SECTION THREE

Maintaining Order and Security in the Zone and Working Conditions

Security

Article 16- Zone Directors shall have to communicate their requests concerning security in the Zone to the relevant governorates. The Governors are responsible for taking special measures for the provision of security of the zones by commissionning an adequate number of police and customs officers at the entrance and exit gates and borders of the zone.

Users shall also be obliged to employ a sufficient number of security guards and to keep the Zone Directorate informed about at least one of these people.

Working Conditions

Article 17- Users, their work premises in the Zone and employees in these workplaces are subject to the Labour Legislation of the Republic of Turkey under the supervision and control of the Zone Directorates.

The principles governing the minimum wage and the payment of overtime in workplaces within the terrirory of Turkey shall also apply in to the workplaces of the Z.F.O. or the Operator and of users in the Zone.

Labour Contracts concluded between employers and employees in the Zone are to be produced in three copies, one of which is to be submitted to the Zone Directorate.

Principles for the manner and procedures by which this article is to be inforced will be given in directives/circulars issued by the General Directorate.

Work Permits for Foreigners

Article 18- Users shall apply directly to the Zone Directorate or the General Directorate to obtain “Work Permits” for foreign managers and qualified personnel that they need to employ in the Zone.

The application shall be made by filling in and signing the printed forms prepared for obtaining a “Work Permit” and their attachments.

The application will be assessed by the General Directorate in coordination with the relevant authorities and a “Work Permit” will be granted where found appropriate. Users are jointly responsible for the actions and behaviour of their employees within the zone and for any harm that they may inflict on third parties or to the zone during the course of their work.

Residence Permit/ Night Work Permit

Article 19- Residence in the Zone is prohibited. However, for security considerations, Residence Permit/ Night Work permits may be issued by the Zone Directorate, which must keep the security and customs administration informed of this in writing to the security and customs officers and security guards who are charged with the control and security of the zone, to those who have to reside in the Zone due to the specific nature of their jobs and to those who have to work overnight following the workday in the Zone. The residence / Night Work permit granted for the zone is restricted and is valid only for the individuals described here. In no way or manner does this permit cover the relatives or families of the said officials.

Residence / Night Work Permits shall be annulled by the Zone Directorate with immediate effect in the event of the annulment of the corresponding “Operation Licence”, “Entry Permit” or “Service Card” .

Arrangements concerning the issue of residence permits for reasons other than those mentioned above may only be made by the Ministry to which the Undersecretariat is affiliated.

Working Hours and Control of Entries and Exits

Article 20- Business may be conducted in the Zone 24 hours a day and 7 days a week. However, in principle, the work carried out in the Zone, loading and unloading and all kinds of Customs procedures are to be performed during official working hours. Where a written request is made for the performance outside the official working hours or during holidays, of work related to Customs, permission to carry out the work may be granted following the approval of the Zone Directorate, the consent of the Customs Administration and deposing of the sum of overtime work.

Persons seeking at the gates of the Zone should be able to present an “Entry Permit” or “Service Card” or “Special Entry Permit” on the request of the Customs and Security Officers. Anyone unable to present one of these documents shall be denied entry to the Zone.

In order to prevent goods entering or leaving the zone without customs formalities, vehicles and persons may be searched at the gates of the zone by Customs officers if necessary. The workplaces and vehicles of the users may also be searched upon the request of the Zone Directorate.

Social Security and Social Welfare Principles

Article 21- The social security legislation of the Republic of Turkey shall apply both to users operating in the zone and to employees- including foreign nationals- who are in service under a labour contract. However, in cases when there is an agreement between Turkey and any other country regarding social security, the provisions of such agreement shall also apply. Social insurance payments to the Social Security Organizations are payable in either foreign currency or Turkish Liras. Social security payments to the beneficiaries will be made by these organizations in Turkish Liras.

Competent Authority for Communal Services in the Zone

Article 22- Users operating in the zone and those supplying them with auxiliary services will apply to the competent officers of the Z.F.O. or Operator for the provision of paid services such as electricity, gas and fuel supplies, communication services, transportation and public transport, the cleaning of workplaces or their surrounds the overcoming of cleaning difficulties and the solution of health problems, and for the provision of services such as first aid and ambulances in the event of industrial accidents and illness.

The Zone Directorate will keep a watching brief on these services to ensure that they are provided in a proper and satisfactory manner and will issue written cautionary instructions.

Keeping Books and Records

Article 23- With a view to governing operations in the Zone in an orderly manner, the Z.F.O. or the Operator and the users are required to maintain their statutory books in Turkish, to supply information and documents requested by the competent authorities and officers duly authorized by the Zone Directorate and the General Directorate in a timely manner and to keep their books, records and other documents available for inspection by these authorities. In no way or by no means may they enter into their accountancy records any accounts concerning activities carried out outside the Zone.

The Operator or Z.F.O. and the users are obliged to use the special invoices specified by the General Directorate. The Operator or Z.F.O. and users may use their own invoices and commercial books after having them approved by the Zone Directorate prior to the beginning of the accounting year.