Watch now

The Ins and Outs of Inward Processing

HubSpot Video



Frequently asked questions

All your questions answered by our speakers and C4T experts!

Can I manage Inward Processing in my own existing systems?

In theory, you can manage everything by yourself. But since with IP, so many things are involved: stock management, the linked declarations, discharge reports at the end of the discharge period, bonded vs free stock, product composition, stock write offs, etc. in practice it’s impossible to run it in your own systems. You will need a customs solution specialised in Special Procedures to leverage the advantages of IP. 

How does it work in the warehouse? Do I need to physically separate bonded goods from free goods?

You don’t. In CAS, you can set up storage locations in your organisational structure, that are either physical and/or virtual locations to manage your stock. Based on these storage locations, you can then identify the stock levels and define write off rules.  

Can I start with IP tomorrow?

First, you need to request an IP customs authorisation with the customs authorities, what can take up to a few months. When you have received the authorisation however, you can reclaim duties retroactively.  

What is the procedure of applying for IP?

You should first request an IP authorisation with the customs authorities. Then you need to decide which software provider you would choose to enable the required declarations, stock administration and reports.  

How do I submit a Bill of Discharge since the transfer from CHIEF to CDS (if different)?

At the end of the discharge period, the Bill of Discharge will be automatically created in CAS, which can then be provided to the relevant customs authorities.  

How does CAS deal with tracking the products in case the equivalence is not allowed to be used?

Equivalence needs to be set up in one of the decision tables in CAS. As long as you don’t configure equivalence in CAS, CAS will not take it into account. If equivalent goods have been set up, CAS will take that into account. 

Equivalence and duty drawback in relation to FTA's?

We have set up a list of no-drawback countries in CAS that can be applied automatically based on certain criteria. 

How would you declare IP on CDS?

As CAS is fully integrated with CDS, you just need to make sure to send your shipment information to CAS, and the system will do the rest to make sure it’s filed correctly in CDS.  

Is Inward processing relief possible for non-established businesses?

No, you need to be established in the EU or the UK. 

What is the minimum amount of 'processing' that can be done to qualify for IP?

It must be more than minimal operations. There is an extensive list of operations that are allowed under IP, published by the respective customs authorities (e.g. HMRC). 

What is the total length of time you could hold goods under IP? Could this be as long as 24 months?

The standard time that HMRC attributes is 6 months, but you can attribute another length as well, as long as it is justified and approved by the customs authorities. 

What about re-exporting to FTA countries and its special regimes?

This needs to be checked for the respective FTA independently.  

How long is the application and approval time period?

Contrary to the EU, the UK is relatively fast. You need to apply via the Government Gateway, with a fairly limited application form. The officer responsible for Special Procedures will usually come back in a few weeks to ask more questions in a survey and with some required documentation to be provided 

How does HMRC evaluate the ins and outs, if you import products and send them back after processing at different intervals that would require submitting imported parts on the BoD in different periods?

It's the advantage of a customs software that can track which goods haven’t been discharged yet, and they get discharged automatically at the end of the discharge period.