DOORS TO THE WORLD, CUSTOMS

Customs; As the arenas where international human, goods and vehicle traffic take place and foreign trade takes place, it has preserved its existence and importance since ancient times, when human beings started to trade and settled and the first states emerged.

Foreign trade between countries operates on the basis of mutual interest and benefit. Countries are involved in various economic integrations and make trade agreements in order to gain maximum benefit from international trade. According to the World Trade Organization (WTO) data, there are 484 preferential trade agreements (PTAs) and 353 regional trade agreements (RTAs) signed between countries today.

According to WTO data, from 1950 to 2020, world trade increased 41 times at constant prices.[1] World trade, which fell by about 9% in 2020 with the effect of the pandemic, started to increase again in 2021 and reached 22.2 trillion dollars. The average customs tax rates (MFN) applied in the world are around 9% (10.7% on average for Turkey).[2]

[1] https://www.wto.org/english/res_e/statis_e/trade_evolution_e/evolution_trade_wto_e.htm 

[2] https://www.wto.org/english/res_e/booksp_e/world_tariff_profiles22_e.pdf

Agenda of Customs in the World

Customs; In general terms, it refers to both the taxes collected on foreign trade and the administration that carries out the customs procedures.

We can summarize the basic working agenda of the World Customs Organization (WCO), which was established in 1952 as the Customs Cooperation Council with the aim of cooperation between customs administrations in the world and compliance with high standards in customs practices, and has reached 184 members today:

• Normalization of trade after the pandemic
• Facilitating Legal Trade
• Protection of society (fighting crime and illegal trade)
• Revenue collection for the state
• Technology, innovation, R&D
• Developing new working methods
• Capacity building, structural development
• Good governance, accountability
• Green Economy, Green Customs
• Cooperation between Customs Administrations, communication.
• Public-private sector cooperation

These main topics mentioned today are also the main agenda items of customs administrations.
Customs in Turkey

Customs services carried out in the past within the body of Rusumat Trust, Ministry of Customs and Monopoly, Ministry of Finance and Customs, Undersecretariat of Customs, Ministry of Customs and Trade; With the Presidential Decree No. 1 published on 10.07.2018, the Ministry of Economy and the Ministry of Customs and Trade were merged into the Ministry of Commerce.

Thus, it is aimed to increase efficiency and competitiveness and to solve problems quickly by bringing together policy-making, decision-making and implementing units in the domestic and foreign trade of our country in the same Ministry structure. However, despite the intervening 4 years, the bilateral structure consisting of customs and foreign trade has not disappeared and a full integration has not been achieved yet.
Although our customs gates, which have been neglected for many years, have been renewed in the last 20 years with the build-operate-transfer model carried out with TOBB; Especially Kapıkule and Hamzabeyli Customs Gates, which are our main land gates opening to the EU, cannot meet the needs with an average of 20 km queues and full truck parks. The reluctance of the EU side to open new customs gates with Turkey remains almost like a technical obstacle in our common trade. The construction of new customs gates to be opened to the EU by foreseeing the working models of the future is now an inevitable necessity.

Again, Sarp Customs Gate, which opens to Georgia, has difficulty in responding to the increasing traffic.

In addition, new business models such as one-stop control at our customs gates, common gates, and virtual queues should be introduced quickly.

Delays due to physical inadequacies and workload, heavy bureaucratic practices, non-authority and the tendency to prolong the solution by asking the center has still not been broken.
Especially in Istanbul, which produces 50% of Turkey's foreign trade transactions, both the inadequacy and obsolescence of the port and customs administrations and the capacity problems in the warehouses cause serious delays and high costs.
On the other hand, in air transportation, high service and warehouse fees at Istanbul Airport, the inability to carry out the 12-hour free warehouse application, the problems experienced in overtime operations, high transportation costs by road from the airport created by the almost monopolized cooperatives, etc. problems await solutions.

Basic Problems in Customs and Foreign Trade Transactions
What other problems do 326,985 export and export companies face as of 2021? These problems can be grouped under the following headings:
• High logistics costs
• Increased financing costs
• Difficulties in accessing Eximbank supports
• Increasing technical barriers and inspections in foreign trade transactions (As of 2021, the inspection directly affecting a total of 300,000 lots of products, almost one out of every four products is within the scope of TAREKS.)
• IGV applications (as of 2021, there are 4,757 products in total)
• Surveillance practices (as of 2021, on 3,277 products with 142 different Communiqués)
• Costs arising from additional and unfair, uncontrolled fees ranging from 350-600 dollars per container
• High physical control rates (15.3% in imports, 2.8% in exports in 2021), increased company audits
• Road transit quota problems, visa problems with EU countries
• Unfair competition caused by the obstruction of the Customs Union process and Turkey's inability to take part in EU decision processes.
• Coordination and coordination problems in public administrations
• Outdated technology and inadequacy of the computer system (BİLGE) used by the customs administration
• Inability to switch to paperless transactions in imports
• Inadequacy of public-private cooperation mechanisms
• The punishment of taxpayers who pay their taxes on time with tax amnesties.
• Inadequate sharing of legislative changes with the sector beforehand, frequently changing regulations
Unsung Heroes of Foreign Trade Customs Brokers

Customs brokers, who carry out more than 90% of foreign trade transactions in Turkey, are an integral part of foreign trade transactions and an important link in the supply chain, with their qualified, special expertise, intricate and global services they offer in facilitating trade between state bodies and tradesmen. While it has come to the fore as a respectable business line almost everywhere, it does not see the value it deserves in our country.

It is the basic expectation of all sector employees that the customs consultancy sector, which is the secret hero of foreign trade, employs approximately 50,000 people, and provides uninterrupted service in the supply chain, sees the value it deserves. In this direction; The increase in the number of companies that provide services in a corporate structure, have professional management and expert staff, have a strong IT infrastructure, and focus on technology and innovation will increase the strength of the sector.