With the new regulation introduced by the Ministry of Trade regarding the Inward Processing Regime (IPR), the periods of the Inward Processing Authorization Certificate (IPAC) have been shortened, while a requirement has been introduced to procure at least 25 percent of the inputs domestically for the production of goods to be used in exports. Murat Yalçıntaş, General Manager of OYAK and Chairman of the Board of Erdemir, stated that the new regulation is of a nature that will support the demand for domestic steel and will have a positive impact on the capacity utilization of local producers in the steel industry.
With the new regulation on the Inward Processing Regime, while inward processing periods have been shortened, a requirement has been imposed to source at least 25 percent domestically for the production of goods to be used in exports. Taking into account Türkiye’s increasing production capacity and the diversification of steel grades, the new regulation does not pose any obstacle for exporting companies, while it will increase demand for domestic production. Türkiye, where domestic steel producers have made significant investments in recent years, continues to maintain its self-sufficiency both in terms of steel production volume and the diversity of steel grades.
Evaluating the regulation put into effect by the Ministry of Trade to protect domestic production as a positive step for the future of the industry, Murat Yalçıntaş, General Manager of OYAK and Chairman of the Board of Erdemir, stated: “The future of Turkish industry lies in strengthening domestic production capacity. Together with our group companies, we are resolutely continuing our investments that steer our country’s industry. With this new regulation put into force by our Ministry of Trade, both the balance of the domestic market will be preserved and the added value generated by our country will remain within the country. In this way, the future of the steel industry, which ranks among our strategic sectors and constitutes the cornerstone of many other industries, will be secured.”
Emphasizing that supporting domestic producers against unfair competition is important both for the steel industry and for other related sectors, Yalçıntaş said: “This regulation implemented by our Ministry of Trade will also have a positive impact on the foreign trade balance by shortening the period between the foreign exchange outflow originating from imports and the foreign exchange inflow originating from exports. The new regulation will support domestic producers and prevent unfair competition conditions. With the increase in demand for domestic steel, our capacity utilization rates will rise, investments will be encouraged, and, most importantly, Turkish industry will gain strength.”
