Inward Processing Relief (IPR) is a method of obtaining relief from Customs duties and VAT charges. The relief applies to goods imported from outside the EU, processed and exported to countries outside the EU. IPR provides relief to promote exports from the EU and assist EU companies to compete on an equal footing in the world market.
The processing allowed under IPR can be anything from repacking or sorting goods to the most complicated manufacturing. If a company therefore manufacture, process or repair goods obtained outside the EU and export the finished product they can save the Customs duty and VAT normally payable at import.
Being able to get relief from paying import duty and VAT can be very beneficial to companies, especially for cashflow reasons. Complying with the obligations to use the IPR procedure can, though, be off-putting. Langdon Systems provide an IPR module that has been designed to simplify the procedures of managing goods under IPR, whilst taking advantage of the maximum benefits available.