Active processing

Active processing is defined as the manufacture of goods for export, with exemption from customs and tax payments for raw materials, materials and components imported from third countries.

The production of the export goods takes place under the conditions set out in the permit. The Danish Customs Authority issues a permit for inward processing following a written application.

The permit is issued to the 'person' (licensee) who manufactures the export goods.

In Denmark, the Danish Customs Authority issues a permit for inward processing: the suspension scheme.

• Suspension, customs duties due on raw materials, materials and components are suspended at the time of import, against subsequent export of the processed goods. The part of the imported goods that can be attributed to the non-exported processed goods must subsequently be paid customs duties.

Typically, companies with a large export share use inward processing.

The grant can be applied for, among other things, as a unitary grant that applies throughout the EU, or as a grant for 3-sided inward processing, where the import of raw materials takes place in Denmark and the export of processed goods takes place from the Netherlands.

An inward processing authorisation can only be issued:

• For persons established in the EU
• When the imported raw materials, materials and components can be identified in the processed product
• When the inward processing procedure can contribute to creating the best conditions for the export of the processed goods, without affecting essential economic interests in the EU. See the section on economic prerequisites.