Imports of Crude Oil and Petroleum Products
1994-95
IMPORTS OF CRUDE OIL AND PETROLEUM PROD.
($
Million)
1994 1995 Change %
Total Imports 23.270,0 35.707,5 53,4
Crude Oil 2.432,1 2.917,2 19,9
Petroleum Products 200,4 199,3 -0,6
Gasoline 49,9 59,6 19,6
Motorine 95,8 86,6 -9,6
Fuel-Oil 54,7 53,0 -3,1
Liquefied Petroleum Gas 221,8 357,1 61,0
Other Petroleum Products 708,0 1.063,3 50,2
IMPORTS OF CRUDE OIL AND PETROLEUM PRODUCTS
Imports of crude oil The imports of crude oil in 1995 showed an increase of
increased by 20%. 19.9% over the previous year. While its share in total
imports was 10.5% in 1994 ,it declined to 8.2% in 1995. The
imports of fuel, that have a very low share in total
imports, showed a decrease of 0.6% as compared with the
previous year. The imports of liquefied petroleum gas (LPG)
was the product showing the greatest increase (61%) in the
same period.
IMPORTS BY SELECTED FOREIGN CURRENCIES
EQUIVALENT FOREIGN EQUIVALENT US$
CURRENCY
1994 1995 Ch% 1994 1995 Ch
US$ 13.801,9 21.079,8 52,7 13.801,9 21.079,8 52,7
DM 7.696,3 10.693,9 38,9 4.768,1 7.472,1 56,7
FF 5.171,2 6.243,3 20,7 941,3 1.255,5 33,5
HFL 481,1 667,0 38,7 266,6 415,1 55,4
FS 629,2 951,1 51,2 461,8 810,7 75,5
YEN 58.041,2 78.042,7 34,5 572,3 854,4 49,3
LIRE 1.618.554,1 2.548.913, 57,5 1.004,2 1.567,9 56,2
4
STRL 470,0 738,8 57,2 724,1 1.165,2 60,9
List Total 22.540,3 34.620,7 53,6
TOTAL 23.270,0 35.707,5 53,5
A total of 59% of our total imports in 1995 was in the
dollars denomination and a 21% portion was in the DM
denomination and approximately 80% of our imports was made
with these two foreign currency denominations. The US
dollar equivalent of the foreign currency denominations in
the table above for the imports forms a 97% portion within
total imports.
IMPORTS BY COUNTRY GROUPS
($ Thousand)
1994 1995 95/94
Country Groups Value Distributi Value Distributio Change
on% n% %
I. A.OECD Countries 15.334.235 65,9 23.595.451 66,1 53,9
1.EU 10.915.178 46,9 16.860.584 47,2 54,5
Countries 562.657 2,4 892.037 2,5 58,5
2.EFTA 3.856.400 16,6 5.842.830 16,4 51,5
Countries
3.Other OECD
Coun.
B. Non- OECD 7.935.784 34,1 12.113.560 33,9 52,6
Countries. 2.589.907 11,1 4.554.538 12,8 75,9
1.European 860.749 3,7 1.384.456 3,9 60,8
Countries 334.570 1,4 622.011 1,7 85,9
2.African 2.529.498 10,9 2.687.884 7,5 6,3
Countries 1.290.924 5,5 2.547.996 7,1 97,4
3.North & South 330.136 1,4 316.675 0,9 -4,1
America
4.Middle East
Coun.
5.Other Asian
Coun.
6.Other
Countries
II.Black Sea 2.166.462 9,3 3.998.113 11,2 84,5
Economic Cooperation
Economic 922.158 4,0 1.136.786 3,2 23,3
Cooperation
Organization
Commonwealth of 1.820.781 7,8 3.314.727 9,3 82,0
Independent States
Turkic Republics 189.668 0,8 287.276 0,8 51,5
Organization of the 3.513.338 15,1 4.509.567 12,6 28,4
Islamic Conference
The share in imports of When we examine our imports in 1995 by country groups, it
the OECD countries was appears that our imports from the OECD countries, with a
66% and the share of value of 23.6 billion US dollars, constituted 66.1% of our
the EU countries was total imports and increased by 53.9% compared with 1994.
55%. The imports from the EU countries, which have the largest
share within OECD countries, increased by 54.5% and
reached 16.9 billion US dollars; their share in total
imports was 47.2% and their share in imports from OECD
countries was 71.5%. Similarly, imports from EFTA countries
showed an increase of 58.5% and reached 892 million US
dollars. The imports from non-OECD countries increased by
52.6% in 1995 and exceeded 12 billion US dollars. However,
their share in total imports was reduced to 33.9%. The
largest import increases in this group were revealed as
97.4% from Asian countries, 85.9% from American countries,
75.9% from European countries and 60.8% from African
countries.
Imports from the CIS As we further examine the increase in imports by selected
countries increased by country groups in 1995, we observed that the largest import
82%. increases were of 84.5% from the Black Sea Economic
Cooperation countries (approximately 4 billion US dollars),
82% from the CIS countries (3.3 billion US dollars) and
51.5% from the Turkic Republics (287 million US dollars).
IMPORTS BY CONTINENTS
($ Billion)
CONTINENTS 1994 1995 Change %
Grand Total 23.3 35.7 53.4
Europe 13.9 21.966 58.6
Asia 5.3 7.3 36.7
America 2.9 4.7 61.6
Africa 0.9 1.4 61.1
Oceania 0.3 0.3 14.5
Imports from the European continent constituted 61.5% of
our total imports and recorded an increase of 58.6% over
the previous year. The greatest increase in imports was
from the American and African continents at 61%.
IMPORTS BY SPECIAL COUNTRY GROUPS
($ Billion)
SPECIAL COUNTRY GROUPS 1994 1995 Change %
Arab Countries 2.4 3.0 27.1
Non-EU Countries 5.4 8.1 49.5
Commonwealth of Independent 1.8 3.4 83.2
States
Persian Gulf Countries 2.3 2.2 -4.9
Islamic Countries 3.4 4.3 28.6
North African Countries 0.6 1.1 81.9
OPEC Countries 2.8 3.2 13.7
GATT Countries 17.5 27.2 55.2
In imports by country groups, the highest increases
observed were from the Former Soviet Union Republics at
83.2% and from North African countries at 81.9%. The
imports from Persian Gulf countries recorded a decrease of
4.9% as compared with 1994.
Imports By Countries
TOP TEN COUNTRIES IN TURKEY'S IMPORTS
($ Million)
COUNTRIES 1994 Distributi 1995 Distributi Change
on % on % %
Germany 3646 15.7 5548 15.5 52.2
USA 2429 10.4 3724 10.4 53.3
Italy 2009 8.6 3193 8.9 58.9
The Russian Federation 1045 4.5 2082 5.8 99.2
France 1458 6.3 1996 5.6 36.9
United Kingdom 1170 5.0 1830 5.1 56.4
Japan 968 4.2 1400 3.9 44.6
Saudi Arabia 1229 5.3 1385 3.9 12.7
The Netherlands 740 3.2 1084 3.0 46.5
Belgium-Luxembourg 532 2.3 912 2.6 71.4
LIST TOTAL 15226 65 23154 65 52.1
GRAND TOTAL 23270 100 35709 100 53.5
LIST TOTAL/GRAND TOTAL % 65 65
TOP TEN COUNTRIES IN TURKEY'S IMPORTS
(Distribution %)
The share of imports In 1995, the biggest volume of trade in imports was
from Germany was 16%. realized with Germany, just as in exports. The imports from
this country were of 3.6 billion US dollars in 1994 and
rose to 5.5 billion US dollars in 1995, with an increase of
52.2%. Its share in total imports was 15.5%. The greatest
increase in imports between 1994 and 1995 was realized from
Russia as 99.2%. Increases of over 50% occurred in the
imports from the USA, Italy and U.K. In 1995, while
increases in imports were recorded for all countries in
this group, the lowest increase was from Saudi Arabia with
12.7%.
THE INFLUENCE OF INFLATION AND EXCHANGE RATES ON FOREIGN
TRADE
The fact that the As of October 1995, the monthly changes in exchange rates
exchange rate was above were realized at a higher level than the increase in
inflation positively prices. The rate of increase in exchange rates in December
influenced exports. 1995 over November was 8% while the monthly rate of
increase in the Wholesale Price Index (WPI) remained at
4.3%. Higher increases in exchange rates than in prices
positively influenced our exports. Exports in October and
November 1995, as compared with the same months of the
previous year, recorded increases of 16.0% and 24.2%
respectively. Economic policies enforced in November in
view of early scheduled general elections caused the
increase in the dollar rate to exceed the inflation rate
and, in December, the value of this currency against the
lira rose by 8%.
Strikes negatively The strikes experienced in almost all sectors in the
influenced export second half of 1995 had a negative influence, particularly
performance. on the production of the manufacturing industry. The
Capacity Utilization Rate (CUR) in the manufacturing
industry, which was 84.3% in September, fell to 80.7% in
October and 79.4% in November. The low CUR observed in
November was the cause of the decreasing share of the
imports of raw materials in total imports which went as low
as 57%.
82% CUR in The 82% CUR observed in December 1995 and the ensuring
December 1995 gave increase in production were the cause of a growth in the
momentum to volume of trade. The capacity utilization rate in the
exports. manufacturing sector was 77.6% in 1995, which represents an
increase over the previous year.
CHANGES IN THE US $ AND THE WHOLESALE PRICE
INDEX (WPI)
US Dollar (1994=100)
Months TL Equivalent Change % WPI Change %
December 1994 38.726 0 0
January 1995 40.150 3.7 10.2
February 41.048 2.2 7.1
March 41.750 1.7 5.5
April 42.288 1.3 5.1
May 42.943 1.5 1.9
June 43.163 0.5 1.3
July 44.441 3.0 2.3
August 46.700 5.1 2.3
September 47.744 2.2 4.6
October 49.996 4.7 3.7
November 52.361 4.7 3.5
December 56.575 8.0 4.3
CHANGES IN FOREIGN EXCHANGE RATES AND
WHOLESALE PRICE INDEX IN 1995
A 2.5% portion of the It is necessary to take into account the changes in the
export deficit arises cross-exchange rates that influence foreign trade figures
from the influence of even if they appear to be slight. Due to changes in
the cross - exchange cross-exchange rates, a difference of 713.9 million US
rate. dollars emerged (calculated by taking ten denominations of
foreign currency as the basis) in Turkey's exports which
were of 21.6 billion US dollars in 1995. This difference
that appears due to the influence of the cross exchange
rate has a 3.3% share in total exports whereas in imports
the difference was of 1 billion US dollars, and its share
was 3%. An approximately 2.5% portion of the 14 billion
dollar trade deficit which emerged at the end of 1995
arose from the negative influence of the cross exchange
rate.
THE INFLUENCE OF THE CROSS EXCHANGE RATE
ON FOREIGN TRADE
($ Thousand)
MONTHS Cross Total Exports Within Cross Total Within
Exchange Exports% Exchange Imports Imports%
Rate Dif. Rate Dif.
January 15.450 1.549.560 1,0 12.954 2.097.126 0,62
February 25.182 1.550.670 1,6 26.499 2.282.661 1,16
March 58.529 1.656.340 3,5 73.123 2.474.000 2,96
April 78.693 1.861.104 4,2 115.268 2.983.284 3,86
May 55.028 1.503.598 3,7 88.071 3,41
2.584.023
June 68.542 1.834.779 3,7 107.573 3.046.489 3,53
July 86.761 1.789.974 4,8 114.413 2.876.391 3,98
August 55.360 1.748.123 3,2 96.823 3.192.027 3,03
September 43.209 1.750.031 2,5 62.738 3.066.373 2,05
October 70.756 1.936.761 3,6 104.834 3.212.557 3,26
November 91.756 2.059.088 4,5 137.074 3.574.003 3,84
December 64.635 2.396.446 2,7 130.657 4.318.582 3,03
TOTAL 713.900 21.636.474 3,3 1.070.026 35.707.516 3,00
CONCLUSION
The volume of world It is forecast that the volume of world trade will
trade will increase increase and world economy will arouse in the forthcoming
in the forthcoming years as a result of final decisions taken at the Uruguay
years. Round and the establishment of the World Trade Organization
(WTO). The rise in economy will occur first of all in the
agricultural sector with a higher flow from developing
countries towards developed countries and, connected to
this, it is expected that intra-regional trade will
increase. Turkey's foreign trade will also be positively
affected by these developments and in particular, the
elimination of quotas will lead to advantageous results for
developing countries which are textile exporters like
Turkey. If West European countries maintain their share in
world trade as world economy itself grows as its actual
pace, Turkey is expected to increase her trade at high
rates with her partners in the Customs Union.
EXPORT FORECAST FOR THE PERIOD 1996 - 2000
($ Million)
1996 1997 1998 1999 2000
January 1.897 2.248 2.641 3.072 3.540
February 1.872 2.224 2.623 3.057 3.582
March 1.981 2.339 2.740 3.177 3.651
April 2.109 2.467 2.880 3.317 3.795
May 1.874 2.231 2.636 3.081 3.561
June 2.070 2.449 2.862 3.306 3.790
July 2.142 2.520 2.930 3.380 3.867
August 2.137 2.519 2.934 3.386 3.876
September 2.345 2.732 3.150 3.605 4.098
October 2.335 2.718 3.140 3.599 4.095
November 2.307 2.696 3.121 3.582 4.082
December 2.932 3.325 3.751 4.217 4.719
TOTAL 26.001 30.468 35.408 40.779 46.656
CHANGE % 19.0 17.0 16.0 15.0 14.0
Turkish exports will Our exports, which were of 21.6 billion US dollars in
double by the year 1995, are estimated to grow approximately two-fold (46
2000. billion US dollars) by the year 2000, depending on
developments in our region and in world trade.
Turkey, as a result of the policies of market opening and
integration with world economy adopted since the beginning
of the 1980s, aims to reach a higher export performance and
steady development in the 2000s. To attain this target,
export-oriented industrialization policies were adopted as
a principle, following stability in monetary and commodity
markets. Such an approach also necessitates the enforcement
of policies which would permit sustainable export growth.
These courses of action should be followed simultaneously
and in a compatible way.
Taking into consideration trends of past years, it has
been forecast that at the beginning of the 2000s, the
exports of agricultural products will reach at the level of
7.9 billion US dollars, the exports of mining and quarrying
products 1.8 billion US dollars and the exports of
industrial products 36.9 billion US dollars.
Iron and steel A study by sectors shows that our exports of textiles and
production and exports clothing articles will increase with the removal of quotas
will increase. and maintain their prevailing position. This sector is
expected to be followed by electrical machinery and
equipment, motor vehicles, glass, ceramic and food industry
products. Significant production increases in the iron and
steel sector will be obtained as soon as the European Coal
and Steel Community (ECSG) Agreement takes effect and, as a
result of the policies and measures applied, exports are
expected to expand and increase.
The Customs Union and A significant increase in our exports primarily to the
the SAP will have European Union will be observed as a result of our access
positive influences. to the Customs Union and the operation of the Southeastern
Anatolia Project (SAP).
It is projected that in the 2000s, our exports to the
European Union will reach 20.5 billion US dollars and
approximately 50% of it will be composed of textiles and
clothing articles. Overall exports are expected to reach
the level of 50 billion US dollars in 2000 as a consequence
of the dynamic impacts of the Customs Union and the rise in
the production of agricultural products used in industry
following the full operation of the SAP.
For the realization of the targeted exports in the 2000s,
it is forecast that our imports will reach the level of 60
million US dollars by recording an annual average increase
of 15% within the next five years. Connected to these
developments, the ratio of exports to imports will be
around 65%-75%.
No significant change is expected in imports by country
groups, and EU countries will maintain their important
share in our imports. Furthermore, it is estimated that
commercial relations with the Turkic Republics will
increase and hold a significant place within our total
foreign trade.
Exports are related to One of the most important factors in ensuring a steady and
investment and sustainable increase in exports is the growth in
production. investment. Exports are directly related to investment and
production. Unless increases are obtained in these areas,
it would not be possible to have steady and significant
growth in exports. It is necessary to put urgently into
practice policies aiming at decreasing credit and interest
rates with the objective of increasing investments. Income
and expenditure reforms aiming at the financing of
investments are also inevitable.
It is important to direct the foreign capital investments
into export-oriented areas. A total of 90% of the former
export commitments by foreign capital investments has been
fulfilled by the manufacturing industry. In other words,
the orientation of foreign capital investments towards the
manufacturing industry is a factor which can directly
influence an increase in our exports.
High real interest The most important factor in obtaining a continuous
rates and overvaluation increase in exports and assigning a steady structure to
of the Turkish Lira is imports is the application of a real exchange rate. It is
decreasing export mandatory to realize a balanced change in real exchange
performance. rates which would not hinder export activities nor fuel
inflation. High real interest rates and overvalued Turkish
Lira are the most important factors that stagnate exports.
The reasons for this are high and continuous public
deficits and the method of financing them. Consequently,
export-oriented measures and policies applied without
bringing financial discipline to the national economy will
only have a limited influence.
The practice of export As a result of our access to the Customs Union with the
incentives will be EU, it is an obligation to apply incentives conforming to
maintained. international norms rather than direct export subsidies.
It is necessary to adapt the credits given by Eximbank to
the changing conditions and to increase them when needed.
SMEs will be oriented The share in total exports of the Small and Medium-Sized
towards exports. Enterprises (SMEs), which realize 90% of the total
production in our country, is around 7-8%. These
undertakings which have a significant export potential need
support for their growth in scale.
The greatest problems for the SMEs at the time of exports
and imports are insufficient financing and the greater risk
assumed. It is of importance to practice modern financial
techniques such as forfeiting, factoring, etc. for meeting
their financial needs and decreasing their risk, and to
inform the companies on these issues.
It is also necessary to provide them in an effective
manner with state aid which would create a flow of
systematic and objective information on potential markets,
assist them in strategic market research, secure better
acquaintance with their new markets, and facilitate their
participation in international activities concerning
cooperation among enterprises of the same size. State
assistance should equally be extended to educational
activities with the aim of securing skilled workers and
world quality.
The Free Zones should Most of the time, it is possible only with financial
be restructured and support to realize the encouragement of Free Zone
supported. activities and investments therein. The Fund for the
Establishment and Development of Free Zones which was
established with this objective, should be removed outside
the General Budget and even re-structured as a new.
When it is considered that there is no short-term
obligation of our country for the adaptation of the Free
Zones Legislation to the EU under the Customs Union, it is
clear that adaptation will be on the agenda only in the
process of full membership. Nevertheless policies should be
set in this direction by continuously following the free
zones legislation of the Community.
When setting foreign trade policies, it is necessary to
dwell with seriousness on practices that will ensure the
value added export product to remain in national economy.
While undertaking activities aiming at product
diversification, it is also indispensable to create
priority and alternative sectors. It is necessary to make
Istanbul into a fashion center with the objective of
developing further the textile and clothing industry which
is the driving sector in our exports.
THE ACTIVITIES OF THE UNDERSECRETARIAT
OF FOREIGN TRADE
EXPORTS
The legal framework has The Multi-Partnership Company model that was initiated in
been prepared for the 1992 with the objective of uniting and orienting to exports
organization of the small and medium-scaled enterprises did not find much
Sector-Based Foreign application, so that in 1994 it was targeted to organize
Trade Companies and foreign trade companies engaged in activities in the same
encouragement has been branch of production on a sector basis and later, in 1995,
assured for their three companies obtained the status of Sector- Based
establishment. Foreign Trade Companies.
According to current model, a "Sector-Based Foreign Trade
Company" must have a minimum capital of TL 5 billion and be
responsible only for exports, comprise ten small or
medium-sized enterprises each employing 1 to 200 workers
and gathered under a single organization in the export
sector, seek access to world markets, specialize in foreign
trade and consequently engage in more effective activities.
In the communiqué published for the propagation of this
model, conditions have been made even more flexible (as to
the number of partners, amount of capital, annual export
level, etc.) for the regions with development priority or
with an insufficient number of companies active in the same
branch of production. The new communiqué was put into force
in 1996.
State support to Turkey had the obligation of adopting the international
foreign trade now norms of state aid to the export sector after signing the
conforms to Final Act of the GATT/WTO Uruguay Round which sets a
international norms. definite basis for standard behaviour in foreign trade, and
joining the Customs Union with the European Union in 1996.
In this connection, six decisions prepared in the
framework of the Decree No. 94/6401 on Export Incentives
entered into force on 1 June 1995.
Research and Research and Development Assistance: It is aimed with this
development support only to meet a definite proportion of the
assistance was expenditures that can be evaluated and followed in the
initiated. scope of research and development projects, or to provide
capital support for them.
Environment costs The support for the costs of environment, in accordance
are supported. with international legislation, meets 50% of the
expenditures made for a certificate of conformity with
environmental standards or a logo,and of laboratory test
fees for checking conformity with environmental standards,
providing these do not exceed 1,000 US dollars, and 25% of
documented expenditures by companies engaged in production
in organized industrial regions that have facilities
protecting the environment and enterprises that benefit
from shared facilities of the public administration for the
control of wastes in regions where there are sensitive
ecosystems, providing these do not exceed 2,000 US dollars.
Participation in Support for National or Individual Participation in Fairs
fairs and and Exhibitions Organized Abroad: This support is based on
exhibitions abroad the principle of meeting 40% of the participation costs for
is supported. fairs or exhibitions organized abroad either by companies
acting under an organizer which ensures national
participation on behalf of Turkey, or by companies that
participate themselves.
Participation in Support for Domestic Specialty Fairs and Exhibitions of
domestic fairs is International Status: This support includes meeting 50% of
supported. the expenditures by those who organize a specialty fair in
Turkey at international level and the advertisement and
promotion activities by domestic organizers before and
during the fair, according to criteria which will be
determined by the Undersecretariat of Foreign Trade.
Market research is Support for Market Research in target markets determined
supported. by the Undersecretariat of Foreign Trade is made available
to small and medium-sized enterprises, and to Sector-Based
Foreign Trade Companies that will be formed by an
association of such enterprises.
Opening of branch This support meets only once 10% of the fixed assets of a
offices and stores branch office or a store opened or to be opened abroad by a
abroad and company (up to 5000 US dollars), 50% of the rental expenses
promotional (up to 10,000 US dollars) and 20% of advertisement costs.
activities in
foreign countries
are supported.
Educational assistance An Educational Assistance decree has been prepared for
is under practice. practice in 1996 as a supplement to the above in the
framework of the Customs Union to protect and increase the
chances for competition of small and medium-scaled
companies. With the educational assistance support, it is
aimed to increase the productivity of small and
medium-scaled industrial enterprises and their Sector-Based
Foreign Trade Companies, make it possible for them to
produce competitive goods in foreign trade, employ skilled
labour and back up the educational activities of their
workers.
The Export Regime was Export Legislation: The Export Regime Decree, the Export
published on 6 January Regulation and the related Communiqus were published in the
1996. Official Gazette on 6 January 1996 with the objective of
meeting developing and changing conditions as a requirement
of export policies in practice and in conformity with the
legislation of the European Union.
The State Ministry to which the Undersecretariat of
Foreign Trade is attached has been made responsible for:
-Bringing restrictions or prohibitions in exports because
of an extraordinary development occurring in the markets,
short supply of goods subject to exports, measures aimed at
protecting public safety, public morals, human health,
animals, plants or the environment, and the protection of
goods having artistic, historical and archaeological value,
-Making activities and arrangements that will confer
competitive power to products subject to exports by taking
into account obligations set by international
organizations, conditions of domestic and foreign markets
and practices related to product policies of other
countries, with the objective of ensuring the activities
that will guarantee the attainment of the economic and
social targets set in the development plans and their
annual programs.
Furthermore, the following was enacted by the same
legislation:
-Public institutions and organizations are bound to ask for
the opinion of the State Ministry to which the
Undersecretariat of Foreign Trade is attached at the stage
of preparing laws and governmental decisions or decrees
aiming at the restriction and prohibition of exports on the
basis of products, amounts and periods.
-The approval of the same Ministry is compulsory, already
at the identification stage and for the good coordination
of export activities, of export decisions to be taken by
institutions and organizations under their own Legislation,
and of rules and practices by competent authorities
entitled to licence the exports of given products.
-The obligation of holding an export certificate to make
exports has been abolished, and the possibility of making
exports has been extended to real person and corporate body
merchants who are subject to taxation (holders of a single
tax number), tradesmen and artisans who are engaged in
production activities and are registered at the Tradesmen's
and Artisans' Guild, to joint ventures and consortiums,
-The export declaration has been abolished and application
to the customs administrations is made with a customs
declaration ratified by the related union of exporters.
The Legislation for The Legislation for Inward Processing: With the Decree on
Inward Processing was the Inward Processing Regime published on 31 December 1995,
published on 31 the Incentive Legislation in effect was abolished and
December 1995. replaced by two new systems called "The Conditional
Exemption System in Imports" and "The Import Duty Refund
System" concerning exports to third countries of products
using imported inputs in their production process,
describing sales considered as exports in the Turkish
Customs Area and identifying the related measures. An
"Inward Processing Certificate" is compulsory for the
benefit of these measures.
The Legislation for The Legislation for Outward Processing: With the Decree on
Outward Processing was the Outward Processing Regime that was published in the
published on 31 Official Gazette on 31 December 1995 regulates activities
December 1995. relating to temporary exports of goods in free circulation
from the Turkish Customs Area to third countries for
further processing, and the return to free circulation of
processed products made thereof, through full or partial
exemption from customs duties (without prejudice to
existing or future provisions in bilateral or multilateral
trade agreements on customs duty exemptions for given
processed products).
IMPORTS
The Import Regime meets The Import Regime has been prepared according to the
Customs Union requirements of the Customs Union. The Additional Protocol
requirements. which entered into force on 1 January 1973 identified our
obligations in the Transitional Period according to a
definite schedule, but a very small portion was realized in
a long period of time, and the requisite infrastructure was
not ready. However, following the January 24th 1980
Decisions, with the liberalization process that was
initiated, gradually the required basis started to be
formulated. In 1984, the Import Regime underwent a complete
structural change and with further modifications until
1992, the process of liberalization was almost completed.
In 1993, with new amendments, it progressed to the Single
Taxation System in imports. Consequently, through the
fulfillment of further obligations arising from the
Additional Protocol, the required infrastructure for
completing the Customs Union was prepared.
Conformity with EU has The schedule for accelerated duty reductions and
been accomplished to a adaptation to EU's tariff was applied in the same period,
great extent. and assisted us to a great extent in fulfilling our
obligations. A series of new legislations which provided
adaptation to the Common Trade Policy that were promulgated
in 1995 and the Import Regimes for 1995 and 1996 ensured
the completion of the Customs Union.
The Uruguay Round Final On the other hand, the requirements of the Uruguay Round
Act, of which Turkey is Final Act signed on 1 April 1994 and enforced on 1
a signatory came into January 1995 eliminated the possibility for the countries
force on 1 January that signed this Agreement to adhere to individual codes as
1995. it had been in the past, and brought the obligation of
assuming completely the provisions of the Agreement.
Procedures undertaken in the framework of the Customs
Union, and various legislations prepared and put into force
ensured in Turkey the simultaneous realization of many
regulatory adjustments within the scope of GATT 94.
Consequently, these various adjustments that were prepared
also in the light of our bilateral requirements, gave the
opportunity of performing our obligations arising from the
Bilateral and Uruguay Round and the Additional Protocol at the same time.
multilateral agreements
were signed. BILATERAL AND MULTILATERAL AGREEMENTS
In addition to trade related activities connected with
multilateral agreements in which Turkey participated in
1995, framework agreements were signed within the scope of
bilateral relations, meetings of Joint Economic Commissions
(JEC) and of Business Councils were held and, as a result
of these meetings, JEC Protocols aiming at developing our
economic and commercial relations were signed with many
countries.
The participation of Efforts were made in the direction of greater
private sector participation by private sector representatives in the JEC
representatives to the activities with the objective of increasing cooperation
JEC meetings was with the private sector and of supporting Turkish
increased. companies which are scattered in almost every part of the
world. In just the same way, concrete steps were taken in
the direction of holding the JEC meetings at the same time
with the Business Council meetings. Another step in this
direction is the assumption of work concerning contracting
services abroad.
Furthermore, in the framework of bilateral activities, the
economic structure as well as trade and investment
legislation of various countries are being monitored and
the changes communicated to concerned institutions and,
whenever possible, great care is taken to increase
cooperation with the private sector.
On the other hand, in 1996, a series of new trade rules
have been put into practice in Turkey in the framework of
the Customs Union and it is obvious that our relations with
third countries will be dependent on these rules.
Consequently, particularly in 1996, activities will also be
maintained on the influence of the Customs Union on third
countries and the review of Trade and Economic Cooperation
Agreements between Turkey and various countries.
The field of activities 1995 was an important year equally from the viewpoint of
of the Undersecretariat GATT which determines the rules and disciplines related to
has expanded due to the international trade. GATT succeeded in gaining an
establishment of the organizational structure at the beginning of 1995 and
WTO. functionality was conferred to the agreement establishing
the World Trade Organization (WTO). New subjects entrusted
to this were added to the field of duties of our
Undersecretariat. The WTO activities are closely followed
within the scope of our obligations.
RELATIONS WITH THE EUROPEAN UNION
Developments within the The developments within the EU are monitored continuously
European Union are and, when necessary, direct information is provided on all
monitored continuously. the practices of the Community which are of interest to our
exporters and importers, to the related exporters' unions
and to sectors that have relations with the EU.
Furthermore, active and regular participation in the
meetings of the EU Coordination Committee, which is one of
the EU Committees (Supreme Committee, EU Coordination
Committee, Consultative Committee) within the Turkish
Administrative Structure established in accordance with the
Prime Minister's Circular No. 89/4 and dated 3 April 1989,
is assured as well as coordination within the
Undersecretariat for the application of the decisions taken
there.
Applications started FREE ZONES
for the ISE Free Zone. Within the framework of Free Zones Law No: 3218, Mersin,
Antalya, Aegean, Istanbul Atatürk Airport, Trabzon,
Istanbul - Leather, Eastern Anatolia and Mardin Free Zones
have been put into operation. Applications are received
since 1 February 1996 for the Istanbul Stock Exchange (ISE)
International Stock Exchange Free Zone which will open
soon.
The boundaries of some Along with this, the locations and boundaries of
of the Free Zones have Yumurtalyk-Adana, Filyos-Zonguldak and Samsun Free Zones,
been determined. and the Atatürk Airport Free Zone Offshore Banking Center
in Istanbul have been determined.
The volume of trade of The volume of trade of Mersin and Antalya Free Zones that
the Free Zones has started commercial activities in 1988 was of 154 million US
reached 7,646 billion dollars and at the Free Zones active in Mersin, Antalya,
US dollars. Aegean, the Atatürk Airport in Istanbul, Trabzon and the
Istanbul - Leather Free Zone reached a total of 7,646
billion US dollars.
At the end of 1995, there were 773 domestic and 178
foreign companies operating in the free zones and they
provided opportunities of employment approximately for
6,000 people.
STANDARDIZATION IN FOREIGN TRADE
The Regime on Technical Within the framework of our commitments arising from the
Regulations and World Trade Organization Agreement and the Customs Union
Standardization in Agreement, the Regime of Technical Arrangements and
Foreign Trade Regime Standardization in Foreign Trade has been prepared with the
has been prepared aim of adapting the technical arrangements to the foreign
trade system and filling the gap that may arise in the 5
year transiton period for adaptation to the EU technical
legislation.
. The Decree instituting the Regime of Technical Regulations
and Standardization in Foreign Trade and the Regulations
and Communiques based there on were published in the
Official Gazette on 1 February 1996 and entered into force.
The aim of this Regime is to prevent the technical
legislation, specifications and standards applied in
foreign trade from constituting a structure that would
create an unnecessary obstacle to international trade, to
ensure that exported products do not harm the environment,
conform to health and safety norms, to increase their
competitiveness and quality, and in the case of imports, to
ensure preventive measures that would not create a
difference between imported and domestic products, and
which protect human health and safety, animal and plant
life or the environment.
Imported commodities Conformity with Turkish or international standards is
are subjected to required of imported products which would be subject to
compulsory domestic compulsory standards if they were domestically produced.
standards. The checking of industrial products in imports is performed
by the Turkish Institute of Standards (TIS) and the quality
control of a portion of the agricultural products is
fulfilled by the Provincial Organization of the
Undersecretariat of Foreign Trade.
No. 95/10 and 95/16 In addition, the No. 95/10 and 95/16 Communiques annexed
Communiques annexed to the Import Regime have been included within the scope of
to Import Regime the Regime of Technical Regulations and Standardization in
were included within Foreign Trade. According to this, the No. 95/10
the scope of the Notification has been published as Standardization in
Standardization Foreign Trade 96/4 (Communique Relative to the Control of
Regime. Imported Goods in Respect of Quality and Health) and the
95/16 Communique has been published as Standardization in
Foreign Trade 96/3 (Communique Relative to Items Kept Under
Control for Environmental Protection).
72 agricultural In the framework of the Regime, 72 agricultural products
products are covered are subject to the compulsory control of standards by the
by compulsory Provincial Organization of the Undersecretariat of Foreign
standards. Trade.
The aim of making The aim was adopted to make quality control at the
quality control at the production stage. Before this implementation is put into
production stage is practice, control is exercised at the import stage of
adopted. inputs under the regime of Technical Regulations and
Standardization in Foreign Trade. However, during the
import process, a number of facilities are provided to the
industrialists who produce goods carrying the TSE (Turkish
Institute of Standards) hallmark and those who have quality
system certificates such as TS-ISO 9000, AQAP and GMP for
their encouragement.
Commercial Analysis and On the other hand, export controls and import controls of
Standardization some products are made by the Group Leaderships of the
Laboratories are in Controllers of Standardization in Foreign Trade.
conformity with the Furthermore, in export controls, the required laboratory
technical requirements analyses are made also by the Commercial Analysis and
of the EU. Standardization Laboratories of the Provincial Organization
of the Undersecretariat of Foreign Trade. These
laboratories have the necessary technical capacity to
perform the controls in conformity with the technical
requirements of the EU.
Importers are held In the Regime, bearing in mind the need to orient
responsible for the importers towards self-control within an effective and
damages their products widespread quality control system, importer companies are
may cause to the user. held responsible for the damages which may be caused to the
user by the product they imported whether or not the
standard is compulsory. In such an evidence, the
Undersecretariat of Foreign Trade can request the importer
to prove the product's conformity to standards and in case
this is not met, administrative sanctions can be applied.
Coordination meetings are held with the participation of
related institutions and organizations to identify the
procedure that will be adopted for the determination of a
common opinion, the preparation of a work program and the
performance of activities required by this program in
adapting the Turkish legislation to the legislation of the
EU concerning the elimination of technical barriers to
trade.
The Agreement on Technical Barriers to Trade annexed to
the Agreements establishing "The World Trade Organization"
aims at preventing the technical regulations, standards and
conformity procedures of member countries from constituting
obstacles to international trade. The General Directorate
of Standardization in Foreign Trade, in accordance with the
aforementioned Agreement, has undertaken the duties of
consultation-notification-enquiry points concerning
technical regulations and procedures for evaluating
conformity.
Within the scope of activities for adaptation to EU
technical legislation, it is also required to apply EU
Directives in Turkey and adaptation to these Directives
will also be sought in the domestic market. In this
framework, the Regulations prepared by the Ministry of
Industry and Trade and other Ministries concerned, are
evaluated by the Undersecretariat, opinions are given with
the objective of adaptation to the EU technical legislation
in the context of the Association Council Decision No.
1/95, and legislative activities are undertaken
accordingly.
Practices related to the environment in EU countries are
examined with the objective of formulating an environmental
policy in Turkey and activities are carried out in the
direction of achieving a solution to the problems in our
exports and imports.
PUBLICATIONS OF THE UNDERSECRETARIAT
While carrying out the duties it has undertaken, the
Undersecretariat of Foreign Trade closely monitors various
domestic and foreign economic issues. It also conducts
research and publishes books and periodicals which are
related to specific subjects. This procedure is carried out
through by the Undersecretariat's own printing office
facilities employing the latest technology.
In addition to these studies, the following publications
are printed and distributed to domestic and foreign
organizations within Turkey and abroad.
Monthly publications:
Main Economic Indicators
Monthly Foreign Trade Bulletin
Monthly Foreign Trade Indicators
Economic Bulletin
The Turkish Free Zones
Quarterly Publications:
World Economies Bulletin
Turkish Trade
Foreign Trade Indices
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