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HMRC internal manual

Customs Special Procedures Manual

Discharge of IP - methods of disposal: Channel Islands and other special territories

The movement of IP goods to the Channel Islands and other special territories of the EU listed in Volume 1 Part 2 of the Tariff does not, in itself, discharge customs duty liability as it does not constitute an export from the customs territory of the EU. All the Special Territories are in the ‘Customs’ territory of the EU (but may be outside the ‘fiscal territory’ see below). Therefore you cannot ‘export’ goods to the Channel Islands but the export procedure (currently NES) can be used if the movement to the Channel Islands or other Special Territory of the EU is part of an indirect export from the EU (eg, the goods will move through the territory before exiting the EU properly).

However, for VAT only goods entered to IP, the VAT liability will be discharged if the goods are sent to the Channel Islands and other special territories as they are outside the ‘fiscal territory’ of the EU.