Trade Agreement Between Türkiye and the Maldives: A New Framework for Commercial Cooperation

Introduction

The Preferential Trade Agreement signed between the Republic of Türkiye and the Republic of the Maldives on November 4, 2024, in Istanbul was published in the Official Gazette No. 33112 dated December 19, 2025, establishing a new legal framework for trade relations between the two countries. The agreement aims to promote the development of trade in goods, reduce mutual trade barriers, and apply preferential customs duties on certain products. However, the text is not a comprehensive free trade agreement that provides for free trade in all products; rather, it is a limited-scope preferential trade arrangement based on the attached lists of concessions and rules of origin.

The primary secondary regulations governing the implementation of the agreement in Türkiye were published in the Official Gazette No. 33326 dated July 31, 2026. Pursuant to Decision No. 11563 on Amendments to the Import Regime Decision, the customs duty rates and additional financial obligations applicable to the import of certain fishery and aquatic products originating in the Maldives have been revised in accordance with the tariff concessions granted by Türkiye under the Agreement. Decision No. 11564 and the related Communiqué, published on the same date, established tariff quotas for certain prepared or canned tuna, skipjack, and bonito products; the legal and administrative framework was created to enable duty-reduced or duty-free imports within the specified quotas.

The structure of the Agreement consists of two main layers. The main text regulates the scope, tariff concessions, national treatment, quantitative restrictions, technical barriers, sanitary and phytosanitary measures, customs value, trade defense instruments, transparency, customs cooperation, and institutional mechanisms. The “Protocol on the Definition of the Concept of Originating Products and Methods of Administrative Cooperation,” on the other hand, specifies which products are eligible for preferential tariffs, how origin status is acquired, and how this status is proven using the EUR.1 movement certificate. Consequently, the economic impact of the agreement depends not only on the concession rates but also on the correct tariff classification of the product, the production process, the origin of the inputs used, and the documentation requirements.

A Limited Scope Preferential Trade Regime

Only the products listed in Annex I and Annex II fall within the scope of the Agreement. Therefore, not every product originating in Türkiye or the Maldives is automatically eligible for preferential tariff treatment. To qualify for preferential treatment, the product must first be included in the list of concessions and, second, be deemed to originate in one of the contracting parties in accordance with the Protocol on Rules of Origin. The mere shipment of a product from Türkiye to the Maldives or from the Maldives to Türkiye is not sufficient; the country of shipment and the country of origin are legally distinct concepts.

The parties will reduce or eliminate customs duties on products originating from the other party and listed in the concession lists at the rates specified in the annexes. The agreement also limits increases in existing customs duties and the imposition of new customs duties on products covered by the agreement. For products subject to tariff quotas, the preferential rate will apply only to quantities within the quota; imports exceeding the quota may be subject to the general regime. However, if the general—i.e., MFN—customs duty rate falls below the preferential rate specified in the Agreement, the lower rate will apply. This provision prevents the preferential regime from becoming less favorable to importers than the general regime.

While the term “customs duty” in the agreement covers financial burdens related to imports or exports, domestic taxes consistent with the national treatment principle, anti-dumping and countervailing duties, safeguard measures, and fees and charges limited to the cost of the service provided are excluded from this scope. Consequently, the elimination of the normal customs duty does not eliminate the value-added tax levied on imports or trade policy measures that may be applied when the conditions are met.

List of Concessions

Of the 154 tariff lines on Türkiye’s concession list, 142 consist of fish, crustaceans, mollusks, and other aquatic products listed in Chapter 03 of the Harmonized System. Consequently, approximately 92 percent of the concession list relates directly to the aquatic products sector.

The tariff concessions granted by Türkiye to the Maldives can be grouped under three main sectoral categories:

1. Primary fisheries and aquatic products: Live, fresh, chilled, and frozen fish, crustaceans, mollusks, and other aquatic organisms.
2. Aquatic products processing industry: Fillets, fish meat, dried, salted, and smoked products, as well as canned tuna.
3. Fisheries byproducts and feed inputs: Fish meals, coarse meals, and pellets, whether suitable for human consumption or not.

The structure of the list indicates that the concessions granted by Türkiye to the Maldives are primarily directed toward sectors in which the Maldives holds a comparative advantage. However, liberalization is not at the same level across all products.

While tariffs have been completely eliminated on some raw or minimally processed fish products, significant reductions have been applied to fillets and frozen fish. For more sensitive products such as shellfish, squid, octopus, and sea cucumbers, however, final tariff rates have been kept relatively high. The maintenance of high tariffs and quantity quotas on canned tuna also reflects Türkiye’s approach to protecting its domestic processing industry.

The concessions granted by the Maldives to Türkiye encompass a much more diverse sectoral structure than the concessions Türkiye grants to Maldives-origin products, which are primarily focused on fisheries and aquatic products. The Maldives has eliminated customs duties on a total of 404 tariff lines of Turkish origin, covering food, consumer goods, construction materials, machinery, electrical equipment, and capital goods within the same list.

The structure of the list is based on three main areas of demand:

1. Tourism and hospitality sector: Food, beverages, cosmetics, furniture, textiles, kitchen, and refrigeration equipment.
2. Construction and infrastructure investments: Plastic, wood, iron-steel, and aluminum construction materials.
3. Technical needs of the island’s economy: Water treatment, seawater desalination, generators, pumps, air conditioning, cold chain, and marine vessels.

In this regard, the agreement encourages Türkiye to export not only traditional consumer goods but also high-value-added machinery, equipment, construction materials, and infrastructure solutions.

The Regulatory Aspect of Trade and Customs Cooperation

The parties undertake to grant national treatment to each other’s products within the framework of GATT 1994 and, in general, to refrain from applying quantitative restrictions on imports and exports. It is stipulated that import-related fees and charges shall be limited to the approximate cost of the service provided and shall not be transformed into instruments that indirectly protect domestic production or have the character of a tax. With regard to sanitary and phytosanitary measures and technical regulations, WTO rules serve as the basis, and it has been agreed that these measures shall be applied in a manner that does not constitute arbitrary discrimination or a disguised restriction on trade. The inclusion of specific provisions for cooperation in the areas of halal standards, certification, and accreditation is of particular practical importance, especially in the trade of food, cosmetics, and similar products.

Beyond tariff reductions, the Agreement provides for institutional cooperation in the areas of customs and trade facilitation. The Parties will collaborate on issues such as tariff classification, customs value, determination of origin, import, export, and transit procedures, computer systems, exchange of experts, and supply chain security. The publication of regulations, fees, and administrative practices through official channels, the establishment of contact points to answer questions from interested parties, and the determination of customs value in accordance with the WTO Agreement on Customs Valuation all support the goal of creating a predictable and transparent trade environment.

Acquisition of Origin Status

Under the Protocol on Rules of Origin, a product may acquire originating status if it is wholly obtained in one of the contracting parties or if non-originating inputs have undergone sufficient working or processing. Minerals extracted from the ground or the seabed, plants grown in that country, animals born and raised there, products derived from them, hunting and fishing products, aquaculture products, marine products extracted from outside territorial waters by vessels of a Party that meet certain conditions, recyclable products obtained from used goods, and production waste are considered to be wholly obtained products. With regard to marine products, the vessel’s registration, flag, and ownership ties are also important.

For products that have not been fully obtained, whether sufficient labor or processing has taken place is determined according to the product-specific list rules set forth in Annex II of the Protocol. These rules may include various criteria, such as a change in tariff classification, a specific manufacturing process, a maximum percentage of the value of non-originating inputs, or the requirement that production begin with specific inputs. When an intermediate product that has acquired originating status is used in the manufacture of another product, the non-originating inputs contained in the intermediate product are not re-evaluated in the subsequent stage; the intermediate product is considered to be originating in its entirety.

The Protocol also provides for a limited tolerance rule to ensure production flexibility. With the exception of processed fishery products in Chapter 16, non-originating inputs that are otherwise prohibited may be used in products under Chapters 2 and 4 through 24 of the Harmonized System up to 15 percent of the net weight of the final product. For other products, the general tolerance is limited to 15 percent of the product’s ex-factory price. However, this tolerance may not be used to exceed the maximum percentage of non-originating inputs specified in the product-specific rules, and special provisions apply to textile products in Chapters 50 through 63.

Insufficient Procedures and Double Cumulation

Not every production activity confers origin. Operations aimed at protecting goods during transport and storage, repackaging, splitting or consolidating shipments, washing, cleaning, simple painting and polishing, simple cutting or slicing, sorting and grading, and the simple placement of products into bottles, boxes, or sacks, adding labels and logos, simple mixing, dilution, simple assembly, and the slaughter of animals are considered “insufficient processing or operations.” Even if the product-based rule appears to be formally met, if the activities performed consist solely of these operations, the product cannot acquire originating status.

In contrast, the Protocol provides for bilateral cumulation of origin between Türkiye and the Maldives. When inputs originating from one party are used in production in the other party, they may be considered as originating inputs in the exporting party. For this, the operation performed in the exporting party must go beyond mere insufficient operations. If a product originating in the other party is re-exported without undergoing any processing, it retains its own origin status but does not acquire the origin of the exporting party. Cumulation enables producers in both countries to use each other’s inputs more easily and facilitates the development of mutual supply relationships.

The basic unit for determining origin is the product classified according to the Harmonized System. Packaging classified with the product, as well as accessories and spare parts that are part of the standard equipment and included in the price, are assessed together with the main product under certain conditions. If the total value of non-originating components in a set does not exceed 15 percent of the set’s ex-works price, the entire set may be considered originating. Conversely, the origin of auxiliary elements such as energy, fuel, machinery, tools, and components not incorporated into the final product need not be determined separately.

Nationality, Immutability, and Transit Through Third Countries

As a general rule, the labor or processes that confer origin status must be carried out in Türkiye or the Maldives. When a product with origin status is sent to a third country and returned, in order to retain its origin status, it must be proven that the returned product is identical to the exported product and that it has not undergone any processing other than that necessary to preserve it in good condition in the third country. A product that undergoes production or substantial processing in a third country generally loses the preferential origin status it had acquired.

However, the Protocol adopts the principle of identity rather than a strict requirement for uninterrupted transport. Products may transit through third countries, be stored under customs supervision, or have their shipment split in a third country. It is permissible to affix marks, labels, or seals to the goods and to perform limited processing to comply with the importing country’s domestic regulations. The fundamental requirement is that the products remain the same as those sent by the exporter, are not subjected to any processing that alters their essential characteristics, and remain under customs supervision in the third country. The importing country’s customs authority may request transport documents, transit country records, storage documents, or other evidence identifying the goods.

Products sent to exhibitions held in third countries may also benefit from preferential treatment under certain conditions. The products must be sent by the exporter to the country hosting the exhibition, sold to a person in that country, shipped during or immediately after the exhibition, not used for purposes other than display, and covered by a valid EUR.1 certificate. This ensures that sales made through international trade fairs do not fall outside the preferential regime.

TEV - Prohibition on Reimbursement and EUR.1 Movement Certificate

One of the notable provisions of the Origin Protocol is that customs duties on non-originating inputs used in the production of products for which a preferential certificate of origin is issued shall not be refunded or exempted. This prohibition is intended to prevent exporters from simultaneously benefiting from both a tax refund on third-country inputs and a preferential tariff on the import of the final product. This situation requires the payment of a compensatory duty on Agreement-covered products that are to be exported to the Maldives after being manufactured from inputs imported under the Inward Processing Regime. Upon request, the exporter must submit documents proving that the relevant duties have been paid and that no refund or exemption has been applied.

The primary means of proving preferential origin is the EUR.1 movement certificate. The certificate is issued by the customs authority of the exporting country upon a written application by the exporter or an authorized representative acting under the exporter’s responsibility. The form must be completed in English; the description of the goods must be written without leaving any blank spaces, and unused fields must be blacked out to prevent subsequent additions. The exporter must be prepared to submit to the customs authority production, cost, supply, and shipment documents proving the origin of the products. The customs authority verifies the compliance of the application with the procedures, the connection between the goods listed on the document and the exported products, and whether the origin criteria have been met.

The Protocol also permits the issuance of electronic EUR.1 certificates. The electronic document must conform to the format specified in Annex III, bear a unique serial number and security features, and the customs authority of the exporting country must establish a secure system that enables online verification of the document’s authenticity. This approach establishes a clear legal framework for the digitization of origin verification processes.

Post-Processing, Validity, and Document Verification

If an EUR.1 certificate is not issued at the time of export due to an error, unintentional omission, or special circumstances; if it is issued but not accepted for technical reasons; or if the final destination is not determined at the time of shipment, it may be issued retroactively. The customs authority may issue an EUR.1 certificate within two years from the date of export, after verifying its consistency with the export records, and the phrase “ISSUED RETROSPECTIVELY” must be entered in box 7 of the certificate. In the event the certificate is lost, stolen, or destroyed, a duplicate may be issued based on the same export records.

The EUR.1 certificate is valid for twelve months from the date of issuance and must be presented to the customs authority by the importer within this period. Late presentations due to exceptional circumstances or cases where it is proven that the goods were presented to customs before the expiration of the period may be accepted. Products entering a free zone must not be substituted with other goods and must not undergo any processing other than storage. When large machinery, vehicles, iron or steel structures, and prefabricated structures are imported in parts, a single EUR.1 certificate may be submitted with the first part, in accordance with the conditions set by the customs authority.  

Key Control Areas for Companies in Practice

The first step for a company wishing to benefit from preferential tax advantages should be to verify whether the product is included on the preferential list. If the product does not fall within the scope of the agreement, having obtained origin status does not, by itself, confer a tax advantage. Therefore, before making a commercial decision, the accuracy of the product description and the HS code must be verified, and it must be determined whether the relevant tariff line is included in Annex I or Annex II and, if so, whether there is a tariff quota or special application conditions. Incorrect classification can lead to both the erroneous application of the concession and the risk of subsequent taxes and penalties.

The second area of review involves matching the product-based rule of origin with the production process. Conditions such as a change in tariff heading, a specific manufacturing process, or a maximum percentage of non-originating inputs must be verified against the production formula and cost records. While evaluating facilitative provisions such as the use of intermediate products that have acquired origin status, bilateral cumulation, and the 15% tolerance, it must not be forgotten that activities deemed insufficient in terms of labor or processing will not confer origin status. In particular, claims of preferential origin status should be further scrutinized in operations involving only packaging, labeling, simple mixing, or simple assembly.

Third, the calculation of origin must be based on documentation. A traceable link must be established between production records, input invoices, supplier documents, inventory movements, cost accounts, and data supporting the factory-gate price. The issuance of an EUR.1 movement certificate alone is not conclusive proof of origin status; the exporter is required to retain the production and supply chain records on which the certificate is based for at least three years and present them during subsequent audits. Therefore, origin management should be treated not as a one-time documentation process at the time of export, but as an ongoing compliance activity spanning the entire production process.

The fourth area of control is the logistics flow. While transit, storage, or splitting of shipments through third countries is possible, the product must maintain its condition of non-alteration and remain under customs supervision. Transport documents, warehouse or terminal records, customs documents from transit countries, and other evidence identifying the goods must be filed from the very beginning. Similarly, in import transactions involving free zones, exhibitions, or imports in parts, the Protocol’s specific conditions must be taken into account; the link between the goods covered by the EUR.1 certificate and the products actually imported must be established in a manner that leaves no room for doubt.

Ultimately, the success of the agreement depends not only on the commercial value of the concession lists but also on businesses’ capacity to comply with rules of origin. Ensuring the traceability of production and cost records, obtaining supplier documents in a timely manner, clearly establishing the link between the shipment and the EUR.1 certificate, and maintaining a well-organized documentation system ready for subsequent audits are the fundamental conditions for preserving preferential tariff benefits. In this regard, the Türkiye–Maldives Agreement not only offers companies new market and cost opportunities but also transforms origin and customs compliance into a strategic management area.