How Inward & Outward Processing could save your business thousands – Lancashire firms are already cutting costs and boosting efficiency. Don’t miss your chance to benefit!

Lancashire businesses that trade internationally could save money on VAT and import duties by using two helpful customs schemes: Inward Processing (IP) and Outward Processing (OP).

Inward Processing (IP) lets UK companies bring in goods from other countries for processing or repair without paying import duties or VAT straight away. These charges are only paid if the goods stay in the UK. If they’re sent out of the country again, no duties are due.

Inward Processing offers substantial savings for manufacturers that provide warranties to their export customers, particularly when products need to be returned for repair. Since the goods are re-exported after repair, the UK business is not required to pay import duties, reducing overall costs.

Outward Processing (OP) is the opposite. It allows businesses to send goods out of the UK to be processed or repaired in another country. When the goods are brought back to the UK, the business pays less or no duty, but only on the value that was added during processing, not the full value of the consignment.
For instance, a UK clothing brand might send fabric to India for stitching and then pay duty only on the added value when the finished garments are returned.

To use either scheme, businesses must be registered in the UK and implement robust customs controls throughout their supply chain. Goods sent abroad for processing must return within a set time, and quality checks are required.

Mandy Lockett, International Business Director –
“These schemes are a great way for businesses to cut costs and improve cash flow. In a global economy, it’s important to use every tool available to stay competitive. Both options can help businesses defer or eliminate duties and VAT when dealing with international processing or repair”.

In short:

• IP = Import goods, process / repair them, then re-export
• OP = Export goods, process / repair them abroad, then bring them back

How can the Chamber help your Business?

Our half-day course on Inward Processing and Outward Processing equips participants with the knowledge and practical insights needed to manage these schemes efficiently, for your own business, enabling you to clarify issues specific to your own operations.

To book onto the course, please click HERE.

Understanding customs regimes like Inward and Outward Processing can be challenging, but our expert Chamber team is on hand to make it simple. We’ll help you make sense of the rules and maximise the benefits for your business!