The rise in the import duty of walnuts in Turkey by 94% from September 23, 2017
“From September 23, 2017, the Ministry of Economy of Turkey, introduced some new rules for calculating the import duty of walnuts, cashews and almonds in order to protect and support the national producer,” Hürriyet, Turkish news agency is reported.
This information is also published in the official Gazette of the Ministry of Economy of Turkey.
So, starting from September 23, 2017, the “basic customs value” for the whole import of in-shell walnuts per kilogram has increased from 1.8$ to 3.5$. For shelled walnuts, the “basic customs value” has grown from 5.4$ to 6.5$. The customs clearance rate remains unchanged, and makes up 43% of the greater: either of “value of the goods” or “basic customs value”.
That is: let’s say, in-shell walnuts are exported from Ukraine for the value 1.55$/kg CIF Turkey.
- From September 23, 2017, the import duty is: 3.5$ (base customs value) *43% = 1.5$, that is, the walnut price with the customs clearance in Turkey will be: 1.55$+1.5$ = 3.05$/kg
- By September 23, 2017, the import duty for the same lot was: 1.8$ (base customs value) *43% = 0.77 $, to wit the cost of clearance has increased almost twice. The total value of the lot would be 2.32$/kg (1.55$+1.8$*43%).
Similar changes, but less cardinal, concerns shelled walnuts: the “base customs value” has increased from 5.4$ to 6.5$.
Accordingly, such a abrupt jump of the import duty in Turkey will have an impact on the demand of Turkish buyers in Ukraine and, accordingly, the price of in-shell walnuts in Ukraine.