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HMRC internal manual

Customs Special Procedures Manual

Specific rules and processes relating to Outward Processing: Standard Exchange System (SES) with prior importation

Under SES with prior importation, traders may import replacements before they export the faulty goods. When this facility is used, the importer must lodge security in full for the potential amount of import duties and VAT on the replacement goods (UCC Article 262 (1)).

The acceptable forms of security are described in the CAA Manual.

The trader must normally export the goods being replaced within two months of importing the replacement goods (UCC Article 262 (2)). This period may be extended however, even after the initial two months has expired, provided the authorisation holder can give a satisfactory reason for requiring the extension (UCC Article 262 (3)).

HMRC will discharge security upon payment of any import duties due, and/or on production of evidence that the goods being replaced have properly discharged from the procedure* (UCC IA Article 264). *For goods replaced under warranty, the supplier may not require return of the faulty goods. In such cases they may be placed under another customs procedure or, if destroyed, appropriate evidence of the destruction (certificate of destruction) may be accepted in lieu of actual attendance at the destruction.