Excise Duty: drawback

HMRC Reference:Notice 207 (May 2014) View Change History
 

Contents

Foreword

1.Introduction

1.1 What is this notice about?

1.2 What are the main changes?

1.3 Who must read this notice?

1.4 What other notices will I need?

1.5 What if I want a copy of any notices?

2.Legal background

2.1 What is the relevant law

2.2 Where can I get copies of the law and regulations?

2.3 How do HM Revenue & Customs refer to the law in this notice?

2.4 What happens if I fail to meet my legal obligations?

3.Overview of drawback

3.1 What is drawback?

3.2 What events can lead to a claim for drawback?

3.3 How does the drawback scheme work?

3.4 As a registered brewer, how does the drawback scheme differ if I wish to offset the drawback on my EX46 return?

3.5 As a tobacco manufacturer, how does the drawback scheme differ if I am claiming drawback for products returned for recycling, repackaging or destruction?

3.6 As a trader approved for oils duty deferment, how does the drawback scheme differ if I wish to offset the drawback on my HO10 return?

3.7 As a brewer, wine producer or cider maker, how does the drawback scheme differ if I wish to claim drawback for spoilt product?

4.Main conditions and requirements

4.1 What are the main conditions of drawback?

4.2 Can additional conditions be imposed?

4.3 What are 'eligible goods' for drawback purposes?

4.4 Who is an 'eligible claimant' for drawback purposes?

4.5 What do I have to do if goods carry fiscal marks or duty stamps?

4.6 Who is classed as the 'original duty payer' of excise goods?

4.7 I am the original duty payer of the goods on my drawback claim - what evidence of UK duty payment will I need?

4.8 I am not the original duty payer of the goods on my drawback claim - what evidence of UK duty payment will I need?

4.9 I am not the original duty payer of the goods on my drawback claim - what happens if I cannot obtain details of the original duty payment document?

4.10 How much notice do I need to give before I dispatch, export, warehouse for export or destroy the goods I am claiming drawback for?

4.11 What information do I need to provide in my notice of intention to claim drawback?

4.12 What if I need to change the details I submitted in my notice of intention to claim drawback?

4.13 Are there any time limits to claiming drawback?

4.14 Is there a minimum amount of drawback I can claim?

4.15 What records must I keep to support my claim for drawback?

5.Drawback forms

5.1 What forms are required to claim drawback?

5.2 Where can I get an NOI?

5.3 Where can I get a drawback claim form?

5.4 Who must complete and sign the NOI and drawback claim form?

5.5 What does it mean when I sign the NOI and drawback claim form?

5.6 Where do I send the completed NOI and drawback claim form?

6.Claiming drawback when dispatching goods to another EU country

6.1 What do I need to do before dispatching goods to another EU country?

6.2 When can I dispatch the goods?

6.3 When can I submit the claim for drawback (or offset the drawback on my EX46 return)?

6.4 What supporting evidence do I need to submit with my drawback claim form?

6.5 Do any special arrangements apply when I dispatch goods to a private individual in another EU country (also known as 'Distance Selling')?

7.Claiming drawback when exporting goods outside the EU community

7.1 What do I need to do before exporting goods outside the EU?

7.2 When can I export the goods?

7.3 When can I submit the claim for drawback (or offset the drawback on my EX46 return)?

7.4 What supporting evidence do I need to submit with my drawback claim form?

7.5 Do any special arrangements apply when I export goods to a private individual outside the EU?

8.Claiming drawback when warehousing goods for export

8.1 What is meant by 'warehousing for export'?

8.2 What do I need to do before warehousing goods for export?

8.3 What information is required on the warehousing advice note?

8.4 When can I send the goods to the warehouse?

8.5 When can I submit the claim for drawback?

8.6 What supporting evidence do I need to submit with my drawback claim form?

8.7 Do I need to obtain evidence that the goods were subsequently exported or dispatched from the warehouse?

8.8 Is there a time limit for exporting or dispatching the goods following their receipt into the warehouse?

8.9 What happens if the goods are not exported or dispatched from the warehouse within the specified time limit?

9.Claiming drawback for planned destruction of goods

9.1 Do goods need to be in a certain condition for me to destroy them and claim drawback?

9.2 What do I need to do before destroying goods?

9.3 What if you decide that my proposed method of destruction is not satisfactory?

9.4 Do I need to keep evidence that the goods were destroyed?

9.5 When can I destroy the goods?

9.6 When can I submit the claim for drawback (or offset the drawback on my EX46 return)?

9.7 What supporting evidence do I need to submit with my drawback claim form?

10.Claiming drawback in cases of accidental destruction

10.1 In what circumstances can I claim drawback following the accidental destruction of goods?

10.2 How do I report an accidental destruction?

10.3 How do I make the claim for drawback?

10.4 What supporting evidence do I need to submit with my drawback claim form?

11.Payment of claims

11.1 How much duty will be repaid?

11.2 How long will I have to wait to receive my payment?

11.3 How will the payment be made to me?

12.Reduction or rejection of claims

12.1 In what circumstances will you reduce my claim?

12.2 In what circumstances will you reject my claim?

13.Cancellation of claims

13.1 In what circumstances will you cancel my claim?

14.Visits by HM Revenue & Customs

14.1 Are there times when HMRC will visit my business and premises?

14.2 Will HMRC make an appointment?

14.3 Am I responsible for the safety of HMRC personnel?

14.4 What can I expect from HMRC?

14.5 How can I help HMRC?

14.6 What if I disagree with a decision made by your visiting officer?

15.Review and appeals process

15.1 What if I disagree with any decision you make about my affairs?

15.2 Is there a time limit to ask for a review?

15.3 What must I include in my request for a review?

15.4 What if I do not want a review?

15.5 Where can I get more information?

16.How to contact us

17.Glossary

Your rights and obligations

Do you have any comments or suggestions?

Putting things right

How we use your information

 

Foreword

This notice cancels and replaces Notice 207 (April 2012).

1.Introduction

1.1 What is this notice about?

This notice gives information about excise duty drawback. Excise duty drawback is a refund of UK excise duty. It is made when excise goods have not been and will not be consumed in the UK, providing certain conditions and requirements are met.

This notice provides general information on the:

  • conditions and requirements of drawback
  • forms used when claiming drawback
  • process for claiming drawback
  • repayment of the excise duty

1.2 What are the main changes?

This notice has been amended to:

  • reflect changes to the phone numbers for contacting the Excise and Customs Helpline
  • reflect a change to the fax number for sending completed Notices of Intention to the Drawback Processing Centre
  • clarify the definition of 'original duty payer'
  • introduce the facility to e-mail completed Notices of Intention to the Drawback Processing Centre
  • clarify the information required where goods are destroyed

.

You can access details of any changes to this notice since April 2014 either on our website, go to www.hmrc.gov.uk or from the Helpline, telephone: 0300 200 3700.

1.3 Who must read this notice?

You must read this notice if you are a business that dispatches, exports, warehouses for export or destroys excise goods in the course of your business and you want to claim repayment of the excise duty paid on those goods.

You will find details about the necessary conditions, requirements and procedures to follow throughout this notice.

1.4 What other notices will I need?

You will need:

Title


Notice number


Cider production


162


Wine production


163


Motor & heating fuels: General information and accounting for Excise Duty & VAT


179


Excise goods: receipt into and removal from an excise warehouse of excise goods


197


Revenue Traders’ Records


206


Beer duty


226


Tobacco products duty


476


The single market


725


UK Duty Stamps Scheme


DS5


1.5 What if I want a copy of any notices?

If you want a copy of any of the notices mentioned in this notice you can download them from our website. Go to www.hmrc.gov.uk and under 'Quick Links' select 'Library' then 'Publications'.

2.Legal background

2.1 What is the relevant law

The primary legal provisions applicable to this notice are:

Full title


Abbreviation


Alcoholic Liquor Duties Act 1979


ALDA


Customs and Excise Management Act 1979


CEMA


Finance (No. 2) Act 1992


F(No. 2)A 92


Finance Act 2008


FA 2008


Hydrocarbon Oil Duties Act 1979


HODA


Sales of Goods Act 1979


 

Tobacco Products Duty Act 1979


TPDA


You will find detailed requirements in the following regulations:

Full title


Abbreviation


Beer Regulations 1993


Beer Regs


Cider and Perry Regulations 1989


Cider Regs


Duty Stamps Regulations 2006


Duty Stamps Regs


Excise Goods (Drawback) Regulations 1995


EGDR


Excise Goods (Holding, Movement and Duty Point) Regulations 2010


HMDP


Hydrocarbon Oil Regulations 1973


HCO


Revenue Traders (Accounts and Records) Regulations 1992


RTAR


Tobacco Products Regulations 2001


TPR


Wine and Made-Wine Regulations 1989


Wine Regs


2.2 Where can I get copies of the law and regulations?

You can obtain copies of the law and regulations from The Stationery Office Ltd (TSO), formerly Her Majesty's Stationery Office. Go to www.tso.co.uk .

You can also find the law and regulations online at www.legislation.gov.uk. Note that at the time of publishing this notice, the primary law and the regulations on this website may not include all subsequent amendments.

2.3 How do HM Revenue & Customs refer to the law in this notice?

When we directly refer to the law in this notice we will show the standard abbreviations as shown in paragraph 2.1.

2.4 What happens if I fail to meet my legal obligations?

If you do not meet your legal obligations we can:

  • reduce or reject your claim (you will find more information about this in paragraph 12.1 and 12.2 in this notice)
  • impose specific conditions on your business and claims in accordance with Regulation 7(2) of EGDR
  • if your drawback claim has already been granted, cancel your claim in accordance with Regulations 13(1) and 13(2) of EGDR and assess you for the amount of duty repaid in accordance with Section 2(3A) of F(No. 2)A 92
  • issue you with a civil penalty in accordance with Regulations 14(1) and 14(2) of EGDR
  • issue you with an excise wrongdoing penalty in accordance with Section 41 of FA 2008
  • in the case of a criminal offence, instigate criminal court proceedings in accordance with Section 136 of CEMA which could result in seizure of the goods plus either a penalty or a term of imprisonment.

For information on how to appeal against any decision we make, see section 15.

3.Overview of drawback

3.1 What is drawback?

Drawback is a reimbursement of UK excise duty paid to an eligible claimant, providing certain conditions and requirements are met, when eligible excise goods have not been and will not be consumed in the UK.

3.2 What events can lead to a claim for drawback?

Paragraph 3.1 explains that to claim drawback the UK duty paid excise goods must not be consumed in the UK. Therefore, to be eligible for drawback, UK excise duty paid goods must either be:

  • dispatched to another EU country
  • exported outside the EU
  • warehoused for export, or
  • destroyed.

3.3 How does the drawback scheme work?

To make a claim for drawback you will need to check that you will be an eligible claimant and that your goods will be eligible goods for the purposes of a drawback claim.

You must then complete a 'Notice of intention to claim drawback' form (NOI) and send it to the Drawback Processing Centre (DPC). In addition you must prepare any documentation required to accompany the goods. For example the SAAD, export declaration on CHIEF or warehousing advice note. You must then make your goods and any accompanying documentation available for inspection and wait at least as long as the minimum period of notice in case we decide to inspect.

When the notice of intention period ends you are able to dispatch, export, warehouse or destroy your goods as notified on your NOI form.

Note: where goods are dispatched to another EU country, in addition to the above, the excise duty must also be secured by guarantee or payment of duty in the country of destination before the goods are dispatched.

After your goods have been dispatched, exported, warehoused or destroyed you can then complete and submit your drawback claim form with the required supporting evidence. The DPC will then process your claim and make a decision as to whether or not your claim will be paid. If your claim is successful the DPC will pay the duty due to you, normally into your bank account. If your claim is not successful, the DPC will explain this in writing and will return your claim form and supporting evidence.

The following flowchart illustrates the drawback scheme:

Overview of drawback (PDF 17K)

3.4 As a registered brewer, how does the drawback scheme differ if I wish to offset the drawback on my EX46 return?

Note: If you are a registered brewer and you want to claim drawback for goods that will be destroyed as they have become spoilt or otherwise unfit for use, please read paragraph 3.7.

As a registered brewer, you have the choice to offset the amount of duty drawback on your EX46 return rather than submit a drawback claim form and await payment from the DPC. If you choose this option the procedure for claiming drawback is different from the standard procedure outlined at paragraph 3.3.

You will need to check that you will be an eligible claimant and that your goods will be eligible goods for the purposes of a drawback claim.

You must complete the 'Notice of intention to claim drawback' form (NOI) including ticking the box to say you are offsetting the drawback on your EX46 return and send it to the Drawback Processing Centre (DPC). You must prepare any documentation required to accompany the movement for example the SAAD or export declaration on CHIEF. You must then make your goods and any accompanying documentation available for inspection and wait at least as long as the minimum period of notice in case we decide to inspect.

When the notice of intention period ends you are then able to dispatch, export or destroy your goods as notified on your NOI form.

Note: where goods are dispatched to another EU country, in addition to the above, the excise duty must also be secured by guarantee or payment of duty in the country of destination before the goods are dispatched.

After your goods have been dispatched or exported, instead of completing and sending a drawback claim form to the DPC, you simply record the amount of duty drawback in the appropriate field on your EX46 return and keep the supporting evidence for the claim for your records.

The following flowchart illustrates the drawback scheme for registered brewers offsetting the amount drawn back on their EX46 return:

Overview of drawback (Registered Brewer offsetting on EX46 return) (PDF 16K)

3.5 As a tobacco manufacturer, how does the drawback scheme differ if I am claiming drawback for products returned for recycling, repackaging or destruction?

If you are a tobacco manufacturer and you are claiming drawback for tobacco products that have been returned to your registered store (within three years of their removal to home use) to be recycled, repackaged or destroyed, you must follow the guidance in Notice 476 Tobacco products duty and consult with your assurance officer to offset the amount of duty drawback on your TP7 return. You must not follow the guidance in this notice.

However, if you are a tobacco manufacturer claiming drawback for tobacco products for reasons other than recycling, repackaging or destroying returned goods, follow the guidance in this notice to claim drawback using the standard procedure outlined in paragraph 3.3.

3.6 As a trader approved for oils duty deferment, how does the drawback scheme differ if I wish to offset the drawback on my HO10 return?

If you are approved for oils duty deferment and you wish to offset the amount of duty drawback on your HO10 return, follow the 'netting' procedure described in Notice 179 Motor & heating fuels: General information and accounting for Excise Duty & VAT Do not follow the guidance in this notice.

However, if you are not approved for oils duty deferment, or you don't wish to offset the amount of duty drawback on your HO10 return, follow the guidance in this notice to claim drawback using the standard procedure outlined in paragraph 3.3.

3.7 As a brewer, wine producer or cider maker, how does the drawback scheme differ if I wish to claim drawback for spoilt product?

If you are claiming drawback for goods that will be destroyed as they have become spoilt or otherwise unfit for use and you are a:

  • registered cider or perry maker
  • licensed wine or made-wine producer, or
  • registered brewer or registered holder

you must read the Cider Production Notice (Notice 162), Wine Production Notice (Notice 163) or Beer Duty Notice (Notice 226) as appropriate as you could be eligible to claim drawback of excise duty under those procedures.

If you are eligible to claim drawback of excise duty under those procedures, follow those procedures and not the procedures in this notice.

However if you are not eligible under those procedures, follow the guidance in this notice to claim drawback using the standard procedure outlined in paragraph 3.3.

4.Main conditions and requirements

4.1 What are the main conditions of drawback?

The main conditions of drawback are:

  • the goods have not been and will not be consumed in the UK
  • the person claiming drawback is an eligible claimant (refer to paragraph 4.4)
  • the excise goods are eligible goods (refer to paragraph 4.3)
  • the UK excise duty paid on the goods has not been paid more than three years before the event giving rise to the claim for drawback (refer to paragraph 3.2 for events that lead to drawback)
  • the correct notice of intention to claim drawback has been given (refer to paragraph 4.10)
  • in the case of goods dispatched to another EU country, that the duty due in the country of destination has been secured prior to dispatch (to the satisfaction of the fiscal authorities in that country) and then subsequently collected (refer to paragraphs 6.1 and 6.4)
  • the drawback claim documentation has been completed fully and accurately and has been submitted with the correct supporting evidence (refer to paragraphs 6.4, 7.4, 8.6, 9.7 and 10.4)
  • suitable records have been maintained to support the claim (refer to paragraph 4.15)

We will only pay drawback of UK excise duty if we are satisfied that all conditions and requirements in this notice and EGDR have been met.

4.2 Can additional conditions be imposed?

Yes. We can impose specific conditions on your business and claims. We will notify you of these in writing.

4.3 What are 'eligible goods' for drawback purposes?

Goods are eligible goods for drawback purposes if:

  • the UK excise duty has been paid (and has not been remitted, repaid or drawn back), and
  • those goods have been:
    • dispatched to another EU country
    • exported outside the EU
    • warehoused for export, or
    • destroyed.

Note that:

      warehousing for export does not apply to alcoholic drinks charged with duty under ALDA (for example spirits, beer, wine, cider, alcopops and so on)

      chewing tobacco is not an eligible product for drawback when dispatched to another EU country, and

      goods removed to the Isle of Man are not eligible goods due to the common duty system operated between the UK and the Isle of Man.

4.4 Who is an 'eligible claimant' for drawback purposes?

You are an eligible claimant for drawback purposes if you are a 'revenue trader' (see the glossary at section 17) and you dispatch, export, warehouse or destroy excise goods in the course of your business.

The eligible claimant is normally the owner of the goods immediately prior to the dispatch or export transaction.

We do not accept claims from private individuals.

Where eligible goods are being destroyed, the eligible claimant must be the person who originally paid the excise duty on those goods and the nature of the eligible claimant's business must not be wholly or mainly the destruction of duty paid excise goods.

If you are a registered cider or perry maker, a licensed wine or made-wine producer, or a registered brewer or registered holder and you are claiming drawback for the destruction of spoilt goods, you must also read paragraph 3.7 to establish if you are an eligible claimant for drawback or if another procedure applies.

If you are a tobacco manufacturer and you are claiming drawback for tobacco products that have been returned to your registered store to be recycled, repackaged or destroyed, you must also read paragraph 3.5 to establish if you are an eligible claimant for drawback or if another procedure applies.

4.5 What do I have to do if goods carry fiscal marks or duty stamps?

Before you can claim drawback on tobacco products bearing fiscal marks you must first destroy or permanently obliterate the fiscal marks. You can find out more information about fiscal marks in Notice 476 Tobacco Products Duty.

Before you can claim drawback on spirits bearing duty stamps you must first obliterate the duty stamps in accordance with the Duty Stamps Regulations (unless you are a Registered Mobile Operator). Note that at least two clear business days notice is required before you obliterate the stamps. You can find out more information about duty stamps in Notice DS5 UK Duty Stamps Scheme.

4.6 Who is classed as the 'original duty payer' of excise goods?

You are the original duty payer if you originally paid the excise duty for the goods on your drawback claim.

This normally means that you declared and paid the duty to HMRC at the duty point. However, you could still be classed as the original duty payer if your money or your deferment account is used by a third party to pay the duty. For example, where a warehousekeeper or importer (as part of the service they provide to you) submits the appropriate HMRC duty payment document but quotes your deferment account number.

It is also possible that you could be classed as the original duty payer if the excise duty was paid using a third party's money or deferment account. To qualify, the third party must have originally paid the duty to HMRC on your behalf and billed you for the excise duty as a separate item on the invoice issued to you for the service they provided, which you then paid.

You would not normally be considered to be the original duty payer if you simply buy duty paid goods from a supplier (this includes suppliers who are also warehousekeepers), even if the duty element of the overall cost is itemised separately on your invoice. In this case the original duty payer would be the person who actually first paid the duty to HMRC.

Contact the Helpline if you need help deciding if you are the original duty payer.

4.7 I am the original duty payer of the goods on my drawback claim - what evidence of UK duty payment will I need?

As the original duty payer, you must submit the original duty payment document. This can be either the original document or a copy of it.

By 'original duty payment document' we mean one of the following:

  • validated copy 2 or electronic confirmation of W5, W6, W50, W5D, W6D or HO10
  • HM2, HM4, TRC2
  • EX46, EX606
  • TP7
  • HO73, HO74, HO75
  • HO930, C&E930A, HO101
  • print out of CHIEF customs import declaration
  • duty deferment statement.

4.8 I am not the original duty payer of the goods on my drawback claim - what evidence of UK duty payment will I need?

If you are not the original duty payer, you must provide evidence that clearly shows the goods on your drawback claim are UK duty paid and provide a clear audit trail between those goods and the original duty payment document.

You will need to gather evidence from the original duty payer or payers and any persons in the supply chain who previously had ownership of the goods on your drawback claim.

You must provide the following evidence, numbered and scheduled in a way that makes it obvious which document relates to which set of goods:

  • a copy of your purchase invoice or invoices for the goods on your drawback claim
  • the name and VAT registration number of the business that originally paid the excise duty
  • the details of the original duty payment document or documents, including the name of the document and details as follows:
    • W5, W6, W5D or W6D - provide the date of the document and the consecutive reference number
    • W50 - provide the Collector's duty number and date shown on Receipt copy 3. If payment was deferred, also provide the duty deferment approval number (DAN)
    • HO10 - provide the duty deferment approval number (DAN) and the period ended time and date
    • HM2 - provide the dates covered by the return, the excise accounting ID number and the duty deferment approval number (DAN)
    • HM4 - provide the HMRC Authorisation Number and the date received from the 'HMRC use only' box
    • TRC2 - provide the TRC and TCA reference numbers and the date the goods were received
    • EX46 - provide the date of the document and the Brewers Reference Number
    • EX606 - provide the period dates and the Unique Reference Number (URN)
    • TP7 - provide the period dates and the Approval number
    • HO73, HO74, HO75 - provide the accounting period and Trader's reference
    • HO930, C&E930A - provide the accounting period and the Registration Number
    • HO101 - provide the VAT registration number (if one is shown) and the date of the declaration
    • CHIEF customs import declaration - provide the entry reference number and date
    • duty deferment statement - provide the duty deferment approval number (DAN) and the date of the statement
  • copies of delivery notes showing the name, address and VAT registration number of any businesses who took ownership of the goods between original duty payment and the purchase by you, including transaction dates.

In specific cases we can also make it a condition of your claim that you supply supplementary information about markings on the goods, for example batch or lot numbers, date and time of manufacture and so on.

Exceptionally, if you cannot obtain details of the original duty payment document from the original duty payer, see paragraph 4.9 below.

4.9 I am not the original duty payer of the goods on my drawback claim - what happens if I cannot obtain details of the original duty payment document?

In exceptional circumstances you might not be able to obtain the details of the original duty payment document from the original duty payer (this information is an essential part of the information requested at paragraph 4.8 that proves UK excise duty payment).

If the original duty payer cannot or will not provide you with the details of the original duty payment document, you can contact the Drawback Central Assurance Team (DCAT) to ask if alternative evidence can be submitted (known as an alternative evidence agreement).

If you would like to ask for an alternative evidence agreement, write to DCAT including the following information:

  • evidence that you have tried to obtain details of the original duty payment document from the original duty payer but this was unsuccessful
  • a written declaration on letter headed paper from the original duty payer's business, signed from an authorised signatory, stating:
    • that they cannot or will not provide you (or your intermediary if one exists in the supply chain) with details of original duty payment
    • that goods are supplied duty paid, and
  • the type(s) and brand(s) of the goods supplied.

If DCAT agree your alternative evidence agreement they will confirm this in writing. You can then submit your drawback claim with a copy of the alternative evidence agreement and the other information requested at paragraph 4.8 (the purchase invoice, details of the original duty payer and delivery notes).

Alternative evidence agreements must be agreed before you submit the NOI form.

An agreed alternative evidence agreement can be used for future drawback claims that involve the same original duty payer, supply chain and products. However, if any component of the alternative evidence agreement changes, the agreement is void and a new agreement must be reached with DCAT. We will periodically review alternative evidence agreements to check there has been no change.

We will withdraw alternative evidence agreements where we identify non compliance or revenue risks.

4.10 How much notice do I need to give before I dispatch, export, warehouse for export or destroy the goods I am claiming drawback for?

You must give us written notice of your intention to claim drawback before the event giving rise to the claim takes place (see paragraph 3.2) using the NOI form, unless the goods have been accidentally destroyed. This gives us the opportunity to inspect the goods and any accompanying documentation.

You must give us at least two clear business days notice between the day the NOI is received at the DPC and the day the goods will be dispatched, exported, warehoused for export or destroyed. Where goods will be destroyed and they are not held at your business premises, you must give us at least five clear business days notice between the day the NOI is received at the DPC and the day the goods will be destroyed.

A business day is a day that is not a Saturday, Sunday or Bank Holiday.

The day the NOI is received does not count towards the period of notice. For example, if the NOI is received on Monday the period of notice starts on Tuesday.

If the NOI is received by fax or e-mail after 16:00 it will be treated as received the following business day. For example, if the NOI is received by fax at 15:45 on Monday, it is treated as received on Monday and the period of notice starts on Tuesday. However, if the NOI is received by fax at 16:30 on Monday, it is treated as received on Tuesday and the period of notice starts on Wednesday.

If you intend to hold the goods only for the minimum period of notice required, or if you posted the NOI, contact the DPC by email or fax to confirm when the NOI was received so that you can make sure you provide the correct period of notice.

If you remove goods from the inspection address specified in your NOI or carry out destructions before the period of notice has expired we will reject your claim.

Period of notice example 1: NOI received by post at the DPC on Thursday 1 June:

  • The NOI is treated as received on Thursday 1 June
  • The period of notice is two business days - Friday 2 June and Monday 5 June (Saturday and Sunday are not business days)
  • The goods can be dispatched, exported, warehoused or destroyed (if the goods were held at the business premises) on or after Tuesday 6 June.

Period of notice example 2: NOI received by fax at 16:30 on Thursday 1 June:

  • The NOI is treated as received on Friday 2 June (the notice was received by fax after 16:00)
  • The period of notice is two business days - Monday 5 June and Tuesday 6 June (Saturday and Sunday are not business days)
  • The goods can be dispatched, exported, warehoused or destroyed (if the goods were held at the business premises) on or after Wednesday 7 June.

4.11 What information do I need to provide in my notice of intention to claim drawback?

You must supply us with the following information which is requested on the NOI form:

Type of claim


Information required


All claims


  • name, address, VAT registration number, phone and fax numbers
 
  • nature of your business
 
  • name, address, VAT registration number, phone and fax numbers of the supplier or suppliers you bought the goods from
 
  • name and address of the premises at which the goods will be held available for inspection
 
  • quantity and description of goods including how they are packaged
 
  • amount of duty paid on the goods

If you intend to...


you must also tell us...


Dispatch the goods to another EU country


  • The name and address of the premises the goods are being dispatched to in the other EU country
  • The name, address, VAT registration number, phone and fax numbers of the buyer in the other EU country (in the case of self supply, this will be the details of your registered business in the other EU country)

Export the goods outside the EU


  • The name and address of the premises the goods are being exported to in the other country
  • The name, address, phone and fax numbers of the buyer in the other country

Warehouse the goods for subsequent export


  • The name, address and approval number of the warehouse the goods are being removed to

Destroy the goods


  • The address of the premises at which the goods will be destroyed
  • The date and time destruction will take place
  • The method of destruction you intend to use
  • The reason for the destruction of the goods

4.12 What if I need to change the details I submitted in my notice of intention to claim drawback?

If you find that you need to change any information on your NOI form after you have submitted it, you must contact the DPC by email or fax and tell them about the change in writing.

If the change affects the inspection of the goods (for example the type or quantity of goods, the address where the goods are held for inspection and so on) the period of notice will start again from the business day after the day you advise the DPC of the change. The DPC will confirm the start date of the amended period of notice.

If you do not notify us of changes to the information on your NOI form, or adhere to a revised period of notice, your drawback claim may be reduced or rejected (see section 12 of this notice for more information).

4.13 Are there any time limits to claiming drawback?

Yes. The event giving rise to the claim for drawback (see paragraph 3.2) must take place within three years of the date the UK excise duty was paid on the goods.

4.14 Is there a minimum amount of drawback I can claim?

Yes. The minimum amount of drawback you can claim is £500.

If your claim is lower than £500 you can wait and submit multiple claim forms at the same time in order to meet the £500 minimum.

If the total amount of drawback you could have claimed in the last six months is less than £500 (and you have not submitted a drawback claim during that six months) the minimum amount of drawback you can claim becomes £50. So if you have not submitted a drawback claim in the last six months and you have a drawback claim or claims that total £50 or more, you can submit the drawback claim or claims.

4.15 What records must I keep to support my claim for drawback?

As a revenue trader (see the glossary at section 17) you need to keep certain records regarding your business. Notice 206 Revenue Trader's Records explains the records you must keep.

In addition to the records required in Notice 206, you must also keep the evidence of UK duty payment on the goods you claimed drawback for. If the goods were dispatched to another EU country, you must also keep the evidence of duty payment in that country.

5.Drawback forms

5.1 What forms are required to claim drawback?

There are two forms used within the drawback process. These are the EX75 'Notice of Intention to claim drawback' form (often called the NOI) and the EX76 'Claim for drawback of Excise Duty' form (often called the drawback claim form).

You use the NOI to notify us that you intend to make a claim for drawback. You submit this form before the event giving rise to drawback takes place (see paragraph 4.10). The NOI provides us with the opportunity to inspect the goods.

You use the drawback claim form to make the claim for drawback of excise duty. You submit this form after the event giving rise to drawback takes place. No payment will be made under drawback procedures unless a correctly completed drawback claim form is submitted along with any requested supporting evidence.

5.2 Where can I get an NOI?

You can get form EX75 'Notice of Intention to claim drawback' (NOI) from our website. Go to www.hmrc.gov.uk and under 'Quick Links' select 'Forms'.

You can reproduce the NOI using your own stationery but you must make sure that your version contains exactly the same information, in exactly the same order, as the official HMRC version.

5.3 Where can I get a drawback claim form?

The DPC will send you an EX76 'Claim for drawback of Excise Duty' form (drawback claim form) when you submit a fully completed NOI. The drawback claim form will include a HMRC claim reference number which you should record and quote on any further correspondence about your claim.

The drawback claim form is only available from the DPC. It is not available from our website or the Helpline.

If you lose the drawback claim form or it does not arrive, contact the DPC who will send you a duplicate form.

Note that if you are a registered brewer and you have chosen to offset the amount of duty drawback on your EX46, you will not be sent a drawback claim form. See paragraph 3.4 for an overview of the drawback process for registered brewers offsetting the amount of duty drawback on their EX46 return.

5.4 Who must complete and sign the NOI and drawback claim form?

You (the eligible claimant) can complete the NOI and drawback claim form or you can delegate this to a third party as long as the correct details are provided.

However, the NOI and drawback claim form must be signed by you or an authorised signatory within your business.

5.5 What does it mean when I sign the NOI and drawback claim form?

When you sign the NOI form you are stating that:

  • the information given on the form is true and complete
  • you have read and understood this Notice (Notice 207 Excise Duty: Drawback), and
  • you understand the NOI will form part of your claim for drawback.

When you sign the drawback clam form you are stating that:

  • the information given on the form is true and complete
  • you have read and understood this Notice (Notice 207 Excise Duty: Drawback)
  • the goods on the drawback claim form are eligible goods
  • you are an eligible claimant, and
  • your claim complies with the conditions laid down in the Excise Goods (Drawback) Regulations 1995.

5.6 Where do I send the completed NOI and drawback claim form?

You should post, fax or e-mail the completed NOI to the DPC. If you choose to e-mail your NOIs, you must submit each NOI on a separate e-mail.

You must post the completed drawback claim form to the DPC (the drawback claim form cannot be submitted by fax or e-mail). If you have previously sent the NOI by fax or e-mail you must also send the original NOI document with your completed claim form.

The contact details for the DPC are shown in section 16 of this notice.

6.Claiming drawback when dispatching goods to another EU country

6.1 What do I need to do before dispatching goods to another EU country?

When you intend to dispatch goods to a business in another EU country and claim drawback of the excise duty, you must before the goods are dispatched:

  • complete form SAAD (the form that must accompany duty paid goods as they move within the EU) or a commercial equivalent containing the same information and bearing the statement 'Simplified Administrative Accompanying Document (Excise goods) for fiscal control purposes'
  • if the claim includes alcoholic or tobacco products that bear fiscal marks or duty stamps, destroy or permanently obliterate the fiscal marks or duty stamps
  • secure the excise duty in the EU country of destination to the satisfaction of the fiscal authorities in that country or hold evidence that duty is not payable on the goods in the EU country of destination (we also recommend that a document showing that the duty has been secured in the EU country of destination accompanies the goods)
  • complete and submit form NOI, and
  • hold the goods for at least the relevant period of notice in case we decide to inspect the goods and the SAAD.

The recipient of the goods will normally guarantee or secure the duty but you could do this instead if the fiscal authority in the EU country of destination allows you to do so. If you are not sure of the requirements in the EU country of destination we suggest that you discuss this with your customer, your customer's agent or the fiscal authority in the EU country of destination.

When you move UK duty paid goods to another EU country, you must also make sure that you comply with any statutory VAT obligations that may arise in the receiving EU country as a result (further guidance on the way VAT is charged and accounted for on movements of goods within the EU is available in VAT Notice 725 The single market).

It is in your interest to check that you will be an eligible claimant and that the goods will be eligible goods. It is also in your interest to check that you will be within the time limit to claim drawback.

Note that you cannot move UK duty paid goods directly for storage in a duty suspended tax warehouse in another EU country.

6.2 When can I dispatch the goods?

You can dispatch the goods once you have completed the actions listed in paragraph 6.1 and after the relevant period of notice has ended.

If you remove goods from the inspection address specified in your NOI before the period of notice has expired we will reject your claim.

You must exercise control over the delivery of the goods.

6.3 When can I submit the claim for drawback (or offset the drawback on my EX46 return)?

You can submit your drawback claim form, or offset the drawback on your EX46 return, when the goods have been received in the EU country of destination and you have all the supporting evidence required (see paragraph 6.4).

You must also make sure that the claim or claims being submitted comply with the time limit and the minimum monetary limit.

6.4 What supporting evidence do I need to submit with my drawback claim form?

You must provide the following documents with your completed drawback form:

  • evidence of UK duty payment
  • the endorsed copy 3 of the SAAD (or commercial equivalent) with the information in section B 'Certification of Receipt' fully completed by the recipient
  • evidence showing that duty is chargeable and has been collected in the EU country of destination (such as the duty accounting document, issued by the fiscal authority in that country) or confirmation that the goods are not liable to excise duty in that country, and
  • if the claim includes alcoholic goods subject to duty stamps, a copy of the notification of obliteration sent to the Duty Stamps team plus an extract from your records showing the details of the stamps that were obliterated.

If you are a brewer offsetting the drawback on your EX46 return, you do not need to submit these documents to the DPC but you must keep them for your records for audit purposes.

6.5 Do any special arrangements apply when I dispatch goods to a private individual in another EU country (also known as 'Distance Selling')?

If you dispatch UK duty paid excise goods to private individuals in another EU country (known as Distance Selling), you must still follow the process outlined in this section 6.

However, if you frequently dispatch small packages to private individuals in other EU countries, we might be able to ease some of the requirements for these transactions. We might be able to:

  • waive the requirement to submit the NOI and provide the period of notice (due to the small size of the packages and the high frequency of the movements) and instead require you to provide a schedule with your drawback claim that lists all the transactions included in that claim and provides the same information as requested on the NOI, and
  • waive the requirement to submit orders and invoices with your drawback claim (you still need to keep these documents and make then readily available).

Note that, except for the copy of the SAAD, you still need to provide the rest of the supporting evidence requested in paragraph 6.4 for each of the transactions included in your drawback claim. As the SAAD is not used for Distance Sales you will need to provide other evidence and details to prove the goods were dispatched.

If you frequently dispatch small packages to private individuals in other EU countries and you would like to use these Distance Selling easements when claiming drawback, contact DCAT who will consider if an agreement is suitable for you. Note that an agreement to use Distance Selling easements must be made with DCAT before you start to use the easements.

If you would like more information about Distance Selling easements, contact DCAT in writing.

7.Claiming drawback when exporting goods outside the EU community

7.1 What do I need to do before exporting goods outside the EU?

When you intend to export goods to a business outside the EU and claim drawback of the excise duty, you must before the goods are exported:

  • lodge the export declaration on CHIEF (if another person is representing you at the port they can make the declaration for you), or if you are exporting by post complete form C&E 132 'Certificate of posting of goods delivered from a Customs and Excise postal depot of from an exporter's premises for exportation by post' (an international customs declaration available from the Post Office) and label each package with form C&E 83A

        Note for postal exports, as long as each parcel is issued with a unique identification number, we will accept a commercial equivalent of the form C&E 132 showing an audit trail of the unique identification tracking numbers assigned to each parcel. If you wish us to consider your use of such a system you must contact the DPC for further details

  • if the claim includes alcoholic or tobacco products that bear fiscal marks or duty stamps, destroy or permanently obliterate the fiscal marks or duty stamps
  • complete and submit form NOI, and
  • hold the goods for at least the relevant period of notice in case we decide to inspect the goods and the CHIEF declaration or C&E 132.

It is in your interest to check that you will be an eligible claimant and that the goods will be eligible goods. It is also in your interest to check that you will be within the time limit to claim drawback.

7.2 When can I export the goods?

You can export the goods once you have completed the actions listed in paragraph 7.1 and after the relevant period of notice has ended.

If you remove goods from the inspection address specified in your NOI before the period of notice has expired we will reject your claim.

You must exercise control over the delivery of the goods.

7.3 When can I submit the claim for drawback (or offset the drawback on my EX46 return)?

You can submit your drawback claim form, or offset the drawback on your EX46 return, when the goods have been exported from the UK and you have all the supporting evidence required (see paragraph 7.4).

You must also make sure that the claim or claims being submitted comply with the time limit and the minimum monetary limit.

7.4 What supporting evidence do I need to submit with my drawback claim form?

You must provide the following documents with your completed drawback form:

  • evidence of UK duty payment
  • the CHIEF S8 print out showing the Entry reference number and a 'departed' status of 60 for direct exports or 62 for indirect export, or if you are exporting by post a certified C&E 132, and
  • if the claim includes alcoholic goods subject to duty stamps, a copy of the notification of obliteration sent to the Duty Stamps team plus an extract from your records showing the details of the stamps that were obliterated.

If you are a brewer offsetting the drawback on your EX46 return, you do not need to submit these documents to the DPC but you must keep them for your records for audit purposes.

7.5 Do any special arrangements apply when I export goods to a private individual outside the EU?

If you dispatch UK duty paid excise goods to private individuals outside the EU, you must still follow the process outlined in this section 7.

However, if you frequently dispatch small packages to private individuals outside the EU, we might be able to ease some of the requirements for these transactions. We might be able to:

  • waive the requirement to submit the NOI and provide the period of notice (due to the small size of the packages and the high frequency of the movements) and instead require you to provide a schedule with your drawback claim that lists all the transactions included in that claim and provides the same information as requested on the NOI, and
  • waive the requirement to submit orders and invoices with your drawback claim (you still need to keep these documents and make then readily available).

Note that you still need to provide the rest of the supporting evidence requested in paragraph 7.4 for each of the transactions included in your drawback claim.

If you frequently dispatch small packages to private individuals outside the EU and you would like to use these easements when claiming drawback, contact DCAT who will consider if an agreement is suitable for you. Note that an agreement to use these easements must be made with DCAT before you start to use the easements.

If you would like more information about these easements, contact DCAT in writing.

8.Claiming drawback when warehousing goods for export

8.1 What is meant by 'warehousing for export'?

'Warehousing for export' allows businesses to place certain excise goods in duty suspension in an excise warehouse and reclaim the excise duty paid on them providing that the goods will be dispatched to another EU country under duty suspension arrangements or exported outside the EU.

The excise goods must be dispatched to another EU country under duty suspension arrangements or exported outside the EU within 6 months of the date the drawback claim was made.

Note that warehousing for export does not apply to alcoholic drinks charged with duty under ALDA (for example spirits, beer, wine, cider, alcopops and so on). Therefore, for example, you can not place duty paid beer in an excise warehouse and reclaim the duty because the beer will be dispatched to another EU country or exported outside the EU.

8.2 What do I need to do before warehousing goods for export?

When you intend to warehouse goods for export, you must before the goods are warehoused:

  • create a warehousing advice note in triplicate on headed notepaper, a delivery note or other commercial documentation (see paragraph 8.3) and sign the 'Goods for export or dispatch to another EU country' declaration
  • complete and submit form NOI, and
  • hold the goods for at least the relevant period of notice in case we decide to inspect the goods and the warehousing advice note.

It is in your interest to check that you will be an eligible claimant and that the goods will be eligible goods. Note that warehousing for export does not apply to alcoholic drinks charged with duty under ALDA (for example spirits, beer, wine, cider, alcopops and so on).

It is also in your interest to check that you will be within the time limit to claim drawback.

8.3 What information is required on the warehousing advice note?

The warehousing advice note must include the following information:

  • the authorised warehousekeepers name
  • the address of the receiving warehouse
  • your own unique number identifying the advice note
  • your name, address and VAT registration number
  • a description of the packages and goods, including the Combined Nomenclature (CN) code and the value of the goods
  • the expected date of export or dispatch
  • the expected destination
  • a description of transporting vehicles
  • the identifying numbers and types of any seals applied.

In addition, the exact wording of the following two declarations must be included:

  • Goods for export or dispatch to another EU country
    • excise goods listed above (which do not include any alcoholic drinks charged with duty under the Alcoholic Liquor Duties Act 79) are to be warehoused for export or dispatch and will be the subject of a claim for repayment of excise duty in accordance with the conditions set out in the Excise Goods (Drawback) Regulations 1995. They may not be sent for home use or sold to any person in warehouse without prior written permission from HM Revenue & Customs.

        Signed ………………………………………………………

  • Certificate of receipt

        The excise goods listed above (which do not include any alcoholic drinks charged with duty under the Alcoholic Liquor Duties Act 79) were received into this warehouse on ………………. under stock account reference ………………………… for the purposes of subsequent export or dispatch. They may not be sent for home use or sold to any person in warehouse without prior written permission from HM Revenue & Customs.

        Signed ……………………………………………………….

The first declaration must be signed by you, the eligible claimant, (or by an authorised signatory in your business) before the goods are moved to the warehouse to instruct the warehousekeeper.

The second declaration must be signed by the warehousekeeper when the goods are received to show they acknowledge the receipt of the goods and the conditions of removal.

8.4 When can I send the goods to the warehouse?

You can move the goods to the duty suspended area of the warehouse stipulated in your warehouse advice note once you have completed the actions listed in paragraph 8.2 and after the relevant period of notice has ended.

If you remove goods from the inspection address specified in your NOI before the period of notice has expired we will reject your claim.

You must keep the second and third copy of the warehousing advice note with the goods when you move them to the warehouse (you keep the first copy for your records). The warehousekeeper will return one of the copies of the warehousing advice note to you with the 'Certificate of receipt' declaration signed.

You must exercise control over the delivery of the goods.

8.5 When can I submit the claim for drawback?

You can submit your drawback claim form when the goods have been received into the duty suspended area of the warehouse stipulated in your warehousing advice note and you have all the supporting evidence required (see paragraph 8.6).

You must also make sure that the claim or claims being submitted comply with the time limit and the minimum monetary limit.

8.6 What supporting evidence do I need to submit with my drawback claim form?

You must provide the following documents with your completed drawback form:

  • evidence of UK duty payment, and
  • the warehousing advice note with the 'Certificate of receipt' declaration signed by the warehousekeeper.

8.7 Do I need to obtain evidence that the goods were subsequently exported or dispatched from the warehouse?

Yes. You must get a signed statement from the warehousekeeper certifying that evidence of export or dispatch is available for inspection.

The statement for goods dispatched to another EU country must include the wording:

  • I certify that the Report of Receipt message (IE818) for ARC …… (give the ARC number of the movement) relating to the dispatch of ...... (give details of goods) with stock account reference ...... (give the stock account reference) has been successfully submitted on EMCS.

        Signed .............................. Warehousekeeper

The statement for goods exported outside the EU must include the wording:

  • I certify that the CHIEF S8 print out showing the Entry reference number and a 'departed' status of ….. (give the appropriate code, either 60 or 62) relating to the export of ...... (give details of goods) with stock account reference ...... (give the stock account reference) is held at this warehouse and is available for inspection.

    Signed .............................. Warehousekeeper

You must keep the signed statement for your records.

8.8 Is there a time limit for exporting or dispatching the goods following their receipt into the warehouse?

Yes. You must export or dispatch the goods within six months from the date you submitted your drawback claim.

8.9 What happens if the goods are not exported or dispatched from the warehouse within the specified time limit?

If you do not export or dispatch the goods within six months from the date you submitted your drawback claim you must tell the DPC. The DPC will cancel your drawback claim and you will be assessed for the duty we repaid you.

When you have paid the assessment for the amount of duty we originally repaid to you as drawback, we will supply written confirmation of receipt of the drawback repayment. You can then show the written confirmation to the warehousekeeper in order to remove your goods from the warehouse.

9.Claiming drawback for planned destruction of goods

9.1 Do goods need to be in a certain condition for me to destroy them and claim drawback?

Yes. The quality of the goods must be unsatisfactory due to:

  • faulty manufacture
  • deterioration, or
  • contamination

for you to claim drawback for planned destructions.

See section 14 of the Sales of Goods Act 1979 for a definition of 'satisfactory quality'.

9.2 What do I need to do before destroying goods?

When you intend to destroy goods that are of an unsatisfactory quality, you must before the goods are destroyed:

  • complete and submit form NOI, and
  • hold the goods for at least the relevant period of notice in case we decide to inspect the goods (see paragraph 4.10 to check which period of notice applies).

Destruction normally takes place at the address where the goods are available for inspection, however we can permit goods to be destroyed at another UK address such as an independent destruction premises. If we decide that your proposed place of destruction is not satisfactory we will tell you in writing.

It is in your interest to check that you will be an eligible claimant (note that you must be the original duty payer) and that the goods will be eligible goods. It is also in your interest to check that you will be within the time limit to claim drawback.

If you are a registered cider or perry maker, a licensed wine or made-wine producer, or a registered brewer or registered holder and you are claiming drawback for the destruction of spoilt goods, you must also read paragraph 3.7 to establish if you are an eligible claimant for drawback or if another procedure applies.

If you are a tobacco manufacturer and you are claiming drawback for tobacco products that have been returned to your registered store to be recycled, repackaged or destroyed, you must also read paragraph 3.5 to establish if you are an eligible claimant for drawback or if another procedure applies.

9.3 What if you decide that my proposed method of destruction is not satisfactory?

If we decide that the proposed method of destruction stipulated in your notice is not satisfactory we will tell you in writing. If you decide to continue with your claim using another method which is acceptable to us, your period of notice will start again from the business day after the day you advise the DPC of the new destruction method.

To be a suitable destruction:

  • alcohol must be denatured by adding a substance that makes it unfit for drinking
  • tobacco must be destroyed or rendered unsmokeable by incineration, grinding or denaturing (see Notice 476 Tobacco Products Duty), and
  • energy products must be destroyed in a non chargeable way, for example useful heat can not be produced (see Notice 179 Motor & Heating Fuels: General information and accounting for Excise Duty & VAT).

9.4 Do I need to keep evidence that the goods were destroyed?

Yes. You need to keep records and evidence of the destruction specifying the actual goods destroyed. This could include a certificate of destruction signed by a responsible official of the destruction company, incineration receipts, stock and disposal records of any residual products, environmental permissions and permits, and so on.

The documentation must include the following details for the destroyed goods:

  • brand
  • quantities
  • time, date & place of destruction
  • the ABV, if the goods are alcoholic products

9.5 When can I destroy the goods?

You can destroy the goods on the date and time stated in your NOI as long as you have completed the actions listed in paragraph 9.2 and the relevant period of notice has ended.

If you destroy the goods before the period of notice has expired we will reject your claim.

You must destroy the goods in the manner stipulated in your NOI (or agreed with the DPC).

We reserve the right to attend the destruction or denaturing site during the process. If someone else carries out the destruction on your behalf you remain responsible for ensuring compliance with all of our procedures.

9.6 When can I submit the claim for drawback (or offset the drawback on my EX46 return)?

You can submit your drawback claim form, or offset the drawback on your EX46 return, when the goods have been destroyed and you have all the supporting evidence required (see paragraph 9.7).

You must also make sure that the claim or claims being submitted comply with the time limit and the minimum monetary limit.

9.7 What supporting evidence do I need to submit with my drawback claim form?

You must provide the following documents with your completed drawback form:

  • evidence of UK duty payment
  • evidence of destruction.

The documents you submit must include the following details for the destroyed goods:

  • brand
  • quantities
  • time, date & place of destruction
  • the ABV, if the goods are alcoholic products.

Where a third party destroys the goods the information provided must be verifiable with the records of the destruction company.

If you are a brewer offsetting the drawback on your EX46 return, you do not need to submit these documents to the DPC but you must keep them for your records for audit purposes.

10.Claiming drawback in cases of accidental destruction

10.1 In what circumstances can I claim drawback following the accidental destruction of goods?

It is your responsibility to protect your goods by insuring them against normal risks. We will only consider claims for goods that were destroyed accidentally, (as opposed to goods that were destroyed following the planned destruction procedure described in this notice), for the following reasons where you can show that your insurance does not cover the duty liability of the goods:

  • the goods were accidentally destroyed whilst being removed to a warehouse for export
  • the goods were being exported or dispatched and were accidentally destroyed in the United Kingdom after leaving the premises at which they were available for inspection
  • goods were destroyed by, or as a result of:
    • civil commotion
  • riot
  • terrorism
  • war
  • explosion
  • earthquake
    • any other fortuitous event that in our opinion it would not have been reasonable to insure the goods against the risk of destruction by, or as a result of, that event.

10.2 How do I report an accidental destruction?

You must email or fax the DPC at the earliest opportunity to report the accidental destruction in writing. You will need to provide:

  • your name, address, VAT registration number, phone and fax numbers
  • the nature of your business
  • the name, address and VAT registration number of the person who supplied the goods to you
  • the name, address and VAT registration number of your customer, if relevant
  • a description of the goods, including whether they were packaged or in bulk
  • the amount of duty paid or a provisional estimate if that cannot be immediately ascertained
  • if a drawback claim had been initiated, the NOI reference number, and
  • details of the destruction including the time and place.

You will need to satisfy us that the goods have not been and will not be consumed in the UK.

Any undue delay in reporting the accidental destruction could result in your claim being rejected or reduced.

10.3 How do I make the claim for drawback?

When you have notified the DPC of the accidental destruction and provided all the information requested in paragraph 10.2 the DPC will send you a claim form.

You can submit your claim for the actual amount of UK duty paid on the goods when you have all the supporting evidence required (see paragraph 10.4).

10.4 What supporting evidence do I need to submit with my drawback claim form?

You must provide the following documents with your completed drawback form:

  • evidence of UK duty payment
  • evidence that the duty you are seeking to recover is outside the scope of normal insurance cover
  • evidence that you took adequate measures to safeguard the goods before and after the accident, and
  • evidence that your claim is genuine, for example
  • copies of police reports
    • statements from witnesses (for example the driver, security personnel, onlookers, third parties and so on)
    • correspondence with insurance companies (for example insurance assessor's reports).

11.Payment of claims

11.1 How much duty will be repaid?

We will repay the amount of UK excise duty originally paid subject to all the conditions and requirements in this notice and EGDR being met.

11.2 How long will I have to wait to receive my payment?

We can process your claim once we receive your completed claim form with all the required supporting documentation and evidence. We aim to process your claim within 30 working days. Once your claim has been processed it can take up to 10 working days for you to receive your payment.

Remember that if you are a registered brewer and you are offsetting the amount of duty drawback on your EX46 return you will not physically receive a payment from HMRC as the duty is repaid to you through the offset.

11.3 How will the payment be made to me?

You will receive your payment by bank transfer (BACS). Exceptionally we could pay by payable order. We will always pay any amount greater than £50,000 by BACS.

12.Reduction or rejection of claims

12.1 In what circumstances will you reduce my claim?

We will reduce your claim where:

  • the amount of UK excise duty stated on the NOI or claim form is higher than the amount of duty that was actually paid
  • the drawback claim form contains more, or different, goods than declared on the NOI (we will only consider the goods declared on the NOI)
  • the SAAD shows shortages for the goods that were received
  • you notified a change to the NOI but the revised period of notice was not adhered to (we will only consider the goods that were declared on the original NOI as long as the original period of notice was adhered to and the inspection address did not change), or
  • you only met the conditions and requirements of this notice and EGDR for some, and not all, of the goods declared on the NOI and drawback claim form (we will only consider the goods for which all the conditions and requirements were met).

Please also refer to paragraph 2.4 of this notice.

12.2 In what circumstances will you reject my claim?

We will reject claims where:

  • goods have already had drawback paid on them
  • you failed to show that UK duty has been paid on the goods
  • in cases of dispatch to another EU country, it is not proved that the excise duty was physically collected in the country of destination to the satisfaction of the fiscal authorities in that country
  • goods fail to arrive at their destination
  • goods are not destroyed to our satisfaction, or
  • you have not complied with all of the conditions or procedures set out in this notice or notified by us in writing. This includes not complying with the relevant period of notice.

Please also refer to paragraph 2.4 of this notice.

13.Cancellation of claims

13.1 In what circumstances will you cancel my claim?

If it comes to light that you were not an eligible claimant or the goods were not eligible goods we will cancel your drawback claim. If your drawback claim has already been granted we will assess you for the amount of duty repaid.

Please also refer to paragraph 2.4 of this notice.

14.Visits by HM Revenue & Customs

14.1 Are there times when HMRC will visit my business and premises?

Yes. We may visit you from time to time to verify your claims. When we visit you must:

  • admit us to your premises at any reasonable time
  • produce records and goods for inspection
  • provide facilities for examining and taking account of goods
  • allow samples to be taken, and
  • observe health and safety standards.

We may also decide to witness destructions. If you are carrying out (or someone else is carrying out on your behalf) a destruction at remote premises, you must make sure that any request by us for access to witness the destruction is granted.

14.2 Will HMRC make an appointment?

We will normally make an appointment. Occasionally visits are made without an appointment but the attending officer will give the reason for the unannounced visit. All our officers carry identification and will show this when they arrive.

14.3 Am I responsible for the safety of HMRC personnel?

Yes. While our officers are on your premises you must make sure their safety at all times.

14.4 What can I expect from HMRC?

You can expect that we will:

  • identify ourselves by name on arrival, and produce an identity card
  • explain the main purpose of the visit
  • be polite and considerate and deal with your tax affairs confidentially
  • keep demands on you and your staff's time to a minimum, and
  • where possible, try to resolve matters during the visit.

14.5 How can I help HMRC?

You can help by:

  • keeping your records up to date
  • providing us with the information and explanations we request, and
  • helping us to understand your business and records.

During our visit we will wish to see your business records relating to:

  • imports
  • dispatches, and
  • exports.

We could also examine:

  • profit and loss trading statements
  • management accounts and reports
  • balance sheets
  • internal and external auditors reports, and
  • any other record maintained for a business purpose.

14.6 What if I disagree with a decision made by your visiting officer?

If you disagree with a decision, discuss it first with the visiting officer.

If you still disagree you should read section 15 of this notice.

15.Review and appeals process

15.1 What if I disagree with any decision you make about my affairs?

When we make a decision that you can appeal against we will tell you and offer you a review. We will explain the decision and tell you what you need to do if you disagree, for example with:

  • the amount of an assessment
  • the issue of a penalty, or
  • a decision specifically connected to a claim for drawback.

You will usually have three 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, or
  • 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.

15.2 Is there a time limit to ask for a review?

Yes. 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 will complete our review within 45 days, unless we agree another time with you.

You cannot ask the tribunal to hear your case until the 45 days (or the time we agreed with you) has expired, or we have told you the outcome of the review.

If you are not satisfied with the review's conclusion, you have 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 will ask you whether you are 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 will write and tell you this; you then have 30 days from the date of that letter to ask the tribunal to hear your case.

15.3 What must I include in my request for a review?

Your request should set out clearly the full details of your case, the reasons why you disagree with us and provide any supporting documentation. You should also state what result you expect from our review.

15.4 What if I do not want a 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.

15.5 Where can I get more information?

You can find further information about reviews and appeals in factsheet HMRC1 'HM Revenue & Customs decisions - what to do if you disagree'. You can get this factsheet by downloading it from our website, go to www.hmrc.gov.uk and type 'HMRC1' in the search field, or by telephone: 0300 200 3700.

You can also find out more information about how to appeal on the Tribunals Service website, go to www.justice.gov.uk, or telephone: 0845 223 8080.

16.How to contact us

The Helpline (for excise or drawback general queries)

Telephone: 0300 200 3700 Monday to Friday 8am to 6pm.

Os hoffech siarad â rhywun yn Gymraeg, ffoniwch 0300 200 3705, Llun i Gwener 8am i 6pm.

If you are hard of hearing or speech impaired and use a Textphone, telephone: 0300 200 3719.

Drawback Processing Centre (DPC)

HM Revenue & Customs
Drawback Processing Centre
Portcullis House
21 India Street
Glasgow
G2 4PZ

Fax: 03000 516249
Email (for submission of NOIs only): drawback.noi@hmrc.gsi.gov.uk
Email: nationaldrawbackcentre@hmrc.gsi.gov.uk

Drawback Central Assurance Team

HM Revenue & Customs
Drawback Central Assurance Team
Portcullis House
21 India Street
Glasgow
G2 4PZ

17.Glossary

Term


Description


Alcohol


In this notice the term includes spirits, beer, wine, made-wine, cider and perry


ARC


Administrative Reference Code. This is the validation number for a movement of duty-suspended excise goods. It is obtained by submitting a movement on EMCS and must accompany the goods during the movement.


CHIEF


Customs Handling of Import and Export Freight (the computer system that all imports into, and exports out of, the UK must be recorded on)


Denaturant


A substance which on its own or in conjunction with other substances renders alcohol unsuitable for human consumption. An acceptable form must be used for drawback


Dispatch


Goods sent from the territory of the UK to a place within the EU to which Directive 2008/118 applies


Duty


Excise duty (see description below)


Duty Stamp


A stamp attached to spirits and wine with


    • an ABV of 30% or above and
    • in bottle sizes of 35cl or above

to indicate that UK duty has been or will be paid


Eligible goods


Excise goods on which Excise duty drawback may be claimed


EMCS


Excise Movement Control System. The computer system that records the movement of excise goods under duty suspension arrangements within the EU


EU


European Union


Event


In this notice the event that gives rise to the drawback claim. This could be a dispatch, export, warehouse for export or destruction


Excise duty


An indirect tax on alcohol, tobacco products and energy products. Both UK produced and imported goods are subject to Excise duty


Excise goods


Goods liable to excise duty


Excise warehouse


A place approved for the holding of goods on which Excise duty is suspended


Export


Goods consigned from the UK to a destination outside the EU (this includes the Channel Islands)


Fiscal mark


A mark carried on packets of cigarettes and packets of hand-rolling tobacco to indicate that UK duty has been or will be paid


Recipient


In this notice a person who receives duty paid excise goods


Removed


Excise goods have been dispatched to another EU country or exported outside the EU


Revenue trader


In this notice, anyone carrying on a trade or business concerned with


    • the buying, selling, importation, exportation, dealing in, or handling of excise goods, or
    • the financing or facilitation of any such transactions or activities

SAAD


Simplified Administrative Accompanying Document. The form that must accompany duty paid goods as they move within the EU as per Regulation 3649/92


Satisfactory Quality


As defined by section 14 of the Sales of Goods Act 1979


Supplier


In this notice a person who supplies duty paid excise goods


Tobacco products


In this notice the term includes cigarettes, cigars, cigarillos, hand-rolling tobacco, other smoking tobacco and chewing tobacco


UK


United Kingdom


VAT


Value Added Tax


Your rights and obligations

Your Charter explains what you can expect from us and what we expect from you.

Do you have any comments or suggestions?

If you have any comments or suggestions to make about this notice, please write to:

HM Revenue & Customs
Holding & Movement Policy Team
3rd Floor West
Ralli Quays
3 Stanley Street
Salford
M60 9LA

Putting things right

If you are unhappy with our service, please contact the person or office you have been dealing with. They will try to put things right. If you are still unhappy, they will tell you how to complain.

If you want to know more about making a complaint, go to www.hmrc.gov.uk and under quick links, select Complaints and appeals

How we use your information

HM Revenue & Customs is a Data Controller under the Data Protection Act 1998. We hold information for the purposes specified in our notification to the Information Commissioner, including the assessment and collection of tax and duties, the payment of benefits and the prevention and detection of crime, and may use this information for any of them.

We may get information about you from others, or we may give information to them. If we do, it will only be as the law permits to:

  • check the accuracy of information
  • prevent or detect crime
  • protect public funds

We may check information we receive about you with what is already in our records. This can include information provided by you, as well as by others, such as other government departments or agencies and overseas tax and customs authorities. We will not give information to anyone outside HM Revenue & Customs unless the law permits us to do so.

For more information go to www.hmrc.gov.uk and look for Data Protection Act within the search facility.

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