Notices Made Under the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018
This document provides the notices that, with effect from the 2 January 2019, are made under The Customs (Special Procedures) (EU Exit) Regulations 2018. These notices cover matters that are relevant to application and authorisation to use the Authorised Use, Inward Processing, Outward Processing and Temporary Admission procedures. They are listed in the numerical order of the regulations that provide the relevant notice making powers.
Establishment Rules
With regard to the establishment requirements for the Authorised Use and Inward Processing procedures:
The following text has force of law by virtue of Regulation 9(2)(c) of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018.
Authorisation to declare goods for an Inward Processing or an Authorised Use procedure can be granted to a person who is not established in the United Kingdom where the goods are
not part of a series of goods imported by the applicant and, in the opinion of an HMRC officer:
The goods are non-commercial goods or personal gifts, or the declaration of the goods for the procedure is incidental to any business carried on by the declarant; or,
The declaration of the goods for the procedure will have no economic effect in the United Kingdom.
Economic Conditions
With regard to the economic conditions for the Inward Processing procedure:
The following paragraphs have the force of law, by virtue of Regulations 20(1) and 20(2)(b) of The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018.
1. The cases of a description specified for the purposes of Regulation 20(1) of The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 are:
(a) Where the calculation of the amount of import duty is made in accordance with regulation 23 of the The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 and both of the conditions below apply:
HMRC is aware of evidence that the essential interests of producers of goods in the United Kingdom would be adversely affected by an authorisation to declare the goods for an inward processing procedure;
The operation to be carried out is not of a type at paragraph (2)(a) to (f) below.
(b) Where the calculation of the amount of import duty is not made in accordance with Regulation 23 of the The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 and both of the conditions below apply.
If the goods to be declared for an inward processing procedure were declared for the free-circulation procedure:
i. the goods would be subject to a non-tariff trade policy measure, an agricultural policy measure or an additional amount of import duty by virtue of section 13, 14 or 15 of the Taxation(Cross-border Trade) Act 2018; or
ii. the importer of the goods would be required to give a guarantee under paragraph 15(5) of Schedule 4 to that Act.
The operation to be carried out is not of a type at paragraph (2)(h), (i),(m),(p) or (s) below.
(c) Where the calculation of the amount of import duty is not made in accordance with regulation 23 of The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 and all of the conditions below apply:
If the goods to be declared for an inward processing procedure were declared for the free-circulation procedure:
i. the goods would not be subject to a non-tariff trade policy measure, an agricultural policy measure or an additional amount of import duty by virtue of section 13, 14 or 15 of the Taxation(Cross-border Trade) Act 2018; or
ii. the importer of the goods would not be required to give a guarantee under paragraph 15(5) of Schedule 4 to that Act.
HMRC is aware of evidence that the essential interests of producers of goods in the United Kingdom would be adversely affected by an authorisation to declare the goods for an inward processing procedure.
The operation to be carried out is not of a type at paragraph (2)(g) to (s) below.
2. The operations specified for the purposes of Regulation 20(2)(b) of the Customs (Special Procedures and Outward Processing)(EU Exit) Regulations 2018 are:
(a) The processing of goods that are not sensitive goods;
(b) Repair;
(c) The processing of goods directly or indirectly put at the disposal of the applicant to declare goods for an inward processing procedure, carried out according to specifications on behalf of a person established outside the United Kingdom, generally against payment of processing costs alone;
(d) The processing of durum wheat into pasta;
(e) The declaration of goods for an inward processing procedure within the limits of the quantity determined on the basis of a balance in accordance with Article 18 or Regulation (EU) 510/2015;
(f) The processing of sensitive goods in any of the following situations:
unavailability of goods produced in the United Kingdom sharing the same classification code, the same commercial quality and technical characteristics as the goods intended to be imported for the processing operations envisaged;
differences in price between goods produced in the United Kingdom and those intended to be imported, where comparable goods cannot be used because their price would not make the proposed commercial operation economically viable;
contractual obligations where comparable goods do not conform to the contractual requirements of the non-United Kingdom purchaser of the processed products, or where, in accordance with the contract, the processed products must be obtained from the goods intended to be declared for an inward processing procedure, in order to comply with provisions concerning the protection of industrial or commercial property rights;
the aggregate value of goods to be declared for an inward processing procedure, by the applicant for authorisation, in that calendar year, for each classification code, does not exceed £135,000.
(g) The processing of goods to ensure their compliance with technical requirements for their release for the free-circulation procedure;
(h) The processing of non-commercial goods or personal gifts;
(i) The processing of goods resulting from processing under a previous authorisation, the application for which was a case –
in relation to which an examination of the available evidence was required for the purposes of regulation 20(1)(a) of the Customs (Special Procedures and Outward Processing)(EU Exit) Regulations 2018; or
in relation to which an examination of the economic conditions was required for the purposes of Article 211(4) (b) of the UCC.
(j) The processing of solid and fluid fractions of palm oil, coconut oil, fluid fractions of coconut oil, palm kernel oil, fluid fractions of palm kernel oil, babassu oil or castor oil into products which are not destined for the food sector;
(k) The processing of goods into products to be incorporated in or used for civil aircraft for which an airworthiness certificate has been issued;
(l) The processing into products benefitting from relief provided under section 19 of the Taxation (Cross-border Trade) Act for weapons and military equipment;
(m) The processing of goods into samples;
(n) The processing of any electronic type of components, parts, assemblies or any other materials into information technology products;
(o) The processing of goods falling within classification codes 2707 or 2710 into products falling within classification codes 2707, 2710 or 2902;
(p) The reduction to waste and scrap, destruction, recovery of parts or components;
(q) Denaturing;
(r) An operation constituting usual forms of handling of goods as specified in a notice published by HMRC;
(s) The aggregate value of goods to be declared for an inward processing procedure, by the applicant for authorisation, in that calendar year, for each classification code, does not exceed -:
in the case of sensitive goods, £135,000;
in all other cases £270,000,
except where, if the goods to be declared for an inward processing procedure were declared for the free-circulation procedure:
i. the goods would not be subject to a non-tariff trade policy measure, an agricultural policy measure or an additional amount of import duty by virtue of section 13, 14 or 15 of the Taxation(Cross-border Trade) Act 2018: or
ii. the importer of the goods would not be required to give a guarantee under paragraph 15(5) of Schedule 4 to that Act.
Record Keeping
With regard to keeping records in relation to the operation of the Outward Processing procedure or
a Special Procedure:
This following paragraphs have the force of law, by virtue of Regulation 44(3) of The
Customs (Special Procedures and Outward Processing) (EU Exit) Regulation 2018.
1. The records to be kept and preserved are those which are appropriate to the
operation and discharge of the following procedures:
a storage procedure, under which goods can be kept in a premises approved by HMRC (customs warehouse);
an inward or outward processing procedure;
an authorised use procedure; or
a temporary admission procedure.
2. Records to be kept and preserved should contain information and particulars which will enable the control of the procedure by HMRC, including the identification of
goods, whether goods are domestic or chargeable and details of any movements of goods.
3. So far as appropriate to the relevant person, the records to be kept and preserved must include the following:
Details of any authorisation under which the goods have been declared for the relevant procedure;
A Master Reference Number (MRN) issued by HMRC or, where it does not exist, any other number or code identifying the Customs declaration of goods for the procedure;
Information about the manner in which the procedure was discharged;
Data that unequivocally allows the identification of documents, other than Customs declarations, which are relevant to the declaration of goods for the procedure;
Data that unequivocally allows the identification of documents relevant to the discharge of the procedure;
Particulars of marks, 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;
The location of goods and information about any movement thereof;
Whether the goods are domestic or chargeable;
Particulars of any usual forms of handling and, where applicable, the new classification code resulting from that operation;
Particulars of temporary admission or authorised use;
Particulars of inward processing or outward processing including information about the nature of the processing or the subjection of the goods to a supplementary form operation;
The costs for storage or any operations constituting usual forms of handling of goods;
Where appropriate, the rate of yield, approved quantity of goods resulting from processing and the approved methodology used;
Particulars enabling customs control of the use of equivalent goods;
Where accounting segregation is required, information about type of goods including domestic or chargeable status, whether they are equivalent goods and, where appropriate, the origin of the goods;
Where appropriate, particulars of any transfer of rights and obligations;
Where the records are not part of the main accounts for customs purposes, a reference to those main accounts;
Any additional information for special cases, as requested by HMRC for justified reasons.
4. A person subject to the requirements of these paragraphs shall update a record at the time when any information that is to be kept and preserved under these paragraphs is first known to them, or as soon as possible thereafter. However, where goods declared for a storage procedure are moved from a customs warehouse in order to be exported, records shall be updated to provide information about the export of the goods:
within 100 days of the goods being removed from the customs warehouse; or
within such longer period agreed with HMRC.
5. Records may be kept and preserved in any form sufficient to enable any HMRC officer to control the procedure and to enable the person subject to these requirements to demonstrate that the conditions and requirements of theprocedure have been satisfied.
6. Records must be kept and preserved for a minimum of three years unless elsewhere specified.
7. HMRC may waive any of the requirements set out above in particular cases.
8. In the case of temporary admission, records shall be kept only if a person is notified of this requirement by HMRC.
9. An authorised economic operator is deemed to comply with the requirements set out in these paragraphs insofar as their records in relation to the relevant procedure are, in the opinion of an HMRC officer, appropriate.
10.These paragraphs apply in addition to any requirements for the keeping and preservation of accounts and records by customs traders that are set out elsewhere.
Equivalent Goods
[Omitted]
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