SPE16850 - Miscellaneous: diversion of Inward Processing (IP) goods to Authorised Use relief: disposing of goods following revocation

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IP should not be authorised where the intention is to release goods to free circulation. Diversion of IP goods to Authorised Use may however be approved, provided it is not a regular or normal method of disposal, for example, where an export order has been cancelled.

In these circumstances, if the IP goods being diverted are eligible for Authorised Use, subject to being put to a use for a prescribed purpose, duty on diversion can be calculated at the Authorised Use rate provided, at the time of release, the trader holds an Authorised Use authorisation or is applying for one and all the conditions for granting Authorised Use are satisfied. The goods entered to IP at the time of import must have been eligible for Authorised Use.

Any duty due will be calculated at the Authorised Use rate of duty on the value of the goods at import.

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.