The EMCS system for the movement of Wines and Spirits liable to Excise Duty was introduced in all EU Member States on 1st January 2011. It replaces the issue of a paper Accompanying Administration Document (AAD) with an electronic document (eAD) being transmitted directly by the supplier via the Government Gateway to a UK Tax Warehouse on Duty suspended movements or to the Registered Consignee for duty paid transactions destined for direct delivery to the clients warehouse.
The transportation of product without an eAD being completed is an illegal transaction and the product if stopped in route is liable for seizure by either Continental or UK Customs. It is also illegal to issue a paper AAD form for a current movement, however product purchased duty paid in the country of despatch should be accompanied by a Simplified AAD (Paper SAD).
Full details on the EMCS system can be found on the Internet under the heading “HMRC Excise Movement Control System”. The main Custom’s Public Notices relating to the EMCS procedures are 196 and 197 for Duty Suspended goods and Notice 203A for duty paid consignments. The data on AADS in Notice 203A no longer applies and this document will shortly be reissued by HMRC.
The following information is a general guide on important information that we believe clients/suppliers should be aware off and where applicable included in the eAD transmission to the U.K. This will allow for a satisfactory document with an ARC Number to be transmitted and after delivery for the document be receipted/ discharged with the minimum of delay.
Registered Consignees (EU Products)
On orders shipped as Duty suspended to a Tax Warehouse the suppler must on the eAD consign the order to the correct Customs Authorisation number for the Warehouse keeper – this will be prefixed by the letters GBWK. They must also show the delivery address of the Tax Warehouse with its Customs authorisation number. Both these number can be verified by the supplier on the EU SEED Data base. Please note this data base does not show address’s it only verifies that the authorisation numbers are correct. On transactions being transported by JF Hillebrand the relevant data/ information to be placed on the eAD will be advised to the supplier prior to collection
It’s most important that on the eAD the UK clients order number is shown so that upon arrival at the delivery point the warehouse can readily identify the load and discharge it into their premises. We would strongly recommend that the “Local Reference Number Section “on the eAD is used for this information. This “box” can be found on the eAD in Section (9) Data box (3) in EU Regulation 684/2009
The number of transit days declared by the supplier on the eAD should be realistic and relate to the anticipate period of time that it will take for the vehicle carrying the product to reach its destination. Our office if required can give some guidance on these transit periods.
In order to minimise liability to any loss of product on full load consignments a seal must be placed on the vehicle at the suppliers premises and its details should be recorded within the eAD document which is to be transmitted to the UK delivery warehouse.
Any consignments travelling on Fallback Documents when the supplier is unable to issue an eAD at the time of shipment should be finalised as soon as possible with an electronic transmission being validated and an ARC reference number issued. We would recommend that either the UK Tax Warehouse of this office is advised of the ARC reference number when it’s available.
The Tax Warehouse should receipt all eAD’s in the EMCS system within 5 days of the delivery of the order at the nominated delivery location and any shortages should be reported to the Custom authorities /consignor as per Notice 197.
On movements being shipped to a Registered Consignee and destined for direct delivery to a duty paid location the procedures should follow the procedure as indicated for a Tax Warehouse movement with the exception that the final delivery address will not have an authorisation number. The supplier however must declare the correct delivery address on the eAD if they fail to do so it may not be possible for the eAD to be receipted within the UK system and the supplier will not receive confirmation of its discharge.
The Registered consignee is only obliged to pay Excise Duty on the product received at the delivery location and any shortfall of tax due to shortages will in theory be recovered by HMRC from the Guarantor shown on the eAD. All damaged product on duty paid consignments must be accepted at the delivery point and retained until HMRC agree the duty liability can be mitigated. Any shortages /damages must be notified to us within 5 days of the delivery otherwise the Excise duty will be paid to Customs on the full quantities declared on the eAD.
As the Registered Consignee will most likely not be the delivery point it is again most important that the clients order number appears on the eAD so that the movement can be traced and the Excise duty paid to Customs.
On eAD’s destined to either a Tax Warehouse or a Registered Consignee we would recommend that a printed copy of the eAD document travels with the consignment.
Small Wine Suppliers who produce a 1000 Hectolitres or less per year are with the exception of product coming from Austria/Belgium/Germany/Greece/Italy/Luxembourg/Portugal obliged to use an eAD document. On the countries highlighted the supplier can send their product with commercial documents which must show similar data as to that which appears on an eAD.
Registered Consignor (UK Movements)
Where JF Hillebrand are acting as the Registered Consignor on Non EU Wine which have been custom cleared at the Port of arrival with the CCT Duty being paid we will unless advised in writing to the contrary automatically cover the Movement of the consignment from Port to the Tax Warehouse with our Movement Guarantee.
Each container requires an individual eAD Document and it is a Custom’s requirement that your nominated Tax Warehouse has to check that the seal on the container matches the seal number shown on the eAD. Any discrepancies must immediately be notified to this office.
Non EU Wine consignments which are either fully Duty paid at the Port of arrival or are Full CCT/Excise Duty suspended movement do NOT need an eAD document. This also applies to CFSP declarations made at the Port of arrival
The receiving Tax Warehouse must receipt the eAD document within 5 days of the order being delivered – they can only reject product for Health & Safety reasons. Incorrect product supplied cannot be rejected at the time of delivery it should be retained until a new eAD has been issued to allow it to be moved to another approved Tax Warehouse.
Product being shipped from a Tax Warehouse to either a UK Port or Continental Port for direct exportation outside the EU requires an eAD to be issued. The same applies for UK Product being consigned to an EU approved delivery destination. Full details of the procedure for the issue of these eAD’s can be found in Customs Notice 197 Section 13.3. We would recommend if you are involved in these movements that you read the Customs Notice as the eAD will not be discharged by a third party.
Should you require a more detailed explanation on EMCS or any of the points shown on this document please contact our Sales Team on +44 (0)1708 689000