Inward Processing Authorization Certificate (IPAC)

Inward Processing Regime is one of the most effective foreign trade instruments used to procure raw materials at world market prices, boost exports, enhance the competitiveness of export products in international markets, expand export markets, and diversify exported products.

In general, the Inward Processing Regime is an economically efficient customs procedure that allows the temporary import of raw materials, auxiliary materials, finished and semi-finished products, and packaging materials for processing activities within the Turkish Customs Territory without applying foreign trade measures or imposing customs duties, additional customs duties, anti-dumping duties, VAT, and SCT (Special Consumption Tax), which are instead secured under a guarantee. Once the imported goods are processed and converted into final products, the guarantee is refunded upon their export.

What is the Inward Processing Authorization Certificate (IPAC) and Inward Processing Permit?

Under this regime, there are two types of authorizations: the Inward Processing Authorization Certificate (IPAC) and the Inward Processing Permit:

Inward Processing Authorization Certificate (IPAC): A certificate issued by the Ministry of Trade that allows duty-free imports and/or domestic procurement of goods intended for export.

Inward Processing Permit: A permit issued by the customs administration that allows the temporary import of goods for basic processing activities such as assembly, installation, repair, or painting, after which the processed goods are exported.

Validity Period: The duration of the inward processing authorization certificate or permit varies by sector but is generally a maximum of 12 months. After the expiration of this period, an extension can be requested from the Ministry of Trade for the certificate and from the customs administration for the permit.

What Are the Advantages of the Inward Processing Regime?

• Exemption from customs duties, additional customs duties, anti-dumping duties, VAT, SCT, and other import taxes for raw materials, intermediate goods, or auxiliary materials imported by domestic manufacturers for export.
• Reduces costs for exporters, allowing them to compete more effectively in international markets.

• Certificate/Permit holders can procure intermediate goods required for final product manufacturing from domestic producers without VAT under Article 17 of the Temporary VAT Law. This provides exporters with a financial advantage and prevents domestic producers from being negatively affected by incentives given to imported products.

• Certificate/Permit holders are exempt from trade policy measures while also gaining the ability to conduct their import transactions faster without needing additional compliance documents or permits within the scope of the regime.

Why Choose Inward Processing Regime Consultancy?

Ensuring that processes related to new certificate acquisition or ongoing certificate transactions are managed by expert individuals or institutions helps companies avoid time and financial losses. Additionally, it ensures the correct and complete application of Inward Processing Regime provisions, providing significant financial advantages.

At ConsultSight, we continue to support all our clients throughout the entire process, from acquiring the Inward Processing Authorization Certificate to its monitoring, revision, and closure.