Exporters Granted Additional Time for Duty and Fee Exemptions Under Inward Processing Regime

Forex - Export companies have been granted an extension for the implementation of tax, fee, and charge exemptions under the inward processing regime.

The changes to the communiqué on "Inward Processing Regime" and "Tax, Fee, and Charge Exemptions in Export, Transit Trade, Export-Like Sales and Deliveries, and Foreign Currency Generating Services and Activities" prepared by the Ministry of Trade have been published in the Official Gazette.

Accordingly, export companies are allowed to receive an extension for tax, fee, and charge exemptions under the inward processing regime. For inward processing licenses that have not been closed but were issued after January 1, 2021 (excluding inward processing licenses issued for goods under tariff headings 7108, 7112.91, and 7113.19), an application must be submitted to the Ministry within 6 months from the date this provision enters into force. If the application is deemed appropriate, an additional period equal to half of the original duration of the document/license will be granted, not exceeding 3 months from the date the application is approved.

For inward processing licenses/documents whose durations are extended until December 31, 2023, by benefiting from this extension possibility, the durations of those export commitment accounts that have not yet been closed will be automatically extended until March 31, 2025, provided that other rights for additional durations regulated by this communiqué are reserved.

Additionally, companies whose central or production facilities are located in the provinces of Adıyaman, Hatay, Kahramanmaraş, and Malatya, and that have tax, fee, and charge exemption documents or undocumented export credits issued/used before the effective date of this provision, as well as companies that do not have their central or production facilities in these provinces but can prove that they carried out exempt activities in these provinces, will have the durations of their documents/exemption entitlements not yet closed before the effective date of this provision extended until March 31, 2025, provided that applications are made to the Ministry for tax, fee, and charge exemption documents and to the relevant bank for undocumented export credits by this date (inclusive), reserving other rights for additional durations regulated by this communiqué.