The outward processing procedure allows companies to temporarily export Union goods from the customs territory of the European Union (EU) in order to have them processed in third countries. Less or no import duties are then due for the re-import of the processed products into the EU customs territory. Customs duty is based on the cost of the processing operation, and Union goods are subject to less or no duty. Processing operations are understood to mean the repair (for example, repairs), processing (for example, dyeing of textiles), or the processing of goods (for example, the production of bakery products from cereals and other ingredients). In order to participate in the outward processing procedure, you must submit an application. There are 2 application procedures: For so-called "sensitive goods and products" according to the Union Customs Code, a detailed, formal application must be submitted. For other goods, the application can also be made in a simplified form. The main customs office in whose district your main accounts for customs purposes are kept or accessible is responsible for the formal application. The simplified application must be submitted to the customs office of export at your place of business or in whose district the goods are packed or loaded for temporary export. Goods whose export confers a financial benefit on the debtor are excluded from the outward processing procedure. These include goods the export of which gives rise to repayment or remission of import duties, which have previously been released for free circulation duty-free or at a reduced rate of duty by virtue of their end use the export of which gives rise to the granting of export refunds, or which, by reason of their exportation, receive a financial advantage other than the abovementioned refund under the common agricultural policy.