presentation of turkey (1) - millennium indicatorsmdgs.un.org/unsd/trade/ws...

UNITED NATIONS DEPARTMENT OF ECONOMIC AND SOCIAL AFFAIRS STATISTICS DIVISION

ESA/STAT/AC.142.19

UNITED NATIONS ECONOMIC COMMISSION FOR AFRICA

International Workshop on Country Practices in Compilation of

International Merchandise Trade Statistics, 12-16 November 2007, Addis Ababa

Country Presentation Statistics Turkey

Item 11: Coverage and time of recording

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Prime Ministry Republic of Turkey Turkish Statistical Institute

External Trade Statistics Team

Inward and Outward Processing in Turkey

by Bülent TUNGUL

MEDSTAT II - Workshop in Addis Ababa:Country Practices in

Compilation of International Merchandise Trade Statistics

12-16 November 2007

13/10/2007

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OutlineIntroductionCustoms Procedure Codes (CPCs) Statistical Procedure Codes (SPCs)Nature of TransactionInward Procedure (IPR)Outward Procedure (OPR)Encountered Problems

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IntroductionTurkey joined the Customs Union with the EU in 1996.

Customs practices are harmonized with EU.

Turkey is member of a number of international conventions, such as the revised Kyoto Convention, the Convention on Harmonised System

Customs in Turkey has a comprehensive computer system, BILGE, in place for customs control and trade facilitation. This system into a web-based technology. EDI system is used more comman. 99% of declaration are electronic.

TURKSTAT is responsible for producing and dissemination of external trade statistics

Special trade system (Relaxed definitation)

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Customs Procedure Codes (CPC)

The Customs Procedure Codes (CPCs) identify the customs and/or excise regimes to which goods are being entered and from which they have been removed (where this applies).

The CPC is completed at export as well as import.

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Main Customs Procedures1) Release for free Circulation (Importation)2) Transit3) Customs Warehousing4) Inward Processing5) Processing under customs control 6) Temporary Admission7) Outward Processing8) Export

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Statistical Procedure Codes (SPC)

SPC Exports Imports

0 Exclusion Exclusion

1 Normal Normal

3 for outward processing after outward processing

5 after inward processing, suspension system for inward processing, suspension system

6 after inward processing, drawback system for inward processing, drawback system

7 for economic outward processing for textiles after economic outward processing for textiles

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Nature of TransactionNature of transaction codes are useful mainly for adjusting data for BOP and National Accounts purposes, to exclude certain movements and for data checking (e.g. processing)

Operations following repair and maintenance against payment52

Operations following processing under contract51

Operations with a view to repair and maintenance against payment

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Operations with a view to processing under contract41

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Responsible Bodies in Turkey

Under Secretariat for CustomsUnder Secretariat for Foreign TradeGeneral Secretariats of Exporters UnionTURKSTAT

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Inward ProcessingThe inward processing procedure makes it possible to import goods

temporarily so that they can be processed (assembling, manufacturing, transforming) or repair) and then to export the resulting compensating products, while benefiting from an exemption from import duties or taxes which would be carried out under the trade policy normallyapplicable to imported goods.

The aim of the Inward Processing regime is to enable exporters to supply raw materials, intermediate unfinished goods for the production of their exports without being subject to customs duties, including VAT. The customs duties or other relevant charges are not applied when the goods are exported to a third country.

Goods that are not to be evaluated in accordance with this regime are animals, fishes, goods causing environmental pollution.

Period of Authorization is at most 12 months in respect of sectors. In some exceptional cases, it can be more than 12 months.

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Inward ProcessingInward processing can be classified by

two main types of systems

The Suspension SystemEquivalent goods

The Drawback System

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Procedure ofInward Processing

ForeignGoods

ForeignGoods

ValueAdded

Importsduties

Foreign Country orFree Zone

National Market

TurkeyCustoms Territory

otherstaxes

*

Two options: 1.- duty free in entry (suspension sys.)2.- reimbursement in exit (drawback sys.)

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Inward ProcessingData are available separately on:

Imports for inward processing (suspension system)

Imports for inward processing (drawback system)Exports after inward processing (suspension

system).Exports after inward processing (drawback

system)

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Outward ProcessingOutward processing makes it possible to

export goods temporarily for processing and to import the compensating products with a full or partial exemption from duties and levies.

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Procedure ofOutward Processing

TurkeyCustoms Territory

Goods in freecirculation

Goods ValueAdded

Foreign Country orFree Zone

PartialImportsduties

Partialotherstaxes

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Outward ProcessingData are available separately on:

Exports for outward processingExports for outward processing for textilesImports after outward processingImports after outward processing for textiles

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Share of Customs Procedure Codesin Turkey's Exports - 2006

51%45%

3% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%0%

10%

20%

30%

40%

50%

60%

3151 1000 1040 2100 1042 3153 2151 1072 1073 1091 2123 3141 3152 2153

Customs Procedure Codes

Sha

re (%

)

Share (%)

Share of Customs Procedure Codesin Turkey's Imports - 2006

68%

17%12%

2% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%0%

10%

20%

30%

40%

50%

60%

70%

80%

4000 4071 5100 5171 5300 4010 4053 6121 6321 6771 5121 9100 9171 4100 5271 5123 5200 4171

Customs Procedure Codes

Shar

e (%

)

Chart-1

Chart-2

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Trade by SPCs

Value: M$SPC Exports Share% Imports Share% Difference

0 Exluding 1,804 2.1 21,171 13.21 Normal 41,415 47.4 120,594 75.03 Outward PR 563 0.6 183 0.1 3805 Inward PR (Suspension) 43,557 49.9 18,799 11.7 24,7586 Inward PR (DrawBack) 0 0.0 1 0.07 Economic Outward for textiles 0 0.0 0 0

Total 87,339 100.0 160,747 100.0

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Encountered ProblemsStatistical value is not always gross value

Errors in the nature of transaction codes

Goods for processing for BOP definition not recorded separately

How can ownership of the goods be recorded?

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Thank you for your attention!

presentation of turkey (1) - millennium indicatorsmdgs.un.org/unsd/trade/ws...

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