OPR - claiming duty relief

By Tolley
VAT_tax_img3

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

  • OPR - claiming duty relief
  • Customs value calculation
  • Claiming relief
  • Calculating the amount of relief
  • Information documents

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 235 Outward Processing Relief (LNB News 26/11/2007 80); 2913/92/EEC , Articles 84–90 and 145–160; 2454/93/EEC , Articles 496–585 and 592; De Voil Indirect Tax Service V17.137 (subscription sensitive); OPR13000

This guidance note provides an overview of how the amount of customs duty relief is calculated and claimed on goods exported using OPR. This note should be read in conjunction with the Outward processing relief (OPR) - overview, OPR - obtaining authorisation, OPR - exporting and re-importing goods and OPR - Customs procedure codes (CPC) guidance notes.

Customs value calculation

When the compensating products are re-imported into the UK, they must be valued using the same method applied to any other imported goods. Full details can be found in the Importing goods - overview - calculating the customs valuation guidance note.

For temporarily exported goods the value will either be:

  • the value of the exported goods used in the built up value of the compensating product (if the value of the compensating product is based upon the built up value
  • the difference between the value of the compensating product and the processing costs, including freight costs, etc charged in respect of the imported products (if the value of the compensating products is not based on the built up value)

If the business exports goods which it has imported into the EU from a non-EU country, it must include any customs duty and other customs charges that are payable

More on Customs and international trade: