HMRC: Issues Excise Notice 207 Duty Drawback Updates

• HMRC has significantly updated Excise Notice 207, detailing UK excise duty refund changes for goods not consumed in the UK.
• The Alcohol Duty Stamps Scheme is discontinued as of May 1, 2025, removing legal requirements for duty stamps on alcoholic products.
• New Computerised Transit System (NCTS) data can now exceptionally serve as supporting evidence for export claims when other documentation is unavailable.
• The EX75 drawback claim form updates include revised guidance on where to obtain and submit the 'Notice of Intention to claim drawback'.
• References to 'made wine' have been changed to 'other fermented products' due to the Finance (No. 2) Act 2023 alcohol duty changes, effective August 1, 2023.

From May 1, 2025, the legal requirements pertaining to duty stamps for alcoholic products are no longer in effect.

Her Majesty's Revenue and Customs (HMRC) has issued significant revisions to Excise Notice 207, which governs UK excise duty drawback procedures. This notice details the process for obtaining a refund of UK excise duty on goods that are not, and will not be, consumed within the United Kingdom, provided specific eligibility and other conditions are met. The updates reflect a broader effort to streamline and clarify the requirements for claiming UK excise duty refunds.

Among the most notable changes are the discontinuation of the Alcohol Duty Stamps Scheme, new provisions for supporting evidence in export claims, and enhanced integration with the Customs Declaration Service. These HMRC Excise Notice 207 duty drawback updates are crucial for businesses involved in the export of excise goods, necessitating a thorough review of their compliance protocols.

The revised notice provides comprehensive information on various aspects of the drawback process, from initial intent to claim through to the submission of supporting documentation. It aims to improve clarity for traders on what is required to successfully claim a refund, addressing both general procedural steps and specific evidential requirements.

The updated guidance introduces several key procedural adjustments for businesses seeking an excise duty refund. Information regarding the EX75 'Notice of Intention to claim drawback' (NOI) form has been revised, with Section 5.2 now detailing where to obtain the form and Section 5.6 specifying submission locations. Furthermore, Section 4.1 has been expanded to include additional details outlining the requirements a trader must meet to make a claim.

Crucially, the notice clarifies acceptable forms of supporting evidence for drawback claims. Section 7.4 now permits the exceptional use of data from the New Computerised Transit System (NCTS) as proof of export. This applies in cases where duty-paid excise goods have been exported under transit arrangements, but standard Customs Handling of Import and Export Freight (CHIEF) or Customs Declaration Service information is unavailable to confirm the goods have left the UK. This represents a significant development for NCTS evidence excise duty claims.

Further enhancements address documentation requirements, with Section 4 providing more information on what constitutes an 'original duty paid document,' and Section 4.7 offering clarified examples. Information regarding the use of the Customs Declaration Service (CDS) has been integrated into sections 4.7, 4.8, 7.4, and 8.7, with Section 7.4 specifically confirming the evidence required for claims involving alcoholic goods submitted via CDS or CHIEF. Section 6 outlines actions required before dispatching goods and claiming drawback, including necessary accompanying documents, while Section 3 details documents that must accompany goods. Section 7.1 has also been updated to improve understanding of pre-export actions and what to include on an export declaration for matching with commercial documentation.

A major legislative change reflected in the updated notice is the discontinuation of the Alcohol Duty Stamps Scheme. From May 1, 2025, the legal requirements pertaining to duty stamps for alcoholic products are no longer in effect. This change simplifies compliance for businesses dealing with alcoholic products destined for export or non-UK consumption.

Additionally, the notice incorporates changes stemming from the Finance (No. 2) Act 2023, which introduced new alcohol duty rates effective August 1, 2023. Consequently, all references to 'made wine' have been updated to 'other fermented products,' aligning the terminology with current legislation. Specific cider and beer notices, which are no longer relevant, have been removed, and 'EX46 returns' are now referred to as 'Alcohol Duty returns.'

To further assist traders, the updated notice includes links to the alcoholic products technical guide and provides information about the alcoholic products producer approval (APPA). These resources are intended to help businesses navigate the evolving landscape of alcohol duty regulations and ensure proper compliance with the UK excise duty refund changes.

Beyond procedural and legislative updates, HMRC has also revised various administrative details within Excise Notice 207. Contact information for general inquiries about excise and drawback, as well as for the notice itself, has been updated. The contact address for the 'Drawback Central Assurance Team' has been revised, and details for reaching the Mineral Oil Reliefs Centre have also been refreshed.

In a move reflecting modern communication practices, all mentions of fax have been removed from the notice, as HMRC no longer uses fax machines for sending or receiving information. These administrative adjustments aim to ensure that businesses can access accurate and up-to-date contact details when engaging with HMRC regarding excise duty drawback claims.

Lawyers and compliance officers must advise clients on the updated procedures and documentation required for claiming UK excise duty drawback, particularly noting the discontinuation of the Alcohol Duty Stamps Scheme from May 2025 and the new acceptance of NCTS data as supporting evidence for export claims. Failure to adhere to these changes could lead to rejected claims or non-compliance.

Source: Original reporting via GOV.UK