Excise goods
Excise Goods
The import and export of excise goods, i.e. alcohol, tobacco and fuels, is heavily controlled by Border Force and HM Revenue & Customs (HMRC). At import, excise goods can either be cleared and all taxes accounted for, i.e. customs duty, excise duty and VAT, or they can be imported under excise duty suspension to be delivered to a bonded warehouse. Typically, exported excise goods will leave an excise warehouse and depart the UK under duty suspension.
Any excise goods that travel under duty suspension must be managed by a Registered Consignor and the details must be recorded in the Excise Movement and Control System (EMCS). If this does not happen, the goods and the vehicle carrying them are liable to seizure and, should this happen, those involved in the movement will be interviewed under caution.
Seizures are a regular occurrence. A first offence will result in significant penalties, generally 30% of the tax involved, for the owner of the goods and the owner of the vehicle used to move them, with the goods and vehicle typically returned. Subsequent offences tend to give rise to a penalty based on 100% of the tax involved and the goods and vehicle are not returned. As a result, it is imperative that EMCS is correctly used.
Registered Consignor
Assured Customs Declarations is approved by HMRC as a Registered Consignor and is thereby able to manage duty suspended imports and exports of excise goods.
Import procedures
The general principles associated with the importation of excise goods are laid out by HMRC online, see link below:
The role of EMCS
EMCS is a s computerised system for recording and monitoring the movement of excise goods in the territory of the EU. This facility was extended to the UK following Brexit, however, the UK and EU parts of the system are effectively divorced from each other.
To manage an excise movement in EMCS an approval must be held, but only a UK based company can hold a UK approval and only an EU based company can be authorised in the EU. In addition, only a UK excise movement guarantee can cover a UK duty suspended shipment and an EU guarantee is required in the EU.
As an example, an excise duty suspended movement of wine leaving an excise bond in Germany for the UK via Calais, will need an:
EMCS registration in Germany.
Export from Calais.
Import into Dover.
EMCS registration in the UK.
If the goods were moving in the opposite direction, the shipment might also require a transit declaration to allow the customs duty suspended movement of the goods across France. In these circumstances, the shipment will also be covered by a separate transit gurantee.