From an economic point of view, outward processing aims to outsource machining and processing operations abroad in order to save costs. In contrast to inward processing, the goods are exported from the customs territory of the European Union and then re-imported in processed form.
When importing, it is a common practice to reduce customs duties on the processed products – customs duties are only levied on the value-added costs incurred abroad. It is important that the outward processing has been approved by the customs authorities beforehand.
