Import and export process, advantage of inward processing regime and repayment to exporter

All market in all over the World are now accessible as domestic market thanks to Globalization. Products that produced can export and import to miles away. With the operations of firm's export and import, varieties and competitions increase. Countries can create a market in different places of World, with their quality product. Foreign currency is provided and come thanks to this export operations. Also current account can be balanced. But it is not possible to explain this system with one or two sentences. Supporting exporter is very important for countries' economics. This financial support can be provided by government with encouragement and repayment. Thus, export companies have a role as a competitive. Entrance to these markets occur with some procedures and legal practice. Countries implement their own customs law or have an agreement with other countries about customs unions they can ease this process. There are some main customs regimes for operating this system. Inward processing regime is one of the main regime is an economic effective regime so it is applied as support to exporter. With the inward processing regime, countries intend to increase export. The main purpose and obligation of the regime is export the product that imported as under an operated. The regime can be used with inward processing permission, and inward processing permission document. Inward processing permission is given by Ministry of Trade, inward processing permission document was given by Ministry of Economics, but today Ministry of Trade. The regime can be used in two types. The first is suspension system, the second is draw back system. According to suspension system, in the scope of inward processing regime, tax of importgood is paid as warrant. The products that had operated after export, the firm can apply for refund the warrant then warrant is paid to exporter. Thus, the exporter firm has a financial benefit. If the system is used as a loop, firms can use this warrant as deposit for taking back another product from custom so this circulation is always continue. In addition, when the firm need cash this warrant can be used as cash. Another repayment to exporter is VAT. The exporter firms can not charge VAT to foreign companies with invoice. For this reason, the government pay back VAT that exporter pay when they buy semi finishing good, raw material, etc. for producing final product. Fo rbecoming this repayment, export invoice, export declaration, VAT incurred, VAT credit documents must be presented to revenue administration. VAT returns can be cash or on account. Generally, exporter companies prefer returns as on account. Under favour of return on account, insurance premiums, the income tax, with holding tax can be paid. Thus, cash outflow is blocked from cash. But the period that the firm need cash, VAT returns provide advantage to company as financial. Warrant return that ocur by inward processing regimeand VAT returns after export make the firms powerful about financial and has some advantages for competing on international area.