BRINGING EXPORT PRICES TO THE COUNTRY

GENERAL CONDITIONS OF BRINGING EXPORT PRICES TO THE COUNTRY

04/09/2018 Official Gazette on Turkish Lira on the Protection of the Value No. 32 Relating to the decision Exports Cost About 2018-32 / 48 No. According to the notification ( "Notification" will be called.), The export transactions carried out by residents in Turkey The related costs are transferred or brought to the intermediary bank for the export within 180 days at the latest from the actual date of issue.


With the Communiqué No. 2019-32 / 56 on the Amendment of the Communiqué, the requirement to convert at least 80% of the export price into Turkish Lira as of 31.12.2019 was abolished. Accordingly, it is sufficient to bring the export prices to the country within the specified period, but THERE IS NO OBLIGATION TO BE CONVERTED INTO TURKISH LIRA.


An "Export Value Acceptance Certificate" attached to the Communiqué stating that the said amounts are brought to the country by banks must be issued.


THE PERIOD OF BRINGING TO THE COUNTRY FOR SPECIAL EXPORT

  • In some cases, which are characteristic of bringing export prices to the country, the period of bringing them to the country may differ;
  • 365 days for export to be made by contractor companies,
  • 180 days following the final sale for export to be made by consignment,
  • In the sales made in international fairs, exhibitions and weeks; 180 days following the end of the fair, exhibition and weeks,
  • 90 days following the maturity dates specified in the credit sales or leasing contract of the export price in exports made by credit or leasing within the framework of the current Export Regime and Financial Leasing Legislation,
  • If a maturity of more than 180 days from the actual date of issuance is foreseen for the collection of the prices in the contracts for export transactions, the export prices must be brought to the country within 90 days from the end of the term.

METHODS OF PAYMENT REGARDING DOMESTIC FEES FOR EXPORT PROCESSES

According to the Communiqué, export fees can be brought to the country with the following payment methods;

  • Letter of Credit,
  • Payment Against Documents,
  • Payment Against Goods,
  • Letter of Credit Payment with Acceptance Credit,
  • Payment Against Documents with Acceptance Credit,
  • Payment Against Goods with Acceptance Credit,
  • Advance Payment

"BPO PROCEDURE" IS REMOVED IN EXPORT PROCEDURES

The Bank Payment Obligation (BPO) has been abolished as of 28.08.2020 with the Communiqué No. 2020-32 / 58 on Making Amendments to the Communiqué.


BRINGING THE EXPORT PRICE AS CASH WITH THE PASSENGER

  • In accordance with the Clause 4 of the 3rd Article of the Communiqué, the export fee can be brought with the passenger without any limitation.
  • The amount brought with the passenger MUST BE DECLARED TO THE CUSTOMS ADMINISTRATION.

RESPONSIBILITY OF DELIVERY OF EXPORT COSTS TO THE COUNTRY

According to Article 6 of the Communiqué, exporters are responsible for bringing the exported goods to the country on time and closing the export account on time.


What should be generally understood from the closing of export accounts is that the foreign currency with the export price is brought to the country within the specified period from the actual date of issue, an Export Value Acceptance Certificate is issued and the export account is closed at the intermediary bank. If it is not closed within the period, the cancellation process is made by certain institutions within the scope of the authority granted by law.


In case the commercial risk is borne by banks or factoring companies by purchasing the receivable right, the Ministry of Treasury and Finance is authorized to determine those responsible for bringing the export price to the country.


Banks mediating exports are only obliged to monitor the bringing of export prices to the country.

 

CAN THE PAYMENT SERVICE PROVIDERS DO THE COLLECTION OF THE EXPORT FEE?

Export fees can also be brought to the country through payment service providers specified in Article 13 of Law No. 6493 on Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions. In accordance with this Law;

  • Banks covered by Law No. 5411,
  • Electronic money institutions,
  • Payment institutions,
  • As a payment service provider, Postal and Telegraph Service may mediate in bringing export fees.

FORCE MAJEURE REGULATION

The force majeure regulation entered into force as of 31.12.2019 with the Communiqué No. 2019-32 / 56 on Amendment to the Communiqué. In these cases, additional periods are allowed for the entry of the export price into the country. Force majeure situations are listed one by one in the 9th article of the Communiqué;

  • The dissolution, bankruptcy, concordat of the importer or exporter firm or the permanent suspension of its activities, the decision of postponing the bankruptcy for the company, the death of the owner of the company in private companies, (this situation must be proven with a document to be obtained from the competent authorities.)
  • Strike, lockout and average situation (this situation must be proven with a document to be obtained from the buyer or importer companies, provided that it is approved by the official authorities of the country where the importer is located or by the local chamber.)
  • It becomes impossible to close the accounts due to the decisions and transactions of the exporter or importer country official authorities or the transactions of the correspondent banks.
  • Natural disaster, war and blockade situation, (This situation must be proved with a document to be obtained from the buyer or importer companies, provided that it is approved by the official authorities of the country where the importer is located or by the local chamber.)
  • Loss, damage or destruction of the goods, (This situation must be proven with a document to be obtained from insurance companies, international surveillance companies or official authorities of the relevant country.)
  • Litigation or arbitration due to dispute. (This situation must be proved with a document to be obtained from the competent authorities.)

"JUSTICE CAUSES" EXCEPT FOR FORCE MAJEURE

Except for cases of force majeure, but preventing the export price to be brought to the country within the period of bringing the price and that can be certified with official records, the Tax Office Presidencies or Directorates can be considered justified.

 

APPLICATION OF LEAVE, FORCE MAJEURE AND JUSTICE

According to the Communiqué, there are three cases in favor of exporters in the event that there is a lack of amount in bringing the export prices to the country or if the export prices are not brought at all within the specified periods; Abandonment, Force Majeure and Just Cause.


By BANKS

  • Open accounts up to $ 30,000 (included) in export transactions up to $ 300,000 or equivalent on the basis of each customs declaration, within the period when the export fees should be brought to the country, regardless of the form of payment
  • Deficits of up to 10% of the declarations in export transactions up to or equal to USD 1,000,000 per customs declaration (which corresponds to open accounts up to USD 100,000 (inclusive)),

It is closed by LEAVING.


By the TAX OFFICE

  • Existing export accounts in case the export costs are brought within the above-mentioned limits, provided that the export costs are brought to the country only within the 90-day notice period granted to the exporters by the Tax Office,
  • Considering Force Majeure and Justifications, in customs declarations up to USD 2,000,000 or equivalent, deficits up to 10% of the declarations (which corresponds to open accounts up to USD 200,000 (inclusive)),

It is closed by LEAVING.

The Ministry of Treasury and Finance has been authorized to close the open export accounts over USD 200,000 by DEPARTURE, taking into account the FORCE CAUSE and JUSTICE STATUS.


Intermediary banks must notify the Tax Office or Directorate within 5 business days of accounts that are not closed within due time.


Within 10 business days following the notification made by the banks by the Tax Office, a 90-day notice is sent to the concerned parties to close their accounts.


Within this period, there is an obligation to close accounts or document force majeure or justified situations.


If there is a force majeure situation, during the continuation of the force majeure, additional time is given by the Tax Office for periods of up to 24 months, in periods of six months.


Requests after 24 months for force majeure and 6 months for justified cases must be examined and concluded by the Ministry of Treasury and Finance.

 

EXPORTS TO COUNTRIES THAT CANNOT MAKE DIRECT TRANSFER WITH THE BANKING SYSTEM

Since Iran, Syria and Lebanon countries are excluded from the scope of this Communiqué by the Export Circular, they are not bound by the conditions stated here.


In the export transactions made to Afghanistan, Iraq and Libya where it is not possible to transfer the export prices directly to our country through the banking system (without prejudice to the provisions of the legislation regarding money laundering and terrorist financing), the collection of the export price by the banks;


Importer via transfer from an account with a bank in Turkey or

By transferring the export price from a third country through banks, provided that it is related to the export transaction, or


In addition to the written declaration of the exporter, depending on the nature of the transaction, the sales contract or the final sales invoice (or pro forma invoice) and the Cash Declaration Form (NBF), provided that GB is submitted, effectively


For the amounts brought in cash in foreign currency, it is possible to be made effectively without calling NBF, provided that the sales contract or the final sales invoice (or pro forma invoice) is submitted according to the nature of the transaction, as well as the written declaration of the exporter.


Other countries where it is not possible to transfer export prices directly to our country through the banking system are determined by the Ministry of Treasury and Finance.

 

SANCTIONS

Article 3 of the Law No. 1567 on the Protection of the Value of Turkish Currency. Accordingly, the person who violates the obligations is punished with an administrative fine from three thousand Turkish Liras to twenty five thousand Turkish Liras.


Those who do not bring the export price to the country within the periods specified in the Communiqué are punished with an administrative fine of 5 percent of the current value of the assets they are obliged to bring to the country.


Those who engage in fictitious transactions with the intention of smuggling foreign currency or Turkish Lira in import, export and other foreign exchange transactions are punished with an administrative fine equal to the current value of the assets they are obliged to bring or miss. If this action remains in the attempted phase, the penalty to be imposed is reduced by half.

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