The WCO is noted for its work in areas covering the development of international conventions, instruments, and tools on topics such as commodity classification, valuation, rules of origin, collection of customs revenue, supply chain security, international trade facilitation, customs enforcement activities, combating counterfeiting in support of Intellectual Property Rights (IPR), integrity promotion, and delivering sustainable capacity building to assist with customs reforms and modernization. The WCO maintains the international Harmonized System (HS) goods nomenclature, and administers the technical aspects of the World Trade Organization (WTO) Agreements on Customs Valuation and Rules of Origin.

In 1947, thirteen European countries established a Study Group to examine customs issues identified by the General Agreement on Tariffs and Trade (GATT). This work led to the adoption in 1948 of the Convention establishing the Customs Co-operation Council (CCC), which was signed in Brussels. On January 26, 1953 the CCC’s inaugural session took place with the participation of 17 founding members. Turkey is the founder member of the Customs Co-operation Council.

WCO membership subsequently expanded to cover all regions of the globe. In 1994, the organization adopted its current name, the World Customs Organization. Today, WCO members are responsible for customs controls in 180 countries representing more than 98 per cent of all international trade. Palestine has been latest member country since she joined as of 24 March 2015.

The WCO is internationally acknowledged as the global center of customs expertise and plays a leading role in the discussion, development, promotion and implementation of modern customs systems and procedures. It is responsive to the needs of its members and its strategic environment, and its instruments and best-practice approaches are recognized as the basis for sound customs administration throughout the world.

The WCO’s primary objective is to enhance the efficiency and effectiveness of member customs administrations, thereby assisting them to contribute successfully to national development goals, particularly revenue collection, national security, trade facilitation, community protection, and collection of trade statistics.

The WCO Secretariat is headed by a Secretary General, who is elected by the WCO membership to a five-year term. The current WCO Secretary General is Kunio Mikuriya from Japan, who took office on 1 January 2009. The WCO is governed by the Council, which brings together all Members of the Organization once a year, in a meeting chaired by an elected Chairperson. Additional strategic and management guidance is provided by the Policy Commission and the Finance Committee. Several WCO committees, such as the Harmonized System Committee, the Permanent Technical Committee, the Technical Committee on Customs Valuation, Technical Committee on Rules of Origin, the Capacity Building Committee, and the SAFE Working Group, provide a platform for developing instruments and best practices on customs competencies.

In order to achieve its objectives, the WCO has adopted a number of customs instruments, including but not limited to the following:

1) The International Convention on the Harmonized Commodity Description and Coding System
2) The International Convention on the Simplification and Harmonization of Customs procedures
3) ATA Convention and the Convention on Temporary Admission (Istanbul Convention)
4) The Arusha Declaration on Customs Integrity
5) The SAFE Framework of Standards to Secure and Facilitate Global Trade

Source: Ministry of Customs and Trade

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.