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HMRC internal manual

Biofuels and Fuel Substitutes Assurance

Accounting: Simplified duty deferment guarantee arrangements (EPSS)


The Excise Payment Security System (EPSS) replaces the Excise Duty Guarantee system.

The Customs and Excise Management Act 1979, section 127A provides the Commissioners of HMRC to make provision for the excise duties on prescribed goods to be deferred subject to conditions or requirements imposed under Regulations or by theCommissioners. The Excise Duties (Deferred Payment) Regulations 1992 provide that security for the duty shall be required in such form and manner as the Commissioners may require.

From 1 February 2007, anyone making deferred payments of excise duties when goods (alcohol, tobacco and oils) are removed to the UK home market from an excise warehouse or upon importation will be required to provide an excise duty guarantee.

However traders may become authorised to defer or make payments without a guarantee, providing that they meet the eligibility and authorisation criteria. This will mirror the existing Simplified Import VAT Accounting (SIVA) criteria, with an additional check on excise debt history and offence history.

Application for the New Arrangements

If traders already hold a guarantee to defer payments of excise duty, then they can apply for authorisation. Application forms are available to download from HMRC’s internet site, on the ‘FAQs’ page accessible from the‘Excise & Other’ homepage.

Once completed the Application form should be sent to:

EPSS Authorisation Team
Ruby House
8 Ruby Place
AB10 1ZP

The EPSS Authorisation Team may be contacted on (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Simplified Import VAT Accounting (SIVA)

Where traders are currently deferring import VAT, they can also apply to be authorisedto reduce the level of guarantee for import VAT purposes.

Traders can obtain an application Form, from either the SIVA website or by contacting theNational Advice Service (NAS) 0845 010 9000