Customs Compares Imported Goods With Another Company’s Imports: Can the Valuation Be Challenged? (2026 Updated Guide)

Turkish Customs compares imported goods with another company’s imports and increases customs value. Learn how foreign companies and Turkish importers can challenge comparability, customs valuation, additional duties and penalties.

When Turkish Customs questions the declared transaction value of imported goods, it may examine information concerning identical or similar goods imported by other companies. A serious dispute can arise where Customs concludes that another importer’s goods entered Turkey at a higher value and uses that information to question or replace the value declared by the company under review. A higher price appearing in another customs declaration does not, by itself, necessarily establish that the importer’s declared transaction value is incorrect. The importer should examine whether the goods are genuinely comparable, whether the transactions occurred under comparable commercial conditions, whether differences in quantity, quality, brand, market level, freight, insurance, payment terms or contractual circumstances were properly considered, and whether Customs followed the applicable valuation methodology. Where an assessment is issued, Fırat Fesih Kaya Law Office and Lawyer Fırat Fesih Kaya can assist foreign manufacturers, exporters and Turkish importers in challenging the valuation methodology, additional customs duties and related penalties.

Why Does Turkish Customs Compare One Importer With Another?

Customs authorities may encounter a declared value that appears significantly different from values observed for identical or similar goods. This can lead to additional scrutiny concerning whether the declared transaction value reflects the amount actually paid or payable and whether all elements legally required to be included in customs value have been declared.

The existence of a price difference can trigger examination. It should not automatically be treated as proof that the lower value is false.

Transaction Value Should Be Examined First

A customs valuation dispute should begin with the importer’s own transaction.

The company should preserve the sales contract, purchase order, commercial invoice, bank payment records, correspondence, price lists, discounts, freight documentation, insurance records and evidence concerning any subsequent payments connected with the goods.

The objective is to demonstrate the commercial reality of the declared price.

A Lower Import Price Is Not Automatically an Incorrect Price

Two businesses can legitimately purchase apparently similar goods at different prices.

Differences may arise from annual purchasing volume, bargaining power, long-term supply agreements, distributor status, advance payment, inventory clearance, market-entry discounts, product specifications or different delivery terms.

Customs should therefore examine comparability rather than merely identifying the highest price in its database.

Are the Goods Actually Identical?

This is one of the first questions that should be asked.

Goods sharing the same tariff classification are not necessarily identical products. The importer should compare manufacturer, model, specifications, material, dimensions, grade, production technology, quality and commercial reputation.

Similar Goods Also Require Careful Analysis

Where the comparison concerns similar rather than identical goods, technical and commercial differences become even more important.

The company should identify characteristics that influence market value and explain why the comparison requires adjustment or should not be used.

The Same Tariff Code Does Not Establish the Same Value

A single tariff classification can contain products sold across a broad price range.

Industrial components, chemicals, machinery, electronics, textiles and other products may share a classification while differing substantially in quality and commercial value.

A valuation analysis based only on tariff classification may therefore require challenge.

Manufacturer Differences Can Affect Price

A branded product manufactured by an internationally recognized producer may command a different price from an equivalent product produced by a smaller manufacturer.

Brand reputation and commercial position can affect transaction prices even where products perform similar functions.

Product Quality Should Be Compared

Differences in raw materials, durability, tolerances, purity, grade, performance and certification may explain price differences.

Technical specifications should be submitted where quality is relevant.

Model Differences Can Be Critical

The importer should compare exact model and catalogue numbers.

A later-generation model, higher-capacity product or premium version should not automatically be used as a benchmark for a basic model merely because both fall within the same customs heading.

Quantity Differences Can Explain Lower Prices

A company importing 50,000 units may negotiate a substantially lower unit price than a company importing 500 units.

The quantity and commercial level of the compared transactions should therefore be examined.

Wholesale and Retail-Level Transactions Are Different

A distributor purchasing directly from a manufacturer may receive a different price from an intermediary purchasing through another trader.

The level of trade and position of the buyer in the distribution chain can materially affect price.

Long-Term Supply Agreements Can Produce Preferential Pricing

A buyer committed to minimum annual volumes may receive contractual discounts unavailable to occasional customers.

Submit the framework agreement, purchase commitments and historical transaction records where this explains the difference.

Discounts Should Be Documented

Volume discounts, early-payment discounts, promotional pricing and negotiated commercial reductions should be supported by genuine contractual and accounting records.

A discount created retrospectively after Customs begins an investigation will attract significantly greater scrutiny.

Payment Terms Matter

A transaction involving advance payment may have different pricing from a transaction involving extended credit.

The importer should document payment timing and any financing element affecting commercial negotiations.

Incoterms and Delivery Conditions Must Be Compared

Two invoice values may not be directly comparable if one transaction includes freight or insurance and another does not.

The valuation analysis should place transactions on a comparable basis.

Freight Differences Can Be Significant

Shipping costs vary by route, carrier, shipment size and market conditions.

If Customs compares values from different periods or different ports of shipment, transportation costs should be examined carefully.

Insurance Costs Should Also Be Considered

Different insurance arrangements can affect the components ultimately included in customs value.

The comparison should therefore focus on properly adjusted customs values rather than superficially comparing commercial invoice totals.

Timing Can Make Transactions Incomparable

Commodity prices, currency movements, freight rates and market demand can change rapidly.

An import made many months earlier may not provide a reliable benchmark for a transaction concluded during substantially different market conditions.

Raw-Material Prices May Explain the Difference

Where the imported product’s price is closely connected with steel, aluminum, chemicals, petroleum derivatives or another commodity, demonstrate changes in relevant input prices between the compared transactions.

Market Conditions Can Change Prices

Oversupply, factory shutdowns, excess inventory, seasonal demand or economic contraction can influence legitimate transaction prices.

Commercial context should therefore form part of the valuation defense.

Country of Production May Matter

Goods classified under the same tariff code but manufactured in different countries may have different production costs and commercial values.

Customs should not ignore meaningful differences in manufacturing circumstances when evaluating comparability.

Country of Export Is Not Necessarily Country of Manufacture

A trading company may export goods manufactured elsewhere.

The importer should distinguish the manufacturer, seller, country of origin and country of dispatch when analyzing another company’s transaction.

Related-Party Transactions Require Separate Examination

If the Turkish importer and foreign supplier are related, Customs may examine whether the relationship influenced the price.

The company should be prepared to explain the pricing methodology and provide relevant evidence supporting the commercial acceptability of the transaction value.

A Related-Party Relationship Does Not Automatically Make the Price Invalid

Corporate affiliation should not automatically be equated with undervaluation.

The factual question is whether the relationship affected the transaction price under the applicable valuation rules.

Transfer Pricing Documentation May Be Relevant

Intercompany pricing policies, transfer-pricing reports and comparable commercial transactions can potentially assist in explaining the pricing structure.

However, corporate income tax transfer pricing and customs valuation are not identical legal systems. A transfer-pricing report should therefore not automatically be assumed to resolve the customs issue.

Customs Should Explain the Comparison

Where an additional assessment relies materially on another import transaction, the importer should seek to understand the basis of the comparison.

Relevant questions include whether the comparator goods are identical or similar, when they were imported, their commercial level and whether appropriate adjustments were made.

Confidentiality Can Limit Access to Another Importer’s Information

Customs authorities may hold commercially confidential information concerning another business.

This can create procedural complexity. The importer may not necessarily receive unrestricted access to another company’s sensitive commercial records.

Nevertheless, the company should seek sufficient reasoning to understand and challenge the valuation methodology applied against it.

The Right to an Effective Defense Matters

A company should be able to understand the essential basis on which additional customs liability has been calculated.

If crucial comparator information cannot be tested at all, the procedural implications should be examined as part of the administrative objection and any subsequent judicial proceedings.

Ask Whether More Than One Comparator Exists

The importer should determine whether Customs relied on a single transaction or a broader dataset.

A single unusual import should not necessarily be treated as representative of normal commercial value.

Cherry-Picking a Higher Value Can Be Challenged

If several comparable imports exist at different prices, the methodology used to select a particular benchmark should be examined carefully.

The importer should identify lower-priced comparable transactions where available and legally usable.

Prepare a Technical Comparison Table

A strong valuation defense can include a structured comparison covering manufacturer, model, technical specifications, quality, origin, quantity, transaction date, commercial level, delivery terms and other relevant differences.

This transforms a general objection into a fact-specific valuation argument.

Foreign Manufacturer Evidence Can Be Crucial

The supplier should provide price lists, discount policies, production-cost information where appropriate, customer categories and evidence showing why the Turkish buyer received the invoiced price.

A short supplier letter merely stating that the invoice is correct may not be sufficient in a substantial valuation dispute.

Bank Payments Should Match the Commercial Transaction

Preserve SWIFT records, bank statements and other payment evidence demonstrating what was actually transferred to the foreign supplier.

Any additional payments should be identified and explained.

Customs May Investigate Indirect Payments

Payments made to third parties, manufacturers, licensors or related companies may attract scrutiny if Customs considers them connected with the imported goods.

The importer should therefore review the complete payment structure.

Royalties and License Fees May Become Relevant

If the Turkish importer separately pays royalties or license fees, Customs may examine whether any amount must be included in customs value under the applicable conditions.

This issue should be analyzed separately from the comparator-price dispute.

Assists and Buyer-Supplied Inputs Should Be Reviewed

Tools, molds, materials, designs or other items provided by the buyer may also raise valuation questions depending on the circumstances.

The company should understand every component potentially affecting customs value.

Post-Import Payments Should Be Checked

Year-end adjustments, rebates, commissions or subsequent payments can attract attention during post-clearance audits.

Their legal treatment should be analyzed according to their true commercial purpose.

A Post-Clearance Audit Can Expand the Dispute

If Customs discovers a valuation difference during an audit, authorities may review historical declarations involving the same supplier or pricing method.

The company should therefore assess its broader exposure immediately.

Review Historical Imports Before Filing the Objection

Identify declarations involving the same product, supplier and pricing structure.

Create a declaration-by-declaration matrix showing customs value, quantity, product, payment and any adjustments.

One Valuation Dispute Does Not Automatically Prove Every Historical Declaration Was Wrong

Prices and contractual terms may change over time.

Each declaration should be analyzed according to the relevant transaction rather than assuming that a finding concerning one shipment automatically applies to every previous import.

Additional Customs Duties May Be Assessed

If Customs increases the customs value, the change can affect customs duties and other import taxes calculated by reference to customs value.

The financial exposure should therefore be calculated comprehensively.

Penalties Should Be Analyzed Separately

An additional customs debt and an administrative penalty are related but legally distinct issues.

The importer should examine the legal basis, calculation and factual requirements of each decision separately.

A Valuation Difference Does Not Automatically Mean Fraud

A genuine disagreement concerning comparability, discounts, related-party pricing or valuation methodology should not automatically be characterized as intentional undervaluation.

The company’s original documentation and compliance process may become important in defending against penalty allegations.

Customs Broker Responsibility Should Be Reviewed

Determine what information the importer provided to its customs broker and how the declaration was prepared.

Where the broker lacked information concerning payments, discounts or contractual arrangements, internal compliance procedures may need improvement.

Foreign Supplier Liability May Also Arise

If the foreign exporter supplied false invoice information, concealed additional payments or provided inaccurate valuation data, contractual claims may arise.

Review warranties, indemnities and customs-cooperation obligations in the supply contract.

Protect the Customs Objection Deadline

Where Turkish Customs issues a formal additional assessment or penalty decision, the importer should immediately identify the applicable administrative objection period.

For decisions falling within the general customs objection framework, the short period under Article 242 of the Customs Law can be critical.

Do not allow informal discussions with Customs to consume the formal challenge period.

What Should the Objection Include?

The objection should identify the disputed assessment and explain why the comparator transaction is not legally or commercially comparable.

Attach invoices, contracts, payment records, technical specifications, quantity information, discount evidence and other supporting documentation.

Technical Expert Evidence May Help

Where goods differ in composition, grade, quality or performance, an independent technical report may help demonstrate why another company’s imported product is not an appropriate comparator.

Accounting Expert Evidence May Also Be Useful

Complex pricing structures may require accounting analysis showing how discounts, payments and contractual adjustments operated.

The evidence should remain connected with actual books and records.

What If Customs Rejects the Objection?

The importer should evaluate judicial remedies before the competent administrative judiciary according to the applicable procedural framework.

The litigation file should contain both the legal valuation argument and the technical and commercial evidence demonstrating why the comparison is defective.

Can Paid Duties Be Recovered?

If additional duties have already been paid and the valuation assessment is later overturned, the importer should evaluate the applicable repayment procedure and related requirements.

Payment should not automatically be treated as acceptance of the substantive valuation position.

Review Future Shipments Immediately

If the same supplier continues exporting goods to Turkey, determine whether future declarations will face the same valuation issue.

Continuing to use a disputed methodology without preparation can multiply exposure.

Consider a Pre-Import Valuation Compliance File

For recurring imports, maintain a file containing the supply agreement, pricing formula, discount policy, payment structure, technical product information, freight arrangements and any relevant related-party analysis.

This can significantly improve the company’s ability to respond to future questions.

Immediate Defense Strategy

When Turkish Customs compares an importer’s goods with another company’s imports and increases customs value, the importer should immediately obtain the formal assessment, protect the objection deadline, identify the comparator methodology, verify whether the products are genuinely identical or similar, analyze differences in quantity, quality, commercial level, timing, delivery conditions and manufacturer, preserve payment evidence, obtain foreign supplier pricing records, review related-party issues and historical declarations, and prepare a technical and commercial comparison supporting the declared transaction value.

Frequently Asked Questions

Can Turkish Customs compare my goods with another importer’s goods?

Comparable imports may become relevant under the applicable customs valuation methodology, but the legal conditions and actual comparability of the transactions must be examined.

Does a higher price paid by another importer prove that my invoice is too low?

No. Different companies can legitimately pay different prices because of quantity, commercial level, discounts, specifications, payment terms and other factors.

Are goods with the same tariff code automatically identical?

No. A tariff heading can contain products with substantially different specifications, quality and commercial values.

Can volume discounts justify a lower customs value?

Potentially. Genuine discounts should be supported by contracts, purchasing volumes, invoices and payment records.

What if the foreign supplier and Turkish importer are related?

Customs may examine whether the relationship influenced the price. The existence of the relationship itself should not automatically be equated with an invalid transaction value.

Can Customs rely on confidential information from another importer?

Customs may possess protected commercial information. The procedural question is whether the affected importer receives sufficient information concerning the basis of the assessment to exercise its defense rights effectively.

Can Customs assess a penalty as well as additional duty?

Potentially, depending on the circumstances and applicable provisions. The additional customs debt and penalty should be challenged on their respective legal grounds.

Should previous imports be reviewed?

Yes. A valuation dispute may lead to scrutiny of earlier declarations using the same supplier or pricing method.

Can the importer challenge the assessment in court?

Where the administrative objection is unsuccessful, judicial remedies may be available before the competent administrative judiciary under the applicable customs procedure.

What is the strongest defense against an incorrect comparison?

Demonstrating that the declared price reflects the genuine commercial transaction and showing, with technical and commercial evidence, why the other company’s imports are not directly comparable or require material adjustments.

Client-Focused Legal Support for Turkish Customs Valuation Disputes

Customs valuation disputes involving comparator imports can result in additional customs duties, import taxes, administrative penalties, post-clearance audits and historical declaration exposure. Fırat Fesih Kaya Law Office assists foreign manufacturers, exporters, foreign-owned companies and Turkish importers facing customs valuation disputes in Turkey. Lawyer Fırat Fesih Kaya provides legal assistance in reviewing comparator transactions, defending transaction value, preparing customs objections, coordinating technical and accounting evidence, challenging additional assessments and penalties, and pursuing administrative litigation where necessary.

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+90 312 434 22 22

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