Outward Processing (OP) Relief
Outward Processing (OP) is a customs procedure designed for UK businesses that export domestic goods to be processed, repaired, or incorporated into products abroad before being re-imported, eliminating double taxation on repairs and manufacturing
Without an OP authorisation, you would be charged full import duty and VAT on the entire value of the finished product. With it, you only pay duty on the costs incurred outside the UK (the "added value").
Duty & VAT Mitigation: Avoid paying import taxes on the value of goods you already own and have previously exported.
Enhanced Cash Flow: Significant reduction in duty outlay on high-value manufacturing and repair movements.
Standard Exchange System (SES): Access the ability to import a replacement product duty-free even before you have exported the defective one (Prior Importation).
Warranty Protection: Ensure that goods repaired under warranty return to the UK with 0% duty and VAT liability.
Competitive Edge: Lower your landed costs for products manufactured in your supply chain.
The Technical Requirements
Navigating an Outward Processing authorisation requires a deep understanding of HMRC’s "identifiability" criteria. You must be able to prove that the goods re-imported are the same ones—or contain the same components—that were originally exported.
Our technical oversight includes:
Calculation Method Selection: We determine the most beneficial calculation for your business—the "Added Value" method or the "Duty Differential" method—to ensure maximum tax relief.
Economic Condition Justification: We draft the necessary evidence to prove that your processing abroad does not negatively impact UK producers, a key requirement for HMRC approval.
Standard Exchange & Prior Importation: We architect the specific procedures required for "replacement" scenarios, allowing you to maintain operational uptime without triggering a tax event.
BoD (Bill of Discharge) Management: We implement the rigorous reporting frameworks required to close out your movements with HMRC, ensuring all re-imports are correctly matched to their original export declarations.
What are the benefits?
Why Readyset?
Outward Processing is one of the most underutilised reliefs in the UK because of its perceived complexity. Reayset removes that barrier. We move beyond theory to provide the "boots-on-the-ground" technical mastery required to manage these movements.
We help create your documented procedures, train your staff on new processes and customs entry requirements, and provide the independent support necessary to ensure your authorisation is not only granted, but will remain a key and compliant part of your supply chain.
Let's Secure Your Savings
Don’t let double taxation erode your margins. Contact us today to discuss how an Outward Processing authorisation can transform the financial efficiency of your global supply chain.