GlossaryEN1 min readUpdated: Jun 26, 2026

Active processing

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Last updated: 26 June 2026Published: 27 January 2026

Source: https://ec.europa.eu/taxation_customs/business/customs-procedures-import-and-export/special-procedures/processing_en

Category

Logistics Concept

Reading time

1 min

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142

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Definition & Explanation

Inward processing is a customs procedure that allows businesses to import goods from third countries – raw materials, semi-finished products, or components – free of duty, process them domestically, and re-export the finished products. Import duties and import VAT are suspended for the duration of processing and become payable only if processed goods are released for free circulation within the customs territory rather than being re-exported. The procedure is governed by the Union Customs Code and requires prior authorisation from the competent customs authority. Common applications include garment manufacturing, food and feed processing, and the assembly of machinery from imported parts. Not to be confused with outward processing, where domestic goods are exported for processing abroad and subsequently reimported with duty relief – the key difference being that under inward processing, the goods remain in the customs territory until processing is complete.