1. The owner of the factory submits a written petition to the Customs Department for the purpose of acquiring the necessary approval to make use of the fees refund system according to the following:
a. Attaching the factory’s Certificate of Registration from the Ministry of Industry and Trade to the petition.
b. Filling out the relevant form with the required information about the factory, the number of workers, the industrial machines, the production lines and the materials intended to be imported under the fees refund system and the materials intended to be manufactured and exported, the factory’s address and other information.
c. This petition is submitted only once provided that the import statements indicate that it falls under the fees refund system.
2. The owner of the factory includes with the above-mentioned application a detailed and accurate study of the manufacturing formula of his products and the industrial inputs in terms of main, backup, complementary or necessary primary materials for the production and the input percentages, as well as the percentage of the damage and other technical information related to the production and the manufacturing process.
3. All primary materials and industrial inputs that are necessary for production and that enter in the manufacturing, inclusive of exempt materials under the customs tariff, are permitted for import.
4. Refund applications for custom duties, fees and other taxes for the purpose of manufacturing and export are accepted within a period of three years from the date of paying the customs duties on the transaction related to the customs duties refund process.
5. Customs transactions related to fees refund as well as all procedures related to export are conducted directly in the customs entry centers without the need to acquire prior approvals from the Customs Department, unless it is necessary to do so.
6. The Customs Department retains the right to subject imported and exported goods to all customs procedures, including laboratory tests, to verify their compatibility with standards and manufacturing formulas.
7. Manufactured products may be exported in stages and in accordance with original export statements on which the numbers of fees refund statements of the manufactured products are fixed.
8. The source of the goods may be other than the importer, provided that the Department’s approval is acquired prior to the transfer of the export liability from the importer to the exporter.
9. The manufacturing of primary materials imported under the fees refund system may be completed in other alternative factories to which the fees refund system applies in order to complete the manufacturing process, provided that the necessary prior approval is acquired.
10. Samples from textiles, leather and other materials, from which samples need to be taken prior to the manufacturing process, are acquired at the customs center directly at the time of surveying the contents the inward processing declaration, provided that they are stamped and signed by the surveyor and the number of the declaration is attached to be presented after manufacturing and at the time of export.
11. Customs duties and the general sales tax are refunded only after presenting the duly issued copy of the export declaration (refund copy) and on which the number of the fees refund declaration of the exported materials is fixed.
12. Taking into consideration the provisions of the General Sales Tax Law number 6 for the year 1994 and its amendments, all customs duties and the general sales tax that were paid at the time of import are refunded for materials that entered in the manufacturing of the final local product and the refund shall not be affected by currency exchanges or the increase and decrease in customs tariffs.
All procedures take place in the Customs Department according to the following:
a. A special account is opened where all amounts collected under the fees refund system are deposited.
b. Customs duties, fees and other taxes related to fees refund transactions are collected by customs centers accountants and are entered in a special account called the fees refund trust, with the exception of the general sales tax, and are then deposited in the Central Bank in this account (fees refund trust).
c. The relevant person submits a fees refund application to the Temporary Entry Directorate requesting the refund of fees and attaching all the necessary documents, which are:
1. A petition that indicated the amount on which fees refund is required.
2. A duly issued copy of the export declaration (refund copy) and on which the number of the fees refund statement by which the exported materials were imported is fixed.
3. A copy of the invoice certified by the Temporary Entry Directorate sealed as per the rules upon unloading.
d. The documents are attached to the application and submitted to the Temporary Entry Directorate, which indicates the amount of customs duties and the general sales tax to be refunded.
e. The transaction along with all the documents are presented to the Internal Control Directorate and the accounting division for endorsem*nt and issuing the refund.
f. A formal letter is prepared in light of the approval of the financial affairs directorate for the purpose of refunding the due amounts to the concerned persons and the transaction and all the documents are attached to the letter.
g. In the case of refunding customs duties, fees and other taxes in stages, the Temporary Entry Directorate prepares a schedule sealed by the Directorate and attaches it to the original customs transaction, whereby it becomes part of the transaction, and in which all refunded payments are entered along with indicating that on the copy of received payments.
h. The financial affairs directorate prepares a payment receipt on the basis of the letter of the directorate of specialty, and when the receipt undergoes all the procedures, the necessary financial transfer is issued to the concerned person and is registered in the checks delivery register according to special procedures set by the financial affairs directorate for the purpose of organizing the revenues and refunds of the special account.
i. All amounts for which the statutory limit of time elapsed and during which fees refund procedures have not been completed, as well as amounts on materials that are proposed for local consumption, are transferred from the fees refund trust to the general revenue, in line with a letter issued by the financial affairs directorate as per the instructions in effect.
13. Taking into consideration the provisions of the General Sales Tax Law number 6 for the year 1994 and its amendments, customs duties and the general sales tax payable on primary materials and inputs needed for manufacturing the local product, and which did not acquire prior approval from the Customs Department for import under the fees refund system, are refunded upon export, provided that the following is taken into consideration when applying to benefit from this status:
a. The person concerned submits a petition in writing to the Customs Department and fills out the form prepared for this purpose, verifying the class, type and value of fees of materials that will enter in the manufacturing of the final product, and after the Department carries out an inspection of the primary material prior to manufacturing and export.
b. The importer must be a manufacturer and a member of the fees refund system.
c. The time period since the payment of customs duties, fees and other taxes and since the manufacturing and export of the primary materials that entered in the manufacturing of the final local product must not have exceeded three years.
d. Customs duties, fees and other taxes that will be refunded after manufacturing and exportation are calculated according to customs tariffs and according to the estimation of the value that is fixed on the import declaration and according to the manufacturing formulas.
e. Customs duties, fees and other taxes that are paid after they are calculated are refunded via the Ministry of Finance in accordance with financial procedures in effect.
14. Customs duties, fees and other taxes are refunded after they are calculated within one month from the date of submitting the refund petition.
