How to operate inward processing with other special procedures

Information on how to operate inward processing with other special procedures.

Inward processing 听补苍诲 Authorised Use Moving Authorised Use (AU) goods to IP聽is not permitted as AU goods are in free circulation. However, AU goods can be used in the manufacture or repair of goods held under IP provided the nature of the process/repair constitutes an eligible disposal for AU. For example, fitment of an aircraft part. In such cases use of AU聽goods is allowed as they are equivalent to free circulation goods being used for the same purpose.

There are two ways of Declaring goods from inward processing to Authorised Use

  1. releasing IP goods to Free Circulation (FC) at the Authorised Use 聽rate of duty by the inward processing importer. For example This might be used if some of the goods are not being exported and the importer wishes to release them to FC at the most advantageous rate

  2. declaring IP聽goods that did not qualify for AU聽when first imported to IP, but where the processed product could be put to an AU by an authorised third party.聽It is not the original IP聽importer who is satisfying the use, but a third party that holds an AU authorisation

More information on End-Use/Authorised Use procedures can be found Apply to pay less duty on goods you import for specific uses - 188体育

Inward processing and outward processing

If goods are already in IP, they can be temporarily exported under outward processing, then re-imported under IP, and in this situation any duty due on the process or repair is added to the amount suspended under IP. The time the goods spend outside the UK counts towards the total time they can stay in the procedure known as period of discharge time.聽 A full IP听补苍诲 OP authorisation is required.

Processing inward processing goods in a Customs Warehouse

If IP authorisation holder wish to process IP goods in a CW, the IP聽application must specify the warehouse where the processing will be carried out and quote the CW authorisation number for the premises.

IP goods may be stored for a short period of time in a CW聽either pre or post processing. Where storage may predominate over process period, CW must be used rather than IP. All applications are considered based on the entirety of the economic operations. IP is a processing regime and should not be used for storage. Once processing is finalised the IP聽goods should be re-exported or discharged to another eligible method of disposal as soon as possible.

If the importer needs to store goods before and/or after processing, they should use the CW arrangements. If there is likely to be a long delay between the processing of the goods being completed and their re-export, the processed products should be declared to CW where the goods can await re-export from the UK or disposal by other eligible method.

A reasonable period of storage will be permitted in the IP聽authorisation if it can be demonstrated that this is part of the process, but any period of storage granted cannot be longer than the time taken to process the goods. More information on Customs Warehousing procedures can be found at Apply to operate a customs warehouse - 188体育