It is obligatory to export within 24 months in return for a cash payment in Türkiye

April 11, 2023

(1) It is obligatory to export in return for a cash payment within 24 months in Türkiye. However, if it is understood that export cannot be made within 24 months due to the existence of force majeure and justified situations in Article 9 of the Communiqué numbered 2018-32/48, before the expiry of the specified period, the force majeure / justified situation conditions will be declared in 2018-2019 Provided that it is certified as specified in Article 9 of the Communiqué no 32/48, an additional period of up to 1 year can be granted to the exporter by the bank. In case the continuation of force majeure/justified situation is documented at the end of the total additional period of 1 year given by the bank, the actions to be taken regarding the exporter within the scope of the Communiqué numbered 2018-32/48 are decided by the Ministry. However, the explanations regarding the pre-financing loan provisions in the second paragraph of this article are reserved. ³

(2) The provisions of pre-financing credit under foreign exchange legislation apply to this amount if no export in cash in exchange for foreign currency is made within 24 months or at the end of the additional period⁴ provided in accordance with the first paragraph, or if the entire amount in cash in exchange for foreign currency is not returned at once within this period. However, the portion of the cash amount that does not exceed 30,000 USD or equivalent foreign currency or Turkish Lira, which is not fully refunded at once or exported in due time, is not subject to pre-financing provisions. Banks do not notify the Ministry in order to initiate legal action in accordance with the Law No. 1567 on the Protection of the Value of Turkish Currency regarding the said cash currency. In addition, if there are justified reasons such as discount, discount or deterioration in the goods before the completion of the 24 months, and this is proven by the exporter to the bank to which the cash price is transferred / brought by the change in the contract and final sales invoice, it is possible to return a portion of the advance price up to the amount certified. In case of partial refunds other than this, the cash amount in question on the date of partial refund will be subject to the pre-financing provisions. Whether partial or not, it is possible to refund the cash fee only to the person making the transfer. The provisions of the Resource Utilization Support Fund (RUSF) legislation regarding the refund of the cash price are reserved.

(3) Persons who do not fulfill the export commitment regarding the cash amount of foreign currency by the banks are notified in writing and they are requested to send a written statement within 10 working days as to whether the export was carried out within the specified period. The written statement obtained from the person shall be attached to the notification to be made to the Ministry. In case a written declaration cannot be obtained from the person, the Ministry is notified by stating the stage by attaching the document (receipt of mail, etc.) Proving that the declaration request has been conveyed to the exporter. ⁸

(4) In no more than 24 months from the day the money is deposited by the banks into the business’s account, an export value acceptance certificate can be issued. An Export Value Acceptance Certificate, however, can be provided within the extended term if it falls under the first paragraph’s purview. ⁹

(5) The terms of the Communiqué no 2018-32/48 do not apply to amounts paid in advance to the exporter prior to the Communiqué’s publication.

(6) Cash fees may be transferred to another exporter company with the consent of the sender, provided that the written declaration of the transferring exporter company is received and they are not transferred again by the transferee.

(7) The transfer transaction can be made partially or completely to only one company within the usage period of the cash amount, starting from the date the amount is transferred to the foreign currency deposit account. It is possible to make a subsequent transfer to the same company in partial transfer transactions.

(8) In transactions issued by Export Value Acceptance Certificate;

A) In case of transfer of the entire cash price, a new Export Value Acceptance Certificate is issued on behalf of the exporter company that has taken over the price, and a note is placed on it that the Export Value Acceptance Certificate has been reissued as a result of the change, and the old Export Value Acceptance Certificate is attached to the new one.

B) In case of partial transfer of the cash price, an Export Value Acceptance Certificate is issued on behalf of the transferring exporter company for the transferred portion, the Export Value Acceptance Certificate that was previously issued on behalf of the transferor during the acceptance of the cash price is canceled as much as the transferred portion.

(9) The total invoice amount registered in the 22nd digit of the Customs Document is taken as the basis for the export amount against the cash price.

(10) Acceptance of the prices requested by the exporters to be accepted as “consignment advance” before the final sale is made as cash price.

(11) If the cash price (including the parts of the export letters of credit that allows cash payment) is sent with the condition of interest, the amount obtained by adding the interest amount to the price received in return for the cash price is exported.

(12) A copy/customs document information of the customs document in which the payment method is written as “cash payment” is submitted by the exporters to the bank to which the cash price is transferred/ brought. The use of the cash price in closing export accounts for customs documents with letter of credit, against documents, against goods or acceptance credit, or for customs documents in which one of the other payment methods is specified together with the cash payment method is possible provided that a copy of the relevant customs document/customs document information is submitted to the bank to which the cash price is transferred/brought together with the written declaration of the exporter.

(13) While the cash account is closed by the banks, necessary checks are made and the date, number and amount of the customs document is recorded on the firm and bank copy of the export value acceptance document.

(14) If an export prior to the transfer/receipt of the cash price is requested to be counted towards the commitment of the cash price, the export value acceptance document for the cash price is canceled and a new export value acceptance document related to the customs document deemed to be committed is issued and a note is placed on it that it was issued as a result of the change in payment method. In case the amount of the export value acceptance certificate regarding the cash price is more than the amount of the customs document considered as commitment, a new export value acceptance document should be issued regarding the cash price as much as the remaining amount and the canceled export value acceptance document should be attached to the new one.

The export commitment of the cash amount transferred/brought on behalf of the manufacturer or supplier company is closed if the title of the manufacturer or supplier company to which the cash price is transferred/ brought to the exporter is registered in the customs document regarding the export made to another importer through the intermediary exporter or if the invoice issued by the manufacturer or supplier company to the exporter is presented.

The cash price shall be counted towards the commitment of the export made to another importer before or after the transfer/receipt of the cash price, provided that it is declared within the period of collection of the export prices and the duration of the cash price. However, in order for the cash currency transferred/brought on behalf of the manufacturer or supplier company to be counted towards the commitment of the export made to another importer before or after the transfer/receipt of the cash price by the intermediary exporter, the title of the manufacturer or supplier must be registered in the customs document or the invoice issued by the manufacturer or supplier firm to the exporter must be submitted.

(15) In case a maturity of more than 24 months is stipulated in the contract for the export of ships within the scope of the shipbuilding contracts, it is obligatory to make the export against the cash price within the maturity period specified in the contract. In order to determine the foreseen maturity, it is obligatory to submit the contract containing the maturity or the proforma invoice or policy with the nature of proof of maturity to the intermediary bank together with the written declaration of the exporter. In case of not exporting in cash in return for foreign currency within the maturity period specified in the contract or not returning the entire amount of cash in cash within this period, this amount is subject to the provisions of pre-financing loan in terms of foreign exchange legislation. The provisions of the RUSF legislation regarding the refund of the cash price are reserved. ¹⁰

(16) If the guidelines in this circular’s 13th article are followed, it is possible to pay for exports in advance through check in export transactions. The provisions of this article are applied by analogy for cash payments made by check, as appropriate.

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FOOTNOTES

3 Letter of the Ministry of Treasury and Finance of the Republic of Türkiye, dated 30.09.2021 and numbered 603399.
4 Letter of the Ministry of Treasury and Finance of the Republic of Türkiye, dated 30.09.2021 and numbered 603399.
5 Letter of the Ministry of Treasury and Finance of the Republic of Türkiye, dated 04.02.2022 and numbered 936829.
6 Letter of the Ministry of Treasury and Finance of the Republic of Türkiye, dated 11.06.2021 and numbered 353943.
7 Letter of the Ministry of Treasury and Finance of the Republic of Türkiye, 02.10.2020 and numbered 540702.
8 Letter of the Ministry of Treasury and Finance of the Republic of Türkiye, dated 04.02.2022 and numbered 936829.
9 Letter of the Ministry of Treasury and Finance of the Republic of Türkiye, dated 30.09.2021 and numbered 603399.
10. Letter of the Ministry of Treasury and Finance of the Republic of Türkiye, dated 22.06.2020 and numbered 335017.
11 Letter of the Ministry of Treasury and Finance of the Republic of Türkiye, dated 09.07.2021 and numbered 386482.

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