While importing or exporting goods like tobacco, alcohol, narcotics, etc., you must abide by several checks to do trade. Previously, it took a lot of work for businesses to do the excise trade. The EU has introduced a new system named the Excise Movement Control System (EMCS). This system has created a pace to manage the trade of such goods smoothly.
In this blog, we will cover most aspects of how EMCS benefit trading and is profitable to businesses. EMCS users must register before producing, transporting and delivering excise goods. It is an important tool for preparing taxation and transferring excise goods within the European Union.
Excise Movement Control System is a computerised transit system that controls, monitors,r and manages the movement of excise goods within the EU. Customs officials developed this system to regulate the flow of goods.
The businesses that produce goods like tobacco, alcohol, and luxury items must register themselves under EMCS. This will accredit the companies to report about the movement of their goods to customs authorities. EMCS UK can’t be utilised for energy products or movements which qualify for the use of simplified procedures instead.
This system is designed to manage the flow of excise goods inside the EU and maintain the report about the quantity of excise goods. Smooth transportation of excise goods using electronic declaration means. It also provides a single point of contact to keep in consideration regarding goods being travelled. One important thing to undermine here is that you have to enrol and use EMCS even if you are using commercial or in-house software to record the movements.
Excise products are monitored in the EMCS system through the use of an electronic Administrative Document (eAD). This is how it operates:
HM Revenue and Customs (HMRC) is the government organisation responsible for trade, import and export in the EU and outside. Meanwhile, EMCS is an electronic system that maintains records and makes excise goods movement digitally advanced. Both of these have a strong connection in terms of the trade of excise goods, especially inside the European Union.
HMRC makes use of the EMCS data to ensure that excise duty is properly accounted for and paid. Customs agents may use the technology to track the flow of commodities in real-time and spot any questionable behaviour. Excise duty laws must be enforced, and HMRC has the authority to penalise businesses for failing to follow the EMCS guidelines.
In conclusion, there is a strong connection between HMRC and the EMCS since HMRC utilises the system to track and enforce excise duty laws. The EMCS is a crucial instrument for HMRC to make sure that excise duty on products transiting inside the European Union is accurately accounted for and paid.
The EMCS system undergoes continuous evolution, with ongoing development of new features and integrations. Here are some exciting possibilities for the future:
Excise trade, which used to be a hassle in previous years regarding protection, has now become secure. The EMCS document is fully equipped with all the suitable steps and measures to make the trade within the EU of excise goods efficient. The EMCS offers traders, customs agents, and HMRC several advantages, including higher compliance, decreased fraud risk, improved accuracy, and efficiency gains.
The EMCS is a crucial instrument for maintaining effective excise product taxation and regulation inside the EU, assisting in fraud prevention and safeguarding public health and safety. Due to these effective approaches, the Excise Movement has become a success for both businesses and the government. Buyers and sellers now have the liberty to do excise trade with full comfort and reliability.
iCustoms is helping businesses streamline their customs declarations by providing multiple services in all customs areas inside and outside the European Union.
