HCOTEG132000 - Central Accounting Points: New simplified duty deferment guarantee arrangements (EPSS)

Introduction

Simplified Duty Deferment Guarantee Arrangements which can reduce the security level required to nil have now been introduced. The Excise Payment Security System (EPSS) replaces the Excise Duty Guarantee system.

The Customs and Excise Management Act 1979, Section 127A provides for the Commissioners of HMRC to make provision for the excise duties on prescribed goods to be deferred subject to conditions or requirements imposed under Regulations or by the Commissioners. The Excise Duties (Deferred Payment) Regulations 1992 provide that security for the duty shall be required in such form and manner as the Commissioners may require.

From 1 February 2007, anyone making deferred payments of excise duties when goods (alcohol, tobacco and oils) are removed to the UK home market from an excise warehouse or upon importation will be required to provide an excise duty guarantee.

However traders may become authorised to defer or make payments without a guarantee, providing that they meet the eligibility and authorisation criteria. This will be the existing Simplified Import VAT Accounting (SIVA) criteria, with an additional check on excise debt history.

The criteria will be relaxed for those trading beneath the VAT registration threshold. Eligibility will be a requirement of 3 years approval or registration in an excise payment regime with authorisation checks made only on excise return, payment and debt history and offence history.

Application for the New Arrangements

If traders already hold a guarantee to defer payments of excise duty, then they may now apply for authorisation. Application forms are available to download from HMRC’s internet site, on the ‘FAQs’ page accessible from the ‘Excise & Other’ homepage.

Once completed the Application form should be sent to:

EPSS Authorisation Team
28 Guild Street
Aberdeen
AB11 6GY

The EPSS Authorisation Team may be contacted on 01244 844618

Simplified Import VAT Accounting (SIVA)

Where traders are currently deferring import VAT, they can also apply to be authorised to reduce the level of guarantee for import VAT purposes.

Traders can obtain an Application Form, from either the SIVA website or by contacting the National Advice Service on 0845 010 9000.