Guides / Outward processing · Updated 30 September 2026

Outward processing in the UK: repairs and processing in the EU

Sending a machine to Poland for repair, or components to an EU factory for processing, no longer comes back duty-free by default. Here is how HMRC's outward processing procedure works, which authorisation route fits, and how it differs from returned goods relief.

This guide is also available in Polish.

What outward processing is for

Since the UK left the EU customs union, a machine, tool or component sent from Britain to a workshop in Poland, Germany or anywhere else in the EU leaves the UK as an export and comes back as an import. Without a relief, the returning goods can attract import duty on their full value, even though they were British-owned stock all along. Outward processing is the HMRC procedure that deals with this. It lets a UK business export goods to be processed or repaired abroad and then pay less duty when they come back.

Typical cases include a production machine sent to its manufacturer in Poland for an overhaul, electronic equipment returned to an EU supplier for repair, or materials sent to a partner factory for a processing step that is then followed by re-import into the UK.

Who can use it

According to HMRC guidance, the authorisation holder must be established in the UK, be financially solvent, have a good customs compliance history and be able to keep appropriate records. You do not have to own the goods, and other people can handle the export or re-import with your permission.

HMRC states that freight forwarders, express operators and customs agents cannot hold the authorisation themselves. They can still prepare declarations for you, but the authorisation needs to be in the name of the business that actually uses the procedure. You will also need an EORI number, which is one of the items HMRC asks for in the application.

The authorisation routes

For a business that sends equipment to Poland for repair once or twice a year, authorisation by declaration is often the most practical route: the request is made on the export declaration itself. It covers repairs only, so any genuine processing (changing, assembling or manufacturing the goods) needs a full authorisation.

A full application asks for details such as commodity codes, where records are kept, the processing to be carried out and the rate of yield, meaning how much processed product results from a given quantity of exported goods. HMRC may ask for more information or visit your premises before it issues an approval letter setting out the conditions.

Declarations on the way out and back in

The authorisation number goes on the export declaration. Where goods are sent in separate consignments, HMRC asks for an information sheet for each commodity code, describing the goods, their identifying numbers and the expected rate of yield. On re-import, the same authorisation number goes on the import declaration, together with evidence that the goods left under outward processing and that the relief calculation is correct. The procedure codes used on both declarations are explained in our guide to customs procedure codes.

Identification matters. Your records must show that the re-imported goods are the same ones you exported, or that the exported goods are contained in, or form part of, what comes back. Serial numbers, photographs, workshop job cards and the supplier's repair report all help.

The procedure is normally discharged once the goods have been re-imported and all charges have been paid.

How the duty is worked out

HMRC's guidance says duty on re-import is based on the costs of processing or repairing the goods and bringing them back into the UK. For a repair, that means duty on the charges for the repair or replacement, plus inward shipping and insurance. The value of the original goods is not taxed again.

Repairs under warranty

If the manufacturer or seller repairs or replaces the goods free of charge under a guarantee, HMRC states that no duty is payable, provided the correct procedures are followed and the cost of the guarantee was included in the value declared when the goods were first imported. Keep the warranty terms and the original import documents on file, because they are what supports a nil-duty claim.

Import VAT

Import VAT is separate from duty. HMRC's guidance says VAT is charged on the repair costs, plus outward and inward freight and the duty, but not insurance.

Outward processing or returned goods relief?

The two reliefs are easy to confuse. Returned goods relief covers goods that come back to the UK in an unaltered state, apart from work needed to keep them in working order, normally within 3 years of export. HMRC's guidance says the goods must not have been upgraded to increase their value and should not have been exported to be repaired or processed. To claim relief from import VAT as well, the exporter and the importer must be the same person.

• Goods sent to Poland for a trade fair or a project and brought back unchanged: returned goods relief is the usual fit.
• Goods sent to an EU workshop specifically to be repaired: outward processing, with duty on the repair cost only, or nil duty for a qualifying warranty repair.
• Goods sent to be processed into something different or more valuable: outward processing under a full authorisation.
• Goods declared for outward processing but returned unprocessed: HMRC says returned goods relief may still be available.

A practical checklist

• Decide the route (by declaration, full or, only if unavoidable, retrospective) before booking transport.
• Record serial numbers and photographs so the same goods can be identified on return.
• Obtain the repairer's invoice showing repair charges separately, or a statement that the work was free under guarantee.
• Keep freight and insurance invoices for both legs, since they feed into the duty and VAT calculations.
• Make sure the EU side is covered too: the goods are imported into Poland for repair, which is a separate EU customs matter handled on that side of the border.

If you are unsure whether you need outside help with the declarations, see do you need a customs broker. For a wider walk-through with examples of repair and processing arrangements, read this overview of sending goods abroad for repair with relief.

Related guides

• Returned goods relief: re-importing goods without paying twice

• Inward processing in the UK: duty and VAT relief for processing and repair

• Buying clothing in the UK to resell in Poland: customs guide

Sources

• Apply to pay less duty on goods you export to process or repair (GOV.UK)
• Using outward processing to process or repair your goods (GOV.UK)
• Pay less import duty and VAT when re-importing goods to the UK and EU (GOV.UK)

General information, not legal, tax or customs advice. Rules change; confirm current requirements on gov.uk or with a registered agent before you ship.