Customs processing
procedure

Inward Processing Regime

It is used when goods are brought into the territory of the Union from third countries without having to pay import duties (tariffs) and VAT, in order order to be used in one or more processing operations, to be subsequently exported.

What are the requirements to apply?

According to the Tax Agency, these are the requirements that the interested party must meet: He must be established in the customs territory of the Union. However, the customs authorities may occasionally, when they consider it justified, grant a final destination authorisation to persons established outside the customs territory of the Union..

it provides the necessary security as regards the proper conduct of operations. AEOs for customs simplifications are deemed to fulfil this condition.
They provide a guarantee in accordance with Article 89 of the CCC. They carry out or has carried out the the goods transformation operations.

How to apply?

The interested party himself or, failing that, his representative must apply for a customs authorisation at the Tax Agency by presenting the official form. Depending on factors such as the type of processing, value and frequency of operations, there are are two types of procedures..

➔ The simplified procedure. The acceptance of the customs declaration itself at the time of import constitutes the application for authorisation. It is used for occasional operations with quantitative limits.

The normal procedure. The application is made in advance to the Tax Agency in accordance with the model established by the responsible authorities.

Outward Processing Regime

This is the opposite of the inward processing regime, i.e. it consists of the temporary export of goods from the territory of the Union to third countries, , where the goods will undergo processing operations and then be re-imported again with total or partial exemption from paying import duties and VAT. Its main advantage is to be able to carry out operations that cannot be carried out in the country itself due to the established regulations, or because the costs of doing so in another country are lower.

What are the requirements to apply?

According to the Tax Agency, these are the requirements that must be met:

➔ That it is established in the Customs territory of the Union.
➔ It must offer the necessary security with regard to the proper execution of operations. AEOs for customs simplifications are deemed to fulfil this condition.
➔ It provides a guarantee in accordance with Article 89 of the CCC.
➔ It must be registered, i.e. it must have an EORI.
➔ The application must be submitted to the competent authority to take a decision.
➔ No outward processing authorisation of the same applicant has been cancelled or revoked for not complying the obligations of the authorisation during the year preceding the application.

How to apply?

The interested party himself or, failing that, his representative must apply for a customs authorisation at the Tax Agency by presenting the official form.

Depending on factors such as the type of processing, value and frequency of operations there are two types of procedures:

➔ The simplified procedure. . The acceptance of the customs declaration itself at the time of importation constitutes the application for authorisation. It is used for sporadic operations with quantitative limits.

The normal procedure. The application is made beforehand to the Tax Agency, according to the model established by the responsible authorities.