Turkey has once again been on the agenda with additional customs duties imposed on cars originating from China and imported from China. China, the additional customs duties imposed by Turkey this time moved to the World Trade Organisation (WTO). The main reason for the complaint to the WTO was the additional customs duties imposed on cars imported from China. So will this complaint remove the additional tax on cars?
China complained to the WTO about additional customs duty on automobiles
For more than a year, Turkey has been applying a different sanction for vehicles imported from China. These steps taken for both factory incentives and domestic automobile incentives were countered by China and China complained to the WTO against Turkey.
In the statement made, ‘The discriminatory measure taken by Turkey is contrary to WTO rules and is protectionist in nature. We call on Turkey to comply with WTO rules and immediately correct its measures,’ the statement said, demanding Turkey to remove the additional customs duty.
The first additional customs tax was applied for electric cars imported from China, and then an additional 40 per cent tax was imposed on all cars. With the announcements made by the Ministry of Trade, at least 20 authorised service stations must be established in 7 regions of Turkey for vehicles coming from any country other than the European Union and countries with which a Free Trade Agreement has been signed.
In addition, it has been made obligatory for each company to provide service with a Turkish call centre with at least 40 personnel established in Turkey and to have an authorised representative in the country. Finally, hybrid vehicles were included in the additional taxes imposed since September. Among the Chinese companies affected by this obligation are popular vehicle manufacturers such as Skywell, MG, Chery, Seres, BYD.
So how do you think China’s complaint will be evaluated? You can share your thoughts in the comments.
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