Outward processing

Special customs regime on the export of goods outside the European Union for their transformation or repair in a third country before their re-import

What is outward processing ?

Outward processing is a special customs regime set out by Community law within the European Union (EU). It allows goods to exported outside the EU so they can be worked on, assembled, transformed or repaired before the products are re-imported with full or partial exemption of import fees. This is the opposite regime to inward processing.

The outward processing regime has been created to allow companies to benefit from lower labour costs or specific technical experience in other countries outside the EU.

The characteristics of outward processing

To be authorised, the placement of goods under an outward processing regime must meet 2 criteria:

• the exported goods must be able to be identified in the composition of the reimported product ;
• the issue of the authorisation must not harm the essential interests of community processors.

Companies wishing to benefit from the customs regime must make an application to the customs service. In France, authorisation is requested online using the SOPRANO platform managed by the French customs services.

Examples and application

How the outward processing regime works

The placement of goods under the outward processing regime requires a temporary export declaration.

In the event of triangular traffic, in which the placement office differs from the clearance office, an information bulletin must be created using the European INF STP portal. This means the different offices can be informed of the placement.

Clearance of the outward processing regime

A clearance period is set by the customs service based on the time required for the opening of the goods and their transport. This period can be extended with a justified request from the authorisation holder. If the clearance period expires, the operator is subject to import fees with no chance for exemption.

Clearance of the regime then takes place with the filing of the re-import declaration. Customs fees and value added tax (VAT) applied to reimported products are calculated based on the value of the products reimported relative to the value of the goods at the time of their export.

Monitoring of the outward processing regime

In exchange for the benefits granted, a monitoring regime is required to allow the customs service to monitor use of the regime.

This customs monitoring requires the following from operators:

• the keeping of records relating to the regime ;
• the presentation of a clearance statement to the control office by the deadline indicated by the authorisation for outward processing.

Outward processing in figures

Regulatory framework

• Regulation (EU) No 952/2013 of the European Parliament and of the Council laying down the Union Customs Code (UCC) and notably its articles 210-225, 255 and 259-262.
• Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015 supplementing Regulation (EU) No 952/2013 of the European Parliament and of the Council as regards certain provisions of the UCC (RDC) and notably its articles 163, 164, 166, 169, 171-174, 176, 178, 179, 181, 240, 242, 243.
• Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015 laying down detailed rules for implementing certain provisions of Regulation (EU) No 952/2013 of the European Parliament and of the Council laying down the UCC (REC) and notably its articles 259-264 and articles 266, 267, 268 and 271.

Commission Delegated Transitional Regulation (EU) 2016/341 of 17 December 2015 supplementing Regulation (EU) No 952/2013 of the European Parliament and of the Council as regards transitional rules for certain provisions of the UCC when IT systems concerned and still not operational and modifying the RDC (RDTC) and notably its annex 12.