Inward Processing Relief (IPR) and Outward Processing Relief (OPR)

Outward processing relief, also known as the outward processing procedure, is a special mechanism that allows you to send goods abroad without paying duty on them on re-entry. It is different to a temporary export in that the condition of the goods changes, as opposed to re-entering the country in the same state.

By using OPR, you can send materials, parts, or products abroad for processing and then reduce the import duty when bringing in the finished product to account for the previously exported goods.

For example, you may be able to use OPR when sending goods to a manufacturer or specialists for repair. In this case, the commodity code may or may not change depending on the item and its rules for goods classification.

Another use of the outward processing procedure is to send parts or materials abroad for manufacturing. For example, if a car component is sent abroad to an assembly plant and then the finished car is imported, you may be able to claim outward processing relief on the value of the component.

Customs Support Group provides assistance with outward processing relief throughout Europe, helping businesses like yours to keep track of OPR claims and remain compliant with regulations. Contact us for more information.

Inward processing relief (IPR), also known as the import processing procedure, is a special customs mechanism similar to the OPR – but for goods processed domestically. 

IPR allows you to reduce your import duty on goods destined to be resold internationally, but cannot be treated as a temporary import due to a change in nature.

For example, a bike manufacturer may be able to claim inward processing relief if they import a derailleur, consume this component in the manufacture of a bike, and then sell the bike on the international market as a finished item. 

The derailleur in this scenario hasn’t been released into free circulation, so the duty can be reclaimed even though the shipment is not re-exported in the same condition.

The purpose of inward processing relief is to reduce the import duty for manufacturers so that they can be more competitive in the international market.

Customs Support Group provides customs and trade solutions throughout the EU, UK, Switzerland, and Norway. We can help you to acquire and maintain your IPR licence so that you can benefit from reduced costs.

Contact us for more information.

Yes, there are time limits for claiming IPR and OPR.

For inward processing relief, the time limit is generally three months. However, this can be extended to six months or longer in extraordinary circumstances. It depends on your product, the manufacturing cycle, and your agreement with your country’s authorities.

If your goods are not consumed in time, then you will be issued a demand notice for the import duty on the goods.

For outward processing relief, it depends on your country, the destination of the goods, and the manufacturing cycle. Due to transit and processing times, there can be a variety of timelines. These will be agreed when you get your OPR licence.

If your goods do not return within the required timeline, then you will need to pay the import duty on the goods when the finished product is imported.

Customs Support Group helps you to navigate IPR and OPR throughout Europe. From help with acquiring your licence to reducing delays at the borders, we are here to help you succeed when using the import and outward processing procedure.

Contact us to start streamlining your processes today.

Due to the strict nature of using IPR and OPR, it takes some time to get your licence. Depending on your country, which procedure you are looking to use, and your company history, it usually takes three to nine months to get a decision – but can take longer.

To claim inward or outward processing relief, you must:

• be financially solvent
• not have a poor history of compliance with customs requirements
• have (or be able to keep) appropriate records

If you already have AEO certification, then this will help you to prove that you have a good history of compliance with customs regulations.

Customs Support Group can help you to obtain AEO, IPR, OPR, and other customs permits across Europe. Contact us to see how we can help you today.

To use IPR and OPR, you must have good record-keeping for the goods which are moving across borders. You must also have a good method for determining when or how much of an item is consumed if it is not a simple part.

For example, consider the use of inward processing relief to claim 10% of your imported butter is consumed as wastage during the baking process. You must have verified this calculation with your supervising authorities so that they agree with the 10% inward processing relief.

Another good practice is using digital solutions across your systems to keep your data seamless and accurate. This reduces your risk of a manual error, and also provides touchpoints for corrective or remedial action in the event of an issue.

CSG provides customs and trade solutions throughout Europe, which facilitate multidirectional communication between systems of all kinds. Combined with the real intelligence of our customs experts, our solutions help keep businesses compliant with inward and outward processing procedures.

Contact us to see how our solutions can streamline your processes today.