The aim of IPR is to encourage trade by granting duty and VAT relief (suspension) on imported goods, which are to be exported after processing. The ‘process’ for which the goods are imported can be simply labelling or packaging, or it can be more complex, such as a repair. The goods should be exported either in the same condition as they were imported or repaired.
If the goods are entered for free circulation, import VAT (and duty) become due at that point.
IPR is only available to authorised users, so applications must be made and approved before the goods are imported.