Processing for re-export
This is a special processing procedure which operates in the context of facilitating manufacturing and exporting companies with the aim of producing products that can compete in the world market and cope with international trade competition.
In particular, this procedure allows non-Union goods to be used in EU-territory under certain conditions, in order to undergo one or more processing operations, without being subject to import duties, other charges (f.ex. VAT, Consumption taxes) or commercial policy measures (provided that such measures do not prohibit the entry into or exit out of the EU customs territory). These “processed” commodities can:
(a) be re-exported outside the EU customs territory
(b) be released for free circulation at the time of payment of the customs duties according to tariff requirements:
(i) as imported goods (initial tariff classification, value, quantity, nature, origin) or,
(ii) as processed products (the customs value, quantity, nature, origin of non-Union goods used in the processing operations shall be taken into account).
Inward processing is destined for goods that fall under the following categories:
• processing of goods, including assembling and adapting to other goods,
- alteration of goods,
- destruction of goods,
- repair of goods, including restoration and operation,
- routine operations aiming at maintaining, improving their appearance or commercial quality or preparing these goods for distribution or resale – Annex 71-03 to Regulation 2015/2446 • processing work to ensure compliance with the technical requirements for release for free circulation,
- the use of certain goods which are not included in the processed products, however, they allow or facilitate the production of such products, even if they are wholly or partly used in this end (production aids).
According to article 240 Regulation 2015/2246 the inward processing permission is not granted to the following production aids:
- fuels and energy resources other than those needed to test processed products or to detect defects in goods placed under the inward processing procedure and requiring repair
- lubricants other than those used for the testing, regulation or withdrawal of processed products
- equipment and tools.
Benefits of inward processing:
Inward processing allows for the supply of goods from third countries that shall be used as raw material and/ or processing aids for the production of goods without incurring import duties and other taxes. This helps to promote and strengthen export-activity to third countries as well as to maintain and improve the competitiveness of the EU manufacturing industry at international level.