Electronic Removal: Approval conditions: checklist prior to approval for electronic removal
When considering the overall system with the CAU, the following points should be borne in mind, as they will form part of the conditions of the approval letter.
- Each pallet (or the basic storage unit appropriate to the store) must be given a unique ‘individual pallet (or other) identification number’.
- The computer system must be able to trace/record all movements of tobacco products within the registered store. Such movements include the freezing of stock, changes of location, sampling and stock adjustments.
- The computer system must be able to trace/record all any change in the duty status of any and all of the tobacco product received into the store.
- The only permitted change in duty status, of any of the tobacco product received into the registered store, is from duty-suspended to duty-paid.
- The computer system must include built in safeguards whereby goods can only move from duty suspended to duty paid status. In no circumstances should the computer system allow goods to revert to duty suspended status once the initial “move” to duty paid status has been made.
- The system must have an accurate clock and calendar showing the correct current date and time.
- The system must be able to accurately assess the correct payment of duty and VAT due on removal to home use.
- The system security must be such that no unauthorised access or changes to file data is possible.
- Safeguards should ensure that revenue sensitive data (including duty status, net weights, pack size, recommended selling prices, system date and time), which affects the payment of duty, cannot be amended outside the programmes.
- All amendments or cancellations should appear on a separate computer report so that they may be investigated
- The system should allow, at any time, authorised alterations to the current duty rates and product information (eg net weights and recommended prices), in order to respond to changes in the rate of duty or information held on file that is necessary for the calculation of duty and VAT due on removal.
- Back up and recovery procedures must allow the accurate reconstruction of all movements including changes in duty status.
- All daily removals, whether to home use or duty suspended, and daily duty liabilities must be recorded by the computer system and made available in the form of computer reports. These two daily reports should then be consolidated into monthly reports, which then form part of the supplementary schedule forwarded to the Head Office for compilation of the monthly TP7.
The above list is not intended to be exhaustive or over-ride good computer audit practice as set by the CAU. The conditions, which you impose on the trader, should be agreed with the CAU and LB and then recorded in the registration letter. Please advise the Tobacco Team, Ralli Quays of any changes or additions to the above list that you consider necessary or advisable.
Remember that the particular conditions concerning “electronic removal” apply in addition to the normal conditions for the approval of a registered store.