HMRC starter pack guide to import and export

Guide to Importing & Exporting

Breaking down the Barriers

Version 28 – October 2010 1

H M Revenue & customs welcome you to the:

New importers and exporters starter pack

Contents

*denotes new or updated information in this version of the pack

(i) Introduction
Who is this publication aimed at? 6
HM Revenue & Customs (HMRC) 6
UK Border Agency (UKBA) 7
Border Force (BF) Officers 7
The National Clearance Hub (NCH) 8
Regional Business Education and Support Teams (BESTs) 8
Why would I come into contact with HM Revenue & Customs and the UK Border
Agency? 8
Can I use an Agent to act on my behalf? 8
What is an Import? 9
What is an Export? 9
Countries of the EU 9
Why do I need to be aware of this? 9
How to use this Pack? 10
* VAT, Excise and Customs Helpline 10
* Tariff Classification Service 10
Notices 10
Acknowledgements 10

(ii) A Guide To Import Procedures
* The Tariff 11
UK Trade Tariff 12
Why are HM Revenue & Customs and the UK Border Agency interested in my
goods? 12
The Single Administrative Document (SAD) – C88 12
Import Declaration 12
Can I use an Agent to make an import declaration on my behalf? 12
What is Economic Operator Registration Identification (EORI)? 13
* Structure of the EORI number 13
* How to obtain an EORI number in the UK 13
How quickly will I be notified of my EORI number? 14
* What is the Commodity Code? 14
What is the Customs Procedure Code (CPC)? 15
Payment of Import Duty and VAT 15
What is the Import Value? 15
How do I determine the customs value of my goods? 15
Valuation Declarations 15
Rates of Exchange 16
What documentation will I have when I import? 16
What is temporary storage? 16
How does temporary storage work? 16
What do I need to do to be authorised as a temporary storage operator? 17
What is meant by “Customs Control”? 18
What is a Deferment Account and how does it work? 18
What are Preferential Rates of Duty? 19


What are Customs Freight Simplified Procedures (CFSP)? 19
What are Single Authorisation for Simplified Procedures (SASP)? 19
Can I personally bring commercial goods, purchased outside the UK,
back with me? 20
Authorised Economic Operator (AEO) 20
Further Information 21
Business Link Website 21
An example of a completed C88 form 22
Am I likely to need an import licence or permit? 24
What are Common Agricultural Policy (CAP) Licences? 24
How will I know if I need a CAP licence? 24
What are Department for Business, Innovation and Skills (BIS) Licences? 24
What are Department for the Environment, Food & Rural Affairs (DEFRA)
Documents? 25
When will I need a Department for Environment, Food & Rural Affairs (DEFRA)
Document? 25
Aflatoxins 26
When will I need a Forestry Commission Inspection Document? 27
When will I need a European Commission Licence? 27
What are Health & Safety Executive (HSE) controls? 27
When will I need an Office of Communications (Ofcom) Licence? 28
What are Environment Agency controls? 28
When will I need a Kimberley certificate? 28
When will I need a Catch Document? 29
When will I need an Office for Civil Nuclear Security (OCNS) Licence? 29
Offensive Weapons 29
* Realistic Imitation Firearms (RIFs) 31
What are Tariff Quotas? 32
Who imposes Tariff Quotas? 32
Will I be involved in Tariff Quotas? 32
How do I request a share of the Quota? 32
What happens to my request? 33
Where can I get further advice? 33
What are Import Preferences? 34
What are the Import Preference Schemes? 34
What is meant by the “origin” of the product / goods? 35
Roles and Responsibilities 35
What if my goods are not transported directly to the UK? 35
Can certificates be obtained retrospectively or replacements obtained? 35
What happens if I cannot get a certificate in time? 35
Can I claim a preference for every import? 36
What if the quota is used up? 36

(iii) A Guide To Export Procedures
* The Tariff 37
UK Trade Tariff 38
Why are HM Revenue & Customs and the UK Border Agency interested in my
goods? 38
Export Declaration 38
What happens if I use an Agent to make an export declaration on my behalf? 38
* What is Economic Operator Registration Identification (EORI)? 39
* Structure of the EORI number 39
* How to obtain an EORI number in the UK 39
* How quickly will I be notified of my EORI number? 40
How do I make an export declaration? 40


National Export System (NES) Export Declarations 40
What are Single Authorisation for Simplified Procedures (SASP)? 40
When are the declarations made? 41
How is an export declaration made? 41
What details need to be declared? 42
Declaration Unique Consignment Reference (DUCR) 42
WCO Recommendation for DUCR 42
* What is a Commodity Code? 43
* What is a Customs Procedure Code (CPC)? 43
Are there any export taxes? 44
What if my goods don’t go directly from the UK to outside the EU? 44
* Can I personally take goods directly to the customer? 45
Do I have to keep any documents? 45
Authorised Economic Operator (AEO) 45
Business Link Website 46
Am I likely to need an export license? 48
How do I know if I need a licence? 48
* What types of licences are there? 48
When will I need a Kimberley certificate? 50
When will I need a Catch Document? 50
What are Export Preferences? 51
What is meant by the “origin” of the product / goods? 51
What evidence is required? 51
What happens to my EUR1 once it has been completed? 51
What if an error is made? 51
What happens if documents are lost? 52
What if a preference document is not issued at the time of export? 52
What if I act as an intermediary – obtaining goods from one party for supply to
another? 52

(iv) Transit Systems
What is Community Transit (CT)? 53
Status of the goods 53
What is the New Computerised Transit System (NCTS)? 53
Combined Community Transit / Safety and Security (S&S) Declarations 54
How can I submit NCTS declarations? 54
E-mail via EDCS 54
HM Revenue and Customs NCTS web channel 55
NCTS XML (Extensible Mark-Up Language) declaration channel 55
Location of the goods 55
What are the control procedures? 55
What is simplified transit? 56
Community Status documents 56
Transports Internationaux Routiers (TIR) 57
Procedure at the Office of Entry into the Community 58
Procedure at the Office of Destination 58

(v) An Explanation of Duty Relief Procedures
What are Duty Relief procedures? 59
When might they be of use? 59
What are the schemes? 59
What is Inward Processing Relief (IP)? 59
How does IP work? 59


Do I need to be authorised to use IP? 60
What is Outward Processing Relief (OPR)? 60
How does OPR work? 61
Do I need to be authorised to use OPR? 61
What is Returned Goods Relief (RGR)? 61
How does RGR work? 61
Do I need to be authorised to use RGR? 61
What is Temporary Admission (TA)? 62
* How does TA work? 62
Do I need to be authorised to use TA? 62
ATA Carnets 63
What is Customs Warehousing? 63
How does Customs Warehousing work? 63
Do I need to be authorised to use Customs Warehousing? 63
What is End-Use Relief? 64
How does End-Use Relief work? 64
Do I need to be authorised to use End-Use Relief? 64
What is Processing under Customs Control (PCC)? 64
How does PCC work? 64
Do I need to be authorised to use PCC? 65
* What is Free Zone? 65
* How does Free Zone work? 65
* Do I need to be authorised to use Free Zone? 65
What are Rejected Imports? 65
Do I need to be authorised to use the Rejected Imports procedure? 66
* What is the Community System of Duty Reliefs (CSDR)? 66
How does CSDR work? 66
* Do I need to be authorised to use CSDR? 66
What is Onward Supply Relief (OSR)? 67
How does OSR work? 67
Do I need to be authorised to use OSR? 67
Completion of the Import Declaration (SAD) 68
What other relief schemes are there? 68


Introduction
Section i

Who is this publication aimed at?
This information pack is for anybody, whether already in business or not, who wishes to
bring goods into the United Kingdom (UK) from outside the European Union (EU), or intends
to send goods from the UK out of the EU.

The pack has been designed to help you get started on importing and / or exporting, and to
help you better understand the procedures involved in these activities.

If you are engaged in selling products to customers based in a Non-EU Country, or you are
buying products from a supplier based in a Non-EU Country, the information in this pack will
be relevant to you. Note that certain goods need a Department for Business, Innovation and
Skills (BIS) export licence even if they are being transferred to anther EU Member State.
These goods are all listed military goods, paramilitary goods and certain dual-use goods.
See ‘Do my goods need an export licence’ for more information.

H M Revenue & Customs (HMRC)
When most people think about HMRC, they think mainly of the uniformed officers they
encounter at ports and airports and Income Tax.

VAT registered businesses may be aware of the VAT Officer, who attends business
premises to audit commercial records.

However HMRC deal with many different aspects of work, for example –

 Climate Change Levy
 Excise Duty
 Insurance Premium Tax
 Landfill Tax
 Intra-EU Movement (of goods)
 Air Passenger Duty
 Child Benefit
 Tax Credits
 Income, Corporation, Capital Gains, Inheritance, Insurance Premium,
Stamp, and Land Taxes
 Enforcement of other Government Department prohibitions and
restrictions on the movement of controlled goods and offences relating to
arms and WMD trafficking and breaches of UN and EU sanctions.

Unless you are in business in one of the specialised areas concerned, it is unlikely you will
encounter many of these.

Listed below are some of the job-titles of HMRC which you may encounter:-

 The National Clearance Hub (NCH) – The NCH is a single national site which has
replaced Entry Processing Units (EPU) previously located at all major airports /
ports.

 International Trade Assurance Officers – work from inland offices, visiting your
business premises, to check records and goods in relation to importing and
exporting.

Version 28 – October 2010 6 Section (i)
Introduction

Introduction
Section i

 VAT Assurance Officers – work from inland offices, visiting VAT registered
business premises. They are responsible for validating VAT returns by examining
business records.

 Excise Assurance Officers – work with the specific businesses involved with excise
duties – hydrocarbon oils, alcohol, tobacco, betting and gaming.

This list is by no means exhaustive; there are many other jobs within Customs, so
depending on what your business is doing you may well have contact with other Officers.

UK Border Agency (UKBA)
In 2007 the Government announced the creation of the UK Border Agency and after a year
of ‘shadow’ running, UK Border Agency became an Executive Agency of the Home Office on
1 April 2009. The UK Border Agency has taken on the majority of Customs work at the
border. In a number of areas, HMRC retains policy responsibility for border activity, and in
this regard the UK Border Agency is acting as a delivery agent for HMRC. Therefore the UK
Border Agency has the primary responsibility for clearing the movement of goods and people
across the UK border, subject to the completion of satisfactory checks as stipulated by
HMRC, and collecting relevant taxes and duties where appropriate.

HMRC is the UK Customs authority accountable for the :

 Collection / enforcement of taxes (import VAT, excise / customs duties),
 Regulation, control and facilitation of international trade
 Customs policy, procedures, systems and legislation.

Specifically HMRC has primary responsibility for processing import and export declarations
and carrying out pre and post clearance controls at the National Clearance Hub.

For the purposes of this guide the work of HMRC and the UK Border Agency is entwined
and as such the word ‘Customs’ is used to mean the work of both Departments.

Border Force (BF) Officers
If you are importing or exporting therefore, you may come into contact with Border Force
Officers at the frontier. They make sure that any goods being declared for import or export
are moving legally. If they find errors on documents where information is incomplete or
missing, or there are discrepancies between the documents and the goods, they will need to
investigate further and have any errors corrected before those goods can move.

It is perhaps an unfortunate fact that due to the volume of freight traffic at ports and airports,
Border Force Officers will not be able to deal solely with your consignment. Therefore if a
query does arise on your declaration they will not be able to halt all other inspections until
yours has been cleared. They are obliged to move on to the next set of documents which
have been presented for an import, so your consignment could be waiting until the query
found on it has been resolved.

Whilst HM Revenue & Customs and the UK Border Agency have no wish to add to the
burden that businesses bear, they are required by law to ensure that all movements of
goods are legitimate. As delays in the movement of your goods are likely to cause you and
your customers problems, we are keen to ensure that documentation is completed correctly
and therefore ease the movement of goods.

The National Clearance Hub (NCH)

Introduction

Introduction
Section i

The NCH responsibilities include the processing of :

 All import and export entries selected for further checks
 The inputting of manual import and export entries
 The inputting of manual requests for export arrival and departure loading information
 Controlling un-entered goods for inventory linked ports and airports
 Authorising and amending inventory records and removals

You can contact the NCH by phone, fax, email or letter.

Write to : FREEPOST RRBK-CGRL-RUCA Telephone : +44 (0)845 001 0085
HM Revenue & Customs Fax : + 44 (0)800 496 0699
National Clearance Hub Email : nch@hmrc.gsi.gov.uk
Custom House
Furness Quay
Salford
M50 3ZZ

Regional Business Education and Support Teams (BESTs)
Business Education and Support Teams (BESTs) can help you understand what an Officer
is looking for in your import / export declaration.

Businesses can approach the Team in their geographical area and sign-up for seminars, or
specialist workshops. Alternatively, an Assurance Officer or VAT Visiting Officer may either
suggest to you that you would benefit from inclusion in one of the options, or put your name
forward to BEST themselves.

Getting a better understanding of what Officers are looking for, can help to pre-empt some
problems, thus helping your declaration to be cleared quicker.

You can contact the BEST team in your region by phoning the VAT, Excise & Customs
Helpline on +44 (0)845 010 9000.

Why would I come into contact with HM Revenue & Customs and the UK Border
Agency?
HM Revenue & Customs is accountable for controlling imports and exports to and from the
UK, for customs purposes and on behalf of other Government Departments. All goods
imported into the UK must be declared to Customs on arrival in one form or another. HMRC
and the UK Border Agency’s involvement with exported goods starts at the time the goods
are declared for export. This could be at business premises or the Port or Airport when they
leave the country. The export cannot proceed until clearance is given by Customs. They
work with other Departments in order to speed up the clearance of your goods – otherwise
the logistics of the importer or exporter liaising with all the relevant Departments would be
difficult. If delays are to be avoided it is important to get the documents right. Errors or
discrepancies may cause delays.

Can I use an Agent to act on my behalf?
You can appoint a representative to act on your behalf. The type of representation may be
either Direct or Indirect.

Direct representatives act in the name of, and on behalf of, another person. Indirect
representatives act in their own name but on behalf of another person.

Introduction

Introduction
Section i

If you employ an agent to act as a direct representative i.e. the agent makes the customs
declaration on your behalf (as the principal) acting in your name, you are deemed to be the
declarant and therefore liable for any customs debt.

Where an agent acts as an indirect representative i.e. they make the customs declaration on
behalf of a principal in their own name they are deemed to be the declarant. In such cases
both the agent and the principal are jointly liable for any customs debt.

We strongly recommend therefore that it is in the best interests of importers / exporters to
check the accuracy of any customs declarations made on their behalf. It is good practice to
ensure that you request, receive and obtain copies of all declarations made to customs from
your nominated agent as this will help support claims for VAT zero rating and the completion
of import relief procedures.

More information on who is responsible for customs debts can be found in Section 7 of
Notice 199 Imported goods: Customs procedures and Customs debt.

What is an Import?
In this guide we use the term import to mean bringing goods into the UK from outside the
customs territory of the European Community for personal or commercial reasons.

It is important to understand the differences in the law for the treatment of imports into the
Community, as opposed to Intra European Community trade. Please be aware however that
legislation controlling the importation of goods such as firearms, offensive weapons or drugs
into the UK applies equally to goods from other EU Member States.

What is an Export?
An export is when you send goods from the UK to a destination outside the customs
territory of the European Community for any reason. Many goods – e.g. military and
paramilitary goods, radioactive sources, cultural goods and controlled drugs need a licence
to be exported from the UK regardless of their destination.

For customs purposes the term “export” generally means the movement of goods to a
destination outside of the customs territory of the European Union (EU).

Countries of the EU
At the time of going to print, the countries of the EU are:-

Austria, Belgium, Bulgaria, Republic of Cyprus, The Czech Republic, Denmark, Estonia,
Finland, France, Germany, Greece, Hungary, The Irish Republic (Eire), Italy, Latvia,
Lithuania, Luxembourg, Malta, The Netherlands, Poland, Portugal, Romania, Slovenia,
Slovakia, Spain, Sweden and The United Kingdom.

Special territories such as the Canary Islands and the Channel Islands are in the Customs
territory but are not part of the Fiscal (VAT) Territory of the EU.

Why do I need to be aware of all this?
Imports and exports are subject to various UK laws and EC Regulations. You must abide by
these "control" measures, so it is a good idea to know what you are getting involved with.
When mistakes happen, HMRC can under the terms of the laws and Regulations impose
various penalties against you, or even seize your goods.

Introduction

Introduction
Section i

This pack is designed to give you guidance to avoid some of the difficulties which can be
encountered when importing and exporting goods.

How to use this Pack?
To get the most out of this pack, we would suggest you start by reading either or both of the
major sections on Importing or Exporting. You can move onto the sections on Transit
Systems and Duty Relief Schemes if these are relevant to your business operations.

The pack is broken down into particular sections dealing with specific activities and topics
and within these are the links to other areas which could impact on your movement of
goods.

VAT, Excise and Customs Helpline
The VAT, Excise & Customs Helpline is the Department’s telephone service that deals with
all general enquiries about HMRC matters, including Value Added Tax (VAT), Customs
Duties, Insurance Premium Tax, Landfill Tax, Aggregates Levy, Air Passenger Duty, Climate
Change Levy and Mineral Oils Duties, both from businesses and the public. It is based at
two individual sites which are linked. The single contact number is +44 (0)845 010 9000.
Each call will automatically be routed to the site with the shortest call queue.

The service is open Monday to Friday from 8.00am to 8.00pm. Customers with hearing
difficulties can ring the Textphone service on +44 (0)845 000 0200.

Tariff Classification Service
An electronic version of Volume 2 of the Tariff is available via the Business Link website.
More information on this is detailed in Section ii and iii of this guide under UK Trade Tariff. If
however you are unable to find an appropriate code via the website, the Tariff Classification
Service will assist you with finding the correct commodity code for your imports / exports.
They can be contacted on +44 (0)1702 366077 between 9.00 and 17.00 Mondays –
Thursday, 9.00 and 16.30 on Fridays (except Bank Holidays). Please see the sections in this
guide on Importing and Exporting for more information on tariff classification and commodity
codes.

Notices
HMRC issues Notices (leaflets or booklets) on particular subjects. A number of Notices are
referred to throughout this publication. You can obtain copies of Notices by either contacting
the VAT, Excise & Customs Helpline on +44 (0)845 010 9000, and requesting a copy to be
sent to you in the post. You can also view Notices on our website.

Acknowledgements
HM Revenue & Customs thanks other Contributors for their valuable input to this pack.

 Department for the Environment, Food and Rural Affairs (DEFRA)
 Department for Business, Innovation and Skills (BIS)
 Rural Payments Agency (RPA)
 UK Border Agency (UKBA)

Introduction

A Guide To Import Procedures
Section ii

The Tariff
The Integrated Tariff of the United Kingdom, usually referred to as The Tariff contains all the
information to help you with Importing or Exporting. It includes references to the relevant
laws and regulations.

Although the UK version is called the “Integrated Tariff of the United Kingdom”, the same
format is used throughout the EU. Importing and exporting are covered by EC Regulations,
so regardless of the country in which you operate, the Tariff equivalent acts as a
comprehensive point of reference. Please note that all EU countries have the same
commodity codes, duty rates and procedures as the UK.

The Tariff consists of 3 volumes –

 Volume 1 contains essential background information for importers and exporters.
It covers – duty relief schemes, contact addresses for organisations such as
Department for Business, Innovation and Skills, Department of Environment,
Food and Rural Affairs and Forestry Commission. It also contains an explanation
of Excise duty, Tariff Quotas and many similar topics.

 Volume 2 contains the 16,000 or so Commodity Codes set-out on a Chapter by
Chapter basis. It lists duty rates and other directions such as import licensing and
preferential duty rates.

 Volume 3 contains a box-by-box completion guide for import and export entries –
the C88 form, the complete list of Customs Procedure Codes (CPCs) for
importing and exporting, Country / Currency Codes, lists of UK ports and airports
both alphabetically and by their legacy Entry Processing Unit (EPU) numbers,
and further general information about importing or exporting.

The Tariff is available on an annual subscription. At the time of going to print the cost is
£265. Each December, a complete Tariff for the coming year is despatched followed by
monthly amendments which replace existing pages.

If you do not wish to obtain your own copy, the Tariff is available at some larger libraries.

Whether or not you own a Tariff, it is essential that you keep up-to-date with changes in
commodity codes, rates of duty and regulations related to your products.

You can buy the Tariff in printed and CD ROM formats or subscribe to the new e-service,
from:

The Stationery Office
The Publications Centre
PO Box 29
Norwich
NR3 1GN

General enquiries and orders Telephone +44 (0)844 4777 414
Orders only Fax +44 (0)870 600 5533
Subscriptions Email subscriptions@tso.co.uk
Web site www.tsoshop.co.uk

Version 28 – October 2010 11 Section (ii)
A Guide to Import Procedures

Section ii

UK Trade Tariff
A free online version of volume 2 of the Tariff is available via the Business Link website. It
offers a browse and search facility that enables users to classify goods and quickly find
detailed information such as commodity descriptions, duty rates, Anti Dumping Duty, Quota,
VAT and excise rates, preferential agreements, government controls and explanatory notes
for any commodity in the UK Tariff. There are daily data updates from the European Union’s
TARIC database and the HMRC Customs Handling of Import and Export Freight (CHIEF)
system. There is an email alert system to let you know when anything changes within the
Tariff. Additionally the UK Trade Tariff allows you to quickly identify the relevant licences /
certificates that are applicable for each particular commodity code.

Why are HM Revenue & Customs and the UK Border Agency interested in my goods?
Customs have an interest in imports for a number of reasons. These include:-

 Correct payment of any duties and / or VAT due.
 Trade Statistics for both the UK and the EU.
 Balance Of Trade Figures for imports / exports for the United Kingdom.
 Prohibitions and restrictions set in place by UK laws and EC Regulations.

The Single Administrative Document (SAD) – C88
Import and export details are usually collected through the electronic submission to HMRC,
of the Single Administrative Document (SAD). This document, in the same format, is used
throughout the EU, each country having it printed in their own language.

In the UK it is known as form C88. Copies of a completed form can be found at the end of
this section. The form contains 54 boxes – not all of them need to be completed. The details
of which should be completed and why, are given in the Tariff, Volume 3 part 3, paragraph
3.1.1.

Import Declaration
Currently 99 per cent of import details are collected through the submission to HMRC of an
electronic import declaration (C88). You may make this yourself or use an agent to do it for
you.

The import declaration gives information needed for a complete picture of what the goods
are and what is happening to the shipment. Two of the most important pieces of information
required are the Commodity Code (also called Tariff Heading, Tariff Code, Classification
Code or Harmonised Code) and the Customs Procedure Code (CPC). Both have significant
impact on duty due and how the consignment is treated.

Can I use an Agent to make an import declaration on my behalf?
You may appoint a representative to make an import declaration on your behalf. If you use a
freight agent to complete your import formalities for you, he is working on your behalf only. If
something in the declaration needs an explanation, we will still look to you as the legally
declared importer and not the agent for clarification; it is your responsibility as the importer to
ensure the accuracy of the information provided on the declaration.

If you employ an agent to act on your behalf, the type of representation may by either Direct
or Indirect.

Direct representatives act in the name of, but on behalf of, another person.


Section ii

If an agent is acting as a direct representative i.e. the agent makes the customs declaration
on your behalf (as the principal) acting in your name, you are deemed to be the declarant
and therefore liable for any customs debt.

Indirect representatives act in their own name but on behalf of another person


We strongly recommend therefore that it is in the best interest of importers to check the
accuracy of any customs declarations made on their behalf. It is good practice to ensure that
you request, receive and obtain copies of all declarations made to customs from your
nominated agent as this will help support claims for VAT zero rating and the completion of
Import Relief procedures.


What is Economic Operator Registration Identification (EORI)?
An EORI number is a number unique throughout the European Community, assigned by a
Customs authority in a Member State to economic operators or persons. By registering for
Customs purposes in one Member State, an Economic Operator (EO) is able to obtain an
EORI number which is valid throughout the Community. The EO will then use this number in
all communications with any EU Customs authorities where a customs identifier is required.
The EORI system replaces the former Trader’s Unique Reference Number (TURN) system
and a phased implementation of EORI began on 1 April 2009. The EORI system was fully
operational by 1 July 2009.

Structure of the EORI Number
All UK EORI numbers start with the letters GB, followed by a 12 digit number based on the
EO’s VAT number and suffixed with a 3 digit number usually 000 e.g. GB123456789 000.

The structure of the UK EORI number will also be the same for EO’s who are not registered
for VAT in the UK or are not established in the customs territory of the Community.

How to obtain an EORI number in the UK
To apply for an EORI, you must submit a C220 EORI application form. There are two ways
you can apply, either by electronic or hard copy. HMRC give priority to C220 EORI electronic
applications.

 C220 electronic application form
 C220A hard copy version

Once completed, the electronic application form together with any scanned supporting
documents should be sent to the EORI team in Cardiff via email for processing. Email: to
eori@hmrc.gsi.gov.uk.

The completed hard copy form should be sent by post, together with any supporting
documents to the EORI processing team at the following address :

HM Revenue & Customs
EORI Team


Section ii

13th Floor South
Government Buildings
Ty Glas
Llanishen
Cardiff
CF14 5FP
Tel: Via the VAT, Excise & Customs Helpline +44 (0) 845 010 9000.

How quickly will I be notified on my EORI number?
In most cases the EORI application will normally be processed within one to three working
days of receipt by the EORI team. It will take a further day to update our CHIEF and EU
EORI systems. You will be notified of your new EORI number and you will be able to use
your EORI number within 24 hours after receiving this notification.

Please Note : We strongly recommend that you submit your EORI application well in
advance of when you wish to use the EORI number to avoid delays at import or export.

Further details about EORI can be found on the HMRC website EORI Scheme Home Page.
In particular the ‘Frequently Asked Questions’ section will be of assistance.

What is the Commodity Code?
The Commodity Code for imports is a ten digit number which equates to a description of the
item. Every item will have a code number – however diverse or obscure.

Against each commodity code, a duty rate is set, as are any restrictions that are likely to
apply e.g. BIS Import Licence may be needed. Classifying your product using the correct
commodity code is very important as the code;

 describes the goods, and
 sets the duty rate.

The majority of products being imported will attract duty. It is important that the correct duty
rate is paid. If you pay too much, you will be disadvantaged financially. If you pay too little,
you are likely to have to pay the additional amount later, perhaps after you have sold the
goods on. Ensuring your products are classified to their correct commodity code(s) is of
prime importance. Commodity Codes are contained in Volume 2 of the Tariff and there are
some 16,000 of them. The Tariff has monthly updates as codes can change, be removed or
new ones added. There is also an electronic version of Volume 2 of the Tariff available via
the Business Link website, which is updated on a daily basis. More information on this is
available at the beginning of Section ii of this guide under UK Trade Tariff.

If, after having studied the Tariff, you are unable to find the correct commodity code for your
product, you can contact the Tariff Classification Service on +44 (0)1702 366077 between
9.00 and 17.00 Mondays – Thursday, 9.00 and 16.30 on Fridays (except Bank Holidays)
Alternatively you can apply for a written Binding Tariff Information (BTI) decision. You can
request a BTI application form by phoning the Tariff Classification Service or you can
complete and submit the electronic version by registering for a PIN and Password via the
Government Gateway at http://www.gateway.gov.uk/ and follow the instructions given.

See also Notice 600 – Classifying your Imports or Exports.

Please note – using an incorrect Commodity Code could result in an overpayment or
underpayment of duty that Customs will repay to you or collect from you at a later date.


Section ii

What is the Customs Procedure Code (CPC)?
The CPC describes the purpose of your shipment and informs Customs about the duty to be
paid on the goods, whether it is to be –

 taken as a deposit, to be repaid when goods are re-exported,
 suspended completely because of a duty relief scheme (see Section v), or
 brought to account straightaway.

For example, are the goods coming in as samples, either to elicit orders or for you to inspect
for quality, finish etc, before giving the go-ahead for full importation of the product?
Commercial samples and Goods for examination, analysis or test can get relief from duty
and VAT and there are specific CPCs to cover this. Please see Notice 367 Importing
commercial samples of negligible value free of duty and VAT and Notice 374 Importing
goods for test free Duty and VAT, for further information.

The Tariff (Volume 3) contains the full list of CPCs for the various import options. Once you
have established the correct one, it is unlikely to change for the year.

Payment of Import Duty and VAT
Once an import declaration (usually a C88 Single Administrative Document (SAD)) has been
submitted and accepted by HMRC, the goods covered by the declaration shall not be
released unless the monies payable against that import have been paid or secured. The
usual method is by use of a Deferment Account (see below), for you or your agent. This is
the most effective and efficient way to clear your goods and pay the charges due. However,
you can also pay by guaranteed cheque (by the use of guarantee form C&E307, or by
individual bank endorsement), Bankers Draft, BACS, or CHAPS. These latter methods of
payment will be accepted in euros.

What is the Import Value?
When you import goods, you must declare a value (known as the customs value) on the
C88. It is important that this value is correct as this is the amount on which any duties and
VAT due will be calculated. The customs value is also crucial to obtaining accurate trade
statistics.

How do I determine the customs value of my goods?
Where the goods you are importing are subject to a sale, the customs value should be
based on the CIF price (cost, insurance, freight) plus certain other costs you may have
incurred in purchasing the goods (e.g. some commissions, royalty and licence fees and even
the value of materials you have supplied free of charge to a manufacturer). This method of
valuation is known as the transaction value and is used in the vast majority of importations.

Where no transaction has taken place (e.g. you imported the goods on loan), a hierarchy of
alternative methods of valuation should be used. To help guide you through this complex
area further details concerning the valuation of goods for customs purposes can be found in
Notice 252 Valuation of imported goods for Customs purposes, VAT & trade statistics.

Valuation Declarations
If you import dutiable goods over a certain value (currently £6500), you may be asked to
complete a declaration of value as well as the C88. If you buy goods and base the customs
on an earlier sale, you may be asked to register a “long term” declaration called a General
Valuation Statement (GVS), with our GVS Registration Unit in London. The declaration will
remain valid for a period of three years as long as the particulars do not change, after which


Section ii

it has to be renewed. Further details can be found in Notice 252 Valuation of imported goods
for customs purpose, VAT and trade statistics.

Rates of Exchange
If you or your suppliers issue invoices with values quoted in currencies other than sterling
these will need to be converted to sterling for customs duty and VAT purposes when
declaring goods at import and export.

The various rates of exchange can be accessed via the HMRC website. The monthly rates
shown are checked weekly and changes made if they differ by more than 5 per cent from the
last published rate. Alternatively the exchange rates are available from the VAT, Excise &
Customs Helpline on +44 (0)845 010 9000.

What documentation will I have when I import?
Whenever possible and certainly for any imports coming in under "Customs Control", you
need to have a copy of the import C88 form. We would also advise that a copy of the
supplier's invoice accompanies the consignment, or if there has been no sale, a letter or
document clearly showing what the status of the goods is.

If you have used an agent, the C88 will not necessarily look like the example at the end of
this section. Agents can input your import details direct to the HMRC CHIEF (Customs
Handling of Import and Export Freight) computer system and produce a "plain paper" print
which contains all the same information as a C88. This is called ‘Trader Input Plain Paper
C88’.

If Customs are presented with a C88 for an import coming in under "Customs Control", we
will stamp it and thereby certify the import. If the details have been input electronically
(through CHIEF), Customs will not have the physical documents to stamp – therefore we
issue the agent with an Entry Acceptance Advice. This is our way of acknowledging the
entry.

If you receive a Plain Paper C88, you should also receive the Entry Acceptance Advice. This
is proof that the entry was input and accepted by Customs.

All entries, whether input electronically or through submitting a C88, will, once they have
been accepted by us, be issued with a unique Entry Number. Regardless of which port /
airport has been used it will always follow the same format of three digits (port / airport
code), followed by six digits (including zeros), followed by a letter, followed by the date of
acceptance; for example 120 – 112034B 190302.

What is temporary storage?
The term ‘temporary storage’ applies to the status of goods imported from outside the
European Union (EU) from the time they are presented to Customs until the time that they
are assigned to a customs approved treatment or use, e.g. entered into free circulation. The
term also applies to the special customs approved premises or facilities that are used to
store such goods during the time that the goods have the ‘status of goods in temporary
storage’.

How does temporary storage work?
Goods imported from outside the EU must be presented to the customs authorities within
three hours of their arrival at the place of unloading, and be followed by a summary
declaration within twenty four hours of presentation of the goods. A full customs declaration
must be made immediately or shortly after the summary declaration. However, where


Section ii

imported goods are put into temporary storage only the presentation and summary
declaration will need to be completed within the relevant timescales. The full customs
declaration and payment of the relevant duties and taxes do not need to take place until the
permissible time limit for temporary storage has expired.

All importers can use temporary storage facilities but only certain types of traders can have
their premises approved as a temporary storage facility. These are:

 freight forwarders
 customs agents
 warehouse keepers
 transport companies

All of these must be involved in the movement of non-Community goods.

All goods are eligible to be kept in temporary storage although some goods such as
foodstuffs and firearms are subject to special requirements.

Goods in temporary storage must be assigned to a customs approved treatment or use
within:

 forty five days from the date of the summary declaration where the goods are brought
in by sea
 twenty days in the case of goods brought in by other means such as air or road.

These time limits may be extended by making a written application to HMRC at the National
Clearance Hub in Salford. Such extensions will only be granted where it is justified by the
circumstances. Failure to obtain approval can result in the goods being seized, destroyed or
sold.

What do I need to do to be authorised as a temporary storage operator?
Application forms can be obtained from the National Frontier Approvals Unit on +44 (0)121
697 4045.

The completed application form must be submitted to:

HMRC
National Frontier Approvals Unit
2 Broadway
Broad Street
Five Ways
Birmingham
B15 1BG

The request for approval must specify the type of goods to be stored as this will enable the
National Frontier Approvals Unit to advise you of other government departments that need to
be contacted as part of the authorisation process. For example, the Home Office must be
contacted regarding storage of firearms whilst the Department for the Environment, Food
and Rural Affairs (DEFRA) must be contacted for plant health related goods.

Officers will visit the premises in question to ensure that they are suitable and meet the
appropriate criteria and regulations.


Section ii

Further details about temporary storage can be found in Notice 199A Temporary Storage
and Approved Depositories.

What is meant by "Customs Control"?
When goods are imported to a CPC which declares that some sort of duty / VAT relief is
being requested on the consignment, it follows that by its very nature of relief the goods can
be effectively "duty free". So the consignment comes under Customs Control – which means
that the importer has to account, through record-keeping, for what is going to happen to
those goods, whether they are going to be re-exported or completely destroyed, how long
are they due to be in the UK / EU. An Assurance Officer can visit any trader and inspect their
records and goods. If the conditions under which importation was allowed have not been
fulfilled, HMRC may have to bring a deposit of potential duty / VAT to account, impose a
penalty or even seize the goods. Notice 999 Catalogue of Publications includes those which
can give more details on the various relief regimes.

What is a Deferment Account and how does it work?
If you intend to import on a frequent basis, a Deferment Account is an efficient method of
paying the duty and VAT due. You can apply to HMRC for a Deferment Account, which will
enable you to defer paying the charges (that would otherwise be due at importation) until a
prescribed payment day.

To apply, you will need to provide financial security (from a bank or insurance company
approved by HMRC) to cover each and every sum you defer up to an overall maximum
amount in any calendar month. This amount is your deferment limit for the month and must
not be exceeded. You will also need to complete a direct debit mandate to enable us to take
a payment from your bank account of the total charges deferred.

Note : Security must be provided to fully cover all import VAT, customs duties and excise
duties that you defer. Import VAT however may not need to be fully secured if you apply for
SIVA (Simplified Import VAT Accounting) approval.

Additionally, excise duty may not need to be fully secured if you apply for EPSS (Excise
Payment Security System). Detailed SIVA and EPSS information including application forms
can be found on our website.

Upon successful deferment application, you will be allocated a Deferment Approval Number
(DAN) that must be quoted on the import declaration if you wish to pay for charges due by
duty deferment.

The charges you defer during one calendar month (the deferment accounting period for
customs duties and import VAT) must be paid as a total sum on the 15th of the next month,
or if the 15th is not a working day, on the next working day after it. This means you can defer
charges between 2 and 6 weeks – an average of 30 days credit. For excise duties, you still
get an average of 30 days credit, but the deferment accounting period runs from the 15th of
one month to the 14th of the next month. Payments must be made on the 29th of the latter
month (or 28th February in non-leap years), or if the 29th (or 28th February in non leap years)
is not a working day, on the working day before that.

Notice 101 Deferring duty, VAT and other charges gives further guidance on this subject.

What are Preferential Rates of Duty?
The EU has trading agreements set in place with certain non-EU countries. The effect of
these is to allow goods which have met specified origin rules in the country of export to be


Section ii

imported at a preferential or reduced rate of duty. Claims to preferential rates of duty must
be supported by proof of preferential origin (a certificate, or in some cases a declaration on
an invoice or other commercial document, issued in the exporting country); further
information is given in Notice 826 Tariff Preferences - Imports. Volume 1 Section 7 of the
Tariff contains additional information in terms of which countries are involved.

The European Community has also concluded a Customs Union with Turkey in which most
products (with the exception of agricultural and coal and steel products, which are subject to
the ‘traditional’ preferential arrangements described above) can be imported into the parties
concerned without payment of customs duty. In order to qualify for this relief the products
concerned must have either been wholly produced in the Community or Turkey, or if they
have been imported into the parties from another country they must be in free circulation
with all customs duties and other equivalent charges paid. Evidence of entitlement to the
relief is provided by an ATR Movement Certificate. You can find out more about the
preferential arrangements between the Community and Turkey in Notice 812 European
Community Preferences: Trade with Turkey.

Control measures have been set in place to address the risk of goods being imported under
preference incorrectly. If a Preference Document is submitted to Customs and is found to be
incorrectly issued against the consignment, the additional duty must be paid and in the most
serious cases other penalties may be imposed. Therefore, in your own interest you should
check as far as possible that any proof of preferential origin which you present to Customs is
valid and that the goods covered by it are properly entitled to preference. Notice 826 Tariff
Preferences: Imports, tells you how you can help yourself avoid a liability to duty and how
you can check that your goods have met the rules.

What are Customs Freight Simplified Procedures (CFSP)?
CFSP is a two stage electronic method of declaration. It offers the trader a variety of
procedures, which may be operated in isolation or combined to best meet the traders needs.
It allows authorised traders to gain accelerated removal or release of most third country
imports by making a simplified declaration containing the minimum of details at the frontier.

The full statistical and fiscal details of the goods are later provided to Customs electronically
within a defined timescale. However CFSP imports will still be subject to anti-smuggling and
admissibility controls the same as all other goods entering the UK. Other features of CFSP
include possible cash flow benefits and the use of simplified procedures in conjunction with
normal entry and warehouse procedures to meet the needs of your business.

You must apply to Customs for general / specific authorisation to operate simplified import
procedures. The criteria and conditions of authorisation have changed. Details can be found
in CIP (09) 81A, which provides a link to the new application form (C&E 48) and its
explanatory notes. Further information about CFSP can be found in Notice 760 Customs
Freight Simplified Procedures (CFSP).

What are Single Authorisation for Simplified Procedures (SASP)?
SASP enables an importer to be authorised for simplified import procedures in one Member
State (MS) for all their non-EU freight operations throughout the Community. This enables
economic operators to make import declarations and pay customs duties for all transactions
in the authorising MS, although the movement of goods takes place in another.

This approach has not proved possible for Value Added Tax (VAT). This is because VAT is
a destination based tax and has to be accounted for in the MS where the goods are
‘consumed’.


Section ii

Similarly, the provision of trade statistics too, will continue to be a national requirement and
not covered by the SASP.

For UK based authorisations the standard Customs Freight Simplified Procedures (CFSP) is
used for making customs declarations. CFSP is also used for the submission of UK VAT and
statistical declarations for authorisations based in other Member States.

Can I personally bring commercial goods, purchased outside the UK, back with me?
Yes. However all commercial goods, which are not in free circulation within the EU carried in
your baggage or private vehicle must be declared. On arrival in the UK you must take the
goods to the Red “Goods to Declare” Channel. Where no separate red channel exists you
should use the Red Point phone.

The value of the goods together with the customs procedure the goods are being imported
to will determine whether or not you are required to complete a formal customs declaration
on a C88 SAD. Where a C88 is not required it will still be necessary to pay any customs
duties and taxes due and you will be given a receipt for any monies paid.

Where a customs declaration is required, you must complete the C88 in the same way as
you would for an importation of unaccompanied freight. Further details about this can be
found in Notice 6 Merchandise in Baggage.

Authorised Economic Operator (AEO)
The EU have been considering ways to raise safety and security standards within the
international supply chain of goods to address the challenges of terrorism and to help protect
EU borders and citizens.

The EU has developed the Authorised Economic Operator (AEO) scheme based on the
World Customs Organisation SAFE Framework and in response to arrangements such as C-
TPAT for imports into the USA. Benefits to those meeting the criteria include faster
clearance times and preferential treatment at the EU border amongst others. More benefits
will be available in the future when mutual recognition agreements are in place with 3rd
country trading partners (early 2010) and when the Modernised Customs Code
Implementing Provisions take effect (2013).

HMRC are accepting applications from eligible businesses – those that are involved in trade
with countries outside of the EU and operate under customs legislation. This can include
importers, exporters, freight forwarders, warehouse keepers, port operators, etc.

More detailed information on AEO can be found on the HMRC website under the Imports
and Exports section, under International Trade Developments or alternatively go to the
Business Link website which provides you with :

 the ability to complete the AEO application form and questionnaire on-line with
supporting guidance and help text; and
 an interactive AEO tool “Access your readiness for Authorised Economic Operator
status” is available to assist you in this area.

Further Information:
Further information is available in the following Notices:

Notice 6 Merchandise in Baggage.


Section ii

How to make a commercial import of goods, when returning from a trip abroad, if you have
them in your baggage and the procedure for exporting commercial goods in your baggage.

Notice 117 Authorised Economic Operators.

Notice 143 A guide for international post users and Notice 144 Trade imports by post: how to
complete customs documents.
These two notices take you through how to make an import by Post (not Courier Services).

Notice 199 Imported goods: Customs procedures & Customs debt.
An overview of general import procedures.

Notice 199A Temporary storage and Approved Depositories.

Notice 600 Classifying your Imports or Exports.
This tells you how to classify your Imports and Exports.

VAT Notice 702 Imports, gives general information on imports from a VAT aspect.

The Transit Manual on the European Commission website.

The Transit Manual Supplement provides guidance on transit procedures in the UK and can
be found within the Imports and Exports section of the HMRC website.

Business Link website
The Business Link website brings together previously fragmented and disjointed information
from government and trade associations into 196 plain English easy to understand guides
and 8 interactive tools which guide users through the complexities of trading internationally.


Section ii

An Example of a completed C88 Form
EUROPEAN COMMUNITY 1 DECLARATION

2 Consignor/Exporter No
IM
6 D
MR A K SMITH 3 Forms 4 Loading lists
GORDON & GORDON
PAIGN AVENUE
5 Items 6 Total packages 7 Reference number
AUSTRALIA 1 10 INV. 664411/99
8 Consignee No GB 111 2222 33 000 9 Person responsible for financial settlement No
BRIGGS BOOTS LTD
14, BRIGHT DRIVE
READING, BERKS RG1 5B8
UNITED KINGDOM 10 Cry1st dest/ 11 Trad/Prod. 12 Value details 13 CAP
last consig. country.

No * [GB 222 3333 44]
14 Declarant/Representative 15 Country of dispatch/export 15 C disp./exp. Code 17 Country destin.Code

BODDINGTON'S FREIGHT SERVICE a AU b a b
PETERBROOKE AVENUE, COLNBROOK SL3 0HJ 16 Country of origin 17 Country of destination

18 Identity and nationality of means of transport at departure/on arrival 19 Ctr. 20 Delivery terms

21 Identity and nationality of active means of transport crossing the border 22 Currency and total amount invoiced 23 Exchange rate 24 Nature of
transaction
BA 1064 GB AUD 5,480-00
25 Mode of transport 26 Inland mode 27 Place of loading/unloading 28 Financial and banking data
at the border of transport
4
29 Office of exit/entry 30 Location of goods
GBLHRBAC
6
Marks and numbers Container No(s) - Number and kind 32 Item 33 Commodity Code

31 Packages No
and
1 x BOX [BX] CONTAINING 10 BOXES 1 64035995 00

description CONTAINING ADULT MALE LEATHER FOOTWEAR IN PAIRS 34 Country origin code 35 Gross mass (kg) 36 Preference
of goods
BOX MARKED "1 TO UK c/o BDFS" a AU b 100
CONTAINER NO: 37 PROCEDURE 38 Net mass (kg) 39 Quota

4000 000 8.000
40 Summary declaration/Previous document

Z-380-664411/99
41 Supplementary units 42 Item price 43 V/M
Code
44 Additional
Information
10.000 5,480-00 1
Documents
N934-[AE] A.I. Code 45 Adjustment
produced/
Certificates
and authori-
B0
sations 46 Statistical value

£2,116-16
47 Calculation Type Tax base Rate Amount MP 48 Deferred payment 49 Identification of warehouse
of taxes
A00 2116.16 F 169.29 A
B00 2285.45 S 399.95 A B ACCOUNTING DETAILS

Total: 569.24 A
50 Principal No Signature: C OFFICE OF DEPARTURE

51 Intended represented by
offices
of transit Place and date:
(and country)

52 Code 53 Office of destination (and country)
Guarantee
not valid for

D CONTROL BY OFFICE OF DEPARTURE Stamp: 54 Place and date:**


Section ii

An Example of a completed C88 Form
Result: COLNBROOK 29-08-07
Seals affixed: Number: Signature and name of declarant/representative:
Identity:
S Boddington
Time limit (date): MRS S BODDINGTON
Signature:

C88A

* There is a requirement to enter the code for the type of representation in square brackets
at the beginning of the No field. You are advised to refer to the Tariff completion notes for
Box 14.

** More information is required but this is dependent on who is signing the declaration. You
are advised to refer to the Tariff completion notes for Box 54.


Section ii

Am I likely to need an import licence or permit?
When you import, you may come across a number of licensing requirements, these include;

 Common Agricultural Policy (CAP) Licences,
 Department for Business, Innovation and Skills (BIS) Licences,
 Department for Environment, Food & Rural Affairs (DEFRA) Documents,
 Convention for the International Trade in Endangered Species of Wild Fauna and
Flora (CITES) Permits,
 European Commission Licences,
 Office for Civil Nuclear Security (OCNS) Licences,
 Forestry Commission Licences and
 Office of Communications (Ofcom) Licences.

What are Common Agricultural Policy (CAP) Licences?
If you import agricultural produce, whether as raw materials or processed goods, CAP
Licences are usually needed. They are issued and controlled by The Rural Payments
Agency (RPA). The HMRC National Clearance Hub, in conjunction with UKBA are
responsible for the policing of the licences at the time the goods are imported.

How will I know if I need a CAP licence?
When you have established the commodity code or codes relevant to your product, the RPA
can advise you whether a licence is needed. If a licence is needed and is not presented at
the time of importation, the goods will not be allowed to move from the port / airport. It is
worth remembering that CAP goods being imported from one country may need a licence,
whereas the same goods coming from another country may not.

CAP licences can be issued to control certain aspects of imports, e.g. restrict the quantity of
a certain type of goods being imported from a certain country, or to restrict the quantity of a
product which gets a preferential rate of import duty.

You can contact the RPA on their general helpline number +44 (0)191 226 5050 or visit the
RPA website.

What are Department for Business, Innovation and Skills (BIS) Licences?
You may need to apply to BIS for a licence to import a small range of products, currently
certain textiles, iron and steel products, firearms and ammunition, anti personnel mines,
torture equipment and military equipment originating in or consigned from North Korea. They
are issued by the BIS and enforced by HMRC and UKBA.

When you have established the commodity code or codes relevant to a product falling to the
above list, BIS will be able to advise you whether you will need to apply to BIS for a licence.
If a licence is needed and is not presented at the time of importation, the goods will not be
allowed to move from the port / airport. It is worth remembering that goods being imported
from one country may need a licence, whereas the same goods coming from another
country may not.

The import of nuclear materials is administered by the Office of Civil Nuclear Security
(OCNS)(part of the HSE) and the import of chemical weapons by the Chemical Weapons
Authority part of the Department for Energy and Climate Change (DECC) using BIS’s import
legislation. These import licences are issued by these bodies respectively and not by BIS’s
import licensing branch. Further details on OCNS can be found at the end of this section.


Section ii

BIS import licences are usually issued to implement an International, European and UK
domestic wide licensing requirement such as restriction on the quantity that is allowed to be
imported e.g. for textiles originating in Belarus, for monitoring purposes e.g. iron and steel or
to implement prohibitions and restrictions e.g. torture equipment and firearms. Importers of
firearms and ammunition will normally require a BIS import licence. The licensing regime is a
back up to the UK domestic control on the possession of firearms.

The import licensing branch at the BIS can be contacted on +44 (0)1642 364333/334, or visit
the BIS website.

What are Department for the Environment, Food & Rural Affairs (DEFRA) Documents?
If you import meat, poultry, dairy products, some other foodstuffs, livestock, blood, plant or
plant products, endangered species or fur, a DEFRA licence, permit, certificate of conformity
and / or a Common Veterinary Entry Document (CVED) will usually be required.

When will I need a Department for Environment, Food & Rural Affairs (DEFRA)
Document?
Goods such as meat, poultry, and their products, dairy products (including milk and eggs),
animal bones or blood, sausage skins and fishery products are required to undergo
veterinary health checks at a Border Inspection Post (BIP) on arrival in the UK. In addition to
the veterinary documents required by the BIP, a Common Veterinary Entry Document
(CVED) issued by the BIP will normally be required to obtain customs clearance.

Certain fish and fishery products require under the Illegal Unreported and Unregulated
Regulation (IUU) a valid catch certificate for consignments entering the EU.

Full details of all of the above controls can be found on the DEFRA website.

The Convention for the International Trade in Endangered Species of Wild Fauna and Flora
(CITES) implemented by EC Regulation prohibit the import and export of certain endangered
species and products made from them or contained in them without a valid CITES permit or
notification. Endangered species include tigers, rhinos, monkeys, parrots, birds of prey,
crocodiles, tortoise, turtles, tortoise shell, orchids and cacti. Items made from or including
endangered species are also subject to the same controls such as bags, belts, shoes made
from the skins of endangered species, caviar, ivory carvings or statues and Traditional Asian
Medicines that contain ingredients such as tiger bone, bear bile and orchids. This is not an
exhaustive list and further information can be obtained from DEFRA or on the CITES
website. You should be aware that some species are not listed in the CITES convention but
are still protected and prohibited under the EC Regulations, therefore you should always
check with DEFRA before importing. The presentation of a valid CITES permit does not
permit the by-pass of other import controls on live animals or plants.

Under national legislation rabies susceptible animals require a UK import licence. Certain
pets may be imported without the need to undergo quarantine if they comply with the
conditions of the Pet Passport Scheme. The pet passport scheme only applies to pet cats,
dogs and ferrets.

Certain plants, plant produce and plant products are prohibited from entering the UK from
non-EU countries. It may be possible to import and keep prohibited material for trial or
scientific purposes or for work on varietal selections, subject to strict quarantine and
containment conditions under the authority of a licence issued by the Food and Environment
Research Agency (FERA) – now incorporating Plant Health but formally part of DEFRA /


Section ii

National Assembly for Wales (NAW) / SGRPID (formerly SEERAD) for Scotland and DARD
for Northern Ireland.

In general, all plants and some plant produce and products that are permitted to enter
England, Wales and Northern Ireland from non–EU countries must be accompanied by a
phytosanitary certificate.

In Scotland, all plants and some plant produce and products that are permitted to enter
Scotland from non-EU countries must be accompanied by a phytosantary certificate and a
quarantine release certificate (QRC). The QRC is issued by SGRPID (formerly SEERAD).

All imports of fresh fruit, vegetables and nuts subject to EU Marketing Standards required a
recognised certificate of conformity before release into free circulation within the European
Union, until new EC legislation which came into force on 1 July 2009 relaxed HMI conformity
controls at import on a range of Fruit and Vegetables. This legislation also removed the
requirement for a processing certificate for all Fruit and Vegetables. RPA Horticultural
Marketing Inspectorate will continue to issue conformity certificates for importations
controlled under Special Marketing Standards (SMS) entering England or Wales, SGRPID
(formerly SEERAD) for Scotland and DARD for Northern Ireland.

The Automatic Licence Verification System (ALVS) provides an interface between
Government systems enabling lead government departments, initially the RPA (HMI) and
DEFRA (FERA), to be responsible for providing their import control decisions (hold, release,
refuse) directly to HMRC, thereby removing the need for manual documentary checks by
Customs officers.

ALVS is dependent upon Advance Notification being made into DEFRA’s PEACH system,
before traders (and their agents) submit an import declaration to HMRCs CHIEF system.
ALVS was fully launched on 16 February 2010.

Feed and Food products of non-animal origin (e.g. grain) imported into the EU must also
comply with feed and food safety requirements. High Risk Feed and Food products have to
be pre-notified to health authorities and can only be imported through approved ports and
airports. A Common Entry Document (CED) endorsed by the Port Health Authority will be
required to obtain customs clearance.

A list of the high risk products, country of origin can be found at Annex 1 of Commission
Regulation (EC) 669/2009 as amended by Commission Regulation (EC) 212/2010.

Further information can be found on the Food Standards Agency Website.

Aflatoxins
From 1 January 2010, a new Commission Regulation (EC) No 1152/2009 imposed special
conditions governing the import of nuts, figs, dried fruit and certain products made from
those food items from certain non-EU countries due to contamination risk by aflatoxins, and
repeals and replaces Commission Decision 2006/504/EC.

These special conditions include that these specified products have to be pre-notified to
health authorities and can only be imported through approved ports and airports. A Common
Entry Document (CED) endorsed by the Port Health Authority will also be required to obtain
customs clearance.

Information about the specific foodstuff and country of origin can be found at Article 1 of
Regulation 1152/2009.


Section ii

The furs of all harp and hooded seal pups are prohibited under national legislation. From 20
August 2010, all products from pinnipeds (seals, sea-lions and walruses) will be prohibited.
The only exceptions will be products that :

 Are for personal use, of travellers or where there is a change of residence;
 Result from traditional hunts conducted by Inuit and other indigenous communities
and contribute to their subsistence; or
 Result from hunts regulated under national law with the sole purpose of the
sustainable management of marine resources and where the products are marketed
on a non-profit basis.

The last two exceptions will need to be covered by a seal attestation issued by the country
where the animal was killed.

The fur of certain other animal species may only enter the European Union (EU) if
accompanied by evidence of their humane capture and legal origin. EU legislation also bans
the import of cat and dog fur and any products made from such fur.

Imports of fertiliser where the consignment is MORE than 500KG and has an Ammonium
Nitrate content of MORE than 28% should have a valid Exemption Certificate issued by the
Health and Safety Executive or a valid Detonation Resistance Test Certificate (DRT) in
English. These imports should be advised to DEFRA prior to import taking place. Further
information on this is available from the DEFRA website.

You should contact DEFRA on their general helpline number +44 (0)20 7238 6951 or +44
(0)845 933 5577 or visit the DEFRA website for details of the specific import requirements
for all of the above goods.

When will I need a Forestry Commission Inspection Document?
Certain types of timber and forestry products must be covered by an inspection document
issued by the Forestry Commission to be cleared by customs.

You can contact the Forestry Commission on +44 (0)131 334 0303 or +44 (0)845 367 3787,
or visit the Forestry Commission website.

When will I need a European Commission Licence?
The import of certain ozone depleting substances (ODS), fluorinated greenhouse gases
(Fgas) and products which contain them (for example certain fridges or aerosols) is either
prohibited or requires the authority of an import licence issued by the European
Commission.

For further information see F gases and ODS – How do I comply?, on the DEFRA website.

What are Health & Safety Executive (HSE) controls?
HSE are the UK Competent Authority for administering approvals for imports of many
chemical substances. These include :

 Chemicals that are subject to “Prior Informed Consent” (PIC) legislation;
 Chemicals subject of “Persistent Organic Pollutants” legislation – pesticides /
herbicides etc.
 “Carcinogenic Substances” – the importation of certain carcinogenic substances,
covered by the Control of Substances Hazardous to Health (COSHH) 1988


Section ii

Regulations are banned unless covered by an exemption certificate, but otherwise
are covered by PIC requirements.
 Asbestos – the importation of the vast majority of asbestos products is banned under
the Control of Asbestos Regulations 2006 but otherwise subject to “Prior Informed
Consent” (PIC) legislation.
 REACH – (Registration, Evaluation, Authorisation and Restriction of Chemicals)
 Ammonium Nitrate – If you manufacture, import, supply or keep ammonium nitrate
which is to be used other than as a fertiliser, you can apply for an exemption
certificate by writing on your company’s letter headed paper to :

Mines Quarries and Explosives Policy
Health and Safety Executive
Rose Court
2 Southwark Bridge
London SE1 9HS

Tel : +44 (0)20 7717 6262
Fax : +44 (0)20 7717 6690
Email : explosives.policy@hse.gsi.gov.uk

You can contact the HSE Information line on +44 (0)845 345 0055, or visit the HSE website.

When will I need an Office of Communications (Ofcom) Licence?
The import of certain radio equipment (particularly if it transmits the human voice) may be
prohibited except with the authority of an import licence issued by the Office of
Communications.

You can visit the Ofcom website or contact them by phone on +44 (0)845 456 3000 or +44
(0)20 7981 3040.

What are Environment Agency controls?
Environment Agency is the UK competent authority for enforcement of Transfrontier
Shipment of Waste (TFS) legislation applying to import of waste shipments for disposal,
recovery or recycling etc. Such consignments can require notification or consent procedures.

You can contact the EA TFS helpline on +44 (0)1925 542265 or email
NATTFS@environment-agency.gov.uk or visit the International shipments of waste page on
the Environment Agency website.

When will I need a Kimberley certificate?
The import of rough diamonds from outside the EU requires an original Kimberley certificate.
Original certificates must be presented on import and will be forwarded to the Government
Diamond Office. Failure to do this may result in the diamonds being detained or seized, and
losing their conflict-free status under the Kimberley Process.

You can contact the Government Diamond Office at the Foreign and Commonwealth Office
on +44 (0)20 7008 6903 / 5797 or via email GDO@gtnet.gov.uk or visit the Foreign &
Commonwealth office website and enter ‘Government Diamond Office’ in the search engine.

When will I need a Catch Document?
The imports of all types of Dissostichus species of fish (sometimes known as Patagonian
Toothfish, Chilean Seabass or Antarctic toothfish / Antarctic Cod) require Catch


Section ii

documentation. To find out about the catch document scheme, visit the CCAMLR
(Convention on the Conservation of Antarctic Marine Living Resources) website.

When will I need an Office for Civil Nuclear Security (OCNS) Licence?
For safety and security reasons, nuclear materials are amongst those commodities that may
not be imported under the Open General Import Licence (OGIL) unless consigned from a
Member State of the European Community and therefore require individual import licences.

Until recently the Import Licensing Branch (ILB) of the Department for Business, Innovation
and Skills (BIS) were responsible for issuing these individual licences, however since 26
March 2007, OCNS (Office for Civil Nuclear Security) has assumed this responsibility.
Therefore importers must now apply to OCNS for a licence to import the following nuclear
materials from outside of the European Community.

 Tariff Heading 2612 – Uranium Ore concentrates
 Tariff Heading 2844 – Plutonium, Uranium 233, Uranium enriched in the isotopes 233
or 235, natural Uranium and mixtures, compounds and alloys containing any of the
foregoing, including spent or irradiated nuclear reactor fuel elements (cartridges)

It should be noted that in order for the UK to meet its international obligations, it is unlikely
that a licence would be granted to import nuclear materials from a state not party to the
Convention on the Physical Protection of Nuclear Material.

Further information on this is available from the HSE Website.

Offensive Weapons
It is prohibited to import flick and gravity knives as per the Restriction of Offensive Weapons
Act 1959 (ROWA). There are also restrictions on the import of a number of weapons
covered by Section 141 of the Criminal Justice Act 1988 (CJA 1988) as set out below.

The list of prohibited Offensive Weapons as per Section 141 of the Criminal Justice Act 1988
as amended apply to the following descriptions of weapons, other than weapons of those
descriptions which are antiques:

(a) a knuckleduster, that is, a band of metal or other hard material worn on one or
more fingers, and designed to cause injury, and any weapon incorporating a
knuckleduster;

(b) a swordstick, that is, a hollow walking-stick or cane containing a blade which may
be used as a sword;

(c) the weapon sometimes known as a "handclaw", being a band of metal or other
hard material from which a number of sharp spikes protrude, and worn around the
hand;

(d) the weapon sometimes known as a "belt buckle knife", being a buckle which
incorporates or conceals a knife;

(e) the weapon sometimes known as a "push dagger", being a knife the handle of
which fits within a clenched fist and the blade of which protrudes from between two
fingers;


Section ii

(f) the weapon sometimes known as a "hollow kubotan", being a cylindrical container
containing a number of sharp spikes;

(g) the weapon sometimes known as a "footclaw", being a bar of metal or other hard
material from which a number of sharp spikes protrude, and worn strapped to the
foot;

(h) the weapon sometimes known as a "shuriken", "shaken" or "death star", being a
hard non-flexible plate having three or more sharp radiating points and designed to
be thrown;

(i) the weapon sometimes known as a "balisong" or "butterfly knife", being a blade
enclosed by its handle, which is designed to split down the middle, without the
operation of a spring or other mechanical means, to reveal the blade;

(j) the weapon sometimes known as a "telescopic truncheon", being a truncheon
which extends automatically by hand pressure applied to a button, spring or other
device in or attached to its handle;

(k) the weapon sometimes known as a "blowpipe" or "blow gun", being a hollow tube
out of which hard pellets or darts are shot by the use of breath;

(l) the weapon sometimes known as a "kusari gama", being a length of rope, cord,
wire or chain fastened at one end to a sickle;

(m) the weapon sometimes known as a "kyoketsu shoge", being a length of rope,
cord, wire or chain fastened at one end to a hooked knife;

(n) the weapon sometimes known as a "manrikigusari" or "kusari", being a length of
rope, cord, wire or chain fastened at each end to a hard weight or hand grip;

(o) a disguised knife, that is any knife which has a concealed blade or concealed
sharp point and is designed to appear to be an everyday object of a kind commonly
carried on the person or in a handbag, briefcase, or other hand luggage (such as a
comb, brush, writing instrument, cigarette lighter, key, lipstick or telephone);

(p) a stealth knife, that is a knife or spike, which has a blade, or sharp point, made
from a material that is not readily detectable by apparatus used for detecting metal
and which is not designed for domestic use or for use in the processing, preparation
or consumption of food or as a toy;

(q) a straight, side-handled or friction-lock truncheon (sometimes known as a baton);

(r) a sword with a curved blade of 50 centimetres or over in length; and for the
purposes of this sub-paragraph, the length of the blade shall be the straight line
distance from the top of the handle to the tip of the blade.

In order to legally import the weapons listed within a-r above, you should ensure you have a
valid defence as set out the Section 141 of the CJA 1988. Failure to satisfy the import
restrictions will result in the weapons being seized. Further information regarding the
weapons and valid defences can be obtained from the Home Office, Violent Crime Unit +44
(0)20 7035 1807.

Realistic Imitation Firearms (RIFs)


Section ii

With effect from October 2007 Section 36 of the Violent Crime Reduction Act 2006 (VCRA)
prohibited the import of RIFs unless the importer has a valid defence set out in Section 38 of
the VCRA. The defences include amongst others membership of an Airsoft Club or member
of a re-enactment group.

Realistic imitation firearm means an imitation firearm which :
 has an appearance that is so realistic as to make it indistinguishable, for all practical
purposes, from a real firearm; and
 is neither a de-activated firearm nor itself an antique.
 an imitation firearm is not to be regarded as distinguishable from a real firearm for
any practical purpose if it could be so distinguished only
by an expert;
on a close examination; or
as a result of an attempt to load or to fire it.
In determining whether an imitation firearm is distinguishable from a real firearm :
 the matters that must be taken into account include any differences between the
size, shape and principal colour of the imitation firearm and the size, shape and
colour in which the real firearm is manufactured;
 the imitation is to be regarded as distinguishable if its size, shape or principal colour
is unrealistic for a real firearm. The dimensions specified as unrealistic are a height
of 38 millimetres and a length of 70 millimetres. The colours specified as unrealistic
are bright red; bright orange; bright yellow; bright green; bright pink; bright purple;
and bright blue.
Further information regarding RIFs and valid defences can be obtained from the Home
Office, Public Order Unit +44 (0)20 7035 1786.


Section ii

What are Tariff Quotas?
A Tariff Quota is a pre-set value or quantity of given goods, which may be imported into the
European Union (EU) during a specified period with a reduction of the normal customs
duties, and beyond which an additional quantity of the goods can still be imported by paying
normal Customs duties.

The Tariff Quota will most usually be expressed in net weight (kg) but other quantities may
be applied (value, volume, number of pieces etc). While most quotas are open for a full
calendar year some quotas may be seasonal or may straddle two years (e.g. July to June).
The quota will be available within its validity period for as long as the quota balance allows.
The duties relieved can be customs duty and / or agricultural charges but also increasingly
quota is used as the mechanism to control additional duties levied for market or trade control
purposes.

Who imposes Tariff Quotas?
A quota is put in place by the EU usually in the form of a Council or Commission Regulation
published in the Official Journal of the European Union.

Once an individual quota has been used up, then any further import must be made at the
appropriate non-quota rate. This will most usually be at the full Common Customs Tariff rate
but may be at an intermediate rate such as GSP or Preference if available. In certain
circumstances outside of the quota additional duties may be levied.

Importers wishing to benefit from Tariff Quotas must make a claim in accordance with
Community and national requirements. Tariff Quotas are identified in Commission
documents by their Order Number (a six digit number starting 09).

Will I be involved in Tariff Quotas?
To know whether a quota has been put in place against goods you wish to import, you need
to refer to the commodity code(s) listed in the Tariff and check if "TQ" is shown in the first
column following the commodity code.

If TQ is shown, you will need to check the additional information given at the back of the
specific Tariff Chapter for that commodity code – remember to check the country of origin. If
your goods are listed and you wish to import under the benefit of the quota, you will need to
note the TQON shown.

How do I request a share of the Quota?
Tariff Quotas are allocated on a first come first served basis with respect to the date of entry,
there is no national share, all quotas are available equally across all Member States. In
accordance with Community provisions, the Customs services register the date when they
accept each Customs declaration. Management of Tariff Quotas on a first come first served
basis means that, when more than one claim on the same Tariff Quota is being considered,
priority is given to the claim which results from the Customs declaration(s) accepted first
(this is in respect to date not time). Claims that have the same priority are given equal
treatment. This is usually done at the time of import when the TQON is declared on the
import declaration. You will not know immediately if your request has been successful – all
the requests received throughout the EU are collated and apportioned by the European
Commission and allocated two working days after receipt.

It is worth remembering that it is quite feasible for a quota not to open on the date shown, or
for a quota to become available before its details appear in the Tariff.


Section ii

What happens to my request?
An available quota can be given either an Open Status or Critical Status. Where a quota is
Open no security is required to protect the duty when a valid claim is made, and traders /
economic operators can usually assume that quota benefit has been allowed. When
however the starting balance is small, the quota has a history of rapid exhaustion, the
remaining balance falls below or at the discretion of Member States, the quota may be set at
Critical. Quota requests for critical quotas must include security at the appropriate non-
quota rate. Where the quota is allowed in full, the security will be released automatically,
however should the quota exhaust, some or all of the security will be retained. You can put
in a claim after your import has taken place (known as a belated claim), the date of the claim
will still be the original entry date but if the quota has closed in the meantime, your back-
dated claim will not be successful.

Under UK Charter Standards our target is to repay any duty overpaid (or held as security
pending the outcome of your claim to a quota), within 30 working days. This is not always
possible however, because we cannot control the time needed by the Commission to
process all the quota claims and issue the results.

Your claim could be –

 Allowed in full – so the whole of your consignment benefits from a lower rate of duty,
 Partially allowed – so only a set amount of your consignment can benefit from a lower
duty rate, or
 Refused – so your whole consignment will have duty at the full rate.

Notice 375 Tariff Quotas and the Tariff Volume 1 Part 8 contain further details about quotas.

Where can I get further advice?
Quotas are administered in the UK by the Central Tariff Quota Unit (CTQU), part of HMRC.
This team can provide you with up-to-date information on specific Tariff Quota Order
Numbers (TQON). You can contact the CTQU between the hours of 9.30 to 16.00 on +44
(0)1702 367963, 366787 or 361930, or by facsimile on +44 (0)1702 367342. Their address
is:

Central Tariff Quota Unit (CTQU)
10th Floor South East
Alexander House
21 Victoria Avenue
Southend on sea
Essex
SS99 1AA

Details of Duty rates, the most up to date quota balances and other tariff information can be
found on the European Commission DDS website. Where the order number is known (see
the additional information pages in the Tariff for the order number), users can go direct into
the quota pages. Alternatively there is a link to quota from Taric where only the Commodity
code or description is available.


Section ii

What are Import Preferences?
The EU has set-up trading agreements with certain countries around the world. The
agreements are in place to allow products originating in particular countries to be imported
into the EU at a reduced or nil rate of duty. Such preferences are very specific and are
subject to the satisfaction of a number of conditions, the most important being compliance in
the exporting country with the appropriate preferential rules of origin. Proofs of preferential
origin (certificates or in some cases declarations on invoices or other commercial
documents) are issued in the country of origin and submitted in the country of import. These
proofs of preferential origin accompany individual consignments.

What are the Import Preference Schemes?
There are two major types – Autonomous or Non-Reciprocal (Import only) and Reciprocal.
The schemes are covered by the trade agreements signed by the EU and various partner
countries.

 AUTONOMOUS OR NON-RECIPROCAL - Generalised System of Preferences
(GSP)
Only those GSP beneficiary countries who have notified the EU Commission of the
authorities which will stamp their preference certificates and have provided it with a
specimen of the stamp concerned are able to benefit from the preferential
arrangements. A full list can be found in the Tariff Volume 1, Part 7.

Claims to preferential rates of duty under the GSP must normally be supported by a
GSP Form A. It is a certificate of preferential origin and must be stamped and
signed by the competent authority within the country – usually (but not always) the
Customs Authority. The relevant authority has to be notified to the European
Commission in advance of the implementation of the preferential arrangement, but
there is the possible alternative for the exporter to use a declaration on the Invoice -
see below concerning declarations on an invoice.

The certificate covers one consignment. If however the consignment is expected to
be broken down into a series of entries over a period of 3 months or less, then you
may exceptionally apply to Customs at the port / airport where the goods will be
imported, to allow one certificate to cover these entries. Customs will look to ensure
that all entries will be eligible. Notice 826 Tariff Preferences: Imports, gives more
detail about this facility.

The GSP Form A has a limited period of validity from the date of issue. At present
this is ten months. If a certificate is not fully completed, it can be rendered invalid, so
you are advised to check the document for completeness prior to importation. Please
remember that any corrections must be made by the supplier.

As an alternative, exporters in “GSP” Countries can use declarations on a
commercial invoice up to a maximum goods value of £5700 (6000 Euros).

 RECIPROCAL - EUR Preferences
Reciprocal agreements apply to both import to the EU and export from the EU. There
are two ways to support a claim to preference on imported goods or to prove the
preferential origin of goods which are being exported under preference. The most
commonly used document is a Form EUR 1.

If the consignment is under a stated value, then a declaration on the invoice or other
commercial document with a legally approved form of words can be used as an


Section ii

alternative. In addition, many reciprocal Agreements enable exporters to become
approved to issue invoice declarations regardless of the values involved. See Notice
826 Tariff Preferences: Imports and Notice 827 European Community Preferences:
Export Procedures, for further details.

Each form EUR1 or invoice declaration covers one consignment and the documents
again have a limited period of validity of 4, 5 or 10 months depending upon the
particular preferential trade agreement concerned.

What is meant by the "origin" of the product / goods?
The entitlement to a preferential rate of duty, depends on the product meeting its relevant
Origin Rule. These rules vary according to the product and the preferential trade agreement
concerned. They require either that the product is wholly produced in the preference country
or that it has been manufactured there in accordance with particular rules. More guidance on
the specific rules can be found in our Notice 812 European Community Preferences: Trade
with Turkey, Notice 828 Tariff Preferences – rules of origin for various countries including
Albania, and Notice 832 Tariff Preferences – rules of origin for Mexico.

Roles and Responsibilities
If the supplier states he is able to send a preference document confirming the preferential
origin of your consignment, it is in your interest to check the authenticity and accuracy of the
documentation.

Your supplier will have had to get the preference certificate stamped by their competent
authority – but this does not in itself guarantee that the certificate will have been issued
correctly. As the legally declared importer, you are responsible if an invalid claim to
preference is made when your goods are imported. This carries with it the likelihood of a
duty demand – which can be issued up to three years from the date of importation, as well
as the possibility of a fine in more serious cases. Notice 826 Tariff Preferences: Imports,
suggests checks you can make prior to importation to ensure that your goods meet the
rules.

What if my goods are not transported directly to the UK?
As a general rule ALL consignments on which preference will be claimed upon import to the
EU should be transported direct from the preference country to the Community. However,
exceptions are allowed whereby goods can travel via other countries and still claim
preference at their intended destination, so long as the goods concerned remain under
customs control in the country of transit and are not processed or altered in any way.

Can certificates be obtained retrospectively or replacements obtained?
Both GSP and EUR 1 Certificates can be issued retrospectively, but this must be
considered an exception.

If a certificate is lost, destroyed or stolen a duplicate can be issued. A duplicate certificate is
the top copy of a certificate only. It must be stamped and signed by the competent authority
and will be valid from the date on which the original was issued – photocopies of the original
form are not acceptable. Notice 826 Tariff Preferences: Imports, provides additional
guidance.

What happens if I cannot get a certificate in time?
If the goods you are importing do not have a preference certificate covering them at that
time, the full rate of duty will be required as security. This security covers the possibility of no
certificate being issued or the claim to preference being rejected.


Section ii

A valid documentary proof of origin should be produced within four months from the date the
entry is accepted (see Notice 826 Tariff Preferences: Imports). If at the end of this period the
proof of origin is not available, the duty secured will be brought to account. However, if the
certificate then arrives, you may be entitled to submit a belated claim to preference and a
refund of duty.

Can I claim a preference for every import?
The answer is no – not all goods attract a preferential rate of duty and quotas may be in
place for certain goods from particular countries. This has the effect of limiting the quantity of
the product that can be brought in under preference. Once the quota limit is full, the goods
can still be imported but at the full rate of duty.

What if the quota is used up?
If claiming a preference is important to your pricing structure, you may want to place your
goods in a Customs Warehouse. This effectively defers liability for payment of duty and VAT,
until such time as the preference quota is available again.

You can then remove the goods from warehouse and present the correct certificate for the
preference under the new quota. It must be noted however that there is no guarantee a new
quota will be issued or that your claim under it will be allowed. You must also bear in mind
that the preference certificates and invoice declarations covering the goods have a limited
period of validity.

For further information about Import Preferences you should read Notice 826 Tariff
Preferences: Imports.

For information about the special preferential arrangements between the EU and Turkey
which are based on the free circulation status of goods, rather than the traditional rules of
origin mentioned above, you should read Notice 812 European Community Preferences:
Trade with Turkey.

Notice 826 Tariff Preferences: Imports, is available on our website, latest version December
2007.

Notice 828 Tariff Preferences – rules of origin for various countries including Albania is
available on our website, latest version September 2007.


A Guide To Export Procedures
Section iii

The Tariff
The Integrated Tariff of the United Kingdom, usually referred to as The Tariff contains all the
information to help you with Importing or Exporting. It includes references to the relevant
laws and regulations.

Although the UK version is called the “Integrated Tariff of the United Kingdom”, the same
format is used throughout the EU. Importing and exporting are covered by EC Regulations,
so regardless of the country in which you operate, the Tariff equivalent acts as a
comprehensive point of reference. Please note that all EU countries have the same
commodity codes, duty rates and procedures as the UK.

The Tariff consists of 3 volumes –

 Volume 1 contains essential background information for importers and exporters.
It covers – duty relief schemes, contact addresses for organisations such as
Department for Business, Innovation and Skills, Department of Environment,
Food and Rural Affairs and Forestry Commission. It also contains an explanation
of Excise duty, Tariff Quotas and many similar topics.

 Volume 2 contains the 16,000 or so Commodity Codes set-out on a Chapter by
Chapter basis. It lists duty rates and other directions such as import licensing and
preferential duty rates.

 Volume 3 contains a box-by-box completion guide for import and export entries –
the C88 form, the complete list of Customs Procedure Codes (CPCs) for
importing and exporting, Country / Currency Codes, lists of UK ports and airports
both alphabetically and by their legacy Entry Processing Unit (EPU) numbers,
and further general information about importing or exporting.

The Tariff is available on an annual subscription. At the time of going to print the cost is
£265. Each December, a complete Tariff for the coming year is despatched followed by
monthly amendments which replace existing pages.

If you do not wish to obtain your own copy, the Tariff is available at some larger libraries.

Whether or not you own a Tariff, it is essential that you keep up-to-date with changes in
commodity codes, rates of duty and regulations related to your products.

You can buy the Tariff in printed and CD ROM formats or subscribe to the new e-service,
from :

The Stationery Office
The Publications Centre
PO Box 29
Norwich
NR3 1GN

General enquiries and orders Telephone +44 (0)844 4777 414
Orders only Fax +44 (0)870 600 5533
Subscriptions Email subscriptions@tso.co.uk
Website www.tsoshop.co.uk

Version 28 – October 2010 37 Section (iii)
A Guide to Export Procedures

Section iii

UK Trade Tariff
A free online version of volume 2 of the Tariff is available via the Business Link website. It
offers a browse and search facility that enables users to classify goods and quickly find
detailed information such as commodity descriptions, duty rates, Anti Dumping Duty, Quota,
VAT and excise rates, preferential agreements, government controls and explanatory notes
for any commodity in the UK Tariff. There are daily data updates from the European Union’s
TARIC database and the HMRC Customs Handling of Import and Export Freight (CHIEF)
system. There is an email alert system to let you know when anything changes within the
Tariff. Additionally the UK Trade Tariff allows you to quickly identify the relevant licences /
certificates that are applicable for each particular commodity code.

Why are HM Revenue & Customs and the UK Border Agency interested in my goods?
Customs have an interest in exports for a number of reasons. These include:-

 Collecting export trade statistics for the UK and the EU,
 Enforcing export prohibitions and restrictions,
 Ensuring that export licensing requirements are met,
 Ensuring that EU Regulations for export relief schemes are correctly implemented,
 Preventing the unauthorised return of duty-free or VAT zero-rated goods to the home
market, and
 Acting as an agent for Other Government Departments such as RPA, DEFRA etc,
 Confirming the exit of Exports starting from the UK, exiting via another Member State
and the exit of other Member States exports from the UK.

Export Declaration
Export details are collected through the submission to Customs of an electronic export
declaration. The data is captured on the CHIEF (Customs Handling of Import / Export
Freight) mainframe computer system. Permission to progress (P2P) must be granted before
goods may be exported.

Details of the current requirements can be found in Volume 3, Part 1.9 of the UK Tariff.

Safety and Security regulations came into force on 1 July 2009; there are additional items
included in the export declarations. Exceptionally, for travellers manual declarations are
submitted via a new form that incorporates the Safety and Security details called the ESS
(Export Safety and Security).

What happens if I use an Agent to make an export declaration on my behalf?
You may appoint a representative to make an export declaration on your behalf. If you use a
freight agent to complete your export formalities for you, he is working on your behalf only. If
something in the declaration needs an explanation, we will still look to you as the legally
declared exporter and not the agent for clarification; it is your responsibility as the exporter to
ensure the accuracy of the information provided on the declaration.

If you employ an agent to act on your behalf, the type of representation may be either Direct
or Indirect.

Direct representatives act in the name of, but on behalf of, another person.

If an agent is acting as a direct representative i.e. the agent makes the customs declaration
on your behalf (as the principal) acting in your name, you are deemed to be the declarant
and therefore liable for any customs debt.


Section iii

Indirect representatives act in their own name but on behalf of another person.


We strongly recommend therefore that it is in the best interest of exporters to check the
accuracy of any customs declarations made on their behalf. It is good practice to ensure that
you request, receive and obtain copies of all declarations made to customs from your
nominated agent as this will help support claims for VAT zero rating. As a minimum, HMRC
would be looking for a Movement Reference Number (MRN) when auditing claims for VAT
zero rating.


What is Economic Operator Registration Identification (EORI)?
An EORI number is a number unique throughout the European Community, assigned by a
Customs authority in a Member State to economic operators or persons. By registering for
Customs purposes in one Member State, an Economic Operator (EO) is able to obtain an
EORI number which is valid throughout the Community. The EO will then use this number in
all communications with any EU Customs authorities where a customs identifier is required.
The EORI system replaces the former Trader’s Unique Reference Number (TURN) system
and a phased implementation of EORI began on 1 April 2009. The EORI system was fully
operational by 1 July 2009.

Structure of the EORI Number
All UK EORI numbers start with the letters GB, followed by a 12 digit number based on the
EO’s VAT number and suffixed with a 3 digit number usually 000 e.g. GB123456789 000.

The structure of the UK EORI number will also be the same for EO’s who are not registered
for VAT in the UK or are not established in the customs territory of the Community.

How to obtain an EORI number in the UK
To apply for an EORI, you must submit a C220 EORI application form. There are two ways
you can apply, either by electronic or hard copy. HMRC give priority to C220 EORI electronic
applications.

 C220 electronic application form
 C220A hard copy version

Once completed, the electronic application form together with any scanned supporting
documents should be sent to the EORI team in Cardiff via email for processing. Email: to
eori@hmrc.gsi.gov.uk.

The completed hard copy form should be sent by post, together with any supporting
documents to the EORI processing team at the following address :

EORI Team
13th Floor South
Government Buildings
Ty Glas


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Llanishen
Cardiff
CF14 5FP
Tel: Via the VAT, Excise & Customs Helpline +44 (0) 845 010 9000.

How quickly will I be notified on my EORI number?
In most cases the EORI application will normally be processed within one to three working
days of receipt by the EORI team. It will take a further day to update our CHIEF and EU
EORI systems. You will be notified of your new EORI number and you will be able to use
your EORI number within 24 hours after receiving this notification.

Please Note : We strongly recommend that you submit your EORI application well in
advance of when you wish to use the EORI number to avoid delays at import or export.

Further details about EORI can be found on the HMRC website EORI Scheme Home Page.
In particular the ‘Frequently Asked Questions’ section will be of assistance.

How do I make an export declaration?
You may make a full or simplified export declaration. A full declaration should be in the form
of an electronic declaration under the National Export System (NES) or in exceptional
circumstances e.g. a traveller, may submit a manual Export Safety and Security (ESS) form
for Customs to input.

A simplified declaration, using either the local clearance procedure or simplified declaration
procedure, must be made electronically under NES into our central computer, CHIEF
(Customs Handling of Import / Export Freight). Both of these procedures require prior
authorisation by Customs (see below).

There are other simplified procedures that do not require prior authorisation by Customs.
These are the low value and non-statistical procedures. These should be made
electronically quoting the appropriate Customs Procedure Code. Normal rules concerning
obtaining Permission to Progress (P2P) still apply.

National Export System (NES) Export Declarations
In support of the Government’s initiative to develop electronic services, all exports must be
captured electronically on CHIEF. Details about NES can be found on our website, including
NES Technical Information.

Export details are collected through the submission to Customs of EU coded data. This is
captured on the Customs mainframe computer system, CHIEF, and may be submitted via a
variety of electronic routes. Exporters may choose from Email, Web, XML, CSP or Customs
Input to make declaration (see below).

Once the goods have arrived at an approved frontier location an arrival message is sent to
CHIEF. The data is then processed and, providing the goods are not selected for
examination or any further checks, the goods will receive Permission to Progress. This
positive method of control can avoid some goods being loaded in advance of shipment.

What are Single Authorisation for Simplified Procedures (SASP)?
SASP enables an exporter to be authorised for simplified export procedures in one Member
State (MS) for all their non-EU freight operations throughout the Community. This enables
economic operators to make export declarations in the authorising MS, although movement
of goods takes place in another.


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This approach has not proved possible for trade statistics which continue to be a national
requirement and not covered by the SASP.

For UK based authorisations the National Export System (NES) is used for making customs
declarations. NES is also used for the submission of UK statistical declarations for
authorisations based in other Member States.

When are the declarations made?
Occasionally, at the time of export, all the details for the consignment may not be available.
Sometimes goods need to be shipped at short notice, traders who handle this type of
consignments may be authorised to submit abbreviated details to CHIEF and then supply
the final, correct details within 14 days of shipment. This is called Simplified Declaration
Procedures (SDP).

Some exporters find that being able to control their exports from their own premises suits
their business needs better. Exporters may therefore be approved to operate under Local
Clearance Procedures (LCP).

If you wish to be considered for either SDP or LCP an application on form C&E 48A should
be submitted to Customs. This can be downloaded from our website. Most SDP and LCP
declarations also require supplementary declarations and the conditions of your
authorisation should be fully discussed with your control officer before final approval is given.

If all details concerning the export are available before shipment then they should be
declared on a full export declaration. In these circumstances, a post shipment
supplementary declaration will not be required.

Exceptionally e.g. for travellers, a manual declaration C88 / ESS can be used (see CIP (09)
09). A completed manual ESS form is faxed to Customs for input to the CHIEF system. This
is only carried out at the National Clearance Hub so, at busy periods, delays may occur.
Customs have a 12 hour window in which to process manual submissions, subject to the
correct details being supplied. For this reason, most exporters employ freight agents to
complete the declaration on their behalf. If something in the electronic declaration sent to
Customs needs an explanation, we may still look to you as the legally declared exporter and
not the agent for clarification.

How is an export declaration made?
In advance of the electronic declaration, information may be given to freight agents in a
variety of forms. It is important to note that the only document that Customs will key
information from is the C88 / ESS form.

Once received, the details are sent via a variety of methods to CHIEF. These include:-

 Details sent via Community Systems Providers (CSPs). These are Customs
approved inventory systems that capture data for Customs to carry out their checks
on CHIEF.
 Other electronic routes – including Web form, Email and XML. Access to CHIEF is
gained by first obtaining a digital certificate and using passwords. Details can be
found on our website regarding these options.
 Customs inputting the declaration (CIE). This method may be subject to delays but
we aim to process the declarations within 12 working hours subject to the paperwork
being correct.


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CHIEF therefore offers a standard validation process across the UK and, immediate
clearance for export can usually be achieved within seconds of the data being transmitted.

What details need to be declared?
Customs require various data for their records. The absence of required data will produce a
series of electronic messages to guide the declarant through their entry making process.

Details submitted will include the origin of the goods, the country to which the goods are
being sent, commodity codes, Customs Procedure Codes and values. The most important
piece of information is the Unique Consignment Reference. Safety and Security information
must be supplied within the export declaration.

Declaration Unique Consignment Reference (DUCR)
The UK is a world leader in the use of Declaration Unique Consignment References (DUCR)
which are mandatory for all electronic declarations. The DUCR is the means by which you
and Customs can identify your goods to your records, especially when using SDP or LCP. If
a DUCR is not provided by the declarant, one will be assigned by CHIEF. The DUCR
consists of up to 35 (alpha / numeric) characters and is split into four parts. It is based on the
World Customs Organisation Standard.

By quoting the DUCR at various freight locations, CHIEF is able to record the movement of
consignments. As goods arrive at a port or airport an arrival message is sent to CHIEF by
approved loaders quoting the DUCR. For direct export movements, i.e. goods shipped from
the UK and not sent via the EU, a Goods Departure Message will also be required.

The Declaration Unique Consignment Reference is made up using the guide below:

 1st part – the year in which the DUCR was allocated
 2nd part – the country code for the country in which the DUCR was allocated (GB)
 3rd part – the identity of the authorised trader (we are using the EORI number)
 4th part – a dash (hyphen) followed by a unique series of characters which provides
an audit trail within their commercial records. For air consignments the Airway Bill
reference is often used and, for other consignments, the fourth part often relates to
the export invoice number. The easier it is to cross reference numbers at audit
assists with granting VAT zero rating and export refunds.

In addition, to allow several export declarations to have the same core Declaration UCR
(DUCR) as well as providing a check letter calculation facility (to prevent miss-keying), a
further optional field of 4 characters has been created.

If a DUCR is used on an entry under the SDP or LCP procedures the same reference must
be used on the Pre-shipment advice and its matching Supplementary Declaration.

WCO Recommendation for DUCR
Where a consignment consists of more than one DUCR, CHIEF allows exporters to
amalgamate these references under a Master UCR - (MUCR). Details of the format of
MUCRs can be found on our website.

What is a Commodity Code?
The Commodity Code for exports is an eight-digit number which equates to a description of
the item. No matter how diverse or obscure, all goods will have a unique code number. A


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commodity code is required on all full export declarations and may be required on certain
simplified procedures. It is to be entered in box 33 of the declaration.

All Commodity codes can be found in the Tariff, Volume 2. There is also an electronic
version of Volume 2 of the Tariff available via the Business Link website, which is updated
on a daily basis. More information on this is available at the beginning of Section iii of this
guide under UK Trade Tariff.

If, after having studied the Tariff you are unable to identify the correct commodity code for
your product, you can contact the Tariff Classification Service on +44 (0)1702 366077,
between 9.00 and 17.00 Mondays – Thursday, 9.00 and 16.30 on Fridays (excluding Bank
Holidays). Alternatively you can apply for a written Binding Tariff Information (BTI) decision.
You can request a BTI application form by phoning the Tariff Classification Service or you
can complete and submit the electronic version by registering for a PIN and Password via
the Government Gateway at http://www.gateway.gov.uk/ and following the instructions given.

See also Notice 600 Classifying your Imports or Exports.

What is a Customs Procedure Code (CPC)?
The CPC describes the procedure and / or economic regime under which the goods are to
be exported. It is required on all export declarations whether using an electronic or
exceptionally a manual export declaration. It is to be entered in box 37 of the declaration or
in the relevant data field. A list of procedure codes for exports can be found in Appendix E1
of volume 3 of the Tariff.

In addition to a straightforward sale to a customer overseas, there can be a number of
reasons why goods are exported. Examples include –

 Goods going out on long-term loan / hire, to be returned eventually,
 Goods being temporarily exported for a repair to take place
 Goods being re-exported after processing by a UK / EU country.

Goods being exported temporarily may be eligible for a relief from duty when they are
subsequently reimported to the UK / EU – as long as they were exported under outward
processing relief (OPR) using a CPC in the 21 series. Unless you are using the simplified
repair system, you will require prior authorisation to use OPR. If the Goods being exported
will be Duty free at re-import, you do not need to use OPR – and should export the Goods
using CPC 22 00 000. Similarly, goods re-exported after processing by a UK / EU trader
must use the appropriate CPC to notify Customs otherwise the relief may not be allowed.
More information on OPR can be found in Section V of this guide.

A CPC declaring a straight forward, UK originating export is important if you are VAT
registered as this forms part of your official evidence to support zero rating of the
transaction.

The Tariff (Volume 3) contains the full list of CPC's for the various export options. Once you
have established the correct one, it is unlikely to change for the year.

Updates to the Tariff will include any procedural changes to the requirements to CPCs and a
correlation table showing the old CHIEF format and the revised SAD H CPC formats.


Section iii

Are there any export taxes?
Currently there are no export taxes, duties or levies in force on goods being exported from
the EU. Please note that the EU Commission may impose export taxes on certain CAP
goods at very short notice. This can occur for various reasons, but is most likely to happen
at times of shortage of particular products, e.g. due to a poor harvest, etc. When this
happens, Customs and the RPA will issue joint publicity advising Exporters how to declare
their goods and account for the tax due. However, you should be aware that there may be
import duties to pay in the country of destination. To find out what may be required by the
Customs Authority in the country of destination, we would suggest you contact either the
Embassy or High Commission representing the country to which you are exporting, or
Department for Business, Innovation and Skills Overseas Desks in London.

Any goods re-exported from the UK must be identified and properly declared. This will
include goods that have been previously imported to be worked on or repaired and that are
now being re-exported from the EU. There is a series of Customs Procedure Codes (CPC) in
the Tariff. Volume 3 contains export CPC codes’, including re-exports and these procedures
must be adhered to at the time of re-export as post shipment amendments may render the
goods liable to the original, suspended import duties.

What if my goods don't go directly from the UK to outside the EU?
For Customs purposes goods, which leave the Community via other Member States, are
known as “indirect exports”.

The following example shows a typical indirect export:-

 a truck is packed with goods in the UK with Russia as the final destination,
 the truck drives to Newcastle to board a ship docking at Gothenburg (Sweden),
 following arrival in Sweden (EU), the truck travels to the Swedish / Finnish border,
 at this border the truck passes through into Finland (EU) and onto the Finnish / Russian
border,
 the truck drives into Russia.

From this example it might appear that the export of the goods is taking place at the Finnish
/ Russian border – the EU and non-EU border. Physically the truck driver drives over that
border and the goods are deemed to have entered Russia. But in fact the place of export is
Newcastle. This means that the electronic export declaration must be submitted in the UK
and the goods made available for inspection by Customs. CHIEF will process the electronic
declaration and, grant Permission to Progress and release the goods for loading on the ship.
The goods then travel to the Finnish / Russian border where their exit is supervised by the
Finnish Customs. Production of an Export Accompanying Document (EAD) will be requested
at the Office of Exit to confirm export formalities have previously been complied with in the
UK. EAD (Using RAD code) can be produced electronically from CHIEF, prior to export from
the UK.

The export formalities completed in the other Member States, now allow the goods to travel
to a UK Office of Exit. At a UK Office of Exit e.g. Heathrow, the EAD from the ECS system
will be presented along with an electronic C21 entry (IECR under SAD H). The EAD is
endorsed on the reverse with the CHIEF entry number and then forwarded to the ECS
Helpdesk in Harwich. The ECS Helpdesk scan the bar-coded Movement Reference Number
and an electronic message is sent back to the Office of Export in the originating Member
State, completing the export procedure.


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From July 1 2009, under ECS1b, the UK started to issue EADs at export. Further details can
be obtained from our website.

Can I personally take goods directly to the customer?
You may wish to personally take your goods to a prospective customer based outside the
EU. As you are hoping to sell the goods, this is still a commercial export. You will need to
declare that export at your port / airport of departure. This type of export is called
Merchandise In Baggage (MIB). You must take the goods and declaration to the MIB Officer
at the Port / Airport from which you are leaving. The entry may be in the form of a manual
C88 / ESS or a screen dump of an electronic entry to CHIEF. In order to verify the export,
the officer may need to see both the declaration and the goods. See Notice 6 Merchandise
in Baggage, for specific details. You should allow extra time if you are travelling with
MIB so that any formalities can be dealt with before you depart.

For MIB exports which,

 have a value of less than £600, and
 weigh less than 1000 kg, and
 do not require an export licence, and
 are not subject to export duties or export levies when in force, and
 are not restricted,

there is a "low value goods procedure" available. This procedure can be used for both MIB
or freight exports and you can complete either a C88 / ESS, use your commercial invoice or
make an electronic declaration. See Notice 275 Export procedures, for specific details.

Do I have to keep any documents?
For any commercial export you will need to keep your records for six years from the date of
export. This is the required period for VAT purposes. If this will cause problems, please
contact the VAT, Excise & Customs Helpline on +44 (0)845 010 9000.

Authorised Economic Operator (AEO)
The EU have been considering ways to raise safety and security standards within the
international supply chain of goods to address the challenges of terrorism and to help protect
EU borders and citizens.

The EU has developed the Authorised Economic Operator (AEO) scheme based on the
World Customs Organisation SAFE Framework and in response to arrangements such as C-
TPAT for imports into the USA. Benefits to those meeting the criteria include faster
clearance times and preferential treatment at the EU border amongst others. More benefits
will be available in the future when mutual recognition agreements are in place with 3rd
country trading partners (early 2010) and when the Modernised Customs Code
Implementing Provisions take effect (2013).

HMRC are accepting applications from eligible businesses – those that are involved in trade
with countries outside of the EU and operate under customs legislation. This can include
importers, exporters, freight forwarders, warehouse keepers, port operators, etc.

More detailed information on AEO can be found on the HMRC website under the Imports
and Exports section, under International Trade Developments or alternatively go to the
Business Link website which provides you with :


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 the ability to complete the AEO application form and questionnaire on-line with
supporting guidance and help text; and

 an interactive AEO tool “Access your readiness for Authorised Economic Operator
status” is available to assist you in this area.

Further Information
Following the introduction of the National Export System (NES) new exporters are
encouraged to look at details on our website, to a host of NES related documents.

Contact with the Unit of Expertise (UoE) for Exports may also help resolve export related
problems. The UoE may be contacted through the VAT, Excise & Customs Helpline on +44
(0)845 010 9000.

Information contained in the website may also refer to specific types of exports for which
agreements have been made with the trade.

Further information on exports is available in the following Notices:

Notice 6 Merchandise In Baggage.

Notice 117 Authorised Economic Operators.

Notice 60 The Intrastat General Guide. This explains the movement of goods to other EU
countries.

Notice 143 A Guide to International Post Users.

Notice 235 Outward Processing Relief.

Notice 266 Rejected Imports, repayment / remission of duty and VAT.

Notice 275 Export Procedures. (This notice incorporates former Notice 276 National Export
Procedures (NES))

Notice 502 A Brief Guide to Export Procedures.

Notice 600 Classifying Your Imports or Exports.

Notice 703 VAT: Exports of Goods from the United Kingdom. This is a VAT notice and
explains the VAT aspects of exporting.

The Transit Manual on the European Commission website.

The Transit Manual Supplement provides guidance on transit procedures in the UK and can
be found within the Imports and Exports section of the HMRC website.

Business Link website
The Business Link website brings together previously fragmented and disjointed information
from government and trade associations into 196 plain English easy to understand guides
and 8 interactive tools which guide users through the complexities of trading internationally.


Section iii

Am I likely to need an export licence?
An export licence may be needed for a wide range of goods. These include live animals,
animal products, endangered species and cultural goods such as antiques over 50 years
old. Also there are licensing controls on military, dual-use and cultural goods and controls on
the export of ozone depleting substances, are also to be considered. A CAP licence will
probably be required whenever export refund is being claimed (see below for more details).

How do I know if I need a licence?
You should always check with the various Other Government Departments (OGDs) as to
whether a licence is required.

What types of licences are there?
Licences may be issued in electronic or paper form or concessions may be granted to
exporters under various Open licences.

These may be open general licences where exporters may export any quantity of specified
goods to specified destinations. Open individual licences may be granted to regular
exporters of licensable goods to agreed consignees. Additional conditions may be set out on
the licence.

The appropriate document code (as set out in Appendix C11 of the SAD Harmonised Tariff)
followed by the licence type and number must be declared in box 44 of the customs
declaration. Paper licences must be presented to HMRC’s National Clearance Hub (NCH) in
Salford.

With the development of electronic services various OGDs are linking their computer system
into CHIEF. This will avoid the manual handling of paper licences and also allows exporters
to export goods from the UK at various locations at the same time. Where an OGD interface
with CHIEF is in place, CHIEF holds details of OGD licences and will validate licence data
transmitted to CHIEF against information entered on the Export declaration and will
automatically update those licences controlled by quantity. The first OGD to link to CHIEF
was the RPA followed in April 2008 by BIS Export Control Organisation (ECO). BIS’s online
Export Licence Application System SPIRE controls the issue of Standard Individual Export
Licences (SIEL’s), Open General Export Licences (OGEL’s) and Open Individual Export
Licences (OIEL’s).

Customs process licences and enforce the controls created by the OGD legislation. If a
licence is required and is not presented / quoted, the goods may be seized and the exporter
and / or his agent liable on conviction to a penalty of three times the value or the goods or
£1,000 if greater. Deliberate breaches of the regulations covering export prohibitions and
restrictions can result in prosecution, with a maximum penalty of seven years imprisonment,
ten years in the case of BIS export licences and an unlimited fine.

Further information on export licensing is given below:

 Common Agricultural Policy (CAP) Licences are usually needed for the export of
agricultural produce, whether as raw materials or processed products. They are
issued and controlled by the Rural Payments Agency (RPA) and policed by the
HMRC National Clearance Hub, in conjunction with UKBA. The RPA will be able to
tell you if a licence is required. Their general contact number is +44 (0)191 226 5050,
or visit the RPA website.


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An export licence is mandatory if you are exporting certain products. If a licence is
required and is not presented at the time of export, the consignment will not be able
to leave. It is worth remembering that CAP goods declared for one country of
destination may need a licence, whereas the same consignment going to another
country may not.

If you wish to claim a CAP export refund, there is an option available to advance fix
the refund against the issue of a particular type of export licence. The RPA can tell
you more about this.

 Department for Business, Innovation and Skills (BIS) export Licences are
needed for the export of :

 Military, security and paramilitary goods, firearms, ammunition, related material
and explosive related goods to all destinations, including other EU Member
States;
 Radioactive sources to all destinations, including destinations within the customs
territory of the Community;
 Dual-use goods (a wide range of civil goods that can have a military application)
to destinations outside the customs territory of the Community;
 Very sensitive, or nationally controlled, dual-use goods to all destinations,
including destinations within the customs territory of the Community;
 Goods that you are aware, or have been informed, may be for use in connection
with chemical, biological or nuclear weapons or their means of delivery systems
(missiles, UAV’s, aircraft);
 Specific additional goods to certain destinations, covered by sanctions orders.

Many less sensitive goods to less sensitive destinations are covered by open general
export licences. You can contact BIS on the export licensing helpdesk on
eco.help@berr.gsi.gov.uk, or visit the BIS website.

 Department for Environment, Food and Rural Affairs (DEFRA) Licences cover
fertilisers, animals and animal products, and endangered species and are issued and
controlled by DEFRA. If a licence is required and not presented with the export, the
goods will not be able to leave. Current controls also involve the export of ozone
depleting substances (see DEFRA website).

If you are intending to export Fertiliser, DEFRA are able to provide an export
certificate to support your product overseas. Further information is available from the
DEFRA Website.

DEFRA will be able to advise if a licence is required. Their general contact number is
+44 (0)20 7238 6951 or +44 (0)845 933 5577 or visit the DEFRA website. EU
legislation also prohibits the export of cat and dog fur and any products that contain
such items.

 Department for Culture, Media and Sports (DCMS) Licences issued by the
Museums Libraries and Archive Council, are required for the export of certain
valuable heritage items (works of art, antiques and collectors’ items etc), from the
UK.

More information on export licensing for cultural goods is available from the
Museums, Libraries and Archive Council website.


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If a licence is required and is not presented / quoted, the goods may be seized.
Deliberate breaches of the regulations covering export prohibitions and restrictions
can result in prosecution, with a maximum penalty of 7 years imprisonment and an
unlimited fine.

 Health and Safety Executive (HSE) controls.
The export of certain chemicals may require export notification, or Prior Informed
Consent (PIC) from the country of destination. Other chemical Exports may be
prohibited outright.

You should contact the HSE before you export explosives. More information on
movements of civil explosives – whether import, export, or movements within Great
Britain is available form the HSE website.

You can contact the HSE Information Line on +44 (0)845 345 0055, or visit Export
and Import of dangerous chemicals (PIC) on the HSE website.

 Environment Agency controls
Environment Agency is the UK competent authority for enforcement of Trans-frontier
Shipment of Waste (TFS) legislation applying to export of waste shipments for
disposal, recovery or recycling etc. Such consignments can require notification or
consent procedures and some categories of waste are subject to export prohibitions.

You can contact the Environment Agency TFS helpline on +44 (0)1925 542265 or
email NATTFS@environment-agency.gov.uk or visit the International shipments of
waste page on the Environment Agency website.

When will I need a Kimberley certificate?
The export of rough diamonds from the EU requires an original Kimberley Certificate to
travel with the goods. Original certificates must be presented on import when requested.
Failure to do this may result in the diamonds being detained or seized, and losing their
conflict-free status under the Kimberley Process.

You can contact the Government Diamond Office at the Foreign and Commonwealth Office
on +44 (0)20 7008 6903 / 5797 or via email GDO@gtnet.gov.uk or visit the FCO website and
enter ‘Government Diamond Office’ in the search engine.

When will I need a Catch Document?
The exports of all types of Dissostichus species of fish (sometimes known as Patagonain
Toothfish or Chilean Seabass or Antarctic toothfish / Antarctic Cod) require Catch
documentation.

You can visit the CCAMLR (Convention on the Conservation of Antarctic Marine Living
Resources) website.


Section iii

What are Export Preferences?
In order to help the export trade of the EU, trading agreements with certain countries have
been set in place. These allow originating exports from the EU to enter the destination
country at a reduced or nil rate of duty. These arrangements are not in place with every
country – the destination country has to be a signatory to these agreements. See Notice 812
European Community Preferences: Trade with Turkey, Notice 827 European Community
Preferences: Export Procedures, Notice 828 Tariff Preferences – rules of origin for various
countries including Albania and Notice 832 Tariff Preferences – rules of origin for Mexico for
further details.

What is meant by the "origin" of the product / goods?
In order for exported products to qualify, they must have EU preferential origin and therefore
have met the required origin rule.

The rules vary according to the product and the preferential trade agreement concerned.
They require either that the product is wholly produced in the preference country or that it
has been manufactured there in accordance with particular rules. More guidance on the
specific rules can be found in Notice 812 European Community Preferences: Trade with
Turkey, Notice 827 European Community Preferences: Export procedures, Notice 828 Tariff
Preferences – rules of origin for various countries including Albania and Notice 832 Tariff
Preferences – rules of origin for Mexico.

What evidence is required?
There are two different ways to declare preferential origin. The most commonly used is an
EUR 1 Certificate. Detailed guidance on how to complete a Certificate is contained in Notice
827 European Community Preferences: Export Procedures.

There is also a facility to use a declaration on the invoice with a legally approved form of
words as an alternative. This can either be a low value declaration available to any exporter
or one for Approved Exporters where no value limit applies. Notice 827 European Community
Preferences: Export Procedures provides specific information relating to the facilities
available for exporters to each country.

What happens to my EUR1 once it has been completed?
EUR1 Certificates have to be stamped prior to being despatched to your overseas customer.
They can either be sent to the National Clearance Hub (NCH) at Salford, or be stamped by
your local British Chambers of Commerce or the Institute of Chartered Shipbrokers.

When an exporter presents an EUR1 for authorisation, the accuracy of the claim may be
checked by Customs, the Institute of Chartered Shipbrokers or the British Chambers of
Commerce who have been appointed by Customs to issue certificates on their behalf.

They may ask for evidence when the certificate is actually submitted in order to ensure the
Origin Rules have been adhered to. Customs may also be required to verify origin up to three
years after the issue of the certificate by the receiving country, so you are required by law to
retain any evidence you may hold for at least that period of time.

What if an error is made?
If a request for verification from the authorities in the receiving country is made, and it is
found that the goods were not entitled to preference, Customs have to report this fact to the
authority. This will result in your customer having to pay the full customs duty, which in turn
could affect your future trade.

Also, there is the possibility of a penalty being imposed, so it is important that you ensure
prior to export that certificates are issued only when all the conditions are met.

Section iii

What happens if documents are lost?
If an EUR 1 is lost, destroyed or stolen, a duplicate can be issued from the office where the
original was authenticated. You need to apply in writing stating why you need a duplicate.
You need to supply a copy of the invoice and any supporting evidence. The duplicate will be
issued with the same date of issue of the original – it will therefore have the same period of
validity.

What if a preference document is not issued at the time of export?
Exceptionally a retrospective EUR 1 can be issued. Your customer will have to put the full
amount of duty on deposit until the Certificate arrives.

What if I act as an intermediary – obtaining goods from one party for supply to another?
You may decide to buy materials / products from another firm in the EU to include in your
final product to be exported to a customer in a preference-giving country. If this is the case,
then you need the assurance that these bought-in materials / products are of EU preferential
origin. Failure to obtain this would mean that such materials will be regarded as non-
originating.

This assurance must come from your supplier. They need to furnish you with a "Suppliers
Declaration" – this is a form of words, declaring their products meet the appropriate rules of
origin.

This declaration can either be a one-off or a "long term" declaration (twelve months
maximum). You should not attempt to count such materials / products as originating, unless
you have such a Supplier's Declaration in place.

Notice 827 European Community Preferences: Export Procedures, gives additional guidance
on the issue / use of Suppliers Declarations and the latest version January 2007, is available
on our website.

Notice 828 Tariff Preferences – rules of origin for various countries including Albania, is
available on our website, latest version September 2007.

Notice 826 Tariff Preferences: Imports, is available on our website, latest version December
2007.


Transit Systems
Section iv

What is Community Transit (CT)?
Community Transit is a customs procedure that allows goods that are not in free circulation,
(and in certain cases, Community goods) to move between two points in the EU (including
two points within a single Member State) with the Customs duties and other charges
suspended. The procedure is also used to control the movement of certain goods to and
from Andorra, San Marino and the “special territories” of the Community (such as the
Channel Islands).

The Community transit procedure is extended to the European Free Trade Association
(EFTA) countries (Iceland, Norway, Liechtenstein and Switzerland) by an agreement known
as ‘The Common Transit Convention’. Goods moving under transit to, through, from or
between these countries travel under common transit legislation.

Status of the goods
Goods are divided into two categories:

‘Non-Community goods’ are goods that do not wholly originate in the EU and are therefore
liable to Customs duty and / or other changes. These goods are not in free circulation whilst
in the EU and need to be identified and controlled to ensure that either the duty is paid or the
goods are re-exported.

The external CT procedure (T1) allows goods not in free circulation to move between two
points in the Community.

‘Community goods’ are goods that wholly originate in the EU and are therefore free of
Customs duty or goods imported from outside the EU on which all import formalities have
been completed and duties paid. Community goods are described as being in ‘free
circulation’. They do not therefore normally require CT declarations or evidence of
Community status to move within the EU. Goods arriving in one EU member state direct
from another are regarded as Community goods in the absence of any evidence to the
contrary.

The internal CT procedure (T2) may be used for Community goods moving:

 From one point to another within the EU via a Common Transit country
 From an EU member state to a Common Transit country
 To or from San Marino, (except for goods in HS Tariff chapters 72 & 73)
 To or from the Principality of Andorra and are in HS Tariff chapters 25-97.

The internal CT procedure (T2F) is required for the movement of Community goods to or
from ‘special territories’ which includes the Channel Islands except for direct movements
between the UK and the Channel Islands, where simplified arrangements apply.

What is the New Computerised Transit System (NCTS)?
The New Computerised Transit System (NCTS) is a European wide system, based upon
electronic declaration and processing. It involves all Member States and the Common
Transit countries.

Since the NCTS became mandatory on 1 July 2005, paper transit declarations can only be
accepted in, the following circumstances :

 Traders moving goods directly between the UK and the Channel Islands under
simplified arrangements using commercial documentation;

Version 28 – October 2010 52 Section (iv)
Transit Systems

Transit Systems
Section iv

 Private travellers carrying goods in excess of personal allowances; and
 Where use of the fallback procedures is appropriate.

NCTS is not required for :

 Traders who are approved to use the air, sea, rail, large container and pipeline
simplifications;
 Traders who are approved to use UK national simplifications where the goods are
moved under the control of an electronic procedure solely within the UK;

Each national administration has developed its own NCTS processing system. They are
connected, through a central domain in Brussels, to all the other Member States and
Common Transit countries.

The UK, like many other national administrations uses the Minimal Common Core (MCC)
software developed by the European Commission, which provides all the basic data capture
and messaging functionality for effective connection to the European network.

Combined Community Transit / Safety and Security (S&S) Declarations
The EU Commission have provided an upgrade to the NCTS for a combined Community
Transit / Safety and Security declaration which became available from the 1 July 2009.

We anticipate that there will be very few instances in the UK where traders will be required
to present the S&S data in a combined CT or TIR declaration on the NCTS. We believe this
would only occur in cases where goods are being moved via a third country to a customs
office of destination in another Member State.

The EU has negotiated a derogation with both the Swiss and Norwegian governments which
negates the need to provide S&S data for goods transiting their territory.

How can I submit NCTS declarations?
To submit electronic transit declarations you must have access to a computer and an
Internet connection. If you wish to be authorised to have your Transit Accompanying
Document (TAD) and List of Items (LoI) printed at your designated premises you will also
need a laser printer capable of printing the declaration barcode in the required format.

In the UK there are three access routes to NCTS:

 E-mail via Electronic Data Capture Services (EDCS)
 HM Revenue and Customs NCTS web channel
 NCTS XML (Extensible Mark-up Language) declaration channel

E-mail via EDCS
To use the e-mail service, you must be able to make declarations to the NCTS by Electronic
Data Interchange (EDI) and to exchange the necessary messages with the system. You also
need specialist software to construct and translate the messages that the NCTS requires.
The e-mail route can process up to 999 items per declaration.

HM Revenue and Customs NCTS web channel
To use the web service you need a UK Economic Operator Registration and Identification
(EORI) number and a UK postcode. You must register for a Government Gateway account
and then enrol for online service. The web-based route can process up to 99 items per
declaration.

Transit Systems

Transit Systems
Section iv

NCTS XML (Extensible Mark-Up Language) declaration channel
To use the XML service you must register for a Government Gateway account. You will also
need to purchase or develop your own XML wrapping tool for delivering of messages direct
from your organisation, or use a service provider that will perform the XML wrapping on your
behalf.

Location of the goods
Unless you are an Authorised Consignor or Consignee, there are two distinct types of
location where the goods must be made available to Customs at departure and destination :

 Customs offices and
 Approved Customs sub-places

A list of UK Customs sub-places appears in the UK Integrated Tariff Volume 3 Appendix C.

If you are an Authorised Consignor or Consignee, you may designate the premises where
you will make the goods available to Customs.

What are the control procedures?
All transit movements are the responsibility of a “Principal” who is the person or company
who undertakes to ensure that the goods are delivered to the office of destination or
approved customs sub-place within the prescribed time limit. The Principal must usually put
up a guarantee to secure the relevant duties and other charges in case the goods do not
arrive intact at the office of destination.

The guarantee can be individual (covering a single operation) or (for approved principals)
comprehensive. An individual guarantee can be cash (lodged at the office of departure), or
vouchers (purchased from a guarantor such as a bank or insurance company).

To start a transit movement the trader inputs an electronic declaration to the NCTS.
Customs at the office of departure may prescribe an itinerary and will set a time limit for
presentation of the goods at the Customs Office of Destination or to an Authorised
Consignee. Customs at departure may also seal the goods. The computer system at the
office of departure will generate a Transit Accompanying Document (TAD), and will send an
electronic Anticipated Arrival Record to the Office of Destination. Traders may be approved
to generate the TAD at their own premises.

The Transit Accompanying Document (TAD) must travel with the goods. Where goods are to
transit a non-EU country during a CT operation, an office of transit will control the movement
at the point of exit and re-entry to the EU. The TAD must be presented at each office of
transit noted on the declaration. The results of any checks are noted on the NCTS before the
operation is allowed to proceed to the office of destination.

The TAD and the goods must be presented to customs at the office of destination / customs
sub-place. Customs at destination will input an arrival message to the NCTS, control the end
of the transit operation and record the results of the controls on the NCTS. A message is
sent back to the office of departure and if the control results are satisfactory the transit
operation is discharged.

If the control results are not satisfactory or if they are not received within the time limit the
Principal is contacted and asked to provide proof that the procedure has ended correctly. If
proof is not provided the enquiry procedure is initiated to recover the potential debt.

Transit Systems

Transit Systems
Section iv

What is simplified transit?
There is a range of transit simplifications available for use by compliant and reliable traders.
These include:

 Use of a comprehensive guarantee, or guarantee waiver
 Use of seals of a special type
 Exemption from a prescribed itinerary
 Authorised Consignor status
 Authorised Consignee status
 Procedures specific to certain modes of transport (goods carried by rail or large
container, air, sea, pipeline)
 Other national or bi-lateral simplifications based on Art 97 of the Community Customs
Code / Article 6 of the Common Transit Convention

These simplifications are subject to authorisation by the National Simplifications Team at the
Central Community Transit Office (CCTO) in Harwich.

Further Information
Further information on transit procedures can be found on the HMRC website under the
Community / Common Transit and TIR section, under the Imports and Exports section.

Further details about transit can be found in The Transit Manual on the European
Commission website.

Guidance on transit procedures in the UK is provided in the Transit Manual Supplement
found within the Imports and Exports section of the HMRC website.

More detailed information on Community transit simplifications and various aspects of the
NCTS, including fallback can be obtained by contacting :

HMRC NCTS helpdesk at UK Central Services (UKCS), Harwich
Monday to Friday 08:00 – 17:00
Tel : +44 (0)1255 244709.

Community status documents
Community status documents have no transit function but are required where the
Community status of the goods needs to be proved e.g. where the goods are moving from
one EU member state to another, via a third country (other than a Common Transit country).
There are various documents that can be used to prove Community status. These include :

 a T2L (copy 4 or 4/5 of the SAD);
 a commercial document such as an invoice or a transport document or a shipping
company’s manifest;
 a T2LF where proof of Community status is required for goods consigned to or from
the special territories;
 a T2M form to prove the Community status of sea fishing products caught by
Community fishing vessels in certain circumstances.

Documents used to prove Community status have to be authenticated by customs (except
for commercial documents where the value of the goods does not exceed EUR 10 000). The
documents may be issued retrospectively.

Transit Systems

Transit Systems
Section iv

If you use status documents on a regular basis you can become an authorised consignor for
Community status purposes. Otherwise, if your T2L/T2LF status document requires
authentication, it must be sent, with a stamped self-addressed envelope, to Salford National
Clearance Hub (NCH) at the following address :

HMRC
The National Clearance Hub
Custom House
Furness Quay
Salford
Manchester
M50 3XN
Tel : +44 (0)161 261 7000 (Main Office)

A full list of documents and rules used for providing Community status and guidance on the
use of Community status documents can be found in the Transit Manual.

Transports Internationaux Routiers (TIR)
TIR is an international Convention that provides for goods to move across one or more
international borders with minimal customs interference. The movement must essentially be
by road to, via and from European countries and some North African and Asian countries.
However, for the purposes of TIR, the European Union is regarded as a single territory. TIR
cannot be used to move goods between Member States of the EU unless they go via a third
country.

Anyone who has travelled on European roads may recognise the familiar blue and white TIR
plates affixed to thousands of lorries and trailers using TIR.

TIR can be operated in fifty-six countries, all of whom have signed the Convention on the
International Transport of Goods under cover of TIR Carnets. Goods that are moved under
TIR can pass to and through these countries with any customs duties and other taxes under
suspension and without the need for unloading / reloading at international frontiers.

With effect from 1 January 2009, traders who move goods under the cover of a TIR Carnet
are now required to submit a TIR declaration to the NCTS for that part of the journey within
the territory of the European Union. The NCTS will generate the Transit Accompanying
Document (TAD) which will be affixed to the TIR Carnet.

It is important to note that the paper TIR Carnet remains the legal instrument and will be
required to be presented along with any accompanying documents, the vehicle and the
goods.

There are five main principles to the TIR system:

 Access to the system is controlled by the national guarantee associations and
customs authorities. In the UK operators must apply for authorisation to use TIR
Carnets to one of the two national guarantee associations – either the Freight
Transport Association (FTA) or the Road Haulage Association (RHA);
 The goods must be listed on, and accompanied by, an internationally recognised
document, the TIR Carnet. The Carnet is taken into use in the country of
departure and serves as the control document in the countries of departure, transit
and destination;
 The duties and taxes at risk are covered by an internationally valid guarantee;

Transit Systems

Transit Systems
Section iv

 The goods must travel in approved secure vehicles and containers; and
 Customs control measures taken in the country of departure should be accepted
by the countries of transit and destination.

Procedure at the Office of Entry into the Community
The TIR carnet holder or his / her representative is responsible for lodging the TIR carnet
data in the computerised system (NCTS). The Carnet travels with the goods and is
presented to Customs at the office of entry into the Community.

Customs at the office of entry will :
 Check the vehicle / container and approval certificates as appropriate;
 Check the seals; and
 Check that Box 22 of Voucher No. 1 contains the name of the office of destination.

The officer will then :
 Complete the relevant details on the next pair of vouchers 1 and 2;
 Remove Voucher No 1 (white) from the carnet and complete the corresponding
counterfoil; print out an Office Copy TAD, attach it to voucher no 1; and
 Return the carnet to the holder or representative.

Procedure at the Office of Destination
The principal (or his / her authorised representative) present the goods, the vehicle, the TIR
carnet and the TAD to Customs at the office of destination or to an EU authorised consignee
approved to receive TIR consignments.

At the office of destination, Customs will :
 Check that the seals are intact and – unless an irregularity is found – endorse the
Carnet with the rectangular office date stamp;
 Use the MRN to retrieve the data from the NCTS system and send the appropriate
‘Control Results’ message to the office of departure; and
 Detach and retain Voucher No 2.

If the goods are delivered to an authorised consignee the officer will ;
 Check that the seals are intact and – unless an irregularity is found – send the
documents to the office of destination to be endorsed as above; and
 Use the MRN to retrieve the data from the NCTS system and send the appropriate
‘Control Results’ message to the office of departure.

Further details about TIR can be found on the HMRC website.

Transit Systems

An Explanation of Duty Relief Procedures
Section v

What are Duty Relief procedures?
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 to goods, if they are permanently or
temporarily imported under specific conditions and / or imported to a specific
location.
 Provide relief from duty and / or VAT for goods temporarily exported from and
returned to the EU.
 Delay the payment of import duty and / or VAT on your stocks of imported goods.

When might they be of use?
They can be used in the following circumstances:

 When you import goods temporarily for use, process, or repair within the EU.
 When you re-import goods which have been used, processed or repaired outside the
EU.
 When you return goods to a supplier outside the EU because they are damaged or
are not to the required specification.
 When you re-import goods returned by a customer outside the EU because they are
damaged or are not to the required specification.
 If you have difficulty at the time of import in meeting particular conditions (such as
certain import licensing requirements) or want to re-export non-Community goods.

What are the schemes?
There can be many different reasons why an import is made and there are various
procedures to fit specific circumstances, these include:

 Inward Processing Relief (IP)
 Outward Processing Relief (OPR)
 Returned Goods Relief (RGR)
 Temporary Admission (TA)
 Customs Warehousing (CW)
 End Use Relief
 Processing under Customs Control (PCC)
 Free Zones (FZ)
 Rejected Imports Relief
 Community System of Duty Reliefs (CSDR)
 Onward Supply Relief (OSR)

What is Inward Processing Relief (IP)?
IP provides relief in order to promote exports from the EU and assist Community processors
to compete on an equal footing in the world market.

If you import non-EU goods to be used in the processing of products which are intended to
be re-exported outside the EU, IP allows the customs duties to be relieved for the time
required for you to enter, process and dispose of the goods.

How does IP work?
There are two methods of IP, suspension and drawback.

Version 28 – October 2010 58 Section (v)

Section v

Under IP suspension customs duties are suspended when the goods are first entered to
the procedure in the EU. The duty liability is discharged when the goods are re-exported
from the EU or subject to another form of eligible disposal. However, if the goods are
released into the EU, import VAT will also become due and compensatory interest will be
charged on the duty suspended.

Under IP drawback, customs duties and import VAT are paid when the goods are entered.
The customs duty can be claimed back when the goods are exported and you may be able
to reclaim the import VAT as input tax. There are some restrictions on the type of goods that
can use IP drawback. The examples below, which are not exhaustive, include goods that are
subject to :

 quantitative import restrictions;
 Tariff measures;
 most CAP goods
 goods subject to an export refund or tax applies to a product that will be produced;

Do I need to be authorised to use IP?
Yes. There are a number of types of authorisation and you will need to consider which one
best suits your needs.

Most require you to make a prior application to HM Revenue and Customs using form C&E
810. Applications for authorisation usually take a month to process before you can import
any goods using the procedure.

If you only occasionally import goods for processing, and the operation is carried out entirely
in the UK, you can apply for a simplified authorisation on the C88 (SAD) entry at the point of
import. On your entry you will need to quote the appropriate IP CPC in the ‘51’ series for IP
suspension or the ‘41’ series for drawback.

If you use IP you will need to keep records with details of all imports, processing operations,
transfers and disposal of your goods entered to this procedure.

Further information can be found in the Tariff, Volume 3, Part 3, Notice 221 Inward
Processing Relief and Notice 221A Inward Processing Relief using a simplified
authorisation, which is available via the HMRC website.

What is Outward Processing Relief (OPR)?
Outward Processing Relief provides duty relief on imports from 3rd countries of goods which
have been produced from previously exported EU goods. When you re-import the goods you
may be able to pay import duty and VAT on a reduced value subject to certain conditions.
You should normally be the person arranging for the process / repair to be carried out but if
you are not you may be able to obtain specific authorisation to enable you to export and re
import the goods.

The processing work can range from the very simple through to involved manufacturing. In
some instances goods which have gone out for repair can be replaced instead under the
Standard Exchange System if it is not practicable to have the exported goods repaired.
However, the replacements must be of equivalent commercial value. Replacement goods
will also be subject to import VAT on the full value of the goods.


Section v

Dispatches in one consignment can be re-imported over a period of time in smaller amounts.
In addition, goods originally exported from the UK do not have to return to the UK – the re-
importation can be to another EU country.

How does OPR work?
Customs are required to check that the re-imported goods have been manufactured from the
items exported. In the case of repairs it is necessary to show e.g. by serial number, that the
part exported is the part returned. You will be required to keep adequate records to show
that the goods exported have been used in the re-imported product.

Do I need to be authorised to use OPR?
Yes, there is a Simplified authorisation which is applied for at the point of export, which can
be used if you occasionally need to export goods for repair. It cannot be used for any other
type of process (exceptionally replacement could be allowed).

Alternatively you can apply for the relevant authorisation by making an application to HMRC
on form C&E 1153 prior to exporting the goods. You will be issued with an authorisation
number to quote on all your OPR entries. You can make regular exports and the operation
can be anything from simple processing to involved manufacturing – on the application form
you state in detail what processes will be carried out on your goods.

Further details about OPR can be found in Notice 235 Outward Processing relief.

What is Returned Goods Relief (RGR)?
If you import goods that were previously exported from the customs union (the EU, Turkey,
San Marino and Andorra), then returned goods relief could be of use. The goods must be
reimported in the same condition as at export from the customs union, with no processing
having been carried out on them outside the union, apart from routine maintenance or
unforeseen running repairs.

How does RGR work?
RGR can be used for goods exported temporarily, which you know will eventually be
returned to you. In addition RGR can be used if your overseas customer needs to return the
goods i.e. they are broken or you have sent the wrong specification. You can also use RGR
if you purchase goods abroad which were exported from the customs union by others.

In all these situations HMRC would normally treat these as an import of non-EU goods and
therefore duty and VAT would be due. By declaring the consignment at import to RGR, you
can get total or partial relief from the import duty and in some cases the VAT, subject to
certain conditions.

Do I need to be authorised to use RGR?
In most circumstances you would not need to be authorised to use RGR. However to
support your claim for RGR, you must be able to prove to HMRC that the goods were those
originally exported from the customs union and establish their “duty status” at the time of
original export. If you did not export the goods, you will probably need to seek help from the
original exporter in getting this information.

More details about RGR can be found in Notice 236 Customs: Importing returned goods free
of duty and tax.

What is Temporary Admission (TA)?
Temporary Admission generally allows you to import goods for temporary use with relief
from customs duties and import VAT. Goods must not be processed or repaired other than


Section v

routine maintenance necessary to preserve them in the condition in which they were
imported.

There are several different TA reliefs. Some examples of these are:

 goods coming in for an exhibition,
 goods coming in for your company to test (but not to destruction),
 sample goods to show to prospective buyers,
 animals coming in for training / breeding / veterinary treatment or competitions.

Some of the reliefs will require that the goods remain in non EU ownership and / or restrict
how they may be used. Goods must also be re-exported within the prescribed time-limits.

How does TA work?
TA must be claimed in the EU country where the first TA use takes place, for example if you
import non EU goods to the UK enroute for an exhibition in Ireland the application for TA
must be made in Ireland. Goods entered to TA for use in one EU country can also, provided
they are moved under Customs control be sent to another EU country for further use, e.g.
exhibition to exhibition.

For most importations security (either by cash deposit, or bank guarantee) equal to the full
amount of duty and import VAT potentially due will be required. This may be reclaimed when
the goods have been re-exported or entered to another customs relief and the correct official
documentary evidence can be provided.

Do I need to be authorised to use TA?
Yes. You can apply for authorisation at the time you import your goods:

 using a simplified authorisation by quoting the appropriate TA relief CPC in the ‘53’
series (further information on this can be found in the Tariff volume 3 part 3), on your
C88 entry; or
 for limited types of goods and uses only:
o by ‘oral declaration’ supported by an inventory document (form C108 is the
UK inventory document, if you will subsequently use the goods for the same
purpose in other EU countries you should use an EU model inventory
document instead of form C108);
o by ‘declaration by any other act’ where declaration and application for
authorisation is accepted to have been made by going through the ‘nothing to
declare’ channel or its equivalent (for example non EU travellers personal
effects).

You can also make a prior application for TA authorisation to HMRC using form C&E 1331.
This can be used where regular imports are to be made and can cover different types of
goods and uses. You will be issued with an authorisation number to quote on all your TA
entries. Goods can also imported for use from outside the EU or from a Special Territory of
the EU such as the Channel Islands, on which VAT only is due e.g. yachts or civil aircraft.

More details about Temporary Admission can be found in Notice 200 Temporary Admission;
Notice 306 Temporary Admission – temporarily importing non EC containers and pallets;
Notice 308 Temporary Admission – temporarily importing non EC means of transport.

ATA Carnets


Section v

These can also be used to import non EU goods for temporary use under Temporary
Admission or to cover UK / EU goods exported for temporary use outside the EU. The ATA
carnet is a book of vouchers that replaces customs documentation normally required at the
time of import and export. The ATA carnet system is operated worldwide under the ATA
Carnet and Istanbul Conventions. Security to cover import duties potentially due in the
country to be visited is lodged in the country of issue. In the UK, ATA carnets are issued by
Chambers of Commerce and Industry. Further information and details of Chambers of
Commerce and Industry in other countries can also be obtained from :

The London Chamber Of Commerce and Industry
Export Documents – Carnets
33 Queen Street
London EC4R 1AP

Tel : +44 (0)20 7248 4444
Fax: +44 (0)20 7203 1921 / (0)20 7248 0391
Email: aallan@londonchamber.co.uk
www.londonchamber.co.uk

Further details about ATA carnets can be found in Notice 104 ATA and CPD Carnets.

What is Customs Warehousing?
Customs warehousing is a storage procedure whereby the payment of customs duties and /
or import VAT can be suspended or delayed when non-Community goods are stored in a
defined location (premises or place) or under an inventory system authorised as a customs
warehouse.

The normal rules relating to import and export prohibitions and restrictions apply to goods
imported into and exported from customs warehouses. Therefore, licences are needed in the
normal way.

How does Customs Warehousing work?
There are different types of warehouses, depending on the responsibilities you wish to
assume. Private warehouses (known as types C, D and E) are for the storage of goods
deposited by an individual trader, authorised as the warehouse keeper who need not own
the goods but who must take on the responsibilities of the depositor. A public warehouse
(Type A) is authorised for use by a warehouse keeper whose main business is the storage
of other trader’s goods. A Type A warehouse keeper does not take on the responsibilities of
the depositor.

The depositor has the responsibility of being bound by the declaration placing the goods
under the customs warehousing procedure and will be liable for any duties and taxes.

Do I need to be authorised to use Customs Warehousing?
Yes, an application on a C1410 form has to be made to HMRC. Your Authorisation Number
must be quoted on all customs warehousing entries, to your premises.

Further details about customs warehousing can be found in Notice 232 Customs
Warehousing.

What is End-Use Relief?
End-use provides relief to promote certain EU industries and trades. To qualify for relief the
following must apply:


Section v

 the goods and / or processes must be eligible for end-use;
 you must be authorised for the relief, and
 the goods must be put to their prescribed end-use within agreed time limits. The
length of time an end-use authorisation can be issued for depends on the type of
goods and the processing involved. The period of authorisation does not normally
exceed 3 years from the date the authorisation takes effect. Renewal can be
considered for exceptional circumstances.

How does End-Use Relief work?
End-use relief applies only to duty. VAT if due, must be paid unless any separate VAT relief
applies. End-use does not include relief from Excise duty or Anti dumping duty (ADD).

Do I need to be authorised to use End-Use Relief?
You need to be authorised to import or receive end-use goods. Authorisations are issued to
the person importing or having the goods imported.

If you are a processor of end-use goods you must be authorised to receive such goods from
importers, either in your own right or as a named processor in the importer’s authorisation.

There are four different types of end-use authorisation:

 Simplified authorisation used to import goods on a one-off basis for simple
operations within the UK. A trader using the simplified end-use facility cannot make
use of it more than three times in a calendar year. Simplified declaration procedures,
e.g. Customs Freight Simplified Procedure (CFSP) cannot be used in association
with simplified end-use.
 Authorisation within the UK using form C1317. This type of authorisation can cover
processing on your behalf by other companies where operations are solely within the
UK.
 Single Community authorisation, where processing or transport of goods involves
more than one Member State. Application is made on the model form (Annex 67) in
Commission Regulation 2454/93.
 Integrated Authorisation. This is for traders to import and process goods which
require authorisation for end-use and another customs procedure, for example
Inward Processing Relief. Application is made using form C1317.

Further details about End Use Relief can be found in Notice 770 Imported goods: end-use
relief.

What is Processing under Customs Control (PCC)?
PCC allows certain raw materials or components to be imported under duty suspension
arrangements for processing and subsequent release to free circulation in the EU. If you
intend to export the processed products you should apply for inward processing relief.

How does PCC work?
After processing the finished products may be declared to free circulation at the lower duty
rate that applies rather than the rate that applies to the raw materials.

Do I need to be authorised to use PCC?
There is a simplified authorisation available at the time of import for goods being processed
in the UK only and which fall in Part A of Annex 76 of EC Regulation 2454/93. 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


Section v

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

Further details about PCC can be found in Notice 237 Processing under Customs Control
(PCC).

What is Free Zone?
A Free Zone is a designated area in which non-Community goods are treated as being
outside the customs territory of the Community for the purpose of import duties.

Please note:
Free Zone provision within the UK will cease to exist at the end of 2012, before the
new modernised Customs Code comes into effect. Anyone considering the use of
Free Zones will be encouraged to look at the options available under Customs
Warehousing instead.

How does Free Zone work?
Free Zone goods mean that import duties (including agricultural charges) are not due
provided the goods are not released for free circulation. Import VAT is also suspended until
the goods are removed to the UK market or used or consumed within the Free Zone.

UK Free Zones are controlled principally on the basis of the requirements of customs
warehousing procedures, on an audit basis rather than physical checks on arrival.

The normal rules relating to import and export prohibitions and restrictions apply to goods
imported into and exported from free zones. Therefore, licences are needed in the normal
way.

There are no special reliefs in Free Zones from other taxes, excise duties or local authority
(council tax) rates.

There are currently four free zones in the UK located at Liverpool, Prestwick, Sheerness and
Tilbury. An additional Free Zone is in operation in the Isle of Man.

Do I need to be authorised to use Free Zone?
To be a Free Zone Operator within a UK Free Zones you will need prior authorisation from
Customs, and a supporting letter from the Free Zone Manager. You should apply in writing
to the office responsible for the free zone.

Further details about Free Zones can be found in Notice 334 Free Zones.

What are Rejected Imports?
As the customer of an overseas supplier, you will be unaware in many cases if goods are
correct until you open the packages. By that time the import has taken place and duty / VAT
will have been paid. If the goods are not acceptable, for example they are broken or the
wrong specification has been sent, it is likely that you will want to send the goods back to
your supplier, i.e. you reject the import.

Your supplier may send a credit note for the value of your order, but you will still need to
recover the duty and possibly VAT. If you are VAT-registered, you will receive a VAT


Section v

Certificate to use with your VAT Return as usual. Under these circumstances, the Rejected
Imports procedure can be of use to reclaim the duty.

Do I need to be authorised to use the Rejected Imports procedure?
No, you do not need to be authorised to use the procedure. However if you have received
goods you cannot use, for instance, because they were defective or damaged, you can
make a claim for repayment of duty, plus VAT if you are not VAT registered. This is provided
that you inform your local HMRC Business Centre before you dispose of the goods – for
example by re-export, or destruction. You need to be able to prove why you are rejecting the
import, and have a copy of the import entry showing the duty and VAT paid against the
consignment.

You can reject part of a consignment, and the duty and VAT would be apportioned
accordingly.

More details about Rejected Imports and the procedure for making claims can be found in
Notice 266 Rejected imports: repayment or remission of duty and VAT.

What is the Community System of Duty Reliefs (CSDR)?
CSDR is the collective term for a number of different conditional reliefs designed to promote
educational, scientific, social and cultural advancement by allowing certain goods to be
imported free of customs charges. Examples of goods which may qualify for relief include :

 those items imported by charities for the benefit of needy people;
 specifically tailored goods for use by the disabled;
 museum and gallery exhibits;
 scientific research equipment;
 commercial samples; and
 goods for examination, analysis and test.

Each relief has its own set of Customs Procedure Codes (CPCs) and relevant conditions to
be met.

How does CSDR work?
Importers must maintain clear records and audit trails in respect of goods imported to
facilitate assurance visits and demonstrate the eligibility criteria are met and the goods have
been put to the prescribed use. For some of the reliefs, there are post import disposal
restrictions.

Do I need to be authorised to use CSDR?
In some cases prior authorisation is necessary. Imports to museums and art galleries are
covered by general authorisations for the premises themselves. Other imports such as
goods for the disabled and goods for scientific research are covered by specific
authorisations. Imports of Goods for Test do not require prior authorisation but you will need
to make a declaration on when the testing procedure will be completed. Most authorisations
are granted by the National Imports Relief Unit (NIRU), Enniskillen. Their contact details are
:

National Imports Relief Unit (NIRU)
Abbey House
Head Street
Enniskillen


Section v

Co Fermanagh
Northern Ireland
BT74 7JL

Telephone : +44 (0)2866 344 557
Fax : +44 (0)2866 344 571
E-mail : NIRU@HMRC.gsi.gov.uk

In certain circumstances, private establishments must be authorised by other Government
Departments such as the Home Office and Department of Health.

Further details about CSDR reliefs can be found in Volume 1, Part 10 of the Tariff, and in the
various relevant Notices in the 300 series.

What is Onward Supply Relief (OSR)?
OSR is a relief from import VAT for goods imported into the UK from outside the EU by a UK
VAT registered trader in the course of an onward supply of those actual goods to another
Member State.

How does OSR work?
OSR provides a third choice where goods are imported into the UK (or are being removed
from a customs procedure allowing suspension of customs duty and import VAT – Inward
Processing - suspension, Temporary Admission, Processing under Customs Control, Free
Zone and Customs Warehousing) that are destined for a customer in another Member State.
Once entered to OSR in the UK the goods cannot be processed pending onward shipment.

Customs duty is paid in the UK but the import VAT is relieved provided the goods are
shipped on to a VAT registered trader in another Member State within 30 days.

The requirement for the UK importer to make a VAT supply of goods means that this relief
can only be used by import / customs clearance agents where they have been authorised
under the terms of section 47 of the VAT Act by either the buyer or seller of the goods to act
as a VAT agent for that company. In particular, the import / customs clearance agent will be
responsible for issuing tax invoices and complying with VAT accounting rules – including
raising EC sales lists (and where necessary supplementary declarations) and recording
details on the VAT return – in relation to those goods.

Do I need to be authorised to use OSR?
There is no need for prior approval but there are a number of conditions which you must
fulfill.


Section v

Condition You must :
1.  be a UK VAT registered importer, or
 be a UK VAT registered agent appointed to act as importer and principal
on behalf of a trader who is not based in the UK and not VAT registered in
the UK, by acting as importer / principal the agent also assumes liability
regarding a VAT debt
2. be making a zero-rated supply of goods to a taxable person in another EU
country
3. dispatch the same goods as imported. Note – you cannot process them
first
4. remove the goods to another EU country within one month of the date of
importation (which is the date when the goods enter free circulation). If you
cannot meet this deadline you can apply to NIRU for an extension (see below
for contact details)
and
5. complete EC sales lists and record EU trade figures on VAT returns. If you are
an import agent you need to read paragraph 2.2 of VAT Notice 702/7 Import
VAT relief for goods supplied onward to another country in the EC.

Completion of the Import Declaration (SAD)
To claim the relief, you must enter the appropriate Customs Procedure Code (CPC) in Box
37 of your import declaration.

By using the CPC, you are making a declaration that you :
 have met the conditions of the relief at paragraph 2.5 of VAT Notice 702/7 Import
VAT relief for goods supplied onward to another country in the EC,
 will produce, if asked by one of our officers, commercial evidence that shows the
goods have been supplied onward to another EU country, and
 will pay on demand any import charges due if the conditions of the relief are not met.

 AND

In Box 44 of the import SAD you must enter :
 the expected place and date of onward consignment,
 the name, address, and VAT registration number of the consignee in the EU country
of destination,
 if known, the identify of the onward transport, ship, aircraft, vehicle etc.

Further details about OSR can be found in VAT Notice 702/7 Import VAT relief for goods
supplied onward to another country in the EC.

What other relief schemes are there?
Our catalogue of Publications (Notice 999) has a full listing of the Notices covering other
Duty Relief Schemes such as Inherited Goods, Goods for Test to Destruction, Commercial
Samples etc.


HMRC starter pack guide to import and export

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HMRC starter pack guide to import and export