1. TURKEY Rules of Origin REPUBLİC OF TURKEY
MINISTRY OF CUSTOMS AND TRADE
Directorate General of EU and External Relations
TURKEY
Rules of Origin
Muzaffer KÜÇÜK EU Expert

2. RULES OF ORIGIN IN GENERAL
Trade Preferential System among the member states of the OIC (TPS-OIC) is one of the most important projects of the COMCEC to foster intra-OIC trade.
The System was constructed on three pillars which are the Framework Agreement, the Protocol on Preferential Tariff Scheme (named PRETAS) and the Rules of Origin.

3. Originating in TURKEY ORIGIN = ECONOMIC NATIONALITY OF THE GOODS
vegetable products grown and harvested in Turkey
- live animals born and raised in Turkey
- mineral products extracted from the soil or seabed in the Turkey
Originating in TURKEY
Trade Preferential System among the member states of the OIC (TPS-OIC) is one of the most important projects of the COMCEC to foster intra-OIC trade.
The System was constructed on three pillars which are the Framework Agreement, the Protocol on Preferential Tariff Scheme (named PRETAS) and the Rules of Origin.

4. Why do we need the concept of origin?
Calculation of customs duties while importing the goods
- Implementation of trade policy measures (surveillance and safeguard measures, quotas, anti-dumping duties etc.)
- Statistical data for External Trade

5. TURKEY Country of export is not always the country of origin!
EUROPEAN UNION
COUNTRY OF ORIGIN
SWITZERLAND
COUNTRY OF EXPORT
Goods produced and originating in EU are exported to Switzerland and then reexported to Turkey. Even if the country of export is Switzerland, the origin of the goods is still the EU.
When a good/material is imported from third countries by paying customs duties, which refer to free circulation of the good, it does not mean that the good will gain originating status directly.
Change of tariff heading of the material which is on the free circulation and used in the production of the good exported, does not always provide originating status.
TURKEY

6. TURKISH LEGISLATION ON THE RULES OF ORIGIN

7. surveillance and safeguard measures, quotas, anti-dumping duties etc
NON-PREFERENTIAL RULES OF ORIGIN
PREFERENTIAL RULES OF ORIGIN
surveillance and safeguard measures, quotas, anti-dumping duties etc
Certificate of Origin
Customs Law and Regulation
Reduction or exemption
from customs duties
EUR.1-EUR-MED Movement
Certificate, Invoice
Declaration, EUR-MED Invoice
Declaration Form A and
Origin Declaration
Protocol on Rules of Origin
Annex to FTA’s.
Article 22 in the Customs Law
Regulations related to
Protocols on Rules of Origin.
Council of
Ministers’ Decisions for GSP and Kosova
There are two main pillars in Turkish legislation on the rules of origin; preferential and non-preferntial.
Nnon-preferential rules of origin are appllied for the trade policy measures, the necessary document is the certificate of origin annexed to our customs regulation. ALL non-preferential rules of origin inclluded in our customs law and the implementing provisions of the law.
The main part of origin legislation is on the preferentail one. Because we are talking about preferential trade and reduction and exemption from customs duties.

8. ULTIMATE OBJECTIVE: CUSTOMS UNION
TURKEY-EU CUSTOMS UNION
ANKARA AGREEMENT
12 SEPTEMBER 1963
ULTIMATE OBJECTIVE: CUSTOMS UNION
PREPARATORY PERIOD ( )
TRANSITIONAL PERIOD ( )
(Additional Protocol – 13 November 1970)
FINAL PERIOD (31 December 1995-…)
(Decision No. 1/95 of Turkey-EU Association Council – 6 March 1995)
There is no provision on the preferential rules of origin in our customs law and regulation other than Article 22.

9. TURKEY-EU CUSTOMS UNION
MAIN PROVISIONS OF TURKEY-EU CUSTOMS UNION
Trading of goods between EU and Turkey without any customs duties and quotas
Common external tariffs on imports from third countries (Community Common Customs Tariff)
Basic principle Free Movement of Goods
TR-EU Customs Union covers;
industrial goods and processed agricultural goods
For agricultural goods;
Preferential trade regime based on rules of origin.
Decision No.1/98 of Turkey-EU Association Council.
For European Coal and Steel Community goods;
ECSC- Turkey Free Trade Agreement of 1996 has been in force.
There is no provision on the preferential rules of origin in our customs law and regulation other than Article 22.

10. TURKEY-EU CUSTOMS UNION
WHICH GOODS ARE CONSIDERED TO BE IN FREE CIRCULATION?
Goods completely obtained or produced in the Community or in Turkey.
Goods coming from third countries if;
-the import formalities are completed,
- if customs duties are collected in Turkey or in Community,
-if the goods in question have not benefited from a total or partial
reimbursement of duties or charges
There is no provision on the preferential rules of origin in our customs law and regulation other than Article 22.

11. CUSTOMS UNION + TURKEY-EU CUSTOMS UNION
The framework of customs union established in 1996 goes far beyond
the classical concept of a customs union.
Alignment to common commercial policy (preferential trade agreements of EU and GSP) (Article 16)
Alignment of Customs Provisions (Article 28)
Approximation of Laws (in the area of intellectual property rights and competition, public procurements, indirect and direct taxes)
Turkey signed 19 Free Trade Agreements in parallel to EU’s FTAs.
(EFTA, Israel, Macedonia, Croatia, Bosnia and Herzegovina, Palestine,
Tunisia, Morooca, Sryia, Egypt, Albania, Georgia, Montenegro, Serbia,
Chile, Jordan, Lebonan, Mauritius ve South Korea)
Turkey’s GSP system has been in harmony with EU’s system since 2004
Article 28 of Customs Union Decision
(Turkey shall align its customs legislation with Community Customs
Code and Community system of relief from Customs Duties
Turkish Customs Law was prepared in line with CCC and published in
2000.
With the amendment of 2009, Turkish Customs Law is harmonized with
Council Regulation 648/2005 (safety and security regulations; risk
management, electronic pre-arrival and pre-departure declarations and AEOs)
A new Draft Customs Law is in the process of preparation which is
compatible with Union Customs Code of EU.

12. EU-TURKEY PREFERENTIAL TRADE
Industrial products and processed agricultural products
Agricultural products
Coal and steel products
Decision No. 1/95 of Association Council
Decision No. 1/98 of Association Council
FTA of 1996
Free Movement
(not based on rules of origin)
Based on preferential rules of origin
A.TR Movement Certificate
EUR.1 and EUR-MED Movement Certificates
Turkey signed 19 Free Trade Agreements in parallel to EU’s FTAs.
(EFTA, Israel, Macedonia, Croatia, Bosnia and Herzegovina, Palestine,
Tunisia, Morooca, Sryia, Egypt, Albania, Georgia, Montenegro, Serbia,
Chile, Jordan, Lebonan, Mauritius ve South Korea)
Turkey’s GSP system has been in harmony with EU’s system since 2004
Article 28 of Customs Union Decision
(Turkey shall align its customs legislation with Community Customs
Code and Community system of relief from Customs Duties
Turkish Customs Law was prepared in line with CCC and published in
2000.
With the amendment of 2009, Turkish Customs Law is harmonized with
Council Regulation 648/2005 (safety and security regulations; risk
management, electronic pre-arrival and pre-departure declarations and AEOs)
A new Draft Customs Law is in the process of preparation which is
compatible with Union Customs Code of EU.

13. INTERNATIONAL ARRANGEMENTS ON PREFERENTIAL RULES OF ORIGIN
Mutual Concessions
Free Trade Agreements
Preferential Trade Agreements
Decision No 1/98 on the preferential trade of Agricultural Products with EU
Unilateral Concessions
- Generalised System of Preferences(GSP)
-Kosova

14. OUR FTA PARTNERS
EFTA Countries (Iceland, Norway, Switzerland & Liechteinstein)
Israel
EU (ECSC and agriculture)
Macedonia
Bosnia-Herzegovina
Morocco
Palestine
Tunisia
Syria (suspended)
Egypt
Georgia
Albania
Montenegro
Serbia
Jordan
Chile
S. Korea
Mauritius
Lebanon, Malaysia(signed, not entered into force yet)
Moldova, Ghana (initialed)

15. OUR PTAs IRAN (entered into force as of 1st January 2015)
ECOTA (to be entered into force)
TPS-OIC(to be entered into force)
D-8(to be entered into force)
Bangladesh (ongoing)

16. ONGOING FTA NEGOTIATIONS
Mexico
Singapore
Peru
Japan
Ukraine
Colombia
Ecuador
Faroe Islands
Cameroon
Congo D.R
Seychelles
Mercosur
Gulf Cooperation Council

17. TURKISH LEGISLATON ON PREFERENTIAL RULES OF ORIGIN
THERE ARE 7 REGULATIONS AND 2 COUNCIL OF MINISTERS’ DECISION AND 1 COMMUNIQUE RELATED TO PREFERENTIAL RULES OF ORIGIN IN OUR LEGISLATION

18. TURKISH LEGISLATON ON PREFERENTIAL RULES OF ORIGIN
REGULATION ABOUT BILATERAL CUMULATION ON PREFERENTIAL TRADE SYSTEM(GEORGIA and PALESTINE)
REGULATION ON PAN-EURO-MED PREFERENTIAL RULES OF ORIGIN(EU, EFTA, EGYPT, MOROCCO, TUNISIA, ISRAEL, SYRIA, JORDAN)
REGULATION ON THE WESTERN BALKANS PREFERENTIAL RULES OF ORIGIN (EU, MACEDONIA, MONTENEGRO, SERBIA, ALBANIA, BOSNIA-HERSEGOVINA)

19. 4) REGULATION ON THE BILATERAL CUMULATION WITH CHILE
TURKISH LEGISLATON ON PREFERENTIAL RULES OF ORIGIN
4) REGULATION ON THE BILATERAL CUMULATION WITH CHILE
5) REGULATION ON THE PREFERENTIAL RULES OF ORIGIN WITHIN THE CONTEXT OF TURKEY-S.KOREA FTA 6) REGULATION ON THE PREFERENTIAL RULES OF ORIGIN WITHIN THE CONTEXT OF TURKEY-MAURITIUS FTA

20. TURKISH LEGISLATON ON PREFERENTIAL RULES OF ORIGIN
7) THE COUNCIL OF MINISTERS’ DECISION ON GSP RULES OF ORIGIN
8) COMMUNIQUE ON THE LIST OF BENEFICIARY COUNTRIES TO WHICH GSP SCHEME WILL APPLY
9) REGULATION ON THE IMPLEMENTATION OF THE BILATERAL CUMULATION UNDER GSP 10) THE COUNCIL OF MINISTERS DECISION ON THE GOODS TO WHICH PREFERENTIAL TARIFF MEASURES ADOPTED UNILATERALLY (Kosova)
11) REGULATION ON THE PREFERENTIAL RULES OF ORIGIN WITHIN THE CONTEXT OF TURKEY-IRAN PTA (TO BE ENTERED INTO FORCE SOON)

21. -BILATERAL CUMULATION
CUMULATION OF ORIGIN
-BILATERAL CUMULATION
-DIAGONAL CUMULATION
Cumulation allows products that have obtained originating
status in one partner country to be further processed or added
to products originating in another participating country as if
they had originated in that latter country, without the
finished product losing the benefit of preferential customs
tariffs. It can only be applied between countries operating
with identical origin rules.
 The working or processing carried out in each partner
country on originating products does not have to be
’sufficient working or processing’ as set out in the list
rules.

22. Bilateral Cumulation S.KOREA TURKEY SHIRT EUR.1 FABRIC EUR-1
Bilateral cumulation operates between two countries where a free trade agreement or autonomous arrangement contains a provision allowing them to cumulate origin. This is the basic type of cumulation and is common to all origin arrangements
For Example:
Turkey-S.Korea Free Trade Agreement

23. PAN-EURO-MED(PEM) SYSTEM
Diagonal Cumulation
Pan-Euro Countries
European Union
Turkey
EFTA Countries
PAN-EURO-MED(PEM) SYSTEM
Mediterranean Countries
Egypt*
Syria*
Palestine
Jordan *
Morocco*
Lebanon
Tunisia*
Algeria
Israel*
And
Faroe Islands

24. EUR.1 Movement Certificate EUR-MED Movement Certificate
PROOFS OF ORIGIN ON PEM SYSTEM
EUR.1 Movement Certificate
EUR-MED Movement Certificate
Invoice Declaration
EUR-MED Invoice Declaration
Cumulation allows products that have obtained originating
status in one partner country to be further processed or added
to products originating in another participating country as if
they had originated in that latter country, without the
finished product losing the benefit of preferential customs
tariffs. It can only be applied between countries operating
with identical origin rules.
 The working or processing carried out in each partner
country on originating products does not have to be
’sufficient working or processing’ as set out in the list
rules.

25. What is the difference between EUR.1 and EUR-MED?
PAN-EURO SYSTEM;
Same rules of origin for all parties. (NO drawback rule)
Existence of FTAs between all parties
2. PAN-EURO-MED SYSTEM;
Diffrent rules on bilateral trade. (Implementation of drawback rule on bilateral trade)
Non-existence of FTAs between all the Parties.

26. (Pan-Euro-Med Preferential Rules of Origin)
Diagonal Cumulation
SWITZERLAND
TURKEY
EFTA
EGYPT
(Pan-Euro-Med Preferential Rules of Origin)
EUR.MED
Shirt
Diagonal cumulation operates between more than two
countries provided they have Free Trade Agreements
containing identical origin rules and provision for
cumulation between them. As with bilateral cumulation,
only originating products or materials can benefit from
diagonal cumulation.
For Example:
Pan-Euro-Mediterranean Cumulation Zone
TURKEY
Fabric
EUR.MED
EGYPT

27. VARIABLE GEOMETRY
EUR.MED
Fabric
EUR.MED
Shirt
MOROCCO EU
TURKEY
The shirt can not be exported to Syria with a proof of origin under Syria-Turkey
in the slide, there is a full network of FTA between the partner countries except Syria.
Syria only has FTA with Tunisia.
Each country states the country with which the cumulation is applicable.
Since Syria has not an agreement with the countries of cumulation except Tunisia, it is not possible to re-export goods from Tunisia to Syria on cumulation basis.
SYRIA

28. WESTERN BALKAN SYSTEM (SAP CUMULATION)
Diagonal Cumulation
WESTERN BALKAN SYSTEM (SAP CUMULATION)
European Union
Turkey
Macedonia
Albania
Bosnia-Herzegovina
Serbia
Montenegro
Efta countries not included. Moreover, Turkey is included as for the goods covered by the customs union.Therefore, ECSC AND AGRİCULTURAL PRODUCTS are out ıf the scope of this system in the context of trade between Turkey and the EU. Eur-1+invoice declaration

29. (Pan-Euro-Med Preferential Rules of Origin)
Diagonal Cumulation (Western Balkans)
MACEDONIA
TURKEY
ALBANIA
MACEDONIA
(Pan-Euro-Med Preferential Rules of Origin)
Shirt
EUR.1
TURKEY
Fabric
EUR.1
Diagonal cumulation operates between more than two
countries provided they have Free Trade Agreements
containing identical origin rules and provision for
cumulation between them. As with bilateral cumulation,
only originating products or materials can benefit from
diagonal cumulation.
ALBANIA

30. REGIONAL CONVENTION ON PAN-EURO-MEDITERRANEAN
PREFERENTIAL RULES OF ORIGIN
Western Balkans cumulation – TR, EU, Western Balkan partners
PEM cumulation
- 16 parties:
EU, TR, Faroe Islands, EFTA
States, Mediterranean
Countries
More than 60 Free Trade Agreements (FTA) between these partners
• Each containing a Protocol setting identical rules of origin
• Modifying rules of origin requires changing all the Protocols

31. REGIONAL CONVENTION ON PAN-EURO-MEDITERRANEAN
PREFERENTIAL RULES OF ORIGIN
The PEM Convention:
A single text
on RoO, which
replaces each Protocol
in each FTA
diagonal cumulation of origin on a single legal
instrument. No more separate protocols on RoO.
easier revision and update of RoO.
entire Western Balkan region into in the panEuro-Mediterranean zone of diagonal cumulation.
accession of neighbouring countries in the panEuro-Mediterraneancumulation zone.
extended opportunities for cumulation

32. Preconditions to Benefit from Preferential Regime
Being within the scope of the Agreement,
Being originating within the framework of rules
defined by the Agreement
Having a valid proof of origin showing
originating status of the good,
Being directly transported of the good
from the Contracting Party.
Efta countries not included. Moreover, Turkey is included as for the goods covered by the customs union.Therefore, ECSC AND AGRİCULTURAL PRODUCTS are out ıf the scope of this system in the context of trade between Turkey and the EU. Eur-1+invoice declaration

33. Products wholly obtained in Turkey:
WHOLLY OBTAINED PRODUCTS
Products wholly obtained in Turkey:
- Mineral Products
extracted from their soil
or from their seabed
- Vegetable Products
harvested therein
- Live animals born
and raised therein
UNDER ANY legislation in the world, without any doubt, these goods are originating in Turkey.

34. 2. Using materials that have originating
How is the originating status of the good determined when using non- Turkish originating materials ?
1. Using materials that have originating status of Contracting Party in the production of the good
2. Using materials that have originating
status of third country in the production of
the good
UNDER ANY legislation in the world, without any doubt, these goods are originating in Turkey.

35. Bilateral Cumulation: Turkey-Chile FTA (only Turkey and Chile)
Contracting/Non-Contracting Parties?
Bilateral Cumulation: Turkey-Chile FTA (only Turkey and Chile)
Diagonal Cumulation: Pan-Euro-Med
Preferential Rules of Origin (Ex. Turkey-EU-Egypt)
Non-contracting Party: all other 3rd countries excluded from the Cumulation
UNDER ANY legislation in the world, without any doubt, these goods are originating in Turkey.

36. If only the materials originating in the contracting parties are used in the production
Is working or processing made in Turkey beyond insufficient working and processings? Y
Originating in Turkey N
Is value added in Turkey the highest one compared to the value of the materials originating in each of the contracting parties?
UNDER ANY legislation in the world, without any doubt, these goods are originating in Turkey. Y N
Originating in the country materials of which have the highest value in the final product
originating in Turkey

37. Insufficient Workings or Processings
- preserving operations to ensure that the products remain in good condition during transport and storage;
- breaking-up and assembly of packages;
- washing, cleaning; removal of dust, oxide, oil, paint or other coverings;
- ironing or pressing of textiles;
- simple painting and polishing operations;
- sharpening, simple grinding or simple cutting;
- simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations;
- affixing or printing marks, labels, logos and other like distinguishing signs on products or their packaging;
- simple mixing of products, whether or not of different kinds,
- slaughter of animals.
So, what are the insufficient workings or processings? They are stipulated in Article 7 of our Origin Protocols. Here also you can see the major workings or processings that can not be considered as conferring the originating status.

38. If the materials originating in a third country
used in the production
If the materials originating in a 3rd country satisfy working or processings stipulated in Annex II to Protocols on Rules of Origin of FTA’s? (sufficiently worked or processed) Y
Originating in Turkey N
The final products can not be exported from Turkey to the contracting party under FTA.
Products obtained by non-originating materials should be sufficiently worked or processed in one party.
The goods can not acquire originating status

39. ANNEX II (List Rules) Alternative rule
HS heading
Description of product
Working or processing, carried out on non-originating materials, which
confers originating status
(1)
(2)
(3) or (4)
Chapter 2
Meat and edible meat offal
Manufacture in which all the
materials of Chapters 1 and 2 used
are wholly obtained
4407
Wood sawn or chipped lengthwise,
sliced or peeled, of a thickness
exceeding 6 mm, planed, sanded or
end-jointed
8411
TurbojTurbo-jets, turbo-propellers and
other gas turbines etler,
Manufacture:
- from materials of any heading,
except that of the product, and
- in which the value of all the
materials used does not exceed
40 % of the ex-works price of the
product
Planing, sanding or end-jointing
Alternative rule
Manufacture in which the value of
all the materials used does not
exceed 25 % of the ex-works price
of the product
- Üçüncü ülke menşeli girdi kullanılmıyor ise
EK II – Liste Kurallarına bakmaya gerek yok
- Üçüncü ülke menşeli girdi kullanılıyor ise
EK II – Liste Kurallarının MUTLAKA karşılanması gerekli
Ex-works price means the price paid
for the product ex-works to the
manufacturer in whose undertaking the
last working or processing is carried
out, provided the price includes the
value of all materials used, minus any
internal taxes, which are or may be
repaid when the product is exported

40. Ex-Works/Ex-Factory Price-Factory Gate Price
Originating materials (proof of origin by
suppliers declaration or own bookkeeping)
- Non originating materials (the customs
value at the time of importation)
- Wages (Labour costs)
- Profits
- Overheads (e.g. administrative, selling, marketing expenses)
- Costs regarding the IPR’s
Ex-works price includes

41. Ex-Works/Ex-Factory Price-Factory Gate Price
Ex-works price does not include;
Internal taxes (repaid when the end-product is exported)
- Costs of transporting the end-product to the customer
I mean it does not include expenses incurred once the goods leave the factory. That’s why invoice prices that are quoted FOB or CIF are not true ex-works prices.

42. THANKS FOR YOUR ATTENTION +90 312 449 28 24 m.kucuk@gtb.gov.tr