The entry into and exit from a zone of transit/trans-shipped goods is subject to the permission of the Zone Directorate.

An article is regarded as being in transit in the zone when it is transmitted from a foreign country to another one or from a foreign country to Turkey through the zone. The article which passes/is conveyed through the zone does not cease to be considered to be in transit if it is trans-shipped, unloaded or kept in the zone for any certain length of time.

The conveyance by sea of an article which has been brought from a foreign country to the port of the Free Zone via sea, air, rail or road, to a port outside the country or in another Free Zone is considered to constitute trans-shipment.

SECTION TWO
Movement Of Goods In And Out Of The Zone

Goods Prohibited in the Zone or Goods Requiring Special Arrangement/Construction
ARTICLE 32 ***- 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 Directorate General.

Flow Of Goods Between The Zone And Other Destinations
ARTICLE 34 - Goods that are addressed to a 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 are sent to their destinations in the most speedy way under the supervision and control of the Customs Administration, Goods addressed to the Free Zone are conveyed to the zone within the shortest time possible. However if goods addressed to a zone, arrive at the Zone but are then stored at the customs warehouse or at any other place due to lack space, provisions related to the Free Zones apply to such goods given that they are sold in Turkey under provisional acceptance or enter Turkey through any other means or are sent abroad. This practice is halted as soon as the Zone depots prove to be sufficient.

The Customs Administration may grant permission for the temporary entry into a zone of 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.

Where a 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 is 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 by 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 considered 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 ZFO or the Operator must ensure that these are taken to the airport in special containers and must coordinate with the Airport and Customs authorities to ensure that they are safely transported to the Zone aircraft, without being kept waiting on the apron, by vehicles that are made 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 the condition that they notify the Zone Directorate in writing.

Responsibility For Goods In The Zone
ARTICLE 36 - Users engaged in operations in a 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 relieved of this responsibility if they prove that the loss or shortage is inherent to the goods or due to force majeure circumstances.

If a shortage arises beyond that which is attributable to wastage, to normal procedures or natural wear and tear, or if there is an unexplainable excess of any concerning goods in the zone, the user, Operator or ZFO must inform the Zone Directorate of the situation in writing and fulfill all related obligations.

The Goods and Wastes that Must be Destroyed
ARTICLE 37 *****- 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 are left behind or abandoned on parcels of land that do not belong to any user are cleared by the Operator or the ZFO 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 divided and scattered during loading, unloading, haulage or other operations and left over after re-packing are handed over to their owners by the Operator or the ZFO only if the costs of their collection, sweeping up and re-packing are covered by the user. Otherwise, they are treated as abandoned goods.

Damaged Goods
ARTICLE 39 - Goods on their way into or out of the zone or being processed within the zone that are discovered to have damaged packaging or are suspected of having been tampered with are 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 to the Operator or the ZFO, 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 prepares a report on the situation and communicates its findings to the Zone Directorate. The report states 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 are held responsible according to Article 36 of the Regulation. Goods the owners of which cannot be identified are treated as abandoned goods and become subject to provisions of Article 38.

PART FOUR
SPECIAL ACCOUNT AND SPECIAL ALLOWANCE, FREE ZONE REVENUES, RENTAL CONTRACTS
SECTION ONE

Special Account
ARTICLE 40 ****- Summary accounts are opened in Turkish Lira and US Dollars or in other convertible currencies by UFT with the Central Bank of the Republic of Turkey in the names of Directorate General and each Zone Directorate for the revenues of the Special Account. In addition, Directorate General and the Zone Directorates must open sub-accounts (or temporary accounts if necessary) for each revenue item related to special account, which are in Turkish Lira and in US Dollars or other convertible foreign currencies with any bank with the priority given to public banks -in case there is no bank in the Zone, with the banks closest to the Zone.

After the income share transfers to the operators or ZFOs in accordance with the contracts, the remaining amount from the collections is transferred by the banks in the Zones to the accounts with the Central Bank of the Republic of Turkey within 5 working days. After deducting the reimbursements 1- of the operating license application fees upon the instruction of Directorate General, 2- of rents, and 3- of special account revenues that are found out to be overpaid; Central Bank of the Republic of Turkey transfers the remaining amounts (after converting into Turkish Lira if the revenue is in foreign currency) to the account of the Main Treasurer’s Office, which is in charge of the central payments of UFT, by the end of every week. Central Bank of the Republic of Turkey transmits financial tables regarding the Special Account to the UFT on a monthly basis.

90 percent of the amount of money deposited to the account of the Main Treasurers Office is registered into the general budget as revenue and remaining 10 percent is registered as Special Revenue into the general budget in order to be used in establishment of free zones, maintenance and repair, conducting training and research activities and supporting foreign trade. The amounts recorded as Special Revenue are allocated by Ministry of Finance as Special Allowance in the sub-accounts that will be opened in the budget of UFT. This recorded Special Allowance is utilized in current, investment and transfer expenditures. The Ministry of Finance is authorized to register the amount not spent during the year as Special Revenue and Allowance to the following year’s budget.

Free Zones Revenues and Conditions Free of Collection
ARTICLE 41 ****- Special Account revenues consist of the following items:

a) Fees for licenses and permits specified by the Directorate General in conformity with Article 11,
1) The Operating License Application Fees payable by those applying for an Operating License to the Directorate General,
2) Fees to be paid for renewal of Operating License in case of loss, worn-out or other reasons,
3) Fees to be paid for applications to the Zone Directorates in order to obtain open area using license,
4) Fees which will be charged for applications to the Zone Directorates in order to obtain warehouse using permit,
5) Fees to be paid for granting of annual entry permits and for renewal of annual and special entry permits in case of their loss, are deposited to the special account in advance.

b) Fees to be paid in the amount of 0,5 % for the goods entering and leaving the zones,
1) Fees to be paid in the amount of 0,5 % on the CIF values of goods which are entering the zones from abroad,
2) Fees to be paid in the amount of 0,5 % on the CIF values of goods which are leaving the Zones towards Turkey,
3) Fees to be paid in the amount of 0,5 % on the value added arising from the services of maintenance and repair of the goods that are brought into the zone temporarily and are not owned by the users,
4) Fees to be paid at the time of final exit in the amount of 0,5 % on the value added,
- in the zone for goods, which are not owned by the users but brought into the zone temporarily for outsourced material processing and sent after being processed and
- in Turkey for goods sent to Turkey for further processing and brought back into the zone,
5) Fees to be paid in the amount of 0.5 % on the CIF value of the following goods that are not taken out of the Zone in the period specified in Article 58: - Goods which are not owned by the users, but that are brought temporarily into the zone from abroad for maintenance and repairing purposes, - and tools, materials, and equipments that are brought into the zone temporarily from abroad for the purposes of maintenance or repair of buildings, establishments and inventories,
6) The liquidated guarantees that are taken in conformity with article 58/(2) in the amount of 0,5 % on the book values of the inventories and investment goods that are owned by the users and sent to Turkey for the purpose of maintenance and repairing, but that are not brought back into the Zone within 12 months,
7) The liquidated guarantees that are taken in conformity with article 58/(2) in the amount of 0,5 % on the CIF values of the goods that are sent to Turkey temporarily to be exhibited, to be displayed in fairs or to be processed and the goods that are bought from Turkey and sent back to be changed or to be processed for not being in conformity with the order or the quality, but that are not brought back into the Zone within 12 months, shall be deposited to the special account in advance.

c) Collection of revenues in accordance with contracts signed with real persons or legal entities, which operate the free zones:
1) Profit shares, as specified in the contracts, are taken from annual net profits of the operators, by calculating the amount in foreign exchange buying rate at the end of the year in terms of USA Dollar, by the last workday of the fifth month of the following year,
2) Contributions levied on the Operator or ZFO in the amount of 4% of their net monthly revenue arising from their operation, or establishment and operation activities, by the end of the office hours of the 20th day of the following month,
3) In the free zones established on the land owned by the Treasury, in case the open areas are leased to the real or legal entities that are approved to be granted operating licenses, lease revenues are collected by the operators or ZFOs in the prescribed periods of the lease contracts made according to the Article 8. By the operators 90% of the collected lease revenues, by the ZFOS 63% of the collected lease revenues, within the periods specified in the operation, or establishment and operation contracts,
4) In case, the buildings and facilities owned by the Treasury or the buildings and facilities transferred to the Treasury as a result of the expiration or cancellation of the operating license, are leased by the operator or ZFO, 90% of the collected rent revenues within the specified periods in the operation or establishment and operation contracts.
5) In the free zones established on private property, 4% of the monthly income accrued through the revenues from the land and office rentals by the ZFO’s and 4% of the net monthly income accrued through the sales of the land and offices by the ZFO’s, by the end of the working day of the 20th day of the following month,
6) The penalties, costs and interests to be collected in case when the Operators, ZFOs, or users do not fulfill their obligations in due time specified in the contracts or do not fulfill them at all in violation of the Contracts and provisions of the Regulation, following the collection, are transferred to the special account.

d) Other revenues specified in the Law, Article 7 (d):
1) Fees to be paid in advance in the amount of 0,5% on the values that are declared by the users in the invoices prepared for their service activities,
2) Fees to be paid in the amount of 0.5% by banks and insurance companies in quarterly periods, on their revenues arising from their activities- the amount accrued on their behalf in cash or on account as a result of their transactions - till the end of the office hours of the 20th of January, April, July and October,
3) Entire amount of the rent revenue from the buildings and lands leased to users by the zone directorate,
4) Revenues arising from the sale of movable goods that are transferred to the Treasury by any reason and from temporary transfer of rights to use of the real estates,
5) Price of every type of publications or papers which are published by the Directorate General or the Zone Directorates and are decided to be sold by the Directorate General or the Zone Directorates,
6) Penalties, costs and interests specified in contracts for buying and selling,
7) Fees that are paid, if the applications to the Directorate General to obtain an operating license is withdrawn within 30 days from the approval letter of the Directorate General. are transferred to the special account.

The Zone Directorates shall not ever collect these revenues in cash register. The revenue collection will be made through the accounts opened with the banks.
In the following cases, collection to the special account is not performed:
1) On the goods brought into the zone from Turkey, on the goods sent to abroad from the zone, on the sales within the zone, on the goods sent from the zone for destruction and liquidation, and on the goods sent from the zone or brought into the zone with no cost, for analyzing and for sampling, on the goods used during the investment period, on the goods brought for renovation and capacity raising purposes, 0.5 % payment is not paid.
% 0,5 payment is not levied on the goods which are not owned by the users, but that are brought temporarily into the zone for maintenance and repairing purposes, on the tools, materials, and equipments that are brought into the zone temporarily for the purposes of maintenance or repair of buildings, establishments and inventories, and on the goods that are brought into the zone for the purpose of outsourced material processing, reserving paragraph (b) sub-paragraphs (3) and (4) of this Article,

Completion of the construction of closed area, making additional investment, the entry of investment goods which will be used in production by the users bearing an operating license on production, the entry of goods for the renewal of machinery and equipment, or the entry of new machinery, equipment and office machinery for capacity raising are considered as the entry of goods during the investment period. Zone Directorates control whether the entry of goods are within the investment period.
2) With the condition of obtaining an operating license and keeping separate accounting books, Operator or ZFO do not make any payment to the Special Account, from their revenues arising from the lease of the buildings and facilities constructed by them or on behalf of them on the land owned by the Treasury, and from their revenues arising from being a partner of an enterprise engaged in activities that are deemed to be performed in the Zone.
3) 0,5 percent is not levied on the goods that are sold from the Zone to abroad but returned for any reason, or the goods brought into the Free Zone from abroad but sent back to the origin country to be changed or to be repaired because of not being in conformity with the specifications or being defective.

Reimbursement of Special Account Revenues
ARTICLE 42 ****- Special account revenues that are collected are reimbursed under conditions specified below:

a) Entire fee that is paid, if granting an operating license is not approved by the Directorate General after the evaluation or if the application is withdrawn by the firm before the approval letter of Directorate General,
b) Entire fee that is paid, in case of withdrawal of the application for the operating license within 30 days after the approval letter of Directorate General, following the payment of the fee which is specified in Article 41/d-7 to the Special Account,
c) In case of abolishment of the lease contract due to the cancellation of the operating license, the amount which must be reimbursed from the rental fee that was paid in advance by the users,
d) Special Account Revenues that are found to be overpaid, within 1 year beginning from the start of the revenue generating event, are reimbursed.

Pursuit and Collection of the Special Account Revenues
ARTICLE 43 ****- Special Account Revenues are pursued and collected according to the Law regarding Procedure of Collection of Public Receivables Nr. 6183 in accordance with the following principles:

a) In case it is detected within three years that the due payment to the Special Account is not made by the user or operator/founder-operator company within the period mentioned in article 41 or a deficient payment is made, the Zone Directorate sends a notification about the unpaid or deficient amount and demands the payment of this amount within a month from the parties concerned.
b) The parties concerned may object to the notification within the mentioned period. However the pursuit is not stopped with the objection to the notification.
c) Objections made within a month from the date of notification are assessed and concluded by the Zone Directorate or the Directorate General within this period.
d) In case of no payment or deficient payment to the Special Account within a month from the date of notification, the Zone Directorate notifies the local tax office for the pursuit and collection of the unpaid amount.
e) In the notification submitted to the tax office;

- The date of notification for the collection of receivables, principle and sub-divisional receivables and penalties are stated separately.
- The Zone Directorate, after endorsing, sends a copy of identity card (for real persons) or passport (for foreign persons) or Turkish Trade Register Gazette (for legal persons).
Special Account revenues that are collected by the operator/founder-operator companies in accordance with the operating/founding-operating contracts but not transferred to the Special Account within the periods mentioned in these contracts are also pursued and collected within the context of abovementioned principles.

Income and Expenditure Program
ARTICLE 44 ****- Zone Directorates submit their program proposals on revenue and expenditure estimates for the following year to the Directorate General every year by the end of May latest. The plan and program, which consists of Directorate General’s revenue estimates and the expenditure proposals from the Special Allowance and revised proposals of the Zone Directorates, are submitted to the approval of the Minister to which the UFT is subordinated. A copy of this program is sent to the Ministry of Finance. The appropriations are spent within the framework of this program. Any change made within the year in the appropriations of the Directorate General and Zone Directorates becomes effective upon the approval of Directorate General. Directorate General is authorized to make any transfer or change in this program within a year.

Principles of Expenditure from the Special Allowance
ARTICLE 45 ****- For the purpose of establishment, repair and maintenance, and development of free zones, realization of research and development activities and supporting foreign trade, the amount registered as the Special Allowance is spent within the framework of the provisions of the General Accounting Law No: 1050, State Bidding Law No: 2886 and State Expenditure Documents Regulation, for the following:

a) Personnel allowances,
b) Service payments and rents,
c) Purchase of consumption goods and materials,
d) Purchase of office stock,
e) Purchase of machinery, equipments and important repair of these machinery and equipments,
f) Purchase of vehicles,
g) Expenditures for building, establishment and important repair costs,
h) Other payments,
i) Transfers,
j) Payments for the lunch costs of the personnel at the Zone Directorates,
k) Annual membership fee for WEPZA-World Export Processing Zones Association,
l) Construction of infrastructure and superstructure and purchase of services required by the Operation Contracts or protocols concluded with the operator/founder and operator companies.
m) Ordering or purchasing of Free Zones Application Program software, revision, license and maintenance expenditures of this program,
n) Any other expenditures that are in conformity with the objectives of the Law and that are approved by the Minister to whom UFT is subordinated,
Accountancy operations on the expenditures are made by the local Treasurers Offices where Free Zones are established and Main Treasurers Office, which is in charge of the central payments of UFT.

SECTION TWO
Rental Rates and Lease Contracts

Rental Tariffs and Special Conditions That Should Be Specified In Lease Contracts
ARTICLE 46 ****- Directorate General is authorized to approve, increase, decrease, or to make installments on the rental tariffs proposed by the operator or ZFO in Free Zones or to make alterations on the existing tariffs.

a) Rental contracts may not be conducted for periods longer than that indicated in the Operating License given to the user beforehand. Rent contracts are abolished when the parties send notices of cancellation to each other upon the expiry or cancellation of the Operation License. In such event, rent for the operational period, cost of necessary repairs and other costs are deducted from the amount of security specified in the rent contract and the rest is paid back to the user. If the user turns out to be indebted, necessary legal measures are taken against him for the compensation of repairs or other costs. If the user does not take his goods and belongings away with him within one month following abolishment, these goods and belongings are liquidated.
b) Any real estate such as buildings, hangers, warehouses, depots, and facilities constructed on the rented plot by the user, excluding the movables, become the property of the Treasury upon the expiry of the term of the Operating License.
c) At the expiry of the Operating License and the contract, if the ZFO wishes to re-rent to the same user the plot and the facilities thereupon whose operation is left to the ZFO pursuant to the provision of Article 25, the total rent is calculated considering the plot and building unit rental fees separately, and they are rented to the said user with preference.
d) The user must take necessary precautions against fire and other hazards in the plot that he rents and must insure the buildings and facilities therein against fire.
e) The user is responsible for all goods that enter or leave the place he rents and must conform with the provisions hereof.

PART FIVE
FOREIGN EXCHANGE, BANKING, INSURANCE SERVICES
SECTION ONE
Foreign Exchange, Banking And Insurance Services

Foreign Exchange
ARTICLE 47 - Costs of goods, payments to the Special Account, service fees, wages and premiums of workers and rents related to activities in the zone are paid in foreign currency. Payments made in Turkish Lira in the zone are governed by the provisions of the Decision of the Council of Ministers Nr. 85/9801 dated 16 August 1985.

Real persons and legal entities residing abroad and investing in a zone must bring the cash portion of their capitals in the form of foreign currency.

Foreign capital institutions, or real persons and legal entities domiciled abroad that operate in Turkey are free to transfer the capital they bring to the zone in the form of cash in foreign currency, assets in kind or real rights, and any profits and revenues arising therefrom, as well as sale and/or liquidation proceeds, to other parts of Turkey or abroad. However such persons must inform the Zone Directorate of the assets to be transferred, and certify that such assets belong to them.

Transfer to other parts of Turkey of such cash capital as is exported into the Zone by persons domiciled in Turkey together with any profits and revenues obtained from investments, as well as sale and/or liquidation proceeds is permitted. However the export of capital in kind is subject to the permission of the UTFT. Transfer of such capital in cash and/or in kind and of any profits and/or revenues obtained from investments, as well as sale and/or liquidation proceeds abroad is also permitted.

Banking And Insurance Services
ARTICLE 48 - Banks, excluding off-shore banks and insurance companies located in a zone must operate in accordance with the provisions of general legislation.

Banks in a zone extend loans to users with priority according to their activities there.

Matters not provided for by the legislation on Free Zones concerning banking activities in the zone are governed by provisions of Article 74 of the Banks Act Nr. 3182, dated 25.4.1985. The establishment of banks or the opening of branch offices in the Zone by foreign banks are subject to the principles laid down in the Decision of the Council of Ministers Nr. 90/999 dated 18 September 1990.

SECTION TWO
Loading and Unloading Services And Other Services

Loading And Unloading Services
ARTICLE 49 - Loading, unloading and transport services for goods coming to a zone are performed by the ZFO or the Operator. In zones where is no Operator or ZFO these services may be performed by private persons or establishments, within the knowledge of the Zone Directorate.

When the mentioned services are performed by private persons or establishments, a contract is signed between the Zone Directorate, the Operator or the ZFO and said person or establishment. The Free Zone Service Tariff, prepared by the Operator or the ZFO is approved by the Directorate General taking the opinion of the zone Directorate, and procedures and principles concerning the collection of service fees are set out in this tariff.

Other Services
ARTICLE 50 ***- Those who wish to perform various service activities in the Zone, such as insurance agents, forwarding agents, customs brokers, sworn-in financial consultants, self- employed accountants and financial consultants and experts may do so with an Entry Permit issued by the Zone Directorate.

PART SIX
MISCELLANEOUS PROVISIONS

Objections And Complaints
ARTICLE 51 - Objections and complaints about licenses, permissions, services and fees in conjunction with a zone are made in the following manner:

a) Objections and Complaints about Licenses and Permissions:
Objections and complaints about licenses and permissions such as Operating Licenses, Entry Permits and Construction Permits are made to the Directorate General.
b) Objections and Complaints about Services and Fees:
Objections about the Operator providing services or about the ZFO are made by users to the Zone Directorate in question within three days of the date on which information about the event that forms the subject of the objection is acquired.
If an objection or complaint is examined and found credible and based on justifiable grounds, the Operator or the ZFO authorities are informed, and the matter investigated, by taking into consideration any defense replies given and provisions of the contract made between the UFT and the Operator or ZFO. If the objection or complaint is found justified, the Operator or the ZFO is requested in writing to correct the act in question or to perform the transaction that is omitted, as the case may be. If there is no action by the Operator or the ZFO on the basis of this warning, necessary measures are taken by the Zone Directorate, and UFT is informed of the matter.

Collection of Debts and Liquidation Procedures
ARTICLE 52 ****- In the Free Zones collection of debts are subject to the provisions set forth by the Collection of Debts and Bankruptcy Legislation.

Within the period to be determined by the Zone Directorate- not exceeding one month after the date of cancellation or expiration of the Operating License- goods which are not removed from the Zone and goods abandoned in the Zone are liquidated by a committee entrusted with the liquidation procedure headed by the Zone Director, composed of one official from the Directorate, and one person from Operator/ZFO and when required one official from the local professional institutions.

Goods to be liquidated are sold at the value determined through an official report by the Committee in a public auction. The date of the public auction is announced in a local newspaper twice with a three days interval in between, at least 15 days before the sale. If the goods are not sold in the first sale, at the second sale-on a date to be determined by the Committee- the goods are sold to the highest bidder.

Expenditures incurred by the Committee are deducted from the sale proceeds and the remainder registered as revenue to the Special Account.

Goods that cannot be liquidated in the Zone are handed over to the Customs Administration under minutes drawn up by the abovementioned Committee

Settlement Of Disputes By Reconciliation
ARTICLE 53- Any disputes excluding disputes of interest involving Collective Labor Contracts arising from business relations between a user and the Operator or the ZFO or among other persons and establishments operating in the Zone, may be settled through reconciliation by applying to the Zone Directorate. If such a dispute is settled by the Zone Directorate through reconciliation, the matter is recorded in minutes and one copy is given to each party, with another copy kept by the Zone Directorate.

Time Extension
ARTICLE 54- In the application of the provisions of this regulation with regard to the periods of time, time extensions may be granted in line with procedures and principles determined by the Directorate General in cases of force majeure and unexpected circumstances.

Arrangement Of Places Incorporated In The Zone
ARTICLE 55- Places that are separated from airports and harbors and incorporated in a zone are governed by these provisions. Depending on special conditions of such places additional principles may be laid down by UFT when deemed necessary.

Information Services
ARTICLE 56- In order to help increase foreign trade, information services in subjects such as:

- Making and developing contacts with foreign entrepreneurs;
- Passing on international statistics;
- Supplying information on know-how, license and cooperation proposals, and
- Passing on information on firms and foreign trade policies in industrialized countries,
may be provided by the Directorate General by way of passing on to users data of this kind supplied by international data banks and various other national and international bodies and institutions.

Zones Where There Is No Operator Or ZFO
ARTICLE 57- Where there is no Operator or ZFO, duties assigned to these in this Regulation are executed by the Zone Directorate.

Waiting Periods And Guarantees
ARTICLE 58 ****- Goods, tools, materials and equipments that are brought into the Zone temporarily for maintenance or repair purposes and that are not owned by the users may not remain in the Free Zones for more than 12 months.

During any temporary exit from a zone, for maintenance or repair purposes of investment goods and permanent fixtures registered in the books and records of a user, a guarantee in the amount of 0.5% of the book value is paid.

A guarantee in the amount of %0.5 is paid on the CIF values of the goods sent temporarily to Turkey from Zone to be exhibited or to be displayed in fairs and of the goods which are bought from Turkey and brought into the zone but sent back to Turkey from the Zone to be changed or to be processed for not being in conformity with the order or the quality.

Turkish Lira, foreign exchange, bank letters of guarantee, government bonds and treasury bills are accepted as guarantee. The guarantees received as Turkish Lira and foreign exchanges are collected in the temporary guarantee accounts, opened with the banks, which the Zone Directorate have subsidiary accounts with. However, letters of guarantee, government bills and treasury bonds are preserved in the safes of the Zone Directorate. Guarantees received are given back by the instruction of Zone Directorate when the goods temporarily removed out of the zone are brought in. Guarantees are liquidated if the goods, which are bound to the guarantee, are not brought in and this amount is recorded as income to the Special Account.

Regulations Repealed
ARTICLE 59- Following Regulations issued previously are hereby repealed:
- The Mersin Free Zone Regulations and Antalya Free Zone Regulations published in the Official Gazette Nr. 18896, dated 12 October 1985;
- The Aegean Free Zone Regulations published in the Official Gazette Nr. 19974, dated 30 October 1988;
- The Istanbul Atatürk Airport Free Zone Regulations published in the Official Gazette Nr. 20517, dated 13 May 1990:
- The Adana-Yumurtalik Free Zone Regulations published in the Official Gazette Nr. 20626, dated 5 September 1990;
- The Istanbul -Trakya Free Zone Regulations published in the Official Gazette, Nr. 20784, dated 12 February 1991, and .
- The Trabzon Free Zone Regulation published in the Official Gazette Nr. 20811, dated 11 March 1991.

Entry into effect
ARTICLE 60-This regulation shall come into effect on the date of its publication in the Official Gazette

Execution
ARTICLE 61- The provisions hereof shall be executed by the Minister to whom the Undersecretariat of the Foreign Trade is subordinated.

Interim Articles
INTERIM ARTICLE 1- Favorable terms contained in contracts signed with the ZFOs and Operators before present Regulations enter into effect concerning:
- The operation of the Mersin Free Zone by MESBAS-Mersin Free Zone Operator Inc., from 10.10.1986 to 10.10.2006.
- The operation of the Antalya Free Zone by ASBAS-Antalya Free Zone Operator Inc., from 10.10.1986 to 10.10.2006,
- The operation of the Aegean Free Zone by ESBAS-Aegean Free Zone Operator Inc., from 30.10.1989 to 30.10.2019,
- The establishment and operation of the Adana-Yumurtalik Free Zone by TAYSEB -Toros Adana Yumurtalik Free Zone Founder and Operator Inc., from 12.12.1990 to 12.12.2020,
- The establishment and operation of the Trabzon Free Zone by TRANSBAS-Trabzon Free Zone Founder and Operator Inc., from 10.07.1991 to 10.07.2010,
remain in full force and effect until contracts in question expire.

INTERIM ARTICLE 2- Provisions of Operating Licenses issued before the date upon which the present Regulation takes effect remain unaffected. Users who have received Operating Licenses by the time this Regulation comes into effect may exercise the rights laid down in paragraphs 4 and 5 of Article 11 hereof whenever they wish.

INTERIM ARTICLE 3- Procedures started before this Regulation takes effect continue to be handled in conformity with the Regulations of the Free Zone concerned. Favorable provisions hereof also apply to procedures already started.

*As amended by the Law No.4059, published in the Official Gazette dated 20.12.1994
**As amended by the Law No.4684, published in the Official Gazette dated 03.07.2001
***As amended and published in the Official Gazette No.24355 dated 27.03.2001
**** As amended and published in the Official Gazette No.24849 dated 17.08.2002
***** As amended and published in the Official Gazette No.25153 dated 29.06.2003

Please note that the English version is an unofficial translation. Only the Turkish version of the regulation is legally binding.