Guidance

Request an economic test for an inward or outward processing authorisation

Check if an inward or outward processing authorisation requires an economic test to test the impact the authorisation holder's goods have on UK producers.

• From: HM Revenue & Customs
• Published: 20 August 2020
• Last updated: 31 December 2020 — See all updates

If goods are entered under an inward or outward processing authorisation, they may need an economic test to check that the authorisation does not effect other UK businesses negatively.

When an economic test can be requested

Depending on the goods being imported, and the actions that the inward or outward processing authorisation holder takes, a test maybe needed in the following cases. For each case, all conditions must be met.

Inward processing

Case 1

When:

• the authorisation holder decides to pay duty on the basis of the goods being released to free circulation rather than the duty due when the goods were first declared

• evidence exists that UK producers will be disadvantaged

• the action the authorisation holder will take with their goods does not appear in the economic codes table

Case 2

When:

• the authorisation holder decides to pay duty on the basis of the goods that were first declared to inward processing

• the goods placed under inward processing are subject to an agricultural policy measure, Anti-Dumping Duty (ADD), countervailing duty or safeguard duty if they were declared to free circulation

• the action the authorisation holder will take with their goods does not appear in the economic codes table

Case 3

When:

• the authorisation holder decides to pay duty on the basis of the goods that were first declared to inward processing

• goods placed under inward processing are subject to an agricultural policy measure, anti-dumping duty, countervailing duty or safeguard duty if they were declared to free circulation

• evidence exists that UK producers will be disadvantaged

• the action the authorisation holder will take with their goods does not appear in the economic codes table

Outward processing

Case 4

When:

• evidence exists that UK producers will be disadvantaged

• the goods are not intended for repair

• the goods are listed as sensitive

How to request an economic test

If you think your business has been disadvantaged by an inward or outward processing authorisation issued to another person, you can request an examination of the economic conditions under cases (1), (2) or (4) listed above.

You must write to HMRC at:

Customs Liverpool

Group 3, Floor 6

Graeme House

Derby Square

Liverpool

L2 7XS

You must include full details of the impact on your business and give as much evidence as you can to support your case.

After the economic test is complete

If the inward or outward processing application passes the test, the authorisation will be granted.

If it fails, then the application will be rejected, and the applicant will not be able to use inward or outward processing.

Authorisation will be withdrawn if it has already been granted but later fails a required economic test.

Published 20 August 2020
Last updated 31 December 2020 + show all updates

1. 31 December 2020

   This page has been updated because the Brexit transition period has ended.

2. 20 August 2020

   First published.