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HMRC internal manual

Tobacco Products Duty

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HM Revenue & Customs
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Duty credits and drawback: Exports: claims for duty drawback

Fiscal marks

Under regulation 26(2), of the “Tobacco Products Regulations 2001”, any claimto drawback will involve the obliteration or destruction of any fiscal marks borne by theproduct. The drawback claim must not be allowed and duty must not be repaid until thefiscal marks have been obliterated or destroyed.

General

As explained in section TPD14070 above, there is no obviousnecessity for the export of duty paid stock and because of the danger of diversion orillegal re-import, all drawback claims should be treated with suspicion. Assuranceofficers for manufacturers will be well aware of the risks involved in drawback but areless likely to receive drawback claims. Colleagues in Excise and Inland Customs Officesshould be made aware of the following facts.

  • The majority of exports are likely to be made by the UK manufacturers from duty suspended stock.
  • Commercial arrangements exist whereby wholesalers and retailers may return unsold stock to the UK manufacturers (who may claim credit for the duty under regulation 26 of the “Tobacco Products Regulations 2001”).
  • Commercial arrangements exist whereby wholesalers and retailers may return unsold stock to the UK importers (who may claim drawback under the “Excise Goods (Drawback) Regulations 1995”, provided that all the conditions are met).
  • Tobacco products for consumption in the UK must carry UK health warnings. Cigarettes and Hand-Rolling Tobacco (HRT) manufactured in or imported into the UK for home- use must carry a fiscal mark. The health warnings and fiscal marks make them unsuitable for sale in other EU Member States.
  • Further Guidance on drawback can be found in X-43 (Drawback) and Notice 207.