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International Trade vocabulary · Customs and Tariffs

Inward processing

Meaning in international trade, with examples

nounCommon term

In international trade, inward processing means: A customs procedure that lets a company import materials without paying duties, provided it processes them and exports the finished products.

In Turkish: dahilde işleme rejimi, DİR

How it is used

A term from EU and Turkish customs law. In Turkey it is known as 'dahilde işleme rejimi' (DİR) and requires an authorisation such as an inward processing certificate. The company must export within a set period and show that it used the imported inputs.

Example sentences

  1. We import the yarn under inward processing, so we pay no duty as long as we export the fabric.

  2. The inward processing authorisation expires next month, so we need to finish the exports.

Common collocations

  • inward processing relief
  • under inward processing
  • inward processing authorisation
  • inward processing regime
  • duty drawbackA refund of customs duties paid on imported goods or materials when they are later exported, either unchanged or as part of a finished product.
  • customs dutyThe tax paid to customs on imported goods, calculated from their customs value, their HS code and sometimes their origin.
  • bonded warehouseA warehouse under customs control where imported goods can be stored without paying duties until they are released for sale or sent abroad again.
  • exportThe sale of goods or services to buyers in another country; also a product that is sold abroad in this way.

More terms: Customs and Tariffs

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