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HMRC internal manual

Customs Special Procedures Manual

Equivalence: prior export equivalence (PEE)

Please note this section remains under review as discussion in EU committee on the use of the INF5 continue.

PEE applies where free circulation goods equivalent to those identified in box 8 of the SP3 are exported before non-Union goods (SP3 box 7) are entered to IP.

The quantity of authorised equivalent goods, contained within the exported product determines the authorisation holders ‘duty credit’. The duty credit is offset when the same quantity of non-Union goods are subsequently entered to IP within the 6 month time limit. The INF5 procedure allows for the amounts of EU goods exported and the third country replacement goods imported to be accounted for.

SPE13690 of this guidance now includes some scenarios from an EU paper on when an INF5 is required.

Council Regulation (EU) 952/2013, Article 223; Commission Implementing Regulation (EU) 2015/2447, Article 269

Goods exported under prior export equivalence must be exported under customs control. This provides for the supervising office to monitor exports using equivalence and the opportunity to examine or take samples to verify the equivalence criteria are met.

The replacement non-Union goods will normally be imported from a third country. However, replacement goods can also be taken from customs warehousing, or another IP authorisation holder.