REGIME 42 - ONWARD SUPPLY RELIEF
Onward Supply Relief (OSR), also known as Customs Procedure 42 or Regime 42, is a specific mechanism within the customs framework that facilitates the free circulation of goods with simultaneous onward supply to another member state. This procedure is primarily designed to streamline the importation process and ensure compliance with VAT and customs duty regulations while supporting international trade.
Key Features of Onward Supply Relief (Regime 42)

Purpose and Application of Customs Procedure 42
The primary purpose of OSR is to allow goods to be imported into one member state and then immediately shipped to another member state without the imposition of import VAT in the first member state. This is particularly beneficial for businesses engaged in cross-border trade, as it helps to simplify the tax and duty processes involved in such transactions.
Conditions for Use
To utilize CP42, certain conditions must be met:
- VAT Registration: The importer must be VAT registered in the UK or appoint a tax representative who is VAT registered in the UK to act on their behalf.
- EORI Number: Both the importer and their appointed tax representative must have an Economic Operator Registration and Identification (EORI) number.
- Onward Supply within 30 Days: The goods must be supplied to another member state within 30 days of their release under this procedure.
- Unaltered State: The goods must remain in an unaltered state from the time of release to the onward supply.
- Evidence of Contract: Evidence of an onward shipment contract must be declared.
Customs Formalities and Documentation for Customs Procedure 42
CP42 requires detailed documentation to ensure compliance and smooth processing:
- Declaration Entries: Specific declaration entries must be completed accurately, reflecting the customs status of the goods.
- Document Codes: Document codes and additional procedure codes must be included in the declaration to substantiate the eligibility for VAT and duty relief.
- Customs Duties: Any applicable customs duties must be accounted for, with appropriate documentation to support any duty override calculations.
Benefits of Onward Supply Relief
- Tax Efficiency: By deferring the payment of VAT to the final destination member state, CP42 helps businesses manage cash flow more effectively.
- Simplified Process: The procedure simplifies the importation process, reducing the administrative burden associated with VAT and customs duty payments.
- Compliance Assurance: Ensures that businesses remain compliant with EU and UK customs regulations, minimizing the risk of penalties or delays.
Restrictions and Considerations of Regime 42
- Prohibited Goods: CP42 cannot be used for goods subject to prohibitions or restrictions under commercial policy measures.
- Inward Processing: Goods processed under inward processing must meet specific conditions to be eligible for onward supply relief.
Customs Procedure 42 or Regime 42 is a valuable mechanism for businesses involved in cross-border trade within the EU and the UK. By adhering to the specified conditions and maintaining accurate documentation, businesses can benefit from the streamlined process, enhanced tax efficiency, and compliance assurance provided by Regime 42. For businesses engaged in importing goods for onward supply to another member state, understanding and utilizing this procedure can significantly simplify their operations and improve their bottom line.
By leveraging the expertise of Customs Complete, businesses can optimize their use of Onward Supply Relief, ensuring tax efficiency and regulatory compliance while focusing on their core operations.