Turkish customs increased your import value using reference or benchmark prices? Learn whether customs can reject invoice values, how the transaction value method works, when comparable prices may be used, how importers can challenge additional assessments, and what evidence can prove the real customs value.

Foreign importers in Turkey sometimes face a difficult situation: the commercial invoice shows the actual price paid for the goods, but customs considers that price unusually low compared with prices in its databases, previous imports, comparable transactions, surveillance values or other reference information.

The authority may question the declared customs value and request additional documents. In some cases, the importer may ultimately face a substantially higher customs value, additional import taxes and administrative penalties.

But an important distinction must be made:

A reference price is not automatically the customs value of imported goods.

Under Turkey’s customs valuation system, customs value must be determined according to the legally prescribed valuation methods. The Ministry of Trade confirms that these methods must generally be applied sequentially, beginning with the transaction value method. Only where the requirements for the first method are not satisfied should customs move to subsequent valuation methods. (https://ticaret.gov.tr)

This means that a foreign importer can potentially challenge an assessment where customs has effectively replaced a genuine transaction price with a benchmark, database value or reference price without properly applying the statutory valuation rules.

What Is a Reference Price in Customs Valuation?

“Reference price” is commonly used to describe a benchmark figure against which customs compares the value declared by an importer.

Depending on the circumstances, customs authorities may have information concerning previous imports of identical or similar goods, historical values, sector data, prices from other transactions or values associated with surveillance and trade-policy measures.

Such information may cause customs to question a declaration.

For example, an importer declares industrial components at USD 8 per unit.

Customs has information suggesting comparable imports normally occur at USD 14–16 per unit.

The difference may trigger scrutiny.

However, identifying a discrepancy and legally determining customs value are two different things.

Can Turkish Customs Question an Invoice Because the Price Is Too Low?

Yes.

Customs authorities do not have to accept every commercial invoice without examination.

They can investigate whether the declared transaction value genuinely represents the price actually paid or payable and whether all legally required additions have been included.

The importer may therefore be asked to provide additional documentation demonstrating the commercial reality of the transaction.

But the fact that the invoice price is lower than a benchmark does not necessarily prove that it is false.

There may be legitimate commercial reasons for the lower price.

Transaction Value Is the Starting Point

This is the most important principle in a reference-price dispute.

According to the Ministry of Trade, customs valuation follows six methods:

1. Transaction value.
2. Transaction value of identical goods.
3. Transaction value of similar goods.
4. Deductive value.
5. Computed value.
6. Fall-back method.

The Ministry expressly states that the transaction value method must be tested first. Customs proceeds to the subsequent method only where customs value cannot properly be determined under the preceding method. (https://ticaret.gov.tr)

Therefore, customs should not simply choose whichever reference price generates the highest tax.

What Is Transaction Value?

In general terms, transaction value is based on the price actually paid or payable for goods sold for export to Turkey, subject to the adjustments required under customs valuation legislation.

Those adjustments can include specified expenses and payments associated with the imported goods.

The Ministry confirms that additions to the price actually paid or payable must be based on objective and quantifiable data and that no additions should be made other than those permitted under the applicable customs valuation rules. (https://ticaret.gov.tr)

This is particularly important when customs attempts to increase the declared value.

A Low Price Is Not Necessarily a False Price

International businesses purchase goods at different prices for many legitimate reasons.

A foreign importer may obtain a lower price because of volume discounts, long-term supply agreements, advance payments, clearance sales, discontinued product lines, damaged packaging, seasonal discounts, exclusive distribution arrangements or favorable negotiations.

The importer may also purchase directly from a manufacturer while other importers purchase through intermediaries.

Accordingly, the fact that another Turkish importer paid more for similar goods does not necessarily establish that the lower transaction value is incorrect.

The commercial reason for the difference should be documented.

Customs Cannot Simply Choose the Highest Comparable Value

The Ministry’s customs valuation guidance contains an especially important safeguard.

When the identical-goods method applies and several transaction values for identical goods are available, the lowest qualifying value is used to determine customs value. (https://ticaret.gov.tr)

This directly illustrates why customs valuation cannot operate as a system in which authorities simply identify the highest available comparison and impose it on the importer.

The selected comparison must satisfy the requirements of the applicable valuation method.

Identical Goods Must Actually Be Comparable

Suppose customs relies on another import transaction involving supposedly identical goods.

The importer should investigate that comparison carefully.

Questions may include whether the goods have the same physical characteristics, quality and commercial reputation; whether they were exported at the same or approximately the same time; whether the quantity was comparable; whether the commercial level was comparable; and whether transportation and insurance differences require adjustments.

The Ministry confirms that differences involving commercial level, quantity and transportation can require appropriate adjustments when the identical-goods method is applied. (https://ticaret.gov.tr)

A raw database price therefore does not automatically constitute a valid comparison.

Similar Goods Require the Same Care

If identical goods are unavailable, customs may eventually consider the transaction value of similar goods under the statutory sequence.

But “similar” does not mean vaguely belonging to the same product category.

Technical specifications, quality, materials, functionality, reputation and commercial interchangeability may become relevant.

An importer challenging a comparable price should therefore obtain detailed technical information about its own product.

The more specialized the product, the more dangerous superficial comparisons become.

Example: Industrial Machinery

Suppose a foreign company imports machinery for EUR 120,000.

Customs finds another machine classified under the same tariff heading imported for EUR 190,000.

That difference alone does not necessarily prove undervaluation.

The second machine may have higher capacity, additional modules, newer technology, different accessories, longer warranty coverage or different commercial terms.

The tariff classification may be identical while the commercial products are substantially different.

A proper valuation dispute should expose those differences.

Example: Consumer Electronics

Reference pricing can also create problems for electronics.

The price of a device can vary dramatically according to model year, storage capacity, technical specifications, condition, quantity and distribution channel.

A product sold wholesale in a large commercial shipment should not automatically be valued according to a retail price.

Likewise, an older model should not necessarily be compared with the current generation.

Detailed SKU-level evidence can become important.

Example: Clearance and Liquidation Purchases

Foreign importers sometimes purchase obsolete or discontinued inventory at substantial discounts.

Customs may compare the goods with ordinary commercial imports and conclude that the declared value appears abnormally low.

The importer should preserve evidence of the liquidation circumstances.

This may include correspondence concerning the clearance sale, supplier inventory reports, discontinued-product notices, purchase negotiations and evidence of comparable clearance transactions.

The commercial explanation should be proved rather than merely asserted.

Related-Party Imports

Reference-value disputes are particularly common in transactions between affiliated companies.

A Turkish subsidiary may import goods from its foreign parent or another group company at an intercompany price.

The Ministry of Trade expressly states that the existence of a relationship between buyer and seller does not by itself justify rejecting the transaction value. Customs must examine the circumstances of the sale and whether the relationship affected the price. (https://ticaret.gov.tr)

This is an important protection for multinational companies.

How Can a Related Company Defend Its Price?

The importer can potentially demonstrate that its transaction value closely approximates qualifying benchmark values recognized under customs valuation rules.

The Ministry identifies examples including transaction values for identical or similar goods sold between unrelated parties, deductive values and computed values. It also emphasizes that proven differences in commercial level, quantity and other relevant elements must be taken into account. (https://ticaret.gov.tr)

Crucially, the Ministry states that these benchmark values are used for comparison purposes and are not automatically substituted for the transaction price. (https://ticaret.gov.tr)

That distinction can be central to a customs valuation defense.

Transfer Pricing Does Not Automatically Determine Customs Value

Multinational companies should not assume that a transfer price accepted for corporate income tax purposes automatically resolves customs valuation.

Transfer pricing and customs valuation can examine the same transaction from different legal perspectives.

The importer may therefore need intercompany agreements, transfer-pricing documentation, pricing policies, comparable uncontrolled transactions and accounting records.

Coordination between the company’s tax, customs and legal departments is essential.

Reference Price vs Surveillance Price

These concepts should not automatically be treated as identical.

Turkey applies import surveillance measures to specified products. Surveillance rules may establish unit values or other thresholds relevant to whether a surveillance document is required.

A surveillance value should therefore be analyzed within the legislation governing that particular measure.

It should not automatically be assumed to establish the actual transaction value between buyer and seller.

The distinction between customs valuation rules and import surveillance measures is important.

Surveillance Measures Remain Active in 2026

Turkey continues to amend and apply product-specific import surveillance measures. For example, the Ministry announced an amendment effective in July 2026 concerning surveillance rules for specified textile, apparel and leather products. (https://ticaret.gov.tr)

Foreign importers should therefore identify whether the figure being discussed by customs is genuinely being used as a customs valuation comparison or instead arises from a separate surveillance or trade-policy mechanism.

The legal strategy may differ substantially.

Can Customs Establish a Minimum Customs Value?

The general customs valuation system does not permit arbitrary minimum customs values to replace the statutory valuation methods.

This is particularly clear from the Ministry’s explanation of the final, fall-back valuation method.

Even under that last method, the Ministry expressly states that customs value cannot be based on minimum customs values or arbitrary or fictitious values. (https://ticaret.gov.tr)

This is a powerful principle in disputes involving benchmark-based assessments.

The Fall-Back Method Is Not Unlimited Discretion

The sixth valuation method gives customs flexibility only after the earlier methods cannot determine the value.

It does not give the authority unrestricted power to select any number.

According to the Ministry, even the fall-back method must remain consistent with the principles of the WTO Customs Valuation framework, Customs Law and Customs Regulation. (https://ticaret.gov.tr)

The Ministry expressly excludes valuation based on the domestic selling price of Turkish-produced goods, the higher of two alternative values, export-country domestic prices, minimum customs values and arbitrary or fictitious values. (https://ticaret.gov.tr)

How Can Importers Prove the Invoice Price?

Documentation is the core of a transaction-value defense.

The importer should build a complete commercial trail showing that the declared price represents a genuine transaction.

Important evidence can include the sales agreement, purchase orders, commercial invoices, bank transfer records, SWIFT records, accounting entries, supplier ledgers, correspondence negotiating the price, price lists and delivery documents.

Where discounts apply, the importer should document why they were granted.

Bank Payments Are Particularly Important

A bank transfer matching the invoice can strongly support the commercial reality of a transaction.

But it may not always resolve every customs question.

Customs may investigate whether additional indirect payments were made to the seller or related parties.

The importer should therefore be prepared to explain the entire payment structure.

If no additional payment exists, the accounting and banking records should make that clear.

Purchase Contracts

A detailed supply agreement can be particularly valuable.

It may demonstrate the pricing formula, discount structure, quantity commitments, delivery terms, rebates and payment conditions.

A contract signed before the customs dispute arose can provide stronger evidence than an explanation prepared after customs questioned the value.

Long-term importers should therefore maintain proper written supply documentation.

Discounts Must Be Explainable

A discount is not automatically suspicious.

But a company claiming that its unusually low import price resulted from a 40% commercial discount should be able to prove that discount.

Evidence might include supplier correspondence, price negotiations, volume commitments, promotional agreements or historical invoices.

The stronger the documentary trail, the stronger the argument that the transaction value reflects commercial reality.

Quantity Differences Matter

A company importing 100,000 units should not automatically be compared with an importer purchasing 500 units.

The Ministry’s guidance expressly recognizes quantity differences when applying the identical-goods valuation method. (https://ticaret.gov.tr)

The importer should therefore identify whether the reference transaction involved a comparable quantity.

If not, an appropriate adjustment may be required.

Commercial Level Matters

Wholesale and retail transactions are different.

So are manufacturer-to-distributor and distributor-to-retailer transactions.

The Ministry expressly recognizes commercial-level differences in comparable-value analysis. (https://ticaret.gov.tr)

An importer facing a reference-price assessment should therefore identify the commercial level represented by the alleged comparable transaction.

Timing Matters

Prices change.

Commodity prices fluctuate.

Electronics depreciate.

Fashion products become seasonal.

Industrial components can become obsolete.

The Ministry’s identical and similar goods methods refer to goods exported at the same or approximately the same time as the goods being valued. (https://ticaret.gov.tr)

A reference transaction from a substantially different period may therefore require careful scrutiny.

Transportation Differences Matter

Two identical products can have different landed values because of shipping methods and distance.

Air freight may cost significantly more than sea freight.

Imports from different locations can carry different transportation and insurance costs.

The Ministry expressly recognizes adjustments for significant transportation and insurance differences when applying comparable-value methods. (https://ticaret.gov.tr)

Importers should therefore examine whether customs’ comparison includes equivalent logistics conditions.

Royalties and License Fees

Sometimes the problem is not the reference price itself.

Customs may consider the invoice incomplete because certain royalty or license payments should allegedly have been included in customs value.

The Ministry confirms that qualifying royalties and license fees related to the imported goods can be added where the buyer must pay them as a condition of sale and they have not already been included in the price. (https://ticaret.gov.tr)

Therefore, the importer should distinguish between an arbitrary benchmark increase and a legally required valuation adjustment.

Customs Cannot Add Every Corporate Payment

Not every payment between buyer, seller and affiliated companies belongs in customs value.

The Ministry states that additions to the transaction price must be based on objective and quantifiable data and that additions cannot be made beyond those permitted by the applicable customs valuation provisions. (https://ticaret.gov.tr)

This principle is particularly relevant in multinational group structures involving management fees, royalties, technical services and distribution payments.

Each payment should be analyzed according to its actual legal and commercial function.

What If Customs Rejects the Transaction Value?

The importer should request and review the precise reason.

Was the transaction value rejected because buyer and seller are related?

Does customs believe an additional payment exists?

Are the payment records inconsistent?

Does customs question the invoice’s authenticity?

Or is the only concern that the declared price is lower than a reference value?

These situations require different defenses.

A valuation objection should address the specific legal reason for rejection.

Customs Must Follow the Valuation Sequence

If the transaction value cannot legally be used, customs does not immediately gain unlimited valuation discretion.

It should move through the statutory valuation hierarchy.

The Ministry expressly confirms that the next method is not used while customs value can properly be determined under the preceding method. (https://ticaret.gov.tr)

An importer should therefore reconstruct the authority’s methodology step by step.

If customs skipped required methods, that can become an important ground of challenge.

Additional Customs Tax Assessment

If customs determines a higher value, the result may be an additional assessment.

The importer should verify:

the original declared value,

the value adopted by customs,

the method used to determine that value,

the resulting additional taxes,

and any administrative penalty.

The calculation itself should also be checked.

A methodological error can affect both the additional duty and the associated penalty.

Can a Valuation Assessment Be Challenged?

Yes.

Where customs issues an additional assessment, penalty or other appealable administrative decision, the importer should examine the administrative objection mechanism under Customs Law No. 4458.

The challenge should not merely state that the reference value is too high.

It should explain why the declared transaction value satisfies the legal requirements or why customs incorrectly applied the subsequent valuation methods.

Supporting commercial documentation is essential.

The 15-Day Objection Period

Customs disputes involve short procedural deadlines.

Under the administrative objection framework of Customs Law No. 4458, notified customs duties, penalties and administrative decisions are generally subject to a 15-day objection period.

Foreign companies should therefore obtain legal review immediately after receiving an assessment.

A company should not wait for headquarters to complete a lengthy internal investigation before protecting its procedural rights.

What Should a Reference-Price Objection Argue?

Depending on the facts, the objection may argue that the transaction is genuine, the invoice represents the actual amount paid or payable, the importer has documented all relevant payments, customs lacked sufficient grounds to reject the transaction value, or the comparable transactions relied upon by customs are not genuinely comparable.

It may also challenge differences in quantity, commercial level, timing, technical specifications or transportation.

Where customs moved to a subsequent valuation method, the importer should examine whether the statutory sequence was followed.

Can Customs Settlement Be Considered?

Depending on the nature of the additional assessment and penalty, customs settlement may potentially be available.

But the company should first understand the strength of its valuation defense.

A company with strong bank records, contracts and commercial evidence proving a genuine transaction price may have a materially different risk profile from an importer unable to explain substantial discrepancies in its documents.

The strategic decision should therefore follow substantive valuation analysis rather than precede it.

Judicial Challenge After Administrative Rejection

If the administrative objection is unsuccessful, judicial remedies may be available before the competent court after completion of the required administrative process.

The court may need to examine whether customs lawfully rejected transaction value and whether the alternative valuation methodology complied with the statutory hierarchy.

This makes the administrative file extremely important.

Companies should build the evidentiary record from the first stage rather than waiting until litigation begins.

What If the Importer Paid Tax Based on an Artificially Increased Value?

A different problem arises where an importer increased the declared value because of a surveillance threshold or another customs practice and consequently paid additional taxes.

The legal possibilities for repayment or cancellation depend on how the declaration was made, which financial obligations were paid, the applicable legislation and current judicial interpretation.

Such cases require individualized review.

They should not automatically be treated as ordinary transaction-value objections.

Historical Imports Should Be Reviewed

If customs questions the valuation methodology used for one shipment, the company should determine whether the same methodology was used previously.

This is particularly important for related-party imports.

A valuation issue involving transfer pricing, royalties or recurring discounts may affect hundreds of historical declarations.

Management should calculate the broader exposure immediately.

Future Imports Must Also Be Addressed

Winning one objection is not enough if the same valuation dispute occurs every month.

The company should establish a prospective customs valuation file containing contracts, pricing documentation, payment evidence and explanations of any discounts.

Where related-party pricing is involved, customs and transfer-pricing policies should be coordinated.

Preventive documentation can significantly reduce repeated disputes.

20-Step Action Plan for a Reference-Price Customs Valuation Dispute

1. Obtain the customs valuation decision.
2. Record the notification date.
3. Identify the declared transaction value.
4. Identify the reference value used by customs.
5. Determine the legal valuation method customs applied.
6. Ask why the transaction value was rejected.
7. Obtain the sales agreement.
8. Collect commercial invoices.
9. Collect bank and SWIFT payment records.
10. Document discounts and rebates.
11. Identify any related-party relationship.
12. Review transfer-pricing documentation where relevant.
13. Examine royalties and license fees.
14. Compare product specifications with reference goods.
15. Compare quantities and commercial levels.
16. Compare transaction dates.
17. Compare freight and insurance conditions.
18. Calculate additional duties and penalties.
19. Protect the applicable administrative objection deadline.
20. Review historical and future imports using the same valuation methodology.

The central principle is clear: customs authorities may investigate suspiciously low declared values, but customs value must ultimately be determined through the legally prescribed valuation system rather than through arbitrary benchmark substitution.

Frequently Asked Questions

Can Turkish customs reject my invoice because it is below a reference price?

Customs can question a declared value and request supporting evidence. However, the valuation must ultimately follow the statutory customs valuation methods. Transaction value is the starting method and subsequent methods are used according to the prescribed hierarchy. (https://ticaret.gov.tr)

Is a reference price automatically the customs value?

No. A benchmark can trigger scrutiny or have relevance within an applicable valuation or surveillance framework, but it does not automatically replace the legally determined customs value.

Can customs use the price of identical goods?

Potentially, where the transaction value method cannot properly determine customs value and the conditions for the identical-goods method are satisfied. Commercial level, quantity, timing, transportation and other relevant differences must be considered. (https://ticaret.gov.tr)

What if customs finds several prices for identical goods?

The Ministry states that where multiple qualifying transaction values for identical goods are identified under that method, the lowest is used to determine customs value. (https://ticaret.gov.tr)

Can customs automatically reject an intercompany price?

No. The Ministry expressly states that the existence of a relationship between buyer and seller is not, by itself, sufficient reason to reject transaction value. Customs must consider whether the relationship influenced the price. (https://ticaret.gov.tr)

Can Turkey use minimum customs values?

The Ministry’s explanation of the fall-back method expressly excludes minimum customs values and arbitrary or fictitious values as bases for customs valuation. (https://ticaret.gov.tr)

What documents can prove my transaction value?

Strong evidence can include sales contracts, purchase orders, invoices, bank transfers, SWIFT records, accounting entries, supplier correspondence, pricing policies and documentation explaining discounts or rebates.

Is a surveillance price the same as customs value?

Not necessarily. Import surveillance and customs valuation are legally distinct concepts. Turkey continues to operate product-specific surveillance measures in 2026. (https://ticaret.gov.tr)

Can I challenge an additional assessment based on reference prices?

Yes, where customs has issued an appealable assessment or administrative decision. The defense should address why transaction value should be accepted or why customs incorrectly applied the alternative valuation methodology.

Should I review previous imports?

Yes. If the disputed valuation methodology was repeatedly used, particularly for related-party transactions, royalties or recurring discounts, the same issue may affect numerous historical declarations.

Client-Focused Legal Support for Customs Valuation Disputes in Turkey

Reference-price disputes can involve a fundamental distinction between customs authorities questioning a declared value and customs authorities legally replacing that value. Customs may investigate an unusually low price, but the final customs value must be determined according to the applicable valuation rules.

The transaction value method remains the starting point. The Ministry of Trade confirms that subsequent valuation methods should generally be used sequentially and that a later method is not applied where customs value can properly be determined through the preceding method. (https://ticaret.gov.tr)

Foreign companies should therefore build a documentary chain proving the commercial reality of the transaction. Contracts, invoices, bank transfers, price negotiations, volume discounts and accounting records can become decisive. Where customs relies on comparable imports, differences in quantity, commercial level, timing, technical specifications and transportation should be examined carefully.

The issue becomes particularly important for multinational groups. A relationship between buyer and seller does not automatically justify rejecting the transaction value, and Ministry guidance expressly recognizes this principle. (https://ticaret.gov.tr)

Fırat Fesih Kaya Law Office assists foreign companies and international importers with customs valuation disputes, reference-price assessments, transaction value disputes, import surveillance issues, related-party customs valuation, transfer-pricing-related customs matters, royalty adjustments, additional customs assessments, customs penalties, administrative objections and customs litigation in Turkey.

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