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What you can do with goods in a Free Zone

Please note that Free Zones will not be available within the UK with effect from July 2012.


If you wish to obtain benefits similar to those under the Free Zone arrangements you are advised to consider customs warehousing arrangements.


There are four types of operation you can carry out in a Free Zone: storage, handling, processing and destruction.


You can store goods in a Free Zone for an unlimited time (although time limits may apply to some CAP goods).


You can do whatever minor handling is required to keep the goods in good condition or to prepare them for sale. The tasks (known as 'usual forms of handling') include repairing damage or removing damaged components, reconstruction after transport, stocktaking, conservation (of food goods), and packing or repacking. If you're not sure whether what you want to do is considered a 'usual form of handling', you should seek advice from Customs.


Subject to specific authorisation by HM Revenue & Customs (HMRC) you can process goods. This includes both manufacture and assembly. You need authorisation to process non-Community goods under Inward Processing Relief for goods that will be re-exported or under Processing under Customs Control (PCC) to process non-Community goods for the Community market. In all circumstances involving processing work you must consult with the Free-Zone manager and HMRC supervising office before you undertake such work.


You can destroy unwanted goods provided Customs are notified in advance and stock records are updated as required.


Information Sheet INF 8/C 1247 may be used to assess the customs debt applicable to goods before usual forms of handling have been carried out in customs warehouses or Free Zones.

( linda )13 Dec,2011

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