What is inward processing in SAP SD - Sales and Distribution?

SAP Term: inward processing

• Component: SD

• Component Name: Sales and Distribution

• Description: The customs control of imported goods, primarily raw materials and semi-finished products, that are brought into the territory. Because these goods are intended for re-export, import duties can be waived temporarily. It is possible, however, to make such goods available for domestic consumption by paying the duties and then allow drawback at a later date, refunding part or all of the duties paid.

Smart SAP Assistant

• 
  Key Concepts: 
  Inward processing is a process in SAP Sales and Distribution (SD) that allows customers to import goods from outside the European Union (EU) for processing and then re-export them without paying customs duties. This process is used to reduce the cost of importing goods into the EU. 
  
  How to use it: 
  Inward processing is initiated by the customer, who must submit an application to the customs office in their country. Once approved, the customer can import the goods and begin processing them. The customer must then submit a request to the customs office for a refund of the duties paid on the imported goods. 
  
  Tips & Tricks: 
  When using inward processing, it is important to keep track of all documents related to the process, such as invoices, customs declarations, and proof of export. This will ensure that all necessary information is available when requesting a refund of duties paid. 
  
  Related Information: 
  Inward processing is similar to outward processing, which allows customers to export goods from the EU for processing and then re-import them without paying customs duties. Both processes are used to reduce costs associated with importing and exporting goods.