Customs settlement (uzlaşma) is a procedure in which the obligor, in respect of supplementary assessments and administrative fines issued by the customs administration, negotiates with the administration before a settlement commission to finalise the amount of duty and penalty. Under Article 244 of Law No. 4458, the application is made within 15 days of notification; the signed settlement report is final and cannot be challenged in court.
Which claims does settlement cover?
Article 244 of the Customs Law limits settlement to three types of claim:
- Customs duties notified because of differences between the declaration and the findings of the customs administration (for example, additional duty arising after a correction of the customs value or the GTİP (Turkish HS/tariff code))
- Duties relating to differences reported by the declarant itself before the administration detects them
- Administrative fines imposed under the Customs Law and other related laws
If the act is connected with offences under Anti-Smuggling Law No. 5607, settlement is not available. The types of penalty that may be involved are explained in the entry customs administrative fines.
Settlement commissions
The details are governed by the Customs Settlement Regulation (Gümrük Uzlaşma Yönetmeliği, Official Gazette of 27.08.2011, No. 28038). Applications are assessed by two types of commission: the Settlement Commissions of the Regional Directorates of Customs and Foreign Trade and the Central Settlement Commissions. Files up to the amount threshold set in the regulation are handled by the regional commissions, and those above it by the central commissions. Because the threshold has changed over time, the current text should be checked before applying. The commissions' proceedings are confidential.
Applying step by step
- Record the notification date: The 15-day period starts with the notification of the supplementary assessment or penalty decision.
- Apply: The request is made via the Ministry's corporate website using a BİLGE password; without a password, the form annexed to the regulation can be used.
- Procedural review: The secretariat checks competence, the deadline and the amount; a short additional period may be granted to remedy correctable deficiencies.
- Invitation: The obligor is notified of the settlement date at least five days in advance.
- Meeting: The obligor may bring their customs broker to explain their views; no more than three persons may attend the meeting.
- Report and payment: If settlement is reached, the report is signed; the agreed amount is paid within one month of notification of the report.
Settlement or objection?
| Criterion | Settlement (Art. 244) | Objection (Art. 242) |
|---|---|---|
| Deadline | 15 days from notification | 15 days from notification |
| Authority | Settlement commission | The higher authority, or the same authority if there is none |
| Outcome | The report is final; no court action possible | A rejection can be challenged before the administrative courts |
| Effect on deadlines | Suspends the deadlines for objection and court action | The administration decides within 30 days |
If no settlement is reached, the suspended period resumes from where it stopped; if fewer than five days remain, it is extended to five days. Settlement cannot be requested again for the same claim. A settlement application can also be made for claims that have been objected to but not yet decided.
When does settlement make sense?
Settlement is most useful in files where the administration's finding is not entirely wrong but the amount or the penalty seems excessive. For example, if an importer has not added to the customs value a licence fee that should have been included, additional duty is unavoidable; the discussion then focuses on the rate and scope of the penalty. On the other hand, if there is strong evidence that the administration is wrong on a technical issue such as tariff classification, an objection followed by court action may be more appropriate, because once the settlement report has been signed the same issue cannot be litigated. Obtaining binding tariff information is also an option to prevent similar findings from recurring.
Points to note
- Late payment interest is applied to the agreed duties from the date the liability arose until the date the report is signed.
- The early payment reduction under the Law on Misdemeanours (Kabahatler Kanunu) cannot be used for agreed penalties.
- Signing the report with reservations means that settlement has not been achieved.
- The choice between settlement and objection should be made with expert advice, depending on the legal strength of the file; regulatory consultancy is useful at this stage.