GlossaryEN1 min readUpdated: Jun 26, 2026
Outward processing
Outward processing allows a business established in the customs territory to export goods temporarily for processing, repair, or finishing abroad and reimport the compensating products with partial duty relief.
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Source: https://ec.europa.eu/taxation_customs/business/customs-procedures-import-and-export/customs-procedures/outward-processing_en
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Logistics concept
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Definition & Explanation
Outward processing allows a business established in the customs territory to export goods temporarily for processing, repair, or finishing abroad and reimport the compensating products with partial duty relief. Duties on reimportation apply only to the value added outside the customs territory, not to the full value of the returned goods. The procedure is governed by the Union Customs Code and requires prior authorisation from the customs authority. Common applications include the repair of capital equipment, toll finishing of textiles, and further processing of semi-finished goods in lower-cost countries. The key distinction from inward processing: under outward processing it is domestically sourced goods that leave the territory, whereas inward processing concerns imported inputs that are processed and then re-exported.
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