Types of Imports and Import Payment Methods

Types of Imports and Import Payment Methods

International trade plays a critical role in the economic growth and development of countries. Imports allow countries to procure the goods and services they need from abroad. In Turkey, import processes are regulated within certain legal frameworks, with various types and payment methods available. This article will detail the types of imports and import payment methods according to Turkish trade regulations.

Types of Imports

In Turkey, imports can be carried out in different ways. Understanding the types of imports helps in conducting trade activities more effectively and in compliance with the laws. Here are the main types of imports:

1. Definitive Importation
   • Definition: The process of bringing goods into Turkey permanently.
   • Features: Customs duties and other import taxes are paid when the goods enter Turkey. This type of import means that the goods are released for free circulation.
   • Examples: Electronic devices, textile products, food items.
2. Temporary Importation
   • Definition: The process of bringing goods into Turkey for a specified period, after which they are re-exported.
   • Features: Goods brought in under temporary importation can be exempt from taxes or subject to a tax guarantee.
   • Examples: Fair and exhibition materials, machines brought in for testing and trial purposes.
3. Transit Importation
   • Definition: The process of goods passing through Turkey to be sent to another country.
   • Features: Under transit importation, goods undergo Turkish customs procedures but no taxes are paid.
   • Examples: Products shipped from a third country through Turkey to another country.
4. Warehouse Importation
   • Definition: The process of bringing goods into specific customs warehouses and storing them there.
   • Features: Goods stored in warehouses are not subject to tax while in storage. They can later be released for free circulation or re-exported.
   • Examples: Large-volume and high-value products.

Import Payment Methods

The payment methods used in import transactions ensure secure and smooth trade for the parties involved. The commonly used import payment methods in Turkey are:

1. Advance Payment
   • Definition: The importer makes the payment before receiving the goods.
   • Features: This method is secure for the seller but risky for the importer. The importer is at risk if the goods are not delivered on time or as specified.
   • Usage Areas: Commercial partnerships with established trust.
2. Letter of Credit (L/C)
   • Definition: A payment guarantee issued by the importer’s bank to the exporter’s bank.
   • Features: This method is secure for both the seller and the buyer. The bank makes the payment once certain conditions are met.
   • Usage Areas: Widely used in international trade transactions.
3. Cash Against Goods
   • Definition: The importer makes the payment after receiving the goods.
   • Features: This method is secure for the importer as payment is made only after the goods are received. However, it is risky for the seller.
   • Usage Areas: Firms with established trust and regular trade relations.
4. Documents Against Payment (D/P)
   • Definition: The exporter sends the goods to the importer, and the documents are handed over once payment is made.
   • Features: The importer cannot receive the goods without making the payment. This method is secure for the seller and relatively secure for the buyer.
   • Usage Areas: Firms with developed trust relationships.

Considerations According to Turkish Trade Regulations

Import transactions in Turkey are carried out within various regulations and legal frameworks. Importers need to adhere to the laws by considering the following points:

1. Customs Declaration: The importer must accurately and completely fill out the customs declaration for the goods to be imported. The declaration should include GTIP codes and other necessary information.
2. Taxes and Duties: The taxes and duties required during import transactions must be paid by the importer. These may include customs duties, VAT, and special consumption taxes.
3. Quality and Standards: The imported goods must comply with the quality and standards applicable in Turkey. The importer should obtain the necessary documents to ensure compliance with these standards.
4. Permits and Licenses: Certain products may require special permits or licenses for importation. The importer should obtain permits from the relevant ministries and institutions.
5. Inspections and Controls: During customs procedures, the importer must cooperate and provide the necessary information for inspections and controls conducted by customs officers.

Import transactions are a crucial part of international trade and are carried out within specific regulations and frameworks in Turkey. Types of imports and payment methods ensure secure and smooth trade. By adhering to the laws and carefully planning, importers can successfully conduct trade operations. Choosing the correct type of import and payment method is vital in this process.