How is The Export Regime in Turkey?

How is The Export Regime in Turkey?	Turkey has been implementing an export-oriented strategy since 1980. The basic objective of this strategy is to constitute an outward oriented economic structure in the framework of free market economy and to be integrated with world markets.

With this new strategy, export intensive measures consisting of various supportive components, arrangements directed to the foreign trade liberalization.

In addition to liberal arrangements made to improve exports, some support programs came into effect. The main facilities provided for the exporters were as follows: corporate tax exemption, tax refund, premium to the Resource Utilization and Support Fund, subsidies obtained from the Support and Price Stabilization Fund. However, the above mentioned supports have been gradually eliminated in accordance with our international commitments since the second half of 1980s.

On the other hand, with the establishment of the Turk Eximbank in 1987, supporting exports gained a new dimension. In this respect, in order to increase the competitive strength of the Turkish exporters in foreign markets, some credits and guarantee programs under the international commitments began to be applied to the sectors with high export potentials.

Related to particularly support of exports, policies of the foreign trade strategy that was set up under the conditions of 1980s have been reviewed and modified in view of the developments taken place in the world and Turkey in the 1990s. In this respect, State Aids prepared in compliance chiefly with the World Trade Organization and our international commitments were put into practice as of 01.06.1995.

The most significant phenomenon in Turkey’s foreign trade policy is the Customs Union established between the EU and Turkey as of 01.01.1996. This development initiated the duration needed for the legal infrastructural consistency of foreign trade strategy with the EU”s norms, and thus both import and export regimes have been made consistent with the regulations of the EU. Within the framework of the modifications made in the laws, the Export Support Regime applied until 1.1.1996 was modified in compliance with the Customs Code of the Community.

In place of the Export Support Regime applied in the framework of the Export Support Decision No. 94/5782 based on obtaining raw materials at world market prices, the Inward Processing Regime numbered 95/7615, published in the Official Gazette 31.12.1995,the newly Inward Processing Regime numbered 2005/8391 published in the Official Gazette 27/1/2005 and prepared as being parallel to the provisions of the Community Customs Code, entered into force as of 1.1.1996.

According to the modifications in the Export Regime, (article 4(e) of the Export Regulation published in the Official Gazette on 6 June 2006/26190), “an exporter” is defined as a person who is a member of the related Exporters” Association,

– a natural or legal person having a single tax number,

– joint- venture,

– consortium.

Export is the  exportation of goods, in compliance with the current Export Regulations, Customs Regulations,out of Turkey’s custom area or to the free trade zones or other ways of leaving country which can be accepted as an export by the Undersecretariat for Foreign Trade.

Types of exports are as follows:

(a) Registered Export

(b) Pre-licenced Export

(c) Exports by means of consignment

(d) Barter trade

(e) Exports without returns

(f) Exports through leasing (Subject to Customs Legislation)

All goods, other than those whose exportation is prohibited by laws, decrees and international agreements, can be freely exported within the framework of the Export Regime Decree.

However, within the framework of WTO rules, restrictions and prohibitions on exports may be imposed in case of market turmoil, scarcity of exported goods, in order to protect public safety, morals, health; flora and fauna, environment, as well as, articles bearing artistic, historical and archeological value.

The goods whose exportation is prohibited and subject to permit are listed in the Communique numbered 96/31.

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