The excise duties sector can be categorised into the following groups:
- Alcohol and alcoholic drinks;
- Tobacco Products;
- Hydrocarbon Oils.
Currently, the biggest issues for many excise companies are diversion frauds and the cost of guarantees; and the high rates of excise duty. Excise companies are highly regulated by Customs by the use of approval and registration of premises; marking of products; prior notification; and securities and guarantees. For example, retailers and suppliers developing international e-commerce strategies involving wine and tobacco face very complex cross-border issues.
Excise duty planning opportunities and compliance issues can occur at various stages in the supply chain and not just at the time of production of the excisable goods or when they leave the excise duty suspended bonded regime. For example, we advise manufacturers of cosmetics, chemicals, pharmaceuticals, foodstuffs, soft drinks and others who use alcohol in their production processes. As an example, we have advised on ways of receiving spirits free of duty in the manufacture medicines, and on the recovery of duty paid in the past on such spirits.
We can help excise clients reduce compliance costs and excise duty payments by:
- Effective use of deferment, drawback and bonded warehousing;
- International cross-border excise supply chain cost minimisation;
- Review of procedures;
- Negotiation with Customs including settling disputes, assessments, penalties and appeals;
- Fraud recognition and risk management.