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HMRC internal manual

Tobacco Products Duty

HM Revenue & Customs
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Security: physical and financial: Financial Security: level of movement guarantees required of tobacco manufacturers established for at least 4 years

Manufacturers who have provided security for duty suspended movements for the previous four consecutive years will normally only be required to provide 25% (subject to a minimum amount of £20,000) of the level of security shown in the table (applicable to manufacturers established for less than 2 years) below. You may allow this reduced level of guarantee provided that:

  • there has been no claim against the security which they have provided; and
  • no significant irregularity has been identified in respect of movements covered by the security. (There is no formal definition of “significant irregularity” but it should be regarded as “any action that puts at risk a significant amount of revenue” whether or such action results in an actual revenue loss.)

You may require a higher level of movement guarantee if you believe that there are risks associated with the trader or movements beyond the norm for the regime. You should discuss and agree such additional security requirements with the CRM and advise both the Tobacco Team and the Holding and Movements Team.