International Business

International business, as the name implies, stands for business transactions between different countries. Those business deals could be for an exchange of goods, services, or skills and talents of people, not to mention the financial power that could be advantageous for the involved country's industry of banking, finance, construction amongst others. Now that globalization is common when it comes to communication and technology, it shows our ability to coordinate with each other no matter how much discouragement is showed.

Just as with any business, transactions or deals made with a foreign company can be very much challenging. Here are some of the challenges that most businesses with international transactions face:

* Culture. Local businesses are simpler in terms of the norms between the transactions. If deals are made between two foreign countries, culture and tradition amongst the two should be understood. For many years, misunderstandings and misconceptions of different ethnicity have been the source of conflict involving different nations. But, the truth of the matter is that each country has different beliefs. Once mutual respect is achieved, battles would never be necessary even with many disparities in the way of living.

* Travel. Traveling from country to country will involve a lot of time, effort, and money as opposed to transacting with a local entrepreneur. On the other hand, this is the only way to show the sincerity in the transaction especially during the earlier phases when trust still needs to be built.

* Language. Language is one of the barriers of communication. This is a great challenge especially for those who do not know how to speak English. Although there are translators, businessmen still need to learn the basic language which is very important in every business. Proper communication is one of the vital key points in having a successful international business.

* Adaptation. Keep in mind that in dealing with foreign people, there is a need to adapt with their customs and norms. It is very unwise to expect that dealings can be made in the same way all the time. Remember that these are different people, and they may have a different approach to certain situations that is often dealt differently.

However, despite all those challenges, one thing still remains true. The modern technology in this era has made it possible to communicate without any trouble. By way of the internet, transactions can be made through online, which makes for the easiest way of collaborating between countries. As a matter of fact, outsourcing can be a great help especially in marketing, advertising, manufacturing, and other tasks.

Even though it can be quite a challenge to start an international business, the mere fact that information can now be passed on without any trouble can be a great benefit that beats the downsides. It is for this reason that more and more companies are now getting into the industry. The preparation and earlier stages may involve daunting tasks, but that is just the start. As time passes, it will be easier.

Article Source: http://EzineArticles.com/5828650

What is duty drawback?Duty drawback is the recovery of U.S. duties paid on merchandise that enters and subsequently leaves the commerce of the U.S. with the intent to join the commerce of another country. Drawback claims are reviewed and liquidated by U.S. Customs and Border Protection and payment, once approved, is made via check by the U.S. Treasury. 

Drawback can be filed against merchandise that has changed it's essential character (i.e. manufactured goods), and may be filed by any party that has maintained ownership and control of the merchandise provided they obtain the proper waiver of drawback rights from the other parties in the transaction.

Read more: http://wiki.answers.com/Q/What_is_duty_drawback#ixzz1HgJCFhfW

International DrawBack

International Drawback Services is a customhouse brokerage firm specializing in import tariff recovery. Over the years, we have established a solid reputation for our enterprising approach to drawback services. We are also distinguished by our successes in creating, deploying and expanding drawback programs into unchartered industries with commingled duty-rated materials and complex, multiparty product flows.

The founders of IDS have over thirty years of cumulative experience in drawback and international trade. This specialization in Customs regulations, import/export compliance and drawback procedure has quickly enabled IDS to establish its position as a leading drawback service provider, effectively managing drawback programs in a variety of markets and commodities, including many for Fortune 500 companies.

“Drawback” is the refund of Customs duties paid on materials imported to the U.S., which are subsequently

1. used to manufacture a finished product that is then exported,

2. exported unchanged, or

3. destroyed.

The Drawback regulation was established in 1789 for the purpose of encouraging domestic manufacturing and the export of manufactured goods, and is available across a broad array of industries and articles. Any duty-rated material is eligible for Drawback recovery.

EXAMPLE

In this simplified example, a domestic mill imports 1,000 pounds of titanium sponge and pays $ 1,000 in tariff fees. The mill then turns the ti-sponge into 1,000 pounds of titanium ingots and sells the ingots to a domestic forger. The forger presses the ingots into aircraft engine components, which are then sold to an aircraft manufacturing facility located in the U.S. When the aircraft manufacturer sells one aircraft abroad (export), its engine, containing 1,000 pounds of titanium-derived components, triggers the Drawback recovery opportunity for the 1,000 pounds of imported titanium sponge.

For this example, the Drawback recovery would total $1,000. This duty Drawback would typically be split equally among the domestic parties in exchange for providing the independent customhouse broker the necessary sales, purchasing and bill of material data for the initial duty to be recoverable through U.S. Customs. So, while the forger in the middle of the manufacturing process had no direct import or export activity, the company was still able to participate in Drawback recovery.

ADVANTAGES OF DUTY DRAWBACKS AND IDS

Any duty-rated material is eligible for Drawback recovery.

IDS can recover refunds on duties you paid up to five years ago.

Even companies with no direct import or export activity can benefit from Drawback recovery.

As a neutral third party, IDS is bound by strict confidentiality agreements.

We don’t get paid until you do. IDS is compensated by commissions based solely on the recovery of duties.

THE DRAWBACK TO DUTY DRAWBACKS

The only drawback to duty Drawback is chasing the refunds yourself. The U.S. Customs Service estimates that of the $3.5 billion in duties eligible for Drawback refunds annually, only $0.5 billion is actually claimed every year.

Drawback is often underutilized due to lack of awareness that the program exists, the complexity of related regulations and a reticence of partners in a supply chain to share confidential purchasing and sales information.

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Our daily contact with U.S. Customs enables IDS to swiftly and efficiently expedite the processing of your Drawback claims and documentary requirements. You’ll never miss a potential refund, including those eligible imports and exports that expire daily. We start by preparing the paperwork necessary to obtain your eligibility for the U.S. Customs provision of Accelerated Payment. Once approved, you’ll receive your Drawback refunds within 45 days from the date your claim is filed.

Our clients include: Goodrich, RMI Titanium Company, ALCOA, Carpenter, PCC, General Electric.

What is Duty Drawback?

Using Duty Drawback an importer registers the goods at the time of entry, and deposits the applicable duties and taxes with foreign customs. In Europe, duties and taxes range from 20-30% of the value of the goods. Often this deposit and payment has to be made in cash in the currency of the country being entered. Occasionally, they will accept credit cards. See the chart outlining which countries accept credit cards and be aware that these procedures and policies can change at any time without warning.

At the time of departure, the exporter presents the goods and appropriate paperwork to the customs inspector. Assuming the goods and paperwork are in order, exporters can expect to receive a full refund of the duties and taxes posted at some future point. (For Europe, refunds are generally made 2-6 months after departure.)

1.Introductiontop ^

1.1 What this notice is about

This notice gives information and guidance on claims for Excise duty drawback made in

accordance with the Excise Goods (Drawback) Regulations 1995 (EGDR).

It provides general information on the following:

the type of goods eligible for drawback

the circumstances in which they are eligible

who can claim drawback (we refer to such persons as ‘eligible claimants’)

completion and submission of claims

other procedures and requirements

evidence of UK duty payment required

the inspection period prior to removal for export/despatch/destruction

the procedure for obliteration of duty stamps

changes to the warehousing for export drawback arrangements introduced on 1 June 2009,

which removes entitlement to warehousing for export for alcoholic liquors, and

changes to the appeal system.

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2.Legal backgroundtop ^

2.1 Details of the law

You will find the primary legal provisions applicable to the contents of this notice in:

Full title Abbreviation

The Alcoholic Liquor Duties Act 1979 ALDA

The Customs and Excise Management Act 1979 CEMA

The Finance (No.2) Act 1992 FA 1992

The Hydrocarbon Oil Duties Act 1979 HODA

The Tobacco Product Duties Act 1979 TPDA

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2.2 Copies of the Acts and the Regulations

You can get copies of the Acts and Regulations from Her Majesty’s Stationery Office.

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2.3 Reference to the law

Where we refer to the law in this notice, we show the standard abbreviations set out in

paragraph 2.1.

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3.Eligibility for drawbacktop ^

3.1 Drawback system

The drawback system allows for the repayment of Excise duty paid on goods that have not

been and will not be consumed in the UK.

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3.2 Goods that are eligible for drawback

UK duty paid Excise goods which have been despatched to another Member State,

warehoused for export or destroyed or denatured are eligible for drawback (subject to

relevant conditions of drawback being met).

Only UK duty paid non alcoholic liquor Excise goods are eligible for drawback under

warehousing for export arrangements.

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3.3 People who are eligible to claim drawback

Only eligible claimants can submit claims. You will find more information about this in

section 4.

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3.4 Fiscally marked tobacco product

You can claim drawback on fiscally marked tobacco products providing you obliterate the

fiscal mark to our satisfaction.

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3.5 Spirits which bear a UK duty stamp

Spirits bearing a duty stamp are not eligible goods for the purposes of drawback. In order to

make a drawback claim you must first obliterate the duty stamp in accordance with

Regulation 2(3) of Duty Stamps Regulations 2006. You must give HM Revenue & Customs

(HMRC) at least two clear business days notice of when and where you intend to remove or

obliterate stamps.

Further information on duty stamps is contained in Notice DS5 UK Duty Stamps Scheme.

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3.6 Goods removed to the Isle of Man

Due to the common duty system operated between the UK and the IOM, goods (except

certain types of spirits, for more information see Notice 40 Spirits rectifiers and

compounders and spirits drawback) removed to the IOM are not eligible for drawback.

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3.7 Important Information

You are reminded that it is an offence to make a false claim. You can avoid a penalty by

checking that your claim is for eligible goods and that you are an eligible claimant and you

have given complete and accurate information.

If you deliberately make a false claim, you may face prosecution for the offence and incur a

heavy penalty.

You can get further information about penalties at the link below:

Briefing on new penalties

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4.Eligibility of claimantstop ^

4.1 Eligible claimant

You qualify as an ‘eligible claimant’ for EGDR purposes if you are a ‘revenue trader’ (see the

glossary at section 19) and you:

export goods to a destination outside the EU in the course of your business

despatch goods to another Member State in the course of your business

warehouse goods that are eligible for drawback (see section 3) and are responsible for

arranging their eventual export or despatch

are responsible for goods which are accidentally destroyed in circumstances which may give

rise to a drawback claim, or

destroy goods which are not of satisfactory quality (see the glossary at section 19) and on

which you (the claimant) paid the duty. For the purpose of this notice, ‘destruction’ includes

denaturing to our satisfaction.

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4.2 Private individuals

We do not accept claims from private individuals. We only accept claims from revenue

traders who, export/despatch, warehouse for export or destroy goods in the course of their

business.

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5.Conditions and requirementstop ^

5.1 The main conditions for drawback

We will pay drawback of Excise duty only if we are satisfied that all of the following

conditions have been met:

1. The goods have not been and will not be consumed in the UK.

2. The duty on the goods was paid not more than three years before the event giving rise to

the claim for drawback.

3. The duty claimed has not been remitted, repaid or drawn back prior to the claim.

4. The duty has been guaranteed, prior to despatch, in the Member State of destination, to

the satisfaction of the fiscal authorities in that Member State and subsequently collected

(despatch to EU only).

5. The claim is accurate.

6. You have observed the relevant conditions set out in this notice.

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5.2 Further conditions

To qualify for drawback you must observe the following conditions:

1. Give notice of your intention to claim drawback. You will find more information about this

in section 7.

2. Submit your claim in accordance with the procedures set out in section 8.

3. Maintain suitable records to support your claim for drawback. You will find more

information about this in Public Notice 206 Revenue traders records.

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5.3 Distance selling

There are special procedures for ‘distance selling’. You will find more information about this

in section 15.

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6.Claimant’s responsibilitiestop ^

6.1 Claiming drawback

If you wish to claim drawback you must do all of the following:

1. Comply with the law and with the requirements of this notice.

2. Ensure that duty was paid - and not reclaimed - on the goods no more than three years

before the event giving rise to the claim.

3. Ensure that your claims are accurate.

4. Keep complete accounts and records of all relevant transactions in accordance with

Notice 206 Revenue traders records and provide evidence of UK duty payment in

accordance with sections 8.5 and 8.6 of this notice.

5. Exercise control over the delivery or destruction of eligible goods.

6. Permit us to enter and inspect your premises and records.

7. Permit us to attend the destruction or denaturing of any products for which you intend to

claim drawback.

8. Permit us to examine the goods before export, despatch or (where warehousing for

export is permitted) warehousing.

9. Upon request supply us with information and documents relating to your business and

drawback claims.

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6.2 Other conditions you must meet

Along with the general conditions and requirements outlined above you must also meet the

conditions which we impose for each type of claim. You will find more information in

sections 10 to 17.

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6.3 You must ensure that the drawback conditions are met

You must ensure that the goods are either.

despatched to another Member State. You will find more information about this in section 12

exported to a destination outside the EU. You will find more information about this in section

10

warehoused for export (for non alcoholic liquor goods). You will find more information about

this in sections 13 and 14, or

destroyed either:

(a) as a result of a planned destruction. You will find more information about this in section

16, or 

(b) accidentally. You will find more information about this in section 17.

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6.4 Imposing additional conditions

We impose additional conditions by means of this notice. These conditions are imposed

under Section 7(1)(b) of EGDR and they apply to all claimants.

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6.5 Imposing specific conditions on your business and claims

We may impose specific conditions on your business and claims. These conditions are

imposed under Section 7(2) of EGDR. In such circumstances we will notify you in writing.

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6.6 Appealing against any conditions

You may appeal against any specific conditions which we may decide to impose. (See

section 9.3).

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7.Notice of intentiontop ^

7.1 Important information

You must fulfil this condition before we will accept a drawback claim.

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7.2 Notifying us that you intend to submit a claim for drawback

You must give us written notice of your intention (NOI) to claim drawback before the event

that will give rise to the claim (except for accidental destruction).

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7.3 How to get this notice of intention

You can get form C&E 1178 (NOI)   -   Notice of Intention to Claim Drawback  from our website,

go to www.hmrc.gov.uk or the Excise Helpline, phone 0845 010 9000.

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7.4 Where to send the notice to?

You must send it to the Glasgow Drawback Centre. Throughout this notice we refer to the

Glasgow Drawback Centre as the ‘DC’. The NOI form gives full details of the address and

contact numbers.

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7.5 How much notice we require

You must give us at least two business days notice between the day on which the NOI is

received at the DC and the day you intend to either

despatch goods to another Member State

export goods to a destination outside the EC

warehouse eligible goods for export (or despatch), or

carry out a planned destruction (the two full business days are increased to five full business

days if the goods are to be destroyed at a place other than your normal premises).

Saturdays, Sundays and bank holidays are not business days.

Those two clear days give us an opportunity to inspect the goods.

You must hold the goods at the address specified during the period of notice (that is for the

whole of the two or five working days set out above). The day of receipt of the NOI by

the DC does not count towards the period of notice for example, if the NOI is

received at the DC on Monday, the period of notice starts on Tuesday. Please

note:where we have agreed to accept NOIs via fax, then any received at the DC

on or after 16.00 on any day, will be deemed 'received' for drawback purposes

on, the next business day.

If it is your intention to hold the goods only for the minimum period required, you should

contact the DC to confirm when the NOI was received.

If you remove goods from the address specified or carry out destructions before the period

of notice has expired, we will reject your claim.

The format for your NOI

Your notice of intention must be in the form of:

a C&E 1178 (NOI) - Notice of Intention to Claim Drawback

a photocopy of it, or

your own stationery.

If you use your own stationery you must make sure that the information is in the same order

as the form.

You must give us the required information, whatever format you use. If not, we will not

consider your claim.

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7.6 The information you must provide

You must supply us with the following information which is shown on the NOI.

Type of claim Information required

All claims Your name and address, phone and fax numbers.

  The nature of your business.

  The address of the premises at which the goods will be available for inspection.

  The quantity and description of goods and how they are packaged.

  The amount of duty paid on the goods.

  The name and address of the owner of the goods.

  The name, address and VAT number of the person who supplied the goods to you.

If you intend to…

you must tell us the…

destroy the goods address where they will be destroyedmethod of destruction you intend to use, and

date and time the destruction will take place

warehouse the goods

name of the authorised warehousekeeperaddress and number of the approved warehouse in the UKthe name and address of the eventual consignee if the goods are to be despatched to another EU country.

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7.7 What the Drawback Centre will do on receipt of the NOI

On receipt of a satisfactory NOI, Glasgow DC will return to you a claim form C&E

1178 (NOI)   -   Notice of Intention to Claim Drawback  containing a unique reference number

which you should:

record, and

quote on any other correspondence about your claim.

The DC will not issue the form to you until you have supplied all the required information.

You will not be able to obtain the claim form C&E 1178 from any of our other

offices.

We will assess the NOI and prior to issuing the claims form may visit to inspect the goods.

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7.8 Alternative arrangements for giving notice

If you regularly despatch, export, or warehouse goods for export, then exceptionally, we

may agree alternative arrangements for giving notice. You should contact the DC who will

consider your request.

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7.9 When you may remove the goods

When the period of notice has expired you can:

despatch

export

warehouse for export(non alcoholic liquor goods only), or

destroy or denature

the goods.

Changing the details on my NOI

If you intend to change the details on your NOI, you must tell the DC immediately. The

period of notice starts again when you give us the replacement notice. If we have issued a

form C&E 1178 (NOI)   -   Notice of Intention to Claim Drawback  then you may still use this

form for the eventual claim.

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7.10 Goods that are accidentally destroyed prior to reaching their destination

In the event of an accidental destruction (as defined in section 17) you must notify the DC

as soon as possible and take action to collect the evidence you need to support your claim

(see section 17).

The DC contact number is:

Tel: 0141 555 3341 or 3465

Fax: 0141 555 3555

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8.Submitting claimstop ^

8.1 Getting a claim form

Glasgow DC will send you a claim form C&E 1178 (NOI)   -   Notice of Intention to Claim

Drawback when they receive a satisfactory notice of your intention to claim drawback. You

will find more information about this in paragraph 7.7.

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8.2 What to do if you lose the form or it does not arrive

If you lose the form or it does not arrive then you should contact the DC who will issue a

duplicate form.

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8.3 What you must do before you submit your claim

You must:

1. Complete the appropriate boxes on the claim form C&E 1178(NOI)   -   Notice of Intention to

Claim Drawback.

2. Check the claim complies with the minimum monetary limits (paragraph 8.8).

3. Check the claim is within the time limit (paragraph 8.9).

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8.4 What to do with the completed claim form

Return the completed form to the DC along with:

evidence of the UK duty payment (see sections 8.5 and 8.6) and

where appropriate, any other supporting documents. You will find more information about

this in sections 10 to 17.

Before purchasing goods which may subsequently become the subject of a claim

for drawback, you should ensure that you are able to produce the specified

information.

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8.5 The kind of evidence of UK duty payment you must provide

If you are the original duty payer, then you should submit the original duty payment

document. This is the clearest possible evidence that goods are duty paid and will normally

be sufficient evidence. Wherever possible, you should submit this document, or a copy of it,

in support of every claim.

By original duty payment document we mean one of the following:

Validated copy 2 of W5 or W5D, W50 W6 or W6D

EX46, EX606

HO10

REDS 110 or REDS 100

A Customs Import Entry Advice

Duty Deferment Statement

Occasional Importer’s certificate of payment.

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8.6 Other evidence, if you are unable to provide the originals

You must provide evidence which demonstrates that the goods are UK duty paid, and be

able to demonstrate a clear audit trail between the goods which are the subject of the claim

and the original payment document. It may be necessary for you to gather evidence in

support of your claim from the original duty payer and/or persons in the relevant supply

chain who previously had ownership of the goods in question. The information required to

accompany the claim is:

A copy of your purchase invoice for the goods subject to drawback, and

in the form of a written schedule the following:

The name and VAT registration number of the business that paid the duty, and

Details of the original payment document – this must include the name of the document on

which duty was accounted for example, W5D, REDS 100 etc., together with the relevant

reference number and/or date as follows:

- W5, W5D, W6 or W6D – you should specify both the date and 'consecutive reference

number'

- W50 – the 'duty reference number and date' shown on Receipt Copy 3 should be quoted

- EX46 – provide the date and 'Brewers Reference Number'

- EX606 – both the period dates and 'Unique Reference Number' (URN) must be quoted

- HO10 – quote the 'period ended' time and date

- REDS 110 – specify the date of the return

- REDS 100 – show the dates covered by the return

- Customs import entry – quote both the entry number and date

- Duty deferment statement – specify the duty deferment approval number (DAN) and

the date of the statement

- Occasional Importers certificate of payment (C&E 1165) – show the 'date of receipt'

shown in the 'for official use' box.

The name, address and VAT registration number of any businesses who took ownership of

the goods between duty payment and their being purchased by you, including transaction

dates.

In specific cases, we may also make it a condition of your claim, that you supply

supplementary information in relation to product markings applied to the goods at

manufacture, or subsequent stages of the supply chain e.g. batch/lot numbers, date and

time of manufacture.

Alternative evidence

We may consider alternative forms of evidence in situations where you are unable to

provide the evidence outlined in sections 8.5 and 8.6 above. Before we will consider

alternative evidence of UK duty payment, you must be able to demonstrate that you have

attempted to obtain the evidence contained in both section 8.5 and 8.6. In addition, you

must gain written confirmation from the original duty payer that he cannot/will not supply

the evidence required. Any alternative evidence must be discussed and accepted by us in

writing, in advance of submitting claims. If you submit a claim, that is supported by

alternative evidence that has not been accepted by us, your claim will not be processed.

If any component piece of an existing arrangement changes, a new arrangement must be

drawn up.

Once an alternative evidence arrangement is reached it may be applied to all types of

drawback claims that is, despatch, direct export and where permitted, warehousing for

export.

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8.7 Amount of duty repaid

Subject to all conditions being met, we will repay the amount of duty originally paid.

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8.8 Minimum limit to the size of a claim

Individual claims must total £500 or more. However, we may allow you to schedule smaller

amounts until either:

you can submit a claim for at least £500, or

six months have elapsed and you can claim at least £50.

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8.9 Time limits on claims

Duty on the goods must have been paid not more than three years before the event giving

rise to the claim for drawback.

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8.10 Methods of payment

Our preferred option is to pay by bank transfer (BACS) and we will pay any amount greater

than £50,000 by BACS. In such circumstances we will tell you what procedures you must

follow. However, you may request payment by way of a payable order, which must be

banked within two years of us deciding that your claim is payable. It is in your own interests

to bank the payable order as soon as possible.

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8.11 Off-setting

If you are a revenue trader who regularly pays duty to us it may be possible to off-set the

amount of the claim against a duty which is due to us. If you would like more information on

this procedure you should contact the DC who will issue further details. Registered Brewers

who wish to off-set should also contact the DC.

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9.Reduction or rejection of claimstop ^

9.1 Rejection of claims

We will reject claims where:

goods have already had drawback paid on them

the claimant has failed to show that UK duty has been paid on the goods

goods are not destroyed to our satisfaction

goods fail to reach their destination

you have not complied with any of the conditions or procedures either set out in this notice

or notified by us in writing.

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9.2 What you can do if you disagree with any decision we make about your affairs

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:

the amount of an assessment

the issue of a civil penalty, or

a decision specifically connected to a claim for duty drawback.

You will usually have three options. Within 30 days you can:

send new information or arguments to the officer you have been dealing with

have your case reviewed by a different officer, or

have your case heard by an independent tribunal.

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.

Time limits in asking for a review

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.

What you must include in your request for review

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.

Independent tribunal

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.

Further information

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 by:

downloading it from our website

phoning the HMRC Orderline on 0845 900 0404.

You can also find more information about how to appeal on the Tribunals Service website at

or by phoning 0845 223 8080.

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9.3 Cancelling or recovering drawback

If irregularities come to our notice after drawback has been paid, we can assess you for the

duty.

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9.4 Important Information

You are reminded that it is an offence to submit a fraudulent claim, where HMRC identify

fraud they will take action in accordance with Civil or Criminal law as appropriate.

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10.Exports outside the EUtop ^

10.1 What you must do before you export the goods

You must give notice of your intention to the DC. You will find more information about this in

section 7.

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10.2 Procedures

You must pre-enter your goods on form C88 Single Administrative Document. Full details on

the procedure for pre-entering goods and the completion of form C88 can be found in

volume 3 of the Customs Tariff.

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10.3 Supplier of the goods

If you are the supplier of the goods the removal documents must reflect this by showing

your name as the consignor.

You may submit your claim when you hold all the appropriate documents detailed in 10.4

below.

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10.4 The documents you must submit with your claim

The completed claim must be accompanied by evidence of payment of UK Excise duty:

detailed evidence of UK duty payment in accord with sec 8.5, or

a copy of any alternative evidence agreement (see section 8.6, and either

copy 3 of the Single Administrative Document certified at the office of exit from the

Community, or

a certified C&E 132 (an international Customs Declaration available from the Post Office), as

appropriate.

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10.5 Record of exports

You must also keep records in accordance with Notice 206 Revenue traders records, this

includes a list of your exports, together with appropriate export documentation and

evidence of payment.

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11. Postal exportstop ^

11.1 Special form for postal exports

You must complete form C&E 132 Certificate of posting of goods delivered from a Customs

and Excise postal depot or from an exporter's premises for exportation by post, (an

international Customs Declaration available from the Post Office) and label each package

with form C&E 83A. Present the package and form C&E 132 to the Post Office where a

certificate of postage will be given. You must present this certificate with your drawback

claim.

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11.2 Commercial equivalent to form C&E 132

Provided that each parcel is issued with a unique identification number, we will accept a

commercial equivalent of the form C&E 132 which shows an audit trail of the unique

identification tracking numbers assigned to each parcel. If you wish us to consider your use

of such a system you must contact the DC for further details.

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11.3 Submission of claim

There is a limit to the size of claim HMRC will process, this is described in section 8.8. When

you are claiming drawback for postal exports you may schedule smaller amounts until

either:

you can claim for at least £500, or

six months have elapsed and you can claim for at least £50.

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12. Despatches to EU Member Statestop ^

12.1 Moving UK duty paid goods to another Member State

You cannot move UK duty paid goods directly for storage in a tax warehouse in another

Member State.

Duty paid goods which are moving within the EU must be accompanied by:a Simplified

Administrative Accompanying Document (SAAD),. We recommend that a document showing

that duty has been guaranteed in the Member State of destination travels with the goods

until they reach their ultimate destination. You may, however, ‘warehouse for export’ non

alcoholic liquor goods (see sections 13 and 14) in a UK Excise Warehouse and subsequently

move the goods under duty suspension arrangements (see Notice 197 Excise goods:

Receipt into and removal from an excise warehouse of excise goods) to a tax warehouse in

another Member State.

You may return faulty/unwanted non alcoholic liquor Excise goods to your supplier under

duty suspension arrangements using the warehousing for export arrangements.

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12.2 What you must do before you despatch the goods

You must give notice of your intention to DC. You will find more information about this in

section 7.

Before despatching goods, you must hold evidence that:

duty in the Member State of destination has been paid or guaranteed to the satisfaction of

that fiscal authority, or

duty is not payable on the goods in the Member State of destination.

This evidence should accompany the Excise goods until they arrive at their destination.

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12.3 Securing duty in the other Member State

Usually the recipient will guarantee payment. You may secure the duty yourself (provided

that the fiscal authority in the other Member State allows or requires you to do so). If you

are unsure of the requirements in the Member State of destination, we suggest that, in the

first instance, you discuss this with your customer or customer’s agent as appropriate.

Another alternative would be to approach the fiscal authority, for that Member State,

directly before you despatch the goods. Each EU fiscal authority will have a web page which

should be easily located through normal internet search engines.

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12.4 Movement guarantee

As the goods are duty paid a movement guarantee is not required.

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12.5 Forms to complete

You must complete an SAAD.

Alternatively you can use commercial documents such as:

invoices

delivery notes, or

freight documents

provided that these contain the same information as the SAAD, including comparable box

numbers.

You must not amend an SAAD.

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12.6 Marking commercial documents

Commercial documents must be conspicuously marked ‘Simplified Administrative

Accompanying Document (Excise goods) for fiscal control purposes’.

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12.7 Documentation you must submit with your claim

The completed claim (see section 8) must be accompanied by:

(a) evidence of payment of UK Excise duty (see 8.5)

(b) a copy of any alternative evidence arrangement (see section 8.6), and

(c) the duty accounting document, showing that duty has been collected in the receiving

Member State, issued by the fiscal authority,or confirmation that the goods are not liable to

a positive rate of Excise duty in that Member State

(d) Copy 3 of the SAAD with section b on its reverse fully completed by the recipient . Where

commercial documents such as invoices are used as an SAAD they must contain the same

elements of information as the specimen copy contained in Annex 1 of Commission

Regulation 3649/92.

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12.8 Recording your despatches

You must keep a list of all your despatches to other Member States. The list must identify

separately those consignments for which:

certificates of receipt are outstanding, or

certificates of receipt have been obtained.

You are required to keep these details and evidence of payment for the goods and the

records and accounts in accordance with Notice 206 Revenue traders records.

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13. Warehousing for export of non alcoholic liquor goods – prior to export to third countries or despatch to another Member state

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13.1 What we mean by 'warehousing for export'

‘Warehousing for export’ allows claimants to place permitted Excise goods in an Excise

warehouse and reclaim the duty paid on them. The goods must then be:

despatched to another Member State in duty suspension, or

exported to a third country.

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13.2 Goods that may not be warehoused for export

Alcoholic liquors, chargeable with duty under the Alcoholic Liquor Duties Act 1979, may not

be warehoused for export after 31 May 2009. Examples of products which may no longer be

warehoused for export include:

alcopops

beer

wine

made wine

cider

spirits such as gin, vodka, whisky, whiskey etc.

Please note: Normal warehousing for export rules apply to those alcoholic liquors

warehoused for export prior to 1 June 2009.

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13.3 Registration

There is no requirement for owners of drawback goods to be registered. Drawback goods

are not relevant goods as defined in the Warehousekeepers and Owners of Warehoused

Goods Regulations 1999.

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13.4 Submitting a Notice of Intent

You must give notice of your intention to warehouse goods for export and claim drawback.

You will find more information about this in section 7.

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13.5 What you must do before you deposit the non alcoholic liquor goods in warehouse

You must create a… on…

warehousing advice note, in triplicate headed notepaperdelivery note, orother commercial documentation.

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13.6 Information you must provide on the warehousing advice note

It must contain all of the following information:

1. The authorized warehousekeeper's name.

2. Address of the receiving warehouse.

3. Your own unique number identifying the advice note.

4. Your name, address and VAT Number (if not pre-printed on document).

5. Description of the packages and goods, including the Commodity Code Number, the

value of the goods and, for alcohol only, the quantity and strength.

6. Expected date of export and destination.

7. Description of transporting vehicles and the identifying numbers and types of seals

applied (if any).

8. A signed declaration.

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13.7 Declaration

When goods are warehoused for export, two declarations are required, the first is to

accompany the goods to warehouse:

'Goods for Export or despatch to another Member state

The non alcoholic liquor goods listed above are to be warehoused for export/despatch and

will be the subject of a claim for repayment of Excise duty in accordance with the conditions

set out in The Excise Goods (Drawback) Regulations 1995. They may not be sent for home

use or sold to any person in warehouse without prior written permission of HM Revenue &

Customs.

Signed ................................................'

The second is a statement from the warehousekeeper to acknowledge receipt of the goods:

'Certificate of receipt

The non alcoholic liquor goods listed above were received into this warehouse

on ........................ under stock account reference ........................ for the purpose of

subsequent exportation or despatch. They may not be sent for home use or sold to any

person in warehouse without prior written permission of HM Revenue & Customs.

.................................Warehousekeeper'

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14. Warehousing for export of non alcoholic liquor goods – procedures for export to third countries and despatch to other Member States

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14.1 What you must do when the period of notice has expired

You must send the goods and two copies of the warehousing advice note to the warehouse.

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14.2 What the warehousekeeper will do

The warehousekeeper will:

receipt both copies of the warehousing advice note, noting any discrepancies

accept the goods into the warehouse and enter them into his record, and

return one copy to you.

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14.3 Submission of claim

You may submit your claim when you hold the warehousing advice note. You must adjust

your claim to account for any discrepancies noted by the warehousekeeper, and then

submit:

the claim form C&E 1178 (NOI) - Notice of Intention to Claim Drawback

evidence of UK duty payment (see sec 8.5)

a copy of any alternative evidence agreement (see section 8.6) and

the receipted copy of the warehousing advice note

to the DC.

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14.4 Despatch of the goods within a specified time limit

You must despatch or export the goods within six months from the date you submitted the

claim to Glasgow DC.

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14.5 Holding evidence of export or despatch

You should obtain for your records a document from the warehousekeeper certifying that

the appropriate evidence of export is held at the warehouse and is available for inspection.

This document must state the following:

for goods despatched to another Member State, a document containing the following

certificate:

I certify that copy 3 of the Administrative Accompanying Document, relating to the despatch

of ......................... (give details of goods) ......................... stock account

number ..............................., endorsed by the warehouse of receipt is held at this

warehouse and is available for inspection.

............................... Warehousekeeper.

or

for exports to non Member States, containing the following certificate:

I certify that commercial evidence relating to the exportation of .................. (give details of

goods) .................. stock account number ..............................., is held at this warehouse and

is available for inspection.

............................... Warehousekeeper.

You should retain the appropriate receipt in your records.

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14.6 What you must do if the goods are still in warehouse at the end of the six month period

You must immediately contact the Excise Helpline on 0845 010 9000.

We may permit you to remove the goods from the warehouse, to home use upon repayment

of the drawback. In such circumstances, we will require both:

evidence showing that an export order existed but has been cancelled, and

the stock account number of the goods concerned.

If we are satisfied that your request is genuine, you must repay the drawback which you

have received. We will issue accounting instructions at the time. The warehousekeeper

must not use the W5/W6 payment system to repay the drawback.

If we are not satisfied that your request is genuine, we will tell you what procedures you

must follow.

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14.7 Confirmation that you have repaid the drawback

We will supply written confirmation of receipt of the drawback repayment. You must show

this receipt to the warehousekeeper, who may require a copy for his records prior to

removing the goods.

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15. Distance sellingtop ^

15.1 What we mean by 'distance selling'

Distance selling is the supply and delivery of duty paid Excise goods direct to private

individuals in another Member State.

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15.2 Paying the Excise duty due

You as the person despatching the goods are responsible for paying the Excise duty due

either directly to the authorities in that Member State, or through a Tax Representative.

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15.3 Claiming drawback if you are distance selling in the EC

You must contact the Excise Helpline on 0845 010 9000. We will then tell you what you

must do.

Generally we will require you to keep records containing comprehensive details of all

distance selling transactions. The records must show that the Excise duty in the recipient's

Member State was guaranteed before despatch of the goods and subsequently paid.

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15.4 Procedures

We will discuss the procedures to follow when you contact our Excise Helpline about

submitting drawback claims and issue any specific instructions. In general the procedures

are similar to those for the despatch of goods to the EU. You will find more information

about this in section 12.

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15.5 Complying with Fiscal Marks/Duty Stamps requirements when Distance Selling

See sections 3.4 and 3.5.

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16. Planned destructionstop ^

16.1 What you must do before you destroy the goods

You must notify Glasgow DC of your intention to claim drawback. You will find more

information about this in section 7.

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16.2 What happens if you decide that my proposed method of destruction or denaturing is not satisfactory

We will tell you in writing. If you decide to continue with your claim using another method

which is acceptable to us, you must give us a further:

two days notice if you wish to destroy the goods in your normal business premises, or

five days notice if you wish to destroy the goods in other premises

prior to the destruction taking place. ‘Days’ excludes Saturdays, Sundays and bank

holidays.

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16.3 Proof that the goods have been destroyed

You will need to keep records and evidence of disposal, for example stock and disposal

records of any residual products, environmental permissions and permits, incineration

receipts. We may also attend the destruction or denaturing site during the process. If

someone else carries out the destruction on your behalf you remain responsible for ensuring

compliance with all of our procedures.

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16.4 Submission of claim

You may submit the claim form C&E 1178 (NOI)   -   Notice of Intention to Claim Drawback  to

the DC when the destruction or denaturing has taken place. You must submit the certificate

of destruction signed by a responsible official of the company involved and it must specify

the actual goods destroyed.

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17. Accidental destructionstop ^

17.1 Circumstances in which you can claim

It is your responsibility to protect your goods by insuring them against normal risks. As a

result, claims for accidental destruction will only be considered in the following exceptional

circumstances:

We will only consider claims… for example… or where the goods were

where the accidental destruction falls outside the scope of normal insurance cover due to the nature of the event which caused it

civil commotionriotterrorismwarexplosion orearthquake

exported and were accidentally destroyed in the UK after leaving the premises where they were available for inspection, orremoved to a warehouse for export when those goods are eligible for warehousing for export.

Reporting an accident

You should inform Glasgow DC at the earliest opportunity as any undue delay could result in

your claim being rejected or reduced as you have not complied with our requirements.

Report the accidental destruction by phoning and confirm by fax or in writing stating all of

the following:

1. Your name and address, phone and fax numbers.

2. If appropriate, the NOI number.

3. The nature of the business.

4. Details of the destruction, including the time and place.

5. The name and address of the person who supplied the goods to you.

6. The name and address of your customer, if relevant.

7. The description of the goods, and whether packaged or in bulk.

8. The amount of duty paid or a provisional estimate if that cannot be immediately

ascertained.

Remember, you will have to satisfy us that the goods have not been and will not be

consumed in the UK. Be prepared to show that you secured the goods both before and

immediately after the accident.

Evidence needed to support your claim

You need to satisfy us that:

the accident that resulted in the claim was outside the scope of normal insurance cover, and

you took adequate measures to safeguard the goods before and after the accident.

We also require evidence that your claim is genuine, for example

copies of police reports

statements from witnesses (for example the driver, security personnel, onlookers, third

parties), or

correspondence with insurance companies (for example, insurance assessor’s reports).

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17.2 Submission of claim

You may claim as soon as you can quantify the claim. You will find more information about

this in section 8. As well as evidence of duty payment you must send copies of your

supporting evidence.

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18. Visits by HM Revenue & Customstop ^

18.1 Visits to verify claims

We will visit you from time to time to verify your claims. When we visit you must:

admit us to your premises at any reasonable time

produce records and goods for inspection

provide facilities for examining and taking account of the goods

allow samples to be taken, and

observe health and safety requirements.

We may also decide to witness destructions. If you are carrying out (or someone else is

carrying out on your behalf) a destruction at remote premises, you must ensure that any

request by us for access to witness the destruction is granted. You will find more

information in section 16.

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18.2 Responsibility for the safety of our officers

While our officers are on your premises you must ensure their safety at all times.

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18.3 Appointments

We will normally make an appointment but we may decide to visit without a prior

appointment. In such circumstances you must still comply with the requirements set out in

paragraph 18.1. All our officers carry identification and will show these when they arrive.

During our visit we will wish to see your business records, these include:

imports, and

despatches and exports.

We can also examine:

profit and loss trading statements

management accounts and reports

balance sheets

internal and external auditors reports, and

any other record maintained for a business purpose.

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19. Glossary

Term Description

Alcohol In this notice the term includes spirits, beer, wine, made-wine, cider and perry

CHIEF Customs Handling of Import and Export Freight.

Denaturant A substance which on its own or in conjunction with other substances renders alcohol unsuitable for human consumption.

Despatch Goods consigned from the UK to a place to which Council Directive 92/12/EEC applies.

Duty Excise duty.

Eligible goods Excise goods on which Excise drawback may be claimed.

EU European Union.

Event The date of despatch, export or destruction.

Excise Duty For the purpose of this notice, an indirect tax on certain goods, for example, beer, wine, made-wine, cider, perry, spirits, mineral oil, cigarettes and other tobacco products. Both UK-produced and imported goods are subject to Excise duty.

Excise goods Goods liable to Excise duty.

Excise warehouse A place approved by Customs for the holding of goods on which Excise duty and/or VAT are suspended.

Export Goods consigned from the UK to a destination outside the EU (this includes the Channel Islands).

Member State A Member State of the European Union.

Mineral oil Petroleum oil, coal tar and oil produced from coal, or shale, peat or any other bituminous substance and all liquid hydrocarbons, but not hydrocarbons, bituminous or asphaltic substances which are:

solidor semi-solid at a temperature of 15°C orgaseous at a temperature of 15°C and under a pressure of 1013.25 millibars.

Non Alcoholic Liquor Goods

Goods which are not chargeable with duty under the Alcoholic Liquor Duties Act 1979

OMS Other Member State of the European Union.

Recipient In the context of this notice, a person who receives duty paid Excise goods.

Removed The term includes goods despatched to another Member State of the EU and goods exported to a destination outside the EU.

Revenue Trader In the context of this notice, anyone carrying on a trade or business concerned with the buying, selling, importation, exportation, dealing in, or handling of Excise goods, and the financing or facilitation of any such transactions or activities. You will find a full definition in CEMA section 1.

SAAD Simplified Administrative Accompanying Document.

SAD (C 88) Single Administrative Document.

Satisfactory quality

As defined by Section 14(2) of The Sale of Goods Act 1979 as inserted by Section 1 of The Sale and Supply of Goods Act 1994.

Supplier In the context of this notice, a person who supplies duty paid Excise goods.

Tariff Import Tariff of the United Kingdom. This is available from Her Majesty’s Stationery Office

Tax representative

A person who must be established in the Member State of destination and approved by the tax authorities of that Member State to receive Excise goods under distance selling arrangements.

Tobacco products These products include:

cigarettescigarshand-rolling tobaccoother smoking tobacco, andchewing tobacco.

UK United Kingdom.

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How we use your information

HMRC 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:

check the accuracy of information

prevent or detect crime

protect public funds

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 HMRC 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.