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Inward Processing Relief

FROM 1/5/2016
1. Introduction
Inward Processing Relief (IP)
, being a special customs procedure, it intends to foster and promote exports to third countries and to improve the competitiveness of the Union processing industry on an international trade level. Under IP, non-Union goods may be used in the customs territory of the Union in one or more processing operations* without such goods being subject to import duties, other charges (e.g. VAT, excise duties) and commercial policy measures (insofar as those measures do not prohibit the entry or exit of goods into or from the EU). Those products resulting from those operations are called ‘processed products’ may be:
a. re-exported from the customs territory of the Union or

b. placed to free circulation by paying the appropriate import duty on the basis of either:


    (i) the imported goods or

    (ii) the processed products


under the conditions laid down in articles 85-86 of Reg. (EU) no. 952/2013 and articles 166-168 of Reg. (EU) no. 2015/2446

*The processing operations, which can take place under the IP procedure are the following:
    • the working of goods, including erecting or assembling them or fitting them to other goods,
    • the processing of goods,
    • the destruction of goods,
    • the repair of goods, including restoring them and putting them in order,
    • the use of certain goods, which are not to be found in the processed products, but which allow or facilitate the production of those products, even if they are entirely or partially used up in the process (production accessories).
2. Legal provisions
    • Regulation (ΕU) no 952/2013 laying down the Union Customs Code (main common provisions: Articles: 22-32, 55, 79, 85-86, specific: Articles:210-225, 255-258)
    • Regulation (ΕU) no 2015/2446 Delegated Acts (main common provisions: Articles: 72-76, 98-99, 100-103, ειδικές: Articles: 161-183, 241, 248, 250, 254 and Annexes Α, Β: 33-06, 71-02 up to 71-06, 32-03)
    • Regulation (ΕU) no 2015/2447 Implementing Acts (main common provisions: Articles: 10-15, 147-158, specific: 259-269, 271, 324-325 and Annexes Α, Β)
    • Regulation (ΕU) no 2016/341 Delegated Acts for transitional rules (main common provisions: Articles:2-3, specific: 14-23, final provisions: 55 and Annexes Ι, D1, 12-application & authorisation forms, 13-INF)
    • The Customs Code Law of 2004, L. 94(I)/2004 (Articles: 54-57)·
    • The Excise Duties Law of 2004, L. 91(I)/2004·
    • The V.A.T. Law, L. 95(I)/2000, as it has been amended.
3. Application and authorisation

The entitlement to the use of the IP procedure is conditional upon the issue of an authorisation by the Customs & Excise Department, following the submission of:


    a. a relevant application or

    b. a customs declaration in any of the cases referred to in Article 163(1) - Reg. (ΕU) no 2015/2446 (DA), except those of paragraph 2 of the same article, such as:

      • goods listed in Annex 71-02 DA,
      • when more than one member state is involved,
      • where the use of equivalent goods is applied for
      • where an examination of economic conditions is required.
An application form can be obtained from district Custom Houses or by pressing here. Applicants are advised to study the relevant explanatory notes before filling in the application form.

The application for an authorisation shall be submitted to the customs authorities designated for the place where the processing operation is to be carried out (supervising office) and must include all the required information. Where the application concerns the import of agricultural goods, such as sugar, olive oil, milk or milk products mentioned in Annex 71-02DA [ex Annex 73-Reg. (EEC) No 2454/93], the submission of additional information is required in order to facilitate the examination of the economic conditions. The period of validity is extended up to 3 years for goods of Annex 71-02DA and up to 5 years for other goods.

The conditions under which the IP procedure is to be used shall be set out in the authorisation issued by customs and sent to the applicant together with a covering letter.

It is noted that as from 02/10/2017 the electronic Customs Decisions System-CDS has been put into operation, through which the economic operators are obliged to submit all their applications for customs decisions and for customs authorities of the member states to manage these applications and to take the relevant decisions. Therefore, the application for the use of an inward processing procedure must be submitted from that day through CDS. Information for the Customs Decisions System can be found by clicking here. Economic operators can be registered through https://customs.ec.europa.eu/tpui-cdms-web/

The authorisation shall be granted only:

    • to persons established in the Union and who offer every guarantee necessary for the proper conduct of the operations (persons established outside the Union can use the regime exceptionally under conditions of Article 161-DA)·
    • where the import goods can be identified in the processed products·
    • where the essential interests of Union producers are not adversely affected (economic conditions)·
    • where the customs authorities can supervise and monitor the procedure without having to introduce administrative arrangements disproportionate to the economic needs involved,
    • where a guarantee is provided in order to ensure that any customs debt or any other charges which is incurred in respect of goods placed under the IP procedure will be paid. The form to be used for this purpose is a General Bond, Form C.124.
It shall be noted that for the implementation of the Directive 2006/123/EC of the European Parliament and of the Council of 12 December 2006 on services in the internal market and the harmonised legislation (Law 76(I)/2010 concerning Freedom of Establishment of Service Providers and the Free Movement of Services- only in greek), the Department of Customs & Excise for the purpose of simplifying the procedures and administrative cooperation required for the evaluation of the above application, may, through the IMI system, request and obtain information concerning the applicant from the competent authority of another Member State, in which the applicant has declared that is a registered member.

For any further information concerning IMI system you may visit the website http://ec.europa.eu/imi-net or obtain access through the website of the Ministry of Commerce, Industry and Tourism.

4. Discharge of the procedure

The IP procedure is discharged when the imported goods or processed products have been:


    a) assigned a new customs procedure,

    b) re-exported,

    c) destructed or,

    d) abandoned to the state.


5. Information

For more information interested persons may write to the Department of Customs and Excise at the following address:


The Director,
Department of Customs and Excise
Corner M. Karaoli and Gr. Afxentiou,1096 Nicosia

The postal address is:
Director of Customs,
Customs Headquarters,
1440, Nicosia.
Fax no: 22302031
E-mail: headquarters@customs.mof.gov.cy

For oral inquiries you may call: 22601741.




Related Attachments:
Download file type AcrobatApplication for authorisation to use a special procedure other than transit (File Size: 471,42Kb)


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