In May, Turkey will restore the duty on grain imports
Turkey will restore a 130% tariff for countries that export agricultural products. This almost does not apply to Ukrainian grain, as it mostly goes in transit.
From Monday, May 1, 2023, Turkey plans to restore import duties on key grain crops for all exporting countries. It will amount to 130% and applies exclusively to the following crops: wheat, barley, corn, rye, oats and sorghum.
“Turkey is a major importer of Ukrainian wheat. However, this duty does not apply to the greater part of Ukrainian grain, as our products are imported to Turkey mainly for sale in third countries, and no duty is paid for it,” the Ministry of Agricultural Policy of Ukraine reports.
There are currently two customs regimes for imports in Turkey:
• The first, for products used for domestic consumption. It was for such products that the Turkish government announced a temporary zero duty rate. This preferential regime has now expired.
• The second, for products that go on sale in third countries before or after processing. There is no toll fee for this mode.
Ukraine mainly supplies products to Turkey under the second customs regime.
“If we talk in terms of percentages, about 5% of all exports to this country go to Turkey under the first regime for which the duty is refunded,” the department added.
According to the results of the first quarter of 2023, Turkey imported Ukrainian wheat worth 168.8 million dollars, which is 17.7% of all its imports.
As previously reported by USM, in September 2022, the Turkish government decided to increase the import duty on sunflower oil from 0% to 10%. The reason was the rising prices on the world oil market and the desire to “protect” one’s own producer.