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Inward Processing RegimeAdvisory

Manage Inward Processing Certificate applications, maintenance, revisions and closure in full regulatory compliance while securing cost advantages for export operations.

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Inward Processing Certificate Process Management

Inward Processing
Regime

End-to-end advisory for exporters on tax exemptions, application steps, certificate management and closure processes under the Inward Processing Regime.

Application and tracking through DYS
Correct use of tax advantages
Revision and closure process management
Technical support including certified public accountant reports
Inward Processing Regime

What Is an Inward Processing Authorization Certificate?

The Inward Processing Regime (IPR) is a foreign trade policy mechanism that allows exporters to process specific goods and services in Türkiye before exporting them with higher added value. It was developed to support the export sector and strengthen the international reach of the Turkish economy.

Under customs legislation, the regime allows exporters to benefit from tax exemptions for raw materials or semi-finished goods procured for export-oriented production, as well as certain labor and service inputs used during processing. This helps Turkish producers gain cost advantages and become more competitive in international markets.

What Is an Inward Processing Authorization Certificate?

How Does the Inward Processing Permit Process Work?

The Inward Processing Permit process enables exporters to procure raw materials from abroad, process them in Türkiye and export them as finished goods. Exporters apply for the permit, and the application is reviewed and approved by the customs and trade authorities. Once approved, specified materials may be exempt from customs duties and used in Türkiye for processing.

After processing is completed, the finished products are exported and customs procedures are finalized. Customs authorities may carry out inspections to confirm that the transaction complies with the legal framework. The permit enables exporters to produce at lower cost and improve efficiency in foreign trade operations.

What Is an Inward Processing Certificate?

An Inward Processing Authorization Certificate is the official document that allows exporting companies to process raw materials procured from abroad in Türkiye and export the processed products. It exempts certain goods from customs duties and related tax liabilities during import, provided that the processed products are ultimately exported.

The certificate includes details such as the type and quantity of goods to be processed, processing methods and target export countries. It enables exporters to process raw materials procured domestically or internationally more efficiently, improving competitiveness. The certificate is valid for a defined period and quantity; once processing is completed, the relevant products are exported through the required inspections and customs procedures.

Which Exemptions Can Be Obtained with an Inward Processing Authorization Certificate?

Third-Country Import Exemptions

Exemption from customs duties, Resource Utilization Support Fund (KKDF), VAT and other taxes on imports from third countries.

Tax, Duty and Fee Exemptions

Tax, duty and fee exemptions for transactions carried out within the scope of the Inward Processing Regime.

VAT Exemption on Domestic Purchases

Application of VAT exemption for domestic purchases covered by the certificate.

Advantages for Sales Deemed as Exports

The ability to import with customs duty exemption for sales and deliveries deemed as exports.

Anti-Dumping Exemption

Anti-dumping duty exemption under certain conditions.

Liquidity Impact

Liquidity contribution to the business through the deferral or reduction of tax burdens.

Inward Processing Certificate Management Processes

Who Can Obtain an Inward Processing Authorization Certificate?

Manufacturing and exporting companies may hold the certificate. Part of the manufacturing may be carried out through subcontractor manufacturers, and if exports cannot be performed directly by the certificate holder, intermediary exporter companies may be used.

* Conditions may vary by sector.

Sistem Global Inward Processing Certificate Services

We evaluate the capacity report to identify the products to be included in the certificate application. A preliminary analysis is performed to determine whether company requests align with the capacity report, and the details are shared with the company.

APPLICATION SERVICE:

  • Preparation of authorization documents required to authorize the Sistem Global expert through the Support Management System (DYS),
  • Opening the authorization process through DYS,
  • Preparing the certificate project based on company requests,
  • Submitting the prepared project for company approval and suitability review,
  • Entering the project into DYS after company approval,
  • Sharing approved certificate information with the company,
  • Preparing and delivering a user guide covering certificate-specific points and matters requiring attention after the certificate is obtained.

MAINTENANCE / MONITORING SERVICE:

  • Submitting revision applications when needed after the certificate is issued, periodically sharing certificate status with the company through tailored calculations, and providing regulatory updates,
  • Informing the company about situations that may arise depending on certificate status,
  • Manually entering invoices into DYS if domestic purchases were made under the certificate.

CERTIFICATE CLOSURE SERVICE:

  • Determining whether expired certificates or certificates requested for closure are suitable for closure,
  • Informing the company about preparation of the expert report or certified public accountant report and following up the process,
  • Preparing the closure file required under the legislation and submitting the closure request through DYS,
  • Delivering the closure letter to the company after the certificate is closed.

CERTIFIED PUBLIC ACCOUNTANT REPORT SERVICE:

  • If domestic purchases were made under the certificate, a certified public accountant report must be added to the closure file. We provide support for preparing this report. Contact us for detailed information.
Sistem Global Inward Processing Certificate Services

What Are the Legal Bases for the Inward Processing Authorization Certificate?

Frequently Asked Questions About the Inward Processing Regime

What is the purpose of the Inward Processing Regime?
The Inward Processing Regime enables companies resident in Türkiye to process imported materials under certain conditions and re-export them as processed products. Its purpose is to increase Türkiye's exports, strengthen the competitiveness of domestic production and support higher value-added manufacturing.
What is the difference between an inward processing authorization certificate and a permit?
The certificate is the official document required for companies to benefit from the Inward Processing Regime. It grants the right to import and benefit from certain customs advantages. The permit is the approval that allows specific import transactions under that certificate. The certificate provides general authorization, while the permit grants transaction-specific rights such as assembly, packaging or repair.
How are imports made under an inward processing authorization certificate?
To import under the regime, companies must first apply to the customs and trade authorities and obtain a permit or certificate. Imports are then made for a specified processing purpose. Imported materials must be processed and re-exported within the stated period.
How long is the certificate valid, and can it be extended?
Depending on the sector, an inward processing authorization certificate is generally issued for a period between 6 and 24 months. Extensions may be possible if the legislative conditions are met.
How are customs duties applied to goods imported under the regime?
For imports made under the regime, customs duty payment is generally deferred. If the processing process is not completed or the stated commitments are not fulfilled, customs duties may become payable. These duties are not collected at import but may arise at the export or closure stage.
Can goods imported under the regime be sold to third countries?
Goods imported under the regime must be processed and re-exported. If the goods are processed and exported in accordance with regime conditions, sales to third countries are possible. The exported goods support Türkiye's foreign trade objectives.
What is compensatory tax under the Inward Processing Regime?
Compensatory tax is a tax payable at export, based on declaration, when goods of third-country origin imported under the regime are transformed into processed products and exported with an ATR Movement Certificate or proof of origin to EU countries, countries with which Türkiye has a free trade agreement, or countries party to the Pan-European or Pan-Euro-Mediterranean cumulation systems.
How is the export commitment fulfilled?
The export commitment is fulfilled by exporting goods imported under the regime within the specified period. If the company fails to fulfill this commitment, it may face compensatory tax and other sanctions.
Is there a VAT exemption for goods imported under the regime?
A VAT exemption may apply to goods imported under the regime, provided that the import complies with regime conditions. Processing the imported goods and re-exporting them is a condition of the VAT exemption.
What are the penalties and responsibilities under the regime?
Penalties may apply if the conditions of the regime are not fulfilled. Legal responsibilities and monetary fines may also arise depending on the nature of the non-compliance.

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Regulation-Compliant and Measurable Management of IPR Processes

From certificate application to closure, accurate documentation, regular follow-up and regulation-compliant execution directly affect the cost advantage obtained.

Managing the process with an expert team reduces risks in revision, reporting and closure steps while increasing operational efficiency.

Regulation-Compliant and Measurable Management of IPR Processes
Regulation-Compliant and Measurable Management of IPR Processes

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