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HMRC internal manual

Customs Authorisation and Approval

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HM Revenue & Customs
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Transition Arrangements: Transition arrangements for Processing

Current IP(D) authorisation holders who wish to import goods to IP on or after 1 May 2016 will require a new, Code IP authorisation.

Authorisations for:

·        Inward Processing (Suspension) and

·        Outward Processing

that were granted under the Community Customs Code (Reg. No. 2913/92) may continue to be used to enter goods to the special procedure until the date of expiry or 30 April 2019 whichever is earliest.

Economic operators must have their new authorisation for these types of procedure in place by 1 May 2019 in order to retain the special procedure.

Economic operators will be required to reapply for these types of authorisations.

 

Entry of goods to a special procedure on or after 1 May 2016:

No imports may be made to Inward Processing (IP) Drawback (D) on or after 1 May 2016.

No imports may be made to Processing under Customs Control (PCC) customs procedure codes (CPCs) on or after 1 May 2016. 

PCC authorisations may be used, to import goods to IP during the transition period until the date of the PCC authorisations expiry or 30 April 2019, whichever is earliest. 

PCC authorisation holders will be issued with an IP authorisation number which must be used after 1 May 2016 for any new importations.  The customs debt rules in article 85 of the Code must be used for the new importations (valuation of the processed goods).

 

Discharge of a special procedure on or after 1 May 2016:

Current IP (D) authorisations will have a period of six months from the end of the throughput period to reclaim duties paid on import to IP (D). All claims must be made no later than 31 December 2018. 

Goods entered to the following special procedures on or before 30 April 2016 but discharged on or after 1 May 2016 must be discharged under the UCC rules:

·        Inward processing suspension (article 86(3) Code- valuation at the time of entry to the procedure) and

·        Processing under Customs Control (article 85 Code, valuation of the processed goods).

Goods entered to the following special procedures on or before 30 April 2016 but discharged on or after 1 May 2016 must be discharged under the Community Customs Code (Reg No. 2913/92) rules:

Goods entered to the following special procedures on or before 30 April 2016 but discharged on or after 1 May 2016 must be discharged under the Community Customs Code (Reg No. 2913/92) rules:

·        Inward processing drawback and

·        Outward processing.

 

The following table details the specific types of operations which may be operated under a Community Customs Code (Reg. No. 2913/92) authorisation and those which may only be performed if a new Code authorisation is held. 

Only processes, premises or operations which are authorised on 1 May 2016 will be allowed to continue under the Community Customs Code (Reg. No. 2913/92).  Any new operations, premises or processes to be added will require full re-authorisation under the Code.

 

Type of Operation/ Benefits available after 1 May 2016 Available with a 2913/92 authorisation (CCC) Only applies to a 952/13 authorisation (UCC)
Requirement to re-export IP goods Y N
Economic tests for processing are reduced post UCC Y Y
Simplified movement of goods N Y
Provision of a guarantee Optional YMandatory except for:

OP where no SES or prior import takes place and

IP with prior export equivalence (PEE)        
  Non-Union goods may be used in processing operations within the Union without incurring customs duties (or other charges) Y Y  
  Commercial policy measures will not apply to goods under the processing procedures providing these do not relate to P&Rs Y Y  
  Customs duties (and other charges) may be applied to the processed product following its declaration to a free circulation procedure Y Y  
  Goods may be moved between different locations under the processing arrangements, including movements to the office of exit Y Y  
  Equivalence may be authorised for processed goods. Y Y  
  Equivalence with Usual Forms of Handling (UFH) Y N  
  Union goods may be temporarily exported to undergo processing operations. The processed products may be released to free circulation with total or  partial relief from import duty Y Y  
Equivalence is not allowed for goods subject to Anti-Dumping Duty (ADD) N N  
       

There are no high level criteria additions for Processing.