WT/REG379/2/Rev.1  
 
6 April 2018 
(18-2117) Page: 1/11 
Committee on Regional Trade Agreements  Original: English  
 
FREE TRADE AGREEMENT  BETWEEN TURKEY AND MALAYSIA  
(GOODS)  
QUESTIONS AND REPLIE S 
Revision  
 The following communication, dated 6 April 2018, is being circulated at the request of the 
delegations of Turkey and  Malaysia . 
 
_______________  
 
 
Questions from the delegation of the European Union  
 
Trade Environment and Provisions on trade in goods  
Paragraph 1.3, and section 3.1.2 Liberal ization  of trade and tariff lines (tables 3.1 and 
3.2) 
 
1.1.  According to the statistics, trade between the Parties is relatively small  in terms of 
their overall trade. Furthermore, according to the figures showed in tables 3.1 and 3.2, 
the EU notes an unbalanced trade liberal ization  between the parties. At the end of the 
implementation period, more than 20% of Turkey's total import from Malaysia will 
remain dutiable while less than 6% of Malaysian's total import from Turkey will remain 
dutiable.  
 Given the low level of trade, what was the rationale for entering into these 
negotiations? Could also the Parties justify the different tariff l iberal ization  schedules?  
 
Response from the delegation of Turkey  
 
 Turkey does not consider that the Parties ' share in their total trade is small. As of 2017 the 
total volume of trade between both countries was 3.4 billion dollar, which amounts to around 1 % 
of Turkey 's total trade volume. Turkey would like to also note that the EU has begun to negotiate 
with Malaysia before Turkey, in September 2010. In that time, Turkey has proposed to Malaysia to 
begin FTA negotiations not only considering trade aspects, but also as a necessity of following the 
EU's common commercial policy as a consequence of the Customs Union between the Turkey and 
the EU.  
 
 The main reaso n behind the different liberaliz ation schedules of the Parties was Turkey 's 
sensitiveness in agricultural products and Malaysia 's sensitiveness in some industrial products. 
Turkey considers that agriculture is a strategic and sensitive sector for Turkey and Turkey 's 
general policy in FTA 's is being more protective in agricultural products comparin g to the industrial 
products. In terms of industrial products, while the Parties have agreed on eliminating of all 
customs duties on import, Malaysia was more protective in some sectors like chemicals, iron and 
steel and machinery. Even so, taking into acc ount that almost all tariff lines -except the tariff lines 
excluded by Malaysia - will be eliminated at the end of the eight years , Turkey believes that it was 
quite a balanced FTA.  
 
 
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  Response from the delegation of Malaysia  
 
 Malaysia do es not consider t hat the Parties ' share in their total trade is small. As of 2017 the 
total volume of trade between both countries was 3.4 billion dollars.  
 The main reaso n behind the different liberaliz ation schedules of the Parties was Turkey 's 
sensitiveness in agricultural products and Malaysia 's sensitiveness in some industrial products. 
Even so, taking into account that almost all tariff lines except the tariff lines excluded by Malaysia, 
will be eliminated at the end of the eight years, the Party believe s that it was quite a balanced 
FTA.  
 
 Malaysia 's tariff elimination schedule is more comprehensive than the Turkish schedule to 
facilitate and further promote import s from Turkey as the current trade balance is favourable to 
Malaysia. In the long term, it is e nvisaged that both parties will enjoy mutual benefits from the 
utilisation of this FTA.  
 
Chart 1.1 and Paragraph 3.6  
 
1.2.  According to chart 1.1, Turkey has had a widening global and bilateral trade deficit 
with Malaysia for much of the period 2000 -2016, while  Malaysia's global trade surplus 
has remained steady.  
 In paragraph 3.6 it is stated that during the first Joint Committee meeting on 5 -6 
October 2017 the Parties discussed also a possible work plan to improve the trade 
imbalance between them.  
 
 Could the Parties explain w hat the reasons for the trade imbalance are? Could the 
Parties give an overview of the envisaged measures to address the trade imbalance? Did 
they agree on a work plan?  
 
Joint r esponse from the Parties  
 
 Comparing to Turkey, Malaysia has c omparative advantage in producing and exporting some 
products , due to lower production costs. Moreover, as a consequence of its renewable energy 
policy, since 2016, Turkey imports some merchandises used in this sector intensely from Malaysia.  
 
 The Partie s discussed on the measures to address the trade imbalance during the first Joint 
Committee Meeting in Ankara, held on 5 -6 October 2017. During the Meeting, the Parties decided 
to explore ways to increase Turkish exports to Malaysia, including concrete wor k plans to improve 
the bilateral trade balance. While Turkey engage s in some internal discussions on the ways to 
eliminate the trade imbalance, the Parties have not come together to discuss the details of such a 
plan.  
 
1.3.  The report mentions that there are two side letters which contain requirements for 
the Parties to replace certain articles on the rules of origin and the Annex on the product 
specific rules of origin with the corresponding provisions in the Malaysia -Europe an 
Union Free Trade Agreement (MEUFTA), should the MEUFTA be implemented anytime in 
the future.  
 Paragraph 2.2: Could the Parties clarify in detail  in what way the provisions on 
RoO currently applying under this Agreement are not compliant with the EU RoO ? 
 
Response from the delegation of Turkey  
 
 The EU and Malaysia have no FTA and therefore there is no legal text to compare the rules 
of origin (RoO) under Turkey -Malaysia FTA with. Consequently it is not possible at the moment to 
clarify in what way the provisions on RoO currently applying under this Agreement are not 
compliant with the EU RoO. Should the MEUFTA (Malaysia -EU FTA) be implemented any time in 
the future, RoO under this FTA which will be non -compliant with all corresponding provisions of the 
MEUFTA would be replaced accordingly.  
 
 
 WT/REG379/2/Rev.1  
 
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  Response from the delegation of Malaysia  
 
 As the MEUFTA is still being negotiated, it is quite premature for Malaysia to determine at 
this stage whether it is in compliance with the EU ROO or not.  
 
Tariff rate quot as 
 
1.4.  Malaysia maintains MFN tariff quotas on a number of agricultural products, 
including cabbage.  
 Paragraph 3.12: Could Malaysia explain the need to maintain a TRQ on cabbage?  
 
Response from the delegation of Malaysia  
 
 The MFN tariff quotas on agricultural products, including cabbage were results of the 
negotiations under the Uruguay Round where non -tariffs were converted to tariffs, and such gave 
rights to Malaysia to maintain the TRQ.  
 
 Nevertheless, Malaysia is in consultation with the releva nt stakeholders to review the TRQ 
on cabbage.  
 
Export duties and charges, and quantitative restrictions  
 
1.5.  Paragraphs 3.20, 3.21: Could the Parties clarify whether they have agreed to 
maintain/cancel export duties? If yes, which ones?  
Joint r esponse from the Parties  
 
 In the FTA, Article 3.3 (Reduction or Elimination of Customs Duties) covers a paragraph on 
export taxes, which envisages that the Parties will not introduce new or increase existing customs 
duties and charges having equivalent ef fect on exports from the date of entry into force of this 
Agreement. Also, if a Party enters into any agreement with a non -Party where commitments are 
more favourable in terms of liberalization of the customs duties and charges having equivalent 
effect on exports than that accorded under this Agreement, it shall without delay apply the same 
favourable treatment to the other Party. This issue was not at the agenda of the first Joint 
Committee Meeting in October 2017.  
 
Customs -related procedures  
 
1.6.  Paragraphs 3.20, 3.21: Could the Parties clarify whether they are envisaging to  
upgrade chapter 5 on customs to take into account of TFA?  
Response from the delegation of Turkey  
 
 Customs Procedures and Cooperation chapter of the Turkey -Malaysia Free Trade Agreement 
(FTA) was prepared in line with contemporary disciplines, practices and principles of simplification 
and harmonization of customs procedures and trade facilitation measures. Also, text has been 
prepared in parallel with the World Customs Organization (WCO) standards.  
 
 Currently, there have been no talk s about updating provisions of Chapter 5 with WTO TFA. 
But in the future, it is possible to update the text with new international trade standards and WTO 
TFA provisions as long as we have to come a common understanding with our partners on the 
Malaysian si de. 
 
Response from the delegation of Malaysia  
 
 At the moment, Malaysia is not envisaging to upgrade Chapter 5 on customs procedures to 
the TFA level. This is taking into account that we are still in the process of implementing the TFA.  
 
 
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  Other  
Economic a nd Technical Cooperation  
 
1.7.  Chapter 9 establishes a framework of cooperation. Paragraph 4.24 of the factual 
presentation gives an overview of the activities that the Parties should carry out.  
 Paragraphs 4.24 -4.25: The EU would like to know whether the sub -Committee on 
Economic and Technical Cooperation has met and whether the parties have agreed on 
any work plan in in one or more of the areas of economic and technical cooperation.  
 
Response from the delegation of Tu rkey 
 
 The first meeting of the Joint Committee established under the Free Trade Agreement 
between the Republic of Turkey and Malaysia was held in Ankara on 5 -6 October 2017. The 
Sub-Committee on Economic and Technical Cooperation has not met yet and discu ssed any work 
plan on the areas of economic and technical cooperation.  
 
Response from the delegation of Malaysia  
 
 The sub -Committee on Economic and Technical Cooperation has not met and that both 
Parties are looking into the possibility of future meetings  to discuss on the work plan under the 
areas of economic and technical cooperation.  
 
Electronic commerce  
 
1.8.  According to the Factual Presentation, the Parties recognize the importance of 
electronic commerce and agreed to avoid imposing unnecessary restrictions on 
e-commerce.  
 Paragraph 4.30: Could the Parties describe the actual initiatives carried out so far 
for supporting the development of e -commerce under the Agreement?  
 
Response from the delegation of Turkey  
 
 In line with the decision to comme nce the negotiations on Trade in Services and Investment, 
the Parties held two video conferences and agreed on inclusion of the e -commerce as a separate 
chapter under the FTA. During the explanatory meetings, Parties exchanged information on their 
respecti ve sectors and legislations. The first round of the Turkey -Malaysia Negotiations Meeting on 
Services, Investment and E -Commerce was held on 13 -14 March 2018 in Kuala Lumpur.  
 
Response from the delegation of Malaysia  
 
 Discussions on a separate Chapter on e-commerce under the Malaysia -Turkey FTA (MTFTA) 
are ongoing.  
 
 Malaysia has been supportive of all and any form of engagement and discussions at the 
international front, including at the WTO, APEC and ASEAN and FTA, on digital economy, including 
e-commerc e, particularly if it facilitates cross -border e -commerce transactions and provides 
opportunity for countries like Malaysia to expand their trade to other markets via e -commerce.  
 
Question from the delegation of Peru  
 
1.9.  In regard of section 4.10.1, referred to Economic and Technical Cooperation, have 
the Parties identified or undertaken any cooperative activity under Chapter 9 (Economic 
and Technical Cooperation)? If so, Peru would appreciate if the Parties could provide 
further information on the activity or  activities (area, type of activity, outcomes, others)  
Response from the delegation of Turkey  
 
 The first meeting of the Joint Committee established under the Free Trade Agreement 
between the Republic of Turkey and Malaysia was held in Ankara on 5 -6 October 2017. The Parties 
have not identified or engaged any cooperation activities under the Chapter 9 (Economic and WT/REG379/2/Rev.1  
 
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  Technical Cooperation) up to this time, as the Sub-Committee on Economic and Technical 
Cooperation has not held its first meeting.  
 
Response from the delegation of Malaysia  
 
 The sub -Committee on Economic and Technical Cooperation has not met and that both 
Parties are looking into the possibility of f uture meetings to discuss on the work plan under the 
areas of economic and technical cooperation.  
 
Question s from the delegation of the Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu1 
 
Provisions on trade in goods  
Rules of origin  
 
1.10.   Paragrap h 3.15: According to the Parties, cumulation with Singapore is 
theoretically possible as the Turkey -Singapore FTA entered into force on 1 October 
2017.  
 Please provide us with the relevant timetable and practices for the implementation 
of accumulation rule s of origin between Turkey, Malaysia and Singapore.  
 
Response from the delegation of Turkey  
 
 Paragraph 5 of Article 4.3 of the FTA has been applicable as from 1 October 2017 without 
any additional procedure required.  
 
Safeguard mechanism  
Bilateral safeguards  
 
1.11.   Paragraph 3.31 : According to Paragraph 3.31, if as a result of the reduction or 
elimination of a customs duty pursuant to the Agreement, an originating product of a 
Party is being imported into the other Party's territory in such increased quan tities in 
absolute terms or relative to domestic production, and under such conditions as to cause 
or threaten to cause serious injury to the domestic industry producing like or directly 
competitive products, the other Party may, to the extent necessary to  prevent or remedy 
serious injury and facilitate adjustment, apply a safeguard measure during the transition 
period only.  
a. On 2 February 2018, Turkey launched an investigation regarding extension of 
the current safeguard measure on wallpaper and similar wal lcoverings.  
b. According to Turkish statistics, between January and September 2017, 62.4% 
of the imported wallpapers were from Turkey 's FTA or custom union partners. 
So, it is clear that the major impact on the Turkish domestic wallpaper industry 
from imports  was not caused by its non -FTA partners.  
c. Since the bilateral safeguard mechanism has been established in Turkey 's FTAs, 
it is advised that Turkey make the best use of such a bilateral mechanism and 
work with its FTA partners in easing the impacts from imp orts instead of 
implementing global safeguard measures. This will facilitate fair trade between 
Turkey and its non -FTA partners as well as help with the healthy development 
of Turkey 's industries.  
Response from the delegation of Turkey  
 
 The bilateral safe guard mechanism, which provides respective  Parties the opportunity to 
temporarily suspend the concessions granted under the FTA, exceptionally takes place in Turkey 's 
                                                
1 Questions were submitted to the Parties on 23 March 2018 (two weeks, 3 days before the 
meeting).  WT/REG379/2/Rev.1  
 
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  FTAs, while such a mechanism has not been envisaged in many other FTAs and under the Cust oms 
Union with the EU.  
 
 On the other hand, with a global safeguard mechanism, which is applied according to the 
WTO Safeguard Agreement and with out making any discrimination according to the  country of 
origin, it is aimed to eliminate any cause of a seri ous injury or threat of a serious injury on the 
domestic industry that produces a like or directly competitive product, as it is the case in wallpaper 
import of Turkey.  
 
Customs -related procedures  
 
1.12.   Paragraph 3.53: Both Turkey and Malaysia are members of th e TFA, and according 
to 3.53 and ch5, they also supported the promotion of efficient, economical 
administration of customs procedures and the expeditious clearance of goods.  
 Do the Parties have a specific goal and schedule on capacity building?  
 
Response  from the delegation of Turkey  
 
 Turkey has established a Board of Trade Facilitation, in accordance with Article 23.2 of 
Agreement on Trade Facilitation (ATF). The Board consists of government agencies and private 
sector umbrella organization, which are U nion of Chambers and Stock Exchange, Associations of 
Customs Brokers and so on. Goal of this Board is coordinating the implementation of ATF among 
public sector members with coordinating the work with private sector associations all the while 
improving cus toms and foreign trade procedures in Turkey beyond the scope of ATF.  
 
 In order to organize the aforementioned work to be done within the members, Board has 
accepted a "Trade Facilitation Strategy " for years between 2018 and 2022. The Strategy has been 
put together with contributions from every member of the Board and consists of five main pillars, 
including 82 actions, identified by intensive expert -level work.  
 
 Fifth pillar of the Strategy is "Capacity Building " among stakeholders in the area of 
responsi ble institutions regarding foreign trade and customs. This pillar includes two main actions : 
 
  Improvement of  infrastructure on customs area;  
  Improvement of institutional capacity on trade facilitation.  
 For the first action, the Board envisions improving  infrastructure of any customs area, 
whether it being border crossing points, ports or railways, where such improvement are needed for 
uninterrupted flow of goods. In order to achieve these goals, a consultation mechanism will be 
established between stakeh olders for improving physical infrastructure and improvement areas will 
be identified with neighbouring countries. It is expected that these actions will be completed in one 
year. 
 
 As for the second action, within the context of identified 82 actions, the re will be study visits 
to see best practices around other foreign trade and customs administrations in order to improve 
capacity of each administration, also to improve foreign trade and customs procedures. It is 
expected that this action will be complete d in one year.  
 
General Provisions of the Agreement  
Institutional framework  
 
1.13.   Paragraph 4.7: Chapter 11 on Institutional Provisions establishes the Joint 
Economic and Trade Council as well as the Joint Committee. The former consisting of 
senior officials o f the Parties is co -chaired by their Ministers and will meet at least once 
every two years (Article 11.1). It is tasked with reviewing progress made in 
implementing the Agreement and examining any major issues arising from the 
Agreement, including its econ omic and social impact and any other bilateral or 
multilateral issues of mutual interest (Article 11.2). The Council shall take decisions and 
make recommendations by consensus between the Parties.  WT/REG379/2/Rev.1  
 
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   What does the "economic and social impacts as well as any  other bilateral or 
multilateral issues of mutual interest" mean in para 4.7?  
 
Response from the delegation of Turkey  
 
 Turkey considers that the "economic and social impacts " could be any impact of an FTA on 
trade creation (in goods and services trade), GDP/welfare growth, technology transfer, fiscal policy 
(trade taxes), employment/job creation, production/productivity, investments etc. "Other bilateral 
or multilateral issues of mutual interest " could be any area which has directly or indirectly related 
with trade issues.  
 
Other  
 
1.14.   Paragraph 4.27: According to 4.27, the Parties agree to begin negotiations on 
trade in services and start exploratory talks on investment within one year after the 
entry into force of the Agreement.  
 How have the negotiations under para 4.27 been progressing?  
 
Response from the delegation of Turkey  
 
 The first round of the Turkey -Malaysia Negotiations Meeting on Services, Investment and 
E-Commerce was held on 13 -14 March  2018 in Kuala Lumpur. The Parties discussed various issues 
based on the main texts and annexes prepared by both sides. The next meeting will be held in 
Turkey in July 2018.  
 
Questions from the delegation of Thailand  
 
Provisions on trade in goods  
Rules of  origin  
 
1.15.   Paragraph 3.14: For products not meeting the conditions laid down in Annex 4 -2, 
non-originating materials may be used provided that the total value or net weight of the 
product does not exceed (a) 10% of the weight of the product for products fall ing under 
HS Chapter 2 and for HS Chapters 4 -24, other than processed fish products in 
Chapter  16; and 10% of the ex -works price of the product for all other products, except 
for products in HS Chapters 50 -63 (textiles and clothing) (Article 4.5). For text iles and 
clothing, the tolerance or de minimis  levels are 10% or less of the total weight of all the 
basic textile materials used as long as the products are made from two or more basic 
textile materials as listed in Note 6.2 of Annex 4 -1; or provided that  the textile materials 
used are classified in a heading other than that of the product and their value does not 
exceed 8% of the ex -works price of the product (Note 7 of Annex 4 -1). 2 Article 4.6 lists 
operations that are considered to be insufficient working or processing to confer the 
status of originating products, whether or not the requirements of Article 4.5 are met.  
 Why do the Parties apply different de minimis  levels to agricu ltural (HS 2 and 
4-24), process ed fish (HS  16), industrial (HS 25 -97, except 50 -63) and textiles and 
clothing (HS 50 -63) products?  
 
Response from the delegation of Turkey  
 
 Every sector has its own sensitiveness at the manufacture process for the purposes  of the 
implementation of rules origin. The concept of the rules of origin and in relation with that concept, 
the content of "de minimis " rule could be differentiated at every single FTA and even in the same 
FTA for different chapters.  
 
 Moreover, Turkey h as the obligation to apply the identical rules of origin with the EU 's ones. 
Even though the EU and Malaysia have no FTA, at the time of the FTA negotiations between 
                                                
2 In the latter case, the value of materials which are not classified in Chapters 50 -63 must be 
taken into account when calculating the value of the non -originating materials incorporated (e.g. 
buttons) (Note 7.3, Annex 4 -1). WT/REG379/2/Rev.1  
 
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  Turkey and Malaysia, the EU had also been negotiating with Malaysia for an FTA and its rel evant 
draft text for the RoO. Most provisions including "de minimis " rules under RoO text of Turkey -
Malaysia FTA are based on the provisions stipulated in that draft text which was prepared by the 
EU for the MEUFTA (Malaysia -EU FTA).  
 
Response from the del egation of Malaysia  
 
 The Parties apply different de minimis  levels to agricultural (HS 2 and 4 24), processed fish 
(HS 16), industrial (HS 25 -97, except 50 -63) and textiles and clothing (HS 50 -63) products as this 
is based on negotiated outcome taking int o account each Parties sensitivity.  
 
1.16.   Paragraph 3.15: Article 4.3, cumulation between the Parties is permitted, where, 
without prejudice to the provisions on originating products in Article 4.2, materials 
originating in a Party shall be considered as materi als originating in the other Party 
when incorporated into a product there, as long as they have exceeded the working or 
processing considered to be insufficient under Article 4.6. Notwithstanding this, 
materials under HS 25 -97 (industrial products) origina ting in the European Union and 
other ASEAN member states shall be considered as materials originating in the Parties 
when further processed into a product incorporated in the Parties. In order for these 
products to acquire originating status under the Agre ement, it shall not be necessary 
that the materials undergo sufficient processing or working, provided that: the working 
or processing goes beyond the conditions of Article 4.5 (insufficient working or 
processing); the materials originated in the European Union or other ASEAN members 
meet rules of origin identical to those applicable if the materials were exported directly 
to the Parties; and the Parties, the EU and other ASEAN members have arrangements 
which allow for adequate administrative cooperation pr ocedures ensuring full 
implementation of the cumulation mechanism and of Articles on certification and 
verification of origin of the products. The cumulation mechanism can only become 
effective once RTAs in accordance with GATT Article XXIV are in force be tween the 
Parties, the EU and other ASEAN member states. As the EU does not yet have an RTA 
with Malaysia, cumulation is not extended by the Agreement to materials or goods in 
Chapters 25 -97 originating in the EU. According to the Parties, cumulation with 
Singapore is theoretically possible as the Turkey -Singapore FTA entered into force on 
1 October 2017. However, cumulation cannot yet be implemented as Turkey, Malaysia 
and Singapore have not yet established the relevant arrangements which allow for 
adequat e administrative cooperation procedures to ensure full implementation of the 
cumulation mechanism as well as of Articles on certification and verification of the 
origin of the products concerned. Additional rules are provided for unit of qualification, 
accessories, spare parts and tools, sets, and neutral elements (Articles 4.7 -4.10 
respectively).  
a. What kind of document do the Parties use as evidence that verify the material 
originating in the ASEAN member states or European Union?  
Response from the delega tion of Turkey  
 
 The document(s) which are foreseen as a proof (evidence) of origin in the relevant 
Agreement between the Parties (Malaysia -EU, Turkey -an ASEAN country or Malaysia -an ASEAN 
country) will be used as evidence verifying the materials are originating in an ASEAN country or in 
the EU.  
 
Response from the delegation of Malaysia  
 
 For products originating from ASEAN or EU to be cumulated, all the conditions/requirements 
in paragraph 6 of Article 4.3 under this Agreement must be fulfilled, including by providing 
documents such as statements of origin or certificate of origin issued b y the Issuing Authority as 
evidence.  
 
b. Why does the Turkey -Malaysia Free Trade Agreement not permit the Parties to 
cumulate other materials other than under HS 25 -97 from EU and ASEAN?  
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  Response from the delegation of Turkey  
 
 The goods under Chapters 1 -24 are excluded from the cumulation possibility because of the 
sensitivity of both Parties ' private sectors in relation to those kind s of products.  
 
Response from the delegation of Malaysia  
 
 The Par ties do not permit the Malaysia -Turkey Free Trade Agreemen t to cumulate materials 
other than materials from HS 25 -97 from the EU and ASEAN as this is taking into account the 
sensitivities surrounding each item to the Parties.  
 
c. Please provide an example of "adequate administrative cooperation 
procedures" to ensure  full implementation of the cumulation mechanism 
between Turkey, Malaysia, EU and ASEAN member states.  
Response from the delegation of Turkey  
 
 ASEAN countries could submit a written undertaking to Turkey which commits to ensure for 
adequate administrative  cooperation for this purpose. Alternatively a Mutual Administrative 
Assistance Agreement which also includes provisions for this purpose may be concluded between 
that ASEAN country and Turkey.  
 
Response from the delegation of Malaysia  
 
 Adequate administr ative cooperation procedures mean the manner of cooperation is in 
accordance with any related provision on administrative cooperation that Malaysia is a Party to.  
 
Customs -related procedures  
 
1.17.   Paragraph 3.52: Under Article 5.6, the Parties shall, to the extent permitted by 
their domestic laws, regulations and administrative determinations, maintain 
procedures for advance rulings providing for importers to apply for advance rulings 
before importi ng goods. They shall also provide that an advance ruling, once the 
authorities have obtained the required information from the importer on the goods to be 
imported, be issued expeditiously to the applicant within the period specified in their 
domestic laws , regulations or administrative determinations. Their Parties may also 
modify or revoke an advance ruling where they determine that it was based on an error 
of fact or law, the information provided was false or inaccurate or if there was a change 
in the do mestic law, a material fact or the circumstances on which the ruling is based. If 
an importer claims that an advance ruling must be provided for imports of certain goods, 
the customs administration may evaluate whether the facts and circumstances of the 
import are consistent with those upon which an advance ruling was based.  
 In case of revoking an advance ruling due to incomplete, incorrect, false, or 
misleading information, how would the applicant be informed of the revocation?  
 
Response from the delegation of Turkey  
 
 Under Turkish Customs Law no. 4458 an advance ruling is revoked in following cases:  
 
1. Change in relevant legislation made by customs authority or an amendment of the 
international standards made by the WTO or WCO;  
2.  Upon re -assessment of the customs authority;  
3.  Submission of wrong or missing information by the holder.  
 In case of the first one, the advance ruling shall be invalid upon publication of the said 
change or amendment. With regard to the second case, application holde r is informed with a 
written notification about that the advance ruling has been revoked. In case of the third situation, 
the revocation time shall be when the customs authority decides that the advance ruling has been 
given upon the submission of wrong or  missing information by the holder.  WT/REG379/2/Rev.1  
 
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  Response from the delegation of Malaysia  
 
 The applicant will be notified in writing as this is provided under Malaysia 's Customs Act 
1967.  
 
Other regulations  
Sector -Specific Provisions of the Agreement  
 
1.18.   Paragraph 3.55:  The Parties also cooperate to encourage the promotion of Halal 
best practices through the sharing of information, experience and expertise in relation 
to Halal best practices, methodologies, reference materials and research findings, and 
cooperation in sp ecialized Halal related activities, trade events, conferences and 
seminars (Article 9.15).  
a. Does the promotion of Halal best practices include the cooperation on Halal 
certification and labelling?  
b. Could the Parties elaborate on their Halal certification a nd labelling system?  
Response from the delegation of Turkey  
 
 Chapter 9 of the Agreement, Article 9.15 (Cooperation in Halal Related Areas) envisages 
that the Parties shall cooperate to encourage promotion of Halal best practices and to this end, 
they will share and exchange information, experience and expertise in r elation to Halal best 
practices, methodologies, reference materials and research findings and cooperate in specialized 
Halal related activities, trade events, conferences and seminars.  
 
 Until now, the Parties have not discussed on this topic under the Co mmittees established 
under the FTA. However, both countries are Members of the Organisation of Islamic Cooperation 
(OIC) and its affiliated institution, the Standards and Metrology Institute for Islamic Countries 
(SMIIC). SMIIC is an intergovernmental regi onal standardization organization aims at realizing 
common standards, achieving uniformity in metrology, laboratory testing and establishing 
conformity assessment schemes for the purpose of expediting exchange of materials, 
manufactured goods and products in the Member States. Both countries are collaborating and 
taking joint action under SMIIC to this end.  
 
 On the other hand, Turkey has officially adopted OIC/SMIIC halal standards as its national 
standards. However, halal certification is not an obligati on in Turkey and carried out on a voluntary 
basis. Turkish Standards Institute (TSE), the national standards institution of Turkey, has started 
its halal certification activities in 4 July 2011 and issues halal certificates in line with OIC/SMIIC 
standards . Apart from TSE, there are other certification bodies running their activities in halal 
market in Turkey.  
 
 Additionally, the establishment of accreditation mechanism enabling a trustworthy 
certification system that is based on intergovernmental accredita tion is a key to eliminate technical 
barriers for halal products in global trade. In this manner, Turkey established the Halal 
Accreditation Council (HAK) very recently as an indication of the value that Turkey attaches to the 
halal accreditation system un der SMIIC. HAK is affiliated to the Ministry of Economy and it is a 
legal entity having administrative and financial autonomy to accredit halal conformity assessment 
institutions. HAK will accredit the halal conformity assessment bodies from all over the w orld based 
on OIC/SMIIC 3:2011 standard adopted by SMIIC.   
 
Response from the delegation of Malaysia  
 
 JAKIM recogniz ed two  halal Certification Bodies in Turkey, namely Kas U luslararasi 
Sertifikasyon Göz. Tek. Kont. Hizm. Ltd. Şti. (Kascertinternational) I n Izmir and Association For 
The Inspection and Certification Of Food And Supplies (GIMDES) In Istanbul. All products bearing 
halal logo from these two bodies can automatically enter the Malaysian market and vice versa.  
 
 The regulation for labeling depend s on both parties involved, for instance in Malaysia, it is 
under the purview of Food Safety & Quality Division, Ministry of Health. The applicant need s to 
apply for the approval from MOH first prior to the importation to Malaysia.  WT/REG379/2/Rev.1  
 
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  Intellectual Property R ights  
 
1.19.   Paragraph 4.22: While there are no provisions on intellectual property rights 
per se, Article  9.12 refers to cooperation in intellectual property rights .3 The Parties 
agree to cooperate according to their own capabilities and subject to the laws, 
regulations and policies on matters relating to the practice, promotion, dissemination, 
management, protection and effective application of intellectual property rights. They 
also agree to cooperate on preventing the abuse of such rights, fight against 
count erfeiting and piracy and to establish and strengthen national organizations for the 
control and protection of these rights.  
 Please provide information on how the Parties plan to implement the cooperation 
regarding intellectual property rights.  
 
Joint r esponse from the Parties  
 
 As the Sub -Committee on Economic and Technical Cooperation has not held a meeting until 
now, this issue has not been discussed by the Parties.  
 
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3 Intellectual property rights refers to copyright and related rights, trademarks, geographical 
indications, industrial designs, patents, layout designs of integrated circuits, and rights in plant 
varieties as defined and described in the WTO TRIPS Agreement.