Summarize this text with artificial intelligence
Choose your preferred tool to generate a short summary of the text.
In international trade, avoiding confusion in customs taxation is extremely important for both parties. Various methods have emerged to eliminate the confusion that may arise at this point.
One of the universally accepted methods among these is the GTIP (HS) code set by the World Customs Organization.
So, what is a GTIP code, how is it found, and why is it important in international trade? We have compiled everything you need to know about the GTIP code in our blog, keep reading!
What is GTIP?
The acronym GTIP stands for Customs Tariff Statistics Position (Gümrük Tarife İstatistik Pozisyonu). It refers to the 12-digit code in the Turkish Customs Tariff Schedule. The GTIP code is a number that must be specified on the invoice or proforma invoice in import and export transactions.
With GTIP, the description and differentiation of products are ensured during international trade. For this reason, the GTIP code consists of a harmonized system. That is, the GTIP is 12 digits long, and the first 6 digits are common worldwide and cannot be changed.
Regulations regarding GTIP are made by the World Customs Organization, of which Turkey is also a member. The authority responsible for GTIP in Turkey is the Ministry of Customs and Trade.
How Does GTIP Work?
The GTIP code consists of a 12-digit number. The first 6 digits of the Customs Tariff Schedule are common all over the world. The first 8 digits are common in European Union countries. Turkey is the only country that uses the GTIP as 12 digits.
The numbers in the GTIP Code are divided into various groups. The meanings of the GTIP number are as follows:
• The first 4 digits represent the product position.
• The first 6 digits are used by countries that are members of the World Customs Organization (HS Nomenclature Code).
• The 7th and 8th digits are used by European Union countries (EU Combined Nomenclature Code).
• The 9th and 10th digits show the positions opened due to different tax practices (National Sub-classification Code).
• The 11th and 12th digits show the Customs Tariff Statistics (GTIP) codes.
GTIP provides detailed information about the transported product. Precautions to be taken during transport and taxes to be applied are determined via the GTIP. It is beneficial to get support from an expert customs broker for the customs tariff declaration.
What is the GTIP Number Used For?
All products that can be traded internationally have a GTIP code. Thanks to GTIP, customs duty calculations can be easily made by countries, and the tax rates required for international trade are found.
For this reason, the Customs Tariff Statistics Position is a universal system. All companies engaged in foreign trade worldwide mark their products with the relevant GTIP code when shipping, making it easier to classify the products. In this way, transactions to be carried out at the customs of the relevant country gain speed.
Is the GTIP Number Mandatory?
The GTIP number is a mandatory code that must be included on the invoice when importing and exporting. Since it is valid worldwide, the GTIP number is taken into consideration when taxation is carried out at the customs of the country where the products arrive, and in this way...
How is the GTIP Code Found?
You can use TurkStat's (TÜİK) website to search for a GTIP code. After accessing the relevant link and entering your product details, select GTIP 2022 from the classification tab and perform the search.
Afterwards, you can find the GTIP code by locating the row that best describes your product among the results. Later, you can do an HS code query to check the validity of your GTIP code in international trade.
If the results match your product, you can be sure of the accuracy of the GTIP code you found.
How to Get a GTIP Code?
To find your GTIP code, you can use the website of the Turkish Statistical Institute, the Ministry of Trade of the Republic of Turkey, or websites like gumruk.com.tr.
What is Included in the GTIP List?
There are thousands of GTIP codes. Certain categories have been determined to make searching among these codes easier. You can review the product categories in the GTIP list below.
1. | Live animals and animal products |
2. | Vegetable products |
3. | Fats and oils |
4. | Beverages, alcoholic liquids, tobacco and vinegar |
5. | Minerals or mineral substances |
6. | Products of the chemical industry |
7. | Plastics and rubber materials |
8. | Furs, leather and articles thereof |
9. | Wood and articles of wood |
10. | Wood pulp raw materials |
11. | Textile materials suitable for weaving |
12. | Footwear, umbrellas, walking sticks and similar products |
13. | Articles of stone, plaster, cement, asbestos, mica, ceramic products |
14. | Precious stones |
15. | Machinery and mechanical appliances |
16. | Vehicles and transport equipment |
17. | Arms, ammunition and accessories |
18. | Works of art, collectors' pieces and antiques |
Frequently Asked Questions About GTIP Numbers
You can review the questions and answers frequently asked by importers and exporters about the GTIP number, or in other words, the Customs Tariff Schedule.
Where is the GTIP Number Written?
The GTIP number must be included in the exporter's invoice. For this reason, you can see the GTIP number on your invoice.
How Can I Find the GTIP Number of a Product?
You can find the GTIP number of a product by searching on TurkStat (TÜİK), and the websites of the Ministry of Trade and Ministry of Customs.
How Many Digits is the GTIP Code?
The GTIP Code consists of 12 digits. The first 4 digits of these identify the product. The first 6 digits are accepted by countries affiliated with the World Customs Organization.
7 and 8 mean that it is also valid in the customs of European Union countries. Digits 9 and 10 show tax statuses, and digits 11 and 12 refer to the GTIP code itself.
Is the GTIP Code Universal?
The GTIP code is a universal code. It is used and valid in every country that is part of the World Customs Organization.
Who Decides the GTIP Code?
The GTIP code is issued by the Ministry of Customs, operating under the Ministry of Trade. Since the relevant ministry is a member of the World Customs Organization, the code it provides is valid in all import and export transactions.
What Happens if the GTIP Code is Incorrect?
If the GTIP code is misdeclared, and there is underpaid tax by customs, a fine of up to three times the underpaid amount is imposed. If the tariff is subject to inspection such as CE, TSE etc. and the necessary compliance cannot be obtained, the product is seized. Subsequently, a fine of up to twice the customs value is issued.
Customs Value: Total taxes + CIF (cost + insurance + freight) value.
In addition, legal sanctions for violating the anti-smuggling law, seizure of the product, and tax penalties of up to three times its value are imposed. Therefore, one must act very sensitively and be extremely careful on this matter.
How Many GTIPs Exist?
Since a GTIP definition is made for almost every product traded, there are hundreds of thousands of GTIP codes.
Table of Contents
Furkan Aktas
All Posts
