Processing traffic

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The processing trade is a customs law procedure in which preliminary or raw products are exported from an economic area in order to be further / final processed ("refined") in the foreign economic area, and are then imported back into the original economic area.

One speaks of "outward processing" for the sending part whose goods are processed abroad, and of "inward processing" for the receiving part in whose domestic economic area this happens.

Typically, the sent goods are lost during processing and a new product is created during processing (example: fabric becomes clothing). The new product is subject to customs duties when it is re-imported from abroad. However, there are rules for levying the duties so that the value of your own - shipped - goods are not charged again with customs payments, or not charged in full, when they are re-imported.

Inward processing

The use of inward processing, i.e. import into the area where the preliminary products are processed, requires prior authorization from the responsible customs office. For this, the processor must meet certain requirements. Approval can only be granted if the products to be processed are approved for processing. The licenses are subject to a limitation of the products to be introduced.

The goods can be refined for the following purposes:

  • Processing: The goods are retained individually , i. i.e., the essential characteristics remain. This is e.g. B. the case when dyeing fabrics and staining furniture.
  • Processing: The goods are substantially retained and lose their individuality. This is the case when e.g. B. flour is introduced and processed into bread with other substances.
  • Mending: The goods are mended, repaired or parts replaced.
  • Production auxiliaries: The goods represent production auxiliaries for the finishing of goods, i. In other words, their economic value goes into the finished products, but their substance is retained (e.g. casting molds)

Outward processing

In contrast to inward processing, the outward variant involves a delivery to a third country where processing (by processing, processing or mending / repairing) takes place. An example would be crabs that are exported with their shells and peeled abroad in order to be re-imported afterwards.

There are two different methods of calculating import duties:

  • Differential customs clearance
  • Value added customs clearance