Wednesday, 25 April 2018
Global Value Chain and Customs

Turgut Erkeskin – President of UTİKAD

turgut_erkeskin_utikadIn an era with the speed of the global business volume ascending in an astonishing celerity, the productions systems are getting more complex day by day. Flows of raw materials and finished products are no more limited to one location or country, production and transfer of goods involves synchronization between various partners both in one country and across the borders.

An advanced supply chain network is not only essential to enable good quality and fast transfer on/to the market but also to generate added value to services and products designed and offered worldwide.
Today manufacturers and even governments head towards potentiating their share and activity in the global value chain acting beyond the creation of a competitive edge in speed and cost.
Companies and organizations throughout the world work hand in hand with professional logistics service providers in order to locate and optimize resources of availability, speed, cost and added value. While demands are changing, solution finding is also evolving in terms of transportation technologies and investments in infrastructure. Parallel to advances in the logistics sector, the legislation comes up with appropriate rules, regulations and procedures to support the compliancy and competency of trade actors.
The most important and effective fiscal appliances are to be observed in the customs regulations and the customs clearance procedures. With its integral contribution to the world economy and increasing share in the global value chain, Turkey has now taken some most preferential steps in customs regulation procedures to serve its entire logistics chain.
In order to simplify and accelerate the customs procedures for Turkish exporters following status as;
•    Authorized Economic Operator (AEO),
•    Known Shipper,
•    On-Site Clearance
were recently introduced.

On international level the “Authorized Economic Operator (AEO)” status is practiced by 46 countries with thousands of companies in Europe and the US generating services with this privileged classification. It is obvious that Turkish manufacturers that are qualified to obtain the AEO status will enjoy positive effects on reputation, besides speed and cost. The “On-Site Clearance” procedure is commonly applied throughout all EU countries, and now the Turkish exporters will spare valuable time and considerable fees for customs procedures.
The Turkish logistics sector welcomes these new rules and regulations and hopes for rapid clarification on some particular points such as the acquisition of these status by the logistics service providers and freight forwarders, particularly by non-asset owners. The Turkish Association of Freight Forwarders and Logistics Service Providers UTIKAD enthusiastically supports all actions for ‘Simple Trade’ and believes that 2013 will be a prosperous year for the logistics and transportation sector.
For the simplification and optimization of the customs procedures, however, Turkish logistics service providers are expecting to be granted the authorization to conduct customs filing both in import and export through licensed customs brokers. This is unfortunately not the case yet and will probably add the last link to the cross-border logistics chain.
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