1. What is the Export Regime of Turkey?
Competent authority regarding exports is the Undersecretariat for Foreign Trade. Authority in the field of exports includes a wide variety of subjects;
• regulations,
• support and implementation of exports in the framework of the official
development policies, determination of export policies or more specific subjects like regulation of transit trade
• determination of principles and procedures regarding establishment of free zones.
The legal fundament for export regulations is the "Export Regime Decree" published in 1996. With this new legislation and related measures, export regulations were harmonized with Turkey's international obligations, especially in the framework of WTO and Customs Union between EU and Turkey.
2. What are types of Exports in Turkey?
Export is the "de facto" exportation of goods or their value in compliance with the current Export Regulations, Customs Regulations and bringing the value of the goods back to the country is also accepted as an export by the Undersecretariat for Foreign Trade.
Types of exports are as follows:
a) Exports having no special nature
b) Exports on registration
c) Exports on credit
d) Export by means of consignment
e) Exportation of imported goods
f) Exportation to free zones
g) Exportation made through barter trade
h) Exports through leasing
i) Transit trade
j) Exports without returns
3. Is it free to export all goods?
All goods, other than those whose exportation is prohibited by laws, decrees and international agreements, can be freely exported within the framework of the Export Regime Decree.
However, within the framework of WTO rules, restrictions and prohibitions on exports may be imposed in case of market turmoil, scarcity of exported goods, in order to protect public safety, as well as, articles bearing artistic, historical and archeological value.
Export items that are prohibited and subject to permit are listed in the Communiqué numbered 96/31.
Please visit the website of Undersecreteriat of the Prime Ministry for Foreign Trade.
4. What is the Export Promotion System in Turkey?
Due to WTO regulations and Customs Union with the EU, Turkey now applies measures indirectly assist exporters such as;
• export finance and insurance,
• promotion and marketing assistance.
Overall, Turkey has reshaped incentives provided to exporters, eliminated subsidies in order to harmonize foreign trade policies and increased transparency of export subsidy programs.
5. What are Export Credit, Guarantee and Export Credit Insurance Schemes?
Turk Eximbank has a key role in the liberalization and outward orientation of the Turkish economy. Increasing the competitiveness of Turkish exports under free market conditions is the Bank's primary goal.
Export credits extended through Turk Eximbank have played a crucial role in securing the stable export growth. Turk Eximbank enhances export Performance primarily through credit, guarantee and export credit insurance.
For further information please visit Turk EXIMBANK.
6. What is the current Import Regime?
The Import Regime of 2001 is transparent, explicit and easy to understand for the importers. It is based on the framework of the the World Trade Organization (WTO) and the Customs Union Agreement with European Union.
Customs duties have been rearranged according to product groups (industrial, agricultural, processed agricultural, fish and fishery products) and country of origin of the products in order to be more transparent and simple.
For further information Please visit the website of Undersecreteriat of the Prime Ministry for Foreign Trade.
7. What is the Turkish Legislation on Safeguards?
Safeguard measures are actions taken on the increased imports of a certain product, where such imports have caused or threatened to cause serious injury to the domestic industry. They can be in the form of a quantitative restriction (quota).
Turkey has two different regulations on safeguard measures. One is defined as "Legislation on the Safeguard Measures and Surveillance for Imports of Products Originating in Certain Countries" and designed specially for state trading countries and transition economies which are not members of the World Trade Organization (WTO).
The other is "Legislation on Safeguard Measures and Surveillance for Imports" and implemented on the importation of products originating in countries which have liberal trade regimes, mostly the Members of the WTO.
Textile products, are not in the scope and the coverage of this legislation.
8. What documents are required for importing?
In order to be an importer, having a tax number is sufficient. For importation of agricultural products and some specific items for public security, preservation of the human, animal and plant health, the protection of the environment and consumer rights, additional documents may be required by relevant authorities.
9. What are the requirements to track down in and out bond flows (products and machines) from the plant to the markets in Europe?
In order to track down in and out bond flows, certain official documents are needed. These are mainly : moving certificates (ATR and EUR1), certificate of origin, inspection certificate, control certificate, phytosanitary certificate, veterinary certificate and ATA carnet.
10. What are the import laws to bring in equipment (machines) from US, Japan, Switzerland and EU countries?
The importation of equipment and machines is totally free except for some products which can only be imported with an after-sale maintenance, repair and service certificate.
Products that require a service certification are:
• air conditioners,
• washing machines,
• water heaters,
• earth moving equipment,
• lathes,
• TV sets,
• motor vehicles,
• tractors.
On the other hand, importation of old, used, renovated, defective and obsolete items is subject to permission from the Undrsecretariat for Foreign Trade.
11. What is the custom clearance time and cross border waiting time for major border crossings to Western Europe?
Turkey has two border crossings to Western Europe via Bulgaria and Greece. Both are available for TIR passing. There is no waiting at the customs area since the customs authority inspect the products during loading onsite the factory.
12. What is the basic FDI regime in Turkey?
Foreign direct investment regime of Turkey is regulated by Law No. 6224 of 1954 based on the principle of equal treatment for domestic and foreign investors.
Almost all sectors of the economy are open to private domestic investors and foreign participation.
There are some provisions relating to rights, obligations and restrictions for foreign investors.
These legislative arrangements regulate specific sectors like broadcasting, aviation, maritime transportation, petroleum, and mining.The restrictions are as follows;
- Up to 20% equity participation in broadcasting
- Up to 49% participation in aviation, maritime transportation, port services and value-added telecommunications services
- Real estate trading and fishing are closed to foreign investors
Real and legal persons resident abroad must bring a minimum 50.000 US Dollars per person to establish corporations, become partners in existing companies and opening branch offices.
13. What are the main principles of the foreign investment policy in Turkey?
• Equal treatment : For the purpose of making investments and carrying out commercial activities, to establish a joint stock or limited liability company is necessary. For establishing a company or opening a branch office, minimum capital requirement (per real or legal person) is USD 50,000. Companies with foreign capital have the same rights and obligations as the domestic capital
• No limitation in participation of foreign capital, except broadcasting where the equity participation ratio of foreign shareholders is restricted to 20% (Establishment and Broadcasting of Radio and Television Law No. 3984); and aviation, maritime transportation and ports where the equity participation of foreign shareholders are restricted to 49% (Civil Aviation Law No. 2920; Cabotage Act No 815, Turkish Commercial Code No. 6762)
• Free transfer of profits, fees and royalties and repatriation of capital in the event of liquidation or sale are also guaranteed,
• Open field of activity : Almost all sectors which are open to the private domestic investors are open to foreign participation. Investment by foreigners in the field of real estate is restricted, and establishments in the financial, petroleum and mining sectors require special permission according to appropriate Laws
• Employment of foreigners : There is no limitation for assigning expatriates as managers and technical staff.
• There is no condition of approval of foreign credit acquisition.
• There is no condition of approval of license, know-how, technical assistance and management agreements. Only a registration of these agreements is done through Undersecretariat.
• The Foreign exchanges (including effective) brought from abroad for the purpose of establishing corporations, increasing capital or buying the shares of existing Turkish companies can be blocked in Foreign Exchange Deposits Account.
• The involvement of international investors are highly encouraged in the massive privatization program and the participation of private sector in huge energy, telecommunication and infrastructure projects, especially after the adoption of the amendments to the Turkish Constitution in order to allow the international arbitration, which removes an important disincentive for foreign direct investment.
14. What are the procedures to set up a business in Turkey?
Please take the following steps to establish a limited or joint stock company in Turkey.
First step:
Please submit the following documents to the General Directorate of Foreign Investments
1- For legal entities residing abroad,
• Certificate of Activity (certified by the related Turkish Consulate or in accordance with the provisions of the Abolition of the Requirement for Approval of Foreign Official Documents Agreement)
• Previous year Activity Report
2- For real persons residing abroad
• Copy of passport (certified by the notary public)
• Detailed commercial and industrial background and verifying documents
3- Letter of intent stating that each foreign partner will bring at least 50,000 USD to Turkey as company capital.
4- Draft articles of the company to be established.
5- Power of attorney given by shareholders to the person who will be the contact person in course of the application procedure.
6- Application form prepared in accordance with the attached sample.
Second Step,
For publishing the establishment of the company, please apply to the Ministry of Industry and Trade
Third Step,
For endorsing permission certificate (red paper), apply the GDFI with the following documents:
1- Original of the permission certificate
2- Trade Registry Gazette in which the establishment of the company is published
3- If the foreign exchanges brought as foreign capital is converted in to Turkish Liras, Foreign Exchange Purchase Receipt or if they are kept in foreign exchange deposit account, related bank document should be submitted. ( Foreign Exchange Purchase Receipt or relating bank document should include the name of foreign capital company and foreign partner, the country from which the foreign exchange transferred, currency amount, USD equivalent, TL equivalent and state that the currency was brought as company capital.
Time frame to obtain the following permits:
- Land use permits 1-15 days
- Planning permits 1-15 days
- Building permits 1-15 days
The cost of receiving the above permits is negligible.
For more information on FAQs please visit http://www.turkishembassy.org/ .