GÜMRÜKLER GENEL MÜDÜRLÜĞÜ

Customs Value

Question: What is “customs value of goods”?

Answer: “The customs value of goods” is the value determined laid down by the framework of the Third Division of Second Part of the Customs Law No. 4458 and Third Section of Second Book of the Customs Regulations for the purposes of applying the Customs Tariff and non-tariff measures related to trade of goods. (However, the provisions of this sections, does not affect the specific provisions regarding the determination of the customs value of goods released for free circulation after subjected to another customs-approved treatment or use.)
 
The statement of the customs value of imported goods indicates the value of goods that will be the basis for the calculation of customs duties according to ad valorem tax system. 

Question: How to determine the customs value of the goods?

Answer: The customs value of goods is designated and determined by respectively application of methods of valuation for duty purposes specified Article 45 to 50 of the Customs Regulations.
 
These methods are; the transaction value method, the transaction value of identical goods, the transaction value of similar goods method, the unit price method, the computed value method and the last method (the fall-back method).
 
The order of the use of the methods are, first to test the transaction value method, and in the presence of a condition that prevents the use of this method then test other methods accordingly and apply the latest method after testing the first five methods. İf a written request of the declarant is endorsed by the customs authorities, application order of the computed value method and the unit price method shall be reversed. 

Question: What are the elements that are included in the price actually paid or payable in the transaction value method?

Answer: According to provisions of Article 45 of Customs Regulation, in determining the customs value with the transaction value method, the following additions are included in the price actually paid or payable for the imported goods.
 
a) The following, to the extent that they are incurred by the buyer but are not included in the price actually paid or payable for the goods:
 
1) Commissions and brokerage, except buying commissions;
 
2) The cost of containers which are treated as being one for customs purposes with the goods in question;
 
3) The cost of packing whether for labour or materials;
 
b) The value, apportioned as appropriate, of the following goods and services where supplied directly or indirectly by the buyer free of charge or at reduced cost for use in connection with the production and sale for export of the imported goods, to the extent that such value has not been included in the price actually paid or payable:
 
1) Materials, components, parts and similar items incorporated in the imported goods;
 
2) Tools, dies, moulds and similar items used in the production of the imported goods;
 
3) Materials consumed in the production of the imported goods;
 
4) Engineering, development, artwork, design work, plans and sketches undertaken elsewhere than in the country of importation and necessary for the production of the imported goods;
 
c) Royalties and licence fees related to the goods being valued that the buyer must pay, either directly or indirectly, as a condition of sale of the goods being valued, to the extent that such royalties and fees are not included in the price actually paid or payable;
 
d) The value of any part of the proceeds of any subsequent resale, disposal or use of the imported goods that accrues directly or indirectly to the seller.
 
e) The costs of transport and insurance for the imported goods, up to the place where goods are brought into the Turkish enterance port or place. (the port or place of importation means; for goods imported via sea route it is the seaport where good are unloaded in Turkey, for goods imported via land or air it is the ports of entry and international airports.
 
Additions to the price actually paid or payable pursuant to Article 27 of Customs Law No. 4458 shall be made only on the basis of objective and quantifiable data.
 
No additions shall be made to the price actually paid or payable in determining the customs value except as provided in the Article 27 of Customs Law No. 4458.
 
The charges for the right to reproduce the imported goods in Turkey shall not be added to the price actually paid or payable for the imported goods in determining the customs value. Payments made by the buyer for the right to distribute or resell the imported goods shall not be added to the price actually paid or payable for the imported goods if such payments are not a condition of the sale for export to the country of importation of the imported goods. 

Question: What are the elements that shall not be included in the price actually paid or payable in the transaction value method?

Answer: Provided that they are shown separately from the price actually paid or payable, the following shall not be included in the customs value:
 
a) Charges for the transport of goods and insurance after their arrival at the place of introduction into the Customs Territory of the Republic of Turkey and into the customs territories of the customs union to which Turkey is a party by agreements;
 
b) Charges for construction, erection, assembly, maintenance or technical assistance, undertaken after the entry into the customs territory of the Union of the imported goods such as industrial plants, machinery or equipment;
 
c) Charges for interest incurred by the buyer under a financing arrangement relating to the purchase of imported goods
 
d) Buying commissions,
 
e) Import duties payable in Turkey due to the importation or sale of goods
 
In this article’s paragraph (c), irrespective of whether the finance is provided by the seller or another person, provided that the financing arrangement has been made in writing and, where required, the buyer can demonstrate that the following conditions are fulfilled: 

  • Such goods are actually sold at the price declared as the price actually paid or payable, 
  • The claimed rate of interest does not exceed the level for such transactions prevailing in the country where, and at the time when, the finance was provided. 
Question: What are the penalties for failure to comply with the relevant legislation related to the determination of the customs value of the goods?

Answer: According to Customs Law article 234/1(b), apart from the customs duties regarding the deficit, a threefold of these duties shall be charged as fine in the case that the examinations and controls have demonstrated that the declared value of the goods subject to ad-valorem duties is deficient when compared with the value determined under of Articles 23 to 31.
 
In case of a difference less than 5% and in the deficient value declarations incurred from a formal account error, the customs duty regarding these differences as well as a fine at an amount of one fold of this duty, shall be charged.
 
The amount of the fine charged hereunder, shall not be less than the amount referred to in article 241.
 
Anti-Smuggling Law No. 5607 provisions are reserved.