Inward Processing and Authorized Economic Operator (AEO)

Inward Processing Regime Applications

Inward Processing Regime Applications
As is known, the current economic conditions, inflation, and economic fluctuations create critical bottlenecks for industries. These bottlenecks trigger high tax burdens that disrupt competition in foreign trade, as well as liquidity and financing problems in an interconnected manner.

At AGM, we prioritize helping our valued business partners, who are particularly affected by these conditions, benefit from the Inward Processing Regime, which includes various advantages outlined below. To provide more comprehensive services in this area, we established a dedicated department.

The service offered by AGM is approached as a project, including all stages from start to finish, as well as monitoring, performance evaluation, and project-specific analysis services beyond classical incentive consultancy.

  • Project Planning (Capacity Report Review, Production Input-Output Analysis, etc.)
  • Completion of System Documents and Management of the Document Acquisition Process
  • Document Revisions, Extensions, and Updates with Alignment of Declarations and IPR (Inward Processing Regime Certificate)
  • TEV (Tax Exemption Value) Calculations and Management
  • Weekly Reporting and Presentation
  • Acquisition and Preparation of Expert Reports
  • Entry of Domestically Purchased Goods Invoices and Sales Invoices into the System
  • Reconciliation and Entry of Sales Invoices in Document-to-Document Sales
  • Introduction and Management of Current Company Documents into the System
  • Management of the Document Closure Process

Periodic Reporting Includes:

  • Comparison and control of import and export declarations in terms of unit weight, unit price, etc., specified in the project, including identifying balances
  • Presentation of actual consumption tables and proposed consumption rates
  • Presentation of consumption tables for the EU and third countries
  • Warnings related to circulation and origin documents based on declarations
  • Presentation of Appendix-8 TEV table
  • Detection of deficiencies in information and documents before commitment closure (missing exports, incorrect declarations, incorrect import-export invoices, incorrect domestic purchase-sale invoices, missing circulation documents, unpaid TEV, undeclared waste ratio, secondary processed products or unit usage ratio, missing expert report, conformity certificates, sworn financial advisor report, if any, equivalent goods control, correct product weights, incorrect currency usage rate, etc.)

Advantages of the Inward Processing Regime:

  • Enhancing competitiveness of export products in international markets
  • Obtaining inputs for production at lower prices according to world market rates
  • Exemption from customs duties, VAT, SCT, and other taxes on imports
  • Tax, stamp duty, and fee exemption; KKDF (Resource Utilization Support Fund) exemption
  • Exemption from trade policy measures
  • Domestic purchases within the framework of the VAT Deferral-Exemption system
  • Possibility to perform domestic sales and deliveries in addition to exports
  • Reduction in the guarantees related to import taxes

In summary, companies planning to export can benefit from many effective conveniences and incentives, especially including exemption from various tax burdens on raw materials, auxiliary materials, semi-finished products, finished products, intermediate goods, and packaging materials used in the production of goods intended for export. We are here to support you in these applications.

Authorized Economic Operator (AEO) Certificate and Annual Activity Report Consultancy

The AEO Certificate provides significant advantages by speeding up and simplifying customs procedures for our business partners. This certificate reduces foreign trade costs by offering customs duty reductions and eases financial obligations. Additionally, it enhances the company’s reliability and partnership value internationally, improves risk management, and helps optimize business processes. Our business partners holding the AEO Certificate benefit from faster clearance at customs gates, thus optimizing their logistics processes and gaining a competitive advantage.

If your business meets the requirements, our expert team provides support throughout the AEO certification process. We assist you in completing all bureaucratic procedures and processes, particularly concerning document acquisition and subsequent steps.

Additionally, we assist our AEO-certified business partners with the preparation of Annual Activity Reports that must be completed each year. With over 30 years of experience, our expert auditors prepare these reports. Our specialist team examines our business partners’ annual activities thoroughly in line with the obligations brought by the AEO, preparing a report that clearly outlines areas for improvement, considering performance, risk management processes, advantages, disadvantages, and possible penalties.