Apply to delay or pay less duty on goods you import to process or repair
Source: gov.uk (2025-07-15)

Use inward processing to delay or reduce import duties or VAT on goods that you process or repair.

If you’re authorised to use inward processing to process or repair your goods, you’ll not need to pay Customs Duty and import VAT on goods that you import from outside the UK and then re-export from the UK.

If you keep the processed goods in the UK, you may have to pay Customs Duty and import VAT. This may be a reduced amount if the duty rate for the processed goods is lower than for the imported goods.

You can also delay paying excise duty on goods you process, but you’ll have to pay the duty if you release the goods into free circulation.

Who can apply

To apply for inward processing, you’ll need to:
- be established in the UK (https://www.gov.uk/guidance/check-if-youre-established-in-the-uk-or-eu-for-customs)
- have an EORI number (https://www.gov.uk/eori)
- not have a poor history of compliance with customs requirements
- check if you need a guarantee (https://www.gov.uk/guidance/import-and-export-customs-comprehensive-guarantees-ccgs)
- check if you need an import licence (https://www.gov.uk/starting-to-import/import-licences-and-certificates)
If you’re not established in the UK:
- we’ll consider an application to use inward processing for non-commercial imports
- you’ll need to be fully authorised
Before you apply

You’ll need to gather this information before you apply:
- your goods’ commodity code (https://www.gov.uk/trade-tariff) (this will be at least 4 digits, or 8 digits for equivalence goods (https://www.gov.uk/guidance/using-similar-goods-to-replace-customs-special-procedure-goods))
- how you’ll value your goods if you release them to free circulation
- the number and value of goods you’re going to process
- the process you’re going to carry out
- how long it’ll take you to process the goods
- the number and value of products you’ll make
- the rate of yield
- what records you’ll keep and where you’ll keep them
- where you’ll enter the goods to inward processing
- where you intend to discharge them from inward processing
- names and addresses of anyone else that will be processing or repairing goods, for example sub-contractors
How you’ll value your goods if you release them to free circulation

Any duty you pay will be based on either the value of the:
- goods at import
- final product
You’ll be asked to tell us, when you apply for authorisation, how you’ll be valuing your goods if you release them to free circulation. You may be able to change your method of valuation later. Usually, the choice will be yours but sometimes we’ll have to tell you which method to use. This will depend on:
- the goods you import
- what process you intend to carry out
- the economic impact of your authorisation on the UK
The number of goods you’re going to process

You’ll need to calculate the number of goods you want to import over the period of your authorisation. This will be up to:
- 3 years for sensitive goods
- 5 years for all other goods
Sensitive goods are those that will have the biggest economic impact on the UK.

Check if your goods are sensitive when declaring to inward or outward processing (https://www.gov.uk/guidance/check-if-your-goods-are-sensitive-when-declaring-to-inward-or-outward-processing).

The process you’re going to carry out

You’ll need to tell us what you’re going to do with the goods you import. You do this by giving us the following details for the goods:
- which economic code you’ll use (https://www.gov.uk/guidance/get-an-economic-code-to-apply-for-inward-processing)
- the commodity codes
- description of the goods
- quantity and value of the goods
How long it will take you to process the goods

You’ll need to work out how long it will take you to process the goods you import.

You should tell us the maximum length of time it takes to carry out each process.

The number of products you’ll make

The products that you intend to make are known as the ‘processed products’. There are 2 types of processed products:
- main processed products are the goods you’re applying to make
- secondary processed products are by-products of the processing operation, they’re not production losses, waste or scrap
You must calculate the number of main and secondary processed products you’ll make. You should do this by using the ‘rate of yield’.

Rate of yield

You’ll need to tell us your expected ‘rate of yield’. This is the number of processed products made from the quantity of goods you enter to inward processing.

For example, if you simply repair and return goods, the rate of yield will be 1:1.

If you import 300 metres of cloth to produce 100 identical items of clothing, the rate of yield will be 3:1.

If you’re running more than one processing task, each will have its own rate of yield.

Examining the economic conditions of your authorisation

Depending on the goods you import and, in some instances, the method you choose for calculating any duty that is due, your application or authorisation may be examined to make sure it does not disadvantage UK producers.

If your application is considered to have an impact on UK producers, the application may have to be amended or you may have to withdraw it.

If you already have an authorisation and it is decided that it has an impact on the UK, it may have to be amended or cancelled.

Relief for production accessories

You can also use inward processing to get relief on goods that help in the processing of your goods but are not found in your final products. You can get relief even if they’re totally or partially used up. For example:
- chemical reaction accelerators, retarders or arresters
- goods that you need to protect products during processing
- goods that you need to create the right environment for the performance of processing operations
You cannot get relief on:
- fuels or energy sources other than those you need for testing products you make or for detecting faults in goods you import for repair
- lubricants other than those you need for the testing of products you make or their adjustment or withdrawal
How to apply

There are 4 types of authorisation you can get to use inward processing:
- full authorisation
- retrospective authorisation — this is a full authorisation where you request the start date to be before the date of application
- authorisation by declaration
- authorisation that covers Northern Ireland and the EU
You should apply for authorisation at least one month before you intend to import your goods except when you apply for authorisation in your declaration. This will give us time to process your application. If we need longer we’ll contact you with a new date.

Full authorisation

A full authorisation allows you to use:
- inward processing regularly
- simplified declarations to import or export your goods
- inward processing if you import non-commercial goods and you’re not established in the UK
You should apply at least one month before you start importing as we need this time to process your application. If we need longer, we’ll contact you with a new date.

You may need to provide a guarantee to cover amounts of duty and VAT that will be suspended.

To apply online for authorisation (https://www.tax.service.gov.uk/digital-forms/form/application-for-inward-processing-relief/draft/guide), you’ll need to sign in. If you do not have sign in details, you’ll be able to create them.

If you cannot do this online, you can use the inward processing print and post form (https://public-online.hmrc.gov.uk/lc/content/xfaforms/profiles/forms.html?contentRoot=repository:///Applications/SpecPersTax_C/1.0/BRSP3&template=SP3.xdp).

Retrospective authorisation

You can ask for an authorisation after you’ve imported your goods, even if you’ve already exported them. We’ll only authorise you in exceptional circumstances and where we’ve not given you a retrospective authorisation in the previous 3 years.

You’ll need to show us records to prove that:
- the goods are eligible
- you have a business need
- you’ve followed the inward processing procedure properly
- there are reasonable grounds that stopped you from getting prior authorisation — a lack of knowledge alone does not qualify as reasonable grounds
You’ll also need to send us a:
- letter saying why you need this type of authorisation
- list of imports you want to include in the retrospective period
The maximum period for a retrospective authorisation is 12 months before the date you apply on. Where the goods are sensitive, the maximum period is 3 months.

If you’re asking to retrospectively renew an expired authorisation, a retrospective authorisation can be backdated to the date the previous authorisation expired. If we grant the authorisation, you’ll have to amend your declarations and update your records.

To apply online for authorisation (https://www.tax.service.gov.uk/digital-forms/form/application-for-inward-processing-relief/draft/guide), you’ll need to sign in. If you do not have sign in details, you’ll be able to create them.

If you cannot do this online, you can use the inward processing print and post form (https://public-online.hmrc.gov.uk/lc/content/xfaforms/profiles/forms.html?contentRoot=repository:///Applications/SpecPersTax_C/1.0/BRSP3&template=SP3.xdp).

Authorisation by declaration

You can apply for authorisation in your import declaration at the border.

You can do this up to 10 times in a rolling year for goods valued up to £500,000 for each import.

You cannot do this if any of the following apply:
- you’re using simplified customs declarations (https://www.gov.uk/guidance/using-simplified-declarations-for-imports)
- you’re asking for a retrospective or backdated authorisation
- your goods are subject to anti-dumping duty
- you’re using economic codes 5, 6, 7, 8 or 12
- controlled goods like arms, ammunition or chemicals that will be made into drugs
- works of art, collector’s pieces and antiques
- excise goods
- meat for airline meals
- catalysts, agents or items that help to manufacture or process goods for export
You will usually need to provide security for Customs Duty and import VAT. When the procedure is discharged, the security will be refunded minus any charges due.

You cannot apply for this type of authorisation if you have a Rural Payments Agency certificate that covers you for importing a certain amount of goods. If you want to import goods with a certificate, you’ll need a full authorisation.

Authorisation covering Northern Ireland and the EU

If you carry out work on your goods over sites in both Northern Ireland and the EU, you can get a single authorisation rather than having one for each site.

You need to apply for this type of authorisation by emailing xxx@xxx.xx (mailto:xxx@xxx.xx).

We’ll need your:
- name
- contact email address
- address of your Northern Ireland operation
- EORI number starting XI
We’ll reply within 5 days and provide a link to the EU Customs Trader Portal where you can access the application form.

If your application is successful then, whenever you use your inward processing or outward processing authorisation, you’ll need to submit a standardised exchange of information using the EU Customs Trader Portal (https://www.gov.uk/guidance/using-customs-special-procedures).

After you apply

We may need to contact you after you apply. This could be to request additional information or to organise a site visit.

If any of your contact details change (for example, your address or telephone number) you must let us know by email or by writing to the address on the acknowledgement letter we sent you.

We may delay or refuse your application if you do not provide all the information we need to complete it.

After we’ve considered your application, we’ll send you a letter telling you if we’ve approved your application or not. If you do not get approval, the letter explains the reasons why and tells you about the review and appeals procedure.

When we authorise you, you’ll get a letter that sets out the authorisation conditions.

Conditions include things like:
- notifying us of how the goods have been disposed of
- paying Customs Duty and other charges
- keeping detailed records
Find out how to use certain goods with inward processing (https://www.gov.uk/guidance/using-inward-processing-to-process-or-repair-your-goods).

How to cancel or amend your authorisation

You can cancel or amend your authorisation by email or by writing to the address on the acknowledgement letter we sent you.

You should also write to us if there has been a change to your business which may affect your authorisation, such as:
- changing your trading name or your trading address
- being taken over by another business
Other ways to pay less duty or import VAT

Find out more information about other ways to:
- reduce the amount of Customs Duty or import VAT (https://www.gov.uk/guidance/check-if-you-can-pay-a-reduced-rate-of-customs-duty) you need to pay
- delay the Customs Duty or import VAT (https://www.gov.uk/guidance/check-if-you-can-delay-customs-duty-and-import-vat) so you do not pay it when goods arrive in the UK