Solutions against cost increases in foreign trade

Sercan Bahadır

Considering the issues such as fractions in supply chains, increases in commodity prices, surges in freight costs; these point out that 2022 will be quite a different year. In addition to this, rising foreign exchange rates and increases in customs clearance costs indicate that companies will have a more cost-focused year. First of all, it is important to bring to the agenda carrying out imports in Turkish Liras, with a view to protection against exchange rate risks. Moreover, it is absolutely necessary to take into account obtaining an AEO status which reduces customs costs, and making the most of its opportunities, and the advantages such as inward processing regime and investment incentive certificate which are commonly used. Apart from these, there are many incentives related to exports. Benefitting from these advantages will also contribute to reducing the total costs incurred in foreign trade.

Explanations in this article reflect the writer's personal view on the matter. EY and/or Kuzey YMM ve Bağımsız Denetim A.Ş. disclaim any responsibility in respect of the information and explanations in the article. Please be advised to first receive professional assistance from the related experts before initiating an application regarding a specific matter, since the legislation is changed frequently and is open to different interpretations.