Contents 9 sections
- What Is Import?
- What Is Foreign Trade? What Are the Differences Between Import and Export?
- Permits and Documents Required for Import
- How Is Import Done?
- What Are the Advantages of Importing?
- What Are the Disadvantages of Importing?
- Who Can Import? How Do You Become an Importer?
- Types of Import
- Frequently Asked Questions (FAQ)
Import is the process of bringing goods or services from other countries. This simple definition helps us understand why it is so important for our economy. Import allows us to benefit from resources around the world, increase variety and meet our needs across a wider range. So how does this process work, and what should you pay attention to as a business owner when importing?
In this article, we will cover the basic steps of importing, the legal procedures you need to pay attention to and the importance of this process for businesses in a simple and clear way. Whether you are a large business or run a small e-commerce site, learning the basics of importing will put your business a step ahead. That way, by bringing in products from all over the world, you can offer your customers a wider choice and grow your business.
Now, let us take a closer look at what import is and how it is done.
What Is Import?
Import is the act of bringing something (goods or services) made in another country into our country. For example, we want to eat a delicious chocolate made in another country here in our country too. Bringing that chocolate into our country is import. For the country selling the chocolate, this transaction is export, that is, selling abroad. So import and export are actually linked; while one country imports something, the other country exports the same thing.
There is one important thing when importing: a country should not buy far more than it sells. That is, if the amount of chocolate we buy from other countries is much greater than the products we sell to other countries, this is not good for the country's economy and a problem called the current account deficit arises. A current account deficit can cause a country's economy to deteriorate. That is why it is important to have a balance between buying and selling.
Looking at Türkiye specifically, according to April 2023 data from the Turkish Statistical Institute (TÜİK), Türkiye imported mostly from Russia, China, Germany, Italy and the USA. In exports, it sold mostly to Germany, the USA, Iraq, Italy and the United Kingdom. This is important information showing Türkiye's trade with the world.
Okumanızı öneririzE-ihracat Nedir? E-ihracat Nasıl Yapılır?What Is Foreign Trade? What Are the Differences Between Import and Export?
Foreign trade is the term for the buying and selling a country does with other countries. This is examined under two main headings: import and export. So what are the differences between the two? Let me explain in simple terms:
- Import: Import means acquiring goods or services from another country. In other words, we bring things into our country from outside. For example, buying a phone produced in another country so that people in our country can use it.
- Export: Export is the opposite, that is, selling something produced in our country to other countries. For example, sending a garment produced in Türkiye so that people in another country can wear it.
The basic difference between import and export is that one is the act of “bringing in” (import) and the other the act of “sending out” (export). Together they make up foreign trade and play a major role in a country's economy. While export helps the country earn money, import offers the country more variety and choice.
For foreign trade to be conducted in a healthy way, it is important to have a balance between import and export. If a country imports too much and exports too little, this can lead to a current account deficit and economic imbalances. Conversely, if it exports too much, in some cases this can make it difficult for the country to meet its own needs. The ideal is to find a healthy balance between the two.
Okumanızı öneririzAvrupa'ya E-İhracat Yapmak İçin Bilmeniz GerekenlerPermits and Documents Required for Import
There are some important permits and documents that everyone who wants to import, especially those doing so for the first time, should take into account. Here are the main documents you will need in this process:
Tax Number and Customs Registration: The person or company that will import must have a tax number. If importing for the first time, registration with the Customs Administration is required. The documents required for this registration are:
- For legal entities: signature circular, certificate of activity, trade registry gazette, tax liability letter.
- For natural persons: signature declaration.
- A power of attorney if the transaction will be carried out through a representative.
- Copies of the authorized persons' identity documents.
- Procedures and Legislation for Products: Depending on the type of product to be imported, different procedures and legislation must be followed. At this stage, the taxes the product is subject to must be paid and permits obtained if necessary. Completing this process correctly ensures the products pass through customs smoothly.
- Import Regime Certificate (IRC): This document shows which categories the products to be imported belong to and is important for import transactions.
- Invoice: An official document showing the sales prices of the imported products, and it is mandatory in every import transaction.
- Certificate of Origin: An official document certifying which country the products to be imported come from.
- Analysis Reports: They show the quality of the products and their compliance with standards, and may be mandatory for some products.
- Insurance Policy: Insurance that must be taken out to cover losses if the products are damaged or lost during transport or at customs.
How Is Import Done?
Import, when done correctly, can provide significant benefits to businesses, but it also involves some challenges and risks. Here is the import process and its advantages and disadvantages:
Import Process
- Product Selection: The first step is to determine the products to be imported. It is important to make sure these products will be in demand in the market and suit your business's needs.
- Preparing the Documents: Preparing and organizing the documents mentioned earlier (tax number, Customs Administration registration, Import Regime Certificate, invoice, certificate of origin, analysis reports, insurance policy).
- Customs Duties: Paying the necessary customs duties before the products reach customs.
- Customs Procedures: The procedures for clearing the products through customs; at this stage it is important that all documents and payments are correct and complete.
- Payment and Shipping: Payment for the products and shipping once customs procedures are completed.
What Are the Advantages of Importing?
- Low Cost, High Profit: By importing high-quality products at low cost, you can increase your profit margin.
- Product Variety and Quality: The opportunity to obtain the best-quality products worldwide.
- Tax Incentives: Tax reductions or incentives for some specific products.
- Market Diversity: Offering new and different products to the market.
- Industry Leadership: A chance to stand out in your industry by differentiating yourself from competitors.
- Expanding Target Audience: Broadening your customer base.
- Government Support: Benefiting from various government incentives and support.
- Increased Employment: It can create new job opportunities and areas of employment.
What Are the Disadvantages of Importing?
- Impact on Domestic Industry: Import can negatively affect domestic production and industry.
- Economic Effects: It can affect the country's Gross National Product (GNP) and economic growth.
- Return Processes: Return and exchange processes for imported products can be complicated and lengthy.
- Monopolization in Production: Monopolization in production processes and the risks it brings.
- Licenses and Documents: The process of obtaining the licenses and documents required for import can be complicated and costly.
Who Can Import? How Do You Become an Importer?
There are certain conditions and processes for importing. As stated by the Ministry of Trade of the Republic of Türkiye, this process is open to everyone but includes some important steps.
Who Can Import
- Persons with a Tax Number: Under the Tax Procedure Law, every natural and legal person who has been assigned a tax number can carry out import transactions. This includes companies, sole proprietors and foreign businesses that have a representative office or branch in Türkiye.
- Persons with Legal Capacity to Act: Persons granted the authority to carry out legal acts under current legislation, and their partnerships, can also import.
- Special Cases: In some special cases, for example in the import of books and other publications or at international fairs and exhibitions held in Türkiye, those without a tax number can also import.
The Process of Becoming an Importer
- Obtaining a Tax Number: The first step is to apply to the tax office affiliated with the Ministry of Treasury and Finance to obtain a tax number. This applies to natural or legal persons.
- Preparing the Necessary Documents: To import, the documents mentioned above (tax liability, customs registration, Import Regime Certificate, etc.) must be prepared.
- Compliance with Procedures: In import transactions, it is important to act in accordance with the relevant legislation and procedures. This includes customs procedures, tax payments and obtaining the necessary permits.
- Commercial Activities: Import is usually carried out for a commercial purpose. Therefore, the person or company importing is expected to carry out a commercial activity.
These steps summarize the basic requirements and processes that apply to everyone who wants to import in Türkiye. Import is a transaction that requires careful planning and acting in accordance with legal procedures.
Okumanızı öneririzAlmanya’ya e-İhracat Yapmak Hakkında Bilmeniz GerekenlerTypes of Import
Import is divided into various types according to the products and purposes involved. Here are the characteristics of these types:
- Commercial Import: This type is import carried out for commercial purposes. That is, companies purchasing products or services from abroad and either selling them directly or processing them before offering them for sale. This type of import is generally done for retail sales and commercial activities.
- Industrial Import: Industrial import is the import of raw materials, intermediate goods and semi-finished products brought from abroad for use in the manufacturing industry. This type of import is generally done to support production processes and develop domestic industry.
- Consumption Import: Import carried out for the daily use of individual or corporate consumers. It generally covers products aimed at the end consumer and is done directly to meet consumer needs.
- Investment Import: The import of goods and services needed to make it easier for foreign investors to invest in the country. This type of import is generally seen in large-scale investment projects and infrastructure construction.
- Service Import: The import of services obtained from abroad in sectors such as tourism, finance and telecommunications. This type of import generally includes services that require knowledge, experience and technical expertise.
- Transit Import: Goods and services purchased from abroad are held temporarily within a country's borders and then sent on to another country. This type is generally important in logistics and international transport operations.
Each type of import is structured with different needs and purposes in mind and plays various roles in economic activities. Each of these types involves specific advantages and challenges and is chosen according to the needs of businesses or individuals.
Frequently Asked Questions (FAQ)
What Is Import?
Import is the process of a country purchasing goods or services from another country. This process provides economic diversity and offers consumers a wider range of products.
What Documents Do I Need to Import?
The main documents required for importing are a tax number, customs registration, an Import Regime Certificate, an invoice, a certificate of origin, analysis reports and an insurance policy.
What Are the Advantages of Importing?
The advantages of importing include greater product variety and quality, cost advantages, tax incentives and increased competitiveness in the market.
What Are the Disadvantages of Importing?
The disadvantages of importing include negative effects on local industry, economic imbalances and complicated return processes for imported products.
What Are the Types of Import?
Types of import can be listed as commercial import, industrial import, consumption import, investment import, service import and transit import.
Who Can Import?
Any natural or legal person with a tax number, as well as those legally authorized to carry out legal transactions, can import.
How Does the Import Process Work?
The import process involves first determining the products to be imported, preparing the necessary documents, paying customs duties and completing customs procedures.
