Excise duty drawback (Excise Notice 207)

Question 1

1.  Introduction

Accepted Answer

1.1 About this notice

This notice gives information about excise duty drawback. Excise duty drawback is a refund of UK excise duty. It is made when excise goods have not been and will not be consumed in the UK (although read section 11), providing certain conditions and requirements are met.

This notice provides general information on the:

conditions and requirements of drawback
forms used when claiming drawback
process for claiming drawback
repayment of the excise duty

1.2 Who should read this notice

You must read this notice if you are a business that dispatches, exports, warehouses for export or destroys excise goods in the course of your business and you want to claim repayment of the excise duty paid on those goods.

You will find details about the necessary conditions, requirements and procedures to follow throughout this notice.

1.3 What other notices will I need?

You will need to read:

Question 2

2.  Legal background

Accepted Answer

2.1 the relevant law

The primary legal provisions that apply to this notice are:

Customs and Excise Management Act 1979 (CEMA)
Finance (No. 2) Act 1992 (F(No. 2)A 92)
Finance (No. 2) Act 2023 (F(No. 2)A 23)
Finance Act 2008 (FA 2008)
Hydrocarbon Oil Duties Act 1979 (HODA)
Sales of Goods Act 1979 (SoGA)
Tobacco Products Duty Act 1979 (TPDA)

You will find detailed requirements in the following regulations:

Beer Regulations 1993
Cider and Perry Regulations 1989
Duty Stamps Regulations 2006
Excise Goods (Drawback) Regulations 1995 (EGDR) — these regulations have been amended to allow for different drawback rules for Northern Ireland and the rest of the United Kingdom, so unless otherwise stated (or there is no difference between the versions) the version relating to Great Britain (England, Scotland and Wales) is referred to below
Excise Goods (Holding, Movement and Duty Point) Regulations 2010 (HMDP)
Hydrocarbon Oil Regulations 1973 (HCO)
Revenue Traders (Accounts and Records) Regulations 1992 (RTAR)
Tobacco Products Regulations 2001 (TPR)
Wine and Made-Wine Regulations 1989

2.2 Where to get copies of the law and regulations

You can find the law and regulations online at www.legislation.gov.uk.

2.3 How HMRC refer to the law in this notice

When we directly refer to the law in this notice we will show the standard abbreviations as shown in paragraph 2.1.

2.4 If you fail to meet your legal obligations

If you do not meet your legal obligations we can:

reduce or reject your claim (you will find more information about this in paragraph 12.1 and 12.2 in this notice)
impose specific conditions on your business and claims in accordance with Regulation 7(2) of EGDR
if your drawback claim has already been granted, cancel your claim in accordance with Regulations 13(1) and 13(2) of EGDR and assess you for the amount of duty repaid in accordance with Section 2(3A) of F(No. 2)A 92
issue you with a civil penalty in accordance with Regulations 14(1) and 14(2) of EGDR
issue you with an excise wrongdoing penalty in accordance with Section 41 of FA 2008
in the case of a criminal offence, instigate criminal court proceedings in accordance with Section 136 of CEMA which could result in seizure of the goods plus either a penalty or a term of imprisonment

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

Question 3

3.  Overview of drawback

Accepted Answer

3.1 What drawback is

Drawback is a reimbursement of UK excise duty paid to an eligible claimant, providing certain conditions and requirements are met, when eligible excise goods have not been and will not be consumed in the UK (however read section 11).

3.2 Events that can lead to a claim for drawback

Paragraph 3.1 explains that to claim drawback the UK duty paid excise goods must not be consumed in the UK. Therefore, to be eligible for drawback, UK excise duty paid goods must either be:

exported
warehoused for export (provided the goods are not alcoholic liquor goods and that they are subsequently exported from the UK within 6 months of the drawback claim)
destroyed
dispatched from a place in Northern Ireland to an EU country

3.3 How the drawback scheme works

This paragraph contains requirements that have force of law under regulation 66(b) of The Excise Goods (Holding, Movement and Duty Point) Regulations 2010. In particular this paragraph imposes additional requirements with which you must comply when dispatching goods from Northern Ireland to an EU country.

To make a claim for drawback you will need to check that you will be an eligible claimant and that your goods will be eligible goods for the purposes of a drawback claim.

You must then complete a ‘Notice of intention to claim drawback’ form (NOI) and send it to the Drawback Processing Centre (DPC).

In addition you must prepare any documentation required to accompany the goods. For example:

the Simplified Administrative Accompanying Document (SAAD) or fallback accompanying document (FAD) as described in section 6 of this notice
an export declaration as described in section 7 of this notice
a warehousing advice note when goods are to be warehoused for export as described in section 8

You must then make your goods and any accompanying documentation available for inspection and wait at least as long as the minimum period of notice in case we decide to inspect.

When the notice of intention period ends you are able to export (or dispatch, where goods leave Northern Ireland for a destination in an EU country), warehouse or destroy your goods as notified on your NOI form.

After your goods have been exported (or dispatched from Northern Ireland to an EU country), warehoused or destroyed you can then complete and submit your drawback claim form with the required supporting evidence.

Where goods are dispatched from Northern Ireland to an EU country, you must make sure you hold evidence to show that the excise duty has been paid in the country of destination (or confirmation that the goods are not liable to duty in that country) before submitting your claim.

The DPC will then process your claim and make a decision as to whether or not your claim will be paid. If your claim is successful the DPC will pay the duty due to you, normally into your bank account.

If your claim is not successful, the DPC will explain this in writing and will return your claim form and supporting evidence.

3.4 Differences to the drawback scheme for registered brewers who wish to offset the drawback on their EX46 return

This paragraph contains requirements that have force of law under regulation 7(1)(b) of the Excise Goods (Drawback) Regulations 1995. In particular this paragraph imposes requirements you must comply with as a condition of receiving drawback on goods dispatched from Northern Ireland to an EU country.

If you are a registered brewer and you want to claim drawback for goods that will be destroyed as they have become spoilt or otherwise unfit for use, read paragraph 3.7 for more information.

If you are a registered brewer and intend to claim drawback on the beer you export, you have the choice to offset the amount of duty drawback on your EX46 return rather than submit a drawback claim form and await payment from the DPC. If you choose this option the procedure for claiming drawback is different from the standard procedure outlined at paragraph 3.3.

You will need to check that you will be an eligible claimant and that your goods will be eligible goods for the purposes of a drawback claim.

You must complete the ‘Notice of intention to claim drawback’ form (NOI), ticking the box to say you are offsetting the drawback on your EX46 return and send it to the Drawback Processing Centre (DPC).

You must prepare any documentation required to accompany the movement for example the SAAD, FAD or customs export declaration. You must then make your goods and any accompanying documentation available for inspection and wait at least as long as the minimum period of notice in case we decide to inspect.

When the notice of intention period ends you are then able to dispatch, export or destroy your goods as notified on your NOI form.

Where goods are dispatched to an EU country, you must make sure you keep evidence that the excise duty has been paid in the country of destination, or confirmation that they are not liable to duty in that country.

After your goods have been exported (or in the case of Northern Ireland, dispatched to an EU country), instead of completing and sending a drawback claim form to the DPC, you simply record the amount of duty drawback in the appropriate field on your EX46 return.

You will not have to submit supporting evidence with your return, but you must keep the supporting evidence for the claim:

for your records
to make available to HMRC on request

3.5 Differences to the drawback scheme for tobacco manufacturers claiming drawback for products returned for recycling, repackaging or destruction

If you are a tobacco manufacturer and you are claiming drawback for tobacco products that have been returned to your registered store (within three years of their removal to home use) to be recycled, repackaged or destroyed, you must:

follow the guidance in Tobacco Products Duty (Excise Notice 476)
consult with your assurance officer to offset the amount of duty drawback on your TP7 return. You must not follow the guidance in this notice

However, if you are a tobacco manufacturer claiming drawback for tobacco products for reasons other than recycling, repackaging or destroying returned goods, follow the guidance in this notice to claim drawback, using the standard procedure outlined in paragraph 3.3.

3.6 Differences to the drawback scheme for traders approved for oils duty deferment who wish to offset the drawback on their HO10 return

If you are approved for oils duty deferment and you wish to offset the amount of duty drawback on your HO10 return, follow the ‘netting’ procedure described in Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179). Do not follow the guidance in this notice.

However, if you are not approved for oils duty deferment, or you do not wish to offset the amount of duty drawback on your HO10 return, follow the guidance in this notice to claim drawback using the standard procedure outlined in paragraph 3.3.

3.7 Differences to the drawback scheme for brewers, wine producers or cidermakers who wish to claim drawback for spoilt product

If you are claiming drawback for goods that will be destroyed as they have become spoilt or otherwise unfit for use you must read whichever of the following is appropriate:

To be eligible, you must be a:

registered cidermaker
licensed wine or other fermented products (previously known as made-wine) producer
registered brewer or registered holder

If you are eligible to claim drawback of excise duty under those procedures, follow those procedures and not the procedures in this notice.

However if you are not eligible under those procedures, follow the guidance in this notice to claim drawback using the standard procedure outlined in paragraph 3.3.

Question 4

4.  Main conditions and requirements

Accepted Answer

4.1 The main conditions of drawback

The main conditions of drawback are:

the goods have not been and will not be consumed in the UK (read section 11)
the person claiming drawback is an eligible claimant (read paragraph 4.4)
the excise goods are eligible goods (read paragraph 4.3)
the UK excise duty paid on the goods has not been paid more than 3 years before the event giving rise to the claim for drawback (read paragraph 3.2 for events that lead to drawback)
the correct notice of intention to claim drawback has been given (read paragraph 4.10)
in the case of goods dispatched from Northern Ireland to an EU country, that the duty due in the country of destination has been secured (to the satisfaction of the fiscal authorities in that country) and then subsequently collected (read paragraphs 6.1 and 6.4):
- that the goods have been dispatched by a certified consignor to a certified consignee (read paragraph 6.1)
- that the drawback claim documentation has been completed fully and accurately and has been submitted with the correct supporting evidence (read paragraphs 6.4, 7.4, 8.6, 9.7 and 10.4)
suitable records have been maintained to support the claim (read paragraph 4.15)

We will only pay drawback of UK excise duty if we are satisfied that all conditions and requirements in this notice and supporting law, such as EGDR, have been met.

4.2 Additional conditions that can be imposed

We can impose specific conditions on your business and claims. We will notify you of these in writing.

4.3 Definition of ‘eligible goods’ for drawback purposes

Goods are eligible goods for drawback purposes if the UK excise duty has been paid (and has not been remitted, repaid or drawn back), and those goods have been:

exported outside the UK (or dispatched from Northern Ireland to an EU country)
warehoused for export
destroyed

Be aware that:

warehousing for export does not apply to alcoholic drinks charged with duty under the Finance No. 2 Act 2023 (for example spirits, beer, wine, cider, alcopops and so on)
chewing tobacco and tobacco for heating are not an eligible product for drawback when dispatched from Northern Ireland to an EU country (or to the rest of the UK) — otherwise drawback claims may be made in respect of these goods
goods removed to the Isle of Man are not eligible goods due to the common duty system operated between the UK and the Isle of Man

4.4 Definition of ‘eligible claimant’ for drawback purposes

You are an eligible claimant for drawback purposes if you are a ‘revenue trader’ and you dispatch, export, warehouse or destroy excise goods in the course of your business.

The eligible claimant when goods are exported (or dispatched from Northern Ireland to an EU country) is normally the owner of the goods immediately prior to the dispatch or export transaction.

We do not normally accept claims from private individuals. However, in relation to dispatches from Northern Ireland to an EU country on or after 13 February 2023, we may do so if you are dispatching those goods for a commercial purpose and have obtained prior approval as a temporary certified consignor.

For more information on how to get such an approval, read commercial importers, certified traders and tax representatives — EU trade in duty paid excise goods (Excise Notice 204b).

Where eligible goods are being destroyed, the eligible claimant must normally be the person who originally paid the excise duty on those goods (read paragraphs 9.2 and 9.7).

Additionally, the nature of the eligible claimant’s business must not be exclusively or mainly the destruction of duty paid excise goods.

If you are a registered cidermaker, a licensed wine or other fermented products (previously known as made-wine) producer, or a registered brewer or registered holder and want to claim drawback for the destruction of spoilt goods, you must read paragraph 3.7 to establish if you are an eligible claimant for drawback as described in this notice or whether another procedure applies, such as arrangements described in:

If you are a tobacco manufacturer and you are claiming drawback for tobacco products that have been returned to your registered store to be recycled, repackaged or destroyed, you must also read paragraph 3.5 to establish if you are an eligible claimant for drawback or if another procedure applies.

4.5 Actions required if goods carry fiscal marks or duty stamps

Before you can claim drawback on tobacco products bearing fiscal marks you must first destroy or permanently obliterate the fiscal marks.

You can find out more information about fiscal marks in Tobacco Products Duty (Excise Notice 476).

Before you can claim drawback on spirits bearing duty stamps you must first obliterate the duty stamps in accordance with the Duty Stamps Regulations (unless you are a Registered Mobile Operator). At least 2 clear business days notice is required before you obliterate the stamps.

You can find out more information about duty stamps in UK Duty Stamps Scheme (Excise Notice DS5).

However, there is an exception to the need to obliterate where goods are exported to the Republic of Ireland as part of a continuous journey from Great Britain to Northern Ireland (read paragraph 11.2 for information).

4.6 Person classed as the ‘original duty payer’ of excise goods

You are the original duty payer if you originally paid the excise duty for the goods on your drawback claim.

This normally means that you declared and paid the duty to HMRC at the duty point. However, you could still be classed as the original duty payer if your money or your deferment account is used by a third party to pay the duty.

For example, where a warehousekeeper or importer (as part of the service they provide to you) submits the appropriate HMRC duty payment document but quotes your deferment account number.

It’s also possible that you could be classed as the original duty payer if the excise duty was paid using a third party’s money or deferment account. To qualify, the third party must have originally paid the duty to HMRC on your behalf and billed you for the excise duty as a separate item on the invoice issued to you for the service they provided, which you then paid.

You would not normally be considered to be the original duty payer if you simply buy duty paid goods from a supplier (this includes suppliers who are also warehousekeepers), even if the duty element of the overall cost is itemised separately on your invoice. In this case the original duty payer would be the person who actually first paid the duty to HMRC.

4.7 I am the original duty payer of the goods on my drawback claim — evidence of UK duty payment need

This paragraph contains requirements that have force of law under regulation 7(1) of the EGDR. This paragraph imposes additional requirements with which you must comply as a condition of receiving drawback.

As the original duty payer, you must submit the original duty payment document. This can be either the original document or a copy of it.

By ‘original duty payment document’ we mean one of the following:

validated copy 2 or electronic confirmation of W5, W6, W50, W5D, W6D or HO10
HM2, HM4, TRC2
EX46, EX606
TP7
HO73, HO74, HO75
HO930, C and E930A, HO101
the full import declaration, the entry number, entry date and entry processing unit number from the Customs Handling of Import and Export Freight (CHIEF)
the Movement Reference Number from the Customs Declaration Service

4.8 I am not the original duty payer of the goods on my drawback claim — evidence of UK duty payment need

This paragraph contains requirements that have force of law under regulation 7(1) of the EGDR. In particular this paragraph imposes additional requirements with which you must comply as a condition of receiving drawback.

If you are not the original duty payer, you must provide evidence that clearly shows the goods on your drawback claim are UK duty paid and provide a clear audit trail between those goods and the original duty payment document.

You will need to gather evidence from both:

the original duty payer or payers
any persons in the supply chain who previously had ownership of the goods on your drawback claim

You must provide the following evidence, numbered and scheduled in a way that makes it obvious which document relates to which set of goods:

a copy of your purchase invoice or invoices for the goods on your drawback claim
the name and VAT registration number of the business that originally paid the excise duty
the details of the original duty payment document or documents, including the name of the document and details as follows:
- W5, W6, W5D or W6D — provide the date of the document and the consecutive reference number
- W50 — provide the Collector’s duty number and date shown on Receipt copy 3 (if payment was deferred, also provide the duty deferment approval number (DAN))
- HO10 — provide the DAN and the period ended time and date
- HM2 — provide the dates covered by the return, the excise accounting ID number and the DAN
- HM4 — provide the HMRC Authorisation Number and the date received from the ‘HMRC use only’ box
- TRC2 — provide the temporary registered consignee (TRC) and temporary consignment authorisation (TCA) reference numbers and the date the goods were received
- EX46 — provide the date of the document and the Brewers Reference Number
- EX606 — provide the period dates and the Unique Reference Number (URN)
- TP7 — provide the period dates and the Approval number
- HO73, HO74, HO75 — provide the accounting period and Trader’s reference
- HO930, C and E930A — provide the accounting period and the Registration Number
- HO101 — provide the VAT registration number (if one is shown) and the date of the declaration
for a CHIEF full import declaration, the entry number, entry date and entry processing unit number
for a Customs Declaration Service full import declaration, the Movement Reference Number
copies of delivery notes showing the name, address and VAT registration number of any businesses who took ownership of the goods between original duty payment and the purchase by you, including transaction dates

In specific cases we can also make it a condition of your claim that you supply supplementary information about markings on the goods, for example:

batch or lot numbers
date and time of manufacture

If you cannot obtain details of the original duty payment document from the original duty payer, read paragraph 4.9.

4.9 I am not the original duty payer of the goods on my drawback claim — action required if I cannot obtain details of the original duty payment document

In some circumstances you might not be able to obtain the details of the original duty payment document from the original duty payer (this information is an essential part of the information requested at paragraph 4.8 that proves UK excise duty payment).

If the original duty payer cannot or will not provide you with the details of the original duty payment document, you can contact the Drawback Central Assurance Team (DCAT) to ask if alternative evidence can be submitted (known as an alternative evidence agreement).

If you would like to ask for an alternative evidence agreement, write to DCAT including:

evidence that you have tried to obtain details of the original duty payment document from the original duty payer but this was unsuccessful
a written declaration on letter headed paper from the original duty payer’s business, signed from an authorised signatory, stating:
- that they cannot or will not provide you (or your intermediary if one exists in the supply chain) with details of original duty payment
- that goods are supplied duty paid
- the types and brands of the goods supplied

If DCAT agree your alternative evidence agreement they will confirm this in writing. You can then submit your drawback claim with a copy of the alternative evidence agreement and the other information requested at paragraph 4.8 (the purchase invoice, details of the original duty payer and delivery notes).

Alternative evidence agreements must be agreed before you submit the NOI form.

An agreed alternative evidence agreement can be used for future drawback claims that involve the same original duty payer, supply chain and products.

However, if any component of the alternative evidence agreement changes, the agreement is void and a new agreement must be reached with DCAT. For example, where the written declaration from the original duty payer is valid for a set period of time and that time period has now expired.

We will periodically review alternative evidence agreements to check there has been no change.

We will withdraw alternative evidence agreements where we identify non compliance or revenue risks.

4.10 Amount of notice to give HMRC before you dispatch, export, warehouse for export or destroy the goods you intend claiming drawback on

If you want to make a claim for drawback, you’ll need to give us written notice. You must notify us before the goods are exported, warehoused for export, destroyed, or dispatched (read paragraph 3.2 for more information). This is so that we can inspect the goods, and any documentation about them. You can use form EX75 to notify us. If the goods have been accidently destroyed, you should still notify us.

You must give us at least 2 clear business days notice between the day the NOI is received at the DPC and the day the goods will be dispatched, exported, warehoused for export or destroyed.

Where goods will be destroyed and they are not held at your business premises, you must give us at least 5 clear business days notice between the day the NOI is received at the DPC and the day the goods will be destroyed.

A business day is a day that is not a:

Saturday
Sunday
Bank Holiday

The day the NOI is received does not count towards the period of notice. For example, if the NOI is received on Monday the period of notice starts on Tuesday.

If the NOI is received by email after 4pm it will be treated as received the following business day. For example, if the NOI is received by email at 3:45pm on Monday, it is treated as received on Monday and the period of notice starts on Tuesday. However, if the NOI is received by email at 4:30pm on Monday, it is treated as received on Tuesday and the period of notice starts on Wednesday.

If you intend to hold the goods only for the minimum period of notice required, or if you posted the NOI, contact the DPC by email to confirm when the NOI was received so that you can make sure you provide the correct period of notice.

If you remove goods from the inspection address specified in your NOI or carry out destructions before the period of notice has expired we will reject your claim.

Period of notice example 1

If the NOI is received by post at the DPC on Thursday 1 June:

the NOI is treated as received on Thursday 1 June
the period of notice is two business days — Friday 2 June and Monday 5 June (Saturday and Sunday are not business days)
the goods can be exported (dispatched if from Northern Ireland to an EU country), or warehoused for export on or after Tuesday 6 June, provided the goods were held at the premises declared on the NOI for the period Friday 2 June to Monday 5 June — this also applies to goods intended for destruction, provided they are held for inspection at your business address
if the goods to be destroyed are not being held for inspection at your business address you must give us at least 5 clear business days’ notice — in this example, this means that the goods could be destroyed on or after Friday 9 June

Period of notice example 2

If the NOI is received by email at 4:30pm on Thursday 1 June:

the NOI is treated as received on Friday 2 June (the notice was received by email after 4pm)
the period of notice is 2 business days — Monday 5 June and Tuesday 6 June (Saturday and Sunday are not business days)
the goods can be exported (dispatched if from Northern Ireland to an EU country), or warehoused for export on or after Wednesday 7 June, provided the goods were held at the premises declared on the NOI for the period Monday 5 June to Tuesday 6 June — this also applies to goods intended for destruction, provided they are held for inspection at your business address
if the goods to be destroyed are not held for inspection at your business address you must give us at least 5 clear business days’ notice — in this example, this means that the goods could be destroyed on or after 10 June. Although this is a Saturday, the 5 business days’ notice was provided in the period Monday to Friday

4.11 Information you need to provide in your notice of intention to claim drawback

You must supply us with the following information which is requested on the NOI form:

your name, address, VAT registration number and phone number
the name, address, VAT registration number and phone number of the supplier or suppliers you bought the goods from
the name and address of the premises at which the goods will be held available for inspection
the quantity and description of goods including how they are packaged
the amount of duty paid on the goods

If you intend to dispatch the goods from Northern Ireland to an EU country, you must also tell us:

the name and address of the premises the goods are being dispatched to in the EU country
the name, address, VAT registration number and phone number of the buyer in the EU country (in the case of self supply, this will be the details of your registered business in the EU country)

If you intend to export the goods you must also tell us:

the name and address of the premises the goods are being exported to in the other country
the name, address, phone number and email address of the buyer in the other country

If you intend to warehouse the goods for subsequent export you must also tell us the name, address and approval number of the warehouse the goods are being removed to.

If you intend to destroy the goods you must also tell us:

the address of the premises at which the goods will be destroyed
the date and time destruction will take place
the method of destruction you intend to use
the reason for the destruction of the goods

4.12 If you need to change the details you submitted in your notice of intention to claim drawback

This paragraph contains requirements that have force of law under regulation 7(1) of the EGDR. In particular, this paragraph imposes additional requirements with which you must comply as a condition of receiving drawback.

If you find that you need to change any information on your NOI form after you have submitted it, you must contact the DPC by email and tell them about the change in writing.

If the change affects the inspection of the goods (for example the type or quantity of goods, the address where the goods are held for inspection and so on) the period of notice will start again from the business day after the day you advise the DPC of the change. The DPC will confirm the start date of the amended period of notice.

If you do not notify us of changes to the information on your NOI form, or adhere to a revised period of notice, your drawback claim may be reduced or rejected (read section 13 of this notice for more information).

4.13 Time limits to claiming drawback

The event giving rise to the claim for drawback (read paragraph 3.2) must take place within 3 years of the date the UK excise duty was paid on the goods.

4.14 The minimum amount of drawback you can claim

The minimum amount of drawback you can claim is £500. If your claim is lower than £500 you can wait and submit multiple claim forms at the same time to meet the £500 minimum.

If the total amount of drawback you could have claimed in the last 6 months is less than £500 (and you have not submitted a drawback claim during that 6 months) the minimum amount of drawback you can claim becomes £50. So, if you have not submitted a drawback claim in the last 6 months and you have a drawback claim or claims that total £50 or more, you can submit the drawback claim or claims.

4.15 Records you must keep to support your claim for drawback

This paragraph contains requirements that have force of law under regulations 7(1) and 8(2)(c) of the EGDR. In particular this paragraph imposes additional requirements with which you must comply as a condition of receiving drawback.

As a revenue trader you need to keep certain records regarding your business. Revenue traders’ records (Excise Notice 206) explains the records you must keep.

In addition to the records required in Notice 206, you must also keep the evidence of UK duty payment on the goods you claimed drawback for.

If the goods were dispatched from Northern Ireland to an EU country, you must also keep the evidence of duty payment in that country.

If the goods were sent from Great Britain to Northern Ireland through the Republic of Ireland, you must also keep the evidence of duty payment in Northern Ireland.

Question 5

5.  Drawback forms

Accepted Answer

This section contains requirements that have force of law under section 133(1) CEMA and regulations 7(1), 8(1)(a), 8(2)(a) of the EGDR and paragraph 1 of Schedule 1 of the EGDR.

In particular, paragraphs 5.1 and 5.6 sets out the form and manner in which a claim for drawback should be made.

Paragraph 5.2 sets out additional requirements you must comply with when submitting a notice of intention to claim drawback and paragraph 5.6 specifies where a notice of intention to claim drawback must be sent.

5.1 The forms required to claim drawback

There are 2 forms used within the drawback process. These are the EX75 ‘Notice of Intention to claim drawback’ form (often called the NOI) and the EX76 ‘Claim for drawback of excise duty’ form (often called the drawback claim form).

You use the NOI to notify us that you intend to make a claim for drawback. You submit this form before the event giving rise to drawback takes place (read paragraph 4.10). The NOI provides us with the opportunity to inspect the goods.

You use the drawback claim form to make the claim for drawback of excise duty. You submit this form after the event giving rise to drawback takes place. No payment will be made under drawback procedures unless a correctly completed drawback claim form is submitted along with any requested supporting evidence.

5.2 Where you can get an NOI form

You can get the EX75 ‘Notice of Intention to claim drawback’ (NOI) form online.

To notify us of your intention to claim drawback you can:

use the online service through the Government Gateway — remember to use this service you must have a Government Gateway account
print the form off, fill it in and post it to HMRC

You can also reproduce the NOI using your own stationery but you must make sure that your version contains exactly the same information, in exactly the same order, as the official HMRC print version.

If you decide to reproduce the NOI form in this way you must make sure that the declaration section is properly signed before submitting the form.

5.3 Where you can get a drawback claim form

The DPC will send you an EX76 ‘Claim for drawback of excise duty’ form (drawback claim form) when you submit a fully completed NOI. The drawback claim form will include an HMRC claim reference number which you should record and quote on any further correspondence about your claim.

The drawback claim form is only available from the DPC. It is not available from our website or the helpline.

If you lose the drawback claim form or it does not arrive, contact the DPC who will send you a duplicate form.

If you are a registered brewer and you have chosen to offset the amount of duty drawback on your EX46, you will not be sent a drawback claim form.

Read paragraph 3.4 for an overview of the drawback process for registered brewers offsetting the amount of duty drawback on their EX46 return.

5.4 Who must complete and sign the NOI and drawback claim form

You (the eligible claimant) can complete the NOI and drawback claim form or you can delegate this to a third party as long as the correct details are provided.

The NOI and drawback claim form must be signed by you or an authorised signatory within your business.

5.5 What it means when you sign the NOI and drawback claim form

When you sign the NOI form you are stating all of the following:

the information you have provided on the EX75 form is true and complete
you have read and understood this notice
you understand that your Notice of Intention forms part of your overall claim for drawback

When you sign the drawback clam form you are stating all of the following:

the information given on the form is true and complete
you have read and understood this notice
the goods on the drawback claim form are eligible goods
you are an eligible claimant
your claim complies with the conditions laid down in the Excise Goods (Drawback) Regulations 1995

5.6 Where to send the completed Notice of Intention form and drawback claim form

You should post or email the completed NOI to the DPC. If you choose to email your NOIs, you must submit each NOI on a separate email.

You must post the completed drawback claim form to the DPC (the drawback claim form cannot be submitted by email). If you have previously sent the NOI by email you must also send the original NOI document with your completed claim form.

The contact details for the DPC are shown in section 17 of this notice.

Question 6

6.  Claiming drawback when dispatching goods from Northern Ireland to an EU country

Accepted Answer

6.1 What you need to do before dispatching goods from Northern Ireland to an EU country

This paragraph contains requirements that have force of law under regulation 8(2)(b) and (d) of the EGDR (as they will apply in Northern Ireland).

In particular, this paragraph sets out the pre-export declarations and other requirements that must be completed and made available for inspection before you export goods on which you intend to later claim drawback.

Where you intend to dispatch goods from Northern Ireland to the EU and claim drawback you must before dispatch:

make sure that the goods will be dispatched by someone approved as a certified consignor
check that you are dispatching goods to an EU business that holds an appropriate approval as a certified consignee
make sure that there is a valid movement guarantee in place to cover the movement of the goods — this is usually provided by the certified consignee, although it can be provided by the certified consignor, owner or transporter if the member state of destination allows this
complete a FAD or a commercial equivalent containing the same information, which must accompany the goods throughout the journey
destroy or permanently obliterate the fiscal marks or duty stamps if the claim includes alcoholic or tobacco products that bear fiscal marks or duty stamps (however, read paragraph 11.2)
complete and submit form NOI, and
hold the goods for at least the relevant period of notice in case we decide to inspect the goods and the FAD

You may choose to obtain approval as a certified consignor or to appoint someone who already holds an approval as a certified consignor to dispatch the goods on your behalf. In both cases, as the eligible claimant you will still need to be able to provide evidence that the above requirements were met.

When we use the terms certified consignor or certified consignee in this notice we also mean temporary certified consignor or temporary certified consignee.

More information on the new certified trader schemes and the new duty paid movement requirements which apply from 13 February 2023 can be found in commercial importers, certified traders and tax representatives — EU trade in duty paid excise goods (Excise Notice 204b).

When you move UK duty paid goods to an EU country, you must also make sure that you comply with any statutory VAT obligations that may arise in the receiving EU country as a result.

It is in your interest to check that you will be an eligible claimant and that the goods will be eligible goods. You should also check that you will be within the time limit to claim drawback.

You cannot move UK duty paid goods directly for storage in a duty suspended tax warehouse in an EU country.

6.2 When you can dispatch the goods

You can dispatch the goods once you have completed the relevant actions listed in paragraph 6.1 and after the relevant period of notice has ended.

If you remove goods from the inspection address specified in your NOI before the period of notice has expired we will reject your claim.

You must exercise control over the delivery of the goods.

6.3 When you can submit the claim for drawback (or offset the drawback on your EX46 return)

You can submit your drawback claim form, or offset the drawback on your EX46 return, when the goods have been received in the EU country of destination and you have all the supporting evidence required (read paragraph 6.4).

You must also make sure that the claim or claims being submitted comply with the time limit and the minimum monetary limit.

6.4 Supporting evidence you need to submit with your drawback claim form

This paragraph contains requirements that have force of law under regulation 10 of the EGDR (as they will apply in Northern Ireland). In particular, this paragraph sets out the documentary evidence of export you must include with your claim for drawback after export.

For movements which started before 13 February 2023, you must provide the following documents with your completed drawback form:

evidence of UK duty payment
the endorsed copy 3 of the SAAD (or commercial equivalent) with the information in section B ‘Certification of Receipt’ fully completed by the recipient
evidence showing that duty is chargeable and has been collected in the EU country of destination (such as the duty accounting document, issued by the fiscal authority in that country) or confirmation that the goods are not liable to excise duty in that country
if the claim includes alcoholic goods subject to duty stamps, a copy of the notification of obliteration sent to the Duty Stamps team plus an extract from your records showing the details of the stamps that were obliterated (subject to paragraph 4.5)

For movements which started from 13 February 2023 you must provide the following documents with your completed drawback form:

evidence of UK duty payment
a copy of the fallback accompanying document for the movement
the fallback report of receipt for the movement, fully completed by the EU certified consignee
evidence showing that duty is chargeable and has been collected in the EU country of destination (such as the duty accounting document, issued by the fiscal authority in that country) or confirmation that the goods are not liable to excise duty in that country
if the claim includes alcoholic goods subject to duty stamps, a copy of the notification of obliteration sent to the duty stamps team plus an extract from your records showing the details of the stamps that were obliterated (subject to paragraph 4.5)

If you are a brewer offsetting the drawback on your EX46 return, you do not need to submit these documents to the DPC but you must keep them for your records for audit purposes.

6.5 Special arrangements that apply when you dispatch goods from Northern Ireland to a private individual in an EU country (also known as ‘distance selling’)

If you dispatch UK duty paid excise goods from Northern Ireland to private individuals in an EU country (known as distance selling), you must still follow the process outlined in this section 6.

However, if you frequently dispatch small packages to private individuals in EU countries, we might be able to ease some of the requirements for these transactions. We might be able to:

waive the requirement to submit the NOI and provide the period of notice (due to the small size of the packages and the high frequency of the movements) and instead require you to provide a schedule with your drawback claim that lists all the transactions included in that claim and provides the same information as requested on the NOI
waive the requirement to submit orders and invoices with your drawback claim (you still need to keep these documents and make then readily available)

Except for the copy of the SAAD or fallback documentation, you still need to provide the rest of the supporting evidence requested in paragraph 6.4 for each of the transactions included in your drawback claim. As the SAAD or fallback is not used for distance sales you will need to provide other evidence and details to prove the goods were dispatched.

If you frequently dispatch small packages to private individuals in EU countries and you would like to use these distance selling easements when claiming drawback, contact DCAT who will consider if an agreement is suitable for you. You must make an agreement to use distance selling easements with DCAT before you start to use the easements.

If you would like more information about distance selling easements, contact DCAT in writing.

Question 7

7.  Claiming drawback when exporting goods from the UK (other than dispatch from Northern Ireland to an EU country)

Accepted Answer

For movements from Northern Ireland to an EU country, read section 6. For movements between Northern Ireland and Great Britain through the Republic of Ireland, read section 11.

This section applies to goods being exported from:

Great Britain to a country outside of the UK
Northern Ireland to a country outside the UK (or the Isle of Man) which is not an EU country

7.1 What you need to do before exporting goods outside the UK

This paragraph contains requirements that have force of law under regulation 8(2)(c) and (d) of the EGDR. In particular, this paragraph sets out the pre-export declarations and other requirements that must be completed and made available for inspection before you export goods on which you intend to later claim drawback.

If you intend to export duty paid excise goods to a business outside the UK and claim drawback of the excise duty, you must — before the goods are exported:

Lodge the export declaration with HMRC

You or your representative such as a customs agent must lodge the export declaration with HMRC that covers the goods on which you intend to claim excise duty drawback.

The export declaration must include sufficient information to enable HMRC to cross reference the export with other commercial documents so we are satisfied it relates to the specific consignment being exported. For example, the export invoices and any transport documents such as bills of lading, airway bills or CMRs must clearly relate to the goods on which drawback is being claimed.

Find out more information about exporting goods from the UK.

If you are exporting by post complete form C&E132

You must complete form C&E132 ‘Certificate of posting of goods delivered from a Customs and Excise postal depot of from an exporter’s premises for exportation by post’ (an international customs declaration available from the Post Office) and label each package with form C and E 83A.

For postal exports, as long as each parcel is issued with a unique identification number, we will accept a commercial equivalent of the form C&E132 showing an audit trail of the unique identification tracking numbers assigned to each parcel. If you wish us to consider your use of such a system you must contact the DPC for further details.

If the claim includes alcoholic or tobacco products

If the claim includes alcoholic or tobacco products that bear fiscal marks or duty stamps, destroy or permanently obliterate the fiscal marks or duty stamps (subject to paragraph 4.5).

You must also:

complete and submit the Notice of Intention form
hold the goods at the premises nominated in your Notice of Intention form for at least the relevant period of notice (read paragraph 4.10) in case we decide to inspect the goods
keep a printout of the export declaration (or for postal exports, a copy of form C&E132) with the goods for the duration of the relevant period of notice so that those documents can be inspected by HMRC if required

It is in your interest to check that you will be an eligible claimant and that the goods will be eligible goods. It is also in your interest to check that you will be within the time limit to claim drawback.

7.2 When you can export the goods

You can export the goods once you have completed the actions listed in paragraph 7.1 and after the relevant period of notice has ended.

If you remove goods from the inspection address specified in your NOI before the period of notice has expired we will reject your claim.

You must exercise control over the delivery of the goods.

7.3 When you can submit the claim for drawback (or offset the drawback on your EX46 return)

You can submit your drawback claim form, or offset the drawback on your EX46 return, when the goods have been exported from the UK and you have all the supporting evidence required (read paragraph 7.4 for information).

You must also make sure that the claim or claims being submitted comply with the time limit and the minimum monetary limit.

7.4 The supporting evidence you need to submit with your drawback claim form

This paragraph contains requirements that have force of law under regulations 7(1) and 10 of the EGDR. In particular it imposes additional conditions on your claim for drawback and specifies the documentary evidence of export required to accompany a claim for drawback.

You must provide all of the following documents with your completed drawback form:

evidence of UK duty payment (read paragraphs 4.7 to 4.9 for information)
if the claim includes alcoholic goods subject to duty stamps, a copy of the notification of obliteration sent to the Duty Stamps team plus an extract from your records showing the details of the stamps that were obliterated
the finalised export declaration that shows a fully departed status:
- for CHIEF, the entry reference number and a ‘departed’ status of 60 for direct exports or 62 for indirect export
- for the Customs Declaration Service, the Movement Reference Number showing the ‘exported’ status
- for postal exports, a certified form C&E132

Businesses must also retain and provide on request commercial evidence that confirms the goods were exported where we require additional information.

If you are a brewer offsetting the drawback on your EX46 return, you do not need to submit these documents to the DPC but you must keep them for your records for audit purposes.

7.5 Special arrangements that apply when you export goods to a private individual outside the UK

If you export UK duty paid excise goods to private individuals outside the UK or EU, you must still follow the process outlined in section 7.

However, if you frequently export small packages to private individuals outside the UK we might agree to ease some of the requirements for these transactions. For example, we may:

waive the requirement to submit the Notice of Intention form and provide the period of notice (due to the small size of the packages and the high frequency of the movements) and instead require you to provide a schedule with your drawback claim that lists all the transactions included in that claim and provides the same information as requested on the Notice of Intention form
waive the requirement to submit orders and invoices with your drawback claim (you still need to keep these documents and make then readily available)

Where we agree to waive these requirements, you still need to provide the rest of the supporting evidence requested in paragraph 7.4 for each of the transactions included in your drawback claim.

If you do frequently export small packages to private individuals outside the UK and you would like an agreement to use the easements described in this paragraph, contact DCAT. You should not stop carrying out a requirement without the full agreement of DCAT, as this may result in your claim being rejected.

If you would like more information about these easements, contact DCAT in writing.

Question 8

8.  Claiming drawback when warehousing goods for export

Accepted Answer

8.1 Definition of ‘warehousing for export’

‘Warehousing for export’ allows businesses to claim drawback on certain excise goods placed in an excise warehouse under duty suspension control, providing that the goods will be dispatched from Northern Ireland to an EU country under duty suspension arrangements or exported outside the UK within 6 months from the date of the drawback claim being made.

Warehousing for export does not apply to alcoholic drinks charged with duty under Finance (No. 2) Act 2023, for example:

spirits
beer
wine
cider
alcopops

Therefore, for example, you cannot place duty paid beer in an excise warehouse and reclaim the duty under warehousing for export arrangements.

8.2 What you need to do before warehousing goods for export

When you intend to warehouse goods for export, you must — before the goods are warehoused:

create a warehousing advice note in triplicate on headed notepaper, a delivery note or other commercial documentation (read paragraph 8.3) and sign the ‘Goods for export or dispatch to an EU country’ declaration
complete and submit form Notice of Intention (read paragraph 4.11)
hold the goods and the warehousing advice note for at least the relevant period of notice in case we decide to inspect the goods and the warehousing advice note

It is in your interest to check that you will be an eligible claimant and that the goods will be eligible goods. Warehousing for export does not apply to alcoholic drinks charged with duty under Finance (No. 2) Act 2023, for example:

spirits
beer
wine
cider
alcopops

It is also in your interest to check that you will be within the time limit to claim drawback.

8.3 the information required on the warehousing advice note

This paragraph contains requirements that have force of law under regulation 8(1)(b) of the EGDR. In particular, it sets out the form of, and particulars that must be included in, a warehousing advice note.

The warehousing advice note must include the following information:

the authorised warehousekeeper’s name
the address of the receiving warehouse
your own unique number identifying the advice note
your name, address and VAT registration number
a description of the packages and goods, including the Combined Nomenclature (CN) code and the value of the goods
the expected date of export or dispatch
the expected destination
a description of transporting vehicles
the identifying numbers and types of any seals applied

In addition, the exact wording of the following 2 declarations must be included:

Goods for export or dispatch to an EU country

Excise goods listed above (which do not include any alcoholic drinks charged with duty under the Finance (No. 2) Act 2023) are to be warehoused for export or dispatch and will be the subject of a claim for repayment of excise duty in accordance with the conditions set out in the Excise Goods (Drawback) Regulations 1995. They may not be sent for home use or sold to any person in warehouse without prior written permission from HMRC.

Signed by the claimant.

Certificate of receipt

The excise goods listed above (which do not include any alcoholic drinks charged with duty under the Finance (No. 2) Act 2023) were received into this warehouse on [date] under stock account reference [reference number] for the purposes of subsequent export or dispatch. They may not be sent for home use or sold to any person in warehouse without prior written permission from HMRC.

Signed by the warehousekeeper.

The first declaration must be signed by you, the eligible claimant, (or by an authorised signatory in your business) before the goods are moved to the warehouse to instruct the warehousekeeper.

The second declaration must be signed by the warehousekeeper when the goods are received to show they acknowledge the receipt of the goods and the conditions of removal.

You must keep the second and third copy of the warehousing advice note with the goods when you move them to the warehouse (you keep the first copy for your records). The warehousekeeper will return one of the copies of the warehousing advice note to you with the ‘Certificate of receipt’ declaration signed.

8.4 When you can send the goods to the warehouse

You can move the goods to the duty suspended area of the warehouse stipulated in your warehouse advice note once you have completed the actions listed in paragraph 8.2 and after the relevant period of notice has ended.

If you remove goods from the inspection address specified in your NOI before the period of notice has expired we will reject your claim.

You must exercise control over the delivery of the goods.

8.5 When you can submit the claim for drawback

You can submit your drawback claim form when the goods have been received into the duty suspended area of the warehouse stipulated in your warehousing advice note and you have all the supporting evidence required (read paragraph 8.6).

You must also make sure that the claim or claims being submitted comply with the time limit and the minimum monetary limit described in section 4 of this notice.

8.6 The supporting evidence you need to submit with your drawback claim form

This paragraph contains requirements that have force of law under section 133 of CEMA and regulation 7(1) of the EGDR. In particular, it specifies what must be included with your claim for drawback and imposes additional and alternative requirements that you must comply with as a condition of your claim for drawback.

You must provide the following documents with your completed drawback form:

evidence of UK duty payment
the warehousing advice note with the ‘Certificate of receipt’ declaration signed by the warehousekeeper

8.7 The evidence you need to show that the goods were subsequently exported or dispatched from the warehouse

You must get a signed statement from the warehousekeeper certifying that evidence of export or dispatch is available for inspection.

Required wording for the statement for goods dispatched from Northern Ireland to an EU country

I certify that the Report of Receipt message (IE818) for ARC [give the ARC number of the movement] relating to the dispatch of [give details of goods] with stock account reference [give the stock account reference] has been successfully submitted on EMCS.

Signed by the warehousekeeper.

Required wording for the statement for goods exported outside the UK using CHIEF

I certify that the CHIEF S8 print out showing the Entry reference number and a ‘departed’ status of [give the appropriate code, either 60 or 62] relating to the export of [give details of goods] with stock account reference [give the stock account reference] is held at this warehouse and is available for inspection.

Signed by the warehousekeeper.

Required wording for the statement for goods exported outside the UK using the Customs Declaration Service

I certify that the Customs Declaration Service Movement Reference Number[give the appropriate exported status] relating to the export of [give details of goods] with stock account reference [give the stock account reference] is held at this warehouse and is available for inspection.

Signed by the warehousekeeper.

You must keep the signed statement for your records.

8.8 Time limit for exporting or dispatching the goods following their receipt into the warehouse

You must export or dispatch the goods within 6 months from the date you submitted your drawback claim.

8.9 Action required if the goods are not exported or dispatched from the warehouse within the specified time limit

If you do not export or dispatch the goods within 6 months from the date you submitted your drawback claim you must tell the DPC. The DPC will cancel your drawback claim and you will be assessed for the duty we repaid you.

When you have paid the assessment for the amount of duty we originally repaid to you as drawback, we will supply written confirmation of the duty you have repaid. You can then show the written confirmation to the warehousekeeper to remove your goods from the warehouse.

Question 9

9.  Claiming drawback for planned destruction of goods

Accepted Answer

9.1 Condition of goods subject to a planned destruction claim

For you to claim drawback for planned destructions, the quality of the goods must be unsatisfactory due to:

faulty manufacture
deterioration
contamination

Read section 14 of the Sales of Goods Act 1979 for a definition of ‘satisfactory quality’.

9.2 What you need to do before destroying goods

When you intend to destroy goods that are of an unsatisfactory quality, you must — before the goods are destroyed:

complete and submit the Notice of Intention form
hold the goods for at least the relevant period of notice in case we decide to inspect the goods (read paragraph 4.10 to check which period of notice applies)

Destruction normally takes place at the address where the goods are available for inspection, however we can permit goods to be destroyed at another UK address such as an independent destruction premises. If we decide that your proposed place of destruction is not satisfactory we will tell you in writing.

It is in your interest to check that you will be an eligible claimant and that the goods will be eligible goods. It is also in your interest to check that you will be within the time limit to claim drawback. To be an eligible claimant you should normally be the original duty payer, if you are not and intend to exceptionally make a claim, you must provide the information described in paragraph 9.7 when submitting your completed claim form.

If you are a registered cidermaker, a licensed wine or other fermented products producer, or a registered brewer or registered holder and you are claiming drawback for the destruction of spoilt goods, you must also read paragraph 3.7 to establish if you are an eligible claimant for drawback as described in this notice, or if another procedure applies, such as arrangements described in:

If you are a tobacco manufacturer and you are claiming drawback for tobacco products that have been returned to your registered store to be recycled, repackaged or destroyed, you must also read paragraph 3.5 to establish if you are an eligible claimant for drawback or if another procedure applies.

9.3 If we decide that my proposed method of destruction is not satisfactory

If we decide that the proposed method of destruction stipulated in your notice is not satisfactory we will tell you in writing. If you decide to continue with your claim using another method which is acceptable to us, your period of notice will start again from the business day after the day you advise the DPC of the new destruction method.

To be a suitable destruction:

9.4 What you need to keep as evidence that the goods were destroyed

This paragraph contains requirements that have force of law under regulation 7(1) of the EGDR. In particular, it imposes additional requirements that you must comply with as a condition of your claim for drawback.

You must keep records and evidence of the destruction specifying the actual goods destroyed. This could include a certificate of destruction signed by a responsible official of the company destroying the products, incineration receipts, stock and disposal records of any residual products, environmental permissions and permits, and so on.

The documentation must include the following details for the destroyed goods:

brand
quantities
time, date and place of destruction
the alcohol by volume (ABV), if the goods are alcoholic products

9.5 When you destroy the goods

You can destroy the goods on the date and time stated in your NOI as long as you have completed the actions listed in paragraph 9.2 and the relevant period of notice has ended.

If you destroy the goods before the period of notice has expired we will reject your claim.

You must destroy the goods in the manner stipulated in your NOI (or agreed with the DPC).

We reserve the right to attend the destruction or denaturing site during the process. If someone else carries out the destruction on your behalf you remain responsible for ensuring compliance with all of our procedures.

9.6 When you can submit the claim for drawback (or offset the drawback on your EX46 return)

You can submit your drawback claim form, or offset the drawback on your EX46 return, when the goods have been destroyed and you have all the supporting evidence required (read paragraph 9.7 for information).

You must also make sure that the claim or claims being submitted comply with the time limit and the minimum monetary limit.

9.7 The supporting evidence you need to submit with your drawback claim form

This paragraph contains requirements that have the force of law under section 133 of CEMA and regulation 7(1) of the EGDR. In particular, it specifies what must be included with your claim for drawback and imposes additional and alternative conditions which you must comply with as a condition of your claim for drawback.

You must provide the following documents with your completed drawback form:

evidence of UK duty payment
evidence of destruction

The documents you submit must include the following details for the destroyed goods:

brand
quantities
time, date and place of destruction
the ABV, if the goods are alcoholic products

Where a third party destroys the goods the information provided must be verifiable with the records of the destruction company.

If you are a brewer offsetting the drawback on your EX46 return, you do not need to submit these documents to the DPC but you must keep them for your records for audit purposes.

Where exceptionally a person intending to destroy duty paid excise goods for reason of faulty manufacture, subsequent deterioration or contamination is not the original duty payer, then as a condition of drawback, that person must, in addition to the other documentation specified in this paragraph, provide the following information when they submit their claim for drawback:

copies of correspondence with suppliers concerning reimbursement of purchase costs, showing that the duty element of the purchase cost will not be refunded
confirmation from the original duty payer that they will not be making a separate drawback claim in relation to the goods covered by the claim
an explanation as to why the original duty payer cannot destroy the goods and make the claim
detail demonstrating that the person making the claim will not be unjustly enriched by it

HMRC will carefully consider each case on its own merits before deciding whether, or not, to allow the claim.

Question 10

10.  Claiming drawback in cases of accidental destruction

Accepted Answer

10.1 The circumstances when you can claim drawback following the accidental destruction of goods

It is your responsibility to protect your goods by insuring them against normal risks. We will only consider claims for goods that were destroyed accidentally, (as opposed to goods that were destroyed following the planned destruction procedure described in this notice), for the following reasons where you can show that your insurance does not cover the duty liability of the goods that were:

accidentally destroyed whilst being removed to a warehouse for export
being exported or dispatched and were accidentally destroyed in the United Kingdom after leaving the premises at which they were available for inspection
destroyed by, or as a result of:
- riot
- terrorism
- war
- explosion
- earthquake
- any other fortuitous event that in our opinion it would not have been reasonable to insure the goods against

10.2 How to report an accidental destruction

This paragraph contains requirements that have force of law under regulation 7(1) of the EGDR. In particular, it contains requirements that you must comply with as a condition of your claim for drawback.

You must email the DPC at the earliest opportunity to report the accidental destruction in writing. You will need to provide:

your name, address, VAT registration number and phone number
the nature of your business
the name, address and VAT registration number of the person who supplied the goods to you
the name, address and VAT registration number of your customer, if relevant
a description of the goods, including whether they were packaged or in bulk
the amount of duty paid or a provisional estimate if that cannot be immediately ascertained
if a drawback claim had been initiated, the NOI reference number
details of the destruction including the time and place

You will need to satisfy us that the goods have not been and will not be consumed in the UK. Any undue delay in reporting the accidental destruction could result in your claim being rejected or reduced.

10.3 How to make the claim for drawback

When you have notified the DPC of the accidental destruction and provided all the information requested in paragraph 10.2 the DPC will send you a claim form.

You can submit your claim for the actual amount of UK duty paid on the goods when you have all the supporting evidence required (read paragraph 10.4 for information).

10.4 The supporting evidence you need to submit with your drawback claim form

This paragraph contains requirements that have the force of law under section 133 of CEMA and regulation 7(1) of the EGDR. In particular, it specifies what must be included with your claim for drawback and imposes additional conditions which you must comply with as a condition of your claim for drawback.

You must provide the following documents with your completed drawback form:

evidence of UK duty payment
evidence that the duty you are seeking to recover is outside the scope of normal insurance cover
evidence that you took adequate measures to safeguard the goods before and after the accident, and
evidence that your claim is genuine, for example
copies of police reports
statements from witnesses (for example the driver, security personnel, onlookers, third parties and so on)
correspondence with insurance companies (for example insurance assessor’s reports)

Question 11

11.  Claims for goods moving between Northern Ireland and Great Britain

Accepted Answer

11.1 When a drawback claim can be made

In most cases duty paid excise goods moving between Northern Ireland and Great Britain or the Isle of Man are not eligible goods for the purpose of drawback. This is because those goods will be consumed in the UK therefore UK excise duty remains due on those goods and it does not matter in which part of the UK this was paid.

However, where duty paid goods travel from Great Britain to Northern Ireland, but their journey takes them through the EU, then a drawback claim may be made. This is because those goods will be exported from Great Britain to the EU before their onward journey to Northern Ireland.

11.2 Differences from a normal export

This paragraph contains requirements that have force of law under regulation 10 of the EGDR. In particular, the documentary evidence required to support a claim.

If the goods are directly consigned from Great Britain to an address in an EU country, then this is a normal export. This means that you should follow the procedures and evidential requirements as described in section 7 of this notice.

If the goods are directly consigned from Great Britain to an address in Northern Ireland but merely pass through an EU country, in most cases the procedures and evidential requirements to follow will be those that apply to a normal export. This includes obliteration of any duty stamps, so new duty stamps would need to be applied in Northern Ireland, following the duty stamps requirements in UK Duty Stamps Scheme (Excise Notice DS5).

However, where UK duty stamped goods which are intended for retail sale in Northern Ireland only pass through the Republic of Ireland on their journey, it is possible to retain the stamps on the goods to avoid the need to reapply them. To do so you must:

ensure that Irish excise duty is paid immediately upon import to the Republic of Ireland
ensure that the goods move from the Republic of Ireland to Northern Ireland under cover of a duty paid scheme recognised under EU law
UK excise duty is paid upon arrival in Northern Ireland

In such cases, in addition to the evidential requirements for a normal export, we will require proof of UK excise duty payment in Northern Ireland before the drawback claim submitted in Great Britain can be paid. This is to reduce the risk of goods bearing legitimate UK duty stamps finding their way onto the UK market without payment of UK excise duty. Read section 4 of this notice for examples of acceptable evidence of payment of UK excise duty.

Question 12

12.  Payment of claims

Accepted Answer

12.1 How much duty will be repaid

We will repay the amount of UK excise duty originally paid subject to all the conditions and requirements in this notice and EGDR being met.

12.2 When you will receive your payment

We can process your claim once we receive your completed claim form with all the required supporting documentation and evidence. We aim to process your claim within 30 working days. Once your claim has been processed it can take up to 10 working days for you to receive your payment.

Remember that if you are a registered brewer and you are offsetting the amount of duty drawback on your EX46 return you will not physically receive a payment from HMRC as the duty is repaid to you through the offset.

12.3 How you will receive payment

You will receive your payment by Bankers Automated Clearing System (Bacs). Exceptionally we could pay by payable order. We will always pay any amount greater than £50,000 by Bacs.

Question 13

13.  Reduction or rejection of claims

Accepted Answer

13.1 When we will reduce your claim

We will reduce your claim where:

the amount of UK excise duty stated on the NOI form or claim form is higher than the amount of duty that was actually paid
the drawback claim form contains more, or different, goods than declared on the NOI form (we will only consider the goods declared on the NOI)
the SAAD, FAD or fallback report of receipt shows shortages for the goods that were received
you have notified a change to the NOI form but the revised period of notice was not adhered to — we will only consider the goods that were declared on the original NOI form as long as the original period of notice was adhered to and the inspection address did not change
you only met the conditions and requirements of this notice and EGDR for some, and not all, of the goods declared on the NOI form and drawback claim form — we will only consider the goods for which all the conditions and requirements were met

Read paragraph 2.4 of this notice for more information.

13.2 The circumstances when we will reject your claim

We will reject claims where:

goods have already had drawback paid on them
you failed to show that UK duty has been paid on the goods
in cases of goods dispatched from Northern Ireland to an EU country:
- it is not proved that the excise duty was physically collected in the country of destination to the satisfaction of the fiscal authorities in that country
- where the movement started on or after 13 February 2023, goods have not been dispatched by a certified consignor and received by a certified consignee
goods were not dispatched or exported
goods failed to arrive at their destination as notified to us
goods are not destroyed to our satisfaction
you have not complied with all of the conditions or procedures set out in this notice or notified by us in writing — this includes not complying with the relevant period of notice

Read paragraph 2.4 of this notice for more information.

Question 14

14.  Cancellation of claims

Accepted Answer

14.1 The circumstances when we will cancel your claim

If it comes to light that you were not an eligible claimant or the goods were not eligible goods we will cancel your drawback claim. If your drawback claim has already been granted we will assess you for the amount of duty repaid.

Read paragraph 2.4 of this notice for more information.

Question 15

15.  Visits by HMRC

Accepted Answer

15.1 The times when HMRC will visit your business and premises

This paragraph contains requirements that have force of law under regulation 7(1) of the EGDR. In particular, it contains requirements that you must comply with as a condition of your claim for drawback.

We may visit you from time to time to verify your claims. When we visit you must:

admit us to your premises at any reasonable time
produce records and goods for inspection
provide facilities for examining and taking account of goods
allow samples to be taken
observe health and safety standards

We may also decide to witness destructions. If you are carrying out (or someone else is carrying out on your behalf) a destruction at remote premises, you must make sure that any request by us for access to witness the destruction is granted.

15.2 How HMRC will carry out visits

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. All our officers carry identification and will show this when they arrive.

15.3 Responsibility for the safety of HMRC personnel

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

15.4 What you can expect from HMRC

You can expect that 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 demands on you and your staff’s time to a minimum
where possible, try to resolve matters during the visit

15.5 How you can help HMRC

You can help by:

keeping your records up to date
providing us with the information and explanations we request
helping us to understand your business and records

During our visit we will wish to see your business records relating to your trading activities, including records for dispatched, exported or destroyed goods.

We could also examine:

profit and loss trading statements
management accounts and reports
balance sheets
internal and external auditors reports
any other record maintained for a business purpose

15.6 If you disagree with a decision made by the visiting officer

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

If you still disagree you should read section 16 of this notice.

Question 16

16.  Review and appeals process

Accepted Answer

16.1 If you disagree with any decision we make about your affairs

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 penalty
a decision specifically connected to a claim for drawback

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

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

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

16.2 Time limit to ask for a review

If you want us to review a decision, you must write to the person who issued the decision letter within 30 days of the date of that letter. We will complete our review within 45 days, unless we agree another time with you.

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

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

If we cannot complete our review within 45 days, or any time we agreed with you, we will ask you whether you are willing to agree to an extension so that we can complete the review. If you do not agree to an extension, the review is treated as concluding that the decision being reviewed is upheld. We will write and tell you this. You then have 30 days from the date of that letter to ask the tribunal to hear your case.

16.3 What you must 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 us 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 Where to get more information

Find out more information about:

Question 17

17.  How to contact us

Accepted Answer

Contact the HMRC Excise Helpline on 0300 200 3700 or email the Mineral Oil Reliefs Centre at morc.exciseenquiries@hmrc.gov.uk if you have a question about excise or drawback.

If you are a Welsh speaker, contact the VAT, Customs and Excise and Duties Enquiries (in Welsh).

DPC enquiries and NOI submissions

Write to or email HMRC if you have a question about DPCs or NOIs:

HM Revenue and Customs
Excise Processing Team
BX9 1GL

For general enquiries, email: nationaldrawbackcentre@hmrc.gov.uk.

For submission of NOIs only, email: drawback.noi@hmrc.gov.uk.

Alternative evidence agreement requests

Write to HMRC to ask if you can submit an alternative evidence agreement (read paragraph 4.9 for information):

HM Revenue and Customs
Drawback Central Assurance Team
1st Floor
1 Atlantic Square
21 York Street
Glasgow
G2 8HS

Question 18

Your rights and obligations

Accepted Answer

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

Question 19

Help us improve this notice

Accepted Answer

If you have any feedback about this notice write to:

HM Revenue and Customs
Excise Fuel Duty Policy
4th Floor East
Trinity Bridge House
2 Dearmans Place
Salford
M3 5BS

Email: oils.policymail@hmrc.gov.uk

This address is not for general enquiries.

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 HMRC Excise Helpline on 0300 200 3700 or email the Mineral Oil Reliefs Centre at morc.exciseenquiries@hmrc.gov.uk.

Question 20

Putting things right

Accepted Answer

If you’re unhappy with HMRC’s service, contact the person or office you’ve been dealing with and they’ll try to put things right.

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

Question 21

How HMRC uses your information

Accepted Answer

Find out how HMRC uses the information we hold about you.

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1. Introduction

1.1 About this notice

1.2 Who should read this notice

1.3 What other notices will I need?

2. Legal background

2.1 the relevant law

2.2 Where to get copies of the law and regulations

2.3 How HMRC refer to the law in this notice

2.4 If you fail to meet your legal obligations

3. Overview of drawback

3.1 What drawback is

3.2 Events that can lead to a claim for drawback

3.3 How the drawback scheme works

3.4 Differences to the drawback scheme for registered brewers who wish to offset the drawback on their EX46 return

3.5 Differences to the drawback scheme for tobacco manufacturers claiming drawback for products returned for recycling, repackaging or destruction

3.6 Differences to the drawback scheme for traders approved for oils duty deferment who wish to offset the drawback on their HO10 return

3.7 Differences to the drawback scheme for brewers, wine producers or cidermakers who wish to claim drawback for spoilt product

4. Main conditions and requirements

4.1 The main conditions of drawback

4.2 Additional conditions that can be imposed

4.3 Definition of ‘eligible goods’ for drawback purposes

4.4 Definition of ‘eligible claimant’ for drawback purposes

4.5 Actions required if goods carry fiscal marks or duty stamps

4.6 Person classed as the ‘original duty payer’ of excise goods

4.7 I am the original duty payer of the goods on my drawback claim — evidence of UK duty payment need

4.8 I am not the original duty payer of the goods on my drawback claim — evidence of UK duty payment need

4.9 I am not the original duty payer of the goods on my drawback claim — action required if I cannot obtain details of the original duty payment document

4.10 Amount of notice to give HMRC before you dispatch, export, warehouse for export or destroy the goods you intend claiming drawback on

Period of notice example 1

Period of notice example 2

4.11 Information you need to provide in your notice of intention to claim drawback

4.12 If you need to change the details you submitted in your notice of intention to claim drawback

4.13 Time limits to claiming drawback

4.14 The minimum amount of drawback you can claim

4.15 Records you must keep to support your claim for drawback

5. Drawback forms

5.1 The forms required to claim drawback

5.2 Where you can get an NOI form

5.3 Where you can get a drawback claim form

5.4 Who must complete and sign the NOI and drawback claim form

5.5 What it means when you sign the NOI and drawback claim form

5.6 Where to send the completed Notice of Intention form and drawback claim form

6. Claiming drawback when dispatching goods from Northern Ireland to an EU country

6.1 What you need to do before dispatching goods from Northern Ireland to an EU country

6.2 When you can dispatch the goods

6.3 When you can submit the claim for drawback (or offset the drawback on your EX46 return)

6.4 Supporting evidence you need to submit with your drawback claim form

6.5 Special arrangements that apply when you dispatch goods from Northern Ireland to a private individual in an EU country (also known as ‘distance selling’)

7. Claiming drawback when exporting goods from the UK (other than dispatch from Northern Ireland to an EU country)

7.1 What you need to do before exporting goods outside the UK

Lodge the export declaration with HMRC

If you are exporting by post complete form C&E132

If the claim includes alcoholic or tobacco products

7.2 When you can export the goods

7.3 When you can submit the claim for drawback (or offset the drawback on your EX46 return)

7.4 The supporting evidence you need to submit with your drawback claim form

7.5 Special arrangements that apply when you export goods to a private individual outside the UK

8. Claiming drawback when warehousing goods for export

8.1 Definition of ‘warehousing for export’

8.2 What you need to do before warehousing goods for export

8.3 the information required on the warehousing advice note

Goods for export or dispatch to an EU country

Certificate of receipt

8.4 When you can send the goods to the warehouse

8.5 When you can submit the claim for drawback

8.6 The supporting evidence you need to submit with your drawback claim form

8.7 The evidence you need to show that the goods were subsequently exported or dispatched from the warehouse

Required wording for the statement for goods dispatched from Northern Ireland to an EU country

Required wording for the statement for goods exported outside the UK using CHIEF

Required wording for the statement for goods exported outside the UK using the Customs Declaration Service

8.8 Time limit for exporting or dispatching the goods following their receipt into the warehouse

8.9 Action required if the goods are not exported or dispatched from the warehouse within the specified time limit

9. Claiming drawback for planned destruction of goods

9.1 Condition of goods subject to a planned destruction claim

9.2 What you need to do before destroying goods

9.3 If we decide that my proposed method of destruction is not satisfactory

9.4 What you need to keep as evidence that the goods were destroyed

9.5 When you destroy the goods

9.6 When you can submit the claim for drawback (or offset the drawback on your EX46 return)