AIR4170 - Alcoholic Ingredients Relief: Technical guidance: Is duty payable on spirits based flavours, essences etc received from other EC Member States?

No. It was agreed at EU Excise Committee that movements of essences under CN code 3302 intended for the manufacture of eligible products (soft drinks and foodstuffs) would be exempt from duty. This aligned with other Member States’ practices, and removed what is perceived as a significant burden on the trade. It also, arguably, correctly implemented the exemption set out in the Structures Directive 92/83/EEC Article 27(1)(e).

In addition, the CN Code for essences intended to be used in the manufacture of alcoholic drinks (formerly 2208 10 00) has ceased to exist. Instead, the Committee has agreed to use CN code 3302 for essences used for both soft drink/food use and alcoholic drinks manufacture.