Technical Assistance Fee Paid Abroad: Is It Included in Turkish Customs Value? (2026 Updated Guide)

Is a technical assistance fee paid abroad included in Turkish customs value? Learn how engineering, design, installation, maintenance, know-how and post-import technical services are treated in Turkey.

A Turkish importer may purchase machinery, equipment, components or industrial goods from a foreign supplier and separately pay the supplier—or another foreign company—for engineering, installation, commissioning, design, know-how, training or technical assistance. The existence of a separate invoice does not by itself determine whether the payment forms part of the customs value. The decisive question is the economic and contractual nature of the payment.

Under Turkey’s customs valuation framework, certain engineering, development, artwork, design, plans and sketches undertaken outside Turkey and necessary for production of the imported goods can be added to transaction value when the statutory conditions are satisfied. Conversely, charges for construction, erection, assembly, maintenance or technical assistance undertaken after importation, when separately distinguished from the price of the goods, are among the expenses that are not included in customs value.

For foreign suppliers and Turkish importers, the distinction can be financially significant because an incorrect valuation can later produce additional customs duties, import taxes, interest-related exposure and administrative penalties.

What Is Customs Value in Turkey?

Customs value is the value determined under Customs Law No. 4458 and the Customs Regulation for customs-tariff and related purposes. The primary valuation method is transaction value: essentially, the price actually paid or payable for goods sold for export to Turkey, subject to the legally required adjustments.

The fact that the importer makes additional payments outside the commercial invoice therefore requires further analysis.

Is Every Technical Assistance Fee Added to Customs Value?

No.

A payment being described as a “technical assistance fee,” “engineering fee,” “consultancy fee” or “service fee” does not automatically make it dutiable.

Customs authorities should examine what service was actually supplied, when and where it was performed, its relationship with the imported goods and whether it falls within a legally prescribed addition to the transaction value.

The Contract Is More Important Than the Invoice Title

Companies sometimes believe that customs exposure can be avoided simply by issuing two invoices:

one invoice for machinery and another invoice for technical services.

That approach is insufficient.

Customs authorities can examine the underlying contracts and commercial relationship to determine the true economic character of the second payment.

Technical Assistance Performed After Importation

This is one of the most important distinctions.

The Ministry of Trade states that, provided they are separately distinguished from the price actually paid or payable, charges relating to construction, erection, assembly, maintenance or technical assistance undertaken after importation of goods such as industrial plants, machinery or equipment are not included in customs value.

Accordingly, a genuine post-import installation or maintenance service may receive different customs treatment from engineering necessary to manufacture the imported machine.

Example: Installation of Imported Machinery in Turkey

Assume a Turkish factory purchases industrial machinery for EUR 1 million and separately pays the foreign manufacturer EUR 80,000 for technicians to travel to Turkey, install the machinery and perform commissioning after importation.

The EUR 80,000 should not automatically be added to customs value merely because it is paid to the foreign seller.

The importer should examine whether the amount genuinely relates to post-import installation or technical assistance and whether it is separately identifiable.

Separately Identifying the Service Is Critical

Where the sales agreement combines equipment, engineering, installation and maintenance into a single lump-sum price, valuation becomes more complicated.

Contracts should therefore identify legitimate post-import services separately where commercially appropriate.

The allocation must be genuine and supported by objective evidence.

Artificial Allocation Creates Risk

An importer should not artificially reduce the stated price of imported machinery and shift part of the actual purchase price into a fictitious “technical assistance” invoice.

If Customs concludes that the service payment actually represents part of the consideration for the imported goods, separating invoices will not necessarily protect the importer.

Engineering Performed Abroad Can Be Different

Turkey’s customs valuation rules specifically identify certain engineering, development, artwork, design work, plans and sketches performed outside the country of importation and necessary for production of the imported goods as potentially relevant additions where they are supplied directly or indirectly by the buyer free of charge or at reduced cost for use in producing and selling the imported goods for export.

This is conceptually different from a technician arriving after importation to install equipment.

Buyer-Supplied Engineering Can Be an “Assist”

Suppose the Turkish buyer purchases engineering services abroad and supplies those designs to a foreign manufacturer free of charge so that specialized machinery can be produced.

If the engineering is necessary for production of the imported machinery and the statutory conditions are satisfied, an appropriate apportioned value may need to be added to customs value.

The fact that the payment was made to an engineering company rather than directly to the manufacturer does not automatically eliminate the valuation issue.

Engineering Performed in Turkey Requires Separate Analysis

The statutory treatment of engineering and design used in manufacturing specifically distinguishes work undertaken outside the country of importation. Accordingly, where engineering work is performed in Turkey, the valuation analysis should not simply assume that it is equivalent to foreign engineering.

The precise facts and contractual structure remain important.

Design Fees Can Be Dutiable in Certain Circumstances

Industrial drawings, plans, sketches and engineering specifications may become relevant where they are necessary to manufacture the imported goods and are supplied by the buyer under the conditions contemplated by the valuation rules.

The importer should identify who commissioned the design, who paid for it, where it was performed and how it was used.

Research and Development Requires Careful Analysis

A broad “R&D fee” can cover many different activities.

Some may concern development necessary to produce the imported goods. Others may concern general research, future products or activities unrelated to the particular imported merchandise.

A blanket treatment of the entire payment can therefore be incorrect.

Apportionment May Be Necessary

Where a foreign engineering project supports several products or shipments, it may be necessary to allocate the relevant value appropriately rather than add the entire fee to one customs declaration.

Turkey’s valuation rules require additions under Article 27 to be based on objective and quantifiable data.

Technical Assistance Can Sometimes Be a Royalty Issue

A payment described as technical assistance may in substance involve know-how, patents, manufacturing processes or other intellectual-property rights.

The Ministry of Trade describes royalties and licence fees broadly enough to include payments relating to patents, designs, know-how, models, trademarks, registered designs, copyright and manufacturing processes.

The importer should therefore examine whether the payment is actually for a service, intellectual-property right or combination of both.

Royalty Treatment Has Separate Conditions

Under the customs valuation framework, a royalty or licence fee is added under the relevant rule where, among other requirements, it relates to the imported goods and must be paid as a condition of sale, to the extent not already included in the price.

Calling the payment a “technical fee” does not prevent Customs from examining these conditions.

Know-How Agreements Require Particular Attention

A foreign supplier may sell machinery for EUR 2 million and separately charge EUR 200,000 for proprietary manufacturing know-how.

The customs treatment cannot be determined merely by noting that there are two agreements.

Questions include whether the know-how relates to the imported machinery, whether payment is required for the sale, whether it concerns post-import production activities and whether the amount falls within another customs valuation rule.

Training Fees May Be Different

Employee training provided after importation may be distinguishable from engineering necessary for manufacturing the imported goods.

The importer should document where training occurred, who participated, what was taught and whether purchase of the imported goods was conditional upon the payment.

Maintenance Agreements Should Be Separately Documented

A genuine post-import maintenance agreement may fall outside customs value when the statutory requirements are met.

However, an unusually large “maintenance fee” paid upfront to the seller can attract scrutiny if its commercial substance is unclear.

Remote Technical Support Can Create Difficult Questions

Modern industrial contracts increasingly include remote diagnostics, software support and technical assistance delivered from abroad after the machine enters Turkey.

The analysis should focus on the nature and timing of the service rather than merely the physical location of the technician.

Software and Technical Assistance Should Be Separated

Where imported machinery contains software and the importer also purchases software licences, updates or technical support, each payment should be analyzed separately.

A single “technology package” can contain several components receiving different customs valuation treatment.

The Identity of the Recipient Is Not Decisive

The fee may be paid to the seller, a parent company, an affiliate or an independent engineering company.

The customs question is not resolved solely by identifying who receives the money.

The contractual and economic relationship with the imported goods must be examined.

Related Companies Face Additional Scrutiny

A Turkish subsidiary importing machinery from its foreign parent may separately pay the group for technical services.

Customs may examine whether the technical-service agreement reflects genuine services or whether the payment effectively forms part of the consideration associated with the imported goods.

Transfer Pricing and Customs Valuation Are Different

A technical assistance payment may be acceptable for corporate tax or transfer-pricing purposes without automatically producing the same result for customs valuation.

The company should therefore perform a separate customs analysis.

Post-Clearance Audits Can Discover Historical Payments

The valuation issue may arise years after the goods were released.

Auditors may compare customs declarations with accounting ledgers, bank transfers, intercompany agreements, royalty accounts and service invoices.

A company that declared only the commercial invoice value may then be asked to explain separate foreign payments.

Accounting Descriptions Can Trigger Questions

Ledger descriptions such as “technical fee,” “engineering,” “know-how,” “management service,” “licence,” “commission” or “project support” may lead auditors to investigate whether amounts should have affected customs value.

Accounting and customs teams should therefore communicate before declarations are filed.

Review the Master Supply Agreement

The first document to examine is usually the main purchase contract.

Determine whether technical assistance is optional or mandatory, whether the goods can be purchased without the service, when the service is performed and how the price is allocated.

Review Separate Service Agreements Together

A service agreement should not be analyzed in isolation if it forms part of the same commercial transaction.

Customs authorities may examine purchase agreements, side letters, licence contracts, technical-support agreements and intercompany arrangements together.

Examine the Timing of the Payment

A fee paid after importation is not automatically excluded.

Likewise, a fee paid before importation is not automatically included.

Timing is relevant evidence, but the underlying legal nature of the payment is more important.

Preserve Proof of Post-Import Services

If the importer argues that the fee concerns installation or technical assistance after importation, retain evidence such as technician travel records, work reports, commissioning certificates, timesheets, maintenance records, correspondence and service acceptance documents.

These can demonstrate what was actually performed.

Customs Value Additions Require Objective and Quantifiable Data

The Ministry of Trade expressly states that additions under Article 27 must be based on objective and quantifiable data and that no additions may be made beyond those provided for in Article 27.

This can become important where Customs attempts to add a broad service payment without properly identifying the dutiable element.

Mixed Fees Should Not Automatically Be Added in Full

Suppose a EUR 300,000 technical agreement includes pre-production engineering, post-import installation, employee training and three years of maintenance.

Treating the entire EUR 300,000 as one indivisible customs-value element may fail to reflect the actual services.

The company should determine whether a defensible allocation can be made using objective evidence.

What If Customs Adds the Technical Fee After an Audit?

The importer should obtain the formal additional assessment and identify precisely why Customs considers the payment dutiable.

The response should address the legal category relied upon: part of the price actually paid or payable, an assist, a royalty or another permitted valuation adjustment.

Review Associated Penalties Separately

An additional customs duty assessment and an administrative penalty should not automatically be treated as the same legal issue.

Even where Customs successfully establishes a valuation adjustment, the legal and factual basis of any penalty should be analyzed independently.

Historical Declarations Should Be Mapped

If the same technical-assistance arrangement covered multiple imports, identify every potentially affected declaration.

Prepare a matrix showing import date, declaration, goods, invoice value, service payment, contract, allocation methodology and customs treatment.

Do Not Assume Every Import Is Equally Exposed

A technical agreement may have changed over time.

Some imports may have occurred before the agreement, some may involve different products and others may relate to services performed entirely after importation.

Declaration-specific analysis can materially reduce overbroad exposure.

Foreign Supplier Cooperation Is Important

The supplier should provide contracts, invoices, engineering records and explanations identifying what services were performed.

A short letter stating that the payment “does not relate to the goods” is usually less persuasive than detailed contemporaneous documentation.

Contract Drafting Can Prevent Future Disputes

International supply contracts should clearly distinguish the price of goods from legitimate installation, commissioning, maintenance, training, engineering and intellectual-property payments.

The contractual distinction must correspond to commercial reality.

Do Not Use Artificially Low Goods Prices

Splitting a transaction into a low equipment price and inflated service fee purely to reduce customs value creates significant risk.

Customs valuation focuses on substance, not invoice formatting.

What Should Foreign Companies Do Before Importation?

Before shipping high-value machinery or equipment to Turkey, companies should review all related payments.

The review should cover the purchase agreement, technical-assistance contract, licence agreement, engineering agreement, intercompany arrangements and any buyer-supplied designs or tools.

Immediate Customs Valuation Checklist

A company facing a technical-assistance fee should determine who receives the payment, what service is supplied, where and when it is performed, whether it is necessary for production of the imported goods, whether the buyer supplied it to the manufacturer, whether it involves intellectual property, whether payment is connected with the sale, whether it is separately identified, and whether a mixed payment can be allocated objectively.

Frequently Asked Questions

Is every technical assistance fee paid abroad included in Turkish customs value?

No. The nature of the service and its relationship with the imported goods must be examined.

Are post-import installation fees included?

Charges for construction, erection, assembly, maintenance or technical assistance undertaken after importation are excluded where the applicable requirements are satisfied and the amounts are separately distinguished.

Can foreign engineering costs be included?

Potentially. Engineering, development, artwork, design work, plans and sketches undertaken abroad and necessary for production can constitute an addition where the statutory conditions concerning buyer-supplied assists are satisfied.

Does issuing a separate service invoice keep the fee outside customs value?

Not automatically. Customs can examine the commercial substance of the transaction.

What if the fee includes both engineering and installation?

The components should be analyzed separately. Where legally appropriate, allocation should be supported by objective and quantifiable data.

Can know-how payments be treated as royalties?

Potentially. Customs rules concerning royalties include payments associated with know-how and manufacturing processes, subject to the applicable valuation conditions.

Is technical training after importation automatically dutiable?

No automatic conclusion should be made. The service, contractual relationship, timing and connection with the imported goods should be examined.

Can Customs discover the fee during a later audit?

Yes. Separate foreign payments can become relevant during post-clearance review, particularly where accounting records and customs declarations are compared.

Can the importer challenge an additional assessment?

Potentially. The importer should examine the legal basis of the valuation adjustment, supporting evidence, calculation and applicable customs objection procedure.

What is the most important rule?

Do not decide customs value from the invoice title. Determine what the technical assistance payment actually purchases. Genuine post-import installation or maintenance can receive fundamentally different treatment from foreign engineering necessary to manufacture the imported goods or a payment that is substantively a royalty or part of the purchase consideration.

Client-Focused Legal Support for Customs Valuation Disputes

Technical assistance and engineering payments can generate significant disputes involving customs value, assists, royalties, licence fees, machinery imports, related-party transactions, post-clearance audits, additional duties and administrative penalties. Fırat Fesih Kaya Law Office assists foreign manufacturers, multinational groups and Turkish importers in analyzing cross-border technical-service payments and responding to Turkish customs valuation investigations. Lawyer Fırat Fesih Kaya provides legal assistance in reviewing supply and service agreements, separating dutiable and non-dutiable payment components, responding to post-clearance audits, challenging additional assessments and evaluating contractual responsibility between foreign suppliers and Turkish importers.

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