The rapid development of trade worldwide offers new opportunities for many businesses. Especially for those seeking to expand into foreign markets, the globalization process not only creates competitive advantages but also requires careful examination of the legal procedures they will encounter. In this context, customs duty is an important element that businesses need to consider when engaging in international trade. Customs duty refers to the financial obligations applied during import and export transactions and can influence business costs, shaping strategic decisions. Changes in customs duty can affect the dynamic nature of trade, directly impacting the ability of businesses to compete in foreign markets. Therefore, understanding and managing customs duty is critical for every business in the process of entering international markets. By fulfilling these legal requirements, businesses can take more solid steps in the global trade arena and aim for sustainable growth.
What is Customs Duty?
Customs duty is an important category of tax applied between trading countries. This tax is collected from goods entering and leaving a country, helping to maintain the economic balance of nations. Customs duty serves as an economic strategy to protect local producers and regulate imports. Countries aim to generate positive effects on their economies by collecting these taxes.
Customs duty is collected by the country from which the product or service originates. This process is extremely important for the regulation of international trade. Countries strengthen their budgets and aim to reduce trade deficits through these taxes. This ensures the stability of the national economy. Customs duty also plays a significant role as a component of trade policies and in the relations between countries.
How is Customs Duty Calculated?
In calculating customs duty, the first step is to determine the value of the product. In this case, the actual value of the product is set at 200,000 USD. However, for accurate calculation of customs duty, transportation and insurance costs of the product should also be taken into account. Therefore, transportation and insurance costs are added to calculate the total value.
In this example, the Freight Cost is determined as 30,000 USD and the Insurance Cost as 50,000 USD. Thus, the total customs value, the Cıd Price, is calculated as follows: 200,000 USD + 30,000 USD + 50,000 USD = 280,000 USD. The customs duty rate is applied to this total value.
For example, when a 30% customs duty rate is calculated, the Customs Duty = 280,000 USD x 30% = 84,000 USD. Therefore, a tax of 84,000 USD must be paid for international trade transactions.
Where is Customs Duty Paid?
There are specific legal procedures to follow for customs duty payments. First, it is helpful to learn your declaration number via the Internet Tax Office. This number is very important for the proper execution of customs duty procedures. After obtaining the declaration number, there are various methods to complete the payment process.
You can pay the customs duty through the Customs Accountant's Office or commercial banks. Among these methods, there are various options to perform your transactions more quickly and easily. Additionally, some public banks such as Ziraat Bank and VakıfBank are authorized to collect taxes. These banks are reliable alternatives for making your customs duty payments.
How is Customs Duty Paid?
Customs duty payments are based on the letters numbered 73421605-849.04 from the General Directorate of Customs and are valid from 01/06/2020 onwards. These transactions are carried out through certain public banks. You can make your payments via Ziraat Bank, Ziraat Participation Bank, Vakıfbank, Vakıf Participation Bank, Halkbank, and Emlak Participation Bank.
When paying customs duty, various payment methods are available. These include credit card, debit card, or cash. After completing your payment, do not forget to obtain a receipt or proof of payment that confirms your transaction. This document can serve as evidence if needed in the future.
Payments of customs duty are extremely critical for products imported from abroad, and properly executing these transactions helps fulfill your legal responsibilities. Therefore, you can choose one of the specified public banks to complete your transactions quickly and securely.
What is Customs Duty Exemption?
Customs duty exemption is a type of exception applied to certain products based on Article 167 of Law No. 4458. This exemption allows goods to be brought into the country without paying customs duty in some cases. For example, items brought into the country through inheritance are covered by this exemption. Additionally, motor and non-motor vehicles that are less than 3 years old at the time of purchase are also exempt from customs duty. This provides a significant advantage for the entry of new vehicles into the country.
Items acquired during travel are also covered by exemption; goods valued at no more than 430 euros can be brought into the country without paying customs duty. Furthermore, tools and materials used for education, culture, and science purposes benefit from exemption advantages. Lastly, second-hand belongings of individuals migrating to Turkey are also exempt from customs duty. These exemptions provide important conveniences for Turkish citizens living abroad as well as for those newly settling in the country.
Customs Duty Refund
The customs duty refunds, which enable the reimbursement of customs duties on products imported significantly into Turkey, offer considerable financial advantages to importers and manufacturers. This application helps companies reduce costs and increase competitiveness. The most important point for companies during the application process is to ensure that all necessary documents and information are provided completely.
Customs duty refund requests are carefully examined and approved by the Ministry of Customs and Trade. During the review process, it is extremely important to submit applications completely and accurately. Any deficiency or error may lead to rejection of the application. Therefore, businesses should carefully prepare the required documents and act in accordance with official procedures during the application process.
Who Can Benefit from Customs Duty Exemption?
The importation of products covered by exemption is valid for individuals and organizations that meet certain conditions. This exemption is generally granted to institutions serving public interest and performing tasks assigned by the state. Within this framework, some official institutions benefiting from the exemption include; the General Staff, Ministry of National Defense, Force Commands, Defense Industry Presidency, Gendarmerie General Command, and Coast Guard Command.
These organizations do not pay the specified tax, especially for expenses related to equipment and software. The purpose of this practice is to enhance public security and support the defense industry. Therefore, such exemptions provide significant financial advantages for the effective operation of these organizations and the procurement of necessary equipment.
