Is Turkey’s Inward Processing System being misused?

At the 7th SteelOrbis Turkish Steel Market Conference, held in Istanbul on November 16 with the sponsorship of Turkish integrated steelmaker Erdemir, panelists discussed Turkey's Inward Processing Regime (IPO). The regime aims at incentivizing Turkey's exports includes the reimbursement of taxes paid on imports after the exports of goods produced from the imported materials have been completed.
 
MMK Metalurji sales director Mehmet Cakmur said that MMK Metalurji is not against the system, but added that there must be certain guidelines. Mr. Cakmur stressed that the most important point is that the exported product should be produced using the imported material, stating that "import should precede export".
 
Dr. Veysel Yayan, general secretary of the Turkish Iron and Steel Producers' Association, stated that even if the exported materials are not actually produced from the specified imported materials, the exported product should be at least consistent with the imported product or else the Inward Processing Regime will turn into a system of privilege.
 
Regarding the import-export cycle, Mehmet Zeren, general secretary of the Turkish Steel Pipe Manufacturers Association (CEBID), said that, to meet delivery times, in his view raw materials could be provided from existing inventories. He suggested that necessary steps should be taken to prevent injury to the industry, in the event of any discrepancies between the exported and imported product.