Reporting the transport of untaxed tobacco products

If you want to transport untaxed tobacco products, you need a permit and must register for the computerised Excise Movement and Control System (EMCS).

If you transport tobacco products without them already being subject to tobacco duty, this is referred to as "transportation under suspension of duty". The tax is suspended as long as the tobacco products are on their way to their final destination, where it may then be levied. Alternatively, the tobacco products can be used tax-free after transportation under certain conditions or placed in a tax warehouse under duty suspension.
Transportation under duty suspension is generally possible in the following cases:

• You are authorized to transport tobacco products within the German tax territory. Transportation is possible
  • to another tax warehouse. A tax warehouse is a location approved by the main customs office where tobacco products may be manufactured, processed, treated, stored, received or dispatched under tax suspension.
  • to businesses that are allowed to use the tobacco products tax-free.
  • to so-called beneficiaries, for example foreign armies, diplomatic missions and consular representations.
  • tobacco products imported into the German tax territory from a country outside the European Union (third country or third territory) and transported on to a tax warehouse, users or so-called beneficiaries.
• You are authorized to transport tobacco products within the European Union. This includes transportation from, to or via other European member states.
• You are entitled to transport tobacco products to a location outside the European Union, i.e. to a third country or third territory.

If you wish to transport tobacco products under duty suspension, you must notify the customs authorities for excise duty monitoring. The various transport steps are recorded in a database, the computerized Excise Movement and Control System (EMCS). If irregularities occur during transportation, the tax suspension ends and the tobacco products must be taxed.
A simplified procedure applies if you only transport goods to users' businesses in the German tax territory.
With the appropriate authorization from the main customs office, you can transport tobacco products as a tax warehouse holder or registered consignor without using the electronic EMCS procedure in a simplified procedure under duty suspension.

• As a rule, you do not have to submit any documents.
• In the case of deliveries to so-called beneficiaries, for example foreign armies, diplomatic missions and consular posts, a copy of the exemption certificate (issued by the beneficiary) must also be submitted.

Forms: yes
Online procedure: yes
Written form required: yes
Personal appearance required: no

If you are obliged to do so, you must notify the transport electronically in advance via the EMCS application.

• Appeal
• In the event of an irregularity during transport under suspension of excise duty, tobacco tax arises and you will receive a tax assessment notice. Detailed information on how to lodge an appeal in this case can be found in your tax assessment notice.
• Action before the tax court

As a rule, you must submit the notification of transportation electronically. You can use the customs administration's online procedure for this purpose:

• Call up the Customs Administration's "Internet EMCS application" ("IEA") and follow the instructions for declaration.
• Click on the "Create new process" button on the start page of the application. Add the "e-VD" form (electronic administrative document) to the process.
• Complete the "Draft e-VD" form and save it. If necessary, follow the instructions for missing information or subforms.
• Select the "Sign" option to send the declaration to your main customs office.
• The EMCS application automatically checks your declaration.
• If the verification of your declaration was successful, you will receive a message in the Internet EMCS application with a summary of the data you have submitted. If not, you will receive an error message.
• You will also receive a reference number for the EMCS process (Administrative Reference Code, ARC) and a PDF document with a list of the process data. The printed PDF document or a commercial document showing the reference number is used to accompany your goods.
• If the recipient has confirmed receipt of the goods in the EMCS after their arrival, you will receive the "notification of receipt" message, possibly together with further information, for example in the event of a complaint.
• If you do not send the goods, but receive them, you must create such a notification of receipt as the recipient. To do this, use the "Declaration of receipt" form in the Internet EMCS application.

Alternatively, you can use certain customs-certified software to declare transportation under suspension of duty.
In some cases, there are exceptions to the obligation to declare transportation electronically. In this case, you must submit the declaration in writing:

• Find out about the so-called default procedure (paper procedure) on the customs administration website.
• Follow the customs administration's instructions on the respective procedure, the requirements and the necessary forms.

The main customs office in whose district you operate your business or, if you do not operate a business, in whose district you are resident, is responsible. If your company is operated from a location outside Germany or if you do not have a place of residence in Germany, the main customs office in whose district you first appear for tax purposes is responsible.

• in the case of dispatch: submission of the notification of transport at the earliest 7 days before the start of transport, in any case before the start of transport
• in the case of receipt: submission of the report of receipt without delay, at the latest 5 working days after arrival of the goods

The processing of the technical registration for the "Internet EMCS application" (communication master data) usually takes 2 to 4 weeks.

There are no costs for the receipt of the notification of carriage.
If tax matters appear to be at risk, you may have to provide security for the transport to the main customs office. For transport to or via other Member States, a security must always be provided and must be valid in all Member States.