Trademark License Fees and Customs Value in Turkey: Risks for International Brands — 2026 Current Guide

trademark licence fees included in customs value in Turkey? Learn the condition-of-sale test, product connection, royalty allocation, audit risks and legal remedies for international brands in 2026.

International brands frequently license trademarks to Turkish distributors, manufacturers or group companies. The licensee may import branded products, components or packaging and pay a royalty to a foreign parent company or intellectual-property owner.

Turkish Customs may ask whether that trademark licence fee must be added to the customs value of imported goods. The answer is not automatic. The payment must generally relate to the imported goods, be paid directly or indirectly by the buyer and be a condition of sale for export to Turkey. It must also be separate from the invoice price and capable of objective calculation.

The Turkish Ministry of Trade explains the treatment of royalties and licence fees in its official customs valuation guidance.

When Is a Trademark Fee Added to Customs Value?

A trademark licence fee may generally be added where:

1. It relates to the imported goods;
2. The buyer must pay it directly or indirectly;
3. Payment is a condition of sale;
4. It is not already included in the invoice price;
5. The amount can be determined using objective and quantifiable data.

All elements must be assessed together. A payment to a foreign brand owner is not automatically included merely because the importer is a subsidiary, distributor or franchisee.

What Does “Related to the Imported Goods” Mean?

A trademark fee is more likely to be connected to imported goods where:

• The mark appears on the imported products;
• The imported goods cannot be sold under the brand without payment;
• The supplier is required to sell only branded products;
• The royalty is calculated by reference to imported units or sales;
• The brand owner controls the approved supplier;
• The imported products are manufactured according to the brand owner’s specifications;
• The royalty is linked to the right to use the mark on the goods.

A fee may be less likely to form part of customs value where it relates solely to:

• Domestic advertising;
• Retail-store operation;
• General brand promotion;
• Local marketing;
• Post-import services;
• Products manufactured entirely in Turkey;
• Unrelated product lines;
• A separate franchise service.

The contract and actual business practice must be reviewed together.

The Condition-of-Sale Test

The condition-of-sale element is often the most disputed issue.

Customs may consider a trademark fee a condition of sale where:

• The foreign supplier will not sell without the licence;
• The parent company controls both the trademark and the supplier;
• The sales agreement refers to the licence obligation;
• The supplier’s price assumes that the royalty will be paid separately;
• The importer cannot obtain the products from the approved supplier without paying the fee;
• The licence agreement allows shipments to be stopped if royalties are unpaid.

The importer may argue against inclusion where:

• It can buy the same products from unrelated suppliers;
• The supplier would sell the goods without the trademark licence;
• The fee is payable for domestic use after importation;
• The agreement is independent from the purchase contract;
• The fee is calculated only on domestic retail sales;
• The payment concerns marketing or franchise services rather than imported goods.

No single contractual phrase is decisive. Customs may examine the economic reality of the relationship.

Trademark Fees Paid to a Foreign Parent Company

Payments to a foreign parent company receive careful scrutiny because the parent may:

• Own the trademark;
• Control the Turkish importer;
• Control the foreign supplier;
• Set product prices;
• Approve manufacturing locations;
• Receive royalties and other group payments;
• Determine distribution rights.

The group relationship does not automatically make the payment dutiable. The importer should explain:

• Which entity owns the mark;
• Which entity receives the payment;
• Which products are covered;
• Whether the fee relates to imported or domestic goods;
• How the amount is calculated;
• Whether payment is required for the sale;
• Whether the supplier’s invoice already includes the fee.

Trademark Fees and Branded Components

The treatment may differ depending on what is imported.

Examples include:

• Finished branded products;
• Unbranded components later sold under a mark;
• Packaging bearing a trademark;
• Spare parts;
• Private-label goods;
• Licensed merchandise;
• Promotional items;
• Raw materials used in branded products.

A trademark payment linked to finished imported products is more likely to attract attention than a general corporate brand fee. However, the importer should conduct a product-specific analysis rather than rely on general assumptions.

Distribution, Resale and Reproduction Rights

A payment for distribution or resale may not be added where it is not a condition of the sale for export to Turkey and is separately connected to domestic activity.

A payment for the right to reproduce imported goods in Turkey may also require separate analysis. The importer should distinguish between:

• The right to use a trademark on imported goods;
• The right to reproduce or manufacture goods in Turkey;
• The right to distribute products;
• The right to resell products;
• Domestic advertising;
• Franchise support;
• Post-import services.

Combining these rights in one royalty invoice makes customs analysis more difficult. Separate agreements and separate accounting codes are strongly recommended.

How Are Trademark Royalties Calculated?

Trademark fees may be based on:

• Net sales;
• Gross sales;
• Imported units;
• Retail turnover;
• Wholesale turnover;
• Product category;
• Territory;
• A fixed annual amount;
• A minimum guaranteed payment;
• A percentage plus fixed fee.

If one royalty covers imported goods, Turkish-manufactured goods and unrelated services, the importer should prepare an allocation methodology.

Possible allocation factors include:

• Imported-product turnover;
• Number of imported units;
• Net sales by product;
• Manufacturing volume;
• Product category;
• Territory;
• Contractual allocation.

The calculation should be supported by sales reports, invoices, accounting records and product lists.

Documents Turkish Customs May Request

A complete trademark-royalty file should contain:

• Trademark licence agreement;
• Purchase and supply contracts;
• Franchise or distribution agreement;
• Royalty invoices;
• Payment records;
• Trademark registration documents;
• Product lists;
• Product photographs;
• Sales reports;
• Import declarations;
• Supplier invoices;
• Accounting entries;
• Allocation calculations;
• Transfer-pricing documentation;
• Marketing and advertising agreements;
• Evidence of post-import services;
• Correspondence with the brand owner.

The importer should maintain a clear link between each payment and the products or services to which it relates.

Common Compliance Errors

International brands often create customs risk by:

• Using a single royalty for all products;
• Failing to separate imported and domestic sales;
• Describing every payment as “brand royalty”;
• Omitting the fee from customs declarations;
• Including post-import services without analysis;
• Ignoring free-of-charge branded packaging;
• Failing to update contracts after a business-model change;
• Providing inconsistent explanations to tax authorities and Customs;
• Treating transfer-pricing documentation as sufficient by itself;
• Paying royalties through an affiliate without documenting the arrangement.

The importer should review the licence agreement before the first shipment and whenever prices, products, suppliers or territories change.

Customs Audit and Digital Data in 2026

In 2026, Turkish Customs increasingly compares:

• Royalty payments;
• Bank transfers;
• E-invoices;
• E-ledgers;
• ERP records;
• Import declarations;
• Sales reports;
• Licence agreements;
• Transfer-pricing files;
• Group accounting records.

The importer should maintain a digital royalty register showing the covered products, calculation formula, payment dates and customs treatment.

Electronic records do not remove the obligation to preserve the underlying agreements and calculations.

Financial and Penalty Risks

If Customs concludes that a trademark fee should have been included, the importer may face:

• Additional customs duty;
• Import VAT on the revised customs base;
• Additional customs duties;
• Interest;
• Administrative customs penalties;
• Reassessment of earlier imports;
• Storage and financing costs.

Under the general framework of Customs Law No. 4458, under-assessed customs duties may generally be notified within three years from the date the customs debt arose, subject to statutory exceptions.

If Customs alleges knowingly concealed royalties or falsified declarations, the matter may receive more serious administrative or criminal scrutiny. A disagreement about the legal treatment of a licence fee does not automatically prove fraud.

How Can the Importer Challenge a Trademark-Royalty Assessment?

The importer may argue that:

• The fee does not relate to imported goods;
• It concerns domestic advertising or services;
• It is not a condition of sale;
• The supplier would sell without the licence;
• The amount was already included in the invoice price;
• The fee covers Turkish-manufactured or unrelated goods;
• The allocation used by Customs is incorrect;
• The calculation lacks objective data;
• Post-import charges were improperly included;
• The penalty or interest calculation is wrong.

Under Article 242 of Customs Law No. 4458, an objection is generally filed within 15 days from lawful notification of the customs decision.

If the objection is rejected, proceedings may be brought before the competent tax court within the applicable procedural period. An objection or lawsuit does not automatically suspend collection. A separate suspension-of-execution request may be necessary where immediate payment would cause serious and difficult-to-repair harm.

Settlement may be available for certain customs debts and penalties. The importer should compare settlement with litigation and any contractual recovery from the brand owner or supplier.

2026 Compliance Checklist for International Brands

International brands should:

1. Map every trademark and licence payment.
2. Identify the products and territories covered.
3. Separate imported goods from domestic production.
4. Analyse the condition-of-sale relationship.
5. Maintain product-specific royalty calculations.
6. Keep separate accounts for advertising and services.
7. Reconcile royalty payments with bank and ERP data.
8. Coordinate tax and customs positions.
9. Review agreements after operational changes.
10. Prepare for post-clearance verification.
11. Preserve records for the required legal period.
12. Obtain customs-law advice before a formal disclosure.

Frequently Asked Questions (FAQ)

1. Are trademark licence fees always included in Turkish customs value?

No. Inclusion depends on the connection with imported goods, the condition-of-sale test and whether the payment is already included in the invoice.

2. Does payment to a foreign parent company automatically create customs duty?

No. A parent-company relationship alone is not sufficient.

3. Can a trademark fee for domestic advertising be excluded?

Possibly, if it is genuinely separate from the imported goods and not a condition of sale.

4. What if the royalty covers imported and locally manufactured products?

The importer should prepare a reasonable and documented allocation separating the relevant portions.

5. Can distribution royalties be added?

Only where the legal conditions for inclusion are satisfied. Payments relating solely to domestic distribution may be treated differently.

6. Can a trademark fee for reproduction in Turkey be included?

The right to reproduce goods in Turkey requires separate analysis and may not be treated in the same way as a royalty for imported products.

7. What records are most important?

The licence agreement, purchase contract, royalty formula, product list, payment records, sales reports and allocation calculation are usually central.

8. Can Customs audit trademark royalties after clearance?

Yes. Post-clearance audits may result in additional duty, import VAT, interest and penalties.

9. What is the objection deadline?

An objection is generally filed within 15 days from lawful notification under Article 242 of Customs Law No. 4458.

10. Can an international brand challenge the Turkish assessment directly?

The Turkish importer generally faces the customs debt, while the brand owner supports the defence and may pursue contractual remedies.

This article is intended for general informational purposes only. To avoid any loss of rights, we recommend consulting your lawyer regarding your specific circumstances.

Legal Support for Trademark and Customs Value Disputes

Fırat Fesih Kaya Law Office advises international brands, Turkish licensees, importers, distributors, manufacturers and foreign parent companies on trademark royalties and customs valuation.

Lawyer Fırat Fesih Kaya can assist with licence-agreement analysis, condition-of-sale assessments, royalty allocation, transfer-pricing coordination, customs audits, additional-duty disputes, administrative objections and tax-court proceedings.

For urgent legal support:

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