Policy paper

Duty drawback, distance selling, duty stamps and fiscal marks

Updated 14 April 2023

This guidance focuses on excise duty drawback rules, distance selling, and the use of duty stamps and fiscal marks for businesses making excise freight movements involving Northern Ireland from 11pm on 31 December 2020.

Excise duty drawback

You can claim drawback of UK excise duty if the goods:

• leave the UK and have not been consumed
• are warehoused for export
• have been destroyed

Find more information on excise duty drawback.

Drawback of excise duty on exports from Northern Ireland

If you export UK excise duty paid goods from Northern Ireland to an EU member state and intend to claim drawback the rules remain unchanged. This means that when submitting your drawback claim you’ll need to provide HMRC with:

• details of the shipment (including the EU member state of destination)
• evidence of payment of UK excise duty
• evidence that you secured excise duty on the goods in the EU member state of destination

You must continue to use the duty-paid and HM4 processes to move excise duty paid goods between Northern Ireland and EU member states and comply with the fiscal mark and duty stamp requirements.

Drawback of excise duty on exports from Great Britain

The duty-paid and HM4 processes will no longer apply if you export UK excise duty paid goods from Great Britain (England, Scotland and Wales) to an EU member state. Drawback claims for excise exports should follow the outside Great Britain process.

Find more information about exporting excise duty paid goods from Great Britain from 1 January 2021.

Drawback between Northern Ireland and Great Britain

Movements of excise goods directly between Great Britain and Northern Ireland remain domestic movements and drawback cannot be claimed on these movements. However, the rules are different for excise duty paid goods moving from Great Britain to Northern Ireland via an EU member state, for example, the Republic of Ireland.

Excise duty paid goods moving from Great Britain to Northern Ireland via the EU

If you move UK excise duty paid goods from Great Britain to the EU and subsequently to Northern Ireland you can claim drawback when the goods are exported from Great Britain. You’ll need to make an export declaration and submit a claim for drawback in the usual manner, by first submitting a notice of intention to claim excise duty drawback using form EX75.

When the goods arrive in the EU you’ll need to follow the EU rules. If you enter the goods into customs or excise duty suspension, they will move on to Northern Ireland following EU rules for duty suspended goods as appropriate.

If you do not enter the goods into customs or excise duty suspension, under current EU rules you’ll have to pay excise duty in the EU member state where the goods arrive and follow the duty-paid process, securing the UK excise duty in respect of Northern Ireland.

You’ll need to use the existing HM4 process and your duty deferment account if applicable to secure the UK excise duty chargeable in Northern Ireland.

There are specific requirements for duty stamps and fiscal marks when claiming drawback for excise goods moving from Great Britain to Northern Ireland through Ireland.

Excise duty paid goods moving from Northern Ireland to Great Britain through the EU

You cannot claim drawback of UK excise duty when your goods move from Northern Ireland to Great Britain through the EU. Providing HMRC are satisfied that UK duty has been paid on the goods, no excise duty will be due when the goods arrive in Great Britain.

You’ll need to make an import declaration using CHIEF when the goods arrive in Great Britain from the EU. If UK excise duty has already been paid on the goods you should declare this and override the excise duty calculated by CHIEF by using override code ‘EXD’ and entering ‘0’ into the excise tax line.

Distance selling

If your business is based in Northern Ireland you’ll still be able to sell your UK excise duty goods to consumers in EU member states under EU distance selling arrangements.

Excise duty is paid in the country of purchase and you’ll usually have to appoint a tax representative in the EU member state where you sell the excise goods. You’ll be able to make a claim for drawback of UK excise duty by first submitting a notice of intention to claim excise duty drawback using form EX75.

Find more information about claiming excise duty drawback when exporting goods from Northern Ireland.

You should familiarise yourself with any guidance issued by the EU and also any guidance issued by the EU member state where you intend to ship the goods to.

Duty stamps and fiscal marks

You should continue to apply UK duty stamps and fiscal marks to products that require them, in line with the current rules.

Find more information on duty stamps and fiscal marks.

It is a requirement of UK rules on duty stamps and fiscal marks to destroy any duty stamps and fiscal marks prior to export.

You should destroy any duty stamps or fiscal marks for goods that are exported out of the UK customs territory, this includes excise goods moving from Great Britain to the EU.

You do not need to destroy any duty stamps or fiscal marks for products which are consigned from Northern Ireland to Great Britain or from Great Britain to Northern Ireland and pass through the Republic of Ireland.

For excise duty paid goods that you move from Great Britain to Northern Ireland through the Republic of Ireland in a continuous movement, you can claim drawback of the excise duty paid in Great Britain without destroying the duty stamps or fiscal marks when you export the goods provided you use the duty-paid and HM4 processes to move the goods from the Republic of Ireland to Northern Ireland. You can use your duty deferment account to secure the UK excise duty payable in Northern Ireland.

Your claim for drawback of excise duty paid in Great Britain will not be paid until HMRC is satisfied that any excise duty due in Northern Ireland is secured.

Find more information about duty drawback for excise goods moving from Great Britain to Northern Ireland through the EU.

If you intend to place the goods into duty suspension when they arrive in the Republic of Ireland, you must ensure that UK duty stamps or fiscal marks have been obliterated in the usual manner and follow the existing process for claiming drawback of UK excise duty when exporting goods.

Tobacco track and trace

There are separate rules for tobacco tracked under the track and trace system.

Fuel Markers

There’s no change to the procedure for adding markers to applicable fuels. The UK’s own fuel marker will continue to be added alongside the Euromarker.