GlossaryEN1 min readUpdated: Jun 25, 2026
Inward Processing Authorization (IPA) Systems
A company that wants to import materials duty-free, process them, and re-export the finished products applies through an Inward Processing Authorization (IPA) system.
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Source: https://ec.europa.eu/taxation_customs/business/calculation-customs-duties/customs-procedures/inward-processing_en
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Logistics Concept
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Definition & Explanation
A company that wants to import materials duty-free, process them, and re-export the finished products applies through an Inward Processing Authorization (IPA) system. The competent customs authority reviews the application, the processing plan, and the economic conditions before granting approval. Once authorised, the company may import raw materials or semi-finished goods under duty suspension and re-export the processed output without incurring permanent import duty liability. The authorisation comes with binding conditions: defined processing deadlines, quantity reconciliation obligations, and full documentation of all goods movements. Typical users include garment manufacturers working with imported cut fabric and electronics assemblers using imported sub-assemblies. The IPA system is distinct from the Inward Processing Control (IPC) system: the IPA grants the right to import under duty suspension, while the IPC monitors compliance with that right.
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