A significant legislative change has come into effect, closely affecting consumers considering purchasing entry-level smartphones. With the decision published by the Ministry of Trade, the customs supervision value threshold applied to smartphone imports has been increased from $200 to $250. This regulation, effective today, has the potential to directly increase the tax base for devices whose customs value is below $250.

For importers who cannot prove the actual import value of the device with documentation, the increase in costs brings with it the risk of an increase of up to 5,000 TL for affordable phone models.

What does the customs supervision value decision mean?

The unit value referenced in customs declarations for electronic goods imported into Turkey is defined as the “customs supervision value”. The main goal of this application is to prevent tax losses caused by declaring goods below their actual value from abroad and to protect domestic production. Under the new regulation, all smartphones with an import value below $250 are subject to customs clearance.

If the importing company cannot prove, with complete and accurate manufacturer documentation, that the unit price of the ordered device is below $250, the customs administration automatically calculates the unit value of the product at $250. While this does not directly mean an additional fee is charged to the importer, it leads to a chain reaction of increased costs because it raises the tax base.

How does the 5,000 TL increase calculation come about?

For a device with an import value between $200 and $250 that cannot be documented, the $50 difference at customs creates an increase in the tax base of approximately 2,400 TL based on the tax-free price. However, when indirect taxes applied to smartphone imports are added, this difference is reflected much higher to the consumer.

The effect of the tax base increase on taxes is as follows:

• Tax-Free Tax Base Difference: 2,400 TL (Approximately 50 USD)

• Ministry of Culture Share (1.2%): ~28 TL

• TRT Bandrol Fee (12%): ~291 TL

• Special Consumption Tax – SCT (50%): ~1,360 TL

• Value Added Tax – VAT (20%): ~816 TL

• Total Additional Cost Burden: ~4,895 TL

With the addition of all these tax items, a phone below the inspection threshold could see an increase of approximately 5,000 TL in its retail price. According to this calculation, the price of an entry-level model previously sold for around 10,000 TL could approach the 15,000 TL mark.

Which models will be affected by the price increases?

Not all smartphones on the market are affected by this regulation. There is no change in the tax base for mid-range and upper-range devices with an import value above $250. Therefore, no price increase is expected for flagship or upper-mid-range models due to this decision.

The impact is concentrated entirely on entry-level and lower-mid-range models with an import value below $250. However, the determining factor here will be the companies’ certification capacity. Brands that can fully submit manufacturer invoices and actual costs to customs administration during import processes can maintain their current pricing policies without increasing their value.

For importers who cannot document the process or who are forced to directly increase the customs value to $250, price updates seem inevitable.