Turkish Customs replaces an importer’s declared price with a higher comparable value. Learn when comparable pricing can be challenged, what adjustments Customs should consider, and which evidence importers should submit.

Turkish Customs may question the declared value of imported goods and rely on the transaction value of identical or similar goods to determine a higher customs value.

For example:

Importer’s declared price: USD 80 per unit

Customs comparable price: USD 125 per unit

The difference may result in substantial additional customs duties, import taxes, late-payment amounts and administrative penalties.

However, the fact that Customs has identified another import at a higher price does not automatically mean that the higher value is legally correct.

Turkey’s customs valuation framework applies valuation methods sequentially. The transaction-value method is examined first. Only where customs value cannot properly be determined under that method should the subsequent valuation methods be considered.

An importer facing a higher comparable value should therefore investigate two separate issues:

Was Customs entitled to move away from the importer’s transaction value?

and

Was the comparable transaction selected and adjusted correctly?

1. Customs Cannot Simply Prefer a Higher Price

The existence of another shipment imported at a higher price does not by itself establish the customs value of the disputed goods.

The valuation framework does not operate on the principle:

“Another importer paid more, therefore your goods must have the same value.”

Customs must apply the legally prescribed valuation methodology.

2. First Ask Why the Transaction Value Was Rejected

Before analyzing the comparable price, determine why Customs did not accept the price actually paid or payable.

Possible concerns may include:

• Related buyer and seller;
• Unexplained discount;
• Additional payment to the supplier;
• Royalty or licence fee;
• Undeclared assist;
• Unusual payment arrangement;
• Doubts concerning the commercial documents.

The importer should address the reason for rejecting transaction value before focusing exclusively on the comparable shipment.

3. The Valuation Methods Have an Order

The Ministry of Trade identifies six principal customs valuation methods:

1. Transaction value;
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 rule, the next method should not be used if the customs value can properly be determined under the preceding method.

This sequencing can be an important ground of objection.

4. Ask Customs Which Method Was Applied

The importer should determine whether Customs relied on:

Identical goods

or

Similar goods.

These concepts are not interchangeable.

The evidence required to challenge them may differ.

5. What Are Identical Goods?

Official Ministry guidance describes identical goods as goods that are the same in all respects, including physical characteristics, quality and reputation, subject to minor differences in appearance, and produced in the same country.

Therefore, ask:

• Is the model identical?
• Is the specification identical?
• Is the quality identical?
• Is the country of production identical?
• Is the commercial reputation comparable?

6. Similar Goods Are a Different Category

Similar goods need not be identical in every respect.

According to Ministry guidance, they should have similar characteristics and component materials enabling them to perform the same functions and be commercially interchangeable, with factors such as quality, reputation and trademark also relevant.

This gives importers several potential grounds for challenging an inappropriate comparison.

7. Country of Production Matters

The official definition requires attention to the country in which the goods were produced.

A comparable price should therefore not be accepted without examining the origin of the supposedly identical or similar goods.

8. Manufacturer Can Matter

Official guidance also addresses the producer of the comparable goods.

Where qualifying identical or similar goods produced by the same person are unavailable, goods produced by another person may be considered under the relevant conditions.

The importer should therefore identify the manufacturer behind the comparable transaction.

9. Model Differences Can Destroy Comparability

Two products from the same manufacturer may differ significantly.

Compare:

• Model number;
• Capacity;
• Technical performance;
• Materials;
• Features;
• Production year;
• Quality grade.

A newer or premium model should not automatically determine the value of a lower-specification product.

10. Brand Differences May Matter

Particularly under the similar-goods analysis, commercial reputation and trademark can be relevant.

A premium international brand and an unknown manufacturer may sell technically similar products at substantially different prices.

That commercial difference should not be ignored.

11. Quantity Is One of the Most Important Adjustments

Suppose Customs compares:

Comparable transaction: 100 units at USD 125 each

with

Importer transaction: 50,000 units at USD 80 each.

A substantial volume discount may explain much of the difference.

Official Ministry guidance states that the valuation of identical or similar goods should consider approximately the same quantity and that proven adjustments may be necessary where quantities differ.

12. Submit Evidence of Volume Discounts

Useful evidence includes:

• Annual supply agreement;
• Quantity discount schedule;
• Purchase commitments;
• Supplier correspondence;
• Historical invoices;
• Pricing formulas.

Do not merely state:

“We buy more.”

Prove the commercial effect.

13. Commercial Level Must Also Be Compared

Prices can vary significantly between:

Manufacturer → national distributor

and

Manufacturer → small wholesaler

or

Manufacturer → retailer.

Official Ministry guidance requires consideration of differences in commercial level when identical or similar transactions are compared.

14. Explain the Importer’s Commercial Position

Submit evidence showing whether the importer is:

• Exclusive distributor;
• National wholesaler;
• Industrial end user;
• Retailer;
• Strategic customer.

This can explain legitimate pricing differences.

15. Timing of the Comparable Transaction Matters

The identical- and similar-goods methods refer to transactions involving goods exported at the same or approximately the same time as the goods being valued.

A substantially older transaction may be commercially misleading where market prices changed rapidly.

16. Document Market Price Changes

Prices may fall because of:

• Raw-material price decreases;
• Technology becoming obsolete;
• Currency movements;
• Excess inventory;
• New competitors;
• New product generations.

Contemporaneous market evidence can therefore be important.

17. Freight Differences Must Be Adjusted

Suppose one transaction involves:

Air freight

while another involves:

Sea freight.

The transportation costs may be dramatically different.

Official guidance provides for adjustments where significant differences arise from transportation distance and mode.

18. Insurance Differences Should Also Be Reviewed

Determine whether the compared prices include equivalent insurance arrangements.

A comparison should be made on a consistent valuation basis.

19. Incoterms Can Explain Apparent Price Differences

Compare:

• EXW;
• FCA;
• FOB;
• CIF;
• DAP;
• DDP.

Two invoices showing USD 100 and USD 120 may not actually reflect different goods values if one price incorporates substantially more transportation or delivery costs.

Normalize the comparison.

20. Discounts Should Be Documented

A lower transaction price may result from:

• Volume discount;
• Loyalty discount;
• End-of-season discount;
• Model discontinuation;
• Promotional pricing;
• Advance-payment discount.

Provide contemporaneous documentation showing why the discount was granted.

21. Product Condition Can Affect Price

Goods may be:

• New;
• Refurbished;
• Factory seconds;
• Overstock;
• End-of-series;
• Damaged packaging;
• Older production.

These differences can materially affect commercial value.

22. Production Year Can Be Critical

Technology products, machinery and automotive components can lose value rapidly when newer generations enter the market.

A 2024 model imported in 2026 should not automatically be valued according to a current-generation 2026 model.

23. Technical Specifications Should Be Compared Line by Line

Prepare a comparison such as:

Factor	Imported Goods	Customs Comparable
Model	A100	A150
Capacity	50 units/hour	80 units/hour
Production year	2024	2026
Warranty	1 year	3 years
Quantity	10,000	500
Commercial level	Distributor	Retail wholesaler

A table can immediately expose weaknesses in the comparable selected by Customs.

24. Customs Must Consider Proven Adjustments

Where identical or similar goods are sold at a different commercial level or quantity, official guidance permits the use of that transaction after appropriate adjustments, provided the reasonableness and accuracy of the adjustment are supported by clear evidence.

The importer should therefore propose a documented adjustment rather than merely rejecting Customs’ comparison.

25. Adjustments Can Move the Comparable Value Downward

Adjustments are not necessarily designed only to increase customs value.

Official Ministry guidance expressly contemplates adjustments that may result in an increase or decrease, provided their reasonableness and accuracy are established.

This can be particularly important for large-volume importers.

26. What If Customs Finds Several Comparable Prices?

This is an important protection.

The Ministry states that where more than one transaction value for identical goods is identified under the relevant method, the lowest of those values is used to determine customs value. The same principle is stated for qualifying similar goods.

Therefore, ask whether Customs identified more than one qualifying comparable.

27. Request the Basis of Customs’ Comparable

The importer should seek sufficient information to understand:

• Product compared;
• Country of production;
• Relevant period;
• Quantity;
• Commercial level;
• Transportation adjustment;
• Valuation method.

Without understanding the basis of the comparison, meaningful objection becomes difficult.

28. Protect Confidential Information Issues

Customs may not necessarily disclose another company’s confidential commercial information in full.

However, the importer still needs enough information concerning the valuation methodology and relevant characteristics to challenge the assessment effectively.

The objection should identify what information is necessary for the defense.

29. Related-Party Imports Require Careful Analysis

If the buyer and seller are related, Customs may scrutinize whether the relationship influenced the price.

But official Ministry guidance states that the existence of a relationship alone is not sufficient to reject transaction value.

The surrounding circumstances of the sale should be examined.

30. Submit Transfer-Pricing Evidence Where Relevant

Useful documents may include:

• Transfer-pricing report;
• Group pricing policy;
• Comparable uncontrolled transactions;
• Profit analysis;
• Supplier cost data.

However, transfer-pricing documentation and customs valuation should not be treated as identical legal analyses.

31. Check for Undeclared Payments

Before challenging Customs aggressively, verify whether the importer made additional payments involving:

• Royalties;
• Licence fees;
• Tooling;
• Moulds;
• Engineering;
• Supplier reimbursements.

Certain amounts may legitimately require inclusion in customs value.

32. Reconcile Every Payment to the Seller

Prepare:

Invoice

→ bank payment

→ accounting record

→ customs declaration.

Explain every difference.

A transparent payment trail substantially strengthens the valuation defense.

33. Challenge Arbitrary Valuation

If the case reaches the fall-back valuation method, Customs still does not have unlimited discretion.

Official Ministry guidance states that customs value under that method cannot be based on arbitrary or fictitious values, minimum customs values, the domestic price in the exporting country, or a system automatically selecting the higher of two alternative values.

34. “Higher Price” Is Not Itself a Valuation Method

This is the key principle.

The customs valuation system does not simply authorize Customs to find a higher number.

The authority should be able to explain:

Why transaction value was unavailable

→ which subsequent valuation method applies

→ why the selected goods qualify as identical or similar

→ what adjustments were made.

35. Obtain the Assessment and Calculation

Review:

• New customs value;
• Duty difference;
• Import taxes;
• Additional charges;
• Penalty calculation.

Check the mathematics as well as the legal methodology.

36. Challenge the Penalty Separately

Even where a valuation adjustment survives, any administrative penalty should be independently examined.

The Ministry’s customs-value guidance identifies significant penalties that may arise from deficient value declarations under Article 234, making it particularly important to test the precise statutory basis and calculation in each case.

37. Genuine Pricing Differences Should Be Distinguished From Concealment

There is an important factual difference between:

a legitimate volume-discount dispute

and

an undisclosed payment to the seller.

The importer should establish which type of case actually exists.

38. Review Historical Imports

If Customs increases the value of one shipment, previous declarations from the same supplier may also be examined.

Prepare a matrix containing:

Declaration date

Product

Quantity

Invoice value

Unit price

Payment

Discount

Customs status.

39. Do Not Automatically Amend Historical Declarations

First determine whether Customs’ valuation method is legally and factually correct.

Premature corrections can unnecessarily expand the company’s exposure.

40. Obtain Supplier Evidence Quickly

Ask the foreign supplier to confirm:

• Price;
• Pricing formula;
• Quantity discount;
• Commercial level;
• Product specification;
• Payment terms.

Contemporaneous supplier records are preferable to a vague letter prepared after the dispute begins.

41. Preserve Historical Price Lists

Supplier pricing changes over time.

Obtain the price list applicable when the disputed sale occurred rather than relying only on today’s prices.

42. Consider Independent Economic Evidence

For high-value disputes, independent evidence may help establish:

• Market price;
• Industry pricing;
• Volume adjustments;
• Commercial-level differences;
• Product depreciation.

The evidence should address the precise valuation methodology used by Customs.

43. Protect the Objection Deadline

A company should not spend weeks negotiating informally while the formal challenge period expires.

Record the notification date of every assessment and penalty immediately.

Prepare the substantive evidence in parallel with the procedural challenge.

44. Build a Permanent Customs Valuation File

For recurring imports, maintain:

• Sales contract;
• Pricing methodology;
• Discount schedules;
• Payment evidence;
• Comparable transactions;
• Freight records;
• Related-party analysis;
• Royalty information.

This can substantially reduce future valuation disputes.

45. Practical Strategy When Customs Uses a Higher Comparable Price

The recommended sequence is:

Identify why transaction value was rejected

→ identify the valuation method used

→ obtain information concerning Customs’ comparable

→ determine whether the goods are genuinely identical or similar

→ compare manufacturer and country

→ compare quantity

→ compare commercial level

→ compare timing

→ compare freight and Incoterms

→ document discounts

→ propose justified adjustments

→ check whether lower qualifying comparables exist

→ reconcile payments

→ challenge the additional assessment

→ challenge the penalty separately.

25-Point Comparable Price Challenge Checklist

1. Obtain the Customs assessment.
2. Identify why transaction value was rejected.
3. Identify the valuation method.
4. Identify Customs’ comparable goods.
5. Compare country of production.
6. Compare manufacturer.
7. Compare model.
8. Compare technical specifications.
9. Compare quality.
10. Compare brand and reputation.
11. Compare production year.
12. Compare quantity.
13. Compare commercial level.
14. Compare transaction dates.
15. Compare Incoterms.
16. Compare freight.
17. Compare insurance.
18. Document volume discounts.
19. Document other discounts.
20. Reconcile invoice and payments.
21. Review related-party issues.
22. Review royalties and assists.
23. Identify other qualifying comparables.
24. Calculate the correct adjustment.
25. Challenge the assessment and penalty where justified.

Frequently Asked Questions

1. Can Turkish Customs use another importer’s price to value my goods?

Potentially, where the statutory conditions for the identical- or similar-goods valuation method are satisfied. But transaction value must first be considered under the required sequential valuation framework.

2. Can Customs simply use a comparable because its price is higher?

No. The comparison must comply with the applicable valuation method. Quantity, commercial level, timing, transportation and the characteristics of the goods can be highly important.

3. What if my company imports much larger quantities?

That can be highly relevant. Official guidance provides for adjustments where comparable transactions involve different quantities, provided the adjustment is supported by appropriate evidence.

4. What if the comparable product is a different model?

The importer should challenge whether it qualifies as identical or similar goods. Technical characteristics, function, quality, reputation and commercial interchangeability may all matter.

5. Does the comparable need to come from the same country?

Official definitions of identical and similar goods require attention to production in the same country as the goods being valued.

6. What if Customs finds several comparable prices?

Where several qualifying transaction values exist under the identical- or similar-goods method, official Ministry guidance states that the lowest is used for determining customs value.

7. Can a related-party transaction still use the invoice price?

Potentially. The buyer-seller relationship alone does not automatically justify rejection of transaction value; whether the relationship affected the price is central to the analysis.

8. Can Customs use an arbitrary market price?

No. Even the fall-back method cannot be based on arbitrary or fictitious values or a system automatically selecting the higher of two values.

9. Can the importer challenge a penalty as well as the increased customs value?

Yes. The valuation adjustment and administrative penalty should be examined separately, including the legal basis and calculation of the penalty.

10. What is the strongest way to challenge a higher comparable price?

The importer should first challenge any unjustified rejection of transaction value. If Customs is entitled to use identical or similar goods, the importer should then test the comparable transaction line by line—product, manufacturer, origin, quantity, commercial level, timing, freight and discounts—and submit documented adjustments demonstrating why the higher figure should not be applied without modification.

Client-Focused Legal Support for Customs Valuation Disputes in Turkey

Customs comparable-price disputes may involve:

Rejected transaction values

Identical goods

Similar goods

Higher comparable prices

Volume and commercial-level adjustments

Related-party imports

Additional customs assessments

Post-clearance audits

and customs penalties.

Fırat Fesih Kaya Law Office assists foreign manufacturers, multinational companies and importers where Turkish Customs rejects declared transaction values and substitutes higher comparable prices.

Lawyer Fırat Fesih Kaya provides legal assistance in challenging customs valuation methodologies, analyzing identical and similar goods, preparing quantity and commercial-level adjustments, defending related-party transaction values, contesting additional assessments and penalties, and managing historical customs exposure.

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