istisna

Istisna is a term used in different contexts to denote an exemption or a forward manufacturing contract, depending on the linguistic and legal framework. In Turkish usage, istisna broadly means exemption or exception—from a rule, obligation, or duty. It appears in administrative and fiscal language as tax istisnası (tax exemption) or other forms of statutory or administrative relief. The concept denotes permission to be relieved from applying a rule or to have a particular case carved out from general provisions, often subject to specific conditions or time limits.

In Islamic finance, istisna (also written istisnā’ or istisna’) refers to a contract by which a buyer orders the manufacture or construction of goods that do not yet exist or are not readily available. The seller agrees to produce and deliver the specified item on a future date, with agreed payment terms. Istisna is a form of sale with manufacturing and delivery components and is used to finance capital-intensive projects such as buildings, machinery, or infrastructure. Key elements typically include the product specifications, production timeline, price, payment schedule, and acceptance criteria. The contract allocates risks and responsibilities for quality, production delays, and delivery, and it is evaluated under Shariah principles, with juristic opinions varying on particular conditions and arrangements.

Overall, istisna encompasses both the general idea of exemption in legal and administrative contexts and a specific, structured financing contract in Islamic law.