Turkey pub­lishes in­dus­trial zones reg­u­la­tion

Dünya Executive - - BUSINESS BY LAW - BIRTURK AYDIN, PART­NER ESIN AT­TOR­NEY PART­NER­SHIP bir turk [email protected]

The Min­istry of In­dus­try and Tech­nol­ogy pub­lished the Reg­u­la­tion on In­dus­trial Zones in the Of­fi­cial Gazette on Au­gust 6, 2019. The Reg­u­la­tion con­tains de­tailed pro­vi­sions on the es­tab­lish­ment, man­age­ment and oper­a­tion of mixed/spe­cial­ized in­dus­trial zones, ex­clu­sive in­vest­ment sites and pri­vate in­dus­trial zones.

What’s New?

MIXED/SPE­CIAL­IZED IN­DUS­TRIAL ZONES

Spe­cial­ized in­dus­trial zones refers to re­gions uti­lized by advanced tech­nol­ogy sec­tors spec­i­fied in the gov­ern­ment’s devel­op­ment plans and op­er­at­ing in ar­eas such as in­for­ma­tion tech­nol­ogy, med­i­cal tech­nol­ogy and agro-in­dus­try. In that re­gard, the Reg­u­la­tion pro­vides de­tailed rules on the pro­ce­dures for the es­tab­lish­ment and dec­la­ra­tion of spe­cial­ized in­dus­try zones.

Ap­pli­ca­tion Process

Rel­e­vant in­sti­tu­tions and or­ga­ni­za­tions or man­age­ment com­pa­nies may ap­ply to the Min­istry for the es­tab­lish­ment of spe­cial­ized in­dus­try zones. The Min­istry may also carry out the rel­e­vant pro­ce­dures ex of­fi­cio for the es­tab­lish­ment of a spe­cial in­dus­try zone.

The ap­pli­cant pre­pares a fea­si­bil­ity re­port and applies to the Min­istry. Af­ter the Min­istry ap­proves the ap­pli­ca­tion, it con­ducts a site se­lec­tion as­sess­ment to de­ter­mine the area that meets the needs of a spe­cial­ized in­dus­trial zone.

The Min­istry re­ceives the opin­ions of the Min­istries of En­vi­ron­ment and Ur­ban­iza­tion, En­ergy and Nat­u­ral Re­sources, Agri­cul­ture and Forestry, Cul­ture and Tourism, Na­tional De­fense, Health, Trans­porta­tion and In­fra­struc­ture or the rel­e­vant mu­nic­i­pal­ity re­gard­ing the ar­eas where the site se­lec­tion stud­ies are con­ducted. If the Min­istry is not no­ti­fied of the rel­e­vant in­sti­tu­tion’s opin­ion within 30 days, the opin­ion is deemed in fa­vor of the area se­lected. How­ever, if there is al­ready an in­dus­trial area where the site se­lec­tion stud­ies are con­ducted that meets the needs of a spe­cial­ized zone, the Min­istry would only re­quire the Min­istry of En­vi­ron­ment and Ur­ban­iza­tion or the rel­e­vant metropoli­tan mu­nic­i­pal­ity’s opin­ion.

Af­ter the Min­istry de­ter­mines the area to be used for the in­dus­trial zone, a thresh­old anal­y­sis map and a site se­lec­tion re­port is pre­pared for the area.

Following the com­ple­tion of the site se­lec­tion, the Min­istry pre­pares a sum­mary eval­u­a­tion re­port and the rel­e­vant area is de­clared an in­dus­trial zone upon the Pres­i­dent’s decision.

Ap­pli­cant and In­vestors’ Obli­ga­tions

The in­dus­trial zones can­not be used for any pur­poses other than carrying out so­cial, ad­min­is­tra­tive, lo­gis­tics, com­mer­cial or any other ac­tiv­i­ties nec­es­sary for the in­vest­ments made in that area.

The ap­pli­cant or, in case the Min­istry con­ducts the rel­e­vant pro­ce­dures ex of­fi­cio to de­clare an in­dus­trial zone, the rel­e­vant Cham­ber of In­dus­try or Cham­ber of Com­merce and In­dus­try must es­tab­lish a man­age­ment com­pany be­fore the ap­pli­ca­tion is sub­mit­ted to the Pres­i­dent.

The man­age­ment com­pany will be re­spon­si­ble for manag­ing and op­er­at­ing the in­dus­trial zone, making the nec­es­sary pay­ments for the in­fra­struc­ture and su­per­struc­ture of the zone and per­form­ing other du­ties stip­u­lated in the Reg­u­la­tion.

Min­istry Al­lowance

Af­ter the dec­la­ra­tion of the in­dus­trial zone, the Min­istry will al­lo­cate an al­lowance for the in­vest­ment pro­gram in the zone. The Min­istry’s al­lowance will cover ex­pro­pri­a­tion costs, in­fra­struc­ture costs and other ex­penses listed in the Reg­u­la­tion re­gard­ing the zone.

If the Min­istry deems it appropriat­e, the manag­ing com­pany or in­vestors may also cover these ex­pen­di­tures.

Ex­pro­pri­a­tion, Servi­tude and Uti­liza­tion Per­mit

Pri­vately owned im­mov­able prop­er­ties in the in­dus­trial zone will be ex­pro­pri­ated. Im­mov­able prop­er­ties that be­long to the Trea­sury and state-owned ar­eas will be as­signed as in­dus­trial zones.

The man­age­ment com­pany or in­vestors will be granted a servi­tude of 49 years for the ex­pro­pri­ated prop­er­ties. For state-owned im­mov­able prop­er­ties, a uti­liza­tion per­mit for a pe­riod of 49 years will be granted to the man­age­ment com­pany or in­vestors.

Zon­ing and Sub­di­vi­sion Plans

The Min­istry or the man­age­ment com­pany will pre­pare a zon­ing plan for the in­dus­trial zone in ac­cor­dance with the pro­vi­sions of the Reg­u­la­tion. Af­ter the Min­istry ap­proves the zon­ing plan, it will be pub­lished on the Min­istry’s of­fi­cial web­site for a week and the stake­hold­ers will be able to ob­ject to the plan within the seven-day pub­li­ca­tion pe­riod. The Min­istry or the man­age­ment com­pany will then pre­pare sub­di­vi­sion plans for the or­ga­ni­za­tion of the lands and prop­er­ties. Sim­i­larly, the sub­di­vi­sion plans the Min­istry ap­proves will be pub­lished on the Min

istry’s of­fi­cial web­site for a week and the stake­hold­ers will be able to ob­ject to the sub­di­vi­sions plan within the seven-day pub­li­ca­tion pe­riod.

Zon­ing and sub­di­vi­sion plans, in­fra­struc­ture and su­per­struc­ture plans, and the rel­e­vant li­censes and per­mits will be sub­ject to the Min­istry’s ap­proval and su­per­vi­sion. The Min­istry will grant the work­place open­ing and oper­a­tion li­cense and the rel­e­vant in­sti­tu­tions will grant other per­mits, au­tho­riza­tions or li­censes within 15 days. In ad­di­tion, the man­age­ment com­pany and the in­vestors will be ex­empt from pay­ing le­gal fees re­gard­ing li­censes and per­mits.

In­vestor Per­mit

In­vestors will­ing to in­vest in the in­dus­trial zone must ap­ply to the Min­istry, ei­ther in per­son or through the man­age­ment com­pany, for their pre-allocation re­quests.

Af­ter the Min­istry ap­proves the in­vestor’s pre-allocation re­quest, the in­vestor must ob­tain an en­vi­ron­men­tal im­pact as­sess­ment (EIA) re­port re­gard­ing its op­er­a­tions in the in­dus­trial zone. The in­vestor must then ob­tain an “EIA Pos­i­tive” or “EIA Not Re­quired” decision from the Min­istry of En­vi­ron­ment and Ur­ban­iza­tion re­gard­ing its EIA re­port. In ad­di­tion, the in­vestor must also pay the fee set forth in the Reg­u­la­tion to the Min­istry. Af­ter the in­vestor ful­fills all of these requiremen­ts un­der the Reg­u­la­tion, upon the Min­istry’s opin­ion, the Min­istry of En­vi­ron­ment and Ur­ban­iza­tion will grant a servi­tude or uti­liza­tion per­mit to the in­vestor.

EX­CLU­SIVE IN­VEST­MENT ZONES

Ex­clu­sive in­vest­ment zones re­fer to ar­eas al­lo­cated for in­vest­ments in the pri­mary sec­tors stated in the devel­op­ment plans or in­vest­ments re­lat­ing to high or medium-high tech­nolo­gies that meet the Min­istry’s cri­te­ria. The ap­pli­ca­tion pro­ce­dures fol­lowed for spe­cial­ized in­dus­trial zones will be largely ap­pli­ca­ble to the ex­clu­sive in­vest­ment zones.

A. The Ap­pli­ca­tion Process and Ad­di­tional Requiremen­ts

Do­mes­tic or for­eign per­sons wish­ing to make an ex­clu­sive in­dus­trial in­vest­ment must ap­ply to the Min­istry and ob­tain a fea­si­bil­ity re­port. The Min­istry must carry out a site se­lec­tion study re­gard­ing the ap­pli­ca­tion and pre­pare a sum­mary as­sess­ment re­port. The ap­pli­cant must ob­tain an “EIA Pos­i­tive” or “EIA Not Re­quired” decision from the Min­istry of En­vi­ron­ment and Ur­ban­iza­tion in line with the EIA leg­is­la­tion. Fi­nally, the ap­pli­ca­tion will be sub­mit­ted for the Pres­i­dent’s ap­proval. For ex­clu­sive in­vest­ment zone ap­pli­ca­tions, there are ad­di­tional requiremen­ts to be fulfilled such as having a fixed in­vest­ment undertakin­g amount­ing to TRY 280,000,000 in place or using high­tech for the op­er­a­tions in the in­vest­ment zone.

The ap­pli­cant must also es­tab­lish a joint stock com­pany for the man­age­ment and oper­a­tion of the in­vest­ment zone be­fore the Pres­i­dent makes a decision on the dec­la­ra­tion of the in­vest­ment zone.

B. Servi­tude and Uti­liza­tion Per­mit

The ap­pli­cant will be granted a servi­tude or a uti­liza­tion per­mit for a pe­riod of 49 years for the area de­clared an ex­clu­sive in­vest­ment zone, pro­vided that the ap­pli­cant pays to the Min­istry the amount de­ter­mined by the Pres­i­dent, which is less than 0.5 per­cent of the fixed in­vest­ment amount.

C. Zon­ing and Sub­di­vi­sion Plans, Li­censes and Per­mits

The pro­vi­sions on the zon­ing and sub­di­vi­sion plans re­gard­ing spe­cial­ized in­dus­trial zones will be largely ap­pli­ca­ble for the ex­clu­sive in­vest­ment zones. The rel­e­vant li­censes and per­mits to be ob­tained for the ex­clu­sive in­vest­ment zones will be sub­ject to the Min­istry’s ap­proval and su­per­vi­sion. The in­vestors will also be ex­empt from pay­ing the le­gal fees for the li­censes and per­mits.

PRI­VATE IN­DUS­TRIAL ZONES A. Ap­pli­ca­tion Process and Ad­di­tional Requiremen­ts

In ac­cor­dance with the Reg­u­la­tion, real or le­gal per­sons own­ing at least 51 per­cent of an area or hold­ing a servi­tude or uti­liza­tion per­mit for at least 51 per­cent of that area may ap­ply to the Min­istry for the dec­la­ra­tion of the area as a pri­vate in­dus­trial zone.

The pro­ce­dures re­lat­ing to the preparatio­n of a fea­si­bil­ity re­port and con­duct­ing site se­lec­tion for the spe­cial­ized in­dus­trial zones and ex­clu­sive in­vest­ment zones will be largely ap­pli­ca­ble for the pri­vate in­dus­trial zones. If there is an in­dus­trial fa­cil­ity es­tab­lished in the rel­e­vant area, the zon­ing plans and oc­cu­pancy per­mit ap­proved and ob­tained from the rel­e­vant in­sti­tu­tions must also be sub­mit­ted dur­ing the ap­pli­ca­tion.

The Min­istry seeks ad­di­tional requiremen­ts for the pri­vate in­dus­trial zone ap­pli­ca­tion: the area must be the min­i­mum size stip­u­lated in the Reg­u­la­tion or the ap­pli­cant must have a new in­vest­ment undertakin­g amount­ing to TRY 570,000,000 in place for the area.

Af­ter the Min­istry com­pletes the site se­lec­tion, it will pre­pare a sum­mary eval­u­a­tion re­port and the ap­pli­cant will ob­tain an “EIA Pos­i­tive” or “EIA Not Re­quired” decision from the Min­istry of En­vi­ron­ment and Ur­ban­iza­tion. The ap­pli­ca­tion will be sub­mit­ted to the Pres­i­dent for his ap­proval.

The ap­pli­cant must es­tab­lish a joint stock com­pany for the man­age­ment and oper­a­tion of the area be­fore the Pres­i­dent makes his decision and de­clares the area a pri­vate in­dus­trial zone. How­ever, this re­quire­ment will not be ap­pli­ca­ble for ar­eas de­clared pri­vate in­dus­trial zones be­fore Au­gust 6, 2019.

The pri­vate in­dus­trial zones will not be used for pur­poses other than so­cial, ad­min­is­tra­tive, lo­gis­tic, com­mer­cial and sim­i­lar ac­tiv­i­ties nec­es­sary for the in­vest­ments in the area.

B. Servi­tude and Uti­liza­tion Per­mit

The Min­istry will grant the ap­pli­cant a servi­tude or a uti­liza­tion per­mit for the pri­vate in­dus­trial area for a pe­riod of 49 years.

C. Zon­ing Plan and Sub­di­vi­sion Plan

The pro­vi­sions on the zon­ing and sub­di­vi­sion plans re­gard­ing the spe­cial­ized in­dus­trial zones will be largely ap­pli­ca­ble for the pri­vate in­dus­trial zones.

D. Li­censes and Per­mits

Li­censes and per­mits to be ob­tained for the pri­vate in­dus­trial zones will be sub­ject to the ap­proval and su­per­vi­sion of the Min­istry, and in­vestors will be ex­empt from pay­ing the le­gal fees for these li­censes and per­mits. The per­mits, au­tho­riza­tions and li­censes pre­vi­ously ob­tained for in­vest­ments in the pri­vate in­dus­trial zones will re­main in effect. Other per­mits, ap­provals and li­censes to be ob­tained for the in­vest­ments for which they are ap­proved by the Min­istry will be is­sued by the rel­e­vant in­sti­tu­tions within fif­teen days.

Con­clu­sion

The Min­istry con­tin­ues to take leg­isla­tive steps to sup­port the in­dus­trial sec­tor and im­prove lo­cal pro­duc­tion ac­tiv­i­ties. Ac­cord­ingly, the Reg­u­la­tion re­vised the ap­pli­ca­tion pro­ce­dures for the es­tab­lish­ment of in­dus­trial zones.

Newspapers in English

Newspapers from Turkey

© PressReader. All rights reserved.