Country Presentation Statistics Turkey Item 11: Coverage and time of - - PDF document

UNITED NATIONS DEPARTMENT OF ECONOMIC AND SOCIAL AFFAIRS STATISTICS DIVISION

ESA/STAT/AC.142.19

UNITED NATIONS ECONOMIC COMMISSION FOR AFRICA

International Workshop on Country Practices in Compilation of International Merchandise Trade Statistics, 12-16 November 2007, Addis Ababa

Country Presentation Statistics Turkey Item 11: Coverage and time of recording

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Prime Ministry Republic of Turkey Turkish Statistical Institute

External Trade Statistics Team

Inward and Outward Processing in Turkey

by Bülent TUNGUL

MEDSTAT II - Workshop in Addis Ababa: Country Practices in Compilation of International Merchandise Trade Statistics 12-16 November 2007

13/10/2007 2

Prime Ministry Republic of Turkey Turkish Statistical Institute

External Trade Statistics Team

Outline

Introduction Customs Procedure Codes (CPCs) Statistical Procedure Codes (SPCs) Nature of Transaction Inward Procedure (IPR) Outward Procedure (OPR) Encountered Problems

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Prime Ministry Republic of Turkey Turkish Statistical Institute

External Trade Statistics Team

Introduction

Turkey joined the Customs Union with the EU in 1996. Customs practices are harmonized with EU. Turkey is member of a number of international conventions, such as the revised Kyoto Convention, the Convention on Harmonised System Customs in Turkey has a comprehensive computer system, BILGE, in place for customs control and trade facilitation. This system into a web-based

• technology. EDI system is used more comman. 99% of declaration are

electronic. TURKSTAT is responsible for producing and dissemination of external trade statistics Special trade system (Relaxed definitation)

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Prime Ministry Republic of Turkey Turkish Statistical Institute

External Trade Statistics Team

Customs Procedure Codes

(CPC)

The Customs Procedure Codes (CPCs)

identify the customs and/or excise regimes to which goods are being entered and from which they have been removed (where this applies).

The CPC is completed at export as well as

import.

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Prime Ministry Republic of Turkey Turkish Statistical Institute

External Trade Statistics Team

Main Customs Procedures

1) Release for free Circulation (Importation) 2) Transit 3) Customs Warehousing 4) Inward Processing 5) Processing under customs control 6) Temporary Admission 7) Outward Processing 8) Export

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Prime Ministry Republic of Turkey Turkish Statistical Institute

External Trade Statistics Team

Statistical Procedure Codes

(SPC)

SPC Exports Imports

Exclusion Exclusion

1

Normal Normal

3

for outward processing after outward processing

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after inward processing, suspension system for inward processing, suspension system

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after inward processing, drawback system for inward processing, drawback system

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for economic outward processing for textiles after economic outward processing for textiles

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Prime Ministry Republic of Turkey Turkish Statistical Institute

External Trade Statistics Team

Nature of Transaction

Nature of transaction codes are useful mainly

for adjusting data for BOP and National Accounts purposes, to exclude certain movements and for data checking (e.g. processing)

Operations following repair and maintenance against payment 52 Operations following processing under contract 51 Operations with a view to repair and maintenance against payment 42 Operations with a view to processing under contract 41

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Prime Ministry Republic of Turkey Turkish Statistical Institute

External Trade Statistics Team

Responsible Bodies in Turkey

Under Secretariat for Customs Under Secretariat for Foreign Trade General Secretariats of Exporters Union TURKSTAT

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Prime Ministry Republic of Turkey Turkish Statistical Institute

External Trade Statistics Team

Inward Processing

The inward processing procedure makes it possible to import goods temporarily so that they can be processed (assembling, manufacturing, transforming) or repair) and then to export the resulting compensating products, while benefiting from an exemption from import duties or taxes which would be carried out under the trade policy normally applicable to imported goods. The aim of the Inward Processing regime is to enable exporters to supply raw materials, intermediate unfinished goods for the production

• f their exports without being subject to customs duties, including VAT.

The customs duties or other relevant charges are not applied when the goods are exported to a third country. Goods that are not to be evaluated in accordance with this regime are animals, fishes, goods causing environmental pollution. Period of Authorization is at most 12 months in respect of sectors. In some exceptional cases, it can be more than 12 months.

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Prime Ministry Republic of Turkey Turkish Statistical Institute

External Trade Statistics Team

Inward Processing

Inward processing can be classified by two main types of systems The Suspension System

Equivalent goods

The Drawback System

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Prime Ministry Republic of Turkey Turkish Statistical Institute

External Trade Statistics Team

Procedure of Inward Processing

Foreign Goods Foreign Goods Value Added Imports duties

Foreign Country or Free Zone National Market Turkey Customs Territory

• thers

taxes * Two options: 1.- duty free in entry (suspension sys.) 2.- reimbursement in exit (drawback sys.)

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Prime Ministry Republic of Turkey Turkish Statistical Institute

External Trade Statistics Team

Inward Processing

Data are available separately on: Imports for inward processing (suspension system) Imports for inward processing (drawback system) Exports after inward processing (suspension system). Exports after inward processing (drawback system)

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Prime Ministry Republic of Turkey Turkish Statistical Institute

External Trade Statistics Team

Outward Processing

Outward processing makes it possible to export goods temporarily for processing and to import the compensating products with a full or partial exemption from duties and levies.

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Prime Ministry Republic of Turkey Turkish Statistical Institute

External Trade Statistics Team

Procedure of Outward Processing

Turkey Customs Territory

Goods in free circulation Goods Value Added

Foreign Country or Free Zone

Partial Imports duties Partial

• thers

taxes

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Prime Ministry Republic of Turkey Turkish Statistical Institute

External Trade Statistics Team

Outward Processing

Data are available separately on: Exports for outward processing Exports for outward processing for textiles Imports after outward processing Imports after outward processing for textiles

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Prime Ministry Republic of Turkey Turkish Statistical Institute

External Trade Statistics Team

Share of Customs Procedure Codes in Turkey's Exports - 2006

51% 45% 3% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 10% 20% 30% 40% 50% 60% 3151 1000 1040 2100 1042 3153 2151 1072 1073 1091 2123 3141 3152 2153 Customs Procedure Codes Share (%) Share (%) Share of Customs Procedure Codes in Turkey's Imports - 2006 68% 17% 12% 2% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80%

4000 4071 5100 5171 5300 4010 4053 6121 6321 6771 5121 9100 9171 4100 5271 5123 5200 4171

Customs Procedure Codes Share (%)

Chart-1 Chart-2

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Prime Ministry Republic of Turkey Turkish Statistical Institute

External Trade Statistics Team

Trade by SPCs

Value: M$ SPC Exports Share% Imports Share% Difference 0 Exluding 1,804 2.1 21,171 13.2 1 Normal 41,415 47.4 120,594 75.0 3 Outward PR 563 0.6 183 0.1

380

5 Inward PR (Suspension) 43,557 49.9 18,799 11.7

24,758

6 Inward PR (DrawBack) 0.0 1 0.0 7 Economic Outward for textiles 0.0 Total 87,339 100.0 160,747 100.0

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Prime Ministry Republic of Turkey Turkish Statistical Institute

External Trade Statistics Team

Encountered Problems

Statistical value is not always gross value Errors in the nature of transaction codes Goods for processing for BOP definition not recorded separately How can ownership of the goods be recorded?

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Prime Ministry Republic of Turkey Turkish Statistical Institute

External Trade Statistics Team

Thank you for your attention!