The equivalence procedure lets you use identical free circulation goods instead of IP goods for processing and re-export. This means you can hold both IP and free circulation goods in common stock without having to distinguish which specific goods have been entered into IP.
Equivalence cannot be used when goods are subject to Anti-Dumping Duty.
When using the equivalence procedure:
- you must supply evidence to show that free circulation and IP goods are exactly the same
- you need prior authorisation – so it cannot be used with authorisation by declaration
- if any of your imported goods are not later re-exported, it cannot be because your customers have differentiated between your IP and free circulation goods
- if you have applied for IP on the basis that the goods you need are unavailable in the EU, you cannot use equivalence on EU-produced goods
There are 2 changes on the equivalence procedures. These are:
- prior export equivalence – lets you export processed products made from the processing of equivalent free circulation goods before you import your IP goods
- prior import equivalence – lets you release import goods to free circulation without the need for duty to be paid, on the basis that equivalent goods will be exported later