Turkey's Regulatory Framework for Importing Used Cars from China

Turkey is a fast-growing import market for used cars, as it sits on both continents – Europe and Asia – whereas China is a major exporter. In response to changing market dynamics and its desire to modernize its motor vehicle fleet, Turkey has enacted clear laws on used car imports. This paper extensively examines import policies, taxation, documentation requirements and market insights pertaining to the Turkish importation of used cars from China.

Automotive Market Overview in Turkey

Turkey’s automotive market is experiencing a rapid growth due to economic advancement alongside rising demand for personal transportation:

•      As a left-hand drive country, Turkey has a car ownership rate of approximately 250 vehicles per 1,000 people.

•      The automotive industry is one of Turkey's largest industrial sectors and is home to a multitude of European and Japanese carmakers.

•      In 2023, car sales in Turkey reached 1.23 million units which represented an enormous jump of 57.7% from previous year.

•      Economic factors, supply chain disruptions as well as faster delivery times than new vehicles have led to an increase in used car sales within the market.

•      Turkey’s strategic location having advanced infrastructure like main ports such as Ambarli, Istanbul and Mersin facilitates acquisition of used vehicles.

Importation Policies on Chinese Used Cars

Turkey has put in place importation policies which are aimed at regulating the market safety and quality of used vehicles coming into the country:

•      Used car imports require permission from the Ministry of Trade and are subject to regular inspections at authorized testing centers.

•      For inspection and performance tests, TUVTURK is the only authorized company.

•      There is no limit to how old an imported used car can be in order to permit wide choice of motor vehicles available within Turkey.

Policies on Taxation for Imported Used Cars

Turkey's taxation policy for used car imports includes various fees and levies based on the vehicle's specifications:

•      10% import duty is levied together with 18% value-added tax (VAT).

•      In November 2020 Turkey increased import duties on cars beyond 1600ml engine size leading to an increase from 60% to 80% total tax rate for such vehicles.

•      Overall tax rate moved from 160% to 220% for luxury imported cars.

•      In February 2021, the special consumption tax for fully electric vehicles was raised from 3-15% to 10-60%, reflecting a shift in policy away from promoting electric vehicles.

Documentation Required for Used Car Imports

The importation process of used cars requires certain documents:

•      Commercial invoice

•      Certificate of origin

•      Bill of lading with chassis and engine numbers

•      Pro forma invoice

•      Original purchase/commercial invoice

•      Insurance policy

•      Original certificate of ownership and registration

•      Passport

Market Outlook and Dynamics

Turkey's automotive market has moved towards growth emphasizing sustainability and advancements. Although there has been a tilt to second-hand vehicles due to economic factors and interruptions in supply chains, signs of recovery are evident within this market. The regulatory framework is likely to evolve to accommodate new automotive technologies and align with global environmental standards. Turkey’s automotive industry displays bright prospects for itself by virtue of commitment towards infrastructural development as well as trade ties with China. The geographical location of this country and other trade connections like those shared with China will continue playing an important role in shaping its automotive industry.

Summary:

Turkey’s regulatory framework for importing used cars from China is designed to promote vibrant trade and economic growth while also ensuring that vehicles plying its roads are of high quality. By understanding these importation guidelines, tax structure and paperwork, exporters can effectively access Turkish markets. As the market continues to evolve, these regulations will play a crucial role in shaping the future of Turkey's automotive industry.

Please note that used car import tax rates and policies may change over time or be adjusted according to the latest regulations from the government. Therefore, it is advisable to confirm the most current tax information with relevant tax and customs authorities before importing.