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 main rules relating to importing goods that will be processed under customs control. This note should be read in conjunction with the PCC - obtaining authorisation, PCC - importing goods, PCC - transferring goods, and PCC - disposing of the goods guidance notes.
The customs tariff is intended to ensure that imported finished goods attract a higher rate of customs duty than the raw materials / components from which they were made. This encourages production to take place in the EU and therefore gives jobs to EU workers and helps the EU economy rather than encouraging production to take place outside the EU.
However, certain processed goods will be liable to customs duty at a lower rate of duty than the raw materials / components used to produce them, so it may be more beneficial for the manufacturer to import the finished product, rather than the raw materials / components to manufacture the product within the EU. This may discourage businesses from manufacturing these products within the EU.
PCC can be used to import raw materials / components into the EU under a duty suspension regime. After processing, the finished product can be declared into free circulation within the EU using the lower rate of customs duty that is applicable to the finished product.
PCC can only
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