Special Procedures
Special procedures such as transit, transshipment, warehousing, free zones, temporary admission and inward or outward processing are tested through authorisation conditions, time limits, guarantees and compensating products. They suspend or relieve duty but do not remove customs control.
Procedure logic
- Transit: goods move under customs control from one office to another, normally with a guarantee and time limit; the procedure ends when goods are presented at destination.
- Customs warehousing: duty-unpaid goods are stored without payment; records must show receipts, removals and stock.
- Free zones: goods may be stored, handled or processed; duty arises on domestic entry.
- Temporary admission: relief for goods re-exported unchanged; ATA Carnets simplify this for exhibitions, samples and professional equipment.
- Inward processing: imported inputs are processed and re-exported; relief applies to the imported goods or compensating products.
- Outward processing: domestic goods are exported for processing and returned with relief on the value added.
Worked example
A garment maker imports fabric under inward processing and exports shirts within the authorised period. Duty on the fabric is relieved because the compensating products are re-exported. If 5 percent of the fabric is scrapped and not re-exported, duty may be charged on the scrapped quantity, depending on the authorisation and national rules.
Traps
Confusing suspension with drawback; treating ATA as a licence; missing re-export deadlines; ignoring by-products and scrap; assuming authorisation can be transferred without approval.