SPE13025 - Inward Processing - conditions and requirements: Main Processed Products (MPPs)
Note: This manual is under review following Brexit and is likely to be withdrawn. If there is anything within this manual you use regularly, please email hmrcmanualsteam@hmrc.gov.uk to let us know. Please check the other guidance available on GOV.UK from HMRC.
If an authorisation is granted it is issued on the basis of specific goods being entered to IP for a specified processing operation. The goods produced as a result of that processing operation are ‘processed products’. Relief can only be claimed for those processed products that will be re-exported from the UK or put to a disposal that discharges IP. These should be identified as the main processed products (MPPs).
The trade and technical description of the MPP should always be in sufficient detail to clearly identify them.
Where different goods and different processes are involved, the application must show clearly which goods are to being used to produce which products and how the goods entered to IP are identified in each product.
Relief is only granted for the quantity of goods entered to IP that are in any MPPs re-exported or put to an eligible disposal, this will need to be identified when the rate of yield is set.
Authorisation checks
Applications which describe the goods to be entered in general terms such as ‘various’, must be returned to the applicant to provide clear and precise descriptions. Quantities and values must be provided if the economic code requires it or if the application includes use of equivalence (SP3).
(NI ONLY) Council Regulation (EU) 952/2013, Article 211; Commission Delegated Regulation (EU) 2015/2446, Annex A, Title I, Applications and decisions, Chapter 2, 5/7; Commission Implementing Regulation (EU) 2015/2447, Article 324
Note - Northern Ireland (NI) Customs Authorisations will continue to fall within the provisions of the Union Customs Code (UCC), as retained by the European Union (Withdrawal) Act 2018 and CEMA 1979