Inward Processing

What is inward processing, Customs meaning and other definitions?

Inward processing regime is a Customs and economic suspending regime that allows non-Albanian and Albanian goods to be used in the customs territory of the Republic of Albania in one or more processing operations in the form of compensating products, without such goods being subject to import duties or commercial policy measures.

Inward processing is an economic customs regime which essentially has the main purpose of work exporting, of technology and of other economic factors that directly make a simple or definitive transformation into ready-to-sell goods in order to be used as products in other processing operations, assembling or for consumption.

The use of this customs procedure shall be conditional upon the issuing of an authorization by the competent customs authorities.

The authorization shall be granted only:

• to persons who ensure to carry out the all the necessary operations;
• when customs authorities can supervise the regime;
• to persons established in the Republic of Albania. However, the authorization may be granted to persons established outside the country in respect of imports of a non-commercial nature;
• where, without prejudice to the use of goods, the import goods can be identified in the compensating products;
• where the inward processing procedure may help create the most favorable conditions for the export or re-export of compensating products, provided that the essential interests of Albanian producers are not adversely affected (economic conditions).

The application for granting an authorization shall be presented to the General Directorate of Customs Procedura including the following documentation:

1. Application according to Annex 27 of Implementing Provisions;
2. The legal documentation of the company;
3. The order contract with foreign companies for processing of goods;
4. Declaration by the company about the economic effects of the use of the authorization. In cases where goods are imported which, by their nature or technological process, are partially or wholy lost, it is presented the technological card and the methodology for determining the rate of yield;
5. In cases where it is foreseen to have one or more operators, it shall be presented an agreement or agreements concluded between the operators and the applicant for the authorization as well as the operator's fiscal identity, the operator's statement on the location where the processing is to be carried out and its availability for control at any time by the Customs authority.
6. The cases, where it is required that the customs offices of entry, supervision and discharge of the regime shall be different, a declaration by the company on the correct economic argumentation.
7. Documents (certificates) certifying that customs duties have been paid.