GlossaryEN1 min readUpdated: Jun 18, 2026
Processing trade
Processing trade describes the temporary cross-border movement of goods for the purpose of manufacturing, finishing, or repair, where duties are suspended rather than collected outright.
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Source: https://ec.europa.eu/taxation_customs/business/customs-procedures-import-and-export/special-procedures/processing_en
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Definition & Explanation
Processing trade describes the temporary cross-border movement of goods for the purpose of manufacturing, finishing, or repair, where duties are suspended rather than collected outright. The term covers both inward processing – importing inputs duty-free for domestic processing and subsequent re-export – and outward processing – exporting domestic goods for processing abroad and reimporting them with duty relief on the value added. The concept is central to customs regimes that seek to support internationally fragmented production without imposing duplicate duty burdens. In EU customs law, both procedures fall under the category of special procedures defined in the Union Customs Code. The arrangement is particularly relevant for industries with cross-border supply chains such as textiles, mechanical engineering, and electronics assembly.
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