Customs, tax & compliance DİR / IPR

Inward processing relief (IPR)

A customs regime that lets manufacturers import raw materials used to make export products without paying duty, anti-dumping duty or import VAT (or against a guarantee). It is granted through an inward processing authorisation – in Türkiye the DİİB certificate – and the export commitment must be discharged within a set period. It is a major cost advantage for exporters sourcing raw materials at world prices.

Related terms

Import duty (customs tariff)

A tax charged on imported goods on their customs value, according to the HS code and country of origin. It is usually a percentage of value (ad valorem), sometimes an amount per quantity (e.g. EUR per tonne). The rate can change with the general WTO rate (MFN), free trade agreements (zero or reduced rates), additional duties or anti-dumping measures. In landed-cost calculations it is computed on the CIF value including freight and insurance and is then added to the VAT base.

VAT (value added tax) on imports and exports

A tax on consumption. Exports are zero-rated in most countries, so the exporter can reclaim the input VAT it has paid. On imports, VAT is collected at customs on the customs value plus duty and other taxes, and a registered importer can usually deduct it, so the main impact is on cash flow. Between VAT-registered businesses in intra-EU trade the reverse-charge mechanism applies. Standard rates vary widely (e.g. 20 % in Türkiye, 19 % in Germany), and some raw materials enjoy reduced rates.

Bonded warehouse

A customs-controlled facility where imported goods can be stored for a long or unlimited time without paying duties. While in bond, goods can be resold to another country (transit trade), released into free circulation in instalments, or sampled; duties are paid only on the quantity withdrawn. Raw material distributors use bonded warehouses widely to hold stock while protecting cash flow and delivering quickly.

Explained in the trade handbook

Trade handbook