Work out your duty payments
You’re responsible for working out the duty you want to claim, and you’ll need to show us the calculations you used.
You need to get these calculations right as they’ll decide on the level of duty you’ll pay.
The amount is based on the costs of processing or repairing the exported goods and bringing them back into the UK.
You’ll need to know the ‘rate of yield’. This is a ratio that shows how many products result from outward processing.
Example How to work out the rate of yield
You export 1 roll of cloth to a dress-maker in the USA and they make 5 dresses — giving a rate of yield of 1:5.
If you re-import a number of different products made up of several different materials you can supply a bill of materials for each product.
If you are using authorisation by declaration for repair and return, the rate of yield will always be one to one (1:1).
Duty on goods you export for repair
You’ll pay duty at re-import on charges made for repair or replacement, plus any inward shipping and insurance costs you pay for the return of the goods.
VAT is charged on the repair costs, plus outward and inward freight charges, plus duty, but excluding insurance charges.
These charges depend on you not paying less for the repair or replacement because you’re related to the seller.
You do not have to pay duty on goods that have been repaired or replaced free of charge under a guarantee. You must show us this guarantee.
You do have to pay duty if a repair is made under a service contract or warranty that you’ve paid for. This is because the cost is considered part of the overall value of your goods.
For replacements, you will be charged VAT on the full VAT replacement value.
Export your goods
Include your outward processing relief authorisation number on your export declaration.
If you’re going to re-import your goods in separate consignments, you will need to complete an INF form.
You need a separate form for each commodity code.
The form needs to include things like:
- details of your goods such as description and quantity
- identifying numbers or any other ways for us to match your re-import with your export
the expected rate of yield
Re-import your goods
You’ll need to include your outward processing authorisation number on your import declaration.
We’ll also need to see documents that prove:
- the goods you’re re-importing were exported using outward processing
- you’ve correctly worked out the amount of duty relief you want to claim
In some cases, you might not be able to prove that goods you exported were used in the process outside the UK.
For example, when sugar is exported to a processing company and it’s stored with other sugar before being made into jam.
If this happens, you may still be able to get duty relief by using equivalence.
Re-import in separate consignments
When you re-import your goods in separate consignments, you need to present a copy of the export declaration or departure message.
Simplified declarations
If you claim outward processing relief as part of a simplified declaration, you have to keep detailed records.
Goods not eligible for outward processing
Goods must not be declared for an outward processing procedure if exporting them causes:
- a remission or repayment of import duty
- an export refund
Exporting gold using outward processing
If you wish to use outward processing for exporting and re importing gold and jewellery, you will require an authorisation for outward processing. You should send the gold or jewellery to an assay office prior to export in order to identify the carat and quantity of gold being exported.
At re-import when the gold has been made into jewellery you should make sure you have documentation from the jewellery manufacturer showing that your gold has been made into the jewellery being imported.
Duty will only be paid on the processing costs and any additional materials used as all duties must have been paid on the goods prior to export for example they must be union goods.
You should make sure that:
- the description of the manufactured jewellery is sufficiently detailed to identify the items presented for re-import
- you hold documentary evidence that the same carat and weight of gold has been processed into the finished jewellery
- the cost of any stones that have been added to the value or processing costs as non-EU goods
Exporting goods for repair or alteration under a Free Trade Agreement (FTA)
Subject to the conditions outlined in the FTA you can export goods for repair or alteration without Customs Duty being applicable irrespective of origin on their reimport into Great Britain. This is provided the goods are already in free circulation within the contracting parties territory.
Please check the conditions of the respective FTAs:
To enable goods to be re-imported free from Customs Duty, outward processing is applicable.
If you export goods for repair or alteration in the context of UK international trade arrangements, you must use the customs procedure code:
- 21 00 004 to export under authorisation by declaration
- 61 21 001 to re-import goods previously exported under customs procedure code 21 00 004
- 21 00 000 to export under a full outward processing authorisation
- 61 21 000 to re-import under a full outward processing authorisation
After you’ve re-imported your goods
When you’ve re-imported your processed or repaired goods and paid all charges due, outward processing will normally end or be ‘discharged’.
Make sure your records show the re-imported goods are the same as the ones you exported, or that they are within or part of the re-imported goods.
