Inward Processing

Inward Processing ? Reference Amounts

When goods are placed under the Inward Processing procedure, a comprehensive guarantee must be provided to cover the potential customs debt and other charges that may arise. To establish the level of coverage required, reference amounts must be calculated. These reference amounts represent the maximum potential customs debt that could become payable at any given time during the authorization.

For Inward Processing, the customs debt is calculated on the basis of:

• Import duties (customs duties based on the tariff classification and customs value of the goods),

• Excise duties, where excise goods are concerned,

• Import VAT, where applicable.

The calculation of reference amounts is therefore based on the customs value of the goods, the relevant duty rates, excise rates, and VAT liability. This ensures that the comprehensive guarantee adequately secures the financial interests of the customs authorities while reflecting the operator?s specific business activities under Inward Processing.

The following section sets out the reference amount calculations and accompanying explanatory notes. These form the basis for determining the guarantee required for the authorization.