Which Products Can Be Imported Under the Inward Processing Regime?
The Inward Processing Regime (IPR) is a significant incentive system for export-oriented companies operating in Turkey. It allows companies to import raw materials or semi-finished goods from abroad, process them in Turkey, and then export them as finished products. This system offers tax exemptions on imports, reducing costs for companies and enhancing their international competitiveness. However, the products that can be imported under the Inward Processing Regime are subject to specific rules and limitations. At Boğaziçi Customs, we provide consultancy services to ensure that companies can benefit from this advantageous regime in the best possible way.
Products That Can Be Imported Under the Inward Processing Regime
Products that can be imported under the Inward Processing Regime are limited to inputs such as raw materials, semi-finished goods, and operating supplies that will be used in the company’s production process. These products are imported to be transformed into a final product through a specific production process and then exported. Here are the main categories of products that can be imported under this regime:
- Raw Materials: Raw materials, which are fundamental in production processes, can be imported under the Inward Processing Regime. For example, cotton used in the textile industry, aluminum in the metal industry, or polymers in plastic production fall under this category.
- Semi-Finished Goods: Semi-finished goods that are used at specific stages of the production process and transformed into a final product can also be imported under this regime. Examples include engine parts in the automotive industry, circuit boards in the electronics industry, or partially processed chemicals in the chemical industry.
- Operating Supplies: Secondary products used in processing the imported raw materials and the operating supplies required during production can be imported under the Inward Processing Regime. These may include products that contribute directly to the production process but are not present in the final product. Examples include machine oils, industrial cleaning materials, or packaging supplies.
- Intermediate Goods: Intermediate goods that are used in earlier stages of production before becoming a final product can also be imported. Examples include certain intermediate chemicals in the chemical industry or processed food items in the food industry.
Products That Cannot Be Imported Under the Inward Processing Regime
The Inward Processing Regime restricts the importation of certain products. These limitations usually apply to products encouraged for domestic production or those considered strategically important to Turkey. Here are some of the main products restricted under the Inward Processing Regime:
- Agricultural Products: The importation of certain agricultural products is limited. Products that are supported for domestic production and hold significant value in the domestic market are not included under the Inward Processing Regime. For instance, cereals and some fruit and vegetable types are subject to import restrictions.
- Energy and Fuel Products: Energy resources such as petroleum, natural gas, and coal are not included in this regime. These products are subject to special regulations due to their strategic importance.
- Certain Technology Products: Some high-tech or strategically significant products may be excluded from the Inward Processing Regime. Products used in industries like defense and critical technologies, for example, may not be eligible under this regime.
Boğaziçi Customs Consultancy Services
At Boğaziçi Customs, we provide detailed information and consultancy services regarding the products that can be imported under the Inward Processing Regime. Ensuring the correct product selection and obtaining necessary permits allows companies to import with advantages and avoid potential penalties. Our services include:
- Product Analysis and Regime Compliance: We analyze whether the raw materials and semi-finished goods your company plans to use in production fall under the Inward Processing Regime.
- Managing Application Processes: We professionally handle the process of obtaining the required Inward Processing Authorization Certificate for the products to be imported.
- Managing Import and Export Processes: We ensure that companies carry out their import and export transactions accurately and efficiently.
- Risk Management: One of the most significant risks in imports under the Inward Processing Regime is the incorrect declaration of products or the import of unauthorized products. To prevent such issues, our expert team meticulously manages all processes.
The Inward Processing Regime provides significant cost advantages for export-oriented companies operating in Turkey. However, to fully benefit from this regime, it is essential to have accurate information about which products can be imported and which are restricted. At Boğaziçi Customs, we guide companies through this process, offering correct product selection and process management, helping them become more competitive in international markets.
If you want to make the most of the Inward Processing Regime, you can contact the experts at Boğaziçi Customs and benefit from tailored solutions to meet your company’s needs.
