Turkey: Tarriffs, trade, taxes, trademarks
Tariffs: Turkey formed a customs union with the European Union in 1996. Within the Customs Union goods move freely between the EU and Turkey without being subject to customs duties or quantitative restrictions. In line with the Customs Union, Turkey has eliminated all customs duties and charges having equivalent effect, and quantitative restrictions applied on imports of industrial products from the European Community. For products imported into Turkey from third countries, Turkey applies the rates of protection specified in the Community’s common customs tariff, except for those products classified as “sensitive.” Customs duties on “sensitive” products will be eliminated gradually over a five-year period.
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The Turkish government estimates that as a result of its accession to the European Customs Union, the average duty rate for imports from the European Union and EFTA countries has dropped from 10 percent to zero. These include Israel, Hungary, Romania, Lithuania, Estonia, Latvia, the Czech Republic, Slovenia, Bulgaria, and Macedonia. For products imported from third countries, including the United States, the average duty rate has dropped from 10 percent to 5 percent.
Turkey is a member of GATT/WTO and regulates its customs practices in line with those requirements.
Customs Valuation: Import duties are calculated exclusively on C.I.F. prices. Importers are responsible for paying the VAT. The VAT is calculated on a C.I.F. basis plus duty rate and any other applicable charges levied before the goods clear customs. Most industrial products are charged a rate of 15 percent, with a ceiling of 23 percent.
Import Licenses: An importer only needs a tax number to import all but restricted items.
Export Controls: All exporters are required to be a member of one of the 13 exporters’ unions in Turkey.
Import/Export Documentation: Turkish documentation procedures follow the European Union system. A commercial invoice, a certificate of origin and a bill of lading or airway bill, depending on the method of shipment used, must accompany all commercial shipments. Phytosanitary certificates are necessary for food and agricultural commodity imports
Membership in Free Trade Associations: The EU confirmed Turkey’s status as an EU candidate in December 1999. The customs union commits Turkey to adopt the EU common external tariff and a commercial policy “substantially similar” to that of the EU, including adoption of the EU preferential trade regime with third countries.
Taxes: The corporate tax rate is 46 percent. Personal income tax rates
are progressively structured, and vary between 25 and 50 percent. Turkey has double-taxation
avoidance treaties with the Netherlands, Switzerland, Germany, Belgium, Luxembourg,
Kuwait, and Austria. A treaty with the United States is currently under negotiation.
Foreign Investment: Turkey has been pursuing liberal and outward-oriented economic policies since the mid-1980s.
Foreign investors are subject to restrictions on establishment in certain sectors. Investments in financial services and in the petroleum sector require special permission from the Turkish government.
Free Trade Zones: Free-trade zones (FTZs) have been established in Antalya, Izmir, Mersin, Istanbul, Ataturk Airport, Adana and Trabzon.
Economic Data
Total GDP: Purchasing power parity $409.4 billion (1999 est.)
GDP Growth: -5% (1999 est.)
Per capita GDP: $6,200 (1999 est.)
Inflation Rate: 65% (1999 est.)
Trade Balance: $14 billion trade deficit.
Trade with RI: Turkey is Rhode Island’s 42nd largest trading
partner, with $1.6 million in exports in 1998.
Exports: $26 billion: textiles and apparel, foodstuffs, iron and steel
manufacturers. Export trading partners: Germany (21%), U.S. (9%), UK (7%), Italy
(6%), and France (6%), in 1999.
Imports: $40 billion: machinery, semi-finished goods, chemicals, transport
equipment, fuels. Import trading partners: Germany (14%), Italy (8%), US (8%),
France (8%), Russia (6%), UK (5%), in 1999.
Best Prospects: Telecommunications services and equipment; electrical power systems; oil and gas pipeline; information technology; franchising; building products; defense industry equipment; automotive parts and service equipment; architectural/construction/engineering services; pollution control equipment; medical equipment; textile machinery and equipment; food processing & packaging equipment.
Key Contacts
Bryant College, John H. Chafee Center for International Business
RI Export Assistance Center, Raymond W. Fogarty, Director
World Trade Center, Edward Barr, Manager
RI State Directorate, Maureen Mezei, International Trade Director
Contact: Mary-Ruth Foley
Telephone: (401) 232-6566
Fax: (401) 232-6416
E-mail: mrfoley@itdn.net
Web site: http://www.rieac.org
U.S. Export Assistance Center, Department of Commerce
Contact: Keith M. Yatsuhashi, International Trade Specialist
Telephone: (401) 528-5104
E-mail: kyatsuha@mail.doc.gov
U.S. Small Business Administration
Contact: Marilyn Bogue, International Trade Officer
Telephone: (401) 528-4585
E-mail: marilyn.bogue@sba.gov
U.S. Embassy in Turkey
Ataturk Bulvari 110,
06100 Kavaklidere, Ankara
Telephone: (90-312) 468-6110
Fax: (90-312) 467-0019
Embassy of the Republic of Turkey
2525 Massachusetts Avenue, NW
Washington DC 20008
Telephone: (202) 612-6700
Fax: (202) 612-6744
U.S. Department of Commerce
David DeFalco, Turkey Desk Officer
Office of Western Europe
U.S. Department of Commerce
14th and Constitution Avenue, NW
Washington, D.C. 20230
Telephone: (202) 482-2178
Fax: (202) 482-2897
Email: david_de_falco@ita.doc.go
For extended information, visit http://www.itdn.net/pbn/pbnitdn.htm.
Thanks to Bryant College for providing this data via its International Trade Data Network.
