Inward processing procedure - how does it work and when is it worth using?
Inward processing - what is worth knowing?
If you are importing goods from outside the European Union that need to be repaired, upgraded or are to be used in the production of a new product, the solution may be to inward processing procedure.
What is it? It is a special customs procedure that allows temporary importation of non-Community goods in order to perform certain activities on them, such as:
- repair,
- assembly,
- processing,
- the use of a new product in the production process.
The key point is that once the goods have been processed must leave the customs territory of the European Union. As a result, the entrepreneur does not pay customs duties or VAT on importation, as these goods are not in free circulation on the EU market.
What is inward processing and what benefits does it offer companies? In the series Targeted tips This is explained by our Director of Alpha Customs Agency - Marcin Szreder.
What is the procedure like in practice?
In order to benefit from inward processing, the entrepreneur should:
- Submit application for a permit to the customs authority.
- Indicate what operations will be performed on the goods.
- Ensure full accounting and documentation of the process.
- Once the processing is complete - export the goods outside the EU and close the procedure.
„At Alfa Customs Agency, we make sure that the documentation and settlement of the entire process is prepared correctly, so that the trader avoids the risk of errors and additional costs.” - he emphasises Marcin Szreder.
Why use inward processing?
With this procedure you gain:
- no customs duties or VAT on importation,
- the ability to offer comprehensive processing services to customers outside the EU,
- competitive advantage in industries where fast and low-cost production is important,
- security of operation in compliance with EU customs regulations.
When is it worth contacting us?
- When you bring in goods from outside the EU for repair or upgrading.
- If your company processes components for foreign customers.
- When you plan to manufacture a new product from non-Community materials and the finished product will be exported outside Europe.
- If you want to be sure that the procedure will proceed safely and that the documentation will comply with the requirements of customs law.
Contact the experts at Alfa Customs Agency
At Alfa Customs Agency, we help companies to implement and carry out the inward processing procedure - from the preparation of the application to the final settlement and closure of the procedure.
We will ensure that your process runs smoothly, without the risk of errors or additional costs.
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