Exporting spirits under bond
A question on exporting spirits under bond:
I have a client in the Cape Verde Islands who is interested in purchasing UK produced spirits and shipping by airfreight to a number of retail outlets.
Is it possible to do this under bond? The Cape Verde Islands do not have any special EU trade agreement, nor do they charge excise duty or have bonded warehouses. Spirits are sold freely by any retail outlet and much merchandise finds its way in from exporters such as Italy without customs intervention – so prices are very low.
Thanks for your question. Yes, it’s perfectly possible to export alcohol under bond to a destination such as Cape Verde. In this situation, where the destination country is non-European, the process requires two declarations to HMRC.
1) EMCS – This declares a movement of goods under bond from your warehouse to the UK port, UK airport or European Office of Exit. As you say, there are no bonded warehouses in non-European destinations so that’s why the exit point from Europe is used.
2) NES – All non-European shipments must be declared to HMRC via the CHIEF/NES system. In this scenario it is imperative to declare the ARC number from the EMCS in Box 40 as this will link the closure of the NES to the EMCS and release your duty viability.
Hopefully that is enough information but please do not hesitate to contact me if you require further clarification. In case helpful to you we have a system which allows the transmission of these messages to HMRC and links the ARC to NES box 40 automatically to prevent this key information being missed.
Office: +44 (0) 1749 345007
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