Businesses in the UK that need to import goods under special customs procedures – but don’t hold an existing authorisation – can now use a simplified process known as Authorisation by Declaration (AbD). The scheme provides temporary customs relief, easing import duties and VAT under certain conditions. But the option comes with restrictions, and government guidance warns it’s best suited to occasional or one-off use. AbD functions as a one-off authorisation tied to a single customs declaration. It gives businesses temporary access to customs special procedures – such as inward processing, authorised use, and temporary admission – allowing them to suspend duties while goods are stored, processed, or used temporarily in the UK. The simplified option is available up to 10 times per year and applies only to consignments valued under £500,000. These limits do not apply to Temporary Admission, which allows goods to be brought in for a defined period without paying duties, provided they are not altered during their stay. While AbD can offer valuable savings, it usually requires a refundable financial guarantee covering the full amount of customs duty and VAT. The government notes that companies seeking a longer-term or more frequent use of special procedures may find it easier and cheaper to apply for prior authorisation, which in most cases removes the need for a guarantee. The Department for Business and Trade encourages businesses to carefully assess their needs. AbD is particularly useful for firms that: - Rarely use special customs procedures - Have a one-time need not covered by an existing authorisation - Prefer not to go through a formal pre-approval process Offence and Defence: How Special Procedures Work Special customs procedures are a key tool in the UK’s broader trade strategy, offering both flexibility and cost savings. They include: - Temporary Admission: Imports goods for temporary use with duties suspended. Alterations are not permitted, but repairs are allowed. - Inward Processing: Allows goods to be processed in the UK without immediate duty or VAT. Duties apply only if the goods enter the domestic market. - Authorised Use: Grants duty relief if goods are used for a specific, approved purpose. - Outward Processing: Lets companies send goods abroad for repair, with reduced duties when they are returned to the UK. To use AbD, businesses must: - Declare the appropriate procedure code on their import or export declaration - Provide a security deposit or financial guarantee - Keep clear records and submit a bill of discharge (when required) to reclaim any deposit - If using an agent to file declarations, businesses must inform them of the intention to use AbD and agree on how the guarantee will be handled. Limits and restrictions, there are several cases where AbD is not allowed. These include: - Customs warehousing - Goods subject to anti-dumping duties - Use of simplified declarations for imports - Backdated or retrospective authorisations - Use of equivalence procedures (substituting goods in processing) - Inward Processing Exemptions: AbD cannot be used for processing controlled items such as weapons, excise goods, works of art, or catalysts, among others. Companies must process their own goods and cannot outsource processing under AbD. - Outward Processing under AbD is limited to repairs only. Goods cannot be altered or further processed abroad under this scheme. - Temporary Admission also comes with conditions: goods must be used for a specific, approved purpose, not be substantially altered, and must be re-exported within a set timeframe – usually up to two years. The Authorisation by Declaration scheme offers UK businesses a flexible route to benefit from customs duty relief – but it’s not a one-size-fits-all solution. For companies with occasional or one-off needs, it presents a convenient option. However, those requiring frequent access to customs procedures, or dealing in sensitive goods, may be better served by pursuing full authorisation. Businesses are encouraged to review the full government guidance and consult with HMRC or a customs advisor to ensure compliance. https://www.gov.uk/guidance/using-a-special-procedure-without-a-prior-authorisation