EMCS is a computerized system for monitoring movements of excise goods under suspension of excise duty within the EU, i.e. for which no excise duties have yet been paid. As of 1 April 2010, it will replace the paper document that currently must accompany such movements (the Administrative Accompanying Document or AAD) with electronic messages from the consignor to the consignee via Member State administrations.

EMCS: When and how?

• 1 April 2010: EMCS becomes operational (see press release IP/10/401 );
• 1 January 2011: EMCS becomes MANDATORY for relevant movements of excise goods;

EMCS will mean

• Simplification of procedures; Paperless administration;
• Secure movement of goods (Traders' data will be checked before the goods are dispatched);
• Quicker release of the guarantee for traders (Evidence that the goods arrived at their destination will come faster in a safer way); and effective monitoring with real time information and checks during movements.  This amounts to a major development for those who trade in alcohol and alcoholic beverages, tobacco or energy products

Crossgate’s turnkey e-AD service is fully integrated with SAP and offers real-time integration with EMCS systems throughout Europe.  Messages are transmitted directly out of SAP across Crossgate’s Business-Ready Network to the required government regulatory agencies.  A customized EMCS transaction monitor enables viewing and management of both inbound and outbound events, along with mapping and communication of each message type between the Member State’s EMCS and the company’s SAP environment.  Outbound message requests are tracked and highlighted  to indicate different processing states as the request is processed and responded to.  Inbound messages are parsed and stored so they can be easily integrated into SAP.  The Crossgate solution also includes provisions for managing messages associated with process variations such as cancellations, redirections, reminders, imports, and exports.

1. The consignor submits the e-AD 2. The Member State of dispatch validates the e-AD and sends it back to the consignor (including the AAD Registration Code – ARC) 3. The consignor dispatches the excise goods 4. The Member State of dispatch transmits the e-AD to the Member State of destination 5. The Member States of destination forwards the e-AD to the consignee

6. The excise goods arrive at destination 7. The consignee submits a report of receipt 8. The Member Stat of destination validates the report of receipt and sends it back to the consignee 9. The Member State of destination transmits the report of receipt to the Member State of dispatch 10. The Member State of dispatch forwards the report of receipt to the consignor.

The new regulations will have the most profound effect on companies trading in alcohol, tobacco, and energy products, which have the most commonly applied excise duties.  Under EMCS, a movement of excise goods between two traders is monitored through every stage of the shipment using an electronic Administrative Document (e-AD) issued by the consignor. The e-AD must be validated by the EMCS of the Member State where it is originated.  The e-AD is then transmitted electronically to the EMCS of the destination Member State, and it is forwarded to the consignee.  When the goods are received, the consignee submits a report to all involved Member States and the consignor, acknowledging receipt and noting any anomalies in the shipment.