Used Machinery Importation and Incentive Processes

In the manufacturing industry, an import permit must first be obtained for “old, used, or refurbished machinery and equipment” to be imported by companies for use in their production facilities based on their needs. The importation of certain machinery is unrestricted; however, following specific procedures is critical to benefit from incentive advantages.

Investment Incentive Certificate Advantage

If an investment incentive certificate is obtained or already held, used machinery can be added to the investment incentive certificate and imported without paying customs duty, VAT, and KKDF (Resource Utilization Support Fund). Obtaining an Investment Incentive Certificate is mandatory for Customs Duty reduction.

In an investment consisting of machinery and equipment purchases, as well as land-plot and building/construction expenditures, numerous opportunities are provided, such as Value Added Tax (VAT) exemption, Customs Duty exemption, Income/Corporate Tax reduction, and SGK (Social Security) premium support. The most frequently asked question is whether used machinery and equipment can be included within the scope of this certificate.

❌
Used Domestic Machinery

Cannot be included within the scope of the investment incentive certificate.

✅
Used Imported Machinery

Used machinery permitted for import can be included within the scope of the incentive certificate.

Restrictions on Used Machinery Importation

Sectoral restrictions may apply to the importation of used machinery and equipment. Procurement of used machinery under incentive certificates is not permitted for the following sectors:

  • Printing and Publishing
  • Press / Pressroom
  • Textiles
  • Ready-to-Wear and Apparel
  • Cement Manufacturing

Complete Machinery and Plant Importation

Complete plants permitted for import under the incentive certificate may consist of a full line capable of producing a good or service. However, imports under the incentive certificate cannot be made from companies engaged in the revision and trading of such plants.

Appraisal and Approval Process:
  • Evaluated on a project basis by the Ministry of Industry and Technology.
  • Proforma invoices showing the model and manufacturing years of the machinery and equipment are required.
  • Ministry personnel perform an on-site appraisal in the country where the plant is located.
  • If deemed appropriate, importation under the incentive certificate is permitted.

Note: Interest support is not applied to individual used machinery expenditures in investments aimed at the production of products classified as high-tech industries according to the OECD technology intensity definition; however, this support can be utilized for complete plant expenditures.