Notice

Loading of excise goods as aircraft, ship and train stores

Updated 23 August 2023

1. Introduction

1.1 What this notice is about

This notice sets out HMRC’s policy on the loading of excise goods as ship and aircraft stores following the enactment of the Excise Goods (Aircraft and Ship’s Stores) Regulations 2015. The regulations now also apply to trains, so they set out HMRC’s policy on the loading of excise goods for use as stores on board trains travelling to an immediate destination outside Great Britain (England, Scotland and Wales) through the Channel Tunnel (such as Eurostar and Eurotunnel services). It should be read by:

• ships’ masters
• ship owners
• aircraft operators
• train managers
• shipping agents
• airline agents
• rail agents
• warehousekeepers
• other persons concerned with the shipping or supply of excise goods for use as stores

This notice sets out the policy and procedures on:

• loading excise goods as stores before leaving a UK port, airport or railway station or terminal on a journey specified in this notice
• shipping and carrying new stores in the UK
• the conditions and procedures for obtaining the authorisation to ship or carry excise goods as stores without payment of duty or on drawback for certain aircraft or train journeys and for cruise ships undertaking UK cruises or holding special events in port
• supplying excise goods out of duty-free stores and duty-paid stock (merchandise) from on board shops, trains and aircraft to passengers and crew
• what to do upon arrival in a Great Britain port, airport or railway station or terminal from a destination outside the UK, or an Northern Ireland port or airport from a destination outside both the UK and the EU, with surplus stores on board

1.2 Scope

The requirements, procedures, conditions and restrictions detailed in this notice only apply to ships, aircraft and trains whilst in UK territory. This includes UK territorial waters and airspace. They also only relate specifically to excise goods as stores, in other words alcohol and tobacco products.

1.3 UK law

Section 60A of The Customs and Excise Management Act 1979 (CEMA) provides the commissioners with the power to make regulations concerning ship, aircraft and train stores.

Section 39 of CEMA allows surplus stores to remain on board a ship or aircraft without payment of duty. Such goods will have the status of surplus stores.

The Excise Goods (Aircraft and Ship’s Stores) Regulations 2015 (ASSR) came into force on 1 April 2015.

These regulations provide that:

• excise goods (excluding fuel) may be shipped or carried for use as stores on a ship, aircraft or train in such circumstances as the commissioners may specify in a published notice
• in such circumstances as the commissioners may specify in a published notice, authorisation must be obtained before any excise goods are shipped or carried as stores without payment of duty or on
• the application for authorisation to ship or carry excise goods as stores must be made on a form detailed in this notice
• the supply, shipping or carriage of excise goods as stores is subject to any conditions or restrictions which the commissioners may specify in a published notice
• duty must be paid on excise goods consumed on an aircraft on a journey of a description specified by the commissioners as published in a notice, on board a ship in a port in the UK or on board a train in the UK in circumstances specified in a notice
• the commissioners may publish in a notice circumstances when goods are to be treated as consumed on a journey, in port or on board a train in the United Kingdom

The primary legal provisions that apply to this notice are:

• Customs and Excise Management Act 1979 (CEMA)
• Aircraft (Customs and Excise) Regulations 1981 (ACER)
• Ship’s Report, Importation and Exportation by Sea Regulations 1981 (SI 1981 No. 1260) (SRIES)
• Excise Goods (Sales on Board Ships and Aircraft) Regulations 1999 (SI 1999 No. 1565) (SOBSA)
• Excise Warehousing (etc) Regulations 1988 (SI 1988 No. 809) (EWER)
• Territorial Sea Act 1987 (SI 1987 No. 49) (TSA)
• Revenue Traders (Accounts and Records) Regulations 1992 (SI 1995 No. 2518) (RTAR)
• Travellers’ Allowances Order 1994 (SI 1994 No. 955) (TAO)
• Value Added Tax Regulations 1995 (SI 1995 No. 2518) (VATR)
• Excise Goods (Aircraft and Ship’s Stores) Regulations 2015 (SI 2015 No 368) (ASSR)

HMRC is currently reviewing the existing legislation for stores to ensure it support legitimate businesses and provides adequate controls to prevent and address non-compliance. Where required, HMRC will consult with businesses before changes are made.

1.4 Definition of stores

The Customs and Excise Management Act 1979 defines stores as ‘goods for use in a ship or aircraft and includes fuel and spare parts and other articles of equipment, whether or not for immediate fitting’.

They are usually duty-free goods:

• for use on an ‘entitled’ ship, aircraft or railway vehicle, which arrives from, or leaves for a destination outside the UK
• sold by retail to passengers or crew to take away on a voyage from Great Britain to a destination outside the UK or from Northern Ireland to a destination outside both the UK and the EU

Although these goods may be shipped free of customs duty and excise duty, they may still be liable to VAT as explained in VAT on goods exported from the UK (VAT Notice 703).

Once goods are given the status of stores (on release from warehouse or on arrival as surplus stores), this status cannot be changed in the UK without prior authorisation from HMRC.

1.5 Goods classified as stores

There are 2 types of goods that can be loaded as stores, they are:

• consumable goods, including:
  • tobacco products (including cigarettes, cigarillos, cigars, hand-rolling tobacco, other smoking tobacco and chewing tobacco)
  • alcoholic drinks such as spirits, wine and beer
  • food and drink
  • fuel, lubricants, cleaning materials and paint
  • clothing and toiletries (these can include items crewmembers might be expected to use while at sea)
  • reasonable quantities of controlled drugs (which must form a genuine part of the ship’s medical supplies for use on the journey)
• non-consumable goods, known as ‘Commissary Goods’, including:
  • cutlery
  • napkins
  • tissues
  • slippers
  • giveaway packs supplied free of charge to passengers

However, for the purposes of this notice, when we use the word ‘stores’ we are referring to excise goods only (excluding fuel), unless otherwise stated.

1.6 Drawback

Where excise goods are loaded duty-paid, you may be entitled to claim excise duty drawback. You can find more information in Excise duty drawback (Excise Notice 207).

1.7 Controls and checks

HMRC carry out the procedural controls detailed in this notice, as well as additional risk-based controls that may include inland checks on business records.

Border Force may also carry out physical controls on board ships, aircraft and trains.

1.8 Crew members

For the purposes of stores, there are no separate rules or allowances for crew members. They must follow the same rules and procedures in place for passengers. More information on these procedures can be found in our UK Customs information leaflet.

1.9 Review and appeals procedure

When we make a decision that you can appeal against, we’ll tell you and offer you a review. We’ll 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’ll usually have 3 options. Within 30 days you can:

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

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

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’ll 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’ve 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’ll ask you whether you’re 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’ll write and tell you this; you then have 30 days from the date of that letter to ask the tribunal to hear your case. Your request should set out clearly the full details of your case, the reasons why you disagree with us and provide any supporting documentation. You should also state what result you expect from our review.

If you do not want a review you may appeal to the independent tribunal. You need to send your appeal to the Tribunals Service within 30 days of the date on the decision letter.

Find out more information about:

• what to do if you disagree with an HMRC decision
• how to appeal to the tax tribunal

2. Aircraft — loading excise goods as stores in the UK

2.1 Types of aircraft entitled to carry duty-free stores

Any aircraft undertaking an entitled journey from the UK is eligible to load and carry duty-free excise goods as stores in and from the UK assuming they can meet the conditions of this notice.

2.2 Entitled journeys

An entitled journey is a journey for which duty-free stores may be loaded at a ‘Customs and Excise’ airport:

• for consumption on board — on any direct flight with a destination outside the UK
• for consumption on board — on a multi-leg international flight on any one day that includes at least one leg wholly within the UK (prior authorisation must be given and the duty must be paid on goods consumed on the intra UK leg)
• for retail sale to take away (not consumed on board) — on any direct flight from Great Britain to a destination outside the UK or from Northern Ireland to a destination outside both the UK and the EU
• for any other types of journeys stores can still be loaded but these must be duty-paid goods — this includes all domestic journeys, those to the Isle of Man and journeys between Northern Ireland and the EU (for ‘take away’ sales)

2.3 When authorisation is required to load stores

You’ll require authorisation from HMRC to load duty-free stores that will be consumed during a multi-leg international flight where at least one leg is wholly within the UK. Read paragraph 2.8 for more information.

You do not need permission from HMRC to acquire or load duty-free stores for any other entitled journeys. Find out the procedure to follow in Excise Notice 197b: excise goods — aircraft store floors.

2.4 Where duty-free stores can be obtained

Any approved excise warehouse can supply duty-free goods for use as stores, unless it is specifically excluded in the warehouse authorisation.

Due to the security controls at airports, it is often impractical to obtain stores from warehouses located outside the airport. HMRC specifically authorise warehouses within airports to supply aircraft under the Aircraft Store Floors procedures. More information is available in Excise Notice 197b: excise goods — aircraft store floors.

2.5 Procedure to follow when applying for aircraft stores

You should follow the procedure detailed in Excise Notice 197b: excise goods — aircraft store floors.

2.6 Bar boxes

Bar boxes are boxes making up a complete bar-set that is used for transporting stores. Each box must carry a mark or number to identify it to a bar-set. The boxes must be specifically constructed so they’re secure when closed and it is possible to apply a seal.

Excise Notice 197b: excise goods — aircraft store floors has more information on when and how bar boxes must be used.

2.7 Aircraft servicing work points

Helicopters servicing work points may only carry duty-free stores in the following circumstances. Helicopters which are:

• servicing a work point outside ‘the Box’ are permitted all stores including alcohol and tobacco products
• servicing a work point within the ‘Box’, but outside the UK territorial sea, are permitted:
  • fuel and lubricants
  • aircraft spares and other stores necessary for the functioning of the aircraft
  • medical supplies for use on the flight
  • foodstuffs, but excluding alcohol and tobacco products
• leaving for a non-UK airport, direct or by way of a work point within the ‘Box’, are permitted all stores including alcohol and tobacco products

Refer to the glossary for definitions of the ‘Box’ and ‘UK territorial sea’.

2.8 Multi-leg journeys

Where any aircraft is going to undertake a multi-leg international flight that includes at least one leg wholly within the UK, you may still load and carry duty-free stores with prior approval. For example, if an aircraft itinerary during 1 day is as follows, you are entitled to load and carry duty-free stores:

Leg 1 — London to Paris
Leg 2 — Paris to Manchester
Leg 3 — Manchester to Glasgow

Any excise goods consumed during the Manchester to Glasgow leg must have the duty paid as it is wholly within the UK. Within 15 days of the end of the journey you must make payment using the details in paragraph 2.18.

To load duty-free stores for use in this scenario, you must be approved by HMRC by writing to the National Clearance Hub — read paragraph 3.5. You must provide details of the multiple legs including any wholly within the UK and explain how you’ll identify goods used in the territory of the UK.

You may apply for 2 types of approval:

• approval for a single journey during one day
• approval for a set period covering multiple flights over multiple days — for example, an airline winter or summer schedule

2.9 Restrictions on quantity

Regulation 10 of ASSR allows HMRC to limit the quantities supplied.

You must only load sufficient stores for the flights being undertaken.

2.10 Obtaining stores from an EU member state for loading in the UK — this paragraph applies to Northern Ireland only

The relief from UK excise duty may only be granted by the provisions of UK law. This means any goods obtained outside the territory of the UK must be imported to a UK warehouse in duty suspension — read Receive goods into and remove goods from an excise warehouse (Excise Notice 197). Once the movement has been completed the goods may be removed from the UK warehouse under the procedures detailed in paragraph 2.5.

2.11 Supplying stores in the UK for loading in an EU member state — this paragraph applies to Northern Ireland only

The legislation covering aircraft stores only applies in the UK so we cannot authorise stores to be loaded in an EU member state. Refer to Receive goods into and remove goods from an excise warehouse (Excise Notice 197). Any goods would have to be moved from the UK to another warehouse in an EU member state. Procedures in that member state must then need to be followed to load the goods as stores.

2.12 Definition of surplus stores

Surplus stores are any stores that remain unused at the end of a journey. This is regardless of whether they were loaded in the UK or in another country.

Depending on the arrangements in place when the goods were loaded, surplus stores may be either duty-paid or duty-free. These goods are simply classed as stores and are only permitted to be used as stores in future while in the UK.

Any goods considered to be surplus stores must not be put to any other use within the UK without permission from HMRC.

2.13 Arriving at a UK airport with surplus stores

Aircraft commanders are required to declare all surplus stores that are on board the aircraft when it lands at a UK airport whether or not the goods are to remain on board Quick Turn Round (QTR) or the goods are to be removed from the aircraft for warehousing for future use as stores. You should use form Excise warehousing: stores list for aircraft inwards and entry for warehousing (C209) or a commercial equivalent document for this purpose.

If you unload goods from your aircraft at any place in the UK without our proper authority, all the goods may be liable to forfeiture and you, as the commander, may be required to pay a financial penalty. Any undeclared stores may also be seized.

2.14 When an aircraft is deemed to have arrived at a UK airport

An aircraft is considered to have arrived when it lands.

2.15 Control of surplus stores on arrival

Providing you have properly declared your surplus stores on form Excise warehousing: stores list for aircraft inwards and entry for warehousing (C209) on arrival in the UK, you have the following options.

Keep any surplus stores on board

All surplus stores will remain under HMRC control while your aircraft remains at the UK airport but the aircraft operator is still responsible for their security. You should secure all duty-free alcohol and tobacco on board while in a UK airport.

Landing surplus stores

You may remove surplus stores for warehousing in a customs or excise warehouse for future use as stores.

The procedure to follow for excise goods is detailed in Excise Notice 197b: excise goods — aircraft store floors.

You cannot transfer surplus stores directly to another aircraft.

2.16 Using stores in the territory of the UK

Stores are intended for use on board an aircraft during a journey to an airport outside the UK. As a general rule you must not use stores while located in the territory of the UK, however the following exceptions apply:

(a) After leaving a UK airport going directly to a destination outside the UK you may start to use stores once passengers start to board the aircraft. Only travelling passengers and crew are entitled to stores.

(b) Until the aircraft has arrived at a UK airport from a destination outside the UK, stores may be used until the aircraft lands.

(c) Where an aircraft lands at an intermediate airport, and then continues its inward flight to the final airport in the UK, you may use stores until the aircraft arrives at the final airport.

(d) Where an aircraft departs for a destination outside the UK, by way of an intermediate airport, you may start to use stores from the initial departure.

(e) Multi-leg international flight where at least one leg is wholly within the UK — read paragraph 2.8

You may only use duty-free stores under sub-paragraphs (c) and (d) if all passengers are either arriving from or leaving for a destination outside the UK.

2.17 Payment of excise duty for aircraft stores

Where excise goods are consumed on a multi-leg international flight where at least one leg is wholly within the UK under paragraph 2.8, the excise duty must be paid on the goods consumed during the UK leg within 15 days of the current month when the journey takes place under Regulation 12 of ASSR. Payment must be submitted on form W50 and emailed to salford.nwpu@hmrc.gov.uk.

Payment should be made by Bacs (Bankers Automated Clearing System) to:

• sort code — 20 05 17
• account number — 30336491
• account name — HMRC Indirect Misc. Receipts

Your payment reference number should be prefixed with ‘NWPU’ and clearly written on the W50. Form W50 is not available to be downloaded but you can order supplies from excise and gambling duties enquiries.

You should make the payment and submit the W50 on the same day. This helps us to associate the payment quicker with the W50.

2.18 Abandoned journeys

There may be occasions when you must return to the UK without reaching your original destination. Each case will be considered on the circumstances which have caused the journey to be abandoned but the following table sets out the general rules.

If the flight is abandoned due to an unavoidable cause

There may be occasions when you must return to the UK without reaching your original destination (such as, severe weather, mechanical defect or any other unavoidable cause). If, after taking account of the time between the aircraft’s departure and return, we decide the use of stores is:

• unreasonable, we may charge you, as commander, with excise duty on the portion of used stores we consider excessive
• reasonable, we’ll not charge any duty

If the flight is abandoned due to an avoidable cause

If you return to the UK without reaching the intended destination, we’ll charge you, as aircraft commander, with excise duty on all stores used during the journey.

2.19 Diverted flights

If a flight is diverted due to unforeseen circumstances, the aircraft operator can arrange removal and transport of bar boxes between the diverted aircraft and the aircraft store floor at the base airport. The completed form Excise warehousing: stores list for aircraft inwards and entry for warehousing (C209) or equivalent document must travel with the goods.

If you need to receive new stores, and are entitled to load them, the aircraft operator must follow the normal procedure, ensuring that the Shipping bill and stores list for aircraft outwards (C208) form or equivalent is endorsed and returned to the dispatching warehouse keeper as proof of export.

2.20 Retail sale to take away

Stores are loaded for use during an entitled journey, however where an aircraft is undertaking a journey from Great Britain to a destination outside the UK, or from Northern Ireland to a destination outside both the UK and the EU, the aircraft operator may sell excise duty-free stores to passengers and crew to be taken away at the end of a journey.

Where passengers and crew are returning to the UK, they’ll be subject to the rules and allowances for travellers.

3. Ships — loading excise good as stores in the UK

3.1 Types of ships entitled to carry stores

Any ship undertaking an entitled journey is eligible to load and carry duty-free excise goods as stores in the UK.

3.2 Entitled journeys

An entitled journey is a journey where duty-free stores are loaded:

• for consumption on board — any journey with a destination to a port outside the UK
• for consumption on board — any journey to an area of water outside the ‘Box’ without arriving at a port outside the UK — read paragraph 3.10.5
• for consumption on board — on a domestic cruise (around the UK, including the Isle of Man) when prior authorisation is obtained from HMRC, although duty must subsequently be paid on any goods consumed — read paragraph 3.15
• for retail sale to take away — a journey from Great Britain to a destination outside the UK or from Northern Ireland to a destination outside both the UK and the EU
• for retail sale to takeaway — on a cruise which includes at least one stop in a port outside the territory of the UK.

For cruises starting in Northern Ireland, this non-UK port of call must be outside the EU.

For any other types of journeys, stores can still be loaded but these must be loaded duty-paid.

Ships must have prior authorisation from HMRC to load stores in the UK for all entitled journeys.

The procedure for applying for stores is covered in paragraph 3.5.

3.3 Types of authorisation

Any authorisation issued by the commissioners may be for:

• a single journey of a description specified in the authorisation
• such a period as the commissioners may specify in the authorisation

3.4 Where duty-free stores can be obtained

Any approved excise warehouse can supply duty-free goods for use as ships stores, unless it is specifically excluded in the warehouse authorisation.

3.5 Procedure to follow when applying for ship stores

Where a master requires new duty-free stores from an excise warehouse to be loaded in a UK port, the master or an agent acting on their behalf must make an application to load new stores on the Stores authority for spirits and tobacco products (C945) form.

A concessionaire operating on board a ship may apply for approval to load stores, if they have the approval of the vessel’s operator.

Where this happens, the concessionaire should submit a letter of authority from the vessel’s operator with their C945 to the National Clearance Hub

Any application for new stores must be made at least 24 hours before the journey starts.

Once the National Clearance Hub has authorised the Stores authority for spirits and tobacco products (C945) form, this should be presented to an excise warehousekeeper as authority to remove duty suspended goods as stores. A copy of the form must be retained by the warehousekeeper for any future audit control by HMRC.

The warehousekeeper must also complete commercial documentation for removal of goods and ensure a financial security is in place to cover the movement from the warehouse. You can find more information in paragraph 14.4 of Receive goods into and remove goods from an excise warehouse (Excise Notice 197).

3.6 Restrictions on quantity

The commissioners may restrict the amount of duty-free excise goods which may be carried as stores to an amount that they consider necessary for the journey.

Each request for stores should cover the quantities required for a specified journey. As a guide, HMRC suggests the following recommended quantities for each crew member per day.

Product	Quantity allowable
Tobacco products (one of the following)	• 40 cigarettes • 12 cigarillos • 6 cigars • 30 grams of tobacco
Spirits	0.185 litres
Wine	1.5 litres

Where requests exceeds these quantities, you must explain why duty-free stores in excess of this are required and how they’ll be consumed on the journey specified.

HMRC may also take into consideration:

• the level of surplus stores held on board on arrival at the UK port (if necessary)
• the intended journey
• the number of crew or passengers
• any other relevant facts

Cruise ships and passenger ferries may use a similar formula to establish their requirements as long as the quantities are reasonable.

3.7 Obtaining stores from an EU member state for loading in the UK — this paragraph applies to Northern Ireland only

The relief from UK excise duty may only be granted by the provisions of UK law. This means any goods obtained outside the territory of the UK must be imported to a UK warehouse in duty suspension. Read Receive goods into and remove goods from an excise warehouse (Excise Notice 197). Once the movement has been completed the goods may be removed from the UK warehouse under the procedures detailed in paragraph 3.5.

3.8 Supplying stores in the UK for loading in an EU member state — this paragraph applies to Northern Ireland only

The legislation covering ships stores only applies in the UK so we cannot authorise stores to be loaded in an EU member state — read Receive goods into and remove goods from an excise warehouse (Excise Notice 197). Any goods would have to be moved from the UK to another warehouse in an EU member state. Procedures in that member state must then be followed to load the goods as stores.

3.9 Special arrangements for specific types of ship

HMRC considers that a cruise involves the transport of passengers by sea to intermediate ports of call where they may disembark for short periods for shopping and sightseeing whereas a ferry is a means of transport carrying passengers or freight between points A and B.

3.10.1 Cruise ships

For the purposes of establishing any liability to excise duty HMRC has defined 3 classifications of cruise.

1. Intra-UK

These cruises do not call at any port other than those situated in the UK. Duty-free stores can be loaded for these journeys but the quantities consumed must be duty-paid under the arrangements in paragraph 3.15 using Form W50.

2. International cruises starting in Great Britain

These cruises must include at least one call to a port outside the UK. Excise duty-free stores may be loaded for consumption on board during the journey and for retail take away. If the ship is to return to a UK port at the end of the cruise the passengers must have had the opportunity to disembark and make a purchase at the EU port(s) located outside the UK. The excise goods retain their duty-free status at the end of the voyage.

On arrival in the Great Britain from an international cruise, passengers and crew will be subject to the rules and any relevant allowances for travellers as detailed in Notice 1 UK Customs Information.

3. International cruises starting in Northern Ireland

These cruises must include at least one call to a port outside both the UK and EU. Excise goods can be loaded duty-free for consumption on board during the journey and also for retail take away. However, if the only non-UK ports of call are in the EU, such goods may be loaded for consumption on board, but anything loaded for retail sale for takeaway must be duty- paid. Stores may be loaded for consumption on board in bars and restaurants. Any goods purchased from shops to take away must be sold under the Registered Mobile Operator procedures detailed in Excise Notice 202.

If the ship is to return to a UK port at the end of the cruise the passengers must have had the opportunity to disembark and make a purchase at the non-EUUK port. The excise goods retain their duty-free status at the end of the voyage.

If the cruise includes a call at a non-EU port, then on arrival in the UK, passengers and crew will be subject to the non-EU allowances. If the cruise purely calls at EU ports, then on arrival in Northern Ireland passengers will be subject to the rules and allowances for travellers specific to EU travellers.

Where a cruise ship calls at multiple UK ports as part of a wider international itinerary, the bars and restaurants may continue to serve excise duty-free stores throughout the cruise. This is on the condition that the only passengers and crew are allowed on board are those travelling on an entitled journey outside the UK.

3.10.2 Ferry services

The procedures shown in paragraph 3.5 apply when loading duty-free stores onto a ferry. However for regular ferry services HMRC may consider approving the operator to use an on-going authorisation. Where this is required, you’ll need to provide details of how you’ll operate to the National Clearance Hub — Ships Reports Team.

3.10.3 Fishing vessels

A fishing vessel is only entitled to load excise duty-free stores if they’ll travel directly to a port outside the UK or they’ll be fishing on grounds outside the ‘Box’ (refer to the glossary). Fishing vessels operating within the ‘Box’ are not entitled to load stores free of excise duty.

3.10.4 Ships servicing work points

Ships servicing work points may only load duty-free stores for consumption in the following circumstances. Ships which are:

• servicing a work point outside ‘the Box’ are permitted all stores including alcohol and tobacco products
• servicing a work point within the ‘Box’, but outside the UK territorial sea, are permitted:
  • fuel and lubricants
  • aircraft spares and other stores necessary for the functioning of the aircraft
  • medical supplies for use on the flight
  • foodstuffs, but excluding alcohol and tobacco products
• leaving for a non-UK airport, direct or by way of a work point within the ‘Box’, are permitted all stores including alcohol and tobacco products

Refer to the glossary for definitions of the ‘Box’ and ‘UK territorial sea’.

3.10.5 The ‘Box’

Duty-free stores may be loaded in the UK if the journey is to a location outside the ‘Box’, even if the ship does not call at a port outside the UK.

You are not entitled to load any duty-free stores for any journey within the ‘Box’ where the ship does not visit a port outside the UK.

3.11 Arriving at a UK port with surplus stores

Surplus stores are any stores that remain unused at the end of a journey. This is regardless of whether they were loaded in the UK or in another country.

Depending on the arrangements in place when the goods were loaded, surplus stores may be either duty-paid or duty-free. These goods are simply classed as stores and are only permitted to be used as stores in future while in the UK.

Any surplus stores must not be put to any other use within the UK without permission from HMRC.

3.12 Arriving at a UK port

On arrival at the port, the ships master must ensure that all excise goods held onboard as stores are held securely under lock and key on board until the ship departs, or they are moved immediately to an excise warehouse.

Although a surplus stores declaration (C95) form is no longer required on arrival, ships masters must produce an accurate stores account of all excise goods that are held as stores on board their ship when requested.

This account must include the following information (although it may be kept in a format that suits the operational needs of the ship):

• accurate descriptions
• accurate quantities
• physical location on board the ship

This must be available for immediate production at the request of Border Force or HMRC officers and applies to all ships, including fishing vessels.

Providing these stores remain on board and are re-exported on the next voyage to a port outside the UK or are landed and warehoused to an excise warehouse for subsequent export as ship’s stores they’ll retain their status as stores.

3.13 When a ship is deemed to have arrived at a UK port

For the purposes of ships stores, HMRC consider a ship has arrived at a port once it arrives alongside the berth or where the vessel remains at anchor.

3.14 Control of surplus stores on arrival

Providing you have properly completed a stores account on arrival in the UK, you may use the following procedures.

Keep any surplus stores on board

All surplus stores will remain under HMRC control while your ship remains in the UK port or territorial waters, but the ship’s master is still responsible for their security. You should secure all duty-free alcohol and tobacco on board while in a UK port in a lockable storeroom, cupboard, locker or other permanent fixture ensuring the goods are not accessed.

Landing surplus stores

You may remove surplus stores:

• for warehousing in a customs or excise warehouse for future use as ship’s stores
• as a transfer of stores to another outbound ship within the same port, providing:
  • the ship is entitled to carry duty-free stores
  • the transferred stores are not excessive for the journey about to be undertaken
  • you hold a copy of the Stores authority for spirits and tobacco products (C945) approval for the new ship to load new stores before making the transfer

3.15 Using duty-free stores in the territory of the UK

Duty-free stores are intended for use on board a ship during an entitled journey. As a general rule you must not use duty-free stores while located in the territory of the UK, however the following exceptions may apply:

After leaving a UK port

For ships stores we consider a ship to have left the UK when it leaves the berth on a direct route to a port outside the UK. Any stores held on board (new and surplus) must remain secured until the ship has left the berth to commence its journey to its destination.

Where a ship on an entitled journey departs for a non-UK port but travels through another UK port, stores may be used between the 2 UK ports. This is only allowable on the condition that all passengers and crew on board are travelling to a destination outside the UK.

For example, if a voyage departs from Southampton for the USA, but travels through Liverpool, if passengers are able to board at Southampton and then disembark at Liverpool this will be considered to be a separate domestic journey. No stores can be used between Southampton and Liverpool without prior permission and the payment of UK duty.

Until the ship has arrived at a UK port from a port outside the UK

For ships stores we consider a ship to have arrived at a UK port when it arrives at the berth. Ships may use stores up until this point but must ensure they are adequately secured on arrival.

Where a ship arrives from a non-UK port, but calls at an intermediate UK port prior to its final destination in the UK, the ship may continue to use stores until it arrives at its final destination. This is only allowable on the condition that all passengers on board are arriving from a destination outside the UK.

For example, if a voyage arrives in Liverpool from the USA and then travels to Southampton and then on to France, if the ships allows passengers to board at Liverpool and disembark at Southampton this leg of the journey is considered to be a separate domestic journey within the UK. No stores can be used between Liverpool and Southampton without prior permission and the payment of UK duty.

Working crews of commercial ships in port

Stores must be secured on arrival into the UK, however where crew live on board the ship they may be issued with an allocation of stores for use while the ship is in port. It is the master’s responsibility to ensure that any amounts issued to crew members are reasonable for the length of stay within the UK. Crew members must also understand they’ll be subject to the rules and allowances for travellers if they land stores. The stores should be issued to the crew prior to them being secured on arrival at the berth.

Once passengers start boarding for an entitled journey on board a ferry or cruise ship

Where a cruise ship or ferry is departing on an entitled journey, the ship operator may start to sell stores for consumption on board once the passengers start to board. However, they must not sell stores for retail take away until the ship has left the port.

Cruise ships when undertaking a domestic UK cruise, on payment of duty

Intra-UK cruise ships may load stores under the normal rules but must pay excise duty on all excise goods consumed during the voyage using the W50 system.

At the end of any such journey the operator must calculate the duty payable on the goods consumed in the UK and make payment to HMRC. Payment details can be found in paragraph 3.18.

Special events in port

Where a cruise ship or ferry operator wants to hold a special event in a UK port for non-travelling dignitaries or other persons, we may allow them to use surplus stores if the UK duty is paid on the stores consumed after the event has taken place.

This also applies where a cruise ship or ferry is used to provide accommodation without a journey taking place immediately after passengers board.

The amount of stores consumed in port will be treated as the greater of:

• the amount of stores actually consumed
• the difference between the amount of stores on board the ship before the event less the amount of stores on board after the event

Any company using this facility must have prior approval from the National Clearance Hub — Ships Reports Team.

Payment details are shown in paragraph 3.18.

3.16 Abandoned journeys

There may be occasions when you must return to the UK without reaching your original destination. Each case will be decided on the circumstances which have caused the voyage to be abandoned but the following matrix sets out the general rules.

If the is journey is abandoned due to an unavoidable cause

If the ship has failed to make landfall at all or any of the ports scheduled on the itinerary due to an unavoidable cause (such as severe weather, mechanical defect, illness of passengers or any other cause which could not have been foreseen before the ship sailed), we may decide that the use of stores between the ship’s departure and its return is:

• reasonable, in which case we’ll not charge any duty
• unreasonable, in which case, when the stores account is made on return to the UK, we may charge you, as master, with excise duty on the excess deficiency

If the is journey is abandoned due to an avoidable cause

If you return to the UK without reaching the intended destination due to an avoidable cause, we’ll charge you, as the master, with excise duty on all deficiencies in your shipped stores. This would cover the case of a ship intending to operate a non-UK itinerary sailing with the full knowledge that it would not be possible to reach that destination.

3.17 Retail sale for take away

Duty-free stores are generally loaded for use during an entitled journey. However, on some entitled journeys, stores may also be sold to passengers and crew to be taken away at the end of a journey. Read section 3.2.

Where a ship intends to sell goods on board for retail take away on journeys between Northern Ireland and the EU, they must operate under the Registered Mobile Operator procedures set out in Excise Notice 202: registered mobile operators.

Where passengers are returning to the UK, they’ll be subject to the rules and allowances for travellers.

3.18 Payment of duty for ship stores

Where stores are consumed on a domestic cruise or during an event in port under paragraph 3.15 the duty must be paid on the goods consumed within 15 days of the current month when the event or journey takes place under Regulation 12 of ASSR. Payment must be submitted on form W50 and emailed to salford.nwpu@hmrc.gov.uk.

Payment should be made by Bacs to:

• sort code — 20 05 17
• account number — 30336491
• account name — HMRC Indirect Misc. Receipts

Your payment reference number should be prefixed with ‘NWPU’ and clearly written on the W50. Form W50 is not available to be downloaded but you can order supplies from excise and gambling duties enquiries.

You should make the payment and submit the W50 on the same day. This helps us to associate the payment quicker with the W50.

4. Trains — loading excise good as stores in the UK

4.1 Types of trains entitled to load stores

Any train undertaking an entitled journey is eligible to load and carry duty-free stores in the UK.

4.2 Entitled journeys

An entitled journey is a journey where duty-free stores may be loaded at an international railway station or terminal:

• for consumption on board — on any direct journey with an immediate destination outside the UK
• for retail sale to take away (not consumed on board) — on any direct journey where the train travels to an immediate destination outside Great Britain through the Channel Tunnel.

Train managers must have prior authorisation from HMRC to load duty-free excise goods in the UK for all entitled journeys.

The procedure for applying for stores is covered in paragraph 4.5.

4.3 Types of authorisation

Any authorisation issued by the Commissioners may be for:

• a single journey of a description specified in the authorisation
• for such a period as the Commissioners may specify in the authorisation

4.4 Where stores can be obtained

Any approved excise warehouse can supply duty-free excise goods for use or sale on board trains on entitled journeys, unless it is specifically excluded in the warehouse authorisation.

4.5 Procedure to follow when applying to load duty-free stores

When a train manager wants to load duty-free stores from an excise warehouse in the UK, the train manager or an agent acting on their behalf must make an application to load stores on the Stores authority for alcohol and tobacco products on a train (form C945T).

Any application must be made at least 24 hours before the journey starts.

Once the National Clearance Hub has authorised the Stores authority for alcohol and tobacco products on a train (form C945T), this should be presented to an excise warehousekeeper as authority to remove duty suspended goods for loading as duty-free on an entitled journey. A copy of the form must be retained by the warehousekeeper for any future audit control by HMRC.

The warehousekeeper must also complete commercial documentation for removal of goods and ensure a financial security is in place to cover the movement from the warehouse. You can find more information in paragraph 14.4 of Receive goods into and remove goods from an excise warehouse (Excise Notice 197).

4.6 Restrictions on quantity

The Commissioners may restrict the amount of excise goods which may be carried to an amount that they consider necessary for the journey. Each request should cover the quantities required for a specified journey. HMRC may take into consideration when deciding whether to grant the request:

• the level of duty-free excise goods already held on board upon arrival in the UK (if necessary)
• the intended journey
• the number of crew or passengers
• any other relevant facts

4.7 Train services

The procedures found in paragraph 4.5 apply when loading duty-free stores onto a train. However, for regular trains services HMRC may consider approving the use of an on-going authorisation. Where this is required, you’ll need to provide details of how you’ll operate to the National Clearance Hub — Ships Reports Team.

4.8 Arriving at a UK railway station or terminal with surplus stores

In relation to trains, surplus stores are any alcohol or tobacco products that remain unused at the end of a journey. This is regardless of whether they were loaded in the UK or in another country.

Depending on the arrangements in place when the goods were loaded, surplus stores may be either duty-paid or duty-free. These goods are simply classed as stores and are only permitted to be used as stores in future while in the UK.

Any surplus stores must not be put to any other use within the UK without permission from HMRC.

4.9 Arriving at a UK railway station or terminal

On arrival at the station or terminal, the train manager must ensure that all surplus stores are held securely under lock and key on board until the train departs, or they are moved immediately to an excise warehouse.

Although a surplus stores declaration is not required on arrival, the train manager must produce an accurate stores account of all excise goods that are held as stores on board their train when requested.

This account must include the following information (although it may be kept in a format that suits the operational needs of the train):

• accurate descriptions
• accurate quantities
• physical location on board the train

This must be available for immediate production at the request of Border Force or HMRC officers and applies to all trains eligible to load stores.

Providing these stores remain on board and are re-exported on the next journey outside of the UK, or are landed and warehoused to an excise warehouse for future use as stores, they’ll retain their status as stores.

4.10 Control of surplus stores on arrival

Providing you have properly completed a stores account on arrival in the UK, you may use the following procedures.

Keep any surplus stores on board

All surplus stores will remain under HMRC control while your train remains in UK territory, but the train manager is still responsible for their security. You should secure all duty-free alcohol and tobacco on board while in a UK station in a lockable storeroom, cupboard, locker or other permanent fixture ensuring the goods are not accessed.

Landing surplus stores

You may remove surplus stores for warehousing in a customs or excise warehouse for future use on board a train taking an entitled journey

4.11 Using stores in the territory of the UK

Duty-free stores are intended for use on board a train during an entitled journey to a destination outside the UK through the Channel Tunnel. As a general rule you must not use duty-free stores while located in the territory of the UK, however the following exceptions may apply.

After leaving a UK railway station or terminal on an entitled journey going directly to a destination outside the UK

We consider a train to have left the UK when it leaves the station or terminal on a direct route to a station or terminal outside the UK. Any stores held on board (new and surplus) must remain secured until the train has left the UK station or terminal to commence its journey to a destination outside the UK.

Where a train departs for a non-UK station but travels through another UK station, stores may be used between the 2 UK stations. This is only allowable on the condition that all passengers and crew on board are travelling on an entitled journey to an immediate destination outside the UK.

For example, if a train departs from St Pancras for Paris Gare Du Nord, but stops at Ashford International, if passengers are able to board at St Pancras and then disembark at Ashford International this will be considered to be a separate domestic journey. No stores can be used between St Pancras and Ashford International without prior permission and the payment of UK duty. However, if a train carries out the same journey and passengers may only get on at Ashford International but not disembark, stores may be used from the time the train leaves St Pancras.

Until the train has arrived at a UK railway station or terminal from outside the UK

We consider a train to have arrived at a UK station or terminal when it pulls into that station or terminal and stops. Trains may use stores up until this point but must ensure they are adequately secured on arrival.

Where a train arrives from a non-UK station, but calls at an intermediate UK station prior to its final destination in the UK, the train may continue to use stores until it arrives at its final destination. This is only allowable on the condition that all passengers on board are arriving from a destination outside the UK.

For example, if a train arrives in Ashford International from Paris Gare Du Nord and then travels on to St Pancras, if the train allows passengers to board at Ashford International and disembark at St Pancras, this leg of the journey is considered to be a separate domestic journey within the UK. No stores can be used between Ashford International and St Pancras without prior permission and the payment of UK duty. However, if a train carries out the same journey and passengers may only get off at Ashford International but not get on, stores may be used until the time the train arrives at St Pancras.

Once passengers start boarding for an entitled journey outside the UK

Where a train is departing on an entitled journey to a station outside the UK, the train manager may start to sell stores for consumption on board once the passengers start to board. They must not sell duty-free stores for retail take away until the train has left the UK station or terminal on a direct journey through the Channel Tunnel to a location outside the UK.

Special events in UK stations or terminals

Where a train manager wants to hold a special event on board a train in a UK station or terminal for non-travelling dignitaries or other persons, we may allow them to use surplus stores if the UK duty is paid on the stores consumed after the event has taken place.

The amount of stores consumed in the station or terminal will be treated as the greater of the:

• amount of actually consumed
• difference between the amount of stores on board the train before the event less the amount of stores on board after the event

Any company using this facility must have prior approval from the National Clearance Hub.

Payment details are shown in paragraph 4.13.

4.12 Abandoned journeys

There may be occasions when you must return to the UK without reaching your original destination. Each case will be decided on the circumstances which have caused the journey to be abandoned but the following matrix sets out the general rules.

If the is journey is abandoned due to an unavoidable cause

If the train has failed to stop at all or any of the train stations or terminals scheduled on the itinerary due to an unavoidable cause (such as severe weather, mechanical defect, illness of passengers or any other cause which could not have been foreseen before the train departed), we may decide that the use of stores between the train’s departure and its return is:

• reasonable, in which case we will not charge any duty
• unreasonable, in which case, when the stores account is made on return to the UK, we may charge you, as the train manager, with the excise duty on the excess deficiency

If the is journey is abandoned due to an avoidable cause

If you return to the UK without reaching the intended destination due to an avoidable cause, we will charge you, as the train manager, with excise duty on all deficiencies in your shipped stores. This would cover the case of a train intending to travel to a non-UK destination, departing with the full knowledge that it would not be possible to reach that destination.

4.13 Retail sale for take away

Duty-free stores are generally loaded for use during an entitled journey. However, trains on entitled journeys from Great Britain through the Channel Tunnel may also sell stores to passengers and crew to be taken away at the end of a journey.

Where passengers are returning to the UK, they’ll be subject to the rules and allowances for travellers.

4.14 Payment of duty train stores

Where stores are consumed on a domestic journey or during an event in a UK station or terminal under paragraph 4.12 the duty must be paid on the goods consumed within 15 days of the current month when the event or journey takes place under Regulation 12 of ASSR. Payment must be submitted on form W50 and emailed to salford.nwpu@hmrc.gov.uk.

Payment should be made by Bacs to:

• sort code — 20 05 17
• account number — 30336491
• account name — HMRC Indirect Misc. Receipts

Your payment reference number should be prefixed with ‘NWPU’ and clearly written on the W50. Form W50 is not available to be downloaded but you can order supplies from excise and gambling duties enquiries.

You should make the payment and submit the W50 on the same day. This helps us to associate the payment quicker with the W50.

5. Glossary

Term	Description
Aircraft floor store	An excise warehouse usually sited at an airport and approved to supply aircraft stores.
The ‘Box’	The seas bounded by latitudes 48°30N and 61°0N and longitude 12°0W, the Skagerrak and the Kattegat.
Customs duty	An indirect tax on goods imported from outside the UK, also known as import duty.
Customs and Excise Airport	An airport that HMRC/Border Force have designated as a place where aircraft can arrive from or leave for a destination outside the UK.
Entitled aircraft	Must depart on a flight to a country outside the UK and the Isle of Man
Excise duty	An indirect tax on, for example, beer, wine, other fermented products (previously known as made-wine), cider, spirits, cigarettes, other tobacco products and hydrocarbon oil. The tax applies to both UK-produced and imported goods.
Merchandise (take away)	Duty-paid excise goods intended for sale to passengers on board a ship, aircraft or train for take away at the end of a journey between Northern Ireland and the EU.
RMO	Registered Mobile Operator. Someone registered in the UK to ship, import or sell merchandise by retail to passengers on board a ship, or aircraft or train travelling between Northern Ireland and the EU. Refer to Notice 202: registered mobile operators.
Stores	Stores are defined in s1 of the Customs and Excise Management Act 1979. However, for the purposes of this notice, the term relates to excise goods only, unless otherwise stated.
UK territorial sea	The area of sea around the UK coast, extending 12 nautical miles to seaward from the baseline. ‘Nautical miles means 1,852 metres’. (section 1(7) of TSA).
UK waters	‘United Kingdom waters’ means any waters (including inland waters) within the seaward limits of the territorial sea of the UK. (section 1(1) of CEMA).
UK airspace	The air space above the territorial sea and territory of the United Kingdom.
Work point	All bases outside UK territorial waters in designated areas of the Continental Shelf engaged in the exploration and exploitation of the Shelf. This includes: - drilling and production platform - pipe-laying large - diving support ships - fire-fighting ships - oil rig safety ships - windfarms Survey ships are not included.

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