Selling authorised use imports: who owes duty?
Diverting goods from authorised use while under customs supervision triggers duty when supervision is broken or a condition is breached. The original authorisation holder retains liability for diversion; valuation uses the goods’ import value, excluding later additions. Discuss a proposed change with Cambridge China Bridge.
Check the authorisation before changing the order
This guide concerns imports into Great Britain. Before reselling Chinese stock or changing its intended use, retrieve the authorisation and match it to the affected goods. Check the prescribed use and supervision period.
The existing customs procedure code guide explains how to read the entry. Here, the practical question is what happens when the intended use changes after import.
Identify when the debt arose
HMRC gives selling goods instead of putting them to their intended use as an example of diversion. Debt arises when goods leave customs supervision or an authorised use obligation or condition is breached.
If a sale or diversion has already happened, gather the dispatch date, sales paperwork and stock movements. Ask the customs agent and HMRC supervising office to assess the event. Do not use the date someone discovered the problem as a substitute for the actual timeline.
Establish who still carries the liability
The original authorisation holder retains liability if goods are sold to a non-authorised trader or diverted from their prescribed use. Passing ownership to a customer therefore does not itself remove that exposure.
For a planned transfer, HMRC can approve a transfer of rights and obligations. Its guidance requires agreement on the responsibilities and debt, an application and approval before transfer. Ask which obligations are covered and what evidence closes your involvement. The importer of record guide explains the wider declaration roles.
Reconstruct the import value
The debt calculation uses the value when the goods were imported. Later goods or value added are excluded.
Retrieve the original valuation workings rather than starting with the resale invoice. Keep the factory invoice, freight breakdown and any tooling allocation together. The customs valuation guide explains what belongs in the original customs value.
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Give your customs agent a usable case file
Assemble the authorisation, import entry, original valuation, affected stock references and a dated account of the proposed or completed change. Separate untouched stock from goods already dispatched or used differently.
Ask for a written assessment of the debt trigger, liable party, valuation basis and next action with HMRC. Cambridge China Bridge’s staff in China can help gather factory invoices and production records for that review.
Frequently asked questions
Can I sell goods imported under authorised use?
Selling them instead of putting them to the prescribed use can trigger duty. Check the authorisation and discuss any planned transfer with HMRC before releasing the stock.
Does the buyer take over my customs debt?
A sale alone does not remove the original authorisation holder’s liability for diversion. Check any HMRC-approved transfer and exactly which obligations it covers.
Is duty based on the resale price?
HMRC uses the goods’ value when imported, excluding goods or value added afterwards. Retrieve the original customs valuation workings.
What should I send my customs agent after diversion?
Send the authorisation, import entry, valuation workings, affected stock details, sales or usage records and a dated timeline. Ask for a written assessment and next action with HMRC.