Consignment selling is a sales method in which goods are placed with an intermediary or in the buyer's warehouse while ownership remains with the seller, and are invoiced only as they are sold or used. The consignment warehouse is where this stock is held. In consignment exports from Türkiye, the goods must be converted into a definitive sale within one year of the export date.
Why is consignment preferred?
Consignment is a model in which the seller makes market entry easier by bearing the inventory risk. The buyer or intermediary does not pay until the goods have been sold; the seller, in turn, keeps its product close to the customer. Typical uses are testing a new market, selling products whose price will be set by the market, keeping spare parts or consumables close to the customer's production line and holding stock on foreign e-commerce marketplaces.
Two different models
| Feature | Consignment export / sale | Consignment stock |
|---|---|---|
| Where are the goods? | In the warehouse of the intermediary, commission agent or marketplace | On the buyer's own site or in a nearby warehouse |
| When is the invoice issued? | When the goods are sold to the end user | When the buyer withdraws the goods from stock and uses them |
| Typical user | Companies selling consumer goods and exporting via e-commerce | Automotive, machinery and manufacturing suppliers |
| Key document | Sales report and final invoice | Stock withdrawal record and periodic reconciliation |
Rules for consignment exports from Türkiye
The Export Regulation (İhracat Yönetmeliği) was updated by an amendment published in the Official Gazette (Resmî Gazete) of 6 May 2025. The key provisions:
- Consignment exports also cover the shipment of goods to foreign marketplaces, e-commerce sites and other e-commerce platforms in the context of e-exports.
- A definitive sale is the sale of the goods to the end user. Within 120 days of the definitive sale, the exporter notifies the exporters' association and the intermediary bank, together with the invoice and documents.
- The goods must be converted into a definitive sale within one year of the export date. On application for justified and compelling reasons, the general secretariat of the exporters' associations that granted the permission may extend this period by a further two years.
- For consignment exports under the simplified procedure, i.e. with an ETGB, the period is not extended.
- Goods that cannot be sold in time must be brought back into the country in accordance with customs legislation.
The process step by step
- Contract: Ownership, commission, reporting frequency, insurance and return terms are set out with the intermediary or marketplace.
- Application and declaration: The application for consignment export is made to the general secretariat of the exporters' associations; the approved declaration is submitted to the customs office within 30 days. Declaration formalities are handled as part of export customs clearance.
- Shipment and storage: The goods go to the intermediary's warehouse, a bonded warehouse or the marketplace's fulfilment centre. If they need to be held without paying duties, the customs warehousing procedure in the destination country is considered.
- Sales report: The intermediary periodically reports quantities sold, remaining and damaged.
- Final invoice and notification: An invoice is issued for the quantity sold and submitted to the association and the bank within the 120-day notification period.
- Close-out: Unsold stock is brought back before the period expires or placed under another customs procedure.
Risk, insurance and tax
As ownership remains with the exporter until the sale, the risk of fire, theft or deterioration in the warehouse also lies, as a rule, with the exporter. The insurance of the intermediary's warehouse may not cover the exporter's goods; separate cover for the stock or a clear liability clause in the warehouse contract is therefore needed. The topic is discussed in the entry on liability for goods in a warehouse. To ensure the goods can be separated out in the event of the intermediary's insolvency, stock records and labelling must be kept in order. On the tax side, the export exemption and the period to which the VAT refund is assigned are linked to the definitive sale and should therefore be planned together with a certified public accountant; the general framework is in the entry on VAT refunds on exports.
Common mistakes
- Not obtaining sales reports regularly and noticing the one-year deadline only in the last months.
- Missing the 120-day notification deadline.
- Not writing the reconciliation method for losses and shrinkage with the intermediary into the contract.