New Requirements for Inward Processing Authorisations (IP)

What is Inward Processing?

The Inward Processing procedure allows companies to process, repair, or modify non-EU goods within the EU without paying import duties immediately. The processed goods can then either be re-exported or released for free circulation with duties applied only to the processed product.

What’s New?

1. Mandatory INF Data Exchange
   For cross-border operations, companies must now submit information via the electronic INF (Information Sheet) system. This digital form is required when more than one EU Member State is involved. Note: the system still has some operational issues in practice.
   
2. Application via EU Trader Portal
   All IP authorisation requests must now be submitted through the EU Trader Portal. This centralises and standardises the application process across the EU.
   
   
3. Stricter Economic Conditions
   Customs authorities will apply stricter checks to ensure companies meet the economic criteria for using the IP procedure. This is aimed at preventing misuse and protecting EU-based producers.
   
4. Stronger Internal Controls and Guarantees
   Businesses must demonstrate that their administrative systems and internal controls meet customs standards. In most cases, financial guarantees (such as customs bonds) will be required.
   

What Does This Mean for Businesses?

These updates may require you to adjust your internal processes, particularly around application procedures and compliance monitoring. While this may involve some short-term effort, the aim is to support more efficient and transparent customs procedures across the EU.

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