Amendments Made to the Implementation of Customs Law No. 4458

Significant amendments were introduced to the implementation of certain provisions of the Turkish Customs Law No. 4458 through a Presidential Decree published in the Official Gazette on August 6, 2024 (Issue No. 32624). These amendments mark a substantial revision of Turkey’s customs regime, and the new regulations are set to take effect on August 21, 2024.

Increase in Tax Rates

One of the most noteworthy aspects of the amendments introduced by the Presidential Decree is the increase in tax rates applied to goods imported from abroad. The fixed tax rate for goods imported from European Union (EU) member states has been raised from 20% to 30%, while the rate for goods imported from non-EU countries has been increased from 30% to 60%. These tax increases are expected to significantly raise the costs of trade with EU countries, especially within the framework of the customs union agreements.

Additionally, it was specified that certain goods listed under the Special Consumption Tax Law No. 4760 will be subject to an additional 20% tax.

Reduction of Declaration Limits

Another significant amendment is the reduction of the threshold for duty-free processing of goods imported via postal or express cargo services. The previous threshold of 150 Euros has been reduced to 30 Euros. All purchases exceeding 30 Euros will now require full declaration instead of the simplified declaration method.

Furthermore, the new regulation mandates that for express cargo shipments exceeding 30 Euros, companies must be authorized, and the necessary documents must be provided to carry out customs procedures.

Legal Implications of the Amendments

These amendments will have wide-ranging effects on Turkey’s international trade and customs legislation.

In particular, large-scale importers will need to review their internal processes and implement necessary adjustments to comply with the new tax rates and declaration limits.

Conclusion and Evaluation

The amendments made to Customs Law No. 4458 signify a fundamental transformation in Turkey’s customs policies. In light of these new regulations, it is of utmost importance that all relevant parties swiftly adapt to these changes, take necessary precautions, and restructure their commercial processes accordingly.