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When applying for a registered store, a manufacturer must declare the size of packing that constitutes his 鈥渂ulk unit鈥�. (See section TPD3160) This may range from a case to a shrink-wrapped pallet. Whatever size of packing the manufacturer chooses as his bulk unit, it must be an individually sealed unit. 鈥楽ealed鈥� in this context means enclosed in such a way that the contents cannot be removed without breaking the packaging, such as would occur when opening a taped case or shrink-wrapped pallet.

The manufacturer may wish to open 鈥渂ulk units鈥� and remove part of the contents to make up mixed orders. This is known, logically enough, as 鈥渂reaking bulk鈥�.The manufacturer must declare, at the time he applies for registration of a store, whether or not he wishes to 鈥渂reak bulk鈥� whilst the product is still in duty suspense within the registered store. (See section TPD10050 for information on breaking bulk in stores approved for 鈥渆lectronic removal鈥�.)

A manufacturer may only request 鈥渙ffsetting鈥� arrangements if he does not break bulk in the registered store.