It is a system that allows the importation of raw materials, auxiliary materials, semi-finished goods, finished goods, packaging, and operating materials used in products to be exported, without being subject to trade policy measures and by securing the taxes with a guarantee. Once the exports are completed, these guarantees are reclaimed.
In addition to importing your inputs without paying customs duties, it is also possible to purchase them domestically without paying VAT under the “export registration” (ihraç kayıtlı) scheme. You may perform your exports yourself, through an intermediary exporter, or transfer the obligation to another authorization-holding company.
Advantages of the Inward Processing Regime
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Exemption from Taxes and Funds: Customs duties, VAT, SCT, RUSF, and other taxes or funds are not paid during importation.
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Exemption from Trade Policy Measures: Imports are not subject to trade policy measures (such as quotas or surveillance).
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Domestic Purchasing Advantage: Domestic purchases can be made within the framework of the VAT “Postponement-Cancellation” (Tecil-Terkin) system.
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Domestic Sales Opportunities: Certain domestic sales and deliveries can be carried out in addition to exports.
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Guarantee Discounts: Significant reductions in the guarantees required for import taxes (utilizing 1%, 5%, or 10% guarantee instead of 100%).
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Use of Equivalent Goods: The system allows for the use of equivalent goods in the production process.
