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HMRC internal manual

Tobacco Products Duty

From
HM Revenue & Customs
Updated
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Security: physical and financial: Financial Security: level of movement guarantees required for tobacco manufacturers established for less than 2 years.

New manufacturers will be required to provide a movement guarantee. The level of security required is shown in the following table:

Potential duty level * Level of security
   
Less than £1 million 25% of the potential duty, subject to a minimum of £20,000
More than £1 million  
but less than £25 million £250,000
More than £25 million  
but less than £100 million 1% of the potential duty
More than £100 million £1 million

The potential duty, in the case of established manufacturers, is the amount of duty suspended on movements in an average week during the previous 12 months

The potential duty, in the case of new manufacturers, will be the amount of duty that the manufacturer expects will be suspended on movements in an average week. The “average” week, in this case, is the expected average of the next 52 weeks.