As parliament reconvenes, reforms will top its agenda. Next on the docket: Customs penalties
In its June 2015-June 2016 action plan, the Foreign Trade and Customs Technical Committee of the Coordination Board for Improving the Investment Environment recommended a study assessing fines in the Customs Code according to current economic conditions. Now, the AK Party has prepared a 20-item law proposal which it has presented to the Speaker’s office of the Parliament. The proposal for the amendment of the Customs Law No. 4458 is expected to be on the top of the agenda when Parliament reconvenes in October.
After the new law enters into force, penalties that will be applied to those who violate customs legislation will be reduced if they apply before being detected by the administration. Currently, 20 percent of the tax that could be accrued in order to collect the taxes arising from the customs procedures was taken as a collateral. The proposal removes the extra 20 percent tax bracket. The application period of reconciliation for customs penalties is also being extended.
With the enactment of the law proposal, in case of discrepancies later found in the declaration, an administrative fine of half of the tax difference shall be imposed. If the declaration is corrected before the customs authorities determine the contradictions, the rate of penalties will be reduced from 15 percent to 10 percent.
In case goods that are not in free circulation and which were brought to the Turkish Customs Region, subject to the transit regime to be shipped by road to the customs authorities, are determined to be significantly different from what was declared, legal action will be taken according. For instance:
- If the total amount of customs duties of the goods exceeds the total of the declared goods, an administrative fine will be charged twice as much as the customs duties on different goods.
- If the import of the good is subject to a license, condition, permit, restriction or a certificate of conformity or adequacy by certain organizations, double the customs value of the good will be imposed as a fine.
- If the declaration is found to be incomplete according to the declaration, the customs duties on the goods will be taken and an administrative fine twice the customs duties will be applied.
- If it is determined that the amount is more than the declaration, an administrative fine as much as the customs duties of the excess goods will be applied and the excess goods will be subject to liquidation.