The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
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 an overview of the simplified authorisation that can be used in respect of certain goods imported under IPR. It should be noted that since 1 April 2010 it is no longer possible to use a simplified authorisation with goods imported under IPR drawback. For general information on IPR, see the Inward Processing Relief (IPR) overview guidance note.
This can only be used for individual import entries and businesses apply for it by using certain CPCs on the C88 entry declaration (see below). When Customs accept the declaration they have granted authorisation to the importer to use a simplified authorisation. No prior authorisation is required. However it should be noted that HMRC can cancel the authorisation and any suspended duty will become payable should they discover that the C88 was incorrectly completed. A simplified authorisation is not available where the importer has to satisfy the economic test (see below).
It should be noted that simplified authorisation should only be used by importers who intend to import goods occasionally using IPR and the processing work will only take place within the UK. Regular importers should consider using one of the other authorisations listed in the Inward Processing Relief (IPR) overview guidance note. This guidance note also provides an overview of the conditions that need to be met before a business can use IPR.
HMRC produces guidance as
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