Glossary

Inward Processing Relief

Inward Processing Relief (IPR) is a customs procedure that enables companies to import goods from outside the European Union (EU) without paying taxes and duties. You can read the official UK guidance on IPR on GOV.UK. IPR is the counterpart to Outward Processing Relief, which applies when goods are sent abroad for processing.

Key benefits of inward processing relief:

  • Duty and tax deferral: Businesses can postpone paying import duties and taxes until the finished product is sold or released onto the EU market.
  • Flexibility: Depending on the market’s state, businesses can choose to sell the completed product inside or outside the EU.
  • Options for processing: Inward processing includes a broad range of tasks, such as simple packaging or preservation as well as manufacturing.