Update to Customs Special Procedures – Compliance note

HMRC has updated and released the Customs Special Procedures Manual on 27th November covering goods that cannot be declared under IP authorisation by declaration.

The updated guidance provides that IP (Inward Processing) with an authorisation by declaration cannot be used for the following Economic Codes 01, 05, 06, 07, 08 or 12. These codes would be given on the HMRC authorization issued to a company importing to Inward Processing duty suspension methods.

This is a change to the information published in Annex D of Notice 3001: Customs Special Procedures for the Union Customs Code and may affect imports to Inward Processing with those codes given on the authorization. There has been no advice from HMRC whether authorisations would be updated to reflect this change, therefore it is for the importer to ensure that the manual is referenced as part of their due diligence process.

Further details are given below for affected codes, with links to the regulations and website which should be consulted to ensure compliance.

Economic Code 1 - The processing of goods not listed in Annex 71-02* (sensitive goods and products).

Economic Code 5 - The placing of goods under IP within the limits of the quantity determined on the basis of a supply balance in accordance with Article 18 of Council Regulation (EU) No 510/2014 (relating to certain goods resulting from the processing of agricultural products.

Economic Code 12 - The processing of goods obtained under a previous authorisation, the issuing of which was subject to an examination of the economic conditions.

The processing of goods, which are listed in Annex 71-02 in any of the following situations -

Economic Code 6 - * unavailability of goods produced in the Union sharing the same 8-digit Combined Nomenclature (CN) code, the same commercial quality and technical characteristics as the goods intended to be imported for the processing operations envisaged.

Economic Code 7 - * differences in price between goods produced in the Union and those intended to be imported, where comparable goods cannot be used because their price would not make the proposed commercial operation economically viable.

Economic Code 8 - * contractual obligations where comparable goods do not conform to the contractual requirements of the third country purchaser of the processed products, or where in accordance with the contract, the processed products must be obtained from the goods intended to be placed under IP in order to comply with provisions concerning the protection of industrial or commercial property rights

https://www.gov.uk/hmrc-internal-manuals/customs-special-procedures/spe13075
https://www.gov.uk/hmrc-internal-manuals/customs-special-procedures

Regulation: Regulation 2015/2446 supplementing Regulation (EU) No 952/2013 of the European Parliament and of the Council as regards detailed rules concerning certain provisions of the Union Customs Code – *Annex 71-02

Regulation (EU) No 510/2014 can be found here: https://op.europa.eu/en/publication-detail/-/publication/47e26105-dff0-11e3-8cd4-01aa75ed71a1/language-en

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