The outward processing system allows for the temporary export of Community goods out of the customs territory of the Community to undergo processing and re-import the compensating products with total/partial exemption from import duties.

The system is aimed at allowing European companies to undertake work in non-EU companies, taking advantage of lower labour cost than that practiced in Europe, or to take advantage of more advanced technologies.

 

Specifications and methods of use

The outward processing procedure must be authorized by the customs office at the headquarters of the operator requesting the authorization.

The authorization is issued when it is possible to ascertain that the products obtained (compensating products) are the same as those resulting from the processing of goods in temporary export. The goods are then identified upon export through samples, photos, serial numbers, etc..

Upon re-importing the compensating products, customs duties (duty and VAT) are paid for the greater value acquired by the goods as a result of processing or transformations received abroad (processing fee).

Under the outward processing regime, it is possible to undertake the following operations:

  • transforming of goods;
  • processing of goods including assembly, installation, adjustment to other goods;
  • repairing of goods including refitting and tuning.

In this case, it is possible to re-import spare products by equivalence (standard exchange system). Products imported to replace those sent for repair must be classified under the same tariff subheading and bear the same commercial purpose and technical characteristics as the goods sent for repair. Spare products can also be imported prior to temporary export.

 

Reference legislation:

Art. 84/90 and 145/160 of Reg. (EEC) 2913/1992 (the Community Customs Code);

Art. 496/523 and 585/592 of Reg. (EEC) 2454/1993 (Application provisions of the Community Customs Code).

 

Domestic provisions and documents of administrative practice:

Directorial determination prot. n. 1249/UD of 18 July 2001;

Circular no. 30/D of June 28, 2001;

Circular no. 55/D of 20 August 2002.