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HM CUSTOMS AND EXCISE

http://www.hmce.gov.uk

Notice 221
Inward processing relief
January 2003 - This notice has updates at the end of this document
This notice cancels and replaces Notice 221 (August 2002). Details of any changes to the previous
version can be found in paragraph 1.1 of this notice.

Further help and advice

If you need general advice or more copies of Customs and Excise notices, please ring the National Advice Service on
0845 010 9000. You can call between 8.00 am and 8.00 pm, Monday to Friday.

If you have hearing difficulties, please ring the Textphone service on 0845 000 0200.

If you would like to speak to someone in Welsh, please ring 0845 010 0300, between 8.00 am and 6.00 pm, Monday to
Friday.

All calls are charged at the local rate within the UK. Charges may differ for mobile phones.

Other notices on this or related subjects:

Notice 60 Notice 237 Notice 750
Notice 143 Notice 275 Notice 770
Notice 199 Notice 276 Notice 827
Notice 2 Notice 334 Notice 828
Notice 232 Notice 375 Notice 990
Notice 235 Notice 702 Notice 1000
Notice 236 Notice 704
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Contents

1. Introduction............................................................................................................................................. 8
1.1 What is this notice about? ........................................................................................................................ 8
1.2 What’s changed? ...................................................................................................................................... 8
1.3 The purpose of IPR .................................................................................................................................. 8
1.4 Who can use IPR...................................................................................................................................... 8
1.5 How IPR works ......................................................................................................................................... 8
1.6 Suspension ............................................................................................................................................... 8
1.7 Drawback.................................................................................................................................................. 9
1.8 How best to use this notice....................................................................................................................... 9
1.9 What law covers this notice? .................................................................................................................... 9
1.10 Where can I obtain further information about IPR? .................................................................................. 9
2. General information about authorisation........................................................................................... 11
2.1 Why do I need an authorisation?............................................................................................................ 11
2.2 What types of authorisation are there? .................................................................................................. 11
2.3 How do I know which one to use? .......................................................................................................... 11
2.4 What is an economic code? ................................................................................................................... 11
2.5 How long does authorisation take? ........................................................................................................ 11
2.6 How long does an authorisation last? .................................................................................................... 11
2.7 Responsibilities of the authorisation holder............................................................................................ 12
2.8 Do I need to provide security?................................................................................................................ 12
2.9 Refusal of an application for authorisation ............................................................................................. 12
2.10 Can I alter or amendment my authorisation? ......................................................................................... 12
2.11 How do I renew my authorisation? ......................................................................................................... 13
2.12 How do I cancel my authorisation? ........................................................................................................ 13
2.13 Customs checks ..................................................................................................................................... 13
3. Application – conditions and requirements ...................................................................................... 14
3.1 Period required to enter process and dispose of IPR goods.................................................................. 14
3.2 Inventory system .................................................................................................................................... 14
3.3 Restricted through-put periods ............................................................................................................... 14
3.4 Compensating products.......................................................................................................................... 14
3.5 Reduced rates of duty on secondary compensating products (own rates) ............................................ 15
3.6 Rate of yield............................................................................................................................................ 15
3.7 Rate of yield (processing/trimming of beef fillets)................................................................................... 15
3.8 Standard rates of yield for agricultural goods......................................................................................... 15
3.9 How to check if a standard rate of yield applies ..................................................................................... 16
3.10 The economic test .................................................................................................................................. 16
3.11 Who carries out the test?........................................................................................................................ 16
3.12 Records .................................................................................................................................................. 16
3.13 Using normal commercial records .......................................................................................................... 17
3.14 How long records must be kept for......................................................................................................... 17
4. Simplified authorisation....................................................................................................................... 18
4.1 When can I use a simplified authorisation?............................................................................................ 18
4.2 Are there any other restrictions on the use of simplified authorisation procedures? ............................. 18
4.3 How do I apply? ...................................................................................................................................... 18
5. Local authorisation (UK only) ............................................................................................................. 20
5.1 When might I need a local authorisation? .............................................................................................. 20
5.2 How do I apply for a local authorisation? ............................................................................................... 20
6. Specific authorisation (UK only) ......................................................................................................... 21
6.1 When might I need a specific authorisation?.......................................................................................... 21
6.2 How do I apply for a specific authorisation?........................................................................................... 21
7. Single Community authorisation ........................................................................................................ 22
7.1 When might I need a single community authorisation?.......................................................................... 22
7.2 How do I apply for a single community authorisation? ........................................................................... 22
8. Integrated authorisation ...................................................................................................................... 23
8.1 When might I use an integrated authorisation?...................................................................................... 23
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8.2 How do I apply for an integrated authorisation? .....................................................................................23

9. Retrospective IPR authorisation..........................................................................................................24
9.1 Can I apply for a retrospective IPR authorisation? .................................................................................24
10. Importation and entry procedures.......................................................................................................25
10.1 How do I enter goods to IPR? .................................................................................................................25
10.2 Authorising a third party to act on your behalf ........................................................................................25
10.3 Can I amend an entry?............................................................................................................................26
10.4 How do I amend an entry? ......................................................................................................................26
10.5 Goods subject to preference import licensing or other import restrictions..............................................26
10.6 What about goods that need a DTI import licence?................................................................................26
10.7 Firearms, ammunition or nuclear materials.............................................................................................26
10.8 Non-quantitative import restrictions (surveillance licenses) ....................................................................26
10.9 Ozone depleting substances ...................................................................................................................26
10.10 Restrictions on animals and animal products..........................................................................................26
10.11 How do I import IPR goods by post?.......................................................................................................26
10.12 Information document Form C1055 ........................................................................................................27
11. Charges for secondary compensating products and using standard rates of yield .....................28
11.1 How to calculate charges on secondary compensating products ...........................................................28
11.2 How to calculate charges on secondary compensating products if an own rate applies........................28
11.3 How do I use the standard rates of yield?...............................................................................................28
12. IPR transfers ..........................................................................................................................................29
12.1 How can IPR goods be transferred? .......................................................................................................29
12.2 Do I need to provide a guarantee when I transfer goods?......................................................................29
12.3 Do I need to be authorised to transfer goods?........................................................................................29
12.4 How do I carry out transfers within the same authorisation? ..................................................................29
12.5 Local clearance procedure (LCP) ...........................................................................................................29
12.6 Transfer using the declaration procedure (UK only) ...............................................................................29
12.7 Transferring goods subject to quantitative restrictions, tariff quotas or other import restrictions............30
12.8 Goods diverted to the Community market...............................................................................................30
12.9 Transfer using Form C&E 811 ................................................................................................................30
12.10 Simplified procedures for transfers within the UK ...................................................................................30
12.11 Simplified C&E 811 procedures ..............................................................................................................31
12.12 Commercial documents...........................................................................................................................31
12.13 Commercial confidentiality ......................................................................................................................31
12.14 Transfer of IPR suspension goods between Member States..................................................................31
12.15 Simplified transfer procedures for IPR suspension goods between Member States..............................31
12.16 What is Form INF 1? ...............................................................................................................................32
12.17 Transferring IPR goods between Member States under a Single Community authorisation .................32
12.18 Transferring IPR drawback goods to or from another Member State .....................................................32
12.19 Transferring goods within an integrated authorisation ............................................................................33
13. Equivalence ...........................................................................................................................................34
13.1 What is equivalence? ..............................................................................................................................34
13.2 What conditions apply to equivalence?...................................................................................................34
13.3 How do I know when goods are equivalent?...........................................................................................34
13.4 Using goods at a more advanced stage of processing than the imported goods ...................................35
13.5 Authorisation to use equivalence ............................................................................................................35
13.6 How equivalence can be used ................................................................................................................35
13.7 What is Prior export equivalence (EX/IM)? .............................................................................................35
13.8 How do I export equivalent goods?.........................................................................................................36
13.9 Time limits for importing the replacement goods (EX/IM) .......................................................................36
13.10 What is Triangulation? (EX/IM - Form INF 5)..........................................................................................36
13.11 How do I export goods under triangulation (EX/IM) ................................................................................36
13.12 How do I import goods to IPR under triangulation (EX/IM)? ...................................................................36
13.13 What is Prior import equivalence (IM/EX)? .............................................................................................37
13.14 How do I import goods using Prior import equivalence?.........................................................................37
13.15 How do I export goods using Prior import equivalence?.........................................................................37
13.16 Triangulation Import/Export (IM/EX ) - Form INF 9 .................................................................................37
13.17 What is the Customs status of the goods imported and exported under equivalence?..........................37
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14. Special equivalence rules.................................................................................................................... 39

14.1 Rice......................................................................................................................................................... 39
14.2 Wheat ..................................................................................................................................................... 39
14.3 Sugar ...................................................................................................................................................... 39
14.4 Live animals and meat products............................................................................................................. 39
14.5 Milk and milk products ............................................................................................................................ 39
14.6 Other goods ............................................................................................................................................ 39
14.7 Genetically modified foods ..................................................................................................................... 39
15. Export and other eligible disposals.................................................................................................... 40
15.1 Discharging IPR...................................................................................................................................... 40
15.2 Eligible disposals .................................................................................................................................... 40
15.3 Pre-entry of goods for export.................................................................................................................. 40
15.4 Exporting goods outside the Community................................................................................................ 40
15.5 Postal export procedures........................................................................................................................ 41
15.6 Special rules for export to certain countries ........................................................................................... 41
15.7 Exporting goods from the Community via another Member State ......................................................... 41
15.8 Exporting goods from the Community using the Community Transit procedure.................................... 41
15.9 Transferring goods to another customs procedure within the UK .......................................................... 42
15.10 Transferring goods to another IPR authorisation holder ........................................................................ 43
15.11 Transferring goods to another Member State for subsequent entry to another customs procedure ..... 43
15.12 Transfers to Export Shops in the UK (except where the goods are intended for passengers
travelling to other Community countries) ................................................................................................ 43
15.13 Transferring goods to DODIM relief........................................................................................................ 43
15.14 Transferring goods to armed forces ....................................................................................................... 44
15.15 Transfers to NAAFI ................................................................................................................................. 44
15.16 Sales to Embassies, Consulates - (people entitled to diplomatic privilege including diplomats from
countries outside the EC based in the EC and supplies to EC embassies outside the EC) .................. 44
15.17 Use as stores or bunkers on ships travelling outside the UK eg food for passengers........................... 44
15.18 Use as commissary stores ..................................................................................................................... 44
15.19 Use in tray type meals - (meals delivered direct for export from the UK on intra-EC flights or cross
channel ferries but not cross channel trains).......................................................................................... 44
15.20 Aviation fuel used on third country and intra Community flights (but not UK flights) ............................. 44
15.21 Transfer to an Aircraft spare parts depot (ASPD) (suspension goods only) .......................................... 44
15.22 Temporary export outside the EC (IPR and OPR) ................................................................................. 44
15.23 Diverting IPR suspension goods to the Community market................................................................... 45
15.24 Diverting goods entered under a simplified authorisation (Form C101)................................................. 45
15.25 Diverting goods subject to import licence restrictions ............................................................................ 45
15.26 Diverting goods subject to tariff quotas or ceilings ................................................................................. 45
15.27 Duty due on IPR goods diverted to the Community market ................................................................... 45
15.28 Methods of calculating duty .................................................................................................................... 47
15.29 Diverting IPR goods to End Use relief .................................................................................................... 47
15.30 Destruction.............................................................................................................................................. 48
15.31 Customs Debt ......................................................................................................................................... 48
15.32 Intrastat................................................................................................................................................... 48
16. Suspension returns and Drawback repayment claims..................................................................... 49
16.1 Suspension returns................................................................................................................................. 49
16.2 Simplified suspension returns................................................................................................................. 49
16.3 Claiming repayment of duty on IPR drawback goods ............................................................................ 49
17. Compensatory interest ........................................................................................................................ 50
17.1 Why compensatory interest is charged? ................................................................................................ 50
17.2 How compensatory interest is calculated? ............................................................................................. 50
17.3 Other ways of calculating the interest .................................................................................................... 50
17.4 Compensatory interest rate .................................................................................................................... 50
17.5 Payment of compensatory interest ......................................................................................................... 50
17.6 Circumstances when compensatory interest will not be due ................................................................. 50
18. Aircraft construction and repair ......................................................................................................... 52
18.1 General ................................................................................................................................................... 52
18.2 Goods and processes excluded from the simplified procedures............................................................ 52
18.3 Definition of civil aircraft and aircraft parts ............................................................................................. 52
18.4 Simplified procedures ............................................................................................................................. 52
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18.5 Dual purpose goods ................................................................................................................................53

18.6 IPR and End Use.....................................................................................................................................53
18.7 How to apply to use the simplified procedures........................................................................................53
18.8 Period required to enter, process and dispose of the IPR goods ...........................................................53
18.9 Returning goods to stock.........................................................................................................................54
18.10 Transferring goods ..................................................................................................................................54
18.11 Preference ...............................................................................................................................................54
18.12 Suspension returns and drawback claims...............................................................................................54
19. Inward processing in a Customs warehouse or Free Zone ..............................................................55
19.1 General....................................................................................................................................................55
19.2 How to apply for approval........................................................................................................................55
19.3 Simplified transfer procedures ................................................................................................................55
19.4 Diverting goods from warehousing or a free zone to the Community market.........................................55
19.5 VAT..........................................................................................................................................................55
20. Continental Shelf ...................................................................................................................................56
20.1 General....................................................................................................................................................56
20.2 Transfers .................................................................................................................................................56
20.3 Authorisation to use simplified procedures to declare goods despatched to or returned from the
continental shelf outside EC territorial waters .........................................................................................56
20.4 Inward manifest .......................................................................................................................................56
20.5 Outward manifest despatches.................................................................................................................57
21. Tax free shopping .................................................................................................................................58
21.1 General....................................................................................................................................................58
21.2 Eligible Retailers......................................................................................................................................58
21.3 Application for authorisation ....................................................................................................................58
21.4 Sales to entitled customers .....................................................................................................................58
21.5 Period to enter process and dispose of IPR goods.................................................................................58
21.6 Drawback claims/suspension returns......................................................................................................58
22. IPR Scotch Whisky scheme .................................................................................................................59
22.1 General....................................................................................................................................................59
22.2 Application for authorisation ....................................................................................................................59
23. Production accessories........................................................................................................................60
23.1 Production accessories, catalysts and agents ........................................................................................60
23.2 Authorisation ...........................................................................................................................................60
23.3 Repeated use ..........................................................................................................................................60
23.4 Discharging duty liability..........................................................................................................................60
23.5 Diverted IPR goods .................................................................................................................................60
24. Miscellaneous questions......................................................................................................................62
24.1 Stolen goods ...........................................................................................................................................62
24.2 Processed cheese...................................................................................................................................62
24.3 Supply balance goods .............................................................................................................................62
24.4 Cultural goods .........................................................................................................................................62
25. List of territories inside/outside the EC for customs duty and VAT purposes...............................63
25.1 Territories are inside the EC for customs duty and VAT purposes .........................................................63
25.2 Territories inside the EC for Customs duty purposes (not VAT) .............................................................63
25.3 Territories outside the EC for customs duty and VAT purposes .............................................................64
26. Goods that require an economic test..................................................................................................65
26.1 Agricultural products covered by Annex I to the Treaty ..........................................................................65
26.2 Goods not covered by Annex I to the Treaty resulting from the processing of agricultural products .....65
26.3 Fishery products......................................................................................................................................66
27. Conditions and restrictions of IPR drawback ....................................................................................67
27.1 General....................................................................................................................................................67
27.2 Goods excluded from drawback..............................................................................................................67
27.3 Situations where drawback will not be repaid .........................................................................................67
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28. Conditions of IPR suspension ............................................................................................................ 68

29. Customs procedure codes for import to IPR..................................................................................... 69

29.1 Simplified authorisations (Form C101) ................................................................................................... 69
29.2 Local authorisations (Form C&E 810) .................................................................................................... 69
29.3 Specific authorisations............................................................................................................................ 70
29.4 Entry to IPR drawback from another customs procedure ...................................................................... 70
29.5 Temporary export and re-import under OPR of IPR drawback goods (see Notice 235) Outward
processing relief ..................................................................................................................................... 71
29.6 Transferring IPR drawback goods to another customs procedure......................................................... 71
29.7 IPR drawback goods transferred to another customs procedure being diverted to free circulation ..... 72
29.8 Exporting IPR drawback goods outside the EC ..................................................................................... 72
29.9 Entry to IPR suspension (triangulation and “VAT only” .......................................................................... 72
29.10 Entry to IPR suspension from another customs procedure.................................................................... 72
29.11 Temporary export and re-import under OPR of IPR suspension goods (see Notice 235 Outward
processing relief) .................................................................................................................................... 73
29.12 IPR suspension goods being diverted to free circulation ....................................................................... 74
29.13 Transferring IPR suspension goods to another customs procedure ...................................................... 75
29.14 Entering goods to the export procedure using SDP/LCP....................................................................... 75
29.15 Exporting suspension goods from the Community................................................................................. 75
30. Guidance notes on economic codes and evidence required for authorisation under certain
economic codes ................................................................................................................................... 77
30.1 Code 10 (unavailability) .......................................................................................................................... 77
30.2 Code 11 (price) ....................................................................................................................................... 77
30.3 Code 12 (contractual obligations)........................................................................................................... 77
30.4 Code 30 .................................................................................................................................................. 78
30.5 Code 99 .................................................................................................................................................. 78
31. Form C101 and completion notes....................................................................................................... 79

32. Usual forms of handling ...................................................................................................................... 81

33. Dairy products referred to in Article 1(1) of Council Regulation 1255/99....................................... 82

34. Council Regulation (EEC) No 565/80 .................................................................................................. 83

35. Goods requiring a guarantee when transferred ................................................................................ 84

36. Form C&E 810 Application/authorisation form for inward processing relief................................. 85

37. Evidence of export from the Community ........................................................................................... 93

37.1 What proof of export do I need? ............................................................................................................. 93
37.2 New Export Scheme (NES) .................................................................................................................... 93
37.3 Photocopy export evidence .................................................................................................................... 93
37.4 Lost or mislaid export evidence .............................................................................................................. 93
37.5 Commercial certificate of shipment ........................................................................................................ 93
37.6 Sea/Air freight ......................................................................................................................................... 94
37.7 Exports by road via a "roll-on, roll-off" ferry............................................................................................ 94
37.8 Groupage or consolidation transactions................................................................................................. 94
37.9 Postal exports ......................................................................................................................................... 94
37.10 Merchandise in baggage ........................................................................................................................ 94
37.11 Ships’ stores and bunkers or aircraft stores, equipment etc .................................................................. 94
38. C&E 811 procedure .............................................................................................................................. 95
38.1 Movement of Form C&E811, (except suspension to drawback movements) ........................................ 95
38.2 Transfers from a suspension trader to a drawback trader are treated as below:................................... 95
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39. Transfer SAD - boxes to be completed where goods are transferred between authorisation
holders....................................................................................................................................................96

40. Form INF 7 (completion notes) ............................................................................................................97

41. Form INF 5 Triangulation......................................................................................................................98

42. Form INF 9 Triangulation......................................................................................................................99

43. Completing the SAD where IPR suspension or goods previously entered to suspension are
diverted to the Community market ....................................................................................................100

44. Examples of IPR duty calculations....................................................................................................101

44.1 Quantity method for compensating products ........................................................................................101
44.2 Quantity method for import goods .........................................................................................................101
44.3 Value method ........................................................................................................................................102
44.4 Example duty calculation using standard rates of yield ........................................................................103
45. Examples of interest calculations .....................................................................................................105
45.1 Example 1 .............................................................................................................................................105
45.2 Example 2 .............................................................................................................................................105
46. Application to be authorised to use simplified procedures to declare goods despatched to or
returned from the Continental Shelf..................................................................................................106

47. Continental Shelf authorised operator: supplementary declaration .............................................107

48. Regulation Articles..............................................................................................................................108

49. Simplified procedures.........................................................................................................................110

50. The New export system (NES) ...........................................................................................................111

50.1 What is NES? ........................................................................................................................................111
50.2 Are there any restrictions on the use of IPR in conjunction with NES? ................................................111
50.3 Do l have to amend my IPR authorisation in order to use NES? ..........................................................111
50.4 What CPCs do l have to use to enter the export procedure using SDP/LCP? .....................................111
50.5 Once my goods are in the export procedure, how do l move my goods to the frontier? ......................111
50.6 What information must l put on the PSA? .............................................................................................111
50.7 Do l still have to pre-enter my goods at export? ...................................................................................112
50.8 How do l prove that l have disposed of my IPR goods correctly?.........................................................112
50.9 What do l do if l want to use SDP/LCP but cannot provide all the information required on the PSA?..112
50.10 Can l use NES to send IPR goods to the Channel Islands? .................................................................112
51. Options for the movement of goods for export under NES LCP/SDP, full declarations and IPR
arrangements.......................................................................................................................................113
51.1 Movement of goods under CT...............................................................................................................113
51.2 Guarantee requirements .......................................................................................................................113
51.3 Export of IPR goods using inland clearance .........................................................................................113
51.4 Export of IPR goods using the arrangements .......................................................................................114
51.5 Export of IPR goods using Community transit ......................................................................................114
52. Cultural Goods ....................................................................................................................................116

53. Appeals.................................................................................................................................................117
53.1 Procedure for appealing against a Customs decision...........................................................................117
54. Glossary of terms and abbreviations................................................................................................118
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1. Introduction

1.1 What is this notice about?

It explains how you may be able to obtain duty relief on goods imported from outside the EC that are
processed and re-exported from the Community using Inward Processing Relief (IPR).
It has been restructured to improve readability and has also been updated. The main changes are
summarised in JCCC paper 02/09.
This Notice is not the law. It is our view of what the law says and nothing in this notice takes place of the law.
Any person who makes a false declaration or provides untrue information about goods entered to IPR may be
liable to penalties under the Customs and Excise Management Act 1979.
You can access details of any changes since January 2003 on our Internet website at www.hmce.gov.uk or
by telephoning the National Advice Service on 0845 010 9000.
This notice and others mentioned are available both on paper and on our website.

1.2 What’s changed?

The notice has been updated from the August 2002 version to reflect the introduction of the New Export
System. Paragraph 29.14 and sections 50 and 51 give new guidance about using IPR in conjunction with the
New Export System.

1.3 The purpose of IPR

IPR provides relief to promote exports from the EC and assist Community processors to compete on an equal
footing in the world market.
Duty is relieved on imports of non EC goods which are processed in the Community and re-exported provided
the trade does not harm the essential interests of Community producers of similar goods. It can provide relief
from customs duty, specific customs duty (previously CAP charges), anti-dumping duty, countervailing duty
but does not relieve excise duties. Import VAT is not due when entered to IPR suspension (see
paragraph 1.6) but is due if entered to IPR drawback (see paragraph 1.7).
Processing can be anything from repacking or sorting goods to the most complicated manufacturing.
You may also obtain relief if you receive IPR goods from another approved trader in the UK or another
Member State. If you dispose of the finished goods other than by re-export, you may still be able to claim
relief (see sections 12 and 15).
Section 25 lists EC and non EC territories for the purposes of customs duty and VAT.

1.4 Who can use IPR

· Individuals, partnerships or corporate bodies established within the European Community, acting on
their own behalf or representing a non Community body;
· individuals, partnerships or corporate bodies established outside the European Community provided
imports are of a non commercial nature.

1.5 How IPR works

There are two methods of duty relief, suspension or drawback. In either case there must be an intention to
re-export goods from the EC and an authorisation to enter goods to IPR will be required. Goods must be
processed within a certain period and records kept for all operations carried out. If you use suspension you
will also be required to submit returns detailing your receipts and disposals.
There are five types of authorisation, see paragraph 2.2. Processing of certain goods (see section 26) are
subject to a monetary limit of €150,000 per 8 digit CN code, per applicant, per calendar year. If the value of
these goods entered to IPR exceeds this limit and does not involve one of the processes listed in paragraph
4.1, an economic test must be carried out by DEFRA. No economic test is required for goods not listed in
section 26.

1.6 Suspension
Customs duties are suspended when the goods are first entered to IPR in the EC. Import VAT is not due
unless the goods are released to the Community market. If you plan to export all your IPR goods or products,
transfer them to another IPR authorisation holder or dispose of them in one of the other ways listed in section
15, suspension is likely to be the most suitable method for you.
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If you plan to export or transfer only a percentage, suspension can be used for that percentage of your
imports/receipts, based on a reasonable estimate. The remainder should be entered to free circulation with
full payment of duty and import VAT (unless another duty or VAT relief is available).
If you import/receive more goods under IPR suspension than you need for your export market or other eligible
disposals, you will have to divert the surplus goods to free circulation. You will have to pay the suspended
duty and import VAT and will also be charged compensatory interest from the date the goods were imported
to the EC (see section 17).
The goods listed in paragraph 27.2 must be entered to suspension. These include agricultural goods, some
licensable goods (mostly textiles) and any goods you intend to process under IPR in a Customs warehouse
or Free Zone (see section 19). The conditions for using suspension are listed at section 28.

1.7 Drawback
Customs duties and import VAT are paid when the goods are entered to IPR. You claim duty back only if you
export the goods or products, transfer them to an IPR suspension authorisation holder or dispose of them in
one of the other ways listed in section 15. You may be able to reclaim the import VAT as input tax. You will
not be able to reclaim duty on goods you destroy under Customs supervision or on any waste and scrap
which results from that destruction.
Except for goods listed in paragraph 27.2 which cannot be entered to drawback, this method may suit you if
you do not know how much of the goods you receive will be exported etc and you will not be charged
compensatory interest on any goods you release for use on the Community market. The conditions and
restrictions for using drawback are listed at section 27.
If you need help to decide which method is best for your business, contact our National Advice Service.

1.8 How best to use this notice

To qualify for relief certain conditions and requirements need to be met and followed. This Notice will help you
decide:
1 If your goods are of a type that can only be entered to suspension, (see paragraph 27.2)
2 The economic code under which your application will be made.
If an economic test is required you will need to provide supporting evidence (see paragraphs 2.4,
section 6 and section 30)
3 The type of authorisation you will need and how to apply for it (see paragraph 2.2)
4 How long you will need to be authorised for (see paragraph 2.6)
5 What records you need to keep (see paragraph 3.12)
6 How to enter goods to IPR (see paragraph 10.1)
7 How long you need to process the goods (see paragraph 3.1)
8 How you will account for and complete IPR including accounting for any by-products (see sections
11 and 15)
9 What returns or claims you need to make to Customs (see section 16)
10 How to receive or transfer IPR goods (see section 12)
11 Any simplified procedures you could use (see section 49)
1.9 What law covers this notice?
The law on IPR is published in the Official Journal of the European Community under Council Regulation
(EEC) No 2913/92 establishing the Community Customs Code and Commission Regulation (EEC) No
2454/93 which lays down provisions for its implementation. Section 48 identifies some of the Regulation
Articles that apply.
EC law on import VAT relief is contained in the 6th VAT Directive which is interpreted into UK law in the Value
Added Tax Act 1994 under which authority for the Value Added Tax Regulations 1995 were made. Other
National provisions and VAT Directives may also apply.

1.10 Where can I obtain further information about IPR?

This notice sets out the general principles of IPR; it does not attempt to explain every aspect in detail. You
can get further information by phoning our National Advice Service. If you have access to the Internet, you
can visit:
· our Internet website at www.hmce.gov.uk; or,
· the EC Commission website at www.europa.eu.int (we cannot provide any warranty as to the
accuracy or completeness of this site).
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If you want to discuss how IPR may assist your planned export operations, you can contact the Department
of Trade and Industry (DTI) or the Department for Environment, Food and Rural Affairs (DEFRA).
Copies of the Official Journal can be obtained from:
The Stationery Office
PO Box 29
Norwich
NR3 1GN
Telephone orders/General enquiries 0870 600 5522
Fax orders 0870 600 5533
E-mail: customer.services@theso.co.uk
Website: www.stationeryoffice.com
or from:
The Stationery Office Bookshops
see Tariff, Volume 1, Part 1 Section 1.
 11

2. General information about authorisation

This section explains the different types of authorisation available and how to apply for them.

2.1 Why do I need an authorisation?

You need to be authorised to import or receive IPR goods to be eligible for duty relief. Authorisations are
issued to the person who processes the goods or arranges for them to be processed on their behalf. If you
subcontract processing the subcontractor must either hold their own authorisation or be named on your
authorisation.

2.2 What types of authorisation are there?

There are five types of authorisation:
· Simplified (UK only) – see section 4;
· Local (UK only) – see section 5;
· Specific – see section 6;
· Single Community – see section 7; and
· Integrated – see section 8.

2.3 How do I know which one to use?

Which type of authorisation you need will depend on:
· whether you intend to enter goods listed in section 26;
· value of the goods;
· the nature of the processing involved;
· the economic code you apply under (see section 30);
· whether you import or receive goods from another IPR trader;
· the number of entries you intend to make, for example if you make infrequent entries you may find it
easier to use a simplified authorisation (see section 4);
· if you want to apply to use any simplified procedures within IPR (see section 49) these require prior
approval;
· if you want to use equivalence (see section 13); or
· if you want to use CFSP for declaring goods to IPR.

2.4 What is an economic code?

These codes are used to identify the reasons for using IPR. When you apply for an authorisation you will
need to quote the economic code under which your application is being made, see section 30. This applies
even if the application is not required to undergo an economic test (see paragraph 3.10).

2.5 How long does authorisation take?

If you apply for an authorisation using form C&E 810 (see paragraphs 5.2 and 6.2) you should be informed of
the decision to grant or reject the application within 30 days of Customs receiving the application. However,
this period will not start until all the necessary information required is received. When an authorisation is
issued you will only be approved to receive goods under IPR that are specified in your authorisation.

2.6 How long does an authorisation last?

The length of time an IPR authorisation can be used will depend on the type of goods and processing
involved. Except for Simplified authorisations, where the period of authorisation is limited to the period
required to process and re-export the goods (see section 4), all other types of authorisation should not
normally exceed 3 years from the date the authorisation takes effect. However restricted periods of
authorisation do apply to certain agricultural goods:
· 6 months in the case of agricultural products listed in paragraph 26.1;
· 3 months for dairy products referred to in Article 1(1) of Council Regulation (EC) No 1255/99 (see
section 33).
12

Except for these goods longer periods may in certain circumstances be approved where there are duly
justified good reasons, for example a fixed term contract or commercial agreement. You should contact your
supervising office for specific details.

2.7 Responsibilities of the authorisation holder

As the authorisation holder you will be responsible for the duty and associated charges on all goods entered
under your authorisation, whether or not you own them. This includes goods entered under the authorisation
by any named processors until they are put to an eligible disposal (see section 15). Other companies
included as named processors may only receive, process, dispose or transfer IPR goods as specified in the
authorisation. You should make your own arrangements to indemnify yourself with any suppliers/customers/
associated companies included in your authorisation in the event of an ineligible entry or disposal.
You will be responsible for ensuring:
· entries on Form C88 (SAD) are correctly completed using the appropriate IPR CPC (see paragraph
10.1);
· that any processor named on your authorisation or third party such as agents or freight forwarders,
who enter IPR goods under the authorisation, are given clear written instructions of the goods to be
entered and procedures to be followed (see paragraph 10.2);
· the correct transfer procedures are used for IPR goods received or transferred (see sections 12 and
15);
· records are kept of all operations carried out under your approval (see paragraph 3.12);
· goods are pre-entered at export (unless simplified clearance procedures are approved) see paragraph
15.3, using the appropriate IPR export CPC (see paragraph 29.8 and 29.14) and for keeping evidence
of their disposal (see section 37);
· the payment of duty, import VAT (and compensatory interest) for suspension goods diverted to free
circulation, (see paragraph 15.27 and section 17);
· returns of receipts and disposals of IPR suspension goods and requests for repayment of IPR
drawback goods are made by their due date (see section 16);
· amendments or alterations to your authorisation are notified in writing to your supervising Customs
office (see paragraph 2.10);
· for applying to renew your authorisation (see paragraph 2.11);
· security by cash deposit or bank guarantee is made where required (see paragraph 2.8).

2.8 Do I need to provide security?

Security will not usually be required (except for transfers of certain goods considered to bear increased risks,
see paragraph 12.2) however it may be requested if you do not fulfil your obligations under your authorisation
eg fail to submit suspension returns, fail to pre enter goods at export etc. If required your supervising office
will contact you with the details.

2.9 Refusal of an application for authorisation

Except where a single Community authorisation is applied for, we are required to issue a decision on your
application within 30 days of receipt of all necessary information. If your application is refused you will not be
eligible to claim the relief.
You have the right to appeal against the decision, section 50 of this notice explains the appeal procedure.

2.10 Can I alter or amendment my authorisation?

Yes - if any details of your business (ie name, address or ownership) change, you must advise your
supervising office. If it involves a change of name or ownership you may have to re-apply for authorisation in
the new name. As the authorisation holder you must ensure that all details relating to the authorisation remain
current and correct.
If you need to make any changes to the terms and conditions of your authorisation, contact your supervising
Customs office. If you have a Single Community authorisation Customs authorities in other Member States
may need to be consulted. If appropriate, a new authorisation will be issued.
 13

2.11 How do I renew my authorisation?

You should apply in writing to your supervising office no later than one month before your authorisation
expires. You must advise us if any of the relevant facts (on your original application), have changed.
The authorisation holder is responsible for applying for a renewal if it is still required. Supervising offices do
not issue reminders.

2.12 How do I cancel my authorisation?

You can cancel your authorisation at any time by writing to your supervising office. In your letter you must
give the date by which all of your IPR goods will have been correctly disposed of.
Customs may also annul or revoke an authorisation if they find that it has been issued on the basis of
incorrect or incomplete information or when conditions of IPR have not been met. If this happens you will be
notified in writing.

2.13 Customs checks

You may receive a visit from your supervising office to ensure that your records and systems are adequate
for Customs purposes and to clarify details of the goods that you enter and process. During your period of
authorisation further visits may be made to inspect your records and to ensure that you are complying with all
conditions of the authorisation.
If you have a Single Community authorisation issued in the UK, a UK Customs office will be your supervising
office. Visits to check operations or records in another Member State may be made by Customs in those
Member States. These arrangements will generally have been agreed with the UK supervising office when
the authorisation was considered.
If a Single Community authorisation is issued in another Member State, Customs in that Member State will be
responsible for monitoring your operation. They may request information from UK Customs or require UK
Customs to carry out checks on your operations in the UK.
14

3. Application – conditions and requirements

This section gives guidance on the various aspects of IPR that need to be considered when completing an
application.

3.1 Period required to enter process and dispose of IPR goods

This is known as the "through-put period".
The period starts either from the date you import to IPR or the date goods were transferred to you. You need
to specify on your application the period you require to meet your business needs. As a general rule the
period should not normally exceed one year but in certain industries longer periods may be required eg for
aircraft and the Continental Shelf, where there are sound business reasons these will be approved. For
Simplified authorisations (see section 4) a standard 6 months will apply unless you indicate a
different period on the form C101.
If, after authorisation, you find you need a longer period you should contact your supervising office and apply
in writing for an extension. The period may also be extended after the original period has expired provided
your records are sufficient to show that the goods are still under IPR supervision.
If you are approved to use CFSP, the through-put period will commence either on the day of acceptance of
the simplified declaration or, where local clearance procedures are approved, the date when the goods leave
temporary storage.

3.2 Inventory system

This system provides for the throughput period to be automatically extended for all goods (except agricultural
goods listed in paragraph 3.3) that remain in stock at the end of your agreed throughput period. This can be
agreed provided your records are sufficient to show that the goods are still under IPR supervision.

3.3 Restricted through-put periods

For certain agricultural goods the period is restricted as follows:
· 4 months for certain dairy products referred to in Article 1(1) of Council Regulation 1255/99 (see
section 33);
· 2 months in the case of slaughter without fattening of animals referred to in Tariff Chapter 1;
· 3 months in the case of fattening (including slaughter where relevant) of animals which fall under CN
codes 0104 and 0105;
· 6 months in the case of fattening (including slaughter where relevant) of other animals referred to in
the Tariff Chapter 1;
· 6 months in the case of processing of meat;
· 6 months in the case of other agricultural products of a kind eligible for advance payment of export
refunds referred to in Article 1 of Council Regulation (EEC) No 565/80 and processed into products or
goods referred to in Article 2(b) or (c) of the same Regulation (see section 34).
Where successive processing is involved or there are duly substantiated exceptional circumstances, the
above periods may be extended on written request but the total period from entry to disposal must not exceed
12 months.

3.4 Compensating products

Compensating products are all the products resulting from processing operations under IPR including by-
products. When you apply for an authorisation you must state all the products you obtain from the goods you
import/receive under IPR and indicate which of those products are your main compensating products (MCPs)
and any secondary compensating products (SCPs). You will also need to state how the IPR goods will be
identified in the processed product.
All products which are a necessary by-product of producing your MCP(s) are secondary compensating
products (SCPs), they are not to be treated as waste or scrap. They are not the same as production losses
which must be taken into account when establishing the rate of yield for the processing operation being
carried out, see paragraph 3.6.
If you use production accessories, catalysts or agents etc, see section 23.
For IPR purposes the term "waste and scrap" only applies to goods destroyed under Customs supervision,
see paragraph 15.30.
 15

3.5 Reduced rates of duty on secondary compensating products (own rates)

If, as a result of your processing operation, you have SCPs and put them on the Community market, you will
generally pay duty at the rate appropriate to the goods originally imported. You may however be able to pay a
reduced or nil rate of duty ie the rate applicable had the SCP itself been imported. This rate is referred to as
the "own rate" but can only be considered in proportion to the quantity of MCPs exported from the
Community.
Your authorisation will state whether any SCPs you produce may be eligible to an own rate. The list of SCPs
to which own rates of duty could be applied are set out in Annex 75 of Commission Regulation (EEC) No
2454/93.
To find the duty rate you can look in the Tariff under the CN code for the SCP. Contact the National Advice
Service for further details or look on the Commission internet site (see paragraph 1.10).

3.6 Rate of yield

Rate of yield is the quantity of processed products (compensating products) made from a unit quantity of
goods entered to IPR. This can include production accessories or catalysts not found in the compensating
product, see section 23.
The expected rate of yield or the method by which it will be calculated must be specified in your application.
How the rate will be established will be confirmed in your authorisation. If your application includes more than
one processing operation, you must give the rate of yield for each processing operation at each location
taking account of:
· the quantity of main compensating products (MCPs) produced ie products for which use of IPR is
applied for;
· the quantity of any other products that are a necessary by-product of producing your MCP(s) ie
secondary compensating products (see section 44);
· goods lost or used up during processing (production losses) such as loss through evaporation,
desiccation, venting as gas or leeching; and
· (if applicable) the quantity of production accessory used to aid the production of IPR goods or
accessory used to process a unit quantity of free circulation goods for export.
If you dispose of the same goods as you receive, the rate of yield is 1:1. This is likely for goods for repair or
for minor activities under usual forms of handling (see section 32).
If you receive many different IPR goods to make a single product, then the rate of yield is expressed as so
many of each IPR item to one product you export or dispose of for example 3 metres of cloth, 4 metres of
cotton and 6 buttons to each shirt.
If you receive one IPR item and split it up into many different products, the rate of yield is expressed as the
quantity of IPR item that produces so much of each product (main compensating products) and what is left as
a result of producing those products (secondary compensating products) eg. 1000 kg of timber produces 14
tables, 12 chairs and 2 bookcases (MCPs) and 50 kg of wood/waste/cuttings/sawdust (SCP).
In cases where the rate of yield is not known at the time of application or the rate may vary, you should record
on your application that you intend to use your production records as the basis for establishing the rate. If you
have entered the rate of yield on the application/authorisation form and the rate of yield changes or is
incorrect, you must inform your supervising office immediately.

3.7 Rate of yield (processing/trimming of beef fillets)

If you import or receive beef fillets for processing, the rate of yield must accurately reflect the amounts used
to produce your main compensating product(s) and the amount of secondary compensating products which
includes what you might consider to be waste. The SCP can qualify for a nil rate of duty provided it is unfit for
human consumption.
If you intend to apply for an authorisation to process beef fillets you should contact our National Advice
Service.

3.8 Standard rates of yield for agricultural goods

For certain processing operations on agricultural goods, Community law sets standard rates of yield that must
be used, these are based on information obtained from all Member States and lay down the quantities of
compensating products deemed to be obtained from a given quantity of imported goods. They apply only to
goods of sound, genuine and merchantable quality. Using a standard rate of yield:
· puts you on the same footing as other processors in the Community;
16

· gives you firm figures on which to account for your products, regardless of minor fluctuations in actual
yields;
· simplifies your IPR planning and administration; and
· allows you, when you exceed the standard rate of yield for the main product, to dispose of the excess
on the Community market without paying import charges.
Details of how to use a standard rate of yield is given in paragraph 11.3.

3.9 How to check if a standard rate of yield applies

The list of standard rates of yield are published in the Official Journal of the Community (OJ) and are set out
in Annex 69 of Commission Regulation (EEC) No 2454/93. The Annex identifies in column 5 the rates of yield
to be applied to a fixed quantity of goods identified in column 1.
Where processing under IPR is identical with those carried out to obtain "export refunds", column 5 of the
Annex will be noted with an asterisk. In these cases the standard rate of yield is calculated by converting the
corresponding export refund co-efficient contained in Commission Regulation 1520/2000 Annex E. To obtain
the standard rate of yield the following conversion is applied:
1 x 100
Export refund co-efficient

If a standard rate of yield applies to the goods you process, the rates of yield will be stated in your
authorisation. If you cannot produce the quantity of products specified for your particular process or intend to
produce from any of the import goods, products not identified in the standard rate of yield, write to your
supervising office giving details of the import goods, the processes, your rates of yield and any other relevant
information.

3.10 The economic test

Where the application requires an economic test (see paragraph 6.1) you will need to provide evidence with
your application why you cannot use Community produced goods. Enter the appropriate economic code and
attach any supporting evidence in respect of each code you have quoted. Your application cannot be
examined without such evidence and may be returned to you if the information is not provided. section 30
details the type of evidence required to support your application. Contact our National Advice Service for
details of where to send your completed application.

3.11 Who carries out the test?

This will be carried out by DEFRA. They may contact you direct for additional information if necessary. We
will also consider your application to examine the other conditions attached to the authorisation. If we are
satisfied and DEFRA recommend that the economic conditions are met, you will be issued an authorisation
detailing any conditions relating to its use and an IPR authorisation number. The Customs office responsible
for your authorisation will be your supervising office.
Any authorised values and/or quantities are the maximum you can enter and apply to the period of approval
granted. They should not be treated as annual figures unless otherwise stated. If you need to change the
value or quantity limit you must apply before that limit is exceeded. This will be treated as a fresh application
and will be referred to DEFRA for a further examination of the economic conditions.

3.12 Records
You must keep records of all goods you enter to IPR. These must show:
· details of the quantities of goods entered to IPR, if your authorisation restricts the quantity or value of
goods on which you may claim IPR, it will be your responsibility to ensure that you do not exceed the
limits. You will therefore need to ensure that your records enable you to monitor the amount of goods
you enter to IPR;
· what goods are entered ie the commercial or technical description of the goods sufficient to identify
them (this should correspond to the description of goods that will be stated in your IPR authorisation);
· when and where goods were entered to IPR including transfers received and documents relating to
their entry;
 17

· where all goods and compensating products held under the authorisation are held at any time
including any movement of goods and compensating products to or between operators specified in the
authorisation (for single Community authorisations referred to in paragraph 7.2, Customs authorities in
other Member States where operators are located, will usually require the operators to have basic
stock records showing what goods or products the operator has received and how they have been
disposed of);
· what processing is carried out on the goods;
· locations where processing takes place;
· how goods entered to IPR are identified in the products produced, for example manufacturer’s marks,
serial numbers, plumbs, seals, clip marks, other marks fixed to the compensating product, samples,
illustrations, technical descriptions, analysis or other supporting documents that clearly show the
compensating product has been manufactured from your IPR goods;
· production data that establishes the rate of yield achieved ie how many products are produced
including any secondary compensating products (by-products) (see section 44); and
· when and where goods were exported or disposed of including documents relating to their disposal.

3.13 Using normal commercial records

You can normally use your commercial records but we may ask you to adapt them to provide the information
needed to claim relief.
If you intend to keep computerised records you must advise us when you apply for authorisation to ensure
that these records meet the requirements of IPR. You will be required to provide any technical information
and assistance we may need in order to check them.

3.14 How long records must be kept for

You must keep your records for four years after you dispose of the goods.
18

4. Simplified authorisation

4.1 When can I use a simplified authorisation?

This may suit you if you only make occasional imports to IPR and processing operations are solely carried out
within the UK. You can also use it to remove goods from a customs warehouse or Free Zone. Application is
made on Form C101 and presented with the import declaration, see paragraph 4.3.
Any goods that do not appear in section 26 may be entered to IPR using a simplified authorisation. Section
26 goods may also be entered provided the application concerns:
· operations of a non commercial nature, in other words goods which are your own personal property or
the property of members of your family;
· a job processing contract (any processing of imported goods that are directly or indirectly placed at
your disposal by a non EC customer and processed according to their specifications, generally against
processing costs alone);
· usual forms of handling (see section 32);
· repair (including overhaul and adjustment);
· processing of durum wheat falling within CN code 1001 10 00 to produce pasta falling within CN
codes 1902 11 00 and 1902 19;
· the value of the goods imported per applicant, per calendar year for each 8 digit CN code does not
exceed €150,000.

4.2 Are there any other restrictions on the use of simplified authorisation procedures?
If you wish to use IPR for any of the following reasons, you must apply for either a local (see section 5) of
specific authorisation (see section 6) using form C&E 810. You cannot use the C101 procedure because the
simplifications and procedures involved require prior approval by Customs.
· use economic code 99 (other reasons) - you will need to explain the reasons on your application.
Because of this you will need to apply for a local authorisation, unless a specific authorisation is
required, see section 6;
· import firearms, ammunition or nuclear materials;
· use equivalence, prior export equivalence or triangulation (section 13);
· use simplified procedures for transferring IPR goods within the UK or to other Member States (section
12);
· use the simplified procedures for the aircraft industry and building of satellites (section 18);
· use simplified procedures to process IPR suspension goods in a customs warehouse or free zone
(section 19);
· use simplified procedures for commissary stores (see paragraph 15.18);
· cut, slice or cook meat for airline meals;
· use a simplified import or export procedure such as CFSP/ NES ;
· import catalysts, agents or production accessories to assist in the manufacture or processing of
Community goods for export (section 23);
· process ozone depleting substances (see paragraph 10.9);
· use the Tax free shopping scheme (see section 21);
· import goods referred to in paragraph 26.1, where the RPA have issued a document permitting entry
to IPR within limits determined on the basis of a supply balance under Council Regulation (EC) No.
3448/93 Article 11 (see paragraph 24.3).
· Goods listed in Annex 44c of Commission Regulation (EEC) No 2454/93 where a guarantee is
required (see paragraph 12.2).

4.3 How do I apply?

Application prior to entry to IPR is not necessary as it is accepted that the goods and processes allowed
under this type of authorisation do not harm the essential interests of Community producers.
 19

Each time you enter goods to IPR you will need to complete form C101, 2 copies for IPR drawback or 3
copies for IPR suspension and an entry on form C88 (SAD), see paragraph 10.1. Attach the first copy to the
entry form C88 (SAD). In Box 37 of the SAD enter the relevant CPC, see paragraph 29.1. Copy 2 of the C101
should be retained in your records. If you use IPR suspension copy 3 serves as the suspension return and
should be submitted to NIRU at the end of the period allowed for disposal of the goods, see paragraphs 3.1
and 16.1. Guidance notes on completing the C101 are included on the form, see section 31.
Acceptance of the entry under the economic code you quote will be your authorisation, your authorisation
number will be the C88 entry number. A third party who has your written permission to enter on your behalf
may also complete and sign the C101, see paragraph 10.2.
After the goods have been entered, your entry and C101 will be sent to NIRU who are responsible for the
C101 system. All enquiries about goods you intend to enter or have already entered using a C101 should be
sent to:
National Import Reliefs Unit
Custom House
Killyhevlin Industrial Estate
Enniskillen
BT74 4EJ
Tel: 028 6632 2298
Fax: 028 6632 4018
Email: niru.ni@hmce.gov.uk
If you make a number of entries each year using C101s or use a C101 for some of your entries and a
different type of authorisation for others, you may be asked to direct all your enquiries to your local Customs
and Excise supervising office.
If you use the C101 system when you should not, you may not get relief even if you transfer the goods to
another IPR operator or export them.
20

5. Local authorisation (UK only)

5.1 When might I need a local authorisation?

This type of authorisation is ideal if you frequently import and process IPR goods, as you avoid having to
complete a C101 for each importation. It can also be used if you wish to apply to use CFSP or any of the
simplifications in paragraph 4.2 that are excluded under the C101 procedure. All goods and processes which
are eligible for a simplified authorisation are also entitled to use the local authorisation procedure.
In addition the following may also be authorised:
· successive processing - compensating products obtained under an authorisation that was subject to
an economic test carried out in the UK or another Member State, do not require an economic test.
However, evidence that an economic test has been carried out will be required;
· agricultural products referred to in paragraph 26.1, where the RPA have issued a document
permitting entry to IPR within limits determined on the basis of a supply balance under Council
Regulation (EC) No. 3448/93 Article 11 (see paragraph 24.3);
· economic code 99 (other reasons) - if you use this code, you will need to explain the reasons on
your application.

5.2 How do I apply for a local authorisation?

You will need to complete form C&E 810, guidance notes are included on the form, see section 36. If your
application covers more than one company in the UK give details of the goods to be entered and operations
to be carried out by each processor including the sequence and locations. Contact our National Advice
Service for details of where to send your completed application.
If agreed you will be issued an authorisation detailing any conditions relating to its use and an IPR
authorisation number. The Customs office responsible for your authorisation will be your supervising office.
You should apply at least one month before you first intend to import or receive IPR goods. If you wish to
enter goods to IPR before the result of your application is known, you can use the C101 system detailed in
section 4, provided you are eligible to do so and do not use any of the procedures which are excluded under
a simplified authorisation.
 21

6. Specific authorisation (UK only)

6.1 When might I need a specific authorisation?

This type of authorisation will be needed if you intend to import or receive goods listed in section 26 and the
value of the goods to be entered exceeds €150,000 per 8 digit CN code, per calendar year, unless the
application concerns:
· operations involving goods of a non-commercial ie goods which are your own personal property or the
property of members of your family;
· a job processing contract;
· successive processing of compensating products obtained under an authorisation which was subject
to an economic test (evidence that an economic test has been carried out will be required);
· usual forms of handling (see section 32);
· repair;
· processing of durum wheat falling under CN code 1001 10 00 to produce pasta falling under CN
codes 1902 11 00 and 1902 19.
an economic test will be required and you will need to provide evidence why you cannot use Community
produced goods, see paragraph 3.10.
If you are using IPR under the terms of a supply balance (see paragraph 24.3), the quantity limits allowed by
the supply balance certificate can be added to the €150,000 limit before an economic test is required.

6.2 How do I apply for a specific authorisation?

You should apply at least two months in advance.
You need to complete form C&E 810, see section 36. If your application covers more than one company in
the UK give details of the goods to be entered and operations to be carried out by each processor including
the sequence and locations. Please contact our National Advice Service for details of where to send your
completed application.
If exceptionally you wish to import or receive goods before the result of your application is known, contact the
Customs office where your application is to be sent.
If agreed you will be issued an authorisation detailing any conditions relating to its use and an IPR
authorisation number. The Customs office responsible for your authorisation will be your supervising office.
22

7. Single Community authorisation

7.1 When might I need a single community authorisation?

You might want to apply for this where receipts and processing under IPR is carried out in more than one
Member State. Processing can be carried out by one or more businesses and there is no requirement for you
and other processors to have a legal relationship or for successive processing of goods to take place.
Application is made on the model form (Annex 67 to business & trade/Importing, exporting and EC trade on
the C&E site) in Commission Regulation 2454/93. This is available on the website addresses given at
paragraph 1.10 or from our National Advice Service.

7.2 How do I apply for a single community authorisation?

An application should normally be made in the Member State where your main accounts are held and at least
part of your processing will be carried out. However, if this does not suit your business, perhaps because
accounts are held in a different Member State from the process, you can apply to the Customs authorities in
either Member state. As the application has to be considered by each Member State where processing takes
place, you should apply at least two months before the first intended entry. You will not be able to import or
receive IPR goods until the result of your application is known.
If you apply in the UK, you need to complete the model form indicated in paragraph 7.1 (explanatory notes
are included with the form, you can also refer to the guidance notes provided on form C&E 810 in section 36).
Contact our National Advice Service for details of where to send your completed application.
You must ensure you provide the following details:
· the names and addresses of all operators, both in the UK and in other Member States;
· the goods to be entered and what processing operations will take place in each Member State,
including the sequence and the locations;
· the address of the Customs Office for each location;
· the rate of yield for each processing operation and means of identification;
· where goods will be sent after processing for example export;
· any simplified procedures for entry, transfer or discharge you wish to use;
· records that will be available covering all operations in the UK and other Member States and how they
may be verified;
· how goods will be transferred between operators;
· if you are applying to use equivalence how you can demonstrate goods are equivalent, for example
samples, illustrations, technical specifications and so on; and
· confirmation that all operators named in your application are aware of their involvement.
We are not able to provide a list of Customs offices in other Member States, you may need to obtain this
information from your operator or agent in that Member State. Normally Member States will accept
applications in English but we may need to ask you for a translation of your application, or parts of it, in the
language of the other Member State(s) involved.
If you import or receive goods which fall within the scope of paragraph 6.1, the application will be referred to
DEFRA for an "economic test", see paragraph 3.10. DEFRA may contact you direct for additional information
if necessary. If the economic test is satisfied and we are content with the supervision arrangements, it will be
forwarded together with a draft authorisation to each of the Customs authorities where IPR operations take
place for agreement.
Member States are required to issue a decision on your application within 30 days of receipt of the draft
authorisation from UK Customs. If agreed you will be issued an authorisation detailing any conditions relating
to its use and an IPR authorisation number. The Customs office responsible for your authorisation will be your
supervising office.
 23

8. Integrated authorisation

8.1 When might I use an integrated authorisation?

You might want to use an integrated authorisation to cover imports and processing of various goods which
require authorisation for IPR and other customs procedures such as customs warehousing, OPR, PCC, TI
relief, End Use or Free Zone. How you transfer goods between customs procedures covered by the
authorisation will be agreed and stated in the authorisation (see paragraph 12.19). If you are approved to use
commercial documents (see paragraph 12.2) you will be able to transfer between the different procedures
within the integrated authorisation by notation in your records (except where payment of duty is due on
transfer). For transfers involving IPR and End Use see paragraph 15.29.

8.2 How do I apply for an integrated authorisation?

If your application predominantly covers IPR you should use form C&E810. Depending on the goods,
processes and locations involved, follow the guidance for a local or specific authorisation in sections 5 and 6.
You will need to show the goods to be entered and processed goods in Box 7 and 8 and indicate under which
procedure the entry and process will be made. You will also need to describe the processing operations
including any proposed transfer between procedures in Box 9 and 15. Any additional requirements of the
other procedures applied for should be entered in Box 16.
If the main customs procedure required is not IPR, for example customs warehousing, you should complete
the application using the appropriate form for that procedure with any additional requirements for IPR added.
Contact our National Advice Service for details of where to send your completed application.
If you wish to apply for an integrated Community authorisation, you will need to use the model format form
indicated in paragraph 7.1.
24

9. Retrospective IPR authorisation

9.1 Can I apply for a retrospective IPR authorisation?

You can but they may only be issued in certain circumstances. Examples may be, if you receive an
unexpected export order from a customer or if your domestic customer has gone bankrupt and you decide to
export the compensating products to another customer outside the EC.
All requests are considered on an individual basis. Application should be made on form C&E 810 stating the
reasons why it is required. You will also need to be able to produce records to support your application and
show that the goods in question were or are eligible for relief.
In order for your application to be considered, there are basic criteria that have to be met:
· exceptional circumstances must apply. Retrospection cannot be regarded as a regular or re-curring
form of authorisation;
· you will need to establish that there is an economic need for authorisation. Where necessary, an
economic test will be carried out;
· no obvious negligence or attempted deception should be associated with the application;
· all periods of validity and through-put periods must be/have been adhered to;
· the applicants accounts must be able to show that all the requirements of IPR can be deemed to be
met; and
· all the formalities of the arrangements must be regularised by amending any relevant declarations.
Within the context of retrospection, EC Commission guidelines define “obvious negligence” as being any
situation where a the applicant has failed to comply with the conditions for granting an authorisation although
they must have been aware of those requirements or had previously been in a similar situation and therefore
must have been aware of the need to obtain an authorisation prior to importation.
Any period of retrospection cannot be dated beyond one year from the date your completed application is
received.
 25

10. Importation and entry procedures

This section explains how to import/enter goods using IPR suspension and IPR drawback.

10.1 How do I enter goods to IPR?

You must complete an entry on Form C88 (SAD) with the following information:
Box Information required
31 the description of the goods (this should correspond with the description specified in your
authorisation)
33 the CN code for the goods entered in box 31
37 enter a CPC in the 51 series for suspension or the 41 series for drawback. The CPC you use will
depend on the type of authorisation you have (see section 29) and:
· whether you are importing from outside the EC;
· receiving goods from another IPR trader in another Member State;
· receiving goods from another customs procedure, such as customs warehousing, within the
UK or from another Member State.
44 for CHIEF input, enter:
· the Local Customs Office (LCO) scheme details ie your IPR authorisation number; and
· in the free text area, enter the name and address of your supervising office.
C101 users should enter “National Imports Reliefs Unit” (unless, as per paragraph 4.3, you have
been advised that responsibility for your IPR activities have been transferred to a local
supervising office). You must also state the economic code under which the goods will be
processed (see section 30) and enter the LCO scheme details “IP/9999/999/99”.
47 (drawback only) if you are claiming exemption from VAT under a VAT relief, enter "VAX" in the
rate column of the VAT tax line
54 State the type of representation (direct or indirect), see paragraph 10.2
If goods are entered to drawback or security is required for entry to suspension, a valuation statement will be
required if the value of the imported goods in a single consignment exceeds €10,000, see the Tariff Volume 1
Part 14 for further information. The Tariff, Volume 3, Part 3 tells you how to fill in the remainder of the form.
If you are entering goods to IPR under a simplified authorisation you will also need to complete Form C101
on entry (see paragraph 4.3).
If you have an integrated authorisation (see paragraph 8.2) and wish to enter goods to IPR you must give
your authorisation number with the prefix "IP". If your integrated authorisation includes customs warehousing
you will be given a separate authorisation number to be used for customs warehouse entries only.
If want to use CFSP to enter your IPR goods you must consult your supervising office before you import, to
ensure that use of CFSP is included on your IPR authorisation and that you have the appropriate CFSP
authorisation.
If you receive IPR goods from another IPR authorisation holder see section 12.

10.2 Authorising a third party to act on your behalf

You can use a third party such as an agent or freight forwarder to complete your entries on your behalf but
you must ensure that you give clear written instructions for the goods to be entered to IPR.
· Direct representation - the third party makes an entry in your name and on your behalf but you are
still responsible for any customs debt that may arise if an entry is incorrectly made.
· Indirect representation - the third parties make an entry in their own name and they are jointly and
severally liable with you for any customs debt that may arise if an entry is incorrectly made.
You must ensure that the third party sends you a copy of the entry to check that the details and IPR CPC
used are correct.
Note: Third parties who enter to IPR without written authority of the person in whose name entries are made,
will be liable for any customs debt incurred See notice 199.
26

10.3 Can I amend an entry?

Yes, if goods are entered in error to another customs procedure or to free circulation instead of IPR you may
be allowed to amend the entry provided:
· the application for amendment is received as soon as you become aware of the error and within 3
months of the date of entry;
· you were authorised at the time of entry (if you were not authorised at the time of entry you may be
able to apply for a retrospective authorisation, see section 9);
· use of the goods has not contravened the conditions of IPR and your records are sufficient to show
that the goods are or have been correctly disposed of under IPR; and
· the goods will immediately be entered to IPR.

10.4 How do I amend an entry?

You need to contact the EPU where the original entry was made and send a copy of the original
documentation together with any evidence, including a copy of your IPR authorisation to support your
request. If goods are entered in error to another customs procedure instead of IPR for example customs
warehousing, contact your supervising office

10.5 Goods subject to preference import licensing or other import restrictions

If preference is available at importation it cannot be claimed when goods are entered to IPR. Any preferential
rate of duty may however, be claimed if goods are diverted to free circulation provided preference is also
available at the time of diversion (see paragraph 15.27)
Licensable goods subject to quantitative restrictions, goods subject to tariff quotas or other quantitative import
restrictions etc cannot be entered to IPR drawback, they must be entered under IPR suspension. If you
import milk or milk products you should contact our National Advice Service as certain restrictions may apply.

10.6 What about goods that need a DTI import licence?

If you are importing goods, such as textiles, clothing or iron and steel which normally require an import
licence from the DTI, you can enter them to IPR suspension without presentation of a licence. However, you
will need to obtain a DTI licence if you divert licensable goods to free circulation, see paragraph 15.25.

10.7 Firearms, ammunition or nuclear materials

These can be entered to IPR suspension but you must first obtain a valid import licence from the DTI (these
goods cannot be entered using the C101 system).

10.8 Non-quantitative import restrictions (surveillance licenses)

Goods can be entered to either IPR suspension or drawback. If drawback is used, a valid licence must be
presented and endorsed when the goods are entered. If entered under IPR suspension the licence will not be
required unless the goods are diverted to free circulation (see paragraph 15.25) - or are transferred to
drawback.

10.9 Ozone depleting substances

If you intend to import ozone depleting substances you should contact our National Advice Service as some
cannot be entered to IPR and others will require an EC Commission licence before they can be imported.

10.10 Restrictions on animals and animal products

If you intend to import certain animals or products of animal origin, they may only be imported at approved
Border Inspection Posts for checks by health officials to be made. These and other goods subject to
prohibitions and restrictions are identified in the Tariff, Volume 1, Parts 2 and 3.

10.11 How do I import IPR goods by post?

You should ask the sender to clearly mark the package(s) and accompanying Customs declaration with the
following:
· "IPR suspension" or "IPR drawback" as appropriate;
· if you have an authorisation on a C&E 810 your "IPR authorisation no:_______________" or if you will
be using the C101 state "Simplified authorisation"; and
 27

· your VAT number if you are registered for VAT.

If the sender does not mark the package(s) as above IPR will not be applied.
If the duty does not exceed €10 the goods may be released to you without the need to complete an entry. If
duty is over €10 you will be sent Form C88 (SAD) which you should complete and return to the postal depot
as per paragraph 6.1. If an authorisation number is not quoted on the package a C101 (if applicable) will also
be sent for completion.
The goods will be sent to you when the C88(SAD) and where applicable Form C101 has been accepted.
If you have any queries you should contact Customs at the postal depot.

10.12 Information document Form C1055

This is an information document used by some member countries of the World Customs Organisation. It
assists in the identification of goods temporarily exported from one member country to another for process,
repair or other manufacturing operations. Participating countries include:
Algeria, Bulgaria, Canada, Hungary, Israel, Morocco, New Zealand, Switzerland, Poland, South Africa, United
States of America.
If you receive Form C1055 with goods you import you should ensure that Part 1 of the form (details of the
goods exported) has been certified by the Customs authorities in your customer’s country. You should then
complete Part II of the form and either present it with your import entry or later on, for Customs certification.
When you re-export the goods complete Part III of the form for Customs certification and return the form to
your customer.
28

11. Charges for secondary compensating products and using standard rates of yield
This section explains when reduced rates of duty can be applied to secondary compensating products and
using a standard rate of yield.

11.1 How to calculate charges on secondary compensating products

IPR allows relief in respect of the MCP resulting from processing. The treatment of SCPs or by-products
therefore depends on how you dispose of the main products and what you do with the by-products.
If you export a proportion of your MCPs, relief can be claimed on the same proportion of your SCPs provided
they are also exported. Duty liability on MCPs and SCPs is determined using the quantity or value methods
described in paragraph 15.28 and section 44.

11.2 How to calculate charges on secondary compensating products if an own rate applies
You can benefit from "own rates" whether you use IPR suspension or drawback. If an "own rate" applies relief
will be based on the difference between the duty rate of the imported goods and the duty rate of the SCP
calculated on the value of the SCP.
The quantity of SCPs on which you can claim an own rate depends on the quantity of main products that you
export from the EC eg if you export 90% of your MCPs you can use the own rate, if applicable, for up to 90%
of the SCP that you release for use on the community market (see section 44).
You will not be entitled to claim relief on SCPs in respect of any quantities of MCPs you release for use on
the Community market even if the SCPs are exported from the EC or destroyed under Customs supervision.

11.3 How do I use the standard rates of yield?

At the end of each IPR accounting period, calculate the quantity of each compensating product. Whatever the
quantity of products you actually produce, you must account for the quantities deemed to be produced from
the standard rates of yield eg if you process cocoa beans to produce cocoa paste and during the accounting
period you process 200 tonnes of cocoa beans, you would account for the compensating products as follows:
Compensating product Quantity of IPR goods Standard rate % Quantity of products
(t) produced (t)

Cocoa paste 200 x 76.3% = 152.6

Cocoa shells, husks, 200 x 16.7% = 33.4

skins and waste

You must enter these quantities on the suspension return you send to your supervising office. An example
duty calculation using standard rates of yield is given in paragraph 44.4.
 29

12. IPR transfers

This section explains how IPR goods can be transferred between IPR authorisation holders in the UK or in
another Member State.

12.1 How can IPR goods be transferred?

Goods entered under any type of IPR authorisation can be transferred provided the receiving authorisation
holder has approval to receive the goods in question. Goods can be transferred:
· between IPR authorisation holders in the UK using the declaration procedure (see paragraph 12.6);
· between IPR authorisation holders in the UK (where the receiver holds a LCP approval) using Form
C&E 811 (see paragraph 12.9); a simplified C&E 811 (see paragraph 12.11), or commercial
documents, (see paragraph 12.12);
· to an IPR authorisation holder in another Member State using the Community transit procedure, or for
suspension goods only, a 3 copy SAD, a 2 copy SAD or commercial documents (see paragraphs
12.14 and 12.15);
· under IPR drawback without a repayment of duty being made until the receiving authorisation holder
has re-exported or entered the goods to an eligible disposal, see paragraph 12.18; or
· within an integrated authorisation eg from IPR to customs warehousing by notation in commercial
records, see paragraph 12.19.

12.2 Do I need to provide a guarantee when I transfer goods?

Only certain goods that are considered to bear increased risks when transferred will, subject to minimum
quantities, require a guarantee. This includes the movement of such goods to/from the port, to/from premises
where processing takes place and between sites and operators approved within the same authorisation.
These goods are listed in section 35. In certain circumstances, the amount of guarantee can be reduced. If
you wish to apply for such a reduction, contact your supervising office for further details.
Where security has already been provided, for whatever reason, additional security for transfers will only be
taken if the transfer guarantee subject to minimum quantities is greater.

12.3 Do I need to be authorised to transfer goods?

The method of transfer you intend to use should be specified in your application/authorisation. With the
exception of the declaration procedure or C&E 811 for UK transfers or 3 copy SAD transfers to another
Member state, all other methods of transfer require prior approval.

12.4 How do I carry out transfers within the same authorisation?

You can transfer goods between locations or other processors included in your authorisation using
commercial documents. They must be endorsed with "IP/S goods or IP/D goods" as appropriate. The location
of the goods should also be entered in your records.

12.5 Local clearance procedure (LCP)

If you want to be able to receive IPR goods from another authorisation holder or from another customs
procedure that you are seperately authorised for, without having to make a declaration on a C88 (SAD), you
will need to hold a Local, Specific, Single Community or Integrated authorisation with approval to use Local
clearance procedures (LCP). Note: a formal entry using the declaration procedure must be used where
payment of duty is due on transfer.
LCP approval allows you to receive goods and for entry to IPR to be made by notation in your records, no
supplementary declaration is required. LCP approval within an IPR authorisation is granted only in respect of
receipt of IPR goods, it does not replace the requirement to apply for a specific LCP authorisation if it is
required for other non-IPR imports or exports.

12.6 Transfer using the declaration procedure (UK only)

This procedure must be used if the receiver does not have LCP approval. The consignee completes a C88
(SAD) using the appropriate customs procedure see section 29. Details for completing the entry are given in
the Tariff, Volume 3, Part 3 Appendix E2 under the appropriate CPC.
30

12.7 Transferring goods subject to quantitative restrictions, tariff quotas or other import restrictions
These types of goods fall under what is called ‘commercial policy measures’. If you transfer such goods Box
44 of the C88 (SAD), box 12 of the C&E 811 or the commercial document used, must be endorsed
"commercial policy" (see also paragraphs 10.5, 10.6, 10.7, 10.8, 10.9 and 10.10).

12.8 Goods diverted to the Community market

If you receive IPR suspension goods and divert them for use within the EC, compensatory interest will be
charged (see section 17). This will be calculated from the date the goods were first entered to suspension. If
the goods were first entered in another Member State interest will be calculated from the date of entry at the
rate of interest applicable in that Member State and import VAT by reference to the value at the time of entry.
If you receive Form INF1 (see paragraph 12.16) when you receive goods, you will need to pass this on to
your customer, see also paragraph 12.17.

12.9 Transfer using Form C&E 811

The C&E 811 is a four part copy form for UK transfers only, where the customer holds a Local, Specific,
Single Community or Integrated authorisation. The customer needs to complete Part A stating their IPR
authorisation number. The form should then be sent to the supplier to complete Part B. The supplier will keep
copy 1 of the form, send copy 2 to their supervising office and send copies 3 and 4 to the customer who
should issue a commercial receipt for the goods. The receipt should be kept with the suppliers records as
evidence that their duty liability has been discharged. Section 38 shows the movement of the form. You may
also be able to use a simplified C&E 811 (see paragraph 12.11).
(a) Transferring drawback goods to another IPR drawback trader
If drawback goods are transferred to a drawback trader the supplier cannot claim back the duty from
Customs. The supplier should invoice the customer the duty inclusive price. The customer will be
entitled to reclaim the duty from Customs if they dispose of the goods in one of the ways in paragraph
15.2. If the customer transfers the goods to another drawback trader they will also need to invoice
duty inclusive.
(b) Transferring drawback goods to an IPR Suspension trader
The supplier should invoice their customer the duty exclusive price. The supplier can submit a
repayment claim to Customs when they send the goods and copies 3 and 4 of C&E 811 to their
customer (see paragraph 16.3).
(c) Transferring suspension goods to another IPR suspension trader
The supplier should show the value for VAT at import in Part B box 15 of the form and invoice their
customer the duty exclusive price.
(d) Transferring Suspension goods to a IPR Drawback trader
The supplier should invoice the customer inclusive of duty and compensatory interest (see section
17). The supplier must show the interest payable and the value for VAT at import in Part B Box 15 of
the form. The supplier should send Copies 3 and 4 together with the duty, interest and VAT due to
their supervising office or EPU. Copy 3 will be returned to the supplier as proof of payment which
should then be sent on to customer. The customer needs to keep this to support their drawback claim
if they dispose of the goods in one of the ways in paragraph 15.2.

12.10 Simplified procedures for transfers within the UK

Simplified procedures can allow use of a commercial document or simplified C&E 811. The requirement to
notify your supervising office of each individual transfer by sending a copy of the C&E 811 or commercial
documentation to them can also be waived and alternative methods of notification agreed including a
standing notification. For example, if you regularly supply IPR goods to the same customer, you may be
allowed to complete form C&E 811 monthly or quarterly. For further information contact your supervising
office.
You will need to write to your supervising office giving details of the goods you expect to supply/receive and
the name and address of your customer / supplier. It is your responsibility to ensure that they are authorised
for IPR and are or will be approved to use the same simplified procedure.
The supervising office must be satisfied that your records are sufficient to support use of the simplification
before it can be approved. If approved, suppliers should invoice their customers as identified in paragraph
12.9 to 12.10.
 31

12.11 Simplified C&E 811 procedures

The requirements are the same as outlined in paragraph 12.9 but some of the information on the form can be
omitted. The customer will need to complete Section A boxes 1, 2, 3, 5 (unless the same information can be
included on a commercial document sent with the C&E 811), 6 and 8.
The supplier will need to complete Section B boxes 9 (unless the same information is provided on a
commercial document attached to the C&E 811), 10, 11, (if equivalence applies) 12,13 and 14.

12.12 Commercial documents

Except for transfers of suspension goods to a drawback authorisation holder (which should be made using
the C&E811 procedure as import duty and compensatory interest will need to be paid) commercial
documents can be used if approved. The commercial document used must include "IP/S goods" for
suspension or "IP/D goods" for drawback and contain the following information:
· the name, address and authorisation numbers of the supplier and customer;
· the invoice number and any other reference number needed to trace the goods through the supplier’s
and customer’s records;
· the description, quantity and commodity code(s) of the goods supplied;
· the entry number and date of the (C88), C&E 811 or commercial document used to enter the goods to
IPR;
· if equivalence applies, the country of origin of the goods; and
· value for Import VAT and the amount of duty suspended or paid.
Movement of documents will normally follow those outlined in section 38 however, where the requirement to
notify the supervising office of each individual transfer has been waived, a copy of the commercial
document/or C&E 811 should be retained by the supplier and the original sent with the goods retained by the
customer.
The customer will be responsible for the goods when they have received and entered the goods in their
records. A commercial receipt should be issued which should be retained in the supplier’s records as
evidence that the duty liability has been discharged.

12.13 Commercial confidentiality

To protect confidentiality, the amount of duty suspended and value for import VAT can be omitted from both
the simplified C&E 811 and commercial documents provided the customer has given written consent. The
supplier will however have to give an undertaking to provide the necessary information if goods supplied are
subsequently diverted to free circulation to enable calculation of the duty due.

12.14 Transfer of IPR suspension goods between Member States

Unless simplified procedures are approved, transfers of IPR suspension goods to or from other Member
States can be made using a 3 copy form C88 (SAD) or the Community Transit procedure.
(a) 3 copy SAD - Copies 1, 4 and an additional copy 1 are used. Section 39 shows the boxes that
must be completed (no CPC is required). The supplier keeps copy 1 with their records and sends
copy 4 with the goods to the customer and the additional copy 1 to their supervising office. Copy 4
is retained by the customer who should issue a commercial receipt for the goods. The receipt
should be kept with the suppliers records as evidence that the duty liability has been discharged.
(b) Community Transit - the transit form C88 (SAD) must show the status of the goods as T1. Box 37
(CPC) should not be completed. Box 44 should include the supplier’s IPR authorisation
number/Customs office address and be endorsed "IP/S goods" for suspension. For details on how
to complete the form see Notice 750 Community / Common Transit.

12.15 Simplified transfer procedures for IPR suspension goods between Member States
Simplified transfer procedures can allow the use of a 2 copy form C88 (SAD), (details required are listed in
section 39), or commercial document. The supervising offices must be satisfied that records are sufficient to
support use of the simplification before it can be approved.
If you want to send IPR suspension goods using a simplified procedure, you will need to write to your
supervising office giving details of the goods you expect to supply and the name and address of your
customer. Your customer in the other Member State will also need to apply to their Customs office. You will
need to supply written confirmation that they have been approved to receive the goods under the simplified
procedure.
32

The customer becomes responsible for the suspended duty and potential import VAT when the goods are
received and entered in their records. The customer is required to issue a commercial receipt for the goods
which the supplier should keep with their records as evidence that their duty liability has been discharged.
The following identifies in general what may be approved for IPR suspension transfers made from the UK.
These will be subject to what has been required by other Member States involved.
(a) 2 copy C88 (SAD) - copy 1 and 4 of the SAD is used. The supplier retains copy 1 and sends copy
4 with the goods to their customer who should issue a commercial receipt for the goods. The
receipt should be kept with the supplier’s records as evidence that duty liability has been
discharged. which the supplier should keep with their records.
(b) Commercial documents - if approved copies of the commercial document must be clearly
endorsed "IP/S goods" and contain the following information:
· the name, address and authorisation numbers of the supplier and customer;
· the invoice number and any other reference number which is needed to trace the goods through the
supplier’s and customer’s records;
· the description, quantity and commodity code(s) of the goods supplied;
· the entry number and date of the (C88), C&E 811 or commercial document used to enter the goods to
IPR;
· if equivalence applies, the country of origin of the goods; and
· value for Import VAT and the amount of duty suspended.
Unless otherwise approved the flow of the commercial documents should follow the flow of the 3 copy C88
(SAD) in paragraph 12.14. However, the requirement to notify your supervising office of each individual
transfer can also be waived and alternative methods of notification agreed including a standing notification.
To protect commercial confidentiality, the amount of duty/import VAT suspended can be omitted from
commercial documents. However, this can only be done with the customer’s written consent. The supplier will
however have to give an undertaking to provide the necessary information if goods supplied are subsequently
diverted to free circulation to enable calculation of the duty due.

12.16 What is Form INF 1?

Form INF 1 is an information document used to confirm the amount of duty and other charges that were
suspended on first entry to IPR, when goods are diverted to free circulation in a Member State other than
where they were first entered. If the goods you supply were first entered to IPR suspension in the UK, you
can send an INF1, stamped by your supervising office if required, with the C88 (SAD) or commercial
document showing the suspended duty, value for VAT at import and the date of entry to IPR. A specimen
form for information is available on our website, copies are available through our National Advice Service.
Notes for completion are included on the form.
If the goods you supply were first entered to IPR suspension in another Member State, then for any future
diversion to free circulation, compensatory interest (see section 17) will be calculated by reference to the date
of entry of the goods into that country and the VAT by reference to the value at that entry. If you received an
INF 1 at import attach a copy to the Form C88 (SAD) and send it to your customer with the goods.

12.17 Transferring IPR goods between Member States under a Single Community authorisation
You must ensure when completing your application for IPR, that you provide the name(s) and address(es) of
any processors who will handle your goods and the locations where the goods will be processed and
transferred.
Subject to agreement with the Member States involved, transfers can be made within the authorisation
between the locations and/or named operators without official documentation but it will be your responsibility
to maintain accurate records that show where the goods are at all times. The recipient must also keep
records to show where the goods are and what process they undergo.

12.18 Transferring IPR drawback goods to or from another Member State

Transfers of IPR drawback goods to or from other Member States can be made using the Community Transit
procedure. The transit Form C88 (SAD) must show the status of the goods as T1 and box 44 should include
the supplier’s IPR authorisation number/supervising office address and be endorsed "IP/D goods". This
method of transfer must be used if the goods are moving between drawback authorisation holders. For details
on how to complete the form see Notice 750 Community / Common Transit.
 33

Simplified transfer procedures can allow the use of commercial document accompanied by an INF 7. The
INF 7 is an information document used to verify that drawback goods, that are transferred without a
repayment of duty, have been re-exported or put to an eligible disposal that entitles repayment of duty to be
made. The form is raised and presented by the receiving authorisation holder when they export the goods or
put them to an eligible disposal. The supplier and receiver should notify their supervising offices if they intend
to use this procedure.
Approval to use the simplified procedure will be subject to the agreement of other Member States involved. If
approved, commercial documents must be endorsed with "IP/D goods" together with the supplier’s
authorisation number (see also paragraph 12.12 - commercial documents). Section 40 explains how to
complete the INF 7. A specimen form for information is available on our website at www.hmce.gov.uk, copies
are available through our National Advice Service.
The right to repayment of drawback may be transferred with the goods but will always be subject to Customs
approval in the UK or other Member State concerned. If you want to transfer the right to repayment you must
contact your supervising office.
Note: repayment of duty on drawback goods can only be made when the goods are re-exported or are placed
with a view to export under customs warehousing, Community Transit, IPR suspension, TI relief, or Free
Zone. If you transfer drawback goods to another drawback authorisation holder in another Member State and
do not use the Community transit "T1" procedure, the INF 7 can only be raised if the receiving trader enters
the goods to one of the customs procedures mentioned above.

12.19 Transferring goods within an integrated authorisation

If you have an integrated authorisation eg IPR and customs warehousing, transfer of goods between the
procedures can be made by entry in your records. Records must be sufficient to trace the goods from their
first entry through processing, transfer and final disposal ie:
· details of the goods transferred;
· identify the procedure under which the goods were held and the procedure they are being transferred
to; and
· the date of transfer.
A formal entry on form C88 (SAD) will only be required where payment of duty is due on the transfer. For
drawback goods, if as a result of the transfer a repayment claim will be made, the commercial document or
record identifying the transfer should be used to support the claim.
For transfers involving IPR and End Use see paragraph 15.29.
34

13. Equivalence
This Section tells you about equivalence, including prior export equivalence and triangulation and how they
are used.

13.1 What is equivalence?

This is a procedure that can allow you to use identical free circulation goods in place of IPR goods for
processing and export. It must not be used to offset exports of free circulation goods in order to reduce import
duty bills on non EC imports for use on the Community market.
Some agricultural goods have special equivalence rules. See the following paragraphs:
· rice (paragraph 14.1);
· wheat (paragraph 14.2);
· sugar (paragraph 14.3);
· live animals and meat products (paragraph 14.4);
· milk and milk products (paragraph 14.5);
· maize and olive oil (paragraph 14.6); and
· genetically modified foods (paragraph 14.7).
IPR and free circulation goods held in a common stock can make the use of IPR more flexible:
· removing the need for you to distinguish between IPR and free circulation goods;
· when you may not have IPR goods on hand but do have identical free circulation goods available;
· by enabling you to draw from a common stock of identical IPR and free circulation goods; and
· by simplifying your record keeping requirements as you need only keep a balanced account of
exported goods against IPR imports (provided you do not differentiate between the goods for any
reason).
Variations of equivalence are available which permit you to use equivalent goods before you import or export
goods under IPR. These are called prior export equivalence and triangulation but can only be used by
suspension traders who import/export goods, see paragraphs 13.7 and 13.13.

13.2 What conditions apply to equivalence?

If you consider use of equivalence the following points must be taken into account:
· if you do not export any of your imports it must not be because your non EC or EC customer
differentiate between the goods, for any reason;
· you will need to provide evidence that clearly demonstrates that the free circulation goods are exactly
the same. Only in certain situations may goods differ, any difference must not itself be a characteristic
or factor that changes its use or affects its acceptability to your customer eg colour (where colour is a
factor eg clothing, any difference would not be acceptable); and
· if you apply to use triangulation (see paragraphs 13.10 and 13.16) you must be able to prove that you
are the sole beneficiary of using the system and that there is a commercial link between you and the
subsequent importer of the goods.

13.3 How do I know when goods are equivalent?

To be equivalent goods must be exactly the same as the goods you are authorised to import to IPR. They
must be of the same commercial quality, technical characteristics and Tariff sub-heading (ie they share the
same first 8 digits of the commodity code). The goods which you substitute for the imported IPR goods can
be:
· imported goods from the same source which you have entered to free circulation;
· goods imported from other sources which you have entered to free circulation; or
· goods obtained from Community sources which are already in free circulation.
Note: Authorisations may restrict use of equivalence to a certain source only, see paragraph 13.5.
To help you decide whether product A is equivalent to product B, consider the questions:
 35

· Are A and B mutually interchangeable?

· Would an EC and non EC customer ordering A (or a compensating product containing A) accept B (or
a compensating product containing B) instead and vice versa?
· Do you differentiate between A and B for any reason?
If your answer to the first two questions is "yes" and to the third "no", then assuming that A and B share the
same first 8 digits of the commodity code, they will usually be equivalent for IPR purposes.
When you apply to use equivalence the information you provide must be sufficient for a comparison to be
made between the goods. You must state factors common to the equivalent goods and the goods you enter
to IPR and suggest how this can be checked eg technical specifications, samples.

13.4 Using goods at a more advanced stage of processing than the imported goods
This can be allowed provided you carry out the essential part of the processing on the equivalent goods or it
is carried out on your behalf by an operator named in your authorisation. You will need to demonstrate:
· the more advanced stage goods were manufactured from goods which would qualify as equivalent as
the goods you are authorised to import;
· that you or an operator named on your authorisation carry out the same processing on the goods as
the processing you are approved to do under IPR;
· that compensating products you obtain from the goods at a more advanced stage are the same as
those you are authorised to produce under your authorisation; and
· the process takes place at your premises or at an operators premises named on your authorisation.

13.5 Authorisation to use equivalence

If you want to use equivalence, prior export equivalence, prior import equivalence or triangulation you must
have prior authorisation to do so. Equivalence cannot therefore be used in conjunction with a simplified
authorisation.
If you apply for IPR because the goods you need are not available in the Community, you cannot claim
equivalence on Community produced goods. Similarly, if you apply for IPR because the import goods are
specified by your customer, you can only claim equivalence on goods from the same source.
When you apply, complete Box 18 on the application Form C&E810, see section 36. In all cases, equivalence
is subject to Customs approval that the goods remain equivalent. When prior export or import equivalence is
to be used the authorisation will also specify the period within which the replacement goods must be entered
to IPR.

13.6 How equivalence can be used

Common stocking - you do not have to keep imported IPR goods separate from the equivalent goods they
can be stored together, it does not matter if you cannot differentiate between them. Goods sent for export will
still be counted against the stock record balance of IPR goods.
Replacement parts - if you import goods for repair etc you can export a replacement part which you have
repaired previously.
Goods not held in common stock - you can claim equivalence in other circumstances where the goods are
not in a common stock. If you differentiate between the goods for any commercial reasons, your supervising
office will want to know why, in order to decide if they will qualify as equivalent to the IPR goods.

13.7 What is Prior export equivalence (EX/IM)?

This is a procedure that allows the export of products made from equivalent goods to take place before you
import the IPR goods ie export before import.
Prior export can be of use to you in a number of ways:
Urgent export - if you receive an order but do not have any IPR goods in stock, you can (provided you are
approved) export immediately, using equivalent goods drawn from your duty-paid stock. You can then import
replacement goods to IPR and use them as you wish without paying duty.
Occasional exports - if you only occasionally have export sales, or export sales are a small proportion of
your total sales, it may not be practicable to apportion imports in advance to IPR and free circulation. You can
import goods to free circulation initially, wait until you have exported products and then import goods to IPR to
replace the goods exported from your duty-paid stock.
36

Apportioning of imports - if you are entering goods to IPR on the basis of a reasonable estimate of your
export needs and you find you have underestimated your IPR needs, you simply supply export markets with
products made from free circulation materials. When you next import, you can enter a higher proportion to
IPR, as you already have a "credit" of prior exports.
You cannot use prior export equivalence for goods held under IPR drawback.
A variation of prior export equivalence which provides for import to be made before duty paid goods are
exported, is prior import equivalence, (see paragraph 13.13).

13.8 How do I export equivalent goods?

Present form C88 (SAD) ensuring that “EX” is entered in Box 1 and CPC 31 51 00 is quoted in Box 37. In Box
44, enter your authorisation number and the address of your supervising office. Further information about
completing the SAD is given in Notice 275 Export Procedures and in the Tariff Volume 3, Part 2.

13.9 Time limits for importing the replacement goods (EX/IM)

For most goods you must import within 6 months of export. If this proves difficult you can apply to your
supervising office explaining the reasons for needing an extension. An extension can only be considered to a
maximum total period of 12 months.
For goods subject to a common market organisation (primarily agricultural goods in Chapters 1 to 24 of
the Tariff) you must import within 3 months of export. The period for these goods cannot be extended in any
circumstances.
When you import replacement goods to IPR present Form C88 (SAD), quote CPC 51 00 00 in box 37 and
complete as a normal IPR import entry (section 10). If you use triangulation see paragraphs 13.12 and 13.16.

13.10 What is Triangulation? (EX/IM - Form INF 5)

This is a variation of the prior export equivalence procedure described in paragraph 13.7. Export of the free
circulation goods is made by the authorisation holder or an operator named in the authorisation holders
approval. The importer does not need to be authorised for IPR but must be named on the authorisation,
under which the export and subsequent import is made. For UK authorisations this will be the person named
in box 18C of the C&E 810.
Triangulation with other Member States can apply where export and subsequent import take place in
different Member States eg export from the UK with subsequent import made into France. In these
circumstances details of the French importer would need to be included in box 18C of the C&E 810. If you
export goods using prior export equivalence but then wish to import goods under triangulation, you may be
allowed to have an INF 5 raised after the export was made, provided the prior export was made using the
correct export CPC (see paragraph 13.8) ie 31 51 02. You need to apply to your supervising Office for
approval to use triangulation. A specimen INF 5 form for information is available on our website, copies are
available through our National Advice Service.
Another variation of triangulation which provides for equivalent goods to be imported before IPR goods are
exported, can be made using the INF 9 procedure detailed in paragraph 13.16. You cannot use triangulation
for goods held under IPR drawback. Checks may be made to ensure that use of triangulation only benefits
the exporter of the equivalent goods ie the authorisation holder.

13.11 How do I export goods under triangulation (EX/IM)

When the equivalent goods are exported you must present a certificate of entitlement Form INF 5 with the
export declaration. CPC 31 51 02 must be quoted in box 37 of the C88 (SAD). You must pass the certified
INF 5 to the importer named in your authorisation (box 18 C of the C&E 810). The importer will need to
present the INF 5 at the time of entry to offset duty due on the replacement goods. Once the goods are
entered they can be released without payment of duty for use on the community market, see section 41.
If you use triangulation regularly, there are simplified procedures involving an aggregated Form INF 5. For
further information contact your supervising office.

13.12 How do I import goods to IPR under triangulation (EX/IM)?

You will need to present the certified INF 5 passed to you by the exporter and complete an entry on Form
C88 (SAD). Quote CPC 51 00 02 in box 37 and the exporters IPR authorisation number in Box 44. The import
of replacement goods must be made within the time limits in paragraph 13.9.
 37

Where the exporter and subsequent importer are in different Member States, the imported goods, although
coming form outside the Community, will be subject to any charges under CAP to which they would have
been subject, had they been consigned in free circulation from the Member State where the INF 5 was raised.
See section 41.

13.13 What is Prior import equivalence (IM/EX)?

This is a procedure that allows goods to be imported to IPR and for them to be released to free circulation
without payment of duty provided equivalent goods are later exported. This enables you to benefit from duty
relief at the time you export equivalent goods from your duty paid stock.
This can be allowed provided you carry out the essential part of the processing on equivalent goods or it is
carried out on your behalf by an operator named in your authorisation. You will need to demonstrate:
· the goods were manufactured from goods which would qualify as equivalent to the goods you are
authorised to import;
· that you or an operator named on your authorisation carry out the same processing on the equivalent
goods as the processing you are approved to do under IPR;
· that compensating products you obtain from the equivalent goods are the same as those you are
authorised to produce under your authorisation; and
· the process takes place at your premises or at an operators premises named on your authorisation.

13.14 How do I import goods using Prior import equivalence?

When you import the goods complete an entry on Form C88 (SAD). In box 37 enter CPC 51 00 02 and
complete as a normal IPR import entry.

13.15 How do I export goods using Prior import equivalence?

When you export equivalent free circulation goods complete Form C88 (SAD) In box 1 enter “EX” and in box
37 enter CPC 31 51 02.
You must export the equivalent goods within the agreed throughput period for the goods you are authorised
to import, see paragraph 3.1. Failure to export equivalent goods will cause a customs debt to be incurred on
the goods that were entered to IPR.

13.16 Triangulation Import/Export (IM/EX ) - Form INF 9

This is a variation of prior import equivalence where import and subsequent export take place in different
Member States. With this version of triangulation, Form INF 9 is raised by the authorisation holder when non
EC goods are imported, see section 42. Goods are entered to IPR but can released to free circulation. The
certified INF 9 should then be passed on to the exporter. The exporter does not need to be authorised for IPR
but must be named on the authorisation under which import has been made, as the person approved to
export goods. This will be the person named in Box 18 D of the C&E 810. A specimen INF 9 form for
information is available on our website, copies are available through our National Advice Service.
Importing goods when you import goods to IPR in the UK you will need to complete an INF 9 and present
Form C88 (SAD), in box 37 enter CPC 51 00 02 and complete as a normal IPR import entry (see section 10).
Exporting goods when equivalent free circulation goods are exported, Form INF 9 must be presented with the
export declaration, (see section 42).
You must export the equivalent goods within the agreed throughput period for the goods you are authorised
to import, see paragraph 3.1). Failure to export the equivalent goods results in a customs debt on the
imported goods from date they were entered to IPR.
You cannot use triangulation for goods exported under IPR drawback.

13.17 What is the Customs status of the goods imported and exported under equivalence?
Under prior export equivalence (EX/IM), although in free circulation, the equivalent goods assume the
customs status of IPR goods when the export declaration is accepted and IPR export procedures apply to
them. The replacement goods change status and become Community goods when the import declaration is
accepted and they are released to free circulation.
38

With prior import equivalence (IM/EX) the goods imported to IPR change status and become Community
goods when the import declaration is accepted and they are released to free circulation, however duty liability
on the goods remains until equivalent Community goods have been exported. Equivalent Community goods
assume the customs status of IPR goods, when the export declaration is accepted and IPR export
procedures apply to them.
The use of equivalence, prior export equivalence or prior import equivalence does not change the origin of
the exported goods, which retain their true origin.
 39

14. Special equivalence rules

This section explains the special rules that apply to certain agricultural goods

14.1 Rice
Equivalence can be authorised for most types of rice under Tariff heading 1006, which have the same first 8
digit commodity codes. However for rice with a length not exceeding 6.0mm and a length/width ratio equal to,
or more than 3, and for rice with a length equal to or less than 5.2mm and a length/width ratio equal to or
more than 2, equivalence will only be permitted on the basis of length/width ratio.
Different consignments of rice may have the same 8 digit CN code but can have considerable variations in
the make up of each consignment. To ensure no unfair financial gain is made, stock records and IPR
suspension returns, must show the split of product quality eg the amount of whole grain and broken grain
exported. Records and suspension returns for subsequent import must also show equivalent quantities and
qualities of whole grain and broken grain rice.
Use of equivalence is not permitted where processing consists of usual forms of handling (see section 32).

14.2 Wheat
Equivalence can only be allowed between non EC harvested wheat released to free circulation and non EC
wheat of the same 8 digit CN code, commercial quality and technical characteristics. Exceptions from this are
subject to approval from the European Commission. Contact our National Advice Service for details of where
to send your completed application. Equivalence may also be allowed for EC durum wheat and non EC origin
durum wheat provided it is for the production of pasta falling within CN codes 1902 11 00 or 1902 19.

14.3 Sugar
Equivalence can be allowed between raw cane sugar falling within CN code 1701 11 90 and raw beet sugar
falling within CN code 1701 12 90 to produce the compensating product white sugar falling within CN code
1701 99 10. The time limit for importing replacement goods is limited to the period of validity of the import
licence.

14.4 Live animals and meat products

The use of equivalence for live animals and meat is prohibited. The ban on equivalence for meat can be lifted
on an individual basis, providing you are able to prove that equivalence is economically necessary and that
procedures to monitor the operation are available. Contact our National Advice Service for details of where to
send your completed application together with supporting evidence and details of your proposed procedures
to verify the operation. All applications will need to be forwarded to the European Commission, via, DEFRA
for consideration. Equivalence will not be allowed in advance of a decision by the Commission.

14.5 Milk and milk products

The use of equivalence is only permitted on equivalent goods on condition that their content in milk dry
matter, milk fat matter and milk protein is not lower than the content of those matters in the imported goods.
The content in milk dry matter, milk fat and milk protein of the imported goods and the equivalent goods must
be entered on the entry declaration (IM/EX) or export declaration (EX/IM) and where used, on the INF 9 or
INF 5.

14.6 Other goods

Special rules also apply to equivalence for maize used for animal feed, maize used for the production of
starch, maize for the manufacture of meal products, Olive oil and Olive-pomace oil. If you require any further
details about these goods contact our National Advice Service.

14.7 Genetically modified foods

Generally such foods which are permitted onto the market will have been modified to provide greater
resistance to harm from pests or disease rather than change the technical characteristics of the goods. Whilst
accepting that technical characteristics may not have been altered significantly, consumer concerns over their
use are reason enough to refuse claims to equivalence.
For equivalence to be accepted, no differentiation should be made by the authorisation holder or their
customers between the modified and non modified foods. The product should be equally acceptable to the
non EC customer and to an EC customer of similar non modified foods.
40

15. Export and other eligible disposals

When you or operators named on your authorisation enter goods to IPR you become responsible for the duty
and associated charges on them. This section explains the various ways you can discharge your IPR liability.

15.1 Discharging IPR

When goods are entered to IPR drawback you pay duty and import VAT, when you enter goods to
suspension, as the authorisation holder, you accept responsibility for the unpaid duty and import VAT. This
applies whether or not you take ownership of the goods.
Accounting procedures if you have entered goods under several declarations and you are unable to
determine which compensating product has been produced from which imported goods, you can discharge
your duty liability on a first in first out basis.

15.2 Eligible disposals

You can reclaim the duty on drawback goods or discharge your IPR liability on suspension goods, if you
dispose of the goods in one of the following ways:
· export the goods from the Community (see paragraph 15.4). If you export goods to Countries with
Preference agreements or export pasta to the USA see paragraph 15.6;
· export the goods from the Community via another Member State (see paragraph 15.7);
· transfer the goods either to another customs procedure or to another operator authorised to use one
of those procedures eg a customs warehouse, Free zone, Processing under Customs Control (PCC),
Temporary Importation TI relief (see paragraph 15.9);
· transfer goods to another Member State to be entered to another customs procedure in that Member
State (see paragraph 15.11);
· transfer goods to another IPR authorisation holder in the UK or another Member State (see section
12)
· transfer the goods to a Customs approved use such as export shops, armed forces, NAAFI,
Embassies, ships stores or bunkers or use as commissary stores and use in tray type meals (see
paragraphs 15.12; 15.13; 15.14; 15.15; 15.16; 15.17; 15.18 and 15.19 respectively).
· disposing of aircraft or aircraft parts and using goods in satellite construction, (see section 18);
· use of aviation fuel for third country or intra EC flights (but not including flights within the UK), see
paragraph 15.20;
· export to the Continental Shelf (outside territorial waters), see section 20;
· sell goods to customers who take goods abroad in their baggage, see paragraph 37.10;
· divert goods to the Community market with payment of duty, import VAT and compensatory interest
(suspension goods), see paragraph 15.23;
· in exceptional circumstances, divert goods that are eligible for End Use relief with payment of duty,
import VAT and compensatory interest (suspension goods) at the End Use rate of duty (see
paragraph 15.29); or
· destroy goods under Customs supervision (suspension goods only) (see paragraph 15.30).
For suspension goods you will be required to complete a return of receipts and disposals to account for your
goods periodically. For drawback goods you will need to complete a return detailing the receipt and disposal
of goods on which you are seeking a repayment of duty (see section 16).

15.3 Pre-entry of goods for export

All IPR goods must be pre-entered before exportation (see also the Tariff, Volume 3, Part 2, paragraph 2.1.6).
If simplified clearance procedures (SDP/LCP) are authorised, this requirement will be met by the submission
of the pre-shipment advice (PSA) (see the Tariff, Volume 3 Part 2, paragraph 2.1.12 and section 50 of this
Notice).

15.4 Exporting goods outside the Community

With the introduction of the New Export Scheme (NES), you have the option of using local clearance
procedures (LCP), using simplified declaration procedures (SDP) at either a designated export place (DEP)
or at the UK frontier or using the full declaration procedures.
 41

Under the full declaration procedures, you will need to complete copies 1, 2 and 3 of Form C88 (SAD) and
present it to Customs at the office of export before the goods are shipped.
Box Information required
1 Enter ‘EX’
31 the description of the compensating product in sufficient detail to clearly identify the goods, this
should correspond to the description specified in your authorisation
33 the CN code for the compensating product in box 31
37 enter an IPR export CPC in the 31 51 series for suspension goods or in the 31 41 series for
drawback goods (see section 29)
44 enter your authorisation number and address of your supervising office. If you imported using
Form C101 enter "National Import Reliefs Unit and the original import entry number. Endorse
"IP/S goods" for suspension or "IP/D goods" for drawback.
54 State the type of representation (direct or indirect), see paragraph 10.2).

Volume 3 Part 2 of the Tariff tells you how to complete the remainder of the form.
Keep the airwaybill or bill of lading with your records as evidence of export. If you cannot produce these
documents, you may be able to use others (see section 37).
If you are using Local Clearance Procedures (LCP) or using Simplified Declaration Procedures (SDP) at
either a Designated Export Place (DEP) or at the frontier, please see section 50.

15.5 Postal export procedures

You should clearly mark the package(s) with "IP/S" or "IP/D" goods as appropriate together with your IPR
authorisation Number and your VAT number if you are registered. You will need to complete form C88 (SAD)
as above and present it to Customs at the postal depot. You will also need to obtain a certificate of posting
(form C&E 132) which should be kept with your records as evidence of export. For further information on
postal procedures see Notice 143 A guide to International Postal Users and Notice 275 Export procedures.

15.6 Special rules for export to certain countries

Preference countries - where there are preference agreements between the EC and certain countries you
may not be able to claim IPR and preference (only some preference agreements allow a claim to both). If you
are unsure whether preference can be claimed contact our National Advice Service or see Notice 827
European Community Preferences: export procedures and 828 Export preferences: Rules of origin for
exports for further information.
USA - If you manufacture pasta under IPR and export to the USA you will need to complete a certificate
which is to monitor the operation of EC/USA pasta agreements:
· P1 (certificate of IPR exports of pasta to the USA); or
· P2 (certificate for the export with refund of pasta to the USA) where products manufactured fall within
commodity code 19 03.
Contact our National Advice Service if you require these forms.

15.7 Exporting goods from the Community via another Member State
The introduction of the New Export Scheme (NES) gives you a choice of methods when exporting goods from
the EC via another Member State. These are explained in Section 51.
If you wish to use the full declaration procedure, you must complete Form C88 (see paragraph 15.4) and
present it to Customs at the office of departure before the goods leave the UK.
When you export goods from the UK via another EC country, copy 3 of the SAD, endorsed by UK Customs,
must travel with the goods and be presented to Customs at the office of exit from the EC. Copy 3 provides
proof that the export formalities have been carried out in the EC. There are special concessions for goods
exported by sea, air, post and rail on a single transport contract for carriage to a non-EC country. Full details
of the export procedures are given in Notice 275 Export procedures.

15.8 Exporting goods from the Community using the Community Transit procedure
Where your IPR goods have been entered to the export procedure inland using LCP or SDP under NES, the
goods will have to move to the office of exit from the EC under the transit procedures (see also section 51).
42

The status of the goods must be shown in Box 1 of the C88 (SAD) as ‘T1’. No CPC is required in Box 37, box
44 must include the consignors IPR authorisation number, their supervising office address and be endorsed
‘IP/S or IP/D goods’.
You should ensure that you obtain a copy of your customer’s declaration as this will act as your evidence of
disposal of the goods and enable you to claim a repayment of your security.
For further details see Notice 750 Community/Common transit.

15.9 Transferring goods to another customs procedure within the UK

When IPR goods are transferred to another customs procedure IPR liability will not be discharge until the
goods have been received and entered to the new procedure. There should also be an intention to
subsequently re-export the goods.
(a) Drawback goods – where the receiver holds an authorisation for TI relief or Free zone with LCP
approval, transfer can be made using form C&E 811. If LCP approval is not included in their
authorisation or transfer will be made to a customs warehouse, form C88 (SAD) should be used
quoting CPC 71 41 00 for warehousing, 78 41 00 for Free Zones or a CPC in the 53 series for TI
relief in box 37 of the C88 (SAD) and indicate T1 status.
 43

(b) Suspension goods –

· where the receiver holds an authorisation for TI relief or Free zone with LCP approval, transfer
can be made using form C&E 811. If LCP approval is not included in their authorisation, form C88
(SAD) should be used quoting a CPC in the 53 series for TI relief or 78 51 00 for a Free zone in
box 37 of the C88 (SAD) and indicate T1 status.
· If goods transferred to a Free zone are subsequently diverted to the Community Market, the
period spent in the Free zone will be included for charging compensatory interest (see section 17)
· Where transfer will be made to a customs warehouse, or Export shops (authorised as a customs
warehouse) with LCP approval, transfer can be made using a 3 copy SAD. Copies 1, 4 and an
additional copy 1 are used. Section 39 shows the boxes that must be completed. The supplier
should keep copy 1 with their records, send copy 4 with the goods to their customer and the
additional copy 1 to their supervising office. The customer should retain copy 4 and issue the
supplier with a commercial receipt for the goods as evidence that duty liability has been
discharged. If the goods are subsequently diverted to the Community market the period spent in
warehousing will be included in the period for charging compensatory interest (see section 17).

Where the receiver does not have LCP approval included in their authorisation transfer should be
made using form C88 (SAD) quoting CPC 71 51 00

If you and the receiver are approved you can also use a 2 copy SAD or commercial documents.
· Processing under Customs Control (PCC) - in certain circumstances, you may be able to dispose
of IPR compensating products by transferring them to PCC (see Notice 237 Processing under
Customs control (PCC). You could save duty, for example, if your IPR secondary compensating
products (by-products) contain valuable parts or components that would be worth recovering.

If the recovery operation is carried out under PCC, you will pay import duty and VAT only on the
recovered parts or components actually put onto the Community market.

Where the receiver holds a PCC authorisation with LCP approval, transfer can be made using
form C&E 811. If LCP approval is not included in their authorisation, form C88 (SAD) should be
used quoting CPC 91 51 00 in Box 37 of the C88 (SAD) and indicate T1 status.
For transfers between procedures within an integrated authorisation see paragraph 12.9.

15.10 Transferring goods to another IPR authorisation holder

See section 12.

15.11 Transferring goods to another Member State for subsequent entry to another customs
procedure
Transfer can be made using the Community Transit procedure, complete Form C88 (SAD) as per paragraph
15.8. For drawback goods you also have the option of transferring without seeking repayment of duty until the
goods have been received and entered to IPR suspension, customs warehousing, Free Zone, TI relief or
export in the receiving Member State using the INF 7 procedure (see paragraph 12.18).
For suspension goods you can also use a 3 copy SAD see paragraph 12.14. If the goods are subject to
import licence restrictions Box 44 should also be endorsed "commercial policy". If you also use simplified
transfer procedures if you and your customer are approved, see 12.15.
You will not discharge your IPR liability or be able to claim a repayment of duty until the trader in the other
Member State has received and entered the goods into their records.

15.12 Transfers to Export Shops in the UK (except where the goods are intended for passengers
travelling to other Community countries)
If the Export Shop is authorised as a customs warehouse, see paragraph 15.9.
If the Export Shop is authorised for IPR with LCP approval, you will need to use form C&E 811 to transfer the
goods, see paragraphs 12.9 and 12.11. If the Export Shop is not approved as a customs warehouse or
approved for IPR you will not be able to claim relief.

15.13 Transferring goods to DODIM relief

If you want to transfer IPR goods to DODIM relief contact your supervising office.
44

15.14 Transferring goods to armed forces

This can apply to sales to armed forces of non-EC countries based in the EC, the armed forces of another
Member State stationed in the UK and to UK forces stationed in another Member State. It does not apply to
supplies to UK forces stationed in the UK or supplies to individual service personnel. You will need to get a
stamped receipt from the armed forces base and keep the receipt with your IPR records as evidence of
discharge.

15.15 Transfers to NAAFI

Goods may be transferred under the external transit procedure Notice 750 Community/Common Transit to
discharge IPR. The status of the goods should be shown as "T1", complete a C88 (SAD) as per paragraph
15.8, goods may then be entered to the applicable visiting forces relief in the receiving Member State.

15.16 Sales to Embassies, Consulates - (people entitled to diplomatic privilege including diplomats
from countries outside the EC based in the EC and supplies to EC embassies outside the EC)
For supplies made to non EC Embassies within the EC, a receipt on embassy headed paper should be
obtained and kept as evidence of discharge, for UK embassies outside the EC obtain a receipt from the
Foreign and Commonwealth office.

15.17 Use as stores or bunkers on ships travelling outside the UK eg food for passengers
See paragraph 37.11.

15.18 Use as commissary stores

Commissary stores include cutlery, napkins, impregnated tissues, slippers, headsets and give away packs
containing toilet articles. Goods for sale on board and foodstuffs are not included, with the exception of
condiments such as salt, pepper etc usually contained in small sachets. Discharge is made when the goods
are used as commissary stores on journeys with a destination outside the UK ie intra-EC flights or cross
channel ferries. There are simplified accounting procedures for commissary stores. Contact your supervising
office.

15.19 Use in tray type meals - (meals delivered direct for export from the UK on intra-EC flights or
cross channel ferries but not cross channel trains).
Your authorisation should state how the transfer should be made and what evidence of disposal will be
required. This will usually be commercial documents with a stamped receipt from the aircraft etc.

15.20 Aviation fuel used on third country and intra Community flights (but not UK flights)
Your authorisation should state how the transfer should be made and what evidence of disposal will be
required. This will usually be commercial documents with a stamped receipt from the aircraft noting the flight
number.

15.21 Transfer to an Aircraft spare parts depot (ASPD) (suspension goods only)
Your authorisation should state how the transfer should be made and what evidence of disposal will be
required. This will usually be commercial documents with a stamped receipt from the ASPD etc.

15.22 Temporary export outside the EC (IPR and OPR)

Although temporary export does not discharge IPR, if the temporary export is for processing and return, you
can use Outward Processing Relief (OPR) in conjunction with IPR. When you apply for IPR authorisation you
should ensure that any time under OPR is included in the throughput period you require.
Provided you are authorised for OPR before you export the goods for processing, you can re-enter them to
IPR and claim OPR when the goods are re-imported. You may want to do this so that if the products are not
re-exported you will be able to pay less duty, see Notice 235 Outward Processing Relief (OPR).
When IPR goods are exported under OPR the following CPCs are used:
· 21 41 15 - IPR drawback goods temporarily exported under OPR simplified procedure for repair;
· 21 41 17 - IPR drawback goods temporarily exported under OPR;
· 21 51 16 - IPR suspension goods temporarily exported under OPR simplified procedure for repair; and
· 21 51 18 - IPR drawback goods temporarily exported under OPR.
 45

If you decide not to re-import the goods you will need to apply to have the OPR entry invalidated and replace
it with an IPR export declaration under a CPC in the 31 51 or 31 41 series.
When the goods are re-imported to IPR additional duty will be due as a result of processing carried out under
OPR. At re-importation the additional duty will be suspended if returned to IPR suspension or must be paid if
returned to IPR drawback. Quote one of the following CPCs in Box 33 of the C88(SAD):
· 51 21 00 - for IPR suspension;
· 51 21 01 - for IPR suspension (goods that were exported for repair under OPR simplified procedures);
· 41 21 00 - for IPR drawback; or
· 41 21 01 - for IPR drawback (goods that were export for repair under OPR simplified procedures).
When the OPR goods are re-imported to IPR the IPR duty liability remains until the goods are discharged in
one of the ways listed in paragraph 15.2.

15.23 Diverting IPR suspension goods to the Community market

If you supply IPR suspension goods including any products you make from them for use on the community
market you must pay duty, import VAT based on the value of the goods inclusive of duty and compensatory
interest (see section 17). If only some of your compensating products are diverted to free circulation you will
pay a corresponding proportion of duties suspended.
You will need to present a diversion entry using CPC 40 51 00 on Form C88 (SAD) to your supervising Office
or EPU and pay the amounts due. This can be done at the time of diversion or if you have been approved to
release goods on a general basis (C&E 810 box 19 refers), at the time your suspension return is due. Goods
released to free circulation on a general basis with periodic submission of diversion entries, may incur
additional compensatory interest charges.
Section 43 shows how to complete Form C88 (SAD).

15.24 Diverting goods entered under a simplified authorisation (Form C101)

For goods entered using the C101 procedure complete and send the C88 together with your payment to:
HM Customs and Excise
Entry Processing Unit
Carne House
20 Corry Place
Belfast
BT3 9HY

15.25 Diverting goods subject to import licence restrictions

If you intend to divert IPR suspension goods or products which are subject to license restrictions (see
paragraph 10.6), you must first obtain a licence from the DTI Import Licensing Branch, Billingham, using form
ILB/W. Present the licence with the diversion entry. Licensing requirements apply to the description by
commodity code of the goods as first imported into the Community ie the "import goods" and not to their
classification following inward processing (compensating product). Box 31 of the C88 (SAD) must be
endorsed "Commercial policy" and "IP/S goods".

15.26 Diverting goods subject to tariff quotas or ceilings

You must check if quantitative restrictions apply in respect of identical goods at the time of diversion. If similar
treatment does exist you should contact your supervising office, (see also paragraph 15.27).

15.27 Duty due on IPR goods diverted to the Community market

The duty due will be determined on the basis of how much "import goods" are in the goods you are diverting
(see section 44). You may be able to pay less duty if the imported goods qualified for preferential tariff
treatment when they were imported provided the same treatment is available for identical goods at the time
you divert to free circulation. (see Notice 375 Tariff quotas and Notice 826 Tariff preferences-imports) For
further information contact your supervising office.
If you divert IPR goods received from another Member State, ask your supplier to send you Form INF1. This
shows the amount of duty due and the date the goods were entered to IPR. Use this to calculate the
compensatory interest.
46

You will have to pay VAT at the UK rate at the date of diversion based on the value of the goods, inclusive of
duty, when they were first entered to IPR in the EC. You may be able to reclaim this as input tax.
Compensatory interest charges are not included in the value for VAT purposes.
If you are diverting a single item or several items with the same duty rate which you received from another
Member State, you can calculate the VAT due as follows:
 47

Example:
Duty rate = 10%
Duty Suspended at first entry to IPR in the EC = £ 400 (as shown on Form INF 1)
Value for duty is £400 x 10 = £4000

Total = £4400

VAT is £4400 x 17.5% = £770

If you are diverting several items with different duty rates, ask your EC supplier to confirm the value for VAT
of the diverted goods at import to that country.
If you are diverting goods because you are transferring them to a taxable person in another Member State,
you may be able to get relief from the import VAT. See Notice 702 Imports and Notes on CPC 42 51 00 in the
Tariff.

15.28 Methods of calculating duty

There are three methods of calculating the duty due:
Quantity method (compensating products) - this is used where only one kind of product is produced under
IPR. The amount of duty is determined by the amount of import goods used to produce the amount of
compensating product diverted (see paragraph 44.1).
Quantity method (import goods) - this applies where more than one compensating product is produced and
all elements of the import goods are found in each compensating product (see paragraph 44.2).
Value method - this is used where neither of above apply eg where import goods are broken down during
processing. The quantity of import goods used to produce each compensating product is determined by the
ratio of the value of each product to the total value of all products produced (see paragraph 44.3).
The value of each product to be used for applying the value method should be:
· the recent ex-works price in the Community; or
· the recent selling price in the Community of identical or similar products and not be influenced by any
relationship between the buyer and seller.
If you want to use the quantity method (import goods) instead you must submit an example of both methods
to your supervising office, with an explanation why you need to use it. If either method gives similar results
your application will be considered.

15.29 Diverting IPR goods to End Use relief

If you have EC and non EC markets and import or receive goods for processing that are eligible for IPR and
End Use relief but at the time of entry you do not know the ultimate use of the goods you have the option of:
· entering the goods to IPR and pay or suspend the normal rate of duties. In this case the import duties
paid or suspended at the time of entry to IPR may be reimbursed or remitted when the goods are re-
exported; or
· apportioning entries between IPR and End Use based on past or estimated requirements.
Diversion of IPR goods to End Use relief may be approved provided it is not a normal method of disposal eg
where an export order has been cancelled. If the IPR goods being diverted are eligible for End Use relief,
duty on diversion can be calculated at the End Use rate provided, at the time of diversion, all conditions for
granting End Use are satisfied. However, you are not required to hold an end use authorisation at either the
time of entry to IPR or on diversion to end use.
Any duty due will be calculated at the End Use rate of duty on the value of the goods at import to IPR. For
IPR suspension goods compensatory interest will be charged at the End Use rate of duty from the date of first
entry to IPR suspension. For IPR drawback any repayment of duty will be based on the difference between
the duty paid on the imported goods and the duty due at the End Use duty rate.
For further information see Notice 770 End Use relief or contact your supervising office.
48

15.30 Destruction
(a) Suspension goods. If goods are found on or after entry, to be defective, contaminated, obsolete
or otherwise unusable or you have processed goods which you wish to destroy, you may do so
without payment of the duty provided you have the prior agreement of your supervising office. If
waste and scrap resulting from destruction has a commercial value, duty and import VAT will be
charged on the value and at the rate applicable to the waste and scrap.

If destruction of goods is prohibited on environmental grounds, you may be able to discharge your
liability by assigning the goods to another treatment or use that discharges IPR other than export.
In these circumstances you must prove that export is either impossible or uneconomic.
(b) Drawback goods no relief is available for goods destroyed.

15.31 Customs Debt

· A customs debt will be incurred:
· if a condition governing the placing of the goods under IPR was not fulfilled at the time the goods were
declared for IPR;
· through a failure to meet an obligation that is a requirement under IPR eg failure to submit a
suspension return, use of an incorrect CPC; or
· if IPR goods are not re-exported or placed under another customs procedure that discharges IPR (the
debt is incurred at the time the goods are diverted).
If you fail to meet an obligation required under your IPR authorisation you may be denied relief of duty.
Interest for late payment will be charged on any customs duty debt that is not paid in full within 5 days of the
due date. Interest will be calculated on a daily basis from the due date and is subject to a minimum charge of
£25.
The current rate of interest can be obtained from our National Advice Service or on the internet at
www.hmce.gov.co.uk. This should not be confused with compensatory interest which is due on IPR
suspension goods diverted to free circulation, see section 17.

15.32 Intrastat
If you use a simplified transfer procedure detailed in section 12, you must include the goods in your
Supplementary Declaration.
If you send or receive goods under the Community Transit T1 procedures, the Tariff and Statistical Office
receives, for Intrastat purposes, a copy of the transfer Form C88 (SAD). Do not include these in your
Supplementary Declaration.
If you divert IPR suspension goods to free circulation, the Tariff and Statistical Office receives a copy of the
diversion entry. Do not include these in your Supplementary Declaration. Any subsequent movement of the
goods between Member States should be included in your Supplementary Declaration, unless covered by a
specific exemption. For more information see Notice 60 Intrastat - General Guide.
 49

16. Suspension returns and Drawback repayment claims

This section explains what returns you must make to Customs to discharge IPR and how to reclaim duty paid
on drawback goods.

16.1 Suspension returns

You must complete a suspension return and send it to your supervising office to account for the goods you
receive and dispose of under IPR. If you entered goods using a C101 enter the details on copy 3 of the C101
that was completed when the goods were entered. This should be sent to the National Import Reliefs Unit
unless, as per paragraph 4.3, you have been advised that responsibility for your IPR activities has been
transferred to a local supervising office. All other authorisations should use form C&E 812.
You must show what IPR goods you imported or received from other authorisation holders and where you
sent them after processing. Your authorisation will tell you how often to send in the form (usually monthly or
quarterly). Whatever period applies, the form must reach your supervising office within thirty days of the date
the goods were disposed of or within 30 days of the end of your agreed throughput period. Nil returns are
required.
Duty, import VAT and compensatory interest is due if you fail to submit returns. It is your responsibility to
ensure that returns are submitted in time, you will not be sent reminders (see also paragraph 15.31).
Where you have failed to submit a return within the required time scale you may apply to your supervising
office for an extension. However, approval is not automatic and you will need to show that there are special
circumstances which warrant such an extension before it is granted.

16.2 Simplified suspension returns

Except for Simplified authorisations you can apply to use a simplified return which omits certain details from
form C&E 812 provided they can be readily identified in your records. Your supervising office must be
satisfied that your records are sufficient to support use of the simplification and may need to check your
systems and records before it can be approved.
If you are approved but fail or are unable to provide the information required, the facility will be withdrawn and
you will be required to complete form C&E 812 in full.

16.3 Claiming repayment of duty on IPR drawback goods

After you have dealt with the goods in one of the ways detailed in section 15, fill in a claim on Form C&E 813.
Your authorisation will tell you how often to send in the form (usually monthly or quarterly). Whatever period
applies, the form must reach your supervising office within 6 months of export or eligible disposal of the
goods.
If you entered the goods using the C101 procedure use Form C&E 823. This should be sent to the National
Import Reliefs Unit unless, as per paragraph 4.3 you have been advised that responsibility for your IPR
activities has been transferred to a local supervising office.
It is your responsibility to submit your repayment claims in time. No reminders will be sent. Where you have
failed to submit a claim within the required timescale you may apply to your supervising office for an
extension. However, approval is not automatic and you will need to show that there are special circumstances
which warrant such an extension before it is granted.
If you have supplied drawback goods using the INF 7 procedure (see paragraph 12.18), you must send the
endorsed INF 7 returned by your customer with your repayment claim.
If you re-export drawback goods on which interest and import VAT have been paid, you may also reclaim the
interest on the C&E 813 or C&E 823. If you do not re-export all your products there are various ways of
working out the proportion duty you can claim back. You will find examples in section 44.
50

17. Compensatory interest

This section tells you about compensatory interest which is charged when suspension goods are diverted to
the Community market. This includes transfers of suspension goods to drawback.

17.1 Why compensatory interest is charged?

Compensatory interest is charged on IPR suspension goods to prevent operators who divert such goods
gaining a financial advantage over operators, who import directly to the Community market who will not have
had the benefit of deferring the payment of duty due on the same goods at import.
Compensatory interest will also be due on ex IPR drawback goods that are re-entered to a customs
procedure under which duty is suspended eg IPR suspension, customs warehousing, TI relief, or Free Zone
which are subsequently released to the Community market.

17.2 How compensatory interest is calculated?

Compensatory interest is calculated from the first day of the month following the date of first entry to IPR
suspension in the EC, to the last day of the month in which the goods are diverted and the customs debt is
incurred. If goods are not put to an eligible disposal by the end of the agreed throughput period and no
extension has been requested, the debt will be incurred on the day following the date the throughput period
expires. If you have IPR suspension goods which were previously entered to IPR drawback, the charging
period starts from the first day of the month following the month in which the repayment claim under
drawback was made.
If you use Customs Freight Simplified Procedures, the charging period for interest commences either on the
first day of the month following the date of acceptance of your simplified declaration or, if you use the local
clearance procedures, the first day of the month following the date on which the goods left temporary storage.
The minimum charging period is one month, no interest is due for periods less than one month. Where ex IPR
suspension goods are transferred to a customs warehouse, Free Zone, TI relief or OPR before diversion, any
time spent in the other suspensive procedure is included in the charging period.
If you send or receive goods from another Member State, Form INF 1 (see paragraph 12.16) will be used to
establish the date when the goods first entered IPR in the EC. The INF1 can be raised and sent with the
goods at the time of transfer or when the goods will be diverted. Examples of interest calculations are in
section 45.

17.3 Other ways of calculating the interest

If the method at paragraph 17.2 is a problem to you in terms of administrative costs or your processing
operations involve other Member States, you can make your own proposals for a simplified method of
calculation suited to your systems. Contact your supervising office for further information.

17.4 Compensatory interest rate

Compensatory interest rates are set on the 3 month money market rates published in the statistical annex of
the Monthly Bulletin of the European Central Bank. The UK and Euro Zone Member State interest rates are
available on our Internet website at www.hmce.gov.uk under “ Business & Trade/ Importing & Export EC
trade or from your supervising office.
The rate applied will be the rate 2 months before the month in which a customs debt is incurred and applies
to the whole period for which interest is due. If goods were first entered to IPR suspension in another Member
State, the rate for that country will apply.

17.5 Payment of compensatory interest

You must pay the compensatory interest on form C88 (SAD) when you pay the duty and import VAT. You will
need to quote one of the CPCs in the 40 51 series (see paragraph 0) in box 37 and show the amount of
interest in box 44. The interest payment is not subject to VAT, neither is the potential VAT at import subject to
interest. Section 43 explains how to complete the diversion entry.

17.6 Circumstances when compensatory interest will not be due

No Interest is due if:
· the period for interest is less than one month;
· the interest due on a diversion entry is less than €20;
 51

· you release the goods to free circulation to obtain a preference certificate (EUR1, invoice declaration
or suppliers declaration) for export to a preference-giving country (the rules are explained in Notices
827 European Community preferences: export procedures, 828 Export preferences: Rules of origin for
exports and 829 EC Export preferences: Rules of origin for export); you destroy goods under Customs
supervision and the resultant scrap and waste is released to free circulation, see paragraph 15.30;
· you divert secondary compensating products listed in Annex 75 of Commission Regulation 2454/93
which are eligible to be charged at their "own rate" due to export of your main compensating products,
see paragraph 3.5; or
· you can prove that a firm export order has been lost due to circumstances beyond your control. You
must forward to your supervising office written evidence to support your claim.
Note - If you wish to divert goods whilst your claim is being considered you must provide security to cover the
full amount of potential interest unless
· you paid cash security at least equal to the amount of duty due;
· goods are placed under TI relief with partial relief from import duties (see Notice 200 Temporary
importations);
· drawback goods are placed under the Community transit procedure, customs warehousing, TI relief,
IPR suspension or free zone, with a view to subsequent re-export from the EC, are released to the
Community market but no repayment for the goods in question has been made.
52

18. Aircraft construction and repair

This section explains the simplified procedures which are available if you are involved with aircraft
construction or repair, the manufacture of civil aircraft parts or if you are involved in the construction of
satellites or ground station equipment.

18.1 General
Note: Parts, components and other goods falling within Chapters 25-97 of the Common Customs Tariff, that
are imported for civil aircraft with a certificate of airworthiness issued by a party authorised by aviation
authorities within the community or aviation authorities of a third country, do not need to be entered to IPR to
obtain duty relief. These parts should be entered on a C88(SAD) using CPC 40 00 46 or 40 00 49 as
appropriate, (see Notice 28)
Eligible operators who can use IPR are those involved in:
· the manufacture of civil aircraft for delivery to civil airline companies (including EC airlines);
· the repair, modification or conversion of civil aircraft;
· the manufacture, repair or modification of parts for civil aircraft;
· the manufacture, repair, modification or conversion of satellites, launch vehicles and ground station
equipment which are an integral part of those satellites, including those destined for launching sites in
the EC; or
· the manufacture, repair, modification, or conversion of parts of satellites, launch vehicles and ground
station equipment.
The goods covered range from nuts and bolts to wings and engines.

18.2 Goods and processes excluded from the simplified procedures

Items excluded from the simplified procedures include:
· Commissary stores, see paragraph 15.18;
· in-flight meals and other disposable items;
· any goods used in the construction, repair, modification or manufacture of parts for non-civil aircraft;
· ground station equipment remaining after the launch must not be counted as exported;
· equipment destined for divorced tracking stations situated within the EC; and
· dual purpose goods are not covered by the simplified procedures until a specified destination has
been established, see paragraph 18.5.

18.3 Definition of civil aircraft and aircraft parts

A civil aircraft is any aircraft which carries a civil registration (UK, EC or non EC). The term includes:
· aircraft under 8000 kgs;
· aircraft imported from outside the EC which do not carry military or non civil registrations;
· aircraft designed or adapted for recreation or pleasure; and
· aircraft leased by a civil airline or other outlet which continue to be maintained to Civil Aviation
Authority (CAA) or equivalent standard.
A civil aircraft part is a part that has been issued with a certificate of conformity or an airworthiness
certificate in accordance with airworthiness standards administered by internationally recognised aviation
authorities. The part must be intended to be fitted to a civil aircraft and includes raw materials such as sheet
metal or other base products and bulk goods such as fuel, paint, glue, fabric etc.
Any part that has not been issued with a certificate of conformity or an airworthiness certificate cannot be
considered to be an “aircraft part” for the purposes of this section.

18.4 Simplified procedures

The simplified procedures provide for:
· a simplified application for authorisation;
· use of IPR suspension without requiring completion of a full suspension return;
 53

· construction of satellites or ground station equipment without the need to export the finished products
to discharge your duty liability;
· manufacture of civil aircraft and to count as exports the sale or transfer of a civil aircraft to an airline
company, including EC airlines;
· repair, modification or conversion of civil aircraft and to count as exports the parts used in these
processes; and
· liability to duty to be discharged on the manufacture of aircraft parts once a part has been
manufactured. The goods may then be disposed of by passing them to an aircraft manufacturer, a civil
airline or to another trader for further processing. As IPR duty liability has been discharged, no official
documentation is required but you will be responsible for ensuring that an audit trail exists from the
goods leaving your premises to fitment to a civil aircraft. Receivers of discharged parts are not
required to hold an IPR authorisation.
If you import aircraft parts from outside the EC for fitment, the parts do not, by virtue of being an aircraft part,
discharge their liability. If such parts are entered to IPR, discharge of liability on the aircraft part will not be
made until the part has undergone a process within the EC and the final destination of the part has been
established. Equipment destined for divorced tracking stations within the EC is not covered by these
simplifications.

18.5 Dual purpose goods

Dual purpose parts are parts for which there is alternative use to the fitment to a civil aircraft. Unless a
specific use is determined for these parts, they are not eligible for discharge upon manufacture.

18.6 IPR and End Use

If you have End Use stocks on hand you will have the option, on a one off basis, of transferring that stock to
IPR. You may however wish to retain your current End Use authorisation or apply for an integrated IPR and
End Use authorisation if you will continue to be involved with other End Use authorisation holders.

18.7 How to apply to use the simplified procedures

Application is made on Form C&E 810 taking account of the following:
In Box you should
9 insert (as appropriate):
· (building) civil aircraft for delivery to airline companies; or
· (carrying out) the repair, conversion or modification of civil aircraft; or parts;
· carrying out the manufacture, repair or modification of parts for civil aircraft; or
· (building) satellites and/or parts of satellites/ground station equipment;
and list the sites involved in the processing.
10 quote economic code 30(9) or 30(4) for repair
14B note that you wish to use the simplified procedures for aircraft/satellites
16 (additional information) - attach a schedule showing any End Use goods currently held in stock
which are to be transferred to IPR and your proposed imports/receipts. The CN code numbers
can be shown to the first four digits only. However if equivalence applies, eight digits must be
shown.

The remainder of the Form C&E 810 should be completed as appropriate. No estimated quantities or values
are required unless use of equivalence (see section 13) is applied for.
The application will be considered by Customs. If approval is given, you will receive an authorisation letter
setting out the terms and conditions of the authorisation.

18.8 Period required to enter, process and dispose of the IPR goods
The period will be agreed taking into account the time you need to receive, process and dispose of the goods.
At the end of the agreed period, you will need to provide your supervising office with a list of any goods still in
stock. This will be treated as an application to re-enter the goods to IPR although no formal entry will be
required. Re-entry and start of a new throughput period will commence on notation in your records.
54

18.9 Returning goods to stock

IPR is discharged when goods are first put to an authorised use. Goods subsequently returned to stock (eg
rotables for repair) are regarded as in free circulation and should not be entered in your IPR records.
However, if such goods are removed from non EC aircraft or are imported from outside the EC, they will need
to be entered to IPR.

18.10 Transferring goods

For goods that have not been discharged of duty liability, the IPR transfer procedures in section 12 apply.
If goods have discharged duty liability eg parts have been manufactured or have been fitted to an aircraft,
transfers within the UK and to other Member States can be made without official documentation however, the
accompanying commercial documents must be clearly endorsed
"Regulation 2454/93 Article 544 - only for fitment to civil aircraft"

18.11 Preference
Discharged aircraft and aircraft parts, although discharged of their duty liability, are not in free circulation.
Preference cannot be claimed if aircraft or aircraft parts are exported outside the EC.

18.12 Suspension returns and drawback claims

If you use suspension, you must complete and return form C&E 812. However your authorisation will state
whether a balanced account of each receipt is required or whether goods you import or receive from other
authorisation holders, under IPR and your disposals, may be identified by cross reference to your own
records. The C&E 812 must be completed as normal for goods diverted to free circulation.
If you use drawback, Form C&E 813 must be completed in the normal way, see paragraph 16.3.
Use in construction of satellites - discharge is made when the goods are used either in the construction of
satellites or in the ground station equipment which is an integral part of those satellites, destined for launching
sites in the EC. Any ground station equipment left after the launch must not be counted as exported.
Evidence of discharge should be noted in the production records.
 55

19. Inward processing in a Customs warehouse or Free Zone

This section tells you how, subject to certain conditions, you may process goods under IPR suspension while
they remain physically in a customs warehouse or Free Zone.

19.1 General
If you use IPR suspension you can apply to carry out IPR operations on the premises of a type A or C
customs warehouse which has been approved to use simplified procedures or in a Free Zone. Although the
goods remain physically in the warehouse or free zone you must transfer them from your warehouse or free
zone records to the IPR records. You must hold an authorisation with LCP approval to receive goods unless
transfer is to be made using the declaration procedure (see paragraphs 12.5 and 12.6).
Warehouse keepers assume responsibility for the goods and must maintain stock records to monitor the
operations.

19.2 How to apply for approval

You must obtain prior authorisation on a C&E 810 (either a local, Specific, Single Community or Integrated
authorisation) specifying the warehouse (indicating type) or free zone where the processing will be carried
out. Note Box 14B that you wish to use these simplified procedures.

19.3 Simplified transfer procedures

Subject to Customs approval simplified procedures may be used for the transfer using commercial
documents. These documents must show the IPR authorisation number and at least sufficient information to
identify the goods. Customs warehousing or free zone storage is discharged by entry in your IPR records
which must be cross referenced to an entry in your customs warehouse or free zone stock records.
If you transfer the goods back to customs warehousing or Free Zone after processing, commercial
documents may also be used. These documents must show the IPR authorisation number and at least
sufficient information to identify the goods. In addition "IP/S goods" must be shown on the commercial
document covering the transfer. IPR is discharged by entry in the customs warehouse or Free Zone stock
records which must show that the goods are ex IPR.
Where the import goods are subject to import license restrictions (see paragraph 10.5) the wording
"Commercial policy" must also appear.
If you export compensating products instead of transferring them back to warehousing or free zone you
should complete form C88 (SAD) and present it to Customs or the warehouse keeper.

19.4 Diverting goods from warehousing or a free zone to the Community market
If the goods were in the IPR regime before warehousing or free zone, the period spent in the customs
warehouse or free zone will be included in the period for charging compensatory interest, see section 17.

19.5 VAT
You do not pay import VAT on goods entered to IPR suspension or on customs warehouse or Free Zone
goods. If you divert the goods to free circulation, import VAT will be due.
56

20. Continental Shelf

20.1 General
Normal authorisation, entry, transfer and discharge procedures apply to IPR used for Continental Shelf
operations. IPR can only be used for the processing of goods intended for the Continental Shelf outside UK
territorial waters.
Simplified procedures can be applied for to cover the movement of IPR goods to or from UK Continental Shelf
outside territorial limits, see paragraph 20.3.
You must obtain prior authorisation on a C&E 810 (either a local, Specific, Single Community or Integrated
authorisation) if you wish to use these procedures.
If you are involved in Continental Shelf operations you also have the option of using End Use Relief which
can be used within or outside UK territorial limits, for further details see Notice 770 Imported goods: End-use
relief.

20.2 Transfers
If you transfer goods to another IPR authorisation holder or to another customs procedure eg customs
warehousing, the procedures in sections 12 and 15 apply. For goods dispatched to or from the Continental
Shelf outside territorial waters of the UK or other Member States, normal export/import procedures will apply
unless your IPR authorisation includes approval to use the simplified procedures in paragraph 20.3.

20.3 Authorisation to use simplified procedures to declare goods despatched to or returned from the
continental shelf outside EC territorial waters
The following arrangements will not apply to any shipment or return of goods where a full customs declaration
is required. This includes Excise goods, CAP goods (but not where CAP scheduling has been approved),
goods entering the EC for the first time or goods entered to IPR drawback.
Application can be made by letter on company headed notepaper or at the same time as you apply for IPR
authorisation on form C&E 810, inserting the required details in the additional information Box 16. The
additional information needed is set out in section 46. If you are approved, a brief supplementary declaration
will be required each month confirming that all movements of IPR goods have been entered in your records.
A specimen declaration is at section 47.
Where it is agreed there is a trade need, approvals may provide for goods to be despatched from or received
into premises not owned by the authorised operator eg the premises of a supplier or receiver. In such
circumstances the location of the goods must be entered in the records.
Goods shipped to or returned from the Continental Shelf outside territorial waters of other Member States will
also require an Intrastat declaration, where the shipment value or return value from other Member States
exceed the Intrastat threshold. The goods will therefore need to be classified to the correct commodity code,
see also Notice 60 Intrastat.
Assistance with classification is available from theTariff and Statistical Office classification Helpline on 01702
366077, or via e-mail to classification.tso@hmce.gov.uk.
The arrangements in this paragraph are without prejudice to Customs’ right to inspect any goods leaving or
entering the UK, to take samples, require production of documents and exercise any other powers provided in
law.

20.4 Inward manifest

Goods may be moved from the port or airport to an authorised operator’s premises without formalities where:
· the ship or aircraft manifest is annotated with the operator’s authorisation number or name and
address;
· the operator adheres to any conditions in the authorisation concerning notifying Customs (standing
notification may be authorised where the nature of the goods and their rapid turnover so warrant); and
· the goods are entered in the operator’s records on return.
The form of the records and the details to be entered will be agreed as part of the authorisation. The date,
description of the goods, duty relief claimed and inland workpoint/place of destination, will always be required
as will a reference number which will enable the goods to be traced through stock and financial records.
 57

20.5 Outward manifest despatches

Authorised operators must declare goods by entering them in their records prior to any shipment to an
offshore platform/workpoint. The form of records and details to be entered will be agreed as part of the
authorisation. The date, customs status of the goods, their description and the platform/workpoint of
destination will always be required, as will a reference which will enable the goods to be traced through stock
and financial records.
Entry into records prior to shipment should as far as possible, be met from existing commercial records and
will be met by having sufficient available commercial documentation for Customs to verify operations.
Authorised operators must notify Customs when goods are to be removed however this may be waived
where justified by the nature of the goods and where there is a rapid turnover. Notification requirements will
form part of the authorisation.
The goods must be accompanied by a copy 3 of the SAD (C88) or a commercial document endorsed with the
operator’s authorisation number.
58

21. Tax free shopping

21.1 General
The UK in common with other Member States have procedures that allow VAT zero rating of goods sold by
retail for personal export. In the UK the procedure is known as the VAT Retail Export Scheme (RES).
VAT can be refunded under the terms of the RES, to overseas visitors going to a final destination outside the
EU, who export goods within three months of purchase. At the time of sale form VAT 407 is completed
providing details of the retailer, entitled customer, export destination and a description of the goods. The
customer returns the certified VAT 407 to the retailer as evidence of export for VAT to be refunded (see
Notice 704 VAT retail exports).
Eligible Retailers can also apply for duty relief under IPR for goods sold to overseas visitors exported to non
EC destinations.

21.2 Eligible Retailers

Any retailer who imports or arranges for import of non EC goods to be re-exported outside the Community
under the VAT Retail Export scheme, may apply for an authorisation on form C&E 810 to import those goods
to IPR.
If authorised, the retailer will be responsible for all goods they enter to IPR until they provide evidence of their
disposal to discharge their duty liability.

21.3 Application for authorisation

Applications should be made on form C&E 810. You may also apply for an agent to administer the scheme on
your behalf however, if you are authorised, you will remain responsible for all operations carried out under the
terms of the IPR approval and for ensuring proper records are maintained.
Except for goods which are excluded from entry to drawback (see paragraph 27.2) all applications may only
be considered under IPR drawback.
For goods only eligible under IPR suspension, goods sold to eligible customers remain under IPR
arrangements until the customer leaves the Community with the goods. Under the VAT Retail Export Scheme
this can be up to 3 months after purchase. You will therefore need to provide security until evidence of export
is obtained.

21.4 Sales to entitled customers

Only goods and sales that are eligible under VAT RES can be entered to the IPR scheme. When a sale is
made a VAT 407, raised as normal for the VAT Retail Export Scheme, will also be used for IPR purposes.
The VAT 407 raised for VAT RES sales will be used purely as evidence of export for IPR purposes and must
not be altered in any way other than required under the VAT scheme except for being endorsed with the IPR
authorisation number and "IP/D goods" (for drawback) or "IP/S goods" (for suspension). A sales voucher with
a unique reference number cross referenced to the VAT 407 should also be completed.

21.5 Period to enter process and dispose of IPR goods

The periods outlined in paragraph 3.1 apply. Under the Tax Free scheme the period required will run from the
date of entry to IPR to the date of sale plus 3 months ie the time by which goods are required under VAT RES
to have been exported from the Community.

21.6 Drawback claims/suspension returns

The normal requirements for submitting repayment claims and suspension returns in section 16 apply.
 59

22. IPR Scotch Whisky scheme

22.1 General
IPR may be allowed on non Community maize or barley imported for use in the production of grain whisky.
The scheme is administered on behalf of UK grain whisky distillers by the Scotch Whisky Association who
provide Customs with an annual reconciliation account. This details the quantities of cereals imported levy
free to IPR, quantities of grain whisky and immature grain spirit exported under the scheme.
Special requirements apply
Import co-efficient: quantities of cereals that can be entered to IPR levy free are required to
be weighted by an annually revised co-efficient, the remaining balance
must be entered levy paid. The co-efficient is determined by the
Commission for the Whisky Export Refund Scheme and represents the
whisky industry’s export performance to non EC destinations. The co-
efficient is published in the Official Journal of the EC and applies to the
period 1 July – 30 June each year.
Malt: high diastatic malted barley can be used in place of cereals but must be
converted into a cereals equivalent. A co-efficient of 1.30 is used to
calculate the barley equivalent of malt.
Gross rate of yield: this is determined by Customs on the basis of quarterly spirit returns
produced for each grain distillery. These detail the quantities of spirit
produced per tonne of cereal. When returns for each quarter are
available, the Scotch Whisky Association are advised of the yearly
average.
Net rate of yield: this is calculated by the Scotch Whisky Association using the average
gross rate supplied by Customs together with the previous 5 years
production figures to calculate an industry wide net rate of yield. This
takes into account losses from milling, warehousing, maturation,
blending and bottling. The net rate of yield is used to determine the
grain whisky equivalent for IPR cereals entered to the scheme by the
Scotch Whisky Association in their annual statement to Customs.
Throughput period: an average estimated period (industry wide), from distillation through
maturation, blending, storage and export is accepted to be six years.

22.2 Application for authorisation

Application needs to be made by each individual grain whisky distiller on form C&E 810, see section 6. Any
other distilleries that will receive levy free cereals for grain whisky distillation on behalf of the applicant should
be included in Box 1B of the form. If goods will also be consigned and delivered to an agent their details
should also be included in the application.
60

23. Production accessories

23.1 Production accessories, catalysts and agents

You can use IPR to obtain relief from duty on goods which are not found in the exported products but which
allow or facilitate their production. This applies even if they are entirely or partially used up in the process eg:
· chemical reaction accelerators, retarders or arresters;
· goods needed to protect products during or after their working; or
· goods needed to create the physical or chemical environment essential to the performance of certain
processing operations.
These may not however include the use of:
· fuels or energy sources other than those needed for the testing of compensating products or for the
detection of faults in import goods needing repair;
· lubricants other than those needed for the testing of compensating products, their adjustments or
withdrawal; or
· equipment and tools.

23.2 Authorisation
You can apply for authorisation to use a production accessory on goods you enter to IPR or on free
circulation goods provided they will be exported from the EC. If you are processing IPR goods you should
include the production accessories on your application.
If you will be processing free circulation goods you will be restricted to using IPR suspension and security will
be required, see paragraph 2.8. You should apply on form C&E 810 using the completion notes in section 36.
You will need to provide details of the free circulation goods and all products made from them together with
details of the intended destination of export.

23.3 Repeated use

If production accessories remain unchanged after use in your processing operation and can be used
repeatedly, they will remain under IPR until they are re-exported or transferred to another customs procedure.
If you want to continue to use them to process further IPR goods or free circulation goods for export, you
must apply to your supervising office to have your through-put period extended if necessary.

23.4 Discharging duty liability

To ensure that no advantage is gained through using IPR over UK or other community producers of similar
goods, liability on production accessories will be discharged:
(a) if used on IPR goods - when all the main compensating products are exported and any secondary
compensating products are exported (unless an own rate applies, see paragraph 0). If the goods
are held under IPR suspension you have the option, if you do not export them, of applying to
destroy them under Customs supervision, see paragraph 15.30;
(b) for accessories that can be used repeatedly - when all main and secondary compensating product
have been exported or, for any secondary compensating products, an own rate can be applied. If
the goods are held under IPR suspension you have the option, if you do not export them, of
applying to destroy them under Customs supervision;
(c) if used on free circulation goods - when all the products are exported. Duty and compensatory
interest (if security is other than by cash deposit) will be charged on the proportion of production
accessory used for any products that are not exported.
In addition to the above if the production accessory is not used up in the production process it must itself be
re-exported or transferred to another customs procedure.

23.5 Diverted IPR goods

If you only export a proportion of your main compensating products, relief will be determined on the basis of
the amount of production accessory used to facilitate the production of the quantity of main compensating
products exported.
If an own rate does not apply to any secondary compensating product(s), you will be charged/not be entitled
to reclaim:
 61

· duty and import at the rate appropriate to the imported goods;

· duty and import on the proportion of production accessory deemed to have been used to produce the
quantity of secondary compensating products; and
· compensatory interest (suspension goods).
62

24. Miscellaneous questions

This section deals with other questions which may arise if you use IPR.

24.1 Stolen goods

If your IPR goods are stolen you will still have to pay the suspended duty and compensatory interest on
suspension goods or will not be able to reclaim duty paid under drawback unless the goods are recovered
and returned to IPR control.

24.2 Processed cheese

If you export processed cheese under CN code 0406 30, export refunds are available on the basis of their
components. To be eligible one of the ingredients in the exported product must have been imported from
outside the EC to IPR.
Applications must be considered by DEFRA, application should be made on form C&E 810 and be clearly
marked
"Applied for in accordance with Article 1(c) of EC Regulation 1466/95".

24.3 Supply balance goods

If export refunds for the goods referred to in paragraph 26 are no longer available, you can apply for a supply
balance certificate which is issued on the basis of a specific quantity of goods. Application should be made to
the RPA at:
Lancaster House
Hampshire Court
Newcastle-Upon-Tyne
NE4 7YH
Tel: 0191-273-9696.
With the certificate, you can apply to use IPR under economic code 30(8) without the need for an economic
test to be carried out. You can also apply for an IPR authorisation in the UK using a certificate issued in
another Member State. The original copy 1 of the certificate must be submitted with your IPR application on
form C&E 810 by the end of the third month following the month of issue of the certificate. Contact our
National Advice Service for details of where to send your completed application. Any applications outside this
time limit or requests for retrospective authorisation back beyond the date of application cannot be
considered under this economic code but, if appropriate, requests may be considered under one of the other
economic codes in section 30.
IPR authorisation will only be considered where:
· the goods to be entered will be processed by the person named on the supply balance
certificate or where that person arranges for the goods to be processed on their behalf; and
· the goods stated on the supply balance certificate are to be manufactured into the goods
listed in Annex B of Commission Regulation (EEC) No. 1520/2000 (details are available on
the EC Commission website at www.Europa.eu.int or from our National Advice Service).
The IPR authorisation can be issued from any future date you request but will only be issued for the quantity
stated on the certificate. You may also be able to apply to enter up to another €150,000 of the same goods
before an economic test is required. If you apply, you will need to state whether the additional amount will be
entered before or after the original certificated quantity.

24.4 Cultural goods

An export licence is required for any of the goods referred to in section 53. This requirement includes any
goods that have been held under inward processing in the EC and is required for any movements of goods to
other Member States. Licenses are issued by:
The Department of Culture, Media and Sport (DCMS)
2 – 4 Cockspur Street, London SW1Y 5DH (Tel: 020 7211 6000) e-mail: enquiries@culture.gov.uk.
 63

25. List of territories inside/outside the EC for customs duty and VAT purposes
Referred to in paragraph 1.2.
The Customs territory of the EC includes the territorial waters, inland maritime waters and airspace of
Member States.

25.1 Territories are inside the EC for customs duty and VAT purposes
Austria Republic of Ireland
Azores Isle of Man
Balearic Islands Italy
Belgium Luxembourg
Denmark Madeira
Finland Monaco
Netherlands Portugal
France Spain
Germany Sweden
Greece United Kingdom

25.2 Territories inside the EC for Customs duty purposes (not VAT)
Åland Islands Martinique
Andorra (only Tariff chapters 25 French Guyana
onwards)
Canary Islands Mount Athos (Agion Poros)
Channel Islands Reunion
Guadeloupe
64

25.3 Territories outside the EC for customs duty and VAT purposes
See Volume 1 and Part 2 of the Tariff.
Andorra (only tariff Chapters 1-24) French overseas territories
Busingen Greenland
Ceuta Heligoland
Commune of Campione d’Italia Lake Lugano
Commune of Livigno Melilla
Faroe Islands San Marino
and all other territories not listed in this section.
 65

26. Goods that require an economic test

Referred to in paragraphs 1.5, 2.3, 4.1 and 6.1
To identify whether your goods require an economic test contact National Advice Service or DEFRA. If you
have access to the Internet you can check the Commission website under the relevant Regulation No.

26.1 Agricultural products covered by Annex I to the Treaty

(a) The following products falling under one of the following common market organisations:
· Cereals sector: Products referred to in Article 1(I) of Council Regulation (EEC) No 1766/92
· Rice sector: Products referred to in Article 1(I) of Council Regulation (EC) No 3072/95
· Sugar sector: Products referred to in Article 1(I) of Council Regulation (EC) No 2038/99
· Olive oil sector: Products referred to in Article 1(2)(c) of Council Regulation (EC) No 136/66
· Milk and milk products sector: Products referred to in Article 1 of Council Regulation (EC) No
1255/99
· Wine sector: Products referred to in Article 1 of Council Regulation (EC) No 1493/99 and falling
under CN sub-headings:
08 06 10 90
22 09 60
22 04 21 (quality wine excepted)
22 04 29 (quality wine excepted)
22 04 30
(b) Products falling under CN sub- headings:
02 04 10 to 02 04 43
22 07 10
22 07 20
22 08 90 91
22 08 90 99

(c) Products other than those at (a) and (b) for which agricultural export refunds equal to or higher
than zero are fixed.

26.2 Goods not covered by Annex I to the Treaty resulting from the processing of agricultural
products
Goods resulting from the processing of agricultural products and listed in the following annexes of
Regulations on the common organisation of markets in the agricultural sector or concerning production
refunds:
· Annex B to Council Regulation (EEC) No 1766/92 (cereals sector);
· Annex B to Council Regulation (EC) No 3072/95 (rice sector);
· Annex I to Council Regulation (EC) No 2038/99 (sugar sector);
· Annex II to Council Regulation (EC) No 1255/99 (milk and milk products sector);
· Annex I to Council Regulation (EEC) No 2771/75 (eggs sector);
· Annex to Council Regulation (EEC) No 1010/86 (production refunds on certain sugar products used in
the chemical industry); and
· Annex I to Commission Regulation (EEC) No 1722/93 (production refunds in the cereals and rice
sectors).
66

26.3 Fishery products

Fishery products listed in Annexes I, II, V of Council Regulation (EC) No 104/2000 on the common
organisation of the markets in fishery and aquaculture products and products listed in Annex VI to this
Regulation subject to a partial autonomous suspension.
All fishery products subject to an autonomous quota.
 67

27. Conditions and restrictions of IPR drawback

Referred to in paragraph 1.7

27.1 General
The following is a list of some of the main conditions which you must meet if you import, export, process or
hold goods under IPR drawback. Failure to comply with any of these conditions could result in your
prosecution, seizure of the goods, refusal of relief or withdrawal of your authorisation.
If you issue transit or status documents which show the status of the goods as T2 (free circulation) then you
must not make any claims for repayment of import duties.
If you issue preference certificates for the goods then you must not make any claim for repayment of import
duties unless the preference rules allow you to (see paragraph 15.6 and Notice 827 European Community
Preferences: export procedures).
You must send your supervising office a claim on Form C&E 813 or C&E 823 at intervals agreed with
Customs and within six months of disposing of the goods (see paragraph 16.3).
You must not claim equivalence (common stocking only) unless you are authorised or between goods which
are not of the same 8 digit commodity code, commercial quality and technical characteristics. You cannot use
prior export equivalence or triangulation. See section 13.
If you transfer the goods to another IPR drawback trader you cannot reclaim the import duties from Customs.
You must allow our officer to examine your records and goods at any reasonable time.

27.2 Goods excluded from drawback

· goods subject to quantitative import restrictions (paragraph 10.5);
· goods subject to tariff measures within quotas ;
· goods subject to presentation of an import or export licence ;
· goods subject to a certificate within the framework of the common agricultural policy;
· goods where an export refund or tax has been set for the proposed compensating product;
· goods for export under prior export equivalence (see paragraph 13.7);
· goods for import under triangulation (see section 13); and
· goods which you will process under IPR in a customs warehouse or free zone (see section 19).

27.3 Situations where drawback will not be repaid

Drawback will not be repaid on compensating products which, at the time the declaration for discharge is
presented:
· are subject to an import or export licence;
· are subject to presentation of a certificate within the framework of the common agricultural policy;
· are eligible for export refunds or tax has been set for them; or
· have been transferred for processing under Customs control (PCC) (see paragraph 15.9b);
If you want to claim IPR on goods in paragraphs 27.2 or 27.3, use suspension.
68

28. Conditions of IPR suspension

Referred to in paragraph 1.6
The following is a list of some of the main conditions which you must meet if you import, export, process or
hold goods under IPR suspension. Failure to comply with any of these conditions could result in payment of
duty, prosecution, seizure of the goods, refusal of relief or withdrawal of your authorisation.
Conditions of IPR suspension
1 There should be an intention to export the goods imported to the suspension system
2 If you transfer goods to an authorisation holder approved for IPR drawback you must first pay the
suspended duties, compensatory interest and VAT
3 You must not issue transit or status documents which show the status of the goods as T2 (free
circulation)
4 You must not issue preference certificates for the goods unless the preference rules allow you to (see
paragraph 15.6 and Notice 827 European Community Preferences: export procedures)
5 You must send a return to your supervising office on Form C&E 812 or Form C101 within thirty days
of the expiry of your agreed time limit (see paragraph 16.1)
6 You must not claim equivalence unless you are authorised. Equivalence should not be claimed
between goods which are not of the same 8 digit commodity code, commercial quality and technical
characteristics unless special equivalence rules allow (see section 13)
7 You must allow our officer to examine your records and goods at any reasonable time
8 Unless you are approved to use the inventory system described in paragraph 3.2, you must re-export
or otherwise dispose of the goods within the time limit set by our local officer or apply for an
extension of the time limit
 69

29. Customs procedure codes for import to IPR

Referred to in paragraphs, 10.1, 12.6 and 15.4

29.1 Simplified authorisations (Form C101)

CPC Goods Allowable process Economic Code

41 00 01 Any goods of any value any processing of goods of a non- 30(1)

or commercial nature

51 00 01 Job processing contract 30(2)

UFH 30(3)

Repair, overhaul or adjustment 30(4)

Aircraft/satellite building, modification 30(9)

or conversion

51 00 01 Durum wheat falling within To produce pasta falling within CN 30(6)

CN Code 100 10 000 Codes
1902 11 00 and 1902 19

41 00 01 Section 26 goods under Any process not covered above 30(7)

or €150,000

51 00 01 Note: If IPR drawback

goods they must not
subject to any restrictions
in Section 27

41 00 01 Non section 26 goods Any process not covered above 30(7)

or under€5000,000

51 00 01 Note: if over €500,000

use economic codes
10, 11 or 12 as
appropriate

41 00 01 Non section 26 goods Any process 10 (non availability); or

or over €500,000: 11 (non-conformity)
51 00 01 12 (non-conformity)

29.2 Local authorisations (Form C&E 810)

CPC Goods Allowable process Economic Code

41 00 00 Any goods of any value Any process of goods of a non- 30(1)

or commercial nature

51 00 00 Job processing contract 30(2)

UFH 30(3)

Repair, overhaul or adjustment 30(4)

Goods subject to further processing 30(5)

Aircraft/satellite building, modification 30(9)

or conversion

51 00 00 Durum wheat falling within To produce pasta falling within CN 30(6)

CN Code 1001 10 000 Codes
1902 11 00 and 1902 19
70

CPC Goods Allowable process Economic Code

41 00 00 Section 26 goods under
or €150,000 Note: if IPR
51 00 00 drawback goods they
must not subject to any
restrictions in Section 27
Any process not covered above 30(7) Note: if over
€150,000 an application
for a Specific, Single
Community or
Integrated IPR
authorisation under
economic codes 10, 11,
12 or 99 will need to be
made

41 00 00 Non section 26 goods Any process not covered above 30(7) Note: if over
or under €500,000 €500,000 use economic
51 00 00 codes 10,11 12 or 99 as
appropriate

51 00 00 Supply balance goods To be manufactured into goods listed in 30(8)

(RPA certificate), see Annex B of Commission Regulation
paragraph 19.1 (EEC) No 1520/2000

41 00 00 or Non section 26 goods Any process 10 (non availability); or

51 00 00 over €500,000 11 (price); or
12 (non-conformity)

41 00 00 Non section 26 goods Any process 99 (other) – where

or over €500,000 economic codes 30(1),
51 00 00 30(2), 30(3), 30(4),
30(5), 30(7), 10, 11 or
12 do not apply

29.3 Specific authorisations

CPC Goods Allowable process Economic Code

41 00 00 Section 26 goods over Any process 10 (non availability);

or €150,000 or

51 00 00 Note: if IPR drawback Any process 99 (other) – where

goods they must not economic codes 10,
subject to any restrictions 11 or 12 do not
in Section 27 apply

51 00 00 Section 26 goods over Any process 10 (non availability);

€150,000 or
11 (price); or
12 (non conformity);
or

Any process 99 (other) – where

economic codes 10,
11 or 12 do not
apply

29.4 Entry to IPR drawback from another customs procedure

CPC Scope
41 44 00 goods previously entered to IPR drawback in another Member State (local, specific, single
Community or Integrated IPR authorisation)

41 44 01 goods previously entered to IPR drawback in another Member State (simplified

authorisation Form C101)

41 53 00 goods previously entered to TI relief

 71

CPC Scope

41 54 00 goods previously entered to IPR suspension in another Member State (local, specific,
single Community or Integrated IPR authorisation)

41 54 01 goods previously entered to IPR suspension in another Member State (simplified

authorisation Form C101)

41 71 00 goods previously entered to customs warehousing (see Notice 232) being entered to
drawback using a local, specific, single Community or Integrated IPR authorisation

41 71 01 goods previously entered to customs warehousing (see Notice 232) being entered to IPR
drawback using a simplified authorisation (Form C101), this CPC may only be used where
the customs warehouse and IPR authorisation is for the same person.

41 78 00 goods previously entered to a Free Zone (see Notice 334) being entered to drawback
using a local, specific, Single Community or Integrated IPR authorisation

41 78 01 goods previously entered to a Free Zone (see Notice 334 Free Zones ) being entered to
IPR drawback using a simplified authorisation (Form C101), this CPC may only be used
where the Free Zone and IPR authorisation is for the same person.

29.5 Temporary export and re-import under OPR of IPR drawback goods (see Notice 235) Outward
processing relief
CPC Scope
21 41 15 drawback goods temporarily exported for repair under OPR simplified procedures

21 41 17 drawback goods temporarily exported under full OPR authorisation

41 21 00 IPR drawback goods processed under OPR being re-entered to IPR drawback (local,
specific, single Community or Integrated IPR authorisation)

41 21 01 IPR drawback goods temporarily exported for repair under OPR simplified procedures
being re-entered to IPR drawback (local, specific, single Community or Integrated IPR
authorisation)

29.6 Transferring IPR drawback goods to another customs procedure

CPC Scope
94 41 37 drawback goods diverted to (Shipwork) End Use relief (see Notice 770 Imported goods:
end-use relief)

94 41 38 drawback goods diverted to End Use relief (see Notice 770 Imported goods: end-use relief)

53 41 00 drawback goods transferred to TI relief under a full, Single Community or integrated TI

authorisation (see Notice 200 Temporary Importations)

71 41 00 drawback goods transferred to a customs warehouse (see Notice 232 Custom

warehousing)
72

CPC Scope
78 41 00 drawback goods transferred to a Free zone (see Notice 334 Free Zones)

"53" series drawback goods transferred to TI relief (Simplified TI authorisation) (see Notice 200
Temporary Importations)

29.7 IPR drawback goods transferred to another customs procedure being diverted to free circulation
CPC Scope
40 41 71 drawback goods transferred to customs warehousing being diverted to free circulation

40 41 78 drawback goods transferred to a Free Zone being diverted to free circulation

29.8 Exporting IPR drawback goods outside the EC

CPC Scope
31 41 00 IPR drawback goods being re-exported outside the EC

31 41 53 goods previously entered to IPR drawback re-exported from TI relief

31 41 71 goods previously entered to IPR drawback re-exported from a customs warehouse

31 41 78 goods previously entered to IPR drawback re-exported from a Free Zone

29.9 Entry to IPR suspension (triangulation and “VAT only”

CPC Scope
51 00 02 goods imported under triangulation (IM/EX-INF5) or (EX/IM-INF 9) (see paragraph 13.10
and 13.16)

51 00 03 imports "VAT only" IPR (local, specific, single Community or integrated IPR authorisation)

51 00 04 imports "VAT only" IPR (simplified authorisation Form C101)

29.10 Entry to IPR suspension from another customs procedure

CPC Scope
51 44 00 goods previously entered to IPR drawback in another Member State (local, specific, Single
Community or Integrated IPR authorisation)

51 44 01 goods previously entered to IPR drawback in another Member State (simplified

authorisation Form C101)

51 53 00 goods previously entered to TI relief being transferred to IPR suspension (local, specific,
Single Community or integrated IPR authorisation)

51 54 00 goods previously entered to IPR suspension in another Member State (local, specific,
Single Community or integrated IPR authorisation)

51 54 01 goods previously entered to IPR suspension in another Member State (simplified

authorisation Form C101)
 73

CPC Scope
51 71 00 goods previously entered to customs warehousing being transferred to IPR suspension
(local, specific, Single Community or integrated IPR authorisation)

51 71 01 goods previously entered to customs warehousing being transferred to IPR suspension

(simplified authorisation Form C101

51 71 02 goods previously entered to customs warehousing being transferred to IPR suspension

(VAT only) (local, specific, Single Community or integrated IPR authorisation)

51 71 03 goods previously entered to customs warehousing being transferred to IPR suspension

(VAT only) (simplified authorisation Form C101).

51 78 00 goods previously entered to a Free Zone being transferred to IPR suspension (Local,
specific, Single Community or Integrated IPR authorisation)

51 78 01 goods previously entered to a Free Zone being transferred to IPR suspension (simplified
authorisation Form C101),

51 78 02 goods previously entered to a Free Zone being transferred to IPR suspension (VAT only)
(Local, specific, Single Community or Integrated IPR authorisation)

51 78 03 goods previously entered to a Free Zone being transferred to IPR suspension (VAT only)
(simplified authorisation Form C101)

51 91 00 goods previously entered to PCC being transferred to IPR suspension (Local, specific,
Single Community or Integrated IPR authorisation)

51 91 01 goods previously entered to PCC being transferred to IPR suspension (VAT only) (Local,
specific, Single Community or Integrated IPR authorisation)

29.11 Temporary export and re-import under OPR of IPR suspension goods (see Notice 235 Outward
processing relief)
CPC Scope
21 51 16 suspension goods temporarily exported for repair under OPR simplified procedures

21 51 18 suspension goods temporarily exported under full OPR authorisation

21 55 00 IPR suspension/Excise warehouse goods temporarily exported under OPR

51 21 00 re-importation to IPR suspension following processing under OPR

51 21 01 re-importation to IPR suspension following processing for repair under OPR simplified
procedures
74

29.12 IPR suspension goods being diverted to free circulation

CPC Scope
40 51 00 suspension goods being diverted to free circulation

40 51 41 suspension goods previously entered to drawback being diverted to free circulation

40 55 00 suspension/Excise warehouse goods diverted to free circulation

40 51 53 suspension goods transferred to TI relief being diverted to free circulation

40 51 71 suspension goods transferred to customs warehousing being diverted to free circulation

40 51 78 suspension goods transferred to Free Zone being diverted to free circulation

42 51 00 suspension goods diverted to free circulation with zero rated onward supply
 75

29.13 Transferring IPR suspension goods to another customs procedure

CPC Scope
94 51 37 suspension goods diverted to (Shipwork) End Use relief (see Notice 770 Imported goods:
end-use relief)

94 51 38 suspension goods diverted End Use relief (see Notice 770 Imported goods: end-use relief)

53 51 00 suspension goods transferred to TI relief under a full, Single Community or integrated TI

authorisation (see Notice 200 Temporary Importations)

‘53’ series Suspension goods transferred to TI relief (Simplified TI authorisation – see Notice 200
Temporary Importations)

71 51 00 suspension goods transferred to a customs warehouse (see Notice 232 Customs

warehousing)

78 51 00 suspension goods transferred to a Free Zone (Notice 334 Free Zones)

91 51 00 suspension goods transferred to PCC (Notice 237 Processing under Customs Control)

29.14 Entering goods to the export procedure using SDP/LCP

CPC Scope
10 41 00 IPR drawback goods being entered to the export procedure using SDP. The supplementary
declaration must be made under a CPC in the 31 41 series.
10 41 01 IPR drawback goods being entered to the export procedure using LCP. The supplementary
declaration must be made under a CPC in the 31 41 series.
10 51 00 IPR suspension goods being entered to the export procedure SDP. The supplementary
declaration must be made under a CPC in the 31 51 series.
10 51 01 IPR suspension goods being entered to the export procedure using LCP. The supplementary
declaration must be made under a CPC is the 31 51 series.
10 51 02 IPR suspension goods being entered to the export procedure using equivalence, prior import
equivalence (without triangulation) or prior export equivalence (without triangulation) using
SDP. The supplementary declaration must be made under a CPC in the 31 51 series,
10 51 03 IPR suspension goods being entered to the export procedure using equivalence, prior import
equivalence (without triangulation) or prior export equivalence (without triangulation) using
LCP. The supplementary declaration must be made under a CPC in the 31 51 series,
10 51 04 IPR suspension goods being entered to the export procedure using prior import equivalence
(with triangulation) or prior export equivalence (with triangulation) using SDP. The
supplementary declaration must be made under a CPC in the 31 51 series,
10 51 05 IPR suspension goods being entered to the export procedure using prior import equivalence
(with triangulation) or prior export equivalence (with triangulation) using LCP. The
supplementary declaration must be made under a CPC in the 31 51 series,

29.15 Exporting suspension goods from the Community

CPC Scope
31 51 00 re-export of IPR suspension goods outside the EC

31 51 01 re-export of IPR suspension (VAT only) goods outside the EC

76

CPC Scope

31 51 02 export outside the EC of goods under IPR triangulation (EX/IM-INF5) or (IM/EX-INF9)

31 51 03 re-export outside the EC of CAP goods comprising of IPR suspension and Community
goods

31 51 04 re-export of IPR suspension (Scotch Whisky) from a warehouse outside the EC

31 51 53 goods previously entered to IPR suspension re-exported from TI relief

31 51 71 goods previously entered to IPR suspension re-exported from a customs warehouse

31 51 73 IPR suspension/Registered Tobacco Premises goods being re-exported from the EC

31 51 78 goods previously entered to IPR suspension re-exported from a free zone

 77

30. Guidance notes on economic codes and evidence required for authorisation under certain
economic codes
Referred to in paragraph 2.3, 2.4, 3.10, 10.1 and 24.3

30.1 Code 10 (unavailability)

Unavailability of goods produced in the Community falling within the same 8 digit CN code, being of the same
commercial quality and having the same technical characteristics (comparable goods) as the import goods
referred to in the application. The value of goods to be entered is in excess of:
· €500,000 for non section 26 goods; or
· €150,000 for section 26 goods.
Where an economic test is required (see paragraph 6.1) DEFRA will require up to date documentary
evidence of approaches made (specifically for your export business) to UK and other EC producers
for the same goods as your import goods, with copies of replies showing your requirements could
not be met in sufficient quantity or could not be supplied in the time required.

30.2 Code 11 (price)

EC goods of the same kind are produced in the EC but cannot be used because their price makes the
proposed operation economically unviable. The value of goods to be entered is in excess of:
· €500,000 for non section 26 goods; or
· €150,000 for section 26 goods.
Where an economic test is required (see paragraph 26) DEFRA will consider the impact using EC
goods would make to the cost of your product(s) and the price obtainable for your products(s) in the
non EC market. Although IPR is intended to improve competitiveness in the non-EC export market, it
is not sufficient to show that imported goods are merely cheaper.
To help DEFRA to consider an application on these grounds, the following details are required:
· copies of quotes from possible UK and European Community producers and a copy of the quote from
the non-Community producer. THE QUOTES FROM EC PRODUCERS SHOULD RELATE TO
GOODS ACTUALLY produced IN THE COMMUNITY. Evidence of sourcing attempts from three EC
producers is normally sufficient; and
· simple costing details for representative examples of your exported products. These may be returned
to you if not set out in the following format.
Costing A Based on non-EC B Based on cheapest EC
material* alternative

Cost of materials A and B:

Cost of other materials or components.
Other costs eg labour, fuel and overheads.
Total cost of production(ex-works price).
Your market selling price. Profit
(ie.. %).
Average market selling price of competing goods.

*The price before duty of the goods for processing and the price of comparable goods produced in the
Community less domestic taxes refunded or refundable on export, including any refunds or other amounts
applying under the common agricultural policy.

30.3 Code 12 (contractual obligations)

EC goods do not conform to the expressly stated requirements of the non EC customer or cannot be used in
order to comply with provisions concerning industrial or commercial property rights. The value of goods to be
entered is in excess of:
· €500,000 for non section 26 goods; or
· €150,000 for section 26 goods.
78

Where an economic test is required (see paragraph 6.1) DEFRA will require documentary evidence,
such as a contract or a statement from the overseas customer, showing that the customer insists
upon non EC goods. This should not be dated later than the IPR application.

30.4 Code 30
30: (1) any process in an operation of a non commercial nature ie goods which are privately owned and
for personal use;

30: (2) any goods which are to be processed according to your customers specifications under a job
processing contract;

30: (3) goods subject to usual forms of handling (see section 32);

30: (4) goods for repair, overhaul or adjustment;

30: (5) (successive processing) any processing of any goods obtained under an authorisation already
issued for which an economic test has been carried out. Evidence that an economic test has
been carried out in the UK or another Member State will be required.

30: (6) processing of durum wheat falling within CN code 1001 10 00 to produce pasta falling within CN
codes 1902 11 00 and 1902 19

30: (7) operations in which the value of section26 goods by 8 digit CN code does not exceed €150 000
or for non section 26 goods €500,000 per applicant per calendar year;

30: (8) (supply balance) goods referred to in paragraph 26.1 where the Rural Payments Agency has
issued a document allowing goods to be entered to IPR within limits determined on the basis of
a supply balance under Council Regulation (EC) No 3448/93 Article 11, see paragraph 24.3.

30: 9 building, modification or conversion of civil aircraft or satellites or parts of them.

30.5 Code 99
If you consider the economic conditions are fulfilled for reasons other than those corresponding to the above
codes, you will need to explain this in Box 16 of your application. If your application involves goods listed in
section 26 and exceeds €150,000 contact DEFRA before proceeding.
 79

31. Form C101 and completion notes

Application for Inward Processing Relief - Simplified Procedure

(please see over for conditions of use)

Section 1 - Application EPU/entry number/date ............................ / ....................... / .......................

1 Importer's name/address 2 Processor's name/address

(if different from 1)

3 Description of process 4 Description of processed goods (main and secondary

compensating products)

5 Rate of yield 6 Time required to process and re-export goods (see

note 5 overleaf)

Economic code: tick the code underwhich this application is made (one box only) see Notice Section 30

10 11 12 30(1) 30(2) 30(3) 30(4) 30(5) 30(6) 30(7) 30(9)

7 Declaration: I undertake to comply with the conditions of Inward Processing Relief laid down in Council Regulation
(EEC) No 2913/92 establishing the Community Customs Code and Commission Regulation (EEC) No 2454/93 which
lays down provisions for its implementation.

Signature ......................................................................... Status ..................................................................................

Name (in block letters) .................................................... Date ....................................................................................

Note: authorisation to use Inward Processing Relief is granted upon acceptance of the import entry

Section 2 - IPR suspension return (see over for completion details)

The goods imported under IPR on the above entry have been disposed of as follows (tick as appropriate). Supporting
evidence of eligible disposal is attached.

1. Exported from the EC 4. Transferred to another customs procedure:

2. Transferred to another IPR Customs Warehouse
authorisation holder Free Zone
3. Goods released for use on the TI relief
Community market (including End Use Community Transit
and Processing for free circulation - PCC) 5. Other (please specify) .....................................

Signature .......................................................... Status ................................................... Date

Data Protection Act 1998

HM Customs and Excise collects information in order to administer the taxes for which it is responsible (such as VAT, insurance
premium tax, excise duties, air passenger duty, landfill tax), and for detecting and preventing crime.
Where the law permits we may also get information about you from third parties, or give information to them, for example in order
to check its accuracy, prevent or detect crime or protect public funds in other ways. These third parties may include the police,
other government departments and agencies.

C101 page 1 PT (June 2002)

80

Conditions of Use

If you are importing to suspension, Section 1 overleaf should be completed in triplicate, if importing to drawback complete in duplicate (see also
note 9). Copy one should be attached to the import entry and copy two retained with your commercial records.
If using IPR suspension, when the period allowed for disposal of the goods has expired (see note 5), you should complete copy 3 Section 2 and
forwarded (together with the rest of the form and supporting evidence of disposal) to National Imports Relief Unit, (NIRU), Custom House,
KillyHevlin, Enniskillen, Co. Fermanagh BT74 4EJ. In some instances, you may be asked to forward the document to your local E&IC
authorising office. However, you should only do so when specifically instructed.

Authorisation number - for each import your authorisation number will be the entry number on the C 88 (SAD). All authorised procedures are
subject to post import verification.

1. As the authorisation holder, you are responsible for the duty and associated charges applicable to the goods on the attached entry, whether or
not you take ownership of them.

2. You are authorised to process the goods indicated in box 31 of the attached entry in the manner indicated at item 3 overleaf. The approved
processing operations will be carried out at the premises indicated at item 1 or item 2 overleaf. If you import the goods, in Box 37 of the C88 (SAD)
quote CPC 41 00 01 (drawback) or 51 00 01 (suspension) or 51 00 04 (suspension VAT only). If you remove goods from a customs warehouse
quote CPC 41 71 01 (drawback) or 51 71 01 (suspension) or 51 71 03 (suspension VAT only). For removal from a Free Zone quote 41 78 01
(drawback), 51 78 01 (suspension) or 51 78 02 (suspension VAT only).

3. You are authorised to produce the goods indicated at item 4 overleaf. Where the CN code for the processed goods differs from the imported
goods, you must enter the new CN code here.

4. The rate of yield will be that indicated at item 5 overleaf. If you are unable to establish the rate prior to processing, you should insert "to be
established through processing records".

5. Under this authorisation, you have 6 months to dispose of the imported goods in either the form of processed goods or in an unaltered state.
You may however, request a longer period to dispose of the imported goods. If the authorised period will be exceeded, you must notify NIRU
in writing requesting an extension to the period of relief . Special rules exist for goods classified within Chapters 1/24 of the Tariff. If you
intend to import goods falling within these chapters, you should refer to NIRU before you import the goods.

6. When re-exporting, you must pre-enter the goods quoting, in Box 37 of the C88 (SAD), IPR export customs procedure code 31 51 00
(suspension) or 31 51 01 (suspension VAT only) or 31 41 00 (drawback). Any documents raised to allow the movement of goods to another
customs regime or export must be clearly marked IP/S (suspension) or IP/D (drawback) as appropriate. Transfers within the UK to another C101
user must be made by declaration on a C88 (SAD), stating in Box 44 IP/S (suspension) or IP/D (drawback) , the original entry number and date
of entry. Transfers within the UK to a C&E 810 authorisation holder must be made using the C&E 811 procedure. Transfer to another IPR trader in
another Member State can be made using the Community Transit procedure (T1) or a 3-copy SAD (suspension only)

7. You are responsible for ensuring that records are kept detailing all the processing operations carried out under this authorisation, including
those carried out by any processors at 2 overleaf. All records pertaining to this authorisation and processing should be retained for a minimum of
four years.

8. If you have used IPR suspension, it is your responsibility to submit the suspension return printed at Section 2 overleaf within
30 days of the expiry of the period allowed for processing and disposal. No reminders will be issued. Failure to submit the return within this time
limit may result in a demand being issued for all duties suspended at import together with compensatory interest. Customs reserve the right, where
appropriate, to complete the suspension return on the authorisation holders behalf.

9. If you have used IPR drawback, it is your responsibility to obtain a drawback claim (C&E 823) from NIRU and submit it within six months of
the date of export or disposal. No reminders will be issued. Failure to submit the claim within this time limit may result in your claim being refused.

10. You must notify NIRU of any changes which may influence the content or continuation of this authorisation.

11. Under this authorisation you cannot:

l use any simplified procedures for import eg (CFSP), export, transfer, discharge, aircraft, satellite, commissary stores, processing in a customs
warehouse/Free Zone:
l use equivalence in any form, IPR tax free shopping scheme, cut/slice/cook meat for airline meals;
l enter ozone depleting substances, nuclear materials, ammunition or firearms;
l use catalysts, agents or production accessories, economic code 99 or 30(8);
l use supply balance goods (see Notice 221 paragraph 24.3);
l use goods listed in Annex 44C of Commission Regulation (EEC) No 2454/93 where a guarantee is required.

12. In addition the following goods cannot be entered under the drawback system.

l goods subject to quantitative import restrictions;

l goods eligible for export refunds;
l goods to which a tariff measure within quotas is applied;
l goods subject to presentation of an import or export licence or certificate in the framework of CAP;
l goods which may be diverted to processing under customs control (PCC)

Anyone who gives untrue information about goods imported under these arrangements may be liable to penalties under the
Customs and Excise Management Act 1979. This authorisation is subject to the right of the Commissioners of Customs and
Excise to vary it.

C101 page 1R (06.02) Page 2

 81

32. Usual forms of handling

Referred to in paragraph 3.6, 4.1, 6.1, 14.1 and 30.4
Unless otherwise specified, none of the following handlings may give rise to a different eight-digit
CN-Code. Usual forms of handling listed below will not be permitted if, in the opinion of the Customs
authorities, the operation is likely to increase the risk of fraud.
(a) Ventilation, spreading-out, drying, removal of dust, simple cleaning operations, repair of packing,
elementary repairs of damage incurred during transport or storage insofar as it concerns simple
operations, application and removal of protective coating for transport.
(b) Reconstruction of the goods after transport.
(c) Stocktaking, sampling, sorting, sifting, mechanical filtering and weighing of the goods.
(d) Removal of damaged or contaminated components.
(e) Conservation, by means of pasteurisation, sterilisation, irradiation or the addition of preservatives.
(f) Treatment against parasites.
(g) Anti-rust treatment.
(h) Treatment:
· by simple raising of the temperature, without further treatment or distillation process; or
· by simple lowering of the temperature;
even if this results in a different eight-digit CN code.
(i) Electrostatic treatment, uncreasing or ironing of textiles.
(j) Treatment consisting of:
· stemming and/or pitting of fruits, cutting up and breaking down of dried fruits or vegetables,
rehydration of fruits; or
· dehydration of fruits even if this results in a different eight digit CN code.
(k) Desalination, cleaning and butting of hides.
(l) Addition of goods or addition or replacement of accessory components as long as this addition or
replacement is relatively limited or is intended to ensure compliance with technical standards and
does not change the nature or improve the performances of the original goods, even if this results
in a different eight digit CN code for the added or replacement goods.
(m) Dilution or concentration of fluids, without further treatment or distillation process even if this results
in a different eight-digit CN code.
(n) Mixing between them of the same kind of goods, with a different quality, in order to obtain a
constant quality or a quality which is requested by the customer, without changing the nature of the
goods.
(o) Dividing or size cutting out of goods if only simple operations are involved.
(p) Packing, unpacking, change of packing, decanting and simple transfer into containers even if this
results in a different eight-digit CN-code; affixing, removal and altering of marks, seals, labels, price
tags or other similar distinguishing signs.
(q) Testing, adjusting, regulating and putting into working order of machines, apparatus and vehicles,
in particular in order to control the compliance with technical standards, if only simple operations
are involved.
(r) Dulling of pipe fittings to prepare the goods for certain markets.
82

33. Dairy products referred to in Article 1(1) of Council Regulation 1255/99

Referred to in paragraphs 2.6 and 3.3
CN code Description of goods

(a) 0401 Milk and cream, not concentrated nor containing added sugar or other
sweetening matter

(b) 0402 Milk and cream, concentrated or containing added sugar or other sweetening
matter

(c) 0403 10 11 Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or
to 39 acidified milk and cream, whether or not concentrated not containing added
sugar or other sweetening matter not flavoured nor containing added fruit, nuts
or cocoa

(d) 0403 90 11 Whey, whether or not concentrated not containing added sugar or other
to 69 sweetening matter; products consisting of natural milk constituents, whether or
not concentrated not containing added sugar or other sweetening matter, not
elsewhere specified or included

(e) ex 0405 Butter and other fats and oils derived from milk; dairy spreads of a fat content
of more than 75% but less than 80%

(f) 0406 Cheese and curd

(g) 1702 19 00 Lactose and lactose syrup not containing added flavouring or coloured matter,
containing by weight less than 99% lactose expressed anhydrous lactose,
calculated on the dry matter

(h) 2106 90 51 Flavoured or coloured lactose syrup

(i) ex 2309 Preparations of a kind used in animal feeding: preparations and feeding stuffs
containing products to which this Regulation applies, directly or by virtue of
Council Regulation (EEC) No 2730/75, except preparations and feeding stuffs
to which Council Regulation (EEC) No 1766/92 applies
 83

34. Council Regulation (EEC) No 565/80

Referred to in paragraph 3.3
Article 1 of this regulation lays down general rules for paying in advance of export an amount equal to the
export refunds on the products covered by the following Regulations:
· (oils and fats) Council Regulation No 136/66/EEC;
· (milk and milk products) Council Regulation (EEC) No 1255/99;
· (beef and veal) Council Regulation (EEC) No 1254/99;
· (raw tobacco) Council Regulation (EEC) No 727/70;
· (fruit and vegetables) Council Regulation (EEC) No 2200/96;
· (sugar) Council Regulation (EEC) No 2038/96;
· (cereals) Council Regulation (EEC) No 1766/92;
· (pigmeat) Council Regulation (EEC) No 2759/75;
· (eggs) Council Regulation (EEC) No 2771/75;
· (poultrymeat) Council Regulation (EEC) No 2777/75;
· (fishery products) Council Regulation (EEC) No 100/76;
· (rice) Council Regulation (EEC) No 3072/95;
· (products processed from fruit and vegetables) Council Regulation (EEC) No 2201/96;
· (wine) Regulation (EEC) No 1493/99; and
· (goods with the meaning of) Commission Regulation (EEC) No 1222/94.
Article 2 of this Regulation defines the following:
"products" means the products referred to in Article 1; "basic products" means products intended to be
exported after processing into processed products or into goods;
"processed products" means products obtained from the processing of basic products and to which an export
refund is applicable; and
"goods" means the goods listed in Annexes B and C to Commission Regulation (EEC) No 1222/94.
84

35. Goods requiring a guarantee when transferred

Referred to in paragraph 12.2
Note: Where no figure appears in the minimum rate of guarantee column (column 5), security should be taken
on basis of the actual customs charges that may become due.
1 2 3 4 5
CN code Description of goods Minimum Sensitive Minimum rate of
quantity* goods code** guarantee
(Euro/tonne)
ex Other live animals, of 4000 Kg 1 €1,500/t
0102 90 bovine domestic species
0201 10 Meat of bovine animals, 3000 Kg €2,700/t
fresh or chilled
0201 20 €2,900/t
0201 30 €5,200/t
0202 10 Meat of bovine animals, 3000 Kg €2,700/t
frozen
0202 20 €2,900/t
0202 30 €3,900/t
0402 10 Milk and cream, 2500 Kg €1,600/t
concentrated or
0402 21 €1,900/t
containing added sugar or
0402 29 other sweetening matter €2,500/t
0402 91 €1,400/t
0402 99 €1,600/t
0405 10 Butter and other fats and 3000 Kg €2,600/t
oils derived from milk
0405 90 €2,800/t
ex Fresh bananas, excluding 8000 Kg 1 €800/t
plantains
0803 00
1701 11 Cane or beet sugar and 7000 Kg -
chemically pure sucrose
1701 12 -
in solid form
1701 91 -
1701 99 -
2207 10 Undenatured ethyl alcohol 3hl €2,500/t
of an alcoholic strength by pure alcohol
volume of 80% or higher
2208 20 Spirits, liquors, other 5hl }
2208 30 spirituous beverages }
2208 40 }€2,500/t
2208 50 }pure
2208 60 }alcohol
2208 70 }
ex }
2208 90 1 }
2402 20 Cigarettes containing 35000 pieces €120/1000
tobacco
*Guarantee required only when the quantity exceeds the minimum quantity shown
**Where the CN code is insufficient to identify goods concisely the CN code and sensitive goods code should
be used
 85

36. Form C&E 810 Application/authorisation form for inward processing relief
Referred to in paragraphs 5.2, 6.2 and 23.2

Application/authorisation for Inward Processing Relief

For official use

Authorisation reference IP .....................................................................................................................................................

This authorisation must be renewed by ...............................................................................................................................

1(a) Applicants name and address (this person will be the authorisation holder responsible for duty and associated
charges on all goods to be entered (whether or not they own the goods). If processors are named in box 1b, the
holder will also be responsible for any goods and processing included in this application, that is carried out on their
behalf by the processor(s) (see Notice 221 paragraph 2.7).

.....................................................................................................................................................................................

.....................................................................................................................................................................................

.....................................................................................................................................................................................

.....................................................................................................................................................................................

.....................................................................................................................................................................................

.....................................................................................................................................................................................

Post code .................................................

Contact ..................................................... Tel no. ............................................ Fax no. ..............................................

VAT / TURN number .............................................................................

(b) Processors name and address (if different from 1a) - (enter details of each operator who will enter, receive and/or
dispose of goods under this application and give details of their role in the processing of goods in Box 9.
Note: Form C&E 810 should not be used if any operator is in another Member State. You will need to apply for
authorisation using the model form Annex 67 in Commission Regulation 2454/93 (see Notice 221 Section 7).

.....................................................................................................................................................................................

.....................................................................................................................................................................................

.....................................................................................................................................................................................

.....................................................................................................................................................................................

.....................................................................................................................................................................................

Post code .................................................

2 Application to use (tick as appropriate) suspension

drawback Check that the goods you wish to enter or
procedures you want to use are not
excluded under drawback (see Notice 221
Section 27).

C&E 810 page 1 PT (June 2002)

86

3 Type of authorisation applied for (tick as appropriate) (see Notice 221 paragraph 2.5). Indicate the type of
authorisation you require. If you are amending an existing authorisation or renewing one, state the authorisation
number. If you are applying for an integrated authorisation enter details required for the other customs procedures in
Box 16.

Local (see Notice 221 Section 5)

Specific (see Notice 221 Section 6)
Integrated (see Notice 221 Section 8)
Successive (see Notice 221 Section 5) (attach details of earlier authorisation)
Changes to an existing authorisation Authorisation no .........................................
(See Notice 221 paragraph 2.10)
Renewal of existing authorisation Authorisation no .........................................
(See Notice 221 paragraph 2.11) Date of expiry .............................................

4 Continuation forms indicate the number of additional sheets attached to the application
...........................................................................................

5 Records and accounts (see Notice 221 paragraph 3.12) State where your main accounts are located (if different from
Box 1a). This will be the place where your commercial, tax or other accounting material is located. If processing is
being carried out by more than one person, specify the type of accounts and records used by sub-processors listed at
1b. State what type of records eg stock records, worksheets etc are to be used for customs purposes. These must
identify how goods can be traced from receipt through processing to disposal and provide details of locations, dates,
values, quantity etc. If you are applying to use equivalence (Box 17), records must contain all necessary technical
details to determine/establish equivalence. Details of how you can demonstrate that goods are equivalent should be
stated in Box 16 (see Notice 221 Section 13).

6 Period you wish to be authorised For certain agricultural products restricted periods apply (see Notice 221
paragraph 2.6) The period of authorisation will not normally be dated beyond the date your application is received. If
you wish to apply for an earlier date you will need to explain the reason for the request and be able to show through
your records that all requirements of IPR have been met during this period. The maximum time that a retrospective
authorisation may be granted is one year from the date of application (see paragraph 9.1).

From .......................................................................... To ...................................................................

C&E 810 page 1R (06/02) Page 2

 87

7 Details of goods you wish to place under IPR for processing (the description of goods must be sufficient to
clearly identify the goods). Quantities and values are always required for economic codes 10, 11, 12 , 30(5), 30(6),
30(7), 30(8) and 99 but are not required for economic code 30(1), 30(2), 30(3), 30(4) or 30(9) (see Box 10), unless
equivalence is applied for (see Box 17).

CN code Description Quantity Value

(8 digits)
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
(trade/commercial)
...................................................
...................................................
...................................................
...................................................
...................................................
...................................................
...................................................
...................................................
(estimated)
.............................
.............................
.............................
.............................
.............................
.............................
.............................
.............................
(estimated)
................................................
................................................
................................................
................................................
................................................
................................................
................................................
................................................

8 Details of processed goods/products (main compensating products - MCP) and by-products (secondary
compensating products - SCP) You must detail all goods that will be produced from the goods indicated in Box 7.
(See Notice 221 paragraph 3.4)

CN code Description MCP or SCP Rate of yield

(8 digits)
............................
............................
............................
............................
............................
............................
............................
............................
(trade/commercial) (see Notice 221
paragraph 3.6, 3.7 and 3.8)
.................................................... ............................. ................................................
.................................................... ............................. ................................................
.................................................... ............................. ................................................
.................................................... ............................. ................................................
.................................................... ............................. ................................................
.................................................... ............................. ................................................
.................................................... ............................. ................................................
.................................................... .............................

9 Details of planned activities - describe what processing operations will be carried out on the goods indicated in Box 7
to produce the goods in Box 8 including location(s) of the processing operations. If you have named processor(s) in
Box 1b, state their role in the operation and sequence of operations.

C&E 810 Page 3 PT (June 2002)

88

10 Economic code (see Notice 221 paragraph 3.10 and Section 30) Note: this box must be completed even if the
application is not required to undergo an economic test.

(a) code 10 code 11 code 12 code 99

code 30 (1) non commercial

(2) job processing contract

(3) usual forms of handling

(4) repair

(5) successive (attach details of the authorisation that has had an economic test)

(6) processing durum wheat (falling within CN 1001 10 00 to produce pasta

falling within CN 1902 11 00 and 1902 19)

(7) any goods, any process (Notice 221 Section 26 goods under 150,000 euro)

(7) any goods, any process (Notice 221 Non Section 26 goods under 500,000
euro)

(8) supply balance (attach document issued by the Intervention Board)

(9) building, modification, conversion of civil aircraft or satellites or parts of them

(b) Annex 73 goods (see Notice 221 Section 26) yes no

11 Customs office(s)

(a) Probable office(s) of entry .............................................................

This will be the customs office where you will .............................................................
present your entry declaration .............................................................

(b) Probable office(s) of discharge .............................................................

This will be the customs office where you will .............................................................
present your entries that discharge IPR .............................................................

(c) Supervising office .............................................................

This will be the customs office that issues and .............................................................
will be responsible for your authorisation .............................................................

12 Identification of goods see Notice 221 paragraph 3.12 (indicate the most suitable method of identifying how the
goods in Box 7 can be identified in the processed goods in Box 8).

Serial number

Affixing of plumbs, seals, clip-marks or other distinctive marks

Taking of samples, illustrations or technical descriptions

Carrying out of analysis

other means of identification (explain details in Box 16)

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13 Period required to enter and process goods in Box 7 and to dispose of goods in Box 8 (see Notice 221
paragraph 3.1) how long do you need to enter, process and dispose of the IPR goods in one of the ways detailed in
Notice 221 Section 15 ie the throughput period. Note: for certain agricultural goods restricted periods apply.

...........................................................................................

14 Simplified procedures

(A) To use simplified import or export entry procedures with IPR they must be approved and included in your IPR
authorisation.

Do you intend to use CFSP to enter goods to IPR yes no

(See Notice 760)
(If 'yes' attach a copy of your CFSP application or authorisation. If an agent will enter goods on your behalf attach a copy of
their CFSP authorisation).

Do you intend to use simplified export procedures yes no

(See Notice 276)
(If 'yes' attach a copy of your simplified export application or authorisation. If an agent will enter goods on your behalf attach a
copy of their simplified export authorisation).

(B) Indicate if you want to use any of the following procedures:

Inventory system (Notice 221 paragraph 3.2)

Aggregated INF 5's (Notice 221 paragraph 13.11)

Simplified accounting (first in/first out) (Notice 221 paragraph 15.1)

Process durum wheat into pasta (USA exports only) - (Notice 221 paragraph 15.6)

Commissary stores (Notice 221 paragraph 15.18)

Tray type meals (intra EC flights/cross channel ferries) (Notice 221 paragraph 15.19)

Simplified suspension returns (Notice 221 paragraph 16.2)

Simplified calculation of compensatory interest (Notice 221 paragraph 17.3)

Simplifications for aircraft/satellite construction/repair (Notice 221 Section 18)

Simplifications for processing IPR goods in a customs warehouse or Free Zone

(Notice 221 Section 19)

Continental Shelf (Notice 221 Section 20))

Tax free shopping scheme (Notice 221 Section 21)

Scotch Whisky scheme (Notice 221 Section 22)

C&E 810 Page 5 PT (June 2002)

90

15 Transfer procedures (if you intend to transfer goods to, or receive goods from other authorisation holders, indicate
the suggested method of transfer - see Notice 221 Section 12).

use the C&E 811 procedure (UK only)

use the simplified C&E 811 procedure (UK only)
use commercial documents (UK only)
use full Community Transit procedures to transfer another Member State
use a 3 copy SAD to transfer goods to another Member State 1
use a 2 copy SAD to transfer goods to another Member State 1
use commercial documents to transfer goods to another Member State 1
use commercial documents / INF 7 procures to transfer drawback goods to (an) other authorisation holder in
another Member State (repayment claim to be submitted in the UK)
use commercial documents / INF 7 procures to transfer drawback goods to an authorisation holder in
another Member State (repayment claim to be submitted in another Member State)

1 SUSPENSION GOODS ONLY

16 Additional information include any additional information you consider relevant. If you wish to apply to use any of
the simplified procedures in Box 14 enter details in this box.

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17 Application to use equivalence (see Notice 221 Section 13) details must be sufficient to enable to a comparison to
be made between these goods and the goods in Box 7.

CN code Commercial quality Technical Equivalent goods

(8 digits)
......................
......................
......................
......................
......................
......................
characteristics
................................................. ............................
................................................. ............................
................................................. ............................
................................................. ............................
................................................. ............................
................................................. ............................
at a more advanced
stage of manufacture
..............................................
..............................................
..............................................
..............................................
..............................................
..............................................

18 Prior export/import equivalence (see Notice 221 Section 13).

(a) If you plan to export EQUIVALENT free circulation goods before importing REPLACEMENT goods to IPR
(EX/IM) state the time required to enter the replacement goods to IPR
(see Notice 221 paragraph 13.9) ...........................................................................................................................

(b) If you plan to import REPLACEMENT goods to IPR before exporting EQUIVALENT free circulation goods
(IM/EX) state the time required after import to export the EQUIVALENT free circulation goods ...............................

(c) If you plan to use triangulation (INF 5 EX/IM), give the name and address of the importer of replacement goods.

...............................................................................................................................................................................

(d) If you plan to use triangulation (INF 9 IM/EX), give the name and address of the exporter of replacement goods.

...............................................................................................................................................................................

19 (suspension goods only) General release for free circulation (this provides where you release goods for use on
the Community market), for the release to be made without a customs declaration at the time of diversion.
The diversion entry can be made at a later date but may incur additional compensatory interest charges
(see paragraph Notice 221 paragraph 15.23).

yes no

20 Declaration I agree to comply with the conditions of Inward Processing relief laid down in Council Regulation (EEC)
No 2913/92 establishing the Customs Code and with Commission Regulation 2454/93 which lays down provisions for
its implementation.

Signed ..................................................... Date ...........................................................

Name ........................................................ Position .....................................................

Data Protection Act 1998

HM Customs and Excise collects information in order to administer the taxes for which it is responsible (such as VAT, insurance
premium tax, excise duties, air passenger duty, landfill tax), and for detecting and preventing crime.
Where the law permits we may also get information about you from third parties, or give information to them, for example in
order to check its accuracy, prevent or detect crime or protect public funds in other ways. These third parties may include the
police, other government departments and agencies.

C&E 810 Page 7 PT (June 2002)

92

For official use

DEFRA recommendation ...................................................... Economic Code .................................................................

Period as applied for

From to

Goods as applied for Equivalence unrestricted

except items deleted same source
except as amended except on community
Remarks produced goods

Signed ............................................................................ Department of Environment, Food and Rural Affairs

Name .............................................................................. EU International Division

Dated .............................................................................. Trade Policy Unit, Rm 415

Whitehall Place East

London SW1A 2HH

Tel: 020 7270 8171

Customs & Excise

Date application received .............................................................

Officers name: ............................................................................. Telephone number ............................................................

Authorisation is granted from ................................and applies as detailed on this form and in your authorisation letter.
Amendments to the information entered have been made as necessary. This authorisation is valid until ..........................

Issuing officer ..................................................... Supervising office address ...............................................................

...............................................................

...............................................................

...............................................................

Date of issue ..................................................................

Authorisation number IP/ .............. / .............. / ..............

Anyone who gives untrue information about goods imported under these arrangements may be liable to
penalties under the Customs and Excise Management Act 1979. This authorisation is subject to the right of the
Commissioners of Customs and Excise to vary it.

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 93

37. Evidence of export from the Community

Referred to in paragraph 15.4

37.1 What proof of export do I need?

Proof of export consists of a certified SAD copy 3 (with the correct IRP export CPC quoted on the SAD to pre-
enter the goods at export) supported by commercial documentation such as the customer’s order, contracts,
correspondence, copy export invoices, advice notes, consignment notes, packing lists, insurance and freight
charges, evidence of payment and receipt abroad.
All documents must clearly identify the exporter, the customer, the goods (including the means of
identification such as serial number or distinctive marks that shows the goods are those that were originally
imported) and the export destination.

37.2 New Export Scheme (NES)

If you are using Local Clearance Procedures (LCP) or using Simplified Declaration Procedures (SDP) at
either a Designated Export Place (DEP) or at the frontier, please see Section 52.

37.3 Photocopy export evidence

Photocopy certificates of shipment are not acceptable as evidence of export, nor are photocopy bills of lading
or photocopy airway bills. Authenticated photocopies may be used as supporting documents in certain
circumstances, see paragraph 37.5.

37.4 Lost or mislaid export evidence

If you have lost or mislaid the evidence of export supplied by the shippers or forwarders, replacements should
be clearly marked
"DUPLICATE EVIDENCE OF EXPORT"
and authenticated by an official of the issuing company.

37.5 Commercial certificate of shipment

Packers and consolidators involved in road, rail and sea groupage consignments, usually produce
commercial certificates of shipment when they themselves receive only a single authenticated transport
document from the carrier.
It is an important financial document which must be sent to the exporter as soon as the goods have been
exported from the UK. The certificate of shipment must be an original and contain the following information:
· name and address of issuing company;
· unique reference number or issuer’s file reference;
· name of the exporter;
· place, port or airport of loading;
· place, port or airport of shipment;
· name of export vessel or the aircraft flight prefix and number;
· date of sailing or flight;
· customer’s name, destination of goods;
· bill of lading or airway bill number;
· identifying number of the vehicle, container or railway wagon if used;
· full description of the goods exported - including quantity, weight and value;
· number of packages; and
· exporter’s invoice number and date, if known.
An official of the issuing company must authenticate the certificate of shipment. If it is computer produced as
a by-product of the issuing company’s accounting system, separate authentication is not normally required.
94

37.6 Sea/Air freight

If you export by sea you should keep one of the copies of the shipped bill of lading or sea waybill (certifying
actual shipment) or, where a shipping company does not issue these, a certificate of shipment given by a
responsible official of that company. If you export by air you should obtain a copy of the authenticated Master
or House Airwaybill endorsed with the flight prefix and number, and the date and place of departure.

37.7 Exports by road via a "roll-on, roll-off" ferry

You should ensure that the person in charge of the road vehicle informs the ferry operator about the goods,
obtains commercial evidence of shipment and sends this evidence to you.

37.8 Groupage or consolidation transactions

If you use a freight forwarder small parcels may be aggregated (often coming from several consignors) into
one consignment, known as a groupage or consolidation transaction. For such consignments, the forwarder
is usually shown as the consignor in the shipping documents. The freight forwarder must keep copies of the
original bill of lading or airwaybill, and pass on to you details of the export. Certificates of shipment will be
issued by freight forwarders, supported by an authenticated photocopy of the original bill of lading or a house
airwaybill.

37.9 Postal exports

In most cases, the Post Office will give you a certificate of posting when you hand the goods over for posting.
Alternatively, you can obtain a Post Office certificate on Form C&E 132.

37.10 Merchandise in baggage

If you export goods in baggage or in a private motor vehicle, copy 2 and copy 3 of Form C88 (SAD) must be
presented to the Merchandise in Baggage (MiB) officer at the place of export from the EC for certification of
shipment on the reverse of copy 3. Copy 3 will be handed back to you as evidence of export for retention in
your records.

37.11 Ships’ stores and bunkers or aircraft stores, equipment etc

Instead of Form C 88 (SAD), the owner, master, commander or duly authorised agent of the ship or aircraft
must write on the order for the goods that the vessel is entitled to receive duty-free stores. You must get a
stamped receipt for the goods stating that the vessel is entitled to receive duty-free stores. Keep it with your
records.
· Armed forces of non-EC Countries based in the EC: as the goods are not actually exported outside
the Community a stamped receipt from the base is sufficient evidence to discharge IPR (see
paragraph 15.4).
· Export in diplomatic bags: an official written undertaking, signed and stamped by a competent
Foreign and Commonwealth official, stating goods have been re-exported outside the EC should be
obtained.
· Exports by courier and fast parcel services: many companies offer a certified delivery service. A
copy of the certificate of delivery to a destination outside the EC is acceptable as evidence of export.
· Sales to diplomats: a receipt on the headed notepaper of the Embassy, Consulate etc or bearing an
official stamp is sufficient evidence to discharge IPR.
 95

38. C&E 811 procedure

Referred to in paragraphs 12.9 and 12.12

38.1 Movement of Form C&E811, (except suspension to drawback movements)

Customer Supplier
(a) Completes part A and sends all 4 copies to (b) Completes part B and:
the supplier
(i) retains copy 1
(ii) sends copy 2 to their supervising office
(iii) sends copies 3 and 4 to the customer
(c) Retains copies 3 and 4 and issues a commercial (d) retains commercial receipt in their records
receipt

Note: transfers of drawback goods to drawback traders should be made on a duty inclusive basis.

38.2 Transfers from a suspension trader to a drawback trader are treated as below:

Customer (Drawback) Supplier (Suspension)

(a) Completes part A and sends all 4 copies to the
supplier
(c) Retains copy 3 to support any drawback claim
and issues a commercial receipt
(b) Completes part B and:
(i) retains copy 1.
(ii) sends copy 2 to their supervising office.
(iii) sends copies 3 and 4 with the correct duty
and interest payment to the Collector’s Office
or EPU
(iv) on return of copy 3 from Collector’s Office or
EPU sends it to the customer
(d) retains commercial receipt in their records

Note: Transfers of suspension goods to drawback traders should be made inclusive of duty and
compensatory interest.
96

39. Transfer SAD - boxes to be completed where goods are transferred between authorisation
holders
Referred to in paragraph, 12.1, 12.5 and 15.9b
The following information must be given in the boxes indicated:
Box Information required
2 Consignor/Exporter - Give name and address of the first holder, the name and address of their
supervising office, IPR authorisation number followed by "GB"
3 Forms - If continuation sheets are used, indicate in the first sub-division the order number of the
set of forms and in the second sub-division the total number of sets of forms used. Where the
declaration relates to a single item, Box 3 is to be left blank and "1" entered in Box 5.
5 Items - State the total number of items declared on all the forms and continuation sheets used.
The number of items must correspond to the number of "description of the goods" boxes (Box 31)
completed.
8 Consignee - Give name and address of the second holder, the address where the goods are to be
processed, the name and address of their supervising office, their IPR authorisation number and
the Member State of issue.
15 Country of despatch - State Member State from which the goods are despatched.
31 Packages and description of goods - Enter the marks, (identifying) numbers, quantity and kind
of packages, or, in the case of unpackaged goods, the number of such goods covered by the
declaration or the indication "in bulk", as appropriate, plus details needed to identify them. The
goods should be described using their usual commercial description, in sufficient to detail to allow
the goods to be identified. Where a container is used, the identification mark of the container
number is also to be indicated in this box.
32 Item number - State the number of the item in relation to the total number of items declared on the
SAD and continuation sheets. Where the declaration relates to a single item, this box may be left
blank, "1" having been entered in Box 5.
33 Commodity code - Enter the CN code for the item in question
35 Gross mass - Where necessary, state the gross mass in kilograms of the goods described in the
corresponding box 31. The gross mass is the aggregate mass of the goods with all their packing,
excluding containers and other transport equipment.
38 Net mass - State the net mass in kilograms of goods described in Box 31. The net mass is the
mass of goods without packaging.
41 Supplementary units - Where necessary show the quantity in terms of units laid down in Tariff.
44 Additional information, documents produced, certificates and authorisations - Enter the date
of the first entry to IPR and "TRANSFER" in capital letters followed by "IP/S goods".
If the import goods are subject to specific commercial policy measures and when these measures
are still to be applied at the moment of transfer, enter the words "Commercial Policy"
47 Calculation of taxes - Enter The tax base (value, weight or other)
54 Place and date, signature and name of the declarant or representative - Enter the hand-
written signature of the person named in Box 2 followed by their name and position in company.
On copy 5 delete the Southend address as the office of return and amend to the address of the
consignors supervising office".
For further details see the Tariff, Volume 3, Part 2.
 97

40. Form INF 7 (completion notes)

Referred to in paragraph 12.18
If you receive drawback goods from another Member State (that have not been subject to a repayment claim)
your supplier will be unable to submit a repayment claim until you enter the goods to a customs procedure
permitting repayment to be made. You will need to complete an INF 7 (original +2 copies). Complete boxes 1
- 12 as follows:
Box Information required
1 Enter the name and address of the IPR drawback authorisation holder supplying the goods
2 Enter your name and address
3 Enter your supervising offices address
4 Enter your IPR authorisation number.
Note: (if you are authorised for IPR drawback you will need to be approved to enter the goods you
receive to one of the customs procedures identified in Box 9)
5 Enter the IPR drawback authorisation number and the supervising office address for the holder
named in Box 1
7 Enter the description of the goods that were transferred to you
8 Enter the quantity of goods indicated in Box 7
9 Enter the customs procedure that you are placing the goods under ie export or placing goods with a
view to export under Community transit T1 procedure, customs warehousing, IPR suspension, TI
relief or Free Zone including reference to the declaration(s)/documents used to assign them
11 Enter the description of the goods entered to the customs procedure described in Box 9
12 Enter the quantity of goods indicated in Box 11

Present the INF 7 (original + 2 copies) to the Customs office accepting your declaration. The Customs office
accepting the declaration will endorse the INF 7 and return the original and copy 1. Return the original
endorsed copy to your supplier in order for them to submit a repayment claim to their supervising office.
98

41. Form INF 5 Triangulation

Referred to in paragraphs 13.11 and 13.12
If you are the exporter: You must hold a C&E 810 authorisation which includes use of triangulation (EX/IM).
The C&E 810 Box 17 must show the goods you export, which must be in free circulation. Box 18(c) must
show the name and address of the importer of the replacement goods. The import goods at Box 7 of the
C&E810 must be the same as the goods you export or be contained in the goods you export or used in the
manufacture of the goods you export. The rate of yield agreed on your authorisation for the quantity of goods
you are exporting, determines the quantity of import goods at Boxes 4 - 6 of the INF 5 on which you can claim
duty relief.
Complete Form INF 5 as follows:
Box Information required
1 Enter your name and address. Include GB.
2 Enter the name and address of the importer of the replacement goods. Include country of import.
3 Enter your IPR authorisation number. The place of issue is the town in which the supervising office
which issued your authorisation is situated.
4 Enter the description of the goods to be imported (this should correspond with the description
stated in your authorisation)
5 Commodity code of the goods to be imported

6 quantity of the goods to be imported if it is planned to import the goods in successive

consignments, separate forms should be used.
7 Enter the address of the supervising office which issued your authorisation and include "GB".
8 Enter the address of the Customs office where the import goods will be presented including the
Member State.
Exporter of equivalent goods: Present the INF 5 (original and 3 copies) at the office of export, with the
export declaration Form C88 (SAD) quoting in Box 37 CPC 31 51 02. The export office, if satisfied, will certify
Box 9 of the INF 5. If the export office is also the office of exit from the Customs territory of the Community,
Box 10 will also be certified.
The export office will retain INF 5 Copy 3 and return the original and Copies 1 and 2 to you. If the export
office is not also the office of exit from the Community, the original and Copies 2 and 3 must travel with the
goods for Box 10 to be certified at the office of exit. When Boxes 9 and 10 are both certified, send the original
and Copies 1 and 2 to the importer named in Box 2 of the INF 5.
Importer of replacement goods: Present the original and Copies 1 and 2 with the import entry, quote in box
37 of the C88 (SAD) CPC 51 00 02. If you are importing more than the quantity shown on the INF 5, the
balance must be entered to free circulation or another relief which may include normal IPR if you are
authorised.
 99

42. Form INF 9 Triangulation

Referred to in paragraph 13.16
If you are the importer: You must hold a C&E 810 authorisation which includes triangulation (IM/EX). When
you import goods to IPR they can be released to free circulation without payment of duty. At the time of entry
you must complete form INF 9 with details of the goods entered and details of the person (named in box
18(d) of your C&E 810), who will be exporting equivalent free circulation goods or exporting goods
incorporating equivalent free circulation goods. The rate of yield agreed on your authorisation for the quantity
of goods you import determines the quantity of goods which must be exported in order to claim relief.
Complete Boxes 1 - 10 of Form INF9 as follows:
Box Information required
1 Enter your name and address, include "GB".
2 Enter the name and address of the person named on your authorisation to export equivalent free
circulation compensating products
3 Enter your IPR authorisation number, the place of issue (ie the town here your supervising office is
situated) and the expiry date of your authorisation
4 Enter the description of the import goods (this should correspond to the description stated in your
authorisation)
5 Enter the CN code of the goods indicated in Box 4
6 Enter the quantity of goods indicated in Box 4.
7 Enter the description of the compensating products that will be produced from the goods indicated
in Box 4 (this should correspond with the description stated in your authorisation).
8 Enter the CN code of the compensating products indicated in Box 7.
9 Enter the address of your supervising office and include "GB".
10 Enter the address of the office where the compensating products in Box 7 will be presented for
export including the Member State.
Importer present the INF 9 (original and 3 copies) at the office of import together with your IPR suspension
import declaration on Form C88 (SAD). The import office, if satisfied, will certify Box 11. The import office will
send copy 3 to your supervising office and return the original and copies I and 2. These should be sent to the
exporter you have named in Box 18(d) of your C&E 810.
Exporter present the original and copies 1 and 2 (sent to you by the authorisation holder) with your export
declaration. Quote in box 37 of the C88 (SAD) CPC 31 51 02. If satisfied the office of export will complete
Boxes 12, 13 and 14 of the INF 9. The office of export will retain copy 1, return copy 2 to the supervising
office named in Box 7 and return the original to you. Return the original to the authorisation holder named in
Box 1 of the INF 9.
100

43. Completing the SAD where IPR suspension or goods previously entered to suspension are
diverted to the Community market
Referred to in paragraphs 15.23 and 17.5
Completed the C88 (SAD) - Boxes 33, 34, 37, 38, 44, 46 and 47 with the following information:
· value of goods diverted;
· amount of duty;
· amount of VAT;
· amount of compensatory interest;
· commodity code;
· quantity;
· country of origin;
· CPC 40 51 00 (or 40 54 00 if goods were entered to IPR suspension in another Member State); and
· your IPR authorisation number.
You must not use blanket commodity codes or show the country of origin as "various"
Note: The commodity code and quantity must refer to the goods at the time of their first entry to IPR in the EC
and not to the goods in their processed state. If the goods were originally entered to IPR in another Member
State, then the appropriate information will be given on Form INF 1.
There is no need for a separate diversion entry for each individual importation involved. However a separate
continuation sheets section (Boxes 31 - 46) must be used for each different commodity code and country of
origin. You only need to fill in one calculation of taxes section (Box 47) on each C88. This may be in a
skeleton format with worksheet(s) attached.
 101

44. Examples of IPR duty calculations

Referred to in paragraphs 3.6, 3.12, 11.1, 11.2 and 15.27
If you have secondary compensating products (by-products) and they are classified in a tariff heading to
which a reduced rate of duty applies (own rates), you may have the option of paying duty/levy on them at
their own rate of duty. This special "own rate" arrangement can sometimes prove a cheaper option, provided
the secondary compensating product (by-product) is not liable to specific customs duties (formerly CAP
charges).

44.1 Quantity method for compensating products

Where only one kind of compensating product is produced from the operation, the amount of duty is
calculated by reference to the quantity of imported goods used to produce the product eg:
Quantity of import goods (A) = 100 kg
Compensating product (B) produced = 90 kg
Quantity of product (B) diverted = 20 kg

Quantity of product (B) diverted 20 kg x 100 kg = 22.22 kg (A)

Total quantity of product (B) produced 90 kg

Duty you pay/do not reclaim is: 22.22/100 x duty suspended/paid

44.2 Quantity method for import goods

Where more than one compensating product is produced and all elements of the import goods are found in
each product. The amount of duty is calculated by reference to the quantity of imported goods used to
produce each product.
(a) (own rates do not apply): Using your rate of yield, establish the quantity of import goods in each
compensating product (including secondary compensating products) eg:
Import goods 100 kg (A)
Compensating products:
MCP (B) - 80 kg contains 80 kg (A)
MCP (C) - 10 kg contains 10 kg (A)
SCP (D) - 5 kg contains 5 kg (A)
Total 95 kg (A)

(b) Calculate for each compensating product the amount of import goods as a percentage of the total
amount of import goods used eg
(B): 80/95 x 100 kg = 84.21 kg (A)
(C): 10/95 x 100 kg = 10.53 kg (A)
(D): 5/95 x 100 kg = 5.26 kg (A)
Total 100 kg (A)
102

(c) Where a customs debt is incurred in respect of a compensating product express the debt for that
product in terms of the amount of import goods in that proportion of compensating product:
Quantity (B) diverted
= 10 kg
Quantity (C) diverted
= 5.26 kg
Debt in respect of (B)
= 10/80 x 84.21 kg = 10.53 kg (A)
Debt in respect of (D)
= 5/5 x 5.26 kg = 5.26 kg (A)
Total 15.79 kg (A)
(d) If own rates are not applicable the amount of duty you pay (suspension goods) or not reclaim
(drawback goods) will be the total amount of compensating products (expressed as an amount of
import goods that have not discharge IPR) as a proportion of the total amount of import goods and
total duty suspended or paid:
Duty you pay/do not reclaim is: 15.79 x duty suspended/ paid
100
(e) (own rate applicable) - if an own rate can be applied, you will need to determine the percentage of
import goods that have been exported. This percentage is applied to the amount of SCP to which
an own rate can apply and the resulting amount then expressed in terms of the quantity of import
goods. The amount of duty you will pay or not reclaim will be the value of the SCP that is eligible at
the own rate plus any amounts determined under points (a) - (e) above:
EG: Quantity of
(B) diverted = 10/80 x 84.21kg = 10.53 kg (A)

Quantity of products exported in kg (A):

(B): 70 kg = 70/80 x 84.21 = 73.68 kg (A)
(C): 10 kg = 10/10 x 10.53 = 10.53 kg (A)
Proportion of (A) exported = 84.21 x 100 = 88.89%
100 - 5.26

Amount of (D) to which an own rate can apply = 88.89% x 5 kg = 4.44 kg (D)
Amount of (D) to which an own is not eligible = 5 kg - 4.4 kg = 0.56 kg (D)
Amount of (A) in (D) that own does not apply = 0.56 x 5.26 = 0.59 kg (A)
5 - 0.59

(f) The amount of duty you will pay or not reclaim will be the value of the SCP that is eligible at the
own rate plus any amounts determined under point (c) and (d) above eg:
value of 4.4kg (D) x own rate + (0.59 kg (A)+10.53 kg (A) x duty suspended/paid
100 kg (A)

44.3 Value method

Where methods (1) and (2) do not apply the quantity of import goods used to manufacture each
compensating product is determined by the ratio between the value of each product to that of the total value
of all products produced. However, you may if agreed and for the purposes of simplification, use the quantity
method for import goods instead of the value method where either method would give similar results.
(a) Using your rate of yield, establish the quantity and value of each compensating product produced
(including secondary compensating products) eg:
Quantity of Import goods (A) = 100 kg
Quantity and value of compensating products
MCP (B) 80 kg at £20/kg = £1600
MCP (C) 10 kg at £12/kg = £120
 103

SCP (D) 5 kg at £5/kg = £25 (appears on the own rate

list)
Total £1745
(b) By value, calculate for each compensating product the proportion of import goods in each
compensating product eg:

Proportion of (A) kg in compensating products:

(B): 1600/1745 x 100 kg = 91.69 kg
(C): 120/1745 x 100 kg = 6.88 kg
(D): 25/1745 x 100 kg = 1.43 kg
Total 100 kg

(c) Where a customs debt is incurred in respect of a compensating product express the debt for that
product in terms of the amount of import goods in that proportion of compensating product eg:
Quantity of (B) diverted = 10 kg
Quantity of (D) diverted = 5 kg
The quantity of import goods (A) contained in the MCP (B) diverted (own rate not available)
10/80 x 1.96 kg = 11.46 (A)

(d) Where a customs debt is incurred in respect of a SCP eligible to be charged at an own rate the
value of the SCP diverted needs to be deducted from the total value of all the products produced.
Determine the value of the compensating products exported as a percentage total value of
products produced eg:
Value of exported proportion of compensating products:
MCP (B):
70 x £20 = £1400
MCP (C):
10 x £12 = £ 120
Total £1520
Percentage exported = £1520 x 100 % = 88.37%
£1745 - £25
The proportion of SCP (D) eligible to be charged at an own rate allowed in direct proportion to MCPs
exported - in this example
88.37% x (D) 5 kg = 4.42 kg (D)
The proportion of SCP (D) that is not eligible to be charged at the own rate is
5 kg - 4.42 kg = 0.58 kg (D).
The proportion of import goods (A) contained in SCP (D) that is not eligible is therefore:
0.58 5 x (from (ii) above) 1.43 kg = 0.17 kg (A)
kg
(e) The amount of duty you will pay or not reclaim will be the value of the SCP that is eligible at the
own rate plus any amounts of import goods (A) determined under point (c) and (d) above eg:
value of SCP (D) 4.42kg x own rate + (0.17 kg (A)+ 11.46 x duty suspended/ paid
kg (A)
100 kg (A)

44.4 Example duty calculation using standard rates of yield

(a)
(a) Imported goods: 90 tonnes of US common wheat Commodity Code 11010000
Value, £27,000

(b) Compensating products: Common wheat flour of an ash content not exceeding 0.52%
104

Bran

Sharps

(c) Suspended import charges (per tonne) (rates shown are examples only)

Duty (nil rate) = £0.00

Specific customs duty = £133.00
Charges per Tonne = £133.00
Total charges suspended on 90 = 90 x 133.00 = £11970.00
Tonnes

(b) Products produced and their value (values shown are examples only)
Product Actual Quantity using Unit value per Value of product
quantity standard rate of yield tonne £ (tonnes)
obtained

(a) Wheat flour 67 (90 x 73.00%) = 65.70 x 300 = £19710.00

(b) Bran 17.96 (90 x 22.50) = 20.25 x 65 = £1316.25

(c) Sharps 3.25 (90 x 2.50%) = 2.25 x 65 = £146.25

The actual quantities obtained are ignored in the above calculation but also see (d) below.
(c) Duty charges

The bran and sharps are sold in the Community

The duty you pay is:

Value of products not exported (ie bran and sharps) x Suspended duty 4(i) (c)
total value of products obtained (ie wheat flour, bran and sharps)

£1316.25 + £146.25 = £1462.50 x 11,970 = £826.83

£21172.50
(d) Diversion entry to free circulation

The diversion entry must show the amounts using the standard rate of yield eg 20.25 tonnes of
bran and 2.25 tonnes of sharps even though 17.96 and 3.25 tonnes respectively of each product
were actually obtained.

Only 65.70 tonnes of wheat flour needs to be supported by export documents. The excess of
wheat flour obtained can be disposed of without submitting any declaration or paying any duty.
 105

45. Examples of interest calculations

Referred to in paragraph 17.2

45.1 Example 1
Electric motors imported under IPR suspension for assembly of washing machines. Rate of yield = 1:1
8/4/99: 1000 motors imported
Duty suspended = £1000
19/8/99: 510 washing machines (containing 510 motors) diverted to the community market.
Diversion entry (C88) should be presented for 510 motors:
CPC 40 51 00
Duty £510
VAT 17.5% £89.25
Interest @ 10% per annum from 1/5/99 to 31/8/99 (4 months):
£510 x 10/100 x 4/12 = £17

45.2 Example 2
Integrated circuits (ICs) and resistors imported under IPR suspension for TV assembly. Rates of yield = ICs
10:1, resistors 20:1
1/8/99: 1000 ICs imported, Duty suspended = £1000

15/9/99: 5000 resistors imported, Duty suspended = £250

28/9/99: 48 TVs (containing 480 ICs and 960 resistors) transferred to an IPR drawback trader Transfer
document C&E 811 presented:
Duty on ICs £480

Interest @ 10% per annum chargeable from 1/9/99 to 30/9/99

(1 month) = £480 x 10/100 x 1/12 = £4.00
No interest is chargeable on this diversion as the total interest due is below the de minimus of €20 (see
paragraph 17.6).
Duty on resistors = £48. No interest is chargeable on the diversion of resistors as the charging period is less
than one month
106

46. Application to be authorised to use simplified procedures to declare goods despatched to or

returned from the Continental Shelf
Referred to in paragraph 20.3
Applicants should provide the following information by letter:
(a) Company name and address.
(b) List of premises where goods are despatched to or received from the Continental Shelf.
(c) Type of goods despatched/received.
(d) Office(s) where records are kept.
(e) Description of those records, including confirmation that they will include (as appropriate)
· a reference number which will tie in with commercial documents and stock/financial records;
· the nature of the goods;
· their customs status (despatches);
· the premises from which despatched/where received;
· the platforms/workpoints of destination or despatch;
· for returned goods, the duty relief claimed; and
· date of entry in the records.
(f) Arrangements for notifying Customs.
Either how it is proposed to notify Customs of individual despatches and receipts or an application
that Customs waive the requirement to notify, with an indication as to why this would be appropriate.
(g) Undertaking to provide monthly supplementary declarations not later than the end of the following
month. Please indicate the name and status of the authorised signatory/signatories.
(h) The name and telephone number of a contact should we need to discuss the application.
 107

47. Continental Shelf authorised operator: supplementary declaration

Referred to in paragraph 20.3
Authorisation number ........................................................................
Name and address ............................................................................
...........................................................................................................
...........................................................................................................
I declare that all goods moved to or from the Continental Shelf during the month
of............................................................. have been accounted for in one of the following ways:
1 All imports and exports of excise and CAP goods (other than where CAP scheduling has been
authorised), imports of third country goods entering the EC for the first time and imports of goods on which
VAT or any other customs charge is payable, have been declared to Customs using full entry procedures
or equivalent simplified procedures.
2 Other despatches to continental shelf installations have been entered in our records as required by our
authorisation.
3 Duty relief is claimed on all other returned goods, which have been entered in our records as eligible for:
*I) Inward Processing Relief;
*ii) End Use relief;
*iii) Returned Goods Relief;
*iv) Other (specify) .....................................................................
Signature .................................... Status ........................................
Name .................................................................................................
Date ...................................................................................................
*Delete where appropriate
Warning. There are heavy penalties for making a false declaration or a false claim to Customs. If you are
aware of irregularities you should notify your local Customs and Excise office immediately.
108

48. Regulation Articles

Referred to in paragraph 1.9
(The following list is our view of which Articles cover certain aspects of IPR, it is not a comprehensive listing)
Subject Commission Regulation (EEC) Council Regulation (EEC) No
No 2454/93 Article 2913/92 Article

Aircraft construction/repair 544(c)

Amendment of entry 251
Application for authorisation 497 - 500, Annex 67
Authorisation -amendment to 505(c) 85 - 86a, 116, 117
Authorisation -application for 497 - 499, Annex 67
Authorisation -effective date of 507
Authorisation -granting of 537, 539
Authorisation -period of 507
Authorisation -renewal of 505(c)
Authorisation -refusal of 506
Authorisation -retrospective 508
Authorisation -simplified 499
Authorisation -single 501
Authorisation -throughput period 542 118
Calculation of duty due 118 121, 122
Compensatory interest 519
Compensating products 496(k)(l) 114(2)(d)
Catalysts 538 114(2)
Customs procedure codes Annex 38
Customs territories (EC) 3
Definitions 4, 114(2)
Definition - accounts 496(i)
Definition - arrangements 496(a) 89, 128
Definition - authorisation 496(b)
Definition - holder 496(d)
Definition - Job processing 536(b)
Definition - main compensating 496(k)
product
Definition - office of discharge 496(g)
Definition - office of entry 496(f)
Definition - period of discharge 496(m)
(throughput period)
Definition - prior export equivalence 536(a)
Definition - records 496(j)
 109

Subject Commission Regulation (EEC) Council Regulation (EEC) No

No 2454/93 Article 2913/92 Article
Definition - secondary compensating 496(i)
products
Definition - single authorisation 496(c)
Definition - supervising office 496(e)
Definition - triangulation 496(h)
Discharge of IPR 520, 544 89, 128
Drawback claim 521
Drawback exclusions 124, 126
Economic conditions/test 502 - 504, 539, Annex 70, Annex 73
Entry to IPR 516, 536
Equivalence 541, Annex 74 114(2)(e), 115
Euro rate 18
Identification of goods 540
IP in customs warehouse 535
INF forms 523(2), Annex 71
Own rates 548(1), Annex 75
Prior export equivalence 538 115((1)(a), 118(3)
Production accessories 114(2)(c) 4th indent
Postal imports (IPR) 235, 237
Quantity method 518(2)
Quantitative restrictions (drawback) 124
Rate of yield 517 114(2)(f),119
(standard rates) Annex 69
Records 515, 516
Reduced duty rates (by-products) 548(1), Annex 75 122
Security 88
Sensitive goods Annex 70
Suspension return 521
Temporary export under OPR 123
Throughput period 542 118
Transfers 511 - 514, Annex 68 89(2)
Usual forms of handling 531, Annex 72
Value method 518(3) 90, 91(3), 97
110

49. Simplified procedures

Referred to in paragraphs 1.8 and 2.3
Simplified procedures are available for:
Accounting Inventory system, paragraph 3.2
First in/first out (FIFO), paragraph 15.1

Transfers Simplified C&E 811, paragraph 12.1

Using commercial documents, paragraph 12.12
2 copy SAD for EC transfers, paragraph 12.15a

Discharge Supplies to armed forces paragraph 15.14

Supplies to Embassies/Consulates paragraph 15.16
Commissary Stores paragraph 15.18
Tray type meals for EC flights/cross channel ferries, paragraph
15.19
Aviation fuel used for non EC flights, paragraph 15.20
Aircraft spare part depots (ASPD), paragraph 15.21

Equivalence Aggregated INF 5s, paragraph 13.11

Suspension returns Paragraph 16.1

Compensatory interest Calculating interest, paragraph 17.2 and 17.3

Aircraft/satellite construction or repair Section 18

Processing goods in a customs Section 19

warehouse

Continental Shelf Section 20

Tax Free Shopping Section 21

Scotch Whisky Scheme Section 22

 111

50. The New export system (NES)

50.1 What is NES?

NES is an electronic system that enables exporters to send us their export documentation electronically. NES
consists of two procedures; “normal” procedures and simplified procedures.
The normal procedures consist of a full declaration on a SAD (C88) to be made either at the UK frontier, at an
Inland Clearance Depot, at a Designated Export Place (DEP) or at your premises.
There are two types of simplified procedure; both require authorisation by customs before they can be used:
· Simplified Declaration Procedure (SDP) which can be used at an ICD, a DEP or at the UK frontier;
· Local Clearance Procedure (LCP) which can only be used at an approved inland location e.g an IPR
authorisation holders premises.
When using SDP/LCP, you (or your agent) sends us electronically, a pre-shipment advice (PSA) containing a
minimum of information. If this is accepted, a permission to proceed message (P2P) is sent to you. This
allows you to progress to the UK frontier and to export the goods. Acceptance of the PSA constitutes entry to
the export procedure and, in most cases discharges IPR which, together with the P2P, will be your evidence
of discharge of IPR.
A more detailed supplementary declaration is made within 14 days of the date of the PSA.
Following export, a departure message is issued which confirms your goods have left. In some
circumstances, this message will be your evidence of disposal of your IPR goods.
Full details of the NES procedures can be found in Notice 276 The new export system.

50.2 Are there any restrictions on the use of IPR in conjunction with NES?
Yes. Any goods that were entered to IPR using the simplified authorisation procedures (Form C101) are not
allowed to use LCP or SDP; the full declaration procedures must be used.
In addition, any IPR goods that are being exported together with goods upon which an export refund is to be
claimed cannot enter the export procedure using SDP at a DEP or at the UK frontier. In such cases, LCP with
a full declaration (plus a transit declaration) may be used although no supplementary declaration is required.

50.3 Do l have to amend my IPR authorisation in order to use NES?

Yes. First of all you have to obtain an authorisation to use LCP/SDP. This is done by contacting the NAS and
requesting Form C&E 42. Alternatively, you can use an agent who has NES authorisation. Once this has
been done, you must write to your supervising office and ask for your IPR authorisation to be amended to
include the use of the simplified procedures or, where applicable, details of the agent and their NES
authorisation. Where SDP at a DEP is to be used, your IPR authorisation should show details of the DEP.
Your authorisation does not need to be amended if you intend to use the full declaration procedure at the
frontier.

50.4 What CPCs do l have to use to enter the export procedure using SDP/LCP?
There are new IPR CPCs that have to be used on the pre shipment advice (PSA) in order to enter goods to
the export procedure. Details can be found in paragraph 29.14.

50.5 Once my goods are in the export procedure, how do l move my goods to the frontier?
Section 51 gives details on the various options available to you.

50.6 What information must l put on the PSA?

The following details must be included on PSAs raised in respect of IPR goods:
Box... Information required...
2 Exporter/consignor (TURN only)
8 Consignee
14 Declarant or representative of the exporter/consignor (if different from Box 2)
17a Country of destination
30 Location of goods
112

31 Packages and description of goods; marks and numbers; container numbers; number
and kind
33 Commodity code
37 CPC
38 Net mass
44 Additional information; documents produced; certificates and authorisation; level of
representation; UCR; DoTI licensing indicator; IPR authorisation number

50.7 Do l still have to pre-enter my goods at export?

Yes. This requirement will be met by the submission of the PSA in the case of SDP/LCP.

50.8 How do l prove that l have disposed of my IPR goods correctly?

It all depends on whether or not you enter the export procedure inland or at the frontier and how you moved
the goods to the frontier. The following list details the forms of evidence you will need to provide
Method of export Evidence required
Direct export using inland clearance Suspension goods:
(LCP/SDP at a DEP)
PSA and P2P
Drawback goods:
evidence of entry to the transit procedure
Indirect export using inland clearance Suspension goods:
(LCP or SDP at a DEP)
PSA and P2P
Drawback goods:
evidence of entry to the transit procedure
Direct export using the arrangements Departure message plus SAD Copy 3 equivalent
Indirect export using the arrangements Stamped SAD Copy 3 from Member State of export;
or
SDP PSA and P2P; or
evidence of entry to the transit procedures
Direct export using CT Evidence of entry to CT
Indirect export using CT Evidence of entry to CT
Full declaration procedure See Section 37

50.9 What do l do if l want to use SDP/LCP but cannot provide all the information required on the
PSA?
If you are having difficulties complying with the requirements, you should contact your supervising office
immediately, telling them precisely what problems you are having. In most instances, they will be able to
agree an interim solution with you that can be used until the required changes have been made to your
systems that will enable you to comply.

50.10 Can l use NES to send IPR goods to the Channel Islands?
The movement of inward processing goods to the Channel Islands and other special territories of the EC
listed in paragraph 25.2 does not, in itself discharge customs duty liability as it does not constitute an export
from the customs territory of the EC. NES can, therefore, only be used if the movement to the Channel
Islands or other special territory of the EC is part of an indirect export from the EC.
For VAT only relief under inward processing, the VAT liability will be discharged as the Channel Islands and
other special territories are outside the fiscal territory of the EC. Discharge of these procedures will take place
when you receive the P2P.
 113

51. Options for the movement of goods for export under NES LCP/SDP, full declarations and IPR
arrangements
This section explains how you can move your IPR goods before and after their entry to the export
procedures. It also explains the guarantee requirements.

51.1 Movement of goods under CT

All IPR goods entered to the export procedures under SDP/LCP at an inland location, must travel to the UK
office of exit under Community Transit (CT). In addition, any goods entered to the export procedure at a UK
office of exit for indirect export must move to the EC office of exit under CT.

51.2 Guarantee requirements

All goods listed in section 35 moving under the IPR arrangements are liable to a movement guarantee. These
guarantee requirements remain unaffected by the implementation of NES. See paragraph 12.2.
Where goods previously required to hold a movement guarantee are entered to the export procedures inland
under LCP or SDP at a DEP, the goods must also be entered to the CT procedures (see paragraph 51.1). In
such cases, the CT guarantee will reflect the level of guarantee taken under the IPR arrangements.
All remaining IPR goods (including drawback goods) entered to the export procedures inland under LCP or
SDP at a DEP will be subject to the normal CT guarantee/waiver procedures.

51.3 Export of IPR goods using inland clearance

51.3.1 Direct export using inland clearance – LCP or SDP at a DEP or full declaration
1. Pre-shipment advice (PSA) sent
2. Permission to progress (P2P) received *
3. Entry to CT – either by the trader acting as an Authorised Consignor or at the local office of
departure as per JCCC paper (02)25 **
4. Entry made in records
5. Goods move
6. Goods arrive at UK office of exit. Arrival message sent to CHIEF
7. Goods exported
8. Departure message sent to CHIEF by carrier or representative
9. Supplementary declaration 14 days after departure from the UK **
* IPR suspension discharged
** Not required if a full declaration is made inland
Note: A simplified authorisation holder cannot use the NES simplified procedures

51.3.2 Indirect export using inland clearance - LCP or SDP at a DEP or full declaration
1 Pre-shipment advice (PSA) sent
2 Permission to progress (P2P) received*
3 Entry to CT – either by the trader acting as an Authorised Consignor or at the local office of
departure as per JCCC paper (02)25**
4 Entry made in records
5 Goods move
6 Arrival at the EC office of exit
7 Goods exported from the EC
* IPR suspension discharged
** IPR drawback discharged
114

51.4 Export of IPR goods using the arrangements

51.4.1 Goods move from the authorisation holder’s premises to the office of exit under the arrangements –
direct export
1. Goods arrive at the UK office of exit
*
2. Goods entered to the export procedure under SDP or full declaration
**
3. Goods exported
4. Departure message sent to CHIEF by carrier or representative
5. If SDP used, supplementary declaration is required 14 days after departure from the UK
* SDP alternative not available to simplified authorisation holders
** Entry into records made and IPR duty liability discharged

51.4.2 Goods move from the authorisation holder’s premises to the office of exit under the arrangements –
indirect export via EC office of exit
1. Goods arrive at EC office of exit
2. Goods entered to the export procedure of the EC Member State
3. Goods exported from the EC*
* Entry into records made and IPR duty liability discharged

51.4.3 Goods move from the authorisation holder’s premises to the office of exit under the arrangements –
indirect export via UK office of exit
1. Goods arrive at the UK office of departure
2. Goods entered to the export procedure under SDP* or full declaration
3. Goods entered to CT
4. Goods proceed to the EC office of exit
5. Goods exported from the EC**
6. If SDP used, supplementary declaration is required 14 days after departure from the UK
* SDP alternative is not available to simplified authorisation holders
** Entry into records made and IPR duty liability discharged

51.5 Export of IPR goods using Community transit

51.5.1 Direct export

1. Entry to CT – either by the trader acting as an authorised consignor or at the local office of
departure as per JCCC paper (02)25*
2. Entry made in traders commercial records
3. Goods move
4. Goods arrive at the UK office of exit
5. CT movement completed. Goods entered to the export procedure under SDP* or full declaration
procedure
6. Goods exported
7. Departure message sent to CHIEF by carrier or representative
8. If SDP used, supplementary declaration is required 14 days after departure from the UK
* All IPR duty liabilities discharged
** SDP alternative is not available to simplified authorisation holders
 115

51.5.2 Indirect export

1. Entry to CT – either by the trader acting as an authorised consignor or at the local office of departure
as per JCCC paper (02)25*
2. Entry made in traders commercial records
3. Goods move
4. Goods arrive at the EC office of exit
5. CT movement completed and goods enter the export procedure in the EC Member State of Exit
6. Goods exported from the EC
* All IPR duty liability discharged
116

52. Cultural Goods

Referred to in paragraph 24.4

Council Regulation 3911/92 details cultural goods that require an export licence.
 117

53. Appeals

53.1 Procedure for appealing against a Customs decision

There is an independent appeals mechanism for most Excise and Customs decisions. This involves a two-
stage process. The first stage is an independent Departmental review by Customs and Excise. The second
stage if required, provides for an appeal to an independent VAT and duties tribunal. The following time limits
apply:
You have 45 days from the date of the written notification of the decision by Customs to ask for a formal
Departmental review.
Customs then have 45 days from receipt of your letter in which to carry out the review and notify the
outcome.
If following the formal review you still wish to pursue the matter, you have 30 days to lodge your appeal with
the tribunal.
You can find full details in Notice 990 - Excise and Customs Appeals which is available from our National
Advice Service or on our Internet website at www.hmce.gov.co.uk.
118

54. Glossary of terms and abbreviations

Arrangements All goods entered to IPR are considered to be under the arrangements. This
allows the goods to move from the port to the authorisation holders
premises, between authorisation holders and from the authorisation holders
premises to the office of discharge or exit from the EC without the need for
additional customs documentation.
C88 The UK version of the Single Administrative Document (SAD) for making
import /export/transfer declarations
C101 IPR simplified application/authorisation and NIRU suspension return form
C&E 810 Application/authorisation form for IPR
C&E 811 Document used to transfer IPR goods between authorised UK traders
C&E 812 Suspension return
C&E 813 Drawback claim
C&E 825 Drawback claim issued by the NIRU
CAA Civil Aviation Authority
CAP Common Agricultural Policy
CFSP (Customs Freight Simplified Procedures) Simplified procedures for the
importation of third country goods including the simplified declaration
procedure and local clearance procedure
CHIEF Customs Handling of Import and Export Freight. The C&E declaration
processing computer system
CN code Commodity Code (Combined nomenclature) This is the term used to denote
the code (either 4 or 8 digit level), that identifies the description of individual
goods/items in the Tariff
Common Stock The storage or mixture of IPR goods with other goods that share the same
8 digit CN code, technical and physical characteristics
Compensating products All products obtained from IPR processing operations
Compensatory interest Interest charged when IPR suspension goods are diverted to free circulation
CPC Customs Procedure Code. A six digit code used on entries on import,
export and warehouse declarations, to identify the type of procedure for
which the goods are entered and from which they came. Details of CPCs
can be found in the Tariff, Volume 3. See also section 29 of this notice.
CT Community Transit
Customs approved treatment Goods placed under a customs procedure, entry to a free zone, re-
or use exportation from the EC, destruction
Customs duty An indirect tax that provides protection for Community industry raised on
imported goods. This includes duty, agricultural charges and other import
charges provided for under CAP. It does not include Excise duty or VAT
Customs procedure Release for free circulation, transit, customs warehousing, IPR, PCC, TI
relief, OPR, exportation
Customs Warehouse A system or place authorised by the Customs authority for the storage of
non-Community goods under duty and VAT suspension (see Notice 232
Customs warehousing)
DEFRA Department of Environment, Food and Rural Affairs
DEP Designated Export Place – a Customs approved trader inland premises
where goods may be declared to CHIEF using any export procedure except
LCP
Drawback Method of IPR where all charges are paid at import and reclaimed at export
 119

DTI Department of Trade and Industry

EC European Community
End Use Arrangements which allow certain imported goods to be declared for free
circulation in the Community at a reduced or nil rate of duty provided they
are put to a prescribed use under Customs control (see Notice 770
Imported goods: end-use relief)
EPU Entry Processing Unit - a Customs office where import and export entries
can be accepted
Equivalence Method of IPR which allows free circulation goods to be used in place of
IPR goods
EUR 1 A form used to obtain preferential rates of duty. Cannot be used in
conjunction with IPR for exports to any EFTA country, Israel or Faroe
Islands
Euro European Currency
Free Circulation Goods imported from outside the EC are in Free Circulation within the EC
when:
(i) all import formalities have been complied with; and
(ii) all import duties, levies and equivalent charges payable have been paid
and have not been fully or partly refunded.
Goods that originate in the Community are also in free circulation
Free Zone An designated area into which non community goods may be moved and
remain without payment of customs duty and/or VAT otherwise due at
importation (see Notice 334 Free Zones)
INF 1 Information Sheet 1 is a document used when IPR suspension goods travel
between Member States. It provides details of the goods at the time of their
(C&E 1290)
first entry to IPR in the Community. It does not replace the SAD.
INF 5 Information Sheet 5 is used with the triangulation procedure when
equivalent free circulation goods are exported before replacement goods
(C&E 1143)
are imported to IPR (EX/IM). It allows a trader to offset duty on goods
imported against the exported free circulation goods.
INF 7 Information Sheet 7 is used when IPR drawback goods are transferred to a
trader in another Member State without repayment of duty. Repayment of
(C1246)
duty can be made when the goods are entered by the receiving trader to
another suspensive procedure or are exported.
INF 9 Information Sheet 9 is used with the triangulation procedure when goods
are imported to IPR before equivalent free circulation goods are exported
(C&E 1144)
from another Member State (IM/EX). It allows a trader to offset duty on
goods imported to IPR against future exported free circulation goods.
Intra-Community Between Member States of the EC
Intrastat System of collecting statistics on trade in goods between EC countries
LCP Local Clearance Procedure – under NES, LCP replaces Local Export
Control (LEC). Traders must be authorised to use LCP
Main compensating products Compensating products, the production of which the use of IPR was
(MCP) authorised
Member State Member country of the European Community (see also section 25 of this
Notice)
NES New export scheme
OPR Outward Processing Relief - A system of duty relief that gives full or partial
relief from import duty when EC goods are exported outside the Community
for process or repair and are subsequently re-imported (see Notice 235
Outward processing relief for full details)
120

PCC Processing under Customs Control. A system of import duty relief for goods
imported or transferred from another customs regime for processing into
products on which less or no duty is payable (see Notice 237 Processing
under Customs Control)
Preference Arrangements which allow reduced or nil rates of customs duties to be
claimed on eligible goods imported from certain non community countries
PSA Pre-Shipment Advice – a general term encompassing LCP “notifications”
and SDP “incomplete declarations” sent to CHIEF under NES simplified
procedures
Rate(s) of yield The quantity of processed products made from a given quantity of imported
goods
RGR Returned Goods Relief - A system of duty relief for goods previously
exported from the EC and re-imported in the same state as at export (see
Notice 236 Importing returned goods free of duty and tax for full details)
RPA Rural payments Agency – Agency responsible for issuing certificates under
the supply balance arrangements
SAD Single Administrative Document used through out the EC for making import
and export declarations - The UK version is form C88
SDP Simplified Declaration Procedure – under NES, SDP replaces the Simplified
Clearance Procedure (SCP). Traders must be authorised to use SDP
Secondary compensating Compensating products which are a necessary by-product of a processing
products (SCP) operation other than the main compensating products
Supervising office The Customs office who are responsible for supervision of the IPR
authorisation
Suspension Method of IPR where charges suspended at import are discharged on
export or authorised disposal
T1 status Goods not in free circulation
Tariff The Integrated Tariff of the United Kingdom
TI relief Temporary Importation. Goods imported to the Community subject to
certain conditions eg exhibition etc which will be re-exported
Third Country Any country that is outside the Customs Territory of the European
Community
Triangulation Method of IPR where equivalent free circulation goods are exported from
one Member State before or after goods imported to IPR in another
Member State. The IPR goods can be released to free circulation without
payment of duty. See also INF 5 and INF 9
VAT Value Added Tax
 121

Do you have any comments?

We would be pleased to receive any comments or suggestions you may have about this notice. Please write to:

HM Customs and Excise

6th Floor South
Portcullis House
17 Victoria Avenue)
Southend on Sea
Essex SS2 6AL
Fax: (01702) 38 1962

Please note this address is not for general enquiries. You should ring our National Advice Service about those.

If you have a complaint or suggestion

If you have a complaint please try to resolve it on the spot with our officer. If you are unable to do so, or have a
suggestion about how we can improve our service, you should contact one of our Regional Complaints Units. You
will find the telephone number under ‘Customs and Excise - complaints and suggestions’ in your local telephone
book. Ask for a copy of our code of practice ‘Complaints and putting things right’ (Notice 1000). You will find
further information on our website at http://www.hmce.gov.uk.

If we are unable to resolve your complaint to your satisfaction you can ask the Adjudicator to look into it. The
Adjudicator, whose services are free, is a fair and unbiased referee whose recommendations are independent of
Customs and Excise.

You can contact the Adjudicator at:

The Adjudicator's Office

Haymarket House
28 Haymarket
LONDON
SW1Y 4SP

Phone: (020) 7930 2292

Fax: (020) 7930 2298
E-mail: adjudicators@gtnet.gov.uk
Internet: http://www.adjudicatorsoffice.gov.uk/index.htm
Notice 221 issued January 2003
Update 1 - April 2004

On 16 April 2003 the Accession Treaty to formalise the entry of

10 additional countries to join the European Union (EU) was
signed. From 1 May 2004 the total number of Member States
(MS) will rise to 25.

This update includes textual changes to reflect the new

enlarged EU from 1 May 2004, and where appropriate any
transitional arrangements.

25 List of territories inside/outside the EC for

customs duty and VAT purposes
25.1 Territories inside the EC for customs duty and
VAT purposes
Amend the list to include:
‘Cyprus, Czech Republic, Estonia, Hungary, Latvia,
Lithuania, Malta, Poland, Slovakia and Slovenia’.
List should now read:
Austria Italy
Azores Latvia
Balearic Islands Lithuania
Belgium Luxembourg
Cyprus Madeira
Czech Republic Malta
Denmark Monaco
Estonia Netherlands
Finland Poland
France Portugal
Germany Slovakia
Greece Slovenia
Hungary Spain
Republic of Ireland Sweden
Isle of Man United Kingdom
Update 2 issued January 2007
On 1 January 2007 Bulgaria and Romania will join the European Union. The total
number of Member States will rise to 27.

This update provides information on the additional countries to be included in section

25.

Amendment
25 List of territories inside/outside the EC for customs
duty and VAT purposes
25.1 Territories inside the EC for customs duty and VAT purposes

After the list of EC states insert

‘Plus from 1 January 2007, Bulgaria and Romania’