Date: Wednesday, November 24, 2010

Re:	Informational Advisory on 2011 EMCS Regulations (Europe)

Informational Advisory: 2011 EMCS Regulations affecting European Suppliers

Excise Movement and Control Systems (EMCS)

On January 1^st 2011, the European Union (EU) will be introducing the Excise Movement and Control System (EMCS) This is a computerized system for monitoring movements of excisable goods such as wines, spirits and beer.This significant change will impact not only moves within the European Union, but also your imports from this area.

What does this mean for you, your supplier and JF Hillebrand?

EMCS will replace the paper version of the AdministrativeAccompanying Document (AAD) by an electronic Administrative Document (e-AD)

Each EU country has its own National Excise Application (in France, your instance, the online portal, GAMM@) Your suppliers will have to register with the NEA in their respective countries in order to be able to generate the e-AD for each shipment leaving their premises. When your supplier successfully generates an e-AD, the system will assign an Administrative Reference Code (ARC) to the movement

In order for JF Hillebrand to collect an order from your supplier, the supplier will have to generate an e-AD as above and give to the driver either a printed copy of the e-AD or or any other commercial document mentioning, in a clearly identifiable manner, the ARC number.

Otherwise, JF Hillebrand will be unable to collect the goods.

What can you do to prepare for the change?

We recommend that you check if your suppliers are prepared for the changes; here are some good questions to ask:

• Have they already set up their accounts with their National Excise Application (NEA)?
• Are they trained and ready to use this application?

All JF Hillebrand offices within the European Union are available to guide the export community during this transition, and please feel free to communicate this to your suppliers. In France, for instance, our Servicing International division provides training to French wines and spirits exporters on how to use EMCS via GAMM@. You can recommend these training sessions to your suppliers; please contact:

All JF Hillebrand offices within the European Union are available to guide the export community during this transition, and please feel free to communicate this to your suppliers. In France, for instance, our Servicing International division provides training to French wines and spirits exporters on how to use EMCS via GAMM@. You can recommend these training sessions to your suppliers; please contact:

Nordine Taha

Servicing International

Division Manager

formation.servicing.international@hillebrandgroup.com

Note: we would like to remind you for US imports, as per US TTB ruling, the AAD is no longer required for clearing of wines and spirits from the European Community although many brokers continue to request them. Certificates of origin are only required for certain specific products, such as Cognac, Armagnac, Champagne, Scotch Whisky, Irish Whiskey, Jerez, Port, etc.