TPD18085 | National Advice Service Enquiries - Tobacco for heating

From 1 July 2019, a separate excise duty category will be introduced into the Tobacco Products Duty Act 1979 – ‘Tobacco for heating’ (TfH).

Tobacco for heating may be reffered to as ‘heated tobacco products’ or ‘heat-not-burn’.

A duty rate of £234.65 per kg will be applicable to TfH products with effect from 01 July 2019. Please see Tobacco Products Duty - GOV.UK page for most recent rates.

Tobacco for heating is tobacco that is processed in a way that can be heated but not burned, as in normal tobacco products, which then produces or flavours vapour.

The introduction of this category replaces any temporary duty classification HMRC has provided on the treatment of such tobacco.

HMRC’s forms and IT systems will be updated with a new tax type code, exclusively for the recording of TfH declarations, however until further notice, all TfH liabilities should be declared to HMRC on the current duty returns under the Hand-Rolling Tobacco duty rate and tax type (619).

In addition, tobacco manufacturers and importers must maintain records capable of verifying the proportion of their hand-rolling tobacco declaration which relates to TfH duty. These records should be retained and available to HMRC if requested.

Tobacco for heating is not an eligible product for drawback of excise duty when it is despatched to another a member state in the EU.

Passengers travelling to the UK who bring in tobacco for heating products will need to be aware of the duty reliefs for tobacco for heating products Bringing goods into the UK. Guidance on tobacco for heating can be accessed on GOV.UK at Excise Notice 476: Tobacco Products Duty and the Tobacco Products Duty Manual.

If you are still unsure about tobacco for heating, contact the Tobacco Team in Ralli Quays.