Outward processing: UK materials made in China
Yes. Outward processing can cover UK materials sent to China to make products that return to the UK. Manufacturing needs the full authorisation route because authorisation by declaration is limited to repair. Prepare the process, yield and traceability evidence before shipment. Factory records can be coordinated by Cambridge China Bridge.
Use the manufacturing authorisation route
HMRC’s guidance expressly includes materials exported to manufacture dresses. For a manufacturing project, apply for full authorisation rather than using the repair-only declaration route. Regular outward processing requires full authorisation; HMRC says you should apply at least 30 days before exporting.
Before booking transport, ask your customs adviser to check the proposed arrangement and review the authorisation conditions with you. Start with a written description of the materials, the factory work and the products intended to return.
Describe the actual factory operations
HMRC asks for a detailed process description and the places where the planned activities will happen. General descriptions such as processing are insufficient. The application also needs descriptions and commodity codes for the exported goods and resulting products.
Ask the factory to describe cutting, machining, moulding, assembly or finishing in sequence, as applicable. Name the premises used for each operation and identify any subcontracted work. Attach drawings where they make the transformation clearer. Use our commodity code guide when preparing the goods descriptions.
Define yield with units and production records
HMRC requires the expected yield or a proposed method for establishing it. Where several materials or products are involved, the application can include a yield table or bill of materials.
Label the input and output units explicitly instead of presenting an unexplained ratio. Ask the factory to reconcile material issued, finished output, scrap, rejected products and unused material. Agree how actual production records will explain differences from the estimate. Our bill of materials guide helps organise the material breakdown.
Prove your materials became the returned goods
HMRC says your records must show that the exported goods are the same goods re-imported, or are within or part of the re-imported products. For manufacture, plan how the records will demonstrate incorporation of your materials.
Agree batch references before dispatch and carry them through the factory receipt, material issue, production and packing records. Keep photographs and material certificates alongside those records. Ask the factory to separate your materials from similar stock and flag substitutions before use.
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Review the evidence before the return shipment
Build a shipment file linking the material dispatch record, factory receipt, process description, yield reconciliation and finished packing list. Ask your customs adviser to check it before the goods leave China. Resolve unexplained material losses or broken batch references while the factory can still investigate.
Use our quality inspection guide for checking the finished goods against the agreed specification. Cambridge China Bridge’s staff in China can coordinate requests for factory records and production checks; ask them to use the same material and product references as your customs adviser.
Frequently asked questions
Can outward processing cover manufacture in China?
Yes. HMRC’s guidance includes exported materials used to manufacture products. Plan for those products to return to the UK and use the full authorisation route.
Can I use authorisation by declaration for manufacture?
No. HMRC limits that route to goods sent overseas for repair. A manufacturing project needs the full authorisation application route.
What yield information does HMRC need?
The expected yield or a method for establishing it. State input and output units clearly; a yield table or bill of materials can cover several materials or products.
How do I identify materials after manufacture?
Use linked material, batch and production records to show incorporation into the returned products. Agree the record format with the factory and your customs adviser before dispatch.