Inward Processing explained
Inward Processing, or IP, is a procedure used to suspend all import duties and VAT.
It is applicable if you wish to bring your foreign yacht or aircraft into the EU or UK for major works. For example:
- Significant repairs
Inward Processing is dependent upon the condition that your asset is to be re-exported on completion of works. This is unless there is an approved diversion to another customs procedure.
How Y & A Group, LP can help
Placing your asset under IP is subject to approval from the customs authorities.
This may be applied for and granted either in advance or in the procedure entering process.
Either way, Y & A Group, LP can help by placing your asset under the procedure through your chosen shipyard or aircraft facility.
In addition to this, following the works, we help you assess your asset’s tax situation.
For example, if it is to be re-exported from the EU or UK, no import tax will be due. However, if you wish to release the asset for free circulation in the EU or UK, it will be.
Our expertise means we’re also able to advise on other suitable customs procedures if necessary, including free circulation.
IP goes by different names or acronyms according to EU country. Some examples are as follows:
- TPA in Spain
- Aktive Veredelung in Germany
- Perfectionnement Actif in France.