Using outward processing to process or repair your goods

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 chargescharges, andplus 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 needhave to pay duty on goods that have been repaired or replaced free of charge,charge under a guarantee. You must show us this guarantee.

You needdo have to pay duty if a repair is made under a service contract or warranty that youyou’ve have 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 informationINF sheetform.

You need a separate informationform sheet for each commodity codecode.

The andform youneeds need to include: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

YouYou’ll need to include your outward processing authorisation number on your import declaration.

WeWe’ll will also need to see documents that prove that:prove:

• the goods you’re re-importing were exported using outward processing
• youyou’ve have correctly worked out the amount of duty relief you want to claim

In some cases, you maymight not be able to prove that the 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 needhave 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-importingre importing gold and jewellery, you needwill require an authorisation for outward processing. You should send the gold or jewellery to an assay office prior to export,export in order to identify the carat and quantity of gold being exported.

At re-import,re-import when the gold has been made into jewellery,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,used as all duties must have been paid on the goods prior to export.export Forfor example,example they must be union goods.

MakeYou 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 freeFree tradeTrade agreementAgreement (FTA)

Subject to the conditions outlined in the agreement, youFTA you can export UK free circulation goods for repair or alteration towithout theCustoms otherDuty freebeing tradeapplicable agreementirrespective territory,of withoutorigin applyingon Customstheir Dutyreimport wheninto importingGreat themBritain. backThis intois provided the UK.

Normalgoods importare VATalready rulesin apply,free subjectcirculation towithin the outwardcontracting processingparties procedure.territory.

YouPlease must check the conditions of the respective free trade agreement:FTAs:

• UK trade agreements with non-EU countries
• UK/EU and EAEC: Trade and Cooperation Agreement (TS[TS No.8/2021)No.8/2021]

ForTo freeenable circulation goods to be exportedre-imported free from theCustoms UKDuty, andoutward re-importedprocessing afteris applicable.

If you export goods for repair or alteration in anotherthe freecontext tradeof agreementUK territory,international thetrade followingarrangements, outwardyou processingmust use the customs procedure codes are available: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.