the tobacco product is consigned
    • a description of the tobacco product and a statement indicating that the tobacco product is being moved without payment of duty
• alcoholic liquors and tobacco products from UK-registered premises or an excise warehouse to a place in the UK from where they will leave the territory of the UK and EU (direct exports), and the occupier of the premises is authorised in their own right to operate customs supervised export (CSE) (read paragraph 13.5)

Except for direct exports, the consignee receiving the alcoholic liquor or tobacco product must complete and return a certificate of receipt to the consignor no later than 5 business days after receipt of the goods.

Find more details about the intra-UK movements subject to simplified procedures in:

There is also more information in part 9 of The Excise Goods (Holding, Movement and Duty Point) Regulations 2010.

5. Receiving excise goods for warehousing

5.1 The receiving warehousekeeper’s responsibilities

Before entering into any commercial contracts, you must make sure that:

• you’re authorised as an excise warehousekeeper
• your premises are approved to receive the relevant excise goods — your warehouse premises approval will show the type of goods that can be stored there, either as a:
  • general storage and distribution warehouse
  • trade facility warehouse

You must also comply with any requirements in the guidance in Registration and approval of excise goods held in duty suspension (Excise Notice 196).

If your warehouse has been approved as a motor and heating fuel warehouse, you must also comply with the guidance in Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179).

You receive goods when you accept them into your approved premises whether you unload them immediately or not. The excise goods are deemed to be warehoused when they enter the area approved by HMRC. This area will be identified on the plan attached to the warehouse approval letter.

Unless there are specific conditions attached to the approval, a warehousekeeper may receive duty-suspended excise goods from:

• other UK warehouses
• imports where the goods are consigned from the place of release to free circulation by a registered consignor
• warehouses in an EU member state — for warehousekeepers with approved warehouses in Northern Ireland only

If the warehouse approval allows, you can also receive and store duty-paid goods.

HMRC does not allow UK-manufactured tobacco products intended for home use to be stored in an excise warehouse, unless the goods are intended for a duty-free purpose, for example:

• export
• ships’ or aircraft stores
• visiting forces
• export shops
• supply to embassies within the UK

When you receive duty-suspended goods into your excise warehouse, you must:

• make sure that the owner of the goods, or their duty representative is entitled to deposit them in an excise warehouse — you must:
  • be fully satisfied that the owner or duty representative has no conditions on their approval that places restrictions on the storage of the goods — any conditions of approval will be found at Appendix A of the approval letter and on page 2 of the certificate of registration issued by HMRC
  • get a complete copy of the owner’s or duty representative’s certificate of registration to be satisfied that any conditions of their approval can be met before the goods are stored in your warehouse
• place the goods in your warehouse without delay
• enter the goods into your stock account records making sure that all goods are marked in line with your procedures agreed with HMRC at the time your premises were approved
• inspect secured vehicles on arrival to confirm that they are still secure, including locks and seals and that the seal numbers are correct
• check that all consignments have arrived intact
• make a thorough external examination of all containers, casks and packages
• investigate any deficiencies, or any indication of interference
• measure all bulk receipts of alcoholic liquids for quantity and strength, unless HMRC has authorised you in writing to use a different procedure
• take an account of alcoholic liquids in casks, drums or cases, unless you’re satisfied that a clear receipt for the advised quantity can be given
• discharge the movement either by providing a report of receipt under EMCS procedures or endorsing the manual document required to accompany non-EMCS duty-suspended movements
• adopt an appropriate system for checking bottles and strengths with the documents — check bottle labels for strength with the accompanying documents and goods

You may warehouse goods which arrive before you have obtained a copy of the owner’s or their duty representative’s certificate of registration. But during this ‘initial period’ the goods can only be removed to home use on payment of all duties.

Only after you hold a copy of the owner’s registration certificate is this obligation relaxed. The initial period is 72 hours, starting from the time when goods are first deposited in an excise warehouse excluding Saturday, Sunday and bank holidays.

If you do not get a copy of the owner’s certificate of registration within this initial period, you have to pay the duty on those goods. You can avoid the liability for the duty by immediately abandoning the goods to HMRC.

This also applies when an owner or duty representative ceases to hold a registration, or duty-suspended goods are sold in warehouse to an unregistered owner. In these circumstances, you as the warehousekeeper are jointly and severally liable with the last owner or duty representative to pay the duty.

You can avoid liability for the duty on those goods by immediately abandoning the goods to HMRC (read section 9).

It’s in your own interest to:

• carry out sufficient checks to confirm that all your customers are genuine traders who are aware of their responsibilities in respect of excise goods
• monitor EMCS and be aware of all consignments dispatched to you

Any goods in duty suspension are deemed to be warehoused by you when they physically enter the approved area of your warehouse.

You must take account of the goods (count and make sure that the description of the goods is the same as on the eAD or accompanying documents) as soon as they enter the warehouse.

Your records should be referenced against the ARC for the movement.

As EMCS does not contain any information of whether the goods are, or have been, subject to a previous sale in warehouse that could affect the VAT status of the goods, this information should be contained on any commercial documents accompanying the load. If you’re not sure about the VAT status of the goods you should contact the dispatching warehousekeeper.

A report of receipt must be sent by EMCS to the dispatching warehousekeeper to advise them that the goods have reached the receiving warehouse or, in the case of goods that arrive under simplified procedures, by endorsing and returning the relevant copy of the manual accompanying document. This act discharges the financial security provided to cover the movement.

You must send the report or certificate of receipt to the consignor within 5 days of the goods being warehoused. If you do not, you’re failing to comply with UK law and the conditions of your authorisation and approval.

As a result, HMRC may:

• impose a financial penalty
• consider revoking your authorisation and approval

If any expected goods do not arrive at your warehouse within a reasonable time and you do not know the reason for the delay, you should advise the consignor and the HMRC excise helpline immediately. You should also try to find out what happened to the goods.

If there’s a serious incident affecting the movement, for example an accident or theft, you should tell the HMRC EMCS helpline immediately.

HMRC will raise an event report on EMCS, based on the information you provide. This message will be visible to both consignor and consignee.

When an event report is raised by the authorities in the UK or in an EU member state there may be documents attached, which you’ll not be able to view on EMCS. If so, the message you receive will tell you that there is an attachment that has been removed.

You can get a copy of the attachment by contacting the HMRC EMCS helpline.

In general, the liability to pay the duty on goods which fail to reach the consignee falls upon the person who provided the financial security for the movement.

If you’re not sure if you should warehouse and account for any goods, contact the HMRC excise helpline.

5.2 Receipt of duty-suspended goods under EMCS procedures

5.2.1 Receiving goods under EMCS and the accompanying documents

If you’re moving excise goods recorded on the EMCS, then the electronic administrative document’s ARC must travel with the goods allowing it to be made available to relevant authorities, on request, at all times during their transportation.

The document showing the ARC can be either in:

• paper form
• electronic form — read paragraph 2.1

You must make sure that the person responsible for the goods during their transportation is provided with either:

• a copy of the eAD
• commercial documentation showing the ARC (either in paper or electronic form — read paragraph 2.1)

If the goods are being transported in a sealed container or tank, this document does not need to be kept physically inside it or attached to the container. But it must travel with the goods and must be produced, on request, to the relevant authorities at any point in the journey.

If the goods are accompanied by a fallback accompanying document

To receipt goods, you’ll need to access EMCS, follow the online guidance to find the ARC relating to the received goods and provide the ‘report of receipt’. You should provide the report of receipt without delay, no later than 5 days after the goods are received.

If you discover a shortage or excess of goods on receipt

If EMCS is not available for you to complete and submit the report of receipt, you should wait for EMCS to become available and then provide your report of receipt on EMCS in the normal way.

If EMCS is available but you’re unable to submit a report of receipt, you should contact the HMRC EMCS helpline.

If the problem is with the system and cannot be resolved, you’ll be issued with a manual closure request form. You must complete and return this form to the helpline without delay, as the movement will remain open on EMCS until the required information is received.

On receipt of a fully completed manual closure request form related to a receipt of goods into Northern Ireland from an EU member state, HMRC will forward it to the authorities in the member state of dispatch for them to close the movement on EMCS. You and the consignor should receive a message through EMCS confirming that the movement has been manually closed.

It is your responsibility to access EMCS regularly so that you’re aware of any current or outstanding EMCS movements to your warehouse.

You could be liable to a financial penalty if you fail to receipt the movements you receive through EMCS.

Also, for movements between Northern Ireland and an EU member state, if a movement is not closed on EMCS the consignor may be needed to pay the excise duty in the EU member state of dispatch.

5.2.2 Receiving goods under an EMCS fallback accompanying document

If EMCS is temporarily unavailable the consignor may dispatch the movement to you under the cover of a ‘fallback accompanying document’.

You’ll be able to identify this document because it will include the statement ‘fallback accompanying document (FAD) for movements of excise goods under suspension of excise duty’.

The fallback accompanying document will not normally include an ARC (because the movement is not recorded on EMCS), but instead will show the local reference number provided by the consignor that will uniquely identify the movement.

As soon as EMCS is available again the consignor will record the movement on EMCS retrospectively.

You should wait for your movement to be shown on EMCS and then provide your report of receipt on EMCS in the normal way.

You can use the local reference number provided by the consignor to identify your movement on EMCS.

For movements received in fallback from France, you may also use the ‘fallback ARC’ to identify your movement on EMCS.

5.2.3 Additional information for Northern Ireland warehousekeepers receiving goods under a fallback accompanying document

Northern Ireland warehousekeepers should be aware that consignors from France can generate a ‘fallback ARC’ when dispatching goods using fallback procedures. So it is possible to receive a fallback accompanying document from France showing an ARC.

For movements received in fallback from France, you may also use the fallback ARC to identify your movement on EMCS.

The requirements to examine the goods received and count the received amounts (for shortages and excesses) as detailed in paragraph 5.3 will apply.

5.3 Procedures to follow for shortages and excesses

You must take account of the goods (count and make sure the description of the goods is the same as on the accompanying documents) as soon as they enter the approved area of the warehouse. It is possible that there may be discrepancies with the goods that you receive.

You must compare the quantity shown on the accompanying electronic or paper document against the quantity actually received and note any discrepancies on the report or certificate of receipt.

If there is a shortage on receipt you must:

• enter the goods as actually received in your records which should be referenced to the ARC for EMCS movements or other individual unique reference number for non-EMCS movements
• record details of the shortage including description of goods and amount of shortage in the appropriate part of the report of receipt on EMCS or on the certificate of receipt of the manual document used for simplified procedures
• send a copy of the printed eAD or commercial document along with any supporting documents to explain the discrepancy to HMRC’s excise liaison office

Operators of motor and heating fuel Warehouses should also refer to Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179) for bulk movements by sea.

HMRC may remit (cancel) the duty in which case we’ll endorse the printed eAD or commercial document containing the ARC. If we think that the loss is chargeable with duty, we’ll note the printed eAD or commercial document accordingly. We’ll then return the printed eAD or commercial document to you.

If you discover excesses and the excess goods are:

• the same as those detailed on the eAD or commercial document (for example, 5 additional cases of the same goods received and you want to keep the goods in duty suspension), you must record the receipt of the goods in your records and also record the excess on the report of receipt on EMCS using the ‘accepted although unsatisfactory’ option
• the same as those detailed on the eAD or commercial document (for example, 5 additional cases of the same goods received and you do not want the excess goods), you should refuse the excess goods by not taking them into your stock records and by recording the excess on the report of receipt using the ‘partial refusal’ option on EMCS — it will then be the consignor’s responsibility to re-direct the excess goods to another approved destination, you must keep a full audit trail
• different from those described on the eAD or commercial document, the excess goods are no longer in duty suspension as they have not moved under cover of an eAD — the UK excise duty for the excess goods must be paid immediately by the person holding the goods and the report of receipt must be completed as normal for the goods shown on the eAD

You can submit an explanation of reason for shortage or excess message on EMCS. Unlike the information that can, and should, be entered on the report of receipt when reporting a shortage or excess, this message is only visible to you (the creator of the message) and HMRC.

The only exception to this is where a Northern Ireland warehousekeeper receives a consignment of goods from an EU member state. In this case, any shortage or excess message you create is also visible to the creator of the message and the authorities in the EU member state of dispatch, and EU member state of receipt.

This can be useful where you may want to provide confidential information about a shortage or excess which you do not want to share with the consignor.

5.3.1 Receiving whisky or whiskey in casks from maturation warehouses

Due to the normal losses that occur during the maturation process, it is often difficult for the receiving warehouse to calculate any losses in transit when moving casks from warehouse to warehouse. Normally, the total loss within the cask is calculated using data from the time of filling to the time of disgorging. Only at this time can the losses due to maturation be calculated, accepted or challenged.

5.4 Procedures to follow when goods arrive without the correct movement documents

If goods arrive without a printed copy of the eAD or commercial document containing the ARC, a fallback accompanying document or a document required for movements under simplified procedures, contact the consignor to get copies of the original documents.

If the consignor is unable to supply these copies, then the goods are not considered to be in duty suspension. You should notify the HMRC excise helpline immediately as the excise duty is due.

5.5 Receiving an incorrect consignment

If the goods described on the eAD are not what you ordered but you choose to take them into the approved area of your warehouse, you must:

• enter the goods into your stock accounts
• submit the report of receipt accepting the goods

With agreement from the supplier, you can consign the incorrect goods back to them under a new duty suspension movement through EMCS. Or you can apply for HMRC’s permission to destroy the goods by contacting the HMRC excise helpline.

If you’re not prepared to accept the goods and they have not yet entered the approved area of your warehouse, you should refuse them by selecting the refusal option when completing the report of receipt. It’s the consignor’s responsibility to re-direct the incorrect goods to another approved destination.

5.6 Rejecting goods before arrival

You can reject the movement before the goods arrive at your premises if:

• you receive an eAD on EMCS
• you’re not willing to accept the consignment

You should submit a rejection message through EMCS. You can reject a consignment at any point during the movement but once the goods have arrived at your premises and before they enter the approved area of your warehouse, you should use the refusal option by completing the report of receipt instead of submitting a rejection message.

It’s the consignor’s responsibility to amend the consignee or place of delivery once an eAD has been raised. In cases where other information on the eAD is incorrect, and the consignee is unwilling or unable to accept the consignment because of an error, a change of destination will need to be submitted by the consignor to return the goods back to him. The consignor can then discharge the original eAD and raise a new one using the correct information. A consignor cannot raise a new eAD for goods which are still in transit or have already arrived at their destination.

6. Warehousing for export

Warehousing for export is the warehousing of excise goods (excluding alcoholic liquors subject to excise duty) that are already released for consumption (UK duty paid), for removal to a destination outside the UK. This means that warehousing for export arrangements cannot be used for alcohol such as wine, beer or spirits.

The owner of the goods, subject to eligibility, may be able to claim a refund of the excise duty under the excise duty drawback scheme.

You must not accept the qualifying goods unless they arrive with a warehousing advice note.

You must:

• take account of the goods as you would for any other receipt
• record any discrepancies and the stock account number on both copies of the warehousing advice note
• sign the certificate of receipt on one copy and return it to the owner

You should record in the stock account that the goods are for export only. They must be exported within 6 months of receipt into the warehouse.

If an owner no longer wants to export goods warehoused for export, they must ask for HMRC’s prior permission to remove the goods for another purpose. If we agree to this request, we’ll ask for repayment of the drawback from the claimant and provide a receipt. You should keep a copy of the receipt in your records.

Find out more information about excise duty drawback (Excise Notice 207).

7. Receipts from outside the UK

7.1 General information on warehousing of excise goods from outside the UK

Excise goods originating from outside the UK and sent to the UK under customs import arrangements may be entered into a UK customs warehouse approved to receive excise goods.

When those goods leave the customs warehouse, excise duty would be due on them unless they are either:

• consigned by a registered consignor under excise duty suspension arrangement to someone authorised to receive them (read paragraph 7.2)
• are immediately entered into an excise approved area at the same site as the Customs approved area when both approved areas are under the control of the same legal entity in accordance with paragraph 7.2.3

7.1.1 Additional information for warehousekeepers receiving goods in Northern Ireland

In addition to the information in paragraph 7.1 if you’re an authorised warehousekeeper based in Northern Ireland you are permitted to receive excise goods from an EU member state.

Find more information on receiving goods into a warehouse in Northern Ireland in section 17.

7.2 Registered consignors

7.2.1 General information

A registered consignor is a natural or legal person approved by HMRC who, in the course of their business and under the conditions set by us, dispatches excise goods under excise duty suspension arrangements to persons authorised to receive duty-suspended goods upon their release to free circulation.

Excise goods are considered to be in free circulation or authorised use after the completion of all the import declaration formalities associated with the appropriate customs procedure code (CPC).

You will find more details of the customs procedure codes in volume 3 Appendix E of the Tariff.

HMRC is reviewing all the customs procedure codes within the 07 and 68 series in respect of how to declare the import VAT. Until the outcome of this review, you must follow the present requirements of the customs procedure codes.

To be approved and registered as a registered consignor, you should refer to Registration and approval of excise goods held in duty suspension (Excise Notice 196).

To move goods in excise duty suspension as a registered consignor, you must register and enrol for EMCS (read pararaph 2.1).

Once you’ve been given access to EMCS you may start to submit eADs online and you must complete the eAD correctly to receive an ARC. If you do not the movement cannot be started.

It is essential that you include the customs import entry number in the appropriate field on the eAD.

If EMCS is not available to complete and submit the eAD, start the movement using fallback procedures (read paragrah 3.2).

Northern Ireland registered consignors

A Northern Ireland registered consignor must use the HMRC allocated ‘XI’ excise ID to make sure they can begin to move goods in excise duty suspension both within the UK and to the EU.

If you’re a registered consignor based in Great Britain (England, Scotland and Wales) and need to move goods in excise duty suspension through Northern Ireland to an EU member state, you can also apply to HMRC to amend your authorisation to allocate an XI excise ID to your approval.

When EMCS has allocated the ARC, the goods may leave the UK port, airport or other location at which they have been placed into free circulation or authorised use and travel to the destination warehouse or other allowable destination.

The goods must be accompanied by either a copy of the eAD, or any other commercial document on which the ARC is stated, which can be either in:

• paper form
• electronic form — read paragraph 2.1

If you intend to split a consignment of energy products in excise duty suspension for dispatch to destinations outside the UK, follow the correct procedure for splitting on EMCS in paragraph 2.4.

Registered consignors cannot store goods under excise duty suspension arrangements, but they may cancel a movement for a submitted eAD providing that the dispatch date on the eAD has not passed and the goods have not been dispatched from the place of importation, and are still held in a customs suspensive regime.

You must make sure that a movement guarantee is provided and recorded on the eAD.

If you release the goods without a valid guarantee or without permission to use that guarantee, then you, as the registered consignor, have not complied with your legal responsibilities and may be liable to the duty and a financial penalty. HMRC may also revoke your approval.

Find more information on:

7.2.2 Allowable destinations to which goods may be dispatched

Goods which have been placed into free circulation or authorised use in Great Britain can be dispatched in excise duty suspension by a registered consignor to a tax warehouse in the UK.

Goods which have been placed into free circulation or authorised use in Northern Ireland can be dispatched in excise duty suspension by a registered consignor to:

• a tax warehouse in the UK or an EU member state
• a registered consignee in an EU member state
• a temporary registered consignee in an EU member state
• a place of exit from the EU, either as a direct export from Northern Ireland or an indirect export through an EU member state
• an exempt consignee in an EU member state
• an unknown destination, in the case of energy products transported by sea or inland waterways

7.2.3 Dispatch of goods from a customs suspensive regime

If goods are to be moved from a customs suspensive regime following release to free circulation (for example, from customs warehousing to an excise warehouse) you must access EMCS and submit an eAD, but if the customs warehouse premises, and the excise warehouse premises are located within the same site under the same legal entity, EMCS and registered consignor procedures do not apply where the transfer of the goods from the customs warehouse, and receipt into the excise warehouse is recorded in the stock records of both approved premises.

7.2.4 Change of destination

A registered consignor can change the destination of a movement within EMCS either in the course of the movement or following receipt of a refusal or rejection message from the consignee through EMCS.

You must access EMCS and amend the appropriate destination fields on the eAD, which includes selecting a new consignee for delivery.

As a registered consignor you cannot hold goods in duty suspension. You can only change the destination to a new consignee and not return the goods to yourself.

A destination may only be amended if the new destination is:

• a tax warehouse in the UK, or for movements started by a registered consignor in Northern Ireland, a tax warehouse in an EU member state
• for movements started by a registered consignor in Northern Ireland, a registered consignee in an EU member state
• for movements started by a registered consignor in Northern Ireland, a temporary registered consignee in an EU member state
• a place from where the goods will leave the UK or, for movements started by a registered consignor in Northern Ireland, a place where they will leave the EU
• for movements started by a registered consignor in Northern Ireland, aplace of direct delivery in an EU member state

You should advise the transporter to make a note on the printed copy of the eAD or the commercial document containing the ARC of the:

• date and time you advised them of the change of destination
• new place of delivery and, if appropriate, new consignee details

Read paragraph 3.3 if EMCS is not available to complete and submit the change of destination message.

7.2.5 Shortages during a duty-suspended movement

Shortages found on receipt of the goods will be reported by the consignee. HMRC will charge duty on shortages unless you can prove that the shortage was due to an accident or natural causes. Liability for the duty during the course of a removal rests with the person who provides the security for the movement.

Anyone involved in the irregularity and who was aware, or should reasonably have been aware, that it was an irregularity, is jointly and severally liable to pay the duty with the person who provided the movement guarantee.

HMRC may remit the duty providing you:

• can prove that the loss is accidental or due to natural causes
• follow all the conditions and procedures set out in this notice
• have followed other written directions from HMRC

7.2.6 Discharge of a movement

The movement is discharged when you, as the registered consignor, have received a report of receipt through EMCS. Find information about discharging movements of goods removed for export outside the UK and EU in section 13.

The receiving warehousekeeper must send a report of receipt through EMCS to you within 5 days of receipt of the goods.

Dispatching registered consignors must:

• make sure that they access EMCS regularly and check that they have received the report of receipt
• check the report of receipt for any discrepancies
• record it in their records accordingly

If you have not received a certificate of receipt within 5 days of having delivered the goods to the consignee you must contact the HMRC excise helpline.

For movements started by a registered consignor in Northern Ireland

If EMCS is not available in an EU member state, you may receive a fallback report of receipt from the consignee in that EU member state — the document will be sent through the authorities of the member state.

If you receive a fallback report of receipt, check EMCS to determine if the electronic report of receipt message has already been submitted. If the report of receipt has:

• been submitted on EMCS — the fallback report of receipt can be discarded
• not been submitted on EMCS — the consignee will submit this message to discharge the movement when EMCS becomes available in the EU member state, you should keep the fallback report of receipt until the EMCS report of receipt is received

7.2.7 Irregularities

If you find out that goods dispatched by you have not arrived at their destination, you must contact the HMRC excise helpline immediately. You must also try to find out what happened to the goods.

In general, the liability to pay the duty on goods which fail to reach the consignee falls upon the person who provided the movement guarantee. Anyone who participated in the irregularity and who was aware, or should have reasonably been aware, that it was an irregularity, is jointly and severally liable to pay the duty with the person who provided the movement guarantee.

But, where you fulfil your legal responsibilities in respect of goods removed under cover of an eAD and an irregularity occurs during the movement, if you did not provide the security for the movement and are not responsible for the goods reaching an excise duty point, you’re not liable to pay the duty due.

You’re also not liable to pay the duty due where you fulfil your legal responsibilities in respect of goods removed under cover of an eAD and an irregularity occurs during the movement, provided you:

• did not provide the security for the movement
• are not responsible for the goods reaching an excise duty point

The rate of duty which applies will depend on the member state where the loss occurred, was detected or was deemed to have occurred.

If the consignee retains any excess goods, then they take on the duty liability for those goods. They should note the details of excesses on the report of receipt.

7.2.8 Goods brought into Great Britain at Goods Vehicle Movement Service locations

The Goods Vehicle Movement Service is used to automate the arrival of import declarations at ports operating the pre-lodgement model for goods brought into Great Britain from:

• the EU (not including Ireland)
• outside the EU

Check paragraph 7.2.9 to find out about goods brought into Great Britain from Ireland and Northern Ireland.

For goods imported into excise duty suspension, this means that you cannot delay notification that goods have arrived in Great Britain until the end of the following working day, or delay the submission of the eAD by EMCS.

As the Goods Vehicle Movement Service automates the arrival of the import declaration as close to ‘real time’ as possible in relation to the physical arrival of the goods, you need to make sure that an eAD is in place before the time of the crossing.

You also need to make sure that the date and time of dispatch has passed, before arrival in the UK.

You should include the expected time of crossing as the date and time of dispatch.

Excise goods which do not have a valid UK eAD at the time of arrival of the import declaration are not deemed to be in excise duty suspension in the UK. This may result in you being liable for UK excise duty and your goods could be seized. Financial penalties may also apply.

These rules apply to Goods Vehicle Movement Service locations only.

7.2.9 Goods brought into Great Britain from Ireland and Northern Ireland

Staged customs controls have been extended temporarily for goods that are in Ireland or Northern Ireland immediately before being imported into Great Britain only.

You’ll need to complete an import declaration for excise goods moving from Ireland to Great Britain or goods passing through Northern Ireland from the EU (including Ireland) to Great Britain. As these are controlled goods the declaration cannot be delayed.

You must manually arrive your full import declaration or simplified frontier declaration on the system by 11:59pm on the next working day after the day the goods arrived in Great Britain.

You may delay the entry on EMCS until you have arrived the relevant declaration, which may also be until the end of the next working day. However, you must enter the excise movement guarantee reference on the import declaration.

When you complete the eAD, you will need to tick the ‘deferred movement’ box so that you can enter the correct date of dispatch, which will be in the past.

Goods declared to excise duty suspension that do not have either an eAD in place or the excise movement guarantee reference number recorded on the import declaration are not in excise duty suspension.

7.3 EU VI-1 forms

Check the rules for importing and exporting wine and moving wine products to Northern Ireland.

7.3.1 Wine standards

On EMCS, when moving wine within Great Britain, the only allowable wine product categories are 4 ‘imported wine’ and 5 ‘other’. Any other option (1 to 3) will generate an error message and the movement will not be allowed to be submitted.

For Northern Ireland movement dispatches, all of the following categories are allowable and will not cause error messages.

Wine product category	Explanation
1	Wine without protected designated origin or protected geographical indication
2	Varietal wine without protected designated origin or protected geographical indication
3	Wine with protected designated origin or protected geographical indication
4	Imported wine
5	Other

Entry 17.2 of the eAD completion guide, Submitting an electronic administrative document for excise goods, contains further information on wine categories and how to use them when completing an eAD.

8. Buying and selling duty-suspended goods in warehouse

8.1 General information

Owners of duty-suspended excise goods held in a warehouse may sell their goods in duty suspension at any time.

But the goods may only remain in duty suspension within the excise warehouse if the purchaser is:

• a registered owner
• a person who is not required to be a registered owner in respect of wine, made-wine and energy products
• a non-UK based owner who has appointed a duty representative to act on his behalf
• the authorised warehousekeeper
• not a revenue trader
• a motor and heating fuel warehouse operator or owner of hydrocarbon oil within such a warehouse

If the goods are sold to someone who is not entitled to hold them in duty suspension, the duty on the goods immediately becomes due. The goods must be removed to home use.

The owner of the goods at the time of the sale will be jointly and severally liable to pay duty with:

• the warehousekeeper
• the purchaser of the goods immediately following the duty point
• any duty representative appointed by the owner or the purchaser of the goods

For more information read Registration and approval of excise goods held in duty suspension (Excise Notice 196).

Energy products, wine and made-wine are not deemed to be relevant goods for the purposes of Warehoused Goods Regulations number (WOWGR). This means an owner of these types of goods in an excise warehouse does not need to be a registered owner.

8.2 The seller’s responsibilities

It is in the seller’s interest to find out, before the sale of relevant goods, if the purchaser is:

• a registered owner
• an owner not established in the UK who has a duty representative
• not a revenue trader

Before making any sale you, as the current owner of the goods, should:

• contact HMRC’s excise liaison office and ask for confirmation of the purchaser’s registration
• inform the warehousekeeper that the goods are to be sold and give details of the purchaser’s registration

If you fail to advise the warehousekeeper about a change of ownership of the goods, the goods are liable to forfeiture.

8.3 The purchaser’s responsibilities

When buying warehoused goods held in duty suspension, you should make sure that the seller:

• is a registered owner
• has appointed a duty representative, if not established in the UK
• is the authorised warehousekeeper
• is not a revenue trader

If not, the duty will become due on those goods upon the expiry of the initial period following their deposit in the warehouse — that is 72 hours after they were deposited, excluding certain specified days. This applies even if you’re a legitimate trader who has bought the goods in good faith.

Before making any purchase, you should:

• contact HMRC’s excise liaison office and ask for confirmation of the seller’s registration
• inform the warehousekeeper that the goods are to be purchased and give details of your registration to the warehousekeeper

9. Abandoned excise goods

If you, as warehousekeeper of relevant goods, want to abandon them to HMRC, you must advise the HMRC excise helpline of your request and provide:

• warehousekeeper details:
  • company name, address, telephone number and contact name
  • Warehoused Goods Regulations registration number
  • warehouse approval number for the warehouse where the goods are stored
• owner or duty representative details:
  • company name, address and telephone number
  • Warehoused Goods Regulations registration number if applicable
• details of the goods:
  • stock rotation number
  • description of goods
  • the number of cases
  • quantity in bulk litres

The excise team will consider and carry out any enquiries as necessary. They will advise you if your request has been accepted or will ask you to provide more information. You’ll then receive written confirmation of the decision.

If your request is approved, HMRC will aim to remove the goods as soon as is practically possible. This is normally carried out by HMRC’s designated contractor.

You should update your stock records to show the name of the contractor who removes the goods.

10. Removal of goods from warehouse

10.1 General information

You may remove goods from an excise warehouse for:

• home use on payment of duty, sometimes referred to as released for consumption – but you cannot remove UK manufactured tobacco for home use — read Excise Notice 476: Tobacco Products Duty
• dispatch under duty suspension to other approved UK warehouses, including those on the Isle of Man
• dispatch under duty suspension from a place of dispatch in Northern Ireland to approved persons or premises in an EU member state
• export to countries from the UK in duty suspension
• entitled miscellaneous removals

This list is not exhaustive.

You should contact HMRC before removing goods from the warehouse for any other purpose unless we make a specific reference to that purpose in this notice or in your approval.

Before removal you must:

• prepare the appropriate documents as EMCS does not contain any information of whether the goods have been subject to a previous sale in warehouse that could affect the VAT status of the goods — this information should be contained on any commercial documents accompanying the load
• take account of the goods to be removed and carry out any necessary examination, unless HMRC has agreed otherwise
• write the goods out of your stock account
• make sure that duty is paid or accounted for on removals for home use
• make sure that a valid movement guarantee is provided and recorded on the eAD for all movements in duty suspension — operators of motor and heating fuels warehouses should read Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179) for bulk movements by sea and pipeline
• make sure that you supervise and check the removal is accurate before the goods leave the warehouse

You should carry out sufficient checks to confirm that all your customers are genuine traders who are aware of their responsibilities in respect of excise goods.

You must individually record all removals for stock return purposes and keep a schedule of different types of removals.

HMRC may restrict removals from your warehouse. For example, restrictions may be placed on the removal of tobacco products to home use in the run up to the Chancellor’s Budget.

If you remove tobacco to home use in the period from 1 January to the date of the Budget, read Notice 85C anti-forestalling restrictions: cigarettes.

If HMRC has restricted your approval to specific types of removals, for example, repacking operations and returning the goods to the original supplying warehouse, you may ask to remove goods for a different purpose, such as exports, by asking for a variation to your approval — read Registration and approval of excise goods held in duty suspension (Excise Notice 196). HMRC will consider the requests.

We may revoke your approval if you remove goods for purposes other than those in your approval.

Businesses may apply for certificates of age for spirits to confirm the age of products exported to overseas markets. Certificates are issued by HMRC where the age of UK manufactured products may be verified by checking supporting documents.

You should contact the HMRC excise helpline for more information or email the SDVU at enquiries.sdvs@hmrc.gov.uk.

10.2 Financial security for duty-suspended movements

All duty-suspended movements from an excise warehouse or the location where they were placed into free circulation must be covered by financial security.

Operators of motor and heating fuels warehouses should read Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179) for movements by sea and pipeline.

Read about the financial security required for the different types of duty-free removals from an excise warehouse in section 14.

Authorised warehousekeepers must make sure that financial security for the movement is in place before removing goods from their warehouse.

The movement security required for duty-suspended removals from an excise warehouse may only be provided by the:

• warehousekeeper of dispatch
• the warehousekeeper of receipt — for movements between UK warehouses
• last owner of the goods whilst warehoused — not a duty representative
• transporter

By transporter we mean someone who normally physically transports excise goods. It can also include someone appointed to act as the transporter who sub-contracts the actual transportation to another haulier.

In this instance, while the transporter does not physically transport the goods themselves, they must:

• have a direct connection with the goods being transported
• have a permanent place of business or residence in the UK
• be responsible for making sure that the goods arrive safely at the intended destination
• invoice and receive payment directly for providing the transport

A transporter acting purely as a broker and who only receives commission or an arrangement fee for his transport services cannot provide the movement guarantee.

There are different guarantee arrangements for movements started by a registered consignor, read Registration and approval of excise goods held in duty suspension (Excise Notice 196).

The financial security is a guarantee provided by an approved guarantor who agrees to pay money to HMRC if an irregularity occurs, or is deemed to occur, during a movement of excise goods in duty suspension.

A warehousekeeper, owner or transporter who wants to apply for a movement guarantee should contact HMRC’s financial securities centre.

HMRC only accepts guarantees as a form of security. We’ll issue the draft guarantee form to you when we have agreed your level of security. If you disagree with the level of the guarantee you have the right to an independent review of our decision.

You must ask your guarantor to complete the guarantee form and return it to us. If satisfied, we’ll accept the guarantee and return a signed copy to the guarantor.

Only companies approved by us may act as guarantors. Most banks and insurance companies have this approval, but contact us if you want to check a particular company.

A guarantee is valid only when the named principal has a permanent place of business or residence in the UK.

The cost of maintaining the guarantee is a commercial arrangement between you and the guarantor.

You should be aware that your liability as principal is not restricted to the size of the guarantee. We can assess you for all outstanding duty arising from any irregularity covered by your guarantee. These liabilities may be much greater than the size of your guarantee.

If the owner or transporter provides the security, the dispatching warehousekeeper must hold written confirmation from the principal confirming that the warehousekeeper may use their guarantee.

HMRC will base the level of the movement security on the average amount of duty-suspended on one week’s movements. This is calculated by reference to all movements in the previous 12 months, allowing for seasonal variations.

To decide the level of guarantee, we’ll assess the likely risk to the revenue in each circumstance and will retain the right to require greater levels of security. In particular, we may also ask traders to provide a guarantee which will cover the maximum amount of duty-suspended in a single movement. If we do this we’ll tell you which procedures you must follow.

The minimum level of security required for movement guarantees is £20,000.

In exceptional cases, warehousekeepers or owners of excise goods who move goods in duty suspension infrequently may apply for a movement guarantee at a level below £20,000. Each request is considered on its own merit. The level of the guarantee will be based on the total amount of duty on the goods moving in duty suspension.

We set the following levels:

Potential duty on an average week’s movements	Level of security
less than £1 million	25% of potential duty
more than £1 million but less than £25 million	£250,000
more than £25 million but less than £100 million	1% of potential duty
more than £100 million	£1 million

For all new guarantee holders including owners and transporters, we’ll base our calculations on the anticipated level of duty-suspended in one average week’s movements, subject to the requirements of the minimum level of guarantee. Principals may apply in writing for reductions in the size of the guarantee.

We may refuse to allow any request for a reduction in the level of your guarantee.

Circumstances where we may allow reductions:

If the principal has…	and we have…	the level of security is reduced…
provided security for the previous 2 consecutive years	made no claim against the security and no significant irregularity has been identified in respect of any movements covered by the security	by 50%
provided security for the previous 4 consecutive years	made no claim against the security and no significant irregularity has been identified in respect of any movements covered by the security	by a further 50% (that is 25% of the original level of security) normally subject to a minimum level of £20,000

If we are obliged to make a claim against a reduced level of security, we’ll issue a notice of withdrawal to the guarantor and principal. The level of cover provided by any replacement guarantee will revert to at least 100% of the amounts shown in the table of circumstances.

If we make a claim against a guarantee we’ll critically review your warehousekeeper authorisation and premises approval and, as a result of this action, we may impose additional conditions, ask for additional security or revoke the authorisation or approval for all the sites which you operate.

10.3 Keeping records of the financial guarantee

You, as the warehousekeeper or registered consignor, do not need to keep a record for this purpose providing that for each movement you have information on the:

• consignee of the goods
• reference number of the removal document, for example — the ARC
• date of removal
• description of the goods
• quantity of the goods

Transporters and owners must make sure that their records comply with this requirement.

10.4 More information on financial security

10.4.1 Changes of principal in transit

Changes of principal are not allowed. The principal has liability for the whole of the movement and this liability is not discharged until the dispatching warehouse or registered consignor receives a satisfactory report or certificate of receipt.

10.4.2 Joint movement and premises guarantees

If your security covers premises and movements, you must calculate each element separately and then add them together to get a total figure, read Registration and approval of excise goods held in duty suspension (Excise Notice 196).

10.4.3 Subsidiary or associated companies

A guarantee may be taken out in the name of a parent company that also provides cover for subsidiary or associated companies. In these circumstances, all the companies covered must be listed in an annex to the guarantee.

When this option is exercised, the month-end stockholding of all the premises owned by all the companies and all the movements for which the companies provide security must be included when calculating the size of the guarantee.

Multi-site security of premises gives commercial benefits in terms of the overall level of security required, but it carries more risks, as one significant irregularity on the part of any of the companies would result in the loss to the entire group of any reductions granted, it could also mean the cancellation of your entire guarantee.

10.5 Checking the validity of guarantees

It is the dispatching warehousekeeper’s or registered consignor’s responsibility to make sure that the guarantee for the movement is given (read paragraph 10.2).

You should confirm that the guarantee is given by one of these people before you complete the appropriate section of the eAD on EMCS. If you’re not certain that the guarantee details given to you for the movement are valid, you should make enquiries of the owner or transporter to satisfy yourself that the guarantee given is appropriate for that movement.

If you’re not satisfied you should not accept the guarantee.

To check if a guarantee is valid you should contact HMRC’s excise liaison office and give them the:

• principal’s name
• amount of duty-suspended on the movement
• reference number of the guarantee

They will tell you if the guarantee is valid and will keep a record of your request. If you make a written request, they can make this record available to you. They may not disclose any further information.

You should not release the goods without a valid guarantee recorded on the eAD. If you do release the goods without a valid guarantee or without permission to use that guarantee, then you, as the warehousekeeper or registered consignor, have not complied with your legal responsibilities and may be liable for the duty.

10.6 Review of security levels

If your trading pattern changes and you need to increase or decrease the level of guarantee you should write to HMRC’s financial securities centre. You must keep a record of checks on your trading pattern.

We’ll also carry out checks to make sure that your level of security is satisfactory and may ask for more financial security as a condition of your approval if:

• your trading pattern changes
• we’ve identified weaknesses in your system

10.7 Claims against movement guarantees

HMRC will only claim against the guarantee if either you (the person who provided the guarantee) or the person considered to have a joint and several liability has failed to pay the assessment within 45 days.

If the guarantee covers both premises and movements, we’ll still claim against the guarantee, claims will not be restricted to either premises or movements.

If we make a claim against the guarantee, we’ll ask the guarantor for payment.

You should note that:

• the ‘evergreen’ facility of the guarantee allows automatic restitution of the original level of security where, after the submission of a claim, neither party exercises the right to withdraw
• this will affect any ‘established trader’ discount
• the level of your guarantee does not limit the liability of the debt

If, after the claim against the guarantee, the guarantor gives HMRC a 30-day notice of withdrawal from the guarantee you’ll need to submit a new movement guarantee with us.

If we decide to lapse your guarantee we’ll give your guarantor a 30-day notice of withdrawal.

11. Removal to home use by duty payment (release for consumption)

11.1 General information

You can only remove excise goods on payment of duty from your warehouse within the conditions set out in your approval. You must take all the necessary steps to pay the duty accurately and by the due dates. If you do not you may be prosecuted or receive a financial penalty. This could lead to restriction or withdrawal of your warehousekeeper authorisation.

Duty is due when the excise goods are removed to home use from a warehouse or are made available for consumption. Read examples of how to calculate excise duty on alcohol and alcoholic beverages removed from an excise warehouse in section 16.

The warehousekeeper must make sure that the duty has been paid or accounted for before removal from the warehouse to home use.

Warehousekeepers may pay duty by cash equivalent or duty deferment.

Operators of motor and heating fuels warehouses should read Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179).

11.1.1 Additional information of payment of excise duty in Northern Ireland (the excise duty off-set mechanism)

If you move excise goods from Great Britain to Northern Ireland you may be required to calculate excise duty on arrival in Northern Ireland. You should record any excise duty calculations you make.

Find more information on the excise duty off-set mechanism in section 17.

11.2 Payment documents

The systems, procedures and records to be kept and prepared when removing excise goods to home use will have been agreed at the time when your approval and authorisation was granted. You must follow these procedures without exception.

Before you remove goods to home use you must use the appropriate payment warrant documents. This may be completed manually or online using either our online warrant or XML service.

When payment is made by cash equivalent the warrants are:

If you’re approved to defer payment of the excise duty and want to account for the duty using the deferment process, the warrants are:

But if you’re approved for a scheduling arrangement you should submit either the W5D or W6D warrant and schedules in accordance with the scheduling agreement (read paragraph 11.5).

Send paper warrants by post to the National Warrant Processing Unit. Each warrant must contain a consecutive reference number (CRN). This number can consist of up to 7 numbers with no other characters or spaces included.

You must not use the same number twice in one month.

If you submit a paper warrant and your consecutive reference number contains more than 7 numbers or is duplicated, it will be rejected and HMRC will return it to you. You’ll then need to amend your consecutive reference number and resubmit the warrant.

You must not remove any goods until you’re certain your warrant has been accepted.

You should:

• number your warrants consecutively in an annual series, starting from your first stock accounting period in the year
• use a separate, unique numbering sequence for each warehouse you operate

11.3 Online service for duty warrants for alcohol and tobacco goods

You can submit W5 and W6 remittance warrants and W5D and W6D duty deferment warrants online through the Alcohol and Tobacco Warehousing Declarations (ATWD) online service.

This online service:

• pre-populates standing data, including warehouse details making it easier to complete the form
• provides a drop-down menu of the main registered owners storing goods in your warehouse
• automatically calculates the amount of duty due when the type of tax is entered as well as sub-totals, the amount of VAT and the grand total
• provides a comprehensive search facility including a view of previously submitted warrants
• will not allow the same consecutive reference number to be used twice
• provides an immediate on screen acknowledgement of receipt
• voids postal delays
• confirms the approval of deferment warrants (the equivalent of the certified copy 2) and will usually be sent to you within a few minutes rather than having to wait for HMRC to reply by post
• provides a 24 hour service

11.3.1 How to submit warrants online

You’ll need to register and enrol for the service to use the ATWD online service.

During the registration process you’ll be given a user ID, asked to choose a password and enter your warehouse ID and postcode.

You should receive an Activation Code from HMRC within 7 days. You’ll need to use this to activate the service.

After you receive the Activation Code, you can sign in to:

• access the service
• submit your warrants electronically

If you have any problems enrolling at the Government Gateway contact the HMRC EMCS online services helpline.

11.3.2 XML channel

The XML Direct Submission Service allows you as a warehousekeeper to send data directly from your computer system to HMRC. It removes the need to complete forms on a web screen, or paper, or to re-key information.

You can submit large numbers of warrants directly from your duty management systems using XML, rather than re-keying the warrants onto an online screen. The XML format for exchanging information between computer systems is a stable and widely adopted technology. XML does not allow us to access or interrogate your computer system. We’ll only be able to receive information that you send us, confirm receipt and pass back messages to you about invalid entries or format errors.

11.4 Payments other than by deferment

If you’re not approved to use deferment arrangements, as a warehousekeeper before removing goods from your warehouse you, or the owner, must:

• complete remittance advice: W5 (for alcohol products), W6 (for tobacco products), or W50 (for oils) for the removal
• submit the W5, W6 or W50 with your remittance
• make sure you keep the copy W5, W6 or W50, certified as duty-paid by the National Warrant Processing Unit, before the goods leave the warehouse

Remittances should be made by either:

• Bacs (Bankers Automated Clearing System)
• CHAPS (Clearing House Automated Payment System)

We no longer accept any other form of payments.

The following bank details should be used for all payments relating to Alcohol and Tobacco Warehouse Declarations (ATWD) on W5, W6 and mineral (hydrocarbon) oil duty on W50 only:

Sort code	Account number	Account name
20 05 17	303 364 91	HMRC Indirect Misc. Receipts

For overseas payments you will need to use this new IBAN and SWIFT/BIC code.

Account number (IBAN)	SWIFT/Bank identifier code (BIC)
GB20BARC20051730336491	BARCGB22

You should use reference National Warrant Processing Unit, followed by your consecutive reference number when making payment.

Due to Bacs payment scheme restrictions, HMRC can no longer collect direct debits over £20 million. If you have a payment to make which exceeds £20 million you should use a different payment method, such as CHAPS.

The National Warrant Processing Unit receives monies 24 hours after payment is made and aims to process the warrant and payment within 48 hours.

11.5 Deferment of excise duty

If you’re a warehousekeeper or owner of excise goods and want to apply for approval to defer daily payment of excise duty and make monthly direct debit payments, you must follow the how to use your duty deferment account guidance.

Before HMRC approves your application, you must take out a guarantee to cover your total monthly liabilities for the particular category of duty or VAT concerned.

If you repeatedly exceed your guarantee level or deferment limit, your duty deferment facility will be suspended or withdrawn. If this happens you’ll be asked to make immediate payment. You’ll not be able to remove any goods until the National Warrant Processing Unit has received your payment. You can provide supplementary guarantees to cover liabilities in periods of greater trade.

We issue deferment statements to duty deferment holders. If you’re the duty deferment holder, you should make sure that this statement is correct.

You should contact the Central Deferment Office immediately if:

• you find any errors on the deferment statement
• any of your customers advise you that they have found errors on their deferment accounts

You must take all the necessary steps to pay duty accurately and by the due dates. If you do not you may:

• be prosecuted
• receive a financial penalty
• receive a restriction or withdrawal of your warehousekeeper authorisation
• have your deferment arrangements withdrawn

For all removals from your warehouse under deferred duty arrangements, you must make sure that the National Warrant Processing Unit receives completed W5D and W6D forms for all that day’s removals, no later than the end of the following working day, unless HMRC has agreed scheduling arrangements.

We’ll confirm receipt by returning a stamped copy of the W5D or W6D to you. But the return of copy 2 only means that we have received the W5D or W6D.

You may want to delay removing the goods from your warehouse until you hold evidence that your, or the owner’s deferment account has been debited.

11.5.1 Excise Payment Security System (EPSS)

You may be eligible for authorisation under EPSS to make deferred payments of excise duty without providing a guarantee for your excise duty liabilities. This only relates to removals from warehouse. It does not apply to receipts by a registered consignee who must provide full security.

If you’re making deferred payments of excise duties when excise goods (alcohol, tobacco and mineral oils) are removed to the UK market from an excise warehouse or upon importation, you should complete an application for authorisation to defer payment of excise duties without a guarantee.

Once your application is received it will be considered in line with our authorisation criteria.

You may also be eligible for authorisation to make deferred payments of import VAT without a guarantee under Simplified Import VAT Accounting.

11.5.2 Liability

As a warehousekeeper you’re liable for duty, even if you use an owner’s deferment account. You must complete either the W5D for alcohol products, W6D for tobacco products or HO10 for oils. Only you or the owner of the goods in warehouse may defer duty on duty-paid removals.

You as warehousekeeper will be liable for the duty and a financial penalty if you allow any goods to be removed from your warehouse before the deferment account has been debited with the duty declared on the W5D or W6D declarations.

For details about the submission of the HO10, read Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179).

11.6 Scheduling for alcohol and tobacco goods only

As a warehousekeeper you may use schedules to account for excise duty when payment is by duty deferment. You must write to the National Registration Unit to request your approval to be varied. You must satisfy HMRC that your accounting system is suitable for scheduling. We’ll write to you if we accept your request to operate a scheduling arrangement. You can appeal against our decision if we do not accept your request.

You must submit a schedule of removals to the National Warrant Processing Unit twice a month. There are 2 designated periods. Period 1 runs from the 15th to the end of the calendar month. Period 2 runs from the first of the next calendar month to the 14th of that second month — the end of the normal excise duty deferment period. On the 29th of the second month we debit the total sum from your account.

To account for duty under scheduling arrangements, for each period:

• enter on form W5D or W6D the total of all removals for each tax type code
• submit the return for the first period to the National Warrant Processing Unit within 4 working days of the end of the period
• make sure that the accounting centre receives the return for the second period, by the end of the following working day after the final day of the period

Whenever there is a change in a rate of duty or VAT part way through a period, you must send in 2 separate returns for each return you normally make (W5, W6, W5D or W6D). One must show details of removals made before the change with the duty and VAT calculated at the old rates. The other must show details of removals made after the change, with the duty and VAT calculated at the new rates.

11.7 Accounting for VAT on goods removed from warehouse on payment of duty

11.7.1 General information

VAT may be due when goods are removed from warehouse on payment of duty. But this depends on what happens to the goods while they are in the warehouse.

This section provides information on the VAT position when goods are:

• imported from outside the UK and EU
• acquired in Northern Ireland under duty suspension from an EU member state
• sold whilst in a UK warehouse
• manufactured in the UK

11.7.2 When import VAT is due

Import VAT is the VAT due on importing goods. You’ll find more information about this in Imports (VAT Notice 702).

11.7.3 When acquisition VAT is due

Excise goods acquired in Northern Ireland from an EU member state under duty suspension are liable to acquisition VAT.

This will be due when the goods leave the UK warehouse on payment of duty, but only if:

• there has been no subsequent supply of the goods while in the Northern Ireland warehouse
• the goods have not undergone a process that changes the nature of the product

If acquired goods are sold in a warehouse, or undergo a process that creates a new product (read paragraph 11.7.5), that supply or process ends the liability to acquisition VAT. However supply VAT may be due. The same rules apply if you transfer your own excise goods under duty suspension from an EU member state to Northern Ireland.

Acquisition VAT is calculated on the value of the goods, including excise duty. There is more information about acquisitions in The single market (VAT Notice 725).

Acquisition VAT is declared as an output on the VAT Return and may be treated as input tax on the same VAT Return, subject to the normal VAT rules.

When you, as the warehousekeeper, submit warehouse payment warrants appropriate to these acquisitions, insert the words ‘ACQ VAT’ in the ‘Amount of VAT’ box. You should also complete the ‘Value for VAT’ and ‘Rate of VAT’ boxes.

To support acquisition VAT declarations on the VAT Return, the owner of the goods will need to make sure the audit trail links the VAT Return entry to the warrant removing the goods to home use. It’s up to the warehousekeeper and owner to agree how this is done.

Although not mandatory, one way to provide this information is to produce for every owner, each calendar month, schedules containing the:

• community status of the goods
• warehousekeeper’s name and address
• owner’s name, address and VAT number — must be the same owner when goods enter and leave the warehouse
• stock accounts
• product description and quantity
• date removed from warehouse
• warrant number
• duty-exclusive value of the goods
• amount of excise duty paid or deferred
• VAT on duty-inclusive value

You should keep schedules for your own goods and for each owner. You should give one copy of the schedule to each owner before the 12th day of the month after the month of removal and keep one copy with your own records.

If the owner of the goods is not registered for VAT in the UK, you must account for any acquisition VAT on the warehouse removal warrant.

11.7.4 Supply VAT

When goods are sold within warehouses in the Great Britain and within warehouses in Northern Ireland, the supply is disregarded for VAT purposes only if the sale is followed by another before the goods leave the warehouse on payment of duty. This means that it is only the final sale in warehouse that is liable to supply VAT, and this is paid by the owner of the goods on removal to home use.

The value for VAT and the amount of VAT to be paid is included in the appropriate sections of the warehouse removal warrants.

For alcohol and tobacco, these are the W5 or W5D and W6 or W6D.

For oils, the excise duty is accounted for on the HO10 with the supply VAT being accounted for on form VAT 908.

UK manufactured goods are only liable to supply VAT if they are sold while in warehouse.

The VAT treatment of supplies of associated services is explained in Tax warehousing (VAT Notice 702/10).

11.7.5 New products through processing

A process which creates a new product:

• means that the tariff classification changes
• may alter the VAT liability of the goods

Any ‘supply VAT’ or ‘acquisition VAT’ due in Northern Ireland on the original goods is no longer due. The new goods become UK produced goods for VAT purposes.

The following processes change the character of goods and create a new UK product when they are performed in:

• an excise warehouse — alcoholic liquids:
  • fortifying made-wine
  • fortifying wine
  • mixing beer or wine with made-wine to produce made-wine
  • producing beverages or foodstuffs of low alcoholic strength qualifying for duty relief
  • rectifying and compounding spirits
  • ‘rendering’ made-wine sparkling — that is aerating or carbonating made-wine
  • the maturation and processing of plain spirits until they can legally be defined as whisky
  • the blending or marrying of different whiskies
• registered premises — beer, wine, cider and perry:
  • blending
  • mixing including making shandy and low alcohol drinks
  • dilution
  • pasteurisation
  • carbonation
  • sterile filtration
  • de-alcoholisation
  • fortification
  • the fermentation and processing of fresh grapes, or the must of fresh grapes, until they can legally be defined as wine
  • rendering wine sparkling, including disgorging
  • rendering cider sparkling
• mineral oil production warehouses:
• registered tobacco premises or a factory — cigarettes include:
  • leaf to rag
  • rag to cigarette
  • leaf to finished product
  • leaf to blended and flavoured rag (prior to pressing)
  • blended and flavoured rag (prior to pressing) to finished product
  • leaf to filler (cigars)
  • filler to cigar

11.7.6 Deficiencies in warehoused goods — accounting for VAT

Any deficiencies of warehoused goods are treated as though they have been removed from the warehousing regime. When deficiencies of goods are charged with duty, VAT not already paid on those goods will also be charged.

Any acquisition or supply VAT on goods from an EU member state which has not been accounted for should be accounted for when deficiencies occur.

Deficiencies of home-produced goods are not to be charged with VAT unless the goods have been supplied in warehouse before the loss.

In each case, the VAT may be deducted as input tax, subject to the normal rules.

11.8 Refunds of excise duty

Unless you have overpaid excise duty in error, HMRC will not refund excise duty. But, there are some circumstances where you can claim duty drawback.

You’ll find more information in excise duty drawback (Excise Notice 207).

12. General information

12.1 Overview

Before removing goods from your warehouse to other approved persons or premises in the UK you must make sure that you’re sending the goods to someone who is approved to receive them. Whilst EMCS will validate the consignee’s excise ID and the class of goods they are approved to receive, the system will not verify their name and address.

You should contact HMRC’s excise liaison office to get confirmation of the consignee’s approval details. If you ask us to confirm whether or not the consignee is approved to receive those goods, we can only reply ‘yes’ or ‘no’. We cannot provide any details.

For EMCS movements, access EMCS and complete a draft eAD. Once the eAD has been validated and the ARC has been allocated and received you may dispatch the goods from your warehouse.

You must provide the person accompanying the goods with a copy of the eAD or a commercial document on which the ARC is stated either in:

• paper form
• electronic form — read paragraph 2.1

If EMCS is not available to complete and submit the eAD, you should start the movement using fallback procedures (read paragraph 3.2).

For movements outside of EMCS, complete the appropriate accompanying documents to send with the goods.

Make sure that a movement guarantee has been provided. If the movement guarantee is given by the owner of the goods or the transporter, you can contact HMRC’s excise liaison office and ask if the details are valid.

Operators of motor and heating fuels warehouses should refer to Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179) for bulk movements by sea and pipeline.

If you, as the warehousekeeper are also the owner of the goods and have been paid or expect to be paid in cash for a sale or supply of duty-suspended alcohol products (spirits and spirits based beverages, beer, wine, made-wine, cider and perry) exceeding 10,000 euros (or equivalent in other currencies) you must complete and send form W7 Notification of cash payments before dispatching the goods.

It may be commercial practice for customers to pay cash in 2 or more instalments which individually are below the 10,000 euros notification threshold but the total sale will exceed this amount. In these circumstances, you must notify HMRC on form W7 when the first cash payment is received.

Removals from Northern Ireland warehouses can take place to either an approved person or premises in the UK or in an EU member state. You must still follow the rules in this section.

You should not allow the goods to leave your premises until you’re satisfied that a valid guarantee is in place and recorded on the accompanying documents.

As a dispatching warehousekeeper it is your responsibility to make sure that all the conditions that apply to any removal from your warehouse are complied with. If you do not, you’ll be liable to pay all duties.

12.1.1 Additional information for removals from Northern Ireland warehouses

Removals from Northern Ireland warehouses can take place to either an approved person or premises in the UK or in an EU member state. You must still follow the rules in this section.

12.1.2 Additional information for Northern Ireland consignors who split movements of energy products on EMCS

If you intend to split consignments of energy products in duty suspension for dispatching to destinations in an EU member state, follow the correct procedure for splitting on EMCS in paragraph 2.4.

12.2 Preparing excise goods for transport

HMRC do not insist that you seal containers used for transporting cased goods, but you may want to do so for security reasons. In this case you should show details of the seals on the eAD.

You are responsible for making sure that the transport you use meets all your business needs and that the transporter complies with HMRC and UK requirements. If you provide the movement guarantee, you may be liable for the duty on any missing goods.

For casks moved by open (unsealed) transport, you must:

• dip each cask, measure and record each bung and wet dip
• test spirits for strength
• hard bung each cask
• make sure that you separately identify all casks on dispatch documents with details of respective dips and strengths
• advise the HMRC excise helpline if you discover any irregularities or the receiving warehousekeeper tells you about irregularities, for example, evidence of tampering involving goods received

You should be aware that EU requirements will also apply for excise goods being transported between Northern Ireland and an EU member state.

12.3 Removals under groupage contracts

If you want to remove goods under a groupage contract, you must satisfy conditions which include that:

• the movement takes place under a single transport contract for the goods
• a printed version of the eAD or commercial document containing the ARC, or other required movement documents must always accompany the goods to which they relate, these documents can be in an electronic format (read paragraph 2.1)
• the journey time stated on the relevant accompanying documents allows for the groupage process — there can be no storage at the premises where the consolidation takes place
• the movement is not unduly delayed by groupage
• additional commercial documents cover the movement of the goods from the warehouse to the non-approved premises
• the transporter notifies the consignor of any identified losses
• if you group duty-suspended and duty-paid goods, you must make sure that you load the duty-paid goods before the duty-suspended goods

12.4 Cancelled movement

A warehousekeeper may cancel a movement for a submitted eAD on EMCS providing the goods have not been dispatched from the warehouse. This will normally occur where the dispatching warehouse or the consignee recognises from a submitted eAD that the delivery order is incorrect or that the order has simply been cancelled, for example for commercial reasons.

If the goods have already been dispatched the cancellation procedure cannot be used and the dispatching warehousekeeper must use the change of destination procedure (read paragraph 12.7).

You may submit a change of destination to return the goods to your own warehouse.

12.5 EMCS alert and rejection messages

Consignees are able to reject an eAD. They may do this because the consignment is not recognised, is materially wrong or there is some other problem that prevents the consignee from receiving the goods. A consignee can send a rejection message on EMCS at any point after the eAD for the consignment has been raised, up until the goods reach their destination.

If you, as consignor, receive a rejection message and the goods have not been dispatched, then you may be able to cancel the eAD. If the goods have already been dispatched, you’ll need to follow the change of destination procedure to bring the goods back to you or to move them to some other approved person or premises.

Consignees are also able to submit alert messages on EMCS. An alert message indicates that the consignee believes that there is a problem with the information on the eAD for a particular consignment, for example, the quantity is not what they expected. As you cannot respond back to an alert message through EMCS, you should discuss any problems with the consignee outside EMCS.

If the consignee chooses to accept the consignment, you do not need to take any further action. If they decide they do not want the consignment, then you may be able to cancel the eAD if the goods have not been dispatched. If the goods have already been dispatched, you’ll need to follow the change of destination procedure in order to bring the goods back to you or to move them to some other approved person or premises.

12.6 Shortages during a duty-suspended movement

Shortages found on receipt of the goods should be reported by the consignee. HMRC will charge duty on shortages unless you can prove that the shortage was due to an accident or natural causes. Liability for the duty during the course of a removal rests with the person who provides the movement guarantee. Any other person who participated in the irregularity and who was aware or should reasonably have been aware, that it was an irregularity, is jointly and severally liable to pay the duty with the person who provided the movement guarantee.

We may remit the duty providing you:

• can prove that the loss is accidental or due to natural causes
• follow all the conditions and procedures set out in this notice
• have followed other written directions from us

12.7 Change of destination

A consignor can change the destination of a movement within EMCS, either in the course of the movement or following receipt of a refusal or rejection message from the consignee through EMCS. The warehousekeeper must access EMCS and amend the appropriate destination fields on the eAD which includes selecting a new place of delivery and, if appropriate, new consignee for delivery.

This can be the warehousekeeper themselves if the goods are to be returned to the original dispatching warehouse (read section 5), in which case a report of receipt must still be submitted.

A destination for the movement of goods starting in the UK may only be amended if the new destination is a tax warehouse in the UK.

A destination for the movement of goods starting in Northern Ireland may only be amended if the new destination is:

• a tax warehouse in the UK or an EU member state
• registered consignee an EU member state
• temporary registered consignee in an EU member state
• place from where the goods will leave the UK or EU
• place of direct delivery in an EU member state

It is in your interests to advise the transporter to make a note on the printed copy of the eAD or the commercial document containing the ARC of the:

• date and time, you advised them of the change of destination
• new place of delivery and new consignee’s details

The original ARC will continue to apply to the consignment, even where there is a change of destination to a new consignee.

If EMCS is not available to complete and submit the change of destination message, (read paragraph 3.3) use the fallback procedures.

12.8 Discharge of a movement

The movement is discharged when you have received a report or certificate of receipt. For discharging movements of goods removed for export outside the EU read section 13.

For EMCS movements, the receiving warehousekeeper must send a report of receipt through EMCS to you within 5 days of receipt of the goods.

Dispatching warehousekeepers must:

• make sure that they access EMCS regularly and check that they have received the report of receipt
• check the report of receipt for any discrepancies
• record the discharge of the movement in their records and complete the appropriate section of the W1 return

If you have not received a report of receipt for an EMCS movement, or a manual certificate of receipt for a movement under simplified procedures within 5 days after the expected delivery date, you must inform HMRC in writing.

For alcohol and tobacco products, HMRC will accept notification of undischarged movements on your monthly W1 returns.

If EMCS is not available in the UK or an EU member state, you may receive a fallback report of receipt from the consignee in the EU member state. This document will be sent through the authorities of the EU member states concerned. When you receive a fallback report of receipt, you should check EMCS to find out if the electronic report of receipt message has already been submitted.

If the report of receipt has:

• been submitted on EMCS, the fallback report of receipt can be discarded
• not been submitted on EMCS, the consignee will submit this message to discharge the movement when EMCS is available in the EU member state — you should keep the fallback report of receipt until the EMCS report of receipt is received

If EMCS is available in the receiving EU member state, but the consignee is unable to complete the report of receipt, a manual closure may be required. This must be done by the UK or dispatching EU member state’s authorities, HMRC will carry out the manual closure.

Both you and the consignee should receive a message through EMCS confirming that the movement has been manually closed.

12.9 Alternative evidence of discharge of a movement

HMRC accepts that it may not always be possible for a report of receipt to be returned to the warehousekeeper and we may, in exceptional circumstances, allow other evidence to be provided. Other evidence will only be accepted if the warehousekeeper or provider of the movement guarantee can show that they have made every reasonable effort to get the report of receipt from the consignee.

Where every effort has been made, and the report of receipt is not available, we’ll accept the following documents as alternative evidence to discharge the movement:

• a receipted copy of the eAD or commercial document which accompanied the goods
• for movements between Northern Ireland and an EU member state, an official letter from the fiscal authorities in the consignee’s country confirming that the goods covered by the relevant eAD (with ARC quoted) have been received by the consignee — find contact details for the fiscal authorities in EU member states by searching Customs Office Information on the Europa website
• for intra-UK movements alternative commercial evidence

This evidence must be produced to us within 4 months of the start of the movement.

In exceptional circumstances, the consignor may be unable to obtain any of the accepted forms of evidence showing that the goods have arrived at their intended destination. If so, we’ll consider other evidence on a case-by-case basis. But the person who provides the movement guarantee must be able to demonstrate that they have tried to get alternative evidence. This other evidence, as a minimum, must show not only that all the goods were received at the consignee’s premises, but that they were also entered into the receiving warehouse’s duty-suspended stock records.

If no report of receipt is received, we’ll issue an assessment to the person providing the guarantee for the outstanding duty 4 months after the date of dispatch. If necessary, we may ask the guarantor to meet any liability.

You may be entitled to reimbursement of the paid duty if you can subsequently prove that the irregularity occurred outside the UK. In such circumstances you should contact HMRC’s excise liaison office.

In the case of Northern Ireland you may be entitled to reimbursement of the duty-paid if you can subsequently prove that the irregularity occurred outside the UK, that the duty was due in an EU member state and you have paid any duty due to that member state. In such circumstances you should contact HMRC’s excise liaison office.

12.10 Irregularities

If you become aware that goods dispatched by you have not arrived at their destination, you must contact the HMRC excise helpline immediately. You must also try to find out what happened to the goods.

Where there’s a serious incident affecting the movement, for example an accident or theft, you should contact the EMCS helpline immediately. HMRC will raise an event report on EMCS, based on the information you provide. This message will be visible to both consignor and consignee.

For movements between Northern Ireland and an EU member state, when an event report is raised by the authorities in an EU member state there may be documents attached, which you’ll not be able to view on EMCS. In these cases the message you receive will tell you that there is an attachment that has been removed.

You can get a copy of the attachment by [contacting the [HMRC EMCS helpline(https://www.gov.uk/government/organisations/hm-revenue-customs/contact/excise-movement-and-control-system-emcs-enquiries).

Where you fulfil your legal responsibilities in respect of goods removed under cover of an eAD and an irregularity occurs during the movement, if you did not provide the movement guarantee and are not responsible for the goods reaching an excise duty point, you’re not liable to pay the duty due.

The person who provided the movement guarantee is responsible for the liability to pay the duty on goods that fail to reach the consignee.

The guarantee may be provided by the:

• dispatching warehousekeeper
• receiving warehousekeeper (for movements between UK warehouses only)
• transporter
• owner of the goods — this is the last person who owned the goods in the warehouse

In the case of an irregularity involving goods moving between Northern Ireland and an EU member state the rate of duty which applies will depend upon the EU member state in which the loss occurred, was detected or was deemed to have occurred.

If the consignee retains any excess goods, they take on the duty liability for those goods. They should note the details of excesses on the report of receipt. You should check your stock and make sure that you make any adjustments to your stock records.

13. Exports to countries outside the UK

13.1 General information

This section sets out your requirements as the dispatching warehousekeeper, owner of goods, customs agent or transporter when consigning excise duty-suspended goods from the UK to the point where the goods leave the territory of the UK. Movements from a Northern Ireland approved person or premises to an EU member state are not covered by this section.

Warehousekeepers must:

• not allow goods to leave their premises without a valid EMCS declaration (eAD)
• make sure Customs Handling of Import and Export Freight (CHIEF) arrangements are in place — the exception to this is where goods are declared under local clearance procedures or customs supervised exports (read paragraph 13.5), in which case the EMCS declaration is not required

The movement will remain open and the guarantor liable until a report of export is issued by HMRC. This will only occur if the following conditions are met. The:

• export declaration has been completed as per the requirements for an EMCS duty-suspended movement
• the export declaration has been departed correctly and reached a satisfactory final status

It is essential that the EMCS declaration (read paragraph 3.2) (eAD) and the export declaration are cross referenced to enable a satisfactory discharge (read paragraph 13.2).

If export procedures have been correctly followed, a report of export will be issued by HMRC to finalise the eAD and discharge the guarantor’s liability.

If HMRC identifies any discrepancies, the eAD will remain open and the guarantor will remain liable.

Find out more information about export declarations which remain undischarged in paragraph 13.10.

13.2 Declaration process

13.2.1 EMCS declaration

You can find detailed information on the completion of an EMCS declaration in the EMCS How to register and use guidance.

You should also refer to Calculation examples for alcohol duties (PDF, 157 KB, 2 pages) for more details about what information must be included in which fields.

The dispatching warehousekeeper is responsible for declaring the consignment to EMCS and making sure a valid guarantee is in place.

If the movement guarantee is provided by the owner of the goods or the transporter, you should consider contacting HMRC’s excise liaison office and ask if the details given to you are valid.

The warehousekeeper must make sure the ARC or, in the event of fallback, that the relevant local reference number is passed to the person responsible for submitting the CHIEF export declaration.

Failure to follow the correct procedure will cause the movement to remain open and the guarantor will remain liable.

In addition to the general EMCS information detailed in the user guide, you must make sure the following is included:

• movement type is either ‘the customs declaration lodged in the UK’ — the destination type’ as ‘export’
• for Northern Ireland movements, the movement type is either ‘the customs declaration lodged in the UK’ or a customs declaration lodged in an EU member state’ — in both cases you must show the ‘destination type’ as ‘export’
• customs office of export — the place where the export declaration is lodged
  • office of export will either be a port or airport in the UK where the goods are presented for export
  • for Northern Ireland movements, the customs office of export can also be a place where the export declaration is being lodged in an EU member state
  • all customs office reference numbers are available in the Customs Office List

When using the HMRC online service, once you have submitted your EMCS declaration you’ll receive a submission reference number — this is not the unique ARC.

You’ll then need to check your ‘view messages screen’ from the ‘at a glance’ page to check if the declaration has been successful, and to view the allocated ARC for your movement. If unsuccessful, you’ll receive an error message.

You’ll need to correct the error, and resubmit the declaration until an ARC has successfully been allocated. Goods must not be dispatched before this.

If you use commercial software you should contact your provider for the correct procedure.

Once you have successfully submitted your EMCS declaration, you’ll receive a 21-digit ARC. The code must be entered on either a printed eAD or any other commercial document, and must accompany the goods. In the event of EMCS downtime you must follow the correct fallback procedures (read section 3).

Failure to follow the correct procedures will cause the EMCS movement to remain open and the guarantor will remain liable.

13.2.2 CHIEF export declaration

Detailed information on the export process is available in:

In addition to the general export procedures and requirements, for consignments under excise duty suspension, you must make sure the following is included on the CHIEF declaration:

• a valid customs procedure code is in box 37
• an accurate commodity code is in box 33, this should match the commodity code declared on EMCS
• accurate quantities in box 38 (net weight) and box 41 (supplementary units)
• for indirect exports from an EU member state, that leave Northern Ireland, the office of exit in an EU member state in box 29
• a valid ARC in box 40 of the export declaration in the following 21 character format example:

Class	Document type	Reference
Z	AAD	14GB00000000123456789

Do not shorten or abbreviate the ARC reference number. If EMCS is not available a fallback accompanying document must accompany the goods and should be formatted as:

Class	Document type	Reference
Z	FAD	This will be the unique reference number for the consigned goods

Follow the fallback procedures in section 3 if:

• the export declaration must achieve a valid import control system (ICS) code following departure and exit:
  • ICS 60 for direct exports
  • ICS 62 for indirect exports
• any other ICS code will result in both the Export declaration and the EMCS declarations (read paragraph 13.10) remaining open and the guarantor liable

When the CHIEF export declaration process is not followed correctly, you’ll create an excise duty point. HMRC may raise an assessment against the guarantor as declared on the EMCS declaration and also consider penalty action. A review of any relevant approvals will be considered if we have concerns about compliance.

13.2.3 Transit

If you’re exporting goods from the UK or EU under a transit procedure, you’ll need to complete:

• an EMCS declaration
• the CHIEF export declaration
• a transit declaration

EMCS declaration

An eAD is completed on EMCS.

CHIEF export declaration

An indirect export declaration is completed on the CHIEF system.

You must show the:

• appropriate office of exit in box 29
• ARC generated by the EMCS system in box 40, using administrative accompanying document (AAD) or the fallback accompanying document for fallback in the previous document field
• Additional Information (AI) code TRANS in box 44

Transit declaration:

A T2 community transit declaration is completed on the New Computerised Transit System (NCTS). The movement reference number (MRN) of the export declaration must be included in box 40.

General procedure:

• the goods are presented to both the office of export and the transit office of departure in the UK
• a release for both the export and the transit procedures must be obtained before moving the goods
• the goods and transit accompanying document (TAD) must be presented at each Office of Transit
• the goods are presented together with the eAD at the office of exit and with the transit accompanying document being presented at the New Computerised Transit System office of destination

13.3 Cash payment

If you, the warehousekeeper, are also the owner of the goods and have been paid or expect to be paid in cash for a sale or supply of duty-suspended alcohol products (spirits and spirits based beverages, beer, wine, made-wine, cider and perry) exceeding £9,000 or equivalent in other currencies, you must complete a notification of cash payments for W7, and send it before the dispatch of the goods.

It may be commercial practice for customers to pay cash in 2 or more instalments which individually are below the £9,000 notification threshold but the total sale will exceed this amount. In these circumstances, you must notify HMRC on form W7 when the first cash payment is received.

If you intend to split a consignment of energy products in excise duty suspension for export from the UK, you must follow the correct procedure for splitting on EMCS (read paragraph 2.4).

13.4 Accompanying excise documents

Any movements from the UK excise warehouse to the place where the goods leave the territory of the UK are duty-suspended movements and therefore must travel with an accompanying document.

This document can take the form of one of the following:

• a printed or electronic version of the eAD
• any other commercial document (printed or electronic) on which the unique ARC is clearly stated
• a fallback accompanying document if EMCS is not available to submit an eAD, this can either be a printed or an electronic format

Read paragraph 2.1 if you use an electronic format for any of the accompanying documents.

13.4.1 Additional Information for accompanying documents for movements between Northern Ireland and an EU member state

In the case of movements between Northern Ireland approved persons or premises and an EU member state for the purposes of this section these movements will not be treated as an export.

13.5 Local clearance procedures and customs supervised export

Under simplified procedures, warehousekeepers may be approved to present alcoholic liquors and tobacco products for export at their excise warehouse.

This requires a customs approval under either:

• local clearance procedures — where the approval has been issued prior to 1 May 2016 under the Community Customs Code
• customs supervised export procedures — where the approval has been issued after 1 May 2016 under the Union Customs Code

If one of these approvals is held, alcoholic liquors and tobacco products may be moved from the warehouse in duty suspension for direct export without an eAD.

This is subject to conditions including:

• box 44 of the export declaration being completed to show the movement guarantee reference number under Additional Information (AI) statement GRNTR — if the movement guarantee is provided by the owner of the goods or the transporter, you should consider contacting HMRC’s excise liaison office to check that the details given to you are valid
• at all times, the movement being accompanied by a document prepared by the person who completed the export declaration and this document must contain details of the Unique Consignment Reference (UCR) allocated to the export declaration
• goods not being removed from your premises until all the conditions contained in your local clearance procedures or customs supervised export authorisation have been complied with and a permission to progress message has been received from the CHIEF system
• the goods being re-arrived at the port and receive permission to progress
• maintenance of records of the export declarations to show they have been successfully departed

Exporting under local clearance procedures or customs supervised export through Goods Vehicle Movement Service locations

The introduction of the Goods Vehicle Movement Service and ending of the staged customs controls means departure of the export declaration is a fully automated process at Goods Vehicle Movement Service locations.

As a result of this, you do not need to rely on alternative evidence of export to demonstrate that duty suspended excise goods have left the UK. However, you should still keep appropriate evidence of export should these be needed for inspection by HMRC for audit and assurance purposes.

If you’re exporting excise goods under the local clearance procedures or customs supervised export authorisation through Goods Vehicle Movement Service locations, you do not need to submit a departure message, but must make sure adequate evidence of export is retained as specified in paragraph 13.10.

Read check if you need to declare goods you bring into or take out of the UK for more information.

13.6 Single transport contract — Northern Ireland movements only

If goods are dispatched from a Northern Ireland warehouse through an EU member state (indirect export), and the goods are consigned under a single transport contact, the goods are considered to have left the community once they have been entered under a single transport contact. In practice this is when the goods depart the Northern Ireland port or airport.

Additional Information (AI) statement STC99 must be declared in box 44, and the goods must travel under a through air waybill or through bill of lading from Northern Ireland to a location outside the EU customs territory.

The consignment must still be declared on EMCS, but the movement will be discharged following a valid departure message (CHIEF ICS 60) at the Northern Ireland port and a report of export.

Read check if you need to declare goods you bring into or take out of the UK for more information.

13.6.1 For exports not covered by customs supervised export or local clearance procedures

When the goods have left a UK warehouse premises, there are only limited changes of destination that apply. These are:

• a tax warehouse in the UK
• an alternative place from where the goods will leave the UK

Only in the case of goods that have left a warehouse premises in Northern Ireland, can the following changes of destination apply:

• a tax warehouse in the UK or an EU member state
• a registered consignee in an EU member state
• a temporary registered consignee in an EU member state
• an alternative place from where the goods will leave the UK and EU
• a place of direct delivery in an EU member state

The warehousekeeper must access EMCS and amend the appropriate destination fields on the eAD, which includes selecting a new consignee for delivery. This can be the warehousekeeper themselves if the goods are to be returned to the original dispatching warehouse, in which case a report of receipt must still be submitted.

There will also be a requirement to cancel the export declaration.

It is in your interests to advise the transporter to make a note on the printed copy of the eAD or the commercial document containing the ARC, of the:

• date and time you advised them of the change of destination
• new place of delivery and new consignee details, if appropriate

If the export declaration has been departed, the export is deemed to have been completed, and the goods must be re-imported. A registered consignor will need to start the EMCS movement from the port to the warehouse, and the goods are subject to import procedures.

If EMCS is not available to complete and submit the change of destination message, use fallback procedures (read paragraph 3.3).

13.7 Exports and changes of destination

13.7.1 Direct exports under customs supervised export or local clearance procedures

For these movements, a change of destination is not allowed.

If the direct export is cancelled before the goods are presented to customs by arriving at the port, the goods must be returned to the warehouse of dispatch under the cover of the original movement documents.

If the direct export is cancelled after an arrival message but before the departure message, the goods may be withdrawn from export using the procedure detailed in the Export Best Practice Guide. They may only be returned to the original dispatching warehouse.

If the customs supervised export movement has been completed by the goods being subject to an ‘arrival’ and ‘departure’ message being input to CHIEF, the goods cannot be returned to the warehouse of dispatch under the customs supervised export procedures.

In these cases, the export movement is deemed to have been completed and the goods should be re-imported into the UK.

A registered consignor will need to start the EMCS movement from the port to the warehouse, and the goods will be subject to customs import procedures.

13.7.2 Exports not covered by customs supervised export or local clearance procedures

When the goods have left a UK warehouse premises, there are only limited changes of destination that apply. These are:

• a tax warehouse in the UK
• an alternative place from where the goods will leave the UK
  Only in the case of goods that have left a warehouse premises in Northern Ireland, can the following changes of destination apply:
• a tax warehouse in the UK or an EU member state
• a registered consignee in an EU member state
• a temporary registered consignee in an EU member state
• an alternative place from where the goods will leave the UK and EU member state
• a place of direct delivery in an EU member state

The warehousekeeper must access EMCS and amend the appropriate destination fields on the eAD, which includes selecting a new consignee for delivery. This can be the warehousekeeper themselves if the goods are to be returned to the original dispatching warehouse, in which case a report of receipt must still be submitted.

There will also be a requirement to cancel the export declaration.

It is in your interests to advise the transporter to make a note on the printed copy of the eAD or the commercial document containing the ARC, of the:

• date and time you advised them of the change of destination
• new place of delivery and new consignee details, if appropriate

If the export declaration has been departed, the export is deemed to have been completed, and the goods must be re-imported. A registered consignor will need to start the EMCS movement from the port to the warehouse, and the goods are subject to import procedures.

13.8 Preparing excise goods for transport

HMRC does not insist that you seal containers or trailers used for transporting cased goods. But you may want to use seals for security reasons. If you do, you should show details of the seals on the document accompanying the goods.

You’re responsible for making sure that the transport you use meets all your business needs and that the transporter can, and will, comply with our requirements. You may be responsible for the duty on any missing goods.

For bulk movements or casks moved by open (unsealed) transport you must:

• dip each cask (measure and record each bung and wet dip)
• test spirits for strength
• hard bung each cask
• make sure that you separately identify all casks on the accompanying documents with details of respective dips and strengths

Excise goods can move under groupage contracts only if:

• you do not store excise goods in unapproved premises during the movement
• the movement takes place under a single contract for the goods
• you cannot regroup full container loads
• you group duty-suspended and duty-paid goods, you must make sure that you load the duty-paid goods before the duty-suspended goods
• you do not interfere with the goods
• you produce the container for examination at shipment
• you record full details of pre- and post-groupage transport on the accompanying paperwork
• tell HMRC of any losses identified at groupage

13.9 Reports of export

Except for direct exports under local clearance or customs supervised export procedures, only when the warehousekeeper of dispatch receives a report of export (IE 818) from HMRC is the movement considered to have ended and the guarantor’s liability discharged.

When reports of export are not received by the warehousekeeper after a reasonable amount of time, they must inform the person responsible for the goods or providing the guarantee. Businesses must then identify why the movement has not closed and take the correct action.

When any movement remains undischarged after a period of 2 months from the date of removal from the warehouse, details of the movement must be included on the monthly W1 return.

When movements remain open after a period of 4 months, a duty point will be created and an excise duty assessment issued to the guarantee provider. HMRC may also consider penalty action and review any relevant approvals.

The warehousekeeper has an important role to make sure export movements are finalised as they have access to the EMCS system and messages. It is important that this information is passed on to other people in the supply chain to make sure they take appropriate action. If a warehousekeeper regularly has movements remaining open, HMRC may review their approval if they cannot demonstrate they are being proactive in addressing them.

13.10 Alternative evidence of export

When a report of export is not issued by HMRC the movement on EMCS will remain undischarged and the guarantor liable. In this instance you must contact the HMRC EMCS helpline with the:

• EPU entry number and date, and or the movement reference number
• ARC number and the status of the ICS code if known

If HMRC identifies errors in the export declaration, either due to the warehousekeeper not advising the ARC number to the person responsible for completing the export declaration, or by errors in the completion of the export declaration itself, we will advise the EMCS warehousekeeper of the error. This should be communicated to the person responsible for completing the export declaration to make sure compliance in the future.

In exceptional circumstances HMRC may accept alternative evidence of export to show that the goods have been exported and finalise the movement through EMCS.

The exporter is responsible for providing detailed evidence that clearly relates to the consignment in question and satisfies HMRC that the goods have left the territory of the UK.

When presenting other evidence of export, it must be accompanied by the following documents:

• the export declaration to show that the goods were presented and cleared for export
• either the invoice or packing list that clearly identifies the goods being exported
• transport document (Bill of lading, Airway Bill, CMR) to show us how the goods were transported

The alternative evidence we’ll consider is based on customs requirements detailed in Article 335(4) of Commission Implementing Regulation (EU) 2015/2447.

You must make sure the evidence provides sufficient information to allow HMRC to match it to the export declaration and demonstrate the goods have left the UK and EU. Examples of the documents we may consider are a:

• bill of lading, airway bill or other document certified by the carrier that the goods were loaded and shipped to a destination outside the UK
• commercial document such as a delivery note, or invoice signed by the consignee in a third country certifying the goods have been received
• document authenticated by a customs authority certifying that the goods have left the territory of the UK

The most common form of evidence of export is a commercial document such as a delivery note signed by the consignee located outside the UK or EU.

But when presenting any evidence you must satisfy us that:

• the goods must have been declared against an export declaration that has received permission to progress
• the information must match consistently between the declaration, EMCS and the commercial documents
• the document must clearly identify the specific consignment in question, not similar or identical goods
• the document must clearly show the goods have left the territory of the UK — evidence that the goods have simply been dispatched from premises in the UK is not sufficient
• where transit documents are provided as evidence of export, it must show delivery to a country outside the UK
• the document must be signed and dated by an identifiable individual and make it clear who they are representing — any signature must be accompanied by the person’s name, the company and position within that company they are representing

HMRC reserves the right to request more information or documents we consider necessary to be satisfied that the goods have been exported.

To make sure the duty-suspended regime remains secure, HMRC will reject any evidence that does not meet the conditions set out in the bulleted list.

It is recommended that businesses should have arrangements in place with their customers to provide alternative evidence before goods are dispatched. This will make sure it can be provided quickly and to a sufficient standard.

If movements remain open after 4 months, excise duty assessments will be raised and penalty action may be taken where appropriate. HMRC may also review or revoke approvals if we have concerns about businesses who regularly fail to finalise exports correctly.

13.10.1 Exports from Great Britain to the EU that travel through Northern Ireland

Movements of goods from Great Britain to Northern Ireland do not need an export declaration. Where duty suspended goods are moving from Great Britain to the EU through Northern Ireland 2 separate eADs will be needed to cover the movement — one for the movement in Great Britain and another upon entry into Northern Ireland, to cover the journey from the Northern Ireland port to the final EU destination.

As there is not a requirement to submit an export declaration when leaving Great Britain, there will be no declaration to match against the first eAD to automatically close it.

This means the first eAD will be left undischarged on EMCS and you will need to email alternative evidence to the HMRC EMCS helpdesk for the movement to be closed.

To allow HMRC to close the eAD covering the movement in Great Britain you will need to show to the EMCS helpdesk that the goods have left Great Britain.

In most cases a full copy of the second eAD submitted on EMCS for the onward duty suspended movement from the Northern Ireland port to the EU destination (for example, to an excise warehouse in Ireland) will be enough for these purposes.

It would be useful, where possible, for you to make sure that the ARC for the first eAD is quoted in the invoice number field on the second eAD. Although this is not a legal requirement, it will help to make clear the connection between the 2 eADs and reduce the need for any more evidence.

When the second eAD cannot easily be matched to the first (for example, there are differences in the quantity of goods covered) you will need to provide more evidence to show that the goods have left Great Britain.

In these cases, the alternative evidence of export requirements in paragraph13.10 will apply with the following changes:

• you should ignore any requirements specifically related to an export declaration
• where the carrier or transporter has changed for the onward journey from the Northern Ireland port to the EU destination, transport documentation will be needed for both the Great Britain and Northern Ireland journeys

13.11 Irregularities during direct and indirect export movements

Any irregularities discovered during the movement will be detailed on the report of export provided by EMCS. HMRC will charge duty on deficiencies:

• found during the journey
• where any goods removed from the warehouse are not exported from the territory of the UK
• where deficiency causes an excise duty point to be triggered

HMRC may remit the excise duty providing you:

• can prove that the loss is accidental or due to natural causes
• follow all the conditions and procedures set out in this notice
• have followed other written directions from us

14. Entitled miscellaneous removals

14.1 General information

Unless your approval specifically contains conditions to the contrary, excise goods may be removed without payment of duty for:

• supplies to diplomats and visiting forces within the UK
• removal of goods as stores
• removals to duty-free spirit users
• delivery of spirit-based essences
• sampling in warehouse
• denaturing
• destruction
• Northern Ireland only — supplies to entitled organisations in an EU member state

Motor and heating fuel warehouse operators should read Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179).

14.2 Supplies to diplomats and visiting forces within the UK

When supplying excise goods to diplomats and visiting forces within the UK, you may only remove the goods from your warehouse free of duty and VAT if you show a completed form C426 (for diplomatic privilege) or form C185 (for visiting forces relief).

The C426 should be signed by the Head of Mission and authorised by the Foreign and Commonwealth Office before it is presented to you. The C185 should be signed by an authorised staff member of the visiting forces. There is no requirement for the C185 to be authorised by the Foreign and Commonwealth Office.

The goods must be consigned and delivered to the entitled mission premises or visiting forces base address as shown on the C426 or C185 and must not be used for commercial purposes.

You should keep copy 1 of the C426 and a photocopy of the C185 for your records and make sure that the accompanying commercial document is completed in accordance with the directions given in this notice, or the movement may be considered to be an irregular departure from the warehouse and excise duty and VAT will be due.

14.2.1 Financial security

Removals from warehouse to mission or visiting forces premises within the UK are duty-free (not duty-suspended) and therefore do not take place under EMCS. But there is still a requirement for a financial security to be in place before the goods leave the warehouse and to remain in place until the goods have been delivered to the entitled mission premises or visiting forces base address as shown on the C426 or C185.

The guarantee may be given by the warehousekeeper of dispatch, transporter or owner of the goods and must cover the amount of duty relieved.

The standard duty-suspended movement guarantee cannot be used unless it has been amended to cover duty-free goods removed from your premises. The guarantee holder should contact HMRC’s Financial Securities Centre to amend this guarantee if required.

14.2.2 Accompanying documents

As these movements are not considered to be in duty suspension and do not take place under EMCS, you’re required to use a 3-part commercial removal advice note which you must cross-refer to the authorisation (C426 or C185).

Copy 1 is for your records, copy 2 is for the Head of Mission or authorised Officer on the visiting forces base and copy 3 is the certificate of receipt for completion and return to you.

On the removal document you must include the:

• name and code number of dispatching warehouse and signature of consignor
• warehousekeeper’s document serial number and date of removal
• consignee’s name and the official address of the Diplomatic Mission or visiting forces base (this is the only allowed place of delivery), the official Foreign and Commonwealth Office reference number (C426 only) and if the goods are being removed under diplomatic privilege or to visiting forces relief
• details of the financial security covering the movement
• description of goods and Commodity Code number
• stock number and rotation or other identifying marks and numbers

You must also include the quantity of alcohol in litres of product at 20 degrees centigrade to 2 decimal places.

For motor and heating fuels you must also include the:

• address of the premises from which the oil is removed
• quantity of oil
• identifying particulars of the vehicle or other means of transport
• statement ’This oil has not borne excise duty’

You must enter the details of all goods on the commercial removal document, and in the appropriate ‘Dip Priv’ box on the excise warehouse stock return (form W1).

You should encourage the Head of the Diplomatic Mission or the designated officer for the visiting force to return the receipted copy 3.

You should contact the HMRC excise helpline if the Head of Diplomatic Mission refuses to return the receipted copy. You must make sure the return of all receipted copies for removals to visiting forces.

14.3 Supplies to HM Ships

HMRC allows certain HM Ships (depending on their ‘readiness criteria’) to receive food and drink free from all HMRC duties. HMRC treats these deliveries as exports. The point of exportation is the delivery to the ship (Statutory Instrument 1406/1954).

The ‘readiness status’ of any HM Ship can be obtained from the HMRC excise helpline.

Movements to HM ships are not considered to be in duty suspension and do not move under EMCS procedures.

You may remove goods from warehouse to fulfil orders from HM Ships by completing commercial documents for the removal of goods from the warehouse.

A financial security (read paragraph 14.2.1) must be in place to cover the movement from the warehouse to the ship.

You’ll need 3 copies, headed to show their purpose and destination.

Copy 1 is for your own warehouse records, copy 2 you send to the base port control officer (tobacco products only) and copy 3 is for the authorised naval officer’s signed receipt and return to you as warehousekeeper.

On the removal document you must provide the:

• name and code number of dispatching warehouse and signature of consignor
• warehousekeeper’s document serial number and date of removal
• details of the financial security covering the movement
• name and address of shipper (if not consignor) of goods
• name and category of ship
• dock or place of loading
• description of goods
• stock number and rotation or other identifying marks and numbers
• certificate of receipt, to include:
  • provision for recording shortages upon receipt
  • account debited, for example wardroom, mess or canteen
  • signature and rank of commanding or commissioned officer
• countersignature and rank of supply or commanding officer

You must also express the quantity of alcohol in litres of product at 20 degrees centigrade to 2 decimal places.

14.4 Removal of goods as stores

Removals from warehouse for shipment as stores on board ships or trains within the UK are not considered to be in duty suspension but supplied under relief and do not move under EMCS procedures.

The ship’s master or train manager must get advanced authorisation from HMRC to load new stores onto the vessel or train.

This authorisation is granted on one of the following:

You should ask to see a copy of this form and keep a photocopy for your records.

You may remove goods duty-free from a warehouse to be stores on a vessel or railway vehicle undertaking an entitled journey. You will find the definition of an entitled journey in Excise Notice 69a: aircraft, ship and train stores.

You must complete a commercial document for removal of goods from the warehouse. A financial security (read paragraph 14.2.1) must be in place to cover the movement from the warehouse to the ship.

On the document you must include the:

• shipper’s own reference or order number
• name, address and code number of the warehouse
• shipping marks and numbers
• number and description of packages including the number of bottles per case
• stock number and description of the goods
• quantity of each item and total quantity removed (in litres or litres of alcohol, to 2 decimal places, for alcohol goods)
• commodity code number
• customs status and duty category of the goods
• date of removal from warehouse
• details of the financial security covering the movement
• name and destination of the vessel or train
• name and address of the agent at port or station of shipment

You’ll need 4 copies headed to show their purpose and destination:

• copy 1 is for delivery to customs at the port (if required) where the vessel is before you place any goods on board
• copy 2 is for the master’s or manager’s signed receipt
• copy 3 is for the ship or train to keep for customs purposes
• copy 4 is for your warehouse records

For information on removal of goods as aircraft stores, read Notice 197B Excise goods: Aircraft store floors.

14.5 Removals to duty-free spirit users

Movements to duty-free spirits (read paragraph 14.2.1) users are not considered to be in duty suspension as they are relieved from duty and do not move under EMCS procedures.

If duty free spirits move from an excise warehouse to a DFS user, the spirit must still be covered by a movement guarantee. The guarantee used must cover duty free movements not just one that covers duty suspension only. The level of guarantee needed is identical to the levels for duty suspension movements.

For more information on these levels, read paragraph 10.2.

Before allowing any removals, you must get a copy of the relevant duty-free user’s statement. You’ll find more information about this in Notice 47 duty free spirits: use in manufacture or for medical or scientific purposes.

You must:

• keep a photocopy of each denaturer’s licence, or the relevant duty-free user’s statement
• insert details of all removals on the appropriate schedule for the type of goods and stock accounting period
• take the account correctly and write the goods out of the stock account
• monitor the return of certificates of receipt and retain them in your records
• send timely reminders for outstanding certificates of receipt and notify HMRC promptly if difficulties arise
• put the following information on the delivery document:
  • name and code number of the dispatching warehouse
  • warehousekeeper’s document serial number and date
  • name and address of consignee and if removed for denaturing, manufacture, medical or scientific research or teaching
  • description of spirits
  • stock number and rotation or other identifying marks and numbers
  • details of the financial security covering the movement
  • numbers and description of packages including the number of bottles per case
  • the quantity of each item and total quantity removed in litres or litres of alcohol, to 2 decimal places, for alcohol goods
  • strength and obscuration, if any
  • description of transporting vehicle or vehicles
  • identifying numbers and types of seals
  • name, address and VAT registration number of the proprietor and, in the case of UK-produced goods, whether there has been a supply in warehouse
  • provision for certificates of receipt

Details must also include information about the customs status of the goods.

You must refuse delivery if you do not have a photocopy of the duty free spirit user’s approval or the order does not contain the statement referred to in Notice 47 duty free spirits: use in manufacture or for medical or scientific purposes.

14.6 Delivery of spirit-based essences

Spirit-based flavourings and essences classified under CN code 3302, such as flavourings and essences for soft drinks, are exempt from excise duty.

You’ll find more information about this in Excise Notice 41: alcoholic ingredients relief.

14.7 Sampling in warehouse

Duty-free samples may be taken if you intend to use them for analysis or scientific research purposes.

Motor and heating fuel warehouse operators should refer to Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179).

You must take duty-paid trade samples if you intend to use them for commercial or promotional purposes. You must remove them from warehouse as a normal delivery to home use. You must account for duty and VAT including Customs Duty, if appropriate.

You should keep a full audit trail showing the collection, storage, use and disposal of all duty-free samples. When you send samples on which excise duty has not been paid to recipients in other countries, you must normally use EMCS procedures for the movement from the warehouse to the point of exit from the UK.

The warehousekeeper, or the owner, may examine goods in warehouse. You may draw small quantities from cask or VAT for ‘nosing’, so long as you return the samples to their original containers without delay.

The warehousekeeper or the owner may draw and remove samples from warehouse at any time without paying duty for:

• quality control checks, including scientific and organoleptic analysis (this does not cover ‘wine-tasting’ where the wine is actually consumed)
• reference purposes
• scientific research or testing

These are not for consumption. You must pay duty on any samples which are used for tasting purposes, if the sample is actually consumed.

You must record all removals for sampling purposes in your stock account.

Warehousekeeper and owner records must include:

• an identification of each sample
• the size and strength of the sample
• the date and reason for drawing
• the place where you hold the used sample for reference

You must label duty-free samples. The label must have details which we can cross-check to your records. The size of each sample must be the smallest needed for the particular use. We cannot, for example, accept lack of containers of a suitable size as a reason for drawing samples which are larger than necessary.

Environmental health officers or any other recognised official body may take samples. The recognised official must give you assurance that they will ultimately destroy the goods.

Owners, or persons they authorise must submit to HMRC through the warehousekeeper a signed declaration and assurance as follows:

‘I declare that any samples taken of goods for which I am the owner will be no more than required for the approved purpose. I undertake that so long as duty has not been paid or accounted for on the samples they will not be used for any other purpose or sold. I further undertake that any unused sample or part of a sample taken will be returned to the warehouse or destroyed or I will pay the duty thereon.’

If you take duty-free samples for eligible purposes and use them at your own premises, there is no VAT liability. You must analyse the goods to destruction or dispose of them using an acceptable method. Samples removed for eligible purposes and supplied to customers free of charge have no VAT liability.

HMRC normally allow only one sample of a suitable size for a particular use. But, if you have a real and justifiable need for 2 or more identical samples, for example, for use at 2 or more places, you should make a separate note of the facts in your records. You must take any other samples on a duty-paid basis.

You may return to stock or destroy any samples or remnants which have not left the warehouse. If you remove samples from warehouse, you must make sure that you either return the samples to the warehouse or destroy them. If you’re destroying samples held at a remote site, for example a laboratory, you must contact the HMRC excise helpline giving notice.

You must pay duty on samples which you have not disposed of properly.

14.8 Denaturing

Warehoused alcohol and tobacco may be denatured in warehouse without having to pay the duty, providing that the potential duty exceeds the value of the goods and you follow the correct procedures.

If someone else carries out the denaturing on your behalf, you remain responsible for making sure that you comply with all HMRC procedures.

You may not denature spirits or goods which are liable to Customs Duty if the duty has not been paid.

HMRC may grant permission if the goods are:

• damaged
• surplus after operations
• refuse
• in a non-marketable condition

For tobacco goods advise the HMRC excise helpline of your proposals and get agreement before carrying out the denaturing. In particular, you’ll have to make sure that any fiscal mark is obliterated or destroyed.

You should be aware that any notice to HMRC about a denaturing, or our agreement to a proposed method of denaturing, does not lessen your responsibilities under anti-pollution laws.

You must give us at least 2-days’ notice (excluding Saturdays, Sundays and bank holidays) if you want to denature the goods in your approved premises or 5-days’ notice (excluding Saturdays, Sundays and bank holidays) if you want to denature the goods at premises other than your approved premises.

You must tell us:

• why you want to denature the goods
• the description and quantity of the goods
• the potential amount of duty involved
• the date, time and place of the proposed denaturing
• the method of denaturing
• the purpose to which you’ll put the denatured product

If we decide that your proposed method of denaturing is not satisfactory, we’ll tell you in writing. If you decide to continue with the denaturing by another method which is acceptable to us, you must give a further 2-days’ notice if you want to denature goods in your approved premises or 5-days’ notice if you want to denature the goods outside your approved premises.

Duty-paid goods can be denatured, but, if you want to claim drawback, you must follow the guidance in Excise duty drawback (Excise Notice 207).

14.9 Destructions

Provided that you follow the correct procedures, warehoused alcohol and tobacco goods may be destroyed without having to pay the duty.

Motor and heating fuel warehouse operators should read Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179).

If someone else carries out the destruction on your behalf, you remain responsible for making sure that all our procedures are complied with.

We may grant permission if the:

• goods are damaged
• goods are surplus after operations
• goods are refuse
• goods are in a non-marketable condition
• potential duty exceeds the value of the goods

You must give HMRC at least:

• a 2-day notice (excluding Saturdays, Sundays and bank holidays) if you want to destroy goods in your approved premises
• a 5-day notice (excluding Saturdays, Sundays and bank holidays) if you want to destroy the goods outside your approved premises

Notifications should be sent by email to: niualcohol@hmrc.gov.uk.

You should be aware that any notice to HMRC about destruction does not lessen your responsibilities under anti-pollution laws.

You must tell us:

• why you want to destroy the goods
• the description and quantity of the goods
• the potential amount of duty involved
• the date, time and place of the proposed destruction
• the method of destruction

If HMRC decides that the proposed method of destruction is not satisfactory we’ll tell you in writing. If you decide to continue with the destruction by another method which is acceptable to HMRC, you must give us a further:

• 2-day notice if you want to destroy goods in your approved premises
• 5-day notice if you want to destroy the goods outside your approved premises

As all local authority approved destruction sites will not be authorised to receive duty-suspended goods, HMRC’s policy for off-warehouse destructions is to treat the destruction site as a temporary extension to the warehouse approved area. This has the effect of the destruction being deemed to take place in warehouse, therefore neither EMCS nor a movement guarantee are required.

We require you as the warehousekeeper, through your commercial and local authority site records, to provide evidence that the goods have been destroyed in accordance with the notice given. Any discrepancies will be treated as a loss in warehouse.

14.10 Supplies to entitled organisations in EU member states

Northern Ireland warehousekeepers and registered consignors are able to supply goods in duty suspension to entitled international organisations, embassies and forces in another EU member state.

A trader who supplies goods to entitled organisations must:

• get an order together with a fully completed exemption certificate (in duplicate) (in accordance with article 5 of Regulation EC 31/96)
• keep the original exemption certificate for your warehouse records complete an eAD within EMCS under the normal procedures for an intra-EU movement of duty-suspended excise goods
• make sure the movement is covered by a valid guarantee
• attach a copy of the exemption certificate to the printed version of the eAD or the commercial document clearly stating the ARC
• make sure a report of receipt is received from the EU member state of destination

Each EU member state decides whether or not individuals within organisations may order goods, as well as the organisations themselves. If you have any doubt about the authenticity of the organisation, the eligibility of the individual or the exemption certificate, you should contact the HMRC excise helpline.

15. Transitional movements and 18 month auto-closures

Transitional movements are goods that were dispatched under duty suspension between an EU member state and the UK before the end of the transitional period, but were received after this point. This includes movements between Northern Ireland and the EU where a Great Britain excise ID (rather than an XI one) was used.

15.1 Receipt of transitional movements under duty suspension arrangements

For transitional movements that were received from the EU where the report of receipt is still outstanding you can still submit your reports of receipt on EMCS in the normal way. This will close the movement on UK EMCS.

As we no longer exchange EMCS messages with the EU for these transitional movements, your report of receipt will not be shared with the authorities in the dispatching EU member state. This means that your supplier or EU consignor may also ask you for a copy of the report of receipt or alternative evidence to confirm that the goods have been received.

In all cases, the UK excise duty should be accounted for by following the normal excise warehousing requirements.

15.2 Closure of EMCS movements that remain open after 18 months

EMCS movements which have been dispatched in the UK and which remain undischarged for 18 months will be closed when they reach 18 months old. An IE881 manual closure notification message will be sent to the consignor. The consignee will also get a closure notification if the movement is internal within Great Britain, or from Northern Ireland to the EU.

The process for the automatic closure of open movements that are older than 18 months does not affect the legal requirements within regulation 81 of The Excise Goods (Holding, Movement and Duty Point) Regulations 2010 which specify that a deemed irregularity has occurred should goods have not been evidenced as having arrived at their intended destination within 4 months following the start of the movement.

Where an automatic closure has occurred, you must still hold suitable alternative evidence that the goods arrived at their destination or that any liability was properly discharged. Where this information is not held, HMRC may issue an excise duty assessment.

16. Calculating excise duty

16.1 How to calculate the excise duty due on alcohol and alcoholic beverages removed from an excise warehouse

Unless HMRC has permitted the use of an alternative method that does not disadvantage the revenue, you must work out each constituent stage of the calculation process to a minimum of 4 decimal places.

To complete the remittance advice W5 or W5D, truncate the quantity of alcohol established at the end of the calculation process to 2 decimal places.

You should calculate the amount of duty due to 2 decimal places.

To work out the amount of duty due you can use either the:

Calculation examples for alcohol duties (PDF, 157 KB, 2 pages)

16.2 How to calculate the excise duty due on home use removals under scheduling arrangements

When you account for several removals of goods of the same tax type on a twice monthly schedule, you should calculate the quantity of alcohol on each to 4 decimal places, total the individual volumes and truncate the sum to 2 decimal places before applying the duty rate.

For example, if you were to remove the following quantities of vodka (based on this calculation 6 × 70 cl × 37.5% abv = 1.575 litres of alcohol per case) to home use, you would pay duty on 3,476.02 litres of alcohol:

Date of removal	Number of cases	Total volume
1 June	71	111.825
2 June	159	250.425
4 June	1,200	1,890.00
9 June	522	822.15
11 June	70	110.25
12 June	185	291.375

Total volume = 3,476.025 litres of alcohol, truncated to 3,476.02.

17. Northern Ireland arrangements

The following section explains specific arrangements for the holding and movement of excise goods into Northern Ireland from Great Britain and between Northern Ireland and other EU member states.

These arrangements are in place as a result of the Northern Ireland Protocol to the Withdrawal Agreement under which Northern Ireland maintains alignment with certain EU excise processes and rules.

17.1 Northern Ireland authorisations

The following authorisations are available only to Northern Ireland traders:

• registered consignees
• temporary registered consignees
• tax representatives

For more information on excise approvals and authorisations read Registration and approval of excise goods held in duty suspension (Excise Notice 196).

17.2 Duty-suspended movements between Northern Ireland and EU member states

Excise goods can continue to move between Northern Ireland and other EU member states (including through Great Britain) in duty suspension using EMCS with an ‘XI’ excise identifier.

Northern Ireland authorised persons are able to create the following movement types:

• to a tax warehouse in the UK or an EU member state (DTC1)
• a registered consignee based in Northern Ireland or an EU member state (DTC2)
• a temporary registered consignee based in Northern Ireland or an EU member state (DTC3)
• a place of direct delivery in an EU member state (DTC4)
• an exempt consignee as defined by the Horizontal Excise Directive (DTC5)
• a place of export from the UK or an EU member state (DTC6)
• an unknown destination (for movements of energy products by sea or inland waterways where the consignee is definitely not known at the time of dispatch) (DTC7)

17.3 Duty-suspended movements between Great Britain and Northern Ireland

Excise goods can continue to move between Great Britain and Northern Ireland in duty suspension under the cover of a single EMCS entry (DTC1).

This single EMCS entry will cover two separate duty-suspended movements. The first movement takes place in Great Britain and the second covers the leg of the journey that takes place in Northern Ireland.

The single EMCS entry should record the origin of the movement as the place from which the goods were first dispatched to commence the first leg, and the destination of the journey as the place that the goods are ultimately received to end the second leg.

17.4 Distance selling and tax representatives

Distance selling takes place from duty-paid stock and involves the sale of excise goods in Northern Ireland to a private individual in an EU member state, or from one EU member state to a private individual in a different EU member state or Northern Ireland.

As the vendor you’re responsible, directly or indirectly, for delivery of the goods.

Distance selling includes:

• internet and telephone sales
• sales by mail order
• transport by couriers or parcel companies

As the vendor, you’re liable to pay the excise duty of the EU member state of destination at the time of delivery. This duty must be guaranteed to the satisfaction of the fiscal authority of destination before you dispatch the goods.

You may be required by the EU member state of destination to appoint a tax representative in the EU member state of destination, to provide the guarantee and pay the duty on your behalf.

In the context of distance selling, the tax representative:

• acts on behalf of the vendor located in an EU member state
• assumes the legal responsibility to account for and pay the full amount of excise duty and VAT due on goods sent by the vendor

Tax representatives must be authorised by the vendor and approved by the fiscal authority of the EU member state of destination.

There is no requirement for any official documents to accompany goods moving under distance selling arrangements. But, it is advisable that commercial documents accompany the consignment showing details of the tax representative in the EU member state of destination who is to account for the duty.

If you want to find out about distance sales and the requirements for tax representatives in EU member states, you should contact the relevant fiscal authority. The relevant embassy or consulate in the UK may be able to provide more details. You may find it helpful to quote Council Directive 2008/118/EC article 36.

17.5 The excise duty off-set mechanism

This paragraph contains requirements that have force of law and is made under regulations 93 and 94 of the Excise Duties (Northern Ireland Miscellaneous Modifications and Amendments) (EU Exit) Regulations 2020

An excise duty charge arises when goods enter Northern Ireland from Great Britain, even where those goods are already UK excise duty-paid in Great Britain.

To avoid paying duty twice in the UK and the administrative burden of reimbursement claims, the duty off-set mechanism will credit the amount of excise duty already paid on the goods in Great Britain against the liability that arises on entry to Northern Ireland when there is a duty point in Northern Ireland.

To account for the excise duty off-set mechanism you must calculate the amount of excise duty due when the goods arrive in Northern Ireland. You must do this before you submit your import declaration.

You can find more information about how to calculate excise duty in section 16.

If you are a revenue trader, in addition to all other record keeping requirements set out in Excise Notice 206 you must record and maintain in your trader records every excise duty off-set calculation that you make for excise duty-paid goods you move from Great Britain to Northern Ireland. You must also keep any documents supporting those calculations.

Once you have calculated the amount of excise duty due in Northern Ireland, subtract the amount of excise duty already paid on the goods in Great Britain. The result of that calculation is the amount of excise duty you will need to pay when the goods enter Northern Ireland.

In most cases we expect there will no additional amount to pay.

17.5.1 Where you calculate there is no additional excise duty to pay in Northern Ireland

Where there is no additional amount to pay you should submit your import declaration in the normal manner, and, if you are a revenue trader, record the offset calculation in your revenue trader records.

17.5.2 Where you calculate there is an additional amount of excise duty to pay in Northern Ireland

In the event that there is an additional amount of excise duty to pay (for example due to a routine budget rate change) when submitting your import declaration in the Customs Declaration Service you must use the override code ‘OVR01’ in box DE2/2 of the declaration and enter the amount of duty that you are liable to pay, this amount will be the difference only between what you have paid in GB and what you calculate you owe in Northern Ireland. If you are a revenue trader, you must also record the offset calculation in addition to recording the additional duty payment you have made in your records.

17.5.3 Where you calculate the duty-paid in Great Britain is more than the amount of duty chargeable in Northern Ireland

Where the amount of duty already paid in Great Britain exceeds the amount of duty charged on entry to Northern Ireland, you should submit your import declaration in the normal manner and, if you are a revenue trader, record the offset calculation in your revenue trader records. There is no ability to claim a refund of the difference calculated. This is a revenue protection measure.

17.6 Evidence of payment of UK excise duty for goods moving from Northern Ireland to Great Britain that merely pass through Ireland

This paragraph contains requirements that have force of law and is made under regulation 7A(2) of the Excise Goods (Holding, Movement and Duty Point) Regulations 2010

Where UK excise duty-paid goods move from Northern Ireland and merely pass through Ireland before arriving in Great Britain, there will be no excise duty point when the goods arrive in Great Britain provided that you are able to provide, upon request documentary evidence to HMRC’s satisfaction that UK excise duty has been paid.

Before you move goods you must ascertain what evidence you will be able to obtain to show that UK excise duty has been paid in Northern Ireland.

You should not make a claim for drawback of UK excise duty on duty-paid goods you move from Northern Ireland to Great Britain that merely pass through Ireland.

You should consider the risk of the duty point not being relieved when the goods arrive in Great Britain if you do not hold satisfactory evidence to support that duty has been paid.

We will accept the original duty payment document as evidence of payment. This can either be the original document or a copy of it. By original duty payment document we mean:

• validated copy 2 or electronic confirmation of W5, W6, W50, W5D, W6D or HO10
• HM2, HM4, TRC2
• EX46, EX606
• TP7
• HO73, HO74, HO75
• HO930, C and E930A, HO101
• duty deferment statement

In addition, we will also consider documentary commercial evidence. Any commercial evidence must clearly identify the:

• supplier
• consignor (where different from the supplier)
• customer
• goods which are UK duty-paid, vague descriptions of goods and quantities are not acceptable
• date of removal
• export destination;
• mode of transport and route taken for example, by road from Belfast to Dublin, followed by sea from Dublin port to Holyhead

Photocopy certificates of shipment are not normally acceptable evidence nor are photocopy bills of lading, sea waybills or air waybills (unless authenticated by the shipper or airline company).

Depending on the way the goods are removed from Northern Ireland, we recommend that you obtain the following types of evidence to demonstrate that the goods have left Northern Ireland as duty-paid goods and that they have merely passed through Ireland (this list is not exhaustive):

If the goods are	then the commercial evidence you should include with your claim is..
removed from Northern Ireland and merely pass through Ireland by road by an independent carrier	– a copy of the carrier’s invoice or consignment note, supported by evidence that the goods have been delivered to a place of exit in Ireland (for example, a receipted copy of the consignment note). – the International Consignment Note (CMR). Where your customer arranges for the goods to be collected ex-works the CMR alone is not conclusive evidence that the goods in question have left the UK but, where the CMR is used as part of the evidence, it is important that the information is complete and all the details legible. – details of the container number or trailer number if applicable, with confirmation (from the packer) that it contained the goods to which the duty point is to be relieved.
removed from Northern Ireland and merely pass through Ireland by rail	Rail contractors offer services by rail for parcels and full loads. In all cases — the exporter’s copy of the consignment note endorsed with a railway stamp is your evidence of export. For parcels — copy 4 of the PIM/PIEX (International Consignment Note). This is the exporter’s copy and receipt for the goods. The receipted form plus the railway statement of account listing each export provides your evidence of export. Bulk cargo services — for full loads in wagons you should provide the ‘Convention International des Marchandises par Chemin de Fer’ (CIM) consignment note as evidence. This contains the ‘Uniform Rules concerning the contract for International Carriage of goods by rail’. Where containers and swap bodies are handled by intermediaries, who use their own consignment documentation, this should be included. Where the goods are being consigned in a container you should hold evidence that the goods on which the UK duty point will be relieved on arrival in Great Britain were loaded in that container, for example, a manifest detailing the container’s content.
removed from Northern Ireland and merely pass through Ireland in your own transport	– a signed copy of the delivery note from your customer or their authorised representative, confirming receipt of the goods — the delivery note should include the name and address of your customer in the Republic of Ireland and the delivery address if different. – where you used a ferry, travel tickets should be used to demonstrate that the vehicle travelled to the Republic of Ireland
collected by your customer or their authorised representative	a written order from your customer in Great Britain, which includes: – their name and address – the name of any authorised representative collecting the goods – the address in the Republic of Ireland where the goods are to be delivered – the vehicle registration number of the transport used – the signature of your customer, or their authorised representative, confirming receipt of the goods
removed from Northern Ireland and merely pass through Ireland to travel as air or sea freight	If you are using commercial transport documents as proof of export for goods moved by: – air — you must obtain and keep an authenticated master or house air waybill endorsed with the flight prefix and number, and the date and place of departure – sea — you must keep one of the copies of the shipped bill of lading or sea waybill (certifying actual shipment) or, where a shipping company does not issue these, a certificate of shipment given by a responsible official of that company
posting the goods or using a carrier for small consignments	Where an on line track and trace service is available, a print out of the tracking and tracing of the goods to their final destination is acceptable where it can be confirmed that it relates the good subject to the claim. Where you complete the postal declaration for the goods, (and/or) a driver collects the goods and provides you with a receipt, this receipt plus the statement of account issued by the courier business listing each export shipment, can be used as evidence.

18. The Law

You’ll find the primary legal provisions applicable to the contents of this notice in the:

• Alcoholic Liquor Duties Act 1979 (ALDA)
• Customs and Excise Management Act 1979 (CEMA)
• Hydrocarbon Oil Duties Act 1979 (HODA)
• Rehabilitation of Offenders Act 1974 (ROA)
• Tobacco Products Duty Act 1979 (TPDA)
• Value Added Tax Act 1994 (VATA)

You’ll find detailed requirements in:

• The Beer Regulations 1993 (SI 1993/1228) (The Beer Regs)
• The Channel Tunnel (Alcoholic Liquor and Tobacco Products) Order 2003 (SI 2003/2758) (CTO)
• The Cider and Perry Regulations 1989 (SI 1989/1355) (C&P)
• The Denatured Alcohol Regulations 2005 (SI 2005/1524)
• The Excise Duties (Deferred Payment) Regulations 1992 (SI 1992/3152) (EDDPR)
• The Excise Duties (Goods Imported for Testing, etc.) Relief Order 1991 (SI 1991/2089) ( Testing Relief Order)
• The Excise Goods (Drawback) Regulations 1995 (SI 1995/1046) (EGDR)
• The Excise Goods (Holding, Movement and Duty Point) Regulations 2010 (SI 2010/593) (HMDP)
• The Excise Warehousing (Energy Products) Regulations 2004 (SI 2004/2064)
• The Excise Warehousing (Etc.) Regulations 1988 (SI 1988/809) (EWER)
• The Revenue Traders (Accounts and Records) Regulations 1992 (SI 1992/3150) (RTR)
• Spirits (Rectifying, Compounding and Drawback) Regulations 1988 (SI 1988/1760) (SRCD)
• The Spirits Regulations 1991 (SI 1991/2564) (The Spirits Regs)
• The Value Added Tax Regulations 1995 (SI 1995/2518) (VATR)
• The Warehousekeepers and Owners of Warehoused Goods Regulations 1999 (SI 1999/1278) (WOWGR)
• The Wine and Made-Wine Regulations 1989 (SI 1989/1356) (W&WM)

You’ll find the conditions which cover movements of excisable goods to and from member states of the EU in Council Directive 2008/118/EC OJ: L9, 14 January 2009 and Commission Regulations 3649/92 OJ L369 17 December 1992 and 684/2009 OJ L197 24 July 2009.

Additional legal provisions applying to Northern Ireland

Excise Duties (Northern Ireland Miscellaneous Modifications and Amendments) (EU Exit) Regulations 2020

You’ll find the conditions which cover movements of excisable goods to and from Northern Ireland and EU member states in Council Directive 2008/118/EC OJ: L9, 14 January 2009 and Commission Regulations 3649/92 OJ L369 17 December 1992 and 684/2009 OJ L197 24 July 2009.

19. The review and appeals process

When we make a decision that you can appeal against, we’ll tell you and offer you a review. We’ll explain the decision and tell you what you need to do if you disagree.

You’ll usually have 3 options. Within 30 days you can:

• send new information or arguments to the officer you have been dealing with
• have your case reviewed by a different officer
• have your case heard by an independent tribunal

A review will be handled by a different officer from the one who made the decision. If you prefer to have an independent tribunal hear your case, you must write directly to the Tribunals Service.

If you want us to review a decision, you must write to the person who issued the decision letter, within 30 days of the date of that letter.

We’ll complete our review within 45 days, unless we agree another time with you.

If you’ve requested a review you cannot ask the tribunal to hear your case until the 45 days (or the time we agreed with you) has expired, or we’ve told you the outcome of the review.

If you’re not satisfied with the review’s conclusion, you’ve 30 days within which to ask the tribunal to hear your case.

If we cannot complete our review within 45 days, or any time we agreed with you, we’ll ask you if you’re willing to agree to an extension so that we can complete the review. If you do not agree to an extension, the review is treated as concluding that the decision being reviewed is upheld.

We’ll write and tell you this, you then have 30 days from the date of that letter to ask the tribunal to hear your case. Your request should set out clearly the full details of your case, the reasons why you disagree with us and provide any supporting documents. You should also state what result you expect from our review.

If you do not want a review you may appeal to the independent tribunal. You need to send your appeal to the Tribunals Service within 30 days of the date on the decision letter.

You can find more information about reviews and appeals in:

In most cases you should be able to find the information you need in this notice. If not contact the HMRC excise helpline.

EMCS queries

If you’re having a problem with EMCS, you should check EMCS service and availability and issues.

You should contact the HMRC EMCS helpline if you have:

• received an event report which is missing an attachment
• are unable to submit a report of receipt in order to close a movement on EMCS
• if you have any other queries

If your question is about the registration or enrolment process for EMCS then you should telephone the HMRC EMCS online services helpline.

Your rights and obligations

Read the HMRC Charter to find out what you can expect from us and what we expect from you.

Help us improve this notice

If you have any feedback about this notice email: customerexperience.indirecttaxes@hmrc.gov.uk.

You’ll need to include the full title of this notice. Do not include any personal or financial information like your VAT or company reference number.

If you need general help with this notice or have another question contact the HMRC excise helpline.

Putting things right

If you’re unhappy with HMRC’s service, contact the person or office you’ve been dealing with and they’ll try to put things right.

If you’re still unhappy, find out how to complain to HMRC.

How HMRC uses your information

Find out how HMRC uses the information we hold about you.