F A Q ( Frequently Asked Questions)

1. GENERAL ECONOMIC INFORMATION

1.1. What are the main economic indicators of Turkey?
(i.e.GDP growth, employment, exports and imports)
GDP annual average growth rate is 4.2% for period 1995-2000, is planned to be 6.5% for 2000-2005 and 7% for 2000-2023 periods.

1.2. What is the rate of inflation on the last 3 years?

1.3. Is there a minimum wage in Turkey?

A minimum wage is set by the government, but actual wages are higher than the minimum wage rate. Salaries are normally reviewed on a half yearly or quarterly basis. The review of wages depends on whether there is a collective bargaining agreement with a union and how long this is valid for. Current minimum gross wage for the period between January 1 and June 30, 2001 is 118,957,500 TL. for the employees less than 16 years old and 139,950,000 TL for the others.

1.4. What are the electricity prices for industry ?

Price in USD (Per kWh, Incl. Taxes)
1999 = 0.0883
2000 = 0.0710

1.5. Is it possible in Turkey to employ ex-patriates ?

The employment of foreign personnel is possible in Turkey. In order to be able to work and reside in Turkey, all non-residents must first obtain a work permit from the General Directorate of Foreign Investments and parallel with this permit, a residence permit from the Ministry of Internal Affairs.

1.6. What are the number of paid vacation days in Turkey ?

Years Paid Vacation Days (working day)

2. FOREIGN TRADE

2.1. Is it free to export all goods from Turkey?

All goods, other than those whose exportation is prohibited by laws, decrees and international agreements, can be freely exported within the framework of the Export Regime Decree.
However, within the framework of WTO rules, restrictions and prohibitions on exports may be imposed in case of market turmoil, scarcity of exported goods, in order to protect public safety, morals, health; flora and fauna, environment, as well as, articles bearing artistic, historical and archeological value.
The goods whose exportation is prohibited and subject to permit are listed in the Communiqué numbered 96/31 ( (http://www.foreigntrade.gov.tr).

2.2. Export Credit, Guarantee and Export Credit Insurance Schemes

Turk Eximbank has an important role to play in the liberalization and outward orientation of the Turkish economy. Increasing the competitiveness of Turkish exports under free market conditions is the Bank's main goal which coincides with Turkey's international commitments. Following Turkey's agreement to eliminate export subsidies in accordance with GATT provisions and the subsequent elimination of all direct incentives to exports, export credits extended through Turk Eximbank have played a crucial role in securing the stable export growth.

Turk Eximbank enhances export Performance primarily through her credit, guarantee and export credit insurance. For further information please consult : http://www.eximbank.gov.tr

2.3. What is the current Import Regime?

The Import Regime of 2001 which is transparent, explicit and easy to understand for the importers and other users, has been prepared by taking into account the agreement establishing the World Trade Organization (WTO) to which Turkey is a member, the Customs Union Agreement between Turkey And the European Union and within this context, the free trade agreements signed with various countries, the preferential treatments granted by Turkey to least Developed Countries as well as sector specific needs.

Customs duties have been rearranged according to the kind (industrial, agricultural, processed agricultural, fish and fishery products) and sources (country or country groups) of the products in order to provide more openness and transparency to the regime and to make it simpler and more understandable for the importers and other users.

For further information do not hesitate to contact :
http://www.foreigntrade.gov.tr
Undersecretariat for Foreign Trade
Inonu Bulvari, 06510 , Emek - Ankara

2.4. What are the most important goods imported by Turkey?

2.5. What documents are required for import and export?

In order to be an importer, having a tax number is sufficient. For importation of agricultural products and some specific items for public order, public moral and public security, preservation of the human, animal and plant health, the protection of the environment and consumer rights, additional documents may be required by the relevant authorities.

2.6. What are the import laws to bring in equipment (machinery) from other countries?

The importation of equipment and machines is totally free except some of products which can only be imported with guaranteed after-sale maintenance, repair and service certificate. Those are air conditioner, washing machines, water heaters, earth moving equipment, lathes, TV sets, motor vehicles, tractors and such. On the other hand, importation of old, used, renovated, faulty (defective) and flat (obsolete) goods is subject to permission from the Undrsecretariat for Foreign Trade.

2.7. What is the custom clearance time and cross border waiting time for the most important border crossings to Western Europe?

Turkey has two border crossings to Western Europe via Bulgaria and Greece which are available for TIR passing. There is no waiting at the customs area since the customs authority inspect the products during loading on truck in the factory.

3. FOREIGN INVESTMENT

3.2. What incentives are available for foreign companies ?

The Turkish incentive system for investments can be classified under three main headings :

• General Incentive Regime
• Incentives granted to Small and Medium Sized Enterprises (SMEs)
• Incentives granted to less developed regions

3.3.What is the time required to set up a business in Turkey (the time to register a Turkish company)?

Average time required is three weeks or less than that.

3.4. What kind of procedures have to be completed to set up a business?

Please take the following steps to establish a limited or joint stock company in Turkey.

First step
Please submit the following documents to the General Directorate of Foreign Investments

Second Step

For publishing the establishment of the company, please apply to the Ministry of Industry and Trade

Third Step

For endorsing permission certificate (red paper), apply the GDFI with the following documents:
1- Original of the permission certificate
2- Trade Registry Gazette in which the establishment of the company is published
3- If the foreign exchanges brought as foreign capital is converted in to Turkish Liras, Foreign Exchange Purchase Receipt or if they are kept in foreign exchange deposit account, related bank document should be submitted. ( Foreign Exchange Purchase Receipt or relating bank document should include the name of foreign capital company and foreign partner, the country from which the foreign exchange transferred, currency amount, USD equivalent, TL equivalent and state that the currency was brought as company capital.

Time frame to obtain the following permits:

• Land use permits 1-15 days
• Planning permits 1-15 days
• Building permits 1-15 days

The cost of receiving the above permits is negligible.

3.5. Which agencies have the responsibility of promoting investments?

General Directorate of Foreign Investments (GDFI), operating within the Undersecretariat of Treasury, is the main governmental institution promoting foreign investment in Turkey. The contact data for GDFI is as follows;

Address : General Directorate of Foreign Investments (Yabanci sermaye Genel Mudurlugu)
Undersecretariat of Treasury ( Hazine Mustesarligi)
Inonu Bulvari 06510
Ankara - Turkey
Phone : 90-312-2128914
Fax : 90-312-2128916
URL : www.hazine.gov.tr/english/ybsweb/index.htm