February 15, 2023
Export prices can be brought to Türkiye in a foreign currency type different from the foreign currency specified in the invoice/Customs Declaration Form
It is essential to bring the export prices to Türkiye in the declared Turkish currency or foreign currency, and it is possible to bring the price in a different currency than the declared one.
The export value made in TL can be brought in foreign currency.
It is possible to bring foreign currency into Türkiye in return for exports made in Turkish currency.
If the export cost is brought with the passenger, it must be declared at the customs.
It is obligatory to declare the export cost to the customs authorities if the passenger is effectively brought to Türkiye with the passenger.
Regarding the foreign currencies that are left to the free use of the exporter:
Service export,
Transit trade,
Sales made with a special invoice to non-residents in Türkiye,
For non-residents, VAT is calculated for sales, micro-export and free zone transaction form, and all the costs of export transactions amounting to USD 5,000 or equivalent foreign currency or Turkish Lira.
Fifty percent of the costs are free to be saved in export transactions made to the countries listed below and included in Annex 3 of the Central Bank of Republic of Türkiye’s (CBRT) Export Circular.
Countries in Annex-3:
(With the letter of Republic of Türkiye Ministry of Treasury and Finance dated 04.11.2022 and numbered 1640977)
1- Azerbaijan
2- Algeria
3- Morocco
4- Kazakhstan
5- Uzbekistan
6- Tunisia
7- Turkmenistan
8- Ukraine
In exports carried out according to CFR and CIF delivery method, the freight and insurance cost and the rental fees obtained within the framework of the financial and commercial leasing contract, which the lessee does not have the right to purchase, are considered as foreign currency.
Closing the export account (Bring the export prices to Türkiye)
It is obligatory to be brought to Türkiye within 180 days from the date of actual export.
Without prejudice to the periods specified in the fourth paragraph of article 4 of the CBRT’s Export Circular, and the export dates and durations in Article 7 for exports with special characteristics, if the foreign currency (including the advance) is brought to Türkiye within 180 days from the actual export date and an Export Value Acceptance Document is issued, the export account must be closed at the intermediary bank.
In advance payment, it is obligatory to be brought to Türkiye within 180 days from the actual export date.
In cases where cash payment and another payment method are declared together with cash payment, the export account is closed if the export price including the cash price is brought to Türkiye within 180 days from the actual export date.
If the export price is accepted outside the return period, but within the 5-working-day notice period, the export account is closed without notifying the relevant Tax Office or Tax Office Directorate. In transactions where the export value is accepted after the notification, the requests for closing the export account are made directly to the relevant Tax Office or Tax Office Directorate.
The export accounts that remain open due to the fact that the banks do not issue an export fee acceptance certificate regarding the export costs that are not accepted within the framework of international sanctions are closed by the relevant Tax Office or Tax Office Directorate upon submission of the bank letter containing the issue in question within the warning period.
Export accounts that cannot be closed due to the inability to collect the export amount covered by the export credit insurance policy by insurance companies licensed by Türk Eximbank and the Insurance and Private Pension Regulation and Supervision Agency to operate in export credit insurance, is canceled by the banks, provided that the said bank or the said insurance companies confirm that the issuance fee has been paid to the relevant person, or it is closed by the Tax Offices on the condition that the warning period and the additional periods remain.
In the export made by leasing within the framework of the Export Regime and Financial Leasing Legislation in force; If the terms of the contract are more than 180 days and at the end of 180 days, the contract includes undue debts, the monthly rental fee does not exceed USD 15,000 or its equivalent in foreign currency or Turkish Lira, regardless of the total value of the leased item, the export account is canceled and closed directly by the banks or by the Tax Offices on the condition that the warning period and the additional periods are kept.
Mandatory documents to be submitted in closing the export account
In order to close the export account, it is obligatory to submit the Customs Declaration sample/Customs Declaration information, the relevant export price acceptance documents, the sales invoice and the documents subject to discount and deduction to the intermediary bank.
Responsibility for the collection of the export price and closing the export account
The factoring company is responsible for the collection of the export cost and the closing of the export account within the period of returning to the country (including additional periods), and for the factoring transactions where the export cost is paid from the domestic resources of the factoring company.
Banks that act as an intermediary for export are obliged to monitor the importation and acceptance of the export prices related to the declarations they are aware of and to perform the relevant discount and deduction transactions.
The banks that act as an intermediary for export, in the export transactions that have “Israel” in the 17th digit titled “Destination Country” of the declarations they are aware of, by checking the recipient address in the 8th digit of the Customs Declaration, they are obliged to confirm from the exporters that the export is not actually made to Palestine and to establish a transaction accordingly.
Notification to Tax Office Presidencies or Tax Office Directorates
If the export account cannot be closed in due time, including the additional periods, the open account amount will be determined by the intermediary bank within 5 working days in accordance with the form in Annex-1 of the CBRT’s Export Circular, the relevant Tax Office or Tax Office Directorate is notified. In the explanation part of the aforementioned form, it is written in detail how much of the relevant export price is connected to the export price acceptance document.
In factoring transactions where the export price is paid by factoring companies from domestic sources, only factoring companies are reported to the relevant Tax Office or Tax Office Directorate regarding the export accounts that are not closed.
In order to close the export account, a 90-day warning is sent to the relevant parties within 10 working days from the notification by the Tax Office Presidencies or Tax Office Directorates. During this warning period, the exporters must close the export account or document the force majeure or justifiable situation to the relevant Tax Office or Tax Office Directorate.
For those that are not closed at the end of the 90-day warning period, among the transactions within the scope of the first paragraph of the 28th article of the aforementioned Circular, Tax Offices or Tax Office Directorates will be appointed to the Public Prosecutors’ Office in accordance with the Law No. 1567 on the Protection of the Value of Turkish Currency, in order to initiate legal action, a notification is made and the Ministry is informed about the notification.
Regarding the banks that fail to notify the open export account within the period specified in the first paragraph, the relevant Tax Office Directorates or Tax Office Directorates notify the relevant Public Prosecutor’s Offices in order to initiate legal action in accordance with the Law No. 1567 on the Protection of the Value of Turkish Currency.
Obligation to Sell Export Prices to the Central Bank and its Ratio
As of 18.04.2022, at least 40% of the export prices tied to the export fee acceptance certificate or Currency Purchase Certificate are sold to the bank that issued the export fee acceptance certificate or Currency Purchase Certificate.
These amounts are sold to the Central Bank on the same day at the foreign exchange buying rate valid for the transaction day and announced by the Central Bank and transferred to the Central Bank’s bank account. The full equivalent of the said amount is paid by the bank to the exporter in Turkish currency.
It is possible to accept the export prices declared in foreign currency as Turkish Lira
It is possible to accept the export prices in Turkish Lira as of 7.4.2022, even if the export prices are declared in foreign currency regarding the export transactions to Ukraine and Russia.
COUNTRIES WITH EXCEPTIONS IN BRINGING THE EXPORT PRICE TO TÜRKİYE
(With the letter of Republic of Türkiye Ministry of Treasury and Finance dated 04.11.2022 and numbered 1640977)
1- Afghanistan
2- Angola
3- Belarus
4- Benin
5- Djibouti
6- Ethiopia
7- Ivory Coast
8- Palestine
9- Gabon
10- Ghana
11- Guinea
12- Iran
13- Cameroon
14- Kenya
15- Kyrgyzstan
16- North Korea
17- Cuba
18- Liberia
19- Lebanon
20- Egypt
21- Moldova
22- Nigeria
23- Senegal
24- Somalia
25- Sudan
26- Syria
27- Saudi Arabia
28- Tajikistan
29- Tanzania
30- Venezuela
31- Yemen
Ali KARAKUŞ
CPA, Independent Auditor
Karen Audit
İstanbul,
February 15, 2023
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 Karen Audit 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.
