Additional Customs Duty (ACD): Legal Basis, Rules of Origin, and Impact on Imports

In international trade, countries shape their import policies through customs tariffs and various regulatory instruments.

In Turkey, one of these instruments is the Additional Customs Duty (ACD).

Although ACD is often regarded simply as an additional financial obligation payable at the time of importation, the subject requires a more comprehensive examination in terms of its legal dimension, rules of origin, and international trade agreements.

What Is the Additional Customs Duty?

The Additional Customs Duty is a tariff instrument that may be applied on top of the existing customs duty upon the importation of certain goods.

The scope and rates of the application are determined by the relevant Presidential Decree and its annexed schedules.

When assessing the legal basis of ACD, Law No. 474 on the Customs Tariff Schedule, the relevant decrees, and Turkey's international obligations must all be taken into account together. The Difference Between ACD and Trade Defence Measures The Additional Customs Duty should not be classified in the same legal category as anti-dumping or safeguard measures.

Anti-dumping and safeguard measures are trade defence instruments subject to specific investigation and injury determination conditions. ACD, on the other hand, operates as a regulation within the framework of customs tariffs.

This distinction is important for a correct understanding of the legal bases and limits of the application.

Why Are Rules of Origin Important?

The origin of a product is one of the decisive factors in the application of Additional Customs Duty. The country from which a product is dispatched and its country of origin are not always the same. Furthermore, an A.TR movement certificate alone does not constitute proof that the goods originate from the European Union. For this reason, the product's origin, preferential trade arrangements, and applicable ACD decisions must be assessed together in import transactions.

Customs Union and Free Trade Agreements

Turkey's Customs Union relationship with the European Union and the Free Trade Agreements concluded with third countries play an important role in the application of import duties. However, in order to benefit from preferential treatment, the scope of the relevant agreement and the required rules of origin conditions must be satisfied. It is important to distinguish between A.TR documents, preferential origin certificates, and other regulations concerning proof of origin.

Risks for Importers

It is not sufficient for importing companies to consider only the purchase price of the product or the basic customs duty rate. The HS code, origin, ACD rate, and any other applicable financial obligations may significantly affect the total import cost. Incorrect origin assessment or incomplete regulatory checks may result in additional financial obligations and disputes at a later stage.

Conclusion

The Additional Customs Duty is not merely a factor that increases import costs; it is also one of the key instruments of foreign trade and tariff policy. In order to properly manage ACD applications, customs tariffs, rules of origin legislation, international agreements, and current regulations must all be assessed together.

Hüseyin Coşar
B2BExim Customs and Foreign Trade Services Coordinator