Customs, tax & compliance
Anti-dumping and countervailing duty AD
An extra duty a country imposes on imports sold below the exporter’s home-market price (dumping) or supported by state subsidies, where these injure domestic producers. After an investigation, rates are set for specific origin countries and even individual companies; they are very common for raw materials such as steel, aluminium, PET, PVC, chemicals and fibres. Rates can exceed 100 %, so measures in force for the HS code and origin must always be checked when planning imports, and misdeclaring origin through transshipment brings severe penalties.
Bonded warehouse
A customs-controlled facility where imported goods can be stored for a long or unlimited time without paying duties. While in bond, goods can be resold to another country (transit trade), released into free circulation in instalments, or sampled; duties are paid only on the quantity withdrawn. Raw material distributors use bonded warehouses widely to hold stock while protecting cash flow and delivering quickly.
Carbon Border Adjustment Mechanism (CBAM)
The European Union’s mechanism that charges imports of iron and steel, aluminium, cement, fertilisers, hydrogen and electricity for the carbon emissions embedded in their production, at a price linked to the EU ETS. The 2023–2025 transitional phase required reporting only; from 2026 authorised declarants must buy CBAM certificates. Suppliers selling these products into the EU now need verified installation-level emissions data to stay competitive.
Certificate of origin and preferential origin proofs (EUR.1, A.TR, Form A) C/O
A document showing the country in which goods were produced or obtained, usually certified by a chamber of commerce. Non-preferential certificates serve anti-dumping, quota and import-ban rules; preferential proofs give reduced or zero duty under free trade agreements – the A.TR movement certificate for industrial goods between the EU and Türkiye, EUR.1 or an origin declaration on the invoice where origin rules are met, Form D in ASEAN, Form E under China’s agreements, and so on. Origin rules vary by product, and false documents bring large duty differences and penalties.
Commercial invoice
The final sales document issued by the seller after shipment, stating the description of goods, HS code, quantity, unit and total price, Incoterm, payment terms, origin and the parties’ details. It is the basis for customs valuation, duties and letter-of-credit payment; under a credit the description of goods must match the credit exactly. Unlike a proforma invoice, it records the actual sale and the amount due.
Customs broker
A licensed specialist who prepares customs declarations on behalf of importers and exporters, declares the classification (HS code), value and origin of goods, calculates duties and deals with the customs authorities. In many countries brokers are licensed by the customs administration and share responsibility for the accuracy of declarations. A good broker saves money through regimes such as inward processing, bonded warehousing, preferential origin and anti-dumping planning.
Customs valuation (transaction value)
The value on which duty is calculated. Under the WTO Customs Valuation Agreement the primary basis is the price actually paid or payable (transaction value). Most countries, including the EU and Türkiye, add freight and insurance up to the point of entry (CIF basis), while some, such as the USA, use a FOB basis. Commissions, royalties and buyer-supplied assists such as moulds may also be added. If under-invoicing between related parties is found, customs applies other methods and penalties.
Dual-use goods and export controls
Licensing requirements for exporting items that can serve both civilian and military purposes – certain special steels, titanium and superalloys, carbon fibre, rare earths, some chemicals and precursors. Lists and rules are set nationally on the basis of the Wassenaar Arrangement, Nuclear Suppliers Group, Australia Group and Missile Technology Control Regime (e.g. EU Regulation 2021/821, US EAR). Exporting without a licence carries criminal penalties, so the seller should request an end-user certificate.
Export declaration
The electronic declaration filed with customs by the exporter or its broker so that goods can legally leave the country, stating the description, HS code, quantity, value, consignee and destination. The closed export declaration is the official proof of export for VAT zero-rating, export incentives and foreign-exchange rules. Under EXW this duty falls on the foreign buyer, which causes practical problems – which is why FCA is usually more suitable.
HS code (Harmonized System)
The World Customs Organization’s goods classification system, used in about 200 countries. The first six digits are the same everywhere (e.g. 3902.10 polypropylene); countries add their own subdivisions – 12-digit GTİP in Türkiye, 8-digit CN and 10-digit TARIC in the EU, 10-digit HTS in the USA. The correct code determines the duty rate, import licences, anti-dumping measures, preferential origin rules and trade statistics. Misclassification can lead to back duties and penalties; where unsure, a binding tariff information (BTI) ruling can be requested.
Import duty (customs tariff)
A tax charged on imported goods on their customs value, according to the HS code and country of origin. It is usually a percentage of value (ad valorem), sometimes an amount per quantity (e.g. EUR per tonne). The rate can change with the general WTO rate (MFN), free trade agreements (zero or reduced rates), additional duties or anti-dumping measures. In landed-cost calculations it is computed on the CIF value including freight and insurance and is then added to the VAT base.
Inward processing relief (IPR)
A customs regime that lets manufacturers import raw materials used to make export products without paying duty, anti-dumping duty or import VAT (or against a guarantee). It is granted through an inward processing authorisation – in Türkiye the DİİB certificate – and the export commitment must be discharged within a set period. It is a major cost advantage for exporters sourcing raw materials at world prices.
Know your customer / know your business (KYC / KYB)
The process of verifying, before doing business, that a counterparty really exists, who its officers and ultimate beneficial owners are, and whether it is subject to sanctions or adverse media. Tools include tax and trade-registry records, signature authorisations, licences, bank references and site visits or video verification. Banks perform KYC under anti-money-laundering law; for trading parties it is the first line of defence against fraud. The platform’s “Verified company” badge is based on this kind of document check.
Packing list P/L
A document listing the contents of every package in a shipment – bag, pallet, drum, coil or container – with quantities, net and gross weights, dimensions, lot or batch numbers and container and seal numbers. It contains no prices. It is used for customs examination, warehouse receipt, damage and shortage checks and in letter-of-credit document sets; weights must be consistent with the invoice and bill of lading.
Sanctions and export-control screening
Checking whether the buyer, seller, banks, vessel and end user appear on UN, EU, US (OFAC) or UK (OFSI) sanctions lists, and whether the goods are going to sanctioned countries or prohibited uses. Banks may freeze payments that carry sanctions risk, and breaches lead to heavy fines and account closures. Because sanctions change often, screening should be repeated for every deal, watching for evasion signs such as ship renaming or switched-off AIS.
VAT (value added tax) on imports and exports
A tax on consumption. Exports are zero-rated in most countries, so the exporter can reclaim the input VAT it has paid. On imports, VAT is collected at customs on the customs value plus duty and other taxes, and a registered importer can usually deduct it, so the main impact is on cash flow. Between VAT-registered businesses in intra-EU trade the reverse-charge mechanism applies. Standard rates vary widely (e.g. 20 % in Türkiye, 19 % in Germany), and some raw materials enjoy reduced rates.