Temporary Registered Consignees

Foreword

This notice cancels and replaces Notice 204A (December 2011). Details of any changes to the previous version can be found in paragraph 1.2 of this notice.

1.Introduction

1.1 What is this notice about?

This notice sets out the UK's requirements for the commercial movement of excise goods by a Temporary Registered Consignee (TRC).

It contains our:

• general conditions and requirements
• approval procedures
• receipt procedures, and
• duty payment procedures.

It also sets out your rights and obligations as a TRC.

This notice does not cover duty-paid movements or goods imported from outside the EU.

1.2 What has changed?

This notice has been amended to:

• include information on the manual closure process where a report of receipt cannot be created on EMCS
• reflect the introduction of the following messages on EMCS from 15 October 2012
• Event Reports
• Explanations on reason for shortages or excesses
• Manual closure notifications
• clarify the rules regarding the acceptable delivery address for TRC consignments
• include contact details for the EMCS Helpdesk
• improve the guidance on how to calculate excise duty.

1.3 Who should read this notice?

You must read this notice if you are bringing, or want to bring, excise goods into the UK from other EU Member States in duty-suspension, on a one-off, or infrequent basis, in the course of your business.

You will find details about the procedures to follow throughout this notice.

If you wish to import goods commercially that are already duty-paid in the Member State of dispatch, then you should read Notice 204B Commercial Importers and Tax Representatives – EU trade in duty-paid excise goods.

1.4 What other notices will I need?

You will need:

1.5 What if I want a copy of any forms or notices?

If you wish to obtain any of the forms and notices mentioned in this notice, you may download copies of most of these from our website, go to www.hmrc.gov.uk If you experience difficulties in obtaining them from our website, you should phone the Excise and Customs Helpline on 0845 010 9000.

1.6 Who must I contact if I have a query?

Unless we tell you otherwise, either in this notice or in writing, your first point of contact is the Excise and Customs Helpline. We have included the details of other teams that you may need to contact in section 13 of this notice.

1.7 How long will it take for you to respond to my enquiry?

We will respond in line with our Charter Standards. Details of these are available from our website at hmrc.gov.uk.

2.Legal background

2.1 Where will I find details of the law?

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

You will find detailed requirements in:

This UK law enacts the requirements placed by EU Council Directive 2008/118/EC OJ L9 14.01.09 (as amended).

2.2 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.

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

If you do not meet your legal obligations we may impose financial penalties for breaches of the regulations or the conditions set out in this notice.

For more serious offences, we may:

• refuse further requests for movement authorisations
• revoke your approval
• prosecute you.

For information on how to appeal against any decision we make, see section 12.

3.Overview of the scheme

3.1 What are Temporary Registered Consignees (TRCs)?

TRCs are excise traders that are registered and approved to import duty-suspended excise goods into the UK from other EU Member States on a consignment by consignment basis. They may not hold or dispatch excise goods in duty-suspension.

3.2 Which excise goods are covered?

The scheme applies to:

• energy products, such as mineral oils (also known as hydrocarbon oils)
• alcohol and alcoholic drinks
• manufactured tobacco (cigarettes, cigars, hand-rolling tobacco and other smoking tobacco).

3.3 How does the TRC scheme work?

To take advantage of the TRC scheme you must follow certain basic procedures. You must first be approved as a TRC (see section 4). In addition, before undertaking each TRC movement of excise goods you must:

• provide us with advance information about the consignment
• complete and return form TRC2 TRC Movement Request, including the duty stamps declaration if applicable (see section 10), and secure payment of the UK duty due on the goods with us
• provide the consignor with the unique authorisation number (known as a Temporary Consignment Authorisation (TCA) number) which we will give you for the movement (see section 5)
• notify any changes regarding the details of the consignment, for example, change to quantities or type of goods, to the TRC team immediately by phone (see contact details in section 13)
• on receipt of the goods, complete a report/certificate of receipt for your supplier, provide us with a final accounting declaration and make sure that any duty and VAT due is paid in full (see sections 8 and 9).

You can find a simplified flowchart of the TRC scheme in Annex 1.

3.4 Do I have a legal right to be approved?

No. Approval and registration is at our discretion. We may reject applications, impose additional conditions and revoke approvals where we have good reason to do so. We explain this in more detail in section 4 of this notice.

3.5 May TRCs receive excise duty-suspended goods from UK suppliers?

No. The TRC scheme is for traders to obtain commercial consignments of excise goods from other EU countries.

3.6 Can I use the TRC scheme to receive goods from suppliers in non-EU countries?

No. The TRC scheme is for traders to receive commercial consignments of excise goods from other EU countries.

3.7 May TRCs receive goods which have been duty-paid in another EU Member State?

No. If you wish to import goods that have been duty-paid in another Member State into the UK, you will need to use one of the duty-paid movement schemes. Further information can be found in Notice 204B Commercial Importers and Tax Representatives - EU trade in duty-paid excise goods.

3.8 I am based in another EU Member State - can I use the UK TRC scheme?

Yes, as long as you meet all the UK TRC requirements (including having a place of business in the UK), follow all the procedures set out in this notice and also comply with any conditions in force in your own Member State.

3.9 Is there a limit to the number of times I can use this scheme?

Once approved, there is no limit on the number of times you can use the TRC scheme, however you can ordinarily only have a single valid TCA at any one time. This means that we will only supply you with a TCA for another consignment once you have

• notified us that the previous consignment has been received
• submitted the report of receipt for the consignment on EMCS or, where EMCS will not allow this, submitted a fully completed manual closure request form to the TRC team (see paragraph 8.3)
• paid any outstanding duties or taxes.

If you wish to receive more frequent consignments, you may apply for multiple TCA authorisation (see paragraph 5.13) or you should consider applying to become a Registered Consignee. For further information, please see Notice 203A Registered Consignees.

3.10 Can I bring excise goods in from another EU country without using the TRC scheme?

Yes. You may choose to:

• apply for approval as a Registered Consignee and comply with the procedures described in Notice 203A (you will be required to be VAT registered, have adequate duty deferment arrangements in place, keep an up to date duty account, and submit monthly returns)
• appoint a Registered Consignee to import goods on your behalf
• use the services of an authorised warehousekeeper who receives goods on your behalf into an 'excise warehouse' (Note: to hold goods in duty-suspension in an excise warehouse, you must be registered under the Warehousekeepers and Owners of Warehoused Goods Regulations 1999). For more details see Notice 196, or
• import goods that have been duty-paid in another EU Member State through one of the duty-paid schemes, as described in Notice 204B.

You must use one of these recognised schemes if you wish to import excise goods commercially into the UK. Failure to do so will result in the goods being liable to forfeiture and we may prosecute you.

3.11 Are there any marking requirements for excise goods that I need to be aware of?

Yes. Subject to certain exceptions, alcohol in bottle sizes of 35cl or more with an alcoholic strength of 30 per cent abv or more which are intended for retail sale in the UK must bear a duty stamp.

You can find more information about duty stamps in section 10 of this notice and in Notice DS5 UK Duty Stamps Scheme.

Also, there are fiscal marking and health warning requirements that you must be aware of and follow if you intend to import cigarettes or hand-rolling tobacco.

You can find more information about these requirements in Notice 476 Tobacco Products Duty.

4.Registration process

4.1 How do I apply to become a Temporary Registered Consignee (TRC)?

In order to apply to become a TRC, you must complete a TRC1 application form. Once completed, this should be sent to our National Registration Unit (NRU), whose address is provided on the form. Application forms are available from the HM Revenue & Customs (HMRC) website at hmrc.gov.uk, or by phoning the Excise and Customs Helpline on 0845 010 9000.

4.2 Are there any requirements that I must meet before I can apply to become a TRC?

In order to become a TRC you must:

• have a place of business in the UK. This is where you must receive your goods
• demonstrate a business need to become a TRC. For example, you should be able to provide our officers with a viable business plan for your proposed business, including details of who you intend buying goods from and details of your customer base
• demonstrate suitability to be a TRC. For example, that you or any key personnel of the business do not have any unspent convictions or a recent compounded settlement for any HMRC offence.

4.3 What information must I provide in support of my application?

You must provide all the information requested in the TRC application form. You must provide us with details of:

• your business (including whether you are VAT registered)
• the type or types of goods that you wish to be approved to receive
• any current or previous excise authorisations or approvals (including any applications that were refused)
• any unspent convictions under the Rehabilitation of Offenders Act (ROA) (other than for minor motoring offences), or any compounded settlements accepted during the preceding three years.

4.4 What happens if I provide false or misleading information?

If you provide false or misleading information on your application form, we may:

• revoke any registration or approval which we have granted
• impose penalties, and/or
• prosecute you.

4.5 How far in advance should I apply to become a TRC?

You must submit the completed application form to us no less than 45 working days prior to the date from which you wish to be approved.

4.6 Do you ever turn down applications?

Yes. We may refuse to approve you. In particular, we reserve the right not to approve or register anyone who, at the time of applying, has an ‘unspent’ conviction under ROA (other than for minor motoring offences) or has accepted a compounded settlement during the preceding three years. In the case of partnerships and limited companies, this also applies to all the partners or key officials of the company.

You should not assume that we will agree to approve you. In particular, you should not place orders or enter into any binding financial agreements on the assumption that we will grant approval.

4.7 How will I know whether my application has been accepted?

If we accept your application we will issue you with a certificate of registration. You should check the accuracy of the details on the certificate which should be kept in a safe place and made available to our officers on request. Any inaccuracies should be reported to the NRU immediately.

If we do not accept your application, we will inform you in writing and give our reasons for the rejection. If you disagree with our decision, you have the right to appeal.

For further information on what you should do if you wish to appeal against our decision, see section 12.

4.8 How long will my TRC registration last?

As long as you continue to demonstrate that you are fit and proper to hold an excise approval, still have a business need for being a TRC trader, and you do not ask us to cancel your approval, your registration as a TRC will last indefinitely. The temporary aspect of your TRC approval is in relation to the movement authorisations, which are only valid for a single movement within a very specific period of time.

We will review your approval from time to time as part of our assurance process. Where there is no longer a business need for you to be approved, we reserve the right to revoke it. If we do this, we will inform you of our decision in writing, and you have the right to appeal if you disagree. For further information on what you should do if you wish to appeal against our decision, see section 12.

4.9 Why do I need to register as a TRC and then separately apply for authorisation to receive goods?

The initial approval as a TRC means that you will not have to provide us with the same basic information every time you wish to receive a consignment, as we will already hold this as part of your TRC registration. It should also reduce the time it takes to obtain authorisation for each consignment, as detailed checks will have already been carried out at your initial approval.

In addition, it means that you will only have to register once for access to the Excise Movement and Control System (EMCS) in order to submit reports of receipt for your movements, using your TRC registration number, rather than reregistering for each consignment (see paragraph 6.2).

4.10 Must I tell you about any changes to my business?

Yes. You must notify us of any changes to the core detail on your certificate of registration, for example, a change of address. If the legal status of your business or company changes, for example, a sole proprietor becomes a partnership, the new legal entity must apply to become a TRC in its own right. HMRC will not automatically approve the new applicant.

You should also tell us when there are significant changes to your corporate structure affecting the day to day running of the business, for example a change of directors.

You must advise the NRU in writing within seven days of the change taking effect. HMRC will either provide you with a new certificate or an amendment to your current one, depending on the change.

You must destroy the previous certificate as soon as you receive the replacement certificate.

Failure to advise us of any changes may result in the revocation of your approval.

4.11 Will I automatically be able to receive all categories of excise goods?

On the TRC application form you will need to indicate what categories of excise goods you wish to receive. You must demonstrate a business need for each category you select. Your registration certificate will show which categories you are approved to receive as a TRC.

4.12 Once I am approved as a TRC, can I immediately start to receive consignments from other Member States?

No. Once you are approved as a TRC, you will still need to obtain a Temporary Consignment Authorisation (TCA) number for each consignment you wish to import. This is done by completing form TRC2 TRC Movement Request for each consignment and returning it to our TRC team (see section 5).

4.13 Are there any other approvals or registrations I will need to operate as a TRC?

Yes. You will need to be able to confirm the receipt of your goods electronically. Regardless of which method you use to do this, you will need to register and enrol for EMCS through our Online Services. Further information on this can be found in section 6.

4.14 Can you apply conditions to my approval?

Yes. All TRCs must comply with the conditions and restrictions detailed in this notice. In addition, we may apply specific conditions to your approval, which we will list on your certificate of registration.

For information on what you should do if you disagree with any conditions we impose, see section 12.

4.15 Can you revoke or vary the terms of my TRC approval?

Yes. HMRC can revoke or vary the terms of your approval immediately at any time for reasonable cause.

If HMRC revokes your approval we will inform you in writing giving the reasons for our action.

You must destroy your certificate of registration the day either your approval ceases or you receive your replacement certificate.

For information on what you should do if you disagree with any decision we make, see section 12.

4.16 How do I cancel my approval?

If you wish to cancel your approval you must write to the NRU at least 30 days before the date on which you wish to cancel it (see section 13 for contact details). We will not cancel an approval until any remaining consignment has been received and any outstanding duty paid.

We will inform you in writing that your approval has been cancelled. On the date of cancellation you must destroy your certificate of registration.

Note: you will remain liable for any duty unpaid on goods imported by you whilst you were approved.

5.Before you can receive excise goods

5.1 What forms do I need to complete or provide?

Once approved as a TRC, you will need to apply for authorisation to receive excise goods on a consignment by consignment basis. You must do this by completing form TRC2 TRC Movement Request for each consignment and sending this to our TRC team (as per the address on the form), together with payment to cover the total duty liability of that consignment (see section 9). We will then provide you with your Temporary Consignment Authorisation (TCA) number for that movement. Form TRC2 is only available from the TRC team.

5.2 What is a Temporary Consignment Authorisation (TCA) number?

A TCA is the authorisation number for a particular TRC movement. It is the TCA number that your supplier should use on the eAD, not your TRC registration number. It is specific to a single consignment, and can only be used by the supplier, and for the type and quantity of goods, stated on the original TRC2 form. The period of time that a TCA is valid is also limited, based on the dates of dispatch and arrival that you provide on your TRC2 form.

5.3 How far in advance should I apply for my TCA?

You should set aside sufficient time to:

• allow for receipt of the form (including postal delays)
• allow your payment to clear, and
• inform your supplier that duty has been secured

Provided we receive accurate and complete details from you, we aim to process your TRC2 form within ten working days.

Note: if you choose to secure the duty by unguaranteed cheque, the process may take slightly longer than ten working days.

5.4 What information will I need to provide for each consignment?

You must provide evidence to show that the TRC consignment is being made in the course of your business.

Before we will issue you with a TCA, you will need to complete form TRC2. This will ask you for trading details and information about the consignment, including:

• your TRC number, business name and address
• details of your supplier and customer
• intended dates of dispatch and arrival
• details of the consignment you wish to import (for example, brand and quantities)
• details of the transporter you will use (including vehicle registration details, if you have them)
• details of any excise goods on which duty stamps should be affixed (alcoholic spirits).

On this form you must also calculate the total duty payable on the consignment.

If you are not UK VAT registered you should account for the VAT due by declaring the value for VAT on the TRC2 form. You should add this information after receipt of the goods as you can only accurately calculate the value for VAT at this point.

We are unable to provide a TCA unless you have provided all the necessary information on your TRC2 form.

5.5 How do I complete the Movement Request form?

Details of how to complete form TRC2 are included on the form.

5.6 How do I secure the duty?

When you send the completed form TRC2 to our TRC team, you should also make sure that you provide security for the total amount of UK duty payable. If you do not do so through a Bacs transfer, your form should be accompanied by a banker’s draft, cheque, or postal order for the total amount. Payment must be received by us before we will authorise a movement.

Note: if you present a non-guaranteed cheque it may take up to ten working days to clear and we will not be able to process your form until that time.

5.7 Can you refuse to authorise a particular movement?

Yes. We reserve the right to refuse authorisation for a particular movement. However, we will normally agree to authorise your consignment where you have a valid TRC approval, are approved to receive that category of goods and have pre-paid the duty.

5.8 How will I know whether I can go ahead and ask for goods to be dispatched to me?

Once our TRC team have processed your TRC2 form, they will return it to you, endorsed with the TCA number for that consignment.

You must not proceed with the importation until we return the form, endorsed with your TCA number, to you. You must then provide your supplier with details of this TCA in order for him to dispatch the goods to you.

5.9 How do I use my TCA to receive a consignment?

You should provide your TCA number to your supplier, who should then use this as your excise ID number to raise an eAD for the movement. Because a TCA is specific to a consignment, it is important that you provide your supplier with the correct number. If you supply an incorrect TCA, your supplier will not be able to raise an eAD for that consignment, resulting in delay to the dispatch of the goods.

5.10 What must I do if I subsequently find that I do not need the TCA?

If you decide that you no longer wish to receive a particular consignment, you should notify our TRC team. Provided that the TCA has not already been used, they will cancel the TCA and normally refund any money used to secure the duty for that movement. We reserve the right to request further evidence demonstrating that the movement was cancelled before repaying any duty secured.

5.11 Do I have to notify you of any changes?

Yes. You must notify the TRC team of any changes to the details provided in the original form TRC2 as soon as you are aware of them, and at least 48 hours before the intended date of dispatch. This is because the new information needs to be sent to the supplier’s EU Member State before your supplier can raise an eAD for the movement.

Failure to notify us of these changes may mean the goods are liable to forfeiture and you are liable to a financial penalty.

5.12 What must I do if I wish to take delivery of more than one consignment?

You will need to complete a separate form TRC2 for each consignment. Unless you have obtained multiple TCA approval (see paragraph 5.13), you may only receive one consignment at a time. This means that you must take receipt of one consignment before we will provide you with another TCA for a subsequent one.

5.13 How do I obtain multiple TCA approval?

You must submit a request for multiple TCA approval to the NRU. This request must include a business case explaining why you require the ability to receive multiple consignments at the same time.

5.14 Can you refuse multiple TCA approval?

Yes. We will only grant you multiple TCA approval if you can demonstrate a genuine business need for it. If you cannot provide a suitable business case to support your application, approval will be refused.

If we do not accept your application, we will inform you in writing and give our reasons for the rejection. If you disagree with our decision, you have the right to appeal.

For further information on what you should do if you wish to appeal against our decision, see section 12.

5.15 Once I have a multiple TCA approval, can this be cancelled?

Yes. If it becomes apparent that you no longer require the ability to receive multiple consignments, then the approval may be withdrawn. In addition, if it becomes apparent that receiving multiple consignments is affecting your ability to keep accurate records of each consignment, or you fail to properly account for the duty, your approval may be withdrawn.

5.16 Can I use one TCA to receive goods from more than one supplier?

No. A TCA is only valid for one consignment and is specific to one supplier. If you wish to import goods obtained from more than one supplier, you will need a TCA for each supplier.

Unless you have obtained multiple TCA approval (see paragraph 5.13), you can only receive one consignment at a time, and you must take receipt of one movement before we will provide you with another TCA for a subsequent consignment.

5.17 Can I have the goods delivered to different delivery addresses?

No. All consignments must be delivered to the same delivery address. If you wish to have your goods delivered directly to different addresses, you should consider applying to become a Registered Consignee. For further information, see Notice 203A Registered Consignees.

5.18 Must goods always be delivered to my registered premises?

All consignments must be delivered to the same delivery address. This must normally be your place of business, as declared on your TRC1 application form. However, where you can show that you are unable to receive goods at this address we may exceptionally agree an alternative delivery address with you.

5.19 Do I need to have a separate TCA for each brand or type of product that I wish to import?

No. Provided that the goods are from a single supplier and are dispatched together in one consignment, one TCA can cover different brands and product types. Each specific brand and product type must be correctly declared on your original TRC2 form in order for your TCA to be valid.

5.20 Can I schedule movements?

No. As a TRC you are authorised on a consignment by consignment basis, therefore you must notify us of, and secure the relevant duty on, each individual consignment before we will provide you with the necessary TCA number.

5.21 How do I work out the duty?

We have provided examples of how to calculate the duty for excise goods in Annex 2. Please refer to these and to section 9, which tells you more about how to account for the duty.

6.Excise Movement and Control System (EMCS)

6.1 What is EMCS and how will it affect me as a TRC?

EMCS is an electronic system for recording and validating all movements of duty-suspended excise goods within the EU. For each movement an electronic record, known as an eAD, must be raised on EMCS and the Administrative Reference Code (ARC) that is generated as a result of this must accompany the goods.

You must make sure that you can access EMCS before you order your first consignment as a TRC (see paragraph 6.2).

6.2 Will I need any special IT systems to receive consignments as a TRC?

You will not necessarily need any special IT systems to receive consignments as a TRC. However, you will need access to the Internet to be able to confirm receipt of the goods electronically (known as submitting a Report of Receipt) through EMCS. This can be accessed either through the Online Services section of the HMRC website, or by developing or purchasing your own IT system, capable of directly interfacing with EMCS, either through a suitable software supplier or in-house solutions.

Whichever option you choose, you will first need to register for access to our Online Services. Guidance on how to do this is provided on the Online Services home page. (If you are already registered for Online Services for another reason, you do not need to re-register.) You will then need to add EMCS on to the list of services you wish to have access to. Your activation code will be sent to you through the post, which may take up to seven days to process.

As access to EMCS requires an excise registration number, you will only be able to enrol once you have been approved as a TRC. Your TRC number should then be used as your user ID for all future access.

You must make sure that you can access EMCS before you order your first consignment.

6.3 Must the consignor always use EMCS to move TRC goods?

Yes. However, where EMCS is not available to the consignor at the time of dispatch, the goods may be dispatched under fallback procedures (see paragraph 8.5).

The only exception to this is where a consignment of wine is being dispatched by a small wine producer based in a Member State that exempts such traders from the requirements of EMCS. In these cases the movement should instead be accompanied by a document drawn up by the small wine producer in accordance with EU Commission Regulation 436/2009. There are no receipt provisions under this regulation, therefore you will need to discuss with your supplier what evidence of receipt they require.

6.4 Can I raise the eAD instead of the consignor?

No. The consignor is the only one who can raise the eAD at the start of a movement.

6.5 Must my supplier always start the movement on the date of dispatch declared on my TRC2 form?

Yes. If the date of dispatch changes you must notify our TRC team as soon as you are aware of this. Failure to do so may result in your TCA for the movement becoming invalid.

6.6 How does my supplier know that I am approved as a TRC?

As an approved excise trader, your TRC and TCA numbers are recorded on the System for the Exchange of Excise Data (SEED). Your TCA information is shared between Member States (your TRC details are not shared between Member States but are instead used in the UK for administration purposes). Your supplier will therefore be able to verify your TCA information according to the rules in his Member State.

The TCA information held on SEED is also shared with EMCS. When your supplier attempts to create an eAD for your consignment, and enters your TCA number, the system will automatically validate it.

6.7 What if my TCA number is not recognised when my supplier tries to raise the eAD?

There are a number of reasons why your TCA number may not be recognised:

• your supplier may be entering the wrong number - you should make sure that you have provided your supplier with the correct TCA for that movement
• the TCA could have already been used - if the TCA has already been used to raise an eAD, then it will not be valid for any further movements
• the TCA may not be available - if you attempt to use a TCA before the date of dispatch or after the date of arrival stated on your TRC2 form, then the number will not be recognised.

You may need to apply for a new TCA number for your consignment.

6.8 What if I want to import a different quantity of goods to the one I originally notified?

You must notify the TRC team of the change to the quantity, and pay any additional duty, before the goods are dispatched.

If you import more goods than you originally notified on your TRC2 form and you fail to secure the UK duty on the extra goods with the TRC team before dispatch, they are liable to forfeiture on arrival in the UK. Such action may also result in a financial penalty or revocation of your TRC approval.

If the amount to be consigned is less than you originally notified, failure to notify us of the change before the goods are dispatched may result in delays to any claim for a refund of overpaid duty.

If we issue a new TCA, the original TCA will be cancelled and cannot be used. Any changes can take up to 48 hours to take effect.

6.9 Can I change my mind over the brand or type of goods that I want to import?

Provided you notify the TRC team before the goods are dispatched, you can change your mind over the brand or type of goods you wish to import. If less than 48 hours notice is given, there may be a delay to the dispatch of the goods, as we must communicate the changes to the authorities in your supplier’s Member State. Any additional duty must be secured before the movement can take place, which may also affect the dispatch date.

6.10 My intended supplier doesn’t have the goods I require - can I get them from somewhere else?

Provided you notify us before the goods are dispatched, you can change your intended supplier. If less than 48 hours notice is given, there may be a delay to the dispatch of the goods, as we must communicate the changes to the authorities in your supplier’s Member State. Failure to notify us of a change in supplier will invalidate your TCA; therefore a movement cannot take place until you notify us of the change.

7.The movement of the goods

7.1 Is there anything that must travel with the goods?

For consignments sent using EMCS, your supplier must make sure that the Administrative Reference Code (ARC) for that consignment accompanies the goods. If stopped, this will allow our officers to verify all the relevant information relating to that movement.

Goods moving under fallback arrangements must travel with an appropriate fallback accompanying document.

7.2 What if the goods do not arrive on the intended date?

As soon as you become aware that the goods will not arrive on the intended date of arrival declared on your TRC2 form, or have not arrived on the expected date, you should notify the TRC team.

You must immediately notify the TRC team of any changes of more than 24 hours to the expected date of arrival.

Our staff will advise you on what steps to take.

7.3 What if something happens to the goods during transit?

Where there is a serious incident affecting the movement, for example an accident or theft, you should notify the TRC team immediately. HMRC will then raise an Event Report on EMCS, based on the information you provide. This message will be visible to both you and your supplier.

Where an Event Report is raised by the authorities in the dispatching Member State there may be documents attached, which you will not be able to view on EMCS. In such cases the message you receive will tell you an attachment has been removed. You can obtain a copy of the attachment by contacting the EMCS Helpdesk.

7.4 How do I know whether my supplier has raised an eAD for my consignment?

Once your supplier raises an eAD using your TCA, you will receive a message through EMCS to tell you that this has been done. It is therefore in your interests to regularly access EMCS to check for messages.

On arrival of the goods, you should also expect the ARC to be noted on accompanying commercial documentation. The ARC is generated when your supplier raises the eAD. We recommend that you remind your supplier to do this when placing your order, as goods moving without an ARC are liable to forfeiture.

7.5 What if I receive a message for a consignment that I am not expecting or that is incorrect?

On EMCS you will be able to see the details of all movements that are consigned to you. As soon as you become aware of an unwanted consignment, for example, one that you believe has been incorrectly consigned to you, or which is for a different brand or quantity than you asked for, you should contact your supplier to alert them to the problem.

EMCS provides the ability to do this electronically. You have the option to send either an alert message in relation to a specific consignment to inform the consignor of an error on the eAD, or to send a rejection message in order to reject the consignment entirely.

The consignor can then cancel the movement or change the intended destination. In the event of an unwanted consignment physically arriving at your premises, you should immediately notify the TRC team (see paragraph 8.7).

Such movements may invalidate the TCA used, in which case you will need to apply for another TCA if you wish to receive a replacement consignment.

8.After the goods arrive

8.1 What must I do when I receive the goods?

As soon as you receive the goods, you must unload and check your consignment, immediately enter full details in your duty account (see paragraph 9.4) and complete the electronic Report of Receipt on EMCS for the movement. If EMCS is not available for you to provide a Report of Receipt, you should wait for EMCS to become available and then provide your Report of Receipt in the normal way. If EMCS is available but will not allow you to complete a Report of Receipt, you should follow the procedure detailed at paragraph 8.3.

In all cases, within four business days of receipt of the goods, you should make sure that you return your completed TRC2 form to our TRC team, endorsed with the relevant ARC for that consignment. In addition, if you are not VAT registered your TRC2 form should be accompanied by your VAT payment for the consignment. Until this is done, we will be unable to provide you with another TCA for any further movements. Please keep a copy of the TRC2 form for your records.

You will find further accounting information in section 9.

It is your responsibility to make sure that any goods which are required to bear a duty stamp have one affixed within 14 days of the importation of the goods (see section 10).

8.2 What certificate of receipt must I provide?

For all movements made using EMCS, you must submit an electronic Report of Receipt. In order to do this, you need to access EMCS, find the correct eAD for that movement using the ARC, and follow the online instructions. You must submit the Report of Receipt without delay, and certainly within five business days of the goods being received.

If EMCS is not available for you to provide a Report of Receipt, you should wait for EMCS to become available and then provide your Report of Receipt in the normal way. If EMCS is available but will not allow you to complete a Report of Receipt, you should follow the procedure detailed at paragraph 8.3.

8.3 What if EMCS will not allow me to submit the report of receipt?

If EMCS will not allow you to complete a Report of Receipt, you should notify the TRC team as soon as possible.

Where the problem is with the system and cannot be resolved, they will issue you with a manual closure request form. This must be completed and returned to the TRC team without delay, as the movement will remain open on EMCS until the required information is received. Movements remaining open on EMCS may result in the TRC team being unable to provide you with further TCAs. In addition, you may experience problems with your suppliers, as they may be required to pay the duty in their country by their Member State's authorities.

On receipt of a fully completed form, we will forward it on to the authorities in the Member State of dispatch for them to close the movement on EMCS. For manual closures carried out after 15 October 2012 you and the consignor should receive a message through EMCS confirming that the movement has been manually closed.

8.4 What if the goods arrive without an Administrative Reference Code (ARC)?

If goods arrive with a Fallback Accompanying Document instead of an ARC see section 8.5.

If goods arrive without either an ARC or a Fallback Accompanying Document, you must inform our TRC team immediately by phone (see section 13 for contact details).

Duty-suspended excise goods found to be travelling in the UK without either an ARC or a Fallback Accompanying Document are liable to forfeiture.

You should therefore take any steps you reasonably can to make sure that your supplier follows the correct procedure for moving duty-suspended excise goods.

If you require further assistance, our TRC team will inform you of the procedures to follow.

8.5 What if I receive goods with a Fallback Accompanying Document instead of an ARC?

If EMCS is unavailable at the time the goods are dispatched they will travel under 'fallback' arrangements, which require the goods to be accompanied by a fallback accompanying document. You will be able to identify this document because it will include the statement 'fallback accompanying document for movements of excise goods under duty-suspension of Excise Duty'. If a consignment of goods is received under cover of a fallback accompanying document you should wait for your consignment to be shown on EMCS and then provide your Report of Receipt on EMCS in the normal way.

The fallback accompanying document will not include an ARC, as the movement was not recorded on EMCS at the time of dispatch. A Local Reference Number (LRN) provided by the consignor will uniquely identify the movement instead. As soon as the system becomes available again in the other Member State the consignor will record the movement on to EMCS. You can use the LRN provided by the consignor, in place of the ARC, to identify your movement on EMCS.

8.6 What if EMCS is not available to submit the Report of Receipt?

If EMCS is not available for you to provide a Report of Receipt, you should wait for EMCS to become available and then provide your Report of Receipt in the normal way.

8.7 Can I refuse to accept a consignment?

TRCs are not permitted to use the refusal functionality on EMCS to refuse a consignment. This is because the refusal (either full or partial) is made by submitting a Report of Receipt. This creates a duty point, requiring immediate payment of the UK duty.

However, EMCS provides TRCs with the option to reject a consignment before or during transit. If you receive an eAD on EMCS which is incorrect or which you are not expecting, then you can use this facility to either alert the consignor to the discrepancy or reject the consignment outright, provided that the goods have not physically arrived at their destination.

In most cases, you may not reject goods consigned to you once they arrive at your premises. You must take full account immediately, submit the Report of Receipt accepting the movement and enter the details to your duty account records (see section 9). If there is any outstanding duty, our TRC team will provide the necessary guidance on how to pay this.

However, in certain circumstances, for example, for health and safety reasons, we may allow you to reject the consignment, even though the goods have arrived. This is only possible where a problem has been discovered on arrival, for example during a tailgate check. If goods have been offloaded and the transporting vehicle has departed, then this option is no longer available. If you wish to reject a consignment that has arrived, you should immediately contact the TRC team to obtain authorisation to do so (see section 13 for contact details). Once you have received this, you must inform your supplier of your decision and reject the consignment on EMCS. Your supplier will then amend the destination on the eAD to allow the goods to be delivered to an alternative address.

If you have accepted a consignment, you cannot subsequently reject it.

In all cases, the TCA for the movement will no longer be valid, so you will need to apply for another TCA to cover any replacement delivery.

8.8 What if I discover shortages on receipt?

You must record the actual quantities received on the Report of Receipt (see paragraph 8.2).

You must also:

• make sure you enter the actual goods received in your records
• notify the TRC team (see section 13), who will advise you what steps to take to claim a repayment of any monies due to you.

Note: we will normally only allow a refund for allowable losses or where it can be shown that the goods were never dispatched. Allowable losses are losses due either to a genuine accident or to the nature of the goods.

In some circumstances you may also wish to consider submitting an explanation on reasons for shortages or excesses message. Unlike the information that can and should be entered on the Report of Receipt when reporting a shortage, this message can only be read by you, the UK authorities and the authorities in the Member State of dispatch. This message can be useful where you may wish to provide information regarding discrepancies that may be sensitive and which you do not wish to share with your supplier.

8.9 What if I discover excesses on receipt?

Excesses should not normally happen, as you are required to inform us of any changes before the movement starts, and the correct amount must also be shown on the eAD, which must match your original declaration.

We may exceptionally allow you to make a voluntary declaration if you can show that the excess was completely accidental, for example, a packing error that could only be discovered after receipt. In these cases, you should record the actual quantities received on the Report of Receipt that you send back to your supplier, and contact our TRC team immediately (see section 13 for contact details). They will then provide advice on how to pay any outstanding duty.

If you do not pay duty on any excess goods they will be liable to forfeiture.

In some circumstance you may also wish to consider submitting an explanation on reasons for shortages or excesses message (see paragraph 8.8).

8.10 If there is a shortage on receipt, can I use the same TCA to bring in the outstanding amount?

No. A TCA can only be used for one consignment. You will need to apply for another TCA from our TRC team.

8.11 How should I account for VAT on my transactions?

If you are registered for VAT, you should account for acquisition VAT on your VAT return for the period covering the date of acquisition of the goods. You will find more details about this in Notice 725.

If you are not registered for VAT in the UK, you must pay the VAT at the current rate on the total value of the goods, including the excise duty. You may use your TRC2 form to pay VAT, but you will not be able to calculate the actual VAT payable until you have obtained the goods.

9.Accounting for duty

9.1 How should I work out the duty due on the goods?

You are responsible for working out the correct UK duty due on each consignment, even if someone else works out the duty value on your behalf.

You must:

• determine the correct three-digit tax type code for each product, and
• use the correct code for each class of goods received.

You should then calculate the duty due on the consignment. Annex 2 provides examples to help you with your duty calculation.

9.2 What rate of duty do I use?

You must use the rate in force for the type of goods you intend to receive at the time when the goods are received at your premises.

9.3 Where can I find out more information about tax types and duty rates?

Current duty rates and tax types are published in Volume 1 of the Integrated Tariff of the United Kingdom. Up to date duty rates can also be found in the Rates and Tables section of the HMRC website at hmrc.gov.uk.

If you have any problems finding the correct tax type, please phone the Helpline on Tel 0845 010 9000.

9.4 Must I keep a duty account and records for my TRC consignments?

Yes. You must maintain a permanent record, in summary form, listing the TCA reference, the goods received and the excise duty payable.

For each imported consignment, the excise duty account must show, per TCA:

• detail of the relevant ARC
• the total duty due to us
• the total duty due from us
• the net duty due from, or to, us
• any adjustments made, and
• payment details or a payment reference (as detailed on your TRC2 form).

You should make sure that your duty account is kept fully up to date.

The account must have an audit trail. This means that each entry in the account must be traceable back to the relevant source document. Similarly it must be possible to trace any source document to the relevant entry in the duty account.

You will find more information about record keeping in Notice 206 Revenue traders' records.

9.5 When do I pay the duty due on the consignment?

You must secure the total duty due on each consignment at the time of submitting your completed TRC2 form to the TRC team.

The secured amount becomes an actual duty payment once you notify us of the receipt of the goods. Should the amount of duty payable subsequently change, for example, due to excesses or shortages, either a further payment may be required or, if you can show that you have overpaid excise duty on allowable losses (see paragraph 8.8), you will be entitled to a refund of that overpayment. Once we receive full payment, we will discharge the TCA.

9.6 What method of payment will you accept?

We will accept a Bacs payment, banker’s draft, postal order or cheque.

You should be aware that if you present a non-guaranteed cheque it can take ten working days to clear. We are unable to fully process your form until your cheque has cleared.

If you pay by cheque and also need duty stamps to affix to bottles of spirits (see section 10), we will not provide them until the cheque clears.

9.7 Can I use a deferment account to secure the UK duty?

No. If you wish to use a deferment account to secure the UK duty you should consider applying to become a Registered Consignee instead. For further information see Notice 203A Registered Consignees.

10.UK Duty Stamps

10.1 What goods are required to bear a stamp?

All bottles and other retail containers of spirits, and wine or made-wine, with a strength of 30% alcohol by volume or more, with a capacity of 35cl or more, are required to bear a duty stamp when removed to home use in the UK.

10.2 Are there different types of duty stamps?

Yes. The duty stamp comes in two formats:

• a Type A stamp (known as a free-standing stamp) which must be attached directly to the bottle, and
• a Type B stamp (known as a label stamp), which is incorporated into bottle labels and printed by the industry's own label printers.

However, as a TRC, you can only use free-standing stamps.

10.3 When must the stamps be affixed?

If you are receiving unstamped product from the EU as a TRC you should obtain and affix free-standing stamps within 14 days of the arrival of your goods in the UK. If you fail to affix stamps within this period the goods are liable to forfeiture. You may also be liable, on summary conviction, to a fine of up to £5,000, or a financial penalty.

Alternatively, you can receive goods which already bear either a free-standing or label stamp affixed by a person in another Member State. You should check whether this is the case when placing your order to make sure that you do not request unnecessary duty stamps from us.

10.4 How do I acquire free-standing stamps?

You should request free-standing stamps from our TRC team by completing the duty stamps declaration part of the TRC2 form.

The TRC team will provide you with duty stamps for your consignment at the same time as they return your completed TRC2 form, endorsed with your TCA. They will only supply sufficient stamps for the consignment you are importing.

10.5 What information will I need to provide on my duty stamp declaration?

You will need to provide the following information:

• your name and address
• the delivery address for the stamps (this must be the address where you intend affixing the stamps)
• the type of product you are importing, that is, whisky, gin, vodka, rum, brandy, or other product and its alcoholic strength
• the number of bottles you are importing and their size.

You must also sign a declaration confirming that the goods will not already bear duty stamps when they are imported.

10.6 What happens if I receive goods which already bear a stamp?

If the goods you receive already bear duty stamps, and you have received free-standing stamps from the TRC team for that consignment, then you must return them to us. Failure to do so may render you liable to a financial penalty for each stamp that you fail to return.

10.7 What if I don’t have enough stamps?

If you receive more goods than you ordered, you are required to notify the TRC team. When they have received payment of the additional duty due, they will provide the additional stamps.

You should note that, where this happens, stamps must still be affixed to the goods within 14 days of their arrival in the UK. It is therefore in your interests to make sure that the TRC team receive payment of any additional duty as soon as possible.

10.8 What should I do if my stamps are lost, stolen or damaged?

In these circumstances you should inform the TRC team by the end of the business day following the day on which the loss or the discovery of the loss occurred. Depending on the circumstances, they will then provide you with replacement stamps.

10.9 What happens if I do not have the correct stamps for the goods I receive?

In these circumstances you should contact the TRC team. They will then advise you of the correct action to take.

Normally we will require that you return the incorrect stamps and reissue you with appropriate replacements. However, you must also confirm that the ABV and volume of the product are identical to the detail originally notified to us. If they are not, then you must also arrange for any outstanding duties to be paid before we will provide replacement stamps.

10.10 Where can I find out more about duty stamps?

You can find more information in Notice DS5 UK Duty Stamps Scheme.

11.General information

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

Yes.

When we visit you must do all of the following:

• admit us to your premises
• produce records for us to check, and
• allow us to inspect any stock.

Alternatively, there may be occasions when we ask you to produce records at one of our offices.

Failure to comply with these requirements may result in your approval being revoked.

11.2 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.

We aim to carry out our visits as quickly and efficiently as possible. You can help by providing the relevant records and helping us understand them, especially if there is anything special or unusual about your particular business.

11.3 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.

11.4 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 claims on you and your staff's time to a minimum, and
• where possible, try to resolve matters during the visit.

11.5 How can I help HMRC?

You can help by:

• Advising us as soon as possible about the reasons for any significant changes in the tax or duties you have declared or the systems used to calculate the declarations. You should do this by contacting our TRC team.
• Keeping your records, declarations and payments up to date.
• Providing us with the information and explanations we request.
• Asking us if you are unsure of any matter connected with the duty or tax. We may not look at all aspects of your records and business, so you cannot assume that you are accounting for everything correctly just because no errors are found. So it is in your own interest to ask if you are unsure.
• Helping us to understand your business and records.
• Replying to enquiries within the specified time.
• Quoting your registration number when you contact us.

11.6 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, then you should read section 12 Review and appeals process.

12.Review and appeals process

12.1 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 financial penalty, or
• a decision specifically connected to TRCs.

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 (see contact details at 12.5).

12.2 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.

12.3 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.

12.4 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.

12.5 Where can I get more information?

You can find further information about reviews and appeals in factsheet HMRC1 HMRC Decisions - what to do if you disagree. You can get this factsheet by:

• downloading it from our website, go to HMRC1
• phoning HMRC Orderline on 0845 900 0404

You can also find more information about how to appeal on the Tribunals Service website, or by phoning 0845 223 8080.

13.How to contact us

General enquiries

In the majority of cases, you should be able to find the information you need on our website at hmrc.gov.uk. If you cannot find the answer there, your first point of contact should be the Helpline.

HMRC
Customs, International Trade & Excise Written Enquiries team
Crownhill Court
Tailyour Road
Plymouth
PL6 5BZ

Email: Int enquiries

Phone: 0845 010 9000

Application/registration queries

If you have submitted an application to register as a TRC, and wish to either request an update on the progress of your application, or notify us of any changes to the information you have provided, you should contact our National Registration Unit (NRU).

HMRC National Registration Unit (NRU)
Portcullis House
21 India Street
Glasgow
G2 4PH

Phone: 0141 555 3495 or 3420 or 3689
Fax: 0141 555 3506

If your query does not relate to a current registration or new application, then you should not contact the NRU, as they will not be able to deal with your question.

Movement queries

If you have already registered as a TRC, and wish to either make a request for authorisation to receive a consignment of excise goods or to provide us with information relating to a consignment that we have already authorised, then you should contact our TRC team.

HMRC Temporary Registered Consignee (TRC) team
St Mungo’s Road
Cumbernauld
Glasgow
G67 1YZ

Phone: 01236 783545

If you are not already registered as a TRC or your query does not relate to a movement authorisation, then you should not contact the TRC team, as they will not be able to deal with your question.

EMCS queries

If you are having a problem with EMCS you should first check whether your question is answered on the EMCS pages of the HMRC website. In particular known issues and times that EMCS is unavailable are displayed here.

If the HMRC website does not provide the answer, or if you have received an Event Report which is missing an attachment, you should contact the EMCS Helpdesk.

Email: emcs.helpdesk@hmrc.gsi.gov.uk

Phone: 0845 600 5022

Please note: If your question is about the registration or enrolment process for EMCS, then you should instead contact the EMCS Online Services Helpdesk on Tel 0845 010 8500.

Annex 1

TRC scheme - flowchart

Annex 2 examples of duty calculation

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

The amount of duty due should be rounded down to two decimal places (for example, £2,957.3532 should be expressed as £2,957.35).

The following examples may assist you in calculating Excise Duty. Please note: the rates used are only examples and are not the current duty rates.

Current rates of Excise Duty for all excise goods can be found in the Rates and Tables section of the HMRC website or in Part 12, Volume 1 of the Tariff.

Wines and Cider

Excise Duty on wine and cider is charged on the total hectolitres of product. It is charged in bandings, according to the strength of the product (its abv) and whether it is still or sparkling. It is calculated by converting the bulk litres of product into hectolitres, and then applying the current rate of Excise Duty.

To find the Excise Duty on a case of still wine containing 12 bottles of 75cl at 7% abv:

• Convert the total volume to bulk hectolitres (hl). This is done by multiplying the number of bottles by their volume in litres and then multiplying that figure by the number of cases. This gives you the bulk volume in litres, therefore you need to divide this figure by 100 to convert it into hectolitres. In this case you get: 12 × 0.75/100 = 0.09 hl.
• The duty rate for the product is then applied to the bulk volume calculated.
• Multiply the bulk hectolitres by the current rate of duty for the relevant product and duty banding (for the purposes of this calculation we will use a duty rate of £214.02 per hl)
• Therefore the duty on the case in this example is: 0.09hl × £214.02 = £19.26.

Beer

Beer duty is charged on the hectolitre per cent of alcohol in the beer. It is calculated by converting the bulk litres of beer into hectolitres and multiplying by the alcohol by volume (abv) figure declared. The current Excise Duty rate is then applied to this figure. There are three main rates of beer duty:

1. General Beer Duty (GBD). The standard rate of GBD applies to all beer with an abv exceeding 2.8% but not exceeding 7.5%.

To find the Excise Duty on 327 cases of beer each containing 24 bottles of 33cl at 5% abv:

• Convert the total volume to bulk hectolitres. This is done by multiplying the number of bottles by their volume in litres and then multiplying that figure by the number of cases. This gives you the bulk volume in litres, therefore you need to divide this figure by 100 to convert it into hectolitres. In this case you get: 24 × 0.33 × 327/100 = 25.8984 hl
• The bulk hectolitre figure is then multiplied by the declared abv amount: 25.8984 × 5 = 129.492 hl per cent.
• Multiply the hl per cent amount by the current GBD rate. For the purposes of this calculation we will use a rate of £18.57.
• Therefore the duty on 327 cases in this example is: £18.57 × 129.49 = £2,404.62.

2. High Strength Beer Duty (HSBD) is payable on beer exceeding 7.5% abv. It is payable in addition to General Beer Duty (GBD). For the purposes of the calculation below we have used a GBD rate of £18.57 (as in the previous example) and a HSBD rate of £4.64 (25% of the GBD rate).

To find the total Excise Duty on 450 cases of beer each containing 24 bottles of 27.5cl at 8% abv:

First work out the hl per cent of alcohol in the consignment (as explained in the previous example)

24 × 27.5cl = 6.6 litres per case

6.6 × 450 = 2,970 litres in total

2,970/100 = 29.7 hl in total

29.7 × 8 = 237.6 hl per cent

Then multiply this amount by both the GBD and HSBD rates

237.6 × GBD rate of £18.57 = £4,412.232, truncated to £4,412.23

• × HSBD rate of £4.64 = £1,102.464, truncated to £1,102.46

Total Duty Payable

• + HSBD = £4,412.23 + £1,102.46 = £5,514.69
• There is also a reduced rate of General Beer Duty for lower strength beer (that is, beer exceeding 1.2% abv but not exceeding 2.8% abv). For the purposes of the calculation below we have used a GBD rate of £18.57 (as in the previous examples) and a reduced rate of £9.29 (50% of the General Beer Duty rate).

To find the Excise Duty on 375 cases of beer each containing 24 bottles of 27.5cl at 2.8% abv:

First find the hectolitre per cent of alcohol in the consignment (as explained in the previous examples)

24 × 275ml = 6.6 litres per case

6.6 × 375 = 2,475 litres in total

2,475/100 = 24.75hl in total

24.75 × 2.8 = 69.3hl%

To calculate the actual duty due, multiply the hl per cent amount by the duty rate

69.3 × £9.29 = £643.797, truncated to £643.79.

Please note: beer that qualifies for small brewery relief is eligible for different reduced rates of duty. For further information on how to calculate the correct duty rate on small brewery beer please see Notice 226 Beer Duty.

Spirits

Duty is charged on the alcohol content of the spirit (i.e. the litres of pure alcohol). This is calculated by multiplying the bulk litres by the alcoholic strength (abv). The Excise Duty is then obtained by multiplying this amount by the spirit duty rate.

To calculate the Excise Duty on 79 cases of 43% whisky each containing 12 × 70cl.

• Calculate the total volume per case by multiplying the number of bottles per case by their volume in litres: 12 × 0.70 = 8.4 litres.
• The alcohol volume per case is then calculated by multiplying the total volume per case by the abv expressed as a decimal: 8.4 x 0.43 = 3.612 litres of alcohol.
• The total alcohol volume for the consignment is obtained by multiplying by the number of cases: 3.612 x 79 = 285.348 litres of alcohol.
• Multiply the litres of alcohol by the current spirit duty rate (for the purposes of this calculation we will use a duty rate of £22.64).
• Therefore the duty on 79 cases in this example is: 285.34 × 22.64 = £6,460.09.

Glossary

If you have a question about VAT, Excise or Customs Duty

Go to hmrc.gov.uk.

Phone 0845 010 9000 Monday to Friday 8.00 am to 8.00 pm.

Os hoffech siarad â rhywun yn Gymraeg, ffoniwch 0845 010 0300, Llun i Gwener 8.00 am i 6.00 pm.

If you are hard of hearing or speech impaired and use a Textphone, phone 0845 000 0200.

Your rights and obligations

Your Charter explains what you can expect from us and what we expect from you. For more information go to Your Charter.

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
Excise Customs, Stamps & money (ECSM)
Excise Holding and Movement Team
3rd Floor West
Ralli Quays
3 Stanley Street
Salford
M60 9LA

Please note this address is not for general enquiries.

For your general enquiries please phone our Helpline 0845 010 9000.

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 hmrc.gov.uk and under quick links, select Complaints and appeals.

How we use your information

HMRC 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 HMRC unless the law permits us to do so. For more information go to hmrc.gov.uk and look for Data Protection Act within the Search facility.

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