Inward Processing
In brief: Inward Processing lets you import goods into the UK for processing, manufacturing or repair with Customs Duty and import VAT suspended. Re-export the finished goods and those charges never fall due; release them to the UK market and duty is calculated under the rules of the procedure. Done properly, it’s one of the most valuable reliefs in customs — and our team supports it end to end: 01273 426 168.
By the Courier Express customs team · Last reviewed 30 September 2026 · General information, not legal advice — always check current GOV.UK guidance for your goods.
What Inward Processing does
Normally, importing goods into the UK triggers Customs Duty and import VAT at the border — even if the goods are only here to be worked on. Inward Processing (IP) suspends those charges while the goods are processed, manufactured, repaired or even just examined. If the resulting products are re-exported, the suspended duty and VAT are never paid. If some or all are released into the UK market, the charges become payable under the procedure’s rules.
For manufacturers, repairers and businesses with international supply chains, that difference is real money: no duty tied up in goods that were never destined for the UK market, and better cash flow on everything else.
Authorisation — the part that trips people up
IP is an authorised special procedure. There are two routes in:
- Full authorisation from HMRC — the right answer for regular use. It requires an application, records that show what happened to the goods, agreed throughput periods, and discharge of the procedure (typically by re-export) evidenced through a bill of discharge.
- Authorisation by declaration — a one-off authorisation made on the customs declaration itself, intended for occasional use and subject to conditions and limits. Useful for a genuine one-off; the wrong tool for a repeating flow.
HMRC may require a guarantee for the suspended charges, and the procedure carries genuine record-keeping obligations. The relief is generous precisely because the compliance is real — which is why having your customs partner involved from the start matters.
Where IP earns its keep
- Importing components for manufacture and re-exporting finished products.
- Repairing customers’ goods from overseas and returning them.
- Processing, testing, sorting or repacking goods destined for other markets.
How Courier Express supports it
We handle the declarations that place goods under the procedure and discharge them from it, keep the paperwork consistent from entry to re-export, coordinate the transport both ways, and flag anything that could put the relief at risk — before it does. Where full authorisation is the right route, we’ll help you understand what HMRC will expect.
Duty suspended, compliance handled
Thinking about Inward Processing — or already authorised and wanting it run properly? Talk it through with the team that will handle the declarations and the transport.
Inward Processing questions, answered
Do I ever pay the suspended duty?
Only if goods are released into the UK market instead of being re-exported — then duty and import VAT become payable under the procedure’s rules. Goods that are processed and re-exported discharge the procedure without those charges.
Do I need authorisation before importing?
Yes — either a full HMRC authorisation (for regular use) or a one-off authorisation by declaration for occasional use, which carries conditions and limits. We’ll advise which fits your flow.
What records do I need to keep?
Records that trace the imported goods through processing to discharge — what came in, what was done, what left and when. A bill of discharge evidences that the procedure was completed correctly.
Can repairs use Inward Processing?
Yes — repair is a classic IP use: import the goods with charges suspended, repair them, re-export them, and the suspended duty and VAT never fall due.
Is Inward Processing worth it for small volumes?
Sometimes — authorisation by declaration exists for occasional use. For a genuine one-off it can work well; for anything repeating, full authorisation is usually the better answer. A free consultation will tell you quickly.
Authoritative sources
- GOV.UK — Apply to delay or pay less duty on goods you import to process or repair
- GOV.UK — Using inward processing to process or repair your goods
- GOV.UK — Using a special procedure without a prior authorisation
- GOV.UK — Pay less or no duty on goods you store, repair, process or temporarily use
Part of our Customs Services. Sending goods the other way? See Outward Processing.
Importing goods to process or repair?
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