HMRC: Excise Notice 197 Update Adds Vaping Duty, Windsor Framework Guidance

• HMRC has significantly updated Excise Notice 197, detailing requirements for duty-suspended excise goods in the UK and EU.
• New guidance includes guarantee requirements for movements and revised procedures for importing excise goods from outside the UK.
• The update incorporates the new Vaping Products Duty and clarifies post-Brexit arrangements, including the Windsor Framework and Customs Declaration Service.
• Specific changes address third-party goods ownership, EORI numbers for duty deferment, and procedures for exports and Northern Ireland movements.
• Outdated sections and references have been removed, and contact information has been updated to email addresses.

For legal professionals and compliance officers, a thorough review of these revisions is imperative to ensure that clients' and organizations' procedures for receiving and removing excise goods from warehouses remain fully compliant.

The UK's HM Revenue & Customs (HMRC) has issued a comprehensive update to Excise Notice 197, which outlines the requirements for the holding and movement of excise goods under duty suspension within the United Kingdom and the European Union. This revision introduces significant adjustments across various operational areas, reflecting evolving regulatory landscapes and new duty regimes. Key enhancements include new guidance on guarantee requirements for duty-suspended movements and substantial revisions concerning the import of excise goods from non-UK countries.

Furthermore, the updated notice incorporates specific provisions related to the new Vaping Products Duty, providing essential guidance for businesses operating in this sector. It also addresses the complexities of post-Brexit trade, particularly movements involving Northern Ireland under the Windsor Framework, and integrates the use of the Customs Declaration Service (CDS) for excise goods. These changes collectively aim to clarify existing procedures, introduce new compliance obligations, and streamline administrative processes for excise warehouse operators and traders.

Several sections of Excise Notice 197 have undergone detailed amendments to enhance clarity and align with current legislative frameworks. A new Section 4 has been dedicated to 'Guarantee requirements for excise duty-suspended movements,' establishing clear expectations for financial assurances. Concurrently, Section 7 has been entirely replaced with new information specifically addressing the procedures for 'importing excise goods from countries outside the United Kingdom,' a critical area post-Brexit. Additionally, Section 4, which covers 'Simplified procedures,' now includes a new subsection, 4.1, detailing 'Certificates of receipt.'

The guidance also clarifies the ownership of third-party goods stored in excise warehouses, an important distinction for liability and compliance. Procedures for exports followed by transit have been refined, alongside explanations of how reliefs are applied to movements involving Northern Ireland. The use of EORI numbers for duty deferment accounts has been clarified, and information regarding vaping products has been integrated into the Excise Movement and Control System (EMCS) – Completion Guide for Great Britain attachment. Specific updates include Section 11, which now details how to pay excise duty when goods are removed for home use, and Section 14.6, which mandates a signed declaration from the owner for duty-free sample removals, to be retained by the warehousekeeper for audit purposes.

Further modifications address the practicalities of excise warehouse goods movement UK. Section 13 has been extensively updated to incorporate references to the Customs Declaration Service (CDS), remove outdated references to CHIEF, and clarify the policy and procedures for exporting excise goods. The notice also reflects recent changes to The Warehousekeepers and Owners of Warehoused Goods Regulations (WOWGR) 1999 and freeports legislation, ensuring alignment with these broader regulatory shifts. Section 16.6 has been updated to reflect the new arrangements established by the Windsor Framework. Outdated sections 9.2 to 9.7, which previously covered 'Buying and selling duty-suspended goods in warehouse,' have been removed, streamlining the guidance. Similarly, obsolete information on issuing draft guarantee forms and irrelevant legislative references have been purged. Contact details across numerous sections, including 5.4, 7.2.7, 8.2, 8.3, 10.5, 12.1, 12.2, 12.9, and 12.10, have been updated, replacing helpline numbers with email addresses.

The comprehensive nature of the HMRC Excise Notice 197 update underscores the dynamic regulatory environment for excise goods. For legal professionals and compliance officers, a thorough review of these revisions is imperative to ensure that clients' and organizations' procedures for receiving and removing excise goods from warehouses remain fully compliant. The changes impact critical areas such as third-party ownership responsibilities, the new Vaping Products Duty guidance, and the specific guarantee requirements for duty-suspended movements.

Moreover, the integration of post-Brexit arrangements, including the Windsor Framework excise goods provisions and the mandatory use of the Customs Declaration Service excise system, necessitates a re-evaluation of existing operational protocols. Businesses engaged in excise warehouse goods movement UK must adapt their internal systems and training to reflect these new requirements, from documentation for certificates of receipt to the revised procedures for rejected goods and duty-free supplies to the Royal Navy. Failure to understand and implement these updates could lead to significant compliance risks and potential penalties.

Lawyers and compliance officers must review the updated Excise Notice 197 to ensure clients' and organizations' procedures for receiving and removing excise goods from warehouses comply with the latest requirements, particularly regarding third-party ownership, Vaping Products Duty, guarantee requirements, and post-Brexit arrangements like the Windsor Framework and Customs Declaration Service.

Source: Original reporting via GOV.UK