- Outward Processing Relief (OPR) lets you temporarily export goods to be processed, repaired or manufactured abroad, then re-import paying duty only on the value added overseas, not the full value.
- It is the mirror of inward processing relief (which covers import-process-re-export).
- Common uses: sending goods abroad for repair (duty only on the repair cost, or nil under warranty), or components abroad for manufacture/finishing.
- Needs HMRC authorisation and records linking exported goods to re-imported products.
- Import VAT on re-import follows normal rules, VAT-registered? Use PVA.
What is Outward Processing Relief?
Outward Processing (OP, often called Outward Processing Relief or OPR) is a customs special procedure that lets you temporarily export goods from the UK to be processed, repaired or manufactured abroad, then re-import the resulting products with relief from duty on the value of the goods you originally exported.
The effect: when the finished product comes back, duty is charged only on the value added abroad (the processing/repair cost plus any non-UK materials added), not on the full value of the returning product. Without OPR you would pay duty on the entire value, effectively paying duty twice on the portion that started as UK goods.
How OPR works
- Export under OP. You declare the goods to outward processing when they leave the UK, recording what is going out.
- Processing abroad. The goods are repaired, finished, or incorporated into a product overseas.
- Re-import the product. When it returns, you claim OPR so that customs duty is calculated on the value added abroad, not the full value.
- Account for it. You hold records linking the exported goods to the re-imported products so HMRC can verify the relief.
Import VAT on the re-import is handled under the normal rules; VAT-registered businesses use Postponed VAT Accounting.
OPR vs inward processing relief
They are mirror images, easy to confuse:
| Outward Processing (OPR) | Inward Processing (IPR) | |
|---|---|---|
| Direction | Export UK goods to be processed abroad, then re-import | Import goods to process in the UK, then re-export |
| Relief | Duty only on the value added abroad on re-import | Duty and import VAT suspended on the imported goods |
| Typical use | Repairs abroad, overseas manufacture/finishing | UK manufacture/repair for re-export |
See inward processing relief for the import-side equivalent. Both are customs special procedures needing HMRC authorisation.
Common uses for ecommerce and product businesses
- Repairs abroad. Send a faulty unit overseas for repair and re-import it paying duty only on the repair cost, or nil if the repair is free under warranty.
- Overseas manufacture or finishing. Send UK components or part-finished goods abroad to be assembled or finished, and pay duty on re-import only on the value added.
- Replacement under guarantee. In some cases faulty goods sent out and replacements received can be handled under OP, check the specific conditions.
Authorisation and records
OPR requires authorisation from HMRC (a full authorisation in advance for regular use, or authorisation by declaration for occasional use, subject to conditions). You must keep records that link the goods you exported to the products you re-import, so HMRC can confirm the relief was correctly claimed.
The admin is the main commitment, so OPR pays off where the duty saved on value-added is material and recurring. HMRC's detail is in its outward processing guidance. If you regularly process or repair abroad, an accountant or customs specialist can assess whether OPR is worth setting up, GoEcom can connect you.