Foreign Company Goods Confiscated in Turkey: Seizure, Confiscation and Customs Remedies 2026

Foreign company goods seized or confiscated by Turkish customs? Learn the 2026 remedies for criminal seizure, confiscation, liquidation, innocent third-party ownership, return of goods and customs-smuggling investigations in Turkey.

When a foreign company’s cargo, machinery, commercial stock or other goods are taken by Turkish customs or criminal authorities, the first priority is to determine what legal measure has actually been imposed. Foreign businesses frequently use the word “confiscated” for every situation in which they lose physical control of their property. Under Turkish law, however, customs detention, criminal seizure, liquidation and final confiscation are different legal concepts.

That distinction determines the remedy.

A temporary seizure during a criminal investigation does not necessarily mean that ownership has permanently passed to the State. Likewise, a customs hold does not necessarily mean that criminal proceedings have started. Goods can also become subject to statutory liquidation procedures before the underlying dispute has reached a final conclusion.

The Constitutional Court’s property-rights jurisprudence requires a fair balance between enforcement objectives and the property rights of owners. It has specifically emphasized the relevance of the connection between the owner’s conduct and the alleged illegality and the protection of good-faith owners.

For a foreign company, the correct sequence is therefore:

Identify the measure → establish ownership → identify the alleged offence → determine whether the goods are still required → prevent unnecessary liquidation → request return where legally available → challenge confiscation where applicable → preserve compensation and commercial claims.

Seizure, Confiscation and Liquidation Are Different

This is the most important distinction in these cases.

Seizure generally operates as a protective or evidentiary measure during criminal proceedings.

Confiscation concerns the permanent deprivation of property pursuant to the applicable criminal-law rules.

Liquidation concerns statutory procedures through which qualifying goods may be sold, re-exported, destroyed or otherwise disposed of.

The Ministry of Trade confirms that goods becoming subject to liquidation under both Customs Law No. 4458 and Anti-Smuggling Law No. 5607 are processed through its liquidation system.

A foreign company should therefore obtain the written decision before deciding what remedy to pursue.

Why Can Foreign-Owned Goods Be Seized in Turkey?

Goods may become involved in investigations concerning allegations such as:

• Undeclared importation
• False customs declarations
• Fake commercial invoices
• Customs undervaluation
• Incorrect quantities
• False country of origin
• Anti-dumping circumvention
• Importation without required authorization
• Restricted or prohibited goods
• Concealment of goods
• Other allegations under Law No. 5607

The existence of an allegation does not establish criminal liability.

The authorities must still determine the applicable statutory provision, the relationship between the goods and alleged conduct, and the responsibility of the individuals involved.

Obtain the Written Seizure Record Immediately

A foreign company should obtain and preserve:

• Customs inspection report
• Seizure record
• Inventory
• Investigation number
• Customs declaration
• Container numbers
• Product descriptions
• Quantities
• Serial numbers
• Storage location
• Any prosecutor or court decision

Do not rely on a freight forwarder’s statement that “customs confiscated the shipment.”

The exact legal status must be verified from the official record.

Verify What Was Actually Seized

Compare:

Purchase order → Invoice → Packing list → Bill of lading → Customs declaration → Inspection record → Seizure inventory.

For high-value goods, photograph and record identifying information where legally possible.

This is particularly important for:

• Industrial machinery
• Electronics
• Vehicles
• Medical equipment
• Spare parts
• Luxury products
• Perishable cargo

A later disagreement about quantity or identity can substantially complicate recovery.

Can a Foreign Company Recover Seized Goods?

Potentially.

Whether the goods can be returned depends on the legal basis of the seizure, the procedural stage, the alleged offence, ownership and whether physical possession of the goods remains necessary.

The fact that an investigation continues does not necessarily mean every seized item must remain unavailable until final judgment.

The return strategy should focus on two central questions:

Are the goods still necessary for the investigation or prosecution?

and

Is there a sufficient legal basis for eventual confiscation?

Foreign Company as an Innocent Third-Party Owner

This can be one of the strongest distinctions in a customs-related criminal case.

Suppose a foreign manufacturer owns machinery that was shipped to a Turkish distributor.

The Turkish distributor allegedly submits false customs documentation.

The foreign manufacturer:

• Did not prepare the customs declaration
• Did not instruct the customs broker
• Did not participate in the alleged false statement
• Did not know of the alleged irregularity
• Retained ownership of the machinery

The foreign owner should consider asserting its property rights independently rather than relying exclusively on the Turkish distributor’s criminal defense.

The Constitutional Court has emphasized that confiscation or seizure should not impose a disproportionate burden on a good-faith owner where an adequate connection between that owner’s conduct and the illegality has not been established.

Turkish Criminal Code and Good-Faith Third Parties

The Constitutional Court has specifically referred to Article 54 of the Turkish Criminal Code when considering property belonging to third parties. In a case involving vehicles belonging to third parties, the Court noted that confiscation under Article 54 requires consideration of whether the property belongs to a good-faith third party. It found a property-rights violation where that issue had not been properly evaluated.

Accordingly, ownership and good faith should be raised with evidence, not merely asserted.

How Can a Foreign Company Prove Ownership?

Relevant documents may include:

• Purchase agreement
• Sales agreement
• Commercial invoice
• Bank transfer
• Accounting records
• Equipment register
• Leasing agreement
• Insurance documents
• Shipping documents
• Delivery documentation

Ownership should be analyzed under the applicable contractual and legal framework.

Do not rely exclusively on Incoterms to establish ownership. Delivery and risk-allocation terms do not necessarily answer every ownership question under the governing law.

Foreign Supplier Retains Ownership

A foreign supplier may have shipped goods to Turkey but not yet transferred ownership under the applicable transaction structure.

If the Turkish importer becomes a criminal suspect, the foreign supplier should establish:

Who owns the goods?

When was ownership supposed to transfer?

Was the purchase price paid?

Did the supplier participate in the alleged customs violation?

The answers can materially affect the property claim.

Foreign Parent Company Owns the Goods

A Turkish subsidiary may possess equipment belonging to its foreign parent.

If the equipment is seized because of alleged conduct by subsidiary employees, preserve:

• Parent-company purchase records
• Payment evidence
• Intercompany agreement
• Lease or usage agreement
• Accounting records
• Asset register

Parent and subsidiary should not automatically be treated as one property owner merely because they belong to the same corporate group.

Leasing and Financing Structures

The same problem can arise with property owned by:

• Leasing companies
• Banks
• Equipment-financing companies
• Foreign lessors

The legal owner should independently monitor the criminal and customs proceedings.

Good Faith Must Be Supported by Evidence

Useful evidence may show that the owner:

• Acquired the property legitimately
• Paid genuine commercial value
• Had no knowledge of the alleged customs violation
• Did not direct the importer
• Did not participate in document preparation
• Did not receive proceeds from illegal conduct

The Constitutional Court’s approach focuses not merely on formal title but also on whether there is a sufficient relationship between the owner’s conduct and the violation.

Seizure Does Not Equal Criminal Guilt

A foreign company should keep the procedural sequence clear:

Suspicion → Investigation → Seizure → Prosecutorial decision → Trial where applicable → Final judgment → Confiscation determination where applicable.

A seizure is not itself proof that smuggling occurred.

It is also not proof that the foreign owner participated in any alleged offence.

Can Only Part of the Shipment Be Released?

This should be examined where the allegation concerns only part of a larger shipment.

Example:

Total cargo: 10,000 units
Disputed goods: 500 units
Undisputed declared goods: 9,500 units

The company should ask whether continued retention of all 10,000 units remains necessary.

Prepare a product-level inventory:

Goods	Quantity	Allegation	Ownership	Requested Treatment
Properly declared goods	9,500	None identified	Foreign company	Release
Disputed goods	500	Under investigation	Foreign company	Separate examination

Partial release is not automatic, but unnecessary retention of unrelated goods should be specifically challenged where the circumstances support it.

Mixed Containers Require Product-Level Analysis

A single container may include:

• Goods belonging to several companies
• Different tariff classifications
• Multiple invoices
• Several suppliers
• One disputed product

The authorities’ treatment of one product should not automatically be assumed to determine the legal status of every item in the container.

Are the Goods Still Needed as Evidence?

This is another central issue.

At the beginning of an investigation, authorities may need the goods for:

• Physical inspection
• Sampling
• Laboratory analysis
• Valuation
• Quantity determination
• Origin analysis
• Technical examination

But once these examinations are completed, the company can assess whether continued possession of the entire shipment remains necessary.

Sampling May Reduce the Need for Physical Retention

For certain products, evidence might potentially be preserved through:

• Representative samples
• Photographs
• Expert reports
• Serial-number records
• Laboratory results
• Technical documentation

Whether this is sufficient depends on the specific investigation.

Sampling does not automatically create a right to return, but it can be relevant to proportionality and continuing evidentiary necessity.

Perishable Goods Require Immediate Action

Where the seized goods are perishable, every day can matter.

Examples include:

• Food products
• Agricultural products
• Temperature-controlled goods
• Certain chemicals
• Products with short shelf lives

Immediately document:

• Expiry date
• Storage requirements
• Temperature requirements
• Market value
• Daily deterioration
• Destruction risk

A general statement that “the goods may lose value” is much weaker than documented evidence.

Machinery Can Also Lose Significant Value

Industrial machinery may not spoil, but prolonged seizure can cause:

• Corrosion
• Technical deterioration
• Warranty expiry
• Project delays
• Production interruption
• Financing losses
• Loss of resale value

These losses should be documented from the beginning.

Proportionality Matters

The Constitutional Court’s case law requires a fair balance between the public purpose of seizure or confiscation and the burden placed on the property owner. It has stated that authorities should reasonably assess the connection between the owner’s conduct and the illegality and that good-faith owners should have a meaningful possibility of recovering non-dangerous property or obtaining redress.

This does not mean every long seizure is unlawful.

Duration, investigative necessity, owner conduct and the circumstances of the case all matter.

Long-Term Seizure Should Be Monitored

A measure that was necessary on day one may require a different proportionality analysis after:

• Technical examination is complete
• Samples are taken
• Evidence is copied
• Expert reports are prepared
• The investigation narrows
• Months or years pass

The Constitutional Court has addressed the legal problems associated with prolonged seizure measures, including the availability of effective remedies.

Therefore, a rejected release request does not necessarily mean the issue should never be raised again if circumstances materially change.

Foreign Companies Can Invoke Property Rights

A company does not lose all property-rights protection merely because it is established abroad.

The Constitutional Court has previously examined the seizure of a vessel belonging to a foreign-established company through the constitutional property-rights framework. In that particular case, the Court found no violation after considering the circumstances, including the duration of the seizure and the owner’s position.

This illustrates an important point:

Foreign ownership does not prevent property-rights review, but success depends on the facts.

Liquidation Can Become an Urgent Risk

One of the biggest mistakes a foreign company can make is assuming that seized goods will simply remain in a warehouse until the criminal proceedings finish.

Turkish customs legislation provides mechanisms under which qualifying goods can become subject to liquidation.

The Ministry of Trade confirms that liquidation units handle goods becoming subject to liquidation under Customs Law No. 4458 and Anti-Smuggling Law No. 5607.

2026 Liquidation Activity Is Significant

This is not merely a theoretical procedure.

The Ministry of Trade reported on August 4, 2026 that during the first six months of 2026 its electronic auction system completed 6,826 auctions, involving 1,477 vehicles and 5,349 items, with more than TRY 2.7 billion generated for the Treasury. The Ministry states that the system includes goods and vehicles becoming subject to liquidation under Laws No. 4458 and 5607.

Foreign owners should therefore investigate liquidation status immediately rather than waiting for the criminal file to resolve itself.

Questions to Ask About Liquidation

Determine:

1. Have the goods formally become subject to liquidation?
2. Which statutory provision applies?
3. Have the goods been transferred to a liquidation unit?
4. Has a valuation been prepared?
5. Has an auction process started?
6. Have the goods already been sold?
7. Is destruction contemplated?
8. Has the owner received notification?
9. Is a return request pending?
10. What remedy remains available?

These questions can materially change the strategy.

Liquidation Is Not Final Confiscation

A company should keep these concepts separate:

Seizure: temporary control measure.

Liquidation: statutory disposal process.

Confiscation: permanent criminal-law consequence.

The existence of liquidation procedures does not eliminate the need to analyze the eventual legal rights of the owner.

Goods Already Sold

If the goods have already been sold through a statutory process, physical return may no longer be possible.

The legal team should then determine:

• Statutory basis of sale
• Date of sale
• Sale price
• Procedural notifications
• Status of the criminal case
• Consequences if return is later ordered
• Potential monetary remedy

The answer depends on the specific statutory framework.

Goods Destroyed

Goods may sometimes be destroyed because they are:

• Dangerous
• Deteriorated
• Legally prohibited
• Unfit for lawful circulation
• Subject to another statutory destruction rule

Where destruction occurs, the dispute may shift from physical return to the legality of destruction and any available monetary remedy.

Do Not Assume Compensation Is Automatic

Even where seizure later proves unnecessary or the criminal proceedings end favorably, compensation requires separate analysis.

Potential issues include:

• Applicable statutory remedy
• Causation
• Owner’s conduct
• Procedural outcome
• Evidence of loss
• Whether the loss resulted directly from seizure

Documenting loss from the first day is therefore essential.

Record Commercial Losses

Preserve:

• Storage invoices
• Demurrage
• Port charges
• Financing costs
• Customer cancellations
• Production interruption records
• Deterioration reports
• Lost-sale evidence
• Insurance correspondence
• Market valuations

Do not attempt to reconstruct all losses several years later.

Customs Release and Criminal Release Are Different

Even if the criminal authority removes the seizure, the goods may still face customs obstacles.

Possible remaining requirements include:

• Import duties
• Customs penalties
• Import licences
• Product-safety controls
• Technical conformity requirements
• Origin requirements
• Anti-dumping duties
• Trade-policy measures

Therefore:

Removal of criminal seizure ≠ automatic release into free circulation.

Both tracks should be coordinated.

Can Goods Be Returned to the Foreign Supplier?

Return-to-origin or re-export may sometimes be commercially preferable.

However, a foreign company should not assume it can simply remove seized goods from Turkey.

Whether return is possible depends on:

• Customs status
• Criminal seizure
• Nature of the goods
• Import restrictions
• Applicable customs procedure
• Any court or prosecutorial order

The criminal measure must be addressed before attempting physical movement.

Criminal Investigation Under Law No. 5607

Where the seizure arises from a suspected smuggling offence, determine the exact provision relied upon.

Do not respond merely to the phrase:

“Smuggling investigation.”

Identify:

• Goods concerned
• Customs declaration
• Alleged false information
• Alleged offender
• Alleged conduct
• Connection between goods and offence
• Role of foreign owner

This becomes particularly important where the owner is different from the suspected importer.

Foreign Supplier and Turkish Importer May Have Different Interests

Consider:

Foreign supplier: claims ownership and says Turkish importer made a false declaration.

Turkish importer: says foreign supplier provided false documents.

The parties may initially appear commercially aligned but later develop conflicting legal positions.

The foreign owner should preserve its own evidence.

Customs Broker Liability Is Separate

The customs broker may also be investigated.

Relevant questions include:

• What documents did the broker receive?
• Who supplied them?
• Did the broker know they were inaccurate?
• Did the broker alter anything?
• Did the importer approve the declaration?

Broker involvement does not automatically prove criminal participation by the foreign owner.

Foreign CEO Is Not Automatically Liable

The seizure of company goods does not automatically create criminal liability for the foreign CEO.

Investigators should determine:

• Whether the CEO participated in procurement
• Whether the CEO knew of the customs issue
• Whether the CEO instructed employees
• Whether the CEO approved false documentation
• Whether the CEO had any operational role

Corporate title is not a substitute for evidence of individual conduct.

Foreign Shareholder Is Not Automatically Liable

Likewise:

Ownership of company shares ≠ ownership of disputed conduct.

A foreign investor may have acquired the company after the relevant imports occurred.

Preserve:

• Acquisition date
• Closing documents
• Historical management structure
• Customs responsibility matrix
• Due-diligence materials

Chronology matters.

Internal Investigation Should Start Immediately

The company should reconstruct:

Supplier → Purchase order → Contract → Invoice → Payment → Shipment → Customs broker → Declaration → Inspection → Seizure.

Determine where the alleged irregularity entered the chain.

Preserve All Original Documents

Keep:

• Purchase agreements
• Invoices
• Pro forma invoices
• Packing lists
• Bills of lading
• Origin documents
• Bank records
• Customs declarations
• Technical specifications
• Broker communications
• Supplier emails
• ERP records

Foreign-language originals should be preserved together with accurate translations where needed.

Never Manufacture an Ownership Defense

After seizure, do not:

• Backdate a sale agreement
• Create a false leasing agreement
• Alter an invoice
• Fabricate a payment
• Delete messages
• Change ERP records
• Create retroactive supplier correspondence

An artificial attempt to establish ownership can seriously damage an otherwise legitimate claim.

Company and Individual Managers May Need Separate Strategies

The company may be an innocent property owner while one manager is personally accused of deliberate customs misconduct.

For example:

Company objective: recover €5 million machinery.

Manager’s issue: defend allegation of deliberately submitting false customs documents.

These objectives may overlap but are not identical.

Insurance Should Also Be Reviewed

Where commercially significant property has been seized, review relevant policies for:

• Government-action exclusions
• Confiscation exclusions
• Customs exclusions
• Cargo coverage
• Political-risk coverage
• Business-interruption consequences

Coverage is policy-specific.

Even if coverage appears uncertain, contractual notice requirements should be checked promptly.

Supplier and Importer Contractual Claims

The seizure may also trigger private claims.

For example:

Supplier allegation: importer caused seizure through incorrect declaration.

Importer allegation: supplier caused seizure through fake invoice or undeclared goods.

Review:

• Customs compliance warranties
• Representations
• Indemnities
• Delivery provisions
• Incoterms
• Governing law
• Arbitration agreement

Do not allow the criminal investigation to cause contractual deadlines to be missed.

30 Immediate Steps After Foreign-Owned Goods Are Seized

1. Obtain the seizure record.
2. Identify the legal basis.
3. Determine whether this is seizure or final confiscation.
4. Identify the investigation number.
5. Obtain the customs inspection report.
6. Verify the inventory.
7. Record serial numbers.
8. Identify storage location.
9. Establish ownership.
10. Preserve the sales contract.
11. Preserve invoices.
12. Preserve payment records.
13. Preserve shipping documents.
14. Preserve customs declarations.
15. Preserve customs-broker communications.
16. Identify the alleged offence.
17. Determine whether the owner is a suspect.
18. Establish innocent third-party status where applicable.
19. Determine whether technical examination is complete.
20. Determine whether samples have been taken.
21. Assess whether continued physical retention is necessary.
22. Investigate partial release.
23. Check liquidation status.
24. Determine whether an auction or disposal process has started.
25. Document deterioration.
26. Document storage and demurrage costs.
27. Preserve potential compensation claims.
28. Review customs-clearance issues separately.
29. Review contractual and insurance claims.
30. Coordinate criminal, customs and property-rights remedies immediately.

Frequently Asked Questions

1. Are goods seized by Turkish customs automatically permanently confiscated?

No. Seizure, liquidation and final confiscation are distinct concepts. The legal status of the goods must be established from the relevant decision.

2. Can a foreign company claim goods seized in a Turkish criminal investigation?

Potentially, yes. Ownership, the legal basis of seizure, the relationship between the goods and alleged offence, and whether continued retention remains necessary should be examined.

3. What if the foreign company did not participate in the alleged smuggling offence?

Good-faith third-party ownership can be highly important. Constitutional Court jurisprudence requires consideration of the connection between the owner’s conduct and the illegality and recognizes protection for good-faith owners.

4. Can Turkey confiscate property belonging to an innocent third party?

The applicable confiscation rules require careful examination of third-party good faith. The Constitutional Court has found a property-rights violation where third-party good faith was not properly assessed in a confiscation case.

5. Can part of a shipment be released while disputed goods remain seized?

Potentially, depending on the facts and legal basis. Where only a clearly separable part is disputed, the company should specifically analyze whether retaining the entire shipment remains necessary.

6. Can seized goods be sold before the criminal proceedings finally end?

Certain goods can become subject to statutory liquidation procedures. The Ministry of Trade actively liquidates goods falling within the relevant Customs Law and Law No. 5607 frameworks.

7. What if the goods are perishable?

Act immediately. Document expiry, storage conditions, deterioration and market value, and assess available procedures before the goods lose their commercial value.

8. Does lifting criminal seizure mean the goods can immediately enter the Turkish market?

Not necessarily. Customs duties, permits, product-safety rules, technical regulations or other import requirements may remain outstanding.

9. Can prolonged seizure violate property rights?

Potentially, depending on the circumstances. Duration, investigative necessity, owner conduct, available remedies and the burden imposed on the owner are relevant to proportionality. The Constitutional Court has addressed prolonged seizure within its property-rights jurisprudence.

10. What should a foreign company do first?

Determine whether the goods are held, criminally seized, subject to liquidation or finally confiscated. Then establish ownership, obtain the relevant decisions, identify the exact alleged offence and immediately assess the appropriate criminal and customs remedy.

Legal Assistance for Foreign Companies Facing Seizure and Confiscation in Turkey

Foreign-owned goods caught in a Turkish customs or criminal investigation can create several simultaneous problems: the company may need to defend against a smuggling allegation, prove ownership, prevent liquidation, seek release of lawful goods, challenge confiscation and preserve substantial commercial claims.

Fırat Fesih Kaya Law Office provides legal assistance to foreign companies, multinational groups, foreign suppliers, importers, exporters, investors and third-party owners whose cargo, machinery or commercial property has been seized or made subject to confiscation or liquidation proceedings in Turkey.

Lawyer Fırat Fesih Kaya assists foreign clients with customs seizure disputes, Law No. 5607 investigations, innocent third-party ownership claims, applications concerning the return of goods, confiscation disputes, liquidation risks, customs proceedings and the preservation of compensation and contractual claims.

Early intervention is particularly important when an entire container has been seized although only part is disputed, where high-value machinery belongs to a foreign parent or supplier, where perishable goods are deteriorating, or where the property may enter a liquidation or auction process before the underlying criminal dispute is finally resolved.

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. The remedies available for seized, liquidated or confiscated property depend on the exact statutory basis, procedural stage, ownership structure, alleged offence, nature of the goods and circumstances of the individual case.