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TRADEPOLICIESANDPRACTICESBYMEASUREMeasuresDirectlyAffectingImportsImportproceduresandrequirementsCustomsLawNo.
4458(asamended),togetherwithitsRegulationsconstitutesthebasiclegalframeworkforcustomsmatters.
Overtheyears,TurkeyhasbeentakingstepstograduallyalignitscustomslegislationwiththeacquiscommunautaireoftheEU.
SinceitslastTPR,TurkeyhasredraftedtheimplementingprovisionsoftheCustomsLaw.
Inaddition,thetasksofthenewMinistryofCustomsandTradewerepublishedinJune2011,followingthegovernmentreorganization.
Ontheadministrativeandoperationalside,TurkeyhasconcludedanagreementwithGreecetobuildasecondborder-crossingbridge;signedaprotocolwithGeorgiaonthecirculationofpassengers,vehicles,andgoodsatthree-border-crossingpointsandagreedminutesregardingtheexchangeofdata;inauguratednewpremisedattheHamzabeyliBorderGate;reopenedtheobanbeyRailroadBorderGate(closedin1980);andengagedincooperationwithSyriaandIranonthejointoperationofbordercrossings.
UndertheGIMOP(CustomsModernizationProject),theMinistryofCustomsandTradehasbeenimplementingseveralprogrammestomakethecustomsadministrationmoreeffectiveandefficient.
TheGMSS(ProjectofSecuritySystemsatCustomsBorderPosts)programmewaslaunchedin2001tomonitorandpreventillegaltraffickingofgoods,vehicles,andtravelers.
FurthermoduleshavebeenintegratedundertheGMSSumbrella,includingavehicleandcontainerinspection(x-ray)system,anucleardetectionsystem,aGPS-basedtransit-vehicle-trackingsystem,andalicence-platescanningsystem.
In2002,BILGE(acomputersoftwarepackage)wasintroducedtocarryoutallreal-timecustomsformalities.
BILGEincludessubsystemsforsummarydeclarations,warehousemanagement,tariffs,andaccounting.
TheformatoftheTurkishcustomsdeclarationhasbeenalignedwiththesingleadministrativedocument(SAD)usedforcustomsproceduresintheEU.
Inordertobenefitfrompreferentialratesofcustomsdutyduringcustomsclearance,EUR.
1orEUR.
MEDmovementcertificatesarerequiredforimportsfromnon-EUcountrieswithwhichTurkeyhasfree-tradeagreements,andfromEUmemberstatesforimportsofagriculturalgoods,andcoalandsteelproducts.
TheCustomsAuthoritymaygrantpermissiontosimplifyformalitiesandprocedures,includingbywaivingsomeofthedocumentationrequirements.
Theuseofaclearingagentisnotcompulsory,andtheuseofcustomsbrokersisnotobligatory.
Asummarydeclaration,normallyeffectedusingBILGE,mustbepresentedatthecustomsofficebytheendoftheworkingdayfollowingthearrivalofgoodsatCustoms.
Theoriginalmanifestorbillofladingmustbeattachedtothesummarydeclaration.
Importclearanceisnormallycompletedwith24hours,providedalltherequireddocumentationisinorder,irrespectiveofthemodeoftransport.
Theimportersareresponsibleforcustomsclearance.
Merchandisearrivingbyroad,railway,orairtransportshouldbeclearedwithin20days,forimportationsviamaritimetransporttherequirementis45days.
Thedeadlinemaybeextendedattherequestoftheimporter.
Unlessadministrativeorjudicialproceedingshavebeeninvokedregardingtheimportedgoods,failuretoclearmerchandisethroughCustomswithinthestipulateddeadlinesmayleadtoconfiscationanddisposalatauction.
Thedeclarantmayreservetherighttoapplythefreecirculationprocedureuntilpublicationoftheauctiondate,againstpaymentofafineof1%ofthec.
i.
f.
valueofthegoodsinquestion.
Certaingoodsmayonlybeimportedthroughspecializedcustomsoffices.
Motorvehicles,tractors,motorcyclesandtheirsparepartsandaccessoriesmustbeclearedattheYesilkoy,Gebze,IzmitorMersincustomsdirectorates;textileproductsmustpassthroughtheCustomsdirectorateatHalkali,AtatürkHavaliman,SabihaGkenAirport,Gemlik,Mersin,Izmir,Denizli,Ankara,KayseriorGaziantep;fertilizermaybeimportedthroughthecustomsadministrationatDerince,Mersin,Samsun,Izmir,Aliaga,Dikili,Kapikulestation,Tekirdag,Bandirma,Gemlik,Iskenderun,Ambarli,HaydarpasaorAntalya;andsomesolventsandpetrochemicalproductsmustbeclearedbytheGebzePetrochemicalCustomsDirectorate.
Exceptionalcircumstances,wherebygoodsmaybeimportedthroughothercustomsdirectorates,aredefinedinthelegislationsettingupthespecializedcustomsdirectorates.
Anynaturalorlegalpersonwithataxnumberiseligibletoundertakeimports,withoutanycertificationrequirements.
Theimportationofcertainproductsrequiresanimportlicence(section(vii)below).
Effective1January2010,textilesandclothingproductsbecamesubjecttoregistration,tomonitorimportsofthesegoods.
Registration,whichtakesplacepriortoimport,includesacertifiedexporterregistryform.
Informationtobeprovidedincludesthecompany'slegaltitle,address,numberofemployees,totalsales,internationalqualitycertificates,andalistingofotherdestinationsforthecompany'sexports.
ApplicationsforregistrationmaybesubmittedviatheinternetorXML-basedsoftware.
Theexporterregistryformiscertifiedbythecompetentauthorities,e.
g.
theChambersofCommerce,Turkishpublicnotaries,oraTurkishConsulateGeneral.
Theformshouldbesubmittedonce;updatesorrenewalsmaybeeffectedthroughtheinternet.
Exportersareremindedtorenewtheircertificatesviae-mail.
TheproductcoverageofthissurveillancemeasureisprovidedinTableAIII.
1.
OrdinarycustomsdutiesBoundandappliedMFNduties,statutorytariffsTurkey'stariffisbasedonthe2007HarmonizedCommodityDescriptionandCodingSystem(HS)andcomprises16,448tarifflines.
Turkey'sCustomsTariffisimplementedatthe12level,wherethefirst6digitsindicatetheHarmonizedSystemnomenclature,the7thand8thdigitscorrespondtothecombinednomenclatureoftheEU,andthe9thand10thdigitsareusedtodisplaysubheadingscreatedfortaxation.
Thepurposeofthelasttwodigitsistocollectstatisticaldata.
AsaresultoftheUruguayRound,Turkeyboundallagriculturetarifflinesand33.
5%ofitstarifflinesforindustrialproducts.
Turkey'ssimpleaverageboundrateiscloseto72%foragriculturalproducts,comparedwith17.
4%onitsnon-agriculturalboundtarifflines(TableIII.
1).
Turkey'sfinalboundratesrangefromzeroto225%onagriculturalgoodsandfromzeroto82%onnon-agriculturalitems.
Theincidenceoftariffbindingsinnon-agriculturalsectorsisnotuniform(ChartIII.
1).
WhileTurkeyhasboundmorethan60%ofthetarifflinesformachinery,precisionequipment,chemicals,transportequipment,andplasticsandrubber,notarifflinesareboundforproductsfallingwithinHSChapters26,36,60,64,67,75,78,83,89,93and97.
Turkey'sappliedtariffconsistspredominantlyofadvaloremrates,whichapplyto98.
3%oftarifflines.
Specific,compound,mixed,andvariabledutiesaffectsome278tarifflinesatthe12digitlevel(TableAIII.
2).
Specificdutiesareleviedoncertainalcoholicbeverages,salt,andcinematographicfilms.
Mixeddutiesapplytoitemssuchascarpets,glassandglasswareproducts,andwatches.
Thecompounddutiesaffectmainlyprocessedagriculturalproductssuchasyoghurtandpasta.
Variabledutiesapplytoitemssuchasdairyspreads,sugarconfectionery,chocolate,malt,cereals,andpreparedpotatoes.
ThecompoundandvariabledutiesarelinkedtotheimplementationofTurkey'scustomsunioncommitmentswiththeEU,wheretheTurkishliraequivalentsofthecomponentsexpressedineurosaretobepaidintotheMassHousingFund,whichisappliedtoAnnexesIIIandIVoftheTurkishImportRegime.
Turkeydoesnothaveseasonaltariffs.
Turkey'simplementationoftheCustomsUnionDecision,andthusthecommonexternaltariffonindustrialproducts,yieldsamarkeddifferencebetweenthetariffprotectionaffordedtoagriculturalproductionversusmanufacturingindustries.
WhereasthesimpleaverageappliedMFNtariffamountedto12.
2%overallin2011,theaveragewas47.
9%foragriculturalgoodsandonly4.
1%forproductswithinHSChapters25to97(TableIII.
2).
Thetariffpeaksarealsomarkedlyhigherintheagriculturesectorcomparedwithothereconomicactivities.
WhilsttheaverageMFNtariffonmeatanddairyproductsexceeds100%,andiscloseto100%onmeatandfishpreparations,onlytextilesandclothingitemsfaceaveragetariffsabove10%amongthenon-agriculturaltarifflines(TableAIII.
3).
Duty-freeitemsrepresent23.
2%ofalltarifflinesandincludeproductsundertheInformationTechnologyAgreement,pharmaceuticalproducts,pulpofwood,somecement,andproductsofanimalorigin.
AlthoughTurkeyisnotasignatorytotheplurilateralAgreementonTradeinCivilAircraft,itprovidesduty-freetreatmenttoalargenumberofitemsforuseincivilaircraft(ListVItothe2010CustomsTariff).
TableIII.
1StructureofMFNtariffsinTurkey,2011(Percent)2011Finalbounda1.
Boundtarifflines(%ofalltarifflines)51.
951.
92.
Duty-freetarifflines(%ofalltarifflines)23.
23.
03.
Tariffquotas(%ofalltarifflines).
.
.
.
4.
Non-advaloremtariffs(%ofalltarifflines)1.
70.
25.
Non-advaloremtariffswithnoAVEs(%ofalltarifflines)0.
30.
26.
Simpleaveragetariffrate12.
236.
9Agriculturalproducts(WTOdefinition)47.
971.
9Non-agriculturalproducts(WTOdefinition)5.
017.
4Agriculture,hunting,forestryandfishing(ISIC1)26.
045.
8Miningandquarrying(ISIC2)0.
28.
6Manufacturing(ISIC3)11.
636.
17.
Simpleaveragerateofdutiablelinesonly15.
9n.
a.
8.
Domestictariff"spikes"(%ofalltarifflines)b9.
13.
79.
Internationaltariff"peaks"(%ofalltarifflines)c14.
633.
010.
Overallstandarddeviationofappliedrates27.
144.
111.
"Nuisance"appliedrates(%ofalltarifflines)d6.
70.
0.
.
Notavailable.
n.
a.
Notapplicable.
aFinalboundratesarebasedonthe2006tariffscheduleinHS02nomenclature.
Calculationsonboundaveragesarebasedon6,347boundtarifflines(includingpartiallybound).
bDomestictariffspikesaredefinedasthoseexceedingthreetimestheoverallsimpleaverageappliedrate(indicator6).
cInternationaltariffpeaksaredefinedasthoseexceeding15%.
dNuisanceratesarethosegreaterthanzero,butlessthanorequalto2%.
Note:2011tariffisbasedonHS07nomenclatureconsistingof16,448tarifflines(at12-digittarifflinelevel).
CalculationsincludeAVEsprovidedbytheauthoritiesfornon-advaloremrates.
IncaseofunavailabilityofAVEs,theadvalorempartisusedforcompoundrates.
Source:WTOSecretariatcalculations,basedondataprovidedbytheTurkishauthorities.
LawNo.
474onCustomsTariffScheduleallowstheGovernmenttoincreasetheappliedMFNrateswhenthesearedeemedinsufficienttoprovide"adequate"protectiontodomesticindustries.
TheLawsetstheso-calledstatutorytariff,whichisdifferentfromtheappliedMFNtariffadoptedannuallybytheCouncilofMinisters.
UndertheLaw,theGovernmentmayreplaceappliedMFNratesby150%ofthecorrespondingratesofthestatutorytarifftoensurehigherprotectiontolocalindustries.
However,accordingtotheTurkishauthorities,thestatutorytariffisonlyappliedfortarifflinesthatareunboundintheWTOframeworkorfalloutsideofthescopeoftheCustomsUnionDecision.
ForboundtarifflinesorlinescoveredbytheCustomsUnion,anyincreasesintheappliedMFNratewillbecappedbyTurkey'scommitmentlevels.
TableIII.
2SummaryanalysisofMFNtariff,2011AnalysisApplied2011ratesImports2010a(US$million)No.
oflinesaSimpleavg.
tariff(%)Rangetariff(%)Standarddeviation(%)CVTotal16,44812.
20-22527.
12.
2185,541HS01-242,93649.
20-22548.
81.
07,683HS25-9713,5124.
10-37.
93.
80.
9165,185ByWTOdefinitionAgriculture2,74247.
90-22551.
31.
19,721Liveanimalsandproductsthereof398105.
90-22571.
40.
7584Dairyproducts178115.
88.
3-18060.
90.
5115Coffeeandtea,cocoa,sugar,etc.
42339.
10-14533.
50.
91,172Cutflowersandplants11910.
60-46.
814.
91.
492Fruitandvegetables60041.
00-145.
822.
60.
6672TableIII.
2(cont'd)Grains6552.
30-13045.
00.
91,057Oilseeds,fats,oilsandtheirproducts25020.
10-5015.
90.
82,755Beveragesandspirits30246.
80-7027.
70.
6162Tobacco2838.
810-74.
922.
30.
6368Otheragriculturalproducts3796.
40-46.
88.
51.
32,742Non-agriculture13,7065.
00-81.
97.
11.
4163,148Fishandfisheryproducts39335.
00-81.
918.
00.
5242Mineralproducts,preciousstonesandpreciousmetals8472.
60-21.
123.
01.
211,893Metals1,8564.
20-22.
45.
11.
226,980Chemicalsandphotographicsupplies3,1324.
70-37.
92.
60.
524,607Leather,rubber,footwearandtravelgoods4584.
10-174.
21.
03,471Wood,pulp,paperandfurniture7930.
80-101.
92.
45,290Textilesandclothing2,3727.
90-123.
00.
410,905Transportequipment4225.
20-224.
80.
917,969Non-electricmachinery1,4501.
60-9.
71.
40.
921,368Electricmachinery8382.
40-142.
71.
114,137Nonagriculturalarticlesn.
e.
s.
1,0402.
40-13.
91.
90.
85,659Petroleum1053.
40-4.
71.
00.
320,626ByISICsectorbAgriculture,hunting,forestryandfishing85526.
00-15032.
01.
26,170Mining1910.
20-11.
681.
15.
914,249Manufacturing15,40111.
60-22526.
72.
3152,429BystageofprocessingRawmaterials1,66718.
80-15027.
01.
426,129Semi-processedproducts5,9436.
50-13511.
01.
753,377Fully-processedproducts8,83814.
80-22533.
32.
393,362aThetotalofimportsishigherthanthesumofsub-items,ascertainimports,tothevalueofUS$12,672.
8millionarenotclassifiedintheHarmonizedSystem.
bInternationalStandardIndustrialClassification(Rev.
2).
Electricity,gasandwaterareexcluded(1tariffline).
Note:CV=coefficientofvariation.
CalculationsincludeAVEsprovidedbytheauthoritiesfornon-advaloremrates.
IncaseofunavailabilityofAVEs,theadvalorempartisusedforcompoundrates.
Source:WTOSecretariatcalculations,basedondataprovidedbytheTurkishauthorities;importsdatafromUNSD,Comtradedatabase.
SignificantdifferencesbetweenboundandappliedratesleaveTurkeysomeflexibilitytoincreaseitsMFNdutiesonanumberofagriculturalgoods(ChartIII.
2).
Thegapbetweenboundandapplieddutiesonindustrialproducts,combinedwitharelativelylowincidenceoftariffbindings,providessignificantscopeforTurkeytoincreaseitsdutiesonnon-agriculturalproductswithintheWTOframework.
However,unilateralincreasesbyTurkeywouldruncontrarytotheCustomsUnionDecision.
Overall,Turkey'sappliedMFNrateshavenotchangedsignificantlysince2007.
Amongrecentchanges,TurkeyreduceditsMFNtariffsonlivebovineanimalsforbreeding(HS010290)from20%tozeroeffective28October2010;from30%to15%forlivebovineanimalsforslaughter;from225%to30%oncertainsheepmeat(HS0204)on22December2010;andfrom130%tozeroonwheat,oatandbuckwheat(HS1001,1004and1008)fortheperiod25Februaryto1May2011.
However,theMFNimportdutywasincreasedto75%oncertainmeat(HS0201and0202)on2July2011,andtheMFNdutywasincreasedby20%or30%onsometextileandapparelproductson15September2011.
(b)TariffpreferencesCommensuratewithitscommitmentsundertheCustomsUnionDecision,Turkeyhasbeenaligningitspreferencestothirdcountries,includingtheGSPScheme,withtheEUtraderegime.
ThisisleadingtoprogressiveeliminationofallorvirtuallyalltariffsonproductsfallingwithinHSChapters25to97,andselectiveliberalizationofcertainagriculturalcommoditiesandprocessedagriculturalproducts(TablesIII.
3andAIII.
4).
Thetariffpreferencesonagriculturalgoodsaregenerallyimplementedthroughtariff-ratequotas(section(iv)below).
TableIII.
3Tariffaverages,2011(Percent)HS01-97HS01-24HS25-97WTOagricultureWTOnon-agricultureMFN12.
249.
24.
147.
95.
0GSP10.
047.
51.
946.
02.
9Serbia8.
849.
20.
047.
81.
0Tunisia8.
849.
20.
047.
81.
0Syria8.
849.
20.
047.
81.
0Morocco8.
849.
20.
047.
81.
0WestBankandtheGazaStrip8.
849.
20.
047.
81.
0Kosovo8.
849.
20.
047.
81.
0Croatia8.
849.
10.
047.
71.
0Israel8.
849.
20.
048.
0a1.
0Countriesbenefitingfromspecialincentivearrangements8.
746.
80.
445.
21.
4Albania8.
748.
60.
047.
11.
0LDC8.
646.
70.
445.
01.
4Macedonia(FYR)8.
647.
80.
046.
31.
0Egypt8.
547.
50.
047.
80.
7EU8.
248.
40.
047.
40.
9Georgia7.
743.
30.
041.
41.
0EFTA7.
443.
80.
047.
40.
0Bosnia-Herzegovina0.
95.
00.
05.
30.
0aTheaverageonpreferentialagreementsmaybehigherthantheMFNaverageasinsomecasesthereisnoinformationonAVEsortheadvalorempartofnon-advaloremduties.
Note:CalculationsincludeAVEsprovidedbytheauthoritiesfornon-advaloremrates.
IncaseofunavailabilityofAVEs,theadvalorempartisusedforcompoundrates.
Source:WTOSecretariatcalculations,basedondataprovidedbytheTurkishauthorities.
Otherdutiesandcharges(ODCs)ForalltarifflineitemsinitsGoodsSchedule,Turkeyhasbound"otherchargesandduties"(ArticleII.
1(b)oftheGATT)atnon-zeroratesforallitemsexceptthosemarked"free".
ThepossibleODCscouldamountto15%ofthecustomsdutyasa"municipalityshare",inadditiontotaxesof4%forgoodsarrivingbymaritimetransport(transportationinfrastructurefee)or3%byroad,railorairtransport.
Atpresent,TurkeyappliesaMassHousingFund(MHF)levyonimportedfishandfishproductsfallingwithinHSChapters2,3,15,16and23.
ThelevyisdifferentiatedaccordingtoimportsfromtheEU,EFTAmemberstates,andothercountries,andrangesfromzeroto35%advalorem.
Turkeyhasnotbounditstariffsforfishandfishproducts,butimportsfromEFTAmemberstatesenterfreefromimportdutyandtheMHFlevyundertheTurkey-EFTAFreeTradeAgreement.
Tariff-ratequotasandtariffexemptionsTurkeydoesnothavetariffquotacommitmentslistedinitsGoodsSchedule.
However,itoccasionallyopensMFNtariffquotasunilaterally.
Quotaallocationsaremadeona"firstcome,firstserved"or"pastperformance"basis.
Thein-quotatariffratesaredifferentiatedbetweenduty-freeandreducedMFNrate.
Inaddition,preferentialtariff-ratequotasareadministeredonnumerousagriculturalandprocessedagriculturalproducts(TableAIII.
5).
Onnon-agriculturalproducts,Turkeyopenedpreferentialtariff-ratequotasforacrylonitrylandcompressorson1January2011.
Allocationsofthe12-monthTRQsaremadeona"pastperformance"and"productioncapacity"basis.
Approximately90%oftheTRQforcompressorshasbeenutilizedand100%foracrylonitryl.
TheInvestmentEncouragementProgramme(IEP)providesfordutyandtaxconcessionsonimports.
Inaddition,exportersbenefitfromtheinward-processingscheme.
Importsofcertainproductsfordisabledpersonsorcertainpublicadministrations,financialleasing,projectsfinancedbydonors,andsometemporaryimportsareeligiblefortariffconcessions.
AllimportsbytheMinistryofDefenceinthecontextoftheNorthAtlanticTreatyOrganizationareexemptfromthepaymentofcustomsduties(TableIII.
4).
TheIEPaims,interalia,toreduceregionaldisparitiesandpromotesmallandmedium-sizedenterprises.
Inprinciple,allinvestmentprojectsareeligible.
ProjectapplicationsaresubjecttoassessmentbytheMinistryofEconomy.
Investmentprojects,whicharegrantedanInvestmentEncouragementCertificatebenefitfromcustomsdutyexemptionsonallmachineryandequipmenttobeusedintheproductionprocess.
ExemptionfromVATisprovidedpursuanttoLawNo.
3065of25October1984.
Domesticandforeigninvestorsbenefitfromequaltermsandconditions.
ForeignexchangeearningactivitiesareexemptfromstampdutyandchargespursuanttoLawsNos.
488and492.
TheinwardprocessingschemeallowsTurkishmanufacturers/exporterstoimportmaterialsfreeofdutyandothercommercialpolicymeasures.
Goodsimportedunderthisschemeareintendedforre-exportfromthecustomsterritoryofTurkeyintheformof"compensatingproducts",i.
e.
allgoodsobtainedfromprocessingoperations.
Normally,themanufacturer/exporterwillrequestthesuspensionofimportdutyandVATuntilexportofthefinishedproduct,butthedutiesandVATmayalsobepaidandsubsequentlyreimbursedunderthedrawbacksystem.
The"suspensionlist"(ListVinTurkey'sCustomsTariff)enablesmanufacturerstoimportcertainrawmaterialsandintermediaryinputs,i.
e.
chemicalrawmaterialsandinputsfortheelectronicsindustry,atloworduty-exemptrates.
Moreover,tariff-ratequotasmaybeopenedforproductswithinsufficientproductioncapacitieswithintheCustomsUnion.
TableIII.
4Keyfeaturesofconcessionalentryschemes,2011SchemeEligibilityIncentivesInvestmentencouragementprogrammeFeasibleinvestmentprojectsdeemedbytheUndersecretariatofTreasurytoreduceregionalimbalanceswithinthecountry,createnewemploymentopportunities,andincreasecompetitivenesswhileusingtechnologieswithgreatervalueaddedExemptionfromcustomsandfundleviesforimportedmachineryandequipmentontheMachineryandEquipmentlistapprovedbytheUndersecretariatoftheTreasuryaVATexemptionforimportedandlocallypurchasedmachineryandequipmentonthelistInwardprocessingregime(a)Conditionalexemptionforimports(suspensionsystem)AnyexporterIntendedforgoodstobere-exported;suspensionofdutyandVATonrawmaterials,auxiliarymaterials,semi-finishedandfinishedproducts,packagingmaterials(b)UseofequivalentgoodsAnyexporterSuspensionofcustomsdutiesandVATonimportedinputsafterexportofcompensatingproducts(c)RepaymentofdutiescollectedonimportsAnyexporterRefundofcustomsdutyandVATpaidonimportedinputs,afterexportofgoodswithimportedinputs,basedonadrawbackmethodNATONorthAtlanticTreatyOrganization0%onallimportsDefenceMinistryofNationalDefenceorbypublicinstitutionsonbehalfoftheMinistry0%onallimportsDonationsStateadministrations;certainitemstobeusedmainlyforthepublicinterest,approvedbyrelevantministries.
.
Vehiclesproducedespeciallyfordisabledpersons.
.
FinancialleasingVessels,aircarriers,medicalequipment,andhigh-techproductsTotalorpartialrelieffromimportdutiesuptothedatetheleasingcontractisover;VATreductionsMovableandunmovablepropertySuspensionofallcustomsdutiesandexemptionofduties,charges,andfeesfortheleasingcontractuptothedatetheleasingcontractisoverTemporaryimportsAnyimporter;certaincommercialorpersonalitemsTotalorpartialrelieffromimportdutiesontemporaryuseinTurkeyfor6to12monthswithoutanychangeexceptnormaldepreciationduetotheiruseProjectcredit(donor)ProjectevaluationcriteriaofTurkEximbankTermsandconditionsoftheprojectloanareinaccordancewiththeprovisionsoftheOECDConsensusEncouragementoftourism.
.
.
.
Private(special)lawsregardingexemptions.
.
.
.
.
.
Notavailable.
aGoodsimportedat20%duty:passengervehicles,buses(excludingdouble-deckerbuses),tractors(excludingtractorsconformingtoEuro-1orEuro-2normsandhavingenvironment-friendlyengines),trailers(exceptrefrigeratedtrailers),televisions,videos,minirefrigerators,furniture,importofyachts(includingmotorboats),trucks,(excludingoff-roadtrucktypesandrock-typedumptrucksthatarenotallowedonhighways),mixers,andtrans-mixers.
Goodsimportedat18%duty:expansionornewinvestmentsforaminimumcapacityof100,000unitsperyearoffirmsthatwillmanufactureautomobilesconsideredasnewmodelsforaperiodoftenyearsafterthedateoftheirfirstproductionworldwide.
Goodsimportedat10%duty:rawmaterials,intermediarygoods,andoperatingmaterialstobeimportedforoperationalneeds.
Goodsimportedat5%duty:constructionmaterial.
Note:Noperformancerequirementsareinplaceundertheseschemes.
Source:WTOSecretariat,basedoninformationprovidedbytheTurkishauthorities.
FeesandchargesforservicesrenderedAllshipmentsrequiringformalclearancebytheTurkishcustomsauthoritiesaresubjecttoanordinofeeofUS$100percustomsdeclaration,andastampduty,setatTL40.
10for2011.
ChargesforprinteddocumentsusedbythecustomsadministrationareenumeratedinTableIII.
5.
Customsclearanceoutsideofnormalopeninghoursincursadditionalcharges.
ThefeeforovertimeissetatTL5.
50perhourforexporttransactionsandTL13.
20perhourforallotheroperations.
Costsforanalysesorexaminationscarriedoutincustomslaboratoriesoroutsourcedunitsarebornebythedeclarants(CustomsActNo.
4458,Article66,subparagraph4,amendedbytheActof18June2009andActNo.
5911).
Consignmentsvaluedat75orlessdonotrequireformalclearancebyCustoms.
TableIII.
5FeesandchargesNameofaccountParcel/PcsAnnexno.
PriceCustomssummarydeclarationform1,00091.
70Certificateofcustomsstatus65Applicationforcustomsprocedurewitheconomicimpact(applicationforauthorizationtooperatecustomswarehouses)inwardprocessingcontrolsheet(outwardprocessingcontrolsheet)55Auth.
forcustomsprocedurewitheconomicimpact(controlsheetforauth.
tooperatecustomswarehouses)inwardprocessingauth.
(outwardprocessingauth.
controlsheet)56Verbaldeclarationfortemporaryimportation57Inf2(outwardprocessingtriangulartraffic)64Inf9informationsheet(inwardprocessing)47IdentificationandassessmentsheetforgoodsconsignedtoEUfromfreezones67Applicationforreturnorremoval77Containertrackingformatentry2,000Containertrackingformatexit2,000Applicationforendingcustomstransactionsofgoodsthatviolateintellectualandindustrialpropertyrights19Customsdeclarationinquadruplicate50020.
22.
20Continuationsheetinquadruplicate50020.
4TSdocument(controlsheet)36-36,1TSsimplifiedprocedure(controlsheet)36.
2-3LoadinglistT536.
4-5Inf1informationsheet50Inf5(inwardprocessing/triangulartraffic)49Inf6(informationsheetfortemporaryimportation)61Inf1informationsheet(inwardprocessing)51Inf6form(customswarehouses/handlinginfreezones)41TemporaryimportdeclarationandundertakingforvehiclesleavingtheTurkishcustomsterritory(83/A)68Temporaryimportdeclarationandundertakingfornon-commercialgoodsconsignedfromtheTurkishcustomsterritory(83/B)TableIII.
5(cont'd)Customsdeclarationinoctoplicate25020.
13.
30Continuationsheetinoctoplicate25020.
3Inf4informationsheetLaboratoryanalysisreport305.
50LaboratoryanalysiscontinuationreportSecondanalysisreport82Certificateofauthorizationforprocessingundercustomscontrol53Applicationforbindingtariffinformation1Source:InformationprovidedbytheTurkishauthorities.
Animportermayappointacustomsbrokertohandleformalclearanceprocedures.
Goodsthatfailtopasscustomsclearancewithin45days(fromthedateonwhichthesummarydeclarationislodgedforgoodscarriedbysea)or20days(goodstransportedbymodesotherthansea)aredisposedof.
TheCustomsOfficemayextendthisperiodforjustifiedreasons.
Anadditional30daystocompletetheproceduremaybegrantedagainstasupplementaryfeeof1%ofthevalueoftheshipment.
Turkeybeganfullimplementationofastrip-stamprequirementforalcoholicbeveragesandtobaccoproductsinNovember2007.
Thespecialstampcontainsanactivatedcodetobeappliedoneachproduct.
Forimportedgoods,thecodifiedlabelmaybeaffixed(i)atproductionsitesabroadbeforetheproductsareshippedtoTurkey,(ii)incustomsareasforalcoholicbeveragesandtobaccoproductsinTurkey,or(iii)atfacilitiesoperatedbyanauthorizedcompanyintheprovincesofIstanbul,Izmir,orMersin.
Thepriceforthestripstampsisthesameforimportedanddomesticallyproducedgoods,exceptforbeer,wherethepricedifferenceisduetothecostofthestamppaper.
TheTurkishauthoritiesareconsideringvariousoptionstoeliminatethepricedifference.
ApplicationofinternaltaxesTheSpecialConsumptionTax(SCT)wasintroducedon1August2002,replacing16selectivetaxesonoilproducts,motorvehicles,alcoholicbeveragesandtobaccoproducts,andvariousluxurygoods.
TheSCTisleviedonimportsaswellasdomesticproduction,andpublishedintheformoffourlists.
TheSCTisprimarilycollectedonimportswhengoodsareclearedthroughCustoms,andfordomesticallyproducedgoodswhenthesearedeliveredtothecustomers.
ThepetroleumproductscoveredbytheSCTandthecorrespondingtaxratesareenumeratedinTableAIII.
6.
Airconditioners,refrigerators,freezers,recordandcassetteplayers,andtelevisionreceiversaresubjecttoSCTatarateof6.
7%advalorem;forcaviar,furs,preciousstones,cosmetics,mobilephones,crystalchandeliers,andrevolverstheSCTamountsto20%advalorem.
Thetaxratesonmotorvehiclesandothertransportequipmentrangefrom1%forcertainbusesto84%forcertainvehiclesunder3.
5tonnes(TableIII.
6).
TableIII.
6Excisedutiesorspecialconsumptiontaxonmotorvehicles,2011HSCodeProductdescriptionTaxrate(%)8701.
20Tractorsforsemi-trailers487.
02Motorvehiclesfortransportof10personsandmore(includingdriver)AutobusMidibusMinibus14987.
03Motorcarsandothermotorvehiclesprincipallydesignedforthetransportofpersons(otherthanthoseofheadingNo.
87.
02),includingstationwagonsandracingcars.
aThosewithmaximumloadcapacityof850kgorless,andwithpistondisplacementoflessthan2,000cc10Thosewithmaximumloadcapacityofmorethan850kg,andwithpistondisplacementoflessthan2,800cc10Onlythosewithelectricmotor10Ofacylindercapacitynotexceeding3,200cm3,having9seatsincludingdriver10Onlythosewithelectricmotor10OthersOfacylindercapacitynotexceeding1,600cm337Ofacylindercapacityexceeding1,600cm3butnotexceeding2,000cm360Ofacylindercapacityexceeding2,000cm384OnlythosewithelectricmotorOfamotorpowernotexceeding85kW3Ofamotorpowerexceeding85kWbutnotexceeding120kW7Ofamotorpowerexceeding120kW158703.
10.
11.
00.
00Vehiclesspeciallydesignedfortravelingonsnow,vehicleswithcompressionignition,internalcombustionreciprocatingpistonengine/dieselandsemi-diesel)orvehicleswithspark-ignitioninternalcombustionreciprocatingpistonengine6.
78703.
10.
18.
00.
00OthersGolfcarssimilarvehicles6.
787.
04MotorvehiclesforthetransportofgoodsbOfcylindercapacitynotexceeding3,000cm310Ofcylindercapacityexceeding3,000cm3butnotexceeding4,000cm352Ofcylindercapacityexceeding4,000cm375OnlythosewithelectricmotorOfamotorpowernotexceeding85kW10Ofamotorpowerexceeding85kWbutnotexceeding120kW52Ofamotorpowerexceeding120kW75Ofloadlimitunder620kgandhavingboxtruckOnlythosewithelectricmotor10Others10OthersOnlythosewithelectricmotor4487.
05Specialpurposemotorvehicles,otherthanthoseprincipallydesignedforthetransportofpersonsorgoods(forexample,breakdownlorries,firefightingvehicles,concrete-mixerlorries,roadsweeperlorries,sprayinglorries,mobileworkshops,mobileradiologicalunits)(excludingfirefightingvehicles)Thoseonlysubjecttorecordingandregistration,excludingfirefightingvehicles487.
09Workstrucks,self-propelled,notfittedwithliftingorhandingequipment,ofthetypeusedinfactories,warehouses,dockareasorairportsforshortdistancetransportofgoods;tractorsofthetypeusedonrailwaythecomponentsandpartsofthesevehicles487.
11Motorcycles(includingmopeds)andcyclesfittedwithanauxiliarymotor,withorwithoutside-cars;sidecars(exceptsidecars)(exceptonlythosewithelectricmotor)Ofacylindercapacitynotexceeding250cm3Ofacylindercapacityexceeding250cm38378711.
90.
00.
00.
00Others(onlythosewithelectricmotor)Ofamotorpowernotexceeding20kWOfamotorpowerexceeding20kW337TableIII.
6(cont'd)88.
02Otheraircraft(forexample,helicopters,aeroplanes);spacecraft(includingsatellites)andspacecraftlaunchvehiclesandvehiclesunderorbit0.
5(Onlyhelicoptersandaeroplanes)(exceptmilitaryaircrafts,specialhelicoptersandaeroplanesforpesticideandfireextinguishinguse)8901.
10.
10.
00.
11Cruise-shipsnotexceeding18grosstonnage6.
78901.
10.
90.
00.
11Passengershipsandcruiseships6.
789.
03Yachtsandothervesselsforpleasureorsports;rowingboatsandcanoes(exceptinflatable,rowingboats,andcanoesnotexceeding100kg8aOnlypassengercars,stationwagons,racingcars,off-roadvehicles,etc.
(includingcash-carryingvehicles),motorhomes,andmotorvehiclesthatrunonelectricity,gas,solarenergyetc.
Exceptformotorvehiclessuchasambulances,prisonervehicles,funeralvehicles,firedepartmentlead-vehiclesthataremanufacturedforspecialpurpose;compression-ignitionpistonengine(dieselandsemi-diesel)andspark-ignitionpistoncombustionvehiclesthathavebeendesignedtobedrivenonsnow,others(golfcarsetc.
vehicles).
Ofmotorvehicles(exceptallwheel-drivenpassengercars,stationwagons,racecarsandoff-roadvehicles)oflessthan3.
5tonnesweight,whichareusedforcarriageofgoods,andthepassengercapacity(passengercapacityiscalculatingbymultiplyingthenumberofpassenger,includingthedriver,by70kg.
Whenmakingthiscalculation,thefixedapplianceformountingofseatswillbetakenintoconsiderationasiftheyweretheseats)ofwhichislessthan50%ofthemaximumloadcapacity(thetotalloadweight,includingthedriverandthepassengers,thatavehiclecansafelycarry).
bThoseonlysubjecttorecordingandregistration.
Thosewithmaximumloadcapacityof4,700kilogramsorless,andwithotherseatsbythedriverorthosewithsidewindowsotherthanthatofthedriver(excepttruckswithoutboxandwithpistondisplacementof3,200ccorless).
n.
a.
Notapplicable.
Source:InformationprovidedbytheTurkishauthorities.
TheSCTapplicabletoalcoholicbeveragesandtobaccoproductshasundergonesomenotablechangessincethelastReviewofTurkey.
Minimumtaxlevelsonalcoholproducts,expressedinadvaloremequivalents,wereeliminatedin2009.
Sincethen,allalcoholicbeverageshavebeensubjecttospecificratesofSCTonly,exceptforbeer,wherethetaxrateisthehigherof63%advaloremorTL0.
44perlitreofpurealcohol.
Thespecificrateswereincreasedby10%across-the-boardinlate2009andraisedafurther30%inOctober2010.
TheratesofSCTvaryconsiderablydependingonthetypeofbeverage(TableIII.
7).
RevenuefromSCTleviedonrawtobaccoandtobaccoproductsischannelledintotheTobaccoFund.
Thetaxratesapplicablein2011aresetoutinTableIII.
8.
ATobaccoFundlevyonprocessedtobaccowasabolishedasof1January2010.
Importedrawtobacco,includingtobaccousedindomesticallyproducedcigarettes,issubjecttoaTobaccoFundlevyofUS$2,250pertonne.
TurkeyappliesVATonthesupplyandimportofgoodsandmanytypesofservices.
ThegeneralrateofVAThasbeensetat18%since15May2001.
SpecialVATratesapplytoListIandListIIitems,notablytobasicfoodstuffs,booksandsimilarpublications(8%),andtorawcottonanddriedhazelnuts(1%).
Onimports,VATiscalculatedontheimportpriceinclusiveofcustomsdutiesandSCT,ifapplicable.
VATisnotleviedonexports,goodsimportedinaccordancewithaninvestmentincentivecertificate,goodsintransit,orpurchasesbyembassiesanddiplomaticstaff,etc.
TableIII.
7Excisedutiesonalcoholicbeverages,2011HSCodeProductdescriptionTaxrate(%)Taxrate(specificamountinTL)2202.
10.
00.
00.
13Colasodapops25-2203.
00Beersproducedfrommalt630.
4422.
04Wineoffreshgrapes(includingfortifiedwines);grapemust(otherthanthatofheadingNo.
20.
09)(except2204.
10sparklingwineand2204.
30othergrapemusts)02.
442204.
10Sparklingwines016.
1222.
05Vermouthandotherwinesoffreshgrapes(flavoredwithplantsoraromaticsubstances)(except2205.
10.
10.
00.
00,2205.
10.
90.
00.
12)022.
102205.
10.
10.
00.
00Whosealcoholicstrengthbyvolumeis18%orless017.
552206.
00Otherfermenteddrinks(suchasapplewine,pearwine,honeywine),mixedfermenteddrinksnotinanyotherpartofthetariff,andblendsoffermenteddrinkswithnon-alcoholicdrinks02.
442205.
10.
90.
00.
12Whosealcoholicstrengthbyvolumeis22%ormore085.
802207.
20Otheralcoholicdrinkswithanydegreeofalcoholcontent,whichareproducedwithdenaturedethylalcoholorbyalcoholthatisobtainedbydistillation(exceptfordenaturedethylalcoholofanydegree)085.
8022.
08Undenaturedethylalcoholoflessthat80%;distilledalcoholicdrinks,liqueursandotheralcoholicdrinks(2208.
90.
91;2208.
90.
99)exceptforundenaturedethylalcoholoflessthan80%(except2208.
20,2208.
50,2208.
60,2208.
70and2208.
90)085.
802208.
20Grapewineoralcoholicdrinksthatareobtainedbydistillinggrapemarcs071.
502208.
50GinandGeneva057.
202208.
60Vodka(except2208.
60.
91.
00.
00,2208.
60.
99.
00.
00)057.
202208.
60.
91.
00.
00Thoseincontainersoflessthan2litres(withalcoholcontentofmorethan45.
4%)085.
802208.
60.
99.
00.
00Thoseincontainersofmorethan2liters(withalcoholcontentofmorethan45.
4%)085.
802208.
70Liqueurs078.
652208.
90Others(except2208.
90.
48.
00.
11and2208.
90.
71.
00.
11)085.
802208.
90.
48.
00.
11Raki(incontainersof2litresorless051.
482208.
90.
71.
00.
11Raki(incontainersofmorethan2litres)051.
48Source:InformationprovidedbytheTurkishauthorities.
TableIII.
8Excisedutiesontobaccoproducts,2011HSCodeProductdescriptionTaxrate(%)Minimumspecificamount(TL)2402.
10.
00.
00.
11Cigarsthatcontaintobacco300.
13252402.
10.
00.
00.
12Cheroots300.
13252402.
10.
00.
00.
19Cigarillos300.
13252402.
20Cigarettesthatcontaintobacco630.
13252402.
90.
00.
00.
00OthersCigars,cherootsandcigarillosmadeofingredientsdeemedasatobacco300.
1325Cigarettesmadeofingredientsdeemedasatobacco630.
13252403.
10Smokingtobacco(whetherornotcontainingtobaccosubstitutesinanyproportion)(except2403.
10.
10.
00.
19and2403.
10.
90.
00.
19)630.
13252403.
10.
10.
00.
19Others(inimmediatepackingofanetcontentnotexceeding500g)630.
03422403.
10.
90.
00.
19Others(inimmediatepackingofanetcontentexceeding500g)630.
03422403.
99.
10.
00.
00Snuffandchewingtobacco630.
1325Source:InformationprovidedbytheTurkishauthorities.
AreducedVATrateof8%forcontractmanufacturingfortextileandready-to-wearworks,andforservicesprovidedinprivatecarehousesandresthomesenteredintoeffecton1June2007,andforrestaurantservicesonJanuary2008.
ThereducedVATrateof8%hasbeenineffectsince2007,onsimilaraccommodationservicesofferedbyhotels,motels,pensions,andholidayvillages,aswellastoothbrushes,contactlenses,spectaclelensesforglasses,certainexcavators,knittingmachines,etc.
TransactionseffectedbybanksandinsurancecompaniesareexemptfromVATunderArticle17ofLawNo.
3065.
Thus,banksandinsurerscannotrecoverVATpaidontheirinputs.
However,aBankingandInsuranceTransactionTax(BITT)isleviedat5%oncertainoperations,e.
g.
oninterestincomeandcommissions.
TransactionsinvolvingliquiditybillsissuedbytheCentralBankofTurkeyandmoney-markettradingtransactionsbetweenbanksandsubsidiariesaresubjectto1%BITT.
TheBITTonforeignexchangetransactionshasbeenatzerosince1May2008underCabinetDecreeNo.
2008/13459.
InternaltaxesmakeanimportantcontributiontoTurkey'spublicfinances.
TheTL59.
4billionraisedbytheSpecialConsumptionTaxin2010accountedfor24%oftheGovernment'staxrevenue,and18.
5%oftotalbudgetrevenues,inthatyear.
Similarly,theshareofVATintotaltaxreceiptswas30%(TL38.
6billioncollectedondomesticallyproducedgoodsandTL36.
2billiononimports).
TheGovernmentalsoreceivedTL3.
7billionfromtheBankingandInsuranceTransactionTax,TL4.
1billionfromaspecialtaxoncommunicationservices,andTL0.
64billionfromataxongamblingin2010.
Bycomparison,governmentrevenuefromcustomsdutiestotalledTL3.
2billion.
Importprohibitions,restrictions,andlicensingTurkeyprohibitstheimportoftenitemsbybroadproductcategory(TableIII.
9)Theproductcoverageremainsunchangedsince2003.
TurkeyjustifiestheserestrictionsunderthegeneralexceptionsandsecurityexceptionsprovidedbyGATTArticlesXXandXXI,i.
e.
thenecessitytoprotectpublicmoralsorhuman,animalorplantlifeorhealth;compliancewithdomesticlegislationorinternationalobligations;orforreasonsofnationalsecurity.
Variousgoodsaresubjecttolicensing(TableIII.
10).
Licensingisemployed,forexample,toenforcecompliancewithinternationalconventions(materialforthemanufactureofchemicalweapons,CITES);forreasonsofnationalsecurityorpublicsafety(explosives,radioactivesubstances,fertilizer,mapsandrelateditems);ortoensurethattheimportedgoodsareusedforthestatedpurpose(itemsforuseincivilaircraft,liquefiedpetroleumgases).
CertificatesissuedbytheMinistryofScience,IndustryandTechnologyformachinetools,variouselectricalhouseholdappliances,computers,transportequipment,telecommunicationsequipment,cameras,andhealth-relatedgoodsenforcearequirementonthedistributorstoprovideadequateafter-salesserviceandmaintainsufficientstocksofsparepartsandaccessories.
ImportedmotorvehiclesarealsosubjecttoapprovalbytheMinistryofScience,IndustryandTechnology,pursuanttoCommuniquéNo.
10/7,toensurethatthevehiclesaresuitableforTurkishhighways.
Aneligibilitycertificate,issuedbytheTurkishSugarAuthority(withoutanyimportrestriction),isrequiredfortheimportationofcertainsugarsubstitutes.
TableIII.
9Importprohibitions,2011DescriptionInvocationofWTOArticleDomestic/internationallegislationNarcotics,hashishandpreparedopium(2items)aHealth,IAb(ArticleXX:b,h)LawNo.
2313ontheControlofNarcotics,andtheInternationalAgreementonNarcoticsGoods(1961)Ozonedepletingsubstances(1item)a,cEnvironment(ArticleXX:b,d)CopenhagenAmendmenttoMontrealProtocolonSubstancesthatDepletetheOzoneLayer,ImportRegimeNo.
2011/14Colouringmatter(1item)Health(ArticleXX:b)LawNo.
1593ontheProtectionofPublicHealth;RegulationonSpecialConditionsofFoodstuffsandSuppliesandObjectsConcerningPublicHealth;ImportRegimeCommuniquéNo.
2007/15AddII(List)ScheduledchemicalweaponsinIandIIoftheConvention(4items)cEnvironment(ArticleXX:b,d)TheConventionontheProhibitionoftheDevelopment,Production,StockpilingandUseofChemicalWeaponsandtheirDestruction;ImportRegimeCommuniquéNo.
2011/17(ListI)MeasurementinstrumentsnotconformingtoTurkishlegalnorms(nonmetricordoublestandard)(6items)Compliancewithdomesticlaw(ArticleXX:d)LawNo.
3516onStandardsandAccordsArmsandammunition,propellantpowders,preparedexplosives,fuses,capsignitersdetonatorsa(3items)Security(ArticleXXI:b(i),(ii))LawonFirearms(No.
6136of1953);ImportRegimeCommuniquéNo.
2011/2dGamblinginstruments(exceptforspecifiedtourismpurposes)a(1item)Publicmorals(ArticleXX:a)LawNo.
1072onGamblingInstrumentslikeRoulette,Tilt,andPinballProductsmakingillegaluseofatrademark(allindustrialproducts)Compliancewithdomesticlaw;IAb(ArticleXX:d,h)Publicmorals(ArticleXX:a)ParisConvention1883annexedtotheLawof1930onAccessionto1925HagueAgreementonInternationalIndustrialProperty(1925);StatutoryDecreeNo.
556ontheProtectionofTrademarksCustomsLaw(No.
4458of1999)Soil,leaf,stem,straw,andnaturalmanureusedforagriculturalpurpose(excludingturfandperlitescultivatedincultureenvironment)Health(ArticleXX:b)RegulationonAgriculturalQuarantineSpawnofsilk-worm.
.
LawNo.
859onCultivationandSaleofSilk-wormandSilk-wormSpawn.
.
Notavailable.
aProhibitedexceptwhenimportedbyauthorizedgovernmentbodies.
bIA:Undertakeninpursuanceofobligationsunderintergovernmentalcommodityagreements.
cImportsprohibitedonlyfromnon-membersoftheinternationalagreements.
dFollowinganamendmenttorelatedlegislation,privatecompaniesarealsoauthorizedtoimportproductswithinthescopeofImportRegimeCommuniquéNo.
2011/2.
Source:WTOSecretariat,basedoninformationprovidedbytheTurkishauthorities.
Importsofold,second-hand,renovated,faultyandobsoletegoodsaresubjecttopermissionbytheMinistryofEconomy.
MeasuringandweighinginstrumentstobereleasedforfreecirculationinTurkeyaresubjecttocontrolbytheDirectorateGeneralofMeasuresandStandards(MinistryofScience,IndustryandTechnology);andcarryingmaterialscomprisingcinematographicandmusicalworksaresubjecttoregistrationbytheDirectorateofCopyrightandCinemawiththeaimofcombatingpiracy.
RestrictionsarisingfromTurkey'sSPSregulationsarediscussedbelow(section(3)(iii)).
TableIII.
10Importsrequiringalicence,2011DescriptionReasonforlicenceRadioactivity-relateditems(11items)Uraniumores,isotopes,nuclearreactors,X-raysImportsonlypermittedonapprovalbytheTurkishAtomicEnergyAuthority:toensurepatientsecurityagainsttheprobableharmfuleffectsofradioactivityTelecommunications,machinery,andrelateditems(74items)Electricalapparatusforlinetelegraphy,telephoneansweringmachines,radar,transmission,receptionapparatus,air-conditioningmachines,household-typeelectricalrefrigerators,clothesdryers,instantaneousgaswaterheaters,sewingmachinesofhouseholdtypes,machine-toolsfordrillingetc.
,vacuumcleaners,somephotocopyingmachines,certainmotorvehiclesImportsonlypermittedwithacertificateissuedbytheMinistryofScience,IndustryandTechnologytotheeffectthatafter-saleservicessuchasmaintenanceandrepairarewarrantedonaregionalbasisandthatmaintenanceservicetechniciansandspare-partstocksaresufficient:toensurethatimportsareinconformitywiththenationaltelecommunicationnetworkandtoprotectconsumersMotorvehicles(7items)Theroadtractorsforsemi-trailers(8701.
20),motorvehiclesforthetransportationoftenormorepersons(87.
02),motorcarsandothermotorvehiclesprincipallydesignedforthetransportofpersons(includingracingcarsandstationwagons)(87.
03),motorvehiclesfortransportofgoods(87.
04),special-purposemotorvehiclesotherthanthosedesignedforthetransportofpersonsorgoods(87.
05),motorcycles(includingmopeds)andcyclesfittedwithanauxiliarymotor,withorwithoutsidecars(87.
11),trailersandsemi-trailers(87.
16)ImportsonlypermittedwithaproformainvoicecertifiedbytheMinistryofScience,IndustryandTechnology:toensurethesuitabilityofimportedvehiclesforhighwaysFertilizers(5items)Animalorvegetablefertilizers,andmineralorchemicalfertilizersImportsonlypermittedonapprovalbytheMinistryofFood,AgricultureandLivestock:toavoiddamagetohealthofhumans,animalsortothelifecycleofplantsBanknotesandrelateditems(1item)Banknotes,securitiesArticle3/aofDecreeNo.
32onProtectionoftheValueoftheTurkishCurrency"ImportsofTurkishcurrencyandinstrumentsdenominatedinTurkishcurrencyshallbefree.
"Article4/aoftheaforementionedDecree"ImportationofforeignexchangetoTurkeyisfree"Importsofbanknotesarefree:toenssurethecontinuationofadministrativeorderrelatedtopreciousdocuments,e.
g.
shares,bondsExplosivesandrelateditems(14items)Technicalammoniumnitrate,preparedexplosives,somefuses,fireworks,someastronomicalinstrumentsImportsonlypermittedonapprovalbytheGeneralDirectorateofSecurityintheMinistryofInterior:toensurenationalsecurityandpublicsafetyProductsaffectingworkerhealth(12items),benzeneImportsonlypermittedonapprovalbytheInstituteofWorkers'HealthandSecurityintheMinistryofWorksandSocialSecurity:toprotectworkers'healthCivilaircraftrelateditems(81items)AwiderangeofitemsofakindusedoncivilaircraftImportsonlypermittedonapprovalbytheGeneralDirectorateofCivilAviationintheMinistryofTransportation:topreventtheuseofimportedgoodsinareasotherthancivilaviationMapsrelateditems(2items)Mapsandhydrographicorsimilarchartsofallkinds,anddigitalmapsandmapinformationrecordedonmagneticoropticalmediaImportsonlypermittedonapprovalbytheGeneralCommandofCartographyintheMinistryofDefence,andtheGeneralCommandofNavalForces:nationalsecurityItemsrelatedtothemanufactureofchemicalweapons(22items)AwiderangeofchemicalproductsusedintheproductionofweaponsImportsonlypermittedonapprovalbytheMinistryofEconomy:tocomplywiththeConventionontheProhibitionofChemicalWeaponsSomesugarsubstitutes(11items)Aspartam,saccharinEligibilitycertificate,issuedbytheTurkishSugarAuthoritywithoutanyimportrestriction,isrequiredforimportsofcertainsugarsubstitutes.
ControloftheseproductsattheimportstageisbyMinistryofFood,AgricultureandLivestockEndangeredspeciesofwildfaunaandfloraImportsonlypermittedonapprovalbytheMinistryofFood,AgricultureandLivestockortheMinistryofForestryandWaterAffairs:tocomplywiththeConventiononInternationalTradeinEndangeredSpeciesofWildFaunaandFlora(CITES)EnergyImportsareallowedonlybecompanieslicensedbyEMRA:toensureeffectiveoperationsinmarketactivitiesandtocomplywithrelevantEUDirectivesElectricityandnaturalgasPetroleumandliquefiedpetroleumgasImportsareallowedonlybycompanieslicensedbyEMRA:topreventtheunorthodoxuseofthoseitemsoutofpurposeandtoensurefuelqualitySource:WTOSecretariat,basedoninformationprovidedbytheTurkishauthorities;andWTOdocumentG/LIC/N/3/TUR/10,7September2010.
In2003,TurkeyimplementedaCertificateofConformityforImportationrequirementforalcoholicbeverages,i.
e.
spirits,wine,andbeer.
ThecertificatewasabolishedandreplacedbyaNotificationSystemforAlcoholicBeveragesinFebruary2008,whichissupervisedbytheTobaccoandAlcoholMarketRegulatoryAuthority.
HarmonizingitsimportpolicywiththeEU,Turkeyhasbeenapplyingimportquotasoncertaintextileandclothingproductssince1January1996.
Iftheexportingcountryagreestoabilateralunderstanding,thequotaisbalancedinresponsetoneeds.
Atpresent,TurkeyappliesquotastotextileandclothingproductsfromBelarusandtheDemocraticPeople'sRepublicofKorea,withwhichanagreementhasnotbeenreached,underthesinglecheckingsystem.
QuotarestrictionsappliedtoChina,Montenegro,Uzbekistan,andTurkmenistanhavebeenabolished.
CustomsvaluationTurkey'sbasicprovisionsoncustomsvaluationarecontainedinCustomsLawNo.
4458,Articles23to31.
AsstipulatedintheAgreementonImplementationofArticleVIIoftheGATT1994,theprimarybasisforcustomvalueisthetransactionvalue,i.
e.
thepriceactuallypaidorpayableforgoodssoldforexporttoTurkeyadjusted,asnecessary,inaccordancewiththeprovisionsofArticle8oftheAgreement.
ThehierarchyofalternatevaluationmethodsfollowsthesequentialorderlaiddownintheAgreement.
However,utilizingtheflexibilityaccordedtodevelopingcountriesinAnnexIII,paragraph3,Turkeyhasreservedtheright,indefinitely,nottoreversethedeductiveandcomputedvaluemethodsattherequestoftheimporter.
TheInterpretativeNotestotheAgreementareincorporatedinTurkey'slegislationthroughthebasicprovisionsofCustomsLawNo.
4458andArticles43through57,andAnnexes8and9,oftheCustomsRegulation.
Simplifiedproceduresareavailable,attherequestoftheimporter,todeterminethecustomsvalueofperishablegoods.
TurkeyimplementstheprovisionsoftheDecisionontheTreatmentofInterestChargesintheCustomsValueofGoodsthroughArticle28(c)andArticle28,paragraph2oftheCustomsLawandArticle52oftheCustomsRegulation.
TheDecisionontheValuationofCarrierMediaBearingSoftwareforData-ProcessingEquipmenthasbeenincludedintheCustomsLaw(Article29)andtheCustomsRegulation(Article54).
TurkeyhasappliedthesedecisionssinceFebruary2000,i.
e.
whentheCustomsLawenteredintoforce.
TherightofappealofdecisionsbythecustomsauthoritiesisgovernedbyTitleXII(Articles242-1and243-1)oftheCustomsLaw.
Anypersonmayappealdecisionsregardingcustomsduties,fines,andadministrativemeasurestoasuperiorauthorityortothesameauthoritythattookthedecisionifnosuperiorauthorityexists.
Fortaxissues,thefinaldecisionsofaregionaldirectorateortheMinistryofCustomsandTrademaybechallengedinthetaxcourts.
RulesoforiginThebasiclegalprovisionsonTurkey'snon-preferentialrulesoforiginaresetoutinCustomsLawNo.
4458,Articles17to21.
PursuanttotheCustomsUnionDecision,TurkeyhasbeenapplyingthesamerulesoforiginastheEUtothirdcountriessince1January1996.
Turkey'spreferentialtradeagreementssetoutpreferentialrulesoforigin,normallybasedonawhollyobtainedorsubstantialtransformationcriterion,withscopeforcumulation.
TurkeyhasbeenpartofthePan-EuropeanOriginCumulationSystemsince1January1999.
Thearrangementallowstheuseofanymaterialfromanycountrywithinthezone(EU,EFTA,andTurkey)toproduceagoodwhilstretainingpreferentialorigin.
ThisdiagonalcumulationsystemhasbeenextendedtotheFaroeIslandsandtoMediterraneancountriesparticipatingintheEuro-MediterraneanpartnershipthroughtheBarcelonaDeclarationof2004.
Thus,thePan-Euro-MediterraneanCumulationSystemoperatesonthesameprinciple.
Theapplicationofdiagonalcumulationrequirestheimplementationofidenticalrulesoforiginamongtheparties.
TurkeyisstillconductinganinternalevaluationregardingtheadoptionoftheEU'snewGSPlegislation,whichincludesrevisedrulesoforigin.
AccordingtoCustomsLawNo.
4458,economicoperatorsmayrequestadvanceassessments(BTI-BindingTariffInformation)forthedeterminationofimportandexporttaxes,thecalculationofdutydrawbackandimport-exportpaymentswithinthecontextofTurkey'sagriculturalpolicy,orfortheuseofcertificatesprovidingtariffororigininformationsubmittedforthepurposeofcustomsclearance.
TheassessmentsareissuedbytheMinistryofCustomsandTradeandauthorizedcustomsdirectoratesandmaybevalidforsixyears,providedtheinformationsubmittedbytheapplicantisaccurateandcomplete,andthedeclaredgoodscorrespondexactlytothedescriptionintheBTI.
TheassessmentsmayceasetobevalidifchangesaremadeintheTurkishCustomsTariffNomenclatureandtheinformationnolongerconformswithit,oramendmentsincompatiblewiththeBTIaremadeintheHarmonizedSystemNomenclatureanditsExplanatoryNotesbytheWCO.
SuchchangesaretobepublishedintheOfficialJournal,andtheholderoftheBTImustbenotified.
However,anoperatorwhohasconcludedbindingcontractsforthepurchaseorsaleofgoodsforwhichhehasaBTImaycontinuetouseitforanothersixmonthsfollowingthedateofpublicationornotification(oruntiltheendofthevalidityperiodforrelevantcertificates).
Anti-dumping,countervailingduty,andsafeguardregimesAnti-dumpingandcountervailingmeasuresThelegislativeframeworkfortheimpositionofanti-dumpingandcountervailingmeasureshasremainedunchangedsinceTurkeylastTradePoliciesReview.
Turkeyreviseditslegislationin1999toconformtotherelevantWTOAgreementsanditsCustomsUnionobligations.
Atpresent,theframeworkconsistsofLawNo.
4412/1999onthePreventionofUnfairCompetitioninImports;DecreeNo.
13482/1999onthePreventionofUnfairCompetitioninImports,amendedbyDecreeNo.
9840/2005;andtheRegulationonthePreventionofUnfairCompetitioninImports,amendedin2002and2006.
TheprovisionsoftheWTOAgreementonSubsidiesandCountervailingMeasuresandtheAgreementonImplementationofArticleVIoftheGATT1994(Anti-DumpingAgreement)wouldbeobservedincaseofanyinconsistencybetweendomesticlegislationandTurkey'smultilateralobligations.
TheDirectorateGeneraloftheMinistryofEconomyisinchargeofpreliminaryexamination,uponcomplaintorexofficio.
ShouldtheDirectorateGeneralconcludethataninvestigationisjustified,itwillformalizearecommendationtothiseffecttotheBoardofEvaluationofUnfairCompetitioninImportationwhich,ifitconcurs,willauthorizetheDirectorateGeneraltocarryouttheinvestigation.
TheBoard,headedbytheDirectorGeneralortheDeputy-DirectorGeneralofImports,comprisesrepresentativesoftheMinistryofFood,AgricultureandLivestock;theMinistryofScience,IndustryandTechnology;theMinistryofDevelopment;theMinistryofCustomsandTrade;theUnionofChambersandCommodityExchangesofTurkey;theUnionofChambersofAgriculture;andtherelevantheadofdepartmentintheDirectorateGeneralofImports.
TheBoardmaymakeproposalsinthecourseofaninvestigation,evaluatestheresults,andsubmitsdecisionsontheimpositionofprovisionaland/ordefinitivemeasurestotheStateMinisterinchargeofforeigntradeaffairs,forapproval.
Provisionalmeasuresmaybeimposednoearlierthan60daysfromtheinitiationofaninvestigation,andtheirdurationislimitedto4months.
Definitivemeasuresremaininforceforfiveyearsfromthedateofimpositionorfromtheconclusionofthemostrecentreviewcoveringbothdumpingandinjury.
Useofanti-dumpingmeasureshasbeenrisingovertheyearsinTurkey.
AsofAugust2011,Turkeyhad118anti-dumpingdutymeasuresinforce,comparedwith93attheendof2007,and27attheendof2002.
China(47)isthemainexporteraffectedbythesemeasures,followedbyIndonesia(10),IndiaandChineseTaipei(8each),andThailandandMalaysia(7each).
Anti-dumpingdutiesaffectmostlytextileandclothingitems,basemetalproducts,plasticsandrubberarticles,andarangeofothermanufacturedgoodssuchaslightersandpencils(TablesIII.
11andIII.
12).
Thedutiesareeitherexpressedinadvaloremratesorinspecificterms(US$/unit).
Until2008,Turkeyhadneverinitiatedorimposedacountervailingmeasure.
However,on22March2009,PETfilmsoriginatinginIndiabecamesubjecttocountervailingdutiesrangingfrom4.
25%to21.
61%.
SafeguardmeasuresTurkey'slegalframeworkfortheimpositionofsafeguardmeasuresconsistsofDecreeNo.
2004/7305(publishedintheOfficialGazetteNo.
25476on29May2004),amendedbyDecreeNo.
2007/12850(OfficialGazetteNo.
26721,5December2007),andtheRegulationonSafeguardMeasuresforImports(OfficialGazetteNo.
25486,8June2004).
TheamendmenttotheDecree,issuedafterTurkey'slastReview,aimsatmoreeffectiveapplicationofsafeguardmeasures,specificallybyextendingthescopetoimportsofpartsorcomponentsofaproductsubjecttoasafeguardmeasure,orpartsorcomponentsincorporatingthevalueaddedtobesafeguardedbytheimposedmeasure.
TableIII.
11Definitiveanti-dumpingmeasuresinforce,August2011Country/CustomsterritoryandproductCommuniquéImpositionoffinalmeasureDuty(as%ofc.
i.
f.
orspecific)BrazilFittings2006/2307.
09.
200620.
2%-23.
75%(c.
i.
f.
)orUS$400/tonneBulgariaFittings2006/2407.
09.
2006US$400/tonneMonoethyleneglycol(MEG)2010/1102.
05.
201020%CanadaOrientedstrandboard(OSB)2008/3418.
12.
200814.
93%China,P.
RPrefinishedengineeredlaminatedflooringWalltypesplitairconditioners2006/172006/2008.
07.
200626.
07.
200635%25%FittingsGranitePlywoodconsistingsolelyofsheetsofwood(upto6mmthickness)V.
belts2006/232006/252006/282007/407.
09.
200614.
09.
200620.
10.
200631.
03.
2007US$800/tonneUS$90/tonneUS$240/m3US$5.
04/kgWovenfabricsofsyntheticandartificialstaplefibresRefractorybricksofchromite,magnesiteorchromemagnesite;otherarticles-containingmagnesite,dolomiteorchromite2007/102007/1119.
06.
200701.
09.
200787%US$145/tonneWallclocks(battery,accumulatorormainpowered)PartsoflighterPocketlighters,gasfueled,non-refillablePocketlighters,gasfueled,refillablewithelectricalignitionsystem&partsoflightersLaminatedflooringWovenfabricsofsyntheticfilamentyarnBlankets&longpilefabricsofsyntheticfibresandothersofman-madefibresforblankets2007/172008/162008/162008/162008/242008/252008/2724.
10.
200701.
05.
200801.
05.
200801.
05.
200830.
07.
200801.
08.
200801.
08.
2008US$2.
10/pieceUS$0.
02/pieceUS$0.
05/pieceUS$0.
05/pieceUS$1.
60-2.
40/m270.
44%US$4/kgTexturedyarnofnylonorotherpolyamides,measuringpersingleyarnmorethan50texAluminiumoffsetprintingplatesTarpaulinmadeofpolyethylene/polypropylenePencilswithleadsofgraphite,etc.
HookandloopPolyestertexturedyarnYarnofman-madeorsyntheticorartificialstaplefibresCertainfinishedorsemi-finishedartificialleatherKnivesforelectromechanicaldomestickitchenappliancesCylindricaldoorlocks(excludingelectromechanicals)&otherdoorlocks(excludingelectromechanicals)&onlycylinderandcasefordoorlocksStud-linkofironorsteel&weldedlinkchainofironorsteel2008/312008/322008/332008/352008/362008/412009/12009/122009/172009/212009/2505.
09.
200815.
11.
200815.
11.
200818.
12.
200818.
12.
200831.
12.
200812.
01.
200918.
04.
200918.
06.
200930.
07.
200925.
07.
200937.
40%US$2.
65/kgUS$1.
06/kgUS$3.
16/144piecesUS$3.
86/kgUS$268-351/tonneUS$0.
49-0.
80/kgUS$1.
9/kgUS$20.
85/kgUS$0.
74-1.
77/pieceUS$1,069/tonneBicycletyresandbicycletubes2009/2905.
08.
200933%-50%Motorcycletyresandmotorcycletubes2009/3005.
08.
200937%-100%Certaintypesofnewpneumatictires,ofrubber2011/821.
06.
201160%Polyestersyntheticstaple2009/3305.
10.
2009US$0.
21/kgBallpointpens2009/3512.
11.
2009US$0.
066/pieceCertaintubeorpipefittingsofronorsteel2010/222.
01.
2010US$663/tonneCertainmade-uptextilearticlesandfabricsmadeofartificialorsyntheticsfibres2010/811.
04.
2010US$70.
44/kgGlasslid/cover2010/1223.
05.
2010US$0.
91/kgTableIII.
11(cont'd)Articulatedlinkchainandpartsthereof2010/1323.
05.
2010US$1200/tonneBabycarriages2010/1423.
05.
2010US$12/pieceFancoil2010/1631.
05.
20100.
3427%Hingesofbasemetal&hat-racks,hat-pegs,bracketsandsimilarfixturesofbasemetal&basemetalmountings,fittingsandsimilararticlessuitableforfurniture2010/1820.
07.
2010US$1.
64-0.
75/kgMetalizedyarn2010/2121.
07.
2010US$2.
2/kgRopesandcables(includinglockedcoilropes)2010/2221.
07.
2010US$1/kgRefillablepocketflintlighters2010/2731.
10.
2010US$0.
05/pieceTextilefabrics,impregnatedwithpolyurethane-leather&textilefabrics,impregnatedwithpolyurethane-others&textilefabrics,impregnated,coated,covered,orlaminatedwithpolyurethane–leathersubstitute2010/2831.
10.
2010US$1-2.
2/kgSlidefasteners2010/2930.
10.
2010US$3/kgGlassfibrereinforcementmaterials2011/131.
12.
201020.
2%-23.
75%(c.
i.
f.
)Toolsfordrilling&toolsformilling2011/231.
12.
2010US$6-10/kgPentaerythritol2011/603.
05.
2010US$270/tonneSkidchainormotorvehiclesofironorsteel2011/703.
05.
2011US$1,500/tonneCorewireofbasemetal2011/1628.
07.
201121.
12%-28.
87%ChineseTaipeiPolyestertexturedyarn2006/3121.
12.
20069.
9-28.
6%Hookandloop2008/3618.
12.
2008US$1.
83/kgPolyestersyntheticstaple2009/1318.
04.
20046.
4%-20.
1%Bicycletyresandbicycletubes2010/2017.
07.
201030%-40%Motorcycletyresandmotorcycletubes2010/2017.
07.
20106%-21%Metalizedyarn2010/2121.
07.
2010US$2.
2/kgSaudiArabiaPolyestersyntheticstapleMonoethyleneglycol2007/132010/1101.
09.
200702.
05.
2010US$0,11/kg4%-20%GermanyPolyvinylchloride2009/1825.
06.
2009US$25-45/tonneHongKong,ChinaGlasslid/cover2010/1223.
05.
2010US$0.
91/kgIndiaFittingsPolyestertexturedyarnV-beltsYarnofmanmadeorsyntheticorartificialstaplefibres2006/242006/312007/42009/107.
09.
200621.
12.
200631.
03.
200712.
01.
2009US$305-400/tonne6.
8-20.
3%US$3.
5/kgUS$0.
29-0.
39/kgPolyestersyntheticstaple2009/1318.
04.
200916,5%-23,9%Bicycletyresandbicycletubes2009/2905.
08.
200920%;64%Metalizedyarn2010/2121.
07.
2010US$2.
2/kgTableIII.
11(cont'd)IndonesiaPrefinishedengineeredlaminatedflooringFittingsPolyestersyntheticstaplefibresPolyestertexturedyarnYarnofman-madeorsyntheticorartificialstaplefibresBicycletyres&bicycletubesMotorcycletyres&motorcycletubes2006/172006/242006/262008/412009/12009/272009/2808.
07.
200607.
09.
200608.
09.
200631.
12.
200812.
01.
200901.
08.
200901.
08.
200925%US$253-400/tonne6.
2%-12%US$48-240/tonneUS$0-0.
40/kg17.
8%;29.
6%-33%0%;19.
6%-29%Glasslid/cover2010/1223.
05.
2010US$0.
14-0.
50/kgItalyPolyvinylchloride2009/1825.
06.
2009US$25-45/tonneKorea,Rep.
ofPolyesterflatyarns2006/1218.
05.
20065.
2%-10.
9%Polyestersyntheticstaplefibres2006/2608.
09.
200610%(c.
i.
f.
)Polyestertexturedyarn2006/3121.
12.
200633.
7%(c.
i.
f.
)Wovenfabricsofsyntheticfilamentyarn2008/2501.
08.
200814.
64%-40%Metallizedyarn2010/2121.
07.
2010US$2.
2/kgKuwaitMonoethyleneglycol(meg)2010/1102.
05.
20106%-20%MalaysiaWovenfabricsofsyntheticfilamentyarnPolyestertexturedyarn2008/252008/4101.
08.
200831.
12.
20087.
76%-15.
93%US$276/tonneVulcanizedrubberthreadandcord2009/1418.
06.
200911.
6%-16.
9%Bicycletyresandbicycletubes2009/271.
08.
200929.
6%-33%;5.
633%Motorcycletyresandmotorcycletubes2009/2801.
08.
200919.
6%-29.
6%;19.
6%-29.
6RomaniaPolyvinylchloride2009/1825.
06.
2009US$25-45/tonneRussianFederationCooperwirerod2011/1409.
11.
20053%Ropesandcables(includinglockedcoilropes)2010/2221.
07.
2010US$0.
5/kgSriLankaBicycletyres2010/2017.
07.
201050%Bicycletubes2010/2017.
07.
201044%ThailandFittings2006/2407.
09.
2006US$147-400/tonneWovenfabricsofsyntheticfilamentyarnPolyestertexturedyarn2008/252008/411.
08.
200831.
12.
20088.
67%-30.
93%US$198-300/tonnePolyestersyntheticstaplefibres2009/1318.
04.
200915.
8%-22%Bicycletyresandbicycletubes2009/2905.
08.
2009100%;100%Motorcycletyresandmotorcycletubes2009/3005.
08.
200968%;100%TableIII.
11(cont'd)UkraineWireofrefinedcopper2011/1408.
06.
20066.
9%UnitedStatesOrientedstrandboard(OSB)2008/3418.
12.
200824.
10%Polyvinylchloride2009/1825.
06.
2009US$45/tonneVietNamV-beltsTarpaulinmadeofpolyethylene/polypropylene2007/42008/3331.
03.
200715.
11.
2008US$4.
55/kgUS$1.
16/kgBicycletyres2010/2017.
07.
201030%Bicycletubes2010/2017.
07.
201044%Motorcycletyres2010/2017.
07.
201029%Motorcycletubes2010/2017.
07.
201049%Source:InformationprovidedbytheTurkishauthorities.
TableIII.
12Definitiveanti-circumventionmeasuresinforce,May2011Country/CustomsterritoryandproductCommuniquéImpositionoffinalmeasureDutyChina,P.
R.
Standardwire,ropesandcables2006/3230December2006US$1/kgChineseTaipeiHingesofbasemetal&hat-racks,hat-pegs,bracketsandsimilarfixturesofbasemetal&basemountings,fittingsandsimilararticlessuitableforfurniture2008/2927August2008US$1.
64/kgUS$1.
64/kgUS$0.
75/kgIndonesiaHingesofbasemetal&hat-racks,hat-pegs,bracketsandsimilarfixturesofbasemetal&basemountings,fittingsandsimilararticlessuitableforfurniture2008/2927August2008US$1.
64/kgUS$1.
64/kgUS$0.
75/kgOnlywall-typesplitair-conditioners&onlyoutdoorunitofwall-typesplitair-conditioners(exceptforoutdoorunitofVRFsystems)&onlyindoorunitofwall-typesplitair-conditioners2011/331January201125%Korea,Rep.
ofWovenfabricsofsyntheticfilamentyarn2008/2501August200814.
64%-40%MalaysiaHingesofbasemetal&hat-racks,hat-pegs,bracketsandsimilarfixturesofbasemetal&basemountings,fittingsandsimilararticlessuitableforfurniture2008/2927August2008US$1.
64/kgUS$1.
64/kgUS$0.
75/kgOnlywall-typesplitair-conditioners&onlyoutdoorunitofwall-typesplitair-conditioners(exceptforoutdoorunitofVRFsystems)&onlyindoorunitofwall-typesplitair-conditioners2009/628February20090-25%PakistanOnlywall-typesplitair-conditioners&onlyoutdoorunitofwall-typesplitair-conditioners(exceptforoutdoorunitofVRFsystems)&onlyindoorunitofwall-typesplitair-conditioners2011/331January201125%TableIII.
12(cont'd)RussianFederationStandardwire,ropesandcables2006/3230December2006US$0.
5/kgThailandPencilswithleadsofgraphiteandpencilswithleadsofcrayonsencasedinarigidsheath2007/514April2007US$3.
16/144pieceThePhilippinesOnlywall-typesplitair-conditioners&onlyoutdoorunitofwall-typesplitair-conditioners(exceptforoutdoorunitofVRFsystems)&onlyindoorunitofwall-typesplitair-conditionersWovenfabricsofsyntheticfilamentyarn2011/32006/3031January201118November.
200625%70.
44%VietNamOnlywall-typesplitair-conditioners&onlyoutdoorunitofwall-typesplitair-conditioners(exceptforoutdoorunitofVRFsystems)&onlyindoorunitofwall-typesplitair-conditionersPocketlighters,gasfueled,non-refillable&refillablepocketflintlighters&pocketlighters,gasfueled,refillablewithelectricalignitionsystem&partsoflighters2011/32008/1731January201128April200825%US$0.
05/pieceUS$0.
05/pieceUS$0.
05/pieceUS$0.
02/pieceSource:InformationprovidedbytheTurkishauthorities.
Theauthoritytopropose,apply,andmonitorsafeguardmeasuresrestswiththeMinistryofEconomy.
TheBoardfortheEvaluationofSafeguardMeasuresforImportsdecides,interalia,whethertoinitiateaninvestigation;toadopt,review,extend,modifyorabolishanyprovisionalordefinitivesafeguardmeasure;andtodeterminetheform,extent,anddurationofsuchmeasures.
Thedurationofasafeguardmeasure,includinganyprovisionalmeasure,maynotexceedfouryearsunlessthemeasureisextended.
Thetotalperiodofapplicationofasafeguardmeasuremustnotexceedtenyears.
SinceitslastReview,Turkeyhasextendedthesafeguardmeasuresinitiallyimposedin2006onimportsfromallcountriesofsteamirons,vacuumcleaners,footwear,andmotorcycles(2007).
Innewcases,Turkeyimposeddefinitivesafeguardmeasuresonallimportsofcertainelectricalappliancesandcottonyarnin2008,andonmatchesin2009(TableIII.
13).
Ontheotherhand,safeguardsonactivatedearthsandclays,certainvoltmeters,ammeters,andsaltwerenotextendedwhentheylapsedin2008and2009.
Amongthemostrecentdevelopments,Turkeyconductedasafeguardinvestigationagainstimportsofpolyethyleneterephthalate,andthemeasurewillenterintoeffectuponpublicationofapprovalbytheCabinetofMinisters,afteralllegalprocedureshavebeencompleted.
Turkeyhasalsoinitiatedinvestigationstoextenditssafeguardmeasuresonimportsofspectacleframes;travelgoods,handbagsandsimilarcontainers;andcottonyarn.
Provisionalsafeguardmeasuresareinforcewhiletheinvestigationscontinue.
TableIII.
13Definitivesafeguardmeasuresinforce,2011ProductDateofimpositionofdefinitivemeasureCertainelectricalappliances10/8/2008Cottonyarn11/8/2008Matches6/12/2009Vacuumcleaners13/2/2010Steamsmoothingirons13/2/2010Motorcycles13/2/2010Footwear13/2/2010Source:InformationprovidedbytheTurkishauthorities.
TurkeyhasimplementedanimportsurveillancesystembasedonCouncilofMinisters'DecisionNo.
2004/7304;theMinistryofEconomyissuesaSurveillanceDocument.
Thepurposeofthesystemistomonitorandcollectspecificdata.
Forcertainproducts,thesurveillancesystemisprice-based;thus,onlyproductsimportedatpricesbelowcertainc.
i.
f.
valuesarebeingmonitored.
MeasuresDirectlyAffectingExportsExportproceduresandrequirementsRegistrationanddocumentationrequirementsforexportersaresimilartothoseapplicabletoimporters(section(1)(i)above).
Inaddition,exportersmustregisterwiththeExportersUnionandtheirlocalChamberofCommerce.
Afeerangingfrom0.
02%to0.
1%ofthef.
o.
b.
valueofexportsischargedasaservicecommission.
Thelevelofthefeeissetbythegeneralassembliesoftherespectiveorganizations,i.
e.
bytheexportersthemselves.
Registrationrequirementsremaininforcefor(i)exportsofgoodseligibleforpremiumdeductionundertheSupportandPriceStabilizationFund(SPSF);(ii)goodspaidforbytheSPSF;(iii)exportswithintheframeworkofspecialaccountsforthepaymentofinstalmentsoncreditsfortheconductofbartertrade;(iv)exportsundertheNaturalGasAgreementbetweenTurkeyandtheRussianFederation;(v)exportsofgoodsunderrestrictionsapplicabletocountriesthatareimplementingquantitativerestrictionsonTurkishexports(nosuchcasesatpresent);(vi)exportstocountriessubjecttoUNeconomicsanctionsresolutions;(vii)goodscertifiedunderthe"FundamentalsandImplementationofOrganicFarming"regulation;(viii)exportofgoodscoveredbytheViennaAgreementregardingtheprotectionoftheozonelayer,aswellastherelatedprotocolsandamendments;(ix)exportsofunprocessedoliveoilandprocessedbulkorbarrelledoliveoil,liquoriceroot,rawmeerschaum,andsamplepipe;and(x)exportsofunprocessedolivesinbags,sacksorboxes,livestock,bulkconicpepper,rawolive(unfermented),scrapofcopperandzinc,marble,gherkin,andcement.
Registrationisonacase-by-casebasisatthetimeofeachexporttransaction.
TheMinistryofCustomsandTrademayauthorizeexporterswhofulfilcertainconditionstoissueinvoicedeclarationsandEUR-MEDinvoicedeclarations.
TheMinistryofCustomsandTrademayauthorizeexportersofgoodsdestinedtotheEUmarketandcoveredbytheCustomsUnionDecisiontoissuemovementcertificates(A.
TR)withoutsubmittingthemtotherelevantauthoritiesforendorsement.
Suchauthorizationmaybegrantedtoexportersmakingfrequentconsignments,providedtheexportershavenotbeeninvolvedinanyseriousorrepeatedoffenceagainstcustomsortaxlegislation,andthattheymaintainrecordsthatcanbecheckedbythecustomsauthorities.
Exporttaxes,fees,andchargesTurkeyappliedexporttaxesonrawskins(atarateofUS$0.
5perkg),unshelledhazelnuts(US$0.
04perkg),andshelledhazelnuts(US$0.
08perkg).
TherevenuefromthesetaxesischannelledintotheSupportandPriceStabilizationFund.
ExportrestrictionsTurkeyprohibitsexportsof12items(bybroadcategory,mostlyagriculturalgoods)forenvironmental,healthorculturalreasons(TableIII.
14).
AnexportprohibitiononangoragoatswasreplacedbyexportlicensinginSeptember2009.
Atpresent,licencesarerequiredforexportsof24categoriesofproducts(TableIII.
15),includingcertainagriculturalandfishitems.
Licensingisalsousedtoenforceobligationsunderinternationalagreementsandconventions,notablyfornarcotics,hazardouswastes,nuclearandmissiletechnology,anddual-usegoodsandtechnologies.
Electricitymayonlybeexportedbyenterprisesholdingwholesalelicences.
Inaddition,approvalfromtheMinistryofEnergyandNaturalResourcesisrequiredforexportsofelectricitytocountrieswithwhichinterconnectionsarenotbasedonasynchronousparalleloperatingregime.
Petroleumproducts(petrol,diesel,andLPG)mayonlybeexportedbylicencedrefineriesanddistributors.
TheMinistryofEconomyissuedarevisedCommuniquéofForeignTradeinEndangeredSpeciesofWildFaunaandFlorainFebruary2011,underwhichtheMinistryofForestryandWaterAffairsissuesCITEScertificatesforexportsandre-exportsofeachspecielistedintheCommuniqué.
Exportersofendangeredspeciesofwildfaunaandfloramustattachthecertificates,validforsixmonths,totheircustomsdeclarationforms.
TheDecreeontheRegimeofTechnicalRegulationsandStandardizationforForeignTradeempowerstheGovernmenttomakeagriculturalgoodsforexportsubjecttoqualitycontrol,andtodeterminethetypeofqualitycontrolapplicabletosuchgoods.
TheproductsareexportedwithcontrolcertificatesissuedbytheregionalbranchesoftheMinistryofEconomy,indicatingconformitywithestablishedstandards.
Some150agriculturalproducts(attheHS12-digitlevel),includingcitrusfruit,apples,groundnuts,certainedibleoils,driedapricots,driedfigs,andsomehazelnuts,aresubjecttocompulsoryexportcontrolsforqualitypurposes.
TableIII.
14Exportprohibitions,2011DescriptionofitemInvocationofWTOArticleDomestic/InternationallawAllgameandwildanimals(exceptspeciesonthelistof'exportsrequiringalicence',aliveormeatand/orpiecesandgarmentsthereof(Ch.
1and2)aEnvironment(ArticleXX:g)DecisionoftheCouncilofMinisters(No.
234of8March1990)Naturalflowerbulbs(1item)Environment(ArticleXX:g)ExportRegimeDecree(No.
7623of22December1995)TobaccoseedsandtobaccoseedlingsImplementingRegulationonMethodsandEssentialsConcerningTobaccoProductionandProcessingandInternalandExternalTrade(OfficialGazettedated10/07/2010,numbered27637)basedontheLawNo.
4733,dated09/01/2002(amendedbyLawNo.
5752dated15/04/2008)Dates"Phoenixtheophrasticrenter"(1item)Environment(ArticleXX:g)ExportRegimeDecree(No.
7623of22December1995)Indianhemp(1item)aHealth(ArticleXX:b)LawontheControlsofNarcotics(No.
2313of24June1933)Pterocaryacarpinifolia(1item)Environment(ArticleXX:g)ExportRegimeDecree(No.
7623of22December1995)Liquidamberorientalis(1item)Environment(ArticleXX:g)ExportRegimeDecree(No.
7623of22December1995)Plantsofolive,fig(exceptspeciescertificateddomesticallythatareregisteredandpublishedintheNationalSpeciesList),hazelnut,pistachio,andgrapevine(sultanasseedless)Environment(ArticleXX:g)ExportRegimeDecree(No.
7623of22December1995)Walnut,mulberry,cherry,pear,plum,badger,ash,elm,andlimeinlogs,intimber,inplank,andinsketch(Ch.
44)aEnvironment(ArticleXX:g)DecisionoftheCouncilofMinisters(No.
8186of24April1974)WoodEnvironment(ArticleXX:g)ExportRegimeDecree(No.
7623of22December1995)Antiquesandarchaeologicalworks(1item)aNationaltreasures(ArticleXX:f)LawonAncientWorksofArt(No.
2863of21July1983)Sahlep(powderandofallsorts).
.
ExportRegimeDecree(No.
7623of22December1995).
.
Notavailable.
aExportprohibitedin1993.
Source:WTOSecretariat,basedoninformationprovidedbytheTurkishauthorities.
TableIII.
15Exportsrequiringalicence,2011DescriptionofitemsAuthorityresponsibleLegalbasisAngoragoats(1item)MinistryofFood,AgricultureandLivestockLawontheAmeliorationofAnimals(No.
4631of10March2001)OpiumandpoppyseedsMinistryofHealthLawNo.
2313of24June1933AddictiveandpsychotropicsubstancesMinistryofHealthLawNo.
2313of24June1933;AddictivesubstancesstatedinthePsychotropicAgreementdated1961,revisedin1972;PsychotropicAgreementdated1971;andUNAgreement(dated1988)toprohibitaddictivesubstancesProductssubjecttoBaselConventionontheControlofTransboundaryMovementsofHazardousWastesandtheirDisposalMinistryofForestryandWaterAffairsDecreeNo.
94/5419of7March1994TableIII.
15(cont'd)Livingornon-livingboars,wolves,jackals,foxes,martens,badgers,snakes,turtles,lizards,andidentifiablepartsofandclothingproducedfromthemMinistryofForestryandWaterAffairsDecreeNo.
645regardingtheOrganizationandFunctionsoftheMinistryofForestryandWaterAffairsFertilizers(excludingchemicalfertilizers)MinistryofFood,AgricultureandLivestockDecreesNo.
2/1771of27December1924;andNo.
6/4090of19December1964Seeds(exceptforest-treeseeds)MinistryofFood,AgricultureandLivestockLawNo.
5553,of31October2006,andCommuniquéNo.
96/31of19September1996Fishingproductssubjectto"prohibitionderivedfromtheprinciplesoffishery"(includingleeches)MinistryofFood,AgricultureandLivestockLawNo.
1380of22March1971(asamendedbyLawNo.
3288of28May1986)RacehorsesMinistryofFood,AgricultureandLivestockLawontheAmeliorationofAnimals(No.
4631of10March2001)FeedscoveredbytheFeedLawMinistryofFood,AgricultureandLivestockLawNo.
1734of29May1973PharmaceuticalsforveterinarypurposesMinistryofFood,AgricultureandLivestockLawNo.
3490ExportofnaturalflowerbulbssubjecttoquotaoranyotherkindrestrictionsMinistryofFood,AgricultureandLivestockDecreeNo.
95/7623of22December1995LiveanimalskeptforstudMinistryofFood,AgricultureandLivestockLawontheAmeliorationofAnimals(No.
4631of10March2001)Naturalmushrooms(onlyexportstoEUcountries)MinistryofFood,AgricultureandLivestockDecreeNo.
95/7623of22December1995Livetunafish(Thynusthunnus)MinistryofFood,AgricultureandLivestockDecreeNo.
95/7623of22December1995SubstanceslistedintheannexestotheWassenaarArrangementandtheAustralianGroupMinistryofEconomyWassenaarArrangementlistforDual-useGoodsandTechnologiesandintheAustralianGroupChemicalPrecursorsSugarTheTurkishSugarAuthorityDecreeNo.
2007/9of17August2007TechnologyandequipmentusedfornuclearpurposesTurkishAtomicEnergyAuthorityReg.
No.
26642of13September2007GoodscoveredbytheMissileTechnologyControllingRegimeMinistryofNationalDefenceDecreeNo.
5201of29June2004TobaccoleafandtobaccowasteTobaccoandAlcoholMarketRegulatoryAuthorityLawNo.
4733of9January2002Implementsofwarthataresubjecttocontrol,militaryexplodersandsparepartsandrelatedtechnologiesMinistryofNationalDefenceLawNo.
5201of2July2007ForesttreeseedsandotherbreedingmaterialsMinistryofForestryandWaterAffairsDecreeNo.
645regardingtheOrganizationandFunctionsoftheMinistryofForestryandWaterAffairsOlivetreesapling(speciescertificateddomesticallywhichareregisteredandpublishedintheNationalSpeciesList)MinistryofFood,AgricultureandLivestockExportRegimeDecree(No.
7623of22December1995)ExplosivematerialswithinthecontextofRegulatoryStatute87/12028MinistryofInternalAffairsLawNo.
6551of18May1955,RegulatoryStatute87/12028and2001/2443Source:InformationprovidedbytheTurkishauthorities.
Exportsubsidies,finance,assistance,andpromotionExportersbenefitfromdutyandtaxconcessions(seesections(1)(iv)and(vi)).
Exportersof20agriculturalcommoditiesorprocessedagriculturalproductsareeligibleforexportsubsidiesundertheExportSubsidyProgrammeforAgriculturalProducts,establishedtodevelopTurkey'sexportpotentialinprocessedagriculturalproducts(ChapterIV,TableAIV.
2).
ThisprogrammeisfinancedfromtheSupportandPriceStabilizationFund.
TheTurkEximbank,astate-ownedbankestablishedin1987,istheonlyofficialexportcreditagencyinTurkey.
TheBankoperatesanumberofexportcredit,guarantee,andinsuranceschemes.
ThemainobjectivesoftheBankaretoincreasethevolumeofTurkishexports,developnewexportmarkets,increasetheshareofTurkishexportersininternationaltrade,diversifyexportsofgoodsandservices,andsupportTurkishexporters,investors,andoverseascontractors.
TurkEximbankpresentsitsannualprogrammestotheSupremeAdvisoryandCreditGuidanceCommittee,chairedbytheStateMinisterinchargeoftheBank'sactivities.
TheCommitteesetsupperlimitsforcredits,guarantees,andinsurancetransactionstobeeffectedbytheTurkEximbank,eitherasagrossamountorbycountry,sector,andprogramme.
TheBankfundsitsactivitiesmostlybyborrowingfromcommercialbanksortappingtheinternationalfinancialmarkets,orthroughcapitalinjectionsfromtheTurkishTreasury.
TurkEximbankprovidedintotalUS$8.
9billioninexportfinancingsupportandpurecoverin2010,representingfinancialsupporttoalmost8%ofTurkey'sexportsinthatyear.
TurkEximbanksupportsexporters,companiesengaginginforeign-currency-earningservices,andoverseasinvestorsandcontractorswithshort-,medium-,andlong-termexportcreditprogrammes(TableAIII.
7).
Moreover,exportreceivablesarediscountedtopromotesalesanddeferredpaymentconditions,andtoincreaseexportvolume.
Short-termfinancialassistanceismadeavailabletoexportersatthepre-andpost-shipmentstageswithatermupto540daysforloansinTurkishliraorforeigncurrency.
CreditsareallocatedthroughthecommercialbanksinTurkeyordirectlybyTurkEximbank.
In2010,55%ofTurkEximbank'sshort-termcreditswereextendedviaintermediarycommercialbanksand45%wereprovideddirectly.
Attheendof2010,short-termexportcreditfacilitiesaccountedfor97%ofTurkEximbank'stotalloanportfolio.
TurkEximbank'smedium-andlong-termfinancialsupportprogrammeshavebeendevelopedmainlyfortheexportofcapitalgoodsandturnkeyinvestmentprojectstobeundertakenbyTurkishandTurkey-basedcontractors.
ThemajorityoftheseprogrammesinvolveextendingfinancingfacilitiestobuyersoutsideofTurkeyforthepurchaseofTurkishgoodsand/orservices.
Dependingontheriskclassificationofthetypeofloanorthecountryoftheborrower,asovereignguaranteeorreputablebankguaranteeinfavourofTurkEximbankhasbeenapre-requisiteformanymedium-andlong-termfinancialoperations,e.
g.
projectfinanceloans.
InsuranceagainstcommercialandpoliticalrisksisalsoofferedbyTurkEximbank(TableIII.
16).
Commercialrisk-basedlossesareindemnifiedbytheBankfromitsownresourceswhilepoliticalrisks,inprinciple,arebackedbytheGovernment.
However,TurkEximbankhasneversubmittedanyindemnificationrequestforpoliticallossestotheTurkishTreasury.
Moreover,short-termpoliticalriskshavealsobeencededtoareinsurancepanel(withincertaincountrylimits)since2000.
Premiumratesforinsuranceprogrammesrangefrom0.
08%to4%(comprehensiveforcommercialandpoliticalrisks),orfrom0.
02%to4%forpoliticalrisksonly,andvaryaccordingtotheriskcategoryofthebuyer'scountry,thepaymentterm,andthestatusofthebuyer(private,publicorsovereign).
TableIII.
16Keyfeaturesoftheexportinsuranceprogrammes,2011ProgrammeCoverageShort-TermExportCreditInsuranceProgrammeUpto90%oflossesincurredasaresultofcommercialandpoliticalrisksonshipmentsmadebyanexporterwithinoneyear,withpaymentsdeferredupto360days.
Comprehensivecoverisavailable,includingpre-shipmentperiod(180daysmaximum);post-shipmentcoveriscompulsorywhereapplicable.
Premiumratesvaryaccordingto,interalia,theriskcategoryofthebuyer'scountry,thelegalstatusofthebuyer,andtherelevantpaymenttermandmaturity.
SpecificExportCreditInsurancePost-shipmentPoliticalRiskProgrammeCoveragainstpoliticalrisksinthepost-shipmentperiodforreceivablesfromsalesoncredittermsrelatingtotheexportofcapitalandsemi-capitalgoodswithatleast60%domesticcontent.
Coverisavailableupto90%with15%ofthecontractvaluetobepaidinadvance.
Premiumratesarespecificallycalculatedtakingintoaccounttheabove-mentionedcriteria.
SpecificExportCreditInsuranceComprehensivePost-ShipmentRiskProgrammeSameasSpecificExportCreditInsurancePost-shipmentPoliticalRisk,exceptthatbothpoliticalandcommercialrisksarecovered.
InsuranceProgrammeforUnfairCallingofBondsCoverappliestobidbonds,advancepaymentandperformancebondforTurkishcontractorsinordertoeliminatetheriskofunfaircallingofbonds.
BondsareissuedbyabankinfavourofthepublicbuyerbasedintheborrowingcountriesforprojectsundertakenbyTurkishcontractorsorsubcontractors.
TurkEximbankisresponsibleforidentifyingtheTurkishcontractor,whereacallismadeunderthebondbyreasonofeventsorcircumstancesbeyondthecontractor'scontrol.
Source:WTOSecretariat,basedoninformationprovidedbytheTurkishauthorities.
PursuanttoArticle12oftheCustomsUnionDecision,TurkeyhasbeenharmonizingitslegislationwiththatoftheEUwithrespecttoofficiallysupportedexportcredits.
Withinthisframework,theOECDConsensusprinciplesonofficiallysupportedcreditswitharepaymenttermoftwoormoreyearshavebeenadopted.
TurkEximbankisafullmemberoftheBerneUnion(theinternationalassociationofexportcreditinsurers),andrepresentsTurkeyintheGrouponExportCreditsandCreditGuarantees(ECG)andintheParticipantsGroup(PG)oftheOECDTradeCommittee.
KOSGEB,apublicagencyforthedevelopmentofSMEs,wasestablishedin1990asanon-profitorganizationaffiliatedtotheMinistryofScience,IndustryandTechnology.
KOSGEBisfinancedunderthegeneralbudget.
KOSGEBassistsSMEsin,interalia,cofinancingbusinesstripsabroad(upto50%ofthecosts,maximumTL10,000),creatingownbrands,andprovidingexportpromotioncredits.
KOSGEBalsoprovidesbusiness-matchingmodelstoSMEs,andadatabasetobringtogetherlocalandforeignSMEs.
Business-matchingopportunitiesareassessedbyaqualifiedoperatorcompany.
FurthertoDecreeLawNo.
637concerningtheOrganizationandDutiesoftheMinistryofEconomy,publishedinJune2011,theformerExportPromotionCentre(IGEME)hasbeenabolishedandincorporatedintotheMinistryofEconomy.
MeasuresAffectingProductionandTradeSubsidiesTurkey'sInvestmentEncouragementProgramme(IEP),whichistheonlysupportprogrammetargetinginvestment,hasbeensubjecttosomemodificationsduringthereviewperiod.
ThecurrentlegalframeworkiscontainedintheDecreeConcerningStateEncouragementstoInvestmentstodefinethepurpose,scope,incentives,regionalclassification,eligibilitycriteriaandotherbasicimplementationrules.
TheIEPnowfollowsathree-pillarapproach,focusingonregionalandsectoralimplementation,large-scaleinvestmentscontributingtointernationalcompetitivenessemployinghightechnologiesandR&Dactivities,andageneralinvestmentencouragementmechanism.
Forregionalandsectoralsupport,Turkeyisdividedintofourregions,andtheincentivesprovidedarelinkedtothenatureoftheinvestmentandthedevelopmentstatusoftheregionwheretheinvestmentislocated.
MinimuminvestmentlevelsrangefromTL50milliontoTL1billionforlarge-scaleinvestments,andminimuminvestments,differentiatedbyregionandsector,havebeenestablishedforregionsItoIV.
Thegeneralinvestmentencouragementmechanismcoversinvestmentsthatdonotfallwithinthescopeofregionalsupportorlargeinvestments,butareabovethespecifiedminimumamounts.
However,thegeneralmechanismexcludesinvestmentsincertainspecifiedactivities,andspecificconditionsmustbefulfilledforinvestmentsinsomeotheragriculturalandservices-relatedactivities.
TheIEPisimplementedbytheMinistryofEconomy,whichissuesInvestmentEncouragementCertificatesthatallowinvestorstobenefitfromtheincentiveslistedinthecertificates.
CustomsdutyandVATexemptionsareavailableforallinvestmentsundertheIEP.
Inaddition,regionalsupportandincentivesforlargeinvestmentsincludereductionsincorporateorincometax,budgetfundingofthesocialsecuritypremiumtobepaidbytheemployer,andlandallocation.
InvestmentsinregionsIIIandIV,inresearchanddevelopment,orinenvironmentalprojectsmayalsobenefitfrominterestsupport.
PursuanttoCommuniquéNo.
2008/1andinthecontextofLawNo.
5084onEncouragementofInvestmentsandEmploymentandAmendmentofCertainLaws,Turkeywillcontinuetoprovideenergysupportuntil31December2012,i.
e.
subsidizedelectricitytoenterpriseslocatedinprovinceswitha(2001)GDPpercapitaofUS$1,500orless,oranegativesocio-economicdevelopmentindex(for2003)accordingtotheStatePlanningOrganization.
Enterprisesmusthaveatleast10to30employees,dependingonthesectorordateofapplication,oroperateinmanufacturing,mining,tourismaccommodation,educationorheath,orspecifiedagriculturalactivities.
UnderMinisterialCouncilResolutiononStateAidsRelatedtoExports(No.
6401of27December1994),Turkeyhasestablished11state-aidprogrammes,someofwhichtargetSMEs(TableIII.
17).
Additionalsupportprogrammesaretheorganizedindustrialzones(OIZs),industrialzones,thesmall-scaleindustrialestatesscheme,KOSGEB,andtechnologydevelopmentzones.
TableIII.
17Keyfeaturesofthestateaidprogrammes,2011ProgrammeAimandbeneficiariesSupportImplementinginstitutionsResearchanddevelopmentprojectsTosupportcompaniesconductingR&Dprojects,regardlessofsize;allindustrialcompaniesandfirmsthatproducesoftwareSoftloanforcapitalsupport(tobepaidbackinUS$withLiborplusinterest)fortwoyears-SMEProjectSupportProgramme-R&D,InnovationandIndustrialPracticeSupportProgrammeTurkishTechnologyDevelopmentFoundationKOSGEBEnvironmentalprotectionactivitiesTosupportexpensesofSMEsduringcertificationofqualityassurance,environmentalmanagementsystems,andCEmarking;allSMEsmanufacturingandsoftwarecompanies50%oftherelevantcertificationexpenses-ThematicProjectSupportProgrammeExporters'UnionsKOSGEBParticipationininternationalfairsandexhibitionsToincreaseparticipationinfairsabroad;companies,sectoralforeigntradecompanies,producers/manufacturersorganizations50%ofparticipationfees(inthecaseofnationalparticipation);50%oftherentalcostofemptystand,and50%oftransportationcosts(inthecaseofindividualparticipation)-BusinessMatchingSupportExporters'UnionsKOSGEBOrganizingdomesticfairswithinternationalparticipationaTopromoteinternationalfairsorganizedinTurkeyandtofosterinternationalparticipation;companiesthatorganizeinternationalfairsinTurkey50%ofpromotionalactivities;50%oftransportationexpensesofrepresentativesofforeigncompanies;and50%ofexpensesregardingactivitiesduringthefair-ForeignBusinessTripSupport-BusinessMatchingSupportExporters'UnionsKOSGEBMarketresearchprojectsToincreaseawarenessofcompaniesaboutnewmarkets;companies,sectoralforeigntradecompanies,producers/manufacturersorganizationsBuyingmarketresearchprojects,reports,andstatistics;financialassistanceforcompaniesparticipatingintrademissionsabroad,andforbecomingmembersofB2BwebsitessoastomarkettheirproductsabroadExportPromotionCentre-ForeignBusinessTripSupport-BusinessMatchingSupportKOSGEBTableIII.
17(cont'd)OperatingstoresabroadTopromotecompaniesoperatingstoresabroad;companies,andsectoralforeigntradecompanies50%oftheadvertisement,rent,officeinventoryanddecorationexpendituresofcompaniesoperatingastoreabroadExporters'UnionsEncouragingemploymentinsectoralforeigntradecompaniesTopromoteemployment;sectoralforeigntradecompanies75%ofthepre-taxsalaryforonemanagerandtwostaffwithprofessionalexperience,foroneyearMinistryofEconomyCompetitivenessInstitutionofcollaborations(exporterunions,chamberofcommerce,organizedindustrialzones,sectoralassociations,sectoralforeigntradecompanies)aregivensupportforprojectbasedcommonactivitiesfortheirmembersAnalysis,sectoranalysisintermsofcreatingsharedvision,roadmapfortheprojectmembers);Training,counsellingandadvisoryactivitiesforcompanies;Internationalmarketingandsalesactivities;Employmentofcoordinator/manager(formanagingtheprojectandorganizingprojectbasedcommonactivities);75%oftrainingcostsforprogrammesuptosixmonths;75%ofconsultancyservicescostsuptooneyearExportPromotionCentreEncouragingdesignersTopromotedesigners'companiesactivitiesabroad50%ofconsultancyfees,rentalfees,advertisement,certificationexpensesandfeesfortheregistrationoftrademarksExporters'UnionsandMinistryofEconomyTechnicalconsultancyactivitiesabroadToencouragetechnicalconsultancycompaniestooperateabroadAtleast50%ofrentalfees,advertisement,marketresearchprojects,fairandconferenceparticipationfees,feasibilitystudiesandagreementexpendituresMinistryofEconomyPromotingTurkishtrademarksandimprovingtheimageofTurkishgoodsTosupportbrandcreationandpositioningactivities,companies,andsectoralforeigntradecompanies50%ofconsultancyfees,rentalfees,advertisement,certificationexpensesandfeesfortheregistrationoftrademarksExporters'UnionsandMinistryofEconomyaThefairmustbeorganizedatleastthreeyearsinadvance,aminimumof100companiesisrequired(25ofwhichmustbeforeign),andafaircannotbesupportedmorethantwice.
Source:InformationprovidedbytheTurkishauthorities.
TheOIZsoffersubsidizedindustrialplots;infrastructure,includingtransportationandcommunicationfacilities;andsubsidizedcredits.
Some93OIZshavebeenestablishedsincethestart-upin1962.
Creditgrantedduring2006-10amountedtoUS$268.
5million.
IndustrialzonesareestablishedbytheCouncilofMinisterspursuanttotheIndustrialZonesLaw.
TheMinistryofScience,IndustryandTechnologydevelopsproposalstoestablishindustrialzones,andfundstheacquisitionoflandandthepreparationofinfrastructure.
Datingbackto1965,thesmall-scaleindustrialestatesschemeprovidescreditfortheconstructionofmodernworkshopswithsanitaryconditions.
Mainactivitiesintheestatesarecar-repairworkshops,metalmanufacturing,andwood-workingindustries.
Between2006and2010,Turkeyestablished35newOIZsand47smallestates.
KOSGEB,whichfocusesonthedevelopmentofSMEs,providesservicesrelatedtoproduction,marketing,andqualitycontrol,aswellassupportprogrammessuchastheSMEProject,theThematicProject,Cooperation-Collaboration,R&D,InnovationandIndustrialPractice,Entrepreneurship,andGeneralandEmergingCompaniesMarketSME.
TechnologydevelopmentzoneshavebeenestablishedtopromotethedevelopmentoftechnologyandsoftwareandrelatedR&Dcapabilitiesthroughcooperationbetweenuniversities,researchinstitutions,andthebusinesscommunity.
Financialsupportismadeavailableforlandprocurement,infrastructure,theconstructionofadministrativebuildings,etc.
Incomeandcorporatetaxexemptionshavebeengranteduntiltheendof2023.
Researchers,softwareengineers,andR&Dpersonnelworkinginthezone(s)arealsoexemptfromalltypesoftaxuntiltheendof2013.
Turkeyhasestablished43technologydevelopmentzones.
TheLawonMonitoringandSupervisionofStateAids,whichenteredintoforceon23October2010,setstheframeworkforensuringthecompatibilityofstateaidswiththerelatedprovisionsofagreementsanddecisionsbetweenTurkeyandtheEU.
AStateAidsMonitoringandSupervisionBoardisresponsibleforthemonitoring,supervision,andevaluationofcompatibility.
TheBoardwill,asnecessary,providenotificationstotheEuropeanCommissionandotherrelatedauthorities,havingcollectedrelevantinformationfromtheaid-grantingauthorities.
TheGeneralDirectorateofStateAidsactsassecretariatfortheBoard.
Technicalbarrierstotrade,standardsandcertificationDecisionNo.
1/95oftheTurkey-EUAssociationCouncil,whichestablishestheCustomsUnionbetweenTurkeyandtheEU,alsocallsforTurkeytoadoptEUinstrumentsrequiredtoeliminatealltechnicalbarrierstotradeinparticularproducts.
Accordingly,in2002,TurkeyadoptedtheLawNo.
4703onthePreparationandImplementationofTechnicalLegislationonProductsandfourimplementingregulationsTheTurkishauthoritiesareplanningtoamendtheframeworklawandtheimplementingregulationsduetochangesintheEUhorizontallegislationin2008and2010.
TheMinistryofEconomyisresponsiblefortheimplementationoftheAgreementonTechnicalBarrierstoTradeinTurkey.
TurkeyhasestablishedtwoNationalTBTEnquiryPoints;theDirectorateGeneralofProductSafetyandInspection(underthetheMinistryofEconomy)fortechnicalregulationsandconformityassessmentprocedures,andtheTurkishStandardsInstitution(TSE)forstandards.
TheDirectorateGeneralmaintainsawebsitetofacilitateaccesstoTBTnotifications,andtoobtainopinionsfromthedifferentstakeholdersonimplementationofmeasuresandmarketaccesschallenges.
(a)StandardsTheTurkishStandardsInstitution(TSE)hasbeendevelopingandimplementingstandardsforalltypesofmaterialandproductsmanufacturedinTurkey(orimported)since1960.
TheTSEisafullmemberoftheInternationalOrganizationforStandardization(ISO)andtheInternationalElectrotechnicalCommission(IEC).
AttheEuropeanlevel,theTSEisanaffiliatememberoftheEuropeanCommitteeforStandardization(CEN)andtheEuropeanCommitteeforElectrotechnicalStandardization(CENELEC).
TurkeyisalsoamemberoftheInternationalTelecommunicationsUnion(ITU),althoughthisismanagedbytheMinistryofTransport,MaritimeandCommunications.
TSEacceptedtheTBTCodeofGoodPracticeforthePreparation,AdoptionandApplicationofStandardsin1995.
TheTSEpublishesanannualworkprogramme.
A(minimum)two-monthcommentperiodisprovidedfordraftstandards,takingintoaccountthecontentandspecificityofthedraft.
Atpresent,Turkeyhas33,097standards,bydefinitionvoluntary.
AccordingtotheTurkishauthorities,theTSEhasadoptedalmost99%ofCENandCENELECstandardsintoTurkishstandards.
ManufacturersthatfollowTurkishstandardsalignedwithEuropeanproductstandardsarepresumedtobeinconformitywiththerequirementsoftheassociatedEUDirectives,andequivalentTurkishtechnicalregulations.
(b)TechnicalregulationsTheRegimeforTechnicalRegulationsandStandardizationforForeignTrade,inforcesince1995andamendedbyDecreeNo.
9454/2005,providesthenationalframeworkforTurkey'stechnicalregulationsandconformityassessmentprocedures.
TheregimeistransitionalandrevisedannuallyinthelightofprogressinthetranspositionofEUlegislationintoTurkey'slegalsystem.
Thetechnicalregulationsimposeproductrequirementsandspecificationsonimportedanddomesticallyproducedgoods,includingrequirementsrelatedtohealthandsafety,environmentalaspects,andlabelling.
AccordingtotheTurkishauthorities,Turkeyhastransposedaround82%ofthesector-specificEUdirectivesintoTurkishtechnicalregulations,including222technicalregulationsandtheadoptionof24"newapproach"Directivescoveringproductssuchasradioandtelecommunicationterminalequipment,batteriesandaccumulators,toys,personalprotectiveequipment,constructionproducts,medicaldevices,gasappliances,civilexplosives,andlifts.
ThetransposedDirectivescoverapproximately70%ofmanufacturedgoodsimportedintoTurkey,andimposevarioustechnicalproductrequirementsandspecifications.
ConformityassessmentcontrolsfortheseproductsareimplementedthroughannualCommuniqués.
OtherCommuniquésrelatetoproductgroupscontrolledbyotherlegislationorsubjecttoimportrulesorprohibitions,forexamplecontrolledorprohibitedwastes,narcotics,chemicalproducts,solidfuels,pharmaceuticals,andcontrolledorprohibitedscrapmetal.
TechnicalregulationsarepreparedbyMinistriesand/orrelevantpublicauthoritiesandpublishedintheOfficialGazette.
TheMinistryofEconomyoverseestheprocess.
ItisresponsiblefortheharmonizationofhorizontalTurkishtechnicalregulationswithEUtechnicallegislation,andservesasthecontactpointfornotificationstotheEuropeanCommissionofdrafttechnicallegislationtransposingEUlegislation.
Followingconsultationsandamendments,theconfirmedTurkishlegislationispublishedintheTurkishOfficialGazette.
AlltechnicalregulationsandconformityassessmentprocedurespublishedandputintoforcebyMinistriesandotherpublicauthoritiesarepublishedintheOfficialGazette,whichmaybeaccessedviatheInternetfreeofcharge.
Turkeydoesnotpublishnoticesofdrafttechnicalregulationsandconformityassessmentprocedures;ithasnotnotifiedtotheWTOdrafttechnicallegislationthatisbeingharmonizedwithEUlegislation,asthislegislationwouldalreadyhavebeennotified.
However,giventhegrowingimportanceoftransparencyattheinternationallevel,Turkeyisreconsideringthispolicy,andthenationalTBTenquirypointisurgingministriesandotherpublicinstitutionstonotifytheirtechnicalregulations.
Uponrequest,Turkeywillprovidethefulltextofdraftmeasures(inEnglish,ifpossible,otherwiseinTurkish).
Turkeygenerallyallowsa60-daycommentperiod.
TheCommuniquésonStandardizationforForeignTradearerevisedannuallytotakeaccountofissuesarisingfromtheimplementationprocessorproposalsandopinionsgatheredfromthepublicandprivatesectors.
Inurgentsituations,aCommuniquémayalsobeamendedinthecourseoftheyear.
Modificationstotheregimemayincludetheeliminationoftechnicalregulationsorconformityassessmentprocedures.
Turkey'slegislationformarking,labelling,andpackaging,largelyunchangedsince2007,isprimarilybasedonthreetechnicalregulations:onmarking,labellingandpackagingofmaterialsandproductssuppliedpackagedintothemarket(TS4331),onthelabellingoftextileproducts(TS1418),andonthemarkingbycoloursoralphanumericsystemforelectro-technicalpurposes(TS6429).
Clearlylegibleandvisiblelabelsdisplayingprice,placeofproduction,anddistinctivecharacteristicsmustbeaffixedonretailgoods,theirpackagingortheircontainers.
Whereitisnotpossibletoaffixsuchlabelsonparticulargoods,clearlyvisibleandaccessiblelistscontainingthisinformationmustbepreparedanddisplayed.
Thesamemarking,labelling,andpackagingrequirementsapplytodomesticandimportedproducts.
TheDecreeonLabellingandPackingreferringtoLawNo.
1262regulatesthemarking,packaging,andlabellingofpharmaceuticals;andtheDecreereferringtotheLawNo.
3977regulatesthemarking,packaging,andlabellingofcosmetics.
Tobaccoproductsandalcoholicbeveragesmustbeaffixedwithstrip-stampswithsecuritymarkingsdesignedtoprovidetaxsecurity,underCommuniquéNo.
1onTrackingandTracingSystemRelatedtoTobaccoProductsandAlcoholicBeveragespursuanttoArticle257(repeated)oftheTaxProceduralLawNo.
213.
(c)ConformityassessmentproceduresTurkey'sconformityassessmentproceduresvaryaccordingtowhethertheproductiscoveredbytransposedEUDirectives,andtheriskleveloftheproduct.
AllproductscoveredbytheEU'snewapproachDirectivesmustcarrytheCEmark.
Forsomeproducts,theCEmarkisobtainedfrombodiesdesignatedbytherelevantpublicauthoritiesandnotifiedtotheEuropeanCommissionbytheMinistryofEconomy.
Otherproductsareaccompaniedbyasupplier'sdeclarationofconformity(i.
e.
withtherequirementsoftheCEmark).
ProductsnotcoveredbythenewapproachDirectivesmustmeettherequirementsoftherelevantTurkishtechnicalregulationsformarketaccess.
High-riskproducts,andotherproductslistedintheannexesoftheCommuniquésonStandardizationforForeignTrade,arerequiredtomeetadditionaltesting.
CertificationandconformityassessmentproceduresareperformedbytheMinistryofEnvironmentandUrbanizationonenvironment-relatedproductssuchashazardouswastes,solidfuels,andmetalscrap,andbytheMinistryofHealthonmedicalproducts,pharmaceuticals,andnarcoticdrugs.
Foranumberofimportedgoods,theMinistriesofHealth;FoodAgricultureandLivestock(MFAL);orEnvironmentandUrbanizationissue"controlcertificates".
TheMinistryofEconomyhasappointedtheTSEtocarryoutconformityassessmentonimportedindustrialgoodssuchasmachinery,LVD,EMC,fittings,andpistonrings.
TheTSEalsooverseesindustrialmetrologyandcalibration,andlaboratoryservicesforconformityassessmentandcertification.
Whilehigh-riskproductsfromtheEUbearingaCEmarkarenotsubjecttotheinspectionanddocumentationrequirementsoftheCommuniquésonStandardizationforForeignTrade,importsfromthirdcountriesare.
ImportcontrolsonproductscoveredbyotherEUDirectivesareperformedbyproductinspectorsintheprovincialofficesoftheMinistryofEconomy.
AnewTurkishProductSafetySystemwaslaunchedinlate2010tofacilitateelectronicrisk-basedexportandimportcontrolsofgoods.
TheTSEcarriesoutcertificationservicesrelatedtoTS-EN-ISO9001:2000;TS-EN-ISO14001;TS13001(HACCP);andTS18001(OHSAS).
AsofAugust2007,theTSEhadissuedmorethan52,000products/servicescertificates.
TheTSEisalsoinvolvedinqualityandsystemcertification,andtrainsandcertifiespersonnelinquality,environment,health,andsafety.
MutualrecognitionoftestingproceduresisassuredbyagreementsbetweenTurkeyandEUmemberstates.
TheTSEjoinedtheIECSystemforConformityTestingandCertificationofElectricalEquipment(theIEC-EECBScheme)toensuremutualrecognitionofresultsoftestsperformedinconformitywithIECstandardsonsafetyofelectricalappliancesin1998,andtheTSEbecameasignatorytovariousmutualrecognitionarrangementsundertheLowVoltageDirective(LVD)in1999.
TheTurkishAccreditationAgency(TURKAK),establishedin2000,isresponsibleforaccreditingdomesticandforeignconformityassessmentbodiesandensuringthattheycarryoutlaboratory,certification,andinspectionservicesinaccordancewithinternationalstandards.
TURKAKisafullmemberoftheEuropeancooperationforAccreditation(EcA),theInternationalAccreditationForum(IAF),andtheInternationalLaboratoryAccreditationCooperation(ILAC).
TheConformityAssessmentAssociation(UDDer),establishedin2006,bringstogether65TurkishstakeholderstosupportthedevelopmentofconformityassessmentactivitiesinTurkey,includingtheirrecognitionatnationalandinternationallevels.
UnderLawNo.
1705,theGeneralDirectorateofMeasuresandStandardsoftheMinistryofScience,IndustryandTechnology(MSIT)isresponsibleforqualitycontrolsystemsconcerninglegalmetrology,establishmentofcalibrationsystemsoftestlaboratories,andoperatingprivatelaboratoriesinaccordancewiththeMeasurementandCalibrationLawNo.
3516of1989.
Allproducts,importedordomesticallyproduced,aresubjecttomarketsurveillanceactivities,carriedoutby10publicauthorities.
TheMinistryofEconomyhandlescoordinationbetweentheauthoritiesthroughtheMarketSurveillanceCoordinationBoard.
TheMinistrypreparesannualreportsincludinginformationandstatisticsonthemarketsurveillanceactivities.
Since2007,Turkeyhasprovidedsixnotificationsoftechnicalregulationsandconformityassessmentproceduresrelatingtomeasuresforconstructionproducts,fertilizer,oliveoil,foodstuff,andanimalfeed.
Inaddition,aTurkey-UkrainememorandumonIntentforCooperationinthesphereofTechnicalRegulations,Standardization,Metrology,ConformityAssessmentandConsumerProtectionwasnotifiedtotheWTObyUkraine.
Turkeyhasalsoconcludedvariousothercooperationagreements,forexamplewithChina,EFTAmemberstates,Israel,Bulgaria,Iran,andLebanononstandardization,metrology,andconformityassessment.
FourspecifictradeconcernshavebeenraisedagainstTurkeyintheTBTCommitteesince2007.
Commonfeaturesamongtheconcernshavebeenthelackoftransparencyinthedevelopmentandimplementationofmeasures,incompleteanduntimelynotificationtotheWTO,andtheinsufficienttimeprovidedtoadapttotherelevantrequirements.
SanitaryandphytosanitarymeasuresTurkeyisafullmemberoftheWorldOrganizationforAnimalHealth(OIE),theInternationalPlantProtectionConvention(IPPC),andtheCodexAlimentariusCommission,andisharmonizingitslegislationwiththeinternationalstandardssetbytheseinstitutions.
Turkey'sSPSlegislationisprimarilybasedonLawNo.
5996onVeterinaryServices,PlantHealth,FoodandFeed(2010),whichamalgamatedanumberofpreviouslawsinthisarea;theSanitaryLawNo.
1593of1930;theFisheryLawNo.
1380,asamendedbyLawNo.
3288of1986;theTurkishFoodCodexRegulation(1997),currentlyunderrevision;andtheLawonAgriculturalQuarantine.
TurkeyadoptedaBiosafetyLawandarelatedGMORegulationin2010,regulatingallaspectsofagriculturalbiotechnologyinTurkey,andrequiringfoodandfeedproductscontainingGMOstobelabeledassuch.
TurkeycontinuestotransposetheEUacquisintoitsfood-relatedlegislation.
Turkeymakesnodistinctionbetweendomesticallyproducedandimportedgoodsinitsapplicationofhealthandsanitarycontrols.
ImportsofagriculturalproductsandfoodstuffsrequireacontrolcertificateissuedbytheMinistryofFood,AgricultureandLivestock(MFAL);theMinistryofHealthissuescontrolcertificatesforimportedpharmaceuticalproducts,drugs,certainconsumablemedicalproducts,cosmetics,anddetergents;andimportedforestrymaterialsrequireacontrolcertificateissuedbytheMinistryofEnvironmentandUrbanizationincoordinationwithMFAL.
Listsoftheproductssubjecttocontrolcertificatesarepublishedannually.
TherelatedcommuniquéispreparedunderthecoordinationofMFALandtheMinistryofEconomy.
Dependingonthetypeofproduct,theapplicationtotherelevantministryforacontrolcertificateshouldbeaccompaniedbyaproformainvoice,ahealthcertificate,acertificateofanalysis,aformulaorlistofcontentsoftheproduct,apedigreecertificate,andaradiationanalysisreport.
Thedocumentsmustbeobtainedfromand/orapprovedbytherelevantauthoritiesintheproducercountry,andbeinoriginallanguagetogetherwithatranslationintoTurkish.
Forliveanimalsandcertainanimalproducts,theimporterorthoseinchargeoftheshipmentshouldobtainpriorpermission(i.
e.
beforeimportation)fromthecompetentauthority.
Certificatesandotherrelevantdocumentsshouldbepresentedduringthecontrolsatthepointofentryorcustomsareawheretheactualimportationtakesplace.
Veterinarychecksincludeverificationofdocuments,identitycontrols,andphysicalchecks.
Controldocumentsfornon-animal-originfoodandfeeddonotneedtobesubmittedtothecustomsauthoritiesinthecourseofimportation.
Theperiodofvalidityofcontrolcertificatesrangesfromfourtotwelvemonths,dependingontheproduct.
Turkeyhassignedcooperationagreementstopreventanimaldiseasesfromenteringthecountrythroughtradeinandtransitofliveanimalsandanimalproducts,veterinarymedications,fodder,andotherproductsthatmayaffectanimalhealth.
Moreover,bilateralagreementsonaproduct-by-productbasishavebeensignedwithBelgium,France,Germany,Italy,theNetherlands,NewZealand,theUnitedKingdom,andtheUnitedStatesinrelationtotheuseofsanitaryandphytosanitarycertificates.
Turkeyfaceditsfirstavianinfluenza(AI)outbreakinOctober2005,andfurtheroutbreaksfollowedin2006duringwhichsome2.
5millionbirdswereculled.
NonewhumanorbirdcasesofavianinfluenzahavebeenreportedinTurkeysinceApril2008.
Vaccinationcampaignsagainstnewstrainsoffoot-and-mouthdiseasehavebeenimplementedeffectively,andcontinuedforotherdiseasessuchasbrucellosis,sheepandgoatplague,anthrax,sheepandgoatpox,bluetongue,andNewcastlediseaseandrabies.
FortheimplementationoftheAgreementontheApplicationofSanitaryandPhytosanitaryMeasures,Turkey'sNationalEnquiryPointandNotificationAuthorityistheGeneralDirectorateofFoodandControloftheMFAL.
TurkeynotifiesnewSPSmeasuresaffectingtradethroughtheWTO,andaperiodofsixmonthsisforeseenbeforeentryintoforceoftherelevantregulations.
SinceitslastTPRin2007,Turkeyhasprovided23SPS-relatednotificationstotheWTO,eitherasregularnotificationsoraddendaorcorrigendatopreviousnotifications.
OnespecifictradeconcernhasbeenraisedintheSPSCommitteeinrelationtoTurkey'snewlegislationonbiosafety.
Turkeyhasexerciseditsthird-partyrightswithrespecttoonerecentdisputerelatedtotheSPSAgreement.
Freezones,specialeconomicareasFreeZonesLawNo.
3218of15June1985andtheFreeZonesRegulationof1993constitutethebasiclegalframeworkfortheoperationofTurkey's19freezones.
Thelegislationisdesigned,interalia,topromoteforeigndirectinvestmentandjointventuresinexport-orientedenterprises,provideeasyaccesstoimportedrawmaterialsandequipmentonfavourableterms,andtoincreaseemployment.
Freezonesarealsotargetedatregionaldevelopment.
Thefoundationandoperationofthefreezonesaregenerallyundertakenthroughamixofgovernmentandprivatepartnership(oftenwithintheframeworkofbuild-operate-transferschemes,suchasintheAegean,Kocaeli,Adana-Yumurtalik,andSamsunfreezones).
Investorsmayconstructtheirownpremisesinthefreezones,butofficespace,workshopsandwarehousesarealsoavailableforrent.
Anoperatinglicenceisvalidformaximum15yearsfortenantusers(30yearsforusersbuildingtheirownfacilities).
Iftheoperatinglicenceisforproduction,thevaliditytermisextendedto20and45yearsfortenantusersandinvestors,respectively.
Financialincentivesavailabletofree-zonecompaniesincludeexemptionfrompaymentofcustomsdutiesandfees;exemptionfromcorporate,income,andvalue-addedtaxes;freerepatriationofprofits;100%repatriationofcapitalwithoutpriorpermission;andabsenceofforeignexchangerestrictions.
NewarrangementsfortaxincentivesinthefreezoneswereintroducedunderLawNo.
5084of29January2004ontheEncouragementofInvestmentsandEmployment.
PursuanttoLawNo.
5084,allexemptionsexceptthosealreadyaccordedtoestablishedfirmsweretobeterminatedby31December2008.
However,accordingtoLawNo.
5810of12November2008(amendingLawNo.
3218)onlyfree-zoneusersoperatingunderaproductionlicencemaybeexemptedfromincomeandcorporatetaxes.
ThisexemptionappliesuntiltheendofthetaxationperiodoftheyearinwhichTurkeybecomesafullmemberoftheEU.
Enterprisesestablishedinthefreezonesareactiveinawiderangeofareas,includinghightechnologyproducts,leathergoods,andstoragefacilities.
Allindustrial,commercialandserviceoperationsdeemedappropriatebytheSupremePlanningBoardmaybeconductedintheFreeZones,underArticle10oftheFreeZonesRegulation.
Offshorebankingandinsurancebusinessisnotallowed.
Customsbrokeractivitiesmaybeconductedbyacquiringeitheranactivitylicenceoranentrypermitdocument.
Entryintothezonesoffirearmsandammunition,radioactivesubstances,anddangerousandtoxicwastesisprohibited(Article32oftheRegulation).
Inflammables,explosives,combustibles,fire-inducingsubstancesormaterialsdangeroustoothersubstancesmayonlybebroughtintothezoneswithaspecialarrangementorfacilityforthatpurpose.
Themovementinandoutofthezonesofnarcoticsubstances,psychotropicsubstances,andrelatedchemicalsubstancesandtheirpreparationsaresubjecttonationalandinternationallegislationimplementedbytheMinistryofHealth.
AlthoughforeigninvestorsbenefitfromthesameincentivesasTurkishinvestors,andnolimitationexistsonforeigncapitalparticipationininvestmentsinthefreezones,mostenterprisesestablishedinthezonesareofTurkishorigin.
Attheendof2010,thefreezonescomprised2,532enterprises,ofwhich470wereforeignowned.
SalesfromthefreezonestotheTurkishmarketoutweighsalestoothercountries(TableIII.
18).
SalesintothedomesticcustomsterritoryaresubjecttoTurkey'sMFNimportregime,includingthepaymentofimportdutiesandtaxes.
Deliveriesfromthedomesticmarketintothefreezonesconstituteroughlyonequarterofthe"import"valueofthezones.
Thedomesticsuppliersarenoteligibleforincentivesapplicableinthefreezones.
TableIII.
18Freezonestrade,2007-10(US$millionand%)2007200820092010US$%US$%US$%US$%Freezonestodomesticmarket7,91732,227,26229,555,17429,145,29128,49Domesticmarkettofreezones3,04512,393,195132,17712,262,29512,36Othercountriestofreezones8,30033,788,24833,565,49330,936,62635,67Freezonestoothercountries5,31121,615,87323,904,91427,674,36123,47Total24,57310024,57810017,75710018,572100Source:InformationprovidedbytheTurkishauthorities.
TransitThebasicprovisionsoncustomsformalitiesrelatedtogoodsintransitarelaiddowninArticles84to92oftheCustomsLaw.
Asageneralrule,goodsintransitarenotexaminedbythecustomsadministrationatthepointofentry.
Whendeemednecessary,theconsignmentsmaybesealedorescortedbycustomsofficials.
Incaseofsuspicionordenunciation,goodsintransitmaybeinspected;iftheprincipalsodesires,he,hisrepresentativeorthetransportershouldbepresent.
TheMinistryofCustomsandTradeisauthorizedtoadoptregulationsregardingtheexaminationofgoodsintransitandtransitperiods,transitroutes,checkpointsorhaltingplacesforgoodscarriedoverland.
Transitperiods,transitroutes,checkpointsorhaltingplacesaresetoutintheTIRRegulation.
CompetentregionaldirectoratesoftheMinistryofEconomyareentitledtoauthorizethetransitofgoodssubjecttoimportprohibition.
Goodsintransitaresubjecttocustomsfeesforservicesrendered(e.
g.
forloading,unloading,sealingorwarehousing).
CountertradeandbarterTurkeycurrentlyhasnospecificregulationonbarterorcountertradeas"CommuniquéNo.
4/2006onExportationMadethroughCounter-PurchaseorBarter"wasabolishedthroughCommuniquéNo.
10/2008.
SuchpracticesmustthereforebeconductedpursuanttotheExportRegulation.
CiviloffsetpracticesaremanagedbytheMinistryofEconomyandregulatedbyCommuniquéNo6/2007.
Twocivilaviationoffsetprojects,initiatedin1998and2000,werecompletedin2008and2010,respectively.
GovernmentprocurementTurkey'sbasiclegislationongovernmentprocurement–thePublicProcurementLaw(PPL)No.
4734of2002andthePublicProcurementContractsLawNo.
4735of2002–enteredintoforceon1January2003.
Thelawshavebeensupplementedbythe(i)RegulationonImplementationofServicesProcurements;(ii)RegulationonImplementationofGoodsProcurements;(iii)RegulationonImplementationofWorksProcurements;(iv)RegulationonImplementationofConsultancyServicesProcurements;(v)RegulationonImplementationofElectronicProcurement;and(vi)theRegulationonAdministrativeApplicationsagainstProcurements.
ThePublicProcurementLaw(PPL)hasbeenamendedonseveraloccasions,mostnotablyinDecember2008throughLawNo.
5812,toalignTurkey'spublicprocurementlegislationwiththeEUacquis.
ModelledonEUDirectives,LawNo.
5812introducedseveralnewinstrumentssuchaspriornotice;theavailabilityofframeworkagreementsforallcontractingauthorities;astandstillperiod(betweentheawarddecisionandtheconclusionofacontract);e-procurementprovisionsincludingelectronicauctions,shortertime-limitsforelectronicpublicationofprocurementnotices,electronicavailabilityoftenderdocumentsandprocurementnotices,andtheestablishmentofanElectronicPublicProcurementPlatform(EPPP);simplifiedproceduresinvolvingshortertime-limitsandreducedadministrativeburdensforpotentialsuppliers;andtighterreviewprocedures.
ThetenderingproceduressetoutinthePPLare(i)opentenders,wherebyalltenderersmaysubmitbids,andnoticesarepublishednotlessthan40dayspriortothelaunchofthetenderingprocess;(ii)restrictedtenders,wherethecontractingentityinvitestendersfromselectedbiddersafteranopen-endedpre-qualificationprocess;and(iii)negotiatedtenders,appliedundercertainconditions.
Directprocurementmaybeusedinlimitedcircumstances,forexamplewhenonlyonesupplierexistsortheprocurementdoesnotexceedTL38,144forcontractingentitieswithinmetropolitanmunicipalities,orTL12,709forothercontractingentities.
Thecontractingofficermustnotifytheresultsofthebidevaluationtoallwhohavesubmittedtenders.
Iftheawardedbidderdoesnottakethecontract,itisofferedtothesecondmostadvantageousbid.
ThePublicProcurementContractsLawstipulatesprinciplesandproceduresfortheissuanceandimplementationofcontractsawardedpursuanttothePPL,includingrequiredcontent,limitationstocarrying-over,andcancellationprovisions.
InaccordancewiththePPL(Article53),thePublicProcurementAuthority(PPA)wasestablishedtoensureeffectiveimplementationofthelegislationandproperapplicationoftherulesandproceduresduringtenderproceedings.
TheAuthorityisadministrativelyandfinanciallyautonomous,withalinktotheMinistryofFinance.
ThePPAconsistsofapresidency,thePublicProcurementBoard(PPB),andserviceunits.
ThePPBisthemaindecision-makingbodyoftheAuthority,examiningcomplaintsand,asnecessary,takingcorrectiveactionincludingthedeterminationofremedies,cancellationoftenderdecisions,orterminationoftenderproceedings.
ThePPAchangeditsinternalorganizationon16July2008toseparateclearlyitsadvisoryandreviewfunctionssoastominimizethepotentialforconflictsofinterest.
ThePublicProcurementLawcoversmostpublicentitiesandinstitutionsgovernedbypubliclaw,underpubliccontrolorusingpublicfunds(Articles1and2).
Aseparatesection(Articles48-52)regulatestheprocurementofconsultancyservices.
OutsidethescopeofthePPLareprocurementsofsomegoodsandservicesofcertainpublicinstitutions(e.
g.
operatorsinthetelecom,transport,energy,andwatersubsectors);procurementrelatedtodefence,security,andintelligenceneeds;procurementcarriedoutthroughforeignfinancingpursuanttointernationalagreements;purchasesofgoodsandservicesforresearchanddevelopmentprojects;procurementrelatedtoagricultureandlivestock;purchasesfromtheStateSupplyOffice(DMO);andprocurementbypublicentitiesabroad,e.
g.
embassiesandconsulates.
ThethresholdsandmonetarylimitsspecifiedinthePPLareupdatedannuallybythePPAaccordingtotheevolutionoftheIndexofWholesalePrices.
A15%pricepreferencemaybegrantedtodomestictendererspursuanttoArticle63ofthePPL.
ThepreferenceisnotapplicabletojointventuresbetweenTurkishandforeigncompanies.
Thetenderersmustpresentacertificateoforigin,issuedbythechamberofcommerceintheareawherethegoodshavebeenproduced,tobenefitfromthepreferencemargin.
Althoughopenandrestrictedtendersarethemainproceduresused,someconcernshavebeenexpressedthatTurkey'spublicprocurementpoliciesarebeingunderminedbyresorttoexceptionstotheregulatoryframework.
In2010,27%ofpublicprocurementcontracts,representing13%oftheoverallcontractvalue,werenotsubjecttothetenderproceduresstipulatedinthePPL.
Furthermore,thepricepreferenceclausewasappliedto22%oftheoverallcontractvalue(abovethePPLthreshold).
TurkeyhasbeenparticipatingasanobserverintheWTOCommitteeonGovernmentProcurementsinceJune1996.
Asanobserver,TurkeyhasbeenfollowingthenegotiationstorevisetheAgreementonGovernmentProcurement.
Statetrading,state-ownedenterprises,andprivatizationTurkey'sprivatizationprogramme,whichbeganin1984,isreducingtheinfluenceofthepublicsectorintheTurkisheconomy.
However,theStateremainsanimportantownerofbanks,transportationcompanies,publicutilities,energyandminingenterprises,andprocessorsofcertainagriculturalcommodities(TableIII.
19).
Manyoftheseoperateundermonopolisticconditionsorholdexclusiverights,andtheirlossestriggerbudgetarytransfers.
TheprivatizationprogrammeiscarriedoutinaccordancewithPrivatizationLawNo.
4046ofNovember1994,asamended.
ThePrivatizationAdministration(atemporaryorganizationwithastaffofapproximately250civilservants)actsastheexecutiveagency,whilethePrivatizationHighCouncil(fourdesignatedministersactingunderthepresidencyofthePrimeMinister)isthedecision-makingbody.
ThePrivatizationAdministrationmayworkwithotherrelevantministriesandauthoritiesintheprivatizationofspecificpublicenterprises.
TheCompetitionAuthoritymonitorsprivatizations,anditsauthorizationisrequiredforcertaintypesoftransactionsbeforetheybecomelegallyeffective.
Privatizations,whichfrequentlyinvolveex-anterestructuring,areconductedthroughavarietyofmethods,including(i)assetsaleorsaleofshares(blocksaleand/orpublicoffer);(ii)saleortransferofoperationalrights;(iii)leasing;(iv)establishmentofpropertyrightsotherthanownership;and(v)aprofitsharingmodelandotherlegalprovisionsdependingonthenatureofthebusiness.
Assetsarevaluedusingatleasttwooftheseveralvaluationmethodsbeforetheyareputforwardfortendering.
TheTenderCommission,whichconductsthetender,mayoptforpublicauction,closedbidding,closedbiddingamongdesignatedbidders,orbargaining.
OncethePrivatizationHighCouncilhasapprovedthetransaction,thePrivatizationAdministrationcontactsthesuccessfulbiddertofinalizethecontract,thepaymentconditions,andthetransferoftheassets.
ThePrivatizationHighCouncilhasestablisheda"goldenshare"forfiveenterprisesdeemedtobeofstrategicimportance:TurkishAirlines(THY);TurkTelekom;PETKIM(petrochemicals);ERDEMIR(ironandsteel);andTUPRAS(petroleumrefining).
TableIII.
19Selectedpublicenterprises,2011PublicenterprisesActivityStateownership(%)RelatedlawManufacturingMKEKMachineryandchemicals100.
00DecreeLawNo.
233DMOOfficesupplies100.
00DecreeLawNo.
233SUMERHOLDINGTextiles100.
00LawNo.
4046MiningETIMADENISLETMELERIMiningindustry100.
00DecreeLawNo.
233TTKHardcoalmining100.
00DecreeLawNo.
233TKILignitemining100.
00DecreeLawNo.
233KBICopper100.
00LawNo.
4046ElectricityTEIASElectricitytransmission100.
00DecreeLawNo.
233EUASElectricitygeneration100.
00DecreeLawNo.
233TETASElectricitycontracting&wholesale100.
00DecreeLawNo.
233TEDASAssetownerofelectricitydistribution&retailsale100.
00DecreeLawNo.
4046TEMSANElectromechanicequipmentSubsidiaryDecreeLawNo.
233YENIKYELEKTRIKRETIMElectricitygeneration100.
00DecreeLawNo.
233KEMERKYELEKTRIKRETIMElectricitygeneration100.
00DecreeLawNo.
233PetroleumTPAOCrudeoilexplorationandproduction100.
00DecreeLawNo.
233BOTASCrudeoilandnaturalgastransportationandnaturalgasimport,transportation,distributionandsale100.
00DecreeLawNo.
233AgricultureTSFASSugarprocessing100.
00LawNo.
4046TMOTradeofgrainandotherproducts100.
00DecreeLawNo.
233CAYKURTeaprocessing100.
00DecreeLawNo.
233TTALeaf,tobaccoandsalt100.
00LawNo.
4046EBKMeat,fishprocessing100.
00DecreeLawNo.
233TransportationTCDDRailwayservices100.
00DecreeLawNo.
233TUDEMSASRailwaytransportationequipmentSubsidiaryDecreeLawNo.
233TULOMSASRailwaytransportationequipmentSubsidiaryDecreeLawNo.
233TUVASASRailwaytransportationequipmentSubsidiaryDecreeLawNo.
233DHMIAirportsadministration100.
00DecreeLawNo.
233KIYEMCoastsecurity100.
00DecreeLawNo.
233TDISeaportsadministration100.
00LawNo.
4046THYAirlines49.
12LawNo.
4046CommunicationPTTPost,telegraph100.
00DecreeLawNo.
233TURKTELEKOMTelecommunication31.
68LawsNos.
4046and406TURKSATSatellitecommunicationandcableTV100.
00LawNo.
406BankingTCZIRAATBANKASIBanking(agriculturalsupportcredits)100.
00LawsNos.
4603and5411T.
HALKBANKASIA.
S.
Banking75.
02LawNo.
4603and5411T.
KALKINMA.
BANKASIA.
S.
Banking(development)99.
08LawsNos.
4456and5411T.
IHRACATKREDIBANKASIA.
S.
(T.
EXIMBANK)Banking(exportcredit)100.
00LawsNos.
3332and5411T.
VAKIFLARBANKASIT.
A.
O.
Banking58.
45LawsNos.
6219and5411Source:InformationprovidedbytheTurkishauthorities.
Since1986,TurkeyhasraisedmorethanUS$42billionthroughprivatizationscarriedoutbythePrivatizationAdministration.
Themostsignificanttransactionscompletedsince2003arelistedinTableIII.
20.
TheGovernmenthasprivatizedallitscementmanufacturingenterprises;afoodchainstore(GIMA);producersofanimalfeed,milk,anddairyproducts;themajorityofthemeat,fishandpoultryprocessingcompanies;woodprocessingenterprises;anumberofseaports;allshipyards;Turkishcargolines;allrefineries;apetrochemicalprocessingcompany;theironandsteelindustry;twocommercialbanks(EtibankandSümerbank);andalltextilemanufacturingunitsownedbySümerbank.
Theprivatizationof19electricitydistributioncompaniesbeganin2008andcontinuedin2010and2011.
Ninepowergenerationplantsweresoldin2008,andthetransferofoperatingrightsfor52smallandmedium-sizedhydro-electricpowerstationswascompletedin2010.
Thefinaltenderofa56.
09%stakeinDOUSANA.
.
(amanufacturerofconcreteperlittiles)hasbeenfinalized,technically.
ThePrivatizationAdministrationisplanningtoprivatize24sugarprocessorsby2014.
Thecompanieshavebeengroupedinsixportfolios;tenderannouncementsforthreeoftheseportfoliosshouldbeissuedbeforetheendof2011.
PreparationsareadvancingfortheprivatizationofthetwoBosphorousbridges,seventollmotorways,theAnkaraandIzmirringroads,andtheserviceunitsoperatedbytheTurkishHighwaysGeneralDirectorate.
Afirstattempttoprivatizethenationallottery,in2009,wasunsuccessful.
Technicalstudiestolauncharetenderarecontinuing.
TheTurkishRedCrescentistheonlystate-tradingenterprisethatcontinuestobenotifiedtotheWTObyTurkey.
Thenon-profit,humanitarianaidorganizationholdsexclusiverightstoimportcertaindrugsusedinthefightagainstmalariaandsyphilis,i.
e.
cinchonabark,potassiumiodide,alkaloidsofcinchonaandtheirderivatives(quinidine),andprimaquinediphosphate.
TEKEL,aformertobaccoandalcoholstatemonopoly,wasstrippedofitsexclusiveimportrightsin2001,andsubsequentlyprivatized.
TableIII.
20Privatization,2003-10PrivatizedcompanySectorYearMethodofprivatizationAmount(US$million)BURSAGAZGasdistribution2004Blocksale120TEKEL(TurkishStatemonopoly)Alcoholicbeverages2004Blocksale292TUGSAS-IGSASGasdistribution2004Blocksale100.
5THYAirlinetransport200423%PO191.
2ETALUMINIUMMining2005100%Blocksale305TURKTELEKOMTelecommunications200555%Blocksale6,550ISTANBULHILTONOTELTourism2005Assetsale255TUPRASRefining200514%ISE454PETKIMPetrochemicals200534%ISE274TUPRASRefining200651%Blocksale4,140ERDEMIRIron&steel200646%Blocksale2,770BASAKINSURANCECOMPANYInsurance2006100%Blocksale268BUYUKEFESOTELTourism2006100%Blocksale121.
5BUYUKTARABYATourism2006100%Blocksale145.
3THYAirlinetransport200628.
75%PO207.
8HALKBANKBanking200725%IPO1,839aMERSINPORTPortoperation200736yearsofconcession755bGENERALDIRECTORATEOFSTATEHIGHWAYS(1stLeventRealEstate)Realestate2007Assetsale800MOTORVEHICLEINSPECTIONSTATIONService200720years(concession)614cTURKTELEKOMTelecommunications200815%ISE1,911TEKELTURKISHTOBACCOTobaccoproducts2008Assetsale1,720PETKIMPetrochemical200851%Blocksale2,040ANKARANATURALELECTRICPRODUCTIONElectricitygeneration2008SaleofsharesbasedinTOR510TEDASBASKENTElectricitydistribution2009SaleofsharesbasedinTOR1,200TEDASSAKARYAElectricitydistribution2009SaleofsharesbasedinTOR600TEDASMERAMElectricitydistribution2009SaleofsharesbasedinTOR440SAMSUNPORTPortoperation201036years(concession)125.
2BANDIRMAPORTPortoperation201036years(concession)175.
5TEDAOSMANGAZElectricitydistribution2010SaleofsharesbasedinTOR485TEDAAMLIBELElectricitydistribution2010SaleofsharesbasedinTOR258.
5TEDAULUDAElectricitydistribution2010SaleofsharesbasedinTOR940TEDAYESILIRMAKElectricitydistribution2010SaleofsharesbasedinTOR441.
5TEDAFIRATElectricitydistribution2010SaleofsharesbasedinTOR230.
2Totalofallimplementations(1986-2010)41,720aApproximatelyUS$1.
2billionrepresentstheportionallottedtoforeigninvestorsasofthetransactiondate.
b40%oftheamountrepresentsforeigndirectinvestmentbythePortofSingaporeAuthorityasofthetransactiondate.
c30%oftheamountrepresentsforeigndirectinvestmentbytheGermanenterpriseTUV-SUDasofthetransactiondate.
Note:PO=Publicoffer;ISE=IstanbulStockExchange;IPO=Initialpublicoffer;TOR=Transferofoperationalrights.
Source:PrimeMinistry(2010),PrivatizationAdministration-AnnualReport2010.
Viewedat:www.
oib.
gov.
tr/2011/dosyalar/oib_faaliyet%202010_ING.
pdf.
CompetitionpolicyTheLawontheProtectionofCompetitionNo.
4054,promulgatedin1994andlastamendedin2008,remainstheprincipallegalbasisforthepromotionandenforcementofcompetitiveconditionsingoodsandservicesmarkets.
TheCompetitionAuthority,ledbyaseven-memberCompetitionBoard,hasbeenresponsiblefortheimplementationandenforcementofthelawsince1997.
Secondarylegislation,mainlyintheformofregulations,ispreparedbytheAuthorityandissuedbytheBoard.
Turkey'scompetitionlegislationaddressesthreeprincipalissues:anti-competitiveagreements,concertedpractices,anddecisions;abuseofdominantposition;andmergersandacquisitionsdistortingthecompetitivestructureofthemarket.
Agreementsdistorting,restrictingorpreventingcompetitionareinprincipleprohibited,unlesstheCompetitionBoardgrantsanexemption(orblockexemption).
TheBoardmayalsograntnegativeclearance,therebyconfirmingthatanagreement,decision,practiceorproposedmergeroracquisitiontransactionisnotdeemedcontrarytothecompetitionrules.
AnypracticeaffectingtheTurkishmarketiswithinthescopeofthelaw,includingagreementsconcludedoutsideTurkey(theeffectsdoctrine).
Exceptforcertaintypesofmergerinbanking,whichareoutsidethescopeoftheLaw,allsectorsarecovered.
PursuanttoArticles27(g)and30(f)oftheLaw,theCompetitionAuthoritymayprovideopinionsondraftlegislationandadministrativepracticesofotheragenciesandinstitutions.
Thus,commentsweremadeonadraftamendmenttothebylawonrawmaterialandsugarpricesin2009,andondraftamendmentstotheActontheElectricityMarket,adraftbylawbytheTobaccoandAlcoholMarketRegulatoryAuthorityonthesaleanddisplayoftobaccoproductsandalcoholicbeverages,andonthetenderspecificationsoftheTurkishFootballFederationin2010.
InOctober2009,theCompetitionAuthoritysignedaprotocolwiththePublicProcurementAgencytobuildacooperationframeworkbetweenthetwoagencies,aimingnotablytodealeffectivelywithbidriggingandtomakepublictendersmorecompetitive.
EffortstoconcludeagreementswiththeEnergyMarketRegulatoryAuthorityandtheInformationandCommunicationTechnologiesAuthorityareongoing.
TheAuthorityhasbeenworkingcloselywiththePrivatizationAdministrationontheprivatizationofmanystate-ownedenterprises.
ThenumberoffilesconcludedbytheCompetitionAuthorityrosesteadilybetween2000and2008(TableIII.
21).
TableIII.
21CaseshandledbytheCompetitionAuthority,2000-102000-10200520062007200820092010CompetitioninfringementsFilesopened1,17484108131166395.
.
Filesconcluded1,19397108148132178252Mergers/acquisitionsFilesopened1,543164199238249169.
.
Filesconcluded1,782170186232255146276Negativeclearance/exemptionFilesopened4034536346540.
.
Filesconcluded497503339574696TotalFilesopened3,120293343403480604.
.
Filesconcluded3,472317327419444370624.
.
Notavailable.
Source:InformationprovidedbytheTurkishauthorities.
PricecontrolsPricesforgoodsandservicesaregenerallydeterminedfreelybythemarketinTurkey.
However,pricecontrolsexistforelectricity,naturalgas,pharmaceuticals,telecommunicationservices,andtransport(inparticularrailtransport).
TheBoardoftheEnergyMarketRegulatoryAuthority(EMRA)approvesthetariffforelectricitytransmissionanddistribution,thewholesalepriceofthestate-ownedwholesalecompany,andretailsalesto"non-eligible"consumers.
TheEMRABoardalsoapprovestheretail,transmission,storage,andcitydistributiontariffsfornaturalgas.
Forpharmaceuticals,areferencepricesystemisusedtocontrolex-factoryprices.
MandatorydiscountsonsalesofpharmaceuticalstothepublichealthsystemwereincreasedinDecember2009.
AdecreewasissuedinDecember2010outliningpricereductionsof9.
5%tobeimplementedduring2011.
TheTelecommunicationAuthorityintroducedprice-capmechanismsforservicesprovidedbyTurkTelekomin2002.
Trade-relatedintellectualpropertyregimeTheprincipallegislationconstitutingTurkey'slegalframeworkfortheprotectionofintellectualpropertyrightsincludestheLawonIntellectualandArtisticWorks(No.
5846),asamended;theLawonEvaluation,ClassificationandSupportofFilms(No.
5224);theTradeMarkProtectionDecree(No.
556);theGeographicalIndicationsDecree(No.
555);theIndustrialDesignDecree(No.
554);thePatentRightsProtectionDecree(No.
551);theLawontheProtectionofPlantBreeder'sRightsforNewPlantVarieties(No.
5042);theSeedLaw(No.
5553);theLawontheProtectionofIntegratedCircuitTopographies(No.
5147);theAmendingLawofPatent,Design,GeographicalIndicationsandTradeMarkDecree(No.
4128);theLawAmendingtheDecree-LawsontheProtectionofPatent,IndustrialDesigns,GeographicalIndicationsandTradeMark(No.
5194);theLawfortheEstablishmentandFunctionsoftheTurkishPatentInstitute(LawNo.
5000);andtheTurkishCriminalCode(Articles334/1and336/1),thenewCommercialCode(Articles55/1(b-3)and(d),and56),andtheHumanMedicinalProductsLicensingRegulation(Article28),forensuringtheprotectionofundisclosedinformation.
Turkey'sintellectualpropertylegislationwasreviewedbytheWTOTRIPSCouncilinNovember2000.
TurkeyisasignatorytovariousIPRconventionsandtreaties(TableIII.
22).
AsintellectualpropertylawisoneofthenegotiatingchaptersintheEUaccessionprocess,anEU-TurkeyWorkingGrouponIntellectualPropertyRightshasbeenestablished.
TableIII.
22Membershipininternationalagreements,conventions,andtreaties,2010NameDateofmembershipParisConventionontheProtectionofIndustrialProperty(1883)10October1925BerneConventionfortheProtectionofLiteraryandArtisticWorks(1886)1January1952ConventionestablishingWIPO(1967)12May1976RomeConventionfortheProtectionofPerformers,ProducersofPhonogramsandBroadcastingOrganizations(1961)8April2004NiceAgreementconcerningtheInternationalClassificationofGoodsandServicesforthepurposeofRegistrationofMarks(1957)1January1996PatentCo-operationTreaty(1970)1January1996ViennaAgreementEstablishinganInternationalClassificationoftheFigurativeElementsofMarks(1973)1January1996StrasbourgAgreementConcerningtheInternationalPatentClassification(1971)1October1996BudapestTreatyontheInternationalRecognitionoftheDepositofMicro-OrganismsforthePurposeofPatentProcedure(1977)30November1998ProtocolrelatingtoMadridAgreement(1996)1January1999LocarnoAgreementEstablishinganInternationalClassificationforIndustrialDesigns(1968)30November1998PatentLawTreaty2June2000EuropeanPatentConvention(1973)1November2000HagueAgreement(InternationalDepositofIndustrialDesigns)1January2005TrademarkLawTreaty1January2005SingaporeTreatyontheLawofTrademarks28March2006WIPOCopyrightTreaty28November2008WIPOPerformancesandPhonogramTreaty28November2008Source:InformationprovidedbytheTurkishauthorities.
ThemaininstitutionsresponsibleforintellectualpropertymattersaretheDirectorateGeneralofCopyrightsandCinemaintheMinistryofCultureandTourismforcopyrightandrelatedrights;theTurkishPatentInstituteforpatents,trademarks,geographicalindications,designs,andchiptopographies;theMinistryofFood,AgricultureandLivestockforplantbreeders'rights;theDirectorateGeneralofCustomsintheMinistryofCustomsandTradeforbordermeasures;andtheMinistryofJusticeforenforcementbeforethecourts.
TheIntellectualandIndustrialPropertyCoordinationBoard,setupin2008,isconvenedtwiceayeartodevelopstrategiesfortheimplementationoftheIPRregimeandimprovecoordinationbetweentherelevantinstitutions.
SinceitslastTPR,TurkeyhasamendedtheLawonIntellectualandArtisticWorkstoharmonizeitsprovisionswiththenewTurkishCriminalCodeandtheCriminalProcedureCode(in2008)andlaunchedstudiestoamendthelawfurthertoeliminateremainingdiscrepancieswiththeEUacquis.
RegulationshavealsobeenissuedregardingtheestablishmentofajointIPRdatabase,amendingthebanderoleimplementationsystem;andamendingthecertificationsystemforenterprises'disseminationanddistributionofintellectualandartisticworks.
Acircularontheuseoflicensedsoftwareinpublicinstitutionshasalsobeenissued.
Intheareaofenforcement,Turkeyhas22specializedIPRcourts(11civilcourtsand11criminalcourts).
Inaddition,generalcivilandcriminalcourtsarecompetenttodealwithIRPcasesincitieswheretherearenospecializedIPRcourts.
InNovember2008,theGeneralDirectorateforCriminalAffairsattheMinistryofJusticeannouncedthatpublicprosecutors'officeshandlingmorethan500IPRinvestigationsannuallyshouldestablishaspecialbureauresponsibleforsuchinvestigations.
Specialbureaushavenowbeensetupinsevencities(Adana,Bakirkoy,Beyoglu,Kadiky,Kartal,Istanbul,andIzmir).
In234ofthe707publicprosecutors'officesinTurkey,oneormoreprosecutorshavebeenassignedforIPRinvestigations.
ThespecializedIPRcourtsarebeinglinkedtotheTurkishJudiciaryInformationSystem(UYAP)network.
Acopyrightautomationsystem(TEHAKSIS)hasbeenestablishedtoprovideonlineaccesstotheNon-periodicalBanderoleAutomationSystem,theCertificationSystem,theProducersCertificateSystem,andtheOptionalRegistrationSystem,tofacilitatetheexchangeofinformationbetweenrelatedinstitutions.
Authoritytograntonlineaccesshasbeendelegatedtothe(81)provincialCulturalDirectoratesandtheNationalPolicetoacceleratetheinspectionsoftheprovincialInspectionCommissions.
Furthermore,theMinistryofJusticeandtheMinistryofCultureandTourismsignedaprotocoltointegratetheUYAPandTEHAKSISinformationsystemsinDecember2010.
Aftercompletionoftheintegration,thetrialprocessesincasesinvolvingintellectualpropertyrightsareexpectedtobeshortened.
In2008,Turkey'sspecializedcriminalIPRcourtsconcluded7,762cases.
Theaveragetimespanfromreceiptofacaseuntiltherenderingofadecisionwas500days.
ThespecializedcivilIPRcourtsconcluded2,765casesin2009,ofwhich1,279wereeitherfullyorpartiallyaccepted.
TheaveragetrialspaninthespecializedcivilIPRcourtswas613days,rangingfrom286daysintheBakirkycivilcourtto1,137daysintheIstanbul2ndcivilcourt.
TheTurkishenforcementauthoritiesnormallyconductsome3,000-4,000operationsperyearinvolvinginfringementsofintellectualpropertyrights.
Thevolumeofconfiscatedpiratedmaterialswasabout24-25millionpiecesin2009and2010.
Mechanismsforthecollectivemanagementofrightshavebeenfurtherdeveloped.
FourcollectingsocietiesinthemusicsectorsignedacooperationagreementinFebruary2007,andsubsequentlyconcludedcollectiveagreementswithprofessionalassociationsrepresentingtheusersforthelicensingofmusicalworksinhotels(March2008)andinbroadcasts(November2008).
TheUnitedActorsCollectingSociety(BIROY)wasformedinOctober2009.
SevencollectingsocietiesoperatinginthecinemabusinessfoundedtheHeadquarterofCollectingSocietiesofCinemainJanuary2011.
RecognizingthatTurkeyhasmadeprogressinthefightagainstabuseofintellectualpropertyrights,TurkeywasmovedfromtheU.
S.
Special301PriorityWatchListtotheWatchListin2008.
However,notingthatcounterfeitingandpiracyremainswidespread,Turkeyisbeingurgedtomakefurtherefforts.
TheEuropeanCommissionnotesthatfurtherworkisrequired,includingtheadoptionoflegislativeamendmentstoprovidedeterrentcriminalsanctions,alawonIPRenforcementproceduresinlinewiththeEUEnforcementDirective,andthatthecivil,criminalandadministrativeIPRprocedures,includingex-officiomeasurestocombatpiracyandcounterfeiting,shouldbestrengthened.