Understanding End-Use (Authorised Use) Customs Procedure

End-use (Authorised Use) is a customs procedure and it is one of the UK/EU Special Procedure.

Under the end-use procedure, traders can import certain goods at a reduced or zero rate of duty. To benefit from this relief, traders must use the goods for an authorised purpose or specific context.

UK 1st October 2024 update of Eligible Goods

What is the difference between End-Use and Authorised Use?

‘End Use’ is the EU terminology. In the UK, authorities changed the term to ‘Authorised Use’ post-Brexit, effective since 1 January 2021. However, most UK traders are still calling the customs procedure: “End Use”.

What goods are eligible for End-Use / Authorised Use?

The customs Tariff lists eligible goods that impact certain sectors:

• Shipwork goods
• Aircraft and parts
• Hydrocarbon oil
• Marine propulsion engines
• Military equipment
• Fish
• Cheese

Applicability criteria

• You must hold an authorisation from customs authorities.
• Your goods must eligible for End Use/Authorised Use.
• You must put your goods to their prescribed use within the agreed time limit.
• You’ll need a guarantee.
• You must meet the End-Use ) Authorised Use compliance obligations.

Types of authorisations

• Full authorisation: If you want to receive goods under end-use/authorised use regularly.
• Simplified/Authorisation by declaration: A single shipment authorisation made at the time of import via the import declaration.
• Retrospective authorisation: available under certain conditions.
• Authorisation covering Northern Ireland and EU (UK only).
• EU cross-border authorisation if imported goods will be processed or travel through more than one EU member state (EU only).

Claiming End Use relief

At the time of importation via the import declaration.

Compliance requirements

• You must put the goods to their prescribed use within the agreed time limit.
• You must demonstrate that you have applied the prescribed treatment to the goods.
• You must keep adequate records in an approved form.
• Customs supervision must be possible at all times.

Discharge of the End-Use /Authorised Use

Goods remain under end-use provisions from the time of import until they are discharged. The End Use procedure is discharged when your goods are either:

• Put to a prescribed use as listed in the tariff and within the agreed time limit stated in your authorisation.
• Put to another customs procedure.
• Destroyed under customs supervision.
• Exported outside the customs territory.
• You can also transfer your liability by transferring your goods to another authorised end-use trader
• Put to free circulation subject to the payment of duty. 

Point of attention

You must use the goods only for the purposes specified in the authorisation.

Alegrant insights

Based on our experience, traders often make the same mistakes with the management of their End-Use procedure. If you notice or suspect any of the following, it’s important to take action:

• Your goods and processing meet the eligibility criteria but you do not use End Use/Authorised Use customs procedure. You are missing on saving opportunities.
• You have lost/misplaced inventory containing imported goods that have been declared to Authorised Use at import.
• You have imported goods declared under Authorised Used but have used them for a different use than the authorised one.
• You have imported Authorised Used goods, but they have not yet been used and have exceeded their authorisation deadline.

References

• Taxation (Cross-border Trade) Act 2018 s3 
• The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 Chapter 4
• Statutory guidance – Reference documents for The Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020.
• Statutory guidance: Reference document for authorised use: eligible goods and authorised uses.