Drilling and production platforms on the continental shelf
Source: gov.uk (2025-04-30)

Information on authorised use on goods required for drilling and production platforms on the continental shelf.

Authorised use allows customs duties to be suspended for goods intended for fixed drilling or production platforms (tariff sub-heading 8430 49) and floating or submersible drilling or production platforms (tariff sub-heading 8905 20). It only applies to fixed or floating platforms located within the UK territorial waters and the UK Continental Shelf, or platforms that are constructed in dock before being moved to its location offshore.

What the continental shelf is

The UK Continental Shelf comprises areas of the seabed and subsoil beyond the territorial sea over which the UK exercises sovereign rights and exploration and exploitation of natural resources.

Section 1(7) of the Continental Shelf Act 1964 (https://www.legislation.gov.uk/ukpga/1964/29/enacted) sets out the definition of the UK Continental Shelf.

The Continental Shelf (Designation of Areas) Order 2013 (https://www.legislation.gov.uk/uksi/2013/3162/made) confirms the designated areas outside the UK territorial waters.

What UK territorial waters are

The Territorial Sea Act 1987 (https://www.legislation.gov.uk/ukpga/1987/49) defines UK territorial waters as 12 nautical miles adjacent to the UK.

Goods that are eligible

Goods used in the installation, running, surveying or operation of the platform are eligible for authorised use. This includes goods used for downhole well construction.

Goods such as motor fuel, lubricants and gas, which are necessary for the operation of machines and apparatus but are not integral parts of the platforms, are regarded as also being used for incorporation in drilling or production platforms.

Tubes, pipes, cables and their connecting pieces, which link fixed or floating platforms to the mainland are also eligible.

Goods used for training may also be eligible for authorised use.

Eligible goods can be identified in Authorised use: Eligible goods and authorised uses (https://www.gov.uk/government/publications/authorised-use-eligible-goods-and-authorised-uses).

Spare parts being imported under authorised use

Essential spare parts may be entered to authorised use even when they are not actually fitted to the platform. These are spare parts that are required to be held on the rig for safety purposes, or for possible use in the event of a breakdown. They would normally be goods that are unlikely to see much usage but are ready in the event they are needed. These items must be clearly identifiable in the inventory. These essential spare parts may have a different period of discharge to other goods on the authorisation.

In certain circumstances, essential spare parts may be stored on land, for example if the part is too big to store on the rig. These goods should be kept ready for rapid deployment.

Goods not eligible to import

Goods used in Windfarms are not eligible for authorised use.

Equipment used to test goods are not eligible for authorised use. However, other Special Procedures including Temporary Admission or Inward Processing may be appropriate.

Goods incorporated on onshore platforms used for land-based operations in the UK are not eligible for authorised use. However, goods may be stored or repaired on land for future use but must not be used in connection with land-based drilling operations of any kind.

Completion of authorised use

Authorised use is considered complete when:

goods are supplied to an eligible offshore platform and have been put to the prescribed use

essential spare parts have been put to their prescribed use or the period of discharge has expired. The period of discharge for spare goods may differ from other goods imported and will be confirmed on the authorisation notification - in certain cases, the period of discharge may be extended and the authorisation holder must contact their supervising office to discuss this

How an authorisation holder can return goods to the UK

Goods put to a specified authorised use on the UK continental shelf are not regarded as domestic goods on the discharge of the procedure if the goods remain in the UK sector of the continental shelf.

Partial or full relief from import duty is available on goods imported back into the UK where those goods have previously been exported from the UK to the UK Continental Shelf while subject to an authorised use procedure. This is known as Returned Goods Relief (RGR).

Certain conditions have to be met to claim the relief. These are:
- the goods must be domestic goods (they must be UK-VAT paid or if previously imported to the UK, they must be in free circulation and any applicable import duties must be paid)
- the goods must be re-imported in an unaltered state
- for import VAT relief, the person re-importing the goods must be the same person who previously re-exported them from the UK.
- goods must be re-imported within three years of export (this can be waived in certain circumstances)
In addition to the conditions above, RGR can be claimed on goods imported into the UK from the UKCS where all of these conditions are satisfied:
- the goods were exported to the UK sector of the continental shelf while subject to an authorised use procedure
- that authorised use procedure was discharged while the goods were located in the UK sector of the continental shelf
- the goods were used in the UK sector of the continental shelf under the authorised use procedure for the exploration of oil and gas or the construction, repair, maintenance, conversion or equipping of drilling and production platforms
Goods that do not meet the conditions above may need to be returned into the UK with duties payable.

What an authorisation holder can do with waste or scrap goods

The majority of waste and scrap resulting from the normal working or processing of goods, or losses due to natural causes can be returned to the UK using RGR.

Waste and scrap that cannot be returned using RGR may need to be returned to the United Kingdom with duties payable.

Read pay less import duty and VAT when re-importing goods to the UK (https://www.gov.uk/guidance/pay-less-import-duty-and-vat-when-re-importing-goods-to-the-uk-and-eu#enduse) and in section 37 of the United Kingdom Customs Tariff: Reliefs from Import Duty (https://www.gov.uk/government/publications/reference-documents-for-the-customs-reliefs-from-a-liability-to-import-duty-and-miscellaneous-amendments-eu-exit-regulations-2020) document for more information on RGR.