Inward Processing Regime (IPR) and Customs Exemptions

The Inward Processing Regime, which allows for the tax-free import of inputs to be used in production in exchange for an export commitment, offers cost advantages to companies while reducing their working capital needs.

📦 Tax-Free Supply

Exemption from taxes and funds is provided in the supply of the following items used in the production of goods to be exported:

  • Raw materials and auxiliary materials
  • Semi-finished and intermediate goods
  • Packaging and wrapping materials

🛡️ Exempted Taxes

Provided there is an export commitment, the following costs are eliminated in imports:

Customs Duty VAT SCT (Special Consumption Tax) Other Funds

Deferral-Cancellation Advantage in Domestic Purchases

The Inward Processing Regime provides a major advantage not only in imports but also in domestic raw material purchases. Thanks to the Deferral-Cancellation system applied within the framework of the VAT Law, exporters do not pay VAT for inputs they purchase domestically, which significantly eases cash flow.

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Application Requirement: To benefit from this incentive, it is mandatory to obtain an Inward Processing Authorization Certificate (DİİB) and realize the committed export within the certificate period.

* Inward Processing Regime operations require meticulous management in terms of customs legislation, time tracking, and closing transactions. You can apply to our consultancy unit to receive professional support regarding certificate acquisition and process management.