Moving goods across the Turkish border does not always mean paying duty at the border. Türkiye’s free zones and a family of duty-relief customs regimes let manufacturers, distributors and re-exporters suspend or avoid customs duty, import VAT and other charges — provided both the goods and the paperwork follow the rules. Used well, these tools make Türkiye a competitive base for manufacture-for-export, regional distribution and re-export. Used carelessly, a single unmet condition can bring the suspended duties back, with penalties. This page explains the main regimes and how we help you choose and run the right one.
Free Zones under Law No. 3218
Free zones are designated areas governed by Free Zones Law No. 3218, with around 18 to 19 zones sited near Türkiye’s major ports and industrial centres. Legally, goods inside a free zone are treated as outside the customs territory: while they remain in the zone, customs duty, import VAT and special consumption tax (ÖTV) do not apply, and there is no time limit on how long they may stay. Profits earned in the zone can be transferred abroad freely.
The advantages go further for producers. A manufacturing company can benefit from corporate- and income-tax exemptions on earnings from goods it produces and exports — a benefit tied to Türkiye’s EU-accession and Customs Union framework and subject to conditions — and a wage-income exemption applies where a high share, around 85%, of production is exported. These reliefs sit alongside the country’s wider investment incentive regime and can be decisive for an export-oriented plant.
Operating in a zone is not automatic: it requires an operating licence (faaliyet ruhsatı) from the Ministry of Trade, granted for a defined activity such as manufacturing, storage or trading.
A free zone is not a tax-free bubble in every direction. The exemptions attach to goods that stay in the zone or leave for export; the moment goods enter Türkiye’s domestic market they are imported like any others, with duty and VAT assessed on entry. Model both flows — inward and onward — before you commit to a zone.
The Duty-Relief Customs Regimes
Outside the free zones, Customs Law No. 4458 — broadly harmonised with the EU Customs Code — provides a set of special regimes that suspend or reduce duty for goods with a defined purpose. The table below summarises them.
| Regime | Turkish name | What it does | Typical user |
|---|---|---|---|
| Inward processing | Dahilde İşleme (DİR) | Import inputs without duty and VAT to process and re-export | Manufacturer-exporter |
| Outward processing | Hariçte İşleme | Send goods abroad for processing, re-import with partial relief | Manufacturer / repairer |
| Customs warehousing | Antrepo | Store non-Union goods under customs control, duty deferred | Distributor / trader |
| Temporary importation | Geçici İthalat | Bring goods in temporarily with total or partial relief (ATA Carnet) | Exhibitors, contractors |
| Transit | Transit (TIR / NCTS) | Move goods through Türkiye under customs control | Logistics / forwarders |
Inward Processing (DİR)
The Inward Processing Regime (Dahilde İşleme Rejimi — DİR) is the workhorse for Turkish exporters. It lets a manufacturer import inputs and raw materials without paying customs duty and VAT — the suspension system — or pay and later reclaim them under the drawback system, so long as the finished goods are exported. It runs on an inward-processing authorisation certificate (dahilde işleme izin belgesi) from the Ministry of Trade, and it carries an export commitment and a time limit.
If the export commitment is not met within the time limit, the suspended duties plus penalties fall due. Inward processing is powerful, but it is a promise to export — track your commitment volumes and closing dates from day one, and keep records that link imported inputs to exported goods.
Warehousing, temporary import, outward processing and transit
Customs warehousing (antrepo) lets you store non-Union goods under customs control without paying duties until they are released for free circulation or re-exported — useful for distribution hubs that break bulk for several markets. Temporary importation (geçici ithalat) brings goods in for a limited purpose, such as exhibitions or professional equipment, with total or partial relief, frequently under an ATA Carnet. Outward processing (hariçte işleme) is the mirror image of DİR: goods go abroad for processing and return with partial duty relief. Transit (TIR / NCTS) moves goods across Türkiye under customs seal without clearing them for the domestic market — the backbone of overland trade and closely connected to maritime and multimodal transport. Each of these interacts with the ordinary import and export regime and with customs valuation and tariff classification, so the documentation must line up.
Who Benefits
These regimes reward three business models in particular:
- Manufacture-for-export — a plant importing components duty-free under DİR, or producing inside a free zone, and shipping finished goods abroad.
- Regional distribution hubs — traders holding stock in a free zone or antrepo, deferring duty until goods are allocated to a market or re-exported.
- Re-export and transit — operators routing goods through Türkiye to third countries without them ever entering domestic free circulation.
For each, the right choice depends on where inputs come from, where output goes and how long goods sit in between. Setting up the operating entity is part of the picture — our company-formation team handles that — but the regime decision comes first, because it shapes the cost base of the whole operation.
Our Approach
We advise manufacturers, importers, distributors and logistics operators on choosing and running the free-zone or duty-relief regime that fits their trade. That means mapping the flow of goods, comparing a free-zone operating licence against inward processing, warehousing, temporary importation and transit, securing the necessary authorisation and export-commitment terms, and keeping the reliefs intact through disciplined records and readiness for post-clearance audit (sonradan kontrol). Where a plan also touches valuation, origin or trade-defence measures, we align those issues from the outset so the structure holds together. Contact us to discuss the customs regime that best fits your operation in Türkiye.
How we structure your duty-relief strategy
- 01
Map the trade flow
We trace where inputs come from, where output goes and how long goods sit in between, to see which regime — free zone, inward processing or warehousing — fits your operation.
- 02
Choose the regime and location
We compare a free-zone operating licence against inward processing, outward processing, customs warehousing, temporary importation and transit, and recommend the right combination.
- 03
Secure the authorisation
We apply for the operating licence or inward-processing certificate and plan the export commitment, time limits and documentation the regime requires.
- 04
Structure and establish
We set up the operating entity where needed and align customs registrations, valuation and origin evidence so the reliefs are properly grounded.
- 05
Operate and stay compliant
We help manage export commitments, records and readiness for post-clearance audit so the reliefs hold and the suspended duties never fall due.
Frequently asked questions
What is a free zone and why would a trader use one?
A free zone is a designated area governed by Free Zones Law No. 3218, of which there are around 18 to 19 across Türkiye, generally near major ports and industrial centres. Legally, goods inside a free zone are treated as outside the customs territory, so while they remain there customs duty, import VAT and special consumption tax do not apply, there is no time limit on how long they may stay, and profits can be transferred abroad freely. Free zones suit manufacture-for-export, regional distribution hubs and re-export operations.
What tax advantages does operating in a free zone offer?
Beyond the suspension of customs duty, import VAT and special consumption tax on goods held in the zone, a manufacturing company can benefit from corporate- and income-tax exemptions on earnings from goods it produces and exports — a benefit tied to Türkiye's EU-accession and Customs Union framework and subject to conditions. A wage-income exemption also applies where a high share, around 85%, of production is exported. Operating in a zone requires an operating licence (faaliyet ruhsatı) from the Ministry of Trade.
What is the Inward Processing Regime (DİR)?
The Inward Processing Regime (Dahilde İşleme Rejimi — DİR) lets a manufacturer import inputs and raw materials without paying customs duty and VAT — the suspension system — or pay and later reclaim them under the drawback system, provided the processed goods are then exported. It runs on an inward-processing authorisation certificate (dahilde işleme izin belgesi) from the Ministry of Trade and carries an export commitment and a time limit. It is a central tool for Turkish manufacturers and exporters.
What happens if I do not meet the export commitment under inward processing?
If the export commitment tied to the inward-processing certificate is not met within the time limit, the customs duty and VAT that were suspended fall due, together with penalties. In other words, the relief is conditional: it is granted against a promise to export, and the promise is enforced. This is why export commitments and closing dates must be tracked from the outset and why records need to demonstrate that inputs were genuinely used in exported goods.
What is the difference between customs warehousing, temporary importation and transit?
Customs warehousing (antrepo) lets you store non-Union goods under customs control without paying duties until they are released for free circulation or re-exported. Temporary importation (geçici ithalat) brings goods in for a limited purpose — for example exhibitions or professional equipment — with total or partial relief, often under an ATA Carnet. Transit (Transit Rejimi) moves goods through Türkiye under customs control, using TIR or the NCTS system, without clearing them for the domestic market. Each serves a different point in the supply chain.
Who benefits most from these free-zone and duty-relief regimes?
Three business models benefit in particular. Manufacture-for-export operations import components duty-free under DİR or produce in a free zone and ship finished goods abroad. Regional distribution hubs hold stock in a free zone or customs warehouse, deferring duty until goods are allocated to a market or re-exported. Re-export and transit operators route goods through Türkiye to third countries without them entering domestic free circulation. The right choice depends on where inputs come from, where output goes and how long goods sit in between.