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HMRC internal manual

Customs Special Procedures Manual

Equivalence: 'standard' equivalence

Assuming goods are equivalent, an authorisation holder can enter goods to IP and use those goods or equivalent free circulation goods in their processing operation. The authorisation holder can hold the goods separately or in a common stock. It will not matter whether the actual items processed and disposed of for IP purposes were entered to IP, all that will need to be checked is that quantity of goods entered to IP were satisfactorily disposed of within the agreed period for discharge.

If goods held in a common stock are destroyed by accident or there is an irretrievable loss, the authorisation holder may not be able to produce evidence of the actual quantity of IP goods lost or destroyed. In such cases, the percentage loss can be accepted on the basis of the proportion of IP goods to equivalent free circulation stock that was held until the time the loss occurred.

Commission Implementing Regulation (EU) 2015/2447, Articles 264 and 268