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Suspending or delaying payments of Customs Duty, import VAT and other tax charges

Published 29 May 2025

Inward processing

Description of inward processing authorisation

Inward processing allows the suspension of Customs Duty and import VAT on eligible goods. To be eligible, the goods must be imported from outside the UK for processing or repair and then re-exported. The related proof of export customs clearance must be kept as evidence of re-export.

You will pay import duty and import VAT if the goods are released into free circulation. The rate of duty will be based on the commodity code, origin and value of the goods at import, or the commodity code, origin and value of the final product after processing. 

When you apply for inward processing, you will need to give one or more economic codes, to tell HMRC what you are going to do with the goods.

Some goods can be entered to inward processing using 바카라 사이트˜authorisation by declaration바카라 사이트™. This is where the import declaration serves as the application for authorisation.

Restrictions apply including:

• a limit of 3 times in a rolling 12 months
• the goods cannot be valued at more than £500,000 per import

You will need to provide a returnable financial guarantee if you use authorisation by declaration.

You can read guidance about inward processing in apply to delay or pay less duty on goods you import to process or repair.

Benefits and features of inward processing authorisation

Inward processing can allow you to reduce or delay import duty and VAT. This can help you with cashflow.

It promotes manufacturing in the UK to help UK traders compete without disadvantage on the world market.

When you hold inward processing authorisation, in addition to getting relief from Customs Duty and VAT, you can also benefit from:

• relief from anti-dumping duty and countervailing duty
• where appropriate, relief from excise duty and VAT

Outward processing

Description of outward processing authorisation

Outward processing allows a reduction in the duty paid or no payment needed of UK Customs Duty or import VAT on eligible goods. To be eligible, the goods must be temporarily exported from the UK for repair or processing overseas, and then reimported back into the UK.

Some goods can be entered to outward processing using 바카라 사이트˜authorisation by declaration바카라 사이트™. This is where the export declaration serves as the application for authorisation.

Restrictions apply including:

• a limit of 3 times in a rolling 12 months
• the goods cannot be valued at more than £500,000 per export

You will need to provide a returnable financial guarantee if you use authorisation by declaration to import compensating products before the goods are exported.

You can read guidance about outward processing in apply to pay less duty on goods you export to process or repair.

Benefits and features of outward processing authorisation

When you hold outward processing authorisation, you can benefit from:

• reduced duty payments
• using specialist skills outside the UK for processing or repairs, taking advantage of the cheaper labour costs outside the UK

Temporary Admission

Description of Temporary Admission authorisation

Temporary Admission allows goods to be brought into the UK for up to 24 months with relief from Customs Duty and import VAT before being re-exported. Different time limits may apply depending on the type of goods, the prescribed use and type of declaration made.

You will not need to pay import duty or VAT on these goods while they are under the Temporary Admission procedure. You cannot alter the goods during this time except to maintain their condition.

Most goods can also be entered to Temporary Admission using 바카라 사이트˜authorisation by declaration바카라 사이트™. This is where the import declaration serves as the application for authorisation.

You will usually need to provide a returnable financial guarantee if you use authorisation by declaration. 

Benefits and features of Temporary Admission authorisation

When you hold Temporary Admission authorisation, you may benefit from cost savings.

Temporary Admission may be a cost-effective option as import duty and VAT are suspended on goods while they are under the procedure. This can be particularly beneficial for businesses that regularly import and export goods for short-term events or projects.

When you hold this authorisation, you will get flexibility for your business to import goods temporarily without any permanent commitment.

Some examples of businesses that can benefit from Temporary Admission include those with foreign goods participating in trade shows, exhibitions, or events, for showcasing products and then re-exporting them. You can find other types of goods and businesses that may benefit from Temporary Admission in check if you can get import duty relief on goods using Temporary Admission.

Customs warehouse

Description of customs warehouse authorisation

A customs warehouse will allow you to store goods with duty or import VAT payments suspended. They are operated by warehouse keepers, who must be authorised by HMRC.

There are 2 types of customs warehouse:

• public warehouse 바카라 사이트” this is for businesses, known as warehouse keepers, who want to store goods belonging to other people also known as depositors
• private warehouse 바카라 사이트” this is for businesses, known as warehouse keepers and depositors, who want to store their own goods

Operating a customs warehouse requires the use of certain software approved by HMRC.

Warehouse keepers will often apply for other authorisations such as the simplified declaration procedure authorisation.

Benefits and features of customs warehouse authorisation

When you hold customs warehouse authorisation, you may benefit from cost savings.

Customs warehouse authorisation allows you to suspend duty and import VAT payments until the goods have left the customs warehousing procedure and entered free circulation. This can help you with cashflow. If the goods are re-exported, the suspended duty and import VAT do not become due.

It is also possible to discharge goods from a customs warehouse into another customs special procedure held by the same trader.

Using a customs warehouse also gives you the following benefits:

• there is no time limit for the storage of most types of goods in a customs warehouse
• controlled goods that require a license can be stored until the license is approved
• simple repairs or processes can be carried out to preserve, improve the presentation or prepare goods as explained under usual forms of handling

Authorised use (also known as end use)

Description of authorised use authorisation

Authorised use can assist certain industries and trades within the UK by providing relief from Customs Duty at a reduced or nil rate for specific goods.

The goods must be all of the following:

• imported from outside the UK
• put to a prescribed use
• processed within a specific period

Authorised use is commonly used for goods within industries such as aircraft, ship work, military, oil and gas, bicycle industries and for various goods used in the food industry such as cheese, fish and prawns.

Some goods can be entered to authorised use using 바카라 사이트˜authorisation by declaration바카라 사이트™. This is where the import declaration serves as the application for authorisation. Restrictions apply including:

• a limit of 3 times in a rolling 12 months
• the goods cannot be valued at more than £500,000 per import

You will need to provide a returnable financial guarantee if you use authorisation by declaration.

Specific civil aircraft imported under authorised use do not require an authorisation.

Benefits and features of authorised use authorisation

When you hold authorised use authorisation, you may benefit from cost savings.

This authorisation helps businesses save money by providing relief from customs duties at a reduced or nil rate.

Simplified Import VAT Accounting (SIVA)

Description of SIVA authorisation

SIVA is a scheme that allows you to reduce the level of financial guarantee needed to operate a duty deferment account for VAT purposes. It can reduce the amount of the guarantee so that it only covers duty and not VAT.

Benefits and features of SIVA authorisation

When you use SIVA, you may benefit from cost savings.

SIVA will remove the guarantee requirement for the amount of import VAT to be deferred.

SIVA allows smaller payments on a more frequent basis. When you use SIVA with a duty deferment account, you can make VAT payments each month. You will make the payments the month after import. This is better for some businesses rather than making an accumulation of payments over a longer period such as quarterly.

A business registered for VAT in the UK can also account for import VAT on their VAT return (also known as Postponed VAT Accounting).

Guarantees and guarantee waiver

Description of guarantees and guarantee waiver authorisation

A guarantee is an undertaking from a bank or insurer to pay the duty and VAT if the trader fails to make the payment.

The guarantee serves to make sure that any potential Customs Duty, taxes, or other charges owed to customs authorities will be paid in a timely manner.

Getting a guarantee waiver authorises you to provide a guarantee that is smaller than the total amount of taxes and duties being suspended or deferred (this can be up to the full amount).

If you are an authorised economic operator, a discretionary waiver against the need to hold a guarantee may be granted by HMRC.

Benefits and features of guarantees and guarantee waiver authorisation

If you get a guarantee or a guarantee waiver, it allows you to use transit, be authorised for customs special procedures, temporary storage, and operate a duty deferment account.

It can also help to speed up the customs clearance process for you. You will benefit from simplified administrative procedures.

Individual guarantee

Description of individual guarantee authorisation

You may use an individual guarantee to provide security to HMRC when using certain customs special procedures infrequently, up to 3 times in 12 months. These include procedures such as:

• inward processing
• outward processing
• authorised use (also known as end use)
• Temporary Admission

An individual guarantee is a financial product which covers the full value of the Customs Duty you are liable for when using these authorisations. This means if you are unable to pay any customs duties, they will be paid by your guarantor.

You may also use an individual guarantee as a temporary measure to cover declarations that exceed the level of your customs comprehensive guarantee.

Benefits and features of individual guarantee authorisation

An individual guarantee will let you use authorisations for infrequent imports, without applying for a full customs comprehensive guarantee.

You can use it to help cover potential large customs debt, especially for high-value goods, that cannot be covered by a full customs comprehensive guarantee.

You can also use it as a short-term solution to a particular customs requirement such as covering potential debt while goods are being valued.

Freeport customs special procedure

Description of Freeport customs special procedure authorisation

This authorisation allows you to import goods into designated Freeport customs sites for processing and storage with simplified declaration requirements. Your authorisation will specify whether you can use it to import goods for:

• processing and export
• processing and UK sale
• storage and export
• storage and UK sale
• storage and processing before export

Benefits and features of Freeport customs special procedure authorisation

When you hold Freeport customs special procedure authorisation, you will benefit from:

• streamlined customs processes including simplified import and export declaration procedures
• simplified procedures for moving goods inside and between different Freeport customs sites
• duty and import VAT suspension on goods under the Freeport customs special procedure

Temporary storage

Description of temporary storage authorisation

Temporary storage allows goods imported from outside the UK to be temporarily stored for up to 90 days under customs supervision before being:

• placed under a customs special procedure
• released for free circulation
• exported outside the UK

You can apply to have your premises approved as a temporary storage facility if you바카라 사이트™re a:

• port, airport or rail terminal operator
• freight forwarder
• customs agent
• warehouse keeper
• transport company

Benefits and features of temporary storage authorisation

You can defer making a full customs declaration and paying duties and taxes until the end of the goods바카라 사이트™ agreed storage period (up to 90 days).

This may provide flexibility for goods that:

• do not need to be immediately declared to a procedure
• are stored temporarily at border locations before being re-exported