Notices Made Under the Customs (Special Procedures and Outward Processing) (EU Exit)

Regulations 2018

This document provides the notices that, with effect from the 2 January 2019, are made under The
Customs (Special Procedures) (EU Exit) Regulations 2018. These notices cover matters that are
relevant to application and authorisation to use the Authorised Use, Inward Processing, Outward
Processing and Temporary Admission procedures. They are listed in the numerical order of the
regulations that provide the relevant notice making powers.

Establishment Rules
With regard to the establishment requirements for the Authorised Use and Inward Processing
procedures:
The following text has force of law by virtue of Regulation 9(2)(c) of the Customs (Special
Procedures and Outward Processing) (EU Exit) Regulations 2018.
Authorisation to declare goods for an Inward Processing or an Authorised Use procedure can
be granted to a person who is not established in the United Kingdom where the goods are
not part of a series of goods imported by the applicant and, in the opinion of an HMRC
officer:
 The goods are non-commercial goods or personal gifts, or the declaration of
the goods for the procedure is incidental to any business carried on by the
declarant; or,
 The declaration of the goods for the procedure will have no economic effect
in the United Kingdom.

Economic Conditions
With regard to the economic conditions for the Inward Processing procedure:
The following paragraphs have the force of law, by virtue of Regulations 20(1) and 20(2)(b)
of The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018.

1. The cases of a description specified for the purposes of Regulation 20(1) of The Customs
(Special Procedures and Outward Processing) (EU Exit) Regulations 2018 are:
(a) Where the calculation of the amount of import duty is made in accordance with
regulation 23 of the The Customs (Special Procedures and Outward Processing) (EU
Exit) Regulations 2018 and both of the conditions below apply:
 HMRC is aware of evidence that the essential interests of producers of goods in
the United Kingdom would be adversely affected by an authorisation to declare
the goods for an inward processing procedure;
 The operation to be carried out is not of a type at paragraph (2)(a) to (f) below.
(b) Where the calculation of the amount of import duty is not made in accordance with
Regulation 23 of the The Customs (Special Procedures and Outward Processing) (EU
Exit) Regulations 2018 and both of the conditions below apply.
 If the goods to be declared for an inward processing procedure were declared
for the free-circulation procedure:
i. the goods would be subject to a non-tariff trade policy measure, an
agricultural policy measure or an additional amount of import duty
 by virtue of section 13, 14 or 15 of the Taxation(Cross-border Trade)
Act 2018; or
ii. the importer of the goods would be required to give a guarantee
under paragraph 15(5) of Schedule 4 to that Act.
 The operation to be carried out is not of a type at paragraph (2)(h), (i),(m),(p) or
(s) below.
(c) Where the calculation of the amount of import duty is not made in accordance with
regulation 23 of The Customs (Special Procedures and Outward Processing) (EU Exit)
Regulations 2018 and all of the conditions below apply:
 If the goods to be declared for an inward processing procedure were declared
for the free-circulation procedure:
i. the goods would not be subject to a non-tariff trade policy measure,
an agricultural policy measure or an additional amount of import
duty by virtue of section 13, 14 or 15 of the Taxation(Cross-border
Trade) Act 2018; or
ii. the importer of the goods would not be required to give a guarantee
under paragraph 15(5) of Schedule 4 to that Act.
 HMRC is aware of evidence that the essential interests of producers of goods in
the United Kingdom would be adversely affected by an authorisation to declare
the goods for an inward processing procedure.
 The operation to be carried out is not of a type at paragraph (2)(g) to (s) below.

2. The operations specified for the purposes of Regulation 20(2)(b) of the Customs (Special
Procedures and Outward Processing)(EU Exit) Regulations 2018 are:
(a) The processing of goods that are not sensitive goods;
(b) Repair;
(c) The processing of goods directly or indirectly put at the disposal of the applicant to
declare goods for an inward processing procedure, carried out according to
specifications on behalf of a person established outside the United Kingdom,
generally against payment of processing costs alone;
(d) The processing of durum wheat into pasta;
(e) The declaration of goods for an inward processing procedure within the limits of
the quantity determined on the basis of a balance in accordance with Article 18 or
Regulation (EU) 510/2015;
(f) The processing of sensitive goods in any of the following situations:
 unavailability of goods produced in the United Kingdom sharing the same
classification code, the same commercial quality and technical
characteristics as the goods intended to be imported for the processing
operations envisaged;
 differences in price between goods produced in the United Kingdom and
those intended to be imported, where comparable goods cannot be used
because their price would not make the proposed commercial operation
economically viable;
 contractual obligations where comparable goods do not conform to the
contractual requirements of the non-United Kingdom purchaser of the
processed products, or where, in accordance with the contract, the
processed products must be obtained from the goods intended to be
declared for an inward processing procedure, in order to comply with
 provisions concerning the protection of industrial or commercial property
rights;
 the aggregate value of goods to be declared for an inward processing
procedure, by the applicant for authorisation, in that calendar year, for each
classification code, does not exceed £135,000.
(g) The processing of goods to ensure their compliance with technical requirements for
their release for the free-circulation procedure;
(h) The processing of non-commercial goods or personal gifts;
(i) The processing of goods resulting from processing under a previous authorisation,
the application for which was a case -
 in relation to which an examination of the available evidence was
required for the purposes of regulation 20(1)(a) of the Customs (Special
Procedures and Outward Processing)(EU Exit) Regulations 2018; or
 in relation to which an examination of the economic conditions was
required for the purposes of Article 211(4) (b) of the UCC.
(j) The processing of solid and fluid fractions of palm oil, coconut oil, fluid fractions of
coconut oil, palm kernel oil, fluid fractions of palm kernel oil, babassu oil or castor
oil into products which are not destined for the food sector;
(k) The processing of goods into products to be incorporated in or used for civil aircraft
for which an airworthiness certificate has been issued;
(l) The processing into products benefitting from relief provided under section 19 of
the Taxation (Cross-border Trade) Act for weapons and military equipment;
(m) The processing of goods into samples;
(n) The processing of any electronic type of components, parts, assemblies or any
other materials into information technology products;
(o) The processing of goods falling within classification codes 2707 or 2710 into
products falling within classification codes 2707, 2710 or 2902;
(p) The reduction to waste and scrap, destruction, recovery of parts or components;
(q) Denaturing;
(r) An operation constituting usual forms of handling of goods as specified in a notice
published by HMRC;
(s) The aggregate value of goods to be declared for an inward processing procedure,
by the applicant for authorisation, in that calendar year, for each classification
code, does not exceed -:
 in the case of sensitive goods, £135,000;
 in all other cases £270,000,
except where, if the goods to be declared for an inward processing procedure were
declared for the free-circulation procedure:
i. the goods would not be subject to a non-tariff trade policy measure,
an agricultural policy measure or an additional amount of import
duty by virtue of section 13, 14 or 15 of the Taxation(Cross-border
Trade) Act 2018: or
ii. the importer of the goods would not be required to give a guarantee
under paragraph 15(5) of Schedule 4 to that Act.
Record Keeping
With regard to keeping records in relation to the operation of the Outward Processing procedure or
a Special Procedure:

This following paragraphs have the force of law, by virtue of Regulation 44(3) of The
Customs (Special Procedures and Outward Processing) (EU Exit) Regulation 2018.
1. The records to be kept and preserved are those which are appropriate to the
operation and discharge of the following procedures:
 a storage procedure, under which goods can be kept in a premises approved
by HMRC (customs warehouse);
 an inward or outward processing procedure;
 an authorised use procedure; or
 a temporary admission procedure.

2. Records to be kept and preserved should contain information and particulars which
will enable the control of the procedure by HMRC, including the identification of
goods, whether goods are domestic or chargeable and details of any movements of
goods.

3. So far as appropriate to the relevant person, the records to be kept and preserved
must include the following:
 Details of any authorisation under which the goods have been declared for
the relevant procedure;
 A Master Reference Number (MRN) issued by HMRC or, where it does not
exist, any other number or code identifying the Customs declaration of
goods for the procedure;
 Information about the manner in which the procedure was discharged;
 Data that unequivocally allows the identification of documents, other than
Customs declarations, which are relevant to the declaration of goods for the
procedure;
 Data that unequivocally allows the identification of documents relevant to
the discharge of the procedure;
 Particulars of marks, identifying numbers, number and kind of packages, the
quantity and usual commercial or technical description of the goods and,
where relevant, the identification marks of the container necessary to
identify the goods;
 The location of goods and information about any movement thereof;
 Whether the goods are domestic or chargeable;
 Particulars of any usual forms of handling and, where applicable, the new
classification code resulting from that operation;
 Particulars of temporary admission or authorised use;
 Particulars of inward processing or outward processing including
information about the nature of the processing or the subjection of the
goods to a supplementary form operation;
  The costs for storage or any operations constituting usual forms of handling
of goods;
 Where appropriate, the rate of yield, approved quantity of goods resulting
from processing and the approved methodology used;
 Particulars enabling customs control of the use of equivalent goods;
 Where accounting segregation is required, information about type of goods
including domestic or chargeable status, whether they are equivalent goods
and, where appropriate, the origin of the goods;
 Where appropriate, particulars of any transfer of rights and obligations;
 Where the records are not part of the main accounts for customs purposes,
a reference to those main accounts;
 Any additional information for special cases, as requested by HMRC for
justified reasons.

4. A person subject to the requirements of these paragraphs shall update a record at

the time when any information that is to be kept and preserved under these
paragraphs is first known to them, or as soon as possible thereafter.

However, where goods declared for a storage procedure are moved from a customs
warehouse in order to be exported, records shall be updated to provide information
about the export of the goods:
 within 100 days of the goods being removed from the customs
warehouse; or
 within such longer period agreed with HMRC.

5. Records may be kept and preserved in any form sufficient to enable any HMRC
officer to control the procedure and to enable the person subject to these
requirements to demonstrate that the conditions and requirements of the
procedure have been satisfied.

6. Records must be kept and preserved for a minimum of three years unless elsewhere
specified.

7. HMRC may waive any of the requirements set out above in particular cases.

8. In the case of temporary admission, records shall be kept only if a person is notified
of this requirement by HMRC.

9. An authorised economic operator is deemed to comply with the requirements set

out in these paragraphs insofar as their records in relation to the relevant procedure
are, in the opinion of an HMRC officer, appropriate.

10.These paragraphs apply in addition to any requirements for the keeping and
preservation of accounts and records by customs traders that are set out elsewhere.
Equivalent Goods

With regard to the importation of equivalent goods for the Inward Processing procedure:

The following paragraphs have the force of law, by virtue of Regulation 45(6) of The
Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018.

Special provisions concerning equivalent goods

An equivalent goods authorisation in relation to the declaration of goods for an inward

processing procedure is subject to the conditions set out below in relation to the identified
goods.

Reference below to goods that are imported are to imported goods as set out at paragraph
23(1) of Schedule 2 to the Taxation (Cross-border Trade) Act 2018. References to goods that
are domestic are to equivalent domestic goods as defined at paragraph 23(2) of that
Schedule.

(1) Rice
Rice classified under classification code 1006 shall not be equivalent goods unless it falls
within the same classification code as the imported goods. Nevertheless, for rice with a
length not exceeding 6.0 mm and a length to width ratio equal to or more than 3:1 and for
rice with a length equal to or less than 5.2 mm and a length/width ratio equal to or more
than 2:1 equivalence shall be established by determination of the length to width ratio only.
The measurement of the grains shall be done in accordance with Annex I Part II to
Regulation 1308/2013.

(2) Wheat
Equivalent goods may be used only between wheat harvested outside the United Kingdom
and discharged from the free-circulation procedure in the United Kingdom and imported
wheat of the same classification code, having the same commercial quality and the same
technical characteristics.
However, the use of equivalent goods is permitted between domestic and imported durum
wheat, provided it is for the production of pasta falling within classification codes 1902 11 00
and 1902 19.

(3) Sugar
The use of equivalent goods is permitted between imported raw cane sugar (classification
codes 1701 13 90 and/or 1701 14 90) and sugar beet (classification code 1212 91 80) under
the condition that processed goods falling within classification code 1701 99 10 (white
sugar) are obtained.
The equivalent quantity of raw cane sugar of standard quality as defined in point III of Part B
of Annex III to Regulation (EU) No 1308/2013 shall be calculated by multiplying the quantity
of white sugar by the coefficient 1.0869565.
The equivalent quantity of raw cane sugar not of standard quality shall be calculated by
multiplying the quantity of white sugar with a coefficient obtained by dividing 100 by the
yield of raw cane sugar. The yield of raw cane sugar shall be calculated as set out in point III
of Part B of Annex IIĪ to Regulation (EU) No 1308/2013.
(4) Live animals and meat
Equivalent goods may not be used for live animals or meat.

(5) Maize
The use of equivalent goods between domestic and imported maize is possible only in the
following cases and subject to the following conditions:
 In the case of maize for use in animal feed, the use of equivalent goods is possible
provided that a customs control system is set up to ensure that the imported maize
is in fact used for processing into animal feed;
 In the case of maize used in the manufacture of starch and starch products, the use
of equivalent goods is possible between all varieties with the exception of maizes
rich in amylopectin (wax-like maize or ‘waxy’ maize) which are only equivalent
between themselves;
 In the case of maize used in the manufacture of meal products, the use of equivalent
goods is possible between all varieties with the exception of maizes of the vitreous
type (‘Plata’ maize of the ‘Duro’ type, ‘Flint’ maize) which are only equivalent
between themselves.

(6) Olive oil

A. Use of equivalent goods is permitted only in the following cases and under the
following conditions:

1. Virgin olive oil:

(a) between domestic extra virgin olive oil falling within classification
code 1509 10 90 which corresponds to the description in Point 1(a)
of Part VIII of Annex VII to Regulation (EU) No 1308/2013 and
imported extra virgin olive oil of the same classification code,
provided that the processing operation produces extra virgin olive
oil falling within the same classification code and satisfying the
requirements of the said Point 1(a);
(b) between domestic virgin olive oil falling within classification code
1509 10 90 which corresponds to the description in Point 1(b) of the
Part VIII of Annex VII to Regulation (EU) No 1308/2013 and
imported virgin olive oil of the same classification code, provided
that the processing operation produces virgin olive oil falling within
the same classification code and satisfying the requirements of the
said Point 1(b);
(c) between domestic lampante virgin olive oil falling within
classification code 1509 10 10 which corresponds to the description
in Point 1(c) of the Part VIII of Annex VII to Regulation (EU) No
1308/2013 and imported lampante virgin olive oil of the same
classification code, provided that the processed goods are:
 refined olive oil falling within classification code
1509 90 00 which corresponds to the
description in Point 2 of Part VIII of the above
mentioned Annex VII; or
 olive oil falling within classification code
1509 90 00 which corresponds to the
description in Point 3 of Part VIII of the said
 Annex VII and is obtained by blending with
domestic virgin olive oil falling within
classification code 1509 10 90.

2. Olive-pomace oil:

Between domestic unrefined olive-pomace oil falling within classification code

1510 00 10 which corresponds to the description in Point 4 of Part VIII of Annex
VII to Regulation (EC) No 1234/2007 and imported unrefined olive-pomace oil of
the same classification code, provided that the olive-pomace oil processed
goods falling within classification code 1510 00 90 and corresponding to the
description in Point 6 of Part VIII of the said Annex VII is obtained by blending
with domestic virgin olive oil falling within classification code 1509 10 90.

B. The blendings referred to in Point A.1(c) second indent and Point A.2, with imported virgin
olive oil, used in an identical manner, are authorised only where the arrangements for the
control of the procedure are organised in a manner that makes it possible to identify the
proportion of imported virgin olive oil in the total quantity of blended oil exported.

C. The processed goods must be put into immediate packaging of 220 litres or less. By way of
derogation, in the case of agreed containers of 20 tonnes maximum, HMRC will allow the
exportation of the oils found in the preceding points on condition that there is systematic
control of the quality and quantity of the exported goods.

D. Equivalence shall be checked by using commercial records to verify the quantity of oils
used for blending and, for the purpose of verifying the quality concerned, by comparing the
technical characteristics of samples of the imported oil taken when it was declared for an
inward processing procedure with the technical characteristics of the samples of the
domestic oil used taken when the processed goods concerned were processed against the
technical characteristics of the samples taken at the time of actual exportation of the
processed goods. Samples shall be taken in accordance with international standards EN ISO
5555 (sampling) and EN ISO 661 (sending of samples to laboratories and preparation of
samples for tests). The analysis shall be carried out with reference to the parameters in
Annex I to Commission Regulation (EEC) No 2568/91.

(7) Milk and milk products

Use of equivalent goods is permitted under the following conditions:
 The weight of each component of milk dry matter, milk fat matter and milk protein of the
imported goods shall not exceed the weight of each of these components in the domestic
goods.
However, where the economic value of the goods intended to be declared for an inward processing
procedure is determined by only one or two of the above mentioned components, the weight may
be calculated on the basis of this or these component(s). An authorisation for the use of equivalent
goods shall specify the details, notably the reference period for which the total weight has to be
calculated. This reference period will not exceed 4 months.
The weight of the relevant component(s) of the goods intended to be declared for an inward
processing procedure and of the equivalent goods shall be indicated in the relevant customs
declarations and required supporting documentation, to enable HMRC to control the equivalence on
the basis of those elements.