HM Customs and Excise 15
                                                  17 March 1998
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BEER DRAWBACK - LAW SIMPLIFIED

The Chancellor announced today that the refund of excise on
duty paid beer for  export, known as drawback, is to be
simplified.


DETAILS

1.     The change will take effect on a date to be decided
when the proposed  amendment to The Excise Goods (Drawback)
Regulations 1995 comes into force.
  
2.   The measure will benefit both brewers and exporters of
beer and remove  unnecessary information requirements.  It
will not affect the ability of brewers or  exporters of beer
to claim drawback.


NOTES FOR EDITORS

1.     When United Kingdom excise duty has been paid on goods
which are  subsequently exported, removed to ship's stores or
destroyed, the duty may be  refunded, subject to certain
conditions being met.  This provision is known as  drawback. 

2.     Duplication of legislation has caused confusion in
cases of drawback fraud and  in the procedures for claiming
drawback of duty on the exportation of duty paid beer.   The
primary law in the Alcoholic Liquor Duties Act can now be
repealed, subject to a  further small amendment to the 1995
Regulations, for which we do not yet have a  completion date.
This will bring the procedures for claiming drawback of duty
on the  exportation of duty paid beer in line with those for
other goods.
 
3.   This measure will have no revenue effect, and no effect
on RPI.
 
4.   Details for traders are available in Budget Notice BN
79/98, which is available  from Customs and Excise Business
Advice Centres and from the Customs and  Excise Internet site.


Press enquiries only to HM Customs and Excise, Public
Relations Office, New  King's Beam House, 22 Upper Ground,
London, SE1 9PJ. 
Telephone:  0171 865 5468/5471

Others should contact their local Excise and Inland Customs
Business Advice  Centre, listed under Customs and Excise in
the telephone book. 
Customs and Excise Internet address: 
http://www.open.gov.uk/customs/c&ehome.htm

This news release can also be found at :
http://www.hm-treasury.gov.uk. Other Treasury material can
also be found at  this address.