Rate of yield and 'average' rate of yield
Information on the rate of yield and 'average' rate of yield.
If a person holds a UK authorisation and regularly carries out processing operations under outward processing, they can apply to their Customs Supervising Office to use an average rate of yield to calculate the duty due on their processed products.
The average rate is calculated as a percentage of the processing costs and will take account of the correct amounts of relief which they are able to claim.
Exporters should be authorised to use the agreed rate for a period of not more than 12 months at a time. As duty rates often change on 1 January, it is most convenient to use calendar years as the basis for periods of authorisation.
At the end of an authorised period, exporters must perform the correct duty calculations using the total quantities of goods exported and imported in the period. Any difference between the duties paid using the average rate and the correct amount due, should be paid, or reclaimed, at this time. If necessary, a new average rate should be calculated and agreed with HMRC for use over the next period.