In the article published by Borsa Istanbul A.Ş. on 23.12.2024, it is stated that "With the regulation made by the Ministry, it has been deemed appropriate for the import of unprocessed gold to be carried out within the scope of the Inward Processing Regime on and after 20.12.2024 by means of payment against goods."
To explain what is meant by this;
1- What are the payment methods?
Cash against goods, cash and free payment methods are forms that show how the price of money or goods will be paid.
2- What is the cash payment method?
Cash Payment Method: You can transfer the money before import and the transfer ID number is shown in the declaration. It can also be made to a third company that you want to export as the owner of the goods.
3- What is the free payment method?
Free Payment Method: It indicates that the goods are processed by the company and exported again to the same company or the company it refers to, in the form of inward processing permission (as bullion or jewellery). Shopping in import-export here is limited to the labor cost.
4- What is the payment method against goods?
Payment method against goods: It is a definition used in cases where the payment is defined as open account and the value of the imported goods is not paid during import. It is subject to 6% KKDF fund on the invoice amount.
Specified in the Article (DIR – Inward Processing Regime)
Since it is an Inward Processing Regime and is exempt from KKDF tax, transactions can be made exempt from KKDF even if it is in the form of Standard or non-standard gold Payment Against Goods. Companies that are members or non-members of the stock exchange can temporarily import standard or wedge bullion as an open account (by borrowing) and export it as a product after processing, provided that they are within the scope of the Inward Processing Regime.
To explain this with examples:
Example 1)
- Let's assume that 10 kg of standard gold bullion is imported from Company A from Dubai as temporary import (within the scope of DIR) and the gold value is exported at $900,000, and a 22 carat bracelet is exported at a labor cost of $10,000.
- Since the exporter purchased the product from Dubai by borrowing $900,000, he can sell it at the daily gold rate or the incoming exchange rate.
- The goods must be exported to the company sending the goods to Dubai or to third companies at the total amount of Gold Value + labor.
• Export scenario to Dubai to the same company:
Import declaration Export declaration
Payment method Cash against goods | against goods
Amount $900,000 | $910,000
Amount to be brought back to the country or amount to be offset
Since jewellery is exported in return for pure gold received under the inward processing regime, the declaration will be closed and the liability arising from inward processing will end.
In terms of the Foreign Exchange Regime, since imports/exports are made from the same company, the import/export costs will be offset through the Bank Channel and an export labor fee of $10,000 will be charged and the Foreign Exchange account will be closed. This method will practically enable small exporters to receive their export payment in gold (wedge/standard gold).
Example 2)
The wedge/standard gold bullion purchased from Dubai will be processed and sold to the 3rd country and company (Ex: 3rd Country = Germany).
Sales scenario to a different company
IMPORT DECLARATION EXPORT DECLARATION
Payment method: Against goods
Amount: $900,000 $910,000 in exchange for goods
He owes $900,000 to Dubai company. He is credited $10,000 from Company 3.
Since jewellery is exported in return for pure gold received under the inward processing regime, the declaration will be closed and the liability arising from inward processing will end.
In terms of the Foreign Exchange Regime, the export proceeds must be brought to the country within 6 months through the Bank/Declaration Channel.