Overview of Türkiye GSP Case Model
Türkiye’s Generalized System of Preferences (GSP) grants duty-free or reduced-tariff access to developing countries like the Philippines for a wide range of industrial and selected agricultural goods. For textile exporters, the scheme presents a valuable opportunity to improve price competitiveness in Türkiye’s growing market.
Traditional synthetic fabric exports (HS 5407.69) face high AD duties (21.13%–42.44%) in Türkiye, significantly limiting price competitiveness despite GSP eligibility.
By shifting to a blended fabric (HS 5516.22) using modal fiber, exporters can avoid AD duties altogether while maintaining GSP eligibility under Türkiye’s rules.
Exporters must ensure proper documentation (Form A), verify yarn composition, and meet the origin criteria under Türkiye’s GSP and customs regulations.
The new classification enables a total duty reduction of up to 42.44%, allows premium pricing, and strengthens export competitiveness in the Turkish textile market.
Overcoming Anti-Dumping Duty on Synthetic Fabrics
Background & Problem
Synthetic filament woven fabrics
(HS 5407.69)
6.4% MFN Duty (under GSP)
+
Additional 21.13% ~ 42.44% of
anti-dumping duty
Total effective duty
= 27.53% ~ 48.84%
Textile HS Code Classification Principle in Mixed Materials
Not subject to anti–dumping duties in Türkiye
Still eligible for GSP with a lower base tariff rate
(due to Modal) is offset by:
Avoidance of the 21.13% ~ 42.44% AD duty
Higher perceived quality, enabling value-added positioning in the Turkish textile market
| Category | Exporting Product | HS Code | Import tariff rate | PSR |
|---|---|---|---|---|
| AS IS | FABRICS (PET) |
5407.69 |
MFN rate + AD Duty - MFN rate: 6.4% - AD Duty: 21.1% – 42.44% → 27.53% ~ 48.84% |
Specific Processing |
|
<Raw material> ①Poly(96%) ②Span(4%) |
||||
| TO BE | FABRICS (PET) |
5516.22 |
MFN rate: 6.4% *Not subject to anti-dumping duties in Türkiye → 6.4 % |
Specific Processing |
|
<Raw material> ①Poly(49%) ②Span(51%) |
Trade Remedy Evasion via HS Reclassification
When a garment is made of mixed textile materials, the classification is generally based on the component that predominates by weight.
This is in accordance with the General Interpretative Rule 3 (b) and the Explanatory Notes to Chapter 62 of the Harmonized System.
* Rule of Predominance
If no single material gives the garment its essential character (e.g., design, use, appearance), then the product is classified based on the material that accounts for the highest percentage by weight amo
This principle is important when designing textile products for export. For instance, if the intention is to avoid classification under a restricted HS code (like those subject to anti-dumping duties), adjusting the fabric composition to shift the predominance can lead to a more favorable classification
HS Code Classification Example
A woven shirt is made of: 55% cotton + 45% polyester
Since cotton predominates by weight, the shirt is classified under HS code for cotton garments (e.g., 6205.20 for men’s cotton shirts)
FTA and Rules of Origin Compliance
Ensure origin documentation to benefit from GSP preferences (6.4% base duty)
Maintain proper origin tracking and yarn composition verification to comply with Turkish customs regulations
Outcome & Impact
Total duty reduction of 21.13% - 42.44% by shifting composition.
Quality upgrade leading to premium pricing
Improved export profitability and competitiveness