Inward Processing (IP)
Inward Processing (IP) – Enables companies to import goods into the UK for processing with relief from customs duties and VAT, provided the goods are later re-exported or released under certain conditions.
Inward Processing authorisation is a customs procedure that allows businesses to import goods into the UK for processing or repair with customs duties, VAT, and other import taxes suspended. After the goods are processed, they can either be re-exported or released into the domestic market, with taxes only paid at that point if applicable. The IP procedure is commonly used by manufacturers and processors who need to import raw materials or semi-finished products to create goods for export.
Example:
A UK company imports material from outside the UK to manufacture coats. Under IP, the company can import the material without paying customs duties or VAT. After manufacturing the coats, if the company exports them outside the UK, no duties or VAT are due. If the coats are sold within the UK, duties are paid on the value of the material and any applicable processing.
At Bluebell Customs, we’re here to help you navigate the different approval options available and make sure you’re fully prepared. We can assist with adjusting your systems and processes to smoothly manage the approval. From drafting and submitting your application to filling out questionnaires and preparing any supporting documents.
With our professional approach and attention to detail, we ensure that your approval process is handled efficiently and successfully.