The EU–Türkiye customs union is the arrangement under Association Council Decision 1/95, in force since 1996, that abolishes customs duties and quantitative restrictions on industrial goods traded between the EU and Türkiye (Turkey). A machined metal part that is made in Türkiye, or was imported there and put into free circulation, therefore enters the EU at 0% customs duty when an A.TR movement certificate proves its status; coal and steel products, agricultural goods, import VAT, customs formalities and CBAM sit outside that rule.
What is the EU–Türkiye customs union?
The customs union is the final phase of the 1963 Ankara Association Agreement. Decision No 1/95 of the EC–Türkiye Association Council, adopted on 22 December 1995 and published in OJ L 35 of 13 February 1996, lays down its rules. The Decision has two halves.
Between the parties, "import or export customs duties and charges having equivalent effect shall be wholly abolished" (Article 4), and quantitative restrictions on imports and exports are prohibited (Articles 5 and 6). Towards the rest of the world, Türkiye applies the EU Common Customs Tariff (Article 13), aligns its commercial policy with the EU's (Article 12) and takes over EU technical legislation (Articles 8 to 10).
In 2025 the EU and Türkiye traded goods worth €217.6 billion, a record. EU imports from Türkiye were €103.3 billion and EU exports to Türkiye €114.3 billion. Türkiye was the EU's fifth-largest trading partner, with 4.2% of EU goods trade (European Commission, DG Trade).
Which goods does the customs union cover?
Article 2 of Decision 1/95 applies the free-movement rules to all products other than agricultural products. Machined metal parts are industrial goods, so they are inside. Article 3 extends this to goods that originate in the EU or Türkiye, including goods made from third-country materials that are in free circulation, and to third-country goods that are in free circulation. A third-country product counts as in free circulation once the import formalities are complied with, the duties have been levied and none has been refunded.
Table 1. Coverage of the EU–Türkiye customs union by product group
| Product group | Status | Basis |
|---|---|---|
| Industrial goods, including machined metal parts | Inside: duties and quantitative restrictions abolished | Decision 1/95, Articles 2 to 6 |
| Processed agricultural products | Inside, with special conditions | Decision 1/95; Commission |
| Other agricultural products | Outside; separate preferential regime | Decision 1/98 |
| Coal and steel (ECSC) products | Outside; separate preferential agreement | Agreement of 25 July 1996, OJ L 227 |
| Services | Outside; the union covers goods | Turkish Ministry for EU Affairs |
Source: Decision No 1/95; European Commission, DG TAXUD, "Türkiye: customs unions and preferential arrangements"; EEAS Delegation to Türkiye; Turkish Ministry for EU Affairs. Status as of 2026-10-30.
The practical consequence for a part drawn, machined and inspected in Bursa is simple: no customs duty at the EU border and no quantitative restriction. A part machined from imported bar stock is covered where that bar stock was itself cleared into free circulation in Türkiye, with duty paid and not refunded.
Does the separate steel agreement affect machined steel parts?
Coal and steel products were never part of the customs union. They trade under a separate agreement between Türkiye and the former European Coal and Steel Community, dated 25 July 1996 and published in OJ L 227 of 7 September 1996. The Commission describes these goods as subject "only to preferential agreements based on their originating status", so duty-free treatment depends on proof of origin, not on free circulation.
Annex I of that agreement lists products by CN code. It names coal, iron ore, pig iron, ferro-alloys, semi-finished steel, flat and long rolled products from CN chapter 72, and a few finished articles such as sheet piling (CN 7301 10 00) and railway track material (CN 7302). Machined components are not on the list. A shaft, housing or flange made from steel is an industrial good under Decision 1/95.
The split matters when you buy more than finished parts. If you import bar, billet or plate from Türkiye, the steel agreement and its origin rules apply. If you import the machined part, Decision 1/95 and the A.TR apply. See HS codes for machined parts for how to classify the part itself.
What does the customs union not remove?
The union removes customs duties and quota-type restrictions. Four things remain.
- Customs formalities: Article 3 of Decision 1/2006 keeps the customs codes of the EU and Türkiye applicable to trade between the two. Goods are still declared for export and import.
- Import VAT: the customs union does not abolish VAT. German customs states that all goods imported into the EU are generally subject to VAT.
- CBAM: the Carbon Border Adjustment Mechanism is a separate EU regulation. It applies in its definitive regime from 1 January 2026 to imports of selected goods, including iron and steel and aluminium, defined by CN code. Small imports of up to 50 tonnes net mass per importer and year are exempt. We found no customs union carve-out for Türkiye. Whether a given part is in scope is covered in CBAM for steel and aluminium parts from Türkiye.
- Everything that is not customs: tolerances, material certificates, inspection reports and warranty terms are matters of the drawing and the contract. The customs union has no say in them.
What is the A.TR movement certificate?
The A.TR is the document that proves a good is in free circulation, which is what entitles it to the customs union treatment. Decision No 1/2006 of the Customs Cooperation Committee (2006/646/EC, OJ L 265, 26.9.2006) sets the rules. It is not a certificate of origin.
Table 2. A.TR rules in Decision 1/2006
| Article | Rule |
|---|---|
| 5 | Proof of free-circulation status is documentary evidence issued at the exporter's request by the customs authorities of Türkiye or a Member State |
| 6(1) | That evidence is the A.TR movement certificate |
| 6(2) | Use is limited to goods transported directly between the two parts of the customs union; transit through third countries is allowed only in limited cases under customs surveillance |
| 7(1) | The customs authorities of the exporting State endorse the certificate when the goods are exported |
| 8(1) | The certificate is presented to the importing State's customs authorities within four months of its issue |
Source: Decision No 1/2006 of the EC-Turkey Customs Cooperation Committee, Articles 5 to 8.
Since 8 July 2024, EU Member States accept A.TR certificates issued electronically by the Turkish authorities, bearing a QR code and no wet-ink signature, according to the Commission. The Commission's page describes a Customs Cooperation Committee decision with retroactive effect for such certificates as still in preparation.
Decision 1/2006 is also under review. A Commission proposal of 17 September 2026, COM(2026) 477, seeks a Council position on a new decision that would replace it, including how A.TR certificates are issued. We found no adopted replacement as of 2026-10-30, so check the current text before you rely on the article numbers above. The full procedure is in the A.TR guide.
What should a buyer check before the first shipment?
Check these points with the supplier and your forwarder before the first order ships:
- Who applies for the A.TR, and is it endorsed by Turkish customs at export?
- Does the shipment travel directly to the EU, so that Article 6(2) is met, and will it reach the importing customs office within four months of the A.TR's issue?
- Was the supplier's raw material cleared into free circulation in Türkiye, with duty paid and not refunded?
- Is the part's CN code on the CBAM list, and is your annual import volume above 50 tonnes?
- Who files the import declaration and pays import VAT? The Incoterms rule in the order decides this.
Parts from our audited network in Bursa, made by CNC milling, turning, sheet metal work, welding and casting with machining, move under these rules. The wider sourcing picture is in Sourcing Machined Parts from Turkey.
Frequently asked questions
- Are machined parts from Türkiye duty-free in the EU?
- Yes, if they are industrial goods in free circulation and the shipment carries an A.TR movement certificate. Decision 1/95 abolishes customs duties and charges having equivalent effect on such goods (Article 4). Import VAT and customs formalities still apply.
- Is steel covered by the EU–Türkiye customs union?
- Coal and steel products as listed in the 1996 ECSC agreement are outside the customs union. They trade under a separate preferential agreement that depends on origin. Machined components made of steel are industrial goods and fall under Decision 1/95.
- Do I need an A.TR certificate for goods from Türkiye?
- The A.TR is the documentary evidence of free-circulation status under Articles 5 and 6 of Decision 1/2006. It must be endorsed by the exporting customs authority and presented to the importing customs authority within four months of issue.
- Does the customs union remove import VAT?
- No. Decision 1/95 abolishes customs duties and charges of equivalent effect. German customs states that all goods imported into the EU are generally subject to VAT, and that applies to goods from Türkiye as well.
- Does CBAM apply to goods from Türkiye despite the customs union?
- CBAM is a separate EU regulation. Its definitive regime applies from 1 January 2026 to imports of selected iron, steel and aluminium goods, defined by CN code. Whether a machined part is in scope depends on its code, not on the customs union.
Sources
- Decision No 1/95 of the EC-Turkey Association Council, 22 December 1995 (text copy, WTI)
- Decision No 1/95, OJ L 35, 13.2.1996 (EUR-Lex)
- Decision No 1/2006 of the EC-Turkey Customs Cooperation Committee, 2006/646/EC, OJ L 265, 26.9.2006 (text copy)
- Agreement between the ECSC and Türkiye on ECSC products, OJ L 227, 7.9.1996, Annex I (text copy)
- European Commission, DG TAXUD: Türkiye, customs unions and preferential arrangements
- European Commission, DG Trade: EU trade relations with Türkiye (2025 figures)
- EEAS Delegation to Türkiye: Customs Union
- Turkish Ministry for EU Affairs: Customs Union
- Zoll (German customs): import process and import VAT
- European Commission: Carbon Border Adjustment Mechanism
- European Commission, Access2Markets: start of the CBAM definitive period
- Council of the EU, document ST 13406/2026: proposal COM(2026) 477 on a new decision replacing Decision 1/2006
Questions on a drawing? sales@ertas.engineering