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 areas governed by Free Zones Law No. 3218, whose location and boundaries are set by the President (Art. 2). Under Article 6, free zones are part of the Turkish customs territory but are deemed outside it for import duties, trade-policy measures and the exchange regime. While goods remain in the zone, customs duty is not charged, and import VAT and special consumption tax (ÖTV) do not apply (VAT Law No. 3065, Art. 16/1-c; SCT Law No. 4760, Art. 7/7). There is no time limit on how long goods may stay (Customs Law No. 4458, Art. 156). Foreign investors may transfer their capital and profits abroad, after notifying the zone directorate (Free Zones Implementing Regulation, Art. 47).
Read the full section
The advantages go further for producers. Under provisional Article 3 of Law No. 3218, a manufacturer’s earnings from selling goods it manufactures in the zone abroad, within the zone or to other free zones are exempt from income or corporate tax until the end of the tax period of the year in which Türkiye becomes a full EU member. Where a taxpayer exports at least 85% of the FOB value of the products made in the zone, the income tax calculated on its employees’ wages is cancelled. 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 (Law No. 3218, Art. 5), 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; trade between a free zone and the rest of Türkiye is subject to the foreign trade regime (Law No. 3218, Art. 8), so goods entering the domestic market 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 rules, provides a set of special regimes that suspend or reduce duty for goods with a defined purpose. The table below summarises them.
Read the full section
| Regime | Turkish name | What it does | Typical user |
|---|---|---|---|
| Inward processing | Dahilde İşleme (DİR) | Import inputs without paying import duties (secured by a guarantee) to process and re-export | Manufacturer-exporter |
| Outward processing | Hariçte İşleme | Send goods abroad for processing, re-import with total or partial relief | Manufacturer / repairer |
| Customs warehousing | Antrepo | Store goods not in free circulation 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. Under Article 108 of the Customs Law, a manufacturer can import inputs and raw materials without paying import duties, which are secured by a guarantee that is released once the processed goods are exported (the suspension system), or pay the import duties and have them refunded after export (the drawback system). It runs on an inward-processing authorisation certificate (dahilde işleme izin belgesi) from the Ministry of Trade or an inward-processing authorisation from the customs administration, and it carries an export commitment that must be met within the authorisation period.
If the export commitment is not met within the authorisation period, the secured import taxes are collected and administrative fines may follow (Customs Law, Art. 238 and 241). 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 goods not in free circulation under customs control without paying import duties (Customs Law, Art. 93) until they are released for free circulation or re-exported, which is 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 total or partial relief from import duties. Transit (TIR / NCTS) moves goods across Türkiye under customs seal without clearing them for the domestic market. It is 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.
Read the full section
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, and we also handle company formation, 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.
Related Practice Areas & Strategic Legal Guides
Show the 4 points
- Customs Law & Trade Compliance: Customs valuation, tariff disputes, and duty exemptions under Law No. 4458.
- Tax Law & Cross-Border Structuring: Corporate tax planning, withholding exemptions, and double taxation treaty (DTT) relief.
- Free Zones & Customs Regimes: Inward Processing Regime (DİR), bonded warehousing, and free-zone tax exemptions.
- Legal Matters in Istanbul for Foreign Clients and Companies: Tax and customs litigation before the Istanbul tax courts.
