Inward processing for production consumables
Yes. Inward processing can cover imported production accessories used up during processing without becoming part of the finished goods. Eligibility depends on their function; fuel and lubricants have narrow exceptions. Cambridge China Bridge can help collect supplier descriptions and process evidence.
Start with the accessory's function
HMRC allows relief for production accessories that facilitate production without appearing in the re-exported goods, even when partly or entirely consumed. Examples include reaction accelerators, retarders or arresters, protective materials and goods creating the necessary processing environment.
Ask the Chinese supplier to describe what the accessory does, where it is used and whether anything remains in the finished product. Keep this explanation separate from the component list. For materials incorporated into goods, see inward processing for materials from China.
Fuel and lubricants have narrow exceptions
Ordinary production fuel and energy sources are excluded. The exception covers those needed to test manufactured products or detect faults in imported goods needing repair. Lubricants are excluded except where needed for testing, adjustment or withdrawal of manufactured products.
Do not describe machine fuel or routine maintenance oil simply as a production accessory. If claiming an exception, identify the exact test or operation, the equipment involved and how consumption is measured. Ask HMRC about an unclear use before building relief into your cost calculation.
Connect consumption to the exported output
HMRC's accessory guidance requires the processed products to be exported outside the UK to discharge duty liability on the catalyst. It also requires a rate of yield linking accessory consumption to the processed output, although the accessory is absent from that output.
Prepare a process sheet connecting imported batches, consumption and finished batches. Separate trial use, production use and remaining stock in your working records. For the wider recordkeeping workflow, see inward processing records and re-export.
Build a supplier evidence pack
Request the product identity, technical specification, batch references, proposed use and a description of any residue. Ask your UK processor to confirm the actual operation rather than relying only on the supplier's sales description.
Cambridge China Bridge's staff in China can help obtain and clarify factory information for your processor and customs adviser. For chemical purchasing, use the separate UK REACH guide alongside this customs assessment.
Frequently asked questions
Can inward processing cover consumables from China?
Yes, potentially. Production accessories may qualify even when partly or entirely consumed and absent from the finished goods. Check their actual function against HMRC's eligible uses and exclusions.
Does fuel used in manufacturing qualify?
Ordinary production fuel is excluded. The exception covers fuel or energy needed to test manufactured products or detect faults in imported goods needing repair.
Can machine lubricants qualify?
Routine machine lubrication is excluded. HMRC's exception covers lubricants needed for testing, adjustment or withdrawal of manufactured products. Confirm how your proposed use fits.
What evidence should I ask the Chinese supplier for?
Ask for the accessory's identity, specification, batch references, process function and residue description. Have your UK processor explain how consumption relates to finished output.