Turkish Grain Board Authorized to Import 4.2 Million Tons of Grains May 4, 2014
Due to dry weather conditions and poor crop development in Central Anatolia and Cukurova, the Turkish Grain Board (TMO) received authorization to import 4.2 million tons of wheat, barley, rice and corn at a zero customs duty.
A Cabinet of Ministers Decision published in the Official Gazette on April 19, 2014 authorizes the Turkish Grain Board (TMO) to import up to 4.2 million tons of wheat, barley, rice and corn at a zero customs duty. TMO is an intervention agency and generally if there is problem in the upcoming harvest, TMO receives this authorization for two reasons. First, it gives a signal to discourage traders from speculating in the market. Second, it aims to stop price increases and inflation on wheat and barley products for consumers. Traders believe that TMO will begin using some of the allocations in September and October through import tenders.
Due to the dry weather conditions in Central Anatolia and Cukurova region, wheat and barley yields in 2014 are expected to be down from 2013, and lower than earlier estimates. Crop development is particularly bad in Central Anatolia where some farmers have already plowed under crop.
DECISION ON THE APPLICATION OF TARIFF QUOTA ALLOCATION
TO BE USED BY TMO GENERAL DIRECTORATE
FOR WHEAT, BARLEY, CORN AND RICE
(Decision # 2014/6169, Dated: 04/16/2014)
ARTICLE 1 – (1) In scope of the “Decision concerning import quota and tariff allocation management” put into effect by the Cabinet of Ministers decision on 04/174/2010 and numbered 2010/339; the table below with HS Codes indicate the tariff allocation amounts assigned to TMO General Directorate.
Customs Tax (%)
Validity of Authorization
10.01 – Wheat
May 31, 2016
10.03 – Barley
May 31, 2016
10.05 – Corn
May 31, 2016
10.06 – Rice
September 01, 2016
ARTICLE 2 – (1) Tax percentages shown in the table will apply for imports made within the tariff allocation amounts under the content of the same commodities above. Imports apart from these will be subject to the customs tax within the scope of import regime decision for subject commodities.
ARTICLE 3 – (1) Import licenses will be issues by the Ministry of Economy (Imports GD) for imports conducted within the scope of this decision.
(2) The import licenses issued within this decision will be valid until 05/31/2016 for wheat, barley and corn and 09/01/2016 for rice.
(3) The free entry declarations for commodities imported within the scope of this decision must be approved within the validity of the issued import license.
(4) Import licenses cannot be transferred to third parties.
ARTICLE 4 – (1) For matters that are not covered in this decision, the Import Regime decision and other related regulation rules will apply.
ARTICLE 5 – (1) This decision will take effect on date published.
ARTICLE 6 – (1) The Ministry of Economy applies this decision.