Guide: How to Use Special Customs Procedures in the UK

Guide: How to Use Special Customs Procedures in the UK

Introduction to Special Customs Procedures in the UK

Special customs procedures in the UK are a set of tools that allow companies to reduce duty and VAT costs when importing goods. Thanks to procedures such as customs warehousing, inward processing, temporary admission or returned goods relief, businesses in the United Kingdom can make significant savings and boost their competitiveness in the market. In the context of post-Brexit customs rules, these procedures are essential for managing EU–UK trade effectively.

Types of Special Customs Procedures in the UK

Customs Warehousing

Customs warehousing allows goods imported into the UK to be stored without immediately paying duty and VAT until they are further distributed or exported. This procedure is particularly beneficial for companies importing large quantities of goods that need flexibility in managing stock. To use customs warehousing, you need to obtain authorisation and keep detailed records.

Inward Processing

Inward processing allows companies to suspend duty on imported raw materials or semi-finished products intended for further processing and export. This lets businesses reduce their production costs and pay duty only on goods intended for the UK market. This procedure requires accurate records and automation, which makes managing the process easier.

Outward Processing

Outward processing allows goods to be temporarily exported for processing or repair outside the UK, with duty payable only on the value added once the goods return. This procedure is beneficial for companies working with foreign manufacturers or contractors.

Temporary Admission

The temporary admission procedure allows goods to be brought into the UK without paying duty, provided they are later re-exported. This is an ideal solution for companies bringing in goods for trade fairs, exhibitions, or short-term projects.

Returned Goods Relief

With returned goods relief, you can recover duty on goods that were exported from the UK and later return unchanged. This is particularly useful for companies that temporarily send goods outside the UK for demonstrations, trade fairs, or repair.

What Documents Are Required to Use Special Customs Procedures?

To use special customs procedures in the UK, companies need to prepare the appropriate documents, such as:

• Commercial invoices and packing lists that accurately describe the goods and their value,
• An EORI number to identify the company in the UK customs system,
• An HS tariff code (Harmonized System Code) for classifying the goods,
• Customs authorisation, which is required for customs warehousing or inward processing.

The Process of Obtaining Authorisations for Special Customs Procedures in the UK

To legally use the special customs procedures described above, companies must obtain the appropriate authorisation from UK Customs. This process requires gathering accurate documentation and keeping records that allow the movement of goods to be tracked and regulatory requirements to be met. Obtaining authorisation can be complex and time-consuming, so it's worth considering support from a professional customs broker.

The Benefits of Automating Customs Processes

Automating customs procedures using modern IT systems (e.g. SaaS solutions) increases efficiency and reduces the number of administrative errors. These systems support stock management, document generation, and the creation of reports required by UK customs authorities. Automating customs procedures is particularly beneficial for large companies that regularly import or export large quantities of goods.

It's Worth Using a Customs Broker's Services

Working with an experienced customs broker can make it significantly easier to use special customs procedures in the UK. Customs experts can help obtain the required authorisations, manage documentation, and optimise customs costs, allowing companies to avoid mistakes and focus on growing their business.