Exchange Goods in Repair Contracts
This section is Guidance
Goods being sent for or returned after repair are excluded from Intrastat.
When parts are sent for repairs there are occasions when a part needs to be returned urgently, perhaps to allow operations to resume, but it is expected that the repair will take some time. To avoid delay, another refurbished part will be issued, and the part originally sent for repair will be repaired and then put into exchange stock.
For example:
A company in France sends an aircraft part for repair to a Northern Ireland company. To enable the aircraft to resume operation as soon as possible, an equivalent (but different) part is taken from exchange stock and sent back to the French company. The part originally sent for repair is then repaired and put into exchange stock.
This applies equally if a Northern Ireland company receives an equivalent, refurbished part from a company in an EU member state.
This transaction is still considered to be a repair and even though a different part is being returned, it should be excluded from Intrastat.
This does not apply to a new part returned in place of a part sent for repair. In this case an Intrastat declaration must be made.
Contact
If you have any questions about this Information Sheet, please forward them via uktradeinfo@hmrc.gov.uk and quote 'Information Sheet, Exchange Goods in Repair Contracts' in the subject box.