Understanding Inward Process Relief (IPR).

The Inward Processing procedure

Inward processing allows businesses to process, transform, destroy, or repair non-EU goods within the EU customs territory without paying import duties. After processing, these goods can be re-exported or released for free circulation onto the market.

How Inward Processing can benefit your EU business operations

One of the main advantages of the inward processing procedure is that it allows companies to handle non-EU goods without incurring import duties or other taxes. This exemption also extends to trade policy measures, as long as these measures do not prohibit the entry or exit of the goods from the customs territory. This arrangement is particularly beneficial for EU manufacturers who rely on non-EU raw materials and semi-finished products, as it levels the playing field with manufacturers in third countries and promotes economic activity within the EU. It can also be beneficial for companies that perform repairs and re-export the goods to the owner as you do not have to pay import duties on the broken device.

Key requirements to get authorised for Inward Processing in the EU

To use the inward processing procedure, an authorisation from the customs authorities is required. Applying for an authorisation can be done via the EU Trader Portal. The customs authority specifies the period within which the inward processing procedure is to be discharged.

The requirements to obtain an authorisation are:

• To be established in the custom territory of the Union. (Only in exceptional cases an authorisation can be granted to a person not established in the customs territory of the Union.)
• To provide assurance of the proper conduct of the operations.
• To provide a guarantee where a customs debt or other charges may be incurred.
• To carry out processing operations on the goods or arrange them to be carried out.

License on declaration for occasional shipments

For occasional shipments you can also apply for a license per declaration. When applying for this license on declaration, the customs authorities will assess whether to grant the authorisation on a case-by-case basis. You will have to set a deposit, which will be refunded once you have re-exported the goods.

Getting authorised for Inward Processing in the UK

To apply for inward processing in the UK you need to use your Government Gateway user ID. You can apply online here.

The requirements to apply for inward processing in the UK are:

• Being established in the UK
• Having an EORI number
• Checking if you need a guarantee
• Checking if you need an import licence

If you’re not established in the UK:

• HMRC will consider an application to use inward processing for non-commercial imports
• You need to be fully authorised

More information about applying for inward processing in the UK can be found on the website of HMRC.

Apply for Inward Processing in Norway

In Norway, application for inward processing authorisation must be made through the Altinn portal. Click here to visit the portal.

To log into the Altinn portal you need an account that is connected to your organisation via a registered Norwegian organisation number. To access Altinn you need a Norwegian BankID, Buypass or Commfides certificate.

Within Altinn, specific forms are available that must be filled in to apply for ‘spesialordnings’ (special arrangements) such as inward processing.