Receive goods into and remove goods from an excise warehouse (Excise Notice 197)

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1. Overview

1.1 About this notice

This notice explains what an approved business needs to do to hold and move excise goods in duty suspension within the UK.

You should read it if you’re:

already authorised as an excise warehousekeeper with approved warehouse premises
registered as an owner or duty representative of excise goods
approved as a registered consignor or are responsible for transporting excise goods
approved as a registered consignee in Northern Ireland who is responsible for receiving duty-suspended movements before releasing them for consumption

This notice applies to you if you:

receive and place duty-suspended excise goods into an excise warehouse (read section 5)
move excise goods in duty suspension from the place where they are released for free circulation to an excise warehouse or other allowable destination (read section 7)
remove duty-suspended excise goods from an excise warehouse to home use on payment of duty (read section 11)
remove excise goods in duty suspension from an excise warehouse to other approved persons or premises in the UK (read section 12)
remove excise goods in duty suspension from an excise warehouse for export from the UK (read section 13)
remove excise goods from an excise warehouse for a specific duty relieved purpose (read section 14)
need to understand the requirements that apply to the holding and movement of excise goods and payment of duties that apply in Northern Ireland

This notice contains the general conditions, directions and requirements relating to the movement of excise goods to and from UK excise warehouses.

It should be read along with Registration and approval of excise goods held in duty suspension (Excise Notice 196) which deals with the authorisation of warehousekeepers, approval of premises as excise warehouses, registration of owners of excise goods in warehouse and approval of registered consignors.

You can find more information about specific types of excise warehouse approval in the following notices:

As an authorised warehousekeeper, registered owner, duty representative, registered consignor or registered consignee, you have obligations under the law. If you fail to fulfil these obligations or observe any condition of your authorisation, you could:

get a financial penalty
be liable for the duty on the goods
have the goods forfeited
have your authorisation and approval restricted, or get new conditions on your authorisation and approval
not be able to renew your authorisation or approval for some or all the sites for which you’re an authorised warehousekeeper
have your authorisation and approval withdrawn for some or all the sites for which you’re an authorised warehousekeeper
have registration as a registered owner, duty representative, registered consignor or registered consignee cancelled

If you sell alcohol wholesale on, at the point duty becomes due, you should also follow the guidance in Excise Notice 2002: Alcohol Wholesaler Registration Scheme.

2. Excise Movement and Control System (EMCS)

2.1 General information about EMCS

EMCS is an electronic system that records and validates movements of duty-suspended excise goods. From 13 February 2023 it was extended to also capture movements of duty-paid goods between Northern Ireland and the EU.

Further information on dispatching or receiving duty paid goods between Northern Ireland and the EU can be found in Commercial importers, certified traders and tax representatives — EU trade in duty paid excise goods (Excise Notice 204b).

The UK has retained its version of EMCS for recording and validating movements of duty-suspended excise goods within the UK. However, this is no longer linked to the EU-wide EMCS, apart from in respect of Northern Ireland.

Unless there’s a specific exemption in UK law, EMCS must be used for the following movements of excise goods in duty suspension:

intra-UK movements of alcohol and tobacco where the goods are moving between tax warehouses within the UK
movements of alcohol and tobacco from a UK tax warehouse to the place where the goods will leave the territory of the UK
movements of excise goods by registered consignors from the location where the goods are placed into free circulation or authorised use to a UK tax warehouse or for re-export
movements of excise goods between Northern Ireland and an EU member state of all excise goods where they are moving between approved persons or premises
movements from Northern Ireland to a place in the EU where the excise goods will leave the EU territory, either as a direct export from Northern Ireland or an indirect export through an EU member state
movements of excise goods by Northern Ireland registered consignors from the place where the excise goods are released to free circulation to approved persons or premises either in the EU or the UK

Authorised warehousekeepers and registered consignors moving duty-suspended excise goods must register and enrol for EMCS.

Consignors of duty-suspended excise goods must complete and submit a message known as an electronic Administrative Document (eAD) using EMCS before a movement of excise goods can take place.

For help to use EMCS, you can read:

guidance on GOV.UK explaining how to use EMCS
help text on the EMCS screens

When the details entered on the eAD have been validated, EMCS will generate a unique administrative reference code (ARC) for that particular movement. Depending on if the movement started in Northern Ireland or the rest of the UK the ARC will either begin ‘XI’ or ‘GB’.

The ARC is required to travel with the goods and must be made available for presentation when requested by the relevant authorities during the course of the movement.

Before the start of movements between Northern Ireland and the EU, the consignor must provide the person accompanying the goods (or the transporter or carrier if there is no accompanying person), with details of the ARC. That person must then be able to produce that ARC to HMRC (or an EU member state’s authorities), if requested during the journey. In some circumstances, they may also be required to provide additional follow-up information, such as a printed copy of the eAD.

For all other types of movements, the consignor must provide the person accompanying the goods (for example, the driver of the vehicle) prior to departure with either an eAD or a commercial document on which the unique ARC is clearly stated, either in paper or electronic form.

If an electronic document is used it must be either an electronic copy of the relevant eAD or an electronic copy of any other commercial document containing the relevant ARC.

You cannot send the electronic document containing the administrative reference code (ARC) by text message.

The electronic document containing the ARC must be transmitted directly to the person accompanying the goods, for example, the driver of the vehicle.

If you want to use an electronic document, you must be able to display it immediately when asked by an authorised person.

The person accompanying the goods must also be able to immediately forward the document to the relevant authorities if asked to do so.

Details of how excise warehousekeepers and registered consignors can register, enrol and access EMCS are in Registration and approval of excise goods held in duty suspension (Excise Notice 196).

2.1.1 Exceptions — where EMCS is not used

All UK traders involved in the receipt and dispatch of excise goods in duty suspension within the UK must be able to send and receive the goods through EMCS.

Exceptions to this rule apply when:

the excise goods are moving under fallback procedures because EMCS is not available (read section 3)
the duty-suspended movement is one that meets the criteria for simplified procedures (read section 4)
a duty-suspended movement of energy products is taking place between 2 suitably approved premises wholly within the UK or from an approved premises to a place from where they will leave the UK — these intra-UK movements do not take place on EMCS, they must be accompanied by form W8 (or commercial equivalent) instead — find more information on duty-suspended movements of energy products within the UK in Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179)
for Northern Ireland only — a duty-suspended consignment of wine is dispatched by a small wine producer based in an EU member state that exempts those traders from using EMCS — these movements should be accompanied by a document drawn up by the small wine producer in line with EU Delegated Regulation 2018/273 — the EU member states that currently grant this exemption to their small wine producers are:
- Austria
- Belgium
- Bulgaria
- Cyprus
- Czech Republic
- Germany
- Greece
- Hungary
- Italy
- Luxembourg
- Malta
- Portugal
- Romania
- Slovakia

2.2 The eAD

This notice details the structure and content of electronic messages exchanged through EMCS and includes the information required in the relevant fields of the eAD. It also includes detail on the report of receipt and change of destination (CoD) declarations.

The legal requirements for these messages submitted for movements starting in Great Britain (England, Scotland and Wales) are set out in Excise Movement and Control System (EMCS) — completion Guide for Great Britain (ODT, 91.2 KB).

The legal requirements for these messages submitted for movements starting in Northern Ireland are set out in the EU Delegated Regulation 2022/1636 on the Eur-Lex website.

2.2.1 eAD differences for movements between Northern Ireland and the EU

There are a number of differences between eADs related to movements between Northern Ireland and the EU and eADs for other movements. For movements between Northern Ireland and the EU:

fields 17e and 17f are shown as ‘Gross Mass’ and ‘Net Mass’ rather than ‘Gross Weight’ and ‘Net Weight’ — these fields can accept values to 3 decimal places
the Degrees Plato field is mandatory for movements of beer if either the consignor or consignee is located in an EU member state where Degrees Plato is used to tax beer
there is an optional free text field to capture details about the maturation period or age of alcohol products

Find out more about how to use EMCS.

2.3 Overview of the EMCS process

This describes a standard movement of excise goods in duty suspension between a consignor and consignee under EMCS.

In practice it covers an authorised warehousekeeper who is dispatching excise goods under duty suspension from a tax warehouse to another tax warehouse in the UK.

It also covers an authorised warehousekeeper in Northern Ireland who dispatches excise goods in duty suspension to a tax warehouse, a registered consignee or temporary registered consignee in an EU member state.

The consignor submits the electronic Administrative Document (eAD) prior to the dispatch of the goods.
The eAD is validated by the Excise Movement and Control System (EMCS). Part of this validation process will include a check of the UK System for the Exchange of Excise Data (SEED). If the eAD is rejected, an error message is sent to the consignor who must amend and re-submit the eAD with correct information.
Once validated, EMCS assigns the eAD an unique administrative reference code (ARC) and saves a copy within the system. The consignor and consignee receive the validated eAD, including the ARC, through EMCS.
The goods must be dispatched from the warehouse on the date and time of dispatch declared on the eAD. The ARC for the movement must travel with the goods.
The consignee receives the goods, checks the consignment against the eAD and makes a record of any excesses, shortages or losses.
The consignee completes the report of receipt and submits the message on EMCS no later than 5 days after receiving the goods, making sure any results from step 4 are included.
EMCS receives and validates the report of receipt against the eAD for the movement. A copy of the report of receipt is saved within the system. If the report of receipt is rejected, an error message is sent back to the consignee who must amend and re-submit the report of receipt with correct information.
After validation, the report of receipt is sent to the consignee and consignor. If shortages or losses have not been declared, the return of the report of receipt discharges the eAD. When the report of receipt submitted by the consignee confirms shortages or losses, HMRC will investigate further. The assessment and collection of any duties will be dealt with outside of EMCS.

2.4 Additional information for Northern Ireland consignors who split EMCS movements of energy

Northern Ireland consignors who dispatch consignments of energy products, in duty suspension, to EU member states can split a consignment on EMCS into 2 or more parts (up to a maximum of 9 parts) for subsequent delivery to different destinations outside Northern Ireland only.

Splitting cannot be done through the HMRC EMCS online service. A Northern Ireland consignor who wants to split a movement of energy products must purchase or develop their own software. But a Northern Ireland consignee can view and process any split consignments they receive from an EU member state through the online service.

A ‘new’ eAD is created for each split consignment, with its own unique ARC called a downstream ARC.

The original ARC, called the upstream ARC, is included as a reference field in each downstream ARC. It is possible for a downstream ARC to be split into further movements, up to a maximum of 9.

The total quantity of goods recorded on all downstream ARCs must equal the original quantity recorded on the upstream ARC. When an upstream eAD is replaced by downstream eADs, its status changes to ‘replaced’ on EMCS.

When splitting a consignment of energy products, the new consignee or place of delivery must be approved to receive the goods. If the split consignment is exported to a country outside the EU, the new destination for EMCS purposes will be the place from where the goods leave the EU. Actual splitting of the consignment can only take place in an EU member state that allows splitting.

Only one of the new destinations on the subsequent downstream eADs can be the same as that recorded on the upstream eAD (this includes changes to ‘unknown’ destinations).

For example, if the destination of the upstream eAD was ‘unknown’ then only one of the subsequent downstream eADs can have an ‘unknown’ destination.

But a consignment cannot be split to an ‘unknown’ destination unless the upstream eAD was already to an ‘unknown’ destination.

Also, you cannot send 2 or more splits of a consignment to exactly the same consignee and destination.

3. If EMCS is not available

3.1 General information

You need to apply fallback procedures if EMCS is not available. This is when you cannot:

access it
submit messages on it because of a system problem

A system problem may affect:

all users — for example when there is a fault with EMCS
just you — for example, when there is a fault with your hardware, software or internet connection

EMCS will display advisory messages when a problem concerning access or message submission affects all users.

It is your responsibility to make sure that you have robust systems in place.

The fallback procedures are intended to allow businesses to continue to move excise goods in duty suspension when there is a genuine system problem that prevents the use of EMCS. If you misuse the fallback procedures, HMRC may review the conditions and approvals necessary for you to continue to trade under duty suspension arrangements.

You should keep sufficient evidence to show why EMCS was not available.

In most cases you will not need to apply the fallback procedures described in this notice. If you need to use EMCS when it is not available, if possible you should wait for EMCS to become available and then submit messages in the normal way, rather than use the fallback procedures.

If you use commercial software to access EMCS that’s not available in time to submit your message, you should use the EMCS online service when it is possible and practical to do so, rather than use the fallback procedures.

If either EMCS or your commercial software is not available and it is not possible and practical to use the EMCS online service, you should then apply the fallback procedures described within this notice. It is for you to decide if you need to use the fallback procedures, subject to meeting the conditions set out in this notice.

If EMCS is not available in the UK and EU member state (for movements between Northern Ireland and the EU), the consignor or consignee in the UK or EU member state may also apply fallback procedures.

When EMCS becomes available in the UK and EU member state, the consignor or consignee will submit their message or messages on EMCS in the normal way.

Until 31 July 2024, you should also use these fallback procedures for all dispatches of duty paid excise goods from Northern Ireland to the EU or to submit a report of receipt for such goods received from the EU. Read Commercial importers, certified traders and tax representatives — EU trade in duty paid excise goods (Excise Notice 204b) for more information.

3.2 How to start a movement under fallback procedures

If you dispatch goods under duty suspension arrangements and EMCS is not available to submit the eAD, you must use the fallback procedure.

Before each consignment of goods leaves the warehouse you must complete both the:

fallback accompanying document (FAD) or a commercial equivalent in accordance with the correct legal requirements for the movement (read paragraph 2.2)
‘Notification of movement starting in fallback’ form or a commercial equivalent and email it to emcs.helpdesk@hmrc.gov.uk to notify HMRC that you’re dispatching goods using fallback procedures, the email subject title must be in the format ‘consignor Excise ID — Local Reference Number (LRN) for the movement — FAD’, for example:
- GBWK123456700 — 123456AB123 — FAD
- XIWK123456700 — 123456AB123 — FAD
- GBRC123985304 — 456123789 — FAD
- XIRC123985304 — 456123789 — FAD

The goods can now be dispatched. The completed FAD must accompany the goods and you must keep a copy of this document for your records.

When EMCS becomes available, you must, as soon as practically possible, submit an eAD for that consignment on EMCS.

You must make sure that:

the information you enter on EMCS matches the information on the FAD, including your local reference number (LRN)
you state on EMCS that the movement began in fallback

3.3 How to change the destination of goods under fallback procedures

When you need to change the destination of goods and EMCS is not available to submit the change of destination message, you must use the fallback procedure.

Before you change the destination of the goods you must:

complete the fallback change of destination form (FCoD) or a commercial equivalent in accordance with the correct legal requirements for the movement (read paragraph 2.2)
email the completed form to emcs.helpdesk@hmrc.gov.uk to notify HMRC that you’re changing the destination of goods using fallback procedures — the email subject title must be in the format ‘consignor Excise ID — ARC reference (or local reference number (LRN) for a movement that began and is still moving under fallback procedures) — COD’, for example:
- GBWK123456700 — 10GB12345678912345678 — COD
- GBRC123985304 — 456123789 — COD
- XIWK123456700 — 10XI1234567812345678 — COD
- XIRC123985304 — 456123789 — COD

Then you can amend the destination of the goods. You must keep a copy of the FCoD.

You should inform the original and, if appropriate, the new consignee, of the change in delivery address.

You should also tell the transporter to make a note on any accompanying (such as a printed eAD or FAD) or commercial documentation of the:

date and time you advised them of the change of destination
fact that the change of destination has been notified using fallback procedures
new place of delivery details and the new consignee details, if appropriate

If the movement requiring the change of destination has previously been submitted on EMCS, the ARC must be quoted on the FCoD.

If the movement has not been submitted on EMCS, and the goods are currently moving under fallback procedures, the same local reference number shown on the FAD must be quoted on the FCoD.

When EMCS becomes available, you must, as soon as practically possible:

submit the change of destination message on EMCS
make sure that the information you enter on EMCS matches the information on the FCoD

If the movement began and is still taking place under fallback procedures, when EMCS becomes available, you must first submit the eAD on EMCS showing the original destination details. You must then submit the change of destination message showing the amended destination details.

3.4 Additional information for Northern Ireland consignors — how to split a consignment of energy products under fallback procedures

If you need to split a consignment of energy products and EMCS is not available to submit the splitting operation message, before the consignment of energy products is split you must:

complete the fallback splitting operation form or a commercial equivalent in accordance with the requirements of EU Delegated Regulation 2022/1636
email the completed form to emcs.helpdesk@hmrc.gov.uk to notify HMRC that you’re splitting a consignment of energy products using fallback procedures, the email subject title must be in the format ‘consignor excise ID — ARC reference (or local reference number (LRN) for a movement that began and is still moving under fallback procedures) — splitting’, for example:
- XIWK123456700-10XI12345678912345678 — splitting
- XIRC123985304-456123789 — splitting

Then you can split the consignment of energy products. You must keep a copy of the fallback splitting operation form.

You should inform the original and new consignees that the consignment of energy products has been split. You should also tell the transporter to make a note on any accompanying or commercial documentation of the:

date and time you advised them of the splitting operation
fact that the splitting operation has been notified using fallback procedures
full details of each new split of the movement

If the movement requiring the splitting operation has previously been submitted on EMCS, the ARC must be quoted on the fallback splitting operation form.

If you have not submitted the movement on EMCS, and the goods are currently moving under fallback procedures, you must quote the same local reference number shown on the FAD on the fallback splitting operation form.

When EMCS becomes available, you must, as soon as practically possible:

submit the splitting operation message on EMCS
make sure that the information you enter on EMCS matches the information on the fallback splitting operation form

If the movement began and is still taking place under fallback procedures, when EMCS becomes available, you must first submit the eAD on EMCS showing the original destination details. You must then submit the splitting operation message or messages showing the amended details.

You can only split a consignment of energy products, and each of its subsequent splits, into a maximum of 9 new parts.

3.5 How to submit the report of receipt under fallback procedures

If EMCS is not available, in most cases you should wait for the service to become available and then provide your report of receipt on EMCS in the normal way.

However, if you are receiving EU duty paid goods in Northern Ireland you may be required to submit a fallback report of receipt. Further information on duty paid movements between Northern Ireland and the EU can be found in Commercial importers, certified traders and tax representatives — EU trade in duty paid excise goods (Excise Notice 204b).

4. Simplified procedures

Simplified procedures allow excise goods to move, under duty suspension arrangements, using alternative documents, either in paper or electronic format, instead of an eAD generated through EMCS.

If a document in an electronic format is used, the same conditions apply as with an eAD in electronic format — read paragraph 2.1

Simplified procedures apply where you are moving:

alcoholic liquors between approved UK production sites, registered premises and excise warehouses that are approved to receive and store the goods, and the ownership of the liquor remains with its producer during the course of the movement:
- if a movement guarantee is required, the alcoholic liquor must be accompanied by form W8, or commercial equivalent issued by the consignor
- if no guarantee is required, the alcoholic liquor must be accompanied by a commercial document issued by the consignor that includes:
  - a unique reference number
  - the consignor’s name and address
  - the date of dispatch
  - the name and address of the consignee
  - the address of the place to which the liquor is consigned
  - a description of the liquor including its quantity and, in the case of beer, its strength and packet size and a statement indicating that the liquor is being moved without payment of duty
tobacco products to or from a UK-registered tobacco factory, registered store or excise warehouse that’s used for the packaging, repackaging or testing of tobacco products, and ownership of the tobacco remains with its manufacturer during the course of the movement:
- the tobacco product must be accompanied by a document issued by the consignor that includes:
  - a unique reference number
  - the consignor’s name and address
  - the date of dispatch
  - the name and address of the consignee
  - the address of the place to which the tobacco product is consigned
  - a description of the tobacco product and a statement indicating that the tobacco product is being moved without payment of duty
alcoholic liquors and tobacco products from UK registered premises or excise warehouses to a place in the UK from where they will leave the territory of the UK and EU (direct exports), and the occupier of the premises is authorised in their own right to operate customs supervised export (CSE) (read paragraph 13.5)

Except for direct exports, the consignee receiving the alcoholic liquor or tobacco product must complete and return a certificate of receipt to the consignor no later than 5 business days after receipt of the goods.

Find more details about the intra-UK movements subject to simplified procedures in:

There is also more information in part 9 of The Excise Goods (Holding, Movement and Duty Point) Regulations 2010.

5. Receiving excise goods for warehousing

5.1 The receiving warehousekeeper’s responsibilities

Before entering into any commercial contracts, you must make sure that:

you’re authorised as an excise warehousekeeper
your premises are approved to receive the relevant excise goods — your warehouse premises approval will show the type of goods that can be stored there, either as a:
- general storage and distribution warehouse
- trade facility warehouse

You must also comply with any requirements in the guidance in Registration and approval of excise goods held in duty suspension (Excise Notice 196).

If your warehouse has been approved as a motor and heating fuel warehouse, you must also comply with the guidance in Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179).

You receive goods when you accept them into your approved premises, whether you unload them immediately or not. The excise goods are deemed to be warehoused when they enter the area approved by HMRC. This area will be identified on the plan attached to the warehouse approval letter.

Unless there are specific conditions attached to the approval, a warehousekeeper may receive duty-suspended excise goods from:

other UK warehouses
imports where the goods are consigned from the place of release to free circulation by a registered consignor
warehouses in an EU member state — for warehousekeepers with approved warehouses in Northern Ireland only

If the warehouse approval allows, you can also receive and store duty-paid goods.

HMRC does not allow UK-manufactured tobacco products intended for home use to be stored in an excise warehouse, unless the goods are intended for a duty-free purpose, for example:

export
ships’ or aircraft stores
visiting forces
export shops
supply to embassies within the UK

When you receive duty-suspended goods into your excise warehouse, you must:

make sure that the owner of the goods, or their duty representative is entitled to deposit them in an excise warehouse — you must:
- be fully satisfied that the owner or duty representative has no conditions on their approval that places restrictions on the storage of the goods — any conditions of approval will be found at Appendix A of the approval letter and on page 2 of the certificate of registration issued by HMRC
- get a complete copy of the owner’s or duty representative’s certificate of registration to be satisfied that any conditions of their approval can be met before the goods are stored in your warehouse
place the goods in your warehouse without delay
enter the goods into your stock account records making sure that all goods are marked in line with your procedures agreed with HMRC at the time your premises were approved
inspect secured vehicles on arrival to confirm that they are still secure, including locks and seals and that the seal numbers are correct
check that all consignments have arrived intact
make a thorough external examination of all containers, casks and packages
investigate any deficiencies, or any indication of interference
measure all bulk receipts of alcoholic liquids for quantity and strength, unless HMRC has authorised you in writing to use a different procedure
take an account of alcoholic liquids in casks, drums or cases, unless you’re satisfied that a clear receipt for the advised quantity can be given
discharge the movement either by providing a report of receipt under EMCS procedures or endorsing the manual document required to accompany non-EMCS duty-suspended movements
adopt an appropriate system for checking bottles and strengths with the documents — check bottle labels for strength with the accompanying documents and goods

You may warehouse goods which arrive before you have obtained a copy of the owner’s or their duty representative’s certificate of registration. But during this ‘initial period’ the goods can only be removed to home use on payment of all duties.

Only after you hold a copy of the owner’s registration certificate is this obligation relaxed. The initial period is 72 hours, starting from the time when goods are first deposited in an excise warehouse excluding Saturday, Sunday and bank holidays.

If you do not get a copy of the owner’s certificate of registration within this initial period, you have to pay the duty on those goods. You can avoid the liability for the duty by immediately abandoning the goods to HMRC.

This also applies when an owner or duty representative ceases to hold a registration, or duty-suspended goods are sold in warehouse to an unregistered owner. In these circumstances, you as the warehousekeeper are jointly and severally liable with the last owner or duty representative to pay the duty.

You can avoid liability for the duty on those goods by immediately abandoning the goods to HMRC (read section 9).

It’s in your own interest to:

carry out sufficient checks to confirm that all your customers are genuine traders who are aware of their responsibilities in respect of excise goods
monitor EMCS and be aware of all consignments dispatched to you

Any goods in duty suspension are deemed to be warehoused by you when they physically enter the approved area of your warehouse.

You must take account of the goods (count and make sure that the description of the goods is the same as on the eAD or accompanying documents) as soon as they enter the warehouse.

Your records should be referenced against the ARC (or LRN) for the movement.

As EMCS does not contain any information of if the goods are, or have been, subject to a previous sale in warehouse that could affect the VAT status of the goods, this information should be contained on any commercial documents accompanying the load. If you’re not sure about the VAT status of the goods you should contact the dispatching warehousekeeper.

A report of receipt must be sent by EMCS to the dispatching warehousekeeper to advise them that the goods have reached the receiving warehouse or, in the case of goods that arrive under simplified procedures, by endorsing and returning the relevant copy of the manual accompanying document. This act discharges the financial security provided to cover the movement.

You must send the report or certificate of receipt to the consignor within 5 days of the goods being warehoused. If you do not, you’re failing to comply with UK law and the conditions of your authorisation and approval.

As a result, HMRC may:

impose a financial penalty
consider revoking your authorisation and approval

If any expected goods do not arrive at your warehouse within a reasonable time and you do not know the reason for the delay, you should advise the consignor and the HMRC excise helpline immediately. You should also try to find out what happened to the goods.

If there’s a serious incident affecting the movement, for example an accident or theft, you should tell the HMRC EMCS helpline immediately.

HMRC will raise an event report on EMCS, based on the information you provide. This message will be visible to both consignor and consignee.

When an event report is raised by the authorities in the UK or in an EU member state there may be documents attached, which you’ll not be able to view on EMCS. If so, the message you receive will tell you that there is an attachment that has been removed.

You can get a copy of the attachment by contacting the HMRC EMCS helpline.

In general, the liability to pay the duty on goods which fail to reach the consignee falls upon the person who provided the financial security for the movement.

If you’re not sure if you should warehouse and account for any goods, contact the HMRC excise helpline.

5.2 Receipt of duty-suspended goods under EMCS procedures

5.2.1 Receiving goods under EMCS and the accompanying documents

If you’re moving excise goods recorded on EMCS, then the ARC for that movement must be made available to relevant authorities, on request, at all times during their transportation.

The document showing the ARC can be either in:

paper form
electronic form — read paragraph 2.1

Unless it is a movement between Northern Ireland and the EU, you must make sure that the person responsible for the goods during their transportation is provided with either:

a copy of the eAD
commercial documentation showing the ARC (either in paper or electronic form — read paragraph 2.1)

If the goods are being transported in a sealed container or tank, this document does not need to be kept physically inside it or attached to the container. But it must travel with the goods and must be produced, on request, to the relevant authorities at any point in the journey.

If you discover a shortage or excess of goods on receipt

If EMCS is not available for you to complete and submit the report of receipt, you should wait for EMCS to become available and then provide your report of receipt on EMCS in the normal way.

If EMCS is available but you’re unable to submit a report of receipt, you should contact the HMRC EMCS helpline.

If the problem is with the system and cannot be resolved, you’ll be issued with a manual closure request form. You must complete and return this form to the helpline without delay, as the movement will remain open on EMCS until the required information is received.

On receipt of a fully completed manual closure request form related to a receipt of goods into Northern Ireland from an EU member state, HMRC will forward it to the authorities in the member state of dispatch for them to close the movement on EMCS. You and the consignor should receive a message through EMCS confirming that the movement has been manually closed.

It is your responsibility to access EMCS regularly so that you’re aware of any current or outstanding EMCS movements to your warehouse.

You could be liable to a financial penalty if you fail to receipt the movements you receive through EMCS.

Also, for movements between Northern Ireland and an EU member state, if a movement is not closed on EMCS the consignor may need to pay the excise duty in the EU member state of dispatch.

5.2.2 Receiving goods under an EMCS fallback accompanying document

If EMCS is temporarily unavailable the consignor may dispatch the movement to you under the cover of a fallback accompanying document (FAD).

You’ll be able to identify this document because it will include the title ‘fallback accompanying document for movements of excise goods’.

The FAD will not normally include an ARC (because the movement is not recorded on EMCS), but instead will show the local reference number (LRN) provided by the consignor that will uniquely identify the movement.

As soon as EMCS is available again the consignor will record the movement on EMCS retrospectively.

You should wait for your movement to be shown on EMCS and then provide your report of receipt on EMCS in the normal way.

You can use the LRN provided by the consignor to identify your movement on EMCS.

5.2.3 Additional information for Northern Ireland warehousekeepers receiving goods under a fallback accompanying document

Northern Ireland warehousekeepers should be aware that consignors from France can generate a ‘fallback ARC’ when dispatching goods using fallback procedures. So it is possible to receive a FAD from France showing an ARC.

For movements received in fallback from France, you may also use the fallback ARC to identify your movement on EMCS.

The requirements to examine the goods received and count the received amounts (for shortages and excesses) as detailed in paragraph 5.3 still apply.

5.3 Procedures to follow for shortages and excesses

You must take account of the goods (count and make sure the description of the goods is the same as on the eAD, FAD or commercial documentation, as applicable) as soon as they enter the approved area of the warehouse. It is possible that there may be discrepancies with the goods that you receive.

You must compare the quantity shown on the eAD or accompanying paper document against the quantity actually received and note any discrepancies on the report or certificate of receipt.

If there is a shortage on receipt you must:

enter the goods as actually received in your records which should be referenced to the ARC for EMCS movements or other individual unique reference number for non-EMCS movements
record details of the shortage including description of goods and amount of shortage in the appropriate part of the report of receipt on EMCS or on the certificate of receipt of the manual document used for simplified procedures
send a copy of the printed eAD or commercial document along with any supporting documents to explain the discrepancy to the HMRC excise helpline

Operators of motor and heating fuel Warehouses should also refer to Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179) for bulk movements by sea.

HMRC may remit (cancel) the duty in which case we’ll endorse the printed eAD or commercial document containing the ARC. If we think that the loss is chargeable with duty, we’ll note the printed eAD or commercial document accordingly. We’ll then return the printed eAD or commercial document to you.

If you discover excesses and the excess goods are:

the same as those detailed on the eAD or commercial document (for example, 5 additional cases of the same goods received and you want to keep the goods in duty suspension), you must record the receipt of the goods in your records and also record the excess on the report of receipt on EMCS using the ‘accepted although unsatisfactory’ option
the same as those detailed on the eAD or commercial document (for example, 5 additional cases of the same goods received) and you do not want the excess goods, you should refuse the excess goods by not taking them into your stock records and by recording the excess on the report of receipt using the ‘partial refusal’ option on EMCS — it will then be the consignor’s responsibility to re-direct the excess goods to another approved destination, you must keep a full audit trail
different from those described on the eAD or commercial document, the excess goods are no longer in duty suspension as they have not moved under cover of an eAD — the UK excise duty for the excess goods must be paid immediately by the person holding the goods and the report of receipt must be completed as normal for the goods shown on the eAD

You can submit an explanation of reason for shortage or excess message on EMCS. Unlike the information that can, and should, be entered on the report of receipt when reporting a shortage or excess, this message is only visible to you (the creator of the message) and HMRC.

The only exception to this is where a Northern Ireland warehousekeeper receives a consignment of goods from an EU member state. In this case, any shortage or excess message you create is also visible to the authorities in the EU member state of dispatch.

This can be useful where you may want to provide confidential information about a shortage or excess which you do not want to share with the consignor.

5.3.1 Receiving whisky or whiskey in casks from maturation warehouses

Due to the normal losses that occur during the maturation process, it is often difficult for the receiving warehouse to work out any losses in transit when moving casks from warehouse to warehouse. Normally, the total loss within the cask is worked out using data from the time of filling to the time of disgorging. Only at this time can the losses due to maturation be worked out, accepted or challenged.

5.4 Procedures to follow when goods arrive without the correct movement documents

Except for movements to Northern Ireland from the EU, if goods arrive without a printed copy of the eAD or commercial document containing the ARC, a fallback accompanying document or a document required for movements under simplified procedures, contact the consignor to get copies of the original documents.

If the consignor is unable to supply these copies, then the goods are not considered to be in duty suspension. You should notify the HMRC excise helpline immediately as the excise duty is due.

5.5 Receiving an incorrect consignment

If the goods described on the eAD are not what you ordered but you choose to take them into the approved area of your warehouse, you must:

enter the goods into your stock accounts
submit the report of receipt accepting the goods

With agreement from the supplier, you can consign the incorrect goods back to them under a new duty suspension movement through EMCS. Or you can apply for HMRC’s permission to destroy the goods by contacting the HMRC excise helpline.

If you’re not prepared to accept the goods and they have not yet entered the approved area of your warehouse, you should refuse them by selecting the refusal option when completing the report of receipt. It’s the consignor’s responsibility to re-direct the incorrect goods to another approved destination.

5.6 Rejecting goods before arrival

You can reject the movement before the goods arrive at your premises if:

you receive an eAD on EMCS
you’re not willing to accept the consignment

You should submit a rejection message through EMCS. You can reject a consignment at any point during the movement but once the goods have arrived at your premises and before they enter the approved area of your warehouse, you should use the refusal option by completing the report of receipt instead of submitting a rejection message.

It’s the consignor’s responsibility to amend the consignee or place of delivery once an eAD has been raised. In cases where other information on the eAD is incorrect, and the consignee is unwilling or unable to accept the consignment because of an error, a change of destination will need to be submitted by the consignor to return the goods back to the despatching warehouse or some other approved person or premises. The consignor can then discharge the original eAD and raise a new one using the correct information. A consignor cannot raise a new eAD for goods which are still in transit or have already arrived at their destination.

6. Warehousing for export

Warehousing for export is the warehousing of excise goods (excluding alcoholic liquors subject to excise duty) that are already released for consumption (UK duty paid), for removal to a destination outside the UK. This means that warehousing for export arrangements cannot be used for alcohol such as wine, beer or spirits.

The owner of the goods, subject to eligibility, may be able to claim a refund of the excise duty under the excise duty drawback scheme.

You must not accept the qualifying goods unless they arrive with a warehousing advice note.

You must:

take account of the goods as you would for any other receipt
record any discrepancies and the stock account number on both copies of the warehousing advice note
sign the certificate of receipt on one copy and return it to the owner

You should record in the stock account that the goods are for export only. They must be exported within 6 months of receipt into the warehouse.

If an owner no longer wants to export goods warehoused for export, they must ask for HMRC’s prior permission to remove the goods for another purpose. If we agree to this request, we’ll ask for repayment of the drawback from the claimant and provide a receipt. You should keep a copy of the receipt in your records.

Find out more information about Excise duty drawback (Excise Notice 207).

7. Receipts from outside the UK

7.1 General information on warehousing of excise goods from outside the UK

Excise goods originating from outside the UK and sent to the UK under customs import arrangements may be entered into a UK customs warehouse approved to receive excise goods.

When those goods leave the customs warehouse, excise duty would be due on them unless they are either:

consigned by a registered consignor under excise duty suspension arrangement to someone authorised to receive them (read paragraph 7.2)
immediately entered into an excise approved area at the same site as the Customs approved area when both approved areas are under the control of the same legal entity in accordance with paragraph 7.2.3

7.1.1 Additional information for warehousekeepers receiving goods in Northern Ireland

In addition to the information in paragraph 7.1 if you’re an authorised warehousekeeper based in Northern Ireland you are permitted to receive excise goods from an EU member state.

Find more information on receiving goods into a warehouse in Northern Ireland in section 17.

7.2 Registered consignors

7.2.1 General information

A registered consignor is a natural or legal person approved by HMRC who, in the course of their business and under the conditions set by us, dispatches excise goods under excise duty suspension arrangements to persons authorised to receive duty-suspended goods upon their release to free circulation or authorised use.

Excise goods are considered to be in free circulation or authorised use after the completion of all the import declaration formalities associated with the appropriate customs procedure code (CPC).

You will find more details of the customs procedure codes in UK Trade Tariff: volume 3 for CDS.

HMRC is reviewing all the customs procedure codes within the 07 and 68 series in respect of how to declare the import VAT. Until the outcome of this review, you must follow the present requirements of the customs procedure codes.

To be approved and registered as a registered consignor, you should refer to Registration and approval of excise goods held in duty suspension (Excise Notice 196).

To move goods in excise duty suspension as a registered consignor, you must register and enrol for EMCS (read paragraph 2.1).

Once you’ve been given access to EMCS you may start to create eADs and you must complete the eAD correctly to receive an ARC. If you do not the movement cannot be started.

It is essential that you include the customs import entry number in the appropriate field on the eAD.

If EMCS is not available to complete and submit the eAD, start the movement using fallback procedures (read paragraph 3.2).

Registered consignors cannot store goods under excise duty suspension arrangements. They may cancel a movement for a submitted eAD, providing that the:

dispatch date on the eAD has not passed
goods have not been dispatched from the place of importation and are still held in a customs suspensive regime

You must make sure that a movement guarantee is provided and recorded on the eAD.

If you release the goods without a valid guarantee or without permission to use that guarantee, then you (as the registered consignor) have not complied with your legal responsibilities and may be liable to the duty and a financial penalty. HMRC may also revoke your approval.

Find more information on:

the movement guarantee requirements for registered consignors (read section 10)
Registration and approval of excise goods held in duty suspension (Excise Notice 196)

Northern Ireland registered consignors

A Northern Ireland registered consignor must use their HMRC allocated ‘XI’ excise ID to move goods in excise duty suspension both within the UK and to the EU.

If you’re a registered consignor based in Great Britain and need to move goods in excise duty suspension through Northern Ireland to an EU member state, you can also apply to HMRC to amend your authorisation to allocate an XI excise ID to your approval.

When EMCS has allocated the ARC, the goods may leave the UK port, airport or other location at which they have been placed into free circulation or authorised use and travel to the destination warehouse or other allowable destination. You must provide details of the ARC to the person transporting the goods so that it can be presented if requested during the journey.

If you intend to split a consignment of energy products in excise duty suspension for dispatch to destinations outside the UK, follow the correct procedure for splitting on EMCS in paragraph 2.4.

7.2.2 Allowable destinations to which goods may be dispatched

Goods which have been placed into free circulation or authorised use in Great Britain can be dispatched in excise duty suspension by a registered consignor to a tax warehouse in the UK.

Goods which have been placed into free circulation or authorised use in Northern Ireland can be dispatched in excise duty suspension by a registered consignor to:

a tax warehouse in the UK or an EU member state
a registered consignee in an EU member state
a temporary registered consignee in an EU member state
a place of exit from the EU, either as a direct export from Northern Ireland or an indirect export through an EU member state
an exempt consignee in an EU member state
an unknown destination, in the case of energy products transported by sea or inland waterways

7.2.3 Dispatch of goods from a customs suspensive regime

If goods are to be moved from a customs suspensive regime following release to free circulation (for example, from customs warehousing to an excise warehouse) you must access EMCS and submit an eAD. But if the customs warehouse premises and the excise warehouse premises are located within the same site under the same legal entity, EMCS and registered consignor procedures do not apply where the transfer of the goods from the customs warehouse, and receipt into the excise warehouse is recorded in the stock records of both approved premises.

For imports into Northern Ireland which are entered to excise duty suspension (except where the importation takes place inside a tax warehouse), the person submitting the import declaration must provide details of the excise IDs (in the appropriate fields on the declaration) for the:

registered consignor
intended consignee for the onward excise movement

Separately, they may also be asked to provide evidence that the goods are intended to be delivered onwards to an EU member state.

7.2.4 Change of destination

A registered consignor can change the destination of a movement within EMCS either in the course of the movement or following receipt of a refusal or rejection message from the consignee through EMCS.

You must access EMCS and amend the appropriate destination fields on the eAD, which includes selecting a new consignee for delivery.

As a registered consignor you cannot hold goods in duty suspension. You can only change the destination to a new consignee and not return the goods to yourself.

A destination may only be amended if the new destination is:

a tax warehouse in the UK or, for movements started by a registered consignor in Northern Ireland, a tax warehouse in an EU member state
a place from where the goods will leave the UK or, for movements started by a registered consignor in Northern Ireland, a place where they will leave the EU
in an EU member state and is for movements started by a registered consignor in Northern Ireland to:
- a registered consignee
- a place of direct delivery
- a temporary registered consignee

You should advise the transporter to make a note on any accompanying or commercial documentation of the:

date and time you advised them of the change of destination
new place of delivery and, if appropriate, new consignee details

Read paragraph 3.3 if EMCS is not available to complete and submit the change of destination message.

7.2.5 Shortages during a duty-suspended movement

Shortages found on receipt of the goods will be reported by the consignee. HMRC will charge duty on shortages unless you can prove that the shortage was due to an accident or natural causes. Liability for the duty during the course of a removal rests with the person who provides the security for the movement.

Anyone involved in the irregularity and who was aware, or should reasonably have been aware, that it was an irregularity, is jointly and severally liable to pay the duty with the person who provided the movement guarantee.

HMRC may remit the duty providing you:

can prove that the loss is accidental or due to natural causes
follow all the conditions and procedures set out in this notice
have followed other written directions from HMRC

7.2.6 Discharge of a movement

The movement is discharged when you, as the registered consignor, have received a report of receipt through EMCS. Find information about discharging movements of goods removed for export outside the UK and EU in section 13.

The receiving warehousekeeper must send a report of receipt through EMCS to you within 5 days of receipt of the goods.

Dispatching registered consignors must:

make sure that they access EMCS regularly and check that they have received the report of receipt
check the report of receipt for any discrepancies
record it in their records accordingly

If you have not received a certificate of receipt within 5 days of having delivered the goods to the consignee you must contact the HMRC excise helpline.

For movements started by a registered consignor in Northern Ireland

If EMCS is not available in an EU member state, you may receive a fallback report of receipt from the consignee in that EU member state — the document will be sent through the authorities of the member state.

If you receive a fallback report of receipt, check EMCS to determine if the electronic report of receipt message has already been submitted. If the report of receipt has:

been submitted on EMCS — the fallback report of receipt can be discarded
not been submitted on EMCS — the consignee will submit this message to discharge the movement when EMCS becomes available in the EU member state, you should keep the fallback report of receipt until the EMCS report of receipt is received

7.2.7 Irregularities

If you find out that goods dispatched by you have not arrived at their destination, you must contact the HMRC excise helpline immediately. You must also try to find out what happened to the goods.

In general, the liability to pay the duty on goods which fail to reach the consignee falls upon the person who provided the movement guarantee. Anyone who participated in the irregularity and who was aware, or should have reasonably been aware, that it was an irregularity, is jointly and severally liable to pay the duty with the person who provided the movement guarantee.

But, where you fulfil your legal responsibilities in respect of goods removed under cover of an eAD and an irregularity occurs during the movement, if you did not provide the security for the movement and are not responsible for the goods reaching an excise duty point, you’re not liable to pay the duty due.

You’re also not liable to pay the duty due where you fulfil your legal responsibilities in respect of goods removed under cover of an eAD and an irregularity occurs during the movement, provided you:

did not provide the security for the movement
are not responsible for the goods reaching an excise duty point

The rate of duty which applies will depend on the member state where the loss occurred, was detected or was deemed to have occurred.

If the consignee retains any excess goods, then they take on the duty liability for those goods. They should note the details of excesses on the report of receipt.

7.2.8 Goods brought into Great Britain at Goods Vehicle Movement Service locations

The Goods Vehicle Movement Service is used to automate the arrival of import declarations at ports operating the pre-lodgement model for goods brought into Great Britain from:

the EU
outside the EU

Check paragraph 7.2.9 to find out about goods brought into Great Britain from the EU that pass through Northern Ireland.

For goods imported into excise duty suspension, this means that you cannot delay notification that goods have arrived in Great Britain until the end of the following working day, or delay the submission of the eAD by EMCS.

As the Goods Vehicle Movement Service automates the arrival of the import declaration as close to ‘real time’ as possible in relation to the physical arrival of the goods, you need to make sure that an eAD is in place before the time of the crossing.

You also need to make sure that the date and time of dispatch has passed, before arrival in the UK.

You should include the expected time of crossing as the date and time of dispatch.

Excise goods which do not have a valid UK eAD at the time of arrival of the import declaration are not deemed to be in excise duty suspension in the UK. This may result in you being liable for UK excise duty and your goods could be seized. Financial penalties may also apply.

These rules apply to Goods Vehicle Movement Service locations only.

7.2.9 Excise goods brought into Great Britain from the EU passing through Northern Ireland

You’ll need to complete an import declaration for excise goods passing through Northern Ireland from the EU (including Ireland) into Great Britain. As these are controlled goods the submission of the customs declaration cannot be delayed.

You must manually arrive your full import declaration or simplified frontier declaration on the Customs Declaration Service by 11:59pm on the next working day after the day the goods arrived in Great Britain. Further information is available on Trading and moving goods in and out of Northern Ireland.

For duty suspended movements you will need to submit an eAD on EMCS. You can delay the entry on EMCS up to 11:59pm on the next working day after the day the goods arrive in Great Britain. However, you must enter the excise movement guarantee reference on the import declaration on Customs Declaration Service.

When you complete the eAD, you will need to tick the ‘deferred movement’ box so that you can enter the correct date of dispatch, which will be in the past.

Goods declared to excise duty suspension that do not have either an eAD in place or the excise movement guarantee reference number recorded on the import declaration are not in excise duty suspension and may be liable to forfeiture and penalties as well as assessment of the duty owed.

7.3 EU VI-1 forms

Check the rules for importing and exporting wine and moving wine products to Northern Ireland.

7.3.1 Wine standards

On EMCS, when moving wine within Great Britain, the only allowable wine product categories are 4 ‘imported wine’ and 5 ‘other’. Any other option (1 to 3) will generate an error message and the movement will not be allowed to be submitted.

For Northern Ireland movement dispatches, all of the following categories are allowable and will not cause error messages.

Wine product category	Explanation
1	Wine without protected designated origin or protected geographical indication
2	Varietal wine without protected designated origin or protected geographical indication
3	Wine with protected designated origin or protected geographical indication
4	Imported wine
5	Other

Entry 17.2 of the eAD completion guide, Submitting an electronic administrative document for excise goods, contains further information on wine categories and how to use them when completing an eAD.

8. Buying and selling duty-suspended goods in warehouse

8.1 General information

Owners of duty-suspended excise goods held in a warehouse may sell their goods in duty suspension at any time.

But the goods may only remain in duty suspension within the excise warehouse if the purchaser is:

a registered owner
a person who is not required to be a registered owner in respect of wine, other fermented products (previously known as made-wine) and energy products
a non-UK based owner who has appointed a duty representative to act on their behalf
the authorised warehousekeeper
not a revenue trader
a motor and heating fuel warehouse operator or owner of hydrocarbon oil within such a warehouse

If the goods are sold to someone who is not entitled to hold them in duty suspension, the duty on the goods immediately becomes due. The goods must be removed to home use.

The owner of the goods at the time of the sale will be jointly and severally liable to pay duty with:

the warehousekeeper
the purchaser of the goods immediately following the duty point
any duty representative appointed by the owner or the purchaser of the goods

For more information read Registration and approval of excise goods held in duty suspension (Excise Notice 196).

Energy products, wine and other fermented products are not deemed to be relevant goods for the purposes of Warehoused Goods Regulations (WOWGR). This means an owner of these types of goods in an excise warehouse does not need to be a registered owner.

8.2 The seller’s responsibilities

It is in the seller’s interest to find out, before the sale of relevant goods, if the purchaser is:

a registered owner
an owner not established in the UK who has a duty representative
not a revenue trader

Before making any sale you, as the current owner of the goods, should:

contact the HMRC excise helpline and ask for confirmation of the purchaser’s registration
inform the warehousekeeper that the goods are to be sold and give details of the purchaser’s registration

If you fail to advise the warehousekeeper about a change of ownership of the goods, the goods are liable to forfeiture.

8.3 The purchaser’s responsibilities

When buying warehoused goods held in duty suspension, you should make sure that the seller:

is a registered owner
has appointed a duty representative, if not established in the UK
is the authorised warehousekeeper
is not a revenue trader

If not, the duty will become due on those goods upon the expiry of the initial period following their deposit in the warehouse — that is 72 hours after they were deposited, excluding certain specified days. This applies even if you’re a legitimate trader who has bought the goods in good faith.

Before making any purchase, you should:

contact the HMRC excise helpline and ask for confirmation of the seller’s registration
inform the warehousekeeper that the goods are to be purchased and give details of your registration to the warehousekeeper

9. Abandoned excise goods

If you, as warehousekeeper of relevant goods, want to abandon them to HMRC, you must advise the HMRC excise helpline of your request and provide:

warehousekeeper details:
- company name, address, telephone number and contact name
- Warehoused Goods Regulations registration number
- warehouse approval number for the warehouse where the goods are stored
owner or duty representative details:
- company name, address and telephone number
- Warehoused Goods Regulations registration number if applicable
details of the goods:
- stock rotation number
- description of goods
- the number of cases
- quantity in bulk litres

The excise team will consider and carry out any enquiries as necessary. They will advise you if your request has been accepted or will ask you to provide more information. You’ll then receive written confirmation of the decision.

If your request is approved, HMRC will aim to remove the goods as soon as is practically possible. This is normally carried out by HMRC’s designated contractor.

You should update your stock records to show the name of the contractor who removes the goods.

10. Removal of goods from warehouse

10.1 General information

You may remove goods from an excise warehouse for:

home use on payment of duty, sometimes referred to as released for consumption — but you cannot remove UK manufactured tobacco for home use — read Excise Notice 476: Tobacco Products Duty
dispatch under duty suspension to other approved UK warehouses, including those on the Isle of Man
dispatch under duty suspension from a place of dispatch in Northern Ireland to approved persons or premises in an EU member state
export to countries from the UK in duty suspension
entitled miscellaneous removals

This list is not exhaustive.

If you wish to supply UK duty paid goods from a Northern Ireland warehouse to a customer in an EU member state, you need to follow the requirements in Commercial importers, certified traders and tax representatives — EU trade in duty paid excise goods (Excise Notice 204b).

You should contact HMRC before removing goods from the warehouse for any other purpose unless we make a specific reference to that purpose in this notice or in your approval.

Before removal you must:

prepare the appropriate documents as EMCS does not contain any information of if the goods have been subject to a previous sale in warehouse that could affect the VAT status of the goods — this information should be contained on any commercial documents accompanying the load
take account of the goods to be removed and carry out any necessary examination, unless HMRC has agreed otherwise
write the goods out of your stock account
make sure that duty is paid or accounted for on removals for home use
make sure that a valid movement guarantee is provided and recorded on the eAD for all movements in duty suspension — operators of motor and heating fuels warehouses should read Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179) for bulk movements by sea and pipeline
make sure that you supervise and check the removal is accurate before the goods leave the warehouse

You should carry out sufficient checks to confirm that all your customers are genuine traders who are aware of their responsibilities in respect of excise goods.

You must individually record all removals for stock return purposes and keep a schedule of different types of removals.

HMRC may restrict removals from your warehouse. For example, restrictions may be placed on the removal of tobacco products to home use in the run up to the Chancellor’s Budget.

If you remove tobacco to home use in the period from 1 January to the date of the Budget, read Notice 85C anti-forestalling restrictions: cigarettes.

If HMRC has restricted your approval to specific types of removals, for example, repacking operations and returning the goods to the original supplying warehouse, you may ask to remove goods for a different purpose, such as exports, by asking for a variation to your approval — read Registration and approval of excise goods held in duty suspension (Excise Notice 196). HMRC will consider the requests.

We may revoke your approval if you remove goods for purposes other than those in your approval.

Businesses may apply for certificates of age for spirits to confirm the age of products exported to overseas markets. Certificates are issued by HMRC where the age of UK manufactured products may be verified by checking supporting documents.

You should contact the HMRC excise helpline for more information or email the Spirits and Drinks Verification Unit (SDVU) at enquiries.sdvs@hmrc.gov.uk.

10.2 Financial security for duty-suspended movements

All duty-suspended movements from an excise warehouse or the location where they were placed into free circulation must be covered by financial security. This also applies to duty paid movements between Northern Ireland and the EU dispatched on or after 13 February 2023.

Operators of motor and heating fuels warehouses should read Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179) for movements by sea and pipeline.

Read about the financial security required for the different types of duty-free removals from an excise warehouse in section 14.

Authorised warehousekeepers must make sure that financial security for the movement is in place before removing goods from their warehouse.

The movement security required for duty-suspended removals from an excise warehouse may only be provided by the:

warehousekeeper of dispatch
warehousekeeper of receipt — for movements between UK warehouses
last owner of the goods whilst warehoused — not a duty representative
transporter

By transporter we mean someone who normally physically transports excise goods. It can also include someone appointed to act as the transporter who sub-contracts the actual transportation to another haulier.

In this instance, while the transporter does not physically transport the goods themselves, they must:

have a direct connection with the goods being transported
have a permanent place of business or residence in the UK
be responsible for making sure that the goods arrive safely at the intended destination
invoice and receive payment directly for providing the transport

A transporter acting purely as a broker and who only receives commission or an arrangement fee for their transport services cannot provide the movement guarantee.

There are different guarantee arrangements for movements started by a registered consignor, read Registration and approval of excise goods held in duty suspension (Excise Notice 196).

The financial security is a guarantee provided by an approved guarantor who agrees to pay money to HMRC if an irregularity occurs, or is deemed to occur, during a movement of excise goods in duty suspension.

A warehousekeeper, owner or transporter who wants to apply for a movement guarantee should contact the HMRC excise helpline.

HMRC only accepts guarantees as a form of security. We’ll issue the draft guarantee form to you when we have agreed your level of security. If you disagree with the level of the guarantee you have the right to an independent review of our decision.

You must ask your guarantor to complete the guarantee form and return it to us. If satisfied, we’ll accept the guarantee and return a signed copy to the guarantor.

Only companies approved by us may act as guarantors. Most banks and insurance companies have this approval, but contact us if you want to check a particular company.

A guarantee is valid only when the named principal has a permanent place of business or residence in the UK.

The cost of maintaining the guarantee is a commercial arrangement between you and the guarantor.

You should be aware that your liability as principal is not restricted to the size of the guarantee. We can assess you for all outstanding duty arising from any irregularity covered by your guarantee. These liabilities may be much greater than the size of your guarantee.

If the owner or transporter provides the security, the dispatching warehousekeeper must hold written confirmation from the principal confirming that the warehousekeeper may use their guarantee.

HMRC will base the level of the movement security on the average amount of duty-suspended on one week’s movements. This is worked out by reference to all movements in the previous 12 months, allowing for seasonal variations.

To decide the level of guarantee, we’ll assess the likely risk to the revenue in each circumstance and will retain the right to require greater levels of security. In particular, we may also ask traders to provide a guarantee which will cover the maximum amount of duty suspended in a single movement. If we do this, we’ll tell you which procedures you must follow.

The minimum level of security required for movement guarantees is £20,000.

In exceptional cases, warehousekeepers or owners of excise goods who move goods in duty suspension infrequently may apply for a movement guarantee at a level less than £20,000. Each request is considered on its own merit. The level of the guarantee will be based on the total amount of duty on the goods moving in duty suspension.

We set the following levels:

Potential duty on an average week’s movements	Level of security
less than £1 million	25% of potential duty
more than £1 million but less than £25 million	£250,000
more than £25 million but less than £100 million	1% of potential duty
more than £100 million	£1 million

For all new guarantee holders including owners and transporters, we’ll base our calculations on the anticipated level of duty suspended in one average week’s movements, subject to the requirements of the minimum level of guarantee. Principals may apply in writing for reductions in the size of the guarantee.

We may refuse to allow any request for a reduction in the level of your guarantee.

Circumstances where we may allow reductions

If the principal has provided security for the previous:

2 consecutive years, and we have made no claim against the security and no significant irregularity has been identified in respect of any movements covered by the security — the level of security is reduced by 50%
4 consecutive years, and we have made no claim against the security and no significant irregularity has been identified in respect of any movements covered by the security, the level of security is reduced by a further 50% (that is 25% of the original level of security) — normally subject to a minimum level of £20,000

If we are obliged to make a claim against a reduced level of security, we’ll issue a notice of withdrawal to the guarantor and principal. The level of cover provided by any replacement guarantee will revert to at least 100% of the amounts shown in the table of circumstances.

If we make a claim against a guarantee we’ll critically review your warehousekeeper authorisation and premises approval and, as a result of this action, we may impose additional conditions, ask for additional security or revoke the authorisation or approval for all the sites which you operate.

10.3 Keeping records of the financial guarantee

You, as the warehousekeeper or registered consignor, do not need to keep a record for this purpose providing that for each movement you have information on the:

consignee of the goods
reference number of the removal document, for example, the ARC
date of removal
description of the goods
quantity of the goods

Transporters and owners must make sure that their records comply with this requirement.

10.4 More information on financial security

10.4.1 Changes of principal in transit

Changes of principal are not allowed. The principal has liability for the whole of the movement and this liability is not discharged until the dispatching warehouse or registered consignor receives a satisfactory report or certificate of receipt.

10.4.2 Joint movement and premises guarantees

If your security covers premises and movements, you must work out each element separately and then add them together to get a total figure, read Registration and approval of excise goods held in duty suspension (Excise Notice 196).

10.4.3 Subsidiary or associated companies

A guarantee may be taken out in the name of a parent company that also provides cover for subsidiary or associated companies. In these circumstances, all the companies covered must be listed in an annex to the guarantee.

When this option is exercised, the month-end stockholding of all the premises owned by all the companies and all the movements for which the companies provide security must be included when working out the size of the guarantee.

Multi-site security of premises gives commercial benefits in terms of the overall level of security required, but it carries more risks, as one significant irregularity on the part of any of the companies would result in the loss to the entire group of any reductions granted, it could also mean the cancellation of your entire guarantee.

10.5 Checking the validity of guarantees

It is the dispatching warehousekeeper’s or registered consignor’s responsibility to make sure that the guarantee for the movement is given (read paragraph 10.2).

You should confirm that the guarantee is given by one of these people before you complete the appropriate section of the eAD on EMCS. If you’re not certain that the guarantee details given to you for the movement are valid, you should make enquiries of the owner or transporter to satisfy yourself that the guarantee given is appropriate for that movement.

If you’re not satisfied you should not accept the guarantee.

To check if a guarantee is valid you should contact the HMRC excise helpline and give them the:

principal’s name
amount of duty-suspended on the movement
reference number of the guarantee

They will tell you if the guarantee is valid and will keep a record of your request. If you make a written request, they can make this record available to you. They may not disclose any further information.

You should not release the goods without a valid guarantee recorded on the eAD. If you do release the goods without a valid guarantee or without permission to use that guarantee, then you, as the warehousekeeper or registered consignor, have not complied with your legal responsibilities and may be liable for the duty.

10.6 Review of security levels

If your trading pattern changes and you need to increase or decrease the level of guarantee you should write to the HMRC excise helpline. You must keep a record of checks on your trading pattern.

We’ll also carry out checks to make sure that your level of security is satisfactory and may ask for more financial security as a condition of your approval if:

your trading pattern changes
we’ve identified weaknesses in your system

10.7 Claims against movement guarantees

HMRC will only claim against the guarantee if either you (the person who provided the guarantee) or the person considered to have a joint and several liability has failed to pay the assessment within 45 days.

If the guarantee covers both premises and movements, we’ll still claim against the guarantee, claims will not be restricted to either premises or movements.

If we make a claim against the guarantee, we’ll ask the guarantor for payment.

You should note that:

the ‘evergreen’ facility of the guarantee allows automatic restitution of the original level of security where, after the submission of a claim, neither party exercises the right to withdraw
this will affect any ‘established trader’ discount
the level of your guarantee does not limit the liability of the debt

If, after the claim against the guarantee, the guarantor gives HMRC a 30-day notice of withdrawal from the guarantee you’ll need to submit a new movement guarantee with us.

If we decide to lapse your guarantee we’ll give your guarantor a 30-day notice of withdrawal.

11. Removal to home use by duty payment (release for consumption)

11.1 General information

You can only remove excise goods on payment of duty from your warehouse within the conditions set out in your approval. You must take all the necessary steps to pay the duty accurately and by the due dates. If you do not you may be prosecuted or receive a financial penalty. This could lead to restriction or withdrawal of your warehousekeeper authorisation.

Duty is due when the excise goods are removed to home use from a warehouse or are made available for consumption. Read examples of how to work out excise duty on alcohol and alcoholic beverages removed from an excise warehouse in section 16.

The warehousekeeper must make sure that the duty has been paid or accounted for before removal from the warehouse to home use.

Warehousekeepers may pay duty by cash equivalent or duty deferment.

Operators of motor and heating fuels warehouses should read Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179).

11.1.1 Additional information of payment of excise duty in Northern Ireland (the excise duty off-set mechanism)

If you move excise goods from Great Britain to Northern Ireland you may be required to work out excise duty on arrival in Northern Ireland. You should record any excise duty calculations you make.

Find more information on the excise duty off-set mechanism in section 17.

11.2 Payment documents

The systems, procedures and records to be kept and prepared when removing excise goods to home use will have been agreed at the time when your approval and authorisation was granted. You must follow these procedures without exception.

Before you remove goods to home use you must use the appropriate payment warrant documents. This may be completed manually or online using either our online warrant or XML service.

When payment is made by cash equivalent the warrants are:

Remittance advice for alcohol goods (W5)
Declare excise duty on tobacco goods released from a warehouse (W6)
W50 for the immediate payment of excise duty including Mineral (Hydrocarbon) Oil Duty — contact the HMRC excise helpline to request the form

If you’re approved to defer payment of the excise duty and want to account for the duty using the deferment process, the warrants are:

Deferment advice for alcohol goods (W5D)
Defer excise duty due on tobacco goods released from a warehouse (W6D)
Report excise duty on fuel removed from warehouse (HO10) for the removal of mineral (hydrocarbon) oils

But if you’re approved for a scheduling arrangement you should submit either the W5D or W6D warrant and schedules in accordance with the scheduling agreement (read paragraph 11.5).

Send paper warrants by post to the National Warrant Processing Unit. Each warrant must contain a consecutive reference number (CRN). This number can consist of up to 7 numbers with no other characters or spaces included.

You must not use the same number twice in one month.

If you submit a paper warrant and your consecutive reference number contains more than 7 numbers or is duplicated, it will be rejected and HMRC will return it to you. You’ll then need to amend your consecutive reference number and resubmit the warrant.

You must not remove any goods until you’re certain your warrant has been accepted.

You should:

number your warrants consecutively in an annual series, starting from your first stock accounting period in the year
use a separate, unique numbering sequence for each warehouse you operate

11.3 Online service for duty warrants for alcohol and tobacco goods

You can submit W5 and W6 remittance warrants and W5D and W6D duty deferment warrants online through the Alcohol and Tobacco Warehousing Declarations (ATWD) online service.

This online service:

pre-populates standing data, including warehouse details making it easier to complete the form
provides a drop-down menu of the main registered owners storing goods in your warehouse
automatically works out the amount of duty due when the type of tax is entered as well as sub-totals, the amount of VAT and the grand total
provides a comprehensive search facility including a view of previously submitted warrants
will not allow the same consecutive reference number to be used twice
provides an immediate on screen acknowledgement of receipt
voids postal delays
confirms the approval of deferment warrants (the equivalent of the certified copy 2) and will usually be sent to you within a few minutes rather than having to wait for HMRC to reply by post
provides a 24 hour service

11.3.1 How to submit warrants online

You’ll need to register and enrol for the Alcohol and Tobacco Warehousing Declarations online service.

During the registration process you’ll be given a user ID, asked to choose a password and enter your warehouse ID and postcode.

You should receive an activation code from HMRC within 7 days. You’ll need to use this to activate the service.

After you receive the activation code, you can sign in to:

access the service
submit your warrants electronically

If you have any problems enrolling at the Government Gateway contact the HMRC EMCS online services helpline.

11.3.2 XML channel

The XML Direct Submission Service allows you as a warehousekeeper to send data directly from your computer system to HMRC. It removes the need to complete forms on a web screen, or paper, or to re-key information.

You can submit large numbers of warrants directly from your duty management systems using XML, rather than re-keying the warrants onto an online screen. The XML format for exchanging information between computer systems is a stable and widely adopted technology. XML does not allow us to access or interrogate your computer system. We’ll only be able to receive information that you send us, confirm receipt and pass back messages to you about invalid entries or format errors.

11.4 Payments other than by deferment

If you’re not approved to use deferment arrangements, as a warehousekeeper before removing goods from your warehouse you, or the owner, must:

complete remittance advice: W5 (for alcohol products), W6 (for tobacco products), or W50 (for oils) for the removal
submit the W5, W6 or W50 with your remittance
make sure you keep the copy W5, W6 or W50, certified as duty-paid by the National Warrant Processing Unit, before the goods leave the warehouse

Remittances should be made by either:

Bacs (Bankers Automated Clearing System)
CHAPS (Clearing House Automated Payment System)

We no longer accept any other form of payments.

The following bank details should be used for all payments relating to Alcohol and Tobacco Warehousing Declarations on W5, W6 and mineral (hydrocarbon) oil duty on W50 only:

sort code — 08 32 00
account number — 12000903
account name — HMRC Indirect Misc. Receipts

Use the following details to make a payment if your account is overseas:

account number (IBAN) — GB20 BARC 2005 1730 3364 91
bank identifier code (BIC) — BARCGB22
account name — HMRC Indirect Misc. Receipts

You should use reference National Warrant Processing Unit, followed by your consecutive reference number when making payment.

Due to Bacs payment scheme restrictions, HMRC can no longer collect direct debits over £20 million. If you have a payment to make which is more than £20 million, you should use a different payment method, such as CHAPS.

The National Warrant Processing Unit receives monies 24 hours after payment is made and aims to process the warrant and payment within 48 hours.

11.5 Deferment of excise duty

If you’re a warehousekeeper or owner of excise goods and want to apply for approval to defer daily payment of excise duty and make monthly direct debit payments, you must follow the how to use your duty deferment account guidance.

Before HMRC approves your application, you must take out a guarantee to cover your total monthly liabilities for the particular category of duty or VAT concerned.

If you repeatedly go over your guarantee level or deferment limit, your duty deferment facility will be suspended or withdrawn. If this happens you’ll be asked to make immediate payment. You’ll not be able to remove any goods until the National Warrant Processing Unit has received your payment. You can provide supplementary guarantees to cover liabilities in periods of greater trade.

We issue deferment statements to duty deferment holders. If you’re the duty deferment holder, you should make sure that this statement is correct.

You should contact the Central Deferment Office immediately if:

you find any errors on the deferment statement
any of your customers advise you that they have found errors on their deferment accounts

You must take all the necessary steps to pay duty accurately and by the due dates. If you do not you may:

be prosecuted
receive a financial penalty
receive a restriction or withdrawal of your warehousekeeper authorisation
have your deferment arrangements withdrawn

For all removals from your warehouse under deferred duty arrangements, you must make sure that the National Warrant Processing Unit receives completed W5D and W6D forms for all that day’s removals, no later than the end of the following working day, unless HMRC has agreed scheduling arrangements.

We’ll confirm receipt by returning a stamped copy of the W5D or W6D to you. But the return of copy 2 only means that we have received the W5D or W6D.

You may want to delay removing the goods from your warehouse until you hold evidence that your, or the owner’s deferment account has been debited.

11.5.1 Excise Payment Security System (EPSS)

You may be eligible for authorisation under EPSS to make deferred payments of excise duty without providing a guarantee for your excise duty liabilities. This only relates to removals from warehouse. It does not apply to receipts by a registered consignee who must provide full security.

If you’re making deferred payments of excise duties when excise goods (alcohol, tobacco and mineral oils) are removed to the UK market from an excise warehouse or upon importation, you should complete an application for authorisation to defer payment of excise duties without a guarantee.

Once your application is received it will be considered in line with our authorisation criteria.

You may also be eligible for authorisation to make deferred payments of import VAT without a guarantee under Simplified Import VAT Accounting.

11.5.2 Liability

As a warehousekeeper you’re liable for duty, even if you use an owner’s deferment account. You must complete either the W5D for alcohol products, W6D for tobacco products or HO10 for oils. Only you or the owner of the goods in warehouse may defer duty on duty-paid removals.

You as warehousekeeper will be liable for the duty and a financial penalty if you allow any goods to be removed from your warehouse before the deferment account has been debited with the duty declared on the W5D or W6D declarations.

For details about the submission of the HO10, read Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179).

11.6 Scheduling for alcohol and tobacco goods only

As a warehousekeeper you may use schedules to account for excise duty when payment is by duty deferment. You must write to the National Registration Unit to request your approval to be varied. You must satisfy HMRC that your accounting system is suitable for scheduling. We’ll write to you if we accept your request to operate a scheduling arrangement. You can appeal against our decision if we do not accept your request.

You must submit a schedule of removals to the National Warrant Processing Unit twice a month. There are 2 designated periods. Period 1 runs from the 15th to the end of the calendar month. Period 2 runs from the first of the next calendar month to the 14th of that second month — the end of the normal excise duty deferment period. On the 29th of the second month we debit the total sum from your account.

To account for duty under scheduling arrangements, for each period:

enter on form W5D or W6D the total of all removals for each tax type code
submit the return for the first period to the National Warrant Processing Unit within 4 working days of the end of the period
make sure that the accounting centre receives the return for the second period, by the end of the following working day after the final day of the period

Whenever there is a change in a rate of duty or VAT part way through a period, you must send in 2 separate returns for each return you normally make (W5, W6, W5D or W6D). One must show details of removals made before the change with the duty and VAT worked out at the old rates. The other must show details of removals made after the change, with the duty and VAT worked out at the new rates.

11.7 Accounting for VAT on goods removed from warehouse on payment of duty

11.7.1 General information

VAT may be due when goods are removed from warehouse on payment of duty. But this depends on what happens to the goods while they are in the warehouse.

This section provides information on the VAT position when goods are:

imported from outside the UK and EU
acquired in Northern Ireland under duty suspension from an EU member state
sold whilst in a UK warehouse
manufactured in the UK

11.7.2 When import VAT is due

Import VAT is the VAT due on importing goods. You’ll find more information about this in Tax warehousing (VAT Notice 702/10).

11.7.3 When acquisition VAT is due

Excise goods acquired in Northern Ireland from an EU member state under duty suspension are liable to acquisition VAT.

This will be due when the goods leave the UK warehouse on payment of duty, but only if:

there has been no subsequent supply of the goods while in the Northern Ireland warehouse
the goods have not undergone a process that changes the nature of the product

If acquired goods are sold in a warehouse, or undergo a process that creates a new product (read paragraph 11.7.5), that supply or process ends the liability to acquisition VAT. However supply VAT may be due. The same rules apply if you transfer your own excise goods under duty suspension from an EU member state to Northern Ireland.

Acquisition VAT is worked out on the value of the goods, including excise duty. There is more information about acquisitions in VAT on movements of goods between Northern Ireland and the EU.

Acquisition VAT is declared as an output on the VAT Return and may be treated as input tax on the same VAT Return, subject to the normal VAT rules.

When you, as the warehousekeeper, submit warehouse payment warrants appropriate to these acquisitions, insert the words ‘ACQ VAT’ in the ‘Amount of VAT’ box. You should also complete the ‘Value for VAT’ and ‘Rate of VAT’ boxes.

To support acquisition VAT declarations on the VAT Return, the owner of the goods will need to make sure the audit trail links the VAT Return entry to the warrant removing the goods to home use. It’s up to the warehousekeeper and owner to agree how this is done.

Although not mandatory, one way to provide this information is to produce for every owner, each calendar month, schedules containing the:

community status of the goods
warehousekeeper’s name and address
owner’s name, address and VAT number — must be the same owner when goods enter and leave the warehouse
stock accounts
product description and quantity
date removed from warehouse
warrant number
duty-exclusive value of the goods
amount of excise duty paid or deferred
VAT on duty-inclusive value

You should keep schedules for your own goods and for each owner. You should give one copy of the schedule to each owner before the 12th day of the month after the month of removal and keep one copy with your own records.

If the owner of the goods is not registered for VAT in the UK, you must account for any acquisition VAT on the warehouse removal warrant.

11.7.4 Supply VAT

When goods are sold within warehouses in Great Britain and within warehouses in Northern Ireland, the supply is disregarded for VAT purposes only if the sale is followed by another before the goods leave the warehouse on payment of duty. This means that it is only the final sale in warehouse that is liable to supply VAT, and this is paid by the owner of the goods on removal to home use.

The value for VAT and the amount of VAT to be paid is included in the appropriate sections of the warehouse removal warrants.

For alcohol and tobacco, these are the W5 or W5D and W6 or W6D.

For oils, the excise duty is accounted for on the HO10 with the supply VAT being accounted for on form VAT 908.

UK manufactured goods are only liable to supply VAT if they are sold while in warehouse.

The VAT treatment of supplies of associated services is explained in Tax warehousing (VAT Notice 702/10).

11.7.5 New products through processing

A process which creates a new product:

means that the tariff classification changes
may alter the VAT liability of the goods

Any ‘supply VAT’, ‘import VAT’ or ‘acquisition VAT’ due in Northern Ireland on the original goods is no longer due. The new goods become UK produced goods for VAT purposes.

The following processes change the character of goods and create a new UK product when they are performed in:

an excise warehouse — alcoholic liquids:
- fortifying other fermented products (previously known as made-wine)
- fortifying wine
- mixing beer or wine with other fermented products to produce other fermented products
- producing beverages or foodstuffs of low alcoholic strength qualifying for duty relief
- rectifying and compounding spirits
- ‘rendering’ other fermented products sparkling — that is aerating or carbonating other fermented products
- the maturation and processing of plain spirits until they can legally be defined as whisky
- the blending or marrying of different whiskies
registered premises — beer, wine and cider:
- blending
- mixing including making shandy and low alcohol drinks
- dilution
- pasteurisation
- carbonation
- sterile filtration
- de-alcoholisation
- fortification
- the fermentation and processing of fresh grapes, or the must of fresh grapes, until they can legally be defined as wine
- rendering wine sparkling, including disgorging
- rendering cider sparkling
mineral oil production warehouses:
- synthesis — chemical refineries where hydrocarbon oil is produced as a by-product of the plant process
- oil to oil — oil refineries where crude and other feedstock is processed to produce a range of hydrocarbon products
- operators of motor and heating fuel warehouses should read Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179) for examples of specific processes which constitute refining
registered tobacco premises or a factory — cigarettes include:
- leaf to rag
- rag to cigarette
- leaf to finished product
- leaf to blended and flavoured rag (prior to pressing)
- blended and flavoured rag (prior to pressing) to finished product
- leaf to filler (cigars)
- filler to cigar

11.7.6 Deficiencies in warehoused goods — accounting for VAT

Any deficiencies of warehoused goods are treated as though they have been removed from the warehousing regime. When deficiencies of goods are charged with duty, VAT not already paid on those goods will also be charged.

Any acquisition or supply VAT on goods from an EU member state which has not been accounted for should be accounted for when deficiencies occur.

Deficiencies of home-produced goods are not to be charged with VAT unless the goods have been supplied in warehouse before the loss.

In each case, the VAT may be deducted as input tax, subject to the normal rules.

11.8 Refunds of excise duty

Unless you have overpaid excise duty in error, HMRC will not refund excise duty. But, there are some circumstances where you can claim duty drawback.

You’ll find more information in Excise duty drawback (Excise Notice 207).

12. Dispatching goods in duty suspension

12.1 Overview

Before removing goods from your warehouse to other approved persons or premises in the UK you must make sure that you’re sending the goods to someone who is approved to receive them. Whilst EMCS will validate the consignee’s excise ID and the class of goods they are approved to receive, the system will not verify their name and address.

You should contact the HMRC excise helpline to get confirmation of the consignee’s approval details. If you ask us to confirm if the consignee is approved to receive those goods, we can only reply ‘yes’ or ‘no’. We cannot provide any details.

For EMCS movements, access EMCS and complete a draft eAD. Once the eAD has been validated and the ARC has been allocated and received you may dispatch the goods from your warehouse.

Unless you are dispatching goods from Northern Ireland to the EU, you must provide the person accompanying the goods with a copy of the eAD or a commercial document on which the ARC is stated either in:

paper form
electronic form — read paragraph 2.1

If EMCS is not available to complete and submit the eAD, you should start the movement using fallback procedures (read paragraph 3.2).

For movements outside of EMCS, complete the appropriate accompanying documents to send with the goods.

Make sure that a movement guarantee has been provided. If the movement guarantee is given by the owner of the goods or the transporter, you can contact HMRC excise helpline and ask if the details are valid.

Operators of motor and heating fuels warehouses should refer to Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179) for bulk movements by sea and pipeline.

If you (as the warehousekeeper) are also the owner of the goods and have been paid, or expect to be paid, more than 10,000 euros (or equivalent in other currencies) in cash for a sale or supply of duty-suspended alcohol products, you must complete and send form W7 Notification of cash payments before dispatching the goods. Duty-suspended alcohol products include:

spirits
spirits based beverages
beer
wine
other fermented products
cider

It may be commercial practice for customers to pay cash in 2 or more instalments which individually are less than the 10,000 euros notification threshold but the total sale will be more than this amount. In these circumstances, you must notify HMRC on form W7 when the first cash payment is received.

You should not allow the goods to leave your premises until you’re satisfied that a valid guarantee is in place and recorded on the appropriate movement document.

As a dispatching warehousekeeper it is your responsibility to make sure that all the conditions that apply to any removal from your warehouse are complied with. If you do not, you’ll be liable to pay all duties.

12.1.1 Additional information for removals from Northern Ireland warehouses

Removals from Northern Ireland warehouses can take place to either an approved person or premises in the UK or in an EU member state. You must still follow the rules in this section.

12.1.2 Additional information for Northern Ireland consignors who split movements of energy products on EMCS

If you intend to split consignments of energy products in duty suspension for dispatching to destinations in an EU member state, follow the correct procedure for splitting on EMCS in paragraph 2.4.

12.2 Preparing excise goods for transport

HMRC do not insist that you seal containers used for transporting cased goods, but you may want to do so for security reasons. In this case you should show details of the seals on the eAD.

You are responsible for making sure that the transport you use meets all your business needs and that the transporter complies with HMRC and UK requirements. If you provide the movement guarantee, you may be liable for the duty on any missing goods.

For casks moved by open (unsealed) transport, you must:

dip each cask, measure and record each bung and wet dip
test spirits for strength
hard bung each cask
make sure that you separately identify all casks on dispatch documents with details of respective dips and strengths
advise the HMRC excise helpline if you discover any irregularities or the receiving warehousekeeper tells you about irregularities, for example, evidence of tampering involving goods received

You should be aware that EU requirements will also apply for excise goods being transported between Northern Ireland and an EU member state.

12.3 Removals under groupage contracts

If you want to remove goods under a groupage contract, you must make sure that:

the movement takes place under a single transport contract for the goods
where required, a printed version of the eAD or commercial document containing the ARC, or other movement documents must always accompany the goods to which they relate — these documents can be in an electronic format (read paragraph 2.1)
the journey time stated on the relevant movement documents allows for the groupage process — there can be no storage at the premises where the consolidation takes place
the movement is not unduly delayed by groupage
additional commercial documents cover the movement of the goods from the warehouse to the non-approved premises
the transporter notifies the consignor of any identified losses
if you group duty-suspended and duty-paid goods, you load the duty-paid goods before the duty-suspended goods

12.4 Cancelled movement

A warehousekeeper may cancel a movement for a submitted eAD on EMCS providing the goods have not been dispatched from the warehouse. This will normally occur where the dispatching warehouse or the consignee recognises from a submitted eAD that the delivery order is incorrect or that the order has simply been cancelled, for example for commercial reasons.

If the goods have already been dispatched the cancellation procedure cannot be used and the dispatching warehousekeeper must use the change of destination procedure (read paragraph 12.7).

You may submit a change of destination to return the goods to your own warehouse.

12.5 EMCS alert and rejection messages

Consignees are able to reject an eAD. They may do this because the consignment is not recognised, is materially wrong or there is some other problem that prevents the consignee from receiving the goods. A consignee can send a rejection message on EMCS at any point after the eAD for the consignment has been raised, up until the goods reach their destination.

If you, as consignor, receive a rejection message and the goods have not been dispatched, then you may be able to cancel the eAD. If the goods have already been dispatched, you’ll need to follow the change of destination procedure to bring the goods back to you or to move them to some other approved person or premises.

Consignees are also able to submit alert messages on EMCS. An alert message indicates that the consignee believes that there is a problem with the information on the eAD for a particular consignment, for example, the quantity is not what they expected. As you cannot respond back to an alert message through EMCS, you should discuss any problems with the consignee outside EMCS.

If the consignee chooses to accept the consignment, you do not need to take any further action. If they decide they do not want the consignment, then you may be able to cancel the eAD if the goods have not been dispatched. If the goods have already been dispatched, you’ll need to follow the change of destination procedure in order to bring the goods back to you or to move them to some other approved person or premises.

12.6 Shortages during a duty-suspended movement

Shortages found on receipt of the goods should be reported by the consignee. HMRC will charge duty on shortages unless you can prove that the shortage was due to an accident or natural causes. Liability for the duty during the course of a removal rests with the person who provides the movement guarantee. Any other person who participated in the irregularity and who was aware (or should reasonably have been aware) that it was an irregularity, is jointly and severally liable to pay the duty with the person who provided the movement guarantee.

We may remit the duty providing you:

can prove that the loss is accidental or due to natural causes
follow all the conditions and procedures set out in this notice
have followed other written directions from us

12.7 Change of destination

A consignor can change the destination of a movement within EMCS, either in the course of the movement or following receipt of a refusal or rejection message from the consignee through EMCS. The warehousekeeper must access EMCS and amend the appropriate destination fields on the eAD which includes selecting a new place of delivery and, if appropriate, new consignee for delivery.

This can be the warehousekeeper themselves if the goods are to be returned to the original dispatching warehouse (read section 5), in which case a report of receipt must still be submitted.

A destination for the movement of goods starting in Great Britain may only be amended if the new destination is a tax warehouse in the UK or export.

A destination for the movement of goods starting in Northern Ireland may only be amended if the new destination is a:

tax warehouse in the UK or an EU member state
registered consignee in an EU member state
temporary registered consignee in an EU member state
place from where the goods will leave the UK or EU
place of direct delivery in an EU member state

It is in your interests to advise the transporter to make a note on any accompanying (such as a printed copy of the eAD) or commercial documentation of the:

date and time, you advised them of the change of destination
new place of delivery and new consignee’s details

The original ARC will continue to apply to the consignment, even where there is a change of destination to a new consignee.

If EMCS is not available to complete and submit the change of destination message, (read paragraph 3.3) use the fallback procedures.

12.8 Discharge of a movement

The movement is discharged when you have received a report or certificate of receipt. For discharging movements of goods removed for export outside the UK (and outside the EU if dispatched from Northern Ireland) read section 13.

For EMCS movements, the receiving warehousekeeper must send a report of receipt through EMCS to you within 5 days of receipt of the goods.

Dispatching warehousekeepers must:

make sure that they access EMCS regularly and check that they have received the report of receipt
check the report of receipt for any discrepancies
record the discharge of the movement in their records and complete the appropriate section of the W1 return

If you have not received a report of receipt for an EMCS movement, or a manual certificate of receipt for a movement under simplified procedures within 5 days after the expected delivery date, you must inform HMRC in writing.

For alcohol and tobacco products, HMRC will accept notification of undischarged movements on your monthly W1 returns.

If goods are dispatched from Northern Ireland and EMCS is not available in the UK or an EU member state, you may receive a fallback report of receipt from the consignee in the EU member state. This document will be sent through the authorities of the EU member states concerned. When you receive a fallback report of receipt, you should check EMCS to find out if the electronic report of receipt message has already been submitted.

If the report of receipt has:

been submitted on EMCS, the fallback report of receipt can be discarded
not been submitted on EMCS, the consignee will submit this message to discharge the movement when EMCS is available in the EU member state — you should keep the fallback report of receipt until the EMCS report of receipt is received

If EMCS is available in the receiving EU member state, but the consignee is unable to complete the report of receipt, a manual closure may be required. This can only be done by the authorities in the country of dispatch, so you (as the consignor) would need to provide alternative evidence to HMRC that the goods reached their destination (read paragraph 12.9). Upon receipt of satisfactory evidence, HMRC will carry out the manual closure.

Both you and the consignee should receive a message through EMCS confirming that the movement has been manually closed.

12.9 Alternative evidence of discharge of a movement

HMRC accepts that it may not always be possible for a report of receipt to be returned to the warehousekeeper and we may, in exceptional circumstances, allow other evidence to be provided. Other evidence will only be accepted if the warehousekeeper or provider of the movement guarantee can show that they have made every reasonable effort to get the report of receipt from the consignee.

Where every effort has been made, and the report of receipt is not available, we’ll accept the following documents as alternative evidence to discharge the movement:

a receipted copy of the eAD or commercial document which accompanied the goods
for movements between Northern Ireland and an EU member state, an official letter from the fiscal authorities in the consignee’s country confirming that the goods covered by the relevant eAD (with ARC quoted) have been received by the consignee — find contact details for the fiscal authorities in EU member states by searching Customs Office Information on the Europa website
for intra-UK movements alternative commercial evidence

This evidence must be produced to us within 4 months of the start of the movement.

In exceptional circumstances, the consignor may be unable to obtain any of the accepted forms of evidence showing that the goods have arrived at their intended destination. If so, we’ll consider other evidence on a case-by-case basis. But the person who provides the movement guarantee must be able to demonstrate that they have tried to get alternative evidence. This other evidence, as a minimum, must show not only that all the goods were received at the consignee’s premises, but that they were also entered into the receiving warehouse’s duty-suspended stock records.

If no report of receipt is received, we’ll issue an assessment to the person providing the guarantee for the outstanding duty 4 months after the date of dispatch. If necessary, we may ask the guarantor to meet any liability.

You may be entitled to reimbursement of the paid duty if you can subsequently prove that the irregularity occurred outside the UK. In such circumstances you should contact the HMRC excise helpline.

In the case of Northern Ireland you may be entitled to reimbursement of the duty-paid if you can subsequently prove that the irregularity occurred outside the UK, that the duty was due in an EU member state and you have paid any duty due to that member state. In such circumstances you should contact the HMRC excise helpline.

12.10 Irregularities

If you become aware that goods dispatched by you have not arrived at their destination, you must contact the HMRC excise helpline immediately. You must also try to find out what happened to the goods.

Where there’s a serious incident affecting the movement, for example an accident or theft, you should contact the HMRC EMCS helpline immediately. HMRC will raise an event report on EMCS, based on the information you provide. This message will be visible to both consignor and consignee.

For movements between Northern Ireland and an EU member state, when an event report is raised by the authorities in an EU member state there may be documents attached, which you’ll not be able to view on EMCS. In these cases the message you receive will tell you that there is an attachment that has been removed.

You can get a copy of the attachment by contacting the HMRC EMCS helpline.

Where you fulfil your legal responsibilities in respect of goods removed under cover of an eAD and an irregularity occurs during the movement, if you did not provide the movement guarantee and are not responsible for the goods reaching an excise duty point, you’re not liable to pay the duty due.

The person who provided the movement guarantee is responsible for the liability to pay the duty on goods that fail to reach the consignee.

The guarantee may be provided by the:

dispatching warehousekeeper
receiving warehousekeeper (for movements between UK warehouses only)
transporter
owner of the goods — this is the last person who owned the goods in the warehouse

In the case of an irregularity involving goods moving between Northern Ireland and an EU member state the rate of duty which applies will depend upon the EU member state in which the loss occurred, was detected or was deemed to have occurred.

If the consignee retains any excess goods, they take on the duty liability for those goods. They should note the details of excesses on the report of receipt. You should check your stock and make sure that you make any adjustments to your stock records.

13. Exporting excise duty suspended goods from Great Britain and Northern Ireland

13.1 General information

This section deals with the export of excise duty suspended goods from:

Great Britain to countries outside the UK
Northern Ireland to countries outside the UK and EU

It sets out the requirements for anyone involved in the export of excise duty suspended goods, including excise warehousekeepers, registered consignors, owners and transporters of excise goods, and customs agents.

Only an authorised excise warehousekeeper or a registered consignor can dispatch excise duty suspended goods, which are intended for export, to a place from where the goods will leave the territory of the UK or territory of the EU.

Further information on a registered consignor’s responsibilities regarding the importation and immediate export of excise duty suspended goods can be found in section 7.

13.2 Exporting excise duty suspended goods — your responsibilities as the dispatching warehousekeeper or registered consignor

When dispatching excise duty suspended goods for export, you must ensure that:

a valid guarantee is in place to cover the excise duty suspended movement
a valid eAD (or a Fallback Accompanying Document (FAD) if EMCS is unavailable) is in place before the excise goods leave the warehouse premises (unless the goods are being declared under a Customs Supervised Exports (CSE) authorisation — see sub-section 13.4) or before the goods leave their place of import (for registered consignors only)
arrangements are in place for a customs export declaration to be submitted

If the movement guarantee is being provided by someone else (for example, the owner of the goods or the transporter), you need to be satisfied that it is a valid guarantee and that you have written confirmation from the guarantee provider that their guarantee can be used for that movement. Further information about who can provide the guarantee for an excise duty suspended movement can be found in sub-section 10.2.

If you want to confirm whether the guarantee being provided is valid, you should send an email to nvcglasgow@hmrc.gov.uk, providing the name of the guarantee provider and the guarantee reference number.

Once you have successfully submitted your eAD on EMCS, you’ll receive a 21-digit ARC. This ARC must be noted on either a printed or electronic copy of the eAD or any other commercial documentation that accompanies the excise goods.

If EMCS is not available at the time of dispatch, you must follow the fallback procedure until EMCS becomes available, at which point you should retrospectively enter the excise duty suspended movement on EMCS (see section 3).

You must provide the person responsible for submitting the customs export declaration with the ARC (or the Local Reference Number (LRN) for the FAD if the excise duty suspended movement started under fallback).

13.3 Completing the customs export declaration

The exporter (or the agent acting on their behalf) is responsible for completing the customs export declaration.

When excise duty suspended goods are being exported, the following information must be entered when the customs export declaration is made:

a valid customs procedure code in Data Element (DE) 1/10 and DE 1/11 on CDS
the ARC (or the LRN for the FAD if the excise duty suspended movement remains under fallback) in DE 2/3 on CDS (using document code C651 for an eAD or C658 for a FAD)
accurate quantities in DE 6/1 (net weight) and DE 6/2 (supplementary units) on CDS
an accurate commodity code in DE 6/14 on CDS (this should match the commodity code declared on EMCS)

In addition, for indirect exports from Northern Ireland that exit via an EU member state, the office of exit must also be declared in DE 5/12 on CDS.

Further information on the customs export process can be found in the Export goods from the UK: step by step guide.

13.4 Customs Supervised Exports (CSE)

If you are a dispatching warehousekeeper with CSE authorisation, you can export excise goods under your CSE authorisation without having to use EMCS for the excise duty suspended movement from your warehouse premises to the customs office of exit in the UK. This only applies to direct exports from the UK.

If you’re exporting excise duty suspended goods under your CSE authorisation, the goods must be exported in accordance with any conditions contained in your CSE authorisation.

Exports of excise duty suspended goods under CSE are also subject to the following conditions:

a valid guarantee covering the excise duty suspended movement must be recorded in DE 8/2 and DE 8/3 on CDS
the dispatching warehousekeeper must receive a ‘permission to progress’ message on CDS before the goods leave the warehouse
a copy of the customs export declaration must always accompany the goods
the goods remain under the supervision of the dispatching warehouskeeper until they leave the territory of the UK
the dispatching warehousekeeper must keep a record of the customs export declaration and any other commercial documents to demonstrate that the goods physically left the UK

13.5 Exports followed by transit

Where excise duty suspended goods are being exported as well as moving under the customs transit procedure, the following will need to be completed:

an eAD on EMCS (or a FAD if EMCS is unavailable) unless the goods are being exported under a CSE authorisation
a customs export declaration on CDS
a transit declaration on the New Computerised Transit System (NCTS)

The Transit Manual Supplement provides information on the customs transit procedure and should be read in conjunction with this guidance.

The excise duty suspended movement

An eAD must be submitted on EMCS before the excise goods are dispatched from the warehouse premises (unless the goods are being exported under a CSE authorisation) or before the goods leave their place of import.

If EMCS is not available at the time of dispatch, the fallback procedure must be followed until EMCS becomes available, at which point the excise duty suspended movement should be retrospectively entered on EMCS (see section 3).

The customs export declaration

A customs export declaration must be submitted on CDS.

Use of the ‘TRANS’ AI statement is not permitted on the customs export declaration where the export is followed by transit for excise goods.

It’s important that the customs export declaration is departed at the customs office where the goods exit the UK to ensure that the excise duty suspended movement is only closed at this point.

This can be done through either:

a Community System Provider (CSP)
a C1602 form
the Goods Vehicle Movement Service — the customs export declaration reference must be included on the relevant goods movement reference

The transit declaration

A transit declaration can either be submitted on NCTS by an authorised consignor or be lodged at a transit office of dispatch.

The declaration must include the movement reference number for the customs export declaration entered in box 40 on NCTS.

The following sets out the general process for the export of excise duty suspended goods followed by transit:

an eAD is submitted on EMCS (or a FAD is completed if EMCS is unavailable) prior to the excise goods leaving the warehouse premises (unless the goods are being exported under a CSE authorisation) or before the goods leave their place of import
a customs export declaration is presented at the customs office of export (this could be at a port, airport or the dispatching warehouse premises)
a transit declaration is either submitted on NCTS by an authorised consignor or lodged at a transit office of departure
the exporter (or agent acting on their behalf) must submit a departure message on CDS when the excise goods physically leave the UK — this discharges the export procedure and will generate a report of export on EMCS
the excise duty suspended movement is closed once the excise goods physically leave the territory of the UK and a report of export is generated on EMCS
the transit movement is completed when the office of destination discharges the transit procedure

13.6 Change of destination for exports under excise duty suspension

Once excise goods for export have left a UK warehouse premises or place of import under an excise duty suspended arrangement, there are only limited changes of destination that can be made.

For excise duty suspended movements starting in Great Britain, these are:

to another tax warehouse in the UK (including the warehouse of dispatch)
to an alternative place from where the goods will leave the territory of the UK

For excise duty suspended movements starting in Northern Ireland, these are:

to another tax warehouse in the UK or an EU member state (including the warehouse of dispatch)
to a registered consignee in an EU member state
to a temporary registered consignee in an EU member state
to a place of direct delivery in an EU member state
to an alternative place from where the goods will leave the territory of the UK or EU

The dispatching warehousekeeper or registered consignor will need to access EMCS in order to amend the appropriate consignee and/or destination fields on the eAD.

If EMCS is not available, you will need to follow the fallback change of destination procedure (see sub-section 3.3).

It is in your interest to advise the transporter to update their copy of the eAD or commercial document containing the ARC (or the FAD if the movement remains under fallback), with the following:

the new consignee/destination
the date and time you advised them of the change of destination

It’s important to note that the guarantee provided for the original excise duty suspended movement will remain in place and will continue to cover the movement of the goods until they arrive at their new destination.

Change of destination for exports under CSE

For excise duty suspended goods moving under a CSE authorisation, the intended place of export can only be changed to an alternative place of export in the UK.

However, if the export is not going to be completed and the goods are going to remain in the UK, the excise goods must be returned to the same warehouse that they were originally dispatched from (in other words, the goods cannot be sent to any other location).

It is in your interest to advise the transporter to make a note of the change of destination (including the date and time of the change) on the appropriate commercial documentation.

It’s important to note that the guarantee provided for the original excise duty suspended movement will remain in place and will continue to cover the movement of the goods until they arrive at their new destination.

13.7 When an excise duty suspended movement for export ends

An excise duty suspended movement for export ends when the excise duty suspended goods leave the UK, the customs export declaration receives a full departure message, and a report of export is generated on EMCS (unless the goods are exported under a CSE authorisation, in which case the warehousekeeper must hold commercial documentation to demonstrate the goods were exported).

To ensure a report of export is generated on EMCS:

an eAD must have been submitted on EMCS and an ARC generated (this will need to be done even if the excise duty suspended movement started under fallback)
the ARC must have been recorded on the customs export declaration
the customs export declaration must have received the ‘DMSEOG’ departure message confirming the exit of the goods on CDS

If the excise duty suspended movement started under fallback and the LRN for the FAD was recorded on the customs export declaration (in the absence of an ARC), a report of export will not be generated when the movement is subsequently entered on EMCS. In this circumstance, you will need to follow the process set out in sub-section 13.8 in order for the movement to be manually closed on EMCS.

If, for any other reason, you do not receive a report of export on EMCS, you should investigate this further. You should also notify all the relevant parties involved in the export (including the person who provided the movement guarantee) so that they can take any necessary action.

If an excise duty suspended movement from an excise warehouse remains open after a period of 2 months from the date the goods were dispatched, the dispatching warehousekeeper must include the details of that movement on their monthly W1 return as appropriate.

Where an excise duty suspended movement remains open after a period of 4 months from the date the goods were dispatched from the warehouse premises or their place of import, an excise duty point occurs at the time the goods were dispatched and UK excise duty is immediately payable on those goods. The person liable to pay the duty is the person who provided the movement guarantee.

As the dispatching warehousekeeper or registered consignor, you have an important role in monitoring your excise duty suspended movements (followed by export) to ensure they don’t remain open on EMCS. If you regularly have excise duty suspended movements remaining open on EMCS, or you have several open movements on EMCS at any given time, HMRC may consider taking penalty action against you. We may also review your approval if you are unable to demonstrate that you are taking proactive action to address these issues.

13.8 Alternative evidence of export when a report of export has not been generated

In exceptional circumstances, HMRC may accept alternative evidence of export in order to manually close the excise duty suspended movement on EMCS. This evidence will need to be provided to HMRC’s EMCS Helpdesk.

The evidence of export must clearly demonstrate that the excise goods left the UK.

When presenting your alternative evidence of export, we would expect to see:

detail of the ARC relating to the export
the customs export declaration, which has received ‘permission to progress’ status (as a minimum, this should include detail of the EPU, entry number and date, and/or the movement reference number (MRN) for CHIEF exports; or the MRN and acceptance date for CDS exports
any commercial documents that clearly identify the goods being exported (for example, an invoice or packing list)
any commercial transport documents that demonstrate how the goods were transported (for example, the bill of lading, air waybill or CMR) and are certified by the carrier that the goods were loaded and shipped to a destination outside of the UK
any other documents that are signed by the consignee in the other country certifying that the goods were received (for example, an endorsed delivery note, invoice or letter headed note), or a document authenticated by a customs authority certifying that the goods left the territory of the UK (for example, a discharged transit document)

Any evidence sent to the EMCS Helpdesk must be presented in a suitable manner that will allow them to easily validate the information provided. The evidence must also clearly identify the specific excise goods in question (not similar or identical goods) and the information provided must match that shown on EMCS and CDS.

Each case will be considered on its own merit and, if necessary, HMRC will ask for further evidence to be provided in order to be satisfied that the excise goods were exported.

Where the EMCS Helpdesk are satisfied with the alternative evidence provided, they will manually close the open excise duty suspended movement on EMCS.

13.9 Irregularity during a movement of excise duty suspended goods for export

Where an irregularity occurs or is deemed to occur during a movement of excise duty suspended goods for export, the excise duty suspended movement ends and the excise duty is payable at that time. This applies even if a report of export has been generated on EMCS.

If a request is made to manually close an excise duty suspended movement on EMCS but HMRC are not satisfied with the alternative evidence of export provided, the movement will remain open. In this circumstance, an irregularity is deemed to have occurred and excise duty is payable on the goods.

The person liable to pay the excise duty is the person who provided the movement guarantee.

Any other person who participated in the irregularity (and who was aware or should have reasonably been aware that it was an irregularity) is jointly and severally liable to pay the duty along with the person providing the movement guarantee.

HMRC will notify the person liable to pay the excise duty by way of an excise duty assessment and will notify anyone else they consider is jointly and severally liable to pay the duty.

HMRC may also consider taking penalty action against anyone involved with the excise goods. We may also review any existing approvals/authorisations of those involved in the wider supply chain.

Circumstances when the excise duty is not due

If excise goods are lost or destroyed during a movement of excise duty suspended goods for export, the EMCS Helpdesk should be notified. Where HMRC are satisfied that the goods have been irretrievably lost or destroyed (for example, due to an accident, the nature of the goods, or some other unforeseeable event), there is no excise duty point and, as such, excise duty isn’t due on the goods.

Excise goods are not considered irretrievably lost or destroyed if they are stolen during an excise duty suspended movement and, in such cases, the excise duty is still due on those goods. The person liable to pay the duty on the stolen goods is the guarantee provider and anyone else considered to have a joint and several liability.

13.10 Exports from Great Britain to EU which travel through Northern Ireland

A customs export declaration is not required when excise duty suspended goods are moving from Great Britain to Northern Ireland.

However, 2 separate eADs will be needed to cover the entire journey when excise duty suspended goods are moving from Great Britain to the EU through Northern Ireland:

an eAD submitted by the dispatching warehousekeeper to cover the movement of the goods from the warehouse in Great Britain to the place from where they will leave Great Britain (this should be recorded on EMCS as an export: DTC6)
an eAD submitted by a registered consignor to cover the movement of the goods from their place of import in Northern Ireland to their final EU destination

Where possible, the ARC for the first eAD should be quoted in the invoice number field on the second eAD as this will help provide a clear connection between the 2 eADs.

Closure of the first eAD

As there is no requirement to submit a customs export declaration for goods moving from Great Britain to Northern Ireland, a report of export will not be generated on EMCS which means the first eAD will remain open. To enable the eAD for this part of the excise duty suspended movement to be closed on EMCS, alternative evidence of export will need to be provided to the EMCS Helpdesk in order to satisfy them that the excise goods left Great Britain.

In most cases a full copy of the second eAD submitted on EMCS will be enough to satisfy HMRC that the goods left Great Britain. However, if there are any discrepancies between the first and second eADs, further evidence of export will need to be provided to demonstrate that the goods left Great Britain.

Information about the alternative evidence of export required can be found in sub-section 13.8. Any reference to the customs export declaration in sub-section 13.8 can be ignored as this is not required for this type of excise duty suspended movement. However, transport documentation will need to be provided for both legs of the journey if the carrier or transporter has changed for the onward journey from the Northern Ireland place of import to the EU destination.

If the EMCS Helpdesk are satisfied with the alternative evidence of export provided, they will manually close the first eAD on EMCS.

If the EMCS Helpdesk are not satisfied that the goods left Great Britain, the excise duty suspended movement will remain open on EMCS and the guarantee provider is liable to pay the excise duty along with anyone else considered to have a joint and several liability.

Closure of the second eAD

Once the excise goods arrive at their intended destination in the EU member state, the consignee should submit a report of receipt on EMCS to close the second eAD. If a report of receipt is not submitted, the excise duty suspended movement will remain open on EMCS.

In exceptional circumstances, HMRC may accept alternative evidence to demonstrate that the excise goods arrived at their intended destination in the EU member state (see sub-section 12.9). This evidence will need to be provided to the EMCS Helpdesk.

If the EMCS Helpdesk are satisfied with the alternative evidence provided, they will manually close the second eAD on EMCS.

If the EMCS Helpdesk are not satisfied that the excise goods physically arrived at their intended destination in the EU member state, the excise duty suspended movement will remain open on EMCS and the guarantee provider is liable to pay the excise duty along with anyone else considered to have a joint and several liability.

14. Entitled miscellaneous removals

14.1 General information

Unless your approval specifically contains conditions to the contrary, excise goods may be removed without payment of duty for:

supplies to diplomats and visiting forces within the UK
removal of goods as stores
removals to duty-free spirit users
delivery of spirit-based essences
sampling in warehouse
denaturing
destruction
Northern Ireland only — supplies to entitled organisations in an EU member state

Motor and heating fuel warehouse operators should read Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179).

14.2 Supplies to diplomats and visiting forces within the UK

When supplying excise goods to diplomats and visiting forces within the UK, you may only remove the goods from your warehouse free of duty and VAT if you show a completed form C426 (for diplomatic privilege) or form C185 (for visiting forces relief).

The C426 should be signed by the Head of Mission and authorised by the Foreign and Commonwealth Office before it is presented to you. The C185 should be signed by an authorised staff member of the visiting forces. There is no requirement for the C185 to be authorised by the Foreign and Commonwealth Office.

The goods must be consigned and delivered to the entitled mission premises or visiting forces base address as shown on the C426 or C185 and must not be used for commercial purposes.

You should keep copy 1 of the C426 and a photocopy of the C185 for your records and make sure that the accompanying commercial document is completed in accordance with the directions given in this notice, or the movement may be considered to be an irregular departure from the warehouse and excise duty and VAT will be due.

14.2.1 Financial security

Removals from warehouse to mission or visiting forces premises within the UK are duty-free (not duty-suspended) and therefore do not take place under EMCS. But there is still a requirement for a financial security to be in place before the goods leave the warehouse and to remain in place until the goods have been delivered to the entitled mission premises or visiting forces base address as shown on the C426 or C185.

The guarantee may be given by the warehousekeeper of dispatch, transporter or owner of the goods and must cover the amount of duty relieved.

The standard duty-suspended movement guarantee cannot be used unless it has been amended to cover duty-free goods removed from your premises. The guarantee holder should contact the HMRC excise helpline to amend this guarantee if required.

14.2.2 Accompanying documents

As these movements are not considered to be in duty suspension and do not take place under EMCS, you’re required to use a 3-part commercial removal advice note which you must cross-refer to the authorisation (C426 or C185).

Copy 1 is for your records, copy 2 is for the Head of Mission or authorised Officer on the visiting forces base and copy 3 is the certificate of receipt for completion and return to you.

On the removal document you must include the:

name and code number of dispatching warehouse and signature of consignor
warehousekeeper’s document serial number and date of removal
consignee’s name and the official address of the Diplomatic Mission or visiting forces base (this is the only allowed place of delivery), the official Foreign and Commonwealth Office reference number (C426 only) and if the goods are being removed under diplomatic privilege or to visiting forces relief
details of the financial security covering the movement
description of goods and Commodity Code number
stock number and rotation or other identifying marks and numbers

You must also include the quantity of alcohol in litres of product at 20 degrees centigrade to 2 decimal places.

For motor and heating fuels you must also include the:

address of the premises from which the oil is removed
quantity of oil
identifying particulars of the vehicle or other means of transport
statement ’This oil has not borne excise duty’

You must enter the details of all goods on the commercial removal document, and in the appropriate ‘Dip Priv’ box on the excise warehouse stock return (form W1).

You should encourage the Head of the Diplomatic Mission or the designated officer for the visiting force to return the receipted copy 3.

You should contact the HMRC excise helpline if the Head of Diplomatic Mission refuses to return the receipted copy. You must make sure the return of all receipted copies for removals to visiting forces.

14.3 Supplies to HM Ships

HMRC allows HM Ships to receive alcohol free from duty. HMRC treats these deliveries as exports. The point of exportation is the delivery to the ship (Statutory Instrument 1406/1954).

Supplies to HM ships are not considered to be in duty suspension and do not move under EMCS procedures.

You may remove goods from warehouse to fulfil orders from HM Ships by completing commercial documents for the removal of goods from the warehouse.

A financial security (read paragraph 14.2.1) must be in place to cover the movement from the warehouse to the ship.

You’ll need 3 copies, headed to show their purpose and destination.

Copy 1 is for your own warehouse records, copy 2 you send to the base port control officer and copy 3 is for the authorised naval officer’s signed receipt and return to you as warehousekeeper.

On the removal document you must provide the:

name and code number of dispatching warehouse and signature of consignor
warehousekeeper’s document serial number and date of removal
details of the financial security covering the movement
name and address of shipper (if not consignor) of goods
name and category of ship
dock or place of loading
description of goods
stock number and rotation or other identifying marks and numbers
certificate of receipt, to include:
- provision for recording shortages upon receipt
- account debited, for example wardroom, mess or canteen
- signature and rank of commanding or commissioned officer
countersignature and rank of supply or commanding officer

You must also express the quantity of alcohol in litres of product at 20 degrees centigrade to 2 decimal places.

14.4 Removal of goods as stores

Removals from warehouse for shipment as stores on board ships or trains within the UK are not considered to be in duty suspension but supplied under relief and do not move under EMCS procedures.

The ship’s master or train manager must get advanced authorisation from HMRC to load new stores onto the vessel or train.

This authorisation is granted on one of the following:

You should ask for a copy of this form and keep a photocopy for your records.

You may remove goods duty-free from a warehouse to be stores on a vessel or railway vehicle undertaking an entitled journey. You will find the definition of an entitled journey in Loading of excise goods as aircraft, ship and train stores (Excise Notice 69a).

You must complete a commercial document for removal of goods from the warehouse. A financial security (read paragraph 14.2.1) must be in place to cover the movement from the warehouse to the ship.

On the document you must include the:

shipper’s own reference or order number
name, address and code number of the warehouse
shipping marks and numbers
number and description of packages including the number of bottles per case
stock number and description of the goods
quantity of each item and total quantity removed (in litres or litres of alcohol, to 2 decimal places, for alcohol goods)
commodity code number
customs status and duty category of the goods
date of removal from warehouse
details of the financial security covering the movement
name and destination of the vessel or train
name and address of the agent at port or station of shipment

You’ll need 4 copies headed to show their purpose and destination:

copy 1 is for delivery to customs at the port (if required) where the vessel is before you place any goods on board
copy 2 is for the master’s or manager’s signed receipt
copy 3 is for the ship or train to keep for customs purposes
copy 4 is for your warehouse records

For information on removal of goods as aircraft stores, read Excise Notice 197b: excise goods — aircraft store floors.

14.5 Removals to duty-free spirit users

Movements to duty-free spirits (read paragraph 14.2.1) users are not considered to be in duty suspension as they are relieved from duty and do not move under EMCS procedures.

If duty free spirits move from an excise warehouse to a DFS user, the spirit must still be covered by a movement guarantee. The guarantee used must cover duty free movements not just one that covers duty suspension only. The level of guarantee needed is identical to the levels for duty suspension movements.

For more information on these levels, read paragraph 10.2.

Before allowing any removals, you must get a copy of the relevant duty-free user’s statement. You’ll find more information about this in Notice 47 duty free spirits: use in manufacture or for medical or scientific purposes.

You must:

keep a photocopy of each denaturer’s licence, or the relevant duty-free user’s statement
insert details of all removals on the appropriate schedule for the type of goods and stock accounting period
take the account correctly and write the goods out of the stock account
monitor the return of certificates of receipt and retain them in your records
send timely reminders for outstanding certificates of receipt and notify HMRC promptly if difficulties arise
put the following information on the delivery document:
- name and code number of the dispatching warehouse
- warehousekeeper’s document serial number and date
- name and address of consignee and if removed for denaturing, manufacture, medical or scientific research or teaching
- description of spirits
- stock number and rotation or other identifying marks and numbers
- details of the financial security covering the movement
- numbers and description of packages including the number of bottles per case
- the quantity of each item and total quantity removed in litres or litres of alcohol, to 2 decimal places, for alcohol goods
- strength and obscuration, if any
- description of transporting vehicle or vehicles
- identifying numbers and types of seals
- name, address and VAT registration number of the proprietor and, in the case of UK-produced goods, if there has been a supply in warehouse
- provision for certificates of receipt

Details must also include information about the customs status of the goods.

You must refuse delivery if you do not have a photocopy of the duty free spirit user’s approval or the order does not contain the statement referred to in Duty free spirits — use in manufacture or for medical or scientific purposes (Excise Notice 47).

14.6 Delivery of spirit-based essences

Spirit-based flavourings and essences classified under CN code 3302, such as flavourings and essences for soft drinks, are exempt from excise duty.

You’ll find more information about this in Excise Notice 41: alcoholic ingredients relief.

14.7 Sampling in warehouse

Duty-free samples may be taken if you intend to use them for analysis or scientific research purposes.

Motor and heating fuel warehouse operators should refer to Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179).

You must take duty-paid trade samples if you intend to use them for commercial or promotional purposes. You must remove them from warehouse as a normal delivery to home use. You must account for duty and VAT including Customs Duty, if appropriate.

You should keep a full audit trail showing the collection, storage, use and disposal of all duty-free samples. When you send samples on which excise duty has not been paid to recipients in other countries, you must normally use EMCS procedures for the movement from the warehouse to the point of exit from the UK.

The warehousekeeper, or the owner, may examine goods in warehouse. You may draw small quantities from cask or VAT for ‘nosing’, so long as you return the samples to their original containers without delay.

The warehousekeeper or the owner may draw and remove samples from warehouse at any time without paying duty for:

quality control checks, including scientific and organoleptic analysis (this does not cover ‘wine-tasting’ where the wine is actually consumed)
reference purposes
scientific research or testing

These are not for consumption. You must pay duty on any samples which are used for tasting purposes, if the sample is actually consumed.

You must record all removals for sampling purposes in your stock account.

Warehousekeeper and owner records must include:

an identification of each sample
the size and strength of the sample
the date and reason for drawing
the place where you hold the used sample for reference

You must label duty-free samples. The label must have details which we can cross-check to your records. The size of each sample must be the smallest needed for the particular use. We cannot, for example, accept lack of containers of a suitable size as a reason for drawing samples which are larger than necessary.

Environmental health officers or any other recognised official body may take samples. The recognised official must give you assurance that they will ultimately destroy the goods.

Owners, or persons they authorise must submit to HMRC through the warehousekeeper a signed declaration and assurance as follows:

‘I declare that any samples taken of goods for which I am the owner will be no more than required for the approved purpose. I undertake that so long as duty has not been paid or accounted for on the samples they will not be used for any other purpose or sold. I further undertake that any unused sample or part of a sample taken will be returned to the warehouse or destroyed or I will pay the duty thereon.’

If you take duty-free samples for eligible purposes and use them at your own premises, there is no VAT liability. You must analyse the goods to destruction or dispose of them using an acceptable method. Samples removed for eligible purposes and supplied to customers free of charge have no VAT liability.

HMRC normally allow only one sample of a suitable size for a particular use. But, if you have a real and justifiable need for 2 or more identical samples, for example, for use at 2 or more places, you should make a separate note of the facts in your records. You must take any other samples on a duty-paid basis.

You may return to stock or destroy any samples or remnants which have not left the warehouse. If you remove samples from warehouse, you must make sure that you either return the samples to the warehouse or destroy them. If you’re destroying samples held at a remote site, for example a laboratory, you must contact the HMRC excise helpline giving notice.

You must pay duty on samples which you have not disposed of properly.

14.8 Denaturing

Warehoused alcohol and tobacco may be denatured in warehouse without having to pay the duty, providing that the potential duty is more than the value of the goods and you follow the correct procedures.

If someone else carries out the denaturing on your behalf, you remain responsible for making sure that you comply with all HMRC procedures.

You may not denature spirits or goods which are liable to Customs Duty if the duty has not been paid.

HMRC may grant permission if the goods are:

damaged
surplus after operations
refuse
in a non-marketable condition

For tobacco goods advise the HMRC excise helpline of your proposals and get agreement before carrying out the denaturing. In particular, you’ll have to make sure that any fiscal mark is obliterated or destroyed.

You should be aware that any notice to HMRC about a denaturing, or our agreement to a proposed method of denaturing, does not lessen your responsibilities under anti-pollution laws.

You must give us at least 2-days’ notice (excluding Saturdays, Sundays and bank holidays) if you want to denature the goods in your approved premises or 5-days’ notice (excluding Saturdays, Sundays and bank holidays) if you want to denature the goods at premises other than your approved premises.

You must tell us:

why you want to denature the goods
the description and quantity of the goods
the potential amount of duty involved
the date, time and place of the proposed denaturing
the method of denaturing
the purpose to which you’ll put the denatured product

If we decide that your proposed method of denaturing is not satisfactory, we’ll tell you in writing. If you decide to continue with the denaturing by another method which is acceptable to us, you must give a further 2-days’ notice if you want to denature goods in your approved premises or 5-days’ notice if you want to denature the goods outside your approved premises.

Duty-paid goods can be denatured, but, if you want to claim drawback, you must follow the guidance in Excise duty drawback (Excise Notice 207).

14.9 Destructions

Provided that you follow the correct procedures, warehoused alcohol and tobacco goods may be destroyed without having to pay the duty.

Motor and heating fuel warehouse operators should read Motor and heating fuels general information and accounting for excise duty and VAT (Excise Notice 179).

If someone else carries out the destruction on your behalf, you remain responsible for making sure that all our procedures are complied with.

We may grant permission if the:

goods are damaged
goods are surplus after operations
goods are refuse
goods are in a non-marketable condition
potential duty is more than the value of the goods

You must give HMRC at least:

a 2-day notice (excluding Saturdays, Sundays and bank holidays) if you want to destroy goods in your approved premises
a 5-day notice (excluding Saturdays, Sundays and bank holidays) if you want to destroy the goods outside your approved premises

Notifications should be sent by email to: niualcohol@hmrc.gov.uk.

You should be aware that any notice to HMRC about destruction does not lessen your responsibilities under anti-pollution laws.

You must tell us:

why you want to destroy the goods
the description and quantity of the goods
the potential amount of duty involved
the date, time and place of the proposed destruction
the method of destruction

If HMRC decides that the proposed method of destruction is not satisfactory we’ll tell you in writing. If you decide to continue with the destruction by another method which is acceptable to HMRC, you must give us a further:

2-day notice if you want to destroy goods in your approved premises
5-day notice if you want to destroy the goods outside your approved premises

As all local authority approved destruction sites will not be authorised to receive duty-suspended goods, HMRC’s policy for off-warehouse destructions is to treat the destruction site as a temporary extension to the warehouse approved area. This has the effect of the destruction being deemed to take place in warehouse, therefore neither EMCS nor a movement guarantee are required.

We require you as the warehousekeeper, through your commercial and local authority site records, to provide evidence that the goods have been destroyed in accordance with the notice given. Any discrepancies will be treated as a loss in warehouse.

14.10 Supplies to entitled organisations in EU member states

Northern Ireland warehousekeepers and registered consignors are able to supply goods in duty suspension to entitled international organisations, embassies and forces in an EU member state.

A trader who supplies goods to entitled organisations must:

get an order together with a fully completed exemption certificate (in duplicate) (in accordance with article 5 of Regulation EC 31/96)
keep the original exemption certificate for your warehouse records complete an eAD within EMCS under the normal procedures for an intra-EU movement of duty-suspended excise goods
make sure the movement is covered by a valid guarantee
attach a copy of the exemption certificate to the printed version of the eAD or the commercial document clearly stating the ARC
make sure a report of receipt is received from the EU member state of destination

Each EU member state decides if individuals within organisations may order goods, as well as the organisations themselves. If you have any doubt about the authenticity of the organisation, the eligibility of the individual or the exemption certificate, you should contact the HMRC excise helpline.

15. 18 month auto-closures

15.1 Closure of EMCS movements that remain open after 18 months

EMCS movements which have been dispatched in the UK and which remain undischarged for 18 months will be closed when they reach 18 months old. An IE881 manual closure notification message will be sent to the consignor. The consignee will also get a closure notification if the movement is internal within Great Britain, or from Northern Ireland to the EU.

The process for the automatic closure of open movements that are older than 18 months does not affect the legal requirements within regulation 81 of The Excise Goods (Holding, Movement and Duty Point) Regulations 2010 which specify that a deemed irregularity has occurred should goods have not been evidenced as having arrived at their intended destination within 4 months following the start of the movement.

Where an automatic closure has occurred, you must still hold suitable alternative evidence that the goods arrived at their destination or that any liability was properly discharged. Where this information is not held, HMRC may issue an excise duty assessment.

16. Working out excise duty

16.1 How to work out the excise duty due on alcohol and alcoholic products removed from an excise warehouse

The way in which excise duty is calculated on alcoholic products will change from 1 August 2023. This means you will be required to calculate duty based on litres of pure alcohol for all alcoholic products. For more information on calculating alcohol duty after 1 August 2023 (including worked examples) please refer to the Alcohol Duty guidance.

Unless HMRC has permitted the use of an alternative method that does not disadvantage the revenue, you must work out each constituent stage of the calculation process to a minimum of 4 decimal places.

To complete the remittance advice W5 or W5D, truncate the quantity of alcohol established at the end of the calculation process to 2 decimal places.

You should work out the amount of duty due to 2 decimal places.

To work out the amount of duty due you can use either the:

16.2 How to work out the excise duty due on home use removals under scheduling arrangements

When you account for several removals of goods of the same tax type on a twice monthly schedule, you should work out the quantity of alcohol on each to 4 decimal places, total the individual volumes and truncate the sum to 2 decimal places before applying the duty rate.

For example, if you were to remove the following quantities of vodka (based on this calculation 6 × 70cl × 37.5% alcohol by volume (ABV) = 1.575 litres of pure alcohol per case) to home use, you would pay duty on 3,476.02 litres of pure alcohol:

Date of removal	Number of cases	Total litres of pure alcohol
1 June	71	111.825
2 June	159	250.425
4 June	1,200	1,890.00
9 June	522	822.15
11 June	70	110.25
12 June	185	291.375

Total (in litres of pure alcohol) volume = 3,476.025 litres of pure alcohol, truncated to 3,476.02.

17. Northern Ireland arrangements

The following section explains specific arrangements for the holding and movement of excise goods into Northern Ireland from Great Britain and between Northern Ireland and other EU member states.

These arrangements are in place as a result of the Northern Ireland Protocol to the Withdrawal Agreement under which Northern Ireland maintains alignment with certain EU excise processes and rules.

17.1 Northern Ireland authorisations

The following authorisations are available only to Northern Ireland traders:

registered consignees
temporary registered consignees
certified consignors
temporary certified consignors
certified consignees
temporary certified consignees
tax representatives

For more information on duty suspended excise approvals and authorisations read Registration and approval of excise goods held in duty suspension (Excise Notice 196). For more information on approvals needed to send or receive released for consumption (excise duty paid) goods read Commercial importers, certified traders and tax representatives — EU trade in duty paid excise goods (Excise Notice 204b).

17.2 Duty-suspended movements between Northern Ireland and EU member states

Excise goods can continue to move between Northern Ireland and EU member states (including through Great Britain) in duty suspension using EMCS with an ‘XI’ excise identifier.

Northern Ireland authorised persons are able to create the following movement types:

to a tax warehouse in the UK or an EU member state (DTC1)
a registered consignee based in Northern Ireland or an EU member state (DTC2)
a temporary registered consignee based in Northern Ireland or an EU member state (DTC3)
a place of direct delivery in an EU member state (DTC4)
an exempt consignee as defined by the Horizontal Excise Directive (DTC5)
a place of export from the UK or an EU member state (DTC6)
an unknown destination (for movements of energy products by sea or inland waterways where the consignee is definitely not known at the time of dispatch) (DTC7)

17.3 Duty-suspended movements between Great Britain and Northern Ireland

Excise goods can continue to move between Great Britain and Northern Ireland in duty suspension under the cover of a single EMCS entry (DTC1).

This single EMCS entry will cover 2 separate duty-suspended movements. The first movement takes place in Great Britain and the second covers the leg of the journey that takes place in Northern Ireland.

The single EMCS entry should record the origin of the movement as the place from which the goods were first dispatched to commence the first leg, and the destination of the journey as the place that the goods are ultimately received to end the second leg.

17.4 Duty paid movements between Northern Ireland and EU member states

Since 13 February 2023, movements of duty paid excise goods between Northern Ireland and the EU, and from one business to another, have also been required to move under cover of EMCS. Such movements must be dispatched by a certified consignor and consigned to a certified consignee. This means that both the consignor and consignee need to be approved by their relevant country’s authorities before the movement can take place.

Further information on the movement requirements can be found in Commercial importers, certified traders and tax representatives — EU trade in duty paid excise goods (Excise Notice 204b).

17.5 Distance selling and tax representatives

Distance selling takes place from duty-paid stock and involves the sale of excise goods in Northern Ireland to a private individual in an EU member state, or from one EU member state to a private individual in a different EU member state or Northern Ireland.

As the vendor you’re responsible, directly or indirectly, for delivery of the goods.

Distance selling includes:

internet and telephone sales
sales by mail order
transport by couriers or parcel companies

As the vendor, you’re liable to pay the excise duty of the EU member state of destination at the time of delivery. This duty must be guaranteed to the satisfaction of the fiscal authority of destination before you dispatch the goods.

You may be required by the EU member state of destination to appoint a tax representative in the EU member state of destination, to provide the guarantee and pay the duty on your behalf.

In the context of distance selling, the tax representative:

acts on behalf of the vendor located in an EU member state
assumes the legal responsibility to account for and pay the full amount of excise duty and VAT due on goods sent by the vendor

Tax representatives must be authorised by the vendor and approved by the fiscal authority of the EU member state of destination.

There is no requirement for any official documents to accompany goods moving under distance selling arrangements. But, it is advisable that commercial documents accompany the consignment showing details of the tax representative in the EU member state of destination who is to account for the duty.

If you want to find out about distance sales and the requirements for tax representatives in EU member states, you should contact the relevant fiscal authority. The relevant embassy or consulate in the UK may be able to provide more details. You may find it helpful to quote Council Directive 2020/262 article 44.

17.6 The excise duty offset mechanism

This paragraph 17.6 contains requirements that have force of law and is made under regulations 93 and 94 of the Excise Duties (Northern Ireland Miscellaneous Modifications and Amendments) (EU Exit) Regulations 2020 and regulations 4, 5 and 6 of the Excise Duties (Northern Ireland etc. Miscellaneous Modifications and Amendments) (EU Exit) Regulations 2022.

An excise duty charge arises when goods enter Northern Ireland from Great Britain or the Isle of Man, even where those goods are already UK excise duty-paid, or where corresponding duty has been paid in the Isle of Man.

To avoid paying excise duty twice and the administrative burden of reimbursement claims, the duty offset mechanism credits the amount of excise duty already paid on the goods in Great Britain or the Isle of Man against the liability that arises on entry to Northern Ireland when there is a duty point in Northern Ireland.

To account for the excise duty offset mechanism you must first work out the amount of excise duty due when the goods arrive in Northern Ireland. You can find more information about how to work out excise duty in section 16.

To complete an offset calculation you must subtract the amount of duty already paid on those goods from the duty that is due when the goods arrive in Northern Ireland. You can find more information on making offset calculations in paragraph 17.6.1.

In most cases we expect there will be no additional amount to pay after the offset has been applied.

If the duty already paid on goods removed to Northern Ireland is less than the duty chargeable on entry to Northern Ireland, you will need to account for and pay the difference. This is referred to in this guidance as ‘additional excise duty’.

If the duty already paid on the goods is more than the duty chargeable on entry to Northern Ireland, there is no ability to reclaim any difference.

You can find more information on what to do after completing an offset calculation in paragraph 17.6.2.

You must also make sure that you record your offset calculations and any additional excise duty payment you make and maintain appropriate records that evidence these calculations. You can find more information on offset record keeping requirements in paragraph 17.6.8.

17.6.1 Making offset calculations

To make an offset calculation, you can either use the standard method or the simplified method.

The calculation method you will use will depend on your specific circumstances.

If you are, or could reasonably be expected to be, aware of the amount of UK or Isle of Man duty originally paid on goods you remove to Northern Ireland, or are able to obtain such information, you must make your offset calculation using the standard method from information you hold in your records.

If you are unable to use the standard method of calculation, you may, use the simplified method to complete your offset calculation only where HMRC can be satisfied that:

excise duty has already been paid on goods removed to Northern Ireland prior to departure from Great Britain or the Isle of Man
no one liable for duty on entry to Northern Ireland is, or could reasonably be expected to be, aware of the rate at which duty has already been paid or able to obtain such information

The standard method

The standard method requires you to work out the amount of excise duty due in Northern Ireland, and then subtract the amount of UK or Isle of Man duty already paid on the goods.

The result of that calculation is the amount of excise duty you will need to account for when the goods enter Northern Ireland.

The simplified method

The simplified method means you work out the amount of duty already paid on the goods using the rate of UK excise duty in force one calendar month prior to their removal to Northern Ireland.

You subtract this amount from the duty charged on entry to Northern Ireland to complete your offset calculation. The result of that calculation is the amount of excise duty you will need to account for when the goods enter Northern Ireland.

This means that if your goods enter Northern Ireland within one calendar month of an increase in UK excise duty rates (inclusive of the day of the increase) and you use the simplified method, it will result in additional excise duty to pay.

For example, if the rate of UK excise duty on your goods increased on 15 July, and your goods are removed to Northern Ireland between that date and 15 August, you will use the duty rate in force one calendar month before their removal to Northern Ireland to work out how much duty has already been paid on the goods. You then subtract this amount from the amount of duty chargeable on entry to Northern Ireland, and because the rate has increased, there will be a difference that you will need to account for.

After one calendar month has passed following a change in the rate of UK excise duty, (for example if the rate changed on 15 July but your goods are removed to Northern Ireland on 16 August) the rate you will use to determine how much duty was originally paid will be the same as the current rate, and there will be no additional excise duty to pay.

17.6.2 What to do after completing an offset calculation

Where there is no additional excise duty to pay

Where your offset calculation results in no differential (because the 2 amounts are the same) and there is no additional amount to pay you should submit your import declaration in the normal manner, and, if you are a revenue trader, record the offset calculation in your revenue trader records.

Where there is additional excise duty to pay

In the event your offset calculation results in an additional amount of excise duty to pay (for example due to a Budget rate change) you should submit your import declaration in the normal manner and will also need to account for and pay any additional excise duty. To do this you must either:

submit a return at the end of the appropriate reporting period — this means you do not need to make payments using the import declaration each time you move goods and can submit a single return covering all payments owed over a set period (read paragraph 17.6.5)
immediately account for additional duty via the Import Declaration — you can immediately account for and pay additional excise duty on the import declaration (read paragraph 17.6.7)

There are currently temporary arrangements in place for excise goods moved to Northern Ireland by post and parcel which mean you can elect to delay payment of additional excise duty until the end of the temporary arrangements. Alternatively, you can choose to account for and pay any additional duty due on goods moved by post and parcel using periodic reporting. Find more information about moving excise goods from Great Britain to Northern Ireland by parcel.

You must also record the offset calculation in addition to recording the additional excise duty payment you have made in your records and additional requirements apply if you are a revenue trader, (read paragraph 17.6.8 for more information about record keeping requirements).

Where the duty on entry to Northern Ireland is less than the duty already paid in Great Britain or Northern Ireland

Where the amount of duty already paid in Great Britain or the Isle of Man is more than the amount of duty charged on entry to Northern Ireland, you should submit your import declaration in the normal manner and, if you are a revenue trader, record the offset calculation in your revenue trader records. There is no ability to claim a refund of the difference. This is a revenue protection measure.

17.6.3 Periodic reporting of additional excise duty

You can account for and pay additional excise duty due on goods moved from Great Britain or the Isle of Man to Northern Ireland by using periodic reporting.

If you choose not to immediately account for additional excise duty using the import declaration (read paragraph 17.6.7 for more information on immediate accounting of additional excise duty), you can submit a return to HMRC using the form for paying additional excise duty for goods moving to Northern Ireland. You should use this to account for and pay all payments of additional excise duty you owe on goods you moved over a specified timeframe (known as a reporting period).

These reporting periods mean you do not need to submit individual payments of additional excise duty each time you move goods to Northern Ireland and can instead submit one return and payment to account for all additional excise duty owed on goods to which the offset has been applied during a reporting period.

HMRC operate 2 types of periodic reports you can use to account for any additional excise duty on goods you move to Northern Ireland:

a rate change reporting period (read paragraph 17.6.4 for more information)
regular reporting periods (read paragraph 17.6.5 for more information)

The type of reporting period you use will depend on when the goods arrive in Northern Ireland and which calculation method you use.

You do not need to submit a periodic return if there is no additional excise duty to pay on goods you move during a reporting period.

You can find more information on how to use to submit a return of additional excise duty in paragraph 17.6.6.

17.6.4 Rate change reporting period

When the UK excise duty rate changes, a one calendar month reporting period will open specifically for traders who either:

do not normally complete a regular return (read paragraph 17.6.7 for more information)
use the simplified offset calculation method for goods moving within one calendar month of a rate change

The rate change reporting period will last for one calendar month from (and including) the date of the rate change and prevents the need for you to make multiple individual payments of additional excise duty each time you move goods to Northern Ireland.

All additional excise duty due on movements you make during this period must be accounted for using the form for paying additional excise duty for goods moving to Northern Ireland. This must be returned to HMRC and all additional excise duty paid by no later than 2 calendar months from the date of the rate change.

For example, if the rate of UK excise duty changed on 15 July, a reporting period for one calendar month will open. If you are using the rate change reporting simplified calculation, all movements you make during this period will result in an additional amount of duty to pay. You must account for these on your return and this must be returned to HMRC with payment by no later than 14 September.

At the end of the one calendar month period following a rate change, any offset calculation you make that relies on the simplified method will not result in an additional payment of duty until the next time the rate changes, and this means you do not need to submit a return.

If you move goods outside of the one calendar month rate change reporting period, and your standard offset calculation results in an additional amount of duty to pay, you will need to submit a return following the regular reporting period rules (read paragraph 17.6.5 for more information) or immediately account for and pay using a customs declaration (read paragraph 17.6.7 for more information).

17.6.5 Regular reporting periods

If you need to pay additional excise duty on goods moved outside of the one calendar month period following a rate change then regular reporting periods provide a mechanism for you to account for all additional excise duty on goods you move and avoid the need for you to individually account for and pay additional excise duty each time you move goods to Northern Ireland.

There are 6 regular reporting periods for additional excise duty. Reporting Periods begin on 1 January and last until the end of the next calendar month, at which point a new reporting period begins.

You must submit your return for that reporting period and pay any additional excise duty you owe by no later than 2 calendar months following the end of the reporting period.

Reporting period	Reporting period start date	Reporting period end date (inclusive)	Return and payment returned by
1	1 January	28 February (where there is a leap year, the end of the reporting period will be 29 February)	30 April
2	1 March	30 April	30 June
3	1 May	30 June	31 August
4	1 July	31 August	31 October
5	1 September	31 October	31 December
6	1 November	31 December	28 February (where there is a leap year, the payment return deadline will be 29 February)

For example, any additional excise duty owed on all goods entering Northern Ireland between 1 April and 30 June must be accounted for on your return. This must be submitted to HMRC, along with payment, by no later than 31 August.

You do not need to include on any return the details of any movements that do not result in additional duty.

17.6.6 Submitting a return to pay additional excise duty

To submit a return of additional excise duty to HMRC, you must use the form for paying additional excise duty for goods moving to Northern Ireland. You should account for all additional excise duty owed on goods moved within the relevant reporting period.

You do not need to account for:

goods you moved during a reporting period where there is no additional excise duty to pay
additional duty you have accounted for immediately on entry to Northern Ireland using an import declaration

You must maintain appropriate records supporting the duty payments you make. Read paragraph 17.6.8 for information about record keeping requirements.

17.6.7 Using customs declarations to immediately account for additional excise duty

Where you are required to submit an import declaration for goods entering Northern Ireland instead of using periodic reporting you can immediately account for and pay any additional excise duty through the declaration.

To do this you must complete your offset calculation before the goods arrive in Northern Ireland and account for and pay any additional excise duty you owe on the import declaration.

When submitting your import declaration in the Customs Declaration Service you must use override code ‘OVR01’ in box DE2/2 of the declaration and enter the amount of duty that you are liable to pay, this amount will be the difference between any UK or Isle of Man excise duty already paid and what you owe in Northern Ireland.

17.6.8 Offset mechanism record keeping requirements

When sending excise goods from Great Britain or the Isle of Man to Northern Ireland you are required to maintain appropriate records enabling you to evidence:

all offset calculations you make, which must clearly show:
- to which goods a specific offset calculation applies
- the amount of UK or Isle of Man duty already paid
- the amount of duty charged on entry to Northern Ireland
- the result of that calculation
the method of calculation used (such as the standard or simplified method)
all goods on which you were liable for additional excise duty, and the date that liability arose
the date and method by which you made payment of any additional excise duty you owe

If using the simplified method of calculation, your records must also evidence that you are entitled to use this method of calculation when making offset calculations on goods you remove to Northern Ireland.

HMRC may, from time to time, ask for these records for the purpose of conducting compliance checks. Records related to offset calculations must be kept for a period of 6 years from the date of the goods arrival in Northern Ireland.

You shall receive a penalty and your goods be liable to forfeiture if you cannot, upon request, provide HMRC with evidence supporting your offset calculations or any amount of additional excise duty that you owe on goods you move from Great Britain or the Isle of Man to Northern Ireland.

Revenue trader requirements

If you are a revenue trader, in addition to all other record keeping requirements set out in Excise Notice 206 you must record and maintain in your trader records all of the information set out in paragraph 17.6.8.

This includes a requirement to make an entry into your excise duty account demonstrating all additional excise duty payments you make.

18. The Law

You’ll find the primary legal provisions applicable to the contents of this notice in the:

Finance Act (No. 2) 2023
Customs and Excise Management Act 1979 (CEMA)
Hydrocarbon Oil Duties Act 1979 (HODA)
Rehabilitation of Offenders Act 1974 (ROA)
Tobacco Products Duty Act 1979 (TPDA)
Value Added Tax Act 1994 (VATA)

You’ll find detailed requirements in:

The Alcoholic Products (Excise Duty) Regulations 2023
The Beer Regulations 1993 (SI 1993/1228) (The Beer Regs)
The Channel Tunnel (Alcoholic Liquor and Tobacco Products) Order 2003 (SI 2003/2758) (CTO)
The Cider and Perry Regulations 1989 (SI 1989/1355) (C&P)
The Denatured Alcohol Regulations 2005 (SI 2005/1524)
The Excise Duties (Deferred Payment) Regulations 1992 (SI 1992/3152) (EDDPR)
The Excise Duties (Goods Imported for Testing, etc.) Relief Order 1991 (SI 1991/2089) ( Testing Relief Order)
The Excise Goods (Drawback) Regulations 1995 (SI 1995/1046) (EGDR)
The Excise Goods (Holding, Movement and Duty Point) Regulations 2010 (SI 2010/593) (HMDP)
The Excise Warehousing (Energy Products) Regulations 2004 (SI 2004/2064)
The Excise Warehousing (Etc.) Regulations 1988 (SI 1988/809) (EWER)
The Revenue Traders (Accounts and Records) Regulations 1992 (SI 1992/3150) (RTR)
Spirits (Rectifying, Compounding and Drawback) Regulations 1988 (SI 1988/1760) (SRCD)
The Spirits Regulations 1991 (SI 1991/2564) (The Spirits Regs)
The Value Added Tax Regulations 1995 (SI 1995/2518) (VATR)
The Warehousekeepers and Owners of Warehoused Goods Regulations 1999 (SI 1999/1278) (WOWGR)
The Wine and Made-Wine Regulations 1989 (SI 1989/1356) (W&WM)

Additional legal provisions applying to Northern Ireland

Excise Duties (Northern Ireland Miscellaneous Modifications and Amendments) (EU Exit) Regulations 2020

You’ll find the conditions which cover movements of excisable goods to and from Northern Ireland and EU member states in Council Directive 2020/262 OJ L58, 27 February 2020 and Commission Delegated Regulation 2022/1636 OJ L247, 23 September 2022.

19. The review and appeals process

When we make a decision that you can appeal against, we’ll tell you and offer you a review. We’ll explain the decision and tell you what you need to do if you disagree.

You’ll usually have 3 options. Within 30 days you can:

send new information or arguments to the officer you have been dealing with
have your case reviewed by a different officer
have your case heard by an independent tribunal

A review will be handled by a different officer from the one who made the decision. If you prefer to have an independent tribunal hear your case, you must write directly to the Tribunals Service.

If you want us to review a decision, you must write to the person who issued the decision letter, within 30 days of the date of that letter.

We’ll complete our review within 45 days, unless we agree another time with you.

If you’ve requested a review you cannot ask the tribunal to hear your case until the 45 days (or the time we agreed with you) has expired, or we’ve told you the outcome of the review.

If you’re not satisfied with the review’s conclusion, you’ve 30 days within which to ask the tribunal to hear your case.

If we cannot complete our review within 45 days, or any time we agreed with you, we’ll ask you if you’re willing to agree to an extension so that we can complete the review. If you do not agree to an extension, the review is treated as concluding that the decision being reviewed is upheld.

We’ll write and tell you this, you then have 30 days from the date of that letter to ask the tribunal to hear your case. Your request should set out clearly the full details of your case, the reasons why you disagree with us and provide any supporting documents. You should also state what result you expect from our review.

If you do not want a review you may appeal to the independent tribunal. You need to send your appeal to the Tribunals Service within 30 days of the date on the decision letter.

You can find more information about reviews and appeals in:

what to do if you disagree with a tax decision
how to appeal to the Tribunals Service

20. Contacting HMRC

In most cases you should be able to find the information you need in this notice. If not contact the HMRC excise helpline.

EMCS queries

If you’re having a problem with EMCS, you should check EMCS service and availability and issues.

You should contact the HMRC EMCS helpline if you:

have received an event report which is missing an attachment
are unable to submit a report of receipt in order to close a movement on EMCS
have any other queries

If your question is about the registration or enrolment process for EMCS then you should telephone the HMRC EMCS online services helpline.

Your rights and obligations

Read the HMRC Charter to find out what you can expect from us and what we expect from you.

Help us improve this notice

If you have any feedback about this notice email: customerexperience.indirecttaxes@hmrc.gov.uk.

You’ll need to include the full title of this notice. Do not include any personal or financial information like your VAT or company reference number.

If you need general help with this notice or have another question contact the HMRC EMCS helpline.

Putting things right

If you’re unhappy with HMRC’s service, contact the person or office you’ve been dealing with and they’ll try to put things right.

If you’re still unhappy, find out how to complain to HMRC.

How HMRC uses your information

Find out how HMRC uses the information we hold about you.

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Receive goods into and remove goods from an excise warehouse (Excise Notice 197)

1. Overview

1.1 About this notice

2. Excise Movement and Control System (EMCS)

2.1 General information about EMCS

2.1.1 Exceptions — where EMCS is not used

2.2 The eAD

2.2.1 eAD differences for movements between Northern Ireland and the EU

2.3 Overview of the EMCS process

2.4 Additional information for Northern Ireland consignors who split EMCS movements of energy

3. If EMCS is not available

3.1 General information

3.2 How to start a movement under fallback procedures

3.3 How to change the destination of goods under fallback procedures

3.4 Additional information for Northern Ireland consignors — how to split a consignment of energy products under fallback procedures

3.5 How to submit the report of receipt under fallback procedures

4. Simplified procedures

5. Receiving excise goods for warehousing

5.1 The receiving warehousekeeper’s responsibilities

5.2 Receipt of duty-suspended goods under EMCS procedures

5.2.1 Receiving goods under EMCS and the accompanying documents

If you discover a shortage or excess of goods on receipt

5.2.2 Receiving goods under an EMCS fallback accompanying document

5.2.3 Additional information for Northern Ireland warehousekeepers receiving goods under a fallback accompanying document

5.3 Procedures to follow for shortages and excesses

5.3.1 Receiving whisky or whiskey in casks from maturation warehouses

5.4 Procedures to follow when goods arrive without the correct movement documents

5.5 Receiving an incorrect consignment

5.6 Rejecting goods before arrival

6. Warehousing for export

7. Receipts from outside the UK

7.1 General information on warehousing of excise goods from outside the UK

7.1.1 Additional information for warehousekeepers receiving goods in Northern Ireland

7.2 Registered consignors

7.2.1 General information

Northern Ireland registered consignors

7.2.2 Allowable destinations to which goods may be dispatched

7.2.3 Dispatch of goods from a customs suspensive regime

7.2.4 Change of destination

7.2.5 Shortages during a duty-suspended movement

7.2.6 Discharge of a movement

For movements started by a registered consignor in Northern Ireland

7.2.7 Irregularities

7.2.8 Goods brought into Great Britain at Goods Vehicle Movement Service locations

7.2.9 Excise goods brought into Great Britain from the EU passing through Northern Ireland

7.3 EU VI-1 forms

7.3.1 Wine standards

8. Buying and selling duty-suspended goods in warehouse

8.1 General information

8.2 The seller’s responsibilities

8.3 The purchaser’s responsibilities

9. Abandoned excise goods

10. Removal of goods from warehouse

10.1 General information

10.2 Financial security for duty-suspended movements

Circumstances where we may allow reductions

10.3 Keeping records of the financial guarantee

10.4 More information on financial security

10.4.1 Changes of principal in transit

10.4.2 Joint movement and premises guarantees

10.4.3 Subsidiary or associated companies

10.5 Checking the validity of guarantees

10.6 Review of security levels

10.7 Claims against movement guarantees

11. Removal to home use by duty payment (release for consumption)

11.1 General information

11.1.1 Additional information of payment of excise duty in Northern Ireland (the excise duty off-set mechanism)

11.2 Payment documents

11.3 Online service for duty warrants for alcohol and tobacco goods

11.3.1 How to submit warrants online

11.3.2 XML channel

11.4 Payments other than by deferment

11.5 Deferment of excise duty

11.5.1 Excise Payment Security System (EPSS)

11.5.2 Liability

11.6 Scheduling for alcohol and tobacco goods only

11.7 Accounting for VAT on goods removed from warehouse on payment of duty

11.7.1 General information

11.7.2 When import VAT is due