Regarding Foreign Trade Regulations

The following information pertains to regulations published in the repeated Official Gazettes dated December 31, 2020, concerning foreign trade and of significant interest to our sectors.

1. Import Regime DecisionLayout 1 (resmigazete.gov.tr)With the updating of import regulations, customs duty rates have also been announced again.
2. Decision Regarding the Imposition of Additional Customs Duties on ImportsLayout 1 (resmigazete.gov.tr)with

• Due to the impact of the pandemic and macroeconomic conditions, the Income Tax Deductions (IGVs) announced in 7 separate decisions between April and August 2020 have been consolidated into a single decision and published.
• The Income Tax Exemptions (IGVs) that will be valid for the upcoming period have been announced without specifying a time period.

Important Notes

1- In accordance with the provisional provisions, transactions that have already commenced under both of the above regulations (if different tax rates apply) are exempt.

2- Also, another regulation dated 31.12.2020 Layout 1 (resmigazete.gov.tr) With regards to the UK's removal from the Customs Union, transactions that have already commenced with that country will also be subject to the same exemption, provided they are completed by February 28, 2021.

3-However, although a Free Trade Agreement (FTA) was signed between Turkey and the United Kingdom (UK) on December 30, 2020, until the FTA enters into force, products imported from the UK will be subject to customs duties (customs duty and housing fund) in accordance with the "Other Countries" column. by taking collateral The imports will be made. It is thought that there will be no problems in our trade, probably due to similar decisions from the British side as well.

4-However, we have received verbal information from the relevant Ministry that efforts are being made to bring the FTA into effect (legislative and decision-making matters) within 2-3 weeks.

For your information.

Turkish Sector Councils Directorate