WT/TPR/S/192 Trade Policy Review 
Page 26 
 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION  
1. Goods imported into Turkey may be subject to  various charges: customs taxes and levies 
(customs tariffs, and the mass housing fund levy); and internal taxes (excise duties also known as the 
Special Consumption Tax, the VAT, and the stamp duty). As a result of its participation in the 
customs union with the EC, Turkey has, since 1996, based its tariff on all industrial products and the 
industrial components of processed agricultural prod ucts (imported from third countries), on the EC 
common external tariff. Aside from the EC, Turk ey provides tariff preferences to EFTA member 
states, and under nine bilateral trade agreements; negotiations are continuing with several other 
countries. It is also part of the Euro-Mediterranean  Partnership aimed at establishing a free-trade area 
in the region by 2010.   
2. Turkey's tariff comprises ad valorem  rates, which apply to 97.9% of total lines, and non- ad 
valorem  rates (specific, mixed, compound, and variable duties), applied to 378 items at the HS 
twelve-digit level (284 in 2003). The average applied MFN tariff is substantially higher in agriculture 
than in other sectors: using the WTO definition, th e coverage is 47.6% on ag ricultural products, and 
5% on non-agricultural goods. Some 46.3% of the  tariff lines are bound.  The simple average bound 
rate is 33.9%, and the simple average applied MFN rate 11.6% in 2007; the ceiling bound rates leave 
Turkey ample margins for tariff incr eases. Moreover, the imposition of non- ad valorem  tariff rates 
does not ensure compliance by Turkey with  its WTO binding commitments made at ad valorem  rates.  
In addition to applied and bound tariffs, Turkey also mainta ins the so-called statutory tariff. 
3. The government still has an influence on the ec onomy, mainly through its control of public 
enterprises, although the implementation of its priv atization programme has been accelerated recently. 
Export promotion continues to be one of the main objectives of Turkey's trade regime. The incentives 
system comprises duty and tax concessions, finance, marketing assistance, and promotion. There are 20 free zones in Turkey (21 in 2003), and new arra ngements were made in February 2004 regarding 
the tax incentives provided under this regime. 
4. Since its last TPR in 2003, Turkey has redr afted or amended legi slation on safeguards, 
standards and technical regulations, and inte llectual property rights. Under the government 
procurement regime, supplies of Turkish origin are e ligible for price preferences of up to 15%. Import 
licences are maintained on tariff-quota administ ration, health, sanitary, phytosanitary and 
environmental grounds. The Competition Authority has developed a reputation as one of Turkey's 
most effective and best administered agencies, havi ng played an important role in moving it towards 
the competition-based and consum er-welfare-oriented economies. 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs procedures, clearance, and valuation 
5. The basic customs legislative framework in Tu rkey consists of Customs Law No. 4458 (as 
amended), and its Regulations.1 According to the authorities, the coordination between customs 
administration and other relevant authorities has im proved over the last few years through various 
protocols, and effectiveness in combating sm uggling and other customs-related problems has 
increased. Nonetheless, the main problems of Turkey's  customs service are in its administrative and 
operational capacity; coordination between customs and other relevant authorities, such as the 
                                                      
1 Customs Law No. 4458 replaced Customs Law No. 1615/1972 in February 2000. For a description of 
the main changes, see WTO (2003). Turkey WT/TPR/S/192 
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Ministry of Culture, the Turkish Patent Institute, Turkish police force, and intellectual property rights 
courts also needs to be further improved.2 Turkey is taking steps to align its customs legislation with 
the EC's acquis communautaire . In this regard, a new draft Cu stoms Law has been prepared and 
submitted to Parliament for approval. 
6. Turkey's customs procedures have been modern ized by the launch of GUMSIS (a customs 
security system, risk analysis process and expe rtise on anti-smuggling activities) in 2001, and the 
introduction in 2002 of BILGE (a system developed to carry out all real-time customs formalities).3 
The format of the Turkish customs declarati on has been aligned on the single administrative 
document (SAD) used for customs procedures in the EC.4 A EUR.1 or EUR.MED movement 
certificate is required for imports from non-EC  countries with which Turkey has free-trade 
agreements, and from EC countries for imports of  agricultural, and coal and steel products.5 The fee 
for the SAD is YTL 2.20. The customs authority may grant permission to simplify formalities and 
procedures (Simplified Procedure Authorization), including by waiving the requirement for some 
documentation.6  The use of a clearing agent is not compulsory. 
7. A summary declaration must be presented at the customs office before the end of the working 
day following the arrival of goods at Customs. This declaration, for imported and exported goods, 
contains all the information required for the identif ication of the goods; it has a predetermined layout, 
and can be found in Annex 9 of the Customs Regulations.7 The most common method used for 
summary declarations is BILGE; this requires a us er code and a password, which are provided by the 
customs office. 
8. Certain goods continue to be imported only thro ugh specialized customs offices. According to 
the authorities, the aim of su ch specialized offices is to, inter alia , preserve the quality standards of 
imports, and prevent tax smuggling. For example, the release for free circulation of motor vehicles, tractors, motorcycles, and their spare parts and accessories is carried out by Yesilkoy and Gebze 
Customs Directorates; textile products, by Halkal i, Atatürk Havaliman, Gemlik, Mersin, Izmir 
Denizli, Ankara, Kayseri, and Gaziantep Customs Di rectorates; and some solvents and petrochemical 
products, by Gebze Petrochemical Customs Director ate. Exceptional circumstances for importation of 
these products through other Directorates are defined in the legislation establishing such specialized 
customs directorates. 
9. Articles 23 to 31 of Customs Law No. 4458 provide for the determination of the value of 
goods for customs purposes.
8 The customs value of imported goods is the transaction value, that is, 
the price actually paid or payable for th e goods when sold for export to Turkey.9 All customs duties 
                                                      
2 European Commission (2006). 
3 To date (August 2007), 119 customs offices have been automated, and 99.9% of all customs 
transactions are carried out electronically. 
4 Traders can submit declarations through kiosks locat ed in the customs offices, or via internet, or from 
their offices through electronic data interchange (EDI) messages. 
5 Decision 1/98 of EC-Turkey Association Council,  and Agreement between Tu rkey and the European 
Coal and Steel Community (ECSC). 
6 The simplified procedures are based on Article 71 of Customs Law No. 4458, and Articles 20-61 of 
Customs Regulations and General Customs Notification (Customs Procedures No. 15). 
7 It is obligatory to attach the original manifest or bill of landing to the summary declaration. The 
Undersecretariat of Customs may allow the use of another internationally approved commercial or official 
document containing the details requir ed for the identification of goods. 
8 WTO document G/VAL/N/1/TUR/2 of 18 May 2000. 
9 The currency for customs value of goods is the new Turkish lira (YTL). Foreign currencies on 
invoices and other documents are converted into YTL using the Central Bank exchange rate on the date the customs debt occurs. WT/TPR/S/192 Trade Policy Review 
Page 28 
 
 
are computed on the c.i.f. value of the import.  If the transaction value cannot be determined, the 
customs value is to be calculated by proceedi ng through the basic methods set by the WTO Customs 
Valuation Agreement (CVA).10  Under paragraph 3 of Annex III of the CVA, Turkey has reserved 
indefinitely the right not to reverse the deductive and computed valuation methods at the importer's 
request.11 The customs value of perishable goods may be determined, at the request of the importer, 
under simplified procedures.12 
10. Import clearance generally takes a maximum of 24 hours (if all the required documents are in 
order), regardless of the mode of transport.  Import duties must be paid or guaranteed at the time of 
customs clearance. In the second quarter of 2007, physical inspection by Turkey's customs 
administration was carried out on 29% of total impor ts and 11% of total expor ts. The selection criteria 
is based on BILGE. 
11. Appeals against customs authorities' decisions are governed by Title XII of Customs Law No. 
4458.  Any person has the right to appeal customs decisions. Appeal procedures on tax issues are different from those related to administrative decisi ons: tax appeals can be br ought before the relevant 
customs administration, where a decision must be ta ken and notified to the re levant person within 30 
days.  Appeals against decisions by the customs ad ministration can be brought, within seven days, 
before the Regional Directorate for Customs; the decision and notification must be made within 
30 days. Decision taken by the Regional Director ate for Customs can be appealled before the 
Undersecretariat of Customs, and the decision and notif ication is to be made within 30 days. After a 
final decision by the Regional Directorate or by th e Undersecretariat, the complainant has the right to 
file a law suit before the tax courts.  
12. Appeals against administrative decisions can onl y be brought against the Regional Directorate 
of Customs, i.e. an appeal cannot be brought against the customs office itself; the decision and 
notification to the person concerned must be made within 30 days. Th e time limit  to rule upon actions 
brought to the administrative courts is 60 days, and 30 days for tax courts.
13 During 2004-06, 11,486 
appeals per year were submitted, on average, to the Regional Directorates for Customs (80% on the 
value of goods, 15% on tariff classifi cation, and 5% on other issues). 
(ii) Rules of origin 
13. Turkey applies non-preferential and preferential ru les of origin.  As part of its obligations 
under the Customs Union Decision with the EC (CUD), since 1 January 1996, Turkey applies the same rules of origin as the EC with respect to imports from third countries. The non-preferential rules 
of origin, set out in Articles 17 to 21 of Customs Law No. 4458, assign origin to the country where the 
good has been wholly obtained or where it underwen t its last substantial transformation and an 
important stage of manufacture.
14 
14. Preferential rules of origin, under various trade agreements, are based on the degree of 
processing or value-added criteria, with scope for cumulation (Table III.1).15 Bilateral cumulation 
applies, for instance, under GSP (donor-country c ontent) and bilateral trade agreements. Since 
1 January 1999, Turkey has been part of the diagonal Pan-European Origin Cumulation System, 
                                                      
10 WTO (2003). 
11 WTO document G/VAL/2/Rev.15 of 21 October 2002. 
12 Article 45 of the Implementing Regulation of Customs Law No. 4458 (Exceptional Customs Value 
Declaration), regulates the implementation of the simplified procedures on customs valuation. 
13 Law on Administrative Trial Procedure No. 2577. 
14 Article 19 of Customs Law No. 4458. 
15 Article 22 of Customs Law and Article 34 of the Customs Regulations. Turkey WT/TPR/S/192 
 Page 29 
 
 
which allows the use of material from any country  within the zone (i.e. EC, EFTA, and Turkey) to 
produce a good while retaining preferential origin. The Pan-Euro-Mediterranean Cumulation System 
is another example.16 
Table III.1 
Preferential rules of origin, 2007 
Agreement Rules of origin 
Customs Union with the European Communities Who lly obtained or sufficiently transformed productsa 
Free-trade agreement with the European Fr ee Trade Association (EFTA) Wholly obt ained or sufficiently transformed productsa 
Economic Cooperation Organization (ECO) (Iran, Turkey, Pakistan) Minimum of 50% of the f.o.b. valueb 
Egypt; Israel; Morocco; Syria; Tunisia  Protocols on ru les of origin based on the origin protocol as 
concluded by the EC with th e country: wholly obtained or 
sufficiently transformed products are eligible for 
preferencesa 
Albania c d e; Bosnia-Herzegovinad e; Croatiad e; Macedonia (FYR) d e; 
Palestinian Authorityd Protocols on rules of origin based on the "Pan-Euro-Mediterranean Model" as concluded by the EC with the country: wholly obtained or sufficiently transformed 
products are eligible for preferences
a 
a The criteria for sufficient transformation are largely product-sp ecific, and include the use of certain inputs or value-added  
requirements. 
b The minimum local content in the exporting country is expre ssed as a percentage of the imported product's factory cost. 
c Bilateral trade agreement expected to enter into force during 2007. 
d Protocol on rules of origin is base d on bilateral cumulation of origin.  
e Albania, Bosnia-Herzegovina, Croatia, and Macedonia (FYR) are not currently pa rties to the Pan-Euro-Mediterranean 
Cumulation System. 
Source : WTO Secretariat, based on informati on provided by the Turkish authorities. 
(iii) Tariffs, other duties, and taxes 
15. Goods imported into Turkey are subject to vari ous charges: customs taxes and levies (customs 
tariffs, and the mass housing fund levy); and internal taxes (excise duties, i.e. special consumption 
tax, VAT, and the stamp duty). As a result of the C UD, Turkey applies the EC common external tariff 
(CET) to all industrial products and to the industrial component of processed agricultural products 
imported from third countries (since 1 January 1996).  Turkey's tariff is based on the 2007 Harmonized 
Commodity Description and Coding System (HS), and comprises 18,253 lines (19,478 in 2003) at the HS twelve-digit level (Table AIII.1).
17  The tariff has 214 bands (372 in 2003), including ad valorem  
equivalents.  Turkey does not have seasonal tariffs. 
16. Law No. 474 on Customs Tariff Schedule enabl es the Government to increase applied MFN 
tariff rates (adopted by the Council of Ministers for a given year) when they are deemed not high 
enough to provide "adequate" pr otection to domestic industries.18 The Law has set the so-called 
statutory tariff (different from the applied MFN tari ff which is adopted annually by the Council of 
Ministers). Under the Law, the Government can replace applied MFN tariff rates by 150% of the corresponding rates of the statutory tariff, with a view to ensuring higher protection to local industries. In the case of products subject to tariff bindings, when  the new rate (i.e. 150% of the statutory tariff 
rate) is higher than the corresponding bound tariff rate, then the latter applies. 
                                                     
 
16 In addition to the EC, EFTA, and Turkey, the current members of the Pan-Euro-Mediterranean 
Cumulation System are: Algeria, Egyp t, Israel, Jordan, Lebanon, Morocco , Palestinian Authority, Syria, and 
Tunisia.  Diagonal cumulation can be applied between part ner countries, provided th at a free-trade agreement, 
based on identical rules of origin, is applicable be tween the countries involved in the acquisition of the 
originating status and the country of destination. 
17 For a full description of Turkey's national tariff, see WTO (1998). 
18 Law No. 474 (Law on Customs Tariff Schedule) published in the Official Gazette  of 25 May 1964, 
and amended by Law No. 4217, published in the Official Gazette  of 8 December 1996. WT/TPR/S/192 Trade Policy Review 
Page 30 
 
 
(a) MFN applied tariff structure 
17. Turkey's tariff comprises ad valorem  rates – 97.9% of total lines (98.5% in 2003) – and non-
ad valorem  rates (specific, mixed, compound, and variab le duties), which apply to 378 items at the 
HS twelve-digit level (up from 284 in 2003). Specifi c duties are levied on 30 lines, including some 
alcoholic beverages, salt, and cinematographic fi lms. Mixed duties apply to 151 lines (58 in 2003), 
such as carpets, glass and glassware products, a nd watches.  Compound duties are levied on 113 lines 
(112 in 2003), mainly processed agricultural pro ducts such as yoghurt and pasta. Variable duties 
apply to 84 lines (the same as in 2003), such as butter, sugar confectionary, chocolate, malt, and 
prepared potatoes (Table III.2 and Table AIII.2). 
Table III.2 
MFN tariff distribution, by type of duty, 2007 
Type of duty Number of lines 
(12-digit HS) Examples (HS chapters) 
Ad valorem 17,875  All chapters 
Specific 30  22, 25 and 37 
Compound 113  04, 15, 17, 18, 19, 20, 21, 22, 35 and 38 
Mixed 151  21, 33, 57, 70, 72 and 91 
Variable 84 04, 17, 18, 19, 20, 21 and 33 
Total lines 18,253   
Source:  WTO Secretariat estimates, based on data provided by the Turkish authorities.  
18. Turkey has reduced somewhat its simple average MFN applied tariff from 11.8% in 2003 to 
11.6% in 2007 (taking into account ad valorem  equivalents of non- ad valorem rates) (Tables III.3 
and AIII.1)).  The coefficient of variation of 2.3 (2.2 in 2003) reveals high dispersion of tariff rates, 
which range from zero to 225% (0-227.5% in 2003).  Ov erall, the distribution is skewed towards rates 
between zero (excluded) and 10%;  57% of tari ff lines are within this range.  Duty-free items 
represent 23.6% of all tariff lines and include prod ucts under the Information Technology Agreement 
(ITA), pharmaceutical products, pulp of wood, so me cement, and products of animal origin. 
Therefore, 80.6% of tariff lines are subject to duties of up to 10%, while 6.2% of tariff lines have rates 
above 50% (Chart III.1). The most tariff-protected ite ms include meat products and edible meat offal 
(with a rate of 225%). 
Table III.3 
Structure of MFN tariffs, 2003 and 2007 
(Per cent) 
 2003 2007 
1.  Bound tariff lines (% of all tariff lines) 46.3 46.3 
2.  Duty free tariff lines (% of all tariff lines) 20.0 23.6 
3.  Non- ad valorem  tariffs (% of all tariff lines) 1.5 2.1 
4.  Non- ad valorem  tariffs with no AVEs (% of all tariff lines) 0.6 1.7 
5.  Simple average applied rate 11.8 11.6 
 Agricultural products (WTO definition)a 43.3 47.6 
 Non-agricultural products (WTO definition)b 5.4 5.0 
 Agriculture (Major Division 1 of ISIC Rev.2) 25.0 28.3 
 Mining and quarrying (Major Divi sion 2 of ISIC Rev.2) 0.2 0.3 
 Manufacturing (Major Division 3 of ISIC Rev.2) 11.1 10.9 
6.  Domestic tariff "spikes" (% of all tariff lines)c 8.3 8.6 
7.  International tariff "spikes" (% of all tariff lines)d 15.5 13.4 
8.  Overall standard devia tion of applied rates 25.8 26.4 
9.  "Nuisance" applied rates (% of all tariff lines)e 11.2 5.8 
a WTO Agreement on Agriculture. 
b Excludes petroleum. 
c Domestic tariff spikes are defined as those exceeding three times the overall simple average applied rate (indicator 5). 
d International tariff peaks are defined as those exceeding 15%. e Nuisance rates are those greater than zero, but less than or equal to 2%. 
Source:  WTO Secretariat calculati ons, based on data provided by the Turkish authorities. Turkey WT/TPR/S/192 
 Page 31 
 
 
19. The average applied MFN tariff is substantially higher in agriculture (28.3%, up from 25% in 
2003) than in manufacturing (10.9%, down from 11.1% in 2003), and in mining and quarrying (0.3%,  against 0.2% in 2003). Using the WTO definition
19, average tariff protection is 47.6% on agricultural 
products (compared with 43.3% in 2003), and 5% on non-agricultural products (5.4% in 2003). 
(1.9) (2.2)(8.2)(57.0)
(23.6)
(0.9)(6.2)
02,0004,0006,0008,00010,00012,000
0 0-10 10-20 20-30 30-40 40-50 <=500102030405060708090100
The figures in brackets correspond to the percentage of to tal lines. They do not add to 100% due to non-ad valorem 
duties.
WTO Secretariat calculations, based on data provided by the Turkish authorities.Chart III.1
Breakdown of applied MFN tariff rates, 2007
Number of tariff lines
Note:
Sourc e:Percentage
Number of lines 
Cumulated percentage (right-hand scale)
 
20. In aggregate, Turkey's tariff displays mixe d escalation, negative from first-stage processed 
products, with an average tariff rate of 28.3% (up fr om 19% in 2003), to semi-finished goods, with an 
average rate of 0.3% (6.4% in 2003); and positive from semi-finished to fully processed products, on 
which tariffs average 10.9% (down from 13.6% in 2003).  This structure is strongly influenced by the 
high tariffs on raw agricultural prod ucts, and to a lesser extent, by the tariff structure in certain 
industries. The simple average MFN tariff on first- stage processed goods is almost three times higher 
than on semi-processed products. However, tariff escal ation is positive in industries such as textiles 
and apparel, with escalation most pronounced in fo od, beverages and tobacco products (Table III.4 
and Chart III.2). It is positive from first-stage pro cessed goods to semi-finished products, and negative 
from semi-finished to finished goo ds, in chemical and plastic industries.  Tariff rationalization, 
through simplification of the structure and reduction of rates, would introduce more transparency in the tariff regime, reduce the need for c oncessions, and help improve competitiveness. 
                                                     
 
19 WTO definition of agriculture:  HS Chapters 01-24 less fish and fishery products (HS 0301-0307, 
0509, 051191, 1504, 1603-1605 and 230120) plus some selected products (HS 290543, 290544, 290545, 3301, 
3501-3505, 380910, 382311-382319, 382360, 382370, 382460, 4101-4103, 4301, 5001-5003, 5105-5103, 5201-5203, 5301 and 5302). WT/TPR/S/192 Trade Policy Review 
Page 32 
 
 
Table III.4 
Summary analysis of Turkish MFN tariff, 2007  
  Applied 2007 rates 
Analysis No. of linesa No. of lines 
used Simple avg. 
tariff (%) Range tariff 
(%) 
Std-dev (%) CV   
Imports 
2005b 
(US$ million)
Total 18,253 18,235 11.6 0-225 26.4 2.3 116,774.2 
By WTO definitionc               
Agriculture 2,865 2,847 47.6 0-225 51.9 1.1 4,755.9 
Live animals and products thereof 418 418 114.3 0-225 71.1 0.6 14.5 
Dairy products 178 178 109.4 8.3-170 55.6 0.5 60.1 
Coffee and  tea, cocoa, sugar, etc. 440 440 31.7 0-145 36.2 1.1 651.3 
Cut flowers and plants 116 116 10.1 0-46.8 14.6 1.4 77.2 
Fruit and vegetables 677 677 41.4 0-145.8 22.0 0.5 270.1 
Grains 65 65 48.3 0-130 40.7 0.8 189.6 
Oil seeds, fats, oils, and their 
products 250 250 19.5 0-50 12.6 0.6 1,557.7 
Beverages and spirits 296 278 46.7 0-70 28.5 0.6 63.2 
Tobacco 36 36 35.6 10- 74.9 20.5 0.6 275.5 
Other agricultural products 389 389 7.5 0-46.8 9.3 1.2 1,596.8 
Non-agriculture (excl. petroleum) 15,307 15,307 5.0 0-81.9 6.8 1.4 93,547.0 
Fish and fishery products 405 405 33.6 0-81.9 19.2 0.6 104.3 
Mineral products, precious stones, 
and precious metals 919 919 2.4 0-20 2.8 1.2 9,694.6 
Metals 1,952 1,952 3.7 0-23.4 4.7 1.2 14,919.4 
Chemicals and photographic 
supplies 3,365 3,365 4.5 0-17.3 2.6 0.6 15,936.7 
Leather, rubber, footwear, and 
travel goods 514 514 4.5 0-17 4.5 1.0 1,943.1 
Wood, pulp, paper and furniture 858 858 0.7 0-10 1.8 2.5 3,354.9 
Textiles and clothing 3,072 3, 072 8.0 0-12 3. 0 0.4 6,232.9 
Transport equipment 442 442 5.1 0-22 4.8 0.9 11,832.3 
Non-electric machinery 1,633 1,633 1.7 0-9.7 1.4 0.8 16,374.7 
Electric machinery 936 936 2.8 0-14 3.0 1.1 9,313.1 
Non agricultural articles n.e.s. 1,211 1,211 2.3 0-18.3 2.0 0.9 3,841.0 
By ISIC sectord        
Agriculture, hunting, forestry, and 
fishing 928 928 28.3 0-150 32.7 1.2 2,711.5 
Mining 255 255 0.3 0-20 1.7 5.7 10,933.1 
Manufacturing 17,069 17,051 10.9 0-225 25.9 2.4 96,896.4 
By stage of processing        
Raw materials 1,856 1,856 19.0 0-150 27.5 1.4 17,257.3 
Semi-processed products 6,527 6,527 6.4 0-135 11.1 1.7 34,833.7 
Fully-processed products 9,870 9,852 13.7 0-225 32.2 2.4 58,468.2 
a Total number of lines is listed. Tariff rates are based on a lower frequency (number of lines) since lines with no ad valorem  
equivalents are excluded.  
b The total of imports is higher than the sum of sub-items as  US$6,215.0 million are not classified in the Harmonized System. 
c 81 tariff lines on petroleum products are not taken into account. 
d International Standard Industrial Classification (Rev.2).  Electricity, gas, and water are excluded (1 tariff line). 
Note: CV = coefficient of variation. 
Source : WTO Secretariat estimates , based on data provided by the Turkish  authorities. Imports 2005 from UNSD, 
Comtrade database. Turkey WT/TPR/S/192 
 Page 33 
 
 
0.010.020.030.040.050.060.070.0Chart III.2
Tariff escalation by ISIC 2-digit industry, 2007
Per cent
Sourc e: WTO Secretariat estimates, based on data provided by the Turkish authorities.
All product s
Food, beverage s
Textiles,
appare l
Wood product s
Paper, printin g
Chemicals ,
plastic s
Non-metalli c
minera l
product s
Basic meta l
product s
Fabricated meta l
product s
Othe r
manufacturin gNOT APPLICABLEAgricutur e
Minin gRaw materials Semi-processed Fully processed
NOT APPLICABLE
 
(b) MFN bound tariffs 
21. As a result of the Uruguay Round, 46.3% of Tu rkey's tariff lines were bound (all tariff lines 
for agricultural products (WTO definition), and about 36% of the lines for non-agricultural products).  
Since 2005, final bindings range from zero to 225%  on agricultural products, and from zero to 102% 
on non-agricultural goods.20  For certain products, applied MFN rates are well below the bound rates, 
thus allowing Turkey margins to increase its im port tariffs; the simple average bound rate has 
declined to 33.9%, compared with  a simple average applied MFN rate of 11.6% in 2007.  The 
imposition of non- ad valorem  tariff rates does not ensure comp liance by Turkey with its WTO 
binding commitments made at ad valorem  rates. In accordance with its obligations under the CUD, 
Turkey largely aligned its tariff binding (mai nly on non-agricultural products) on the EC's. 
Nonetheless, Turkey's tariff binding leaves room for improvement: the tariff regime would gain in 
transparency and predictability through extension of the scope of products covered by the binding 
commitments, and reduction of bound rates. 
(c) Duty and tax concessions 
22. Duty and tax concessions on imports are gr anted under the Investment Encouragement 
Programme (IEP) (section (4)(i)). 21 In addition, the inward-processing (IP) scheme still benefits 
exporters. Imports of certain produc ts for disabled persons or certai n public administrations, financial 
leasing, projects financed by donors, and some temp orary imports are eligible for tariff concessions.  
All imports by the Ministry of National Defence in the context of the North Atlantic Treaty Organization (NATO) are exempt from payment of customs duties (Table III.5).
22 
                                                      
20 The reduction in bound tariffs was implemented in equal annual instalments between 1995 and 2004. 
GATT (1994), Schedule XXXVII. 
21 Decree No. 2006/10921 of 28 August 2006, amended by Decree No. 2007/12142 of 21 May 2007. 
22 For a description of the exemption programmes eliminated up to 1998 see WTO (1998). WT/TPR/S/192 Trade Policy Review 
Page 34 
 
 
Table III.5 
Key features of concessional entry schemes, 2007 
Scheme Eligibility Incentives Performance 
requirement 
Investment encouragement programme Exemption from customs and fund levies for 
imported machinery and equipment on the Machinery and Equipment list approved by 
the Undersecretariat of the Treasury
a None 
 Feasible investment projects by 
some found by the Undersecretariat of Treasury to reduce regional 
imbalances within the country, 
create new employment opportunities, and increase 
competitiveness while using 
technologies with greater value added VAT exemption for imported and locally 
purchased machinery and equipment on the list   
Inward processing regime    
(a) Conditional 
exemption for 
imports (suspension 
system) Any exporter Intended for goods to be re-exported;  
suspension of duty and VAT on raw materials, 
auxiliary materials, semi-finished and finished products, packaging materials None 
(b) Use of equivalent 
goods Any exporter Suspension of customs duties and VAT on 
imported inputs after export of compensating 
products None 
(c) Repayment of duties 
collected on imports Any exporter After export of goods with imported inputs, 
refund of customs duty and VAT paid on 
imported inputs, based on a drawback method None 
NATO North Atlantic Treaty Orga nization 0% on all imports None 
Defence Ministry of National Defence or by 
public institutions on behalf of 
the Ministry 0% on all imports None 
Donations  State administrations; certain items 
to be used mainly for the public 
interest approved by relevant Ministries. .. None 
 Vehicles produced especially for 
disabled persons ..  
Financial leasing Vessels, air carriers, medical 
equipment, and high-tech products Suspension of all customs duties and taxes up 
to the date the leasing contract is over;  VAT 
reductions None 
Temporary imports Any importer; certain commercial 
or personal items Tariff suspension on temporary use in Turkey 
for three to 12 months without any substantial 
transformation None 
Project credit (donor) Project evaluation criteria of Turk 
Eximbank Terms and conditions of the project loan are in 
accordance with the provisions of the OECD 
Consensus None 
Encouragement of tourism .. .. .. 
Private (special) laws 
regarding exemptions .. .. .. 
.. Not available. 
a Goods imported at 20% duty: pa ssenger vehicles, buses (excluding double-decker bus es), tractors (excluding tractors conformin g 
to Euro-1 or Euro-2 norms and having envi ronment-friendly engines), trailers (except refrigerated trailers), televisions, video s, 
mini-refrigerators, furniture, import of yachts (including motor boats), trucks, (excluding off-road truck types and rock-type d ump 
trucks that are not allowed on hi ghways), mixers, and trans-mixers. 
 Goods imported at 18% duty: expa nsion of or new investments that have a mini mum capacity of 100,000 units per year of firms 
that will manufacture automobiles considered  as new models for a period of ten year s after the date of their first production 
worldwide. 
 Goods imported at 10% duty: raw material s, intermediary goods, and operating material s to be imported for operational needs. 
 Goods imported at 5% dut y: construction material. 
Source : WTO Secretariat, based on informati on provided by the Turkish authorities. 
23. The IEP is aimed at, inter alia , reducing regional disparities a nd promoting small and medium 
sized enterprises (SMEs). In principle, all investme nt projects are eligible. Project applications are 
subject to assessment by the Undersecretariat of Treasury. If granted a certificate, the project can 
benefit from customs duty exemptions on all machiner y and equipment to be used in the physical 
plant. Imports and local purchases of machinery a nd equipment within the scope of the approved Turkey WT/TPR/S/192 
 Page 35 
 
 
"Machinery and Equipment List" are also exempted from the VAT.23 Furthermore, foreign exchange 
earning activities are exempt from stamp duties and charges.24 There is no difference between foreign 
and domestic investors in terms of the investment encouragement programmes. 
24. The IP scheme allows Turkish manufacturers/e xporters to import materials free of duties 
(including surcharge) and other commercial policy measures.25  Goods imported under the IP scheme 
are intended for re-export from the customs territory  of Turkey in the form of "compensating 
products".26  The system works through suspension of  duties and VAT until the exportation of the 
products (the most frequently used system), or  reimbursement based on a drawback method. The 
suspension system is used whenever there is "subs tantiated" intention to re-export the goods in the 
form of compensating products.27 Under the drawback system, used mainly for inward processing, 
repayment of the import duty and VAT can be r eclaimed when the compensating products are 
exported. 
(d) Tariff preferences 25. As part of its obligations under the CUD, Turkey must align all its preferences to third 
countries, including the GSP, on the EC's (Table III.6). 
Table III.6 
MFN and preferential tariff averagesa, 2007 
HS WTO definition ISIC  All 
products 01-24 25-97 Agriculture Non-
agriculture  Agriculture Mining Manu-
facturing 
MFN 11.6 48.8 4.2 47.6 5.0 28.3 0.3 10.9 
GSP 9.8 48.6 2.0 47.3 2.8 28.3 0.2 8.9 
LDCs 8.3 48.0 0.3 46.8 1.2 28.3 0.0 7.4 
EC 7.9 49.3b 0.0 48.6b 0.8 28.1 0.0 6.9 
EFTA 7.2 44.9 0.0 48.6 0.0 24.7 0.0 6.3 
Bosnia-Herzegovina 1.0 6.4 0.0 7.0 0.0 2.9 0.0 0.9 
Croatia 8.1 48.0 0.0 46.8 0.9 28.3 0.0 7.1 
Egypt 8.1 48.0 0.0 46.8 0.9 28.3 0.0 7.1 
Israel 8.1 48.0 0.0 46.8 0.9 28.3 0.0 7.1 
Macedonia (FYR) 7.9 46.9 0.0 45.6 0.9 28.3 0.0 6.9 
Morocco 8.1 48.0 0.0 46.8 0.9 28.3 0.0 7.1 
Palestinian Authority 8.1 48.0 0.0 46.8 0.9 28.3 0.0 7.1 
Syria 8.1 48.0 0.0 46.8 0.9 28.3 0.0 7.1 
Tunisia 8.1 48.0 0.0 46.8 0.9 28.3 0.0 7.1 
a Simple average applied tariff rates, calculated across all tariff lines, for each a rrangement (reciprocal and non-reciprocal)  of 
Turkey. 
b The simple average applied rate on imports from the EC is hi gher than the MFN average rate because of differences in the 
number of lines used in each case: due to lack of data for the calculation of certain ad valorem  equivalents, 2,669 tariff lines were 
used for imports from the EC, and 2,847 lines for the MFN rate. 
Source: WTO Secretariat calculations , based on data provided by  the Turkish authorities. 
26. The majority of Turkey's preferential agreemen ts, which build on the design of the CUD, 
have eliminated tariffs on all products under HS Chapters 25-97. Tariff preferences on agricultural 
                                                      
23 WTO document G/SCM/N/123/TUR, 12 January 2006. Once the exemption is listed on the 
"certificate", the investor may impor t the machinery and equipment indicat ed on the approved list, i.e. the 
"Machinery and Equipment List", only for the purposes of the investment in question. 
24 Articles 28 and 33 of Law No. 5035. The Ministry of Finance is in charge of implementing the 
exemption under the Communiqué on Stamp and Charges Exemption on Foreign Exchange Earning Activities. To benefit from this exemption, taxpayers must obtain a tax, fee (duty), and charge exemption certificate from 
the Undersecretariat of Foreign Trade, and transfer the certificate to the in stitution carrying out the transaction. 
The transaction must be made during the validity period of the certificate. 
25 Decree No. 2005/8391 published in the Official Gazette  of 27 January 2005. 
26 Compensating products are all goods obtained from processing operations. 
27 In the suspension system, manufacturers can use substitutes of the imported goods for the 
manufacture of compensating products. WT/TPR/S/192 Trade Policy Review 
Page 36 
 
 
products, granted under Turkey's tr ade agreements, are generally s ubject to quotas (Tables III.7 and 
III.8). Turkey also introduced preferential tari ff quotas on some non-agricultural products (i.e. 
acrylonitryl and 14-inch television tubes). Prefer ential tariff quotas were eliminated on flat-rolled 
products of iron or non-alloy steel at the end of  2003, and on dimethyl terephalate, monoethylen 
glicol, and terephthalic acid at the end of 2004 (section 2(iv) below). 
Table III.7  
Preferential trading agreements, 2007 
Agreement/Country Coverage by Turkey Preferential margin 
Customs Union with the European 
Communities All industrial products and industrial 
components of processed agricultural products Duty free on industrial products and on the 
industrial component of processed agricultural products 
Agreement between Turkey and the EC on trade in agricultural products Some agricultural products  Preferen tial tariff quotas, most with zero 
rate 
Free Trade Agreement between Turkey and the EC on ECSC products ECSC products Duty free on ECSC products 
Free-trade agreement with  the European Free 
Trade Association (EFTA)a All industrial products 
Fish and fishery products 
Processed agricultural products Duty free on industrial products and on  the 
industrial components of processed 
agricultural products; duty free on fish and fishery products 
Economic Cooperation Organization (ECO) (Iran, Pakistan, Turkey) 36 items at the HS four-digit level
b No preferential rates appliedc 
GSP 2,884  items at the HS twelve -digit level  2,174 duty-free items for developing 
countries and 2,884 for least developed 
countries 
Israel All industrial products 
Some agricultural and processed agricultural 
products (25 items at the HS four-digit level)Duty free on industrial products;  preferential 
tariff quotas on agricultural and processed 
agricultural products 
Macedonia (FYR) All industrial products 
Some agricultural and processed agricultural 
products (43 items at the HS six-digit level) Duty free on industrial products;  preferential 
tariff quotas on agricultural and processed 
agricultural products 
Croatia All industrial products 
Some agricultural and processed agricultural 
products (53 items at the HS six-digit level) Duty free on industrial products;  preferential 
tariff quotas on agricultural and processed 
agricultural products 
Bosnia-Herzegovinad All industrial products 
Most agricultural and processed agricultural 
products, with a few exceptions (692 items at 
the HS six-digit level) Duty free on industrial products, on basic 
agricultural products (except 8 items at the 
HS four-digit level) and on the industrial 
components of processed agricultural products 
Morocco Most industrial products 
Some agricultural and processed agricultural 
products (39 items at the HS six-digit level) Duty free on industrial products;  preferential 
tariff quotas on agricultural and processed agricultural products 
Palestinian Authority All industrial products Duty free on industrial products 
Syria All industrial products 
Some agricultural and processed agricultural 
products (36 items at the HS six-digit level) Duty free on industrial products;  preferential 
tariff quotas on agricultural and processed 
agricultural products 
Tunisia Most industrial products 
Some agricultural and processed agricultural 
products (16 items at the HS six-digit level) Duty free on industrial products;  preferential 
tariff quotas on agricultural and processed 
agricultural products 
Egypt  All industrial products 
Some agricultural and processed agricultural 
products (106 items at the HS six-digit level)Duty free on industrial products;  preferential 
tariff quotas on agricultural and processed 
agricultural products 
Albania (signed, not yet in force) All industrial products 
Some agricultural and processed agricultural 
products (197 items at the HS six-digit level)Duty free on industrial products;  preferential 
tariff quotas on agricultural and processed 
agricultural products 
a  A number of agricultural goods are covered under bilateral agreements between Turkey a nd individual EFTA countries. 
b  Including certain marble, pharmaceuticals,  detergents, leather products, paper and paperboard, canvas, centrifugal pumps for  
liquids, compressors, henna, and bentonite. 
c  Preferential margin is 10% reduction in the statutory rates.  As these rates are higher than MFN rates, preferential rates a re not 
applied. 
d  Turkey did not grant Bosnia-Herzegovina concessions for liv e bovine animals, sheep, and goats, certain live poultry and meat , 
edible offal of bovine animals, sheep, goa ts, and meat and edible offal of certain  poultry. Turkey app lies the agricultural 
component for imports of processed agricultural products and th e housing fund for imports of fishery products originating in 
Bosnia-Herzegovina. 
Note: Relevant rules of origin are detailed in Table III.1. 
Source : Information provided by the Turkish authorities. Turkey WT/TPR/S/192 
 Page 37 
 
 
Table III.8 
Preferential tariff quotas on agricultura l and processed agricultural products, 2007 
Free-trade 
agreement partner Number of items Products affected 
EC 108 items at the HS six-digit level Live bovine anim als and their meat, milk powder, butter, cheese, egg 
yolks, flower bulbs, live plants, fresh cut flowers, foliage, mushrooms, 
frozen beans, pears, st rawberries, potato seed, apple, peach, tamarinds, 
passion fruit, tea, wheat, rye, barley, rice, maize, oats, malt, sunflower seeds, sugar beet seed, cotton seed, crude and refined soya bean oil, 
sugar, crude sunflower oil, crude ra pe, colza and mustard oil, tomato 
paste, prepared vegetables, jams and jellies, fruit juices, sparkling wine, 
vinegar, flours, meals and pellets of meat or meat offal of fish or of 
crustaceans, oilcake and other solid residues, dog or cat food and other 
animal feeds 
Israel 25 items at the HS four-digit level Avocado, mango, carrot, sweet corn, citrus fruit, orange juice, coffee, 
kosher-brandy, and vodka 
Macedonia (FYR) 21 items at the HS four-digit level Some fresh vegetables (tomato, onion, shallots, cucumber, etc.), bean, 
watermelon, apple, rice, canne d vegetables, and sauces and 
preparations (mixed condiments a nd seasoning), soups and broths and 
preparations (wine of fresh grapes , undernatural ethyl alcohol of an 
alcoholic strength by volume of less than 80% volume) 
Croatia 17 items at the HS four-digit le vel Cheese and curd,  apples, maize,  sugar confectionery,  chocolate and 
other food preparation containing cocoa,  malt extract,  pasta,  prepared foods obtained by swelling or roas ting of cereals or cereal products, 
bread, pastry, cakes, biscuits a nd other bakers' wares,  fruit and 
vegetable juices,  sauces and prepar ations therefore,  mixed condiments 
and mixed seasoning,  soups and brot hs and preparations therefore,  
waters, including mineral waters a nd aerated waters, containing added 
sugar or other sweetening matter or flavoured,  beer made from malt,  
wine of fresh grapes,  undernatured  ethyl alcohol of an alcoholic 
strength by volume of 80% vol or highe r,  preparations of a kind used 
in animal feed 
Bosnia-Herzegovina 193 items All agricultural produc ts classified under HS Code 1-24 with the 
exemption of:  live bovine animals;  live sheep and goats;  live poultry 
(exclusively fowl of the species Gallus domesticus );  meat of bovine 
animals;  meat of sheep or goats;  edible offal of bovine animals, swine, 
sheep, goats, horses asses, mules or hi nnies;  meat and edible offal of 
poultry (exclusively fowl of the species Gallus domesticus ) 
Morocco 39 items Live plants, orchids, cabbages, turnips, asparagus, mushrooms, sweet 
peppers, sweet corn, capers, cucumb ers, preserved cucumber, broad 
beans, avocados, coriander seeds, gi nger, saffron, turmeric, thyme, bay 
leaves, curry, locust b eans, preserved apricots , coffee extracts, wine, 
and bran 
Syria 36 items Cut flowers, onions and sha llots, garlic, capers, grapes, cherries, 
peaches, seeds of anise, seeds of cumi n, ginseng roots, parts of plants 
spices, crude soya bean oil, cr ude sunflower seed oil, sugar 
confectionary, chocolates , preserved fruit, preserved pepper, jams and 
marmalades, apple juices, wine, and olive pulp 
Tunisia 16 items Dates, sardines, mackerel, shrimps and prawns, molluscs, harissa, and 
wine 
Egypt  197 items Fish and crustaceans, molluscs,  aquatic invertebrates, live plants, cut 
flowers, potatoes, garlic, lettuce, ca rrots, turnips, frozen vegetables, 
provisionally preserved vegetables, dried vegetables, dates, guavas, 
mangoes, strawberries, spices, rice , groundnuts, sugar confectionery, 
chocolate pasta, bakers’ waves, pres erved cucumbers, preserved fruit, 
fruit juices, and active yeasts 
Albania (signed, not 
yet in force) 106 items Cheese and curd, eggs, honey, liv e plants, tomatoes, onions, cabbages, 
carrots, cucumber, beans,  frozen vegetables, dried vegetables, peas, 
spices, melons, frozen fruits, plants and parts of plants, preserved fish, 
chocolates, bakers’ waves, preserve d cucumbers, preserved tomatoes, 
jams and jellies, preserved fruit, fr uit juices, tomato paste, ice cream, 
mineral water, wine, verm outh, and ethyl alcohol 
Source : Information provided by the Turkish authorities. WT/TPR/S/192 Trade Policy Review 
Page 38 
 
 
(e) Other duties and taxes 
27. In addition to customs tariffs, certain products  are also subject to: the Mass Housing Fund 
(MHF) levy, excise duties also known as the special consumption tax (SCT), the VAT, and the stamp duty.  
Customs taxes and levies 
28. The mass housing fund levy applies to imports of  fish and fishery products (283 tariff lines at 
the HS 12-digit level, i.e. 1.6% of total lines, down from 555 lines in 2003).
28 It is the difference 
between the required tariff protection and the statutory tariff rate. 
29. For all products subject to binding commitm ents (except duty-free goods), Turkey bound 
other duties and charges at: 15% of customs duty (t he municipality share); and 3% (road, rail or air 
transport) or 4% (maritime transport) of the sum of  the c.i.f. value, custom s duty, and other charges 
(the transportation infrastructure fee).29 
Internal taxes 
30. The SCT, put into effect on 1 August 2002, is  a single-stage tax levied equally on domestic 
production and imported goods. The SCT applies to: (i ) petroleum products (specific duties); (ii) 
motor vehicles ( ad valorem ); (iii) alcoholic beverages and tobacco products ( ad valorem  and/or 
specific); and (iv) luxury goods ( ad valorem  (Table AIII.3)). In most cases, the SCT is charged at the 
factory gate or first delivery, but in some cases, such  as motor vehicles, it is charged at the level of the 
dealer, and in others, such as tobacco, on the consumer retail price, but from the manufacturer. Since its previous TPR, Turkey has made some changes to its SCT legislation, including replacing the 
specific excise duty on tobacco products with ad valorem  rates.
30 
31. The VAT is levied at 1%, or 8% on agricultural and basic goods, and at 18% on some non-
agricultural products and luxury items (including co smetics, furs, televisions, and automobiles). The 
VAT applies on the duty-inclusive customs value of  imports, and on the delivery value of locally 
produced goods. 
32. A stamp duty of YTL 28 is collected by the Minist ry of Finance on all tax-related declarations 
by real and legal persons. 
(iv) Import prohibitions, quotas, and licensing 
33. The importation of ten items (the same products as in 2003), by broad category, is prohibited 
by law, for reasons such as environment, public sec urity, health, public morals or the fulfilment of 
international obligations (Table III.9). 
                                                      
28 The MHF was introduced in 1984 to finance the Government's low-cost housing schemes for poor 
and middle-income families. Customs duties collected on the agricultural component of processed goods are 
also transferred to the MHF. 
29 Turkey's GATT (1994), Schedule XXXVII . Turkey does not currently impose these other duties and 
charges.  The "transportation infrastructure fee" and th e "municipality share" were abolished as from 1 January 
1993 with the promulgation of Law No. 3284, published in the Official Gazette  of 11 July 1992. 
30 According to the EC, the new structure on tobacco products is not in line with the acquis (European 
Commission, 2006). Turkey WT/TPR/S/192 
 Page 39 
 
 
34. Since 1996, the Ministry of Agriculture and Rural Affairs (MARA) has not issued "control 
certificates" for imports from countries considered to be risks for diseases.  According to the 
authorities, the decision was made "on sanitary grounds (to protect the domestic livestock industry from epidemic diseases such as Bovine Spongifor m Encephalopathy (BSE) and foot and mouth 
disease (FMD))", and was based on the World Organization for Animal Health (OIE) risk 
classification for live animals (dairy and beef cattle , sheep, goats, and poultry) and meat (beef, sheep, 
goat, and poultry). 
Table III.9 
Import prohibitions, 2007 
Description of items Invocation of WTO Ar ticle Domestic/intern ational legislation 
Narcotics, hashish and prepared opium 
(2 items)a Health, IAb 
(Article XX:b, h) Law No. 2313 on the Control of Narcotics, and the 
International Agreement on Narcotics Goods (1961) 
Ozone depleting substances 
(1 item)a, c Environment 
(Article XX:b, d) Copenhagen Amendment to Montreal Protocol on 
Substances That Deplete the Ozone Layer, Import Regime 
No. 2007/14 
Colouring matter 
(1 item) Health 
(Article XX:b) Law No. 1593 on the Protection of the Public Health; 
Regulation on Special Conditions of Foodstuffs and 
Supplies and Objects Concerning Public Health; Import Regime Communiqué No. 2007/15 Add II (List) 
Schedules chemical w eapons in I and II of 
the Convention (4 items)
c Environment (Article XX:b, d) The Convention on the Prohibition of the Development, 
Production, Stockpiling and Us e of Chemical Weapons 
and their Destruction; Im port Regime Communiqué 
No. 2007/17 (List I) 
Measurement instruments not conforming 
to Turkish legal norms (non-metric or 
double standard) 
(6 items) Compliance with domestic 
law 
(Article XX:d) Law No. 3516 on Standards and Accords 
Arms and ammunition,  propellant 
powders, prepared explosives, fuses, caps 
igniters detonators a 
(3 items) Security 
(Article XXI:b(i),(ii)) Law on Firearms (No. 6136 of 1953); Import Regime 
Communiqué No. 2007/2 
Gambling instruments (except for specified 
tourism purposes)a 
(1 item) Public morals 
(Article XX:a) Law No. 1072 on Gambling Instruments like Roulette, 
Tilt, and Pinball  
Products making illegal use of a trade mark 
(all industrial products) Compliance with domestic 
law; IAb 
(Article XX:d,h) 
 
Public morals 
(Article XX:a) Paris Convention 1883 annexed to the Law of 1930 on 
Accession to 1925 Hague Agreement on International 
Industrial Property (1925); Statutory Decree No. 556 on the Protection of the Trademarks  
Customs Law (No. 4458 of 1999) 
Soil, leaf, stem, straw, and natural manure used for agricultural purpose (excluding 
turf and perlites cultivated in culture 
environment) Health 
(Article XX:b) Regulation on Agricultural Quarantine 
Spawn of silk-worm .. Law No. 859 on Cu ltivation and Sale of Silk-worm and 
Silk-worm Spawn 
.. Not available. 
a Prohibited except when imported by authorized government bodies. 
b IA:  Undertaken in pursuance of obligations under intergovernmental commodity agreements. 
c Imports prohibited only from non-members of the international agreements. 
Note: Number of items refers to the Harmonized  System classification at the four-digit level. 
Source : WTO Secretariat, based on informati on provided by the Turkish authorities.  
35. On 1 January 2007, preferential tariff quotas we re opened for acrylonitryl (for 12 months), 
and for 14-inch television tubes (but were eliminat ed on 30 June 2007). In addition, preferential tariff 
quotas were eliminated on flat-rolled products of ir on or non-alloy steel at the end of 2003, and on 
dimethyl terephalate, monoethylen glicol, and terepht halic acid at the end of 2004. Quota allocations WT/TPR/S/192 Trade Policy Review 
Page 40 
 
 
are made on a "past performance" or "production cap acity" basis. Some 90% of the tariff quotas on 
television tubes and 100% on acrylonitryl were used. 
36. Since 1 January 1996, Turkey has been applying import quotas on certain textile and clothing 
products as a requirement for harmonizing its import policy with that of the EC.31  If the exporting 
country agrees to a bilateral understanding, the quota is  balanced in response to needs. Turkey applies 
quotas to textile and clothing pro ducts from Belarus (with which an  agreement has been reached) 
under the double checking system, and to goods from the Democratic People's Republic of Korea, 
Montenegro, and Uzbekistan (with which agreem ents have not been reached) under the single 
checking system.  It also appli es surveillance measures to imports from Uzbekistan and Turkmenistan 
under the single checking system. Moreover, Turkey  has quotas for 44 categories of textiles and 
apparel products from China, such as shirts, jerseys, T-shirts, and gloves (section (v)(b)).32 Turkey 
applies preferential quotas on certain agricultural and non-agricultural products (section (iii)(e) above). 
37. Import licences are required for several categor ies of products, including some motor 
vehicles, transmission apparatus, chemicals, fertili zers, endangered species of wild fauna and flora, 
solvent and petroleum products, and certain sugar s ubstitutes (Table III.10).  Importers of these items 
must obtain permission from the relevant authorities. According to the authorities, in addition to security, safety, and environment reasons, the restri ctions are intended to protect consumers, assure 
that imported vehicles are suitable for domestic highwa ys, and, for certain items (81 HS lines at the 
four-digit level) to prevent imported goods from bei ng used for other than their intended purposes in 
civil aircraft.  Concerns have been expressed abou t the lack of transparency in Turkey's import 
licensing system for some agricultural products and distilled spirits.
33  Additional restrictions under 
Turkey's SPS regulations are discussed below (section (vi)(d)). 
Table III.10  
Imports requiring a licence, 2007 
Description of items Reason for licence 
Radioactivity-related items  (11 items) 
Uranium ores, isotopes, nuclear reactors, X-rays Imports only permitted on approval by the Turkish Atomic Energy 
Authority: to assure patient security against the probable harmful effects of 
radioactivity 
Telecommunications, machinery, and related items     
(74 items) 
Electrical apparatus for line telegraphy, telephone 
answering machines, radar, transmission, reception 
apparatus, air-conditioning machines, household type electrical refrigerators, clot hes dryers, instantaneous gas 
water heaters, sewing machin es of household types, 
machine-tools for drilling etc., vacuum cleaners, some photocopying machines, certain motor vehicles Imports only permitted with a certificate issued by the Ministry of Industry 
and Trade to the effect that after-sal e services such as maintenance and 
repair are warranted on a regional ba sis and that maintenance service 
technicians and spare-part stocks are suff icient:  to assure that imports are in 
conformity with the national teleco mmunication network and to protect 
consumers 
Motor vehicles  (7 items) 
Road tractors for semi-trailers, station wagons, racing cars, trailers, special-purpose motor vehicles other than those 
designed for the transport of persons or goods Imports only permitted with a pro forma invoice certified by the Ministry of 
Industry and Trade:  to assure the suitability of imported vehicles for 
highways 
Fertilizers  (5 items) 
Animal or vegetable fertilizers, and mineral or chemical 
fertilizers Imports only permitted on approval by the Ministry of Agriculture and Rural 
Affairs (MARA):  to avoid damage to health of humans, animals or to the 
lifecycle of plants 
 Table III.10 (cont'd) 
 
 
                                                      
31 WTO document WT/REG22/7 of 24 November 1997. 
32 Communiqué No. 2006/6, published in Official Gazette  No. 26386, 24 December 2006. According to 
the authorities, these quotas are applied under paragrap h 242 of the Report of the Working Party on the 
Accession of China to the WTO, which sets a safeguard  mechanism for imports of textiles and apparel products 
originating in China.  WTO document WT/ACC/CHN/49, 1 October 2001. 
33 USTR (2006). Turkey WT/TPR/S/192 
 Page 41 
 
 
Description of items Reason for licence 
Banknotes and related items  (1 item) 
Banknotes and the like, securities Imports only permitted on approval by th e Central Bank of Turkey or the 
Board of Capital Markets:  to assure the continuation of administrative order 
related to precious documents, e.g. shares, bonds 
Explosives and related items  (14 items) 
Technical ammonium nitrate, prepared explosives, some 
fuses, fireworks, some astronomical instruments Imports only permitted on approval by the General Directorate of Security 
in the Ministry of Interior:  to assu re national security and public safety 
Chemicals and related items  (5 items) 
Hexane, white spirit, xylene , toluene, solvent naphtha, 
petroleum oils, benzene Imports only permitted on approval by the Energy Market Regulatory 
Authority (EMRA);  imports of toluene require approval of the Ministry of 
Health:  to protect consumers 
Products affecting worker health  (12 items) 
Asbestos, benzene Imports only permitted on approval by the Institute of Workers' Health and 
Security in the Ministry of Works and Social Securi ty:  to protect workers' 
health 
Civil aircraft related items  (81 items) 
A wide range of items of a kind used on civil aircraft Imports only permitted on approval by th e General Directorate of Civil 
Aviation in the Ministry of Transportation:  to prevent the use of imported 
goods in areas other than civil aviation 
Maps related items  (2 items) 
Maps and hydrographic or similar charts of all kinds, and 
digital maps and map informa tion recorded on magnetic or 
optical media Imports only permitted on approva l by the General Command of 
Cartography in the Ministry of De fence, and the General Command of 
Naval Forces:  national security 
Items related to the manufacture of chemical weapons  
(22 items) 
A wide range of chemical products used in the production 
of weapons Imports only permitted on approval by th e Undersecretariat of Foreign 
Trade:  to comply with the Conve ntion on the Prohibition of Chemical 
Weapons 
Some sugar substitutes (11 items) 
Aspartam, saccharin  Imports permitted with eligibility certif icate issued by the Turkish Sugar 
Authority without any restriction.  Control of these products at the importation stage is conducte d by MARA.  These products are not subject to 
import licence. 
Endangered species of wild fauna and flora Imports only permitted on approval by the Ministry of Agriculture and Rural 
Affairs or the Ministry of Environmen t and Forestry: to comply with the 
Convention on International Trade in Endangered Species of Wild Fauna 
and Flora (CITES) 
Energy 
Electricity and natural gas Imports only permitted on approval by EMRA:  to ensure effective 
operations in market activities and to co mply with relevant EC Directives.  
Solvent and some petroleum products Imports only permitted on approval by EMRA: to prevent the unorthodox 
use of these items out of purpos e and to ensure quality of fuels 
(Communiqué No. 2007/12 of EMRA) 
Liquefied petroleum gases  Imports only permitted on approval by EMRA: to prevent the unorthodox 
use of those items out of purpos e and to ensure fuel quality  
Note: Number of items refers to the Harmonized  System classification at the four-digit level. 
Source : WTO Secretariat, based on information provided by the Turkish authorities; and WTO document 
G/LIC/N/3/TUR/6, 23 October 2006. 
38. The importation of old, used, renovated, faulty and obsolete goods is subject to permission by 
the Undersecretariat of Foreign Trade (UFT).  Measur ing and weighing instruments to be released for 
free circulation in Turkey are subject to control by the Directorate General of Measures and Standards (Ministry of Industry and Trade); carrying materi als comprising cinematographic and musical works 
are inspected and examined by the Directorate of Copyright and Cinema with the aim of combating 
piracy.  
(v) Contingency trade remedies 
(a) Anti-dumping and countervailing measures 
39. No major changes have been made to th e legislative framework for anti-dumping and 
countervailing measures since Turkey's l ast review.  The framework comprises
34: (i) Law 
                                                      
34 WTO documents G/ADP/N/1/TUR/3 and G/SCM/N/1/TUR/3 of 17 April 2000; 
G/ADP/N/1/TUR/3/Suppl.1 and G/SCM/N/1/TUR/3/Suppl.1 of 7 May 2002; G/ADP/N/1/TUR/3/Suppl.2 and 
G/SCM/N/1/TUR/3/Suppl.2 of 10 June 2005; G/ADP/N/1/TUR/3/Suppl.3 and G/SCM/N/1/TUR/3/Suppl.3 of 
13 September 2006; and G/ADP/N/1/TUR/3/Suppl.3/Corr.1 and G/SCM/N/1/TUR/3/Suppl.3/Corr.1 of 12 October 2006.  For the main changes introduced in 1999, see WTO (2003).  WT/TPR/S/192 Trade Policy Review 
Page 42 
 
 
No. 4412/1999 on the Prevention of Unfair Competition in Imports; (ii) Decree No. 13482/1999 on 
the Prevention of Unfair Competition in Imports, amended by Decree No. 9840/200535; and (iii) the 
Regulation on the Prevention of Unfair Compe tition in Imports, as amended in 2002 and 2006.36  The 
provisions of the WTO Agreement on Subsidies a nd Countervailing Duties and the Agreement on the 
Implementation of Article VI of  GATT 1994 would be observed in cas e of any inconsistency between 
domestic legislation and the WT O Agreements (Chapter II(1)). 
40. Imports causing material injury to an industry, constituting a threat of material injury to an 
industry, or causing material retardation of an indu stry to be established in Turkey may be filed for 
investigation under Article 3 of the Law. A dumped  product is a product with an export price lower 
than the "normal" value for the like product.37  The export price is the price actually paid or payable 
for the product when sold for export, while the norma l value is defined as a comparable price paid or 
payable in the ordinary course of trade for the like product when destined for consumption in the 
country of origin or export.38  
41. The Directorate General of Imports of the UFT is in charge of preliminary examination upon 
complaint or ex officio39, where necessary; recommending investigation by the Directorate General to 
the Board of Evaluation of Unfair Competition in Impo rtation; and carrying out such investigations. It 
acts as the secretariat of the Board,  headed by the Director General or Deputy-Director General of 
Imports, which consists of representatives of the Mini stry of Agriculture and Rural Affairs, Ministry 
of Industry and Trade (MIT), the Undersecre tariat of the State Planning Organization, 
Undersecretariat of Customs, the Union of Cham bers and Commodity Exchanges of Turkey, the 
Union of Chambers of Agriculture, and the relevant head of department in the Directorate General of 
Imports. The Board decides on initiating an investig ation. It submits its decision on the provisional 
measures to the State Minister in charge of forei gn trade affairs for approval; evaluates the results of 
an investigation and submits a decision for definitiv e measures to the State Minister in charge of 
foreign trade affairs for approval; and makes proposals in the course of an investigation.   
42. Examinations must be completed within 45 days  (60 days in the previous legislation), and 
decisions to initiate an investig ation must be published in the Official Gazette .40 A complaint on 
behalf of the domestic industry must be supported by domestic producers whose collective output 
constitutes more than 50% of the total production of  the like good. The interested parties are notified 
following initiation of the proceedings. They are sent questionnaires and have a maximum of 37 days 
to respond41; the time-limit may be extended upon request, provided that due cause is shown.  The 
final decision is to be taken within one year from the initiation of the investigation, but, if necessary, 
this may be extended by up to six months (Article  30 of the Regulation).  Provisional measures are to 
be imposed no earlier than 60 days from the initiation of  an investigation, and their duration is limited 
to four months.  However, under Article 12 of the Law, they may be extended for a maximum of six 
                                                      
35 Decree No. 9840/2005 establishes new rules preventing circumvention of anti-dumping duties. 
36 The amendments to the Regulation relate to rule s on imports from non-market economies (published 
in the Official Gazette,  2 May 2002), and rules and procedures to be followed during anti-circumvention 
investigations, interim and expiry reviews, and refund and other investigations ( Official Gazette,  on 26 January 
2006). 
37 Article 4 of the Regulation. 
38 Articles 9 and 5, respectively, of the Regulation. 
39 In the case of fragmented indu stries involving an exceptionally large number of producers, the 
Turkish authorities may decide to initiate an investigation ex officio  provided there is sufficient evidence of 
dumping, injury, and a causal link.  According to the aut horities, so far Turkey has not initiated an investigation 
ex officio .  
40 Article 20 of the Regulation. 
41 Including seven days for the postal procedures. Turkey WT/TPR/S/192 
 Page 43 
 
 
months upon request by exporters with a significant share of the exports of the product to Turkey.  
Definitive measures remain in force for five years from the conc lusion of the most recent review 
investigation that has covered both dumping and injury examination or from the date of their 
imposition.   
43. Turkey has 93 definitive anti-dumping duties in force (27 at the end of 2002), most are 
against China (34), followed by the Separate Customs Territory of Taiwan, Penghu, Kinmen and 
Matsu  (8); India (7); and Thailand (6). The measur es have been applied to mostly textiles and 
clothing, base metal products, plastics and rubber ar ticles, and other manufactures such as lighters and 
pencils. The majority are specific duties; some ad valorem duties are as high as 100%, e.g. on 
motorcycle tubes (Table III.11).   
Table III.11 
Definitive anti-dumping measures in force, July 2007 
Country/ 
customs territory and product Communiqué Imposition of final 
measure Duty 
Belarus 2004/23 20 November 2004 15% 
Polyester synthetic staple fibres    
Belgium    
Polyvinyl chloride 2003/2 6 February 2003 US$25–45/tonne 
Brazil    
Fittings 2006/23 7 September 2006 US$400/tonne  
Bulgaria    
Fittings 2006/24 7 September 2006 US$400/tonne  
China, P. R.    
Fittings 2006/23 7 September 2006 US$800/tonne  
Woven fabrics of synthetic and artificia l staple fibres 2007/10 19 June 2007 87%  
Wall clocks (battery, accumulator or main  powered) 2001/5 7 November 2001 US$2.10/piece  
Woven fabrics of synthetic filament  yarn 2002/2 13 February 2002 70.44%  
Refillable pocket flint lighters  2004/25 20 November 2004 US$0.05/piece  
Non-refillable pocket lighters  2002/4 8 May 2002 US$0.05/piece  
Refillable pocket lighters, gas fu elled with electrical ignition 
system 2002/4 8 May 2002 US$0.05/piece  
Parts of lighter 2002/4 8 May 2002 US$0.03/piece  
Acrylic mink blankets 2002/ 14 8 December 2002 US$4/kg  
Hook and loop 2002/15 13 December 2002 US$3.86/kg  
Pencils with leads of graphite et c. 2003/1 14 January 2003 US$3.16/144 pieces 
Bicycle tyres  2003/6 30 April 2003 33% 
Bicycle tubes 2003/6 30 April 2003 50% 
Motorcycle tyres  2003/7 30 April 2003 37% 
Motorcycle tubes 2003/7 30 April 2003 100% 
Chain (Stud-link, and other welded li nk) 2003/23 20 December 2002 US$331–403/tonne 
Cylindrical door locks (excluding electrom echanicals)  2003/16 31 July 2003 US$1.6/piece 
Other door locks (excluding electromech anicals) 2003/16 31 July 2003 US$1.77/piece 
Only cylinder and case for door locks  2003/16 31 July 2003 US$0.74/piece 
Tempered glass lid/cover 2003/22 20 December 2003 US$0.91/kg 
Hinges of base metal  2004/ 3 7 February 2004 US$1.39/kg 
Hat-racks, hat-pegs, brackets and similar fixtures of base 
metal 2004/3 7 February 2004 US$1.39/kg 
Base metal mountings, fittings and similar articles suitable for 
furniture 2004/3 7 February 2004 US$0.508/kg 
Ball point pens  2004/4 2 March 2004 US$0.066/piece 
Propelling or sliding pencils  2004/4 2 March 2004 US$0.04/piece 
Baby carriages  2004/15 1 August 2004 US$8/piece 
Parts baby carriages (chassis only) 2004/15 1 August 2004 US$5/piece 
Metallized yarn 2004/19 24 September 2004 US$2.2/kg 
Ropes and cables (including locked co il ropes) 2004/24 1 December 2004 US$1/kg 
Textile fabrics, impregnated with polyure thane-leather  2005/2 5 February 2005 US$1/kg 
Textile fabrics, impregnated with polyure thane-others  2005/2 5 February 2005 US$1/kg 
Textile fabrics, impregnated, coated, covered, or laminated 
with polyurethane – leather substitute 2005/2 5 February 2005 US$2.2/kg 
Textile fabrics, impregnated, coated, covered, or laminated 
with polyurethane – others 2005/2 5 February 2005 US$2.2/kg 
  Table III.11 (cont'd) WT/TPR/S/192 Trade Policy Review 
Page 44 
 
 
Country/ 
customs territory and product Communiqué Imposition of final 
measure Duty 
Tools for drilling 2005/3 4 February 2005 US$6/kg 
Tools for milling 2005/3 4 February 2005 US$10/kg 
Slide fasteners 2005/7 12 March 2004 US$3/kg 
Colour TV receivers with integral pi cture tube 2005/16 28 July 2005 50% (c.i.f.) 
New pneumatic tyres, of rubber 2005/ 18 20 August 2005 60%-87% (c.i.f.) 
Skid chain or motor vehicles of iron or steel 2005/19 20 August 2005 US$1,500/tonne  
Universal Ac/Dc motors of an output exceeding 37.5 w 2006/9 4 May 2006 US$1/piece  
Pentaerythritol 2005/14 1 July 2005 US$270/tonne  
Polyethylene terephthalate in pr imary forms 2006/1 27 January 2006 6.5% 
Woven pile fabrics and chenille fabrics 2006/2 27 Ja nuary 2006 US$1.5/kg 
Pre finished engineered laminated flooring 2006/17 8 July 2006 35% 
Wall type split air conditioners 2006/20 28 July 2006 25% 
Granite 2006/25 14 September 2006 US$90/tonne 
V-belts 2007/4 31 March 2007 US$5.04/kg 
Plywood consisting solely of sheets of wood (up to 6 mm 
thickness) 2006/28 20 October 2006 US$240/m3 
Separate Customs Territory of Taiwan, Penghu, Kinmen, 
and Matsu    
Polyester textured yarn 2006/31 21 December 2006 9.9% - 28.6% 
Woven fabrics of synthetic filament ya rn  2002/2 13 February 2002 13.91% - 30.84% 
Hook and loop 2002/15 13 December 20002 US$1.83/kg 
Polyester synthetic staple  2003/14 29 July 2003 6.4% - 20.1% 
Bicycle tyres  2004/22 30 April 2003 30% 
Bicycle tubes  2004/22 30 April 2003 44% 
Motorcycle tyres  2004/21 30 April 2003 6% 
Motorcycle tubes 2004/21 30 April 2003 21% 
Metallized yarn 2004/19 24 September 2004 US$2.2/kg. 
Polyethylene terephthalate in pr imary forms 2006/1 27 January 2006 6.5% 
Finland    
Polyvinyl chloride 2003/2 6 February 2003 US$45/tonne 
Germany    
Polyvinyl chloride 2003/2 6 February 2003 US$25/tonne–
US$45/tonne 
Greece    
Polyvinyl chloride 2003/2 6 February 2003 US$45/tonne 
Hungary    
Polyvinyl chloride 2003/2 6 February 2003 US$45/tonne 
India    
Polyester textured yarn 2006/31 21 December 2000 6.8% - 20.3% 
Bicycle tyres 2003/6 30 April 2003 20% 
Bicycle tubes 2003/6 30 April 2003 64% 
Polyethylene terephthalate in pr imary forms 2006/1 27 January 2006 6.5% 
Fittings 2006/24 7 September 2006 US$305–400/tonne 
Polyester synthetic staple  2003/14 29 July 2003 16.5% - 23.9% 
Metallized yarn 2004/19 24 September 2004 US$2.2/kg 
V-belts 2007/4 31 March 2007 US$3.5/kg 
Indonesia    
Polyester synthetic staple fibres   2006/26 8 September 2006 6.2% - 12% 
Polyethylene terephthalate in pr imary forms 2006/1 27 January 2006 6.5% 
Pre finished engineered laminated flooring 2006/17 8 July 2006 25% 
Fittings 2006/24 7 September 2006 US$253–400/tonne 
Israel    
Polyvinyl chloride 2003/2 6 February 2003 US$25–45/tonne 
Italy    
Polyvinyl chloride 2003/2 6 February 2003 US$25–45/tonne 
Korea, Rep. of    
Polyester textured yarn 2006/31 21 December 2006 33.7%  
Polyester synthetic staple fi bres  2006/26 8 September 2006 10% 
Polyester flat yarns  2006/12 18 May 2006 5.7% - 10.9% 
Woven fabrics of synthetic filament yarn  2002/2 13 February 2002 3.51% - 40% 
Polyethylene terephthalate in pr imary forms 2006/1 27 January 2006 6.5% 
Metallized yarn 2004/19 24 September 2004 US$2.2/kg 
Malaysia    
Woven fabrics of synthetic filament yarn 2002/2 13 February 2002 3.23% - 15.93% 
Vulcanised rubber thread and cord 2004/1 29 January 2004 11.6% - 16.9% 
  Table III.11 (cont'd) Turkey WT/TPR/S/192 
 Page 45 
 
 
Country/ 
customs territory and product Communiqué Imposition of final 
measure Duty 
Polyethylene terephthalate in pr imary forms 2006/1 27 January 2006 6.5% 
Netherlands    
Polyvinyl chloride 2003/2 6 February 2003 US$45/tonne 
Romania    
Polyvinyl chloride 2003/2 6 February 2003 US$25–45/tonne 
Russian Federation    
Steel billets, rolled or obtained by con tinuous casting 2001/3 17 October 2001 US$7/tonne 
Cooper wire rod 2005/24 9 November 2005 3% (CIF) 
Ropes and cables (including locked co il ropes) 2004/24 1 December 2004 US$0.5/kg 
Serbia Montenegro    
Fittings 2006/24 7 September 2006 US$400/tonne 
Sri Lanka    
Bicycle tyres   27 September 2004 50% 
Bicycle tubes   27 September 2004 44% 
Thailand     
Woven fabrics of synthetic filament yarn 2002/2 13 February 2002 8.67% - 30.93% 
Bicycle tyres and tubes 2003/6 30 April 2003 100% 
Motorcycle tyres 2003/7 30 April 2003 68% 
Motorcycle tubes 2003/7 30 April 2003 100% 
Polyester synthetic staple fibres  2003/14 29 July 2003 15.8% - 22.0% 
Polyethylene terephthalate in pr imary forms 2006/1 27 January 2006 6.5% 
Fittings 2006/24 7 September 2006 US$147–400/tonne 
Ukraine    
Steel billets, rolled or obtained by con tinuous casting 2001/3 17 October 2001 US$4/tonne 
Pentaerythritol 2003/19 4 September 2003 US$693/tonne 
Wire of refined copper 2006/14 8 June 2006 6.9% 
United States     
Polyvinyl chloride 2003/2 6 February 2003 US$45/tonne 
Vietnam    
Bicycle tyres  2004/22 27 September 2004 30% 
Bicycle tubes  2004/22 27 September 2004 44% 
Motorcycle tyres 2004/21 27 September 2004 29% 
Motorcycle tubes 2004/21 27 September 2004 49% 
V-belts 2007/4 31 March 2007 US$4.55/kg 
Source : Information provided by the Turkish authorities.  
44. Turkey has never initiated or imposed a countervailing measure. 
(b) Safeguard measures 
45. Turkey has promulgated new legislation on safeguard measures since its last Review. Decree 
No. 735/2004 (published in the Official Gazette  No. 25476, 29 May 2004); and the Regulation on 
Safeguard Measures for Imports ( Official Gazette  No. 25486, 8 June 2004)42 aim to ensure conformity 
both with the relevant WTO Ag reement and CUD obligations.  
46. The UFT continues to have the authority to pr opose, apply, and monitor safeguard measures.  
The Board for the Evaluation of Safeguard Measu res for Imports was established to decide, inter alia , 
whether to initiate an investigation,  and to adopt, review, extend, cha nge or abolish any provisional or 
definitive safeguard measure, as well as to dete rmine the form, extent, and duration of such 
measures.43  
47. Provisional safeguard measures may be applied,  taking national interests into account, in 
critical circumstances where delay would cause damage  that would be difficult to repair and where a 
preliminary determination provides clear eviden ce that increased imports have caused or are 
threatening to cause serious injury to the dom estic producers of like or directly competitive 
                                                      
42 WTO document G/SG/N/1/TUR/3 of 16 July 2004. 
43 Article 4 of Decree No. 735/2004. WT/TPR/S/192 Trade Policy Review 
Page 46 
 
 
products.44  At the end of the investigation, if th e Board decides that safeguard measures are 
necessary, the amount collected as a secur ity shall be forfeited to the Treasury.45  
48. Following an investigation, safeguard measures ma y be applied, subject to a national interest 
clause, where a product is imported in such incr eased quantities and under such conditions as to cause 
or threaten to cause serious injury to the domestic  producers of like or directly competitive products. 
Application is for a period of time sufficient to pr event or remedy serious injury and to facilitate 
adjustment of domestic producers to the conditions of the internal market. The duration must not 
exceed four years, including any provisional measure, unless it is extended.46 If the duration exceeds 
one year, the measure is to be liberalized progressi vely, at regular intervals, during the application 
period. If the duration exceeds three years, the situat ion must be reviewed not later than at the mid-
term of the measure, to ascertain whether is still necessary or to increase the pace of liberalization.47  
49. Turkey has increasingly made use of safeguards over the last few years, imposing definitive 
measures, against all countries, on products such as motorcycles, salt, steam irons, vacuum cleaners, 
footwear, and voltmeters and other meas uring transformers (Table III.12).  
Table III.12 
Definitive safeguard measures in force, 2007 
Country of origin Product Date of imposition of definitive measure 
All countries Activated earths and clays 8 July 2005 
 Certain voltmeters, ammeters  12 August 2005 
 Vacuum cleaners 10 August 2006 
 Steam smoothing irons 10 August 2006 
 Salt  10 August 2006 
 Footwear 10 August 2006 
 Motorcycles 2 March 2007 
China, P. R. Float glass 7 April 2006 
Source : Information provided by the Turkish authorities.  
(vi) Standards and other technical requirements 
(a) Overview 50. Since its previous Review, Turkey has continued to transpose the various elements of the EC 
technical requirements into its domestic legal system, mainly by implementing the legislative framework enacted in 2002
48: Law on the Preparation and Implementation of Technical Legislation 
on Products49; the Regulation on the Notification of the Technical Legislation and Standards between 
                                                      
44 Provisional and/or definitive safeguard measures can take the form of customs duties, additional 
financial charges, restrictions on quantity/value of im ports, tariff quota or a combination of these forms. 
45 Where the amount of the safeguard measure is less than the amount of the provisional measure, the 
difference is refunded.  However, where the amount of the safeguard measure is higher than the provisional 
measure, the difference is not collect ed. If the Board decides that no safe guard measures are necessary, the 
provisional measure is repealed and the amo unt collected as a security is refunded. 
46 The duration of the measure may be extended following a new investigation but must not be more 
restrictive than it was at the end of the initial period, and is to continue to be liberalized.  The total period of 
application of a safeguard measure must not exceed ten years. 
47 A safeguard measure for 180 days or less may be applied again to a product if at least one year has 
elapsed since the introduction of a safeguard measure on that product, and such a measure has not been applied 
on the same product more than twice in the preceding five-year period. 
48 For a description of the main provisions of the 2002 legislation see WTO (2003). 
49 The Framework Law No. 4703, published in Official Gazette  No. 24459, 11 July 2001. Turkey WT/TPR/S/192 
 Page 47 
 
 
Turkey and the EC50; the Regulation on the Affixing and Use of the EC Conformity Marking on the 
Products; the Regulation on Conformity Assessment  Bodies and Notified Bodies; and Regulation 
Relating to the Market Surveilla nce and Inspection of Products.51 Under the CUD, Turkey has 
transposed into its legal system 232 EC directives regarding technical regulations.   
51. There have been no major changes in Turkey's institutional framework relating to standards 
and other technical regulations since its last TPR. According to the authorities, technical regulations 
are for health, safety, environment, and consumer protection purposes. The UFT is the national enquiry point for technical regulations and is r esponsible for receiving, and notifying the WTO of, 
draft technical regulations.
52 Turkey has accepted the Code of Good Practice for the preparation, 
adoption and application of standards. The nati onal enquiry point for standards is the Turkish 
Standards Institution (TSE); and for SPS measures, the General Directorate of the Protection and 
Control of the Ministry of Agriculture and Rural Affairs (MARA).  The UFT grants TSE competence 
to carry out conformity assessment of imports.53 The Directorate General of Standardization of the 
UFT has launched a website to facilitate access to TB T notifications, and to obtain opinions from the 
different stakeholders.54 
(b) Standardization, testing, and certification 
52. The Regime for Technical Regulations and Sta ndardization for Foreign Trade consists of a 
Decree (No. 96/7794), a Regulation, and Communiqu és. It was first put into force in 1995 and 
continues to regulate standardization activities; it was last amended by Decree No. 9454/2005. The regime is transitional and is revised annually in lig ht of progress in the transposition of EC legislation 
into its legal system.  The regime aims to incr ease the competitiveness and safety of exports to ensure 
the same treatment to imported and domestic produ cts, and protect human health, safety, animal and 
plant life, and the environment.   
53. The Turkish Standards Institution (TSE) has been  developing and impl ementing standards for 
products manufactured in or imported into Turkey since 1960. It is an independent institution (not 
funded by the State), responsible for the preparati on and publication of standards for all types of 
materials and products. In addition, it deals with industrial metrology and ca libration, and laboratory 
services for conformity assessment and certification. The TSE is a full member of the International 
Organization for Standardization (ISO) and the Inte rnational Electrotechnical Commission (IEC); it is 
also an affiliate member of the European Comm ittee for Standardization (CEN), and the European 
Committee for Electrotechnical Standardization (CENELEC).
55 According to the authorities, about 
98% of CEN and 93.5% of CENELEC standards have been adopted (e nd August 2007). Recognition 
of testing procedures has been assured by mutual  agreements concluded between Turkey and EC 
member States.  In 1999, TSE became a signatory  to various mutual recognition arrangements 
(MRAs) under the Low Voltage Directive (LVD), i. e. the CENELEC Certifi cation Agreement (CCA), 
the Agreement on the use of commonly agreed  marking for cables and cords complying with 
harmonized specifications (known as HAR), and the common mark of CEN and CENELEC 
                                                      
50 Official Gazette  No. 24715 of 3 April 2002. 
51 The last three Regulations were published in Official Gazette  No. 24643, 17 January 2002, and 
entered into force on 11 January 2002. 
52 In accordance with the Regulation on the Implemen tation of the Notifications Foreseen in the TBT 
Agreement, which entered into force on 15 April 1997. 
53 The scope of inspection services and the exact m ode of operation by TSE are set out annually in 
legislation issued by UFT: currently UFT Communiqué No. 2007/1. 
54 Viewed at: http://www.teknikengel.gov.tr 
55 According to the authorities, TSE has brought its practices and organization in line with EC norms, 
and is ready to apply for full member ship of CEN and CENELEC in 2008. WT/TPR/S/192 Trade Policy Review 
Page 48 
 
 
(Keymark). In 1998, TSE also joined the IEC System for Conformity Testing and Certification of 
Electrical Equipment (known as the IEC-EE CB Scheme), to ensure mu tual recognition of results of 
tests performed in conformity with IEC st andards on safety of electrical appliances. 
54. Technical regulations are prepared by Ministries and/or relevant public authorities and 
published in the Official Gazette ;  standards are prepared by TSE. All Turkish standards developed by 
TSE are voluntary; they become mandatory (tec hnical regulations) through legal instruments 
introduced by relevant Turkish government bodi es. Import controls, on grounds of technical 
regulations, focus mainly on documentation require ments. However, with the ongoing harmonization 
of the Turkish legislation on the EC's technical re gulations, a market surveillance system is to be 
adopted. So far, imports (of products covered by the CUD) from EC countries with a CE mark have 
free access to Turkey, and are not subject to TSE inspection. 
55. TSE carries out certification services related to TS-EN-ISO 9001:2000; TS-EN-ISO 14001; 
TS 13001 (HACCP)56; and TS 18001 (OHSAS).57  Imports by producers with such certificates are 
exempted from inspection as long as they import for their own needs. Imported inputs, for manufactured products certified by TSE, are al so exempted from inspection. About 52,162 TSE 
products/services certificates had been issued as of August 2007. TSE is also involved in quality and 
system certification, and trains and certifies pe rsonnel in quality, environment, health, and safety.   
56. Turkey has 27,512 standards (up from 23,790 in 2003), of which 770 are obligatory (1,264 in 
2003) (Table III.13).
58 Compulsory standards, of which 9% are equivalent to international standards, 
according to the authorities, relate mainly to construction materials, and apply to 164 imported 
products (controlled at the border).  
57. Compulsory standards apply e qually to imports (regardless of the origin) and locally 
produced goods.  Testing and certification pr ocedures are performed by: the TSE on imported 
industrial products; the Ministry of Environment on environment-related products;  and the Ministry 
of Health for medical products, cosmet ics, and detergents.  Controls of, inter alia , imported animals, 
plants, foodstuffs, seeds, and veterinary products , are conducted by the MARA through evaluation, 
based on risk analysis methods. In addition, co mmercial quality controls of certain agricultural 
products, such as fresh fruit and vegetables, dried fr uits, edible oils, and leguminous vegetables are 
performed at the import and export stages by 45 insp ection units under eight regional directorates of 
the UFT, known as Group of Inspectors of Standardization for Foreign Trade.  UFT also has five commercial analysis and standardization labora tories that perform analyses necessary for export 
controls.  Currently, 200 agricultural products (at the HS 12-digit level)  are subject to compulsory 
export quality control. According to the authorities, the standards on these controls are in conformity 
with UN-ECE standards, and the control procedures comply with the OECD scheme.   
                                                     
 
56 Hazard Analysis and Critical Control Points is a systema tic preventive approach to, inter alia , 
identify potential hazards. 
57 The Occupational Health and Safety Management System is an international occupational health and 
safety system specification. Certifi cates under the scope of TS-EN-ISO 9000 and TS-EN-ISO 14001 standards 
have been granted to 3,091 and 303 companies, respectively. 
58 Since a standard may affect produc ts classified under more than one ISIC code, the number of total 
standards that appear in Table III.13 is different from that in the text. Turkey WT/TPR/S/192 
 Page 49 
 
 
Table III.13 
Turkish standards and their equivalence with international standards, 2007 
Area 
(ISIC classification) Total  
Turkish standardsCompulsory 
standards Turkish 
standards 
equivalent to 
international 
standards Equivalencea 
(per cent) 
Generalities, terminology, st andardization 1,160 5 687 59.22 
Sociology, services, company organization, 
management, administration 1,075 7 110 10.23 
Mathematics, natural science 220 0 117 53.18 
Health care technology 1,106 18 444 40.14 
Environment and health protection, safety 2,014 6 1,006 49.95 
Metrology, measurement, physical phenomena 721 4 410 56.86 
Testing 247 0 136 55.06 
Mechanical systems and components for general use 680 116 338 49.70 
Fluid systems and components for general use 1,328 84 694 52.25 
Manufacturing engineering 1,111 18 675 60.75 
Energy and heat transfer engineering 356 12 209 58.70 
Electrical engineering 1,636 51 740 45.23 
Electronics 846 0 354 41.84 
Telecommunication 1,403 17 712 50.74 
Information technology, o ffice equipment 451 0 226 50.11 
Image technology 189 0 148 78.30 
Precision mechanics, jewellery 34 0 29 85.29 
Road vehicle engineering 701 15 218 31.09 
Railway engineering 183 2 45 24.59 
Shipbuilding and marine structures 289 0 169 58.47 
Aircraft and space vehicl e engineering 1,441 0 519 36.01 
Materials handling equipment 432 0 278 64.35 
Packaging and distribution of goods 354 7 181 51.12 
Textile and leather technology 973 43 442 45.42 
Clothing industry 169 3 47 27.81 
Agriculture 1,519 7 259 17.05 
Food technology 1,793 105 546 30.45 
Chemical technology 1,332 13 578 43.39 
Mining and minerals 402 1 227 56.46 
Petroleum and related technologies 930 24 283 30.43 
Metallurgy 1,196 34 733 61.28 
Wood technology 403 13 214 53.10 
Glass and ceramics industries 359 13 171 47.63 
Rubber and plastics industries 936 17 484 51.70 
Paper technology 230 4 138 60.00 
Paint and colour industries 369 18 169 45.79 
Construction material and building 1,984 73 956 48.18 
Civil engineering 459 24 145 31.59 
Military engineering 131 0 1 0.07 
Housekeeping, entertainment, sports 906 16 457 50.44 
TOTAL 32,068 770 14,295 44.04 
a Percentage of total Turkish standards equivalent to international standards. 
Source : Information provided by the Turkish authorities.  
58. Under Law No. 1705, the General Directorate of  Measures and Standards of the MIT is also 
responsible for quality control systems concerni ng legal metrology, establishment of calibration 
systems of test laboratories, and operating private laboratories in accordance with the law.59 The MIT, 
                                                      
59 Measurement and Calibration Law No. 3516 of 1989. WT/TPR/S/192 Trade Policy Review 
Page 50 
 
 
through its network of provincial offices, is carryin g out surveillance activities; the Ministry of Health 
has started implementing its market surveillance st rategy in the area of toys and medical devices; 
while the Telecommunications Authority has c ontinued its own market surveillance activities.60 Under 
Laws Nos. 5015 and 5307, the Energy Market Regulatory Authority has commenced market 
surveillance activities in the petroleum and LPG markets to ensure quality of fuel and LPG.   
59. The Turkish Accreditation Authority (TURKA K), established on 4 November 2000 through 
Law No. 4457, started operations in June 2001. It is  responsible for accrediting domestic and foreign 
bodies and making sure that they carry out labora tory, certification, and inspection services, in 
accordance with national and international standard s. Turkey has almost 5,000 public and private 
laboratories, and 120 certification bodies, and TURKAK has accredited 132 laboratories and 44 
certification bodies. TURKAK is a full member of both the European Cooperation for Accreditation (ECA), and of the International Labor atory Accreditation Cooperation (ILAC).
61  
60. Over the last few years, Turkey has also concluded various cooperation agreements,  for 
example with China, EFTA members, Israel, the Russ ian Federation, and Ukrain e, on standardization, 
metrology, and conformity assessment.   
(c) Marking, labelling, and packaging 
61. There has been no major change in Turkey's marking, labelling and packaging legislation 
since its previous Review.  While almost all voluntary standards cover marking, labelling, and 
packaging, there are three major compulsory st andards on these issues: TS 4331 on marking, labelling 
and packaging of materials and products that ar e supplied packaged into the market; TS 1418 on 
labelling of textile products; and TS 6429 on mark ing by colours or alphanumeric system for 
electrotechnical purposes. Clearly legible and visibl e labels must be affiexed on retail goods, their 
packaging or their containers, displaying price, place of production, and distinctive characteristics. 
Where it is not possible to affix such labels on a particular good, clearly visible and accessible lists 
containing this information must be prepared and displayed.62  
62. All imported products must be labelled with their country of origin, distinctive characteristics, 
and price.63  With the exception of a few products, operating, user, and maintenance instruction 
manuals must be in Turkish a nd accompany each industrial product.64 Moreover, shoes offered for 
sale must display information about their main parts.  For safety reasons, where goods and services offered to consumers may constitute a threat to th e consumer's physical or mental health or the 
environment, it is obligatory to include information and warnings concerning this threat in a clearly 
                                                     
 
60 European Commission (2006). 
61 In May 2006, the Testing Accreditation Agency signed the ILAC Multilateral Recognition 
Agreement (MRA). 
62 Article 12 of Law No. 4077 on Consumer Protection, as amended by Law No. 4822 of 2003. 
63 Article 5 of Implementing Regulation on Labels, Tariffs and Price Lists, and Article 12 of the 
Consumer Protection Law. 
64 Article 5 of Implementing Regulation on the Application Principles of Introductory User Guides; 
based on Article 14 of Law No. 4077 of User Guides. Exempted products include:  certain kinds of metal; PVC; polyethylene; plastic pipes; connecting parts; bolts; handcuffs; screws; nuts; nails; pins; and similar connecting 
elements; paper; erasers; pencils; and similar stationary materials;  shovels; pickaxes; rakes; barrows; and 
similar agricultural products;  towels; belts; trousers suspenders; buttons; zip fasteners and similar clothing parts;  some construction materials;  some households appliances;  handicrafts; jewellery and similar products; 
and the following products sold in a package with a usag e description: mineral oils ; anti-freeze; h ydraulic oil; 
matches; fertilizers; and some chemical products; paints ; cements; lime; and similar products; food and drinks; 
cleaning products; and coal and similar products. Turkey WT/TPR/S/192 
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legible and visible manner on the good or in the attached users' guides.65  The same marking, 
labelling, and packaging requirements apply to dom estic and imported products and, according to the 
authorities, are based on international regulations. Ma rking, labelling, and packaging of a product can 
be carried out at customs.66  
63. The marking, packaging, and labelling of pha rmaceuticals are regulated by the Decree on 
Labelling and Packing referring to Law No. 1262.  Ma rking, packaging, and labelling of cosmetics are 
regulated by the Decree referring to the Law No. 3977.   
(d) Sanitary and phytosanitary regulations 64. The importation and production of pharmaceutical s, drugs, some medical products, cosmetics, 
detergents, foodstuffs and contact materials (e.g. packaging), fishery products, and agricultural, 
animal, and veterinary products are subject to hea lth and sanitary controls. Turkey's main legislation 
in this area is contained in: Sanitary Law No . 1593 of 1930, Plant Protection and Agricultural 
Quarantine Law No. 6968 of 1957, Law on Animal Health Control (Law No. 3285 of 1986, as amended by Law No. 4648 of 2001), Fishery La w No. 1380 as amended by Law No. 3288 of 1986, 
and Law on Production, Consumption and Inspecti on of Foods (Law No. 5179 of 2004).  No 
distinction is made between domes tically produced and imported goods.   
65. Imports of agricultural products and foodstuffs require a "control certificate" issued by the 
MARA
67; imports of pharmaceutical products, drug s, certain consumable medical products, 
cosmetics, and detergents require a control cer tificate issued by the Ministry of Health.68  In order to 
obtain a control certificate, depending on the type  of product, the following documents must be 
presented to the relevant Ministry: a  pro forma invoice, a health certificate,  a certificate of analysis, a 
formula or list of contents of the product, a pedigree certificate, and a radiation analysis report. All documents must be obtained from and/or approved  by the relevant authorities in the producer 
country.
69  Documents must be in the original language and a translation into Turkish is required.  
Control certificates must be presented to custom s authorities upon import. The period of validity of 
control certificates ranges from four to tw elve months, depending on the product.   
66. Since its last Review, Turkey has continued harmonizing its sanitary and phytosanitary 
regulations with the EC, Codex Alimentarius Comm ission, OIE, and other international norms. This 
has been done on the basis of Law No. 5179 of 2004 on Production, Consumption and Inspection of Foods ( Official Gazette,  5 June 2004) and the Turkish Food Codex Regulation (FCR) ( Official 
Gazette,  16 November 1997). Turkey has transposed some of the acquis by adopting legislation on, 
inter alia , packaging materials and food for particular nutritional uses.   
67. Turkey has signed cooperation agreements to  prevent animal diseases from entering the 
country through trade in and transit of live anim als and animal products, veterinary medications, 
                                                     
 
65 Article 18 of Law No. 4077 on Consumer Protection, as amended by Law No. 4822. 
66 Article 102 of the Customs Law and Article 292 of the Customs Regulation. 
67 Annex VI of the Communiqué on the Standardizatio n in Foreign Trade sets two lists: List A for 
products subject to control certificates ; and List B for the other products.  
68 In some cases, the certificate can be waived if the importer assures the authorities that the products 
are destined for specified purposes or for the manufacturer's own use. 
69 In the case of food and food contact materials, only health certificates must be obtained and/or 
approved by the relevant authorities in the producer country. WT/TPR/S/192 Trade Policy Review 
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fodder, and other products that may affect animal health.70  Moreover, bilateral agreements on a 
product by product basis have been signed with Belg ium, France, Germany, Italy, the Netherlands, 
New Zealand, the United Kingdom, and the United St ates in relation to the use of sanitary and 
phytosanitary certificates.   
68. Turkey faced its first avian influenza (AI) outbreak in October 2005, but further outbreaks 
have followed. Vaccinations campaigns against new strains of foot-and-mouth disease (FMD) have 
been implemented, and continued for other diseases,  such as brucellosis, sheep and goat plague, 
anthrax, sheep and goat pox, bluetongue, and Ne wcastle disease and rabies. According to the 
authorities, to prevent the expansion of epid emic diseases, including Bovine Spongiform 
Encephalopathy (BSE), Turkey maintains a tempor ary import ban on live animals (dairy and beef 
cattle, sheep, goats, and poultry) and meat (beef, sheep, goat, and poultry) based on sanitary 
considerations (Article 7 of the Law on Animal H ealth).  Since 2002, a new BSE surveillance system 
has been in place in Turkey.71  
69. Since the establishment of the WTO, three main c oncerns have been raised against Turkey in 
the WTO SPS Committee concerning Turkey.72 The first was on Turkey's import ban on livestock, 
related to FMD, raised by the United States and then by Hungary.73  The second was raised by 
Hungary on Turkey's ban on pet food imports from a ll European countries related to transmissible 
spongiform encephalopathy (TSEs) as a result of the BSE epidemic.74 The third case was raised by 
Ecuador about Turkey's control certificates for banana imports.75  
70. Under the Law on Agricultural Quarantine, live animals (cattle, sheep, goats, cats, and dogs) 
entering Turkey must be quarantined for 21 days at the place of destination or quarantine centre. 
Veterinary tests already undertaken in foreign countries may be carried out again in Turkey.  
(vii) Government procurement 
71. No major changes have been made to the govern ment procurement regime in Turkey since its 
previous TPR. The regime comprises: (i) P ublic Procurement Law (PPL) No. 4734 of 2002, as 
amended; (ii) Public Procurement Contracts Law No. 4735 of 2002, as amende d; (iii) Regulation on 
Implementation of Services Procurements; (i v) Regulation on Implementation of Goods 
Procurements; (v) Regulation on Implementation of Works Procurements; (vi) Regulation on 
Implementation of Consultancy Services Procurements; and (vii)  Regulation on Administrative 
Applications against Procurements.76 Some concerns have been expressed over the lengthy and often 
                                                      
70 Turkey has signed cooperation agr eements with Algeria, Bulgaria, Germany, Iran, the Netherlands, 
Syria, and Tunisia.  Negotiations con tinue with Albania, Azer baijan, Croatia, Czech Rep ublic, Georgia, Kuwait, 
Macedonia, Russian Federation,  Slovakia, and Ukraine. 
71 This consists of inspection and monitoring of samples taken randomly from cattle that died or were 
slaughtered after showing neurological symptoms, a nd cattle slaughtered at 30 months and above. 
72 WTO document G/SPS/GEN/204/Rev.6 of 19 May 2006. 
73 This complaint was supported by Australia, the EC, New Zealand, and Uruguay.  The United States 
has reported that its concerns were resolved (WTO do cument G/SPS/GEN265 of 10 Ju ly 2001), while those of 
Hungary are still outstanding.  
74 Hungary requested consultations under the DSU on 5 May 2002. In June 2004, Turkey reported that 
the ban on imports of pet foods from Hungary had been lifted and the issue had been resolved (WTO document 
G/SPS/GEN/204/Rev.6/Add.3, 19 May 2006). 
75 Formal consultations were requested by Ecuador on 10 September 2001. This case was settled 
bilaterally (WTO document WT/DS237/4 of 29 November 2002). 
76 WTO (2003) describes the main changes introduced to Turkey's government procurement framework 
in 2002. Turkey WT/TPR/S/192 
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complicated tender procedures.77 The Parliament is considering three government procurement draft 
laws that aim to, inter alia , simplify and accelerate the entire procurement process (e.g. by shortening 
the time limits for both review of complaints, and publication of notices); and regulate procurement 
procedures of entities operating in water, energy, transport, telecommunications, and postal services.78 
These draft laws also aim to bring Turkey's domestic framework closer to the EC's acquis .  
72. The PPL (Article 53) established the Public  Procurement Authority (PPA) as an 
administratively and financially autonomous body with a link to the Ministry of Finance.  The PPA's main responsibilities are to ensure the effective im plementation of the PPL and the proper application 
of the rules and procedures during tender proceedings .  The PPA is composed of the presidency, the 
Public Procurement Board (PPB), and service units .  The PPB is the PPA's main decision-making 
body.  It also examines complaints and may take  corrective action and determine the remedies, cancel 
the tender decision, and terminate the tender proceedi ngs, or decide that the complaint is irrelevant.
79  
Final decisions by the PPA/PPB are to be taken within 45 days after a complaint is made.  During the 
last few years, the PPA has made efforts to trai n procurement officers across the country, and has a 
web site to disseminate information.80 Turkey is also planning to introduce modern procurement 
techniques, such as e-procurement.   
73. The PPL covers most public entities and institu tions governed by public law or under public 
control or using public funds (Articles 1 and 2); th ere is a separate section regulating the procurement 
of consultancy services (Articles 48-52).  The excep tions to the PPL are: procurement of goods and 
services by certain public institutions (e.g. public banks81; operators in the telecom, transport, energy, 
and water subsectors); procurement related to defe nce, security, and intelligence needs; procurement 
to be carried out through foreign financing pursu ant to international agreements; purchases of goods 
and services for research and development projects; pr ocurement related to agriculture and livestock; 
purchases from the State Supply Office (DMO); and pr ocurement by public en tities abroad, such as 
embassies and consulates. The thresholds above whic h foreigners are entitled to participate in tenders 
opened in Turkey (Article 8) ar e: YTL 529,111 for of goods and services for entities operating under 
the general or the annexed budge t; YTL 882,352 for goods and services for other entities within the 
scope of the PPL; and YTL 19.4 million for constr uction for administrations covered by the PPL.82  
74. Under Article 63 of the PPL, a 15% price preferen ce is granted to domestic tenderers, if the 
PPA, the MIT, and other relevant departments conclude that the supplies are of domestic origin.83  
However, this provision is not applicable to domestic  bidders in joint-ventures with foreign tenderers.   
                                                      
77 USTR (2006). 
78 These are: a draft law amending the PPL, a draft La w on Public Procurement for Utilities, and a draft 
Law on Assignment of Certain Investment and Services (including concessions). 
79 The ten members of the PPB are a ppointed for five years (they cannot be re-elected) by the Council 
of Ministers. 
80 PPA online information is available at:  http://www.kik.gov.tr. 
81 Procurement by public banks, for example, is subject to the Banking Act No. 4603. Nevertheless, 
construction tenders by banks are within the scope of the PPL. 
82 The thresholds and monetary limits specified in the PPL are updated annually by the Public 
Procurement Authority (PPA) on the basis of the Index of  Wholesale Prices of the previous year. They are 
published in the Official Gazette , and are effective as of 1 February of each year.  In cases of emergency, the 
thresholds may be further updated upon the proposal of the PPA subject to approval by the Council of Ministers (Article 67). 
83 In order to receive the price preference, domestic te nderers must apply for a certificate of origin; this 
is issued by the chamber of commer ce in the area where the go ods  where produced, on presentation of certain 
documents (e.g. industrial certificate of registration issued by MIT, food certificate of registration from MARA). WT/TPR/S/192 Trade Policy Review 
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75. Three tendering procedures are specified in the PPL: (i) open tenders (Article 19), where all 
tenderers may submit tenders, and notices are published not less than 40 days prior to the launch of 
the tendering process; (ii) restricted tenders (Artic le 20), where, following an open invitation to pre-
qualify, tenderers are invited by the contracting entity to submit tenders84; and (iii) negotiated tenders 
(Article 21), which applied under cer tain conditions, for example if at the end of open or restricted 
procedures, no tender is submitted, and when it is impossible to define the technical and financial 
aspects.85 Open and restricted tenders are the main procedures. Direct procurement may be used under 
certain circumstances, for example, if the needs can be supplied by only one real or legal person, or 
when the procurement does not exceed YTL 28, 800 for contracting entities within metropolitan 
municipalities, or YTL 9,624 for other contracting entities.86  
76. The contracting officer is required to notify the results of the bid evaluation to all those who 
have submitted tenders.  In the event that the wining  bidder does not take the contract, it is given to 
the second most advantageous bid.  Furthermore, th e Public Procurement Contracts Law sets out the 
principles and procedures concerning the issuance  and implementation of the contracts awarded 
according to the PPL, and deals with contract issues such as required content, limitations to carrying-
over, and regulations on their cancellation.   
77. With the exception of certain products that it produces itself, the DMO procures goods (under 
the PPL framework) from the domestic and foreign mark ets if necessary, and resells them to public 
institutions at a price applicable across the count ry.  The DMO was a central procuring entity and 
reseller to other public institutions even before the enactment of Law No. 4734;  its procurement 
procedures are covered by the PPL. All public in stitutions covered by the PPL must purchase goods 
directly from the DMO if these goods are on a list announced by the DMO at the beginning of each 
year.87 The goods include paper and cardboard products , stationery and office materials, office 
machines and tools, furnishings, lighting and hea ting apparatus, cleaning equipment, vehicles and 
their apparatus, and other office stocks.  The DMO procures goods and services for the buyers 
specified under Article 6 of the Main Status of the State Supply Office.88 
78. Since June 1996, Turkey has participated  as an observer in the WTO Committee on 
Government Procurement.89  
(viii) Local-content requirements 
79. The authorities indicate that Turkey maintain s no local-content require ments for incentive 
purposes.  However, under the public procurement regime , supplies of Turkish origin are eligible for a 
price preference of up to 15% (section (vii)).   
                                                      
84 Pre-qualification notices are published not less than 14 days in advance of the deadline for the pre-
qualification application, and a letter of invitation to tende r is sent to all pre-qualified candidates at least 40 days 
before submission. 
85 In these cases, the procurement process is conduct ed in two stages: initial proposals cover aspects 
such as technical details and methods for fulfilling the re quirements of the contract; and then final offers are 
presented, including the tender price. 
86 There is no requirement to publish a tender notice in the case of direct procurement. 
87 Article 3(e) of PPL No. 4734. The notice on purchases from the DMO was first published by the 
Ministry of Finance in the Official Gazette,  25 February 2003. 
88 Published in the Official Gazette  No. 26512, 4 May 2007. 
89 WTO document GPA/M/2 of 23 July 1996. Turkey WT/TPR/S/192 
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(ix) Countertrade 
80. Turkey continues to use two main types of countertrade practices: barter/counter-purchase, 
and offset.90 Barter/counter-purchase is conducted through an official procedure91, whereas offset is 
managed by either the UFT or the Unde rsecretariat of Defence Industry (UDI).92 All companies are 
allowed to conduct barter and counter-purchase  in accordance with established procedures.  
Applications are made to the Exporters' Union.   
81. In 2005, barter/counter-purchase trade amounted to US$6.2 million (US$9.7 million in 2002), 
covering jewellery, ceramics, iron and steel, and suga r cane.  Two offset projects in civil aviation, 
initiated in 1998 and 2000, ar e to be terminated in 2008 and 2010, respectively.   
(x) Other measures 
82. Turkey has used restrictions for balance-o f-payments reasons under Article XVIII:B of GATT 
several times since 1967.  Turkey last disinvoked this Article on 1 January 1997.   
83. Turkey has no agreements with foreign govern ments or enterprises designed to influence the 
quantity or value of goods and services exported to Turkey. Furthermore, the authorities are aware of 
no such agreements between companies ope rating in Turkey and foreign enterprises.   
84. Turkey applies no trade sanctions, either nati onally or internationally, other than those 
endorsed by the United Nations Security Council or other regional organizations of which it is a 
member.   
85. Compulsory reserve stocks are set for oil products (Chapter IV(3(iii)(b)).  
(3) M EASURES DIRECTLY AFFECTING EXPORTS  
(i) Registration and documentation 86. Similar registration and documentation require ments apply to exporters and importers 
(section (2)(i) above).  In addition, exporters are required to register with the Exporters Union and 
their local chamber of commerce.  A fee of between 0.05% and 0.5% of the f.o.b. value of exports is 
charged as a service commission.   
87. Registration requirements are still in force fo r: exports of goods eligible for premium 
deduction under the Support and Price Stabilization Fund (SPSF); goods paid for by the SPSF; 
exports within the framework of special accounts for repayment of instalments established on credits 
through barter; exports under the Natural Gas Agre ement between Turkey and the Russian Federation; 
exports of goods under restric tions applicable to countries th at are implementing quantitative 
restrictions on Turkish exports;  exports to co untries under the UN economic sanctions resolutions; 
goods certified under the "Fundamentals and Implem entation of Organic Farming" regulation
93; 
                                                      
90 Barter/counter-purchase is used mainly with countries with an underdeveloped banking system or 
facing foreign exchange difficulties. Offset compensates import expenditures with export revenues, and helps to 
bring in new technology and high-tech investment. 
91 Barter/counter-purchase practices are regulate d by the Export Regime Decree, and Communiqué 
No. 4/2006 on Exportation Made through Counter-Purchase or Barter (published in the Official Gazette  on 
6 June 2006). 
92 Offset practices are regulated by Communiqué No. 6/2007, replacing Communiqué No. 27/1998. 
93 Official Gazette  No. 25841, 10 June 2005. WT/TPR/S/192 Trade Policy Review 
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exports of unprocessed olive oil and processed bulk  or barrelled olive oil, liquorice root, raw 
meerschaum and sample pipe; exports of goods c overed by the Vienna Ag reement regarding the 
protection of the ozone layer, as well as the re lated protocols and ame ndments; and exports of 
unprocessed olive in bags, sacks or boxes, livestock,  bulk conic pepper, raw olive (unfermented), 
scrap of copper and zinc, marble, gherkin, and ceme nt. Registration is on a case-by-case basis at the 
time of each export transaction.94 
88. For goods covered by the CUD and destined fo r EC member countries, the Undersecretariat 
of Customs may authorize exporters to issue movement certificates (known as A.TR), without 
submitting them for endorsement by the relevant authorities.  Such authorization may be granted to 
exporters:  that make frequently consignments, who have not been i nvolved in any serious or repeated 
offence against customs or tax legislation, and wi th records that can be checked by the customs 
authorities. This kind of authorization is not yet possible for exports to Israel, Macedonia (FYR), Croatia, Bosnia-Herzegovina, Morocco, Palestinian Aut hority, Syria, Tunisia, and Egypt due to lack 
of detailed legislation;  this is under preparation.   
(ii) Export taxes 
89. Turkey applies export taxes at a rate of US$0.5 per kg on raw skins (HS 41.01, 41.02, and 
41.03; excluding processed raw skins); and US$0.04 per kg for unshelled hazelnuts, and US$0.08 per kg for shelled hazelnuts.
95 The taxes finance the SPSF.  
(iii) Export prohibitions, controls, and licensing 
90. Turkey prohibits exports of 14 items (by broad category) for environment, health or cultural 
reasons, or to give effect to obligations under in ternational conventions (Table III.14). Dual-use and 
"sensitive" goods are subject to export licensing by  the UFT under the Export Control of Dual-Use 
and Sensitive Goods Communiqué.96  In addition, exports of chemicals, listed in annexes II and III of 
the Convention on the Control of Chemical Weapons, are subject to export licensing. 
91. Each firm producing oil products is subject to  an export quota of 35% of production.  An 
export licence is required for 25 categories of products  (Table III.15).  Exporters of these items must 
obtain permission from the relevant authorities.   
92. The Decree on the Regime of Technical Regula tions and Standardization for Foreign Trade 
empowers the Government to make goods for export  subject to quality control; to set the type of 
quality control applicable to such commodities; an d to prohibit exports of these commodities unless 
accompanied by a Control Certificate issued by the UFT. The UFT is responsible for enforcing 
quality control of these commodities. Some 200 agricu ltural products (at the HS 12-digit level) are 
subject to compulsory export controls for quality purposes.  The coverage, broadly unchanged since 
Turkey's previous TPR in 2003, includes citrus fruit, apples, groundnuts, a variety of edible oils, dried 
apricots, dried figs, and some hazelnuts.   
                                                      
94 These products are designated under Communiqué No. 2006/7, published in the Official Gazette  No. 
26190 of 6 June 2006. 
95 Decree of the Council of Ministers published in Official Gazette  No. 89/10306 of 23 July 1997. 
96 Communiqué No. 2003/12 of 2 December 2003. Turkey WT/TPR/S/192 
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Table III.14 
Export prohibitions, 2007 
Description of item Invocation of 
WTO Article Domestic/International law 
Angora goats (1 item)a Environment 
(Article XX:g) Law on the Amelioration of Animals (No. 904 of 
7 June 1926) 
All game and wild animals (except wild pig, wolf, jackal, fox, marten, badger, snake, turtle, and lizard) 
alive or meat and/or pieces and garments thereof (Ch. 1 
and 2)
a Environment 
(Article XX:g) Decision of the Council of Ministers (No. 234 of 
8 March 1990) 
Natural flower bulbs (1 item) Environment 
(Article XX:g) Export Regime Decree (No. 7623 of 22 
December 1995) 
Tobacco seedlings and tob acco plants  (2 items)a Environment 
(Article XX:g) Law on Tobacco and Tobacco Monopoly (No. 1177 of 
9 May 1969)  
Dates "Phoenix the ophrasti crenter" (1 item) Environment 
(Article XX:g) Export Regime Decree (No. 7623 of 
22 December 1995) 
Indian hemp (1 item)a Health 
(Article XX:b) Law on the Controls of Narcotics (No. 2313 of 
24 June 1933) 
Pterocarya carpinifolia (1 item) Environment 
(Article XX:g) Export Regime Decree (No. 7623 of 
22 December 1995) 
Liquidamber orientalis (1 item) Environment 
(Article XX:g) Export Regime Decree (No. 7623 of 
22 December 1995) 
Plants of olive, fig, hazel nut, pistachio, and grapevine 
(sultanas seedless) Environment 
(Article XX:g) Export Regime Decree (No. 7623 of 
22 December 1995) 
Ozone depleting substances (1 item) Health; IAb 
(Article XX:b,d) Vienna Convention; Montreal  Protocol on Substances 
that Deplete the Ozone Layer; London Amendments to 
the Montreal Protocol 
Walnut, mulberry, cherry, pear, plum, badger, ash, elm, 
and lime in logs, in timber, in plank and in sketch 
(Ch. 44)a Environment 
(Article XX:g) Decision of the Council of Ministers (No. 8186 of 
24 April 1974) 
Wood and wood charcoal (excluding charcoal produced from covering of fruit) (Ch. 44) Environment 
(Article XX:g) Export Regime Decree (No. 7623 of 
22 December 1995) 
Antiques and archaeological works (1 item)a National treasures
(Article XX:f) Law on Ancient Works of Art (No. 2863 of 21.7.1983) 
Sahlep (powder and of all sorts)  .. Export Regime Decree (No. 7623 of 
22 December 1995) 
.. Not available. 
a Export prohibited in 1993. 
b IA:  Undertaken in pursuance of obligations under intergovernmental commodity agreements.  
Note: Number of items refers to the Harmonized  System classification at the four-digit level. 
Source : WTO Secretariat, based on informati on provided by the Turkish authorities.  
Table III.15 
Exports requiring a licence, 2007 
Description of items Authority responsible Legal basis 
Military weapons and ammunition 
(excluding sporting and hunting shotguns) Ministry of National Defence Law No. 5201 of 3 July 2004 
Opium and poppy seeds Ministry of Health Law No. 2313 of 24 June 1933 
Addictive and psychotropic substances Minist ry of Health Law No. 2313 of 24 June 1933 
Addictive substances stated in the Psychotropic Agreement dated 1961, revised in 1972;  
Psychotropic Agreement dated 1971;  
and UN Agreement (dated 1988) to prohibit addictive substances 
Products subject to Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal Ministry of Environment and Forestry  Decree No. 94/5419 of 7 March 1994 
  Table III.15 (cont'd) 
  
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Description of items Authority responsible Legal basis 
Living or non-living boars, wolves, 
jackals, foxes, martens, badgers, snakes, 
turtles, lizards, and identifiable parts of 
and clothing produced from them Ministry of Environment and Forestry Decree No. 90/234 of 8 March 1990 
Fertilizers (excluding chemical fertilizers) Ministry of Agri culture and Rural Affairs  Decrees No. 2/1771 of 27 December 
1924;  No. 6/4090 of 19 December 1964 
Seeds (except forest-tree seeds) Ministry of Agricu lture and Rural Affairs  Law No. 5553 of 31 October 2006 
Communiqué No. 96/31 of 19 
September 1996 
Fishing products subject to the prohibition 
derived from the principles of fishery 
(including leeches) Ministry of Agriculture and Rural Affairs Law No. 1380 of 22 March 1971 (as 
amended by Law No. 3288 of 28 May 
1986) 
Racehorses  Ministry of Agriculture and Rural Affairs Law No. 904 of 7 June 1926 
Feeds covered by the Feed Law  Ministry of Agri culture and Rural Affairs Law No. 1734 of 29 May 1973 
Agricultural medicine and equipment Ministry of Ag riculture and Rural Affairs Law No. 6968 of 15 May 1957 
Pharmaceuticals for veterinary purposes Ministry  of Agriculture and Rural Affairs Law No. 3490 
Export of natural flower bulbs subject to 
quota or any other kind restrictions Ministry of Agriculture and Rural A ffairs Decree No. 95/7623 of 22 December 
1995 
Live animals kept for breeding  Ministry of Agricultu re and Rural Affairs Decree No. 95/7623 of 22 December 
1995 
Natural mushroom (only exports to EC 
countries)  Ministry of Agriculture and Rural A ffairs Decree No. 95/7623 of 22 December 
1995 
Live tuna fish (Thynus thunnus) Ministry of Agricultu re and Rural Affairs Decree No. 95/7623 of 22 December 
1995 
Substances listed in the annexes to the Wassenar Arrangement and the Australian Group Undersecretariat for Foreign Trade Wa ssenar Arrangement list for Dual-use 
Goods and Technologies and in the Australian Group Chemical Precursors 
Endangered species of wild fauna and flora Ministry of Agriculture and Rural Affairs, and 
Ministry of Environment and Forestry
  Convention on International Trade in 
Endangered Species of Wild Fauna and Flora (CITES) 
Chemicals listed in the annexes to the Convention on the Control of Chemical Weapons Undersecretariat for Foreign Trade Convention on the Prohibition of the 
Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction  
Technology and equipment used for nuclear purposes Turkish Atomic Energy Authority Decree No. 23965 of 15 December 
2000 
Goods covered by the Missile Technology 
Controlling Regime Ministry of National Defence Decree No. 5201of 29 June 2004 
Natural gas Energy Market Regulatory Authority Law No. 4646 of  2 May 2001 
Electricity Energy Market Regulatory Authority Law No. 4628 of 3 March 2001 
Liquefied petroleum gases Energy Market Re gulatory Authority Law No. 5307 of 13 March 2005 
Source:  Information provided by the Turkish authorities.  
(iv) Export subsidies, finance, assistance, and promotion 
93. In addition to duty and tax concessions (secti on (2)(ii)(c)), various incentives schemes are 
available to exporters, although some have been eliminated.97 Under the Export Subsidy Programme 
for Agricultural Products98, 16 agricultural or processed agricultural products receive debts 
deductions, based on a percentage of the quan tity of goods exported (Chapter IV(2)(ii)).   
                                                      
97 In the Uruguay Round, Turkey committed itself to reduce export subsidies by 24% in value and by 
14% in volume for 44 agricultural products (WTO definition) in equal instalments over a ten-year period 
starting on 1 January 1995 (SWTO, 1998). 
98 Decree No. 2007/1 of the Money-Credit and Coordination Council published in the Official Gazette,  
22 March 2007, which replaced Decree No. 2006/1. Turkey WT/TPR/S/192 
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94. The Export Credit Bank of Turkey (Turk Eximba nk), a state-owned bank established in 1987, 
and Turkey's only official export credit agency, still operates a large number of export credit, guarantee, and insurance schemes.
99 Turk Eximbank's main objectives are: increasing the volume of 
Turkish exports; developing new export markets; increasing the share of Turkish exporters in 
international trade; diversifying exports of g oods and services; and sup porting Turkish exporters, 
investors, and overseas contractors. Turk Eximba nk regularly presents its annual programmes to the 
Supreme Advisory and Credit Guidan ce Committee, chaired by the Stat e Minister in charge of the 
bank's activities.  This Committee fixes upper limits of  credit to be extended by the bank, guarantees 
to be issued, and insurance transactions to be eff ected, either as a total amount or by country, sector, 
and programme.100 In 2006, Turk Eximbank's credit progra mmes amounted to about US$7.8 million, 
and provided financial support for over 9% of Turkey's total annual exports.101  
95. Turk Eximbank supports exporters, export-orien ted manufacturers, and foreign investors with 
short-term export credit, and medium- and long-term export cr edit programmes (Table AIII.4). 
Moreover, export receivables are discounted in order to promote sales on deferred payment 
conditions, and to increase export vo lume. Short-term financial assistance is made available to 
exporters at the pre-shipment and post-shipment st ages with a term up to 360 days (for credits in 
YTL) and 540 days (for credits in foreign currency).102  Credits are allocated through the Turkish 
commercial banks or direct ly by the Turk Eximbank.103  In 2006, 67% of short- term credits offered by 
Turk Eximbank were extended via intermediary Turk ish commercial banks, and 33% directly.  At the 
end of 2006, short-term export credit facilities ac counted for 90% of Turk Eximbank's total loans.   
96. Turk Eximbank's  medium and long-term financial suppor t programmes have been developed 
mainly for the export of capital goods and turnkey i nvestment projects to be undertaken by Turkish 
and Turkey-based contractors. The majority of these programmes involve extending financing 
facilities to buyers outside of Turkey for purchase Turkish goods and/or services. For many medium- and long-term operations (e.g. project finance lo ans), a sovereign guarantee in favour of Turk 
Eximbank has been a pre-requisite for extension of the facility.   
97. The Turk Eximbank also offers Turkish expo rters, investors, and overseas contractors a 
variety of insurance policies against commercial and political risks (Table III.16). Commercial risk-
based losses, are indemnified by Turk Eximbank from its own resources, while political risks are, in 
principle, backed by the Government.  Since 2000, short-term political risks have also been ceded to 
the reinsurance panel within certain country limits .  Premium rates for insurance programmes range 
from 0.19% to 4% (comprehensive for commercial and political risks), or from 0.05% to 4% (for 
political risks only), and vary according to the risk category of the buyer's country, the payment term, 
and the status of the buyer (private, public or sovereign).   
                                                     
 
99 Turk Eximbank is under the responsibility of the Prime Ministry or such other State Ministry 
nominated by the Prime Minister. Turk Eximbank's main sources of funds are direct  funding from the Turkish 
Treasury (through capital injections), and borrowin g from commercial banks and international financial 
markets. 
100 The programmes may be revised, eliminated, or extended according to the requirements of Turkish 
exporters and international rules and regulations (WTO document G/SCM/N/123/TUR of 12 January 2006). 
101 Turk Eximbank reformed its short-term credit programmes in early 1996 to bring them into 
conformity with the WTO Agreement on Subsidies and Countervailing Measures. 
102 Pre-shipment financing is required by an exporter especially to meet workin g capital needs, whereas 
post-shipment financing is needed by exporters to offer sales on deferred  payment conditions due to competition 
in international markets. 
103 If the credits are allocated through commercial ba nks, the banks are responsible for the default risk 
of the borrowers.  If they are allocated directly by Turk Eximbank to the customer, then collateral and/or a bank 
guarantee is required. Commercial banks are allowed to charge a spread of up to 1% per annum for credits 
denominated in YTL, and 0.5% per annum for credits in foreign currency. WT/TPR/S/192 Trade Policy Review 
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98. Under the UFT, the Export Promotion Centre (IGEME) remains the main public organization 
for export promotion.  IGEME acts as an interm ediary in establishing business contacts between 
foreign importers and Turkish expor ters.  Its activities can be grouped into five main categories:  
research and development training (training programmes, seminars, and workshops); trade 
information (computerized trade information sy stem, and library); publicity and promotion 
(organizing national participation in  international trade fairs, and other promotional activities through 
publications and internet); project ma nagement; and international relations.  In parallel to IGEME's 
activities, the UFT has carried out trade missions and buyers programmes since 1995. The market and 
sectoral coverage of the programmes are based on Turkey's production and export-related capacity, 
potential markets, and trade possibilities.   
Table III.16  
Key features of the export insurance programmes, 2007 
Programme Coverage 
Short-Term Export Credit Insurance Up to 90% of losses incurred as a result of commercial and political risks on 
shipments made by an exporter within one  year, with payments deferred up to 
360 days.  Comprehensive cover is availa ble, including pre-shipment period (180 
days maximum); post-shipment cover is compulsory where applicable.  Premium 
rates vary according to, inter alia , the risk category of the buyer's country, the 
legal status of the buyer, and the re levant payment term and maturity. 
Specific Export Credit Insurance Comprehensive pre- a nd post-shipment insurance against commercial and 
political risks for the export of capital and/or semi-capital having at least 60% 
Turkish content and sold on credit terms up to five years.  Cover is available up to 
95% of 85% of the contract value, with the foreign buyers required to make a cash payment equal to at least 15% of the contract value.  Premium rates are 
specifically calculated taking into acc ount the above-mentioned criteria.  
Specific Export Credit In surance Post-shipment 
Political Risk  Cover against political risks in the post-shi pment period for receivables from sales 
on credit terms relating to the export of  capital and semi-capital goods with at 
least 60% domestic content. Cover is up to  95% of 85% (in principle 90% or less) 
of the contract value, with 15% of the contract value to be paid in advance. Premium rates are specifically calculate d taking into account the above-mentioned 
criteria. 
Specific Export Credit Insurance Comprehensive 
Post-Shipment Risk Policy Same as Specific Export Credit Insuran ce Post-shipment Political Risk, except 
that political and commercial risks are both covered.  
Insurance Programme for Unfair Calling of Bonds Cover applies to bid bonds, advance payment and performance bond for Turkish 
contractors in order to eliminate the risk of unfair calling of bonds.  Bonds are issued by a bank in favour of the public  buyer based in the borrowing countries 
for projects undertaken by Turkish contr actors or subcontractors. Turk Eximbank 
is responsible for identifying the Turkish contractor, where a call is made under the bond by reason of events or circumstances beyond the contractor's control. 
Source : WTO Secretariat, based on informati on provided by the Turkish authorities.  
99. The public agency for the development of SMEs (KOSGEB), established in 1990 as a non-
profit organization affiliated to the MIT, is fina nced under the general budget and has several support 
schemes for improving Turkish SMEs' competitiveness and promoting their exports. KOSGEB assists SMEs in, inter alia , participation in domestic and interna tional fairs, as well as in business trips 
abroad to promote exports (50% of the expenses ar e covered, up to YTL 10,000); creating their own 
brands; and in export promotion credits. KOSGE B also provides SMEs with business matching 
models, a mechanism through which local and fo reign SMEs are brought together in a common 
database, and business matching opportunities ar e assessed by a qualified operator company.   
100. As part of its obligations under the CUD, Turk ey has been harmonizing its legislation with 
that of the EC with respect to officially supported export credits (Article 12 of the CUD). Within this 
framework, the OECD Consensus principles on offici ally supported export cr edits with a repayment 
term of two or more years have been adopted.  Turk Eximbank is a full member of the Berne Union 
(the international association of export credit insure rs), and represents Turkey in the Group on Export Turkey WT/TPR/S/192 
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Credits and Credit Guarantees (ECG) and in the Participants Group (PG) of the OECD Trade 
Committee.104  
(v) Free zones 
101. The General Directorate of Free Zones, under the U FT, is in charge of Turkey's 20 free zones. 
The enterprises established in the zones are active in  a wide range of areas, including high-technology 
investments, leather products, and storage facilities.   
102. Since Turkey's last TPR, it has introduced new arrangements for tax incentives in free zones 
through the enactment of Law No. 5084 of 29 Janua ry 2004 on the Encouragement of Investments 
and Employment, and amendment of certain acts.105 Under Law No. 5084, only free zone users that 
operate under a production licence are exempted from th e income or corporate taxes until the end of 
the taxation period of the year in which Turkey b ecomes a full member of the EC. For other free zone 
users that obtained an operating licence before 6 February 2004, the income or corporate tax 
exemption will apply for the validity period of th e operating licence, and income tax on wages will 
not be paid until 2009. Free zone users that obt ained an operating licence other than for production 
after 6 February 2004, do not enjoy income or corporate tax exemption.   
103. Free Zones Law No. 3218 of 15 June 1985, and the Free Zones Regulation of 1993 complete 
the framework for operations and practices in the zones. The legislation is designed, inter alia , to 
promote foreign direct investment and joint-vent ures in export-oriented enterprises, provide easy 
access to imports of raw materials and equipment on favourable terms, and increase employment.  
Free zones are also targeted at regional developmen t.  The validity period of an operating licence is a 
maximum of ten years for tenant users, and 20 year s for users who wish to build their own offices in 
the zone; if the operating licence is for production, th e terms are 15 and 30 years for tenant users and 
investors, respectively. Sales into the domestic mark et and barter trade are allowed without limitation, 
subject to the foreign trade regime (including duty payment and a fee of 0.5% of the transaction value 
to finance infrastructure).106  
104. Financial incentives are available to free zone  companies.  These include exemption from 
payment of customs duties and fees; exemption from corporate, income, and value-added taxes; no 
restrictions on profit transfer; and for exchange transactions. The foundation and operation of the free 
zones are generally currency convertibility through government and private partnership (often with 
"build, operate, transfer" schemes, such as in the Aegean, Kocaeli, Adana-Yumurtalik, Samsun Free 
Zones). Investors are also free to construct thei r own premises, while zones have office space, 
workshops, or warehouses available for rental on a ttractive terms.  Goods may be stored, assembled, 
repaired, tested, or repackaged for purchasing or sale in the free zones.  
105. Under Article 10 of the Free Zones Regulati on, all industrial, commercial and service 
operations deemed appropriate by the Supreme Planning Board (SPB) may be conducted in free 
zones; off-shore banking, insurance business, and cust oms brokers are not allowed. Under Article 32 
of the Regulation, the entry of fire arms and thei r ammunition, radioactive substances, dangerous and 
toxic wastes to the zones is prohibited.  Infl ammables, explosives, combustibles, fire-inducing 
substances or materials dangerous to other substa nces, can only be brought into the zones provided 
there is a special arrangement or construction for th at purpose. The movement of narcotic substances, 
                                                      
104 Turkey has been a member of ECG since April 1 998, and an observer of PG since November 2006. 
105 Law No. 5084 was published in the Official Gazette  on 6 February 2004. 
106 The 0.5% fee, on goods brought to the zone from abroad and/or sold from the zone to Turkey, is not 
paid by users that obtained operating licences after 6 Fe bruary 2004. Sales into the domestic market are subject 
to Turkey's MFN imports regime. WT/TPR/S/192 Trade Policy Review 
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psychotropic substances and the related chemical subs tances, and their preparations in and out of the 
zone are subject to national and international la ws implemented by the  Ministry of Health.  The 
resident companies supplying inputs and/or services to free zone companies are not eligible for the 
same incentives.  
106. There is no limitation on foreign capital participa tion in investment within the free zones, and 
100% repatriation of capital is allowed without prio r permission, tax, duty, or fee. Despite this, 
Turkey's free zones consist mainly of domestic co mpanies: of the 3,876 firms in the free zones, 648 
(16.7%) are foreign. According to the authorities, after the recent legislative amendments to the free 
zones regime, many foreigners can celled their investment decisions.  Total free zones trade increased 
from US$11.1 billion in 2002 to US$23.8 billion in 2006 (Table III.17 );  almost 40% of this trade is 
with OECD and EC countries.  
Table III.17 
Trade in free zones, 2002-06 
(US$ million) 
 2002 (%) 2003 (%) 2004 (%) 2005 (%) 2006 (%) 
Free zones to domestic market 3,729 34 5,406 33 7,465 34 7,888 34 7,939 33 
Domestic market to free zones 1,528 14 2,119 13 2,882 13 3,160 14 3,071 13 
Other countries to free zones 3,589 32 5,638 34 7,520 34 7,704 32 7,951 34 
Free zones to other countries 2,257 20 3,445 21 4,243 19 4,610 20 4,863 20 
Total 11,103 100 16,608 100 22,110 100 23,363 100 23,824 100 
Source:  Information provided by the Turkish authorities. 
(vi) Other measures 
107. According to the authorities, Turkey does not participate in any arrangements designed to 
curb or control exports to third countries at the request of foreign governments/companies.   
108. According to Decree No. 32 on the Protection of the Value of the Turkish Currency, export 
earnings must be transferred to Turkey, through the banking system, within 180 days of the date of 
exportation.   
109. Export cartels are covered, but are not exempt  from a general prohibition of cartels, by Law 
No. 4054 on the Protection of Competition (section (4)(iii)).   
(4) M EASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives 
110. Few changes have been introduced to the Turkis h investment incentive regime since its last 
TPR.107 The Investment Encouragement Programme (I EP) which merged the General Investment 
Encouragement Programme (GIEP), and the Aids Gr anted to SMEs Investments, is now the only 
programme.108 The purpose of IEP is to encourage and orie nt investments, in order to reduce regional 
                                                      
107 Several incentive schemes run in parallel to the overall investment aid programme. These include 
assistance to exporters (such as duty concessions, expo rt finance, insurance, guarantee, promotion, and 
marketing assistance) (section (3)(v)), to the agriculture sector (including input subsidy payments), to the energy 
subsector (e.g. subsidies for the production of hard coal),  to maritime activities (tax incentives), and to tourism 
(including corporate income tax exemption).  
108 Decree No. 2006/10921 of 28 August 2006, published in Official Gazette  No. 26311, 
6 October 2006. Turkey WT/TPR/S/192 
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imbalances within the country, and create new employment opportunities, while using technologies 
with greater value-added. To qualify for the IEP, potential investors must apply for an investment 
encouragement certificate. In addition, under La w No. 5084 on Encouragement of Investments and 
Employment, Turkey provides support ranging from 20-50%  of energy costs to companies established 
in provinces with per capita GDP of US$1,500 or l ess (as of 2001), and provinces that have a negative 
socio-economic development index.109  
111. In order to obtain an investment encouragemen t certificate under the IEP, an investor should 
present,  inter alia , a receipt for the deposit of YTL 400 in the Central Bank.  Incentives under the IEP 
are: (i) exemption from customs duties and fund levies on imported machinery and equipment that are 
part of the investment project and appear on the Machinery and Equipment List approved by the 
Undersecretariat of Treasury;  (ii) VAT exemption for imported and locally purchased machinery and 
equipment;  (iii) "interest support", by certain percentage points of the interest rate, on credits obtained 
on commercial terms by investors to finance their investment projects110; and (iv) electricity cost 
support for tourism investments and establishments.  SMEs investments can also benefit from the 
encouragement measures offered under the IEP.111 
112. Under Ministerial Council Resolution on Stat e Aids Related to Exports (No. 6401 of 
27 December 1994), Turkey has nine state aid programmes, some of which are only for SMEs. 
Various public bodies/institutions and organiza tions in Turkey carry out these programmes 
(Table III.18).  
113. Turkey also offers five additional suppor t programmes.  On the basis of regional 
development, organized industrial zones (OIZ s) are offered subsidized industrial plots112; 
infrastructure, including transportation and communica tion facilities; and subsidized credits.  Since its 
establishment in 1962, about 93 OIZs have been cr eated;  credit granted during 2003-06 amounted to 
US$175.9 million.   
114. The small-scale industrial estates scheme, whic h dates back to 1965, provided credit of 
US$103.9 million between 2003 and 2006, towards th e construction of modern workshops with 
sanitary conditions. At the end of 2006, 403 estates a nd 88,025 workshops had been constructed; the 
main activities are car repair works, metal manuf acturing, and wooden industry. On the basis of 
regional development, these estates are granted, inter alia , infrastructure facilities and subsidized 
credits.113  
                                                      
109 See WTO document G/SCM/N/123/TUR of 12 January 2006. 
110 To benefit from "interest support", investments should be in priority development regions or by 
SMEs, or in the fields of R&D or environmental protection. The rate of compensation is 5 percentage points for 
YTL credits, and 2 percentage points for foreign cu rrency credits. Maximum total interest support for 
investment credits is : YTL 300,000 for R&D and environmental protection investments, YTL 200,000 for 
investments by SMEs, and YTL 1 million for investment s made in priority development regions. To enhance 
investments in R&D, credits for purchases of operating supplies are also eligible for interest support (to a maximum of is YTL 100,000). 
111 SMEs are defined as enterprises with less than 250 employees, and with net annual sales or annual 
financial statements not exceed ing YTL 25 million (Decree No. 2005/9617, 19 November 2005). 
112 The Law on Organized Industrial Zones (No. 4562 published in the Official Gazette  of 
15 April 2000) determines the principles for the establis hment, structure, and admini stration of OIZs. The size 
of industrial plots varies between 4,000 and 70,000 square metres. They are sold to industrialists at the cost of 
the land and infrastructure, without profit. An advance payment of 10%-25% of the cost of the plot must be 
made, and the rest is paid between four and ten years. The MIT pays up to 99% of the infrastructure cost, depending on the development level of the region. The credit interest rate ranges from 10% to 20%, and 
maturity is between nine and 15 years depending on the degree of development of the area. 
113 The interest rate for the credit ranges from 10% to  20%, and the maturity is 11 years with a one year 
grace period. WT/TPR/S/192 Trade Policy Review 
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Table III.18 
Key features of the state aid programmes, 2007 
Programme Aim and beneficiaries Support Implementing institutions 
State aid for research and 
development projects To support companies 
conducting R&D projects, regardless of size; all industrial 
companies and firms that 
produce software (1) 50% grant for R&D activities 
for three years; or (2) soft loan for capital support 
(to be paid back in US$ with 
Libor plus interest) for two years The Turkish Scientific and 
Technical Research Council, Technology Monitoring and 
Evaluation Board, and the 
Turkish Technology Development Foundation 
State aid for environmental protection activities To support expenses of SMEs 
during certification of quality 
assurance, environmental 
management systems, and CE marking; all SMEs 
manufacturing and software 
companies 50% of the relevant certification 
expenses Exporters' Unions 
State aid for participation 
in international fairs and 
exhibitions To increase participation in fairs 
abroad and promote Turkish 
exports; companies, sectoral foreign trade companies, 
producers/manufacturers 
organizations (1) 50% of participation fees (in 
the case of national 
participation);  (2) 50% of the rental cost of 
empty stand, and 50% of 
transportation costs (in the case of individual participation) Exporters' Unions 
State aid for organizing 
domestic fairs with international participation
a To promote international fairs 
organized in Turkey and to foster international participation; companies that organize 
international fairs in Turkey 50% of promotional activities; 
50% of transportation expenses of representatives of foreign companies; and  
50% of expenses regarding 
activities during the fair Exporters' Unions 
State aid for market 
research projects To create new export markets; 
companies, sectoral foreign trade 
companies, producers/manufacturers 
organizations Buying market research projects, 
reports, and statistics; financial 
assistance for companies participating in trade missions 
abroad, and for becoming 
members of B2B web sites so as to market their products abroad Export Promotion Centre and 
Exporters' Unions 
State aid for operating 
stores abroad To promote companies operating 
stores abroad; companies and sectoral foreign trade companies 50% of the advertisement, rent, 
office inventory and decoration expenditures of companies 
operating a store abroad Exporters' Unions 
State aid for encouraging 
employment in sectoral 
foreign trade companies To promote employment; 
sectoral foreign trade companies 75% of the pre-tax salary for one 
manager and two staff with 
professional experience, for one 
year Undersecretariat for Foreign 
Trade  
State aid for vocational 
training To support trade training and 
trade consultancy needs of 
companies in international trade business  (1) Subjects are: quality, 
productivity, management 
techniques, design, international marketing, and foreign trade 
operations 
(2) 90% of training costs for programmes up to six months (3) 75% of consultancy services 
costs up to one year 
(4) One year tuition costs of selected designers Export Promotion Centre  and 
Exporters Union 
State aid for  promoting 
Turkish trade marks and  improving the image of 
Turkish goods  To support brand creation and 
positioning activities, as well as marketing activities abroad; 
companies and sectoral foreign 
trade companies 50% of consultancy fees, rental 
fees, advertisement, certification expenses and fees for the 
registration of trade marks Exporters' Unions and 
Undersecretariat for Foreign Trade 
a The fair must be organized at least three years in advance,  a minimum of 100 companies is required (25 of which must be 
 foreign), and a fair cannot be  supported more than twice. 
Source:  Information provided by the Turkish authorities.  
115. With the objective of upgrading SME's effectiveness and expanding their share of total 
production, the KOSGEB provides services related to production, marketing, quality control, 
machinery and equipment support, technology deve lopment, training, and information; it also Turkey WT/TPR/S/192 
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prepares and executes projects.  The KOSGEB has several support schemes for the improvement of 
Turkish SMEs exports (section (3)(iv)).   
116. The Technology Development Zones Law (N o. 4691), approved by the Grand National 
Assembly of Turkey on 26 June 2001, promotes the use of high/advanced technologies and the 
development/production of technology or software in technology development zones, and related 
R&D capabilities, through cooperation between unive rsities, research institutions, and producers. 
Financial support is granted for, inter alia , land procurement, infrastru cture, and construction of 
administrative buildings.  Income and corporation tax exemptions are being granted until the end of 
2013. Researchers, software engineers, and R&D pe rsonnel working in the zone are exempt from all 
types of tax, also until the end of 2013.   
117. The Industrial Zones Law (No. 4737, published in the Official Gazette  of 19 January 2002), 
which amended the Law on Industr ial and Organized Industrial Zones, aimed to promote domestic 
and foreign investment by offering incentives and rem oving red tape for invest ors.  Industrial zones 
(IZs) are established by the Council of Ministers, upon proposals from the MIT, at locations designated by the Coordination Committee for Indus trial Zones. The acquisition of land and the 
preparation of the infrastructure required for the construction of IZs are funded by the MIT. The 
Council of Ministers determines, within the frame work of the investment incentives decrees, the 
incentives that will be applied to investments in IZs.   
(ii) State trading, state-owned enterprises and privatization 
118. Since Turkey's previous TPR, the public sector  has decreased its influence on the economy, 
mainly through the privatization of state-owned enterprises (SOEs).
114 Some of the most important 
SOEs in operation (Table III.19) still operate under monopoly or hold exclusive rights in many sectors 
(e.g., banking, transportation, agricultural processing , and energy), and run losses, with consequent 
budgetary transfers. As a result, Turkey is implem enting an ambitious privatization programme aimed 
at relieving the financial burden of SOEs on the national budget, addressing over-employment, 
ensuring a sustainable growth path, and a market-based and competitive production system, while 
meeting the EC's pre-accession economic criteria.   
119. The privatization programme in Turkey, which started in 1984, involves not only the sale of 
the companies but also their ex ante  restructuring in accordance with Privatization Law No. 4046 of 
November 1994, as amended by Law No. 4971 of 2003.  The two main institutions in charge are the 
Privatization High Council (chaired by the Prime Ministry), which decides on the list of companies to 
be included in (or excluded from) the privatization portfolio, and the Privatization Administration 
(PA), which carries out the programme. However, pr ivatization of some specific PEs is undertaken 
jointly with the relevant ministries and public authorities, for example the Banking Regulation and 
Supervision Agency in the case of state banks , and the independent Tender Committee in the 
privatization of Turk Telekom.  In addition, certain privatizations  are monitored by the Competition 
Authority.115  
                                                      
114 SOEs in Turkey comprise both financial and non -financial companies. Non-financial SOEs are 
divided in two groups: state economic enterprises (SEEs) that operate in sectors where competition is possible, 
and public economic institutions (PEI), i.e. monopolis tic firms that have some special rights on operational 
issues in their areas of activities (e.g. railway, coasta l safety, air traffic contro l, and postal services). 
115 Under the Turkish competition law, broad merger co ntrol provisions (Article 7 of the Competition 
Law) are also applicable to privatization transactions conducted by the St ate.  To ensure timely review of such 
transactions, the Board issued a communiqué in September 1998 (Communiqué 1998/4) to specifically address WT/TPR/S/192 Trade Policy Review 
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Table III.19 
Selected public enterprises, 2007 
PE Activity State ownership Related law 
Manufacturing    
  MKEK Machinery and chemicals 100.00% Decree Law No. 233 
  DMO Office supplies 100.00% Decree Law No. 233 
  SUMER HALI Hand carpet 100.00% Decree Law No. 233 
  SUMER HOLDING Textiles 100.00% Law No. 4046 
  TDCI Iron ore 100.00% Law No. 4046 
Mining    
  ETI MADEN ISLETMELERI Mining industry 100.00% Decree Law No. 233 
  TTK Coal mining 100.00% Decree Law No. 233 
  TKI Lignite mining 100.00% Decree Law No. 233 
  KBI Copper 100.00% Law No. 4046 
Electricity    
  TEIAS Electricity transmission 100.00% Decree Law No. 233 
  EUAS Electricity generation 100.00% Decree Law No. 233 
  TETAS Electricity contracting & wholesale 100.00% Decree Law No. 233 
  TEDAS Electricity distribution & retail sale 100.00% Decree Law No. 4046 
  TEMSAN Electromechanic equipmen t Subsidiary Decree Law No. 233 
  YENIKÖY  ELEKTRIK ÜRETIM Electric ity generation 100.00% Decree Law No. 233 
  KEMERKÖY  ELEKTRIK ÜRETIM  Electricity generation 100.00% Decree Law No. 233 
  YATAĞAN  ELEKTRIK ÜRETIM  Electricity generation 100.00% Decree Law No. 233 
Petroleum    
  TPAO Crude oil exploration and production 99.98% Decree Law No. 233 
  BOTAS Crude oil transportation and natural 
gas import, transportation, 
distribution and sale 100.00% Decree Law No. 233 
  PETKIM Petrochemicals 65.50% Law No. 4046 
Agriculture    
  TSFAS Sugar processing 99.99% Decree Law No. 233 
  TMO Soil products 100.00% Decree Law No. 233 
  CAYKUR Tea processing 100.00% Decree Law No. 233 
  TEKEL Tobacco and alcoholic  beverages 100.00% Law No. 4046 
  EBK Meat, fish processing 100.00% Law No. 4046 
Transportation    
  TCDD Railway services 100.00% Decree Law No. 233 
  TUDEMSAS Railway transportation e quipment Subsidiary Decree Law No. 233 
  TULOMSAS Railway transportation e quipment Subsidiary Decree Law No. 233 
  TUVASAS Railway transportation equi pment Subsidiary Decree Law No. 233 
  DHMI Airports administration 100.00% Decree Law No. 233 
  KIYEM Coast security 100.00% Decree Law No. 233 
  TDI Seaports administration 100.00% Law No. 4046 
  THY Airlines 49.12% Law No. 4046 
    
Communication    
  PTT Post, telegraph 100.00% Decree Law No. 233 
  TURK TELEKOM Telecommunication 45.00% Laws Nos. 4046 and 4673 
  TURKSAT Satellite communication and cable 
TV 100.00% Law No. 5189 
Banking    
 TC ZIRAAT BANKASI Banking (agricultural s upport credits) 100.00% Laws Nos. 4603 and 5411 
 T. HALKBANKASI A.S. Banking  74.98% Laws Nos. 4603 and 5411 
   Table III.19 (cont'd) 
                                                                                                                                                                     
privatization proceedings administered by the PA.  This  was amended to cover all privatization transactions 
carried out by any public institution or organization. The Communiqué 1998/4 requires that pre-notification be 
made to the Turkish Competition Authority before tender  conditions are announced to the public if the entity 
being privatized:  (i) has a market share over 20%, or  (ii) has turnover exceeding YTL 20 million, or (iii) 
possesses a legal monopoly, or (iv) enjoys statutory or de facto  privileges not accorded to  private firms in the 
relevant market.  The pre-notification allows the Board to make its views known for the preparation of tenders.  When the successful bidders are determined following a tender, authorization by the Competition Board is 
required to make the privatization transaction legally e ffective: (i) where pre-notification of the transaction is 
compulsory or, (ii) even if pre-notification is not requir ed, where the acquiring firm has a pre-transaction market 
share above 25% or turnover  exceeding YTL 25 million. Turkey WT/TPR/S/192 
 Page 67 
 
 
PE Activity State ownership Related law 
  T.KALKINMA.BANKASI A.S. Banking (devel opment) 99.08% Laws Nos. 4456 and 5411 
  T. IHRACAT KREDI BANKASI A.S. 
(T. EXIMBANK) Banking (export credit) 100.00% Laws Nos. 3332 and 5411 
  T. VAKIFLAR BANKASI T.A.O. Banking 58.64% Laws Nos. 6219 and 5411 
Source:  Information provided by the Turkish authorities.  
120. Privatization is  through one or more of the follo wing methods: (i) sale; (ii) lease; (iii) grant of 
operational rights; (iv) establishment of property righ ts other than ownership; and (v) profit sharing 
model and other legal provisions depe nding on the nature of the business.116 In the case of 
privatization of public service organi zations through a transfer of ownership, separate laws (other than 
Law No. 4046) have to be used.117  Under Law No. 4046, value assessment commissions are 
established for privatizations;  these commissi ons must use at least two valuation methods118, as well 
as various criteria such as industrial, commercial, and social features, sector and market specifications, and technological structure.  If more than 49% of the capital shares of the following 
entities are privatized, golden shares must be establis hed due to their "strategic importance": Turkish 
Airlines (THY), Ziraat Bankasi, Halk Bankasi , Soil Product Office, and Turkish Petroleum 
Corporation (TPAO).
119  
121. State shares in 244 companies were brought into  the privatization portfolio during 1984-07. In 
addition, 22 "incomplete" plants, six toll motorways,  two Bosphorus bridges, six ports, 393 real estate 
properties, and 29 electricity plants have been included in the programme.120  In total, 195 companies 
have been privatized. The State has withdrawn fro m certain activities such as cement, animal feed, 
milk processing,  and airport ground handling services. More than  50% of the privatized shares were in 
tourism, iron and steel, textiles, sea freight, and meat processing. In a number of cases, state shares were offered to the public through the Istanbul Stoc k Exchange, which has thus been helped by the 
process.
121 
122. After more than a decade's delay, large-size pr ivatizations only began in 2004-05. Some of 
the most important PEs privatized  since then are: Turk Telekom (55% of the shares sold for €5.5 
billion)122, TUPRAS (51% for €3.5 billion), Erdemir (49.29% for €2.5 billion), Ataturk airport (15.5 
years of operating rights for €2.5 billion), Vakiflar Bankasi (25.18% for €1.1 billion), Eti Aluminium (99.99% for €255 million), Petkim (34.5% for € 234 million), and THY (28.75% for €173 million). 
                                                     
 
116 Article 18 of Law No. 4046 of 24 November 1994. 
117 These include companies with national and supplemental budgets and their properties, such as 
hospitals, ports, and highways; public economic enterprises offering public services under monopoly; and enterprises with national and supplemental budgets that are in the form of an exclusive monopoly and/or public 
economic enterprises that serve within the framework of their original establishment tasks. 
118 The methods are: net present va lue, book value, net asset value,  depreciated replacement value, 
liquidation value, price/cash flow ratio, price/profit ratio , market capitalization value, market/book value, and 
expertise value. 
119 WTO (2003). 
120 Some of the companies were subsequently removed from the portfolio for a range of reasons. 
Privatization Administration online information. Viewed  at: http://www.oib.gov.tr/yayinlar/publications.htm.  
121 Privatization Administration online information viewed at: 
http://www.oib.gov.tr/yayinlar/publications.htm.  
122 Turk Telecom (the remaining 45% of the shares) is one of the main companies that remains in the 
privatization portfolio. WT/TPR/S/192 Trade Policy Review 
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Privatization proceeds, on a commitment basis, to talled around €10.4 billion in 2005 and €6.7 billion 
in 2006 (compared with actual revenues of about €10 billion during 1986-02).123  
123. In October 2002, the state-owned electricity  company TEAS was separated into three 
companies (generation, wholesale, and transmissi on activities), while the privatization process of 
retail activities owned by TEDAS and three of its twenty electricity distribution companies was 
initiated (Chapter IV(3)(iii)(b)).124 Turkey has also launched tendering processes for the ports of 
Bandirma, Derince, İzmir, Samsun, Mersin and İskenderun;  the technical processes for Mersin and 
Iskenderun have already been completed. Among the most important PEs listed for privatization are: 
TEKEL125; Petkim (tendering for the sale of 51% of the shares was announced on 16 March 2007); 
the National Lottery; sugar processing plants; certain public utilities companies; some banks (the 
privatization of Halk Bankasi has been approved, a nd Ziraat Bankasi will follow); as well as other 
smaller holdings, such as Tasucu Paper and Pulp  Plant, hotels, and land/real estate holdings.   
124. Four pharmaceutical products (at the HS four-dig it level), i.e. cinchona bark (used to fight 
malaria and syphilis); potassium iodide; alkaloids of  cinchona and their derivatives (quinidine)); and 
primaquine diphosphate con tinue to be imported only by the Turkish Red Crescent, which is one of 
the two state trading enterprises still operating in the country;  the other is TEKEL126  
(iii) Competition policy and price controls  
125. The Law on the Protection of Competition No. 4054 ( Official Gazette,  13 December 1994) 
remains the main legal basis covering competition in  both goods and services; its main objective is to 
create an efficient competi tive environment in Turkey.127 In 2005, amendments to Law No. 4054, 
through Law No. 5388128, inter alia,  abolished the compulsory notification of agreements, and 
concerted practices or decisions that are within the scope of Article 4 of Law No. 4054 in order to 
receive exemption129; abolished fines applicable for failure  to notify these agreements, concerted 
practices and decisions; and clarified that fines w ill be applicable in cases of mergers or acquisition 
transactions that are subject to authorization and are undertaken without the authorization of the Competition Board. The number of Board me mbers was reduced fro m eleven to seven.
130 Turkey has 
also continued to adopt secondary legislation with a view to further aligning its legislation on the EC 
acquis . 
126. Turkey's competition legislation addresses three main categories of issues: (i) agreements, 
decisions, and concerted practices that hinder, di stort or restrict competition (Article 4, Law 
                                                      
123 During 2005-06, the Privatization Administration transferred €5.56 billion to the Treasury with the 
aim of reducing the public debt stock. 
124 As part of the privatization process, on 1 March 2005, distribution segments in 21 regions and 
20 electricity distribution companies began operations. 
125 The part of TEKEL dealing with  alcoholic beverages was sold in  2004, while TEKEL tobacco is 
scheduled to be privatized soon. 
126 WTO document G/STR/N/11/TUR, 15 December 2006. 
127 The substantial provisions of Turkey's competition law are described in detail in WTO (1998). 
128 Law No. 5388, entitled "The Law on an Amendment to Particular Articles of the Law on the 
Protection of Competition." 
129 This amendment enabled the Competition Authority  to grant exemptions to  agreements, concerted 
practices and decisions for a speci fied or an unspecified period ex officio  provided that all the conditions under 
Article 5 of Law No. 4054 are satisfied. Moreover, th e exemption decisions now have retroactive effect: 
"exemption decisions will be valid as of the date of co ncluding an agreement or committing a concerted practice 
or taking a decision of an association of undertakings". 
130 Board members are also now proh ibited from participation in inve stigations of potential breach of 
competition rules. Turkey WT/TPR/S/192 
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No. 4054);  (ii) abuse of dominant position (Article 6) ;  and (iii) mergers and acquisitions that distort 
the competitive structure of the market (Article 7). Pu rsuant to Article 4, all agreements that distort, 
restrict or prevent competition are prohibited, except where an exemption is granted by the Competition Board (Article 5).
131 It may grant negative clearance (Ar ticle 8), which confirms that the 
practice is not considered to be contrary to the co mpetition rules. Any practice that affects the Turkish 
market falls within the scope of the law), in cluding agreements between Turkish and foreign 
companies or even between foreign companies, ev en when the agreements are concluded outside 
Turkey (the effects doctrine). Except for certain t ypes of merger in banking, all sectors are treated 
equally under Law No. 4054. 
127. Since November 1997, the Competition Author ity (CA) has been responsible for the 
implementation and the enforcement of the law.132 The decision-making body of the CA is a seven-
member Board; its budget is financed from a 0.04%  levy on capital increases of companies. It may 
request information that it deems necessary fr om all public institutions and organizations, 
undertakings and associations of undertakings (Ar ticle  14), perform on-the-spot inspections at 
undertakings and associations of undertakings (Artic le 15), carry out investigations (Articles 40 to 
49), and impose penalties (Articles 16-17). Artic le 5 also empowers the Competition Board to  issue 
communiqués that ensure block exemptions  for agreements on specific -matters. 
128. The CA has played an important role in moving the Turkish economy forward to greater 
reliance on competition-based and consumer-w elfare oriented market mechanisms.133 Moreover, since 
the last TPR of Turkey, the CA has sought to improve coordination with Turkey's regulatory 
institutions, for example the Telecommunications Authority, and the Energy Market Regulatory 
Authority (EMRA) (Table III.20). The CA has also wo rked closely with the PA on the privatization of 
a number of SOEs.134 Some of the most serious problems for competition law and policy in Turkey 
are, inter alia , the lack of a mechanism to control state ai ds, and the fact that some SOEs are vested 
with monopoly concessions or anti-competitive privileges.135  
129. From 2000 to 2006, 1,633 cases were handled  by the CA and 99% were resolved 
(Table III.21). Mergers and acquisitions repr esented 54.1% of cases resolved, followed by 
competition infringements (29.9%), and exemptions and negative clearance (16%). 
130. Certain products, such as energy, and services, mainly utilities, are subject to price controls. 
Tariffs for electricity transmission, distributio n, and wholesale (for TETAS, state-owned wholesale 
company), and for retail to "non-eligible consumer s" are subject to EMRA Board approval.  The 
pricing methods under the EMRA regulation (with pr ice subject to approval by EMRA Board) are 
"revenue cap" for transmission tariff, "hybrid" for distribution tariff, and "cost based" for TETAS 
tariffs; the "price cap" method is used for the retail sa le tariff applicable to non-eligible consumers.  
For natural gas, wholesale, retail sale, transmission, st orage, and city distribution tariffs are subject to 
approval by EMRA Board; a price cap is determin ed in accordance with principles and procedures set 
by EMRA.  Petroleum and LPG prices are determined freely according to world prices; however, in 
                                                      
131 Exemptions will be granted by the Board, if the agreements: promote or enhance technical and 
economic production of certain goods or services; bene fit the consumer; do not eliminate competition in a 
significant section of the market; and do not restrict co mpetition beyond what is required to achieve the first two 
objectives. Competition Authority online information. Vi ewed at: http://www.rekabet .gov.tr/word/ekanun.doc. 
132 The CA was constituted by a Decree of  Council of Ministers published in Official Gazette  
No. 22918 of 27 February 1997. The structure of the CA was announced by Communiqué No. 1997/5. 
133 OECD (2005b). 
134 Privatization Administration online information viewed at: 
http://www.oib.gov.tr/yayinlar/pub lications.htm [20 June 2007]. 
135 OECD (2005b). WT/TPR/S/192 Trade Policy Review 
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case of competition abuse, EMRA is authorized to control the price for two months. Coal prices are 
set by the producers (Chapter IV(3(iii)(b)). The opening price for the auction of locally produced 
tobacco for sale is determined by TAPDK.   Turkey also maintains price controls on certain 
pharmaceutical products (section (ii) above), a nd telecommunication services (Chapter IV(5)(iii)).   
Table III.20 
Independent regulatory institutions, 2007 
Institution Law  No./Year Sectors Task 
Capital Market Board 2499/1981 Capital markets Regulati ng and supervising the capital markets and protecting 
the rights and interests of investors 
Radio and Television Supreme Council 3984/1994 Radio and television 
broadcasting Regulating radio and te levision broadcasting 
Competition Authority 4054/1994 Goods and services 
markets (all sectors) Prohibiting agreements, decision and concerted practices that 
restrict competition, and any abuse of dominant position by one or more undertakings;  controlling mergers and 
acquisitions; establishing a competition culture as part of its 
competition advocacy role  
Banking Regulation and 
Supervision Agency 4389/1999 Banking Protecting the rights and interests of depositors;  laying down 
principles regarding the establishment, management, 
operation, acquisition, merger, li quidation, and supervision of 
banks in order to ensure efficient operation of the credit 
system with due regard to the requisites of economic 
development, and confidence a nd stability in the financial 
market 
Telecommunications Authority 4502/2000 Telecommunications Constituting a dy namic and strong market based on fair 
competition;  contributing to the sectoral policy-making process;  taking measures to pr otect consumer rights;  ensuring 
efficient and productive use of scarce resources in the sector, 
such as frequency and numbers 
Electronic Signature Law 5070/2004 Information 
Technology Defining the principles for the legal and technical aspects and 
application of electronic signatures 
Energy Market Regulatory Authority 4628/2001 
4646/2001 
5015/2003 
5307/2005 Electric energy 
Natural gas 
Petroleum 
Liquefied Petroleum Gas (LPG) Constituting a financially strong, stable and transparent energy 
market operating under private law in a competitive 
environment to provide adequate, refined, continuous and 
environment-friendly electricity and natural gas;  ensuring independent regulation and supervision in the market 
Regulate the guidance, surveilla nce and supervision activities 
in the delivery of petroleu m and LPG, to ensure the 
transparent, non-discriminatory, and stable supply from 
domestic and foreign resources to consumers, directly or after 
processing in a cost-effective manner 
Sugar Authority 4634/2001 Sugar, starch-based 
sweeteners Regulating the sugar regime through establishment of 
procedures and principles rega rding sugar production, and the 
conditions and methods of marketing 
Tobacco, Tobacco 
Products and Alcoholic 
Beverages Market 
Regulation Authority 4733/2002 Tobacco, tobacco 
products, and 
alcoholic beverages Regulating the procedures and principles regarding 
production, domestic and external purchase and sale of 
tobacco and tobacco products 
Public Procurement Authority 4734/2002 All public 
institutions Determining the procedures and principles to be applied in 
public procurements;  examining the complaints concerning 
all public procurements 
Source:  Information provided by the Turkish authorities.  Turkey WT/TPR/S/192 
 Page 71 
 
 
Table III.21 
Cases handled by the Competition Authority, 2000-06 
 2000 2001 2002 2003 2004 2005 2006 Total 
Competition infringements         
  Investigations 43 44 55 70 78 84 108 482 
  Cases resolved 40 40 53 54 91 97 108 483 
Mergers/acquisitions         
 Investigations 102 81 110 113 118 164 199 887 
 Cases resolved 100 86 103 106 122 170 186 873 
Negative clearance/exemption         
 Investigations 27 21 29 44 62 45 36 264 
 Cases resolved 11 27 26 36 76 50 33 259 
Total         
 Investigations 172 146 194 227 258 293 343 1,633 
 Cases resolved 151 153 182 196 289 317 327 1,615 
Source:  Information provided by the Turkish authorities.  
(iv) Protection of intellectual property rights 
(a) Overview 
131. As part of its harmonization efforts towards EC  legislation on intellectual property rights 
(IPRs), and in accordance with its commitments  under the WTO TRIPS Agreement, Turkey has 
introduced some changes to its intellectual property regime since its last TPR.  Some of the main 
changes include: (i)  enactment of Law No. 5101, which entered into force on 13 March 2004, and 
amended various laws on IPRs, including La w No. 5846 on intellectual and artistic works136; (ii) 
amendment of Decree Law No. 551 on the Protection of Patent Rights to, inter alia , increase the 
penalties for infringement (section (g) below); (iii) en actment of data protecti on legislation, in 2006, 
in response to concerns from pharmaceutical compan ies to provide data exclusivity for confidential 
test data; and (iv) establishment of 13 more courts (currently there are 21) specialized in intellectual 
property matters in Istanbul, Izmir, and Ankara, wh ere infringement cases are larger than in other 
Turkish cities.  Turkey is still on the U.S. Special 301 Prio rity Watch List, due to concerns about 
loopholes in the new data protection legislation,  and continued high levels of piracy and 
counterfeiting of copyright and trade mark materials.137 The Turkish intellectual property legislation 
was reviewed by the WTO TRIPS Council in November 2000.138  
132. Intellectual property rights legislation in Tu rkey is composed mainly of: Patent Rights 
Protection Decree (No. 551); Industrial Design Decree (No. 554); Geographical Indications Decree 
(No. 555); Trade Mark Protection Decree (No. 556) ; Law on Intellectual and Artistic Works (No. 
5846), amended by Laws Nos. 4630 and 5101; La w on Evaluation, Classification and Support of 
Films (No. 5224, in force since July 2004); Amending Law of Patent, Design, Geographical 
Indications and Trade Mark Decree (No. 4128); La w for the Establishment and Functions of the 
Turkish Patent Institute (TPI) (Law No. 5000, in  force since November 2003); Law on the Protection 
of Plant Breeder's Rights for New Plant Varieties (Law No 5042, in force since January 2004); Law 
                                                      
136 The main goal of Law No. 5101 is to harmonize the domestic regime with international legislation 
against piracy activities. 
137 USTR (2006). 
138 WTO document IP/Q-Q4/TUR/1 of 12 April 2001 contains the introductory statement made by 
Turkey, as well as the questions posed and answers given during the review. WT/TPR/S/192 Trade Policy Review 
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on the Protection of Integrated Circuit Topographies (No. 5147, in force since April 2004); Seed Law 
(No. 5553, in force since October 2006); and La w Amending the Decree-Laws on the Protection of 
Patent, Industrial Designs, Geographical I ndications and Trade Mark (No. 5194).139  
133. The main institutions responsible for intellect ual property matters are: the Turkish Patent 
Institute (TPI), for patents, trade marks, geogra phical indications, designs, and chip topographies; the 
Directorate-General of Copyrights and Cinema in th e Ministry of Culture and Tourism for copyright 
and related rights; the Directorate-General of Customs in the Undersecretariat of Customs for border measures; the Ministry of Agriculture for plant br eeders' rights; and the Ministry of Justice for 
enforcement before the courts.
140  
134. Turkey has joined various IPR conventions a nd treaties since its last TPR (Table III.22).   
Table III.22 
Membership in internat ional agreements, conventions, and treaties, 2007 
Name Date of membership 
Paris Convention on the Protection of Industrial Property (1883) 10 October 1925 
Berne Convention for the Protection of Litera ry and Artistic Works (1886) 1 January 1952 
Convention establishing WIPO (1967) 12 May 1976 
Rome Convention for the Protection of Performers, Producers of Phonograms  and 
Broadcasting Organizations (1961) 8 April 2004 
Nice Agreement concerning the International Cl assification of Goods and Services for the 
purpose of Registration of Marks (1957) 1 January 1996 
Patent Co-operation Treaty (1970) 1 January 1996 
Vienna Agreement Establishing an Internationa l Classification of the Figurative Elements 
of Marks (1973) 1 January 1996 
Strasbourg Agreement Concerning the Internati onal Patent Classifica tion (1971) 1 October 1996 
Budapest Treaty on the International Recogn ition of the Deposit of Micro-Organisms for 
the Purpose of Patent Procedure (1977) 30 November 1998 
Protocol relating to Madrid Agreement (1996) 1 January 1999 
Locarno Agreement Establishing an Internati onal Classification for Industrial Designs 
(1968) 30 November 1998 
European Patent Convention (1973) 1 November 2000 
Hague Agreement (International Depos it of Industrial Designs) 1 January 2005 
Trademark Law Treaty 1 January 2005 
Singapore Treaty on the Law of Trademarks 28 March 2006 
WIPO Copyright Treaty 8 May 2007 
WIPO Performances and Phonogram Treaty  8 May 2007 
Source : Information provided by the Turkish authorities.  
135. Parallel imports of goods and services containing any form of intellectual property rights are 
prohibited in Turkey.  Turkish legislation on copyri ght, trade marks, designs, and patents provides for 
national exhaustion of distribution rights, which enables the right holders to prevent parallel 
                                                      
139 The Seed Law aims to, inter alia , upgrade productivity in plant production, promote quality of 
seedlings, and develop and upgrade the seed subsector. It is based on EC legislation, and makes it compulsory to 
both register and certify seeds before they can be sold. Other laws and regulations that contain provisions on 
intellectual property law are: Contract Law (No. 818), Turkish Commercial Code (No. 6762), Regulation on Pharmaceutical Products, Civil Serv ants Law (No. 657), Customs Law (No. 4458), Civil Procedure Law 
(No. 1086), Criminal Procedure Law (No. 1412), a nd the Turkish Constitution (regarding provisions on 
judiciary). See WTO document IP/N /1/TUR/2 of 3 July 2000.  
140 See WTO (1998).  Turkey WT/TPR/S/192 
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importation of protected products put on the market in other countries.141  In 2000, the Competition 
Board of Turkey decided that parallel imports cannot be prohibited. This decision was later 
challenged and the case is before the Counc il of State, the body of last instance.   
(b) Patents 
136. Decree Law No. 551 on the Protection of Pate nt Rights, which entered into force on 
27 June 1995, is the main patent legislation.  It provides for the possibility of converting a patent 
application into a utility model, and vice-versa142;  the granting of patents by examination and non-
examination; patentability criteria (novelty, inve ntive activity/step, industrial applicability);  
publication of applications;  opposition by third pa rties; non-renewable protection for seven years for 
non-examined patents, ten years for utility model certificates, and 20 years for examined patents; 
employee inventions; penalties against infringement;  and the establishment of special courts.  An 
applicant not living in Turkey must appoint a local pa tent agent. Subject to this, foreigners are entitled 
to the same rights and privileges and are s ubject to the same obligations as nationals.   
137. Micro-organisms and microbiological processes are patentable in Turkey.  Pharmaceutical 
products and processes have had pa tent protection since 1 January 1999, in accordance with Turkey's 
commitments under both the TRIPS Agreement and the CUD.   
138. Provision is made for granting compulsory li cences on the grounds that a patent was not put 
into use or that the delay in the u se thereof was not due to justifiable/legitimate reasons or that the use 
has been suspended during an uninterrupted peri od of three years (Article 100 of Decree Law 
No. 551). Articles 39 and 40 of the Implementing Regula tion set out the provisions related to proof of 
use, which also includes the importation of patented products. 
(c) Trade marks 139. Decree Law No. 556 on the Protection of Trademarks, which entered into force on 
27 June 1995, includes a registered trade mark pr otection system for goods and services, guarantee 
marks, and collective marks.  Protection is for te n years from the date of application and can be 
renewed at the end of each consecutive ten-year peri od.  A licence may be exclusive or non-exclusive, 
but is non-exclusive unless otherwise stated in the c ontract.  Turkey does not require a trade mark to 
be registered in the home country or any other country. 
(d) Copyright 140. The main legislation on copyright is Law No. 5846 on Intellectual and Artistic Works, which 
entered into force on 5 December 1951; it was l ast amended by Law No. 5101 of 3 March 2004. 
Copyright protection is for the lifetime of an author plus 70 years.  The main  changes introduced by 
Law No. 5101 include: ministerial certification of f acilities that manufacture, record, reproduce, and 
sell materials for the fixation and reproduction of in tellectual and artistic works; a graduated penalty 
system, and extending the judicial discretion; granting  ex officio  authority to the police in fighting 
against piracy; and banning the sale of legally reproduced materials at open spaces like streets, 
squares, pavements. Law enforcement authorities ar e entitled to take action without a prior complaint 
by a right holder. Moreover, sanctions were modifi ed, and currently consist of three months to six 
                                                     
 
141 Article 6 of the TRIPS Agreement provides that, for the purposes of dispute settlement, nothing in 
the Agreement shall be used to addre ss the issue of exhaustion of intellectual property rights, provided that the 
national treatment and MFN treatment obligations are met.  
142 Utility models differ from inventions of patents in two respects:, less technological progress is 
required; and the maximum term of protection is generally much shorter. WT/TPR/S/192 Trade Policy Review 
Page 74 
 
 
years imprisonment or fines of YTL 5,000-250,000  or both considering the severity of the 
infringement.143 
(e) Industrial designs 141. Decree Law No. 554 on Industrial Designs, wh ich entered into force on 27 June 1995 
provides for the protection of designs that are new and distinctive. A design is considered new if, 
before the date of application, no identical design has been made available to the public anywhere in 
the world.  A registered design is protected for fi ve years from the filing date, and protection may be 
renewed for periods of five years, to a maximum of 25 years. Protection for unregistered designs is 
provided through the unfair competition provisions of the Turkish Commercial Code. 
(f) Other areas 
142. Turkey also provides protection for geographical indications through Decree Law No. 555 on 
the Protection of Geographical Signs, which entered into force on 27 June 1995. Protection is based 
on registration and covers all goods , in addition to wines and spirits. Protection for unregistered 
geographical indications is pr ovided through the unfair competition provisions of the Turkish 
Commercial Code. 
143. Turkey's new data protection legislation provi des data protection for pharmaceutical products 
in any EC member. The protection period cannot extend beyond the period granted for patents, and 
products registered after 1 January 2001 can be prot ected. Generic products can only be registered in 
exceptional cases, where public health  is affected, and generic appli cations filed after 1 January 2006 
are deemed to be valid. 
144. Under Law No. 5042, Turkey protects new varieties of plants for 25 years after registration, 
and trees, vines, and potatoes for 30 years. The legislation provides a grace period of one year in Turkey, four years abroad, and six years for trees and vines.
144 
145. The Turkish legislation on intellectual propert y rights does not provide for anti-competitive 
practices in contractual licences.  This subject is governed by the Protection of Competition Act (section (iii) above)). 
(g) Enforcement 
146. Infringements of patents (Part X of Decree La w No. 551, as amended), copyrights (Part V of 
Law No. 5846), trade marks (Part VIII of Decree La w No. 556), industrial designs (Part VI of Decree 
Law No. 554), geographical indications (Part IV of  Decree Law No. 555), new varieties of plants 
(Part 7 of Law No. 5042), and integrated circuit topographies (Part 7 of Law No. 5147), can be 
challenged in a domestic court.  Foreigners can also  challenge patent holders in Turkish courts. There 
are 21 specialized IPR courts (up from eight in 2003; nine are criminal and tw elve civil), in Istanbul, 
Izmir, and Ankara. In addition, general civil and ge neral criminal courts are competent to deal with 
IPR cases in cities where there are no specialized IPR courts. 
147. Persons making false statements during the process of granting an industrial property right, or 
those removing, without authority, the sign indica ting an industrial property right on a product, or 
falsely presenting themselves as the owner of an indus trial property right are subject to a maximum 
                                                     
 
143 In the event of recurrence, jail sentences can no  longer be postponed or converted into a fine. 
144 Law No 5042 was influe nced by the agreement reached be tween the International Union for 
Protection of New Varieties of Plants and WIPO, and, acco rding to the authorities, is based on EC legislation. Turkey WT/TPR/S/192 
 Page 75 
 
 
fine of YTL 27,000  and imprisonment for up to two years. In the case of patents, the maximum fine 
was changed to YTL 46,000 and imprisonment for up to four years or both, and closure of the 
business for at least one year. Concerns have been  expressed about provisions that delay the initiation 
of infringement suits until after th e patent is approved and published.145 
148. The Turkish Constitution stipulates that cases shoul d be dealt with exped itiously and with the 
least possible cost.  The losing party pays the costs, including attorneys' fees.  The State bears the cost 
of criminal proceedings, but the convicted person pays the expenses at the end of the procedure.  The 
number of penal actions brought under IPR legislati on rose from 4,318 in 2001 to 6,504 in 2006;  the 
number of civil actions decreased from 2,558 to 2,117  over the same period. Approximately half of 
total actions were in Istanbul. 
149. Article 57 of the Customs Law sets out a procedure to enable a right holder or his/her 
representative to apply for the suspension of custom s procedures for counterfeit trade mark or pirated 
copyright goods.146 Customs authorities may also suspend th e procedure on their own initiative, where 
solid evidence is available. 
150. A public anti-piracy campaign was begun in 1998,  and efforts have been made to educate 
businesses, consumers, judges, prosecutors, and othe rs on the implications of the IPR legislative 
framework. Several training programmes have taken place over the last few years in selected IPR institutes in Europe; a documentation centre was set  up at the IP Research Institute, under the 
umbrella of the University of Ankara; and prepar ations are continuing for the establishment of a 
network between IPR courts, the Ministry of Jus tice, customs administration, and the documentation 
centre. 
                                                     
 
145 USTR (2006). 
146 The customs procedures for goods infringing trade marks, geographical indications, and industrial 
designs, and rights covered by the Intellectual and Ar tistic Works Law are regulated by Article 57 of the 
Customs Law No. 4458.