What is an Inward Processing License?
The Inward Processing License is issued by the Ministry of Economy in order to boost export sales by providing raw materials to Turkey at World’s market prices, to increase competitiveness of Turkish export products across international markets, to flourish the export market and to diversify their export products.
This certificate allows importing any type of raw materials, auxiliary products, semi-products and products from foreign markets into Turkey required by export-oriented manufacturers, industrialists.
Let us explain it by a straightforward example.
You work in clothing industry. You manufacture. You also export your products. You could not find the fabric you need domestically or you have found it at an unreasonable price. Let’s assume that you have subsequently investigated and found the fabric at a reasonable price and quality in a foreign market. Just at this moment, you shall contact the Ministry of Economy and receive the necessary Inward Processing Authorization Certificate. Then you shall import that fabric into Turkey without paying any Customs Tax or Value Added Tax by submitting only a letter of credit or providing such guarantee. Finally, you shall export the clothing product made from that fabric. After shipping the products abroad, you shall be able to receive the guarantee that you have submitted to the relevant Customs Office back.