Guidance

Removing cider from your premises without paying Excise Duty

Find out when you can remove cider without paying Excise Duty and how to do it.

Removals you must pay duty on

Duty must be paid on all removals from your licensed premises for the following purposes, if:

  • it’s for UK consumption (usually known as a removal to home-use)
  • it’s been constructively removed
  • the cider has been lost
  • other irregularities are discovered
  • you’re no longer licensed
  • the premises where you’re holding cider stop being licensed premises

Removals you will not pay duty on

As long as you comply with conditions HMRC may impose, you can remove cider from your licensed premises without paying duty for:

You must record all removals in your business records.

Any shortage in removal or transit will be charged with duty if you cannot give us a satisfactory explanation.

Documents you need

All intra-UK movements of cider will be submitted through the Excise Movement and Control System (EMCS) unless they qualify for the simplified procedures.

You’ll have to raise an electronic administrative document (eAD) on EMCS before the movement can start. EMCS automatically allocates an Administrative Reference Code (ARC) that uniquely identifies the movement.

The ARC will be on the printed copy of the eAD or should be noted on the commercial document and must travel with the goods.

For more information on EMCS procedures, check Notice 197 Excise goods: receipt into and removal from an excise warehouse of excise goods.

If movements of cider are under simplified procedures and moving between UK licensed producers or third party packagers or excise warehouses, your normal commercial despatch documents will be suitable if they have:

  • the name and address of your premises
  • a unique reference number
  • the name and address of the premises you are sending the cider to
  • the date of despatch
  • a description of the cider, including the quantity
  • a statement indicating that the cider is being moved in duty suspension

You must tell us if you’ve been paid, or expect to be paid in cash for the supply of cider in duty suspension (or any service you provide for cider in duty suspension).

Guarantees

Financial security is a guarantee given by an approved guarantor (for example a financial institution) who’ll pay money to us if there’s an irregularity covered by the guarantee. Guarantees are the only form of security acceptable to us.

When you need a guarantee

Depending on circumstances, we may need a guarantee to safeguard the duty on:

We may need a movement guarantee for movements of cider within the UK.

You’ll need financial security to guarantee the duty on cider in duty suspension for intra-community movements.

The guarantee must be:

  • valid throughout the EU
  • enough to cover the full amount of potential duty on the cider

How to get a guarantee

To get a guarantee for intra-EU movements of cider or, if requested by us, for movements of cider within the UK, refer to section 10 of Notice 197 Excise goods: receipt into and removal from an excise warehouse of excise goods and then make a request in writing and send to:

HMRC
Excise Processing Teams
BX9 1GL

Once we’ve agreed your guarantee amount, we’ll issue the draft wording to your guarantor for completion of the guarantee form and return to the EPT. If satisfied, we’ll accept the guarantee and return a signed copy to the guarantor. We’ll write to you to confirm we’ve approved the guarantee.

What will happen if you do not give a guarantee

If you fail to give a guarantee, you must pay the duty due when the duty point occurs, which is as soon as you despatch cider to home-use from your licensed premises, rather than delaying payment of the duty until the 15th day of the following month.

Who can be your guarantor

Only companies approved by us can act as guarantors. Most banks and insurance companies have this approval, but if you want to check a company, contact the Financial Security Centre.

Cost of guarantee

The cost of the guarantee is a commercial arrangement between you and the guarantor.

Use EPSS authorisation

You will not have to give a guarantee if you’re eligible for authorisation under EPSS. Where an eligible business is approved for EPSS, they may defer payment of duty without giving a guarantee.

Who qualifies for EPSS

To be eligible to apply for EPSS, you must have been VAT registered for 3 years or more. If so, you’ll be assessed against the full EPSS authorisation criteria which includes checks on your VAT, excise and debt compliance history.

If you’re trading beneath the VAT registration threshold, you can apply for EPSS if you’ve been registered in an excise payment regime for 3 years or more. You will not be assessed against the full EPSS eligibility criteria but instead checks will be made on your excise return, payment and debt compliance history.

How to apply to make payments without providing a guarantee

You must complete form Excise Payment Security System: application to make payments of excise duties without a guarantee (EPSS(B)). Send the completed application form to:

EPSS Authorisation Team
Ruby House
8 Ruby Place
Aberdeen
AB10 1ZP

Telephone: 03002 003 700

Get a guarantee if you do not qualify for EPSS

Your guarantor must complete form Provide a payment guarantee for the Excise Payment Security System (C1201 TAPS).

Send the completed form to:

HMRC
Environmental Taxes Team
Room ELG-03
St Mungo’s Road
Cumbernauld
Strathclyde
G70 5TR

Telephone: 03000 592 688

Your guarantee should be set at a maximum amount that’s enough to cover all the duty likely to be due on cider removed from your licensed premises to the UK home market, in any given accounting period.

If you are not eligible to apply for EPSS and you do not want to give a guarantee then you can pay your duty liability up front. The payment is an annual one and you must pay a year’s estimated duty in advance. Contact the Environmental Taxes Team to make the arrangements.

Registered cider producers who have premises that are also approved as an excise warehouse must have a separate deferment guarantee to cover any duty due on removals from the excise warehouse - unless they’re eligible to apply for authorisation to make payments without givng a guarantee.

You will not be authorised for duty deferment unless you have a guarantee or are authorised under EPSS.

Supply cider to other EU member states

Removing cider to other EU member states

All intra-EU movements of cider will need to be submitted through EMCS. Notice 197 Excise goods: receipt into and removal from an excise warehouse of excise goods has more information. You can remove duty suspended or duty paid cider to other EU member states, but the procedures and requirements are different.

Procedures you must follow to remove duty suspended cider to other member states

You must follow the detailed procedures set out in Notice 197 Excise goods: receipt into and removal from an excise warehouse of excise goods which include the following requirements, you must:

  • have financial security (guarantee) in place, the minimum level of security for movements is £20,000
  • make sure that you are sending the cider to a warehouse or a registered consignee which the Fiscal Authorities in that member state have approved to receive that type of cider
  • access EMCS and raise an eAD before the movement starts and obtain an ARC that will uniquely identify the movement
  • get a valid report of receipt confirming that the consignee received the cider

Send duty suspended cider to a non-licensed trader or private individual in another EU member state

If you’re sending the cider direct to a non-registered trader then you must pay the duty before the cider leaves your licensed premises. You may be able to reclaim the duty as drawback.

If the non-registered trader appoints an agent who is authorised to receive duty suspended excise goods, then duty does not need to be paid. But the movement must be submitted through EMCS, with the agent shown as the consignee on the eAD.

If you’re sending the cider to a private individual (rather than a trader), this is known as distance selling, and you must make sure that the duty is paid prior to the cider leaving your licensed premises. You may be able to reclaim the duty as drawback.

You, as the seller, are also responsible for ensuring that the duty is paid in the member state of destination. More information on distance selling can be found in Notice 197 Excise goods: receipt into and removal from an excise warehouse of excise goods.

Despatch duty paid cider to other EU member states

The duty in the member state of destination must be secured before the despatch of the goods and then paid on receipt. How this is done depends on the rules in the receiving EU member state. Unless the goods are being despatched to a private individual, the goods must be accompanied at all times by a Simplified Accounting Administrative Document.

You may be able to reclaim the UK duty on the grounds that you despatch. To reclaim the duty, you must observe the conditions of the drawback system in Excise Notice 207: Excise Duty drawback.

Drawback is a relief which provides for the repayment of Excise Duty paid goods that have not and will not be consumed in the UK.

Export duty suspended cider to non-EU countries

Procedures to follow

You must follow the procedures set out in Excise Notice 197: receipt into and removal from an excise warehouse of excise goods when you are consigning duty suspended cider from the UK to non-EU countries either directly (known as ‘direct exports’) via a UK port or airport, or indirectly (known as ‘indirect exports’) by transiting another member state.

Movements of cider must be submitted through EMCS and be covered by a movement guarantee. For indirect exports, this also includes the part of the journey from licensed premises to the UK port or airport of departure.

You must complete an export declaration. Information and guidance is contained in the UK Trade Tariff: volume 3.

Guidance on EMCS, including completion of an eAD and movement guarantees, can be found in Excise Notice 197: receipt into and removal from an excise warehouse of excise goods.

For information on customs requirements, read Notice 275: customs export procedures.

Evidence you need to keep

If the correct procedures have been followed for exports (direct and indirect) to non-EU countries using EMCS, HMRC will send you a report of export via EMCS which discharges the movement. Where no report of export is given for any reason, HMRC will issue a report of rejected export (an IE839 message).

When you get an IE839 message, you may be asked to show alternative evidence of export as shown in Excise Notice 197: receipt into and removal from an excise warehouse of excise goods.

For direct exports made using Local Clearance Procedures (LCP) from your premises you should get a ‘departure message’ from CHIEF (Customs Handling of Import and Export Freight) which you need to keep as proof of export.

You may be liable for duty if you cannot produce evidence that cider removed from your premises has been exported from the UK or through another member state.

More information on reports of export, CHIEF departure messages and alternative evidence of export can be found in Notice 197 Excise goods: receipt into and removal from an excise warehouse of excise goods.

Export duty paid cider to non-EU countries

If you export duty paid cider to a non-EU country and certain conditions are met, you may reclaim the duty under the Excise Duty Drawback system. For more details, read Excise Notice 207: Excise Duty drawback. To reclaim the duty, you must be able to produce evidence that the cider left the EU.

Supplying cider to HM ships

HMRC allows certain HM ships to get cider free from Excise (and Customs) Duty. These removals are treated as exports, with the point of exportation being the delivery of the cider to the ship.

Movements to HM ships are not considered to be in duty suspension and do not move under EMCS procedures. You must complete commercial documentation for the removal of cider from your premises.

You’ll find more information and procedures to follow in Excise Notice 197: receipt into and removal from an excise warehouse of excise goods.

Ship cider as ship’s stores

You may remove cider from your premises to be shipped as stores on board ships within the UK.

These movements are not considered to be in duty suspension but supplied under relief and do not move under EMCS procedures.

The ship’s master must first seek authorisation from HMRC before loading new stores onto their vessel. This authorisation is granted on Stores authority for spirits and tobacco products (C945). You should ask to see a copy of this form and keep a photocopy for your records.

You must complete commercial documentation for the removal of cider from your premises. Paragraph 14.5 of Excise Notice 197: receipt into and removal from an excise warehouse of excise goods gives details of the information needed on the document.

You must satisfy HMRC that the cider has been shipped as stores.

Supply diplomats and visiting forces

You must have an official authorisation for the delivery of the cider. You must complete specific documentation for the removal of cider from your premises. You will find more information in VAT relief for suppliers to visiting forces (VAT Notice 431) and Excise Notice 197: receipt into and removal from an excise warehouse of excise goods.

Supply duty suspended cider to entitled organisations in other member states

You must get an order and an exemption certificate when supplying cider in duty suspension to entitled international organisations, embassies and forces elsewhere in the EU. You must use EMCS for the removal of cider from your premises. You’ll find more information and procedures to follow in Excise Notice 197: receipt into and removal from an excise warehouse of excise goods.

Removals of cider

Move cider to other licensed premises without payment of duty

All intra-UK movements of cider will need to be submitted through EMCS unless they qualify for the simplification procedures.

You can only remove cider to:

  • another registered cider maker’s premises for:
    • blending or mixing with other alcoholic or non-alcoholic ingredients
    • conditioning and bottling or kegging
    • rendering sparkling
    • destruction
  • a licensed made-wine producer’s premises for use in the production of made-wine

You’ll be responsible for the duty on the cider until you get a receipt. The receiving cider maker or wine producer must:

  • complete a report of receipt, if the movement is submitted through EMCS
  • sign the cider duty receipt (for example, the delivery note) if under simplified procedures

The receiving cider maker or wine producer must issue a receipt within 5 days of receiving the cider in their licensed or registered premises. If you do not get a receipt, you should contact them. If you do not get a receipt within 4 months, you’ll be liable for the duty due on the cider. If you later get a receipt, you may credit your duty account with the appropriate amount of duty.

When cider is delivered to home-use from the receiving cider premises, duty will become due. Duty must be paid by the producer who finally delivers the cider to home-use.

A finished or packaged product is any product which is kegged, canned, bottled or otherwise packaged and products which will not go through any further process of production. Finished or packaged cider must not be moved, without payment of duty, from one set of licensed premises to another with one exception, bottlers or packagers may return cider to the premises from which it was received.

Use simplification procedures to move cider in the UK

Simplification procedures apply to certain UK movements and allow for cider to be moved under duty suspension using commercial documentation or customs documentation instead of EMCS. These procedures are limited to:

  • cider moving between UK-registered cider makers or third party packagers or excise warehouses approved to receive and store cider - ownership of the cider must remain with the producer during the course of the movement
  • movements for direct export only from the UK where the dispatching cider maker is authorised for LCP and can provide a full customs export declaration - movement guarantee details must be shown on the declaration, more information can be found in Excise Notice 197: receipt into and removal from an excise warehouse of excise goods.

If movements do not meet the above criteria, then EMCS will have to be used.

Move cider to an excise warehouse

Movements of cider

All intra-UK movements of cider will need to be submitted through EMCS unless they qualify for the simplification procedures.

You may remove cider, without payment of duty, to an excise warehouse (approved under section 92 of the Customs and Excise Management Act 1979) for the following purposes:

  • export, shipment as stores or removal to the Isle of Man
  • use in the manufacture of goods allowed to be produced in an excise warehouse
  • bottling
  • storage and subsequent delivery to:
  • home-use
  • another warehouse
  • rendering sparkling

In the case of finished and packaged products, each package must carry a satisfactory identifying mark and number. Containers must be full, and each case must hold containers of uniform size.

If you send duty suspended cider to an excise warehouse for bottling, packaging or storage, you’ll need to be approved as a registered owner of warehoused goods under the Warehouse keepers and Owners of Warehoused Goods Regulations 1999 (SI 1999/1278). You’ll find more information on this and the procedures to follow in Excise Notice 196: excise goods - registration and approval of warehouse keepers, warehouse premises, owners of goods and registered consignors.

What documents must accompany the cider

If the movement is under EMCS, an eAD will have to be raised on EMCS before the movement can start. EMCS automatically allocates an ARC that uniquely identifies the movement. The ARC will be on the printed copy of the eAD or should be noted on the commercial document and must travel with the goods.

If the movement is under simplified procedures and are moving between UK licensed producers or third party packagers or excise warehouses your normal commercial despatch documents will be suitable if they have:

  • the description of the cider
  • its alcoholic strength
  • details of the quantity contained in each package (and if appropriate, the capacity of each container)
  • the total quantity sent

Keep a copy of the despatch document, and the warehouse keeper’s receipt, for your own records. For more details on the procedures for inter-warehouse removals, read Excise Notice 197: receipt into and removal from an excise warehouse of excise goods.

Receive cider in registered premises

Receive cider from other registered premises or excise warehouses

All intra-UK movements of cider will need to be submitted through EMCS unless they qualify for the simplification procedures.

On receipt of cider you must:

  • inspect the delivery vehicle to make sure it is secure and any locks and seals are intact
  • examine containers for signs of damage
  • check the delivery against the document accompanying the cider
  • issue a receipt within 5 days of the cider being received - if movement under EMCS, this will be a report of receipt or, if under simplified procedures, a certificate of receipt (for example, copy of delivery note) signed by an authorised person
  • record issue of the receipt
  • enter the quantity received into your stock records
  • keep the accompanying document

If you find a discrepancy between the cider received and the accompanying document, you must issue a receipt only for the cider you actually receive. Show the discrepancy clearly on the certificate of receipt or include an inventory of the shortage or loss in the report of receipt.

The cider received becomes part of your stock and is subject to the same rules as the product you produce on your licensed premises.

If you are not approved as an excise warehouse, you can only receive cider in a ready for sale state if you produced it yourself.

Tell HMRC if you’re paid in cash for duty suspended cider

If you’re paid in cash for cider supply

As a registered cider maker, you must notify us if you have been paid, or expect to be paid, in cash for the supply of duty suspended cider which is more than £9,000 (or equivalent in other currencies).

How to tell HMRC about supply

You must fill out form Notify HMRC of cash payments for alcohol in duty suspension (W7). For information on completion of the W7, refer to the notes on the form.

Send the completed form to the fax number or email address shown on the W7.

If you’re paid, or expect to be paid, in 2 or more instalments, which individually are below the £9,000 notification threshold but in total will exceed this amount, you must also tell us on form W7 when the first cash payment is received.

As long as you’ve told us about the transaction, you do not need to wait for us to respond to receipt of the W7 before removing duty suspended cider to other registered premises, excise warehouses or member states.

You must also tell us of any cash payments you get exceeding £9,000, for any service you provide relating to duty suspended cider, for example, storage facilities, handling charges, packaging of cider or use of an excise movement guarantee.

Published 11 July 2018