Customs Glossary
Definitions of terms used in foreign trade and customs operations, as we actually encounter them in practice. Each page covers a single term: when the document is required, what it is often confused with, and which of our services it connects to.
İhracat Belgeleri
- A.TR Movement CertificateThe A.TR Movement Certificate is the official document that allows industrial products in free circulation under the Customs Union between Türkiye and the European Union to enter EU member states without paying customs duty.
- EUR.1 Movement CertificateThe EUR.1 Movement Certificate is a document used in exports to countries with which Türkiye has signed a free trade agreement, or in agricultural exports to the EU, that proves the product meets the preferential rules of origin and thereby allows the shipment to benefit from a reduced customs duty.
- A.TR Movement Certificate vs. EUR.1 Movement CertificateThe difference between A.TR and EUR.1 is the core distinction that determines which movement certificate an export requires: A.TR proves that the goods are in free circulation under the Türkiye-EU Customs Union, while EUR.1 proves the product's preferential origin status under the relevant agreement.
- Certificate of OriginA Certificate of Origin is a non-preferential (general) origin document that proves which country an exported good is deemed to originate from; it is issued when the importing country specifically requests it, or when a trade policy measure based on origin applies.
- Packing ListA packing list is a standard shipping document, attached to the customs declaration, that lists item by item how the goods in a shipment are packed: which carton holds what, and each package's quantity, weight and dimensions.
- Cumulation of OriginCumulation of origin is a system that allows countries which have a free trade agreement between them and apply the same rules of origin to use inputs originating in each other’s territory in production, without the finished product losing its preferential origin.
Sınıflandırma ve Vergi
- GTİPGTİP is the 12-digit code that shows the classification of goods in Türkiye’s Customs Tariff Schedule; this code determines which customs duty rate a product is subject to and which permits and documents it requires.
- Binding Tariff Information (BTI)Binding Tariff Information (BTI) is an official classification decision issued by the competent customs authority when there is a dispute over which GTİP code applies to a given item; it binds the authority itself for six years from the date it is issued.
- Customs ValueCustoms value is the tax base on which customs duty and other financial charges are calculated in imports; as a rule, it is found by starting from the price actually paid or payable in a sale of the goods for export to Türkiye, and adding the elements the legislation lists.
- Determining the GTİP CodeDetermining the GTİP code is the process of establishing a product’s 12-digit tariff position in Türkiye’s Customs Tariff Schedule based on its material, intended use and degree of processing; it starts from the product’s technical characteristics, not its commercial name.
- Customs Duty Calculation Based on Tariff Classification and ValueCustoms duty calculation is the process of applying the duty rate determined by a good’s GTİP code to its customs value (CIF price), and the result varies according to the product, its origin and any trade agreement in place.
- The Difference Between the HS Code and GTİPThe HS code is the 6-digit international goods classification system used jointly by the member countries of the World Customs Organization; GTİP is Türkiye's national code, which extends these 6 digits to 12 digits within Türkiye's own Customs Tariff Schedule.
Taşıma ve Liman
- Delivery OrderA delivery order is the delivery document issued by the carrier or shipping agent, against presentation of the bill of lading, that allows goods to be actually collected from customs/the terminal in an import. In Türkiye the document is still commonly called an "ordino".
- Bill of LadingA bill of lading is a document of title showing that the carrier has received the goods or loaded them on board, evidencing the contract of carriage, and on presentation of which the goods are delivered; the Turkish Commercial Code regulates it specifically for maritime carriage.
- SupalanSupalan is a simplified customs procedure under which imported goods are examined by customs while still on the means of transport that carried them, and delivered directly to their owner, without being placed in a temporary storage facility or a customs warehouse; it is limited to goods of a certain weight, volume or nature.
- Verified Gross Mass (VGM)Verified Gross Mass (VGM) is the verified total weight of a loaded container to be carried by sea, including its cargo; under the SOLAS Convention, no loaded container may be put on board a ship without this information.
- IncotermsIncoterms are eleven international delivery-term rules published by the International Chamber of Commerce (ICC) that define the place of delivery of the goods, carriage/insurance responsibility and the point at which risk passes between buyer and seller; the version currently in force is Incoterms 2020.
Ödeme ve Banka
- SBLCAn SBLC (Standby Letter of Credit) is a bank guarantee under which the bank undertakes to pay the beneficiary if the applicant fails to fulfil its contractual obligation; unlike a commercial letter of credit, it only comes into play on default and is not a primary means of payment.
- NCNDAAn NCNDA (Non-Circumvention, Non-Disclosure Agreement) is a correspondence agreement used in commodity trading under which the parties undertake to keep confidential the buyer, seller and source information introduced by an intermediary, and not to bypass that intermediary by dealing directly; it is not a customs document defined under Turkish legislation.
- ICPOAn ICPO (Irrevocable Corporate Purchase Order) is a signed preliminary document in commodity trade by which the buyer tells the seller that it intends to purchase a specific product, quantity and price range; on its own it does not create a binding sale contract.
- LOILOI is an abbreviation that means three different things depending on context: a guarantee/indemnity document in shipping and logistics (Letter of Indemnity), a statement of intent in trade and company mergers (Letter of Intent), and a laboratory test method in chemistry (Loss on Ignition); which one is meant can only be determined from the context of the sentence.
- Discrepancy in a Letter of CreditA discrepancy in a letter of credit is the bank's finding that the documents presented do not fully comply with the terms of the credit or the UCP 600 rules, and its notice of that non-conformity to the relevant party; a discrepancy does not automatically mean payment will be refused — it makes payment conditional on the applicant's acceptance.
Gümrük Süreci
- Customs Power of Attorney (Gümrük Vekaletnamesi)A customs power of attorney is a notarised document in which a company authorises a customs broker to carry out customs procedures on its behalf, including registering declarations, and sets out the scope of that authority.
- Customs WarehouseA customs warehouse is a customs facility where goods are held under customs supervision without customs duty being paid and without being subject to trade policy measures; it is established in two types — a public general warehouse open to anyone, or a private warehouse belonging to a single operator.
- Inward ProcessingInward processing (IP) is a conditional customs procedure that allows raw materials or intermediate goods to be used in manufacturing a product for export to be imported either without paying customs duty, or with the duty paid and later refunded, in exchange for an export undertaking.
- Release for Free CirculationRelease for free circulation is the customs procedure that forms the legal basis of import: goods arriving in the customs territory acquire the status of goods in free circulation in Türkiye once import duties have been paid and trade policy measures have been applied.
- Red Line at CustomsThe red line at customs is the inspection line assigned to a declaration by the customs administration's risk analysis system, requiring the goods to undergo both document checks and physical inspection; it is the most extensive control of the four lines (green, yellow, red, blue).
- Single Window System (Tek Pencere Sistemi)The Single Window System is the application and document system, run by the Ministry of Trade, through which the permits, approvals and conformity documents required from different public authorities during customs procedures are obtained electronically from a single point.
- Customs Declaration TypesThe customs declaration type is the classification showing which customs procedure is being requested for a shipment; it is fixed by the four-digit procedure code entered in box 37 of the declaration, and it determines which of the import, export, customs warehousing, or processing procedures the goods will be placed under.
- Objection to a Customs Administrative Fine (Gümrük Cezasına İtiraz)An objection to a customs administrative fine is an administrative application, made by petition to a higher authority within fifteen days of notification, against a fine notified by the customs administration; recourse to the courts as a rule follows only once this application has concluded.
- Control CertificateA control certificate is a pre-import approval document issued by the relevant ministry, before the goods enter the country, for products subject to inspection on grounds of human health, animal and plant health, or compliance with technical regulations.
- TAREKS (Risk-Based Trade Control System)TAREKS is a web-based system, operated by the Republic of Türkiye Ministry of Trade, that carries out safety, technical-regulation compliance, and quality checks on imported and exported goods electronically and on a risk basis.
- Veterinary Border Control Post (VSKN)A Veterinary Border Control Post is an official inspection post at the country’s border, staffed by personnel of the Republic of Türkiye Ministry of Agriculture and Forestry, where document, identity and physical checks are carried out on imports or transit of live animals, animal products, animal by-products and animal feed.
- Plant Quarantine and Phytosanitary CertificatePlant quarantine is a plant health inspection carried out to prevent the cross-border spread of harmful organisms carried by plants and plant products; the outcome of this inspection is documented with the phytosanitary certificate (plant health certificate), issued by the exporting country's official plant protection authority.
- Control Certificate vs. Conformity LetterA control certificate and a conformity letter serve different functions: the control certificate is a pre-import approval document, while the conformity letter is the document through which the relevant ministry reports the outcome of its inspection after actually examining the goods. Whether the two are required together or separately depends on the annex (list) of the communiqué the product is subject to.