Inside Inward Processing: how to suspend import duties and taxes

In CAS, you get an overview of all inbound and outbound movements on an item, as well as how they are composed in a larger item. The outbound shipment is linked to the MRN of the inbound shipment(s) for the incoming goods, creating a track record of the goods.

Your Inward Processing authorisation, obtained from the customs authorities, will be valid for a certain period stated on the authorisation itself (usually three to five years). During this period, the IP authorisation can be used for bringing goods in the IP procedure as well as taking goods out of the procedure.

We would suggest to reach out to a compliance consultant as this is quite complex and has to do with authorisation applications rather than IP itself.

Serial numbers can be tracked if needed. It is not mandatory, though. CAS does FIFO picking if requested to optimise the write-off of the oldest declarations first.

In our experience, batch number tracking in addition to the Item ID/SKU tracking is prevalent for pharmaceuticals or other materials that are subject to other government agency reporting, such as the European Medicines Agency.

Inward Processing may be suitable for special procedures to bring in finished goods that require work to be done that will be re-exported. As long as goods never enter free circulation (work is done, and then the equipment is re-exported), you would avoid duties and VAT.

This would likely depend on your authorisation: if the CW and IP are under the same authorisation, you wouldn't need to move under transit, you would just need to indicate that goods have moved from one authorisation to another. However, if there are 2+ authorisations, a transit may be required.

CAS will create a BOD report that must be filed by the importer. It will not be submitted electronically at the end of the discharge period.

If the glue is classed as free goods, you don't have to track them. If not, the same as for the other parts, but then based on the amount of grams on average you use per golf club.

AEO is not required for an IP authorisation.

It is always the entity that does the production or the production on behalf of someone who holds the authorisation.

Well spotted! This is due to it being shown in our demo environment.

The commodity codes for which processing under IP is allowed, are part of the application process of the relevant customs authority.

The person who imports the goods is always responsible, even if done by a broker.

Goods moving between IP authorisations can be done with a transit or TORO document.

This is difficult to explain in a brief answer, but proving the origin of goods within the given timeframe is not always possible.

Please refer to: https://taxation-customs.ec.europa.eu/system/files/2016-09/2267-final_en.pdf

The purpose of Inward Processing is to defer the payment of duties on goods imported into the EU (or GB) or to avoid the payment of duties on goods that are re-exported. Contrary to this, CBAM is looking to track the cost of carbon on goods produced outside of the EU but get imported into the EU.

If you are importing raw materials or finished goods that are a CBAM category directly into free circulation in the EU, then IP would not apply.

If you are importing raw materials or finished goods that are a CBAM category directly into an IP procedure and re-exporting them, there would be no CBAM impact because the goods never entered EU commerce.

If you are importing raw materials that are a CBAM category into the IP and then manufacturing them into a finished good that will enter EU commerce, the CBAM certificates may apply: this should be reviewed with your compliance consultant and Customs authority.

It will give the same benefits for CBAM as it does for duties. The BOD is a good reporting tool for this and the future reporting needs for CBAM.

Yes, CAS can do retro-active uploads for imports and exports.

Yes. This is one of the basic requirements for IP.