Türkiye increases additional customs duty rates on textile industry

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EY Global
26 Oct 2023
Subject Tax Alert
Categories Indirect Tax Customs & Excise taxes
Jurisdictions Türkiye

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  • On 16 October 2023, a Presidential Decree that increases additional customs duty rates imposed on textile industry was promulgated in the Official Gazette of Türkiye. The increases are set to be applied as of 15 November 2023.
  • The amendment covers both raw materials and final products in textile goods, and it is estimated that the tax burden due to this amendment will range from 30% to 166.7%.
  • Not all products classified as textile goods are covered by the amendment; therefore, it will be useful for those importing goods into Türkiye of goods classified in Chapters 51 to 63 of Harmonized System (HS) Code to check the additional customs duty rate changes on that basis.

A new Presidential Decree increases additional customs duty rates imposed in Türkiye on both raw materials and final products in the textile industry. Via Decree No. 7709, promulgated in the Turkish Official Gazette dated 16 October 2023 and numbered 32341, the additional customs duty rates collected on the import of certain goods classified in Chapters 51 to 63 were increased by rates ranging from 30% to 166.7%.

This Decree will enter into force on the thirtieth day following the date of publication (i.e., 15 November 2023).

The Decree modifies additional customs duty rates for most of the goods classified in these Chapters, increasing the rates by a range of 30% to 166.7%, although no change has been made in the rates of some goods.

Product description

Increase in additional customs duties

Apparel and clothing

30%

Fabrics, cotton, filaments, fibers

35%

Other made-up textile articles

45%

Staple fibers and certain cottons

64%

Man-made filaments and certain cottons

100% — 166.7%

In this context, it is considered beneficial for real and legal persons importing goods classified in Chapters 51 to 63 to check the additional customs duty rate changes on the basis of the Harmonized System (HS) Code.1

Importantly, the new Decree also indicates that during the importation of the goods classified in Chapter 51 to 63 with United Arab Emirates origins, additional customs duty rates will be applied at a discounted rate for some products.

 

For additional information with respect to this Alert, please contact the following:

Kuzey Yeminli Mali Müsavirlik A.S., Istanbul
  • Sercan Bahadir, Global Trade and Indirect Taxes Leader
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.

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    1 The Harmonized Commodity Description and Coding System generally referred to as "Harmonized System" or simply "HS" is a multipurpose international product nomenclature developed by the World Customs Organization.