Notice

Commercial importers, certified traders and tax representatives — EU trade in duty paid excise goods (Excise Notice 204b)

Updated 31 December 2023

1. Introduction

1.1 About this notice

This notice sets out the UK’s requirements for the commercial movement of excise goods between Northern Ireland and the EU which are released for consumption in the UK or an EU member state. Such goods are referred to throughout this notice as duty-paid goods and are normally available for purchase from cash and carries, supermarkets and wholesalers in the country of dispatch.

Sections 3 to 10 describe the standard scheme for importing such goods as an unregistered commercial importer (UCI), as well as the registered commercial importer scheme. These continue to be valid schemes until 12 February 2023.

Section 11 provides information on the new certified consignee and certified consignor schemes, including their temporary versions. These replaced the commercial importer schemes from 13 February 2023.

Section 11.4.1 also contains a legal provision providing for an end date to the current transitional arrangements for moving duty-paid goods as 31 July 2024, as the new electronic process, using the Excise Movement and Control System (EMCS), will come into effect from 1 August 2024.

Sections 12 and 13 cover the requirements for distance selling and UK tax representatives, which are unaffected by the changes to duty-paid movements.

It contains:

• general conditions and requirements
• application procedures
• duty payment procedures

It also sets out your rights and obligations as an importer or exporter of duty-paid goods.

The systems and procedures in this notice do not apply to movements between Great Britain (England, Wales and Scotland) and the EU.

If you are importing or exporting excise goods to or from the EU in excise duty suspension you should read Receive goods into and remove goods from an excise warehouse (Excise Notice 197).

1.2 Who should read this notice

You must read this notice if you want to move excise goods for commercial purposes between Northern Ireland and EU member states, which have already been duty-paid in the country of dispatch.

This includes traders in EU countries who are selling such goods remotely to private individuals in Northern Ireland (for example using the internet or mail order), and anyone wanting to act as a tax representative on behalf of such traders.

The fact that duty has been paid on the goods in an EU member state does not affect the requirement to secure the UK duty on commercial supplies of those goods, before they’re dispatched to Northern Ireland.

1.3 Other notices to read

You’ll need to read:

• about how to use your duty deferment account
• Excise Notice 206: revenue traders’ records
• Excise duty drawback (Excise Notice 207)
• Excise Notice 476: Tobacco Products Duty
• UK Duty Stamps Scheme (Excise Notice DS5)
• Excise Notice 2002: Alcohol Wholesaler Registration Scheme

1.4 If you want a copy of any forms or notices

If you want copies of the forms and notices mentioned in this notice, follow the relevant links.

1.5 Contacting HMRC

Unless you are told otherwise, either in this notice or in writing, your first point of contact is the excise enquiries helpline. Details of other teams that you may need to contact are in section 17 of this notice.

1.6 Response times

HMRC will respond in line with its charter standards.

2. Legal background

2.1 The law

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

• The Customs and Excise Management Act 1979 (CEMA)
• The Rehabilitation of Offenders Act 1974 (ROA)
• Finance Act 1994 (FA94)

You’ll find detailed requirements in:

• The Revenue Traders (Accounts and Records) Regulations 1992 (SI 1992 No. 3150) (RTAR)
• The Excise Duties (Deferred Payment) Regulations 1992 (SI 1992 No. 3152) (EDDPR)
• The Duty Stamps Regulations 2006 (SI 2006/202) (DSR)
• The Excise Goods (Holding, Movement and Duty Point) Regulations 2010 (HMDP)
• The Excise Goods (Holding, Movement and Duty Point) Regulations 2010 that applies in Northern Ireland (NI HMDP)

This UK law enacts the requirements placed by EU Council Directive 2008/118/EC OJ L9 14.01.09, as well as implementing the requirements that apply from 13 February 2023 as a result of EU Council Directive 2020/262 OJ L 58, 27.2.2020.

2.2 How the law is referred to in this notice

When this notice refers directly to the law, the standard abbreviations as shown in paragraph 2.1 will be used.

2.3 If you fail to meet your legal obligations

If you do not meet your legal obligations, HMRC may impose civil penalties for breaches of the regulations and the conditions set out in this notice. For more serious offences we may revoke any approval we may have granted you, or even prosecute you.

If you move excise goods or arrange for their movement, without the appropriate and correctly completed accompanying documentation, or first paying (or securing payment of) duty in the country of destination, the goods and vehicle will be liable to forfeiture. You may also be liable to a civil penalty or prosecution.

For information on how to appeal against any decision we make, read section 16.

3. Overview of the schemes

3.1 Excise goods covered

The schemes apply to:

• energy products, for example mineral oils (also known as hydrocarbon oils)
• alcohol and alcoholic drinks
• manufactured tobacco (cigarettes, cigars, hand-rolling tobacco, other smoking tobacco and tobacco for heating)

Where these goods are duty-paid in the country of dispatch.

3.2 Do all duty-paid movements follow the same process

Unless otherwise stated, the information given in sections 3 to 7 of this notice relates to the standard scheme (also known as the unregistered commercial importer scheme).

The registered commercial importer (RCI) scheme is almost identical to the standard one, but with a different accounting procedure. For further information about specific registered commercial importer requirements, read section 8.

For movements starting on or after 13 February 2023, you will need to follow the requirements of either the certified consignee and certified consignor scheme. More information on these can be found in section 11.

Additionally, if you want to sell duty-paid goods from an EU member state to private individuals in Northern Ireland (known as distance selling), for example, using the internet, you must appoint a Northern Ireland tax representative to account for the UK duty. For further information on distance selling and tax representatives, read sections 12 and 13.

The rules and requirements for distance selling are not affected by the changes introduced from 13 February 2023.

3.3 How the standard duty-paid scheme works

To import goods into Northern Ireland from the EU using the standard duty-paid scheme you must follow a few basic procedures:

• before undertaking any duty-paid movements of excise goods, you must provide the duty-paid movements team with advance information about the consignment by completing and returning form HM4 and securing payment of the UK duty due on the goods
• provide your supplier with evidence that the UK duty has been secured (the endorsed form HM4)

• notify any changes to the duty-paid movements team immediately

• advise the duty-paid movements team immediately of the arrival of the goods at the delivery address

• on completion of the movement, make sure that the duty and VAT due is paid in full, and

• if required, provide a certificate of receipt to your supplier

3.4 Registering to receive or send goods which have been duty-paid in the UK or an EU member state

Prior to 13 February 2023, you can continue to use the standard duty-paid system without the need to be registered. HMRC will authorise each movement on a consignment by consignment basis on the receipt of a completed form HM4 and payment of the UK duty on the goods.

If you want to pay the duty using deferment arrangements, for movements of duty-paid goods that start before 13 February 2023, you’ll need to apply to be authorised as a registered commercial importer. Read section 8 for further information.

From 13 February 2023, if you wish to move duty-paid goods between Northern Ireland and EU member states, you must be authorised as a certified consignee and certified consignor, depending on whether you are importing into or exporting goods from Northern Ireland. Details on how to gain authorisation are provided in section 8 of this notice.

In addition, if you want to account for the duty on EU goods that are dispatched to a private individual in the UK (known as distance selling) then you must be authorised as a tax representative. Read section 13 for further information.

The rules for distance selling are not affected by the changes from 13 February 2023.

3.5 Receiving excise goods from suppliers based in non-EU countries

You cannot use these schemes to send or receive goods to and from suppliers based in non-EU countries. These schemes can only be used to move excise duty-paid goods between Northern Ireland and EU member states.

3.6 Combining a purchasing trip with a holiday

You can do this, but you must use one of the schemes for importing commercial duty-paid goods into the UK, as detailed in this notice. You must complete and return form HM4 and secure the UK duty before you leave the UK.

3.7 Using the UK duty-paid scheme if you’re based in an EU member state

You can use the UK duty-paid schemes, as long as you follow all the procedures set out in this notice and comply with any conditions in force in your own member state. However, if the goods being imported are being delivered to a private individual in Northern Ireland, you must appoint a UK tax representative to account for the UK duty on your behalf (read sections 12 and 13).

3.8 If you want to receive goods you’ve purchased from an EU supplier for personal use

This form of transaction is known as ‘distance selling’ and the arrangements set out at section 12 must be followed.

If you wish to receive excise goods in this manner, the person who sells you the goods is responsible for ensuring that the UK duty is paid before the goods are dispatched to you.

3.9 Bringing excise goods in from an EU country

If you want to import duty-paid goods, then you must follow one of the schemes set out in this notice. Which one you need to use will depend on whether you wish to pay the duty by deferment and whether the movement starts before or after 13 February 2023.

If you want to import excise goods in duty-suspension, you may choose to:

• apply for approval as a registered consignee and comply with the procedures described in Excise Notice 203a: registered consignees

• use the services of a registered consignee acting on your behalf

• apply for approval as a temporary registered consignee and comply with the procedures described in Temporary Registered Consignees (Excise Notice 204a)

• use the services of an authorised warehousekeeper who receives goods on your behalf into an ‘excise warehouse’ (if you are the owner of goods held in duty-suspension, in an excise warehouse, you must be registered under the Warehousekeepers and Owners of Warehoused Goods Regulations 1999) — for more details read Registration and approval of excise goods held in duty suspension (Excise Notice 196)

3.10 Marking requirements for excise goods

Subject to certain exceptions, alcohol in bottle sizes of 35cl or more with an alcoholic strength of 30% or more which are intended for retail sale in the UK must bear a duty stamp.

You can find more information about duty stamps in section 14 of this notice and in UK Duty Stamps Scheme (Excise Notice DS5).

Also, there are fiscal marking and health warning requirements that you must be aware of and follow if you intend to import tobacco products such as cigarettes or hand-rolling tobacco.

You can find more information about fiscal marking in Excise Notice 476: Tobacco Products Duty.

4. Before you can receive goods under the Commercial Importer scheme

4.1 Notifying HMRC of a consignment

You should set aside enough time to:

• allow HMRC to receive and process your completed form HM4 (including postal delays)

• allow your payment to clear, particularly if you choose to secure the duty using an unguaranteed cheque

• tell your supplier that the duty has been secured

As long as we receive accurate and complete details from you, we aim to process your form HM4 within 15 working days.

For movements starting on or after 13 February 2023, you must also follow the transitional arrangements rules covered in section 11 of this notice.

4.2 Information you must provide in support of your application

Before HMRC returns your form HM4, endorsed with your unique reference number for that consignment, we will check that you’ve given us all the required information regarding trading details and information about the consignment.

This will include:

• your name, address and business phone number

• details of your supplier and customers

• the Northern Ireland delivery address (read paragraph 4.11)

• details of the consignment you want to import (for example, brand and quantities)

• details of the transporter you’ll use (including vehicle registration details), and

• details of any excise goods on which duty stamps should be affixed (read section 14)

If you cannot provide these details we may not be able to process your form.

However, we accept that you may not know the details of the transporter or the vehicle registration number at the time of completion. You should let the duty-paid movements team know these details as soon as possible and certainly before arrival in Northern Ireland.

4.3 How to complete form HM4

There are notes for completion, which accompany the form. These provide full details of how to complete it.

If you are still in doubt after reading the notes, you should contact the duty-paid movements team for assistance.

Once completed, this form should be returned to the duty-paid movements team at the address given on the form.

4.4 Tell us about any changes

You need to immediately notify the duty-paid movements team of any changes to the information you’ve supplied.

We would expect you to notify us of these changes as soon as they become known, and certainly before the goods arrive in Northern Ireland.

Failure to notify these changes may render the goods liable to forfeiture and you liable to a civil penalty.

4.5 How to work out the duty

We have given examples of how to calculate the duty for excise goods in Section 18. Refer to these and to section 7 Calculation of the duty.

4.6 When to pay the duty payable on the consignment

Under the standard scheme, in use prior to 13 February 2023, you must secure the total duty due on each consignment at the time of submitting your completed form HM4 to the duty-paid movements team for authorisation.

This amount becomes an actual duty payment once you’ve notified us of the receipt of the goods. Should the amount of duty payable subsequently change, for example, due to excesses or shortages, either a further payment may be required or, if you can show that you’ve overpaid excise duty, you’ll be entitled to a refund of that overpayment.

If you want to use a deferment account to secure the duty:

• for movements starting prior to 13 February 2023, you must apply to be authorised as a registered commercial importer

• for movements starting on or after that date, you must obtain approval as a certified consignee

For further information read section 9.

4.7 Methods of payment

HMRC will accept a Bacs payment, banker’s draft, postal order or cheque.

You should be aware that if you present a non-guaranteed cheque it can take up to 10 working days to clear. We are unable to fully process your form until your cheque has cleared.

If you pay by cheque and also need duty stamps to affix to bottles of spirits (read section 13), we will not provide them until the cheque clears.

4.8 How to show you’ve secured the UK duty

Once you’ve secured the UK duty, form HM4 will be returned to you, endorsed with a unique reference number for that consignment. If required, this reference number can be used to verify that you’ve secured the UK duty on those goods.

Goods should not be dispatched until you’ve notified your supplier of the unique reference number, which should then accompany the goods.

4.9 How to account for VAT

If you are registered for VAT, you should account for acquisition VAT on your VAT return for the period covering the date of acquisition of the goods. You’ll find more details about this in VAT on movements of goods between Northern Ireland and the EU.

If you are not registered for VAT, you must make arrangements to pay the VAT at the current rate on the total value of the goods, including the excise duty. You may use form HM4 to pay VAT, but you’ll not be able to calculate the actual VAT payable until you’ve obtained the goods.

4.10 If you want to take delivery of more than one consignment

You’ll need to apply for a separate form HM4 for each consignment.

If you are using the standard scheme you can only have a single valid form HM4 at any one time.

This means that HMRC will only authorise another HM4 for a second consignment once you’ve notified us that the previous consignment has been received and you’ve paid any outstanding duties or taxes.

4.11 If goods are to be delivered to more than one address

If you are using the standard scheme, the goods must be delivered to your business premises, as stated on form HM4.

If you are authorised as a registered commercial importer, you may arrange for the goods to be delivered to a business address, which must be stated on form HM4 for that movement. You’ll need to complete a separate form HM4 for each delivery address.

4.12 If your intended supplier does not have the goods you need

As long as you notify HMRC before the goods are dispatched, you can change your intended supplier.

4.13 Changing your mind over the quantity and/or type of goods you want to import

As long as you notify HMRC before the goods are dispatched, you can change your mind over the quantity or type of goods you want to import. Any additional duty must be secured with us before the movement can take place, which may affect the dispatch date.

4.14 If you lose your reference number

If you lose your reference number for a particular consignment, you should contact the duty-paid movements team by phone as soon as possible and ask them to provide you with a reminder.

It is very important that you know the reference number for a particular consignment, as you’ll need to quote it when contacting HMRC about any aspect of the movement, including informing us of the receipt of the goods.

This number should also accompany the goods during the movement to avoid undue delay if stopped by the Border Force on arrival in Northern Ireland. For this purpose, we recommend that you arrange for form HM4, which we have endorsed with the reference number, to accompany the goods.

4.15 If you do not need the reference number

If you find that your circumstances have changed and you no longer need the reference number, you should notify the duty-paid movements team immediately. They’ll advise you of what to do next.

4.16 Completed form accompanying the movement

There is no legal requirement for the original form to accompany the movement. However, HMRC recommends that the goods are at least accompanied by the reference number provided by the duty-paid movements team for that consignment, to avoid any undue delay should it be stopped on arrival in Northern Ireland. As we endorse your form HM4 with this reference number, you may want to have a copy of this form to accompany the goods. Alternatively, your supplier may choose to add the reference number to the commercial documentation which must accompany the goods.

If the person transporting the goods is unable to provide a valid reference number for a movement, the goods may be delayed whilst checks are carried out to verify that the movement has been notified to us and the UK duty has been secured.

You should keep a copy of the form, or any other references, for your records. You should also quote your reference number when contacting us about your duty-paid consignment.

4.17 Documents that must travel with the goods

Unless they’re consigned under distance selling arrangements (read section 12), duty-paid movements of excise goods must be accompanied by a simplified administrative accompanying document (SAAD) (copies 2 and 3) that complies with EU requirements. The goods must also be consigned to the person shown on the SAAD as the recipient.

It is normally up to your supplier to produce the SAAD, however you may produce one on behalf of your supplier. HMRC does not provide supplies of this document. Details of what information a SAAD must include are contained in EU Commission Regulation 3649/92/EEC.

A commercial document can be used instead of a SAAD provided that it contains the same information. The layout of data on commercial documents can differ, however each item of information must have the same box number as on the SAAD. You must make sure that such commercial documents are marked, ‘Simplified accompanying document (excise goods) for fiscal control purposes.’

If you move, or arrange for the movement of, excise goods without the appropriate and correctly completed documentation, and without prior payment of duty, the goods and vehicle will be liable to forfeiture, and you may be liable to civil penalty and may even face prosecution.

5. After the goods have been received

5.1 When you receive the goods

As soon as you receive the goods, you must:

• inform the duty-paid movements team, by phone, of their arrival

• complete the certificate of receipt on the accompanying SAAD

• calculate, and account for, the UK VAT payable on the consignment

• return form HM4 to the duty-paid movements team along with a copy of the receipted SAAD and payment for any outstanding duty or VAT

• make sure that any goods which are required to bear a duty stamp have one affixed within 14 days of the importation of the goods (read section 14 for more information)

If you are receiving goods from a movement that started on or after 13 February 2023, you must follow the rules for the transitional arrangements covered in section 11 of this notice.

You’ll find further accounting information in section 7.

5.2 Certificate of receipt to provide to your supplier

After unloading and checking the goods are complete, you must endorse copy 2 and 3 of the SAAD to acknowledge receipt. Show the following details:

• the date and place of receipt of the goods

• a description of the goods received

• if the goods agree with the accompanying document’s description, the words ‘consignment checked’ (if the goods do not agree with the consignor’s description, follow the procedures set out in section 6 as appropriate)

• your reference number

• an authorised signature

You must keep in your records copy 2 of the accompanying document together with the receipted copy 3 (either the original, or a photocopy of this, where your supplier requires the original).

If you are receiving goods from a movement that started on or after 13 February 2023, you must follow the rules for the transitional arrangements covered in section 11 of this notice.

5.3 Documents to provide to HMRC

You must get form HM4 to our duty-paid movements team within 4 business days of receipt of the goods. You should also supply a copy of the SAAD for that movement. You should keep a copy of the form for your records. If you are not VAT registered, you should also enclose a banker’s draft, guaranteed cheque, or postal order for the total amount of UK VAT payable on the consignment.

We may not issue further HM4s where there are consignments still outstanding. It is in your interest, therefore, to return the correctly completed documentation to us within the required timescales.

For movements starting on or after 13 February 2023, you must follow the transitional arrangements rules covered in section 11 of this notice.

6. Irregularities

6.1 If the goods arrive without the accompanying document (SAAD)

You must inform our duty-paid movements team immediately by telephone.

Excise goods found to be travelling in Northern Ireland without the appropriate accompanying document are liable to forfeiture, therefore you should take steps to make sure that a SAAD travels with the goods at all times.

For movements starting on or after 13 February 2023, follow the transitional arrangement rules covered in section 11 of this notice.

6.2 If the goods are not what you ordered

If the goods are not what you ordered (for example, a different brand or product) you should still take full account of the goods when they arrive and advise the duty-paid movements team immediately by telephone.

If you subsequently decide to return the goods to the sender, then you may be able to reclaim the UK duty you’ve paid on them through the excise duty drawback scheme. For further information on the conditions and requirements for claiming drawback, read Excise duty drawback (Excise Notice 207).

6.3 If you discover shortages on receipt

You should bring any shortages to HMRC’s attention when submitting the completed form HM4.

Make sure you enter the actual goods received in your records.

The duty-paid movements team will advise you what steps to take to account for the duty on any chargeable losses in the consignment. If you can demonstrate that the loss is the result of the actual nature of the goods or an accident, we may not require payment of the duty. You should provide full details to the duty-paid movements team for us to consider on a case by case basis.

If you’ve over-paid any duty, you must submit a written request for repayment to us. You should enclose all relevant supporting documentation (for example, dispatch note, invoice, and copy of SAAD).

6.4 If you discover excesses on receipt

You must account for the UK duty on all excesses. Notify the duty-paid movements team immediately and they’ll give you advice on how to proceed.

If you subsequently decide to return the goods to the sender, then you may be able to reclaim the UK duty you’ve paid on them through the excise duty drawback scheme. For further information on the conditions and requirements for claiming drawback, read Excise duty drawback (Excise Notice 207).

If you do not pay duty on any excess goods you receive they’ll be liable to forfeiture.

6.5 If the goods do not arrive on the intended date

As soon as you become aware that the goods will not arrive on the intended date of arrival indicated on form HM4, or have not arrived on the expected date, you should notify the duty-paid movements team.

Any changes of more than 24 hours to the expected date of arrival must be notified to the duty-paid movements team immediately. They’ll advise you what steps to take.

7. Calculation of the duty

7.1 How to work out the duty payable

You are responsible for working out the correct UK duty due on each consignment, even if someone else works out the duty value on your behalf.

You must:

• determine the correct 3 digit tax type code for each product

• use the correct code for each class of goods received

You should then calculate the duty due on the consignment. Section 16 provides examples to help you with your duty calculation.

7.2 Rate to use

You must use the rate in force for the type of goods you intend to receive at the time when the goods are received.

7.3 Finding more information about tax types and duty rates

Current duty rates and tax types are published in Volume 1 of the Integrated Tariff of the UK. You can find the current duty rates in the rates and allowances.

7.4 Duty account

You must keep a duty account in accordance with our guidance in Excise Notice 206: revenue traders’ records summarising:

• all your transactions

• the duty which you are liable to pay

The duty account and its supporting documents must show:

• the duty due in each accounting period

• the excise duty point for each consignment

• the date and method of payment of any duty due

• any adjustments made to the amount of duty due in current or earlier accounting periods (for further information read section 13)

You should make sure that your duty account is kept fully up to date and a separate duty account must be kept for each scheme you use.

The account must have an audit trail. This means that each entry in the account must be traceable back to the relevant source document. Similarly it must be possible to trace any source document to the relevant entry in the duty account.

8. Registered commercial importers, certified consignees and consignors

8.1 What a registered commercial importer and a certified consignee are

A registered commercial importer, legally defined in Northern Ireland HMDP as a Northern Ireland registered commercial importer, is someone who is able to import goods into Northern Ireland that are already duty-paid in an EU member state, and defer payment of the duty using their own or someone else’s duty deferment account. Under this arrangement the duty is guaranteed by the duty deferment guarantee.

This trader type will cease to exist and from 13 February 2023 be replaced by a new trader type — a certified consignee.

All movements of duty-paid goods into Northern Ireland from the EU, on and after 13 February 2023, must be received by a certified consignee.

If you import duty-paid goods only occasionally, you may apply for approval as a temporary certified consignee, however each movement approval will be limited to a single movement from a single supplier and valid for a specified period of time.

Apart from the difference in payment method and the ability to have the goods delivered to other business addresses, the same procedures apply to registered commercial importers as to those traders using the standard duty-paid scheme (read sections 4 to 7).

8.2 How to apply to become a registered commercial importer or a certified consignee

To apply to become a registered commercial importer you must complete form HM3 and return it to the address on the form. Further information on the registration and approval process can be found in section 9.

The amended HM3 form must be used to apply for approval as a certified consignee for movements starting on or after 13 February 2023.

8.3 Requirements you must meet before you can apply to become a registered commercial importer or a certified consignee

To become a registered commercial importer prior to 13 February 2023 or a certified consignee after that date you must:

• have a place of business based in the United Kingdom — this however, is on condition that movements on which you are accounting for duty are of goods being delivered to a Northern Ireland address — this is where you must receive the goods

• have a duty deferment account, or have written permission to use someone else’s deferment account (read section 10)

• be able to demonstrate a business need to become a registered commercial importer or a certified consignee — for example, you should be able to provide HMRC with a viable business plan for your proposed business, including details of who you intend buying goods from and details of your customer base

• be able to demonstrate suitability to be a registered commercial importer or a certified consignee, for example, that you or any key personnel of the business do not have any unspent convictions or a recent compounded settlement

If you are using the temporary certified consignee scheme, there is no requirement to have a, or use someone else’s, duty deferment account as the UK duty must be secured with HMRC before the goods are dispatched.

Approval as a temporary certified consignee may also be granted to private individuals importing duty-paid goods, for commercial purposes, into Northern Ireland from EU member states. They cannot obtain approval as a full certified consignee.

8.4 How far in advance you should apply to become a registered commercial importer, a certified consignee and certified consignor

You must submit the completed application form to HMRC no less than 45 working days prior to the date from which you want to be approved.

Any movements into Northern Ireland from 13 February 2023 can only be received by a certified or a temporary certified consignee, therefore you need to take this into account when submitting your application.

8.5 Notify us of every consignment you receive as a registered commercial importer

It is a legal requirement for you to notify HMRC before each consignment prior to 13 February 2023 is dispatched. You should also do this when transitional arrangements are in place for movements on or after 13 February 2023.

You should do this by submitting a completed form HM4 to the duty-paid movements team for each consignment.

8.6 What a certified consignor is

A certified consignor is someone who, from 13 February 2023, is able to export excise goods from Northern Ireland to EU member states that are already UK duty-paid.

If you are exporting duty-paid goods only occasionally, you may apply to be approved as a temporary certified consignor, however each movement approval will be limited to a specified quantity of excise goods, a single consignee within a specified period of time.

A temporary certification, for a single movement, may also be granted to private individuals sending duty-paid goods for commercial purposes from Northern Ireland to EU member states.

8.7 How to register as a certified consignor

To apply to become a certified consignor you must complete form HM3 and return it to the address on the form.

You must submit the completed application form to HMRC no less than 45 working days prior to the date from which you want to be registered.

8.8 Requirements you must meet before you can apply to become a certified consignor

You need to:

• have a place of business based in the United Kingdom — this however, is on condition that movements of duty-paid goods are dispatched to an EU member state from a Northern Ireland address

• be able to demonstrate a business need to become a certified consignor — for example, you should be able to provide HMRC with a viable business plan for your proposed business, including details of who you intend to send the goods to, who are you buying the goods from and details of your customer base

• be able to demonstrate suitability to be a certified consignor — for example, that you or any key personnel of the business do not have any unspent convictions or a recent compounded settlement

If you export duty-paid goods from Northern Ireland to the EU as a certified or a temporary certified consignor, you may be able to reclaim the UK paid duty through the excise duty drawback scheme.

For further information on the conditions and requirements for claiming drawback, read Excise duty drawback (Excise Notice 207).

For movements starting on or after 13 February 2023, refer to the rules for transitional arrangements covered in section 11 of this notice.

9. Registration and approval process

9.1 Who needs to apply for approval

If you want to receive goods as a registered commercial importer, a certified consignee, a temporary certified consignee (read section 8) or a tax representative (read section 13), then you must apply for approval.

If you want to receive goods as an unregistered commercial importer using the standard duty-paid scheme for movements starting prior to 13 February 2023, then there is no approval required, although you must still follow the rules as laid down in this notice.

If you want to send goods as a certified consignor or a temporary certified consignor, you must apply for approval and follow the process.

Wherever we use the term certified consignor or certified consignee in this section we also mean the temporary versions of those schemes.

Traders with existing approvals for sending or receiving excise goods under duty-suspension, who also wish to trade in duty-paid goods, will still require an additional approval as a certified trader.

You must provide your existing approval number or numbers on the application form and HMRC may grant your certified trader approval without requiring any additional checks.

9.2 Information you must provide in support of your application

You must provide all the information requested in the application form. You must provide HMRC with details of:

• your business (including whether you are VAT registered)

• the type or types of goods that you want to be approved to send or receive

• any current or previous excise authorisations or approvals (including any applications that were refused)

• any unspent convictions under the Rehabilitation of Offenders Act (ROA) (other than for minor motoring offences), or any compounded settlements accepted during the preceding 3 years

• any deferment arrangements that you have in place

9.3 If you provide false or misleading information

If you provide false or misleading information on your application form, HMRC may:

• revoke any registration or approval which we have granted

• impose penalties

• prosecute you

9.4 If your application is rejected

HMRC may refuse to approve you. In particular, we reserve the right not to approve and register anyone who (at the time of applying) has an ‘unspent’ conviction under ROA (other than for minor motoring offences) or has accepted a compounded settlement during the preceding 3 years. In the case of partnerships and limited companies, this also applies to all the partners or key officials of the company.

You should not assume that we will agree to approve you. In particular, you should not place orders or enter into any binding financial agreements on the assumption that we will grant approval.

9.5 When your application is accepted

If HMRC accepts your application, we will issue you with a certificate of registration. You should check the accuracy of the details on the certificate which should be kept in a safe place and made available to our officers on request. Any inaccuracies should be reported to the Excise Processing Teams (EPT) immediately.

If we do not accept your application, we will inform you in writing and give our reasons for the rejection. If you disagree with our decision, you have the right to appeal.

For further information on what you should do if you want to appeal against our decision, read section 15.

9.6 Tell us about business changes

You must notify us of any changes to the core detail on your certificate of registration, for example, a change of address. If the legal status of your business or company changes, for example, a sole proprietor becomes a partnership, the new legal entity must apply in its own right. We will not automatically approve the new applicant. Where registration is no longer required you must advise us in order that we may cancel your approval (read paragraph 9.10).

You should also tell us when there are significant changes to your corporate structure affecting the day to day running of the business, for example a change of directors.

You must advise the EPT in writing within 7 days of the change taking effect. They’ll either provide you with a new certificate or an amendment to your current one, depending on the change.

You must destroy the previous certificate as soon as you receive the replacement certificate.

Failure to advise us of any changes may result in the revocation of your approval.

9.7 Categories of excise goods you want to trade in

On the application form you’ll need to indicate what categories of excise goods you want to send or receive. You must demonstrate a business need for each category of goods you want to import or export.

Your registration certificate will show which categories you are authorised to send or receive.

9.8 Conditions to approval

There are standard conditions that must be complied with to remain approved as a registered commercial importer, a certified consignee, a certified consignor or tax representative. You must:

• continue to meet the registered commercial importer, certified consignee, certified Consignor or tax representative requirements

• follow all the procedures set out in this Notice, including the application of appropriate due diligence checks (read section 19)

All registered commercial importers, certified consignees, certified consignors and tax representatives must comply with the conditions and restrictions detailed in this notice. In addition, HMRC may apply specific conditions to your approval, which we will list on your certificate of registration.

For information on what you should do if you disagree with any conditions we impose, read section 15.

9.9 Additional conditions to your approval

We may apply specific conditions to your approval, which we will list on your certificate of registration.

For information on what you should do if you want to appeal against this decision, read section 15.

9.10 When we can revoke or vary the terms of your approval

We can revoke or vary the terms of your approval immediately at any time for reasonable cause. For example, where appropriate due diligence checks are not being carried out.

If we revoke your approval, we will inform you in writing giving the reasons for our action.

You must destroy your certificate of registration the day either your approval ceases or you receive your replacement certificate.

For information on what you should do if you want to appeal against this decision, read section 15.

9.11 How to cancel approval

If you want to cancel your approval you must write to the EPT at least 30 days before the date on which you want to cancel it. HMRC will not normally cancel an approval until any outstanding duty has been paid and all HM4 forms issued to you accounted for.

We will inform you in writing that your approval has been cancelled. On the date of cancellation you must destroy your certificate of registration.

You’ll remain liable for any unpaid duty on goods imported by you whilst you were approved.

10. Accounting for duty using deferment arrangements

10.1 Deferment arrangements to account for duty

Anyone approved as a registered commercial importer, a certified consignee or a tax representative in Northern Ireland can use deferment arrangements to account for the UK duty on duty-paid goods they receive. Anyone using the standard duty-paid scheme prior to 13 February 2023, or receiving goods as a temporary certified consignee after that date, may not defer the duty, but must secure it before the goods are dispatched, as described in paragraph 4.6.

Any deferment account used to account for registered commercial importer, certified consignee or tax representative transactions must have a guarantee in place which covers 100 % of the total duty liability.

10.2 Applying for a duty deferment account

Find more information about how to check which type of account to apply for to defer duty payments when you import goods.

10.3 How to get authorisation to use another person’s deferment account

If you are a registered commercial importer or a certified consignee, you must get written authority, on form HM8, from the person whose duty deferment account you want to use.

You must send the completed form to the duty-paid movements team. Once they’ve received this form, they’ll notify you of the date from which you may use the third party deferment account.

You should get confirmation from the duty deferment account holder, that the duty deferment guarantee level is sufficient to cover the duty for the period of use. A separate form must be completed and sent to us for each third party deferment account you want to use.

If you are a tax representative, you may not use another person’s deferment account so must have your own deferment account in place.

10.4 If your duty deferment account number changes

You must tell HMRC if your duty deferment account number changes.

10.5 How to account for the duty on consignments received

At the end of each calendar month accounting period you must calculate the duty due for each tax type and complete the relevant return form with this information.

For registered commercial importers and certified consignees, this is form HM2 and for tax representatives it is form HM10.

If you are a registered commercial importer or a certified consignee using other people’s deferment accounts, a separate return must be used for each deferment account you intend duty to be paid through.

Each return must include all goods on which the duty is being paid using that deferment account. If you are authorised as either a registered commercial importer or a certified consignee and a tax representative you must use separate returns for each scheme.

Your return (or returns) must be completed and delivered to the duty-paid movements team within 4 consecutive working days (3 if a non-business day intervenes) after the end of the accounting period.

HMRC may allow you to submit plain paper returns as long as they contain the same information as the official return. If you want to submit plain paper returns you should send an example of your proposed document to the duty-paid movements team so they can consider your proposal.

10.6 Time limit to how much duty you can declare in each period

You must declare all duty due within each accounting period, so there is no limit to how much you can declare on each return. However, due to Bacs payment scheme restrictions HMRC can no longer collect direct debits in excess of £20 million. If you have a payment to make which exceeds £20 million, you should make arrangements to pay us, on the due date, by an alternative payment method such as CHAPS.

10.7 The rate to use

For registered commercial importers and certified consignees, duty is due on the goods at the rates in force at the time when the goods are received at their registered address.

For tax representatives, duty is due on the goods at the rates in force at the time that the goods are imported. However, if you do not know the time of importation, you may use the rates in force at the time of dispatch.

You can find the current duty rates in the rates and allowances section on GOV.UK.

10.8 If the duty rate changes during an accounting period

When you are completing your returns, you should check that you are using the correct rate of duty in force at the duty point.

10.9 Your accounting period

You must use calendar monthly accounting periods.

10.10 If you fail to submit returns on time

If you fail to submit your returns in time, HMRC may:

• impose civil penalties

• revoke your approval

If you disagree with our actions, you have the right to appeal. For further information on what you should do if you want to appeal, read section 15.

10.11 Nil returns

Yes. You must submit a return for accounting periods in which your duty liability is ‘nil’.

10.12 If you find errors in any accounting period

For all errors on returns submitted, you must make the necessary adjustments clearly in your records by tax type for the current accounting period in a way which makes it easy for us to check. You must draw attention to the adjustment by ticking the relevant box on your next return.

For errors amounting to a total net duty of £2,000 or more, you must also inform the duty-paid movements team in writing as soon as the errors are found.

These procedures do not apply where HMRC has begun to examine your accounts for the periods in which the errors were made. Nor do they cover any case where you are aware that an irregularity has occurred which involves a breach of the law.

10.13 If you’ve overpaid

If you’ve overpaid duty to us, those sums must usually be offset against the same tax type code on subsequent declarations made using the same deferment account.

However, if you can justify a request for direct repayment you should complete form HM6 and submit it to the duty-paid movements team. HMRC will accept such requests only if we are satisfied that you cannot make the adjustment through your normal systems, for example, if you have an unusually high duty liability for a particular tax type in one particular accounting period. We will only repay the holder of the deferment account which was originally debited.

10.14 If we find errors

If we discover errors we will tell you what you must do. We will also tell you if we decide to impose sanctions.

10.15 How to pay

HMRC will check your return and debit the appropriate sums from the relevant deferment account on the next ‘payment day’.

The payment day for registered commercial importer, certified consignee and tax representative transactions is the 15th of each month following each accounting period (except for beer which is the 25th of each month).

If the payment date falls on a non-banking day (when banks are closed) the payment date is:

• the last banking day before the 25th of the month for beer

• the first banking day after the 15th of the month for all other goods

10.16 Statements

Seven days before the payment day we will send each deferment account holder a statement showing the amount being debited.

10.17 Queries about your deferment holder’s statement

If you identify a discrepancy in the statement you should check your records thoroughly and establish if it relates to registered commercial importer, certified consignee or tax representative transactions.

If it does, you should contact the duty-paid movements team who will advise on the appropriate action to be taken.

11. Certified trader schemes

11.1 General information

From 13 February 2023, the process for moving excise duty-paid goods between EU member states changed from a paper-based system (under the cover of a SAAD) to an electronic based system using the Excise Movement and Control System (EMCS) (under the cover of an electronic Simplified Administrative Document (eSAD)).

This process also applies to duty-paid goods moving between Northern Ireland and the EU. It is very similar to the process used for moving excise goods under duty-suspension across EU member states which already uses EMCS.

For this to happen, new types of excise traders were introduced. The registered commercial importer and unregistered commercial importer schemes were replaced, from 13 February 2023, by new trader types — a certified consignee and a temporary certified consignee respectively.

In addition, the new process also introduced 2 additional trader types for dispatching duty-paid goods — a certified consignor and a temporary certified consignor. From 13 February 2023, all duty-paid movements between Northern Ireland and EU must be from a certified consignor to a certified consignee or their temporary versions.

The process for distance selling, set out in section 12 of this notice, was not affected and remains unchanged.

11.2 The main differences between the Commercial Importer and certified trader schemes

Most of the processes are the same, including the accounting and approval process read section 9. However, there are some differences:

• anyone wishing to receive EU duty-paid goods and pay the duty upfront on a consignment-by-consignment basis will now need to gain an approval as a temporary certified consignee before they can do so

• anyone wishing to dispatch duty-paid excise goods to an EU member state will need to gain an approval as a certified consignor before they can do so

• all duty-paid movements will no longer be able to travel under cover of a paper SAAD — read section 11.4 for the new movement requirements

Once you have been approved or, in the case of temporary approvals, once we authorise your individual movement, you will be given an excise ID. This will be recorded on the System for the Exchange of Excise Data (SEED), which is an EU wide register of all approved excise traders.

This will allow your EU supplier, or customer, to verify that you hold the appropriate approval to send or receive duty-paid excise goods.

11.3 Main differences between continuous and temporary certified trader approvals

Both types require you to obtain approval and then allow you to either send or receive duty-paid excise goods. However, there are differences in how movements are authorised and UK excise duty is accounted for — you will need to consider which one works best for your business.

You may also find that you need an approval as both a certified consignor and certified consignee. For example, if you usually receive duty-paid goods from the EU but for some reason you need to return these goods to your original supplier, you may also require a certified consignor approval to do this.

Equally, if you usually supply goods to the EU, you may need to hold an approval as a certified consignee in order for your customers to return any goods to you.

Certified consignees

For those wanting to receive duty-paid goods from the EU, you can choose between a certified consignee or a temporary certified consignee approval.

Certified consignees receive a continuous approval which allows them to request goods from an EU certified consignor at any time, without need for further authorisation from HMRC.

Under this scheme, you will need to submit a completed HM4 form to the duty-paid movements team for each consignment, but you do not need to wait for a response before arranging a delivery. You must account for the UK excise duty on the goods you receive using deferment arrangements. This requires you to have (or have permission to use) a suitable deferment account and to submit monthly returns.

For more information on this process read section 10.

Temporary certified consignees do not need to have a deferment account or submit monthly returns. Instead, they must secure the UK excise duty on a consignment-by-consignment basis.

To do this, they must submit details of each individual consignment to HMRC by completing a HM4 form. This must be done before the goods are dispatched and must be accompanied by payment of the UK excise duty on those goods. Goods must only be dispatched once the HM4 form has been returned to you, endorsed with the unique excise ID for that movement.

Certified consignors

For businesses wishing to dispatch duty-paid goods to EU certified consignees, there is no requirement to account for UK excise duty as the goods you are dispatching should already be UK duty-paid.

You can choose to apply either for continuous approval to dispatch goods as a certified consignor or to request an authorisation from HMRC for individual movements before they are dispatched as a temporary certified consignee.

If you are a certified consignee and wish to return goods to the EU certified consignor, after you have already receipted the movement, you will also require an approval as a certified consignor to do so.

If you do not wish to apply for an approval yourself, you may be able to find a business who is approved as the relevant Northern Ireland certified trader type to move the goods on your behalf. HMRC does not provide a list of these businesses.

These schemes are designed for use by commercial businesses. However, should a private individual need to send or receive duty-paid goods between Northern Ireland and the EU for a commercial purpose, for example a one-off sale of wine from a personal wine cellar, then they will also need to use these schemes. Private individuals can only be granted an approval as a temporary certified trader.

To apply for the necessary approval, you must complete form HM3. For further information on the approvals process, including how long it can take to receive a decision, read section 8.

11.4 Movement requirements

11.4.1 This section (11.4.1) has the force of law under regulations 80B(1), 80C(1) and 80D(1) of the Excise Duties (Northern Ireland Miscellaneous Modifications and Amendments) (EU Exit) Regulations 2020 (“NIMMA”), as inserted by paragraph 39 of Schedule 2 to the Excise Duties and Value Added Tax (Northern Ireland) (Miscellaneous Modifications and Amendments) Regulations 2023.

For the purposes of regulations 80B(1)(a), 80C(1) and 80D(1)(a) of NIMMA, the date specified is 31 July 2024.

For the purposes of regulations 80B(1)(b) and 80D(1)(b) of NIMMA, the date specified is 1 August 2024.

11.4.2 From 13 February 2023, duty-paid movements should start with the creation of an eSAD on EMCS. However, UK EMCS was not updated in time and alternative (‘transitional’) arrangements currently apply. The effect of 11.4.1 is to extend these transitional arrangements.

For UK certified traders who need to start a movement, or confirm the receipt of the goods, this means following the fallback procedures which apply when EMCS is unavailable.

If starting a movement for example, instead of creating an eSAD on EMCS, you will need to produce a paper Fallback Accompanying Document (FAD), which must accompany the goods throughout the journey. The FAD will identify the consignment as a legitimate fallback movement of duty-paid goods.

For certified consignees (including their temporary version) receiving duty-paid goods from the EU, they will need to confirm receipt of the goods by completing a fallback report of receipt, noting any shortages or excesses.

This fallback report of receipt will be sent to you by the EMCS Helpdesk with details of the eSAD raised by the consignor in the member state of dispatch. The completed document should be submitted back to HMRC to close the movement.

In all other respects, these documents must contain the same information and be notified to HMRC in the same way as the existing fallback arrangements for duty-suspended movements.

For more information on EMCS and fallback, you should read sections 2 and 3 of Receive goods into and remove goods from an excise warehouse (Excise Notice 197).

From 13 February 2023, not only does the excise duty in the country of destination need to be paid but a movement guarantee is also required.

This is needed to cover the potential risk of goods not arriving at their destination. If goods do not make it to their final destination, then it is generally the person who provided the movement guarantee that is liable to pay any excise duty that may become due in the country where the goods went missing.

Under EU law, the certified consignee is required to provide this guarantee, unless the EU member state of destination allows for other people connected to the movement to provide it.

In relation to goods arriving in Northern Ireland, we have chosen to expand the categories of people who can provide the movement guarantee for a specific movement so that it may be provided by one of the following:

• the certified consignee

• the certified consignor

• the owner of the goods

• the transporter for the movement

If you are dispatching goods to an EU certified consignee, you will simply need to make sure that there is a movement guarantee in place before you dispatch the goods. This movement guarantee must be provided by someone who is allowed to do so according to the rules in the EU member state of destination.

If you wish to provide the movement guarantee for such movements in your role as the certified consignor, you will need to make sure that the EU member state of destination allows you to do so.

For more information about how to apply for a movement guarantee and how the level of guarantee is calculated, read section 10 of Receive goods into and remove goods from an excise warehouse (Excise Notice 197).

11.5 How to receive duty-paid goods as a certified consignee

If you wish to regularly import duty-paid goods into Northern Ireland from an EU member state on or after 13 February 2023, you must be approved as a certified consignee.

Alternatively, if you wish to only do so occasionally, and pay the UK duty on a consignment-by-consignment basis (in a similar way to the UCI scheme), you must obtain an approval as a temporary certified consignee.

If we grant your approval, we will send you a registration certificate which will include your excise ID. For certified consignees, this number can be provided to an EU certified consignor in order for them to send (consign) duty-paid goods to you.

If you hold an approval as a temporary certified consignee, then this only proves that you have been authorised to use the scheme. You will still need to submit a completed HM4 form, along with payment of the UK duty, for each consignment that you want to receive.

The endorsed HM4 form that we will return to you, will include an excise ID unique to that individual movement — this excise ID is the one that you should provide to the EU certified consignor for them to verify your approval and dispatch the consignment to you.

You should check that your chosen supplier is approved as a certified consignor in their country, and therefore will be able to legitimately send you EU duty-paid goods. In most cases, you can do this by asking for their certified consignor excise ID, which you can then verify by either:

• looking at SEED on the European Commission website

• contacting our National Verification Centre (NVC)

However, this may not be possible if your supplier is using the temporary certified consignor scheme as they may not yet have their excise ID. If this happens you will need to use alternative evidence to satisfy yourself that your supplier can legally supply those goods.

You will also need to make sure that a movement guarantee is in place for the movement. If you do not wish to provide the movement guarantee yourself you will need to arrange for it to be provided by one of the other persons who can do so (read section 11.4). Unless it is being provided by the EU certified consignor, you will need to provide details of the movement guarantee (and the person providing it) to them before the goods can be dispatched.

Providing EMCS in the EU member state of dispatch has been updated for the new process, the EU certified consignor will start the movement electronically by raising an electronic Simplified Administrative Document (eSAD) using your certified trader details for the destination of the goods. This will generate an Administrative Reference Code (ARC) which is unique to that movement and must be presented upon request during the journey.

The UK EMCS Helpdesk will receive a copy of the eSAD which contains details of the consignment and HMRC will email it to you.

11.6 How to close a movement as a certified consignee

Once you have received the consignment, you must make sure that the quantities of goods delivered matches those declared on the eSAD and make a note of any discrepancies in your records.

As EMCS will not be available for you to submit an electronic report of receipt, you will need to complete a fallback report of receipt.

A fallback report of receipt template form will be sent to you at the same time as we forward you the eSAD. Where there is no eSAD because the goods have been dispatched under fallback arrangements, you may need to contact the EMCS Helpdesk to obtain a copy of this template.

The fallback report of receipt must be completed and returned to the duty-paid movements team without delay, as the movement will remain open on EMCS until the required information is received by the consignor. This should include details of any shortages or excesses.

On receipt of a fully completed form, HMRC will forward it on to the authorities in the EU member state of dispatch for them to close the movement on EMCS. The consignor should receive a message through EMCS confirming that the movement has been manually closed.

If EMCS is unavailable at the time the goods are dispatched by the EU certified consignor, they will travel under fallback arrangements, which require the goods to be accompanied by a FAD. This document should contain the same information as the eSAD.

If goods arrive without either an ARC or a FAD, you must inform the duty-paid movements team immediately.

You should check the goods carefully before submitting your fallback report of receipt. If you decide that you want to return the goods after you have submitted the fallback report of receipt, this will be a new movement. In this situation, you will need to hold an approval as a certified consignor to send those goods back to your supplier.

11.7 How to start a movement as a certified consignor

If you wish to regularly send duty-paid goods from Northern Ireland to an EU member state on or after 13 February 2023, you must be approved as a certified consignor. Alternatively, if you wish to only do so occasionally, you may choose to obtain an approval as a temporary certified consignor.

If we approve you, we will send you a registration certificate. This will include your excise ID. For certified consignors, this number can be provided to an EU certified consignee for them to confirm that you are approved to supply duty-paid goods to them.

If you hold an approval as a temporary certified consignor, then this only proves that you have been authorised to use the scheme.

You will still need to submit a completed Notification of Movement starting in Fallback (NoMF) form for each consignment that you want to dispatch.

If you are approved as a Temporary Certified Consignor, the endorsed NoMF that we will return to you will include an excise ID unique to that individual movement — this excise ID is the one that you should provide to the EU certified consignee for them to verify your approval.

The EU certified consignee in the member state of destination should also provide you with their own excise ID. You need to verify that the certified consignee excise ID provided is valid and approved to receive the goods which you intend to send to them. You can do this by either:

• looking at SEED on the European Commission website

• contacting our National Verification Centre (NVC)

As EMCS will not be available to record the movement, the consignment needs to be dispatched under fallback arrangements. You must submit a Notification of Movement starting in Fallback (NoMF) form to HMRC before the goods are dispatched.

A copy of the FAD must be provided to the person transporting the goods so that it can accompany the goods throughout their journey. You must also keep a copy for your records.

When the consignee receives the goods, they may provide a copy of the FAD to the authorities in their own member state and will complete a report of receipt which will be forwarded to HMRC to notify receipt of the goods.

Before the goods leave your premises, you must complete the FAD.

As a Certified Consignor or Temporary Certified Consignor, you must also complete the Notification of Movement starting in Fallback (NoMF) form and email it to emcs.helpdesk@hmrc.gov.uk to notify HMRC that you’re dispatching goods using fallback procedures.

If you’re a Certified Consignor, the email subject title must be in the format ‘Consignor Excise ID — Local Reference Number for the movement — ‘DP FAD’.

If you’re a Temporary Certified Consignor, the email subject title must be in the format ‘Temporary Certified Consignor reference — Local Reference Number for the movement — ‘DP FAD’.

The goods can now be dispatched.

11.8 How to change destination of the goods

Once a duty-paid movement has started, changes of destination are very limited. You may reconsign the goods:

• to the same certified consignee but a different delivery address — this address must be in the same EU member state

• back to yourself, for example where the EU certified consignee informs you that they no longer want the goods

You can only change the destination while the movement is still live — if the certified consignee has submitted a fallback report of receipt, this ends the movement and no change of destination can take place. Your customer would instead have to start a new movement to send the goods back to you.

As EMCS is not available to submit the change of destination message, you must submit a fallback change of destination (FCoD). This must be cross-referenced to the original FAD for the movement by making sure that the LRN you assigned to the FAD is also shown in the appropriate place on the FCoD.

Before you change the destination of the goods you must complete the fallback change of destination form and 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 — Local Reference Number for a movement that began and is still moving under fallback procedures — DP COD’.

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 consignee of the change in delivery address, where this discussion has not already taken place.

You should also tell the transporter to make a note on the FAD 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 you want to reconsign the goods to a different customer, you must first bring the goods back to the original address of dispatch and close the movement by submitting a fallback report of receipt yourself.

You will then need to create a new FAD to consign the goods to the new customer before dispatching them to the new delivery address. If you are a temporary certified consignor you will need to complete a new Notification of Movement starting in Fallback (NoMF) form to obtain a new excise ID before this can happen.

11.9 How to close a movement as a certified consignor

Once the goods have been received, the EU certified consignee will complete and provide a fallback report of receipt to the authorities in the member state of destination. This will be sent to HMRC and in turn, we may forward it to you for your records. This will close the movement and discharge the movement guarantee.

You may be entitled to claim reimbursement of the UK excise duty through the excise duty drawback scheme. You may need to provide the fallback report of receipt as part of your evidence to support a drawback claim.

For further information on excise duty drawback read Excise duty drawback (Excise Notice 207).

12. Distance selling

12.1 What distance selling is

For the purposes of this notice, distance selling is the sale of excise goods by a vendor in an EU member state to a private individual in Northern Ireland. For example, this could be sales over the internet.

It does not apply to sales to Northern Ireland from outside the EU. For information on the rules regarding non-EU sales, read tax and customs duties for goods sent from abroad.

12.2 Requirements for distance sales

To account for the UK duty on goods sold through a distance sales transaction, you must be authorised as a tax representative in Northern Ireland (read section 13).

12.3 Buying goods from a member state, for example, over the internet

The vendor in the member state of dispatch is responsible for ensuring that the UK duty is paid before they send the goods. However, the vendor is likely to pass on this cost in the purchase price. If the vendor does not make sure that the UK duty is paid, the goods are liable to forfeiture on arrival in Northern Ireland.

12.4 How to account for the Northern Ireland duty as a vendor in an EU member state

You must appoint a tax representative in Northern Ireland to account for the duty on your behalf (read section 13). The UK duty must be secured before the goods are dispatched; otherwise the goods are liable to forfeiture on arrival in the Northern Ireland.

12.5 How to tell that UK duty has been paid, as a purchaser

You should expect the price you pay to reflect the payment of UK duty — if the price is very low, it is likely that the vendor does not intend to pay the UK duty. In addition, some websites openly advertise that they’ll misdeclare goods, to try to avoid paying the UK duty. In both of these circumstances, the goods would be liable to forfeiture on arrival in Northern Ireland, so you should be very careful about where you purchase your goods from.

12.6 If the UK duty has not been paid before the goods are dispatched

There is no facility to pay the UK duty due on goods sent from an EU member state when they arrive in the Northern Ireland. If the duty has not been paid before the goods are dispatched, the goods are liable to forfeiture on arrival in Northern Ireland.

13. Tax representatives

13.1 What a tax representative is

A tax representative, legally defined in Northern Ireland HMDP as a Northern Ireland tax representative, is approved and authorised to account for excise duty on distance sales on behalf of vendors in EU member states.

13.2 How to become a Northern Ireland tax representative

You must apply to become a Northern Ireland tax representative by completing Application to register as a tax representative (HM9). You must provide all the information requested on the form. Further information on the registration and approval process can be found in section 9.

13.3 How to account for UK duty as a tax representative

As a tax representative, you should account for the duty using deferment arrangements, therefore you should make sure that you have a deferment account in place before you apply for authorisation as a tax representative. You may not use someone else’s deferment account to account for the duty on distance sales. For more information on accounting for duty using deferment arrangements, read section 10.

13.4 You can only be a tax representative if you are established in Northern Ireland

To become a tax representative, you must be established in Northern Ireland.

13.5 Keep a separate duty account and records for any consignments for which you act as a tax representative

Your duty account should easily identify each distance sale that you accounted for as a tax representative from any other Northern Ireland excise transactions you may have been responsible for. For further information on the type of information that you should record in your duty account, read paragraph 7.4.

14. UK duty stamps

14.1 Goods that must have a stamp

All bottles and other retail containers of spirits, and wine or other fermented products (previously called made-wine), with a strength of 30% alcohol by volume or more, with a capacity of 35cl or more, are required to have a duty stamp when removed to home use in the UK.

14.2 Different types of duty stamp

The duty stamp comes in 2 formats:

• a product specific stamp (known as a type A or free-standing stamp) which must be attached directly to the bottle

• a label stamp (referred to in the law as a type B stamp), which is incorporated into bottle labels and printed by the industry’s own label printers

If you want label stamps you must be authorised as a registered commercial importer, a certified consignee or a tax representative.

14.3 When the stamps must be affixed

If you are receiving unstamped products from the EU through either the standard or registered commercial importer schemes or as a certified consignee (including the temporary version), you must affix stamps within 14 days of the arrival of your goods in Northern Ireland. Alternatively, you can receive goods which already bear either a free-standing or label stamp which has been affixed by a person in a member state.

If you are a tax representative, any product you receive must be stamped before the goods arrive in Northern Ireland.

If you are required to and fail to affix stamps within the correct time period, the goods are liable to forfeiture. You may also be liable, on summary conviction, to a fine of up to £5,000, or a civil penalty.

14.4 How to get duty stamps

Unless you are approved as a registered commercial importer, a certified consignee or a tax representative, you should request duty stamps from our Commercial Importer team by completing the duty stamps declaration part of form HM4.

HMRC will then provide you with free-standing duty stamps for your consignment at the same time as they return your completed form HM4, endorsed with your reference number. We will only supply sufficient stamps for the consignment you are importing.

If you’ve been approved by HMRC as a registered commercial importer, a certified consignee or a tax representative, you must apply to become registered to get duty stamps. Once registered, you may acquire free-standing stamps or the design specification for the label stamp.

If you are a tax representative importing distance sales the stamps must be affixed before the goods are dispatched to Northern Ireland.

You’ll find more details on the requirements for registration and how to get stamps in Excise Notice DS5: UK Duty Stamps Scheme.

14.5 Information you’ll need to give on your duty stamp declaration

You’ll need to provide the following information:

• your name and address

• the delivery address for the stamps (this must be the address where you intend affixing the stamps)

• the type of product you are importing, that is, whisky, gin, vodka, rum, brandy, or other product and its alcoholic strength

• the number of bottles you are importing and their size

You must also sign a declaration confirming that the goods will not already bear duty stamps when they’re imported.

14.6 If you receive goods that already have a stamp

If the goods you receive already have duty stamps, and you’ve received free-standing stamps from the duty-paid movements team for that consignment, you must return them to HMRC. Failure to do so may render you liable to a civil penalty for each stamp that you fail to return.

14.7 If you do not have enough free-standing stamps

If you receive more goods than you ordered, you are required to notify the duty-paid movements team. When they’ve received payment of the additional duty due, they’ll provide sufficient additional stamps.

You should note that, where this happens, stamps must still be affixed to the goods within 14 days of their arrival in Northern Ireland. It is therefore in your interests to make sure that HMRC receives payment of any additional duty as soon as possible.

14.8 If your stamps are lost, stolen or damaged

In these circumstances you should inform the duty-paid movements team by the end of the business day following the day on which the loss or the discovery of the loss occurred. Depending on the circumstances, they’ll then provide you with replacement stamps.

14.9 If you do not have the correct stamps for the goods you receive

In these circumstances you should contact the duty-paid movements team. They’ll then advise you of the correct action to take.

Normally HMRC will require you to return the incorrect stamps and reissue you with appropriate replacements. However, you must also confirm that the alcohol by volume (ABV) and volume of the product are identical to the detail originally notified to us. If they’re not, then you must also arrange for any outstanding duties to be paid before we will provide replacement stamps.

14.10 Further information

You can find more information in Excise Notice DS5: UK Duty Stamps Scheme.

15. General information

15.1 HMRC visits

There are times when we will visit businesses and premises.

We may visit:

• your business, from time to time, to check your business records, systems and premises, check the details of your application and give you guidance

• the delivery address shown on form HM4, to check the consignment

• your transporter, to verify the movement details shown on the endorsed HM4

When we visit you must do all of the following:

• admit us to your premises

• produce records for us to check

• allow us to inspect any stock

Alternatively, there may be occasions when we ask you to come to one of our offices to discuss your imports.

15.2 Appointments

We will normally make an appointment. Occasionally, visits are made without an appointment, but the attending officer will give the reason for the unannounced visit.

We aim to carry out our visits as quickly and efficiently as possible. You can help by providing the relevant records and helping us understand them, especially if there is anything special or unusual about your particular business.

15.3 Safety of HMRC officers

While our officers are on your premises you must make sure their safety at all times.

15.4 What to expect

We will:

• identify ourselves by name on arrival, and produce an identity card

• explain the main purpose of the visit

• be polite and considerate and deal with your tax affairs confidentially

• keep claims on your and your staff’s time to a minimum

• where possible, try to resolve matters during the visit

15.5 How you can help

You can help by:

• advising us as soon as possible about the reasons for any significant changes in the tax or duties you’ve declared or the systems used to calculate the declarations — you should do this by contacting our duty-paid movements team

• keeping your records, declarations and payments up to date

• providing us with the information and explanations we request

• asking us if you are unsure of any matter connected with the duty or tax — we may not look at all aspects of your records and business, so you cannot assume that you are accounting for everything correctly just because no errors are found, so it is in your own interest to ask if you are unsure

• helping us to understand your business and records

• replying to enquiries within the specified time

• quoting your reference number when you contact us

15.6 If you disagree with a decision

If you disagree with a decision, discuss it first with the visiting officer.

If you still disagree, then you should read the review and appeals process in section 16.

16. Review and appeals process

16.1 What if I disagree with an HMRC decision

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 duty-paid movements

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

• send new information or arguments to the officer you’ve 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.

16.2 Time limits

If you want HMRC 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 to tell you this and, you then have 30 days from the date of that letter to ask the tribunal to hear your case.

16.3 What to include in your request for a review

Your request should set out clearly the full details of your case, the reasons why you disagree with HMRC and provide any supporting documentation. You should also state what result you expect from our review.

16.4 If you do not want a 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.

16.5 More information

Find out more information about:

• how to get a review of an HMRC decision

• what to do if you disagree with an HMRC decision

There’s also information about how to appeal to the Tribunals Service on GOV.UK.

17. Contact us

Application or registration queries

Contact the Excise Processing Teams about an application you’ve submitted or if you need to tell us about any changes.

General enquiries

Contact excise enquiries helpline if you have a general query.

Duty-paid movements team

Contact the duty-paid movements team to notify us of any:

• consignments of excise goods

• changes to information already given about a consignment

HMRC Duty-paid Movements Team
HMRC payments REDS and NOIC
HM Revenue and Customs
BX9 1XT

Telephone: 03000 529510

18. Examples of duty calculation

The way you work out Alcohol Duty has changed. You can find examples of duty calculation when you work out how much Alcohol Duty you need to pay.

19. The due diligence condition

19.1 What due diligence is

Due diligence is the appropriate reasonable care a company exercises when entering into business relations or contracts with other companies, and how it responds in a deliberate reflexive manner to trading risks identified.

19.2 Why is a due diligence condition required

Without effective safeguards in place, there are considerable risks to all businesses along alcohol supply chains of becoming implicated in illicit trading.

This condition requires that all excise registered businesses operating in the alcohol sector consider the risk of excise duty evasion as well as any commercial and other risks when they’re trading. Doing so will help to drive illicit trading out of alcohol supply chains, and reduce the risk to businesses of financial liabilities associated with goods on which duty has been evaded.

19.3 What is expected of you

It is a condition of your approval as a registered commercial importer, a certified consignee or consignor (including their temporary version) or tax representative that you must:

• objectively assess the risks of alcohol duty fraud within the supply chains in which you operate
• put in place reasonable and proportionate checks, in your day to day trading, to identify transactions that may lead to fraud or involve goods on which duty may have been evaded
• have procedures in place to take timely and effective mitigating action where a risk of fraud is identified
• document the checks you intend to carry out and have appropriate management governance in place to make sure that these are, and continue to be, carried out as intended

19.4 How to assess the risks in my supply chains

The fraud risks within a supply chain are unique to each business, and objective assessment of the likelihood of your trading activities contributing to fraud is an essential first step to developing effective due diligence procedures. You’ll need to consider the full range of trading relationships you’ve established and the potential for fraud in each.

The main risks within the alcohol sector include:

• involvement in the supply of goods for fraud

• receiving goods that have been smuggled or diverted into Northern Ireland

• inadvertently facilitating fraud by providing import or warehousing services

A key feature of the smuggling or diversion of alcohol to the Northern Ireland market is the ability to source product either where the excise duty has been suspended or it has been refunded under drawback provisions. To assess your exposure to this risk you’ll need to objectively assess if there is potential for duty evasion resulting from your trading activity. You’ll need to know who you are selling to and where the goods are destined for and understand the market for these products. Without this, there is a risk of supplying goods directly or through a third party into illicit supply chains.

Import and warehousing procedures are often exploited to provide cover for the illicit movement of goods. Fraudsters will seek to distribute duty evaded goods as well as counterfeit alcohol into legitimate retail supply chains. To assess your exposure to this risk you’ll need to objectively consider whether the supply chain and trading activity is credible which includes knowing who you source goods from and provide a service to.

High level indicators of risk include goods being received from unusually complex or apparently uneconomic supply routes, for example, regular supplies of UK produced goods that have been shipped out to a member state and then re-imported. If you are sourcing duty-paid goods you’ll also need to consider the credibility of suppliers and the level of evidence you can get to demonstrate the provenance and duty status of goods.

Paragraph 19.9 of this notice provides further detail on risk indicators.

19.5 Checks to carry out

Once you’ve established the main risks of fraud you may be exposed to, your regular checks during trading should be of a type and level sufficient to establish the integrity of the excise transactions and supply chains you are trading in. This level needs to be reasonable and proportionate to the risk.

Depending on the nature of your business and complexity of your transactions, checks will need to be individually tailored. In particular, they must be sufficiently sensitive, yet robust enough, to pick up potential fraud risks. These checks should provide protection from the threat of fraud or you becoming inadvertently involved in fraudulent activity.

As a general rule ‘FITTED’ checks should normally focus on:

• financial health of the company you intend trading with

• identity of the business you intend trading with

• terms of any contracts, payment and credit agreements

• transport details of the movement of the goods involved whether or not you are directly involved in this

• existence or provenance of goods — where goods are said to be duty-paid you should normally seek sufficient detail to satisfy yourself of the status of the goods

• the Deal, understanding the nature of the transaction itself, including:

  • how the cost of the goods is built up, for example, whether it includes appropriate taxes, transport etc

  • why is it being offered

  • whether it is too good to be true

  • how the deal compares to the market generally

Paragraph 19.10 of this notice provides more examples.

19.6 How to respond to a fraud risk in your supply chains

It is expected that your due diligence procedures will provide effective control over the risks of fraud within your supply chains. Where your checks indicated real concerns, we would normally expect aspects of your supply chain to be changed to address this, for example, the supplier or the destination of the goods. However, a decision of whether or not to trade with another party remains a commercial decision for your business to take.

If your checks lead you to suspect duty fraud you should also inform our Customs hotline.

19.7 HMRC reviews

As part of our enforcement and general audit programmes, we will consider whether or not the steps you’ve taken to embed anti-fraud due diligence into your trading activity are sufficient and timely to address fraud risks in your supply chains. We will aim to establish whether you have objectively assessed the risks in your supply chain, and you must be able to demonstrate that you have put in place reasonable and proportionate checks and effective procedures to respond to fraud risks when they arise.

19.8 If your due diligence checks are found to be insufficient

If your due diligence procedures are considered insufficient to address fraud risks, we will carefully consider the facts of the case before taking further action, but where appropriate we will seek to support you to strengthen your procedures.

In more serious cases such as a failure to consider the risks, undertake due diligence checks or respond to clear indications of fraud, we will apply appropriate and proportionate sanctions. For serious non compliance, such as ignoring warnings or knowingly entering into high risk transactions, we may revoke excise approvals and licences.

You are also reminded that handling goods liable to excise duty held outside a duty — suspension arrangement may cause you to become liable for any excise duty due on those goods and an excise wrongdoing penalty. Any of those goods you currently hold could also be liable to forfeiture.

Paragraphs 19.9 and 19.10 of this notice provide further details on risk indicators and outline some of the checks that you may carry out to identify high risk transactions. These are not intended to be prescriptive or exhaustive.

Once you’ve established the most appropriate due diligence tests for your business, these should be used to test both new and existing transactions and supply chains linked to your business. Some checks may be more appropriate to your business than others.

19.9 Examples of due diligence risk indicators

You should be concerned about a prospective transaction where you identify one or more of the following indicators in both suppliers and customers, the presence of which may lead you to make further inquiries. This list is not exhaustive.

Financial health of the company you intend trading with

You should be concerned if:

• there is no, or poor, credit ratings but it is still able to finance substantial deals

• there are high levels of debt

• they’re buying high value goods on extended credit

• they’re a new company with little or no trading history

• there are little or no fixed assets

Identity of the business

You should be concerned if:

• there is a lack of detail about the business’ identity, for example, no address details, or HMRC approval number

• they do not appear to be on Companies House records as originally described

• they’re dealing in high value goods from short term lease accommodation or residential addresses

• there is no general visibility of the company you intend trading with, for example, they do not appear to advertise or have a website

• they’ve returned only partly completed application or trading forms

• if you are a warehousekeeper, receiving duty suspension goods on behalf of a third party who is not WOWGR registered where they would otherwise be required to be registered

Terms of contract, payment and credit agreements

You should be concerned if:

• there is an insistence on dealing in cash, especially where the deal is a high value one

• cash payments are made using money couriers

• offers of credit appear to be outside normal business practice. Payment terms are normally 21, 31 or 45 days but high-risk transactions may have short payment terms, for example, 48 hours

• you are asked to make payment to an account or person which does not appear to be linked to the seller, or other unusual payment arrangements requested by the seller. The same applies to customers

• a valid pro-forma or purchase invoice is not or will not be provided

• the circumstances of the trading arrangement seem false or contrived. For example, a supplier provides you with the details of a customer for the goods he is selling to you, or offers you a contract with no financial loss to you

Transport

The goods are to be received from an unusual source or supply route, for example, UK produced goods are sourced from another country and directly compete with those from a more direct supply route.

Existence or provenance of goods

You should be concerned if:

• the goods are claimed to be duty-paid but your supplier (or person on whose behalf you are storing the goods) cannot provide reasonable evidence of duty payment to support the status of the goods — for further detail about what constitutes evidence of duty payment refer to Excise duty drawback (Excise Notice 207)

• individuals in the company have little knowledge of your trade sector

• where samples are provided or the goods have been received:
  • for spirits there is no duty stamp in circumstances where there should be one or the duty stamp does not fluoresce (refer to guidance)
  • the goods appear counterfeit, in that, the quality of labels and or packaging is poor when compared to the genuine article
  • the supporting paperwork seems false
  • the goods are older than supporting evidence (such as documents demonstrating duty payment) suggest, for example, the best before dates indicate an earlier production date whereas documentation gives the impression you were buying newer stock
• the company has only been trading for a very short period of time but has managed to achieve a large income in that short period of time

The Deal

You should be concerned if:

• customer demand for specific brands in other countries exceeds expected levels of consumption there

• the goods are to be moved in an unusual supply route that in itself would add significant logistic costs and bring into question the economics of that trade (unless duty was to be evaded)

• supplies are offered through unsolicited emails or flyers received out of the blue

• goods are offered at incredibly low prices which seem too good to be true

• free gifts of similar or other excise goods not fully documented and in themselves would place a question over the deal as a whole

• there are other incentives such as contingency discounts which overall make the deal sound too good to be true

19.10 Examples of due diligence checks

Financial health

You should:

• obtain, undertake credit checks or other background checks on the business you intend trading with

• where a poor credit rating is identified, establish how the transactions will be funded, what security can be offered that you’ll be paid

• where credit is offered by the business, know who is providing the credit facility

• know what payment terms are offered and are they commercially viable

Identity

You should:

• check company details provided to you against other sources, for example website, letterheads, telephone directories

• ask whether your customer or supplier is a member of a relevant trade association

• get copies of certificates of incorporation, VAT registration certificates and excise registration certificates where appropriate and where a trade class is quoted on these, check whether or not it relates to the type of trade you are engaging in

• verify VAT and excise registration details with HMRC (we recommend that these checks are undertaken regularly for new trading arrangements and proportionately longer for trusted ones, unless you suspect a problem)

• if you are a warehousekeeper receiving duty-suspended goods into your warehouse, be satisfied that the owner of the goods is registered under WOWGR where required

• get signed letters of introduction on headed letter paper and references from other customers or suppliers

• insist on personal contact with a senior official of the prospective supplier and where necessary, make an initial visit to their premises — use this opportunity to confirm the identity of the person you intend doing business with and keep a record of your meeting

• establish what your customer’s or supplier’s history in the trade is and do they have evidence of this

• get the prospective customer’s or supplier’s bank details — in the case of an import or export, does the supplier or recipient share the same country of residence as their bank

• establish who you’ll be paying — is this the same company as the one you are directly dealing with

• if you are providing a service, know who will be paying for it

Terms of any contracts, payments and credit agreements

You should:

• carefully consider the terms of any contracts and credit agreements before entering into these and challenge elements which appear unusual

• know what recourse is there if the goods are not as described

• if payment is to be made to or from a third party, know if there is a sound commercial reason for this

• if payment is to be made to or from a third party, know if it is to or from an off shore account

• know if there are normal commercial arrangements in place for the financing of the goods

• where payment is made from an overseas business, know how it is to be made

• ask yourself has your supplier referred you to a customer who is willing to buy goods of the same quantity and brand as being offered by the supplier

• ask yourself if your supplier offers deals that carry no commercial risk for you, for example, no requirement to pay for goods until the payment is received

• ask yourself if the goods adequately insured

• ask yourself if high value deals are offered with no formal contractual arrangements

• where you are buying from a broker, ask yourself:
  • what overall value does this link in the supply chain add
  • is it possible to source more directly
  • how competitive is the broker’s pricing to those from a more direct route
  • how are the savings made in a longer supply chain to make it viable
• where transactions are being financed by a third party, ask yourself if this person is a regulated financial body such as a bank

Transport

You should:

• establish where the goods will be sourced from, asking yourself:
  • if this is the country of production
  • if it is not the country of production, why the goods are being routed in this way
• know who is responsible for the transport, asking yourself:
  • if the cost of the goods is inclusive of transport
  • if the cost is inclusive of transport, does this mean that the potential logistical costs make the unit price unrealistic
• make sure the details of delivery vehicles are retained and if necessary any variations to expected transport arrangements are recorded

Existence or provenance

You should check:

• how the trader has contacted you

• if the goods exist

• if you can inspect the goods before purchasing them

• if they are in good condition and not damaged

• if the quantities on offer seem credible for the type of business you intend trading with

• where goods are said to be duty-paid, seek sufficient detail to satisfy yourself that they are, this will be easier the closer you are in the supply chain to production — this point is also important where you intend holding goods on behalf of a third party

The Deal

You should consider the nature of the transaction, including:

• if it looks too good to be true

• if the demand for the type of alcohol is credible — if the demand is purportedly from abroad what is the real market (consumption) for them in that country

• if the alcohol has come from abroad but is of UK origin, how did this occur and why

• where incentives are offered, when these are taken into consideration if this makes the overall deal seem too good to be true

• why it is being offered

• if normal commercial practices have been adopted in negotiating prices

• if the price competes with that offered by competitors

• the age of the goods — if the stock is old you should seek an explanation as to its provenance

• if the price seems realistic — you should be aware of unit cost when duty and VAT values are removed

• if you are already established in a trading agreement we would also recommend that you continue to monitor correspondence and business paperwork to identify changes in those arrangements and take any follow up action as necessary

Glossary

Term	Definition
Certified consignee	A trader who, from 13 February 2023, is able to import goods into Northern Ireland which are already duty-paid in an EU member state without having to provide payment of the UK duty before the goods are dispatched. Instead, they’re authorised to defer payment of the duty using their own or someone else’s duty deferment account and make the necessary payment by submitting a return at the end of each accounting period. Security is provided by the deferment guarantee.
Certified consignor	A trader who, from 13 February 2023, is able to export goods from Northern Ireland to an EU member state which are already UK duty-paid.
Distance selling/sales	The sale of excise goods by a vendor in one EU member state to a private individual in another member state. For example, this could be sales over the internet.
Duty-paid goods	For the purposes of this notice, goods released for consumption that is, goods on which relevant duties, including excise duty, has been paid in the country of dispatch. Such goods are normally available for purchase from cash and carries, supermarkets and wholesalers in the country of dispatch.
Duty Stamp	A stamp attached to alcoholic products, with an ABV of 30% or above in bottle sizes of 35cl or above to indicate that UK duty has been or will be paid.
Established	For the purpose of this notice, you are established in Northern Ireland if you have a permanent business establishment in Northern Ireland.
Excise duty	For the purpose of this notice, an indirect tax on certain goods, for example, beer, wine, other fermented products (previously known as made-wine), cider, spirits, mineral oil, cigarettes and other tobacco products. Both UK-produced and imported goods are subject to excise duty.
Excise goods	Goods which are liable to excise duty.
Fiscal mark	In the context of this notice, a mark carried on packets of cigarettes and hand-rolling tobacco indicating that tobacco products duty has been paid.
Registered commercial importer	A trader who is able to import goods into Northern Ireland which are already duty-paid in an EU member state without having to provide payment of the UK duty before the goods are dispatched. Instead they’re authorised to defer payment of the duty using their own or someone else’s duty deferment account and make the necessary payment by submitting a return at the end of each accounting period. Security is provided by the deferment guarantee.
Released for consumption	For the purposes of this notice, ‘released for consumption’ means goods on which relevant duties, including excise duty, has been paid in the country of dispatch. Such goods are referred to as ‘duty-paid’ goods throughout this notice.
Supplier	In the context of this notice a person who supplies duty-paid excise goods.
Tariff	The short title for the Integrated Tariff of the UK which sets out information about: the valuation of goods for import duty purposes, including excise and VAT duties measures affecting the import, export and transit of goods.
Tax representative	A trader who is approved and authorised to account for excise duty on distance sales on behalf of vendors in EU member states.
Temporary certified consignee	A trader who, from 13 February 2023, is able to import goods into Northern Ireland which are already duty-paid in an EU member state. Their registration is limited to a single movement of a specified quantity of goods from a single consignor in a specified time period. They must secure the UK duty prior to the goods being dispatched.
Temporary certified consignor	A trader who, from 13 February 2023, is able to export goods from Northern Ireland to an EU member state which are already UK duty-paid. Their registration is limited to a single movement of a specified quantity of goods to a single consignee in a specified time period.
Unregistered commercial importer	A trader who uses the standard scheme to import goods into Northern Ireland which are already duty-paid in an EU member state. They must secure the UK duty prior to the goods being dispatched.

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, you can write to:

Excise policy
4th Floor East
Trinity Bridge House
2 Dearmans Place
Salford
M3 5BS

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

If you need general help with this notice or have another question contact the excise and gambling duties enquiries team.

Putting things right

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If you’re still unhappy, find out how to complain to HMRC.

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