RPP - Outward Processing Regime allows the holder of the regime to send its raw material outside the EU to include it in a transformation process, and subsequently re-import the transformed product, benefiting from a reduction of the duties applicable to the import according to those that would have been applicable to those temporarily exported from the EU.
The advantages of this regime can be of two types:
- Fiscal. The benefit of this regime consists in the total or partial exemption of import duties on compensating or substitution products resulting from processing operations.
- Commercial. When Community acts provide for the application of commercial policy measures in relation to the release for free circulation, such measures shall not apply to compensating products released for free circulation resulting from outward processing operations in the cases established in art. 202 of the CAC; which have kept the EU origin, which have been subject to a repair and those complementary to successive processing operations.
This type of regime may be of interest to manufacturing companies.
Inward Processing Regime
RPA - Inward Processing Regime consists of the introduction of goods from outside the EU into the TAU, without payment of duties or subjection to commercial policy measures, in order to subject them to one or several transformations and, subsequently, proceed to grant them a new customs regime, which will generally be that of export of the resulting manufactured goods.
Some of the advantages of this regime are:
- To increase the competitiveness of Spanish companies in relation to products manufactured abroad.
- To reduce the manufacturing cost of the products since the goods introduced under the TAU will be re-exported at a later date, i.e., there is no reason to tax the import.
- Goods under this regime are not subject to import duties or commercial policy measures.
