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Authorised use is a Customs Special Procedure that allows traders established in the UK to pay a reduced or zero rate of customs duty for imported goods as long as they are used for a specific purpose and processed within a specified period.

Read check if you’re established in the UK for customs to find out what ‘established in the UK� means.

Authorised use is most commonly used for goods within the aircraft, ship-work, military, oil and gas industries and for various goods used in the food industry such as cheese, fish and prawns.

Eligible goods can be identified in Authorised use: Eligible goods and authorised uses.

Goods that are not eligible for authorised use cannot be imported under the procedure.

What a prescribed use is

Goods imported under authorised use must be used for a specific purpose. This is more commonly known as the prescribed use. The prescribed use will depend on the type of goods being imported under authorised use, for example fish may be imported for industrial manufacture of battered fish. The prescribed use can be identified in Authorised use: Eligible goods and authorised uses, under the specific commodity code.

What customs supervision is

Customs supervision refers to the general measures taken by HMRC to ensure compliance with the customs legislation. Where appropriate, other relevant provisions may be applied. For example, HMRC may examine records, view goods being processed and check goods held in storage to verify compliance with the authorised use conditions. 

In the case of parts destined for authorised use in the repair or maintenance of aircraft or sea vessels, HMRC may examine engineers� and mechanics� reports of work done as well as inspecting the aircraft or vessel in which the goods are used.

What the supervising office is

The supervising customs office is the office that is responsible for monitoring compliance with the conditions and requirements of authorised use after the authorisation has been issued. The contact details of the supervising office can be found in the authorisation notification.

Supervising office responsibilities include:

• monitoring activity against the requirements of the authorised use procedure 
• retaining records relating to an authorisation 
• considering and approving amendments to authorisations 
• cancelling an authorisation where applicable and assurance that all goods held under the special procedure are properly disposed of and the relevant duties and taxes are paid 
• dealing with any enquiries related to the authorisation from colleagues or trade 
• considering applications to invalidate and/or replace import customs declarations made in error forwarding the substitute entry to the National Clearance Hub for Customs Input Entry where this facility still exists 
• checking post clearance C285 amendments and, if acceptable, forwarding them to the National Duty Repayment Centre (NDRC)ÌýÌý
• considering requests to extend the period of discharge 
• forwarding Bills of Discharge to the relevant office for checking and assurance 
• verifying rates of yield for processing operations 
• verifying claims for equivalence where approved and scrutinising results of sampling

How long customs supervision is

Once goods are declared for an authorised use procedure, the goods remain subject to customs supervision until the procedure is discharged. 

Goods considered capable of repeated use may remain under an extended period of customs supervision for up to two years after being first assigned to the prescribed use. After the extended period has expired the goods are considered to be discharged and no longer subject to customs supervision.  

The period of customs supervision will be stated in the authorisation notification.

Who can apply for authorised use

To apply for authorised use, a trader must be established in the UK and have a Great Britain (GB) Economic Operators Registration and Identification (EORI) number and be financially solvent. HMRC will assess their customs competence and ability to keep appropriate records, and for established traders, their past customs compliance. 

The authorisation holder does not need to be the owner of the goods. However, they are responsible for the duty and associated charges which may become due on goods imported under the authorisation. If goods are sold by the authorisation holder to a non-authorised trader, or otherwise diverted from their prescribed authorised use, the original authorisation holder retains liability for any debts incurred on the goods.

Types of authorisation

There are 4 types of authorisation you can get for authorised use:

• full authorisation
• by declaration
• authorisation covering Northern Ireland and EU
• retrospective

This guidance provides specific details on how to apply for authorised use. Read Authorisations Customs Technical Handbook for more technical guidance and detailed information on how to apply and manage existing authorisations.

Full authorisation

To apply for a full authorisation the trader needs to be established in the UK and complete an application form.

They will need:

• their GB EORI number
• an authorisation number or customs office reference if they have held an authorisation for identical goods in the last 3 years
• details of the goods being imported, including commodity codes, description, quantity and value
• details of third parties involved in the use of the goods and their addresses
• if applicable, the type of relief or suspension they will be seeking (if applicable), for example ship-work
• details of what they plan to do with the goods
• if  applicable, details of the guarantee they hold (if applicable), for example a customs comprehensive guarantee

A full authorisation can be granted up to a maximum period of 5 years.

What an Authorisation notification for full authorisation is

If an application is accepted, the applicant will receive a notification that will set out the conditions of their authorisation, for example:

• what information to include on an import customs declaration
• what records to keep and for how long
• the type of goods they are authorised to import
• the time period in which they need to discharge the goods

If a trader does not agree with the conditions in their notification, they must contact HMRC immediately explaining the reasons why.

Authorisation by declaration

This type of authorisation is intended for traders who have an occasional need to use a Special Procedure. When a trader declares the goods into authorised use this is considered an application for an authorisation. A trader can use this type of authorisation up to 3 times in a rolling year for goods with a total value of up to £500,000 for each import consignment. 

The trader must be the person who puts the goods to the prescribed use. They cannot sub-contract to someone to do it on their behalf.

A trader cannot use authorisation by declaration if:

• they’re using simplified customs declarations
• it is for a retrospective or backdated authorisation
• the goods are subject to anti-dumping duty
• they’re using equivalence - when free circulation goods are used in special customs procedures - read Using similar goods to replace customs special procedure goods for more information.

Retrospective authorisation

A trader can apply for authorisation after they have imported the goods, even if they have already put them to the eligible prescribed use or exported them. This is called a retrospective authorisation. To apply, a trader needs to complete an application form.

An authorisation can be backdated no longer than one year before the date on which the application was accepted by HMRC. Requests for retrospective authorisations are considered on a case-by-case basis. The trader must state why they require this type of authorisation and be able to provide sufficient evidence if requested by HMRC. If an authorisation holder forgot to renew their authorisation, they will need to contact their supervising office to explain why they were unable to renew their authorisation earlier.

To be granted a retrospective authorisation all of these conditions must be met:

• there is a strong, proven economic need
• the application is not related to attempted deception
• the trader can prove on the basis of accounts or records that:
  • all of the requirements of the procedure are met
  • where appropriate, the goods can be identified for the period involved
  • accounts and records are adequate to control the procedure
• the trader has not had a retrospective authorisation for a special procedure within 3 years of the date on which the application was accepted

If a retrospective authorisation is approved, the trader is required to ensure that records and other documentation reflect any grant of retrospective authorisation. This could include amending or cancelling previous import customs declarations.

Read Amend or cancel a Customs Declaration Service import declaration for more information on how to amend or cancel an import customs declaration.

Authorisation covering Northern Ireland and EU

In Northern Ireland, authorised use is referred to as end-use. If the trader is established in Northern Ireland and their end-use activities involve premises in Northern Ireland and EU, they can apply for a single authorisation covering multiple EU states. To apply, the trader needs to request access to the application system (EU Customs Trader Portal) by emailing [email protected] and provide the:

• name
• contact email address
• address of the Northern Ireland operation
• EORI number starting XI

If an authorisation is required that covers both Northern Ireland and Great Britain, the trader will need to fill in a separate form for each.

Read for more information on the EU Customs Trader Portal.

When a customs guarantee is needed

A guarantee is the financial cover for customs duties and other charges that are temporarily suspended. There are 2 types of customs guarantees:

• customs comprehensive guarantee
• individual guarantee

A comprehensive guarantee covers the customs debt and other charges of multiple operations and can be used in a longer time period. Full authorisation holders will not need a customs comprehensive guarantee (CCG) unless HMRC tell them one is required when they apply.  

If importing under authorisation by declaration, an individual guarantee is required. An individual guarantee is a guarantee that covers a single operation.

To apply for a CCG or an individual guarantee, go to apply for a customs comprehensive guarantee to cover customs debts.

Read the Guarantees and guarantee waivers handbook and the Customs Authorisations handbook for more information on customs guarantees.

The period of discharge is a time period given to an authorisation holder within which they must put their goods to the prescribed use. This is often referred to as the throughput period. Full authorisation holders can find details of the throughput period in their authorisation notifications. It will vary depending on the type of goods and processes involved. The period of discharge does not normally exceed one year, from the date of import customs declaration to free circulation. However, in certain industries longer periods may be required, for example, for aircraft and ship-work goods. 

The period of discharge for goods imported under authorisation by declaration is 6 months. If a longer period is required, an application for an extension must be made to HMRC. 

When goods have been put to their prescribed use or destroyed, the authorisation holder must tell HMRC by completing a Bill of Discharge (BoD) form. This releases the suspended duty liability.

Read (bullet point one of drafting notes) for more information.

An authorisation holder must keep and preserve records in respect of the goods placed under their authorisation. The records must be kept for a minimum of 3 years after disposal of all goods held under the authorisation. Any records must be made available to the supervising office when requested.

The records must contain these details, where appropriate:

• the reference to the authorisation necessary for placing the goods under a Special Procedure
• the Movement Reference Number (MRN) or where it does not exist, any other number or code identifying the particulars of the customs declarations by means of which the goods are placed under the Special Procedure and where the procedure has been discharged in accordance with The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 Part 5 Regulation 43, information about the manner in which the procedure was discharged
• specific data that identify customs documents other than customs declarations, or any other documents relevant to the placing of goods under a Special Procedure and any other documents relevant to the corresponding discharge of the procedure
• special markings, identifying numbers, number and kind of packages, the quantity and usual commercial or technical description of the goods and, where relevant, the identification marks of the container necessary to identify the goods
• location of goods and information about any movement of that
• customs status of goods
• particulars of usual forms of handling and, where applicable, the new tariff classification resulting from those usual forms of handling
• particulars of authorised use processing including information about the nature of the processing
• where Chapter 1, Regulation 18 of The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 applies, the costs for storage or usual forms of handling
• the rate of yield or its method of calculation where appropriate
• particulars enabling customs supervision and controls of the use of equivalent goods in accordance with The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018, Part 5, Regulationâ€�46
• where accounting segregation is carried out, information about type of goods, customs status and where appropriate, origin of the goods
• particulars of any transfer of rights and obligations in accordance with The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018, Part 5, Regulationâ€�42
• where the records are not part of the main accounts for customs purposes a reference to those main accounts for customs purposes
• information to identify any lost or damaged goods
• additional information for special cases, at the request of the customs authorities for justified reasons
• any additional information as specified in any authorisation or approval notifications

Authorisation holders must maintain and make available; on premises for inspection, when required:

• all stock controls
• financial and commercial records relating to goods for the procedure or goods held on the premises

Where records are maintained by a third party, any inconsistences or disputes over the accuracies of the records will be a commercial dispute. The authorisation holder should be aware that any inconsistencies in records that give rise to a customs debt will be their responsibility.

Normally, goods imported under authorised use should be stored separately from non-authorised use goods. However, where there is a proven commercial need, authorisation holders may apply to their supervising office for authority to store authorised use goods together with non-authorised use goods of the same kind. This may be approved only if the goods are of the same commercial quality, the same technical characteristics and fall within the same tariff code, that is, the same first 8 digits of the commodity code. 

The request may be approved if HMRC are satisfied that there is a need for such an arrangement and no control difficulties are likely to arise.

The rate of yield will be calculated based on the quantity of goods contained in the main prescribed products as indicated on the application form.  

This term is used to express the quantity of processed product obtained from a unit quantity of imported goods. The rate of yield should be specified on the application and verified by post authorisation checking of the processing records. It is important that the rate of yield is accurate. 

Where more than one product is obtained from the approved processing operations, a rate of yield for each distinguishable and marketable product must be established. Where goods are used up during processing, for example, by loss through evaporation, desiccation, venting as gas or leeching, these production losses should be subtracted from the quantity of import goods prior to establishing the rate of yield.

Transfer of rights and obligations (TORO) is an approval granted by HMRC for the holder of a special procedure authorisation to transfer some or all of the rights and obligations for goods declared to that procedure to another person/company, referred to as the transferee. HMRC will only approve TORO provided the transferee fulfils the criteria and conditions for the authorisation. This is in accordance with Part 5 (42) of The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018. �

An authorised use authorisation holder who is looking to transfer some of all of their rights and obligations is referred to as the transferor. A transferor must always be authorised for TORO. A transferee can also apply be TORO authorised, but this is not mandatory. Depending on whether the transferee is TORO authorised or not, this will impact the discharge of the special procedures.     

Two different procedures can be used for TORO depending on whether the transferee is, or is not TORO authorised.

Transfer of rights and obligations from the holder of an authorised use authorisation to a transferee who does not have any authorisation

The transferee does not have any authorisation relating to TORO. In this case the holder of the authorised use authorisation needs to provide information about the discharge of the procedure in the bill of discharge. The transferee does not have an obligation to provide information about the discharge of the procedure to customs. This type of TORO can be used both for partial and full TORO.

Transfer of rights and obligations from the holder of an authorised use authorisation to a transferee who has a transfer of rights and obligations authorisation

The transferee needs to be granted a TORO authorisation before any transfer of rights and obligations can take place. In this case the holder of an authorised use authorisation needs to provide information on the TORO in the bill of discharge, if it is required, or in the records. They do not have to provide information on the actual discharge to customs. The transferee should provide a bill of discharge.

Read Transfer the rights and obligations of a customs special procedure to someone else for more information on TORO.

A customs declaration is a document that lists and gives details of goods that are being imported or exported. Customs declarations must be submitted on the Customs Declaration Service (CDS). To gain access, an authorisation holder must subscribe their Government Gateway user ID to the CDS, this will allow them to:

• submit import and export declarations using software
• get a postponed import VAT statement or get an import VAT certificate so a VAT Return can be completed
• pay Customs Duty and import VAT

Read Customs Declaration Service for more information on CDS and how to submit a customs declaration.

Who can submit import customs declarations for authorised use

When the authorisation holder completes any import customs declaration, they are making a legal declaration that the information they have provided is accurate and correct. For authorised use, the declarant is the authorisation holder who will be held solely responsible for any mistakes made or customs debt owed. An authorisation holder may appoint a third-party representative to act on their behalf when submitting import customs declarations.

Who third-party representatives are

An authorisation holder may appoint a third-party representative to act on their behalf when submitting import customs declarations. When the third parties, such as fast parcel operators (FPOs) or freight agents, declare goods, they act as the representative of the authorisation holder. It is the responsibility of the representative to ensure that they have clear instructions from the authorisation holder.  

If representatives make import customs declarations to enter goods to authorised use without the authority of the person in whose name the goods are entered, they are regarded as acting in their own name and on their own behalf and will be liable for any customs debt incurred.

What direct representation is

Direct representation is when a third party submits an import customs declaration in an authorisation holders name and on their behalf. The authorisation holder is solely responsible for any customs debt that may arise. However, if clear instructions were given by the authorisation holder and a serious error was still made by the third-party representative, they may share liability for any debt that arises.

What indirect representation is

Indirect representation is when a third party submits an import customs declaration in their own name but on behalf of the authorisation holder. They are jointly and severally liable with the authorisation holder for any customs debt that may arise. Indirect representation is not allowed when importing goods under authorised use.

Responsibilities of third-party representatives

Third-party representatives should only declare goods to authorised use where they have been given clear instructions from an authorisation holder.  

An authorisation holder should make sure that their third-party representative provides them with copies of CDS (or their CDS reference numbers) and customs clearance reports for their records. They should also check that the correct CDS Procedure Codes have been used on import and re-export and that duty calculations are correct.

Read Customs debt liability for more information on direct and indirect representation.

Incurrence of customs debt at import customs declaration for free circulation

If goods imported under authorised use do not meet the conditions of the authorisation at the time they are declared for free circulation, the authorisation holder will owe the full amount of customs duty, unless the goods are exported or destroyed. This could happen if:

• the goods deteriorate before they are declared - for example, if fish are imported under authorised use as food, but the fish deteriorates before it is put to its prescribed use
• the goods are not the correct commodity code - for example, if an authorisation holder wants to import tuna under authorised use, but the goods that are delivered are another fish type that is not eligible for authorised use

The amount of customs duty that is owed will be based on the non-authorised use tariff code for the goods. Anti-dumping duty (ADD) may also be due. If applicable, an authorisation holder may be able to claim a tariff quota, suspension, or an alternative authorised use rate.

Incurrence of a customs debt after goods have been placed under customs supervision

If the goods placed under customs supervision are diverted from authorised use, duty is owed. The debt will be incurred at the moment when the goods are removed from customs supervision, or at the moment when an obligation or condition under the authorised use rules is not met. An example of diversion is if an authorisation holder imports goods under authorised use, but they then sell the goods instead of using them for the intended purpose. They will then owe customs duty.

Calculation of customs debt

The amount of duty to be paid is calculated in accordance with . It is based on the value of the goods when they were imported. Any other goods or values that have been added to the goods since they were imported will not be taken into consideration.

Example 1

If an authorisation holder imports brake linings and then mounts them onto drive axles, the debt will only be calculated based on the value of the brake linings. The value of the drive axles will not be taken into consideration.

Example 2

An authorisation holder imports petroleum oil for a specific process. Before undergoing that process, it is purified for easier handling. The purification increases the value of the oil by 10%. Before the purified oil is processed, a customs debt is incurred. The value added to the oil by the purification process is not taken into consideration when calculating the debt.