Turkish Customs questions or rejects the invoice price of imported goods. Learn which payment, contract, accounting, pricing, transport and comparable-sale evidence importers should submit to defend the declared customs value.

When Turkish Customs considers the declared invoice price unusually low, the importer may face a customs valuation investigation, additional tax assessment and potentially administrative penalties.

A common situation is:

Supplier invoice: USD 100,000

Customs position: Comparable goods appear to be worth USD 160,000

The importer should not respond merely by saying:

“The invoice is genuine.”

The objective is to demonstrate that the declared price reflects the genuine commercial transaction and that the relevant customs-value rules support its use.

Under Turkey’s customs valuation framework, the transaction-value method is examined first. The Ministry of Trade states that the customs value is determined through six methods applied sequentially: transaction value, transaction value of identical goods, transaction value of similar goods, deductive value, computed value and the fall-back method. A later method should not be used where customs value can properly be determined under an earlier one.

1. Start With the Actual Commercial Transaction

The importer should reconstruct the transaction from beginning to end:

Purchase negotiation

→ purchase order

→ sales contract

→ invoice

→ payment

→ shipment

→ customs declaration

→ accounting entry.

The stronger the documentary chain, the easier it is to demonstrate that the invoice reflects a genuine transaction.

2. Submit the Commercial Invoice

The invoice is the starting point, but it should not be the only evidence.

Check whether it clearly identifies:

• Seller;
• Buyer;
• Invoice date;
• Invoice number;
• Goods;
• Quantity;
• Unit price;
• Total price;
• Currency;
• Delivery terms.

Any inconsistency should be explained immediately.

3. Submit the Sales Contract

A signed supply agreement can be extremely important.

It may establish:

• Agreed price;
• Pricing formula;
• Discounts;
• Quantity commitments;
• Payment terms;
• Incoterms;
• Warranty arrangements;
• Rebates;
• Relationship between the parties.

The contract helps Customs understand why the price is commercially reasonable.

4. Submit Purchase Orders and Order Confirmations

Where no comprehensive master agreement exists, provide:

• Purchase order;
• Supplier confirmation;
• Pro forma invoice;
• Order correspondence.

These documents can demonstrate that the price was agreed before Customs questioned the shipment.

5. Bank Payment Evidence Is Critical

One of the strongest forms of evidence is proof that the importer actually paid the invoiced amount.

Submit relevant:

• Bank transfer records;
• SWIFT documentation;
• Account statements;
• Payment instructions;
• Letter-of-credit documents.

The Ministry defines the price actually paid or payable broadly as the total payment made or to be made by the buyer to the seller, or for the seller’s benefit, in connection with the imported goods.

6. Reconcile the Invoice With the Payment

Customs may become suspicious if:

Invoice: USD 100,000

but

Bank transfer: USD 125,000.

The importer should explain the difference.

The additional amount might relate to:

• Another shipment;
• Freight;
• Deposit;
• Spare parts;
• Service fee;
• Previous invoice.

Prepare a payment reconciliation rather than leaving Customs to infer the reason.

7. Explain Partial Payments

Many international transactions involve:

30% advance

and

70% after shipment.

Provide evidence of both payments and connect them to the relevant invoice.

A single bank transfer showing only part of the price can otherwise create unnecessary questions.

8. Explain Consolidated Payments

A company may pay several invoices through one transfer.

Prepare a reconciliation table:

Invoice	Invoice Amount	Payment Reference	Allocated Amount
Invoice A	USD 40,000	Transfer 101	USD 40,000
Invoice B	USD 35,000	Transfer 101	USD 35,000
Invoice C	USD 25,000	Transfer 101	USD 25,000

This creates a transparent audit trail.

9. Submit Accounting Records

Internal accounting evidence can support the commercial reality of the transaction.

Relevant records may include:

• Supplier ledger;
• Purchase ledger;
• Accounts payable;
• Inventory records;
• General ledger entries.

The accounting records should correspond with the invoice and payment documents.

10. Explain Why the Price Is Lower Than Comparable Imports

A lower price is not automatically a false price.

Commercial reasons may include:

• High-volume purchasing;
• Long-term supply relationship;
• Clearance sale;
• End-of-series product;
• Older model;
• Promotional pricing;
• Market-entry discount;
• Quantity discount;
• Product defects;
• Lower specification.

The explanation should be supported by documents.

11. Document Quantity Discounts

Suppose Customs compares:

10 units purchased by another importer

with

10,000 units purchased by your company.

The prices may legitimately differ.

Provide:

• Volume discount schedule;
• Annual purchase commitment;
• Historical pricing;
• Supplier correspondence.

12. Document Long-Term Customer Discounts

A supplier may offer a strategic customer significantly lower prices than occasional purchasers.

Provide historical invoices showing the pricing relationship over time.

Consistency can strengthen credibility.

13. Document Clearance or End-of-Series Pricing

Older inventory may legitimately sell below the supplier’s ordinary price.

Evidence may include:

• Supplier notice;
• Model discontinuation announcement;
• Clearance offer;
• Inventory-age records;
• Replacement-model information.

14. Product Differences Matter

Customs may compare the imported goods with products that appear identical but actually differ.

Compare:

• Model;
• Specification;
• Material;
• Capacity;
• Production year;
• Brand;
• Quality grade.

Comparable valuation evidence should involve genuinely comparable goods.

15. Commercial Level Matters

A manufacturer selling directly to a major distributor may offer a different price from a sale to:

• Retailer;
• Small wholesaler;
• End customer.

The Ministry’s current valuation guidance expressly recognizes commercial-level and quantity differences when comparable values are examined.

16. Submit Supplier Price Lists Carefully

A supplier’s catalogue may show a list price of USD 1,000 while the importer paid USD 700.

That is not necessarily problematic.

Explain:

List price

versus

actual wholesale price

versus

negotiated contract price.

17. Submit Negotiation Correspondence

Emails exchanged before the purchase can be highly persuasive.

For example:

Supplier initially offers USD 900 per unit

→ Importer negotiates volume commitment

→ Supplier agrees to USD 700

→ Contract and invoice use USD 700.

This provides a commercially logical explanation for the final price.

18. Related-Party Transactions Require Additional Evidence

Customs may scrutinize transactions between:

• Parent and subsidiary;
• Sister companies;
• Shareholder and company;
• Other related entities.

However, the existence of a relationship does not by itself require rejection of the transaction value.

The Ministry expressly states that the existence of a buyer-seller relationship alone is insufficient to reject the transaction value. The relevant question is whether that relationship affected the price.

19. Prove That the Relationship Did Not Affect the Price

Evidence may include:

• Comparable sales to unrelated customers;
• Transfer-pricing documentation;
• Pricing policies;
• Cost-plus calculations;
• Profit analysis;
• Independent customer invoices.

The objective is to demonstrate that the price remains commercially supportable.

20. Comparable Values Can Be Important

For related-party transactions, official guidance recognizes comparisons with qualifying values involving identical or similar goods and other specified valuation benchmarks. Appropriate differences in commercial level, quantity and relevant costs should be considered.

Therefore, a superficial comparison with one unrelated import may not be sufficient.

21. Review Royalties and Licence Fees

The invoice may be genuine but still not represent the complete customs value.

Determine whether the importer separately pays:

• Trademark royalties;
• Patent royalties;
• Technology licence fees;
• Know-how fees.

Under the applicable rules, certain royalties and licence fees related to the imported goods and payable as a condition of sale may need to be added to the customs value.

22. Review Assists Supplied by the Buyer

The importer may have provided the foreign manufacturer free or discounted:

• Components;
• Moulds;
• Tools;
• Engineering;
• Designs.

Certain qualifying assists may require an appropriate amount to be added to the transaction value.

Therefore, defending the invoice price does not mean ignoring legally required additions.

23. Review Commissions

Determine whether separate payments involve:

• Buying commission;
• Selling commission;
• Brokerage.

Their customs-value treatment can differ.

The contract and invoice should identify the true nature of the payment.

24. Freight and Insurance Must Be Reconciled

Check the Incoterm.

Depending on how the transaction is structured, the invoice may or may not already include transportation and insurance costs.

Official guidance confirms that qualifying transport, insurance, loading and handling costs up to the relevant place of entry are included in customs-value calculations.

Avoid double counting.

25. Post-Import Costs Should Be Separated

Where separately identifiable, certain costs incurred after entry may not form part of customs value.

Official guidance specifically addresses matters such as post-entry transportation and certain post-import construction, installation, assembly, maintenance or technical-assistance charges.

Contracts should therefore separate goods and post-import services clearly.

26. Review Subsequent Payments to the Seller

Customs may identify transfers made after importation.

Explain whether they relate to:

• Imported goods;
• Services;
• Another shipment;
• Loan repayment;
• Technical support;
• Royalty;
• Dividend.

Unexplained payments can undermine the valuation defense.

27. Prepare a Seller Payment Ledger

For repeated imports, create a transaction-level reconciliation showing:

Invoice

→ declaration

→ payment

→ accounting entry.

This is particularly useful during post-clearance audits.

28. Avoid Unsupported Explanations

Statements such as:

“The supplier gave us a special price.”

are much weaker than:

“The supplier granted a 22% annual-volume discount under the framework agreement, reflected in the attached price schedule and negotiation correspondence.”

Evidence should support every material pricing explanation.

29. Customs Should Apply the Valuation Methods in Sequence

Where transaction value cannot lawfully be used, Customs does not have unlimited discretion to select an arbitrary value.

Official Ministry guidance confirms that the prescribed valuation methods operate sequentially and that the next method should not be used where value can properly be determined under the preceding method.

This can be central to an objection.

30. Ask Which Valuation Method Customs Used

If Customs rejects the invoice price, determine:

What method replaced it?

Was the assessment based on:

• Identical goods;
• Similar goods;
• Deductive method;
• Computed value;
• Fall-back method?

The importer cannot properly challenge the assessment without knowing its valuation basis.

31. Challenge Inappropriate Comparable Goods

If Customs relies on identical or similar goods, examine:

• Import date;
• Country;
• Manufacturer;
• Brand;
• Model;
• Quantity;
• Commercial level;
• Freight.

Official guidance requires relevant adjustments for proven differences in matters such as commercial level, quantity and transportation.

32. Timing of Comparable Imports Matters

The comparison should be connected to the relevant import period.

A market price from a substantially different period may not accurately establish the value of the disputed shipment.

Preserve historical price information.

33. Customs Cannot Simply Choose an Arbitrary Higher Price

The Ministry’s explanation of the fall-back method expressly states that customs value cannot be based on arbitrary or fictitious values or on a system requiring Customs simply to choose the higher of two alternative values.

This is an important safeguard where the invoice has been rejected.

34. Obtain the Customs Valuation Reasoning in Writing

The importer should identify:

• Why the invoice price was questioned;
• Why transaction value was rejected;
• Which alternative method was used;
• Which comparable data were relied upon;
• Which adjustments were made.

This determines the structure of the objection.

35. Respond to Customs’ Specific Concern

Do not submit hundreds of pages without addressing the actual issue.

If Customs alleges:

related-party influence

submit evidence addressing price independence.

If Customs alleges:

unexplained discount

prove the discount.

If Customs alleges:

additional payment

reconcile the payment.

36. Protect Procedural Deadlines

Once Customs issues an additional assessment or penalty, record the notification date immediately.

Do not allow negotiations with the supplier, broker or Customs office to consume the applicable objection period.

37. Challenge Additional Duty and Penalty Separately

Even if Customs successfully adjusts the customs value, the administrative penalty should be independently examined.

Ask:

• Which statutory provision applies?
• What conduct is alleged?
• How was the penalty calculated?
• Was information concealed or was there a genuine valuation disagreement?

Do not assume the penalty automatically follows every valuation adjustment.

38. Review Historical Imports

If Customs rejects the value of one shipment, it may examine previous imports from the same supplier.

Create a historical matrix showing:

Declaration

Invoice

Supplier

Declared value

Payment

Discount

Customs status.

This helps quantify exposure early.

39. Preserve Supplier Cooperation

Ask the supplier to confirm:

• Actual sales price;
• Payment terms;
• Discount;
• Pricing methodology;
• No undisclosed payment where applicable.

Supplier accounting records may also become relevant in complex disputes.

40. Obtain Independent Valuation Evidence Where Necessary

For unusual goods, the importer may need:

• Industry pricing data;
• Expert valuation;
• Manufacturer cost information;
• Independent comparable transactions.

The evidence should correspond to the valuation method actually in dispute.

41. Do Not Create Documents After the Dispute Without Explaining Them

Documents generated contemporaneously with the transaction generally carry greater evidentiary value.

If a supplier later provides an explanatory letter, it should be consistent with the historical:

• Contract;
• Invoice;
• Payments;
• Emails;
• Accounting records.

Contradictions can damage credibility.

42. Review Transfer Pricing and Customs Valuation Together

For multinational groups, transfer pricing and customs valuation can overlap but are not identical legal systems.

A transfer-pricing report can support the customs file, but it should not automatically be treated as conclusive proof of customs value.

The transaction should still satisfy customs valuation requirements.

43. Create a Customs Valuation File Before Importation

For recurring high-value transactions, maintain:

• Contract;
• Pricing methodology;
• Discount documentation;
• Relationship analysis;
• Royalty agreements;
• Assists;
• Freight arrangements;
• Comparable-sale evidence.

This can substantially reduce disruption during a later Customs inquiry.

44. The Strongest Evidence Is a Consistent Documentary Chain

The most persuasive file usually shows:

Contract price

=

Invoice price

=

Amount actually paid

=

Accounting records

with documented explanations for any difference.

The more consistent the chain, the easier it is to defend the declared value.

45. Immediate Evidence Checklist When Customs Rejects the Invoice

The importer should rapidly collect:

Commercial invoice

→ sales contract

→ purchase order

→ bank transfer/SWIFT records

→ supplier ledger

→ accounting entries

→ pricing correspondence

→ discount documentation

→ comparable sales

→ Incoterm and freight records

→ royalty/licence agreements

→ related-party evidence

→ supplier confirmation

→ Customs valuation decision

→ notification records.

25-Point Customs Valuation Evidence Checklist

1. Commercial invoice.
2. Sales agreement.
3. Purchase order.
4. Pro forma invoice.
5. Order confirmation.
6. Bank transfer records.
7. SWIFT documents.
8. Letter-of-credit records.
9. Supplier account statement.
10. Importer accounting ledger.
11. Payment reconciliation.
12. Discount agreement.
13. Pricing correspondence.
14. Supplier price list.
15. Historical invoices.
16. Comparable unrelated sales.
17. Quantity evidence.
18. Commercial-level evidence.
19. Incoterm documentation.
20. Freight invoices.
21. Insurance documents.
22. Royalty agreements.
23. Assist documentation.
24. Related-party pricing evidence.
25. Written Customs valuation decision.

Frequently Asked Questions

1. Can Turkish Customs reject an authentic commercial invoice?

Potentially, but an authentic invoice is not automatically the end of the customs-value analysis. The transaction must satisfy the applicable transaction-value requirements. Turkish rules provide a sequential valuation framework beginning with transaction value.

2. Is a low invoice price alone enough to determine a higher customs value?

A low price can trigger scrutiny, but the customs value must be determined through the applicable valuation framework rather than an arbitrary replacement figure.

3. What is the strongest evidence supporting an invoice price?

A consistent chain involving the contract, invoice, bank payment, accounting records and contemporaneous pricing documentation is particularly important.

4. What if the buyer and seller are related companies?

The relationship alone does not automatically justify rejection of the transaction value. Official Ministry guidance states that the relevant question includes whether the relationship affected the price.

5. Can quantity discounts explain a lower price?

Yes. Quantity and commercial-level differences are relevant when comparing transactions, provided the differences and necessary adjustments can be properly demonstrated.

6. Are royalties included in customs value?

Certain royalties and licence fees may require inclusion where the statutory conditions are satisfied, including their relationship to the imported goods and payment as a condition of sale.

7. Can Customs use another importer’s price?

Comparable transactions can be relevant under the prescribed valuation methods, but differences such as quantity, commercial level and transportation may require adjustment.

8. Can Customs simply use the highest market price it finds?

The valuation framework does not authorize arbitrary or fictitious customs values. The Ministry’s description of the fall-back method expressly excludes such approaches.

9. Can rejection of the invoice price result in a customs penalty?

Potentially. Customs may issue additional assessments and penalties depending on the circumstances. The penalty should nevertheless be reviewed separately from the valuation adjustment.

10. What should the importer submit first?

The importer should provide a coherent documentary chain proving how the price was negotiated, invoiced, paid and recorded. If Customs relies on a higher comparable value, the importer should also challenge differences in product specification, quantity, commercial level, timing and transportation rather than defending the invoice with the invoice alone.

Client-Focused Legal Support for Customs Valuation Disputes in Turkey

Customs valuation disputes may involve:

Rejected invoice prices

Transaction value

Related-party imports

Unusually low prices

Discounts and rebates

Royalty and licence payments

Additional customs assessments

Post-clearance audits

and customs penalties.

Fırat Fesih Kaya Law Office assists foreign manufacturers, multinational companies and importers where Turkish Customs questions or rejects the declared value of imported goods.

Lawyer Fırat Fesih Kaya provides legal assistance in preparing customs valuation evidence, defending transaction values, reviewing related-party pricing, challenging alternative valuation methods, 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