Bringing %80 percent of export proceeds to Turkey and changing them in Banks Question-Answer
1- Do Export Proceeds have to be brought to Turkey?
With the declaration published in the official journal on 4th September 2018, Ministry of Treasury has used its power to regulate. (32th declaration regarding protection of the value of Turkish currency law) (Declaration Number: 2018-32/48)
The costs related to the export transactions carried out by the inhabitants of Turkey, have to be brought to Turkey or transferred to the bank that mediated exporting in the 180 days at the latest from the date of the actual export.
%80 percent of the above-mentioned amount has to be sold to a bank.
Bringing export proceeds in Tukey over the declared lira or currency is mandatory. In exchange for the exporting over lira, bringing currency is possible. It is also possible to bring export proceeds effectively with the passenger. It has to be declared to the customs office.
2-How was it before?
According to the protection of the value of Turkish currency law, bringing export proceeds in Turkey used to be mandatory until 2008.
In case of not bringing the amounts above 100.000 dollars in a specific time, the penalty can be imposed in accordance with the foreign exchange law.
However, with the legislation published in the official journal on 8th February 2018, bringing currency to the homeland was not mandatory anymore.
If required, the relevant ministry was given the authority to regulate this issue.
3-Which exports are within the scope of the new legislation?
Proceeds of the export transactions carried out by the Turkish inhabitants have to be transferred to or brought in the bank that mediated exporting, without delay.
Bringing the proceeds cannot exceed 180 days after the actual export day.
%80 percent of the above-mentioned amount has to be sold to a bank.
Export proceeds can be brought in homeland according to the payment method.
- a) Payment with the letter of credit,
- b) Documents against d/p,
- c) Cash on delivery,
- D) Acceptance Credit Payment,
- e) Documents against d/p Payment,
- f) Acceptance Credit cash on delivery,
- g) Cash Advance.
4-If lira is declared as export cost, can it be brought?
Bringing export proceeds in Tukey over the declared lira or currency is mandatory, and in exchange for the exporting carried out over lira, bringing currency is also possible.
5- Can export proceeds be brought to Turkey by cash with the passenger?
In case of bringing export proceeds by cash with the passenger, it has to be declared to the customs.
6- How long export agreements made in exchange for cash currency have to be completed?
Export agreements made in exchange for cash currency have to be completed within 24 months.
7- How long is the export period within the scope of inward processing authorization certificate?
Operating time of cash currency provided in relevance to inward processing authorization certificate, tax, and, export within the scope of levies and charges exemption certificate is as far as the documentation period (including additional time).
8- To which provisions advance currencies expired are subjected to?
Advance currencies not exported or refunded on time are subjected to pre-financing. If advance currencies subjected to pre-financing provisions are extended within the frame of relevant legislation provisions, tenants are also exceeded as much as additional time.
9-When do Building contractors working with abroad have to bring the export proceeds in Turkey?
Export proceeds of building contractors working with abroad; have to be brought to Turkey within 365 days and to be sold to a bank.
10- When does consignment cost have to be brought into the homeland?
Export proceeds carried out by means of consignments have to be brought to Turkey within 180 days and to be sold to a bank.
11- When do the export proceeds of temporary exported merchandise have to be brought to Turkey?
In case of bringing the export proceeds of temporarily exported merchandise in Turkey, they are supposed to be brought in Turkey and sold to a bank within 90 days.
12 When do the export proceeds of financial leasing have to be brought to Turkey?
In the exports on credit or by renting carried out within the frame of the export regime and financial leasing in force, the export proceeds have to be brought in Turkey and sold to a bank within 90 days.
13- Who is responsible for bringing exported merchandise proceeds to Turkey and selling them to banks?
Exporters are responsible for bringing exported merchandise proceeds to Turkey and selling them to banks.
14- Who would be responsible for if claim right stemmed from export proceeds are bought in banks or factoring companies?
If claim right is bought and commercial risk is undertaken by banks and factoring companies, the ministry of the treasury will be responsible for bringing export proceeds in Turkey.
15- Do Banks follow and inform us about the export proceeds?
Yes, they do. Banks mediated export are obliged to follow the process of bringing export proceeds in Turkey and selling them to banks.
16- Will export expense be deducted from exporters’ account when bringing in to Turkey?
Freight, insurance premium, commission, warehouse, storehouse, customs expense, mortar, and factoring expenses relevant to export and discount expenses on the condition that interest rates won’t exceed international money market’s interest rates, and transportation, conservation, maintenance and fumigation of the merchandise exported by consignation are investigated and decided by banks.
17- Can new amount to be brought in Turkey taken into account in case of diminishing export amount at the end of the expert investigation?
If there is a condition that weighing and analyzing have to perform as a necessity of business practices, diminishing export amounts of measure shortcoming or quality difference and, appraisement fee, analyzed at the end of measuring and analyzing the process, are investigated and decided by banks.
18- Can export proceeds, brought in Turkey properly, be entered into account as import proceeds?
Export proceeds brought in Turkey on time; exporters’ import proceeds, payments regarding capital movements, expenses regarding invisible transactions and the purchase proceeds of transit trade can be entered into account by banks.
19- If the parties are the same on exporting and importing, can banks enter into account?
On the merchandise importing and exporting within the frame of foreign trade regulation, it is possible for banks to entering merchandise importing and exporting into the system on the condition of the parties being the same and being stick to the specific month of bringing export proceeds in Turkey.
20- Who will decide on the examination if there are some situations not in the notification?
Demands except for in the 18th and 19th articles are examined and finalized by the ministry of finance.
21- Will the rest amount be turned into cash if export proceeds are allowed to be entered into account?
In the situation of allowing entering into the system of the export proceeds, they are considered to be brought to Turkey on time. Currency purchase and selling documentation are issued over the currency purchase and selling on the date of entering into the system.
22- Who is responsible for the closure of the accounts of export proceeds brought in Turkey just in time?
Banks are responsible for the closure of the accounts of export proceeds brought in Turkey just in time.
23- Are export accounts not closed on legal time notified to the tax office by banks?
If export accounts are not closed on legal time, it is notified to the tax office directorate or tax office administration within five days by the banks.
24-What does tax office do for the export accounts not closed on legal time?
Followed by the ten days’ notice, 90 days warning is sent by the relevant tax office directorate or tax office administration. Within this duration, accounts need to be closed and evident to be provided regarding proper situation according to the article 9 of the relevant law.
25-What needs to be done if there are logical reasons for export accounts not closed on legal time?
Except for the force majeure, if the situation continues, additional time will be given by the tax office administration or tax office directorate as of every six months.
26- Is additional time given except for the force majeure?
If there are logical reasons except for the force majeure, 6 months of the additional time period with regard to the company’s request, is investigated and finalized by tax office administration and tax office directorate as three months terms and the additional time period after 6 months additional period is investigated and finalized by Ministry of Finance.
27- What is the force majeure?
1) Force majeure;
- a) The bankruptcy of exporting or importing company, going into administration, or ceasing its operations, suspension of the bankruptcy of the company, the death of the owner of the unlimited company.
- b) Strike, lock-out and averageness,
- c) The impossibility of closing the bank accounts of importing or exporting companies due to the problems occurring in the banks and official institutions of the exporter and, importer companies’ countries.
ç) Calamity, disaster, catastrophe, blockade,
- d) Loss, damage or annihilation of property
- e) Bring an action for an infringement or appeal to arbitration
28- What are the documents proving force majeure?
Documents proving force majeure;
On the 27th article of the relevant law
– From competent authorities
– From the official authorities of the exporters’ cities, or stamped by the local administration, (excluding calamity or blockade)
– From official authorities, mediator banks the official authorities of the exporters’ cities
-from insurance companies, international inspection companies, or relevant countries official authorities are mandatory.
29- Where is the documents provided from the abroad for the force majeure be approved?
The documents provided from the abroad for the force majeure need to be approved by our foreign delegations or by the provisions of the convention abolishing the requirement for legalization for foreign public documents prepared within the frame of Lahey States’ Private Law Conference.
30- What is the amount limit in cancelation?
– (1) in each bill of entry;
- a) Not exceeding 100.000 dollars and its equal, and without taking the force majeure into account, %10 of the amount in the documentation or declaration, (including the shortcomings stemmed from insurance costs) and without taking the payment model into account,
- b) ) Not exceeding 200.000 dollars and its equal, and without taking the force majeure into account in accordance with the 9th article, %10 of the amount in the documentation or declaration
Is canceled and closed by Tax Office Administration or/and Tax Office Institution.
(2) However, the maxim of b) is finalized by the Ministry of Finance.
31- Which Institution will decide the basis and procedures of implementation?
Basis and Procedures decided by the relevant ministry will be announced by the Central Bank.
32- Will the liabilities continue, after notification is abolished?
If the notification is abolished, the liabilities continue when the actual export date exceeds the abolition date.
33- When the notification is gone into force?
Mentioned notification is gone into force on the 4th September 2018, and published in the official journal.
34- When will it prevail?
The obligations of the notification prevail within six months after its going into force.
35- Which ministry will perform its obligations?
Obligations of the notification will be performed by the ministry of finance.
Independent accountant and financial advisor
Istanbul, 13 Sep 2018