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HMRC internal manual

Tobacco: Control of Supply Chains

From
HM Revenue & Customs
Updated
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Penalty notices: When should a penalty notice be issued?

If there is sufficient evidence, following the six-month initial notice period, that a tobacco manufacturer has failed in his duty not to facilitate smuggling, a penalty notice should be issued. LBS are responsible for issuing the notice. The decision to issue it will be informed by TCOE and ESM. The penalty notice must be in writing and contain the following information and explanation of why the notice has been issued:
 

  • the amount of the penalty imposed;
  • an explanation as to how the penalty has been calculated and
  • details of the procedure for appealing the penalty notice.

TPDA provides for a maximum penalty of up to £5 million. The following section provides a guide for determining the actual amount of any penalty.