The European Union and Turkey share a deep-rooted trade relationship, with Turkey ranking as the EU’s sixth-largest trading partner in 2022. This robust partnership is governed by two pivotal agreements: the EU-Turkey Customs Union and the free trade agreement. While the Customs Union primarily covers industrial products, the free trade agreement encompasses steel, coal, and the majority of agricultural commodities.
Purpose of an ATR Document
An ATR document, or ATR certificate, serves as a testament that the goods in question have already entered free circulation within either the European Union or Turkey. This certification signifies that the products have undergone all necessary import procedures, granting them duty-free status when traded between the two entities.
It’s crucial to note that an ATR document is distinct from a certificate of origin. While the latter establishes the manufacturing source of a product, an ATR certificate merely confirms its free circulation status within the EU-Turkey trade bloc.
Benefits of an ATR Document
By presenting an ATR document during the import process, businesses can bypass the payment of customs duties that would typically apply to goods originating from non-EU countries. This significant cost savings makes the ATR certificate an invaluable tool for companies engaged in EU-Turkey trade.
Conversely, failure to provide an ATR document during import or export transactions with Turkey may result in the application of standard non-EU customs duties, potentially increasing operational costs and eroding profit margins.
Scope and Limitations of the ATR Document
While the ATR document facilitates duty-free trade for most industrial goods, it is essential to recognize its limitations. Certain products, such as steel, coal, and the majority of agricultural commodities, fall under the purview of the EU-Turkey free trade agreement and require alternative documentation, such as an EUR.1 certificate or a EUR-MED certificate.
Obtaining and Validating ATR Documents
Companies with the appropriate permits can self-certify ATR documents, streamlining the process for frequent traders. However, for those without such permits, the Customs Authority in the EU or Turkey plays a pivotal role in validating and issuing ATR certificates.
It’s worth noting that a certified ATR document remains valid for four months from the date of issuance by the respective Customs Authority.
Post-Brexit Implications for UK-Turkey Trade
Following the United Kingdom’s departure from the European Union, the use of ATR documents for trade between the UK and Turkey has been discontinued. Instead, the UK has established a separate trade agreement with Turkey, necessitating the use of origin statements or preferential origin certificates to claim duty-free entry for goods of Turkish origin.
Frequently Asked Questions
- Can an ATR document be used for agricultural products traded between the EU and Turkey?
No, an ATR document cannot be used for most agricultural products. These commodities are covered under the EU-Turkey free trade agreement and require an EUR.1 certificate or a EUR-MED certificate instead. - Is an ATR document the same as a certificate of origin?
No, an ATR document is not a certificate of origin. While a certificate of origin establishes the manufacturing source of a product, an ATR certificate merely confirms that the goods have already entered free circulation within the EU-Turkey trade bloc. - How long is an ATR document valid for?
A certified ATR document issued by the Customs Authority in the EU or Turkey remains valid for four months from the date of issuance.
