Inward processing: records and re-export
Yes. A UK manufacturer can use authorised inward processing for Chinese components processed and re-exported, suspending Customs Duty and import VAT. It involves stock records and a bill of discharge, alongside the export paperwork. Coordinate factory batch documents with Cambridge China Bridge.
Decide whether the production route fits
Inward processing suspends Customs Duty and import VAT on imports from outside the UK. Map the Chinese components, the UK processing operation and the intended export destination before ordering.
Our procedure code guide explains declaration codes. This guide focuses on the records and closure work behind the relief.
Agree the authorisation route before shipping
Authorisation must be in place before using the procedure. Full authorisation supports regular use. Authorisation by declaration suits occasional imports processed entirely in the UK, subject to eligibility restrictions; it requires security covering the suspended duty and import VAT.
Ask your customs adviser to confirm the route and security arrangements before booking transport. Prepare a processing description, expected output, yield calculation, proposed timescale and subcontractor details for discussion. For shipment sequencing, see exporting before replacement components arrive.
Build a stock account that can be reconciled
Keep records of goods under the authorisation. Where yield calculations sit outside the main records, HMRC requires a cross-reference. Build a linked account from import entry and factory batch through material issues, finished output, remaining stock and export evidence.
Record rejects, scrap and unexplained differences separately for review. Reconcile physical stock with the account before preparing discharge paperwork. Agree consistent batch labels with the supplier using our Chinese supplier traceability guide.
Close the procedure and submit the discharge
Export paperwork and the bill of discharge serve different purposes. For both full authorisation and authorisation by declaration, HMRC requires the bill of discharge no later than 30 days after the discharge period ends.
Set reminders for the authorised discharge period and the subsequent filing deadline. Ask your agent for declaration evidence and reconcile it against the stock account. Our UK customs clearance guide helps organise the declaration handoff.
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Deal with stock that will stay in the UK
If processed goods remain in the UK, Customs Duty and import VAT may become payable. Discuss the customs treatment before diverting an export order to a UK customer. Use our import duty and VAT guide for the ordinary import-tax background.
Assign named owners for the stock reconciliation and discharge submission. Cambridge China Bridge’s staff in China can coordinate component descriptions and batch paperwork with factories; agree the UK customs responsibilities separately.
Frequently asked questions
Can Chinese components qualify for inward processing?
Yes. Authorised inward processing can suspend Customs Duty and import VAT on goods imported from outside the UK for processing and re-export.
Do regular imports need full authorisation?
Full authorisation supports regular use. Ask your customs adviser to confirm the application scope before shipments begin.
Is exporting the finished product enough?
You must also submit the bill of discharge. HMRC’s deadline is no later than 30 days after the discharge period ends.
What stock records should I prepare?
Link import entries and batches to production, output, remaining stock and export evidence. Keep yield calculations cross-referenced to the main records.