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.

If you want to use a Free Zone, the procedure depends on how you plan to operate. If you want to run a business within a Free Zone, you need authorisation from Customs and a supporting letter from the Free-Zone manager.

If you do need to apply for authorisation to run a business within a Free Zone, you should write to the Customs office for that Free Zone with the following information:

the nature of your business, and details of what you plan to do in the Free Zone (for example, any handling or processing)

the name, address and VAT number of your company, including the correct legal entity

the full names of the directors or partners

details of any associated businesses

the identity and details of any building in the Free Zone that will be used

a description of the goods involved

where the goods are from and their customs status

the methods that will be used to declare goods into the Free Zone and remove them from the Free Zone

details of the stock records that will be maintained, including any computer software that will be used

any other relevant information

ensure you have a letter from the manager of the Free Zone supporting your application

Customs officers from HM Revenue & Customs (HMRC) will send you a letter of authorisation setting out the conditions for your use of the Free Zone, including keeping the Free-Zone manager informed, providing information, keeping records up to date and ensuring employees observe customs laws. Additional authorisations are required to use the Customs Freight Simplified Procedure (CFSP) or to build inside a Free Zone.

The responsibilities of a Free-Zone operator are as follows:

accurate records must be kept of all goods entering and being removed from the Free Zone

the consignment must be examined by yourself or your agent, to ensure that the number of packages or weight and types of goods received agree with the goods described in the Free-Zone declaration

with goods in containers, you must check the identifying number of any seals and ensure they are intact

ensure that the goods are taken directly to the Free Zone stated in box 49 of the C88 (SAD) declaration, without any delay and delivered intact - the goods must be transported direct to the designated premises and entered to the Free-Zone procedure as soon as possible

provide the Free-Zone manager with a copy of the C88 (SAD) declaration (before or at the time of arrival) of the goods moving into the Free Zone

provide the Free-Zone manager with an explanation of any discrepancies that have been brought to your attention, regarding your Free-Zone stock entering or already held in the Free Zone

ensure that all duties due on any discrepancies in goods received at the Free Zone are paid, if they cannot be properly accounted for

if it is specified in your authorisation, you should notify the supervising office for your Free Zone of the arrival of the goods

to ensure that your Free-Zone authorisation is valid for the goods concerned

Anyone can apply to HMRC to have an area of land designated as a Free Zone. Whether you are successful depends on whether the Free Zone will be economically viable, whether you have local authority planning approval and various other factors. It is unlikely, for instance, that you could operate a free zone in your home.

A new Free Zone will need to be clearly defined with a map showing the boundaries of the Free Zone. The Free Zone will be set up by Statutory Instrument through Parliament for a defined time period as agreed with HMRC.

If you are approved as a Free-Zone manager, you will need to abide by the conditions and obligations listed below:

If specified in your authorisation, notify the supervising office for your Free Zone of the arrival of the goods - the supervising office will already have agreed the method of notification with you.

Ensure your Free-Zone designation is valid for the goods concerned.

Allocate to each entry the next consecutive stock number or stock numbers from the Free-Zone records stock number master list.

Enter in the Free-Zone record details of the goods actually received and check whether the quantity is more or less than the quantity declared on the Free-Zone entry.

Establish and resolve any discrepancies.

If you receive two copies of the C88 (SAD) declaration for endorsement as evidence for Inward Processing (IP) purposes, you should endorse the reverse of both copies with:

stock reference number(s)

quantities and values of the Free-Zone goods

your signature and the date

any discrepancies found between the details of the declaration and the goods actually entered to the Free Zone

You should retain one copy and send the other to the IP trader.

In cases of discrepancy (if you do not own the goods) you must inform the Free-Zone operator immediately so they can investigate what has happened and provide you with a satisfactory explanation and/or supporting evidence. Goods received in excess of the entered quantity must be regarded as dutiable and provisionally entered to the Free Zone until the matter has been resolved.

It is not necessary for you to routinely report to your supervising office all discrepancies between import entry documents and goods received but you should have in place a system to investigate and resolve under- or over-shipments. A report will only need to be made if the discrepancies are not resolved within 14 days.

If you receive a preference certificate (as per the paragraph above), you should endorse it with the stock reference number for the consignment it covers and the date of entry to Free Zone of the goods. This is to avoid the risk of losing preferential treatment if the certificate's time limit expires before the goods are removed from the Free Zone and declared to free circulation.

 

( linda )12 Dec,2011

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