Avoiding Asset Freezes: Key Compliance Rules for Temporary Imports in Turkey

I. Introduction

Turkey’s geographic location and dynamic economy make it a key hub for international commerce, project-based industries, and specialised technical services. These often depend on the temporary imports of high-value assets within Turkish customs territory—ranging from industrial machinery and vehicles to advanced equipment used in construction, research, and logistics.

While Turkish law provides a legal framework for the temporary admission of such goods, the practical reality is far from straightforward. Customs procedures are layered with strict conditions, and the risk of subsequent judicial intervention adds a further dimension of complexity. Without rigorous compliance and forward planning, importers can find themselves facing not only unexpected financial liabilities but also immobilised equipment and disrupted operations.

Understanding how Turkey treats temporarily imported goods—both from a regulatory and enforcement perspective—is essential for any business managing cross-border assets. The legal framework, though functional, demands precision. Even minor irregularities in customs declarations, usage, or documentation can lead to severe consequences, including retroactive taxation, fines, interest charges, and restrictions on the movement or export of the goods concerned.

II. The Turkish Temporary Imports Regime: A Framework of Conditional Privilege

The ability to bring foreign goods into a country for limited use—often with tax and duty advantages—is a common feature of modern customs systems. In Turkey, this practice is governed by Customs Law No. 4458, which is broadly aligned with the European Union Customs Code. It is essential to view this regime not as an automatic right, but as a conditional benefit, subject to strict oversight.

2.1. Core Principles and Legal Basis of Temporary Imports

The core premise of the temporary importation system is to allow goods originating outside of Turkey to enter Turkish customs territory for a specified purpose and duration, without becoming subject to full import duties—on the condition that the goods are subsequently re-exported. During this period, such goods may benefit from full or partial exemptions from import-related financial obligations, including customs duties, Value Added Tax, and, where applicable, Special Consumption Tax . In addition, they are generally exempt from trade policy measures that apply to goods destined for the Turkish domestic market (such as antidumping, subsidies etc.).

The statutory basis for the regime is set out in Articles 128 to 134 of the Customs Law, which detail the eligibility criteria, authorized uses, duration, and guarantee requirements. The aim is to support cross-border business activity, facilitate large-scale or specialized projects, and accommodate temporary needs—while simultaneously safeguarding the government’s fiscal interests and preventing misuse of the customs framework.

A central condition is that the goods must be re-exported without undergoing any transformation, except for deterioration resulting from their approved and declared use.

2.2. Common Applications and the Scope of Permissible Uses

The temporary importation regime applies across a wide range of sectors and scenarios. Common examples include:

Specialized machinery brought in for major infrastructure or construction projects,
Molds, tools, and testing devices used in industrial manufacturing,
Goods temporarily exhibited or used at trade fairs, cultural events, and conferences,
Equipment used by visiting professionals—engineers, researchers, artists, and technicians,
Aircraft, helicopters, or vessels temporarily engaged in aerial work, marine services, or tourism.

Each temporary import is subject to a declaration specifying the intended use of the goods. This declared use forms a legally binding condition of the temporary import permit. A deviation from the declared purpose without prior authorization from customs authorities is treated as a breach of the regime and may trigger serious legal and financial consequences.

2.3. The Importance of Security Deposits and Its Function

In most cases, particularly where a full exemption from import duties is granted, Turkish customs authorities require the provision of a financial guarantee. This security must cover the total amount of import duties and taxes that would have been payable if the goods had been brought in permanently.

Accepted forms of security include:

Cash deposits,
Bank guarantees issued by Turkish financial institutions,
Other methods approved by the customs administration.

This guarantee serves a dual purpose. First, it functions as a financial safeguard, ensuring the state can recover duties if the asset is misused or not re-exported as required. Second, it operates as a deterrent, encouraging compliance through the risk of forfeiture.

The security is typically released once the importer submits satisfactory proof that the goods have been re-exported or lawfully placed under another authorized customs procedure.

This mechanism underscores the conditional and temporary nature of the privilege. Importers bear the financial risk associated with any non-compliance, however unintentional.

III. Exemption Conditions

The principal appeal of Turkey’s temporary imports regime lies in the opportunity to avoid significant customs duties and taxes. However, these financial advantages are conditional. They depend on full compliance with a set of specific legal obligations. A failure to meet any of these requirements—whether through omission, misinterpretation, or operational oversight—can result in the complete loss of the exemption and trigger enforcement by customs authorities.

3.1. Legal Character of Exemptions and Their Strict Application

Exemptions under the temporary import system are not discretionary allowances but narrowly defined exceptions to general customs rules. As such, they are interpreted and applied restrictively by Turkish customs authorities. These privileges are granted on the basis of the importer’s formal commitment to adhere to all stated conditions.

In practice, this means that where there is any uncertainty as to whether an obligation has been met, the benefit of the doubt typically favors the administration. Even minor deviations from the authorized use, duration, or handling of the asset may be treated as breaches, regardless of the absence of commercial harm or bad faith.

3.2. Core Restrictions and Positive Duties

While each authorization may contain use-specific terms, certain restrictions and obligations apply in nearly all cases:

Restriction on Disposal or Change of Use:
Temporarily imported goods may not be sold, transferred, leased, pledged, or otherwise disposed of within Turkey. Nor may they be used for any purpose other than the one declared in the import documentation. Any deviation requires prior authorisation from the customs authority.
Re-export Within the Authorized Period:
The importer must re-export the goods within the timeframe set in the temporary import permit. Extensions may be requested in justified circumstances, but approval is discretionary and not automatic. Late re-exportation—without formal extension—is treated as a breach.
Preservation of the Asset’s Condition and Identity:
The asset must remain substantially unchanged during its stay in Turkey. Modifications beyond normal wear and tear, or replacement of core components, may result in disqualification from the regime. The goods must be re-exported in a condition consistent with their declared use.

3.3. The Importer’s Continuing Responsibility

Responsibility for ensuring compliance with the conditions of temporary importation lies entirely with the importer (or declarant), and in some cases, with other parties using or holding the asset. This responsibility begins at the moment the goods enter Turkish customs territory and continues until their re-export or lawful transfer to another customs-approved status.

Importers are expected to maintain clear and complete records covering the use, location, condition, and exit of the goods. These records must be available for inspection and are critical in demonstrating compliance. Given the financial and legal consequences of even technical non-compliance, a proactive compliance approach is essential.

IV. Breaches of Temporary Import Conditions: A Chain of Legal and Financial Consequences

Non-compliance with the rules governing temporary importation in Turkey can trigger a cascade of liabilities. Customs authorities are legally empowered to respond with immediate financial claims, penalties, and enforcement measures. Even technical breaches—if not promptly addressed—can escalate into significant commercial disruption and legal exposure.

4.1. Withdrawal of Exemptions and Retroactive Taxation

Once a breach is established, any customs exemptions previously granted are revoked with retroactive effect. The goods are treated as though they had been permanently imported on the date of initial entry. This triggers full liability for:

Customs Duty,
Import Value Added Tax, and
Special Consumption Tax, where applicable.

The amounts are assessed based on the asset’s customs value, origin, and classification at the time of import. For high-value items, the resulting duty burden can be substantial.

4.2. Administrative Fines for Regulatory Violations

In addition to retroactive duties, Customs Law No. 4458 provides for administrative fines under Article 238. The level of penalty varies depending on the nature and seriousness of the breach:

In cases involving unauthorized disposal or use of the asset, fines may reach twice the customs-cleared value of the goods.
Lesser breaches typically result in fines proportional to the avoided duties or taxes.

These penalties are administrative in nature and apply regardless of intent. Even unintentional violations can lead to significant financial exposure.

4.3. Accrued Interest and Ancillary Penalties

Interest is charged on all outstanding amounts, calculated from the date of import until payment is made, in accordance with Law No. 6183 on the Collection of Public Receivables. Depending on the time elapsed, interest alone can materially increase the overall liability.

Further administrative penalties may also apply under Article 241 of the Customs Law, particularly where procedural irregularities or documentation errors are identified.

4.4. Asset Freeze and Operational Disruption

If duties, taxes, or fines arising from a breach of the temporary import regime are not promptly paid or secured, Turkish customs authorities may block the release or re-export of the goods. Under Article 58/2 of the Turkish Customs Code (Law No. 4458), goods that are not in free circulation remain under customs supervision until they are either re-exported, destroyed, or placed under a different customs regime.

If the importer fails to take timely action, customs may initiate enforcement under Law No. 6183 on the Collection of Public Receivables, including precautionary attachment and eventual disposal through auction or destruction as permitted under Articles 177–180 of the Customs Code.

V. Conclusion

Turkey presents substantial opportunities for international investors, service providers, and project developers who rely on the cross-border movement of high-value assets. The legal framework supporting temporary imports is functional and, in many respects, aligned with international standards. However, it is not without complexity—and certainly not without risk.

Duty exemptions under the temporary importation regime are granted conditionally, and the conditions are applied rigorously. Even technical non-compliance may lead to significant financial liabilities, while delays in responding to customs inquiries or judicial claims can result in assets being effectively stranded within the country. At the same time, unrelated commercial disputes may give rise to court orders that independently block asset movement, adding further complication to already sensitive operations.

Avoiding these outcomes requires more than basic procedural knowledge. It calls for early and careful planning, precise declarations, vigilant compliance monitoring, and well-drafted agreements with local contractors or service providers. Where assets are of significant value or critical to project delivery, oversight must be continuous and supported by legal advice at each stage.