SPE14040 - Specific rules relating to Outward Processing: processed products or replacements not liable to customs import duty

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OP is of no benefit if compensating products or replacements are not liable to customs import duties so an OP authorisation is not required for these goods.

There is, however, a Customs Procedure Code (CPC) outside of the OP series that will allow for the relief of import VAT only – this is CPC 40 00 065 but is not a Special Procedure CPC.

If compensating products are eligible for a ‘nil’ duty rate only if declared under preference arrangements, or under a quota, traders may still use OP to export the goods since (in rare circumstances) preference may no longer be available when they are re-imported, or a quota for the compensating products may no longer be open. In such circumstances, if the goods have not been exported under OP no relief can normally be allowed (unless a retrospective authorisation can be obtained). Export under OP arrangements, however, in no way obliges the importer to enter the compensating products to OP at import. If the importer can obtain a greater benefit by entering the goods to preference or some other arrangement, they may do so.

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