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HMRC internal manual

Customs Special Procedures Manual

Production accessories: repeated use of catalysts

There is no limit on the number times a catalyst can be used provided that the processed products resulting from those operations are exported from the EU. Any extension of periods for discharge for catalysts may only be approved if they are to be used in further processing of goods for export from the EU.

If catalysts used on processed products that were re-exported can be re-used and are subsequently released to free circulation, the ‘economic’ value of the catalyst should be taken into account. The economic value can be determined by dividing:

  • the value of catalyst used on processed product(s) that were re-exported, and
  • the number of times or length of time, the catalyst can be re-used for the same purpose.

This ‘value’ should be deducted from the original value of the catalyst that was entered to IP.

For example: if a catalyst entered to IP can be used for 10 years:

Catalyst imported Relief on catalyst
   
Value £10,000  
  The economic value of the catalyst would be 10 years / £10,000 = £1,000 per year
  Re-useable for 10 years
  The proportional value of the catalyst used to produce the processed products would be £1,000  
  10 processed products produced during the first year and subsequently re-exported. The catalyst is then released to free circulation The remaining proportional value of the catalyst released to free circulation would be £10,000 - £1000 = £9000

Notice 3001/2015, Annex D Section 4.7