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PART IIU.K.CUSTOMS-APPROVED TREATMENT OR USE

[F1TITLE III U.K. CUSTOMS PROCEDURES WITH ECONOMIC IMPACT

CHAPTER 3 U.K. Inward processing

Section 2 U.K. Additional conditions concerning the granting of the authorisation

Article 537 U.K.

An authorisation shall be granted only where the applicant has the intention of re-exporting or exporting main compensating products.

Article 538 U.K.

An authorisation may also be granted for the goods referred to in the fourth indent of Article 114(2)(c) of the Code, with the exception of:

(a)

fuels and energy sources other than those needed for the testing of compensating products or for the detection of faults in import goods needing repair;

(b)

lubricants other than those needed for the testing, adjustment or withdrawal of compensating products;

(c)

equipment and tools.

Article 539 U.K.

[X11. The economic conditions] shall be deemed to be fulfilled except where the application concerns import goods mentioned in Annex 73.

[X12. However, the conditions] shall also be deemed to be fulfilled where an application concerns import goods mentioned in Annex 73, provided that:

(a) the application concerns:

(i)

operations involving goods of a non-commercial nature,

(ii)

a job processing contract,

(iii)

the processing of compensating products already obtained by processing under a previous authorisation the granting of which was subject to an examination of the economic conditions,

(iv)

usual forms of handling referred to in Article 531,

(v)

repair,

(vi)

the processing of durum wheat falling within CN code 1001 10 00 to produce pasta falling within CN codes 1902 11 00 and 1902 19 ; or

(b) the aggregate value of the import goods per applicant and per calendar year for each eight-digit CN code does not exceed 150 000 EUR; or

(c) in accordance with Article 11 of Council Regulation (EC) No 3448/93 (1) , import goods referred to under Part A of Annex 73 are concerned and the applicant presents a document issued by a competent authority permitting the entry of those goods for the arrangements, in the limits of a quantity determined on the basis of a supply balance.

Article 540 U.K.

The authorisation shall specify the means and methods of identifying the import goods in the compensating products and lay down the conditions for the proper conduct of operations using equivalent goods.

Such methods of identification or conditions may include examination of the records.]