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