Turkish Labor Law
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Overview
Overall, Turkey has a relatively free market for trade in goods and services as a result of liberalization measures introduced over the past two decades. Turkey follows basic WTO rules to regulate imports and tariff structures and has adopted the European Union (EU)’s common customs tariff for imports from third countries. Turkey signed a customs union with the EU in 1996, eliminating all duties and charges on goods imported from EU member countries, excluding services, public procurement and unprocessed agricultural products. Turkey has signed free trade agreements with various countries and extends preferential treatment for least developed countries and some developing countries.
For more information on Turkey’s import regime, visit the www.dtm.gov.tr
Tariffs and Classification of Goods
Turkey’s tariff schedule is based on both the Harmonized Coding System (HS) and the Combined Nomenclature (CN) of the European Union within the framework of the Customs Union. Import duties are calculated on cost, insurance and freight (CIF) prices and are levied as a percentage on the landed value of the good. The importer is responsible for payment of the Turkish value-added tax (VAT), which is set at 18% for the majority of imports or 26% for luxury goods. Goods on which duty was paid on entry to an EU country can be admitted duty-free to Turkey and vice versa (with exceptions for agricultural goods and some industrial products). Clearance time is usually one to three days, depending on the type of freight. In the event of a classification dispute, the higher duty can be paid with the intent to seek reimbursement at a later date.
Standards
The Turkish Standards Institute (TSE) is responsible for setting standards in Turkey. TSE approval is required to import any product covered under these standards. Many categories of products are subject to restrictions and special requirements such as narcotics (prohibited) and weapons (subject to strict license control). Items such as live animals, medicines and pharmaceuticals, food and plant products, organic chemicals, telecommunications equipment, ozone-depleting substances, explosives, banknotes and commercial paper, radioactive materials and temporary import of goods for exhibition may require additional permissions and certificates from government agencies.
Foreign Investment in Turkey
Foreign direct investment plays an important role in the Turkish economy. The Government has introduced reforms to improve the investment environment in Turkey, such as simplified procedures, new legislation and tax incentives to attract foreign investors. Under Turkey’s programme to privatize state enterprises, foreign investors benefit from the same rights and incentives as local investors.
Free Trade Zones in Turkey
Turkey has numerous free trade zones, considered to be outside the jurisdiction of Turkish customs authorities. Goods can be imported duty-free, assembled, manufactured, stored, repackaged and re-exported without paying tariffs. Unlike many free zones around the world,
Turkish free zones allow sales into the Turkish market, subject to a fee.
