Standard exchange system with prior importation
Information on Standard exchange system with prior importation.
Under Standard Exchange System with prior importation, replacements may be imported before the defective goods are exported. When this facility is used, the person must lodge security in full for the potential amount of customs duty and import VAT on the replacement goods.
The person must export the goods being replaced within two months of importing the replacement goods.
HMRC will discharge security upon payment of any import duties due, and/or on production of evidence that the goods being replaced have properly discharged from the procedure.
For goods replaced under warranty, the supplier may not require return of the defective goods. In such cases they may be placed under another customs procedure or, if destroyed, appropriate evidence of the destruction (certificate of destruction) may be accepted in lieu of actual attendance at the destruction.