Inward Processing Regime Consultancy

The Inward Processing Authorization (IPA) is a premier export incentive. By exempting your business from customs duties, it directly boosts net profit; by eliminating VAT on domestic purchases, it provides significant financial liquidity. Furthermore, by bypassing trade policy measures, it allows you to save both time and costs, significantly increasing your competitive advantage.

It is no exaggeration to say that IPA equals rigorous tracking. We often observe foreign trade firms making critical errors due to a lack of monitoring or inexperience.

At M’OCEAN, we provide expert guidance on obtaining the Inward Processing Authorization, utilizing it correctly to maximize all available benefits, and ensuring a seamless closure process.

Why Choose Us? Our strength lies in our extensive portfolio of industry leaders, our strict command over evolving legislation, and our deep-rooted knowledge of both inward processing and general customs regulations. We offer an elite team led by our Former Chief Customs Inspector and supported by seasoned customs consultants to ensure your operations are handled with the highest level of expertise.

M'OCEAN

WHAT IS THE INWARD PROCESSING REGIME (IPR)?

The Inward Processing Regime is a system that allows companies established within the Turkish Customs Territory (excluding free zones) to import non-free circulation raw materials, auxiliary materials (including catalysts), semi-finished goods, finished goods, unchanged goods, packaging, and operating materials without being subject to trade policy measures. Production can be carried out by the authorization holder and/or a sub-manufacturer. Importation is conducted on a paid and/or free-of-charge basis by securing the taxes via a guarantee. Upon fulfillment of the export commitment, the guarantee is refunded.

The system consists of two types:

  1. Suspension System

  2. Drawback System

WHAT IS AN INWARD PROCESSING AUTHORIZATION (IPA)?

An Inward Processing Authorization (IPA) is an export incentive certificate issued by the Ministry of Trade. Obtaining this certificate is mandatory to benefit from the Inward Processing Regime. The authorization is project-based; it requires the preparation of a project and an electronic application via the Ministry of Trade’s DYS (Support Management System). Once approved, the authorization can be utilized.

WHAT ARE THE ADVANTAGES OF OBTAINING AN IPA?

  • Tax Deferral: Customs duties, additional customs duties, anti-dumping duties, VAT, SCT, and other import taxes are secured by a guarantee instead of being paid during importation. After the processed products are exported and the IPA is closed, the guarantees are returned.

  • VAT-Free Domestic Purchases: Firms with an IPA can purchase goods without paying VAT for use in production and exports under Provisional Article 17 of the VAT Law (suspension-cancellation).

  • Use of Equivalent Goods: Companies are permitted to use equivalent goods (domestic or previously imported stock) in their operations.

  • Exemption from Trade Policies: Firms are exempt from various trade policy measures, allowing them to complete transactions faster without needing to obtain compliance or permission certificates at the time of import.

  • Discounted Guarantees: The right to use discounted guarantee rates is available within the IPR system.

CRITICAL CONSIDERATIONS

In addition to the significant advantages of the Inward Processing Regime, there are substantial penalties under Customs Legislation for regime violations. Furthermore, the Inward Processing Legislation contains specific sanctions, particularly encountered during the closure of the authorization. It is essential to be well-versed in and attentive to the relevant penal acts and sanctions.

WHY SHOULD YOU SEEK CONSULTANCY?

It is no exaggeration to say that an IPA equals rigorous tracking. We often observe foreign trade firms making critical errors due to a lack of monitoring or inexperience. Working with an expert will primarily save you time and provide strategic benefits. To maximize your advantages and minimize risks, experienced consultants who know the legislation and ensure compliance offer immense value.

  • Efficiency: Gain time by providing the correct documents and creating an accurate project during application.

  • Accuracy: Correct calculation of consumption rates, regular monitoring of legislation to act on rights and obligations, and precise calculation of Compensatory Duty (TEV) to avoid over or underpayment.

  • Closure: Ensuring the IPA is closed without penalties through proper management of the project-based process.

WHY SHOULD YOU CHOOSE US?

You should choose us because of our extensive portfolio across the industry, our strict tracking of legislation and documentation, and our deep-rooted expertise in both inward processing and general customs regulations. Our elite team is led by a Former Chief Customs Inspector and supported by seasoned customs consultants.

We are by your side for IPA acquisition, process management, revisions, and closure.

If you are obtaining an IPA for the first time:

  • Analysis of the advantages and disadvantages for your firm.

  • Correct acquisition of the Inward Processing Authorization.

  • Execution of authorization revisions.

  • Use of the authorization in compliance with legislation.

  • TEV calculations and seamless closure.

  • Legislative tracking and expert guidance.

If you already have an active IPA:

  • Analysis of whether you are utilizing it correctly.

  • Identifying more effective and advantageous features.

  • TEV calculations and seamless closure.

  • Legislative tracking and expert guidance.

For detailed information regarding our Inward Processing Authorization (IPA) services: CONTACT US

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