Goods subject to liquidation are goods that, although presented to customs, have not been assigned a customs-approved treatment or use within the legal time limit, whose formalities have not been completed, or that have been abandoned to customs. Under Articles 177–180 of Customs Law No. 4458, such goods are disposed of by sale, allocation, destruction or by special means; up to a certain stage the owner can recover the goods by paying a charge.
In which cases do goods become subject to liquidation?
Article 177 of the Customs Law lists the goods that are to be liquidated. The cases of most concern to importers are:
- Goods in temporary storage that arrived under a summary declaration and for which formalities to assign a customs procedure were not started within the legal time limit
- Goods whose declaration has been registered but which could not be examined, whose documents were not submitted or whose duties were not paid for reasons attributable to the declarant
- Goods in a customs warehouse whose formalities were not completed within thirty days of registration of the declaration
- Goods abandoned or deemed abandoned to customs
- Goods found in excess during a warehouse stock count
- Goods that perish quickly or are expensive and burdensome to store, regardless of the waiting period
Key time limits
| Situation | Time limit | Legal basis |
|---|---|---|
| Completion of formalities for goods arriving by sea | 45 days from the summary declaration | Law No. 4458, Art. 46 |
| Completion of formalities for goods arriving by other means | 20 days from the summary declaration | Art. 46 |
| Formalities after the declaration for goods in a customs warehouse | 30 days from registration | Art. 70 |
| Storage in the passenger baggage store | 3 months | Art. 48 |
The Ministry may set shorter periods where circumstances require, or extend them provided the extension does not exceed actual needs. The rules on how long goods may stay under the customs warehousing procedure are explained separately in the entry storage period in a customs warehouse.
How does the liquidation process work?
- Determination: When the time limit expires, the customs administration records the situation in a report; if there is a declaration, the goods are examined.
- Transfer: The determination and assessment documents are sent to the liquidation administration within thirty days; the liquidation administration must take over the goods within thirty days.
- Method of liquidation is chosen: Sale by tender, sale for re-export, retail sale, allocation to public institutions and certain foundations and associations, destruction, or special means.
- Proceeds are distributed: From the sale proceeds, service receivables and expenses, customs duties, sales expenses and fines are deducted in that order.
- The remainder is held in deposit: If the owner does not collect it within one year, the amount is recorded as revenue of the Ministry's revolving fund.
Can the owner recover the goods?
Article 179 of the Law provides a way to recover the goods. Until the tender notice is published or a retail sale decision is taken, an application can be made to the customs administration to place the goods under a customs procedure or to re-export them. The cost is any fines, storage and handling expenses, plus 1 per cent of the CIF value of the goods. If the right is used for a second time, the rate rises to 3 per cent. For applications made after the notice has been published but before the sale takes place, the rate is 10 per cent. In some cases, such as goods abandoned to customs, this route is not available.
Who is responsible, and who should keep track?
The time limits are written in the law, and keeping track of them falls to the person concerned with the goods, i.e. the importer. In practice the customs broker does this on the importer's behalf, but the consequences of delays in documents and payments remain with the importer. The carrier and the temporary storage operator also know that the goods are waiting on site; it is normal for them to warn the consignee as charges accumulate. Liquidation itself is carried out by the liquidation units of the Ministry of Trade (Ticaret Bakanlığı).
Common mistakes
- Counting the time limit from the arrival of the goods rather than from the date of the summary declaration
- Delaying registration of the declaration while waiting for a missing conformity document
- Registering the declaration for release from a customs warehouse and then waiting without paying the duties
- Not taking into account that accumulated storage and demurrage charges are added to the recovery cost
To keep track of time limits from the outset, preparing documents before the goods arrive is the most effective measure in import customs clearance.