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HMRC internal manual

Customs Authorisation and Approval

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HM Revenue & Customs
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Overview of customs regimes and procedures requiring prior authorisation or approval: Specific Use

Economic operators may be authorised to import goods with total or partial relief from customs duties and other charges because of the specific use to which the goods will be put.  Under End Use goods may be imported into the Union at reduced rates providing the goods are put to the prescribed end use.

Specific use, as defined in article 210 of the Code, comprises temporary admissions (TA) and end-use. 

TA authorisations will be subject to a guarantee unless otherwise provided for in the legislation.

End use authorisations will require a guarantee, comprising of two parts:

·        A guarantee will be required to secure the payment of the actual debt (the end use rate applicable to the goods which is payable on their release).  If an immediate payment method is used (cash equivalent) then this element of the guarantee will not be required

·        A guarantee will be required to secure the potential debt which may be incurred following the goods release to end use.  This guarantee covers the potential difference in revenue between the full rate of duty and the end use rate of duty.  This amount will need to be secured by a guarantee until the Bill of Discharge for the end use procedure is submitted.

The following benefits are available to economic operators authorised for specific use procedures:

·        Commercial policy measures will not apply to goods under the temporary admissions procedures providing these do not prohibit the introduction or removal of the goods from the territory of the Union

·        Non-Union goods may be imported with total or partial relief from duty under TA

·        Goods may be moved between different locations or authorisations under the specific use arrangements, including movements to the office of exit

·        Equivalence may be authorised for specific use goods. Equivalent goods consist of Union goods which are used, stored or processed instead of the goods originally placed under a customs procedure.  The amount of equivalent goods used, processed or stored must not exceed the amount originally entered to the procedure. Equivalence cannot be authorised for goods subject to Anti-Dumping Duty.

The introduction of the Code has resulted in the following changes for specific use:

·        The requirement to submit a Bill of Discharge for end use goods

·        Prior authorisation for end use is dependent upon the provision of a guarantee

·        A maximum period of 10 years for imported goods to be held within the temporary admission procedure regardless of any movements of goods between authorisations

·        Military end use under Council Regulation 150/2003 may only be used by the Ministry of Defence, under their own authorisation.  Sub-contractors must use IP instead. 

            ·        Waste and scrap resulting from the destruction of end-use goods are deemed to be under the customs warehousing procedure.  A                                customs warehousing authorisation is not required.