HMAG150701 - Excise duty points: irregularity which occurs in Great Britain during an excise duty-suspended movement consigned from a warehouse
Source: gov.uk (2025-05-30)


The relevant provisions are contained in The Excise Goods (Holding, Movement and Duty Point) Regulations 2010 (HMDP).

This section applies when an irregularity occurs in Great Britain during a movement of excise duty-suspended goods which have been consigned from a warehouse. This covers movements between warehouses in the United Kingdom or where the excise goods are consigned to a place from where those goods will leave the territory of United Kingdom (in other words are going for export).

When there is an irregularity in the course of a movement, which occurs, or is deemed to occur in Great Britain, there is a release for consumption under regulations 6(1)(a) and 7(1)(h), with an excise duty point arising under regulation 5.

‘Irregularity’ means a situation occurring during a movement (or part movement) of excise goods under a duty-suspension arrangement and the loss is not an allowable one under regulation 21 of the HMDP Regulations. Please refer to notice 197 for more information on losses.

Excise duty point

Where there is a release for consumption under regulations 6(1)(a) and 7(1)(h), an excise duty point arises under regulation 5. There are two regulations which prescribe the time when the goods are released for consumption. These are:

Regulation 80 when an irregularity occurs or is detected during a duty-suspended movement

This regulation applies when an irregularity occurs during an excise duty-suspended movement, or when the irregularity is detected or first comes to our attention. It applies in cases where the goods have been consigned to another warehouse in the United Kingdom or to a place where the goods will leave the territory of the United Kingdom (for export) and the irregularity occurs or is discovered during the duty-suspended movement. This includes the situation where a vehicle arrives at the stated destination and all or some of the excise goods are found to be missing. It also applies where the duty-suspended movement has been closed on EMCS but there is sufficient evidence to demonstrate that the goods did not actually arrive at their stated destination.

The excise goods are released for consumption at the time of the irregularity or, where it is not possible to establish when the irregularity occurred, the time when the irregularity is detected or first comes to our attention.

Example when Regulation 80 is appropriate

A warehousekeeper in Dover consigns a pallet of beer to another warehouse in Leeds, with the transporter of the goods providing the movement guarantee. The driver of the vehicle makes a stop at a service station for an hour. When the lorry arrives at the destination warehouse a warehouse operator finds that half of the load is missing. The warehouse immediately notifies HMRC about the missing goods. Despite all the interested parties looking into this, no-one can establish where, and when the goods were stolen. Therefore, the irregularity is considered to have taken place at the time when this first came to our attention. In this case that would be the time when HMRC were first notified that the goods were missing. The person liable to pay the duty in this case is the transporter because they provided the movement guarantee.

Regulation 81 Failure of excise goods to arrive at their destination

This regulation applies when the duty-suspended movement is not discharged by the arrival of the goods at their stated destination and no irregularity is detected in the course of the movement. It is not necessary to identify the irregularity, however an irregularity is deemed to have occurred because the duty-suspended movement remains open on EMCS.

The irregularity is deemed to have occurred at the time the movement started (in other words the goods are released for consumption at the time the movement started). The excise duty point is the time when the goods left the warehouse.

This regulation does not apply if the person who guaranteed payment of the duty, or where no guarantee was required the consignor of the goods, is able to satisfy HMRC that the goods did arrive at their stated destination within four months after the movement started.

This regulation also does not apply where the person who is liable to pay the duty did not know, or could not reasonably have known, that the goods had not arrived at their stated destination, is able to satisfy HMRC that the goods did arrive at their stated destination within one month after they have been notified of their liability by HMRC.

Example when Regulation 81 is appropriate

A warehousekeeper in Leeds consigns a container of beer to another warehouse in Dover but the duty-suspended movement is still outstanding on EMCS after four months. Nothing is known about the whereabouts of the goods and an irregularity is therefore deemed to have occurred under regulation 81(2) at the time the goods were dispatched. However, the transport company (who provided the movement guarantee) is unaware that the movement has not been discharged and is given an additional month by HMRC to provide alternative evidence. The transport company is unable to provide alternative evidence to satisfy us that the goods arrived at their intended destination at the end of the month. The excise duty point is the time when the movement started e.g. when the goods were released from the warehouse. The person liable to pay the duty is the transport company who provided the movement guarantee.

Person/s liable to pay the duty

The person/s liable to pay the duty where the goods are released for consumption under regulations 6(1)(a) and 7(1)(h) are shown in regulation 9.

Under regulation 9(1)(a), where a guarantee is required the person liable to pay the duty is the person who provided the guarantee. The guarantee provider should be shown on EMCS or Fallback document.

Under regulation 9(2), any other person who participated in the irregularity and who was aware, or should reasonably have been aware, that it was an irregularity is jointly and severally liable to pay the duty.

Under regulation 9(1)(b), where a guarantee is not required, the person liable to pay the duty is the authorised warehousekeeper of dispatch.

Under regulation 9(2), any other person who participated in the irregularity and who was aware, or should reasonably have been aware, that it was an irregularity is jointly and severally liable to pay the duty.

Participated

The word ‘participated’ has a wide meaning which can include any person who took part in, became actively involved in, or shared in an activity. The regulation restricts participant liability to those who were aware, or should reasonably have been aware, that it was an irregularity.

Examples of participants who may have a joint and several liability under regulation 9(2) are:
- the transporter or lorry driver who delivers and/or unloads goods at another address,
- the owner or person who instructs the transporter to deliver the goods to another address,
- the person who provides the financial backing for the consignment, and
- a person who purchases excise goods at a price that is ‘too good to be true’.
In addition, you should consider whether there is anyone else involved, who by their action, also knowingly participated in the irregularity. The test is not that the person or business ‘directly’ participated in the irregularity but that it did participate in some way and was aware, or should reasonably have been aware, that it was an irregularity.

Each case should be considered on its own merit. Where you are unsure whether the joint and several liability provision can be applied, you should discuss the case with the Alcohol Technical Support team.

Circumstances when excise duty is not due

If the excise goods are lost or destroyed during an excise duty-suspended movement and HMRC are satisfied that the goods have been irretrievably lost or destroyed (for example, due to an accident, the nature of the goods, or some other unforeseeable event) then there is no excise duty point and no excise duty is due on those goods. This is by virtue of regulation 21.

However, if the excise goods are stolen during the duty-suspended movement, excise duty is always due on those goods.