WORLD TRADE
ORGANIZATIONG/STR/N/4/TUR
16 December 1998
(98-5071)
Working Party on
State Trading EnterprisesOriginal:  English
STATE TRADING
New and Full Notification Pursuant to Article XVII:4(a) of the GATT and
Paragraph 1 of the Understanding on the Interpretation of Article XVII
TURKEY
The following communication, dated 9 December 1998, has been received from the
Permanent Mission of Turkey.
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I. ENUMERATION OF STATE TRADING ENTERPRISES
A. TURKISH STATE MONOPOLY (TEKEL )
HS Code Description of Goods
22.03 Beer made from malt
22.04 Wine of fresh grapes, including fortified wines;  grape must other than
that of heading No. 20.09 (excluding 2204.10 and 2204.30).
2205 Vermouth and other wine of fresh grapes flavoured with plants or
aromatic substances.
22.06 Other fermented beverages (for example, cider, perry, mead) mixtures of
fermented beverages and non-alcoholic beverages not elsewhere
specified or included.
22.07 Undenatured ethyl alcohol of an alcoholic strength by volume of 80 per
cent vol. or higher;  ethyl alcohol and other spirits, denatured, of any
strength.
22.08 Undenatured ethyl alcohol of an alcoholic strength by volume of less than
80 per cent vol.;  spirits, liqueurs and other spirituous beverages
(excluding 2208.30).G/STR/N/4/TUR
Page 2
B. TURKISH RED CRESCENT
HS Code Description of Goods
1211.90.95.00.14 Cinchona bark
2827.60.00.30.00 Potassium iodide
2939.21,29 Alkaloids of cinchona and their derivations
II. REASON AND PURPOSE FOR INTRODUCING AND MAINTAINING STATE
TRADING ENTERPRISES
A. TURKISH STATE MONOPOLY (TEKEL)
1. The main purpose of the Enterprise is to reduce the negative consequences of alcohol
consumption by controlling flow of alcoholic beverages and spirits.  The Enterprise which has a
monopoly right does not seek making profit on behalf of the Government.  Its purchase policy is
maintained by taking into consideration the domestic demand.  Also, the most important function of
the Enterprise is to prevent illegal trade and illegal profits by effective control over the trade ofalcohol and alcoholic beverages.
2. The Enterprise (TEKEL) has exclusive rights with regard to importation and domestic sale of
certain spirits and beverages containing alcohol and ethyl alcohol (liquors and other spirituous
beverages, wine and fruitwine, beer and ethyl alcohol) and production of some alcoholic beverages
other than beer, wine and fruitwine.  On the other hand, TEKEL does not have monopoly rights on theimportation of whisky and natural sparkling wine (Law No. 4250 of 1942).
B. TURKISH RED CRESCENT (TRCS )
1. The purpose of the exclusive right granted to the TRCS to import certain goods listed in
section I.B is to enable the Institution to fight the diseases of Malaria and Syphilis.
2. TRCS which is a voluntary, non-profit aid organization in the field of health has exclusive
rights to import cinchona bark, potassium iodide and alkaloids of cinchona and their derivations into
Turkey (Law No. 2767 on the Drugs for Malaria and Syphilis of 1935).
III. DESCRIPTION OF THE FUNCTIONING OF STATE TRADING ENTERPRISES
A. TURKISH STATE MONOPOLY (TEKEL )
• The only privilege granted to TEKEL is stated in Section II.
• This Enterprise does not have any privilege in its commercial activities compared with
other private firms.
• The importation of natural sparkling wine and whisky by importers and the exportation of
malt and wine by their producers are free (Law No. 4250).
• The volume of import/export is determined with respect to the domestic/foreign demand.
• The export prices are determined by TEKEL according to:
- The cost of production and,- The tax rates on alcoholic beverages in the importing countries.G/STR/N/4/TUR
Page 3
• The domestic sales prices of imported goods are determined by TEKEL according to:
- The CIF prices of imported beverages,- The tax rates on these products,
- The domestic sale price of like products for certain beverages.
• TEKEL does not have any long-term contractual obligations.  There is no governmental
influence on the import and export level of this Enterprise.
B.
TURKISH RED CRESCENT (TRCS )
• TRCS is a voluntary aid organization which has been performing for 130 years.  Its
activities are subject to the commercial provisions of private law.  TRCS carries outcertain humanitarian and health missions during ordinary and extraordinary
circumstances.
• TRCS has no further privileges other than those cited in Section II.
• The volume of importation is determined according to the domestic needs.
• The domestic sale prices of imported goods are determined by TRCS as the sum of cost
price and a reasonable amount of profit.
IV. STATISTICAL INFORMATION
See attached tables.G/STR/N/4/TUR
Page 4TABLE 1.A
STATE TRADING:  TURKISH STATE MONOPOLY (TEKEL)
STATISTICAL INFORMATION:  IMPORTS
Description of
products (incl. HS
Nos.)Total quantity imported
(Thousand lts)Total quantity imported by
state trading enterprises
(Thousand lts)Average import price
(US$/Lt)Average representative
domestic sales price
(US$/Lt)National production
(Thousand lts)
1995 1996 1997 1995 1996 1997 1995 1996 1997 1995 1996 1997 1995 1996 1997
22.03  Beer 1.8 84.5 417.9 1.8 12.6 98.8 1.28 1.28 1.32 4.45 3.41 3.89 642,000 668,000 735,880
22.04  Wine 27.8 168.1 174.4 27.8 52.4 66.9 20.19 5.67 1.66 n.a. 17.51 8.65 36,792 40,021 46,335
22.05  Vermouth etc. 30.0 22.8 14.4 30.0 22.8 14.4 2.64 3.83 2.59 n.a. n.a. n.a. 274 246 245
22.06  Otherfermented beverages- 0.9 - - - - - 2.00 - n.a. n.a. n.a. n.a. n.a. n.a.
22.07  Alcohol 38.9 2,807.0 15,687.0 22.4 4.0 2,719.0 45.28 6.94 0.66 1.30 1.57 1.86 18,293 15,855 9,952
22.08  Other
alcoholic drinks2,127.0 2,624.0 2,332.0 2,126.0 974.4 439.6 5.71 5.80 6.04 16.33 16.46 16.24 79,895 89,330 85,992
n.a.:  Not availableG/STR/N/4/TUR
Page 5TABLE I.B
STATE TRADING:  TURKISH RED CRESCENT SOCIETY (KIZILAY)
STATISTICAL INFORMATION:  IMPORTS
Description of
products (incl. HS
Nos.)Total quantity imported Total quantity imported by state trading
enterprise Average imported price (FOB)Average representative domestic
sales price
1996 1997 1998 1996 1997 1998 1996 1997 1998 1996 1997 1998
1211.90.95.00.14
C i n c h o n a  b a r k - --- - - ---- - -
2827.60.00.30.00Potassium iodide15,452 kg. 41,365 kg. 10,334 kg. 15,452 kg. 41,365 kg. 10,334 kg. 18.63
US$/kg.17
US$/kg.22.38
US$/kg.21
US$/kg.21
US$/kg.21
US$/kg.
2939.21.11.00.00
Quinine HCL- --- - - ---- - 5 4
US$/kg.
2939.21.90.00.00QuinidineArabogalatoneSulfate280 kg. 150 kg. - 280 kg. 150 kg. - 1,930
FFR/kg.1,930
FFR/kg.-2 , 4 2 5
FFR/kg.2,425
FFR/kg.-
2939.21.90.00.00
Quinidine Sulfate200 kg. 200 kg. 100 kg. 200 kg. 200 kg. 100 kg. 235 DM/kg. 235
DM/kg.235 DM/kg. 300
DM/kg.300
DM/kg.300
DM/kg.
2939.29.00.00.11
Quinidine
PhenyethylBarbiturate240 kg. 200 kg. - 240 kg. 200 kg. - 1,400
FFR/kg.1,400
FFR/kg.-1 , 8 0 0
FFR/kg.1,800
FFR/kg.-G/STR/N/4/TUR
Page 6TABLE II
STATE TRADING:  TURKISH STATE MONOPOLY (TEKEL)
STATISTICAL INFORMATION:  EXPORTS
Desc. of
products
(incl. HS
Nos.)Total quantity exported
(Thousand lts.)Total quantity exported by state
trading enterprise
(Thousand lts.)Average procurement price
(US$/Lt.)Average representative
domestic sales price
(US$/Lt.)Average export priceNational production
(Thousand lts.)
1995 1996 1997 1995 1996 1997 1995 1996 1997 1995 1996 1997 1995 1996 1997 1995 1996 1997
22.03
Beer 62,267.0 55,902.0 42,224.0 - - - 0.26 0.27 0.49 0.47 0.57 0.59 - - - 642,000 668,000 735,880
22.04Wine 2,972.0 3,492.0 10,817.0 570.2 466.1 7,995.0 0.60 0.60 0.48 0.85 0.99 1.30 1.19 1.01 0.37 36,792 40,021 46,335
22.05Vermouthetc.8.2 249.0 37.3 - - 26.4 0.89 0.79 0.91 1.41 1.62 1.96 - - 2.56 274 246 245
22.06
Otherfermented
beverages7 9 . 1 2 0 . 9 2 1 . 3---------------
22.07
Alcohol 795.1 48.9 1,622.0 99.2 - 30.6 0.70 1.11 1.19 1.30 1.57 1.86 0.75 n.a. 0.73 18,293 15,855 9,952
22.08Otheralcoholicdrinks3,013.0 2,929.0 2,316.0 1,970.6 1.231.2 1,772.6 1.22 1.25 1.45 5.10 5.80 6.88 3.38 6.60 2.90 79,895 89,330 85,992G/STR/N/4/TUR
Page 7TABLE III
STATE TRADING:  TURKISH STATE MONOPOLY (TEKEL)
STATISTICAL INFORMATION:  DOMESTIC ACTIVITIES
Description of
products (incl.
HS Nos.)Domestic purchases by state
trading enterprise
(Thousand lts)National production
(Thousand lts)Domestic sales by state trading
enterprise
(Thousand lts)National consumption
(Thousand lts)
1995 1996 1997 1995 1996 1997 1995 1996 1997 1995 1996 1997
22.03  Beer n.a. n.a. n.a. 642,000.0 668,000.0 735,880.0 8,846.0 8,031.0 6,041.0 647,000 673,000 731,041
22.04  Wine n.a. n.a. n.a. 36,792.0 40,021.0 46,335.0 14,054.0 14,147.0 11,551.0 31,750.0 31,968 35,408
22.05Vermouth etc. n.a. n.a. n.a. 274.0 246.0 245.0 282.0 245.0 249.0 282 245 249
22.06 Otherfermented
beveragesn.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a n.a. n.a.
22.07 Alcohol 32,234.0 11,258.0 14,727.0 18,293.0 15,855.0 9,952.0 19,006.0 18,522.0 11,671.0 19,006 18,552 11,671
22.08 Other
alcoholic
drinksn.a. n.a. n.a. 79,895.0 89,330.0 85,992.0 84.157.0 83,404.0 79,277.0 84,157 83,404 79,277
n.a.:  Not available
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