Inward processing

You can use the procedure for inward processing under specific 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.

Guarantee

An 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 operators.

INF for special procedures (in Swedish)

Import declaration 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 declaration for inward processing

Value and quantity

If you have an inward processing authorisation, you are required to control the procedure so that the value and quantity specified in the authorisation are not exceeded.

The information specified in the authorisation regarding value and quantity applies for the entire duration of the authorisation, i.e., if the authorisation is valid for two years, the value and quantity must be sufficient for two years.

When using the procedure, you must have some form of accounting system in place to ensure that the quantity and value specified in the authorisation are not exceeded.

For inward processing, it is always the value and quantity upon entry into the Union that must be accounted for, i.e. even if the goods under the procedure are later to be released for free circulation, the imported quantity and amount must be accounted for.

If you notice that you are approaching the authorised limits for quantity and value, you can apply for a change to your authorisation. This must be done well before the limits are exceeded. You must have coverage for what you import, otherwise you may be charged retrospectively.

Requesting an amendment in the Customs Decisions System (in Swedish).

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.

Extension of the deadline for discharge for inward processing

Application for an extension of the processing time for inward processing

If you have goods under the inward processing procedure and the time granted for discharge is not sufficient, it is possible to apply for an extension of that time for an individual declaration. One reason for an extension could be that the processing takes longer than expected.

The inward processing procedure requires that the imported goods are mainly processed while the procedure is ongoing.

For example, storage, or your customers’ inability to receive the goods, are not acceptable reasons for extending the deadline.

How to apply for an extension of the deadline for inward processing

• The email address for requesting an extension is tullverket@tullverket.se
• In the subject line, write ‘Request for extension of the deadline for inward processing/end use, Customs ID/LRN ...’.
• Describe in detail why you need more time to complete the procedure, how long you estimate this will take and your desired end date. In some cases, supporting documents are also required.
• Remember to include your contact details and the name of the company to which the application relates.

Note: if you are acting as a representative, include the contact details of the authorisation holder and their organisation number.

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 discharged when the goods are presented for a new customs procedure.

Re-export after inward processing

Submit a customs declaration for re-export when discharging the inward processing procedure with re-export. To be issued a re-export certificate, it is important to enter the correct codes in the customs declaration.

Re-export after inward processing

Import 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.

Import 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 discharge your transaction.

Bill of discharge for 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.

Read more in 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 end the inward processing by exporting the goods from the EU, the goods should be itemised in a re-export declaration. The goods should remain under the procedure for inward processing until they have been removed from the Union customs territory.