Outward processing

Outward processing is when Union goods are temporarily exported to a third country for processing or repairs. After the processing, the goods are re-imported free of customs duty or at a lower rate of customs duty and VAT than for normal imports.

What is outward processing and who is eligible?

Any goods that you process or repair as part of the outward processing procedure becomes a processed product. Processed products are subject to lower customs duty and VAT than normal imports.

You can use the procedure for outward processing under specific circumstances.

• The company should be incorporated in the EU;
• It must be possible to identify the goods exported for processed or reparations in the re-imported goods;
• You must be able to provide necessary guarantees for the correct execution of operations.
  

There are some cases where the outward processing procedure may not be used:

• If you receive repayment, or are not charged customs duty on import when exporting your goods;
• If you were granted duty relief on the basis that the goods are used for special purposes (provided that the conditions for this duty relief still apply);
• If you receive export grants or any other remunerations for the goods when exporting them.

Authorisation is required for outward processing

You need authorisation from Swedish Customs to use the outward processing procedure.

Remember that you may be liable to pay anti-dumping duties and apply for necessary import licences for your processed goods, even if you hold an authorisation for outward processing. This does not apply to goods that retain their Union status or are imported for repairs.

Apply for authorisation for outward processing.

Information exchange, INF, for special procedures

If the export and import occur in different member states, an information exchange between customs authorities will be necessary. The same applies if the authorisation to re-import processed goods is transferred between different economic actors.

More information about information exchange for special procedures.

Export declarations for outward processing

The procedure outward processing is initiated at the time when you submit a customs declaration for temporary exportation.

If you applied for authorisation for outward processing in advance, enter the code C019 and your authorisation number in Data element “Särskilda upplysningar/Kod på exportdeklarationen” (Special information/Export declaration code). It is important to enter procedure code 2100 in your declaration.

You may apply for authorisation for single consignments in your customs declaration for temporary exportation. Remember to enter code 00100 in “Särskilda upplysningar” (Special information" and the call-me code 15 in your application for authorisation.

It is important that any information in invoices and consignment notes are used to facilitate the identification of the exported goods in the processed products. The product description in the declaration must correspond with the information in the authorisation for outward processing.

To obtain proof that the goods have been removed from the EU, please enter the code 30400 in Data element “särskilda upplysningar/Kod på exportdeklarationen” (Special information/Code on export declaration).

Discharging the outward processing procedure by re-importation

The procedure outward processing is discharged at the time when you submit a customs declaration for import of the processed goods. Submit the customs declaration to the customs office indicated in your authorisation. Submit documents that attest to the fact that your exported goods are included in the processed goods together with your import declaration (e.g. export invoices and contracts).

Consider the following when issuing your customs declaration for re-import:

• Enter the Customs ID assigned to the consignment at the time of exportation.
• Enter your authorisation number (if you applied directly in your customs declaration, your export customs ID and your authorisation number are the same).
• Enter the correct procedure code.
• In 2021, enter the document code Y067 when declaring goods that enter free circulation after outward processing in cases where the goods were presented for this procedure prior to 31 December 2020. This applies regardless of the country of origin for your goods.

If the goods are subject to an information exchange for special procedures, this should also be discharged. For further information about declaring VAT in your VAT declaration for goods subject to outward processing, please contact the Swedish Tax Authority.

Learn more about outward processing

Register for a course about special procedures with Swedish Customs (in Swedish). This course will teach you about outward processing.

Learn more and register for a course about special procedures.