Notice

Excise Notice 197a: excise goods - holding and movement

Updated 28 January 2021

This notice has been amended to reflect changes as a result of the UK leaving the EU. The changes include:

• expanding the definition of ‘entitled passenger’ to include those travelling from Great Britain to EU destinations by sea, air or rail

• providing for the establishment of export shops at calling points for Channel Tunnel railway services in Great Britain, such as Eurostar stations and the Eurotunnel terminal at Folkstone, to allow sales of duty free goods to entitled passengers at these locations

• amending references to the EU and EU legislation so that they only apply in respect of Northern Ireland

It also includes some changes to where further information can be found, as well as reflecting the replacement of Local Clearance Procedure (LCP) with Customs Supervised Exports (CSE). In addition, we no longer send out blank return forms automatically on a monthly basis.

For information on holding and movement requirements before 1 January 2021 read Excise Notice 197a: excise goods - holding and movement

1. Introduction

This notice explains the general conditions, directions and requirements for the holding and movement of excise goods (duty paid and duty suspended) within an export shop in the UK. An export shop is an excise warehouse approved under Section 92 of the Customs and Excise Management Act 1979.

Details are contained in Notice 196 showing how to apply for:

• premises approval

• authorisation as a warehouse keeper

• registration as an owner of duty suspended excise goods in warehouse

The general provisions for receipt and removal of duty suspended goods from an excise warehouse are contained in Notice 197.

This notice contains the additional requirements and obligations for warehousekeepers who are export shop operators. Although an export shop can also hold goods liable to customs duty and VAT, this notice deals solely with excise goods (alcohol and tobacco), and should be read in along with Notice 197.

We will provide a warning where the notice has the force of law, as in this example:

‘The legal basis for excise goods held and supplied from an export shop is “The Excise Goods (Export Shops) Regulations 2000”. Parts of this notice have the force of law under those regulations.

The following requirement has the force of law

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

For example with:

• the amount of an assessment

• the issue of a civil penalty

• a decision specifically connected to the relevant duty

You will 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 will complete our review within 45 days, unless we agree another time with you.

You cannot ask the tribunal to hear your case until the 45 days, or the time we agreed with you, has expired, or we have told you the outcome of the review.

If you are not satisfied with the review’s conclusion, you have 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 will ask you whether you are 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 will 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 documentation. 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.

Find further information about what to do if you disagree with a decision made by HMRC.

2. Other notices you may find useful

Notice	Title
50	Warehouse warning notice
196	Excise Goods: Authorisation of warehousekeepers, approval of premises and registration of owners
197	Excise Goods: Receipt into and removal from an excise warehouse of excise goods
206	Revenue traders’ records
209	Civil Penalties: Fixed, geared and daily
476	Tobacco products duty
727	Retail schemes

3. Definition of export shop

An export shop is an excise warehouse that is approved to receive and store excise duty suspended goods intended for sale to passengers travelling with a relevant transport document. Holders of such a document are known as ‘entitled passengers’. A relevant transport document is one for a voyage, flight or international railway journey to a destination outside the United Kingdom, other than the Isle of Man. It does not include a transport document for a journey from a port, airport or international railway station or terminal in Northern Ireland to a destination within the EU.

The warehouse approval may contain conditions that also allow the premises to receive, hold and sell duty and VAT paid goods to passengers travelling on other journeys, known as ‘non-entitled passengers’. This includes domestic journeys, journeys to the Isle of Man or journeys between Northern Ireland and the EU.

If a shop does not store or sell any duty suspended excise goods (alcohol and tobacco), we will not approve it as an ‘export shop’.

An export shop can only be sited at either a customs and excise designated port or airport or a train station or terminal used by international railway services (such as Eurostar or Eurotunnel) and is usually located in the departure lounge after security controls. Although the export shop’s storage facility is normally sited within the perimeter of the same port, airport, railway station or terminal, it does not need to be joined to the retail shop unit (this is known as the Associated Storage Warehouse). Your approval will cover both the area of the actual export shop and the associated storage warehouse only when these premises are sited within the same port, airport, railway station or terminal. If you wish exceptionally to site the storage facility outside this area, you must request this when seeking approval.

An export shop is approved as a trade facility excise warehouse. Details on how to apply for approval are contained in Notice 196.

There are 3 types of export shop, explained as follows:

If you sell…	then this type of shop…	and…
100% of excise goods duty free to entitled passengers	may receive all stock in duty suspension for sale only to entitled travellers for export outside the UK,	as all sales are duty free, no duty payment returns are required.
50% or more of excise goods duty free to entitled passengers	may receive all stock under duty suspension, and sell that stock to either entitled or non-entitled passengers. If you wish to operate in this way you must apply to join the special payment scheme,	you will need to submit monthly payment returns to account for the duty on any goods sold to non-entitled passengers. See section 10 for more details.
Less than 50% of excise goods duty free to entitled passengers	may only receive excise goods in duty suspension for intended sale to entitled passengers. You can only receive duty paid stock for all remaining sales to non-entitled passengers,	as all sales are either duty paid or duty free at the point of sale, no payment returns are required.

4. Receipt of goods into the export shop

Your premises approval letter will show the type of goods that can be received in duty suspension. Unless you hold a special payment approval, you cannot receive and store excise duty suspended goods intended for sale to non-entitled passengers. You must receive these goods into your export shop excise duty paid.

Notice 197 details the requirements for receiving duty paid and duty suspended goods into your warehouse.

If you store or intend to store tobacco products you must read Notice 476 and Notice 196 and ensure that your warehouse approval includes tobacco products.

For export shops located in Northern Ireland you can only receive UK duty paid tobacco products bearing a fiscal mark for retail sale to passengers travelling to UK or EU destinations. You will find more information about this in Notice 476.

5. Sales of goods from an export shop

5.1 Who can buy my excise goods

Status of goods	Persons eligible
Excise duty suspended goods	entitled passengers or working crew members travelling on qualifying journeys
Excise duty paid goods	all passengers working crew members travelling on all journeys or entitled port, airport or railway staff

Before passengers can purchase goods from your export shop, they must produce a transport document (Excise Goods (Export Shop) Regulations (ESR) r 8(4)).

You must provide your customer with an invoice or till receipt for each sale, which must show the following details:

• voyage, journey or flight number and date

• number of units sold

• total value of goods

• individual transaction number

• stock or product number

You must make sure the till roll forms part of your accounts.

For export shops situated at airports which are not approved to use computerised accounting, we may ask you to provide flight sheets listing the:

• flight number

• date

• invoice number

Flight sheets with sales invoices and till receipts will form part of your auditable records.

If you are approved to use computerised accounting we will not require flight sheets.

For journeys from ports and railway terminals, we may require equivalent documents to a flight sheet.

At the end of each day you must summarise all sales under each agreed stock number. This will form part of your accounts.

Important note: If you sell duty paid goods to entitled passengers, you must make sure your system can separately identify the duty and VAT payment. The passenger’s flight number (or equivalent identifying information for departures from ports and railway stations or terminals) will automatically indicate duty free sales.

5.2 Sales of duty free goods to entitled passengers transiting another airport

Entitled passengers must:

• hold a single valid through ticket for the whole journey (for example: Manchester to New York via London)

• depart the transiting airport within 5 hours of arrival (scheduled time of arrival and departure printed on the ticket)

Ignore boarding cards in these circumstances, since airline and security procedures require separate boarding cards for each leg.

If a passenger holds 2 separate tickets for a non-UK journey (for example: Manchester - London, then London - New York), and you are the first airport of departure, you must not sell duty free goods to that passenger. We consider this type of passenger is making 2 separate journeys, and the first is a domestic one.

Remember - you carry the liability for any duty and tax due on any ineligible duty free sales.

5.3 Sales of goods to general aviation passengers

As general aviation aircraft operate private flights carrying non-fare paying passengers, they will not hold a recognised commercial transport document. Some airport authorities may arrange to issue these passengers with alternative evidence of entitlement, specifically to purchase goods in the export shop. This may take the form of a shopping voucher. When these alternative arrangements apply, you must make sure your staff:

• recognise these vouchers

• know when they are valid

• when passengers are entitled to use them

General aviation passengers have the same entitlement as commercial passengers. They can purchase duty free goods when travelling on a qualifying journey or duty paid goods for all other journeys.

We may ask you to satisfy us that your arrangements make sure these passengers carry any duty free purchases onto the relevant outward flight.

5.4 Sales of duty paid tobacco products bearing fiscal marks to entitled passengers

You will find more information about this in Notice 476 Tobacco products duty.

5.5 Sales of goods to staff working at the port/airport/railway station or terminal

Sales may be made to working staff providing all goods sold to staff are supplied from duty paid stock. You cannot use the export shop’s duty suspended stock even on payment of all duties and tax.

5.6 Sales of excise goods to crew

It is the port, airport, railway station or terminal authorities’ decision on whether these persons are allowed to enter the departure lounge area. However, the following rules apply:

Status of goods	Each crew member must…	Your action
Excise duty suspended goods.	qualify for duty free entitlement by being part of a working crew travelling on a qualifying journey. Unlike entitled passengers they will not hold any normal transport document.	You must be satisfied that the alternative evidence crew members produce to identify their flight, voyage or journey details and date of travel is valid.
Excise duty paid goods.	possess satisfactory evidence of their flight, voyage or journey details and date of travel.	Confirm their evidence is valid.

You should keep a note of these sales in your records, as we may ask you to demonstrate that your procedures are satisfactory.

6. Transport document

The legal basis for specifying the type and description of a transport document is in Regulation 8(4) of the Excise Goods (Export Shops) Regulation 2000. The paragraph below has the force of law under these regulations.

The following requirement has the force of law

A valid transport document is:

• a boarding card

• airline or train ticket

which must include the:

• date of flight/voyage/journey

• departure or boarding time

• flight/voyage/journey number

• final destination

Do not accept a transport document:

• which does not show the current date, departure or boarding time

• where the flight/voyage/journey has already departed

The normal transport document is the boarding card or ticket. However, if you have any doubts that the passenger is genuine, ask to see alternative documents (such as their airline ticket and, if necessary their passport). Separate rules apply for passengers transiting another airport.

Unacceptable boarding cards

Some economy airlines are producing re-useable plastic boarding cards. These are unacceptable as valid transport documents because they do not show:

• the current date of travel

• flight number

• time of departure or boarding time

• final country of destination

They may also include manuscript information that the passenger can change.

In these circumstances, you must inspect the passenger’s airline ticket before making any sales.

Where the passenger does not hold an airline ticket, they must produce a valid alternative document (for example, duty free shopping vouchers). Although the supply of these shopping vouchers are a commercial arrangement (provided by either the airline or airport authority), you must confirm that their use meets our approval. You must also make sure your staff can recognise that they are valid.

Remember, you carry the liability for any excise duty due on any ineligible duty free sales.

7. Removals other than sales

7.1 Removal of excise goods from my export shop under duty suspension

You can carry out this type of removal providing you are:

• moving goods to another export shop within the same airport, port, railway station or terminal and are the authorised warehousekeeper of both shops

• returning goods back to the general storage and distribution warehouse that originally supplied them

• removing excise goods for a specific purpose, which must carry our approval in each case

You will find full details on the procedures for removing excise goods in duty suspension in Notice 197. You should be aware of the limitations of your trade facility warehouse approval before you remove goods in duty suspension.

7.2 Removal of excise duty suspended stock for promotional purposes

You must obtain specific authorisation from HMRC. Include full details with your request giving the reason for the removal (such as, photographic or publicity purposes). After authorisation, you must provide a full audit trail within your records. See also section 15.

8. Pre-ordered goods

Passengers can order goods from the export shop personally, by phone or electronic means (for example, the Internet). You should advise passengers that when they collect their goods on the day of travel, they must produce a valid transport document to prove their entitlement.

Entitled passengers may pre-order excise duty free goods, but they can only collect them on the outward journey on the date of travel. You must make sure that the person collecting the goods is the same person who originally placed the order and that they hold sufficient evidence of their entitlement to duty free. Duty free goods must accompany the entitled passenger when leaving the UK.

Important note: entitled passengers cannot collect duty free goods on their return to the UK.

8.1 Pre-ordered duty paid goods

Duty paid sales can be made providing your accounting system can separately identify that the sale is duty paid. If you are in any doubt, contact the HMRC Excise Helpline to confirm your proposed system is satisfactory. Passengers may leave pre-ordered excise duty paid goods for collection on their return to the UK. You may hold these goods within your warehouse awaiting collection by the passenger after their return to the UK only if your approval allows the storage of duty paid goods.

Important note: this facility is not available for duty free goods.

8.2 Procedures to follow when a passenger collects pre-ordered duty paid goods

Before releasing the goods you should…	you must…	the passenger must…	which must include…
ask the passenger for acceptable identification	make sure that the person collecting the goods is the same person who originally placed the order	produce sufficient documentary evidence to support their entitlement	evidence of a valid transport document, proving they made the intended journey

Where the original order was made electronically or by phone, you must inspect and enter details in your records of the transport document produced at the time the goods are collected.

8.3 Passengers collecting pre-ordered duty paid goods from a different port, airport, railway station or terminal on their return to the UK

The passenger must satisfy you that they will genuinely return to a different port or airport. Establish this by inspecting the passenger’s ticket. You must make sure that the export shop at that port, airport, railway station or terminal is prepared to provide the goods, before accepting the sale.

If the passenger cannot personally collect the pre-ordered goods and you are satisfied with the explanation given, you may permit another person to collect them on the passenger’s behalf. You will need to inspect sufficient documents to satisfy yourself that the original passenger did actually travel and that the representative is genuine.

You must keep a record of the:

• name and address of the original passenger

• circumstances that made it impracticable for the original passenger to collect the pre-ordered goods in person

• name and address of the person acting as the original passenger’s representative

You should include details of documents inspected, or confirmation from the airline, ship operator or railway operator that the original passenger actually travelled. Keep all these records as part of your accounts which must provide a satisfactory audit trail.

9. Excise Duty points

9.1 Excise Duty point for an export shop

It is the time when goods first become liable to Excise Duty, which occurs at the time they are deposited into the export shop’s storage facility. This Excise Duty point also applies to most tobacco products, other than ‘fine’ cigars.

If an export shop is approved to use the special payment arrangements, the Excise Duty point occurs at the point of sale (the till), although the duty is pre-paid monthly.

The excise duty point does not apply when excise goods are:

• sold duty free to entitled passengers

• removed to another export shop in the same port, airport, railway station or terminal

• returned to the original supplying general and distribution excise warehouse

• removed under special conditions approved individually by us

Providing you follow the correct removal procedures, these goods will retain their duty suspended status.

10. Special payment arrangements

The legal basis for excluding certain excise goods from the special payment arrangements is in Regulation 7(3) of the Excise Goods (Export Shops) Regulation 2000.

The special payment arrangements allow an export shop operator who sells 50% or more of excise goods to entitled passengers to:

• receive and store all goods within his export shop under duty suspension

• delay the excise duty point until the point of sale, although an advance payment is necessary each month, and

• after deduction of the advanced payment, pay any additional excise duty due by direct debit up to 10 days after the end of the accounting period

To apply for special payment arrangements you must:

• write to HMRC asking for approval

• include details of your proposed monthly advance payment

• set up a separate bank account with direct debit facilities, for use in paying any additional Excise Duty due at the end of each accounting period

We will:

• confirm your approval in writing

• send a copy of this approval to the Accounting Centre at:

Accounting Centre
St Mungo’s Road
Cumbernauld
Glasgow
G70 5TR

Email: cfo.reconciliations@hmrc.gov.uk

The Accounting Centre will send a direct debit mandate form for your completion.

If you wish to make changes to the approved arrangements, you must notify us immediately.

Excise goods excluded from the special payment arrangements are identified below:

The following requirement has the force of law

All tobacco products, except ‘fine cigars’ defined as:

• hand-rolled

• non-machine manufactured

• wrapped in natural leaf (not reconstituted tobacco)

• stored in humidors (where provided)

• retailed at a minimum of £3.00 per cigar

If HMRC does not approve the application for the special payment arrangements, we will write to you giving our reasons. Without this approval you must segregate all your duty suspended and duty paid stock under the co-storage procedures.

If HMRC withdraw your special payment arrangements, we will write to you giving our reasons, such as irregularities connected with your payments or returns (Regulation 12(5) of ESR). Where this occurs you must immediately pay any Excise Duty due on goods held in duty suspension and intended for sale to non-entitled passengers. You must calculate all Excise Duty due at the Excise Duty point and follow the payment procedures outlined in Notice 197.

You will need to complete a final return form at the end of your last accounting period. You should forward the return to the Accounting Centre in the normal way.

HMRC will not approve any changes to your special payment arrangements during an accounting period, unless there are exceptional reasons.

Where this is unavoidable, we would require you to calculate all excise duty due up to the point of change.

The advance payment

This is a sum you must pay at the beginning of each calendar accounting period. It represents an agreed estimate of the excise duty due on sales to non-entitled passengers during that same month.

Before you make your first advance payment, you must contact HMRC to agree a monthly sum. Base your estimated figure on average monthly sales to non-entitled passengers over the past 12 months.

Once agreed, HMRC will write to you approving the advance payment. It will remain fixed for 12 months with all future reviews normally taking place annually.

If you are a new trader, calculate the advance payment under the procedures set out below:

You will need to…	After 6 months you must…
agree an estimated projection of duty paid sales with us. We will fix this agreed figure for 6 months.	review this figure by calculating the average monthly sales to non-entitled passengers over the previous 6 months trading. Contact us for agreement and re-approval of any adjusted figure. Normally, all future reviews will take place annually.

If you cannot agree a monthly advance payment figure with HMRC, you must base the advance payment figure on the total Excise Duty due on all excise goods held in your export shop, on the day you make your return.

Providing you give HMRC a month’s notice and they agree the new figure, the monthly advanced payment can be varied.

We can both vary this agreement at any time, but both parties must agree any new payment figure.

You will only make regular monthly payments if you are operating the special payment arrangements.

At the end of each accounting period (calendar month), calculate the total Excise Duty due from sales to non-entitled passengers over the previous month. On receipt of your completed return form, the Accounting Centre will collect all excise duties due by direct debit from your designated bank account.

Each accounting period covers 1 calendar month. HMRC will not authorise any alternative accounting periods.

The Accounting Centre address is:

Accounts Office
St Mungo’s Road
Cumbernauld
Glasgow
G70 5TR

You must make payment on or before your payment date, which is the same day as your return date (tenth). You must make sure you have sufficient funds in your designated bank account from that date to cover the duty due for that accounting period. Once your return has been processed, we will claim the relevant amount by direct debit.

If you have any problems connected with your direct debit banking system or your account, contact the Accounting Centre immediately with all relevant details. They will advise you of the alternative arrangements.

11. Special payment returns

The legal basis for using a specified return form is in Regulations 14(4) and (5) of the Excise Goods (Export Shops) Regulation 2000.

You will need to quote your Payment Reference Number which you will receive from the Accounting Centre as part of your special payment approval.

To complete a return you will need to enter the:

• correct tax type code for each stock - see Volume 1, Part 12 of the UK Tariff

• number of litres of alcohol within each tax type

• total weight of ‘fine cigars’

• rate and amount of Excise Duty for each tax type

• advance payment due and

• the previous month’s advance payment

To calculate the total duty due you should:

• total the amounts of duty payable on all tax types

• add the ‘Advance Payment Due’

• subtract the ‘Previous Month’s Advance Payment’ then

• enter the total in the ‘Total Duty due’ box

The following requirement has the force of law

Send your monthly return to the Accounting Centre.

You must send your monthly return to the…	If the tenth day of the month falls on…
Accounting Centre, to arrive on or before the tenth day of the month following the accounting period (calendar month).	Saturday, Sunday, Good Friday, or Easter Monday, use the next day that is not one of these days. No other Bank Holidays affect the due date.

If you have a special payment arrangement you are legally obliged to complete a return every month, even if the figure in the ‘Total Duty Due’ box is nil. Normally the figures in the ‘Advance Payment Due’ box and the ‘Previous Month’s Advance Payment’ box will be equal.

Please contact the Accounting Centre for more information on the submission of electronic returns.

HMRC will contact you if your return is late. If you continue to submit late returns we may take measures to improve your compliance, or decide to withdraw your special payment approval. The excise assessments and penalties procedures as described in the Excise Assessments Interim Guidance and Notice 209 Civil Penalties: Fixed, geared and daily, will apply.

When you cease to trade you should show on your last return, ‘nil’ in the ‘Advance Payment Due’ box and complete the ‘Previous Month’s Advance Payment’ box. HMRC will refund any balance after agreeing it is correct and deducting any other duties you owe us.

12. Customs Duty

Customs Duty free sales can be made to entitled passengers. These goods must accompany the entitled passenger to their destination outside the UK or, in the case of export shops located in Northern Ireland outside both the UK and the customs territory of the EU.

Important note: Unless your premises are separately authorised as a customs warehouse, you cannot hold Customs Duty suspended stock in your export shop. To apply for customs warehouse authorisation, you will need to submit an application for a customs warehouse authorisation. Find further information in Notice 3001.

You can sell Customs Duty suspended goods to non-entitled passengers but you must note these sales in your records at the point of sale. This must show that you made the sale to a non-entitled passenger and that you will account for any Customs Duty and import VAT payable. To operate this arrangement, you must obtain a CSE authorisation.

Excise goods are considered to be in free circulation after paying Customs Duty on warehoused non-UK goods, or non-UK and non-EU goods in the case of Northern Ireland. When goods are in free circulation you can continue to warehouse them under excise duty suspension in your export shop. However, you should note your stock records with the serial number and month of form C88 including the date when you paid the Customs Duty.

You can sell Customs Duty free goods only if your export shop is also approved as a customs warehouse. The same conditions covering pre-ordered excise goods also apply to customs goods.

To move Customs Duty suspended goods to a different location you can either:

• include the new location into your customs warehouse authorisation - you will need to note the change of location in your records

• authorise it as a separate customs warehouse - you will need to apply for the inter-warehouse transfer arrangements

13. Delayed, cancelled or put-back voyage, flight or journey

Immediately you learn of a delayed or cancelled voyage, flight or journey you must stop selling any further goods to those passengers. We expect you to secure all purchases on behalf of the passengers who intend to leave the port, airport, railway station or terminal. You will need to either:

• suitably identify and keep the goods under secure conditions for later collection and exportation by the passengers

• use any arrangements previously agreed by us

Any duty free products you hold on behalf of the passenger, but not collected after the flight, voyage or journey has departed, should be re-warehoused and the sale cancelled. You may refund money to any passenger making a claim. This is known as a ‘buy-back procedure’.

We may wish to examine the circumstances concerning any ‘buy back’ procedures and will consider each case on its merits. However, if we are not satisfied that you have followed the correct procedures, we may ask you to pay duty and VAT on any deficiencies.

You do not need to take any action with duty paid goods, other than keeping a record of any delayed or cancelled voyages, flights or journeys.

Put-back aircraft, vessels or trains are flights, voyages or journeys that may have to return to their original port, airport, railway station or terminal of departure, without reaching the intended destination. It is the airline, ferry or train operator’s responsibility to supply details for our investigation if requested.

If you have sold duty free goods to passengers on any put-back vessel, aircraft or train ,use the same secure/refund procedures for delayed or cancelled voyages, flights or journeys.

Passengers must export all duty free purchases intact. It is your responsibility to make sure there are sufficient notices within your shop premises to advise passengers of this requirement. If your staff observe any passenger opening a package, they should tactfully remind the passenger of the restriction and offer to reseal it.

If during a ‘buy back’ situation a passenger hands you an opened package, where available you should advise the passenger to proceed to the Customs red channel or phone, or declare the goods using HMRC’s online service for passengers.

You are not required to:

• collect duty and VAT on the opened package

• return the goods into your stock for disposal

Before allowing the passenger to proceed with the goods, take details of the sale. This should include both the:

• product

• invoice or till receipt number

Keep these details as part of your records for audit purposes.

14. Miscellaneous questions

14.1 Lost property

Where duty free goods purchased from your export shop are left in the departure lounge and returned to you by another passenger or a member of the port, airport, railway station or terminal staff, you should:

• accept the goods

• cancel the original sale

• re-warehouse them back into your duty suspended stock

• consider refunding money to any passenger’s claim

You are not required to handle or store returned duty paid goods. You should arrange to have these passed on to the lost property office of the port, airport, railway station or terminal.

14.2 Sales promotions

You may undertake sales promotions within the export shop only if you:

• notify us before the promotion starts

• supply any samples for consumption from duty paid stock

• satisfy us that these samples cannot be mistaken for duty free products

HMRC normally allow static advertising displays within the export shop, but this material must not cover-up any of our signs or notices.

14.3 Common lounges

These are areas within ports and airports to provide a common holding area for both domestic and international passengers. It is situated after the security checkpoint but prior to any customs or immigration controls (if provided). Common lounges are the responsibility of the appropriate port or airport authority and separately approved by HMRC. You will not be involved in this approval.

15. Glossary

Term	Explanation
Approved place	A place approved by the Commissioners within a port, airport, railway station or terminal in the UK, for the collection of pre-ordered goods.
Authorised warehousekeeper	An approved and registered occupier of an excise warehouse (export shop), under regulation 3 of WOWGR.
CEMA	The Customs and Excise Management Act 1979.
Commissioners	The Commissioners of HM Revenue and Customs.
Customs duty	An indirect tax on goods imported from outside the UK into Great Britain, or from outside both the UK and EU into Northern Ireland, sometimes referred to as ‘import duty’.
Customs warehouse	A system or place authorised by HMRC for the storage of non-UK goods, under customs duty and/or import VAT suspension.
Customs and excise warehouse	A warehouse separately authorised by the Commissioners for: the deposit of goods liable to Customs Duty and excise duty under CEMA Section 92.
Entitled passenger	A person travelling by sea, air or rail from Great Britain to a country outside the UK or from Northern Ireland to a country outside both the UK and EU and in possession of a relevant transport document.
ESR	The Excise Goods (Export Shops) Regulations 2000
Excise Duty	An indirect tax on beer, wine, made-wine, cider, perry, spirits, cigarettes and other tobacco products. The tax applies to both UK-produced and imported goods.
Excise warehouse	A warehouse authorised by the Commissioners under CEMA section 92(1) for the deposit without payment of duty of goods liable to excisedDuty.
Export shop	An excise warehouse approved for the supply of excise goods to entitled passengers without payment of excise duty, under Regulation 3 of the Excise Goods (Export Shops) Regulations 2000.
Free circulation	Once import procedures have been completed and any customs duties or similar charges have been paid in the UK, goods are said to be in ‘free circulation’ within the UK.
Flight sheets	A duplicate list completed by the export shop operator for each flight, identifying sales to passengers by invoice number and date.
General aviation	Privately owned aircraft carrying non-fare paying passengers.
Non-entitled passengers	A person in possession of a valid transport document, travelling by sea, air or rail to a destination within the UK, including the Isle of Man, or between Northern Ireland and the EU.
Principal	A person who arranges the guarantee and uses it to provide financial security.
Proprietor	In relation to excise goods this term includes any owner, importer, exporter, shipper, or other person owning or being beneficially interested in the goods.
Qualifying journey	In the context of this notice, a qualifying journey is where, if the individual was a normal passenger, they would be travelling under a relevant transport document and therefore would be an entitled passenger.
Relevant transport document	A transport document for a voyage, flight or international railway journey to a destination outside the United Kingdom, other than the Isle of Man, but does not include a transport document for a journey from a port, airport or international railway station or terminal in Northern Ireland to a destination in the EU.
Tax warehouse	A term for premises authorised under UK legislation for the: holding receipt or dispatch of excise goods under duty suspension arrangements. All Excise and Customs and Excise Warehouses are Tax Warehouses.
Tobacco products	These include: cigarettes cigars hand-rolling tobacco other smoking tobacco chewing tobacco tobacco for heating
Trade facility warehouse	An excise warehouse where approval restricts the activities specifically to the needs of the export shop. This type of warehouse does not require the qualifying criteria of a general storage and distribution warehouse.
Unit of account	The type or size of packing in which the goods are sold. For example packets of 20 cigarettes.

16. The Law relating to Export Shops

Title	Abbreviation
Customs and Excise Management Act 1979	CEMA
The Excise Goods (Drawback) Regulations 1995 (SI 1995/1046)	EGDR
The Excise Goods (Export Shop) Regulations 2000 (SI 2000/645)	ESR
The Excise Warehousing (etc) Regulations 1988 (SI 1988/809)	EWER
Revenue Traders (Accounts and Records) Regulations 1992 (SI 1992/3150)	RTAR
The Excise Goods (Drawback) Regulations 1995 (SI 1995/1046)	EGDR
The Value Added Tax Regulations 1995 (SI 1995/2518)	VATR
The Warehousekeepers and Owners of Warehoused Goods Regulations 1999 (SI 1999/1278)	WOWGR

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