Outward Processing Relief (OPR)

Once authorization is granted, businesses can export their goods for processing and then re-import the processed goods back into the UK without paying duty or VAT, provided that they meet certain conditions. For example, the processed goods must be re-imported within a specified time period and in the same condition as when they were exported.

OPR can be particularly useful for businesses that need to carry out complex processing activities that cannot be done in the UK. For example, businesses that need to carry out specialist manufacturing processes, such as refining or chemical processing, may find that it is more cost-effective to outsource these activities to a specialist manufacturer outside of the EU.

There are also potential benefits to using OPR in terms of reducing costs and improving efficiency. By outsourcing some of their manufacturing processes, businesses may be able to reduce their overheads and increase their competitiveness. Additionally, by taking advantage of OPR, businesses may be able to access new markets and customers that they may not have been able to reach otherwise.

In conclusion, Outward Processing Relief is a customs procedure that allows UK businesses to export goods for processing outside of the EU, and then re-import the processed goods back into the UK without paying duty or VAT. OPR can be a useful tool for businesses that need to carry out processing activities that cannot be done in the UK, or for those looking to reduce costs by outsourcing some of their manufacturing processes. While there are certain conditions that must be met, OPR can provide significant benefits in terms of reducing costs, improving efficiency, and accessing new markets.