188体育

Outward processing is often used for textiles which say, carry a 13% duty rate.

As an example, fabric, lining, buttons, zips, and interfacing are sent to a third country for manufacturing into suits.

The business has been granted an authorisation based on the descriptions and quantities of the goods exported, the descriptions and quantities of the processed goods imported, and the rate of yield.

The following example calculation demonstrates the duty saving:

9 metres fabric)

5 metres lining)

60 buttons)

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1 metre interfacing)

Total value goods exported = 拢130

The non-UK manufacturer鈥檚 invoice for processing costs of 拢500 covers labour and overhead costs but also additional materials used such as thread and waistband.

There is also 拢70 in freight and insurance charges.

The total added costs at re-import are 拢500 + 拢70 = 拢570.

Customs value of suits = 拢570 + 拢130 = 拢700

If duty were paid on full value, it would be 拢700 @ 13% = 拢84