Project title: Technical assistance for the implementation of pre-arrival and pre-departure declarations at Turkish Customs Administration.
Submitter of the project:
Prime Ministry, Undersecretariat For Customs
Directorate General of Customs
Project beneficiary: Prime Ministry, Undersecretariat For Customs
Directorate General of Customs
Contact details:
Contact person: Hülya ERBAY
Position: Head of Department
Telephone: +90 (312) 3068291
Email: herbay@gumruk.gov.tr
Contact person: Burak Serkan YAŞAR
Position: Customs Expert
Telephone: +90 (312) 3068634
Email: serkan@gumruk.gov.tr
Project counterpart: Prime Ministry Undersecretariat for Customs is the beneficiary and the responsible governmental institution regarding the proposed project.
Project purpose: Analysing and learning from the existing pre-arrival and pre-departure declarations at Dutch Customs and making use of Dutch Customs’ experience in order to reduce the number of problems that could be encountered during legislative and technical studies at Turkish Customs and during the implementation period.
EU (accession) relevance:
The Council (EC) decision of 19 th March 2003 covering the principles, priorities, intermediate objectives and conditions contained in the
Accession partnership with the Republic of Turkey, included the following relevant short-term priorities under the Customs Union sector:
“- Strengthen the administrative and operational capacity of the customs administration.”
Under “Chapter 29-Customs Union” of Section B.3.1 (Chapters of the
acquis) of Turkey’s 2005 Progress Report (COM (2005) 561 final) dated
9 November 2005 (SEC (2005) 1426), it is stated that :
“…
Turkey’s computerised import, export and national transit entry-processing

system is not yet compatible with the EU systems such as the integrated tariff (TARIC) or new computerized transit system (NCTS). The Undersecretariat of Customs does not only need to undertake these modernisation activities of IT infrastructure, but also needs to attach particular importance to strengthening its administrative structures, aligning its business procedures and improving the training quality of customs officials.”
Under “Conclusion” part of the same chapter, it is also stated that:
“Overall, the level of alignment in the area of customs is high, in particular due to the alignment in the framework of the EC-Turkey Customs Union.
However, further alignment of Turkish Customs Code with that of the EC is still needed.” and ;
“The recent automation of customs offices and modernisation of customs controls should continue. Significant modernisation efforts are required to improve the functioning of the customs administration, in order to have sufficient capacity to implement and enforce the acquis communautaire .”
Under “Chapter 29-Customs Union” (Section 4.29) of Commission Staff
Working Document on Turkey’s 2006 Progress Report (COM (2006) 649 final) dated 8 November 2006 (SEC (2006) 1390), it is stated that :
“Further efforts are needed to strengthen administrative capacity, including the timely preparation for IT-interconnectivity and operating with the
Community IT systems.”
2006 Accession Partnership Document for Turkey (Council Decision of
23 January 2006 on the principles, priorities and conditions contained in the Accession Partnership with Turkey (2006/35/EC)) published in the Official Journal of the European Union dated 26.01.2006 no. L
22/34, included the following short-term priorities under the 3.1 –
Customs Union sector:
“strengthening the administrative and operational capacity of the customs administration and alignment of the internal procedures with the EU standards” and “preparations for the development of the necessary IT systems so as to allow for the exchange of electronic data with the EU and its Member States, beginning with transit and tariff areas”
In Electronic Customs Multi-Annual Strategic Plan (MASP Rev 7)
Working Document (TAXUD/477/2004 - Rev. 7 ECG update – EN) dated 27 September 2006, under 5.1 regarding the Regulation (EC) No
648/2005, it is stated that :
“Electronic declaration and automated systems for the implementation of risk management and for the electronic exchange of data between customs offices of import, entry, export and exit, are required to be in place three years after the date of entry into force.
Concerning the other necessary IT systems, the legal obligation set under
Regulation 648/2005 is that these systems must be in place three years after the implementing provisions come into force (i.e. in mid 2009); they

include those for:
- electronic lodging of pre-arrival and pre-departure declarations;
- exchange of data between customs offices;
- an electronic system for risk management , both for transmission of risk information and risk selection results, to be integrated into the processing of electronic declarations.”
According to MASP Rev 7 , the first stage of Automated Import System
(AIS), the Import Control System (ICS), will particularly include the exchange of electronic pre-arrival declarations and risk information.
Points (4) to (11) of Article 1 of the Draft Commission Regulation amending Regulation (EEC) No 2454/93 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code (TAXUD/1250/2005, REV 7 - CORR 1-
FINAL-EN, 23 October 2006) lay down the provisions for entry summary declaration. The draft Article 184a in Point (11) (Time Limits), the time limits by which the entry summary declaration shall be lodged at the customs office of entry are set. And according to Point (3) of Article (3) states that these provisions shall apply from 1 July 2009.
Summary of institutional setting in your country:
Directorate General of Customs (DGC) is a law enforcement unit responsible for administration and collection of customs duties, excise duties and VAT on imports. It is also responsible for ensuring that all goods and persons entering and exiting Turkey are in accordance with relevant laws and regulations. Our mission is to promote voluntary compliance with our laws and regulations through communication, high quality service and responsible enforcement. The Undersecretariat has 18 Regional Directorates and 138 Customs Directorates under Regional Directorates.
Computerised customs transactions first began in 1998 at Atatürk Airport
Customs Directorate, which was chosen as the pilot site for automation. On
January 4, 2000, the contract for deployment of the computerised system was signed. The modernisation studies have continued since then and as of
January 2007, 18 Regional Directorates and 109 Customs Directorates have been automated. Currently, more than 99% of all customs declarations are carried out in electronic environment.
The computerised system for customs transactions is called BILGE, which is the abbreviated form of Computerised Customs Activities in Turkish.
BILGE is an easy-to-use and modular customs application software that enables the control of goods from the time they enter the customs area until the time they are released.
Education of traders and customs personnel was an important part of the automation of Turkish Customs. During the pilot implementation and deployment of BILGE system, about 15.000 traders and 4.000 customs personnel have been trained to use the BILGE system.
BILGE software is composed of four modules, which are;





These four modules operate in an integrated manner, that is, it will not be possible to continue to the next stage if there exists a missing or inconsistent data at the previous stage. With the auto-control procedure of BILGE software, it is greatly ensured that the declarations are made with all the necessary data provided and in consistence with each other.
In order to prevent the loss of time during control of goods and in order to provide more effective customs control, the method of inspection of goods is selectively and automatically determined by BILGE software at the time the declaration is approved by the customs personnel. This selection is based on the criteria defined within the system through risk analysis.
The four methods of inspection are:
* Red (physical inspection)
* Yellow (inspection of documents)
* Blue (post-release control)
* Green (release of goods without control)
In Turkey’s computerised customs system, the traders can make their declarations through kiosks which are provided within the customs directorate buildings and from their offices through EDI (Electronic Data
Interchange) or internet. The number of customs directorates in which EDI
System is currently used is 94. As of January 2007, 80% of all customs declarations are submitted using EDI System.
Information from BILGE system is transferred to a data warehouse which serves as an anti-smuggling and valuation data bank. Real-time and more accurate foreign trade statistics can be produced through the data warehouse. Using data warehouse, performance analysis of customs directorates can be made and statistical bulletins can be prepared.
A software called TIR-Transit Tracking has been developed and integrated into BILGE, which enables the tracking of TIR and transit vehicles throughout the country. This system is based on the distribution of information collected as one vehicle crosses the border to other customs directorates.
About the concept of single window, the pilot implementation of the e-
Document Project was started in the Customs Directorate of Gemlik and is still continuing.
General Directorates and Departments that will be involved in the implementation of the project:
DG of Customs
DG of Customs Enforcement
DG of Customs Control
Department of Data Processing and Communication
Risk Management and Risk Analysis Units (to be established)
The principal role of the Risk Management Unit is planned to be the administration of the risk management system on behalf of The
Undersecretariat. The principal role of the Risk Analysis Unit is provide analytical services to their respective Directorates.

LEGISLATIVE FRAMEWORK
1. Introduction:
Legislation relevant to Organizational Structure of DGC:
Decree Law no:485 (and 541) regarding the Organization and Duties of
Undersecretariat for Customs (dated 02/07/1993)
Legislation related to the Main Duties and Responsibilities of DGC:
- Decree Law no:485 (and 541) regarding the Organization and Duties of
Undersecretariat for Customs (dated 02/07/1993)
- Customs Law no: 4458 (12/10/1999)
- Customs Regulation
2. Legislation for Organizational Structure
Decree Law no:485 (and 541) regarding the Organization and Duties of
Undersecretariat for Customs (dated 02/07/1993):
- Defines the main duties and responsibilities of the Directorate General of
Customs.
- DGC is one of the four main bodies of the Undersecretariat of Customs which is under the authority of a State Minister and affiliated with the Prime
Ministry.
3. Legislation for Main Duties and Responsibilities:
1. Decree Law No:485 (and 541) regarding the Organization and Duties of
Undersecretariat for Customs (dated 02/07/1993):
Main duties and responsibilities of DGC are stated in the 7th article: a) To execute customs operations related to importation, conducting import regime, exchange and other legislation provisions related to customs, b) To regulate and implement the process of customs tariff classification and determining value of commodity in accordance with international agreements to which Turkish Customs Administration is a party, c) To implement and control transit, transhipment, bonded warehouse, temporary admission and exemption procedures, d) To give permission to establish and operate warehouses and bonded warehouses and control them, e) To implement export regime provisions related to export and temporary export regimes and returned goods, f) to conduct customs operations concerning goods delivered by mail, g) to supervise and implement of customs transactions relevant to border and coastal trade and relations,

h) to conduct the procedure of goods salvaged from the sea,
i) to prepare the analysis methods, regulate the customs laboratory operation,
j) to conduct and supervise the customs transactions in free zone,
k) to conduct the procedure regarding customs brokers and aides,
l) to fulfill the duties given by the Undersecretariat of Customs.
2. Customs Law no: 4458 (12/10/1999):
- defines the customs procedures of goods.
- fully harmonized with EU Community Customs Code with the Customs
Union established in January 1st, 1996.
- defines that the Turkish customs territory covers the territory of the
Republic of Turkey, including territorial waters, inland waters, and airspace
(in other words, the sovereignty area) (Article 2).
- the entry and exits to Turkish Customs territory are performed through customs gates (Article 34).
- goods brought into the customs territory of Turkey shall, from the time of their entry, be subject to customs supervision. They may be subject to control by the customs authority in accordance with the provisions in force
(Article 34).
HUMAN RESOURCES
We have a personnel portfolio of: customs controllers, customs experts, customs officers, data preparation and control operators, technical personnel.
Number of personnel at HQ: 438
Number of personnel in the Regional Directorates: 4295
TRAINING
The Undersecretariat for Customs has a central Training Department in
Ankara.
Training programming and strategy is determined by Training Department, based on the proposals and opinions of central and regional units.
Trainings are given both in Ankara (Training Department) and at Regional
Directorates.
Trainings are categorized at two phases:

Description of the problem:
Pre-service training
In-service training
Pre-service training is only performed in Ankara.
In-service trainings are performed both in Ankara and Regional
Directorates.
Pre-service Training Subjects
Customs and Smuggling Legislation
Foreign Trade Legislation
Tariff, Origin, Value
State Organization
Constitutional Law
Penal Law
Ataturk Principles and History of Reforms
Public Officers Law
Turkey EU Relations
In-service Training Subjects
Customs and Smuggling Legislation
Foreign Trade Legislation
Tariff, Origin, Value
Computer Knowledge
Computerized Customs Operations
Risk Analysis
Anti smuggling methods (narcotics, arms and ammunition, nuclear and radioactive materials, cigarettes, fueloil, alcohol, cultural goods, CITES, illegal immigration, etc.)
Public Financial Management and Control
Training of Trainers
Foreign Language: English, French
In 2007 Programming:
Training Department (Ankara)
2307 personnel
Regional Directorates (18 Region)
2266 personnel
Approximately 4000 personnel are trained each year.
Approximately 50 training seminars are arranged each year.
The Customs Union with Turkey was completed between Turkey and the
EU in accordance with Decision No. 1/95 of the EC–Turkey Association
Council as of 01.01.1996.
As a consequence of the Customs Union, customs legislation has been modernised accordingly and the customs tariff (codes, description of goods, chapter, heading and sub-heading) has been harmonised with the Combined
Nomenclature of the EU.

The Customs Law No. 4458 (250 articles), along with customs regulations, notifications and circulars have been in force since February 2000. In May
2002, a new customs regulation consisting of 756 articles was issued, which came into force 01.07.2002.
In parallel to the recently changing economical trends, the foreign trade volume has significantly risen throughout the world. The economic trends have diversified not only the economical environment, but also the social life. Accordingly, each organization needed to review its own administrative structure. One of the organizations most affected by this change is the Customs. While the process towards the removal of the trade barriers undermined relative importance of the revenue functions of customs, it brought on the foreground the “ protective ” role of customs in providing the health and security of national economy, society and the environment. However, the main dilemma is the fact that while the customs administrations are expected to fulfill this protective role effectively, they also face in principle with the necessity of facilitating the goods and passengers movements in international trade. Consequently, the establishment of balance between security and trade facilitation has become a generally accepted concept.
In the context of the international trade environment Customs plays a critical role not only in meeting the goals of the governments but also in ensuring effective controls that secure revenue, compliance with national laws, ensuring security and protection of society. The efficiency and effectiveness of Customs procedures has a significant influence on the economic competitiveness of nations and in the growth of international trade and the development of the global marketplace.
he new trade environment requires traders to supply customs authorities with advance information on goods brought into, or out of, the customs territory of the European Community. This will provide for better risk analysis, but, at the same time, for quicker process and release upon arrival, resulting in a benefit for traders that should be equal to, if not exceed, any cost or disadvantage of providing information earlier than at present.
Turkey’s foreign trade volume has significantly increased, as well, in the last decade. In fact, trade volume boosted in the last year, reaching a total of more than 200 billion dollars, of which 125 billion dollars are imports.
Thus, Turkish Customs has to deal with increasing number of customs transactions each year.
The purpose of this project is to contribute to the facilitation of the legal trade while at the same time aiming for more effective and timely customs controls. The Project is based on the fact that increasing work load of customs administrations originating from the increasing trade volume can be dealt with by establishing an effective pre-arrival and pre-departure declaration system.
Alignment of Turkish Customs legislation with that of the EU is mentioned both in the Accession Partnership Document and in the recent Progress
Reports. Also, Turkey makes the necessary amendments in the Customs
Code and Implementing Provisions in parallel to the amendments in

Community Customs Code and its implementing provisions. Therefore, amendments in the Community customs legislation regarding entry summary declaration will be reflected in the customs legislation of Turkey as well.
For this purpose, a draft has been prepared which amends Customs Law
No.4458 and is about to be sent to the Parliament for ratification. Article 6 of the draft amends Article 35 of the Customs Law. No.4458 and states that the summary declarations shall be lodged electronically and before the arrival of the goods at Turkish Customs Territory. However, the time limits for the lodging of summary declarations and their format and the contents will be covered in the implementing provisions.
Electronic lodging of pre-arrival and pre-departure declarations covers both legislative and technical issues. Prior to the implementation of electronic pre-arrival declarations, the necessary legislative amendments need to be made and the IT structure designed to meet the requirements. Continuation of the modernisation activities of IT infrastructure of Turkish Customs is also mentioned in the Accession Partnership Document and in the recent
Progress Reports.
In Turkish Customs’ computerised system (BILGE) summary declarations are electronically lodged to the relevant customs offices, however there is no implementation regarding pre-arrival and/or pre-departure declarations.
The existing risk analysis system at Turkish Customs is based on the declaration of the importer (the declarant) after the goods arrive at any port of Turkey. More specifically, after the goods arrive at the Turkish Customs
Territory, a summary declaration is lodged by the transporter/carrier and the goods are held under temporary storage until a declaration has been made.
In the current situation, the risk analysis is made only after the economic operator lodges a declaration covering the goods. However, in case of prearrival or pre-departure notifications, Turkish Customs will be informed about the goods that will arrive at the Turkish Customs Territory well before their arrival. This will provide the Customs with adequate time and opportunity to carry out risk analysis on those goods.
Thus, Turkish Customs aims to initiate legislative and technical work to implement the electronic lodging of pre-arrival and/or pre-departure declarations in its computerised system. With the implementation of prearrival and/or pre-departure declarations it is aimed to collect the data from the transporter/carrier which will provide the necessary data for an effective and timely risk analysis.
It is also known that the Dutch Customs has been receiving the pre-arrival information from the carriers, although there does not exist any legislation on this subject. It is therefore important for Turkish Customs to know how the Dutch Customs manages to receive such information without any legislation in force.
It is also important to decide on which data elements are required regarding pre-arrival and/or pre-departure declarations, as these will serve as the basis for risk analysis tools. The Dutch Customs’ experience in collecting the required pre-arrival data will be useful in making the relevant decisions.
The IT and communication methods for lodging pre-arrival declarations at

Dutch Customs are also to be studied, as these will serve to decide on which methods are to be used and whether new technologies will be needed in
Turkish Customs’ IT system.
Project results
(maximum of 4 results):
1. Bilateral cooperation between
Turkish Customs and Dutch Customs on pre-arrival, declaration process. pre-departure
2.
Better understanding of prearrival, pre-departure declaration process by Customs personnel.
3.
Successful implementation process with minimum problems encountered.
Activities:
1.1 To establish a Project Group
1.2 To make study visits at Customs offices in Netherlands.
1.3 To study SAGITTA Entry System of Dutch Customs.
1.4 To examine the legislative regulations related to pre-arrival, pre-departure declarations in Turkey.
1.5 To examine system preparations and technical requirements of Computerized Customs Activities (BİLGE) System of
Turkish Customs.
2.1 To establish detailed course content.
2.2 To arrange “training of trainers” seminars for the customs officers in the following main subjects:

Pre-arrival declaration.

Pre-departure declaration.
2.3 To arrange training seminars and workshops for the customs officers.
The proposed training programme is attached.
3.1
To analyse the difficulties faced during design and implementation of the system by Dutch Customs.
3.2
To organize conferences and seminars in terms of awareness raising.
3.3 To arrange training seminars and workshops for the customs officers.
Related projects: Modernization of Customs Administration Project-II (TR 0403.01)
The project was offered and accepted in 2004 Financial Cooperation
Programme. The purposes of the project are:
To modify and improve the current Turkish Customs Integrated IT system (BILGE) in order to include the functionality and interfaces required for the accession of Turkey to the EU, mainly CCN/CSI,
NCTS and Integrated Tariff Management System (ITMS);
To establish effective Customs control mechanisms in order to reduce and accelerate formalities and procedures for legal trade while preventing illegal cross border activities;
To establish a regional Customs laboratory in Istanbul;
To create a centralised Customs archive facility, equipped with all necessary archiving equipment, machinery, computer hardware and software and other related instrumentation, and train the relevant staff members in archiving techniques, procedures and use of the IT applications implemented.

Miscellaneous:
It includes the following main activities:
1. Customs IT systems component
Installation and configuration of the CCN/CSI gateways
Analysis of the integration of the ITMS sub-systems into BILGE
Consultancy for the analysis to migrate BILGE to web-based technology
Modification of BILGE to include and meet NCTS requirements
2. Customs Enforcement component
Further development of risk based control mechanism
Further development of specialized enforcement units at regional level
Development of infrastructure at border posts
Supply of X-Ray Inspection Systems
Development of Vessel and Container Tracking Software
3. Customs Laboratories component
Furnishing and equipping of Istanbul laboratory
Development of laboratory procedures
4. Customs Archive component
Creation of a centralized automated customs archive facility
MATRA Project - Improving the customs enforcement mechanism at
Turkish Customs (PPA04TR/9/3)
The purpose of the project is to improve the control enforcement mechanism of Turkish Customs in order to achieve better targeting for inspection by cooperation between Dutch Customs and Turkish Customs on risk analysis practices.
The desirable project results are as follows
1.
Bilateral cooperation between Turkish Customs and Dutch Customs on risk analysis enhanced.
2.
Customs personnel better understood risk analysis, selectivity and targeting.
3.
Sustainability for the methodology of risk analysis achieved.
4.
Public and business organizations better understood the risk based customs controls and cooperation on pre-arrival information.
This MATRA project covers the preparation of Risk Management Strategy and Risk Management Model for Turkish Customs and utilisation of Risk
Analysis Tools.
The proposed project on pre-arrival and pre-departure declarations is related to the project on “Improving the customs enforcement mechanism at
Turkish Customs” as it is aimed to collect the necessary data which will enable more efficient utilisation of the risk analysis tools under the project
“Improving the customs enforcement mechanism at Turkish Customs” providing more effective and timely risk analysis.
The proposed project duration is 1 year.
The reason for requesting Dutch experience on the proposed project is that the Dutch Customs, according to the information on the Dutch Customs’ web site, uses a system of pre-arrival information which provides Customs at the earliest possible stage with data of the goods that are carried, well

before the goods arrive. By means of the system (Sagitta Entry system) the
Dutch Customs receives the manifest information in advance and electronically. According to the current information on the Dutch Customs’ web site, Sagitta Entry is operational for goods that are entered by sea and the system is expected to cover the goods carried by air, in the course of
2006. Therefore, the Dutch Customs Administration is experienced on the proposed project topic, which will hopefully be of great value for successful implementation of a similar system at Turkish Customs.
The Organizational Structure of Undersecretariat for Customs is attached to the form.

ANNEX 1
Dept. of Personnel
Dept. of Training
Dept. of
Administration and
Financial Affairs
Dept. of
Data Processing and
Communication
UNDERSECRETARY
Deputies of
Undersecretary
Dept. of Strategy
Development
Office of Legal
Advisors
Board of Investigation
Office of Advisors
Directorate General of Customs
Directorate General of
Customs Enforcement
Directorate General of
Customs Control
Office of Civil
Defence
Directorate General of
EU and External
Relations
Regional Directorates of Customs and
Customs Enforcement
CED
CED
CED
CD
CD
CD

DRAFT TRAINING PROPOSAL
NAME OF TRAINING
PROGRAM
STAGES
Training for Pre-arrival and Pre-departure declarations
Overall Training Program is proposed to cover 4 stages:
Introduction to Dutch Experts on the existing IT system of Turkey (BILGE) at Headquarters and visits to
Regional Directorates together with some of the ports in order to identify the needs of Turkish Customs
Visits to Dutch Customs together with some of the ports, in order to have information on the existing systems at
Dutch Customs
“Training of Trainers” by Dutch Experts (in Ankara) to the core team (approximately 15 persons) including :


Customs Experts
IT Experts

Customs Officers (from Regional Directorates)
Training Subjects will be determined upon needs analysis.
Training of Customs Officers at Headquarters and Regional Directorates by the abovementioned team.