Inward Processing Relief; How to Obtain Duty Relief on Goods Imported From Outside the EC for...

8/8/2019 Inward Processing Relief; How to Obtain Duty Relief on Goods Imported From Outside the EC for Re-export

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Notice 221

Inward processing reliefJanuary 2003 - This notice has updates at the end of this document

This notice cancels and replaces Notice 221 (August 2002). Details of any changes to the previousversion can be found in paragraph 1.1 of this notice.

Further help and advice

If you need general advice or more copies of Customs and Excise notices, please ring the National Advice Service on0845 010 9000. You can call between 8.00 am and 8.00 pm, Monday to Friday.

If you have hearing difficulties, please ring the Textphone service on 0845 000 0200.

If you would like to speak to someone in Welsh, please ring 0845 010 0300, between 8.00 am and 6.00 pm, Monday toFriday.

All calls are charged at the local rate within the UK. Charges may differ for mobile phones.

Other notices on this or related subjects:

Notice 60 Notice 237 Notice 750Notice 143 Notice 275 Notice 770Notice 199 Notice 276 Notice 827Notice 2 Notice 334 Notice 828Notice 232 Notice 375 Notice 990Notice 235 Notice 702 Notice 1000Notice 236 Notice 704

HM CUSTOMS AND EXCISEhttp://www.hmce.gov.uk


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Contents

1. Introduction............................................................................................................................................. 81.1 What is this notice about? ........................................................................................................................ 81.2 Whats changed?...................................................................................................................................... 81.3 The purpose of IPR .................................................................................................................................. 81.4

Who can use IPR...................................................................................................................................... 8

1.5 How IPR works ......................................................................................................................................... 81.6 Suspension............................................................................................................................................... 81.7 Drawback.................................................................................................................................................. 91.8 How best to use this notice....................................................................................................................... 91.9 What law covers this notice? .................................................................................................................... 91.10 Where can I obtain further information about IPR?.................................................................................. 92. General information about authorisation........................................................................................... 112.1 Why do I need an authorisation?............................................................................................................ 112.2 What types of authorisation are there? .................................................................................................. 112.3 How do I know which one to use?.......................................................................................................... 112.4 What is an economic code? ................................................................................................................... 112.5 How long does authorisation take? ........................................................................................................ 112.6 How long does an authorisation last? .................................................................................................... 112.7 Responsibilities of the authorisation holder............................................................................................ 122.8 Do I need to provide security?................................................................................................................ 122.9 Refusal of an application for authorisation ............................................................................................. 122.10 Can I alter or amendment my authorisation? ......................................................................................... 122.11 How do I renew my authorisation? ......................................................................................................... 132.12 How do I cancel my authorisation? ........................................................................................................ 132.13 Customs checks ..................................................................................................................................... 133. Application conditions and requirements ...................................................................................... 143.1 Period required to enter process and dispose of IPR goods.................................................................. 143.2 Inventory system .................................................................................................................................... 143.3 Restricted through-put periods ............................................................................................................... 143.4 Compensating products.......................................................................................................................... 143.5 Reduced rates of duty on secondary compensating products (own rates) ............................................ 153.6 Rate of yield............................................................................................................................................ 153.7 Rate of yield (processing/trimming of beef fillets)................................................................................... 153.8 Standard rates of yield for agricultural goods......................................................................................... 153.9 How to check if a standard rate of yield applies..................................................................................... 163.10 The economic test .................................................................................................................................. 163.11 Who carries out the test?........................................................................................................................ 163.12 Records .................................................................................................................................................. 163.13 Using normal commercial records.......................................................................................................... 173.14 How long records must be kept for......................................................................................................... 174. Simplified authorisation....................................................................................................................... 184.1 When can I use a simplified authorisation?............................................................................................ 184.2 Are there any other restrictions on the use of simplified authorisation procedures? ............................. 184.3 How do I apply? ...................................................................................................................................... 185. Local authorisation (UK only) ............................................................................................................. 205.1 When might I need a local authorisation? .............................................................................................. 205.2 How do I apply for a local authorisation? ............................................................................................... 206. Specific authorisation (UK only) ......................................................................................................... 216.1 When might I need a specific authorisation?.......................................................................................... 216.2 How do I apply for a specific authorisation?........................................................................................... 217.

Single Community authorisation ........................................................................................................ 22

7.1 When might I need a single community authorisation?.......................................................................... 227.2 How do I apply for a single community authorisation?........................................................................... 228. Integrated authorisation ...................................................................................................................... 238.1 When might I use an integrated authorisation?...................................................................................... 23


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8.2 How do I apply for an integrated authorisation? .....................................................................................239. Retrospective IPR authorisation..........................................................................................................249.1 Can I apply for a retrospective IPR authorisation? .................................................................................2410. Importation and entry procedures.......................................................................................................2510.1 How do I enter goods to IPR?.................................................................................................................2510.2

Authorising a third party to act on your behalf ........................................................................................25

10.3 Can I amend an entry?............................................................................................................................2610.4 How do I amend an entry? ......................................................................................................................2610.5 Goods subject to preference import licensing or other import restrictions..............................................2610.6 What about goods that need a DTI import licence?................................................................................2610.7 Firearms, ammunition or nuclear materials.............................................................................................2610.8 Non-quantitative import restrictions (surveillance licenses)....................................................................2610.9 Ozone depleting substances...................................................................................................................2610.10Restrictions on animals and animal products..........................................................................................2610.11How do I import IPR goods by post?.......................................................................................................2610.12Information document Form C1055 ........................................................................................................2711. Charges for secondary compensating products and using standard rates of yield .....................2811.1 How to calculate charges on secondary compensating products...........................................................2811.2 How to calculate charges on secondary compensating products if an own rate applies........................28 11.3 How do I use the standard rates of yield?...............................................................................................2812. IPR transfers..........................................................................................................................................2912.1 How can IPR goods be transferred?.......................................................................................................2912.2 Do I need to provide a guarantee when I transfer goods?......................................................................2912.3 Do I need to be authorised to transfer goods?........................................................................................2912.4 How do I carry out transfers within the same authorisation? ..................................................................2912.5 Local clearance procedure (LCP) ...........................................................................................................2912.6 Transfer using the declaration procedure (UK only) ...............................................................................2912.7 Transferring goods subject to quantitative restrictions, tariff quotas or other import restrictions............30 12.8 Goods diverted to the Community market...............................................................................................3012.9 Transfer using Form C&E 811 ................................................................................................................3012.10Simplified procedures for transfers within the UK...................................................................................3012.11Simplified C&E 811 procedures ..............................................................................................................3112.12Commercial documents...........................................................................................................................3112.13Commercial confidentiality ......................................................................................................................3112.14Transfer of IPR suspension goods between Member States..................................................................3112.15Simplified transfer procedures for IPR suspension goods between Member States..............................31 12.16What is Form INF 1? ...............................................................................................................................3212.17Transferring IPR goods between Member States under a Single Community authorisation .................3212.18Transferring IPR drawback goods to or from another Member State .....................................................3212.19Transferring goods within an integrated authorisation............................................................................3313. Equivalence ...........................................................................................................................................3413.1 What is equivalence? ..............................................................................................................................3413.2 What conditions apply to equivalence?...................................................................................................3413.3 How do I know when goods are equivalent?...........................................................................................3413.4 Using goods at a more advanced stage of processing than the imported goods...................................3513.5 Authorisation to use equivalence ............................................................................................................3513.6 How equivalence can be used ................................................................................................................3513.7 What is Prior export equivalence (EX/IM)?.............................................................................................3513.8 How do I export equivalent goods?.........................................................................................................3613.9 Time limits for importing the replacement goods (EX/IM).......................................................................3613.10What is Triangulation? (EX/IM - Form INF 5)..........................................................................................3613.11How do I export goods under triangulation (EX/IM)................................................................................3613.12How do I import goods to IPR under triangulation (EX/IM)?...................................................................3613.13What is Prior import equivalence (IM/EX)? .............................................................................................3713.14How do I import goods using Prior import equivalence?.........................................................................3713.15How do I export goods using Prior import equivalence?.........................................................................3713.16Triangulation Import/Export (IM/EX ) - Form INF 9.................................................................................3713.17What is the Customs status of the goods imported and exported under equivalence?..........................37


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14. Special equivalence rules.................................................................................................................... 3914.1 Rice......................................................................................................................................................... 3914.2 Wheat ..................................................................................................................................................... 3914.3 Sugar ...................................................................................................................................................... 3914.4 Live animals and meat products............................................................................................................. 3914.5 Milk and milk products............................................................................................................................ 3914.6 Other goods ............................................................................................................................................ 3914.7 Genetically modified foods ..................................................................................................................... 3915. Export and other eligible disposals.................................................................................................... 4015.1 Discharging IPR...................................................................................................................................... 4015.2 Eligible disposals .................................................................................................................................... 4015.3 Pre-entry of goods for export.................................................................................................................. 4015.4 Exporting goods outside the Community................................................................................................ 4015.5 Postal export procedures........................................................................................................................ 4115.6 Special rules for export to certain countries ........................................................................................... 4115.7 Exporting goods from the Community via another Member State ......................................................... 4115.8 Exporting goods from the Community using the Community Transit procedure.................................... 4115.9 Transferring goods to another customs procedure within the UK.......................................................... 4215.10Transferring goods to another IPR authorisation holder ........................................................................ 4315.11Transferring goods to another Member State for subsequent entry to another customs procedure ..... 4315.12Transfers to Export Shops in the UK (except where the goods are intended for passengers

travelling to other Community countries) ................................................................................................ 4315.13Transferring goods to DODIM relief........................................................................................................ 4315.14Transferring goods to armed forces ....................................................................................................... 4415.15Transfers to NAAFI................................................................................................................................. 4415.16Sales to Embassies, Consulates - (people entitled to diplomatic privilege including diplomats from

countries outside the EC based in the EC and supplies to EC embassies outside the EC).................. 4415.17Use as stores or bunkers on ships travelling outside the UK eg food for passengers........................... 4415.18Use as commissary stores ..................................................................................................................... 4415.19Use in tray type meals - (meals delivered direct for export from the UK on intra-EC flights or cross

channel ferries but not cross channel trains).......................................................................................... 4415.20Aviation fuel used on third country and intra Community flights (but not UK flights) ............................. 4415.21Transfer to an Aircraft spare parts depot (ASPD) (suspension goods only) .......................................... 4415.22Temporary export outside the EC (IPR and OPR) ................................................................................. 4415.23Diverting IPR suspension goods to the Community market ................................................................... 4515.24Diverting goods entered under a simplified authorisation (Form C101)................................................. 4515.25Diverting goods subject to import licence restrictions ............................................................................ 4515.26Diverting goods subject to tariff quotas or ceilings ................................................................................. 4515.27Duty due on IPR goods diverted to the Community market ................................................................... 4515.28Methods of calculating duty.................................................................................................................... 4715.29Diverting IPR goods to End Use relief.................................................................................................... 4715.30Destruction.............................................................................................................................................. 4815.31Customs Debt......................................................................................................................................... 4815.32Intrastat................................................................................................................................................... 4816. Suspension returns and Drawback repayment claims..................................................................... 4916.1 Suspension returns................................................................................................................................. 4916.2 Simplified suspension returns................................................................................................................. 4916.3 Claiming repayment of duty on IPR drawback goods ............................................................................ 4917. Compensatory interest ........................................................................................................................ 5017.1 Why compensatory interest is charged? ................................................................................................ 5017.2 How compensatory interest is calculated? ............................................................................................. 5017.3 Other ways of calculating the interest .................................................................................................... 5017.4 Compensatory interest rate .................................................................................................................... 5017.5 Payment of compensatory interest......................................................................................................... 5017.6 Circumstances when compensatory interest will not be due ................................................................. 5018. Aircraft construction and repair ......................................................................................................... 5218.1 General ................................................................................................................................................... 5218.2 Goods and processes excluded from the simplified procedures............................................................ 5218.3 Definition of civil aircraft and aircraft parts ............................................................................................. 5218.4 Simplified procedures ............................................................................................................................. 52


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18.5 Dual purpose goods ................................................................................................................................5318.6 IPR and End Use.....................................................................................................................................5318.7 How to apply to use the simplified procedures........................................................................................5318.8 Period required to enter, process and dispose of the IPR goods ...........................................................5318.9 Returning goods to stock.........................................................................................................................5418.10Transferring goods ..................................................................................................................................5418.11Preference...............................................................................................................................................5418.12Suspension returns and drawback claims...............................................................................................5419. Inward processing in a Customs warehouse or Free Zone..............................................................5519.1 General....................................................................................................................................................5519.2 How to apply for approval........................................................................................................................5519.3 Simplified transfer procedures ................................................................................................................5519.4 Diverting goods from warehousing or a free zone to the Community market.........................................55 19.5 VAT..........................................................................................................................................................5520. Continental Shelf...................................................................................................................................5620.1 General....................................................................................................................................................5620.2 Transfers .................................................................................................................................................5620.3 Authorisation to use simplified procedures to declare goods despatched to or returned from the

continental shelf outside EC territorial waters.........................................................................................56

20.4 Inward manifest.......................................................................................................................................5620.5 Outward manifest despatches.................................................................................................................5721. Tax free shopping .................................................................................................................................5821.1 General....................................................................................................................................................5821.2 Eligible Retailers......................................................................................................................................5821.3 Application for authorisation....................................................................................................................5821.4 Sales to entitled customers .....................................................................................................................5821.5 Period to enter process and dispose of IPR goods.................................................................................5821.6 Drawback claims/suspension returns......................................................................................................5822. IPR Scotch Whisky scheme .................................................................................................................5922.1 General....................................................................................................................................................5922.2 Application for authorisation....................................................................................................................5923. Production accessories........................................................................................................................6023.1 Production accessories, catalysts and agents ........................................................................................6023.2 Authorisation ...........................................................................................................................................6023.3 Repeated use..........................................................................................................................................6023.4 Discharging duty liability ..........................................................................................................................6023.5 Diverted IPR goods .................................................................................................................................6024. Miscellaneous questions......................................................................................................................6224.1 Stolen goods ...........................................................................................................................................6224.2 Processed cheese...................................................................................................................................6224.3 Supply balance goods.............................................................................................................................6224.4 Cultural goods .........................................................................................................................................6225. List of territories inside/outside the EC for customs duty and VAT purposes...............................6325.1 Territories are inside the EC for customs duty and VAT purposes.........................................................63 25.2 Territories inside the EC for Customs duty purposes (not VAT).............................................................6325.3 Territories outside the EC for customs duty and VAT purposes.............................................................6426. Goods that require an economic test..................................................................................................6526.1 Agricultural products covered by Annex I to the Treaty ..........................................................................6526.2 Goods not covered by Annex I to the Treaty resulting from the processing of agricultural products .....6526.3 Fishery products ......................................................................................................................................6627.

Conditions and restrictions of IPR drawback ....................................................................................67

27.1 General....................................................................................................................................................6727.2 Goods excluded from drawback..............................................................................................................6727.3 Situations where drawback will not be repaid .........................................................................................67


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28. Conditions of IPR suspension ............................................................................................................ 6829. Customs procedure codes for import to IPR..................................................................................... 6929.1 Simplified authorisations (Form C101)................................................................................................... 6929.2 Local authorisations (Form C&E 810) .................................................................................................... 6929.3 Specific authorisations............................................................................................................................ 7029.4 Entry to IPR drawback from another customs procedure ...................................................................... 7029.5 Temporary export and re-import under OPR of IPR drawback goods (see Notice 235) Outwardprocessing relief..................................................................................................................................... 7129.6 Transferring IPR drawback goods to another customs procedure......................................................... 7129.7 IPR drawback goods transferred to another customs procedure being diverted to free circulation ..... 7229.8 Exporting IPR drawback goods outside the EC ..................................................................................... 7229.9 Entry to IPR suspension (triangulation and VAT only .......................................................................... 7229.10Entry to IPR suspension from another customs procedure.................................................................... 7229.11Temporary export and re-import under OPR of IPR suspension goods (see Notice 235 Outward

processing relief) .................................................................................................................................... 7329.12IPR suspension goods being diverted to free circulation ....................................................................... 7429.13Transferring IPR suspension goods to another customs procedure...................................................... 7529.14Entering goods to the export procedure using SDP/LCP....................................................................... 7529.15Exporting suspension goods from the Community................................................................................. 7530. Guidance notes on economic codes and evidence required for authorisation under certain

economic codes ................................................................................................................................... 7730.1 Code 10 (unavailability) .......................................................................................................................... 7730.2 Code 11 (price) ....................................................................................................................................... 7730.3 Code 12 (contractual obligations)........................................................................................................... 7730.4 Code 30 .................................................................................................................................................. 7830.5 Code 99 .................................................................................................................................................. 7831. Form C101 and completion notes....................................................................................................... 7932. Usual forms of handling ...................................................................................................................... 8133. Dairy products referred to in Article 1(1) of Council Regulation 1255/99....................................... 8234. Council Regulation (EEC) No 565/80 .................................................................................................. 8335. Goods requiring a guarantee when transferred ................................................................................ 8436. Form C&E 810 Application/authorisation form for inward processing relief ................................. 8537. Evidence of export from the Community........................................................................................... 9337.1 What proof of export do I need?............................................................................................................. 9337.2 New Export Scheme (NES).................................................................................................................... 9337.3 Photocopy export evidence .................................................................................................................... 9337.4

Lost or mislaid export evidence.............................................................................................................. 93

37.5 Commercial certificate of shipment ........................................................................................................ 9337.6 Sea/Air freight ......................................................................................................................................... 9437.7 Exports by road via a "roll-on, roll-off" ferry............................................................................................ 9437.8 Groupage or consolidation transactions................................................................................................. 9437.9 Postal exports ......................................................................................................................................... 9437.10Merchandise in baggage ........................................................................................................................ 9437.11Ships stores and bunkers or aircraft stores, equipment etc .................................................................. 9438. C&E 811 procedure .............................................................................................................................. 9538.1 Movement of Form C&E811, (except suspension to drawback movements) ........................................ 9538.2 Transfers from a suspension trader to a drawback trader are treated as below:................................... 95


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39. Transfer SAD - boxes to be completed where goods are transferred between authorisationholders....................................................................................................................................................96

40. Form INF 7 (completion notes) ............................................................................................................9741. Form INF 5 Triangulation......................................................................................................................9842.

Form INF 9 Triangulation......................................................................................................................99

43. Completing the SAD where IPR suspension or goods previously entered to suspension are

diverted to the Community market....................................................................................................10044. Examples of IPR duty calculations....................................................................................................10144.1 Quantity method for compensating products ........................................................................................10144.2 Quantity method for import goods.........................................................................................................10144.3 Value method ........................................................................................................................................10244.4 Example duty calculation using standard rates of yield ........................................................................10345. Examples of interest calculations .....................................................................................................10545.1 Example 1 .............................................................................................................................................10545.2 Example 2 .............................................................................................................................................10546. Application to be authorised to use simplified procedures to declare goods despatched to or

returned from the Continental Shelf..................................................................................................10647. Continental Shelf authorised operator: supplementary declaration .............................................10748. Regulation Articles..............................................................................................................................10849. Simplified procedures.........................................................................................................................11050. The New export system (NES) ...........................................................................................................11150.1

What is NES?........................................................................................................................................111

50.2 Are there any restrictions on the use of IPR in conjunction with NES? ................................................11150.3 Do l have to amend my IPR authorisation in order to use NES?..........................................................111 50.4 What CPCs do l have to use to enter the export procedure using SDP/LCP?.....................................11150.5 Once my goods are in the export procedure, how do l move my goods to the frontier? ......................11150.6 What information must l put on the PSA? .............................................................................................11150.7 Do l still have to pre-enter my goods at export? ...................................................................................11250.8 How do l prove that l have disposed of my IPR goods correctly?.........................................................11250.9 What do l do if l want to use SDP/LCP but cannot provide all the information required on the PSA?..11250.10Can l use NES to send IPR goods to the Channel Islands?.................................................................11251. Options for the movement of goods for export under NES LCP/SDP, full declarations and IPR

arrangements.......................................................................................................................................11351.1 Movement of goods under CT...............................................................................................................11351.2 Guarantee requirements .......................................................................................................................11351.3 Export of IPR goods using inland clearance.........................................................................................11351.4 Export of IPR goods using the arrangements .......................................................................................11451.5 Export of IPR goods using Community transit ......................................................................................11452. Cultural Goods ....................................................................................................................................11653. Appeals.................................................................................................................................................11753.1 Procedure for appealing against a Customs decision...........................................................................11754. Glossary of terms and abbreviations................................................................................................118


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1. Introduction

1.1 What is this notice about?

It explains how you may be able to obtain duty relief on goods imported from outside the EC that areprocessed and re-exported from the Community using Inward Processing Relief (IPR).

It has been restructured to improve readability and has also been updated. The main changes aresummarised in JCCC paper 02/09.This Notice is not the law. It is our view of what the law says and nothing in this notice takes place of the law.

Any person who makes a false declaration or provides untrue information about goods entered to IPR may beliable to penalties under the Customs and Excise Management Act 1979.

You can access details of any changes since January 2003 on our Internet website at www.hmce.gov.uk orby telephoning the National Advice Service on 0845 010 9000.

This notice and others mentioned are available both on paper and on our website.

1.2 Whats changed?

The notice has been updated from the August 2002 version to reflect the introduction of the New Export

System. Paragraph 29.14 and sections 50 and 51 give new guidance about using IPR in conjunction with theNew Export System.

1.3 The purpose of IPR

IPR provides relief to promote exports from the EC and assist Community processors to compete on an equalfooting in the world market.

Duty is relieved on imports of non EC goods which are processed in the Community and re-exported providedthe trade does not harm the essential interests of Community producers of similar goods. It can provide relieffrom customs duty, specific customs duty (previously CAP charges), anti-dumping duty, countervailing dutybut does not relieve excise duties. Import VAT is not due when entered to IPR suspension (seeparagraph 1.6) but is due if entered to IPR drawback (see paragraph 1.7).

Processing can be anything from repacking or sorting goods to the most complicated manufacturing.You may also obtain relief if you receive IPR goods from another approved trader in the UK or anotherMember State. If you dispose of the finished goods other than by re-export, you may still be able to claimrelief (see sections 12 and 15).

Section 25 lists EC and non EC territories for the purposes of customs duty and VAT.

1.4 Who can use IPR

Individuals, partnerships or corporate bodies established within the European Community, acting ontheir own behalf or representing a non Community body;

individuals, partnerships or corporate bodies established outside the European Community providedimports are of a non commercial nature.

1.5 How IPR works

There are two methods of duty relief, suspension or drawback. In either case there must be an intention tore-export goods from the EC and an authorisation to enter goods to IPR will be required. Goods must beprocessed within a certain period and records kept for all operations carried out. If you use suspension youwill also be required to submit returns detailing your receipts and disposals.

There are five types of authorisation, see paragraph 2.2. Processing of certain goods (see section 26) aresubject to a monetary limit of 150,000 per 8 digit CN code, per applicant, per calendar year. If the value ofthese goods entered to IPR exceeds this limit and does not involve one of the processes listed in paragraph4.1, an economic test must be carried out by DEFRA. No economic test is required for goods not listed insection 26.

1.6 Suspension

Customs duties are suspended when the goods are first entered to IPR in the EC. Import VAT is not dueunless the goods are released to the Community market. If you plan to export all your IPR goods or products,transfer them to another IPR authorisation holder or dispose of them in one of the other ways listed in section15, suspension is likely to be the most suitable method for you.


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If you plan to export or transfer only a percentage, suspension can be used for that percentage of yourimports/receipts, based on a reasonable estimate. The remainder should be entered to free circulation withfull payment of duty and import VAT (unless another duty or VAT relief is available).

If you import/receive more goods under IPR suspension than you need for your export market or other eligibledisposals, you will have to divert the surplus goods to free circulation. You will have to pay the suspendedduty and import VAT and will also be charged compensatory interest from the date the goods were importedto the EC (see section 17).

The goods listed in paragraph 27.2 must be entered to suspension. These include agricultural goods, somelicensable goods (mostly textiles) and any goods you intend to process under IPR in a Customs warehouseor Free Zone (see section 19). The conditions for using suspension are listed at section 28.

1.7 Drawback

Customs duties and import VAT are paid when the goods are entered to IPR. You claim duty back only if youexport the goods or products, transfer them to an IPR suspension authorisation holder or dispose of them inone of the other ways listed in section 15. You may be able to reclaim the import VAT as input tax. You willnot be able to reclaim duty on goods you destroy under Customs supervision or on any waste and scrapwhich results from that destruction.

Except for goods listed in paragraph 27.2 which cannot be entered to drawback, this method may suit you if

you do not know how much of the goods you receive will be exported etc and you will not be chargedcompensatory interest on any goods you release for use on the Community market. The conditions andrestrictions for using drawback are listed at section 27.

If you need help to decide which method is best for your business, contact our National Advice Service.

1.8 How best to use this notice

To qualify for relief certain conditions and requirements need to be met and followed. This Notice will help youdecide:

1 If your goods are of a type that can only be entered to suspension, (see paragraph 27.2)2 The economic code under which your application will be made.

If an economic test is required you will need to provide supporting evidence (see paragraphs 2.4,

section 6 and section 30)3 The type of authorisation you will need and how to apply for it (see paragraph 2.2)4 How long you will need to be authorised for (see paragraph 2.6)5 What records you need to keep (see paragraph 3.12)6 How to enter goods to IPR (see paragraph 10.1)7 How long you need to process the goods (see paragraph 3.1)8 How you will account for and complete IPR including accounting for any by-products (see sections

11 and 15)9 What returns or claims you need to make to Customs (see section 16)10 How to receive or transfer IPR goods (see section 12)11 Any simplified procedures you could use (see section 49)

1.9 What law covers this notice?

The law on IPR is published in the Official Journal of the European Community under Council Regulation(EEC) No 2913/92 establishing the Community Customs Code and Commission Regulation (EEC) No2454/93 which lays down provisions for its implementation. Section 48 identifies some of the RegulationArticles that apply.

EC law on import VAT relief is contained in the 6th VAT Directive which is interpreted into UK law in the ValueAdded Tax Act 1994 under which authority for the Value Added Tax Regulations 1995 were made. OtherNational provisions and VAT Directives may also apply.

1.10 Where can I obtain further information about IPR?

This notice sets out the general principles of IPR; it does not attempt to explain every aspect in detail. Youcan get further information by phoning our National Advice Service. If you have access to the Internet, youcan visit:

our Internet website at www.hmce.gov.uk; or,

the EC Commission website at www.europa.eu.int (we cannot provide any warranty as to theaccuracy or completeness of this site).


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If you want to discuss how IPR may assist your planned export operations, you can contact the Departmentof Trade and Industry (DTI) or the Department for Environment, Food and Rural Affairs (DEFRA).

Copies of the Official Journal can be obtained from:

The Stationery OfficePO Box 29Norwich

NR3 1GNTelephone orders/General enquiries 0870 600 5522Fax orders 0870 600 5533E-mail: [email protected]: www.stationeryoffice.com

or from:

The Stationery Office Bookshopssee Tariff, Volume 1, Part 1 Section 1.


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2. General information about authorisation

This section explains the different types of authorisation available and how to apply for them.

2.1 Why do I need an authorisation?

You need to be authorised to import or receive IPR goods to be eligible for duty relief. Authorisations areissued to the person who processes the goods or arranges for them to be processed on their behalf. If yousubcontract processing the subcontractor must either hold their own authorisation or be named on yourauthorisation.

2.2 What types of authorisation are there?

There are five types of authorisation:

Simplified (UK only) see section 4;

Local (UK only) see section 5;

Specific see section 6;

Single Community see section 7; and

Integrated see section 8.

2.3 How do I know which one to use?

Which type of authorisation you need will depend on:

whether you intend to enter goods listed in section 26;

value of the goods;

the nature of the processing involved;

the economic code you apply under (see section 30);

whether you import or receive goods from another IPR trader;

the number of entries you intend to make, for example if you make infrequent entries you may find iteasier to use a simplified authorisation (see section 4);

if you want to apply to use any simplified procedures within IPR (see section 49) these require priorapproval;

if you want to use equivalence (see section 13); or

if you want to use CFSP for declaring goods to IPR.

2.4 What is an economic code?

These codes are used to identify the reasons for using IPR. When you apply for an authorisation you willneed to quote the economic code under which your application is being made, see section 30. This applieseven if the application is not required to undergo an economic test (see paragraph 3.10).

2.5 How long does authorisation take?

If you apply for an authorisation using form C&E 810 (see paragraphs 5.2 and 6.2) you should be informed ofthe decision to grant or reject the application within 30 days of Customs receiving the application. However,this period will not start until all the necessary information required is received. When an authorisation isissued you will only be approved to receive goods under IPR that are specified in your authorisation.

2.6 How long does an authorisation last?

The length of time an IPR authorisation can be used will depend on the type of goods and processinginvolved. Except for Simplified authorisations, where the period of authorisation is limited to the periodrequired to process and re-export the goods (see section 4), all other types of authorisation should not

normally exceed 3 years from the date the authorisation takes effect. However restricted periods ofauthorisation do apply to certain agricultural goods:

6 months in the case of agricultural products listed in paragraph 26.1;

3 months for dairy products referred to in Article 1(1) of Council Regulation (EC) No 1255/99 (seesection 33).


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Except for these goods longer periods may in certain circumstances be approved where there are dulyjustified good reasons, for example a fixed term contract or commercial agreement. You should contact yoursupervising office for specific details.

2.7 Responsibilities of the authorisation holder

As the authorisation holder you will be responsible for the duty and associated charges on all goods enteredunder your authorisation, whether or not you own them. This includes goods entered under the authorisation

by any named processors until they are put to an eligible disposal (see section 15). Other companiesincluded as named processors may only receive, process, dispose or transfer IPR goods as specified in theauthorisation. You should make your own arrangements to indemnify yourself with any suppliers/customers/associated companies included in your authorisation in the event of an ineligible entry or disposal.

You will be responsible for ensuring:

entries on Form C88 (SAD) are correctly completed using the appropriate IPR CPC (see paragraph10.1);

that any processor named on your authorisation or third party such as agents or freight forwarders,who enter IPR goods under the authorisation, are given clear written instructions of the goods to beentered and procedures to be followed (see paragraph 10.2);

the correct transfer procedures are used for IPR goods received or transferred (see sections 12 and15);

records are kept of all operations carried out under your approval (see paragraph 3.12);

goods are pre-entered at export (unless simplified clearance procedures are approved) see paragraph15.3, using the appropriate IPR export CPC (see paragraph 29.8 and 29.14) and for keeping evidenceof their disposal (see section 37);

the payment of duty, import VAT (and compensatory interest) for suspension goods diverted to freecirculation, (see paragraph 15.27 and section 17);

returns of receipts and disposals of IPR suspension goods and requests for repayment of IPRdrawback goods are made by their due date (see section 16);

amendments or alterations to your authorisation are notified in writing to your supervising Customsoffice (see paragraph 2.10);

for applying to renew your authorisation (see paragraph 2.11);

security by cash deposit or bank guarantee is made where required (see paragraph 2.8).

2.8 Do I need to provide security?

Security will not usually be required (except for transfers of certain goods considered to bear increased risks,see paragraph 12.2) however it may be requested if you do not fulfil your obligations under your authorisationeg fail to submit suspension returns, fail to pre enter goods at export etc. If required your supervising officewill contact you with the details.

2.9 Refusal of an application for authorisation

Except where a single Community authorisation is applied for, we are required to issue a decision on yourapplication within 30 days of receipt of all necessary information. If your application is refused you will not beeligible to claim the relief.

You have the right to appeal against the decision, section 50 of this notice explains the appeal procedure.

2.10 Can I alter or amendment my authorisation?

Yes - if any details of your business (ie name, address or ownership) change, you must advise yoursupervising office. If it involves a change of name or ownership you may have to re-apply for authorisation inthe new name. As the authorisation holder you must ensure that all details relating to the authorisation remaincurrent and correct.

If you need to make any changes to the terms and conditions of your authorisation, contact your supervisingCustoms office. If you have a Single Community authorisation Customs authorities in other Member Statesmay need to be consulted. If appropriate, a new authorisation will be issued.


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2.11 How do I renew my authorisation?

You should apply in writing to your supervising office no later than one month before your authorisationexpires. You must advise us if any of the relevant facts (on your original application), have changed.

The authorisation holderis responsible for applying for a renewal if it is still required. Supervising offices donotissue reminders.

2.12 How do I cancel my authorisation?You can cancel your authorisation at any time by writing to your supervising office. In your letter you mustgive the date by which all of your IPR goods will have been correctly disposed of.

Customs may also annul or revoke an authorisation if they find that it has been issued on the basis ofincorrect or incomplete information or when conditions of IPR have not been met. If this happens you will benotified in writing.

2.13 Customs checks

You may receive a visit from your supervising office to ensure that your records and systems are adequatefor Customs purposes and to clarify details of the goods that you enter and process. During your period ofauthorisation further visits may be made to inspect your records and to ensure that you are complying with allconditions of the authorisation.

If you have a Single Community authorisation issued in the UK, a UK Customs office will be your supervisingoffice. Visits to check operations or records in another Member State may be made by Customs in thoseMember States. These arrangements will generally have been agreed with the UK supervising office whenthe authorisation was considered.

If a Single Community authorisation is issued in another Member State, Customs in that Member State will beresponsible for monitoring your operation. They may request information from UK Customs or require UKCustoms to carry out checks on your operations in the UK.


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3. Application conditions and requirements

This section gives guidance on the various aspects of IPR that need to be considered when completing anapplication.

3.1 Period required to enter process and dispose of IPR goods

This is known as the "through-put period".

The period starts either from the date you import to IPR or the date goods were transferred to you. You needto specify on your application the period you require to meet your business needs. As a general rule theperiod should not normally exceed one year but in certain industries longer periods may be required eg foraircraft and the Continental Shelf, where there are sound business reasons these will be approved. ForSimplified authorisations (see section 4) a standard 6 months will apply unless you indicate adifferent period on the form C101.

If, after authorisation, you find you need a longer period you should contact your supervising office and applyin writing for an extension. The period may also be extended after the original period has expired providedyour records are sufficient to show that the goods are still under IPR supervision.

If you are approved to use CFSP, the through-put period will commence either on the day of acceptance ofthe simplified declaration or, where local clearance procedures are approved, the date when the goods leave

temporary storage.

3.2 Inventory system

This system provides for the throughput period to be automatically extended for all goods (except agriculturalgoods listed in paragraph 3.3) that remain in stock at the end of your agreed throughput period. This can beagreed provided your records are sufficient to show that the goods are still under IPR supervision.

3.3 Restricted through-put periods

For certain agricultural goods the period is restricted as follows:

4 months for certain dairy products referred to in Article 1(1) of Council Regulation 1255/99 (seesection 33);

2 months in the case of slaughter without fattening of animals referred to in Tariff Chapter 1;

3 months in the case of fattening (including slaughter where relevant) of animals which fall under CNcodes 0104 and 0105;

6 months in the case of fattening (including slaughter where relevant) of other animals referred to inthe Tariff Chapter 1;

6 months in the case of processing of meat;

6 months in the case of other agricultural products of a kind eligible for advance payment of exportrefunds referred to in Article 1 of Council Regulation (EEC) No 565/80 and processed into products orgoods referred to in Article 2(b) or (c) of the same Regulation (see section 34).

Where successive processing is involved or there are duly substantiated exceptional circumstances, the

above periods may be extended on written request but the total period from entry to disposal must not exceed12 months.

3.4 Compensating products

Compensating products are all the products resulting from processing operations under IPR including by-products. When you apply for an authorisation you must state all the products you obtain from the goods youimport/receive under IPR and indicate which of those products are your main compensating products (MCPs)andany secondary compensating products (SCPs). You will also need to state how the IPR goods will beidentified in the processed product.

All products which are a necessary by-product of producing your MCP(s) are secondary compensatingproducts (SCPs), they are not to be treated as waste or scrap. They are not the same as production losseswhich must be taken into account when establishing the rate of yield for the processing operation beingcarried out, see paragraph 3.6.

If you use production accessories, catalysts or agents etc, see section 23.

For IPR purposes the term "waste and scrap" only applies to goods destroyed under Customs supervision,see paragraph 15.30.


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3.5 Reduced rates of duty on secondary compensating products (own rates)

If, as a result of your processing operation, you have SCPs and put them on the Community market, you willgenerally pay duty at the rate appropriate to the goods originally imported. You may however be able to pay areduced or nil rate of duty ie the rate applicable had the SCP itself been imported. This rate is referred to asthe "own rate" but can only be considered in proportion to the quantity of MCPs exported from theCommunity.

Your authorisation will state whether any SCPs you produce may be eligible to an own rate. The list of SCPsto which own rates of duty could be applied are set out in Annex 75 of Commission Regulation (EEC) No2454/93.

To find the duty rate you can look in the Tariff under the CN code for the SCP. Contact the National AdviceService for further details or look on the Commission internet site (see paragraph 1.10).

3.6 Rate of yield

Rate of yield is the quantity of processed products (compensating products) made from a unit quantity ofgoods entered to IPR. This can include production accessories or catalysts not found in the compensatingproduct, see section 23.

The expected rate of yield or the method by which it will be calculated must be specified in your application.How the rate will be established will be confirmed in your authorisation. If your application includes more thanone processing operation, you must give the rate of yield for each processing operation at each locationtaking account of:

the quantity of main compensating products (MCPs) produced ie products for which use of IPR isapplied for;

the quantity of any other products that are a necessary by-product of producing your MCP(s) iesecondary compensating products (see section 44);

goods lost or used up during processing (production losses) such as loss through evaporation,desiccation, venting as gas or leeching; and

(if applicable) the quantity of production accessory used to aid the production of IPR goods oraccessory used to process a unit quantity of free circulation goods for export.

If you dispose of the same goods as you receive, the rate of yield is 1:1. This is likely for goods for repair orfor minor activities under usual forms of handling(see section 32).

If you receive many different IPR goods to make a single product, then the rate of yield is expressed as somany of each IPR item to one product you export or dispose of for example 3 metres of cloth, 4 metres ofcotton and 6 buttons to each shirt.

If you receive one IPR item and split it up into many different products, the rate of yield is expressed as thequantity of IPR item that produces so much of each product (main compensating products) and what is left asa result of producing those products (secondary compensating products) eg. 1000 kg of timber produces 14tables, 12 chairs and 2 bookcases (MCPs) and 50 kg of wood/waste/cuttings/sawdust (SCP).

In cases where the rate of yield is not known at the time of application or the rate may vary, you should recordon your application that you intend to use your production records as the basis for establishing the rate. If you

have entered the rate of yield on the application/authorisation form and the rate of yield changes or isincorrect, you must inform your supervising office immediately.

3.7 Rate of yield (processing/trimming of beef fillets)

If you import or receive beef fillets for processing, the rate of yield must accurately reflect the amounts usedto produce your main compensating product(s) and the amount of secondary compensating products whichincludes what you might consider to be waste. The SCP can qualify for a nil rate of duty provided it is unfit forhuman consumption.

If you intend to apply for an authorisation to process beef fillets you should contact our National AdviceService.

3.8 Standard rates of yield for agricultural goods

For certain processing operations on agricultural goods, Community law sets standard rates of yield that mustbe used, these are based on information obtained from all Member States and lay down the quantities ofcompensating products deemed to be obtained from a given quantity of imported goods. They apply only togoods of sound, genuine and merchantable quality. Using a standard rate of yield:

puts you on the same footing as other processors in the Community;


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gives you firm figures on which to account for your products, regardless of minor fluctuations in actualyields;

simplifies your IPR planning and administration; and

allows you, when you exceed the standard rate of yield for the main product, to dispose of the excesson the Community market without paying import charges.

Details of how to use a standard rate of yield is given in paragraph 11.3.

3.9 How to check if a standard rate of yield applies

The list of standard rates of yield are published in the Official Journal of the Community (OJ) and are set outin Annex 69 of Commission Regulation (EEC) No 2454/93. The Annex identifies in column 5 the rates of yieldto be applied to a fixed quantity of goods identified in column 1.

Where processing under IPR is identical with those carried out to obtain "export refunds", column 5 of theAnnex will be noted with an asterisk. In these cases the standard rate of yield is calculated by converting thecorresponding export refund co-efficient contained in Commission Regulation 1520/2000 Annex E. To obtainthe standard rate of yield the following conversion is applied:

1 x 100

Export refund co-efficientIf a standard rate of yield applies to the goods you process, the rates of yield will be stated in yourauthorisation. If you cannot produce the quantity of products specified for your particular process or intend toproduce from any of the import goods, products not identified in the standard rate of yield, write to yoursupervising office giving details of the import goods, the processes, your rates of yield and any other relevantinformation.

3.10 The economic test

Where the application requires an economic test (see paragraph 6.1) you will need to provide evidence withyour application why you cannot use Community produced goods. Enter the appropriate economic code andattach any supporting evidence in respect of each code you have quoted. Your application cannot beexamined without such evidence and may be returned to you if the information is not provided. section 30

details the type of evidence required to support your application. Contact our National Advice Service fordetails of where to send your completed application.

3.11 Who carries out the test?

This will be carried out by DEFRA. They may contact you direct for additional information if necessary. Wewill also consider your application to examine the other conditions attached to the authorisation. If we aresatisfied and DEFRA recommend that the economic conditions are met, you will be issued an authorisationdetailing any conditions relating to its use and an IPR authorisation number. The Customs office responsiblefor your authorisation will be your supervising office.

Any authorised values and/or quantities are the maximum you can enter and apply to the period of approvalgranted. They should not be treated as annual figures unless otherwise stated. If you need to change thevalue or quantity limit you must apply before that limit is exceeded. This will be treated as a fresh applicationand will be referred to DEFRA for a further examination of the economic conditions.

3.12 Records

You must keep records of all goods you enter to IPR. These must show:

details of the quantities of goods entered to IPR, if your authorisation restricts the quantity or value ofgoods on which you may claim IPR, it will be your responsibility to ensure that you do not exceed thelimits. You will therefore need to ensure that your records enable you to monitor the amount of goodsyou enter to IPR;

what goods are entered ie the commercial or technical description of the goods sufficient to identifythem (this should correspond to the description of goods that will be stated in your IPR authorisation);

when and where goods were entered to IPR including transfers received and documents relating totheir entry;


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where all goods and compensating products held under the authorisation are held at any timeincluding any movement of goods and compensating products to or between operators specified in theauthorisation (for single Community authorisations referred to in paragraph 7.2, Customs authorities inother Member States where operators are located, will usually require the operators to have basicstock records showing what goods or products the operator has received and how they have beendisposed of);

what processing is carried out on the goods;

locations where processing takes place;

how goods entered to IPR are identified in the products produced, for example manufacturers marks,serial numbers, plumbs, seals, clip marks, other marks fixed to the compensating product, samples,illustrations, technical descriptions, analysis or other supporting documents that clearly show thecompensating product has been manufactured from your IPR goods;

production data that establishes the rate of yield achieved ie how many products are producedincluding any secondary compensating products (by-products) (see section 44); and

when and where goods were exported or disposed of including documents relating to their disposal.

3.13 Using normal commercial records

You can normally use your commercial records but we may ask you to adapt them to provide the informationneeded to claim relief.

If you intend to keep computerised records you must advise us when you apply for authorisation to ensurethat these records meet the requirements of IPR. You will be required to provide any technical informationand assistance we may need in order to check them.

3.14 How long records must be kept for

You must keep your records for four years after you dispose of the goods.


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4. Simplified authorisation

4.1 When can I use a simplified authorisation?

This may suit you if you only make occasional imports to IPR and processing operations are solely carried outwithin the UK. You can also use it to remove goods from a customs warehouse or Free Zone. Application ismade on Form C101 and presented with the import declaration, see paragraph 4.3.

Any goods that do not appear in section 26 may be entered to IPR using a simplified authorisation. Section26 goods may also be entered provided the application concerns:

operations of a non commercial nature, in other words goods which are your own personal property orthe property of members of your family;

a job processing contract (any processing of imported goods that are directly or indirectly placed atyour disposal by a non EC customer and processed according to their specifications, generally againstprocessing costs alone);

usual forms of handling (see section 32);

repair (including overhaul and adjustment);

processing of durum wheat falling within CN code 1001 10 00 to produce pasta falling within CNcodes 1902 11 00 and 1902 19;

the value of the goods imported per applicant, per calendar year for each 8 digit CN code does notexceed 150,000.

4.2 Are there any other restrictions on the use of simplified authorisation procedures?

If you wish to use IPR for any of the following reasons, you must apply for either a local (see section 5) ofspecific authorisation (see section 6) using form C&E 810. You cannot use the C101 procedure because thesimplifications and procedures involved require prior approval by Customs.

use economic code 99 (other reasons) - you will need to explain the reasons on your application.Because of this you will need to apply for a local authorisation, unless a specific authorisation isrequired, see section 6;

import firearms, ammunition or nuclear materials;

use equivalence, prior export equivalence or triangulation (section 13);

use simplified procedures for transferring IPR goods within the UK or to other Member States (section12);

use the simplified procedures for the aircraft industry and building of satellites (section 18);

use simplified procedures to process IPR suspension goods in a customs warehouse or free zone(section 19);

use simplified procedures for commissary stores (see paragraph 15.18);

cut, slice or cook meat for airline meals;

use a simplified import or export procedure such as CFSP/ NES ;

import catalysts, agents or production accessories to assist in the manufacture or processing ofCommunity goods for export (section 23);

process ozone depleting substances (see paragraph 10.9);

use the Tax free shopping scheme (see section 21);

import goods referred to in paragraph 26.1, where the RPA have issued a document permitting entryto IPR within limits determined on the basis of a supply balance under Council Regulation (EC) No.3448/93 Article 11 (see paragraph 24.3).

Goods listed in Annex 44c of Commission Regulation (EEC) No 2454/93 where a guarantee is

required (see paragraph 12.2).4.3 How do I apply?

Application prior to entry to IPR is not necessary as it is accepted that the goods and processes allowedunder this type of authorisation do not harm the essential interests of Community producers.


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Each time you enter goods to IPR you will need to complete form C101, 2 copies for IPR drawback or 3copies for IPR suspension and an entry on form C88 (SAD), see paragraph 10.1. Attach the first copy to theentry form C88 (SAD). In Box 37 of the SAD enter the relevant CPC, see paragraph 29.1. Copy 2 of the C101should be retained in your records. If you use IPR suspension copy 3 serves as the suspension return andshould be submitted to NIRU at the end of the period allowed for disposal of the goods, see paragraphs 3.1and 16.1. Guidance notes on completing the C101 are included on the form, see section 31.

Acceptance of the entry under the economic code you quote will be your authorisation, your authorisation

number will be the C88 entry number. A third party who has your written permission to enter on your behalfmay also complete and sign the C101, see paragraph 10.2.

After the goods have been entered, your entry and C101 will be sent to NIRU who are responsible for theC101 system. All enquiries about goods you intend to enter or have already entered using a C101 should besent to:

National Import Reliefs UnitCustom HouseKillyhevlin Industrial EstateEnniskillenBT74 4EJ

Tel: 028 6632 2298

Fax: 028 6632 4018Email: [email protected]

If you make a number of entries each year using C101s or use a C101 for some of your entries and adifferent type of authorisation for others, you may be asked to direct all your enquiries to your local Customsand Excise supervising office.

If you use the C101 system when you should not, you may not get relief even if you transfer the goods toanother IPR operator or export them.


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5. Local authorisation (UK only)

5.1 When might I need a local authorisation?

This type of authorisation is ideal if you frequently import and process IPR goods, as you avoid having tocomplete a C101 for each importation. It can also be used if you wish to apply to use CFSP or any of thesimplifications in paragraph 4.2 that are excluded under the C101 procedure. All goods and processes which

are eligible for a simplified authorisation are also entitled to use the local authorisation procedure.In addition the following may also be authorised:

successive processing - compensating products obtained under an authorisation that was subject toan economic test carried out in the UK or another Member State, do not require an economic test.However, evidence that an economic test has been carried out will be required;

agricultural products referred to in paragraph 26.1, where the RPA have issued a documentpermitting entry to IPR within limits determined on the basis of a supply balance under CouncilRegulation (EC) No. 3448/93 Article 11 (see paragraph 24.3);

economic code 99 (other reasons) - if you use this code, you will need to explain the reasons onyour application.

5.2 How do I apply for a local authorisation?

You will need to complete form C&E 810, guidance notes are included on the form, see section 36. If yourapplication covers more than one company in the UK give details of the goods to be entered and operationsto be carried out by each processor including the sequence and locations. Contact our National AdviceService for details of where to send your completed application.

If agreed you will be issued an authorisation detailing any conditions relating to its use and an IPRauthorisation number. The Customs office responsible for your authorisation will be your supervising office.

You should apply at least one month before you first intend to import or receive IPR goods. If you wish toenter goods to IPR before the result of your application is known, you can use the C101 system detailed insection 4, provided you are eligible to do so and do not use any of the procedures which are excluded undera simplified authorisation.


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6. Specific authorisation (UK only)

6.1 When might I need a specific authorisation?

This type of authorisation will be needed if you intend to import or receive goods listed in section 26 and thevalue of the goods to be entered exceeds 150,000 per 8 digit CN code, per calendar year, unless theapplication concerns:

operations involving goods of a non-commercial ie goods which are your own personal property or theproperty of members of your family;

a job processing contract;

successive processing of compensating products obtained under an authorisation which was subjectto an economic test (evidence that an economic test has been carried out will be required);

usual forms of handling (see section 32);

repair;

processing of durum wheat falling under CN code 1001 10 00 to produce pasta falling under CNcodes 1902 11 00 and 1902 19.

an economic test will be required and you will need to provide evidence why you cannot use Communityproduced goods, see paragraph 3.10.

If you are using IPR under the terms of a supply balance (see paragraph 24.3), the quantity limits allowed bythe supply balance certificate can be added to the 150,000 limit before an economic test is required.

6.2 How do I apply for a specific authorisation?

You should apply at least two months in advance.

You need to complete form C&E 810, see section 36. If your application covers more than one company inthe UK give details of the goods to be entered and operations to be carried out by each processor includingthe sequence and locations. Please contact our National Advice Service for details of where to send yourcompleted application.

If exceptionally you wish to import or receive goods before the result of your application is known, contact theCustoms office where your

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