Special Procedures Under the Union Customs Code (UCC)-Customs Procedure Codes (Cpcs)

Special Procedures under the Union Customs Code (UCC)-Customs Procedure Codes (CPCs)

Customs Information Paper 06 (2016)

Who should read: /

Anyone using Customs Special Procedures after 1 May 2016

What is it about: / Changes to CPCs and UK Tariff CPC notesfrom 1 May 2016
When effective: / 1 May 2016
Extant until/ Expires / Not applicable

1. Background.

Customs Information Paper 44 (2015) supplied guidance on the major changes to special procedures expected when the Union Customs Code (UCC) is implemented on 1 May 2016.

This Customs Information Paper(CIP) provides additional information on the impact the UCC will have on specific CPCs and UK Tariff CPC notes that support those codes.

Many of CPCs used for the import, export and discharge of special procedures will remain unchanged but this CIP explains some of the more significant changes to existing CPCs and identifies some new CPCs which will be set up.

2. Details of CPC changes.

All CPCs relating to the entry of goods toboth Processing Under Customs Control (PCC) and Inward Processing Drawback (IPD) procedures will be deleted from the CHIEF (Customs Handling of Import and Export Freight system) and also from the UK Tariff from 1 May 2016.

PCC discharge procedure CPCs in the 40 91 series will also be deleted. This is because these two procedures will not exist under the UCC. However, the IPD export CPCs in the 10 41 series will remain until December 2018 in order to permit discharge and reclaim for those traders with long throughput periods.

Additionally,substantial amendments will need to be made to existing Inward Processing (IP) CPCs- 10 40 006, 40 51 000 and 51 00 000.

One End Use import CPC (40 00 027) will be reserved for persons holding an authorisation issued under the Community Customs Code (CCC) and two new IP CPCs will be set up - 40 51 F44 and 51 00 F44.

Details of the use of these amended and new CPCs under the UCC are outlined in the table below.

CPC number / CPC usage under UCC / Further information
10 40 006
UCC Customs procedure: Inward Processing
Export CPC / CPC 10 40 006 was previously used for prior export equivalence (EX/IM) movements without an INF5 form. Under UCC it should no longer be used for EX/IM because an INF5 is now mandatory for all EX/IM movements (including those that take place solely within the UK). / You should now use CPCs in the 11 series for EX/IM movements.
Further information can be found in paragraphs 2.25 and 2.26 of the Special Procedures
Notice 3001
40 51 000
UCC Customs procedure: Inward Processing
Discharge CPC / CPC 40 51 000 is currently used to divert IP (suspension) goods entered under the CCC to free circulation using the duty rate of the original import goods.
The revisions to the CPC notes in the Tariff are required to accommodate the discharge (from 1 May 2016) of Inward Processing under Article 85 of the Union Customs Code.(ex PCC method of discharge)
Under this article, IP goods are declared to free circulation using the duty rate, value and quantity of the “processed” product rather than the original product imported to IP. / The UCC removes the requirement to re-export goods entered to IP and allows for two methods of calculation of duties if goods are declared to free circulation at the end of processing.
This CPC will be used for one method of calculation and a new CPC 40 51 F44 will be created to cover the second method.
Full details of the revised Tariff CPC notes are in the table in paragraph 4.
New CPC
40 51 F44
UCC Customs procedure: Inward Processing
Discharge CPC / This new IP CPC should be used where the processed products will be declared to free circulation using Article 86(3) of the Union Customs Code as the basis for valuation.
Under this article, IP goods are declared to free circulation using the duty rate, value and quantity of the “imported” goods (rather than the “processed” goods for which CPC 40 51 000 should be used).(current IP method) / Full details of the new Tariff CPC notes are in the table in paragraph 4.
40 00 027
Customs procedure: End Use / With effect from 1 May 2016 this CPC may only be used by current authorisation holders until the expiry of their CCC authorisation.
The CPC covers goods imported to fulfil contracts with the Ministry of Defence (MOD) or the military forces of other Member States, on which duty relief is claimed under Council Regulation 150/2003 / Traders wishing to supply MoD after their CCC End Use authorisation expires are advised to obtain the appropriate UCC Inward Processing authorisation.
For further information see Section 5 of Notice 3001 Annex C - Specific Use
51 00 000
UCC Customs procedure: Inward Processing
Import CPC / From 1 May 2016 IP authorisation holders will have to choose (at the time the goods are entered to the customs procedure) which method of duty calculation will be used on discharge.
Where the processed products will be declared to free circulation using Article 85 of the Union Customs Code as the basis for valuation (duty rate, value, quantity of the “processed” goods)
CPC 51 00 000 should be used. / Full details of the amended Tariff CPC notes are in the table in paragraph 4.
New CPC
51 00 F44
UCC Customs procedure: Inward Processing
Import CPC / Where the processed products will be declared to free circulation using Article 86(3) of the Union Customs Code as the basis for valuation (duty rate, value, quantity of the imported goods)
CPC 51 00 F44 should be used to enter the goods to IP. / Full details of the amended Tariff CPC notes are in the table in paragraph 4.
51 11 002(ex 51 00 002) / Goods imported from outside the Union, without payment of customs duty or VAT under prior export equivalence (EX/IM) / This CPC has just been renumbered

3. Detailed CPC notes for the UK Tariff.

The CPC section of theUK Trade Tariffis now available electronically on the gov.uk website. The UK Tariff is a technical manual and the notes for the CPCsin the table belowwill help you complete a customs declaration on CHIEF. The new CPC notes will be available in both the paper and electronic versions of the UK Tariff from 1 May 2016.

CPC 40 51 000 – revised CPC notes to permit discharge of IP using UCC Article 85 duty calculation

CPC note heading / CPC note text
Goods Covered / Goods initiallyenteredtoIPnowbeingdeclared to free circulation using Article 85 of the Union Customs Code as the basis for valuation (rate, value, quantity of the processed product).
Notice / 3001
Specific Fields in the declaration/notes on completion / Box1:entercodeIMfollowedby AorDasappropriate
Box40:enterpreviousdocumentclassZ,zzzandreferencetotherelatedimportentryin theformatEPU-Number-Date
Box44:
entertheappropriatelicencedetails(see AppendixC11 (of the Tariff))
and
enter IPauthorisationnumber
Additional documents required / Documentaryevidenceoftheamountofdutysuspendede.g.INF1authenticatedby the supervisingoffice
Security required / Nosecurityisrequiredfortariffquotareliefexceptwhereaclaimtopreferentialratesor tariffquotacannotbesubstantiatedfromthesupportingdocuments.
Removal canbeagainsttheappropriatesecurityoutlinedinparagraph3.8.14ofthe UK Tariff.
VAT
Registeredtaxablepersons
Exemptpersons / VATmustbepaidifthegoodsarechargeableatapositiverateanddetailswillbeincluded ontheVATcertificate.
VATmustbepaidifthegoodsarechargeableatapositiverate.
Notes / The declarationmustbeinthetermsofthe processed goods
If you are authorized or have requested permission and been approved to declare the goods at the time of first entry in the EU under Article 86(3) of the Union Customs Code, you should use CPC 40 51 F44.
If the goods first entered the EU in another Member State you should use the INF1 to provide the necessary information.

CPC 40 51 4FF – new CPC notes to permit discharge of IP using UCC Article 86(3) duty calculation.

CPC note heading / CPC note text
Goods Covered / Goods initiallyenteredtoIPnowbeingdeclared to free circulation using article 86(3) of the Union Customs Code as the basis for valuation (rate, value, quantity of the imported goods).
Notice / 3001
Specific Fields in the declaration/notes on completion / Box1:entercodeIMfollowedby AorDasappropriate
Box40:enterpreviousdocumentclassZ,zzzandreferencetotherelatedimportentryin theformatEPU-Number-Date
Box44 enter:
theappropriatelicensedetails (see AppendixC11 (of the Tariff)) and
IPauthorisationnumber
Additional documents required / Documentaryevidenceoftheamountofdutysuspendede.g.INF1authenticatedby the supervisingoffice
Security required / Nosecurityisrequiredfortariffquotareliefexceptwhereaclaimtopreferentialratesor tariffquotacannotbesubstantiatedfromthesupportingdocuments.
Removal canbeagainsttheappropriatesecurityoutlinedinparagraph3.8.14ofthe UK Tariff.
VAT
Registeredtaxablepersons
Exemptpersons / VATmustbepaidifthegoodsarechargeableatapositiverateanddetailswillbeincluded ontheVATcertificate.
VATmustbepaidifthegoodsarechargeableatapositiverate.
Notes / The declarationmustbeinthetermsoftheimportedgoods
If you are authorised to declare the processed products to free circulation under UCC Article 85 you should use CPC 40 51 000.

CPC 51 00 000 revised CPC notes – goods entered to IP for discharge under Article 85

CPC note heading / CPC note text
Goods Covered / Goods beingenteredtoIP by either;
theholderofafull or authorisation involving more than one Member Stateissuedundereconomic codes1,2,3,4,5,9,10,11,12,13,14 ,15,16,17,18,19,20,21,22
Goodsbeingenteredwithoutpaymentofcustomsduty,equivalentgoodshaving previouslybeenexportedusingpriorexportequivalence/priorimportequivalence.
Where the processed products will be declared to free circulation using Article 85 of the Union Customs Code as the basis for valuation. (rate, value, quantity of the processed goods)
Status of goods / Not in Free Circulation
Specific Fields in the declaration/notes on completion / Box1:entercodeIMfollowedby A,D,Y orZasappropriate.
Box44enter:
DocumentidentifierC601
IPauthorisationnumber
Donotenteradocumentstatuscode
AuthorisationholdersreferencenumberasaGEN45AIstatement(ifany)
Entertheappropriatelicencedetails–seeAppendixC10
Details of the guarantee reference number as an AI statement-GNRTR
Details of the guarantee ie name ,address of guarantor as an AI statement-GNRTR
Details of the AEO approval number to qualify for waiver of guarantee as an AI statement/details of waiver if not AEO-GNRTR
Box47: Enter‘PDY’asthelast3charactersintheratecolumntoallowCHIEFtocalculate thepotentialduty.
WherethegoodsaresubjecttoClimateChangeLevy(tax typecode990)ataxlinemust becompletedbutnolevyispayable.Useoverridecode“EXD”inBox47c andenterthe amountpayableas0.00inBox47d
Box47e: ifsecurityisnotrequireddonotenteranMPcode.
Security required / Securitymayberequiredtoensureconditionsandobligationsofthereliefwillbemet. The supervisingofficewillstateintheauthorisationornotifytheholderifsecurityis required.Ifsecurityisrequiredavaluationstatementwillbeneeded,seetheTariffVolume 1Part14forfurtherinformation.
Whererequired,securitymustbeby cashdepositorguarantee.InBox47enterMPcodeN, P, Q, S, T, UorVasappropriate.
Additional information / Box44: enterthefollowingstatementsinthe additionalinformation box:
DeclarethefullnameandaddressofthesupervisingCustomsOfficeasaSPOFFstatement
VAT / NoimportVATisdue onentriesmadetothisCPC
PostClearanceAction / EnquiriesmustbeaddressedtothesupervisingofficewhoseaddressisinBox44
Notes / This CPC must not be used for goods entered under an authorisation by declaration (see CPC 51 00 001)
Use of this CPC constitutes a declaration by the importer that the conditions laid down in CouncilRegulation 950/2013andCommissionRegulations 2015/2446 and 2015/2447. Anyone who gives untrue information about goods imported under these arrangements may be liable to penalties under the Customs and Excise Management Act 1979.
Agents must have prior written approval from the authorisation holder to enter goods to IP on their behalf and ensure a copy of the entry is returned to the holder.
Where the goods to be entered are liable to Climate Change Levy (tax type code 990) a tax line must be completed but no levy is payable. Use override code “EXD” in Box 47c and enter the amount payable as 0.00 in Box 47d.
IP allows relief from customs duty, specific customs duty, anti-dumping duty and countervailing duty.
Traders are reminded that failure to submit an Inward Processing Bill of Discharge (form TBA) by the due date to their supervising office may lead to having to pay any suspended duty and VAT. Any guarantee will not be released until you have submitted you Bill of Discharge
If you wish / are authorised to declare your goods to free circulation based on the imported goods under Article 86(3) of the Union Customs Code use CPC 51 00 F44.

CPC 51 00 F44new CPC notes – goods entered to IP for discharge under Article 86(3)

CPC note heading / CPC note text
Goods Covered / Goods beingenteredtoInward Processing (IP) byeither:
theholderofafull or authorisation involving more than one Member Stateissuedundereconomic code 1, 5, 6, 7, 8
or
Goodsbeingenteredwithoutpaymentofcustomsduty,equivalentgoodshaving previouslybeenexportedusingpriorexportequivalence/priorimportequivalence.
Where the processed products will be declared to free circulation using Article 86(3) of the Union Customs Code as the basis for valuation (rate, value, quantity of the imported goods).
Status of goods / Not in Free Circulation
Specific Fields in the declaration/notes on completion / Box1:entercodeIMfollowedby A,D,Y orZasappropriate.
Box44enter:
DocumentidentifierC601
IPauthorisationnumber
Donotenteradocumentstatuscode
AuthorisationholdersreferencenumberasaGEN45AIstatement(ifany)
Entertheappropriatelicencedetails–seeAppendixC10
Details of the guarantee reference number as an AI statement - GNRTR
Details of the guarantee ie name ,address of guarantor as an AI statement - GNRTR
Details of the AEO approval number to qualify for waiver of guarantee as an AI statement \details of waiver if not AEO - GNRTR
Box47: Enter‘PDY’asthelast3charactersintheratecolumntoallowCHIEFtocalculate thepotentialduty.
WherethegoodsaresubjecttoClimateChangeLevy(tax typecode990)ataxlinemust becompletedbutnolevyispayable.Useoverridecode“EXD”inBox47c andenterthe amountpayableas0.00inBox47d
Box47e: ifsecurityisnotrequireddonotenteranMPcode.
Security required / Securitymayberequiredtoensureconditionsandobligationsofthereliefwillbemet. The supervisingofficewillstateintheauthorisation ornotifytheholderifsecurityis required.Ifsecurityisrequiredavaluationstatementwillbeneeded,seetheTariffVolume 1Part14forfurtherinformation.
Whererequired,securitymustbeby cashdepositorguarantee.InBox47enterMPcodeN, P, Q, S, T, UorVasappropriate.
Additional information / Box44: enterthefollowingstatementsinthe additionalinformation box:
DeclarethefullnameandaddressofthesupervisingCustomsOfficeasaSPOFFstatement
VAT / NoimportVATisdue onentriesmadetothis CPC
PostClearanceAction / EnquiriesmustbeaddressedtothesupervisingofficewhoseaddressisinBox44
Notes / This CPC must not be used for goods entered under an authorisation by declaration (see CPC 51 00 001)
Use of this CPC constitutes a declaration by the importer that the conditions laid down in CouncilRegulation 950/2013andCommissionRegulations 2015/2446 and 2015/2447... Anyone who gives untrue information about goods imported under these arrangements may be liable to penalties under the Customs and Excise Management Act 1979.
Agents must have prior written approval from the authorisation holder to enter goods to IP on their behalf and ensure a copy of the entry is returned to the holder.
Where the goods to be entered are liable to Climate Change Levy (tax type code 990) a tax line must be completed but no levy is payable. Use override code “EXD” in Box 47c and enter the amount payable as 0.00 in Box 47d.
IP allows relief from customs duty, specific customs duty, anti-dumping duty and countervailing duty.
Traders are reminded that failure to submit an Inward Processing Bill of Discharge (form TBA) by the due date to their supervising office may lead to having to pay any suspended duty and VAT. Any guarantee will not be released until you have submitted you Bill of Discharge
If you wish / are authorised to declare your goods to free circulation based on the imported goods under Article 85 of the Union Customs Code use CPC 51 00 000.

CPC 51 11 002 (ex 51 00 002)

CPC note heading / CPC note text
Goods covered / Goods importedfromoutsidethe Union,withoutpaymentofcustomsdutyorVAT, under priorexportequivalence(EX/IM)
Notice / 3001
Specific Fields in the declaration/notes on completion / Box1EntercodeIMfollowedby A,D,Y orZasappropriate.
Box44EnterdocumentidentifierC601,
IPauthorisationnumber
Donotenteradocumentstatuscode
AuthorisationholdersreferencenumberasaGEN45AIstatement(ifany)
Entertheappropriatelicencedetails–seeAppendixC11
Box46Statisticalvalue
Box47Enter‘PDY’asthelast3charactersintheratecolumntoallowCHIEFtocalculate thepotentialduty. WherethegoodsaresubjecttoClimateChangeLevy(tax typecode990)ataxlinemust becompletedbutnolevyispayable.
Useoverridecode“EXD”inBox47c andenterthe amountpayableas0.00inBox47d
Box47eIfsecurityisnotrequireddonotenteranMPcode
Additional documents required / Forgoodsimportedtoreplaceequivalentgoodspreviouslyexported(EX/IM) 3copiesi.e. theoriginalandcopies1and2offormINF5stampedby customswheretheexporttook placemustbepresented.Ifthequantitybeingimportedismorethanthequantityshown ontheINF5,theexcessbalancecanbeenteredtofreecirculation(withpaymentofduty) ormaybeenteredtoanotherauthorisedrelief.Iftheexcessbalanceistobeenteredto IP,CPC5100000shouldbeused.
Additional information / Box44–enterthefollowingstatementsintheadditionalinformation box;
DeclarethefullnameandaddressofthesupervisingCustomsOfficeasaSPOFFstatement
VAT / NoimportVATisdue onentriesmadetothisCPC
PostClearanceAction / EnquiriesmustbeaddressedtothesupervisingofficewhoseaddressisinBox44
Notes / 9.1Agentsmusthavepriorwrittenapprovalfromtheauthorisationholdertoentergoods toIPontheirbehalfandensureacopyoftheentryisreturnedtotheholder.
9.2ThisCPCmustnotbeusedforgoodsenteredunderanauthorisation by declaration (seeCPC 5100001)suspensioninanother MemberState (see5154000)
9.3UseofthisCPCconstitutesadeclarationby theimporterthattheconditionslaiddown inCouncilRegulation 950/13andCommissionRegulation2446/15 and 2447/15aremet. Anyonewho givesuntrueinformation aboutgoodsimportedunderthesearrangementsmaybeliable topenaltiesundertheCustomsExciseManagementAct1979.

4. Testing of new and amended CPCs.

The 40 51 and 51 00 CPCs will be available shortly on the CHIEF HMUT system to permit trader testing.

Issued on 21 January 2016by Customs Directorate, HMRC.

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