Outward processing

Outward processing is a customs procedure where businesses can temporarily export Union goods from the customs territory of the Union e.g. for manufacture or repair.

Products manufactured through processing can be released for free circulation with total or partial relief from import duty.

The import duty on the products that will be manufactured of the products that are placed under the outward processing procedure (21XX) must be higher than zero when they are imported into the Union.

From 25 November 2020, an outward processing procedure that starts with export will require that an electronic INF number be provided in the export declaration.

If the import duty on these products is going to be zero due to their origin, tariff classification or other similar reason, temporary admission (22XX) has to be applied instead of outward processing. In such cases it is, therefore, not possible to use the outward processing procedure.

If there is a service interruption in the Customs Clearance Service and you are using the fallback procedure, enter the same details in the SAD form as you would in the Customs Clearance Service.

Points to consider

An authorisation for the outward processing procedure can be applied by a business that is established in the customs territory of the Union and that doesn’t have to carry out processing operations itself. The authorisation holder or, with the consent of the authorisation holder, another business established in the customs territory of the Union can release the goods for free circulation with total or partial relief from import duty.

In the standard authorisation procedure, an authorisation for the procedure has to be applied for in advance with customs form No. 1017e.

An authorisation for applying the procedure can be applied with a customs declaration. In that case, the required additional information is submitted with a message declaration or an online declaration. An authorisation for the procedure is granted, when the goods are released for the outward processing procedure. Agricultural products from customs tariff chapters 1–24 (goods according to annex 71–02 to the Delegated Regulation) cannot be placed under the procedure with a customs declaration.


Customs duties and taxes on goods placed under outward processing and re-imported into the Union are determined using the so-called value-added method, where the processing costs incurred outside the Union as well as certain other cost are included in the customs value of the goods and in the taxable amount for VAT. 

The basis for calculating the customs value has not changed since the introduction of the new customs declarations. Only the names of the fields and the codes in the declaration have changed. Please observe that the transaction price mentioned in the text means the total amount invoiced for processing or repairs. 

The instructions on this page also cover declarations for goods that are returned after being repaired.

Transaction price and other costs that affect the customs value 

In addition to the transaction price, the customs declaration for outward processing must contain the following details that affect the collection of taxes, unless they are already included in the transaction price. These details are entered as adjustments to the transaction price: 

  • costs that have incurred for outward processing and repairs outside the customs territory of the Union (labour costs and added materials)
  • costs of import and export freight outside the Union 
  • certain other costs, for example insurances

If the total amount of the processing invoice is entered as the transaction price and it does not include the costs of the processing, nor the value of added goods, enter them with separate codes: 

  • labour costs incurred outside the Union (code 1G) 
  • value of goods added outside the Union (code 1D).

Enter also with separate codes the following costs, if they are not included in the transaction price:

  • import-related transport and ancillary costs (code 1J) and insurance costs (code 1K) up to the place where the goods are brought into the Union 
  • export-related transport and ancillary costs (code 1H) and insurance costs (code 1I) incurred outside the Union 
  • royalties and licence costs, which are not entered if the repair is subject to a charge (code 1E)
  • costs incurred for engineering and development used in processing/repair (code 1F). 

Declarant not registered for VAT

If the declarant is an operator who is not registered for VAT, the following details must be entered with separate codes for calculation of the taxable amount for VAT. These details are entered as adjustments to the transaction price: 

  • the costs for transport, loading, unloading, insurance as well as other costs related to the import up to the first place of destination in Finland specified in the transport contract (code 3A)     
  • the abovementioned transport costs and other costs incurred up to another destination in the territory of the Union that are known at the time when the liability to pay VAT arises (code 3D) 
  • other taxes and charges with the exception of VAT, which are levied by the State or the Union due to the importation of goods in connection with customs clearance (code 3B) 
  • any taxes and other charges payable outside Finland (code 3C).

Statistical value

The statistical value of processed goods consists of the value of the exported goods, the costs for processing goods outside the Union, the value of goods added outside the Union, royalties and licence fees relating to the goods as well as freight and insurance costs from the place of processing to the Finnish border.

The statistical value of goods repaired for a charge, consists of the value of the exported goods, the cost of repairs outside the Union as well as of the freight and insurance costs from the place of processing to the Finnish border.

Enter in the customs declaration, the statistical value as the total amount of these costs.

Other things to note  

Enter the value of the exported goods at goods item level with the additional information code FIXXX.

Read detailed information on the taxable amount on VAT on import in the Tax Administration’s instruction (in Finnish). Furthermore, you can read the general information on the taxable amount of VAT on the Tax Administration’s website.


Outward processing is discharged when the processed goods are cleared for import.

The procedure must be discharged within the time limit given in the standard authorisation or in the export declaration for outward processing.


Prior import refers to the import of replacement products before the defective goods are exported. Prior import only concerns the standard exchange system (i.e. the use of replacement products).

Under the standard exchange system, a replacement product may replace a processed product. Replacement products shall have the same commodity code, the same commercial quality and the same technical characteristics as the temporarily exported goods after repair.

The procedure is subject to authorisation. In case of other than standard authorisation procedure, an accepted import declaration serves as the authorisation.


When the item is repaired free of charge under a warranty obligation, no customs duty has to be paid when the item is imported back to the Union. 

VAT must be paid for the transport costs, if the transport costs are collected from the declarant. 

If the declarant is not registered for VAT, the transport costs that affect the taxable amount for VAT must be entered with separate codes in the customs declaration: 

  • the costs for transport, loading, unloading, insurance as well as other costs related to the import up to the first place of destination in Finland specified in the transport contract (code 3A)     
  • the abovementioned transport costs and other costs incurred up to another destination in the territory of the Union that are known at the time when the liability to pay VAT arises (code 3D) 

In repairs free of charge, the statistical value consists of the value of the exported goods (intact) as well as of the freight and insurance costs from the place of processing to the Finnish border. 


UCC, Article 86(5), Articles 260 and 261 
Delegated Act (DA) Article 75 
Value Added Tax Act, Sections 88–93a 
Commission Regulation (EU) 113/2010 (Statistical value)


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