SPE15205 - Losses in warehouse: production losses

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In general the loss of goods through production, for example losses occurring through certain types of handling, can be treated as non-chargeable losses under SPE15185, unless as a result of a Usual Form of Handling see SPE15335. You should however ensure that such losses, if a regular occurrence, were requested at the time of application for authorisation and are detailed in the authorisation letter. (Authorisation must be obtained prior to any loss rate being applied.)

Any losses in excess of those detailed in the authorisation should be investigated thoroughly to ensure that a genuine loss has occurred, and the loss is not an attempt to avoid other customs requirements, for example licensing or anti-dumping duty.

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.