Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

EC export preference

HM Revenue & Customs
, see all updates

Control: accounting segregation


Under normal circumstances a manufacturer is required to physically segregate originating and non-originating materials to ensure that only the former are used for manufacturing goods intended for export under preference.


Officers may authorise exporters to use this procedure if they meet the following conditions:

  • the need to be able to use accounting segregation due to the cost/impracticability of using physical segregation
  • the manufacturer regularly exports to preference giving countries
  • any originating/non-originating materials used must be such that they are identical/inter-changeable in terms of technical and physical characteristics
  • the accounting system to be used must be adequate to ensure that no more goods receive originating status than would have been the case if the materials had been physically segregated
  • the ‘records’ must show that the manufacturer was ‘in credit’ for originating materials at the time of manufacture or at the time of export
  • the ‘records’ must also include sales to EU/UK customers where the manufacturer is aware that the goods supplied will be exported at a later date as preference goods
  • any approvals should be notified to the UoE so central records can be maintained.