Customs operations listed in the Customs Law No. 4458 are under 8 different customs regimes. The “Inward Processing Regime” (/DIR) under the title of “Economically Effective Customs Regimes” stands out as one of the most frequently applied customs regimes both in Turkey and in other countries.
Turkey's total exports in 2022 amounted to 254.2 billion dollars. Among these exports, the input brought to the country within the scope of DIR reached the A ratio. In other words, 104.2 billion dollars of our exports consist of inputs brought from other countries and imported into production within the scope of DIR.
“Why do we not supply all the inputs of our export products domestically?” The question has a simple answer: economies of scale. If an input is obtained from thousands of kilometers away at much more affordable prices, brought to the country and put into production, it is because domestic inputs are sold at higher prices and there is no opportunity to obtain such input from the domestic market in volume.
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