Get an economic code to apply for inward processing
Find the correct economic code to explain what you'll do with your goods under an inward processing authorisation.
When applying for inward processing, you will need to insert one or more of the following codes to tell HMRC what you are going to do with the goods.
Check what economic code you need to use
Use the following information to help you choose the correct economic code according to the actions that you’ll take with your goods.
Economic code 1
Use economic code 1 where you are processing goods that are not sensitive.
You can check if your goods are sensitive when declaring to inward or outward processing.
Economic code 2
Use economic code 2 where you are importing goods for repair.
Economic code 3
Use economic code 3 where you are processing goods to the specifications of a person established outside the UK.
This will normally be against the payment of processing costs only.
Economic code 4
Use economic code 4 where you are processing durum wheat into pasta.
Economic code 5
Use economic code 5 where you are placing goods under inward processing within the limits of the quantity determined by the EU Commission.
Economic code 6
Use economic code 6 where you are processing sensitive goods because UK goods that have the same 8-digit combined nomenclature code, the same commercial quality and technical characteristics are not available.
You can check if your goods are sensitive when declaring to inward or outward processing.
Economic code 7
Use economic code 7 where you are processing sensitive goods when both of the following apply:
- there are differences in price between goods produced in the UK and those intended to be imported
- comparable goods cannot be used because their price would not make the proposed commercial operation economically viable
Economic code 8
Use economic code 8 where you are processing sensitive goods when:
- there are contractual obligations, where UK goods do not conform to the contractual requirements
- in accordance with the contract, the processed products must be from non-UK goods to comply with the protection of industrial or commercial property rights
Economic code 9
Use economic code 9 where you are processing sensitive goods when the total value of the goods being placed under inward processing per applicant and per calendar year for each 8-digit combined nomenclature code is no more than £135,000.
Economic code 10
Use economic code 10 where you are processing goods to ensure their compliance with technical requirements for their release into free circulation in the UK.
Economic code 11
Use economic code 11 where you are processing goods of a non-commercial nature or personal gifts.
Economic code 12
Use economic code 12 where you are processing goods obtained by you from a previous inward processing authorisation, where there was an examination of the:
- economic conditions of that authorisation
- the available evidence for the purposes of regulation
Economic code 13
Use economic code 13 where you are processing the following goods into products which are not for the food sector:
- solid and fluid fractions of palm oil
- coconut oil
- fluid fractions of coconut oil
- palm kernel oil
- fluid fractions of palm kernel oil
- babassu oil
- castor oil
Economic code 14
Use economic code 14 where you are processing goods into products to be incorporated in or used for civil aircraft where an airworthiness certificate has been issued.
Economic code 15
Use economic code 15 where you are processing goods into products benefitting from relief under section 19 of the Taxation (Cross-border Trade) Act for weapons and military equipment.
Economic code 16
Use economic code 16 where you are processing goods into samples.
Economic code 17
Use economic code 17 where you are processing any electronic type of component, part, assembly or any other materials into information technology products.
Economic code 18
Use economic code 18 where you are processing goods that fall within tariff heading 2707 or 2710 into products falling within codes 2707, 2710 or 2902.
Economic code 19
Use economic code 19 where you are:
- reducing goods to waste and scrap
- destroying goods
- recovering parts or components
Economic code 20
Use economic code 20 where you are denaturing goods.
Economic code 21
Use economic code 21 where you are carrying out the usual forms of handling on goods.
Economic code 22
Use economic code 22 where total value of goods to be placed under inward processing per applicant and per calendar year does not exceed:
- £135,000 for sensitive goods
- £270,000 for other goods
Where the goods were declared for free-circulation procedure, then either the:
- goods would be subject to an agricultural policy measure or an additional amount of import duty
- importer of the goods would required to give a guarantee
Do not use this code where the goods you intend to place under inward processing procedure would be subject to:
- provisional or definitive anti-dumping duty
- countervailing duty
- a safeguard measure or an additional duty resulting from a suspension of concessions if the goods were declared for free circulation
If you cannot find your economic code
If the action you will take with your goods cannot be found in the table, they may require an economic test if you want to use inward processing.
Read more information about economic tests and you may need one.
When you must use economic code 15
You must apply for inward processing under economic code 15, if any of the goods you’re intending to import under inward processing are to be made into certain weapons and military equipment for goods falling under any of the following 4-digit commodity codes.
Commodity codes
2804; 2825;
3601; 3602; 3603; 3604; 3606; 3701; 3702; 3703; 3705; 3707; 3824; 3926;
4202; 4901; 4911;
5608;
6116; 6210; 6211; 6217; 6305; 6307; 6506;
7308; 7311; 7314; 7326; 7610;
8413; 8414; 8415; 8418; 8419; 8421; 8424; 8426; 8427; 8428; 8429; 8430; 8470; 8471; 8472; 8479; 8502; 8516; 8517; 8518; 8521; 8524; 8525; 8526; 8527; 8528; 8531; 8535; 8536; 8539; 8543; 8544; 8701; 8703; 8704; 8705; 8709; 8710; 8711; 8716; 8801; 8802; 8804; 8805; 8901; 8903; 8906; 8907;
9004; 9005; 9006; 9008; 9013; 9014; 9015; 9018; 9019; 9020; 9021; 9022; 9025; 9026; 9027; 9030; 9031; 9301; 9302; 9303; 9304; 9306; 9307; 9404; 9406;
Updates to this page
Last updated 1 August 2024 + show all updates
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Updated paragraph under economic code 15 to include description on what applies when inward processing under this code.
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The guidance has been updated due to UK transition, with amounts changed to pounds.
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First published.