GlossaryEN1 min readUpdated: Jun 23, 2026
Active Processing
Unlike outright importation – where import duties fall due immediately – inward processing, also known as active processing, allows goods from third countries to enter a customs territory duty-free, undergo processing or transformation, and be re-exported as finished products, with import duties and VAT suspended throughout the procedure.
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Source: https://ec.europa.eu/taxation_customs/customs-4/customs-procedures-import_en
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Definition & Explanation
Unlike outright importation – where import duties fall due immediately – inward processing, also known as active processing, allows goods from third countries to enter a customs territory duty-free, undergo processing or transformation, and be re-exported as finished products, with import duties and VAT suspended throughout the procedure. Customs authorisation is mandatory, and imported inputs must be tracked continuously; any diversion to free circulation triggers the suspended charges. The procedure is widely used in textile, electronics, and machinery manufacturing, where raw materials or semi-finished goods are imported, refined, and re-exported. In EU customs law, the Union Customs Code (UCC) and its implementing provisions form the legal basis. It should not be confused with outward processing, where domestic goods are temporarily exported for treatment abroad.
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