Inward processing

Inward processing is a special customs procedure that allows non-Union goods to be brought into the EU customs territory with total or partial suspension of import duties, in order to undergo processing operations (working, processing, repair, including assembly).

This regime is essential for European industry competitiveness: it enables companies to access raw materials or components from worldwide at world market prices, without bearing customs duty costs, provided that the processed products (resulting from the processing) are re-exported or receive another authorised customs-approved treatment.

The authorisation is issued by customs authorities after examination of the economic conditions: the operation must not adversely affect the essential interests of Union producers. The holder must maintain accurate material accounts enabling tracking of imported goods and processed products.

The discharge period is set in the authorisation and can be extended. If processed products are ultimately released for free circulation in the EU rather than re-exported, the customs debt is calculated on the basis of the initially imported goods (reference amount of duty) or, in certain cases, on the basis of the processed products themselves.