Understanding Free Trade Agreements and How They Reduce Duties
A free trade agreement (FTA) between two countries or blocs can mean the difference between paying full duty and paying little or none — but only if you can prove your goods qualify.
What an FTA actually does
An FTA reduces or eliminates customs duty between the signing countries for qualifying goods. Turkey, for example, has FTAs and a customs union arrangement covering dozens of countries, each with its own qualifying rules.
Rules of origin: the qualifying condition
Preferential rates only apply if the goods meet the agreement's rules of origin — meaning they were sufficiently produced or transformed within the originating country, not simply passed through or lightly repackaged there.
The paperwork that unlocks the discount
To claim a preferential rate, you typically need a movement certificate — such as a EUR.1 certificate for EU trade agreements or an A.TR certificate for goods moving within the Turkey-EU Customs Union. Without the correct certificate, customs will apply the standard (non-preferential) duty rate even if the goods would otherwise qualify.
A worked example
A Turkish manufacturer exporting furniture to an FTA partner country at a $20,000 customs value, where the standard duty rate is 12% but the FTA preferential rate is 0%, saves the buyer $2,400 in duty — provided a valid movement certificate accompanies the shipment.
Frequently asked questions
Does every product automatically qualify under an FTA?
No — qualification depends on where and how much of the product's value was added locally, per the specific agreement's rules of origin, which vary by product category.
What happens if I ship without the movement certificate?
Customs will apply the standard duty rate, and it's often difficult or impossible to reclaim the difference retroactively — always confirm and prepare the certificate before shipment.
Related tools and reading
Conclusion
Free trade agreements only pay off if you do the paperwork — confirm your product qualifies under the relevant rules of origin, and secure the correct movement certificate before the goods ship.
See what your duty rate would be either way: Use the Customs Duty Calculator →
Last updated: July 25, 2026