Blog Article
What Is GTIP (HS Code)? | Risks of Using the Wrong GTIP in Imports
Learn how the GTIP code affects customs duty, VAT, TAREKS, surveillance, CE marking, documentation requirements and import risks.
Published:
GTIP (Customs Tariff Statistical Position) is a 12-digit code that determines the customs classification of every imported product. This code directly affects every financial and legal aspect of an import, from your product's customs duty rate to its VAT base, and from the TAREKS inspection requirement to surveillance measures. Using the wrong GTIP, on the other hand, can result in unexpected tax burdens, customs delays, administrative fines and even criminal proceedings. In this guide, we explain in detail what GTIP is, its critical role in importing, and the risks of using it incorrectly.
What Is GTIP (HS Code)?
GTIP stands for Customs Tariff Statistical Position. This code, which ensures that every product is classified according to a specific system in international trade, acts as the product's identity card in customs procedures.
The GTIP code determines:
- The customs duty rate
- VAT and additional tax applications
- The TAREKS inspection requirement
- Surveillance measures (minimum value)
- The requirement for a CE certificate or conformity document
- Whether anti-dumping duty applies
- Import permit or quota requirements
In short, GTIP is the primary reference point that determines the financial burden and legal requirements of an import.
Are HS Code and GTIP the Same Thing?
The HS Code (Harmonized System Code) is a 6-digit international classification system developed by the World Customs Organization (WCO) and used worldwide. GTIP is the extended version of this system specific to Turkey.
| Code Type | Number of Digits | Area of Use |
|---|---|---|
| HS Code | First 6 digits | International classification (World Customs Organization) |
| CN Code | Digits 7-8 | European Union Combined Nomenclature |
| GTIP | Digits 9-12 | Turkish national regulations |
The HS Code provided by your supplier covers only the first 6 digits. Tax rates and regulations in Turkey, however, are determined according to the 12-digit GTIP code. For this reason, the code provided by the supplier is not sufficient on its own.
Why Is GTIP 12 Digits in Turkey?
In addition to the 6 digits of the international HS system, Turkey adds the EU's 2-digit CN code and its own 4-digit national breakdown, using a 12-digit system. This detailed structure serves the following purposes:
- More specific classification of products
- The ability to apply different tax rates to different product sub-groups
- Precise management of national trade policies (surveillance, quotas, anti-dumping)
- Detailed collection of statistical data
For example, two similar products under the same chapter may be subject to completely different tax rates and inspection requirements because of a difference in the last 4 digits.
How Does GTIP Affect Customs Duty?
The GTIP code directly determines the customs duty rate the product will be subject to. Even products in the same category may be subject to rates ranging from 0% to 20%+ depending on the GTIP.
How GTIP affects taxation:
- Customs duty rate: Ranges from 0% to 20%+ depending on the GTIP
- Additional customs duty: Applied on top of this for certain GTIP codes
- VAT base: Calculated on the total of CIF + customs duty + other taxes
- Surveillance value: A minimum value applies to certain GTIP codes; if the declared value is below this value, an additional tax is calculated on the difference
Declaring a lower tax rate using the wrong GTIP will, if detected later, result in retroactive tax + interest + penalties.
How Does GTIP Affect TAREKS, Surveillance and CE Processes?
Beyond taxation, the GTIP code also determines the inspection and documentation requirements the product will be subject to:
TAREKS (Compliance with Technical Regulations and Standards)
Products under certain GTIP codes are subject to TAREKS inspection before import. This inspection verifies that the product complies with the technical regulations and standards in Turkey. For products covered by TAREKS, a conformity document (test report, certificate) is required.
Surveillance Measures
Some GTIP codes are subject to surveillance measures. In this case, if the CIF value of the product is below the specified surveillance value, the import cannot be made, or an additional tax is calculated on the difference. Surveillance is a measure frequently encountered with low-priced products of Chinese origin.
CE Certificate
For certain product groups (electrical devices, machinery, toys, etc.), the CE certificate requirement is determined by the GTIP code. These products cannot be imported without a CE certificate.
Why Is the HS Code Provided by the Supplier Not Enough on Its Own?
The HS Code stated by Chinese or other foreign suppliers on the proforma invoice:
- Covers only the 6-digit international code
- Does not determine the 12-digit GTIP in Turkey
- Does not reflect Turkey-specific tax rates, surveillance and inspection measures
- May have been issued according to the classification in the supplier's own country
- May be incorrect, whether intentionally or not
For this reason, using the HS Code provided by the supplier directly as a GTIP is a major risk. Determining the GTIP must be done by an expert, taking into account the product's technical specifications, raw materials, intended use and Turkish customs legislation.
Cost and Penalty Risks of Using the Wrong GTIP
The consequences of using the wrong GTIP are serious and multifaceted:
Financial Risks
- Retroactive collection of taxes (up to 3 years)
- Late payment interest
- An administrative fine of 1-3 times the underpaid tax
- Additional tax on the surveillance difference
Operational Risks
- The product being held at customs (daily storage cost)
- Additional document and inspection requests
- Cancellation of the import permit
- Return or destruction of the product
Legal Risks
- Smuggling charges (in cases of intentional misdeclaration)
- Creation of a risk profile for the company by the customs authority
- Detailed physical inspection in future imports
To protect yourself from all these risks, having a professional GTIP analysis carried out before ordering is of critical importance. With the GTIP and customs risk assessment service, you can determine your product's correct classification and risk profile in advance.
Pre-Order GTIP Checklist
Before placing an import order, the following GTIP-related checks must be completed:
- The product's technical specifications, raw materials and intended use have been documented
- The 12-digit GTIP code has been determined by an expert
- The customs duty rate has been checked
- The applicability of additional customs duty has been investigated
- Surveillance measures have been checked
- The TAREKS inspection requirement has been investigated
- The CE or conformity certificate requirement has been determined
- The applicability of anti-dumping duty has been checked
- The total tax burden has been calculated
- Tax and inspection costs have been included in the cost calculation
Frequently Asked Questions
How many digits does a GTIP code have?
The GTIP code used in Turkey has 12 digits. The first 6 digits come from the international HS Code, digits 7-8 come from the EU Combined Nomenclature, and the last 4 digits come from Turkey's national regulations.
Who determines the GTIP code?
The GTIP code is determined by a customs broker or import consultant using the Customs Tariff Schedule, taking into account the product's technical specifications, raw materials and intended use. For Binding Tariff Information (BTI), an application can be made to the Ministry of Trade.
What is the penalty for declaring the wrong GTIP?
A wrong GTIP declaration can result in retroactive collection of the underpaid tax, late payment interest, and an administrative fine of 1-3 times the tax. In the case of intentional misdeclaration, smuggling charges may also be brought.
How does a change of GTIP affect the cost calculation?
A change of GTIP can change the customs duty rate, surveillance measures and documentation requirements. This can increase or decrease the total import cost by 10-30%. For the detailed cost impact, you can review the import cost calculation guide.
When should the GTIP check be carried out?
The GTIP check must always be carried out before placing the order. If a GTIP problem is identified after the order, the product is already on its way and unexpected costs are encountered at customs. The professional import cost analysis service also includes a GTIP check.
Related Guides
- How to Import from China | Supplier, Sample and Cost Guide
- How Is Import Cost Calculated? | Door-Delivery Cost Guide
Related Services
- Import Cost Calculation
- GTIP and Customs Risk Assessment
- Overseas Supplier Research
- Sample and Product Verification
- How We Work
Check Your Product's GTIP and Customs Risk Before Importing
Before you place an order, let's assess together your product's correct GTIP code, tax rates and surveillance, TAREKS, CE and documentation requirements.
Request a Preliminary GTIP Assessment | Ask Quickly on WhatsApp