Related-Party Imports into Turkey: Customs Law Article 24(2), Test Values and Transfer Pricing (2026)
Short and Clear Answer
A related-party sale is not rejected automatically for Turkish customs valuation. Customs Law No. 4458 Article 24(2) requires examination of whether the relationship between buyer and seller affected the price. If it did not affect the price, the transaction value can be accepted. The Ministry of Trade’s customs-value guidance also recognizes comparison with specified test values for related-party transactions.
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Foreign parent companies, subsidiaries and sister companies therefore need an intercompany customs file, not a blanket assumption that a corporate transfer-pricing policy solves customs valuation. Corporate Tax Law transfer pricing and Customs Law valuation are separate regimes. The customs file must reconcile the sale price, Article 27 additions, Article 28 exclusions and any year-end price adjustments.
Corporate relationship alone does not invalidate transaction value; the Article 24 test focuses on the effect on price.
Contents
1. Customs Law Article 24(2) Governs Related-Party Transaction Value
Article 24 of Customs Law No. 4458 establishes transaction value as the primary valuation method. Paragraph 2 addresses the effect of a relationship between buyer and seller. The legal rule is clear: the existence of the relationship is not, by itself, sufficient reason to reject the transaction value.
The customs administration examines the circumstances surrounding the sale. The question is whether the relationship influenced the price. That inquiry must be based on facts relevant to the imported goods and the transaction. A corporate chart proves that the parties are related; it does not prove that the invoice price is too low.
For a multinational group, the practical consequence is that customs valuation must be included in intercompany pricing governance. The Turkish importer should be able to explain why the price was formed, what commercial functions the parties perform and whether the price reflects circumstances comparable to dealings with independent buyers.
2. Who Is Treated as Related for Customs-Valuation Purposes?
The Customs Law and implementing rules use defined relationship criteria. Corporate ownership is one route, but relationship is not limited to a parent owning all shares of a Turkish subsidiary. Management, control, business association and specified family or ownership links can be relevant under the customs rules.
A foreign supplier should therefore not decide relationship status solely from the percentage shown on a shareholder register. The group structure, directors, control rights and relevant commercial links should be reviewed when preparing the valuation file.
Exclusive distributor or agency relationships also require legal analysis. Exclusivity by itself is not a substitute for the statutory relationship test, but the underlying facts can establish a relationship where the criteria in customs legislation are met.
3. The Core Question: Did the Relationship Affect the Price?
Article 24(2) focuses on price influence. Customs may examine how the price was negotiated, whether independent customers purchase comparable goods, how margins are set, whether the seller recovers costs and profit, and whether special group benefits are embedded outside the invoice.
The importer should answer this question with evidence rather than a general assertion that the group follows an arm’s-length policy. Relevant evidence includes independent-customer sales, product-level pricing matrices, discount policies, board-approved intercompany pricing rules, distribution agreements and comparable commercial terms.
Differences must be explained. A Turkish subsidiary buying large annual volumes can lawfully receive a lower price than a small independent buyer where the commercial reasons are documented. Conversely, a low price cannot be justified merely by calling it a group discount if there is no evidence showing how the discount was determined.
4. Test Values for Related-Party Transactions
The Ministry of Trade’s customs-value guidance explains that a related-party transaction value can be accepted where the declarant demonstrates that it closely approximates specified comparison values from the same or nearly the same time. These include qualifying transaction values between unrelated buyers and sellers and values determined under deductive or computed methods for identical or similar goods.
These are comparison tools. They do not authorize customs to replace the declared price automatically with a test value. The guidance expressly treats test values as comparators used at the declarant’s initiative in the related-party analysis.
Commercial level, quantity, Article 27 elements and costs borne differently in related and unrelated sales must be considered. The comparison must therefore be adjusted to actual differences rather than performed as a simple invoice-to-invoice percentage calculation.
5. Corporate Transfer Pricing Does Not Replace Customs Valuation
Turkish Corporate Tax Law No. 5520 Article 13 governs transfer pricing for corporate-income-tax purposes. Customs Law No. 4458 Articles 23–31 govern customs valuation. Both systems use arm’s-length concepts, but they have different statutory objectives, calculation mechanics and consequences.
A transfer-pricing study can support the customs file by explaining group functions, risks, margins and comparables. It does not eliminate the need to apply Article 24, Article 27 and Article 28 to each relevant customs transaction. Customs value is determined at importation under customs legislation.
A company that uses a transactional net margin method for income tax may still need invoice-level evidence for customs. Conversely, acceptance of an import invoice by customs does not settle the company’s corporate-income-tax transfer-pricing position. See our foreign-owned company transfer-pricing guide.
6. Year-End Transfer-Pricing Adjustments Must Be Reviewed for Customs
Multinational groups often make year-end debit or credit adjustments to place a distributor within a target margin. A customs file cannot ignore those adjustments when they relate to imported goods. The company must identify whether the adjustment changes the price actually paid or payable for past imports and whether a customs correction is required.
A lump-sum year-end invoice is difficult to reconcile if it does not identify products, import declarations or periods. Customs governance should therefore require a mapping between transfer-pricing adjustments and the imported goods to which they relate.
The direction of the adjustment matters but does not answer the legal question. Both upward and downward adjustments require analysis under the customs rules and the available correction or repayment mechanisms. Companies should not assume that only increases matter to customs.
7. Royalties, Management Fees and Other Group Payments
Related groups frequently have separate agreements for trademarks, technology, management services, engineering, IT, design and marketing. Each payment must be classified under customs law. A payment recorded as an operating expense can still be relevant to customs value if Article 27 requires an addition.
Royalties and licence fees require a specific Article 27 analysis. The question includes whether the payment relates to the imported goods and whether it is a condition of sale under the statutory framework. Management fees are not automatically additions; the actual service and its connection to the imported goods must be established.
Free or reduced-cost tooling, moulds, components, design or engineering supplied by the Turkish buyer to the foreign producer can also create an Article 27 assist. Group accounting labels do not override the customs classification of the payment or benefit.
8. Documents a Foreign Group Should Keep
The core customs file should contain the intercompany sales agreement, price lists, purchase orders, invoices, payment records, Incoterms terms, freight and insurance documents, royalty and licence agreements, service agreements, tooling records, transfer-pricing policy and comparable-sales evidence.
Where an independent-customer comparison is used, the company should preserve the contracts and explain differences in volume, level of trade, market, warranty, delivery terms and Article 27 elements. A bare spreadsheet without source documents is weaker evidence.
Customs Law Article 11 empowers customs to request information and documents. Article 13 governs record retention. Foreign headquarters should have a process for sending documents promptly to the Turkish importer when customs requests them.
9. Responding to a Turkish Customs Valuation Audit
The first step is to identify the exact customs concern. Customs may question the relationship itself, whether it affected price, an omitted Article 27 element, a post-import price adjustment or the reliability of the documents. Each issue requires a different response.
The response should be organized by declaration and product. It should state the legal basis, explain the pricing mechanism, reconcile payments and show any relevant comparison values. If customs relies on a benchmark, the company should examine whether the goods, commercial level, quantity, timing and transport terms are genuinely comparable.
Unsupported claims that a price is too low do not replace the valuation methods. Likewise, the importer cannot defend a price solely by pointing to group policy. Both sides must work within the legal valuation framework.
10. Article 234(1)(b) Exposure for Related-Party Undervaluation
If the final customs value is higher than the declared value for goods subject to ad valorem duties, Article 234(1)(b) governs the administrative consequence when its elements are present. The duty difference is collected and the statute prescribes a fine equal to three times the tax difference.
A group-pricing method applied across many imports can create repeated exposure. For that reason, customs valuation should be reviewed when the intercompany model is designed, not after an audit starts.
Administrative valuation penalties remain distinct from criminal liability under Anti-Smuggling Law No. 5607. A related-party price difference does not automatically establish a criminal offence.
11. Challenging a Customs Valuation Decision
Customs Law Article 242 gives the statutory administrative objection route against customs decisions, duties and penalties. The objection period is fifteen days from notification. The file should identify the challenged assessment, legal grounds and supporting documents within that procedural framework.
If the dispute concerns relationship and price influence, the objection should address the Article 24(2) test directly. If the dispute concerns royalties, assists or other additions, the objection should focus on Article 27. Mixing different legal issues into a generic complaint weakens the analysis.
After the administrative stage, judicial review proceeds before the competent administrative court under the applicable procedural rules. Foreign shareholders can coordinate the Turkish case through duly authorized Turkish counsel.
Official and Related Sources
- Ministry of Trade – Customs Value FAQ
- Ministry of Trade – Customs Law No. 4458
- Transaction Value Method in Turkey
Frequently Asked Questions
Does a parent-subsidiary relationship automatically invalidate customs value?
No. Article 24(2) states that relationship alone is not sufficient; customs examines whether it affected price.
Can transfer-pricing documentation prove customs value?
It can be evidence, but it does not replace the customs valuation rules in Articles 23–31.
What are test values?
They are specified comparison values used in the Article 24 related-party analysis, subject to adjustments for commercial differences.
Can customs simply substitute a test value?
The Ministry guidance treats test values as comparison tools; the statutory valuation method still governs the declared goods.
Do year-end transfer-pricing adjustments matter for customs?
Yes. An adjustment relating to imported goods must be reviewed to determine its customs consequences.
Are group royalties automatically included in customs value?
No. Article 27 requirements must be tested for the specific royalty or licence payment.
What is the objection period?
Customs Law Article 242 provides a fifteen-day administrative objection period from notification.
Can foreign headquarters provide evidence during a Turkish customs audit?
Yes. Contracts, pricing records, comparison sales and other documents held abroad can support the Turkish importer’s file.
Lawyer Review and E-E-A-T
Prepared by: Attorney Halil BAKIRCI – Mersin Bar Association, Registration No. 3472
Legal review: Bakırcı & Keskin Law Office.
This guide was reviewed against Customs Law No. 4458 Articles 11, 13, 23–31, 24(2), 27, 28, 234 and 242 and the Ministry of Trade’s customs-value guidance.
Contact Us About Related-Party Customs Valuation
Last legal-source review: 12 September 2026.
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