Do we need a Customs Procedure Code (CPC) to return faulty parts to Hong Kong


We are a small business that imports marine navigation equipment from Hong Kong. We recently received a batch of marine chart plotters with a defective printed circuit board which the manufacturer immediately addressed by sending us new parts to install. This we have done but now need to send the defective boards back to Hong Kong. The carrier has asked for a CPC code to describe to customs what the items are etc. I have looked at HMRC site but the explanation is confusing to say the least. We are sending ten small printed circuit boards – all defective and of no commercial value; they are a permanent export and will not be coming back.
Any advice will be most gratefully received.


Hi Alan
The CPC would be 10 00 001 which covers permanent exports from UK. As the goods have previously been imported into UK and presumably Duty and VAT paid on them there would be no need to refer to them being faulty parts. I would be pleased to handle the return shipment to Hong Kong if you would like to contact me.
Mike Barnes
Despatch Point Limited
01256 840884


Hi Alan

Your supplier in Hong Kong could be liable for import duties and taxes if you do not declare the reason for export as faulty returned goods.

If you have already paid VAT and DUTY on the goods you are returning, there is also a way to reclaim this.

I would be happy to advise and as an example can offer express courier transit of 2kgs for £40.

Save Money Sending.


The items maybe exported from the UK using the CPC that covers permanent exports.

In future should this situation occur again you may wish to consider using ‘Outward Processing Relief’ (OPR). OPR provides duty relief on imports of goods from countries outside of the European Union (EU) which have been produced from previously exported EU goods.

The procedure also allows faulty goods to be returned to a country outside of the EU for repair, or for replacement with equivalent goods under the Standard Exchange System (SES).

You may need to import replacements before you export the faulty goods. This is called ‘prior importation’. Before you can claim duty relief under OPR, you must be authorised to use the arrangements

OPR is a customs procedure that relieves re-imported goods only from customs duty.

All replacements are regarded as importations of new goods and are chargeable with VAT in accordance with the normal valuation rules.

Further information can be found in Notice 235 ‘Outward Processing Relief’ which can be viewed via the following link:

Notice 235: outward processing relief

Alternatively, the Notice can be viewed on the GOV.UK website at by typing ‘Notice 235’ in the search box and selecting the following links from the search results:

Notice 235: Outward Processing Relief > Notice 235: outward processing relief.

I hope this is of assistance.

HM Revenue & Customs
Customs International Trade & Excise

Export Action Plan