13.8.

2014

Turkey : Customs Unions and preferential arrangements - European commission

European Commission

Taxation and Customs Union

Turkey : Customs Unions and preferential

arrangements
a) General introduction
The final phase of the relations between the European Community (EC) and
Turkey under the Ankara Association Agreement 1963 was to achieve the ECTurkey Customs Union. This final phase entered into force on 31 December
1995.
The scope of this customs union, based on the status of goods in free
circulation, is however limited to industrial products and processed agricultural
products. It does not cover:
- agricultural products, as defined in Annex I of the Amsterdam Treaty;
- coal and steel products
These two categories are subject only to preferential agreements based on
their originating status.

b) Legal framework
Association and Customs Union
NOTICE: Where reference is made to general concepts such as "minimal
operations", "drawback", "bilateral cumulation", "territoriality" and
"accounting segregation", the reader should see the explanations given in
Preferential origin, General aspects of Preferential origin, under Provisions
common to most preferential arrangements.
The Ankara Agreement of 12.09.1963 (OJ L 217, 29.12.1964) and its
Additional Protocol of 23.11.1970 (OJ L 293, 29.12.1972) define the scope and
content of the association relationship, while the final phase of the customs
union is defined in Decision 1/95of the Association Council of 22.12.1995 (OJ L
35, 13.02.1996).
Decision No 1/95 implies:
free movement (elimination of customs duties and quantitative
restrictions) between the two parts of the customs union for goods
either wholly produced or put in free circulation after their importation
from third countries in either Turkey or the Union. The proof of this
customs status of 'goods in free circulation' is established by an A.TR.
movement certificate. Special conditions are laid down for processed
agricultural products;
alignment of Turkey on Community common customs tariff, including
preferential arrangements, and harmonisation of commercial policy
measures;
approximation of customs law, in particular through Decisions of the
Customs Co-operation Committee (e.g. Decision No 1/2001) and mutual
assistance in customs matters;
approximation of other laws (intellectual property, competition, taxation,
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Turkey : Customs Unions and preferential arrangements - European commission

...).
After the abrogation of Decision No 1/2001 of the EC-Turkey Customs Cooperation Committee of 28.03.2001 (OJ L 98, 7.04.2001), Decision No 1/2006
of the EC-Turkey Customs Co-operation Committee of 26.07.2006 (OJ L 265 of
26.09.2006) resets out implementing customs provisions of Decision No 1/95,
applicable to trade in goods between the two parts of the customs union and
with third countries.

Preferential agreement on agricultural products

The EC-Turkey trade agreement for agricultural products (Annex I Amsterdam
Treaty: see list of products concerned) results from Decision No 1/98 of the
Association Council of 25.02.1998 (OJ L 86 of 20.03.1998) as last amended by
Decision No 3/2006 of the EC-Turkey Association Council of 19 December
2006, amending Protocol 3 on rules of origin.
Protocol No 3 related to rules of origin is in line with the pan-EuroMediterranean Protocol.

Preferential agreement on coal and steel

The trade arrangement for coal and steel products results from an Agreement
of 25.07.1996 between Turkey and the then still existing ECSC (OJ L 227,
7.09.1996). Those products are now covered by the EC Treaty but remain
outside of the scope of the customs union. Rules of origin are laid down in its
Protocol No 1, as amended lastly by Decision No 1/2009 of the ECSC-Turkey
Joint Committee (OJ L 143, 06.06.2009).
Protocol No 1 related to rules of origin is in line with the panEuromMediterranean Protocol.

c) Customs Union and Pan-Euro-Mediterranean

Cumulation
In the context of pan-Euro-Mediterranean cumulation, it may be necessary to
determine the originating status of goods, which are in free circulation in the
Customs Union but will be exported or used in the production of products to
be exported to other countries belonging to the pan-Euro-Mediterranean
system of cumulation of origin. For that purpose, Decision No 1/2006 of the
EC-Turkey Customs Co-operation Committee of 26.07.2006 (OJ L 265,
26.09.2006) abrogates Decision No 1/1999 of the EC-Turkey Customs Cooperation Committee of 28.05.1999 (OJ L 204, 04.08.1999) and resets out
the provisions providing that a 'supplier's declaration' is furnished to the
exporter and used by him as supporting evidence to establish the proof of
origin in the context of the preferential agreements with other countries in
the pan-Euro-Mediterranean system of cumulation.
Decision No 1/2006 also abrogates Decision No 1/2000 of the EC-Turkey
Customs Co-operation Committee of 25.07.2000 (OJ L 211, 22.08.2000) and
resets out the provisions providing that goods fulfilling the condition for free
movement within the customs union but traded between the EU and Turkey
through other countries belonging to the pan-Euro-Mediterranean system of
cumulation can benefit from the customs union insofar as proofs of Community
or Turkish origin are established in one of the countries concerned.

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