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İsmail ÇELİK
Incentive and Guarantee Department Coordinator
Inward Processing Permit (DİİB)
Country economies face recessions or crises from time to time. During such periods, production and consumption in the country decrease, employment and investments decrease, and investments in R&D and innovation decrease. Governments try to reduce the impact of recession or crisis on the market by intervening in these situations in the economy with various methods. State support and grants are one of them. State support or grants are not only applied in times of crisis or crisis. Countries also provide support to strengthen and grow their economies. Support is also provided to increase existing production, consumption, investment, and employment.
State Support is a system in which companies are helped to get rid of bottlenecks or to strengthen the economy during times of recession or crisis in the country's economy. State Support can be provided directly to companies or indirectly by regulating market conditions. Examples of Direct State Support; employment support to increase employment, marketing support to increase sales, support for export activities to boost exports, and entrepreneurial support to encourage entrepreneurs can be provided. Examples of Indirect State Support can be evaluated as; the establishment of organized industrial zones, tax exemptions, construction of transportation roads, postponement of receivables from companies by the state, etc.
Export-based economic growth policy is one of the most important growth strategies in Turkey as in all countries of the world. For the implementation of export-based economic growth policy to be successful, incentives supporting exports are at the core of the strategy. The Inward Processing Regime comes first among these incentives. The Inward Processing Regime is an export incentive system that provides customs exemption for raw materials or inputs that are required by exporting companies to produce export products and are imported and therefore subject to import customs duty.
Within the framework of Turkey's export-based economic growth policy, the Inward Processing Regime is an economically effective customs regime that provides support to domestic producers in terms of competitive advantage, sales increase, and product diversification by purchasing cheap raw materials and intermediate goods in world markets within the scope of the application of exemption from import taxes and funds, and thus, difficult market conditions, rapidly changing exchange rate fluctuations, increases in customs duty rates, trade policy measures, etc., allow manufacturing companies that import raw materials to procure raw materials at world market prices without being forced to do so. Within the scope of the Inward Processing Regime No. 2006/12, the Inward Processing Permit Certificate (DIIB) is granted.
Investment Incentive Certificate: It is a document issued to support investments by the state to eliminate regional imbalances by using high value-added, advanced, and appropriate technologies by directing savings to investment, creating employment, and ensuring international competitiveness.
Purpose of the Investment Incentive System; Increasing the production of intermediate goods and products with high import dependency to reduce the current account deficit, supporting investments involving high and medium-high technology that will ensure technological transformation, increasing investment support provided to the least developed regions, reducing regional development disparities, increasing the effectiveness of support elements and supporting clustering activities.
What is Grant Credit?
It is a wrong pattern that we often encounter when communicating with our members who request state support. Grant is the amount that is not taken back, and credit is the amount that is taken back. When these two opposite words are combined, it creates a wrong concept. There is no such pattern as ‘grant credit’
The state, by the principle of the Social State, undertakes some projects to keep the economy afloat. There are many state-supported projects from business life to support, from health to education.
State-Supported Projects
Since living conditions are quite difficult today, the projects that are of most interest are projects related to state support and grant credits. The aid, grants, and support provided by the state are the most important projects that come to the aid of entrepreneurs, farmers, tradesmen, and all employees.
The state supports projects by displaying a stance in line with the principle of the social state through grants it makes in different areas and loans provided through banks.
Grant and Incentive Credits
The state; provides various incentives and grants for agriculture, animal husbandry, entrepreneurship, production, export, and education. Some of these loans are provided by KOSGEB, some by development agencies, and some support is provided in the form of tax exemption. Also, various grants and incentives and 0-interest loans are provided by state banks such as Ziraat Bank, Vakıfbank, and Halkbank.
- 30 thousand lira grant credit for tradesmen
- Entrepreneurs Grants given by KOSGEB
- State marriage support for newly married young people,
- Salary payment to grandmothers to look after their grandchildren (not given in 2020.)
- State housing contribution for those who want to buy a house, (25 percent rate)
- Promotional payments to retirees,
- Loans given by KOSGEB without interest or with suitable interest rates
- Ministry of Agriculture and Forestry support
- Interest-free agricultural loans and support will be given to people engaged in agriculture.
Projects continue to be supported with grants and incentive loans.
Apart from these supports, within the scope of State Supported Projects;
- Grants and Supports provided by TUBITAK,
- Development Agency Grants and Supports,
- European Union Credits and Grants,
- Turkish Technology Development Foundation (TTGV) supports,
- Ministry of Economy Incentive Grants and Supports,
- Foreign Trade Undersecretariat Grants and Supports,
- IPARD and IPARD-II Grants,
- Ministry of Industry incentives,
- International, National, and Local Support are provided.
