The sale of goods waiting at customs is not always the result of a smuggling conviction. The process may also begin because customs procedures were not completed, because the goods were not collected, or because of the disposal conditions in a special law. For the owner of the goods, the first question is on which provision the disposal is based and what stage the sale has reached.
Short answer: Before the sale, an application to place certain goods under a customs regime or to re-export them may be possible. After the sale, the sale proceeds, statutory deductions, interest and, if any, a separate claim for damages are assessed under the provision that applies. The payment option in Article 179 of Law No. 4458 does not apply to all smuggled goods; nor does an objection or a lawsuit stop the sale automatically. [1, 2, 3, 4]
What does disposal mean, and for what reasons is it carried out?
Disposal (tasfiye) is the realization of goods through the procedures in customs legislation. Article 177 of Law No. 4458 regulates the situations subject to disposal, and Article 178 the methods. Sale by tender, sale for re-export, retail sale, allocation to public bodies, destruction and special methods do not produce the same consequences. The type of the goods and the reason for disposal affect which method can be used. [1]
The lapse of a period without a customs-approved procedure being completed, the cases of deemed abandonment in the law, and failure to collect goods whose return has been ordered by a court are different grounds for disposal. A finding of “smuggled goods” is not required in every case. On the other hand, the disposal of goods within a smuggling investigation is assessed together with the special provisions of Law No. 5607. [1, 2]
The existence of a disposal decision is also separate from the completion of the sale. The file should be checked for the finding and assessment document, the valuation, the sale decision, the announcement, the tender result, the payment of the price and the delivery records. Instead of merely asking the administration “where are my goods?”, finding out in writing what stage has been reached determines the option that can be used.
Can goods be sold before the criminal case ends?
Article 16 of Law No. 5607 provides a special disposal arrangement for goods that may be confiscated because they are the object of an offense. For goods within the scope other than smuggled fuel, it provides that, after the necessary findings are made within six months of the seizure, a disposal decision is given by the judge in the investigation or by the court in the prosecution. Where there is damage, a substantial loss of value or serious burden in keeping the goods, this period is one month. If no decision is given in time, there is a provision for immediate disposal. [2]
These periods are not general objection periods granted to the owner. Nor do they mean “no sale can possibly take place for six months.” If a sample can be taken, a sample; if not, the distinguishing features of the goods should be recorded before disposal. If the identity or quantity of the product may later be disputed, these records are important for the defense and for the calculation of the proceeds.
The special 30-day and 90-day situations for vehicles under Article 10, the destruction of certain products under Article 11/5 and the regime for fuel under Article 16/A are examined separately. It cannot be assumed that the ordinary tender route will always be followed for tobacco products, electronic cigarettes, medicines or medical devices. The 26.05.2025 amendment to the regulation on seized goods should also be taken into account for sampling, destruction and custody procedures. [2, 5]
Can the goods be recovered before the sale?
Article 179 of Law No. 4458 provides the possibility of applying for the goods within its scope to be placed under a customs regime or re-exported. For goods to be sold for re-export because of an import prohibition or restriction, the permitted option is likewise aimed at re-export. An application does not mean that the goods will be put into free circulation in Türkiye without any conditions. [1]
| Stage of application | Payment criterion within Article 179 |
|---|---|
| First use, before the tender announcement or the retail-sale decision | 1 percent of the CIF value of the goods in foreign currency |
| Second use of the same arrangement | 3 percent of the CIF value |
| After the announcement or the retail-sale decision, before the sale takes place | 10 percent of the CIF value |
In addition to these amounts, the law also requires payment of any penalties and of warehousing, handling and other expenses. The tax, permit and document conditions of the chosen regime must be met separately. CIF is a value approach in which freight and insurance are included in the price of the goods; it is not the same as the tender price or the retail sale price in Türkiye. [1]
The date on which the application was made, whether the payments were made and whether the application was accepted must be documented. Saying “I saw the announcement and submitted a petition” does not produce a result that stops the sale or cures missing conditions. If the sale has taken place, this application route under Article 179 can no longer be used in the same way.
Can every smuggled item be recovered by paying 10 percent?
No. Article 179/2 contains express exceptions. This option does not apply to goods within sub-paragraphs (c), (d), (ı), (l) and (m) of Article 177/1 and Article 177/2-a. In particular, the position of goods subject to disposal under Law No. 5607 must not be confused with goods awaiting disposal because ordinary customs procedures were not completed. The 10 percent payment is not an amnesty for smuggling. [1]
What amount can be claimed after the sale?
It cannot be said that the whole of the sale proceeds will in every case be paid to the former owner. Article 180 of Law No. 4458 provides for different calculations according to the reason for disposal. In the groups listed in Article 180/1, service receivables and expenses, customs duties, sale expenses and monetary penalties are set aside in order; any remaining amount is placed in custody in the name of the owner of the goods. In the other groups there are different provisions on recording the remaining proceeds as revenue. [1]
For vehicles under Article 10/2 of the Anti-Smuggling Law, the amount after deduction of the necessary custody and sale expenses applies; for goods and vehicles within Article 16, the whole of the sale proceeds is taken into the custody account. However, the amount taken into custody and the net amount finally to be paid to the rights holder are not the same question. The return decision, customs duties and other applicable deductions are assessed separately. [1, 2]
Article 64 of the Disposal Regulation (Tasfiye Yönetmeliği) details the distribution and payment procedures. It is useful for the owner to ask for a statement that separately shows the gross sale proceeds, the expense items, tax and penalty deductions, the custody record and the calculation of interest. It should not be explained as if a single fixed deduction rate had been applied to all files. The statutory basis of the deduction and its conformity with the concrete calculation should be checked. [6]
If there are attachment, pledge or similar entries on a vehicle, their effect on the proceeds is also examined. Article 180/4 contains a special provision on annotations and on payment to the relevant rights holders at the time of disposal. For this reason, the position of other rights holders cannot be ignored when determining the amount to be paid to the vehicle owner. [1]
How is interest calculated if a return decision is given?
Article 16/2 of Law No. 5607 provides that, where it is decided to return to its owner goods or a vehicle that has been disposed of by sale, the price is paid within the framework of Article 180 of the Customs Law with statutory interest from the date of seizure to the date of return. The calculation should not be narrowed by taking only the date of the tender or of the application as the starting point of interest. If the amount in custody does not cover the payment, the difference, and, if the goods have been destroyed, the relevant price, is to be met from the budget. [2]
This provision does not mean that the original purchase invoice or the whole of the current replacement price will be paid in every case. The sale proceeds, statutory deductions, the price criterion of a different disposal method and any separate claim for damage are kept apart. In the interest calculation too, the periodic statutory rates, the starting date and the actual payment date should be shown; a single rate should not be applied to changing periods. [2, 6, 8]
If there is separate damage resulting from physical harm, delay or an irregular procedure, compensation may be considered in the appropriate judicial route. Damage within CMK Article 141/1-j and damage arising from an independent act of the administration may not be subject to the same procedure. Amounts and interest already received should be shown in the calculation so as to prevent the same damage from being claimed a second time. [3, 4]
How is the one-year period assessed in a claim for the proceeds?
Article 180/6 of Law No. 4458 accepts applications for the return of the amount in custody made within one year of the finality of the court decision ordering return to the owner, and, in other cases, from the time the amount was taken into custody. Article 64/9 of the Disposal Regulation also contains this distinction. It is therefore not correct to start the period from the date of sale in every case. [1, 6]
The decision of the 10th Chamber of the Council of State (Danıştay 10. Daire) dated 01.02.2021, E. 2015/4343, K. 2021/228 makes the problem of learning of finality concrete. In that case, the finality arising from the administration’s withdrawal of its appeal and the later finality annotation on the decision carry different dates. The Council of State, taking into account the earliest date on which the rights holder could have learned the outcome, reversed the first-instance court’s decision dismissing the action. [7]
This decision does not mean that the one-year period has been abolished or that all applications will always be accepted. The outcome of the decision is the reversal of the dismissal of the action and the sending of the file back to the court for a new decision; a specific amount of compensation was not awarded directly. In practice, the finality certificate, the notification and the records of learning should be obtained without delay, and the application should be made at the earliest possible stage.
How are an application to stop the sale and an application for the proceeds prepared?
For an administrative act, the competent administration and judicial route, and for a judicial disposal decision, the criminal procedure route, should be determined. The conditions for a stay of execution under Article 27 of the İYUK or for suspension of implementation under Article 269 of the CMK must be made concrete. Merely requesting return is not treated as obtaining a decision to that effect. [3, 4]
The following records may be attached to the application:
• Documents showing the ownership, quantity, features and location of the goods.
• The basis for disposal, the finding and assessment document, the sale announcement and the tender result.
• The return decision, the finality record, and the notification and learning documents.
• A statement of the sale proceeds, the custody account, deductions and interest.
• The authority of representation, the rights holder’s payment details and earlier applications.
If the sale has taken place, the request must show clearly which amount is being claimed and for what reason. Instead of general statements that might be read as admitting all the debts, the deductions in dispute and the claims reserved should be specified. The application periods that will arise upon the administration’s reply, or its failure to reply, must also be followed separately.
Conclusion
In a disposal file, the goods themselves and the rights over the money arising from the sale are protected at different stages. Before the sale, the scope of Article 179 and the application conditions are decisive; after the sale, the calculation under Article 180, the interest under Article 16 of Law No. 5607 and the one-year application period are decisive. Following the announcement, the return decision and the custody record on the same timeline prevents the available legal routes from being lost.
Related articles: Seizure, Retention and Confiscation at Customs: Differences and Routes of Application; When Does a Customs Violation Constitute the Offense of Smuggling? Defense under Law No. 5607; Return of Seized Vehicles and Goods: Rights of the Owner, the Buyer and Third Parties; Retention or Seizure of Goods at the Airport: Record, Objection and Return.
Frequently Asked Questions
Does disposal always mean sale?
No. Besides sale, there are allocation, destruction and other methods in the law. The method is determined by the nature of the goods and the legal basis.
Can goods be disposed of while the criminal case is continuing?
Yes, if the conditions in the law are met. For this reason, waiting for the outcome of the case does not by itself remove the risk of sale or destruction.
Can goods not be sold before the six-month period expires?
This is not a minimum guarantee of retention. The decision period provided by the law and the special situations are assessed together; a shorter process applies to some goods.
Can all goods be taken by paying 10 percent of the CIF value?
No. Article 179 has a scope and exceptions. The payment is assessed together with a proper application before the sale takes place and the other financial obligations.
Is an application still possible after the sale announcement has been published?
For suitable goods within Article 179, an application with the 10 percent criterion may be possible before the sale takes place. The other relevant conditions must also be completed.
Is the whole of the sale proceeds given to the former owner?
Not in every case. The reason for disposal, statutory expenses, taxes, penalties and, if any, other rights holders affect the net amount.
After an acquittal, does interest start only from the date of sale?
In the return calculation under Article 16/2 of Law No. 5607, the starting point is the date of seizure. The relevant decision, the deductions and the payment date must be examined together.
When does the one-year period for claiming the proceeds begin?
Where there is a return decision, finality; in other custody cases, the date the amount was taken into custody is the basis. A dispute over notification and learning may be assessed separately.
If the goods have been destroyed, can no payment be made?
Where it is decided to return to its owner goods within Law No. 5607, there is a special provision on the price. Not every destruction is subject to the same outcome.
Does an objection or lawsuit automatically stop the tender?
In general, it does not. Depending on the procedure that applies, a stay must be requested separately, and it should be followed up that the decision has reached the administration concerned.
Sources
- Customs Law No. 4458 (4458 sayılı Gümrük Kanunu), especially Arts. 177–180 and 242.
- Anti-Smuggling Law No. 5607 (5607 sayılı Kaçakçılıkla Mücadele Kanunu), Arts. 10–11, 16 and 16/A. Amendment of Art. 16: Law No. 6455 Art. 58.
- Code of Criminal Procedure No. 5271 (5271 sayılı Ceza Muhakemesi Kanunu), Arts. 141–142 and 269.
- Administrative Procedure Law No. 2577 (2577 sayılı İdari Yargılama Usulü Kanunu), especially Arts. 7, 10–13 and 27.
- Implementing Regulation on Goods Seized and Vehicles Retained under Law No. 5607 (5607 Sayılı Kanuna Göre Elkonulan Eşya ve Alıkonulan Taşıtlara İlişkin Uygulama Yönetmeliği); amendment published in Official Gazette No. 32911 of 26.05.2025.
- Disposal Regulation (Tasfiye Yönetmeliği), Official Gazette 25.06.2013, 28688; especially Art. 64 and the amendment of 31.12.2019.
- Council of State 10th Chamber (Danıştay 10. Daire), E. 2015/4343, K. 2021/228, 01.02.2021, full decision text.
- Law No. 3095 on Statutory Interest and Default Interest (3095 sayılı Kanuni Faiz ve Temerrüt Faizine İlişkin Kanun), statutory interest provisions.