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October 5, 2020
Turkey extends application of temporary and high rate of Additional Customs Duties through 31 December 2020
On 23 September 2020, through Presidential Decree No. 2955, changes were made to various decisions that came into force during 2020 regarding the application of Additional Customs Duties (ACD). Specifically, certain increased rates will now remain in effect through 31 December 2020.
For many products, the increased rates of ACD were expected to be applied through 30 September 2020 and then reduced as of 1 October 2020. After the amendments made through Presidential Decree No.2955 dated 23 September 2020, it has been announced that the increased rates will continue through 31 December 2020.
For example, the rate of 20% ACD will be applied until 31 December 2020 for home type coolers with Harmonized Schedule (HS) Code 8418.21.10.00.00. The ACD rate will be decreased to 15% as of 1 January 2021 instead of 1 October 2020 after this amendment.
With this Decree, the validity periods of Annex-2 tables of the below Decrees, where higher rates were applied, have been extended until the end of 2020. The Decisions amended regarding the validity period include:
In Annexed Lists to the ACD Decrees, which indicate the ACD rates to be collected, the ACD rate is 0% for goods which originate in European Union (EU) and in Free Trade Agreement countries. EU-origin goods must be imported along with an A.TR movement certificate. Diagonal origin cumulation countries are also included for this 0% ACD rate. In these cases, submission of correct origin certificate is critical.
The scope of Decrees mentioned above are as follows:
For background on the new and amended ACD Decrees, see EY Global Tax Alert, Turkey introduces new Additional Customs Duties, temporarily amends certain current duties, dated 23 April 2020. It is important to note that there will be no change in the implementation dates of the decisions not mentioned above.
For additional information with respect to this Alert, please contact the following:
Kuzey Yeminli Mali Müsavirlik A.S., Istanbul