Overall, this article gives a short analysis of the customs duties in Turkey. Undoubtedly, Turkey presents several advantages to exporters or importers. Indeed Turkey enjoys a business-friendly environment and low production costs at the nexus of Asia and Europe. In the meantime, entrepreneurs must undertake certain legal customs.
What kind of customs formalities are subject to the taxation in Turkey?
Under the Turkish legal system, customs duties in Turkey consist of all the export and import duties applied to goods subject to the relevant legislation in force. Generally speaking, the Turkish Custom Code (No:4458) is the fundamental text stipulating customs duties.
Under Article 8, "customs duties" implies all the export or import duties applied to goods subject to the relevant legislation in force. Customs liabilities means the obligation of the debtor to pay the customs duties.
Furthermore, in accordance with article 9 and 10 of the Turkish Custom Code, export or import duties contain:
firstly, "customs duties" payable on the exportation or importation of goods and other duties and charges having an equivalent effect,
secondly, "duties and other charges" payable on exportation or importation that are introduced under the agricultural policy or under specific arrangements applicable to some products obtained by the processing of agricultural products.
What kind of criterias are effective for customs taxation?
It is critical to bear in mind that only export and import customs procedures among others are subject to taxation in Turkey. The main basis for customs taxation is Article 15. This article provides that 'customs duties legally owed shall be based on the customs tariff, which is in force on the date that the customs debt has been initiated'. Hence "the customs tariff" in force regulates all fundamental conditions for customs taxation.
Who is the customs debtor?
In general, "debtor" means any person who is liable for the fulfillment of a customs debt. In this context, customs debtors must carry out genuinely all taxation actions and duties on time. Otherwise they may face strict tax penalties by competent national authorities.
To sum up, the amount of customs duties and taxes imposed on imports and exports of goods vary from country to country. This short guide has displayed that customs debtors should learn and digest all their duties arising from customs procedures. However, the Turkish legal framework is quite hard and provisions are very diversified. It is quite difficult not to make a mistake on the amount, timing and kind of taxation without a full-fledged legal consultation. In the absence of legal guidance, exporters and importers may face very heavy fines or penalties. This may also cause additional unexpected costs due delivery delays.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.