Turkiye reduces allowed value limits on and increases duties applicable to B2C e-commerce shipments

Local contact

EY Global

7 Aug 2024
Subject Tax Alert
Categories Indirect Tax
Jurisdictions Türkiye

Turkiye has amended its customs law to address quality degradation issues affecting an increasing number of goods sent from abroad via the post and express couriers. Specifically, the Decision on the Amendment of Certain Articles of the Customs Law No. 4458 significantly reduces the declared value of goods that may be sent through Simplified Customs Declaration (SCD) and increases the Single Fixed Rate Duty on these shipments. The new law was published in the Official Gazette No. 32624, dated 6 August 2024,

Background

Goods arriving to an individual in Turkiye via postal or express courier transport within specified limits can be declared through an SCD by paying the Single and Fixed Duty through postal administration or express courier operators that meet conditions determined by the Ministry of Trade of Turkiye or can be declared under the normal procedure within the designated limits.

According to an announcement made by the Ministry of Trade on 6 August 2024, due to the quality degradation of goods coming to Turkiye from abroad via post and express courier and the rapid increase in these imports, there has been a surge in complaints from consumers, manufacturers, merchants, industrialists and chambers of commerce regarding sales, production and employment losses, necessitating action on this matter.

Changes made

Under the legislative amendment, the value limit is reduced from €150 to €30 for goods subject to the Single and Fixed Duty that (1) do not have a commercial quantity or nature, (2) arrive in Turkiye to an individual via postal or express courier transport, and (3) are declared through Simplified Customs Declaration by postal administration or express courier companies. Additionally, the Single and Fixed Duty rate levied to these shipments has been increased from 20% to 30% if the shipment comes directly from European Union countries, and from 30% to 60% if it comes from other countries.

Similarly, the value limit for goods arriving in Turkiye to an individual via postal or express courier transport and declared under the normal procedure without a Simplified Customs Declaration by postal administration or express courier companies has been reduced from €150 to €30. Within this scope, goods that do not have a commercial quantity and nature and are valued at more than €30 but not more than €1500 can be declared for free circulation under the normal procedure by postal administration or express courier operators.

This Decision will come into force 15 days after its publication (i.e., 21 August 2024).

For additional information concerning this Alert, please contact:

Kuzey Yeminli Mali Müsavirlik A.S., Istanbul
  • Sercan Bahadir, Global Trade and Indirect Taxes Leader, Partner
  • Yakup Gunes, Partner
Ernst & Young LLP (United States), Turkish Tax Desk, New York
  • Gamze Durgun

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.