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HMRC internal manual

Customs Special Procedures Manual

Specific rules and processes relating to Outward Processing: authorisation examples

The following examples are provided as a guide to help traders to decide which type of OP authorisation would be appropriate.

Example 1

A trader wishes to export fabric from the UK to Bangladesh to be manufactured into ladies blouses on a regular basis all of which will be re-imported to the UK.

The trader needs a full OP authorisation (application form SP4).

Example 2

A trader wishes to export leather from Italy to Romania to be manufactured into shoes which will all be re-imported to the UK. No goods will be exported from the UK.

The trader may apply to the Italian customs authority or to customs in the UK for a full authorisation. If the trader maintains their main accounts in the UK, they may request that the authorisation should be supervised by their local Customs office in the UK.

They will need to present INF2s at export in Italy, to allow for the re-import of the processed products into the UK.

Example 3

A trader based in the UK wishes to export silicon wafers from the UK to Malaysia to be etched with microcircuits. They will also export frames from France to Malaysia into which the wafers will be encapsulated. The resulting silicon chips will be re-imported into the UK, France and Germany.

The trader should apply for a full authorisation involving other Member States on Annex 12* form (Contact Unit of Expertise who have produced guidance notes for its completion). The authorisation should include the UK and France. They can apply to either customs authority but should normally apply to the Member State in which their records are maintained. Germany does not have to be included as no goods are being exported from there.

Annex 12 of the UCC Transition Document (TDA). Full title – *Annexes to the Commission Delegated Regulation (EU) 2016/341 – 17 December 2015, establishing transitional rules for certain provisions of Regulation EU No 952/2013 of the European Parliament and of the Council where the relevant electronic systems are not yet operational.

Example 4

A UK based trader imports mobile phones from Japan, and distributes them through dealerships in France, Germany, Belgium and the Netherlands. They wish to send faulty phones back to the manufacturer for repair under warranty. The repaired units will all be re-imported to the UK for test before being returned to the owners.

They may apply for an authorisation covering all five Member States. INF2s will be needed for exports from France, Germany, Belgium and the Netherlands.

Alternatively, the trader may export the faulty goods directly to Japan from each Member State (if Authorisation by Declaration is available in the Member States). They will need to present INF2s to French, German, Belgian and Dutch customs at export to allow the repaired goods to be triangulated to the UK.

Example 5

A private individual wishes to send his daughter’s watch by post to the USA for repair.

Private individuals do not require prior authorisation for the repair of goods which are their personal property or that of members of their family. The exporter must obtain a certificate of overseas posting (Form C&E 132) from the Post Office when he posts the watch to the USA.

When the watch is returned, he must contact the officer at the parcel depot and ask for the goods to be entered to OP under the non-commercial repairs procedure, quoting CPC 61 00 000 on the C88.

Example 6

A private individual wishes to export personal gold jewellery from the UK to India, to have it remodelled and the stones reset before re-importing it to the UK.

Subject to production of satisfactory evidence regarding export, and appropriate means of identifying the exported jewellery (eg: photographs of the stones taken before export, assay certificates, etc) being available they may enter the goods under CPC 61 00 000 at re-import.

Example 7

A UK trader has a regular need to export faulty CD players to Taiwan for replacement under warranty. The replacements are imported to the UK.

They should apply for a full authorisation (Form SP4) with approval for the Standard Exchange System (SES).

Example 8

A trader imports telephone equipment to the UK and maintains a stock in customs warehouse, drawing from this stock as required. Faulty equipment is returned to Singapore for repair for which they will be charged. They wish to draw stock from warehouse to replace faulty items before these are exported for repair. The repaired goods are returned to customs warehouse in the UK.

The trader requires a full authorisation with authority to use the standard exchange system with prior importation. Goods drawn from warehouse must be entered to free circulation using CPC 48 00 003, and a guarantee will be required to cover the full potential duty and VAT charges. The trader must export the faulty goods within 2 months, using CPC 21 00 000. This discharges OP and the security.

When goods re-imported after repair are returned to warehouse they should be entered under the normal warehousing CPC 71 21 000, as they will no longer be OP goods.