HMRC internal manual

Customs Special Procedures Manual

SPE14420 - Specific rules and processes relating to Outward Processing: rate of yield – determining the debt due

The rate of yield is a crucial aspect of inward and outward processing and it is crucial that the proportion of import (for IP) and ‘temporary’ export (for OP) goods incorporated into the finished, processed products is calculated accurately. It is, therefore, essential that staff dealing with OP traders understand the concept of the rate of yield, and agree appropriate practical methods of establishing it during the authorisation process.

In order to correctly determine the amount of the customs debt incurred for processed products resulting from the Outward Processing procedure (or replacement products for Standard Exchange System (SES) the amount of duty shall be calculated on the basis of the cost of the processing operation undertaken outside the customs territory of the Union.

Calculating the amount of duty due on OP processed goods

Where specific import duty is due to be applied in relation to the processed products resulting from the Outward Processing procedure (or replacement products for SES), the amount of the import duty shall be calculated as follows:

the customs value of the processed products (at the time of acceptance of the customs declaration for release for free circulation)

minus

the statistical value of the corresponding temporary export goods at the time when they were placed under the Outward Processing procedure

multiplied by

the amount of import duty applicable to the processed products or replacement products

divided by

the customs value of the processed products or replacement products

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