Customs duty is found by multiplying the customs value of the imported goods by the rate in the Turkish Customs Tariff Schedule (Türk Gümrük Tarife Cetveli). The value is usually the CIF value, including freight and insurance. Additional customs duty and special consumption tax (ÖTV) are added where applicable; VAT is then charged on the total of the value, these taxes and the costs incurred up to the registration date of the declaration. A proof of origin and a free trade agreement (FTA) can reduce the rate to zero.
Three elements determine the calculation: value, tariff, origin
The amount of customs duty depends on the answers to three questions. First, what is the customs value of the goods? Freight, insurance and certain additional payments up to the point of entry are added to the invoice price; details are explained in calculating customs value. Second, which tariff heading do the goods fall under? The rate depends on the 12-digit GTİP code (Turkish HS/tariff code). Third, where were the goods produced? Origin can lead to different rates for the same product.
Under Customs Law No. 4458 (4458 sayılı Gümrük Kanunu), duties are calculated according to the tariff in force on the date the customs debt is incurred. Under the release for free circulation procedure, this date is the registration date of the declaration. A value expressed in foreign currency is also converted into Turkish lira on the basis of this date.
Which duties and charges are paid on import?
| Item | Basis | Note |
|---|---|---|
| Customs duty | Customs value (ad valorem) or quantity such as kg or units (specific) | Rate from the tariff schedule, varies by origin |
| Additional customs duty | Customs value | For goods in the lists annexed to the Import Regime Decree (İthalat Rejimi Kararı), from certain origins |
| Special consumption tax (ÖTV) | Depends on the list and product | Fuel, cars, alcohol, tobacco, certain durable goods |
| Value added tax | Value + duties paid on import + costs up to registration | VAT Law No. 3065, Art. 21; standard rate 20% |
| Stamp duty | Fixed amount per declaration | Amount updated every year |
| KKDF (Resource Utilisation Support Fund) | Depends on payment method | Applies to deferred-payment, acceptance-credit and cash-against-goods imports |
For some products, special levies such as banderole fees are added to these. Additional customs duty is often the item that is overlooked and changes the cost the most.
How is the calculation done step by step?
- The GTİP is determined and the customs duty, additional customs duty and VAT rates are read from the tariff schedule.
- The proof of origin is checked; if a preferential rate is to be applied, the document is attached to the declaration.
- The customs value is calculated: invoice price + freight and insurance up to the Turkish customs border + other elements to be added to the value.
- Customs duty and additional customs duty are calculated separately on the value.
- The VAT base is built up and the VAT rate applied.
- Stamp duty and any other items are added to arrive at the total payable.
Worked example
The rates are for illustration only. For a machine with an FOB price of €40,000, freight of €3,000 and insurance of €200, the value is €43,200. If customs duty is 4%, it comes to €1,728; if additional customs duty is 10%, €4,320. Adding €480 of handling and storage costs paid at the port up to registration, the VAT base is €49,728; 20% VAT is €9,945.60. Excluding stamp duty, the total burden reaches €15,993.60. If the same machine were of EU origin and arrived with an A.TR, customs duty and additional customs duty would be zero and only VAT would be paid.
How do origin and free trade agreements change the result?
Industrial products covered by the Türkiye–EU Customs Union enter free of customs duty with an A.TR movement certificate. For goods from FTA countries, the reduced rate under the agreement applies if a EUR.1 or an invoice declaration is presented. Without the document, the third-country rate and any additional customs duty apply. VAT is independent of origin and is charged in every case unless an exemption applies.
Who declares and who pays?
The calculation is made by the declarant, or by a customs broker on its behalf, and entered in the declaration. The customs administration checks the declaration, with document and physical inspection if necessary. Goods are not released for free circulation until the duties have been paid or secured by a guarantee. An importer registered for VAT can deduct the import VAT it has paid under the general rules.
Common mistakes
- Not adding freight and insurance to the value for goods arriving on an FOB invoice.
- Calculating costs without checking the additional customs duty list.
- Excluding port and storage costs from the VAT base.
- Not planning the declaration accordingly when the proof of origin will arrive later.
How does Voltim Global support this?
Before import customs clearance, the GTİP, proof of origin and duty items are set out in a single table, so the importer sees the amount payable before the goods reach the port. Cases where procedures such as inward processing are suitable are assessed separately under tax and exemption consultancy.