Guidance

Apply for authorisation as an excise warehousekeeper

Find out how to apply to operate as an excise warehousekeeper and how to make changes or cancel your authorisation.

From:
HM Revenue & Customs
Published
23 October 2014

Authorised warehousekeepers are excise traders who are authorised to operate excise warehouses premises for the receipt, storage and dispatch of excise goods in duty suspension.

You need to apply to HMRC to be authorised as an excise warehousekeeper.

What you’ll need

Before applying you should make sure you are aware of your obligations and the conditions that apply for approval.

You will not automatically be authorised.

How to apply

You must complete form EX61.

If you are a partnership you must also complete form EXCISE102.

Application forms must be completed and signed by a responsible person within the business, such as:

  • the sole proprietor of the business

  • one of the partners if the business is a partnership

  • a director or the company secretary or an authorised signatory if the business is a corporate body

Completed forms should be returned to the Excise Processing Teams at:

HMRC
Excise Processing Teams
BX9 1GL

You must apply at least 45 working days before the date on which you wish your authorisation to begin. This will allow us time to carry out the necessary verification and pre-approval checks, which will include a visit to your place of business.

You’ll also need approval for excise warehouse premises. Find out about applying for excise warehouse premises approval.

After you’ve applied

Your application will be vetted and subjected to background checks. We may ask for more information if these checks do not provide sufficient assurance that the business is suitable for authorisation. We’ll put your application on hold until we receive this information from you.

All applicants will receive a pre-approval visit by an HMRC officer.

During the visit we’ll examine all your business’s activities and may ask about your:

  • suppliers
  • customers
  • business plans
  • accounting systems
  • premises
  • financial viability

If you can demonstrate that you’re fit and proper to carry on an excise business, you will be granted approval. We must be satisfied that the business is commercially viable, with a genuine need for approval. We must also be sure that everyone with an important role or interest in the business are law abiding, responsible, and do not pose a threat in terms of potential revenue non-compliance or fraud.

We will assess all applicants, not just the legal entity of the business, but all partners, directors and other key persons. Key persons are those who play a key role in the operation of the business. For example, they have authority and responsibility for directing and controlling the activities of the business or day to day management. Significant beneficiaries of the business who are not directors or partners and such like are also key persons. They will be assessed against a number of ‘fit and proper’ criteria to establish that:

  • there’s no evidence that the legal entity or key persons involved in the business have been previously involved in revenue non-compliance or fraud, either within excise or any other regime - examples of evidence we would consider are :

    • that there have been penalties given for wrongdoing or other civil penalties which suggest a business does not have a responsible outlook on its tax obligations
    • there were previous occasions where approvals have been revoked or refused for this or other regimes
    • there were previous confiscation orders and recovery proceedings under the Proceeds of Crime Act
    • that key persons have been disqualified as a director under company law

  • there are no connections between the business, or key persons involved in the business, and other known non-compliant or fraudulent businesses

  • key persons involved in the business have no criminal convictions which are relevant, for example, offences involving any dishonesty or links to organised criminal activity

  • the application is accurate and complete and there’s been no attempt to deceive

  • there have not been failures to comply with any HMRC record-keeping requirements - for example, poor record keeping despite previous warnings, or absence of key business records

  • the applicant, or key persons in the business, have not previously attempted to avoid being approved and have traded whilst unapproved

  • the business has provided sufficient evidence of its commercial viability and credibility - we’ll not approve applicants where we find that they cannot substantiate that there’s a genuine plan to legitimately trade from the proposed date of approval

  • there are no outstanding, unmanaged HMRC debts or a history of poor payment

  • the business has satisfactory due diligence procedures in place relating to its dealings with prospective customers and suppliers to protect it from trading in illicit supply-chains

You will also need to demonstrate the following before approval can be granted. You must have:

These lists are not exhaustive. If we’re not satisfied with the information you give us, we may refuse to authorise you. Also, if you do not provide us with the information requested, we’ll place your application on hold until the information is received. We’ll tell you the reason or reasons for the refusal.

After your application is approved or refused

Application approved

If we accept your application, we’ll issue a certificate of authorisation. You should check the accuracy of the details on the certificate which should be kept in a safe place and made available to our officers on request. Any inaccuracies should be reported to the  Excise Processing Teams  immediately.

All the excise warehouses which you are authorised to operate will be listed on the reverse of your certificate, plus details of any conditions that we have placed on your authorisation.

Application refused

If we refuse your application, we’ll inform you in writing and give you our reasons. We’ll offer you a review of our decision. Find out more about what you can do if you disagree with our decision.

Changes you must report to HMRC

You must tell the  Excise Processing Teams  within 7 days if any information contained on your certificate of authorisation changes. When you receive a replacement certificate, you must destroy the previous certificate, or we may impose a financial penalty.

The status of your business may change. Examples of changes may be that:

  • a sole proprietor becomes a partnership
  • all the approved excise warehouses are transferred to a company which is not an authorised excise warehousekeeper

If there are changes to the status of the business, the new legal entity must apply to become an authorised excise warehousekeeper. We’ll not automatically authorise the new applicant.

Also, if there’s any change to the key persons involved in the business, we retain the right to review the authorisation after considering the fit and proper criteria. Following this review your authorisation may be withdrawn or have conditions added.

If we cancel or make changes to your registration

We can withdraw or change your authorisation immediately, at any time, for a reasonable cause. If we decide to withdraw your authorisation, we may give you a period of notice.

We’ll tell you in writing and give the reasons for our actions. We’ll offer a review of our decision or you can appeal if you disagree.

You must destroy your certificate of registration on the day your authorisation ends.

You’ll be liable for the duty immediately, on all of the stock in your warehouse, unless another authorised excise warehousekeeper agrees to operate the premises. If there’s a change of authorised warehousekeeper, this must be notified to the Excess Processing Team.

If you want to cancel your registration

You must write to the Excise Processing Team at least 30 days before the date you want to cancel your authorisation. On the date of cancellation, you must destroy your certificate of registration or you may receive a penalty.

Excise Duty will become due, unless the duty-suspended stock is transferred to another approved excise warehouse before the cancellation date.

Published 23 October 2014
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