Movements of goods from one EU country to another by small producer of alcoholic beverages – a certificate can provide excise-duty benefits

Alcoholic beverages moved from Finland to another EU country can have reduced excise duty rates, if the beverages are part of a small producer’s production.  The reduction from the usual level of excise duties is granted in the EU country that receives the delivery.

The company must self-declare a certificate of small production in order to fulfil the requirements of the reduction. Self-declaration means that the small producer logs in to the EMCS to complete the e-AD or e-SAD accompanying document – and answers the relevant questions.

All independent companies that produce alcoholic beverages in a small scale in Finland are able to self-declare the certificate.

What kind of companies are regarded as small producers of alcoholic beverages?

Companies are treated as being a small producer if:

• it is legally and financially independent of other producers in the same category of alcoholic beverages
• it does not produce beverages under licence
• its volume of beverages produced stays below the thresholds referred to in the Council Directive
  • for example, the company’s volume stays below 200,000 hectolitres of beer brewed
  • small producer status may also be accorded to a small distillery or to a small producer of cider or wine

For other producers than distilleries there also is a criterion the small producer must operate in a physically separate location from other producers of similar beverages.

How does the certificate work?

The common certification system for independent small producers can involve self-declaration by the producer, or issuance of certificates by the company that sends the beverages from Finland to another EU country. The common certification system aims for making it easier for other countries in the EU to grant the independent small producer status to companies. As a result, small companies can receive a reduced rate of excise duties in the countries where such rates are applicable.

When business enterprises bring alcoholic beverages to Finland from other EU countries, beer is the only alcoholic beverage that qualifies for the reduced rate offered to small producers. In order for the foreign small producer to get the reduction for its beer in Finland, the required documentation must be made out, consisting of accompanying administrative documents and entries added to them.

Cider is not among the alcoholic beverages that qualify for the Finnish reduced rate. However, a Finnish small producer can carry out intra-Community supply of cider to another EU country where the local reduced rates of excise duties apply on cider.

There are differences between the tax rules in force among the EU countries. The differences concern product categories that may qualify, maximum production volumes per year, and the size of the reduction. 

Which organisation is the issuer of the certificate?

It is sufficient in Finland to enter the required markings onto the accompanying documentation. It is normal to enter the markings already today when beer, produced by small breweries, is the product being moved. The organisation that enters the markings is the party that carries out the intra-Community movement of the small producer’s beverages to another EU country.

Organisations that bring beverages to Finland must be aware that some countries have established a system involving certification by a public authority. Some variation among the countries also exist in the way the markings look like, as public authorities may enter the markings in some countries and self-certification is applicable in other countries. For example, reference numbers are only included in the certificates issued by public authorities. The sender must in this case quote the reference number on the e-AD or e-SAD documentation.

How you can self-declare the certificate for small production

There are 2 options:

1. If you move goods under temporary duty suspension, use the electronic format, available in the  EMCS. The information necessary for the certificate must be entered on the e-AD accompanying document, separately for every transport of goods moved. Go to the EMCS.
2. If you deliver goods to another EU country and Finland has already imposed excise duties on the goods, use the electronic format, available in the  EMCS. The information necessary for the certificate must be entered on the e-SAD accompanying document, separately for every transport of goods moved. Go to the EMCS.

Further information:

Directive 92/83/EEC

Directive (EU) 2020/1151 on amending Council Directive 92/83/EEC on the structures of excise duty on alcohol and alcoholic beverages (regarding cider and other alcoholic beverages)