OPR allows EU goods, sent outside the EU for processing and subsequent
return, to be re-imported with total or partial relief from customs
duty. The goods which are returned after processing are referred
to as "compensating products". At re-importation you may
be required to prove that the compensating products have been manufactured
from the exported goods. OPR assists EU industries, such as textiles
and electronics, to take advantage of the cheaper labour rates available
outside the EU. Since, in effect, OPR allows an importer to pay
customs duty only on the value added (e.g., processing costs) to
the compensating products and the return freight. Please note, that
there is total relief from customs duty (and VAT) on goods that
have been repaired and returned free of charge.
Standard Exchange System (SES) is a variant
or OPR, which allows relief on goods imported as replacements for
EU goods exported from the EU for repair. Under "Prior Importation
SES", replacements may be imported before the goods for repair
are exported. Where Prior Importation SES is used, the faulty goods
must be exported within 2 months of the arrival of the imported
replacement. You should note that under SES, if the exported goods
were used, so must the replacements (i.e., you cannot replace old
with new). However, this rule does not apply if the goods are supplied
free of charge under a guarantee, or because of a manufacturing
defect.
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