What is the Inward Processing Certificate (IPC)? What Are Its Benefits for Companies?
What is the Inward Processing Certificate (IPC)? What Are Its Benefits for Companies?
As Boğaziçi Customs, we provide comprehensive consultancy services regarding the Inward Processing Certificate (IPC), one of the most essential services for companies engaged in exports or production for export. For companies looking to accelerate their export processes, reduce costs, and increase their competitiveness, IPC offers significant advantages. So, what exactly is the Inward Processing Certificate, who can obtain it, and what benefits does it provide for companies?
What is the Inward Processing Certificate?
The Inward Processing Certificate (IPC) is a document that allows for exemption from customs duties and other financial obligations for raw materials, semi-finished products, or goods imported into Turkey for production purposes with the intent to export. With this certificate, companies can import inputs, produce goods using those inputs, and gain advantages by exporting the products without having to pay the taxes they were exempt from during the import process.
IPC is especially critical for exporters aiming to gain a cost advantage in foreign trade, as it helps increase the competitive edge of companies in international markets. Since all imported goods must be processed and exported, companies must carefully follow specific conditions and processes when using this certificate.
Who Can Obtain an IPC?
The Inward Processing Certificate is granted to companies planning to produce and export goods. These companies may include:
- Manufacturing companies engaged in exports or planning to export,
- Commercial companies importing goods for export purposes,
- Manufacturing companies importing semi-finished goods or raw materials and exporting them.
Companies wishing to apply for an IPC must document their import and export processes and fully comply with customs regulations. At Boğaziçi Customs, we assist companies in managing this process seamlessly and facilitate the application process with our consultancy services.
How to Obtain an IPC?
Companies that wish to obtain an IPC must follow a specific application process. This process includes the following steps:
- Preparation of the Application: In the initial stage, the products to be imported and the processing steps are planned in detail. At Boğaziçi Customs, we determine the most suitable strategy for companies and support them in preparing the necessary documents.
- Creating the Application File: All documents related to the import and export processes and planned operations are compiled into a file. This file specifies which products will be imported, the processing stages, and how the export will be carried out.
- Obtaining the Certificate: The application file is submitted to the Ministry of Trade, and after the necessary evaluations, the IPC is granted. At this point, companies can begin their import operations within the scope of the IPC.
Boğaziçi Customs supports companies throughout the entire process, from obtaining the certificate to monitoring subsequent procedures.
Benefits of the Inward Processing Certificate for Companies
The Inward Processing Certificate offers numerous benefits for companies, including:
- Tax Exemption: Companies importing within the scope of the IPC are exempt from customs duties, VAT, SCT, and other financial obligations. This significantly reduces import costs.
- Cost Advantage: Tax exemptions and other financial advantages lower production costs, allowing companies to produce goods at more affordable rates, which enhances competitiveness in international markets.
- Flexibility in Cash Flow: Since the IPC exempts companies from paying taxes during the import process, it positively impacts cash flow. Companies can use these resources for production and export instead of paying taxes.
- Increased Competitiveness: IPC helps companies become more competitive in international markets by providing a cost advantage. Lower production costs allow companies to reduce their prices and reach a broader customer base.
- Faster Import and Export Processes: With the IPC, import and export procedures are expedited, making international trade more efficient for companies. Moreover, the customs exemptions provided by the certificate accelerate logistics processes.
Boğaziçi Customs Consultancy Services
At Boğaziçi Customs, we provide professional consultancy services for companies in the application and management processes of the Inward Processing Certificate. We are with you at every stage, from preparing the necessary documents to tracking the application process and overseeing the import and export operations conducted under the IPC. Our expert team ensures that companies fully comply with customs regulations and take advantage of these benefits without any issues.
Companies that wish to obtain an Inward Processing Certificate or seek consultancy on managing this process can contact Boğaziçi Customs to secure their operations.
