Notice

Notice 64: Spirits in imported goods — remission of excise duty

Updated 1 August 2023

1. General

1.1 Goods entitled to relief

This paragraph only applies in Northern Ireland to imports from outside the EU. For the rest of the UK this applies to imports from the EU and other countries.

Provided that the conditions laid down in this notice are met, relief from excise duty can be allowed on the importation of the following goods:

  • perfumed spirits, toilet and cosmetic preparations and raw materials containing ethanol, to produce any of these goods
  • paints
  • lacquers
  • dyestuffs
  • printing inks
  • all other composite goods which contain spirits and are not for human consumption

1.2 Goods not entitled to relief

The relief does not apply to:

  • personal importations (other than trade)
  • goods which are drinkable or edible or intended to be used in the making of drinkable or edible products
  • mixtures, compounds and other preparations containing spirits that are recognised by us as being used for medical purposes — however, these preparations may be allowed for importations without payment of spirits excise duty under Section 76 of the Finance (No. 2) Act 2023

You can get more information, including the arrangements for getting our acceptance of medical preparations, by contacting the excise and gambling duties enquiries team.

2. Conditions of relief

2.1 Conditions of relief

For goods to qualify for relief they must be unfit for human consumption. To do this a denaturant is added to the spirit content of the goods.

2.2 What a denaturant is

A denaturant is any substance that will make the product unfit for human consumption. We do not specify the various types of denaturant that must be in a product not for human consumption. If you have doubts whether a product is properly denatured, contact the excise and gambling duties enquiries team.

If you are importing denatured alcohol for use in manufacturing a product not for human consumption it must meet one of the UK denatured alcohol formulations. You can find details of the UK denatured alcohol formulations and how to import them in Production, distribution and use of denatured alcohol (Excise Notice 473).

2.3 If you do not satisfy the conditions for relief

If you claim relief but fail to satisfy the conditions in this notice, or make a false declaration, you may be fined and lose your goods.

3. Import procedure

3.1 The procedure at import

The goods should be declared in the usual way. Include the following for each description of goods:

For liquids:

  • the liquid quantity in each size or type of bottle or other container
  • the total liquid litres for each line, variety or description, calculated to 3 decimal places
  • the alcoholic strength by volume of each line
  • the total litres of ethanol calculated to 2 decimal places
  • the amount of spirits excise duty which would be due for relief
  • a declaration in box 47 (calculation of taxes) rate column by inserting the code ‘REM’ — this means that the goods are liable to excise duty, but relief is claimed

For other goods:

  • the net weight of the product in each size or type of bottle or other container
  • the total net weight in kilos for each line, variety or description, calculated to 3 decimal places
  • the spirit content of each line in litres of ethanol, calculated to 2 decimal places per 100kg of the product (rounded down to the nearest 0.05 litre of ethanol per 100kg)
  • the total litres of ethanol calculated to 2 decimal places
  • the amount of spirits excise duty which would be due but for relief
  • a declaration in box 47 (calculation of taxes) rate column by inserting the code ‘REM’ — this means that the goods are liable to excise duty but relief is claimed

3.2 The Customs declaration you should make

The Customs declaration must include a coded declaration which you or your authorised agent should insert in Box 44 (additional information). Where the statement needs additional information, for example the quantity and type of denaturant used, the details must be entered immediately after the appropriate code. The codes and their meanings are:

  • Revenue 10 — which declares that the goods are unfit for human consumption because of the presence of the constituent or constituents named in the proportion stated in Box 44
  • Revenue 11 — which declares that the goods are unfit for human consumption because of the presence of the constituent or constituents named in the proportion stated on the attached certificate

Only use the code ‘Revenue 11’ when a certificate of denaturing accompanies the entry. This certificate is issued by the Customs or Excise authority of the country of origin. It makes certain that the product obeys that country’s own requirements. This arrangement applies only to Community countries that have a denaturing requirement of their own.

Each certificate will be valid for 12 months. During this time the authorised importer may use a photocopy of the original certificate to support import entries for the same line.

4. Sampling

4.1 Whether HMRC will take samples of the goods

Our officers may take samples for test, to make certain the goods are entitled to relief. The size of each sample will not be less than 30 millilitres or, for non liquids, not less than 120 grammes. Two samples are normally taken, but we will need extra samples of aerosol containers.

4.2 Whether you can release the goods before testing is complete

You can release the goods before the result of the sampling is known. You must however, normally pay a deposit to cover the spirits duty that would otherwise be due, and also any VAT due at importation.

When previous samples of the goods were taken with satisfactory results, our officer may allow release of the goods without asking for a deposit.

5. Review and appeal procedures

5.1 If you disagree with any decision HMRC makes 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 civil penalty
  • a decision specifically connected to the relevant duty

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

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

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

5.2 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 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.

5.3 What you must include in your request for 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.

5.4 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.

5.5 Where you can get more information

Find out more information about:

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

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.

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