Freezone Law in Türkiye
Source:
Official
Gazette - Jun 15th, 1985 Law No: 3218; Approved: 6 June 1985; Issued: 15
June 1985.
Objectives and Content Authority Definitions Activities Principles related to the
Organisation of the Zone Exemptions and Incentives
The FZ's Fund Goods in the Free
Zones Foreign
Exchange and Services Labour and Social Security
Objectives
and Content Article
1: This law encompasses the matters related to the establishment of free
zones; the determination of their location and boundaries; their
management; the scope of their activities; their operation; and the
establishment of the installations and facilities within the zone; with the
objective of increasing export-oriented investment and production in Turkey
and accelerating the entry of foreign capital and technology; procuring the
inputs the economy in an economic and orderly fashion; and increasing the
utilisation of external finance and trade possibilities.
Authority Article 2: The Council of Ministers is empowered
with the authority to determine the location and the boundaries of the free
zones. The Council of Ministers grants permission for the establishment and
operation of free zones to public institutions and agencies, resident or
non-resident real persons or legal entities.
Definitions Article 3: In the implementation of this Law:
a)"Operator" signifies the public institution and agency; the
resident and non-resident real persons or legal entities operating the free
trade zone. b)"User" signifies the real and legal person bearing
an Operating License and having a specific place of business within the
free trade zone. c)"Foreign Exchange" refers to all currencies,
or all types of accounts or bills, considered as being convertible by the
Central Bank of the Republic of Turkey. Top
Activities Article 4: All kinds of industrial, commercial
and service activities approved by the Economic Affairs Supreme
Co-ordination Council may be carried on within the free zones. Any
authority regarding prices, quality and standards granted to public
institutions and agencies by laws or other legislation will not be valid in
the free zones. Top
Principles
related to the Organisation of the Zone Article 5: Land and facilities needed within the
declared free zones can be acquired pursuant to the provisions of the
Expropriation Law. Domestic or foreign real persons or legal entities may
be active within the free zones on the condition that an operating license
has been granted to them by the Prime Ministry, Undersecretariat for
Foreign Trade. All other permits and licenses regarding the use of land as
well as the design, construction and utilisation of buildings and
installations within the free trade zones shall be issued and supervised by
the regional directorate. Security services for the free zones shall be
provided by the police. Top
Exemptions
and Incentives Article
6: The free zones are deemed to be outside of the customs borders.
Legislative provisions pertaining to taxes, levies, duties and to customs
and foreign exchange obligations are not applicable in these zones. During
the investment and production stages of their activities, operators and
users can be qualified for incentives to be determined by the Council of
Ministers. Income and revenues generated in the free zones through
activities of real persons and legal entities with full or limited tax
liability in Turkey, are exempt from income and corporate taxes, provided
that the transfer of such income and revenues into Turkey is documented
pursuant to foreign exchange regulations. Top
The FZ's
Fund Article
7: In order to establish, develop and maintain the free zones, to support
research and training activities, to construct social facilities, to
provide incentives for users and to promote the purchase of goods from
Turkey, a "Free Zones Establishment and Devel-opment Fund" has
been established at the Central Bank of Republic of Turkey. Fund resources
are as follows: a) Fees paid for operating licences and permits b) Fees
paid in advance amounting to 0.5 percent of the CIF value and the FOB
value, respectively, of goods entering and leaving the zone. c) Payments
specified in the contracts made with real persons and legal entities
managing the free trade zone. d) Other income Goods destined to the free
zone that originate from Turkey and goods utilised during the investments
and construction stages, as well as instruments, tools and equipment
brought into the free zone for repair and maintenance purposes, are exempt
from the payments specified in paragraph (b) of this Procedures and
principles governing Fund collection and disbursements are specified by
regulations. This Fund is administered by the Prime Ministry. The Fund is
audited by the Superior Audit Council of the Prime Ministry. Top
Goods in
the Free Zones Article
8: Trade conducted between the free zones and other regions of Turkey is
subject to the foreign trade regime. Upon request, goods originating from
Turkey of less than $ 500 value may be exempted from export procedures. The
foreign trade regime is not applicable for trade conducted between the free
zones and other countries or free zones.
Foreign
Exchange and Services Article
9: All payments related to free zone activities are made in the form of
foreign exchange. The Council of Ministers may decide that payments be also
made in the form of Turkish Lira. Shipping and port services in the free
zones are provided either by the operator or assigned to public
institutions and agencies or to real or legal persons. Top
Labour
and Social Security, Repealed and Inapplicable Provisions, Regulations,
Labour and Social Security Provisions Article 10: Foreign managers and qualified
personnel can be employed by firms operating in the free zones. Related
principles are specified by the governing statutes. The provisions of the
social security regulations of the Republic of Turkey are applied in the
free zones. Top
Free Zone Governing Regulation Article
13: Matters in this Law of which regulation has been left to the governing
statutes as well as the organisation, duties, authority and
responsibilities of those operators who will be active in the free zones,
and the granting and the cancellation of the operating licenses that will
be provided to these operators and users; the maintenance of their
industrial and commercial registers; the payments they will make to the
Fund; the principles governing the conduct of activities in the free zone,
the zone entry permits and identity cards permission for residence; and
work principles and other matters pertaining to the operation of the free
zones will be determined by the governing regulation. Interim Article 1:
For a period of 10 years following the commencement of operations in the
free zones, the strike, lock-out and mediation provisions of Law No. 2822,
dated May 5, 1983, shall not be applicable in the zones. However, any
disputes arising within the context of collective bargaining during this
period shall be resolved by the Supreme Arbitration Council. Top
