1. Customs Union and Common Customs Tariff (CCT)
Turkey’s foreign trade system is largely shaped within the framework of the Customs Union established with the European Union (EU). The Customs Union system mandates the complete abolition and prohibition of import and export duties, as well as taxes and charges having equivalent effect, among member states. In trade between the parties, all kinds of quantitative restrictions (quotas) and administrative measures that could have an equivalent effect to these restrictions are prohibited. Exceptional restrictions can be imposed in specific situations such as public morality, public policy, public security, the protection of human, animal, and plant health, and the protection of artistic, historical, and archaeological treasures or industrial, intellectual, and commercial property. Turkey is obliged to align with the EU’s Common Customs Tariff (CCT) in its trade with third countries within the scope of the Customs Union. The trade of agricultural products is subject to a unique regime; while unprocessed agricultural products are excluded from the general scope of free movement, the industrial component of processed agricultural products is exempted from tax, and import duty is applied only to the “agricultural component”.
2. Additional Customs Duties (İGV) and Exempt Countries
Beyond standard customs duties, “Additional Customs Duties” (İGV) are collected in Turkey based on the authority of the executive branch in order to intervene in foreign trade. İGV is applied as an element of Turkey’s import regime and a tool of protectionist policies. These additional taxes, which were first implemented in Turkey within the textile sector in 2011, were expanded to cover thousands of products, especially during the COVID-19 pandemic, and have become a frequently used financial tool.
There are geographical exemptions critical for international supply chains; Additional Customs Duty is applied at a rate of zero percent (0%) to goods imported with an A.TR movement certificate (except in exceptional cases). In this way, no additional customs duty burden arises in trade with the 27 EU member states. Furthermore, İGV is not applied to imports from countries with which Turkey has signed a Free Trade Agreement (FTA) and which are included in the cross-cumulation system, provided that proofs of origin are submitted. Within the framework of the Customs Union and Free Trade Agreements, a total of 51 countries are exempt from additional customs duties.
“Our country currently has FTAs in force with 24 countries (EFTA, Macedonia, Bosnia and Herzegovina, Palestine, Tunisia, Morocco, Egypt, Albania, Georgia, Montenegro, Serbia, Chile, Mauritius, South Korea, Malaysia, Moldova, Faroe Islands, Singapore, Kosovo, Venezuela, United Kingdom, UAE, and Qatar). On the other hand, the FTAs with Lebanon, Sudan, and Ukraine will enter into force following the completion of domestic approval processes. Within the framework of updating existing FTAs and expanding their scope, the Protocols signed for the update of the Serbia FTA entered into force on June 1, 2019, the revised Turkey-Bosnia and Herzegovina FTA on August 1, 2021, the revised Turkey-EFTA FTA on October 1, 2021, the new Turkey-Montenegro Protocols on July 1, 2022, and the Protocol for the update of the Turkey-Malaysia FTA on August 1, 2024. In addition, Protocols expanding the Georgia FTA have been signed and will enter into force following domestic approval processes.”
3. Legal Certainty and Predictability in Import Processes
Since the completion of foreign trade transactions requires a long period of time and customs duties are closely related to property rights, the principle of legal certainty constitutes a fundamental basis in making commercial decisions. Before starting import transactions, commercial enterprises make their cost and profitability calculations according to the existing laws and regulations on the transaction date. In an import transaction, if a new additional customs duty comes into force after the goods have been purchased from abroad, loaded onto the ship, and set off, but before they reach Turkey, the immediate application of this new cost constitutes a violation of the principles of legal certainty and predictability.
According to the decisions of the Council of State, instead of immediately implementing regulations that impose additional financial obligations on individuals, the administration should foresee transitional provisions (postponement periods) in order to protect acquired rights and legitimate expectations. Importers facing such sudden legislative changes and unexpected tax increases can pay the relevant tax with a reservation to clear the goods from customs, and subsequently file an annulment lawsuit in the administrative judiciary requesting the refund of the collected amount.
4.Protection of Intellectual, Industrial, and Commercial Property Rights at Customs
Turkish customs have strong protection mechanisms, compliant with international agreements (especially the TRIPS agreement), to prevent the entry of counterfeit or pirated products into the country. Customs procedures for goods that infringe upon a foreign right holder’s registered trademark, patent, copyright, industrial design, or geographical indication can be temporarily suspended by customs administrations upon the direct request of the right holder.
Within ten (10) days following the notification of the suspension decision issued by the customs administration to the right holder, the right holder must file a lawsuit on the merits in the competent court or obtain an injunction from the court. If a lawsuit is filed within the legal period and an intellectual property infringement is determined, the counterfeit goods in question can be destroyed in accordance with the court decision or liquidated by changing their essential characteristics and selling them.