_____________________________________________

 

 

MEMORANDUM OF UNDERSTANDING BETWEEN THE COMMISSIONERS OF HM REVENUE & CUSTOMS AND BONDED WAREHOUSEKEEPERS ASSOCIATION

 

_______________________________________________

 

 MEMORANDUM OF UNDERSTANDING MADE THIS 02 DAY OF JULY 2007

 

WHEREAS:

 

1.      Objective

 

1.1 The purpose of this Memorandum of Understanding (“MoU”) is to set out a framework for co-operation between HM Revenue & Customs (“the Commissioners”) and the Bonded Warehousekeepers Association henceforth known as “BWA” and its members as set out at Annex 1 hereof on the date of signing hereof, and members from time to time to contribute towards the prevention and disruption of smuggling or diversion of alcoholic beverages onto the UK market without the payment of excise duty at the earliest opportunity.

 

1.2 It is recognised that where members are signatories to other similar anti-fraud MoUs then the MoU most appropriate to their business will take precedence.

 

2.      Background

 

Alcohol smuggling and fraud cost HM Treasury significant lost revenue annually.  The supply of illicit (duty-evaded) alcohol also damages the interests of law-abiding warehouse keepers and consequently the BWA and its individual members wish to further co-operate with the Commissioners to reduce the opportunities for alcohol fraud in the UK market.  The BWA recognises that fraud takes place when goods are moving under duty suspension and that this can be achieved on movements out of the UK (Outward Diversion), on goods entering the UK (Inward Diversion) and when goods move between approved warehouses within the UK (Intra UK diversion). The BWA also recognizes the opportunities for fraud as a result of the REDS system and the Occasional Importers scheme.  Accordingly:

 

2.1    Both the BWA and the Commissioners will work together to further promote good practice and mutual assistance including the formation of a Joint Warehouse Fraud Task Force (“JWFTF”): the terms of reference for which are set out at Annex 2 hereto;