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HMRC internal manual

Customs Special Procedures Manual

Discharge to free circulation: duty calculations on discharge

The duty liability discharged or due on goods depends on the proportion of goods entered to IP that are contained in the goods exported, moved or discharged to free circulation. This is determined using the rate of yield agreed for the processing authorised (see SPE13015). Duty liability on each processed product must then be calculated using the quantity method for processed products, quantity method for import goods or the value method.

Duty liability will only be reduced if the goods are eligible to:

  • a reduced or nil rate of duty under End Use
  • a preferential rate of duty (see SPE13245)
  • they are secondary processed products identified in the authorisation, or
  • where duty free admission is available for identical imported goods.

Council Regulation (EU) 952/2013, Article 77 (2), Article 86 (3) and Article 172 (2); Commission Delegated Regulation (EU) 2015/2446, Article 73; Commission Implementing Regulation (EU) 2015/2447, Article 218 (c)