The Inward Processing Regime in Gold Imports and Its Penalties

Firms that will import unprocessed gold under the Inward Processing Regime (Dahilde İşleme Rejimi, DİR) must obtain authorisation from the customs administration or the Ministry of Trade in order to benefit from exemption from customs duties. You must export the product you manufacture from the imported raw material within the authorisation period and close the commitment. The sanction divides into two according to the type of breach: for breaches of the regime's rules, the customs administration imposes an administrative fine equal to twice the duty-paid value if the goods were irregularly removed from customs supervision or, if they were not removed, equal to the amount of interest calculated at the late payment surcharge rate; where the commitment is closed late, the irregularity penalty is applied in multiples.

This regime operates within the framework of Articles 108 to 122 of Law No. 4458, the Customs Law (4458 Sayılı Gümrük Kanunu), and Law No. 1567 on the Protection of the Value of Turkish Currency (1567 sayılı Türk Parasının Kıymetini Koruma Hakkında Kanun). The principles of the procedures are set by the Inward Processing Regime Decision and the Communiqué (tebliğ) on the Inward Processing Regime (Export: 2006/12). Article 7 of Decree No. 32 on the Protection of the Value of Turkish Currency (32 sayılı Karar) and the Communiqué on Precious Metal Standards and Refineries (Communiqué No. 2023/1), published in the Official Gazette of 23 February 2023, govern the import of precious metals.

Who Can Import Gold?

The distinction turns on whether the metal is standard or not. Under the DİR, as a rule, only the Central Bank of the Republic of Türkiye and precious metals intermediary institutions (kıymetli madenler aracı kuruluşu) may import standard unprocessed precious metals. The import of non-standard unprocessed precious metals, by contrast, is free.

This rule has a relaxation specific to the DİR. Persons resident in Türkiye (Türkiye'de yerleşik kişi) that do not have the status of a precious metals intermediary institution, that is, an institution that intermediates in exchange transactions, may import, in each import transaction, standard unprocessed gold not exceeding forty kilograms or standard unprocessed silver not exceeding two hundred kilograms. This option is available only for imports under the inward processing regime.

If intermediary institutions are to import unprocessed precious metals in their own name and for their own account, they may do so only as holders of an inward processing authorisation, and they notify the authorisation details to Borsa İstanbul A.Ş. in writing within three business days. In these imports there is no requirement to deliver the gold physically to the Exchange; providing written information within three business days is sufficient. The general rule, however, is physical delivery within three business days.

How Is Authorisation Obtained and How Does the Time Limit Run?

Exporters obtain an Inward Processing Certificate (Dahilde İşleme İzin Belgesi, DİİB) or an Inward Processing Authorisation (Dahilde İşleme İzni, Dİİ) to source raw materials. For comprehensive processing activities, you obtain a DİİB by applying electronically to the Directorate General of Exports of the Ministry of Trade; for simpler operations, you obtain a Dİİ by applying directly to the customs administration. The authorisation period is set at a maximum of twelve months depending on the sector (for the DİİB by the Ministry, for the Dİİ by the customs administration); however, for imports of unprocessed gold under an inward processing authorisation, the authorisation period is three months under Circular (genelge) 2023/16; for long-term manufacturing, additional time equal to the project duration may be obtained. The period starts on the date the document is issued and ends on the last day of the month in which it expires.

How Is the Commitment Closed?

Firms holding a DİİB must apply to the Ministry electronically within three months at the latest from the end of the certificate period. Firms holding a Dİİ must apply to the customs administration, together with the documents, within three months from the end of the authorisation period. Intermediary institutions notify the Exchange in writing of the closure dates of the authorisations they have closed within five business days following closure. Within the period, you may release goods that have not been exported for free circulation, destroy them under customs supervision or return them to their place of origin.

How Is the Movement of Payment Closed?

The distinguishing feature of the regime on the foreign exchange side is flexibility in offsetting. The general rule for offsetting is a maximum of one hundred and eighty days between the release of the import for free circulation and the actual export; where there is an inward processing authorisation, the period granted by the Ministry of Trade may be taken into account instead. Banks offset export proceeds (ihracat bedeli) and import payments (ithalat bedeli) without the proceeds being brought into Türkiye and without requiring the parties to be the same persons. For precious metals, imports are also possible under the without payment method.

This flexibility does not merge the two calendars: the commitment may be closed on the customs side while an account remains open on the foreign exchange side.

What Mistakes Are Made in Practice?

Firms most often make mistakes by missing deadlines, failing to make notifications and exceeding capacity limits. The total quantity of gold in the open inward processing authorisations of intermediary institutions may not exceed one third of the annual capacity in the capacity report. In addition, under a DİİB, the foreign currency utilisation ratio is set in the certificate by the Ministry at no more than 80%; this ratio must be complied with even if all the imported goods are used in the exported product. An inward processing authorisation (Dİİ) obtained from the customs administration, on the other hand, is not subject to the foreign currency utilisation ratio.

In the event of a breach, the customs administration collects the uncollected taxes with late payment interest under Law No. 6183 and imposes an administrative fine: twice the duty-paid value under Article 238(1)(a) of the Customs Law if the goods were irregularly removed from customs supervision or, if they were not removed, an amount equal to the interest calculated at the late payment surcharge rate under Article 238(1)(c). If a difference in quantity or value is found on examination, it imposes a half-fold penalty under Article 234(2). If you notify the irregularity yourself before the administration detects it, this penalty is applied at a rate of 10% (Article 234(3)).

Late export has a separate regime. If you export within one month after the end of the authorisation period, the administration closes the commitment by applying twice the irregularity penalty; if you export within two months, by applying four times the irregularity penalty.

What Should You Do to Avoid Sanctions?

• Obtain the required authorisation or certificate before the actual import: from the Ministry of Trade for comprehensive operations, from the customs administration for simple operations.
• Determine at the outset whether the metal you will import is standard or non-standard; for imports of standard metal, the intermediary institution requirement and the quantity limit come into play.
• If you are a firm that is not an intermediary institution, do not exceed the limit of forty kilograms of standard gold and two hundred kilograms of standard silver in each import.
• If you are an intermediary institution, notify the authorisation and the import to Borsa İstanbul A.Ş. in writing within three business days.
• Make sure that the total quantity of gold in your open authorisations does not exceed one third of the annual capacity in your capacity report.
• Under a DİİB, keep the foreign currency utilisation ratio between the CIF value of imports and the FOB value of exports below the ratio set in the certificate (at most 80%); the Dİİ is not subject to this ratio.
• File the closure application for a DİİB electronically within three months from the end of the certificate period, and for a Dİİ with the relevant customs administration within three months from the end of the authorisation period.
• Monitor the closure calendar on the customs side together with the payment calendar on the foreign exchange side; closing one does not close the other.

Warning. The information in this article is for general information purposes and does not constitute a legal opinion. Foreign exchange and precious metals legislation is a frequently changing area; the amounts, rates, thresholds, time limits and dates in this article may change in line with the legislation in force. Verify the latest version of the legislation before every application and transaction. Current texts are available at mevzuat.gov.tr.

Source: Customs Law (Law No. 4458), Articles 108–122, 234 and 238 · Law No. 1567, Article 3 · Decree No. 32, Article 7 · Inward Processing Regime Decision · Communiqué Export 2006/12 · Communiqué 2023/1 (Official Gazette of 23 February 2023, No. 32113)

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