EU customs special procedure · duty suspended

EU Inward Processing relief checker

Rules verified · UCC Reg (EU) 952/2013, Art 256–258

Check whether your non-Union goods qualify for Inward Processing — which suspends import duty and VAT on goods processed in the EU and re-exported — and estimate how much it suspends. Answer two questions, set your re-export share and rates below.

Inward Processing authorisationDuty-suspension processing flow

Check your shipment

1. Are the goods NON-Union — imported into the EU from outside the EU customs territory?
2. Are they imported to be PROCESSED in the EU — manufacture, assembly, working or repair?
3. What share of the processed products will be RE-EXPORTED out of the EU?
100%

The rest is assumed released for free circulation in the EU, where the suspended duty and VAT become payable.

Value of the non-Union goods at import.
From the EU tariff (TARIC) for your HS code.
The standard rate of the Member State of import.

Inward Processing fits

Inward Processing fits this shipment: non-Union goods imported to be processed in the EU can move under IP with import duty and import VAT SUSPENDED, conditional on a guarantee and on discharging the procedure (re-export, or paying up on release for free circulation). The figures below are an estimate, not a guarantee.

Estimated duty + VAT (an estimate, not a quote)

Import duty
€500.00
Import VAT (on value + duty)
€2,205.00
Total charges on a normal entry
€2,705.00
Suspended by IP (100% re-exported)
€2,705.00

€0.00 stays payable on the share released for free circulation in the EU — at 100% re-export, nothing falls due, but the guarantee secures it until you discharge the procedure.

Import VAT is charged on the customs value plus the duty (€10,500.00 here), not on the customs value alone.

What Inward Processing does for this shipment

  • Import duty and import VAT on the non-Union goods are SUSPENDED while they are processed under the procedure, instead of being paid up front and reclaimed later.
  • On the products you re-export out of the EU, that suspended duty and VAT never becomes payable — the relief is discharged by the re-export.
  • The share you release for free circulation is the only part where the duty and VAT (calculated under UCC Art 85/86) actually falls due.

What you need to use IP

  • An Inward Processing authorisation from the customs authority of the Member State where you operate — granted only when the goods can be identified in the processed products (UCC Art 256(2)) and the economic conditions are met.
  • A guarantee securing the potential customs debt on the non-Union goods (UCC Art 89) — the duty and import VAT are suspended, not waived, until the procedure is discharged.
  • A bill of discharge (in the UK, Form BOD1) sent to the supervising customs office no later than 30 days after the end of the period for discharge — failure to discharge triggers a demand to pay the suspended duty and VAT.
  • Discharge within the authorised period (UCC Art 257) — by re-export, transfer to customs warehousing or a free zone, or release for free circulation with the duty and VAT paid.

If Inward Processing does not fit

If Inward Processing does not fit, the usual alternatives are customs warehousing (store the non-Union goods duty- and VAT-suspended without processing, then re-export or enter later), or a normal customs entry that pays the import duty and import VAT up front. Inward Processing is specifically the route for non-Union goods that are PROCESSED in the EU and then re-exported.

General guidance and an estimate, not legal or customs advice. EU Inward Processing authorisation, economic conditions, the rate of yield, the method of calculating the customs debt and the discharge are determined by your national customs authority under the Union Customs Code (Regulation (EU) No 952/2013, Articles 256-258). Confirm with customs or a licensed customs representative before relying on IP.

The procedure is discharged by re-export (or warehousing / free zone). The authorised discharge period, the rate of yield and the customs debt are set by your national customs authority — this is an estimate, not a quote.

Get the Inward Processing readiness pack

The checker above is free. The pack turns the verdict into something you can act on — the authorisation checklist, a duty/VAT suspension worksheet, a bill-of-discharge calendar, and the route comparison, in one place.

One-time purchase. No subscription. The free checker stays free.

Inward Processing (IP) lets non-Union goods be brought into the EU with import duty and import VAT suspended, processed — manufactured, assembled, worked or repaired — and then re-exported with no duty paid. The duty is not waived, it is suspended, secured by a guarantee, until you discharge the procedure: re-export earns the relief; releasing the products to free circulation in the EU makes the suspended duty and VAT fall due.

  • How it worksImport duty + import VAT are suspended at entry (not paid up front and reclaimed); you process the goods, then re-export — the suspended charges never become payable on the re-exported share.
  • What you needA customs authorisation (with the economic test & goods identifiable in the products, Art 256(2)), a guarantee (Art 89), and a bill of discharge — in the UK, Form BOD1.
  • Who benefitsRe-export manufacturers and repairers: import raw materials, components or broken units from outside the EU, work on them, ship the finished goods back out — without the import duty and VAT ever being paid.
  • If it does not fitGoods only stored (not processed) belong under customs warehousing; goods staying in the EU for good take a normal entry and pay the duty + VAT up front.

The checker returns an instant verdict and estimates the duty + VAT that IP suspends. Every figure is computed in your browser from your own inputs; nothing you enter leaves your device. Guidance and an estimate, not a guarantee.

What Inward Processing is, in plain terms

Inward Processing is one of the EU's customs special procedures. Under the Union Customs Code (Regulation (EU) No 952/2013, Article 256), non-Union goods can be “used in ... one or more processing operations without being subject to ... import duty” or the other import charges. In practice that means a manufacturer or repairer can import raw materials, components or broken units from outside the EU, work on them, and re-export the finished products — without the import duty and import VAT ever being paid, provided the goods are re-exported. The duty and VAT are not waived; they are suspended, secured by a guarantee, until the procedure is discharged.

The two conditions: non-Union goods, processed in the EU

IP has a narrow scope, and both legs must hold:

  • Non-Union goods — the goods are imported from outside the EU customs territory. Goods already in free circulation in the EU are not imported, so there is no import duty or VAT for IP to suspend.
  • Processed in the EU — the goods undergo a processing operation: manufacture, assembly, working, or repair. Goods that are only stored or transited, not processed, belong under customs warehousing or a normal entry. Outside repair and destruction, Article 256(2) also requires that the imported goods can be identified in the processed products.

Re-export discharges the relief — free circulation triggers the debt

The whole basis for the suspension is that the goods leave the EU again. The procedure is discharged by re-exporting the processed products (or by placing them in customs warehousing or a free zone). On the share you re-export, the suspended duty and VAT never become payable. But if the processed products are instead released for free circulation in the EU, the suspended import duty and VAT fall due — calculated, under UCC Articles 85 and 86, either on the original non-Union goods or on the processed products at the time of release. That is why this tool asks for a re-export share: the part you keep in the EU is the part you pay on.

How the duty and VAT estimate works

The estimate is deliberately simple and transparent. The import duty is the customs value times the duty rate. The import VAT base is the customs value plus the duty (the duty is itself VAT-able), so VAT is charged on that combined figure, not on the bare value. The total of duty and VAT is then split by your re-export share: the re-exported part is what IP suspends, and the free-circulation part is what stays payable. The rates are your inputs — the duty rate comes from the EU tariff (TARIC) for your HS code, and the VAT rate is the standard rate of the Member State of import. No rate dataset is built in, because both vary by classification and country.

Authorisation, guarantee, bill of discharge

IP is not automatic. You need an authorisation from the customs authority of the Member State where you operate, which sets the period for discharge (Article 257). You provide a guarantee securing the potential customs debt (Article 89). No later than 30 days after the period ends you submit a bill of discharge to the supervising customs office — in the UK's CDS that is Form BOD1 — reconciling what was imported against what was re-exported, warehoused, or entered for free circulation. Miss the discharge and customs issues a demand to pay the suspended duty and VAT. Article 258 also allows processed goods to be temporarily re-exported for further processing outside the EU under the outward-processing rules.

If Inward Processing does not fit

When the goods are not non-Union, or they are not actually processed, IP is the wrong route. Customs warehousing suspends duty and VAT on non-Union goods that are stored (not processed) and later re-exported or entered. A normal customs entry simply pays the import duty and VAT up front — the right choice when the goods are staying in the EU for good. IP earns its overhead only when non-Union goods are processed and a meaningful share is re-exported.

Frequently asked questions

Does Inward Processing suspend import VAT as well as duty?

Yes. Article 256(1) suspends import duty and the “other charges ... under other relevant provisions in force”, which the European Commission's guidance confirms includes import VAT and excise. Both are suspended while the goods are under the procedure, secured by a guarantee.

What happens if I sell the processed goods inside the EU?

Selling them in the EU means releasing them for free circulation, which discharges that share of the procedure by payment, not re-export. The suspended import duty and VAT then become payable, calculated under UCC Articles 85–86 on the original goods or the processed products.

Is the suspended amount this tool shows a quote?

No — it is an estimate from your own customs value and rates. The actual customs debt, the rate of yield, the method of calculation and the discharge are determined by the national customs authority on the IP authorisation.

Is anything I enter sent to a server?

No. The verdict and the estimate are computed entirely in your browser from the rules and formula described above. Nothing you enter leaves your device.

Sources

  • EUR-Lex — Union Customs Code, Regulation (EU) No 952/2013, Articles 256–258 (Inward processing) — Art 256(1): non-Union goods may be used in processing operations “without being subject to ... import duty” or the other import charges; Art 256(2): the goods must be identifiable in the processed products (outside repair/destruction); Art 257: the customs authorities set the period for discharge; Art 258: temporary re-export for further processing. The EUR-Lex HTML viewer returned no text to our fetch this session; the verbatim article wording was confirmed from the official UK retained-EU reproduction at legislation.gov.uk (/eur/2013/952/article/256–258). Confirmed 2026-06-15.
  • European Commission — Taxation & Customs Union, Inward processing — non-EU goods used in processing (manufacture or repair) are “not subject to import duty” or “other taxes related to import, such as VAT/excise duties”; if released for free circulation the duty and import VAT are calculated and become payable; the trader must obtain an authorisation and provide a guarantee (UCC Art 89). Confirmed 2026-06-15.
  • GOV.UK — Import and export: inward processing bill of discharge (BOD1) — the bill of discharge goes to the supervising customs office no later than 30 days after the end of the discharge period; failure to discharge leads to a demand to pay the suspended VAT and duty. UK CDS corroboration of the EU discharge mechanic; UK-specific deadlines are flagged as such. Confirmed 2026-06-15.

General guidance and an estimate, not legal or customs advice. EU Inward Processing authorisation, economic conditions, the rate of yield, the method of calculating the customs debt and the discharge are determined by your national customs authority under the Union Customs Code (Regulation (EU) No 952/2013, Articles 256–258). Confirm with customs or a licensed customs representative before relying on IP.

Last verified:

How this calculator works

Results are computed locally in your browser from the documented formula — no inputs are sent to a server. Sources, rates, and assumptions are listed in the project's product intent map; Stage 2 replaces this text with the concrete methodology and dated sources.