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HMRC internal manual

Customs Special Procedures Manual

Specific rules and processes relating to Outward Processing: rate of yield – introduction

The rate of yield is the quantity of compensating product produced from a given quantity of exported goods. It is used to calculate the amount of duty relief you can claim when you import your compensating products.

The expected rate of yield (or the method by which it is to be calculated) must be specified in the application for OP. It must be expressed clearly, for example 1 for 1, or 1 dress per 3 metres. The rate of yield must not be expressed as a percentage, as wastage in production is included in the calculation of the quantity of exported goods used.

If the import involves several different types of product or the products imported are made up from several different types of goods, it will help to clear the goods quickly, and possibly more cheaply, if a costed list or ‘bill of materials’ is provided for each product. The bill of materials should show the quantity of each type of exported goods used to produce one unit of each type of compensating product. This will make it simpler for the agent and customs to calculate the amount of duty relief available, and will also allow customs audit staff to check the OP records more quickly and accurately.

In cases where the rate of yield is not known at the time of application or the rate may vary, the application should be noted to say that the trader intends to use production records as the basis for establishing it. If the rate of yield on the application/authorisation form changes or is incorrect, the supervising office must be informed immediately.