Trading with Türkiye: Opportunity or Risk?

The Reality of “Landed Cost” in Sales to Türkiye

A common mistake among foreign exporters is focusing only on the export price while ignoring the landed cost — the total cost of getting the goods delivered to the buyer in Türkiye.

Landed cost goes far beyond the product’s selling price. It includes freight, insurance, customs duties, VAT, excise taxes, customs clearance fees, warehousing, and inland transport, among others. Certain goods may also be subject to surveillance, anti-dumping, or additional fiscal measures, all of which directly affect total cost.

In short, succeeding in the Turkish market is not just about competitive pricing — it’s about accurate cost calculation. A product that appears profitable at first may in fact result in losses once all local costs are properly factored in.

Contracts and Incoterms: Small Details, Big Consequences

In export contracts to Türkiye, incorrectly chosen Incoterms can easily lead to confusion over responsibilities and liabilities. For instance, CIF Istanbul and DAP Ankara may sound similar in scope but are completely different in terms of risk transfer, insurance, tax exposure, and cost allocation.

Moreover, Turkish customs authorities pay close attention to contract details when assessing transaction value. Items such as moulds, design fees, royalty or license payments, and technical service charges that are not explicitly listed in the invoice may still be added to the customs value. Therefore, contracts should be structured not only from a commercial perspective but also with customs and tax implications in mind.

The Turkish Market: Dynamic, Demanding, and Distinct

Despite occasional macroeconomic volatility, Türkiye remains a vibrant and growth-oriented market. Turkish consumers are brand-conscious and quality-driven, yet price sensitivity remains high. Local distributors expect flexible delivery schedules, quick after-sales support, and favorable payment terms.

In addition, administrative practices in Türkiye can differ from those in the EU, even when the legislation appears similar. Interpretation plays a greater role in enforcement, and different customs offices may apply slightly different approaches to the same product. Hence, success depends not only on knowing the rulebook but also on understanding how it is applied in practice.

Where Are the Risks — and the Opportunities?

Türkiye’s strong industrial base and geographic position make it a potential production and distribution hub for the wider region. The EU–Türkiye Customs Union and Türkiye’s free trade agreements with Middle Eastern and Central Asian countries offer access to nearly one billion consumers within short reach.

However, differences in administrative speed, exchange rate fluctuations, and frequent regulatory updates can pose challenges. Entering the Turkish market should therefore be viewed not merely as an export decision, but as a strategic investment requiring careful planning and foresight.

Conclusion: Seeing the Opportunities, Managing the Risks

The Turkish market offers remarkable potential for companies that approach it with the right strategy. A well-calculated landed cost, clearly defined contracts, a customs plan that reflects local realities, and a coordinated trade process all significantly increase the chances of success.

Still, this is not a market to enter unprepared. The companies that thrive in Türkiye are those that understand the risks, plan comprehensively, and align commercial, operational, and compliance perspectives.

In Türkiye, opportunity favors those who take informed, deliberate steps — because real success here begins with understanding the whole picture.