In this regard, Common transit is used for the movement of goods between the EU Member States, the EFTA countries (Iceland, Norway and Switzerland– including Liechtenstein in as far as it forms a Customs Union with Switzerland) Macedonia, Serbia and Turkey.

In the capacity as the 2015 year chairmanship of EU/EFTA Joint Committees of the Conventions on common transit and on the simplification of formalities in trade in goods, The Ministry of Customs and Trade of the Republic of Turkey conducted and finalized the accession process of both Macedonia and Serbia to the Conventions.

Thereby firstly, Macedonia becomes the Contracting Party of the Conventions as of 1 July 2015.  Then, as of 1 February 2016, Serbia joined the Common Transit System. By this accession, number of the Contracting Parties to the Conventions increased to 35.

The accession to the conventions enables easier and faster movement of goods due to the realization of the transit procedure by submitting a single transit declaration in electronic form in the place of departure which is valid for the entire journey until the place of destination within the contracting parties of the Convention. The transit declaration is simultaneously used as a so-called entry summary declaration which should be submitted for commodities entering any EU Member State.

The New Computerized Transit System (NCTS) is a system that is based on the use of advanced computer technology and electronic data processing. NCTS is the basis for the implementation of the transit procedure by exchanging electronic messages between agents in the customs procedure and customs offices, as well as among customs offices. It serves as a tool for management and control of the transit operations and provides more modern and efficient management from the system that used to be based on paper.

On the other hand, Turkish Customs Administration completed the technical studies of adoption of the amendments to the Convention and its Appendices both with respect to the substance and terminology on the basis of the decision of EU-EFTA Joint Committee on Common Transit No. 1/2016, for the purpose of their alignment with the requirement of the Union Customs Code as well as its relevant delegated and implementing acts, which has been in effect as of 1st May 2016.

Source: Ministry of Customs and Trade

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The prime minister, finance minister and central bank governor declared that the economy goes back to normality and there is no needed for cash movement restriction.
After Iceland’s biggest banks collapsed during the financial crisis, the government took some economic measures.

The restrictions were put in place to prevent panicked foreign investors from taking their money out of Iceland; nevertheless, thanks to tourism and investment, the economy recovered.

Source: Euronews

Date: 20 March 2017

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Source: TurkStat

Due to the implementation of the liberalization process since the 1980s, the Turkish economy has experienced a period of substantial growth. Foreign trade, in respect of both exports and imports, has grown rapidly and notable changes in the structure of exports have been observed. In this regard, industrial products have gained prominence over agricultural products.

Turkey became a member of the World Trade Organization (WTO) in 1995. Following this move, it finalized an agreement with the European Union, enabling it to join the Customs Union on January 1, 1996.

Exports
In line with the policies implemented as part of the export-led development model followed since 1980, exportation has become important to Turkey in both qualitative and quantitative terms.

Starting in particular in 1980 and continuing up to the mid-1990s, significant developments have been observed in the market share held by labor-intensive industrial products such as textiles and clothing, iron and steel, and foodstuffs.

In 1996, following the establishment of a Customs Union with the European Union, Turkey’s exports entered a new structural transformation process. Developments in recent years show that production and exportation have increased substantially in high-technology sectors, where goods include electrical and electronic machinery and equipment, as well as in the automotive industry. In this respect, it can also be observed that the export market share of manufactured industrial products has increased.

Top 10 Export Product Groups in 2016

Source: TurkStat

Major Export Markets in 2016 

Source: TurkStat

Imports
The Turkish import regime highlights the liberalization of Turkish imports in line with its commitment to complete the Customs Union with the EU, its relationship with EFTA, and its obligations under the World Trade Organization (WTO). Turkey has placed special emphasis on its commitment to reduce customs duties in order to align itself with the Common Customs Tariff. Turkey has made some necessary modifications to its import regime, and by January 1, 1996 the Customs Union with the EU became effective.

The basic aims of Turkey’s import policy since the early 1980s can be summarized as follows:

• To reduce protectionist measures in conformity with the new GATT rules
• To reduce bureaucratic procedures
• To secure a supply of raw materials and intermediary goods at suitable prices with certain quality standards

Turkey’s Membership of International Trade Organizations
Turkey has been a member of the World Trade Organization (WTO) since 1995. The country’s commitment to integrating regional and international trade norms can be seen in its participation in and membership of various organizations, including

• the Economic Cooperation Organization (ECO),
• the United Nations Conference on Trade and Development (UNCTAD),
• the Organization of the Black Sea Economic Cooperation (BSEC),
• the World Customs Organization (WCO),
• the International Chamber of Commerce (ICC),
• D-8,
• various other organizations

In addition to the Customs Union with the EU, Turkey has signed Free Trade Agreements (FTA) with

• Albania,
• Bosnia-Herzegovina,
• Chile,
• Egypt,
• Faroe Islands*,
• Georgia,
• Ghana*,
• Iceland,
• Israel,
• Jordan,
• Kosovo*,
• Lebanon*,
• Macedonia,
• Malaysia,
• Mauritius,
• Montenegro,
• Moldova*,
• Morocco,
• Norway,
• Palestine,
• Serbia,
• Singapore*,
• South Korea,
• Switzerland,
• Lichtenstein,
• Syria (pending),
• Tunisia. (*to be ratified)

 Date: 13 March 2017

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.