Scenario: Choosing the Correct Additional Procedure Code for Outward Processing

A UK company is preparing to export goods for processing overseas and seeks clarity on which additional procedure code to use. The goods in question are duty-free from all third countries, irrespective of preference or Free Trade Agreements (FTAs). The company notes that the goods fall under DE 1/10 - 2200 but is unsure whether the correct outward processing code is B53 or B54.

When reviewing the guidance notes for DE 1/11, both codes appear to reference tariff preferences.

This creates confusion, as the consignments in question do not fall under any trade preference or FTA but are instead subject to a standard 0% duty rate for all third countries.

To clarify, the company needs to determine which code, B53 or B54, is appropriate for their specific scenario.

Answer: Clarification Received NIRU

• B53 is used for "VAT Only OP" exports to third countries.
• B54 is used for "VAT Only OP" exports to special territories within the UK Customs Union.

Based on the details provided, if your goods are being sent to a third country rather than a special territory, B53 should be used, provided all other conditions are met.

For further details, please refer to the official guidance below:

• B53 Guidance
• B54 Guidance