Benefit of outward processing
Information on the benefit of outward processing.
The procedure allows for:
- goods to be temporarily exported to undergo processes
- defective goods to be returned to a third country for repair
- replacement with equivalent goods under the standard exchange system.
Outward Processing is not allowed for the following:
- where the export results in a repayment or remission of import duty
- the goods were, prior to export, released to free circulation at an authorised/end use rate but the goods have not been put to an authorised use (other than repair)
- goods where their export results in an export refund
- where any other financial advantage under UK Agricultural Policy is obtained by the export of the goods
Examples of usage of outward processing
- defective goods may be exported for repair or replacement under standard exchange system
- processed or repaired goods may be re-imported with total or partial relief from duty
- op may be used to import replacement goods before the goods they are replacing have been exported – this is prior import of replacement products
- inward processing (IP) goods may be temporarily exported under OP, but this would require the person to be authorised for both the OP arrangements and the IP arrangements. Any duty due on the process or repair is added to the amount suspended when the goods were originally imported to IP