European Excise Management & Control System
Since the creation of the European Union Internal Market in 1993, the movements of excise goods among EU countries have been accompanied by a paper-based document, the Accompanying Administrative Document (ADD). The system was designed to ensure appropriate payment of taxes while respecting the principle of free trade among EU countries without requiring customs controls at the borders between Member States. But today, as many paper-based business processes are being automated and converted to electronic data exchange, government regulations are changing to keep pace with technology. As of April 1, 2010, companies which transport excisable goods under duty suspension are now required to migrate from traditional paper-based ADD systems to a computerized Excise Movement and Control System (EMCS) that uses electronic messages to monitor movements of excise goods. Migrations must be completed by the end of the year.
The new regulations will have the most profound effect on companies trading in alcohol, tobacco, and energy products, which have the most commonly applied excise duties. Under EMCS, a movement of excise goods between two traders is monitored through every stage of the shipment using an electronic Administrative Document (e-AD) issued by the consignor. The e-AD must be validated by the EMCS of the Member State where it is originated. The e-AD is then transmitted electronically to the EMCS of the destination Member State, and it is forwarded to the consignee. When the goods are received, the consignee submits a report to all involved Member States and the consignor, acknowledging receipt and noting any anomalies in the shipment.
Invoiceware International Advantage
“Utilizing an OnDemand Compliance Network allows our internal staff to focus on strategic business activities rather than constantly researching and implementing continual changes in each country.”
Randy Isdahl, Director SAP Process Architecture, Brown Forman Corporation