Inward processing

Inward processing may grant relief from customs duty for goods imported for processing or repairs. You are neither required to pay anti-dumping duty on such goods nor apply for an import licence.

You can use the procedure for inward processing in the following circumstances:

• The company should be incorporated in the EU.
• The goods should be subject to customs duty or trade policy measures, such as an import licence;
• the original goods should be identifiable in the processed product;
• the essential interests of manufacturers in the EU may not be harmed.
• You must be able to provide necessary guarantees for the correct execution of operations.
  

Any goods that you process or repair as part of the inward processing procedure becomes a processed product. This product is often re-exported, but you have the option to present the processed product for free circulation.

Guarantee requirements

A guarantee is required for customs duty and other taxes, such as VAT on imports.

Guarantees

Authorisation is required

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

You may apply for authorisation for single consignments in your customs declaration.

Apply for authorisation for inward processing.

Information exchange, INF, for special procedures

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

More information about information exchange for special procedures (in Swedish)

Import declarations for inward processing

Present your goods for inward processing in the import declaration by entering the corresponding codes.

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

Import declarations for inward processing.

Time for processing

The inward processing procedure should be completed by the deadline indicated in your authorisation for inward processing. The time is calculated from the date when non-Union goods are presented for the procedure, i.e. the date of import. You are usually granted the amount of time necessary to perform the processing or reparation, but some restrictions may apply (for example in cases of equivalent goods or handling in customs warehouses). A customs debt will arise if the time for processing is exceeded. A reasonable extension of the deadline may be granted by Swedish Customs upon receipt of a justified application.

How to complete the inward processing procedure

Inward processing is completed when the processed goods are presented for a different customs procedure. This could be re-export or entering into free circulation (import), but also transiting or storage in a warehouse. Always present a bill of discharge indicating how the procedure has been completed.

If the goods are subject to an information exchange for special procedures, this should also be terminated when the goods are presented for a new customs procedure.

Re-exportation after inward processing

Submit a customs declaration for re-exportation when terminating the inward processing procedure with re-exportation. To be issued a certification of re-exportation, it is important to enter the correct codes in the customs declaration.

Re-exportation after inward processing

Importation after inward processing

When completing inward processing via import you should submit an import declaration and pay import customs duty and taxes. Present all authorisations and import licences.

Importation after inward processing.

Destruction during inward processing

Destruction by the declarant’s own volition may also occur within the inward processing procedure. The inclusion of destruction in the authorisation for inward processing is a requisite for this. You can supplement your authorisation to include destruction.

Bill of discharge

You are required to submit a bill of discharge within 30 days of the deadline for completion to terminate your transaction.

Bill of discharge after inward processing.

Equivalent goods

You may use Union goods instead in place of imported goods if the Union goods meet the criteria for equivalent goods. The Union goods must have the same trade qualities, technical characteristics and KN number (the first 8 digits of the commodity code) as the imported goods.

Your authorisation must state that you are entitled to use equivalent goods.

Equivalent goods under inward processing.

Usual forms of handling

Goods presented for the procedure for inward processing may be subject to usual usual forms of handling intended to preserve them, improve their appearance or marketable quality or prepare them for distribution or resale. These usual forms of handling are indicated in Annex 71-03 of Regulation (EU) no 952/2013 of the European Parliament and of the Council.

Annex 71–03 (in Swedish) Pdf, 1.2 MB.

Movement of goods

Goods placed under the procedure for inward processing may be moved between different locations in the EU without any other customs formalities than record-keeping. Information about relevant agents and locations should be stated, or added to, the authorisation.

When moving goods to the customs office of exit with the intent to terminate the inward processing by exporting the goods from the EU, the goods should be itemised in a re-exportation declaration. The goods should remain under the procedure for inward processing until they have been removed from the Union customs territory.

Learn more

Register for a course about inward processing with Swedish Customs (in Swedish). As part of the course, you will learn the entire procedure, from applying for authorisation to terminating the procedure using a bill of discharge or a repayment demand.

Learn more and register for a course about inward processing (in Swedish).