Inward Processing Relief (IPR)
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All of the information shown below has been taken from the Public Notice: 221 Inward Processing Relief (Jan 2003). ukimports.org
Please note: Goods being brought into the UK on a temporary basis, for a process, can usually claim relief from import duties and VAT. However, conditions DO apply, so please ensure that you read through this section thoroughly and email us, should you have any questions.
Any person who makes a false declaration or provides untrue information about goods entered to IPR may be liable to penalties under the Customs and Excise Management Act 1979. ukimports
Duty is relieved on imports of non EC goods which are processed in the Community and re-exported provided the trade does not harm the essential interests of Community producers of similar goods. It can provide relief from customs duty, specific customs duty (previously CAP charges), anti-dumping duty, countervailing duty but does not relieve excise duties.
Import VAT is not due when entered to IPR suspension but is due if entered to IPR drawback.
Processing can be anything from repacking or sorting goods to the most complicated manufacturing.
You may also obtain relief if you receive IPR goods from another approved trader in the UK or another Member State. If you dispose of the finished goods other than by re-export, you may still be able to claim relief. ukimports
- individuals, partnerships or corporate bodies established outside the European Community provided imports are of a non commercial nature. ukimports
will also be required to submit returns detailing your receipts and disposals.
There are five types of authorisation:
- Simplified (UK only)
- Local (UK only)
- Single Community
Processing of certain goods are subject to a monetary limit, and could possibly require an economic test carried out by DEFRA. See the full Public Notice 221 on our Forms page for full details. ukimports
If you plan to export or transfer only a percentage, suspension can be used for that percentage of your imports/receipts, based on a reasonable estimate. The remainder should be entered to free circulation with full payment of duty and import VAT (unless another duty or VAT relief is available).
If you import/receive more goods under IPR suspension than you need for your export market or other eligible disposals, you will have to divert the surplus goods to free circulation. You will have to pay the suspended duty and import VAT and will also be charged compensatory interest from the date the goods were imported to the EC.
The goods listed in paragraph 27.2 of Public Notice 221, must be entered to suspension. These include agricultural goods, some licensable goods (mostly textiles) and any goods you intend to process under IPR in a Customs warehouse or Free Zone. The conditions for using suspension are also listed under section 28 of the Public Notice 221. ukimports
Except for goods listed in paragraph 27.2 of Public Notice 221, which cannot be entered to drawback, this method may suit you if you do not know how much of the goods you receive will be exported etc and you will not be charged compensatory interest on any goods you release for use on the Community market. The conditions and restrictions for using drawback are listed at section 27 of the Public Notice.
If you need help to decide which method is best for your business, contact the UK Customs National Advice Service (see our Useful Links page for contact details). ukimports
- 6 months in the case of agricultural products (see paragraph 26.1 of Public Notice 221);
- 3 months for dairy products referred to in Article 1(1) of Council Regulation (EC) No 1255/99 (see section 33 of the Public Notice).
Except for these goods longer periods may in certain circumstances be approved where there are duly justified good reasons, for example a fixed term contract or commercial agreement. You should contact your supervising office for specific details. ukimports
Note: This information contained on this page is only a brief section of the information that can be found on the 122 page Public Notice 221. Please ensure that you read the full document and discuss the criteria with your preferred clearing agent to ensure that your goods are eligible for relief.