SPE15325 - Usual Forms of Handling (UFH), other processing and records: losses prior to or during processing

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It should be remembered that if the warehouse keeper chooses to use the nature, customs value and quantity of the goods prior to UFH to calculate the customs debt no allowance can be made for production losses that occur as a result of the form of handling undertaken. See SPE15205 for additional information.

Losses that occur prior to the UFH when calculating the nature, customs value and quantity prior to UFH can be considered as being non-chargeable losses where there is sufficient evidence that the loss occurred prior to the UFH. The following issues should however be taken into consideration:

• it must be demonstrated that the loss resulted solely from the nature of the goods and that negligence by the trader was not involved, for example inadequate storage methods, and
• that there is a robust audit trail between the quantities of goods received, entered into the records and subsequently entered into the UFH process.

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.