SPE14020 - Specific rules and processes relating to Outward Processing: scope of the Outward Processing (OP) procedure

Note: This manual is under review following Brexit and is likely to be withdrawn. If there is anything within this manual you use regularly, please email hmrcmanualsteam@hmrc.gov.uk to let us know. Please check the other guidance available on GOV.UK from HMRC.

The purpose of OP

The procedure allows for:

  • goods to be temporarily exported to undergo processes not available within the UK
  • faulty goods to be returned to a third country for repair, or
  • replacement with equivalent goods under the Standard Exchange System (SES).

Examples of usage of OP:

  • goods may be exported to undergo technical processes not available in the UK
  • faulty goods may be exported for repair (or replacement under SES (Standard Exchange System)) The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 Part 4 Chapter3(29)
  • repaired goods may be re-imported with total or partial relief from duty
  • SES may be used to import replacement goods before the goods they are replacing have been exported (‘prior import of replacement products’)
  • Inward Processing (IP) goods may be temporarily exported under OP (any duty due on the process or repair is added to the amount suspended when the goods are re imported to IP) .

Outward Processing is not allowed for the following:

  • where the export results in a repayment or remission of import duty
  • the goods were, prior to export, released to free circulation at an end-use rate but the goods have not been put to an authorised use (other than repair)
  • goods where their export results in an export refund
  • where any other financial advantage under UK Agricultural Policy is obtained by the export of the goods

Additionally, SES cannot be used for UKAP goods see SPE14030

https://www.gov.uk/guidance/using-similar-goods-to-replace-customs-special-procedure-goods

Note - Northern Ireland (NI) Customs Authorisations will continue to fall within the provisions of the Union Customs Code (UCC), as retained by the European Union (Withdrawal) Act 2018 and CEMA 1979