The relationship between APPA approvals and excise warehouses

HMRC have produced a useful summary of the relationship between APPA approvals and excise warehouses. This covers payment dates, duty deferral, VAT treatment and what happens if you choose to operate both systems.

 The fundamental principle of the APPA is that any person producing alcoholic products must hold an APPA covering all premises on which production occurs. The excise warehousing regime is not limited to alcohol. Whilst the focus of the Alcohol Duty Reforms is the production of alcoholic products, there are some consequences for alcoholic product producers with warehouse approvals.

 As a result of the reforms, there is no longer any specific need for UK producers of alcoholic products to hold a separate excise warehouse approval. An APPA can authorise producers to produce and hold alcoholic products in duty suspension on authorised premises, as well as to move alcoholic products in duty suspension. An APPA may also authorise holding of third-party produced alcoholic products in duty suspension. HMRC has not removed excise warehouse approvals from approved producers during the implementation of APPA. Business can choose to retain or cancel any excise warehouse approvals they hold based on their own business needs.