45.—(1) Subject to paragraph (2), an approval or authorisation to carry out an activity specified in regulation 3(2) (“a relevant non-transit Part 1 procedure authorisation”) may authorise requirements in relation to the relevant procedure to be met by reference to equivalent goods (“an equivalent goods authorisation”).
(2) An equivalent goods authorisation must not be granted—
(a)subject to paragraph (3), where, in the opinion of an HMRC officer control by any HMRC officer of the goods to be declared for the relevant non-transit Part 1 procedure could not be satisfactorily exercised if an equivalent goods authorisation were granted;
(b)in relation to a declaration of goods for a temporary admission procedure unless—
(i)the goods fall within the description given in any of the following sections of the temporary admission document—
(aa)section 1 (pallets);
(bb)section 2 (spare parts, accessories and equipment for pallets);
(cc)section 3 (containers);
(dd)section 4 (spare parts, accessories and equipment for containers); and
(ii)full relief is to be given in respect of those goods under regulation 40;
(c)in relation to a declaration of goods for an inward processing procedure where the goods are only to be subject to an operation of a type that is—
(i)described in sub-paragraph (b) of paragraph 11 of Schedule 2 to the Act; and
(ii)specified in a notice published by HMRC as an operation constituting a usual form of handling;
(d)in relation to a declaration of goods for an inward processing procedure where the export of the processed goods that would result from the processing under the procedure would constitute a breach of the requirement at regulation 22(3)(c);
(e)in relation to a declaration of goods for a storage procedure to be kept in a storage warehouse, an inward processing procedure, a temporary admission procedure or an authorised use procedure where, if the goods were declared for the free-circulation procedure—
(i)they would be subject to an additional amount of import duty by virtue of section 13, 14 or 15 of the Act; or
(ii)the importer of the goods would be required to give a guarantee under paragraph 15(5) of Schedule 4 to the Act;
(f)in relation to a declaration of goods for an outward processing procedure where, if the equivalent chargeable goods were declared for the free-circulation procedure—
(i)the equivalent chargeable goods would be subject to an additional amount of import duty by virtue of section 13, 14 or 15 of the Act; or
(ii)the importer of the equivalent chargeable goods would be required to give a guarantee under paragraph 15(5) of Schedule 4 to the Act;
(g)in relation to a declaration of goods for a storage procedure to be kept in a customs warehouse where the goods are sensitive goods; or
(h)in relation to a declaration of goods for a relevant non-transit Part 1 procedure where the goods or the equivalent goods have been genetically modified or contain elements that have undergone genetic modification.
(3) Paragraph (2)(a) does not apply where the applicant for authorisation is an authorised economic operator within the meaning given in section 22(2) of the Act unless, in the opinion of an HMRC officer, consideration is required of matters relating to the use of equivalent goods that were not considered at the time when the applicant was authorised as an authorised economic operator.
(4) A relevant non-transit Part 1 procedure authorisation may authorise equivalent goods to be stored together with other goods where—
(a)the equivalent goods can be identified by such method as HMRC may specify in the approval notification; or
(b)where it is not possible to identify the equivalent goods without incurring disproportionate cost, the approval notification specifies that it is a requirement of the procedure that the authorised person carries out accounting segregation in accordance with a notice made under regulation 44 (record keeping).
(5) It is a condition of an equivalent goods authorisation in relation to the declaration of goods for an inward processing procedure, an outward processing procedure or a storage procedure to be kept in a customs warehouse that—
(a)goods which are organic must not be replaced by goods which are not organic; and
(b)goods which are not organic must not be replaced by goods which are organic.
(6) An equivalent goods authorisation in relation to the declaration of goods for an inward processing procedure is subject to any conditions set out in a notice published by HMRC concerning—
(a)rice;
(b)wheat;
(c)sugar;
(d)live animals and meat;
(e)maize;
(f)olive oil; and
(g)milk and milk products.
(7) A notice published under paragraph (6) may make different provision for different cases.
(8) In this regulation “organic” has the meaning given in Council Regulation (EC) No 834/2007 of 28 June 2007 on organic production and labelling of organic products.