Temporary Export - Outward processing by Declaration

Good morning, I am finding conflicting information on this subject. We are trying to assist a customer to find the correct CPC code to make a temporary export by declaration to the EU to allow an excavator to be modified and then moved back to the UK as returned goods. There are 2 conflicting links on the government website relating to 21 00 004. One stating it is the correct code and one stating that this code should only be used for repairs. Any help or guidance on this one would be appreciated! This section clearly outlines 21 00 004 as the correct code https://www.gov.uk/guidance/using-outward-processing-to-process-or-repair-your-goods#exporting-goods-for-repair-or-alteration-under-a-free-trade-agreement This section states that 21 00 004 should be used for repairs. Customs procedure codes starting with 21 Temporary export under the customs outward processing procedure. https://www.gov.uk/government/publications/uk-trade-tariff-customs-procedure-codes/exports-customs-procedure-codes#customs-procedure-codes-starting-with-21

You will require an OP authorisation which ever code you use.. If the repairs are free under warranty, you only pay VAT on the Transport and insurance on return. VAT if you are VAT registered in the can be claimed back. If the repairs are a cost VAT is payable on the invoice generated to you. 

Remember if you use outward processing on export you/ your customer will need to reimport using outward processing as well. Duties/ tax will be due on the cost of the modification.Returned goods can only be used if the goods have not undergone any changes, The goods must be re-imported in an unaltered state, apart from any work that may have been carried out to maintain the goods in working order, the goods cannot have been upgraded to increase their value.specifically they must not have been exported to be repaired or processed.

Thanks - this project is specifically to send an excavator from the UK to NL to be modified. The unit then has to come back to the UK. It must go out as a temporary export by declaration. The most suitable codes look to be 2100004 or 2200000 but there is still some ambiguity in the advice from HMRC

Hi Neil Keeping,

Unfortunately we are unable to offer advice on procedure codes.
Depending on if trader is using CHIEF or CDS for exports, they would need to look for appropriate codes online.
Appendix 1: DE 1/10: Requested and Previous Procedure Codes
Exports: customs procedure codes

Thank you.
 

VAT Payable - Non-Warranty Repair Export through CHIEF Customs Procedure Code 2200 000 can be used for duty-free goods that are being temporarily exported outside the UK for process, repair, adaptation, reworking or making up. Use of this code constitutes a declaration that the goods are intended for temporary export, for the purpose of processing or treatment outside the UK, and for re-importation after completion of the process. Export through CDS Customs Procedure Code 2200 B54 can be used to for duty-free goods that are being temporarily exported outside the UK for process, repair, adaptation, reworking or making up. Use of this Procedure Code constitutes a declaration that the goods are intended for temporary export, for the purpose of processing or treatment outside the UK, and for re-importation after completion of the process. Note: Procedure 2200 B54 cannot be used if the goods are only duty-free by virtue of a Free Trade Agreement. Procedure 2200 B53 must be used instead. Note that the procedure can only be used 3 times in any 12-month period. Scenario In our scenario, the tools are being temporarily exported outside the UK for a process (sharpening). They will then be re-imported to the UK after completion. The “Process”, sharpening in this case, would be subject to VAT on importation to the UK under the following guidelines. Re-import through CDS (CHIEF Can no longer be used) Procedure 6122 B06 should be used to re-import the duty free goods after processing, with VAT chargeable at importation (unless exemption is claimed) on the following value: The freight charged for the transport to and from the processor’s premises (but not insurance) The price charged for the process, repair or service, including any charge for parts and materials To declare the amount of VAT payable on an import customs declaration, Tax type code B00 should be used, with the amount of VAT payable or postponed manually calculated. HMRC advises that the use of Procedure 6122 B06 constitutes a declaration that the goods: Were previously exported outside the UK Were exported using CPC 22 00 000 in SAD Box 37 under CHIEF, or Were exported using Procedure 22 00 B54 in DE 1/10 and 1/11 under CDS Were intended at the time of their export to be re-imported after completion of the treatment or process outside the UK Have been repaired, processed, adapted, reworked or made up outside the UK Ownership was not transferred to any other person at exportation or during the time they were outside the UK To conclude, the tools which were temporarily exported for a process (sharpening) are subject to VAT at importation on the cost of the process, including parts and materials used in the process. VAT Exempt - Warranty Repairs An example of VAT not being payable upon importation would be where the “tool” was under a warranty or was faulty and was being repaired as a part of this cover. VAT exemption would apply and therefore, VAT would not be payable at re-importation

VAT Payable - Non-Warranty Repair Export through CHIEF Customs Procedure Code 2200 000 can be used for duty-free goods that are being temporarily exported outside the UK for process, repair, adaptation, reworking or making up. Use of this code constitutes a declaration that the goods are intended for temporary export, for the purpose of processing or treatment outside the UK, and for re-importation after completion of the process. Export through CDS Customs Procedure Code 2200 B54 can be used to for duty-free goods that are being temporarily exported outside the UK for process, repair, adaptation, reworking or making up. Use of this Procedure Code constitutes a declaration that the goods are intended for temporary export, for the purpose of processing or treatment outside the UK, and for re-importation after completion of the process. Note: Procedure 2200 B54 cannot be used if the goods are only duty-free by virtue of a Free Trade Agreement. Procedure 2200 B53 must be used instead. Note that the procedure can only be used 3 times in any 12-month period. Scenario In our scenario, the tools are being temporarily exported outside the UK for a process (sharpening). They will then be re-imported to the UK after completion. The “Process”, sharpening in this case, would be subject to VAT on importation to the UK under the following guidelines. Re-import through CDS (CHIEF Can no longer be used) Procedure 6122 B06 should be used to re-import the duty free goods after processing, with VAT chargeable at importation (unless exemption is claimed) on the following value: The freight charged for the transport to and from the processor’s premises (but not insurance) The price charged for the process, repair or service, including any charge for parts and materials To declare the amount of VAT payable on an import customs declaration, Tax type code B00 should be used, with the amount of VAT payable or postponed manually calculated. HMRC advises that the use of Procedure 6122 B06 constitutes a declaration that the goods: Were previously exported outside the UK Were exported using CPC 22 00 000 in SAD Box 37 under CHIEF, or Were exported using Procedure 22 00 B54 in DE 1/10 and 1/11 under CDS Were intended at the time of their export to be re-imported after completion of the treatment or process outside the UK Have been repaired, processed, adapted, reworked or made up outside the UK Ownership was not transferred to any other person at exportation or during the time they were outside the UK To conclude, the tools which were temporarily exported for a process (sharpening) are subject to VAT at importation on the cost of the process, including parts and materials used in the process. VAT Exempt - Warranty Repairs An example of VAT not being payable upon importation would be where the “tool” was under a warranty or was faulty and was being repaired as a part of this cover. VAT exemption would apply and therefore, VAT would not be payable at re-importation

Hi 
Unfortunately we are unable to offer advice on procedure codes, you will need to speak to a customs agent.
Although, if the goods are exported for repair, you can look in to outward processing relief codes around that.
Using outward processing to process or repair your goods
Thank you.