Inward Processing Relief (often referred to as IPR or IP) is a UK customs special procedure that allows businesses to import goods from outside the UK for manufacturing, processing, servicing, or repair, without paying import duties or VAT, provided the processed goods are subsequently exported or released to free circulation.
Free Inward Processing Consultation
BKR provides fully comprehensive support in preparing your business to apply for an Inward Processing authorisation before presenting your application to HMRC.
From initial solution design to representation at HMRC interviews, we guide you through every stage of the approval process with precision and expertise to ensure a successful return on investment.

Whether you need help applying for, or managing an existing Inward Processing authorisation, or are just exploring the concept of applying for Inward Processing, we have a solution for you.
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Feasibility & Eligibility Assessment
Aimed at businesses still exploring the concept of obtaining an Inward Processing authorisation, our Feasibility Assessment is a low-budget solution to ensure your business is eligible to apply, has considered any operational adjustments required, and has a full financial overview of both the savings and costs associated with operating Inward Processing Relief.
The service includes:
A full in-person review of security, health & safety, and operational procedures against the mandatory HMRC eligibility criteria
Production of a dynamic commercial model to analyse both the duty-savings and operational costs of operating Inward Processing Relief
A documented assessment report containing a list of recommendations and key observations that should be considered as part of the stakeholder decision
Application & Project Management
Full end-to-end project management to help prepare and support your business with Inward Processing. From the moment you decide to apply for an Inward Processing authorisation, to the date your authorisation is granted, BKR’s specialist trade advisors will guide you through each and every stage.
The service includes:
Advisory to set-up and design operational procedures required as part of the authorisation process
Co-creation of Inward Processing standard operating procedure documents and presentation of the application to HMRC officers
Full support communicating and addressing queries raised by HMRC evaluators
A successful return on investment guaranteed as a result of BKR’s 100% successful application rate
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Ongoing Operational Management
A tailored solution for clients seeking to obtain, or already approved for Inward Processing, who wish to explore options to outsource the daily operational management to experienced professionals, ensuring compliance, efficiency, and peace of mind.
The service includes:
Dedicated account managers that are specifically trained to oversee and manage complex Inward Processing procedures from remote positions and ensure full import duty savings are being realised.
Direct integration between preferred WMS / ERP platforms and BKR’s specialist duty management software, eliminating the need for additional data entry and license subscriptions
No requirements to recruit, upskill or procure costly software that risk eroding the true financial and operational benefits of operating a UK Inward Processing authorisation.
Speak With An Advisor
Let us know a little bit about how we can help and one of our customs experts will be in touch to arrange a consultation at the next mutually convenient date.
Schedule a free 30-minute consultation with one of our Advisors
Toby Spink
Director
Elizabeth Weldon
Head of Operations
Georgina Halls
Head of Advisory
Inward Processing Management, Made Easy
Our outsourced Inward Processing management service provides a fully integrated, low-risk solution that simplifies the administrative burden while maximising savings.
Interested parties gain immediate access to our specialist duty management software, which is supported by dedicated account managers trained specifically to manage your Inward Processing requirements, such as making declarations to HMRC and filing your quarterly Bill of Discharge (BOD).
With minimal administration and a significantly reduced risk of human error, the service removes the need to recruit, train or upskill internal staff, delivering a stable, year-round solution that is unaffected by staff turnover or absences.
Ultimately, this means lower costs, less operational hassle, and greater control over your customs warehouse operations.

Let us know a little bit about how we can help and one of our customs experts will be in touch to arrange a consultation at the next mutually convenient date.
Contact us using the details below, or simply fill out the contact form:
While the process may appear to begin with completing an online application for Inward Processing, in reality much of the work takes place well before the form is submitted. Many applicants encounter difficulties when they realise that HMRC expects robust systems and procedures to already be in place.
Key requirements include having suitable record-keeping processes to monitor and trace the customs status of goods within the facility, as well as clearly documented procedures that define responsibilities and day-to-day activities to ensure ongoing compliance with the conditions of Inward Processing authorisation.
To avoid wasted time and unnecessary cost, it is strongly recommended that you first assess your eligibility and work with a specialist. This ensures that any preparation or investment is targeted effectively and gives your application the highest possible chance of success.
Simplified Inward Processing (sometimes referred to as Simplified IPR), is available to all businesses up to 10 times in a rolling 12-month period without a full Inward Processing authorisation from HMRC.
In addition to the strict limit on usage, it also requires import duty and VAT to be paid as a financial security against each use. The financial security is only repaid once the goods have been re-exported and the importer presents proof of export to HMRC in the form of a simplified Bill of Discharge. There are numerous other restrictions on use, so it is important to check the full HMRC guidance.
Comparatively, a full Inward Processing authorisation requires businesses to apply to HMRC in advance. Once approved, the business can use Inward Processing without a cap on usage and without the need to provide a financial security against each occurrence.
Therefore, businesses who are importing goods that incur a particularly high figure amount in import duty and VAT, or who have the potential to use Inward Processing procedures more than 10-times per 12-month period, a full Inward Processing authorisation would be more appropriate.
HMRC provides a basic set of requirements to consider before applying for a Inward Processing authorisation. These include:
• Being established in the UK
• Holding a UK EORI number
• Being financially solvent
• Maintaining a good compliance record with HMRC
• Demonstrating an economic need for Inward Processing
• Having processes to declare goods to HMRC
• Managing accurate records and providing a schedule of activities
• Providing a customs guarantee if requested
While these points cover the minimum requirements, true eligibility is typically determined through a detailed review of operational procedures and record-keeping systems.
To help applicants assess readiness and reduce the risk of costly delays or failure, we offer a Feasibility and Eligibility Assessment. This allows businesses to verify their eligibility and financial model against a significantly lower-budget, before committing to the full Inward Processing application process.
A Bill of Discharge (BOD) is an official submission to HMRC confirming that import duties and VAT have been correctly accounted for and paid on goods imported into the UK under Inward Processing Relief. It effectively “discharges” the importer from further liability for the associated duties and VAT.
For both Simplified Inward Processing Relief and a full Inward Processing authorisation, Bills of Discharge must be submitted to HMRC as part of the conditions of use.
For Simplified Inward Processing, a Bill of Discharge is required against each individual use and must be submitted before the import duty and VAT previously paid as a financial security is returned. For full Inward Processing, a Bill of Discharge is usually submitted each quarter for an aggregated schedule of transactions.
Ensuring accurate record-keeping and timely presentation of Bills of Discharge to HMRC is essential for operating Inward Processing and is an area businesses often face difficulties. As such, It may be beneficial to consider outsourcing this activity to trained experts. See BKR’s Inward Processing management solution for more information.
Many businesses need a full Inward Processing authorisation when they import goods on behalf of overseas clients to carry out services, without taking ownership of the goods.
Under UK VAT law, the importer of record can only recover import VAT if they own the goods and have the right of disposal. This means that businesses processing goods for overseas clients are generally unable to reclaim VAT, which becomes a sunk cost.
Inward Processing Relief (IPR) allows you to suspend the VAT liability while the goods are being serviced, repaired, or processed. Provided the goods are subsequently re-exported and the proper proof-of-export procedures are followed, UK VAT does not become payable.
For businesses performing services such as repair, calibration, or maintenance on goods sold to overseas customers, applying for an Inward Processing authorisation is essential to avoid VAT risks and ensure compliance.