Guidance

Declaring goods and paying tax when using a UK Freeport customs site

How to pay any customs duties on goods declared to the Freeports customs special procedure once removed from that customs site.

Where we refer to a ‘Freeport’ on this page, this also applies to ‘Green Freeports in Scotland’ unless otherwise stated.

Before you declare any goods

Before declaring any goods to the Freeport customs special procedure, you’ll need to be authorised. This is a single authorisation combined with easier declaration requirements.

You will need to check if you are moving controlled goods. These are any goods that:

Check when you are not permitted to use simplified customs declarations procedures

Businesses declaring goods (including controlled goods) to the Freeport customs special procedure can use simplified customs declaration procedures if authorised to do so. The following exceptions apply:

  • where a prior declaration to a customs special procedure has already been made in respect of the goods
  • where goods are controlled and have not previously been declared to another customs special procedure, the entry in declarant’s records form of simplified customs declaration procedures cannot be used

Declaring goods entering Great Britain to the Freeport customs special procedure

You can declare goods entering Great Britain (England, Scotland and Wales) either before they arrive in Great Britain, or when the goods have arrived.

Your goods will not be able to leave the control of the port until HMRC has confirmed that the goods can be released to the customs site.

Goods discharged from temporary storage will move directly to the Freeport customs site under the Freeport special procedure.

Non-controlled goods

To declare the goods, you’ll need to complete a Customs Clearance Request — form C21, using the Freeport procedure codes in the declaration completion requirements for Great Britain. You’ll also need to use the UK Trade Tariff, CDS Volume 3.

You will not have to submit a supplementary declaration.

You can also submit a full declaration using the Freeport procedure code in the declaration completion requirements for Great Britain.

You can also use simplified customs declaration procedures if authorised to do so.

Controlled goods

You must submit a standard declaration for controlled goods using the Customs declaration completion requirements for Great Britain. Simplified Customs Declaration Procedures may be used if you are authorised for, and the circumstances permit the use of, SCDP.

You should check when you are not permitted to use simplified customs declarations procedures.

Declaring goods moved from temporary storage next to a Freeport customs site

Goods can be moved from a port’s temporary storage facility to an external temporary storage facility next to a Freeport customs site. In order to be declared by conduct to the Freeport customs special procedure they must be discharged from temporary storage.

When goods move from a port’s temporary storage facility to an external temporary storage facility next to Freeport customs site — in order to be declared by conduct to the Freeport customs special procedure they must be discharged from temporary storage.

Non-controlled goods

If you are importing non-controlled goods, you can choose to discharge the goods from temporary storage using a Customs Clearance Request (form C21) using the Freeport procedure codes in the declaration completion requirements for Great Britain. You must then make a declaration by conduct to the Freeport customs special procedure.

To do this, you’ll need to:

  • have received the goods at your business premises in the Freeport customs site
  • tell your Freeport customs site operator that you have received the goods (an authorised customs operator is responsible for a Freeport customs site)
  • make an entry into your commercial records

Details you’ll need to enter in your own records may include:

  • the commodity code
  • the customs procedure code
  • your unique consignment reference, or appropriate commercial reference
  • purchase and, if available, the sales invoice numbers
  • the date and time of entry in records
  • any Freeport customs site, warehousing or temporary storage stock account references
  • the Freeport customs site or warehouse approval number
  • a written description of the goods — so they are easy to identify
  • customs value
  • quantity of goods — for example, number of packages and items, net mass
  • details of licensing requirements and licence numbers
  • details of any supporting documents, including the serial numbers, where appropriate, needed before the goods can be released
  • details of the person you’re representing if you are making a declaration on behalf of someone else

You will not have to submit a supplementary declaration.

You can apply for a temporary storage approval to get clearance of the goods to the Freeport customs special procedure yourself.

You can also use somebody else’s temporary storage facility at the Freeport customs site. You’ll need to check that:

  • they already have (or are planning to apply for) a temporary storage approval
  • you have agreement with the operator of the temporary storage facility to use it

There are other ways you can declare non-controlled goods and discharge them from Temporary Storage. You can submit a full declaration using the Freeport procedure code in the declaration completion requirements for Great Britain. You can also use simplified customs declaration procedures if authorised to do so. There are some circumstances where this is not permitted — you should check when you are not permitted to use simplified customs declarations procedures.

Controlled goods

If you are importing controlled goods, you can submit a full declaration using the Freeport procedure code in the declaration completion requirements for Great Britain. When the declaration is accepted by HMRC the goods will be discharged. Otherwise, you can use simplified customs declaration procedures if authorised to do so. There are some circumstances where this is not permitted — you should check when you are not permitted to use simplified customs declarations procedures.

Declaring goods moved under transit

You can use transit to bring goods into a Freeport customs site, if the authorised consignee’s authorisation includes the site as an approved location.

Your Freeport customs site operator will need evidence of the transit movement, such as the Transit Accompanying Document.

When the goods arrive, the authorised consignee will request permission to end the transit movement and unload the goods.

Non-controlled goods

To move non-controlled goods into the Freeport customs site and use the Freeport customs special procedure, you’ll need to make a declaration by conduct. To do this, you’ll need to:

  • have received the goods at your business premises in the Freeport customs site
  • tell your Freeport customs site operator that you have received the goods
  • make an entry into your commercial records

Details you’ll need to enter in your own records may include:

  • the commodity code
  • the customs procedure code
  • your unique consignment reference, or appropriate commercial reference
  • purchase and, if available, the sales invoice numbers
  • the date and time of entry in records
  • any Freeport customs site, warehousing or temporary storage stock account references
  • the Freeport customs site or warehouse approval number
  • a written description of the goods — so they are easy to identify
  • customs value
  • quantity of goods — for example, number of packages and items, net mass
  • details of licensing requirements and licence numbers
  • details of any supporting documents, including the serial numbers, where appropriate, needed before the goods can be released
  • details of the person you’re representing if you are making a declaration on behalf of someone else

You will not have to submit a supplementary declaration.

Controlled goods

To move controlled goods into the customs site you will need to submit a full declaration using the Freeport procedure code in the declaration completion requirements for Great Britain. You can also use simplified customs declaration procedures if authorised to do so. There are some circumstances where this is not permitted — you should check when you are not permitted to use simplified customs declarations procedures.

Discharging your goods from the Freeport customs special procedure

Goods exported

You’ll normally need to submit an exit summary declaration using the Freeport procedure code in the declaration completion requirements for Great Britain when goods are exported from the UK. When an exit summary declaration is not needed, you’ll need to give an onward export notification to HMRC.

Your Freeport customs site operator will need evidence that the goods are being moved to a place from where they will be exported.

Goods moved into free circulation

You can make a full declaration using the Freeport procedure code in the declaration completion requirements for Great Britain or use an entry in the declarant’s records (where existing simplified declaration procedure authorisations are held).

Paying duty when you release goods to free circulation

Before you release your goods to free circulation, you’ll need to account for import duties.

You’ll need to tell us if you wanted to calculate duty based on either:

  • the goods as they were at the time of the declaration to the Freeport customs special procedure
  • at the time of declaration to free circulation from the Freeport customs special procedure

You can change this method by contacting your supervising office and explaining the reasons. They will either allow or refuse your request and tell you if this impacts your authorisation.

Moving excise goods from the Freeport procedure into excise warehousing

You can choose to make a full declaration using the Freeport procedure code in the declaration completion requirements for Great Britain, or use an entry in the declarant’s records if authorised to use simplified customs declaration procedures

Your goods will not be allowed to leave the customs site until HMRC has confirmed that they can be released where a full declaration has been submitted. Your customs site operator will need evidence of either clearance of the full declaration, or your entry in records.

Once the declaration requirements have been met, you can move your excise goods into excise duty suspension (for example, an excise warehouse). The registered consignor will need to track the movement through the Excise Movement and Control System.

Retail sales of goods stored under the Freeport special procedure

You can only make retail sales of goods stored under the special procedures to:

  • individuals travelling outside the UK
  • members of international organisations
  • members of NATO forces
  • individuals covered by diplomatic and consular arrangements
  • remote and online customers, where goods are picked and dispatched to order

Freeport customs special procedure goods moved into other customs special procedures

You will need to keep the details of the goods that have been removed in your records.

Declaring goods moved between different Freeport customs sites

If you’re sending goods to an authorised business in a different Freeport customs site

You’ll need to:

  • keep the details of the goods that have been removed in your records
  • provide information about the movement to the Freeport customs site operator

If you’re moving goods authorised at another Freeport location

You’ll need to:

  • keep the details of the goods that have been removed in your records
  • provide information about the movement to both Freeport customs site operators

If you’re receiving goods from an authorised business in a different Freeport customs site

For controlled goods you will need to submit a full declaration using the Freeport procedure code in the declaration completion requirements for Great Britain.

For non-controlled goods, you will need to make a declaration by conduct. To do this, you’ll need to:

  • have received the goods at your business premises in the Freeport customs site
  • tell your Freeport customs site operator that you have received the goods
  • make an entry into your commercial records

Details you’ll need to enter in your own records may include:

  • the commodity code
  • the customs procedure code
  • your unique consignment reference, or appropriate commercial reference
  • purchase and, if available, the sales invoice numbers
  • the date and time of entry in records
  • any Freeport customs site, warehousing or temporary storage stock account references
  • the Freeport customs site or warehouse approval number
  • a written description of the goods — so they are easy to identify
  • customs value
  • quantity of goods — for example, number of packages and items, net mass
  • details of licensing requirements and licence numbers
  • details of any supporting documents, including the serial numbers, where appropriate, needed before the goods can be released
  • details of the person you’re representing if you are making a declaration on behalf of someone else

Declaring goods moved within the same Freeport customs site

If you’re receiving goods from another authorised business in the same Freeport customs site

For controlled goods you will need to submit a full declaration using the Freeport procedure code in the declaration completion requirements for Great Britain.

For non-controlled goods, you will need to make a declaration by conduct. To do this, you’ll need to:

  • have received the goods at your business premises in the Freeport customs site
  • tell your Freeport customs site operator that you have received the goods
  • make an entry into your commercial records

Details you’ll need to enter in your own records may include:

  • the commodity code
  • the customs procedure code
  • your unique consignment reference, or appropriate commercial reference
  • purchase and, if available, the sales invoice numbers
  • the date and time of entry in records
  • any Freeport customs site, warehousing or temporary storage stock account references
  • the Freeport customs site or warehouse approval number
  • a written description of the goods — so they are easy to identify
  • customs value
  • quantity of goods — for example, number of packages and items, net mass
  • details of licensing requirements and licence numbers
  • details of any supporting documents, including the serial numbers, where appropriate, needed before the goods can be released
  • details of the person you’re representing if you are making a declaration on behalf of someone else

You will not have to submit a supplementary declaration.

Receiving goods from another customs special procedure

For controlled goods you will need to submit a full declaration using the Freeport procedure code in the declaration completion requirements for Great Britain.

For non-controlled goods, you can choose to make a declaration by conduct. To do this, you’ll need to:

  • have received the goods at your business premises in the Freeport customs site
  • tell your Freeport customs site operator that you have received the goods
  • make an entry into your commercial records

Details you’ll need to enter in your own records may include:

  • the commodity code
  • the customs procedure code
  • your unique consignment reference, or appropriate commercial reference
  • purchase and, if available, the sales invoice numbers
  • the date and time of entry in records
  • any Freeport customs site, warehousing or temporary storage stock account references
  • the Freeport customs site or warehouse approval number
  • a written description of the goods — so they are easy to identify
  • customs value
  • quantity of goods — for example, number of packages and items, net mass
  • details of licensing requirements and licence numbers
  • details of any supporting documents, including the serial numbers, where appropriate, needed before the goods can be released
  • details of the person you’re representing if you are making a declaration on behalf of someone else

Another way that you can declare non-controlled goods is by submitting a full declaration.

Removing goods from the Freeport customs site temporarily

You can remove goods under the Freeport customs special procedure from the Freeport customs site on a temporary basis. This includes briefly removing single items for viewing or testing by prospective purchasers. If you do this:

  • removals for viewing or testing must be done near to the Freeport customs site
  • prospective purchasers must always be accompanied by freeport employees
  • you must keep records and obtain permission from HMRC before you remove the goods

The goods will remain under the Freeport customs special procedure arrangements while they are not in your storage area.

Your Freeport customs site operator will also need notification and evidence of permission to remove the goods temporarily.

Disposing of goods you’ve stored, repaired or processed

When you’ve finished storing or processing the goods, you must dispose of them by either:

  • re-exporting them outside the UK
  • declaring them to another customs procedure (including free circulation)
  • transferring them to another Freeport business authorisation holder
  • destroying them — usually only possible under customs supervision
  • using other simplified disposal methods

There are also special cases for certain goods which are classed as re-export. Your authorisation letter will tell you:

  • the period of time you have to discharge your goods — this will be based on the period you estimated on your application form
  • details of your supervising office if you need to extend the period

Information you’ll need if you dispose of your goods

If you’ve disposed of your goods, you’ll need the:

  • disposal reference number
  • date of disposal
  • free circulation declaration number
  • method of valuation
  • method of disposal
  • commodity code
  • description
  • quantity
  • rate of yield
  • amounts of customs charges that you’re claiming relief on

VAT on supplies in the Freeport customs site

You may be able to apply a zero-rate of VAT on supplies within the Freeport customs site of either:

  • goods declared to the Freeport customs special procedure
  • services carried out on goods declared to the Freeport customs special procedure

When you issue a VAT invoice for zero-rated goods or services, it must include the reference ‘free zone’.

You cannot zero-rate goods or services you sell to a business outside of a Freeport customs site.

If you are using an existing customs special procedure, the usual VAT rules for that procedure will apply.

When you can zero-rate supplies of goods

You can zero-rate supplies of goods if:

  • they are declared to the Freeport customs special procedure
  • they are sold from one authorised Freeport business to another in the Freeport customs site
  • both Freeport businesses are registered for VAT with HMRC (unless they are exempt from registering for VAT and HMRC has approved this exemption)

This includes goods declared to the Freeport customs special procedure that have been combined with goods purchased in the UK as part of an authorised activity in the Freeport customs site.

When you can zero-rate supplies of services

You can zero-rate supplies of services if the service:

  • is performed on or is in relation to goods declared to the Freeport customs special procedure
  • would be taxable, apart from under the free zone provisions
  • has been performed by an authorised person

The receiver of the service must tell the supplier in writing (for example, an email or letter) that the conditions for the zero-rate are met and zero-rate applies.

When the person receiving the goods may have to account for output tax

The receiver of zero-rated goods or services may need to account for output tax if you either:

  • do not make an onward supply of those goods within 3 months of declaring them to free circulation
  • breach the rules of the Freeport customs special procedure

The receiver will need to use the value of the goods or service to calculate how much output tax is due. They may also be able to claim back any input tax, in line with the usual VAT rules.

Published 20 September 2021
Last updated 1 October 2022 + show all updates
  1. Information about Customs Handling of Import and Export Freight (CHIEF) has been removed. You can no longer use CHIEF for import declarations unless you have permission from HMRC.

  2. Added translation

  3. We have updated the page to confirm the circumstances where you are not permitted to use simplified customs declarations procedures.

  4. Guidance has been updated to include what you must do to import controlled goods into a Freeport customs site.

  5. Guidance has been updated about declaring goods entering Great Britain to the Freeport customs special procedure, to explain which Freeport procedure codes you'll need to complete a Customs Clearance Request (form C21).

  6. Welsh translation has been added.

  7. Added information about paying duty when you release goods to free circulation and removing goods from the Freeport site temporarily.

  8. What you'll need to do to dispose of goods you’ve processed or repaired has been added.

  9. First published.