Turkey’s strategic position at the crossroads of Europe, Asia, and the Middle East, combined with its membership in the EU Customs Union, makes it an ideal base for international trade operations. With a young population of over 85 million consumers and access to neighboring markets totaling over 1.5 billion people, Turkey is a significant player in global trade flows. This guide by Attorney Bilal Alyar (Istanbul Bar Association, Reg. No: 54965) covers the legal framework for import-export businesses and trade law in Turkey in 2026.

Turkey’s EU Customs Union membership since 1996 provides duty-free access for industrial goods traded between Turkey and the EU’s 27 member states — a unique advantage that no other non-EU country enjoys at this scale. Combined with free trade agreements covering 25+ countries, strategic port infrastructure, and a competitive manufacturing cost base, Turkey has become a major node in global supply chains for automotive, textiles, electronics, and machinery. Setting up a Turkish company is the first step for foreign businesses looking to leverage these trade advantages, with free trade zones offering additional tax incentives for export-oriented manufacturers.

Setting Up an Import-Export Business in Turkey

Any Turkish company (LLC or JSC) can engage in import-export activities after completing the standard company formation process. There is no separate import-export license required for most goods. However, the company must register with the Turkish Exporters Assembly (TİM) through the relevant sector exporters’ union to obtain an exporter registry certificate. For imports, registration with the Ministry of Trade’s digital systems (GTIP, Single Window) is essential.

Foreign companies can also operate through a branch office or agent in Turkey. For foreign nationals, establishing a Turkish entity is recommended as it provides direct access to the Customs Union benefits and simplifies documentation. The entire registration process can be completed within 1-2 weeks.

EU Customs Union: Turkey’s Trade Advantage

Turkey’s Customs Union with the EU, in effect since 1996, covers industrial goods and processed agricultural products. This means: no customs duties on industrial goods traded between Turkey and the EU, common external tariff applied to goods imported from third countries, and mutual recognition of many product standards and certifications. The Customs Union does not cover raw agricultural products, services, or public procurement, though modernization negotiations have been ongoing to expand its scope.

For businesses, the Customs Union means that goods manufactured or processed in Turkey can be exported to any EU member state without customs duties. This has made Turkey a major manufacturing hub for automotive, textiles, electronics, and machinery destined for European markets.

Turkey’s Free Trade Agreements

Beyond the EU Customs Union, Turkey has signed free trade agreements (FTAs) with over 25 countries and groups, including the UK, South Korea, Malaysia, Chile, Morocco, Egypt, and the Mercosur bloc (under negotiation). Each FTA has specific rules of origin, product coverage, and preferential tariff rates. Turkey also benefits from the Generalized System of Preferences (GSP) when importing from developing countries.

Tariff Structure and Customs Classification

Turkey uses the Harmonized System (HS) for customs classification, with the Turkish Statistical Institute (TÜİK) maintaining the Turkish customs tariff schedule (GTIP). Import duties vary widely by product category: industrial machinery often enters at 0-5%, textiles at 10-20%, and agricultural products can face much higher rates plus additional levies. Anti-dumping and safeguard duties may apply to specific products from certain countries.

Export Incentives and Support Programs

The Turkish government provides extensive export incentives including: Eximbank export credits with subsidized interest rates, market research and development support grants, international fair participation subsidies, branding and promotion program (Turquality), Design and innovation support, and free trade zone benefits. These programs are administered through the Ministry of Trade and various sector-specific agencies.

Free Trade Zones

Turkey operates 18 active free trade zones offering significant incentives: 100% corporate tax exemption (for manufacturing companies with pre-2009 licenses until their license expires), customs duty and VAT exemption on goods entering the zone, exemption from stamp duty and real estate tax, unrestricted profit repatriation, and streamlined customs procedures. Major zones include Istanbul Atatürk Airport FTZ, Mersin FTZ, Izmir Aegean FTZ, and Kocaeli FTZ.

Sanctions Screening and Compliance

Companies engaged in international trade through Turkey must be vigilant about sanctions compliance. Turkey follows UN Security Council sanctions and has its own national sanctions framework. However, Turkey has not adopted EU or US autonomous sanctions in all cases, creating a complex compliance landscape. Companies trading through Turkey should implement robust sanctions screening procedures covering SDN lists, sectoral sanctions, and country-specific embargoes. Failure to comply can result in criminal penalties and reputational damage.

Product Certification and Standards

Turkey has adopted many EU standards through its Customs Union commitments. The TSE (Turkish Standards Institution) is the primary standards body. For many industrial products, CE marking is required for import and sale. Specific product categories require additional certifications: food products need approval from the Ministry of Agriculture, pharmaceuticals from the Turkish Medicines and Medical Devices Agency (TITCK), and electrical equipment must meet relevant TSE standards. Since 2021, an electronic product safety tracking system (GTS) has been implemented for certain consumer goods.

Cross-Border E-Commerce Regulations

Turkey has specific regulations for cross-border e-commerce, including: customs exemption for individual imports up to 150 EUR (reduced from previous thresholds), mandatory registration of foreign e-commerce companies targeting Turkish consumers on the ETBİS system, consumer protection rules including 14-day right of withdrawal, and Turkish language and payment requirements. Major platforms must also appoint a Turkish legal representative under Law No. 7253.

Frequently Asked Questions

Do I need a special license to import goods into Turkey?

Most goods do not require a special import license. However, certain categories including pharmaceuticals, weapons, radioactive materials, and certain agricultural products require specific permits from the relevant ministry. A general company registration and customs broker authorization are sufficient for standard commercial imports.

Can I use Turkey as a re-export hub?

Yes. Turkey’s free trade zones are commonly used for re-export operations. Goods can be imported into a free trade zone, processed or repackaged, and re-exported without paying Turkish customs duties. The Customs Union also facilitates re-export of goods to EU markets. Proper rules of origin documentation is essential.

How do I resolve a trade dispute with a Turkish company?

Options include: negotiation, mediation (increasingly popular since Turkey’s mandatory mediation law for commercial disputes), arbitration (Istanbul Arbitration Centre — ISTAC, or ICC), and litigation in Turkish commercial courts. The Istanbul Commercial Courts and Istanbul Regional Court of Justice have dedicated chambers for international trade disputes.

EU Customs Union: Turkey’s Unique Trade Advantage

Turkey’s Customs Union with the EU, established by Decision No. 1/95 and effective since January 1, 1996, covers industrial goods and processed agricultural products. This agreement is unique — Turkey is the only non-EU country with such a comprehensive customs union arrangement. Key implications for businesses: no customs duties on industrial goods traded between Turkey and EU member states, Turkey applies the EU’s Common External Tariff (CET) on imports from third countries, mutual recognition of technical standards and product certifications (CE marking), and Turkey is included in the EU’s preferential trade agreements with third countries for covered products. The Customs Union does NOT cover: raw agricultural products (subject to separate bilateral agreements), services, government procurement, or intellectual property beyond TRIPS standards. Modernization negotiations have been ongoing since 2016 to expand the scope to include services, agriculture, and public procurement.

Turkey’s Free Trade Agreements Network

Turkey has signed free trade agreements (FTAs) with over 25 countries and regional groups, creating a preferential trade network that complements the EU Customs Union. Key agreements: UK-Turkey FTA (2021): Post-Brexit agreement maintaining preferential access for industrial goods. South Korea-Turkey FTA (2013): Phased tariff elimination on industrial goods, with special provisions for automotive and electronics. EFTA-Turkey (1992): Covering Switzerland, Norway, Iceland, and Liechtenstein. Additional FTAs: Malaysia, Singapore, Chile, Morocco, Tunisia, Egypt, Serbia, Bosnia, Georgia, Moldova, Faroe Islands, and others. Trade agreements under negotiation: Mercosur (Brazil, Argentina, Uruguay, Paraguay), Japan, India, and the Gulf Cooperation Council (GCC). For companies established in Turkey, these FTAs provide preferential access to markets representing billions of consumers.

Export Incentives and Government Support

Turkey provides extensive export support through Eximbank and the Ministry of Trade: Eximbank Credits: Pre-shipment export credits, post-shipment financing, buyer credits (for foreign buyers of Turkish goods), and investment loans for export-oriented manufacturers — all at subsidized interest rates. Market Research Support: Up to 60% reimbursement of market research costs in new export markets. International Fair Participation: Individual participation support (60-75% of costs) and Turkish pavilion organization at major trade fairs. Turquality Program: Turkey’s flagship brand development program supporting Turkish brands competing in international markets with up to $1 million annual support per brand covering marketing, design, legal protection, and quality certification. Design and Innovation Support: Funding for industrial design and R&D activities targeting export markets. Free Trade Zones: 18 active FTZs with 100% corporate tax exemption on export profits for manufacturing companies. For import-export businesses, combining FTZ operations with export incentives can significantly reduce effective tax rates.

Customs Procedures and Authorized Economic Operator (YYS)

Turkey’s customs procedures are governed by Customs Law No. 4458, aligned with the EU Customs Code. Import procedures include: customs declaration (gümrük beyannamesi) filed electronically through the BILGE system, document review and risk assessment, physical inspection (for risk-flagged shipments — approximately 5-10% of all imports), payment of applicable duties, VAT (20%), and any special consumption tax (ÖTV), and release of goods. The Authorized Economic Operator (Yetkilendirilmiş Yükümlü Statüsü — YYS) program provides significant trade facilitation benefits for qualifying companies: reduced physical inspections (green lane treatment), simplified customs procedures, priority processing, mutual recognition with EU AEO and US C-TPAT programs, and reduced guarantee requirements. YYS certification requires: 3+ years of customs operations, compliance record, financial solvency, and implementation of internal controls (ISO 27001, quality management systems).

Sanctions Screening and Export Controls

Companies engaged in international trade through Turkey must implement robust sanctions and export control compliance: Turkish sanctions regime: Turkey follows UN Security Council sanctions and has its own national sanctions list maintained by MASAK. However, Turkey has not adopted all EU or US autonomous sanctions. Export controls: Turkey’s export control regime (Stratejik Mal regulations) restricts the export of dual-use goods, weapons, and certain technology items. Export licenses are required for goods on the control lists. Practical compliance: Companies should implement automated screening systems covering UN, Turkish, and (for commercial prudence) EU/US OFAC sanctions lists. Failure to comply with UN/Turkish sanctions carries criminal penalties including imprisonment. For companies also subject to US/EU jurisdiction, the compliance requirements are more complex.

Additional Trade FAQ

What are the typical customs duties for importing goods into Turkey?

Duties vary widely by product: industrial machinery: 0-5%, textiles and apparel: 10-20%, processed food: 15-35%, agricultural products: 15-50%+ with additional levies, automotive vehicles: 10-20%, electronics: 0-5%. The specific rate is determined by the product’s HS (Harmonized System) classification code (GTIP). For goods from EU and FTA partner countries, preferential rates (often 0%) apply with proper origin documentation.

Can I use Turkey as a re-export hub to the EU?

Yes, subject to rules of origin. Goods manufactured or substantially processed in Turkey can enter the EU duty-free under the Customs Union. Goods merely transshipped through Turkey without substantial transformation do not qualify for Customs Union benefits. Free trade zones are commonly used for re-export operations, providing customs duty and VAT exemptions for goods that enter, are processed, and re-exported without entering Turkish customs territory.

Import Licensing and Restrictions

While most goods can be imported into Turkey without a specific import license, certain categories require prior authorization from the relevant ministry or regulatory body:

Products Requiring Import Licenses: Pharmaceuticals and medical devices (TITCK — Turkish Medicines and Medical Devices Agency), weapons, ammunition, and explosives (Ministry of National Defense), radioactive materials (TAEK — Turkish Atomic Energy Authority), certain agricultural products subject to quotas or seasonal restrictions (Ministry of Agriculture), telecommunications equipment (BTK — Information and Communication Technologies Authority), and certain chemicals and precursors (Ministry of Environment). Prohibited Imports: Certain goods are entirely prohibited: counterfeit products (subject to seizure and destruction at customs), products violating intellectual property rights (trademark, patent, copyright), certain hazardous waste materials, and goods from countries under comprehensive Turkish/UN sanctions.

Customs Clearance: Step-by-Step Process

The standard import customs clearance procedure in Turkey follows these steps:

Pre-Arrival: The importer (or their customs broker — gümrük müşaviri) prepares the customs declaration using the BILGE (Bilgisayarlı Gümrük Etkinlikleri) electronic customs system. Required documents include: commercial invoice (ticari fatura), packing list, bill of lading/airway bill, insurance certificate, certificate of origin (preferential origin certificate for duty-free treatment under FTAs/Customs Union), and any sector-specific certificates (health, quality, conformity). Risk Assessment: The customs system assigns a risk channel: green channel (no document check, no physical inspection — approximately 30% of declarations), yellow channel (document check only — approximately 40%), red channel (document check plus physical inspection — approximately 25%), and blue channel (post-clearance audit — approximately 5%). Duties and Taxes: Customs duty (varies by HS code — 0% for most industrial goods from EU/FTA partners, up to 50%+ for agricultural products from non-preferential countries), VAT at 20% (calculated on CIF value plus customs duty), Special Consumption Tax (ÖTV) for applicable products (alcohol, tobacco, vehicles, luxury goods), and stamp duty (0.948% of the CIF value). Release: Upon payment of duties and taxes, the goods are released from customs control. For Authorized Economic Operators (YYS), the process is significantly streamlined.

Incoterms in Turkish Trade Practice

Turkey follows the International Chamber of Commerce (ICC) Incoterms 2020 rules for international trade. Common terms used in Turkish import/export contracts: FOB (Free on Board): The most common term for Turkish exports. The seller delivers goods to the vessel at the port of shipment. Risk transfers to the buyer when goods pass the ship’s rail. Used extensively in bulk commodity exports (steel, agricultural products, textiles). CIF (Cost, Insurance, and Freight): Common for Turkish imports. The seller arranges and pays for transportation and insurance to the destination port. The buyer bears risk from the moment goods pass the ship’s rail at the origin port, but the seller arranges logistics. EXW (Ex Works): The seller makes goods available at their premises. The buyer arranges all transportation, customs clearance, and insurance. Common for factory-direct purchases from Turkish manufacturers. DAP (Delivered at Place): Increasingly popular in Turkish e-commerce and door-to-door delivery arrangements. The seller delivers goods to the named destination, ready for unloading, with import customs clearance being the buyer’s responsibility. For companies establishing Turkish operations for import/export, understanding the customs duty implications of each Incoterm is essential for accurate cost calculations.

Trade Disputes and Resolution Mechanisms

International trade disputes involving Turkish parties can be resolved through several mechanisms:

Negotiation and Mediation: Since 2019, mandatory mediation (arabuluculuk) is required before filing commercial lawsuits in Turkey (TTK). The mediation process typically takes 3-4 weeks. For international trade disputes, ICC mediation rules or the Istanbul Mediation Centre can be used. Arbitration: The preferred method for international trade disputes. Common arbitration institutions: Istanbul Arbitration Centre (ISTAC) — Turkish institution with competitive fees and English-language proceedings, ICC International Court of Arbitration — global standard with Istanbul hearing facilities, and London Maritime Arbitrators Association (LMAA) — for shipping disputes. Turkey is a party to the New York Convention, meaning foreign arbitral awards are enforceable in Turkey (and Turkish awards abroad). Turkish Commercial Courts: Istanbul Commercial Courts have specialized chambers for international trade disputes. Proceedings are in Turkish — simultaneous translation is available but adds cost. Timeline: first instance 12-24 months, appeal 6-12 months. Customs Disputes: Disputes with the Customs Administration regarding classification, valuation, or duty assessment are resolved through: administrative objection to the Regional Customs Directorate (within 15 days), appeal to the Administrative Court (İdare Mahkemesi) if the objection is rejected (within 30 days), and further appeal to the Council of State (Danıştay).

E-Commerce Cross-Border Trade

Turkey’s cross-border e-commerce regulations have evolved significantly: Individual Import Exemptions: Personal imports by Turkish consumers are exempt from customs duties up to 150 EUR per shipment (reduced from 22 EUR in 2023, then raised to 150 EUR). Goods above this threshold are subject to full customs duties and VAT. Foreign Platform Requirements: Foreign e-commerce platforms targeting Turkish consumers must: register with the ETBİS system (Ministry of Trade), comply with Turkish consumer protection rules (14-day withdrawal right, clear pricing, Turkish language product information), and if classified as a “large platform” (>100,000 transactions/year targeting Turkey), appoint a Turkish legal representative and localize data. Turkish E-Commerce Exports: Turkish e-commerce businesses benefit from: micro export exemption (up to 300,000 TRY per year without full export documentation), Eximbank e-commerce export credits, and free trade zone e-fulfillment center operations for tax-efficient cross-border logistics.

Additional Trade FAQ

Do I need a customs broker?

For most commercial imports and exports, engaging a licensed customs broker (gümrük müşaviri) is practically mandatory — while not legally required for all transactions, the complexity of Turkish customs procedures, BILGE system requirements, and document preparation make professional assistance essential. Customs broker fees: typically $50-200 per declaration for standard shipments, with higher fees for complex or specialized goods.

What are Turkey’s key export sectors?

Turkey’s top export sectors by value: automotive (vehicles and parts — $35B+), textiles and apparel ($18B+), steel and iron ($15B+), machinery and equipment ($12B+), electronics ($10B+), agricultural products ($8B+), and chemicals ($7B+). For foreign investors, these sectors offer opportunities for both manufacturing (leveraging Turkey’s Customs Union access to the EU) and trading operations. Setting up a Turkish company provides direct access to the Customs Union — no other non-EU country has this advantage.

Anti-Dumping and Safeguard Measures

Turkey actively uses trade defense instruments to protect domestic industries from unfair foreign competition. The Ministry of Trade administers: Anti-Dumping Duties: Applied when foreign goods are sold in Turkey at prices below their normal value in the exporting country, causing material injury to Turkish domestic industry. The investigation process: a Turkish industry files a petition with the General Directorate of Imports, the Ministry initiates an investigation (notice published in the Official Gazette), provisional measures may be imposed within 60 days, and the final determination is made within 12-18 months. Currently active anti-dumping duties affect: Chinese steel products (various grades and types), Asian textiles, certain chemical products, and glass products from several countries. Safeguard Measures: Temporary import restrictions or tariff increases imposed when a surge in imports threatens to cause serious injury to a domestic industry, regardless of whether the imports are unfairly priced. Turkey has implemented safeguard measures on steel products (aligned with but separate from EU safeguards), certain agricultural products, and textiles from specific countries. For businesses importing into Turkey, checking the current anti-dumping and safeguard duty schedules before making purchasing commitments is essential — an unexpected 20-40% anti-dumping duty can eliminate the economic viability of an import program.

Authorized Economic Operator (YYS): Premium Customs Status

The Yetkilendirilmiş Yükümlü Statüsü (YYS — Authorized Economic Operator) program provides significant trade facilitation benefits for qualifying companies. Benefits: reduced physical inspection rates (green lane treatment — approximately 1-2% inspection vs. 10-15% for standard importers), simplified customs documentation requirements, priority processing at customs checkpoints, reduced financial guarantee requirements (up to 90% reduction), mutual recognition with EU AEO and US C-TPAT programs (facilitating exports to these markets), and eligibility for simplified procedures (approved exporter status, entry in the declarant’s records). Requirements: minimum 3 years of continuous customs operations, clean compliance record (no significant customs violations or tax debts), financial solvency (current ratio above 1, no overdue social security payments), and implementation of internal control systems meeting Customs Administration standards (ISO 27001 for IT security, quality management for logistics operations, and supply chain security measures).

The application process: submit the application with supporting documentation to the Regional Customs Directorate. Customs conducts an on-site audit (typically 2-5 days) covering: physical security of facilities, IT system security, accounting and records management, and supply chain visibility. Processing time: approximately 3-6 months. YYS certification is valid for 3 years and subject to annual compliance reviews. For companies engaged in significant import/export activity, YYS certification can reduce customs processing time by 50-70% and lower compliance costs substantially. The mutual recognition with EU AEO is particularly valuable for Turkey-EU trade — YYS-certified Turkish companies receive trusted trader treatment at EU borders.

Turkey-EU Customs Union: Comprehensive Guide to Rules of Origin

The rules of origin under the Turkey-EU Customs Union determine whether goods qualify for duty-free treatment when traded between Turkey and EU member states. Understanding these rules is critical for businesses leveraging Turkey’s unique Customs Union access:

Wholly Obtained Products: Goods entirely produced in Turkey (or the EU) without any foreign inputs — agricultural products harvested in Turkey, minerals extracted from Turkish soil, and manufactured goods using only Turkish/EU inputs. These automatically qualify for preferential treatment with a Movement Certificate (A.TR). Sufficiently Processed Products: Goods that incorporate non-EU/non-Turkish inputs but have undergone sufficient working or processing in Turkey. The specific requirements vary by product and are defined in the Product-Specific Rules of Origin: for textiles, the “double transformation” rule requires that yarn be produced and the fabric woven/knitted in Turkey; for electronics, the non-originating components must not exceed 40-50% of the ex-works price; for automotive, the “value added” rule requires at least 40-60% domestic/EU content. A.TR Movement Certificate: The key document proving Customs Union eligibility. Issued by the local Chamber of Commerce/Industry upon application. Required information: exporter details, consignee, goods description, HS code, origin status. Digital A.TR is increasingly accepted. Without a valid A.TR, goods entering the EU from Turkey are treated as third-country imports and subject to standard MFN customs duties.

Diagonal Cumulation: Turkey can use inputs from countries with which both Turkey and the EU have FTAs (and which accept diagonal cumulation) without losing preferential origin status. This creates a powerful manufacturing hub advantage — for example, Turkish manufacturers can import raw materials from South Korea (Turkey-Korea FTA + EU-Korea FTA), process them in Turkey, and export the finished goods to the EU duty-free. Diagonal cumulation currently operates with: EFTA countries, Israel, Morocco, Tunisia, Egypt, Jordan, and the Western Balkans. The cumulation network is expanding as Turkey signs new FTAs.

Export Incentive Programs: Detailed Guide

Turkey’s export support ecosystem is one of the most comprehensive globally, administered by the Ministry of Trade and the Turkish Eximbank:

Eximbank Credit Programs: Pre-shipment export credit (ihracat hazırlık kredisi): short-term financing for exporters to purchase raw materials, produce goods, and prepare shipments. Interest rates: subsidized (typically 3-5 percentage points below market rates). Maximum term: 360 days. Post-shipment credit (ihracat alacakları reeskont kredisi): financing secured by export receivables (bills of exchange, documentary credits). Buyer’s credit (alıcı kredisi): long-term financing provided to foreign buyers of Turkish goods — particularly useful for capital goods exports (machinery, construction equipment, vehicles). The foreign buyer receives the credit, and the Turkish exporter receives immediate payment. Investment credit (yatırım kredisi): medium-to-long-term financing for export-oriented manufacturing investments. Country-specific credit lines: Eximbank maintains dedicated credit facilities for key export markets (Africa, Central Asia, Middle East), enabling Turkish exporters to offer competitive financing terms.

Ministry of Trade Support Programs: Market Research Support (Pazar Araştırması Desteği): reimbursement of up to 60% of market research costs in new export markets, including: travel, accommodation, market studies, and consultant fees. Maximum: $150,000 per company per year. International Fair Participation: individual company participation support (60-75% of participation costs including booth rental, transport, promotion materials) and Turkish pavilion organization at major trade fairs worldwide. Turquality Program: Turkey’s flagship brand development program — supporting Turkish brands competing in international markets. Benefits: up to $1 million annual support per brand for: international marketing and advertising, design and branding consultancy, legal protection (trademark registration in target markets), quality certification, and retail space establishment abroad. Program duration: 5 years, renewable. Over 200 Turkish brands currently participate. Design and Innovation Support: R&D and design center incentives (Law No. 5746): income tax exemption for R&D personnel, corporate tax deduction for R&D expenses (200% deduction — effectively doubling the expense for tax purposes), and SGK employer premium support for R&D staff. For companies establishing in Turkey with export ambitions, combining these programs can significantly reduce the effective cost of market entry.

Free Trade Zone Operations: Practical Mechanics

Turkey’s 18 free trade zones operate as customs-excluded territories within Turkey’s borders. Practical operational considerations:

Goods Flow: Goods entering the FTZ from abroad: no customs duties, no VAT — the goods are outside Turkish customs territory. Goods entering the FTZ from the Turkish domestic market: treated as an export — VAT is zero-rated, and the seller receives a customs exit certificate. Goods leaving the FTZ to the Turkish domestic market: treated as an import — standard customs duties and VAT apply as if the goods were imported from abroad. Goods leaving the FTZ to foreign countries: direct export — no Turkish customs involvement. This creates powerful logistics strategies: a company can import raw materials into the FTZ duty-free, process them into finished goods, and export them without ever paying Turkish customs duties. Only goods sold to the domestic Turkish market trigger duty and VAT obligations. Labor Regulations: Turkish labor law applies fully within FTZs — there is no labor law exemption. Minimum wage, severance pay, social security, and all employee protections are identical to the rest of Turkey. However, for manufacturing companies with pre-2009 licenses, employee income tax withholding may be exempt — a significant cost advantage for labor-intensive operations. Lease Costs: FTZ space is typically more expensive than comparable industrial space outside the zone — reflecting the premium for customs-free operation. Typical rates: $5-20/sqm/month for warehouse/factory space, $15-40/sqm/month for office space. These costs must be factored into the ROI calculation alongside the tax savings.

Sanctions Compliance: Navigating a Complex Landscape

Turkey’s sanctions compliance environment is uniquely complex due to the country’s position at the intersection of multiple sanctions regimes:

Turkish Sanctions Framework: Turkey implements UN Security Council sanctions through domestic legislation and MASAK maintains a national sanctions list. However, Turkey has NOT adopted all EU or US autonomous sanctions — creating situations where transactions legal under Turkish law may violate EU or US sanctions (and vice versa). Practical Implications for Businesses: Turkish companies exporting to or importing from sanctioned countries (Russia, Iran, Syria, North Korea): must comply with Turkish/UN sanctions, should assess exposure to EU/US secondary sanctions (particularly if using EUR/USD payments through international banking channels), and may face correspondent bank due diligence — international banks may delay or refuse transactions involving Turkish entities in certain sanctions-adjacent trade corridors. Compliance Recommendations: Implement automated sanctions screening covering: UN Consolidated List, Turkish national list (MASAK), and for commercial prudence, EU Consolidated List and US OFAC SDN List. Screen all parties: buyers, sellers, intermediaries, shipping agents, banks, and beneficial owners. Maintain a compliance manual documenting: screening procedures, escalation protocols, and decision records. For companies operating in Turkey with international trade exposure, a dedicated sanctions compliance function is increasingly necessary.

Digital Trade and E-Commerce Cross-Border Regulations

Turkey’s cross-border e-commerce framework has evolved significantly with the growth of digital trade:

Individual Import Exemptions: Personal imports by Turkish consumers are exempt from customs duties up to 150 EUR per shipment. Goods above this threshold are subject to: customs duty (rate depends on HS classification), VAT at 20%, and processing fees. The threshold was increased from 22 EUR in 2023 following EU alignment discussions. Platform Obligations: Foreign e-commerce platforms targeting Turkish consumers must: register with the ETBİS (E-Ticaret Bilgi Sistemi) system, comply with Turkish consumer protection rules including the 14-day right of withdrawal (cayma hakkı), provide Turkish-language product information and customer service, and for “large platforms” exceeding 100,000 annual transactions targeting Turkey, appoint a Turkish legal representative and localize data storage. Turkish E-Commerce Exports: Turkey has developed specific support for e-commerce exporters: micro export regime (mikro ihracat): exports up to $15,000 per shipment and $300,000 annual total can use simplified customs declarations through licensed postal/cargo operators. Eximbank e-commerce credit: dedicated financing for e-commerce exporters. ETBİS export registration: simplified registration for Turkish e-commerce businesses selling internationally.

Additional Trade FAQ

What are Turkey’s main export markets?

Turkey’s top export destinations (2025): Germany ($20B+), United States ($15B+), United Kingdom ($13B+), Iraq ($12B+), Italy ($11B+), France ($9B+), Spain ($9B+), Netherlands ($7B+), Israel ($7B+), and Russia ($6B+). The EU collectively accounts for approximately 40% of Turkish exports — reflecting the Customs Union advantage. For investors establishing Turkish companies, the EU Customs Union provides a unique competitive advantage: duty-free access to a 450-million consumer market that no other non-EU country enjoys at the same scope.

How do I resolve a trade dispute with a Turkish company?

Options in order of escalation: (1) Negotiation directly between the parties. (2) Mandatory mediation (arabuluculuk) — required before filing commercial lawsuits since 2019. The mediator is selected from the Ministry of Justice registry. Process: 3-4 weeks. Settlement rate: approximately 65%. (3) Arbitration — ISTAC (Istanbul), ICC, or LMAA (for maritime). Faster than courts (6-12 months), confidential, and internationally enforceable under the New York Convention. (4) Turkish Commercial Courts (Asliye Ticaret Mahkemesi) — for disputes where no arbitration clause exists. Timeline: 12-24 months first instance, plus appeals.

For businesses establishing import-export operations in Turkey, combining the EU Customs Union advantage with free trade zone benefits and government export incentives creates a powerful competitive position. Our firm assists with: company formation optimized for trade operations, FTZ operating license applications, investment incentive certificate procurement, customs compliance programs, and sanctions screening framework implementation. Contact us at +90 545 199 25 25 for a consultation on structuring your Turkish trade operations.

Turkey’s strategic position as a bridge between European, Asian, and Middle Eastern markets — combined with its EU Customs Union membership, 25+ free trade agreements, and competitive manufacturing cost base — makes it one of the most attractive jurisdictions for international trade operations. The country exports over $250 billion annually across automotive, textiles, steel, machinery, and agricultural sectors.