OUTWARD PROCESSING RELIEF (OPR)
Outward Processing Relief (OPR) provides duty relief on imports from third countries of goods which have been produced from previously exported Community goods. It enables businesses to take advantage of cheaper labour costs outside the EC, while encouraging the use of EC produced raw materials to manufacture the finished products. Goods may be also temporarily exported to undergo processes not available within the Community.
The procedure also enables faulty goods to be returned to a third country for repair, or for replacement with equivalent goods under the Standard Exchange System (SES).
When you import goods from outside the Community you normally have to pay duty on the full customs value of the goods. When Community goods are exported outside the customs territory of the EC they lose their Community status, and if they are later re-imported they are treated in the same way as non-Community goods, and are liable to duty on the full customs value.
When you use the OPR procedure it will enable you to claim relief from duty on the Community goods which have been exported for process, as long as you can show that the exported goods were used to produce, or are incorporated into, the products you are importing. Before you can claim duty relief under OPR, however, you must be authorised to use the arrangements.
If you have IPR goods in the Community which you need to export temporarily, for further process or for repair, you can obtain duty relief on the costs of the process when you re-import them, by exporting them under the OPR arrangements. However, to be eligible for OPR when you re-import the processed goods, you must put them back into IPR - you may not enter them to free circulation. To do this you will need to be authorised for both OPR and IPR, or hold an integrated authorisation.