How to Import Alcohol into the UK

Whether you're a brewery, distillery or winery looking to break into the UK market, this comprehensive guide provides a detailed overview of everything you need to know to import alcoholic beverages into the UK successfully.

The UK drinks market is one of the most exciting and dynamic in the world. Combined revenues for alcoholic drinks at home (supermarkets and convenience stores) and out-of-home (restaurants, bars and pubs) generated a whopping $65.3 billion in 2023 and is projected to reach over $70 billion by 2029.

In short, importing alcohol into the UK can be an exciting and lucrative venture, but the process is laden with regulatory hurdles and logistical complexities.

If it’s a market that interests you, we’re diving deep into the alcohol import process, discussing the various taxes and duties and offering a step-by-step guide for how to import alcohol into the UK.

Please note: as a third-party logistics provider, we’re not legal experts and recommend seeking legal advice before you attempt to import alcohol into the UK.

With that out of the way, let’s start with…

Who Can Import Alcohol into the UK?

At the highest level, both businesses and individuals can import alcohol into the UK as long as they follow specific guidelines.

Businesses: Companies can import alcohol into the UK for commercial purposes, provided they comply with all legal and regulatory requirements.
Individuals: Individuals can also import alcohol for personal use, but different rules and limits apply compared to commercial imports.

For this article, we’re assuming that you’re a business that would like to import significant quantities of alcoholic beverages into the UK market.

Please note that there are special circumstances for importing alcohol into Northern Ireland from EU countries. We recommend referring to UK government resources to understand the opportunities here, as it can be simpler and less costly to make the most of a ‘registered consignee’ (NOT ‘registered consignor’).

Alcohol Sales Requirements

Licensing requirements will vary based on your end customers. Depending on your route to market, you may need one or both of the following:

Alcohol Wholesaler Registration Scheme (AWRS): Businesses intending to sell alcohol to other businesses – wholesalers, retailers, bars, restaurants, etc. – must register with HMRC under the AWRS.
Premises Licence: A Premises Licence allows you to sell alcohol directly to consumers from a specific location, such as a shop, bar, or restaurant.
1. Designated Premises Supervisor (DPS): A personal licence holder responsible for the sale of alcohol at the premises.

Customs Registration

To import any goods at all into the UK, you’re also likely to need an Economic Operators Registration and Identification number (EORI number). This is effectively the code that will enable you to make customs declarations, which will be required on landing goods in the UK.

You need an EORI number that starts with GB to import goods into England, Wales or Scotland. You'll need a new one if you have an EORI that doesn’t start with GB.

Duty Suspension

As alcohol is an excise good, it’s also very likely that you’ll want to hold and move your alcoholic goods in ‘duty suspension’ (AKA ‘under bond’) within the UK.

This means that excise duty (Alcohol Duty in this case) and VAT is only payable when the goods in an excise warehouse (often called a ‘bonded warehouse’) are ‘released for consumption’ – effectively, sold and distributed to their final destination.

There are strict regulations surrounding bonded warehouses of all types, requiring approvals from authorities in the UK. In brief summary, if you intend to set up a bonded warehouse of your own, you would need to apply to become an authorised excise warehousekeeper. You may also need to be approved as a ‘registered consignor’. You can find full details in this guide.

In truth, unless you are a major producer or importer, it is unlikely to be cost effective to set up your own excise warehouse. Which brings us on to…

Why Do It Yourself?

In most cases, we would recommend using other specialised businesses and/or agents to import alcohol into the UK on your behalf.

In this case, you will not need to fulfil the requirements above yourself; depending on your route to market, you simply need to ensure that your chosen agents are:

Properly licensed and registered:
- Ensure that the agents have the necessary AWRS registration if they will be selling alcohol to other businesses.
- Verify that they hold a valid Premises Licence if they are selling directly to consumers.
Compliant with duty suspension regulations:
- Confirm that the agents operate excise warehouses approved for holding and moving alcoholic goods under duty suspension.
- Ensure that they are authorised excise warehousekeepers and, if necessary, registered consignors (if not also a ‘customs warehouse’).
Efficient in customs declarations:
- Verify that the agents can use an EORI number starting with GB for making customs declarations.
- Check that they are proficient in using the Customs Declaration Service (CDS) - previously the Customs Handling of Import and Export Freight (CHIEF) system.
Experienced in alcohol imports:
- It’s always a good idea to select agents who have a proven track record and expertise in handling alcohol imports, including knowledge of customs procedures, duty calculations and full compliance with UK regulations.
Cost-effective, reliable and communicative:
- Evaluate the cost-effectiveness of using the agents’ services compared to setting up your own bonded warehouse.
- Look for agents with reliable logistics networks and good reputations for timely and secure delivery of goods.
- Choose agents who provide clear and transparent pricing structures.
- Ensure they offer good communication and customer service, keeping you informed about the status of your imports and any relevant regulatory changes.

It’s likely that you’ll want some combination of:

Freight Forwarders
1. Specialise in transporting goods and handling import/export logistics.
2. Can manage customs clearance and duty payments on your behalf.
Customs Brokers
1. Experts in customs regulations and procedures.
2. Can assist with all necessary documentation and compliance.
Bonded Warehouse Operators
1. Provide storage solutions with duty suspension benefits.
2. Ensure secure and compliant handling of alcoholic goods.
Logistics Companies
1. Offer end-to-end supply chain solutions, including transportation, warehousing, and distribution.
2. Often have the necessary licences and registrations to handle alcohol imports.

By choosing the right third party, you can simplify the process of importing alcohol into the UK, ensuring compliance with all legal and regulatory requirements while saving time and resources.

In short, you can focus on your core business activities while relying on experienced professionals to manage the complexities of alcohol importation.

Types of Alcohol You Can Import to the UK

There are few restrictions on the types of alcohol that can be imported into the UK. A couple of restrictions worth noting are:

Homemade or unlicenced distilled spirits: While it is legal to make alcohol at home for personal use, importing and selling it commercially is illegal due to health and safety concerns.
Counterfeit alcohol: Alcohol that is counterfeit or does not meet UK safety standards is prohibited. This includes products that do not conform to proper labelling, ingredient and production standards.

Otherwise, there is a diverse drinking market within the UK, with beer, wine, spirits and cider all being popular choices.

UK Customs Alcohol Allowance and Limits

If you’re bringing alcohol into the UK for personal use, you can bring in a limited amount without paying tax or duty depending on the type of alcohol:

Beer: 42 litres
Wine (still): 18 litres
Spirits and liquors over 22% ABV: 4 litres

You can also bring in 9 litres of other alcoholic drinks up to 22% ABV, but this allowance is split with the allowance for spirits and liquors above. For example, you could bring 2 litres of spirits and 4.5 litres of fortified wine (both half of your allowance).

There are no allowances for commercial imports. As long as all regulatory requirements are met, with taxes and duties paid, there are also no import limits for businesses.

Tax and Duties on Imported Alcohol into the UK

There are a number of taxes and duties that must be paid when importing alcohol into the UK. It can be difficult to understand the full range of relevant taxes, so here are the basic categories to help clear this up:

Alcohol Duty (AKA Excise Duty)

Alcohol Duty, a specific form of excise duty (a tax on goods the government would like to discourage), is a duty payable on most alcoholic products both domestically and on imports.

Alcohol Duty is payable on any product with an ABV of 1.3% or more, including the usual suspects:

Beer
Cider
Spirits
Wine
Other fermented products

The Alcohol Duty rates for each form can be found here.

Alcohol Duty is calculated based on the type of alcoholic product and the percentage of pure alcohol in your product, otherwise known as Alcohol by Volume (ABV).

To work out the amount of Alcohol Duty due on your product, you multiply the number of litres of pure alcohol that your product contains by the appropriate duty rate.

For example, let’s say that you were importing 720 litres of beer at 9.2% ABV. You would:

First work out how much beer you have in total: 720 litres.
Work out how many litres of pure alcohol is in your beer: 720 x 9.2% ABV = 66.24 litres.
Find the correct duty rate for your alcohol type and ABV: in this case, £28.50.
Work out the Alcohol Duty by multiplying litres of pure alcohol by the duty rate: 66.24 x £28.50 = £1,887.84.
Round down to the nearest penny if needed.

In recent years, the UK government has also introduced new forms of relief on Alcohol Duty aimed at supporting small producers and reducing the tax burden on draught alcoholic products:

Small Producer Relief
1. Purpose: To reform and extend the relief currently enjoyed by small breweries to all producers of alcoholic products under 8.5% ABV.
2. Eligibility: Available to small producers of beer, cider, wine, and other alcoholic beverages with an alcohol by volume (ABV) of less than 8.5%.
3. Benefit: Provides a reduced rate of duty for qualifying small producers, promoting growth and sustainability in the craft and small-scale production sectors.
Draught Relief
1. Purpose: To reduce the tax burden on draught alcoholic products sold in on-trade venues such as pubs.
2. Eligibility: Applicable to draught alcoholic products under 8.5% ABV that are packaged in containers of at least 20 litres.
3. Benefit: Offers a reduced rate of duty on eligible draught products, supporting pubs and other on-trade establishments by lowering their operating costs and encouraging the sale of draught beverages.

It’s definitely worth investigating these options if your imports meet the eligibility criteria.

UK Duty Stamps Scheme

Related to Alcohol Duty, the UK Duty Stamps Scheme (also known as ‘fiscal markings’) is a regulatory measure designed to ensure that Alcohol Duty is paid on certain alcoholic beverages and to combat fraud and illegal trade.

The scheme applies to spirits, wine or ‘made-wine’ with an alcohol by volume of 30% or more in bottles and other retail containers of 35cl or larger.

If your goods meet these requirements, you’ll need to register for the UK Duty Stamps Scheme and ensure that your products carry a duty stamp before they can be legally sold in the UK.

Customs Duty (AKA Import Duty)

Customs Duty is the tax paid on all goods imported into the UK, whether excise goods or not. However, unlike some other goods, you will pay Customs Duty on excise goods of any value - there are no minimum thresholds.

Customs Duty is based on the value and type of goods (its commodity code). The duty rate can also vary depending on the country of origin due to trade agreements.

It’s calculated as a percentage of the value of the imported goods, including shipping and insurance costs.

However, in most cases, you’re likely to find that the Customs Duty on alcoholic beverages from many origin countries is zero. The principal concerns for imports of alcohol are Alcohol Duty and VAT.

Value Added Tax (VAT)

VAT is a consumption tax levied on most goods and services sold in the UK and a major source of government revenue.

VAT is generally applied to alcoholic products sold in the country at the standard rate of 20%. Note that VAT is calculated as 20% of the total value of imported goods, including:

Incidental expenses: packaging, transport, insurance, etc.
Customs Duty or levy payable on importation into the UK.
Any Excise Duty (Alcohol Duty, in this case) or other charges payable on importation into the UK.

Import VAT, VAT registration and VAT accounting are complex topics beyond the scope of this article, but you can find out more directly from the UK government here.

How to Calculate Taxes and Duties

If you’re struggling to estimate the various taxes and duties, the simplest option is to use this complete step-by-step tool provided by the UK government. It will guide you through the entire process of importing into the UK.

If you’d just like to quickly find the correct commodity code and get a basic estimate of import costs, you can also use the Integrated Online Tariff tool here, though it’s more complex.

A Step-by-Step Guide to Importing Alcohol into the UK

Now we’ve reviewed some of the overarching principles of importing alcohol, let’s get into a step-by-step guide on how to import alcohol commercially into the UK.

Please note that this is a high-level guide - you will find that there are many smaller steps along the way. We have provided relevant resources wherever possible to help you through the minutiae.

1. Plan Your Market Entry

It should go without saying, but it makes sense to develop a marketing and sales strategy prior to importing any goods into the UK. You should first conduct market analysis and ensure that the UK is a viable market for your product.

In addition, you’ll want to establish a plan for your sales channels within the UK, whether through wholesalers, venues, retailers or directly to consumers.

Although all of this will doubtless evolve as you develop your in-market experience, the decisions you make here may impact your choice of import methodology, such as duty suspension options.

2. Get Your Business Ready to Import

If you won’t be using a third-party to support importation, like a freight forwarder, logistics provider or UK-registered wholesaler, it may be necessary to first ensure that your business is legally registered in the UK. Many licences and other schemes in the subsequent steps will require a UK-registered business.

Whether or not you become a UK-registered business, you must register for VAT with HMRC if you meet the conditions specified here. For most businesses it’s likely to be a requirement.

3. Obtain Necessary Licences and Registrations

Whether you’re importing with the help of a partner or not, you’ll need an Economic Operators Registration and Identification number (EORI number) to enable you to import into the UK.

Again, if you won’t be using an import partner, you may need one or both of the following:

AWRS Registration: If selling alcohol to other businesses, register under the Alcohol Wholesaler Registration Scheme (AWRS).
Premises Licence: Obtain a premises licence if selling alcohol directly to consumers in the UK.

If you’re using a partner in the UK, as covered in detail in the ‘Who Can Import Alcohol into the UK?’ section above, check that your partners have all required licences and registrations

4. Study and Prepare for Import Duties and Taxes

We’ve gone into detail on all duties and taxes in the previous section, but you should make sure that you fully understand at least:

Alcohol Duty
Customs Duty
VAT

You’ll also want to understand whether you’re eligible for any of the forms of relief discussed above.

Note that it’s possible to defer payments of Alcohol Duty, Custom Duty and import VAT using a duty deferment account, which lets the importer (or someone who represents them) make one payment a month through Direct Debit instead of paying for individual consignments.

5. Ensure Proper Packaging and Labelling

You will need to ensure that you comply with required packaging formats in the UK. You must also provide the correct information on your drinks packaging or risk a criminal offence.

Correct labelling can include many elements, such as:

Product name
Alcohol content (ABV)
Country of origin
Allergens and sensitisers
Net quantity

Make sure to review the latest guidance from official sources, like here for spirits labelling.

Remember when importing spirits, wine or other fermented products, you may also be required to affix a duty stamp or include one on the label.

6. Arrange for Transportation and Logistics

If you have the required authorisations and registration, you may handle logistics yourself; but, in most cases, it will be simpler to engage the services of a freight forwarding company, customs broker, logistics partner, bonded warehouse operator or any combination of these or other in-country agents.

You should also insure your shipments to cover potential losses during transit. Although, be aware that this cost will be included in the calculation of import duties and VAT.

7. Customs Declarations

Once your alcohol lands in the UK, you will need to pay the relevant import duties or make other arrangements to suspend duty payments.

Firstly, ensure that shipments are accompanied by all necessary documentation, such as:

Commercial invoices
Packing lists
Bills of lading
Certificate of origin
Customs clearance

Import licences may also be necessary depending on the type of alcohol. It’s essential to provide the correct paperwork at customs. Failure to supply the right paperwork will result in your goods being held at customs or seized by HMRC and even destroyed.

If you’re using an import partner such as a customs broker, they will resolve the customs declarations on your behalf, including submissions to the Customs Declaration Service (CDS). Otherwise, you will need to fulfil all requirements of customs clearance yourself.

8. Duty Suspension and Warehousing

As discussed in the previous sections, it’s very likely that you’ll want to import alcohol under duty suspension in order to defer Alcohol Duty and VAT payments until your goods are released for consumption in the UK.

It is simplest to use an approved excise warehouse operator (AKA ‘bonded warehouse’) to enable movement of excise goods, like alcohol, under duty suspension.

If using a bonded warehouse, make sure to select an approved operator and carefully arrange in partnership for the transport and storage of your alcohol at their destination. Note that only an authorised excise warehousekeeper or ‘registered consignor’ can transport goods from its arrival port to an excise warehouse - DO NOT attempt this yourself.

9. Distribute and Sell Your Products

Once safely and legally entered into the UK, you can begin to distribute and sell your products from the excise warehouse according to your marketing and sales plan.

Note that any suspended Alcohol Duty or VAT will need to be paid as your product is released for consumption. If available, your import partner or bonded warehouse can help to ensure that your goods are released in compliance. If you are managing this yourself, ensure that you fully understand all requirements around receiving, storing and moving excise goods.

10. Ongoing Compliance and Reporting

We recommend keeping detailed records of all imports, including as much information as possible, such as quantities, ABVs, values, and duty and VAT payments.

You or your import partners should regularly submit excise and VAT returns to HMRC. You should also stay informed about any regulatory changes that might affect your business, especially in the volatile regulatory environment following Brexit and the UK election in 2024.

One approach is to conduct periodic audits of your import operations to ensure ongoing compliance.

Common Mistakes when Importing Alcohol into the UK

Importing alcohol into the UK can be an extraordinarily rewarding enterprise, but it’s fraught with potential pitfalls that can easily cause delays, significant financial losses or legal issues if not properly managed.

Here are some of the most common pitfalls and how to avoid them:

Failure to Obtain Proper Licensing and Registration
1. Pitfall: Not securing the necessary licences and registrations can lead to severe penalties and prohibit your ability to import and sell alcohol.
2. Solution: Ensure you have all required licences, including AWRS registration if selling to other businesses, a premises licence for retail sales, and an EORI number for customs declarations.
Non-Compliance with Duty and Tax Regulations
1. Pitfall: Misunderstanding or neglecting duty and tax obligations can result in significant fines and back payments.
2. Solution: Accurately calculate Alcohol Duty, Customs Duty and VAT. Utilise bonded warehouses to defer duty payments and consult with tax experts if necessary.
Incorrect or Incomplete Documentation
1. Pitfall: Inaccurate or incomplete customs documentation can cause delays and additional costs. It may even result in your goods being seized and destroyed.
2. Solution: Ensure all import documents are correctly filled out, including commercial invoices, packing lists and bills of lading. Double-check for accuracy and completeness before submission.
Lack of Understanding of Import Regulations
1. Pitfall: Ignorance of the latest import regulations can lead to non-compliance and penalties. It’s especially tricky at this time as the UK adjusts to a post-Brexit environment.
2. Solution: Stay up to date with HMRC guidelines and import regulations. Regularly review government resources and consider joining industry associations for the latest updates.
Unreliable Import Partners
1. Pitfall: Working with unreliable or non-compliant import partners, such as customs brokers or logistics providers, can lead to quality issues, legal problems and financial losses.
2. Solution: Conduct thorough due diligence on all suppliers. Verify their compliance with UK regulations and check their reputation and reliability. Also, make sure that they are transparent and responsive.
Improper Use of Duty Stamps
1. Pitfall: Failing to comply with the UK Duty Stamps Scheme can result in product seizures and fines.
2. Solution: Ensure that all applicable alcoholic products carry the correct duty stamps. Register for the scheme if required and affix stamps properly before importation.
Underestimating Import Costs
1. Pitfall: Failing to account for all import-related costs can hurt your profitability.
2. Solution: Prepare a comprehensive budget that includes duties, taxes, transportation, insurance, warehousing and compliance costs. Use online tools and consult with customs brokers for accurate cost estimates.
Inefficient Logistics and Storage Managements
1. Pitfall: Poor logistics and storage management can lead to delays, increased costs and damaged goods.
2. Solution: Partner with reliable logistics companies and freight forwarders. Utilise bonded warehouses for efficient storage and duty suspension benefits. Ensure proper handling and storage practices for accurate, cost-effective distribution.
Inadequate Record-Keeping
1. Pitfall: Poor record-keeping can result in compliance issues and difficulties during HMRC audits.
2. Solution: Maintain meticulous records of all import transactions, including invoices, duty payments and any correspondence with HMRC. Ideally, use digital record-keeping systems to organise and store documentation securely.
Ignoring Market Dynamics and Consumer Preferences
1. Pitfall: Importing products that do not align with market demands can lead to unsold inventory and financial losses.
2. Solution: Conduct thorough market research to understand consumer preferences and market trends. Tailor your product selection to meet the demands of the UK market and adjust your strategy as needed. It’s why we recommend planning your market entry first!

Post-Brexit Changes

Since Brexit, several significant changes have impacted the importation of alcohol into the UK. Customs declarations are now mandatory for all alcohol imports from the EU, accompanied by the requirement for an Economic Operators Registration and Identification (EORI) number starting with GB. The UK Global Tariff applies to most imports, though many alcoholic products from various origins benefit from zero customs duties, provided proper documentation is completed.

Import VAT is now payable at the point of import for EU goods, but postponed VAT accounting allows deferral until the next VAT return. The UK also emphasises digital customs procedures and compliance with updated product standards and labelling requirements, which may increasingly diverge from EU regulations.

In 2023, the UK introduced a new alcohol duty system greatly simplifying the calculation process for duty rates linked to alcohol by volume (ABV). Some have called this the biggest reform of duty for nearly half a century.

At the same time, the Small Producer Relief scheme was expanded to include small producers of all alcoholic beverages under 8.5% ABV, offering reduced duty rates to support craft and independent producers. Additionally, Draught Relief was implemented, reducing the duty on draught alcoholic products under 8.5% ABV packaged in containers of at least 20 litres, benefiting pubs and on-trade venues.

Perhaps most difficult has been the effort to standardise regulatory requirements for trade between Northern Ireland, the rest of the UK, and the EU. With the Northern Ireland Protocol introduced, requirements for alcohol imports into Northern Ireland will remain different to the rest of the UK, so special care is required to ensure compliance.

All in all, it’s been an active few years in terms of regulatory changes, with many issues still to be fully resolved. More than ever, we recommend that importers stay informed to maintain compliance and ensure smooth operations for the long term.

Resources

As there are many details to resolve when importing alcohol, we’ve tried to share relevant resources throughout this article to help you on your way. However, here’s a quick summary of some core resources if you’re undertaking further research:

Tap’in to a New Market without the Headaches

As we’ve seen, importing alcohol into the UK can be a complex and daunting task, with plenty of hurdles to trip you up. From navigating customs regulations and securing the necessary licences to managing logistics and ensuring compliance with duty suspension rules, the process can quickly become overwhelming. But you don’t have to tackle it alone.

At Tap'in, we specialise in streamlining drinks logistics, helping drinks producers and importers like you to focus on what you do best: crafting exceptional beverages.

Here’s how we make your import journey seamless and hassle-free:

Expert guidance: With years of experience in the logistics industry, we provide the knowledge and support you need to navigate UK regulations effortlessly.
Comprehensive logistics services: From flexible bonded warehousing to last-mile delivery, we handle every aspect of the drinks logistics process. We can also work with your chosen customs agents to help streamline the customs declaration and import process.
Cost-Effective Solutions: By leveraging our established networks and resources, we help you save on costs associated with warehousing, transportation and compliance.

Focus on Your Craft, Leave the Logistics to Us

So don’t let the complexities of alcohol importation slow you down. Partner with Tap'in and experience a hassle-free logistics solution tailored to your needs. Contact us today and share your drinks with a whole new market. 🚀