Rules and processes
Information on rules and processes.
Inward processing allows private individuals and traders to suspend customs duty and import VAT on goods that they import from outside the UK for processing or repair. If the processed inward processing goods are re-exported outside of the UK the duty and import VAT liability is discharged, no duty or VAT to pay. Alternatively, the processed IP goods can be discharged by release to free circulation within the UK paying the duty and VAT due.
For example, an importer imports sheet metal into the UK under the IP arrangements, they then process that metal into a product such as a car chassis before exporting the good without payment of customs duty or import VAT. They will pay Import duties including import VAT if they discharge those goods into free circulation. The duties they will pay can be based on the goods at import, or the final product after processing.