SECTION TWO

Movement of Goods in and out of the Zone

Goods Prohibited in the Zone or Goods Requiring Special Arrangement / Construction

Article 32-(Amended with the Official Journal No. 24335 and dated 27.03.2001)

The entry of the fire arms and their ammunition, radioactive substances, dangerous and toxic wastes to the Zones is prohibited.

Inflammables, explosives, combustibles, fire-inducing substances or materials which are dangerous to other substances when put all together, can only be brought into the Zones on the condition that there is a special arrangement or construction serving for that purpose in that Zone.

The movement of narcotic substances, psychotrop substances and the related chemical substances, and their preparations in and out of the Zone are subject to the provisions of the national and international laws carried out by the Ministry of Health.

The Movement of Goods in and out of the Zone

Article 33- Methods and principles concerning the movement of goods in and out of the zone are governed by the circulars/directives issued by the General Directorate.

Flow of Goods Between the Zone and Other Destinations

Article 34- Goods that are addressed to the Zone but have for one reason or another been unloaded at a place outside the Zone or goods not addressed to the Zone but unloaded within the boundaries of the Zone will be sent to their destinations in the most speedy way under the supervision and control of the Customs Administration. Goods addressed to the Free Zone will be conveyed to the Zone within the shortest time possible. However, in cases where goods addressed to the Zone, arrive at the Zone but are then stored at the Customs’ warehouse or at any other place due to the lack of place, provisions related to the Free Zones shall apply to such goods if they are sold in Turkey under provisional acceptance or enter Turkey through any other means or are absent abroad. This practice shall be halted as soon as the Zone depots prove to be sufficient.

The Customs Administration may grant permission for the temporary entry into the Zone of the equipment and machinery required for loading, unloading, transport etc. of goods in the Zone upon a written request from the Zone Directorate provided that this operation is recorded in the “Entry-Exit Register” maintained by the Customs Directorate.

In cases where the Zone does not have access to a quay or where despite the existence of a port in the Zone, goods addressed to the Zone or leaving the Zone for other destinations, are transported by sea from or to another port in the vicinity of the Free Zone, the conveyance of the goods shall be by direct delivery from the ship to the Zone or from the Zone to the ship in the presence of an official commissioned by the Customs Administration on the basis of a “Free Zone Procedure Form” drawn up and registered by the Zone Directorate and also registered bt the Free Zone Customs Directorate, without any need for a “Transit Declaration Form”. The corridor between the Zone and the place where the ship is located is deemed to fall within the Free Zone. The movement of goods between sections of the Zone which are physically separated from one another is to take place under the supervision of the Customs Administration.

Where dangerous substances are moved into out of Zones located within or in the vicinity of an airport, the Z.F.O. or the Operator shall ensure that these are taken to the airport in special containers and coordinate the Airport and Customs authorities to ensure that they are safely transported to the Zone aircraft, without being kept waiting on the apron, vehicles that shall be available at the airport.

Sale or Transfer of Goods

Article 35- Users in the Zone may sell their goods to Turkey or abroad on a wholesale basis.

Users and companies which have rented depots in the Zone may sell or transfer their goods wholesale to other users in the same Zone on condition that they notify the Zone Directorate in writing.

Responsibility for Goods in the Zone

Article 36- Users engaged in operations in the Zone are responsible to the Zone Directorate for losses and shortages in quantity, kind and weight and for changes in the quality of their goods. They may only be releived of this responsibility if they prove that the loss or shortage is inherent to the goods or due to force majeure circumstances.

Should a shortage arise beyond that attributable to wastage normal procedures and natural wear or should there be an unexplainable excess of any concerning goods in the Zone, the user, Z.F.O. or Operator shall inform the Zone Directorate of the situation in writing and shall fulfill its related obligations.

The Goods and Wastes That Must be Destroyed

Article 37- (Amended with the Official Journal No. 25153 and dated 29.06.2003)

In cases when the Zone Directorate determines that; the goods must be removed from the Zone for being; expired, obsolete, spoiled, decayed etc. or harmful to the goods of other users or detrimental to general health and hygiene rules, the Committee headed by the Zone Director, composed of officials from the Directorates of Customs and Customs Enforcement, Ministry of Environment and Forestry and Operator/ZFO and when required one expert on the goods concerned appointed by the Zone Directorate shall decide to the destruction of the abovementioned goods, in or out of the Zone.

The Zone Directorate shall call on the user by a written notification to destroy the concerned goods. The destruction should start to be executed within 24 hours of the notification essentially.

Should the user fail to begin work to this end, the Operator or ZFO shall execute the destruction. All costs shall be borne by the user. If the user does not pay these costs the commercial transactions of the user shall not be put into operation in conformity with the Article 14.

In case of lacking a suitable place for destruction, the concerned goods, after being checked by the officials from the Customs Administration, shall be handed over to the public or private officials responsible for cleaning services by the Operator or ZFO, under the supervision of the Customs Administration. The goods that are destroyed shall be erased from the registers of the user.

The Committee headed by the Zone Director, composed of officials from the Directorates of Customs and Customs Enforcement, Ministry of Environment and Forestry and Operator/ZFO shall decide to the removal of the zone activity related wastes, out of the zone. The containers, packing materials, scraps, household waste residuals and wastes that are found appropriate to remove shall be handed over to the public or private officials responsible for cleaning services by the Operator or ZFO. If these officials demand any fees, the costs shall be borne by the concerned users. If it is found necessary to destroy these materials, the destruction shall be executed within the framework of the principles and procedures specified above.

The hazardous wastes shall be subject to the disposal procedures in compliance with the principles specified in the Regulation on the Control of the Hazardous Wastes

Abandoned and Scattered Goods

Article 38- Goods that have been left or abandoned on parcels of land that do not belong to any user will be cleared by the Operator or the Z.F.O. acting under the supervision and control of the Zone Directorate, entered in the register to be kept for this purpose and sold off in accordance with Article 52 of the Regulation.

Goods spilt during loading, unloading, haulage or other operations and scattered goods left over after re-packing will be handed over to their owners by the Operator or the Z.F.O. only if the costs of their collection, sweeping up and re-packing are borne by the user. Otherwise, they will be treated as abandoned goods.

Damaged Goods

Article 39- Goods on their way into or out the Zone or being processed within the Zone that are discovered to have damaged packaging or are suspected of having been tampered with shall be classified, counted or weighed and re-packed by a Commission established by the Zone Directorate and composed of the person or the officials of the agency, loading and unloading services of the Operator or the Z.F.O., the captain of the vessel and officials of the transportation agency or their representatives. The insurer or a representative of the insurer of the goods may also participate in the Commission. The Commission will produce a report on the situation and communicate its findings to the Zone Directorate. The report will state whether there exists any surplus or shortage of the goods. Depending on the kind of discrepancy, the captain of the vessel, the shipping agency, the transportation agency or the user will be held responsible according to the Article 36 of the Regulation. Goods the owners of which cannot be identified are treated as abandonned goods and become subject to the provisions of Article 38.