How to Use Special Customs Procedures in the UK

Special customs procedures are tools that let businesses reduce or defer duty and VAT on imports into the UK. In practice they apply when goods are stored, processed, brought in temporarily, or return to the UK after export. For a general overview see also the scope of special customs procedures.

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Types of special customs procedures in the UK

Customs warehousing

Lets you store goods imported from outside the UK in a customs warehouse and delay paying duty and import VAT. No duty or VAT is due at all if the goods are re-exported or moved to another customs procedure (other than authorised use); the charges arise when the goods are released into free circulation in the UK (GOV.UK). It is useful when you need flexibility in managing stock. Operating a warehouse requires HMRC authorisation and detailed records — see customs warehouse requirements.

Inward processing

You do not pay Customs Duty or import VAT on goods imported from outside the UK for processing or repair if they are then re-exported. If the processed goods stay in the UK, Customs Duty and import VAT may become payable (GOV.UK). The procedure requires HMRC authorisation and accurate records; we cover it in IPR and OPR relief.

Outward processing

Allows goods to be temporarily exported for processing or repair outside the UK and to pay reduced Customs Duty and import VAT when they return; the procedure requires HMRC authorisation (GOV.UK). It suits businesses working with foreign contractors.

Temporary admission

Allows goods to be brought into the UK with full or partial relief from import duty, provided they are later re-exported. Goods from outside the UK may need prior authorisation from HMRC, and processing and repairs are not permitted under this procedure (GOV.UK). It is used, for example, for goods brought in for trade fairs and exhibitions; for temporary imports an ATA carnet can help.

Returned goods relief

Lets you re-import goods previously exported from the UK without paying import duty and VAT — provided they come back in an unaltered state (work to keep them in working order is allowed) and, as a rule, within 3 years of export. Relief from import VAT requires the exporter and importer to be the same person (GOV.UK). It is useful, for example, for goods sent outside the UK for demonstrations or trade fairs.

What documents are needed

• commercial invoices and packing lists that accurately describe the goods and their value,
• a UK EORI number,
• the commodity code of the goods,
• HMRC authorisation — required, among others, to operate a customs warehouse and for inward processing; for other procedures it depends on the case (check the GOV.UK guidance for the procedure).

Authorisations and records

To use procedures that need authorisation, a business applies to HMRC and keeps records that allow the movement of goods to be tracked. Getting authorisation can be time-consuming, so prepare the application in advance and, if in doubt, get help from a customs agent — see how to choose a customs agency.

Wondering which procedure suits your imports? Get in touch.

Frequently asked questions