Companies that intend to export to Turkey can benefit from a favorable environment, as Italy's economic and trade relations with the country are excellent, with Italy consistently ranking among its major trading partners.
In the first quarter of 2024, compared with the same period last year, Italian exports to Turkey recorded a 25.9% growth, reaching a volume of 4,445.92 million euros. After Germany, Italy is the second largest exporter to the nation.Italy's main exports to Turkey include machinery and mechanical equipment, transportation equipment, basic metals and metal products (excluding machinery and equipment), and products of other manufacturing activities.
Italian companies have also achieved notable successes in public procurement, winning major public works projects in this territory, such as in the railway sector.
Economic cooperation between Italy and Turkey is developed along three main lines: a Italian participation in Turkey's infrastructure development, the established presence of large Italian industrial groups in Turkey's main industrial clusters, and the significant role of Italian banks.
Government visits between the two countries are frequent and regular, helping to further strengthen their economic and trade relations.
Italy is Turkey's fourth largest supplier, covering 5.9% of total exports according to the latest data (January-May 2024).
Imports and exports between Italy and Turkey are regulated by the’EU-Turkey customs union agreement, in effect since January 1996, which allows the free movement of goods between the two territories. This agreement has significantly increased trade between the nation and European countries. Thanks to the customs union, duties and taxes have been eliminated on imports of industrial goods from the EU, with some exceptions such as steel products, regulated by the European Coal and Steel Community Treaty, and processed agricultural products, included in Annex I of the Treaty of Amsterdam.
However, the Turkish government enforces some customs barriers and requirements to protect local production, which need to be considered by companies wishing to export to Turkey.
Goods produced or released for free circulation in the customs union can be transported between the EU and Turkey provided that they present the A.TR. certificate., certifying the customs status of the goods. This certificate, issued by the customs authorities of the exporting country, must be submitted to the customs of the importing country within four months of issuance.
For companies interested in export to Turkey, it is important to know that the country applies both rules of origin preferential than non-preferential. Since 1996, under the customs union with the EC, it has adopted the same rules of origin as the EC for imports from third countries. Non-preferential rules of origin attribute the origin of the product to the country of production or the last substantial processing location, while preferential rules are based on specific trade agreements.
The import regime is governed by the customs law no. 4458 and by the Import Framework Decree. The documentation required for customs clearance of goods includes the following documents, in addition to the goods movement certificate:
In Turkey, five temporary tariff schemes offer concessions for goods that stay in the country for a limited period:
Relations between Italy and Turkey are proving increasingly fruitful, confirming a positive trend that has lasted for more than a decade.
As proof of this, the Embassy of Italy in Turkey celebrated the first National Made in Italy Day in Ankara on April 15. This day, created to celebrate Italian excellence and creativity, coincides with the anniversary of Leonardo Da Vinci's birth.
The initiative is part of the many integrated promotional activities that the Embassy carries out in collaboration with Sistema Paese Italia to support, enhance and protect Made in Italy in the nation.
What are the areas of interest for Italian companies wishing to embark on a path of internationalization in Turkey?
This sector is one of Turkey's major import categories, right after some raw materials, with Italy among the largest suppliers, especially for textile, agricultural, metalworking, plastic, wood, marble, leather and footwear machinery, as well as packaging. Turkey is developing a growing capacity to produce mid-level plants independently, establishing itself as an international producer. As a result, the most promising prospects for product marketing in this sector in the country will increasingly involve advanced and sophisticated machinery.
Turkish industry's increasing focus on finished product quality has increased the demand for high-quality fabrics and yarns. Italy plays a key role as the main supplier of fabrics and yarns to Turkey and as one of its most important customers.
It is also crucial to consider technical textiles, which have applications in various fields such as medicine, automotive, agriculture and upholstery textiles.
Therefore, this industry represents an attractive opportunity for companies interested in export to Turkey.
Despite the fact that the sector contributes significantly to nanotechnology, biochemistry, genetics and organic chemistry, it remains interconnected with all manufacturing sectors, including textile-clothing, home appliances, mechanical instrumentation, rubber and plastics, construction and automotive. This characteristic makes it one of the most significant items in Turkey's imports. Here, too, Italy remains among the leading exporters to the country, with a predominance of small and medium-sized enterprises.
Turkey is enhancing expertise in these areas by encouraging research through the creation of technology parks and greater interaction between companies and universities. This approach opens up attractive commercialization opportunities, especially in niche sectors in which Italy excels, such as software packages, data transmission, telecommunications and security. In addition, industrial and agricultural biotechnology, along with the defense electronics sector, show considerable potential for development.
Octagona, an expert in the services of internationalization of enterprises, offers strategic consulting and targeted support for companies interested in export to Turkey.
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