There have been a number of significant developments to Inward Processing Relief (IPR) recently that impacts businesses ability for claiming duty relief. 

How IPR works 

IPR relieves customs duty on materials or components imported in to the EU, processed and subsequently exported outside of the EU or put to another qualifying regime.

Processing in this context has a wide meaning from simplified processes such as repackaging to complex manufacturing operations.

Importers wishing to obtain the benefits of IPR agree to satisfy additional regulatory obligations and failures in meeting these responsibilities can result in loss of relief and penalties.

Importers must be authorised to use IPR. Authorisation can be applied for using the import declaration prepared by your agents (simplified authorisation) or by making a formal application using customs form C&E810.

There are currently two types of IPR:

• IPR Suspension whereby the import duty and import VAT are suspended and do not become payable provided the conditions of IPR are met.
• IPR Drawback whereby import duty and import VAT are paid at time of import but the duty is reclaimed if the conditions of IPR are met 

Importers must be able to prove the imported components or materials were exported within a specific time limit and make the necessary returns or reclaims to HMRC.

The Regulations include various provisions to simplify administration and extend the scope of duty relief. Time taken in setting up the most appropriate configuration should reduce the risks of non-compliance and improve any Return in Investment.