Inward processing - Import and processing of goods with a view to re-export
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Inward processing allows EU businesses to import non-EU goods for processing or repair with the aim to re-export said goods outside the European Union (EU).
Depending on the final country of destination of the goods, the businesses may choose:
- either inward processing - suspension system, if the goods are intended for re-export after processing.
This scheme allows for the processing of the goods while the duty is suspended subject to a security which will be released at the time the processed goods are re-exported; - or inward processing - drawback system, if the final destination of the goods is not determined at the time of import but their export is highly likely after their processing;
This scheme enables the repayment of all import duties and taxes in the event the processed goods are subsequently re-exported.
Resorting to inward processing requires authorisation from the Customs Department at the Customs and Excise Agency.
Who is concerned?
Any business in the EU who intends to carry out any processing, assembly, working or repair of non-EU goods within the European Union (EU) before re-exporting said goods may resort to inward processing.
Businesses can apply for assistance from a customs agency.
How to proceed
Authorisation of inward processing
The operator must request a prior authorisation for inward processing (suspension or drawback system) in writing (on plain paper) from the Customs Department at the Customs and Excise Agency.
The administration will communicate the necessary information and documents required if need be.
When the authorisation is granted, the administration will issue the authorisation with predetermined deadlines and processing conditions that must be complied with.
The operator can then complete the import declaration by indicating the authorisation of inward processing identification number.
Inward processing - suspension system
In the case of inward processing - suspension system, the operator provides a surety which covers for the customs duties.
The goods can then be processed in compliance with the provisions and deadlines set by the authorisation.
In order to close the inward processing procedure, operators must re-export the goods outside the European Union. The customs will release the surety:
- either at the time the goods enter the transit system;
- or when the goods leave the European Union.
In the event the goods are not re-exported, the business must pay the customs duties as if it were a definitive import of goods. The surety is released in that case.
Inward processing - drawback system
The inward processing - drawback system entails that the operator pays all import duties at the time of import.
The goods can then be processed in compliance with the provisions and deadlines set by the authorisation.
In order to close the inward processing procedure, operators must re-export the goods outside the European Union. They will be reimbursed all customs duties paid when the goods were imported.
In the event said goods are not re-exported, the business must not carry out any formality with the customs, as the import duties have already been paid.
Online services and forms
Who to contact
Customs Department
-
Customs and Excise Agency Customs Department
- Address:
-
22, rue de Bitbourg
L-1273
Luxembourg
Luxembourg
BP 1605, L-1016 Luxembourg
- Phone:
- (+352) 28 18 28 18
- Fax:
- (+352) 28 18 92 00
Related procedures and links
Procedures
Links
Further information
Legal references
-
Règlement (UE) n° 952/2013 du Parlement européen et du Conseil du 9 octobre 2013
établissant le code des douanes de l'Union
-
Règlement délégué (UE) n° 2015/2446 de la Commission du 28 juillet 2015
complétant le règlement (UE) no 952/2013 du Parlement européen et du Conseil au sujet des modalités de certaines dispositions du code des douanes de l’Union
-
Règlement d'exécution (UE) 2015/2447 de la Commission du 24 novembre 2015
établissant les modalités d’application de certaines dispositions du règlement (UE) no 952/2013 du Parlement européen et du Conseil établissant le code des douanes de l’Union
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