Even though they seek to protect local industries and regulate the entry of goods, import duties are still the most effective strategies used by governments in the quest for revenue. Turkey applies tariffs when an item enters the country; these are charges that vary depending on the type of product, country of origin, or international relations. The basis on which these charges are calculated is referred to as customs value of the goods which at the time of entry into the country incorporates cost, insurance and freight (CIF) of the goods. Being a member of the Common Custom Tariff of the EU and the WTO, the system of import duties of Turkey is in line with the principles of international trade. Although these taxes serve their purpose of maintaining certain industries within the country, these taxes are also important as far as the government is concerned as they generate revenue.
Customs union with the European Union
A major influence on Turkey’s import tariff policy is the EU customs union, which has existed since 1996. The unrestricted flow of commodities entering Turkey from EU member states is permitted under this agreement, free from customs charges. However, Turkey has accepted the EU’s Common Customs Tariff for uniformity, which applies to non-EU products imported into Turkey. Value Added Tax (VAT) and Special Consumption Tax (SCT) are two extra taxes that may still be applicable even when EU-origin items are free from customs duties. For businesses to get duty-free treatment, they must also make sure that their items are accompanied by the appropriate paperwork, such as a certificate of origin, when they import from EU nations.
Import duty rates and classification
Turkey uses the Harmonized System (HS) of products categorization, which gives each product category a unique code. This duty rate is determined by the item’s HS code. Basic food products and medical supplies are examples of essential commodities that often have reduced tariffs or are even duty-free, indicating their vital value. On the other hand, high-end electronics, luxury items, and commodities that rival those created in Turkey sometimes have higher duty rates—up to 20%. In order to compute the exact tax rate and adhere to customs requirements, importers must identify the relevant HS code.
Fees and taxes on imported products
A number of taxes and levies are applied to products entering Turkey in addition to import tariffs. Applying to almost all imports, the Value Added Tax (VAT) is one of the most important. Although some commodities, such agricultural products or medications, are subject to lower rates of 1% or 8%, the usual VAT rate in Turkey is 18%. Another significant tax is the Special Consumption Tax (SCT), which is levied on luxury items, automobiles, and certain groups like alcohol and tobacco. The nature and value of the product determine how much it costs. In addition, a customs processing fee is assessed to cover administrative expenses, and certain imports—especially those involving electronics and plastics—may be subject to environmental levies.
Impact of free trade agreements
Due to its involvement in many Free Trade Agreements (FTAs), Turkey is able to offer products coming from partner nations discounted or zero-duty rates. The goals of these agreements are to lower importers’ prices and advance commerce with countries like South Korea, Singapore, and members of the European Free commerce Association (EFTA). In order to get these favorable rates, importers must provide a valid certificate of origin at customs clearance and adhere to certain norms of origin. Even while free trade agreements (FTAs) may drastically lower tariff costs, companies still need to be mindful of their responsibilities under these accords to prevent fines or delays.
Non-tariff barriers and compliance
Importers must deal with a number of non-tariff obstacles imposed by Turkey in addition to tariffs and taxes. In addition to adhering to Turkish technical standards for safety, labeling, and quality, they also include licensing requirements for certain products, such chemicals and medications. Customs may also check goods to make sure they adhere to legal requirements. The successful operation of the import process depends on proper paperwork. Bills of lading, certificates of origin, packing lists, business invoices, and any relevant import permits are all necessary paperwork. Importers that don’t comply with these regulations risk delays, extra expenses, or having their products rejected at the border.
Key considerations for importers
Planning beforehand and following the rules are essential for importing products into Turkey successfully. The entire expense of bringing things into the country should be assessed by shippers, considering all costs like customs, duties, and charges. Since Turkey’s exchange rules and obligation rates are dependent upon future developments because of political or financial occasions, remaining informed about any changes is significant. Working with knowledgeable customs brokers may help companies handling complicated imports avoid regulatory pitfalls and maintain compliance. To prevent any problems, it’s also essential to comprehend sector-specific regulations, such as those pertaining to imports of electronics or automobiles.
You may also find these articles helpful
