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HMRC internal manual

Excise Due Diligence Condition guidance

From
HM Revenue & Customs
Updated
, see all updates

General: why has HMRC introduced this condition?

UK Alcohol fraud is a serious problem driven by strong demand for popular brands of alcohol sold at illicit prices by criminal gangs which have penetrated legitimate wholesale and retail markets with complex supply chains involving sophisticated organisation in finance, procurement, logistics, supply chain control and marketing. It harms not only the taxpayer but also legitimate businesses, communities and the wider economy. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Concerted action by excise registered traders to mitigate identified risk will reduce criminals’ access to alcohol for fraud and restrict avenues for onward sale of illicit goods. For legitimate businesses, due diligence will also reduce the risk of implication and financial liabilities associated with goods on which duty has been evaded. It will also help drive up consumer confidence in the products they buy.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) This condition is therefore aimed at those who do not operate adequate due diligence or would choose, without such a condition, to turn a blind eye to anomalies in the responses they received. We seek to ensure that due diligence and risk assessment is carried out to a reasonable standard across the sector and react positively where it is not.