TRIANGLE TRAFFIC IN DETERMINING PRODUCT ORIGIN

Bilal ALTUNTAŞ
Customs Consultant

Triangular traffic entered our customs legislation with the Customs Union agreement with the EU. The definition of Triangle Traffic and INF 2 information form is included in the Decision No. 2006/10895 on the Principles Concerning the Implementation of the Customs Union Established between Turkey and the European Community.

Accordingly, "Triangle Traffic" refers to the procedure for products temporarily exported from a part of the Customs Union Customs Territory and processed in a third country to be released into free circulation with partial or full customs duty exemption in the other part of the Customs Union Customs Territory.

 "INF 2 Information Form" means the products issued by the customs administration that allows the use of triangular traffic within the scope of the Outward Processing Regime, and which is temporarily exported from one part of the Customs Union Customs Territory and processed in a third country, and is free of partial or full customs duty exemption in the other part of the Customs Union Customs Territory. It refers to the document that allows it to be put into circulation.

Since triangular traffic is used for goods subject to temporary export, it is used in the External Processing Regime practices included in the Customs Law No. 4458.

Outward Processing Regime in the Law, without prejudice to the provisions regarding the standard exchange system envisaged in articles 144 to 148 and the provision of article 116, is the temporary export of goods in free circulation from the Turkish Customs Territory to be subjected to outward processing activities and the full import taxes of the products obtained as a result of these activities. It is defined as the regime in which the provisions regarding the re-entry into free circulation through partial exemption or exemption are applied.

Upon the request of the right holder, the use of triangular traffic within the framework of the outward processing regime is permitted by the customs administration where the export transaction is carried out. INF 2 Information Form is used to benefit from full or partial import tax exemption for processed goods or substitute products that are put into free circulation within the framework of the outward processing regime triangular traffic system. INF 2 Information Form proves that the temporary export goods are within the scope of triangular traffic.

Regarding the goods that are subject to the outward processing regime and are intended to be taken to another part of the Customs Union Customs Territory after being processed, the customs administration that gives the outward processing permit upon request shall issue two copies of the INF 2 Information Form, one of which is an original, in Turkish or in the European Union. It is drawn up in one of the official languages ​​of the.

INF 2 Information Form shows the amount of goods entering the Outward Processing Regime. In case of re-importation of processed or substitute products in different customs administrations in case of multiple shipments, the customs administration that issues the permit issues the required number of INF 2 Information Forms for the amount of goods entering the regime, in line with the request of the permit holder.

If the customs administration that issues the permit considers that additional information should be added to the information in the information forum, it must record this information in the information form. If there is not enough space on the form, an additional form is prepared to be specified in the original copy and attached to the form.

If the customs administration that issues the permit considers that additional information should be added to the information in the information forum, it must record this information in the information form. If there is not enough space on the form, an additional form is prepared to be specified in the original copy and attached to the form.

The first information form issued by the customs administration that issued the permit can be replaced with additional information forms, or in cases where a single form is used, the amount of the goods is stated on the form by the customs administration. If there is not enough space on the form, an additional form is prepared to be specified in the original copy and added to the form.

Customs administrations may allow the use of unifying information forms for goods subject to triangular traffic, which includes more than one processing activity that will cover all exports and imports within a certain period.

The customs administration that issues the triangular traffic permit may issue a retrospective INF 2 Information Form in exceptional cases. However, the retroactive validity period cannot exceed the period required to retain the document.

When products that have been sent from European Union member countries to third countries and processed are requested to be released for free circulation in the Turkish Customs Territory within the scope of the INF 2 Information Form, the taxes on the goods within the scope of the external processing regime shall be paid upon the request of the responsible party and if the goods in question are of EU or Turkey origin or EU or in case they originate from a third country that has been put into free circulation in the Turkish Customs Territory with a customs duty rate higher than zero, on the date when the declaration of entry into free circulation of the processed products is registered, taking into account as customs value an amount equal to the cost of the transaction carried out within the scope of the outward processing regime, It is determined based on the tax rate to be applied to the products and other taxation elements. In determining the origin of the goods, the non-preferential origin provisions of the Customs Law are taken as basis.

However, if it is determined before the processed products are put into free circulation that the sole purpose of putting them into free circulation for temporary export goods that are not of EU or Turkey origin and are put into free circulation with zero customs duty, the mentioned provisions will not be applied in calculating the import duties of the treated products. The duties of the goods in question are calculated by deducting the amount of import duties that will be applied to the temporary export goods when they are imported on the same date from the country where they were last subjected to processing activity, from the import duties of the processed products.

Within the scope of the outward processing regime, the movement of goods, that is, entry and exit transactions, are, as a rule, carried out by the same customs administration. The triangular traffic system constitutes an exception to this practice and allows the product exported within the scope of HIR to enter a different customs point from the exit customs gate. For example, goods that are temporarily exported by an EU member country to a third country, for example from Germany to Russia, and that come to Turkey from Russia after being processed, are exempt from customs duty at the stage of entering into free circulation in Turkey. Triangular traffic permit is issued upon the request of the taxpayer and upon approval of the INF 2 Information Form by the relevant customs administration.

 For triangular traffic application, INF 2 Information Form must be submitted to the customs administration. INF 2 Information Form can only be issued if the triangular traffic system is requested for the goods exported within the framework of the Outward Processing Regime. In other words, relevant companies are required to have an Outward Processing Permit or Outward Processing Permit within the framework of the Outward Processing Regime, which allows the temporary export of goods in free circulation, and subsequently prepare the INF 2 Information Form.

In the trade between Turkey and the European Community, when the INF 2 Information Form is submitted to the customs by the responsible party for the goods entering the Turkish customs territory after being exported from the Community to third countries according to the Outward Processing Regime, tax exemption is applied to the part of the imported goods subject to the Outward Processing Regime based on this document. In this respect, the INF 2 Information Form functions as a kind of A.TR Circulation Document. Naturally, this process is also valid for goods starting from Turkey and going to the European Union via third countries. INF 2 document helps calculate the exemption to be applied to the goods by the import customs administration by indicating the amount/value of the temporary export goods used in the processed product.

Although triangular traffic is not used extensively in Turkey, since the European Union consists of 27 countries and there is a system that allows goods that leave temporarily in any of these countries to enter the union from another European Union member country, rather than from the country of departure, it is especially important in Europe. It plays an important role in the Union in terms of determining and tracking the taxes and country of origin of goods.

Source:

Decision No. 2006/10895 on the Principles Concerning the Implementation of the Customs Union Established between Türkiye and the European Community

Customs Law No. 4458

Outside Processing Regime Decision

QUESTIONS AND ANSWERS

Question 1. In which customs regime is the triangular traffic system used?

Answer: Since triangular traffic is used for goods subject to temporary export, it is used in the Outward Processing Regime in the Customs Law No. 4458.

Question 2. Which information form is used in the triangle traffic system?

Answer: INF 2 Information Form is used to benefit from full or partial import tax exemption for processed goods or substitute products that are put into free circulation within the framework of the outward processing regime triangular traffic system. INF 2 Information Form proves that the temporary export goods are within the scope of triangular traffic.

Question 3. Which information form provides tax exemption for the part that is subject to the Outward Processing Regime?

Answer: In the trade between Turkey and the European Union, when the INF 2 Information Form is submitted to the customs by the responsible party for the goods entering the Turkish Customs Territory after being exported from the EU to third countries according to the Outward Processing Regime, based on this document, the part of the imported goods subject to the Outward Processing Regime is Tax exemption applies.

Question 4. Which document is used in accordance with the bridge legislation regulating direct trade between the EU Customs Territory and the Turkish Customs Territory and the trade between the EU and Turkey through third countries?

Answer: The document that provides tax exemption in direct trade of industrial products between the EU Customs Territory and the Turkish Customs Territory is the A.TR Movement Certificate. When INF 2 Form is submitted for goods coming to the Customs Zone from third countries other than Turkey and the EU and previously sent out of the zone within the scope of the Outward Processing Regime, this document helps calculate the exemption to be applied to the goods by the import customs administration by indicating the amount/value of the temporary export goods used in the processed product. .

Question 5. Within the scope of the outward processing regime, in case the processed products or unchanged goods will be re-imported from different customs and more than one batch, which document will be issued by the customs administration where the regime declaration is made upon the request of the permit holder?

Answer: In case of re-importation of processed or substitute products in different customs administrations in case of multiple shipments, the customs administration that issues the permit issues the required number of INF 2 Information Forms for the amount of goods falling under the regime, in line with the request of the permit holder.