IPR - economic codes, requiring a guarantee, etc

By Tolley in association with Vince Ashall
VAT_tax_img7

The following Value Added Tax guidance note by Tolley in association with Vince Ashall provides comprehensive and up to date tax information covering:

  • IPR - economic codes, requiring a guarantee, etc
  • Economic codes
  • Dairy products
  • Goods requiring a guarantee

Please note that the procedure outlined below ceased to be applicable when the Union Customs Code was introduced on the 1 May 2016. Please see the Union Customs Code - Customs Special Procedures - authorisation and other guidance notes in the Union Customs Code subtopic for more information on the current rules.

This guidance note provides details of the economic codes that may be used when businesses import goods under IPR. This note should be read in conjunction with the Inward Processing Relief (IPR) overview guidance note.

Economic codes

HMRC Notice 221 (LNB News 16/10/2007 74) provides further guidance on the use of the codes as detailed below.

2454/93/EEC , Annex 70; HMRC Notice 221 (LNB News 16/10/2007 74)
Code 01

This code can be used for goods:

  • that do not require an economic test - see the Inward Processing Relief (IPR) overview guidance note
  • where the value of goods imported under each commodity code, per calendar year, will be at least €50,000
  • in addition to code 30(7), codes 30(1), 30(2), 30(3), 30(4) and 30(8) do not apply (see below)
Code 10 (unavailability)

This code can only be used in respect of the types of goods that would normally require an economic test (subject to the threshold being exceeded). Please see the Inward Processing Relief (IPR) overview guidance note for more information.

  • this code should be used if information on the quantity of identical goodsproduced in the Community is unavailable at the time the application is submitted. Identical means goods of the same technical characteristics / commercial quality.
  • the value of

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