A Change in Support for the Exporter...

The Ministry of Economy announced a new support package, taking into account the financing needs of exporters. The package said that companies with potential to take part in the global supply chain were under support on a project-by-project basis and for 2 years, 50% of them were up to US$1,000,000. It was also included in the same package that it would be supported for Market Entry Documents for up to US$250,000 per year per company.

To access the Related Official Gazette: http://www.resmigazete.gov.tr/main.aspx?home=http://www.resmigazete.gov.tr/eskiler/2016/11/20161112.htm&main=http://www.resmigazete.gov.tr/eskiler/2016/11/20161112.htm

Market Entry Documents Support

Official Gazette dated November 12, 2016

Number: 29886

From the Para-Credit and Coordination Board:

Date : 08/11/2016

Resolution No. 2016/10

Subject : Support of Market Entry Documents

by the Para-Credit and Coordination Board;
Taking into account the Ministry of Economy’s letter dated 26/09/2016 and numbered E.102310, and Decision No. 2 adopted on agenda items 3 and 8 at the Export State Support Evaluation Committee’s Meeting No. 14 dated 19/08/2016, it was decided to adopt the annexed “Decision Amending the Decision on Support for Market Entry Certificates (Decision No. 2014/8)”, prepared under the Decision on State Aid for Exports No. 94/6401.

Decision no.: 2016/10

Resolution on supporting market entry documents (decision no. 2014/8)

Article 1- Article 1 of the Resolution on the Support of Market Entry Documents dated 26/8/2014 and numbered 2014/8 of the Para-Credit and Coordination Board published in the Official Gazette dated 04/09/2014 and numbered 29109 has been amended as follows.

"MADDE 1 – (1) The purpose of this Decision is to meet a certain portion of the expenditures incurred by companies from accredited institutions and/or organizations that ensure compliance with the technical legislation for the environment, quality and human health as a more effective supplier to the global supply chain through documentation procedures of German entry to the foreign market."

Article 2- Article 2 of the Decree referred to has been amended as follows.

"MADDE 2 – (1) This Decision covers the support of companies engaged in industrial and/or commercial activities in Turkey to ensure their participation in the global supply chain by receiving market entry documents."

Article 3- Article 4 of the aforementioned Decision has been amended as follows.

"MADDE 4 – (1) In this Decision:

a) Ministry: Ministry of Economy,

b) IBGS: Secretary General of Exporters' Associations,

e) Circular: The Generality of Practice Procedures and Principles of this Decision,

ç) Market Entry Documents: Quality from accredited institutions/institutions that are mandatory or advantageous in entering a country market, showing environmental documents/certificates; signs of human life, property safety and safety; laboratory analysis of agricultural products and/or test/analysis reports;

d) Global Supply Chain: A global network of manufacturers and distributors that includes the translation of raw materials into intermediate goods and intermediate goods into final products, distribution of intermediate/ultimate products to customers, and after-sales services phases,

e) Global Supply Chain Competency Project: Includes costs of quality and specified in the Circular, which will enable companies to establish supplier relationships with global firms,

f) Company: Collective, komandite, anonymous, limited and cooperative companies operating commercially and/or industrially under the provisions of the Turkish Commercial Code and specified in Article 124 of the Turkish Commercial Code,

It means."

Article 4- The article 5 of the Decree referred to has been amended as follows,

"MADDE 5 – (1) Under this Decision, companies' costs for the Market Entry Documents specified in the Circular are supported by 50%.

(2) Under this Decision, up to US$250,000 per company per year is granted for Market Entry Documents. The top limit of US$250,000 per year per company is calculated on the basis of applications made within a calendar year. The application date is the IBGS document entry date of the application file.

(3) Within the scope of the Global Supply Chain Competency Project, the costs of the companies as outlined in the project and under the Circular are supported by 50% over the course of 2 years and up to US$1,000,000 in total.

(4) A company's maximum 1 project is supported under this Decision."

Article 5- The Article 6 of the aforementioned Decision has been amended as follows.

"MADDE 6 – (1) Companies' expenditures under this Decision shall also be assessed under support if these expenditures are carried out through companies that have at least 51% partnership share in organic bonds.

(2) Support applications are made by the company whose market entry certificate is issued and/or the Global Supply Chain Competency Project is accepted by the Ministry.

(3) The Ministry concludes its applications for the Global Supply Chain Competency Project by evaluating export strategy and policies in terms of content, purpose-appropriateness, budget and project management capacity within the framework of the company's potential for participation and sustainability in the global supply chain in the sector in which it is involved."

Article 6- Article 7 of the Resolution referred to has been amended as follows.

“ARTICLE 7 – (1) Companies benefiting from support payments for market entry certificates under this Decision must submit expense documents and the other documents specified in the Circular to the Exporters’ Association General Secretariat (İBGS) of which they are members within 6 months of obtaining quality or environmental certificates, marks indicating the safety and security of people, life and property, or the issue date of agricultural product laboratory analysis and/or test analysis reports. The İBGS document registration date is used to calculate this 6-month period.

(2) Companies are required to submit their applications for market entry documents to the same IBGS within one calendar year under this Decision.

(3) Expenditure documents relating to expenses under the Circular carried out by companies within the framework of Global Supply Chain Competency Projects and other documents specified in the Circular must be submitted to the Ministry/membership of the IBGS within 6 months at the latest from the date of the payment document. The Ministry/IBGS document entry date is based on the calculation of the 6-month period.

(4) In order to benefit from the support under this Decision, the companies applying must complete their incomplete information and documents within 3 (three) months at the latest from the notification date. If the deficiencies are not completed within 3 (three) months, the application for support is deemed not to have been made within the deadline. The 3 (three) month period begins with the Ministry/IBGS document-exit date and ends with the company's response on the notification being entered into the Ministry/IBGS document record.

(5) The Ministry and the IBGS shall notify the Central Bank of the Republic of Turkey of the companies and the amount of payment decided to be paid, following the necessary examination. Upon notification from the Ministry, the Central Bank of the Republic of Turkey makes the payment.

(6) The Ministry may make the necessary arrangements for the authorization of the BGS on the determination of companies to be paid by evaluating the application for support and the notification of payment amounts to the Central Bank of the Republic of Turkey."

Article 7- In order to come after Article 8 of the aforementioned Decision, the following Article 9 entitled "Authority" has been added and the other Article has been deposited accordingly.

"The Authority

Article 9 – (1) Any information, documents and other matters relating to the requested information, documentation and practice for the application of support and the conclusion of these applications are determined by the Circular regulated by the Ministry.

(2) The Ministry is authorized to determine the procedures and principles of implementation on matters regulated in this Decision, to provide instructions for implementation, to examine and conclude disputes with force majeure, special and compulsory situations to arise in practice, to reduce support rates if deemed necessary, to reduce the amount of support to be paid in exchange for receiving all kinds of public funds, and to restrict spending and support payment amounts to be assessed within the scope of support within the scope of budgetary means."

Article 8- The 9th article of the aforementioned Decision, entitled "Construction", was deposited after the addition of the "Authority" clause and replaced with its title as follows.

"Muayide

Article 10 – (1) Support payments found to have been taken unfairly under this Decision shall be collected from the concerned under the provisions of the "Law on the Collection Procedure of Amme Receivables No. 6183".

(2) The Ministry monitors and evaluates projects. If it is determined that the project activities are not conducted in accordance with the purposes and provisions of this Decision, the relevant activity is excluded from the support scope.

(3) In the event that it is determined that misleading information and documents are presented by companies under this Decision, legal action will be taken against them. In this context, requests for support of those who have been investigated, investigated, or sued are held until an audit report or a judicial decision is made on the matter. If the audit report or judicial decision is that the company offers misleading information and documents, the relevant application file of the company in question is removed from the support scope and unfulfilled support applications are not taken into consideration. The company cannot apply for a new application under this Decision for a period of at least two years from the date of the document release of the Ministry's inference notice letter."

Article 9- The 10th article of the Decree referred to has been removed and the following article titled "Istisna" has been added to come after the 10th article titled 'Intelligence' and other articles have been deposited accordingly.

"Istisna

Article 11 – (1) Companies taking advantage of the support included in this Decision cannot benefit from the same nature of support provided by other public institutions and organizations."

Article 10- Temporary Article 2-Added to the section titled "Temporary Provisions" of the aforementioned Decision.

"RESTING ARTICLE 2 – (1) As of the date of the publication of this Article, the provisions of the Otan Decision in force before the date of the entry into the market that has not yet been finalized under the "Decision on the Support of Market Entry Documents" 2014/8 shall apply in the application for support of the entry-in-market documents.

(2) For the documents of entry into the market received before the date of publication of this Article but after the date of publication of this Article, the provisions of the Resolution in force before the date of entry into force of this Article shall apply,

(3) The provisions of this Decision shall apply to applications that have not been finalized as of the date of entry into force of this Article."

Effectiveness

Article 11- (1) This Decision takes effect on the date of its publication.

Executive

Article 12- (1) The Minister of Economy executes the provisions of this Decision.