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Recent Updates on Turquality Legislation
September 11, 2019
Ece Sancak
Recent Updates on Turquality Legislation

The Turquality Program, which includes 186 brands of 175companies, was launched in 2004 for brands in the textile and garment industries. Over time, the Turquality Program has expanded, including the fast consumption and durable consumer goods, jewelry, metal and mining, automotive and industrial products and services sector. With the recent changes, the Turquality Program has started to include the gastronomy and foreign currency earning service sectors.


01.06.2017 date and 30083 numbered Official Gazette published (Communiqué No: 2017/2) Communiqué "The branding of the OverseasTurks Brand, Turkey the Communiqué on Placement and Promotion of the ImageWare" (2006/4 Decree), in the organizations (Turkey Important regulations have been introduced affecting Exporters Unions, Exporters Unions, ProducerAssociations and Producer Unions), company and management consultancy firms.Application Procedures and Principles of the Communiqué numbered 2006/4 entered into force on 25.08.2017. The effects of the legislation on implementation are given below.


1. Target Country Focus:


The Turquality Program aims to brand the companies in the target countries they set as part of the Development Road Map study. In this context, the activities carried out in the target countries of the companies were supported during the Turquality Program without any time constraints. In addition, activities carried out in countries other than countries were also supported under the Turquality Program. One of the issues that affect companies the most in terms of legislative amendment is that the target country concentration of the Turquality Program is increased and various restrictions are brought about in this regard. After the admission to the program, only the countries determined in the Development Roadmap study will be accepted as thetarget country. Companies will be able to define the target countries to automation after the application date and receive support for the activities they carry out in the target countries for a period of 5 years. The start date of the 5-year period will be considered as the date of the first payment document for the first activity carried out in the relevant target market and whose file has been approved. Activities for countries outside the target country will not be supported. With the amendment of the legislation, it has become important for companies to benefit from the program in the most effective way, by determining the countries where the companies will focus and/ or brand as the target country and get approval for these countries. However, additional target country additions can also be provided with Annex 14 so that companies can benefit from the new opportunities they discover in new targetcountries.


2. Support Period:


Before the legislative amendment, the duration of the Turquality Program was implemented as 5 + 5 years. The Turquality Program was made indefinite with the legislative amendment published on June 1, 2017 and introduced on August 25, 2018. However, within the framework of the same amendment, each target country determined by the companies will be covered forfive years. In this context, companies can benefit from supports for different countries in different periods, provided that they do not exceed five years during their activities.


3. Change in Support Limits:


The support upper limits, which are currently determined asAmerican Dollars, have been converted into Turkish Liras with the new legislation. With the amendment made in the legislation, the upper limits of the support have been rearranged in some support areas. The determined support upper limits will be updated at the beginning of each calendar year by multiplying with the average of Consumer Price Index and Domestic ProducerPrice Index [(CPI + D-PPI ) / 2].(CPI +D-PPI) / 2.


4. Development Roadmap Support Rate:


After the admission to the program, the support rate of the Development Roadmap study carried out with management consultancy firms was revised as 50%. In this context, the support rate will be applied as 50% in the expenditures of the Development Road Map project, which is paid after the effective date of the legislation.


5. Receiving applications through the automation system:


The Turquality Program, which receives support applications only with written and wet signed documents, will receive all applications only through the automation system as of 25/08/2017. The accuracy of all documents submitted through the system and the obligation to keep the documents belong to the company for 10 years. When calculating the deadlines, the date on which the support application is sent via e-signature over the system is taken into consideration.


If there is any deficiency in the required documents, including the approval of the Commercial Counselor, the reviewer does not apply the missing document for the expenditure in question and rejects the support application. In case of errors such as amount, date, spelling error in other documents, missing document process can be applied.


Companies must apply to Turquality Secretariat with thee-signature commitment enclosed in the circular attached to the Turquality automation system users authorized by the companies. Authorized persons must be employed from within the company.


6. Benefiting from Other Export-Oriented Supports:


The brands supported within the scope of the program are provided to benefit from other export-oriented government supports. Companies currently supported by the Turquality Program can also benefit from the following support programs:


- Turkish Trade Centers

- International Domestic Fair Participations

- Communiqué on Promoting the Development of International Competitiveness

- Global Supply Chain Support, Delegations and Company Purchase Support


The supports that the companies that are currently supportedcannot benefit from are listed below. When examined in detail, it will be seen that these supports are already in the scope of Turquality.


- Support provided under the Decision on Support of MarketEntry Documents, excluding global supply chain support

- Foreign market research support provided within the scope of the Communiqué on Market Research and Market Access Support.

- Individual consultancy support provided under theCommuniqué on Promoting the Development of International Competitiveness

- Supports provided within the scope of the Communiqué onSupporting Foreign Units, Brands and Promotion Activities, excluding the support of the Turkish Trade Center.

- Support provided by the Communiqué on Supporting FairParticipation Abroad


7. New support items have been added to the Turquality Program support items consisting of hundreds of items in line with the needs ofthe companies and the needs brought by the new legislation.


- Product Display Greenhouse

- Trademark Registration Renewal

- Storage Service

- Concept Architectural Expenses

- New Consulting Items

- Licensing and Clinical Test expenses, which are mandatory for entering foreign markets

- Industrial product designer employed in product development


For more information please contact Orbis Consultancy.

September 11, 2019
Ece Sancak