Inward processing

Inward processing provides duty relief for goods imported for processing or repair. It is not necessary to pay anti-dumping duties or apply for an import license for these goods.

You can use the inward processing procedure if:

• the company is established in the EU
• the goods are subject to customs duties or trade policy measures such as an import license
• the original goods are identifiable in the processed product
• essential interests of producers in the Union are not adversely affected
• you can provide the necessary guarantees for the proper execution of the operation

Goods processed or repaired under inward processing become a so-called compensating product. Whereas this is usually re-exported, the processed product can be declared for free circulation.

Guarantee requirements

You are required to provide a guarantee for customs duties and other taxes, such as VAT on the imported goods.

Guarantees

You need authorisation

To use the inward processing procedure, please apply for authorisation from Swedish Customs.

In some cases, you can apply for an authorisation for individual consignments in the customs declaration.

Apply for authorisation for inward processing.

Exchange of information, INF, for special procedures

If the import and export/re-export take place in different Member States, an exchange of information between customs authorities is needed. The same applies if there is a transfer of the authorization between different economic operators.

Read more about the INF for special procedures (in Swedish)

Import declaration for inward processing

Goods for inward processing are declared in the import declaration by entering certain codes.

It is important that the information contained in invoices and delivery notes, for example, facilitates the identification of the imported goods in the processed products. The description of the goods in the declaration must match the information in the inward processing authorisation.

Import declarations for inward processing.

Period of discharge

The inward processing operation must be completed within the period specified in your inward processing authorisation. The time is counted from the date the non-EU goods are entered for the procedure, i.e. the date the goods are imported. Normally, you are allowed the time you need to carry out processing or repair, but there may be limitations (for example, in the case of equivalent goods or handling in customs warehouses). If the period of discharge is exceeded, a customs debt is incurred. You may be granted a reasonable extension of that time limit if you submit a reasoned request to Swedish Customs.

How to discharge inward processing

Inward processing is discharged when the processed goods are declared for a new customs procedure. This can be re-export or release for free circulation (import), but also, for example, transit or storage in a customs warehouse. You should always provide a bill of discharge showing how the procedure was discharged.

If the goods are covered by an INF for special procedures, this should also be discharged when the goods are entered for a new customs procedure.

Re-export after inward processing

If the inward processing procedure concludes with re-export, you need to lodge a customs declaration for re-export. To obtain proof that the goods have been exported, it is important that you fill in the correct codes in the customs declaration.

Re-export after inward processing

Import after inward processing

If inward processing is concluded with import, you need to submit an import declaration and pay import duties and taxes. You will also need to present any permits and import licenses.

Import after inward processing.

Destruction during inward processing

Destruction carried out at the request of the declarant can also take place under the inward processing procedure. To do so, destruction must be included as a processing operation in the inward processing authorization. You may opt to supplement your authorisation to include destruction.

Bill of discharge

For the case to be closed, you shall submit a bill of discharge within 30 days of the end of the discharge period.

Bill of discharge after inward processing.

Equivalent goods

You can use EU goods instead of imported goods if the EU goods meet the requirements for equivalent goods, i.e., that the EU goods must have the same commercial quality, technical characteristics and CN code (the first eight digits of the commodity code) as the imported goods.

If equivalent goods are to be used, they must be included in the authorisation.

Equivalent goods under inward processing.

Common forms of handling

Goods placed under the inward processing procedure may undergo usual forms of handling intended to preserve them, improve their appearance or marketable quality, or prepare them for distribution or resale. The usual forms of handling are those listed in Annex 71-03 of the Delegated Regulation.

Annex 71–03 (in Swedish) Pdf, 1.2 MB.

Movement of goods

Goods placed under the inward processing procedure may be moved (transported) between different places in the EU without any customs formalities other than those of an accounting nature. The relevant operators and places must be indicated in, or added to, the authorisation.

If you carry goods to the office of exit with the intention of discharging the inward processing procedure by taking the goods out of the EU, the goods must be listed in a re-export declaration. The goods must remain under the inward processing procedure until they are brought out of the customs territory of the Union.

Find out more

A course on inward processing is available at Swedish Customs. During the course, you will learn the entire procedure, from how to apply for an authorisation to how to discharge the procedure with a bill of discharge or a recovery order.

Find out more and sign up for an inward processing course (in Swedish).