Customs duty calculation for 2020 uses multiple parameters. The calculation is based on the Customs Duty Base (taxable value). To determine that base, the CIF value of the goods is taken as the reference. The customs duty collected is calculated by applying the rate listed in the Customs Tariff Statistical Position (CTSP) for the goods to the Customs Duty Base.
For example, imagine you import a table from China valued at 10,000 USD. In this example assume an exchange rate of 1 USD = 4 TRY and a customs duty rate of 12% for that product. You agreed with the seller on FOB delivery terms. For the calculation you first need the product’s Customs Tariff Statistical Position and the applicable customs duty rate. We have already assumed 1 USD = 4 TRY and a 12% customs duty rate.
Next you must determine the CIF value. To calculate CIF, you need freight and insurance costs. If there is no freight invoice and no insurance policy, the rule is to add 10% for freight and 3% for insurance to the FOB value to estimate CIF. Under that rule the calculation for this product is as follows:
- FOB: 10,000 USD
- Freight 10%: 1,000 USD
- Insurance 3%: 300 USD
With these additions the CIF value equals 11,300 USD. The next step is to calculate the Customs Duty Base in local currency. The Customs Duty Base equals the CIF value converted into TRY. Based on the assumptions above, the conversion is handled as follows:
- 11,300 USD x 4 TRY = 45,200 TRY (CIF in TRY)
Using this CIF/TRY figure and the 12% customs duty rate for the table, the customs duty is calculated like this:
- 45,200 x 12% = 5,424 TRY
After this calculation, the customs duty for importing the table from China valued at 10,000 USD is 5,424 TRY.
Is VAT Included in Customs Duty?
Whether VAT applies to customs duties depends on certain conditions specified in Article 167 of Customs Law No. 4458 and Article 52 of the VAT Law. Under these provisions, when a single and fixed tariff already includes VAT and the shipment value does not exceed 1,500 euros, postal or cargo imports charged under the single and fixed tariff are not also subject to separate VAT. In other words, when the single and fixed tax is applied according to the rates in those articles and the shipment value is under 1,500 euros, no additional VAT is levied on the imported goods.
When Are Imported Goods Exempt from Customs Duty?
Exemption from customs duty can apply to books imported for personal use, but not all books are automatically exempt. Specific conditions must be met for books and printed matter to be duty-free. The exemption depends on the customs value per shipment. Books and printed materials imported for personal use by mail or cargo are exempt from customs duty provided the customs value per shipment does not exceed 150 euros.
There is also an allowance for gifts brought by travelers returning from abroad or visitors from abroad. The total customs value of items that can be passed through customs during travel must not exceed 430 euros.
What Is the Fee for Presentation to Customs?
The presentation fee is the charge levied when a customs officer inspects a parcel held in customs—sent by post or courier—due to suspicion about the contents. If the package is opened and inspected, this fee becomes payable.
Which Products Are Subject to Special Consumption Tax?
Products subject to Special Consumption Tax (SCT) are determined by law. The basis for SCT is Law No. 4760 on Special Consumption Tax. To determine whether an imported item is subject to SCT, consult the list attached to Law No. 4760 (List IV). If a postal or cargo parcel contains goods listed in List IV, an SCT—in addition to customs duty—may apply (for example at a 20% rate for certain goods).
How Much Is Customs Duty?
Customs duty rates vary depending on the shipment value and the country of origin. Shipments whose value per shipment does not exceed 1,500 euros are treated differently in some respects. Books and printed matter imported for personal use may be exempt under certain conditions. For other goods, rates depend on the country of origin: goods arriving directly from European Union member countries are generally subject to an 18% customs duty rate, while goods from non-EU countries are typically taxed at 20%. Books and printed matter imported for personal use with a value not exceeding 150 euros are charged a flat 8% customs duty regardless of origin.
Which Products Are Subject to Additional Customs Duty?
Additional customs duties range between 5% and 50%, applied to protect domestic producers and employment. Certain iron and steel products—such as slabs, billets, alloyed products, stainless sheet, profiles, and flat rolled products—have seen an increase of 5 percentage points under this measure. This temporary additional duty was in effect through July 2020.
Cases with a 2-point increase in customs duty include imports by facilities producing cold-rolled steel from hot-rolled sheet, welded pipes produced from hot-rolled sheet, and imports by white goods manufacturers. Beyond these manufacturing categories, additional customs duties have been applied to a range of other products listed below:
- Video game consoles,
- Golf clubs,
- Carnival merchandise,
- Rubber threads,
- Plastic sheets,
- Plastic plates,
- Adhesives,
- Iron screws,
- Steel screws,
- Plastic buttons,
- Metal buttons,
- Certain welding wires,
- Paper cutting machines,
- Uninterruptible power supplies,
- Relays,
- Speakers,
- Multimeters,
- Watches,
- Stopwatches,
- Lighting fixtures,
- Lighting fixture components,
- Lighting fixture parts,
- Hydraulic presses,
- Holiday goods,
- Festival items,
- Circus equipment,
- Game consoles,
- Snap fasteners,
- Snap fastener components,
- Outdoor games,
- Outdoor game equipment,
- Golf clubs.
What Do the Terms Related to Customs Duty Mean?
Definitions of terms used with customs duty are as follows:
- Additional Customs Duty: A supplementary tax applied on top of the regular customs duty for certain imported goods.
- Additional Financial Obligation: A levy imposed under safeguard measures to protect the domestic economy, often implemented as countervailing duties.
- Anti-Dumping Duty: Also called anti-dumping tax, this is applied to imports to counteract unfair competition when foreign exporters sell goods below normal value, harming domestic producers.