Regulation on the Determination of the Preferential Origin of Goods in Trade within the Scope of the Bilateral Cumulation System

The regulation, issued by the Ticaret Bakanlığı, sets out detailed rules on how the preferential origin of goods will be determined in trade conducted under specific Free Trade Agreements (FTAs).

Scope and Purpose

The regulation applies to trade between Türkiye and its FTA partners, notably:

• Albania
• Moldova
• Serbia

It establishes the legal and technical framework for applying bilateral cumulation of origin, allowing materials originating in one party to be treated as originating in the other, provided that the conditions laid down in the relevant agreements are met.

The main objective is to ensure uniform, transparent, and verifiable application of preferential origin rules, thereby supporting legitimate use of tariff preferences while preventing abuse.

Key Elements Introduced

• Definitions of originating products:The regulation clearly defines what constitutes wholly obtained products, sufficiently worked or processed products, and non-originating materials.
• Rules of origin and working/processing criteria:Detailed provisions specify when production operations are considered sufficient to confer origin, including references to value-added thresholds, tariff shift rules, and product-specific processing requirements.
• Insufficient operations:Certain minimal operations (such as simple packaging, cleaning, or labeling) are explicitly listed as insufficient to confer origin, even if performed in an FTA partner country.
• Origin documentation:Preferential origin must generally be proven through:
• Verification and control mechanisms:Customs administrations are granted authority to verify origin claims, request supporting documents, and conduct post-clearance checks where necessary.

Entry into Force

The regulation enters into force on 1 January 2026, and applies to preferential trade carried out from that date onward.

Practical Impact

For exporters and importers trading under Türkiye’s FTAs:

• Origin compliance becomes more critical, particularly where bilateral cumulation is used.
• Companies must ensure that production records, supplier declarations, and cost structures are consistent with the origin rules.
• Incorrect origin claims may result in loss of preferential treatment, retroactive duty collection, and potential penalties.

Overall, the new regulation aims to strengthen legal certainty in preferential trade while aligning Türkiye’s origin practices more closely with international standards and FTA commitments.

This development is expected to have a direct impact on companies engaged in manufacturing, sourcing, and cross-border supply chains involving Türkiye and its FTA partners.

See official regulation