Customs special procedures let a business import goods into Great Britain without paying Customs Duty and import VAT straight away, or pay less, while the goods are stored, processed, used temporarily or put to a specific use. Most need an authorisation from HMRC, either a full authorisation applied for in advance or a one off authorisation given when HMRC accepts the customs declaration.

What counts as a special procedure?

Every chargeable import must be declared to a customs procedure, and the procedure chosen decides when a liability to import duty arises (section 3 of TCTA 2018, the main UK customs statute). The default is release to free circulation, when duty and import VAT are paid and the goods can be sold in the UK. Section 3(4) lists the alternatives, the special customs procedures:

  • Storage, which covers customs warehousing and the Freeport customs special procedure.
  • Transit, for moving goods under customs control without paying duty at each border.
  • Inward processing, for processing or repairing imported goods.
  • Authorised use and temporary admission, for goods put to a specific use or brought in for a limited period.

Outward processing works in the opposite direction. It is an export procedure under section 36 of TCTA 2018 that reduces the duty charged when goods sent abroad for processing or repair come back. Schedule 2 of TCTA 2018 lets HMRC make regulations limiting who can declare goods to a special procedure, including conditions about where the person is established and an economic test for inward processing.

Which procedure fits which activity?

Activity Procedure Effect on Customs Duty and import VAT
Storing imported goods until you sell, process or re export them Customs warehousing Suspended while in the warehouse; payable on release to free circulation
Processing or repairing imported goods Inward processing Suspended; not payable if the goods are re exported
Using imported goods for a specific purpose that qualifies for relief Authorised use Customs Duty relieved if the goods are put to the authorised use
Bringing goods in for a limited time, for example for an event or exhibition Temporary admission Suspended while the goods are in the UK and then re exported
Sending UK goods abroad for processing or repair Outward processing Duty and import VAT reduced when the goods come back

HMRC’s guidance on authorisation by declaration summarises the procedures this way. Temporary admission suspends duty and import VAT for goods in the UK temporarily for a specific use, usually for up to 24 months depending on the goods, but the goods cannot be processed, although maintenance and repair are allowed where necessary. Inward processing suspends both while goods are processed, with the charges becoming payable only if the goods go onto the UK market. Authorised use relieves Customs Duty, which becomes payable if the goods are not put to the authorised use. Outward processing reduces both when repaired goods return.

How do you get authorised?

There are several routes, and the right one depends on how often you will use the procedure.

Full authorisation

Regular users apply online for a full authorisation before they start. HMRC’s guidance asks for at least one month for authorised use and temporary admission, at least 30 days for outward processing and at least 2 months for a customs warehouse. Applicants for authorised use and temporary admission must be financially solvent, have a good customs compliance history and keep appropriate records. You will normally need an EORI number, commodity codes for the goods and details of where the records and goods will be held. Separate applications are needed for Great Britain and Northern Ireland.

Authorisation by declaration

If you only need a procedure occasionally, the customs declaration itself can act as the authorisation. HMRC allows this up to 10 times in a 12 month period for goods worth up to £500,000 per consignment, although these limits do not apply to temporary admission. You normally have to provide a refundable security deposit or guarantee for the full duty, which is returned when the procedure ends. For outward processing no security is needed. Authorisation by declaration cannot be used for authorised use if you are using simplified import declarations, equivalence, or goods subject to anti dumping duty.

Retrospective authorisation

HMRC can backdate a full authorisation in exceptional circumstances, but only if you have not had a retrospective authorisation in the previous 3 years. For outward processing the backdating is limited to 12 months before the application, or 3 months for sensitive goods, and lack of knowledge alone is not a reasonable ground.

Do you need a customs guarantee?

Because duty is suspended, HMRC often wants security. Under authorisation by declaration you will normally need a refundable guarantee for the full amount of duties. HMRC says that if you obtain a prior authorisation in Great Britain instead, in most cases you will not need a guarantee. Warehousekeepers need one unless they are an Authorised Economic Operator or can meet the Authorised Economic Operator conditions.

How are special procedures ended?

A procedure is discharged when the goods leave it, for example by re export, release to free circulation, destruction under supervision or entry to another special procedure. Customs warehousing can be discharged by declaring goods to inward processing, temporary admission or authorised use. When goods are finally released to free circulation, import VAT becomes due, and VAT registered businesses can choose postponed VAT accounting on the declaration that removes them from customs warehousing, inward processing, temporary admission, end use or outward processing.

If you want someone else to finish the procedure, holders of inward processing, outward processing, authorised use, temporary admission and Freeport customs authorisations can transfer some or all of the rights and obligations, after agreeing who is responsible for any customs debt.

How might a business use more than one procedure?

Illustration only. A UK engineering company imports components from Japan. It stores them in a customs warehouse with duty suspended until production needs them. When a batch is needed, it is declared from the warehouse to inward processing, assembled into machines and exported to customers in Canada, so no UK duty or import VAT is ever paid on the components. A few machines are later sent back to Japan for a warranty repair under outward processing, and when they return the company claims relief rather than paying duty on their full value.

Where do agents and intermediaries fit in?

Many importers use a customs agent to make declarations. If you do, tell the agent which special procedure you want, whether you are relying on authorisation by declaration, and how the security will be provided, for example from your own or the agent’s duty deferment account. The type of representation decides who is liable for any debt. Note that freight forwarders, express operators and customs agents cannot apply for an outward processing authorisation themselves.

What mistakes cause problems?

  • Using authorisation by declaration more than 10 times in 12 months, or above the £500,000 consignment limit, instead of applying for a full authorisation.
  • Declaring goods to the wrong procedure, such as carrying out real processing in a customs warehouse, where only usual forms of handling are allowed.
  • Getting the commodity code wrong, which affects both the duty suspended and whether the authorisation covers the goods.
  • Not keeping records that link imports to the goods discharged, which can turn a suspension into a duty bill.
  • Assuming the same rules apply in Northern Ireland, where imports are subject to the Union Customs Code.

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Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 19 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.