Grand National Assembly of Turkey Approved Production Reform Package Officially

Draft Law on the Amendment of Some Laws and Decrees on the promotion of industrial development and support of production was passed into law by the Grand National Assembly of Turkey.
According to the law, industrial enterprises will not be obliged to receive work permits for working weekend given by municipalities to work on weekend holidays. Definition of industrialist specified before in Industrial Registry Law was prespecified, companies working on information technologies and software products was come under the law.

A pre-registration system is introduced to inform newly-established industrial enterprises so as to teach them their obligations before they start  production and such kind of activities.
Industrial enterprises will be pre-registered in the industrial register to be kept in the Ministry of Science, Industry and Technology before starting production activities.  The registration procedures will be in electronic environment, and the obligation for sending proclamation by post of hand-delivery will be released.
The administrative fines given for the industrial enterprises who have not registered before in the industrial registry shall be imposed also for companies whose registrations are time-barred.
Administrative fines shall be imposed for those who have not registered in the industrial register before, regardless of whether they are in activity or not; but who have  registered for the industrial register within a year from  the date of adoption of law and have obtained their certificates are exempt from fines mentioned above.

Administrative fines will not be applied for those who have made changes in their companies, submitted declarations and annual business statements, but have given any notice of them to the authorities before the effective time.

 Tax Exemption

In order to reduce costs of investment to be made in organized industrial zones, free zones, technology development zones and industrial sites by enterprises, stamp taxes shall not be taken from the contracts and commitment letters related to the allocation of the land located in these regions.
Activities that must put an annotation for the land allocation located on these regions mentioned above, transfer and registration procedures for the allocated land in accordance with the allocation agreement of the land and buildings built on it, the land use conversion operations of the buildings built on these areas will be exempt from taxes.

Companies located in these areas will be exempt from property tax.

The similar temporary exemptions specified by law shall be removed, because organized industrial zones, free zones, industrial zones and industrial sites  shall be levied for real estates permanently.

 Age Limit For Being Employed in Higher Education Institutions

The Council of Higher Education (YÖK) will work on the specialization of universities and decide on this issue.

Those who have benefited from staying in their positions in the departments and programs determined by the higher education institutions as of the date of the contract, can be employed until they are 75 years old after their retirement with the approval of the Higher Education Institution and the approval of YÖK under a one-year contract. The connection of insurance or participating will be continued based on the previous staff titles.

The prohibitions, duties and responsibilities that instructors are supposed to, and disciplinary provisions shall be applied to those who will be employed in this way.  The procedures and principles regarding to this amendment will be determined by YÖK if deemed suitable by the Ministry of Finance.
For each student who is enrolled in one of the vocational colleges established in the organized industrial zones, education support will be given by YÖK within the scope of budget allotted for this purpose.
Scholarships will be given with pre-determined amounts without being subject to the provisions of the Law on Granting and Loaning of Higher Education Students, for the students who will be assigned to the graduate programmes with thesis, and doctoral programs within the scope of the project.

Prescribed by law, regulations were made regarding the rights of the people who are both the member of parliament and academicians and would like to work for universities after their deputyship are completed.

 Universities will be established in Never, Cappadocia and Ankara to provide education in technical fields and fine arts.

According to the Law on the Amendment of Some Laws and Decrees on the Promotion of the Industry and the Support of Production, higher education institutions will be able to establish technology transfer offices in the capital company status in order to cooperate with the public and private sector in relation to R & D and innovation and to transfer the produced information, protection of inventions made within the scope of intellectual property.

Charter capital of the TTO shall be covered by the budget allocated for scientific research project  or by floating capital. Workers and foreigners will be able to be employed in this TTO.
The provisions of the State Procurement Law will not be applied for these offices and their activities.
Academicians who have been working for state universities for 6 years will have right to paid leave for a year to study on R&D studies in Turkey and the other countries. They may have second or third right to paid leave; nevertheless, they will have to work in state universities min. for 6 years after their paid leave will be completed.

post-doctoral researchers will be employed for max. 3 years, provided that they remain in the field of medicine, dentistry, pharmacy and veterinary medicine, or arts within 7 years after proficiency so as to carry out R & D studies only in the research institute or to assist the projects under R & D carried out by the faculty members in R&D centre of state universities.
Higher Education Quality Council

The Higher Education Quality Assurance System will include the principles related to the internal and external quality assurance, accreditation processes of the education and research activities and administration services of higher education institutions and the authorization processes of independent external evaluation institutions.

Higher Education Quality Board will be established  with its own administrative and financial autonomy, public legal personality and special budget.

The committee will carry out internal and external quality assurance, accreditation processes and the authorization of independent external evaluation bodies to make assessments in accordance with national and international quality standards for the quality levels of education and research activities and administrative services of higher education institutions.

There will be 13 members of Higher Education Quality Board. In this board there are 13 members on behalf of YÖK, Universities, MEB, TURKAK, TUBITAK, Turkish Surgeon Institutions, TOBB and university students.
The Advisory Board on Higher Education Programs will create and develop employment-oriented policies in the field of higher education, the new training programs will be opened and will make suggestions for the planning of the quotas.

The Vocational Schools Coordination Board will set standards for the opening of vocational colleges and programs, develop and monitor existing programs, and make recommendations and suggestions on graduate employment and graduation completion processes.

Until January 1, 2013, YÖK will necessitate for the undergraduate students of science and engineering graduates from state universities to complete their studies in one semester in private sector enterprises, techno parks, research infrastructures, R & D centres or industrial establishments by attending practical trainings.
35 percent of the net amount of the minimum wage will be paid to the students during their practical training.

New universities are being established, the names of present universities are being changed
There will be three newly-established universities founded by charitable institutions.
Moreover, some current universities will have new names.

 Rates of Banderols

Law on revenues of The Turkish Radio and Television Corporation (TRT) is also being amended.
Administrative fines for the sale of non-bandrolled devices will be  doubled of the banderol price, and administrative fines suspended for those who buy the devices will be removed.
For the other devices mentioned in the law, like the mobile phones, computers and tablets, vehicles, satellite receivers and media boxes" are individually listed, and the rate of the banderols are listed in order to clarify the application made by the decision of the Council of Ministers.
According to information given above, banderol rates will be; 6 percent for mobile phones, 2 percent for computer and tablet computers; if the devices subjected to the banderols used in vehicles cannot be proved separately, the VAT value for the sales invoice of the vehicles is 0,4 percent for the motor vehicles on the basis of VAT on the import declaration; 0.01 percent for other vehicles, 10 percent for television receivers designed to be connected to a video image or screen; it will be 10 per cent for all kinds of devices other than these devices and capable of receiving audio and visual broadcasts.
In order to reduce the cost burden of the enterprises registered to the industrial register, TRT share will not be taken from for their electricity usage.

Taking and changing decisions on spatial strategy, environmental scheme and 1 / 25.000 scale master planning , OIZs, industrial zones, industrial site and technology development zones will be subject to the approval of the Ministry of Science, Industry and Technology.

For the sales of forest products based on wood; The Council of Ministers will be authorized to determine the forestation fund to be collected from the buyers up to 3 per cent of the sales price and the forest villages development funds to be collected 3 per cent of these sales by zero or exceed 3 per cent.
Prescribed by the Vocational Education Law, theoretical and practical courses given in different steps and fields by higher education institutions will not be counted as an internship and the definition of "internship” will be changed.

The internship fee will be paid to the students who do internship in the higher education institutions.

Industrial Zones on Health in Trabzon and Zonguldak

The health zones will be established in line with the recommendation of the Ministry of Health and the decision of the Ministry to be taken by the Council of Ministers.
The ministry will also examine the proposal by taking the views of the relevant organizations. If it is found appropriate, the implementation plan will be prepared by the relevant administration.
The provisions of the Building Law will be applied to the plans to be made. But the plans to be implemented in the areas covered by the Tourism Encouragement Law and the Industrial Zones Law will be approved according to the relevant laws. Filling and drying shall be carried out according to the provisions of the applicable legislation. These lands will be under the control of state government and cannot be an issue of private property.

 KOSGEB Fees

The Small and Medium Sized Enterprises Development and Support Administration (KOSGEB) will make early payments in line with the procedures and principles set out for the support to the said enterprises; collect data and analyse services offered through fast, simplified, low-cost ways to ensure the fulfilment of public institutions and organizations with real and legal persons, businesses and all kinds of information and to receive data relating to these matters belongs to the entrepreneurs so as to use during the planning process of the policy.

The amount of contributions paid will be based on annual net income. Evidence documents for the determination of the amounts paid shall be sent to KOSGEB by the relevant institutions and organizations. Administrative fines of up to 10 thousand liras will be imposed for those who do not send documents on time.

Within the scope of privatization and program, the organizations that were united because of the suspension, unions membership fees and interests of these fees paid by the organization but not paid by the employee before leaving the job will not be refunded to those who leave the job.

 Amendments For OIZs

Final decision will be made by the Ministry of Science, Industry and Technology if there is not any unanimous note secured or one of the institutions opines negatively.

In case of being any part of the public land or public institutions and institutions within the scope of OIZ, these lands shall be handed over free of charge in the scope of the laws concerning the investment and promotion of employment. I In other cities,, they will be sold to OIZs on instalments or in advance based on their core values.

The Ministry of Environment and Urbanization or the relevant municipality will make the planning of areas outside the boundaries of OSB within one year at the latest after the selection of the site is finalized.
Provincial municipalities and district municipalities as well as chambers located in these districts may take part in the establishment of OIZ in accordance with the approval of the governorship, if there is not any other institutions within the borders of land chosen.

After having Legal personality, OIZs should  start expropriation process within 6 months from the date of establishment that cannot be reconciled; and, legal entities of OIZs can be abandoned by starting the liquidation process about the lands in which any case for registration and settlement for all the parcels has been initiated and that cannot be reached within 2 years or the price has not been still paid due to the cases opened for all parcels during that period.

According to the Law on the Amendment of Some Laws and Decrees in the General Assembly of the Grand National Assembly for the Promotion of Industry and Production Support, the administration which will carry out the expropriation on behalf of the Organized Industrial Zone (OIZ) will ask for the appointment of at least one member in the organized industrial zone within the commissions of appreciation and settlement which will be formed in accordance with the expropriation law. If appointment is not made during the period to be recognized, the relevant administration will choose the members of the commission by its own.

Organized Industrial Zones have changed the structure of the entrepreneur delegation.
It will consist of 15 original and 15 substitute members. Entrepreneurial members will be elected for 4 years except for the governor, and their memberships will be ended when their offices in their own institutions and organizations they represent will end. Those who work for OIZ will not be able to work in the other branches of OIZ, except governor.

Water, electricity and natural gas incomes of OIZ will not be seized and cannot be used except for their purpose. The OIZ will not be able to receive donations from participants about services that it is obliged to give.

Precautionary measures and postponement of bankruptcy will not stop the performance, follow-up and collection of electricity, water and natural gas debts to be paid to OIZ and will not prevent any companies from fulfilling their obligations.

 Loan Facilities For OIZs

Loan facilities will be enhanced for the OIZs in terms of loans that are required for their activities and that are approved by the ministry, as well as for loans used by financial institutions.


 Participants can make production

Except for service and support areas, each participant or some of participants’ tenant may make production on each parcel in the OIZs. Holding and affiliated companies defined in the Turkish Commercial Code shall be exempt from this provision.

OIZs will have the right to establish and operate electricity generation facilities in their own OIZ area, without having to establish a separate company with the permission of the Ministry. Companies in OIZ will get permission to build and operate electricity generation facilities.

Companies placed at OIZ will use their OIZ’s sub-structures. These companies will not use another sub-structure without OIZ’s permission and establish an individual facility.

OIZ’s legal entity will be exempt from all kinds of taxes, formality and fee related to operations for this law practice.

Regulations for energy expense of OIZ’s participants will be made by Council of Ministers without intervene in price that formed with free market conditions. Waste water expense will not charge to zones which operate waste water treatment facility by municipality.

They will submit all documents and information

OIZ and Organized Industrial Zone Supreme Organisation (OSBÜK) members and their person will submit all documents and information if Ministry demands from them.

OIZ and OSBÜK members and their person will be responsible for their wrongs. These persons will be punished due to their crimes on money, money-equivalent document, bills as well as balance, records, reports and documentations like civil servants.

They will be suspended temporarily

OIZ’s establishment protocol will be prepared by OIZ’s institutions and organizations which participated to organism and confirmed by Ministry. Ministry will be entitled to control and take measures for all account and operations of OIZ and OSBÜK if it is necessary or upon complaint. Members and their persons of OIZ and OSBÜK which opened an investigation for charges related to their task will be suspended up to 3 months temporarily. The judgement of suspending can be demanded from court until the end of judging. Persons who were suspended will return to their works to complete their remaining tasks if the Ministry decides not to prosecute them or if their convictions are not decided.

 
 It can be allocated free of charge

The parcels at the OIZs in the provinces and districts determined by the decision of the Council of Ministers can be allocated completely or partially free of charge.

Unallocated parcels at the OIZ that will use the Ministry loan, can be allocated completely or partially free of charge to real or legal entities that are engaged in investments for employment of at least 10 people. Under the circumstances, the value of the allocated parcel will be deducted from the loan repayment given to the OIZ by the Ministry.

Payments will be blocked for the parcels allocated to the real and legal entities before the date on which the regulation will enter into force, and the rest of this amount will be deducted from the loan repayment given to the OIZ by the Ministry.

Parcel allocation can be made completely or partially free of charge to real or legal entities that are engaged in investments for employment of at least 10 people. From the OIZs that have not used the Ministry's credit or paid their credit debt. Under the circumstances, the cost of allocated parcel will be paid from the appropriation to be set for this purpose to the Ministry budget of the OIZ legal entity.
When the investor hasn’t met the stated conditions or hasn’t completed its investment in estimated time, the parcel allocation will be cancelled. In this case, all the structures and facilities in well condition and operation will be transferred to the legal entity of the OSB without any compensation or value.

 OIZ can be establish abroad

When the OIZ’s legal entities or companies located in Turkey decide with their authorized members, the establishment of OIZ abroad, taking partnership with established abroad and operating these OIZs can be allowed by the Council of Ministers. The OIZ can get into a partnerships of real estate investment with condition which the majority of administration and share is on the OIZ legal entity and operates at these zones. The zones where the industrial facilities built according to the Mer's plan are located, can be evaluated as OIZ if applicants made within one year from the date of entry into force of the regulation are deemed appropriate by the governorship. OIZs which have acquired legal entity before the date of entry into force of the regulation and have not acquired any immovable property, will have 2 years to sue declaratory and registration about parcels that haven’t been began to nationalise and reconciled.
 
 The expropriated immovables will be settled to investments

The immovables in both scopes and the immovables acquired through expropriation will be primarily allocated to medium high and high technology investments. If more than one investor request allocation at the same parcel, the technology concentration, investment amount and employment rate will be most important conditions and in case of equality, the lottery method will be applied.
The Ministry can credit part of land acquisition cost almost entire in case of request of OIZ.
Natural gas distribution companies can perform distribution activities in organized industrial zones by making network and connection investments for organized industrial zones in case of OIZ’s demands.

 It will be within the scope of financial support

In technology development zones, mathematics, physics, chemistry and biology departments of higher education institutions will be within the scope of support. People having at least graduate degree will be employed in technology development zones and the monthly salary to be paid for each of these employees will be covered from the budget of the Ministry of Science, Industry and Technology for two years, up to the gross amount of the minimum wage applied for that year.
This support will not exceed 10% of the total number of personnel employed for the companies in Technology Development Zones. This support will be applied to R&D personnel graduated from basic sciences and employed in the executive companies of the Technology Development Zones.
By law, the Council of Ministers is authorized to make regulations with the aim of harmonizing the provision of income exemption implemented in Technology Development Zones in accordance with the international standards. Thus, the legislation for encouraging the implementation of activities with the aim of generating high added value in the country could be further formed.
According to the Law on the Amendment of Some Laws and Decrees on the Promotion of the Industry and the Support of Production, regulations in accordance with EU legislation on energy efficiency are being reformed.
Within the scope of this law, there are some  prohibition on supply chain of the market as a part of Law for Preparation and Implementation of Technical Legislation on Products, or the confiscation of a product from the market, which do not comply with EU energy efficiency criteria.
If it is determined that the product is not safe, the public authority shall prohibit the supply of the product to the market, pull from the market, partially or completely dispose of it, and disclose information about the risks involved in the products.
If the producers think that this announcement is inadequate, it will announce it in two different newspapers distributed throughout the country and on two television channels broadcasting across the country, and will  make the people aware of the risk.
The effect of products which are thought that have insecure competent, or unsuitable for technical regulation, is removed in a short time by authorities.  Thus, for producers, any adverse effects and unfair competition conditions can be prevented.
Administrative Fines
As a result of marketing surveys and supervision activities, various administrative fines ranging from 4 thousand to 250 thousand Turkish liras are brought for products specified to be inappropriate.
By law, it is intended to prevent different applications to be carried out by public institutions for middle and high-tech domestic products with a price advantage up to 15%. Moreover, price advantages are provided up to 15% for tenderers who offer domestic software products.

Industrial Zones can be built
The purpose of Law on industrial zones hall be reformed by this law.
The law prescribed on the establishment, management and operation of industrial zones includes some provisions on the planning of the Industrial Zones structure of the coordination board, the establishment of the industrial zones, the declaration, the  process for giving permits for constructions, incentives and the duties of the executive companies.
The Ministry of Science, Industry and Technology may propose some lands to build industrial zones on them referring to demands of the institutions, organizations or the executive companies.
As a result of proposal of the Ministry and the Council of Ministers, it will be allowed to establish industrial zones on these areas.. The land that was declared as an industrial zone will be expropriated and registered as a public zone and will be assigned for the usage of the Ministry.
Assignment of space can be made for local and foreign investors; natural and legal persons after they make application to the Ministry. Nevertheless, for the industrial zones whose costs will be covered by executive companies, investors will have to make application on the issue to the executive companies. In the framework of the regulations issued in the Law, the preliminary floor plan shall be formed for the investors determined by the executive companies.
The development plans, infrastructure and superstructure projects to be prepared by the executive companies or investors as well as the licenses and permits related to them, and licenses for opening and working of the business, will be subject to the approval and inspection of the Ministry. Industrial zones will not pay for waste water to municipalities if they have waste water treatment plants.

 Special industrial zones

By law, private industrial zones are also being established. Some pre-determined areas will be announced by the Council of Ministers as a private industrial zone by taking their location, measures of the lands, or institutions to be built on them etc.  into consideration. At least 400 million pounds worth of new investment commitment will be required in the areas to be announced as special industrial zones, and the actual implementation period shall be updated according to the determined revaluation rate if it does not get 5 years.
They can be sold or rented

The land in the possession of the applicant, which is within the boundaries of the area declared as a special industrial zone, may be sold on parcels or operating buildings on this land may be rented.
If the investment is not carried out within the given commitment period for 5 years, the reasons for the delay will be evaluated by the assembly, and if necessary, this period may be extended for one year only for one time.
If the commitment will not be met within the additional time given, it may be decided on removal of the private industrial zone.
Executive Companies

Local governments, banks and financial institutions, local and foreign private legal entities engaged in industrial activities in the region, related foundations, cooperatives and associations, related public institutions and exporters' unions, founder or it may be a shareholder later. Foreign private legal entities may be a part of the executive companies. The industrial zones declared before the date of the approval of the act shall be made compatible with the provisions determined within a year. The operational directorates of the current industrial zones will keep working on until the establishment date of the executive companies. Including the projects that were completed or have been carried out by the Ministry of Transport, Maritime Affairs and Communications General Directorate of Infrastructure Investments; public institutions and organizations, private sector or legal entities, public and private sector business association models will be developed in order to ensure the construction and operation of transportation infrastructures. Thus, the connection can be established between the railways, ports, shelters, coastal structures, airports, industrial sites, factories, refineries, industrial facilities, organized industrial zones, industrial zones, technology development zones, mining quarries, logistic villages or bases, industrial establishments and similar facilities.
Occupational health and safety services for the workplaces with employees fewer than 50 and described as being less dangerous classes may be carried out by employers or employer representatives. Workplaces with fewer  employees than 50 and those in less dangerous class will be able to receive services from family physicians and public health service providers, such as workplaces with fewer employees than 10, and they will have the authority to make regulations. The provisions of the Occupational Health and Safety Law, "occupational health and safety services" and "support for occupational health and safety services" shall be entered into force on July 1, 2020 instead of July  1, 2017.
5 for Higher Education Council, 15 for Higher Education Quality Board and 570 people for Ankara Fine Arts University will be staffed.