Customs Information Paper 48 (2015)

Customs Procedure Codes (CPCs) for the repair or processing of goods. Who should read: Traders or agents involved in exporting goods for repair and re-importing to a CPC with a VAT only liability.

What is it about: Change of eligible goods to CPCs 22 00 000, 40 00 065, 40 22 065 and 49 00 065

When effective: 1 January 2016.

Extant until/ Expires Until further notice.

1. Background.

EU Regulation 113/2010 provides a legislative requirement to exclude 'repair' movements from the trade statistics.

It has therefore been necessary to review the CPCs which have combined processing and repair conditions under one CPC.

In order to identify goods being processed and those being repaired we have adjusted existing CPCs and created some new ones.

The new CPCs are only for goods being repaired.

2. Review of CPCs for Processing of Goods.

The review of CPCs has identified existing CPCs that need to be amended to exclude repairs and where new ones need to be created to ensure the UK comply with the Commission Regulation.

Currently CPCs 22 00 000, 40 00 065, 40 22 065 and 49 00 065 cover both repair and processing.

The following CPCs will be split to enable the UK to meet legal requirements.

They will no longer cover the repair of goods. New Process Only CPC Current CPC Wording Wording 22 00 000 22 00 000 Community goods, being Community goods, being temporarily exported outside temporarily exported outside the Community for process, the Community for process, repair, adaption, reworking or adaption, reworking or making up outside the making up outside the Community where VAT relief Community where VAT relief only will be claimed when the only will be claimed when the compensating products are re- compensating products are imported. re-imported.

40 00 065 40 00 065 Goods reimported after repair, Goods reimported after process, adaptation, reworking process, adaptation, or making up outside the reworking or making up Community: outside the Community: - which are not appropriate to - which are not appropriate to Outward Processing Relief Outward Processing Relief (code 61); and (code 61); and - on which relief from VAT only - on which relief from VAT is claimed. only is claimed.

40 22 065 40 22 065 Goods being removed from a Goods being removed from a customs warehouse customs warehouse reimported after repair, reimported after process, process, adaptation, reworking adaptation, reworking or or making up outside the making up outside the Community: Community: - which are not appropriate to - which are not appropriate to Outward Processing Relief Outward Processing Relief (code 61); and (code 61); and - on which relief from VAT only - on which relief from VAT is claimed. only is claimed.

49 00 065 49 00 065 Goods in free circulation Goods in free circulation reimported from a Special reimported from a Special Territory or those countries Territory or those countries having a customs union with having a customs union with the EC, such as Turkey, San the EC, such as Turkey, San Marino or Andorra (for goods Marino or Andorra (for goods in Chapters 25-97 of the Tariff) in Chapters 25-97 of the after repair, process, Tariff) after process, adaptation, reworking or adaptation, reworking or making up outside the Member making up outside the States: Member States: - which at the time of - which at the time of exportation were intended to exportation were intended to be reimported after be reimported after completion completion of the treatment or of the treatment or process; process; and and - the ownership of which was - the ownership of which was not transferred to any other not transferred to any other person at exportation or person at exportation or during during the time they were the time they were outside the outside the member states for member states for which relief which relief from VAT is from VAT is claimed. claimed.

3 New CPCs for the Repair of Goods.

22 00 003 Community goods, being temporarily exported outside the Community for repair outside the Community, where VAT relief only will be claimed when the compensating products are re-imported. 40 00 075 Goods reimported after repair outside the Community: - which are not appropriate to Outward Processing Relief (code 61); and - on which relief from VAT only is claimed. 40 22 066 Goods being removed from a customs warehouse reimported after repair, outside the Community: - which are not appropriate to Outward Processing Relief (code 61); and - on which relief from VAT only is claimed. 49 00 066 Goods in free circulation reimported from a Special Territory or those countries having a customs union with the EC, such as Turkey, San Marino or Andorra (for goods in Chapters 25-97 of the Tariff) after repair outside the Member States: - which at the time of exportation were intended to be reimported after completion of the treatment or process; and - the ownership of which was not transferred to any other person at exportation or during the time they were outside the member states for which relief from VAT is claimed.

4. Contacts

For enquiries regarding this paper please contact the VAT, Excise and Customs Helpline on 0300 200 3700 Issued on the 13 November 2015 by Customs Directorate, HMRC.

For general HMRC queries speak to the VAT, Excise & Customs Helpline on telephone: 0300 200 3700. Your Charter explains what you can expect from us and what we expect from you. For more information go to: Your Charter