Outward processing is one of the customs procedures. By using this procedure, it is possible:

1. to transfer Community goods from an EU country to a country outside the EU, in order subsequently
2. to have the goods treated (undergo a processing operation) in the country outside the EU, and finally
3. to release the treated goods (the compensating products) into free circulation in the EU under a full or partial exemption of duties

Processing operations
The following are classified as processing operations:

• the working of goods, including mounting, assembly and adjustment to other goods
• the processing of goods
• the repair of goods, including overhaul and tuning

Exemption from VAT, excise duty and consumption taxes
Under the outward processing procedure, no exemption can be granted from the excise duty and consumption taxes owed upon the import of the compensating products. An exemption from VAT can only be granted if the goods temporarily exported were exported from the respective EU export member state. The trade policy or agricultural policy measures should be applied in any case.

Outward processing authorization and declaration
If you want to use the customs procedure for outward processing, you will have to apply to Customs for an authorization.

The application for the authorization can be made by the natural person or legal entity that is based in the EU and has the processing operations performed outside the EU.
If you want to have a once-only consignment processed, you can also apply for the outward processing authorization in the declaration.

Following the processing operations outside the EU, the compensating products return to the EU in order to be re-released into free circulation. At this point, there are 2 possibilities:

• You are granted a full exemption; you do not pay any import duties. A full exemption from import duties will be granted if the processing operation comprised a free repair of the exported goods. Repairs made under a guarantee scheme are an example of this.
• You are granted a partial exemption; you pay a part of the import duties. A partial exemption from import duties will be granted in cases other than that described above. In that case, the import duties are normally calculated as follows:
• the import duties for the (compensating) product to be released into free circulation, minus
• the import duties for the product temporarily exported, equals
• the amount payable

In special cases, the import duties can be calculated on the basis of the price that was paid for the processing operation outside the EU.