In April 2006, in a significant move to combat alcohol fraud, the WSTA signed a Memorandum of Understanding with HM Revenue & Customs (HMRC). The agreement provides a framework for co-operation in tackling spirit alcohol fraud and smuggling into and out of the UK and set a formal basis of co-operation which will restrict the opportunities for fraudsters to hide illicit duty suspended movements within legitimate imports.
Key points of the MoU are:
Both HMRC and WSTA members are equally committed to stamp out spirits fraud;
WSTA members will maintain adequate records to allow fast track enquiries from HMRC;
WSTA members will make every effort to ensure that accurate manifest information is given to the carrier. This will facilitate inspection by HMRC at ports of entry;
To facilitate anti-fraud activity (including fast tracking), WSTA members are invited to submit a list of imported brands to HMRC;
WSTA members are encouraged to consider appointing a responsible person (and deputy) to facilitate implementation of the MoU, i.e. rapid liaison with HMRC in the event of a suspected fraud.
In August 2007, at a meeting of the Joint Spirit Fraud Task Force (JSFTF), HMRC confirmed to the WSTA that the scope of the JSFTF would be expanded to include other beverage alcohol sectors such as wine and beer: this would provide an appropriate forum for intelligence on fraud to be submitted, and for feed back in the form of a newsletter (or something similar) to be given to the beverage alcohol sector - not just spirits -on progress achieved in prosecuting criminals, downward trends in fraud etc.
Also confirmed was that HMRC would continue to work with the trade and others on issues related to counterfeit products.
HMRC was careful to emphasise that it was unlikely to release detailed information on cases already under investigation, and it was acknowledged that the gathering of data on fraud levels is not an exact science.For further information, contact John Corbet-Milward at the WSTA (
or 020 7089 3879)
