Understanding outward processing relief: What firms need to know
Taking advantage of reduced labor costs and technical skills outside of the EU can be an advantageous way of having goods processed or repaired. Businesses can then face heavy duties when they’re re-imported, negating many of the savings made.
Outward processing relief (OPR) is one way to get around this, with full or partial relief on import charges. It requires permission from customs authorities and can’t be applied to excise goods, but when used correctly, OPR can be a useful strategy for many firms.
What is outward processing relief?
Outward processing is the way in which goods can be temporarily exported from the EU to undergo certain operations, before being re-imported and released for free circulation. Ordinarily, these goods would be subject to import duties, but OPR offers total or partial relief.
Some goods are exported to be repaired free of charge under a contractual obligation or because of a material defect that occurred in the manufacturing process. In this situation, they are completely exempt from import duties, if the right steps are followed.
Other instances of OPR are calculated based on the value added to the product when it was processed outside of the customs territory. That means partial relief is applied so that duty isn’t paid on the goods in their entirety, only the work carried out abroad.
Customs authorities grant permissions for firms to use the OPR procedure and specify the period within which it will be discharged. They can also allow a like-for-like exchange of non-agricultural processed products obtained in a third country to be imported if the equivalent quantity of raw materials from the union is exported in return.
The importance of outward processing relief
OPR is important to businesses for a number of reasons, but ostensibly to optimize supply chains without an unfair, additional cost. It allows firms to manage cash flow, while making use of lower labor costs and technical expertise that might not be available to them in the same country.
Modern manufacturing processes can be complicated, with components originating in multiple parts of the world. Offering relief on import duties so that goods can move freely between locations without incurring additional costs helps to keep the flow of products moving.
Being overseen by customs authorities is equally important, as it’s vital the system is not misused to cut import duties where they’re legitimately warranted. Firms must ensure they fully understand export and import processes so they’re not caught out by the rules in place.
Why the right software tools can help with OPR
Like all import and export processes, OPR requires lots of paperwork. The application process takes around 30 days, after which firms should reasonably expect to hear back from customs authorities if they have received permission for a full or partial exemption from duties.
Rules around OPR state that businesses must keep records for each claim for four years after the period of authorization expires. As it’s up to firms to work out the duty they can claim for themselves, it’s vital you are able to show how it was calculated.
It should be based on the rate of yield, which is the ratio of products that have resulted from outward processing. In cases where multiple different types of goods are being re-imported, a separate bill of materials is required for each one.
MIC’s software solution for OPR helps you to manage the whole process of applying for relief from its initial stages, right up until you’re archiving records in case they’re needed for the future. Having the right tools can make OPR run much more smoothly, increase your chances of being exempt and ensure all your paperwork is in order.

Get in touch
Have questions about our company or products? Reach out to us, and our sales team will be happy to assist you. Or take advantage of the opportunity to explore how MIC solutions can elevate your business, with expert guidance from one of our specialists.