Free
Trade Zone
Free Zones are special sites
within the country but deemed to be outside of the customs border,
where the valid regulations related to foreign trade and other
financial and economic areas are not applicable, are partly applicable
or new regulations are tested in. Free Zones are also the regions
where more convenient business climate is offered in order to
increase trade volume and export for some industrial and commercial
activities as compared to other parts of country.
With the objective of increasing
export-oriented investments and production in Turkey, accelerating
the entry of foreign capital and technology, procuring the inputs
of the economy in an economic and orderly fashion and increasing
the utilisation of external finance and trade possibilities, Free
Zones Law numbered 3218 was issued in 1985. Since then,
list of Freezones in Turkey
direct link to Antalya
Freezone
direct link to Ýzmir Freezone
Free Zones became operational.
In general all kind of activities
can be performed in Turkish Free Zones such as manufacturing,
storing, packing, general trading, banking and insurance. Investors
are free to construct their own premises, while zones have also
available office spaces, workshops, or warehouses on rental basis
with attractive terms. All field of activities open to Turkish
private sector are also open to joint-venture of foreign companies.
Features of Turkish Free
Zones
Turkish Free Zones are tax free
zones. Income generated through activities in the Zones are exempted
from all kinds of taxes including income, corporate and value-added
tax.
The validity period of an operation
licence is maximum 10 years for tenant users, and 20 years for
users who wish to make their own offices in the zone; If the operating
licence is for production, these terms are 15 and 30 years for
tenant users and investors, respectively. The requested operation
licence period can be prolonged to 99 years according to the type
of investment.
Free Zones earnings and revenues
can be transferred to any country, including Turkey, freely without
any prior permission and are not subject to any kind of taxes,
duties and fees.
There is no limitation on the
proportion of foreign capital participation in investment within
the Free Zones.
In contrary to most Free Zones
of the world, sales into the domestic market are allowed in Turkish
Free Zones. (Sales to the domestic market is subject to a fee
of 0.5 % of the transaction value.)
Currencies used in the zone are
convertible foreign currencies accepted by the Central Bank of
Turkey.
Infrastructure of the Turkish
Free Zones is comparable with international standards.
Red tape and bureaucracy have
been minimised during application and operation phases by authorising
only one agency in charge of these procedures.
The geographical location of Turkey
provides significant advantages to the Turkish Free Zones.
Turkish Free Zones are adjacent
to the major Turkish Ports on the Mediterranean, Aegean and Black
Seas. In addition, they were established within easy access from
international airports and highways.
There is no procedural restrictions
regarding price, standards or quality of goods in the Turkish
Free Zones.
For a period of 10 years following
the commencement of operations in the zones, the strikes and lockouts
shall not be applicable. However, any disputes occurring within
the context to collective bargaining during the period shall be
resolved by the Supreme Arbitration Council.
In the Turkish Free Zones, Municipality
Law, Passport Law, Encouragement of Foreign Investment Law, and
all other articles of laws contrary to the provisions of the Free
Zones Law, shall not be applicable.
http://www.foreigntrade.gov.tr/SB/ENGLISH/freezone1.htm
