|HMRC Reference:Notice 204A (October 2012)||View Change History|
Paragraphs 16.9 and 16.10 of this notice provide further details on risk indicators and outline some of the checks that you may carry out to identify high risk transactions. Please note these are not intended to be prescriptive or exhaustive. Once you have established the most appropriate due diligence tests for your business, these should be used to test both new and existing transactions and supply chains linked to your business. Some checks may be more appropriate to your business than others.
This notice sets out the UK's requirements for the commercial movement of excise goods by a Temporary Registered Consignee (TRC).
It contains our:
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.
This notice has been amended to:
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.
You will need:
Revenue Traders' Records
Tobacco Products Duty
The Single Market
UK Duty Stamps Scheme
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 0300 200 3700.
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.
We will respond in line with our Charter Standards. Details of these are available from our website at www.hmrc.gov.uk.
You will find the primary legal provisions applicable to the contents of this notice in:
The Customs and Excise Management Act 1979
The Rehabilitation of Offenders Act 1974
Finance Act 1994
You will find detailed requirements in:
The Revenue Traders (Accounts and Records) Regulations 1992 (SI 1992 No. 3150)
The Duty Stamps Regulations 2006 (SI 2006/202)
The Excise Goods (Holding, Movement and Duty Point) Regulations 2010 (SI 2010/593)
This UK law enacts the requirements placed by EU Council Directive 2008/118/EC OJ L9 14.01.09 (as amended).
When we directly refer to the law in this notice, we will show the standard abbreviations as shown in paragraph 2.1.
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:
For information on how to appeal against any decision we make, see section 12.
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.
The scheme applies to:
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:
You can find a simplified flowchart of the TRC scheme in Section 14.
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.
No. The TRC scheme is for traders to obtain commercial consignments of excise goods from other EU countries.
No. The TRC scheme is for traders to receive commercial consignments of excise goods from other EU countries.
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.
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.
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
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.
Yes. You may choose to:
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.
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.
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 www.hmrc.gov.uk, or by phoning the Excise and Customs Helpline on 0300 200 3700.
In order to become a TRC you must:
You must provide all the information requested in the TRC application form. You must provide us with details of:
If you provide false or misleading information on your application form, we may:
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.
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.
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.
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.
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).
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.
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.
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).
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.
Yes. There are standard conditions that must be complied with in order to remain approved as a TRC. You must:
Yes. 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.
Yes. HMRC can revoke or vary the terms of your approval immediately at any time for reasonable cause. For example, where appropriate due diligence checks are not being carried out (see section 16).
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.
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.
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.
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.
You should set aside sufficient time to:
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.
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:
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.
Details of how to complete form TRC2 are included on the form.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
We have provided examples of how to calculate the duty for excise goods in section 15. Please refer to these and to section 9, which tells you more about how to account for the duty.
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).
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.
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.
No. The consignor is the only one who can raise the eAD at the start of a movement.
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.
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.
There are a number of reasons why your TCA number may not be recognised:
You may need to apply for a new TCA number for your consignment.
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.
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.
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.
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.
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.
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.
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.
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.
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).
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.
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. You and the consignor should receive a message through EMCS confirming that the movement has been manually closed.
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.
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.
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.
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.
You must record the actual quantities received on the Report of Receipt (see paragraph 8.2).
You must also:
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.
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).
No. A TCA can only be used for one consignment. You will need to apply for another TCA from our TRC team.
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.
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 should then calculate the duty due on the consignment. Section 15 provides examples to help you with your duty calculation.
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.
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 www.hmrc.gov.uk.
If you have any problems finding the correct tax type, please phone the Helpline on 0300 200 3700.
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:
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 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.
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.
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.
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.
Yes. The duty stamp comes in two formats:
However, as a TRC, you can only use free-standing stamps.
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.
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.
You will need to provide the following information:
You must also sign a declaration confirming that the goods will not already bear duty stamps when they are imported.
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.
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.
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.
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.
You can find more information in Notice DS5 UK Duty Stamps Scheme.
We may visit …
In order to …
your business, from time to time
the delivery address shown on the TRC2 form
When we visit you must do all of the following:
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.
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.
Yes. While our officers are on your premises you must make sure their safety at all times.
You can expect that we will:
You can help by:
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.
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:
You will usually have three options. Within 30 days you can:
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).
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.
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.
If you do not want a review you may appeal to the independent tribunal. You need to send your appeal to the Tribunals Service within 30 days of the date on the decision letter.
You can find further information about reviews and appeals in factsheet HMRC1 HMRC Decisions - what to do if you disagree. You can get this factsheet by:
You can also find more information about how to appeal on the Tribunals Service website, or by phoning 0845 223 8080.
In the majority of cases, you should be able to find the information you need on our website at www.hmrc.gov.uk. If you cannot find the answer there, your first point of contact should be the Helpline.
CITEX Written Enquiry team
PO Box 30001
Online: Excise Enquiry form
Phone: 0300 200 3700
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)
21 India Street
Phone: 03000 516231
Fax: 03000 516249
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.
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
Phone: 03000 583099
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.
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.
Phone: 03000 575 989
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 0300 200 3701.
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.
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:
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:
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
Total Duty Payable
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.
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.
Due diligence is the appropriate reasonable care a company exercises when entering into business relations or contracts with other companies, and how it responds in a deliberate reflexive manner to trading risks identified.
Without effective safeguards in place, there are considerable risks to all businesses along alcohol supply chains of becoming implicated in illicit trading.
This condition requires that all excise registered businesses operating in the alcohol sector consider the risk of excise duty evasion as well as any commercial and other risks when they are trading. Doing so will help to drive illicit trading out of alcohol supply chains, and reduce the risk to businesses of financial liabilities associated with goods on which duty has been evaded.
From 1 November 2014 it becomes a condition of your approval as a Temporary Registered Consignee that you must:
(a) objectively assess the risks of alcohol duty fraud within the supply chains in which you operate
(b) put in place reasonable and proportionate checks, in your day to day trading, to identify transactions that may lead to fraud or involve goods on which duty may have been evaded
(c) have procedures in place to take timely and effective mitigating action where a risk of fraud is identified
(d) document the checks you intend to carry out and have appropriate management governance in place to make sure that these are, and continue to be, carried out as intended.
The fraud risks within a supply chain are unique to each business, and objective assessment of the likelihood of your trading activities contributing to fraud is an essential first step to developing effective due diligence procedures. You will need to consider the full range of trading relationships you have established and the potential for fraud in each.
The main risks within the alcohol sector include:
A key feature of the smuggling or diversion of alcohol to the UK market is the ability to source product either where the excise duty has been suspended or it has been refunded under drawback provisions. To assess your exposure to this risk you will need to objectively assess if there is potential for duty evasion resulting from your trading activity. You will need to know who you are selling to and where the goods are destined for and understand the market for these products. Without this, there is a risk of supplying goods directly or through a third party into illicit supply chains.
Import and warehousing procedures are often exploited to provide cover for the illicit movement of goods. Fraudsters will seek to distribute duty evaded goods as well as counterfeit alcohol into legitimate retail supply chains. To assess your exposure to this risk you will need to objectively consider whether the supply chain and trading activity is credible which includes knowing who you source goods from and provide a service to.
High level indicators of risk include goods being received from unusually complex or apparently uneconomic supply routes, for example, regular supplies of UK produced goods that have been shipped out to another Member State and then re-imported. If you are sourcing duty paid goods you will also need to consider the credibility of suppliers and the level of evidence you can obtain to demonstrate the provenance and duty status of goods.
Paragraph 16.9 of this notice provides further detail on risk indicators.
Once you have established the main risks of fraud you may be exposed to, your regular checks during trading should be of a type and level sufficient to establish the integrity of the excise transactions and supply chains you are trading in. This level needs to be reasonable and proportionate to the risk.
Depending on the nature of your business and complexity of your transactions, checks will need to be individually tailored. In particular, they must be sufficiently sensitive, yet robust enough, to pick up potential fraud risks. These checks should provide protection from the threat of fraud or you becoming inadvertently involved in fraudulent activity.
As a general rule “FITTED” checks should normally focus on:
Paragraph 16.10 of this notice provides more examples.
It is expected that your due diligence procedures will provide effective control over the risks of fraud within your supply chains. Where your checks indicated real concerns, we would normally expect aspects of your supply chain to be changed to address this, e.g. the supplier or the destination of the goods. However, a decision of whether or not to trade with another party remains a commercial decision for your business to take.
If your checks lead you to suspect duty fraud you should also inform our Customs Hotline. You can contact them by calling 0800 595 000 or by completing our secure online form, which is available at www.hmrc.gov.uk/reportingfraud/online.htm
You can also notify them by post at:
HM Revenue & Customs
Yes. As part of our enforcement and general audit programmes, we will consider whether or not the steps you have taken to embed anti-fraud due diligence into your trading activity are sufficient and timely to address fraud risks in your supply chains. We will aim to establish whether you have objectively assessed the risks in your supply chain, and you must be able to demonstrate that you have put in place reasonable and proportionate checks and effective procedures to respond to fraud risks when they arise.
If your due diligence procedures are considered insufficient to address fraud risks, we will carefully consider the facts of the case before taking further action, but where appropriate we will seek to support you to strengthen your procedures.
In more serious cases such as a failure to consider the risks, undertake due diligence checks or respond to clear indications of fraud, we will apply appropriate and proportionate sanctions. For serious non compliance, such as ignoring warnings or knowingly entering into high risk transactions, we may revoke excise approvals and licences.
You are also reminded that handling goods liable to excise duty held outside a duty suspension arrangement may cause you to become liable for any excise duty due on those goods and an excise wrongdoing penalty. Any of those goods you currently hold could also be liable to forfeiture.
You should be concerned about a prospective transaction where you identify one or more of the following indicators in both suppliers and customers, the presence of which may lead you to make further inquiries. Please note, this list is not exhaustive:
Financial health of the company you intend trading with
Identity of the business
Terms of contract, payment and credit agreements
The goods are to be received from an unusual source or supply route, for example, UK produced goods are sourced from another country and directly compete with those from a more direct supply route
Existence or Provenance of goods
Terms of any contracts, payments and credit agreements
Existence or provenance
Administrative Reference Code. This is the validation number for a movement of duty-suspended excise goods within the EU. It is obtained by raising an eAD on EMCS, and must then accompany the movement.
An offer by Customs not to pursue criminal action in return for a penalty payment made by the person who committed the offence.
A stamp attached to spirits, with an abv of 30 per cent or above in bottle sizes of 35cl or above to indicate that UK duty has been or will be paid.
electronic Administrative Document. This is the electronic message that is raised on EMCS to record and validate a duty-suspended movement of excise goods within the EU.
Excise Movement and Control System. This is an electronic system for authorising, validating, recording and monitoring all movements of duty-suspended excise goods within the EU.
For the purpose of this notice, an indirect tax on certain goods, for example, beer, wine, made-wine, cider, perry, spirits, mineral oil, cigarettes and other tobacco products. Both UK-produced and imported goods are subject to excise duty.
Goods which are liable to Excise Duty.
In the context of this notice, a mark carried on packets of cigarettes and hand-rolling tobacco indicating that tobacco products duty has been paid.
For the purposes of this notice, a Registered Consignee is a trader whose approval to import duty-suspended excise goods is not limited to a single consignment. They are also able to pay the UK duty using deferment arrangements. They may not hold or dispatch excise goods in duty-suspension.
In the context of this notice, anyone carrying on a trade or business concerned with the buying, selling, importing, exporting, dealing in, or handling, financing or facilitation of excise goods, and the financing or facilitation of any such transactions or activities. For full definition see the 'Customs and Excise Management Act 1979', section 1 'Interpretation').
In the context of this notice a person, based in another EU Member State, who is authorised in that Member State to supply excise goods in duty-suspension.
The short title for the Integrated Tariff of the United Kingdom which sets out information about:
Temporary Consignment Authorisation. This is an authorisation number that is required for TRC movements. A separate TCA number is needed for every movement carried out by a TRC.
Temporary Registered Consignees are excise traders that are authorised to receive duty-suspended excise goods from other EU Member States on a consignment by consignment basis. They may not hold or dispatch excise goods in duty-suspension.
Value Added Tax is charged on the importation of goods at the same time as if the goods had been supplied in the UK. It is chargeable in addition to customs/excise duties – calculated on a value which includes such charges.
Your Charter explains what you can expect from us and what we expect from you. For more information go to www.gov.uk/hmrc/your-charter
If you have any comments or suggestions to make about this notice, please write to:
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