Customs and Customs Clearance

We will give some basic information about customs in that post. You would find replies to important questions such as; What is customs? What is clearance? What Does Clearance Do? What are the Customs Clearance Procedures?

What is Customs?

It is the tax, duty or fee levied on any item exported from a country or imported into a country in accordance with the Customs Laws in force. The concept of customs is also used for the region where all these transactions are carried out. The customs institution in Turkey works under the supervision and responsibility of the Ministry of Customs and Trade. Therefore, the current customs laws in force are inspected by this ministry.

What is Clearance?

All states, without exception, have independent and their own customs territories. Of course, the entry and exit procedures of goods and goods in circulation for both import and export in these customs areas are kept under control. If deemed necessary, various procedures are carried out at this point. These practices are carried out by all states and these practices are carried out according to various international rules. Thus, states fulfill their responsibilities to each other in these transactions.

What Does Clearance Do?

The entry into the borders of the products subject to trade between the states with the customs clearance process is controlled, regulated, and recorded. In the absence of customs procedures, no stakeholder will be able to profit from imported products and commercial goods that will enter the relevant country.

In addition, security weaknesses will be minimized since each product entering the country can be tracked with customs clearance. The inspection of the goods entering the country is of great importance for the peace and tranquility of the country and society.

Customs also specify a borderline for countries and contribute to the prestige of countries in the international arena.

What are the Customs Clearance Procedures?

Almost all products entering countries from abroad are subjected to a "customs approved process or use" specified in customs laws. For the goods, these procedures can be;

- subjected to a customs regime

- placing in a free zone

- destruction

- re-export

- or leaving it to customs.

What are the Steps of Customs Clearance?

Customs consultants usually assist customers in order to successfully carry out the necessary procedures during the customs clearance phase. However, if it is necessary to explain in a simple way, the customs clearance steps can be listed as follows:

- Completing the production of the relevant goods, packaging, and making them available for shipping

- Providing logistics organization. ( We suggest you read "What is Logistics" Article)

- Loading the containers and transferring the goods to the loading port or customs gates

- Correct preparation of all necessary documents according to the country's customs legislation to export

- Complete and genuine filling of the customs declaration for shipment

- Inspection of the goods before the customs administration of the exporter country

- Departure of the goods from the customs area of the exporting country and termination of the transactions with the export customs declaration

What are the Documents Used in Customs Clearance?

There are too many documents in the customs clearance process that can vary depending on the type of transaction and the type of goods transported. These documents are listed below.

- Customs Declaration: In export, it is a document submitted to the customs administration after the approval of the relevant exporter union by adhering to the Customs Legislation. It is essential to have a declaration in all customs clearance procedures. The declaration is the identity of the relevant transaction.

- A.T.A Carnet: It is a document that allows temporary acceptance of products without any customs tax and can be used instead of a national customs document.

- Analysis Report: It is a "safe" report that requires biochemical analysis, especially for food and chemicals.

- A.TR. Circulation Certificate: It is a document issued by the exporting country's authorized organizations to benefit from the preferential regime stipulated in the Additional Protocol for goods in free circulation in Turkey and the European Union.

- Phytosanitary Certificate: It is a document showing that plant or herbal products do not contain dangerous diseases, harmful substances, drug residues and are protected from pests. It is one of the mandatory documents in agricultural export and import transactions.

- Check List: It is a list of values showing the weight of each unit, package, and container in detail in terms of the vehicles in which the goods are loaded.

- Packing List: It is the list containing numerical information such as the packaging of the products to be exported, the detailed content of each box, bale or sack, and the dimensions and weight of the parcels to be loaded.

- EUR.1 Circulation: It is a document that is regulated in trade with EFTA Countries (Iceland, Liechtenstein, Norway, Switzerland), other countries that have signed a Free Trade Agreement with Turkey, and in the trade of products covered by the agreement signed by Turkey with the European Union in iron and steel products and provide privileges in transitions.

- Commercial Invoice: It is a document issued in its locality that shows the specific information of the product such as the type, name, quantity, unit sales price, and total price of the goods sold. It can be called the final invoice for the import process.

- Proforma Invoice: It is a price offer or pre-invoice presented to the buyer by the seller. The payment transaction is verification for goods that have not yet been completed.

- Consular Invoice: These are the invoices that the exporter company confirms to the consulate by filling out the blank invoice form to be obtained from the consulate of the country to which it will export its goods.

- Certified Invoice: The certified invoice occurs after the approval of the commercial invoice issued by the seller to the foreign buyer by the consulate of the importing country.

-  Freight Invoice: It is an invoice that includes the transportation fee when the freight is paid by the seller. Freight amount can be shown in the cost of the goods or as a separate item. It can be called the logistics invoice in the import process.

- Inspection Certificate: It is a document prepared by an impartial inspection company in order to show whether the traded goods comply with the conditions specified in the sales contract.

- Halal Certificate: It is the document that the Islamic countries demand in the purchase of meat and animals from outside and that the slaughterhouse or breeding is in accordance with Islamic rules.

- Shipment Document (Bill of Lading): It is a transportation contract between the exporter and the logistics company or team that will transport the goods subject to transport from one point to another.

- Maritime Bill of Lading: It is a document proving that the relevant goods are received or loaded for transportation by seaway.

- Road Transport Document: It is a document showing that the customs goods are received by the shipping company or the independent person carrying out the transportation to provide logistics to the desired location.

- Mixed Transport Document: It is a document given to the sender by the carrier in cases where more than one transport vehicle is required for the transport of the relevant goods and showing that the goods will be transported from the place of receipt to the destination.

- Certificate of Origin: It is the document showing the origin of the goods subject to foreign trade, that is, the country of manufacture.

- Special Certificate of Origin (Form AU): It is the certificate of origin issued for exports to countries that give preference in order to benefit from the concessional customs rates provided by the General Preferences system.

- Radiation Analysis Certificate: It is a document proving that agricultural products do not contain more radiation than acceptable rates and that natural ways are not abandoned more than conditions in production.

- Insurance Policy: It is a document showing that the goods subject to insurance are insured against risks in accordance with the contract made between the insured and the insurance company, and the rights and responsibilities of the parties.

- Truck Carnet: It is the document used for vehicles making international transportation between countries that are members of the TIR contract (Transit International Routier) signed in Geneva in 1959.

- Airway Transport Note (Air Bill of Lading): It is the document showing that the goods issued by the airline companies are received for transportation.

What is Customs Duty?

With the definition in the Customs Law No. 4458, Article 3/8; The group of "customs duties" is the whole of the import and export taxes applied to the goods following the relevant laws and regulations or the taxes collected by the customs administrations due to the import or export of the goods from Turkey.

How Long Does Customs Clearance Take?

It is not possible to give a clear time on the duration of customs clearance. This period varies according to the intensity of customs transactions, the nature of the goods or products to be sent, as well as various factors. In general, the answer to the question of how long customs clearance procedures take is that this period will not be more than 10 days. However, different scenarios may occur in shipments for import and export, depending on the policies between countries. In Turkey, the way has been opened to complete the customs passages rapidly under the laws. However, document, paperwork, or various file deficiencies can be seen very often and these transitions can be delayed. Consequently, the customs clearance process needs to complete the necessary documents and files correctly.

Who Can Follow Customs Transactions?

Customs procedures; Direct representatives acting on behalf of someone else and indirect representatives acting only on behalf of someone else, that is, customs consultants, can follow up and finalize the process. Customs consultants provide various services while performing customs clearance procedures.

Except for those who carry out transit transport or request for supply, the person called representative is the people who are residents in the Customs Territory of Turkey. Representatives affiliated with land, sea, and airline companies and shipping organizations have the right to directly follow up customs procedures only if they obtain authorization and power of attorney.

We hope that article about some key points of customs is useful for you. Please check our blog post that may help you to understand some important topics. Please share your comments and give your valuable feedback.

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