Duty Relief procedures including the CPEI regimes

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CPEI - Customs procedures with economic impact

Duty Relief procedures can:

  • provide relief from, or delay payment of, duty and/or VAT
  • allow reduced or nil rates of duty to be applied on goods, if they are permanently or temporarily imported under specific conditions and/or imported to a specific use
  • provide relief from duty and/or VAT for goods, temporarily exported to or returned from outside the EC

When might they be of use?

Examples of where they can be used include the following:

  • temporarily imported goods for use, process, or repair within the EC
  • re-imported goods, either returning unaltered after use outside the EC, or having been processed or repaired outside the EC
  • rejected imports, when the goods are returned to a supplier outside the EC because they are damaged or are not to the required specification
  • re-imported goods returned by a customer outside the EC because they are damaged or are not to the required specification
  • imported goods to be used for scientific, educational, medical, cultural, research, or trade promotion purposes
  • imported goods on which you seek delayed paying of duty and/or VAT or for which at time of import you are unable to meet certain conditions such as import licensing

There can be many different reasons why an import is made and there are various procedures to fit specific circumstances, such as:

Inward Processing Relief (IPR): Can be used to obtain duty relief on goods you import from outside the EC for processing and re-export from the EC. Processing can be anything from repacking or sorting goods to the most complicated manufacturing.

Outward Processing Relief (OPR): Allows you to export Community goods, for processing or for repair. The processing work can range from the very simple through to involved manufacturing. On re-import to the EC you will only have to account for duty on the value added to the goods by the processing outside the EC.

Rejected Imports: Can be used to obtain repayment or remission of import charges on imported goods which you reject as not being in accordance with contract or defective.

Returned Goods Relief (RGR): If you import goods, which were previously exported from the customs union (the EC, Turkey, San Marino and Andorra), then RGR could be of use. The goods must be re-imported in the same condition as at export from the customs union, with no processing having been done on them outside the union apart from routine maintenance or unforeseen running repairs.

Community System of Duty Reliefs (CSDR): Subject to varying conditions, CSDR provides a range of reliefs from import duty on goods imported for specific purposes. In some cases, there are parallel reliefs for VAT and Excise Duty.

Your organisation may benefit if it is:

  • providing educational, scientific, medical or cultural services eg as a museum, laboratory, hospital or charity
  • involved in the testing of goods for information or commercial research
  • importing commercial samples for the purposes of soliciting orders for the goods represented

As an individual, you may also benefit from relief if you are importing:

  • personal belongings (including private motor vehicles) on transfer of residence
  • goods inherited on the death of another individual
  • specialised goods for the disabled
  • private gifts
  • awards or decorations conferred on you

Temporary Importation Relief (TI): can be used to temporarily import goods with total or partial relief from duty. Goods must not be processed or repaired other than routine maintenance necessary to preserve them in the condition in which they were imported. There are several different TI reliefs, eg:

  • goods for an exhibition
  • goods for test (but not to destruction), experiment or demonstration
  • samples to show prospective buyers
  • animals for training/breeding/veterinary treatment or competitions
  • means of road, rail, air, sea or inland waterway transport
  • containers and pallets

(This list is not exhaustive).

ATA Carnets: can be used for temporary importation and exportation. An ATA carnet is a book of vouchers that replaces the normal Customs documentation at the time of importation and exportation. The ATA carnet system is operated worldwide under the ATA and Istanbul Conventions. Security to cover potential import duties is lodged in the country of issue. In the UK ATA carnets are issued by Chambers of Commerce and Industry. For further information:

The London Chamber of Commerce and Industry
Export Documents - Carnets
33 Queen Street
London
EC4R 1AP

Tel: +44 (0) 20 7203 1855
Fax: +44 (0) 20 7489 0391

Email: aallan@londonchamber.co.uk

Customs Warehousing: storage procedure whereby the payment of import duty and/or VAT can be delayed when non-Community goods are stored in a defined location or under an inventory system authorised as a Customs warehouse.

End Use Relief: provides relief from duty to promote certain EC industries and trades. To qualify for relief the following must apply:

  • goods and/or processes must be eligible for end-use
  • you must be authorised for the relief
  • goods must be put to prescribed end-use within agreed time limits

You can find out whether the goods you import are eligible for relief by reference to the relevant footnotes in the Tariff.

Free Zones: Free zones are designated areas where payment of duty and VAT can be delayed provided goods are not released to free circulation or used or consumed within the free zone. UK free zones are controlled principally on the basis of the requirements of the customs warehousing procedures.

Processing under Customs Control (PCC): PCC allows certain raw materials or components to be imported under duty suspension for processing and subsequent release to free circulation in the EC.

You may find PCC of benefit if the duty rate or your finished products is lower than the duty rate on the raw materials you import. However your application may need to pass an economic test before you can use PCC.

For all other types of process you will need to apply for an authorisation on Form C&E 1321. You will be issued with an authorisation number which must be quoted on all import documents.

If your goods do not fall within Part A of the Annex your application will also be subjected to an economic test. No authorisation can be issued until the test has been concluded by the DTI/DEFRA.

If your goods fall within Part B of the Annex, this test will be carried out by DEFRA and/or the relevant section of the Customs Code Committee in Brussels.

For further information and advice

IPR: Notice 221

OPR: Notice 235

RGR: Notice 3 (for personal imports) and Notice 236 (for commercial imports)

Rejected Imports: Notice 266

CSDR: Notice 3 (for personal imports) and various Notices in the 300 series

Customs Warehousing: Notice 232

End Use: Notice 770

Free Zones: Notice 334

PCC: Notice 237

ATA Carnets: Notice 104

Temporary Importation:

Notice 200

Notice 306

Notice 308

Notice 28

If you require any further assistance you can contact the Helpline on Tel 0300 200 3700.

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