You may choose where to store the goods in the authorised warehouse area, but do not stack them so closely together that they cannot be properly or safely identified, counted or examined.
You must also make sure that goods are not placed in a way that is in itself
dangerous, for example in stacks likely to collapse or blocking emergency exits. If you wish to store Community and non-Community goods in the same storage area you must be authorised to do so. You will find co-storage and common storage explained in more detail in Section 8.
5. Handling operations
5.1 What does handling mean?
While the main purpose of the customs warehousing procedure is storage, minor handling operations, known as usual forms of handling (UFH), may be allowed while the goods remain under your control. This includes the sampling of goods – refer to paragraph 1.23. However, where the operation undertaken is likely to create a secondary product the operation will not be classed as a UFH and you will need to consider an alternative relief such as Inward Processing or Processing under
5.2 Do I need to be authorised?
Yes, if you are the warehousekeeper and you wish to carry out any handling
operations on the goods in your warehouse you will need to be authorised to do so. If you deposit goods in a type A warehouse and want to carry out handling operations on your goods, you must make sure that your warehousekeeper has been authorised for the handling operations you wish to undertake.
5.3 How do I apply for authorisation?
If you wish to carry out any handling operations you must submit an application to do so in advance of the operation taking place. Retrospective applications will not be allowed. If the UFH is intended to be a “one-off” then no amendment to your
authorisation is necessary. Instead your supervising office will issue you with a letter giving details of the conditions to apply.
If the forms of handling are to be a regular feature of your business we may grant you a general authorisation. This will be shown in Box 23 of your warehouse
authorisation (form C1410). All other cases will be treated on an individual basis. The authorisation will indicate whether we require notification and what form it will take before the operation can start.
5.4 What operations can be carried out on
warehoused goods?
Usual forms of handling may be carried out to:
Ensure their preservation in good condition during storage Improve their presentation or marketable quality
Prepare them for distribution or resale
Annex 72 of Regulation EC 2454/93 (as amended) describes and lists the allowable usual forms of handling operations that can be authorised. The full list of allowable operations can be found in Section 15. If the operation you wish to undertake is not listed in Section 15, you should discuss with your supervising office whether another customs procedure, such as Inward Processing, would be more appropriate for your needs, refer to paragraph 5.9.
5.5 Usual forms of handling and Tariff
Preference goods
It should be remembered that you cannot undertake any usual forms of handling on goods (apart from stocktaking) for which you wish to claim a preferential rate of duty (using a GSP form A, EUR1 or invoice declaration) on removal of the goods from the customs warehousing procedure to free circulation.
5.6 What do I need to consider if the handling
operation alters the amount of duties payable?
In some circumstances the handling operation may increase the value and/or change the nature of the goods, which in turn affects the amount of duty payable on those goods. You may, however, request that the pre-handling details (nature, value and quantity) of the goods to be used in the calculation of any duties due, is that
applicable to the goods prior to the handling operation being undertaken. This can be done by the completion of an INF8. However, you must request all three
components (that is, nature, value and quantity), they are not individual options. Note - This does not apply to goods being held under the type D arrangements or type E using the type D arrangements because the nature, value and quantity of the goods have already been determined on entry to the customs warehousing
procedure
5.7 Using the INF8
A request to use the pre-handling details should be made by completing an INF8 form prior to the release of the goods to free circulation. This form is used to ensure that the correct duty rates are applied following handling operations in a customs warehouse. The INF8 is available in the UK as form C1247 and you can request it when the goods are declared for release to free circulation or to another customs procedure. The INF8 form can be obtained from our VAT, Excise and Customs Helpline, refer to paragraph 1.24.
5.8 Handling details required in the stock
records
You must record in the stock records the quantity and description of the goods taken into the handling operation and the quantity and description of the products resulting from the operation.
If you intend to make a request on an INF8 to use the value, quantity and nature of the goods before the operation took place these details must be entered in the stock records. Otherwise, we may refuse the application of the pre-handling details and then the particulars relating to the goods at the time of removal must be used to calculate charges.
5.9 What if I want to carry out more complex
operations in the warehouse?
You do this by entering them to: Free circulation
Inward processing providing some of the processed products are to be exported outside the Community (refer to Notice 221)
Processing under customs control (refer to Notice 237)
For excise goods, entering them to free circulation and carrying out the process within an excise warehouse
The procedure for removing goods from the customs warehousing procedure is explained in Section 10. For information on removing goods for re-export refer to Section 11.
6. Temporary removal
6.1 What is this section about?
In certain circumstances goods may be temporarily removed from the customs warehouse.
6.2 How do I apply for authorisation?
Automatic authorisation will be granted to allow you to make temporary removals on a case by case basis, which means you must give prior notification to your
supervising office.
6.3 Can I apply for temporary removal
retrospectively?
No, retrospective applications for temporary removal are not allowed.
6.4 What will my authorisation allow me to do?
Your supervising office will issue you with a letter giving details of the conditions that apply to the removal, including the form and manner of any notification that are required before the removal can take place.
6.5 What if temporary removals are a regular
feature of my business?
If temporary removals are to be a regular feature of your business you may be granted a general authorisation. The authorisation will indicate whether we require notification before the removal can take place, what form this notification will take and the specific locations to which the goods may be removed.
However, we will also not authorise repetitive temporary removals where the goods are returned to the warehouse for a few hours/days (after the three month period has expired) and temporarily removed again to the same place for the same purpose.
6.6 What are the conditions of a temporary
removal authorisation?
It is a condition of temporary removal that the goods must normally be returned to the same customs warehouse from which they were temporarily removed within 3
months from the date of removal. If you do not want the goods returned to the same warehouse but sent to another one you must seek permission from your supervising office before the goods are removed from their temporary location.
You must also tell us the destination and the purpose for the temporary removal including any usual forms of handling that you intend to undertake, refer to paragraph
6.8. You must not declare the goods to another customs procedure, for example free circulation, prior to return of the goods to the customs warehouse.
6.7 Can I extend the period of temporary
removal?
Yes, if you find more time is required than you were originally authorised for, you must apply to your supervising office setting out the reason why the extension is required. An application for extension must be made before the date of expiry of the initial three-month period. A customs debt is incurred if no application for an
extension is made before the time limit expires.
6.8 Can my goods undergo a usual form of
handling whilst temporarily removed?
Yes, provided authorisation has been granted – refer to Section 5, goods may undergo usual forms of handling while they are temporarily removed from the
customs warehouse. A list of the processes that are allowed can be found in Section 15, if the process you wish to undertake is not specifically listed in this Section you
6.9 Is security required for goods under
temporary removal?
No, in general there is no requirement to provide security to cover the goods whilst under temporary removal. However, if we think that there is an increased risk of fraud (or diversion) we may require security to cover the removal of the goods. This will however be the exception rather than the rule and will be detailed in your
authorisation.