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Tax alert no. 20 - Up to 30 % - 50 % additional duties upon import in Turkey

In this issue:

   European Union exports of footwear, furniture, electrical products, bicycles may be subject to 30 % - 50 % additional duties upon import in Turkey unless they are followed by a valid proof of EU origin, besides the A.TR. movement certificate 

Summary

On 24 May 2019, Turkey has amended its customs regulations related to origin proving for certain products which are subject to additional customs duties. 

As a result, exports of footwear, furniture, electrical products, bicycles to Turkey from the European Union may be subject to additional customs duties upon importation in Turkey unless they are followed by a valid proof of EU origin, besides the A.TR. movement certificate. 

 

Detailed Discussion

In Turkey, additional customs duties (e.g. 30% to 50%) are applied upon imports of certain product categories depending on their country of origin.  For example, footwear, furniture, electrical products, bicycles which are not of EU or EFTA countries origin are subject to such additional duties.

Goods coming to Turkey via the EU followed by an A.TR movement certificate are also subject to such additional duties in lack of an EU origin certificate proving that they are indeed EU goods.

Starting with 24th of May 2019, the exporter’s declaration is no longer accepted by Turkish customs authorities for granting exemption from such additional customs duties.  The use of supplier’s declaration is now limited.

New provisions state that a Certificate of Origin needs to be submitted along with the import declaration at the time of releasing the goods for free circulation in Turkey.

 

How does the above influence your activity?

If you export goods from EU to Turkey, they may be subject to additional customs duties upon importation in this territory (e.g. 30% up to 50%).  To continue to benefit from the additional customs duty exemption, amongst the A.TR movement certificate, you need to calculate and to issue a Certificate of Origin proving that the goods are of EU or EFTA origin. 

We recommend you to further analyze the implications on the above since calculation of origin of goods is a complex and time-consuming process.

 

Prepared by:
Mihai Petre, Director, Tax
Jean-marc Cambien, Partner, Tax

 

For additional information, please contact:

Alex Milcev, Partner – Head of Tax&Legal

 

Ernst & Young SRL

Bucharest Tower Center Building,

22nd Floor, 15-17 Ion Mihalache Blvd.,

Sector 1, 011171, Bucharest, Romania

Tel: (40-21) 402 4000, Fax: (40-21) 310 7124

Email: office@ro.ey.com

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