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HMRC internal manual

Tobacco Products Duty

From
HM Revenue & Customs
Updated
, see all updates

Registration: Pro-forma letter B: Registration of a store

PRO-FORMA LETTER ”B”: REGISTRATION OF A STORE

[NOTE: You should complete an individual letter for each store]

Company Name:

(this must be the correct legal entity for the premises being registered)

Address:

VAT registration number:…………………(insert the 9 digit VAT number of the legal entity above and the 4 digit suffix for the actual premises)

Dear Sirs

TOBACCO PRODUCTS DUTY: REGISTRATION OF A STORE

  1. The Commissioners of HM Revenue & Customs have registered the premises as shown on the attached plan at Annex [………]* for the safe storage of tobacco products without payment of duty with effect from [insert date]*.
     
  2. The premises are located at:
     
  3. [enter address of premises]*
     
  4. The registration number allocated to the store identified above is [……….]*. This should be quoted on all correspondence relating to the store.
     
  5. The tobacco products that may be stored without payment of duty at the registered premises are [cigarettes, cigars, hand-rolling tobacco, other smoking tobacco and chewing tobacco]**.
     
  6. The tobacco products stored at the registered premises are intended for [home use only / export only / home use and export]*.
     
  7. The hours during which the registered premises will be open are [insert times when manufacture will occur; eg ‘0700 - 2300 hours Mondays to Fridays inclusive plus 0800 -1630 hours on Saturdays’]*.
     
  8. You have elected [to] [not to] ** “break bulk” in the registered store..
     
  9. Your definition of a bulk unit is [insert the description of the bulk case agreed with the trader]*
     
  10. You have been approved to use computer records subject to the following conditions. These conditions are imposed under Section 118A of the ‘Customs and Excise Management Act 1979’.
  • The right of access by our Officer to the computer systems and their documentation (including financial and management systems) in relation to your business as a revenue trader;
  • The provision of any necessary assistance to our Officer during audits of the systems;
  • The provision of print facilities for the information accessed;
  • The inclusion of the computer system in your annual audit (and the auditor’s report being made available to our Officer);
  • Adequate security, fallback and recovery systems;
  • Advance notice to our Officer of any proposed changes to the system (Such changes must not be introduced without official approval).
  • In the event of a computer breakdown you should [insert the details of the procedure you have agreed with the trader]*. You should also follow any instruction or advice you subsequently receive from our Officer.
  1. [The premises are approved for the removal of tobacco products from the port of importation to the registered store for examination (the ‘import account’) provided that they are entered correctly for deposit in registered premises and are imported in secure containers containing no other goods.]**
     
  2. [The store has been approved for the “electronic removal” of tobacco products subject to the following conditions**
  • each [insert the basic storage unit, eg pallet or stock case]* must be given a unique identification number;
  • your computer system must be capable of tracing and recording all movements of tobacco products, including the freezing of stock, changes in of location within the store, sampling and stock adjustments;
  • your computer system must be capable of tracing and recording 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;
  • any change in duty status from “duty suspended” to “duty paid” must be recorded on your computer system and such a change in duty status must be impossible to reverse, whether by accident or design;
  • your computer system must have an accurate calendar and clock showing the correct date and time;
  • your system must accurately calculate the correct amount of duty and VAT (if appropriate) due on removal of tobacco product to home use;
  • your system security must prevent any unauthorised access or changes to file data;
  • safeguards in your system must ensure that revenue-sensitive data (including duty status, net weights, pack sizes, recommended selling prices, system date and time), which affects the calculation and payment of duty cannot be amended outside the programmes;
  • all amendments or cancellations must appear on a separate computer report so that they can may investigated;
  • your computer system must allow, at any time, authorised alteration 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 other information held on file which is necessary for the accurate calculation of duty and VAT due on removal;
  • your back-up and recovery procedures must allow the accurate reconstruction of all movements of the tobacco products received into the store, including changes in duty status;
  • your computer system must record all daily removals, whether to home use or duty suspended, and daily duty liabilities. It must make the records available in the form of daily computer reports. These two daily reports should be consolidated into monthly reports, which should [form part of the supplementary schedule forwarded to your Head Office for the compilation of the monthly TP7]***.
  1. **This registration applies to premises that are not a building and the following conditions apply.
  • The extent of the registered store is demarcated by a [fence constructed of …./ a wall] [ ] metres high.
  • The tobacco products must be kept within clearly and uniquely identified transport containers.
  • The containers must be placed within clearly and permanently marked locations within the store.
  • The location of each container must be recorded in the store records.**
  1. [ Add here any other conditions or requirements particular to the registered premises concerned]**.
     
  2. If you wish to change any of the details regarding your registered store, the periods of notice we require are given in Regulation 7 of the ‘Tobacco Products Regulations 2001’.
     
  3. Failure to comply with the provisions of the law in force with respect to the premises and the tobacco products therein and in particular to comply with any requirements authorised by law, which may be notified to you by or on behalf of the Commissioners in HM Revenue & Customs Notices or otherwise, may result in the revocation of the registration.
     
  4. You should complete and return the enclosed acknowledgement and also retain this letter for your records.

Yours faithfully

[to be signed at the appropriate level as determined locally]

-–-–-–-–-–-–-–-–-–-–-–-–-–-–-–-–-–-–-–-–-–-–-–-–-–-–-–-–-–-–-–-–-–-–-–

Acknowledgement

Please complete the acknowledgement below on the enclosed copy of this letter and return to:

[

]*

I/We acknowledge receipt of the letter of which the foregoing is a copy.

Signed

Status of Signatory

Date

(To be signed by a director or officer of the company.)

  • complete as necessary

** delete as necessary