Key Takeaways
- Outward Processing Relief (OPR) reduces Customs Duty and import VAT on goods exported from the UK for repair or processing, then re-imported.
- You must be established in the UK and hold authorisation before exporting — freight forwarders and customs agents cannot apply.
- Four authorisation routes exist: full, retrospective (max 12 months backdate), by declaration (repair only, max 10 times/year), and NI+EU multi-state.
- Duty on repairs is charged on repair costs plus shipping; free-of-charge repairs under guarantee may be duty-free if CPC codes and documentation are correct.
- For processing, duty is calculated using the rate of yield — the ratio of products produced to goods exported.
- Standard Exchange System allows replacement goods to be imported instead of repaired originals, subject to strict conditions.
What Is Outward Processing Relief?
Outward Processing Relief (OPR) is one of HMRC’s customs special procedures that allows UK businesses to export goods temporarily for repair or processing, then re-import them with reduced Customs Duty and import VAT. Instead of paying duty on the full value of the re-imported goods, you pay duty only on the value added abroad — typically the repair or processing costs, plus any materials used.
OPR sits alongside other special procedures including Inward Processing Relief, Customs Warehousing, Temporary Admission, Authorised Use, and Transit. It is designed for UK-established businesses that need to send goods outside the UK for work that cannot be done domestically, then bring them back for use or sale in the UK market.
The relief applies to both repair scenarios (fixing damaged or faulty goods) and processing scenarios (transforming UK goods into different products abroad). The key requirement is that the goods must be re-imported after the work is complete — OPR is not a route for permanent export.
According to HMRC guidance updated 8 May 2026, OPR is particularly valuable for businesses in sectors such as manufacturing, aerospace, automotive, and jewellery, where high-value goods may require specialist repair facilities or processing steps not available in the UK.
Who Can Use Outward Processing Relief?
To qualify for OPR, you must meet specific eligibility criteria set by HMRC. The rules are strict, and applications from ineligible parties are rejected.
Establishment requirement: You must be established in the UK. HMRC defines “established” as having a fixed establishment in the UK with the necessary resources to conduct business operations. This is linked to the broader HMRC guidance on checking if you’re established for customs purposes.
You do not need to own the goods you are exporting under OPR, and you do not need to be the person who re-imports them. Another person can re-import the goods with your permission, provided the OPR authorisation number is included on the import declaration.
Financial and compliance standards: You must demonstrate financial solvency, have a good compliance history with HMRC, and maintain appropriate commercial records. HMRC will review your EORI account history and may request financial statements for new businesses.
Excluded parties: Freight forwarders, express operators, and customs agents cannot hold OPR authorisation in their own right. These parties act on behalf of importers and exporters but are not the economic operators responsible for the goods. If you operate primarily as a logistics intermediary, you cannot apply for OPR — your clients must hold the authorisation.
Four Routes to Authorisation
HMRC offers four distinct authorisation types for OPR, each suited to different operational needs and circumstances.
Full Authorisation
This is the standard route for businesses planning regular OPR use. You must apply at least 30 days before your first intended export under the procedure. Full authorisation has no limit on the number of exports or their value, making it suitable for ongoing processing or repair relationships with overseas facilities.
The application requires detailed information about the goods, the processing or repair work, the expected rate of yield (for processing), and the countries involved. HMRC may request a guarantee under the Customs Comprehensive Guarantee (CCG) scheme to cover potential duty liabilities.
Retrospective Authorisation
Retrospective authorisation is granted in exceptional circumstances where you have already exported goods without prior authorisation. HMRC may backdate authorisation for up to 12 months, or up to 3 months for sensitive goods.
You cannot apply for retrospective authorisation if you have been granted retrospective authorisation in the previous 3 years. This route is intended for genuine mistakes or emergencies, not as a way to bypass the standard application timeline.
Authorisation by Declaration
This simplified route allows you to use OPR at the border without holding a full authorisation. It is available for repair work only — not processing — and is subject to strict limits:
- Maximum of 10 times per rolling year (increased from 3 times in July 2025)
- Goods value must not exceed £500,000 per declaration (rule introduced 3 February 2025)
- Cannot be used for goods subject to anti-dumping duties
- Cannot be used with simplified customs declarations
Authorisation by declaration is ideal for occasional repairs where setting up a full authorisation would be disproportionate. The customs declaration itself serves as the authorisation request, using Requested Procedure code 2100 (which replaced 2200 from 8 May 2026) with appropriate Additional Procedure Codes.
Northern Ireland and EU Multi-State Authorisation
If you need to move goods between Northern Ireland and EU member states for processing, you can apply for a multi-state authorisation. This requires an XI-prefix EORI number and is coordinated between HMRC and EU customs authorities.
Applications should be sent to admin.uum.cdms@hmrc.gov.uk with details of all processing sites involved. This route is relevant for businesses with operations spanning the UK and EU under the Northern Ireland Protocol arrangements.
How Duty Is Calculated
The method for calculating duty depends on whether you are exporting for repair or for processing.
Repair Scenarios
For goods exported for repair, Customs Duty is charged on:
- The cost of repair or replacement charges
- Inward shipping costs (transport from the repair facility back to the UK)
- Insurance costs related to the return shipment
Import VAT is charged on the repair costs, outward and inward freight, and the duty amount (excluding insurance).
Free-of-charge repairs under guarantee: If goods are repaired free of charge under a manufacturer’s guarantee, no Customs Duty is payable provided you meet specific conditions:
- The correct CPC code is used on the declaration
- Documentation proves the goods were originally exported under OPR
- The repair is genuinely free and guarantee terms are shown
- The guarantee cost was included in the original customs value of the goods when first imported
However, if warranty or service contracts were not included in the original import value, duty is payable on that portion. For replacement goods supplied under guarantee, VAT is charged on the full VAT replacement value even if no duty is due.
Processing Scenarios
When goods are exported for processing (transformation into different products), duty is calculated based on the rate of yield — the ratio of products produced to goods exported.
For example, if you export 1 roll of cloth and receive back 5 dresses, the rate of yield is 1:5. Duty is calculated on the processing costs and any additional materials used, not on the original UK goods (which were already in free circulation).
If multiple products are made from multiple materials, HMRC accepts a bill of materials to establish the yield relationship. You must maintain records demonstrating the input-output relationship for audit purposes.
The Export-to-Re-import Workflow
Using OPR correctly requires attention to declaration procedures at both export and re-import stages.
Export Procedure
When exporting goods under OPR, you must include your OPR authorisation number on the export declaration. From 8 May 2026, the correct Requested Procedure code for OPR exports is 2100 (replacing the previous 2200), with Additional Procedure Codes 000, 0GD, 1MP, or 46P as applicable.
If you plan to re-import the goods in separate consignments, you must complete an INF (information sheet) — one per commodity code. The INF must include:
- Goods description
- Quantity exported
- Identifying numbers or marks
- Expected rate of yield (for processing)
The INF serves as proof that the re-imported goods correspond to the original export, particularly when quantities or forms have changed.
Re-import Procedure
On re-import, you must include your OPR authorisation number on the import declaration. For full OPR authorisations, use Requested Procedure 6121 with Additional Procedure Codes 000, 1CD, 1CG, 1MO, 1XW, or 46P.
You must be able to prove that:
- The re-imported goods are the same as those exported under OPR (or the processed products thereof)
- The duty relief calculation is correct
For separate consignments, present a copy of the export declaration or the departure message alongside the INF.
Discharge
OPR is discharged when the goods are re-imported and all charges paid. Your records must demonstrate that the re-imported goods correspond to those exported. HMRC may audit these records for up to 3 years after discharge.
Equivalence and the Standard Exchange System
In some cases, you may not need to re-import the exact goods you exported. HMRC allows substitution under specific conditions.
Standard Exchange System
The Standard Exchange System allows you to import replacement goods instead of the repaired originals. This is useful when the original goods are consumed in the repair process or when importing replacements is more practical.
Conditions for use:
- Replacement goods must have the same 8-digit commodity code as the repaired goods would have
- Technical characteristics and commercial quality must match what the repaired goods would have had
- If the exported goods were used, replacements must be pre-used — new replacements are only allowed if supplied free under guarantee/warranty or due to manufacturing defect
- If the exact model is unavailable, the closest equivalent (even if upgraded) may be accepted
Restrictions: The Standard Exchange System cannot be used for goods subject to Common Agricultural Policy measures.
Equivalence for Outward Processing
Equivalence allows you to process non-UK goods instead of the UK goods you exported. This is useful when you have equivalent goods already abroad and want to avoid shipping the original UK goods back and forth.
Key rule: Equivalence goods for OPR must be non-UK goods. You cannot use UK-origin goods as equivalents for OPR purposes.
Sensitive goods restriction: Equivalence is not allowed for OPR on sensitive goods. Check the UK Trade Tariff for sensitive goods classifications before planning an equivalence arrangement.
FTA Repair Provisions
UK free circulation goods exported for repair or alteration to a Free Trade Agreement (FTA) partner territory may be re-imported without Customs Duty, subject to the conditions of the specific FTA.
Important: Normal import VAT rules still apply, and you must follow the OPR procedure even when claiming FTA relief. The FTA eliminates duty but not VAT.
You must check the conditions of the specific FTA to confirm eligibility. Not all FTAs include repair provisions, and those that do may have specific documentation requirements.
CPC codes for FTA repairs (updated 8 May 2026):
- Export under authorisation by declaration or full OPR: Requested Procedure 2100 with APCs 000, 0GD, 1MP, 46P
- Re-import under full OPR: Requested Procedure 6121 with APCs 000, 1CD, 1CG, 1MO, 1XW, 46P
Special Cases: Gold, Jewellery, and Sensitive Goods
Certain goods require additional steps under OPR.
Gold and Jewellery
Gold and jewellery exports under OPR must be sent to an Assay Office before export to identify carat and quantity. At re-import, you must provide manufacturer documentation proving the gold was used in the jewellery.
Duty is charged only on processing costs and added materials (such as stones or additional metal). Your description on the declaration must be sufficiently detailed to identify items at re-import — vague descriptions like “jewellery” will not suffice.
Sensitive Goods
Sensitive goods (as defined in the UK Trade Tariff) have additional restrictions:
- Retrospective authorisation is limited to 3 months maximum (vs 12 months for non-sensitive goods)
- Equivalence is not allowed for OPR on sensitive goods
- Authorisation by declaration cannot be used
Check the Trade Tariff for your commodity code to confirm if sensitive goods rules apply before exporting.
Pre-application Checklist
Before applying for OPR authorisation, gather the following information:
- Your EORI number (GB-prefix for UK, XI-prefix for NI+EU operations)
- Check if a Customs Comprehensive Guarantee is needed for your operation
- Check if an import licence is required for your goods
- Location where records will be kept
- Export method and location
- Whether you will use simplified declarations
- Guarantee details (if applicable)
- Expected time goods will spend abroad
- Goods details: commodity codes, description, value
- Quantity to be exported
- Description of the process or repair
- Rate of yield (for processing)
HMRC aims to process applications within 30 days, but complex cases may take longer. Apply well before your planned export date.
Frequently Asked Questions
Can I use OPR for goods I don’t own? Yes. You do not need to own the goods to apply for OPR, and you do not need to be the person who re-imports them. Another person can re-import with your permission, provided the OPR authorisation number is included on the declaration.
What happens if my goods are lost or destroyed abroad? If goods under OPR are lost or destroyed abroad, you may be liable for the full duty and VAT that would have been payable on import. Contact HMRC immediately to report the loss and discuss your options. Insurance is strongly recommended.
Can I use OPR for goods going to the EU? Yes. OPR applies to goods exported to any country outside the UK, including EU member states. Post-Brexit, the EU is treated as a third country for OPR purposes.
How long can goods stay abroad under OPR? HMRC does not specify a maximum time limit in the legislation, but your authorisation will specify an expected timeframe. If goods remain abroad longer than expected, contact HMRC to amend your authorisation. Excessive delays may raise questions about whether the goods are genuinely being processed or repaired.
Can I transfer my OPR authorisation to another business? No. OPR authorisation is granted to a specific economic operator (identified by EORI number) and cannot be transferred. If your business is sold or restructured, the new entity must apply for its own authorisation.