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Inward Processing Basics

You can use non-EU goods for processing in the EU.

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These goods won't be subject to:
a. Import duty.
b. Other charges as per other provisions.
c. Certain commercial policy measures, unless they prohibit entry/exit of goods in/from the EU.

Conditions for Processing:

​You can use the inward processing procedure if the goods used in processing can be identified in the final products.

There are exceptions if you're using equivalent goods (as per Article 223).

Simplified Guide for Importing under the Inward Processing Procedure:

  • Check Your Goods:

    • Are they listed in Annex I?

    • Do they come from a non-EU country?

  • Determine Processing:

    • Will you be able to identify the original goods in the final processed product?

    • If using equivalent goods, ensure they meet the criteria from Article 223 of (EU) No 952/2013 and that you're authorized to use them.

  • Know What's Exempted:

    • You won't pay import duty, other charges, or be bound by certain commercial policies unless they prohibit goods' entry/exit.

  • Ensure Compliance:

    • For goods ensuring technical requirements or undergoing standard handling, make sure you adhere to the specifics in the regulations.

  • Import into the EU:

    • Once the processing is done, you can import the goods or their processed versions into the EU.

Article 223: Equivalent Goods

Definition:

  • Equivalent goods are EU goods used or processed in place of goods under a special procedure.

  • They should have the same 8-digit Combined Nomenclature code, quality, and technical characteristics as the goods they're replacing.

Authorization for Using Equivalent Goods:

  • You can use equivalent goods in various customs scenarios, including inward processing.

  • An authorized economic operator is assumed to meet the conditions for using equivalent goods in certain procedures.

When You Can't Use Equivalent Goods:

  • If only standard forms of handling (as per Article 220) are done under inward processing.

  • When a prohibition applies to non-originating goods used in the manufacture of products under inward processing, if a proof of origin is issued in a preferential arrangement context.

  • If it would lead to an unfair import duty advantage or if prohibited by EU legislation.

Guarantee Requirement:

  • If using equivalent goods and the final products would be subject to export duty, a guarantee is needed to ensure payment of the export duty if the non-EU goods aren't imported within a specific period.

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