ANNOUNCEMENT 31 Dec 2021

On 31 December 2021, the government of Turkey introduced an import tariff quota on pertex fabric and coagulated backing fabric.

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

Official Gazette of Turkey, (31.12.2022) “Bazı Sanayi Ürünleri İthalatında Tarife Kontenjanı Uygulanması Hakkında Karar (No. 50055)”, [Presidential Decree on Import Tariff Quota on Certain Textile Products], (No. 50055). Available at: https://www.resmigazete.gov.tr/eskiler/2021/12/20211231M5-2.pdf

Inception date: 01 Jan 2022 | Removal date: open ended

Import tariff quota

On 31 December 2021, the government of Turkey introduced an import tariff quota (ITQ) on pertex fabric and coagulated backing fabric classified in the Turkish Customs Schedule under the customs tariff subheadings 5903 and 3921.13. Specifically, the import tariff quota on pertex fabric provides an exemption from the additional duties imposed on the subject product (see related state act) within a tariff quota of 10 million square meters; and the import tariff quota on coagulated backing fabric provides an exemption from the additional duties imposed on the subject product within a tariff quota of 5 million square meters. Previously there was no effective import tariff quota on the subject product.

The government offers quota rights only to the domestic producers who use the subject product as an input in their production process. As a result of this Decree being issued, pertex fabric and coagulated backing fabric that previously paid the additional duties of 10% and 14% are now exempt from the additional duties within the tariff quota. The MFN tariff rates of the subject products are 6.5% and 8%. Notably, the ITQ policy has no effect on the MFN tariffs but the additional duties.

The decree enters into force on 1 January 2022. In the past, in April 2020, the government introduced an ITQ on the subject product, but the ITQ expired on 31 December 2020 (see related state act).

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
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Inception date: 01 Jan 2022 | Removal date: open ended

Tax or social insurance relief

On 31 December 2021, the Turkish government lifted the additional duties on pertex fabric and coagulated backing fabric within an import tariff quota of 10 million square meters and 5 million square meters respectively provided that the imported goods are used as input in the production process. Importers of the subject product for purposes other than using the subject products in the production process will be subject to additional duties of 10% and 14%.

The decision enters into force on 1 January 2022.

 
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