Background

Inward Processing RegimeAdvisory

Manage the IPC application, maintenance, revision and closure processes in full compliance with the legislation; gain a cost advantage on the export side.

Explore the DetailsApply Now
IPC Process Management

Inward Processing
Regime

End-to-end advisory for exporting companies on tax exemptions, application steps, document management and closure processes under the IPR.

Application and follow-up via DYS
Correct use of tax advantages
Revision and closure process management
Technical support including the CPA report
Inward Processing Regime

What Is an Inward Processing Certificate?

The Inward Processing Regime (IPR) is a practice within Türkiye's foreign trade policy that allows exporters to process certain goods and services in Türkiye, making them more value-added, before shipping them abroad. This regime was developed particularly to support the export sector and to enable the Turkish economy to open up to international markets.

According to customs legislation, the IPR enables exporters to benefit from tax exemptions on the processing in Türkiye of raw materials or semi-finished goods sourced for export abroad, as well as on the labor and other services used in the processing. In this way, the cost advantages required for Turkish manufacturers to become more competitive abroad are provided.

What Is an Inward Processing Certificate?

How Does the Inward Processing Authorization Process Work?

The Inward Processing Authorization (IPA) process is a system that enables exporters to process raw materials sourced from abroad in Türkiye and export them as finished products. Exporters apply for this authorization, and their applications are reviewed and approved by the Ministry of Customs and Trade. Once authorization is granted, certain materials are exempt from customs duty, and the exporter can use the raw materials for processing in Türkiye.

When the processing is completed, the processed products are exported, the customs procedures are finalized and the finished product is shipped abroad. The customs administration conducts inspections to ensure that the operation is carried out within the legal framework. With the advantages provided by the authorization, exporters can manufacture at lower costs and achieve efficiency in their foreign trade processes.

What Is an Inward Processing Document?

The Inward Processing Certificate (IPC) is the official document obtained by exporting companies to process raw materials sourced from abroad in Türkiye and export the processed products. This document enables exporters to have certain goods exempted from customs duty. In other words, for the purpose of the final export of processed products, customs duty and certain other tax obligations are not applied during the import of the raw materials.

The Inward Processing Document includes details such as the type and quantity of the goods to be processed, the processing methods and the countries to which the finished products will be exported. This document enables the exporter to process raw materials sourced from abroad or domestically in a more economically efficient manner while manufacturing in Türkiye, thereby enhancing competitiveness. The Inward Processing Certificate is valid for a specific period and quantity, and once the processing is completed, the relevant products are exported through certain inspections and customs procedures.

What Exemptions Are Obtained with an Inward Processing Certificate?

Third-Country Import Exemptions

Exemption from customs duty, RUSF, VAT and other taxes on imports from third countries.

Tax / Duty / Fee Exemption

Exemptions from taxes, duties and fees on transactions within the scope of the IPR.

VAT Exemption on Domestic Purchases

The possibility of applying VAT exemption on domestic purchases within the scope of the certificate.

Advantage on Sales Deemed as Exports

The possibility of customs-duty-exempt imports for sales and deliveries deemed as exports.

Anti-Dumping Exemption

Anti-dumping duty exemption under certain conditions.

Liquidity Effect

A liquidity contribution to the business through the deferral/reduction of tax burdens.

IPC Management Processes

Who Can Obtain an Inward Processing Certificate?

Companies that are both manufacturers and exporters can hold the certificate. However, part of the manufacturing may be carried out through a subcontractor company, or if exports cannot be carried out directly by the certificate-holding company, they may be carried out through one or more intermediary exporter companies.

* May vary by sector.

Sistem Global Advisory IPC Services

A capacity report assessment is carried out to identify the products for which an application will be made within the scope of the inward processing certificate. A preliminary analysis of whether the company's requests align with the capacity report is conducted, and the details are communicated to the company.

APPLICATION SERVICE:

  • Preparation of the inward processing certificate authorization documents (Support Management System (DYS)) for the authority to be granted to the Sistem Global expert,
  • Ensuring that the authorization is opened via DYS,
  • Preparation of the certificate project according to the company's requests,
  • Submission of the prepared project for the company's approval/confirmation,
  • Entry of the project into DYS after the company approves it,
  • Sharing the approved certificate information with the company,
  • Preparation of a User Guide covering the special matters and points to be considered regarding the certificate after it is obtained, and its delivery to your company and accounting officers.

MAINTENANCE/MONITORING SERVICE:

  • After the inward processing certificate is issued, submitting revision applications when necessary in line with the company's requests, sharing the certificate status with the company at certain intervals through special calculations, and providing legislative updates,
  • Informing the company about situations that may arise depending on the status of the certificate,
  • If domestic purchases have been made under the certificate, ensuring the manual entry of their invoices into DYS.

INWARD PROCESSING CERTIFICATE CLOSURE SERVICE:

  • Determining whether the certificate is eligible for closure for certificates that have expired or for which a closure request has been received,
  • Informing the company about the preparation of an Expert or CPA Report and following up on it,
  • Preparing the closure file required under the legislation and submitting the closure request via DYS,
  • Delivering the closure letter to the company after the certificate is closed.

CPA REPORT SERVICE:

  • If domestic purchases have been made within the scope of the inward processing certificate, a CPA Report must be added to the closure file. We provide a service for the preparation of the CPA Report. You can call us for detailed information.
Sistem Global Advisory IPC Services

What Are the Legal Bases of the Inward Processing Certificate?

Frequently Asked Questions About the Inward Processing Regime

What is the purpose of the IPR?
The IPR (Inward Processing Regime) is a customs regime that enables companies resident in Türkiye, under certain conditions, to process materials imported from abroad and re-export them in processed form. The purpose of this regime is to increase Türkiye's exports, enhance the competitiveness of domestic production and produce value-added products.
What is the difference between an inward processing certificate and an authorization?
The inward processing certificate is the official document required for companies to benefit from the Inward Processing Regime. This document grants companies the right to import and to benefit from certain customs advantages. The IPR authorization, on the other hand, is the approval that enables companies holding this document to import. While the document grants general authority, the authorization grants specific transaction rights. For example, the authorization is used for operations such as assembly, packaging and repair.
How are imports made within the scope of the inward processing certificate?
To import within the scope of the IPR, companies must first apply to the Ministry of Customs and Trade to obtain an authorization or certificate. Subsequently, imports are made for a specific processing purpose. The imported materials must be processed and re-exported within the specified period.
How long is the inward processing certificate valid, and can it be extended?
The inward processing certificate is issued for between 6 and 24 months depending on the sector.
How is customs duty applied to goods imported within the scope of the IPR?
For imports made within the scope of the IPR, the payment of customs duty is generally deferred. However, if the processing operation is not completed or the specified commitments are not fulfilled, customs duty may be applied. This duty is not applied during import but may be payable upon export.
Can goods imported within the scope of the IPR be sold to third countries?
Goods imported within the scope of the IPR must be processed and re-exported. However, if the goods are properly processed and exported under the IPR conditions, they may be sold to third countries. The exported goods are intended to increase Türkiye's foreign trade.
What is the compensatory tax application in the IPR?
Compensatory tax is the tax that must be paid, on a declaration basis, during export when a good originating from a third country is imported within the scope of the Inward Processing Regime (IPR) and, at the end of the production process, is transformed into a processed product and exported, together with an A.TR Movement Certificate or proof-of-origin documents, to European Union (EU) countries, to countries with which we have signed a Free Trade Agreement (FTA), or to countries party to the Pan-European and Pan-Euro-Mediterranean Cumulation of Origin system.
How is the export commitment fulfilled?
The export commitment is fulfilled by exporting the goods imported within the scope of the IPR 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 within the scope of the IPR?
VAT exemption may be applied to goods imported within the scope of the IPR. However, this exemption is only valid if the import is carried out in accordance with the IPR conditions. The processing and re-export of the imported goods is a requirement for the VAT exemption.
What are the penal sanctions and liabilities in the IPR?
Penal sanctions within the scope of the IPR are applied when the regime conditions are not met. In addition, legal liabilities and monetary fines may also be involved.

See Also

Quick access to related resources

Analyze Your IPC Eligibility
Analysis
What Are a Quota Surveillance Certificate, a Tariff Quota and an Import License?
Publication
Detailed Overview

Legislation-Compliant and Measurable Management in IPR Processes

At every stage from the certificate application to closure, accurate documentation, regular follow-up and legislation-compliant execution directly affect the cost advantage.

Having the processes managed by an expert team reduces risks in the revision, reporting and closure steps and increases operational efficiency.

Legislation-Compliant and Measurable Management in IPR Processes
Legislation-Compliant and Measurable Management in IPR Processes

Let Us Manage Your Inward Processing Process Together
awaits you.

Contact us for end-to-end advisory on the IPC application, monitoring, revision, CPA report and closure processes.

Contact Us Now

How Can We
Help You?

With our expert team, we provide consultancy at global standards for your R&D and Design processes.

Call Now

+90 212 709 08 50
Loading...