AIR4210 - Alcoholic Ingredients Relief: Technical guidance: What about traders who use essences in the manufacture of liqueurs?

For traders who receive essences for use in the manufacture of liqueurs, there will be no fundamental change. Liqueurs are compounded spirits made almost exclusively in warehouse. Essences may be received into the warehouse without a W81 (or equivalent document) from the supplier and do not have to be entered into the warehouse stock record (though they will be recorded in internal business records). The essences will be mixed with “real” spirits to produce the liqueur and duty will be attracted at the spirits rate on the total alcohol content of the product on removal to home use.