Excise Warehousing

An Excise Warehouse allows for the storage of goods where excise duty is suspended. Duty only becomes crystallised and payable when the goods are released for consumption in the UK.

Because excise rates are significantly higher than standard customs duties, HMRC views these facilities as high-risk environments. Success in this sector depends on a robust Duty Point visibility, a system that ensures every drop or gram of product is accounted for, from arrival to final dispatch.

What are the benefits?

• Indefinite Duty Suspension: Hold excise-taxable goods without paying duty or VAT until the moment they enter the UK market.

• Cash Flow: Prevent the massive cash-flow drain caused by paying excise duties at the point of import or production.

• Trading Flexibility: Facilitate the movement of excise goods between tax warehouses (under EMCS) across the UK and internationally.

• Regulatory Prestige: Holding an excise authorisation is a Gold Standard of compliance that enhances your business's reputation with HMRC and global partners.

• Strategic Buffer: Maintain large inventories of product to meet market demand without the upfront tax liability of a standard commercial warehouse.

The Technical Mechanics

Managing an excise environment requires more than just site security, it requires a comprehensive audit trail within your business. We provide the technical support to ensure your facility meets the stringent requirements for W1 (Warehousekeeper) and REDS (Registered Excise Dealers and Shippers) status.

Our technical oversight includes:

• Authorisation Management: We lead the end-to-end application process, drafting the complex business cases and financial solvency proofs required for HMRC approval.

• Control Framework Design: We architect the ‘Duty Point’ controls and stock-record systems required to prevent unauthorised removals’, which are the number one cause of excise penalties.

• EMCS & SEED Integration: We provide technical guidance on the Excise Movement and Control System (EMCS), ensuring every customs document is correctly raised and discharged.

• Independent Audits: We conduct rigorous internal audits that mirror HMRC’s own inspection protocols, identifying revenue risks before they become liabilities.

• Ullage & Loss Analysis: We establish the technical procedures for managing allowable losses (such as evaporation or leakage) to ensure your stock records always align with physical reality.