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HMRC internal manual

Customs Special Procedures Manual

Authorisation by declaration: conditions for IP with an authorisation by declaration

All traders using Inward Processing must obtain an authorisation from Customs. For traders using IP with an authorisation by declaration, the authorisation is granted when the customs import declaration (using the correct IP Customs Procedure Code (CPC)) is accepted by Customs.

The main conditions of using IP with an authorisation by declaration are as follows:

  • trader must be established in the EU
  • the goods must be entered correctly to IP using the import declaration process (Customs declaration (C88 SAD) to CHIEF) quoting the correct authorisation by declaration Customs Procedure Code (CPC), Economic Code, Commodity Codes, goods description and other codes on all Customs declarations relating to the goods
  • goods must be processed within the period for discharge allowed (for most goods this is within six months but for Usual Forms of Handling (UFH) this is three months)
  • traders using IP with an authorisation by declaration will receive a ‘Reminder’ letter when the period for discharge ends (legal deadline for submission is 30 days before the BoD is due)
  • traders must maintain meticulous records to ensure the requirements of the procedure can be verified if Customs undertake assurance or audit checks. The records should allow a full audit trail, tracking the goods from import through processing to re-export/disposal. Customs officers must be allowed access to records and/or goods at any reasonable time as IP goods remain under Customs Supervision at all times
  • Bills of Discharge (Form BoD3) should be submitted as soon as possible after the goods have been disposed of or, at the very latest, within thirty days of the end of the allocated period for discharge. The BoD should to be received by the Customs Supervising Office (NIRU) before the set deadline expires.

The movement of goods under IP with an authorisation by declaration to another Member State’s Office of Exit must be done under cover of the re-export declaration, with the goods showing the status of T1 (third country goods), see Commission Implementing Regulation (EU) 2015/2447, Article 267 (1).