Simplified Inward Processing Relief (Suspension)

The HM Revenue and Customs office dealing with Inward Processing Relief (IPR) Suspension using a Simplified Authorization is based at the National Import Reliefs Unit, Killyhevlin Industrial Estate, Enniskillen, Co. Fermanah, N. Ireland, BT74 4EJ. They can be contacted by phone (028 6632 2298) or more conveniently by e-mail on niru@hmrc.gsi.gov.uk.

IPR Suspension is a method that allows goods to be imported for processing into the UK without Duty or any other taxes being charged, on condition that these goods are then either re-exported within six months from their date of entry, or subject to one of the other eligible methods of disposal as outlined in Notice 221A.

Any goods imported under IPR Simplified Authorization must use Customs Procedure Code (CPC) 510001 in box 37 of the C88 and detail in box 44 that the goods have been imported under IPR Suspension. It is very important that a copy of the C88 and E2 are obtained from the clearance agent for any clearance completed under CPC 510001.

If the goods are re-exported, then the freight forwarder completing the export entry paperwork will need to know that these goods are being exported under CPC 315100 and, in addition, will require the EPU number (usually 3 digits) and the Entry Number (usually 6 digits followed by a number) and the Date of Entry, otherwise Revenue and Customs will not allow the export entry paperwork to be completed, which means that the shipment cannot leave the UK.

This is the reason why a copy of the C88 and E2 are required from the clearance agent at the time of import, especially since most clearance agents only keep these documents within easy reach for 2-3 months at best. After this time, the E2 is usually filed in archives, but the C88 may not be.

Once the goods have been exported, or become subject to another eligible method of disposal, a Bill of Discharge (C99 Form) must be completed within 30 days of the throughput period and sent to NIRU in Enniskillen. A copy of this form can be downloaded from the Revenue and Customs website at www.hmrc.gov.uk.

If the goods have been exported then a copy of the export clearance C88 is required to provide the Export Entry Number needed to complete the C99. Sometimes, especially with courier shipments, this cannot be supplied by the shipping agency because the goods may have been shipped as part of a combined shipment.

It might be useful, before you arrange for IPR Suspension goods to be exported, to consider the method of shipment that would best obtain for you the export paperwork required to complete the Revenue and Customs Bill of Discharge.

Please note that failure to supply the C99 within the time limit will mean that the customs duty and taxes that were suspended on import, and any compensatory interest which may also be applicable, will be demanded and must be paid immediately.

The system of Inward Processing Relief (Drawback) using a Simplified Authorisation, was discontinued on 31st March 2010 and IPR Drawback can now only be used under a fully authorized system agreed beforehand by HM Revenue and Customs.

This system is valid as of 30th June 2010, but it may change, so it is important that a check is kept on the Revenue and Customs Website and for any amendments to Notice 221A.

Maria Narancic from Point to Point Export Services is an independent international trade adviser who assists organisations world wide with their international trade projects, documentation, Documentary Credits and import/export training.  She is based in the United Kingdom.  If you require any further assistance with the matters mentioned above, please do contact us by e-mail on info@point-point.com or check out other International Trade articles on the Point to Point Export Services website at www.point-point.com
 

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