Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

ATA/CPD Carnets Manual

From
HM Revenue & Customs
Updated
, see all updates

National Carnet Unit (NCU): destruction under customs supervision

In certain circumstances, the third country carnet holder may wish to destroy their goods rather than re-export them from the EU.

The carnet holder must apply to the National Carnet Unit (NCU) before the goods are destroyed stating:

  • the reasons for destruction
  • where and when the destruction is intended to take place
  • whether or not there will be any residue resulting from destruction.

This request should be made at least five working days before the planned destruction. Unless the NCU has any suspicion as to the reasons for destruction, the application should always be allowed. However, before informing the carnet holder, the NCU should liaise with local staff to establish, on a risk basis, whether or not a customs presence is required.

The NCU must then write to the carnet holder, informing them that destruction may take place and that a customs presence will or will not be required. The letter will also explain how to account for any dutiable residue resulting from destruction.

Following destruction, the carnet holder must send the carnet to the NCU, together with any duty due on the residue. The NCU will complete and remove the white re-exportation voucher and suitably endorse the white re-exportation counterfoil. The carnet should then be returned to the carnet holder.

Calculating duty due after destruction

Following authorised destruction, the residue, or waste and scrap can be either re-exported or released to free circulation.

If the goods are released to free circulation and the waste and scrap has a commercial value, duty will be due on the value of the waste and scrap at either the rate of duty applicable to the goods at the time of importation or the ‘own rate’ applicable to the waste and scrap at the time of release to free circulation. The ‘own rate’ is the rate shown in the Tariff against the commodity code for the waste product.