Inward processing authorisation certificate and inward processing procedure are designed to give enterprises the chance to process goods imported outside Turkish customs area. By this way enterprises can make decisions on whether they are going to sell finished products in or out of Union. Inward processing procedure can be used for goods that will be processed with standard transactions to protect them, to improve their appearance or marketing quality and to prepare for distribution or resale.

After processing operations, products can be exported again or released for free movement. Besides importation tax, tax payment liabilities and trade politics precautions will be applied. But it is also possible to keep processed products at customs warehouses or free zones.

Inward Processing Regime in Turkey

According to Customs Union Agreement signed between Turkey and European Union on 1st January 1996 with 1/95th Resolution of Turkey-EU Partnership Council, various regulations in harmony with EU regulations were accepted. With one of the said regulations, Turkish exportation incentive system was cancelled and Inward Processing Regime (IPO) was enacted with a decree. This decree numbered 95/7615 came into force on 1st January 1996. Inward Processing Regime (IPO) numbered 2005/8391 came into force on 27th January 2005.

By this way Turkish producers can provide raw materials and intermediate products for exported products without paying customs tax and being subject to trade politics precautions. IPO authority owner is liable to import goods determined in the permission and export goods after processing imported goods. The main purpose of public offering is to keep material prices at the global level and increase rivalry power of Turkish exporters.

Inward Processing System

There are 2 inward processing systems.

Suspension System

Suspension system provides tax exemption to Turkish producers by allowing producer-exporter/importers import raw material and export final products without exportation taxes and VAT.

Disadvantage System

Paid exportation taxes of goods can be subject to tax refund after execution of importation guarantees.

You can contact us to take inward processing permission certificate.