TPD8030 - Products dutied by
weight: UK manufactured cigars: duty calculated on 'target'
To overcome the problems outlined above, duty may be
calculated on the manufacturers’ ‘target’ net
weights, rather than the actual net weights of the cigars
concerned. This method of determining the net weight for duty
purposes was agreed with the two UK cigar manufacturers in 1992.
The details of the scheme are as follows.
- For the purposes of the scheme, each brand
or size of cigar must be treated separately and the manufacturer
must set a ‘target’ weight for each brand of cigar. His
production should be geared towards achieving the stated target
- Please note that if cigars of different
dimensions or different ‘intended weights have the same brand
name, they should be treated as different brands for the purposes
of this scheme.
- Cigars of the same brand may be packed in
more than one size of pack. If the packing machines are fed by
different production lines, you should treat the different pack
sizes as separate brands for the purposes of this scheme.
- The manufacturer will make daily test
weighings. You must agree the points at which the samples for
weighing are drawn. All daily test weighings will refer
specifically to the cigar brand in question. (Cigars of different
brands or sizes within a brand cannot be weighed together nor can
the results for different sizes or brands be grouped together or
- The duty should be calculated on the basis
of the manufacturer’s target weight for the brand in
question, provided that the test weighings show an annual average
variation of no more than 0.5 per cent above or below the target
- This 0.5 per cent weight tolerance applies
to individual brands of cigars. It must not be applied to grouped
or combined or weighted results covering two or more brands or
- Test weighings within the annual 0.5 per
cent tolerance should not result in any calls for additional duty
nor in any repayment to the manufacturer.
- An annual average test weight, for any
individual brand, which falls outside the 0.5 per cent tolerance,
should result in either a demand for or a repayment of duty. The
amount of duty demanded or repaid will be the difference between
the annual average weight and the manufacturer’s target
weight for the quantity of product cleared during the year. The 0.5
per cent tolerance will not apply when calculating the demand or
- Daily or weekly test weighings, which
persistently give results above or below the ‘target’
weight, should result in the manufacturer adjusting the
- Any average annual results outside the 0.5
per cent tolerance should result in the manufacturer adjusting the
‘target’ weight. This (together with the preceding
bullet point) should mean that demands for repayments of duty
should be rare and not repeated for the same brand.
Please note that this method of determining the net weights is
based on a voluntary agreement reached with the trade for the
benefit of both trade and control staff. It is essential that you
agree the details of your trader’s system of weighing and
duty calculation. If faced with any disputes or insurmountable
difficulties, you may require that the trader calculate duty on the
actual weight of the cigars.