What is “End-use” Relief? How to claim End-Use Relief on imports?

The goods imported in the EU and circulated are subject to various kinds of rules and regulations. There are various kinds of laws that govern the taxation of such goods and how much VAT is to be charged.

However, there are certain goods that enjoy a reduced rate of customs or a zero rate of customs when used in the EU for a specific or limited time period for a specific purpose. It must be noted that end-use relief is not applicable to VAT and excise duty.

What kinds of goods are considered as eligible goods for this?

Not all kinds of goods that are imported are a part of the end-use relief claim program. There is a specific criterion for this along with that these goods should be used for a specific purpose within a given time period in the EU.

Here are some examples of the goods that are eligible for end-use relief:

• aircraft and parts
• shipwork goods
• marine propulsion engines
• military equipment
• hydrocarbon oil
• casein (used in the cheese industry)
• cheese
• fish

However, if you are confused about which good falls under the “eligible category” for end-use relief, then you can refer to the Trade Tariff, which gives the entire list of goods that are covered under the end-use relief claim section.

How does it work?

If you import goods and think that such goods may be eligible for end-use relief claims, then the first thing you need to do is check the trade tariff to know if your goods qualify for the end-use relief. The trade tariff and the footnotes in the tariff will let you know if your goods qualify for the end-use relief claims.

If the following stands true for you, then you’ll be able to claim your relief:

• You’re authorized by HMRC.
• The goods so imported by you are eligible for end-use.
• You use your goods for a specific use for a given/certain time.

What does end-use relief claim actually mean?

End-use relief claim is actually a good way of cutting importation costs. However, this scheme or these claims are only eligible for the goods to be imported and circulated in the EU. Other than this, if the product is eligible then there are two things that will happen:

• The goods that are imported will be imported with a lesser amount of importation costs, or
• There will be no importation costs for these products or goods at all.

However, it must be known, that end-use relief claim is only applicable for the import charges and not for other kinds of taxations such as VAT, Excise duties, etc.

How to claim End-Use Relief on imports?

You can be eligible to claim your relief on the various goods that you import by filling out the Single Administrative Document (SAD) for import and export form when you import the goods or at the time of importing such goods.

While claiming end-use relief, you must provide the following:

• A description of your goods.
• A customs procedure code.
• A preference code.
• The end-use authorization number.

In case of you importing goods via the postal system, here is what your post or package should be marked with:

• The end-use authorization number.
• VAT number
• Commodity code.

What is a commodity code?

All goods that are being imported should be marked with a 10-digit commodity code. Without this, you will not be able to avail any kind of relief or claim any kind of relief on the goods.

What is customs preference code?

Customs preference code is a 3-digit number which is used to identify whether or not the goods are eligible for a reduction or not. Customs preference code is entered in box 36 of the SAD application.

What is a Customs procedure code?

A customs procedure code is a 7-digit number that is required to ascertain and know what kinds of procedures will be applicable to the particular goods. The codes marked on the goods are used to find out what kind of procedures will be applicable and is marked in box 36 of the SAD application.

All other information regarding customs codes and other codes can be found in volume 3 of the Trade Tariff.

How to apply for end-use authorization?

There are basically four types of end-use authorization. Before you apply for this type of authorization can be accepted, or you can only apply for end-use authorization only when you are authorized with the HMRC.

Also, authorizations are issued only to those who are importing the goods or will import the goods.

The four basic types of authorization:

• retrospective authorization
• end-use authorization by declaration
• authorization for goods or movements where the goods will be moving between more than one state
• end-use authorization within the UK

What are tariff quotas?

Tariff quotas are those quotas are the discounts or the reductions that are offered to the imported goods. However, it must be remembered that some quotas are only applicable while the imported goods are put to a specific use.

You can find out about these rates and the use of such goods with the help of the details about the quotas. Also, you should add your authorization number when availing such tariffs.

If there are any questions or queries about your tariffs and how to use them or for any other related matter, here is the email address you can write at tariff.management@hmrc.gsi.gov.uk.

Are there places I can contact for help?

Yes, there are some places where you can either call or write for help. Here they are:

• HMRC Central Tariff Quota Unit Telephone: 01702 366 787
• HMRC Tariff Classification Service Tariff Classification Service
• Food Standards Agency Imported Food Helpline Telephone: 020 7276 8018

About the author

Sumit Agarwal
Sumit Agarwal (ACMA ACA India), the Managing partner of dns accountants is a highly respected accountant with expertise in helping owner-managed businesses.