PREFERENTIAL RULES OF ORIGININ AN ACCESSION COUNTRY: TURKEY : PREFERENTIAL RULES OF ORIGIN IN AN ACCESSION COUNTRY: TURKEY Tamer ŞEN, İGMD EU and Foreign Relations Belgrade, 17th October 2006


TURKEY-EU RELATIONS: TURKEY-EU RELATIONS HISTORY: The beginning of relations between the European Union and Turkey dates back to 31 July 1959, when Turkey applied for association. The EEC accepted the application, and after the negotiations, the Ankara Agreement creating an association was signed on 12 September 1963 with the European Economic Community. NEGOTIATION PROCESS: On 17 December 2004, the European Council decided to open accession talks with Turkey as of 3 October 2005. SCREENING PROCESS: On 20 October 2005, the Commission launched the process of screening Turkey's laws and regulations as a first step towards accession negotiations with Turkey. Screening process was completed two weeks ago.


İSTANBUL CUSTOMS CONSULTANTS ASSOCIATION: İSTANBUL CUSTOMS CONSULTANTS ASSOCIATION Founded in 1927 An Association Representing 1506 Customs Consultants and 3545 Assistant Customs Consultants, 70 % of total number in Turkey. Strict relations with Customs Administration. A consultative body in customs related issues Full member of Confiad Pan-European Network since 2003 Near-future member of IFCBA


LEGAL FRAMEWORK: LEGAL FRAMEWORK Customs Law (CL) No. 4458 Implementing Regulation of Customs Law (IRCL)


KINDS OF RULES OF ORIGIN: KINDS OF RULES OF ORIGIN Customs Law & IRCL refer to different kinds of rules of origin: Non-Preferential Rules of Origin (CL Articles 17-21 / IRCL Articles 23-33) Preferential Rules of Origin (CL Article 22 / IRCL Article 34)


PREFERENTIAL RULES OF ORIGIN: PREFERENTIAL RULES OF ORIGIN Art. 22 of CL and Art. 34 of IRCL Those rules shall; In the case of goods covered by the trade agreements, be determined in accordance with those agreements In the case of goods benefiting from preferential tariff measures covered by the autonomous trade arrangements, be determined in accordnce with the Council of Ministers Decrees.


 PREFERENTIAL TRADE SCHEME OF TURKEY : PREFERENTIAL TRADE SCHEME OF TURKEY Bilateral Trade Arrangements: Free Trade Agreements with 3rd countries (FTAs) Free Trade Agreement with the EC for the ECSC products Decision No. 1/98 of the EC-Turkey Association Council for agricultural products Autonomous Trade Arrangements: 1. Generalised System of Preferences (GSP)


Trade Regime Between Turkey and the EC: Trade Regime Between Turkey and the EC


TRADE WITH 3RD PARTIES: TRADE WITH 3RD PARTIES Art. 16 of Decision No.1/95 of the EC-Turkey Association Council (Customs Union Decision) “Turkey shall align itself progressively with the preferential customs regime of the Community within five years as from the date of entry into force of the Decision” This alignment concerns both the autonomous regimes and preferential regimes with 3rd countries.


PRESENT SİTUATİON FOR THE ALIGNMENT OF PREFERENTIAL TRADE AGREEMENTS RULES OF ORIGIN: PRESENT SİTUATİON FOR THE ALIGNMENT OF PREFERENTIAL TRADE AGREEMENTS RULES OF ORIGIN Within the context of Art.16, Turkey has concluded free trade agreements with countries/group of countries and autonomously granted preferences for the developing and the least developed countries in the framework of GSP.


BILATERAL FREE TRADE AGREEMENTS : BILATERAL FREE TRADE AGREEMENTS Decision No.1/98 of the EC-Turkey Association Council for agricultural products Macedonia Croatia Bosnia-Herzegovina Palestine


LEGISLATION CONCERNING THE SYSTEM OF PAN-EUROPEAN CUMULATION OF ORIGIN (SPECO) (1/2): LEGISLATION CONCERNING THE SYSTEM OF PAN-EUROPEAN CUMULATION OF ORIGIN (SPECO) (1/2) Turkey has taken part in the SPECO since 1999. This system also includes the EC, EFTA, Romania and Bulgaria. Currently trade of agricultural products with the EC is based on bilateral cumulation and left out of the SPECO.


LEGISLATION CONCERNING THE SYSTEM OF PAN-EUROPEAN CUMULATION OF ORIGIN (SPECO) (2/2): LEGISLATION CONCERNING THE SYSTEM OF PAN-EUROPEAN CUMULATION OF ORIGIN (SPECO) (2/2) Turkey had also free trade agreements with Poland, the Czech Republic, Slovakia, Hungary, Slovenia, Lithuania, Latvia and Estonia. Since these countries had become the members of the EC in May 2004, these free trade agreements were annulled.


LEGISLATION CONCERNING THE SYSTEM OF PAN-EURO-MEDITERRENEAN CUMULATION OF ORIGIN (SPEMCO) (1/2): LEGISLATION CONCERNING THE SYSTEM OF PAN-EURO-MEDITERRENEAN CUMULATION OF ORIGIN (SPEMCO) (1/2) Turkey also takes part in the SPEMCO which is formed by the extension of the SPECO to the Mediterranean countries. The parties involved in this system are the EC, EFTA, Romania, Bulgaria, Syria, Lebanon, Israel, Palestine, Egypt, Tunisia, Algeria, Morocco and Faroe Islands.


LEGISLATION CONCERNING THE SYSTEM OF PAN-EURO-MEDITERRENEAN CUMULATION OF ORIGIN (SPEMCO) (2/2): LEGISLATION CONCERNING THE SYSTEM OF PAN-EURO-MEDITERRENEAN CUMULATION OF ORIGIN (SPEMCO) (2/2) The full diagonal cumulation requires a chain of free trade agreements between all the parties of the system. Not yet applicable totally. Within the context SPEMCO only these diagonal cumulation can be implemented for the moment: Turkey-Israel-European Union Turkey-Morocco-European Union Turkey-Romania-European Union Turkey-Tunisia-European Union


ORİGİN LEGİSLATİON CONCERNİNG THE GENERALİSED SYSTEM OF PREFERENCES (GSP): ORİGİN LEGİSLATİON CONCERNİNG THE GENERALİSED SYSTEM OF PREFERENCES (GSP) Turkey has granted preferential regime to beneficiary countries under GSP since January 1, 2001. The efforts for the adoption of the Generalized System of Preferences (GSP) have been completed. Turkey has fully adopted the EU-GSP system in 25 August 2004.


PROOFS OF ORIGIN (1/4): PROOFS OF ORIGIN (1/4) EUR.1 and EUR-MED Movement Certificates Issued by the Chambers of Commerce and Industry and endorsed by the Customs Authorities on application by the exporter. EUR.1 Movement Certificates for fishery products exported to the EC are issued and endorsed by the Customs Authorities.


PROOFS OF ORIGIN (2/4): PROOFS OF ORIGIN (2/4) Invoice declaration and Invoice Declaration EUR-MED A trade facilitation, Made out by any exporter for consignments of a value less than € 6000, Made out by only “approved exporter” for consignment of a value higher than € 6000.


PROOFS OF ORIGIN (3/4): PROOFS OF ORIGIN (3/4) Certificates of Origin Form A Used by the beneficiary countries for preferences granted under the scheme of GSP.


PROOFS OF ORIGIN (4/4): PROOFS OF ORIGIN (4/4) Supplier’s declarations & INF 4 Certificates Supplier’s declaration is used to establish the preferential origin of the goods which are in free circulation in the Customs Union area between Turkey and the EC. INF 4 certificate is used for the verification of supplier’s declaration.


BINDING ORIGIN INFORMATION (BOI) (1/2): BINDING ORIGIN INFORMATION (BOI) (1/2) LEGAL FRAMEWORK Article 9 of CL Article 11 of IRCL


BINDING ORIGIN INFORMATION (BOI) (2/2): BINDING ORIGIN INFORMATION (BOI) (2/2) Scope of Application issued upon request of the applicant issued for both imports and exports (preferential or non – preferential origin) valid only for the transactions after the date of issue valid for 3 years (unless annulled or amended)


RESPONSIBILITIES AND PENALTIES: RESPONSIBILITIES AND PENALTIES Customs Consultant is jointly liable with the owner of goods. Article: 241 of CL If the fault of the declarant does not cause tax deficit, only an irregularity penalty is paid. İt is possible that you can amend the fault. (by paying an irregularity penalty) Article 234/1 of CL: If the fault influence the tariff application, you have to pay the duty difference and triple customs duty.


Slide24: THANK YOU FOR YOUR ATTENTİON... Tamer ŞEN www.igmd.org tsen@igmd.org +90-212-249 45 00