AIR4180 | Alcoholic Ingredients Relief: Technical guidance: What about spirits based essences/flavourings manufactured in the UK for distribution within the UK?

Essences are produced in excise warehouse by the mixing of ethanol (spirits) with flavours, syrups and other substances. When the product has been manufactured into its final state, it will be deemed to have reached a stage where formal controls need not be applied. Accordingly, any control/audit measures should be targeted, for example, at the spirits receipt and production stages. Removals of the finished essence do not need to be accompanied by a W81. We expect that movements will be entered in the trader’s normal business accounts and the delivery receipted.

NB - Traders who wish to use essences to produce drinks do so on the basis that the concentrate as a “raw” material will have no duty liability for movement purposes. The end product will be dutiable.