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HMRC internal manual

Customs Special Procedures Manual

Completion of End-use and discharging liability: End-use relief and Outward Processing Relief (OPR)

Goods previously imported to the Union under the End-use arrangements may be exported for processing under the OPR arrangements. Similarly, OPR compensating products may be re-imported to free circulation in the Union at a reduced rate of duty, if they continue to qualify for End-use. Prior authorisation to use the OPR arrangements is required.

However, if a reduced End-use duty rate is claimed on compensating products certain restrictions may apply to the amount of duty relief which can be claimed under OPR. If the exported goods were previously imported to the Union at a reduced End-use rate of duty, or, are of a type which could qualify for an End-use rate if imported, relief under OPR is restricted as follows:

  • goods previously imported to End-use will be restricted to the actual amount of duty paid on them when they were originally imported to End-use
  • goods which could qualify for End-use will be restricted to the reduced rate of duty which would apply to them if imported under End-use arrangements.

It should be noted that if:

  • the compensating products are eligible for a ‘nil’ duty rate under End-use, or
  • the exported goods were previously imported at a ‘nil’ duty rate under End-use, or
  • the exported goods could qualify on import for a ‘nil’ duty rate under End-use
  • there is no benefit to be gained from the use of the OPR arrangements. In the first case, the compensating products could be entered to End-use free of duty, and in the second two cases, there would be no duty to deduct and therefore no relief available.