How outward processing works
Outward processing is designed to help EU businesses take advantage of lower labour costs or specialized technical expertise available in non-EU countries while maintaining the benefits of EU customs regulations. This regime is essentially the opposite of inward processing, where non-EU goods are imported for processing before re-export.
Key requirements and characteristics
To qualify for outward processing authorization, companies must meet two essential criteria. First, the exported goods must be identifiable in the composition of the re-imported product, ensuring traceability throughout the process. Second, granting the authorization must not harm the essential interests of EU-based processors, protecting domestic manufacturing capabilities.
Companies seeking to use this regime must apply for authorization through their national customs service. In France, for example, applications are submitted online via the SOPRANO platform managed by French customs authorities.
Practical application
The outward processing procedure begins with a temporary export declaration when goods leave the EU. For triangular traffic situations—where the placement office differs from the clearance office—an information bulletin must be created through the European INF STP portal. This ensures all relevant customs offices are properly informed of the goods’ movement and status.
Clearance and timeframes
Customs authorities establish a clearance period based on the time reasonably required for processing the goods and their transportation. This period accounts for the specific operations being performed and logistical considerations. If circumstances require additional time, the authorization holder can request an extension with proper justification.
It’s critical to complete the re-importation within the authorized clearance period. If this deadline expires without the goods being cleared, the operator loses eligibility for duty exemptions and becomes subject to standard import fees with no possibility of relief. This makes careful planning and timeline management essential for companies utilizing the outward processing regime.
The regime provides significant cost savings opportunities for EU businesses while maintaining customs control and ensuring fair competition within the European market.
