Can Freeport machinery stay duty suspended?
Storage can qualify for duty suspension under the Freeport customs special procedure. Using imported machinery to run your business or materials to build your premises requires a different customs procedure first, even inside the customs site. Cambridge China Bridge can help prepare the factory paperwork for your customs agent.
Check the customs site and authorisation
A Freeport address alone does not qualify. The goods must be kept in a Freeport customs site, and the business must be authorised before declaring them to the Freeport customs special procedure. Under that procedure, customs duty and import VAT remain suspended while the goods remain under it.
Before ordering, ask the customs site operator to confirm the premises covered and discuss the goods and intended activities with your customs agent. Describe whether the shipment is stock awaiting sale, machinery for your production line, or materials for work on your premises.
Storage is different from operational use
HMRC permits storage, including usual forms of handling, processing such as repair, and incorporation into processed goods under the Freeport customs special procedure. It requires a different customs procedure before other uses, including on-site consumption involving capital goods, construction materials or equipment used to process goods.
For your purchasing plan, distinguish a machine held as stock from a machine operating your production line. Likewise, distinguish building panels held for sale from panels used to construct your workshop. Remaining inside the customs site does not preserve Freeport suspension once the goods are put to those operational uses.
Arrange customs release before use
Ask your customs agent to identify and complete the appropriate change of procedure before operational use. If the goods are declared into free circulation, customs duty and VAT must be accounted for beforehand. Another procedure must be suitable for the intended activity; do not assume transferring the goods automatically preserves suspension.
Make customs confirmation a hold point in the installation programme. Ask for the declaration and release confirmation identifying the relevant machine or material batch before authorising use. Our UK customs clearance guide explains the general clearance process.
Separate stock from equipment for your premises
The customs site operator must keep records of all goods in the customs site, and your business must provide enough information to make those records accurate and complete. For a mixed shipment, give the agent and operator a clear item-by-item description of the intended use.
Ask the factory to distinguish machinery serial references and material batches on the packing list. Keep stored stock separately identifiable from goods cleared for operational use, and reconcile the release paperwork with your inventory. Use our customs documents checklist for the shipment paperwork.
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Brief the supplier and installation team
Write the intended use into the purchasing brief and tell the installation team who can authorise the start of work. Agree how a change from resale stock to your own equipment will be flagged before anyone uses it. If the procedure treatment is unclear, ask the customs agent to resolve it with HMRC before work starts.
For building products, use our construction materials guide to prepare the specification and supporting evidence. Cambridge China Bridge’s staff in China can request matching factory descriptions, batch references and packing records so your customs agent can assess the actual shipment.
Frequently asked questions
Can I run a Chinese machine duty suspended in a Freeport?
Not under the Freeport customs special procedure when using it as your operational equipment. HMRC requires a different customs procedure before that use, even inside the customs site.
Can building materials stay duty suspended until installation?
Storage can qualify under the Freeport customs special procedure. Before using the materials to build your premises, place them under an appropriate different customs procedure.
Does a Freeport address automatically suspend import duty?
No. The goods must be in a Freeport customs site and declared to the Freeport customs special procedure by an authorised business.
Must I pay duty if the machinery never leaves the site?
Remaining on site does not preserve Freeport suspension for operational use. Change procedure before use; if declaring into free circulation, account for customs duty and VAT beforehand.