How duty is charged on goods exported for process
Information on how duty is charged on goods exported for process.
If the process is anything other than repair by any person free of charge the re-imported goods are to be regarded as chargeable goods. The value of the goods for duty is to be reduced to take account of so much of the value as can be attributed to the goods as they stood before being exported.
To apply this method, exporters must:
- calculate the customs value of the imported products using one of the valuation methods.
- deduct from this the value of the exported goods used in the manufacture of the processed products, applying the agreed rate of yield as appropriate
- account for duty on the difference between the 2 values, at the rate which applies to the imported processed products
Under Union Customs Code (in Northern Ireland), for a processed product duty is calculated on the added value. Duty is charged on the costs of processing the exported goods and transporting the processed products back to the UK. The duty rate applicable is the rate which applies to the processed products. Import VAT is due on the price charged for the process plus freight to and from the processor’s premises plus duty, providing ownership of the goods was not transferred to any other person during the time the goods were outside the UK.