SPE13320 - Equivalence: general

Note: This manual is under review following Brexit and is likely to be withdrawn. If there is anything within this manual you use regularly, please email hmrcmanualsteam@hmrc.gov.uk to let us know. Please check the other guidance available on GOV.UK from HMRC.

If use of equivalence has been applied for the details in the application must be sufficient for a comparison to be made between free circulation materials used and those materials that will be entered to IP.

Regardless of the form of equivalence used the same basic criteria for determining if free circulation goods are equivalent to IP goods apply.

(NI ONLY) Under UCC, common stocking and prior export and prior import equivalence can be used, see Council Regulation (EU) 952/2013, Article 223.

When an IP authorisation is issued it is granted for specific goods to be entered for a specified processing operation. If equivalence is approved, equivalent free circulation goods will be used in place of the goods authorised to be entered to IP. They must be subject to the same processing authorised under IP, by the authorisation holder.

(NI ONLY) Commission Delegated Regulation (EU) 2015/2446, Article 169; TAXUD/A2/SPE/2016/001-Rev6-EN, Annex IV, Inward Processing, Use of equivalent goods under the Union Customs Code

IP Authorisations by declaration

Use of equivalence under IP authorisations by declaration is excluded in the UK. These authorisations are permitted to be applied for and approved on the basis of minimum information provided on the customs import declaration entry but the level of information provided on the customs import declaration is not sufficient for equivalence purposes.

Usual Forms of Handling (UFH)

Use of equivalence where processing is a usual forms of handling must be refused regardless of the type of IP authorisation to be used. In such cases traders should consider using customs warehouse arrangements. This has the benefit of providing relief on goods that are subsequently (re)-exported outside the UK.

(NI ONLY) Council Regulation (EU) 952/2013, Article 200 and Article 223 (3)(a)

Note - Northern Ireland (NI) Customs Authorisations will continue to fall within the provisions of the Union Customs Code (UCC), as retained by the European Union (Withdrawal) Act 2018 and CEMA 1979