Guidance

Requested Procedure 11: Inward Processing Prior Export Equivalence

Updated 6 July 2024

Known error workarounds may apply to this area of the instructions.

This Appendix contains the specific completion rules instructions for the 11-series Procedure Codes for Data Element (DE) 1/10 for Exports.

Use the index list below and the Procedure Codes completion notes to help you identify the correct code to use and for guidance on how to complete the declaration.

This Appendix includes Procedure Codes:

1100

Notes:

The completion notes in this Appendix are a supplement to the main CDS Declaration Completion Instructions for Exports.

This Appendix only contains any additional completion notes for each 4-digit Procedure Code and does not constitute full guidance on how the declaration should be completed.

Only one 4-digit Procedure Code can be declared against each goods item in DE 1/10, however, this may be tailored to the specific circumstances for the goods treatment by the use of multiple Additional Procedure Codes in DE 1/11.

These completion notes are supplemented by the DE 1/11 Additional Procedure Code Notes and therefore any instructions relating to the Additional Procedure Code (3-digit code for DE 1/11) are not included here and must be read in addition to this Appendix.

General declaration completion notes

Where information may be entered at Header or Item level:

• It may only be entered at header level where it applies equally to every goods item. This restriction does not apply to DE 7/10 and DE 7/18 where seals information is required for pre-departure declarations
• Information must be entered at item level where it differs for even a single goods item

However, please note that while DE 3/39, 8/2 and 8/3 are header level only data elements, they do not have to apply equally to all items on a declaration.

1100:

These completion notes should be read in conjunction with the main CDS Declaration Completion Instructions for Exports. These are additional notes on specific declaration data elements in relation to this procedure code and do not constitute full guidance on how the declaration should be completed.

Description of Procedure:

The use of this procedure code is a declaration by the Exporter that the conditions laid down in Council Regulation (EU) No. 952/2013, Commission Delegated Regulation (EU) No. 2015/2446 and Commission Implementing Regulation (EU) No. 2015/2447 are met.

This procedure is to be used for equivalent Union goods or free circulation and home use goods being entered to the export procedure, for permanent export outside the territory of the Customs Union, using Inward Processing (IP) prior export equivalence (PEE).

Conditions for Use:

This procedure code may only be used with a full, authorisation for IP PEE valid at the time of exportation, see conditions and requirements detailed in ‘Pay less or no duty on goods you store, repair, process or temporarily use’.

Evidence must be held and made available to Customs on request, demonstrating the audit trail between the exported equivalent goods and the subsequent importation of replacement products.

Evidence of export must be retained to support the completion of the bill of discharge for IP following subsequent importation of replacement products.

Failure to demonstrate appropriate discharge of IP through permanent export may result in a demand for the revenue suspended under IP being issued.

The MRN of this export declaration must be included as a previous document reference on the subsequent import of the replacement products in DE 2/1 of the import declaration.

Declaration category C1 C&F (Simplified Declaration Procedure (SDP) regular use) - these goods must be entered by or on behalf of the IP authorisation holder whose PEE authorisation must include approval to use SDP (regular use).

Where an Indirect Representative is used, they must be approved to use SDP (regular use) at export and be named on the IP authorisation under which the PEE goods are exported.

These notes must be read in conjunction with the appropriate completion notes for the Additional Procedure Code used on the declaration (DE 1/11).

Restrictions on usage:

The subsequently imported replacement products must be declared using Procedure Code 5111 in DE 1/10.

A full IP authorisation, valid at the time of exportation, is needed to use this customs procedure, see conditions and requirements detailed in ‘Pay less or no duty on goods you store, repair, process or temporarily use’.

Authorisation by Customs Declaration cannot be used with this Procedure Code.

Where the additional declaration type used in DE 1/2 is: A or C, one of the following applies:

• Where the goods are being exported via an arrived only export Goods Vehicle Movement System (GVMS) location and a Customs Supervised Exports (CSE) authorisation is not being used, DE 3/39 must include authorisation type code EXRR.
• A Customs Supervised Exports authorisation is being used DE 3/39 must include authorisation type code CSE. If a CSE authorisation is being used for an export via an arrived only export GVMS location, then DE 3/39 must not include EXRR.
• Where goods are being exported from GB as Merchandise in Baggage, DE 3/39 must include authorisation type code MIB. Note: Exports of Merchandise in Baggage from GB are only permitted to use Additional Declaration Type code A.

Where the additional declaration type used in DE 1/2 is: C, F or Y authorisation to use the SDP (regular use) must be held.

Goods must not be in customs, excise or VAT suspense.

SDP (regular use) cannot be used to declare controlled drugs or controlled goods under this Procedure Code.

This Procedure Code cannot be used with Entry in Declarant’s Records (EIDR).

Notices:

Check if you need to declare goods you bring into or take out of the UK

Information can be found on Inward Processing on GOV.UK:

Apply to delay or pay less duty on goods you import to process or repair
Pay less or no duty on goods you store, repair, process or temporarily use
VAT on goods exported from the UK (VAT Notice 703)

Declaration category:

B1 and C1 C&F

Declaration Type (DE 1/1):

Enter code: EX

Additional Declaration Type (DE 1/2):

The following codes may be entered for this Procedure Code: A, C, D, F or Y.

Simplified Declaration/Previous Document (DE 2/1):

For exports, the MUCR (using document type code MCR) and the DUCR (using document type code DCR) and any associated part numbers (document type code DCS), must always be declared at header level.

Other previous document type codes may be declared at either header or item level. Please refer to CDS Declaration Completion Instructions for Exports, DE 2/1 for details.

The list below details the Previous Document reference types to be used in specific circumstances for this Procedure Code. Please refer to Appendix 3: DE 2/1 Previous Document Codes for alternative codes which may be used if the circumstances below do not apply:

Document category	Previous document type	Previous document reference	Goods item identifier (where applicable)
Y (completed on supplementary declarations only – elements SDE*, DCR and DCS must be repeated as necessary)	SDE (to represent the simplified declaration)	For SDE: Enter the MRN for the simplified declaration	Enter the goods item number from the simplified declaration (SDE)
Y (completed on supplementary declarations only – elements SDE*, DCR and DCS must be repeated as necessary)	DCR (to represent the DUCR)	For SDE: Enter the DUCR assigned in the commercial records to the consignment	—
Y (completed on supplementary declarations only – elements SDE*, DCR and DCS must be repeated as necessary)	DCS (to represent any DUCR part no’s)	For SDE: Enter any part numbers associated with the DUCR	—
Z (to represent the previous document)	ZZZ (for any other previous reference)	Enter another recognisable reference number (for example stock reference)	Enter the goods item number from the previous document
Z	DCR (to represent the DUCR)	Enter the DUCR assigned in the commercial records to the consignment (as appropriate)	—
Z	DCS (to represent any DUCR part no’s)	Enter any part numbers associated with the DUCR (as appropriate)	—
Z	MCR (to represent the MUCR)	Enter the MUCR assigned to the goods	Enter the goods item number from the goods manifest

*Please note that SDE represents the Simplified Declaration Procedure (SDP) regular use.

Additional Information (DE 2/2):

Please refer to Appendix 4: DE 2/2 Additional Information Statement Codes for the relevant codes and details to be declared (for example, GEN45, inward processing work reference number).

Appendix 4 includes the codes for all AI statements that may be used on CDS. Where both Union and National AI statements are being declared, enter any Union AI statements first. Union AI statements will begin with a number.

The following AI codes may be required in DE 2/2:

Coverage	AI statement code	Details to be declared
Consignment/work number	GEN45	Enter the unique reference number, allocated to the consignment/work by the authorisation holder
Use with A.86(3) UCC debt rules only: Declaration that the IP authorisation holder is intending to use the Council Regulation (EU) No. 952/2013, Article 86(3) customs debt rules for the subsequently imported replacement goods. This AI code must be used with DE1/11 Additional Procedure Code F44. See Appendix 2: DE1/11 Additional Procedure Code notes for details	GEN86	Enter ‘Article 86(3)’
Export, re-export or dispatch from a special procedure of goods of non-statistical interest	NSTAT	Enter: ‘NON-STAT’

Documents produced, certificates and authorisations, additional references (DE 2/3):

Please refer to Appendix 5: DE 2/3 Documents and Other Reference Codes for the relevant document codes, document status codes and details to be declared (for example, licences and certificates). Where both Union and National document codes are being declared, enter any Union codes first. Union codes will begin with a letter.

Appendix 5 includes the codes for all documents, references and authorisation types that may be used on CDS. For example, C676 for CSE authorisation. Where authorisation document codes are declared in DE 2/3, the corresponding Economic Operation and Registration Identification (EORI) number of the authorisation holder must be declared in DE 3/39 against the appropriate authorisation type code.

Required on all IP declarations:

Enter the IP authorisation number being used to export the goods under IP PEE:

Document code	Document identifier: country code	Document identifier: authorisation type code	Document identifier: authorisation number
C601	e.g. GB	IPO	IP authorisation number

Document code	Document identifier	Document status
C606	Enter the INF5 reference number	Use document status code AE if authorised for globalised INF5s (certification not required) Otherwise, use status code AC if certification is required

Holder of the authorisation identification number (DE 3/39):

Please refer to Appendix 6: DE 3/39 Authorisation Type Codes for the list of codes to be declared (for example, CSE to be declared when Customs Supervised Exports is being used). The Authorisation Type Code and relevant EORI number for the authorisation holder must be declared for each type of authorisation required in order to declare the goods to the procedure concerned. The corresponding authorisation decision number must be declared in DE 2/3 against the appropriate document code.

Authorisation type	Authorisation type code	Identifier
Authorisation for the use of inward processing procedure	IPO	Enter the EORI number of the IP authorisation holder

Where goods are being exported from GB as Merchandise in Baggage, the following code must be declared in DE 3/39:

Authorisation type	Authorisation type code	Identifier
Merchandise in Baggage	MIB*	Enter the EORI number of the Exporter.

*MIB is not permitted for exports from Northern Ireland.

The following code must be declared in DE 3/39 where an arrived export declaration is made at one of the listed locations (where CSE is not held).

For more information read Locations you need to submit an ‘arrived’ export declaration before moving goods.

Code	Description
EXRR	Submission of an arrived export declaration (where CSE Authorisation is not held)

Location of Goods (DE 5/23):

For goods being exported via a GVMS location, including arrived only GVMS locations, enter the appropriate goods location code from Appendix 16S: DE 5/23: Goods Location Codes: Goods Vehicle Movement Service.

For more information read Locations you need to submit an ‘arrived’ export declaration before moving goods.

Where MIB is being used to export goods, the location code declared in DE 5/23 for the arrived declaration should be the code for the port or airport that the goods will be exported through. This must not be a GVMS location code. Every location which has a GVMS location code, will have an alternative non-GVMS location code which can be used for MIB consignments.

For goods placed under the export procedure inland (i.e. CSE) enter the appropriate goods location code from Appendix 16L: DE 5/23: Goods Location Codes: CSE.

Where CSE is not being used, or where goods are not being exported at an arrived export declaration location, enter the location details as follows:

On pre-lodged declarations, the goods location should be declared, as detailed in the table below:

Enter the location details as follows:

Type of Authorisation held	Location Type Identifier	Location Details
Inward Processing	GBBYIP	Followed by the Inward Processing Authorisation number

On presentation and arrival at the UK border, the pre-lodged export declaration should be updated to show the border location of presentation.

Enter the location details appropriate to the border location where the goods are being arrived, using the appropriate code from Appendices 16A to 16H and 16J to 16L and 16R to 16S: DE 5/23: Goods Location Codes.

Supervising Customs Office (DE 5/27)

Enter the supervising customs office code applicable for the IP authorisation held from Appendix 17: DE 5/27 Supervising Office Codes.

Statistical Value (DE 8/6):

The statistical value is only required where there is no sales contract. The statistical value must include:

• The value of the previously imported unprocessed goods and
• The value added in the Union from processing

The statistical value must be declared in GBP (£ sterling) as the value of the equivalent products.

Additional Procedure Codes (DE 1/11):

The following Additional Procedure Codes may be used with Procedure Code 1100:

Union Additional Procedure Codes:

F44

National Additional Procedure Codes:

000, 1MB*, 1MP

*APC 1MB is not permitted for exports from Northern Ireland.

Notes:

The use of this procedure code is a declaration by the Exporter that the conditions laid down in Council Regulation (EU) No. 952/2013, Commission Delegated Regulation (EU) No. 2015/2446 and Commission Implementing Regulation (EU) No. 2015/2447 are met.

• Entry under this procedure code is an undertaking by the Exporter/ Representative to produce on demand by an officer of HMRC, commercial documentation as verification that the goods have been declared appropriately.
• Entry under this procedure code is an undertaking by the Exporter/ Representative to pay to the Commissioners of HMRC immediately on demand any duties or other charges due in respect of the goods in question if the conditions of the customs procedure are not met.
• If any of these criteria are not demonstrated to the satisfaction of HMRC then the revenue relieved at subsequent import will be payable and a penalty may also be charged.
• Procedure Codes on a Customs declaration must all be in the same declaration category e.g. B1.
• Code F44 may not be used on the subsequent importation to Procedure Code 5111, unless F44 is quoted on the export declaration (in DE 1/11 (Additional Procedure Code).
• Agents must have prior written approval from the authorisation holder to declare goods to this procedure code on their behalf and ensure a copy of the declaration is returned to the holder.
• Traders are reminded that failure to submit a Bill of Discharge, following the subsequent importation of the replacement goods, by the due date to their supervising office may lead to having to pay any suspended duty and VAT.
• Entry under this Procedure Code is a declaration that:
  • The goods being exported meet the conditions for PEE.
  • All other conditions and requirements associated with using the IP procedure will be met.

Security Required

Where export from the UK is made prior to import to another Member State form INF5 (Form C & E 1290) must be attached for CAP goods liable to a net export charge if exported as Union goods, exporters must provide security for the charges at the place of export, unless a guarantee has been lodged with the RPA.

VAT

Where goods are zero rated at export:

• VAT relief cannot be claimed on the subsequently imported replacement goods
• The terms and conditions stipulated in VAT on goods exported from the UK (VAT Notice 703) must be met
• Documentary evidence of export is needed to support the claim to VAT zero-rating
• The UK supplier must ensure that they obtain and keep official or commercial evidence for all consignments
• If evidence of export is not obtained within the specified period, then the supply must not be zero-rated. For full details on VAT time limits for exports and zero-rating see VAT on goods exported from the UK (VAT Notice 703)

Excise:

Goods must not be in excise duty suspense.