compensating products

You will need to provide details of these compensating products including the quantity produced.

Secondary compensating products are not regarded as waste or scrap.

The processor must then send the form to the importer of the compensating products.

If, however, such charges apply to the compensating products, they must be included in the duty calculations.

You must also indicate how the exported goods will be identified in the imported compensating products.

The duty rate applicable is the rate which applies to the compensating products.

In such cases, you may claim duty relief on the quantity of equivalent goods used to produce the compensating products.

Customs value of compensating products based on the built up value:

Compensating products: Re-imported products made from the goods you exported for process.

It is used to calculate the amount of duty relief you can claim when you import your compensating products.

Compensating products: Products obtained from processing the imported goods.

This section explains what to do when you import compensating products using OPR.

You can buy back and re-import the compensating products, and still claim relief from duty on the exported goods.

Any excise duty due on OPR compensating products must be paid in full at importation.

In theory, where there is a duty advantage obtainable on the compensating products, any process can be undertaken on any type of goods.

Where this is not practical, the processor must be able to show by documentary evidence that the imported goods have been used to produce the compensating products.

Compensating products or replacements must be entered for free circulation by, or on behalf of, the holder of the authorisation.

Under this method duty is charged on the costs of processing the exported goods, and transporting the compensating products back to the EC.

When you declare the compensating products to free circulation, VAT is due on the duty paid value of the products.

If you are importing two or more types of compensating products resulting from the process, you must show a separate calculation for each type of product.

(b) probable customs office of entry: the port or place where you will present the import declarations for your compensating products or replacement goods.

Secondary compensating products (SCP)

To qualify, traders must prove to HMRC that the exported goods are actually used to produce the compensating products.

The length of time required to export goods under OPR, process them and declare the compensating products to free circulation is known as the "throughput period".

The exported goods may also be transferred between several processors in different countries abroad, provided that they can still be identified when the compensating products are re-imported.