Mehmet Zeren: Inward Processing Regime is vital for competitiveness of Turkey’s exports

During the panel discussion at the SteelOrbis Market Talks Meeting held in Izmir on January 16, Mehmet Zeren, general secretary of Turkey's Steel Pipe Manufacturers Association, said that Turkey ranks first in Europe and fifth in the world in terms of pipe production, stating that in 2012 Turkey's pipe import volumes increased by 15.84 percent compared to the previous year, while the three biggest importing countries were Iraq, the US and Algeria, in order of importance.
 
Mr. Zeren underscored that Turkey's Inward Processing Regime (IPO) is one of the most important tools used to improve the country's export volumes and is vital for the competitiveness of Turkey's exports. He went on to explain that EU pipe producers are able to import flat steel with no customs duty so that they can produce more affordable pipes, while at the same time Turkey is benefiting from its Inward Processing Regime which enables it to compete with the EU. Zeren also argued that customs duties should be removed given the customs union agreement between Turkey and the EU. The regime in question, which aims at incentivizing Turkey's export activity, includes the reimbursement of taxes paid on imports after the exports of goods produced from the imported materials have been completed.
 
Regarding the amendments to the Inward Processing Regime, Zeren said that any antidumping duty in force will now be applied to imports which fall within the scope of the regime. Previously, if imported goods were subject to antidumping duty, imports under the Inward Processing Regime were exempt from the duty.
 
In conclusion, Mehmet Zeren pointed out that drilling and casing pipe demand has witnessed growth with the increase in shale gas extraction activity in the US.