PART ONE

GENERAL PROVISIONS

SECTION ONE

Objectives, Scope, Legal Basis, Abbreviations and Definitions

Objectives

Article 1- The objective of the present Regulation is to set out principles pertaining to the establishment, administration and management of the Free Zones and the collection of revenues and making of expenditures for and from the “Free Zones Establishment and Development Fund”, founded in accordance with the Article 7 of the said Law, together with other matters related to the said Fund.

Scope

Article 2- In pursuance of the objective mentioned in Article 1, the present regulation covers:

a) points related to the governing and management of the Free Zones,

b) principles which activities involving the Free Zones will be subject to,

c) the granting or annulment of operation licences and keeping of industrial and commercial registers,

d) the questions of entry into and exit from the free zone and residence in the zone,

e) working principles in the free zone,

f) principles to govern payments to the Fund, the collection of revenues and expenses to be made   from the Fund.

Within this context, the Undersecretariat for Foreign Trade may issue circulars/directives with a view to ensuring that the terms of the present Regulation are applied in practice.

Legal Basis

Article 3- The present regulation has been prepared in accordance with Law No. 3274 on the Organization and Functions of the Undersecretariat for Foreign Trade and with Articles 7 and 13 of Law No. 3218 on Free Zones.

Abbreviations and Definitions

Article 4- The following abbreviations and definitions shall have the meanings stated here when used in the present regulation:

a).The Ministry: the Ministry to which the Undersecretariat for Foreign Trade is affiliated.

b).U.F.T.: The Undersecretariat for Foreign Trade.

c).General Directorate: The General Directorate of Free Zones.

d).Zone Directorate: The Free Zone Directorate.

e).Zone Founder: The organization which provides the infrastructure in cases when the infrastructure of the Free Zone is provided by a domestic or foreign private sector company or by the public sector.

f).Operator: the institution or agency which operates the zone in cases when the Free Zone is operated by a domestic or foreign private sector company or by the public sector.

g).Z.F.O.- Zone Founder and Operator: The agency which develops and operates the Free Zone, in cases when the Free Zone is developed and operated by the private sector.

h).Fund: Free Zone Establishment and Development Fund.

i).Operation Licence: The Licence permitting one to engage in activities in a Free Zone.

j).Open Space Use Permit: A permit allowing the use of open space in the Free Zone for a restricted period.

k).Entry Permit: The document giving entry to the Free Zone.

l).Special Entry Permit: The special document giving entry into the Free Zones temporarily for the purposes of meetings, visits and the like.

m).Zone: The Free Zone the location and borders of which have been determined by a Decree of the Council of Ministers.

n).User: A real or legal person in possession of an Operation Licence having a definite workplace in the Free Zone.

o).Tariff: The fees to be paid by real or legal persons operating in the Free Zone for the space and services provided.

p).Foreign Currency: All kinds of accounts, documents and instruments securing payment in foreign currencies, including cash, dealt in by the Central Bank of Turkey.

r).Law: Law number 3218 on Free Zones.

s).Regulation: The Free Zone Governing Regulation.