Customs Valuation
"How is customs value determined for imported goods in Turkey?"
Quick Answer
In Turkey, customs valuation is governed primarily by Turkish Customs Law No. 4458 and secondary legislation, applying WTO customs valuation principles. The default method is transaction value (price actually paid or payable), adjusted by required additions (e.g., freight/insurance to the border where applicable, royalties/licence fees, assists, commissions, packing). If transaction value cannot be used, customs applies alternative methods in a prescribed order.
Customs Valuation Framework in Turkey
Customs valuation determines the taxable base for customs duties and import taxes. In practice, most disputes arise from (i) under/over-declared freight and insurance, (ii) royalties and licence fees, (iii) assists (moulds, tooling, design supplied by the buyer), (iv) related-party pricing, and (v) post-import price adjustments (rebates/credits) and whether they can be reflected in customs value.
Key Points to Remember
- Transaction value is the default method, but it must be adjusted by required additions when applicable.
- Related-party transactions may be accepted if the relationship did not influence the price (supporting evidence may be required).
- Royalties/licence fees and assists can trigger upward adjustments if they relate to the imported goods and are a condition of sale.
- Freight/insurance and packing costs may need to be included depending on the Incoterms and cost structure.
- If transaction value cannot be used, customs applies alternative methods in sequence (identical/similar goods, deductive, computed, fallback).
Practical Applications
For valuation, importers should maintain a valuation support file (contracts, price lists, payment records, royalty/licence agreements, freight/insurance invoices, and evidence of any assists). Customs may request this file during controls or post-clearance audits to verify declared customs value.
To reduce valuation risk, companies should align customs valuation with their intercompany pricing policies, document related-party pricing (benchmarking where relevant), and define how rebates/credits and year-end adjustments will be treated for customs purposes before importation.
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