Excise Movement and Control System (EMCS) EMCS FS1 is now fully operational, are you prepared for the next change, FS2! Traders are successfully using Webdecs for all aspects of EMCS in the UK under FS1. Our system "Webdecs" has been recognised by HMRC for this purpose; http://www.hmrc.gov.uk/ebu/emcs-online.htm Our users also recognise our preparedness for EMCS: Siobhán MacLennan, HMRC Specialist, for Chivas Brothers said, “We have used the services of e-Customs for some years; this most recent development has been implemented with the same precision and attention to detail as we have come to expect from this organisation.  By providing a user-friendly and manageable system, e-Customs alleviated many of the concerns we had about such a huge development in the excise industry.  The switch from paper to electronic declarations was a major undertaking for all involved and e-Customs were a valuable source of information and support during the development stages.  The smooth implementation of EMCS has only strengthened our confidence in e-Customs.” EMCS Overview EMCS is a computerised system for monitoring movements of excise goods under suspension of excise duty within the EU. It replaces the paper control document, the Administrative Accompanying Document (AAD), with electronic messages from the consignor to the consignee via a central EU system fed by and feeding to the computer systems of the authorities in each Member State. EMCS: When and how? 1 April 2010: EMCS became operational in the UK for receipts only; 1 April to 31 December 2010: This was a migration period, dual running of paper and electronic 20 December 2011: EMCS became available in UK for dispatches of excise goods under duty suspension; 1 January 2011: EMCS compulsory for relevant movements of excise goods; 1 January 2012: enhancements including splitting of energy goods consignments and rejection pre arrival EMCS means • Simplification of procedures; • Reduced paper administration; • Secure movement of goods (Traders' data will be checked before the goods are dispatched); • Quicker release of the guarantee for traders (evidence that the goods arrived at their destination will arrive faster and       safer), and • Effective monitoring, with real time information and checks during movements. This was a major development for those who trade in alcohol and alcoholic beverages, tobacco or energy products. EMCS Roll out EMCS has been delivered in stages, rolled out as detailed below Phase 1 – (Known as FS0) 1st April 2010 This phase was essentially "ground zero" ensuring that all Member States could electronically write off movements of excisable goods commencing in other Member States. The process allows for the download of the e-AAD in advance of goods receipt. Once received a "Report of Receipt" is returned electronically stating either the full receipt of the goods, or identifying discrepancies. The Report of Receipt enables the Consignor to finalise the movement concerned for Customs control purposes. Phase 2 – (Known as FS1) – January 2011 in the UK Under Phase 2 all transactions previously requiring a paper AAD had to be be cleared using EMCS. There are some simplifications in the UK, primarily for inter company movements, where the current paper processes will be allowed to remain in place. Phase 3 – (Known as FS2) - December 2011 / January 2012 This will be an enhancement of the system to cater for split consignments, and all the other "complicated" issues missing from Phases 1 and 2! In the UK HMRC are only implementing the ability to reject or alert discrepancies in advance of arrival of a movement and the splitting of “energy” products. HMRC have confirmed that splitting will not be available via their Portal, however we will have this functionality within our EMCS system for the benefit of our users.   e-customs and EMCS  Benefits As with the other elements of Webdecs, EMCS is completely web based. Therefore there are no costs of installation or hardware maintenance Set up achievable within hours subject to enrolment on the Government Gateway Access can be at warehouse keeper or site level Data can be uploaded from commercial systems and / or keyed with the aid of standing data and template declarations. Data can be validated before submission to HMRC Automatic SEED Validation For Receipts, documents can be printed ready for checking in at premises. For Dispatches, e-ADs can be automatically generated to accompany the goods Easy but extensive search functionality Fallback process automated with full recovery capability after HMRC system downtime. Full Management reporting including Excise Duty Calculations.      Issues arising from start of live operations Registration Clients of ‘Webdecs’ wishing to receipt and ultimately dispatch goods under EMCS must register with HMRC on the Government Gateway. Please note that where you are a warehousekeeper you must register at the "top level", and not at a specific warehouse level. This means that EMCS is an all or nothing process; every inbound consignment will be delivered electronically to the warehousekeeper, the Authorised Consignee, and we will display the consignments according to the place of delivery i.e. the specific warehouse. In order to receive the messages e-customs® will need to be shown by users as an "assistant" on the Government Gateway configured for EMCS only. The user reference and password allocated will need to be communicated to us so that we can poll for your messages. Excise measures It is becoming apparent that traders in other Member States are confused about the "Unit of measure" they need to declare ; this has a knock on effect when making the report of receipt. For wines, beers and spirits the unit of measure is bulk litres at 20° C. For tobacco products it is either kg of tobacco, or 1000s of finished product For Energy Products it is either KGs or litres at 15° C.    Future Updates We continue to develop our Excise Warehousing solution which will also allow for Registered Consignee \ Registered Commercial Importers and integrate with our EMCS module. We will continue to provide regular updates on the project. If you would like to be added to our EMCS contact list and receive the updates, please e-mail the EMCS Project by clicking here EU EMCS News can also be found at http://ec.europa.eu/taxation_customs/taxation/excise_duties/circulation_control/index_en.htm