Discharge of inward processing and the methods of disposal

Information on the discharge of inward processing and the methods of disposal.

Period of Discharge

The Period for Discharge is the time required from declaring goods to inward processing to putting the goods to an eligible discharge. The importer should select a Period of Discharge which is based on the amount of time required to process the product. HMRC may ask to see production timelines as in most cases the Period of Discharge will be no more than 12 months. However, there can be exceptions, and the holder of the authorisation can request an extension for Supervising Customs Office to consider. If more storage time is required before or after processing, then Customs Warehousing may be required.

For example, an importer may need to store goods prior to being processed. A large supply of goods might have been purchased to be used throughout a whole year on a process which takes only one month. In this scenario most of the goods are stored for more than 5 months prior to processing. It would therefore be appropriate for the goods to be first declared to CW and then to IP once the goods are required for processing.

If an importer applies for IP and states their process is under Usual Forms of Handling (UFH), the maximum Period of Discharge for Usual Forms of Handling 聽is for 3 聽months. This is because the process is simple repackaging and sorting.

IP goods may undergo Usual Forms of Handling intended to preserve them, improve their appearance or marketable quality or prepare them for distribution or resale.

In general, the criteria to be applied are that an operation is allowable if it:

  • does not change the nature of the goods
  • does not improve the performance of the original goods
  • is not for the sole purpose of increasing the value of the goods
  • is a relatively limited operation, for example, the original import goods have been manufactured with the provision for the addition of components, that is fittings/connections/electrics already in place or pre-cut/pre-marked apertures

11(b)

Another restriction on Period of Discharge is prior export equivalence where the time to import equivalent goods is 6 months.