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HMRC internal manual

Customs Special Procedures Manual

Discharge to free circulation: general

Liability for the customs duties and Import VAT suspended on goods entered to Inward Processing may be discharged to free circulation upon full payment of the customs duties due (including anti-dumping duty and others) and import VAT.

In most circumstances, IP traders need prior approval from the supervising office to discharge IP goods to free circulation. A free circulation declaration is required to be submitted to CHIEF to enable the collection of the debt due.

Free circulation declarations

Unless the authorisation holder is authorised to account for discharges under a ‘general release to free circulation’ approval (see SPE13220), the authorisation holder must complete a free circulation declaration (SAD copy 6, 7 and 8) each time IP goods are approved to be discharged to free circulation and submit this to CHIEF.

Licensed and restricted goods

If IP goods to be discharged are subject to import/export restrictions or limits (see SPE13240 and SPE13245).

Authorisations involving more than one Member State

For goods discharged under an authorisation involving more than one Member State, the import charges due are paid in the Member State where the goods are discharged. When goods entered to IP in another Member State are discharged to free circulation in the UK, the INF1 procedure may be used. An INF1 should be presented with the Bill of Discharge (BoD1). For further information on INF1 completion and process see SPE13615.

Council Regulation (EU) 952/2013, Article 22; Commission Implementing Regulation (EU) 2015/2447, Article 26