Are you interested to expand and start an export-import business with companies in Turkey? Perhaps you are a local Turkish entrepreneur, looking to expand and export to Europe? This country provides business opportunities for both – to the local entrepreneurs who are planning to start their own exporting or importing business inside Turkey. Also for entrepreneurs located in others countries, looking to export to Turkey or import from there.

Turkey is a unique country, with 97% of Asia and 3% of the continent of Europe, but development and prosperity follow European standards and speed. Turkey is a “fertile land” for those who want to start and grow their international business. Becoming successful requires hard work, dedication, and lot of pre-work. All starts from research and analyzing to find suitable business opportunities just for you.

So, how to start an import-export business in Turkey, how to succeed? What are the main export and import sectors and products? How to export or import step-by-step, what are the procedures? The article will give answers to all the above and other related questions and will give you many export-import business ideas.

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Let’s start with an overview of the Turkey economy and its specifics first.

The Turkey export-import sectors and economy

Turkey is a large country and is active in foreign trade. Turkey’s economy ranks sixth in Europe and the top 20 largest economies in the world by PPP. Turkey’s population is comparable to Germany.

Country government plans to make the country to be on the list of the ten largest economies in the world. In the ten fastest-growing cities, Turkey’s city Izmir has reached the 3rd rank in the world, ahead even the Hangzhou of China. Strong business culture and supportive measures have been making it easy to turn growing cities into early production centers to export goods to Europe. Turkey is also called as one of the newly industrialized countries.

Turkey has various natural resources including metals and has a competitive business environment for industrial production and manufacturing. It has a low-cost but relatively skilled workforce. All that is required to become a production powerhouse. This is the reason many international companies have set up their production units in Turkey.

It is connected with Europe, it has land borders with Bulgary and Greece which belongs to the EU, and it has a trade agreement with Europe. Turkey local manufactures have a great business opportunity to export their locally produced goods to European Union countries and elsewhere. Of course, first, it must be made clear, what kinds of products have the greatest potential for export.

The country has developed the mining industry, exploiting 900,000 tons of chromium/year (ranked first in the world). Oil reserves are about 139 million tons. Oil production is about 3 million tons/year. Still must import crude oil, accounting for 10.5% of the total import value. There are also coal, copper, and boron.

Turkey can be also considered an agricultural country, about 20% of the population is occupied in agriculture. That’s why one of the main export products are vegetables, fruits, textiles. But on the other hand, because it is also an industrial country, it exports also iron, steel, transport equipment, machinery, HVAC equipment. The main import items are machines, chemicals, semi-finished goods, fuels, and transport equipment.

Some main trade partners: Germany, England, Italy, Russia, France, Spain, China, USA.

Advantages and disadvantages of doing business in/or with Turkey

Either you are planning to start exporting out from Turkey or you are from abroad and looking to do business with the local companies, it is important to understand the main advantages and disadvantages which can directly on indirectly affect your business.

Main advantages if doing business in or with Turkey

  • Land borders with EU countries.
  • Trade agreements with EU.
  • The business environment is attractive for production and manufacturing and agricultural production.
  • Products manufactured in Turkey have price advantages over EU-made products, which means easier entry to the European market.
  • Turkey has local natural resources, various raw materials can get from the local market, no need to import.
  • Additionally, Turkey has land borders with other low costs and resource-rich countries which provide raw materials and minerals like Georgia, Armenia, Azerbaijan. All this helps make Turkey even more competitive.
  • Large and developing cities like Izmir have increasing purchasing power, which means locals can afford European-made brand products. Means business opportunities for local importers and foreign exporters from Europe.
  • English and Russian languages are widely spoken which are important business languages.

Main disadvantages if doing business in or with Turkey.

  • Lira has decreasing purchasing power against USD and EURO and the rate is not stable.
  • Turkey has still a large trade deficit, which results in high inflation.
  • The country has a border with an unstable county – Syria in the southeast.
  • Turkey has inside tensions and Islamic movements, especially in the southern-east side.
  • The political system is different from the European one, the laws and rules can change rapidly results in less stability and uncertainty, and can make investments riskier.
  • Turkey standards are different than European, if exporting, sometimes extra costs to standardize the products for EU.
  • Local culture (mix of Asian and western) and traditions can be hard to understand. Before doing business, deep understanding is required. Local partner, the consultant is highly recommended!

We also suggest to read: Advantages and disadvantages of exporting.

What do Turkey export and imports?

During the first five months of 2019, Turkey’s exports reached $ 76.6 billion with an annual increase of 5.37%. Compared to the same period, the country’s import amount reached $ 87.1 billion, down 19.86% compared to the same period in 2018.

Turkey’s foreign trade balance has recorded a significant improvement, standing at a deficit of 10.5 billion dollars compared with the deficits of 36 billion dollars in the same month last year.

Preliminary data also revealed that the ratio of export-to-import coverage was 87.9% between January and May.

The government expects export earnings to increase to $ 108 billion by 2021.

Main export products of Turkey

Below are data of main export and import products and categories. Some data is from an older period, some more updated, but the main proportions remain the same at the current date.

Minerals

In 2020, export volume in the Turkish mining industry reached $ 4.3 billion. In August, exports increased by 7%, China topped the importers of mineral products from Turkey, worth the US $ 1.66 billion of products: natural stone, copper ore, chromite ore, and precious metals.

Fresh vegetables

Export turnover of fresh vegetables and fruits from Turkey reached a total value of $ 1.31 billion.

Topping the most exported fruits is cherries with a total value of 150.27 million USD, followed by strawberries, grapes, and apricots. Export products to Russia, in which fresh fruits and vegetables recorded the highest export with nearly 500 million USD.

Fresh tomatoes are also the most exported of fresh vegetables with a total value of $ 419.32 million. The amount of exported fresh fruits and vegetables via air cargo, up to the US $ 3.2 million, is to Hong Kong, followed by Norway at the US $ 2.2 million and Singapore with the $ 1.3 million.

Textiles

Turkey has produced clothes for many famous Western European and American fashion brands such as Versace to Benetton, Wal-Mart, and Carrefour in the past two decades. Among the items, suits, jackets, skirts for women, and suits, jackets, pants for men are the most exported product groups in the woven apparel group.

Export markets of Turkey’s textiles are mainly European countries (Russia, Italy, Germany, Rumania, Poland), the Middle East, and the US.

The major textile producing regions are Istanbul, Izmir, Denizli, Bursa, Kahramanmaraş, and Gaziantep. There are famous production and trading of textiles and garments such as Laleli – Aksaray, Nisantasi – Sisli, in Istanbul. There, they produced goods and gathered them to bring to regions and countries in Europe.

Vehicles

Turkey’s automobile industry has 16 manufacturing enterprises, producing individual vehicles, buses, vans, pickup trucks, light and medium buses, tractors. With a total design capacity of about 1.6 million units/year, actual output in 2019 reached 1,380,000 units of all kinds (including tractors). Now, because of the global energy transition, companies are developing local electrical vehicles.

Currently, Turkey is Europe’s largest producer of chucks and buses.

Turkey is also an exporter of CBU and large CKD vehicles in the world.

In 2019, Turkey’s exports of automobiles and components reached 28.4 billion USD, accounting for 14% of total merchandise export turnover. The main export markets of Turkey are France, England, Italy, Germany, Belgium.

Chemicals

Turkey has the largest soda factory in the Middle East, with an export capacity of 750,000 tons/year. As the top five countries supplying chrome ore to the world market, Turkey produces and exports some chrome chemicals and solvents such as sodium bichromate, base chrome sulfate, chromic acid, and chrome oxide.

Turkey exported chemicals to 180 countries around the world. The importing countries are Egypt, Iraq, Germany, Russia, Malta, UAE, Iran, United States, United Kingdom, and Greece.

Machines

Turkey’s total machinery exports reached $ 6.11 billion. The machinery exports increased the most, including engines, components, industrial air conditioners, coolers, etc. This sector presents great opportunities and this sector is supported by government.

Machinery for construction and mining, food industry, pumps, and compressors are the most exported items to Germany.

Apart from Germany, Turkey also exported machinery to Iranian markets with a total turnover of 414.56 million USD, the UK with 322.08 million USD, Russia with 301.52 million USD, Iraq with 265, 04 million USD, France 220.76 million USD, Italy 236.55 million USD, Azerbaijan 190.44 million USD, and Saudi Arabia 161.56 million USD.

Main import products of Turkey

Textiles

Turkey also imports textiles and apparel, mainly clothing, cotton, and synthetic fibers of all kinds. Countries exporting clothes to Turkey include Italy, Spain, China, Great Britain, Germany, France, Bulgaria, India, Greece, and the Netherlands. Countries exporting yarn and textiles to Turkey include the US, Italy, Germany, China, India, Vietnam, South Korea, Pakistan, Indonesia, and Greece.

Raw materials for plastic production

Turkey imports about 10 billion USD of plastic materials annually. Turkey imports plastic products from more than 100 countries in the world. 63% Plastic imported from Saudi Arabia, Germany, Belgium, the Netherlands, South Korea, Spain, Italy, France, and the USA.

Woods

Turkey’s housewares industry has two product lines: long-term appliances (also called “white” appliances) and other small items. To support its re-export, Turkey has to import a large number of household goods every year. In 2019, the import volume of these items reached nearly 2.1 billion USD.

The countries exporting home appliances and wooden products to Turkey are China, Germany, Thailand, Poland.

Cashew nuts

Turkey imports raw cashews for processing and serving domestic demand from some African countries such as Mozambique, a country specializing in exporting raw cashew nuts. Mozambique has surpassed India in terms of volume imported into Turkey, with approximately 200 tons. This category presents export opportunities for southeast Asian countries, especially for cashew exporters in Vietnam.

Natural rubber products

Turkey imports about $ 0.5 billion of natural rubber from Thailand $ 89 million from Indonesia, $ 60 million, Malaysia US $ 28 million, Taiwan $ 16 million.  Means great export opportunities for exporters from Indonesia.

Shoes

Turkey imports about 600 million USD of footwear every year. China is the largest supplier of about 258 million USD, followed by Italy with about 53 million USD, and Vietnam with about 40-50 million USD. In Turkey itself, there are many well-known footwear manufacturers such as Mekap, Egeaysad, Koclar, Akdag, Adela, Eray, Nezih, Pames. Each year, Turkey exports about 250 million USD of footwear. Mainly in Russia, Central Asia, and Middle East markets. Just the footwear Turkey exports are different than the ones it is importing.

How to start an export business in Turkey

After you know the main export/import sectors and products in Turkey, you can do deeper research and analyze. Need to make sure what would be the perfect sector/product you should start dealing with. This depends on where you are based now, in what industries you have been active, what are your connections, your expertise, and your financial possibilities. Most importantly, you as an entrepreneur should make sure and focus on this with what you can provide the most added value and/or have the biggest advantages.

Maybe you have connections in the European fashion industry and perhaps you can bring the new brand to the Turkey market for its growing middle class? Or maybe you have connections in the air conditioner retailers industries in north Europe, why not to consider the possibility to start exporting Turkish-made air conditioners to Scandinavia? Or maybe you have connections in a berry farm in the Turkey countryside and you happen to know fruit importers from Russia, why not start and act as a commission agent and collect commission from each deal?

No matter in which industry and business model you finally end up, you shall know the process of exporting goods. Below are an infographic and a step-by-step explanation.

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Steps to start export business in Turkey


Step 1: Research & Select the export markets

The choice of the market must be made for each product of the company. It is necessary to study the product-market pairs. Besides finding information on the Internet, you need to do internal research. That means you need to talk to the experts and insiders in the markets you are going to export. They can provide you with useful insider information to help you make the right choice.

Try to interview importers, industry experts, and other related experts. You can gather information by talking, exchanging at trade shows, by phone, or visiting turkey and meeting possible partners.

Step 2: Create an export business plan

Developing an export plan is a prerequisite for the execution of the export strategy. It helps businesses seize opportunities and minimize risks. Accurate forecasting of market demand from which to build up procurement and storage plans will ensure a successful export.

In the business plan, you will have to make clear points: How will you organize your export activities? These activities include: setting up offices in export markets, one or more export agents in export markets, or a distribution channel? Do you join an export corporation or a strategic alliance? What products do you choose to export? Who will be your clients, how the supply chain works, which sale and marketing channels to use, etc?

Step 3: Select the products to export

The selection of products that suit the tastes and needs of target country consumers is crucial.

To make the best product selection, you can research the consumption and trends in the market. Essential products people need or products that importers need to find, actively monitor information on newspapers, join import-export groups in Linkedin, or information exchange forums, or contact the Turkish government representative offices to support your businesses to get information about expanding to foreign markets.

Step 4: Export marketing

You have products but have no customers yet. So this is the time to conduct marketing to promote your brand or products to buyers. There are many forms of marketing to choose an appropriate marketing channel to reach customers. Finding international customers for your products start from knowing who actually are your customers and what do they want and why,

Learn here how to do export marketing. 

Step 5: Apply for the export licenses

According to Turkish regulations, you must provide consular legalization for the shipment documents before transferring them to the importers. For goods that require export licenses, applying for a permit is compulsory in the export process business.

In case your company does not yet have an export license, you need to apply for a one-time application export license to be able to use it many times. It depends on each country’s policy to go to the local authority to get information.

Step 6: Sign the foreign trade contracts

The first step to getting started with the business transaction is to find the customers who are ready and willing to purchase from you. Then negotiate and sign a sales contract with a foreign partner. It is an agreement between the two parties and should include the necessary content, such as:

  • Commodity information
  • Price, payment terms
  • Delivery
  • Packing
  • Guarantee
  • Complaints, etc.

The detailed contract is negotiated and agreed upon by both sides to suit the actual needs. You can read more about the contract and other export documentation and procedures.

Step 7: Monitor the orders and collect the deposits (if any)

A growing business means getting more orders. You will have to handle lots of orders with a greater degree of difficulty and complexity. If orders are not filtered carefully, packaging and delivery will be difficult. Do not forget to collect deposits from the buyers. You can use order management software or can create a file to store buyers’ order data.

Step 8: Prepare the export shipment

Export goods by sea

After the customer agrees on the proforma invoice, you need to ensure the quantity and quality as in the contract. The next step in exporting goods after the booking has been done to get the container for packaging and do not forget the inspection before sealing.

Sea Ports In Turkey: Mersi Port, Istanbul Port, Izmir Port.

Noted when Exporting goods by air

Carrier is usually a forwarder or an aviation agent (GSA). This forwarder must be appointed by the airline and allowed to operate the cargo for the carrier. You will need to hire a shipping service company to do the necessary steps in the door-to-door delivery process.

Step 9: Buy the shipment insurance

You can contact the insurance company to buy insurance for your shipment. The limit of insurance will completely depend on the value of your goods. For ordinary goods, the insurance purchase price will be 2% of the total value of goods. Shipment exported under FOB or CNF terms no need to buy insurance.

Insurance is highly recommended if your delivery is precious. There are risks involved in the different steps. We recommend reading: main risks and how to manage them in the international business.

Step 10: Custom procedures

At the airport of the importing country:

 The agent carrier will contact and coordinate with the importer to do procedures related to airlines, airports, customs, tax bureau, to do the custom procedures.

After completing the procedure, the forwarder arranges the means to deliver goods to the importers warehouse.

By-sea customs procedures:

you will open customs declarations, register fees, pay fees, liquidate declarations, enter ship books and apply to customs declarations, putting it into the ship’s book, and apply to the customs declaration.

Turkey has made commitments to the EU and ensured the trade liberalization regime according to EU standards. The policy will be consistent with the EU system of regulations on quotas, product quality, healthy competition. 

Turkey applies Customs Valuation Agreement for goods imported from countries that are members of the WTO, the EU, Cooperation Council of Black Sea.

Various taxes and fees involved if importing into Turkey

Goods imported into Turkey are subject to some taxes and fees, including import duties (customs duties and ‘mass housing fund levies’), domestic taxes ( excise tax, VAT, ‘stamp duty’).

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How to start an import business from Turkey

Step 1: Determine the importable goods from Turkey

Sourcing is the first factor a business person must consider. Depending on your business strategy, you will need to choose suitable goods from Turkey to import.

You can find the websites specializing in goods trading, groups / social networking sites with many wholesale businesses, or surveying famous wholesale markets in Turkey where they sell what kind of goods you want to import.

Step 2: Find the export agents in Turkey

Make sure you are working with a professional export agent, it will save you time and money. Local agent or expert usually knows the local prices and know how and where to get the good with the lowest price, meanwhile ensuring the quality.

Step 3: Negotiate & Sign the contracts

Time to negotiate and agree the terms, all should end up in contracts; What are the quantities, prices, packing, payment terms, delivery terms, documentation, warranty. Support shipping or marketing after delivery?

Consider the above notes before signing the contracts.

Step 4: Check the shipping process

In this step, you can check the shipping cost, shipping time.

Importing from Turkey

For customs clerance: as per Turkish customs regulations, the transport companies and forwarders do not prefer to complete export/import clearance. Exporters/Importers companies always make their own customs clearance by themselves using their authorized customs brokers in Turkey.

Conclusion

Starting and having an import and export business is a dream for millions of people. If you know the processes, and you know how to discover the business opportunities and how to execute these, you will create sustainable and highly profitable, and growing business which will support your lifestyle.

To do this, you need to learn and practice a lot. You need knowledge from the people who has actually done this already, but meanwhile understand where you are standing now. There are many different lessons and content developed by us in this course, where you will learn how to operate a new and unique import and export business. Join the online course below to help your business become more developed.

We suggest to start from research, creating a local connections, visiting local interesting trade fairs before making plans of exporting to Saudi Arabia,.

If you want to learn how to start your own export-import business online or offline, then we have online courses and programs which will give you the best guide to start an international business from scratch. We have also tools and resources which help you to grow and expand your business and get more customers and raise profitability.

You are advised to take courses and use the resources ad tools listed below: