Inward Processing (IP) allows businesses to obtain relief from customs duties and import VAT on goods that are imported from outside the European Union (EU) to be processed and exported outside the EU. By reducing the cost of imported inputs, IP places EU businesses on an equal footing with businesses outside the EU. Sole traders, partnerships and incorporated bodies established in any EU country can use IP subject to authorisation by HM Revenue & Customs. It can be used even if you're acting as a representative for another body established outside the EU. Without representation, non-EU bodies can only use IP for non-commercial imports.
This guide shows you how to find out whether IP applies to you and how to start using it if it does. The guide covers the two types of IP, how to apply for IP authorisation, and the steps involved in importing, transferring and exporting goods under IP. It also provides links to sources of further help and information.