SPE14060 - Specific rules and processes relating to Outward Processing: Standard Exchange System (SES) with prior importation

Note: This manual is under review following Brexit and is likely to be withdrawn.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.

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.

The trader must normally export the goods being replaced within two months of importing the replacement goods. 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 extensio.

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

. 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.

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

The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018

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