Evlik Tarım - Licensed Warehousing General Information

Licensed Warehousing General Information

Licensed Warehousing General Information

The Agricultural Products Licensed Warehousing Law No. 5300, which aims to store the standards of standardized, basic and processed agricultural products such as cereals, legumes, oilseeds, cotton, hazelnuts, olives, olive oil and dried apricots to be stored in the warehouses of licensed warehouse enterprises under safe and healthy conditions and to make the trade of products through the product stocks issued by these enterprises, has been published in the Official Gazette on 17/02/2005.

Based on this Law, 4 regulations and 6 manifests have been issued so far. They are stated below:

Regulations

• Agricultural Products Licensed Warehousing Regulation
• Licensed Warehousing Compensation Fund Regulation,
• Electronic Product Voucher Regulation,
• Regulation on Licensing, Operation and Control of Authorized Classifiers

Manifests

• Cereals, Legumes and Oil Seeds Licensed Warehouse Manifest
• Cotton Licensed Warehouse Manifest
• Hazelnut Licensed Warehouse Manifest
• Olive Licensed Warehouse Manifest
• Olive Oil Licensed Warehouse Manifest
• Dried Apricot Licensed Warehouse Manifest.

On the other hand, the Article 53 of the Law of The Union of Chambers and Commodity Exchanges of Turkey and Chambers and Commodity Exchanges Law with the No.5174 regulating the trade of the products suitable for storage by means of the commodity vouchers representing these products in commodity exchange operating as an incorporated company was put into force by being published in the Official Gazette on 01.06.2004.

Based on this Law, 2 regulations have been enacted by this time. They are indicated below:

- Regulation on the Procedures and Principles of Establishment, Operation and Audit of Commodity Exchanges
- Regulation of Alivre and Futures Purchase in Commodity Exchanges

Targets of licensed warehousing system are;

1- Preventing the price decreases caused by the accumulation of agricultural products in harvesting periods and balancing the market,
2- Providing the small-scale farmers and product owners, especially those who are in a shortage of finance, with the loans and financing from banks through the product receipts they receive in exchange for the products they give to licensed warehouses,
3- Trading of agricultural products through the products whose standards are accepted by the public, encouraging the production of high quality, establishing a safe market,
4- Registration of agricultural products trade,
5- Achieving the current agricultural reform which is carried out in our country and increasing private sector participation in agricultural products trade,
6- Minimization of state interventions in production and pricing; passing on significant savings from high expenditures made in this area, abstaining from interventions breaking the price formation and free market.
7- Obtaining a stable and higher income level with a system that is easily marketable, well maintained and minimized transport costs for producers of agricultural products,
8- Providing an alternative investment tool for investors in foreign exchange, stock, interest and etc.
9- Straightforward procurement of products whose quality have been determined and whose price stability has been assured by our merchants and businessmen who are involved in trade,
10- Trade of agricultural products by means of product notes or electronic product notes regardless of the need for showing and delivering physical goods and samples,
11- Transition to forward transactions and option markets in agricultural products with the standardized product and licensed storage system,
12- Creation of new business areas in terms of product storage, banking and insurance sector,
13- It is aimed to play an important role in the trade of agricultural products in the Middle East, Balkans, Turkic Republics and Asia area where our country is located.

Tax Exceptions, Warehouse Rent Support,

Investment Credit Support and State Aid

1 - Tax Exceptions

Products bought and sold through electronic product notes by being stored in licensed warehouses until 31.12.2018;

a. From the agricultural withholding tax (2%);
b. From profit or income / corporation tax (20%),
c. VAT (% 1),

2 - Licensed Warehouse Rental Support

Stored in licensed warehouses according to the appendix of Cabinet Decision published in the Official Gazette dated October 16, 2014 and numbered 29147 (Decision Number: 2014/6849), ‘Decision on the Payment of the Rent Support in the case of the Storage of Agricultural Products in Warehouses Operating by Obtaining License under the Licensed Warehousing Law No. 5300;

Warehouse rent support is provided for 50% of the rent fees to be approved by the Ministry of Customs and Trade not exceeding 10 TL / Ton for Hazelnut, Olive, Olive Oil, Dried Apricot, Pistachio, Dried Figs;