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HMRC internal manual

Holding and Movements Assurance Guidance

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HM Revenue & Customs
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Excise duty points: contravention of the conditions or requirements which govern the movement of duty-suspended and duty-paid goods

This section applies where there is a failure to meet a condition or requirement covering the movement of excise goods taking place between EU Member States or solely within the UK. These include the movement of duty-suspended goods on the Excise Movement and Control System (EMCS), simplified procedures and the requirements for the provision and completion of accompanying documents. SeeNotice 197 (HMRC website) for details on EMCS, simplified procedures and fallback (which applies when EMCS is not available) and toNotice 204B (HMRC website) for details on duty-paid movements.

Regulation 18: Failure to comply with a condition of a relief from duty

A duty point arises under regulation 18(1) of the HMDP Regulations when there is a failure to comply with any condition subject to which the duty has been relieved on those goods. The duty point arises at the time of the failure to comply.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Payment of the duty

Where there is a failure to comply with a condition, the person liable to pay the duty under regulation 18(2) is the person holding the goods at the duty point. In this case, holding is considered to mean physical possession of the goods.

There is no joint and several liability under regulation 18.

Regulation 19: Breaching other conditions or requirements

Where there is a contravention of certain conditions or requirements (outlined below), a duty point arises under regulation 19 of the HMDP Regulations. The particular conditions or requirements, which when contravened will create an excise duty point are contained in the following Parts of the Regulations and are described in regulation 19 of the HMDP Regulations (as outlined below)

  • Part 6 Exports of excise goods under duty-suspension arrangements.
  • Part 8 Movements of excise goods wholly within the United Kingdom under duty-suspension arrangements.
  • Part 9 Simplified procedures for movements of excise goods wholly within the United Kingdom under duty-suspension arrangements.
  • Part 11 Imports of excise goods after release for consumption.

Part 6: Exports of excise goods under duty-suspension arrangements

For excise goods to which Part 6 applies, if there is a contravention described in regulation 19(2) of the HMDP Regulations, an excise duty point arises at the time when the goods were removed from the tax warehouse (see regulation 19(6)(a)).

The contraventions are -

(a) the removal of goods from a tax warehouse in contravention of regulation 41(2) (completion of draft electronic administrative document for exports of excise goods under duty-suspension arrangements);

(b) the removal of goods from a tax warehouse in contravention of regulation 50(2) (procedure for exports when computerised system unavailable).

The specified conditions are that -

  • the consignor must, before the goods are dispatched, complete a draft eAD which complies with EU requirements and send this to us on EMCS (regulation 41(2)).
  • when EMCS is not available, the consignor must notify us before the goods leave the warehouse or place of importation under duty-suspension arrangements and provide a correct fallback document to accompany the goods (regulation 50(2)).

Part 6: Payment of the duty

Where there is a contravention of a requirement condition in Part 6, the person liable to pay the duty under regulation 19(7)(a) is the authorised warehousekeeper.

Part 6: Joint and several liability

Under regulation 19(8), any other person whose conduct caused the contravention so there was an excise duty point is jointly and severally liable to pay the duty.

Part 8: Movement of excise goods wholly within the United Kingdom under duty-suspension arrangements

For excise goods to which Part 8 applies, if there is a contravention described in regulation 19(3) of the HMDP Regulations, an excise duty point arises at the time when the goods were removed from the tax warehouse, or the place of importation (see regulation 19(6)(b)). Part 8 would not apply where a simplified arrangement described under Part 9 was in operation.

The contraventions described in regulation 19(3) are -

(a) a failure to comply with regulation 57(2) (completion of draft electronic administrative document for movements of excise goods under duty-suspension arrangements wholly within the United Kingdom);

(b) a failure to comply with regulation 60(2) (procedure for movement of excise goods under duty-suspension arrangements wholly within the United Kingdom when computerised system unavailable).

The requirements are that -

  • the consignor must, before the excise goods are dispatched, complete a draft eAD that complies with EU requirements and send this to us on EMCS (regulation 57(2)).
  • when EMCS is not available, the consignor must notify us before the goods leave the warehouse or place of importation under duty-suspension arrangements and provide a correct fallback accompanying document to accompany the goods (regulation 60(2)).

Part 8: Payment of the duty

Where there is a contravention of a requirement contained in Part 8, the person liable to pay the duty under regulation 19(7)(b) is the authorised warehousekeeper or, as the case may be, the UK registered consignor.

Part 8: Joint and several liability

Under regulation 19(8), any other person whose conduct caused the contravention so there was an excise duty point is jointly and severally liable to pay the duty.

Part 9: Simplified procedures for movements of excise goods wholly within the United Kingdom under duty-suspension arrangements

For excise goods to which Part 9 applies, if there is a contravention described in regulation 19(4) of the HMDP Regulations, an excise duty point arises at the time when the goods were removed from the tax warehouse or, as the case may be, the place of importation (see regulation 19(6)(b)).

The contraventions described in regulation 19(4) are -

(a) a failure to comply with the conditions specified in regulation 62(3) (simplified procedures for certain movements of alcoholic liquors); and

(b) a failure to comply with the conditions specified in regulation 63(3) (simplified procedure for certain movements of tobacco products).

The specified conditions are that -

  • when a movement guarantee is required, the alcoholic goods must be accompanied by the correct accompanying documentation (regulation 62(3)(a)).
  • when a movement guarantee is not required, the alcoholic goods must be accompanied by a document issued by the consignor containing a unique reference number, the consignor’s name and address, the date of dispatch, the consignee name and address, the address of the place to which the liquor is consigned, a description of the liquor including quantity and, in the case of beer, its strength and packet size and a statement indicating that the liquor is being moved without payment of duty (regulation 62(3)(b)).
  • except in certain cases, property in the alcoholic liquor must remain with its producer or manufacturer during the course of the movement (regulation 62(3)(c)).
  • the consignee who receives the alcohol must issue a proper certificate of receipt within 5 business days to the consignor and keep a record of this (regulation 62(3)(d)).
  • if the amount of beer produced qualifies for reduced duty rates under the Small Brewery requirements placed by the Alcoholic Liquor Duties Act 1979 (ALDA) then it must be accompanied by a certificate of production (regulation 62(3)(e)).
  • tobacco product must be accompanied by a document issued by the consignor and containing a unique reference number, the consignor’s name and address, the date of dispatch, the consignee’s name and address, the address of the place to which the tobacco product is consigned, a description of the tobacco product and a statement indicating that the tobacco product is being moved without payment of duty (regulation 63(3)(a)).
  • property in the tobacco product remains with its manufacturer during the course of the movement (regulation 63(3)(b)).
  • the consignee who receives the tobacco product issues a proper certificate of receipt to the consignor of the tobacco within 5 days and keeps a record of this (regulation 63(3)(c)).

Part 9: Payment of the duty

Where there is a contravention of a condition contained in Part 9, the person liable for the duty under regulation 19(7)(b) is the authorised warehousekeeper or, as the case may be, the UK registered consignor.

Part 9: Joint and several liability

Under regulation 19(8), any other person whose conduct caused the contravention so there was an excise duty point is jointly and severally liable to pay the duty.

Part 11: Imports of excise goods after release for consumption in another Member State

For excise goods to which Part 11 applies, if there is a contravention in regulation 19(5) of the HMDP Regulations, an excise duty point arises at the time when the goods were first held for a commercial purpose in the UK (see regulation 19(6)(c)).

The contravention described in regulation 19(5) is the failure by the person making the delivery of the goods, the person holding the goods intended for delivery or the recipient of the goods failing to comply with regulation 69(1) (requirements).

The requirements are that -

  • the person/s must, before the goods are dispatched, inform us about the expected goods and provide a satisfactory guarantee or pay the duty due on those goods (regulation 69(a)).
  • the person/s must, on or before the duty point, pay any duty that has not been paid (regulation 69(b)).
  • the person/s consent to any check by us so we can be satisfied that the goods have been received and that duty has been paid on those goods (regulation 69(c)).

Part 11: Payment of the duty

Where there is a contravention of the requirements contained in Part 11, the person liable to pay the duty under regulation 19(7)(c) is the person making the delivery of the goods, the person holding the goods intended for delivery or the person shown as the recipient of the goods on the accompanying documentation.

Part 11: Joint and several liability

Under regulation 19(8), any other person whose conduct caused the contravention, so there was an excise duty point, is jointly and severally liable to pay the duty.