KÜHEYLAN HUKUK
Legal basis: Customs Law No. 4458, Articles 108 to 127, 197, 238 and 241; Inward Processing Regime Decision No. 2005/8391, last amended by Decision No. 10211 (Official Gazette 16.08.2025); Inward Processing Regime Communiqué (Export: 2006/12), Articles 21, 37 and 38; Law No. 5607, Article 3/4. Prepared using legislation in force in 2026 and official sources dated November 2026.
Inward Processing regime ensures that imported inputs used in products to be exported are returned without payment of customs tax or paid back later. This advantage depends on the fulfillment of the export commitment within the document period and the closure of the pledge in its duration. Documents required for closure must be submitted within three months from the end of the document period; deficiencies are also given a one-month period. The request for additional time must be made within the same three-month period. In the event that the contract cannot be closed, taxes not received are collected, collateral is used in this collection and 238 of the Customs Code. Heavy fines are raised as part of the article. The Council, on the other hand, has developed significant assurances against sanctions based solely on lack of form.
How Does the Inward Processing Regime Work?
108 to 127 of the Customs Act. The processing regime, which is regulated in its articles, allows raw materials, auxiliary substances and packaging materials to be used for the production of export-related products to be exempted from import taxes. The regime is implemented by two systems. In the conditional exemption system, taxes are secured. In the repayment system, taxes are paid in imports and taken back after export.
The processing permit (DIIB) issued by the Ministry of Commerce determines the amount of inputs to be imported, the export commitment and the document duration. Significant changes have been made to the Resolution No. 10211 of 16.08.2025. Domestic purchases within the scope of the document have been made mandatory to be carried out during the document period, and additional periods have been left for notification. In addition, the determination that fewer imported inputs were used in the export product than was promised has been added to the cases requiring tax collection.
How to Get Additional Time?
The 21st Communiqué on the Processing Regime According to the article, the application must be made to the Ministry electronically within three months of the end of the document at the latest in order to receive additional time for the document. In the event that the export conditions stipulated in the Communiqué are met, the document may be granted an additional period of up to half the original document time. In special documents, such as complete facility and shipbuilding, it is sought to document the completion of a certain proportion of production.
The additional time is different from the extension of force majeure and special circumstances. In claims based on force majeure, the event must be proven by official documents that take place within the document period and effectively block exports. Failure to make a deadline request on time leads to finalization of the document period and incomplete closure of the commitment.
When and How to Close a Commitment Account?
37 of the Communiqué . According to the article, the company must submit the necessary information and documents to the regional directorate determined by the Ministry within three months at the latest from the end of the document. If the documents are not submitted or found incomplete in their duration, 38. In accordance with the article, notices are made to the firm for completion of deficiencies within a month.
The amount of use, capacity reports and consumption tables in imported inputs and exported products are compared in the closure review. Equivalent use of goods, domestic purchases and exports covered by documents are also checked. If the commitment is closed incompletely, it will be applied to the auction over the amount of input that does not occur. Once the commitment is closed, the repayment system must apply to the customs administration within three months for a refund of the taxes paid.
Application for additional time Within three months from the end of the document period (submission m.21)
Application for closure Within three months from the end of the document period (Communiqué m.37)
Regime violation penalty Double the customs value (m.238/1-a) or interest with taxes (m.238/1-c)
What are the Consequences of the Unclosed Document?
In the event that the commitment is not fulfilled, the Resolution 22. In accordance with the article and customs legislation, non-receivable taxes are collected on entries whose issuance does not occur. The guarantees provided in the conditional exemption system are used in this collection. In addition to this collection, 238 of the Customs Act. Its substance comes into play. In the event of a violation of regime provisions, an administrative fine is imposed twice the customsed value of the item (m.238/1-a). However, if the item has not been removed from customs custody in violation of legislation, the penalty is as much as the sum of interest (m.238/1-c) at the rate of tariff and delay increase.
If the procedures required by the regime are completed within one month after the end of the term, a penalty of four times irregularity shall be imposed if they are completed within two months (m.241/3-h, m.241/4-h). For 2026, these amounts are TL 2,988 and TL 5,976. The display of items as if they had been smuggled abroad by trickery is the 3rd Amendment to Law No. 5607. In accordance with the fourth paragraph of the article, it is a trafficking offence that requires imprisonment from one year to three years.
What limits did the Council bring to the delegates?
In its judgment of 18.03.2022, case E.2019/773, decision K.2022/1085, the Seventh Chamber of the Council of State held that customs liability under inward processing arises when the regime's conditions are breached. If the breach is discovered after the undertaking account has been closed and guarantees returned, the tax assessment must be notified within three years from that date. The judgment also emphasised that a penalty more severe than the one in force when the act occurred cannot apply, and annulled a penalty of twice the customs-inclusive value on that ground.
In its judgment of 21.12.2022, case E.2020/951, decision K.2022/5258, the same Chamber considered a refusal to count exports towards the undertaking because of a formal omission, such as failure to state the permit number on special invoices. It held sanctions unlawful in the absence of a concrete finding that the goods had not actually been exported. These judgments provide a defence against sanctions based solely on formal omissions at the discharge stage.
Event Summary Form: Fictional example: A textile exporter company imported yarn under 12 months of IBIB, but was able to fulfill 80% of the commitment due to the cancellation of an export order. The company filed for closure four months after the document expired. Process: The regional directorate decided to collect taxes on the missing part and use the collateral in this collection, stating that the closing application was not made on time and the commitment was incomplete. The customs administration has also imposed a fine twice the value of customs. Conclusion: If the inputs to the missing export are not yet in the company warehouse and removed from customs custody, the penalty is 238. According to subparagraph (c) of the first paragraph of the article, taxes must be limited by the sum of interest. Failure to make a request for additional time on time is the most critical mistake.
When should an additional period of time be required for IBIB?
The application for additional time must be made electronically within three months of the end of the document at the latest. Applications made after this period has passed will not be accepted.
How much time is there to close the commitment?
Documents required for closure must be submitted within three months from the end of the document. If a deficiency is reported, it will be given one month to complete.
What happens if the commitment is lacking?
Taxes on inputs that are not exported are collected, collateral is used in this collection and 238. An administrative fine may be imposed under the article.
If the imported inputs are still in storage, will the penalty be mild?
Yeah. If the item has not been removed from customs custody in violation of legislation, the penalty shall be applied as much as the sum of taxes and interest instead of twice the value that is customsed.
Can it be applied to the auction years after closing?
According to the Council of State, if the breach is detected after closing, taxes must be notified within three years from the date of identification. The account of the time must also be examined according to the concrete event.
What can be done if the form does not count as an export commitment due to lack of shape?
If the item can be documented as being de facto exported, there may be an appeal and a way of litigation against the sanction based on a lack of pure form. The Council has made protective decisions in this direction.
Failure to apply for additional time within three months of the end of the document. Failure to submit closure documents on time and incompleteness within a month. Failure to keep configuration tables and capacity report in line with actual production. Failure to show document number in export declarations and private invoices. 238. The penalty difference between (a) and (c) clauses of the article is not to be asserted in defense.
The processing regime provides exporters with a significant financing advantage, while having severe financial consequences if time and document discipline are not followed. Each of the phases of additional time, closure and fulfillment are subject to its own rules of duration and proof. Küheylan Law Office, DIİB in additional time and closure processes, to the approval decisions and 238. It provides legal support to exporter companies in the appeal against fines under the article and during the tax court stage.
Important Legal Notice: The legal statements contained in this guide are prepared by the Küheylan Law Office for general informational purposes and do not qualify as legal counsel. The unique conditions of each file can change the result. Legal support from a lawyer is recommended before the process begins so that application, appeal and trial deadlines are not missed. © 2026 Küheylan Law Office. All Rights Reserved.
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