Guidance

Imports: home use with simultaneous entry for free circulation for Inward Processing

Updated 15 April 2024

If you are making a declaration using the Customs Declaration Service (CDS) follow the guidance in the UK Trade Tariff: volume 3 for CDS.

1. Customs procedure codes starting with 42

Home use with simultaneous entry for free circulation of goods subject to a zero rated onward supply.

1.1 42 00 000

Goods covered

Goods entered for free circulation without payment of any VAT for zero-rated onward supply to an EU member state.

Notice

Import VAT relief for goods supplied onward to a country in the EU (VAT Notice 702/7)

Specific fields in the declaration/notes on completion

-

Additional documents needed

-

Security needed

See VAT.

Additional information

In the additional information box at box 44 enter:

YO40 - the VAT identification number issued in the EU member state of importation for the importer designated or recognised under Article 201(1) of the VAT Directive as liable for payment of VAT. The number should begin with the ISO alpha-2 country code of the member state assigning the VAT number (for example, YO40GB123456789).
YO40 ^{[footnote 1]} should be used for an importer that is established and VAT registered in the UK, it cannot be used by a non VAT registered person.

YO41 - the VAT identification number of the customer who is liable for the VAT on the intra-EU acquisition of goods in accordance with Article 200(1) of the VAT Directive. The number should begin with the ISO alpha-2 country code of the EU member state assigning the VAT number (for example, YO41FR123457845).
YO41 ^{[footnote 1]} should be used for the customer in the EU member state where the goods are going to, it cannot be used by a non VAT registered person.

YO42 - the VAT identification number issued in the EU member state of importation for the tax representative. The number should begin with the ISO alpha-2 country code of the EU member state assigning the VAT number (for example, YO42GB987654321).
YO42 ^{[footnote 1]} should be used for a UK VAT registered/established agent appointed to act as an importer by a trader who is not established and VAT registered in the UK. The appointed agent/importer will be treated as importing and supplying the goods as the principal (see section 2.7 of VAT Notice 702: imports for the UK agent tax responsibilities), it cannot be used by a non VAT registered person.

If the VAT identification numbers of the taxable person (YO40 or YO42) importing the goods into the EU member state of import and/or of the customer in the EU member state (YO41) where the goods are going to form part of the C88 Box 8 or 14 Economic Operator Registration and Identification (EORI) numbers, then the corresponding ‘YO’ code in box 44 may be left blank.

VAT

Use of this CPC gives relief from import VAT.

Security for VAT is not needed for registered taxable persons. VAX must be entered in the rate column of Box 47 for the VAT tax line.

The CPC must not be used for VAT exempt persons.

The importer must be UK VAT registered, or a UK VAT registered agent appointed to act on behalf of an importer who is not based in the UK and not VAT registered in the UK.

You cannot claim Onward Supply Relief (OSR) if you use a pseudo Trader’s Unique Reference Number (TURN) or the code PR.

Supply of goods - to claim relief from import VAT you must be making a zero-rated supply of the imported goods, not merely despatching them, to a taxable person (who will account for tax on their acquisition) in an EU country.

Import VAT relief for goods supplied onward to a country in the EU (VAT Notice 702/7) contains full details of the requirements and criteria for claiming OSR that notice should be read in conjunction with this CPC.

Post clearance action

-

Notes

Entry under this CPC is a declaration by the importer/agent that the goods are imported by a registered taxable person in the course of a zero-rated supply of these goods by the importer to a taxable person in an EU member state and that the goods will be removed from the UK to an EU member state within one month of the date of importation.

Entry under this CPC is an undertaking by the importer to produce on demand by an officer of HMRC, commercial documentation as verification that the goods have been supplied to an EU member state and that the goods will be removed from the UK within one month of the date of importation.

Entry under this CPC is an undertaking by the importer/agent 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 relief are not met.

Customs Duty, CAP levies and other equivalent free circulation import charges must be paid or accounted for on the entry and the appropriate boxes must be completed.

At the time of importation, all prohibition and restriction controls in force at the time must be met.

1.2 42 51 000

Goods covered

Goods initially entered to IP declared to home use with simultaneous entry for free circulation of goods subject to a zero-rated onward supply.

Notice

Notice 3001: customs special procedures for the Union Customs Code

Import VAT relief for goods supplied onward to a country in the EU (VAT Notice 702/7)

Specific fields in the declaration/notes on completion

Box 1 - enter code IM followed by A or D as appropriate.

Box 44 - enter the appropriate licence details.

Additional documents needed

Documentary evidence of the amount of duty suspended, for example INF1 authenticated by supervising office.

Security needed

No security is needed for tariff quota relief unless a claim to preferential rates or tariff quota cannot be confirmed from the supporting documents (see the ‘Notes’ section).

Additional information

In the information box at box 44 enter:

YO40 - the VAT identification number issued in the EU member state of importation for the importer designated or recognised under Article 201(1) of the VAT Directive as liable for payment of VAT. The number should begin with the ISO alpha-2 country code of the EU member state assigning the VAT number (for example, YO40GB123456789).
YO40 ^{[footnote 1]} should be used for an importer that is established and VAT registered in the UK, it cannot be used by a non VAT registered person.

YO41 - the VAT identification number of the customer who is liable for the VAT on the intra-EU acquisition of goods in accordance with Article 200(1) of the VAT Directive. The number should begin with the ISO alpha-2 country code of the EU member state assigning the VAT number (for example, YO41FR123457845).
YO41 ^{[footnote 1]} should be used for the customer in the EU member state where the goods are going to, it cannot be used by a non VAT registered person.

YO42 - the VAT identification number issued in the EU member state of importation for the tax representative. The number should begin with the ISO alpha-2 country code of the EU member state assigning the VAT number (for example, YO42GB987654321).
YO42 ^{[footnote 1]} should be used for a UK VAT registered/established agent appointed to act as an importer by a trader who is not established and VAT registered in the UK. The appointed agent/importer will be treated as importing and supplying the goods as the principal (see section 2.7 of VAT Notice 702: imports for the UK agent tax responsibilities). It cannot be used by a non VAT registered person.

If the VAT identification numbers of the taxable person (YO40 or YO42) importing the goods into the EU member state of import and/or of the customer in the EU member state (YO41) where the goods are going to form part of the C88 Box 80 or 14 EORI numbers, then the corresponding ‘YO’ code in box 44 may be left blank.

VAT

Use of this CPC gives relief from import VAT.

Security for VAT is not needed for registered taxable persons. VAX must be entered in the rate column of Box 47 for the VAT tax line.

The CPC must not be used for VAT exempt persons.

The importer must be UK VAT registered, or a UK VAT registered agent appointed to act on behalf of an importer who is not based in the UK and not VAT registered in the UK.

You cannot claim OSR if you use a pseudo TURN or the code PR.

Supply of goods - to claim relief from import VAT you must be making a zero-rated supply of the imported goods, not merely despatching them, to a taxable person (who will account for tax on their acquisition) in an EU country.

Import VAT relief for goods supplied onward to a country in the EU (VAT Notice 702/7) contains full details of the requirements and criteria for claiming OSR, read the notice in conjunction with this CPC.

Post clearance action

-

Notes

Entry under this CPC is a declaration by the importer/agent that the goods are imported by a registered taxable person in the course of a zero-rated supply of these goods by the importer to a taxable person in an EU member state and that the goods will be removed from the UK to an EU member state within one month of the date of importation.

Entry under this CPC is an undertaking by the importer to produce on demand by an officer of HMRC, commercial documentation as verification that the goods have been supplied onward to an EU member state.

Entry under this CPC is an undertaking by the importer/agent to pay to the Commissioners of HMRC immediately demand any duties or other charges due in respect of the goods in question if the conditions of the relief are not met.

Customs Duty, CAP levies and other equivalent free circulation import charges must be paid or accounted for on the entry and the appropriate boxes must be completed.

At the time of importation, all prohibition and restriction controls in force at the time must be met. For goods subject to import licence requirements a licence must be presented with the diversion entry.

Importer in this context means the person putting the goods into free circulation.

The declaration must be in terms of the goods at the time of first entry to IP in the UK or EU and not in terms of the processed goods. If the goods were first entered to IP in an EU member state the necessary information will be given by the INF1.

1.3 42 53 000

Goods covered

Temporary Admission relief goods being released to free circulation and home use without payment of VAT for a zero-rated onward supply to an EU member state (see the ‘Notes’ section).

Notice

Notice 3001: customs special procedures for the Union Customs Code

Import VAT relief for goods supplied onward to a country in the EU (VAT Notice 702/7)

Specific fields in the declaration/notes on completion

Box 1 - in the first sub division enter code IM, in the second sub division enter A or D as appropriate.

Box 44 - enter the appropriate licence details.

Additional documents needed

-

Security needed

See VAT.

Additional information

In the additional information box at box 44:

• enter document code N990
• do not enter a document status code
• enter the TA authorisation number in the format TA nnnn/nnn/nn for goods under an authorisation involving more than one EU member state
• enter Temporary Admission Section, Customs House, Furness Quay, Salford MX50 3XN as a SPOFF Statement for goods under a simplified TA authorisation

YO40 - the VAT identification number issued in the EU member state of importation for the importer designated or recognised under Article 201(1) of the VAT Directive as liable for payment of VAT. The number should begin with the ISO alpha-2 country code of the EU member state assigning the VAT number (for example, YO40GB123456789).
YO40 ^{[footnote 1]} should be used for an importer that is established and VAT registered in the UK, it cannot be used by a non VAT registered person.

YO41 - the VAT identification number of the customer who is liable for the VAT on the intra-EU acquisition of goods in accordance with Article 200(1) of the VAT Directive. The number should begin with the ISO alpha-2 country code of the EU member state assigning the VAT number (for example, YO41FR123457845).
YO41 ^{[footnote 1]} should be used for the customer in the EU member state where the goods are going to, it cannot be used by a non VAT registered person.

YO42 - the VAT identification number issued in the EU member state of importation for the tax representative. The number should begin with the ISO alpha-2 country code of the EU member state assigning the VAT number (for example, YO42GB987654321).
YO42 ^{[footnote 1]} should be used for a UK VAT registered/established agent appointed to act as an importer by a trader who is not established and VAT registered in the UK. The appointed agent/importer will be treated as importing and supplying the goods as the principal (see section 2.7 of VAT Notice 702: imports for the UK agent tax responsibilities). It cannot be used by a non VAT registered person.

If the VAT identification numbers of the taxable person (YO40 or YO42) importing the goods into the EU member state of import and/or of the customer in the EU member state (YO41) where the goods are going to form part of the C88 Box 8 or 14 EORI numbers, then the corresponding ‘YO’ code in box 44 may be left blank.

VAT

Use of this CPC gives relief from import VAT.

Security for VAT is not needed for registered taxable persons. VAX must be entered in the rate column of Box 47 for the VAT tax line.

The CPC must not be used for VAT exempt persons.

The importer must be UK VAT registered, or a UK VAT registered agent appointed to act on behalf of an importer who is not based in the UK and not VAT registered in the UK.

You cannot claim OSR if you use a pseudo TURN or the code PR.

Supply of goods - to claim relief from import VAT you must be making a zero-rated supply of the imported goods, not merely despatching them, to a taxable person (who will account for tax on their acquisition) in an EU country.

Import VAT relief for goods supplied onward to a country in the EU (VAT Notice 702/7) contains full details of the requirements and criteria for claiming OSR that notice should be read in conjunction with this CPC.

Post clearance action

All enquiries should be addressed to the supervising office in box 44.

In cases where an undertaking is involved the necessary documents must be produced.

Notes

Entry under this CPC is a declaration by the importer/agent that the goods are imported by a registered taxable person in the course of a zero-rated supply of these goods by the importer to a taxable person in an EU member state and that the goods will be removed from the UK to an EU member state within one month of the date of importation.

Entry under this CPC is an undertaking by the importer to produce on demand by an officer of HMRC, commercial documentation as verification that the goods have been supplied onward to an EU member state.

Entry under this CPC is an undertaking by the importer/agent 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 relief are not met.

Customs Duty, CAP levies and other equivalent free circulation import charges must be paid or accounted for on the entry and the appropriate boxes must be completed. Compensatory Interest is due on duty for the period held under Temporary Import Relief except in cases justified in Notice 200: Temporary Admission (see notes to CPC 40 51 000 for the interest rate).

Any prohibitions and restrictions that apply at the time of release to free circulation must be met. For goods subject to import licence requirements a licence must be presented with the diversion entry.

‘Importer’ in this context means the person putting the goods into free circulation.

1.4 42 71 000

Goods covered

Goods initially entered to customs warehousing now being declared to free circulation of goods subject to a zero-rated onward supply to an EU member state.

Notice

Notice 3001: customs special procedures for the Union Customs Code

VAT Notice 702/7: import VAT relief for goods supplied onward to a country in the EU

Specific fields in the declaration/notes on completion

Box 1 - enter code IM followed by A.

Box 44 - enter the appropriate licence details document code C600, do not enter a document status code.

Box 49 - enter A,C,D, E, R or P for new UCC authorisation, followed by identification number of the customs warehouse and GB.

Additional documents needed

Where goods are removed on deposit (MP Code N) an additional copy of copies 3 and 4 of the Single Administrative Document (SAD) plus any continuation sheets must be attached.

Security needed

No security is needed for tariff quota relief unless a claim to preferential rates or tariff quota can not be confirmed from the supporting documents.

Removal can be against the appropriate security.

Additional information

In the additional information box at box 44 enter:

YO40 - the VAT identification number issued in the EU member state of importation for the importer designated or recognised under Article 201(1) of the VAT Directive as liable for payment of VAT. The number should begin with the ISO alpha-2 country code of the EU member state assigning the VAT number (for example, YO40GB123456789).
YO40 ^{[footnote 1]} should be used for an importer that is established and VAT registered in the UK, it cannot be used by a non VAT registered person.

YO41 - the VAT identification number of the customer who is liable for the VAT on the intra-EU acquisition of goods in accordance with Article 200(1) of the VAT Directive. The number should begin with the ISO alpha-2 country code of the EU member state assigning the VAT number (for example, YO41FR123457845).
YO41 ^{[footnote 1]} should be used for the customer in the EU member state where the goods are going to, it cannot be used by a non VAT registered person.

YO42 - the VAT identification number issued in the EU member state of importation for the tax representative. The number should begin with the ISO alpha-2 country code of the EU member state assigning the VAT number (for example, YO42GB987654321).
YO42 ^{[footnote 1]} should be used for a UK VAT registered/established agent appointed to act as an importer by a trader who is not established and VAT registered in the UK. The appointed agent/importer will be treated as importing and supplying the goods as the principal (see Notice 702, section 2.7 for the UK agent tax responsibilities). It cannot be used by a non VAT registered person.

If the VAT identification numbers of the taxable person (YO40 or YO42) importing the goods into the EU member state of import and/or of the customer in the EU member state (YO41) where the goods are going to form part of the C88 Box 8 or 14 EORI numbers, then the corresponding ‘YO’ code in box 44 may be left blank.

VAT

Use of this CPC gives relief from import VAT.

Security for VAT is not needed for registered taxable persons. VAX must be entered in the rate column of Box 47 for the VAT tax line.

The CPC must not be used for VAT exempt persons.

The importer must be UK VAT registered, or a UK VAT registered agent appointed to act on behalf of an importer who is not based in the UK and not VAT registered in the UK.

You cannot claim OSR if you use a pseudo TURN or the code PR.

Supply of goods - to claim relief from import VAT you must be making a zero-rated supply of the imported goods, not merely despatching them, to a taxable person (who will account for tax on their acquisition) in an EU country.

VAT Notice 702/7: import VAT relief for goods supplied onward to a country in the EU contains full details of the requirements and criteria for claiming OSR that notice should be read in conjunction with this CPC.

Post clearance action

Notes

Entry under this CPC is a declaration by the importer/agent that the goods are imported by a registered taxable person in the course of a zero-rated supply of these goods by the importer to a taxable person in an EU member state and that the goods will be removed from the UK to an EU member state within one month of the date of importation.

Entry under this CPC is an undertaking by the importer to produce on demand by an officer of HMRC, commercial documentation as verification that the goods have been supplied onward to an EU member state.

Entry under this CPC is an undertaking by the importer/agent 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 relief are not met.

2. Customs procedure codes starting with 46

2.1 46 00 000

Goods covered

Goods imported to free circulation in the UK or EU for which Outward Processing Relief (OPR) will be claimed.

The goods now being imported are supplied as authorised replacements under the standard exchange system, for goods which will be exported from the UK or EU under the conditions of a UK issued OPR authorisation or an authorisation involving the UK and an EU member state or more than one EU member state.

CAP goods may not be entered to this CPC.

Notice

Notice 3001: customs special procedures for the Union Customs Code

Specific fields in the declaration: notes on completion

Box 1 - enter code IM followed by A, D, Y or Z as appropriate.

The declared values or prices of the compensating goods now being imported must be the values or prices of the products on exportation.

If there is a guarantee or agreement which allows the free replacement of faulty goods supply a copy of that agreement.

The amount of Customs Duty payable must be calculated as described in Notice 3001: customs special procedures for the Union Customs Code.

Box 47 - enter DTY as the last 3 characters of the rate column and the duty payable in the amount column.

Additional documents needed

As the faulty goods have not yet been exported security is needed:

• evidence of the repair or replacement costs

Security

Security for potential charges must be given by deposit or guarantee.

When replacements are imported under the Standard Exchange System with prior importation, security for the potential Customs Duty on the full value is needed, by deposit or guarantee.

Security will be discharged when evidence is produced of the later export of the goods being replaced.

MP code ‘N’, ‘P’, ‘Q’, ‘S’, ‘T’, ‘U’, or ‘V’ (as appropriate) in Box 47.

Additional Information

An OPR authorisation or single community authorisation is needed.

Box 44 of the SAD must be completed by entering document code C019, do not enter a document status code (see the ‘Security’ section). Declare the full name and address of the supervising customs office as a SPOFF statement and enter document codes 9AID and/or 9AIV and status codes JP or UP as appropriate.

VAT

VAT is due on the full customs value of all new replacement goods.

Post clearance action

As delivery of the replacement goods is taken on deposit before export of the damaged or broken goods, when the evidence of the later export is available it must be submitted to the National Clearance Hub (NCH).

Notes

Subject to the conditions in Notice 3001: customs special procedures for the Union Customs Code section 8 being met, duty is chargeable on the repair costs.

Box 46 – statistical value must be completed in sterling.

3. Customs procedure codes starting with 48

3.1 48 00 000

Goods covered

Goods imported to free circulation in the EU for which OPR is claimed under the Standard Exchange System, being goods supplied as replacements for authorised faulty goods which have been exported from the UK or EU under a UK issued authorisation, involving more than one EU member state. The replacement goods being supplied free of charge either for contractual or legal reasons arising from a guarantee, or because of a manufacturing defect.

CAP goods may not be entered to this CPC.

If goods are being imported under the standard exchange system with prior importation use CPC 46 00 000.

Notice

Notice 3001: customs special procedures for the Union Customs Code

Specific fields in the declaration/notes on completion

Box 1 - enter code IM followed by A, D, Y or Z as appropriate.

Box 40 - enter previous document class ‘Z’, zzz and reference to the related export entry in the format EPU-number-date. If exported from an EU member state enter details of the relevant export entry/INF2.

The declared values or prices must be the values or prices of the compensating products on importation.

Additional documents needed

Reference to the previous CHIEF export entry number.

If this consignment is the second or later in a series of ‘split consignments’, the original INF2 issued at export, or when the first consignment was imported. See Notice 3001: customs special procedures for the Union Customs Code.

Documentary evidence that the replacement is being made free of charge.

Copy of warranty document or other evidence.

Form C&E1154 for VAT calculations.

Security

Where delivery is needed before production of the certificate of posting or details of the previous export entry have not been entered in Box 40, security for potential charges on the full value must be given by deposit or guarantee.

Enter MP code ‘N’, ‘P’, ‘Q’, ‘R’, ‘S’, ‘T’, ‘U’, or ‘V’ (as appropriate) in Box 47.

Additional Information

An OPR authorisation or single community authorisation is needed.

In box 44:

• enter document code C019
• do not enter a document status code
• enter the OPR authorisation reference number, if the exported goods have been sold whilst outside the EU to the importer enter OP 9999/999/99 (see the ‘Notes’ section)

Where no details have been entered in Box 40 security will be needed until the evidence of export under OPR is given (see the ‘Security’ section).

Declare the full name and address of the supervising customs office as a SPOFF statement.

Enter document codes 9AID and/or 9AIV and status codes JP or UP as appropriate.

VAT

VAT is due on the full value of all replacement goods even if supplied free of charge. Details will be included on the VAT certificate for registered taxable person.

Post clearance action

If delivery is taken on deposit before production of documents, they must be submitted - when available - to the office where the entry was originally presented.

Notes

Replacement goods supplied in return for payment must be entered to CPC 48 00 001.

3.2 48 00 001

Goods covered

Goods imported to free circulation in the EU for which OPR is claimed being:

• goods supplied in return for payment, as authorised replacements under the standard exchange system, for goods which have been exported

CAP goods may not be entered to this CPC.

If goods are being imported under the standard exchange system with prior importation use CPC 46 00 000.

Notice

Notice 3001: customs special procedures for the Union Customs Code

Specific fields in the declaration: notes on completion

Box 1 - enter code IM followed by A, D, Y or Z as appropriate.

Box 40 - enter previous document class ‘Z’, zzz and reference to the related Export Entry in the format EPU-number-date. If exported from an EU member state enter details of the relevant export entry/INF2.

The declared values or prices must be the values or prices of the compensating products on importation.

The amount of Customs Duty payable must be calculated as described in Notice 3001: customs special procedures for the Union Customs Code.

Enter DTY as the last 3 characters of the rate column and the duty payable in the Amount column of Box 47.

Additional documents needed

Reference to the previous CHIEF export entry number.

If this consignment is the second or later in a series of ‘split consignments’, the original INF2 issued at export, or when the first consignment was imported (see Notice 3001: customs special procedures for the Union Customs Code).

Form C&E1154 if VAT is payable.

Documentary evidence of the identity and value of the temporary exported goods.

If relief from VAT is claimed, a declaration that ownership has not changed since exportation on form C&E1154.

Evidence of the repair or replacement costs.

Security

Where delivery is needed before production of the certificate of posting or details of the previous export entry have not been entered in Box 40, security for potential charges must be given by deposit or guarantee.

MP code ‘N’, ‘P’, ‘Q’, ‘S’, ‘T’, ‘U’, or ‘V’ (as appropriate) in Box 47.

Additional Information

An OPR authorisation or authorisation involving more than one EU member state is needed.

Box 44 of the SAD must be completed:

• enter document code C019
• do not enter a document status code
• enter the OPR authorisation reference number, if the exported goods have been sold whilst outside the UK and EU to the importer enter OP 9999/999/99 (see the ‘Notes’ section)

However, where no details have been entered in Box 40 security will be needed until the evidence of export under OPR is given (see the ‘Security’ section).

Declare the full name and address of the supervising customs office as a SPOFF statement.

Enter document codes 9AID and/or 9AIV and status codes JP or UP as appropriate.

VAT

VAT is due on the full customs value of all replacement goods.

Post clearance action

If delivery is taken on deposit before production of documents, they must be submitted - when available - to the office where the entry was originally presented.

Notes

Goods exported under the OPR simplified repair procedure using export CPC 21 00 004 must be entered to CPC 61 21 001.

Subject to the conditions in Notice 3001: customs special procedures for the Union Customs Code section 8 being met, duty is chargeable on the repair costs.

Box 46 – statistical value must be completed in sterling.

1. Possible combination on a customs import entry are YO41 with YO40, or YO41 with YO42: it is not possible for YO40 and YO42 to be used on the same entry. ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷ ↩⁸ ↩⁹ ↩¹⁰ ↩¹¹ ↩¹²