What is Inward Processing Regime? Advantages for Exporters and Process Management
The Inward Processing Regime (IPR) is a crucial customs regulation that allows exporters to reduce costs associated with imports and increase their competitiveness. Many companies operating in Turkey actively use this regime to be more effective in global trade. As Boğaziçi Customs, we aim to help companies fully benefit from the advantages of IPR through our consulting services. In this article, we will cover what the Inward Processing Regime is, the advantages it offers to exporters, and how the process management is conducted.
What is the Inward Processing Regime?
The Inward Processing Regime allows a company to import raw materials or semi-finished products from abroad, process them, and re-export the value-added products. It postpones or fully exempts taxes payable at the time of import. This system reduces the costs of firms, especially those focused on exports, and increases their competitiveness in international markets. In Turkey, IPR is supervised by the Ministry of Trade and granted to companies under specific conditions.
Advantages of the Inward Processing Regime for Exporters
- Tax Exemption: IPR allows the exemption of customs duties, VAT, and other taxes on imported goods. As a result, companies can reduce production costs and export products at more competitive prices.
- Competitive Advantage: By sourcing raw materials at lower costs from abroad, companies can offer their export products at more affordable prices, providing a significant advantage in international competition.
- Improved Cash Flow: IPR allows deferral of tax payments during the import process, helping companies manage their cash flow more efficiently.
- Flexible Import Opportunities: IPR provides companies with a broader supply network. Needed raw materials can be imported from various countries around the world, and customs procedures can be managed more flexibly.
- Contribution to Domestic Production: IPR not only facilitates imports but also contributes to the development of domestic production. Companies create added value in Turkey by processing the imported raw materials, positively impacting the national economy.
IPR Process Management
Companies wishing to benefit from the Inward Processing Regime must carefully manage a specific process. As Boğaziçi Customs, we provide our clients with the most accurate and fast service in this process. The steps of the IPR process are as follows:
- Obtaining the Inward Processing Authorization Certificate (DIIB): Companies can import under the IPR by obtaining the certificate from the Ministry of Trade. This document specifies the type and quantity of imported goods and the export of the processed products.
- Import Process: After obtaining the authorization certificate, customs procedures for the goods to be imported begin. Boğaziçi Customs provides full support to companies during the import process, ensuring smooth completion of all customs procedures.
- Export Process: Once the imported products are processed, they are exported. At this stage, the export of processed goods must be completed within certain periods. Otherwise, the deferred taxes during importation may be reclaimed.
- Closure Process: After the export is completed, the Inward Processing Regime-related processes are closed. The closure process involves verifying the imports and exports under IPR with proper documentation and reporting to the Ministry of Trade.
At Boğaziçi Customs, we offer professional support to our clients at every stage of the IPR process. From obtaining the DIIB to completing the closure process, all steps are meticulously followed to minimize the risks faced by companies.
Stand Out in the IPR Process with Boğaziçi Customs Consulting
The Inward Processing Regime provides significant advantages for companies when properly managed. However, customs procedures and regulations can be quite complex during this process. As Boğaziçi Customs, we professionally manage IPR processes and reduce the workload of our clients. Our expert team provides the most suitable solutions according to your company’s needs, ensuring you maximize the benefits of the Inward Processing Regime.
With our IPR consulting service, we help your company accelerate customs processes, reduce costs, and improve export performance. We are always by your side in your import and export operations.
The Inward Processing Regime offers a great opportunity for exporting companies. Offering many advantages such as tax benefits, improving cash flow, and increasing competitiveness, this regime provides significant gains when professionally managed. At Boğaziçi Customs, we stand by your side in IPR processes. Contact us to simplify your business processes with our expert team and stand out in international trade.
