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HMRC internal manual

Customs Special Procedures Manual

Production accessories: accounting procedures

The following table only concerns duty liability on catalysts used in processing. For duty liability on any goods that are entered to IP for processing please see SPE13225 of this guidance.

Any residue from the catalyst that results from its use in processing should be treated as a Secondary Processed Product (SPP) (see SPE13455).

During the processing operation Relief/charges due on the catalyst
   
The catalyst is entirely used up and all products produced (main and secondary processed products) are exported from the EU Full duty relief is available on all of the catalyst
The catalyst is entirely used up but only a percentage *of the products produced are *exported from the EU. Duty relief is available on the amount of catalyst used to produce the quantity of processed products that are exported.
  Duty will be due on the amount of catalyst used to produce the quantity of processed products on which any customs debt is due/processed free circulation goods not exported.
The catalyst is only partly used up in the processing operation and only a percentage of the main processed product are exported from the EU Duty will be due on any catalyst used to produce the quantity of processed products on which any customs debt is due/processed free circulation goods not exported.
  If the used catalyst is left over refer to SPE13455 below.
The catalyst can be re-used Duty will be due on any catalyst used to produce the quantity of processed products on which any customs debt becomes due/processed free circulation goods not exported.
  Duty will also be due on the proportion of catalyst used to produce the processed product(s) that were exported, unless that proportion of catalyst:
  * is also re-exported
  * destroyed under customs supervision, or
  * an extension of the throughput period for the catalyst can be approved.
  Where the catalyst will be released to free circulation, duty due should take into account the proportional ‘economic’ value of the catalyst (see SPE13460).

Council Regulation (EU) 952/2013, Article 85