Free Trade Zones of Türkiye - Part III
Source: Export Promotion Center of Türkiye - Trade Point Ankara
Statistical Information about Turkish Freezones
Criteria
to Assess Operating Licence Applications - cont. Firms
that reside in Türkiye must maintain free zone activities through their
branches in a free zone. In this case, the capital structure and
profitability of the firm shall be put into consideration during examination
of the last three years’ balance-sheets.
3) In
order to start commercial activities, a branch office which intend to
operate in a free zone should be allocated its own capital and have its own
operational expenses envisaged separately. Capital in cash and operating
expenses stated in the Operating Licence Application Form must be
transferred from Türkiye to a free zone in compliance with the Foreign
Exchange Legislation.
4) An
Entry Permit should be obtained from Free Zone Directorate for services to
be rendered in a free zone. However; if an Operating Licence on services is
granted, then they are only allowed to operate within the borders of the
free zone.
5) In
principle, users should employ Turkish personnel, but foreign personnel can
also be employed if the work requires a special education or experience.
6) The
Operating Licence application of real or legal persons whose Operating
Licences are cancelled as a result of their operations against the
provisions of this Legislation and applications of persons who are partners
of those firms will not be accepted.
Carrying Out Free Zone Activities
Free
zone operations and activities will be carried out either by free zone
branches of the firms or firms to be established solely in a free zone within
the framework of the following principles.
1)
Since, free zone firms must have separate accounting records and capital
allocations from their head offices, applicant firms currently carrying out
their commercial activities in Türkiye must perform their free zone
operations through their free zone branches. Users currently operating in a
free zone but has not formed a free zone branch yet, must apply to the
Undersecretariat within six months from the date of issue of this circular
together with the decision taken by its related body and the Trade
Registration Gazette in which this decision is published.
2)
Persons resident in Türkiye are allowed to establish firms in a free zone
provided that they will solely operate in a free zone. In this case, firms
are obliged to apply to the Undersecratariat with the draft of their
Fundamental Contract before the establishment of the firm. Following the
ratification of the Fundamental Contract by the Undersecratariat and
granting the Operating Licence, firms will not be allowed to operate in any
other parts of Türkiye, establish branches or make amendments to the
Fundamental Contract unless the Undersecretariat approves. These issues
must be stated clearly in the Fundamental Contract. Users which are currently
in operation and who has established a firm in a free zone in any way must
submit the Turkish Trade Registration Gazette in which the Fundemental
Agreement is published to the Undersecratariat to make necessary
modifications within six months after the date of issue of this Circular.
3)
Firms which perform their free zone operations through their branches and
reside in Türkiye are allowed to move their head offices to free zones
provided that they liquidate all of their operations in Türkiye. Applications
in this regard must be made to the Undersecretariat by submitting the
decision taken by their authorized body. If this request is found
appropriate following the examination of the matters related to the amount
of goods sold abroad, total trade volume, the amount of capital in cash
brought into the free zone, the amount of income transferred from the free
zone and alike, the Fundamental Contract amendments could be made within
the framework of the Article 2. In this case, within six months after the
publication of the fundamental contract in the Trade Registration Gazette,
the closure of the commercial books, trade registration and the accounts in
the related tax administration must be certified to the Undersecretariat.
Firms which have moved their head offices into a free zone before the issue
of this circular, must submit all the above mentioned information and
documents within 6 months after the date of issue of this circular.
Cancellation
If it
is proved that the conditions specified in the Operating Licence
Application Form are not met, and the required information and documents
are not submitted and applications are not made, the provisions of
Cancellation of the Free Zones Implementation Regulation shall be
activated. Top
Statistical Information about Turkish Freezones As end
of 1998, the trade volume of 12 operational free zones reached to
7.717.764.000 USD showing an increase of 40 % as compared to 1997. At the
end of 1998, exports from Türkiye to free zones reached to 875.643.000 USD,
11 % of free zones’ total trade volume and imports from free zones to
Türkiye were 3.004.772.000 USD, 39 % of total trade volume.
According
to the breakdown of the trade volume by countries as of 1998, EU
constitutes 25 per cent, other OECD countries 10 per cent, other European
countries 0,5 per cent, CIS countries 6 per cent, Islamic Countries 3,5 per
cent, other countries 5 per cent and Türkiye 50 per cent. As to the
breakdown of trade volume by sectors, industrial products constitutes 85,8
per cent, agricultural and livestock products 14 per cent, and mining
products 0,2 per cent. As of end of 1998, there are 2.183 firms in Turkish
Free Zones of which 352 are foreign and 1.831 are local. Approximately
12.650 workers are employed in these zones.
I-
Mersin Freezone Adjacent to Mersin Port, Mersin Free Zone has been
established on a 776.000 square meters of public estate. Commercial
activities have been performed since the beginning of 1988 and the zone is
operated by MESBAT- Mersin Free Zone Operator Inc. As of end of 1998, the
volume of trade realized by zone users has reached to 1.697.068 USD. There
are 656 licensed firms in the zone of which 122 are foreign. 393 firms are
operating in the field of purchasing and selling while 57 firms in the
field of production, 61 firms storing, 110 firms renting and others in the
fields of banking, insurance and repair-maintenance. Top
