AWRS20700 - The scheme: why is wholesaling defined in terms of controlled activity/ controlled liquor? - HMRC internal manual - GOV.UK
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AWRS is designed to capture those businesses selling, offering or exposing or arranging a sale of nominally “duty paid” alcohol to other businesses for onward sale. The sale can be of any
quantity, there is no minimum level. The definitions of controlled activity and controlled liquor were drafted in this way to:
Regulation 9 of the WCLR 2015 makes it clear that a sale is to be treated as a sale of controlled liquor where the sale is made whilst the alcohol is still in duty suspension but the
recipient of the goods takes delivery after the duty point. This was included in the secondary legislation to make sure there is no scope for manipulation of the time of sale to make it
appear to be a sale in duty suspension. There may also be legitimate sales where the time of contract precedes the time of delivery of the goods but the goods are sold on a duty paid basis.
For example, where an owner of wine is storing products in an excise warehouse and arranges for the duty-paid delivery to a customer to occur after the time of sale, the sale should be
treated the same way as if it had occurred at the excise duty-point and the wine owner would be required to be approved.
There are specific rules regarding sales in duty suspension which are covered In Excise Notice 197: receipt into and removal from an excise warehouse of excise goods.