Special procedure: inward processing

Prior Export Equivalence (PEE)

Information on Prior Export Equivalence.

Prior Export Equivalence (PEE) applies where free circulation goods equivalent to those identified in the SP3[SM1] are exported before non-UK goods are entered to inward processing. 

The quantity of authorised equivalent goods, contained within the exported product determines the authorisation holders ‘duty credit’.

The duty credit is offset when the same quantity of non-UK goods is subsequently entered to IP within the 6-month time limit.  

Goods exported under PEE prior export equivalence must be exported under customs control. This provides for HMRC to monitor exports using equivalence and the opportunity to examine or take samples to verify the equivalence criteria are met. 

The replacement non-UK goods will be imported from a third country. However, replacement goods can also be taken from customs warehousing, or another IP authorisation holder.