Foreks - The Ministry of Trade has transitioned to the EU-Integrated NCTS Phase 5 application used in national and common transit operations in customs systems. According to the statement made by the Ministry, the transition to the NCTS Phase 5 application will take place on November 17, 2024, in customs.

The statement provided the following information: "As the Republic of Turkey, we are a Party to the Common Transit Agreement dated 20.05.1987, which includes other Contracting Parties such as the European Union, Member States of the European Free Trade Association (EFTA), the United Kingdom, North Macedonia, Serbia, and Ukraine. The New Computerized Transit System (NCTS) is utilized within the framework of the provisions of the said Agreement. Under the provisions of the said Agreement, it is mandatory for countries to transition to the current version of the NCTS system within a certain timetable, and the final transition date for all contracting countries is set as 01.12.2024. In this context, we have transitioned to the NCTS Phase 5 application in our customs on November 17, 2024.

As of November 17, 2024, the NCTS PHASE 5, used in national and common transit operations, has been implemented in our country's customs. The updated version of the NCTS system, NCTS Phase 5, allows for goods to be transported under a common transit regime with a single declaration and a single guarantee, primarily benefiting the European geography, which has the largest share in our country's exports. NCTS Phase 5 replaces the current NCTS Phase 4 system and introduces various improvements, and it has been implemented in our country's customs as of November 17, 2024. Following our country, France and North Macedonia will transition to the NCTS Phase 5 version in the coming weeks.

In this context, prior to the transition to the NCTS Phase 5 version in our country, necessary training and awareness activities have been organized for all stakeholders through written and visual materials, and all parties, including relevant countries, have been informed about the matter prior to the transition.

Compared to the previous version of the NCTS, the Phase 5 version has fundamental structural changes that are largely different in electronic message content and system structure. This has necessitated a disruption in the customs systems under the Ministry of Trade and created a need for adaptation among all parties using the said system. During this transition process, the use of alternative declaration methods related to the transit regime has been facilitated to ensure that operations can continue.

Currently, the Ministry of Trade's customs systems are actively functioning nationwide, and the matters communicated to our Ministry during this process are being addressed meticulously; broad technical and administrative support is being provided to all stakeholders by the teams of the Ministry of Trade.

Respectfully submitted to the public’s information.

The President of the Plastic Industrialists Association (PAGDER), Kenan Benliler, stated that the requirement for a report to be prepared by an authorized customs consultant for the import of certain plastic raw materials negatively impacts the sector. He said, "This regulation requires monitoring of which sector the imported products supplied domestically will be used for. However, declarations are submitted at the time of import, while sales may occur much later. In this case, it seems that a healthy process cannot be maintained."

Regarding Retroactive Cost Increase
Benliler mentioned that the regulation has become a retroactive cost increase factor for companies due to its application to imports that have occurred since the beginning of 2024, stating, "Companies have continued to import as in previous years, taking into account their cost items, and brought their products to market. However, at this point, it is said that a report from an authorized customs consultant must be prepared for all imports that occur throughout 2024. This situation means an increase in costs in actual trade and thus a decrease in profit margins. It is critically important for all affected sectors that the regulation is updated to exclude declarations for 2024 initially and then reviewed with the input of industry stakeholders."

Creating Inflationary Pressure
Benliler also addressed the inflationary effects of rising costs, saying, "Regulations that increase input costs, such as this one, have a negative impact on inflation, which the public is striving to combat with great self-sacrifice. We believe that addressing the supply side, which is as important as the demand side in combating inflation, and taking steps to reduce input costs is necessary."

Forex - Japanese Prime Minister Shigeru Ishiba is preparing to announce a 21.9 trillion yen economic stimulus package that will address a range of issues from inflation to wage increases. According to reports, the package will be significantly larger than last year's measures and will include expenditures of 13.9 trillion yen from the general account. The total impact of the package, along with private sector spending, is expected to reach approximately 39 trillion yen. The proposed plan is anticipated to be approved by the cabinet on Friday, following Ishiba's return from South America, where he participated in a series of summit meetings. The preparation of the package alongside an additional budget is seen as a significant test of Ishiba's ability to govern during a period when his ruling coalition is in the minority in parliament.

According to Pacific Investment Management Co. (Pimco), one of the world's largest bond managers, stocks and bonds are moving in separate directions, which may indicate that investors could increase their allocation to riskier assets.

According to financial reports, Bank of America is preparing plans to structure risk transfer agreements for smaller lenders. Synthetic risk transfers (SRTs) have rapidly become one of the fastest-growing segments in financial markets for banks and private equity investors. Banks utilize SRTs to gain protection against losses in a loan pool by selling a slice of credit risk to investors and paying them regular fees for assuming the risk. The transfer of risk to investors may trigger regulatory relief, allowing banks to require less capital to balance loans while still maintaining the credit on their balance sheets, thus enhancing returns. Bank of America's move has the potential to significantly expand the pool of investors that can purchase SRTs, as well as banks that can issue them. According to data from the investment firm Chorus Capital, lenders are on track to issue a record amount of SRTs this year. In the first nine months of 2024, $16.6 billion in SRTs has been issued, indicating protection over a much larger base loan pool.