IP –Summary
Inward Processing allows for the importer to bring goods into the country for some form of processing. Link to full HMRC guidance at the bottom of the page.
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As an example this can be applied to repairs to a boat or materials that are going to be used to manufacture another product. Complete relief from payment of import VAT and Duty is given if you have an IP authorisation issued by HMRC.
If no prior authorisation has been given then IP Authorisation by Declaration can be utilised (maximum of three times in a calendar year) but import VAT and Duty would need to be paid on deposit to be claimed back later.
Inward Processing – Full Authorisation
IP "Full Authorisation" needs to be applied for prior to use. If you regularly import goods for processing then this is a must have. A full application must be made by yourselves direct to HMRC. Once authorised to do so you can import goods without needing to pay for VAT/DUTY on deposit. They must be exported correctly out of the IP procedure and all records must be kept.
We can assist with applications, import declarations and with the correct re-export procedure to ensure HMRC procedures are adhered too. Whether you need help with an IP application from start to finish or even require ad-hoc advice about certain sections then we can help you.
Inward Processing - Authorisation by Declaration
Without prior HMRC authorisation this is the next option. Upon submitting an import declaration. IP is declared and the information provided processed. Any potential import VAT and Duty must be paid as a deposit to customs which can then later be re-claimed back upon correct re-export. More information must also be provided with things like Rate of Yield, Length of time until re-export and type of processing taking place, all being taken in to account.
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You, as the importer, can only submit three of these per calendar year up to a value of £500,000 per import.
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We can submit these declarations on your behalf and guide you through the process.
Customs Guidance Link
Full customs guidance can be found here on the HMRC website.
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Contact us to discuss this further and let us know how we can assist you.
