Inward Processing Regime
The inward processing regime allows you to import the inputs of the product you will export without paying customs duty or VAT — for an exporting manufacturer it is one of the strongest cost advantages in the legislation. But the regime rests on an undertaking: if you do not process and export what you imported within the period, all the deferred duties come back with interest and a penalty. We manage that balance on your behalf, from the certificate application through to closing the undertaking.
Certificate application, waste and yield rates
The heart of the application is the yield and waste rates showing how much export product will emerge from the imported input. If these rates are not set realistically, you either take on an undertaking you cannot close or forgo part of the exemption you are entitled to. We build the application around your production reality and your export projections, and handle revisions where they become necessary.
Imports and exports under the certificate
We lodge your import and export declarations under the certificate in full alignment with it in terms of HS code, quantity and value, and track the deductions on every operation. A declaration that exceeds the scope, or whose link to the certificate is never established, creates a gap at the closure stage that cannot be undone.
Conditional exemption and guarantee management
Under the conditional exemption system, duties are not paid but secured by a guarantee. We calculate the guarantee amount correctly, assess the available reduced-guarantee options, and track the prompt release of the guarantee on closure as a separate work item.
Time limit and deduction monitoring
The certificate period is the calendar against which the undertaking is measured. We report your import and export deductions regularly and, as the deadline approaches, tell you how much remains outstanding and whether an extension application is needed — before you have to ask.
Closing the undertaking
Before the period expires we produce your undertaking account and prepare your closure file in full — including imports, exports, waste and secondary processed products. Our aim is not merely to close the file, but to close it leaving no room for sanctions or retrospective assessment.
Frequently asked
A complete file submitted through the electronic application system is usually concluded quickly; what really extends the process is incomplete annexes such as the capacity report, the yield rate calculation or an expert appraisal. That is why we build your application file complete from the outset and give you a realistic range for how long it will take.
An undertaking that cannot be closed leads to the customs duty and VAT you did not pay on import being collected with default interest, and to a penalty being imposed on top. To avoid that outcome we monitor your undertaking account throughout the period and, before the gap grows, put an extension, a certificate revision or alternative solutions on the table.
Under conditional exemption, duties are never paid; they are secured by a guarantee that is released once the export takes place — in cash flow terms this is the most advantageous route. Under the drawback system, duties are paid on import and refunded after export. Which suits you is determined by the length of your production cycle and your cash structure; we make that decision together.
Waste and secondary processed products arising in production (shavings, scrap, by-products) are taken into account in the undertaking account under rules defined in the legislation. Failing to declare these items correctly is one of the most common causes of a shortfall in the closure file; we set the calculation up correctly from the start.