Outward Processing Relief

If the University sends equipment or other goods abroad for repair, servicing or alteration there is a risk that the University may have to pay import VAT and duty when the items are returned to the UK, on the full value of the goods. 

To prevent this we are now registered for Outward Processing Relief (OPR).  This means that import VAT and duty will only be payable on the “added value” of the goods, usually the cost of the service or repair (including shipping cost).  

For repairs under warranty there is no added value so there will be no VAT charged.  For replacements under warranty however, there will be VAT on the full value.

To use the relief:

• Notify the Tax Team providing details including commodity code (first 4 digits), description and value of the goods to be exported.
   
• The Tax Team will check the commodity is one already covered by the authorisation (see OPR commodity code list). If not, it can usually be added within a few days. Please do check it yourself beforehand if you wish.
   
• On export, book the shipping with the freight forwarder using reason code "Repair" so it is flagged as an OPR export.
   
• When the shipment has been collected, email the freight forwarder with the AWB number in the subject line, the correct Customs Procedure Code (CPC) starting with 21 00, and quoting our Customs Declaration Service (CDS) OPR authorisation number GBOPO12550673000020240918092930.
   
• On reimport, book the shipping using reason code “Return after Repair”.  Email the freight forwarder confirming this import is under OPR, sending import details, as well as our OPR authorisation number, the reimport CPC code and other details.

  See detailed export/import instructions on sidebar for further information.

• Inform the tax team when the item is received
   
• Retain all documentation in case of an HMRC enquiry