|HMRC Reference:Notice 163 (May 2014)||View Change History|
This notice cancels and replaces Notice 163 Wine Production (March 2013). Details of any changes to the previous version can be found in paragraph 1.2 of this notice.
Paragraphs 5.12, 6.2, 6.3, 11.3, 11.8, 11.12, 13.7, 13.8 and 13.13 of this notice explain record keeping requirements and spoilt wine conditions, have the force of law under the Revenue Traders (Accounts and Records) Regulations 1992 and the Wine and made-wine Regulations 1989. These paragraphs are indicated by being placed in a box.
The following requirement has the force of law
You must record the date of any change of status of any wine from duty suspended to duty paid and the product(s).
This notice explains the effects of the law and regulations covering the production, storage and accounting for duty on wine and made-wine. For the definition of wine and made-wine, see paragraph 2.1.
Where we say 'wine' in this notice, we include made-wine, except where specifically stated.
As this notice contains various technical terms, you may find the glossary helpful - see section 30.
The effects of the law and regulations covering the handling of wine in Excise warehouses are explained in Notice 196 Excise goods: authorisation of warehouse keepers, approval of premises and registration of owners and Notice 197 Excise goods: receipt into and removal from an excise warehouse of excise goods.
The notice has been updated to inform you of the following:
It is primarily intended for commercial wine producers. If you produce wine solely for your own personal consumption and do not sell or receive a consideration for any of it, this notice does not apply to you.
You will find the main legal provisions relating to the production, holding and movement of wine in:
Other legislation may also apply to wine producers. This includes:
You can access details or get copies of the Acts or Regulations from the Office of Public Sector Information.
Sometimes the law says that detailed rules on a particular matter may be set out in a notice published by HM Revenue & Customs (HMRC). Paragraphs 5.12, 6.2, 6.3, 11.3, 11.8, 11.12, 13.7, 13.8 and 13.13 have legal force and are indicated by being placed in a box.
If you need any advice, or any of the forms mentioned in this notice, you should contact our Helpline, on Tel 0300 200 3700.
In the Alcoholic Liquor Duties Act 1979, ‘wine’ is defined as ‘any liquor which is of a strength exceeding 1.2 per cent and which is obtained from the alcoholic fermentation of fresh grapes or of the must of fresh grapes, whether or not the liquor is fortified with spirits or flavoured with aromatic extracts’.
‘Made-wine’ means ‘any liquor which is of a strength exceeding 1.2 per cent and which is obtained from the alcoholic fermentation of any substance or by mixing a liquor so obtained or derived from a liquor so obtained with any other liquor or substance but does not include wine, beer, black beer, spirits or cider’.
Made-wine, for example, will include products similar to wine but not made from fresh grape and some ‘ready to drink’ products (RTDs) that are made using fermented alcohol - see section 25.
If you produce wine for sale you must be licensed with us for duty purposes, that is, you must hold a wine producer’s licence (see section 3).
You must exercise control over your wine making activities. Unless you do not need to be licensed (see paragraph 3.2), you must:
We will make visits to make sure duty is being correctly assessed and accounted for on all wine leaving licensed premises. Assurance is based on auditing your commercial, accounting and management control systems and on physical checks. We will carry out physical checks on production, stock and movements of wine in duty suspension.
When we intend to carry out our checks we will normally make a prior appointment. Occasionally, we may make visits without appointment but the attending officer will give the reason for the unannounced visit. At any reasonable time you must permit our officers access to any area of the licensed premises. You must make sure that all your security personnel are aware that we may visit without appointment. All of our officers carry identification and will show this when they arrive.
If you fail to comply with the law and regulations relating to this notice (see paragraph 1.4) or do not account for the correct amount of Excise duty, we may take action including the issue of assessments and/or civil penalties. These are explained in Notice 208 Excise assessments and Notice 209 Civil Penalties: Fixed, geared and daily. You may also be liable to penalties if you fail to apply to register with HMRC at the right time or if your monthly duty return is inaccurate - see paragraphs 3.12 and 7.7. In many cases you will have the right to appeal. Full details of the appeals procedure are set out in section 29 of this notice.
Yes. If you produce or intend to produce wine for sale, you must hold an Excise licence. For the purpose of this notice, this particular type of Excise licence is known as a wine producer’s licence.
You must also be licensed if you render wine sparkling, unless you intend to carry out this process in an Excise warehouse. You may produce wine and render wine sparkling on the same licensed premises.
You may only produce wine without an Excise licence if the wine is not for sale.
Yes. If you do not intend to sell the wine produced for you by a licensed producer, you can receive it without payment of duty, provided you give the licensed producer a written declaration that the wine will not be sold.
If you intend to lease vines you should observe the conditions set out in section 16.
If you are a commercial grower, or lessee, and you intend to sell the wine produced by a licensed producer on your behalf, the licensed producer must pay the duty on the wine when it leaves their licensed premises. Alternatively we will permit you to receive your wine from the licensed producer, without them having paid any duty on the wine, provided you:
Our Helpline, on Tel 0300 200 3700 can provide further information about these arrangements.
To obtain an Excise licence, simply complete form L5 Application for a licence to carry on an excise trade (see section 28) and send it along with entry of your premises (see paragraph 3.6) to the:
HM Revenue & Customs
Registration Unit (Alcohol and Tobacco)
21 India Street
Phone: 03000 516 226/228
If you have an enquiry about your application once it has been sent, you may contact the National Registration Unit (NRU). For any enquiries before this stage, you should contact our Helpline, on Tel 0300 200 3700.
A separate licence is required for each set of premises at which you intend to make wine. A licence will be issued in the name of the proper legal entity (sole proprietor, partnership, limited company, and so on.). However, you may choose to submit only one duty return for all licensed premises owned by the same legal entity - see section 7.
Note: all wine producers applying for a licence for the first time are required to arrange for a guarantee to cover any duty due on wine, removed from your licensed premises to the UK home market, until it is paid to HMRC - see section 4.
As a licensed wine producer you are permitted to:
You are not allowed to receive in duty suspense:
If you wish to receive spirits for fortification or beer, cider or imported wine for use in the production of wine or made-wine, you must apply for approval as a Trade Facility Warehouse - see section 25.
As part of your licence application, you must make entry of the premises you intend to use.
An entry of premises is a plan showing the position and description of each vessel or other piece of plant you intend to use in the production of wine. It should include any identifying marks on your vessels or plant and the full address of the premises.
A commercial grower or lessee who intends to take out an Excise licence (see paragraph 3.3), must provide a plan of where the wine will be stored and the full address of the premises.
The plan should be submitted to the NRU with your application.
You are not required to make an Excise entry of your premises if the wine you produce is not for sale.
Note: retail premises, within or attached to your licensed premises, is not considered part of the licensed premises. Any wine to the retail premises will have to be duty paid on removal from the licensed premises.
We may wish to discuss your application with you. Once any queries on your application are settled we will send you an Excise licence. You should keep the licence on the premises to which it refers as we may wish to see it from time to time.
Your licence will last until production has ceased. You must notify us in writing:
After production has stopped and your wine is finished and packaged (see paragraph 22.2) you will have to pay the duty due on:
Alternatively, we may allow you to destroy the wine stock in hand as if it were unfit for sale. If you wish to do this, see paragraph 11.7. However, duty must still be paid on any unexplained shortages.
When we are satisfied that you have accounted for all duties and/or destroyed your stock of wine, we will cancel your licence and your entry of the premises.
You may use your premises for other Excise trades (for example, a compounder of spirits) provided you:
You must write to the NRU (see paragraph 3.4 for address and phone number) giving details of any changes that may affect your licence, including ceasing production - see paragraph 3.9.
The following changes would require a new application (form L5 Application for a licence to carry on an excise trade) and entry of premises to be submitted:
The following other changes must also be notified in writing:
The production of wine:
is an offence for which there is a penalty. You can avoid a penalty by applying to be licensed at the correct time. If you have not applied for a licence, you must notify us as soon as possible. We will be able to reduce the penalty, in many cases to zero.
For further information on penalties, see link below.
You have the right to appeal if we impose such a penalty. For further information on appeals, see section 29 and link below.
For the purpose of this notice financial security is a guarantee given by an approved guarantor who undertakes to pay money to us in the event of an irregularity covered by the guarantee. Guarantees are the only form of security acceptable to us.
We require a guarantee to:
We may require a guarantee for:
(b) movement of wine within the UK.
We also require a guarantee to:
(c) safeguard the duty due on wine that has been produced in the UK and has passed the duty point but upon which duty has not been paid to HMRC - unless you are eligible to apply for authorisation to make payments without providing a guarantee under the Excise Payment Security system (EPSS).
If a guarantee is required under 4.2 (a), (b) or (c) above, you must apply in writing to:
Once we have agreed you guarantee amount, we will issue the draft wording to your guarantor for completion of the guarantee form and return to the NRU. If satisfied, we will accept the guarantee and return a signed copy to the guarantor. You may use the guarantee when you have confirmed that your guarantor has received the signed acceptance copy from us.
A guarantee is required to cover any duty due on wine, removed from your licensed premises to the UK home market, until it is paid to HMRC (no later than the 15th day of the month following the accounting period). This will apply to all wine producers applying to be licensed for the first time - see paragraphs 4.4.3 and 4.4.4. However, you may be eligible to apply for authorisation to make payments without providing a guarantee under EPSS - see paragraphs 4.4.1 and 4.4.2.
Note: if you are not eligible to apply for EPSS and you wish to avoid having to provide a guarantee then, alternatively, you can pay your duty liability up front. The payment is an annual one and you must pay a year's estimated duty in advance. You will need to contact the Central Collection Unit (TAPS) on Tel 01702 366558 to make the necessary arrangements.
You must complete an application form EPSS(B) - Excise Payment Security System (EPSS): application for authorisation to make payments of excise duties without a guarantee which can be found on our website, go to hmrc.gov.uk or obtained from our Helpline on Tel 0300 200 3700.
You must send the completed application form to:
EPSS Authorisation Team
8 Ruby Place
To be eligible to apply for EPSS, you must have been VAT registered for three years or more. If so, you will be assessed against the full EPSS authorisation criteria which include checks on you VAT, excise and debt compliance history.
If you are trading beneath the VAT registration threshold, you are eligible to apply for EPSS if you have been registered in an excise payment regime for three years or more. In this case, you will not be assessed against the full EPSS eligibility criteria but instead checks will be made on your excise return, payment and debt compliance history.
Your guarantor must complete form C1201 TAPS - Guarantee for payment of sums due to the Commissioners of HM Revenue & Customs which can be found on our website, go to hmrc.gov.uk or obtained from our Helpline on Tel 0300 200 3700. You must send the completed form to:
HM Revenue & Customs
Central Collection Unit (TAPS)
21 Victoria Avenue
Your guarantee amount should be set at a maximum amount that is sufficient to cover all the duty likely to be due, on wine removed from your licensed premises to the UK home market, in any given accounting period.
Note: licensed wine producers who have premises that are also approved as an Excise warehouse, will be required to have a separate deferment guarantee to cover any duty due on removals from the Excise warehouse - unless they are eligible to apply for authorisation to make payments without providing a guarantee.
You will not be authorised for duty deferment unless you have a guarantee or are authorised under EPSS.
If you fail to provide a guarantee, you will be required to pay the duty due when the duty point occurs, that is, as soon as you despatch wine to home use from your licensed premises, rather than delaying payment of the duty until the 15th day of the following month.
Only companies approved by us may act as guarantors. Most banks and insurance companies have this approval, but if you want to check a particular company please contact the NRU (see paragraph 4.3).
The cost of the guarantee is a commercial arrangement between you and the guarantor.
The duty rates for wine are structured in bands according to the strength of the product and whether it is sparkling or not. They are stated as amounts per hectolitre (100 litres).
No. There are six duty categories for wine and made-wine:
Any wines exceeding 22.0 per cent ABV are dutied as spirits.
Wine becomes liable to duty once it has been produced or when it is imported into the UK - see paragraph 5.7.
Wine is liable to the sparkling rates of duty if it has an actual alcoholic strength by volume exceeding 5.5 per cent but not exceeding 15 per cent ABV and:
Wine is deemed to be made or produced at the point during fermentation when the strength of the product first exceeds 1.2 per cent ABV.
No duty is chargeable in the UK on wine that does not exceed 1.2 per cent ABV. However, you must record details of the manufacturing operations in your production records. The wine may be moved using your normal commercial despatch documents.
If you intend to produce low strength wine by removal of alcohol, you should first consult our Helpline, on Tel 0300 200 3700 who will advise you on any revenue requirements that may affect the process you intend to employ.
Paragraph 5.3 explains when wine becomes liable to duty, but duty only becomes payable when the wine passes the duty point, that is when it leaves duty suspension. Duty ceases to be suspended when:
(a) the wine leaves licensed premises, unless it is delivered:
(b) the wine is constructively removed (see paragraph 5.12)
(c) the wine is lost
(d) the wine is irregularly diverted
(e) you are no longer licensed, and
(f) the premises on which you are holding the wine cease to be licensed premises.
In addition, wine is considered to have left duty suspension when there is a failure to comply with any requirements relating to the duty suspension arrangements.
The person holding the wine at the duty point is liable for the duty.
Normally, the duty should be paid by the 15th day following the end of your ‘accounting period’ in which the wine passed the duty point - see section 7 (but see also paragraphs 4.2(d) and 4.4.4).
Unless HMRC has permitted the use of an alternative method of calculation that does not disadvantage the revenue, you must work out each constituent stage of the duty calculation process to a minimum of four decimal places.
In order to complete the EX 606 wine/made wine duty return declaration, you must round down the quantity of wine to the nearest whole litre.
See the following examples:
(a) 407 × 3 litre container of still wine × 11% ABV
407 × 3 = 1221 litres in total
1221 × duty rate of *£2.5339 = £3,093.8919, rounded down to £3,093.89
*this is the hectolitre duty rate of £253.39 converted to litres for the purposes of completing the duty return.
(b) 137 cases of still wine, each containing 12 × 750 ml × 13% ABV
12 × 750ml = 9 litres per case
9 × 137 = 1233 litres in total
1233 × duty rate of £2.5339 = £3,124.2987, rounded down to £3,124.29
(c) 1246 cases of still wine, each containing 12 × 750 ml × 11% ABV
12 × 750ml = 9 litres per case
9 × 1246 = 11214 litres in total
11214 × duty rate of £2.5339 = £28,415.154, rounded down to £28,415.15
(d) 245 cases of sparkling wine, each containing 12 × 750ml × 12% ABV
12 × 750ml = 9 litres per case
9 × 245 = 2205 litres in total
2205 × duty rate of £3.2456 = £7,156.548 rounded down to £7,156.54
If you fail to pay the duty by the due date, you will be liable to a civil penalty of 5 per cent of the duty or £250 - whichever is greater. In addition, further penalties may be incurred for each day that you fail to pay the duty. Details of civil penalties are contained in Notice 209 Civil Penalties: Fixed, geared and daily.
At any time after the due date for payment, our officer may take action to take possession of all wine, materials and equipment used in making wine or connected with your trade as a wine producer, which are either owned by you or are in your possession and auction them to recover duty due plus pay any Taking Control of Goods fees. See also paragraph 2.7 of this notice.
If you consider that it would help your business to account for duty on any duty suspended wine in advance of delivery from licensed premises, you may do so. This is known as ‘constructive removal’ and allows the licensed holder of the wine to change the status of the wine held on licensed premises from duty suspended to duty paid, on payment of the proper duty, without the need to remove the wine from those premises. The duty should be paid in the normal manner (see section 7) by the 15th of the month following the calendar month in which the wine was constructively removed.
The following requirements have the force of law and are made under regulation 12A (3) of the Wine and Made-wine Regulations 1989.
You must record:
Note - when wine has been constructively removed, it cannot be returned to duty suspension.
You are responsible for declaring the correct amount of duty from the effective date of change. When the duty rate changes, we will notify you of the new rates, the effective date and the time of the change. Following the budget, you can find details of the duty rate changes on our website, go to hmrc.gov.uk or you can contact our Helpline, on Tel 0300 200 3700.
When the rate changes during an accounting period, you must complete two separate returns for the period: one at the old rates and one at the new rates. You should mark the returns pre or post budget as appropriate.
We require you to maintain and produce for examination your record of your business activities. We may examine:
The following requirements have the force of law and are made under regulation 6 of the Revenue Trader (Accounts and Records) Regulations 1992.
You must keep records which show:
- produced- received
Generally your normal business records will contain or can be modified to contain the information we require.
You must keep a duty account. A duty account is a summary of the wine duty due in each accounting period.
The following requirements have the force of law and are made under regulation 5(1) of the Revenue Trader (Accounts and Records) Regulations 1992.
You must keep an account which contains the following information:
You must normally keep your business records for six years. If, however, this causes problems ask our Helpline, on Tel 0300 200 3700 if you can keep some of your records for a shorter period. You must get our agreement before destroying any of your business records that are less than six years old.
You can keep your records on any form of storage technology, provided that copies can be easily produced and that there are adequate facilities for allowing our officer to view them when required.
You should advise our Helpline, on Tel 0300 200 3700 before you transfer records. You may be required to operate the old and new systems side by side for a limited period of time. We may refuse or withdraw approval if any requirements are not met.
If you keep your records on a computer, we will require access to it so that we can check its operation and the information stored. We may ask for help from you or anyone else having charge of, or otherwise concerned with, the operation of the computer or its software.
If a computer bureau is employed, you are responsible for arranging for the bureau to make your records available to us when we wish to see them. Normally this will be at your principal place of business.
At the end of each ‘accounting period’, that is:
you must total up all the wine sent out from your premises during that period, work out the duty due, complete a duty account and transfer the appropriate totals to a monthly return - EX606 (Wine/Made-Wine/Cider/Perry Return).
EX606s are routinely sent out to all licensed wine producers. If you fail to receive a return, you should contact the Central Collection Unit - see paragraph 7.4.
You must fill in your monthly duty return, EX606/606A, with:
Unless we have given you specific authority, you may only make deductions from your duty liability as outlined in this notice.
You will find that the EX606/606A has full instructions on the completion of the return.
Returns must be completed in ink and any changes must be initialled and dated by the person who signs the declaration.
If you fail to submit a return on time you will be liable to penalties - see paragraph 2.7. We have the authority to estimate the duty which would have been due and to pursue that debt through the civil courts - see paragraph 5.11. If you foresee any problems, you should immediately contact the:
Phone: 01702 366558
The proprietor, a partner, the company secretary or a director of the company should sign the declaration on the return. If this is not possible, you can, as one of the above-mentioned persons, authorise someone to sign the return on your behalf.
Yes. If you have more than one licensed premises owned by the same legal entity, you may, on request, combine the duty liability for each in the one duty return. However, an individual duty summary should be maintained for each site and consolidated in a duty account by the site submitting the return.
If you are approved to produce both cider and wine/made-wine, or if you produce either products on more than one set of premises, you may, as above, combine the duty liability for both products and /or premises in the one duty return.
You can avoid a penalty by checking that you have given complete and accurate information in your duty return. You may be liable to a penalty if your return is inaccurate and, as a result, you do not pay enough duty or if you do not notify us that a duty assessment we have sent you is too low. If you are aware you have made a mistake on your return, you must notify us as soon as possible. We will be able to reduce the penalty, in many cases to zero.
If you deliberately make a false duty return, you may face prosecution for the offence and incur a heavy penalty.
For further information on penalties, see link at paragraph 3.12.
You have the right to appeal if we impose such a penalty. For further information on appeals, see section 29 and the link at paragraph 3.12.
If you discover underdeclarations relating to previous accounting periods which total less than £1,000 duty, you must enter the amounts against lines 23 to 32 on the reverse of the EX606 as appropriate, and carry the total forward to lines 35 and 17 for the current accounting period.
Similarly, if you discover overdeclarations totalling less than £1,000 duty, you must enter the amounts against lines 23 to 32 on the reverse of the EX606 as appropriate and carry the total to lines 36 and 18 for the current accounting period. You do not have to send written advice, but details of the errors must be retained for inspection.
If however, the total underdeclaration and/or total overdeclaration is £1,000 duty or more, you must, in addition to making the adjustments outlined above, send full details in writing to the Central Collection Unit (TAPS) (see paragraph 7.4 for address) with the return.
You must submit your return and payment so that they arrive not later than the 15th day of the month following the ‘accounting period.’ When the 15th day falls at a weekend or on a public holiday the return and payment must be received by the previous working day.
HMRC accepts payment by a range of methods but recommends you pay electronically using one of the following options:
For further information and help, go to Paying HMRC.
Note: a cap was introduced on 31 May 2012 by the Board of Bacs Payments Schemes Ltd (Bacs) which limits the maximum value of any single Bacs transaction. If you have a payment to make by Bacs Direct Credit which exceeds £20 million, you need to make arrangements with your own bank to make sure payment reaches HMRC on the due date, by an alternative payment method such as CHAPS.
All licensed wine producers must send their returns to the Central Collection Unit.
Even if you make no deliveries of wine to home-use during an accounting period, you must still send us an EX606 return form. Insert ‘nil’ in the quantities box, sign the return and send it to us in the normal way.
We can require duty to be accounted for on the actual quantity of wine in each container as it passes the duty point. However, most packagers do not measure the quantity in each container as they use the ‘average system’ of quantity control.
Under this arrangement, which is used widely throughout the European Union, the average contents of packages must not be less than the declared contents (that is, that marked on the can or bottle or label). Within specified limits the actual contents of any particular container may be more or less than the declared contents.
Packagers using the average system conform to a Weights and Measures Code of Practice which has been agreed with Trading Standards. Packagers are obliged to monitor and record the actual quantity of wine by sampling a proportion of packages to make sure they fulfil the Code’s requirement.
Small pack refers to containers of ten litres capacity and less. When sending out wine for UK consumption from your licensed premises, you should normally charge duty on the quantity declared on the label of the can or bottle.
Evidence of compliance with Weights and Measures legislation will be sufficient to accept the labelled contents as the duty base, unless there are grounds for believing that deliberate duty avoidance is involved.
You are required to take samples as follows:
Subject to compliance with these requirements, the average of the samples taken for the purpose of complying with average contents rules will be treated as the quantity of wine in a container.
‘Due diligence’ is the term used for the measures you have in place to monitor the filling process and the actions you take to prevent and/or rectify any instances of excessive over or under filling found.
You should monitor the filling process to make sure that the quantity put into the package does not regularly excessively exceed the amount declared on the label. You should record these checks and provide an adequate audit trail to satisfy our officer that ‘due diligence’ is being exercised.
Where there is evidence of consistent excessive overfilling, additional duty will be due.
Duty becomes payable at the end of the accounting period in which a container of wine is delivered to home-use. That is, when it passes the duty point.
Where you have incurred an additional duty liability as a result of overfilling, the additional duty should be paid in the relevant accounting period when wine is supplied to home use from your licensed premises or from licensed premises or Excise warehouses owned or operated by your company.
If you fail to properly record and/or pay the additional duty due on excess volume that you have delivered to home-use, we will assess you for the additional duty due. If you cannot produce accurate records upon which the additional amount of duty can be readily established, including quantities delivered to home-use, we will use ‘best judgement’.
In the case of overfilled containers of wine supplied in duty suspension to third parties, you should record details of these deliveries separately in your records. The law requires that the person holding the goods at the time of their delivery to home-use, is liable for the duty, including that on the volume in excess of the declared quantity. However, if we are satisfied that the third party was unaware that the container had been overfilled and that the third party is entirely independent of you, we will not normally seek to recover the additional duty due. In deciding whether or not to pursue the additional duty we will take into account the following factors:
For small pack, we will normally require you to assess the monitoring results separately for each product. However, if in exceptional circumstances, for example, where a small amount of a seasonal product is packaged and separate monitoring would produce an inequitable outcome, we will consider requests for combining the monitoring results for a number of products.
Your normal commercial records should be acceptable provided that they contain sufficient information for calculating duty. You will also need to enter the total volume of wine delivered during the accounting period on the EX606 duty return - see section 7.
Apart from normal commercial considerations, you must record the volume of wine delivered because:
The dutiable quantity of wine should be the actual contents found by dipping, metering or weighing.
International obligations require that we cannot treat imports any less favourably than domestic product. As importers will not necessarily be aware of the actual contents of containers we will apply the same principle set out in paragraph 8.6.
Alcoholic strength is the percentage of ABV in the wine at 20°Centigrade. For duty purposes, this should be truncated to one decimal place, for example, 5.59 per cent ABV becomes 5.5 per cent ABV.
You may use any method you wish to measure the strength of wine as long as it produces results that agree with those that would be achieved using the distillation analysis method (also known as the reference method) described in section 26. This is particularly important if the strength of your wine is close to the top of its duty banding.
If you do not use distillation analysis to measure your ABV, you must be prepared to explain your method and show that your results agree with those that would have been achieved had it been used.
For any methods not based on laboratory analysis, an independent analyst must test the ABV of each of your products, at least annually, to confirm consistency with calculated results. The results of the independent analyses must be held in your business records.
For duty purposes, the alcoholic strength of wine is the actual strength when it passes the duty point.
However, if you comply with certain conditions, we will accept for duty purposes the declared strength.
If you wish to use the declared strength for duty purposes, you must be able to demonstrate that you have exercised due diligence in the control of your process to make sure that, on average, the actual ABV of each finished product equates to that which you are declaring.
You must continuously monitor and record your ABV results, which should normally fall randomly on either side of the target strength. The average of your results should equate closely with the target which must be the declared strength.
It is recognized that the ABV of the same product may occasionally vary, but provided appropriate action is taken quickly to return the strength of the wine to within its normal specification, due diligence will have been demonstrated. You must keep records of action taken to maintain product strength within control limits.
You must establish the strength of each discrete batch for each of your products. Where wine from one batch is packaged into different container types, for example, boxes and bottles, you may combine the results.
If you can demonstrate to us that, based on available information and experience, due care was taken when deciding target ABVs for new and/or infrequently produced qualities (and that all decisions, actions and so on. were properly recorded), we will accept the declared strength for duty purposes.
We will examine your results and your record of actions taken. Where the target strength coincides with the limit of a duty band, and where the results are consistently above target, we will ask you to demonstrate that action was taken to bring the process back into control or to change the declared ABV as soon as the problem was identified. If you have failed to take such action, an assessment will be raised for the additional duty due.
Yes, because it is likely that the wine will subsequently be delivered on payment of duty, the same arrangements must apply for all wine you produce.
As it is the responsibility of the person holding the wine at the duty point to account for the duty, if you despatch packages in duty suspension on which the strength is understated, you must inform the consignee accordingly.
We may take samples of wine which will be analysed using the reference method described in section 26. The analysis result will establish the actual dutiable strength of the wine for legal purposes.
Wine received from outside the EU must be accompanied by a VI form which states the actual strength of the wine. This strength may differ from that which is declared on the label. In these instances, duty must be paid on the actual strength of the product.
Further information on VI forms can be found in paragraph 24.2.
Natural losses and wastage and other legitimate causes for lost product are not liable to duty provided we are satisfied that they are genuine losses that are down to the production process.
There is also provision for duty relief on:
As a licensed wine producer, you are responsible for the control of wine in your licensed premises. You must have the necessary systems in place to control and safeguard your stocks. You must examine critically all losses and deficiencies.
No, providing we are satisfied that the wine has been lost in licensed premises and has not been consumed.
You need to keep records of production and processing and these should indicate how much wine you lose during routine operations. For example, the losses you normally incur during packaging operations.
The following requirements have the force of law and are made under regulation 6 of the Revenue Trader (Accounts and Records) Regulations 1992.
For accidental losses you must record:
If wine cannot be accounted for after the start of production, and there is no acceptable explanation, you are liable for duty on the missing wine. It is therefore in your own interest to keep proper records of all losses.
Yes, if you hold documentary evidence demonstrating that stock losses and surpluses are related. Your records must contain a clear audit trail to justify any adjustments to stock records following the discovery of errors. You must justify each offset. We do not allow you to accumulate losses and surpluses from various sources and then offset gross totals.
Normally there is no duty relief in respect of wine which is lost after it has passed the duty point.
No, providing we are satisfied that the wine has been unintentionally spoilt, contaminated or otherwise rendered unfit for consumption in the licensed production premises and has not been consumed. You may ‘write off’ the quantities concerned after you have recorded the information in your records and destroyed any spoilt product.
We may examine your records as part of our audit process. If we are not satisfied with your explanation and supporting evidence we will require you to pay the duty on the quantity previously ‘written off’.
Remember that other legislation may apply when you destroy spoilt wine - for example, legislation on pollution.
The following requirements have the force of law and are made under regulation 6 of the Revenue Trader (Accounts and Records) Regulations 1992.
You must record:
Yes, as long as you follow the procedures in paragraphs 11.10 to 11.12.
You must give us at least five working days notice if you wish to destroy duty suspended wine outside your licensed premises. You must give details of the proposed method of destruction. You must satisfy us that your proposed process will destroy the intrinsic nature of the wine.
Working days excludes Saturdays, Sundays and public holidays.
You must tell us:
Yes. If the wine is removed from licensed premises to be destroyed at a specialist destruction site, the conditions below apply.
The following conditions have the force of law and are made under regulation 12(e) of the Wine and Made-wine Regulations 1989:
- an Authorised Company Representative (ACR) of the wine producer, or
You may re-ferment any wine or residues which are:
Enter the quantity of wine involved in your production records. Make sure your records are accurately and promptly updated with the details so that we can verify the quantities used in this manner.
You may be eligible to claim a refund of the Excise duty paid on wine which has been returned to your licensed premises for reprocessing - see section 13.
We will not require you to pay duty on any wine which becomes accidentally lost or spoilt on your licensed premises - for further details, see section 11.
Wine which you have removed from your licensed premises on payment of duty may later become unfit for use. You may claim a refund of the Excise duty paid on any wine returned to your premises provided the wine:
The following are excluded:
Note: if any wine becomes spoilt more than three years after the duty was paid on that wine, you cannot claim relief.
No, the spoilt wine may be either destroyed or reprocessed.
Reprocessing includes the following operations:
You must keep a spoilt wine record containing the particulars shown in paragraph 13.13.
Subject to any notice of destruction being required (see paragraphs 13.9 and 13.10), you may destroy spoilt wine at a time of your own choosing. However, entitlement to reclaim duty on spoilt wine will depend on the conditions below being met.
The following conditions have the force of law and are made under regulation 25(2) of the Wine and Made-wine Regulations 1989:
The following conditions have the force of law and are made under regulation 25(2) of the Wine and Made-wine Regulations 1989:
(a) Destructions in pub cellar
Note: the requirements of other regulatory authorities must be observed.
(b) Destructions at specialist destruction sites
- an ACR of the wine producer, or
(c) Spoilt wine relief will depend upon there being evidence of a full credit of the duty paid value, or replacement of the goods to your customer (or owner of the goods at the time they became spoilt).
Our officer will advise you if you need to give notice (see paragraph 13.10), otherwise you can destroy the wine whenever you wish.
If notice is required, you must give us at least:
You must give details of the proposed method of destruction.
Working days excludes Saturdays, Sundays and public holidays.
You must destroy wine in a way acceptable to us and which makes it unsaleable as a beverage.
At the end of the accounting period, total the entries in your spoilt wine record of all wine destroyed or reprocessed and transfer the total to your wine duty account. When you submit your next monthly return, deduct the duty you are reclaiming by entering it against lines 23 to 32 on the reverse of the EX606 as appropriate and carry the total to line 36.
Remember, when auditing claims we examine your business records and any supporting evidence. If we are not satisfied with your explanation and supporting evidence, we will require you to repay the duty you claimed.
The following requirements have the force of law and are made under regulation 26(1)(d) of the Wine and Made-wine Regulations 1989.
When wine is either returned to the licensed premises for destruction or destroyed remotely, you must enter the following particulars in the destruction section of your spoilt wine record:
Unless we allow a longer period, your spoilt wine record must be completed within one hour of reprocessing taking place.
At the end of the accounting period, total the entries in the spoilt wine record of all destroyed and reprocessed wine and transfer the total to your wine duty account for claiming relief on your wine duty return.
You may take these for analysis and organoleptic appreciation (but not consumption) within your licensed premises provided you enter the quantities and reasons for removal in your samples records.
The samples should be used up in tests, destroyed or returned to process when you have finished with them.
You may take these provided you enter the quantities and reasons for removal from your licensed premises in your samples records. Trade samples must:
There must be a genuine trade purpose for supplying the samples, for example, for analysis and tests to be carried out on the wine before purchase.
Wine used for promotions and for tasting at, for example, UK trade fairs, shows, exhibitions and supermarkets must be duty-paid.
If samples are not supplied free of charge then you must pay duty on them.
For removal of samples to other Member States, see requirements in Notice 197 Excise goods: receipt into and removal from an excise warehouse of excise goods.
You may take duty-paid samples for any business purpose. There is no restriction on size or on the number you take. You should pay duty in the normal manner and record details in your business records.
If you are a grower or beekeeper who produces, or has produced for you, wine from your own fruit or honey, you may deliver from your premises duty-free approved quantities of wine for your own domestic consumption, or for drinking free of charge by your employees.
The term grower refers to a person who owns or leases vines for which he is responsible for the cultivation, nurturing and harvesting thereof. This need not be done personally, the grower may contract others to carry out the work for him, but he is responsible for the supervision of any contracted work.
The term domestic consumption means consumption or use by:
The entitlement is based on the quantity of wine produced in the preceding calendar year (January to December) and must not exceed the actual quantity produced.
So, if no wine is produced in the preceding calendar year there is no entitlement to domestic consumption. No part of your entitlement can be carried forward from one year to the next.
The maximum quantity which may be delivered for domestic drinking free of duty in any calendar year from January to December is:
(a) 5.5 hectolitres, plus
(b) 10 per cent of the quantity above 5.5 hectolitres produced in the preceding calendar year.
The total of (a) plus (b) must not be more than 11 hectolitres. Should the wine produced in the preceding year be less than 5.5 hectolitres, the maximum entitlement for relief will be limited to that actually produced.
If you wish to claim this relief, you must record your domestic consumption calculation in your business records before you remove your entitlement. You will be liable to pay duty on any quantity over claimed.
See also section 16 about Vine leasing.
As long as:
you may regard the visitor as a guest and the drink consumed may be taken from your domestic consumption allowance.
Vine leasing is when the owner of a vineyard leases a number of vines (or rows of vines) to an individual or group of individuals in order that they (the lessees) may receive the wine produced from the grapes of their leased vines.
Yes, provided it is for their own domestic use and there are no commercial considerations such as sale promotion agreements and so on.
You may be asked by our officer to produce contracts or agreements for inspection.
*This need not be done personally, the lessee/grower may contract other to carry out the work for him, but he is responsible for the supervision of any contracted work.
The vineyard owner must:
Although the vineyard owner may make into wine the grapes from more than one lessee at the same time, each lessee must receive only that proportion of wine which relates to his grapes.
If any of these rules are not observed, the wine produced will be liable to Excise duty.
To summarise information from previous sections of this notice, duty must generally be paid on all removals from your licensed premises for the following purposes:
Duty must also be paid if:
Provided you comply with any conditions HMRC may impose, you may remove wine from your licensed premises without paying duty for the following purposes:
You may also remove wine without paying duty, if it is for your own consumption, as long as the wine is produced from ingredients that you have grown - see section 15.
You must record all removals in your business records.
Any shortage in removal or transit will be charged with duty if you cannot give us a satisfactory explanation.
You will need financial security to guarantee the duty on wine in duty suspension for intra-Community movements.
The guarantee must be:
In certain circumstances, further guarantees may be required for the holding and movement of wine within the UK.
For further information on financial guarantees - see section 4.
All intra UK movements of wine will need to be submitted through the Excise Movement and Control System (EMCS) unless they qualify for the simplified procedures, see paragraph 22.2. An electronic administrative document (eAD) will have to be raised on EMCS before the movement can start. EMCS automatically allocates an Administrative Reference Code (ARC) that uniquely identifies the movement. The ARC will be on the printed copy of the eAD or should be noted on the commercial document and must travel with the goods. For further information on EMCS procedures, see Notice 197 Excise goods: receipt into and removal from an excise warehouse of excise goods.
If movements of wine are under simplified procedures and are as described in first bullet point of paragraph 22.2, your normal commercial despatch documents will be suitable if they contain all the following information:
If you have been paid or expect to be paid in cash for the supply of wine in duty suspension (or any service you provide in relation to wine in duty suspension), see section 27.
All intra EU movements of wine will need to be submitted through EMCS. Please find more information about this system in Notice 197 Excise goods: receipt into and removal from an excise warehouse of excise goods. You may remove either duty suspended or duty paid wine to other EU Member States, but the procedures and requirements are different.
If you are sending the wine direct to a non-registered trader then you must make sure that the duty is paid prior to the wine leaving your licensed premises. You may be able to reclaim the duty as drawback - see paragraph 18.4.
If the non-registered trader appoints an agent who is authorised to receive duty suspended excise goods, then duty does not need to be paid. However, the movement must be submitted through EMCS, with the agent shown as the consignee on the eAD.
If you are sending the wine to a private individual (rather than a trader) this is known as distance selling. You must make sure that the duty is paid prior to the wine leaving your licensed premises. You may be able to reclaim the duty as drawback - see paragraph 18.4. Additionally, you, as the seller, are responsible for ensuring that the duty is paid in the Member State of destination. Further information on distance selling can be found in Notice 197 Excise goods: receipt into and removal from an excise warehouse of excise goods.
Yes. Excise duty is due on wine which is, or will be, consumed in the UK. If you despatch UK duty paid wine to a licensed or non-licensed trader or private individual in another EU Member State, provided certain conditions are met, you may reclaim this duty under the Excise Duty drawback system. For further details, see Notice 207 Excise duty: drawback.
Drawback is a relief which provides for the repayment of Excise duty paid goods that have not and will not be consumed in the UK.
You must follow the procedures set out in Notice 197 when you are consigning duty suspended wine from the UK to non-EU countries either directly (know as 'direct exports') via a UK port or airport, or indirectly (known as 'indirect exports') by transiting another Member State.
All movements of wine must be submitted through EMCS and be covered by a movement guarantee (for indirect exports, this also includes the part of the journey from registered premises to the UK port or airport of departure).
You must complete an Export Declaration. Information and guidance is contained in the Tariff, Volume 3, parts 1 and 2.
Providing the correct procedures have been followed for exports (direct and indirect) to non-EU countries using EMCS, HMRC will send you a report of export via EMCS which discharges the movement. Where no report of export is given for any reason, HMRC will issue a report of rejected export (an IE839 message). On receipt of an IE839 message, you may be requested to provide alternative evidence of export as shown in Notice 197 Excise goods: receipt into and removal from an excise warehouse of excise goods.
For direct exports made using Local Clearance Procedures (LCP) from your premises (see paragraph 22.2), you should receive a 'departure message' from CHIEF (Customs Handling of Import and Export Freight) which should be retained as proof of export.
You may be liable for duty if you cannot produce evidence that wine removed from your premises has been exported from the UK or via another Member State.
Further information on reports of export, CHIEF departure messages and alternative evidence of export can be found in Notice 197 Excise goods: receipt into and removal from an excise warehouse of excise goods.
Yes. If you export duty paid wine to a non-EU country, provided certain conditions are met, you may reclaim the duty under the Excise Duty Drawback system. For further details, see Notice 207 Excise duty: drawback. To reclaim the duty, you must be able to produce evidence that the wine left the EU.
HMRC allows certain HM Ships to receive wine free from excise (and customs) duty. These removals are treated as exports, with the point of exportation being the delivery of the wine to the ship.
Movements to HM Ships are not considered to be in duty suspension and, therefore, do not move under EMCS procedures. You must complete commercial documentation for the removal of wine from your premises.
You may remove wine from your premises to be shipped as stores on board ships within the UK.
These movements are not considered to be in duty suspension but supplied under relief and, therefore, do not move under EMCS procedures.
The ship's master must seek prior authorisation from HMRC to load new stores onto his vessel. This authorisation is granted on form C945. You should ask to see a copy of this form and keep a photocopy for your records.
You must complete commercial documentation for the removal of wine from your premises. Section 14.5 of Notice 197 gives details of the information required on the document.
You must satisfy us that the wine has been shipped as stores.
You must have an official authorisation for the delivery of the wine. You must complete specific documentation for the removal of wine from your premises. You will find more information in Notice 431 Visiting forces and Notice 197 Excise goods: receipt into and removal from an excise warehouse of excise goods.
You must obtain an order together with an exemption certificate when supplying wine in duty suspension to entitled international organisations, embassies and forces located elsewhere in the EU. You must use EMCS for the removal of wine from your premises. You will find more information on this and the procedures to follow in Notice 197 Excise goods: receipt into and removal from an excise warehouse of excise goods.
All intra UK movements of wine will need to be submitted through EMCS unless they qualify for the simplification procedures - see paragraph 22.2.
You may only remove wine:
You will be responsible for the duty on the wine until you receive a receipt. The receiving wine producer or cider maker must:
The receiving wine producer or cider maker must issue a receipt within five days of the date of receipt of the wine in their licensed or registered premises. If you do not receive a receipt, you should contact them. If you fail to obtain a receipt within four months, you will be liable for the duty due on the wine. If you subsequently receive a receipt, you may credit you duty account with the appropriate amount of duty.
When wine is delivered to home-use from the receiving winery, duty will become due. Duty must be paid by the producer who finally delivers the wine to home use.
Finished or packaged wine must not be moved, without payment of duty, from one set of licensed premises to another, with the following exceptions:
Simplification procedures apply to certain UK movements and allows for wine to be moved under duty suspension using commercial documentation or Customs documentation instead of EMCS. These procedures are limited to:
If movements do not meet the above criteria, then it will be necessary to use EMCS.
This is any product which is canned, bottled or otherwise packaged and products which will not undergo any further process of production.
All intra UK movements of wine will need to be submitted through EMCS unless they qualify for the simplification procedures.
You may remove wine, without payment of duty, to an Excise warehouse (approved under Section 92 of the Customs and Excise Management Act 1979) for the following purposes:
After fortifying, bottling or rendering sparkling, the wine may be returned to your winery.
In the case of finished and packaged product, each package must carry a satisfactory identifying mark and number. Containers must be full, and each case must hold containers of uniform size.
If the movement is under EMCS, an eAD will have to be raised on EMCS before the movement can start. EMCS automatically allocates an ARC that uniquely identifies the movement. The ARC will be on the printed copy of the eAD or should be noted on the commercial document and must travel with the goods.
If the movement is under simplified procedures and is as described in first bullet point of paragraph 22.2, your normal commercial despatch documents will be suitable if they contain all the following information:
Keep a copy of the despatch document, and the warehouse keeper's receipt, for your own records. For further details on the procedures for inter-warehouse removals see Notice 197 Excise goods: receipt into and removal from an excise warehouse of excise goods.
All intra UK movements of wine will need to be submitted through EMCS unless they qualify for the simplification procedures.
On receipt of wine you must:
If you discover a discrepancy between the wine received and the accompanying document, you must issue a receipt only for the wine you actually receive. Show the discrepancy clearly on the certificate of receipt or include an inventory of the shortage or loss in the report of receipt.
The wine received becomes part of your stock and is subject to the same rules as the product you produce on your licensed premises.
Remember, if you are not approved as an Excise warehouse, you can only receive wine in a ready for sale state if you produced it yourself, or if you are a commercial grower who is licensed as a wine producer, and the wine in question has been produced on your behalf (see paragraph 3.3).
A VI 1 form must accompany wine consignments from outside the EU. Responsibility for completion rests with the consignor and the authorised agency in the country of origin.
A VI 2 form is used when consignments of wine from non-EU countries are subsequently split for sending to different destinations within the EU. You can obtain form VI 2 from our Helpline, on Tel 0300 200 3700. Once the VI 2 form is completed, it should be retained and presented to visiting HMRC officers to endorse and stamp the form.
The Wine Standards Branch (WSB), which is part of the Food Standards Agency, publishes a ' Brief introduction to the Common Agricultural Policy Wine Regulations of the European Community (EC)' setting out requirements for documentation, composition, description and presentation. For further information, go to Food Standards Agency.
A trade facility warehouse is an Excise warehouse approved under the Customs and Excise Management Act 1979 section 92(1). You will need a trade facility warehouse approval, in addition to your winery licence, if you wish to receive and store duty free:
HMRC will restrict any approval as a trade facility warehouse to the specific trade need as detailed on your application. For further details on approval of premises and HMRC requirements, see Notice 196 Excise Goods: Authorisation of warehouse keepers, Approval of Premises and Registration of owners.
You may be required to provide a secure compartment for the storage of dutiable materials. The entrance door and any approved compartments must be secured in accordance with the requirements for warehousing premises - see Notice 196 Excise Goods: Authorisation of warehouse keepers, Approval of Premises and Registration of owners.
To have part of your winery approved as a trade facility warehouse, you will be required to obtain a guarantee - see Notice 196 Excise Goods: Authorisation of warehouse keepers, Approval of Premises and Registration of owners.
The deposit of goods in a trade facility warehouse is governed by the Excise Warehousing (Etc.) Regulations 1988 (SI 1988/809). Any Customs duty due on imported materials to be used in the production of wine must have been accounted for before receipt into the trade facility warehouse (but see paragraph 10.1 about Inward Processing Relief).
The procedure and requirements set out in paragraph 24.1 of this notice and in Notice 197 Excise goods: receipt into and removal from an excise warehouse of excise goods apply to the receipt of all eligible goods deposited in a trade facility warehouse.
You must keep a record of all receipts and usage of goods deposited in warehouse.
You must follow the general procedures set out in Notice 197 Excise goods: receipt into and removal from an excise warehouse of excise goods for operations in a trade facility warehouse. We will notify you of any restrictions or conditions on your operations or the way you conduct them.
You may fortify wine in your trade facility warehouse if it has been:
Unless we inform you in writing to the contrary, you may commence operations as soon as you have recorded what you intend to do in your production records.
Fortification of wine (including UK produced wine) is governed by EC Regulations which are administered by the Department for Environment Food and Rural Affairs (Defra). It may be necessary to consult Defra before we can approve your application.
You can fortify wine or made-wine with added alcohol, provided the final strength of the fortified wine or made-wine does not exceed 22 per cent ABV and the resulting product would not be classified as a spirit under the Integrated Tariff of the United Kingdom (Combined Nomenclature). If you fortify wine or made-wine to a strength above 22 per cent, or the resulting product would fall to be treated as a spirit under the Tariff, then the product will be dutied in line with the spirits rate.
A fermented beverage to which distilled alcohol has been added will remain classifiable as a fermented beverage if it retains the character of a fermented beverage. If it does not, it must be classified as a spirituous beverage.
Formerly, in classifying such products, we applied the ‘three-stage’ test, which looked at:
If the answers to two or more of the questions were ‘the fermented beverage’, the beverage was to be classified as a fermented beverage. Otherwise, it fell to be classified as a spirituous beverage.
HMRC still have regard to these three factors but in a less rigid way, looking at them ‘in the round’. In most cases, if a product ‘ticks two boxes’, that will settle the question as before. However, there will be some cases in which it will not. For example, a product might derive slightly more of its volume and alcoholic strength from the fermented beverage, but taste and smell overwhelmingly like a spirituous beverage and be marketed as such. In such a case, the product will be classified as a spirituous liquor. Conversely, if a product tastes and smells very much like a fermented beverage, and is marketed as a fermented beverage, it will not matter that the added spirit might slightly predominate in terms of overall volume and alcohol content.
Note: if the beverage has already been fortified, the spirituous liquor used in the fortification counts towards the total contribution of spirituous liquor.
Where we think it necessary, we will carry out taste tests whenever we need to make a decision about the proper classification of a product of this kind. All such tests are carried out by a UKAS-accredited laboratory approved by HMRC and in accordance with approved methods designed to give the most objective results. If we perform a test, you will then need to provide us with samples of the product. You can get information about tests and samples from the Tariff Classification Advice Line on 01702 366077.
We do not carry out tests if it is clear that the finished product would fall under the Combined Nomenclature headings 2204 or 2205, detailed in Volume 2, Part 2 of the UK Tariff.
A BTI is a written decision on the proper tariff classification of a product. It is given by HMRC on application, provided that it relates to an import or export actually in contemplation. The application must be made to the Tariff Classification Service on form C103 and you should provide with it samples of the product, as described above. A BTI is legally binding on HMRC and all other customs authorities in the European Union for six years from the date of issue (although in some circumstances it may be revoked or annulled before then). However, you are under no obligation to obtain a BTI and you should find it possible to work out for yourself how your products should be classified by reading the tariff and consulting the guidance in this notice. You may also seek advice from the Tariff Classification Advice Line. It is important to be aware that tariff classification does not always govern excise duty liability and that other countries in the European Union may apply a different rate of excise duty to your product.
In all cases you should maintain records giving the full product specification, the step-by-step manufacturing process and any labelling and marketing material as well as a clear audit trail showing how the decision on the duty liability of the product has been arrived at. This must include the detail of the calculations you have made to decide how your product should be classified - see paragraph 25.7.
Besides your warehouse authorisation, you will require to be licensed as a compounder if the products you are manufacturing are compounded spirits - see Information Sheet - Excise Info Sheet 11/12 Authorisation requirements for rectifiers and compounders of spirits.
You can, but only in a trade facility warehouse. If the alcoholic strength of such mixtures does not exceed 5.5 per cent ABV, the mixtures do not contain any spirits and the predominant ingredient is beer, they will attract the beer rate of duty. Mixtures exceeding 5.5 per cent ABV that do not contain spirits are chargeable with duty as made-wines at the rate appropriate to their strength band.
For products classified as made-wines, duty is paid in the normal way on your EX606.
For those classified as beer or spirits, duty is accounted for on form W5 Excise warehouse - remittance advice for alcohol goods or W5D Excise warehouse - deferment advice for alcohol goods.
Yes. All Excise warehouse keepers must submit:
on a monthly basis.
The authorised warehouse keeper (the warehouse proprietor, a partner, or if a company, a director or company secretary) must certify each return as true and complete.
This method is referred to in section 9.
If there is a dispute over strength our officer may take samples of wine which will be analysed using the following method:
Where the result ascertained by this method is rendered inaccurate by the presence of substances other than alcohol, that method shall be adjusted in such a manner as may be approved by HMRC for the purpose of producing an accurate result.
* ‘Laboratory Alcohol Table’ means a table of which a copy, signed by the Chairman of the Commissioners and identifying it as relating to the Spirits Regulations 1991, has been deposited in the office of the Queen's Remembrancer at the Royal Courts of Justice.
As a licensed wine producer, you are required to notify us if you have been paid, or expect to be paid, in cash for the supply of duty suspended wine exceeding £9,000 (or equivalent in other currencies).
You must complete form W7 Notification of cash payments which can be found on our website, go to hmrc.gov.uk. For information on completion of the W7, please refer to the explanatory notes on the reverse of the form.
You must send the completed form by fax or email to the:
National Warrant Processing Unit
Fax: 0131 469 7321
Email: Warrant Processing Unit
If you are paid, or expect to be paid, in two or more instalments, which individually are below the £9,000 notification threshold but in total will exceed this amount, you must also notify us on form W7 when the first cash payment is received.
Provided you have notified the transaction to us, you do not need to wait for us to respond to receipt of the W7 before removing duty suspended wine to other licensed premises, Excise warehouses or Member States.
You are also required to notify us of any cash payments received (exceeding £9,000) for any service you provide relating to duty suspended wine, for example, storage facilities, handling charges, packaging of wine or use of an Excise movement guarantee.
(Referred to in section 3)
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.
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 fact sheet HMRC1 HMRC Decisions - What to do if you disagree. You can get this fact sheet on our website, go to hmrc.gov.uk or by phoning the Orderline on 0845 900 0404.
You can also find more information about how to appeal on the Tribunals Service website at Tribunals Service or by phoning 0845 223 8080.
Alcohol by volume (see alcoholic strength).
A calendar month, or such other period as may be authorised.
Alcoholic strength (by volume)
Ratio of the volume of ethyl alcohol contained in any liquor to the volume of liquor, including the alcohol (expressed as a percentage to one decimal place).
The Alcoholic Liquor Duties Act 1979
Administrative Reference Code. A unique reference that identifies the movement on EMCS.
Authorised warehouse keeper
Occupier or operator of a tax warehouse (see definition of tax warehouse).
Customs Handling of Import and Export Freight
Cider or perry which is:
- any alcoholic liquor, or
In addition, from 1 September 2010, the cider definition was extended to provide that 'the pre-fermentation mixture satisfied the pre-fermentation requirement' and the cider 'satisfies the final product juice requirement' - for further details, see Notice 162 cider production.
Charges on imported goods levied under the Common Customs Tariff of the European Union (EU), any other charges having equivalent effect and agricultural levy.
The time when the duty becomes payable, whether or not payment is deferred.
An arrangement, which allows goods liable to Excise duty to be produced, processed, held, received and despatched without payment of duty.
Electronic administrative document
Excise Movement and Control System
The duty charged on
A place approved by HMRC under the Customs and Excise Management Act 1979 Section 92 for the storage of goods on which Excise duty is suspended.
The mixing of wine or made-wine with spirits under Sections 57 or 58 of ALDA.
The person(s) who own or lease vines and nurture, pick and generally look after the fruit.
One hundred litres.
Containers in excess of 10 litres (casks and kegs)
Licensed wine producer
A person who produces wine on any premises in the UK licensed under ALDA Section 54(2) in respect of those premises.
Licensed wine premises
Any premises in respect of which a licensed wine producer is licensed under ALDA Section 54(2).
Licensed made-wine producer
A person who produces made-wine on any premises in the UK licensed under ALDA Section 55(2) in respect of those premises.
Licensed made-wine premises
Any premises in respect of which a licensed
made-wine producer is licensed under ALDA Section 55(2).
Any liquor obtained from fermentation, or by mixing any liquor or substance with the product of alcoholic fermentation, which is not wine, beer, cider or spirits.
An officer of HMRC
To put wine into tanks, bottles or any other receptacles of a kind in which wine or made-wine is distributed to wholesalers or retailers.
A description of wine according to its brand name, package size and alcoholic strength.
as a result of any process:
Containers of 10 litres or less (bottles and cans).
Spirits (anything over 22%)
Spirits of any description (other than denatured alcohol) including all liquors mixed with spirits, and all mixtures, compounds or preparations made with spirits.
Any wine which has not been rendered sparkling (see above).
Integrated Tariff of the United Kingdom.
Premises in which Excise goods may be produced, processed, held, received and despatched under duty suspension. Licensed premises and Excise warehouses are tax warehouses.
Trade facility warehouse
A warehouse approved under the Customs and Excise Management Act 1979 for specific purposes as per Notice 196 Excise goods: authorisation of warehouse keepers, approval of premises and registration of owners.
Any liquor obtained from the alcoholic fermentation of fresh grapes or the must (juice) of fresh grapes, whether or not the liquor is:
The European Community Wine Regulations require wine to be made of fresh grapes, originating from within the European Community. They also specify how the wine is to be manufactured and marketed.
Device inserted into cans and bottles which recreates the effect of draught wine or made-wine when it is poured.
Your Charter explains what you can expect from us and what we expect from you. For more information go to www.hmrc.gov.uk/charter
If you have any comments or suggestions to make about this notice, please write to:
HM Revenue & Customs
3rd floor West, Ralli Quays
3 Stanley Street
Please note this address is not for general enquiries.
For your general enquiries please phone our Helpline 0300 200 3700.
If you are unhappy with our service, please contact the person or office you have been dealing with. They will try to put things right. If you are still unhappy, they will tell you how to complain.
If you want to know more about making a complaint go to www.hmrc.gov.uk and under quick links, select Complaints and appeals.
HM Revenue & Customs is a Data Controller under the Data Protection Act 1998. We hold information for the purposes specified in our notification to the Information Commissioner, including the assessment and collection of tax and duties, the payment of benefits and the prevention and detection of crime, and may use this information for any of them.
We may get information about you from others, or we may give information to them. If we do, it will only be as the law permits to:
We may check information we receive about you with what is already in our records. This can include information provided by you, as well as by others, such as other government departments or agencies and overseas tax and customs authorities. We will not give information to anyone outside HM Revenue & Customs unless the law permits us to do so. For more information go to www.hmrc.gov.uk and look for Data Protection Act within the Search facility.
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