Graham: Can you provide an overview of what your business does?
Michael: For the last 26 years we have been providing bonded warehousing services to the United Kingdom drinks trade. From 1 October 2026 vapes will be subject to Excise duty. The business is currently seeking approval from HM Revenue & Customs to amend its approval to include this commodity.
Graham: When did you first become engaged with the BWA and what were the key reasons for joining the association?
Michael: EHD London has been a member of the BWA for many years and benefits from the Association’s updates and insights.
Graham: What are currently the biggest challenges that the industry is facing?
Michael: Regarding the drinks industry, we have seen a shift in the drinking culture, lifestyle changes and economy pressures.
Graham: What innovations can you see coming to the industry in the future?
Michael: As opposed to an innovation, EHD London views the changes to vape legislation as an opportunity. The company is working hard now to prepare itself for the forthcoming changes. This includes the adoption of robust Track and Trace systems, a necessary future requirement.
Graham: What should businesses storing vape products be aware of as the new Vaping Products Duty and associated regulations are introduced, and how might the new requirements change the way vape products are stored and managed?
Michael: Warehousekeepers will need to amend their approval with HMRC to be able to handle this product. Furthermore, as of 1 April 2027, there will be strict Track & Trace requirements for vapes which will increase administration.
Graham: Why will effective Track and Trace systems become increasingly important for businesses handling vape products?
Michael: The new tax on vapes will be significant, HMRC will require warehouses, authorised for storage, to be able to provide a clear audit trail of goods entering and leaving their facilities. With regards to the way they are stored and managed, vapes come in various components, liquids and batteries. The latter are deemed more volatile, which is why EHD London will consign this product to their specialist site, a series of former munition bunkers. Insurance companies have already voiced their concerns regarding co-storage.
Graham: What steps can businesses take now to prepare for the changes and avoid disruption when the new requirements come into effect, and what should a company look for when choosing a storage or warehousing provider?
Michael: Businesses should be applying to HMRC for authorisation to store vapes ahead of the 1 October 2026, when the new tax rate becomes applicable. They will also need to establish if their current systems will support the product and finally, if they plan to work with vapes after 1 April 2027, have initiated a Track & Trace system. Those companies trading in vapes should seek recognised warehouses with robust WM systems and experience in complying with HMRC regulations.
Graham: What are your priorities over the next 12 months?
Michael: To ensure our readiness for future vape business and the continued support of our existing customers in their day-to-day activities.
For further details, go to: ehdlondon.com
