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HMRC internal manual

Holding and Movements Assurance Guidance

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HM Revenue & Customs
Updated
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Excise Duty Drawback: introduction

This guidance covers the drawback process, the specific risks involved, the identification of these risks and the sanctions appropriate where there is an infringement. It is aimed at those teams and officers who work within the various stages of the excise duty drawback process, ranging from the Drawback Processing Team (DPC) & the Drawback Central Assurance Team (DCAT) both based in Glasgow to the nationally based Assurance Officers of CITEX, Large & Complex, Large Business Service and Specialist Investigations. As such, some parts are more relevant to certain teams than others. It is, however, advised that you should read all the guidance in order to be aware of and understand the full drawback process.

The drawback process can be split into a number of distinct stages:

Part 1 - Approval of alternative evidence of UK duty payment (AEA)- this is an optional facility allowing an alternative where a business was unable to meet the strict evidential requirements of the normal claim process and the claimant cannot obtain evidence of duty payment from the original duty payer.

Part 2 -Notice of intention stage - this pre-advises HMRC of a revenue trader’s intention to claim drawback and provides HMRC the opportunity to inspect and mark the goods prior to the event making goods eligible for drawback.

Part 3 -Claim stage- This is submitted after the drawback event has occurred. During this stage we have the opportunity to verify that the claimant is an eligible claimant and the goods are eligible goods for the purposes of drawback before making any payment.

Part 4 - Auditing a drawback claim - This part provides further information on assuring drawback claims.

Part 5 - Sanctions - This part looks at potential scenarios, where issues may arise and provides advice on what action HMRC can take to address these issues.

Part 6 - Drawback schemes - This section looks at the niche schemes that are available to claimants. This includes the:

  • Special Scheme;
  • Scheduling; and
  • Distance Selling arrangements.

Note: This guidance must be read in conjunction with Notice 207 (HMRC website): Excise duty: drawback