High-rate price hikes before the change in customs exemptions

The abolition of the 30-euro customs exemption for individual imports, which will take effect on February 6, has led to significant price fluctuations in the market even before its implementation. While price hikes exceeding one hundred percent are noticeable, particularly in products imported from China such as glasses, headphones, small electronic goods, phone accessories, and kitchenware, consumers state that some products are being sold for two to three times more than in the past.

According to expert assessments, the reason behind these price increases is not directly the new tax regulation, but the high-profit attitudes of sellers who want to take advantage of the decrease in market competition. This is because firms that engage in wholesale imports state that they have already been paying legal taxes on all products they bring from China to date, and there has been no sudden change in costs.

This situation becomes clear when looking at calculations including taxes. For example, a pair of sunglasses that can be purchased for 160 TL in China has a maximum cost of 240 TL in Turkey once all taxes are added. However, similar products are finding buyers in stores or e-commerce sites in the 2,500-3,000 TL range. The picture is similar for electronic products; while the cost of wireless headphones remains at 500-550 TL including taxes, these products are sold in the market at prices higher than 2,000 TL. It is pointed out that the gap does not align with the "tax increase" announcements. All these developments indicate that with the restriction of individual imports, domestic sellers are acting more freely in setting prices.

Economic circles state that the elimination of the direct import option has caused prices in the domestic market to rise uncontrollably, and therefore strict price inspections are of vital importance. Furthermore, there are claims that some businesses have turned to large stocks before the new decision was taken and have accelerated sales at hiked prices. In this way, making advance price hikes under the pretext of a tax that has not yet come into effect has caused discomfort among consumers and fueled debates about unfair profits.

Turkey prefers China heavily in its foreign trade. Among the most imported products, electronic equipment, machinery parts, motor vehicle parts, iron-steel, chemical products, plastics, and optical-medical devices stand out.

According to the latest data, while Turkey's exports to China reached approximately 3.2 billion dollars, imports from China were recorded at 49.6 billion dollars. Thus, while the total trade volume between the two countries reached 52.8 billion dollars, a significant deficit of 46.5 billion dollars was formed against Turkey.

The items that Turkish firms export to China are listed primarily as mineral ores, natural stones, inorganic chemicals, metal ores, cotton, and machinery and mechanical parts.

QUALITY AND SAFETY ISSUES ON THE AGENDA

The quality debate continues for many products imported from China. Experts point out that some factories adjust quality according to orders and can save on raw material quality under the pressure of low costs. For this reason, especially unsupervised or uncertified products can fall behind European and Turkish standards.

In addition, it has been documented by ministry tests that chemical substances harmful to health such as phthalates, heavy metals, PAHs, and Chromium VI have been found in toys, textile products, and low-quality electronics of Chinese origin. While many risky products are being recalled from the market, it has been recommended that some be destroyed without ever being used.

STOCK ACCUMULATION AND CALL FOR INSPECTION

Sector sources point out that some importers turned to opportunism before February 6, filling their warehouses and adding serious price hikes before the new customs tax application even began. The rapidly rising prices during this period were met with intense reaction from the public. Economists and consumer associations are calling for the strengthening of inspection mechanisms to ensure fair competition in the market.

In summary, following the announcement of the new regulation that will make individual imports more difficult, the excessive price increases experienced, especially in various Chinese-made product groups, have caused consumers to react. In this environment, while the decrease in competition and the lack of effective inspection directly affect prices, the public's expectation is for the formation of a fair and transparent market structure.

News Source: 12punto