Special Procedures HMRC Notices

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

The following text has the force of law, by virtue of Regulation 8(4) of The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018

An authorisation to declare goods for a special customs procedure or an outward processing procedure, which is treated as granted under regulation 8(2) of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 is subject to the following requirements and conditions (as relevant to each procedure).

Unless otherwise specified, references in the text below to the indications used on a declaration will be the same whether the declarations are submitted to CHIEF or Customs Declaration Service (CDS) systems.

Inward processing

(a) The authorisation only authorises an inward processing procedure for those goods specified in the declaration.

(b) The approved person shall ensure that the authorisation number IP/9999/999/99 is quoted on:

any subsequent customs declaration discharging the inward processing procedure (other than a declaration made by means of an ATA or CPD carnet), or
any export declaration made for the goods while they are subject to an inward processing procedure.

(c) The approved quantity of other goods resulting from the processing will be 1:1 or will be established from the processing records as indicated on the declaration of the goods for an inward processing procedure (ROY 01 or ROY 02).

(d) The inward processing procedure must be discharged within six months of the date on which goods are released to that procedure, or any longer period approved by HMRC. The processing to which the goods are subject will be that indicated on the declaration of the goods for the procedure (PRO 1, 2, 3, 4, 5, 6 or 7 for CHIEF declarations or PRO 01, 02, 03, 04, 05, 06, 07, 08, 09, 10, 11, 12 or 13 for CDS declarations).

(e) Goods resulting from the processing must be those indicated on the declaration of the goods for an inward processing procedure (MCP01 or MCP02 plus the classification code of the goods to be produced).

(f) Authorisation is granted under the economic code indicated on the declaration of the goods for an inward processing procedure (ECO 2, 3, 4, 9, 10, 11, 13, 14, 15, 16, 17, 18, 19, 20, 21 or 22).

(g) A completed Bill of Discharge (BOD) (form BOD3 v1.0 available at https://www.gov.United Kingdom/government/publications/import-and-export-inward-processing-bill-of-discharge-bod3 must be submitted to HMRC within 30 days of the expiry of the period for discharge referred to at (d) above.

Temporary admission

(a) The approved person must ensure that the authorisation number TA/9999/999/99 is quoted on any subsequent customs declaration discharging the temporary admission procedure, or on any export declaration for the goods while they are subject to a temporary admission procedure. However this requirement applies only where the relevant customs or export declaration is made in electronic form or in writing (other than by means of an ATA or CPD carnet).

(b) Authorisation is granted in respect of the goods and the use indicated on the declaration of the goods for a temporary admission procedure.

(c) Other than where (d) applies, the period for which goods declared for a temporary admission procedure are to be used before being exported in accordance with the applicable export provisions or removed from Great Britain to Northern Ireland is 24 months, or any longer period approved by HMRC.

(d) The tables below set out cases in which the maximum period for which the goods are to be used before being exported or removed from Great Britain to Northern Ireland differs from that mentioned in paragraph (c).

Unless otherwise stated, the period specified in these tables commences at the time that the goods are declared to the procedure.

Means of transport and containers (sections 6 and 3 of the document “Temporary Admission: Eligible Goods and Conditions for Relief”) 

Goods	Maximum period
Means of rail transport	12 months
Commercially used means of transport (other than rail transport)	The period required for carrying out transport operations, providing this does not exceed 24 months or any longer period approved by HMRC
Means of road transport used privately by students	The period the student stays in the United Kingdom for the sole purpose of pursuing their studies
Means of road transport used privately by persons fulfilling assignments of a specified duration	The period the person stays in the United Kingdom for the sole purpose of fulfilling their assignment
Means of road transport used privately in cases other than those mentioned in the 2 rows above (including saddle and draught animals and the vehicles drawn by them)	6 months
Privately used means of air transport	6 months
Privately used means of sea and inland waterways transport	18 months
Containers, their equipment and accessories	12 months

Professional hire services (sections 7 and 8 of the document “Temporary Admission: Eligible Goods and Conditions for Relief”) 

Goods	Maximum period
A means of transport temporarily imported and returned to a professional hire service established in the United Kingdom or Isle of Man	Other than where the means of transport is re-hired as described below: 6 months from the date of entry of the means of transport For this purpose the date of entry is the date of the conclusion of the hiring agreement under which the means of transport was used at the time of entry, unless the actual date of entry has been proven.
A means of transport, as described above, that is rehired by the professional hire service to a person established outside the United Kingdom or the Isle of Man, or to a natural person resident in the United Kingdom or the Isle of Man	The earlier date of: · 6 months from the date of entry of the means of transport; or · The end of 3 weeks after the conclusion of the contract on the rehiring. For this purpose the date of entry is the date of the conclusion of the hiring agreement under which the means of transport was used at the time of entry, unless the actual date of entry has been proven.
Means of road transport that are: · hired by an individual who is habitually resident in the United Kingdom or Isle of Man under a written contract concluded with a professional car hire service; and · used privately by that individual	3 weeks

Other goods 

Goods	Maximum period
Goods used to carry out tests, experiments or demonstrations without financial gain (section 22 of the document “Temporary Admission: Eligible Goods and Conditions for Relief”)	6 months
Replacement means of production (section 24 of the document “Temporary Admission: Eligible Goods and Conditions for Relief”)	6 months
Goods delivered by the owner for inspection to a person in the United Kingdom or Isle of Man who has the right to purchase them after inspection (section 25 of the document “Temporary Admission: Eligible Goods and Conditions for Relief”)	6 months
Animals owned by a person established outside the United Kingdom and Isle of Man (section 14 of the document “Temporary Admission: Eligible Goods and Conditions for Relief”)	24 months (and this maximum period must also not be less than 12 months)
Other goods imported occasionally (section 26 of the document “Temporary Admission: Eligible Goods and Conditions for Relief”)	3 months
Goods moved or used under NATO form 302 (section 29 of the document “Temporary Admission: Eligible Goods and Conditions for Relief”)	24 months, unless international agreements establish a longer time limit

Outward processing

(a) The authorisation applies only in respect of the goods specified in the declaration of goods for an outward processing procedure.

(b) The approved person must comply with any obligations concerning the discharge of goods from the Customs formalities for exporting goods subject to the outward processing procedure, which apply under regulation 13A of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018.

Authorised use 

(a) The maximum period goods can usually remain under an authorised use procedures is 24 months. If a longer period is required, an application for such an extension must be made to HMRC.

(b) The approved quantity of other goods resulting from the specified authorised use of the goods (where appropriate) will be 1:1 or will be established from the processing records as indicated on the declaration of the goods for an authorised use procedure (ROY 01 or ROY 02).

(c) The place where the goods are to be used will be that specified in the declaration of the goods for an authorised use procedure.

(d) Where appropriate, any processing to be undertaken, and the classification code of any other goods to be produced, will be those indicated on the declaration of the goods for an authorised use procedure.

(e) The goods must be used for the specified authorised use indicated on the declaration of the goods for an authorised use procedure.

(f) Where the goods are suitable for repeated use, the approved person is subject to such requirements and control in respect of the goods subject to an authorised use procedure as may be specified by HMRC. These requirements may not apply for a period longer than two years from the date that the goods have been first put to a specified authorised use.

(g) A completed Bill of Discharge (BOD) (form BOD4 v.1.0 https://www.gov.uk/government/publications/import-and-export-end-use-bill-of-discharge-bod4 must be submitted to HMRC on within 30 days of the authorised use procedure being discharged.

The following text has force of law by virtue of Regulation 9(2)(b) of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018

Authorisation to declare goods for an inward processing or an authorised use procedure can be granted to a person who is not established in the United Kingdom where the goods are not part of a series of goods imported by the applicant and:

the goods are non-commercial goods or personal gifts; or
in the opinion of an HMRC officer, the declaration of the goods for the procedure is incidental to any business carried on by the declarant; or
in the opinion of an HMRC officer, the declaration of the goods for the procedure will have no economic effect in the United Kingdom

The following text has force of law, by virtue of Regulations 15(2)(a)(ii), 17(3)(a)(ii), 18(1)(c)(ii) and 45(2)(c)(ii) of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 

The following are operations constituting a usual form of handling.

Unless specified below, an operation may not constitute a usual form of handling if it gives rise to a different classification code for the goods. 

Notwithstanding the above, an operation may also not constitute a usual form of handling if it gives rise to:

a different classification code for the goods; or

a change in the origin of the goods
in cases where, if a declaration of those goods for the free-circulation procedure were accepted at the time the operation began:

the goods would be subject to an additional amount of duty under section 13, 14 or 15 of the Taxation (Cross-border Trade) Act 2018; or

a guarantee would be required under paragraph 15(5) of Schedule 4 to the Taxation (Cross-border Trade) Act 2018

Usual forms of Handling

(1) Ventilation, spreading-out, drying, removal of dust, simple cleaning operations, repair of packing, elementary repairs of damage incurred during transport or storage in so far as it concerns simple operations, application and removal of protective coating for transport.

(2) Reconstruction of the goods after transport.

(3) Stocktaking, sampling, sorting, sifting, mechanical filtering and weighing of the goods.

(4) Removal of damaged or contaminated components.

(5) Conservation, by means of pasteurisation, sterilisation, irradiation or the addition of preservatives.

(6) Treatment against parasites.

(7) Anti-rust treatment.

(8) Treatment:

by simple raising of the temperature, without further treatment or distillation process, or
by simple lowering of the temperature even if this results in a different classification code.

(9) Electrostatic treatment, uncreasing or ironing of textiles.

(10) Treatment consisting in:

stemming and/or pitting of fruits, cutting up and breaking down of dried fruits or vegetables, rehydration of fruits; or
dehydration of fruits even if this results in a different classification code

(11) Desalination, cleaning and butting of hides.

(12) Addition of goods or addition or replacement of accessory components as long as this addition or replacement is relatively limited or is intended to ensure compliance with technical standards and does not change the nature or improve the performances of the original goods, even if this results in a different classification code for the added or replacement goods.

(13) Dilution or concentration of fluids, without further treatment or distillation process, even if this results in a different classification code.

(14) Mixing between them of the same kind of goods, with a different quality, in order to obtain a constant quality or a quality which is requested by the customer, without changing the nature of the goods.

(15) Mixing of gas or fuel oils not containing biodiesel with gas or fuel oils containing biodiesel, classified in Chapter 27 of the UK customs tariff, in order to obtain a constant quality or a quality which is requested by the customer, without changing the nature of the goods, even if this results in a different classification code.

(16) Mixing of gas or fuel oils with biodiesel so that the mixture obtained contains less than 0.5%, by volume, of biodiesel, and mixing of biodiesel with gas or fuel oils so that the mixture obtained contains less than 0.5 %, by volume, of gas or fuel oils.

(17) Dividing or size cutting, out of goods if only simple operations are involved.

(18) Packing, unpacking, change of packing, decanting and simple transfer into containers, even if this results in a different classification code.

(19) Affixing, removal and altering of marks, seals, labels, price tags or other similar distinguishing signs.

(20) Testing, adjusting, regulating and putting into working order of machines, apparatus and vehicles, in particular in order to control the compliance with technical standards, if only simple operations are involved.

(21) Dulling of pipe fittings to prepare the goods for certain markets.

(22) Denaturing, even if this results in a different classification code.

(23) Any other operation intended to improve the appearance or marketable quality of the goods or to prepare them for distribution or resale – provided these operations do not change the nature or improve the performance of the original goods.

The following text has force of law, by virtue of Regulations 20(1) and 20(2)(b) of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018

The cases of a description specified for the purposes of Regulation 20(1) of The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 are:

(a) Where the liability to import duty is determined in accordance with regulation 23 of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 and both of the following conditions apply:

HMRC is aware of evidence that the essential interests of producers of goods in the United Kingdom would be adversely affected by an authorisation to declare the goods for an inward processing procedure.
The operation to be carried out is not of a type at paragraph (2)(a) to (e) below.

(b) Where the liability to import duty is not determined in accordance with regulation 23 of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 and both of the following conditions apply:

If the goods to be declared for an inward processing procedure were declared for the free-circulation procedure the goods would be subject to a non-tariff trade policy measure or an agricultural policy measure, or
The operation to be carried out is not of a type at paragraph (2)(g), (h),(l) or (o) below.

(c) Where liability to import duty is not determined in accordance with regulation 23 of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 and all of the following conditions apply:

If the goods to be declared for an inward processing procedure were declared for the free-circulation procedure:

the goods would not be subject to a non-tariff trade policy measure, an agricultural policy measure or an additional amount of import duty under section 13, 14 or 15 of the Taxation (Cross-border Trade) Act 2018, or
the importer of the goods would not be required to give a guarantee under paragraph 15(5) of Schedule 4 to that Act.

HMRC is aware of evidence that the essential interests of producers of goods in the United Kingdom would be adversely affected by an authorisation to declare the goods for an inward processing procedure.
The operation to be carried out is not of a type at paragraph (2)(f) to (r) below.

The operations specified for the purposes of Regulation 20(2)(b) of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 are:
The processing of goods that are not sensitive goods (as defined in the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018).
The processing of goods directly or indirectly put at the disposal of the applicant to declare goods for an inward processing procedure, carried out according to specifications on behalf of a person established outside the United Kingdom, generally against payment of processing costs alone.
The processing of durum wheat into pasta.
The processing of sensitive goods (as defined in the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018) in any of the following situations:
- unavailability of goods produced in the United Kingdom sharing the same classification code, the same commercial quality and technical characteristics as the goods intended to be imported for the processing operations envisaged;
- differences in price between goods produced in the United Kingdom and those intended to be imported, where comparable goods cannot be used because their price would not make the proposed commercial operation economically viable;
- contractual obligations where comparable goods do not conform to the contractual requirements of the non-United Kingdom purchaser of the processed products, or where, in accordance with the contract, the processed products must be obtained from the goods intended to be declared for an inward processing procedure, in order to comply with provisions concerning the protection of industrial or commercial property rights;
- the aggregate value of goods to be declared for an inward processing procedure in that calendar year by the applicant does not exceed £135,000 for each classification code.
The processing of goods to ensure their compliance with technical requirements for their release for a free-circulation procedure in the United Kingdom.
The processing of non-commercial goods or personal gifts.
The processing of goods resulting from processing under a previous authorisation, the application for which was a case –
- in relation to which an examination of the available evidence was required for the purposes of regulation 20(1)(a) of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018; or
- in relation to which an examination of the economic conditions was required for the purposes of Article 211(4)(b) of the Union Customs Code (Regulation (EU) No 952/2013).
The processing of solid and fluid fractions of palm oil, coconut oil, fluid fractions of coconut oil, palm kernel oil, fluid fractions of palm kernel oil, babassu oil or castor oil into products which are not destined for the food sector.
The processing of goods into products to be incorporated in or used for civil aircraft for which an airworthiness certificate has been issued.
The processing into products benefitting from relief under section 19 of the Taxation (Cross-border Trade) Act for weapons and military equipment.
 The processing of goods into samples.
The processing of any electronic type of components, parts, assemblies or any other materials into information technology products.
The processing of goods falling within classification codes 2707 or 2710 into products falling within classification codes 2707, 2710 or 2902.
The reduction to waste and scrap, destruction, recovery of parts or components.
An operation constituting a usual form of handling of goods as specified in a notice published by HMRC.
An operation in respect of goods where the aggregate value of goods to be declared for an inward processing procedure in that calendar year by the applicant does not exceed:
- in the case of sensitive goods (as defined in the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018), £135,000 for each classification code;
- in all other cases £270,000 for each classification code except where, if the goods were declared for the free-circulation procedure:
- those goods would be subject to an agricultural policy measure or an additional amount of import duty by virtue of section 13, 14 or 15 of the Taxation (Cross-border Trade) Act 2018, or
- the importer of the goods would be required to give a guarantee under paragraph 15(5) of Schedule 4 to that Act.

The following has force of law by virtue of regulation 22(3)(c)(iii) of The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018  

Arrangements of the following description are specified for the purposes of regulation 22(3)(c)(iii):

An arrangement that does not require the parties to impose a restriction on the application of preferential treatment, to goods, having been produced using goods declared for an inward processing procedure under the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018, where those goods are exported from the territory of the party to the arrangement.

The following text has force of law, by virtue of Regulation 24(1)(a) and 24 (2) of The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018

For the purposes of regulation 24(1) of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018, the quantity of goods declared for the inward processing procedure that are to be treated as present in the processed goods is determined

in accordance with the methods specified in paragraph (2), (3) or (4) below.

Where only one kind of processed goods is obtained from the processing operation, the relevant method is:

PQP is the percentage of the total quantity of the processed goods resulting from the processing operation constituted by the processed goods for which import duty is incurred.

TQG is the total quantity of the goods released to the inward processing procedure.

Where:

different kinds of processed goods are derived from the processing operations; and
all constituents or components of the goods released to the inward processing procedure are found in each of those kinds of processed goods,

the relevant method is:

PQPSK is the percentage of the total quantity of the processed goods of the same kind resulting from the processing operation that is constituted by the processed goods for which import duty is incurred.

PQPAK is the percentage of the total quantity of all processed goods resulting from the processing operation that is constituted by the total quantity of the processed goods of the same kind.

TQG is the total quantity of the goods released to the inward processing procedure.

In the above method, goods are ‘of the same kind’ if they are the same kind of goods as those in respect of which import duty is incurred.

In all other cases the relevant method is:

PVPSK is the percentage of the total value of the processed goods of the same kind resulting from the processing operation that is constituted by the value of the processed goods for which import duty is incurred.

PVPAK is the percentage of the total value of all processed goods resulting from the processing operation that is constituted by the total value of the processed goods of the same kind.

TQG is the total quantity of the goods released to the inward processing procedure.

In the above method, goods are ‘of the same kind’ if they are the same kind of goods as those in respect of which import duty is incurred.

For the purposes of the calculations in paragraphs 2 and 3 any part of the goods destroyed or lost during the processing operation are to be disregarded from the total quantity of the goods released to the inward processing procedure.
For the purposes of the calculation in paragraph 4, the value of the processed goods is to be established on the basis of:
the current ex-works price in the United Kingdom;
where the current ex-works price cannot be determined, the current selling price in the United Kingdom for identical or similar goods; or
where the value of the processed goods cannot be established on the basis of (a) or (b), any reasonable method agreed with HMRC.
A price is only to be used for the purposes of establishing the value of the processed goods under paragraph 6 if it is the price that would be paid in an arm’s length transaction between parties. Prices between parties that appear to be associated or to have a compensatory arrangement with each other cannot be used for the determination of the value of the processed products unless it can be established that the prices are unaffected by the relationship.
“ex-works price” means:
the price paid for the goods ex-works to the manufacturer in whose undertaking the last working or processing is carried out, where that price includes the value of all the materials used and all other costs related to production of the goods, minus any internal taxes which are, or may be , repaid when those good are exported; or
where the value at (a) does reflect all the costs incurred in Great Britain relating to the manufacturing of the goods, the ex-works price is the sum of those costs, minus any internal taxes which are, or may be, repaid when those goods are exported.
In the definition of “ex-works price” in paragraph 8 where the last working or processing has been sub-contracted to a manufacturer, the term “manufacturer” refers to the enterprise that has employed the subcontractor.

The following text has force of law, by virtue of Regulation 26(4) of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 

For the purposes of regulation 26(4) of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018, the requirements are that

the holder of the procedure must obtain approval from HMRC before goods subject to an inward processing procedure are temporarily exported or removed from Great Britain to Northern Ireland for:
processing for the purposes of paragraph 9(6)(a) of Schedule 2 to the Taxation (Cross-border Trade) Act 2018, or
an operation as described in paragraph 11 of Schedule 2 to the Taxation (Cross-border Trade) Act 2018; and
the temporary export or removal, and any use of the goods while outside Great Britain must be in accordance with any conditions specified by HMRC in an approval notice given to the holder of the procedure.

The following text has force of law, by virtue of Regulation 43(2) of The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018  

The evidence which is to be required for the purposes of showing that:

a storage procedure, under which goods can be kept in a premises approved by HMRC (customs warehouse);
an inward processing procedure;
an authorised use procedure; and
a temporary admission procedure.

has been discharged is any evidence specified as required by HMRC in an approval notification in relation to an authorisation.

The evidence which may be sufficient for the purposes of showing that one of the above Customs procedures has been discharged is set out below. This list is not exhaustive and applies only to the extent that the items listed are relevant to the discharge of the relevant procedure.

customs declaration of the goods for another Customs procedure (or, where relevant, an equivalent declaration to a procedure in the Isle of Man).
export declaration for the goods.
evidence of the destruction of the goods.
 a Goods Departed Message (GDM).
evidence that the goods have been declared for a customs procedure in Northern Ireland.
commercial documentation including:
customer orders
contracts
correspondence
copy invoices
advice notes
consignment notes
packing lists
insurance and freight charges
evidence of payment
credit transfer documents

The following text has force of law, by virtue of Regulation 43(3)(b) of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 

For the purposes of regulation 43(3)(b) of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018, the quantity of goods destroyed should be determined using the following formula:

Where:

A is the goods of the same type as the destroyed goods that were, at the time when the destruction or loss occurred, released to the relevant non-transit Part 1 procedure and placed together with other goods of the same type in the location where the destruction occurred
B is all the goods of the same type as the goods destroyed that were, at the time when the destruction occurred, placed together in the location where the destruction occurred
C is the goods that were destroyed

This following text has force of law, by virtue of Regulation 44(3) of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulation 2018 

So far as appropriate to the relevant person, goods and Customs procedure, the records to be kept and preserved for the purposes of regulation 44(1) of The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 should include the following:

details of the authorisation under which the goods have been declared for the relevant procedure (such as a reference number)
a Master Reference Number (MRN) issued by HMRC or, where it does not exist, any other number or code identifying the Customs declaration of goods for the procedure
information about the manner in which the procedure was discharged
data that allows the identification of documents other than Customs declarations, which are relevant to the declaration of goods for the procedure
data that allows the identification of documents relevant to the discharge of the procedure
particulars of marks, identifying numbers, number and kind of packages, the quantity and usual commercial or technical description of the goods and, where relevant, the identification marks of the container necessary to identify the goods
the location of goods and information about any movement of the goods
whether the goods are domestic or chargeable
whether goods have been imported
particulars of any usual forms of handling of the goods and, where applicable, any new classification code resulting from that operation
particulars of temporary admission or authorised use of the goods
particulars of inward processing or outward processing including information about the nature of the processing or other operation
the costs for storage or any operations constituting usual forms of handling of the goods
where appropriate to the goods, the rate of yield, approved quantity of goods resulting from processing and the approved methodology used
particulars enabling customs control of the use of equivalent goods
where accounting segregation is required, information about goods including domestic or chargeable status, whether they are imported, whether they are equivalent goods and, where appropriate, the origin of the goods
where appropriate, particulars of any transfer of rights and obligations in relation to the goods
where the records are not part of the main accounts for customs purposes, a reference to those main accounts for customs purposes
any additional information that HMRC require to be retained, for justified reasons

A person subject to the requirements of these paragraphs shall update any record at the time when any information that is to be kept and preserved is first known to them, or as soon as possible thereafter.

However, where goods declared for a storage procedure are moved from a customs warehouse in order to be exported or removed to Northern Ireland , records shall be updated to provide information about the movement of the goods:

within 100 days of the goods being removed from the customs warehouse, or
within such longer period approved by HMRC

Records may be kept and preserved in any form sufficient to enable an HMRC officer to control the procedure and to enable the person subject to these requirements to demonstrate to an HMRC officer that the conditions and requirements of the procedure have been satisfied

Records must be kept and preserved for a minimum of three years unless elsewhere specified.

HMRC may waive any of the requirements set out above in particular cases.

In the case of temporary admission, records shall be kept only if a person is notified of this requirement by HMRC.

An authorised economic operator for the purposes of section 22 of the Taxation (Cross-border Trade) Act 2018 is deemed to comply with the requirements set out in these paragraphs insofar as their records in relation to the relevant procedure are, in the opinion of an HMRC officer, appropriate.

These paragraphs apply in addition to any requirements for the keeping and preservation of accounts and records, as set out in or under any other legislation which applies for customs purposes.

The following text has force of law, by virtue of Regulation 45(6) of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018

An equivalent goods authorisation in relation to the declaration of goods for an inward processing procedure is subject to the conditions set out below in relation to the identified goods.

Reference below to goods that are imported is to ‘the imported goods’ as set out at paragraph 23(1) of Schedule 2 to the Taxation (Cross-border Trade) Act 2018.

Any reference to the exportation of goods (however framed) should be treated as including a reference to removal of those goods from Great Britain to Northern Ireland.

References to goods that are domestic are to equivalent domestic goods as defined at paragraph 23(2) of that Schedule.

Rice 

Rice classified under classification code 1006 shall not be equivalent goods unless it falls within the same classification code as the imported goods. Nevertheless, for rice with:

a length not exceeding 6,0 mm and a length/width ratio equal to or more than 3; and
a length equal to or less than 5,2 mm and a length/width ratio equal to or more than 2

equivalence shall be established by determination of the length/width ratio only. The measurement of the grains shall be done in accordance with Annex I Part II to Regulation 1308/2013

Wheat 

Equivalent goods may be used only between:

wheat harvested outside the United Kingdom and discharged from the free-circulation procedure in the United Kingdom; and
imported wheat of the same classification code, having the same commercial quality and the same technical characteristics.

However, the use of equivalent goods is permitted between domestic and imported durum wheat, provided it is for the production of pasta falling within classification codes 1902 11 00 and 1902 19.

Sugar 

The use of equivalent goods is permitted between:

imported raw cane sugar (classification codes 1701 13 90 and/or 1701 14 90) and
sugar beet (classification code 1212 91 80)

providing that the goods obtained from processing fall within classification code 1701 99 10 (white sugar).

The equivalent quantity of raw cane sugar of standard quality as defined in point III of Part B of Annex III to Regulation (EU) No 1308/2013 shall be calculated by multiplying the quantity of white sugar with the coefficient 1, 0869565.

The equivalent quantity of raw cane sugar not of standard quality shall be calculated by multiplying the quantity of white sugar with a coefficient obtained by dividing 100 by the yield of raw cane sugar. The yield of raw cane sugar shall be calculated as set out in point III of Part B of Annex IIĪ to Regulation (EU) No 1308/2013.

Live animals and meat 

Equivalent goods may not be used for live animals or meat.

Maize 

The use of equivalent goods in relation to maize is possible only in the following cases and subject to the following conditions:

in the case of maize for use in animal feed, the use of equivalent goods is possible provided that a customs control system is set up to ensure that the imported maize is in fact used for processing into animal feed
in the case of maize used in the manufacture of starch and starch products, the use of equivalent goods is possible between all varieties with the exception of maizes rich in amylopectin (wax-like maize or ‘waxy’ maize) which are only equivalent between themselves.
in the case of maize used in the manufacture of meal products, the use of equivalent goods is possible between all varieties with the exception of maizes of the vitreous type (‘Plata’ maize of the ‘Duro’ type, ‘Flint’ maize) which are only equivalent between themselves.

Olive oil  

Use of equivalent goods is permitted only in the following cases and under the following conditions:

A.1. Virgin olive oil:

(a) Between

domestic extra virgin olive oil falling within classification code 1509 10 90, which corresponds to the description in Point 1(a) of Part VIII of Annex VII to Regulation (EU) No 1308/2013; and
imported extra virgin olive oil of the same classification code, provided that the processing operation produces extra virgin olive oil falling within the same classification code and satisfying the requirements of Point 1(a) of Part VIII of Annex VII to Regulation (EU) No 1308/2013.

(b) Between

domestic virgin olive oil falling within classification code 1509 10 90, which corresponds to the description in Point 1(b) of the Part VIII of Annex VII to Regulation (EU) No 1308/2013; and
imported virgin olive oil of the same classification code, provided that the processing operation produces virgin olive oil falling within the same classification code and satisfying the requirements of Point 1(b) of Part VIII of Annex VII to Regulation (EU) No 1308/2013

domestic lampante virgin olive oil falling within classification code 1509 10 10, which corresponds to the description in Point 1(c) of the Part VIII of Annex VII to Regulation (EU) No 1308/2013; and
imported lampante virgin olive oil of the same classification code, provided that the processed goods are either:

i refined olive oil falling within classification code 1509 90 00 which corresponds to the description in Point 2 of Part VIII of the above– mentioned Annex VII, or

ii olive oil falling within classification code 1509 90 00 which corresponds to the description in Point 3 of Part VIII of Annex VII and is obtained by blending with domestic virgin olive oil falling within classification code 1509 10 90.

A.2. Olive-pomace oil:

Between:

domestic unrefined olive-pomace oil falling within classification code 1510 00 10 which corresponds to the description in Point 4 of Part VIII of Annex VII to Regulation (EC) No 1234/2007, and
imported unrefined olive-pomace oil of the same classification code, provided that the olive-pomace oil processed goods falling within classification code 1510 00 90 and corresponding to the description in Point 6 of Part VIII of Annex VII is obtained by blending with domestic virgin olive oil falling within classification code 1509 10 90.

The blendings referred to in Point A.1(c)(ii) (olive oil) and Point A.2, with imported virgin olive oil, used in an identical manner, will be authorised only where the arrangements for the control of the procedure are organised in a manner that makes it possible to identify the proportion of imported virgin olive oil in the total quantity of blended oil exported.
The processed goods must be put into immediate packaging of 220 litres or less. In the case of agreed containers of 20 tonnes maximum, HMRC will allow the exportation of the oils referred to above on condition that there is systematic control of the quality and quantity of the exported goods.
Equivalence will be checked by using commercial records to verify the quantity of oils used for blending and, for the purpose of verifying the quality concerned, by comparing:

the technical characteristics of samples of the imported oil taken when it was declared for an inward processing procedure with the technical characteristics of the samples of the domestic oil used taken when the processed goods concerned were processed against
the technical characteristics of the samples taken at the time of actual exportation of the processed goods.

Samples shall be taken in accordance with international standards EN ISO 5555 (sampling) and EN ISO 661 (sending of samples to laboratories and preparation of samples for tests). The analysis shall be carried out with reference to the parameters in Annex I to Commission Regulation (EEC) No 2568/91.