Turkey: The Advantages And The Criterias Of Being An International Trading Company

Last Updated: 24 May 2017
Article by Hakki Cihan Turk

 In the article 95/7623, 3rd Statement of the Export Regime Decision dated 22/12/1995,  Export Regime Decision,Acquiring the status of International Trade Company, witdrawal of the status and the responsibilities of International Trading Company, are arranged under "International Trading Company"  (Export 2004 / 12) .

  • At least 2 million TL of paid-in stocks
  • customs declaration in the previous calendar year, at least 100 million US Dollars or equivalent for exports have to been declared.

Companies that are fit to these conditions must fill out the application form we attach in order to acquire the status of International Trade Company and must apply to the Undersecretariat of Foreign Trade (General Manager of Exports). The files and documents that are submitted shall be deemed correct until otherwise. The companies that are not included in the decision regarding the International Trade Companies that are in effect in the year in which they are held, in case of their requests, as a result of the examination involving going back 12 months as of the date of application, the International Trade Company Status can be given. Under the examination of Undersecretariat of Foreign Trade the companies determined to have the necessary conditions will be given the status of "International Trade Company" and will published in the Official Gazzete.

The Adcantages of International Trade Company's are;

1.              : Despite the fact that they are not manufacturers, they can benefit from the deferral-cancellation application in terms of tax legislation,

2.              Only a 4% collateral indication is sufficient to retrieve the VAT of exports,

3.              To be able to claim the refund without having received the customs declaration confirmation for VAT refunds below 4000 TL

4.              To secure the finance of exports, benefit the credits from Eximbank without an intermediary bank, which provides a lower interest rate,

5.              In relation to Customs LEgistration; benefit from certain exceptions such as not seeking a certain number of employment conditions to obtain an approved person status, not looking for a manufacturer condition, not investigating export import performance criteria, searching for a part of the documents presented to customs,

6.              Prioritization of State aid for exports,

7.              The demand for deposit is lower at imports made under the processing regime.

For Export's State aids, export incentives and export grants are carried out by Ministry of Economy and General Secretariat of Exporters' Unions. To give an example of these state aids;

  • For increasing competition power in international markets, analyses reports for environmental documents, human life and property safety and security in order to ensure compliance of environment, quality and human life below expenditure on agricultural products analysis reports are  50% and up to $ 25,000 per document,
  • Up to $ 120.000 per year in the rate of 50% to 90% of the rental expenses of the offices,stores and warehouses that will be opened abroad for export purposes,
  • Advertising and promotional expenditures abroad for export purposes can range from 60% to 90% annually up to $ 250,000,
  • Expenses related to visits to abroad markets research are 70% per trip and up to $ 7,500,
  • In order to create action plans with foreign market entry strategies, expenses related to sector, country, foreign company or brand focused reports made by international organizations and consultancy services for foreign company purchases, from 60% to 75% for companies and up to a maximum of $ 200,000 per year
  • For non-costumers, membership fees for e-commerce sites are 70% and up to $ 10,000
  • In order to develop clusters and increase the international competitiveness of SME's, by co-operation companies ,Up to 75% of expenses, maximum $ 1,200,000 per project for education,consultancy, foreign market research trips and purchase delegations, with the participation of at least 10 companies,

Are supported; and that these are supported by the Grant and Price Stability Fund a way of  gratuitous donation. 

LEGISLATION AND INSTITUTION

Communique For International Trade Company Status  (Export 2004 / 12)

Statement 1:  Paid corporate funds must be at least 2 million YTL. (2 trillion TL) in the previous calendar year on customs declaration basis, having at least 100 million US Dollars or equivalent of actual exports (excluding transit and free export) joint-stock companies, "International Trade Company" status may be given every year, for applicants until the last day of January, or such status may be renewed for companies already holding International Trade Company Status.

Companies that meet the requirements of the first paragraph of this article, in order to be able to obtain the status of International Trade Company, they are required to fill in the application form attached to the annex and apply to the Undersecretariat of International Trade (General Manager of Exports) together with the documents mentioned in the form. The information and documents submitted shall be deemed correct until otherwise.

The companies that are not included in the decision regarding the International Trade Companies that are in effect in the year in which they are held, in case of their requests, as a result of the examination for exports involving going back 12 months as of the date of application, the International Trade Company Status can be given. Under the examination of Undersecretariat of Foreign Trade the companies determined to have the necessary conditions will be given the status of "International Trade Company".

Statement 2:

Companies that have the necessary conditions determined by the Undersecretariat of International Trade (General Manager of Exports) will be given the status of "International Trade Company" and will published in the Official Gazzete.

The status of the International Trade Company shall be valid until the publication of the decision on the International Trade Companies of the following year from the date of its publication.

In the article 95/7623, 3rd Statement of the Export Regime Decision dated 22/12/1995,  Export Regime Decision,Acquiring the status of International Trade Company, witdrawal of the status and the responsibilities of International Trading Company, are arranged under "International Trading Company"  (Export 2004 / 12) .

  • At least 2 million TL of paid-in stocks
  • customs declaration in the previous calendar year, at least 100 million US Dollars or equivalent for exports have to been declared.

Companies that are fit to these conditions must fill out the application form we attach in order to acquire the status of International Trade Company and must apply to the Undersecretariat of Foreign Trade (General Manager of Exports). The files and documents that are submitted shall be deemed correct until otherwise. The companies that are not included in the decision regarding the International Trade Companies that are in effect in the year in which they are held, in case of their requests, as a result of the examination involving going back 12 months as of the date of application, the International Trade Company Status can be given. Under the examination of Undersecretariat of Foreign Trade the companies determined to have the necessary conditions will be given the status of "International Trade Company" and will published in the Official Gazzete.

The Adcantages of International Trade Company's are;

1.              : Despite the fact that they are not manufacturers, they can benefit from the deferral-cancellation application in terms of tax legislation,

2.              Only a 4% collateral indication is sufficient to retrieve the VAT of exports,

3.              To be able to claim the refund without having received the customs declaration confirmation for VAT refunds below 4000 TL

4.              To secure the finance of exports, benefit the credits from Eximbank without an intermediary bank, which provides a lower interest rate,

5.              In relation to Customs LEgistration; benefit from certain exceptions such as not seeking a certain number of employment conditions to obtain an approved person status, not looking for a manufacturer condition, not investigating export import performance criteria, searching for a part of the documents presented to customs,

6.              Prioritization of State aid for exports,

7.              The demand for deposit is lower at imports made under the processing regime.

For Export's State aids, export incentives and export grants are carried out by Ministry of Economy and General Secretariat of Exporters' Unions. To give an example of these state aids;

  • For increasing competition power in international markets, analyses reports for environmental documents, human life and property safety and security in order to ensure compliance of environment, quality and human life below expenditure on agricultural products analysis reports are  50% and up to $ 25,000 per document,
  • Up to $ 120.000 per year in the rate of 50% to 90% of the rental expenses of the offices,stores and warehouses that will be opened abroad for export purposes,
  • Advertising and promotional expenditures abroad for export purposes can range from 60% to 90% annually up to $ 250,000,
  • Expenses related to visits to abroad markets research are 70% per trip and up to $ 7,500,
  • In order to create action plans with foreign market entry strategies, expenses related to sector, country, foreign company or brand focused reports made by international organizations and consultancy services for foreign company purchases, from 60% to 75% for companies and up to a maximum of $ 200,000 per year
  • For non-costumers, membership fees for e-commerce sites are 70% and up to $ 10,000
  • In order to develop clusters and increase the international competitiveness of SME's, by co-operation companies ,Up to 75% of expenses, maximum $ 1,200,000 per project for education,consultancy, foreign market research trips and purchase delegations, with the participation of at least 10 companies,

Are supported; and that these are supported by the Grant and Price Stability Fund a way of  gratuitous donation. 

LEGISLATION AND INSTITUTION

Communique For International Trade Company Status  (Export 2004 / 12)

Statement 1:  Paid corporate funds must be at least 2 million YTL. (2 trillion TL) in the previous calendar year on customs declaration basis, having at least 100 million US Dollars or equivalent of actual exports (excluding transit and free export) joint-stock companies, "International Trade Company" status may be given every year, for applicants until the last day of January, or such status may be renewed for companies already holding International Trade Company Status.

Companies that meet the requirements of the first paragraph of this article, in order to be able to obtain the status of International Trade Company, they are required to fill in the application form attached to the annex and apply to the Undersecretariat of International Trade (General Manager of Exports) together with the documents mentioned in the form. The information and documents submitted shall be deemed correct until otherwise.

The companies that are not included in the decision regarding the International Trade Companies that are in effect in the year in which they are held, in case of their requests, as a result of the examination for exports involving going back 12 months as of the date of application, the International Trade Company Status can be given. Under the examination of Undersecretariat of Foreign Trade the companies determined to have the necessary conditions will be given the status of "International Trade Company".

Statement 2:

Companies that have the necessary conditions determined by the Undersecretariat of International Trade (General Manager of Exports) will be given the status of "International Trade Company" and will published in the Official Gazzete.

The status of the International Trade Company shall be valid until the publication of the decision on the International Trade Companies of the following year from the date of its publication.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions