A ship repairer imports marine engine parts. A food manufacturer brings in fish to make battered fish products. An airline maintenance shop orders aircraft components. All three may be paying the full tariff rate when the law allows a reduced or zero rate — provided the goods go to a specific use. That is what end-use relief UK rules (called authorised use by HMRC) are for.
What end-use relief UK means
HMRC describes authorised use as a customs special procedure that lets traders established in the UK pay a reduced or zero rate of customs duty on imported goods, as long as the goods are used for a specific purpose and processed within a specified period. The relief is conditional: the goods are released into free circulation at the lower rate, but the importer stays under customs supervision until the goods have actually been put to the prescribed use.
In Northern Ireland, which applies the Union Customs Code, the same procedure is referred to as end-use; NI-established traders with premises in NI and the EU can apply through the EU Customs Trader Portal.
Which goods and sectors typically use it
The relief only exists where a lower rate is tied to a defined use. HMRC names the most common sectors:
- aircraft and aircraft parts;
- ship-work, including marine propulsion engines and parts for vessels;
- the military sector;
- oil and gas industries;
- the food industry — for example cheese, fish and prawns intended for industrial processing.
The prescribed use depends on the goods. HMRC gives the example of fish imported for the industrial manufacture of battered fish. The exact list of eligible goods and authorised uses is published by HMRC, and the commodity code is what decides whether a lower end-use rate exists at all. If the classification is uncertain, check it before you plan around the relief — Easy Clearance’s practical guide to authorised use and 0% duty codes walks through typical aviation, marine and food cases.
Who can apply: the HMRC conditions
According to HMRC, to apply you must:
- be established in the UK;
- have an EORI number;
- be financially solvent;
- have a good customs compliance history;
- keep appropriate records of the goods and their use.
For a full authorisation, HMRC advises applying at least one month before you start importing. Before applying, prepare the commodity code, the intended use, where and when the goods will be processed, the yield rate, where records are kept and who else is involved in the processing. You may also need a guarantee to cover the duty and import VAT that would otherwise be due, and some goods need an import licence.
Main types of authorisation
Full authorisation. Suitable for regular imports. It allows repeated use of the procedure and access to simplified declarations.
Authorisation by declaration. Here, HMRC’s acceptance of your import declaration at the border is your authorisation. HMRC limits it to 10 uses in a rolling year and goods valued up to £500,000 for each import (CDS completion notes apply the limit per goods item). You must put the goods to use yourself, and security for customs duty and import VAT is usually required. It cannot be used with simplified declarations, for goods subject to anti-dumping duty, with equivalence, or retrospectively.
Retrospective authorisation. Available only in exceptional circumstances, after the goods have been imported, and not if you received a retrospective authorisation in the previous 3 years.
On the import declaration in the Customs Declaration Service, release to free circulation with end-use relief uses requested procedure code 44 (for example 4400), and, for a full authorisation, the authorisation number must be quoted. For a wider look at how procedure codes work, see our practical reference to customs procedure codes. If you would rather not handle the declaration yourself, a CDS-registered customs agency can prepare the UK import declaration with the correct procedure code and authorisation details.
Time limits and discharging the procedure
Goods must be put to their prescribed use within the period set in the authorisation. For a full authorisation, HMRC says this does not normally exceed one year (longer periods may apply to aircraft and ship-work); for authorisation by declaration it is six months. Extensions must be requested before the period expires.
Once the goods have been used, you tell HMRC by submitting a bill of discharge. For a full authorisation, HMRC’s guidance says it must reach the supervising office within 30 days of the end of the agreed discharge period, or by the end of the month in which the goods were discharged if that happened earlier. Under an authorisation by declaration, it is due within 30 days of discharge and can be sent through HMRC’s online service (for CDS declarations), by email or by post.
Other rules worth knowing:
- goods can only be destroyed with HMRC’s permission, notified at least five working days before;
- authorised use goods cannot simply be moved to another authorisation holder — a transfer of rights and obligations needs HMRC approval;
- re-export is possible with the supervising officer’s permission if the goods have not yet been put to use;
- records must be kept for at least 3 years after disposal of all goods held under the authorisation, or as your authorisation states.
End-use relief vs Inward Processing Relief
The two are often confused. End-use relief applies where the goods are consumed in the UK in a prescribed way — fitted into an aircraft, used to build a ship, processed into a food product. Inward Processing Relief suspends duty on goods that are processed and then, typically, exported. If your finished product leaves the UK, read our guide to Inward Processing Relief for raw materials and Easy Clearance’s article on inward processing for manufacturers importing components before choosing a procedure.
Checklist before you import under end-use
- Confirm the commodity code and that the tariff gives a reduced or zero rate for an authorised use.
- Check you are UK-established, hold an EORI number and can keep detailed records.
- Choose full authorisation or authorisation by declaration (10 uses a year, up to £500,000 per import).
- For a full authorisation, apply at least one month before the first import; check guarantee and licence needs.
- Use procedure code 44 on the import declaration (plus the authorisation number for a full authorisation).
- Track the discharge period and submit the bill of discharge on time.
- Keep records for at least 3 years after disposal of all goods.
Mini-FAQ
Is end-use relief the same as authorised use?
Yes. In Great Britain HMRC calls the procedure authorised use; in Northern Ireland, which follows the Union Customs Code, it is referred to as end-use. Both describe a reduced or zero rate of customs duty on imported goods that are put to a specific, prescribed use within a set period.
Can a business outside the UK use end-use relief?
Generally no. HMRC requires applicants to be established in the UK and to hold an EORI number, as well as to be solvent, keep appropriate records and have a good customs compliance history. HMRC’s guidance describes only a narrow exception for non-commercial imports.
What happens if the goods are not put to the authorised use?
If goods are diverted from the prescribed use, the authorisation holder becomes liable for the customs duty that was relieved. Goods can only be destroyed with HMRC’s permission, and HMRC must be told at least five working days beforehand. Re-export is possible with the supervising officer’s permission if the goods have not yet been put to their authorised use.
Sources (gov.uk): Apply to pay less duty on goods you import for specific uses; Authorised use (end-use); Completion of authorised use and discharging liability; Declare your goods to end use and completing end use. Rules can change — check the current guidance before importing.