Turkey is a dynamic and strategically positioned country that bridges the continents of Europe and Asia. It serves as a crucial trade hub between the East and West, and its customs tariff system plays a vital role in regulating imports, protecting domestic industries, and generating revenue. As a member of various international organizations, including the World Trade Organization (WTO), Turkey implements a sophisticated tariff structure that includes custom duties, Value Added Tax (VAT), and special import duties on various goods.
Turkey’s tariff rates are determined by the HS Code System (Harmonized System), which categorizes goods based on international standards. The rates for specific products can vary greatly depending on the classification of goods, their origin, and the country’s trade agreements with foreign partners. In addition to general tariff duties, Turkey applies special duties on certain products, such as luxury items, alcohol, and vehicles, as well as preferential treatment for goods from countries within its trade agreements, such as the EU Customs Union, Free Trade Agreements (FTAs), and the World Trade Organization (WTO).
Overview of Turkey’s Customs and Tariff System
Turkey’s customs and tariff system is designed to facilitate international trade while protecting its domestic markets. The Republic of Turkey maintains a relatively open market economy, but it also applies tariffs to protect sectors that are deemed essential or vulnerable. The system includes various forms of taxation, such as:
- Customs Duties: These taxes are imposed on imported goods, based on their HS Code classification.
- Value Added Tax (VAT): A VAT of 18% is generally applied to imported goods.
- Special Import Duties: Certain products such as luxury goods, alcohol, and motor vehicles may be subject to additional duties.
- Excise Taxes: Products like alcohol, tobacco, and energy products are subject to excise duties in addition to standard import tariffs.
The Turkish Customs Directorate is responsible for overseeing and enforcing customs regulations, ensuring that imports are compliant with Turkish laws and international trade agreements. Importers are required to declare the value of goods, including shipping and insurance costs, and pay the relevant tariffs and taxes at the port of entry.
Key Features of Turkey’s Customs and Tariff System
- Tariff Rates: Ranges from 0% for certain goods (e.g., medical supplies) to 135% for specific luxury products or motor vehicles.
- VAT: A standard VAT rate of 18% is applied on most imported goods.
- Special Duties: Additional duties may apply to certain products, particularly luxury goods, alcohol, tobacco, and vehicles.
- Trade Agreements: Turkey has several trade agreements that influence tariff rates, including the EU Customs Union, WTO membership, and bilateral Free Trade Agreements (FTAs).
Turkey’s customs policy also supports export-oriented growth by providing certain exemptions, such as reduced tariffs or tax breaks for exporters of raw materials or components used in Turkish manufacturing.
Import Tariff Rates by Product Category
The Turkish tariff system divides imports into HS Code categories, with each category subject to a specific tariff rate. Below is a breakdown of common categories and their associated tariff rates.
1. Agricultural Products
Agricultural imports in Turkey include a variety of fresh produce, processed foods, and livestock products. These imports are regulated to protect Turkey’s agriculture sector and ensure food security.
Fresh Fruits and Vegetables (HS Codes 07, 08)
- Citrus Fruits (e.g., oranges, lemons): 10% to 20% duty
- Citrus fruits are subject to 10%-20% tariffs, with the rate often varying based on the origin country. Countries like Egypt, Spain, and South Africa are major exporters of citrus to Turkey.
- Tomatoes, Potatoes, and Onions: 15% duty
- Imports of common vegetables such as tomatoes and potatoes generally face a 15% tariff. These products are often sourced from neighboring countries like Greece, Egypt, and Iran.
Meat and Dairy Products (HS Codes 02, 04)
- Beef: 40% duty
- Beef is a key import, with a 40% tariff applied on imports from non-EU countries. Brazil, Argentina, and Australia are major suppliers of beef to Turkey.
- Poultry (e.g., chicken): 30% duty
- Poultry products, including chicken and turkey, are taxed at 30%. Imports come from Brazil, Thailand, and the US.
- Milk and Dairy Products: 20% duty
- Imported milk and dairy products are subject to 20% duty, with New Zealand, Australia, and EU countries being the primary exporters.
Cereals and Grains (HS Codes 10, 11)
- Wheat: 10% duty
- Wheat is an essential agricultural import to Turkey, and it faces a 10% tariff. The main suppliers are Russia, Ukraine, and Kazakhstan.
- Rice: 10% duty
- Rice imports face a 10% tariff, with Thailand and India as the largest exporters to Turkey.
2. Textiles and Apparel
Turkey has a well-developed textile industry, and its import duties on textiles help protect local manufacturers while providing access to a range of global goods.
Raw Materials for Textiles (HS Codes 52, 54)
- Cotton: 0% to 5% duty
- Cotton is a key raw material for Turkey’s textile industry, and it faces a 0%-5% tariff, depending on the form in which it is imported (e.g., raw cotton vs. spun cotton).
- Synthetic Fabrics: 10% duty
- Synthetic fabrics like polyester and nylon are taxed at 10%. These products are typically sourced from China, India, and Indonesia.
Finished Apparel (HS Codes 61, 62)
- T-Shirts and Shirts: 15% duty
- T-shirts and shirts imported from non-EU countries are taxed at 15%. China, Bangladesh, and Vietnam are major suppliers of these goods.
- Jeans: 20% duty
- Imported jeans face a 20% tariff. Turkey imports a significant volume of denim from China, Bangladesh, and Pakistan.
- Dresses and Outerwear: 25% duty
- Dresses, jackets, and outerwear are subject to a 25% duty. These products are primarily sourced from China, Turkey’s own domestic market, and European manufacturers.
3. Electronics and Electrical Equipment
Electronics and electrical products are essential imports for Turkey, especially in the consumer electronics, automotive, and telecommunications sectors.
Mobile Phones and Computers (HS Codes 85)
- Mobile Phones: 0% duty
- Mobile phones are exempt from import duties (0%). These items are sourced from countries like China, South Korea, and Vietnam.
- Laptops and Computers: 0% duty
- Laptops and computers also benefit from 0% duties, making them affordable for both individual consumers and businesses.
Home Appliances (HS Code 84)
- Refrigerators and Freezers: 10% duty
- Imported refrigerators and freezers face a 10% tariff. South Korea, China, and Germany are major suppliers.
- Air Conditioners: 10% duty
- Air conditioning units are taxed at 10%, with the primary suppliers being China, Japan, and South Korea.
4. Automobiles and Auto Parts
Automobile imports to Turkey are subject to relatively high tariffs to protect the local automotive industry, which includes well-established companies like Ford Otosan, Tofaş, and Renault Turkey.
Motor Vehicles (HS Code 87)
- Passenger Cars: 60% duty
- Passenger cars imported into Turkey are subject to a 60% tariff. The tariff is particularly high for luxury vehicles and non-European models. Major suppliers include Germany, South Korea, and Japan.
- Commercial Vehicles: 30% duty
- Trucks, vans, and buses are taxed at 30%. Imports come from Germany, Italy, and France.
Auto Parts (HS Code 87)
- Auto Parts: 5% duty
- Auto parts such as engines, brakes, and transmissions face a 5% duty. The key suppliers include Germany, China, and the US.
5. Luxury Goods and Special Products
Luxury goods and specific high-demand products, including alcohol, tobacco, and cosmetics, are subject to special tariffs and excise taxes.
Alcohol (HS Code 22)
- Wine: 30% duty + excise tax
- Wine is subject to a 30% tariff plus an additional excise tax based on alcohol content. Major suppliers of wine to Turkey include France, Italy, and Spain.
- Beer: 40% duty + excise tax
- Beer imports face a 40% tariff along with an excise tax, with Germany, Belgium, and the Netherlands being the primary exporters.
Tobacco Products (HS Code 24)
- Cigarettes: 100% duty + excise tax
- Cigarettes are highly taxed with 100% import duty plus excise taxes to discourage smoking and protect local tobacco production.
Special Import Duties and Exemptions
Trade Agreements and Preferential Tariffs
Turkey has signed several free trade agreements (FTAs) and is part of the EU Customs Union, which affect its tariff rates:
- EU Customs Union: Turkey shares a customs union with the European Union, which means that goods from EU member states are generally imported with zero duties.
- WTO Membership: As a member of the World Trade Organization (WTO), Turkey abides by international trade rules, including the most-favored-nation (MFN) principle, which ensures that Turkey applies the same tariff rate to goods from all WTO members unless specified otherwise.
- Bilateral Trade Agreements: Turkey has FTAs with several countries, including South Korea, EFTA countries, and Mexico, which allow for preferential access to Turkish markets.
Exemptions
Turkey offers duty exemptions or reduced tariffs on certain goods, including capital goods (machinery for production), raw materials for the domestic manufacturing industry, and humanitarian aid.
Country Facts: Turkey
- Formal Name: Republic of Turkey
- Capital City: Ankara
- Largest Cities:
- Istanbul
- Ankara (Capital)
- Izmir
- Per Capita Income: Approx. $9,000 USD (nominal)
- Population: Approx. 84 million
- Official Language: Turkish
- Currency: Turkish Lira (TRY)
- Location: Turkey is located at the crossroads of Europe and Asia, bordered by the Aegean Sea to the west, the Mediterranean Sea to the south, and the Black Sea to the north.
Geography
Turkey is a transcontinental country, with the majority of its landmass in Asia, while a small portion lies in Europe. The country features a diverse geography, including mountains, plains, and coastal areas. Major mountain ranges include the Taurus and Pontic Mountains, while Turkey has a Mediterranean climate in the coastal regions and a more continental climate inland.
Economy
Turkey has a mixed economy that includes modern industries and strong agricultural and tourism sectors. Key economic areas include automotive manufacturing, textiles, electronics, and construction.
Major Industries
- Automotive: Home to major car manufacturers like Ford Otosan, Tofaş, and Renault Turkey.
- Textiles and Apparel: Turkey is a major exporter of textiles and garments, especially to the EU.
- Agriculture: Major products include cotton, fruits, and tobacco.
- Tourism: Turkey is one of the world’s most visited countries, with famous tourist destinations like Istanbul, Cappadocia, and Antalya.
