Special procedure: inward processing

Using goods at a more advanced stage of processing than the imported goods

Information on using goods at a more advanced stage of processing than the imported goods.

This may be allowed provided the importer carry out the essential part of the processing on the equivalent goods or it is carried out on their behalf by a processor named in their authorisation.

If the equivalent goods to be used are at a further stage of manufacture than the goods to be entered to inward processing, the comparison for equivalence purposes applies between goods that are used to produce those identified in SP3[SM1] and the goods to be entered to IP.

Supervising Customs Offices need to be satisfied that

• the free circulation goods stated in the SP3[SM1] are processed from goods that are equivalent to the non-UK goods stated in the SP3 form
• the processing operation carried out to produce the goods stated in part of, or the same as, the processing operation identified and is carried out by the person indicated in the SP3 or on their behalf by a person named
• the processed free circulation goods stated are the same as those indicated in the SP3

The amount of equivalent goods contained in the processed product equivalent to goods identified in SP3, will be determined by the rate of yield agreed.