SPE13460 - Production accessories: repeated use of catalysts

Note: This manual is under review following Brexit and is likely to be withdrawn.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

There is no limit on the number times a catalyst can be used provided that the processed products resulting from those operations are exported from the UK. Any extension of periods for discharge for catalysts may only be approved if they are to be used in further processing of goods for export from the UK.

If catalysts used on processed products that were re-exported can be re-used and are subsequently released to free circulation, the ‘economic’ value of the catalyst should be taken into account. The economic value can be determined by dividing:

• the value of catalyst used on processed product(s) that were re-exported, and
• the number of times or length of time, the catalyst can be re-used for the same purpose.

This ‘value’ should be deducted from the original value of the catalyst that was entered to IP.

For example: if a catalyst entered to IP can be used for 10 years:

Catalyst imported	Relief on catalyst
Value £10,000	The economic value of the catalyst would be 10 years / £10,000 = £1,000 per year
Re-useable for 10 years	The proportional value of the catalyst used to produce the processed products would be £1,000
10 processed products produced during the first year and subsequently re-exported. The catalyst is then released to free circulation	The remaining proportional value of the catalyst released to free circulation would be £10,000 - £1000 = £9000

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