Turkiye Expands Scope of Exports-Counted Sales and Deliveries
In a significant regulatory update, the Turkish Ministry of Trade has expanded the scope of what qualifies as export sales. Manufacturers’ sales to financial leasing companies, provided they are delivered to firms with an investment incentive certificate, are now considered export sales. This change, published in the Official Gazette, reflects the government’s ongoing efforts to streamline export processes and promote manufacturing.
Key Highlights of the Regulation Change
- New Sales Inclusion:
Under the new regulation, manufacturers delivering goods to financial leasing companies, as long as these goods are intended for firms holding an investment incentive certificate, will now be counted as export sales. - Updated Export Regulations:
The regulation not only includes the above sales but also introduces revisions to the necessary documentation required for fulfilling export-related obligations.
Impact of the Update
This update marks a strategic move by the Turkish government to enhance the country’s manufacturing and export sectors. The addition of leasing transactions within the scope of export sales will help manufacturers by opening up new avenues for their goods to be counted as exports. This benefits both small and large firms alike, especially those operating under investment incentive schemes.
Benefits to Manufacturers and Exporters
Manufacturers who qualify under this updated regulation can now:
- Expand Sales Opportunities:
By including sales to financial leasing companies as exports, manufacturers will have new markets to explore within Turkiye while enjoying the advantages of export-related incentives. - Boost Export Figures:
Counting leasing transactions towards total export sales can help firms improve their export statistics, leading to potential growth in international trade. - Tax Advantages:
As these sales are now classified as exports, manufacturers could benefit from tax exemptions typically offered for export activities.
Overview of the Original Regulation
Previously, only sales by manufacturers to investment certificate holders were considered export sales. These goods were typically investment materials delivered to incentivized firms for domestic projects. However, with the updated regulation, the inclusion of financial leasing companies now broadens the scope significantly, making it easier for manufacturers to qualify more of their transactions as exports.
Documentation and Compliance Updates
The new regulation also updates the documentation process, simplifying the requirements for closing export commitments. Manufacturers will need to provide the following for compliance:
- Detailed contracts showing delivery to investment certificate holders via leasing companies.
- Updated financial and export documents per the latest standards introduced by the Ministry of Trade.
Industries Likely to Benefit
While all manufacturing sectors stand to gain from these updates, certain industries are particularly well-positioned to benefit:
- Heavy Machinery Manufacturing:
These firms often rely on leasing companies to distribute equipment, making them prime beneficiaries of this new export classification. - Construction and Infrastructure:
Many companies in these sectors utilize investment incentive certificates to grow their operations, meaning that the updated regulation could see a surge in export-related sales. - Technology and Electronics Manufacturing:
Given the high demand for leasing in these industries, manufacturers can capitalize on the new rules to expand their reach within both domestic and export markets.
Simplified Processes and Opportunities for Growth
This regulatory update not only simplifies the process for manufacturers but also serves as a signal of Turkiye’s focus on boosting its export economy. The inclusion of financial leasing transactions provides companies with a clear pathway to increase their export activities without having to physically ship products overseas.
With these updates, Turkiye continues to strengthen its manufacturing base while boosting economic growth through streamlined export channels.
Summary of the Regulation’s Key Points:
- New Export Sales Scope: Sales by manufacturers to financial leasing companies, when delivered to investment certificate holders, now count as exports.
- Updated Documentation: Required information for export-related commitments has been revised to align with the new regulations.
- Benefits to Industry: Heavy machinery, construction, and technology firms are expected to benefit most from the changes.
The Ministry of Trade’s move to expand the scope of export sales represents a key shift in how domestic sales with international implications are classified. Manufacturers and exporters now have more tools at their disposal to leverage domestic sales as part of their export strategies, making Turkiye’s manufacturing sector even more competitive.
Source: AA / Prepared by Irem Yildiz