Incorrect Customs Value Allegation in Turkey: Criminal Liability and Customs Penalties 2026

Foreign importer accused of declaring an incorrect customs value in Turkey? Learn when undervaluation may result in additional duties and administrative penalties, when it may escalate into a criminal smuggling investigation, and how foreign companies can defend customs valuation allegations in 2026.

An allegation that imported goods were declared at an incorrect customs value can create significant financial and legal exposure for a foreign company operating in Turkey. Customs authorities may reassess the value of the imported goods, demand additional customs duties, impose administrative penalties and examine earlier import declarations.

In more serious cases, authorities may also investigate whether the valuation discrepancy was part of conduct falling within Turkey’s anti-smuggling legislation.

But an essential distinction must be made from the beginning:

An incorrect customs value does not automatically constitute a criminal offence in Turkey.

The Ministry of Trade’s current customs-value guidance confirms that where the declared value of goods subject to value-based import taxation is lower than the value determined under Articles 23–31 of the Customs Law, Customs Law Article 234(1)(b) provides for collection of the missing import duties together with a monetary penalty equal to three times the tax difference. The Ministry separately states that the provisions of Law No. 5607 on Combating Smuggling remain reserved.

That separation is extremely important.

A foreign importer may therefore face a substantial customs assessment and administrative penalty without the facts necessarily establishing criminal smuggling.

The correct analysis should begin with:

Declared value → Customs-determined value → Reason for difference → Documents used → Payments made → Person responsible → Knowledge and conduct → Applicable customs provision → Possible criminal allegation.

What Is Customs Value in Turkey?

Customs value is not always identical to the number appearing on a commercial invoice.

According to the Ministry of Trade, customs value is the value determined under the valuation provisions of the Customs Law and Customs Regulation for purposes including the calculation of ad valorem customs duties.

The Ministry identifies six valuation methods:

1. Transaction value method
2. Transaction value of identical goods
3. Transaction value of similar goods
4. Deductive method
5. Computed value method
6. Fall-back method

As a general principle, the transaction-value method is considered first. The other methods are applied sequentially where the preceding method cannot properly determine the customs value, subject to the rules governing the order of certain methods.

This matters because a valuation dispute can involve a genuine disagreement about customs methodology rather than deliberate fraud.

What Is an Incorrect Customs Value Declaration?

An incorrect customs value allegation may arise where customs concludes that the value declared by the importer was lower than the legally applicable customs value.

For example:

Declared customs value: €400,000

Customs-determined value: €650,000

The authorities may demand additional import duties based on the €250,000 difference.

But the criminal question requires more:

Why did the difference arise?

Administrative Penalty Does Not Automatically Mean Criminal Liability

Under the Ministry’s current guidance, an undervaluation identified during examination, inspection or post-clearance control can trigger Customs Law Article 234 consequences.

For the ordinary case covered by Article 234(1)(b), the importer may face:

Missing import duties + monetary penalty equal to three times the tax difference.

The Ministry also describes reduced treatment for certain quantity differences not exceeding 5% and undervaluations arising from material calculation errors.

This administrative regime should not be confused with a criminal conviction.

The Ministry itself expressly states in the same guidance that Law No. 5607 remains reserved.

In practical terms:

Customs reassessment ≠ automatic smuggling offence.

When Can Incorrect Customs Value Become a Criminal Issue?

The risk increases where authorities believe the discrepancy was not simply a valuation mistake but part of deliberate conduct potentially satisfying a specific offence under Law No. 5607 or another applicable criminal provision.

Warning signs may include:

• Fabricated commercial invoices
• Two different invoices for the same goods
• Hidden payments to the supplier
• Deliberately concealed purchase consideration
• False documents
• Undisclosed side agreements
• Payments through related companies
• Systematic undervaluation across many shipments
• Instructions to a customs broker to use false values
• Manipulated supplier documents
• Artificial transactions designed to conceal the actual commercial arrangement

Even then, the precise statutory offence and the conduct of each suspect must be established.

A Low Declared Value Alone Does Not Prove Fraud

Suppose customs determines that imported machinery should have been declared at €900,000 rather than €700,000.

That €200,000 difference is important.

But it does not itself prove:

• False invoice
• Criminal agreement
• Deliberate concealment
• Manager knowledge
• Smuggling

The reason for the difference must be investigated.

Transaction Value Disputes

The commercial invoice may state the genuine amount paid for the goods, yet customs may still dispute whether the invoice amount constitutes the complete customs value.

Questions can arise regarding:

• Freight
• Insurance
• Commissions
• Royalties
• Licence fees
• Assists
• Tooling
• Moulds
• Engineering
• Related-party pricing
• Subsequent price adjustments

A legal disagreement about whether a particular element should be included in customs value should not automatically be characterized as fraudulent undervaluation.

Hidden Purchase Price

A materially different situation arises where the importer allegedly pays part of the purchase price outside the invoice.

Example:

Customs invoice: €300,000

Payment to supplier: €300,000

Additional payment to supplier’s related company: €250,000

Customs may investigate whether the second payment was actually part of the price of the imported goods.

The importer should establish what the €250,000 payment represented.

Follow the Complete Payment Chain

A customs-value defense should compare:

Contract → Purchase order → Invoice → Customs declaration → Bank transfer → Supplier ledger → Additional payments.

Relevant banking evidence may include:

• SWIFT records
• Bank statements
• Payment instructions
• Letters of credit
• Credit notes
• Debit notes
• Intercompany accounts

Every significant difference should be explained through genuine commercial documentation.

Double-Invoice Allegation

One of the highest-risk scenarios occurs where authorities find two invoices for apparently the same shipment.

For example:

Invoice presented to Turkish customs: €180,000

Invoice discovered in company email: €420,000

This can create an immediate suspicion of intentional undervaluation.

However, the second document must still be analyzed.

It may be:

• Pro forma invoice
• Preliminary quotation
• Revised invoice
• Consolidated invoice
• Invoice covering additional goods
• Cancelled invoice
• Invoice from another transaction
• Final commercial invoice

Do not assume either guilt or innocence from the existence of two documents alone.

Check Which Invoice Was Actually Paid

Banking evidence becomes particularly important.

If €180,000 was declared but €420,000 was actually transferred to the supplier for the same imported goods, the discrepancy requires a documented explanation.

Conversely, if the €420,000 document was merely an abandoned quotation and the actual transaction closed at €180,000, the payment trail may support the importer’s explanation.

False Invoice Versus Incorrect Valuation

These are not necessarily the same problem.

An invoice may be completely genuine, while customs disagrees with the customs-value calculation.

Alternatively, authorities may allege that the invoice itself was fabricated.

The second allegation can create substantially greater criminal exposure.

Investigate:

Who issued the invoice?

Was the transaction genuine?

What was actually paid?

Who received the document?

Who submitted it to customs?

Did anyone know it was false?

Supplier Issues an Incorrect Invoice

Foreign suppliers can make mistakes.

For example, a supplier may:

• Use an old price
• Omit a price adjustment
• Invoice only part of a shipment
• Apply the wrong currency
• Send a pro forma invoice instead of the final invoice
• Fail to include contractual additions

If the Turkish importer relied on incorrect supplier information, preserve evidence showing what the importer actually received and knew at the time of declaration.

Supplier Misconduct Does Not Automatically Prove Importer Guilt

Suppose a foreign supplier intentionally issues an artificially low invoice without informing the Turkish importer.

The importer pays only the stated invoice amount and has no hidden side agreement.

That factual situation differs substantially from a coordinated undervaluation arrangement.

Preserve:

• Purchase order
• Contract
• Invoice
• Bank transfer
• Supplier correspondence
• Price negotiations
• Internal approvals

Related-Party Imports

Customs valuation frequently becomes more complex when goods are imported from:

• Parent company
• Subsidiary
• Sister company
• Other group company

The corporate relationship does not automatically make the declared value unlawful.

But customs may examine whether the relationship influenced the transaction price.

The Ministry’s customs-value guidance also states that failure to declare a relationship falling within Customs Law Article 24 can trigger an irregularity penalty even where there is no tax loss.

Foreign corporate groups should therefore accurately document related-party transactions.

Transfer Pricing and Customs Value Are Not Identical Concepts

Multinational companies should avoid assuming that a transfer price accepted for corporate-tax purposes automatically resolves customs valuation.

The customs-value analysis should be performed under the applicable customs legislation.

Preserve:

• Intercompany agreements
• Transfer-pricing studies
• Price lists
• Comparable sales
• Cost calculations
• Year-end adjustments
• Credit and debit notes

Year-End Transfer Pricing Adjustments

A multinational group may make year-end pricing adjustments after imports have already occurred.

This can create difficult customs questions.

Determine:

• Why the adjustment occurred
• Which goods it relates to
• Whether it increases or decreases purchase price
• Whether customs declarations are affected
• Whether customs authorities were notified where required

Do not simply treat a year-end accounting entry as irrelevant to customs.

Royalties and Licence Fees

A common customs-value dispute concerns royalties.

The importer may purchase goods from one group company and separately pay another entity for:

• Trademark licence
• Patent
• Technology
• Manufacturing know-how
• Franchise rights

Customs may examine whether the payment should be considered in the customs value under the applicable rules.

The correct defense requires analysis of the contractual relationship rather than concealment of the licence agreement.

Software and Imported Machinery

Modern machinery may include:

• Hardware
• Embedded software
• Separate software licence
• Remote services
• Installation
• Training
• Maintenance

A dispute may arise over which payments form part of customs value.

Preserve separate contracts and detailed invoices.

Engineering and Design Costs

Foreign manufacturers may use engineering, design, tooling or moulds provided by the buyer.

Whether these arrangements affect customs value depends on the applicable valuation rules and facts.

A company should document:

• Who supplied the item or service
• Where it was produced
• Its value
• Whether supplier charged for it
• Relationship to imported goods

Freight and Insurance

Importers should verify whether relevant freight and insurance components have been treated correctly.

A simple Incoterms misunderstanding can create a valuation discrepancy without necessarily indicating deliberate criminal conduct.

Preserve:

• Sales contract
• Incoterm
• Freight invoice
• Insurance policy
• Bill of lading
• Freight-forwarder invoice

Currency Conversion Errors

A customs value may be wrong because:

• Incorrect currency was selected
• Wrong exchange rate was applied
• Decimal point was misplaced
• ERP converted the amount incorrectly

These mistakes can still have customs consequences.

But a genuine calculation or system error should be factually distinguished from deliberate manipulation.

Customs Broker Error

Foreign importers commonly authorize customs brokers to handle declarations.

If the broker entered an incorrect value, determine:

1. What invoice did the importer provide?
2. What value did the importer communicate?
3. Did the broker alter it?
4. Did the importer approve the declaration?
5. Were there warnings?
6. Was the error repeated?

The communication trail can become decisive.

Broker Involvement Does Not Automatically Eliminate Importer Exposure

The importer should not rely solely on:

“Our customs broker filed it.”

Customs authorities may still examine what information the importer provided and whether company personnel knew that the declaration was incorrect.

At the same time, a broker’s independent mistake should not automatically be transformed into deliberate criminal conduct by company management.

Foreign Director Liability

A foreign director is not automatically criminally liable merely because the company submitted an incorrect customs value.

Investigators should determine:

• Did the director negotiate the purchase?
• Did the director know the actual price?
• Did they receive the invoice?
• Did they authorize side payments?
• Did they instruct the broker?
• Did they approve false documents?

Individual conduct matters.

Foreign CEO With No Customs Role

A CEO may supervise the overall company without reviewing individual customs declarations.

Preserve:

• Organization charts
• Job descriptions
• Delegation records
• Customs procedures
• Approval matrices
• ERP permissions

Corporate title should not replace evidence of actual participation.

Foreign Shareholder Liability

A shareholder should not be treated as personally responsible simply because they own the importing company.

Investigators should distinguish:

Ownership

from

Management

from

Operational participation in the disputed imports.

Acquisition After the Imports

Suppose a foreign investor purchases a Turkish company in 2026.

Customs then investigates undervaluation allegedly occurring in 2023–2025.

The new shareholder should immediately document:

• Acquisition date
• Closing date
• Previous management
• Historical customs team
• Due-diligence findings
• Access to historical records

Later ownership does not itself establish participation in earlier customs declarations.

Can Customs Investigate Historical Imports?

Yes.

Customs clearance does not necessarily mean the declaration will never be examined again.

The Ministry of Trade continues to conduct both secondary declaration reviews and post-clearance company audits. On July 7, 2026, it reported TRY 8.3 billion in additional assessments and penalties from these controls during the first six months of 2026.

By August 2026, the Ministry reported that the total for the first seven months had reached TRY 8.9 billion, representing a 29% increase compared with the corresponding period of the previous year.

Customs Value Is Specifically Being Analyzed Through Data Systems

The Ministry states that its risk-control architecture includes the Customs Value Alarm System, alongside post-clearance and secondary-control systems used to identify risky companies and declarations.

This is especially relevant for foreign companies making repeated imports.

A valuation pattern may be identified by comparing:

• Same product
• Same supplier
• Different importers
• Historical declarations
• Market information
• Other transactions

One Shipment Can Expand Into a Multi-Year Review

If customs finds an apparent undervaluation in one shipment, authorities may examine previous declarations involving:

• Same supplier
• Same tariff code
• Same product
• Same broker
• Same pricing structure
• Same related company

The importer should therefore investigate historical exposure promptly.

Do Not “Fix” Historical Documents

Once an investigation begins, never:

• Change invoices
• Alter contracts
• Delete emails
• Modify ERP records
• Backdate price agreements
• Create artificial credit notes
• Ask the supplier to issue fictitious historical documents

Preserve the original evidence.

Internal Investigation

A foreign-owned company facing a serious customs-value allegation should reconstruct the disputed transactions internally.

Determine:

1. What goods were purchased?
2. What was the contractual price?
3. What amount was invoiced?
4. What amount was declared?
5. What amount was actually paid?
6. Were additional payments made?
7. Were royalties involved?
8. Were buyer-supplied assists involved?
9. Who calculated customs value?
10. Who approved the declaration?

Create a Customs Value Reconciliation

A useful working document may look like this:

Component	Commercial Record	Customs Treatment
Goods price	€500,000	Review
Freight	€25,000	Review
Insurance	€5,000	Review
Royalty	€40,000	Review
Tooling	€30,000	Review
Total potential adjustments	€100,000	Legal analysis required

The purpose is not to assume every amount must be added.

It is to ensure that every component is identified and legally analyzed.

Criminal Investigation Under Law No. 5607

An administrative undervaluation finding does not by itself establish a smuggling offence.

Where authorities believe the valuation discrepancy forms part of conduct satisfying Law No. 5607, however, a criminal investigation can arise.

The investigation should then identify:

The precise alleged offence

The alleged deceptive conduct

The person responsible

The documents relied upon

The alleged customs advantage

A generic statement that “customs value was low” is not enough to explain personal criminal liability.

False Documentation Can Change the Risk Profile

The case becomes more serious where investigators allege that a person deliberately created or used false documentation.

Examples include:

• Fabricated invoice
• Artificial supplier agreement
• False credit note
• Fake payment document
• False declaration about related parties
• Secret second invoice

The defense should determine who created, received and used each document.

Criminal Responsibility Is Individual

In a multinational import transaction, many participants may be involved:

Participant	Relevant Question
Foreign supplier	What price and documents were supplied?
Turkish importer	What value was understood and declared?
Customs broker	What information was received?
Finance department	What payments were made?
Foreign director	What did the director actually know?
Parent company	Did it control the pricing arrangement?

Do not treat the entire corporate group as one individual actor.

Goods May Be Seized

Where a customs-value dispute develops into a criminal smuggling investigation, goods connected with the alleged offence may become subject to criminal-procedure measures.

The company should immediately determine:

• Whether goods are merely held or formally seized
• Legal basis
• Investigation number
• Quantity
• Customs-determined value
• Storage location
• Whether confiscation is alleged

Seizure is not the same as final confiscation.

Paying the Customs Assessment Does Not Automatically End a Criminal Investigation

This is particularly important.

A company may decide to pay additional duties or an administrative penalty for commercial reasons.

That payment does not necessarily mean:

The criminal allegation disappears

or

The company has admitted criminal intent.

The customs and criminal consequences should be analyzed separately.

Effective Remorse Under Law No. 5607

Law No. 5607 contains a specific effective-remorse regime for qualifying smuggling offences. Official Ministry of Justice legal analysis describes Article 5 as including a mechanism connected, in specified circumstances, with payment calculated by reference to twice the customs value of the smuggled goods.

Whether that mechanism applies depends on the exact alleged offence, procedural stage and statutory conditions.

A foreign importer should therefore not make admissions or strategic payments solely because someone says:

“Pay and the criminal file will automatically close.”

The legal consequences should first be calculated.

Can the Company Challenge the Customs Value?

Depending on the procedural posture, the company may have customs-law remedies against assessments and penalties.

The customs dispute and criminal defense should be coordinated.

A criminal defense should not accidentally concede the customs valuation issue.

Likewise, an argument made in the customs file should be reviewed for its possible effect on a criminal investigation.

Independent Expert Analysis

Complex valuation disputes may require review by:

• Customs specialist
• Accountant
• Industry specialist
• Technical expert
• Transfer-pricing professional

The legal team should coordinate the analysis so that the commercial evidence and legal position remain consistent.

Evidence Most Useful in an Incorrect Customs Value Case

Preserve:

• Sales contract
• Purchase orders
• Commercial invoices
• Pro forma invoices
• Bank statements
• SWIFT records
• Letters of credit
• Freight invoices
• Insurance
• Royalty agreements
• Licence agreements
• Intercompany agreements
• Transfer-pricing records
• Credit notes
• Debit notes
• Customs declarations
• Broker correspondence
• Supplier emails
• ERP records
• Accounting ledgers

The complete transaction is usually more important than any single document.

2026 Current Enforcement Position

Customs valuation remains a significant enforcement area in 2026.

The Ministry reported TRY 8.9 billion in additional assessments and penalties from secondary declaration examinations and post-clearance audits during the first seven months of 2026, up 29% from the same period of the prior year.

The Ministry also confirms continued use of data-driven risk tools, including a dedicated Customs Value Alarm System.

Accordingly, foreign companies should assume that valuation discrepancies can be identified after customs clearance and potentially across multiple historical declarations.

25 Immediate Steps After an Incorrect Customs Value Allegation

1. Obtain the disputed customs declaration.
2. Identify the value originally declared.
3. Identify the value determined by customs.
4. Obtain the valuation calculation.
5. Identify why customs rejected the declared value.
6. Preserve the sales contract.
7. Preserve all invoices.
8. Preserve purchase orders.
9. Preserve bank records.
10. Reconcile every supplier payment.
11. Identify additional payments.
12. Review freight and insurance.
13. Review royalties and licence fees.
14. Review buyer-supplied assists.
15. Review related-party relationships.
16. Preserve transfer-pricing records.
17. Preserve customs-broker correspondence.
18. Identify who calculated the declared value.
19. Identify who approved the declaration.
20. Review historical imports involving the same supplier.
21. Do not alter historical documents.
22. Determine whether goods have been seized.
23. Determine whether Law No. 5607 is being invoked.
24. Review customs-law objection and payment strategy.
25. Coordinate the customs and criminal defense before making admissions.

Frequently Asked Questions

1. Is declaring the wrong customs value automatically a crime in Turkey?

No. The Ministry of Trade’s current guidance expressly provides administrative consequences under Customs Law Article 234 for certain undervaluations while separately reserving Law No. 5607. Criminal liability therefore requires a separate legal and factual analysis.

2. What is the administrative penalty for undervaluation?

For the ordinary situation described under Article 234(1)(b), current Ministry guidance states that the missing import duties are collected together with a monetary penalty equal to three times the tax difference. Specific reduced treatment applies to certain limited differences and material calculation errors.

3. Can a valuation dispute become a criminal smuggling investigation?

Potentially, where authorities believe the facts satisfy a specific criminal provision—for example, where the alleged undervaluation involves deliberately false documentation or concealed commercial arrangements. A valuation difference alone should not substitute for analysis of the alleged offence.

4. Is a second invoice proof of customs fraud?

Not automatically. Determine whether it is a pro forma invoice, quotation, revised invoice, cancelled invoice or genuine second commercial invoice. Compare it with the contract and actual payments.

5. What if the foreign supplier issued the wrong invoice?

Preserve the original purchase order, contract, invoice, payment and communications. The supplier’s mistake can be highly relevant to what the importer and its managers actually knew.

6. Can a foreign CEO be personally prosecuted?

Potentially, if evidence connects the CEO to alleged criminal conduct. Corporate title alone does not establish that the CEO knew of or participated in the disputed customs valuation.

7. Can customs investigate old declarations after the goods were released?

Yes. The Ministry actively conducts post-clearance audits and secondary declaration examinations. During the first seven months of 2026, these controls produced TRY 8.9 billion in additional assessments and penalties.

8. Does paying additional customs duty end a criminal case?

Not automatically. Administrative customs liabilities and criminal proceedings are separate. If Law No. 5607 is involved, any effective-remorse strategy should be evaluated under the exact statutory conditions before payment or admissions are made.

9. Can customs seize goods because of an undervaluation allegation?

Seizure can become relevant where the matter develops into a criminal investigation and the statutory requirements for measures against the goods are satisfied. Seizure should not be confused with final confiscation or proof of guilt.

10. What should a foreign importer do first?

Reconstruct the entire transaction: contract → invoice → customs value → declaration → bank payment → additional payments → supplier records. Then determine whether the case concerns an administrative valuation disagreement, alleged false documentation or a specific criminal allegation under Law No. 5607.

Legal Assistance for Foreign Companies Facing Customs Value Investigations in Turkey

An incorrect customs value allegation can develop from an administrative customs assessment into a much broader investigation involving historical imports, related-party transactions, foreign suppliers, customs brokers, company managers and potentially criminal allegations.

Fırat Fesih Kaya Law Office provides legal assistance to foreign companies, multinational groups, foreign investors, importers and executives facing customs valuation disputes and criminal customs investigations in Turkey.

Lawyer Fırat Fesih Kaya assists foreign clients with customs undervaluation allegations, incorrect customs value assessments, double-invoice investigations, related-party imports, royalties and licence fees, post-clearance audits, customs penalties, seized goods and criminal investigations under Law No. 5607.

Early legal analysis can be particularly important where customs authorities have identified hidden payments, multiple invoices, systematic historical valuation differences, related-party pricing arrangements or evidence that may cause an administrative customs dispute to develop into a criminal investigation.

Phone: +90 312 434 22 22
Mobile: +90 532 769 22 22
Email: info@firatfesihkaya.av.tr
Address: Mevlana Boulevard No:221, Yıldırım Tower No:148, 06520 Balgat, Çankaya, Ankara, Turkey

This publication is provided for general informational purposes and does not constitute legal advice. Customs valuation and criminal liability depend on the specific transaction, valuation methodology, documents, payments, conduct of the individuals involved and the statutory provisions applicable to the particular case.