Understanding new customs and trade regulations in Türkiye

When navigating the complex landscape of international trade, understanding the customs and trade regulations of the target country is crucial for foreign companies. For those looking to engage in trade with Türkiye, the recent amendments to the country’s customs laws and trade policies are particularly important to note. As of 2024, several significant changes have been implemented, which will impact how goods are imported and exported.

Key changes in customs and taxation

One of the most noteworthy changes is the increase in tax rates applied to imported goods. Effective August 21, 2024, the fixed tax rate for goods imported from European Union (EU) member states has been raised from 20% to 30%, while the rate for goods imported from non-EU countries has been increased from 30% to 60%. These tax increases are expected to significantly raise the costs of trade, especially within the framework of the customs union agreements with the EU. Additionally, certain goods listed under the Special Consumption Tax Law No. 4760 will be subject to an additional 20% tax, further complicating the tax landscape for importers.

Another critical amendment is the reduction of the threshold for duty-free processing of goods imported via postal or express cargo services. The previous threshold of 150 Euros has been reduced to 30 Euros, meaning all purchases exceeding 30 Euros will now require full declaration instead of the simplified declaration method. This change necessitates that companies involved in express cargo shipments exceeding 30 Euros must be authorized and provide the necessary documents to carry out customs procedures. This reduction in the duty-free threshold is likely to increase the administrative burden on companies and individuals importing goods into Türkiye.

Import/export compliance tips

For companies involved in the import/export business, understanding these new regulations is vital to avoid delays and penalties. Here are some key import/export tips to keep in mind:

• First, it is essential to identify the regulations and taxes applicable to the goods being imported. This includes knowing the Harmonized System (HS) code associated with the product, as import duties are calculated based on the value of the product and its classification under Turkish customs codes. Companies must also obtain a Certificate of Origin or the relevant HS code to ensure compliance with Turkish customs regulations.
• Second, certain products require special licenses or permits before they can be imported into Türkiye. For example, food products, chemicals, and pharmaceuticals need special authorization from relevant government authorities. Ensuring that all necessary permits are in place before the import process begins can save time and avoid potential legal issues.
• Third, payment of import duties and taxes is a critical step in the import process. Companies must pay duties and taxes according to the rate applicable for each item being imported, based on its classification under the HS code system. Using a professional service provider, such as an Importer of Record (IOR), can be highly beneficial in navigating these complexities.

Sector-specific changes in 2024

In addition to these general tips, specific sectors have seen significant changes in 2024. For instance, as of June 6, 2024, Türkiye announced the suspension of wheat imports under the Inward Processing Regime from June 21 to October 15, 2024. This suspension, combined with the liberalization of exports of milling wheat, durum wheat, and barley, reflects a strategic shift in Türkiye’s wheat trade policy.

For foreign companies considering importing products from Türkiye, several sectors offer promising opportunities. Knitwear and fashion apparel, for example, have seen significant growth, with exports valued at $19.3 billion in 2023 and expected to continue growing in 2024. Jewelry is another lucrative sector, with an estimated value of $12 billion for 2024. Turkish carpets, furniture, and ceramics also represent substantial export markets, benefiting from Türkiye’s preferential trading agreements with the EU.

Conclusion

Given the recent amendments and ongoing trade policies, it is crucial for foreign companies to stay updated and adapt their commercial processes accordingly. The new regulations under Customs Law No. 4458 signify a fundamental transformation in Türkiye’s customs policies, and compliance is key to avoiding legal and financial repercussions.

In conclusion, the customs and trade regulations in Türkiye have undergone significant changes in 2024, impacting both importers and exporters. Understanding these changes, from increased tax rates to reduced duty-free thresholds, is essential for navigating the Turkish market successfully. By staying informed and adhering to the new regulations, foreign companies can ensure smooth and compliant trade operations in Türkiye. As the trade landscape continues to evolve, staying vigilant and adaptable will be crucial for maintaining a competitive edge in this dynamic market.