IPR - transferring and disposing of goods

By Tolley

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • IPR - transferring and disposing of goods
  • Transferring IPR goods
  • Exports and re-exports
  • Postal exports
  • Special countries
  • Other types of disposal
  • Export evidence
  • Releasing goods into free circulation
  • Calculating the import taxes due

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.

Notice 221 (LNB News 16/10/2007 74); IPR11000; IPR14000; IPR15000; IPR16000; De Voil Indirect Tax Service V3.334 and V17.136 (subscription sensitive); 2913/92/EEC , Articles 89 and 128; 2454/93/EEC , Article 544

This guidance note provides an overview of the treatment of goods that are transferred, exported or otherwise disposed of whilst being held in the UK as IPR goods. This note should be read in conjunction with the following guidance notes:

  • Inward Processing Relief (IPR) overview
  • Entering goods under IPR
  • IPR - economic codes, requiring a guarantee, etc
  • IPR - guide to completing the forms
  • IPR - returns, claims and miscellaneous aspects
Transferring IPR goods

Goodsimported under IPR can be transferred to another IPR authorisation holder as long as the party receiving the goods has been approved to receive these goods.

If the recipient has not been authorised to receive the goods under IPR, the party transferring the goods may become liable for payment of any customs duties / taxes due plus compensatory interest.

There are various methods available (with their own specific conditions):

  • Full declaration method
  • Transit procedure
  • Paper 3-copy SAD transfer (for Suspension)
  • Simplified method 1 - Paper 2 – copy SAD transfer (for Suspension)
  • Simplified method 2 - Transfer using commercial documentation (for Suspension)

The business

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