SPE13330 - Equivalence: commercial quality and technical characteristics

Note: This manual is under review following Brexit and is likely to be withdrawn.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.

Goods may fall under the same 8 digit CN code but technical characteristics and commercial quality of those goods can vary considerably. These terms are not defined within the legislation but samples, illustrations, technical descriptions or analysis of goods may be useful to enable a comparison to be made between the goods to be entered to IP and the free circulation equivalent goods.

It is not possible to give guidance that will cover all cases but generally an indication that goods are not equivalent will be apparent if:

  • any differentiation between goods is made by the applicant because of their non UK customer requirements
  • goods cannot be used for the same purpose, or
  • goods are not directly interchangeable.

Supervising offices should ensure that equivalence is not used simply to export cheaper, inferior goods to a non-UK market in order to bring in more expensive, better quality goods for sale on the UK market or vice versa. Special attention should also be made to applications that involve clothing or fashion items as fashion trends will impact upon the marketability of the goods. For example exporting last year’s fashion items to allow the import of items currently in fashion or importing and exporting different colours or styles of clothing, would not meet the commercial quality criteria.

If there are any doubts that goods are equivalence consult the Unit of Expertise (UoE) in Nottingham.

(NI ONLY) Commission Delegated Regulation (EU) 2015/2446, Article 169 (6)(c); Commission Implementing Regulation (EU) 2015/2447, Para (53)

https://www.gov.uk/guidance/using-similar-goods-to-replace-customs-speci…

The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018

Taxation (Cross-border Trade) Act 2018

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