Becoming a successful exporter from Turkey, especially as a novice, requires careful planning, thorough research, and a commitment to quality and compliance.
Here’s comprehensive advice for novice exporters from Turkey.
1. Do Your Homework (Market Research is King)
- Identify Target Markets: Don’t just pick a country randomly. Research which countries have demand for your specific product. Consider:
- Existing Turkish export markets: Germany, USA, UK, Central Asian countries (Uzbekistan, Kazakhstan), Middle East (Iraq, UAE), and North Africa. These often have established logistics and demand.
- Growing economies: Central Asia and Africa, where demand for Turkish manufactured goods and services is rising.
- Cultural affinity: Countries with Turkic or Islamic cultural ties often have a natural inclination towards Turkish products (e.g., Central Asia, Azerbaijan, some Middle Eastern countries).
- Understand Market Needs & Preferences:
- Consumer behavior: What do customers in your target market truly want? Does your product need adaptation (e.g., design, size, flavor, language)?
- Competition: Who are your competitors (local and international)? What are their prices, quality, and marketing strategies?
- Pricing: Research competitive pricing in the target market, considering all export costs (shipping, duties, taxes, agent fees).
- Legal & Regulatory Environment:
- Import regulations: What are the import duties, taxes (VAT), and other tariffs in your target country?
- Product standards & certifications: Does your product require specific certifications (e.g., CE marking for Europe, Halal certification for certain markets)? Are there specific labeling or packaging requirements?
- Prohibited/Restricted goods: Ensure your product isn’t on any restricted list.
2. Understand Turkish Export Procedures & Requirements
- Legal Entity & Tax ID: You need to be a registered legal entity or natural person with a tax ID number.
- Exporters’ Association Membership: You must be a member of the relevant Exporters’ Association for your product category (e.g., Uludağ Textile Exporters’ Association). Your customs declaration will need to be approved by this association.
- Customs Declaration (BİLGE System): All export transactions go through the electronic BİLGE system. You’ll need a user code and password, and potentially an electronic signature.
- Documentation: Prepare accurate and complete documents:
- Commercial Invoice: Essential for most shipments, detailing goods, value, and parties.
- Packing List: Details the contents of each package.
- Air Waybill (for air freight) or Bill of Lading (for sea freight): Transportation contract.
- Certificate of Origin: Crucial for preferential trade agreements (e.g., EUR.1 for EU, ATR for EU, Certificate of Origin for others) to benefit from reduced or zero tariffs.
- Licenses/Permits: Some products require specific export licenses or permits from competent authorities in Turkey (e.g., dual-use goods, certain food products). Obtain these before starting customs procedures.
- Other certificates: Health certificates (for food), phytosanitary certificates (for plants), quality certificates, etc.
- Customs Broker (Gümrük Müşaviri): For a novice, it’s highly recommended to work with a reputable customs broker in Turkey. They have the expertise to navigate complex regulations, prepare documentation correctly, and ensure smooth customs clearance.
3. Master Logistics and Shipping
- Choose the Right Incoterms: Understand Incoterms (e.g., EXW, FOB, CIF, DDP). These define responsibilities, costs, and risks between buyer and seller. For novices, starting with simpler terms like FOB (Free on Board) where the buyer arranges main carriage is often easier.
- Select Shipping Method:
- Air Freight: Fastest, but most expensive. Good for high-value, perishable, or time-sensitive goods.
- Sea Freight: Most economical for large volumes, but slower. Common from ports like Gemlik, Ambarlı (Istanbul), or Mersin.
- Road Freight: Flexible and economical for nearby countries (Europe, Middle East, Caucasus).
- Rail Freight: Growing in importance, especially along the Middle Corridor to Central Asia, offering a balance of cost and speed.
- Work with Reliable Freight Forwarders: A good freight forwarder will manage the entire shipping process, from picking up goods to arranging customs clearance and delivery. Look for those with experience in your target markets and product types.
- Insurance: Always insure your goods against potential risks (damage, loss, theft) during transit.
4. Payment Methods & Risk Management
- Understand Payment Terms:
- Cash in Advance: Safest for exporter, highest risk for importer. Good for small initial orders.
- Letter of Credit (L/C): Highly secure for both parties as banks guarantee payment upon fulfillment of conditions. Often preferred for larger, higher-risk transactions.
- Documentary Collections (CAD/DP/DA): Bank facilitates exchange of documents against payment or acceptance. Less secure than L/C for the exporter.
- Open Account: Goods shipped before payment is due. Highest risk for exporter, usually for established, trusted relationships.
- Assess Importer’s Creditworthiness: Especially for payment methods other than cash in advance or confirmed L/C, conduct due diligence on your buyer.
- Currency Risk: Consider using forward contracts or other hedging instruments if dealing with volatile currencies to protect against unfavorable exchange rate fluctuations.
5. Financial Support & Incentives
- Eximbank (Türk Eximbank): This is a crucial resource for Turkish exporters. They offer:
- Export Credit Insurance: Protects against commercial and political risks of non-payment.
- Short, Medium, and Long-Term Loans: Tailored financing for various export needs.
- Guarantees: To facilitate access to bank loans.
- Ministry of Trade Incentives: Türkiye offers various state incentives for investments and exports, including VAT exemption, customs duty exemption, and tax reductions for certain types of investments and exports (e.g., high-tech products, investments in specific regions).1Research these programs.
- KOSGEB (Small and Medium Enterprises Development Organization): Provides support programs for SMEs, including those looking to export.
6. Marketing and Sales
- E-Export (E-İhracat): Consider online platforms. Turkey is actively promoting cross-border e-commerce. Selling through global marketplaces (e.g., Amazon, Alibaba, specialized platforms) can be a low-cost entry point.
- Trade Fairs & Exhibitions: Participate in relevant domestic (e.g., IFCO, WorldFood Istanbul, Heimtextil) and international trade fairs. This is excellent for networking, market research, and finding buyers.
- Digital Marketing: Build a professional website in English and target market languages. Use social media, SEO, and online advertising to reach potential international buyers.
- Local Partnerships: Consider working with local distributors, agents, or joint ventures in target markets. They understand the local landscape and can facilitate market entry.
7. Common Pitfalls to Avoid
- Insufficient Market Research: Don’t assume demand; verify it.
- Neglecting Regulations: Compliance is non-negotiable; errors lead to delays and fines.
- Inadequate Documentation: Incomplete or inaccurate paperwork is a primary cause of customs issues.
- Underestimating Costs: Factor in all expenses (logistics, duties, insurance, marketing, potential returns).
- Poor Communication: Maintain clear and consistent communication with your buyers and partners.
- Ignoring After-Sales Service: Crucial for building long-term relationships and reputation, especially for machinery and electronics.
- Lack of Insurance: Don’t risk uninsured shipments.
- Not Seeking Professional Advice: Leverage experts like customs brokers, trade consultants, and international lawyers.
Starting to export can be challenging, but with Turkey’s strategic location, growing manufacturing base, and government support, it offers immense opportunities.
Begin small, learn from each experience, and continuously adapt your strategy.
For more guidance and consultancy, please feel free to contact STARTINFORUM team to set a call or an online meeting.