News:

A section of Hukuki Net - Turkish Law site in English Language (Ingilizce Hukuk, Ingilizce Kanunlar, mevzuat ve ingilizce hukuk forumu)

Main Menu
Menu

Show posts

This section allows you to view all posts made by this member. Note that you can only see posts made in areas you currently have access to.

Show posts Menu

Topics - admin

#61

ANNEX: 3
STANDARD PREQUALIFICATION SPECIFICATION FOR THE WORKS PROCUREMENTS THROUGH THE RESTRICTED TENDER PROCEDURE

I -   SUBJECT MATTER OF PROCUREMENT

Article 1- Information About the Contracting Entity
1.1. Contracting Entity's;
a)  Name  :.................................................................................................
b)  Address:...
c)  Phone Number:...
d)  Fax Number:...
            e)  E-mail:..................................................................................................
f)  Name- Surname/ Title of the Contact Person: ....................................................................

1.2. The candidates may get information about the prequalification by contacting the contact persons from the addresses and numbers given above.

Article 2- Information about the subject works of procurement
Works, which constitute the subject matter of the procurement;
a)   Name:...
b)   Investment project no/code:.................................................................................................
c)   (Physical) Quantity and type:...............................................................................................
d)   Place of performance:...
e)   Other information (if any) about the works: ....................................................

Article 3-Information about the procurement
Procurement procedure: Restricted Tender Procedure

Article 4- Information about evaluation of prequalification
Information about evaluation of prequalification:
a)Place of evaluation of prequalification: ............................................................
b)Date of evaluation of prequalification: .............................................................
c)Time of evaluation of prequalification: ............................................................
d)Place of meeting of tender commission: ...........................................................

Article 5- Viewing and obtaining the prequalification document
5.1. The prequalification document may be viewed at the address specified above free of charge. However, those who shall apply for prequalification shall be liable to purchase the prequalification document approved by the Contracting Entity.
a)The place where the prequalification document can be viewed:.......................................
b)The place where the prequalification document can be purchased:.....................................
c)Sales price of prequalification document (including tax if any): ..............................

5.2. The prequalification document shall be provided along with a memorandum indicating the documents in the content. The candidate shall check whether the documents comprising the prequalification document are true copies and the documents are complete. The Contracting Entity shall receive the declaration of the candidate indicating that he has received all true copy documents comprising the prequalification document with a signature affixed on the said memorandum.
5.3. The candidate shall be deemed to accept the conditions and rules within the prequalification document by purchasing the said document.

5.4. (Annex: 08/06/2004 – 25486 Official Gazette / Art. 48) If the papers comprising the prequalification document are issued and sold to the candidates in other languages besides Turkish, the Turkish text shall be taken as basis in understanding and interpretation of the prequalification documents as well as the disputes that may arise between the Contracting Entity and candidates.

Article 6- The place where the prequalification applications shall be submitted, deadline date and time of application
6.1. The place where the prequalification application shall be submitted, deadline date and time of application:
a)  The place where the prequalification applications shall be submitted:.................................
b)  Deadline date of application (date of evaluation of prequalification):..............................
c)  Deadline time of application (time of evaluation of prequalification):.............................

6.2. The prequalification documents can be submitted to the place specified above until the deadline date and time of application or sent via registered and prepaid mail. The prequalification documents that are not received by the Contracting Entity until the deadline time of application shall not be taken into consideration.

6.3. The applications for prequalification submitted to or received by the Contracting Entity shall not be withdrawn for any reason other than for issuing addendum in accordance with Article 19 of this Specification hereby.

6.4. In the event that the date determined for the evaluation of prequalification is holiday, the evaluation for qualification shall be made on the next business day at the time specified above at the same place, and the applications for prequalification submitted up to that time shall be accepted.

6.5. The evaluation of prequalification shall be held at the time specified above in the event that working hours change later.

6.6. National time setting of Turkish Radio Television Authority (TRT) shall be taken as basis for time settings.

Article 7- Viewing and obtaining the tender document
7.1. The tender document may be reviewed at the address specified above free of charge, and the candidates can also purchase the tender document at the stage of prequalification. Furthermore, the candidates found qualified as a result of evaluation of prequalification shall be notified where and on which terms the tender document can be obtained with a letter of invitation.

7.2.
   a) The place where the tender document can be reviewed: ..............................
   b) The place where the tender document can be purchased: .............................
   c) The sales price of tender document (including tax): ...................................

Article 8- Scope of prequalification document
8.1 The prequalification document comprises of the following documents:
a)Prequalification Specification
b)    Standard forms:
   .......................................................................
   ......................................................
8.2. In addition, addenda to be published by the Contracting Entity as well as the written clarifications to be made by the Contracting Entity upon the written request of the candidates shall be an integral part of the prequalification documents in accordance with the relevant provisions of this Specification hereby.

8.3. The candidates shall be liable to carefully examine the content of all document listed above. The candidate shall be liable in the event that the candidate does not fulfill the requirements of application for prequalification. The applications that are not in compliance with the requirements set forth in the prequalification document and the procedure described in the prequalification document shall not be taken into consideration.

II. MATTERS CONCERNING APPLICATION FOR PREQUALIFICATION

Article 9- Documents required for application for prequalification and prequalification criteria
9.1. The candidates are required to submit the following documents within their applications for prequalification:
   a) Declaration of address for notification as well as phone and, if any, fax number and e-mail address for contact,
   b) Certificate of Chamber of Commerce and/or Industry or Profession registered as per the legislation;
   1) In the event that the candidate is a physical body, the certificate received within the year when the first announcement with regard to the procurement is made and indicating registration to the Chamber of Commerce and/or Industry or Profession,
   2) In the event that the candidate is a corporate body, the certificate received from the registered Chamber of Commerce and/or Industry within the year when the first announcement with regard to the procurement is made and indicating the registration of the corporate body,
   c) Signature statement or signature circular indicating the authority of the candidate to make application for prequalification,
   1) Signature statement certified by the notary public in the event that the candidate is a physical body,
2) Original or notarized copy of Trade Registers Gazette indicating the shares of the shareholders of the company and their position within the company or the documents evidencing such issues as well as the signature circular of the corporate body certified by the notary public in the event that the candidate is a corporate body,
d) (Amended: 08/06/2004 – 25486 Official Gazette/ Art. 49) Written letter of commitment evidencing that the candidate is not in the cases listed under items (a), (b), (c), (d), (e), (g) and (i) of Article 13 of this Specification hereby.
e) Application Letter, form and content of which are described in the Specification,
f) Qualification Certificates specified in Articles (9.2) and (9.3) of the Specification, and form and content of which are stipulated in Regulation on Implementation of Works Procurements,
g) If the candidate is represented in the procurement, the power of attorney indicating that the representative is authorized to participate in the procurement for and on behalf of the candidate and signature statement certified by the notary public,
h) In the event that the candidate is a joint venture, the joint venture statement or consortium declaration, form and content of which are described in the Specification hereby,
i) Certificates set forth in the Regulation on Implementation of Works Procurements evidencing that the tenderer is "a domestic tenderer" if so specified in Articles 10 and 11 of this Specification,
j) Certificate indicating that the prequalification document has been purchased,
k) (Annex: 08/06/2004 – 25486 Official Gazette / Art. 49) The certificates indicated in the last paragraph of Article 34 of Regulation on Implementation of Works Procurements if it is required under "VI- MISCELLANEOUS PROVISIONS" of this Specification,
l) (Annex: 08/06/2004 – 25486 Official Gazette / Art. 49) Letter of commitment stating that that the work experience certificate shall not be made available to another corporate body if the work experience submitted by the tenderer, who is a corporate body, belongs to the shareholder of the same corporate body holding more than half of the shares,
m) (Annex: 08/06/2004 – 25486 Official Gazette / Art. 52) The declaration concerning the corporate bodies, of which the tenderer is partner or shareholder.

(Amended: 08/06/2004 – 25486 Official Gazette / Art. 49) In the case of joint ventures, each partner shall be liable to submit the documents listed under items (b), (c), (d), (i) and (m) separately.

9.2. The documents required for the economic and financial qualification and the criteria that these documents have to meet1
9.2.1-...
9.2.2-...
9.2.3-...
...
9.3. The documents required for the professional and technical qualification and the criteria that these documents have to meet.
9.3.1-...
9.3.2-...
9.3.3-...
   ...............................................................................................................
9.4. The works that will be accepted as similar works are specified below: .............................2
........................................................................................................................
........................................................................................................................
........................................................................................................................

9.5. ..................................................................................................................3
........................................................................................................................
........................................................................................................................
........................................................................................................................

9.6. Way of Submitting Documents (Amended: 08/06/2004 – 25486 Official Gazette / Art. 49)
9.6.1- The Candidates shall be required to submit the originals or notarized copies of the documents listed above.
9.6.2- The notarized documents have to bear the expression "this is a true copy" certifying the true copy of the original document, otherwise the documents certified in witness of copies or photocopies of the same with the expression "this is the same copy of the document issued" or any expression with the same meaning shall be rejected.

9.6.3- The Candidates may also, instead of originals, include into their tenders the copies bearing the expression "Original copy seen by the Contracting Entity" or any expression with the same meaning after the Contracting Entity sees the same prior to the procurement.

9.6.4- The documents except for the ones listed under Article 9.6.4.1 hereunder that will be submitted by the domestic or foreign candidates have to be issued according to the legislation of the respective country and approved by the Consulate of the Republic of Turkey in the country where it is issued or the Turkish Ministry of Foreign Affairs. However, official documents issued from the countries that are party to the Convention on Abolishing the Obligation to Certify Foreign Official Documents and included in the scope of Article 1 of this convention shall be exempted from the approval of the Consulate of the Republic of Turkey in the country where it is issued or the Turkish Ministry of Foreign Affairs provided that they bear the "Apostille" seal. Provided that there is an agreement or convention containing provisions that require certain proceedings in respect of certifying the signature, seal or stamp on the documents between the Republic of Turkey and any other state or states, the approval of documents issued from such countries shall be subject to the provisions of this agreement or convention.

9.6.4.1....................................................................3.13

9.6.5- In the event that the Turkish translations of the documents are required in this Specification, translations of official documents issued abroad as well as the documents listed in the prequalification document by the Contracting Entity have to be approved by the Consulate of the Republic of Turkey or the Turkish Ministry of Foreign Affairs. Translations of documents that bear the seal of Apostille as well as the translations of documents that are not required to be approved by the Consulate of the Republic of Turkey or the Turkish Ministry of Foreign Affairs must be rendered by the sworn translators and notarized.
9.6.6- The documents and translations thereof issued by the certification bodies accredited by the national accreditation bodies included in the International Accreditation Forum for Mutual Recognition Agreement shall be exempted from the approval by the Consulate of the Republic of Turkey in the country where it is issued or the Turkish Ministry of Foreign Affairs provided that it is confirmed with a letter obtained from the Turkish Accreditation Authority that such bodies have been duly accredited according to the international rules.

Article 10- Openness of procurement to foreign candidates4
...
...
...

Article 11- Application of price advantage in favor of domestic tenderers5
...
.........   ...
...

Article 12- Those that cannot participate in the procurement
12.1. Those listed below shall in no way be able to participate in the Procurement directly or indirectly, or as a subcontractor for themselves or on behalf of third persons;
   a) Those that are prohibited temporarily or permanently to participate in public procurements as per Laws No. 4734 and 4735, and provisions of other laws, and those charged with the offenses within the scope of Anti-Terrorism Law No. 3713 and organized crimes.
b) Those that have gone into false bankruptcy as determined by the relevant authorities.
c) Authorized persons of the Contracting Entity in procurement and those persons employed in the boards having such authority.
d) The persons in charge of preparing, executing, concluding and approving any procurement procedures in relation to the work which is the subject of this procurement.
e) Wives and close relatives up to third generation as well as relatives–in–law up to second generation, and adopted children of the persons specified in paragraphs (c) and (d).
f) Partners and companies of the persons specified in paragraphs (c), (d) and (e) (excluding the incorporated companies in which such persons are not within the Board of Directors or do not have more than 10% of the capital).
g) Candidates of the foreign countries determined pursuant to the resolutions of the Council of Ministers as per sub-item 8 of paragraph (b) of Article 53 of Law No. 4734.

12.2. The contractors that provide consultation services in relation to the works, which constitute the subject of the procurement, shall not be able to participate in the procurement. This prohibition shall be applicable for the companies in partnership and management affiliation as well as the companies, which hold more than half of the capital of such companies.

12.3. Furthermore, any bodies such as foundations, associations, unions and fund under the body of the Contracting Entity or established for any reason related to the Contracting Entity as well as the companies that are partner to these organizations cannot participate in the procurement.

12.4. The candidates that participate in the procurement irrespective of the prohibitions above shall be disqualified from the procurement and the respective bid bonds shall be registered as revenue. Furthermore, if the contract is awarded without determining the case at the stage of consideration of tenders submitted, the relevant performance bond shall be registered as revenue and the procurement shall be cancelled.

Article 13- Reasons of exclusion from the procurement
The candidates that are in the following cases shall be excluded from the procurement if such situations are determined;
a) Candidates that go into bankruptcy, that are in the process of dissolution, whose transactions are executed by a court, that declare concordat, that suspend works or that are in similar situations as per the legislative provisions applicable in their own countries.
b) Candidates whose bankruptcy has been declared, for whom compulsory dissolution is resolved, that are under the management of a court due to their debts to the creditors or that are in similar situations as per the legislative provisions applicable in their own countries.
c) Candidates that have any outstanding debt due to social security premiums as per the legislative provisions of Turkey and those applicable in their own countries.
d) Candidates that have any outstanding debt due to taxes as per the legislative provisions of Turkey and those applicable in their own countries.
e) Candidates that are charged with any offense due to their business activities within five (5) years prior to the date of procurement (evaluation of prequalification).
f) Candidates that are proved to act against business or professional ethics during the performance of works for the authority which holds the procurement within five (5) years prior to the date of procurement (evaluation of prequalification).
g) Candidates that are prohibited against any business activity by the registered chamber as per the relevant legislation by the date of procurement (evaluation of prequalification).
h) Candidates that do not furnish the data and documents specified in this Article or that furnish misleading data and/or counterfeit documents.
i) Candidates that participate in the procurement even though they are prohibited to participate in the procurement pursuant to Article 12 of the Specification.
j) Candidates that are determined to enter into prohibited deeds and actions as specified in Article 14 of the Specification.

Article 14- Prohibited acts and behaviors
14.1. It is prohibited to enter into the following acts and behaviors in the procurement process:
a) To plot mischief or attempt to do so in procedures related to the procurement through trick, promise, threat, use of influential forces, false competition, agreement, corruption, bribe or other means.
b) To drift the candidates into hesitation, to hinder participation, to offer or encourage agreements with the candidates, to enter into actions affecting competition or resolution of the tender commission.
c) To issue, use counterfeit documents or guarantees, and attempt to such actions.
d) To submit more than one tender personally or by proxy directly or indirectly for himself/ herself or on behalf of others.
e) To participate in the procurement even though the candidate is prohibited to participate as per Article 12 of the Specification.

14.2. Candidates that enter into the said prohibited deeds or actions shall be subject to the provisions in Chapter Four of Law No. 4734 according to the nature of such act and behavior.

Article 15- Expenses for application for prequalification
All costs arising from the preparation and submittal of the applications for prequalification shall be borne by the candidates. The Contracting Entity cannot be held liable for such costs incurred by the candidates irrespective of the progress and conclusion of the procurement.

Article 16- Visiting the place of work
16.1. It shall be under the responsibility of the tenderer to obtain all necessary information to visit the place and surrounding areas of the work, make inspections, prepare tenders and enter into contracts. All costs arising from visiting the place and surrounding areas of work shall be borne by the tenderer.

16.2. The tenderer shall be deemed to have information about the type and nature of work, climatic conditions, the activities and the quantity and type of materials to be used as necessary for performance of the work, access to the workplace and the necessary items to establish the site in respect of cost and time, and to learn everything necessary in relation to the risks that may affect the tender, extraordinary cases and similar issues.

16.3. The contracting entity shall allow the people to access to the building and/or land where the work shall be carried out when such a request is made for visiting the place of work.

16.4. In evaluation of tenders, it shall be assumed that the tender has visited the place of work and prepared the tender accordingly.

Article 17- Date of work commencement and completion
17.1. The work shall commence within ................... (in figures and words) ....................... calendar days following the notification of the proceed to work to the contractor or the address indicated for notifications by the Contracting Entity following the execution of the contract (in respect of works subject to registration by Court of Accounts, following such registration).

17.2. The duration of work shall be ..................... (in figures and words) ....................... calendar days following the hand-over of the site.

17.3. The days when works cannot be carried out scientifically have been taken into account in calculation of this period. Therefore, the contractor cannot claim extension of time on the grounds that he has not carried out works during such period.

Article 18- Clarification in the prequalification document
18.1. The candidates shall be able to request a clarification to be made with regard to the points they need in the prequalification document with a written application until twenty (20) days prior to the deadline date of submitting applications at the stage when the applications are prepared. The requests for any clarification following this date shall not be taken into consideration by the Contracting Entity.

18.2. In the event that the request for such a clarification is approved, the clarification by the Contracting Entity shall be sent in writing to all candidates that purchase the prequalification document until the said date with a registered and prepaid letter or delivered personally against signature. This written clarification by the Contracting Entity shall be made to ensure that all candidates are informed at least ten (10) days prior to the deadline date of submitting applications.

18.3. The clarification shall cover the description of the problem and detailed answers of the Contracting Entity. The identity of the candidate that requests for a clarification shall not be disclosed.

18.4. The written clarifications shall be given to the candidates who receive the prequalification document after the day when the clarification is made within the prequalification document.

Article 19- Amendment to prequalification document
19.1. It is essential that there is not any amendment to the prequalification document following the announcement. However, in the event that substantial or technical mistakes or deficiencies that may adversely affect the preparation of applications or performance of work are determined by the Contracting Entity or notified in writing by the candidates, an amendment may be made to the prequalification document by issuing an addendum.

19.2. The said addendum shall be sent to all candidates who purchase the prequalification document in writing in a registered and prepaid letter or delivered in hand in return for a signature, and the candidates shall be ensured to be notified at least ten (10) days prior to the deadline date of application.

19.3. In the event that additional time is needed to prepare applications for prequalification due to such an amendment, the Contracting Entity may postpone the date of procurement for maximum twenty (20) days only once with an addendum. It shall be continued to sell the prequalification documents and receive the tenders during the term of postponement.

19.4. In the event that an addendum is issued, the candidates that submit their applications for prequalification before such an amendment shall be allowed to withdraw their former applications and submit their new applications.

Article 20- Freedom of the Contracting Entity to cancel the procurement before the time of evaluation of prequalification
20.1. When deemed necessary by the Contracting Entity or in the event that the points which hinder the evaluation of prequalification and impossible to remedy are determined in the prequalification document, the procurement may be cancelled before the deadline time of application.

20.2. In this case, the cancellation of the procurement shall be notified to the candidates indicating the reason of such cancellation. The candidates that submit their applications until such time shall be informed about the cancellation of the procurement separately.

20.3. In the event that the procurement is cancelled, all applications submitted shall be deemed rejected and such applications shall be returned to the candidates without opening them.

20.4. The candidates shall not be entitled to claim any right against the Contracting Entity due to the cancellation of the procurement.

Article 21- Joint ventures
21.1. More than one physical body or corporate body shall be able to submit applications for prequalification through establishing a joint venture.

21.2. Candidates that shall submit applications for prequalification through establishing a joint venture shall submit a Joint Venture Statement, an example of which is enclosed, in which the pilot partner within the joint venture is specified, together with the applications for prequalification.

21.3. In the event that a joint venture is awarded the Contract, the respective joint venture shall be requested to submit the joint venture contract certified by a notary public before signing the Contract.

21.4. The Joint Venture Agreement (Joint Venture Statement) and Contract shall include the provision that physical bodies and corporate bodies comprising the joint venture shall be liable jointly and successively to perform the contract.

21.5. The pilot partner shall have the majority of shares in the joint venture. The percentage of share of the partners shall be indicated in the Joint Venture Agreement (Joint Venture Statement) and Contract.

Article 22- Consortiums6
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................

Article 23- Language of application for prequalification7
........................................................................................................................
........................................................................................................................

IV- EVALUATION OF PREQUALIFICATION AND INVITATION FOR PROCUREMENT

Article 24- Submitting the documents of application for prequalification
24.1. The letters of application of the candidates that will apply for prequalification as joint venture must be signed by all partners or the duly authorized persons.

24.2. The letter of application and all documents required in this Specification shall be put into an envelope (or package) enclosed to the letter of application. Name, surname or trade title of the tenderer, full address for notification, the work related to the application and full address of the Contracting Entity holding the procurement shall be written on this envelope. The adhesive part of the envelope (or package) shall be signed, sealed or stamped by the tenderer.

24.3. The applications for prequalification shall be submitted to the Contracting Entity (the office where the applications for prequalification shall be submitted) in return for receipts with order numbers until the deadline time of application stipulated in the prequalification document. The applications for prequalification submitted after this time shall not be accepted, but returned to the candidates without opening them.

24.4. Applications for prequalification may be submitted by registered and prepaid mail as well. The applications for prequalification sent by mail shall reach to the Contracting Entity until the time specified in the prequalification document. The time of receipt of the applications for prequalification, which shall not be put into effect due to delays in mail, shall be written into a minute and shall not be taken into consideration.

24.5. In the event that the duration of submitting applications for prequalification is extended with an addendum, all rights and liabilities of the Contracting Entity and candidates with regard to the deadline time of application shall be deemed extended until the new deadline date of application.

Article 25 – Receiving and opening the applications for prequalification
25.1. The applications for prequalification shall be submitted to the Contracting Entity (the office where the applications for prequalification shall be submitted to) until the deadline time of application indicated in this Specification hereby.

25.2. The following procedure shall be applicable for receiving and opening the tenders by the Tender Commission:

25.2.1. The number of applications for prequalification submitted until the deadline time of application shall be written into the minutes by the Tender Commission, and it shall be announced to the participants and then evaluation shall immediately be made.

25.2.2. The Tender Commission shall review the applications envelopes in order of receipt. Name, surname or trade title, full notification address of the candidate, the work related to the application, full address of the Contracting Entity holding the procurement on the envelope as well as the signature and seal (or stamp) of the candidate on the adhesive part of the envelope shall be checked in this review. The application envelopes that do not meet the said requirements shall be written into the minutes, and shall not be taken into consideration.

25.2.3. Then, the envelopes shall be opened in order of receipt in front of the participants together with the candidates. It shall be checked whether the documents of the candidates are complete, and the in compliance with the described procedure. The candidates whose documents are deficient or are not in compliance with the described procedure shall be written into the minutes. The candidates whose application envelopes are opened shall be revealed. The minutes related to these proceedings shall be signed by the Tender commission.

25.2.4. The rejection or acceptance of any application shall not be decided, and the documents comprising the application shall not be corrected and completed at this stage. The session shall be closed for the Tender Commission to evaluate the applications immediately.

Article 26- Evaluation of applications for prequalification
26.1. (Amended: 08/06/2004 – 25486 Official Gazette/ Art. 50) In evaluation of the applications, it shall firstly be decided that the applications of the candidates whose documents are deficient or are not in compliance with the procedure pursuant to Sub-Item 25.2.3 of this Specification hereby shall be disqualified from the evaluation process.

26.1.1. In the event that the documents that must be submitted within the application envelope as per this Specification and the annexes that must be provided pursuant to the related legislation are not furnished by the candidates, such deficient documents and annexes thereto shall not be completed.

26.1.2. However,

a) In the event that there is lack of information that does not have an effect to change the basis of the application in the documents submitted, the documents to remedy such lack of information;
b) The documents to remedy the lack of information that has the effect to cause hesitation concerning the content of the document and arising from the authorities, agencies or persons that issue the documents except for the compulsory factors that these documents must bear in the documents submitted by the candidates and issued other authorities, agencies or persons shall be completed within the due time.

26.1.3. If the documents submitted by the candidates within the period provided in respect of completing the lack of information are issued on a date later than the deadline date of application, these documents shall be accepted if the candidate evidences that he meets the requirements of application for prequalification as of the deadline date of application.

26.2. The tenders of the candidates whose documents are complete and whose tender letter and bid bond are in compliance with the procedure as a result of these proceedings shall be evaluated in detail. At this stage, it shall be reviewed whether the candidates meet the minimum qualification criteria demonstrating their capacity to perform the work, which constitutes the subject matter of procurement, and the requirements set forth in the prequalification document. The candidates that are found to meet the minimum qualification criteria as a result of the evaluation shall be qualified, and the candidates that are found not to meet the minimum qualification criteria shall be disqualified.

Article 27- Concluding the evaluation of prequalification
The tender commission shall decide on the evaluation of prequalification after completing such evaluation of prequalification. In this decision, the names/ trade titles of the candidates that make such application for prequalification, as well as the names/ trade titles of the candidates that are qualified and disqualified and the reasons of such disqualification shall be specified.

Article 28- Notification of results of prequalification and invitation to procurement
28.1. The reasons of disqualification shall be notified to the candidates that are not found qualified as a result of the evaluation of prequalification via registered and prepaid mail.

28.2. The letter of invitation to procurement shall be sent to all candidates that are found qualified as a result of the evaluation of prequalification. The letter of invitation shall include that the candidate is found qualified as a result of the evaluation of prequalification and where and at what price the tender document shall be purchased as well as the date and time of procurement.

Article 29- Cancellation of procurement
29.1. The procurement shall be cancelled when the number of candidates that can be invited to the procurement as a result of the evaluation of prequalification is less than five (5) or the number of tenderers that submit tender for the procurement is less than three (3).

29.2. If the procurement is cancelled, this shall be notified to all candidates.

29.3. The candidates cannot claim any right from the Contracting Entity for cancellation of the procurement.

Article 30- Settlement of disputes
30.1. All disputes arising during the process until the contract is executed and enforced shall be settled by Administrative Judiciary provided that rules related to the request for review in Article 54 and the subsequent Articles of Public Procurement Law No. 4734 are reserved.

30.2. The relevant provisions stipulated in the contract of work shall be applicable for any dispute arising from the implementation of the contract.

VI- MISCELLANEOUS PROVISIONS8
............................................................................................................
#62

ANNEX: 2
STANDARD ADMINISTRATIVE SPECIFICATION FOR THE WORKS PROCUREMENTS THROUGH THE OPEN TENDER PROCEDURE

I -   SUBJECT MATTER OF PROCUREMENT AND MATTERS CONCERNING SUBMITTING TENDERS

Article 1- Information About the Contracting Entity
1.1. Contracting Entity's;
a)  Name  :.................................................................................................
b)  Address:...
c)  Phone Number:...
d)  Fax Number:...
            e)  E-mail:..................................................................................................
f)  Name- Surname/ Title of the Contact Person: ....................................................................

1.2. The tenderers may get information about the procurement by contacting the contact persons from the addresses and numbers given above.

Article 2- Information about the subject work of procurement
Works, which constitute the subject matter of the procurement;
a)   Name:...
b)   Investment project no/ code:................................................................................................
c)   (Physical) Quantity and type:...............................................................................................
d)   Place of performance:...
e)   Other information (if any) about the works: ....................................................

Article 3-Information About the Procurement
Information about the procurement;
a)  Procurement procedure: Open Tender Procedure
b)  Address of procurement:...
c)  Date of procurement:...
d)  Time of procurement:...
e)  Place of meeting of the Tender Commission: ...................................................

Article 4- Reviewing and obtaining the tender document
4.1. The tender document may be reviewed at the address specified above free of charge. However, those who shall submit their tenders for the procurement shall be liable to purchase the tender document approved by the Contracting Entity.
a)The place where the tender document can be reviewed:......................................................
b)The place where the tender document can be purchased:.....................................................
c)Sales price of tender document (including tax if any): ..........................................

4.2. The tender document shall be provided along with a memorandum indicating the documents in the content. The tenderer shall check whether the documents comprising the tender document are true copies and the documents are complete. The Contracting Entity shall receive the declaration of the tenderer indicating that he has received all true copy documents comprising the tender document with a signature affixed on the said memorandum.

4.3. The tenderer shall be deemed to accept the conditions and rules within the tender document by purchasing the said document.

4.4. (Annex: 08/06/2004 – 25486 Official Gazette / Art. 41) If the papers comprising the tender document are issued and sold to the tenderers in other languages besides Turkish, the Turkish text shall be taken as basis in understanding and interpretation of the tender documents as well as the disputes that may arise between the Contracting Entity and tenderers.

Article 5- The place where the tenders shall be submitted, deadline date and time of submitting tenders
5.1. The place where the tenders shall be submitted, deadline date and time of submitting tenders;
a)  The place where the tenders shall be submitted:...................................................................
b)  Deadline date of submitting tenders (date of procurement):.....................................
      c)  Deadline time of submitting tenders (time of procurement):....................................

5.2. The tenders shall be submitted to the place specified above until the (deadline) date and time of submitting tenders or sent via registered and prepaid mail. The tenders that are not received by the Contracting Entity until the (deadline) time of procurement shall not be taken into consideration.

5.3. The tenders submitted to or received by the Contracting Entity shall not be returned for any reason other than for issuing addendum in accordance with Article 15 of this Specification hereby.

5.4. In the event that the date determined for the procurement is holiday, the procurement shall be held on the next business day at the time specified above at the same place, and the tenders submitted up to that time shall be accepted.

5.5. The procurement shall be held at the time specified above in the event that working hours change later.

5.6. National time setting of Turkish Radio Television Authority (TRT) shall be taken as basis for time settings.

Article 6- Scope of tender document
6.1 The tender document comprises of the following documents:
a)Administrative Specification
b)Technical specifications covering the project of work
c)Draft Contract
d)General Specification for Works
e)    Standard forms:
   .......................................................................
   ......................................................
6.2. In addition, addenda to be published by the Contracting Entity as well as the written clarifications to be made by the Contracting Entity upon the written request of the tenderers shall be an integral part of the tender documents in accordance with the relevant provisions of this Specification hereby.

6.3. The tenderer shall be liable to carefully review the content of all document listed above. The tenderer shall be liable in the event that the tenderer does not fulfill the requirements for submitting the tender. The tenders that are not in compliance with the procedure stipulated and described in the tender document shall not be taken into consideration.

II- MATTERS CONCERNING PARTICIPATION IN PROCUREMENT

Article 7- Documents and qualification criteria required for participation in procurement
7.1. The tenderers are required to submit the following documents within their tenders in order to be able participate in the procurement:
   a) Declaration of address for notification as well as phone and, if any, fax number and e-mail address for contact,
   b) Certificate of Chamber of Commerce and/or Industry or Profession registered as per the legislation;
   1) In the event that the tenderer is a physical body, the certificate received within the year when the first announcement with regard to the procurement is made and indicating registration to the Chamber of Commerce and/or Industry or Profession,
   2) In the event that the tenderer is a corporate body, the certificate received from the registered Chamber of Commerce and/or Industry within the year when the first announcement with regard to the procurement is made and indicating the registration of the corporate body,
   c) Signature statement or signature circular indicating the authority of the tenderer to submit tender,
   1) Signature statement certified by the notary public in the event that the tenderer is a physical body,
2) Original or notarized copy of Trade Registers Gazette indicating the shares of the shareholders of the company and their position within the company or the documents evidencing such issues as well as the signature circular of the corporate body certified by the notary public in the event that the tenderer is a corporate body,
d) (Amended: 08/06/2004 – 25486 Official Gazette/ Art. 42) Written letter of commitment evidencing that the tenderer is not in the cases listed under items (a), (b), (c), (d), (e), (g) and (i) of Article 10 of this Specification hereby.
e) Tender Letter, form and content of which are described in the Specification,
f) Bid bond described in this Specification hereby,
g) Qualification Certificates specified in Sub-articles (7.2) and (7.3) of the Specification, and form and content of which are stipulated in Regulation on Implementation of Works Procurements,
h) If the tenderer is represented in the procurement, the power of attorney indicating that the representative is authorized to submit tender for and on behalf of the tenderer and signature statement certified by the notary public,
i) In the event that the tenderer is a joint venture, the joint venture statement or consortium declaration, form and content of which are described in the Specification hereby,
j) List of the works, which the tenderers intend to assign subcontractors in the event that it is specified in Article 19 of the Specification hereby,
k) Certificates set forth in the Regulation on Implementation of Works Procurements evidencing that the tenderer is "a domestic tenderer" if so specified in Articles 8 and 36.4 of this Specification,
l) Certificate indicating that the tender document has been purchased,
m) (Annex: 08/06/2004 – 25486 Official Gazette / Art. 42) The certificates indicated in the last paragraph of Article 34 of Regulation on Implementation of Works Procurements if it is required under "VI- MISCELLANEOUS PROVISIONS" of this Specification,
n) (Annex: 08/06/2004 – 25486 Official Gazette / Art. 42) Letter of commitment stating that that the work experience certificate shall not be made available to another corporate body if the work experience submitted by the tenderer, who is a corporate body, belongs to the shareholder of the same corporate body holding more than half of the shares,
o) (Annex: 08/06/2004 – 25486 Official Gazette / Art. 42) The declaration concerning the corporate bodies, of which the tenderer is partner or shareholder,
(Amended: 08/06/2004 – 25486 Official Gazette / Art. 42) In the case of joint ventures, the physical or corporate bodies comprising the joint venture shall be liable to submit the documents listed under items (b), (c), (d), (k) and (o) separately.
(Last paragraph: Abolished pursuant to 08/06/2004 – 25486 Official Gazette/ Art. 42)

7.2. The documents required for the economic and financial qualification and the criteria that these documents have to meet1
7.2.1-...
7.2.2-...
7.2.3-...

7.3. The documents required for the professional and technical qualification and the criteria that these documents have to meet.
7.3.1-...
7.3.2-...
7.3.3-...

7.4. The works that will be accepted as similar works are specified below2:
..................................................................................................................

7.5. ..................................................................................................................3
........................................................................................................................
........................................................................................................................

7.6. Way of Submitting Documents (Amended: 08/06/2004 – 25486 Official Gazette / Art. 42)
7.6.1- The Tenderers shall be required to submit the originals or notarized copies of the documents listed above.
7.6.2- The notarized documents have to bear the expression "this is a true copy" certifying the true copy of the original document, otherwise the documents certified in witness of copies of photocopies of the same with the expression "this is the same copy of the document issued" or any expression with the same meaning shall be rejected.

7.6.3- The Tenderers may also, instead of originals, include into their tenders the copies bearing the expression "Original copy seen by the Contracting Entity" or any expression with the same meaning after the Contracting Entity sees the same prior to the procurement.

7.6.4- The documents except for the ones listed under Article 7.6.4.1 hereunder that will be submitted by the domestic or foreign tenderers have to be issued according to the legislation of the respective country and approved by the Consulate of the Republic of Turkey in the country where it is issued or the Turkish Ministry of Foreign Affairs. However, official documents issued from the countries that are party to the Convention on Abolishing the Obligation to Certify Foreign Official Documents and included in the scope of Article 1 of this convention shall be exempted from the approval of the Consulate of the Republic of Turkey in the country where it is issued or the Turkish Ministry of Foreign Affairs provided that they bear the "Apostille" seal. Provided that there is an agreement or convention containing provisions that require certain proceedings in respect of certifying the signature, seal or stamp on the documents between the Republic of Turkey and any other state or states, the approval of documents issued from such countries shall be subject to the provisions of this agreement or convention.

7.6.4.1....................................................................3 3.1

7.6.5- In the event that the Turkish translations of the documents are required in this Specification, translations of official documents issued abroad as well as the documents listed in the tender document by the Contracting Entity have to be approved by the Consulate of the Republic of Turkey or the Turkish Ministry of Foreign Affairs. Translations of documents that bear the seal of Apostille as well as the translations of documents that are not required to be approved by the Consulate of the Republic of Turkey or the Turkish Ministry of Foreign Affairs must be rendered by the sworn translators and notarized.

7.6.6- The documents and translations thereof issued by the certification bodies accredited by the national accreditation bodies included in the International Accreditation Forum for Mutual Recognition Agreement shall be exempted from the approval by the Consulate of the Republic of Turkey in the country where it is issued or the Turkish Ministry of Foreign Affairs provided that it is confirmed with a letter obtained from the Turkish Accreditation Authority that such bodies have been duly accredited according to the international rules.

Article 8- Openness of procurement to foreign tenderers4
...
.........   ...
........................................................................................................................

Article 9- Those that cannot participate in the procurement
9.1. Those listed below shall in no way be able to participate in the Procurement directly or indirectly, or as a subcontractor for themselves or on behalf of third persons;
   a) Those that are prohibited temporarily or permanently to participate in public procurements as per Laws No. 4734 and 4735, and provisions of other laws, and those charged with the offenses within the scope of Anti-Terrorism Law No. 3713 and organized crimes.
b) Those that have gone into false bankruptcy as determined by the relevant authorities.
c) Authorized persons of the Contracting Entity in procurement and those persons employed in the boards having such authority.
d) The persons in charge of preparing, executing, concluding and approving any procurement procedures in relation to the work which is the subject of this procurement.
e) Wives and close relatives up to third generation as well as relatives–in–law up to second generation, and adopted children of the persons specified in paragraphs (c) and (d).
f) Partners and companies of the persons specified in paragraphs (c), (d) and (e) (excluding the incorporated companies in which such persons are not within the Board of Directors or do not have more than 10% of the capital).
g) Tenderers of the foreign countries determined pursuant to the resolutions of the Council of Ministers as per sub-item 8 of paragraph (b) of Article 53 of Law No. 4734.

9.2. The contractors that provide consultation works in relation to the works, which constitute the subject of the procurement, shall not be able to participate in the procurement. This prohibition shall be applicable for the companies in partnership and management affiliation as well as the companies, which hold more than half of the capital of such companies.

9.3. Furthermore, any bodies such as foundations, associations, unions and fund under the body of the Contracting Entity or established for any reason related to the Contracting Entity as well as the companies partner to these organizations cannot participate in the procurement.

9.4. The tenderers that participate in the procurement irrespective of these prohibitions shall be disqualified from the procurement and the respective bid bonds shall be registered as revenue. Furthermore, if the contract is awarded without determining the case at the stage of evaluation of tenders submitted, the relevant performance bond shall be registered as revenue and the procurement shall be cancelled.

Article 10- Reasons of exclusion from the procurement
The tenderers that are in the following cases shall be disqualified from the procurement if such situations are determined;
a) Tenderers that go into bankruptcy, that are in the process of dissolution, whose transactions are executed by a court, that declare concordat, that suspend works or that are in similar situations as per the legislative provisions applicable in their own countries.
b) Tenderers whose bankruptcy has been declared, for whom compulsory dissolution is resolved, that are under the management of a court due to their debts to the creditors or that are in similar situations as per the legislative provisions applicable in their own countries.
c) Tenderers that have any outstanding debt due to social security premiums as per the legislative provisions of Turkey and those applicable in their own countries.
d) Tenderers that have any outstanding debt due to taxes as per the legislative provisions of Turkey and those applicable in their own countries.
e) Tenderers that are charged with any offense due to their business activities within five (5) years prior to the date of procurement.
f) Tenderers that are proved to act against business or professional ethics during the performance of works for the authority which holds the procurement within five (5) years prior to the date of procurement.
g) Tenderers that are prohibited against any business activity by the registered chamber as per the relevant legislation as of the date of procurement.
h) Tenderers that do not furnish the data and documents specified in this Article or that furnish misleading data and/or counterfeit documents.
i) Tenderers that participate in the procurement even though they are prohibited to participate in the procurement pursuant to Article 9 of the Specification.
j) Tenderers that are determined to enter into prohibited deeds and actions as specified in Article 11 of the Specification.
Article 11- Prohibited acts and behaviors
11.1. It is prohibited to enter into the following acts and behaviors in the procurement process:
a) To plot mischief or attempt to do so in procedures related to the procurement through trick, promise, threat, use of influential forces, false competition, agreement, corruption, bribe or other means.
b) To drift the tenderers into hesitation, to hinder participation, to offer or encourage agreements with the tenderers, to enter into actions affecting competition or resolution of the Tender Commission.
c) To issue, use counterfeit documents or guarantees, and attempt to such actions.
d) To submit more than one tender personally or by proxy directly or indirectly for himself/ herself or on behalf of others apart from the cases of submitting alternative tenders.
e) To participate in the procurement even though the tenderer is prohibited to participate as per Article 9 of the Specification.

11.2. Tenderers that enter into the said prohibited acts or behaviors shall be subject to the provisions in Chapter Four of Law No. 4734 according to the nature of such act and behavior.

Article 12- Tender preparation expenses
All costs arising from the preparation and submittal of tenders shall be borne by the tenderers. The Contracting Entity shall in no way be liable to such costs undertaken by the tenderer irrespective of the progress and conclusion of the procurement.

Article 13- Visiting the place of work
13.1. It shall be under the responsibility of the tenderer to obtain all necessary information to visit the place and surrounding areas of the work, make inspections, prepare tenders and enter into contracts. All costs arising from visiting the place and surrounding areas of work shall be borne by the tenderer.

13.2. The tenderer shall be deemed to have information about the type and nature of work, climatic conditions, the activities and the quantity and type of materials to be used as necessary for performance of the work, access to the workplace and the necessary items to establish the site in respect of cost and time, and to learn everything necessary in relation to the risks that may affect the tender, extraordinary cases and similar issues.

13.3. The contracting entity shall allow the people to access to the building and/or land where the work shall be carried out when such a request is made for visiting the place of work.

13.4. In evaluation of tenders, it shall be assumed that the tender has visited the place of work and prepared the tender accordingly.

Article 14- Clarification in the tender document
14.1. The tenderers shall be able to request a clarification to be made with regard to the points they need in the tender document with a written application until twenty (20) days prior to the deadline date of submitting tenders at the stage when the tenders are prepared. The requests for any clarification following this date shall not be taken into consideration.

14.2. In the event that the request for such a clarification is approved, the clarification by the Contracting Entity shall be sent to all tenderers in written that purchase the tender document until the said date with a registered and prepaid letter or delivered personally against signature. This written clarification by the Contracting Entity shall be made to ensure that all tenderers are informed at least ten (10) days prior to the deadline date of submitting tenders.

14.3. The clarification shall cover the description of the problem and detailed answers of the Contracting Entity. The identity of the tenderer that requests for a clarification shall not be disclosed.

14.4. The written clarifications shall be given to the tenderers who receive the tender document after the day when the clarification is made within the tender document.

Article 15- Amendment to tender document
15.1. It is essential that there is not any amendment to the tender document following the announcement of procurement. However, in the event that substantial or technical mistakes or deficiencies that may adversely affect the preparation of tenders or performance of works are determined by the Contracting Entity or notified written by the tenderers, an amendment may be made to the tender document by issuing an addendum.

15.2. The said addendum shall be sent to all tenderers who purchase the tender document in writing in a registered and prepaid letter or delivered personally against signature, and the tenderers shall be ensured to be notified at least ten (10) days prior to the date of procurement.

15.3. In the event that additional time is needed to prepare tenders due to such an amendment, the Contracting Entity may postpone the date of procurement for maximum twenty (20) days only once with an addendum. It shall be continued to sell the tender documents and receive the tenders during the term of postponement.

15.4. In the event that an addendum is issued, the tenderers that submit their tenders before such an amendment shall be enabled to withdraw their former tenders and submit their new tenders.

Article 16- Freedom of the Contracting Entity to cancel the procurement before the time of procurement
16.1. When deemed necessary by the Contracting Entity or in the event that the points which hinder the procurement and impossible to remedy are determined in the tender document, the procurement may be cancelled before the time of procurement.

16.2. In this case, the cancellation of the procurement shall be notified to the tenderers indicating the reason of such cancellation. The tenderers that submit their tenders up to that time shall also be informed about the cancellation of the procurement.

16.3. In the event that the procurement is cancelled, all submitted tenders shall be deemed rejected and such tenders shall be returned to the tenderers without opening them.

16.4. The tenderers shall not be entitled to claim any right against the Contracting Entity due to the cancellation of the procurement.

Article 17- Joint ventures
17.1. More than one physical body or corporate body shall be able to submit tenders for the procurement through establishing a joint venture.

17.2. Tenderers that shall submit tender for the procurement through establishing a joint venture shall submit a Joint Venture Statement, an example of which is enclosed, in which the pilot partner within the joint venture is specified, together with the tender.

17.3. In the event that a joint venture is awarded the Contract, the respective joint venture shall be requested to submit the joint venture contract certified by a notary public before signing the Contract.
17.4. The Joint Venture Agreement (Joint Venture Statement) and Contract shall include the provision that physical bodies and legal entities comprising the joint venture shall be liable jointly and successively to perform the contract.

17.5. The pilot partner shall have the majority of shares in the joint venture. The percentage of share of the partners shall be indicated in the Joint Venture Agreement (Joint Venture Statement) and contract.

Article 18- Consortiums5
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................

Article 19-Subcontractors6
.........................................................................................................................
.........................................................................................................................
.........................................................................................................................


III. MATTERS CONCERNING PREPARATION AND SUBMITTAL OF TENDERS

Article 20- Type of tender and contract7
........................
...

Article 21- Language of tender8
.................................................................................................................................................
.................................................................................................................................................
   
Article 22- Currency applicable for tenders and payments9
.........................................................................................................................
........................................................................................................................

Article 23-Way of submitting tenders
23.1. All documents including the Tender Letter and bid bond required in this Specification as a condition to participate in the procurement shall be put into an envelope (or package). Name, surname or trade title of the tenderer, full address for notification, the work related to the tender and full address of the Contracting Entity holding the procurement shall be written on this envelope. The adhesive part of the envelope shall be signed, sealed or stamped by the tenderer.

23.2. The tenders shall be submitted to the Contracting Entity (the office where the tenders shall be submitted) in return for receipts with order numbers until the time of the procurement stipulated in the tender document. The tenders submitted after this time shall not be accepted, but returned to the tenderer without opening them.

23.3. Tenders may be submitted by registered and prepaid mail as well. The tenders sent by mail shall reach to the Contracting Entity until the time specified in the tender document. The receiving time of the tenders which shall not be put into effect due to delays in mail shall be written into a minute and shall not be taken into consideration.

23.4. The tenders submitted shall not be returned and replaced for any reason other than the case of issuing an addendum according to the provisions of this Specification hereby.

23.5. In the event that the duration of submitting tenders is extended with an addendum, all rights and liabilities of the Contracting Entity and tenderers with regard to the former date of submitting tenders shall be deemed extended until the new deadline date of submitting tenders determined again.

Article 24- Form and content of tender letter
24.1. The tender letters shall be submitted in writing and duly signed in accordance with the sample form enclosed.

24.2. With regard to the Tender Letter;
a) It must specified that the tender document is fully read and accepted,
b) The tender price must be written clearly and consistently both in figures and in words,
c) There must not be any scraping, erasure and correction on it,
d) The Tender Letter must be signed by the authorized persons by indicating their names, surnames or trade titles.

24.3. Tender letters of tenderers that submit tenders as a joint venture are required to be signed by all members of the joint venture or persons duly authorized to submit tenders.
   
Article 25- Validity duration of tenders10
25.1. The validity duration of tenders shall be at least ............. calendar days following the date of procurement. The tender letters, which are indicated to have shorter validity duration, shall not be taken into consideration.

25.2. If necessary, the Contracting Entity may request the tenderers to extend the validity period to the maximum extent specified above before the existing validity period expires. The tenderers may accept or reject this request of the Contracting Entity. The bid bond of the tenderer that rejects the request of the Contracting Entity with regard to extension of the validity period shall be returned.

25.3. The tenderers that accept such a request shall be liable to adapt their bid bond to the new validity period and provisions of bid bond in all aspects without changing the conditions of the tender and the contract.

25.4. Requests and answers to this effect shall be made in writing, sent by registered and prepaid mail or delivered personally against signature.

Article 26- Costs included in the tender price
26.1. Any kind of tax, levy, charge and similar expenses as well as the traveling, transportation and insurance expenses that the tenderers shall pay as per the pertinent legislation during the implementation of contract shall be included in the tender price.

26.2. In the event that any increase occurs in the expenses provided in article (26.1.) or similar costs arise, it shall be assumed that the tender price meets such increases or differences. The contractor cannot make any claim for the said increases and differences.

26.4. However, the Value Added Tax (VAT) payable when the price of the work, which is the subject of the contract, shall be paid separately to the contractor by the Contracting Entity in accordance with the relevant legislation.

Article 27- Bid Bond
27.1. The tenderers shall provide bid bonds at the rate to be determined by them, but not less than 3% of the tender price. The tenderers that provide less than 3% of the tender price shall be disqualified from the evaluation.

27.2. In the event that the tenderer is a joint venture, the partners may provide bid bonds at the rate of their share, and bid bond may be paid by one or some of the partners provided that the total amount is not less than the minimum amount of bid bond.

27.3. The duration must be specified in guarantee letters issued by banks as bid bonds. This duration shall be determined by the tenderers, but not less than thirty (30) days from the validity period of tender.

27.4. The tenders submitted without any acceptable bid bond shall be disqualified from the evaluation since the requirements of the Contracting Entity are not met.
   
Article 28 – Values accepted as bid bond
28.1. The values that shall be accepted as bid bonds are as follows:
a) Turkish Lira in currency,
b) Letters of Guarantee issued by banks and private financial organizations,
c) State Domestic Borrowing Notes issued by the Treasury Undersecretariat and certificates issued in lieu of these notes.

28.2. Those notes issued including the interest in the nominal value of the notes and certificates issued for these notes as specified in item (c) shall be accepted as a guarantee over the sales value corresponding to the principal.

28.3. Letters of Guarantee issued by foreign banks that are allowed to act in Turkey as per the relevant legislation and the Letters of Guarantee issued by the banks in Turkey with counter-guarantee of banks or similar loan organizations acting outside Turkey shall be accepted as a guarantee.
   
28.4. In the event that Bank Letter of Guarantee is issued, scope and form of the said Bank Letter of Guarantee shall comply with the principles set forth by the Public Procurement Authority. Letters of Guarantee issued on contrary to the aforesaid principles shall not be accepted as a guarantee.

28.5. The guarantees may be replaced with other values accepted as a guarantee (bid bond).

28.6. The guarantees received by the Contracting Entity shall in no way be sequestrated and attached with interim injunction.

Article 29- The office where the bid bonds shall be submitted
29.1. Bank Letters of Guarantee shall be submitted to the Tender Commission inside the tender envelopes.

29.2. The guarantees other that the Bank Letters of Guarantee must be furnished to the Accountancy or Directorates of Accounting, and the receipts thereof must be submitted inside the tender envelopes.
   
Article 30 – Returning bid bonds
30.1. The Letters of Guarantee belonging to the tenderer that is awarded the contract and the second tenderer that is the most advantageous in economic terms shall be delivered to the Accountancy or Directorates of Accounting after the procurement. Bid bonds of the other tenderers shall be returned immediately.

30.2. The bid bond provided by the tenderer that is awarded the contract shall be returned after the provision of the required performance bond and concluding the contract.

30.3. In the event that a contract is concluded with the tenderer that is awarded the contract, the guarantee of the second tenderer that is the most advantageous in economic terms shall be returned just after signing the contract.

30.4. The bid bond shall be returned to the tenderer or the authorized representative personally against signature.

IV- MATTERS CONCERNING EVALUATION OF TENDERS
AND CONCLUDING THE CONTRACT
Article 31 – Receiving and opening the tenders
31.1. The tenders shall be submitted to the Contracting Entity (the office where the tenders shall be submitted to) until the deadline time of submitting tenders indicated in this Specification hereby.

31.2. The following procedure shall be applicable for receiving and opening the tenders by the Tender Commission;

31.2.1. The number of tenders submitted until the deadline time of submitting tenders shall be written into a minute by the Tender Commission, and it shall be announced to the participants and then procurement shall immediately be held.
   
31.2.2. The Tender Commission shall review the tender envelopes in order of receipt. Name, surname or trade title, full notification address of the tenderer, the work referred by the tender, full address of the Contracting Entity holding the procurement on the envelope as well as the signature and seal (or stamp) of the tenderer on the adhesive part of the envelope shall be checked in this review. The envelopes that do not meet the said requirements shall be written into the minutes, and shall not be taken into consideration.

31.2.3. The envelopes shall be opened in order of receipt in front of the participants together with the tenderers. It shall be checked whether the documents of the tenderers are complete, and the tender letters and the bid bonds are in compliance with the described procedure. The tenderers whose documents are deficient or whose tender letters and bid bonds are not in compliance with the described procedure shall be written into the minutes.

31.2.4. The tenderers and the tender prices shall be announced. The minutes related to these procedures shall be signed by the Tender Commission.

31.2.5. The rejection or acceptance of any tender shall not be decided, and the documents comprising the tender shall not be corrected and completed at this stage. The session shall be closed for the Tender Commission to evaluate the tenders immediately.

Article 32- Evaluation of Tenders
32.1. (Amended: 08/06/2004 – 25486 Official Gazette/ Art. 43) In evaluation of the tenders, it shall firstly be decided that the tenders of the tenderers whose documents are incomplete or whose tender letters and bid bonds are not in compliance with the procedure pursuant to Article 31.2.3 of this Specification hereby shall be disqualified from the evaluation process.

32.1.1. In the event that the documents that must be submitted within the tender envelope as per this Specification and the annexes that must be provided pursuant to the related legislation are not furnished by the tenderers, such deficient documents and annexes thereto shall not be completed.

32.1.2. However,

a) In the event that there is lack of information that does not have an effect to change the basis of the tender in the documents submitted except for the requirements that must be met statutorily in respect of the bid bonds and tender letters, the documents to remedy such lack of information;

b) The documents to remedy the lack of information that has the effect to cause hesitation concerning the content of the document and arising from the authorities, agencies or persons that issue the documents except for the compulsory factors that these documents must bear in the documents submitted by the tenderers and issued other authorities, agencies or persons shall be completed within the due time.

32.1.3. If the documents submitted by the tenderers within the period provided in respect of completing the lack of information are issued on a date later than the date of procurement, these documents shall be accepted if the tenderer evidences that he meets the requirements of participation as of the date of procurement.

32.2. The tenders of the tenderers, whose documents are complete and whose tender letter and bid bond are in compliance with the procedure as a result of the first review and such procedures, shall be evaluated in detail.

32.2.1. It shall be checked whether the capacity of the tenderers is in compliance with the qualification criteria and tenders are in accordance with the conditions specified in the Tender document at this stage. The tenders of the tenderers that do not comply with the said requirements shall be disqualified from evaluation.

32.2.2. It shall be checked whether there is any arithmetic error in statements enclosed to the tender letters submitted by the tenderers at the final stage.

32.2.3. In the event that an arithmetic error is determined in multiplication and sum within the statements enclosed to the tender letters indicating the tender prices, the arithmetic errors shall be discretionally corrected by the Tender Commission on the basis of unit prices offered by the tenderers. The tender found as a result of such correction shall be accepted as the principal tender of the tenderer and the matter shall immediately be notified in writing to the tenderer.

32.2.4. The tenderer shall be liable to notify written within five (5) days following the date of the aforesaid notification whether he accepts the corrected tender or not. In the event that the tenderer notifies that he does not accept the corrected tender or does not reply within this duration, then the tender shall be disqualified from evaluation and the bid bond furnished shall be registered as revenue.

Article 33 – Requesting the tenderers to clarify their tenders
33.1. The Contracting Entity may request the tenderers to explain their tenders with regard to unclear points in order to review, compare and evaluate the tenders upon the demand of the Tender Commission.

33.2. This clarification shall not be requested to change the tender price or to comply the defective tenders with the requirements indicated in the tender document, and shall not be used to this effect.

33.3. The request for clarification of the Contracting Entity and the replies of the tenderer to this request shall be in writing.

Article 34 – Abnormally low tenders
34.1. After the Tender Commission evaluates the tenders submitted as per Article 32 of this Specification hereby, it shall determine the abnormally low tenders according to the other tenders or the approximate cost determined by the Contracting Entity. The Tender Commission shall demand from the tenderers to submit the significant components and relevant details in the submitted tender in writing within the period determined before rejecting such tenders.

34.2. The Tender Commission shall evaluate the abnormally low tenders with regard to the written clarifications by documenting;
a) The cost – effectiveness of the construction process and method;
b) Technical solutions selected and the advantageous conditions that shall be used by the tenderer in performance the works;
c) Exclusivity of the works.

As a result of this evaluation, the tenders of the tenderers whose clarifications are not deemed satisfactory or that do not make any written clarification shall be rejected.   

Article 35 – Freedom of Contracting Entity to reject all tenders and cancel the procurement
35.1. The Contracting Entity shall be free to reject all tenders and cancel the procurement upon the resolution of the Tender Commission. The Contracting Entity shall not have any liability due to the cancellation of all tenders.

35.2. In the event that the procurement is cancelled, the situation shall immediately be notified to all tenderers.

35.3. Furthermore, the Contracting Entity shall notify the reasons of the cancellation of the procurement to all tenderers if any of the tenderers requests to this effect.








Article 36 – Determination of the most advantageous tender in economic terms
36.1. The most advantageous tender in economic terms shall be determined on the basis of the lowest price submitted in this procurement11.

36.2. In the events that the same price is proposed by more than one tenderer and such prices constitute the economically most advantageous tenders, the most advantageous tender in economic terms shall be determined by evaluating the "work experience certificates" as the criterion other than price.

36.3. If it is stipulated that tenders can be submitted in Turkish Lira and/or other currencies as per Article 22 of this Specification, the tenders shall be evaluated by converting the price offered into the currency taken as basis for payment over the foreign exchange rate or cross rate published by the Central Bank of the Republic of Turkey on the date of procurement.

36.5. Application of price advantage in favor of domestic tenderers: ....................................12
................................................................................................................................................................................................................................................
   
Article 37- Award of procurement
37.1. The tenderer that submits the most advantageous tender in economic terms shall be awarded the contract as a result of evaluation made according to the provisions of this Specification hereby.

37.2. The Tender Commission shall make its resolution with reasons thereof and submit to the contracting officer for approval.
   
Article 38 – Approval of the procurement award
38.1. The Contracting entities shall check whether the tenderer who is awarded the contract is prohibited from taking part in the procurements through the Public Procurement Authority prior to approval of the contracting officer and annex the document to this effect to the procurement award.

38.2. The Contracting Officer shall approve the procurement award within five (5) business days at the latest following the date of award or cancel the award by indicating the reasons thereof.

38.3. The procurement shall be deemed valid if the award is approved, and invalid if it is cancelled by the Contracting Officer.

Article 39 – Notification of final procurement award
39.1. The result of the procurement shall be notified to all tenderers including the tenderer that is awarded the contract that submit tenders for the procurement, against signature or via registered and prepaid mail sent to their notification addresses within maximum three (3) days following the approval of the procurement award by the contracting officer. The seventh (7th) day following the mailing date shall be assumed as the notification date of the procurement award.

39.2. In the event that the tenderers participating in the procurement whose tenders are not taken into consideration or not found suitable make a written request within five (5) days following the date of notification, the Contracting Entity shall notify the reasons within five (5) days following the date of such a request.

39.3. In the event that the procurement award is cancelled by the contracting officer, the tenderers shall again be notified in the same way.

Article 40 – Invitation for concluding the contract
40.1. In the event that the notification period as per Article 39.2 of this Specification hereby expires or visa by the Ministry of Finance is required, the tenderer that is awarded the contract shall be invited to sign a contract via a registered and prepaid mail within three (3) days following the notification to the effect that such a visa is issued. The seventh (7th) day following the mailing date shall be assumed as the notification date of the award to the tenderer. Twelve (12) days shall be added to this duration for the foreign tenderers.
   
40.2. This notification may also be made to the tenderer in the Contracting Entity against signature.

40.3. The tenderer shall be liable to sign the contract by providing the performance bond within ten (10) days following the notification date of this invitation.

Article 41 – Performance bond
41.1. The tenderer that is awarded the contract shall be liable to provide performance bond at an amount corresponding to 6% of the procurement amount before concluding the contract.

41.2. In the event that the tenderer that is awarded the contract is a joint venture, the partners may provide performance bonds at the percentage of their share, and the total amount of performance bond may be paid by one or some of the partners.

Article 42 – Duty and responsibility of the tenderer in concluding the contract
42.1. (Amended: 08/06/2004 – 25486 Official Gazette / Art. 44) The tenderer that is awarded the contract shall be liable to sign the contract by furnishing the documents evidencing that he is not in the cases listed under items (a), (b), (c), (d), (e) and (g) of Article 10 as well as the performance bond within the period as stipulated under Article 40.3 of this Specification hereby. The bid bond shall be returned immediately after the contract is signed.

42.1.1. (Annex: 08/06/2004 – 25486 Official Gazette / Art. 44) The foreign tenderers shall submit the equivalent documents evidencing that they are not in the cases listed under items (a), (b), (c), (d), (e) and (g) of Article 10 of this Specification according to the legislation of their respective countries. If there are not equivalent documents within the frame of legislation binding the tenderer or it is not possible to issue such documents, they shall submit the written statements to this effect. However, this shall be confirmed by the mission chiefs in Turkey of the country of nationality of the foreign physical body or where the head office of the company of the foreign corporate body is seated or the mission chiefs in such countries of the Republic of Turkey.

42.2. If these requirements are not met, the bid bond of the tenderer that is awarded the contract shall be registered as revenue without sending a protest letter and order by a court.

42.3. Furthermore, the tenderer that does not conclude a contract according to the applicable procedures apart from force majeure even though the said tenderer is awarded the contract shall be prohibited to participate in any procurements held by all public authorities and bodies as stipulated in the relevant Law for a period between six months and one year as per Article 58 of Law No. 4734.

Article 43 – Notification to the second most advantageous tenderer in economic terms
43.1. (Amended: 08/06/2004 – 25486 Official Gazette/ Art. 45) In the event that the tenderer that is awarded the contract does not provide the documents evidencing that he is not in the cases listed under items (a), (b), (c), (d), (e) and (g) of Article 10 as well as the performance bond or does not sign the contract, then the contract may be concluded with the second most advantageous tenderer in economic terms if it is found suitable by the contracting officer. In this case, it shall be checked if the second most advantageous tenderer in economic terms is prohibited and shall be required to submit the documents evidencing that he is not in the cases listed under items (a), (b), (c), (d), (e) and (g) of Article 10 as per Article 38.1 prior to the approval by the contracting officer.

43.2. The said tenderer shall be notified in accordance with the provisions of Article 40 of this Specification hereby.

43.3. In the event that the second most advantageous tenderer in economic terms does not sign the contract, the bid bond of the said tenderer shall be registered as revenue, and the procurement shall be cancelled.

43.4. Furthermore, the tenderer that does not conclude a contract according to the applicable procedures apart from force majeure even though the said tenderer is the second most advantageous tenderer in economic terms shall be prohibited from participating in any procurement held by all public authorities and bodies as stipulated in the relevant Law for a period from six months to one year as per Article 58 of Law No. 4734.
 
Article 44 – Duty and responsibility of the Contracting Entity in concluding the contract
44.1. The tenderer may defer from his commitment provided that the said tenderer notifies the situation to the Contracting Entity with a written notice issued by the Notary Public for a period of ten (10) days within maximum five (5) days following the expiry of the period stipulated in Article 40.1. of this Specification hereby in the event that the Contracting Entity does not fulfill its obligation with regard to concluding the contract.

44.2. In this case, the bid bond of the said tenderer shall be returned and the said tenderer shall be entitled to claim the documented costs incurred to provide such bid bond.

Article 45 – Concluding the procurement with contract
45.1. The share of Public Procurement Authority shall be invested to the accounts of the said Authority before the contract is signed if the contract price exceeds the amount specified in sub-item (1) of paragraph (j) of Article 53 of Law No. 4734.

45.2. The contract prepared by the Contracting Entity in accordance with the conditions specified in the tender document shall be signed by the contracting officer and the Contractor.

45.3.................................................................................................................13.........................................................................................................................

45.4. In the event that the Contractor is a joint venture, the contract shall be signed by all partners of the joint venture.

45.5. Taxes, levies and charges concerning the execution of Contract shall be borne by the Contractor.
V – MATTERS CONCERNING IMPLEMENTATION OF CONTRACT

Article 46- Place and terms of payment
46.1. The progress payments of the contractor shall be effected by the (Accountancy/ Accounting Office of ............................).

46.2. The provisions concerning the progress payments, accrual, deductions and payments are included in the draft contract.

46.3. The contractor has to spend the appropriations specified in the contract for the works for the construction and/or preparation works in compliance with the work program.

46.4. If the contractor carries out more work than the work program not exceeding the contract amount, the amount of such excessive work shall be paid within the boundaries of appropriations.

46.5. The annual portions of appropriations planned for this work are as follows:

   YEARS            APPROPRIATIONS (%)
   ...............................      ...............................
   ...............................      ...............................
   ...............................      ...............................

Article 47- Advance payment and conditions14
The advance payment ........................................................ during the performance of contract.
The percentage of advance payment shall be ...................................... of the contract amount.

Article 48- Terms of price difference payment and calculation
The price difference ..................................................................... to the contractor15.

Article 49- Date of work commencement and completion
49.1. The work shall commence within ................... (in figures and words) ....................... calendar days following the notification of the proceed to work to the contractor or the address indicated for notifications by the Contracting Entity following the execution of the contract (in respect of works subject to registration by Court of Accounts, following such registration).

49.2. The duration of work shall be ..................... (in figures and words) ....................... calendar days following the hand-over of the site.

Article 50- Days when the works cannot be performed
The days when the works cannot be performed scientifically shall be during ............................

Article 51 – Cases and conditions for extension of duration
51.1. Time extension shall be granted in the following cases that are accepted as force majeure:
a) Natural disasters.
b) Legal strikes.
c) General epidemics.
d) Announcement for partial or general mobilization.
e) Other cases determined by the Public Procurement Authority if necessary.

51.2. The cases listed above shall be accepted as force majeure and the extension of time shall be possible provided that such cases;
a) Shall not be caused owing to any defect attributable to the Contractor,
b) Shall have the nature to hinder the performance of the contract,
c) The contractor shall not have sufficient power to eliminate this hindrance,
d) The contractor shall notify the Contracting Entity in writing within twenty (20) days following the date of occurrence of force majeure,
e) Shall be documented by the authorized bodies.

51.3. Furthermore, in the event that the Contracting Entity does not fulfill the contractual obligations (delay in delivering the worksite, approval of the projects, lack of appropriations etc.) set forth in the contract and General Specification for Works within the stipulated duration without any default of the contractor, and any delay occurs with reasons not caused by the contractor, and the work is not completed in time, the situation shall be reviewed by the Contracting Entity upon the request by the contractor provided that this hinders the performance of the contract and the contractor does not have sufficient power to eliminate the hindrance, and the Contracting Entity may extend the time for a part of or whole work according to the nature of the work.
   
Article 52- Additional works, decrease and dissolution of work that may be performed within the scope of contract:
52.1. If increase in the extent of the work is obligatory due to the reasons not foreseen, provided that;
a)It is within the scope of the project taken as basis for the contract,
b)It is not possible to separate from the actual work technically and economically without imposing any cost to the Contracting Entity,
the Contracting Entity shall be authorized to assign the additional work to the same Contractor pursuant to the provisions set forth in the contract and tender document except for the duration within the percentage up to 10% of the contract amount in respect of the works that are procured on turnkey lump sum, and up to 20% of the contract amount in respect of the works that are procured on unit price.

52.2. If it is revealed that the work cannot be completed under such circumstances, the account shall be settled according to the general provisions without any increase. However, in this case, the contractor shall be liable to perform the whole work according to the provisions of the tender document and contract.

52.3. If it is revealed that the work cannot be completed with a price less than 80% of the contract price, the contractor shall be obliged to complete the works. In this case, the contractor shall be paid 80% of the contract price and 5% of the price difference between the contract prices and the amount of work performed in return for the actual expenses incurred and profit of the contractor.

52.4. The increases and decreases in the volume of work within the scope of the contract shall be subject to the relevant provisions of the contract in respect of the obligations of the Contracting Entity and contractor.

Article 53 – Penalties applicable for delays16
53.1. If the whole work under contract cannot be completed within the period set forth in the related contract, the delay penalty shall be deducted by ......................... (in figures and words) .......... of the contract amount for each calendar day delayed.

53.2. If the part of work under contract cannot be completed within the period set forth in the related contract, the delay penalty shall be deducted by ......................... (in figures and words) .......... of the contract amount for each calendar day delayed.

Article 54- Insuring the work and workplace
The contractor has to arrange "all risk" insurance for any kind of tools, materials, preparations, working and service machinery, vehicles, plants and the parts of works completed at the site as effective from the date of commencement to work until the date of acceptance according to the properties and nature of them against the natural disasters such as earthquakes, floods, landslides, storms and fires as well as the risks such as robbery and sabotage within the framework of the provisions set forth in the General Specification for Works.

Article 55 – Terms of inspection, examination and acceptance
55.1. The inspection and acceptance of the works under the contract shall be performed in accordance with the provisions set forth in the draft contract and the General Specification for Works.

55.2. The provisions set forth in Article 56 of this Specification and draft contract as well as the General Specification for Works shall be applicable for the partial acceptances.

Article 56- Partial acceptance of works17
Partial acceptance of the work under the contract .............................................................
........................................................................................................................

Article 57- Settlement of disputes
57.1. All disputes arising during the process until the contract is executed and enforced shall be settled by Administrative Judiciary provided that rules related to the request for review in Article 54 and the subsequent Articles of Public Procurement Law No. 4734 are reserved.

57.2. The relevant provisions stipulated in the contract of work shall be applicable for any dispute arising from the implementation of the contract.

VI- MISCELLANEOUS PROVISIONS18







"It is foreseen to make partial acceptance according to the principles and procedures set forth in the contract as well as the General Specification for Works in respect of the works that are completed or parts of works suitable to be used independently under the contract."

The contracting entities may make other arrangements in articles and include in this section provided that they are not on contrary to the Public Procurement Law #4734, Public Procurement Contracts Law #4735 and Regulations, Specifications and other legislation released by the Public Procurement Authority in respect of the matters that are not set forth in this specification hereby, but that need to be specified by the contracting entities according to the nature of work.
#63
ANNEX-1
PROCUREMENT APPROVAL CERTIFICATE
CONTRACTING ENTITY

DATE & NUMBER OF CERTIFICATE

TO (title of contracting officer)

DETAILS OF PROCUREMENT
NAME OF

NATURE OF WORK


Estimated Cost

Amount of Usable Appropriations

Investment Project No

Budgeting (if any)

Terms of Advance Payment

Procurement Procedure1

Form and Quantity of Procurement

Sales Price of Prequalification/ Tender Document

If the Price Difference Will Be Paid, Related Decree of Council of Ministers

OTHER DETAILS ABOUT THE PROCUREMENT2

APPROVAL


I hereby submit to your high considerations the requirement to hold procurement for the works indicated hereinabove.
..../..../....


Approved
..../..../....
Contracting Officer3
NAME & SURNAME
Title
Signature


Name & Surname
:

Title
:




Annex: Estimated cost summary table

ESTIMATED COST SUMMARY TABLE

NAME OF WORKS: .....................................................................................

Line No.
Portions of Works
Amount (TL)
1


2


3


4


5


6


--


--


n


Lines shall be inserted to the table as necessary.

TOTAL (excl. VAT)



ISSUED BY

Name, Surname
Position
Signature
Name, Surname
Position
Signature
Name, Surname
Position
Signature
----------
----------
----------





Approved
.../.../......
Name, Surname
Position
Signature






Encl.: Estimated cost schedules concerning the portions of works.







Standard Form  KIK001.1/Y
Estimated Cost Summary Table

ANNOUNCEMENT FOR PROCUREMENT
[name of contracting entity]

The works for [name of work] shall be procured through open tender procedure.
Procurement register number*
:
1- Contracting entity's

a) address
:
b) phone and fax number
:
c) e-mail (if any)
:
2- Works to be procured

a) nature, type and quantity
:
b) location
:
c) work commencement date
: The work shall commence upon handover of worksite within ..... days as from the date of notification concerning the conclusion of contract.
d) Duration of work
: ..... calendar days as from the date of handover of worksite.
3- Procurement's

a) location
:
b) date and time
:
4- The conditions for participation in procurement, documents required and the criteria application in evaluation of qualification:
4.1-The conditions for participation in procurement and documents required:
4.1.1-.............................................................................................................
4.2- Documents concerning the economic and financial qualification and the criteria that such documents have to meet:1
4.2.1-...
4.3- Documents concerning the professional and technical qualification and the criteria that such documents have to meet:2
4.3.1-...
4.4- Similar works in this procurement shall be ...........................................................................3
5- [Only the domestic tenderers can participate in the procurement./ The procurement is open to domestic and foreign tenderers./Price advantage shall be applied by ....% in favor of domestic tenderers in the procurement./ Price advantage shall not be applied in favor of the domestic tenderers in the procurement]
6- The tender document can be reviewed at [address of contracting entity] and obtained [from the same address/ ...............................] against TL ............................... Those that can submit tenders for the procurement have to purchase the tender document.
7- The tenders can either be delivered personally to the [place where the procurement shall be held] until the [time of procurement] or sent via registered and prepaid mail.
8- The tenderers shall submit their tenders [over turnkey lump sum. Turnkey lump sum contract shall be concluded with the tenderer that is awarded as a result of the procurement. /- over tender unit costs over the total amount that is calculated by multiplying the items with the unit costs proposed for the items. Unit cost contract shall be concluded with the tenderer that is awarded as a result of the procurement.]
9- The tenderers shall furnish Bid Bond at the amount to be determined by them, which shall not be less than 3% of the tender price.
10- The validity period of tenders submitted must be minimum ............... calendar days as from the date of procurement.
11- Consortiums can/ cannot submit tenders for the procurement.

ANNOUNCEMENT FOR PREQUALIFICATION
[name of contracting entity]

The candidates that have sufficient experience are invited to make application for prequalification for the works of [name of work]. The said work shall be awarded through the restricted procedure with participation of the tenderers that will be invited for negotiation after having been found qualified as a result of the evaluation on prequalification.

Procurement register number*
:
1- Contracting entity that requests for prequalification

a) address
:
b) phone and fax number
:
c) e-mail (if any)
:
2- Works related to prequalification

a) nature, type and quantity
:
b) location
:
c) work commencement date
: The work shall commence upon handover of worksite within ..... days as from the date of notification concerning the conclusion of contract.
d) duration of work
: ..... calendar days as from the date of handover of worksite.
3- Evaluation on prequalification

a) location
:
b) date and time
:
4- The conditions for participation in prequalification, documents required and the criteria application in evaluation of qualification:

4.1-The conditions for participation in prequalification and documents required:
4.2- Documents concerning the economic and financial qualification and the criteria that such documents have to meet:1
4.2.1-...
4.3- Documents concerning the professional and technical qualification and the criteria that such documents have to meet:2
4.3.1-...
4.4- Similar works in this procurement shall be ...........................................................................3
5- [Only the domestic tenderers can participate in the procurement./ The procurement is open to all foreign tenderers./Price advantage shall be applied by ....% in favor of domestic tenderers in the procurement./ Price advantage shall not be applied in favor of the domestic tenderers in the procurement]
6- The prequalification document can be reviewed at [address of contracting entity] and obtained [from the same address/ ........................] against TL ............................... Those that will apply for prequalification have to purchase the prequalification document.
7- The application documents to be drawn up in compliance with the prequalification document can either be delivered personally to the [address of application] until [deadline date of application] [deadline time of application] or sent via registered and prepaid mail.
8- Consortiums [can/ cannot] apply.

ANNOUNCEMENT FOR PROCUREMENT
[name of contracting entity]

The tenderers that act in the field of subject matter of procurement and that have sufficient experience are invited to submit tenders for the works of [name of work]. The work shall be awarded through negotiated procedure among the tenderers that are invited after having been found qualified as a result of evaluation on qualification.
Procurement register number*
:
1- Contracting entity's

a) address
:
b) phone and fax number
:
c) e-mail (if any)
:
2- Works to be procured

a) nature, type and quantity
:
b) location
:
c) work commencement date
: The work shall commence upon handover of worksite within ..... days as from the date of notification concerning the conclusion of contract.
d) duration of work
: ..... calendar days as from the date of handover of worksite.
3- Evaluation on qualification

a) location
:
b) date and time
:
4- The conditions for participation in evaluation on qualification, documents required and the criteria applicable for evaluation on qualification:
4.1-The conditions for participation in procurement and documents required:
4.2- Documents concerning the economic and financial qualification and the criteria that such documents have to meet:1
4.2.1-...
4.3- Documents concerning the professional and technical qualification and the criteria that such documents have to meet:2
4.3.1-...
4.4- Similar works in this procurement shall be ...........................................................................3
5- [Only the domestic tenderers can participate in the procurement./ The procurement is open to all foreign tenderers./Price advantage shall be applied by ....% in favor of domestic tenderers in the procurement./ Price advantage shall not be applied in favor of the domestic tenderers in the procurement]
6- The tender document can be reviewed at [address of contracting entity] and obtained [from the same address/ ...............................] against TL ............................... Those that will participate in qualification process have to purchase the tender document.
7- The application documents to be drawn up in compliance with the tender document can either be delivered personally to the [the place where the evaluation on qualification shall be made] until [deadline time of application] or sent via registered and prepaid mail.
8- Consortiums [can/ cannot] apply.
[Letterhead of contracting entity]

Procurement register number
:

Number
:

Subject
:
Invitation to submit tenders

This letter has been delivered to you [via registered & prepaid mail/ personally] on _ _ / _ _ / _ _ _ _



          [address of tenderer],
      Messrs. [name or trade title of tenderer],

   The procurement shall be held by receiving tenders from the tenderers that are found qualified as a result of the evaluation on qualification made in relation to [name of work]. The tender document concerning the procurement can be reviewed and/or purchased at the address indicated below. You have to submit your application for qualification, which shall be drawn up in compliance with the tender document in order to participate in the procurement, to the address indicated in the tender document until _ _ / _ _ / _ _ _ _ (date) at _ _ : _ _ (time) at the latest.

   It is submitted to you for knowledge and necessary action.




Address:[address of contracting entity]                     Contracting Officer
   [phone or fax of contracting entity]                   Name & Surname
   [e-mail of contracting entity (if any)]                              Position
                                     Signature


[Letterhead of contracting entity]


Procurement register number*   :
Name of work         :
Date of [prequalification/ procurement]: __/__/____ at __:__
           
Trade title of [tenderer/ candidate]

Address


Date and time of purchasing the document

Date and number of certificate concerning the collection of the value of document

Clarification**


Addendum**




This is to certify that the documents comprising the tender document in relation to [the name of work] have been checked to verify that they are true copies and complete by the [tenderer/ candidate], and all of them have been duly delivered with a memorandum indicating the documents in the content4 .

[Tender/ prequalification] document consists of;

   1) .....................................................................................
   2) .....................................................................................
   3) .....................................................................................
   4) .....................................................................................
   5) ........................................................
   ... (necessary lines shall be inserted to this section).




  Document purchased by
Delivered by
       Name & Surname
Contracting Officer
            Signature
Name & Surname

Position

Signature


* This shall be obtained from the Public Procurement Authority.
** If a clarification is made or  addendum is issued, the date and number of clarification or addendum shall be written when such clarification or addendum is sent to the address of candidate/ tenderer.
[Letterhead of contracting entity]
Procurement register number
:
Name of contracting entity
:
Name of work
:
Date and time of [application/ procurement)
: date _ _/_ _/_ _ _ _ ....................., time _ _:_ _

Date and time of submitting [application for prequalification/ application for qualification/ procurement tender envelope]
: date _ _/_ _/_ _ _ _ ....................., time: _ _:_ _

Line Number
:








CERTIFICATE OF RECEIPT OF [application for prequalification/ application for qualification/ procurement tender envelope]

[Application for prequalification/ application for qualification/ procurement tender envelope] named ........................... of [the candidate/ tenderer] has been registered under the line number indicated hereinabove, and received at the date and time mentioned hereinabove again.




Contracting Officer
Receiving the Document
Name & Surname
Position
Signature

[Letterhead of contracting entity]
Procurement register number
:
Name of contracting entity
:
Name of work
:
Date and time of issuing minutes
: Date: _ _/_ _/_ _ _ _ ..................... Time: _ _:_ _



MINUTES FOR RECEIVING [application for prequalification/ application for qualification/ procurement tender envelope] by TENDER COMMISSION

Line No
NAME/ TITLE OF CANDIDATE/ TENDERER
1

2

3

4

5

6

7

...

...

n

Necessary lines shall be added to the table.

   ........ (.............) [Application for prequalification/ application for qualification/ procurement tender envelope] detailed hereinabove has/have reached to our Commission through the contracting entity until the time of commencement of [evaluation on prequalification/ evaluation on qualification/ procurement]. [Application for prequalification/ application for qualification/ procurement tender envelope] stored until the time of [evaluation on prequalification/ evaluation on qualification/ procurement] has/ have been received on _ _ / _ _ / _ _ _ _ at _ _:_ _.




Delivering

Receiving Tender Commission
Contracting Officer

Chairman
Member
Member
Member
Member
Name & Surname

Name & Surname
Name & Surname
Name & Surname
Name & Surname
Name & Surname
Position

Position
Position
Position
Position
Position
Signature

Signature
Signature
Signature
Signature
Signature



ANNEXES:
ANNEX-1) ..... [Application for prequalification/ application for qualification/ procurement tender envelope]

[Letterhead of contracting entity]
Procurement register number
:
Name of contracting entity
:
Name of work
:
Date and time of application/ tender
:
Date and time of receiving application/ tender

: Date: _ _/_ _/_ _ _ _ ..................... Time: _ _:_ _
Date of issuing minutes
: Date: _ _/_ _/_ _ _ _ ..................... Time: _ _:_ _







MINUTES FOR TIME OF RECEIPT OF [application for prequalification/ application for qualification/ procurement tender envelope] THAT ARE NOT PROCESSED DUE TO DELAY IN MAIL SERVICE


   [Application for prequalification/ application for qualification/ procurement tender envelope] of [name or trade title of candidate/ tenderer] has reached to our contracting entity after the deadline date and time of application indicated in the announcement for [prequalification/ procurement] via mail at the date and time written hereinabove.




Officer Delivering the Mail

Contracting Officer
Name & Surname

Name & Surname
Position

Position
Signature

Signature


[Letterhead of contracting entity]
Procurement register number
:
Name of contracting entity
:
Name of work
:
These minutes hereby have been issued on _ _/_ _/_ _ _ _ ..................... at _ _:_ _.






MINUTES OF TENDER COMMISSION CONCERNING THE [application for prequalification/ application for qualification/ tender] ENVELOPES THAT ARE DISQUALIFIED SINCE THEY ARE NOT FOUND APPROPRIATE

Line No.
NAME/ TITLE OF CANDIDATE/ TENDERER
REASON OF DISQUALIFICATION
1


2


3


4


5


6


7


...


...


n




Since .... (.............) [application for prequalification/ application for qualification/ procurement tender envelope] is/are not in compliance with the provisions set forth in paragraph one of Article 30 of Law #4734, it/ they has/have been disqualified owing to the reasons described hereinabove.




TENDER COMMISSION



Chairman
Member
Member
Member
Member
Name & Surname
Name & Surname
Name & Surname
Name & Surname
Name & Surname
Position
Position
Position
Position
Position
Signature
Signature
Signature
Signature
Signature

[Letterhead of contracting entity]
Procurement register number
:
Name of contracting entity
:
Name of work
:
Name of minutes
:
Date and time of filling in the form
: Date: _ _/_ _/_ _ _ _ ..................... Time: _ _:_ _

MINUTES FOR OPENING ENVELOPES AND CHECKING DOCUMENTS5

Name or Trade Title of Candidate/ Tenderer
Document 1
Document 2
Document 3
Document 4
Document 5
Document 6
Document 7
Document 8
...
Document n

Name of document










Candidate/ Tenderer 1










Candidate/ Tenderer 2










Candidate/ Tenderer 3










Candidate/ Tenderer 4










Candidate/ Tenderer 5










.......










Candidate/ Tenderer n











TENDER COMMISSION

Chairman
Member
Member
Member
Member
Name & Surname
Name & Surname
Name & Surname
Name & Surname
Name & Surname
Position
Position
Position
Position
Position
Signature
Signature
Signature
Signature
Signature
[Letterhead of contracting entity]
Procurement register number
:
Name of contracting entity
:
Name of work
:
Date and time of filling in the minutes
: Date: _ _/_ _/_ _ _ _ ..................... Time: _ _:_ _



MINUTES FOR REASONS OF DISQUALIFICATION OF THE IMPROPER DOCUMENTS6

CANDIDATE/ TENDERER
DOCUMENT
REASON OF DISQUALIFICATION





















* If more than one certificate of a candidate/ tenderer is disqualified, one line shall be used for each document in the column "DOCUMENT", and the number of lines in the table can be increased as necessary.

TENDER COMMISSION


Chairman
Member
Member
Member
Member
Name & Surname
Name & Surname
Name & Surname
Name & Surname
Name & Surname
Position
Position
Position
Position
Position
Signature
Signature
Signature
Signature
Signature

Procurement register number1
:

Name of contracting entity
:

Name of procurement
:

Date and time of filling in the form
:
..../...../......... , ..../....

WORK EXPERIENCE CERTIFICATE UPDATING AND EVALUATING FORM7
I
II
III
IV
V
VI
VII
VIII
IX
Name, Surname/ Trade Title of Tenderer
Type of Work Experience Certificate 2

Date of Contract 3
Value of Certificate
Coefficient for Evaluation4
Converted Amount
Coefficient for Updating
                         (f)
Value of certificate updated
Result
[Qualified/ Disqualified]






Basis TEFE
(d) 5
TEFE on the date of first announcement for procurement (e) 6
Coefficient for updating
(e) / (d) = (f)





(a)
(b)
(a)x(b)=(c)



(c) x (f)

...........










...........










n











TENDER COMMISSION


Chairman
Member
Member
Member
Member


Name & Surname
Name & Surname
Name & Surname
Name & Surname
Name & Surname


Position
Position
Position
Position
Position


Signature
Signature
Signature
Signature
Signature






1
The number obtained from the Public Procurement Authority shall be written.


2
Whether the certificate is a work completion/ work status/ subcontractor- work completion/ work supervision/ work management certificate shall be indicated herein.


3
In respect of works that are contracted over the unit costs in the estimated cost schedule, the year related to the costs taken as basis for estimation shall be written, and in respect of works that are contracted over turnkey lump sum or unit cost, the date of contract shall be written.


4
1/10 shall be written for work management certificates, 1/5 for work supervision certificates and 1/1 for the other certificates in relation to the works performed domestically, and 1/20 shall be written for work management certificates, 1/10 for work supervision certificates and 1/2 for the other certificates in the relation to the works performed abroad.


5
In respect of works that are contracted over the unit costs in the estimation schedule domestically, the TEFE (Wholesale Price Index) in December of previous year published in January of the year taken as basis for the contract unit costs, and the TEFE of previous month, which is published in the month including the date of contract shall be written in respect of works that are contracted turnkey over lump sum or unit costs


6
The TEFE of previous month, which is published in the month including the date of first announcement for procurement or date of invitation shall be written in respect of works that are contracted over unit costs in the domestic estimation and the works that are contracted over turnkey lump sum and unit costs.


Note:
a-If certificates of graduation are given instead of work experience certificates, "Certificate of Graduation" shall be written in Column (II), year of graduation shall be written in Column (III), amount set forth in Article 62/h of Law shall be written in Column (IV), the figure that is found by deducting the year of procurement from the year of graduation shall be written in Column (V), and the figure that is found by multiplying the figure in Column (V) with the figure in Column (IV) shall be written in Column (VIII) and evaluation shall be made over this amount. If the year of graduation is within the same calendar year with the year of procurement, the value of Column (IV) shall be assumed as 1.
b-In respect of certificates issued in foreign currency, the value of certificate in foreign currency shall be written in Column (IV), and coefficient for evaluation shall be written in Column (V), and the converted amount shall be written in Column (VI), and foreign exchange buying rate of the Central Bank on the date of first announcement of procurement/ prequalification or invitation shall be written in Column (VII) and the amount that is found by multiplying the columns (VI) and (VII) shall be written in Column (VIII) and the evaluation shall be made over such amount.


[Letterhead of contracting entity]
Procurement register number
:
Name of contracting entity
:
Name of work
:
Date of filling in the minutes
:



MINUTES FOR RESULT OF EVALUATION OF [prequalification/ qualification]



CANDIDATES THAT APPLY FOR [prequalification/ qualification]



Candidate/ Tenderer 1
Candidate/ Tenderer 2
Candidate/ Tenderer 3
....
....
....
Candidate/ Tenderer n



RESULT OF EVALUATION OF [prequalification/ qualification] of CANDIDATES THAT ARE PROCESSED FOR EVALUATION




Qualified/ Disqualified
Reasons of Disqualification
Candidate/ Tenderer 1


Candidate/ Tenderer 2


Candidate/ Tenderer 3


....


....


....


Candidate/ Tenderer n






TENDER COMMISSION


Chairman
Member
Member
Member
Member
Name & Surname
Name & Surname
Name & Surname
Name & Surname
Name & Surname
Position
Position
Position
Position
Position
Signature
Signature
Signature
Signature
Signature
[Letterhead of contracting entity]
Procurement Register Number*
:

Number
:

Subject
:
Notification to the candidates/ tenderers that are not found qualified as a result of evaluation on [prequalification/ qualification]
Date of decision on qualification
:
_ _/_ _/_ _ _ _

This letter has been [delivered to you personally/ sent via registered & prepaid mail] on _ _/_ _/_ _ _ _ not exceeding the period of three days as from the date of decision on qualification.

[address of candidate/ tenderer]
   Messrs. [name or trade title of candidate/ tenderer],

REF   : Your application for [prequalification/ application] registered on _ _/_ _/_ _ _ _ under line no ......................

   Thank you for participating in the qualification procedure of [the name of work]. We regret notifying you that you have not been found qualified in the evaluation owing to the reason(s) set forth herein below8:

...
...
...
...
...

   Seventh day following the date of mailing this letter shall be the date of notification of decision to you. It is possible for you to make written complaint to our contracting entity as per Articles 54 and 55 of Law #4734 within fifteen days following this date or the date of delivering the notification letter to you personally. A decision with reasons thereof shall be taken by our contracting entity within thirty dates following the date of complaint, and notified to all candidates/ tenderers within seven days. If any decision is not taken within such period or the decision taken is not approved by you, it is possible for you to apply to the Public Procurement Authority for review within fifteen days following date of expiry of the period of taking decision or date of decision.

   It is submitted for your knowledge and necessary action.





Contracting Officer

Name & Signature

Position

Signature

[Letterhead of contracting entity]
Procurement register number*
:
Number
:
Subject
: Invitation for Procurement
Date of prequalification
: _ _/_ _/_ _ _ _

This letter has been [delivered to you personally/ sent via registered & prepaid mail] on _ _/_ _/_ _ _ _















[address of candidate]
Messrs.
[name or trade title of candidate],


REF
: Your application for prequalification registered on _ _/_ _/_ _ _ _ under line no .........

   This is to confirm that you have been found qualified as a result of evaluation on prequalification made in relation to [the name of work]. You are hereby kindly requested to submit your tender to be drawn up in compliance with the tender document in order to participate in the procurement to the address indicated in the tender document until _ _/_ _/_ _ _ _9 at _ _:_ _ at the latest.

   It is hereby submitted for your knowledge and necessary action.

The place where the tender document can be reviewed
:
The place where the tender document can be purchased
:
Sale price of tender document
:




Address:
[address of contracting entity]
Contracting Officer

[phone and fax of contracting entity]
Name & Surname

[e-mail of contracting entity (if any)]
Position


Signature

[Letterhead of contracting entity]
Procurement register number*
:
Number
:
Subject
: Invitation to submit technical tender10
Date of decision on prequalification
: _ _/_ _/_ _ _ _


This letter has been [delivered to you personally/ sent via registered & prepaid mail] on _ _/_ _/_ _ _ _















[address of tenderer]
Messrs.
[name or trade title of tenderer],


REF
: Your application for qualification registered on _ _/_ _/_ _ _ _ under line no .........

   This is to confirm that you have been found qualified as a result of evaluation on qualification made in relation to [the name of work]. You are hereby kindly requested to submit your technical tender not including the price to be drawn up in compliance with the tender document in order to participate in the procurement to the address indicated in the tender document until _ _/_ _/_ _ _ _11 at _ _:_ _ at the latest. The technical tenders to be submitted by you shall be opened in before the tenderers and participants on _ _/_ _/_ _ _ _ at _ _:_ _, and negotiations shall be made with each tenderer on the technical tenders submitted.

   It is hereby submitted for your knowledge and necessary action.




Address:
[address of contracting entity]
Contracting Officer

[phone and fax of contracting entity]
Name & Surname

[e-mail of contracting entity (if any)]
Position


Signature

[Letterhead of contracting entity]
Procurement register number*
:
Number
:
Subject
: Invitation to submit tenders


This letter has been [delivered to you personally/ sent via registered & prepaid mail] on _ _/_ _/_ _ _ _











[address of tenderer]

Messrs.
[name or trade title of tenderer],




   You are hereby kindly requested to submit your tender including the price, which shall be drawn up [on the basis of technical specification with clarified conditions after reviewing on the technical tender submitted by you as a result of the negotiations1] in relation to [the name of work] to the address indicated in the tender document until _ _/_ _/_ _ _ _ at _ _:_ _ at the latest. [Technical specification annexed to our letter consists of;
   1) .....................................................................................
   2) .....................................................................................
   3) .....................................................................................
   4) .....................................................................................
   5) ....................................................................................
   ... (Lines shall be added to this section as necessary).]1





Address:
[address of contracting entity]
Contracting Officer

[phone and fax of contracting entity]
Name & Surname

[e-mail of contracting entity (if any)]
Position


Signature









_________________________
* This shall be obtained from the Public Procurement Authority.
1 These expressions shall not be used in the procurements that are held as per items (b) and (c) of Article 21 of Law #4734.
LETTER OF APPLICATION

Procurement register number:
_ _/_ _/_ _ _ _

[Address of contracting entity]
[Name of work]

TO THE TENDER COMMISSION OF .....................
   [city where the contracting entity is seated]

1.   We, as authorized to represent and act on behalf of [name of candidate/ tenderer] (hereinafter referred to as "Applicant"), hereby apply for evaluation of qualification in relation to the procurement of [name of work] by reviewing and understanding all requirements for qualification and the related information.
2.   Your contracting entity and authorized representatives are authorized to make all inquiries and investigations in order to verify the notices, documents and information submitted with this application, and may require explanation from our banks and customers in relation to any kind of financial and technical matter. This letter of application shall also serve as a letter of authorization for any member or authorized representative of any organization mentioned in the supporting information in order to get information and to verify the notices and information given or sources, experiences and qualification of the Application if deemed necessary and requested by your contracting entity.
3.   Your contracting entity and authorized representatives can contract with the following people in order to get more information. The initial names and signatures shall be fully authorized to act on behalf of the Applicant.

Contact 1
[address and the units that can be communicated]
Contact 2
[address and the units that can be communicated]

4.   This application is made with full comprehension of the following:
a)   Your contracting entity reserves the right to cancel the qualification procedure and reject all applications.
b)   Your contracting entity shall not be responsible for the actions set forth in Article 4(a) hereinabove.
5.   We, the undersigned, hereby declare that  the commitments and information given in this application are complete, real and true with every detail.

Signature
Signature
Name
Name
Name/ Title of Application (Pilot or Coordinator Partner in Joint Ventures)
Name of Partner (if any)

Signature
Signature
Name
Name
Name of Partner (if any)
Name of Partner (if any)
Note: The notarized letters of authorization and signature circulars of the people, whose signatures are subscribed above, shall be annexed to this letter of application.

TURNKEY LUMP SUM TENDER LETTER

Procurement register number:
_ _/_ _/_ _ _ _


TO THE TENDER COMMISSION OF ....................

[city where the contractıng entıty ıs seated]


Tenderer's

Name, surname/ trade title, nationality
:
Full notification address
:
Associated tax office and tax number
:
Phone and fax number
:
E-mail (if any)
:
      
      This is to verify that we have duly reviewed and read all documents comprising the tender document for [the name of work], which shall be awarded on _ _/_ _/_ _ _ _ by your contracting entity, and we have visited the location of work, surrounding areas and the features of the location and the ground conditions, and accepted all conditions without any distinction and limitation.
   1- We hereby agree and guarantee to perform the said work against the turnkey lump sum of ............ (in figures and words) ................ exclusive of VAT.
   2- Our tender shall be valid for ........... [in figures and words] 12 calendar days as from the date of procurement.
   3- We hereby declare that we have not submitted more than one tender directly or indirectly and personally or by proxy for us or on behalf of others for the work, which is the subject matter of procurement, as per Article 17/d of Law #4734.
   4- We know and agree that you do not have to select any tender or the lowest tender.
5- In respect of other works that will be carried out/ caused to be carried out by your contracting entity in relation to the work, which is the subject matter of procurement, we hereby warrant that we shall not enter into any action and formation on contrary to the interests of your contracting entity.
   6- We are acting as [domestic/ foreign] tenderer according to the definition of "domestic tenderer" as per Article 4 of Law #4734.
   
   Sincerely,
Name, surname- Stamp of Company
Revenue Stamp- Signature13

UNIT COST TENDER LETTER
Procurement register number:
_ _/_ _/_ _ _ _

TO THE TENDER COMMISSION OF ...........................

[City where the contractıng entıty ıs seated]


Tenderer's

Name, surname/ trade title, nationality
:
Full notification address
:
Associated tax office and tax number
:
Phone and fax number
:
E-mail (if any)
:

      This is to verify that we have duly reviewed and read all documents comprising the tender document for [the name of work], which shall be awarded on _ _/_ _/_ _ _ _ by your contracting entity, and we have visited the location of work, surrounding areas and the features of the location and the ground conditions, and accepted all conditions without any distinction and limitation.
   1- We hereby agree and guarantee to perform the said work against ............ (in figures and words) ................ exclusive of VAT over the unit costs that we have proposed for each item indicated in the unit cost schedule annexed to this tender.
   2- We hereby agree that the quantity and nature of each item included in the tender schedule are in compliance with the technical specification and projects included in the tender document.
   3- Our tender shall be valid for ........... [in figures and words] 14 calendar days as from the date of procurement.
   4- We hereby declare that we have not submitted more than one tender directly or indirectly and personally or by proxy for us or on behalf of others for the work, which is the subject matter of procurement, as per Article 17/d of Law #4734.
   5- We know and agree that you do not have to select any tender or the lowest tender.
6- In respect of other works that will be carried out/ caused to be carried out by your contracting entity in relation to the work, which is the subject matter of procurement, we hereby warrant that we shall not enter into any action and formation on contrary to the interests of your contracting entity.
   7- We are acting as [domestic/ foreign] tenderer according to the definition of "domestic tenderer" as per Article 4 of Law #4734.

   Sincerely,
Name, Surname- Stamp of Company
Revenue Stamp- Signature15

Annex: Unit cost tender schedule

UNIT COST TENDER SCHEDULE
Procurement Register Number:
A1
B2
Line No
Item No
Name and Brief Description of Item
Quantity
Unit of Measure
Unit Cost Proposed
Amount
































































































































































































































TOTAL AMOUNT (Excl. V.A.T.)

* Lines shall be inserted to the table as necessary.




Name & Surname 3- Stamp of Company
Signature



Procurement register number*
:
Name of contracting entity
:
Name of work
:
Date of filling in the form
: Date: _ _/_ _/_ _ _ _ Time: _ _:_ _

PRICES PROPOSED BY TENDERERS16


Amount of Tender

In Figures
In Words
Tenderer 1


Tenderer 2


Tenderer 3


Tenderer 4


Tenderer 5


Tenderer 6


Tenderer 7


....


Tenderer n


................. tenderer(s) has/have participated in the procurement and the prices proposed by him/them are indicated hereinabove and have been disclosed to the participants.


TENDER COMMISSION

Chairman
Member
Member
Member
Member
Name & Surname
Name & Surname
Name & Surname
Name & Surname
Name & Surname
Position
Position
Position
Position
Position
Signature
Signature
Signature
Signature
Signature
RESOLUTION OF TENDER COMMISSION17

Procurement register number*
:
Resolution number
:
Name of contracting entity
:
Name of work
:
Date and time of procurement
: Date: _ _/_ _/_ _ _ _ , Time: _ _:_ _
Procurement procedure
:
Total number of tenders
:
Number of valid tenders
:

Economically most advantageous tender

a) name/ trade title of tenderer
:
b) amount


Economically most advantageous second tender

a) name/ trade title of tenderer
:
b) amount
:

Date and time of issuance of these minutes

: Date: _ _/_ _/_ _ _ _ , Time: _ _:_ _

Amounts Proposed by Tenderers
Name/ Trade Title of Tenderer
Amount Proposed
Tenderer 1

Tenderer 2

Tenderer 3

............

Tenderer n


[the proceedings conducted since the beginning of the activities of the tender commission and the reasons of taking such a resolution, and the opinion of commission about the economically most advantageous first and second tenders, and if there is a tenderer that is qualified, the grounds of such disqualification, and if the procurement is not held, a detailed explanation of the grounds of not holding the procurement shall be written in this section]

TENDER COMMISSION

Chairman
Member
Member
Member
Member
Name & Surname
Name & Surname
Name & Surname
Name & Surname
Name & Surname
Position
Position
Position
Position
Position
Signature
Signature
Signature
Signature
Signature

Annex: Letter of confirmation evidencing that the tenderer awarded is not banned from participating in procurements.

[Letterhead of contracting officer]

Procurement register number*
:
Number
:
Subject
: Final procurement resolution
Date of procurement resolution
: _ _/_ _/_ _ _ _
Date of approval of procurement resolution
: _ _/_ _/_ _ _ _



This letter has been [delivered to you personally/ sent via registered & prepaid mail] on _ _/_ _/_ _ _ _

















[address of tenderer]

Messrs.
[name or trade title of tenderer],



   REF
: Your tender registered on _ _/_ _/_ _ _ _ under line no. ...............


The contract for [the name of work] is awarded to [name or trade title of the tenderer that is awarded the contract]. Economically most advantageous second tenderer is [name or trade title of the economically most advantageous second tenderer].   

[if this letter is sent to the tenderer whose tender is not evaluated or not found appropriate, the reasons of not evaluating or not finding appropriate the tender shall be written herein briefly]


If this letter is notified personally, it shall be deemed notified on the same day, and sent via mail service, it shall be deemed notified on the seventh (7th) day following the date of giving to the mail service. If the tenderers whose tenders are not taken into consideration or not found appropriate make written request within five (5) days following the date of notification, the reasons of not taking into consideration or not finding appropriate the tenders shall be indicated in detail. I hereby kindly request you to be informed as per Article 41 of Public Procurement Law #4734.

Contracting Officer

Name & Surname

Position

Signature
[letterhead of contracting entity]

Procurement register number*
:
Number
:
Subject
: Procurement resolution cancelled
Date of cancellation of procurement
: _ _/_ _/_ _ _ _
Date of cancellation of procurement resolution
: _ _/_ _/_ _ _ _


This letter has been [delivered to you personally/ sent via registered & prepaid mail] on _ _/_ _/_ _ _ _

















[address of tenderer]

Messrs.
[name or trade title of tenderer],



                REF
: Your tender registered on _ _/_ _/_ _ _ _ under line no. ...............


   The procurement concerning [the name of work] has been cancelled [owing to/on grounds of] [the reason of canceling the procurement shall be written herein briefly].

If this letter is notified personally, it shall be deemed notified on the same day, and sent via mail service, it shall be deemed notified on the seventh (7th) day following the date of giving to the mail service. If you make written request within five (5) days following the date of notification, the reasons of cancellation of the procurement resolution shall be indicated in more detail. I hereby kindly request you to be informed as per Article 41 of Public Procurement Law #4734.



Contracting Officer

Name & Surname

Position

Signature


[letterhead of contracting entity]
   
Procurement register number*
:
Number
:
Subject
: Cancellation of procurement owing to the rejection of all tenders   
Date of procurement
: _ _/_ _/_ _ _ _
Date of cancellation of procurement

: _ _/_ _/_ _ _ _


This letter has been sent to you via registered & prepaid mail on _ _/_ _/_ _ _ _.

















[address of tenderer]

Messrs.
[name or trade title of tenderer],



                REF
: Your tender registered on _ _/_ _/_ _ _ _ under line no. ...............


Pursuant to the resolution of tender commission, all tenders concerning [the name of work] have been rejected and the procurement has been cancelled. The seventh (7th) day following the date of giving this letter to the mail service shall be deemed as the date of notification of resolution to you. If you make a written request within five days as from this date, the reasons of cancellation of procurement resolution shall be notified by our contracting entity.
It is hereby submitted for your knowledge.









Contracting Officer

Name & Surname

Position

Signature

[letterhead of contracting entity]
Procurement register number*
:
Number
:
Subject
: Invitation to conclude the contract
Date of approval of procurement resolution
: _ _/_ _/_ _ _ _


This letter has been [delivered to you personally/ sent via registered & prepaid mail] on _ _/_ _/_ _ _ _















[address of tenderer]

Messrs.
[name or trade title of tenderer],


           REF
: Your tender registered on _ _/_ _/_ _ _ _ under line no. ...............





   The contract of [the name of work] has been awarded to you. You are kindly requested hereby to submit the documents evidencing that you are not in the cases set forth in items (a), (b), (c), (d), (e) and (g) of the last paragraph of Article 10 of Law #4734 as well as the performance bond at 6% of the procurement amount and complete the other necessary proceedings and conclude the contract of the work, which is the subject matter of procurement. The seventh (7th) day following the date of giving this letter to the mail service shall be deemed as the date of notification to you18.

   It is submitted hereby for your knowledge and necessary action.





Contracting Officer

Name & Surname

Position

Signature






ANNOUNCEMENT FOR PROCUREMENT RESULT19
[name of contracting entity]

Procurement register number*
:
1)   Work to be procured

a)   Name
:
b)   Nature, type and quantity
:
c)   Location
:
d)   Date of commencement and
   completion
:


2)   Contract amount

a)   Resource
:
b)   Amount of resource
:


Totally ........ tenders have been submitted for the procurement of [name of work] and ......... of these tenders have been deemed valid. The said procurement of works has been awarded to [name of contractor/ trade title of contractor] against the amount of ........................... on _ _/_ _/_ _ _ _ through the [open tender procedure/ restricted tender procedure/ negotiated tender procedure]. It is hereby kindly publicized.


TO THE TENDER COMMISSION OF ..................................
                  [city where the contracting entity is seated]



Procurement register number*:

1) This is to certify that [I/we am/are] taking part in [the name of work] as a tenderer. As of the date of this letter of commitment, [I/we] hereby declare that [I am / we are / not] in the circumstances set forth in items (a), (b), (c), (d), (e), (g) and (i) of the last paragraph of Article 10 of Law No. 4734. If any change occurs in this case, [I/we] undertake to notify the same to the Contracting Entity promptly.

2) If [I/we] am/are awarded the contract, [I/we] hereby agree and represent to submit the certificates evidencing that [I/we am/are not] in the circumstances set forth in items (a), (b), (c), (d), (e) and (g) of the last paragraph of Article 10 of Law No. 4734 before concluding the contract.

3) Otherwise, [I/we] hereby agree that the Bid Bond shall be registered as revenue and the penalty stipulated under Article 58 of the Law shall be applied for [me / us].


-- / -- / ----
Name, Surname1
Stamp of Company
Revenue Stamp – Signature




















_______________________________
* The procurement register number shall be entered by the contracting entity before this Standard Form is attached to the tender document.
1 This section must be signed by the tenderer or the person authorized to submit tender. In the case of joint ventures (joint venture or consortium), this letter of commitment shall be submitted by each partner separately.




Standard Form- KIK027.0/Y
Letter of Commitment Evidencing That Tenderers Are Not Those That Will Be Disqualified From the Procurement and Those That Will Not Be Able To Participate In The Procurement During Submittal of Tenders In Open, Restricted and Negotiated Tender Procedures


TO THE TENDER COMMISSION OF ..................................
                  [city where the contracting entity is seated]



Procurement register number*:

1) This is to certify that [I/we am/are] taking part in [the name of work] as a/an [tenderer/ applicant]. As of the date of this letter of commitment, [I/we] hereby declare that [I am / we are / not] in the circumstances of disqualification from the procurement set forth in the last paragraph of Article 10 of Law No. 4734 and [I am / we are / not] in the circumstances of those that cannot participate in the procurement as per Article 11 of the same Law. If any change occurs in this case declared, [I/we] undertake to notify the same to the Contracting Entity promptly.

2) Otherwise, [I/we] hereby agree that the Bid Bond shall be registered as revenue and the penalty stipulated under Article 58 of the Law shall be applied for [me / us].


-- / -- / ----
Name, Surname1
Stamp of Company
Revenue Stamp – Signature




















_______________________________
* The procurement register number shall be entered by the contracting entity before this Standard Form is attached to the tender document.
1 This section must be signed by the applicant or the person authorized to make application. In the case of joint ventures (joint venture or consortium), this letter of commitment shall be submitted by each partner separately.




Standard Form- KIK027.1/Y
Letter of Commitment Evidencing That Applicants Are Not Those That Will Be Disqualified From the Procurement and Those That Will Not Be Able To Participate In The Procurement During The Prequalification Stage In Restricted Tender Procedure and During Qualification Stage in the Negotiated Tender Procedure


TO THE TENDER COMMISSION OF ..................................
                  [city where the contracting entity is seated]



Procurement register number*:

We hereby agree and warrant that [certificate of work completion/ work status/ work supervision/ work management] submitted by ............................. [the candidates/ tenderers] within the scope of [tender/ application] in relation to ................... [work], the procurement of which shall be held on ..../..../200... belongs to ..................... in respect of the shareholders holding more than half of the shares at this [candidate/ tenderer];

and that the said percentage of share shall be maintained during the period of performance bond (until final acceptance) and all work experience certificates issued in the name of the holder of certificate shall only be made available to this tenderer only as long as this percentage of share is maintained in the said [candidate/ tenderer], and that it shall not be made available to the other corporate bodies in order to enable them to participate in procurements.



-- / -- / ----
Name, Surname/ Trade Title1
Stamp of Company
Revenue Stamp – Signature









Note: The letter of commitment shall be notarized.





_______________________________
* The procurement register number shall be entered by the contracting entity before this Standard Form is attached to the tender document.
1 The person that makes available the work experience certificate to the candidate or tenderer that holds more than half of the shares and the person that uses the work experience certificate in order to be able to participate in the procurement shall sign here separately as per item (d) of Article 55 of Regulation on Implementation of Works Procurements.






Standard Form – KIK027.2/Y
Letter of Commitment Stating That Work Experience Certificate
Shall Not Be Made Available To Another Corporate Body


TO THE TENDER COMMISSION OF ..................................
                  [city where the contracting entity is seated]



Procurement register number*:

[I/ we] hereby declare that [I/ we] am/are partner to the personal companies and hold more than half of the capital of the capital companies, the names/ trade titles and other particulars of which are written below. [I/ we] hereby agree and represent to notify any change in this situation.

There is not any partnership and share that is required to be declared. [I/ we] hereby agree and represent to notify any change in this situation.1

DECLARATION OF PARTNERSHIP / SHARE
Name/ Trade Title

Partnership/ Percentage of Share

Tax Identification Number

Chamber of Commerce/ Industry/ Craftsmen

Commerce / Craftsmen Register Number

Address

Postal Code

Province / District

Tel – Fax

E-mail

Web Site




-- / -- / ----
Name, Surname2
Stamp of Company
Signature











_______________________________
* The procurement register number shall be entered by the contracting entity before this Standard Form is attached to the tender document.
1 Only this section shall be written if there is not any partnership and/or share to be declared.
2 This must be signed by the tenderer or the person authorized to submit tender. In the case of joint ventures (joint venture or consortium), the declaration shall be submitted by each partner separately.


Standard Form – KIK027.3/Y
Declaration To Be Given By Those That Will Participate In Procurement
For Their Partnerships and/or Shares In Corporate Bodies
JOINT VENTURE DECLARATION


Procurement register number*:

We have entered into a private joint venture in order to submit joint tender to [the name of work] tendered by [the name of contracting entity] and perform and prosecute the work after concluding the contract if we are awarded the contract. If we are awarded the contract, the joint venture agreement shall be notarized and submitted to the Contracting Entity before the contract is concluded. Pilot partner of our joint venture shall be [name of the pilot partner] until the completion of work.

If we are awarded the contract as a result of the joint tender that we submit, we hereby declare, accept and guarantee that the contract shall be signed by all partners and our partner indicated as the pilot partner shall have the full power to act for and on behalf of our joint venture in respect of all issues concerning the contract, and that each of us shall be jointly and successively liable for performing the works and commitments within the subject and scope of the contract that will be concluded as well as fulfilling the obligations arising from the contract and undertaken by our joint venture, and that we shall not leave the private joint venture that we have established, otherwise, [the name of contracting entity] shall be authorized to terminate the contract and register the performance bond as revenue, and that all communications and notifications to the pilot company shall be deemed to be made to our joint venture, the pilot partner and the remaining partners of the joint venture shall undertake all obligations and liabilities of the work including the performance bond in the events of death, bankruptcy, heavy disease, detention or imprisonment to the extent to limit the freedom or dissolution of any of the partners in the joint venture except for the pilot partner before the subject work is completed.

Item No.
Name of partner in the joint venture
Percentage of Share
Notification Address
1)



2)



3)



..)



n)





PILOT
PARTNER
Signature
PRIVATE PARTNER
Signature
PRIVATE PARTNER
Signature
PRIVATE PARTNER
Signature
PRIVATE PARTNER
Signature



Revenue Stamp



_______________________________
* The procurement register number shall be entered by the contracting entity before this Standard Form is attached to the tender document.


Standard Form – KIK028.0/Y
Joint Venture Declaration

BID BOND

-- / -- / ----
No: .........

As [the name of bank or private financial body] guarantees TL [amount of Bid Bond]1, which is the amount of Bid Bond required from [the name of tenderer] that will take part in the tender of [the name of work] tendered by your Contracting Entity according to the provisions of Law No. 4734 and tender document, and provided that the cases requiring registering the Bid Bond as revenue arises pursuant to the provisions of Public Procurement Law No. 4734 and the tender documents, we, the authorized signatories and representatives of [the name of bank or private financial body], hereby represent and declare for and on behalf of [the name of bank / private financial body] that we shall pay the amount written above promptly at your first demand without any delay to your Contracting Entity or order in cash and completely as well as the legal interests incurred from the date of such demand until the date of payment without any necessity to issue a notice, procure court order and take the permission of the said tenderer and irrespective of any dispute that may arise between the mentioned tenderer and your Contracting Entity as well as disregarding any conclusion and legal consequences of this dispute.

This Bid Bond shall remain valid until ......../....../...........2 and shall become void if we do not receive any written claim for indemnification until such date.

In the event of indemnification under this Bid Bond, the sum of Bid Bond, which is .................3, shall be paid to you.


[name of bank or private financial body]
[name of branch of the bank or private financial body] Branch
Name, Position and Signature of
Authorized Persons of [name of bank or private financial body]




NOTE:
a) In the case of Bid Bonds furnished based upon the counter-guarantee of foreign banks or similar credit bodies, the name of the foreign bank or credit body providing the counter-guarantee and that the Bid Bond is furnished under counter-guarantee shall be specified. If the currency taken as basis for tender is Turkish Lira, the Bid Bonds that will be issued under counter-guarantee shall be in Turkish Lira.
b) If the foreign currencies or submitting tenders in foreign currencies are allowed under "Currency Applicable for Tenders and Payments" of the Administrative Specification, the tenderers shall issue their Bid Bonds in the currency applicable for tenders.



____________________________
1 The related currency shall be entered here in respect of the Bid Bonds that will be furnished in foreign currency.
2 This period shall be determined by the tenderer, but not less than 30 days following the expiry of the validity period of tender, according to Article 35 of Law No. 4734.
3 In the event of payment, it is essential the repayment be made in the currency of the bid bond by the bank and though the bid bonds issued in foreign currencies are accepted by the contracting entity, in cases where the collection can only be made in Turkish Lira as per the financial legislation of the contracting entity, it shall be written that the payment shall be effected over the foreign exchange selling rate of the Central Bank applicable on the date of payment.



Standard Form – KIK029.0/Y
Bid Bond
PERFORMANCE BOND
-- / -- / ----
No: .........
As [the name of bank or private financial body] guarantees TL [amount of performance bond]1, which is the amount of performance bond required from [the name of contractor] that has undertaken [the name of work] as a result of the procurement held by your Contracting Entity in order to fulfill the provisions of Law No. 4734, Law No. 4735, tender document and contract, and provided that the Contractor fails to fulfill the provisions of the said Laws, tender document and contract partially or wholly;

We, the authorized signatories and representatives of [the name of bank or private financial body], hereby represent and declare for and on behalf of [the name of bank / private financial body] that we shall pay the amount written above promptly at your first written demand without any delay to your Contracting Entity or order in cash and completely as well as the legal interests incurred from the date of such demand until the date of payment without any necessity to issue letter of warning, procure court order and take the permission of the said contractor and irrespective of any dispute that may arise between the mentioned [name of contractor] and your Contracting Entity as well as disregarding any conclusion and legal consequences of this dispute. This performance bond shall remain valid until ......../....../...........2 and shall become void if we do not have any written claim for indemnification which may receive until the same date.

In the event of indemnification under this performance bond, the sum of performance bond, which is.................3, shall be paid to you in the currency of the performance bond issued.


[name of bank or private financial body]
[name of branch of the bank or private financial body] Branch
Name, Position and Signature of
Authorized Persons of [name of bank or private financial body]


NOTE:
a) In the case of performance bonds furnished based upon the counter-guarantee of foreign banks or similar credit bodies, the name of the foreign bank or credit body providing the counter-guarantee and that the performance bond is furnished under counter-guarantee shall be specified. If the currency taken as basis for payment is Turkish Lira, the performance bonds that will be issued under counter-guarantee shall be in Turkish Lira.
b) If the foreign currencies or submitting tenders in foreign currencies are allowed under "Currency Applicable for Tenders and Payments" of the Administrative Specification, the tenderers shall issue their Performance Bonds in the currency applicable for tenders.




__________________________
1 The related currency shall be entered here in the performance bonds to be furnished in the foreign currency.
2 This duration may not be less than the duration determined by the Contracting Entity in view of the date of approval of the final acceptance protocol in the Procurements of Works as per Article 13 of Law #4735, and the date of expiry of warranty period in the works other than the construction works if a warranty period is foreseen for the goods procured or the works carried out, and the date of completion of work as per Article 35 of Law #4734 in cases where warranty period is not foreseen.
3 In the event of payment, it is essential the repayment be made in the currency of the performance bond by the bank and though the performance bonds issued in foreign currencies are accepted by the contracting entity, in cases where the collection can only be made in Turkish Lira as per the financial legislation of the contracting entity, it shall be written that the payment shall be effected over the foreign exchange selling rate of the Central Bank applicable on the date of payment.




Standard Form – KIK029.1/Y
Performance Bond
ADVANCE PAYMENT GUARANTEE LETTER
-- / -- / ----
No: .........

As [the name of bank or private financial body] guarantees TL [amount of performance bond]1, which is the amount of advance payment guarantee required from [the name of contractor] that has undertaken [the name of work] as a result of the procurement held by your Contracting Entity in order to fulfill the provisions of Law No. 4734, Law No. 4735, tender document and contract, and provided that it is required to take this advance payment back for whatsoever reason;

We, the authorized signatories and representatives of [the name of bank or private financial body], hereby represent and declare for and on behalf of [the name of bank / private financial body] that we shall pay the amount written above promptly at your first written demand without any delay to your Contracting Entity or order in cash and completely as well as the legal interests incurred from the date of such demand until the date of payment without any necessity to issue letter of warning, procure court order and take the permission of the said contractor and irrespective of any dispute that may arise between the said contractor and your Contracting Entity as well as disregarding any conclusion and legal consequences of this dispute.

This guarantee shall take effect on the date of advance payment. This guarantee letter shall remain valid until ......../....../...........2 and shall become void if we do not receive any written claim for indemnification until such date.

In the event of indemnification under this guarantee letter, the sum of guarantee letter, which is ..................3, shall be paid to you in the currency of the guarantee letter issued.



[name of bank or private financial body]
[name of branch of the bank or private financial body] Branch
Name, Position and Signature of
Authorized Persons of [name of bank or private financial body]



NOTE:
a) In the case of guarantee letters furnished based upon the counter-guarantee of foreign banks or similar credit bodies, the name of the foreign bank or credit body providing the counter-guarantee and that the guarantee letter is furnished under counter-guarantee shall be specified. If the currency taken as basis for payment is Turkish Lira, the guarantee letters that will be issued under counter-guarantee shall be in Turkish Lira.
b) If the foreign currencies or submitting tenders in foreign currencies are allowed under "Currency Applicable for Tenders and Payments" of the Administrative Specification, the tenderers shall issue their Guarantee Letters in the currency included in the contract.



__________________________
1 The related currency shall be entered here in the guarantee letters to be furnished in the foreign currency.
2 This date must be determined by the contracting entity in view of the deduction periods.
3 In the event of payment, it is essential the repayment be made in the currency of the guarantee letter by the bank and though the guarantee letter issued in foreign currencies are accepted by the contracting entity, in cases where the collection can only be made in Turkish Lira as per the financial legislation of the contracting entity, it shall be written that the payment shall be effected over the foreign exchange selling rate of the Central Bank applicable on the date of payment.



Standard Form – KIK029.2/Y
Advance Payment Guarantee Letter

FINANCIAL STATUS STATEMENT

[name/ trade title]      :
Legally business address   :

Deposit Account and Facility As of the Date of Statement
Name of Bank
Free Deposit Account
Unused


Cash Facility
Security Facility































I hereby certify that the financial status is as given above.


                           NAME, SIGNATURE



Notes:
1-Reference letters obtained from banks shall be attached to this statement.
2-This certificate can be furnished jointly by the partners in joint ventures irrespective of their shares.
3-The currency shall be specified.



















Standard Form – KIK030.0/Y
Financial Status Statement
BANK LETTER

Name of Contracting Entity      :
[name/ trade title] of Tenderer   :


Free Deposit Account
Facilities

Unused

Cash Facility
Security Facility

































We have furnished the information given above upon the request of our customer.


-- / -- / ----
[name of bank]
Names, positions and signatures
of authorized persons


Remarks:
1-The currency shall be specified.
2-If deemed necessary by the Contracting Entity, this instrument shall be confirmed by general directorate or branch of the respective bank. The confirmations via facsimile have to bear the signatures of at least two authorized persons of the bank branch.
3-This certificate can be furnished jointly by the partners in joint ventures irrespective of their shares.













Standard Form – KIK030.1/Y
Form of Bank Letter


APOSTILLE
(Convention de la Haye du 5 Octobre 1961)

1.Country : TURKEY – LA TURQUIE
This public document ;
2.Has been signed by ..........................................
3.Acting in the capacity of ..........................................
4.Bears the seal / stamp of ..........................................

Certified
5.At ..........................................
6.The ..........................................
7.By ..........................................
8.No: ..........................................
9.Seal / Stamp               10. Signature
....................               ....................


* The Apostille shall be in the shape of square with minimum 9 cm borders 1.






















____________________________
1 Hague Convention dated 05.10.1961 took force in Turkey following the date of 29.09.1985 after it was published in the Official Gazette dated 16 September 1984 by virtue of Decree No. 84/8373 of 27.07.1984. According to Article 2 of the said convention, each of Contracting States shall be exempted from certifying the documents within the scope of this convention and that will be used in the respective country. Apostille shall be affixed on the document or on a paper attached to the document. Apostille may not only be written in the official language of the authority issuing the same, but also in a second language. However, the heading "Apostille Convention de la Haye du 5 Octobre 1961" of the Apostille has to be in French.



Standard Form – KIK031.0/Y
Form of Apostille
WORK EXPERIENCE CERTIFICATE
(Contractor – Work Completion)

Number:                                    Date: _ _ / _ _ / _ _ _ _

1. Employer (a)                     :
2. Name of Work                  :
3. Location of Work                  :
4. Construction Technique Applied (b)            :
5.  Name, Surname or Trade Name of Contractor         :
6. Percentages of Partnership in Joint Ventures (c)      :
7. First Contract Amount (d)               :
8. Total Contract Amount (e)               :
9. Date of Contract                  :
10. If the Contract is assigned; (f)
    a. Date of assignment (g)               :
    b. Amount of work at the date of assignment (h)      :
    b. Amount of work after the date of assignment    (i)      :
11. Date of temporary acceptance or settlement of work (j)   :
12. Value of Certificate (k)               :




Signature*









REMARKS
(a)   Name of the Contracting Entity awarding contract shall be indicated for the works contracted with the public sector; name & surname and trade title of the employer shall be written for the works contracted with the private sector.
(b)   In relation to the characteristics of the structure, the items such as bulk, cast, reinforced concrete, steel, wood, pretension concrete etc. with regard to the materials as well as prefabricated construction, formwork – scaffolding system, body construction technique etc. as to the construction method shall be indicated.
(c)   Single certificate shall be issued for joint venture and originals of this certificate shall be given to each partner.
(d)   For the works contracted with public or private sector, any price differences as well as the price in the contract subject to tender discount (if any) excluding VAT shall be written.
(e)   The total amount including legal increases (if any) in the first contract amount (excluding any price differences and VAT, and with tender discount if any) shall be written.
(f)   This section shall be completed with regard to the works contracted with public sector.
(g)   Certification date of Assignment Contract by Notary Public shall be written here.
(h)   The amount of works completed as of the date of assignment over the contract prices (excluding any price differences and VAT, and with tender discount if any) shall be written here.
(i)   The amount after deducting the amount of work ( 10b ) on the date of assignment ( 8 ) from the total contract amount shall be written here.
(j)   For the works contracted with the public sector, the date of temporary acceptance; and for the works contracted with the private sector, the date of (resettlement) permit shall be written here.
(k)   Total contract amount ( 8 ) shall be written. However, if the contract is assigned for the works contracted with the public sector, the amount of work (10c) completed following the date of assignment shall be written provided that at least 70% of the (first) contract amount is realized. This certificate cannot be issued if this requirement is not fulfilled.
(*)   For the works contracted with the public sector, this certificate shall be signed by the authorized body (including official seal, cachet, name and title) and for the works contracted with the private sector, this certificate shall be signed by the governorship or municipality as the case may be (including official seal, cachet, name and title).





Standard Form – KIK032.0/Y
Work Experience Certificate (Contractor- Work Completion)
WORK EXPERIENCE CERTIFICATE
(Contractor –Work Status)

Number:                                     Date: _ _ / _ _ / _ _ _ _

1. Employer (a)                     :
2. Name of Work                  :
3. Location of Work                  :
4. Construction Technique Applied (b)            :
5.  Name, Surname or Trade Name of Contractor         :
6. Percentages of Partnership in Joint Ventures (c)      :
7. First Contract Amount (d)               :
8. Total Contract Amount (e)               :
9. Completion percentage in cash/ physically of work relative
     to the first contract amount (f)               :
10. Date of Contract                  :
11. If the Contract is assigned; (g)
    a. Date of assignment (h)               :
    b. Amount of work at the date of assignment (i)         :
    b. Amount of work after the date of assignment    (j)      :
12. Value of Certificate (k)               :




Signature*









REMARKS
(a)   Name of the Contracting Entity awarding contract shall be indicated for the works contracted with the public sector; name & surname and trade title of the employer shall be written for the works contracted with the private sector.
(b)   In relation to the characteristics of the structure, the items such as bulk, cast, reinforced concrete, steel, wood, pretension concrete etc. with regard to the materials as well as prefabricated construction, formwork – scaffolding system, body construction technique etc. as to the construction method shall be indicated.
(c)   Single certificate shall be issued for joint venture and originals of this certificate shall be given to each partner.
(d)   For the works contracted with public or private sector, any price differences as well as the price in the contract subject to tender discount (if any) excluding VAT shall be written.
(e)   The total amount including legal increases (if any) in the first contract amount (excluding any price differences and VAT, and with tender discount if any) shall be written.
(f)   In respect of works that are contracted with the public sector, the ratio of the amount of last progress payment (excluding any price difference and VAT, and with tender discount, if any) in contract prices to the first contract amount shall be written. In respect of works that are contracted with the private sector, the physical completion percentage determined by the contracting entity that is authorized to submit the certificate shall be written.
(g)   This section shall be filled in for the works contracted with the public sector.
(h)   Certification date of Assignment Contract by Notary Public shall be written here.
(i)   The amount of works completed as of the date of assignment over the contract prices (excluding any price differences and VAT, and with tender discount if any) shall be written here.
(j)   The amount after deducting the amount of work ( 11b ) on the date of assignment ( 8 ) from the total contract amount shall be written here.
(k)   In respect of works that are contracted with the public sector, the amount of last progress payment accrued (including any price difference and VAT, and with tender discount, if any) in contract prices, and in respect of works that are contracted with the private sector, the figure that is found by multiplying the physical completion percentage of the work with the contract amount shall be written.
   However, if the contract is assigned for the works contracted with the public sector, the amount of work before (11.b) and after (11.c) the date of assignment shall be written provided that at least 70% of the contract amount is realized. This certificate cannot be issued if this requirement is not fulfilled.
(*)   For the works contracted with the public sector, this certificate shall be signed by the authorized body (including official seal, cachet, name and title) and for the works contracted with the private sector, this certificate shall be signed by the governorship or municipality as the case may be (including official seal, cachet, name and title).
Note: This certificate shall be issued for the works that are undergoing and minimum 70% of the first contract amount is completed.

Standard Form – KIK033.0/Y
Work Experience Certificate (Contractor- Work Completion)

WORK EXPERIENCE CERTIFICATE
(Subcontractor –Work Completion)

Number:                                     Date: _ _ / _ _ / _ _ _ _

1. Contracting Entity (a)               :
2. Employer (b)                  :
3. Name of actual work               :
4. Location of work               :
5. Name, surname or trade title of subcontractor      :
6. Portion of work performed by the subcontractor (c)   :
7. Construction technique applied (d)         :
8. Date of contract of actual work         :
9. First contract amount of actual work (e)      :
10. Total contract amount of actual work (f)      :
11. Date of contract concluded between
subcontractor and contractor (g)            :
12. Amount of contract concluded between
subcontractor and contractor (h)            :
13. Date of completion of work
performed by subcontractor (i)            :
14. Value of certificate (j)            :



Contractor- Signature (*)                  Signature (*)






REMARKS
(a)   Name of the Contracting Entity, which concluded the contract of the actual work, shall be written.
(b)   Name, surname or trade name of the contractor of work shall be written.
(c)   Name of work provided in the notarized contract concluded between the subcontractor and contractor of work shall be written.
(d)   In relation to the characteristics of the portion of actual work performed by the subcontractor, the items such as bulk, cast, reinforced concrete, steel, wood, pretension concrete etc. with regard to the materials as well as prefabricated construction, formwork – scaffolding system, body construction technique etc. as to the construction method shall be written.
(e)   The price provided in the notarized contract including any tender discount, but excluding any price difference and VAT shall be written.
(f)   The total amount including legal increases (if any) in the contract amount (excluding any price differences and VAT, and with tender discount if any) shall be written.
(g)   The notarization date of the contract concluded between the subcontractor and contractor of the actual work shall be written.
(h)   The price of the contract notarized and concluded between the subcontractor and contractor of the actual work shall be written.
(i)   The date when the subcontractor actually completed his/her work shall be written.
(j)   The lower of the contract amount provided in (12) and the amount paid to the contractor of work by the related in return for the work performed (6) shall be written.
(k)   Name, surname or trade name of the contractor shall be written and signed.
(*)    It shall be signed by the authorized body (with official seal, stamp, name and title) concluding the contract.














Standard Form – KIK034.0/Y
Work Experience Certificate (Subcontractor- Work Completion)
WORK EXPERIENCE CERTIFICATE
(Work Supervision)

Number:                                     Date: _ _ / _ _ / _ _ _ _


1. Employer (a)                  :
2. Name of work                  :
3. Location of work               :
4. Construction technique applied (b)         :
5. Name, surname of the related person         :
6. Title of contractor (c)               :
7. Certificate issued for (d)            :
8. Other persons with the same capacity (e)      :
9. First contract amount (f)            :
10. Total contract amount (g)            :
11. Date of contract               :
12. Date of temporary acceptance/
dissolution or settlement of work (h)         :
13. Worked between the dates of            :
14. Amount realized during the performance of the related
person and physical realization ratio (i)         :
15. Value of certificate (j)            :



Contractor/ Consultant Signature (k)                  Signature (*)


REMARKS
(a)   The name of the related Contracting Entity shall be written for the supervisors in the public sector or the supervisors of works contracted with the public sector.
(b)   In relation to the characteristics of the structure, the items such as bulk, cast, reinforced concrete, steel, wood, pretension concrete etc. with regard to the materials as well as prefabricated construction, formwork – scaffolding system, body construction technique etc. as to the construction method shall be written.
(c)   The professional title in the diploma of the related person shall be written.
(d)   The capacity of the related person shall be written from the letter of assignment in respect of those in charge of supervision in the public sector and from the notarized letter of commitment in respect of those in charge of supervision of the contractor.
(e)   The persons working at the same time with the same capacity and title shall be written.
(f)   The price in the notarized contract excluding any price difference and VAT, but including the tender discount of this work shall be written.
(g)   The total amount including legal increases (if any) in the contract amount (excluding any price differences and VAT, and with tender discount if any) shall be written.
(h)   The date of temporary acceptance/ dissolution of the work shall be written.
(i)   The amount of progress payment paid to the contractor of work or accrued during the term of office of the related person (excluding any price difference and VAT, but including any tender discount) and the ratio of this amount to the first contract amount shall be written.
(j)    The total amount of progress payment paid or accrued during the term of office of the related person (excluding any price difference and VAT, but including any tender discount) in the contract prices shall be written.
(k)   The name, surname or trade title of the contractor shall be written and signed in respect of those that undertook management on behalf of the contractor of works contracted with the public sector.
(*)   It shall be signed by the authorized body (with official seal, stamp, name and title) concluding the contract.








Standard Form – KIK035.0/Y
Work Experience Certificate (Work Supervision)

WORK EXPERIENCE CERTIFICATE
(Work Management)

Number:                                     Date: _ _ / _ _ / _ _ _ _


1. Employer (a)                  :
2. Name of work                  :
3. Location of work               :
4. Construction technique applied (b)         :
5. Name, surname of the related person         :
6. Title of contractor (c)               :
7. Certificate issued for (d)            :
8. Other persons with the same capacity (e)      :
9. First contract amount (f)            :
10. Total contract amount (g)            :
11. Date of contract               :
12. Date of temporary acceptance/
dissolution or completion of work (h)         :
13. Worked between the dates of            :
14. Amount realized during the performance of the related
person and cash / physical realization ratio (i)      :
15. Value of certificate (j)            :



Contractor- Signature (k)                  Signature (*)


REMARKS
(a)   The name of the related Contracting Entity shall be written for the managers in the public sector or the managers of works contracted with the public sector.
(b)   In relation to the characteristics of the structure, the items such as bulk, cast, reinforced concrete, steel, wood, pretension concrete etc. with regard to the materials as well as prefabricated construction, formwork – scaffolding system, body construction technique etc. as to the construction method shall be written.
(c)   The professional title in the diploma of the related person shall be written.
(d)   The capacity of the related person shall be written from the letter of assignment in respect of those in charge of management in the public sector and from the notarized letter of commitment in respect of those in charge of management of the contractor.
(e)   The persons working at the same time with the same capacity and title shall be written.
(f)   The price in the notarized contract excluding any price difference and VAT, but including the tender discount of this work shall be written.
(g)   The total amount including legal increases (if any) in the contract amount (excluding any price differences and VAT, and with tender discount if any) shall be written.
(h)   The date of temporary acceptance/ dissolution of the work shall be written.
(i)   The amount of progress payment paid to the contractor of work or accrued during the term of office of the related person (excluding any price difference and VAT, but including any tender discount) and the ratio of this amount to the first contract amount shall be written.
(j)    The total amount of progress payment paid or accrued during the term of office of the related person (excluding any price difference and VAT, but including any tender discount) in the contract prices shall be written.
(k)   The name, surname or trade title of the contractor shall be written and signed in respect of those that undertook management on behalf of the contractor of works contracted with the public sector.
(*)   It shall be signed by the authorized body (with official seal, stamp, name and title) concluding the contract.













Standard Form – KIK036.0/Y
Work Experience Certificate (Work Management)
#64
REGULATION ON IMPLEMENTATION OF WORKS PROCUREMENTS


CHAPTER ONE
General Provisions

SECTION ONE
Implementation Principles

Purpose and Scope
Article 1- This Regulation hereby has been prepared to govern the principles and procedures to be applied by the contracting entities within the scope of Public Procurement Law #4734 dd. 04/01/2002 in the works procurements.

This Regulation enacted in relation to the implementation of Public Procurement Law #4734 and Public Procurement Contracts Law #4735 is integral with annexes hereto.

Legal Basis
Article 2- This Regulation has been prepared on the basis of Article 53 of Public Procurement Law #4734.

Definitions
Article 3- The following definitions shall be applicable in the implementation of this Regulation other than the ones set forth in Article 4 of Law #4734:

Threshold Value: (Amended: 08/06/2004 – 25486 Official Gazette/ Art. 1) Refers to the monetary limites defined under Article 8 of Law #4734 and updated under Article 67 of the same Law for use in the application of the provisions concerning the procurement proclamation periods and rules as well as the participation of domestic tenderers solely in works procurements or application of price advantage in favor of the domestic tenderers in the procurements;

Similar Work: Refers to the works that are similar in respect of quality and size with the works or portion of works, which constitute the subject matter of procurement, and that require the same or similar construction procedures and techniques, and that have similar properties with respect to plants, machinery, tools, other equipment, financial power, expertise and organization;

Work Experience Certificate: Refers to the work completion certificate, work status certificate, work supervision certificate and work management certificate that provide the professional experience in the works or similar works, which constitute the subject matter of the procurement, and that are issued, given and evaluated according to the principles and procedures set forth in this Regulation;

   Estimated Cost: Refers to the anticipated cost of the works, which constitute the subject matter of procurement, and which is calculated with any kind of price inquiry before holding the procurement exclusive of value added tax and which is indicated in an estimation schedule with the bases thereto, and which are not specified in the procurement and prequalification proclamations, and which are not released to the tenderers or other persons that do not have an official relation with the procurement process.

Basic Principles
Article 4- (Amended: 08/06/2004 – 25486 Official Gazette / Art. 2) The Contracting Entities shall be obliged to ensure transparency, competition, equal treatment, reliability, confidentiality, supervision by public opinion, and that the needs are met at appropriate conditions and in a timely manner, and that the resources are efficiently used.

The goods procurements, works procurements and works procurements may not be held as long as there is not an acceptable natural relation among them.

(Amended: 08/06/2004 – 25486 Official Gazette / Art. 2) The works procurements cannot be divided in parts so as not to be less than the threshold values or the monetary limits or in order not to implement the other provisions set forth in this Regulation.

(Amended: 08/06/2004 – 25486 Official Gazette / Art. 2) Open procedure and restricted procedure constitute basic procedures in the procurements. Negotiated procedure and direct procurement are only possible in the specific cases provided in the Law.

The procurement shall not be opened for any work without any appropriation.

EIA approval certificate is a must for holding the procurement of works requiring the Environmental Impact Assessment (EIA) report as per the pertinent legislation. However, EIA report shall not be required for the works that shall be tendered urgently owing to the natural disasters.

The matters that the contracting entities have to comply with in the works procurements
Article 5- In the works procurements, the contracting entities have to comply with the following matters before holding the procurement:

a) In order to be able to hold the procurement covering more than one year, it is compulsory to make programming to ensure the availability of appropriations in the budgets in different years according to the duration of work. The appropriation stipulated for the first year may not be less than 10% of the project cost, and the parts of appropriations programmed for the subsequent years may not be reduced in the subsequent years.

b) It is essential that the procurement is held in a timely manner, and that the procurement is concluded within the first nine months of the year in the works that cover more than one year and that have the nature of investment (except for the ones to be held owing to the natural disasters) in view of the period when the estimated appropriations can be used.

c) The procurement cannot be held before acquiring the land, and completing the ownership, expropriation and public improvements, where necessary, and drawing up the implementation projects. It is compulsory to hold the procurement by receiving the turn key lump sum tenders in the works with an implementation project. However, the procurement may be held with the preliminary or final design in the works without any sufficient period to draw up the implementation project, and with the final design in the works, for which the implementation project cannot be drawn up since the land and ground surveys are required during the performance of work except for the building works. In these works, the procurement can be held by receiving turn key lump sum tenders for the portions of work, for which the implementation project is performed, and unit price tenders for each item of works in respect of the portions, for which the implementation project cannot be drawn up. The repair works to be performed according to the survey, restoration and restitution projects may be tendered by receiving unit price tenders for each item of works. The requirements of acquisition of land, ownership and expropriation shall not be applicable for the dam, large irrigation, oil and natural gas pipeline projects.

d) In respect of the mass houses projects under the Mass Houses Law #2985, the procurement may be held without applying the provisions set forth in paragraphs five and six of Law #4734 and paragraphs (a) and (b) of Article 62 and irrespective of the requirements of expropriation, ownership, acquisition of land, public improvements and implementation project set forth in paragraph (c) of Article 62. However, in cases where the EIA report is compulsory, such report has to be received before concluding the contract.

e) (Amended: 08/06/2004 – 25486 Official Gazette / Art. 3) Unless approved by the Board, the annual total amount of the expenditures to be made within the monetary limits set forth in paragraph (d) of Article 22 of Law #4734 cannot exceed 10% of the appropriations allocated by the contracting entities to the budget for works. The contracting entities shall take into account the amount of appropriations allocated for the works to be carried out under this Law and allocated in the annual budgets in the works that will be carried out within the said monetary limits.

f) (Annex: 08/06/2004 – 25486 Official Gazette / Art. 3) The proclamation or solicitation cannot be made before preparation of the tender document in the procurements with open and negotiated procedure, and of the prequalification and tender document in the procurements with restricted procedure.

Domestic Tenderer
   Article 6- Domestic tenderer refers to the physical bodies that are the citizens of the Republic of Turkey and the legal entity incorporated under the laws of the Republic of Turkey.

   In order to be assumed as domestic tenderers, the physical bodies shall submit the copy of identity card evidencing the citizenship to the Republic of Turkey, and the legal entity shall submit the documents evidencing incorporation under the laws of the Republic of Turkey.

The following documents shall be provided to evidence incorporation of the tenderers having the capacity of legal entity under the laws of the Republic of Turkey:
a) Trade registers gazette or the certificate issued by the associated trade registers office indicating the principal office of the company in respect of the companies;
b) Certificate of receipt issued by the relevant governmental office in respect of the Associations;
c) Copy of the register extract or the Official Gazette released to evidence registration to the central register kept by the General Directorate of Foundations in respect of Foundations;
d) Certificate issued by the relevant ministry in respect of the Cooperatives;
e) Certificate issued by the relevant authorities in respect of other legal entity.

(Amended: 08/06/2004 – 25486 Official Gazette/ Art. 4) These requirements shall be applicable for each partner comprising the joint venture separately.

(Amended: 08/06/2004 – 25486 Official Gazette/ Art. 4) The Contracting Entities shall be obliged to require the documents listed above from the candidates or tenderers in relation to being a domestic tenderer in the procurements, in which it is specified that only the domestic tenderers can participate and the price advantage shall be applied in favor of the domestic tenderers.
SECTION TWO
Estimated Cost

   Estimated Cost
Article 7- The Contracting Entity determines the estimated cost of the works, which constitute the subject matter of the procurement, according to the principles and procedures set forth in this Regulation before holding the procurement.

The Contracting Entities shall ascertain whether the estimated cost of the works, which constitutes the subject matter of the procurement, is below the threshold value of the procurement or not.

The estimated cost shall be determined on actual basis through detailed amount and price inquiry as per the principles and procedures set forth in this Regulation and indicated in an estimation schedule with the bases thereto.

The estimated cost ascertained by the contracting entities before the procurement shall not be announced and released to the tenderers or other persons that do not have an official relation with the procurement process.

Determination of amounts taken as basis for the calculation of estimated cost
Article 8- Firstly, the following efforts have to be made to determine the amounts taken as basis for the calculation of estimated cost.

a) Land and ground survey: It is compulsory to conduct the land and ground surveys in the works to be tendered by receiving turn key lump sum tenders over the implementation project; and to conduct the possible land and ground surveys in the works to be tendered by receiving unit price tenders over the preliminary and/or final design.

b) Project requirement: It is required to draw up the implementation project for the building works, and the implementation project for the portions of other works, for which the implementation project can be drawn up, and the final design for the portions, for which the implementation project cannot be drawn up, and the preliminary and/or final design for the works, for which there is not sufficient time to draw up the implementation project due to the natural disasters, and calculate the estimated cost on the basis of the said projects.

c) Drawing up location lists: The location lists shall be drawn up to indicate the names and locations of the items within the scope of works and constituting basis for drawing up the estimated costs on the basis of the preliminary and final designs and implementation projects.

d) Drawing up bills of quantities: The bills of quantities shall be drawn up in the forms of work items and/or work groups for the works that shall be procured by receiving the turn key lump sum tenders, and in the forms of work items for the works that shall be procured by receiving the unit price tenders in order to determine in which portion and what quantity of works shall be performed according to the dimensions and tariffs in the projects and location lists concerning the works, which constitute the subject matter of procurement.

e) Repair works, for which the implementation project cannot drawn up: In respect of the repair works, for which it is impossible to draw up the implementation projects, the estimated cost shall be calculated according to the location lists and bills of quantities issues on the basis of the surveys conducted.

f) Drawing up unit price and construction tariffs: In respect of works to be procured by receiving unit price tenders on the basis of the preliminary and/or final designs, the contracting entities shall draw up unit price tariffs that describe the name of item, construction requirements, type of measure, unit, the factors inclusive and exclusive of the unit price technically without causing any dispute.

In respect of the turn key lump sum works, the technical descriptions and specifications of the construction items or the work groups shall be defined on the basis of the implementation projects and location lists.

Determining prices and market values taken as basis for calculation of estimated cost
Article 9- The estimated cost for the works, which constitute the subject matter of procurement, shall be determined using one or more of the following items and making the other necessary inquiries:
a) Estimates costs, market values and unit prices suitable for the nature of works as determined by the public authorities;
b) Prices determined by the relevant chambers of profession, universities or similar organizations;
c) Construction costs, prices and values quoted by the persons and entities acting as contractors or subcontractors and that are experienced in their respective fields;
d) Determination of prices by the contracting entity based upon the market inquiry.

In cases where the construction estimated costs, unit prices, market values and the price analyses of the public authorities are not in consistent with the nature of the works or items to be performed, and do not reflect the technological stage and/or actual market values concerning the construction technique of works, the said prices and analyses shall not be taken as basis, but the real cost analyses and determinations to be made by the contracting entity shall be applied.

In price determinations based upon the market inquiry on the basis of the market values of the whole work, work group, item and material, the appropriate prices shall be determined by receiving prices or proforma invoices from the manufacturers, producers, main distributors, wholesalers, authorized sellers and sellers of the works, constructions and/or materials and making the necessary comparisons. The matter whether the prices in hesitation are in consistent with the actual market values or not shall be clarified with the written market values to be obtained from the Chambers of Commerce and/or Industry.

The letter sent to the persons and organizations subject to inquiry during such market research shall contain the detailed specifications and standards of the work group, item or materials, for which the price shall be determined. The persons and organizations, from which the price is inquired, shall be applied by means of the letters meeting the same requirements, and the prices shall be inquired exclusive of Value Added Tax. The price quotations and proforma invoices that do not meet the requirements shall not be taken into account.

Calculation of estimated cost
Article 10- (Amended: 08/06/2004 – 25486 Official Gazette/ Art. 5) The amount found by multiplying the amounts of works for each item and/or work group with the prices determined as per Article 9 of Regulation and not containing the contractor's profit and general expenses shall be calculated exclusive of VAT and the estimated cost shall be calculated by adding the equivalent of the profits and general expenses not exceeding 25 % to the amount found in this way. The related estimation schedule (standard form KIK.001.1/Y) shall be submitted to the contracting officer with the certificate of approval annexed after signing by those that prepare such schedule. The estimated cost calculation schedule and the certificate of approval shall be stored in the procurement proceedings dossier.

Calculation of estimated cost in case the materials, tools, machinery, equipment etc. are supplied by the contracting entity
   Article 11- In the event that the materials, tools, machinery and equipment etc. are supplied by the contracting entity for the works procurements to be tendered or to be used as ancillary equipment, the estimated cost shall be determined exclusive of the prices of such equipment supplied by the contracting entity, and the list of materials shall be attached to the estimated cost schedule to be submitted to the contracting officer.

Assignment of consultancy service providers for determination of estimated cost
      Article 12- If the personnel employed by the contracting entity is not at sufficient qualification or number as per the laws, ordinances and regulations, the service for determination of the estimated cost may also be rendered through tendering the same to the consultancy service providers with the approval of the contracting officer.

   Use of estimated cost for the budgeting and updating same
Article 13- Since the procurements cannot be held for the works without any appropriation, the contracting entities shall determine the estimated cost for each work, which constitutes the subject matter of the procurement, while programming the budgets. The value added tax shall be added to the amount of estimated cost as per the pertinent legislation in determining the amount of appropriation.

In view of the fact that the estimated cost determined may not maintain its validity until the first proclamation date of the procurement as from the date of determination, such costs shall be updated by the contracting entities, where necessary, over the monthly Wholesale Prices Index  (Table 2: Index in line "General") released by the State Statistics Institute.


SECTION THREE
Determination of Applicable Procurement Procedure

Determination of applicable procurement procedure
Article 14- The applicable procurement procedure shall be determined by the contracting entity as per the provisions set forth in Articles 18 through 21 of Law #4734. During such determination, the priority is given to the open procedure. However, the restricted procedure or negotiated procedure can also be applied in the cases set forth in the Law in view of the criteria such as the type and nature of the works to be performed, and also the works requiring expertise and/or advanced technology, and the estimated cost and urgency.

Open procedure
Article 15- In the open procedure, all tenderers may submit tenders.

Restricted procedure
Article 16- The works procurements, in which the open procedure cannot be applied since the works to be performed require expertise and/or advanced technology, may be held through the restricted procedure by selecting the candidates that have the capacity to submit tenders and conducting an evaluation for prequalification.

Negotiated procedure
Article 17- The works procurements may be held through the negotiated procedure in the following cases:

a) If there is not any tender submitted as a result of procurement held through the open or restricted procedure;
b) If it is compulsory to hold the procurement urgently when instantaneous and unexpected cases or the events that cannot be anticipated by the contracting entity such as the natural disasters, epidemic diseases, deaths or loss of properties arise;
c) If it is compulsory to hold the procurement urgently when the special cases arise concerning the defense and security;
d) If the procurement requires research and development and is not subject to the serial production;
e) If the technical and financial properties of the services, which constitute the subject matter of the procurement, cannot be defined as clearly as required since the said services are exclusive and complicated.

SECTION FOUR
Tender and Prequalification Document

Content of Tender and Prequalification Document
Article 18- The tender document to be prepared by the contracting entities shall include the administrative specification and the draft contract containing the instructions to tenderers, and a technical specification covering the project of works and other necessary documents and information.

The prequalification document of the works procurements to be held through the restricted procedure shall contain the requirements for the candidates, prequalification criteria, and other necessary documents and information.

The tender document of the works procurements to be held through the negotiated procedure shall contain the evaluation criteria designated for determination of the qualification of the tenderers.
   
   (Annex: 08/06/2004 – 25486 Official Gazette / Article 6) The contents of the tender or prequalification document shall be formed according to the articles included in the standard administrative or standard prequalification specifications and defining the scope of the tender or prequalification documents.

(Annex: 08/06/2004 – 25486 Official Gazette / Article 6) In the documents comprising the tender or prequalification documents, the arrangements made by the contracting entities should be consistent with each other.

   Preparation of tender and prequalification document
Article 19- (Amended: 08/06/2004 – 25486 Official Gazette / Article 7) The contracting entity shall prepare the document necessary to procure the services needed on the basis of the standard tender document released by the Public Procurement Authority and approve each page. It is compulsory for the contracting entities to store this original copy to be used for preparation of the document to be submitted to the candidates or tenderers in the procurement proceedings dossier. Where necessary, the tender and/or prequalification document to be submitted to the candidates or tenderers may be transferred to the "compact disc (CD)" provided that necessary safety precautions are taken within the framework of the principles defined by the Public Procurement Authority.

The following documents attached to this Regulation hereby shall be taken as basis according to the procurement procedure determined in preparation of the tender document by the contracting entities;
a) Standard Forms (Annex: 1);
b) Standard Administrative Specification Applicable for the Works Procurements Through The Open Procedure (Annex: 2);
c) Standard Prequalification Specification Applicable for the Works Procurements Through The Restricted Procedure (Annex: 3);
d) Standard Administrative Specification Applicable for the Works Procurements Through The Restricted Procedure (Annex: 4);
e) Standard Administrative Specification Applicable for the Works Procurements Through The Negotiated Procedure (Annex: 5);
f) Standard Contract for Works Procurements (Turn Key Lump Sum Works) (Annex: 6);
g) Standard Contract for Works Procurements (Unit Price Works) (Annex: 7);
h) General Specification for Works (Annex: 8);
and other legislation enacted by the Public Procurement Authority.

The contracting entity shall finalize the tender document until the date of first proclamation in the cases where proclamation shall be made, and until the date of solicitation in the cases where the solicitation shall be made. In the works procurements to be held through the restricted procedure, the prequalification and tender document shall be prepared until the date of proclamation for prequalification.

It is compulsory to prepare the tender or prequalification document in Turkish. However, in the procurements that are open to the foreign tenderers, the document may be prepared in other languages besides Turkish. The document prepared in the foreign language may be handed over with the document prepared in Turkish to the candidate or tenderer that makes such a request. In this case, the Turkish text shall supersede in understanding and interpreting the document as well as the settlement of disputes that may arise between the contracting entity and candidates or tenderers.

Administrative Specifications
Article 20- The contracting entities shall prepare the administrative specification on the basis of the Standard Administrative Specification annexed to this Regulation hereby according to the procedure applicable in the works procurement. The matters that are left blank for filling and provided in the footnotes in the Standard Administrative Specifications shall be governed in a way that is not contrary to the provisions set forth in the Public Procurement Law #4734, Public Procurement Contracts Law #4735 and the other imperative legislation according to the nature of work and the procurement procedure.
Furthermore, the contracting entities may govern the matters in items that are not provided in the Standard Administrative Specifications and that are needed to be governed according to the nature of work in view of the requirements of services, which constitute the subject matter of the procurement, and in a way that is not contrary to the imperative provisions set forth in Laws #4734 and 4735 and the pertinent legislation as well as the regulations, communiqués and other regulating proceedings passed by the Public Procurement Authority, and add the same to the section "Miscellaneous" included in the Standard Administrative Specifications.

Prequalification Specifications
Article 21- The contracting entities shall prepare the prequalification specifications on the basis of "Standard Prequalification Specification Applicable for the Works Procurements Through the Restricted Procedure" annexed to this Regulation hereby in case of holding the procurements through the restricted procure. The matters that are left blank for filling and provided in the footnotes in the Standard Administrative Specifications shall be governed in a way that is not contrary to the provisions set forth in the Laws #4734 and #4735 and the other imperative legislation according to the nature of work.

   Furthermore, the contracting entities may govern the matters in items that are not provided in the "Standard Prequalification Specifications" and that are needed to be governed according to the nature of work in view of the requirements of works, which constitute the subject matter of the procurement, and in a way that is not contrary to the provisions set forth in Laws #4734 and 4735 and the pertinent legislation as well as the regulations, communiqués and other regulating proceedings passed by the Public Procurement Authority, and add the same to the section "Miscellaneous" included in the Standard Administrative Specifications.
   
Technical Specifications
Article 22- The technical specification indicating the technical details and requirements, and the project of the works to be performed shall be prepared and included in the tender document. It is essential that the technical criteria set forth in the technical specifications to be prepared by the contracting entities ensure productivity and functionality, and do not contain the matters hindering competition, but provide equal opportunity for all tenderers.

In the technical specifications, the arrangements shall be made to ensure compliance with the national and/or international technical standards, if any. These specifications shall include the technical properties and descriptions. A specific trademark, model, patent, origin, source or product may not be specified and properties and descriptions may not be indicated for a specific trademark or model. However, in cases where there are not the national and/or international technical standards or it is not possible to determine the technical properties, the trademark or model may be specified provided that the expression "or equivalent" is included.

It is essential that the technical specifications specifying any kind of properties of the works, which constitute the subject matter of the procurement, are prepared by the contracting entities. However, the technical specifications may be got prepared through the procurement in compliance with the provisions of Law #4734 provided that it is approved by the contracting officer that it is not possible for the contracting entities to prepare them owing to the nature of the works to be performed.

Contracts
Article 23- The contracting entities shall take the Standard Contract, which is suitable for the type of tender, as basis annexed to this Regulation in preparing the draft contract within the scope of the tender document in view of the type of works.

The matters that are left blank for filling and provided in the footnotes in the Standard Contract shall be governed in a way that is not contrary to the provisions set forth in the Laws #4734 and #4735 and the other imperative legislation according to the nature of works.

Furthermore, in cases where there are not provisions in the Standard Contracts, the arrangements may be made in items under section "Miscellaneous" in the Standard Contracts to be prepared by the contracting entity provided that they are not contrary to the imperative legal rules and the tender document.

SECTION FIVE
Taking Approval for Procurement,
Tender Commission and Procurement Proceedings Dossier

Taking Approval for Procurement
Article 24- The estimation schedule concerning the estimated cost issued by the contracting entities as well as the draft contract and other documents prepared in relation to the work to be procured shall be annexed to procurement approval certificate (standard form KIK001.0/Y) and this approval certificate shall be approved by the contracting officer.

After taking the approval for procurement by the contracting entities, the procurement register number shall be obtained from the Authority prior to the procurement proclamation or solicitation.

Formation of tender commission and principles of activity
Article 25- (Amended: 08/06/2004 – 25486 Official Gazette / Article 8) The contracting officer shall form the tender commission within three days at the latest following the date of first proclamation or solicitation as per Article 6 of Law #4734 to hold the procurement. The tender commission shall be formed with the primary members of minimum five persons of odd number including minimum four persons from the contracting entity's personnel provided that one of them shall be the chairman and two of them shall be experts of the work, which constitutes the subject matter of the procurement, and the financial officer in the general and added budget entities, and one personnel in charge of accountancy or financial affairs in the other entities in view of the fact the commission will convene with all members completely, and the reserve members with the same qualifications for substitution of such members by indicating their names. If there is not sufficient number and qualification of personnel at the contracting entity holding the procurement, the members may be taken to the commission from the contracting entities within the scope of this Law.

All evaluations in the procurement process shall be made by the tender commission without forming the commissions under other titles apart from the tender commission.

The tender commission shall convene with all members being present and the resolutions shall be taken with the majority of votes. The members of the commission may not act as absentee in the resolutions. The chairman and members of the commission are responsible for the votes and resolutions, and the members of commission that vote against a resolution shall be liable to write and sign the reasons thereof under the resolution of the commission. The resolutions taken and the minutes issued by the tender commission shall be signed by indicating the names, surnames and titles of the chairman and members of the commission.

Procurement proceedings dossier
Article 26- The contracting entity shall issue a proceedings dossier for each work to be tendered. This dossier shall contain all documents related to the procurement process such as the certificate of approval and the annexed estimated cost schedule, tender document, and the proclamation texts if made, the applications or tenders submitted by the candidates or tenderers and the notification and receipt documents concerning the notifications made to the candidates and tenderers, and the minutes and resolutions of the tender commission and the original copy of the receipt evidencing that the contribution fee of the Authority to be calculated by the contractor over such price if the contract price exceeds the amount set forth in sub-paragraph (1) of paragraph (j) of Article 53 of Law #4734 has been deposited to the bank account of the Public Procurement Authority.

Each copy of the procurement proceedings dossier shall be given to the members of the tender commission by the contracting entity within three days following the date of proclamation or solicitation in order to enable them to conduct the necessary investigation.


SECTION SIX
Rules for Proclamation, Matters Concerning the Tender and Prequalification Document

Proclamation of Procurement and Prequalification
Article 27- (Amended: 08/06/2004 – 25486 Official Gazette / Article 9) The procurement and prequalification proclamations concerning the works procurements shall be made according to the following principles by providing sufficient time to enable all tenderers to prepare their tenders:
a) In respect of the procurements, the estimated cost of which is equal to or exceeding the threshold values set forth in Article 8 of Law #4734;
1) The proclamations of procurements to be held through the open procedure shall be made at least forty days prior to the date of procurement;
2) The prequalification proclamations of procurements to be held through the restricted procure shall be made at least fourteen days prior to the date of final application;
3) The proclamations of procurements to be held through the negotiated procedure shall be made at least twenty five days prior to the date of procurement;
provided that they are published in the Public Procurement Bulletin at least once.
It is compulsory to send the letter of solicitation at least forty days before the date of procurement to the candidates that are found to be qualified as a result of the evaluation for prequalification in the procurements to be held through the restricted procedure.
b) In respect of the procurements, the estimated cost of which is below the threshold values set forth in Article 8 of Law #4734;
1) Those, the estimated cost of which is at the amount set forth in sub-paragraph (1) of paragraph (b) of Article 13 of Law #4734, shall be proclaimed in at least two of the newspapers published at the place of procurement and work at least seven days before the date of procurement;
2) Those, the estimated cost of which is at the amount set forth in sub-paragraph (2) of paragraph (b) of Article 13 of Law #4734, shall be proclaimed in the Public Procurement Bulletin and one newspaper published at the place of work at least fourteen days before the date of procurement;
3) Those, the estimated cost of which is at the amount set forth in sub-paragraph (3) of paragraph (b) of Article 13 of Law #4734, shall be proclaimed in the Public Procurement Bulletin and one newspaper published at the place of work at least twenty one days before the date of procurement;
provided that they are published at least once.
In the procurements to be held through the restricted procedure, and the estimated cost of which is below the threshold values given under Article 8 of Law #4734, it is compulsory to send the letter of invitation at least seven days before the date of final application of the prequalification proclamations, and in the procurements that are held in the other procedures except for the duration set forth in paragraph (b) and as a result of the evaluation for prequalification, it is compulsory to send the letter of invitation according the periods given under paragraph (b) prior to the date of procurement to the candidates that are found to be qualified.

The procurements meeting the qualities defined by the Authority shall also be announced in one of the newspapers with circulation throughout Turkey through the Press Announcement Authority.

If any newspaper is not published at the place of procurement or work, the proclamation shall be made through the letters affixed on the billboards in the buildings of the relevant contracting entity, government and municipality and the municipal means of publication at the place where any newspaper is not published within the same periods. These proceedings are evidenced through minutes.

The contracting entity may also proclaim the procurements through the international proclamations or other local newspapers published or means of press, information processing network or electronic communication (Internet) according to the importance and nature of the work in addition to the compulsory proclamations mentioned above. However, in case of international proclamation, twelve days shall be added to the minimum periods of proclamation mentioned above.

The date when the proclamation is published shall be taken as basis in calculation of the proclamation periods, and the date of procurement or the deadline date shall not be taken into account. Subject to the proclamation periods set forth in this article, it is compulsory to send the proclamation texts at sufficient period in advance to the places where the proclamation is intended to be made in view of the duration that may elapse until the actual proclamation.

If the date determined for the procurement is a holiday, the procurement shall be held at the same place and time on the next business day without necessity for a proclamation again and the tenders submitted until such time shall be accepted. The time of procurement shall be determined in view of the working hours. Even if the working hours change after the proclamation, the proclamation shall be held at the time proclaimed.

It is not compulsory to make proclamations for the procurements to be held through the negotiate procedure as per the cases set forth in paragraphs (b) and (c) of Article 21 of Law #4734. However, minimum three tenderers have to be invited to the procurement in this case (KIK004.1/Y).

Arrangement of proclamations for procurement and prequalification
Article 28- (Amended: 08/06/2004 – 25486 Official Gazette / Article 10) The proclamations for procurements shall be prepared in compliance with the standard procurement and prequalification proclamation forms drawn up according to the procurement procedure on the basis of the information included in the tender document (Standard Forms KIK002.0/Y, KIK003.0/Y and KIK004.0/Y).

   The arrangements to the information given in the proclamations for procurements and prequalification as well as the documents comprising the tender or prequalification documentation have to be in compliance with each other.

The matters not specified in the tender and prequalification document shall not be included in the proclamations.

Non-compliance of proclamation
Article 29- The proclamations that are not in compliance with the provisions set forth in Articles 27 and 28 of this Regulation hereby shall be invalid. In this case, the procurement or prequalification cannot be made unless the proclamation is renewed in compliance with such articles.

However, except for the failure to make the proclamation set forth in Article 27 of this Regulation or the failure to comply with the proclamation periods, if it is understood that the proclamations are not in compliance with the provisions set out under Article 28, the procurement or prequalification can be made by issuing a correction proclamation for the faulty matters within ten (10) days following the publication of the proclamations. In this case, it shall be ensured that the correction proclamation is published in the same format with the means of publication where the proclamation, which constitutes the subject matter of such correction, is published.

Review on and purchasing the tender and prequalification document
Article 30- (Amended: 08/06/2004 – 25486 Official Gazette / Article 11) The prequalification document and tender document, which are prepared and each page of which is approved by the contracting entity, can be reviewed free of charge at the address specified in the proclamation of the contracting entity by the candidates or tenderers. It is compulsory that the candidates or tenderers that intend to participate in prequalification or procurement purchase the copies of such document, each page of which is approved by the contracting entity (standard form KIK005.0/Y). However, the copies of the tender or prequalification document copied to the "compact disc (CD)" may be sold to the candidates and tenderers provided that the contracting entity takes the necessary security precautions within the framework of the principles defined by the Public Procurement Authority.

It is essential that the document is sold against the cost not exceeding the cost of printing and not hindering competition, and the right of selling such document is solely owned by the contracting entity. The minutes containing the documents and information for determining the cost of printing the document shall be issued and stored in the procurement proceedings dossier. The contracting entity may not claim any additional fee whatsoever under the title of donation, aid or other titles against selling the documents, and may not claim depositing money to the bodies such as foundations, funds, associations and unions except for the budget of the amount of tender document.

Amendment to and clarification in the tender and prequalification document
Article 31- It is essential that any amendment is not made to the tender and prequalification document after the procurement is held. If it compulsory to make such amendment, the reasons and requirements to this effect shall be ascertained through a minute and the previous proclamations shall be void, and the work shall be proclaimed again in the same manner. However, if the substantial or technical mistakes or defects are determined by the contracting entity or notified in writing by the tenderers or candidates to the extent to affect the preparation of tenders and applications, amendments can be made to the tender and/or prequalification document by issuing an addendum. The addendum concerning such amendments shall be submitted to all those that have purchased the tender or prequalification document via registered & prepaid mail in writing or delivered personally against signature so that they are informed of the same at least ten (10) days prior to the deadline date of submitting tenders or deadline date of application, and they shall be ensured to be informed at least ten (10) days prior to the deadline date of submitting tenders or deadline date of application for prequalification. If an additional duration is needed to prepare the tenders or applications owing to such amendment, the deadline date of submitting tenders or deadline date of application for prequalification may be extended for maximum twenty (20) days by virtue of an addendum only once. In case of issuing an addendum, the tenderers or candidates that have already submitted their tenders or made their applications shall be given the opportunity to withdraw their tenders or applications and submit their tenders or make their applications again.

In respect of the matters that are needed to be clarified in the tender or prequalification document during the application for prequalification or submitting tenders, the candidates or tenderers may request clarification in writing until twenty (20) days prior to the deadline date for application or submitting tenders. The requests for clarification after such date shall not be taken into consideration.

If such request for clarification is approved by the contracting entity, the clarification to be made by the contracting entity shall be submitted to all those that have purchased the tender or prequalification document until such date via registered & prepaid mail in writing or delivered personally against signature. Such written clarification by the contracting entity shall be made so that all candidates or tenderers are informed of the same at least ten (10) days prior to the deadline date of submitting tenders or deadline date of application. The clarification shall contain the description of the problem and the detailed answers of the contracting entity, however, the identity of the candidate or tenderer that requests for clarification shall not be released. The written clarifications shall be given together with the tender and prequalification document to those that purchase the tender or prequalification document after such clarification.

Cancellation of procurement prior to the time of procurement
Article 32- In cases deemed necessary by the contracting entity or in cases where the matters that hinder holding the procurement in the documents comprising the tender document and that are not possible to be corrected, the procurement may be cancelled prior to the time of procurement.

In this case, cancellation of the procurement shall be immediately notified to the tenderers by indicating the reason of such cancellation. Cancellation of the procurement shall be notified separately to those that have already submitted tenders until such stage. If the procurement is cancelled, all tenders submitted shall be deemed rejected and such tenders shall be returned to the tenderers without opening the same. Any right may not be claimed against the contracting entity on the grounds of cancellation of the procurement.

In the event of cancellation of the procurement, the reasons for such cancellation shall be reviewed so that the procurement may be held again.


CHAPTER TWO
Qualification for Participation in Procurement

SECTION ONE
General Provisions

Principles for determination of qualification
Article 33- Any information, certificate, document and evaluation criteria required by the contracting entities in order the evaluate the economic and financial as well as professional and technical qualifications of the tenderers may not be determined to result in hindering the competition.

(Amended: 08/06/2004 – 25486 Official Gazette / Article 12) It is essential that those required for evaluation of qualification among the information and/or documents set forth under this Regulation hereby and the qualification criteria required in these documents are mentioned in the tender or prequalification document and the solicitation or the solicitation documents concerning the tender or prequalification according to the nature of the works, which constitute the subject matter of the procurement.

   (Amended: 08/06/2004 – 25486 Official Gazette / Article 12) The joint venture being qualified shall not be construed as each of the partner or members being qualified separately, and if the joint venture being qualified as a result of evaluation for prequalification disintegrates prior to the procurement, the letter of invitation shall be deemed invalid.
   
   Documents Required
   Article 34- The documents required for evaluation of economic and financial as well as professional and technical qualification of the tenderer under this Regulation:

a) In respect of the works procurements, the estimated cost of which is below the threshold value stipulated under paragraph (c) of Article 8 of Law #4734;

1) The documents obtained from the banks concerning the financial status of the tenderer;
2) The documents evidencing that the tenderer continues his professional activities and is authorized to submit tenders;
3) The documents indicating the experience of the tenderer in the works, which constitute the subject matter of the procurement, or similar works;
are compulsory to be required by the contracting entities.

   However, in respect of the works procurements, the estimated cost of which is below the upper limit stipulated for the works procurements set forth in sub-paragraph 2 of paragraph (b) of Article 13 of Law #4734 though below the threshold value set forth under paragraph (c) of Article 8 of Law #4734, only the documents evidencing that the tenderer is acting as registered to the associated chamber as per the pertinent legislation and is legally authorized to submit tenders shall be required. The contracting entity may require the other documents set forth in this Regulation in view of the nature of the work.

(b) In respect of the procurements of works, the estimated cost of which is equal to or exceeding the threshold value stipulated under paragraph (c) of Article 8 of Law #4734;
1) The documents concerning the financial status of the tenderer as obtained by banks;
2) The balance sheet or parts of the balance sheet deemed necessary and which are compulsory to be released as per the pertinent legislation, or if not any, the equivalent certificates;
3) (Amended: 08/06/2004 – 25486 Official Gazette / Article 13) The documents indicating the business volume and total turnover of the tenderer as well as the quantity of works  ongoing and completed in relation to the work, which is the subject matter of the procurement;
4) The documents evidencing that the tenderer continues his professional activities and is authorized to submit tenders;
5) The documents indicating the experience of the tenderer in the works, which constitute the subject matter of the procurement, or similar works.

   Besides the documents listed hereinabove, it shall be determined by the related contracting entity on which of the other documents set forth in Article 10 of Law #4734 shall be required and used in evaluation of qualification in compliance with the nature of the work, which constitutes the subject matter of the procurement, and within the framework of the principles provided under this Regulation.

   (Annex: 08/06/2004 – 25486 Official Gazette / Article 13) Furthermore, the contracting entities shall require from the tenders to attach the amounts concerning the items and/or work groups comprising the tender price and the related unit prices and the analyses suitable for the construction requirements defined by the contracting entity concerning these prices and the estimation schedule indicating the tender price in respect of the turn key lump sum works, and the analyses suitable for the construction requirements defined by the contracting entity concerning the prices proposed for evaluation of the abnormally low tenders and implementation of the contract.

Way of Submitting Documents
Article 35- (Amended: 08/06/2004 – 25486 Official Gazette / Article 14) The contracting entities shall require the originals or the copies duly certified by the notaries in implementation of this Regulation. The candidates or tenderers may also attach the copies of the documents affixed with "the original seen by the contracting entity" or any expression with the similar meaning and the originals returned to them by the contracting entity prior to the prequalification or procurement in lieu of the original documents to their tenders or applications. Such applications of the candidates or tenderers have to be met by the authorized personnel of the contracting entity before the procurement.

The notarized documents have to bear an expression indicating that the documents are true copies, otherwise the ones certified pursuant to the photocopies and the ones bearing "it is the same with the one submitted to me" or any similar meaning shall not be deemed valid.

The originals of the notarized work experience certificates submitted within the scope of the tender shall be submitted to the contracting entity before concluding the contract by the tenderer that is awarded.

The documents obtained from the foreign countries and submitted by the domestic or foreign tenderers have to be issued according to the legislation of the respective country and approved by the Consulate of the Republic of Turkey in the country where it is issued or the Turkish Ministry of Foreign Affairs. However, the documents mentioned in the tender document and the official documents issued from the countries that are party to the Convention on Abolishing the Obligation to Certify Foreign Official Documents and included within the scope of Article 1 of this convention shall be exempted from the approval of the Consulate of the Republic of Turkey in the country where it is issued or the Turkish Ministry of Foreign Affairs provided that they bear the "Apostille" seal. Provided that there is an agreement or convention containing provisions that require certain proceedings in respect of certifying the signature, seal or stamp on the documents between the Republic of Turkey and any other state or states, the approval of documents issued from such countries shall be subject to the provisions of this agreement or convention. Provided that the Turkish translations of the documents are required by the contracting entities, translations of official documents issued abroad as well as the documents listed in the tender document by the contracting entity have to be approved by the Consulate of the Republic of Turkey or the Turkish Ministry of Foreign Affairs. Translations of documents that bear the seal of Apostille as well as the translations of documents that are not required to be approved by the Consulate of the Republic of Turkey or the Turkish Ministry of Foreign Affairs have to be rendered by the sworn translators and notarized.

The documents and translations thereof issued by the certification bodies accredited by the national accreditation bodies included in the International Accreditation Forum for Mutual Recognition Agreement shall be exempted from the approval by the Consulate of the Republic of Turkey in the country where it is issued or the Turkish Ministry of Foreign Affairs provided that it is confirmed with a letter obtained from the Turkish Accreditation Authority that such bodies have been duly accredited according to the international rules.

The contracting entities may communicate with the Chamber of Profession, which the tenderers acting abroad are registered in the trade registers, about the status of tenderers and the trade register (if the tenderer is a company, its incorporation and shareholders), and may assign the organizations specialized in this issue to conduct inquiry abroad for determination of the reliability of the tenderer.

The contracting entities shall evaluate the documents containing monetary values concerning the economic and financial as well as professional and technical qualification by converting such values to the currency taken as basis for evaluation of tenders over the foreign exchange buying rate published by the Central Bank of the Republic of Turkey on the date of first proclamation or invitation, and over the foreign exchange cross-rates in cases where the tenders may be submitted in foreign currencies.

The foreign tenderers shall submit the equivalent documents to the ones required in the tender document as per the legislation applicable in their respective countries. If there is not the equivalent of or it is not possible to issue the documents listed under sub-paragraphs (a), (b), (c), (d), (e) and (g) of the last paragraph of Article 10 of Law #4734 as per their respective legislation, they shall submit written declarations to this effect. However, this has to be confirmed by the mission offices in Turkey of the country of the nationality of the foreign tenderer, who is a physical body, or the country where the principal office of the foreign tenderer, who is a legal entity, or the mission offices of the Republic of Turkey in such countries.

SECTION TWO
Documents Concerning the Economic and Financial Qualification

Documents Obtained From the Banks
Article 36- The tenderers have to submit the documents obtained from the domestic or foreign banks showing their unused cash facility or unused guarantee letter facility in the banks at an amount to be determined by the tenderers, but not less than 10 % of the tender price (standard forms KIK030.0/Y and KIK030.0.1/Y).

(Amended: 08/06/2004 – 25486 Official Gazette / Article 15) Where necessary, these documents shall be confirmed from the general directorate and branch office of the related bank by the contracting entity. The confirmations via fax have to bear the signatures of at least two officials.

In case of joint ventures, these documents can be provided jointly irrespective of the shares of the partners.

Balance sheets or equivalent documents of tenderer
Article 37- In the procurements with an estimated cost equal to and exceeding the threshold value, the tenderer has to submit the end-of-year balance sheet for the year prior the year when the procurement is held or the parts of the balance sheet deemed necessary, otherwise the equivalent documents.

   In the procurements where the estimated cost is below the threshold value, the end-of-year balance sheet for the year prior the year when the procurement is held or the parts of the balance sheet deemed necessary, otherwise the equivalent documents may be required.

   In the cases where such documents are required;

   a) The current ratio showing whether the tenderer has the necessary liquidity and the power to cover debts in short term (one year) for providing the cash flow in certain periods (current assets / short term liabilities) must be minimum 0.50 (in the calculation, the contract progress costs shall be deducted from the current assets and the contract progress incomes shall be deducted from the short term liabilities);
   b) The equity ratio showing the extent of shareholders' equity within the assets (shareholders' equity / total assets) must be minimum 0.10 (in the calculation, the contract progress costs shall be deducted from the total assets);
   c) Ratio of short term bank liabilities to the shareholders' equity must be less than 0.75.

   The items indicated hereinabove are accepted as qualification criteria and all of these three criteria must be complied with at the same time. (Annex: 08/06/2004 – 25486 Official Gazette / Article 16) In the balance sheets submitted, it is compulsory to indicate the contract progress costs and the contract progress incomes.

   The tenderers who can not meet these requirements in the preceding year may submit their certificates for up to the last three years, and in this case, it shall be checked whether the minimum values are met based on the average of the last three years, for which the certificates are submitted.

   The balance sheets or the parts of the balance sheets that are deemed necessary must be issued pursuant to the relevant legislation and approved by the certified financial consultant or independent accountant & financial consultant or the tax office.

   The tenderers who do not present their balance sheets that are not compulsory to be issued or their parts may evidence their compliance with the criteria indicated hereinabove with certificates approved by the certified financial consultant or independent accountant & financial consultant.
   
   In case the tenderer is a joint venture, each of the tenderers has to submit the requested certificates separately and each of the partners must comply with the requirements indicated in paragraphs (a), (b) and (c).

Documents indicating the business volume of tenderer

   Article 38- (Amended: 17/02/2005 – 25730 Official Gazette / Article 1) In the procurements with an estimated cost equal to and exceeding the threshold value, the contracting entities shall require and the tenderers shall submit the income statement showing the total turnover of the tenderer for the last three years before the year, in which the procurement is held, and the progress payment reports and the similar documents showing the amount of work undertaken and completed by the tenderer in relation to the works constituting the subject matter of the procurement.

(Amended: 17/02/2005 – 25730 Official Gazette / Article 1) In the procurements with an estimated cost below the threshold value, the contracting entities may require the income statement showing the total turnover of the tenderer for the last three years before the year, in which the procurement is held, and the progress payment reports and the similar documents showing the amount of work undertaken and completed by the tenderer in relation to the works constituting the subject matter of the procurement. In this case, the tenderers have to submit either of such two documents.

In the calculation of the amount of works undergoing and completed in relation to the works, which constitute the subject matter of procurement, the total incomes obtained from the activities of the tenderer in the construction sector either within or out of the country shall be taken into consideration.

   In cases where such documents are required, the average of the last three years must not be less than 15% of the price to be proposed by the tenderer for total turnover and 12% of the price to be proposed by the tenderer for incomes from the works.

   (Amended: 17/02/2005 – 25730 Official Gazette / Article 1) The tenderer that complies with either of these criteria and that submits the document evidencing such compliance shall be satisfactory.

   The tenderers that do not meet these requirements within the last three years may submit the document up to the last six years; in this case, it shall be checked if the minimum values are met over the average of the years, for which the documents are submitted.
      
   The income table submitted and the documents showing the incomes relating to the amount of works undertaken and completed concerning the works, which constitute the subject matter of the procurement, have to be approved by the certified financial consultant, independent accountant & financial consultant or the tax office.

   (Amended: 17/02/2005 – 25730 Official Gazette / Article 1) In the assessment of the works undertaken by the tenderer, the condition of performing the work under a contract in the private or public sector shall be required.

(Amended: 17/02/2005 – 25730 Official Gazette / Article 1) The amount of the Works completed by the Tenderer in a joint venture shall be taken into consideration in proportion with his share in such joint venture.

   (Amended: 17/02/2005 – 25730 Official Gazette / Article 1) In respect of the joint ventures, the pilot partner and the other partners shall be liable to meet the minimum qualification criteria in proportion to their shares in such joint venture as the total turnover or annual income from works, which constitute the subject matter of the procurement. Each of the joint venture partners has to present either of the two documents submitted and meet the criteria stipulated for the document submitted in proportion to his share in the joint venture.
   
(Amended: 08/06/2004 – 25486
#65
Annex: 4
STANDARD CONTRACT FOR PROCUREMENTS OF CONSULTANCY SERVICES
Standard Contract for Unit Cost/ Lump Sum Procurements of Consultancy Services

Article 1 – Parties to the Contract
This Contract hereby has been executed by and between ................................................... (hereinafter referred to as "the Contracting Entity") on one part and ............................1 ................ (hereinafter referred to as "the Consultant") on the other part on the following terms and conditions.

Article 2 – Information about the Parties
2.1. Address of the
Contracting Entity   : ............................................................................................
Phone         : ............................................................................................
Fax         : ............................................................................................
E-mail (if any)   : ............................................................................................

2.2. Notification Address
of the Consultant   : ...........................................................................................2
Phone         : ............................................................................................
Fax         : ............................................................................................
E-mail (if any)   : ............................................................................................

Article 3 – Language of the Contract and Correspondence
The language of the Contract and annexes hereto as well as the communications is Turkish.3

Article 4 – Notifications
4.1. Both Parties hereby accept the addresses specified in Articles 2.1 and 2.2. as their notification addresses. Notifications to the last addresses informed shall be deemed to be sent to the respective Parties unless any change to the addresses is duly notified to the other Party.

4.2. The Parties may send notifications to the other Party by means of delivery personally, mail or mail courier, telex, fax or e-mail provided that the written notification is sent later within the stipulated duration.

Article 5 – Definitions
The following definitions shall be used within this contract other than the terms defined in Public Procurement Law No. 4734 and Public Procurement Contracts Law No. 4735 in implementing this Contract hereby:

"Work" shall refer to the Consultancy Services awarded to the Consultant and that is undertaken for performance within the scope of Contract including any kind of increases;

"Consultant" shall refer to the service provider that renders consultancy services;

"Contract Documents" shall refer to the contract and Tender Documents enclosed to the Contract;

"Workplace" shall refer to the places where the works are carried out and other places that are temporarily and continuously used during the term of the work;

"Control Organization (Control Office)" shall refer to a person or committee that is assigned within the body of the Contracting Entity to control and inspect the works or the physical or corporate body/ bodies that is/are assigned to perform such duties outside the body of the Contracting Entity;

"Consultant's Equipment" shall refer to all tools and all equipment of whatsoever nature that are required to complete and remedy the defects of the Consultancy Services;

"Examination and Acceptance Proceedings" shall refer to the proceedings that must be completed after the Consultancy Service or any Part or portion of the it indicated in the Contract are received by the Contracting Entity;

"Consultant's Attorney" shall refer to the person that is authorized by virtue of a power of attorney that is issued by a notary public to represent the Consultant with respect to the work under the Contract upon acceptance by the Contracting Entity;

"Third Person" shall refer to the person or persons other than the Contracting Entity, Control Organization and Consultant;

"Day" shall refer to the calendar day;

"Application Month" shall refer to the month when the works are carried out in compliance with the work schedule approved by the Contracting Entity;

"Year" shall refer to the calendar year;

"Subcontractor" shall refer to the physical or corporate body the acts on behalf of and under the control of the Consultant in order to carry out some part of the work under the Contract upon approval of the Contracting Entity;

"Partner" shall refer to each member of the joint venture if the Consultant is a joint venture;

"Party" shall refer to either Contracting Entity or Consultant according to circumstances, and the "parties" shall refer to both of them;

"Personnel" shall refer to the persons that are employed against wages by the Consultant or subcontractor, and that are assigned with the performance of the Consultancy Services or part of them;

"Expatriate Personnel" shall refer to the personnel that are not the citizens of Republic of Turkey;

"Key Personnel" shall refer to the personnel that the Consultant shall employ for rendering the services, and whose names, titles, job descriptions and qualifications shall be indicated in the technical tender;

"Services" shall refer to the works that will be carried out by the Consultant as per the Contract and that are defined in the Contract Documents in order to perform the work;

"Technical Document" shall refer to all projects, calculations, and similar technical data and document submitted to the Consultant by the Contracting Entity as well as the projects, similar technical data and documents submitted by the Consultant and approved by the Contracting Entity as per the Contract;

"Contract Amount" shall refer to the amount that is indicated in the contract over the currency applicable for payment and that will be paid to the contractor in return for completing the works mentioned in the contract as well as the increased works that may be required as per Article 24 of Law #4735 owing to the cases that are not anticipated, and if any, remedying the deficiencies and defects;

"Date of Commencement of Work" shall refer to the date when the Consultant receives the instruction to commence the work from the Contracting Entity, and the date when the workplace is handed over to the Consultant in respect of the works that require delivery of worksite;

"Completion Period" shall refer to the time interval that will be calculated as from the date of commencement of work and that is determined for completing the Works or any part thereof indicated in the Contract including the time extension graced by the Contracting Entity;

"Certificate of Acceptance" shall refer to the certificate that is issued after the works are completed and then inspected by the Acceptance Committee;

"Chapter" shall refer to the sections of work that are clearly specified in the contract as a part or portion;

"Currency Taken As Basis For Payment" shall refer to Turkish Lira;

"Authority" shall refer to the Public Procurement Authority;

"Board" shall refer to the Public Procurement Board;

.................................4

In cases where the scope and content of the terms defined in this article are on contrary to the scope or content of the terms used in the Public Procurement Law #4734 dated 04.01.2002 or the legislation enacted based upon this law, the scope or content of the terms used in the Public Procurement Law #4734 dated 04.01.2002 or the legislation enacted based upon this law shall be applicable.

Article 6- Description of Work
The work under the contract is ................................., and the technical specifications and other details of the Work are set forth in the documents that are enclosed to the contract and that constitute the Tender Documents (If the contractor is a joint venture in the form of a consortium, the part of work undertaken by each partner in the consortium shall be clearly written here).

Article 7 – Contract Type and Amount5
........................................................................................................................
........................................................................................................................

Article 8 – Annexes to the Contract
8.1. All documents included in the Tender Document shall be an annex to and an integral part of this Contract hereby, and shall bind the Contracting Entity and the Consultant. However, in the event that there is a conflict or discrepancy between the provisions of the Contract and provisions of the documents comprising the Tender Document, the provisions specified in the Tender Document shall be taken as basis.

8.2. The Tender Document is consist of the following documents and the order of priority within these documents is as follows:
1) Administrative Specification
2) Financial tender that is finalized as a result of negotiations, unit cost schedule in annex and technical tender
3) Draft Contract
4) Special technical specifications (if any)
5) General technical specifications (if any)
6) Clarifications (if any)
....................................
....................................6

8.3. Addenda of the documents listed above shall have the order of priority of the related documents.

Article 9 – Duration of the Contract7
Duration of the Contract shall be ............... days / months following the date of commencement to work.

Article 10 – Place of Work, Handover of Worksite and Work Commencement Date8
10.1. Place of work: ................................................................................................
10.2. Handover (if any) of worksite and work commencement date: .......................................

Article 11 – Taxes, Levies, Charges and Other Costs Concerning the Contract
.....................................................................................................................9

Article 12 – Provisions on the Performance Bond10
12.1. Performance Bond: The amount of performance bond concerning this work shall be .......................................... (in figures) and .............................. (in words); and the Consultant11 has furnished ....................................... (in figures) and ........................... (in words) as the performance bond.12

12.2. Additional Performance Bond: In the cases requiring the payment of price difference, deduction shall be made from the payments at the rate of 6% of the price difference payable or additional performance bond shall be received from the values accepted as guarantee. The additional performance bond that is calculated over the amount that will be paid as the price difference can also be covered by deducting from the progress payments.

12.3. Performance bond and additional performance bond provided by the Consultant shall be changeable with the values set forth in Article 34 of Law #4734.

12.4. Returning Performance Bond and Additional Performance Bond:  After the Contracting Entity determines that the work has been performed in accordance with the provisions of the Contract and Tender Document, and the Consultant does not have any outstanding debt to the Contracting Entity due to this work, the performance bond and the additional performance bond shall be returned to the Consultant after the certificate of no binding issued by the Social Security Institution is submitted to the Contracting Entity.13

12.5. In the event that outstanding debts of the Consultant to the Contracting Entity and social security institutions due to this work as well as the legal tax deductions made from prices and payments assumed as prices are not paid until the final acceptance date of the services, performance bonds and additional performance bonds shall be converted into cash and deducted against the incurred debts, and if any, the remaining amount shall be returned to the Consultant without any need for written protest and judgment by a court.

12.6. In the cases where it is not necessary to make deductions as per the provisions set forth above, the performance bonds shall be invalid and returned to the relevant bank or private financial institution because they are not demanded in spite of the written demand of the Contracting Entity within two years following the approval of the final account and acceptance protocol. Guarantees other than the letters of guarantee shall be registered as revenue for the Treasury.

Article 13 – Place and Terms of Payment14
13.1. The contract amount (including the amount for the increases owing to the increased works)15 shall be effected by ......................................16 according to the schedule and conditions set forth herein below:

13.2. Exchange Rate of Payments: ............................................................................17
13.3. Progress Payments and Terms of Payment18

13.3.1. ...............................................................................................................

13.3.2. After the supportive documents are submitted to the Contracting Entity, the Contracting Entity shall issue the progress payment reports and ensure that the necessary payment is effected to the Consultant within thirty (30) days at the latest. Only the payments concerning the part of the progress payment report that cannot be evidenced sufficiently with the necessary documents can be delayed. If any inconsistency arises between the actual payment and the expenditures that are authorized to be made, the Contracting Entity shall add this difference to any of the subsequent payments or deduct it from such payments.

13.3.3. If the contractor does not sign the report within one week after the progress payment report is issued, the Control Organization shall submit the progress payment report to the Contracting Entity and the report shall be retained without any proceeding at the Contracting Entity until it is signed by the Consultant. If the Consultant fails to sign the progress payment reports in a timely manner, he cannot make any claim and request owing to the delay in payment.

The temporary progress payment report that is drawn up and signed by both parties can be corrected by the competent authorities until the accrual proceedings. However, the former figures and letters should be crossed out legibly during such correction, and bear the signature of the officer that makes such correction. However, if there a great deal of corrections to the extent to require the issuance of new page, a separate page shall be drawn up and attached to the progress payment report provided that there is an explanation that correction has been made on the main page.

In the event of any claim, the temporary progress payment reports of the Consultant should indicate the counter-opinions and the justifications, and also the description of it in the petition that will be submitted to the Contracting Entity and a copy of which shall be attached to the progress payment report, and must be signed by writing the sentence, "according to the claim set forth in my petition dated ............. submitted to the Contracting Entity" or any other sentence with the same meaning. If the Consultant makes a claim against the corrections that can be made in the progress payment report by the competent authorities until the accrual after the progress payment report is signed, he shall be liable to notify such claim to the Contracting Entity by virtue of a petition within ten days at the latest as from the date of payment of the progress payment to him. If the consultant does not inform his claims in that way, he shall be presumed that he has accepted the progress payment as such in.

The amount that is to be added to the amount of each progress payment shall be included in the contract. The amount of previous progress payment shall be deducted from the amount that is calculated, and Value Added Tax (VAT) shall be added to such amount to be calculated. The withholdings set forth in the contract, and if any, the debts of the Consultant to the Contracting Entity as well as the penalties and the taxes that must be received statutorily shall be deducted. The Progress Payment Report shall accrue by the end of the period at the latest set forth in the contract as from the date of signing by the Consultant or his attorney, or if such period is not indicated, within thirty days. The payment shall be effected within thirty days as from such date.

13.4. Failure of Application by Consultant
If the Consultant fails to make application for progress payment, the Contracting Entity can issue the progress payment report within maximum three months unilaterally.

Article 14 – Terms and Amount of Advance Payment19
14.1. After the work commences and the work program is approved by the contracting entity, the advance payment shall be effected at the amount indicated above against the values that can be accepted as guarantee at the percentage of .......................20 of the contract amount for the expenses of equipment, plants, materials etc. necessary to execute the contract upon the written request of the Consultant. The delivered advance payment shall not be conveyed away to another one on no consideration.

14.2. The letter of guarantee to be provided by the consultant against such advance payment shall have the qualities acceptable to the Contracting Entity and comply with the procedures and the form included the tender document.

14.3. The Contractor has to indicate that such advance payment shall be utilized for the purpose indicated hereinabove as well as the quantity and amounts that such advance payment is to be allocated and the dates of payment, and that the provisions of advance payment shall be complied with in such written application to be submitted to the contracting entity.

14.4. The contractor shall submit the invoices and similar applicable documents evidencing that such advance payment has been utilized for the specified purposes to the contracting entity as soon as possible. The contracting entity shall at all times be entitled to deduct the advance payment or balance thereof from the next progress payment at once, and if this is not sufficient or there is not any progress payment, convert the letter of guarantee for advance payment into cash if the work program delays or the advance payment is not utilized properly or the work does not commence within a reasonable period of time.

14.5. The deduction of advance payment shall be made on the basis of the following principles written below21:

The percentage for deduction of advance payment is .......................22 more than the percentage of advance payment. The advance payment shall be deducted by applying the percentage for deduction of advance payment to the amount of each progress payment as from the date of advance payment. The letter of guarantee for advance payment shall be returned up to the amount deducted. The balance of advance payment, if any, shall be deducted from the last provisional progress payment irrespective of the percentage.

14.6. If the amount of progress payment is not sufficient, the difference shall be deducted by covering from the letter of guarantee for advance payment. If the work is dissolved, the Consultant has to pay the balance of advance payment within one month following the date of acceptance of such dissolution. If the payment is not affected after the end of such period, the balance of advance payment shall be deducted by covering from the letter of guarantee for advance payment.

14.7. If the work is dissolved, the Consultant has to pay the balance of advance payment within thirty days as from the date of dissolution. If the payment is not effected at the end of this period, the balance of advance payment shall be deducted by covering from the letter of guarantee for advance payment.

Article 15 – Price Difference
15.1. The consultant shall not be entitled to claim price difference due to any increase in taxes, levies, charges and similar financial liabilities until the complete performance of the contract or new financial liabilities both during the performance of contract and within the period of time extended.

15.2. ......................................................................................................................23.

15.3. Principles and procedures concerning the price difference under this contract shall not be amended after the contract is concluded.

Article 16 – Information about Subcontractors and Their Responsibilities
16.1. ..............................................................................................................24.

16.2. Those that should be disqualified from the procurement as per paragraph 2 of Article 10 of Public Procurement Law #4734, and those that cannot participate in the procurement as per Article 11, and those that are prohibited from participating in the procurement as per Article 58, and those from the foreign countries mentioned in the Decree of Council of Ministers that is to be taken as per sub-item 8 of item (b) of the contract, and those that are prohibited as per Article 26 of Public Procurement Contracts Law #4735.

16.3. The Consultant has to act as a diligent tradesman on selection of the subcontractor(s), and pay the due attention and take the due care. The Consultant is responsible for the acts and actions of the subcontractor as per Article 15 of Public Procurement Law #4734.

16.4. In order to get the whole or some of the works to be assigned to subcontractors carried out by other contractors due to force majeure during the performance of works, the Contracting Entity must be satisfactory with and accept such new subcontractor candidates, and the Consultant must conclude a contract before notary public with such new subcontractors before carrying out the work, and submit a copy of such contract to the Contracting Entity. The Contracting Entity shall indicate whether it accepts such new subcontractor or not within fifteen days, and it may request changing such subcontractor or getting the work carried out by Consultant himself.

The parts of work of the subcontractors can be changed during the performance of work provided that it is approved by the Contracting Entity.

16.5. If the Contracting Entity determines that the works carried out by the subcontractor do not comply with the terms and conditions set forth in the contract and annexes, it may request changing such subcontractor or getting the work carried out by Consultant himself.

Article 17 – Penalties and Deductions
The work under the contract shall be completed in a timely manner and delivered to the Contracting Entity availably. If the Consultant fails to fulfill such requirement in any manner, he shall pay penalty by ...................25 of the Contract Amount for each calendar day delayed.

....................................................................................................................26

Article 18 – Cases and Conditions for Extension of Duration
18.1. Force Majeure: The Contracting Entity shall accept the cases listed below as the events of force majeure provided that they are not caused by any defect attributable to the Consultant, and they have the nature to hinder the performance of the contract, and the consultant does not have sufficient power to eliminate this hindrance, and the consultant notifies the Contracting Entity in writing within 20 (twenty) days following the day of occurrence of the case of force majeure, and they are documented by the competent authorities:
   a) Natural disasters,
   b) Legal strikes,
   c) Epidemics,
   d) Announcements for partial or general mobilizations,
   e) Other similar cases to be determined by the Authority where necessary.

The Consultant shall apply to the Contracting Entity with a letter indicating the details and consequences of events and how long the duration of work has to be extended, and if it is not possible to determine the period to be extended, the reasons thereof within twenty days following the date of emergence of the reasons requiring the time extension, and immediately notify the time extension requested with a separate letter after this case is clarified.

Applications not made in time shall not be taken into consideration and the Consultant cannot request for time extension after the expiry of the application period. The applications during the effectiveness of force majeure shall be taken into account as from the date of emergence of the force majeure.

18.2. Reasons Attributable to the Contracting Entity: In the event that the Contracting Entity does not fulfill the contractual obligations (delay in handing over the worksite and approval of the projects and work program, delay in permissions, licenses and approvals and lack of appropriations etc.) within the stipulated duration without any default of the contractor as specified in the contract and General Specification, and any delay occurs with reasons not caused by the contractor, and the work is not completed in time, the situation shall be reviewed by the Contracting Entity upon request by the contractor provided that this hinders the performance of the contract and the contractor does not have sufficient power to eliminate the hindrance, and the Contracting Entity may extend the time for a part of or whole work according to the nature of the work.

18.3. ...............................................................................................................27

Article 19- Control Organization and Authorities
The Control Organization appointed by the Contracting Entity shall inspect whether the work is carried in compliance with the standards (quality and specifications) set forth in the contract and annexes hereto. The Control Organization shall keep the records for the works carried out and report to the Contracting Entity about progress of the works.

Article 20- Records and Minutes for Performance of Work
......................................................................................................................28

Article 21- Work Program
21.1. The Consultant shall draw up a detailed Work Program in the form stipulated by the Contracting Entity for the Consultancy Services undertaken within ............ calendar days from the date of commencement to work and submit to the Contracting Entity for approval. If the Consultant fails to draw up and submit the work program to the Contracting Entity for approval, the Contracting Entity shall draw up the work program discretionally.

The order and dates of submittal to the Contracting Entity of the projects, reports, technical documents etc. concerning the services must be indicated in the Work Programs.

21.2. The Consultant has to duly comply with the work program approved by the Contracting Entity. However, the work program can be changed upon approval of the Contracting Entity under compulsory cases.

Article 22- Revised Program
If there is a time extension approved by the Contracting Entity in relation to the work or the Control Organization is of the opinion that the program approved for the actual progress of works has not been complied with, the Consultant shall draw up a revised program and submit to the Contracting Entity within ten days to ensure that the works are completed within the Period of Completion upon the request of Contracting Entity.

Article 23- Continuation of Duties and Responsibilities of Consultant
That the programs mentioned above are submitted to the Contracting Entity, and that the approval of the Contracting Entity is taken or that the general clarifications mentioned hereinabove are given shall not release the Consultant from the duties or responsibilities undertaken as per the Contract.

Article 24- Early Completion of Work
If the work is completed earlier than the period set forth in the contract, the Contracting Entity shall complete the acceptance proceedings in compliance with the procedures set forth in Article 42 without waiting for the date of completion laid down in the contract.

Article 25 – Intellectual and Industrial Property Rights
......................................................................................................................29

These rights shall be exclusively belong to the Contracting Entity provided that the imperative provisions of the legislation in force is reserved, and the scope and content of the product are not corrupted and the product is not used in a way to deteriorate the image and prestige of the owner of product.

In the event that any right and/or interest subject to intellectual and/or industrial property under protection as per the provisions of the relevant legislation is violated when or since the Consultant is fulfilling the obligations, any administrative, legal, penal and financial liability to this effect shall be on account of the Consultant. The Consultant shall not be entitled to make any claim from the Contracting Entity in this matter. If the Contracting Entity faces any legal sanction in spite of this, it shall recourse to the Consultant upon the written request of the Contracting Entity provided that its other rights are reserved.

The Consultant shall submit the deeds of assignment and/or letters of consent about the rights on the intellectual and/or industrial property rights or the rights on pieces that arise as a result of services according to the demands of the Contracting Entity.

Article 26- General Obligations of Consultant
The Consultant shall take maximum care for the generally accepted techniques and practices when fulfilling the obligations under the contract and rendering the Services, and he shall work efficiently, and act according to the economic principles, and use reliable and efficient materials, equipment, machinery and methods with sound management and advanced technology. He shall act as the reliable Consultants for the Contracting Entity in every matter concerning the Services under the Contract and he shall support and protect the legal interests of the Contracting Entity in the relations with the subcontractors and third persons.

Article 27- Compliance With Legislation
The Consultant shall comply with all national legislations in performing and completing the works, and remedying the defects that may arise in Works, including all related notices and payments, and he also comply with the bylaws and regulations of the public organizations whose properties or rights are or can be affected from the Works in any manner whatsoever, and the Consultant shall indemnify the Contracting Entity against all penalties and liabilities that it may incur owing to the breach of such provisions.

Article 28- Providing Opportunities for Other Consultants and Contractors
The Contractor shall, according to the requirements of the Contracting Entity, provide all reasonable opportunities for,
a) all other Consultants and contractors, and their personnel employed by the Contracting Entity,
b) the personnel of Contracting Entity,
c) other persons and their personnel duly assigned for any work that is not included in the contract or assigned by the Contracting Entity under a contract in connection with the works under the contract or in order to help these works within or in the proximity of the workplace.

Article 29- Prohibition of Consultant From Having Interests Through Commissions, Discounts and Other Means
29.1. The amount payable to the Consultant is the exclusive payment to be effected to the Consultant in relation to the Contract or Services, and the Consultant shall not act in a way that will result in interests for him in fulfilling the duties and obligations in connection with or under this Contract, and the related commissions and discounts shall only be applied in favor of procurement and the Consultant shall not have any additional interest or profit from it, and take all possible measures to prevent the subcontractor's personnel and representatives to have additional profits in this manner.

29.2. In the event that the Consultant is liable for making recommendations to the Contracting Entity about the procurement of goods, works or services as a part of these services, the Consultant shall comply with the procurement procedures that the Contracting Entity has to comply with, and always fulfill such responsibilities in a way to protect the interests of the Contracting Entity. Any kind of commission or discount that the Consultant may get while performing and fulfilling the procurement works and related duties shall be registered as revenue for the Contracting Entity.

Article 30- Prohibition to Engage With Conflicting Activities
The Consultant, Consultant's Personnel, subcontractor and their personnel cannot enter into any commercial or professional activity that may cause conflict of interests with the Services awarded to them under the Contract directly or indirectly.

Article 31- Confidentiality
The Consultant and subcontractors and their Personnel cannot disclose any information about this Contract and the information about the commercial activities and transactions of the Contracting Entity without written consent of the Contracting Entity both during and after the term of this Contract provided that the Judgments of Turkish Judiciary Authorities are reserved.

Article 32- Protection Measures and Insurance
32.1. The Consultant has to take any kind of safety measure t prevent the occurrence of accidents, damages and losses during the term of work. The Consultant shall be liable for indemnifying the damages and losses that may arise owing to the failure to take the sufficient safety measures. All expenses concerning the safety measures both required by the Contracting Entity and taken by the Consultant at his disposal in these matters shall be on account of the Consultant.

The Consultant has to take all necessary measures in order to prevent the occurrence of accidents, damages and losses, and comply with instructions given by the Control Organization to decrease the possibilities of accidents, damages and losses.

32.2. The Consultant is obliged to insure any kind of tools, materials, projects, reports and documents etc. as well as the completed parts of the services from the commencement of works under the contract until the acceptance against the earthquakes, floods, landslides, storms, fires, thefts, accidents and similar dangers according to their properties and nature.

......................................................................................................................30

It is compulsory to insure the assets over their complete values, and the Contracting Entity shall have the capacity of employer, and the Consultant shall have the capacity of undertaker, and if any, the subcontractors shall be indicated on the policies issue.

All insurance limits shall be updated on the anniversary of the date of commencement of work.

32.3. The Consultant has to submit to the Contracting Entity the policies and evidences of payment concerning the said insurances required by the Contracting Entities before the work actually commences. Advance payment and progress payment shall not be paid unless the insurances are completed.

32.4. Professional Liability Insurance31

Article 33- Reporting Liability
The Consultant shall draw up and submit to the Contracting Entity the projects, reports and similar documents indicated in the Technical Specification in the form, number and period indicated in the Technical Specification again.

Article 34- Equipment and Materials Supplied by Contracting Entity
Both the materials and equipment supplied to the Consultant by the Contracting Entity for rendering the services under the contractor and purchased by the Consultant through the financing provided by the Contracting Entity shall be the property of the Contracting Entity, and recorded accordingly. After this Contract terminates or is annulled, the Consultant shall submit an inventory of the said materials and equipment to the Contracting Entity, and deliver such materials and equipment to the Contracting Entity according to the instructions of the Contracting Entity. The Consultant shall insure such materials and equipment as long as he possesses such materials and equipment, and the insurance costs shall be covered by the Consultant.

Article 35- Personnel Description32
........................................................................................................................

Article 36- Approval of Personnel
The Key Personnel whose names and titles are set forth in Article 36 have been approved by the Contracting Entity. The Consultant shall submit the CVs to the Contracting Entity for review and approval before the said personnel start working in relation to the key personnel that are intended to be employed for rendering the consultancy services. If the Contracting Entity does not make any written objection within twenty one (21) calendar days from the date of receipt of the CVs of such personnel with the reasons thereof, it shall be deemed that the said key personnel have been approved by the Contracting Entity.

Article 37- Dismissal and/or Substitution of Personnel
a) The key personnel shall not be substituted unless by virtue of the written consent of the Contracting Entity. If it is required to substitute personnel owing to any reason that is out of the reasonable control of the Consultant, the Consultant shall assign the personnel with the same or superior qualifications instead of such personnel.

b) If the Contracting Entity determines that the personnel have seriously misused their duties and there is a civil investigation with the claim an offense that will prevent the duly fulfillment of duties undertaken or without damaging the confidence of the Contracting Entity or it has sufficient reasons for not being satisfied with the performance of personnel, the Consultant shall assign the personnel with the same or superior qualifications instead of such personnel acceptable to the Contracting Entity upon the notice of the Contracting Entity to this effect with the reasons thereof.

The wages payable to the personnel that will be assigned instead of the personnel substituted as per paragraphs (a) and (b) hereinabove shall be subject to approval by the Contracting Entity. Unless otherwise agreed by the Contracting Entity;

All traveling costs and other expenses concerning the substitution and/or dismissal of the personnel shall be borne by the Consultant.

The wage payable to the new personnel shall not exceed the wage paid to the personnel that are substituted or dismissed.

Article 38- Responsible Manager
The Consultant shall ensure that a Resident Responsible Manager acts as responsible for the performance of such services as acceptable to the Contracting Entity during the overall term of rendering services.

Article 39- Aids and Facilities
The Contracting Entity shall provide the necessary aids and facilities for the Consultant where necessary in relation to the following matters:
Obtaining the necessary working permits for the consultant, subcontractor and personnel, and other necessary documents to ensure that they render the Services;
Obtaining the entry/ exit visas to/from Turkey, residence permits and other permissions necessary to enable them to live in the Republic of Turkey in respect of the Expatriate Personnel and the persons approved among those that they are liable to look after;
Completing the customs proceedings of the materials required for services as well as the goods of Expatriate Personnel and the persons approved among those that they are liable to look after;
Providing the facility for the Consultant, subcontractor and their personnel for bringing the foreign exchange at reasonable amount for rendering the services and the personal expenditures of themselves and the ones that they are liable to look after, and withdraw the money earned by the personnel during the performance of services;
.....................................................................................................................33

Article 40- Handover of Worksite
The Contracting Entity warrants that the Consultant can access to any place and site necessary for the works free of charge and without any restriction. The Contracting Entity shall be responsible for any kind of loss and damage that may occur to these lands and the immovable assets located on these lands as a result of the fact that the Consultant enters into such places and sites, and the Contracting Entity shall indemnify the Consultant and the Consultant's personnel against any financial liability as long as the said loss or damage does not arise from the fault or negligence of the Consultant and subcontractor or their personnel.

Article 41- Delivery, Examination, Acceptance Proceedings and Final Account
When the work under the contract is completed, the Contractor shall apply to the Contracting Entity with a petition containing the demand to conduct the acceptance proceedings after taking delivery of the work. The works carried out shall be subject to preliminary inspection by the Control Organization upon the instruction to be given by the Contracting Entity. As a result of such inspection, if the Control Organization finds out that the works are completed in compliance with the requirements set forth in the Contract and annexes in the present condition or even though it is not completed, the work that is received is free of any condition that may significantly damage the functionality of work and it is acceptable in its present condition to meet the needs of the Contracting Entity, it shall inform to the Contracting Entity that the work is completed or deemed accepted with the punch list. In this case, the Contracting Entity shall establish an Acceptance Commission that consists of minimum three persons and the acceptance stage commences. The examination and acceptance proceedings of the work received shall be performed within ...................34 business days as from the date of delivery of the work according to the provisions laid down in the "Regulation on Examination and Acceptance of Procurements of Consultancy Services" published in the Official Gazette #24968 dated 19.12.2002, and then the final account report shall be issued.35

If the deficiencies or defects that are unacceptable for meeting the needs of the Contracting Entity since they are significant and they prevent the functionality of work in the inspection made upon the petition of the consultant, this shall be notified to the Contracting Entity and the acceptance stage shall not be initiated. The Contracting Entity shall send a notice in advance of ............ days36 clearly indicating the reasons to the Consultant to complete the deficiencies in accordance with the Contract and annexes thereto, and request him to complete the works. If the Consultant fails to make the works acceptable in a timely manner after this notice, the Contract shall be terminated. If this completion period causes exceeding the period set forth in Article 9, such exceeding period shall be subject to working under penalty.

Upon the second application for delivery after the deficiencies are remedied in such period of time, the Control Organization shall make an inspection again and inform to the Contracting Entity that the works are completed in compliance with the requirements set forth in the Contract and annexes in the present condition or even though it is not completed, the work that is received is free of any condition that may significantly damage the functionality of work and it is acceptable in its present condition to meet the needs of the Contracting Entity with a punch list after the remedial of deficiencies and defects. If the Consultant or his attorney is not present in the Acceptance in spite of the call or denounces from signing the Acceptance Protocol, this shall be written into minutes separately.

If the work is approved by the Acceptance Committee after the inspection with the Consultant or attorney, an Acceptance Protocol shall be drawn up and signed by the Consultant or his attorney. If the Acceptance Committee finds out the defects and deficiencies concerning the acceptance of work, it shall issue a list indicating the defects and deficiencies found out and determine the period necessary to remedy them.

If the deficiencies found out by the Acceptance Committee during the acceptance are not remedied by the Consultant within the period of time determined, the penalty at the amount of ...............%37 of the amount written in Article shall be applied as the delay penalty according to the condition of deficiencies to be remedied, and the date of acceptance shall be postponed to the date of remedial of deficiencies. However, if this delay exceeds the period indicated in the contract, the Contracting Entity can get third parties to remedy such deficiencies. The value of such works shall be deducted from the receivables or performance bonds, if any, of the Consultant. In this case, the penalty continues to be applied and the date of acceptance is postponed until the deficiencies are completed.

The date to be taken as basis for the date of acceptance shall be the date when the Work is readily available for acceptance, and the Acceptance Commission shall determine this date and enter into the minutes. A Certificate of Acceptance shall be issued indicating the works carried out (where necessary, a list including the work items) in detail as a result of completion of the acceptance proceedings.

Article 42- Final Account Report
The Acceptance Committee shall issue a Final Account Report with the complementary documents indicating the value of all works carried out in compliance with the Contract in detail within 60 days at the latest following the issuance of Certificate of Acceptance. The Final Account Report shall include the following information as a minimum:
(a) The amount that is outstanding and payable certainly as per the Contract according to the opinion of the Acceptance Committee;
(b) The balance (if any) that the Contracting Entity is payable to the Consultant or vice versa, as the case may be, after deducting all sums paid by the Contracting Entity beforehand and all receivables of the Contracting Entity under the Contract;
If an amount is foreseen to be paid to the Consultant during the stage of Final Account, this amount shall be paid to the Consultant by the Contracting Entity within 60 days following the submittal of the Final Account to the Contracting Entity.

Article 43 – Amendment to the Contract
It shall be possible to amend the provisions of the contract on the following points provided that the contract amount is not exceeded and it is agreed by both the Contracting Entity and the Consultant:

a) Place of performance or delivery place of the work
b) Duration of the work and terms of payment for this duration provided that the work is performed and delivered before its due time.

It shall not be possible to amend the provisions of the Contract and arrange a supplemental contract apart from the cases cited above.

Article 44 –Assignment of Contract
44.1. It shall be possible to assign the Contract upon written consent of the Contracting Officer under compulsory circumstances. The Contracting Entity shall check whether there is any hindrance as per Article 16 of Public Procurement Contracts Law No. 4735 while considering the demands for assigning the contract. The signatures of the Contracting Officer, assignor and the assignee shall be affixed to the Assignment Contract that is concluded following the essential approval of the Contracting Officer and the statements of the assignor and the assignee to the effect that they are not in the cases specified in Article 16 of Public Procurement Contracts Law No. 4735 shall be within the Assignment Contract, and the assigned receivables must meet the requirements applicable for the initial procurement. Approval of the assignment of Contract by the Contracting Officer shall not release the assignor from any liability concerning the works carried out until the date of assignment.

44.2. In the event that the Contractor assigns the contract without any authorization and that the Contracting Entity realizes that the Contractor assigns or is assigned another contract within three years following and prior to the assignment date excluding the assignments made in order to change the title and legal status of the company, the Contract shall be terminated and provisions of Articles 20, 22 and 26 of Law No. 4735 shall be applicable for the assignor and the assignee.

Article 45 – Death, Bankruptcy, Severe Illness, Retention or Imprisonment of Contractor
......................................................................................................................38

Article 46- Termination of Contract by Consultant
Should the Consultant notifies in writing with the reasons thereof to the Contracting Entity that he shall not be able to perform the contract since he is in a financial difficulty except for the force majeure after the contract is concluded, the performance bond, and if any, additional performance bonds shall be registered as revenue without any necessity to issue a letter of protest and the contract shall be terminated, and the final account shall be settled according to the general provisions.

Article 47- Termination of Contract by the Contracting Entity
   The Contracting Entity shall terminate the Contract in the following cases:
a)    If the Consultant does not perform the Contract in accordance with the provisions of the tender document and the Contract or complete the work in time, and if the same situation continues in spite of the written notice of the Contracting Entity for a period specified in this Contract, but not less than twenty days with regard to the application of the delay penalty at the rate stipulated in the Contract,

b)    If it is determined that the Consultant enters into prohibited deeds or actions stipulated in Article 25 of Public Procurement Contracts Law No. 4735 during the performance of the Contract,

   the performance bonds and, if any, additional performance bonds shall be registered as revenue and the Contract shall be terminated, and the account shall be settled according to the general provisions without any need for a written protest.

Article 48- Termination of the Contract Due to Prohibited Deeds and Actions Prior to Contract
If it is found out after the Contract is concluded that the Consultant has entered into prohibited acts or deeds during the procurement process as per Law No. 4734, the performance bond, and if any, additional performance bonds shall be registered as revenue and the contract shall be terminated, and the final account shall be settled according to the general provisions.

However, provided that at least 80% of the contract is completed and there is public interest in the completion of the contract, in the case that;

(a)    There is not sufficient time to tender the remaining part of the contract again due to urgency of work,
(b)    It is not possible to have another Consultant perform the contract, and
(c)    Prohibited act or deed of the Consultants does not hinder the completion of the contract,

the Contracting Entity may require from the Consultant to complete the contract without terminating the contract, and in this case, the Consultant shall be liable to complete the contract. However, in this case, Article 26 of Law No. 4735 shall be applied and penalty shall be received from the Consultant at an amount equal to the performance bond, and if any, additional performance bonds. Such penalty may be collected by making deductions from the progress payments.

Article 49- Provisions on Termination of Contract
49.1. If the Contract is terminated since the Consultant is in financial difficulty, the contract shall be deemed terminated as of the expiry of the period of the notice, which shall not be less than twenty (20) days from the date of notification of the reasons and results clearly through notary public when the demand for termination of the Contract is delivered to the Contracting Entity, and in the event that the Consultant fails to fulfill the commitment in accordance with the tender document and the provisions of contract or complete the work in a timely manner (this period shall neither affect the duration of contract nor prevent imposing delay penalty), and the contract shall be deemed termination as of the date of determination of the fact that the Consultant has entered into the prohibited acts or behaviors listed in Article 26 of Public Procurements Law #4735 during the implementation of the Contract and that the Consultant has entered into the prohibited acts or behaviors after the contract is concluded as per Public Procurement Contracts Law #4735 in the procurement process. The resolution of termination shall be taken by the Contracting Entity within seven days following such dates. This resolution shall be notified to the Consultant within five days following the date of resolution.

49.2. Should the contract is terminated according to Articles 19, 20 and 21 of Public Procurement Law No. 4735, performance bond, and if any, additional performance bonds shall be updated according to the monthly wholesale price index published by the State Statistics Institute from the date of furnishing the same until such bonds are registered as revenue. The difference between the updated amount and the amount of performance bond, and if any, additional performance bonds shall be received from the Consultant.

49.3. In cases where the performance bond is received by deducting from the progress payments, the received amount shall be registered as revenue, and furthermore, the amount of performance bond corresponding to the amount of work not performed following the date of termination shall be updated according to the provisions set forth in paragraph one and received from the Consultant.

49.4. If the contract is terminated, the performance bond and additional performance bonds, if any, of the Consultant shall be registered as revenue as per Article 20 of Public Procurement Contracts Law #4735. The performance bonds registered as revenue cannot be set off against the debt of the Consultant. Furthermore, the provisions set forth in Article 26 of Public Procurement Contracts Law #4735 concerning prohibition from participating in the procurements shall be applied for the Consultants and the loss and damage incurred by the Contracting Entity owing to the termination of Contract shall be indemnified by the Consultant.
The dissolution of work under the Contract terminated shall be made according to the general provisions.

Article 50- Termination of Contract Due to Force Majeure
The Contracting Entity or Consultant may unilaterally terminate the Contract due to force majeure. However, if the Consultant requests time extension due to such force majeure, the work has to be completed according to the contract and annexes thereto at the end of the time extended to enable to Contracting Entity to terminate the contract. In the event that the contract is terminated, the final account shall be settled according to the general provisions and the performance bond, and if any, additional performance bonds shall be registered as revenue.

Article 51- Additional Works, Decreased Works and Dissolution of Works That Are Possible Under Contract
......................................................................................................................39
Article 52 – Indemnification Liability of the Contractor
(Amended: 08/06/2004 – 25486 Official Gazette/ Art. 51) The Consultant shall be directly liable for the losses and damages that may arise owing to the facts that the works undertaken under this Contract are not carried out in compliance with the legislation, and that the professional ethics are not respected, and that the information and experience are not used for the benefit of the Contracting Entity and owing to the similar reasons, and he shall be successively liable for fifteen years with the contractors and subcontractors that undertake the works in the event that construction supervision services are rendered.

Such losses and damages shall be covered and compensated by the Consultant according to the general provisions. Furthermore, the provisions of Article 27 of Public Procurement Contracts Law No. 4735 shall applicable for such Consultant.

Article 53- Cases Not Stipulated Herein
In cases that are not stipulated herein, the provisions of Public Procurement Law #4734 and/or Public Procurement Contracts Law #4735, and the general provisions shall be applied in the events that there are not the related provisions in such laws.

Article 54- Settlement of Disputes
.....................................................................................................................40

Article 55- Miscellaneous Provisions
......................................................................................................................41
Article 56 – Enforcement
This Contract hereby shall take force following the notification of the registration of the Contract by the Court of Accounts, and in cases where the registration by Court of Accounts is not necessary, the date when the contract is signed by the respective parties42.

This Contract hereby, which consists of ............................ Articles, has been issued and executed in ................. copy / copies after fully read and understood by the Contracting Entity and the Contractor on ....................... and ............ copy / copies has / have been delivered to the each party.


CONTRACTING ENTITY43            CONSULTANT44





   "1- In all cases other than the ones set forth in item 1 of paragraph 1 of Article 2 of International Arbitration Law No. 4686;
   "Any discrepancy arising out of this contract and annexes hereto shall be under the jurisdiction of ......................................... (the court of the city where the contracting entity is located shall be written herein) .............................. courts and execution offices."

   2- In all cases set forth in item 1 of paragraph 1 of Article 2 of International Arbitration Law No. 4686;
   "Any discrepancy that cannot be settled through mutual agreement between the Contracting Entity and Consultant as well as any dispute arising in connection with the application, interpretation of the provisions provided in the Contract and similar issues (except for the cases where the Contracting Entity shall have the authority to act and decide at its own disposal according to the provisions of the contract) shall be settled according to the provisions of International Arbitration Law No. 4686 dated 21.06.2001.

   The arbitration panel shall consist of three arbitrators. Each party shall assign one arbitrator and such two arbitrators shall select the third arbitrator within a period of thirty days. If either of the parties fails to select his own arbitrator within thirty days after he receives the notification to this end sent through Notary Public by the other party or the two arbitrators assigned by the parties fail to select the third arbitrator within thirty days of such assignment, both the second arbitrator and the third arbitrator shall be selected by Court of First Instance for .................. ( the city where the contracting entity is located shall be written herein)upon the demand of either of parties. The third arbitrator shall be the chairman.

   Substantial legal rules related to any dispute shall be governed by the Turkish Law. The language of the arbitration shall be Turkish. The venue of arbitration shall be ......................................... (the city where the contracting entity is located shall be written herein) ............................... The court having the jurisdiction shall be the Court of First Instance for ......................................... (the city where the contracting entity is located shall be written herein) ............................... Even if the dispute is referred to the arbitrator by the Contracting Entity or Consultant, the Consultant shall be liable to continue to work and comply with the resolutions that will be reached by the Contracting Entity in respect of performance of the work.


41.   In cases where there are not provisions in this Standard Contract, the provisions can be included in the contracts under this heading to include one or more articles by the way of replacing the articles provided that they are not on contrary to the tender document and the provisions of Public Procurement Law #4734 and Public Procurement Contracts Law #4735, and General Specification for Works and the legislation published by the Public Procurement Authority in relation to them as well as the other regulating legislation and imperative legal rules, and that they do not make amendments to the provisions of this Standard Contract or eliminate the consequences of them according to the nature of work.

42.   A) If it is stipulated to get the contract certified by notary public in the tender document, "registration and certification by notary public" shall be written instead of "execution by the respective parties".
   B) In cases where the pertinent legislation stipulates another procedure for the enforcement of the contract, the contracting entity shall write this article according to the said legislative provisions.

43.     Name, surname and position of the contracting officer shall be written herein.

44.     Name, surname and signature of the Consultant (authorized representative if he is a corporate body) or duly authorized representative; and if he is a joint venture, the names, surnames and signatures of all partners of the joint venture (if the partner is a corporate body, the authorized representative of the partner) shall be written herein.

#66
ANNEX: 3
STANDARD ADMINISTRATIVE SPECIFICATION FOR THE CONSULTANCY SERVICES PROCUREMENTS THROUGH THE RESTRICTED TENDER PROCEDURE

I -   SUBJECT MATTER OF PROCUREMENT AND MATTERS CONCERNING THE SUBMITTAL OF TENDERS

Article 1- Information About the Contracting Entity
1.1. Contracting Entity's;
a)  Name  :.................................................................................................
b)  Address:...
c)  Phone Number:...
d)  Fax Number:...
            e)  E-mail:..................................................................................................
f)  Name- Surname/ Title of the Contact Person: ....................................................................

1.2. The tenderers may get information about the procurement by contacting the contact persons from the addresses and numbers given above.

Article 2- Information about the subject work of procurement
Consultancy services, which constitute the subject matter of the procurement;
a)   Name:...
b)   Code, if any:...
c)   Physical quantity and type:...................................................................................................
d)   Place of performance:...
e)   Other information (if any): ..........................................................................

Article 3- Information About the Procurement
a)  Procurement procedure: Restricted Tender Procedure
b)  Address of procurement:...
c)  Date of procurement:...
d)  Time of procurement:...
e)  Place of meeting of the tender commission: ......................................................

Article 4- The Place Where The Tenders Shall Be Submitted, Deadline Date and Time Of Submitting Tenders
4.1. The place where the tenders shall be submitted, deadline date and time of submitting tenders;
a)  The place where the tenders shall be submitted:...................................................................
b)  Deadline date of submitting tenders (date of procurement):.....................................
      c)  Deadline time of submitting tenders (time of procurement):....................................

4.2. The tenders shall either be submitted to the place specified above until the (deadline) date and time of submitting tenders or sent via registered and prepaid mail. The tenders that are not received by the Contracting Entity until the (deadline) time of procurement shall not be taken into consideration.

4.3. The tenders submitted to or received by the Contracting Entity shall not be returned for any reason other than for issuing addendum in accordance with Article 15 of this Specification hereby.

4.4. In the event that the date determined for the procurement is holiday, the procurement shall be held on the next business day at the time specified above at the same place, and the tenders submitted up to that time shall be accepted.
4.5. The procurement shall be held at the time specified above in the event that working hours change later.

4.6. National time setting of Turkish Radio Television Authority (TRT) shall be taken as basis for time settings.

Article 5- Scope of tender document
5.1 The tender document comprises of the following documents:
a)Administrative Specification
b)Draft Contract
c)   ......................................................................1
   .....................................................2

5.2. In addition, addenda to be published by the Contracting Entity as well as the written clarifications to be made by the Contracting Entity upon the written request of the tenderers shall be an integral part of the tender documents in accordance with the relevant provisions of this Specification hereby.

5.3. The tenderer shall be liable to carefully review the content of all document listed above. The tenderer shall be liable in the event that the tenderer does not fulfill the requirements for submitting the tender. The tenders that are not in compliance with the procedure stipulated and described in the tender document shall not be taken into consideration.

II- MATTERS CONCERNING PARTICIPATION IN PROCUREMENT

Article 6- Documents required for participation in procurement (Amended: 08/06/2004- 25486 Official Gazette/ Art. 46)
6.1. Letter of invitation to the procurement shall be sent to the candidates that are included in the shortlist as per Article 49 of the Public Procurement Law #4734 as a result of the evaluation of prequalification and the candidates that are requested to submit tenders in this way are required to submit the following documents within their tenders in order to be able to participate in the procurement:
   a) Declaration of address for notification as well as phone and, if any, fax number and e-mail address for contact,
   b) Signature statement or signature circular indicating the authority of the tenderer to submit tender,
   - Signature statement certified by the notary public in the event that the tenderer is a physical body,
- Original or notarized copy of Trade Registers Gazette indicating the shares of the shareholders of the company and their position within the company or the documents evidencing such issues as well as the signature circular of the corporate body certified by the notary public in the event that the tenderer is a corporate body,
   c) Certificate of Chamber of Commerce and/or Industry or Profession registered as per the legislation;
   - In the event that the tenderer is a physical body, the certificate received within the year when the first announcement with regard to the procurement is made and indicating registration to the Chamber of Commerce and/or Industry or Profession,
   - In the event that the tenderer is a corporate body, the certificate received from the registered Chamber of Commerce and/or Industry within the year when the first announcement with regard to the procurement is made and indicating the registration of the corporate body,
d) If the tenderer is represented in the procurement, the power of attorney indicating that the representative is authorized to submit tender for and on behalf of the tenderer and signature statement certified by the notary public,
e) Tender Letter, form and content of which are described in the Specification,
f) Bid bond if specified in Article 27 of this Specification hereby,
g) Written letter of commitment evidencing that the tenderer is not in the cases listed under items (a), (b), (c), (d), (e), (g) and (i) of Article 10 of Law #4734 (KIK029.0/D).
h) Declaration concerning the corporate bodies, which the tenderer is shareholder, and the capital companies, which the tenderer holds more than half of the capital according to whether the tenderer is a physical or corporate body (KIK029.4/D).
i) Letter of commitment stating that that the work experience certificate shall not be made available to another corporate body if the work experience is required (KIK029.3/D).
j) In the event that the tenderer is a joint venture, the joint venture statement, form and content of which are described in the Specification hereby (Standard Form KIK030.0/D) and the consortium declaration, form and content of which are specified in this Specification hereby.
k) List of the works, which the tenderers intend to assign subcontractors in the event that it is specified in Article 18 of the Specification hereby.
l) Certificates set forth in the Regulation on Implementation of Consultancy Services Procurements evidencing that the tenderer is domestic if so specified in Articles 7 and 8 of this Specification.
m) The documents that must be drawn up and submitted in compliance with the enclosed Technical Tender Forms in order to be able to evaluate the technical tenders.

1) The tenderers shall submit their technical tenders within the "Technical Tender Forms" including the similar works, which have been accepted perfect by the contracting entity, as realized by the tenderer by minimum 70% of the contract amount or supervised or managed by minimum 50% for the services for the public or private sector at home or abroad within the last five years in order to demonstrate their special service experiences in the work, which constitutes the subject matter of procurement, or works of similar quality and scale (Standard Form KIK054.0/D). With regard to the joint ventures, the partners constituting the joint venture shall submit these forms separately.

2) The tenderers shall submit a report explaining the operation plan and method (methodology) as well as project management and organizational structure, which they propose for the work to be procured, within the technical tenders (Standard Form KIK054.1/D).

3) The tenderers have to submit the "Organizational Plan" proposed for the management and organization of work as well as the time schedule concerning the key personnel and the "Work Schedule" indicating the working plans within their technical tenders (Standard Form KIK054.3/D, KIK054.4/D).

4) The tenderers shall declare the executive staff and technical personnel proposed for the work to be procured, their positions, terms of experience and office within the "Technical Tender Forms", which constitute part of the technical tender (Standard Form KIK054.2/D). Curriculum vitaes of the proposed personnel (Standard Form KIK038.0/D), notarized diplomas or certificates of graduation and the certificates indicating the period of experience and that they are working within the organization of tenderer shall be attached to this declaration. Notarized letter of commitment has to be submitted for the personnel to be provided under commitment.

n) ................3

In the case of joint ventures, each partner shall be liable to submit the documents listed under items (b), (c), (g), (h), (i) and (l) separately.

6.2. Way of Submitting Documents
6.2.1- The tenderers have to submit the originals or the notarized true copies of the documents required in their tenders. In respect of these documents, the notarized originals of the work experience certificates indicating the work experience in the work, which constitutes the subject matter of procurement, or similar works shall be submitted to the contracting entity by the tenderer that is awarded before the approval of contracting officer.
6.2.2- The notarized documents have to bear the expression "this is a true copy" certifying the true copy of the original document, otherwise the documents certified in witness of copies of photocopies of the same with the expression "this is the same copy of the document issued" or any expression with the same meaning shall be rejected.

6.2.3- The Tenderers may also, instead of originals, include into their tenders the copies bearing the expression "Original copy seen by the Contracting Entity" or any expression with the same meaning after the Contracting Entity sees the same prior to the procurement.

6.2.4- The documents except for the ones listed under Article 6.2.4.1 hereunder that will be submitted by the domestic or foreign tenderers have to be issued according to the legislation of the respective country and approved by the Consulate of the Republic of Turkey in the country where it is issued or the Turkish Ministry of Foreign Affairs. However, official documents issued from the countries that are party to the Convention on Abolishing the Obligation to Certify Foreign Official Documents and included in the scope of Article 1 of this convention shall be exempted from the approval of the Consulate of the Republic of Turkey in the country where it is issued or the Turkish Ministry of Foreign Affairs provided that they bear the "Apostille" seal. Provided that there is an agreement or convention containing provisions that require certain proceedings in respect of certifying the signature, seal or stamp on the documents between the Republic of Turkey and any other state or states, the approval of documents issued from such countries shall be subject to the provisions of this agreement or convention.

6.2.4.1....................................................................3.1

6.2.5- In the event that the Turkish translations of the documents are required in this Specification, translations of official documents issued abroad as well as the documents listed in the tender document by the Contracting Entity have to be approved by the Consulate of the Republic of Turkey or the Turkish Ministry of Foreign Affairs. Translations of documents that bear the seal of Apostille as well as the translations of documents that are not required to be approved by the Consulate of the Republic of Turkey or the Turkish Ministry of Foreign Affairs must be rendered by the sworn translators and notarized.

Article 7- Openness of procurement to foreign tenderers4
...

Article 8- Application of price advantage in favor of domestic tenderers5
........................................................................................................................

Article 9- Those that cannot participate in the procurement
9.1. Those listed below shall in no way be able to participate in the Procurement directly or indirectly, or as a subcontractor for themselves or on behalf of third persons;
   a) Those that are prohibited temporarily or permanently to participate in public procurements as per Public Procurement Law No. 4734 and Public Procurement Contracts Law No. 4735, and provisions of other laws, and those charged with the offenses within the scope of Anti-Terrorism Law No. 3713 and organized crimes.
b) Those that have gone into false bankruptcy as determined by the relevant authorities.
c) Authorized persons of the Contracting Entity in procurement and those persons employed in the boards having such authority.
d) The persons in charge of preparing, executing, concluding and approving any procurement procedures in relation to the work which is the subject of this procurement.
e) Wives and close relatives up to third generation as well as relatives–in–law up to second generation, adopted children of the persons an those who adopted them, specified in paragraphs (c) and (d).
f) Partners and companies of the persons specified in paragraphs (c), (d) and (e) (excluding the incorporated companies in which such persons are not within the Board of Directors or do not have more than 10% of the capital).
g) Tenderers of the foreign countries determined pursuant to the resolutions of the Council of Ministers as per sub-paragraph 8 of paragraph (b) of Article 53 of Public Procurement Law No. 4734.

9.2. The contractors that provide consultation services in relation to the services, which constitute the subject of the procurement, shall not be able to participate in the procurement of this work. This prohibition shall be applicable for the companies in partnership and management affiliation as well as the companies, which hold more than half of the capital of such companies.

9.3. Any bodies such as foundations, associations, unions and fund under the body of the Contracting Entity or established for any reason related to the Contracting Entity as well as the companies partner to these organizations cannot participate in the procurement.

9.4. The tenderers that participate in the procurement irrespective of these prohibitions shall be disqualified from the procurement and the respective bid bonds shall be registered as revenue. If the contract is awarded without determining the case at the stage of evaluation of tenders submitted, the relevant performance bond shall be registered as revenue and the procurement shall be cancelled.

Article 10- Reasons of disqualification from the procurement
The tenderers that are in the following cases shall be disqualified from the procurement;
a) Tenderers that go into bankruptcy, that are in the process of dissolution, whose transactions are executed by a court, that declare concordat, that suspend works or that are in similar situations as per the legislative provisions applicable in their own countries.
b) Tenderers whose bankruptcy has been declared, for whom compulsory dissolution is resolved, that are under the management of a court due to their debts to the creditors or that are in similar situations as per the legislative provisions applicable in their own countries.
c) Tenderers that have any outstanding debt due to social security premiums as per the legislative provisions of Turkey and those applicable in their own countries.
d) Tenderers that have any outstanding debt due to taxes as per the legislative provisions of Turkey and those applicable in their own countries.
e) Tenderers that are charged with any offense due to their professional activities within five years prior to the date of procurement.
f) Tenderers that are proved to act against business or professional ethics during the performance of works for the authority which holds the procurement within the last five years prior to the date of procurement.
g) Tenderers that are prohibited against any professional activity by the registered chamber as per the relevant legislation by the date of procurement.
h) Tenderers that do not furnish the data and documents specified in this Article or that furnish misleading data and/or counterfeit documents.
i) Tenderers that participate in the procurement even though they are prohibited to participate in the procurement pursuant to Article 9 of the Specification.
j) Tenderers that are determined to enter into prohibited deeds and actions as specified in Article 11 of the Specification.

Article 11- Prohibited acts and behaviors
11.1. It is prohibited to enter into the following acts and behaviors in the procurement process:
a) To plot mischief or attempt to do so in procedures related to the procurement through trick, promise, threat, use of influential forces, false competition, agreement, corruption, bribe or other means.
b) To drift the tenderers into hesitation, to hinder participation, to offer or encourage agreements with the tenderers, to enter into actions affecting competition or resolution of the tender commission.
c) To issue, use counterfeit documents or guarantees, and attempt to such actions.
d) To submit more than one tender personally or by proxy directly or indirectly for himself/ herself or on behalf of others apart from the cases of submitting alternative tenders.
e) To participate in the procurement even though the tenderer is prohibited to participate as per Article 9 of the Specification.

11.2. Tenderers that enter into the said prohibited acts or behaviors shall be subject to the provisions in Chapter Four of Law No. 4734 according to the nature of such act and behavior.

Article 12- Tender preparation expenses
All costs arising from the preparation and submittal of tenders shall be borne by the tenderers. The Contracting Entity shall in no way be liable to such costs undertaken by the tenderer irrespective of the progress and conclusion of the procurement.

Article 13- Getting information about the subject matter of procurement
13.1. It shall be under the responsibility of the tenderer to obtain all necessary information to visit the place and surrounding areas of the work, make inspections, prepare tenders and enter into contracts, and all costs arising from visiting the place and surrounding areas of work shall be borne by the tenderer.

13.2. Visiting the place of work, the tenderer shall be deemed to have information about the type and nature of work, climatic conditions, the activities and the quantity and type of materials to be used as necessary for performance of the work, access to the workplace and the necessary items to establish the site in respect of cost and time, and to learn everything necessary in relation to the risks that may affect the tender, extraordinary cases and similar issues.

13.3. The contracting entity shall allow the people to access to the building and/or land where the work shall be carried out when such a request is made for visiting the place of work.

13.4. Since it shall be assumed that the tenderer has visited the place of work, they have to prepare their tenders on the basis of this assumption.

Article 14- Clarification about the tender document
14.1. The tenderers shall be able to request a clarification to be made with regard to the points they need in the tender document with a written application until twenty (20) days prior to the deadline date of submitting tenders at the stage when the tenders are prepared. The requests for any clarification following this date shall not be taken into consideration.

14.2. In the event that the request for such a clarification is approved, the written clarification by the Contracting Entity shall be sent to all tenderers included in the shortlist with a registered and prepaid letter or delivered personally against signature to ensure that all tenderers are informed at least ten (10) days prior to the deadline date of submitting tenders.

14.3. The clarification shall cover the description of the problem and detailed answers of the Contracting Entity. However, the identity of the tenderer that requests for such clarification shall not be disclosed.

Article 15- Amendment to tender document
15.1. It is essential that there not be any amendment to the tender document following the announcement of procurement. However, in the event that substantial or technical mistakes or deficiencies that may adversely affect the preparation of tenders or performance of works are determined by the Contracting Entity or notified written by the tenderers, an amendment may be made to the tender document by issuing an addendum.

15.2. The said addendum shall be sent to all tenderers who are sent the letters of invitation along with the tender document in writing via a registered and prepaid letter or delivered personally against signature, and the tenderers shall be ensured to be notified at least ten (10) days prior to the date of procurement.

15.3. In the event that additional time is needed to prepare tenders due to such an amendment, the Contracting Entity may postpone the date of procurement for maximum twenty (20) days only once with an addendum.

15.4. In the event that an addendum is issued, the tenderers that submit their tenders before such an addendum shall be allowed to withdraw their former tenders and submit their new tenders.

Article 16- Freedom of the Contracting Entity to cancel the procurement before the time of procurement
16.1. When deemed necessary by the Contracting Entity or in the event that the points which hinder the procurement and impossible to remedy are determined in the tender document, the procurement may be cancelled before the time of procurement.

16.2. In this case, the cancellation of the procurement shall be notified to the tenderers indicating the reason of such cancellation. The tenderers that submit their tenders up to that time shall be informed about the cancellation of the procurement separately.

16.3. In the event that the procurement is cancelled, all submitted tenders shall be deemed rejected and such tenders shall be returned to the tenderers without opening them.

16.4. The tenderers shall not be entitled to claim any right against the Contracting Entity due to the cancellation of the procurement.

Article 17- Joint ventures
17.1. More than one physical body or corporate body shall be able to submit tenders for the procurement through establishing a joint venture.

17.2. Tenderers that shall submit tender for the procurement through establishing a joint venture shall submit a Joint Venture Statement, an example of which is enclosed, in which the pilot partner within the joint venture is specified, together with the tender.

17.3. In the event that a joint venture is awarded the contract, the respective joint venture shall be requested to submit the joint venture contract certified by a notary public before signing the Contract.

17.4. The Joint Venture Agreement (Joint Venture Statement) and Contract shall include the provision that physical bodies and legal entities comprising the joint venture shall be liable jointly and successively to perform the contract.

17.5. The pilot partner shall have the majority of shares in the joint venture. The percentage of share of the partners shall be indicated in the Joint Venture Agreement (Joint Venture Statement) and Contract.

17.6..............................................................................................................6

Article 18-Subcontractors7
..........................................................................................................................

III. MATTERS CONCERNING PREPARATION AND SUBMITTAL OF TENDERS

Article 19- Type of tender and contract8
........................

Article 20- Language of tender9
.................................................................................................................................................
   
Article 21- Currency applicable for tenders and payments10
.........................................................................................................................

Article 22- Partial tenders11
...

Article 23- Costs included in the tender price
23.1. .........................................................12
23.2. .........................................................13
23.3. In the event that any increase occurs in the expenses provided in articles (23.1.) and (23.2) or similar costs arise, it shall be assumed that the tender price meets such increases or differences.

23.4. The Value Added Tax (VAT) payable during the stage of payment the price of the work which is the subject of the contract shall be paid separately to the contractor by the Contracting Entity in accordance with the relevant legislation.

Article 24- Way of submitting tenders
24.1. Documents constituting the tender

a) (Amended: 08/06/2004- 25486 Official Gazette/ Art. 47) The tender to be drawn up by the tenderer shall contain the following documents:

1) Financial tender

Tender letter and enclosed financial tender forms
Bid bond (if required)

2) Technical tender

Other documents and technical tender listed in Article 6.1 of this specification except for the tender letter and bid bond (standard forms KIK038.0/D, KIK054.0/D, KIK054.1/D, KIK054.2/D, KIK054.3/D, KIK054.4/D).

b) The tender letter containing the price offered for the consultancy services, which constitute the subject matter of procurement, and the enclosed financial tender forms as well as the bid bond, if required, shall constitute the financial tender of the tenderer. This tender shall be put inside an envelope by writing "Financial Tender" on it.

All other documents required in the tender document for technical evaluation shall constitute the technical tender of the tenderer. This tender shall be put inside a separate envelope or package by writing "Technical Tender" on it.

The name, surname or trade title, full notification address and the work related to the tender shall be written on both envelopes. The adhesive parts of the envelopes shall be signed, sealed and stamped.

The envelope for the financial tender and the envelope or package for the technical tender shall be brought together and put inside a separate envelope or package. The name, surname or trade title, full notification address and the work related to the tender and the full address of the contracting entity shall be written on this envelope or package. The adhesive part of the envelope or package shall be signed, sealed and stamped by the tenderer.

24.2. The tenders shall be submitted to the Contracting entity (the office where the tenders shall be submitted) in return for receipts with order numbers until the time of the procurement stipulated in the tender document. The tenders submitted after this time shall not be accepted and returned to the tenderer without opening them.

24.3. Tenders may be submitted by registered and prepaid mail. The tenders sent by mail shall reach to the Contracting entity until the time specified in the tender document. The receiving time of the tenders which shall not be put into effect due to delays in mail shall be written into a minute and shall not be taken into consideration.

24.4. The tenders submitted shall not be returned and replaced for any reason other than the case of issuing an addendum according to the provisions of this Specification hereby.

24.5. In the event that the duration of submitting tenders is extended with an addendum, all rights and liabilities of the Contracting entity and tenderers with regard to the former date of submitting tenders shall be deemed extended until the deadline date of submitting tenders determined again.

Article 25- Form and content of tender letter
25.1. The tender letters shall be submitted as written and signed in accordance with the sample form enclosed.

25.2. With regard to the Tender Letter;
a) It must specified that the tender document is fully read and accepted,
b) The tender price must be written clearly and consistently both in figures and in words,
c) There must not be any scraping, erasure and correction on it,
d) The Tender Letter must be signed by the authorized persons by indicating their names, surnames or trade titles.

25.3. Tender letters of tenderers that submit tenders as a joint venture are required to be signed by all members of the joint venture or persons duly authorized to submit tenders.
   
Article 26- Validity duration of tenders
26.1. The validity duration of tenders shall be at least .............14 calendar days following the date of procurement. The tender letters, which are indicated to have shorter validity duration, shall not be taken into consideration.

26.2. If necessary, the Contracting Entity may request the tenderers to extend the validity period to the maximum extent specified above before the existing validity period expires. The tenderers may accept or reject this request of the Contracting Entity. The bid bond of the tenderer that rejects the request of the Contracting Entity with regard to extension of the validity period shall be returned.

26.3. The tenderers that accept such a request shall be liable to adapt their bid bond to the new validity period and provisions of bid bond in all aspects without changing the conditions of the tender and the contract.

26.4. Requests and answers to this effect shall be made in writing, sent via registered and prepaid mail or delivered personally against signature.

Article 27- Bid Bond15
27.1. The tenderers shall provide bid bonds at the rate to be determined by them, but not less than 3% of the tender price. The tenderers that provide less than 3% of the tender price shall be disqualified from the evaluation.

27.2. In the event that the tenderer is a joint venture, the partners may provide bid bonds at the rate of their share, and bid bond may be paid by one or some of the partners provided that the total amount is not less than the minimum amount of bid bond.

27.3. The duration must be specified in guarantee letters issued by banks as bid bonds. This duration shall be determined by the tenderers, but not less than thirty (30) days from the validity period of tender.

27.4. The tenders submitted without any acceptable bid bond shall be disqualified from the evaluation since the requirements of the Contracting Entity are not met.
   
Article 28 – Values accepted as bid bond
28.1. The values that shall be accepted as bid bonds are as the following:
a) Turkish Lira in currency,
b) Letters of Guarantee issued by banks and private financial organizations,
c) State Domestic Borrowing Notes exported by the Treasury Secretariat and certificates issued in lieu of these notes.

28.2. Those notes exported by including the interest in the nominal value of the notes and certificates issued for these notes as specified in item (c) shall be accepted as a guarantee over the sales value corresponding to the principal.

28.3. Letters of Guarantee issued by foreign banks that are allowed to act in Turkey as per the relevant legislation and the Letters of Guarantee issued by the banks in Turkey with counter-guarantee of banks or similar loan organizations acting outside Turkey shall be accepted as a guarantee.
   
28.4. In the event that Bank Letter of Guarantee is issued, scope and form of the said Bank Letter of Guarantee shall comply with the principles set forth by the Public Procurement Authority. Letters of Guarantee issued in incompliance with the aforesaid principles shall not be accepted as a guarantee.

28.5. The guarantees may be replaced with other values accepted as a guarantee.

28.6. The guarantees received by the Contracting Entity shall in no way be sequestrated and attached with interim injunction.

Article 29- The office where the bid bonds shall be submitted
29.1. Bank Letters of Guarantee shall be submitted to the tender commission inside the financial tender envelopes.

29.2. The guarantees other that the Bank Letters of Guarantee must be furnished to the Accountancy or Directorates of Accounting, and the receipts thereof must be submitted inside the financial tender envelopes.
   
Article 30 – Returning bid bonds
30.1. The Letters of Guarantee belonging to the tenderer that is awarded the contract and the second tenderer that is the most advantageous in economic terms shall be delivered to the Accountancy or Directorates of Accounting after the procurement. Bid bonds of the other tenderers shall be returned immediately.

30.2. The bid bond provided by the tenderer that is awarded the contract shall be returned after the provision of the required performance bond and concluding the contract. (If it is specified that performance shall not be received before the contract in Article 42 titled "Performance Bond" of this specification, it shall not be required to furnish the performance bond.)

30.3. In the event that a contract is concluded with the tenderer that is awarded the contract, the guarantee of the second tenderer that is the most advantageous in economic terms shall be returned just after signing the contract.

30.4. The bid bond shall be returned to the tenderer or the authorized representative personally against signature.

IV- MATTERS CONCERNING EVALUATION OF TENDERS
AND CONCLUDING THE CONTRACT
Article 31 – Receiving, opening and evaluating the tenders
31.1. The number of tenders submitted until the deadline time of submitting tenders shall be written into a minute by the Tender commission, and it shall be announced to the participants and then procurement shall immediately be held. If the number of tenders is less than three, the procurement shall not be held. The Tender commission shall review the tender envelopes in receiving order. Name, surname or trade title, full notification address of the tenderer, the work referred by the tender, full address of the Contracting entity holding the procurement on the envelope as well as the signature and stamp of the tenderer on the adhesive part of the envelope shall be checked in this review. The envelopes that do not meet the said requirements shall be written into a minute, and shall not be taken into consideration.

31.2. The envelopes shall be opened in order of receipt in front of the participants together with the tenderers. The envelopes concerning the technical tenders are opened and it shall be checked whether the documents required are submitted completely or not, and this shall be written into the minutes. The envelopes concerning the financial tenders shall be written into the minutes and packaged, sealed, signed and stored collectively by the tender commission without opening the same. At this stage, any amendment shall not be made to the documents constituting the tender, and the deficient documents, if any, shall not be completed, and the session shall be closed for evaluating the tenders immediately without deciding on the rejection or acceptance of any tender.

31.3. (Amended: 08/06/2004- 25486 Official Gazette/ Art. 48) Firstly, it shall be checked whether all documents of the tenderers taken as basis for the technical evaluation are issued in accordance with the requirements or not by the tender commission. The tenders of the tenderers, whose documents are incomplete or fail to meet the requirements as found in the first session as per Article 31.2 of this Specification, shall be disqualified.

31.3.1. (Annex: 08/06/2004- 25486 Official Gazette/ Art. 48) If the documents that are required to be submitted within the technical tender envelope within the tender document and any of the annexes that are compulsory to be attached to such documents as per the pertinent legislation are not submitted by the candidates, such deficient certificates and annexes thereto shall not be completed.

31.3.2. (Annex: 08/06/2004- 25486 Official Gazette/ Art. 48) However;
a) In the event that there is lack of information that does not have an effect to change the basis of the tender in the documents submitted, the documents to remedy such lack of information;

b) The documents to remedy the lack of information that has the effect to cause hesitation concerning the content of the document and arising from the authorities, agencies or persons that issue the documents except for the compulsory factors that these documents must bear in the documents submitted by the tenderers and issued other authorities, agencies or persons shall be completed within the due time.

31.1.3. (Annex: 08/06/2004- 25486 Official Gazette/ Art. 48) If the documents submitted by the tenderers within the period provided in respect of completing the lack of information are issued on a date later than the date of procurement, these documents shall be accepted if the tenderer evidences that he meets the requirements of participation as of the date of procurement.

31.4. As a result of such preliminary evaluations and proceedings, the technical grades of the tenderers whose documents are complete and in compliance with the procedure shall be determined according to the technical evaluation criteria and grades set forth in the tender document. The tenders of tenderers that receive grades below the minimum technical grade indicated in the tender document shall be disqualified.

31.5. The tenderers whose documents are incomplete or that do not meet the requirements shall be notified in writing that they shall be disqualified and the financial tenders shall be given to them or their representatives at the date and time of opening the financial tenders without opening the same.

31.6. The evaluation shall be made in two stages including the Technical and Financial Stage. Firstly Technical and then Financial Tender shall be evaluated. The weighting ratio given to the technical and financial tenders is as follows:

Coefficients of Weight for Technical and Financial Grades:
Coefficient of Weight for Technical Grades= .......................16
Coefficient of Weight for Financial Grades= ........................17
Total                  = 1.00

Article 32 – Requesting the tenderers to clarify their tenders
32.1. The Contracting entity may request the tenderers to clarify their tenders with regard to unclear points in order to review, compare and evaluate the tenders upon the demand of the Tender Commission.

32.2. This clarification shall not be requested to change the tender price or to comply the defective tenders with the requirements indicated in the tender document, and shall not be used to this effect.

32.3. The request for clarification of the Contracting entity and the replies of the tenderer to this request shall be in writing.

Article 33- Criteria applicable for technical evaluation

33.1. The tenderers that are below the minimum grade of ............18 shall be disqualified from the technical evaluation and shall not be processed to the financial evaluation. The tenderers that receive grades below the minimum technical grade shall be notified in writing that they are disqualified and their financial tenders shall be returned to them or their representatives on the date and time of opening the financial tenders without opening the same.
In the technical evaluation;
The grading shall be made at the percentages given below in view of the specific experiences of the tenderers in the works of similar quality and scale, and conformity of the working schedule and method (methodology) as well as the project management and organization structure proposed for the consultancy work with the terms of reference, and the executive staff and the key personnel proposed for this work and their qualifications, their compatibility with the work and employment status.

CRITERIA
GRADE19
a) Experiences in works of similar quality and scale
[ ... ]
b) Conformity of method (methodology), working plan and organization structure proposed for the work with the terms of reference
[ ... ]
Sub-criteria
Sub-Grade

1) Way of performing the work
[ ... ]

2) Work schedule
[ ... ]

3) Conformity of organization structure with terms of reference
[ ... ]

4) Conformity of executive and technical staff proposed with the terms of reference
[ ... ]

5) Reporting techniques (work progress report/ interim report etc.)
[ ... ]

6) Management and supervision (quality control) techniques
[ ... ]

7) Equipment
[ ... ]

8) etc.
[ ... ]

c) Executive staff and technical personnel

[ ... ]
Sub-Criteria
Sub-Grade

1) General qualifications
[ ... ]

2) Suitability for job
[ ... ]

3) Local experience and skills in Turkish language
[ ... ]

4) Employment status (own personnel/ under contract)
[ ... ]

TOTAL GRADE
[100]

33.2. Determination of technical grades
After the tenderers that remain below the minimum technical grade are disqualified, the technical grades of the other tenderers shall be evaluated using the formula (PTI= 100 x PT / PTmax).

Here,
PTI   = nominal technical grade
PT   = raw technical grade (over the minimum grade) given to the tenderer by commission          (average technical grade)
PTmax   = highest raw grade given to the tenderer by commission (average technical grade).

33.3. The date and time of opening the financial tenders shall be notified in writing to the tenderers that receive minimum technical grade or the grades over such grade. Firstly, the results of the technical evaluation and the technical grades shall be disclosed in front of the participants at the date and time indicated by the tender commission. Later, the package stored collectively and containing the financial tenders shall be opened by the tender commission. The financial tender envelopes of the tenderers, the tenders of whom are disqualified, shall be returned personally to them or their representatives, and such tenderers shall be taken out of the procurement hall. After these proceedings, the financial tender envelopes of the tenderers that receive minimum technical grade and over shall be opened and written into minutes by disclosing the tender prices. The envelopes concerning the financial tenders that are not returned shall be sent immediately after the conclusion of the procurement.

The tenderers that do not submit tender letters and bid bonds, if required, and such documents of whom are not in compliance with the procedure shall be disqualified.

33.4. At the subsequent stage, it shall be checked whether there is any arithmetic error in the schedules enclosed to the tender letters submitted by the tenderers. In the event that an arithmetic error is determined in multiplication and sum within the schedules enclosed to the tender letters indicating the tender prices, the arithmetic errors shall be discretionally corrected by the Tender commission on the basis of unit prices offered by the tenderers. The tender found as a result of such correction shall be accepted as the principal tender of the tenderer and the matter shall immediately be notified written to the tenderer. The tenderer shall be liable to notify written within five days following the date of the aforesaid notification whether he accepts the corrected tender or not. In the event that the tenderer notifies that he does not accept the corrected tender or does not reply within this duration, then the tender shall be disqualified from evaluation and the bid bond furnished shall be registered as revenue.
Later, the financial grades of the tenderers whose tender letter and bid bond, if required, are in compliance with the procedures shall be determined.

Article 34- Determination of financial grades
The financial grades of the tenderers whose tender letter and bid bond, if required, are in compliance with the procedures shall be calculated by using the formula (PM= 100 x Mmin / M).
Here,
PM   = denotes the financial tender grade,
Mmin   = denotes the lowest price offered by the tenderers,
   M   = denotes the price offered by the tenderer.

Article 35- Concluding the procurement
The total grades shall be determined by multiplying the technical and financial grades of the tenderers with the coefficients of weight for technical and financial grades and summing such grades.
P= PTI x KT + PM x KM
Here,
   P   = Total grade
   PTI   = Nominal technical grade
   KT   = Coefficient of weight for technical grade
   PM   = Financial tender grade
   KM   = Coefficient of weight for financial grade

The tenderer that has the highest total grade shall be invited to negotiate on the terms of reference, conditions of contract, personnel and financial tender. However, this negotiation shall not be to the extent to significantly amend the requirements set forth in the tender document. The scope of negotiation on the financial tender can only be towards making arrangements to the terms and schedule of payment in favor of the contracting entity provided that the amount of financial tender is not changed. If the terms are clarified and the parties agree as a result of such negotiation, the contract shall be awarded to such tenderer.

In the event of equality of grades, the tenderer that has higher financial tender grade shall be invited for negotiation. If the financial tender grade is equal as well, the tenderer that has more similar work experience shall be invited for negotiation. In the joint ventures, the work experience of the tenderer that has more work experience among the tenderers constituting the joint venture shall be evaluated.

Article 36 – Freedom of Contracting Entity to reject all tenders and cancel the procurement
36.1. The Contracting Entity shall be free to reject all tenders and cancel the procurement upon the resolution of the Tender commission. The Contracting Entity shall not have any liability due to the cancellation of all tenders.

36.2. In the event that the procurement is cancelled, the situation shall immediately be notified to all tenderers.

36.3. Furthermore, the Contracting Entity shall notify the reasons of the cancellation of the procurement to all tenderers if any of the tenderers requests to this effect.

36.4. The procurement shall be cancelled if the number of tenderers is less than three as a result of technical or financial evaluation.

Article 37- Award of procurement
37.1. The tenderer that receives the highest grade shall be awarded the contract as a result of evaluation made according to the provisions of this Specification hereby.

37.2. The Tender commission shall make its resolution with reasons thereof and submit to the contracting officer for approval.
   
Article 38 – Approval of the procurement award
38.1. The Contracting entities shall check whether the tenderer who is awarded the contract is prohibited from taking part in the procurements through the Public Procurement Authority prior to approval of the contracting officer and annex the document to this effect to the procurement award.

38.2. The Contracting Officer shall approve the procurement award within five (5) business days at the latest following the date of award or cancel the award with the reasons thereof.

38.3. The procurement shall be deemed valid if the award is approved, and invalid if it is cancelled by the Contracting Officer.

Article 39 – Notification of final procurement award
39.1. The result of the procurement shall be notified to all tenderers including the tenderer that is awarded the contract that submit tenders for the procurement, against signature or via registered and prepaid mail sent to their notification addresses within maximum three (3) days following the approval of the procurement award by the contracting officer. The seventh (7th) day following the mailing date shall be assumed as the notification date of the procurement award.

39.2. In the event that the tenderers participating in the procurement whose tenders are not taken into consideration or not found suitable make a written request within five (5) days following the date of notification, the Contracting Entity shall notify the reasons within five (5) days following the date of such a request.

39.3. In the event that the procurement award is cancelled by the contracting officer, the tenderers shall again be notified in the same way.

Article 40 – Invitation for concluding the contract
40.1. In the event that the notification period as per Article 39.2 of this Specification hereby expires or visa by the Ministry of Finance is required, the tenderer that is awarded the contract shall be invited to sign a contract via a registered and prepaid mail within three (3) days following the notification to the effect that such a visa is issued. The seventh day following the mailing date shall be assumed as the notification date of the award to the tenderer. Twelve (12) days shall be added to this duration for the foreign tenderers.
   
40.2. This notification may also be made to the tenderer at the Contracting Entity against signature.

40.3. The tenderer shall be liable to sign the contract by providing the performance bond within ten (10) days following the notification date of this invitation (If it is specified in Article 41- "Performance Bond" of this specification that performance bond shall not be received before concluding the contract, the performance bond shall not be required).

Article 41 – Performance bond
............................................................................20

Article 42 – Duty and responsibility of the tenderer in concluding the contract

42.1. (Amended: 08/06/2004 – 25486 Official Gazette / Art. 49) The tenderer that is awarded the contract shall be liable to sign the contract by furnishing the documents evidencing that he is not in the cases listed under items (a), (b), (c), (d), (e) and (g) of Article 10 as well as the performance bond within the period as stipulated under Article 40.3 of this Specification hereby. The bid bond shall be returned immediately after the contract is signed.

42.1.1. (Annex: 08/06/2004 – 25486 Official Gazette / Art. 49) The foreign tenderers shall submit the equivalent documents evidencing that they are not in the cases listed under items (a), (b), (c), (d), (e) and (g) of Article 10 of this Specification according to the legislation of their respective countries.

If there are not equivalent documents within the frame of legislation binding the tenderer or it is not possible to issue such documents, they shall submit the written statements to this effect. However, this shall be confirmed by the mission chiefs in Turkey of the country of nationality of the foreign physical body or where the head office of the company of the foreign corporate body is seated or the mission chiefs in such countries of the Republic of Turkey.

42.2. If these requirements are not met, the bid bond of the tenderer that is awarded the contract shall be registered as revenue without sending a protest letter and judgment by a court.

42.3. Furthermore, the tenderer that does not conclude a contract according to the applicable procedures apart from force majeure even though the said tenderer is awarded the contract shall be prohibited to participate in any procurements held by all public authorities and bodies as stipulated in the relevant Law for a period between six months and one year as per Article 58 of Law No. 4734.

Article 43 – Notification to the second tenderer that has the highest grade
43.1. (Amended: 08/06/2004 – 25486 Official Gazette/ Art. 50) In the event that the tenderer that is awarded the contract does not provide the documents evidencing that he is not in the cases listed under items (a), (b), (c), (d), (e) and (g) of Article 10 as well as the performance bond or does not sign the contract, then the contract may be concluded through negotiation with the second tenderer that has the highest grade if it is found suitable by the contracting officer. In this case, it shall be checked if the second tenderer that has the highest grade is prohibited and shall be required to submit the documents evidencing that he is not in the cases listed under items (a), (b), (c), (d), (e) and (g) of Article 10 as per Article 38.1 prior to the approval by the contracting officer.

43.2. The said tenderer shall be notified in accordance with the provisions of Article 40 of this Specification hereby.

43.3. In the event that the second tenderer that has the highest grade does not sign the contract, the bid bond of the said tenderer shall be registered as revenue, and the procurement shall be cancelled.

43.4. Furthermore, the tenderer that does not conclude a contract according to the applicable procedures apart from force majeure even though the said second tenderer that has the highest grade shall be prohibited from participating in any procurement held by all public authorities and bodies as stipulated in the relevant Law for a period from six months to one year as per Article 58 of Law No. 4734.
 
Article 44 – Duty and responsibility of the Contracting Entity in concluding the contract
44.1. The tenderer may defer from his commitment provided that the said tenderer notifies the situation to the Contracting Entity with a written notice issued by the Notary Public for a period of ten (10) days within maximum five (5) days following the expiry of the period stipulated in Article 40.1. of this Specification hereby in the event that the Contracting Entity does not fulfill its obligation with regard to concluding the contract.

44.2. In this case, the bid bond of the said tenderer shall be returned and the said tenderer shall be entitled to claim the documented costs incurred to provide such bid bond.

Article 45 – Concluding the procurement with contract
45.1. The share of Public Procurement Authority shall be invested to the accounts of the said Authority before the contract is signed if the contract amount exceeds the amount specified in sub-paragraph (1) of paragraph (j) of Article 53 of Law No. 4734.

45.2. The contract prepared by the Contracting Entity in accordance with the conditions specified in the tender document shall be signed by the contracting officer and the Contractor.

45.3...............................................................................................................21

45.4. In the event that the Contractor is a joint venture, the contract shall be signed by all partners of the joint venture.

45.5. ........................ concerning the execution of Contract shall be borne by the Contractor22.

V – MATTERS CONCERNING IMPLEMENTATION OF CONTRACT

Article 46- Place and terms of payment
46.1. Any payment in connection with the services, which constitute the subject matter of procurement, shall be effected by the (Accountancy/ Accounting Office of) .............................

46.2. The provisions concerning the progress payments, accrual, deductions and payments are included in the draft contract.

46.3. The contractor has to spend the appropriations specified in the contract for the services within the same year in compliance with the work schedule.

46.4. If the contractor carries out more work than the work schedule not exceeding the contract amount, the amount of such excessive work shall be paid within the boundaries of appropriations.

Article 47- Advance payment, conditions and amount23
..................................

Article 48- Price difference
48.1. The price difference ......................................................................................24

Article 49- Date of work commencement and completion
49.1. The work shall commence within ................... (in figures and words) calendar days following the notification of the proceed to work to the contractor or the address indicated for notifications by the Contracting Entity following the execution of the contract (in respect of works subject to registration by Court of Accounts, following such registration).25

49.2. The duration of work is ...................................... (in figures and words) calendar days26 as from the date of commencement to work.

Article 50 – Cases and conditions for extension of duration
50.1. Time extension shall be graced in the following cases that are accepted as force majeure:
a) Natural disasters.
b) Legal strikes.
c) Epidemics.
d) Announcement for partial or general mobilization.
e) Other cases determined by the Public Procurement Authority if necessary.

50.2. To ensure that the cases listed above are accepted as force majeure, such cases;
a) Shall not be caused owing to any defect attributable to the Contractor,
b) Shall have the nature to hinder the performance of the contract,
c) The contractor shall not have sufficient power to eliminate this hindrance,
d) The contractor shall notify the Contracting Entity in writing within twenty days following the day when the event of force majeure occurs,
e) Shall be documented by the competent authorities.

50.3. Furthermore, in the event that the Contracting Entity does not fulfill the contractual obligations (delay in handing over the worksite, approving the projects and work schedule, obtaining the permissions, licenses and approvals, and lack of appropriation etc.), and any delay occurs with reasons not caused by the contractor, and the work is not completed in time, the situation shall be reviewed by the Contracting Entity upon the request by the contractor provided that this hinders the performance of the contract and the contractor does not have sufficient power to eliminate the hindrance, and the Contracting Entity may extend the time for a part of or whole work according to the nature of the work.
   
Article 51- Increased works, decrease and dissolution of work that may be performed within the scope of contract 27:
.................................................................................................................................................

Article 52 – Penalties and deductions28
........................................................................................................................

Article 53 – Terms of inspection, examination and acceptance
The inspection and acceptance of the services under the contract shall be performed in accordance with the provisions set forth in the draft contract.29

Article 54- Settlement of disputes
54.1. All disputes arising during the process until the contract is executed and enforced shall be settled by Administrative Judiciary provided that rules related to the request for review in Article 54 and the subsequent Articles of Public Procurement Law No. 4734 are reserved.

54.2. The relevant provisions stipulated in the contract of work shall be applicable for any dispute arising from the implementation of the contract.

VI- MISCELLANEOUS PROVISIONS
#67
ANNEX: 2
STANDARD PREQUALIFICATION SPECIFICATION FOR THE CONSULTANCY SERVICES PROCUREMENTS THROUGH THE RESTRICTED TENDER PROCEDURE

I -   SUBJECT MATTER OF PROCUREMENT

Article 1- Information About the Contracting Entity
1.1. Contracting Entity's;
a)  Name  :.................................................................................................
b)  Address:...
c)  Phone Number:...
d)  Fax Number:...
            e)  E-mail:..................................................................................................
f)  Name- Surname/ Title of the Contact Person: ....................................................................

1.2. The candidates may get information about the prequalification by contacting the contact persons from the addresses and numbers given above.

Article 2- Information about the subject consultancy services of procurement
Consultancy services, which constitute the subject matter of the procurement;
a)   Name:...
b)   Code, if any:...
c)   Physical quantity and type:...................................................................................................
d)   Place of performance:...
e)   Other information (if any): ..........................................................................

Article 3- Information About the Procurement
Procurement procedure: Restricted Tender Procedure

Article 4- Information about evaluation of prequalification
a)Place of evaluation of prequalification: ............................................................
b)Date and time of evaluation of prequalification: .................................................
c)Place of meeting of tender commission: ...........................................................

Article 5- Reviewing and obtaining the prequalification document
5.1. The prequalification document may be reviewed at the address specified above free of charge. However, those who shall apply for prequalification shall be liable to purchase the prequalification document approved by the Contracting Entity.
a)The place where the prequalification document can be reviewed:.......................................
b)The place where the prequalification document can be purchased:.....................................
c)Sales price of prequalification document (including tax if any): ..............................

5.2. The prequalification document shall be provided along with a memorandum indicating the documents in the content. The candidate shall check whether the documents comprising the prequalification document are true copies and the documents are complete. The Contracting Entity shall receive the declaration of the candidate indicating that he has received all true copy documents comprising the prequalification document with a signature affixed on the said memorandum.

5.3. The candidate shall be deemed to accept the conditions and rules within the prequalification document by purchasing the said document.
Article 6- The place where the prequalification applications shall be submitted, deadline date and time of application
6.1. The place where the application for prequalification shall be submitted, deadline date and time of payment:
a)  The place where the prequalification applications shall be submitted:.................................
b)  Deadline date and time of application:..............................................................................

6.2. The prequalification documents can be submitted to the place specified above until the deadline date and time of application or sent via registered and prepaid mail. The prequalification documents that are not received by the Contracting Entity until the deadline time of application shall not be taken into consideration.

6.3. The applications for prequalification submitted to or received by the Contracting Entity shall not be returned for any reason other than for issuing addendum in accordance with Article 17 of this Specification hereby.

6.4. In the event that the date determined for the evaluation of prequalification is holiday, the evaluation for qualification shall be made on the next business day at the time specified above at the same place, and the applications for prequalification submitted up to that time shall be accepted.

6.5. The evaluation of prequalification shall be made at the time specified above in the event that working hours change later.

6.6. National time setting of Turkish Radio Television Authority (TRT) shall be taken as basis for time settings.

Article 7- Reviewing and obtaining the prequalification document
The candidates can review the tender document free of charge at the address given below. The tender document shall be sent to the candidates that are included in the shortlist as a result of evaluation on prequalification in annex to the letter of invitation.

The place where the tender documents can be reviewed :....................................................

Article 8- Scope of prequalification document
8.1 The prequalification document comprises of the following documents:
a)Prequalification Specification
b)   ......................................................................1
   .....................................................2

8.2. In addition, addenda to be published by the Contracting Entity as well as the written clarifications to be made by the Contracting Entity upon the written request of the candidates shall be an integral part of the prequalification documents in accordance with the relevant provisions of this Specification hereby.

8.3. The candidates shall be liable to carefully review the content of all document listed above. The candidate shall be liable in the event that the candidate does not fulfill the requirements of application for prequalification. The applications that are not in compliance with the requirements set forth in the prequalification document and the procedure described in the prequalification document shall not be taken into consideration.

II. MATTERS CONCERNING APPLICATION FOR PREQUALIFICATION

Article 9- Documents required for application for prequalification
9.1. The candidates are required to submit the following documents within their letters of application for prequalification to be drawn up in compliance with the form of "Letter of Application" (Standard Form KIK017.0/D) annexed to the following documents:

a) Documents required for determination of general suitability:
1) Declaration of address for notification as well as phone and, if any, fax number and e-mail address for contact,
2) Certificate of Chamber of Commerce and/or Industry or Profession registered as per the legislation;
- In the event that the candidate is a physical body, the certificate received within the year when the first announcement with regard to the procurement is made and indicating registration to the Chamber of Commerce and/or Industry or Profession,
- In the event that the candidate is a corporate body, the certificate received from the registered Chamber of Commerce and/or Industry within the year when the first announcement with regard to the procurement is made and indicating the registration of the corporate body,
3) Signature statement or signature circular indicating the authority of the candidate to make application for prequalification,
- Signature statement certified by the notary public in the event that the candidate is a physical body,
- Original or notarized copy of Trade Registers Gazette indicating the shares of the shareholders of the company and their position within the company or the documents evidencing such issues as well as the signature circular of the corporate body certified by the notary public in the event that the candidate is a corporate body,
4) (Amended: 08/06/2004 – 25486 Official Gazette/ Art. 38) Written letter of commitment evidencing that the candidate is not in the cases listed under items (a), (b), (c), (d), (e), (g) and (i) of Article 10 of Law #4734 (KIK029.0/D),
5) If the candidate is represented in the procurement, the power of attorney indicating that the representative is authorized to participate in the procurement for and on behalf of the candidate and signature statement certified by the notary public,
6) In the event that the candidate is a joint venture, the joint venture statement, form and content of which are described in the Specification hereby (Standard form KIK030.0/D) and the consortium declaration, form and content of which are specified in this Specification hereby if it is stipulated in Article 19 that the consortiums may submit tenders as well,
7) Certificate indicating that the prequalification document has been purchased,
8) Certificates set forth in the Regulation on Implementation of Services Procurements evidencing that the candidate is domestic if so specified in Articles 10 and 11 of this Specification,
9) (Annex: 08/06/2004 – 25486 Official Gazette / Art. 38) Declaration concerning the corporate bodies, which the candidate is shareholder, as well as the stock companies, which the candidate holds more than half of the shares (KIK029.4/D),
10) (Annex: 08/06/2004 – 25486 Official Gazette / Art. 38) Letter of commitment stating that the work experience certificate shall not be made available to another corporate body (KIK029.3/D),
(Amended: 08/06/2004 – 25486 Official Gazette / Art. 38) In the case of joint ventures, each partner shall be liable to submit the documents listed under items (b), (c), (d), (j), (k) and (l) separately.
b) Documents required for evaluation of prequalification:
The candidates shall fill in each of the standard information forms given in annex to the Prequalification Specification and indicated herein below and document the information presented in the information forms on the basis of information and document. In respect of joint ventures, the partners constituting the joint venture shall submit these forms separately.
In respect of these forms;
1) Information Form 1- In General Information Form (Standard Form KIK050.0/D);
General introduction of the candidate shall be given.
2) Information Form 2- In General Services Experience Form (Standard Form KIK050.1/D);
The candidates shall indicate the consultancy works that they perform or supervise, or manage and that are completed or undergoing in order demonstrate the consultancy works that they carry out actively and their general experiences in this matter. The certificates indicating the work experience shall be annexed as the evidencing certificates.
3) Information Form 3A/ 3B/ 3C- In the form of works that are performed by minimum 70% or supervised or managed by minimum 50% of the contract amount within the last 5 years (Standard Forms KIK051.0/D, KIK051.1/D, KIK051.2/D);
The candidates shall indicate the similar works that are carried out by minimum 70% or supervised or managed by minimum 50% of the contract amount and that are accepted as perfect as of the date of announcement for prequalification in the public or private sector within the last five years. "Information Form 3A" shall be filled for the works completed, "Information Form 3B" for the works managed and "Information Form 3C" for the works supervised, and the certificates indicating the work experience shall be annexed as the evidencing certificates.
4) Information Form 4- In the Financial Status Statement (Standard Form KIK034.0/D);
The candidates shall inform the amounts of cash facility unused or security facility unused in order to document that they have the sufficient financial resources to cover the essential payments in cash in order to fulfill the contractual commitments during the undergoing works and in the future, and document such statements with "Bank Reference Letter" (Standard Form KIK034.1/D) in accordance with the "Information Form 5- Form of Bank Letter".
5) Information Form 6- In the Form of Financial Information/ Turnover Information (KIK034.2/D);3
The candidates shall give the turnovers achieved within the last two years prior to the year of evaluation on prequalification.
The balance sheet that has to be published as per the pertinent legislation or the parts of balance sheet deemed necessary, if such documents are unavailable, the equivalent documents and income statements shall be annexed to this form. In respect of free-employed bodies, the turnover shall be documented with free-employment profit book profit- expense summary.
6) Information Form 7- In Personnel Information Summary Table (Standard Form KIK052.0/D);
The candidates shall indicate the personnel to be assigned for rendering the subject services as well as their qualifications and the status of recruitment, and also the CVs of the personnel proposed shall be drawn up in accordance with "Information Form 8- CV Form" (Standard Form KIK038.0/D) and attached to this form.
7) Information Form 9- In the Equipment Summary Table (Standard Form KIK053.0/D);
The candidates shall specify the machinery, computers etc. equipment that shall be used for the consultancy services to be procured, their features and capacities and how they shall be procured (ownership, financial leasing etc.), and also declare in writing that they shall keep the same at the said work in a timely manner and in fully operating condition.
8) Quality Management System Certificate:4
............................................................................................

9.2. Way of Submitting Documents (Amended: 08/06/2004 – 25486 Official Gazette / Art. 39)
9.2.1- The candidates have to submit the originals or the notarized true copies of the documents required in their applications. In respect of these documents, the notarized originals of the work experience certificates indicating the work experience in the work, which constitutes the subject matter of procurement, or similar works shall be submitted to the contracting entity by the tenderer that is awarded before the approval of contracting entity.
9.2.2- The notarized documents have to bear the expression "this is a true copy" certifying the true copy of the original document, otherwise the documents certified in witness of copies or photocopies of the same with the expression "this is the same copy of the document issued" or any expression with the same meaning shall be rejected.

9.2.3- The Candidates may also, instead of originals, include into their tenders the copies bearing the expression "Original copy seen by the Contracting Entity" or any expression with the same meaning after the Contracting Entity sees the same prior to the prequalification.

9.2.4- The documents except for the ones listed under Article 9.2.4.1 hereunder that will be submitted by the domestic or foreign candidates have to be issued according to the legislation of the respective country and approved by the Consulate of the Republic of Turkey in the country where it is issued or the Turkish Ministry of Foreign Affairs. However, official documents issued from the countries that are party to the Convention on Abolishing the Obligation to Certify Foreign Official Documents and included in the scope of Article 1 of this convention shall be exempted from the approval of the Consulate of the Republic of Turkey in the country where it is issued or the Turkish Ministry of Foreign Affairs provided that they bear the "Apostille" seal. Provided that there is an agreement or convention containing provisions that require certain proceedings in respect of certifying the signature, seal or stamp on the documents between the Republic of Turkey and any other state or states, the approval of documents issued from such countries shall be subject to the provisions of this agreement or convention.

9.2.4.1 ....................................................................5.15

9.2.5- In the event that the Turkish translations of the documents are required in this Specification, translations of official documents issued abroad as well as the documents listed in the prequalification document by the Contracting Entity have to be approved by the Consulate of the Republic of Turkey or the Turkish Ministry of Foreign Affairs. Translations of documents that bear the seal of Apostille as well as the translations of documents that are not required to be approved by the Consulate of the Republic of Turkey or the Turkish Ministry of Foreign Affairs must be rendered by the sworn translators and notarized.

9.2.6-.......................................................................................................5.2

Article 10- Openness of procurement to foreign candidates6
...

Article 11- Application of price advantage in favor of domestic tenderers7
...

Article 12- General suitability
12.1. The applications of candidates that do not meet the general requirements for suitability shall not be taken into consideration.

a) Those that cannot make prequalification application for this procurement on behalf of themselves or others directly or indirectly or as subcontractor:

   1) Those that are prohibited temporarily or permanently to participate in public procurements as per Public Procurement Law No. 4734 and Public Procurement Contracts Law No. 4735, and provisions of other laws, and those charged with the offenses within the scope of Anti-Terrorism Law No. 3713 and organized crimes.
2) Those that have gone into false bankruptcy as determined by the relevant authorities.
3) Authorized persons of the Contracting Entity in procurement and those persons employed in the boards having such authority.
4) The persons in charge of preparing, executing, concluding and approving any procurement procedures in relation to the work which is the subject of this procurement.
5) Wives and close relatives up to third generation as well as relatives–in–law up to second generation, and adopted children of the persons specified in paragraphs (3) and (4).
6) Partners and shares of the persons specified in paragraphs (3), (4) and (5) (excluding the incorporated companies in which such persons are not within the Board of Directors or do not have more than 10% of the capital).
7) Candidates of the foreign countries determined pursuant to the resolutions of the Council of Ministers as per item 8 of paragraph (b) of Article 53 of Public Procurement Law No. 4734.
8) The contractors that provide consultation services in relation to the work, which constitutes the subject of the procurement, shall not be able to participate in the procurement. This prohibition shall be applicable for the companies in partnership and management affiliation as well as the companies, which hold more than half of the capital of such companies.
9) Any bodies such as foundations, associations, unions and fund under the body of the Contracting Entity or established for any reason related to the Contracting Entity as well as the companies partner to these organizations cannot participate in the procurement.

The candidates that participate in the procurement irrespective of the prohibitions above shall be disqualified from the prequalification. Furthermore, if the candidate is included in the shortlist and he submits tender for the procurement without determining the case at the stage of prequalification, the tender shall be void and the bid bond shall be registered as revenue. If the contract is awarded to any of them since they cannot be determined during the procurement phase, the performance bond shall be registered as revenue and the procurement shall be cancelled.

b) The candidates that are in the following cases shall be disqualified from the evaluation on prequalification:
1) Candidates that go into bankruptcy, that are in the process of dissolution, whose transactions are executed by a court, that declare concordat, that suspend works or that are in similar situations as per the legislative provisions applicable in their own countries.
2) Candidates whose bankruptcy has been declared, for whom compulsory dissolution is resolved, that are under the management of a court due to their debts to the creditors or that are in similar situations as per the legislative provisions applicable in their own countries.
3) Candidates that have any outstanding debt due to social security premiums as per the legislative provisions of Turkey and those applicable in their own countries.
4) Candidates that have any outstanding debt due to taxes as per the legislative provisions of Turkey and those applicable in their own countries.
5) Candidates that are charged with any offense due to their business activities within five years prior to the date of procurement.
6) Candidates that are proved to act against business or professional ethics during the performance of works for the authority which holds the procurement within five years prior to the date of procurement.
7) Candidates that are prohibited against any business activity by the registered chamber as per the relevant legislation by the date of procurement.
8) Candidates that do not furnish the data and documents specified in this Specification or that furnish misleading data and/or counterfeit documents.
9) Candidates that participate in the procurement even though they are prohibited to participate in the procurement pursuant to item (a) of the Specification.
10) Candidates that are determined to enter into prohibited acts and behaviors as specified in item (c) of the Specification.

c) Prohibited acts and behaviors during the procurement
1) To plot mischief or attempt to do so in procedures related to the procurement through trick, promise, threat, use of influential forces, false competition, agreement, corruption, bribe or other means.
2) To drift the candidates into hesitation, to hinder participation, to offer or encourage agreements with the candidates, to enter into actions affecting competition or resolution of the tender commission.
3) To issue, use counterfeit documents or guarantees, and attempt to such actions.
4) To submit more than one tender personally or by proxy directly or indirectly for himself/ herself or on behalf of others.
5) To participate in the procurement even though the candidate is prohibited to participate as per item (a) of the Specification
is prohibited, and the provisions set forth in  Chapter Four of Public Procurement Law No. 4734 shall be applicable for these that enter into such acts and behaviors according to the nature of such act and behavior.

In the joint ventures each of the partners has to meet the general requirements for suitability listed under this article.

Article 13- Expenses concerning the application for prequalification
All costs arising from the preparation and submittal of the applications for prequalification shall be borne by the candidates. The Contracting Entity cannot be held liable for such costs incurred by the candidates irrespective of the progress and conclusion of the procurement.

Article 14- Getting information about the service
It shall be under the responsibility of candidate to visit the location and surrounding areas of service, making surveys and obtain all information that may be needed for application for prequalification. All costs concerning getting information about the consultancy services shall be borne by the candidates.

If there is a demand of the candidate or his representatives for visiting the location of work, the contracting entity shall provide sufficient assistance to enable such people to access to the location of work.

Article 15- Date of work commencement and completion
15.1. The work shall commence within ................ (in figures and words)8 calendar days following the notification of the signing of the contract to the contractor or the address indicated for notifications by the Contracting Entity (in respect of works subject to registration by Court of Accounts, following such registration).

15.2. The duration of work is ...................................... (in figures and words) calendar days9.

Article 16- Clarification about the prequalification document
16.1. The candidates shall be able to request a clarification to be made with regard to the points they need in the prequalification document with a written application until twenty (20) days prior to the deadline date of submitting applications at the stage when the applications are prepared. The requests for any clarification following this date shall not be taken into consideration by the Contracting Entity.

16.2. In the event that the request for such a clarification is approved, the clarification by the Contracting Entity shall be sent in writing to all candidates that purchase the prequalification document until the said date with a registered and prepaid letter or delivered personally against signature. This written clarification by the Contracting Entity shall be made to ensure that all candidates are informed at least ten (10) days prior to the deadline date of submitting applications.

16.3. The clarification shall cover the description of the problem and detailed answers of the Contracting Entity. The identity of the candidate that requests for a clarification shall not be disclosed.

16.4. The written clarifications shall be given to the candidates who receive the prequalification document after the day when the clarification is made within the prequalification document.

Article 17- Amendment to prequalification document
17.1. It is essential that there is not any amendment to the prequalification document following the announcement. However, in the event that substantial or technical mistakes or deficiencies that may adversely affect the preparation of applications or performance of work are determined by the Contracting Entity or notified written by the candidates, an amendment may be made to the prequalification document by issuing an addendum.

17.2. The said addendum shall be sent to all candidates who purchase the prequalification document in writing in a registered and prepaid letter or delivered in hand in return for a signature, and the candidates shall be ensured to be notified at least ten (10) days prior to the deadline date of application.

17.3. In the event that additional time is needed to prepare applications for prequalification due to such an amendment, the Contracting Entity may postpone the date of procurement for maximum twenty (20) days only once with an addendum. It shall be continued to sell the prequalification documents and receive the tenders during the term of postponement.

17.4. In the event that an addendum is issued, the candidates that submit their applications for prequalification before such an amendment shall be allowed to withdraw their former applications and submit their new applications.

Article 18- Freedom of the Contracting Entity to cancel the procurement before the time of evaluation of prequalification
18.1. When deemed necessary by the Contracting Entity or in the event that the points which hinder the evaluation of prequalification and impossible to remedy are determined in the prequalification document, the procurement may be cancelled before the deadline time of application.

18.2. In this case, the cancellation of the procurement shall be notified to the candidates indicating the reason of such cancellation. The candidates that submit their applications until such time shall be informed about the cancellation of the procurement separately.

18.3. In the event that the procurement is cancelled, all applications submitted shall be deemed rejected and such applications shall be returned to the candidates without opening them.

18.4. The candidates shall not be entitled to claim any right against the Contracting Entity due to the cancellation of the procurement.

Article 19- Joint ventures
19.1. More than one physical body or corporate body shall be able to submit applications for prequalification through establishing a joint venture.

19.2. Candidates that shall submit applications for prequalification through establishing a joint venture shall submit a "Joint Venture Statement" (Standard Form KIK030.0/D), an example of which is enclosed, in which the pilot partner within the joint venture is specified, together with the application. If the candidates are found qualified and invited to the procurement, they shall include the same Joint Venture Statement in their tenders as well.

19.3. In the event that a joint venture is awarded the Contract, the respective joint venture shall be requested to submit the joint venture contract certified by a notary public before signing the Contract.

19.4. The Joint Venture Agreement (Joint Venture Statement) and Contract shall include the provision that physical bodies and corporate bodies comprising the joint venture shall be liable jointly and successively to perform the contract.

19.5. The pilot partner shall have the majority of shares in the joint venture. The percentage of share of the partners shall be indicated in the Joint Venture Agreement (Joint Venture Statement) and Contract.

19.6..............................................................................................................10

Article 20- Language of application for prequalification11
........................................................................................................................

IV- EVALUATION OF PREQUALIFICATION AND INVITATION FOR PROCUREMENT

Article 21- Submitting the documents of application for prequalification
21.1. The prequalification application document shall be put into an envelope (or package) in attachment to the letter of application. Name, surname or trade title of the tenderer, full address for notification, the work related to the application and full address of the Contracting Entity holding the procurement shall be written on this envelope. The adhesive part of the envelope (or package) shall be signed, sealed or stamped by the tenderer.

21.2. The applications for prequalification shall be submitted to the Contracting Entity (the office where the applications for prequalification shall be submitted) in return for receipts with order numbers until the deadline time of application. The applications for prequalification submitted after this time shall not be accepted, but returned to the candidates without opening them.

21.3. Applications for prequalification may be submitted by registered and prepaid mail as well. The applications for prequalification sent by mail shall reach to the Contracting Entity until the time specified in the prequalification document. The time of receipt of the applications for prequalification, which shall not be put into effect due to delays in mail, shall be written into a minute and shall not be taken into consideration.

21.4. In the event that the duration of submitting applications for prequalification is extended with an addendum, all rights and liabilities of the Contracting Entity and candidates with regard to the deadline time of application shall be deemed extended until the new deadline date of application.

Article 22 – Receiving and opening the applications for prequalification
22.1. The tender commission convenes at the place indicated in Article 4 of this Specification at the deadline date and time of application for prequalification and commence the evaluation for prequalification. In evaluation of prequalification, firstly, the number of tenders submitted until the deadline time of submitting tenders shall be written into a minute by the Tender commission, and it shall be announced to the participants and then evaluation on prequalification shall immediately be initiated.

22.2. The Tender commission shall firstly review the application envelopes in order of receipt in the evaluation. Name, surname or trade title, full notification address of the candidate, the work related to the application, full address of the Contracting Entity holding the procurement on the envelope as well as the signature and stamp of the candidate on the adhesive part of the envelope shall be checked in this review. The application envelopes that do not meet the said requirements shall be written into a minute, and shall not be taken into consideration.

22.3. Then, the appropriate envelopes shall be opened in order of receipt in front of the participants together with the candidates. It shall be checked whether the documents of the candidates are complete, and the in compliance with the described procedure. The candidates whose documents are deficient or are not in compliance with the described procedure shall be written into a minute. The candidates whose application envelopes are opened shall be revealed. The minutes related to these proceedings shall be signed by the Tender commission.

22.4. The rejection or acceptance of any application shall not be decided, and the documents comprising the application shall not be corrected and completed at this stage. The session shall be closed for the Tender commission to evaluate the applications immediately.

Article 23- Evaluation of applications for prequalification
23.1. (Amended: 08/06/2004 – 25486 Official Gazette/ Art. 40) In evaluation of the applications, it shall firstly be decided that the applications of the candidates whose documents are deficient or are not in compliance with the procedure pursuant to Article 22.3 of this Specification hereby shall be disqualified from the evaluation process.

23.1.1. (Annex: 08/06/2004 – 25486 Official Gazette/ Art. 40) In the event that the documents that must be submitted within the application envelope as per this Specification and the annexes that must be provided pursuant to the related legislation are not furnished by the candidates, such deficient documents and annexes thereto shall not be completed.

23.1.2. (Annex: 08/06/2004 – 25486 Official Gazette/ Art. 40) However,

a) In the event that there is lack of information that does not have an effect to change the basis of the application in the documents submitted, the documents to remedy such lack of information;

b) The documents to remedy the lack of information that has the effect to cause hesitation concerning the content of the document and arising from the authorities, agencies or persons that issue the documents except for the compulsory factors that these documents must bear in the documents submitted by the candidates and issued other authorities, agencies or persons shall be completed within the due time.

23.1.3. (Annex: 08/06/2004 – 25486 Official Gazette/ Art. 40) If the documents submitted by the candidates within the period provided in respect of completing the lack of information are issued on a date later than the deadline date of application, these documents shall be accepted if the candidate evidences that he meets the requirements of application for prequalification as of the deadline date of application.

23.2. The tenders of the candidates whose documents are complete and whose tender letter and bid bond are in compliance with the procedure as a result of these proceedings shall be evaluated in detail. The candidates that do not meet the general suitability requirements shall not be deemed qualified and shall be disqualified. If the number of candidates that meet the general suitability requirements is less than three, the procurement shall be cancelled.

23.3. In the later stage, it shall be checked whether the candidates meet the minimum prequalification requirements set forth in Article 24.

Article 24- Minimum requirements for prequalification

24.1. The candidates have to meet the following minimum requirements to be regarded as qualified.

a) Minimum requirements for financial capacity

1) The candidate has to have the unused cash facility at the amount of ........................., and unused security facility at the amount of .........................12.

The candidates that do not provide the required amount of cash or security facility shall not be accepted as qualified.

In respect of joint ventures, the amount of facilities can be covered by the partners jointly irrespective of their shares.

2)

- The current ratio (current assets / short term liabilities) indicating that the candidate has the necessary liquidity to ensure cash flow at certain periods and debt coverage in short term (within one year) must be minimum 0.5 (while calculating, the contract progress costs shall be deducted from current assets and the revenues from progress payments must be deducted from the short term liabilities).

- The shareholders' equity ratio indicating the share of the shareholders' equity in the assets (shareholders' equity/ total assets) must be minimum 0.1 (while calculating, the contract progress costs shall be deducted from the current assets and the revenues from progress payments must be deducted from the short term liabilities).

- The ratio of short term bank liabilities to the shareholders' equity must be less than 0.75.

Those requirements written above shall be sought as the minimum requirements for prequalification.

The tenderers that fail to meet such requirements in the previous year can submit the documents concerning the last two years. In this case, it shall be checked if the minimum values are met over the average of the last two years, for which the documents are submitted.

If the tenderer is a joint venture, each of the shareholders has to meet such requirements separately. In cases where the share of the pilot partner is more than 50% in the joint ventures, it shall be satisfactory when the pilot partner meet the requirements.

The ratio of total incomes/ total expenses must be minimum 1.25 for the last year or the average of the last two years according to the values indicated in the profit- expense summary in the free-employment profit book in relation to the free- employed persons. In this case, the ratios to be calculated over the balance sheets shall not be required.

3) The average turnovers of the candidates within the last two years shall be evaluated.

The average turnover of the last two (2) years required as a minimum condition shall be _____13.

(Amended: 08/06/2004 – 25486 Official Gazette/ Art. 41) In the joint ventures, the partners have to meet the minimum qualification criteria in proportion to their shares in the joint ventures.

b) Minimum requirements for technical capability

1) Minimum requirement for special service experience
It is requested as a minimum requirement that the candidates carry out or supervise or manage a work, which is the subject matter of procurement, or a similar work at the amount of __________14 provided that they carry out minimum 70% or supervise or manage minimum 50% of the contract amount within the last five years regressively as of the date of first announcement of the prequalification. The works accepted as similar works are indicated herein below.

Similar works: 15
________________________________________________________________________________
________________________________________________________________________________

In the evaluation, the work experiences of the candidates on the basis of a single contract shall be taken into account. More than one work experience cannot be evaluated cumulatively even though they are related to similar works.

(Amended: 08/06/2004 – 25486 Official Gazette/ Art. 42) In the joint ventures, the pilot partner has to provide minimum 70% of the minimum amount of work experience and each of the other partners has to provide minimum 10% of the minimum amount of work experience required. However, the total amount of work experience of the other partner or partners cannot be less than 30% of the minimum amount of work experience.

2) Minimum requirements for personnel status16
It is required to employ the key personnel, the positions and qualifications of whom are indicated herein below, as a minimum for the subject consultancy services.

Position            Quantity         Minimum Experience (Year)
________________         (______)         ___________________
________________         (______)         ___________________
________________         (______)         ___________________

The key personnel required as a minimum qualification requirement must be the experts of the consultancy services and must be working within the body of the candidate.

In the joint ventures, all key personnel of the pilot and other partners shall be evaluated wholly irrespective of their shares in partnership.

3) Minimum requirements for equipment17
The following equipment must be provided as a minimum for the subject consultancy services.

Description                  Quantity
________________________________      (______)
________________________________      (______)
________________________________      (______)

In the joint ventures, all equipment of the pilot and other partners shall be evaluated as a whole irrespective of the share of partnership.

24.2. The candidates that fail to meet the following minimum requirements shall not be accepted as qualified and shall be disqualified from the evaluation of prequalification. If the number of candidates that meet the minimum requirements for prequalification is less than three, the procurement shall be cancelled. If the number of candidates that meet the minimum requirements is equal to or less than the number of candidates to be included in the short list, all candidates that meet the minimum requirements shall be included in the shortlist and invited to submit tenders by sending letters of invitation. If the number of candidates that meet the minimum requirements is more than the number of candidates to be included in the shortlist, these candidates shall be graded according to the criteria mentioned in Article 25.

Article 25- Grading Criteria

(Amended: 08/06/2004 – 25486 Official Gazette/ Art. 42) The candidates that meet the minimum requirements shall be graded according to the criteria laid down in the following table depending upon the information, certificates and documents by filling in the "Information Forms" attached to the "Letter of Application for Prequalification" in two sections including the Financial Capacity and Technical Capability.

CRITERIA/ SUB CRITERIA               GRADE18
a)Financial capacities                  [.......]
b)Technical capabilities                  [.......]
1)General service experience               [.......]
2)Specific service experience               [.......]
3)Personnel status                  [.......]
4)Equipment status                  [.......]
5)Quality Management System Certificate (if required)   [.......]
                     TOTAL   [100]

Article 25- Grading the financial capacity

The average turnovers of the candidates within the last two years shall be evaluated.

The average turnover of the last 2 years accepted for the total grade shall be _______19

If the average value of the turnovers of the candidates for the last two years is;

a)equal to or more than 100% of the amount of turnover accepted for the total grade mentioned above, the grade shall be [......]20
b)equal to the amount of turnover requested as a minimum requirement, the grade shall be [......]21.

Linear proportion shall be applied for the intermediate values. In the joint ventures, the work experience of the partner that has the biggest experience shall be taken into account.

Article 27- Grading the technical capability
27.1. Grading the general service experience (Amended: 08/06/2004- 25486 Official Gazette/ Art. 44)
The general service experiences of the candidates shall be evaluated in the consultancy services.
General service experience of the candidates as of the date of announcement for prequalification shall be graded as follows;
a)If the activity period of the candidate is more than 20 years   [....] grades22
b)If it is 10-20 years (including 20 years)            [....] grades23
c)If it is 5-10 years (including 10 years)            [....] grades
d)If it is 0-5 years (including 5 years)               [....] grades

In the joint ventures, the pilot company shall be taken into account.

27.2. Grading the specific service experience

The works or similar works that the candidates carry out minimum 70% or supervise or manage minimum 50% of the contract amount within the last five years regressively as of the date of first announcement of the prequalification shall be evaluated.

In the evaluation, the work experiences of the candidates on the basis of a single contract shall be graded. More than one work experience shall not be evaluated cumulatively although they are related to similar works.

The amount of work accepted as the total grade shall be ____________24.

If the amount of similar works of the candidates is;

c)equal to or more than 100% of the amount of work accepted for the total grade mentioned above, the grade shall be [......]25
d)equal to the amount of work requested as a minimum requirement, the grade shall be [......]26.

Linear proportion shall be applied for the intermediate values. In the joint ventures, the work experience of the partner that has the biggest experience shall be taken into account.

27.3. Grading the employment status

The personnel proposed by the candidates for the subject consultancy services shall be evaluated.
The personnel, the positions and qualifications of whom are indicated below, shall be evaluated for grading in the subject consultancy services.27

Position
Quantity
Total Experience (Year)
Similar Experience (Year)
Grade
_____________
_________
____________
____________
[....] Grades
_____________
_________
____________
____________
[....] Grades
_____________
_________
____________
____________
[....] Grades
_____________
_________
____________
____________
[....] Grades



TOTAL28
[....] Grades

Linear proportion shall be applied for the intermediate values. In the joint ventures, all personnel of the pilot and other partners shall be evaluated as a whole irrespective of the shares of partnership.

27.4. Grading the equipment status

The equipment stipulated by the candidates for the subject consultancy services shall be evaluated.
The following equipment shall be graded for the subject consultancy services.29

Description
Quantity
Grade
____________________
(____)
[......] Grades
____________________
(____)
[......] Grades
____________________
(____)
[......] Grades
____________________
(____)
[......] Grades

TOTAL30
[......] Grades

Linear proportion shall be applied for the intermediate values. In the joint ventures, all equipment of the pilot and other partners shall be evaluated as a whole irrespective of the shares of partnership.

27.5. .......................................................................................31

Article 28 - Creating the shortlists and invitation to procurement.

The grades received by the candidates according to the evaluation criteria set forth in Articles 25, 26 and 27 shall be cumulated and they are classified according to these grades and the candidate [..........]32 that receives the highest grade shall be included in the shortlist.

If the number of candidates to be included in the shortlist is exceeded in the event of equality of grades, the works carried out or supervised or managed by the candidates within the last five years in relation to the similar works shall be taken into account and the candidate that has more work carried out or supervised or managed under a contract takes the higher place in the classification. The work experience of the partner that has the most work experience shall be evaluated in respect of the partners that constitute the joint venture.

The letter of invitation and tender document shall be submitted to the candidates that are included in the shortlist. The situations shall be indicated in writing to the candidates that fail to be included in the "Shortlist" and that are not found qualified.

Article 29- Cancellation of procurement
29.1. The procurement shall be cancelled when the number of candidates that can be invited to the procurement as a result of the evaluation of prequalification is less than three (3).

29.2. If the procurement is cancelled, this shall be notified to all candidates.

29.3. The candidates cannot claim any right from the contracting entity for cancellation of the procurement.

Article 30- Settlement of disputes
30.1. All disputes arising from the implementation of this Specification during the process until the contract is executed and enforced can be settled by Administrative Judiciary provided that rules related to the request for review in Article 54 and the subsequent Articles of Public Procurement Law No. 4734 are reserved.

30.2. The relevant provisions stipulated in the contract of work shall be applicable for any dispute arising from the implementation of the contract.

VI- MISCELLANEOUS PROVISIONS33
...............................................................................................................
#68
EGULATION ON IMPLEMENTATION OF CONSULTANCY SERVICES PROCUREMENTS


CHAPTER ONE
General Provisions

SECTION ONE
Implementation Principles

Purpose and Scope
Article 1- This Regulation hereby has been prepared to govern the principles and procedures to be applied by the contracting entities in the consultancy services procurements within the scope of section five of chapter two of Public Procurement Law No:4734 dd. 04/01/2002.

This Regulation enacted in relation to the implementation of Public Procurement Law No:4734 and Public Procurement Contracts Law No:4735 is integral with annexes hereto.

Legal Basis
Article 2- This Regulation has been prepared on the basis of Article 53 of Public Procurement Law No:4734.

Definitions
Article 3- The following definitions shall be applicable in the implementation of this Regulation other than the ones set forth in Article 4 of Law No:4734:

Threshold Value: (Amended: 08/06/2004 – 25486 Official Gazette/ Art. 1) Refers to the monetary limites defined under Article 8 of Law No:4734 and updated under Article 67 of the same Law for use in the application of the provisions concerning the procurement notice periods and rules as well as the participation of domestic tenderers solely in procurements or application of price advantage in favor of the domestic tenderers in the procurements for the services procurements;

Similar Work: Refers to the services that are similar in respect of quality and size with the service or portion of service, which is the subject matter of procurement, and that are performed with the same or similar procedures, and that have similar properties with respect to plants, equipment, financial power, expertise, personnel and organization;

Work Experience Certificate: Refers to the work completion certificate, work status certificate, work supervision certificate and work management certificate that provide the professional experience in the services or similar services, which constitute the subject matter of the procurement, and that are issued, given and evaluated according to the principles and procedures set forth in this Regulation;

   Estimated Cost: Refers to the anticipated cost of the services, which constitute the subject matter of procurement, and which is calculated with any kind of price inquiry before holding the procurement exclusive of value added tax and which is indicated in an estimation schedule with the bases thereto, and which are not specified in the procurement and prequalification notices, and which are not released to the tenderers or other persons that do not have an official relation with the procurement process.

Short List: Refers to the list where the limited number of candidates that are listed in the tender document and that are invited to submit tender for the procurement after the evaluation of prequalification.

Basic Principles
Article 4- The Contracting Entities shall be obliged to ensure transparency, competition, equal treatment, reliability, confidentiality, supervision by public opinion, and that the needs are met at appropriate conditions and in a timely manner, and that the resources are efficiently used.

The goods procurements, services procurements other than the consultancy services and works procurements may not be held together with the consultancy services procurements as long as there is not an acceptable natural relation among them.

The services procurements cannot be divided into lots with the intention of avoiding threshold values.

The procurement proceedings shall not be initiated unless there is a sufficient budget allocation.
Nature of consultancy services
Article 5- In order for the consultancy services to be subject to the specific provisions in section five of chapter two of Law No:4734;
Such services have to be in technical, financial, legal or similar fields such as drawing up EIA report, development of plan and software, designing, drawing up technical specification and inspection, and it has to be determined by the contracting entity that these services are comprehensive and complicated and require specific expertise and experience.

Determination of terms of reference
Article 6- The contracting entity shall draw up the terms of reference for the work to be procured in order to get consultancy services. The scope of the services mentioned in the terms of reference has to be in compliance with the budget of work. The terms of reference shall refer to the objective, scope and expected results of the services and the related existing studies and studies conducted in relation to the background of the services including the basic information clearly and in detail.

If there is transfer of knowledge and training etc. within the scope of procurement, this shall be clearly indicated in the terms of reference including the number of personnel that will be trained so that the consultant can estimate the required resources.

The terms of reference shall include the list of services and researches completed before in order to render the services and consequently which services are expected from the consultant such as the drawing up of reports, data, maps, researches, designs and tender documents shall be indicated. However, care has to be taken not to produce a very detailed and rigid terms of reference so that the consultants can suggest exclusive methodologies. The responsibilities of the contracting entity and consultant have to be expressed clearly and obviously in the terms of reference, and also, a description of the facilities, services, plants, equipment and personnel to be supplied by the contracting entity has to be provided.
The ones that are deemed necessary from the information listed below shall be included in the terms of reference:
a)Purpose and objectives of project,
b)Scope of services to be rendered with the budget allocated,
c)Supporting information (list of existing studies, data etc.),
d)Conditions for transfer of knowledge,
e)Training requirements,
f)List of services and researches required,
g)Applicable standards, regulations etc.,
h)Expected outputs (reports, maps, designs etc.),
i)Duration and/or schedule of services,
j)Geographical requirements, logistics and time of commissioning etc.,
k)Mutual responsibilities of the contracting entity and consultant,
l)Facilities to be provided for the consultant,
m)Stages (if any) of consultancy services,
n)Whether the work, which is the subject of consultancy services, will continue or not as intended by the contracting entity.

Domestic Tenderer
   Article 7- Domestic tenderer refers to the physical bodies that are the citizens of the Republic of Turkey and the corporate bodies incorporated under the laws of the Republic of Turkey.

   In order to be assumed as domestic tenderers, the physical bodies shall submit the copy of identity card evidencing the citizenship to the Republic of Turkey, and the corporate bodies shall submit the documents evidencing incorporation under the laws of the Republic of Turkey.

The following documents shall be provided to evidence incorporation of the tenderers having the capacity of legal person under the laws of the Republic of Turkey:
a) Trade registers gazette or the certificate issued by the associated trade registers office indicating the principal office of the company in respect of the companies;
b) Certificate of receipt issued by the relevant governmental office in respect of the Associations;
c) Copy of the register extract or the Official Gazette released to evidence registration to the central register kept by the General Directorate of Foundations in respect of Foundations;
d) Certificate issued by the relevant ministry in respect of the Cooperatives;
e) Certificate issued by the relevant authorities in respect of other corporate bodies.

These requirements shall be applicable for each partner comprising the joint venture separately.

(Amended: 08/06/2004 – 25486 Official Gazette/ Art. 2) The Contracting Entities shall be obliged to require the documents listed above from the candidates or tenderers in relation to being a domestic tenderer in the procurements, in which it is specified that only the domestic tenderers can participate and the price advantage shall be applied in favor of the domestic tenderers.


SECTION TWO
Estimated Cost

   Estimated Cost
Article 8- The Contracting Entity determines the estimated cost of the consultancy services, which constitute the subject matter of the procurement, according to the principles and procedures set forth in this Regulation before holding the procurement.

The Contracting Entities shall ascertain whether the estimated cost of the services procurement, which constitutes the subject matter of the procurement, is below the threshold value of the procurement or not.

The estimated cost shall be determined on actual basis through detailed amount and price inquiry as per the principles and procedures set forth in this Regulation and indicated in an estimation schedule with the justifications thereto.

The estimated cost ascertained by the contracting entities before the procurement shall not be announced and released to the tenderers or other persons that do not have an official relation with the procurement process.

Prices taken as basis in the calculation of estimated cost
Article 9- In determination of estimated cost;
a) Prices determined by the public authorities and institutions according to the nature of services to be procured;
b) Prices and rates in identical or similar services realized by the contracting entity or other administrations;
c) Prices determined by the relevant chambers of professions;
d) If the prices concerning the items constituting the service, which is the subject matter of the procurement, cannot be determined as per paragraphs (a), (b) and (c), the prices determined by taking the average of the price offers received in relation to such service within the scope of a price inquiry or the prices found through inquiry from the specialists and experts in their respective fields shall be taken as basis.

Furthermore, other price inquiries shall be carried out and taken into consideration in calculations that may be required and that are possible to be reached and obtained though not specified hereinabove according to the nature of consultancy services.

The contracting entities may use the prices set forth in paragraphs (a), (b) and (c) without any order of priority in the calculation of estimated cost.

The prices found by comparing the prices in the similar works completed in previous years with the market prices or the prices inquired from the public and private sector organizations and physical bodies with evidenced expertise and experience in similar services can be used.

In cases where it is understood that the price cannot be determined in spite of any inquiry or the prices determined do not reflect the market values, the prices shall be determined discretionally by the contracting entity and the causes thereto shall be indicated separately.

The criteria for determination of price
Article 10- The following criteria shall be applicable for the efforts to determine the price by the contracting entities:
a) (Amended: 08/06/2004 – 25486 Official Gazette / Article 3) The work group, item or detailed specifications and standard of the material, for which the price shall be determined, shall be included in the letter submitted to the persons and organizations that are given price inquiry during the efforts for price inquiry; and applications shall be submitted to the persons and organizations, from which the price quotation is requested, through the letters containing the foregoing, and the prices shall be requested except for the value added tax. The price quotations and proforma invoices that do not meet the requirements specified or that are deemed not to reflect the actual market values shall not be taken into consideration and the related reasons shall be indicated in the estimated cost schedule.

b) The prices received for the item or work group at different dates in relation to the service to be procured shall be updated over the monthly TEFE (Wholesale Prices Monthly Index Bulletin Table-2/ Total of line "General" in section Wholesale Prices Index Numbers) published by the State Statistics Institute for each item or work group as of the date when the approximate cost is determined.

   c) While calculating the estimated cost, considering of whether the price difference shall be paid or not, the prices on the date when the estimated cost is determined in respect of the works subject to the payment of price difference, and the prices calculated in view of the price differences that may arise during the term of services to be rendered in respect of the works not subject to the payment of price difference have to be taken as basis.

   Schedule of calculation of estimated cost
   Article 11- A schedule of calculation shall be prepared and signed by those that prepare such schedule including the estimated number of personnel to be employed by the consultant and the duration of employment of such personnel and the estimated material, equipment and other cost items according to the nature of work.
   a) In the procurements where the tenders are received over the unit price, a schedule shall be drawn up by the contracting entity to indicate the quantity and conditions of realization of each item. In this schedule, the description, unit price, the costs included in such price, unit of measure and other matters of each item shall be indicated. The costs included in the unit price shall be prepared to show all matters concerning one item and the other expenses not included in such item shall not be indicated.
   b) In the procurements where the tenders are received over the lump sum value, a schedule shall be drawn upon for realization of work. In this schedule, the total sum of amounts determined for personnel wages, materials, equipment and other costs shall be indicated.

Calculation of estimated cost
Article 12- Total grand amount found by summing the amounts for each work group found as a result of multiplying the items necessary to perform the consultancy services with the prices determined according to the provisions of this Regulation shall be calculated exclusive of value added tax and the estimated cost shall be calculated by adding the equivalent of the profits and general expenses in view of the nature of the work to the amount found in this way. The related estimation schedule shall be submitted to the contracting officer with the certificate of approval annexed after signing by those that prepare such schedule.


Calculation of estimated cost in case the material is supplied by the contracting entity
   Article 13- In the event that the materials and equipment are supplied by the contracting entity in the procurement of work, the estimated cost shall be determined on the basis of labor or other expenses without inclusion of the prices of the materials and equipment supplied, and the list of materials to be provided by the contracting entity shall be attached to the estimated cost schedule.

   Use and updating of estimated cost for the budgeting
Article 14- Since the procurements cannot be held for the works without any appropriation, the contracting entities shall determine the estimated cost for each work, which constitutes the subject matter of the procurement, while programming the budgets. The value added tax shall be included in the amount of estimated cost as per the pertinent legislation in determining the amount payable.

In view of the fact that the estimated cost determined may not maintain its validity until the first notice date of the procurement as from the date of determination, such costs shall be updated by the contracting entities, where necessary, over the related indexes released by the State Statistics Institute in relation to the components comprising the service.

Assignment of consultancy service providers for determination of estimated cost
       Article 15- If the personnel employed by the contracting entity is not at sufficient qualification or number as per the laws, ordinances and regulations, the service for determination of the estimated cost may also be rendered through tendering the same to the consultancy service providers with the approval of the contracting officer. In such a case, the service provider who has determined the estimated cost may not participate in the tender which is to be the subject matter of the consultancy service procurement.


SECTION THREE
Tender and Prequalification Document

Content of Tender and Prequalification Document
Article 16- The tender document to be prepared by the contracting entities shall include the administrative specification and the draft contract containing the instructions to tenderers, and in cases where it is deemed necessary, a technical specification indicating the technical details and requirements of the services to be procured and other necessary documents and information.

The prequalification document shall contain the requirements for the candidates, prequalification criteria, and other necessary documents and information.

   Preparation of tender and prequalification document
Article 17- (Amended: 08/06/2004 – 25486 Official Gazette / Article 4) The contracting entity shall prepare the document necessary to procure the services needed on the basis of the standard tender document released by the Public Procurement Authority and approve each page. It is compulsory for the contracting entities to store this original copy to be used for preparation of the document to be submitted to the candidates or tenderers in the procurement proceedings dossier. Where necessary, the tender and/or prequalification document to be submitted to the candidates or tenderers may be transferred to the "compact disc (CD)" provided that necessary safety precautions are taken within the framework of the principles defined by the Public Procurement Authority.

The following documents attached to this Regulation hereby shall be taken as basis according to the procurement procedure determined in preparation of the tender document by the contracting entities;
a) Standard Forms (Annex: 1);
b) Standard Prequalification Specification for the Consultancy Services Procurements (Annex: 2);
c) Standard Administrative Specification for the Consultancy Services Procurements (Annex: 3);
d) Standard Contract for Consultancy Services Procurements (Annex: 4);
and other legislation enacted by the Public Procurement Authority.

It is compulsory to prepare the tender or prequalification document in Turkish. However, in the procurements that are open to the foreign tenderers, the document may be prepared in other languages besides Turkish. The document prepared in the foreign language may be handed over with the document prepared in Turkish to the candidate or tenderer that makes such a request. In this case, the Turkish text shall supersede in understanding and interpreting the document as well as the settlement of disputes that may arise between the contracting entity and candidates or tenderers.

Administrative Specifications
Article 18- The contracting entities shall prepare the administrative specification on the basis of the "Standard Administrative Specification for the Consultancy Services Procurements" annexed to this Regulation hereby. The matters that are left blank for filling and provided in the footnotes in the Standard Administrative Specifications shall be governed in a way that is not contrary to the provisions set forth in the Public Procurement Law No:4734, Public Procurement Contracts Law No:4735 and the other legislation according to the nature of work.

Furthermore, the contracting entities may govern the matters in items that are not provided in the Standard Administrative Specifications and that are needed to be governed according to the nature of work in view of the requirements of services, which constitute the subject matter of the procurement, and in a way that is not contrary to the provisions set forth in Laws No:4734 and 4735 and the pertinent legislation as well as the regulations, communiqués and other regulating proceedings passed by the Public Procurement Authority, and incorporate the same in the section "VI- Miscellaneous".

Prequalification Specifications
Article 19- The contracting entities shall prepare the prequalification specifications on the basis of "Standard Prequalification Specification for the Consultancy Services Procurements" annexed to this Regulation hereby. The matters that are left blank for filling and provided in the footnotes in the Standard Administrative Specifications shall be governed in a way that is not contrary to the provisions set forth in the Laws No:4734 and No:4735 and the other legislation according to the nature of work.

   Furthermore, the contracting entities may govern the matters in items that are not provided in the Standard Prequalification Specifications and that are needed to be governed according to the nature of work in view of the requirements of services procurement, which constitute the subject matter of the procurement, and in a way that is not contrary to the provisions set forth in Laws No:4734 and 4735 and the pertinent legislation as well as the regulations, communiqués and other regulating proceedings passed by the Public Procurement Authority, and incorporate the same in the section "IV- Miscellaneous".
   Technical Specifications
Article 20- If necessary, a technical specification indicating the technical details and requirements of the services to be procured shall be prepared and included in the tender document. It is essential that the technical criteria set forth in the technical specifications to be prepared by the contracting entities ensure productivity and functionality, and do not contain the matters hindering competition, and provide equal opportunity for all tenderers.

In the technical specifications, the arrangements shall be made to ensure compliance with the national and/or international technical standards, if any. These specifications shall include the technical properties and descriptions. A specific trademark, model, patent, origin, source or product may not be specified and properties and descriptions may not be indicated for a specific trademark or model. However, in cases where there are not the national and/or international technical standards or it is not possible to determine the technical properties, the trademark or model may be specified provided that the expression "or equivalent" is included.

It is essential that the technical specifications specifying any kind of properties of the services, which constitute the subject matter of the procurement, are prepared by the contracting entities. However, the technical specifications may be got prepared through the procurement in compliance with the provisions of Law No:4734 provided that it is approved by the contracting officer that it is not possible for the contracting entities to prepare them owing to the nature of the services to be procured.

Contracts
Article 21- The contracting entities shall take the "Standard Contract for Consultancy Services Procurements" as basis annexed to this Regulation in preparing the draft contract within the scope of the tender document.

The matters that are left blank for filling and provided in the footnotes in the Standard Contract shall be governed in a way that is not contrary to the provisions set forth in the Laws No:4734 and No:4735 and the other legislation according to the type of contract (lump sum/ unit price).

Furthermore, in cases where there are not provisions in the Standard Contract, the arrangements may be made in items under section "Miscellaneous" in the Standard Contract to be prepared by the contracting entity provided that it is not contrary to the legal rules and the tender document.

SECTION FOUR
Taking Approval for Procurement,
Tender Commission and Procurement Proceedings Dossier

Taking Approval for Procurement
Article 22- The estimation schedule concerning the estimated cost issued by the contracting entities as well as the draft contract and other documents prepared in relation to the work to be procured shall be annexed to procurement approval certificate (standard form KIK001.0/D) and this approval certificate shall be approved by the contracting officer.

After taking the approval for procurement by the contracting entities, the procurement register number shall be obtained from the Authority prior to the procurement notice.
Formation of tender commission and principles of activity
Article 23- (Amended: 08/06/2004 – 25486 Official Gazette / Article 5) The contracting officer shall form the tender commission within three days at the latest following the date of first notice as per Article 6 of Law No:4734 to hold the procurement. The tender commission shall be formed with the primary members of minimum five persons of odd number including minimum four persons from the contracting entity's personnel provided that one of them shall be the chairman and two of them shall be experts of the work, which constitutes the subject matter of the procurement, and the financial officer in the general and added budget entities, and one personnel in charge of accountancy or financial affairs in the other entities in view of the fact the commission will convene with all members completely, and the reserve members with the same qualifications for substitution of such members by indicating their names. If there is not sufficient number and qualification of personnel at the contracting entity holding the procurement, the members may be taken to the commission from the contracting entities within the scope of this Law.

All evaluations in the procurement process shall be made by the tender commission without forming the commissions under other titles apart from the tender commission.

The tender commission shall convene with all members being present and the resolutions shall be taken with the majority of votes. The members of the commission may not act as absentee in the resolutions. The chairman and members of the commission are responsible for the votes and resolutions, and the members of commission that vote against a resolution shall be liable to write and sign the reasons thereof under the resolution of the commission. The resolutions taken and the minutes issued by the tender commission shall be signed by indicating the names, surnames and titles of the chairman and members of the commission.

Procurement proceedings dossier
Article 24- The contracting entity shall issue a proceedings dossier for each work to be procured. This dossier shall contain all documents related to the procurement process such as the certificate of approval and the annexed estimated cost schedule, tender document, and the notice texts if made, the applications or tenders submitted by the candidates or tenderers and the notification and receipt documents concerning the notifications made to the candidates and tenderers, and the minutes and resolutions of the tender commission and the original copy of the receipt evidencing that the contribution fee of the Authority to be calculated by the contractor over such price if the contract price exceeds the amount set forth in sub-paragraph (1) of paragraph (j) of Article 53 of Law No:4734 has been deposited to the bank account of the Public Procurement Authority.

Each copy of the procurement proceedings dossier shall be given to the members of the tender commission by the contracting entity within three days following the date of notice in order to enable them to conduct the necessary investigation.


SECTION FIVE
Rules for Notice, Matters Concerning the Tender and Prequalification Document

Tender Notice
Article 25- (Amended: 08/06/2004 – 25486 Official Gazette / Article 6) The prequalification notices concerning the consultancy services procurements shall be made according to the following principles by providing sufficient time to enable all tenderers to prepare their tenders:
a) In respect of the procurements, the estimated cost of which is equal to or exceeding the threshold values set forth in Article 8 of Law No:4734, the notices of prequalification shall be published in the Public Procurement Bulletin at least fourteen days prior to the deadline date of application for prequalification;
b) In respect of the procurements, the estimated cost of which is below the threshold values set forth in Article 8 of Law No:4734,
1) Those, the estimated cost of which is at the amount set forth in sub-paragraph (1) of paragraph (b) of Article 13 of Law No:4734, shall be proclaimed in at least two of the newspapers published at the place of procurement and work at least seven days prior to the deadline date of application for prequalification;
2) Those, the estimated cost of which is over the amount set forth in sub-paragraph (1) of paragraph (b) of Article 13 of Law No:4734, shall be proclaimed in the Public Procurement Bulletin and one newspaper published at the place of work
provided that they are published in the Public Procurement Bulletin once.

The procurements meeting the qualities defined by the Authority shall also be announced in one of the newspapers with circulation throughout Turkey through the Press Announcement Authority.

If any newspaper is not published at the place of procurement or work, the notice shall be made through the letters affixed on the billboards in the buildings of the relevant contracting entity, government and municipality and the municipal means of publication at the place where any newspaper is not published within the same periods. These proceedings are evidences through minutes.

The contracting entity may also proclaim the procurements through the international notices or other local newspapers published or means of press, information processing network or electronic communication (Internet) according to the importance and nature of the work in addition to the compulsory notices mentioned above. However, in case of international notice, twelve days shall be added to the minimum periods of notice mentioned above.

The date when the notice is published shall be taken as basis in calculation of the notice periods, and the deadline date of application for prequalification shall not be taken into account. Subject to the notice periods set forth in this article, it is compulsory to send the notice texts at sufficient period in advance to the places where the notice is intended to be made in view of the duration that may elapse until the actual notice.

If the date determined for the prequalification is a holiday, the prequalification shall be held at the same place and time on the next business day without necessity for a notice again and the applications submitted until such time shall be accepted. The time of prequalification shall be determined in view of the working hours. Even if the working hours change after the notice, the prequalification shall be held at the time proclaimed.

   Arrangement of notices for prequalification
Article 26- (Amended: 08/06/2004 – 25486 Official Gazette / Article 7) The notices for procurements shall be prepared in compliance with the standard prequalification notice form on the basis of the information included in the prequalification and tender document (Standard Form KIK003.0/D).

The arrangements to the information given in the notices for prequalification as well as the documents comprising the tender or prequalification documents have to be in consistent with each other.

The matters not specified in the tender and prequalification document shall not be included in the notices.

Non-compliance of notice
Article 27- The notices that are not in compliance with the provisions set forth in Articles 25 and 26 of this Regulation hereby shall be invalid. In this case, the procurement or prequalification cannot be made unless the notice is renewed in compliance with such articles.

However, except for the failure to make the notice set forth in Article 25 of this Regulation or the failure to comply with the notice periods, if it is understood that the notices are not in compliance with the provisions set out under Article 26, prequalification can be made by issuing a correction notice for the faulty matters within ten (10) days following the publication of the notices. In this case, it shall be ensured that the correction notice is published in the same format with the means of publication where the notice, which constitutes the subject matter of such correction, is published.

Review on and purchasing the tender and prequalification document
Article 28- (Amended: 08/06/2004 – 25486 Official Gazette / Article 8) The prequalification document and tender document, which are prepared and each page of which is approved by the contracting entity, can be reviewed free of charge at the address specified in the notice of the contracting entity by the candidates or tenderers. It is compulsory that the candidates or tenderers that intend to participate in prequalification purchase the copies of such document, each page of which is approved by the contracting entity. The candidates that purchase the prequalification document shall be recorded in the standard form KIK005.0/D. The tender document shall be sent to all candidates that are found qualified and short listed as a result of prequalification.
The copies of the tender and/or prequalification document copied to the "compact disc (CD)" may be sold to the candidates and tenderers provided that the contracting entity takes the necessary security precautions within the framework of the principles defined by the Public Procurement Authority.

It is essential that the document is sold against the cost not exceeding the cost of printing and not hindering competition, and the right of selling such document is solely owned by the contracting entity. The minutes containing the documents and information for determining the cost of printing the document shall be issued and stored in the procurement proceedings dossier. The contracting entity may not claim any additional fee whatsoever under the title of donation, aid or other titles against selling the documents, and may not claim depositing money to the bodies such as foundations, funds, associations and unions except for the budget of the amount of tender document.

Amendment to and clarification in the tender and prequalification document
Article 29- It is essential that any amendment is not made to the tender and prequalification document after the procurement is held. If it becomes compulsory to make such amendment, the reasons and requirements to this effect shall be ascertained through a minute and the previous notices shall be void, and the work shall be proclaimed again in the same manner.
However, if the substantial or technical mistakes or defects are determined by the contracting entity or notified in writing by the tenderers or candidates to the extent to affect the preparation of tenders and applications, amendments can be made to the tender and/or prequalification document by issuing an addendum. The addendum concerning such amendments shall be submitted to all those that have purchased the prequalification document or invited to the procurement after being short listed via registered & prepaid mail in writing or delivered personally against signature so that they are informed of the same at least ten (10) days prior to the deadline date of submitting tenders or deadline date of application.

If an additional duration is needed to prepare the tenders or applications owing to such amendment, the deadline date of submitting tenders or deadline date of application for prequalification may be extended for maximum twenty (20) days by virtue of an addendum only once. In case of issuing an addendum, the tenderers or candidates that have already submitted their tenders or made their applications shall be given the opportunity to withdraw their tenders or applications and submit their tenders or make their applications again.

In respect of the matters that are needed to be clarified in the tender or prequalification document during the application for prequalification or submitting tenders, the candidates or tenderers may request clarification in writing until twenty (20) days prior to the deadline date for application or submitting tenders. The requests for clarification after such date shall not be taken into consideration.

If such request for clarification is approved by the contracting entity, the clarification to be made by the contracting entity shall be submitted to all those that have purchased the prequalification document until such date or the ones that are sent the "letter of invitation to tender" after being short listed via registered & prepaid mail in writing or delivered personally against signature. Such written clarification by the contracting entity shall be made so that all candidates or tenderers are informed of the same at least ten (10) days prior to the deadline date of submitting tenders or deadline date of application. The clarification shall contain the description of the problem and the detailed answers of the contracting entity, however, the identity of the candidate or tenderer that requests for clarification shall not be released. The written clarifications shall be given together with the tender and prequalification document to those that purchase the tender or prequalification document after such clarification.

Cancellation of procurement prior to the time of procurement
Article 30- In cases deemed necessary by the contracting entity or in cases where the matters that hinder holding the procurement in the documents comprising the tender document and that are not possible to be corrected, the procurement may be cancelled prior to the time of procurement.

In this case, cancellation of the procurement shall be immediately notified to the tenderers by indicating the reason of such cancellation. Cancellation of the procurement shall be notified separately to those that have already submitted tenders until such stage. If the procurement is cancelled, all tenders submitted shall be deemed rejected and such tenders shall be returned to the tenderers without opening the same. Any right may not be claimed against the contracting entity on the grounds of cancellation of the procurement.

In the event of cancellation of the procurement, the reasons for such cancellation shall be reviewed so that the procurement may be held again.

CHAPTER TWO
Qualification for Participation in Procurement

SECTION ONE
General Provisions

Principles for determination of qualification
Article 31- Any information, certificate, document and evaluation criteria required by the contracting entities in order the evaluate the economic and financial as well as professional and technical qualifications of the tenderers may not be determined to result in hindering the competition. Furthermore, the criteria applicable for evaluation of qualification shall be to the extent to measure the degree of said services being rendered by the tenderer according to the nature of the work, which constitutes the subject matter of the procurement.

(Amended: 08/06/2004 – 25486 Official Gazette / Article 9) It is essential that those required for evaluation of qualification among the information and/or documents set forth under this Regulation hereby and the qualification criteria required in these documents are mentioned in the prequalification document and the notice concerning the prequalification according to the nature of the services, which constitute the subject matter of the procurement.

(Amended: 08/06/2004 – 25486 Official Gazette / Article 9) The joint venture being qualified shall not be construed as each of the partner or members being qualified separately, and if the joint venture being qualified as a result of evaluation for prequalification disintegrates prior to the procurement, the letter of invitation shall be deemed invalid.

In the procurements where partial tenders are allowed in the tender document, if the tenderers submit tenders for a part of the services, the evaluation on the documents concerning the economic and financial as well as professional and technical qualifications shall be made in respect of the parts, for which the tender is submitted.

   Documents Required
   Article 32- The documents required for evaluation of economic and financial as well as professional and technical qualification of the tenderer under this Regulation:

a) The documents evidencing that the tenderer continues his professional activities and is authorized to submit tenders;
b) The documents concerning the organizational chart of the tenderer and evidencing that he employs or will employ sufficient number and qualification of personnel in order to perform the work, which is the subject matter of procurement;
c) The documents indicating the experience of the tenderer in the work, which constitutes the subject matter of the procurement, or similar works;
d) The documents indicating the education and professional skills of the tenderer, executive staff and the technical staff that will perform the work;
e) The documents concerning the financial status of the tenderer as obtained by banks;
f) The balance sheet or parts of the balance sheet deemed necessary and which are compulsory to be released as per the pertinent legislation, or if not any, the equivalent certificates;
g) The documents indicating the business volume and total turnover of the tenderer within the last two years as well as the quantity of works undergoing and completed in relation to the work, which is the subject matter of the procurement.

   Besides the documents listed hereinabove, it shall be determined by the related contracting entity on which of the other documents set forth in Article 10 of Law No:4734 shall be required and used in evaluation of qualification in compliance with the nature of the work, which constitutes the subject matter of the procurement, and within the framework of the principles provided under this Regulation.

If a new type of consultancy services, which shall be rendered for the first time, arises, the work experience may not be required in the services procurements where the competitive conditions shall not arise since there are not sufficient tenderers that have rendered such service before.

Submission of Documents
Article 33- (Amended: 08/06/2004 – 25486 Official Gazette / Article 10) The contracting entities shall require the originals or the copies duly certified by the notaries in implementation of this Regulation. The candidates or tenderers may also attach the copies of the documents affixed with "the original seen by the contracting entity" or any expression with the similar meaning and the originals returned to them by the contracting entity prior to the prequalification or procurement in lieu of the original documents to their tenders or applications. Such applications of the candidates or tenderers have to be met by the authorized personnel of the contracting entity before the procurement.

The notarized documents have to bear an expression indicating that the documents are true copies, otherwise the ones certified pursuant to the photocopies and the ones bearing "identical with the one submitted" or any similar meaning shall not be deemed valid.

The originals of the notarized work experience certificates submitted within the scope of the tender shall be submitted to the contracting entity before concluding the contract by the tenderer who has been awarded.

The documents obtained from the foreign countries and submitted by the domestic or foreign tenderers have to be issued according to the legislation of the respective country and approved by the Consulate of the Republic of Turkey in the country where it is issued or the Turkish Ministry of Foreign Affairs. However, the documents mentioned in the tender document and the official documents issued from the countries that are party to the Convention on Abolishing the Obligation to Certify Foreign Official Documents and included within the scope of Article 1 of this convention shall be exempted from the approval of the Consulate of the Republic of Turkey in the country where it is issued or the Turkish Ministry of Foreign Affairs provided that they bear the "Apostille" seal. Provided that there is an agreement or convention containing provisions that require certain proceedings in respect of certifying the signature, seal or stamp on the documents between the Republic of Turkey and any other state or states, the approval of documents issued from such countries shall be subject to the provisions of this agreement or convention. Provided that the Turkish translations of the documents are required by the contracting entities, translations of official documents issued abroad as well as the documents listed in the tender document by the contracting entity have to be approved by the Consulate of the Republic of Turkey or the Turkish Ministry of Foreign Affairs. Translations of documents that bear the seal of Apostille as well as the translations of documents that are not required to be approved by the Consulate of the Republic of Turkey or the Turkish Ministry of Foreign Affairs have to be rendered by the sworn translators and notarized.

The documents and translations thereof issued by the certification bodies accredited by the national accreditation bodies included in the International Accreditation Forum for Mutual Recognition Agreement shall be exempted from the approval by the Consulate of the Republic of Turkey in the country where it is issued or the Turkish Ministry of Foreign Affairs provided that it is confirmed with a letter obtained from the Turkish Accreditation Authority that such bodies have been duly accredited according to the international rules.

The contracting entities may communicate with the Chamber of Profession, which the tenderers acting abroad are registered in the trade registers, about the status of tenderers and the trade register (if the tenderer is a company, its incorporation and shareholders), and may assign the organizations specialized in this issue to conduct inquiry abroad for determination of the reliability of the tenderer.

The contracting entities shall evaluate the documents containing monetary values concerning the economic and financial as well as professional and technical qualification by converting such values to the currency taken as basis for evaluation of tenders over the foreign exchange buying rate published by the Central Bank of the Republic of Turkey on the date of first notice or invitation, and over the foreign exchange cross-rates in cases where the tenders may be submitted in foreign currencies.

The foreign tenderers shall submit the equivalent documents to the ones required in the tender document as per the legislation applicable in their respective countries. If there is not the equivalent of or it is not possible to issue the documents listed under sub-paragraphs (a), (b), (c), (d), (e) and (g) of the last paragraph of Article 10 of Law No:4734 as per their respective legislation, they shall submit written declarations to this effect. However, this has to be confirmed by the mission offices in Turkey of the country of the nationality of the foreign tenderer, who is a real person, or the country where the principal office of the foreign tenderer, who is a legal person, or the mission offices of the Republic of Turkey in such countries.

SECTION TWO
Documents Concerning the Economic and Financial Qualification

Documents Obtained From the Banks
Article 34- In the consultancy services procurements, the tenderers have to submit the documents obtained from the domestic or foreign banks showing their unused cash facility or unused guarantee letter facility in the banks at an amount to be determined by the tenderers, but not less than 5 %, and more than 20% of the bid price (standard form KIK034.1/D).

(Amended: 08/06/2004 – 25486 Official Gazette / Article 11) Where necessary, these documents shall be confirmed from the general directorate and branch office of the related bank by the contracting entity. The confirmations via fax have to bear the signatures of at least two officials.

In case of joint ventures, these documents can be provided jointly irrespective of the shares of the partners.

Balance sheets or equivalent documents of tenderer
Article 35- In the consultancy services procurements, the tenderer has to submit the end-of-year balance sheet for the year prior the year when the procurement is held or the parts of the balance sheet deemed necessary, otherwise the equivalent documents.
   The tenderer has to ensure the following:
   a) The current ratio showing whether the tenderer has the necessary liquidity and the power to cover debts in short term (one year) for providing the cash flow in certain periods (current assets / short term liabilities) must be minimum 0.50 (in the calculation, the contract progress costs shall be deducted from the current assets and the contract progress incomes shall be deducted from the short term liabilities);
   b) The equity ratio showing the extent of shareholders' equity within the assets (shareholders' equity / total assets) must be minimum 0.10 (in the calculation, the contract progress costs shall be deducted from the current assets and the contract progress incomes shall be deducted from the short term liabilities);
   c) Ratio of short term bank liabilities to the shareholders' equity must be less than 0.75.

The items indicated hereinabove are accepted as qualification criteria and all of these three criteria must be complied with at the same time. (Annex: 08/06/2004 – 25486 Official Gazette / Article 12) In the balance sheets submitted, it is compulsory to indicate the contract progress costs and the contract progress incomes.

   The tenderers who can not meet these requirements in the preceding year may submit their certificates for up to the last two years, and in this case, it shall be checked whether the minimum values are met based on the average of the last two years, for which the certificates are submitted.

The balance sheets or the parts of the balance sheets that are deemed necessary must be issued pursuant to the relevant legislation and approved by the certified financial consultant or independent accountant & financial consultant or the tax office.

   The tenderers who do not present their balance sheets that are not compulsory to be issued or their parts may evidence their compliance with the criteria indicated hereinabove with certificates approved by the certified financial consultant or independent accountant & financial consultant.

   In accordance with the values shown in the self-employment income ledger prepared and approved in accordance with the relevant legislation to be submitted by the self – employed, the previous year value of total income / total expense must be minimum (1,25). In this case, the ratios to be calculated basing on the balance sheets or their necessary parts shall not be taken into consideration.

   In case the tenderer is a joint venture, each of the tenderers has to submit the requested documents separately and each of the partners must comply with the requirements indicated in paragraphs (a), (b) and (c). But in cases where the share of the pilot firm is more than 50%, compliance of the pilot company solely with these requirements shall be satisfactory.

Documents indicating the business volume of tenderer
   Article 36- In the consultancy services procurements, the contracting entities shall require and the tenderers shall submit the income statement showing the total turnover of the tenderer for the last two years before the year, in which the prequalification is held, and the documents showing the amount of work undertaken and completed by the tenderer in relation to the work constituting the subject matter of the procurement. In respect of the self – employed tenderers, these cases can be documented by virtue of the extract of free–employment income ledger.

In the calculation of the amount of works undergoing and completed in the income statement showing the turnover and concerning the work, the total of the incomes obtained from the works of the tenderer either within or out of the country shall be taken into consideration.

   In evaluation of these documents, the average values,
   a) have to be in the range of minimum 10- 20% of the estimated cost for the total turnover,
   b) have to be in the range of minimum 8- 15% of the estimated cost for the incomes of works undergoing and completed in relation to the work, which constitutes the subject matter of procurement,
   provided that it is not less than the amount to be defined by the contracting entity as a condition for prequalification.

   The submitted income statement and the documents showing the incomes relating to the amount of work undertaken and completed concerning the determination of qualification for the services, which constitute the subject matter of the procurement, have to be approved by the certified financial consultant, independent accountant & financial consultant or the tax office.

   In the assessment of the works undertaken by the tenderer, the condition of performing the work under a contract in the private or public sector shall be required.

The amount of the Works completed by the Tenderer in a joint venture shall be taken into consideration in proportion with his share in such joint venture.

   (Amended: 08/06/2004 – 25486 Official Gazette / Article 13) In respect of the joint ventures, the pilot partner and the other partners shall be liable to meet the minimum qualification criteria in proportion to their shares in such joint venture as the total turnover or income of the services, which constitute the subject matter of the procurement.

   (Amended: 08/06/2004 – 25486 Official Gazette / Article 13) Each of the joint venture partners has to submit the documents required separately.
   
(Amended: 08/06/2004 – 25486 Official Gazette / Article 13) The total annual turnover or incomes from the work, which constitutes the subject matter of the procurement, from the income statement shall be updated over the monthly TEFE (Table 2: Index in line "General") published by the State Statistics Institute as of June 30th of the year when the income is obtained (the index in June published in the subsequent month shall be taken as basis), and the contract progress incomes shall be updated as of the date of first notice or invitation (the index of the previous month published in the month including the date of first notice or invitation for the procurement shall be taken as basis) for the procurement over the monthly TEFE (Table 2: Index in line "General") as from the date of accrual of the progress payment (the index of the previous month published in the month including the date of accrual of the progress payment shall be taken as basis).

SECTION THREE
Documents Concerning Professional and Technical Qualification

   Documents indicating that the tenderer is currently acting and is authorized to submit tenders
Article 37- The following documents shall be required from the tenderers in the consultancy services procurements to be held by the contracting entities under this Regulation:
a) In the event that the tenderer is a real person, the certificate received within the year when the first announcement with regard to the procurement is made and indicating registration to the Chamber of Commerce and/or Industry or Profession,
b) In the event that the tenderer is a legal person, the certificate received from the registered Chamber of Commerce and/or Industry within the year when the first announcement with regard to the procurement is made and indicating the registration of the legal person,
c) Signature statement certified by the notary public in the event that the tenderer is a real person,
d) Original or notarized copy of Trade Registers Gazette indicating the shares of the shareholders of the company and their position within the company or the documents evidencing such issues as well as the signature circular of the legal person certified by the notary public in the event that the tenderer is a legal person.
e) (Annex: 08/06/2004 – 25486 Official Gazette / Article 14) Declaration concerning the personal companies that the tenderer is shareholder of and the capital companies that the tenderer holds more than half of the capital according to the nature of tenderer being a real person or legal person (Standard Form KIK 029.4/D).

In the event of participation in the procurement by proxy, the power of attorney vesting power to the person participating on behalf of the tenderer and the notarized signature statement of such person participating by proxy shall be required.

(Amended: 08/06/2004 – 25486 Official Gazette / Article 14) In the case of joint ventures, besides the joint venture statement (Standard Form KIK 030.0/D), the physical or corporate bodies that constitute the joint venture shall be liable to submit the documents listed under items (a), (b), (c), (d) and (e) separately.

Work Experience Certificates
Article 38- It is compulsory to require the certificates indicating the work experience concerning the work, which constitutes the subject matter of procurement, or similar works, which have been accepted perfect by the contracting entity, as realized by the tenderer by minimum 70% of the contract amount or supervised or managed by minimum 50% for the services concerning construction for the public or private sector at home or abroad within the last five years.

The tenderer shall be required to submit the work experience certificate concerning one single contract for the services, which constitute the subject matter of procurement, or similar services at a percentage to be determined by the contracting entity, but not less than 25% and not more than 50% of the price proposed by the tenderer.

(Amended: 08/06/2004 – 25486 Official Gazette / Article 15) In the case of joint ventures, the pilot partner has to meet minimum 70%, and each of the other partners has to meet minimum 10% of the amount of the minimum work experience required. However, the sum of amount of work experience of the other partner or partners may not be less than 30% of the minimum amount of work experience.

The certificates indicating the work experience refers to the work completion certificate, work status certificate, work supervision and work management certificate demonstrating the experience of the tenderer in the work, which constitutes the subject matter of the procurement, or similar works, and that are issued and evaluated according to the principles and procedures set forth in this Regulation hereby.

Similar works to be evaluated for the work experience refer to the services that are similar to the services, which constitute the subject matter of procurement, or the portions of services in respect of quality and size, and that are performed using the same or similar procedures, and that have similar qualities with respect to the plants, equipment, financial power, expertise, personnel and organization requirements.

In compliance with the principles set forth in the definitions, the contracting entities shall determine which work or works are accepted as similar works and specify them in the prequalification document as well as the notice concerning the prequalification.

If a new type of consultancy service, which shall be rendered for the first time, arises, the contracting entities may not require work experience in the services procurements where the conditions of competition shall not be created since there are sufficient tenderers, who have rendered such service before.

The tender commissions shall perform the evaluations for prequalification in respect of whether the certificates submitted as work experience are similar to the work, which constitutes the subject matter of procurement, and the minimum amount stipulated according to the principles set forth in this Regulation.

Documents concerning the organizational structure and personnel of tenderer
Article 39- (Amended: 08/06/2004 – 25486 Official Gazette / Article 16) In order to be able to determine the professional and technical qualification of the tenderer in the consultancy services procurements, the documents concerning the organizational structure of the tenderer and evidencing that the tenderer employs or will employ the personnel at the number and quality required by the contracting entity in order to perform the work, which constitutes the subject matter of procurement, have to be required.

If key technical personnel are stipulated as the minimum qualification criteria, it is compulsory to require that such personnel are specialized and experienced in the consultancy services, which constitute the subject matter of procurement, and working within the organization of tenderer.

The period of experience in the private sector shall be evidenced with the certificate of membership issued by the relevant chamber of profession, and the period of experience in the public sector shall be evidenced with the schedule of service and/or certificate of membership to the chamber of profession, and employment within the organization of tenderer shall be evidenced with the certificates approved by the social security authority indicating that the premiums have been paid for the personnel or the personnel have been employed.

The certificate for employment within the organization of the tenderer shall not be required from the tenderers with the capacity of physical bodies, partners of the personal companies, the shareholders acting as directors in the limited companies, the shareholders acting as the chairmen of board of directors, members of board of directors, executive directors and general directors of joint-stock companies, and in the event of joint ventures, the partners acting as the physical bodies and the partners with the capacity of corporate bodies acting as the partners with the capacity of physical bodies listed above.

All the key personnel for the pilot and other partners shall be evaluated irrespective of the percentage of partnership in the joint ventures.
Documents concerning the machinery and other equipment
Article 40- The contracting entity may require the information and documents concerning the machinery, computers, plants, tools and other equipment deemed necessary in order to render the services, which constitute the subject matter of procurement, and establish the related minimum criteria for qualification.

There is not any requirement of being the own product with respect to the machinery, computers, plants, tools and equipment.

However, the machinery, computers, plants, tools and equipment, which are the own products of the tenderer, shall be evidenced by virtue of an invoice or notarized minutes of determination indicating that they are registered in the inventory or depreciation book, or the report of the certified financial consultant or independent accountant- financial consultant. In respect of the equipment that will b
#69
Regulation on Administrative Applications Against Procurements

Date of Official Gazette: 24/05/2004 
No of Official Gazette: 25471


SECTION ONE
General Provisions
Purpose and Scope
Article 1- This Regulation establishes the procedures and principles for investigation and resolution on the complaints that may be made by the candidates, tenderers or those than can be tenderers as well as other applications concerning the illegality claims and the implementation of the resolutions in respect of the procurements, which the Public Procurement Authority has the authority to investigate, in order to ensure compliance with the legislation concerning the procurements.
Basis
Article 2- This Regulation hereby has been enacted on the basis of Article 53 of Public Procurement Law #4734.
Definitions
Article 3- The following definitions shall have the meanings set opposite to them besides the definitions given under Article 4 of the Public Procurement Law #4734 in implementing this Regulation;
Law: Refers to the Public Procurement Law #4734;
Chairman: Refers to the Chairman of Public Procurement Authority;
Expert: Refers to the Group Heads and the Heads of Departments, who have the capacity of Public Procurement Expert or Expert, the Professional Personnel of the Authority employed by the Public Procurement Authority;

Reporter: Refers to the person(s) to be designated by the Contracting Officer among the public officers having the qualifications for such appointment in the tender commission as per Article 6 of Law #4734 according to the subject of the procurement or application in order to investigate through the complaint submitted to the Contract Entity;

Those that can be tenderers: Refer to the natural or legal bodies that act in the field of activity of the subject of procurement and that have purchased the bidding or pre-qualification documents;
Procurement process: Refers to the process that starts with the date when the procurement approval is given by the contracting officer and that is completed when the contract is signed by the contracting officer and the contractor and certified by a notary public, or in cases where certification by notary and registration are not required, when the contract is signed by the respective parties;

Procurement dossier: Refers to the procurement proceedings dossier defined under Article 7 of Law #4734 and the dossier that contains all administrative applications submitted with respect to the procurement as well as all transactions and proceedings performed upon such applications;


Final resolution: Refers to the Resolution of Board, which is taken at the end of the process stipulated in this Regulation upon the administrative applications in respect of the procurements, and which concludes such an application;
Day: Refers to the Calendar Day;
Business Day: Refers to the days except for the official holidays and the general public holidays;

Ways of Application
Article 4- The administrative applications to be made under the Law #4734 in against the procurement proceedings are as follows:
a) The complaint refers to the applications made to the contracting entity by the candidates, tenderers or those that can be tenderers in relation to the proceedings or actions within the procurement process.

b) Objecting complaint refers to the complaint applications that are submitted as complaints to the Authority by those that choose to complain to the Contracting Entity against the resolutions taken upon the application submitted to the Contracting Entity within the procurement process, or by other candidates, tenderers or those that can be tenderers, or those that choose to complain to the Contracting Entity if resolution is not taken in a timely manner.
c) Investigation through claims refers to the applications that are submitted to the Authority with the claims of contrary acts to the Law #4734 and the related legislative provisions in the procurements held by the Contracting Entities.
Those that have the capacity to complain may not claim for the investigation through the claims within the procurement process.
Capacity of Complainant
Article 5-
a) The candidates and tenderers, in relation to all proceedings and actions in the procurement process; and
b) Those that can be tenderers, only in relation to the matters provided in the procurement notice and the procurement and prequalification documents, and the conflicts between such matters and the administrative practices;
may choose to make complain if they claim that they have incurred a loss of right or damage, or they are likely to incur some damage.
Application Periods
Article 6- The duration of application to the Contracting Entity is 15 days as from the date when the proceeding or action, which is the subject matter of the complaint, is realized or that should be realized within the procurement process.
In cases where specific periods are not stipulated in the Law and this Regulation, the period of objecting compliant to the Authority is 15 days. This period shall commence from the notification of the resolution taken in relation to the complaint submitted to the contracting entity, or if such resolution is not taken within 30 days by the contracting entity, at the expiry of 30 days following the date of such complaint.
General Principles Regarding the Periods
Article 7- The periods start to elapse as from the date when the cases causing the notifications, announcements, notices or complaints are realized, or the date when they should be realized.

The holidays are included in periods. If the last day of a period is holiday, the period shall extend until the end of the business day following such holiday.
General Principles Regarding the Periods
Article 8- The applications shall be made by virtue of petitions written to the contracting entity or the Authority. The petitions shall include;
a) Name, surname or title and address of the applicants, agents or representatives;

b) The procurement, which is the subject matter of application;
c) The contracting entity holding the tender and its address;
d) The cases complained or claimed for investigation, the reasons and the evidences thereof;
e) The date when the case complained or claimed for investigation is realized or the date of notification, announcement or notice.

The date of notification of the resolution shall also be indicated and a copy of the resolution shall be attached to the application petition if the date of the complaint submitted to the contracting entity is specified besides the foregoing in respect of the objecting complaints to the Authority. Furthermore, the application fee at the amount stipulated under paragraph (j) of Article 53 of Law #4734 and updated by the Authority shall be deposited to the accounts of the Authority and the related evidencing document shall be attached to the petition.
It is compulsory to attach the documents evidencing the authority of representation as well as the original of the signature circular or the copies approved by the competent authorities to the complaint and objecting complaint petitions. In addition, the documents evidencing that the procurement document has been purchased or tender has been submitted for the procurement shall be attached to the complaint and objecting complaint petitions.
The applicant may attach all information and documents that are deemed to be related to his claim to the petition.
The same person may apply for complaint and objecting complaint with a single petition about multiple subjects concerning a single procurement. Even though there is a substantial or legal connection or reason- result relation between them, the complaint and objecting complaint application may not be made with a single petition concerning more then one procurement. More then one person may not apply to the same procurement with a single petition.
The Places Where the Petitions Will Be Submitted
Article 9- The petitions shall be submitted to the Contracting Entity holding the procurement in respect of the complaints raised to the contracting entity, and to the Authority in respect of the objecting complaints to the Authority.
If the place of domicile of the complainant is located abroad, the complaint and the objecting complaint petitions may be submitted to the Turkish Consulates.
Application to Other Places and Application Through Posting
Article 10- The applications made to the administrative units except for the places indicated under Article 9 must be sent to the related contracting entity or the Authority by such units.
In this case and in respect of the applications made through posting, the date when the application is registered by the related contracting entity or the Authority shall be assumed as the date of application.

Proceedings To be Made Upon Submittal of Petition
Article 11- The petition shall be immediately registered directly by the contracting entities receiving such an application and after the receipt of the document evidencing the deposit of the application fee by the Authority, and the date and number of registration shall be written on the petition.
The applicants shall be given a document of receipt with signature and seal indicating the date and number of registration.
After the petitions submitted to the Turkish Consulates are registered and the document of receipt is given, they shall be submitted to the relevant contracting entity or Authority via registered posting within the subsequent business day at the latest.
SECTION TWO
Investigation by Contracting Entity
Complaint to the Contracting Entity
Article 12- The candidates, tenderers or those that can be tenderers shall firstly complain to the contracting entity holding the tender in relation to the procurements.  The contracting officer takes his resolution about the complaint according to the results of investigation conducted by him personally or caused to be conducted to one or more reporters according to the nature of the work.
The Contracting Entity shall take into account the procedures and principles set forth by the Authority in the process of resolution to be taken pursuant to the application for complaint.
Continuation of Procurement Process
Article 13- The contract cannot be signed unless the complaint application to the Contracting Entity is concluded or it is approved by the Contracting Officer to continue the procurement proceedings owing to urgency and public interest. After the complaint is submitted, it may be decided by the Contracting Officer to continue the procurement process and sign the contract with the causes thereof before the complaint is concluded.


This resolution shall be notified to the complainant so that he receives the same at least at 7 days in advance of the signing of the contract. He can make an objecting complaint application to the Authority within 3 days following such notification in return for the said resolution.
If the Contract is signed before duly notification by the Contracting Entity, the procurement award and the contract shall be void.
The resolution of the contracting entity approved by the contracting officer for continuing the procurement process and signing the contract shall not have the capacity to conclude the application, but a resolution taken as a preliminary precaution to be implemented during the period of time until the application is concluded by the contracting entity. Objection or no objection to this resolution shall not affect the application to made against the resolution concluding the application or the application when any resolution is not taken within 30 days.
Aspects of Resolutions
Article 14- The following aspects shall be included in the resolutions to be taken upon the complaint application of the contracting entity:
a) Procurement registration number,
b) Date and number of registration of application to the contract entity's records as well as the date and number of resolution,
c) The procurement that is the subject matter of application,
d) The Applicant,
e) Summary of other resolutions taken and the proceedings conducted upon the application,
f) Summary of the claims, events and the legal bases,
g) Evaluation through the claims and events,
h) The legal reasons and causes, and result of the resolution,
ı) If the complaint is found justified partially or wholly, the corrective actions required and whether the procurement process will continue or not with such corrective actions,
i) Name, surname and signature of the contracting officer.
Resolutions Taken by Contracting Entity
Article 15- The Contracting Entity may take any of the following resolutions as a result of investigation through the basis of the complaint;
a) Determining the corrective action in cases where the problem may be remedied through correction and where it is not required to interrupt the procurement process;
b) Canceling the procurement proceedings if any event hindering the continuance of the procurement process and that cannot be remedied with a corrective action and that is in contrary to the related legislation;

c) Disapproving the application for complaint.





SECTION THREE
Investigation by the Authority
PART ONE
Objecting Complaint Applications
Objecting Complaint to the Authority
Article 16- If any resolution is not taken within three days following the date of the notification of the resolution by the contracting officer for continuation of the procurement proceedings owing to urgency and the public  interest reasons, or within fifteen days following the notification of the resolution by the contracting entity finalizing the application, or within thirty days following the date of complaining to the contracting entity, one may apply to the Authority for complaint within fifteen days following the expiry of the duration for taking a resolution.
The answers by the contracting entity to the subsequent complaint applications made to the contracting entity and containing the same content with the first application shall not release the application period.
Investigation by the Authority
Article 17- In respect of the objecting complaints, it shall be investigated whether the phase(s), which is/are the subject matter(s) of the complaint, or the proceedings concerned with this phase is/are in compliance with the public procurement legislation.
Investigation through the claims shall be conducted restricted to such claims.

The Authority may request documents, information and opinions from all public and private authorities, organizations and persons in fulfilling its duties. Such documents, information and opinions must be provided in a timely manner.
Proceedings upon Application
Article 18- The objecting complaints submitted to the Authority shall be registered by the general documentation unit, and the application registered shall be submitted to the related Vice Chairman's office on the same day or the subsequent business day. The Vice Chairman shall designate the Department, which shall investigate through the application, and the application and the annexes thereto shall be sent to such Department.
The Department shall firstly investigate whether the application has the nature of objecting complaint or not. The complaint applications submitted directly to the Authority, and the applications for informing the Authority of such an application made to the contracting entity, and the applications made before a resolution is taken by the contracting entity about the complaint submitted to the contracting entity and before expiry of 30- day waiting period shall be sent to the contracting entity holding the procurement by the Department.
When the process to investigate through the basis of the objecting complaints submitted to the Authority is initiated, this case shall be notified to the contracting entity.
Before the proposal for appointment in relation to the investigation through the basis of the application, the Department shall request the procurement dossier or the information and documents concerning the subject matter of the application from the contracting entity holding the procurement.

Duty of Investigation Through Applications
Article 19- The applications shall be investigated by an expert or a committee consisting of maximum 3 persons including at least one expert among them according to the subject matter or scope of them. The Expert or Committee shall be appointed by the Vice Chairman upon the proposal of the Department where the application is sent.

The members of the committee may be designated among the assistant experts besides the expert or experts. The assistant experts should work for at least one year in the Authority as the assistant expert in order to be able to take part in the committee. It is compulsory that the Chairman of Committee is an expert.

The Expert or Committee shall conduct every research and investigation through the procurement as per Article 17 upon the submittal of the application to them. The Expert or Committee may request the documents, information and opinions required for the procurement or subject matter of the complaint from all public and private authorities, organizations and persons through the Vice Chairman during the fulfillment of their duties.
Preliminary Investigation Subjects and Proceedings Upon Preliminary Investigation
Article 20- The petitions shall firstly be investigated in sequence in respect of;
a) Whether the subject matter of application within the field of activity of the Public Procurement Authority;

b) Capacity of the applicant;
c) Whether the application is made in a timely manner;
d) Compliance with Article 8 of this Regulation;
e) Whether it is necessary to cease the procurement process.
The outcomes of the investigation regarding items (a), (b), (c) and (d) shall be entered into the Preliminary Investigation Minutes.

As a consequence of the preliminary investigation, if anything contrary is found in respect of items (a), (b) and (c), the Preliminary Investigation Report containing such contrary acts shall be issued.
If anything contrary is not found in respect of the subjects of the preliminary investigation set forth in items (a), (b), (c) and (d), the actual investigation shall be initiated upon the approval of the Head of Department. The Preliminary Investigation Report shall be issued limited to the matter whether the procurement process shall be ceased or not.
If anything contrary is found out in respect of items (b) and (c), the Preliminary Investigation Report shall be prepared with respect to whether the process of investigation through such contrary acts and claims shall be initiated.
If anything contrary is found out in relation to item (d), the Preliminary Investigation Report shall not be issued. The Head of Department shall notify the complainant to remedy the action contrary to Article 8. Such contrary act shall be remedied by the complainant within such period of time if there are 3 days or more for the expiry of the application period, and within 3 days if the application period expires or there are less then 3 days. If such contrary act is remedied in a timely manner, the actual investigation process shall be initiated upon the approval of the Head of Department and the Preliminary Investigation Report shall be issued limited to the matter whether the procurement process shall be ceased or not. If the contrary act is not remedied in a timely manner or the same contrary act repeated as a second time, the Preliminary Investigation Report shall be issued in respect of such contrary act and whether the claims shall be investigated or not.
If it is found out that the contract is signed in respect of the objecting complaints, the Committee shall not discuss about whether the procurement process shall be ceased or not.
Resolutions Taken Upon the Preliminary Investigation
Article 21- The Chairman shall take the application to the agenda of the Committee on the date of first meeting following the date when the preliminary investigation report is submitted. The Committee shall resolve on the following with the agenda where the preliminary investigation report is discussed:
a) Rejecting the application in respect of duty issues if it is found out that the subject matter of the application is not in the field of activity of the Authority;
b) Rejecting the application in respect of capacity issues if it is found out that the person raising the claim does not have the capacity;
c) Rejecting the application in respect of time issues if it is found out that the application has been made after the expiry of any claim;
d) Rejecting the application if the contrary act to Article 8 is not remedied in a timely manner;
e) It is not necessary to take resolution if the procurement is cancelled by the contracting entity or the procurement proceeding, which is the subject matter of the application, has been cancelled by the Committee before;
f) It is not necessary to take resolution if the application for complaint is deferred;
g) Rejecting the application in other applications where it is not possible for the Authority to investigate except for the matters mentioned above.

The process of investigation through the basis is initiated when it is resolved that there is not any contrary act in respect of the preliminary investigation issues discussed by the committee within the framework of this article.
Upon the final resolutions taken according to items (b), (c), (d), (e), (f) and (g) in relation to the preliminary investigation matters, the Committee shall also resolve on whether the process of investigation through the claims shall be commenced or not.
Cessation of Procurement Process
Article 22- In cases where the portion of the application investigated in relation to the procurement, which is the subject matter of such an application, is clearly illegal or in cases where it is likely that the works contractor, supplier, service provider, public, contract entity and other tenderers may incur losses, which are difficult or impossible to compensate, the Committee shall resolve on cessation of the procurement process until the final resolution thereafter.

The claims against the resolution taken by the contracting officer for continuation of the procurement process or signing the contract shall be finalized within five days by the Authority and notified to the contracting entity and the complainant. The contract shall not be signed by the contracting entity until the claim is finalized and the resolution is notified by the Authority.
A resolution is taken by the Committee on whether it is necessary to cease the procurement process or not during the meeting where the Preliminary Investigation Report is discussed. If the Committee deems it necessary to conduct a separate investigation to take a resolution in respect of the objecting complaints, such resolution may be taken as a result of the investigation to be completed within 5 days following the date of meeting where the Preliminary Investigation Report is discussed.
Listening to the Parties
Article 23- In cases where deemed necessary by the Committee, it may be resolved on listening to the respective parties and other concerned people deemed necessary. The Committee shall designate a specific date in cases where it is resolved to listen to the parties. Such date designated shall be notified to the respective parties and the concerned people at least at 3 days advance.
Resolutions Taken by the Committee
Article 24- The Committee may resolve on the following as a result of investigation through the basis of the objecting complaint application;
a) Defining the corrective actions in cases where the problems may be remedied through correction by the contracting entity and it is not necessary to interrupt the procurement process;
b) Canceling the procurement proceedings if anything that may hinder the continuation of the procurement process and that cannot be remedied through the corrective actions, and that is contrary to this Law and the pertinent legislation;
c) The objecting complaint application has been disapproved;

The Committee, if deemed necessary, may resolve on informing the contract entities to be designated and/or proclaiming the acts of crimes to the Public Prosecution Offices for further actions in administrative and/or penal aspects in relation to the acts that are found to be contrary.
Aspects of Resolutions
Article 25- The following aspects shall be included in the resolutions to be taken upon the objecting complaint applications:
a) Procurement registration number,
b) Date and number of registration of application to the authority's records,
c) The procurement that is the subject matter of application,
d) The Contracting Entity and the date and number of resolution taken by the contracting entity holding the procurement,
e) The applicant or complainant of the objecting complaint application,

f) Summary of the claims, events and the legal bases,
g) Summary of other resolutions taken and the proceedings conducted by the Authority upon application,
h) Evaluation through the claims and events,
i) The legal reasons and causes, and result of the resolution, and if any, the reasons and result of the minority vote,
j) Date and number of resolution, and the distinguishing between the unanimous and majority of votes;
i) Names, surnames and signatures of the Chairman and Members of Committee participating in the meeting.

PART TWO
Investigation Through Claims
Request by Chairman
Article 26- The Chairman may require the investigation of the claims of breach of the procurement legislation, which are deemed serious and concrete and which reflect to the public in relation to the procurements within the scope of the Law. Such request of the Chairman shall be promptly notified to the Head of Department by the Vice Chairman. An expert proposed by the Head of Department shall be assigned by the Vice Chairman to evaluate the claims.
Applications for Investigation Through Claims
Article 27- The written applications requesting the investigation through the claims submitted to the Authority shall be registered by the general documentation unit, and submitted to the relevant Vice Chairman's Office on the same day or the subsequent business day. The Department where the claims shall be investigated shall be determined by the Vice Chairman, and such application and annexes thereto shall be submitted to the related Department.
Firstly, an expert proposed by the Head of Department shall be assigned by the Vice Chairman to evaluate in respect of whether the investigation process should be initiated after accepting such claim.
     Conditions of Acceptance
Article 28- The following conditions are required in sequence to enable the Committee to resolve on investigation through the claims:
a) Indication of the procurement and the contracting entity holding the procurement in the application;
b) The claims in the application being concrete and serious;
c) There not being any complaint application resulted in the resolution of rejection as a result of investigation through the basis for the same procurement or the same subject matter or any application not having been made to the Authority against the resolution taken upon the complaint application, or the basis of the claim not having been investigated;
d) If the procurement process has been completed and any complaint and/or objecting complaint application has not been made in the same subject matter, the public interest from the administrative inspection being higher than the benefit from continuation and completion of the work to be procured.
Obtaining Information from the Contracting Entity
Article 29- Upon applications, when the expert notifies that the conditions set forth in items (a) and (b) of Article 28 have been fulfilled within 3 business days or when the notification of the Chairman is submitted, the Head of Department requests the following from the Contracting Entity in relation to the procurement, which is requested to be investigated;
a) Subject matter of procurement;
b) The phase of procurement process;
c) Whether there is any complaint application made to the administration in this process, and the resolutions taken, if any, and the proceedings conducted and the investigations undertaken;
d) The candidates and tenderers that have made pre-qualification application, if already made, and/or submitted tenders as well as the tenders submitted and the tender found the most advantageous economically. If the procurement process has been completed, a certified copy of the contract shall be sent by the contracting entity. The contracting entity has to submit such information and documents to the Authority within 3 business days.
Aspects of Resolutions Taken Upon Investigation Through Claims
Article 30- After the Evaluation Report is presented by the Vice Chairman, the Chairman shall distribute the report to the Members of Committee, and take it in the agenda of the Committee within 15 days at the latest.
The resolution of Committee on whether the claims shall be investigated shall include the following items:
a) Date and number of registration of application to the records of Authority, and the resolution number of Committee,
b) Procurement, which is the subject matter of application,
c) Contracting entity holding the procurement,
d) Summary of the claims raised and the legal causes based,
e) Summary of proceedings and evaluation upon application or notice,
f) The legal reasons and causes, and result of the resolution, and if any, the reasons and result of the minority vote,
g) Date and number of resolution, and the distinguishing between the unanimous and majority of votes;
h) Names, surnames and signatures of the Chairman and Members of Committee participating in the meeting.
Resolutions Taken Upon Investigation Through Claims
Article 31- As a result of investigation through claims, either of the following resolutions shall be taken;
a) The claims being disapproved;
b) If the claims are approved as a result of investigation, notification of the procurement tenders where acts contrary to the legislation are detected to the pertinent contracting entity and/or the Public Prosecution Office.
Notification of Resolution
Article 32- The resolution taken upon any application shall not notified to such address in writing if the particulars of identity and the notification address of the applicant are provided. If the particulars of identity and the address are not included in the application, or the notification could not be made to the address given, the resolutions in the investigation process need not to be notified to the applicant.
Investigation Process
Article 33- If the contracting entity holding the procurement, which is the subject matter of the application, makes a declaration, it shall be resolved that the investigation be conducted directly by the Authority.
In cases where the contracting entity holding the procurement, which is the subject matter of the application, does not make a declaration, the Resolution of Committee and each copy of the application petition, if any, and the annexes thereto shall be sent to the contracting entity holding the procurement. The resolution for finalizing the application shall be taken by the contracting entity through the implementation of the procedures and principles set forth in this Regulation. The resolution shall be notified to the parties and sent to the Authority with the procurement dossier on the date of notification.
The resolution taken by the contracting entity after the submittal of the request for investigation through the claims is submitted to the relevant contracting entity by the Authority, shall be examined within the framework of the procedures and principles except for the articles related to the preliminary investigation stipulated hereunder for investigation of objecting complaint by the Authority, and any of the resolutions provided under Article 31 shall be taken.



SECTION FOUR
Results of Resolutions
Resolutions Taken Upon Complaint
Article 34- The Contracting Entity shall notify the final resolutions taken upon complaint to all candidates and tenderers within 7 days at the latest. If any claim is not raised to the Authority within 15 days following the date of final notification, the Authority shall perform the actions and proceedings required by the resolution.
Raising a claim to the Authority shall not prevent fulfillment of the requirements of resolutions except for signing the contract. If the Authority resolves on ceasing the procurement process, the proceedings shall be ceased and the final resolution of the Authority shall be waited, and the requirements of such resolution shall be fulfilled. If it is not deemed necessary to cease the procurement process by the Authority, the contracting entity may sign finalize the procurement process without waiting for the actual resolution by signing the contract.
Resolutions Taken At The End of Process for Investigation of Objecting Complaints and Claims
Article 35- The final resolutions taken by the Committee at the end of the process for investigation of the objecting complaints and the claims in relation to the procurement process shall be published in the Official Gazette. The resolutions shall be notified to the respective parties within 5 days following the date of resolution.
The Contracting Entity is liable to conduct the proceedings and actions required by the resolutions of the Committee to such extent to cause any change to the legal condition within 7 days at the latest following the date of notification of the resolution to it. The implementations shall be notified to the Authority within 5 days as from the date of implementation of resolution.
In the case of approval of procurement and cancellation of any of the proceedings before such approval, the requirements of the resolution shall be fulfilled by the contracting entity, and if necessary, the procurement process shall be initiated again upon taking the procurement approval.
Should any of the proceedings following the procurement approval is cancelled, it is not necessary to initiate the procurement process again. The proceeding cancelled and other proceedings established following such proceeding shall be removed with all results as of the date of establishment, and the procurement process shall continue according to the requirements set forth in the resolution.
The concerned parties may raise an objecting complaint to the Authority claiming that the resolutions of Committee causing changes to the legal condition are implemented deficiently or incorrectly.

SECTION FIVE
Means of Application Against Resolutions
Clarification
Article 36- If the resolutions taken by the Contracting Entities and the Authority is not clear enough, or contain contrary provisions, each party may request clarification of the resolution or remedial of such contrariness.
The contracting entity or Authority taking such resolution shall investigate through the works, and if deemed necessary, notify one copy of the petition to the respective parties for reply within the indicated period of time.
The resolution of the contracting entity and Authority in this matter shall be notified to the respective parties.
Removal of clarification or contrariness can only be requested until the requirements set forth in the resolution are fulfilled.
Correction of Mistakes
Article 37- The correction of mistakes concerning the names, surnames, capacities and results of claims of the parties and the substantial errors in the provisions may be requested by the parties.
If it is resolved on correcting the mistakes, the correction shall be written under all resolutions issued for notification.
Duration of Objection
Article 38- The application for clarification and correction of mistakes shall not affect the duration of objecting complaints. However, if the resolutions taken upon such claims contain aspects different from the first resolution or the items that can be objected, the duration for objecting complaint shall commence again with the notification of resolution in respect of the related parties.
Legislation Abolished
Article 39- Regulation On Administrative Applications Against Procurements, which was published in the Official Gazette #24996 dd. 17/01/2003, has been abolished.

Provisional Article 1- The provisions of the Regulation published in the Official Gazette #24996 dd. 17/01/2003 shall be applied in respect of the complaint applications made prior to the date of release of this Regulation hereby.
Enforcement
Article 40- This Regulation shall enter into force on the date of release.
Execution
Article 41- The provisions of this Regulation shall be executed by the Chairman of Public Procurement Authority.

#70
Principles Amending the Principles to Apply in Calculation of Price Difference related with the Goods to be procured under Public Procurement Law No.4734
(As Amended)

Turkish Official Gazette Date:05/02/2003
Turkish Official Gazette No: 25015


Purpose
Article 1- The purpose of these principles is to establish the principles and procedures to be used in calculation of the price differences for the goods procurements contracted pursuant to Public Procurement Contracts Law No 4735 of the Contracting Entities under the scope of Public Procurement Law No 4734.
Scope
Article 2- The transactions related with the price difference calculations to be applied in lump sum contracts and unit price contracts related with the procurement of petroleum products contracted according to the Public Procurement Contracts Law No 4735 and goods, which are produced by the tradesmen and craftsmen under the Tradesmen and Small Craftsmen Law no 507, shall be carried out according to these principles.
Basis
Article 3- These principles have been drawn up based on the article 8 of the Public Procurement Contracts Law No 4735.
Principles to be observed by Contracting Entities
Article 4- The Contracting Entities must include provisions stated herein in the specifications and contracts of the goods to be procured under Public Procurement Law# 4734 in order to be able to calculate price difference.
Definitions
Article 5- For the application of provisions on the goods procurements the following definitions shall apply;
a) Contracting Entity: the organizations and institutions within the scope of the Public Procurement Law No 4734,
b) Goods: all kinds of goods and movable and immovable goods and rights procured with tenders under the Public Procurement Law No 4734,
c) Contract: Written agreement between the Contracting Entity and the contractor for the procurement of services over lump sum or unit prices,
d) Lump Sum Price: The total price offered by the tenderer for the whole of the goods procurement, detailed properties and quantity of which are specified by the Contracting Entity,
e) Contract unit price: the price established in the contract for each work item to be carried out according to the tender document in the unit price contracts,
f) Work item with offered unit price: The units forming the basis for the payments, technical or special characteristics of which are stated, and the costs of which are shown in the contract at the goods procurements to be carried out according to the unit price contract,
g) Delivery date: the date on which the good is delivered to the Contracting Entity in accordance with the delivery program approved by the Contracting Entity,
h) Petroleum products: gasoline types, kerosene, diesel, marine diesel, heating fuel, liquid petroleum gas and fuel-oil types,
i)  Price Schedule: the price schedules, which are prepared by the related chambers and enacted with the approval of the Union Presidential Board of such chambers, relating to the goods, produced by the tradesmen and craftsmen under the Tradesmen and Small Craftsmen Law no 507,
j) Maximum Retail Sale Price: the local maximum retail price (excluding VAT) of the petroleum products, notified by the liquid fuel distribution companies to Ministry of Energy and Natural Resources and to the governorships,
k) Price difference coefficient: The lowest local maximum retail sale price of the procured petroleum product on tender date or the coefficient showing the ratio of the difference between the price of the good produced by the tradesmen and craftsmen under the Law no 507 the in the price schedule and the contract price to the lowest local maximum retail sale price or the price in the price schedule,
l) Price difference: The price to be paid or deducted according to these principles for the good items delivered to the Contracting Entity according to the delivery program in the unit price contracts and for the goods amounts delivered as per the total delivery percentages according to the delivery program in lump sum contracts,
Application Principles
Article 6- The following principles must be observed in price difference calculation:
a) No amendments may be made to the procedures and principles in the contract related with the price difference once the contract is signed.
b) The costs to be paid or deducted in addition to the contract price as a result of the application of these principles are in the form of price difference and do not affect the contract price.
c) No price difference shall be paid for works procured all at once based on both the quantity and technical specifications.
d) No price difference shall be paid due to the increases in the price, tax and insurance. 
e) These principles shall not apply to works, the costs of which are paid in foreign exchanges or Turkish Lira equivalent of foreign exchanges by calculating exchange differences separately.
f) No provision on the payment of price difference shall be included in the administrative specifications and contracts for the goods, of which the local maximum retail price or price schedules have not been determined.
In cases where the prices of the goods, for which the price difference has been calculated, is freed or the price increase rates makes the execution of the contract impossible, it is mandatory to include in the contracts the provision that the arrangements on the price difference payment be invalid.
The Contracting Entities may include limitations related with the payment of price difference up to a specific ratio of the contract amount in the contracts
g) No price difference may be paid due to the delays resulted by the contractor's fault to perform his obligation on time in accordance with the provisions of the administrative specifications and contract.
h) In case time extension is granted to the contractor due to the forces majeure stated in article 10 of the law no 4735 or due to the Contracting Entity's fault, no price difference shall be paid to the contractor unless opposing provisions are stated in the administrative specifications and contract.
i) The price difference shall be calculated after deducting the advance payment for goods procurements where an advance payment has been made.
j) In the calculation of the price difference coefficient and the price difference of the petroleum products, the lowest local maximum retail prices (excluding VAT) notified to the Ministry of Energy and Natural Resources and the governorships by the liquid fuel distributors on tender date and during the execution of the contract, in the calculation of the price difference coefficient and the price difference of the goods produced by the tradesmen and craftsmen under the Law no 507 the price schedule valid as of the tender date and during the execution process shall apply.
k) For the healthy execution of the price difference application and the correct calculation of the price difference to be deducted or paid, the records of the delivered goods shall be kept as of price change periods.
Price difference calculation
Article 7 - The price difference coefficient and the price difference shall be calculated according to the following formulas:
F: Price Difference (TL),
Pn: Price difference coefficient,
A1: the lowest local maximum retail price (excluding VAT) of the procured petroleum product on the tender date or the price of the procured good in the price schedule,
B: Contract price,
A2: the lowest local maximum retail prices (excluding VAT) of the procured petroleum product notified to the Ministry of Energy and Natural Resources and the governorships by the liquid fuel distributors after signing the contract or the price of the procured good in the new price schedule,
M: The quantity of the good delivered to the Contracting Entity after the lowest local maximum retail price or the price schedule is changed,
1- The price difference coefficient shall be calculated according to the following formula:     
                           A1 - B
            Pn =   ------------
                  A1                 
2- (Amended: 05.02.2004- 25015/ art. 1) In case the lowest local maximum retail price or the price in the price schedule is established more than the contract price, the price difference to be paid to the contractor shall be calculated according to the following formula:
F=M x [ (1-Pn ) x (A2 - A1)]"
3- In case the lowest local maximum retail price or the price in the price schedule is established less than the contract price, the price difference to be deducted from the contractor shall be calculated according to the following formula:
F= M x [ B - ( A2 – ( A2 x Pn))] 
Enactment
Article 8- These principles shall enact as of the publication date to be valid from  1/1/2003.
Enforcement
Article 9- The Cabinet shall enforce these principles.
#71
Principles Amending the Principles to Apply in Calculation of Price Difference related with the Services to be procured under Public Procurement Law No.4734   (As Amended)

Turkish Official Gazette Date: 07/05/2004
 
Turkish Oficcial Gazette No: 25455 
 

Purpose
Article 1- The purpose of these principles is to establish the principles and procedures to be used in calculation of the price differences for the services procurements contracted pursuant to Public Procurement Contracts Law No 4735 of the Contracting Entities under the scope of Public Procurement Law No 4734.
Scope
Article 2- The transactions related with the price difference calculations to be applied in services that the Contracting Entities are to procure by taking lump sum or unit price bids according to Public Procurement Law No 4734 shall be carried out according to these principles.
Basis
Article 3- These principles have been drawn up based on the article 8 of the Public Procurement Contracts Law No 4735.
Principles to be observed by Contracting Entities
Article 4- The Contracting Entities must include provisions stated herein in the specifications and contracts of the services to be procured under Public Procurement Law# 4734 in order to be able to calculate price difference.
Exceptions
Article 5- Of the services specified in article 4 of Public Procurement Law No.4734, price difference shall not be paid to short term services such as research and development, market surveys and polls, promoting, meeting, organization, exhibition, professional training, photography, film, intellectual and fine arts, and insurance, accounting, communication services and the financial and legal services of the consultancy services stated in article 48 of the said law. Opposing provisions shall not be included in the specifications and contracts.
Definitions
Article 6- For the application of provisions on the services procurements the following definitions shall apply;
a) Contracting Entity: the organizations and institutions within the scope of the Public Procurement Law No 4734,
b) Service: the services stated in article 4 of the Public Procurement Law No 4734,
c) Contract: Written agreement between the Contracting Entity and the contractor for the procurement of services over lump sum or unit prices,
d) Lump Sum Price: The total price offered by the tenderer for the whole of the work, detailed properties and quantity of which are specified by the Contracting Entity,
e) Offer unit price: The price offered by the tenderer for each item of the schedule, which is prepare by the Contracting Entity based on the detailed characteristics of the work,
f) Contract unit price: the price, offered by the contractor and shown in the contract after being approved by the Contracting Entity for each work item to be carried out according to the unit price definition and technical specifications in the unit price contracts,
g) Work item with offered unit price: The units forming the basis for the payments, technical or special characteristics of which are stated, with unit price definitions and the costs of which are shown in the contract or unit price of which is established later, at the works to be carried out according to the unit price contract,
h) Work group: the units forming the basis for the payments, which are comprised of the sum of the work items related with the interim or final payments and showed by progress ratios in lump sum works,
i) Year: Calendar year,
j) Day: Calendar day,
k) Execution month: the month in which the works are performed according to the work program approved by the Contracting Entity,
l) Base Index: the index for the month preceding the month in which the tender date exists,
m) Current index: the index for the month preceding the month in which the progress payment is prepared,
n) (Amended: 07.05.2004- 25455/ art. 1) Base minimal wage: the valid gross minimal wage for those workers, outside agriculture sector and over 16 years of age, as of the tender (final offer) date,
o) (Amended: 07.05.2004- 25455/ art. 1) Current minimal wage: the valid gross minimal wage for those workers, outside agriculture sector and over 16 years of age, as of the date on which the progress payment for the works in the work program are prepared,
p) Base salary coefficient: the servant salary coefficient established according to the article 154 of the state civil servants law no 657 and valid as of the tender date,
r) (Amended: 07.05.2004- 25455/ art. 1) Current salary coefficient: the servant salary coefficient established according to the article 154 of the state civil servants law no 657 and valid as of the date on which the progress payments are prepared,
s) Price difference: The price to be paid or deducted according to these principles for the work items carried out in the execution month according to the work program in the unit price contracts and for the work groups realized as per the progress ratios in the execution month according to the work program in lump sum contracts,
Price difference calculation
Article 7- The price difference shall be calculated according to the following formula: 
F = An x B x ( Pn –1)           
                                        İn              Yn           Gn           Kn           Mn
             Pn =   [a1 + a2  —— + b1  —— + b2  —— + c —— + d  —— ]
                                        İo              Yo           Go           Ko            Mo 
Whereas;
F: Price difference (TL),
An: the amount (TL) calculated by multiplying the work items realized in the execution month by the contract prices in works with offer unit price at progress payment no (n), where n=1 at the first progress payment; and the amount (TL) calculated by multiplying the work group and/or the work item production amount realized in the execution month according to the progress ratio by the contract prices in lump sum works,
B: the coefficient of 0.90,
Pn: the price difference coefficient calculated by applying the basic indexes and current indexes used in price difference calculation and representative coefficients of the weight ratios of the a1, a2, b1, b2, c and d values at the progress payment no (n), where n=1 at the first progress payment,
           a1: the fixed coefficient, represents the rate of labor based on the minimal wage, which will be used in the calculation of the works to carried out under contract and for which an increase difference shall be paid according to article 8 of these principles, and for which no increase is foreseen in the above formula,
           a2: the fixed coefficient, which will be used in the calculation of works under contract and represents the weight ratios of the labor other than a1 coefficient,
            b1: the fixed coefficient representing the weight ratio of the fuel to be used in the performance of the works under contract,
b2: (Amended: 07.05.2004- 25455/ art. 2) the fixed coefficient representing the inputs of other goods or other services to be used in the performance of the works under contract,
c: the fixed coefficient representing the architecture and consultancy ratios of the works under contract,
d: the fixed coefficient representing the weight ratio related with the depreciation of the equipment and machinery to be used in the performance of the works under contract,
It is mandatory that one, several or all of the fixed coefficients a1, a2, b1, b2, c and d be determined by the Contracting Entity in consideration of the ratio in the work tendered such that their sum to be equal to one (1.00) and be published in the tender document. These fixed coefficients shall in no way be changed during the execution of the contract.
The basic indexes (o) and the current indexes (n) in the formula mean the followings;
İo, İn: the basic minimal wage and the current minimal wage related with labor,
Yo, Yn: the basic and current indexes of fuel; the figure in the "Coal, Refined Petroleum Products" line of the Table 2- Wholesale Prices Index Figures Table published by the Prime Ministry State Statistics Institute with 1994=100 base,
Go, Gn: the basic and current indexes of materials other than fuel; the figure in the "General" line of the Table 2- Wholesale Prices Index Figures Table published by the Prime Ministry State Statistics Institute with 1994=100 base,
Ko, Kn: the basic salary coefficient and the current salary coefficient related with engineering and consultancy,
Mo, Mn: the basic and current indexes of machinery and equipment depreciation; the figure in the "Machine and Equipment Production" line of the Table 2- Wholesale Prices Index Figures Table published by the Prime Ministry State Statistics Institute with 1994=100 base,
In case one or several of the indexes stated above are changed by Prime Ministry State Statistics Institute during the implementation of the contract, the price difference shall be calculated by the new index when it is established for the changed one, if not, the figure in the "General" line of the Table 2- Wholesale Prices Index Figures Table published monthly by the Prime Ministry State Statistics Institute with 1994=100 base.  
The difference caused by the changes in the minimal wage and other labor costs (Amended: 07.05.2004- 25455/ art. 3)*
Article 8 – Provided that the number and daily working hours of the staff under Social Insurance Law No 506 to be employed for the realization of the service tendered; the sum of the following paragraphs a, b and c shall be paid or deducted without applying the article 7 of these principles considering the payments to be made by the Treasury on behalf of the employer pursuant to the law no 506;
a) The difference between the old and the new minimal wage in case the minimal wage established for workers older than 16 years of age is changed by the minimal wage establishment commission on tender date,
b) The difference to occur as of the tender date at the sum related with the social insurance premium and unemployment insurance premium to be paid by the employer due to the change in the minimal wage or lower limit change and premium rate changes,
c) the difference to occur at the sum related with the social insurance premium and unemployment insurance premium to be paid by the employer due to the payment additions envisioned in the contract within the framework of the second paragraph of article 77 of the law no 506.
Application Principles
Article 9- The following principles must be observed in price difference calculation:
a) No amendments may be made to the procedures and principles in the contract related with the price difference once the contract is signed.
b) The costs to be paid or deducted in addition to the contract price as a result of the application of these principles are in the form of price difference and do not affect the contract price.
c) These principles shall not apply to works, the costs of which are paid in foreign exchanges or Turkish Lira equivalent of foreign exchanges by calculating exchange differences separately.
d) During the preparation of the progress payments in cases where the index to apply to the progress payment is not revealed, the price difference shall be computed using the previous index. As soon as the new indexes are revealed, the price differences for the following progress payments shall be corrected accordingly.
e) The price differences, such calculated, cover all price increases that might be the subject of price difference payment. Other than this, no price difference shall be paid due to the procedures, the type and amount of the machinery, equipment, material and labor used by the contractor, devaluation of Turkish Lira against foreign exchanges, the increase in the price of the material procured from abroad and other similar reasons.
f) At works, for which an advance payment is made, the amount to be paid to the contractor having deducted the advance from the progress payment is considered as the (An) amount. Where the price difference coefficient (Pn) is smaller than 1, no advance payment shall be deducted from (An) amount.
g) These principles shall apply to work items and/or work groups carried out according to the work program.
h) In case a new unit price is established during the execution of the work for the work item, for which there exists no unit price in the contract and which is requested to be performed by the Contracting Entity, in unit price contracts, this price shall be established according to the market value and conditions of the month in which the price is established. The price computed by dividing the newly established unit price by the execution month price difference coefficient (Pn) is multiplied by the amount of work item and the resulting amount is included in the column "works performed with the contract unit prices" at the progress payment and paid to the contractor as the new work item on the basis of contract. The price difference for this work item is found by calculating over the indexes of the execution month.
i) (Inserted: 07.05.2004- 25455/ art. 4) Provision related with only the application of article 8 of this article may be included in the administrative specifications and contracts.
Work program and allocation segment
Article 10- The contractors, having signed the contract, shall prepare and have approved by the Contracting Entity a detailed work program showing the work items, monthly works, annual allocations and monthly distribution of these.
In case an allocation in any work program of any month is not spent, the index of the month, in which the work program is not realized, shall continue to apply in the following progress payments until the progress payments become equal to the unspent portion of the allocation.
In case time extension is granted to the contractor due to the forces majeure stated in article 10 of the law no 4735 or when the Contracting Entity's fault caused the delay of the execution of the contract, price difference shall be calculated for works carried out according to the revised work program, which is prepared by the contractor and approved by the Contracting Entity, based on the extended time.
In cases where the contractor fails to prepare the work program and have it approved by the Contracting Entity, the work program is prepared and approved by the Contracting Entity one sided. The contractor is obliged to comply with such prepared and given work program.
Increases and decreases in the amount of service
Article 11- On condition that the provisions of the article 10 are considered related with the allocation segments, in cases where increases or decreases in the amount of the services are determined in unit price contracts, the increased or the decreased amount (regardless of the month the service is performed) is valued by the price difference coefficient of the month in which the increase or decrease is finalized so as not to exceed the work completion date.     
Application in the penalty works
Article 12- When the price difference is calculated at works, which failed to receive time extension although the duration expired and which is performed with the permission of the Contracting Entity, the lower of the (Pn) value valid at the end of the expiration date of the duration and the (Pn) value during the period of penalty work shall apply.
Works for which no price difference is envisioned
Article 13- Though the payment of price difference is not envisioned in the administrative specifications and contract of the work tendered, in case the work completion date is postponed by granting time extension due to forces majeure or the failure of the Contracting Entity, price difference may be paid to the work items or work groups, carried out in the postponed period according to the work program, pursuant to these principles on condition that it is stated in the administrative specifications and the contract.
The base index in the price difference calculation means the index of the month in which the work completion date takes place, and the current index means the index of the month in which the progress payment preparation date takes place. The figure in the "General" line of the Table 2- Wholesale Prices Index Figures Table published monthly by the Prime Ministry State Statistics Institute with 1994=100 base shall be considered as the base and current indexes.
Enactment
Article 14- These principles shall enact on 1/1/2003.
Enforcement
Article 15- The Cabinet shall enforce these principles.
* This amendment is valid from 01.01.2004.
#72
Principles to Apply in Calculation of Price Difference related with the Construction Works to be tendered under Public Procurement Law No.4734
Official Gazette Date:
31/12/2002
 
Official Gazette No:
24980/ 3. Reiterated
 

Purpose
Article 1- The purpose of these principles is to establish the principles and procedures to be used in calculation of the price differences for the construction works contracted pursuant to Public Procurement Contracts Law No 4735 of the Contracting Entities under the scope of Public Procurement Law No 4734.
Scope
Article 2- The transactions related with the price difference calculations to be applied in construction works that the Contracting Entities are to procure by taking lump sum turnkey or unit price bids according to Public Procurement Law No 4734 shall be carried out according to these principles.
Basis
Article 3- These principles have been drawn up based on the article 8 of the Public Procurement Contracts Law No 4735.
Principles to be observed by Contracting Entities
Article 4- The Contracting Entities must include provisions stated herein in the specifications and contracts of the construction works to be procured under Public Procurement Law# 4734 in order to be able to calculate price difference.
Definitions
Article 5- For the application of provisions on the services procurements the following definitions shall apply;
a) Contracting Entity: the organizations and institutions within the scope of the Public Procurement Law No 4734,
b) Work: All kinds of construction works within the scope of Public Procurement Law No 4734 and the installation, production, preparation, transportation, completion, large scale repair, restoration, environment arrangement, drilling, demolishing, reinforcement and mounting works related thereto.
c) Contract: Written agreement between the Contracting Entity and the contractor for the procurement of services over lump sum or unit prices,
d) Turnkey Lump Sum Price: The total price offered by the tenderer for the whole of the work and approved by the Contracting Entity and shown in the contract based on application projects and location lists thereto in construction works to be contracted on turnkey lump sum price,
e) Unit price: the price, offered by the contractor and shown in the contract after being approved by the Contracting Entity for each work item in the schedule prepared by the Contracting Entity based on preliminary and/or final projects and location lists thereto in construction works to be contracted over unit prices,
f) Work item: The units forming the basis for the payments, technical or special characteristics of which are stated, with unit price definitions and the costs of which are shown in the contract or unit price of which is established later, at the works to be carried out according to the unit price contract,
g) Work group: the units forming the basis for the payments, which are comprised of the sum of the work items related with the interim or final payments and showed by progress ratios in works to be performed under turnkey lump sum price,
h) Year: Calendar year,
i) Day: Calendar day,
j) Execution month: the month in which the works are performed according to the work program approved by the Contracting Entity,
k) Base Index: the index for the month preceding the month in which the tender date exists,
l) Current index: the index for the month preceding the month in which the progress payment is prepared,
m) Price difference: The price to be paid or deducted according to these principles for the work items or preparations carried out in the execution month according to the work program in the unit price contracts and for the work groups realized as per the progress ratios in the execution month according to the work program in lump sum contracts,
Price difference calculation
Article 6- The price difference shall be calculated according to the following formula: 
F = An x B x ( Pn - 1 )
                 In              Çn              Dn           Yn             Kn             Gn          Mn
Pn = [ a —— + b1 —— + b2 —— + b3 —— + b4 —— + b5 —— + c —— ]
                 I0              Ç0             D0            Y0             K0             G0          M0
Whereas;
F: Price difference (TL),
An: the amount (TL) calculated by multiplying the work items or preparations realized in the execution month by the contract prices in works with unit prices at progress payment no (n), where n=1 at the first progress payment; and the amount (TL) calculated by multiplying the work group and/or the work item production amount realized in the execution month according to the progress ratio by the contract prices in lump sum works,
B: the coefficient of 0.90,
Pn: the price difference coefficient calculated by applying the basic indexes and current indexes used in price difference calculation and representative coefficients of the weight ratios of the a, b1, b2, b3, b4, b5 and c values at the progress payment no (n), where n=1 at the first progress payment,
a: the fixed coefficient representing the weighted ratio of labor to be used in the performance of the contracted works,
b1: the fixed coefficient representing the weighted ratio of cement to be used in the performance of the contracted works,
b2: the fixed coefficient representing the weighted ratio of iron/steel to be used in the performance of the contracted works,
b3: the fixed coefficient representing the weighted ratio of fuel to be used in the performance of the contracted works,
b4: the fixed coefficient representing the weighted ratio of lumber to be used in the performance of the contracted works,
b5: the fixed coefficient representing the weighted ratio of other materials to be used in the performance of the contracted works,
c: the fixed coefficient representing the weight ratio related with the depreciation of the equipment and machinery to be used in the performance of the works under contract,
It is mandatory that one, several or all of the fixed coefficients a, b1, b2, b3, b4, b5 and c be determined by the Contracting Entity in consideration of the ratio in the work tendered such that their sum to be equal to one (1.00) and be published in the tender document. These fixed coefficients shall in no way be changed during the execution of the contract.
The basic indexes (o) and the current indexes (n) in the formula mean the followings;
İo, İn: the basic and current indexes of labor; the figure in the "Turkey" line of the Table 3- Urban Places Consumers' Price Index on Regional and Provincial Base Table published by the Prime Ministry State Statistics Institute with 1994=100 base,
Ço, Çn: the basic and current indexes of cement; the figure in the "Production of Other Non-metallic Mineral Products" line of the Table 2- Wholesale Prices Index Figures Table published by the Prime Ministry State Statistics Institute with 1994=100 base,
Do, Dn: the basic and current indexes of iron/steel; the figure in the "Main Metal Industry" line of the Table 2- Wholesale Prices Index Figures Table published by the Prime Ministry State Statistics Institute with 1994=100 base,
Yo, Yn: the basic and current indexes of fuel; the figure in the "Coal, Refined Petroleum Products" line of the Table 2- Wholesale Prices Index Figures Table published by the Prime Ministry State Statistics Institute with 1994=100 base,
Ko, Kn: the basic and current indexes of lumber; the figure in the "Wood and Fungus Products Production" line of the Table 2- Wholesale Prices Index Figures Table published by the Prime Ministry State Statistics Institute with 1994=100 base,
Go, Gn: the basic and current indexes of other materials; the figures for the base and current indexes relating to the other materials to be used in the work and to be included in the tender document by the Contracting Entities after determining on the basis of sub sectors from the Table 2- Wholesale Prices Index Figures Table published by the Prime Ministry State Statistics Institute with 1994=100 base; where the Contracting Entities failed or was not able to establish such indexes, the figure in the "General" line of the Table 2- Wholesale Prices Index Figures Table published by the Prime Ministry State Statistics Institute with 1994=100 base,
Mo, Mn: the basic and current indexes of machinery and equipment depreciation; the figure in the "Machine and Equipment Production" line of the Table 2- Wholesale Prices Index Figures Table published by the Prime Ministry State Statistics Institute with 1994=100 base,
In case one or several of the indexes stated above are changed by Prime Ministry State Statistics Institute during the implementation of the contract, the price difference shall be calculated by the new index when it is established for the changed one, if not, by the figure in the "General" line of the Table 2- Wholesale Prices Index Figures Table published monthly by the Prime Ministry State Statistics Institute with 1994=100 base.  
However, though the payment of price difference is stated in the administrative specifications and contract, if the Contracting Entity did not specify a representative coefficient for the a, b1, b2, b3, b4, b5 and c fixed coefficient such that their totals equal to one (1.00) according to the qualifications and requirements of the work, the figure in the "General" line of the Table 2- Wholesale Prices Index Figures Table published monthly by the Prime Ministry State Statistics Institute with 1994=100 base shall apply as the base and current indexes  instead of the above coefficients.

Application Principles
Article 7- The following principles must be observed in price difference calculation:
a) No amendments may be made to the procedures and principles in the contract related with the price difference once the contract is signed.
b) The costs to be paid or deducted in addition to the contract price as a result of the application of these principles are in the form of price difference and do not affect the contract price.
c) These principles shall not apply to works, the costs of which are paid in foreign exchanges or Turkish Lira equivalent of foreign exchanges by calculating exchange differences separately.
d) During the preparation of the progress payments in cases where the index to apply to the progress payment is not revealed, the price difference shall be computed using the previous index. As soon as the new indexes are revealed, the price differences for the following progress payments shall be corrected accordingly.
e) The price differences, such calculated, cover all price increases that might be the subject of price difference payment. Other than this, no price difference shall be paid due to the procedures, the type and amount of the machinery, equipment, material and labor used by the contractor, devaluation of Turkish Lira against foreign exchanges, the increase in the price of the material procured from abroad and other similar reasons.
f) At works, for which an advance payment is made, the amount to be paid to the contractor having deducted the advance from the progress payment is considered as the (An) amount. Where the price difference coefficient (Pn) is smaller than 1, no advance payment shall be deducted from (An) amount.
g) These principles shall apply to work items and/or work groups and the work preparations carried out according to the work program.
h) In case a new unit price is established during the execution of the work for the work item, for which there exists no unit price in the contract and which is requested to be performed by the Contracting Entity, in unit price contracts, this price shall be established according to the market value and conditions of the month in which the price is established. The price computed by dividing the newly established unit price by the execution month price difference coefficient (Pn) is multiplied by the amount of work item and the resulting amount is included in the column "works performed with the contract unit prices" at the progress payment and paid to the contractor as the new work item on the basis of contract. The price difference for this work item is found by calculating over the indexes of the execution month.
Work program and allocation segment
Article 8- The contractors, having signed the contract, shall prepare and have approved by the Contracting Entity a detailed work program showing the work items, monthly works, annual allocations and monthly distribution of these.
In case an allocation in any work program of any month is not spent, the index of the month, in which the work program is not realized, shall continue to apply in the following progress payments until the progress payments become equal to the unspent portion of the allocation.
In case time extension is granted to the contractor due to the forces majeure stated in article 10 of the law no 4735 or when the Contracting Entity's fault caused the delay of the execution of the contract, price difference shall be calculated for works carried out according to the revised work program, which is prepared by the contractor and approved by the Contracting Entity, based on the extended time.
In cases where the contractor fails to prepare the work program and have it approved by the Contracting Entity, the work program is prepared and approved by the Contracting Entity one sided. The contractor is obliged to comply with such prepared and given work program.
Preparation Application
Article 9- Preparation price might be paid to the materials used for the portions of the contracts, where the unit price works and turnkey lump sum contracts are performed together, made according to the unit price contract. However, it is mandatory that the list and the prices of the goods for which the preparation payment is to be made are indicated in the tender document. These materials shall be prepared for the work items in the work program and in the amount sufficient to those works. No preparation payment shall be made for the excessive amounts of the materials.
Price difference shall be calculated according to these principles for the materials prepared according to the above conditions.
Production Increases and decreases
Article 10- On condition that the provisions of the article 8 are considered related with the allocation segments, in cases where increases or decreases in the amount of the production are determined as a result of the interim or final measurement of any production in unit price contracts, the increased or the decreased amount (regardless of the month the production is performed) is valued by the price difference coefficient of the month in which the increase or decrease is finalized so as not to exceed the work completion date.   
Application in the penalty works
Article 11- When the price difference is calculated at works, which failed to receive time extension although the duration expired and which is performed with the permission of the Contracting Entity, the lower of the (Pn) value valid at the end of the expiration date of the duration and the (Pn) value during the period of penalty work shall apply.
Works for which no price difference is envisioned
Article 12- Though the payment of price difference is not envisioned in the administrative specifications and contract of the work tendered, in case the work completion date is postponed by granting time extension due to forces majeure or the failure of the Contracting Entity, price difference may be paid to the work items or work groups, carried out in the postponed period according to the work program, pursuant to these principles on condition that it is stated in the administrative specifications and the contract.
The base index in the price difference calculation means the index of the month in which the work completion date takes place, and the current index means the index of the month in which the progress payment preparation date takes place. The figure in the "General" line of the Table 2- Wholesale Prices Index Figures Table published monthly by the Prime Ministry State Statistics Institute with 1994=100 base shall be considered as the base and current indexes.

Enactment
Article 13- These principles shall enact on 1/1/2003.
Enforcement
Article 14- The Cabinet shall enforce these principles.
#73
LAW ON PUBLIC PROCUREMENT CONTRACTS

Law No: 4735

Approval Date: 05.01. 2002

Official Journal Date/No: 22.01.2002/ 24648



Law No: 4964



(Law on Amendments on Some Laws)



Approval Date: 30.07. 2003



Official Journal Date/No: 15.08.2003/ 25200



LAW ON PUBLIC PROCUREMENT CONTRACTS



CHAPTER ONE

General Provisions

SECTION ONE

Purpose, Scope, Definitions, and Principles

            Purpose

ARTICLE 1.- The purpose of this Law is to establish the principles and procedures that pertain to making and implementing public procurement contracts under Public Procurement Law. 

Scope 

           ARTICLE 2.- This Law shall apply to contracts concluded as result of tender processes carried out by public entities and institutions subject to the Law on Public Procurement in accordance with the provisions of the said Law.

            Definitions

           ARTICLE 3- The definitions as stated in the Law on Public Procurement shall apply in implementation of this Law.

Principles

           ARTICLE 4- In contracts to be made pursuant to this Law, no provisions may be included in a contract contrary to the tender documents.

            Contract provisions shall not be amended, nor shall supplementary contracts be made, other than the cases specified in this Law.

            The parties to public procurement contracts made under this Law shall have equal rights and obligations in implementing the contractual provisions.  Any articles contrary to this principle shall not be included in provisions of either the tender documents or contracts. This principle shall be kept in view in any interpretation of this Law as well as in its implementation.

SECTION TWO

Contract Making

Form Contracts

           ARTICLE 5- Form contracts shall be published in the Official Gazette in order to assure uniformity in implementation of this Law in connection with procurement of goods, services, and works. 

(Annexed: 4964/Article 42) Any contracts to be made by the contracting entities shall be drawn up in accordance with the provisions of the form contract. In procurements of goods and services the contracts customarily prepared by tenderers may be used provided that those contracts are not contrary to the provisions of the form contracts and Authority approves.

Contract Categories

           ARTICLE 6- Consequent to tender processes carried out in accordance with the Law on Public Procurement, contracts shall be made in various categories as stated below:

            a) In procurement of works; turn key lump-sum contracts shall be made over the total tender price for the entire work proposed by the tenderer on the basis of application projects and site lists  thereof.

            b) In procurement of goods or services; lump-sum contracts shall be made over the total tender price proposed by the tenderer for the entire work, the detailed specifications and quantities of which are pre-determined by the contracting entity.

            c) Unit price contracts shall be made over the total price calculated by multiplying the quantity for each work of item specified in the schedule prepared by the contracting entity, with unit prices proposed by the tenderer for each corresponding work of item,on the basis of, preliminary or final projects and site lists thereof along with unit price definitions in procurement of works whereas on the basis of  detailed specifications of  the work involved in procurement of  goods or services.

            Matters That Must Be Covered In the Contracts

           ARTICLE 7.- It shall be mandatory to cover the issues listed below in the contracts  to be made under this Law:

a)     Title, specification, category and quantity of work; description of work in procurement of services.

b)     Name and address of the contracting entity.

c)     Name or business title and address for notification of the contractor.

d)     Information on sub-contractors, if any, and their obligations.

e)     Price, category and duration of contract.

f)       Terms and place of payment; amount and place of advance payment, if any.

g)     Method of payment of price difference, if any, for business under contract.

h)     Statement of cost items that are to be included in the contract price from among transportation, insurance, taxes, duties and charges payable.

i)        Statement of the parties that would pay for cost items from among taxes, duties, and charges payable and other expenses under the contract.

j)        Terms and conditions concerning such auxiliary services as installation, commissioning, training, repair-maintenance, and spare parts.

k)     Amount of performance security and conditions pertaining to returning of it.

l)        Guarantee periods, where any is required, and any conditions pertaining to such guarantee.

m)   The place of performance,and procedure and conditions of delivery and receiving.

n)     Penalties applicable in case of delays.

o)     (Amendment: 4964/Article 43) Force majeure and conditions for granting time extensions, mutual obligations in work increases and decreases which may be made under the scope of the contract

p)     Conditions pertaining to control, inspection and acceptance procedures.   

r)       In procurement of works; conditions pertaining to insurance coverage of works and works site along with control of works and construction liability.

s)     Conditions pertaining to amendments of contract.

t)       Conditions pertaining to termination of contract.     

u)     Contractor's liability pertaining to personnel in which the contractor would   employ under the contract..

v)     Statement that all documents included in the tender documents are attachment to contract

y)      Resolution of disputes.

CHAPTER TWO

Contract Implementation

SECTION ONE

Price Difference, Insurance, Force Majeure, Control, Inspection and Acceptance Procedures

Eligibility for Price Difference

           ARTICLE 8.- Council of Ministers, upon recommendation of The Public Procurement Authority, shall have the authority to establish the principles and procedures governing payment of price differences for different contract categories.

            Any principles or procedures stated in a contract concerning payment of price difference shall not be amended after the contract has been signed.

            Insurance Coverage of Works and Works Site

           ARTICLE 9.- In works contracts; the contractor shall be obliged to take out insurance for all kinds of equipment at works site including any machinery for construction or service along with any materials, vehicles, and facilities as well as completed portions of works against natural disasters such as earthquake, flood, land-slide, storm, fire, and other risks such as theft and sabotage, with such insurance coverage to be valid from the date of commencement of construction to the date of final acceptance, depending on the properties and characteristics of the works involved, as stated in the tender documents. 

            Force Majeures

           ARTICLE 10.- Circumstances that may be considered as force majeure shall be as stated below:

(a)    Natural disasters.

(b)   Legal strikes.

(c)    Epidemic cases.

(d)   Announcement of partial or general mobilization.

(e)    Other similar circumstances that may be determined by the Authority when necessary.

             For the contracting entity to be able to accept any of the circumstances stated above as force majeure, including cases of time extension and contract termination; it shall be absolutely necessary that the concerned case did not arise from the contractor's fault, that it constituted an obstacle in fulfilling the contractual obligations, that the contractor could not afford to remove such obstacle, that the contractor has notified the contracting entity in writing within twenty days as of the date which the force majeure has occurred, and that it has been documented / certified by competent authorities.

Control, Inspection, and Acceptance Procedures

           ARTICLE 11- Inspection and acceptance commissions consisting of at least three persons to be formed by the contracting entities shall perform inspection and acceptance procedures on delivered goods, services or works or on completed work. Inspection and acceptance procedures shall not be performed unless the goods or any work done has been delivered to the contracting entity by the ontractor.

            However, where there is a relevant provision in the contract; the related contracting entity may perform inspections in certain stages and intervals on works requiring production or manufacturing processes, for purposes of determining whether such processes are being carried out in compliance with the quality and specifications set forth in tender documents, with the condition that such inspections shall not in anyway relieve the authorities and responsibilities of inspection and acceptance commissions.

            Partial acceptance may be done for the parts that have been completed under the contract and that are available for use independently.

SECTION TWO

Provisions Concerning Performance Security

            Supplementary Performance Security

           ARTICLE 12.- (Amendment: 4964/Article 44) In contract awards involving price difference, supplementary performance security shall be obtained in the amount of 6 % of the price difference  to be paid; and in cases where the contract price has increased, a supplementary performance security which amounts to 6 % of the increased value shall also be obtained over assets acceptable as security. Supplementary performance security calculated over the price which to be paid as price difference may also be obtained through deductions from remunerations.

Returning of Performance Security and Supplementary Performance Security

           ARTICLE 13.- Once it has been determined that the contractual obligations have been fulfilled in accordance with provisions of contract and tender documents and that the contractor is not involved in debt to the contracting entity in any way in connection with the concerned contract, the performance security and supplementary performance security, if any, shall be returned as follows:

            (a) In works, half of the performance security shall be returned following elimination of the deficiencies and errors, if any, and the approval of minutes of provisional acceptance, and the remaining portion shall be returned upon furnishing of a document from Social Security Institution which certifies having no further connection with and after the minutes of final acceptance has been approved.

            (b) In contracts other than works, once it has been determined that a document from the Social Security Institution which certifies having no further connection with has been submitted; half of the performance security shall be returned in cases where a guarantee period has been envisaged for goods received or work performed and the remaining half shall be returned upon expiration of such guarantee period, while the entire performance security shall be returned in cases where no period of guarantee has been envisaged.

            In case the contractor's debts to the contracting entity or Social Security Institution or taxes owed on wages or payments considered as wages have not been paid until the date of final acceptance in works contracts, and until the date of final acceptance or the date of expiration of guarantee period, if any, in contracts other than works; the performance security shall be converted into money without need for filing protest or obtaining writ and such amounts shall be held against the debts, and remaining amount, if any, shall be  returned to the contractor.

            In case the subject of the contract involves off-the-shelf goods, obtaining a document from Social Security Institution certifying no binding relations shall not be required.

            Securities Not Returned

           ARTICLE 14.- In cases where a deduction pursuant to Article 13 does not need to be made; any letters of guarantee furnished as performance security and not yet returned due to lack of a request (from the contractor) despite a written notice from the contracting entity, within two years counting from the date of approval of minutes of final accounts and final acceptance in works contracts, and from the date of acceptance or the date of expiration of guarantee period, if any, in other contracts; such letters of guarantee shall become void and returned to the issuing bank. Securities in forms other than letter of guarantee shall be credited to Treasury as revenue at the end of their terms.

SECTION THREE

Contract Amendments, Assignment and Termination of Contract

Contract Amendments

           ARTICLE 15.- The contract provisions on matters as stated below may be amended after contract signing , provided that the contract price is not exceeded and that the contracting entity and the contractor mutually agree:

            a) Location of performance of work or place of delivery.

           b) Duration of work and conditions of payment in accordance with such duration provided that it is completed or delivered before its time (as originally specified in the contract).

            Assignment of Contract

           ARTICLE 16.- A contract may be assigned to third parties where absolutely necessary and with written permission from the contracting officer. However, it shall be mandatory for such third parties to take over (the contract) possess the qualifications as originally specified in the tender process.  Furthermore, contract assignments other than those effected consequent to change of business title or charter, a contractor having assigned a contract may not assign or take over still another contract for a period of three years counting from the date of such assignment of contract. Any contracts assigned without due permission, as well as contracts assigned or taken over within three years following the assignment date shall be terminated and provisions of Articles 20, 22, and 26 shall apply to assignors and assignees.

            Contractor's Death, Bankruptcy, Falling Seriously Ill, or Being Arrested or Convicted:

           ARTICLE 17- The provisions as stated below shall apply in case the contractor becomes deceased, bankrupt, falls seriously ill, or is arrested or convicted:

            a) In case the contractor becomes deceased, work already done shall be wound up by terminating the contract, and the performance security and any other receivable due to the contractor shall be handed to inheritors. However, the contracting entity may, where it deems it appropriate, transfer the contract to any willing inheritors bearing the same qualifications (as required in tender documents), provided that they furnish performance security as necessary for the entire commitment under the contract including supplementary security, if any, within 30 days following the date of  death.

            b) In case of contractor's bankruptcy, the contract shall be terminated and action shall be taken in accordance with Articles 20 and 22, except prohibition.

            c) If the contractor enters a situation of being unable to carry out its commitments due to severe illness, being arrested or receiving a freedom-restricting court sentence, then the contract may be proceeded on the condition that the contractor designates a proxy acceptable to the relevant contracting entity within 30 days following the date of the occurance of such situation. If the contractor is deprived of the means to designate a proxy on its own free will, then whomever the matter concerns may request that a trustee be designated instead in accordance with general provisions within the same period of time. In case none of such provisions can be applied, the contract shall be terminated and action shall be taken in accordance with Articles 20 and 22, except prohibition.

            Death, Bankruptcy, Serious Illness, Arrest, or Conviction, in Case the Contractor is a Joint Venture

           ARTICLE 18-  (Amendment: 4964/Article 45) In contracts undertaken by joint ventures; death, bankruptcy, serious illness, becoming arrested or sentenced to freedom-restricting penalty, or dissolution of one of the persons constituting the joint venture shall not be an obstacle to contract effectiveness.   If, however, in a jointly undertaken engagement, one of the contractors has been pointed to the contracting entity as the pilot or the coordinator, then in case of bankruptcy, serious illness, arrest, of freedom-restricting conviction, or dissolution (of the pilot or coordinator firm), depending on whether the pilot or coordinator is a natural or legal person, the contract shall be terminated and action shall be taken in accordance with Articles 20 and 22, except prohibition. In case the pilot or coordinator becomes deceased, the contract shall be annulled with work already done being wound up and the performance security shall be returned. Upon the proposition of the other joint venture partners within 30 days following the date when such state of affairs has emerged, and with consent of the contracting entity, business may be continued by renewing the contract provided that obligations for the business that had (originally) been undertaken by the (previous) pilot or coordinator are fully undertaken, including any security thereof.

            In case of the death, bankruptcy, serious illness, being arrested or sentenced to a freedom-restricting penalty, or dissolution of any partner other than the pilot or coordinator in the joint venture, other partners of the group shall undertake all obligations of that outgoing partner, including performance security, and  carry on the contract.

            Termination of Contract by the Contractor

           ARTICLE 19.- In case the contractor serves notice in writing after the contract  has been signed to the effect that it is unable to perform its obligations for reason of  insolvency, outside of force majeure, also stating the justifications in such notice; performance security along with supplementary security, if any, shall be entered into accounts as revenue, without need for filing a protest, and the contract shall be terminated with any accounts thereof being wound up in accordance with general provisions.

            Termination of Contract by the Contracting Entity

           ARTICLE 20.- The contracting entity shall terminate a contract under the circumstances described below:

            a) In case the contractor fails to perform its obligations in compliance with provisions of the contract and tender documents or fails to complete works within the period as prescribed, and such state of affairs continues to persist despite contracting entity's warning clearly stating reasons for warning and offering at least 20 days' advance notice, with penalty for delay to apply on the basis of the ratio as stated in the tender document.

            b) In case it is determined that the contractor has engaged in deeds or behaviors outlawed as stated in Article 25,

performance security along with supplementary security, if any, shall be entered into accounts as revenue, without need for filing a protest, and the contract shall be terminated with any accounts thereof being wound up in accordance with general provisions.

            Termination of Contract for Reason of Outlawed Deeds or Behaviors Prior to Contract Signing

           ARTICLE 21.- In case it is determined after a contract has been signed that the contractor has engaged in the course of the tender process in deeds or behaviors outlawed under the Law on Public Procurement; performance security along with supplementary security, if any, shall be entered into accounts as revenue, without need for filing a protest, and the contract shall be terminated with any accounts thereof being wound up in accordance with general provisions.

            However, provided that at least 80 percent of the obligations under the contract have been completed and public benefit is seen in having the contract completed, the contracting entity may refrain from terminating the contract and  require the contractor to complete its obligations under the contract,  in case;

            a) There is not sufficient time to carry out a new tender process for the remaining portion of works, because of urgency of business,

            b) It is not possible to have a different contractor carry out the contract

            c) The contractor has engaged in such outlawed deeds or behavior that would not prevent from completion of its remaining obligations.

            Under such circumstances, the contractor shall be obliged to complete its obligations under the contract as required by the contracting entity. In this case, however, action shall be taken against the contractor in accordance with provisions of Article 26 and penalty shall be collected from the contractor in the same amount as the sum total of its performance security and supplementary security amounts, if any. This penalty may be collected through deductions from the contractor's remuneration.

            Dispositions Pertaining To Termination Of Contract

           ARTICLE 22.- The contract shall be considered to have been terminated; as of the date of arrival of the contractor's request for termination of contract to the contracting entity pursuant to Article 19; or as of the date of expiration of the period specified in Paragraph (a) of Article 20; or as of the date of determination of relevant state of affairs pursuant to Paragraph (b) of Article 20 or pursuant to Article 21. The contracting entity shall produce the decision for termination of contract within seven days of the said dates. The contractors shall be notified of such decision within five days following the date of the said decision.

            In case of termination of contract pursuant to Articles 19, 20, or 21, performance security and supplementary security, if any, shall be updated in accordance with monthly wholesale price index published by DIE, the State Institute of Statistics, from the date which such security has been furnished to the date when it is entered into accounts as revenue. The difference between the amount updated and the amount of performance security and supplementary security, if any, shall be collected from the contractor.

            In case security is obtained through deductions from remuneration, while the amount withheld shall be entered into accounts as revenue, the amount of security that corresponds to the amount of works not completed posterior to date of contract termination shall also be collected from the contractor after updating (security) pursuant to the first Paragraph above.

            Any security entered into accounts as revenues shall not be deducted from the debt of the contractor.

            In case of contract termination pursuant to Articles 19, 20, or 21, action shall be taken against contractors in accordance with provisions of Article 26. The contractor shall further be caused to pay compensation for any losses or damages the contracting entity may have incurred due to termination of contract.

            Termination of Contract Due To Force Majeure

           ARTICLE 23.- In case a contract is terminated due to force majeure, the accounts of the contract shall be wound up in accordance with general provisions and  performance security and any supplementary security shall be returned.

             Additional Works to be Made Under the Contract, Work Decreasing and Winding-Up Contract [1]

           ARTICLE 24.-  (Amendment: 4964/ Article 46) In case any work increase is inevitable due to unforeseen reasons, provided that;

a)     work increase is kept within the project subject to the contract,

b)     it is not technically and economically possible to separate additional work from the main contract without burdening the contracting entity,

the contracting entity may have the same contractor perform the work increase up to the amount of 10 % of the main contract's price in turn-key lump-sum works contracts and up to the amount of 20 % of the main contract's price in unit price goods, services and works contracts in accordance with the provisions specified in the original (main) contract and tender documents except the provisions on contract duration.

In works contracts based on unit price, Council of Ministers is authorized to raise this ratio up to the 40 % of the related contract.

In case it is determined that the work can not be completed under these circumstances the accounts (of the contract) shall be wound up in accordance with general provisions without any increase. However, under such circumstances, it shall be compulsory that the entire work be fulfilled in accordance with provisions of tender documents and of contract.

In case it has been determined that the work may be completed with a price  lower than 80 % of the contract price, the contractor shall be obliged to complete the work. In such case, as a reward for the real expenses realized by the contractor and contractor's profit, the 5 % of the difference between 80 % of the (total) contract price and the amount of work performed on the basis of contract prices shall be paid to the contractor over the prices current on provisional acceptance date. 

CHAPTER THREE

Prohibitions and Liabilities

            Deeds and Behaviors Outlawed

            ARTICLE 25.- During the course of implementing a contract, prohibited shall be;

            a) Corrupting any transactions pertaining to the contract through fraud, intrigue, promises, threats, using influence, seeking of personal interest, agreement arranging, malversation,  bribery or through other means or attempting to those

            b) Drawing up or using forged documents or attempting to

            c)  Using adulterated materials, means or methods or engaging in production contrary to rules of science or the trade or (otherwise) deficient or faulty, in process of carrying out business under the contract or making deliveries thereof

            d) Causing damage to the contracting entity in process of performing its obligations under the contract

            e) Using its knowledge and experience to the detriment of the contracting entity or acting in violation of the provisions of Article 29

            f) Failing, outside of force majeure, to perform its obligations in accordance with provisions of contract and tender documents.

            g) Assigning or taking over a contract in violation of provisions of Article 16.

Prohibition from Partcipating in Tenders 

           ARTICLE 26.-  (Amendment: 4964/ Article 47) Those who are determined to have been engaged in deeds or behaviors as specified in Article 25; shall be prohibited from participating in tender processes carried out by all public entities and institutions including the ones stated as exceptions in 2nd and 3rd articles of Law no:4734, for a period of up to two years, not being less than one year, depending on the nature of the said deeds and behaviors. Prohibition decisions shall be taken by the Ministry implementing the contract or by the Ministry which the contracting entity is subordinate to or associated with, or by contracting officers of contracting entities which are not considered as subordinate to or associated with any Ministry, and by the Ministry of Internal Affairs in special provincial administrations and in municipalities and in their affiliated associations, organizations, enterprises.   

            In case the legal person prohibited pursuant to the first Paragraph above happen to be a sole proprietorhip the prohibition shall apply to all partners in that company; while in case of capita) stock company the prohibition shall apply to all shareholders, natural or legal persons, who own more than half of the capital in the subject company. Depending on whether the parties prohibited are natural or legal persons; where they are at the same time partners in another sole proprietorhip , the prohibition shall apply to such companies as well; and where the prohibited parties are shareholders in stock companies, the prohibition shall also apply to such stock companies if the prohibited parties own more than half of the capital in the subject company.

            Those parties that are determined to have engaged in such deeds and behaviors shall not be allowed to participate in any tender processes that may be carried out by the same contracting entity until the date when the decision for prohibition becomes effective.

(Amendment: 4964/ Article 47) Decisions for prohibition shall be produced within latest 45 days counting from the date when deed or behavior that warranted the prohibition decision has been determined to have taken place. The decision for prohibition produced thus shall be forwarded within latest 15 days for publication in Official Gazette and it shall become effective on the date it is thus published. The Public Procurement Authority shall monitor the said decisions and maintain a registry on the parties that have been prohibited from participating in public procurement tender processes.

            In case a contracting entity encounters circumstances warranting a decision to prohibit as stated in Article 25, it shall be responsible for reporting such circumstances to the Ministry which it is sub-ordinate to or associated with.

            Criminal Liability of Contractors

           ARTICLE 27.- Notification of crime shall be filed with the Office of Public Prosecutor against natural and legal persons that have been determined to have engaged in those deeds and behavior that are specified in Article 25 and that also constitute crime under Turkish Criminal Code, along with the partners or proxies of the said parties in the subject business, for purposes of prosecution in accordance with Turkish Criminal Code, even if such determination is made after business (under the contract) has been completed and final acceptance has taken place. Along with the criminal sentence, the court shall also rule that these parties, along with those listed in Article 26, be prohibited from participating in all tender processes that may be carried out by any public entity or institution subject to this Law, for a period of up to three years, not being less than one year and being effective as of the expiration date of prohibition decision which has been produced pursuant to Article 26.

            The courts shall prohibit permanently from participating in public tenders those parties that have received recurring convictions because of their deeds or behaviors outlawed under this Law, along with stock companies in which the said parties own more than half of the capital and sole proprietorships that the said parties own.

            Concerning the parties that have been prohibited pursuant to provisions of this Article and having received court sentences; Office of the Public Prosecutor shall notify the Public Procurement Authority and the occupational organizations for purposes of appropriately updating the records of the said parties in relevant registries. 

            Public Procurement Authority shall advertise court rulings concerning the parties that have been prohibited permanently from participating in public tenders by having the said rulings published in the Official gazette within fifteen days counting from the date of notification.

            Criminal Liability of (Public) Officials

           ARTICLE 28.- (Amendment: 4964/Article 48) Any chairpersons, members and other officials of control and acceptance commissions, works control/inspection officials, or others in charge at any stage of  procurement process; in case they are determined  not to have carried out their duties in accordance with legal requirements in an impartial manner and to have acted in negligent or deficient ways that would cause damages to any one of the parties involved, they shall receive disciplinary penalties pursuant to relevant legislation. Furthermore, depending on the nature of their deeds and behaviors, they shall also be prosecuted under criminal law and, along with any penalty as ruled (by the court), they shall also be caused to compensate in accordance with general provisions for any damages and losses they may have caused any parties to have incurred. Those contracting entity officials who were sentenced due to deeds or behaviors contrary to this Law shall not be charged with any duties that fall under the domain of this Law.

           Public entities or institutions subject to this Law shall not appoint any persons who have received any penalties as ruled by judicial organs because of business that fall in the domain of this Law to any positions in charge of implementing this Law or any other relevant legislation. 

Prohibition of Disclosure of Information and Documents

           ARTICLE 29.- Persons in charge of implementing this Law and those who offer consulting services; shall not disclose any confidential information or documents pertaining to contractor's business or transactions or their technical or financial structures and shall not use them  for their own or any third parties' benefit.  Sanctions stated in Articles 26 and 28 according to relevance shall apply to those who act contrary to this (aforementioned rule).

            Contractor's and Sub-contractor's Liability in Works Contracts

           ARTICLE 30.- Contractors and sub-contractors in works contracts shall be liable successively (severally) for any loss or damage stemming from failure to construct in accordance with technical and trade rules or use of adulterated materials or similar reasons, not only from the date of commencement of construction to the date of final acceptance, but also for a period of fifteen years counting from the date of final acceptance. Contractor and sub-contractors shall be caused to complete and compensate for any such loss or damage pursuant to general provisions, and furthermore provisions of Article 27 shall apply to the said parties.

            Liability of Control / Inspection Officials

           ARTICLE 31.-  Contracting entity officials carrying out control/inspection functions (in works) shall be liable successively (severally) with the contractor for any loss or damage stemming from failure to construct in accordance with technical and trade rules as emergent because of deficient inspection and control, for a period of fifteen years. Furthermore, the provisions of Article 28 shall apply to such officials.

            Liability of Consulting Service Providers

           ARTICLE 32.- For a period of fifteen years; the consultant (service provider) shall be directly liable for loss or damage stemming from design errors, implementation errors, deficiency of control and inspection, erroneous cost estimation, failure to construct in compliance with current legislation, failure to comply with rules of professional ethics, failure to use knowledge and experience to the benefit of the contracting entity, and similar reasons; and successively (severally) liable with the contractor and sub-contractors where the consultant has undertaken control and inspection services on works.

            The consultant shall be caused to complete and compensate for any such loss or damage pursuant to general provisions and furthermore, provisions of Article 27 shall apply to the consultant.

            Liability of Suppliers

           ARTICLE 33.- Suppliers shall be directly liable in the framework of their undertaking for any loss or damage stemming from supplying or using deficient or sub-standard materials or failure to perform obligations in accordance with provisions of contract and tender documents or similar reasons. The supplier shall be caused to complete and compensate for any such loss or damage pursuant to general provisions and furthermore provisions of Article 27 shall apply to the supplier.

            Liability of Service Providers

           ARTICLE 34.- Service providers shall be directly liable in the framework of their undertaking for any loss or damage stemming from selection, supply or use of deficient or sub-standard materials, design errors, implementation errors, deficiency of inspection and control, failure to perform obligations in accordance with provisions of contract and tender documents, or similar reasons. The service provider shall be caused to complete and compensate for any such loss or damage pursuant to general provisions and furthermore provisions of Article 27 shall apply to the service provider.



CHAPTER FOUR

Miscellaneous Provisions

Performance Security

           ARTICLE 35.- In cases where this Law does not contain provisions (relevant to performance security), the provisions of the Law on Public Procurement concerning securities shall apply.

            Cases Where (Relevant) Provisions Are Absent

           ARTICLE 36.- In cases where this Law does not contain relevant provisions, the provisions of the Code of Obligations shall apply.

            Notification

           ARTICLE 37.- For notifications to be served in case there is no relevant provision  in this Law, the provisions of the Code of Notification shall apply.

Amendments

           ARTICLE 38.- Amendments to provisions of this Law shall only be arranged through annexing provisions or making changes.



CHAPTER FIVE

Final Provisions

Provisions Not Applicable

           ARTICLE 39.-  a) Provisions of Law No: 2886, the State Tender Act dated September 8, 1983 shall not apply to contracts made in the context of contract awards made pursuant to the Public Procurement Law.

            b) Provisions in other legislation stipulating exemption from Law No: 2886 the State Tender Act dated September 8, 1983, and any provisions not compliant with this Law, shall not apply.

            c) (Annexed: 4964/Article 49) For contracts to be made under the Law no:2985, on Collective Housing, Council of Ministers is authorized to establish the rules and principles on special contracts, provided that criminal sanctions and prohibition from participation in tenders are subject to this Law.

Preparation of Form Contracts

           INTERIM ARTICLE 1.- The Public Procurement Authority shall prepare the form contracts to be issued for purposes of implementation of this Law, having obtained opinion of relevant entities and institutions, and publish in the Official Gazette, by the time this Law is scheduled to become effective.

Contracting entities shall continue to implementing the existing contract principles and provisions until they (form contracts) come into force.

            Enforcement

           ARTICLE 40.- This Law shall become effective on January 1st, 2003.

            Execution

           ARTICLE 41.- Council of Ministers shall execute this Law. 

            Provisions of Law no: 4964 not applicable to the Law no: 4735 on Public Procurement Contracts

INTERIM ARTICLE 1.- Standard tender documents, form contracts and regulations need to be rearranged due to the amendments on the Laws no:4734 and 4735 made by this Law shall be prepared by Authority within 60 days as of publication date of this law and shall be put into force. Arrangements made by this law on monetary limits in Law no: 4734 and newly added monetary limits shall be updated by Authority within the framework of the principles of article 67 of Law no: 4734 as to the date 1.1.2003, by considering those limits were current on 22.01.2002. Contracting entities shall continue to implementing the provisions of existing principles, procedures and regulations until the above mentioned arrangements become effective. 

Principles and procedures need to be prepared and become effective due to the amendments made on 3rd and interim 4th articles of Law no:4734 shall be prepared within 30 days as of publication date of this law and put into force. Till those arrangements have been published, contracting entities shall continue to implementing the principles and procedures which had been prepared and become effective based on formerly executed 3rd and interim 4th articles of Law no: 4734 prior to amendments made by this law. Works procurements, in which the institutions benefiting from the exception provision in paragraph (g) of the 3rd article of Law no: 4734 are contractors under contracts, shall be subject to the exception provisions proposed in the same paragraph for a period of ten years.



ARTICLE 50.- Article 41 of this law shall become effective on January 1st, 2004, while the others shall come into force on publication date.



ARTICLE 51.- Council of Ministers shall execute this Law. 

#74
Public Procurement Law



CHAPTER I



General Provisions



SECTION I



Application Principles



Purpose



Article 1- The purpose of this law is to establish the principles and procedures to be applied in procurements held by all public entities and institutions governed by public law or under public control or using public funds.



Scope



Article 2- Any procurement of goods, services and works, the cost of which is covered by any kind of resources that are at the disposal of the contracting entities mentioned below shall be executed in accordance with the provisions of this Law:



a) Departments included in the general budget, annexed budget, special provincial administrations and municipalities and their related revolving funds organizations, associations, legal entities,



b) (Amendment: 4964/Article1) State economic enterprises, consisting of public corporations and state economic establishments,



c) (Amendment: 4964/Article1) Social security establishments, funds, entities of legal personalities that are established in accordance with special laws and that are assigned with public duties (except for professional organizations and foundation institutions of higher education) and establishments with independent budgets,



d) (Amendment: 4761) Any institutions, organizations, associations, enterprises and corporations which more than half of their capitals, directly or indirectly, together or separately are owned by those stated in items (a), (b) and (c)



e) The construction tenders of banks within Law No: 4603.



(Amendment: 4964/Article 1) However, Saving Deposit Insurance Fund and banks whose shares are partially or fully owned by this Fund and banks covered by Law No: 4603 (excluding the construction tenders mentioned in paragraph (e) and enterprises, establishments and corporations who carry out activities in the energy, water, transportation and telecommunication sectors are out of the scope of this Law.



Exceptions



Article 3- (Amendment:4964/Article 2)



a) Procurements of agriculture and livestock products, by entities included within the scope of this Law, directly from the producer or its partners in order to process, utilize, improve or sell pursuant to the establishment purpose or regulations of such entities and service procurements to be made from Development Cooperatives of Forest Villages pursuant to Law No:6831, Forest Law, and from villagers.



b) Procurements with regard to defence, security and intelligence pursuant to related legislation which requires to be treated confidentially as approved by the contracting officer for each tender; involving tools, arms, military materials and equipments, systems and war materials such as aircraft, helicopter, ships, submarines, tanks, panzer, rockets, missiles and tenders for their research, development, training, manufacturing, modernization, software and ammunition and their related goods and services aiming at military expedition stocks, maintenance, operation and maintaining, and procurement of services, tools, equipment and systems within the scope of state security and of intelligence.



c) (Amendment: 5148/Article2) Procurements of goods, services or works, which are to be realized with foreign financing pursuant to international agreements, and in the financing agreement of which is stated that different tender procedures and principles will be applied; all kinds of consultancy and loan graduating services with regard to borrowings from international capital markets; procurement of goods and services to be made by Republic of Turkish Central Bank relating to production and printing of banknotes and valuable documents; any kind of procurement for consultancy services in privatization implementations pursuant to Law no: 4046, dated 24.11.1994; procurements of goods and services related to commercial activities by enterprises, undertakings and companies operate in the field of air transport,



d) Procurements of goods or services and works of organizations of contracting entities in foreign countries; goods or service procurements which necessarily to be made in place for means of transport during their presence in foreign countries.



e) For the institutions that are in the scope of this law; the goods and services produced by punishment execution institutions, the institutions of jails workhouses affiliated to Ministry of Justice, by rest homes and orphanages attached to the Social Service and Child Care Institution, by schools and centres involving production attached to Ministry of Education,by institutes and breeding stations attached to the Ministry of Agriculture and Village Affairs and by Prime Ministry's Press Agency on their own to be purchased from the related institutions, the goods and equipments from the General Directorate of State Supply Office which are in the principal status of State Supply Office procurements from Republic of Turkey General Directorate of State Railways for freight, passenger and port services, procurements from General Directorate of Liquidation Works Revolving Fund Administrations



f) Necessary purchases of goods and services for research and development projects executed and supported by national research and development institutions



g) Goods and service procurements of the institutions listed in sub-paragraphs (b) and (d) of first paragraph of second article, to be made in order to cover the needs relating to direct producing of goods and services or principal activities, within their commercial and industrial activities, the estimated costs and contract prices of which do not exceed two trillion three hundred billion Turkish Liras (two trillion nine hundred twenty eight billion fourteen million Turkish Liras)* excepting those financed by treasury guarantee or by means of transferring directly from the transfer order of budget,



h) Service procurements by contracting entities that are under the scope of this Law with a view to providing diagnosis and cure for the persons entitled pursuant to their special legislation and purchasing of drugs and medical supplies with prescription during outpatient treatment by persons whose treatments are carried out by the entities



shall not be governed by this Law except prohibition and criminal provisions.



Definitions



Article 4- During the application of this Law, the terms used shall have the following meanings:



Goods: All procured means of necessity and movables and immovables, together with the rights thereof.



Services: (Amendment: 4964/Article 3) relating to maintenance and repair, transportation, communication, insurance, research and development, accounting, market surveys and polls, consultancy, architecture and engineering, surveying and project, map and cadastre, development application, development plan in any scale, promoting, broadcasting and publication, cleaning, catering, meeting, organisation, exhibition, guarding and security, professional training, photography, film, intellectual and fine arts, computer systems and software services, lease of movable and immovable properties and the rights thereof, and other similar services,



Works: All construction works such as buildings, roads, railways, highways, airports, docks, harbours, shipyards, bridges, tunnels, subways, viaducts, sports facilities, infrastructure, pipelines, communication and energy transmission lines, dams, power plants, refineries, irrigation facilities, soil improvement, flood-prevention and pickling; and their related works of installation, manufacture, preparation of site materials, transportation, completion, large scale-repair, restoration, landscaping, drilling, demolition, reinforcing and assembly works and similar construction works,



Supplier: Natural or legal persons, or joint ventures consisting of those persons submitting tenders for procurement of goods.



Service Provider: Natural or legal persons, or joint ventures consisting of those persons submitting tenders for service procurements.



Consultant: Service providers, who use their knowledge and experience for benefit of the contracting entity, who have no organic link with the contractors whom they provide consultancy services for, who do not gain anything other than the due consultancy fee from the contracting entity, and who provide the consultancy services.



Works Contractor: Natural or legal persons or joint ventures consisting of those persons submitting tenders for works procurements.



Candidate: Natural or legal persons or joint ventures consisting of those persons applying for pre-qualification.



Joint Venture: (Amendment: 4964/ Article 3) Partnerships or consortia established by mutual agreement of more than one natural or legal person in order to participate in a tender.



Tenderer: The supplier, service provider or works contractor submitting tenders for contracts of goods, services or works.



Domestic Tenderer: (Amendment:4964/Article 3) Real persons who are the citizens of Republic of Turkey and legal entities established in accordance with the Laws of Republic of Turkey



Contractor: The tenderer, who is awarded and signs the contract,



Contracting Entity: Procuring entities and institutions which are within the scope of this Law.



Contracting Officer: (Amendment:4964/Article 3) The personnel or boards of the contracting entity who have authority and responsibility to spend and to carry out procurement proceedings and officers to whom the concerned power has been transferred properly.



Request Documents (for Participation): The documents submitted by a candidate for pre-qualification in the application of Restricted Procedure, for the evaluation of his/her qualifications.



Tender Document: With regard to the procurement of goods, services or works that are the subject matter of the tender; the documents including administrative specifications specifying the instructions to tenderers, and the project descriptions together with technical specifications, draft contract and other required documents and information.



Preliminary Design: In accordance with the absolute necessity program of a certain structure, the design consisting of one or more solutions without necessary land and soil surveys where the information is obtained from the existing maps and the plans, cross-sections, views and profiles are determined on the basis of the available data including environmental impact assessment and feasibility reports,



Final Design: In accordance with the approved preliminary design of a certain construction, the design with possible land and soil surveys have been undertaken, where the construction elements have been measured and dimensioned and construction system and equipment and technical specifications have been indicated,



Application Project: In accordance with approved final design of a certain construction, the design on which all kinds of details of the construction are indicated.



Survey Project: (Annexed: 4964/Article 3) Report and scaled project of existing status of cultural assets and their close surroundings.



Restoration Project: (Annexed: 4964/Article 3) Report and project of interference method brought out for repair, authentic function and reuse of cultural assets.



Restitution Project: (Annexed: 4964/Article 3) Proposal project covering the analysis of cultural assets and their close surroundings, comparison with the similar structures, documents and drawings related to authentic or to a specific era thereof.



Procurement: The procedure which involves the award of a contract relating to purchase of goods, services or works, to one selected tenderer in accordance with the procedures and conditions laid down in this Law, and which is completed with signing of the contract following the approval of the contracting officer.



Tender: The price offer together with the document and/or information submitted by a tenderer to contracting entity for the procurement carried out pursuant to the provisions of this Law.



Open Procedure: The tender procedure where all tenderers are allowed to submit their tenders,



Restricted Procedure: The tender procedure where following a prequalification process, only the tenderers who are invited by the contracting entity can submit their tenders,



Negotiated Procedure: A procedure which can be employed under the conditions set forth in this Law, in which the procurement process is conducted in two stages, and the contracting entity negotiates the technical details, performing procedures and in certain cases the contract price of the procurement with the tenderers.



Direct Procurement: A procedure to be carried out in the cases specified in this Law which involves the direct procurement of the necessities, through negotiating technical terms and price of the procurement with the tenderers invited by the contracting entity,.



Contract: Written agreement between the contracting entity and the contractor for the procurement of goods, services or works.



Authority: Public Procurement Authority (PPA)



Board: Public Procurement Board (PPB)



Basic Principles



Article 5- In tenders to be conducted in accordance with this Law, the contracting entities are liable for ensuring transparency, competition, equal treatment, reliability, confidentiality, public supervision, and procurement of needs are being carried out under appropriate conditions and in a timely manner, and for the efficient use of resources.



Unless there is a natural and justifiable connection between them purchase of goods, services and works cannot be consolidated in the same procurement..



Goods, services or works to be procured cannot be divided into lots with the intention of avoiding threshold values.



For the procurements to be held in accordance with this Law, the principal procurement methods are open and restricted procedures. The other methods may be used under the special conditions set out in the Law.



The procurement proceedings shall not be initiated unless there is a sufficient budget allocation.



(Amendment: 4964/Article 4) In accordance with the related legislation, for the works requiring an Environmental Impact Assessment (EIA) Report, a positive EIA report must be obtained before the initiation of procurement proceedings. However, in works procurements to be made urgently due to natural disasters, EIA report shall not be required.



Tender Commission



Article 6 – The contracting officer shall assign a tender commission, which consists of at least five members and in odd numbers, including one chairperson, at least four personnel of the related contracting entity provided that two of them are experts on the subject matter of the tender, a financial officer in cases of general budget and annexed budget entities, and in case of other entities a personnel responsible for accounting and finance, together with its substitute members.



(Amendment: 4964/Article 5) The contracting entity, in the absence of personnel in adequate number or qualification, may invite experts to the commission, from other contracting entities which are in the scope of this Law.



In order to allow for the required examinations, each member of the commission shall be provided with a copy of the records of procurement proceedings, within three days following the invitation or announcement.



The tender commission shall convene with no absentees. The commission decisions shall be taken by majority voting. Abstention is not allowed in decisions. The chairman and members of the commission are responsible for their votes and decisions. Dissenting members have to write down their justifications in the records of commission minute and sign it.



The decisions taken by the tender commission and the minutes kept shall be signed by the chairperson and members of the commission, indicating their names, surnames and titles.



Procurement Proceedings Dossier



Article 7- A record of procurement proceedings shall be kept for all procurements. This record of procurement proceedings shall include the certificate of approval and its attached priced bill of quantities relating to the estimated cost obtained from the contracting officer, the tender documents, the advertisement texts, the tenders or the applications and other documents submitted by candidates or tenderers, and all documents relating to the procurement process such as minutes and decisions of the tender commission.



SECTION II



Rules on Participation



Threshold Values



Article 8- (AMMENDMENT:4761/Article 12) Taking into consideration the estimated cost, the threshold values that shall be applicable for the implementation of Articles 13 and 63 of this Law are as follows:



a) Three hundred billion Turkish Liras for procurement of goods and services by the contracting entities operating under the general or the annexed budget (350 billion 31 million Turkish Liras)*



b) Five hundred billion Turkish Liras for procurement of goods and services by other contracting entities within the scope of the PPL (583 billion 385 million Turkish Liras)*



C) Eleven trillion Turkish Liras for the works contracts by any of contacting entities covered by this Law (12 trillion 834 billion 470 million Turkish Liras)*



(Abolished, last paragraph: 4761/Article 12).



Estimated Cost



Article 9- (Amendment:4964/ Article 6) Prior to the procurement proceedings of goods, services or works, the contracting entity shall conduct all necessary price investigations and shall determine an estimated cost excluding the value added tax and shall be indicated on a calculation chart with its justifications. Estimated cost shall not be stated in tender or pre-qualification advertisements, and shall not be explained to tenderers or to the others who do not have any formal relationship with the tender proceeding.



Rules on Qualification



Article 10- The tenderers participating in the procurement proceedings may be required to submit the following information and documents, for evaluation of their economic, financial, professional and technical qualifications:



a) For evaluation of the economic and financial standing;



1) Bank statements relating to the financial standing of the tenderer,



2) (Amendment:4964/Article 7) The balance sheet of the tenderer which is obligatorily to be published in accordance with the related legislation, or required sections of the balance-sheet, if those are not available, equivalent documents.



3) A statement of the tenderer's overall turnover,or documents indicating the volume of the work being carried out and completed by the tenderer relating to the subject matter of the procurement proceedings.



b) For the evaluation of professional and technical qualifications;



1) Documents proving that the tenderer is registered to the related chamber in accordance with the relevant legislation, and is legally eligible to submit tenders,



2) (Amendment:4964/Article 7) Documents demonstrating the experience of the tenderer in relation to the subject of the procurement in the public or private sector, within the last five years in case of procurement of goods and services, and within the last fifteen years in case of procurement of works in the amount equalling to at least 70% of the contract value realised, or 50 % of the contract value monitored or managed and accepted as free from fault by the contracting entity in proving its experience in similar jobs,



3) Documents relating to the production and/or manufacturing capacity, research-development activities and quality assurance practices of the tenderer,



4) Information and/or documents relating to the organisational structure of the tenderer, proving that he employs or will employ adequate number of staff in order to fulfil the subject matter of the procurement,



5) In cases of procurement of services or works, the documents demonstrating the educational and professional qualities of the executives and the technical staff of the tenderer,



6) Documents relating to facilities, machinery, devices and other equipment required for fulfilment of the work that is the subject of the procurement proceedings,



7) Documents relating to the technical staff or technical institutions responsible for quality control, whether they are directly attached to the tenderer or not,



8) Certificates granted by internationally recognized quality control institutions accredited in accordance with the rules, certifying the conformity of the work in question with the relevant specifications and standards,



9) In case requested by the contracting entity, samples, catalogues and/or photographs of the goods to be supplied for the confirmation of their accuracy,



The information or documents that will be required for qualification evaluation proceedings, in accordance with the characteristics of the subject of the procurement, shall be specified in the tender documents or in the advertisements or invitations relating to pre-qualification.



(Annexed: 4761/ Article 13) (Amendment: 4964/ Article 7) Among the documents which are defined under the sub item no:2 of item no: (b) in the first paragraph, the ones for construction or construction related service duties, the real person should be either an architect or an engineer among the staff who are employed to carry out auditing or management duties. The documents, which will be obtained through completion of work, management and auditing, can not be used by persons apart from the individuals and institutions who are the owners of the documents and can not be transferred, rented and sold. In order to participate in a tender, legal entities, which are established or participated in by the owners of this document, should have more than half of the shares of the legal entity, It is obligatory to request this share requirement in every tender and to maintain the share during the guarantee period. The documents which will be obtained through management activities, are taken into consideration maximum 1/5 rate.



Any tenderer shall be excluded from the procurement proceedings who;



a) is bankrupt or is being wound-up, whose affairs are being administered by the court, who has entered into an arrangement with creditors, who has suspended business activities or who is in any analogous situation arising from a similar procedure under his own national laws and regulations;



b) is the subject of proceedings for a declaration of bankruptcy, for an order of compulsory winding up, or administration of court due to his debts to creditors or of any other similar proceedings under his own national laws and regulations,



c) has not fulfilled obligations relating to the payment of finalised social security contributions in accordance with the legal provisions of the country in which he is established or those of Turkey,



d) has not fulfilled obligations relating to the payment of finalised taxes in accordance with the legal provisions of the country in which he is established or those of Turkey,



e) has been convicted of an offence concerning his professional conduct by a judgement of a competent court within the five years preceding the date of the procurement proceedings.



f) are established, to be involved in misconducts by appropriate means of proof by the contracting entity that are against the work ethics or professional ethics during a work he carried out for the contracting entity, within the five years preceding the date of the tender



g) has been prohibited from professional activity by the chamber where he is registered in accordance with the relevant legislation, as of the date of the tender,



h) fails to submit the information and documents specified in this article or it is established that he/she has submitted misleading information and/or false documents,



i) has been participated in procurement proceedings in spite of prohibition according to Article 11,



j) are established to be involved in prohibited conducts and actions laid down in Article 17.



Ineligibility



Article 11- The following persons or entities cannot participate in any procurement, directly or indirectly or as a sub-contractor, either on their own account or on behalf of others:



a) those who have been prohibited temporarily or permanently from participating in public procurements in accordance with this Law and the provisions of other laws; those who have been convicted of crimes mentioned in Anti-Terror Law No: 3713 and organised crimes,



b) those whom the relevant authorities have been decided that they have been involved in fraudulent bankruptcy,



c) the contracting officers of the contracting entity carrying out the procurement proceedings, and the persons assigned in boards having the same authority,



d) those who are assigned to prepare, execute, complete and approve all procurement proceedings relating to the subject matter of the procurement held by the contracting entity.



e) The spouses, relatives up to third degree and marital relatives up to second degree, and foster children and adopters of those specified under paragraph (c) and (d).



f) The partners and companies of those specified under paragraph (c), (d) and (e) (except for joint stock companies where they are not a member of the board of directors or do not hold more than 10 % of the capital)



The contractors providing consultancy services for the subject matter of the procurement cannot participate in the procurement of such work. Similarly, the contractors of the subject matter of the procurement cannot participate in procurements held for the consultancy services of such work. These prohibitions are also applicable for the companies with which they have a partnership and management relation and for joint stock companies where they own more than half of the capital and for the companies where more than half of the capital is owned by above-mentioned companies.



(Amendment: 4964/Article 8) Whatever their purposes of establishment are, the foundations, associations, unions, funds and other entities included within the body of the contracting entity carrying out the procurement, or related with the contracting entity and the companies to which such entities are partners, cannot participate in the procurement held by these contracting entities.



The tenderers who participate in the tender proceedings despite these prohibitions shall be disqualified, and their tender securities shall be registered as revenue. Moreover, in case the contract is awarded to one of those tenderers due to failure in detecting such situation during evaluation stage, then the tender proceedings shall be cancelled and tender security shall be registered as revenue.



Specifications



Article 12- Preparation of administrative and technical specifications specifying all characteristics of the goods, services and works that constitute the subject matter of the procurement by the contracting entities is essential. However, in cases where contracting officer approves that preparation of technical specifications by contracting entity is impossible due to the characteristics of the goods, services or works, it may be outsourced, in accordance with the provisions of this Law.



The technical criteria for the goods, services and works to be procured shall be specified in the technical specifications, which constitute an integral part of the tender documents. The specified technical criteria shall aim efficiency and functionality, shall not consist of elements impeding competition and shall ensure equal opportunities for all tenderers.



Technical specifications may, where possible, include arrangements to ensure conformity with national and/or international technical standards. Technical characteristics and definitions shall be set forth in these specifications. No specific brand, model, patent, origin, source or product can be specified, and no feature or definition indicating any brand or model, can be included.



However, in case where no national and/or international standards exist or where it is not possible to establish technical characteristics; brand or model can be specified provided that "or equivalent" phrase is stated.



Procurement Announcement Rules and Time Limits



Article 13- (Amendment: 4964/Article 9) Giving all tenderers sufficient time to prepare their tenders;



a) Procurement with estimated costs equal to or exceeding the threshold values stated in Article 8, shall be advertised by publishing in the Official Gazette, at least once, provided that;



1. Notices of procurements to be conducted by open procedure shall be published not less than forty days prior to deadline for the submission of tenders,



2. Pre-qualification notices of procurements to be conducted by restricted procedure shall be published not less than fourteen days in advance of the deadline for the application to pre-qualification.



3. Notices inviting candidates in a negotiated procedure shall be published not less than twenty-five days prior to the deadline for the submission of tenders.



In procurements to be conducted by restricted procedure whose estimated costs equal to or exceeding the threshold values, it is compulsory to provide a letter of invitation to tender, not less than forty days in advance of the deadline for the submission of tenders to candidates that are qualified as a result of the pre-qualification proceedings.



b) For the procurements with estimated costs below the threshold values given in Article 8,



1) The notices of procurements to be conducted for the procurement of goods or services with an estimated cost of up to thirty billion Turkish Liras (thirty-eight billion one hundred and ninety-one million Turkish Liras)* and for the procurement of works with an estimated cost of up to sixty billion Turkish Liras (seventy-six billion three hundred eighty-two million Turkish Liras) * shall be published at least once in not less than two newspapers being issued where the procurement is to be held and the work is to be performed, minimum seven days in advance of the deadline for the submission of tenders.



2) The notices of procurements to be conducted for the procurement of goods or services with an estimated cost between thirty billion Turkish Liras (thirty-eight billion one hundred and ninety-one million Turkish Liras) * and sixty billion Turkish Liras (seventy-six billion three hundred eighty-two million Turkish Liras)* and for the procurement of works with an estimated cost between sixty billion Turkish Liras (seventy-six billion three hundred eighty-two million Turkish Liras)* and five hundred billion Turkish Liras (six hundred thirty-six billion five hundred twenty-four million Turkish Liras)* shall be published at least once in the Official Gazette and in one of the newspapers being issued where the work is to be performed minimum fourteen days in advance of the deadline for the submission of tenders.



3) The notices of procurements conducted for the procurement of goods or services with an estimated cost above sixty billion Turkish Liras (seventy-six billion three hundred eighty-two million Turkish Liras)* and below the threshold value, and for the procurement of works with an estimated cost above five hundred billion Turkish Liras (six hundred thirty-six billion five hundred twenty-four million Turkish Liras)* and below the threshold value shall be published at least once in the Official Gazette and in one of the newspapers being issued where the work is to be performed minimum twenty-one days in advance of the deadline for the submission of tenders.



In procurements to be conducted by restricted procedure with estimated costs below threshold values established in Article 8, it is compulsory that pre-qualification notices be published not less than seven days in advance of the deadline for the application to pre-qualification in accordance with the procedures in paragraph (b), excepting time limit, and that invitation letters (to tender) be sent to the candidates who are qualified as the result of pre-qualification proceedings, prior to tender date according to the time limits in paragraph (b).



PPA is competent to determine which of these procurement notices will be announced furthermore through "Media Announcement Institution" in one of the newspapers delivered nationwide (delivered in Turkey)



There where no newspaper is issued in the place of the procurement to be held, the notices shall be displayed on the notice boards of the related contracting entity, government and municipality buildings and announced by municipal facilities. These proceedings shall be minuted.



Apart from the above-mentioned compulsory announcement of notices, the contracting entities may also advertise the procurement notices by means of other newspapers or publications having national and international circulation, data processing networks or electronic media (internet), depending on the significance and characteristics of the procurement. However, where international announcement of notices is required, the above minimum time limits shall be increased by twelve days.



Joint ventures



Article 14- (Amendment: 4964/ Article 10) Joint ventures may be established by more than one natural or legal person either in the form of a business partnership or as a consortium. Members of a business partnership carry out the whole business jointly having equal rights and responsibilities while members of consortium carry out the business separating their rights and responsibilities according to their expertise field for the purpose of performing relevant parts of the business. Business partnerships may participate in any kind of tender. However, in cases where different expertises are needed, the contracting entities shall indicate in tender documents whether the consortia are allowed or not to submit tenders. At the tender stage, the joint venture shall be asked to submit an agreement indicating the mutual agreement of the parties to form a business partnership or a consortium. The pilot partner and the coordinator partner shall be specified in business partnership agreements and in consortium agreements respectively. In case the contract is awarded to the business partnership or consortium, a notary-certified business partnership or consortium contract shall be submitted prior to signing of the contract. In both business partnership agreement and contract, it has to be stated that the natural or legal persons setting the business partnership are jointly and severally liable in the fulfilment of the commitment, whereas in consortium agreement and contract it has to be clarified which part of the business has been committed by natural or legal persons setting the consortium and they would ensure the coordination among them through coordinator partner in fulfilling the commitment.



Sub-contractors



Article 15- Where it deemed necessary because of the characteristics of the subject matter of the procurement, the tenderers may be asked, to specify the portions of the contract which they plan to assign to sub-contractors at the tender stage,,and submit the list of the sub-contractors for the approval of the contracting entity prior to the signing of the contract. However, in such a case, the liabilities of the sub-contractors with regard to the portion of the contract assigned to them shall not release the contractor from its own liabilities.



Cancellation of tender prior to the pre-determined time for submission of tenders (Amendment: 4964/ Article 11)



Article 16- The procurement procedures may be cancelled at any time prior to the pre-determined time for submission of tenders, in cases where considered necessary by the contracting entity or where it is established that the documents included in the tender document contain items preventing the performance of the tender, which are impossible to correct.



In such a case, the tenderers shall be promptly notified of the cancellation, together with the reasons thereof. Those who have already submitted their tenders shall be notified of the cancellation with a separate notice. In case of cancellation of the tender procedures, all submitted tenders shall be deemed rejected, and shall be returned unopened to the tenderers. The tenderers cannot make any claims against the contracting entity because of the cancellation of the tender proceedings.



In case the cancellation of procurement, it may be reopened tenders by reviewing the reasons for cancellation.



Prohibited acts or conducts



Article 17- The following acts or conducts are prohibited in tender proceedings:



a) to conduct or attempt to conduct procurement fraud by means of fraudulent and corrupt acts, promises, threats, unlawful influence, undue interest, agreement, malversation, bribery or other actions,



b) to cause confusion among tenderers, to prevent participation, to offer agreement to tenderers or to encourage tenderers to accept such offers, to conduct actions which may influence competition or tender decision,



c) to forge documents or securities, to use forged documents or securities or to attempt these.



d) to submit more than one tender by a tenderer on his own account or on behalf of others, directly or indirectly, as the principal person or as representative of others, apart from submitting alternative tenders



e) To participate in procurement proceedings although prohibited pursuant to Article 11.



Provisions stated in Chapter 4 of this Law shall apply to those who have been involved in prohibited acts or conducts.



CHAPTER II



Procurement Process



SECTION I



Procurement Procedures and Application



Applicable procurement procedures



Article 18- In procurement of goods, services and works by contracting entities, one of the following procedures shall be applied:



a) Open procedure,



b) Restricted procedure,



c) Negotiated procedure,



d) (Abolished: 4964/Article 12)



Open procedure



Article 19- Open procedure is a procedure where all tenderers can submit their tenders.



Restricted procedure



Article 20- Restricted procedure is a procedure in which tenderers who are invited following pre-qualification by the contracting entity, can submit their tenders. Procurement of goods, services or works may be conducted by restricted procedure where open procedure is not applicable due to the complexity of the nature of the subject and/or the requirement for high technology.



(Second paragraph abolished:4964/Article13)



(Amendment: 4964/Article 13) Pre-qualification evaluation shall be carried out in accordance with the qualification criteria, which are established pursuant to Article 10 and specified in the pre-qualification documents and in the pre-qualification notices. Those who fail to meet the minimum requirements specified in these documents shall not be accepted as qualified. (Last sentence abolished: 4964/Article13)



(Amendment: 4964/Article 13) The candidates who fail to qualify in the pre-qualification evaluation shall also be notified with a written notice of the grounds for not being accepted as qualified. The procurement shall be concluded after the evaluation of the tenders in accordance with the evaluation criteria that are designed in accordance with Article 40 in a way to avoid any impediment to competition depending on the nature of the work and that are specified in the tender documents and in the letter of invitation. In case the number of tenderers that can be invited to submit tenders is less than five or the number of tenderers that submit tenders is less than three, the procurement shall be cancelled.



In case of the cancellation of procurement due to the number of tenderers being less than three, the procurements proceedings may be concluded by reviewing the tender documents and eliminating the deficiencies and errors, if any; and by re-inviting all pre-qualified tenderers.



Negotiated procedure



Article 21- Negotiated procedure may be applied, where;



a) no tender is submitted in open or restricted procedures,;



b) it is inevitable to conduct the tender procedures immediately, due to unexpected and unforeseen events such as natural disasters, epidemics, cases entertaining risk as to lives or properties or events that could not be predicted by the contracting entity,



c) it is inevitable to conduct the tender procedures immediately, due to occurrence of specific events relating to defence and security,



d) the procurement is of a character requiring a research and development process, and not subject to mass production,



e) due to specific and complex characteristics of the works, goods or services to be procured, it is impossible to define the technical and financial aspects clearly.



f) (Annexed:4964/Article14) Product good, material and service procurements by contracting entities with estimated costs of up to fifty billion Turkish Liras (sixty-three billion, six hundred and fifty-two million Turkish Liras)*



(Amendment: 4964/Article 14) In the cases set forth in paragraphs (b), (c) and (f) the advertisement of the procurements is not mandatory. However, at least three tenderers shall be invited to the tenders to be conducted in accordance with those said paragraphs.



In case of advertising the procurement, the advertisement notice shall indicate that negotiations will be carried out with candidates operating in the field of the subject matter of the procurement and who are accepted as qualified by the contracting entity. In both advertised and unadvertised cases, negotiations shall be carried out only with those who qualify in accordance with the evaluation criteria that are set out by the contracting entity in conformity with Article 10 and specified in the tender documents.



(Annexed: 4964/Article 14) In procurements to be conducted in accordance with the paragraphs (a), (d) and (e), first the tenderers shall submit their initial proposals, which do not include prices, for aspects such as technical details and realization methods of the contract that is the subject of the tender. The tender commission shall consult to and negotiate with each tenderer on the best methods and solutions for the procurement of the needs of the contracting entity. After the clarification of the conditions as a result of the technical consultations, the tenderers that have demonstrated their capacity and capability to meet all these conditions shall be asked to submit their final offers including the tender price based on a reviewed and clarified technical specification.



In the cases stated in (a), (b) and (c), the procurement proceedings shall be concluded after a price negotiation based on the final offers.



In negotiated procedures carried out in accordance with (a), (d) and (e), the procurement proceedings shall be cancelled in case the number of tenderers submitting tenders is less than three.



(Annexed: 4964/Article14) In procurements of goods to be conducted under the scope of paragraph (f), signing of contract and receiving the performance security are not obligatory, provided that the goods are delivered within the time of contract signing and this is approved by the contracting entity.



Direct procurement



Article 22- (Amendment: 4964/Article 15) The method of direct procurement may be applied in the following cases, without advertising and without receiving any securities:



a) when it is established that the needs can be met from only one natural or legal person,



b) in case only one single natural or legal person has exclusive rights with regard to the need in question,



c) procurement of goods and services which are necessarily supplied from the real or legal person who is the initial supplier/ service provider, to ensure compatibility and standardization with existing goods, equipment, technology or services by means of contracts to be arranged based on the principal contract and not exceeding three-year period in total,



d) procurements not exceeding fifteen billion Turkish Liras (nineteen billion ninety-five million Turkish Liras)* for needs of contracting entities within the boundaries of metropolitan municipalities and procurements not exceeding five billion Turkish Liras (six billion three hundred and sixty-five million Turkish Liras)** for needs of other contracting entities, and purchases with regard to accommodation, trip and victualling within the scope of representation expenses.



e) Purchase or lease of immovable property according to need of the contracting entity.



f) Procurements of medicines, medical consuming materials, test and control consuming materials which are to be used in urgent cases and are impossible to be stocked for their natures,



g) Procurements of services from advocates having Turkish or foreign nationality or from advocacy partnerships in order to represent and defend the contracting entities covered in the Law, in suits with regard to disputes which proposed to be settled by international arbitration



In procurements pursuant to this article, the needs shall be met upon a market price investigation by a person or persons to be assigned by contracting officer, without necessity of establishing a tender commission and requiring the qualification provisions stated in article 10.



Design Contests



Article 23- In order to acquire the required plans and projects relating to architecture, landscaping, engineering, urban design projects, urban and regional planning and fine arts; the contracting entities may conduct contests, with or without prize, in which the winner is selected through an evaluation by a jury, by advertising such contests in a way to ensure a competitive environment in accordance with the principles and procedures stated in the related legislation.



SECTION II



Advertisement of procurement and prequalification, Issuance of Tender Documents



Contents of procurement advertisements



Article 24- The advertisement shall not include anything that is not specified in the tender documents. It is mandatory to include the following information in the advertisements:



a) The name, address, telephone and fax number of the contracting entity,



b) The name, characteristics, type and quantity of the procurement.



c) the place of delivery in procurements of goods and the place where the task is to be performed in procurements of services and works, ,



d) the commencement and completion dates for the subject matter of the procurement.



e) the procurement procedure to be applied, rules of participation and the required documents and certificates,



f) The criteria to be used in the qualification evaluation,



g) Indication of whether the tender is limited only to domestic tenderers, and whether there is a price advantage for domestic tenderers,



h) the place where the tender documents can be seen, and the price to obtain tender documents,



i) (Amendment:4964/Article 16) The place, date and hour of the tender



j) The address where the tenders are to be submitted until the hour specified for opening the tenders,



k) The type of tender and contract,



l) (Amendment: 4964/Article 16) the statement specifying that a tender security should be given in an amount determined by the tenderer, not being less than 3 % of the tender price.



m) The validity period of the tenders.



n) (Annexed:4964/ Article 16) Statement on whether the consortia are allowed to submit tender or not



Contents of pre-qualification notices/advertisement



Article 25- Advertisements shall not include anything that is not specified in the pre-qualification documents. The following information is mandatory in pre-qualification notices:



a) the name, characteristics, type and quantity of the procurement,



b) the place of delivery in procurements of goods and the place where the task the name, address, telephone and fax number of the contracting entity,



c) is to be performed in procurements of services and works, ,



d) the commencement and completion dates for the subject matter of the procurement,



e) the procurement procedure to be applied, rules of participation in pre-qualification and required documents,



f) the criteria to be used in pre-qualification evaluations,



g) indication of whether the procurement is limited only to domestic tenderers, and whether there is a price advantage for domestic tenderers,



h) the place where the pre-qualification documents can be seen, and the price to obtain pre-qualification documents,



i) the place, date and hour for the submission of the application to pre-qualification



j) (Annexed:4964/ Article 17). Indication of whether the consortia are allowed to submit tender or not



Ineligibility of procurement notices



Article 26- Procurement notices that are not in compliance with the provisions set forth in Articles 13, 24, and 25 shall not be valid. In case of such incompliance, the procurement or pre-qualification proceedings cannot be carried out unless the procurement notices are renewed in a way to ensure conformity with these articles.



In case of errors that are not in compliance with the provisions of Article 24 and 25, except for cases of not advertising the tender notices or not conforming to the related time limits specified in article 13, the tender or pre-qualification proceedings may be conducted provided that a correction notice is advertised in order to correct the erroneous matters within ten days following the advertisement of the tender or pre-qualification notices by contracting entities.



Contents of pre-qualification and tender documents and administrative specifications



Article 27- The tender documents shall include the administrative specifications that also incorporate the instructions to tenderers, the technical specifications that also cover the design of the work, the draft contract and other required documents and information. Prequalification documents shall include qualifications of candidates, prequalification criteria and other necessary information and documents.



The administrative specifications shall include at least the following information, depending on the subject matter of the procurement:



a) the name, characteristics, type and quantity of the work, and in case of services the work description,



b) the name, address, telephone and fax number of the contracting entity,



c) the procurement procedure, date and hour of the tender and place of tender submission,



d) instructions to tenderers,



e) rules of participation for tenderers, the required documents and qualification criteria,



f) methods for request for clarification of the tender documents and the realization of such request,



g) the validity period of the tenders,



h) (Amendment:4964/Article 18) Statement on whether the consortia are allowed to submit tender, whether it is possible to submit tenders for the whole or a portion of the subject matter of the procurement, whether an alternative tender can be proposed in procurement of goods and how those alternative tenders are to be evaluated, if so.



i) information on whether the transportation fees, insurance costs, taxes, duties and charges are to be included in the tender price,



j) the procedures and principles set forth in this Law and which shall be applied during the receiving, opening and evaluation of the tenders,



k) the procedures and principles set forth in this Law, which are required to be applied from beginning with the decision of procurement until signing of the contract,



l) an indication of whether the procurement is limited to domestic tenderers only and whether there is a price advantage for domestic tenderers,



m) type of tender and contract,



n) the amount and terms of tender security and performance bond,



o) (Amendment:4964/Article 18) a statement that the contracting entity is free to cancel the tendering proceedings before the hour pre-determined (deadline) for opening of tenders,



p) a statement that the contracting entity is free to reject all the tenders and cancel the procurement proceedings,



r) the commencement and completion dates for the subject matter of the tender, the place it will be carried out, the terms of delivery and the penalties to be paid in case of delays,



s) the place and terms of payment; whether an advance payment is to be made or not, and if so, the amount and terms of such payment; the method of payment for price differences, if any, for subject matter of the contract



t) (Amendment: 4964/ Article 18) circumstances and conditions for time extension, mutual obligations in case of work increases possible within the scope of contract and of work decreases



u) the parties who are responsible for paying the taxes, duties, charges and other expenses relating to the contract,



v) terms relating to insurance of the work and the workplace, construction liability and supervision,



y) conditions relating to supervision, inspection and acceptance,



z) procedure of dispute settlement.



Providing of tender and pre-qualification documents



Article 28- (Amendment:4964/Article 19) The tender and pre-qualification documents can be seen at the place of contracting entity, free of charge. However, it is compulsory this document be purchased by tenderers willing to participate in the pre-qualification or tender proceedings. The price of the document shall be determined by the contracting entities in such a way that this amount shall not exceed its printing cost and not impede competition.



Clarifications or amendments to the tender documents



Article 29- In principle, no amendment should be made in the tender documents after the advertisement of the procurement notices. If an amendment is deemed as necessary, the necessities and reasons thereof shall be certified with a minute, and the previous notices shall be deemed invalid, and the procurement notice shall be advertised again, likewise..



However, after the advertisement of tender notices, if material or technical errors or deficiencies that may affect the preparation of tenders or realization of the work are detected by the contracting entity or notified by the tenderers with a written notice, the tender documents can be amended. The addendum relating to such amendments, and constituting a binding part of the tender documents shall be provided to all tenderers who have purchased the tender documents, in a way to ensure that they are informed ten days prior to the deadline for submission of tenders. In case an extension of the time period is needed in order to prepare the tenders due to the amendments made with addendum, the date of tendering may be postponed for maximum twenty days, but for once only. In case of an addendum, the tenderers who have already submitted their tenders prior to such arrangement shall be allowed to withdraw their tenders and submit new tender.



Moreover, the tenderers may request clarifications relating to aspects in the tender documents, which they may need when preparing their offers, in writing until twenty days in advance of the deadline for submission of tenders. In case such request is found appropriate by the contracting entity, the required clarifications and explanations shall be provided in writing, in a way to ensure that all the tenderers who are already provided with the tender documents until that date are informed of such clarifications ten days in advance of the deadline for submission of tenders, without disclosing the tenderer making the request.



SECTION III



Submission of Tenders and Applications



Preparation and submission of tenders



Article 30- All documents and certificates required under the rules of participation in the procurement including the tender letter and the tender security shall be placed in an envelope. The name, surname or commercial title and notification address of the tenderer, the subject of the procurement and the full notification address of the contracting entity carrying out the procurement proceedings shall be written on the envelope. The seal of the envelope shall be signed and stamped by the tenderer.



The tender letter shall be submitted in writing and signed. It is mandatory to indicate in the tender letter that the tender documents are fully read and accepted; the offered price is written clearly, both in writing and in figures as consistent with each other; there are no scrapings, erasures, or corrections and the tender must be signed by the authorized persons stating name, surname or commercial title. In procurement of goods, if a provision on submission of alternative tenders exists in the procurement document, then the alternative tender shall be prepared and submitted accordingly.



The tenders shall be submitted to the contracting entity no later than the date and hour specified in the tender documents, in return of a receipt indicating the queue number. The tenders submitted after the hour specified as deadline shall not be accepted and shall be returned unopened. The tenders may also be sent via registered mail. The tenders sent by mail must be received by the contracting entity until the hour specified as deadline in the tender documents. The date and hour of the receipt of the tenders that will not be included in the procurement proceedings due to postal delays shall be recorded in writing.



The submitted tenders cannot be withdrawn or changed for any reason whatsoever, except in case of an addendum arrangement.



Submission of applications



Article 31- All documents required for participating in pre-qualification shall be submitted to the contracting entity in accordance with the relevant principles and procedures set forth under the first and third paragraphs of Article 30.



Validity period of tenders



Article 32- The validity periods for tenders shall be specified in the tender documents. In case contracting entity requires, this period may be extended maximum as long as the validity period of the tender specified in the tender document with the consent of the tenderer, provided that no amendments are made in the conditions of tender and contract.



Tender security



Article 33- (Amendment:4964/Article 20) In procurements, a tender security shall be given in amount determined by the tenderer, not being less than 3 % of the tender price. In consultancy services, it is not compulsory to require tender security provided that it is stated in tender documents.



Values Accepted as tender security



Article 34- The values accepted as tender security are as follows:



a) The current Turkish Lira,



b) (Amendment: 4964/Article 21) Letters of guarantee from banks and special financing institutions



c) Domestic Borrowing Bills issued by the Undersecretariat of Treasury and documents arranged for replacing these bills,



(Amendment: 4964/Article 21) The letters of guarantee that may be arranged by foreign banks permitted to operate in Turkey in accordance with the related legislation, and the letters of guarantee that may be arranged by banks or special financing institutions operating in Turkey upon the counter-guarantees given by banks or similar creditors operating abroad shall also be accepted as tender security.



With regard to bills and documents replacing these bills mentioned in paragraph (c), the bonds issued with a nominal value including interest shall be accepted as tender security on the sales value corresponding to the capital.



Securities other than letters of guarantee cannot be received by tender commissions. Such securities must be deposited to accounting offices or departments.



The letters of guarantee belonging to successful tenderer who is awarded the contract and to the tenderer submitting the second economically most advantageous offer shall be submitted to accounting offices or departments following the procurement proceedings. The tender securities of other participants shall be promptly returned. In case a contract is signed with the successful tenderer, the guarantee belonging to the tenderer who has submitted the second economically most advantageous offer shall be returned immediately after the signing of the contract.



Securities may be exchanged with other values accepted as tender security.



Under no circumstances, the tender securities received by the contracting entity can be attached and held subject to precautionary measures.



Guarantee Letters [1]



Article 35- (Amendment:4964/Article 22) Public Procurement Authority is authorized to determine the form and scope of guarantee letters pursuant to Law,.



The period shall be stated in preliminary letters of guarantee provided that it shall be at least 30 days more than the validity periods set for tenders in accordance with Article 32. In case of extension of the validity period of the tender, the period of preliminary letters of guarantee shall be extended accordingly. Validity of performance bonds shall be determined by the contracting entity by taking into account the termination date of the procured task.



Letters of guarantee violating the relevant legislation shall not be accepted.



SECTION IV



Evaluation of Tenders



Receiving and opening of tenders



Article 36- (Amendment: 4964/Article 23) The tenders shall be submitted to the contracting entity until the time stated for submission of tenders in the tender documents. The number of tenders submitted at the hour of the tender shall be recorded in the minutes by tender commission and announced to those who are present, and then the tender proceedings shall be immediately commenced. The tender commission shall examine the tender envelopes in the order of submission. Envelopes that are not in compliance with paragraph 1 of Article 30 shall be recorded in the minutes and shall not be included in the evaluation stage. The envelopes shall be opened in the presence of tenderers and those who are present, in the order of submission.



It shall be checked if the documents of the tenderers are complete or incomplete, and whether the tender letter and the preliminary guarantee are in conformity with the relevant procedures. Tenderers with incomplete documents or improper tender letters and tender securities shall be recorded in the minutes. The tenderers and their tender prices shall be announced. The minutes relating to these proceedings shall be signed by the tender commission. At this stage, no decision shall be made with regard to rejection or acceptance of any of the tenders, the documents consisting of the tender cannot be corrected or completed. The session shall be closed for immediate evaluation of the tenders by the tender commission.



Evaluation of tenders



Article 37- Upon the request of tender commission, the contracting entity may ask the tenderers to clarify their tenders in writing on the unclear aspects of the tender, in order to use in the examination, evaluation and comparison of tenders. However, this clarification shall not be required and made with the intension of making change in the tender price, or converting any ineligible tender according the conditions in the tender documents to an eligible one.



In evaluating the tenders, first of all, the tenders of the tenderers whose documents are established to be incomplete or whose tenders or tender securities are established to be not in compliance with the requirements as a result of the first session in accordance with Article 36 shall be excluded from the evaluation proceedings. However, in case of omission of documents or omission of unimportant information in the documents provided that absence of those do not alter the substance of the tender; the contracting entity shall request the tenderer in writing to furnish these missing documents or information in a given time period. The tenderers who can not furnish these missing documents in a given time shall be excluded from the evaluation. Following this pre-evaluation and proceedings, the tender of tenderers with complete and appropriate documents and appropriate tender letters and preliminary guarantees shall be held subject to a detailed evaluation. At this stage, the tenders shall be examined for their conformity with the qualification criteria determining the capacity of the tenderers to perform the contract, which is the subject of the tender proceeding, as well as with the conditions set forth in the tender documents. The tenders of tenderers that are found ineligible shall be disqualified.



At the final stage, the price charts annexed to the tender letter shall be checked if any arithmetic errors exist. In case of any arithmetic errors in the multiplications or additions in the annexed chart of the tender letter demonstrating the offered prices these arithmetic errors shall be corrected by the tender commission ex officio, on the basis of the unit prices offered by the tenderers. The corrected tender price shall be accepted as the actual offer of the tenderer and the tenderer shall be promptly notified in writing of such an event. The tenderer must notify in writing whether he accepts or not the corrected tender within five days following the notification date. In case the tenderer does not accept the corrected tender or fails to respond within this period, the tender in question shall be disqualified and the tender security shall be registered as revenue.



Abnormally low tenders



Article 38- The tender commission shall evaluate the tenders in accordance with Article 37 and shall determine those that are abnormally low compared to the other tenders or the estimated cost determined by the contracting entity. Before rejecting these tenders, the commission shall request from the tenderers, the details relating to components of the tender that are determined to be significant, in writing and within a specified period.



The tender commission shall evaluate the abnormally low tenders taking into consideration the written explanations documented on the following aspects:,



a) economic nature of the manufacturing process, the service provided and the method of works,



b) selected technical solutions and advantageous conditions to be utilized by the tenderer in supply of the goods and services or fulfilment of the works.



c) the originality of the goods, services or works proposed.



As a result of this evaluation, the tenders of the tenderers whose written explanations are found insufficient or who fail to make a written explanation shall be rejected.



Rejection of all tenders and cancellation of the tender proceedings



Article 39- (Amendment:4964/Article 24) Upon decision of the tender commission, the contracting entity is free to reject all tenders and cancel the tender proceedings. In case the tender proceedings are cancelled, this event shall be notified promptly to all the tenderers. The contracting entity shall incur no liability for rejecting all the tenders. However, in case requested by the tenderers, the contracting entity shall notify of the reasons for the cancellation of the tender proceedings the tenderers who request.



Conclusion and Approval of the Tender Proceedings



Article 40- Following the evaluation performed in accordance with Article 37 and 38, the tenderer with the economically most advantageous tender shall be awarded with the contract.



In cases where it is not possible to determine the economically most advantageous tender on the basis of the lowest price only, the economically most advantageous tender shall be determined by taking into account the factors other than price such as operation and maintenance costs, cost-effectiveness, productivity, quality and technical merit. In tender proceedings where the economically most advantageous tenders shall be determined by taking into account the other factors in addition to the price, these factors must be stated in the tender documents and where possible, must be expressed in monetary values. Relative weights shall be determined in tender documents for the factors which cannot be expressed in monetary values.



In tender proceedings where it is stated in the tender documents that there is a price advantage for domestic tenderers in accordance with Article 63 of this Law, the tender proceedings shall be concluded by also taking into account the price advantage to determine the economically most advantageous tender.



In tender proceedings where the lowest price offer is evaluated as the economically most advantageous tender, in case there are more than one offers with the same tender prices and these are established to be the economically most advantageous tender, the tender proceedings shall be concluded by determining the economically most advantageous tender taking into account the factors other than price as stated in the second paragraph.



The tender commission shall make its justified decision, specifying the grounds thereof, and submit the decision for the approval of the contracting officer. The decisions shall include the names or commercial titles of the tenderers, the offered prices, the tender date and the award of contract and grounds thereof, and in case the tender was not realized, the related reasons thereof.



(Amendment: 4964/Article 25) Within maximum five days following the date of the decision, the contracting officer shall approve or cancel the tender decision, indicating clearly the grounds for cancellation.



The tender shall be deemed valid if the decision is approved, and null if it is cancelled.



Prior to approval of the tender decision by the contracting officer, the contracting entity must confirm whether the successful tenderer is prohibited from participation in tenders pursuant to Article 58, by asking for the confirmation as specified under Article 58, and must attach the related document to the tender decision.



Notification of finalised tender decisions



Article 41 – (Amendment: 4964/Article 26) The tender decisions approved by the contracting officer shall be acknowledged to all tenderers who have submitted an offer, including the tenderer awarded, in return of signature or by means of registered mail sent to the notification addresses of all tenderers within maximum three days following the day of approval. The seventh day following the mailing of the letter shall be deemed as notification date of the decision to the tenderers.



In case the tenderers participating in the tender and whose tender has not been included in evaluation or not found eligible, make a written request within five days following the notification date; the contracting entity must notify the tenderer in writing of the reasons for rejection within five days following the date of the request.



In cases where the tender decisions are cancelled by the contracting officer, the tenderers shall be likewise notified.



Invitation to contract signing



Article 42 – (Amendment:4964/Article 27) Within three days following the end of time limits specified in the second paragraph of Article 41 or in cases necessitating the visa of Ministry of Finance, in three days following the notification on realisation of this visa, an announcement shall be made to the successful tenderer, in return of signature or by registered mail to his notification address, to sign the contract by issuing a performance bond within ten days following the date of notification. The seventh day following the mailing day of the letter shall be deemed as notification date of the decision to the tenderer. In case of foreign tenderers, twelve days shall be added to this time period.



In the procurements related to consultancy services where no performance bond is required before the contract according to the provision of Article 43, invitation to sign the contract shall be issued in accordance with the provisions of first paragraph without asking for any performance bond.



Performance bond



Article 43 – In order to ensure that the commitment is carried out in accordance with the provisions of the contract and tender documents, a performance bond calculated as 6 % of the contract value shall be taken from the successful tenderer prior to the signing of the contract.



However, in case of procurements related to consultancy services, provided that it is specified in the tender documents, the performance bond may not be taken before signing of the contract. In such a case, a deduction of 6 % from each progress payment shall be retained as guarantee.



The obligations and liabilities of the tenderer in signing of the contract



Article 44 – The successful tenderer is obliged to sign the contract after submitting the performance bond according to Article 42 and 43. The tender security shall be returned immediately after the signing of the contract.



In case these obligations are not fulfilled, the tender security of the successful tenderer shall be registered as revenue without taking any further legal action. In such a case, the contracting entity may sign a contract with the tenderer submitting the second economically most advantageous tender in accordance with the principles and procedures set forth in this Law provided that the said tender's price is found as appropriate by the contracting officer. However, in order to sign a contract with the tenderer submitting the second economically most advantageous tender, the tenderer in question shall be notified as stipulated in Article 42, within three days following the termination of the ten-day period specified in Article 42.



In case the tenderer with the second economically most advantageous tender also rejects signing the contract, the tender security of this tenderer shall be registered too as revenue and the tender proceedings shall be cancelled.



The obligations and liabilities of the contracting entity in signing of the contract



Article 45 – The contracting entity is obliged to carry out its duties regarding the conclusion of the contract within the period set forth in Article 42 and 44. In case the contracting entity fails to fulfil this obligation, the tenderer may renounce his commitments within maximum five days following the end of the period, on condition that he makes an announcement through a notary-public approved notification with a period of ten days. In this case, the tender security is returned and the tenderer gains the right to demand the recorded expenses he has incurred in the issuing of the guarantee. Those who have caused this loss shall compensate for it and shall be subject to the provisions of Article 60.



Signing of the contract



Article 46 – (Amendment:4964/Article 28) All tenders that are carried out shall be concluded with a contract. The contracts shall be prepared by the contracting entity and signed by the contracting officer and the contractor. In case contractor is a joint venture, the contracts shall be signed by all the partners of the joint venture. It is not mandatory the contracts be registered and notarized by public notary, unless otherwise stated in tender documents.



Contracts shall not be contrary to the specifications set out in the tender documents.



Notification of the result of the tender



Article 47 – (Amendment:4964/Article 29) The tender results of tenders whose contract value exceeds one trillion Turkish Liras (one trillion two hundred and seventy-three billion fifty million Turkish Liras)* for procurement of goods or services and two trillion Turkish Liras (two trillion five hundred and forty-six billion hundred million Turkish Liras)* for works, shall be published in the Official Gazette within maximum fifteen days following the date which the registration of the contract by Court of Accounts is notified to the contracting entity and in cases where such a registration is not necessary, the date of contract signing by the parties.



The contracting entities may also announce the results of the tender depending on the significance and characteristics of the work which is the subject of the tender via other newspapers or broadcasting instruments published in the country or abroad, or via, data processing networks or through electronic communication (internet).



The announcements shall include the following information:



a) contracting entity who conducted the tender,



b) date of the tender,



c) procedure of the tender,



d) name, characteristics, type, amount and place of the work that is the subject of the tender,



e) number of tenderers participated in tender,



f) name or commercial title of the awarded tenderer,



g) contract price,



h) the source from which the contract price to be paid and the amount of the source,



i) the commencement and termination dates of the work.







SECTION FIVE



Special Provisions on Procurement of Consulting Services







Consulting services



Article 48 – (Amendment: 4964/Article 30) Consulting services in technical, financial, legal or similar fields which are comprehensive and complex in nature and which require special expertise and experience, such as preparation of Environmental Impact Assessment Reports, plan, software developing, design, preparation of technical specifications or supervision can be procured from consultancy service providers.



The consulting services tenders are carried out in accordance with the provisions of this Law. However, the special provisions set forth in this section shall apply in selection and evaluation of the candidates and tenderers. Subject to the provisions contained in this section, only the restricted procedure shall be applied to tenders regarding consultancy services.



Pre-qualification and (Determination of Tenderers



Article 49 – The pre-qualification announcements shall be made within the period and principles specified in Article 13.



The pre-qualification notices announced in accordance with the provisions of this Law shall include information relating to the pre-qualification criteria to be used in the evaluation of the general competency, financial capacity and technical skills of the candidates. These notices shall also include the number or range of number of candidates to be invited for inclusion in the short list and for submitting tenders.



The candidates who apply for pre-qualification shall be evaluated in accordance with the pre-qualification criteria set forth in the tender documents and in the pre-qualification notice, and then a short list shall be prepared, which includes minimum three and maximum ten candidates selected among those that qualify in the pre-qualification evaluations carried out.



Invitation to tender



Article 50 – (Amendment: 4964/Article 31) The candidates who have been included in the short list prepared according the Article 49 above, shall be given a period which is not less than the periods stated in article 13 in order those candidates to prepare their technical and financial proposals, and a letter of invitation to tender shall be sent along with the tender documents. Those who are not found to be qualified as a result of the pre-qualification evaluation and candidates who are not included in the short list shall be notified in writing. In case the number of tenderers who are eligible to be invited to the tender is less than three, the invitations shall not be sent and the tender shall not be conducted.



When preparing their tenders, the tenderers can make a request for written explanations until twenty days prior to the final submission date of tenders, on matters, which need explanation in the tender documents. In case an explanation is made by the contracting entity, this explanation shall be sent in writing to all the tenderers in the short list, so that they are informed ten days prior to the final submission date of tenders.



In case the contracting entity notices or the tenderers notify in writing that material or technical mistakes or discrepancies exist that may affect the preparation of the tenders or the realisation of the assignment after the invitation letter is sent, some amendments can be made in the tender documents. An addendum containing those amendments which are binding part of the tender documents, shall be sent to all tenderers who are included in the short list to ensure that they are informed at least ten days prior to the final submission date of the tender. In case additional time is needed to prepare the tenders due to the amendments made with the addendum, the date of the tender can be postponed for a maximum of twenty days, for once only. In circumstances where an addendum is arranged, tenderers who have submitted their tenders prior to the arrangement shall be allowed to withdraw their tenders and submit new ones.



Preparation and submission of tenders



Article 51 – The letter of tender containing the price offered for the consultancy services and tender security shall constitute the financial offer of the tenderer. These shall be put in an envelope with the statement indicating that it is the financial offer. The letters of tender must comply with the conditions set forth in Article 30.



All other documents required for the technical evaluation shall constitute the technical proposal of the tenderer. This proposal shall be placed in a separate envelope marked as technical proposal.



Both envelopes shall indicate the name, surname or commercial title and notification address of the tenderer and the assignment, which is the subject of the tender. The seal of the envelopes shall be signed and stamped by the tenderer.



The envelopes containing the financial and technical proposals shall be submitted by placing both of them in another separate envelope or package and writing on it the name, surname or commercial title, open notification address of the tenderer, the assignment which the tender is related to, and the open address of the contracting entity.



Evaluation and conclusion of tenders



Article 52 – The tender commission shall take the minutes indicating the number of tenders submitted at the hour of the tender, shall announce this number to those who are present and promptly start the tender opening. The tender commission shall examine the tender envelopes in receiving order. Envelopes, which do not comply with the first paragraph of Article 30 shall be recorded in the minutes and shall be excluded from the evaluation process. Envelopes containing the technical proposals shall be opened in receiving order in the presence of the tenderers and those who are present, a control shall be made to ensure that all of the required documents are submitted and the situation shall be recorded in the minutes. The envelopes containing the financial proposals shall be recorded in the minutes without being opened, packed all together, sealed, and signed by the tender commission to be held in protection. No decision can be made at this stage as regards the rejection or acceptance of any tender. The documents in the tenders cannot be changed; no corrections or completion can be made. The session shall be closed for the tender commission to evaluate the tenders immediately.



The submitted tenders cannot be withdrawn or changed for any reason whatsoever, except the case of an addendum arrangement.



The tenders submitted for consultancy services shall be evaluated in two stages, namely technical and financial evaluation. The technical proposal shall be evaluated at the first stage and the financial proposal at the second stage by scoring individually at each stage. The overall score shall be calculated taking into account the weighted coefficients determined for the technical and financial points. The weighted coefficients of technical and financial points may be established in different ratios depending on the characteristics and the authenticity of the service, provided that the weighted coefficient of the technical point is higher.



In these tenders, the technical evaluation criteria shall be set in accordance with the criteria specified under Article 10. In the designation of these criteria, which are specified in the tender documents and in the invitation to tender, the experience in fulfilling contracts of similar characteristics and scale, the method proposed for the job, the organisational structure, the educational and professional qualifications of the executives and the technical staff to be assigned for the execution of the job shall be taken as a basis.



In the evaluation of the tenders submitted for consultancy services, firstly an examination is made to ensure that all documents of the tenderers pertaining to the technical evaluation comply with the conditions required in the tender documents. Tenders, which have missing documents, or which do not comply with the required conditions shall be disqualified. However, in case of omission of documents or omission of unimportant information in the documents provided that absence of which do not alter the substance of the tender; the contracting entity shall request the tenderer in writing to furnish these missing document or information in a given time period. The tenderer who can not furnish these missing documents within given time period shall be excluded from the evaluation.



The tender commission shall make a technical evaluation according to the technical evaluation criteria and points specified in the tender documents and in the invitation letter and shall determine the technical points of the tenderers. Tenders, which have got points below the minimum technical point specified in the tender documents, shall be excluded from the evaluation.



Tenderers with missing documents or who do not comply with the required conditions or who have gotten a technical point below the minimum required technical point, shall be notified in writing that their tenders have been excluded from the evaluation and that their financial proposals shall be returned unopened by hand, to themselves or to their proxies at the date and hour of the opening of the financial proposals. At the same date, tenderers whose technical proposals exceed the minimum technical points set out in the tender documents shall also be notified in writing of the date and hour when the financial proposals shall be opened.



At the date and hour notified by the tender commission; first of all, the results of technical evaluation and the technical points shall be announced to those who are present. The envelopes containing financial proposals, which have been collectively kept under protection by the tender commission, shall be opened. The financial proposal envelopes of the tenderers, whose tenders have been disqualified, shall be returned unopened by hand to themselves personally or to their proxies, and these tenderers shall be made leave the room. After that, the financial proposals of tenderers who achieve the minimum technical point or get higher shall be opened and the prices shall be read out and recorded in the minutes. The envelopes of the financial proposals, which could not be returned unopened by hand, shall be mailed immediately after the conclusion of the tender proceeding.



Tenderers who fail to submit the tender letter and tender security in their financial proposals or whose tenders are not in conformity with the procedures shall be disqualified from the evaluation and be recorded in the minutes. The financial points of the tenderers with eligible financial proposals and tender securities shall be determined.



The technical and financial points belonging to these tenderers shall be multiplied by the weighted coefficients specified in the tender documents and thus the total points shall be determined. The tenderer scoring the highest total point shall be invited to negotiate the job description, contractual terms, personnel and financial proposal. However, this meeting shall not cause any significant change in the terms and conditions set out in the tender documents. In case the parties clarify the contractual terms and come to an agreement after the meeting, the tenderer in question shall be awarded the contract.



The decision taken by the tender commission shall be submitted to approval of the contracting officer.



In case the tenderer awarded with the contract fails to fulfil his liability to sign the contract, despite of the agreement reached in the meeting, then the tender security shall be registered as revenue by the contracting entity. In this case, a contract shall be signed with the tenderer scoring the second highest total point by negotiating in accordance with the principles and procedures set forth in this Law, provided that the tender price is approved to be appropriate by the contracting officer. If the second tenderer does not realise the signing obligation, its tender security shall be recorded as revenue by the contracting entity.



The tender proceedings shall be cancelled in case there are less than three candidates or tenderers after the pre-qualification or technical or financial evaluation.



CHAPTER THREE



Public Procurement Authority,Review of Complaints and Settlement of Disputes



SECTION ONE



Public Procurement Authority



Public Procurement Authority



Article 53- a) In order to carry out the duties assigned with this Law, a Public Procurement Authority with public legal entity, which is administratively and financially autonomous, has been established. Public Procurement Authority is assigned and authorized for the accurate implementation of the principles, procedures and proceedings specified in this Law.



The Authority is related to the Ministry of Finance. The centre of the Authority is in Ankara.



The Authority shall be independent in fulfilment of its duties. No organ, office, entity or person can issue orders or instructions for the purpose of influencing the decisions of the Authority.



The Public Procurement Authority shall comprise of the Public Procurement Board, Presidency, and the service units.



b) The duties and authorities of the Public Procurement Authority with respect to the tender procedures carried out in accordance with this Law are as follows:



1) to evaluate and conclude any complaints claiming that the proceedings carried out by the contracting entity within the period from the commencement of the tender proceedings until the signing of the contract are in violation of this Law and the related legislative provisions,



2) to prepare, develop and guide the implementation of all the legislation concerning this law and Public Procurement Contracts Law and the standard tender documents and contracts,



3) to provide training on procurement legislation, to provide national and international coordination,



4) to gather information relating to the contracts and tender proceedings carried out as specified by the Authority, to compile and publish statistics relating to quantity, price and other issues,



5) to keep the records of those who are prohibited from participating in tenders,



6) to carry out research and development activities,



7) to regulate the principles and procedures with regard to tender notices, to publish Public Procurement Bulletin in printed or electronic media.



8) In cases where it is established that domestic tenderers are prevented due to unfair reasons from participating in tender proceedings taking place in foreign countries, to take relevant measures in order to ensure that the tenderers of those countries are prevented from participating in the tenders held under the scope of this Law, and to furnish proposals to the Council of Ministers in order to ensure that the necessary arrangements are made,



9) to prepare the annual budget, the final account and the annual activity reports of the Authority, to ensure the implementation of the Authority's budget, the collection of the revenues and the incurrence of the expenses.



The Authority may, if deems necessary, review and bring to conclusion any claims of violation of this Law and the related legislative provisions.



The Authority may request documents, information and comments from all private and official institutions, establishments or persons, when fulfilling its duties. The requested documents, information or comments must be provided within the given time limits.



The Authority shall be authorized to issue the standard tender documents, form contracts, regulations and communiqués relating to the implementation of this Law and Public Procurement Contracts Law, subject to Board resolution. The Board and the Authority shall employ their authorities by establishing regulative transactions and taking specific decisions. Standard tender documents, form contracts, regulations and communiqués shall be put into force through publication in the Official Gazette.



c) The decision organ of the Authority shall be the Public Procurement Board, consisting of ten members including one chairperson, and one secondary chairperson. The members of the Board shall be appointed by the Council of Ministers as follows: 2 candidates proposed by the Ministry of Finance, 3 candidates proposed by the Ministry of Public Works and Settlement, and one each candidate proposed by the Presidency of Court of Accounts, Council of State and the Ministry in charge of Undersecretariat of Treasury, and one each candidate proposed among professional groups relating to public procurements by Turkish Union of Chambers and Stock Markets (TOBB) and Turkish Employers Union Confederation (TISK). The Council of Ministers shall appoint one of the members as the Chairperson. The Chairperson of the Board shall also be the President of the Authority. One of the members shall be selected by the Board as the Secondary Chairperson.



The members of the Board shall be graduates of Faculties of Law, Economics, Political Sciences, Business Administration, Economics and Administrative Sciences, Architecture and Engineering, or from the foreign higher education institutions whose equivalence to the above mentioned Faculties are recognized by the authorized bodies. The persons to be proposed for Board memberships must: have no less than twelve years of assignment fulfilled in the public institutions and entities (candidates proposed by TOBB and TISK are not obliged to be employed in the entities); have recognized qualifications and experience with regard to national and international procurement legislations as a result of an active work experience of at least four years in judging, reviewing, supervising, implementing or advising with regard to public procurement legislation; and have no past or present relationship of membership or task, including candidateship, with any political parties. The candidates proposed by TOBB and TISK must fulfil all conditions stipulated under subparagraphs 1, 4, 5, 6 and 7 of paragraph (A) of Article 48 of Civil Servants Act No: 657;



(Amendment:4761/Article 15) The duty period of the Board members is five years. A member can not be elected more than once. Board members can not be discharged before the duty period is over. However, if members become incapable due to the physical disabilities or illness or loose the conditions related to their assignment, they are depositioned from their duties before the due date. In case of sentenced with misconduct or defamatory offence, they are depositioned from their duties by the approval of Prime Minister. Board memberships, which become vacant due to deposition or any reason before the due date, are filled with appointments that are in agreement with the above-mentioned procedures within one month. The member appointed under these circumstances, completes the duty period of the member whom he/she is assigned in lieu of.



The general management and representation of the Authority and the execution of the decisions taken by the Board shall be the liability of the president. In case of leave of work due to permission, illness, domestic or abroad appointment or relieve of duty of the president, the second chairperson shall act as the proxy of the president.



d) The Board members shall take an oath in witness of the First Bureau of Assembly of the High Court of Appeal that they will fulfil their duties in an honest and impartial manner that they will not violate and let others violate the provisions of this Law and the related legislation throughout their memberships. Any application for such oath shall be deemed among priority issues by the High Court of Appeal. The Board members cannot start working unless they take their oaths.



e) The members of the Board, unless based on a specific Law, can not be involved in any official or private jobs, trade or freelance activities, can not participate in conferences or instruct courses in return of payment, and can not be a shareholder or manager in any kind of partnerships based on commercial purposes. The members of the Board are obliged to dispose off any stocks or securities they have acquired prior to starting their offices, belonging to legal entities carrying out activities in the market or their subsidiaries, via transferring or selling off to persons other than their relatives by blood up to third degree or by marriage up to second degree, within thirty days following the start of their assignment periods, except for those securities issued by the Undersecretariat of Treasury for domestic borrowing purposes. The members who do not act in compliance with this provision shall be deemed resigned from their memberships.



When executing their duties, the Board members and the staff of the Authority cannot disclose any confidential information or document concerning the related officials or third parties to any entity except for those authorized by law for such disclosures, and cannot use them for the benefit of their own or third parties. This liability of confidentiality shall also continue after they leave their offices. Board members and Authority staff shall be treated as Civil Servants for crimes they commit or crimes committed against them due to their offices, and in case of such crimes, the provisions of Act No: 4483 concerning Judgment of Civil Servants or Other Public Officers shall apply. The permission for legal investigations shall be issued by the relevant Minister for Chairman and Board members and by the President of the Authority for the staff of the Authority.



f) The Board members are obliged to submit a declaration of property, within one-month following the date of commencement and expiry of office, and every year during their office period.



g) The Board shall meet upon the call of the chairperson or, in case of his/her absence, the second chairperson, with no absentees, and shall take decisions by rule of majority. In case of equal votes, the party supported by the Chairperson shall be accepted as constituting the majority. There can be no abstentions while taking decisions. The board members shall be responsible for their votes and decisions. In cases of permit-leaves, sick-leaves, assignments or failure to make new appointments to the offices that become vacant, seven members at least are necessary for convening.



The Board members cannot participate in meetings and voting sessions related to decisions concerning their relatives by blood up to third degree or by marriage up to second degree and fosters.



The members who fail to participate in five meetings within a calendar year for reasons other than stated in this Law shall be deemed to have resigned from membership.



h) Three deputies may be appointed by resolution of the Board, in order to assist the President in his/her duties. The deputies of the president shall be appointed among those who comply with the same terms of appointment as the Board members or those who have been working at the Authority as professional staff for at least ten years consecutively with no interruptions, after graduating from a Faculty of Law, Economics, Political Sciences, Business Administration, Economics and Administrative Sciences, Architecture and Engineering or from higher education institutions abroad whose equivalences to those are recognized by authorized bodies.



The service units of the Authority; shall consist of main service units, consultancy units and auxiliary service units, organized in adequate number of departments as required in line with the duties and authorities of the Authority.



The fundamental and permanent duties required for the services of the Authority shall be executed by the professional staff consisting of the Public Procurement Experts and Assistant Experts, together with the other staff. All of these personnel shall be employed under a service contract.



(Amendmment:4761/Article 15) Those who will be appointed as Public Procurement Expert Assistants must know well at least one of the foreign languages specified in the regulation, must be graduated from a four-year undergraduate program of Faculties of Law, Economics, Political Sciences, Business Administration, Economics and Administrative Sciences, Architecture and Engineering or from foreign higher education institutions whose equivalences to those are recognized by the authorized bodies, must be successful in the special contending examination specified in the regulation, and must be under thirty years old on the first day of January of the year of such examination. Among those who have been appointed as Public Procurement Expert Assistants, the ones who have fulfilled at least three years of actual work period, received positive records every year, and proven that they can perform the duty of Public Procurement Expert within the framework of the principles and criteria set forth in the regulation such as performance during work and during the participated training activities shall be entitled to enter the proficiency examinations for Public Procurement Experts. Those who are successful in the proficiency exam shall be appointed as Public Procurement Experts, whereas those who fail to acquire the right to enter the proficiency exams and those who fail in this exam shall be assigned to another post within the Authority according to their status. The provisions relating to appointment, proficiency exams, duties, authorities and liabilities, working principles and procedures of Public Procurement Experts shall be specified with the regulation, which will be put into force with the decision of the Board.



The service units of the Authority, their duties and responsibilities, the procedures and principles relating to appointment and working of the personnel, and the titles, number and qualifications of the personnel that will be recruited under a service contract shall be regulated with the regulations issued by the Council of Ministers upon the proposal of the Authority and in line with the comments of the Ministry of Finance.



The staff of the Authority shall be subject to the Civil Servants Act No: 657, provided that the provisions envisaged in this Law are reserved.



i) The monthly salaries of the Chairperson and the members of the Board shall be designated by the Council of Ministers upon the proposal of the Ministry of Finance.



The salaries and other financial and social rights of the Authority staff shall be determined by the Board, within the framework of the principles, procedures and amounts specified by the Council of Ministers upon the proposal of the Board and in line with the opinions of the Ministry of Finance



The provisions of the Law of Retirement Fund of Republic of Turkey, No 5434, shall apply for those who are appointed as Board members and for the Authority staff. With regard to retirement; President of the Board shall be applied to the representation compensation, office compensation, additional co-efficient and other financial provisions of those designated for Undersecretary of the Ministry, the Board members shall be applied to those of Ministry Deputy Undersecretaries, the Deputies of the President of the Authority shall be applied to those of the Director Generals of Ministry, and the Heads of Departments of the Authority shall be applied to those of Deputy Director Generals of Ministry. The periods spent under these offices shall be deemed spent under offices requiring the payment of executive compensation and higher authority compensation.



In case those who are appointed as Board Chairperson or member are included within a scheme of any other social security institution established by law prior to their appointments, they shall remain within these schemes, if they desire, and shall not be subject to the provisions specified above.



(Amendment:4761/Article 15) During the duty period, the persons who are appointed as a Board chairman or as members are discharged from the past duties. However, for the persons who are appointed for the membership while they are charged with the public duties, in the event that their duties are ended for any reason apart from losing the conditions to enter civil-service positions, or they request to leave the job or in case of completing their duty periods, they are appointed for the suitable positions by the related ministry or officials who have the authority to appoint providing that they apply for their previous institutions within thirty days. During the said appointment procedure, if the period of time that the Board Chairman and members spent in the Authority are in the official or ruler category, the duties required payment of supreme arbitral indemnity are considered as passed (past) for the persons who are appointed after the Board Chairman and members start to earn supreme arbitral indemnity. In case the persons who have been charged in the Authority request to leave the job, they are appointed to suitable positions to gain benefit from their duties by the authorized officials in accordance with the Law provisions to which they were previously subjected. Those provisions are also applied to the personnel who come from the universities, provided that the provisions about acquiring academic titles are legally guaranteed.



(Annexed:4761/Article 15)The personnel who work on the issues related to Authority's field of duty in general and annexed budget administrations and state economic enterprises can be assigned in the Authority by the consent of their institutions, while the judges and attorneys can be assigned in the Authority by their own consent. Those personnel are regarded as on leave without pay and their salaries, allocations, any kind of increments and indemnities and



other financial and social benefits and aids are determined through the agreement signed between the Authority and the related personnel. During their vacation period, the employee rights of their civil services continue and these periods are taken into account at the time of their promotion and retirement, also they are promoted on due date without requiring any other procedure. The university personnel can be assigned for the suitable positions in the Authority



regarding their professions in accordance with the article no:38 of Law of Higher Education, no:2547, date: 4.11.1981.The number of personnel who will be assigned in this frame can not exceed 10 % of the total staff number.



j) The revenues of the Authority are as follows:



1) (Amendment:4964/Article 32) , Five of the per ten thousand of the contract price to be collected from the contractor for the contracts whose prices exceeding one hundred billion Turkish Liras (one hundred and twenty-seven billion, three hundred and four million Turkish Liras)*, to be signed in the scope of this Law.(At the stage of contract signing, contracting entities and notaries are obliged to check that the contractor has deposited this amount to



Authority's accounts)



2) One hundred and fifty million Turkish Liras (one hundred and ninety million Turkish Liras)** collected from the tenderers who make complaints,



3) Revenues from activities such as training programs, courses, seminars and meetings,



4) Revenues from all kinds of printed papers, forms, documents and publications,



5) Supports from the general budget, when necessary,



6) Other revenues



The revenues of the Authority shall be collected at an account in the Central Bank of Republic of Turkey or in any of the national banks.



The properties and assets of the Authority shall be deemed belonging to the State, and therefore cannot be attached or pledged. The uncollected revenues of the Authority shall be collected by property funds in accordance with the provisions of Law No: 6183 on Collection Procedures of Public Receivables, and shall be transferred to the accounts of the Authority within one month.



k) The expenses of the Authority shall be made with an annual budget which is put into force upon the decision of the Board. The budget year of the Authority shall be the calendar year. The budget shall be prepared within thirty days prior to the beginning of the budget year. The annual financial report and the budget final account relating to the budget implementation results of the Authority shall be acquitted with a Resolution of Council of Ministers.



Transactions and works relating to the annual accounts, revenues and expenses of the Authority shall be audited by the Court of Accounts.



SECTION TWO



Demand for Review and Review of the Complaints







Complaint for Review



Article 54 – Contracting entities and tender commissions shall have the obligation to carry out the tender proceedings in accordance with the principles and procedures stated in this Law and this obligation is a duty owed also to the contractor, supplier or service provider. Any contractor, supplier or service provider who claims that he has suffered a loss of rights or damage or he is likely to suffer loss or damage resulting from an alleged breach of such duty can



request review in accordance with the phases specified below, with a written complaint.



Review by Contracting Entities



Article 55 – With regard to the tender proceedings, a contractor, supplier or service provider shall first of all submit a written complaint to the contracting entity.



The complaint shall be heard by the contracting entity only where:



a) no procurement contract has been signed;



b) the complaint is submitted within fifteen days following the date upon which the contractor, supplier or service provider submitting the complaint became aware of the circumstances giving rise to the complaint or the date upon which the contractor, supplier or service provider should have become aware of those circumstances.



(The third and fourth articles have been abolished: 4964/Article 33)



(Amendment: 4964/Article 33) The contracting entity shall, within thirty days after the submission of the complaint, issue a reasoned decision. If the complaint is upheld in whole or in part, the decision shall also indicate the corrective measures to be taken. The decision shall be notified to all tenderers within seven days following the date of the decision.



(Amendment: 4964/Article 33) In cases where no decision can be taken within the specified period or the decision taken is found unacceptable, the candidate or the tenderer; may appeal to the Authority within fifteen days following the end of decision period or decision date.



(Amendment: 4964/Article 33) Following the submission of a complaint, the contracting entity can not sign the contract unless the contracting officer certifies that urgency and public interest considerations require the tender proceedings to continue. This certification, which is the justifiable approval of the continuation of the tender proceedings, shall be notified within a period that will ensure that the complainant candidate or tenderer receives such notice not less



than seven days in advance of the signing of the contract. In case the contract is signed without proper notification of such circumstances by the contracting entity, the tender decision and the contract shall be rendered null and void.



(Amendment: 4964/Article 33) In case the contracting entity notifies that the tender proceedings may continue and the contract may be signed, then the complainant candidate or tenderer may request the Authority for protested complaint within three days following the date of the aforementioned notification.



Review by the Public Procurement Board



Article 56 – (Amendment: 4964/Article 34) Provided that the contracting entity is notified by the contractor, supplier or service provider of all alleged breaches with regard to the tender proceeding that are requested to be remedied, together with an indication that the right to refer to legal action is reserved, then it may be appealed to the Authority prior to the signing of the contract, within the time limits and under the conditions stated above.



(Amendment: 4964/Article 34) The Board takes one of the decisions counted below, provided that it specifies the reasons and grounds relating to the appeals to the Authority:



a) Determines the corrective operation in cases where no suspension of the tender proceeding is necessary and remedies by the contracting entity would be sufficient.



b) Orders the termination of the procurement proceedings in case of non-compliance with this Law and the related legislation, which would constitute an obstacle for the continuation of the tender proceeding and which cannot be removed by taking corrective measures.



c) (Amendment: 4964/Article 34) Decides that the appeal is irrelevant.



(Amendment: 4964/Article 34) The Board orders the suspension of the procurement proceedings until the final decision, in case the subject of the appeal is in obviously contrary to this Law and the related legislation or in case damage or loss which would be irreparable in the absence of a suspension is likely to be inflicted upon the works contractor, supplier, service provider, public, the contacting entity or other tenderers.



(Amendment: 4964/Article 34) The appeals upon the decision of the contracting officer to continue with the tender proceedings due to urgency requirements and public interest shall be reviewed with priority after suspension of the tender proceedings, when necessary.



(Amendment: 4964/Article 34) Appeals made after signing of the contract shall not be assessed by the Board. It is compulsory that appeals made in accordance with the procedures be reviewed and concluded by the Board until the signing of the contract.



(Annexed: 4761/Article 16) (Amendment: 4964/Article 34) Appeal is a procedure which should be obligatorily used prior to sue. Following an appeal is made,, the Authority shall take a decision relating to continuity of the tender proceedings within five days in cases where the contracting entity has taken the decision of continuation of tender proceeding and within fifteen days in other cases. The Authority shall take the final decision within forty-five days following



the request date.



All decisions of the Public Procurement Board shall be notified to the parties within five days following such decisions' dates.. The Authority shall also have these decisions published in the Official Gazette.



Judicial Review



Article 57 – The final decisions made by the Public Procurement Authority with regard to the complaints shall be under the jurisdiction of the Turkish courts and such cases shall have priority.



CHAPTER IV



Prohibition and Criminal Liability



Prohibition from participation in tenders



Article 58- (Amendment:4964/Article 35) Those who are established to be involved in acts and conducts set forth in Article 17, shall be prohibited from participation in any tender carried out by all public institutions and entities including the ones excepted with the 2nd and 3rd articles of this Law, for at least one year and up to two years depending on the nature of the said acts and conducts; and those who do not sign a contract in accordance with the



procedures, except for force majeure, although the tender has been awarded to them, shall be prohibited likewise from participation in any tender for at least six months and up to one year. Prohibition decisions shall be taken by the Ministry implementing the contract or by the Ministry which the contracting entity is subordinate to or associated with, by contracting officers of Contracting Entities which are not considered as subordinate to or associated with any



Ministry, and by



the Ministry of Internal Affairs in special provincial administrations and in municipalities and in their affiliated associations, institutions and undertakings.



In case legal persons who are subject to prohibition are sole proprietorships, the prohibition decisions shall apply to all of the partners, and in case of companies with shared capital, the prohibition decisions shall apply for partners that are real or legal persons who own more than half of the capital in accordance with the provisions of paragraph 1. Depending on their being real or legal persons, in cases where those who are subject to a prohibition decision are



partners to a sole proprietorship, the sole proprietorship shall also be subject to the prohibition decision; and in cases where those who are subject to a prohibition decision are partners to a company with shared capital, the company with shared capital shall also be subject to the prohibition decision provided that they own more than half of the capital.



Those who are established to be involved in these acts and conducts during or after the tender proceedings shall not be allowed by the contracting entity to participate in the current tender as well the subsequent tenders to be carried out by the same contracting entity until the effective date of the prohibition decision.



(Amendment :4964/Article 35) The prohibition decisions shall be made within at most forty-five days following the date which the conducts or acts requiring prohibition has been established. The prohibition decision shall be sent for publication in the Official Gazette within at most fifteen days, and shall become effective on the date of its publication. The decisions shall be followed up by the Public Procurement Authority and those who are prohibited from



participation in public procurements shall be recorded.



The contracting entities carrying out the tender proceedings shall be responsible for notifying the relevant or related ministry of any event requiring prohibition from participation.



Penal Liability of Tenderers



Article 59- Even if it has been established after the completion and acceptance of the contract, the real or legal persons and their partners or proxies who have been involved in acts or conducts constituting a crime under the Criminal Code among the ones specified in Article 17, shall be notified to public prosecutions in order to be held subject to criminal prosecution in accordance with provisions of the Criminal Code. In addition to the punishment rendered by



the court, these persons shall be prohibited from participation in the tender proceedings of all public institutions and entities that are included within the scope of this Law by decision of court, starting from the ending date of the prohibition decision made by the contracting entity pursuant to Article 58 and for a period of at least one year and up to 3 years, together with the those stated in paragraph 2 of Article 58.



Those for whom a decision to file a public lawsuit is made following the criminal prosecution held in accordance with paragraph 1 due to tenders conducted within the scope of this Law, and those mentioned in paragraph 2 of Article 58, can not participate in the tenders held by public institutions and entities included within the scope of this Law, until the end of judgment proceedings. Those who are decided to be subject to a public lawsuit shall be informed to the



Public Procurement Authority by the Public Prosecutor's Office for recording.



Those who are convicted for repeated times for prohibited acts and conducts set forth under this Law, and the companies with shared capital in which these persons own more than half of the capital, or the sole proprietorships to which these persons are partner, shall be prohibited permanently from participation in public procurements by court decision.



In accordance with the provisions of this Article; those, who are prohibited and convicted by court decision shall be notified by the Public Prosecutors to the Public Procurement Authority in order to be entered the records and to the relevant professional chambers in order to be entered in their professional records.



The court decisions pertaining to those who are prohibited permanently from participation in public procurements shall be announced by publication in the Official Gazette within fifteen days following the notification by the Public Procurement Authority.





Penal Liability of Officers



Article 60- (Amendment:4964/Article 36) In case it is established that the contracting officer, the chairperson and the members of the tender commissions and other related persons assigned at any stage of the procurement proceedings starting from the tender proceedings until the completion of the commitment, have committed acts or conducts specified in Article 17; have failed to fulfil their duties in accordance with the legal requirements or failed to act impartially; or have been involved in defaults or negligent acts which inflict loss upon one of the parties, these persons shall be given a disciplinary punishment in accordance with the related legislation. Criminal prosecution shall also apply for these persons depending on the nature of their acts or conducts, and in addition to the punishment rendered by the court, these persons shall compensate for all the loss and damage inflicted upon the parties in accordance with the general provisions. The persons who have been convicted for the acts and conducts contrary to this Law shall not be assigned to duties within the scope of this Law.



The personnel who have been incurred to any punishment by judicial bodies due to acts and conducts included within the scope of this Law shall not be appointed and assigned by any Public institutions and entities covered in this Law, to any duties or authorized positions related with the implementation of this Law or other related regulations.



(Amendment: 4964/Article 36) The sanctions mentioned above shall also apply to those who permit and carry out tender proceedings in violation of the instructions stipulated under Article 62 and the principles set forth under Article 5.



Confidentiality of Information



Article 61- (Amendment: 4964/Article 37) Those who are assigned with the implementation of this Law and those who provide consultancy services cannot disclose or use for the benefit of their own or of third persons, any of the confidential information or documents relating to all proceedings about the tender process; works and proceedings about tenderers, technical and financial structures of the tenders, as well as the estimated costs of the



procurements. Depending on their relevance, the sanctions stipulated under Article 58 and 60 shall apply in case of violation.















CHAPTER V



Various Provisions



Other Rules for Contracting Entities



Article 62– It is mandatory for contracting entities to comply with the principles set below within the scope of this Law, before conducting a tender proceeding for goods, services or works.



a) With the aim of completing investment projects in the planned time period and presenting them to the service of the economy, in order for a tender to be conducted for any work that covers a period exceeding one year, it is compulsory that a program be established to ensure that there is an appropriation in the budget on a yearly basis distributed according to the time period of the work. The appropriation contemplated for the first year shall not be less than 10 %



of the project cost, and the appropriation portions which are initially put in the program for the coming years cannot be decreased in the years to follow.



b) (Annexed: 4964/Article 38) In consideration of the time period in which the planned appropriations can be used, it is essential that the tenders be conducted in due time and for the works/procurements covering a period of more than one year and having the investment characteristic (excluding those that must be carried out due to natural disasters), it is essential that the tenders be concluded within first nine months of the year. However, the procurements of



goods and services to be realized in the following fiscal year and having continuous characteristic, may be carried out before the end of previous fiscal year.



c)(Ammendment:4761/Article 17) (Annexed:4964/Article 38) In construction works, it is not allowed to initiate the tender process without obtaining building site, without completing ownership, expropriation and if required development transactions and without establishing application projects. In construction works where application projects exist, it is obligatory the tender be carried out through receiving turnkey lump-sum price proposal. However, for construction



works, which have no sufficient time to establish an application project due to the natural disasters, the tenders may be conducted with preliminary or final projects; and for the construction works which the application project can not be established before the tender since land and soil surveys are required in some certain stages, except for the building works, the tender may be conducted with final project. In those works, the tender may be carried out on turn-key



lump-sum basis for the parts of works where the application project can be implemented, and on unit price basis for each item of work for the parts where the application project can not be implemented. Repair works tenders of cultural assets to be made according to survey, restoration and restitution projects shall be carried on unit price basis for each work item. The conditions regarding to availability of building site and completion of ownership and



expropriation transactions shall not be required in projects relating to dams, large-scale irrigations, oil and natural gas pipelines.



d) (Amendment: 4964/Article 38) The estimated cost; which determined to be used in programming of the budget by the contracting entities, and to be used in comparing the proposals submitted by tenderers participating in the tender shall not be disclosed to tenderers.



e) (Amendment:4964/Article 38) In cases where the staff employed by contracting entities in accordance with the laws, decrees and regulations have not sufficient qualifications and are not sufficient in number, a tender can be opened for the services specified in this Law on condition that the contracting officer approves.



f) No advertisement shall be published without preparing the tender documents. In determining the notice periods, the day of publication of the notice shall be taken into account, and the date of tender or the deadline for applications shall not be taken into account. It is mandatory to send the texts of the notices where they will be published in advance, taking into consideration the time that will elapse until the publication of the notice, in order to ensure compliance



with the time limits set forth in Article 13.



g)In case the date determined for the tender falls on a holiday, the tender shall be realized on the first working day following the holiday at the same place and time with no further requirement of a notice, and the tenders which have been submitted until this time shall be accepted. The time of the tender shall be determined with regard to the working hours. Even if there is a change in the working hours after the notice, the tender shall be held at the hour



announced before.



h)) For the engineers or architects not participating in management and control tasks in construction works, their each year after graduation shall be taken into account as worth sixty billion Turkish Liras (seventy-six billion, three hundred and eighty-three million Turkish Liras)* so that they can participate in construction tenders, and the professional and technical qualification condition within the scope of Article 10 of this Law shall not be required for the year which



the related individual has begun to work.



i) (Annexed:4964/Article 38) The annual total of the expenses to be used up within the monetary limits specified in 21st and 22nd articles of this Law, can not exceed 10 % of the appropriations to be allocated in contracting entities' budgets for this purpose, unless otherwise is approved by Public Procurement Authority.



Arrangements regarding domestic tenderers



Article 63 – In tenders held under this Law, the contracting entities may establish some provisions to the tender documents with regard to; only domestic tenderers can participate in tenders of which estimated costs are below the threshold values, and in cases where the estimated costs are above the threshold values, in procurement of services and works, a price advantage would apply to all domestic tenderers, up to 15%, and in procurement of goods, a



price advantage up to 15 %, would apply to domestic tenderers who offer products which are accepted as domestic products by the Authority by taking the opinions of Ministry of Industry and Trade and of other relevant organisations and institutions. However, domestic tenderers who participate in the tender proceedings by forming joint ventures with foreign tenderers can not enjoy this right..



Calculation of time limits



Article 64 – In case there is no provision regarding the calculation of the time limits written in this Law, the provisions of the Code of Obligations shall apply.



Notification



Article 65 – For notifications to be served in case there is no relevant provision in this Law, the provisions of the Code of Notification shall apply.



Amendments



Article 66 – Amendments to provisions of this Law shall only be arranged through annexing provisions or making changes.



Updating threshold values and monetary limits



Article 67 – The threshold values and monetary limits specified in this Law shall be updated yearly by the Public Procurement Authority in view of the Index of Wholesale Prices of the previous year and shall be published in the Official Gazette until the 1st of February which will be effective as of the same date. However, the updating shall not take into consideration the amounts below 1 million Turkish Liras. The threshold values and monetary limits indicated in



this Law may further be updated upon the proposal of the Authority with the decision of the Council of Ministers in case of emergency.



CHAPTER VI



Final Provisions



Provisions not applicable



Article 68 - a) The provisions of State Procurement Law No: 2886, dated 08.09.1983 shall not be applicable in procurements covered in this Law.



b)The provisions of other laws, which are not in conformity with this Law and which are exempted from State Procurement Law No: 2886, dated 08.09.1983 shall not be implemented.



c) (Annexed: 4964/Article 39) In collective housing projects within the scope of Law no: 2985 on Collective Housing, the tenders may be conducted without requiring the conditions stipulated in fifth and sixth paragraphs of the 5th article, in (a), (b) sub-paragraphs of 62nd article and the conditions related to expropriation, ownership, obtaining of building site, development transactions and application project stated in sub-paragraph (c) of the same (62nd) article. However, in cases where Environmental Assessment Report is obligatory, it is compulsory this report be obtained before contract signing.



ADDITIONAL ARTICLE 1.- (Annexed:4964/Article 41) With the provisions with regard to publication obligation in Official Gazette set forth in 13th and 47th articles of this Law, it shall be understood the publication obligation in the Public Procurement Bulletin specified in the 53rd article of this Law.



Standard tender documents and regulations



INTERIM ARTICLE 1 – The standard tender documents and regulations to be issued for the implementation of this Law shall be prepared by the Public Procurement Authority in view of the opinions of the relevant institutions and entities until the enforcement date of the Law and published in the Official Gazette.



Until the enforcement of these documents, the contracting entities shall continue to apply the existing principles and regulatory provisions.



Ongoing tenders



INTERIM ARTICLE 2 - The procurements for which a written tender announcement or a notice has been made prior to the enforcement date of this Law shall be concluded in accordance with the relevant laws and procedures.



Updating



INTERIM ARTICLE 3 – The threshold values and monetary limits set forth in this Law shall be updated as specified in article 67 for the period lasting between the date of publication of the Law in the Official Gazette and the date of enforcement.



Principles and procedures relating to the exceptions



INTERIM ARTICLE 4- Principles and procedures relating to;



a) paragraph (b) of 3rd article shall be prepared by relevant institutions,



b) paragraph (d) of 3rd article shall be prepared by the Ministries of Foreign Affairs, National Defence, Finance, and Public Works and Settlement upon the approval of Public Procurement Authority,



c) procurements of goods and services to be made pursuant to sub-paragraph (f) of 3rd article shall be prepared by relevant institutions upon the approval of Public Procurement Authority,



until the date of enforcement of the Law by taking into account the opinions of relevant institutions and organisations and shall be put in force by decision of Council of Ministers.



(Amendment: 4761/Article 18) The principles and procedures to be implemented in procurements according to sub-paragraph (e) of 3rd article of this Law, may be determined by Authority, whereas the principles and procedures of purchases from State Procurement Office may be determined by the Ministry of Finance if deemed necessary.



(Amendment: 4761/Article 18) (Amendment: 4964/Article 40) The goods and services within the scope of sub-paragraph (g) of 3rd article of this Law shall be determined by Authority upon the request of relevant institutions.



(Annexed: 4964/Article 40) The principles and procedures related to sub-paragraph (h) of 3rd article of this Law shall be determined with the regulation prepared by Ministry of Finance, taking into account the opinions of Authority and Ministry of Health.





(Annexed: 4964/Article 40) The enterprises, institutions and corporations which carry out activities in energy, water, transportation and telecommunication sectors shall be subject to sub-paragraph (g) of 3rd article of this Law until their special laws enter into force and shall be subject to other provisions of this Law for procurements of goods, services and works which are not within the scope of said sub-paragraph.



Establishment of Public Procurement Authority



INTERIM ARTICLE 5- The Public Procurement Board specified in Article 53 of this Law shall be appointed within thirty days following the publication date of this Law in the Official Gazette. For the initial appointments to the Public Procurement Board; one each member determined by the Council of Ministers selected among the candidates proposed by the Ministry of Finance and selected among the candidates proposed by the Ministry of Public Works and Settlement shall be on duty for a period of seven years.



The Board, within sixty days following appointments, shall establish its organisation and make the Authority become effective by this date for the realization of its duties defined in this Law.



Until the date at which this Law shall be effective, the principles and procedures of the procurements to be held by the Authority shall be regulated by a regulation to be issued by decision of Council of Ministers upon the request of The Board.



The regulations mentioned in Article 53 of this Law and in the third paragraph above shall be issued by the date on which the Authority begins to operate.



All expenditures of the Authority shall be financed by the general budget sources, until the time when they are met by Authority's own revenues.



INTERIM ARTICLE 6.– (Amendment: 4761/Article 19) Within 1 year from the date of execution of this article;



a) Among the staff charged in public institutions and entities, those who are graduated from the higher education institutions defined in the scope of paragraph (h) of the article no:53 and have obtained the profession through private competition exam, and after a certain period of on-the-job training, have been appointed to office through private qualification exam, and those who are judges, attorneys and the ones regarded as from this profession,



b) The university teaching personnel who have completed at least postgraduate education provided that their branch is in relation with the Authority's field of duty,



c) The ones having bachelor's degree in engineering and architect and have worked in the public institutions and entities as related to their field of study for at least 5 years, and the ones having the post graduate education in one of these fields following their bachelor's degree and who have worked in the public institutions and entities as related to their field of study for at least 3 years,



may be appointed as public procurement experts by the Board through obtaining the approval of their institutions, provided that they have not exceeded 40 years old by a day, and for the ones defined in the sub-paragraphs (a) and (c), provided that they have worked in the field of judgment, inspection, auditing, implementing or consultancy related to public procurement legislation. .



The personnel who work in the administrations with general and annexed budget, state economic enterprises and their affiliated partnerships, in institutions having juristic personality established by private laws and charged with public duties and institutions with independent budget, may be appointed to the positions of the Authority apart from the public procurement expert and expert assistant positions until 31.12.2003, upon their request and approval of their institutions.



Enforcement



Article 69 – (Amendment: 4761/Article 21) Article 53, and interim Articles 1, 5 and 6 of this Law shall be effective on the publication date, whereas the other articles shall enter into force on 1.1.2003.



Execution



Article 70 – The Council of Ministers shall execute the provisions of this Law.



Provision of law no: 4761 which is not applicable to Law no: 4734 on Public Procurement



ARTICLE 20. The salaries, financial and social rights and benefits for the Chairman and members of the boards, supreme boards, , institutions and organizations which were established or to be established until 31.12.2006, through the private laws possessing the form of public legal entities and administrative and financial independencies, shall be determined by the Council of Ministers taking into account the functions of these boards, supreme boards, institutions and organizations, wage equity and the practice of provisional article 1 of the Decree of Law no:631. When necessary, the Council of Ministers has the authority to increase the ceiling job-lot price of representation and duty indemnities up to the amount as three times as the ones which are being paid to civil servants, and to make arrangements in the increased amount in respect to staff position and titles, in order to ensure wage equity.



Until the above mentioned arrangement is made, The Chairman of the Public Procurement Authority, is paid as total of net amount monthly and other payments as the Chairman of the Energy Market Regulation Authority is paid, and the members of the Public Procurement Board are paid monthly on the net amount of the 97 % of the total amount paid to the Chairman of the Board.



Provisions of Law no: 4964 which are not applicable to the Law no: 4734, on Public Procurement







INTERIM ARTICLE 1. - Tender documents, form contracts and regulations which need to be rearranged because of the amendments on the Laws no: 4734 and 4735 made by this Law shall be prepared by Authority within 60 days as of publication date of this law and shall be put into force. Arrangements made by this law on monetary limits in Law no:4734 and newly added monetary limits shall be updated by the Authority as of 1.1.2003, within the framework of the principles of article 67 of Law no:4734, accepting those limits were valid on 22.01.2002., Contracting Entities shall continue to implementing the provisions of existing principles, procedures and regulations until the above mentioned arrangements become effective.







Principles and procedures need to be prepared and become effective due to the amendments made on 3rd and provisional 4th articles of Law no:4734 shall be prepared within 30 days as of publication date of this law and put into force. Contracting Entities shall continue to implementing the principles and procedures which were prepared and became effective prior to amendments made by this law, based on formerly executed 3rd and provisional 4th articles of Law no:4734, until those arrangements are published,. Works procurements, which the institutions benefiting from the exception provision in paragraph (g) of the 3rd article of Law no:4734 are contractors under contracts, shall be subject to the exception provisions proposed in the same paragraph for a period of ten years.







ARTICLE 50.- Article 41 of this law shall become effective on January 1st, 2004, while the others shall come into force on publication date.



ARTICLE 51.- Council of Ministers shall execute the provisions of this Law.





* has been published in Official Gazette which is numbered 25215 and dated 31.08.2003 by Communique of Public Procurement Authority, numbered 2003/8 and has covered the period of 15.08.2003-31.01.2004 

* has been published in Official Gazette which is numbered 25000 and dated 21.01.2003 by Communique of Public Procurement Authority, numbered 2003/1, and has covered the period of 01.02.2003-31.01.2004

* has been published in Official Gazette which is numbered 25215 and dated 31.08.2003 by Communique of Public Procurement Authority, numbered 2003/8 and has covered the period of 15.08.2003-31.01.2004 

* has been published in Official Gazette which is numbered 25215 and dated 31.08.2003 by Communique of Public Procurement Authority, numbered 2003/8 and has covered the period of 15.08.2003-31.01.2004

* has been published in Official Gazette which is numbered 25215 and dated 31.08.2003 by Communique of Public Procurement Authority, numbered 2003/8 and has covered the period of 15.08.2003-31.01.2004

** has been published in Official Gazette which is numbered 25000 and dated 21.01.2003 by Communique of Public Procurement Authority, numbered 2003/1 and has covered the period of 01.02.2003-31.01.2004


[1] The statement of "Bank" has been omitted from the title with 22nd article of Law no:4964


* has been published in Official Gazette which is numbered 25000 and dated 21.01.2003 by Communique of Public Procurement Authority, numbered 2003/1 and has covered the period of 01.02.2003-31.01.2004 

* has been published in Official Gazette which is numbered 25215 and dated 31.08.2003 by Communique of Public Procurement Authority, numbered 2003/8 and has covered the period of 15.08.2003-31.01.2004

** has been published in Official Gazette which is numbered 25000 and dated 21.01.2003 by Communique of Public Procurement Authority, numbered 2003/1 and has covered the period of 01.02.2003-31.01.2004

* has been published in Official Gazette which is numbered 25000 and dated 21.01.2003 by Communique of Public Procurement Authority, numbered 2003/1 and has covered the period of 01.02.2003-31.01.2004
#75
Amasya Proclamation (22nd June 1919 - War Of Indepence)



1- The integrity of the country and the independence of the nation are in jeopardy. Since Istanbul Government is under the influence and domination of the Allied States, it could not perform the obligations that it has undertaken. The determination and resolution of the nation would save the independence of the country. It is required that a national council shall be established without any influence and domination in order to announce the rightful voice of the nation. It has been resolved that a national congress shall be assembled in Sivas that is the safest and the most secure place of Anatolia from each direction. To this effect, it is required that three delegates that have acquired the confidence of the people shall be sent from each district of all the cities as soon as possible. Taking into consideration all sorts of possible negative incidents, this issue shall be kept confidential as a national secret and the delegates shall continue their journeys in a confidential manner.

2- A congress shall be assembled in Erzurum in the name of the Eastern provinces on the date of 10th July. In case that the representatives of the other provinces can reach to Sivas until the foresaid date, the members of Erzurum Congress shall set off in order to participate in the general congress to be organised in Sivas.

3- In respect of the election of the delegates by the National Societies of Defence of Rights and the Directorates of Municipalities or in any other ways, I request the support and aid of your patriotism. I also request that the names of the delegates that are elected and the departure dates and times shall be notified in advance.

4- Those people would work to the execution of these aims; The inspector of the 9th army Mustafa Kemal, Hüseyin Rauf Bey, 15th Army Corps Commander in Erzurum Kazım Karabekir Pasha, 13th Army Corps Substitute Commander Miralay Cevad Bey, 3rd Army Corps Commander Refet Bele, The Governor of Samsun Sanjak Hamit Bey, 2nd Army Inspector Cemal Pasha, 12nd Army Corps Commander Miralay Selahaddin Bey, 25th Army Corps Commander Ali Fuat Pasha, 17th Army Corps Substitute Commander in Bursa Miralay Bekir Sami Bey, 1st Army Corps Commander in Edirne Cafer Tayyar Bey and other important civilian or military people, and the opinions and ideas of these people would be taken ; Former Grand Vizier Müşir Ahmed İzzet Pasha, The Minister of Nafia Ferit Bey, Ahmet Rıza Bey.

5- I request the immediate acknowledgment of the receipt of this telegram. All the telegrams will be transferred easily. This situation was informed to the Directory of Telegram and Post.

6- Military or Civilian foundations will never be left or given to anybody else. All of the army will be related to any of integrity to anywhere in the Country, we will defence all together. So, the commanders will inform each other immediately. Weapon or war materials will never be lost.

Resource : Amasia http://www.amasia.info
#76
Turkish law to stub out smoking
Turkey is about to break with its smoky past and introduce a law that bans lighting up in public buildings and at work places and threatens offenders with fines of up to 250,000 lira (Dh727,000).

But the question is: will anyone take note?

The "law for the prevention and control of damages done by tobacco products", which was passed by parliament in January and comes into force on May 19, bans smoking in public buildings and private companies as well as in facilities used for education, sport, social activities or cultural events. Public transport will also have to be smoke-free, the law said; even taxi drivers will have to stop smoking in their cars.

Open-air facilities, such as sport stadiums or concert arenas as well as old people's homes and prisons, can designate smoking areas. Bars, restaurants and tea-houses have been granted a grace period but will have to be smoke-free by July 19 next year.

Many Turks will struggle with the new law. Roughly 23 million of the country's 70 million are smokers, said Oguz Kilinc, a lung specialist at the Medical Faculty of the University of 9th September in the western Turkish city of Izmir, and a leading campaigner against smoking. "Fifty per cent of men and 30 per cent of women are smokers," he said.

Compared with developed countries, the number of smokers in Turkey is high, Mr Kilinc said. "In America, the number of smokers has fallen by 30 per cent in 20 years. In Turkey, it has risen by 80 per cent." About 100,000 people in the country die of smoking-related illnesses every year, he said.

"If the necessary precautions are not taken, this figure will rise to 250,000 in the next 20 years."

Health warnings have so far failed to curb the Turkish passion for cigarettes. Kazim Caliskan, the head of the Regulatory Committee for the Tobacco, Tobacco Products and Alcoholic Beverages Market, told local media last month that Turks smoke about 15 million packets a day. Even 55 per cent of doctors and 60 per cent of teachers light up regularly, health officials said.

The new law will mark a change with the past, said Ubeyd Korbey, president of Warriors against Cigarettes, a pressure group that helped shape the new law.

"This is like a revolution," Mr Korbey said. "I have been fighting 14 years for this."

Mr Korbey estimated it will take about two years for the new law to be implemented everywhere in the country. "Right now, hardly anybody knows about it," he said.

Mr Kilinc at University of 9th September also hailed the introduction of the law as the start of a new era. "It is the most important law for the health of our people," he said.

Apart from forbidding smoking in public buildings all around the country, the new law also bans advertisement and promotion of cigarettes. It will become illegal to sell single cigarettes, a step that is aimed primarily at cigarette sales around schools.

People caught smoking in places where it is banned can be fined 50 lira, while littering streets with cigarette stubs or empty cigarette packets will result in a 20 lira fine. If cigarette companies give cigarettes away in promotion campaigns or sell cigarettes outside designated stores, they can be fined up to 250,000 lira.

Mr Korbey said the fines were tough by Turkish standards. "We know that there have been problems in enforcing laws" in other areas, he said. "That's why the fines are so high."

Turkey will also underline its European ambition with the smoking ban, Mr Korbey said. "If we are to join the EU, we will have to introduce laws like that anyway," he said.

Efforts to enforce the smoking ban in public buildings are expected to be supported by leaders of the government and the army. Abdullah Gul, the Turkish president, and Recep Tayyip Erdogan, the prime minister, are known to be strict non-smokers.

Mr Erdogan banned smoking in his office building as early as 2003 and told a meeting last year that "the fight against cigarettes is as important as the fight against terrorism".

Gen Yasar Buyukanit, the army's chief of staff and one of the most prominent smokers in Turkey, said he would heed the new regulations. In a much-publicised episode, Mr Buyukanit had to leave the British defence ministry building to have a puff during a visit to London in January.

Mr Buyukanit praised the British ban on smoking, and said: "One has to obey the rules. If we [in Turkey] introduce them, we will follow them in the same way. We will smoke outside."

Signals like that will help society to accept the new law, campaigners said. "That is very, very important," Mr Kilinc said.

Still, enforcing the cigarette ban will be difficult in a country where a recent survey by parliament revealed that even 15.6 per cent of secondary school pupils in grades six, seven and eight are smokers. Existing non-smoking rules, such as the ones on city buses, are often ignored. Even as parliament was passing the new law in January, some deputies were thinking about ways around the new regulations.

"We will adapt," Deniz Bolukbasi, a leading member of the opposition Nationalist Movement Party, said at the time. "I'm not thinking of giving up smoking. I will find a way."

But such supporters of the law as Mr Korbey said that smoking habits in Turkey have changed already and that the new law will help to change them further. "When I started to campaign [against smoking] in 1994, everybody said I was crazy," Mr Korbey said. "Back then, people even smoked in hospitals and schools. That is no longer so."

By: http://www.thenational.ae/article/20080513/FOREIGN/627317912/1013/NEWS&Profile=1013
#77
LAW ON THE STRUCTURES AND DUTIES OF THE TREASURY
UNDERSECRETARIAT AND THE FOREIGN TRADE UNDERSECRETARIAT

Law Number: 4059 Date of Enactment: 9 December 1994
The Republic of Turkey
The Official Gazette
Date: 20 December 1994 No.: 22147

The Law Repealing the "Decree-Law 436 of 14 August 1991 for the Amendment of the Law on the Structure and Duties of the Treasury and Foreign Trade Undersecretariat", "the Decree-Law 256 of 29 July 1986 Supplementing a Provisional Article to the Law 3274 of 16 April 1986 on the Structure and Duties of the Treasury and Foreign Trade Undersecretariat", the "Decree-Law 303 of 21 December 1987 on the Transfer of Insurance Company Services to the Prime Ministry", the "Decree-Law 508 of 16 September 1993 for the Amendment of the Law on the Structure and Duties of the Treasury and Foreign Trade Undersecretariat", the "Decree-Law 534 of 3 June 1994 on the Structure and Duties of the Foreign Trade Undersecretariat" and the "Decree-Law 535 of 3 June 1994 on the Structure and Duties of the Treasury Undersecretariat" and Laying Down the Structures and Duties of the Treasury Undersecretariat and the Foreign Trade Undersecretariat.



PART ONE


The Objectives, Main Service Units, Duties, Structures, and Undersecretaries of the Treasury Undersecretariat and the Foreign Trade Undersecretariat


ARTICLE 1 - The purpose of this Law is to lay down principles concerning the establishment, structure, duties and powers of the Treasury Undersecretariat to assist in the determination of economic policies and, within the framework of these policies, to regulate, implement, and determine principles for the monitoring and better implementation of, investment activities, investment encouragement activities, and activities related to treasury operations, public finance, state economic enterprises, state shareholdings, bilateral and multilateral foreign economic relations, relations with international and regional economic and financial organizations, loans and grants received from and given to foreign countries and organizations, arrangements and operations in the area of capital flows under the finance policies of the country, banking and capital markets, overseas contracting services, the insurance sector and the exchange regime, and of the Foreign Trade Undersecretariat to assist in the determination of foreign trade policies and, within the framework of these policies, to regulate, implement, and ensure the monitoring and better implementation of, exports, encouragement of exports, imports, overseas contracting services, and bilateral and multilateral trade and economic relations. The Undersecretariats are attached to the Prime Minister, who may exercise his/her powers related to the management of the Undersecretariats through a Minister of State. The Undersecretariats consist of their respective central, provincial and overseas organizations and subsidiary organizations. The main service units of the Treasury Undersecretariat are eight General Directorates, namely the General Directorates of Public Finance, State Economic Enterprises, Foreign Economic Relations, Banking and Exchange, Insurance, Foreign Capital, Incentives and Implementation, and Economic Research, and the main service units of the Foreign Trade Undersecretariat are seven General Directorates, namely the General Directorates of Exports, Imports, Treaties, European Union Affairs, Free Zones, Standardization in Foreign Trade, and Economic Research and Evaluation.


ARTICLE 2 - The duties of the main service units of the Treasury Undersecretariat are as follows:


a) The duties of the General Directorate of Public Finance are: to carry out treasury operations; to find the cash that is required for the expenditures of the State; to effect the overseas payments of the State that are related to the general budget; to establish and operate accounting offices for internal payments and external payments; to keep, manage and invest the monies, precious stones and other assets of the State; to carry out the domestic borrowing operations of the State; to issue government bonds, treasury bills and other domestic borrowing instruments; to sell and cause to be sold them by the method of competitive bidding, the method of regular sale and other methods; to determine the quantities to be sold of such government bonds, treasury bills and other domestic borrowing instruments and their values and interest rates; to carry out the preparation, contract, issue, payment, early payment and registration procedures of all types of domestic and foreign borrowing in connection with the management of State debts; to carry out the procedures related to interest and lending that are assigned by the State; to effect, within the context of debt management, such payments as are directed at the performance of guarantees provided by the Treasury for domestic and foreign debts; to establish and operate a State Debts Accounting Office for this purpose; to keep an account of debt management; to create a database for Turkey's foreign debts; to keep a foreign debts file for this purpose; to carry out the procedures related to the provision of treasury guarantee under various laws and other legislation; to keep the necessary records; to determine the terms and conditions of guarantee and transfer; to establish and implement, in cooperation with the Central Bank of the Republic of Turkey, policies to ensure the circulation and stability of Turkish currency; to provide liaison between the Treasury and the Central Bank of the Republic of Turkey in matters concerning monetary policy; to carry out the cash management in line with the requirements of governmental agencies included in the general and annexed budget, organizations with a special budget, organizations with revolving capital, and funds, and in accordance with the general targets of monetary policy; to propose such measures as will encourage and regulate the performance of domestic and foreign private sectors' investment and capital operations in conformity with planned objectives within the framework of the country's financial policies; to determine the general policies related to funds established by Laws, Decree-Laws, Decisions of the Council of Ministers, regulations or other legislation; to ensure coordination between such funds, taking monetary and budgetary policies into consideration; to coordinate transfers between such funds; to evaluate the position, significance and impacts of such funds within macroeconomic equilibria and make proposals on this subject; to carry out work and make proposals so as to prevent resources from being allocated out of more than one fund to activities and sectors of a similar nature; to submit opinions on funds to be newly established; to carry out work related to the restructuring, liquidation or merger of funds and ensure coordination between the concerned organizations for this purpose; to plan the stamping of ordinary and commemorative coins and conduct the relations with the General Directorate of the Mint and the Duty Stamps Printing Office for this purpose; and to carry out other, similar duties as may be assigned by the Undersecretariat.


b) The duties of the General Directorate of State Economic Enterprises are: to carry out any and all operations required by treasury shareholding; to provide liaison between the Treasury and state economic enterprises; to prepare, and submit to the Council of Ministers for approval, the annual general investment and financing programmes of state economic enterprises by seeking the opinion of the Undersecretariat of the State Planning Organization; to monitor the implementation of these programmes and make the necessary changes to them on the basis of developments that take place during the year; to monitor the performance of the activities of state economic enterprises in accordance with laws, bylaws and regulations; to ensure that they operate efficiently and productively; to carry out any and all operations related to duties assigned by the Supreme Planning Board, the Privatization Supreme Board and other concerned authorities for their restructuring, including their downsizing, segmentation or merger so as to prepare them for being privatized, the cessation of part or all of their activities permanently or temporarily, their closure or winding-up, the rearrangement of their employment structure, and their reorganization; to carry out work concerning the development and implementation of agricultural support policies; to ensure the implementation of the fiscal provisions of the Petroleum Law, excluding those related to taxes; to carry out work and operations concerning the financing of the social security system in those areas which fall within the scope of activity of the Undersecretariat; and to carry out other, similar duties as may be assigned by the Undersecretariat.


c) The duties of the General Directorate of Foreign Economic Relations are: under the provisions of Law 173 of 15 July 1969, to perform the preparation, contract, security and guarantee procedures of all types of external public borrowing in the context of international economic cooperation; to conduct negotiations and correspondence leading to public borrowing from abroad; in connection with the utilization of foreign loans and foreign grants, other than cultural grants, obtained by the public sector and with the execution of contracts and agreements related to such loans and grants, to carry out any and all contacts, negotiations and necessary procedures to be carried out at home and abroad and engage in contacts and negotiations on financial and economic matters with foreign states and international economic and financial organizations and with their representative offices and representatives in connection with these matters; to represent the Republic of Turkey before foreign states, international economic and financial organizations, banks and funds for this purpose; to engage in contacts and negotiations with such organizations and their representative offices and representatives on economic and financial matters; to sign international agreements on such matters; to carry out any and all procedures related to such agreements; to determine policies concerning grants to be provided by Turkey to foreign countries; to contribute to such grants when necessary; and to regulate membership of, and representation before, international financial and economic organizations. The other duties of the General Directorate of Foreign Economic Relations are: to carry out any and all procedures for the payment of membership fees to such organizations and give bonds of commitment on behalf of the State as security for the capital contribution; to coordinate technical assistance provided by international financial and economic organizations; to prepare actual and estimated balance-of-payments data in the context of annual programmes; to evaluate such data; to make economic analyses; to issue permits for importation related to projects financed with foreign loans; to receive loans from foreign countries, institutions, organizations and financial markets in the capacity of debtor or guarantor in the name of the Republic of Turkey; to carry out the contract and guarantee procedures related to such loans; to take and give grants from and to foreign countries and organizations on behalf of the Republic of Turkey; to carry out the procedures related to such grants; to make economic and financial agreements with such countries, organizations and institutions; to carry out all types of contacts and negotiations to be carried out at home and abroad in connection with these procedures; to determine the terms and conditions of such loans and grants; to take any and all actions to alleviate the foreign debt burden, making use of financial instruments available in the financial markets for this purpose; to furnish guarantees, within the framework indicated in relevant laws, and perform the related procedures, for basic infrastructural projects requiring advanced technology to be carried out with the participation of the domestic and foreign private sector; to take part in the preparation and contract work for such projects; to take part in the coordination of relations with the European Union; to carry out the operations that fall within the scope of duty and activity of the Undersecretariat in this area; to assist in the determination of policies of economic and financial integration; to assess the economic and financial impacts of the customs union; to carry out the work of harmonizing economic and financial legislation; to conduct all contacts and negotiations with the European Union and agencies of the Union concerning the provision of loans and grants; to sign agreements related to such loans and grants; to ensure coordination with other Ministries and governmental agencies in such matters related to the European Union as fall within the scope of duty and activity of the Undersecretariat; to arrange the affairs of protocol related to such domestic and foreign contacts as fall within the scope of duty of the Undersecretariat; and to carry out other, similar duties as may be assigned by the Undersecretariat.


d) The duties of the General Directorate of Banking and Exchange are: to draft, implement, and monitor the implementation by concerned organizations of, legislation related to banking, the capital market, security exchanges, money-lending, financial leasing and the financial sector; to set out the guidelines of exchange policies; to draft; implement, enforce, and monitor and guide the implementation by concerned organizations of, legislation for the protection of the value of Turkish currency; to monitor and assess domestic and overseas developments related to the financial sector; to conduct the work of harmonizing financial legislation with the European Union; to provide liaison between the Undersecretariat and the Central Bank of the Republic of Turkey in matters related to the implementation of exchange policies and to the financial sector; to arrange the relations of the Capital Market Board, security exchanges and other financial sector institutions with the Ministry in charge of the Undersecretariat; to carry out such operations concerning overseas contracting services as fall within the area of duties of the Undersecretariat and ensure coordination between agencies and organizations concerned with such operations; and to carry out other, similar duties as may be assigned by the Undersecretariat.


e) The duties of the General Directorate of Insurance are: to carry out the duties prescribed by the Insurance Auditing Law 7397 of 30 December 1959, the Law 1160 of 1 August 1927 on the Monopoly of Reinsurance, and the insurance-related provisions of the Turkish Commercial Code 6762 of 9 July 1956, the Land Traffic Law 2918 of 18 October 1983, the Civilian Aviation Law 2920 of 19 October 1983 and other laws and by the supplements and amendments thereto; to draft, implement, and monitor and guide the implementation by those concerned of, legislation related to insurance; to conduct the work of harmonizing such legislation with the European Union; to take, implement, or monitor the implementation by concerned organizations of, measures for the development of the national insurance sector and for the protection of the insured; and to carry out other, similar duties as may be assigned by the Undersecretariat.


f) The duties of the General Directorate of Foreign Capital are: to draft legislation needed to ensure that the contributions expected from foreign capital towards national development under development plans and annual programmes materialize and to direct foreign capital towards the goal of national development; to carry out the tasks specified in the Law 6224 of 18 January 1954 for the Encouragement of Foreign Capital and in related legislation; to conduct procedures and negotiations concerning agreements to be made with foreign countries for the mutual encouragement and protection of investments; to evaluate investment projects with foreign capital, overseas investments and overseas contracting services under the legislation for the encouragement of investments; to issue incentive certificates for those of such investments and services that are found appropriate; to perform the closing procedures for investments with foreign capital carried out in accordance with the terms and conditions of incentive certificates; to apply the applicable penalties to investors acting against the terms and conditions of their incentive certificates; to provide the necessary organization and coordination for investments and services that require advanced technology and large financial resources to be carried out under the Build-Operate-Transfer model partly or wholly by local and/or foreign companies; to inspect and evaluate investments with foreign capital on location; and to carry out other, similar duties as may be assigned by the Undersecretariat.


g) The duties of the General Directorate of Incentives and Implementation are: to prepare, implement, monitor and evaluate the implementation of, and take the necessary measures for, incentives to support and guide investments and foreign-currency-earning services in line with the principles, targets and policies stated in development plans and annual programmes, also taking the objectives of export and import policies into consideration; to evaluate investment projects under the legislation to encourage investments; to issue incentive certificates for those of such projects which are found appropriate; to ensure coordination between organizations in charge of the implementation of incentives; to submit opinions to concerned organizations on disputes that arise in practice; to perform the closing procedures for investments carried out in accordance with the terms and conditions of Investment Incentive Certificates; to apply penalties to investors acting contrary to the terms and conditions of their investment incentive certificates; to perform the duties prescribed by legislation in connection with the implementation of investment incentives; to examine and evaluate investments on location; and to carry out other, similar duties as may be assigned by the Undersecretariat;


h) The duties of the General Directorate of Economic Research are: to monitor developments in the Turkish and world economy; to perform economic and financial analyses; to prepare assessment reports; to carry out surveys on the Turkish economy; to evaluate information and statistics already compiled; to develop and propose medium- and long-term alternative macroeconomic policies; to ensure coordination between different units in these areas; to create the research programme of the Undersecretariat in accordance with the needs of the several units; to implement this research programme in cooperation with concerned organizations when necessary; to establish an Economic Information Centre in order to ensure that information is made available to users more speedily; to determine the working principles of this Centre; to manage the Information Processing Centre; to store information; to make proposals on organization and work methods in order to ensure that the Undersecretariat operates more efficiently and productively; to coordinate such domestic and overseas seminars and short-term training activities as are needed for the personnel; to monitor the implementation by the organization of development plans, annual programmes, monitoring decisions and executive plans; to ensure coordination in this area; to conduct publishing and documentation activities; and to carry out other, similar duties as may be assigned by the Undersecretariat.


ARTICLE 3 - The duties of the main service units of the Foreign Trade Undersecretariat are as follows:


a) The duties of the General Directorate of Exports are: to ensure that exports are regulated, supported and developed to the benefit of the national economy and in line with the principles, targets and policies laid down in development plans and annual programmes; to set out principles for the implementation of export policies in the exercise of powers conferred upon public agencies under various legislation; to ensure coordination between agencies concerned with implementation; to submit opinions on new arrangements to be introduced by such agencies in connection with exports; to take measures for the supervision, inspection and steering of exports at every stage; to make arrangements in connection with these matters; to take the necessary measures on the basis of specific commodities and countries; to investigate possibilities of developing exports on the basis of specific commodities and countries and ways of obtaining the maximum amount of foreign currency income from such possibilities; to make proposals for this purpose; to prepare and implement exports legislation, including the Export Regime Decree; to prepare, implement, and monitor and evaluate the implementation of, the necessary measures to support and steer exports; to carry out preparatory work for the determination of the support purchase prices of agricultural products that are the subject of exports; to determine, implement, and ensure the implementation of, principles concerning the evaluation by way of exports of support stocks; to set out, and notify to concerned units and organizations, the principles related to commodity - and country-specific policies in connection with export loans and other state assistance; to carry out work for the elimination or amelioration of restrictive measures implemented against our exports; to set out the procedures and principles of mutual trade practices such as conditional transactions and off-sets; to lay down, and monitor the compliance with, the working principles of Exporters' Unions and their higher bodies; to assist their activities; to organize conferences, seminars and similar events at home and abroad for the purpose of promoting our export products in order to ensure the development of national exports; to set out and implement principles concerning the organization of fairs and exhibitions abroad; to make arrangements in the area of shore and border trade; to prepare, implement, monitor and evaluate the implementation of, and take the necessary measures for, such measures for the encouragement of exports as are envisaged for the promotion and steering of exports and foreign-currency-earning services in line with the principles, targets and policies laid down in development plans and annual programmes, also considering the targets of export and import policies; to evaluate export projects under export encouragement decisions and communiqués issued on the basis of such decisions; to issue "Export Incentive Certificates" for those of such projects which are found appropriate; to submit opinions to concerned organizations in the event of disputes arising in practice; to apply the necessary penalties to those acting against the terms and conditions of export incentive certificates; and to carry out other, similar duties as may be assigned by the Undersecretariat.


b) The duties of the General Directorate of Imports are: to ensure that imports are conducted within the framework of principles, targets and policies laid down in international treaties, development plans and annual programmes; to set out principles for the implementation of import policies in the exercise of powers conferred upon public agencies under various legislation; to submit opinions on new arrangements to be introduced by such agencies in connection with imports; to prepare imports legislation, including the Import Regime Decree, propose commodity-specific policies, and implement the same; to issue permits related to imports; to ensure coordination with concerned agencies and organizations; to monitor the requirements of the domestic market and industry, taking domestic and external economic developments into consideration; to examine, execute, and ensure the implementation of, preparations related to fiscal charges to be applied on imported goods; to take measures ensuring that imported goods are imported in accordance with world markets, and implement and monitor such measures; to set out, and monitor the compliance with, the working principles of Importers' Unions and their higher bodies; to assist their activities; to issue certificates related to imports; to arrange and conduct the import-related procedures of international fairs organized in our country; to carry out the duties assigned by the Law 3577 of 14 June 1989 for the Prevention of Unfair Competition in Imports; and to carry out other, similar duties as may be assigned by the Undersecretariat.


c) The duties of the General Directorate of Agreements are: to draft bilateral trade agreements, bilateral trade, industrial and technical cooperation agreements, and multilateral trade agreements, in cooperation with concerned Ministries and agencies when necessary, within the framework of development plans and overall economic policies; to conduct preparatory work and negotiations concerning international and regional trade cooperation agreements and protocols; to draft, put into force, and implement, legislation concerning the implementation of bilateral economic cooperation and trade agreements and multilateral trade agreements; to regulate trade relations with countries that do not have an "Economic Cooperation and Trade Agreement" with our country and ensure the cooperation required for this activity; to conduct activities related to the establishment, development and coordination of trade relations with the Turkic States; to draft bilateral trade agreements and bilateral trade, industrial and technical cooperation agreements to be made with the Turkic States, in cooperation with concerned Ministries and agencies when necessary; to conduct negotiations, and ensure coordination between concerned Ministries and agencies, in connection with such agreements; to conduct the practices that fall within the area of duties of the Undersecretariat, and coordinate concerned agencies and organizations, in connection with overseas contracting services; to arrange protocol activities related to foreign contacts that fall within the area of duties of the Undersecretariat; and to carry out other, similar duties as may be assigned by the Undersecretariat.


d) The duties of the General Directorate of European Union Affairs are: to ensure that relations with the European Union in subjects that fall within the area of duties and activities of the Undersecretariat are conducted in line with the objectives laid down in development plans and annual programs; to determine ............ within the framework of objectives set by the Government towards the European Union; to carry out the necessary work for the determination of short-, medium- and long-term policies in economic and commercial relations, ensure that measures related to implementation in these areas are taken, and make proposals for this purpose; to ensure the proper conduct of the implementation of those subjects in the Association Treaty, and the Agreements and Protocols annexed thereto, between the European Union and Turkey that fall within the area of duties of the Undersecretariat; to carry out preparatory work related to trade agreements to be made in parallel to agreements made by the European Union with third countries in the context of the common trade policy, and conduct the relations with concerned Ministries and agencies in these areas; to make the necessary contacts and meetings with agencies and bodies of the Union in subjects that fall within the area of duties of the Undersecretariat; to carry out the necessary adjustment and preparation work related to decisions taken by the European Union-Turkey Association Organs in subjects that fall within the area of duties of the Undersecretariat; to conduct the preparations related to negotiations under way with the European Union on trade issues; to make evaluations, and assess proposals, on the economic and commercial effects of the customs union that is in the process of being established between the European Union and Turkey; to carry out the necessary work for the determination of policies related to negotiations underway with the European Union in the area of trade in services in harmony with the general trade policy; to ensure the necessary coordination in the comparison and approximation of legislation in subjects that fall within the area of duties and activities of the Undersecretariat; to ensure the coordination of training activities conducted within the Undersecretariat on issues related to the European Union; and to carry out other, similar duties as may be assigned by the Undersecretariat.


e) The duties of the General Directorate of Free Zones are: to carry out work on the determination of principles and policies concerning the establishment, management and operation of free zones in the context of development plans and annual programmes; to conduct research, planning and coordination activities for this purpose; to make arrangements under the Free Zones Law 3218 of 6 June 1985 and the related legislation; to determine activities that may be undertaken in free zones such as production, purchasing and selling, storing, leasing, assembly and disassembly, repair and maintenance, off-shore banking, banking, insurance, financial leasing and others; to issue "Operation Licenses" to natural and legal persons to operate in free zones, or cancel certificates already issued; and to carry out other, similar duties as may be assigned by the Undersecretariat.


f) The duties of the General Directorate of Standardization in Foreign Trade are: to ensure the standardization of commodities that are a subject of foreign trade; to draft and implement legislation, including the Standardization-in-Foreign-Trade Regime Decree, for the inspection of exports and imports with regard to quality and standards; to introduce into compulsory application those Turkish Standards that are found necessary, with the approval of the Minister who is in charge of the Undersecretariat, and carry out or cause to be carried out the inspection required for such standards; to take the measures indicated in Law 1705 of 10 June 1930 in the area of foreign trade only; to coordinate the activities of Inspectors for Standardization in Foreign Trade and Directorates of Laboratories; and to carry out other, similar duties as may be assigned by the Undersecretariat.


g) The duties of the General Directorate of Economic Research and Evaluation are: to constantly monitor and evaluate developments in the Turkish and global economy and trade; to carry out studies on the Turkish economy and foreign trade; to evaluate information and statistics already compiled on these subjects; to carry out research in subjects that fall within the area of duties of the Undersecretariat; to establish and operate a Foreign Trade Information Centre within the General Directorate in order to ensure that information is made available to users more speedily; to carry out research in economic and commercial fields that are required by units of the Undersecretariat; to manage the Information Processing Centre; to store information; to conduct publishing and documentation activities; to monitor the implementation of development plans, annual programmes, monitoring decisions and executive plans in subjects that fall within the area of duties and activities of the Undersecretariat, and ensure coordination in this area; to draw up and issue import and export certificates; and to carry out other, similar duties as may be assigned by the Undersecretariat.


ARTICLE 4 - The Undersecretariats consist of a central organization, main service units, advisory and inspection units, and auxiliary units. The central organizations of the Undersecretariats are shown in sections (A) and (B) of the annexed schedules. The Undersecretaries are the highest superiors of their respective organizations. They have the duty of carrying out the activities of their respective Undersecretariats in accordance with the general policy of the Government, national security, development plans and annual programmes and ensuring cooperation and coordination with other governmental agencies in subjects that fall within the areas of duties and activities of their respective Undersecretariats. They are accountable to the Prime Ministry or a Minister of State to be appointed for this purpose. Three Deputy Undersecretaries each shall be appointed to assist the Undersecretaries. The latter, and the administrators of the Undersecretariats and attached agencies at all levels, may, when necessary, transfer part of their powers to their inferiors, provided that they clearly specify the limits of powers so transferred in writing. However, such transfer of powers shall not relieve the transferring superior of responsibility.


./..
#78
LAW AMENDING THE EXECUTION AND BANKRUPTCY CODE

(Published in the Turkish Official Gazette dated June 30, 2003 and numbered 25184)


Law No. 4949                            Date of Adoption : 17.7.2003


ARTICLE 1. – First paragraph of article 4 of the Execution and Bankruptcy Code 2004 dated 9/6/1932 is hereby amended and shall hereafter read as follows:

"Complaints on and objections against the decisions and proceedings of the execution and bankruptcy offices will be in the jurisdiction of the execution court judge or other judges vested with this jurisdiction by the applicable laws. If and to the extent required, the Ministry of Justice may establish several chambers and units in an execution court with prior approbation of the Higher Board of Judges and Prosecutors,  and thereupon, chambers and units of the execution court will be serially numbered. Principles of distribution of files among the chambers and units of the execution court will be determined by the Higher Board of Judges and Prosecutors. Each execution court judge will have jurisdiction on complaints on and objections against the decisions and proceedings of the execution and bankruptcy offices which are affiliated to him in rotation by decisions of the Judiciary Power Justice Commission, and will accordingly supervise and audit them, and will deal with the administrative affairs in connection therewith."

ARTICLE  2. -  First sentence of first paragraph of article 13 of the Code 2004 is hereby amended and shall hereafter read as follows:

"Execution and bankruptcy offices are under continuous and permanent supervision and control of the execution court judge in accordance with the principles envisaged in article 4 hereof."

ARTICLE  3. – The following paragraph is hereby added to article 14 of the Code 2004:

"The Supreme Court of Appeals shall regularly publish all of its decrees relating to execution and bankruptcy files, and the principles in connection therewith will be set down in a regulation to be issued by the Supreme Court of Appeals."

ARTICLE  4. – Third paragraph of article 18 of the Code 2004 is hereby amended and shall hereafter read as follows:

"Unless otherwise specifically provided, the execution court decides in its discretion whether a statement is required to be taken from the execution office against which the complaint is lodged, or not, and whether a hearing is needed or not, and if a hearing is deemed necessary, the court invites the sides to a hearing as soon as possible, and takes and pronounces its judgment, irrespective of presence or absence of the sides in the hearing. If a hearing is deemed unnecessary, the execution court takes and pronounces its judgment within no later than ten days following referral of the dispute to the court. Hearings may be deferred by not more than thirty days and only in the case of necessity."

ARTICLE 5. – Second paragraph of article 23 of the Code 2004 is hereby amended and shall hereafter read as follows:

"The term 'Chattel Mortgage' refers to pledges in personal property conditioned upon delivery thereof, and pledges specified in article 940 of the Turkish Civil Code, and commercial enterprise pledges, and rights of lien, and pledges on receivables and other rights of claim."

ARTICLE  6. – In the last sentence of forth paragraph of article 24 of the Code 2004, the phrase "as of the date of start of execution proceeding" is hereby changed to and replaced by the phrase "as of the date the attachment is levied".

ARTICLE 7. – The following article 25/b is hereby added after article 25/a of the Code 2004:

"Making available a specialist for enforcement of court decrees ordering delivery of child and establishment of personal contact with child:

ARTICLE 25/b.– Court writs ordering delivery of child and establishment of personal contact with child shall be enforced by a social worker, pedagogist, psychologist or child development specialist appointed or assigned by the Social Services and Child Protection Society, or in their absence, by an educationalist, together with the execution office manager."

ARTICLE  8. – Last sentence of forth paragraph of article 26 of the Code 2004 is hereby amended and shall hereafter read as follows:

"the amount in excess, if any, shall be deposited in the name of the debtor in one of the banks designated as specified and qualified in the regulation to be adopted and issued by the Ministry of Justice."

ARTICLE  9. – Heading of article 30 of the Code 2004 is hereby amended as "Writs Ordering Performance or Non-Performance", and the following last paragraph is hereby added to that article:

"If, after fulfillment of a writ of execution for performance or non-performance, the debtor takes an action in violation of the writ of execution, the original writ of execution shall be enforced compulsorily without any further or separate writ or commandment from the court."

ARTICLE  10. – In the second sentence of article 32 of the Code 2004, the phrase ".... (the debtor) will be sentenced to imprisonment" is hereby changed to and replaced by the phrase ".... (the debtor) will be sentenced to imprisonment, and if he does not make a declaration of property...."

ARTICLE  11. – Fifth paragraph of article 44 of the Code 2004 is hereby amended and shall hereafter read as follows:

"Upon receipt of the declaration of property, the concerned authority will inform the land or ship registers and the Turkish Patent Institute; and thereupon, an annotation of restriction of the rights of assignment for a period of two months will be entered and recorded in the relevant register, and it is separately reported to the Turkish Bankers' Association."

ARTICLE  12. – Sub-paragraph (3) of second paragraph of article 58 of the Code 2004 is hereby amended and shall hereafter read as follows:

"(3) Amount in Turkish currency of the debt or the security requested, and in the case of interest-bearing debts, amount of interests and the first day of accrual of interests, and if the debt or the security is in foreign currency, the date of exchange rate applicable on the claim, and the amount of interests;"

ARTICLE 13. – Second sentence of first paragraph and second paragraph of article 62 of the Code 2004 are hereby amended and shall hereafter read as follows, and the following paragraph is hereby added after the second paragraph, and other paragraphs are renumbered accordingly:

"If a bill of exception (petition of objection) is delivered to an execution office other than the execution office where the execution proceeding is pending, that execution office will receive the bill of exception and collect the related costs and fees and promptly transmit the bill of exception to the competent execution office; and the related execution officer will be held personally liable for the costs and fees not collected as above."

"A copy of bill of exception will be sent to and served on the creditor with a memorandum within three days, and the cost of service of process will be paid out of the advance funds deposited by the creditor pursuant to article 59 hereof."

"The debtor or his attorney is under obligation to designate, with the bill of exception, an address of the debtor within the borders of Turkey for the notices and subpoenas in the course of lawsuit and legal proceedings. If the debtor changes his notice address but fails to designate a new address within the borders of Turkey, and the officer in charge of service of process fails to find out his new address within the borders of Turkey, all notices, writs and subpoenas delivered to the address shown in the bill of claims will be deemed to have been validly and duly served on the debtor."

ARTICLE 14. – Article 63 of the Code 2004 is hereby amended and shall hereafter read as follows:

"Article 63.– Except for the exceptions clearly derived out of the text of the bill of exchange relied upon by the creditor, the objecting debtor can, in the hearing for dismissal of objections, not change or expand the causes of his objections."



ARTICLE 15. – Heading, sub-heading and first paragraph of article 67 of the Code 2004 are hereby amended and shall hereafter read as follows:

"6- Invalidation of Objection:

a) Cancellation of Objection:

Upon objection to his bill of claims for an execution proceeding, the creditor may, within one year after receipt of the bill of exception, go to the court and claim cancellation of objection by proving existence of the claimed debt in accordance with general law provisions pertaining thereto."

ARTICLE 16. – Heading, first paragraph and first sentence of last paragraph of article 68 of the Code 2004 are hereby amended and shall hereafter read as follows:

"b)  Final Dismissal of Objection:

If the disputed and objected execution proceeding of the creditor is relied upon a debt admission document bearing an acknowledgement of signature or certified by a notary public or upon a receipt or certificate duly issued by official authorities or other authorized bodies within their limits of authorization, the creditor may, within six months after receipt of the bill of exception, request dismissal of the objection. If dismissal of the objection is not requested by the end of this period, the creditor cannot restart an 'execution proceeding without an official deed' as a direct estoppel.

If the request for dismissal of the objection is accepted and honored for reasons as to the merits of the case, the debtor shall be sentenced to pay an indemnity being not less than forty percent of the claimed amount, and if the request for dismissal of the objection is refused for the same reasons, the creditor shall be sentenced to pay an indemnity being not less than forty percent of the claimed amount, upon demand of the other side."

ARTICLE  17. – Heading and first paragraph of article 68/a of the Code 2004 are hereby amended and shall hereafter read as follows:

"c)  Temporary Dismissal of Objection:

If the execution proceeding is relied upon an unofficial document and the debtor denies signature at the time of objection, the creditor may, within six months after receipt of the bill of exception, request dismissal of the objection temporarily, and in this case, the execution court judge will hear both sides and take their statements."

ARTICLE  18. – Last sentence of first paragraph of article 68/b of the Code 2004 is hereby amended and shall hereafter read as follows, and in the second paragraph thereof, the word "... receipt" is hereby replaced by the word "... dispatch", and in the third paragraph thereof, "the phrase "notices and" is hereby added after the words "account statements and", and the following paragraph is hereby added after the third paragraph.


"Change in the address shown in the agreement becomes effective only if and after a notice designating a new address within the borders of Turkey is duly sent to the lender via a notary public, and if a new address is not designated and notified as above, the date of receipt of the account statement at the former address will be deemed and treated as the date of delivery of the account statement."

"An objection of the borrower to the contents of a notice relating to balancing and closing of the credit account or repayment of the debt does not preclude the results of non-objection to the contents of account statements relating to interest accrual periods which have been delivered and served prior to the notice relating to balancing and closing of the credit account or repayment of the debt and have become final upon non-objection thereto. In this case, the provisions of second paragraph hereof will be applicable on the finalized account statements of the previous interest periods."

ARTICLE  19. – The following sentence is hereby added to second paragraph of article 79 of the Code 2004:

"The properties registered in an official registry may also be attached directly by the execution office hearing the execution proceeding, by having such attachment entered into the said registry."

ARTICLE  20. – In the first sentence of second paragraph of article 85 of the Code 2004, the phrase "or the persons possessing the properties jointly with the debtor" is hereby added immediately after the words "the debtor", and the phrase "or to the persons possessing the properties jointly with the debtor" is hereby added immediately after the words "to the debtor".

ARTICLE  21. – The following sentences are hereby added at the end of second paragraph and after the first sentence of third paragraph of article 88 of the Code 2004, and the forth and fifth paragraphs thereof are hereby amended and shall hereafter read as follows:

"When the movable properties possessed by a third person are attached, the properties will be left in custody to the third person as a trustee thereof, upon consent of the creditor and agreement of the third person."

"Movable properties covered by a commercial enterprise pledge can be seized and taken under custody only after the execution office decides to sell them."

"The Ministry may open and run warehouses and garages at sites deemed necessary and appropriate for protection, custody and safeguarding of the distrained properties, or may authorize the Justice Ministry Organization Support Foundation to open and run such warehouses and garages."

"The execution office will, ex officio, request the relevant persons to remove and retake the possession of the distrained properties which are kept in customs in the warehouses or garages or by third persons as trustee thereof, and are no more legally required to be kept in custody, within a reasonable period to be granted by the execution office. If the distrained properties are not removed and taken back by the end of this period, the execution office manager will, by a decree of the execution court, sell the distrained properties in accordance with the law provisions pertaining to sale of movable properties.  First, the expenses of custody, trustee and sale will be paid out of the proceeds of sale, and the balance will be kept in custody pursuant to the provisions of article 9. Any disputes in connection therewith will be referred to and resolved by the execution court in simple trial procedures."

ARTICLE  22. – Third paragraph and last sentence of fifth paragraph of article 89 of the Code 2004 are hereby amended and shall hereafter read as follows:

"If the third person fails to object to the warrant of distraint within seven days of the date of receipt, the properties will be deemed to be in his possession and the debts will be deemed to be under his responsibility, and a second warrant of distraint will be sent to him, stating that he has not raised a timely objection to the first warrant of distraint and therefore, the properties are deemed to be in his possession and the debts are deemed to be under his responsibility. It will further be stated in this second warrant of distraint that the recipient third person may raise an objection for the reasons set forth in the second paragraph within seven days of receipt of the second warrant of distraint, or otherwise, he is requested to pay to the execution office the debts deemed to be under his responsibility or to deliver to the execution office the properties deemed to be in his possession. If the third person does not raise a timely objection to the second warrant of distraint and does not pay to the execution office the debts deemed to be under his responsibility or does not deliver to the execution office the properties deemed to be in his possession, the third person will be warned by a further notice that he should pay the debts and deliver the properties to the execution office within fifteen days or alternatively, he should apply to the court for a declaratory judgment for determination of non-existence of debt, or otherwise, legal compulsory force will be applied to force him to deliver the properties deemed to be in his possession or to pay the debts deemed to be under his responsibility, as the case may be. If the third person, within twenty days after receipt of this notice, delivers to the relevant execution office a proof evidencing that an application for a declaratory judgment for determination of non-existence of debt has been timely made to the competent court in the location of execution proceeding or in his residence place, the pending legal compulsory forced proceedings will be suspended until a final declaratory judgment is taken by the court. The periods referred to in article 106 will not count during this period of suspension.  In this legal proceeding for declaratory judgment, the third person is obliged to prove that he does not owe to the debtor or the properties are not owned by the debtor. If the third person loses this lawsuit, the court will sentence him to pay an indemnity not less than forty percent of the amount in dispute. The legal proceedings for declaratory judgment for determination of non-existence of debt that may be brought forward under this paragraph are subject to a fixed court fee."

"In any case, the third person may sue to the debtor and the bad faith creditor for refund of the money which he is forced to pay or for restitution of the properties which he is forced to deliver."

ARTICLE  23. – The following paragraph is hereby added at the end of article 91 of the Code 2004:

"In the case of change of ownership of the distrained properties, the provisions of article 148/a shall be applicable."

ARTICLE  24. – Third paragraph of article 92 of the Code 2004 is hereby amended and shall hereafter read as follows:

"The execution office will take all actions and measures deemed necessary and advisable for management and operation of the real estate and for protection of its annexes. Accordingly, if the real estate is under tenancy, the execution office will order the tenant to pay the future rentals to the execution office. Upon demand of the pledgee creditor, in order to avoid any probable damages, the annexes of the real estate will be safeguarded and protected so as not to prejudice the operations therein. Costs of administration and safeguarding will be paid out of the proceeds of sale with priority."

ARTICLE 25. – Third sentence of first paragraph of article 94 of the Code 2004 is hereby deleted, and the following sentences are added after second sentence thereof:

"If share certificates or temporary share certificates have not been issued for the capital shares of a joint-stock company, the capital shares held and owned by the debtor will be distrained and sequestered by a notice of the execution office to the company. The distraint of shares is required to be recorded in the share book of the company; providing, however, that the shares are considered to have been distrained and sequestered as of the date of receipt of the notice by the company even if the distraint of shares is not recorded in the share book. Then, the distraint of shares will be reported by the execution office to the Trade Registry for registration therein. Thereafter, transfer of the distrained and sequestered shares will be null and void if and to the extent such transfer infringes the rights of the creditor. Sale of the distrained and sequestered shares is subject to the same procedures with sale of the movable properties. As for the other movable properties, the execution office will take actions and measures in order to prevent transfer of them to third persons."

ARTICLE  26. – Third paragraph of article 111 of the Code 2004 is hereby amended and shall hereafter read as follows:

"The periods referred to in articles 106 and 150/e will not count until the end of the term of contract or contracts signed in the execution office by and between the debtor and the creditor for repayment of the debt in installments. However, if and to the extent the total term of the said contract or contracts exceeds ten years, these periods will resume as of the end of ten years."

ARTICLE 27. – First paragraph of article 114 of the Code 2004 is hereby amended and shall hereafter read as follows, and the following sentence is hereby added to the second paragraph thereof:

"Sales will be realized by public auction. Place, date and time of first and second public auctions will be announced and proclaimed to public in advance."

"If it is decided to publish the public announcement in a nationwide newspaper, the announcement will be published in one of the first five newspapers with the highest nationwide circulation as of the date of request for sale."

ARTICLE 28. – In the second sentence of first paragraph of article 115 of the Code 2004, the phrase "75%" is hereby changed to and replaced by the phrase "sixty percent".

ARTICLE 29. – First paragraph of article 116 of the Code 2004 is hereby amended and shall hereafter read as follows:

"Second auction will be held in the fifth day after the first auction. If the fifth day after the first auction coincides with an official holiday, second auction will be held in the first business day following the official holiday. Provisions of article 114 are applicable also on the second auction."

ARTICLE 30. – Third sentence of first paragraph of article 118 of the Code 2004 is hereby amended and shall hereafter read as follows:

"The sold properties will not be delivered physically until the award becomes final."

ARTICLE  31. – Sub-paragraph (5) of article 119 of the Code 2004 is hereby amended and shall hereafter read as follows:

"5) If the estimated value of the distrained property does not exceed one billion lira."

ARTICLE 32. – In sub-paragraph (3) of second paragraph of article 126 of the Code 2004, the phrase "seventy-five percent" is hereby changed to and replaced by the phrase "sixty percent", and in the same sub-paragraph, the phrase in parentheses is hereby changed to and replaced by the following phrase: "If the tenth day coincides with an official holiday, it is obligatory to determine the first business day following the end of the official holiday as the date of second auction and to clearly show in the announcement the place, date and time of second auction."

ARTICLE 33. – The following sentence is hereby added after the first sentence of second paragraph of article 128 of the Code 2004, and the following paragraph is hereby added after the second paragraph thereof:

"If any encumbrance affecting the preassessed value of the real estate is found out, the execution office will have the value of the real estate reassessed for sale purposes."

"In the case of subsidized annexes of the real estate offered for sale, the execution office will have the value of such annexes assessed separately. Before the sale, the execution office will request information from the relevant authorities about the financial obligations such as taxes, duties and funds on these properties. Upon demand of the creditor requesting the sale, these properties may be excluded from the sale, or alternatively, they may be offered for sale together with the real estate in accordance with the provisions of article 129 by taking into consideration the public debts such as taxes, duties and funds arising out of the ownership of properties."

ARTICLE 34. – The following article 128/a is hereby added after article 128 of the Code 2004:

"Complaints on value assessment:

ARTICLE 128/a- Within seven days after receipt of the value assessment report, the relevant persons may file a bill of complaints to the execution court having jurisdiction in venue in the location of the execution office issuing the report. In this case, if the required costs and fees are deposited to the court within seven days after the date of complaint, a new expert survey and inquiry may be ordered, or otherwise, the complaint will be finally dismissed and refused without any further formality.

A new value assessment cannot be demanded before the end of one year following the date of the finalized value assessment. However, a new value assessment may be demanded immediately upon occurrence of natural disasters or similar other events leading to substantial changes in the municipal development and reconstruction plan.

If the bill of complaints against value assessment is filed to a non-competent execution court, the non-competent execution court will, within no later than ten days following the date of filing, make a disclaimer of jurisdiction upon examination of the case file.

Orders and judgments of the execution court taken pursuant to this article shall be final."

ARTICLE 35. – In first paragraph of article 129 of the Code 2004, the phrase "seventy-five" is hereby changed to and replaced by the phrase "sixty".

ARTICLE  36. – In second sentence of article 130 of the Code 2004, the phrase "twenty days" is hereby changed to and replaced by the phrase "ten days".

ARTICLE 37. – In second sentence of first paragraph of article 133 of the Code 2004, the phrase "to the first paragraph of" is hereby changed to and replaced by the phrase "to the conditions sought for in", and in fifth sentence thereof, the phrase "in the second paragraph of the article" is hereby changed to and replaced by the phrase "in the article".

ARTICLE 38. – The following sentence is hereby added to first paragraph of article 134 of the Code 2004, and in the first sentence of second paragraph, the phrase "providing that they designate an address within the borders of Turkey" is hereby added after the word "bidders", and the following sentence is hereby added at the end of second paragraph, and the following third and forth paragraphs are hereby added after second paragraph, and the subsequent paragraphs are renumbered accordingly.

"The execution office decides the method of administration and safeguarding of the real estate applicable until the award becomes final."

"If the court does not enter into merits of the case and the complaint is dismissed and refused for that reason, no fine will be inflicted."

"If the complaint for cancellation of auction sale is filed to an execution court or other juridical court which does not have jurisdiction in subject matter or in venue, then the execution court or other juridical court, as the case may be, will, within maximum ten days, make a disclaimer of jurisdiction in subject matter or in venue upon examination of the case file. Such disclaimers shall be final."

"Even if a complaint is filed for cancellation of auction sale, the purchaser of the real estate, providing that he has not bid in the auction for deduction of the sale price from the outstanding debts owed by the owner to him, is obliged to pay the sale price in cash immediately or by the end of the period to be granted according to article 130 hereof. The execution office manager will deposit the paid sale price in interest-bearing bank accounts until the order or judgment relating to the complaint for cancellation of auction sale becomes final. When the court order or judgment accepting or dismissing the complaint for cancellation of auction sale becomes final, the sale price will be paid or refunded to the relevant persons together with interests thereof."

ARTICLE 39. – The following article 142/a is hereby added after article 142 of the Code 2004:

"Payment Against Guarantee:

ARTICLE 142/a.–  If a bill of complaints or a bill of exceptions is filed against the list of collocation, each creditor who receives the notice and is named in the list of collocation may collect his share by filing to the execution office a final letter of guarantee received from a bank. The provisions of second paragraph of article 36 are also applicable.

In the letter of guarantee, the issuing bank must agree and undertake to pay to the execution office upon first written demand of the execution office both the amount collected by the creditor from the execution office as above, and the interests accrued thereon until the date of repayment, if and when that amount is required to be repaid and refunded to the execution office fully or partially. The amount to be guaranteed by a letter of guarantee pursuant to the above principles will be determined by the execution office."

ARTICLE 40. – First and sixth paragraphs of article 143 of the Code 2004 are hereby amended and shall hereafter read as follows and the following paragraph is also added to the article:

"If the debt is not recovered fully to the creditor and the conditions precedent of certificate of insolvency are satisfied, the execution office will promptly issue and deliver a certificate of insolvency for the balance of debt to the creditor, with a copy thereof to the debtor. The certificate of insolvency is exempt from all taxes and duties.
A copy of the certificate of insolvency will be sent to an execution office appointed in each city center by the Ministry of Justice for registration in a special registry kept by that execution office. Registry of certificates of insolvency is open to public, and the contents and the method of keeping of this registry will be regulated by a regulation to be adopted and issued by the Ministry of Justice."

"This debt becomes a prescriptive debt against the debtor upon lapse of twenty years following the date of the certificate of insolvency. If the creditor fails to claim payment of the debt within one year following the date of partition of inheritance, the heirs of the debtor may plead invalidation of debt by prescription."

"The debtor may at any time pay his debt together with the accrued interests to the execution office issuing the certificate of insolvency. Upon this payment, the execution office will pay the money to the creditor or if required, deposit the money to a bank account in accordance with the provisions of article 9 hereof. Upon full payment of the debt as above, the certificate of insolvency will be deleted from the registry, and the debtor will be given a document verifying that the debt is fully paid and the certificate of insolvency is deleted from the registry. Likewise, if and when the execution proceeding is null and void or is cancelled or it is proven by a final court judgment that the debtor is not indebted or the creditor withdraws and waives from the execution proceeding, the certificate of insolvency will be deleted from the registry, and a document of proof will be given to the debtor."

ARTICLE  41. – The following article 148/a is hereby added after article 148 of the Code 2004:

"Obligation to Designate Address:

ARTICLE  148/a. – Parties to a mortgage deed/contract or subsequent purchasers of the mortgaged real estate or their successors are under obligation to designate a notice address within the borders of Turkey to the land registry, or otherwise, their demand of registration will be refused and dismissed by the land registry.

Change of address becomes effective only if and when it is duly notified to the land registry. In the case of failure in notification of the new address, all notices and correspondences will be deemed to be validly and duly received as of the date of delivery at the former address."

ARTICLE  42. – The following sentence is hereby added after first sentence of article 150/b of the Code 2004:

"providing, however, that such process does not prejudice to the rights arising out of articles 132 and 135."

ARTICLE 43. – Article 150/i of the Code 2004 is hereby amended and shall hereafter read as follows:

"Article 150/i.- Even if the mortgage deed submitted and filed by the lender of a cash or non-cash credit operating in the form of a current account payable or in the form of a short, medium or long-term credit does not contain an unconditional admission of pecuniary debt, in the event that the lender furnishes to the execution office manager a notary-certified copy of a proof evidencing that an account statement containing a notice of closing and balancing of current account of the borrower or a notice of acceleration of short, medium or long-term credit account of the borrower or notice of demand of reimbursement of the non-cash credit paid by the lender or a notice of demand of repayment of the debt has been served on the borrower through a notary public by delivery to the borrower's address given in the credit agreement or address shown on the mortgage deed or is deemed to have been duly served on the borrower pursuant to article 68/b hereof, the execution office manager will apply the provisions of article 149.  Provided, however, that the borrower retains and reserves his right to file a bill of complaints to the execution court by proving that he has raised objection through a notary public to the said account statement or notice of demand of repayment of debt or notice of demand of reimbursement of the non-cash credit paid by the lender within eight days after the date it is delivered or deemed to have been delivered to the borrower pursuant to article 68/b hereof.  In this case, if the lender proves existence of the debt with supporting documents in accordance with article 68/b, the bill of complaints of the borrower will be refused and dismissed.  In the course of trial in the execution court, 'stay of execution proceeding' cannot be ordered unless and until the debtor submits and files an official document or a signature-admitted or certified document verifying that the debt is terminated or deferred. Delivery or deemed delivery of account statement, demand of reimbursement or notice of repayment to a mortgaged real estate owner third person will constitute a demand of payment as defined and specified in article 887 of the Turkish Civil Code."

ARTICLE 44. – In second sentence of second paragraph of article 166 of the Code 2004, the phrase "at the date of adjudication of bankruptcy" is hereby added after the phrase "adjudication of bankruptcy", and in second and third sentences thereof, the words "trajı" is corrected as "tirajı" (Translator's note: it is correction of a spelling mistake, and this word means 'circulation').

ARTICLE  45. – Sub-paragraph (6) of first paragraph of article 168 of the Code 2004 is hereby amended and shall hereafter read as follows:

"6. Notice warning the debtor that if no objection is raised and the debt is not repaid, the debtor should make a declaration of property within ten days according to article 74, and if an objection is raised, but dismissed, the debtor should make a declaration of property within three days according to article 75, and that if the debtor fails to make a declaration of property as above or makes an untrue declaration of property, he will separately be penalized by imprisonment;"

ARTICLE 46. – First and second paragraphs and first sentence of sixth paragraph of article 169/a of the Code 2004 are hereby amended and shall hereafter read as follows:

"The execution court judge will summon both sides to appear before the court within no later than thirty days for investigation of the causes of objection. If it is proven by an official document or a signature-admitted or certified document that the debt does not exist or has already been redeemed or deferred, the judge will accept and honor the objection at the end of the trial. The execution court judge will give the required order or judgment even if the sides do not appear in the hearing for investigation of the objection on jurisdiction."

"If the execution court judge concludes in reliance upon the documents enclosed to the bill of exceptions of the debtor that the debt has already been redeemed or deferred, or the underlying bill of exchange is statute-barred or the debtor does not owe any debt or the execution office does not have jurisdiction in venue, the judge may order 'temporary stay of execution proceeding' until a judgment is made on the merits of the objection."

"If the bill of exceptions of the debtor is accepted and honored by the execution court for reasons pertaining to merits of the case, and if the bad faith or gross negligence of the creditor is proven, the creditor will, upon demand of the debtor, be sentenced to pay an indemnity not less than twenty-percent of the amount of claim, and if the execution proceeding is temporarily stayed and the bill of exceptions of the debtor is later refused and dismissed, the debtor will, upon demand of the creditor, be sentenced to pay an indemnity not less than forty percent of the amount of claim."

ARTICLE 47. – Third paragraph and first sentence of forth paragraph of article 170 of the Code 2004 are hereby amended and shall hereafter read as follows:

"As a result of the investigation to be conducted in accordance with forth paragraph of article 68/a, if the execution court concludes that the denied signature is not the signature of the debtor, the court will honor and accept the objection, and acceptance of the objection will stop the execution proceeding. Right of action of the creditor according to the general law provisions is, however, reserved. If the denied signature is proven to be the signature of the debtor and if the execution proceeding has been stopped and suspended upon objection according to second paragraph, the debtor will be sentenced to pay an indemnity for denial of signature in an amount not less than forty percent of the amount of claim relying upon the underlying bill of exchange, plus a fine equal to ten percent of the amount of claim, and the objection will be refused and dismissed. If the debtor applies to the court for a declaratory judgment (relief) for determination of non-existence of debt or brings forward an action of restitution, collection of the indemnity and fine will be stopped and deferred until a final court judgment is taken, and if the debtor wins the case, the previous judgment for indemnity and fine will be abated and extinguished."

"If the execution court decides to honor and accept the objection, and if the creditor's bad faith or gross negligence is proven in starting the execution proceeding for collection of the bill of exchange, the court will sentence the creditor to pay an indemnity in an amount not less than twenty percent of the amount of claim relying upon the bill of exchange, and a fine equal to ten percent of the amount of claim."

ARTICLE  48. – Article 170/b of the Code 2004 is hereby amended and shall hereafter read as follows:

"Article 170/b. – Provisions of second, third, forth and fifth paragraphs of article 61 and articles 62 to 72 will, to the extent they are do not conflict with the provisions of this section, be applicable also on the execution proceedings for attachment relying upon bills of exchange and negotiable instruments."

ARTICLE 49. – Article 179 of the Code 2004, together with its heading, is hereby amended and shall hereafter read as follows:

" Bankruptcy of Capital Companies and Cooperative Societies:

Article 179. – If and when it is declared by the management and representative bodies or if the company or the cooperative society is in liquidation, by its liquidators or a creditor, or it is determined by the competent court that the liabilities of the capital company or the cooperative society are more than its assets, the capital company or the cooperative society will be adjudged bankrupt without a prior bankruptcy proceeding. Provided, however, that any one of the management and representative bodies or the creditors may demand adjournment of adjudication of bankruptcy by filing to the court a project of recovery proving that the company or the cooperative society may be recovered. If the project of recovery is found serious and persuasive, the court will adjourn adjudication of bankruptcy. Information and documents proving that the project of recovery is serious and persuasive must also be presented to the court.

The court may, if deemed necessary, hear the management and representative bodies and the creditors. Demands for adjournment of adjudication of bankruptcy will be tried with priority and as a matter of urgency."

ARTICLE 50. – The following articles 179/a and 179/b are hereby added after article 179 of the Code 2004:

"Measures of Adjournment:

ARTICLE 179/a. – Upon adjournment of adjudication of bankruptcy, the court will take all kinds of measures required for protection of properties and assets of the company or the cooperative society by also considering the project of recovery.

In its order for adjournment of adjudication of bankruptcy, the court will decide to appoint a receiver. The court may either divest the management body of all of its powers and authorities and delegate the same to the receiver, or may only judge that all acts and decisions of the management body will be valid and enforceable only if and when they are approved by the receiver.

In the order for adjournment of adjudication of bankruptcy, the duties, functions and powers of the receiver will be shown in details.

The court will pronounce the judgment section of its order for adjournment of adjudication of bankruptcy and send the required notices and writs in accordance with the procedures defined in second paragraph of article 166."

"Effects of Order for Adjournment:

ARTICLE 179/b. – Upon an order for adjournment of adjudication of bankruptcy, no proceeding, including but not limited to the proceedings under the Code 6183, can be initiated against the debtor, and the pending proceedings will be stopped and stayed, and the limitation/prescription periods and the time limits of forfeiture which may be suspended by a legal proceeding will not continue to be counted.

During the period of adjournment, for collection of the debts secured and backed by a real property mortgage, chattel mortgage or commercial enterprise pledge, a legal proceeding for realization of mortgage or pledge may be initiated or the pending legal proceedings may be continued; provided, however, that conservatory measures such as seizure for security cannot be taken and the pledged or mortgaged property cannot be sold out. However, in this case, the interests which will continue to be accrued during the period of adjournment, but cannot be covered and paid by the existing mortgage or pledge are required to be separately securitized.

Execution proceedings for attachment can be initiated for collection of the debts listed in the first rank in article 206.

Maximum period of adjournment is one year. This period may be extended further by one year by considering the report of the receiver. The receiver will regularly file reports to the court about his activities and the situation of the company or society, in intervals to be determined by the court.

Upon dismissal of a demand for adjournment of adjudication of bankruptcy or if it is determined at the end of the period of adjournment that recovery is not possible, the court will adjudicate the company or the cooperative society bankrupt. Furthermore, at any time during the period of adjournment if the court concludes upon reports of the receiver that it is not possible to improve and recover the financial situation of the company or the cooperative society, the court may abate the order for adjournment and adjudicate the company or the cooperative society bankrupt."

ARTICLE  51. – The following sentence is hereby added to first paragraph of article 185 of the Code 2004:

"However, the pledgee creditor may in his sole discretion start a legal proceeding for realization of pledge against the bankruptcy estate (trustee) also after bankruptcy."

ARTICLE 52. – Forth paragraph of article 206 of the Code 2004 is hereby amended and shall hereafter read as follows and the following paragraph is hereby added to that article:

"Debts that are secured, but not covered by the pledge, or debts that are unsecured will be registered in the list for payment in the following order out of the proceeds of sale of the properties included in the bankruptcy estate:

First rank:

A)   Debts owed to the workers and employees arising out of the employment relation, including, but not limited to, their notice and seniority (severance) pays and accrued during one year prior to start of bankruptcy, and their notice and seniority (severance) pays accrued upon termination of employment relation due to bankruptcy; and

B)   Debts owed by employers to the societies or premises, having a separate legal personality, established for the purpose of foundation or support of the relief funds or other relief agencies or organizations for the workers and employees; and

C)   All kinds of maintenance allowances and alimonies arising out of the family law, required to be paid in cash and accrued during one year prior to start of bankruptcy.

Second rank:

All kinds of debts, arising out of guardianship or tutelage, owed to the persons whose properties are in custody and under management of the debtor due to guardianship or tutelage.

However, these debts will be considered and treated as privileged debts if the bankruptcy proceeding is started during the period of guardianship or tutelage or during the year immediately after the end thereof. The period of a lawsuit or legal proceeding will not be counted in this respect.

Third rank:

Debts defined and specified as privileged debts in the special laws pertaining thereto.

Forth rank:

All other non-privileged debts.

The following periods will not be taken into consideration in calculation of the periods relating to the first and second ranks:

1)   The concordat (composition) period lapsed prior to start of bankruptcy, also including the time granted;

2)   The period of adjournment of adjudication of bankruptcy;

3)   The period of the pending action of debt; and

4)   The period from the date of death to the date of the order of liquidation, in the case of liquidation of estate in accordance with the bankruptcy law provisions.

ARTICLE 53. – Article 222 of the Code 2004, together with its heading, is hereby amended and shall hereafter read as follows:

"Non-existence of Meeting or Decision Quorum:

Article 222. – If a meeting of creditors cannot be organized or the decision quorum is not reached therein, the situation will be noted, and in this case, the bankruptcy office will manage the bankruptcy estate and initiate the liquidation process until the second meeting of creditors."

ARTICLE 54. – Third paragraph of article 223 of the Code 2004 is hereby amended and shall hereafter read as follows:

"Meetings of bankruptcy administration will be held by a call of the bankruptcy office manager no later than seven days prior to the date of meeting upon demand of the bankruptcy commissioners or any creditor, showing also the proposed agenda of the meeting. Bankruptcy administration will take its decisions by a majority vote; provided, however, that if the meeting is not attended by all of the three bankruptcy commissioners, the bankruptcy office manager will stand and serve as bankruptcy administration and in his sole discretion will individually take decisions in the name and on behalf of the bankruptcy administration. If the meeting is attended by one or two of the bankruptcy commissioners, the bankruptcy office manager will also attend the meeting. If a decision cannot be taken, discretion and vote of the bankruptcy office manager will prevail. Creditors who apply to and are registered in the bankruptcy estate may demand notification of all decisions of the bankruptcy administration to them by designating a notice address and paying an advance for the clerical and notification expenses shown in a tariff to be adopted and issued by the Ministry of Justice.  Period for remedies against decisions of the bankruptcy commissioner (trustee) in respect of the creditors will start to count as of the date of notification of the relevant decisions to the creditors."

ARTICLE 55. – In second paragraph of article 226 of the Code 2004, the phrase "two hundred thousand" is hereby changed to and replaced by the phrase "two billion".

ARTICLE 56. – Article 239 of the Code 2004, together with its heading, is hereby amended and shall hereafter read as follows:

"Non-existence of Meeting or Decision Quorum:

Article 239. – If a meeting of creditors cannot be organized or the decision quorum is not reached therein, the situation will be noted, and in this case, the bankruptcy administration will continue the process until the liquidation process is closed."

ARTICLE 57. – Article 250 of the Code 2004 is hereby amended and shall hereafter read as follows:

"Article 250. – Distribution will be started at the end of the period of custody referred to in the preceding article. In the case of a complaint, distribution may be deferred to the extent of probable effects of decision to be taken upon that complaint on the distribution. Provisions of article 144 are also applicable. Distribution shares reserved for the debts subject to a suspensive condition (condition precedent) or an indefinite (uncertain) maturity shall be governed by the provisions of article 9."

ARTICLE 58. – First sentence of second paragraph of article 251 of the Code 2004 is hereby amended and shall hereafter read as follows and the following sentence is hereby added to the same paragraph:

"Without prejudice to the provisions of article 196, a certificate of insolvency will lead to the legal results mentioned in article 143."

"The properties on which rights are granted to a third person, but which are actually under disposition of the bankrupt, with a view to enabling the bankrupt to raise an exception of non-acquisition of new properties will be considered and treated as newly acquired properties, if the third person knows or is normally expected to know this situation."

ARTICLE 59. – Heading of article 257 of the Code 2004 is hereby revised as the "conditions of sequestration (provisional distraint), and in first paragraph thereof, the word "debt" is changed to and replaced by the words "pecuniary debt", and in sub-paragraph (2) of second paragraph, the phrase "(if the debtor) evades justice" is hereby changed to and replaced by the phrase "(if the debtor) evades justice or to this end, makes fraudulent acts and transactions inflicting on the rights of the creditor".

ARTICLE 60. – The following paragraph is hereby added as the last paragraph to article 258 of the Code 2004:

"In the case of dismissal of claim for sequestration (provisional distraint), the creditor may take legal actions and remedies."

ARTICLE 61. – The following paragraph is hereby added as the last paragraph to article 261 of the Code 2004:

"Complaints relating to execution of sequestration (provisional distraint) will be addressed to the execution court having jurisdiction on the relevant execution office."

ARTICLE  62. – Third paragraph of article 264 of the Code 2004 is hereby amended and shall hereafter read as follows:

"If the sequestration (provisional distraint) is obtained while the related action of debt is pending in the court or if the creditor has commenced a lawsuit in the court according to first paragraph hereof, the creditor is under obligation to apply for legal execution proceedings within one month after receipt from the court a writ of decree about the merits of the case."

ARTICLE 63. – Heading of article 265 of the Code 2004 is hereby revised as "Objections and Appeal to Order of Sequestration", and first paragraph  thereof is hereby amended and shall hereafter read as follows, and the following paragraphs are hereby added as second and last paragraphs:

"By an application made to the court within seven days following the date of attachment of properties in his presence or otherwise,  after receipt of the statement of attachment, the debtor may object to the causes of sequestration (provisional distraint) ordered beyond his knowledge, or to the jurisdiction of the court or to the guarantees received for sequestration."

"Third persons whose interest are injured may also object to the causes of or the guarantees received for sequestration (provisional distraint) within seven days after becoming aware of the sequestration (provisional distraint)."

"An appeal may be made against the court decree taken on objection. The Supreme Court of Appeals will hear such appeals with priority and its judgment will be final. However, appeal does not suspend or stay execution of the order of sequestration."
ARTICLE 64. – First paragraph of article 268 of the Code 2004 is hereby amended and shall hereafter read as follows:

"In the event that the properties attached and sequestered as a provisional remedy pursuant to article 261 are further attached by another creditor pursuant to and under this Code or other laws before the sequestration (provisional distraint) is converted to a final distraint, the provisional distrainee will automatically and temporarily join in this second attachment under the conditions set down in article 100. In the case of existence of a provisional or final distraint before the pledge, none of the attachments, including the public debts, may join in the distraint established before the pledge." 

ARTICLE  65. – Article 269/a of the Code 2004 is hereby amended and shall hereafter read as follows:

"Article 269/a. – If the debtor does not raise an objection, nor does he pay the rental debts by the end of the notice period, the execution court will order evacuation upon demand of the creditor within six months following the end of the notice period."

ARTICLE 66. – Heading of article 280 of the Code 2004 is hereby revised as "Revocation Due to Intention of Damage", and its first paragraph is hereby amended  and shall hereafter read as follows:

"All actions taken with the intention of damage to the creditors by a debtor whose properties and assets are not sufficient to pay his liabilities and debts may be revoked and cancelled if there are clear signs showing that the debtor's financial situation and his intention of damage are known or should be known by the other party of the said actions or transactions. Provided, however, that a legal proceeding for attachment or bankruptcy must have been initiated against the debtor within five years after the date of such actions or transactions."

ARTICLE 67. – The heading "I. SIMPLE CONCORDAT" is hereby added before the heading of article 285 of the Code 2004, and first paragraph of article 285 is hereby amended and shall hereafter read as follows, and the following paragraphs are hereby added after first paragraph, and the subsequent paragraphs are renumbered accordingly.

"Any debtor wishing to be eligible for the concordat (composition) provisions will submit to the execution court a reasoned petition and a concordat project to which a detailed balance sheet, income statement and a schedule of accounting books (if he is liable to keep books) will be appended. This schedule will indicate whether all of the books required to be kept pursuant to article 66 of the Turkish Commercial Code are duly kept or not."

"Each creditor who is entitled to submit a petition of bankruptcy may, with a  reasoned petition, request the execution court to start concordat (composition) proceedings on the debtor."

"Upon receipt of a petition of concordat, the execution court will, if deemed necessary and advisable, order the measures for protection and safeguarding of the properties of the debtor as described in second paragraph of article 290 hereof."
ARTICLE 68. – First paragraph of article 286 of the Code 2004 is hereby amended and shall hereafter read as follows, and the following paragraph is hereby added after second paragraph thereof:

"After hearing the debtor and the creditor (if the creditor has demanded so), by taking into consideration the debtor's situation, properties and revenues, and the causes of his failure in fulfillment of his obligations, and the probability of success of the concordat, and by considering whether the project is free from the intention of damage to the creditors, the execution court will accept or refuse the petition of concordat."

"The refusal of a petition of concordat by the execution court may be appealed by the debtor or the claimant creditor within ten days following the date of pronouncement thereof."

ARTICLE 69. – Article 287 of the Code 2004 is hereby amended and shall hereafter read as follows:

"Article 287. – The petition of concordat will be pronounced according to the procedures described in second paragraph of article 166. Within ten days following the date of pronouncement of the petition of concordat, the creditors may object to the petition of concordat and demand refusal of the petition of concordat by the execution court, on the ground that there is no reason justifying grant of a respite for concordat.

If the petition of concordat is found acceptable, the execution court will grant a maximum respite of three months to the debtor and will at the same time appoint one or several commissioners who are Turkish nationals having adequate knowledge and experience on concordat. If several commissioners are appointed, the execution court will further determine and decide the functions and authorities of each of the commissioners.

Concordat commissioners will be held liable for all damages caused by their own negligence or fault.

Commissioner will supervise and control the debtor's business activities and perform the duties and functions vested by article 290 et sequentis. Furthermore, upon demand of the execution court, the commissioner will issue and file interim reports and keep the creditors informed about the  concordat process.

Provisions of articles 8, 10, 11, 16, 21 and 359 will be applicable also on concordat commissioners by analogy.

If necessitated by the available circumstances, upon proposal of the commissioner, the respite for concordat may be extended by maximum two months after hearing of the creditors as well.

If and when required for protection and safeguarding of the debtor's properties or it is clearly evident that the concordat is not feasible, upon demand of the commissioner, the respite for concordat may be stopped before the end of it. In this case, the debtor and the creditors will be heard. And provisions of articles 299, 300 and 301 will be enforced by analogy.

It cannot be decided to stop or suspend the pending legal proceedings against the debtor during the period following the end of the respite for concordat, even if its purpose is an injunctive relief, or that new legal proceedings cannot be started against the debtor."

ARTICLE 70. – Article 288 of the Code 2004 is hereby amended and shall hereafter read as follows:

"Article 288. – The execution court will announce and proclaim the respite for concordat in one of the first five newspapers with the highest nationwide circulation as of the date of its decree, and will separately notify it to the relevant execution offices and land registries. The respite for concordat will be separately notified to the trade registry, if the debtor is a merchant, and to the ship registry, if the debtor is engaged in maritime commerce. If the ship owned by the debtor is registered in the ship registry, the ship registrar will put an annotation of the respite for concordat in the ship registry. This annotation creates the same legal results with the annotations referred to in article 879 of the Turkish Commercial Code. The decree of respite for concordat will separately be notified to the other relevant authorities."

ARTICLE 71. – Article 289 of the Code 2004, together with its heading, is hereby amended and shall hereafter read as follows:

"Results of the respite for concordat on the side of the creditors:

Article 289. – During the respite for concordat, no legal proceeding, including the legal proceedings by virtue of the Code 6183, can be initiated against the debtor, and the pending legal proceedings, if any, will be suspended, and orders for sequestration (provisional distraint) will not be executed and enforced, and the limitation/ prescription periods and the time limits of forfeiture which may be suspended by a legal proceeding will not continue to be counted.

During the respite for concordat, for collection of the debts secured by a real property mortgage or a chattel mortgage, legal proceedings for realization of pledge can be started or the pending legal proceedings can be continued; however, protective (conservatory) measures cannot be taken and the pledged properties cannot be sold in the course of such legal proceedings.

For collection of the debts listed in the first rank in article 206 hereof, legal proceedings for attachment can be carried out.

Unless otherwise provided in the decree of concordat, the respite for concordat will stop accrual of interest over all kinds of debts not secured by a pledge.

Clearing/settlement is subject to the provisions of articles 200 and 201 of this Code. The provisions of these articles will be enforced on the basis of the date of proclamation of the respite for concordat or the order for adjournment of adjudication of bankruptcy."
ARTICLE  72. – Article 290 of the Code 2004, together with its heading, is hereby amended and shall hereafter read as follows:

"Results of the respite for concordat on the side of the debtor:

Article 290. – The debtor may continue his business operations under supervision and control of the commissioner, providing, however, that the execution court may decide that in order to be valid, some acts and transactions must be performed and executed with participation of the commissioner, or may order the commissioner to replace the debtor for management of the business operations of the debtor's enterprise.

After the date of the order of respite for concordat, without a prior consent of the execution court, the debtor cannot establish pledges, stand surety, or transfer or otherwise encumber his real properties and the permanent equipment of his commercial enterprise even partially, or take gratuitous acts, or otherwise, all such acts and transactions will be null and void.

In the event that the debtor acts in conflict with these provisions or the warnings of the commissioner or acts in such manner justifying doubts of his good faith, the execution court may, upon a report of the commissioner and after hearing the debtor, if possible, and the creditors, if required, stop the respite for concordat or withdraw the right of disposition of the debtor on his properties.

The provisions of articles 299, 300 and 301 hereof will be enforceable by analogy."

./..
#79
PREVENTION OF LAUNDERING PROCEEDS OF CRIME LAW


Law No. 5549             
Date of Adoption   : 11/10/2006
Date of Publication: 18/10/2006

CHAPTER ONE
                                       Purpose and Definitions


Purpose
Article 1 – (1) The purpose of this law is to determine the principles and procedures for prevention of laundering proceeds of crime.

Definitions
Article 2 – (1) In this Law;
a)   Ministry means Ministry of Finance,
b)   Minister means Minister of Finance,
c)   Presidency means Presidency of Financial Crimes Investigation Board,
ç)  Coordination Board means Coordination Board for Combating Financial Crimes,
d)   Obliged Party means those who operate in the field of banking, insurance, individual pension, capital markets, money lending and other financial services, and postal service and transportation, lotteries and bets; those who deal with exchange, real estate, precious stones and metals, jewelry, all kinds of transportation vehicles, construction machines, historical artifacts, art works, antiques or intermediaries in these operations; notaries, sports clubs and those operating in other fields determined by the Council of Ministers,
e)   Examiner means Finance Inspectors, Tax Inspectors, Customs Inspectors, Revenue Comptrollers, Sworn-in Bank Auditors, Treasury Comptrollers, Banking Regulation and Supervision Agency and Capital Markets Board Experts,
f)   Proceeds of crime means proceeds derived from crime,
g)   Money laundering offence means the offence defined in article 282 of Turkish Criminal Law No 5237 dated 26/09/2004.

CHAPTER TWO
Obligations and Information Exchange

Customer identification
Article 3 – (1) The obliged parties shall identify the persons carrying out transactions and the persons on behalf or account of whom the transactions are conducted within or through obliged parties before the transactions are conducted.
(2) The Ministry has the authority to determine document types required for customer identification. The types of transactions necessitating customer identification, monetary limits of them and other related principles and procedures shall be determined by regulations.

Suspicious transaction reports
Article 4 – (1) In case that there is any information, suspicion or reasonable grounds to suspect that the asset, which is subject to the transactions carried out or attempted to be carried out within or through the obliged parties, is acquired through illegal ways or used for illegal purposes, these transactions shall be reported to the Presidency by the obliged parties.
(2) The obliged parties may not give the information to anybody including the parties of the transaction that they report the suspicious transactions to the Presidency, other than the examiners assigned to conduct inspection of obligations and the courts during legal proceedings.
(3) Activities of obliged parties required reporting and principles and procedures of reporting shall be set out by regulation.

Training, internal control and risk management systems and other measures
Article 5 – (1) In the scope of necessary measures, the Ministry has the authority to determine obliged parties and implementation principles and procedures, including measures to assign an officer with necessary authority at administrative level for ensuring compliance with this Law and to establish training, internal control and risk management systems by regarding size of business and business volumes.

Periodically Reporting
Article 6 – (1) The obliged parties shall report the transactions, to which they are parties or intermediaries, exceeding the amount determined by the Ministry to the Presidency.
(2) The transaction types subject to periodically reporting, reporting procedure and periods, excluded obliged parties and other implementation principles and procedures shall be determined by the Ministry.
(3) Regarding the implementation of this Law, periodically reporting may be requested from the public institutions and organizations, and institutions and organizations in the nature of public bodies other than the obliged parties. Those who shall report periodically and reporting principles and procedures are set out by regulations.

Providing information and documents
Article 7 – (1) When requested by Presidency or examiners, public institutions and organizations, natural and legal persons, and unincorporated organizations shall provide all kinds of information, documents and related records in every type of environment, all information and passwords necessary for fully and accurately accessing to or retrieving these records, and render necessary convenience. 
(2) Those from whom information and documents are requested in accordance with the previous paragraph may not avoid giving information and documents by alleging the provisions of special laws, providing the defense right is reserved.

Retaining and submitting
Article 8 – (1) The obliged parties shall retain the documents, books and records, identification documents kept in every kind of environment regarding their transactions and obligations established in this Law for eight years starting from the drawn up date, the last record date, the last transaction date respectively and submit them when requested.

Access system
Article 9 – (1) By the Presidency, an access system may be established to the data processing systems of the public institutions and organizations, and institutions and organizations in the nature of public bodies which keep records regarding to economic activities, wealth items, tax liabilities, census information and illegal activities in accordance with their laws or activities within the principles and procedures defined together by the Ministry and competent authorities of related Ministry and institutions and organizations in the nature of public bodies.
(2) The provisions of paragraph (1) do not apply to the banks with public capital excluding Central Bank of Republic of Turkey and public economic enterprises.

Protection of obliged parties
Article 10 – (1) Natural and legal persons fulfilling their obligations in accordance with this Law may not be subject to civil and criminal responsibilities.
(2) The information about the persons reporting suspicious transaction may not be given to the third parties, institutions and organizations other than courts even if a provision exists in special laws. Necessary measures shall be taken by Courts in order to keep secret the identities of the persons and to ensure their security.

Inspection of obligations
Article 11 – (1) Inspection of the obligations introduced by this Law and relevant legislation is carried out through Finance Inspectors, Tax Inspectors, Customs Inspectors, Revenue Comptrollers, Sworn-in Bank Auditors, Treasury Comptrollers and Capital Markets Board Experts.
(2) The Presidency may request for an inspection within an obliged party in the scope of either one case or an inspection program. The requested unit shall meet the requirement of the request. Finance Inspectors, Tax Inspectors, Customs Inspectors, Revenue Comptrollers, Sworn-in Bank Auditors, Treasury Comptrollers, Banking Regulation and Supervision Agency and Capital Markets Board Experts are designated upon the request of the Presidency by the proposal of the head of the related unit and by the approval of the Minister to whom they are attached or related.
(3) Within the scope of this Law, the examiners assigned to conduct inspection, are authorized to request all kinds of information, documents and legal books from natural and legal persons including the public institutions and organizations, and unincorporated organizations, to examine all kinds of documents and records within them and to receive information from the relevant authorities verbally or in writing. They may also use the powers given to them by other laws.
(4) Examiners shall report violations of obligations to the Presidency while fulfilling their own duties entrusted to them by their units.

International Information Exchange
Article 12 – (1) President of Financial Crimes Investigation Board is authorized to sign the memoranda of understanding, which are not in the nature of international agreement, with foreign counterparts and to amend the memoranda of understanding signed in order to ensure exchanging information within the scope of duties of the Presidency.  The signed memoranda of understanding and their amendments enter into force by the Decree of Council of Ministers.






CHAPTER THREE
Penalties, Seizure and Sending of Decisions

Administrative fine in violation of obligations
Article 13 – (1) The obliged parties violating any obligation stated in articles 3 and 6 and paragraph (1) of article 4 of this Law shall be punished with administrative fine of five thousand New Turkish Liras by the Presidency. If the obliged party is a bank, finance company, factoring company, money lender, financial leasing company, insurance and reinsurance company, pension company, capital market institution or bureau de change, administrative fine shall be applied two-fold.
(2) In case of violation of the obligations stated in article 3 and paragraph (1) of article 4 of this Law, the employee who does not fulfill the obligation shall be punished with administrative fine of two thousand New Turkish Liras as well.
(3) The obliged parties who do not fulfill the obligations stated in article 5 of this Law shall be given at least 30 days in order to remove deficiencies and to take necessary measures. If the obliged parties don't remove deficiencies and take necessary measures then the provisions of paragraph (1) shall apply to them.
(4) Administrative fine may not be imposed after five years from the date of violation of obligation.
(5) Other principles and procedures regarding this article are determined by the regulation to be issued by the Ministry.

Judicial penalty in violation of obligations
Article 14 – (1) Those who violate the obligations stated in paragraph (2) of article 4 and articles 7 and 8 of this Law shall be sentenced to imprisonment from one year to three years and to judicial fine up to five thousand days.
(2) Security measures peculiar to legal persons shall be adjudicated because of this offence.

Failure in declaring the transaction carried out on account of other person
Article 15 – (1) In the transactions requiring customer identification which are conducted within or through the obliged parties, if anyone who acts in the name of himself/herself but on account of other person does not inform the obliged parties of the person on account of whom he/she acts in writing before carrying out the transactions, he/she shall be sentenced to imprisonment from six months to one year or to judicial fine up to five thousand days.

Disclosure to Customs Administration
Article 16 – (1) Passengers who carry Turkish currency, foreign currency or instruments ensuring payment by them to or from abroad, shall disclose them fully and accurately on the request of Customs Administration.
(2) In case no explanations are made or false or misleading explanation is made upon requested by the authorities, valuables with the passenger shall be sequestrated by the Customs Administration. An administrative fine shall be imposed on the passengers who do not make explanation and who make false explanation on the amount they carry, with one tenth of the value carried, and of the difference between the value carried and disclosed respectively. Besides, the circumstance is considered as suspicious and shall be conveyed to the Presidency and other related authorities. The provisions of this paragraph do not apply to the differences up to one thousand and five hundred New Turkish Liras.

Seizure
Article 17 – (1) In cases where there is strong suspicion that the offences of money laundering and financing terror are committed, the asset values may be seized in accordance with the procedure in article 128 of Criminal Procedure Law No. 5271.
(2) Public Prosecutor may also give seizure decision in case of any delays giving rise to inconvenience. The seizure applied without the judicial decision is submitted for the approval of the judge on duty at the latest in twenty-four hours. The judge shall decide on whether it will be approved or not at the latest in twenty-four hours. The decision of Public Prosecutor's Office shall be invalid in case of non-approval.     


Sending decisions
Article 18- (1) A copy of indictment or the decision on lack of grounds for legal action at the end of investigation, adjudication in the conclusion of proceedings which are related to money laundering and financing terror offences and the seizure decision pursuant to article 17 of this Law shall be sent to the Presidency until the end of the following month by the Public Prosecutor's Offices and the courts.

CHAPTER FOUR
Presidency and Coordination Board

Duties and Powers of the Presidency
Article 19- (1) The Presidency of Financial Crimes Investigation Board is directly attached to the Minister of Finance. The duties and powers of the Presidency are as follows:

a) To develop policies and implementation strategies, to coordinate institutions and organizations, to conduct collective activities, to exchange views and information in order to prevent laundering proceeds of crime.
b) To prepare law, by-law and regulation drafts in accordance with the policies determined, to make regulations for the implementation of this Law and the decisions of Council of Ministers regarding the Law.
c) To carry out researches on the developments and trends on laundering proceeds of crime, and on the methods of detecting and preventing them.
ç) To make sectoral studies, to improve measures and to monitor the implementation on the purpose of prevention of laundering proceeds of crime.
d) To carry out activities to raise the public awareness and support.
e) To collect data, to receive suspicious transaction reports, to analyze and evaluate them in the scope of prevention of laundering proceeds of crime and terrorist financing.
f) To request for examination from law enforcement and other relevant units in their fields, when required during the evaluation period.
g) To carry out or to have carried out examinations on the subject matters of this Law.
ğ) To denounce files to the Chief Public Prosecutor's Office for the necessary legal actions according to the Criminal Procedure Law in the event of detecting serious findings at the conclusion of the examination that a money laundering offence is committed.
h) To examine the cases conveyed from Public Prosecutors and to fulfill the requests relating to the determination of money laundering offence.
ı) To convey the cases to the competent Public Prosecutor's Office in cases where serious suspicion exists that a money laundering or terrorist financing offence is committed.
i) To ensure inspection of obligations within the scope of this Law and relevant legislation.
j) To request all kinds of information and documents from public institutions and organizations, natural and legal persons, and unincorporated organizations.
k) To request temporary personnel assignment from other public institutions and organizations within the Presidency, when their knowledge and expertise is necessary.
l) To carry out international affairs, to exchange views and information for the subjects in the sphere of its duties.
m) To exchange information and documents with counterparts in foreign countries, to sign memorandum of understanding that is not in the nature of an international agreement for this purpose.

(2) The unit requested according to the sub-paragraph (f) of paragraph (1) by the Presidency shall respond to the request promptly.

(3) The Presidency fulfills its duties of examination on money laundering offence through examiners. The examiners are designated upon the request of the President by the proposal of the head of the related unit and by the approval of the Minister to whom they are attached or related.
(4) The examiners assigned upon the request of the Presidency are authorized to request information and document, to make examination, to inspect the obligations, to scrutinize all kinds of documents on the matters of the assignment.   

Coordination Board
Article 20- (1) The Coordination Board for Combating Financial Crimes is constituted in order to evaluate the draft laws on prevention of  laundering proceeds of crime and the draft regulations which will be issued by Council of Ministers, and to coordinate relevant institutions and organizations regarding implementation.
(2) The Coordination Board, under the chairmanship of Undersecretary of Ministry of Finance, consists of President of Financial Crimes Investigation Board, President of Finance Inspection Board, President of Tax Inspection Board, President of Revenue Administration, Deputy Undersecretary of Ministry of Interior, General Director of Laws of Ministry of Justice, General Director of Economic Affairs of Ministry of Foreign Affairs, President of the Board of Treasury Comptrollers, General Director of Banking and Foreign Exchange of  Undersecretariat of Treasury, General Director of Insurance of Undersecretariat of Treasury, President of Inspection Board of Undersecretariat of Customs, General Director of Customs of Undersecretariat of Customs, Vice President of Banking Regulation and Supervision Agency, Vice President of Capital Markets Board and Vice President of Central Bank.
(3) In case their opinions and knowledge are required, representatives of other institutions and organizations may be invited to the Coordination Board without the right to vote.
(4) The Coordination Board meetings are held at least twice a year.


Financial Crimes Investigation Expert and Assistant Expert
Article 21 – (1) Financial crimes investigation experts and assistant experts are employed at the Presidency. In addition to the requirements listed in article 48 of State Officials Law No: 657, the following qualifications are required in order to be appointed as Financial Crimes Investigation Assistant Expert:

a)   Being graduated from the faculties of management, economics, economics and administrative sciences, political sciences and law or higher education institutions whose equivalency is approved by the Board of Higher Education,
b)   Being successful  in the special competition and qualification exams on the subjects of the profession and foreign language,
c)   Being no more than 30 years old on the date of examination.

(2) Assistant experts are appointed as Financial Crimes Investigation Experts, providing that they have a minimum of three-year actual experience, receive an affirmative employment record each year, succeed in the proficiency exam and get at least (C) level at the Foreign Language Examination for Public Staff or a score corresponding to this level from the equivalent examinations. The ones who are not successful in proficiency exam or do not submit the foreign language proficiency document in two years following the proficiency exam shall be assigned to other cadres suitable for their positions.

(3) The reports and information received in the scope of this Law are evaluated by Financial Crimes Investigation Experts and Assistant Experts.
(4) The other duties, authority and responsibilities, and employment, promotion, working principles and methods of Financial Crimes Investigation Experts and Assistant Experts are set out by the regulation issued by the Ministry.

Disclosure of Secret
Article 22- (1) The persons stated below may not disclose secrets acquired while exercising their duties, about the personalities, transactions and account statements, businesses, enterprises, wealth and professions of the individuals and others related to them, and may not make use of those secrets for their own or third parties' benefit, even if they left their posts: 

a)   The President and the members of Coordination Board, examiners and staff of Financial Crimes Investigation Board,
b)   The persons who are consulted for their  knowledge and expertise,
c)   Other public officials who aware of the information because of their duties.

(2) These persons are sentenced to imprisonment from one year to four years in case of disclosing the secrets. The imprisonment may not be less than two years if the secrets are disclosed for material benefit.
(3) Giving information to the counterparts in the foreign countries by Presidency in accordance with this Law is not considered as disclosure of secret.





CHAPTER FIVE
Miscellaneous Provisions

Article 23- (1) The positions shown in the attached list (1) are set out for Financial Crimes Investigation Board and added to the section of Ministry of Finance of the Table (I) annexed to the Decree Law No.190 on General Cadre and Procedure dated 13/12/1983. 

Article 24- (1) –As to the Decree Law No. 178 Regarding Establishment and Functions of the Ministry of Finance dated 13/12/1983;
a) Sub-paragraph (r) of article 2 is amended to "r) to determine the procedures and principles for prevention of laundering proceeds of crime."
b) Article 14 together with its title is amended to;

"The Presidency of Financial Crimes Investigation Board"
Article 14- The Presidency of Financial Crimes Investigation Board carries out the duties specified in article 19 of the Prevention of Laundering Proceeds of Crime Law and the duties given by other laws."
c) Article 33 is amended to;
"Article 33- The Coordination Board for Combating Financial Crimes is constituted as stated in article 20 of the Prevention of Laundering Proceeds of Crime Law and carries out the duties given in the same article."

Additional payments
Article 25- (1) The president and members of Coordination Board are paid remuneration for per meeting in the amount to be calculated through multiplying the indicator number of (3000) by the salary coefficient of public officials.

(2) Additional payments not exceeding the amount calculated by multiplying the salary coefficients of public officials with the following indicator numbers are paid under the approval of the Minister to the following personnel working for the Financial Crimes Investigation Board;
a)   (7000) for the President of Financial Crimes Investigation Board,
b)   (6000) for the vice president and head of department,
c)   (10000) for the examiner assigned under this Law (not more than six months),
ç) (5000) for the Financial Crimes Investigation Expert, director and data-processing director,
d) (4000) for the Financial Crimes Investigation Assistant Expert, chief, expert, translator, engineer, statistician, IT analyst and programmer,
e) (3000) for the others.
(3) With respect to the additional payments to the temporary personnel assigned in Presidency, the indicator number specified for the cadres in the Presidency for that duty is taken into consideration.
(4) Such payments are not subject to any tax or deduction other than stamp tax.   

    Abolished and amended provisions
Article 26- (1) Articles 1, 3, 4, 5, 6, 7, 8, 9, 12, 14, sub-paragraphs (a), (b), (d), (e) of article 2 and first and third paragraphs of article 15 of Law No. 4208 dated 13/11/1996 are abolished.
(2) The first and third paragraphs of article 13 of Law No. 4208 are abolished and the second paragraph is amended to "Ankara Criminal Court of Peace is authorized to give any decision on requests of foreign countries relating to the controlled delivery of assets derived from crime."
(3) The phrases "dirty money" and "dirty money laundering offence" in other legislation refer to "proceeds derived from crime" and "money laundering offence" respectively.
   
   Regulations
Article 27- (1) The principles and procedures relating to the subjects stated in the paragraph (d) and (e) of article 2 and in articles 3, 4, 6, 7, 11, 15, 16, 19 and 20 of this Law are arranged by the regulations which will be issued by the Council of Ministers within six months following the publication date of this Law.

Increase of fixed amounts
Article 28 – (1) Fixed amounts specified in articles 13 and 16 of this Law are applied at the beginning of each year by increasing in the revaluation ratio determined for previous year under the Tax Procedure Law No. 213 dated 04/01/1961. In the calculations, the amounts up to ten New Turkish Liras are not taken into consideration.

Provisional Article 1- (1) The provisions of current secondary legislation that are not contrary to this Law shall be in effect until the arrangements stipulated in this Law come into force.

Provisional Article 2- (1) The foreign language requirement stated in the second paragraph of article 21 of this Law shall not apply to the Financial Crimes Investigation Assistant Experts who are in office on the date when this Law put into effect.

Article 29- (1) This Law enters into force on its publication date.

Article 30- (1) The Council of Ministers executes the provisions of this Law. 








LIST (1)
THE CADRES ESTABLISHED


Ministry of Finance
Central Organization




Class   Titles   CadreDegrees   Number of  Additional Cadres
GAS*   Head of Department   1   4
GAS   Director   1   3
GAS   Data-processing Director   1   1
GAS   MASAK Expert**   1   6
GAS   MASAK Expert   2   5
GAS   MASAK Expert   3   4
GAS   MASAK Expert   4   4
GAS   MASAK Expert   8   2
GAS   MASAK Assistant Expert   3   2
GAS   Chief   5   3
GAS   Chief   1   2
GAS   Translator   1   2
GAS   Statistician   5   5
GAS   Statistician   1   2
GAS   IT Analyst   4   1
GAS   Programmer   6   1
GAS   Programmer   4   1
GAS   Operator Preparing and Controlling Data   5   6
GAS   Operator Preparing and Controlling Data   8   7
      TOTAL:   61



*GAS                      : General Administrative Services
**MASAK Expert : Financial Crimes Investigation Expert
#80
ACT NO. 4077 ON CONSUMER PROTECTION
AS AMENDED BY ACT NO. 4822


Law No: 4077
Dated: 23/2/1995
Turkish official gazette date: 08/3/1995
Turkish official gazette no: 22221


PART ONE
Purpose, Scope, Definitions

Purpose
Article 1 – The purpose of this act is to take measures aimed at protecting the health, safety and economic interests of consumers in line with the public good, building consumer awareness, indemnifying losses incurred by consumers and protecting them against environmental hazards; to promote consumer initiatives aimed at protecting consumer interests and to encourage volunteer organizations aimed at devising consumer-related policies.

Scope
Article 2 – This act covers the subjects specified in Article 1 above and all consumer-related practices in goods and services markets to which a consumer is a party.

Definitions
Article 3 – In the implementation of this act;
a) Ministry means the Ministry of Industry and Trade,
b) Minister means the Minister of Industry and Trade,
c) Goods means any movable property, immovable property used for dwelling or vacation purposes, and any software, or other intangible audio or visual goods prepared for use in electronic medium, subject to purchase or sale,
d) Service means any activity, other than the supply of goods, performed for the payment of a fee or consideration,
e) Consumer means a natural or legal person who obtains, uses or benefits from goods or service for purposes outside his trade or profession,
f) Seller means any natural or legal person, including any public legal entity, who provides goods to the consumer for purposes relating to his trade or profession,
g) Supplier means any natural or legal person, including any public legal entity, who provides services to the consumer for purposes relating to his trade or profession,
h) Consumer transaction means any legal transaction concluded between a consumer and seller-supplier in the goods and services markets,
ı) Manufacturer-Producer means the manufacturer, including public legal entities, of goods or services offered to the consumer, or of the raw materials of such goods or services or semi-finished goods thereof, or any person offering such goods for sale by placing his name, trade mark or other distinctive sign on the consumer goods,
j) Importer means a real or legal person, including public legal entities, who import goods or services offered to the consumer, or the raw materials of such goods or services or semi-finished goods thereof, from abroad and offer the same for sale,
k) Creditor means any bank, special financial institution or finance house authorized under the pertaining legislation to grant credit in cash to consumers,
l) Advertiser means any natural or legal person who causes, the advertisements to be prepared in order to promote the goods or services he produces or markets, to increase the sales or create and strengthen the image, and in which advertisements the trademark of his firm's goods or services appears, to be broadcast, distributed or otherwise exhibited,
m) Advertising agency means any natural or legal person who is a commercial communication expert and prepares commercial advertisements and announcements in line with the advertiser's needs and brokers their broadcast on behalf of the advertiser,
n) Implementing institution  means any natural or legal person who is the owner, operator or lessor of communication channels or means which convey commercial advertisements and announcements to target groups,
o) Technical regulation means any mandatory regulation, including the standards put into effect by the pertinent Ministry after publication in the Official Gazette, and which regulates any one or more of the issues such as the characteristics, processing and production methods, terminology, symbols, packing, marking, labelling relating thereto and assessment of compatibility of a goods or service, including the related administrative provisions,
p) Consumer organizations mean any association, trust or their upper bodies constituted for the protection of consumer.


PART TWO
Protecting and Informing the Consumer
Defective Goods
Article 4 – A product which contains, material, legal or economic deficiencies which influence the quality, or the quantity that affects the quality, specified on the packaging, labelling, presentation or operating instructions, or in the advertisements or notices, or declared by the seller or established in the standards or technical regulations, or decrease or eliminate its value or the benefits expected from such product by the consumer with respect to fitness, shall be deemed defective.
The consumer shall notify the seller of the defect within 30 days following the date of delivery of the product. In such case, the consumer shall be entitled to rescind the contract with a refund, or demand the replacement of the good with a complete one, or a reduction of the price proportional to the defect, or free of charge repair. The seller shall perform the consumer's selection of remedy. In addition to this right of selection, the consumer shall also be entitled to claim indemnity from the manufacturer-producer, in the event that the defective good causes death and/or injury and/or harm to other goods used.
The manufacturer-producer, seller, dealer, agent, importer and creditor who grants credit in accordance with subsection five of Article 10 shall be severally liable for the defective good and the consumer's right of selection provided for in this Article. In the event that more than one person is responsible for the damages caused by the defective good, such persons shall be held severally responsible. Non-cognizance of the defect existing in the good sold shall not eliminate this responsibility.
The statute of limitations for responsibility for the defective good is two years following the delivery of good to the consumer even if the defect appears later, unless those responsible for the defect under this Article have undertaken responsibility for a longer period. The statute of limitations is five years for immovable properties used for dwelling and vacation purposes. Claims which arise from any damages caused by defective goods are subject to a statute of limitations of three years. Such claims cannot be made after the ten-year period following the day on which the good that caused the damage has been launched to the market. If, however, the defect of the good sold has been concealed from the consumer by the seller's gross fault or fraud, the statute of limitations shall not apply.
The aforementioned provisions, other than those pertaining to responsibility for damages caused by defective good, shall not apply to the goods purchased knowing that they were defective.
The manufacturer or seller shall affix a label easily legible by the consumer, bearing the word "defective" to the defective good to be offered for sale, or to its labelling. There is no obligation to affix such labelling at the places where only defective goods are sold, or a storey or department of which has been permanently allocated for the sale of defective goods, in a manner easily noticeable by the consumer. The fact that the good is defective shall be shown on the invoice, receipt or sales document given to the consumer.
Goods which are not safe cannot be supplied to the market even with the label "defective". The provisions of the Law on the Preparation and Application of Technical Legislation Relating to Products, No. 4703 shall apply to such products.
These provisions shall also apply to all consumer transactions relating to the sale of goods.

Defective Services
Article 4/A – A service which contains, material, legal or economic deficiencies that influence the quality or the quantity that affects the quality specified in the advertisements or announcements made by the supplier, or established in the standards or technical regulations, or decrease or eliminate its value or the benefits expected from such service by the consumer with respect to fitness, shall be deemed defective.
The consumer shall notify the supplier of the defect within 30 days following the date of  performance of the service. In such case, the consumer shall be entitled to rescind the contract, or demand the service to be performed again, or a reduction of the price proportional the defect. Where the rescission of the contract by the consumer is not justifiable due to the nature of the transaction, the consumer shall suffice with a reduction of the price. In addition to this right of selection, the consumer shall also be entitled to claim indemnity under the conditions laid down in Article 4. The supplier shall perform the consumer's selection of remedy.
The supplier, dealer, agent and creditor who grants credit in accordance with subsection five of Article 10 shall be severally responsible for the defective service and damages caused by such defective service and the consumer's right of selection provided for in this Article. Non-cognizance of the defect existing in the service provided shall not eliminate this responsibility.
The statute of limitations for responsibility for the claims arising from defective service is two years following the performance of service even if the defect appears later, unless warranty has been granted for a longer period. Claims which arise from any damages caused by defective services are subject to a statute of limitations of three years. If, however, the defect of the service provided has been concealed from the consumer by the supplier's gross fault or fraud the statute of limitations shall not apply.
The aforementioned provisions, other than those pertaining to the responsibility for damages caused by defective service, shall not apply to the services purchased knowing that they were defective.
These provisions shall also apply to all consumer transactions relating to the provision of services.

Obligation to Sell
Article 5 – The seller may not refuse to sell a good displayed on the shop-window, shelves or in a clearly visible place of a trading enterprise, if such good does not have a label on it bearing the words "sample" or "not for sale".
The provision of service cannot be refused unless there is a justifiable reason.
If there is no custom, commercial practice or convention to the contrary, the seller may not make the sale of a good or service conditional to a quantity, number or dimensions specified by the seller itself, or to the purchase of another good or service.
This provision shall also apply to other sales or service contracts.

Unfair Terms in Contracts
Article 6 – A contractual term which has been unilaterally included in the contract by the seller or supplier without it being negotiated with the consumer shall be regarded as unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations arising under the contract, to the detriment of the consumer.
Any unfair term included in a contract, which the consumer is a party to, shall not be binding upon the consumer.
A term shall always be regarded as not individually negotiated where it has been drafted in advance and the consumer has therefore not been able to influence the substance of the term, particularly in the context of a standard contract.
The fact that certain aspects of a term or one individual term have been negotiated shall not exclude the application of this Article to the rest of a contract if an overall assessment of the contract indicates that it is nevertheless a standard contract.
Where any seller or supplier claims that a standard term has been individually negotiated, the burden of proof in this respect shall be incumbent on him.
Consumer contracts required to be drawn up in writing under Article s 6/A, 6/B, 6/C, 7, 9, 9/A, 10, 10/A and 11/A shall be drawn up in character size 12 and in bold characters, and the lack of one or more terms in the contract shall not affect the validity of the contract, which lack shall be forthwith removed by the seller or supplier.
The Ministry shall determine the principles and guidelines for the determination of unfair terms existing in standard contracts and their deletion from the contractual text.

Installment Sales
Article 6/A – Instalment sale is a sale where the consideration for sale is paid at least in two instalments and the good or service is delivered or performed at the time the contract is concluded.
Installment sale contract shall be made in writing. The minimum terms to be included in the contract are as follows:
a) names, titles, open addresses and access information, if any, of the consumer and seller or supplier,
b) cash sale price of the good or service in Turkish Lira, inclusive of taxes,
c) total sale price in Turkish Lira, to be paid together with interest based on the maturity,
d) amount of interest, annual rate at which interest is computed, and default interest not exceeding the sum of contractual interest rate plus 30%,
e) amount of down payment,
f) payment plan,
g) legal consequences of the debtor's default.
The seller or supplier is obligated to ensure that the said information is included in the contract and hand over a copy of the contract signed between the parties, to the consumer. If a note having the effect of negotiable instrument is to be drawn up in addition to the contract, such note shall be a separate note for each instalment and made out only to the order. Otherwise the negotiable instrument shall not be valid.
In installment sales, the consumer shall be entitled to prepay the total amount of debt. Moreover, the consumer may prepay one or more instalments, provided that each payment is not less than one instalment amount. In either case, the seller is obligated to make a discount in the interest required depending on the amount prepaid.
If the seller or supplier has reserved the right to declare the rest of the debt accelerated in the event that one or more of the instalments have not been paid, such right can be exercised only if the seller or supplier has performed all its obligations and the consumer has defaulted at least on two consecutive instalments, and the sum of the unpaid instalments has to be equal to at least one tenth of the sales price. However, in order for the seller or supplier to exercise such right he has to give at least a week's notice of acceleration.
The terms of contract cannot be changed to the detriment of the consumer in any way whatsoever.
Time-share Vacations
Article 6/B – Time share contract means any contract or group of contracts concluded at least for a period of three years and during which period, the right relating to the use of one or more immovable properties for a specified or specifiable period of the year, which may not be less than one week, is established or is the subject of a transfer or an undertaking to transfer, and a copy of which contract has to be handed over to the consumer.
The Ministry shall determine the principles and guidelines relating to time-share contracts.

Package Tours
Article 6/C – Package tour contract means a pre-arranged written contract covering the combination of not fewer than two of the transport, accommodation and other tourist services not ancillary thereto sold or undertaken to be sold at an all-inclusive price and which services cover a period of more than twenty-four hours or includes overnight accommodation, and a copy of which contract has to be handed over to the consumer.
The Ministry shall determine the principles and guidelines relating to package tours.

Campaign Sales
Article 7 – Campaign sale is the sale carried out by accepting people to participate in campaigns organized though announcements made to consumers by means of newspaper, radio or television advertisements or similar means and by delivering goods or performing services at a later date.
Campaign sales can be implemented with the Ministry's permission. The Ministry shall determine which sales shall be subject to permission, amounts of down payment and instalments, delivery period, manufacturer's warranty, amount of guarantee to be paid and the principles and guidelines to be conformed to in campaign sales.
In the event that the delivery of the good or performance of the service announced or undertaken has not been effected at all or as it should have been, the seller, supplier, dealer, agent, manufacturer-producer, importer and creditor who grants credit in accordance with subsection five of Article 10 shall be severally responsible.
After the consumer decides to leave the campaign, the organizer of the campaign shall refund the total amount of money paid by the consumer until that date, on the condition that it does not exceed the date of delivery of the good or service to the consumer.
The organizer of the campaign shall give, to the consumer, a copy of the written campaign sales contract which contains, in addition to the information required in the second paragraph of Article 6/A, the "date of termination of the contract" and the "date on and manner in which the good or service will be delivered or performed".
Unless otherwise agreed in the contract, the amount of down payment shall not exceed 40% of the sales price of the goods or service.
The duration of delivery of the goods or performance of the service shall not exceed twelve months in campaign sales. This period is 30 months for dwellings and immovable properties for vacation purposes.
In the case the consumer performs all his obligations relating to payment, the delivery of the goods or performance of the service has to be implemented at the latest within one month following the end of payment.
The provisions of Section 6/A shall also apply to campaign instalment sales.

Door-to-Door Sales
Article 8 – Door-to-door sale means any sale made outside the workplace, or sales places such as exhibitions or fairs.
The Ministry shall determine the qualifications door-to-door salesmen have to possess, and door-to-door sales subject to this Law and those, which are not, as well as the principles and guidelines relating to door-to-door sales.
In this type of sale, the consumer is free to accept the good or return the same to the supplier within a period of seven days of receipt without it being necessary to provide a reason or undertake any obligation. Where a service is being sold, such period shall commence from the date on which the contract has been executed. Until such time expires, the seller or supplier may not require the consumer to make payment for the good or service subject matter of the door-to-door sales transaction, under any name whatsoever, or to issue a written document evidencing indebtedness during the period in which the right of renunciation can be exercised. The seller shall take the good back within twenty days after the notice of renunciation reaches the seller.
The consumer cannot be held liable for the wear and tear caused by the normal use of good.
In addition, Article 6/A shall apply to door-to-door instalment sales and Article 7 shall apply to door-to-door campaign sales.

Obligations of  the seller or supplier in door-to-door sales
Article 9 – In door-to-door sales contracts, in addition to the other elements required to be included in the contract, explanatory information on the quality and quantity of the good or service, the open address where the notice of renunciation can be sent, there shall be inserted the following phrase printed in bold and at least in character size 16:
We acknowledge that the consumer is entitled to refuse the goods or service within seven days following the date on which the goods had been received or the contract had been signed and rescind the contract without assuming any legal or penal responsibility or advancing any grounds for such refusal, and undertake to take the goods back after the date on which the notice of renunciation has reached the seller or supplier.
The consumer shall sign the contract in which the rights conferred to him have been inscribed and write down the date in his own hand writing. The seller or supplier is obligated to ensure that the said information is included in the contract and hand over a copy of the contract signed between the parties, to the consumer.
It is incumbent upon the seller or supplier to prove that the contract drawn up in accordance with the provisions of this Article and the goods have been delivered to the consumer. Otherwise, the consumer is not bound with the seven-day period to exercise his right of renunciation.

Distance Contracts
Article 9/A – Distance contract means any contract concluded using written, visual, telephone or electronic media or other means of communication without coming into contact with the consumer, and which provides for the delivery or supply of goods or services to the consumer at the time when the contract is concluded or thereafter.
The consumer shall be provided with, prior to the conclusion of the distance sales contract, the information the details of which shall be established under the communique issued by the Ministry. Unless the consumer confirms in writing that he has been provided with such information the contract cannot be concluded. Confirmation relating to the contracts made in the electronic medium shall also be made in the electronic medium.
The seller or supplier shall perform its obligation within thirty days following the date on which the consumer's order reaches the seller or supplier. This period can be extended for a maximum of ten days provided that the consumer has been informed in writing in advance.
It is incumbent upon the seller or supplier to prove that the delivery of intangible goods delivered or services provided to the consumer in electronic medium is without defect.
The provisions applying to door-to-door sales, excepting the provisions setting forth that the consumer may not be required to make payment for the good or service subject matter of the contract, under any name whatsoever, or to issue a written document evidencing indebtedness during the period in which the right of renunciation can be exercised, shall also apply to distance contracts.
The seller or supplier shall have to refund any sums he received, or return any negotiable instrument or written document evidencing indebtedness arising from such legal transaction within ten days following that on which he receives the notice of renunciation, and take the good back within twenty days.

Consumer Credits
Article 10 – Consumer credit means any credit received in cash by a consumer from the creditor for the purpose of obtaining a good or service. Consumer credit agreement shall be made in writing, and a copy of which contract shall be given to the consumer. The credit terms specified in the contract made cannot be changed to the detriment of the consumer during the term thereof.
The contract shall contain:
a) the amount of the consumer credit limit,
b) total amount of debt including interest and other items,
c) the annual rate of interest,
d) the repayment plan specifying the repayment dates, principal, interest, fund and other charges separately,
e) the guarantees required,
f) the rate of default interest which shall not exceed the legal interest rate plus 30%,
g) the legal consequences of the debtor's default,
h) the terms for the prepayment of loan,
ı) where the credit has been extended in a foreign currency, the terms governing the selection of the date on which the foreign exchange rate in effect shall be used to compute the amount of repayment instalments and the total amount of credit.
If the creditor has reserved the right to declare the rest of the credit accelerated in the event that one or more of the instalments have not been repaid, such right can be exercised only if the creditor has performed all its obligations and the consumer has defaulted at least on two consecutive instalments. However, in order for the creditor to exercise such right he has to give at least a week's notice of acceleration. Where a personal guarantee is given as collateral for the consumer credit, the creditor may not demand the guarantor to repay the debt without first having recourse to the principal obligor.
The consumer may prepay the total sum indebted to the creditor, as well as one or more instalments not yet due and payable. In either case, the creditor is obligated to make the deduction in interest and fees corresponding to the sum prepaid. The Ministry shall determine the principles and guidelines for the determination of the extent to which the deduction in interest and fees shall be made corresponding to the sum prepaid.
Where the creditor grants the credit on condition that a sales contract is concluded with a specified seller or supplier, or for the purchase of a specified brand of goods or services, in the case the good or service sold has not been delivered or performed in time the creditor shall be liable to the consumer severally with the seller or supplier.
The creditor is banned from linking the payments to a negotiable instrument or taking the credit under guarantee by accepting a negotiable instrument. If the creditor takes a negotiable instrument from the consumer despite such ban, the consumer shall be entitled to ask the creditor to return the negotiable instrument. Furthermore, the creditor shall be liable for any damages suffered by the consumer due to the endorsement of the negotiable instrument.

Credit Cards
Article 10/A – The provisions of section 10 hereunder shall also apply to credits converted to cash credit through the purchase of goods or services on credit card or credits used by drawing cash on credit card. However, the provisions of paragraphs (a), (b), (h) and (ı) of subsection 2, and subsection 4 of Section 10 shall not apply to such credits.
The periodic statements sent by the creditor to the consumer shall have the effect of the payment plan contemplated in paragraph (d) of subsection 2 of Section 10. In the event that the minimum amount specified in the periodic statement has not been paid when due, the consumer cannot be put under any obligation whatsoever other than the default interest set forth in paragraph (f) of Section 10.
The creditor is obligated to notify the consumer of any increase in the rate of interest thirty days in advance. The rate of interest increased by the creditor shall not apply retrospectively. The consumer shall not be affected by the increase in the interest rate if he repays the total amount of credit and terminates the use of credit at the latest within sixty days from the date of notification.
Where the goods or service is purchased on a credit card, the seller or supplier may not require the consumer to pay commission or make any additional payment under any name whatsoever.

Periodicals
Article 11 – Where a second product and/or service has been guaranteed in addition to a periodic publication through tickets, coupons, participation numbers, games, lotteries or suchlike organized by its publishers, no goods or services can be guaranteed or distributed, except the items of culture such as books, periodicals, encyclopedia, banners, flags, posters audio or visual tapes or optical disks which are not inconsistent with the purposes of periodic publication. In the case that a campaign has been organized for this purpose, the campaign period cannot exceed sixty days. The consumer cannot be asked to provide a part of the price of the good or service subject matter of the campaign.
The publisher of a periodical is obligated to announce the program of the delivery or performance dates of the good or service subject matter of the campaign, in Turkey at large, in the advertisements and announcements on the campaign, and to effect the delivery or performance of the good or service subject matter of the campaign within 30 days following the end of campaign.
The price of the periodic publication cannot be increased during the campaign period due to the increase in costs caused by the good or service to be delivered as a second product. The delivery or distribution of the good or service subject matter of campaign cannot be made in parts, nor can the integral or complementary parts of such good or service be made the subject of a separate campaign. For the purposes of this Law, transactions relating to each good or service guaranteed to be given as a second product, is considered an independent campaign.
Campaigns which have not been organized by periodic publishers but have been directly or indirectly linked to a periodic publication shall be subject to these provisions.

Subscription Agreements
Article 11/A – A consumer party to any subscription agreement may unilaterally terminate his subscription provided that he notifies the seller of his wish in writing.
The seller shall abide by the consumer's wish to terminate his subscription at the latest within seven days following the seller's receipt of written notification.
The termination of the subscription for a periodic publication shall take effect 15 days, one month and three months after the written notification reaches the seller for daily, weekly and monthly publications, respectively. The termination of the subscription of a publication of longer periodicity shall take effect after the subsequent publication following the notification.
The seller is obligated to refund the rest of the subscription fee within 15 days without making any deductions.
Price Labels
Article 12 – Labels indicating the prices, inclusive of all taxes, place of production and distinctive characteristics relating to the product, shall be affixed on the goods offered for retail or on the packages or containers thereof, in an easily visible and legible manner, and where no labelling is possible lists showing the same information shall be displayed in a visible manner.
The lists showing the tariffs and prices of services shall also be prepared and displayed as laid down in the first subsection.
Where there is a difference between the price indicated in the labelling, or price lists or tariffs and the price at the point of sale terminal, the sale shall be implemented at the price that is more beneficial to the consumer.
The goods or service the price of which is fixed by the Council of Ministers, or public corporations or institutions or professional associations having the nature of public corporation may not be sold at a higher price than the fixed price.
The Ministry shall regulate the forms, contents of labels and tariffs and the principles and guidelines relating thereto under an ordinance. The Ministry and municipalities are separately assigned to carry out the duties relating to the execution and observation of the provisions of this Article.

Warranty Certificates
Article 13 – Manufacturers or importers shall issue warranty certificates for the industrial goods they manufacture or import. The responsibility to complete and give, to the consumer, the warranty certificate bearing the date and number of the invoice issued for the good, lies with the seller, dealer or agent. The warranty period shall commence on the date of the delivery of good and last at least for two years. However, the warranty terms of certain goods can be determined by the Ministry with a different unit of measurement due to their specificity.
In the event that a good under warranty breaks down during the warranty period, the seller is obligated to get it repaired without charging any fees such as workmanship, spare part replacement cost or any charge under any name whatsoever.
Where the consumer uses his right of repair, if he cannot continually utilize the good due to frequent breakdown during the warranty period, or the maximum length of period required for its repair has been exceeded, or it has been understood that the good cannot be repaired, the consumer can exercise his other alternative rights granted under Article 4. The Seller may not refuse such request. In the event that this request of the consumer has not been fulfilled, the seller, dealer, agent, manufacturer-producer and importer shall be severally responsible.
The provisions of the second and third paragraphs does not apply to damage or defects caused by improper use of good by the consumer not in compliance with the introductory user guide.
The Ministry is obligated to determine and announce which industrial goods shall be sold under warranty certificate and the minimum amount of time required to repair the defects in these goods, after having received the opinion of the Turkish Institute of Standards.

Introductory and User Guide
Article 14 – The industrial goods produced in Turkey or imported from abroad shall be sold with a guide in the Turkish language containing information on the introduction, use, maintenance and simple repair and, if necessary, with a label containing international symbols and marks.
The Ministry is obligated to determine and announce which industrial goods shall be sold with user guide and labelling, and the minimum amount of information these shall contain, after having received the opinion of the Turkish Institute of Standards.

After-Sales Services
Article 15 – Manufacturers and importers are obligated to provide repair and maintenance services by making available adequate technical staff and spare parts inventories for the industrial goods which they sell, produce or import, during the life of such goods as determined and announced by the Ministry.
The quantity of spare parts inventories to be kept by manufacturers or importers shall be determined by the Ministry.
In the event that the importer terminates his business activities for any reason whatsoever, the new importer of such good shall provide repair and maintenance services during the life of use of the product.
The Ministry is obligated to determine and announce the goods for which service stations shall be set up, as well as the principles and guidelines governing service stations, after having received the opinion of the Turkish Institute of Standards.
In the event that an industrial good sold under warranty certificate breaks down after the warranty period expires it shall be repaired within the maximum time of repair established for such good.

Commercial Advertisement and Notices
Article 16 – It is essential that commercial advertisements and notices conform to the laws, principles adopted by the Board of Advertisement, general morality, public order, personal rights and are true and correct.
No advertisement, notices or implied advertisement deceptive or misleading the consumer, or abusing his lack of experience or knowledge, threatening the life of the consumer and safety of his property, encouraging the acts of violence or inciting to commit crime, endangering public health, or abusing the elderly, children or disabled people shall be allowed.
Advertisement comparing the goods or services offered by a competitor meeting the same needs or intended for the same purpose is allowed.
It is incumbent upon the advertiser to prove the material claims made in the commercial advertisement or announcement.
Advertisers, advertising agencies or media companies have to comply with the provisions of this Article



Board of Advertisement
Article 17 – A Board of Advertisement vested with the power to establish the principles to be complied with in commercial advertisements and notices, to monitor commercial advertisements and notices, and depending on the results of the monitoring activity, to issue precautionary suspension for the advertisements and notices inconsistent with the provisions of Article 16 for a period of three months and/or suspension and/or correction using the same method and/or pecuniary penalty decisions, shall be constituted. The resolutions of the  Board of Advertisement  shall be implemented by the Ministry.
In determining the principles to be complied with in commercial advertisements and notices, the Board of Advertisement shall take account of national conditions as well as universally accepted definitions and rules of the advertising sector.
The Board of Advertisement will be chaired by the relevant General Director assigned for duty by the Minister and shall be composed of 25 members consisting of:
a) a member assigned by the Ministry from among the relevant Deputy General Directors,
b) a member assigned by the Ministry of Justice from among the judges performing administrative duties at the Ministry of Justice,
c) a member having expertise in advertising assigned by the Turkish Radio and Television Corporation,
d) a member selected from among the university academic staff having expertise in advertising and assigned by the Higher Education Council,
e) a physician member assigned by the Central Council of the Turkish Association of Physicians,
f) an attorney at law member assigned by the Turkish Bar Association,
g) four members assigned by the Turkish Union of Chambers and Commodity Exchanges,
h) a member selected by all journalist associations in Turkey from among their members,
i) a member selected by advertising agencies associations or their higher bodies, if any,
j) a member selected by the Consumer Council from among the representatives of consumer associations who adhere to the Council or a member assigned by their higher bodies,
k) a member assigned by the Turkish Union of Chambers of Agriculture,
l) a member assigned by the Confederation of Turkish Tradesmen and Craftsmen,
m) a member from the Turkish Institute of Standards,
n) a member from the Department of Religious Affairs,
o) a member from the Turkish Union of Chambers of Engineers and Architects,
p) a member from the confederations of labour unions,
r) a member from the confederations of civil servant unions,
s) a member assigned by the Turkish Union of the Chambers of Independent Accountant Financial Advisers and Chartered Public Accountants,
t) a member selected by the Metropolitan Municipalities of Ankara, Istanbul and İzmir from among their staff,
u) a member from the Turkish Association of Pharmacists,
v) a member from the Turkish Association of Dentists.
The term of the Board members shall be three years. The members whose term ends may be reassigned or re-elected. When a seat becomes vacant for any reason whatsoever a new member shall be assigned or selected within a month in accordance with subsection three.
The Board shall convene at least once a month or at such times as required by the Chairman.
The Board shall form a quorum when more 14 members, including the Chairman, are present and resolutions shall be passed by the majority of those present at the meeting.
The Board may set up permanent or ad hoc special expertise committees where necessary. Civil servants considered by the Board to be qualified to take duty at such committees shall be assigned by the relevant public entities.
Attendance fees to be paid to Board members or the special expertise commission members who are civil servants shall be determined by the Ministry after having taking the appropriate opinion of the Ministry of Finance.
Secretarial services for the Board shall be carried out by the Ministry.
The resolutions of the Board of Advertisement shall be announced by the Chairman's office for the purpose of informing, elucidating consumers and protecting their economic interests.
The duties and formation of the Board, and the principles and guidelines governing its functioning and how the secretarial services are to be performed shall be established under an ordinance to be issued by the Ministry.

Hazardous and Dangerous Goods and Services
Article 18– Where the goods or services offered for the consumer's use may endanger or harm a person's physical or mental health or the environment, information and warning on this issue shall be added or written, in an easily visible and legible manner, on the goods or in the user's guide included, for the safe usage of such goods.
The Ministry is authorized to determine, together with pertinent ministries and other institutions, which of the goods and services shall contain explanatory information and warnings, and the form and place of such information and warnings, and announce the same.

Supervision of Goods and Services
Article 19 – Goods or services offered to the consumer have to comply with the mandatory technical regulations, including the standards put into mandatory application by the pertinent ministries after being published in the Official Gazette.
The pertinent ministries shall implement or cause to be implemented inspections in accordance with such principles. The principles and guidelines relating to the inspection of goods and services shall be separately established and announced by each pertinent ministry.
Consumer Awareness
Article 20 – The Ministry of National Education shall make the necessary additions to the curriculum of organized and extensive educational establishments to educate the consumer.
The principles and guidelines relating to the presentation of radio and television programs to educate and increase the awareness of consumers shall be established and announced by the Ministry upon the proposal of the Consumer Council.


PART THREE
Consumer Organizations
Consumer Council
Article 21 – A "Consumer Council" shall be set up under the coordination of the Ministry to search the measures necessary to deal with consumer problems, needs and interests, convey the views as to the measures to be taken to solve the problems in line with universal consumer rights, as well as the views as to the measures to be taken concerning the application of this Law, to pertinent authorities so that prompt action can be taken.
The Consumer Council shall be composed of the representatives of the Ministries of Justice, Interior, Finance, National Education, Health, Transport, Agriculture and Rural Affairs, Industry and Trade, Tourism and Environment, and State Planning Organization, Undersecretariat of Treasury, Undersecretariat of Foreign Trade, Turkish Patent Institute, State Institute of Statistics, Turkish Institute Standards, Competition Authority, Higher Board of Radio and Television, Energy Market Regulatory Authority, Telecommunication Authority, Turkish Accreditation Authority, meeting under the chairmanship of the Minister or a staff of the Ministry assigned by the Minister, National Productivity Centre, Department of Religious Affairs, greater city municipalities, Turkish Association of Municipalities, confederation of labour unions, confederation of civil servant unions, Turkish Confederation of Employers Unions, Turkish National Union of Cooperatives, Higher Education Council, Turkish Bar Association, Turkish Union of the Chambers of Independent Accountant Financial Advisers and Chartered Public Accountants, Turkish Union of Chambers of Engineers and Architects, Turkish Association of Pharmacists, Turkish Association of Dentists, Turkish Association of Veterinary Surgeons, Confederation of Turkish Tradesmen and Craftsmen, Turkish Union of Chambers and Commodity Exchanges, Turkish Association of Banks, Turkish Association of Travel Agents, Turkish Association of Hoteliers, Turkish Union of Chambers of Agriculture, Central Union of Consumer Cooperatives, Trust of Guild Research and Culture and consumer organizations.
The Ministry shall determine the numbers and characteristics of the organizations and institutions making up the Consumer Council; the minimum number of members an organization has to have in order to join the Consumer Council; and the number of representatives such organizations shall send to the Consumer Council. However, the number of public sector representatives shall under no circumstances exceed 50% of the total number of members at the Consumer Council. The Consumer Council shall convene at least once a year.
The constitution, working principles and guidelines of consumer problems panel of arbitrators and other related issues shall be regulated under an ordinance issued by the Ministry

Arbitration Committee for Consumer Problems
Article 22– The Ministry is obligated with the duty to constitute at least one arbitration committee for consumer problems at the centers of provinces and counties to resolve the disputes arising from the application of this Act.
The arbitration committee for consumer problems where the chairmanship of which shall be carried out by the Provincial Director of Industry and Trade or a civil servant assigned by him, shall be composed of a member appointed by the mayor from the municipality, a member appointed by the bar association from among its members, a member appointed by the chamber of commerce and industry and the chamber of artisans and craftsmen, and a member elected by consumer organizations, making up a total of five members, including the chairman. The member appointed by the chamber of commerce and industry, or where the two chambers have been set up separately, by the chamber of commerce and the chamber of artisans and craftsmen shall be appointed by the relevant chamber depending on whether the seller party to the dispute is a merchant or tradesman or craftsman.
The chairmanship of the arbitration committee for consumer problems in the provinces or counties where the Ministry's provincial organization does not exist, shall be held by the highest ranking administrative officer or a civil servant assigned by him. In places where there is no consumer organization, consumers shall be represented by consumption cooperatives. Where arbitration committee for consumer problems cannot be constituted, the vacant memberships shall be filled ex officio by municipal councils.
At least one rapporteur shall be assigned for arbitration committee for consumer problems to prepare the files, which shall form the basis for the panel's works and resolutions, and present a report on the dispute at issue.
Filing of the disputes with a value of less than five hundred million Turkish Liras before the arbitration committee for consumer problems is mandatory. The decision made the panel in such disputes shall be binding upon the parties. These decisions shall be enforced pursuant to the provisions of the Code of Enforcement and Bankruptcy relating to the enforcement of court decrees. The parties may appeal within 15 days against such decisions before the consumer court. The appeal shall not stop the enforcement of the decision of the arbitration committee for consumer problems. However, upon request, the judge may suspend the enforcement of the decision of the arbitration committee for consumer problems by way of precautionary judgment. The judgment entered by the consumer court on appeal from the decision of the arbitration committee for consumer problems is final.
The decision of the arbitration committee for consumer problems in disputes with a value of more than five hundred million Turkish Liras or above can be presented to the consumer court as evidentiary submission. The monetary limits determining whether a decision shall be final or considered as evidence shall be increased at the end of October each year at the average annual rate of increase in the Wholesale Price Index announced by the State Institute of Statistics. This shall be announced in the Official Gazette by the Ministry in December each year.
Any dispute other than those linked to penal sanctions laid down in Article 25, are within the jurisdiction of arbitration committee for consumer problems.
The principles and guidelines applying to the payment of attendance fees to the chairman and members and rapporteurs of arbitration committee for consumer problems shall be determined by the Ministry after having obtained the positive opinion of the Ministry of Finance on condition that the amount paid in a month does not exceed the product of 2000 indicator figure multiplied by civil servant monthly coefficient.
The constitution, working principles and guidelines of arbitration committee for consumer problems and other related issues shall be regulated under an ordinance issued by the Ministry.


PART FOUR
Provisions Regarding Legal Proceedings and Penalties
Consumer Courts
Article 23 – Any disputes in connection with the enforcement of this Law shall be heard at consumer courts. The judicial districts of consumer courts shall be determined by the Supreme Board of Judges and Public Prosecutors.

The lawsuits filed by consumers, consumer organizations or the Ministry before consumer courts shall be exempt from any duties and charges. The fees of expert witnesses in the lawsuits filed by consumer organizations shall be paid from the special fund appropriated by the Ministry under Article 29. In the event that the case has been awarded against the defendant, the fees of expert witnesses shall be collected from the defendant pursuant to the provisions of the Act Pertaining to the Procedure for the Collection of Public Receivables, No. 6183 and entered as revenue for the public purse in accordance with the principles laid down in Article 29. The cases heard at consumer courts shall be conducted in accordance with the provisions of Part Seven, Chapter Four of the Code of Civil Procedure.
The cases relating to consumer affairs can also be filed before the court at the district where the consumer is domiciled.
The Ministry or consumer organizations can file lawsuits, before consumer courts, relating to issues which are not considered individual consumer problems but are, in general, concern to consumers, in order to eliminate the situation violating this Law.
Where necessary, consumer courts can issue precautionary injunctions to terminate the violation. Precautionary injunctions deemed appropriate by consumer courts shall be announced forthwith by the Press Announcements Institution in a national newspaper printed in the country at large and, at a local newspaper at the district where the lawsuit has been filed, if any, on condition that the cost of such announcement shall be collected from the party against which the judgment has been entered, which cost shall be entered as revenue for the public purse in accordance with the principles laid down in Article 29.
Consumer court judgments ordering the elimination of the violation of the Act shall be announced in the same manner, at expense of the defendant.

Suspension of Production, Sales and Product Recalls
Article 24 – In the event that a series of goods offered for sale are defective, the Ministry, consumers or consumer organizations can file a lawsuit seeking the production and sale of the defective good to be suspended, and recalled from those who are holding such goods for sale.
In the event that a series of goods offered for sale has been found to be defective by court judgment, the sale of such product shall be temporarily suspended. A warning shall be issued to the manufacturer-producer and/or importer to remove the defect of the good at the latest within three months from the date on which the court's judgment has been served.. Where it is impossible to remove the defect, the good shall be recalled by the producer-manufacturer and/or importer. The recalled goods shall be partially or fully destroyed or caused to be destroyed depending on the risks they involve.
In the event that a series of goods offered for sale has a defect that involves risks endangering the consumer's safety, the provisions of the Act on the Preparation and Application of Technical Legislation Relating to Products, No. 4703 are reserved.
The right of the consumers who purchased defective goods to file lawsuit due to the mental or physical damages they suffered is reserved.
In the event that a series of defective goods subject to the provisions of Paragraph 6 of Article 4 has been offered for sale, the provisions of this Section shall not apply.

Goods That Appear Different Than They Are
Article 24/A – The production, marketing, importation and exportation of goods which appear different than they are because of their form, aroma, appearance, packaging, labelling, volume or size, even though they are not foodstuffs, can be mistaken for foodstuffs and therefore put the health and safety of consumers in jeopardy is forbidden.
If such goods has been launched into the market, the provisions of the Act on the Preparation and Application of Technical Legislation Relating to Products, No. 4703 shall apply.
The right of the consumers, who purchased goods which appear different than they are, to file lawsuit due to the mental or physical damages they suffered is reserved.

Penalty Provisions
Article 25 – A fine of Turkish Lira 50,000,000 shall apply pursuant to paragraph 7 of Article 6 for each contract inconsistent with the principles and guidelines adopted by the Ministry.


A fine of Turkish Lira 100,000,000 shall apply to those who act in violation of the principles and guidelines adopted by the Ministry under paragraph 7 of Article 4, Article 5, paragraph 6 of Article 6, Articles 6/A , 6/B and 6/C; and against the obligations laid down in paragraph 5 of Article 7, Article 9, Article 9/A, Article 10, Article 10/A, paragraph 2 and 4 of Article 11/A, and Article s 12, 13, 14, 15 and 27.
A fine of Turkish Lira 250,000,000 shall apply to those who act in violation of the obligations under paragraph 4 and 6 of Article 7, and Article 8.
A fine of Turkish Lira 500,000,000 shall apply to those who act in violation of the principles and guidelines adopted by the Ministry pursuant to paragraph 2 of Article 20. If the violation is caused by radios or televisions broadcasting in the country at large, ten times the fine shall apply.
A fine of Turkish Lira 1,000,000,000 shall apply to the producer-manufacturers or importers who act in violation of Article 18, and one fifth of this fine shall apply to seller-supplier.
A fine of Turkish Lira 2,000,000,000 shall apply to those who act in violation of paragraph one of Article 19.
A fine of Turkish Lira 5,000,000,000 shall apply to those who act in violation of paragraph one of Article 11. If the violation is caused by a periodic publication published in the country at large, 20 times the fine shall apply. Furthermore, the Ministry shall also demand the periodic publisher to stop the campaign as well as any advertisements and announcements relating to the campaign. If the violation continues despite this demand, a fine of Turkish Lira 100,000,000,000 shall apply for each issue-day, from the date on which the necessity of stopping the advertisements and announcements has arisen. The Ministry shall apply to a consumer court with the request of stopping the campaign and any advertisements and announcements relating to the campaign.
A penalty of up to three months precautionary suspension and/or suspension and/or correction and/or a fine of Turkish Lira 3,500,000,000 shall apply to those who act in violation of Article 16. The Board of Advertisement may issue such penalties together or separately, depending on the nature of the violation. If the violation of Article 16 is carried out through printed, audio, visual or other means publishing or broadcasting in the country at large ten times the fine shall apply.
A fine equalling the invoice price of the good or service subject matter of campaign shall apply to those who act in violation of paragraph 7 and 8 of Article 7. This fine shall not apply if the campaign organizer refunds the money when the consumer leaves the campaign.
A period of one week shall be granted to those acting in violation of paragraph 2 of Article 7 to organize a campaign consistent with the provisions of Article 7. If the violation still continues when such period expires, a fine of Turkish Lira 50,000,000,000 shall apply to those who act in violation of this provision and of the obligations laid down in Articles 24 and 24/A.
The fines specified in the foregoing paragraphs shall apply at twice the amount, if the act is repeated within a year. The fines shall be increased at the beginning of each year in accordance with Additional Article 2 of the Turkish Penal Code, No. 765.
Where fines have been prescribed in other statutes for acts described under this Act, the higher of the fines shall apply.

Authority, Objections and Statute of Limitations in Penalties
Article 26 – The penalties set forth in paragraphs 1, 4, 7, 8, 9 and 10 of Article 26 shall be executed by the Ministry, and the penalties set forth in other paragraphs shall be executed by the highest administrative officer in that location.
All fines specified in this Act are of an administrative nature. An objection may be filed with the competent administrative court regarding such fines, within seven days following the notification of the fine. Such an action shall not cease the enforcement of the penalty payment imposed by the administrative authorities and if not urgent, shall be carried out through the official documents and immediately resolved. The decisions of the administrative courts upon objection, are final
Fines imposed as per Article 25 shall be collected pursuant to the provisions of the Act Pertaining to the Procedure for the Collection of Public Receivables.
The administrative fines specified in this Act shall be subject to a prescription period of one year. Such prescription period shall commence on the date the relevant violation of this Law took place.
In the event of continuous or repeated violations, the prescription period shall commence on the date the violation has come to an end or on the date of its most recent occurrence. Initiation of legal proceedings against the decision to impose a fine shall stop the prescription period.
The organization authorized to impose the fine shall notify the professional association of the relevant party within seven days.


PART FIVE
Miscellaneous Provisions
Supervision
Article 27 – In order to implement this Act, the inspectors and controllers of the Ministry and any other personnel to be designated by the Ministry and by municipalities for this purpose shall be authorized to inspect and supervise and make researches at any place such as factories, shops, offices and warehouses where goods are stored and/or sold or where services are provided.
Officers and organizations who are authorized in matters related to this Act shall be presented true and accurate documents and information, together with the notarized originals.

Laboratory
Article 28 – The Ministry can make use of the laboratories of public and private institutions for the execution purposes of this Act, excepting the analyses of drugs, medicines, cosmetics and foodstuffs.
The tests and examinations of samples taken during the controls carried out by the Ministry may be made at the laboratories of public and private institutions. The costs of tests and examinations shall be paid out from the special appropriation set forth in Article 29. In the event that the tests and examination results have been found incompatible with the pertinent standards or technical regulations, all related costs shall be borne by the producer or importer. The costs shall be collected pursuant to the provisions of Act No. 6183 on the Procedure for the Collection of Public Receivables. The costs of tests and examinations collected shall be entered as special revenue for the public purse in accordance with the principles laid down in Article 29.

Revenues
Article 29 – The costs relating to the constitution and functioning of the Consumer Council, arbitration committee for consumer problems and Board of Advertisement, financial support to be provided to consumer organizations and their upper bodies, the Ministry's expenditure in connection with the protection of consumer and other related expenses, and any additional payment made to the personnel in the amounts determined by the Ministry of Industry and Trade after having received the Ministry of Finance's positive opinion shall be met from:
a) the appropriation earmarked in the Ministry's budget, and
b) the payments equalling one thousandth of the equity capital of newly incorporated joint stock companies or limited liability companies, and in the case of capital increase, of the amount increased.
The revenues specified in paragraph (b) shall be collected in an account opened with the Republic of Turkey's Central Bank or its correspondent T.C. Ziraat Bankası. Sixty percent of the moneys collected in such account shall be transferred to the account of the Directorate of Central Accounting Office at the Ministry of Industry and Trade, and forty percent shall be transferred to the account of the account of the Competition Authority.
The amounts transferred to the account of the Directorate of Central Accounting Office, on the one hand shall be entered as special revenue for the budget, and on the other hand, it shall be entered as special revenue by the Ministry of Finance for the existing or newly opened chapters in the budget of the Ministry of Industry and Trade.
A part of the special revenues entered in the Ministry's budget shall be used to support the projects involving the activities of the consumer organizations which have been active at least for five years and which are independent of any commercial, political and administrative institutions or their upper bodies. No payment shall be made from this account to persons working in the boards of directors or auditing committees of consumer organizations or their upper bodies under the name of attendance fee or salary. The qualifications that the consumer organizations or their upper bodies who will benefit from this account shall be regulated under an ordinance prepared by the Ministry of Industry and Trade and Ministry of Finance together.
The Ministry of Finance is authorized to transfer and enter as special revenue and special appropriation for the next year that portion unspent, during the year, of the amounts earmarked as special appropriation.



Other Provisions
Article 30 – Matters not provided for in this Act shall be subject to the general provisions of the legislation.

Regulations and Arrangements
Article 31 – The regulations specified in this Law shall be issued by the Ministry within one year following the publication hereof, in consultation with the relevant public institutions, professional associations and consumer organizations. The Ministry shall be authorized to take the necessary measures and make the necessary arrangements with regard to the implementation of this Act, subject to the pertinent legislation.

Invalidated Provisions
Article 32 – The Act Pertaining to the Obligation to Sell Without Bargaining, No. 3489; the Act on the Sale of Imported or Locally Manufactured Motor Vehicles, Engines, Machinery, Tools and Equipment with User's Guide, No. 632; the Act on the Control and Determination of the Costs and Prices of Industrial Products, No. 3003 have been repealed.

Provisional Article 1- The High Council of Jurists and Prosecutors shall determine the courts which are authorised to deal with the matters which are within the jurisdiction of the consumers courts until the constitution of the consumer courts.

#81
BANKING LAW
(As amended by the Law No. 5472)*


Law No.             : 5411                                                                   
Adoption Date          : October 19, 2005
Turkish Official Gazette  : November 1, 2005,  25983 re.


PART ONE
General Provisions

Objective 
Article 1-The objective of this law is to regulate the principles and procedures of ensuring confidence and stability in financial markets, the efficient functioning of the credit system and the protection of the rights and interests of depositors.

Scope 
Article 2- The deposit banks, participation banks, development and investment banks, the branches in Turkey of such institutions established abroad, financial holding companies, Banks Association of Turkey, Participation Banks Association of Turkey, Banking Regulation and Supervision Agency, Savings Deposit  Insurance Fund and their activities shall be subject to provisions of this law.

The provisions of this law shall also apply to banks that have been established as per their special laws, on the condition to preserve the provisions of their special laws

The general provisions shall apply to cases for which provisions are not set out in this law. 

Definitions and abbreviations
Article 3- For the implementation of this Law, the following terms shall have the meanings indicated below: 

Relevant Minister: The Prime Minister or State Minister to be authorized by the Prime Minister,

Board: Banking Regulation and Supervision Board,

Agency: Banking Regulation and Supervision Agency,

Chairman: The Chairman of the Banking Regulation and Supervision Board,

Central Bank: Central Bank of Turkish Republic Inc. Co.,

Fund: Savings Deposit Insurance Fund,

Fund Board: Savings Deposit Insurance Fund Board,

Fund Chairman: The Chairman of Savings Deposit Insurance Fund Board,

Credit institution: Deposit banks and participation banks, 

Associations of institutions: Banks Association of Turkey and Participation Banks Association of Turkey,

Bank: Deposit banks, participation banks and development and investment banks,

Deposit bank: The institutions operating primarily for the purpose of accepting deposit and granting loan in their own names and for their own accounts as per the provisions of this Law and the branches in Turkey of such institutions established abroad

Participation bank: The institutions operating primarily for the purposes of collecting fund through special current accounts and participation accounts and granting loan pursuant to this Law and the branches in Turkey of such institutions established abroad,

Development and investment bank:  The institutions operating primarily for the purposes of granting loan and/or to fulfill the duties assigned thereto by their special laws, other than accepting deposit or participation fund pursuant to this Law, and the branches in Turkey of such institutions established abroad,

Financial holding company: Institution whose all or majority of subsidiaries are credit institutions or financial institutions, provided that at least one of them is credit institution,
 
Branch: Any work place like stationary or mobile bureau, which constitutes a legally bound part of banks and which partly or entirely performs the activities of these institutions, excluding units solely composed of electronic devices,

Central branch: The branch established in Turkey by a bank established abroad, or in the case of multiple branches in Turkey, the branch notified to the Agency and to be approved by the Board,

Fund bank: The banks whose shareholder rights, excluding dividends, and management and control have been transferred to the Fund within the framework of this Law, the repealed Banking Law No. 3182 and the Banks Act No. 4389 which has been repealed by this Law and the banks whose majority shares are owned by the Fund,

Financial institution: Institutions, other than credit institutions, which have been established to perform insurance, individual private pension fund or capital market activities or to engage in minimum one of the fields of activity set out in this Law, development and investment banks and financial holding companies,   

Control: The power to appoint or remove from office the decision-taking majority of members of board of directors through direct or indirect possession of the majority of a legal person's capital irrespective of the requirement of owning minimum fifty-one per cent of its capital; or by having control over the majority of the voting right as a consequence of holding privileged shares or of agreements with other shareholders although not owning the majority of capital,

Parent undertaking: Bank or financial holding company that consolidates, under its own body, the financial tables of the undertakings under its control as well as the undertakings that are defined through the principles and procedures set by the Board.

Subsidiary: Undertakings operating under the control of a parent undertaking,
   
Qualified shares: The shares that represent, directly or indirectly, ten per cent or more of the capital or voting rights of an undertaking or that yield the privilege to appoint members to board of directors even though such rate is below ten per cent,

Dominant partner:  Natural or legal persons that directly or indirectly, individually or jointly control an undertaking,

Managers: Banks' board of directors, audit committee and credit committee chairmen and members as well as general managers, deputy general managers and officials that have a signing authority on behalf of the bank, including regional managers, branch managers and the managers of the units within the head office central organization such as departments, sections, groups, etc.   

Deposit: Money accepted by announcing to the public, verbally or in writing or in any manner, in return for or without a consideration or to be returned on a certain date of maturity or whenever it is called.

Savings deposit: The deposit accounts opened at a deposit bank, by natural persons and not subject to commercial transactions excluding check drawings exclusively,

Special current account: The accounts opened at participation banks and that consists of funds that can be partially or fully withdrawn upon request any time and for which no charge is paid to the owner of the account in return

Participation account:  Accounts constituted by funds collected by participation banks that yield the result of participation in the loss or profit to arise from their use by these institutions, that do not require the payment of a pre-determined return to their owners and that do not guarantee the payment of the principal sum.

Participation fund: The funds at special current and participation accounts opened at participation banks by natural and legal persons,

Outsourcing institution:  The institutions which provide services as the extension and complementary of main services to the institutions under the scope of this Law within the framework of the principles to be set by the Board, excluding the clearing, safe-keeping and central registry institutions which have been established by the Central Bank or which are operating under the Central Bank or which are under the supervision of the Capital Market Board.

Off-shore banking; Banking activities performed outside the borders of a given country or outside the coverage of the economic and financial legislation applied country-wide or whereby the deposits and funds from the residents of that country where it is established cannot be accepted.

Fields of activity
Article 4- Without prejudice to the provisions of other laws, banks may carry out the following activities:

a)  Accepting deposits,
b)  Accepting participation funds,
c)  Granting any sort of loan, either cash or non-cash
d) Carrying out any type of payment and collection transactions, including cash and deposit  payment and fund transfer transactions, correspondent bank transactions, or use of check accounts, 
e) Purchasing transactions of commercial bills,
f)  Safe-keeping services,
g) Issuing payment instruments such as credit cards, bank cards and travel checks, and executing relevant activities,
h) Carrying out foreign exchange transactions,  trading of money market instruments, trading of precious metals and stones and safekeeping such, 
i) Trading and intermediation of forward, future and option contracts, simple or complex financial instruments which involve multiple derivative instruments, based on economic and financial indicators, capital market instruments, goods, precious metals and foreign exchange.
j) Purchase and sale of capital market instruments and repurchasing or re-sale commitments,
k) Intermediation for issuance or public offering of capital market instruments
l) Transactions for trading previously issued capital market instruments for intermediation purposes,
m) Guarantee transactions like undertaking guarantees and other liabilities in favor of other persons,
n) Investment counseling services,
o) Portfolio operation and management
p) Primary market dealing for purchase-sales transactions within the framework of liabilities assumed by contracts signed with Treasury Undersecretariat and/or Central Bank and associations of institutions,
r) Factoring and forfeiting transactions,
s) Intermediating fund purchase-sale transactions in the inter-bank market,
t) Financial leasing services,
u) Insurance agency and individual private pension fund services,
v) Other activities to be determined by the Board.

Deposit banks shall not be engaged in activities cited in sub-paragraphs (b) and (t); participation banks shall not be engaged in activities cited in sub-paragraph (a) and development and investment banks shall not be engaged in activities cited in sub-paragraphs (a) and (b).

Indirect share ownership
Article 5- In the implementation of this Law, for the purposes of determining indirect share ownership by a real person, the shares belonging to real person, his spouse and children and the undertakings in which such persons participate with unlimited responsibility as well as the shares belonging to undertakings controlled by such individually or jointly, shall be taken into account together. For the purposes of determining indirect share ownership by legal persons, the shares belonging them as well as the shares belonging to undertakings which are controlled by such shall be taken in to account together. 

The principles and procedures applicable to the implementation of this article shall be established by the Board.   

PART TWO
Transactions Subject to Permission
SECTION ONE
Permissions for Establishment and Operation

Permission for establishment or opening branches and representative offices in Turkey   
Article 6-The establishment of a bank in Turkey or the opening up of the first branch in Turkey by a bank established abroad shall be permitted upon affirmative votes of at least five members of the Board provided that the establishment conditions laid down in this Law are fulfilled. 

The principles and procedures for permission applications and granting permissions shall be determined by a regulation to be issued by the Board. The decision regarding the permission shall be notified to the applicant within three months following the application date or after the applicant provides the missing application documents, if any. If any missing document is not provided within six months, then the application shall become invalid. 

The details regarding the establishment of a bank to be engaged exclusively in offshore banking or the opening of a branch in Turkey by such banks established abroad for such purposes, and their fields of activity and financial reporting and audit procedures as well as the details regarding the temporary suspension or revocation of their activities shall be determined by Board decision. 

The banks established abroad may open up representative offices in Turkey with the permission of the Board provided that they do not accept deposits or participation funds and those they operate within the framework of the principles to be set by the Board.

Establishment conditions
Article 7- Any bank to be established in Turkey shall fulfill the following requirements:   

a)   It should be established as a joint stock company, 
b)   Its shares should be issued against cash and to name, 
c)   The founders should meet the requirements indicated herein ,
d)   Its members of board of directors shall bear the qualifications set out in the corporate governance provisions in this Law and shall have the professional experience required for carrying out the planned activities,
e)   Its envisaged fields of activity shall be in harmony with planned financial, managerial and organizational structure, 
f)   Its paid-up capital, consisting of cash and free of all kinds of fictitious transactions, should not be less than 30 million New Turkish Liras,
g)   Its articles of association shall not be in conflict with the provisions of this law, 
h)   There should be a transparent and open partnership structure and organizational chart that will not constitute an obstacle for the efficient supervision of the institution,
i)   There should not be any element that hampers its consolidated supervision,

j)  The work plans for the envisioned fields of activity, the projections regarding the financial structure of the institution including capital adequacy, the budgetary plan for the first three years and an activity program including internal control, risk management and internal audit system showing the structural organization must be submitted.

For development and investment banks, their paid-up capital shall not be less than two- thirds of the amount provided in sub-paragraph (f) of the first paragraph.   

The principles and procedures applicable to the enforcement of this article shall be set by the Board.   

Qualifications of founders
Article 8- The founders of banks shall;

a)  Not have been declared bankrupt within the framework of the provisions of the Execution and Bankruptcy Law No. 2004, not be in possession of a certificate of bankruptcy, not have an approved application for restructuring through reconciliation or not have been issued a decision for postponement of bankruptcy,     

b) Not have qualified shares or not hold control in banks that have been subjected to Article 71 of this Law or that have been transferred to the Fund before the effectiveness of this Law,

c) Not have qualified shares or not hold control in banker subjected to liquidation, and in other financial institutions subject to liquidation, excluding voluntary liquidation, in development and investment banks whose operating permissions have been revoked, or in credit institutions whose shareholder rights except dividends and management and control have been transferred to the Fund or whose permission to conduct banking transactions and accept deposits and participation funds have been revoked, before the transfer of aforementioned credit institutions to the Fund or before their permission and authorization for accepting deposit and participation fund have been revoked.

d) Have not been sentenced to heavy imprisonment or imprisonment of more than five years pursuant to the repealed Turkish Penal Code No. 765 or other laws, even though pardoned, with the exception of negligent offenses, have not been sentenced to imprisonment of more than three years pursuant to the Turkish Penal Code No. 5237 or other laws or have not been convicted of the violation of the provisions, that require imprisonment, of the repealed Banking Law No. 3182, of the Banking Law No. 4389 which is repealed by this Law, of this Law, the Capital Market Law No. 2499 and of the legislation on lending transactions, or have not been convicted of infamous crimes such as embezzlement, extortion, bribery, theft, swindling, forgery, breach of trust, fictitious bankruptcy, smuggling offenses other than those arisen by the acts of using and consuming, fraudulent acts in official tenders and trades, money laundering or crimes committed against the prestige of the State and unveiling State secrets, offenses committed against the sovereignty of the state or the prestige of its organs, offenses committed against the security of state, offenses committed against the constitutional order or the functioning of the constitutional order, offenses committed against national defense, offenses committed against the secrets of the state and espionage, offenses committed against relations with other states as well as tax evasion or have not been engaged in such offenses under the repealed Turkish Penal Code No. 765, Turkish Penal Code No. 5237 or other laws.
e) Have necessary financial strength and respect
f) Have the honesty and competence required for the business,
g) In case of a legal person, have a transparent and open partnership structure together with the risk group.

The natural person shareholders of the legal person founders of banks with qualified shares shall meet the conditions laid down in sub-paragraphs (a), (b), (c), (d), (e) and (f) of the first paragraph of this article. 

The provisions of items (b) and (c) of the first paragraph of this Article shall not be applicable for the multi-lateral credit institutions and financial institutions that are established by international agreements to which Turkey is a party.

Requirements for the opening of a branches in Turkey by banks headquartered abroad 
Article 9- Any bank established abroad that will operate in Turkey by opening branch within the framework of the principles and procedures set by the Board should to meet the following conditions: 

a)   Its primary activities must not have been prohibited in the country where they are headquartered,
b)   The supervisory authority in the country, wherein the headquarters of the bank is located should not have negative views regarding its operation in Turkey,
c)   The paid-in capital reserved for Turkey should not be less than the amount indicated in Article 7,
d) The members of the board of managers should have adequate professional experience to be able to satisfy the requirements laid down in the corporate governance provisions and to perform the planned activities,
e) It must submit an activity program indicating work plans for the fields of activity covered by the permission, the budgetary plan for the first three years as well as its structural organization.
f) The group including the bank must have a transparent partnership structure.

An application for operating permission cannot be granted for the activities prohibited due to the violation of the local legislation in the country where such institutions are headquartered.

Operating permission
Article 10- The banks that are permitted to be established in Turkey or permitted to open up branches in Turkey within the framework of the provisions of Article 6 of this Law shall be obligated to receive permission for operation from the Board. The permission to be given upon an application to be accompanied by a declaration shall cover all activities set out in Article 4 of this Law, within the framework of the limitations set out in the last paragraph of the said article, unless otherwise decided by the Board. The permissions granted shall be issued in the Official Gazette. The decision regarding the permission shall be made within three months, the latest, following the date of application for permission.

The Agency shall give a certain period of time, which shall not be more than six months, for those who do not bear the conditions laid down in this Law and the regulations issued under this Law so that they can make the necessary arrangements and eliminate the deficiencies. Those applications not approved as a result of the review conducted upon such re-applications filed within due course shall be notified, in writing, of the result and the establishment permission that has been issued shall be revoked. The banks that have received establishment permission shall be required to meet the following criteria in order to commence their operations: 
   
a)   Their capital should have been paid in cash and must be at a level that enables the execution of planned activities, 
b)   Minimum one fourth of the system entrance fee, equivalent to ten percent of the minimum capital requirements indicated in Article 7 of this Law, should have been paid to the account of the Fund and the related document submitted to the Agency by the founders, 
c)   Their activities should be in compliance with corporate governance provisions and should have the required personnel and technical infrastructure,
d)   Their managers should bear the qualifications set out in the corporate governance provisions 
e)   The Board should comment that they bear the qualifications required for executing the activities.

The commitment in writing indicating that the remaining portion of the system entrance fee will be paid to the account of the Fund, within the framework of the payment plan prepared by the Board following the start of operation shall be submitted to the Agency. System entrance fee shall be collected for only one time. Bank shareholders shall be jointly responsible for the payment of the system entrance fee.

The Board shall be authorized to set the principles and procedures applicable to the implementation of this article.

Revocation of establishment permission 
Article 11- The establishment permission of a bank shall be revoked by the Board decision taken through the affirmative votes of minimum five Board members, in case of one or more of the following conditions:   

a)   The permission is based on non-factual declarations,
b)   Failure to apply for operating permission within nine months following the issue of establishment permission,
c)   Clearly stating the decision to waive the establishment permission,
d)   Losing the eligibility qualifications for permission until commencement of operation,
e)   Failure to get operating permission,
f)   Voluntary waiver from the whole activities listed in Article 4 of this Law, or completion of voluntary liquidation,
g)   Completion of the merger and disintegration procedures of transferred banks,
h)   Completion of liquidation or bankruptcy proceedings under Article 106 of this Law.

Revocation or restriction of operating permission
Article 12- In cases where a bank has received the operating permission on the basis of non-factual declaration or has failed to commence the activity within six months after getting the operating permission or failed to perform the activity for an uninterrupted period of six months within one year following the start of activity, the operating permission of such bank shall be revoked.  In cases where a bank has not become a member of the relevant association of institutions within one month after receiving the operating permission or has failed to pay the remaining portion of the system entrance fee to the account of the Fund and has failed to fulfill these obligations despite the warning of the Agency, such bank's fields of activity other than those covered by sub-paragraphs (a) and (b) of the first paragraph of Article 4 of this Law may be individually restricted by the Board.

Such decisions shall be notified in writing to the relevant parties and be published in the Official Gazette.

In cases where the operating permission of any bank established abroad and having branch in Turkey has been revoked, its activities have been suspended, it  has been decided to be declared bankrupt or liquidated and it has declared bankrupt in the country of establishment, the Board shall revoke the operating permission of the branches of such bank in Turkey. 

The Board's revocation of the authorization given to a credit institution under sub-paragraphs (a) and (b) of the first paragraph of Article 4 of this Law shall mean the revocation of the operating permission.

Opening domestic branches
Article 13- On the condition to comply with the principles to be determined by the Board and with the corporate governance and protective provisions set forth in this Law and providing that the Agency is notified thereof, banks may open branches within Turkey.
Cross border activities 
Article 14- Banks established in Turkey may open branches or representative offices abroad, including off-shore banking regions, on the condition to set up undertakings or participate in existing undertakings comply with the corporate governance and protective provisions set forth herein and to comply with the principles to be established by the Board;

Permission for authorization of independent audit, valuation, rating and outsourcing institutions   
Article 15- The authorization and termination of the activities, temporarily or permanently, of institutions that will perform the independent audit, valuation, rating and outsourcing activities for banks shall be decided over by the Board. The principles and procedures applicable for this shall be determined by the Board in consultation with the relevant professional associations.





SECTION TWO
Provisions Pertaining to Articles of Association

Amendments in articles of association 
Article 16- Any amendment to the articles of association of a bank shall require an approval of the Agency. A proposed amendment not approved by the Agency shall not be decided over in the general meeting of shareholders. The amendments in articles of association that have been made without the approval of the Agency shall not be registered in the Commercial Registry Gazette. The applications for permission, approval or positive opinion for amendments in the articles of association as required by this Law and other applicable legislation shall be replied within fifteen working days by the relevant authorities.

Banks shall keep their up-to-date articles of association on their websites. In case of any amendments, the articles of associations shall be updated within ten working days following the date of amendments.

Capital increases 
Article 17- The capital increased shall be paid in cash as free from any collusion and without using internal resources, excluding resources permitted to be added to capital by the related legislation. The Agency's approval shall be required for the registration of the capital increase in the Commercial Register Gazette.

Any portion of the capital, which has been determined to have been increased in breach of applicable laws, shall not be taken into consideration in calculation of own funds.

The principles and procedures applicable to capital increases under this article shall be determined by the Board.

Acquisition and transfer of shares   
Article 18- Any acquisition of shares that result in the acquisition by one person directly or indirectly of shares representing ten percent or more of the capital of a bank or if shares held directly or indirectly by one shareholder exceed ten percent, twenty percent, thirty-three percent or fifty percent of the capital as a result thereof, and assignments of shares that result in shares held by one shareholder falling below these percentages, shall require the permission of the Board.

Assignment and transfer of preferential shares with the right of promoting a member to the board of directors or audit committee or issue of new shares with privilege shall be subject to the Board's authorization irrespective of limits defined above.

For granting these permission, a transfer fee valued at one percent of the nominal value of the transferred shares of the bank shall be paid to the Fund by the transferee.   

Transactions resulting in the number of shareholders falling below five, and transferring of shares affected without permission, shall not be recorded in the book of shares. Any records made in the book of shares in breach of the foregoing provision shall be null and void. The provisions of this paragraph shall also apply to the acquisition of voting rights and establishment of usufructory rights on shares.


The shareholders with qualified shares shall be required to meet the criteria applicable to founders. The shareholders with qualified shares who do not bear the conditions required for founders any more shall not benefit from the shareholder rights other than dividends. In such cases, other shareholder rights shall be used by the Fund, upon the notification of the Agency. Such shareholders shall not use their preferential rights until the rate of their direct or indirect shares in the capital fall below ten percent.     

The transfer of shares of legal persons directly or indirectly, who own ten percent or more of the capital of a bank, under terms and conditions mentioned in the first paragraph shall be subject to the permission of the Board. The permission might be given on the condition that the person who acquires the shares bears the qualifications required for the founders.

In cases where the shares are transferred without the permission of the Board, the shareholder rights of the legal person stemming from these shares, other than dividends, shall be used by the Fund.

The Board shall determine the principles and procedures regarding the transactions to be performed in case the shares of banks whose shares are exchanged on the market are purchased from the stock exchange or in case the shares of banks are purchased from the execution office in line with the provisions of Execution and Bankruptcy Law no. 2004 as well as the principles and procedures applicable to the enforcement of this article.


SECTION THREE 
Merger, Disintegration, Changes of Shares and Voluntary Liquidation 

Merger, disintegration and change of shares 
Article 19- Board permission shall be required for a bank operating in Turkey to merge with one or several other banks or financial institutions, or to transfer all its assets and liabilities and other rights and obligations to another bank operating in Turkey, or to take over all the assets and liabilities and other rights and obligations of another bank, or to disintegrate, or to change shares. In the event that the relevant bodies of banks do not take a decision and commence procedures within three months after the date of permission, the permission shall be null and void. In mergers, disintegrations and transfers of banks to be carried out pursuant to the provisions of this Law, the provisions of Turkish Commercial Code No. 6762 and, on the condition that the sectorial share of the total assets of the banks subject to merger or integration does not exceed twenty percent, the provisions of Articles 7, 10 and 11 of the Law No. 4054 on the Protection of Competition, shall not be applied. Following the finalization of merger or transfer procedures, all assets and liabilities as well as other rights and obligations of the transferred institution shall be transferred to the overtaking bank, the legal person position of the transferred institution shall be annulled and its register shall be deleted from the Commercial Register.

The principles and procedures applicable to the implementation of the provisions of this article shall be set out in a regulation to be issued by the Agency. 

Voluntary liquidation 
Article 20- The Board's permission and the Agency's supervision shall be required for ceasing banks activities and their liquidation.

In cases where any bank operating in Turkey wants to cease and liquidate their activities, such bank shall promptly announce such case in minimum two national newspapers published and circulated in Turkey, and shall inform their depositors, the owners of participation funds, their creditors and other such persons through registered mail and shall return all the balance of their cash or in-kind deposits, participation funds, trusts and deposit accounts, and pay all their debts, without waiting for their maturity, if any, within two months. Any deposit, participation funds trusts and receivable whose owners do not apply within such period of time shall be transferred to the Agency. The Agency shall keep such values for a period of ten years, by duly announcing them at the beginning of every year, beginning from the year following the transfer. Such values for which no application has not been in demand within six months after the last date of announcement shall be registered as income by the Fund.

The principles and procedures applicable to the enforcement of the provisions of this article shall be set in a regulation to be issued by the Agency.     
 

SECTION FOUR
Rejection of Applications for Permission

Rejection of applications for permission
Article 21- The permission applications filed the Agency as per the provisions of this Law shall be rejected in case it is deemed that there are direct and indirect relations that prevent the efficient supervision of such institutions or that the conditions, qualifications, eligibility required for the activity subject to permission have been lost or could not be fulfilled during the application for permission or within the evaluation process. The decisions for rejection shall be notified to relevant applicants together with the reasons for such rejection. 


PART THREE
Corporate Governance

SECTION ONE
Management
Principles of corporate governance 
Article 22- The Board shall determine the structures and processes of corporate governance and the applicable principles, upon consulting the Capital Market Board and associations of institutions.

Board of directors 
Article 23- The board of directors of any bank shall have at least five members including the general manager. The general manager of the bank and, in his absence, his deputy shall be a natural member of the board of directors. The qualifications required for the general manager in this Law shall also be required for majority of the board of directors. Managing directors shall satisfy the same conditions as the general manager.  The persons elected as board of directors' members or the persons appointed as board of directors' members for vacated position shall be informed to the Agency, together with documents indicating that they bear the requirements laid down in this article, within seven working days. General manager and the chairman of board of directors shall not be the same person. Board of directors' members shall bear the requirements set out in sub-paragraphs (a), (b), (c) and (d) of the first paragraph of Article 8 of this Law.   

An at least three-member board of managers, including the manager of the main branch office and having the authority and responsibilities of a board of directors, shall be formed at the main branch office in Turkey of a bank established abroad and operating in Turkey through branches. For the purposes of the implementation of this Law, the three-member board of managers shall be equivalent to board of directors and the requirements set out in the first paragraph shall be required for the members of the board of managers as well.

The responsibilities of the board of directors shall include ensuring the establishment, functionality, appropriateness and adequacy of internal control, risk management and internal audit systems in conformity with the applicable legislation; securing financial reporting systems; and specification of the powers and responsibilities within the bank.

Audit committee
Article 24- Banks' board of directors shall establish audit committees for the execution of the audit and monitoring functions of board of directors. Audit committee shall consist of minimum two members. Audit committee members shall be appointed amongst the members of the board of directors who do not have executive duties. For banks operating in Turkey as branches, a member of the board of managers to whom no executive unit is attached shall be appointed to fulfill the duties of audit committee. 

Members of the audit committee shall bear the qualifications to be set by the Board. The information and documents attesting to such qualifications shall be submitted to the Agency within seven working days, at the latest, following the date of appointment.

The duties and responsibilities of the audit committee include the supervision of the efficiency and adequacy of the bank's internal control, risk management and internal audit systems, functioning of these systems and the accounting and reporting systems within the framework of this Law and the relevant legislation, and the integrity of the information produced; conducting the necessary preliminary evaluations for the selection of independent audit firms by the board of directors; regularly monitoring the activities of independent audit firms selected by the board of directors; and in case of parent undertakings covered by this Law, ensuring that the internal audit functions of the institutions that are subject to consolidated supervision are performed in a consolidated and coordinated manner, on behalf of the board of directors.

Audit committee shall be responsible for ensuring that units established within the scope of internal control, risk management and internal audit systems and the independent audit firms regularly provide reports regarding the execution of their tasks and promptly notify the board of directors of the factors that could hinder uninterrupted and reliable execution of the banks' activities or of the violations of the Law and the applicable legislation

The audit committee shall, one every six months at the maximum, report to the board of directors the results of its activities; the measures to be taken in the bank; the practices that need to be introduced; as well as other matters that it deems necessary for the sound operation of the bank.

The audit committee shall be authorized to receive documents and information from all units of the bank and the contracted outsourcing institutions and independent audit firms and to procure consulting services from expert persons, as subject to the approval of the board of directors and financing by the bank. The audit committee's duties, powers and responsibilities as well as working principles and procedures shall be set by the board of directors.       

General manager and deputy general managers
Article 25- The general manager of a bank must have at least undergraduate degrees in the disciplines of law, economics, finance, banking, business administration, public administration and related fields and those that have undergraduate degrees in engineering fields must have a graduate degree in the aforementioned fields, and they must have at least ten years of professional experience in the field of banking or business administration.   

Deputy general managers must have at least seven years of professional experience and minimum two thirds of them must have at least undergraduate degree in the disciplines listed in the first paragraph. Even if employed with different position titles, other executives whose authority and duties are comparable to a deputy general manager or who occupy higher executive positions shall be subject to the provisions of this Law pertaining to deputy general managers.

Those who are to be appointed to the position of general manager or deputy general manager, shall be required to submit documents to the Agency proving that they in fact meet the qualifications required by this article. Such persons may carry on with their positions if the Agency does not communicate any negative view within seven days following the notification.   

In case of the resignation of a general manager or deputy general manager, the reasons for such resignation shall be reported, within seven working days, to the Agency by the related person and the bank concerned.

For the implementation of this article, in respect of the qualifications to be born by general managers as well as the requirements with regard to their appointment or removal from office, the manager of the head office in Turkey of a bank established abroad shall be considered as general manager.

General managers and deputy general managers shall not take any full-time or half-time duties at commercial undertakings other than undertakings subject to consolidated audit.

Prohibition from working and signing
Article 26- The persons who do not bear the qualifications set out in sub-paragraphs (a), (b), (c), and (d) of the first paragraph of article 8 can not work at any bank as general manager, deputy general manager or in a position wherein they have  signing authority. Banks shall immediately revoke the signing authorities of these persons.

The signing authority of any bank employee, who, as a result of supervision, is found to have infringed provisions of this Lawor other applicable laws and put the bank's safe operation into danger and legal proceedings have been requested to initiated for them shall be temporarily revoked upon the Board's decision. Such persons may not be employed by any bank as an employee vested with signing authorities unless permitted by the board.

Oath and declaration of property 
Article 27- After the election or appointment of the chairman and members of the board of directors or board of managers of banks, they shall be required to take an oath in the presence of the local commercial court after their appointment or election. These persons, general managers, deputy general managers and the managers with signing authority, including regional managers, branch managers and the managers of the units within the head office such as departments, sections, groups, etc., shall be subject to the provisions of the Declaration of Personal Property and Elimination of Bribery and Embezzlement Law, no. 3628.

The Board shall set the principles and procedures applicable to oath-taking and declaration of property.

Docket 
Article 28- Resolutions adopted by the board of directors, audit committee, credit committee and board of managers shall be entered into a separate book with consecutive pages certified in accordance with provisions of the Turkish Commercial Code no. 6762 relating to keeping of books by allocating a date and number to each decision without leading to any doubt as to authenticity of the text provided that no space is left between each text and there is no addition between lines and each resolution shall be signed by members within maximum one month following the date of decision. Within the framework of the principles and procedures to be set by the Board banks may use a loose-leaf book each sheet of which shall be certified by a notary public in place of dockets, bearing consequential numbers subject to the Agency's approval provided that it is bounded at the end of each year.


SECTION TWO 
Internal Systems 

Obligations pertaining to internal systems
Article 29-The banks are obliged to establish and operate adequate and efficient internal control, risk management and internal audit systems that are in harmony with the scope and structure of their activities, that can respond to changing conditions and that cover all their branches and undertakings subject to consolidation in order to monitor and control the risks that they encounter.

The principles and procedures applicable to the establishment, functioning and adequacy of internal control, risk management and internal audit systems; the units to be established; the activities to be performed; the duties and obligations of senior management; and  the reporting to be made to the Agency shall be set by the Board.

Internal control system 
Article 30- Within the scope of internal control system, banks shall (i) ensure the execution of their activities in compliance with the legislation, internal regulations and baking ethics; (ii) secure the integrity and reliability of accounting and reporting systems and timely accessibility of information through continuous control activities to be complied with and performed by the personnel at any level; (iii) ensure the functional distribution of the duties and the sharing of powers and responsibilities the fund payments, the reconciliation of bank's transactions, protection of assets and control of liabilities; (iv) identify and evaluate any risk encountered and prepare the infrastructure required for managing such risks; and (v) establish an adequate information exchange network. Internal control activities shall be carried out by the internal control department and the internal control personnel to work under the board of directors.       

Risk management system 
Article 31- Within the scope of risk management system, banks shall establish, implement and report risk policies within the framework of the principles set by the Board. Risk management activities shall be performed by the risk management department and personnel to work under the board of directors.   

Internal audit system 
Article 32-Banks shall establish internal audit systems that involve all their units, branches and undertakings subject to consolidation. In this context, bank auditors shall investigate the conformity of the banking activities to the legislation, articles of association, internal regulations and banking principles.

Internal audit activities shall be performed in an impartial and independent manner exercising due professional care by the adequate number of auditors. Those persons charged with the internal audit of the parent undertaking banks may exercise the internal audits of undertakings subject to consolidation. The internal audit report to be prepared by the internal audit unit and the authorized inspector pursuant to the second paragraph of Article 29 of this Law shall be submitted to the board of directors by way of the audit committee in three-month periods, at minimum.


SECTION THREE 
Authorized Institutions

Independent audit firms 
Article 33- The working principles of independent audit firms to be authorized pursuant to Article 15 of this Law shall be set by the Board considering the opinion of  the Turkish Association of the Chambers of Independent Accountants Financial Advisors and Certified, Turkish Accounting Standards Authority, the Central Bank and the associations of institutions. Independent audit firms shall be responsible for damages that they may cause on third parties as a result of the activities they will perform under this Law.

If, during their audits, independent audit  firms detect any matter that may endanger the existence of the bank or an evidence demonstrating that their managers have severely violated the Law or the articles of association, the independent audit firms shall promptly notify the Agency thereof. Such notification does not mean the violation of the professional confidentiality principles and agreements or the obligations pertaining to confidentiality.   

Valuation and rating institutions 
Article 34- The valuation and rating services required by this Law and the regulations issued under this Law shall be provided by valuation and rating institutions within the framework of the principles and procedures to be set by the Board.

Outsourcing institutions 
Article 35- Banks shall present to the Agency a program they will prepare regarding the risks that could arise from the outsourcing service they receive, their management and the evaluation of the benefits and costs of the outsourcing services. Outsourcing shall not prevent the banks from fulfilling their requirements, conforming to the relevant legislation and being audited efficiently. 

The principles and procedures applicable to outsourcing institutions and types of outsourcing services that can be procured shall be set by the Board. 

Liability insurance 
Article 36- The independent audit firms, valuation firms, rating institutions and outsourcing institutions shall have liability insurance to compensate for the potential damages to be arisen by the services they provide. The principles and procedures applicable to the implementation of this article shall be set by the Board.


SECTION FOUR 
Financial Reporting 

Accounting and reporting system 
Article 37- Banks shall, in line with the principles and procedures to be established by the Board upon consulting the associations of institutions and the Turkish Accounting Standards Board taking into consideration international standards, ensure uniformity in their accounting systems; correctly record  all their transactions; and timely and correctly prepare their financial reports in a style and format that will meet the requirements of providing information, that is clear reliable and comparable and that is suitable for auditing, analysis and interpretation.

Banks shall not settle their balance sheets without ensuring reconciliation with legal and auxiliary books and records, branches and domestic and foreign correspondents.

In cases where it is determined that the financial statements have been mispresented, the Board shall be authorized to take necessary measures.

Consolidated financial reports
Article 38- A parent undertaking, shall prepare consolidated financial reports within the framework of the principles and procedures according to the article 37 in order to provide information about their financial positions and activity results as a whole. The undertakings subject to consolidation shall provide any information and document requested during the preparation of consolidated financial reports. 

Signing, submission, announcement and auditing of financial reports
Article 39- The Board-requested financial reports prepared by banks shall be signed, with names, surnames and titles indicated, by the chairman of the board of directors, the members of the audit committee, general manager, deputy general manager responsible for financial reporting as well as the relevant unit manager or equivalent authorities, declaring that the financial report is in compliance with the legislation pertaining to financial reporting and with the accounting records. The signing responsibility shall be fulfilled by the members of the board of managers of branches in Turkey of banks established abroad.

The annual financial reports to be presented by banks to their general assemblies shall be approved by independent audit firms. 

Banks shall submit to related authorities and publish their financial reports within the framework of the principles and procedures to be determined by the Board

Annual activity report 
Article 40- Banks shall prepare an annual activity report that includes information about their status, management and organization structures, human resources, activities, financial situations, assessment of the management and expectations from the future; together with financial statements, summary of board of directors' report and independent auditing report. The principles and procedures regarding preparation, submission and publication of the activity report shall be established by the Board.

Responsibility
Article 41- Pursuant to Article 37 of this Law, the board of directors shall be responsible for setting the basic policies, duties, powers and responsibilities pertaining to financial reporting system, including the accounting of activities, preparation, approval, audit, submission to relevant authorities and the publication of financial statements, for making information systems efficient and supervising its implementation. 

Record keeping 
Article 42- The original letters received and activity-related documents, or proper copies where the original ones are not available, as well as the photocopies of letters written shall be kept in order of their number and dates for a period of ten years within the body of the relevant bank. It is possible to keep such documents in the form of micro films or in electronic or magnetic environments. The principles and procedures applicable to the implementation of this article shall be determined by the Board.


PART FOUR
Protective Provisions


SECTION ONE
Own Funds and Standard Ratios

Protective regulations
Article 43- The Board is authorized to make the necessary regulations and to take any measure regarding banks in order to specify, analyze, monitor, measure and evaluate the relationship and balance between the assets, receivables, own funds, debts, liabilities, commitments of banks, revenues and expenses of banks, all other factors affecting their financial structures, and the risks encountered, by setting limitations and standard ratios as well. For a parent undertaking that have to prepare consolidated financial statements as per Article 38, this provision shall be applicable both on a consolidated and non-consolidated basis within the framework of the principles and procedures to be set by the Board. Banks shall comply with the regulations; shall calculate, comply with and maintain the limitations and standard ratios on a consolidated basis, too; and shall take and enforce the associated measures required by the Agency within due course.

Taking into consideration the implementation of corporate governance provisions and protective provisions, the Board shall be authorized to set more cautious different minimum or maximum standard ratios or limits from those set for each bank or group of banks or to change the calculation and reporting periods, or to set ratios and limits that have not been set in general terms.
   
In case the restrictions and threshold related to the standard ratios set in this Law are reached or exceeded, the relevant bank shall promptly inform the Agency thereof.


Paid-up capital, reserved funds and own funds
Article 44- The paid-up capital means. any bank's actual paid-up capital or paid-up capital set aside for Turkey free of any collusion less its loss disclosed in the balance sheet not met from reserves.

Reserves means any reserve set aside by banks in accordance with provisions of the Turkish Commercial Code no. 6762 and other relevant acts and articles of association thereof less any balance sheet loss, if any.

The own funds shall be calculated by subtracting the deductible values from the total of core capital and supplementary capital.

For the calculation of credit limits and standard ratios to be applied on a consolidated basis, consolidated own funds shall be calculated pursuant to the third paragraph of this article.

The principles and procedures related to this article shall be set by the Board.

Capital adequacy
Article 45- Capital adequacy means keeping adequate own funds against losses that could arise from the risks encountered, in the implementation of this Law. Banks shall be obliged to calculate, achieve, perpetuate and report capital adequacy ratio, which shall not be less than eight percent, within the framework of the regulation to be issued by the Agency.

The Board shall be authorized to increase the minimum capital adequacy ratio, to set different ratios for each bank and to revise the risk weights of assets that are based on participation accounts, taking into consideration the banks' internal systems as well as their asset and financial structures.

Adequacy of liquidity
Article 46- Banks shall calculate, achieve, perpetuate and report the minimum liquidity level in accordance with the principles and procedures to be set by the Board upon the approval of the Central Bank.   

Elimination of excesses 
Article 47- The excesses of limitations and ratios set forth in this Law and in the regulations issued under this Law shall be eliminated within the framework of the principles and procedures to be determined by the Board.

In cases where excesses occur in the limitations and standard ratios associated with a certain rate of the own funds due to possible decreases in the own funds and in cases where conditions so require, such excesses shall be eliminated within the period to be given by the Agency. Within the period set for the elimination of excesses, the provisions of this Law pertaining to administrative fines shall not be applicable.


SECTION TWO 
Loans and Risk Group 
Loans 
Article 48- The cash loans and non-cash loans such as letters of guarantee, counter-guarantees, suretyships, avals, endorsements, acceptance loans and commitments bearing such characteristics, bonds and similar capital market instruments that have been purchased, funds lent through making a  deposit or other ways, receivables arising from the installment sales of assets; overdue cash loans, accrued but non-collected interests, values of non-cash loans that have been converted to cash, receivables incurred from reverse repurchasing transactions, risks undertaken within the scope of futures and option contracts and other similar contracts, partnership shares and transactions recognized as loan by the Agency shall be considered as loans in the implementation of this Law, irrespective of the accounts they are booked. 

For the implementation of this Law, in addition to those mentioned in the first paragraph, loans shall also include the finance provided through the financial leasing method by development and investment banks the payment of all movable and immovable property and services fees of participation banks or  the profit and loss sharing investments, immovable, equipment or property procurement or financial leasing or joint investments by financing documents in return for property, and similar methods. 

Risk group
Article 49- A real person and his spouse and children, the undertakings where they are members of board of directors or general manager or the undertakings which they or a legal person control individually or jointly, directly or indirectly or participate with unlimited responsibility, constitute a risk group.

A bank and its qualified shareholders, board of directors' members and general manager as well as the undertakings they control individually or jointly, directly or indirectly or participate with unlimited responsibility or where they are members of board of directors or general manager constitute a risk group including the bank.

In the identification of the above-mentioned risk groups, jointly-controlled undertakings shall be included in the risk group of each shareholder that controls together these undertakings. 

For the implementation of this article, risk groups shall also include real and legal persons that have surety, guarantee or similar relationships where the insolvency of one will lead to the insolvency of the other.

The banks whose majority of capital is owned separately or jointly by the Treasury Undersecretariat, Privatization Administration or the administrations subject to the general budget or annexed budget shall constitute a risk group together with the undertakings that they directly or indirectly control. 

The non-bank state economic enterprises or other public institutions and enterprises whose majority shares are owned by the Privatization Administration shall constitute a risk group together with the subsidiaries, associates and enterprises in which they are determining in terms of capital, management and supervision.

The Board shall set the principles and procedures of  implementation of this article and principles and procedures to be applicable to the identification of the real and legal  persons to be included in the same risk group, in the context of the board of directors' member and general manager of banks and their undertakings as well as their children who are not under their custody.

Conditions of granting loans to the risk groups including the bank and its employees
Article 50- Banks shall under no condition and in no way grant cash or non-cash loans, and purchase bonds or similar securities of;

a) their board of directors' members, general manager, deputy general managers and employees that are authorized to extend loans; their spouses and children under their custody; and the undertakings where they individually or jointly own twenty-five percent or more of the capital,
b) Their employees other than those mentioned in sub-paragraph (a) and their spouses and children under their guardianship,
c) The funds, associations, unions or foundations established by or for their employees.

The provisions of the first paragraph shall not be applicable for real and legal person shareholders who are original members of the board of directors or have representative in the board of directors and directly or indirectly own qualified shares in the bank's capital.

The fact that the persons in the board of directors and audit boards of the undertakings of a bank are at the same time the employees of the relevant bank shall not constitute an obstacle for the undertakings to make transactions with that bank.

It is obliged that in cases where loans will be made available to real and legal persons in the bank's risk group, the necessary decision be taken by two thirds majority of the board of directors' members and that the loan conditions not vary from the loans made available to other persons and groups and from market conditions, in favor of the borrower.

The provisions of paragraphs one and four shall not apply to the loans to be made available to the board of directors' members and employees of bank as well as their spouses and children under their custody not exceeding the five times of the monthly net total remunerations of them ;  to be extended through issuing check books and credit cards up to three times the monthly net total remunerations of the member and to be extended in return for the securities mentioned in sub-paragraphs (a) and (b) of Article 55 of this Law.

Banks shall regularly report to the Agency the loans extended to persons who are in their risk groups.

It is obligatory to liquidate the loans that turn out to be in violation of this article later on, within six months at the latest.

./..
#82
SOCIAL INSURANCE ACT

Law nr.506
Date: 17/7/1964
Turkish official gazette : Date : 1/8/1964 No:11766-11779


CHAPTER I

GENERAL PROVISIONS
 


Objective of the Act
Article 1- 
Social insurance benefits shall be provided, subject to the conditions prescribed by this Act, in cases of work accidents, occupational diseases, sickness, maternity, invalidity, old-age and death.
 
In this Act "the Institution" shall mean the "Social Insurance Institution".
   

Insured Persons
Article 2- 
(Amended: 11/5/1976-1992/ Art 1.)
Worker who have been employment by one or more employers based on to a contract of services, are mean as "insured person" in according to this Law.
 
The Protection security guards whom are employment based on Law No: 4081 dated of 10.7.1941 on Farmer's Property Protection.

(Law Draft 01.01.2004 dated 29.07.2003, appended to article 25 of Law No. 4958) For the convicted and detainees employed at establishments, ateliers and similar units within Punishment execution institutions and prisons, only insurance types of occupational diseases and work accident, maternity and sickness are applying. However, in case of their demand, they can be voluntary insured on conditions that, they must carry out to provisions ,n Article 85 of the this Law from the point of view of the invalidity, old age and survivor's of insurance branches. Employer of these employees is Punishment Execution Institutions and Prison Employment Institution and employer representatives are responsible directors and supervisors of Punishment Execution Institution and Prison Employment Institutions.
 
Insured persons and their spouses and children, and after the death of the insured persons their survivors specified in the Act, shall be entitled to the social insurance benefits referred to this Act. (See to Supp.Art.10, 13 and 40, and Tarns.Art.41)
 

Uninsured Persons   
Article 3-
I- The below-mentioned people not to be named insured due to this Law:    
A. (Amended: 24/10/1983-2934/Art.1) Working in agricultural business, excluding to following business :( see to Supp.Art.9)

a) Salaried workers in business of agricultural and forest of public sectors;
   
b) Salaried and permanently workers in the business of agricultural and forest of private sectors;
   
   c)   In the business of agricultural crafts;

d)   In the business which are carrying out in agricultural workplace but not to be named business of agricultural;
   
e)   In the business of park, garden, nursery and similar areas of the workplace that is not named agricultural workplaces;
 
B)    The spouse of the employer who is working without a wage;

C)    Relatives (up to and including the third degree of kin), living and working in the same dwelling and engaged in an occupation, on which no outsider is employed;

D)    (Amended: 11/8/1977-2100/Art.1) Persons employed in domestic service (excluding those working permanently on wages);

E)    Persons performing their compulsory military service (excluding those working subject to the provisions of Act No: 33, dated 27 February 1962);

F)    Persons paying dues to retirement funds established by law;

G)    Foreign nationals who are sent to Turkey for work to be done on behalf, and for the account, of an undertaking having its principal place of business abroad and who claim that -they are insured abroad;

H)   Students engaged in vocational training, in manufacturing and production works, in official schools established for arts and crafts training or in those established for similar purposes with the permission of the appropriate authorities;

(I) (Repealed by the 57th article of Law No. 4958 and dated 29.07.2003)

J) Sick or disabled persons who are undergoing a course of occupational rehabilitation in health establishments;

K)    Persons working on their own behalf and account, without being employed under a contract of service;

L) (Combined with 29/04/1986 - Art.3279/1, and repealed by the 57th article of Law No. 4958 and on 29.07.2003.)
 
 
II- Some insurance branches not provide for below-mentioned:
A) (Repealed by the 57th article of Law No. 4958 and dated 29.07.2003) 

B)  Apprentices as defined in the special legislation shall not be covered for maternity, invalidity, old-age and survivors' insurance and shall not be subject   to provisions of Article 35 of this Act, during the period of apprenticeship;

C) (Amended: 29/4/1986-3279/Art.1) Social Security Supporting Contributions shall be deducted, in accordance with the provision laid down in Article 63, from the earnings of the persons who are employed in an occupation under the present Act, while drawing invalidity or old-age pensions from the social security institutions established by law, over their earnings, taken as a basis for the calculation of the contribution determined in compliance with Article 78.

The Social Security Supporting Contribution periods completed shall not be treated as insurance periods completed under this Act, and the provisions of Act 2829 dated 24.5.1983, pertaining to the aggregation of employment periods completed under the Social Security institutions shall not apply. No lump-sum payments may be made in pursuance to the provision laid down in Article 64; however, the .provisions of Article 12 shall apply in cases of work accidents or occupational diseases.
 
In cases where any person out of those covered above, to whom occupational invalidity pension has been awarded place a request, in writing, to the Institution, invalidity, old-age and survivors' insurance schemes shall apply to such persons, as from the beginning of the month following the date of the application.
 
D) (Supplement with 20/06/1987 – Art.3395/1, and repealed by the 57th article of Law No. 4958 and dated 29.07.2003)

 
Definition of Employer and Proxy of Employer
Article 4-
(Amended: 11/5/1976-1992/Art.1)
For the purpose of this Act, the term "employer" shall mean any real or juridical person employing one or more insured person or persons as defined in Article 2. The term "Proxy of employer" shall mean any person managing the business on behalf and for the account of an employer.
 
The term employer, for the purposes of this Act, shall be used to mean also the proxy of employer.

(Amended:14/5/1985-3203/Art.1) An employer's representative shall be responsible to the same extent as the employer for the liabilities of the employer as specified in this Act.
 
The liabilities of the employer referred to in this Act as regards guards watching the properties of farmers shall be the liability of the body responsible for their appointment.
 

Definition of Workplace
Article 5-
For the purpose of this Act, a "workplace" is a place where any insured person as defined in Article 2 is performing his work.
 
In the performance of the work, annexes such as recreation rooms, nurseries, dining rooms, dormitories, rest rooms, infirmaries, physical and training facilities, yards, offices and vehicles shall also be considered as workplaces.
 
 
Commencing Date of Insurance, and Reason of Compulsion   
Article 6-
Employed persons shall automatically become insured as soon as they enter employment.

The rights and obligations of insured persons and of their employers shall be effective as from the date on which the insured person enters employment.
 
The rights and obligations attained through becoming insured by this way shall be unavoidable and it should not be renounce ably.
 
Provisions in relation to reduce or transfer to another people of benefits and obligations of the social insurance shall not be put in Conventions.


Post to Foreign Countries by Employers
Article 7-
The rights and obligations of the insured persons as provided for in this Act shall continue as long as they perform the work when they are post abroad by their employer on temporary duty. (See to Transitional Article 86.)
 
 
Notification of Workplace
Article 8-
The employer shall be responsible for delivering or forwarding by registered mail a notification a specimen (E.D.: 06.08.2003 changed with 26th Article of Law No. 4958 dated 29.07.2003) of which to be prescribed by the Institution to the appropriate office of the Institution on the latest date when he starts employing an insured.
   
A certificate acknowledging the receipt of the notification shall be delivered, or sent by the Institution to the employer by registered mail.
 
The fact that the notification has not been delivered at all or in due time shall not effect the rights and obligations provided for under this Act.
 
If a business or undertaking, employing insured persons, is transferred to or passed on to another employer, the new employer shall be responsible for submitting the necessary notification. The rights and obligations of the insured persons employed in the said business shall continue as before. '

(Supplement: 26th Article of Law No.4958 dated of 25.8.1999. E.D.06.08.2003 )  In case of workplace transfer via inheritance, new employer is responsible for supplying the Institution with workplace declaration or posting it to the institution as reply mail in 3 months at the latest.


Notification of Employed Insured:
Article 9-
(Amended: by Law No.4447/ Art.12, dated 25.08.1999. E.D. 08.09.1999)
The employer shall notify the Institution about the persons he will employ, directly by submitting a notification of employment a specimen of which to be prescribed by the Institution or by forwarding such a notification by registered mail before the date on which the persons start to work. For the persons to be employed at the construction the notification of employment submitted to the Institution directly or forwarded by registered mail on the date on which they start to work and for the persons employed in the workplaces for which the notification of workplace has been submitted to the Institution for the first time, the notifications of employment submitted directly to the Institution or forwarded by registered mail within one month after they start to work shall be regarded as given within the time limit.

Type of Ex-Paragraph: The employer is obliged to declare the insured employees to the Institution at the latest in a month via reports prepared by the Institution.

Published on Official Gazette dated18.07.1999 and numbered 23759 (Original) and has been put into force on Publish date. Law No. 4410. Adoption date: 14.7.1999


Procedures on Non-Notified of Employed People
Article 10-
Insurance benefits in the case of work accident, occupational disease, sickness and maternity which have occurred prior to the date of delayed filing of notification or before the date on which the Institution has independently learned that the insured person was employed in the workplace, shall be provided by the Institution even when the notice has not been given in due time.
 
Insurance benefits in cases of work accident, occupational disease, sickness and maternity shall also be provided by the Institution for the insured persons who have been newly employed but whose employment has not been notified to the Institution within the prescribed time although the employer has notified the Institution of the existence of the workplace or the Institution itself found out that there existed such a workplace in which insured persons were employed.

However, all expenses of any kind incurred or subsequently to be incurred by the Institution in connection with the insurance incidents specified in the preceding paragraphs and, if a pension has been awarded, its capital value calculated on the basis of a tariff referred to in Article 22, shall be reclaimed from the employer without giving consideration to the state of responsibility referred to in Article 26.




CHAPTER II

INSURANCE AGAINST WORK ACCIDENTS
AND OCCUPATIONAL DISEASES


Definition of Work accident and Occupational Diseases
Article 11-
A) An work accident means an accident occurring in any one of the circumstances or situations indicated below which causes immediately or subsequently a physical or mental invalidity to an insured person:
   
   a)    When the insured person is in the workplace;
   
   b)    In connection with the work carried on by the employer,
   
c)   When the insured person has been sent by the employer to                 
       perform duties at another place;
   
d)   During the period allocated for the nursing of the child of the
       insured woman;
   
e)   While insured persons are carried as a group on a vehicle
       supplied by the employer, to and from the place where the
       work is being done.
 
B) Occupational disease is a case of sickness, invalidity or mental trouble, temporary or permanent, suffered by an insured person due to continuing causal factor, which is characteristic of the nature of the work he is doing, or arising out of conditions required for the execution of such work.
 
Disputes arising as to whether any sickness not included in the list of diseases drawn up in accordance with the provisions of this Act, is to be considered as an occupational disease or not shall be settled by the Social Insurance Supreme Health Board.
 

Providing Benefits 
Article 12-
The following benefits shall be provided in cases of work accidents and occupational diseases:
 
A)    Provide to health benefits;

B)    Daily cash benefits payable during temporary incapacity for work;

C)    Payment of pension in the case of permanent incapacity for work;

D)    Supply, fitting, repair and replacement of prosthesis tolls and materials;

E)    Send another place to insured person for the purpose of obtaining benefits indicated in paragraphs (A) and (D);

F)    payment of the round trip travelling expenses as well as the residential and medical expenses of the insured person who is suffering from a physical or mental invalidity, following an work accident or an occupational disease, the treatment of which is not possible in the national territory, but a partial or total cure can only be possible in a foreign country, according to the report issued by the medical boards of the health establishments owned and administered by the Institution to the effect that the degree of incapacity for work could be reduced, and also payment of the round trip travelling and residential expenses of any person accompanying him, if it is mentioned in the medical report; (if the Institution or the insured person appeals against the medical report, the matter shall be settled by Social Insurance Supreme Health Board);

G)    Payment of funeral expenses;

H)   Awarding pension to the survivors of the insured person in the case of his death.


Definition of Health Benefits
Article 13-
In the case of work accidents and occupational diseases, the medical benefits to be provided for the insured person shall consist of:
 
A)    Medical examination, clinical and laboratory examination deemed necessary by the doctor for diagnosis and, if necessary, admission to a hospital for all kinds of treatment;

B)    Supply of medicines, and other medical equipment required during treatment.
 
The medical benefits provided under the preceding paragraphs aim at maintaining, restoring or improving the insured person's health and his ability to work and to attend to his personal needs.
 

Duration of Health Benefits
Article 14-
Health benefits shall continue to be provided as long as required by the state of health of an insured person who has sustained a work accident or has contracted an occupational disease. The insured person may be admitted into the convalescent homes of the Institution if the medical authorities of the hospital where he is being treated or the medical boards of the Institution deem it necessary. The provision of the benefits referred to in the preceding paragraphs shall commence as from the date on which the work accident was sustained or the insured person having contracted an occupational disease was placed under treatment by the Institution.
 
If, however, the insured person having contracted an occupational disease is placed under treatment in a health establishment belonging to the employer or treated in a government health institution or in one of the private hospitals which has accepted the tariff approved by the Institution, the benefits shall be deemed to have commenced on the date on which the treatment in question started and the expenses incurred, evidenced by vouchers, shall be reimbursed by the Institution.
 
Benefits in kind shall also be provided for persons drawing a pension for permanent incapacity for work resulting from work accident or occupational diseases or for persons whose pensions have been converted and paid in the form of a lump-sum, provided that their treatment for the same work accident or occupational disease is deemed necessary according to the report of the medical board of a health establishment owned and administered by the Institution.


Obligations of the Employer
Article 15-
The employer is obliged to provide for an insured person who is the victim of a work accident, the health benefit required by his state of health until the Institution takes the appropriate action. The expenses thus incurred, and the travel expenses evidenced by vouchers, shall be reimbursed by the Institution.
 
If the treatment of the insured person lasts longer or if he remains disabled or his incapacity aggravates due to the neglect or delay of the employer in discharging his obligations as specified in the first paragraph, the employer shall be bound to refund all expenses incurred by the Institution due to the above reasons.
 
 
Temporary Incapacity Allowances
Article 16-
An insured person suffering from temporary incapacity for work caused by an work accident or occupational disease shall be paid a allowance of temporary incapacity for each day of temporary incapacity for work.
 
 
Disobedience to Doctor's Recommendations
Article 17-
In the case of a work accident, notification shall be given to the employer or the Institution not later than the day following the accident.
 
If the duration of treatment lasts longer or the insured person becomes invalid or the degree of his invalidity increases because of his failure to obey the recommendations of the doctor following an work accident or occupational disease, cash benefits payable for temporary or permanent incapacity for work may be reduced by the Institution in proportion to his neglect as indicated in the medical report. Such reduction may not, however, exceed a maximum of 50 %.
 
If the insured person refuses undergoing the prescribed treatment notwithstanding the written notice of the Institution, he shall not be provided benefits in kind and shall not be paid cash benefits for temporary or permanent incapacity for work until he subsequently applies to the Institution for treatment.
Determination of Occupational Diseases
Article 18 – (Amended: by the 27th article of Law No.4958 dated 29.07.2003. E.D.06.08.2003)

In case of occupational disease, in order to receive the benefits mentioned in this Law, it is necessary to be detected that the insured has been caught by an occupational disease at the workplace he worked by appropriate health board report arranged by Social Insurance Institution occupational diseases hospital and medical records.

For the insured to receive benefits supplied by this Law after his severance from a job or workplace that could cause a disease; the time following his actually severance from the former job or workplace should be no longer than the time period stated in the regulation.

However, in cases of an occupational disease becoming define by clinical and laboratory findings and the cause of the disease being proven after workplace examination, aforesaid disease still could count as an occupational disease following the ratification of Social Insurance Supreme Health Board, even though the responsibility period is over.


Permanent Incapacity for Work   
Article 19-
If it is determined by the Institution on the basis of medical reports issued by
the medical board of a health establishment owned and administered by the Institution or   of any other health establishment where the insured person may be sent by the Institution after the temporary incapacity for work is terminated, that he has lost at least 10 % of his earning capacity as a result of work accident or occupational diseases, the insured person shall be entitled to a pension against permanent incapacity for work.
 
Where an insured person who is drawing a pension for permanent incapacity for work, or whose pension was converted and paid in the form of a lump sum, is again put under treatment, the degree of loss of his occupational earning capacity shall be reassessed by a report to be issued by the medical boards referred to in the preceding paragraph.
 
 
Calculation of Pension for Permanent Incapacity for Work   
Article 20-
(Amended: Law No.1186/Art.1, 23.10.1969)
The incomes of permanent incapacity for work shall be calculated according to whether the insured person has lost all or part of his occupational earning capacity.
 
In the case of permanent total incapacity for work, the insured person shall be awarded a pension equal to 70 % of his annual earnings.
 
The pension to be awarded to an insured person in the case of permanent partial incapacity for work shall be calculated in the same manner as the total incapacity pension and it shall be paid in proportion to the degree of incapacity for work.
 
If an insured person who is in a state of permanent total or partial incapacity for work is in need of permanent attendance of another person, his pension shall be increased by 50 %. (See to Supp.Art.20, 21, 22, 23, 24 and 44)
 

Case of More Than One Work Accident
Article 21-
Where an insured person has again sustained a work accident or has contracted a new occupational disease, he shall be awarded a pension calculated on the basis of his earnings at the time of the first work accident or occupational disease which was the cause of his permanent incapacity for work, by taking into account all defects. If, however, the daily earnings of the insured person, at the time of the subsequent work accident or 'occupational disease is bigger than the previous earnings, the amount of pension for permanent incapacity for work shall be calculated on the basis of his later earnings.
 
 
Converted of Incomes to Capital
Article 22-
The pension for permanent incapacity for work shall be paid to the insured person for life.
 
If, however, the degree of permanent incapacity for work resulting from an work accident is found to be less than 25 % and the Institution considers that no change is likely to occur in the degree of incapacity for work within the next three years, such pension shall be converted into a lump-sum payment and paid to the insured person upon his request.
 
The lump-sum payable under this Article shall be calculated on the basis of a tariff to be drawn up jointly by the Ministry of Labour and Social Security and Ministry of Health.
 
 
Awarding Of Pension to the Spouse and the Children
Article 23-
(Amended: Law No. 1753/Art.1, 21/6/1973)
The following provisions shall apply in the case of death caused by work accident or occupational disease.
 
I- Annual pension shall be awarded at the following rates out of the 70 % of the annual earnings of the deceased insured person determined in accordance with the provisions of Article 88;

A)  (Amended: 20/3/1985- Law No.3168/Art.1) 50 % to his widow or 75 % if she has no child drawing a pension.

B)  (Annulled: 20/3/1985-3168/Art.6)

C)  Of the children:
a) the phrase "25 % to a son if he has not completed his 18th year, or, if receiving a secondary education his 20th year or, if receiving higher education his 25th year or, if disabled to the extent of being unable to work and if he is not drawing a pension to which he was entitled in respect of an employment covered by a retirement pension or social insurance scheme" was annulled by 28.01.2004- Law No.5073/Art.12 (valid from 01.01.2004); 25 % to a daughter regardless of her age if she is not married or she is divorced or is a widow, provided that she is not employed in an occupation covered by Social Insurance Institution or under the Pension Fund for the Civil Servants or she is not drawing a pension from those institutions.

b) 50 % to each child referred to in subparagraph (a)if both parents were dead or they died subsequently or if there was no matrimonial tie between his father and mother, or if his mother remarries subsequently in spite of there being a matrimonial tie between his father and mother at the date of death of the insured father.

The sons of the insured person who have completed their l8th or 2Oth years and have not been entitled to a pension, subsequently go to school for their education, shall be entitled to receive the benefits referred to in subparagraph (a).

II) In case of the death of the insured person whose pension for permanent incapacity for work has been paid in the form of a lump sum, his survivors shall be awarded a pension in accordance with the provisions of this Act regardless of payment of the lump sum to the deceased person.

III) Adopted children, acknowledged children, legitimised children or children recognised by court decision and posthumous children shall be eligible for a pension to be awarded according to the rules laid down in the foregoing paragraphs.

IV) The total amount of pensions to be awarded to the surviving spouse and children shall not exceed 70% of the annual earnings of the insured person. In order not to exceed this limit, proportional reductions shall be made, where appropriate, in the pensions payable to the survivors.

V) Pensions awarded to the sons of the insured persons shall continue to be paid until they complete their 18th year, if receiving secondary education their 20th year and if receiving higher education their 25th year. The pensions payable to the sons who are disabled to the extent of being unable to work shall not be liable to suppression even after they complete the age limits referred to above. However, the sons who become disabled to the extent of being unable to work after their pensions are suppressed shall again be awarded pensions to be paid as from the first day of the month following the date on which the medical report taken as a basis for the determination of the incapacity for work, provided that they not receiving a pension in respect of their employment covered by a social insurance or retirement pension scheme. The provision of Article 101 is not affected.

VI) (Amended: 20/3/1985-Law No.3168/art.1) If the widow of the deceased insured person remarries, her pension shall be suppressed. If the marriage which was the cause of suppression of pension is dissolved, the pension shall be re-instituted. The widow who becomes entitled to a second pension after the death of her subsequent husband she shall be paid the higher of these pensions. 

VII) (*) (E.D.: 06.08.2003 changed by the 35th article of Law No.4958) Payment of allocated benefits to the daughter of the insured is terminated at the beginning of the period following the date they start receiving income or pension from jobs subject to Social Insurance or Pension Funds of Civil Servants (Emekli Sandığı) or the date they get married. In the case of disappearance of the situation that causes the termination of allocation, from that date on the benefit is allocated again reserving the provision of paragraph (C) in Part One. If the marriage is terminated and wife earns the right to receive benefit from her husband, the person is allocated with the higher benefit.

(* ) Please refer to Supplement12, 44 and 47 of Supplementary Articles for the execution of this provision.

VIII) (Supplement: 29/6/1978-Law No.2167/Art.2) In case of the death of a person while receiving a pension against permanent incapacity for work due to missing 50 % or more of his earning capacity, in his profession, as a result of an work accident or an occupational disease, the survivors of the person shall be awarded pensions not giving regard to whether the death was caused by the work accident or occupational disease which was the cause of the invalidity.


Awarding of Pension to Parents
Article 24-
(Amended: 23/10/1969-Law No: 1186/Art.3)
If the total amount of pensions to be awarded to the spouse and children of the insured person at the date of his death is less than 70% of his annual earnings, the difference shall be paid in equal shares as pensions to his dependant father and mother whose not working being subjected to social security institutions or receiving no monthly pay except from pension allocated according to Law No.2022 (Amended by the 35th article of Law No.4958. E.D.: 06.08.2003). However, the share of neither parent shall exceed one-fourth of 70% of the annual earnings of the insured person.

If the total amount of pensions to be awarded to the spouse and children of the insured person is not less than 70% of his annual earnings, no pension rights shall accrue to the father and mother. (See to Supp.Art.46)


Control Examination of the Insured Person   
Article 25-
An insured person after having been awarded a pension for permanent incapacity for work may, at any time, request a change in his pension claiming that the degree of his incapacity for work has increased or that he requires the permanent attendance of another person; the Institution may, likewise, at any time, require the insured person to submit to a re-examination.

If a report issued by the medical board of a health establishment owned and administered by the Institution subsequent to the re-examination made either at the request of the insured person or at the instance of the Institution establishes that a change has occurred in the state of permanent incapacity for work, the pension shall be increased, reduced or suppressed, as the case may be, as from the ^ beginning of the month following the date of the report.

A request for reconsideration shall not be made for an insured person whose pension has been converted into a lump -sum payment when his permanent incapacity for work diminishes. However, the persons whose permanent incapacity for work increases shall benefit from the change.
If the insured person fails, without an acceptable excuse, to submit re-examination by the beginning of the month following the date specified in the notification of the Institution, his pension for incapacity for work shall be suppressed as from the beginning of the month following the date set for his re-examination.

If, however, the insured person submits to re-examination within three months of the date specified in the notification from the Institution and it is determined that his state of permanent incapacity for work continues, the pension to be calculated on the basis of the new degree of permanent incapacity for work shall be paid as from the date on which it was previously suppressed.

If the insured person submits to re-examination after three months have elapsed since the date specified in the notification from the Institution and it is determined that his state of permanent incapacity for work continues, his pension shall be calculated on the basis of the new degree of permanent incapacity for work and shall be paid as from the first day of the month following the date on which the report was issued.


Responsibility of the Employer
Article 26-
(Amended first paragraph: 20/6/1987-3395/Art.2)
If the work accident or the occupational disease is the result of an intentional act of the employer or consists of an act contrary to the provisions of legislation concerning the protection of workers' health and safety or because of an act considered as a legal offence, the total amount of expenses incurred or to be incurred in the future for the insured person or for his survivors, and if any pension has been awarded the capital value of the pension to be calculated on the basis of the tariff referred to in Article 22 shall be reclaimed from the employer.

(Addition: 28th article of Law No.4958 dated 29.07.2003. E.D.  06.08.2003 combined with) When determining employer and employee responsibilities, urgency principle is taken into consideration.

If the work accident or the occupational disease is caused by an intentional act or fault of a third party, all insurance benefits shall be provided by the Institution, which then shall   exercise its rights under the Code of Obligations to recover from the third party responsible for the injuries caused, as well as from the persons employing such third party if they are likewise at fault.

(Supplement: 24/10/1983-Law No.2934/Art.3) However, in cases of death due to an work accident or due to an occupational disease the Institution shall not exercise its right of recourse to the survivors of the insured person deceased who died as a result of the same work accident or as a result of the same occupational disease which was caused by an intentional act or fault on the part of the deceased.


Notification of Work Accidents
Article 27-
The employer shall notify in writing the local police immediately and the Institution within two days, at the latest, of any work accident. This notification shall be made on the form prescribed by the Institution.

The employer shall be responsible for any loss sustained or to be sustained by the Institution through not having informed it in accordance with the provisions of this Article, in due time, either intentionally or by negligence or by supplying incomplete or erroneous information concerning the work accident.

The Institution shall not reimburse the employer for expenses incurred by him prior to the date of the notification, in the case of an work accident for which notification to the Institution has not been made during the time limit specified in the first paragraph.


Notification of Occupational Disease
Article 28-
If the employer learns or is informed that an insured person has contracted an occupational disease; he shall inform the Institution within the following two days on a form prescribed by the Institution.

The provisions of the second paragraph of Article 27 shall apply to an employer who fails to discharge his obligation or who intentionally furnishes incomplete or erroneous information on the notification form.

The insured person who is in the situation described in the second paragraph of Article 18 shall apply directly to the Institution with the medical report and the necessary supporting documents.


Inquiry into Work Accident
Article 29-
The Institution may, if necessary, hold an inquiry in order to ascertain whether the incident indicated in the notification may be considered to be an work accident. If the inquiry reveals that the information furnished in the notification does not correspond to the truth and that the incident not an work accident, all expenses not legitimately incurred by the Institution shall be recovered from the employer.

Legal proceedings shall also be instituted against the persons concerned under the general provisions.


Inquiry into Occupational Disease
Article 30-
All inquiries shall be made directly by the Institution after a notification concerning an occupational disease has been received.
Notification and appeal
Article 31-
The Institution shall fix the amount of pension to be awarded to insured person or his survivors on completion of the inquiry at the latest within three months following the date on which the necessary documents have been completed, and shall so notify the person concerned in writing.

The person concerned may appeal against the decision of the Institution in the competent court within one year from the date on which he receives the notification of the pension award.

The appeal shall not suspend the application of the decision.

The decision of the Institution shall become final if the person concerned fails to appeal, or as soon as a court decision rejecting the appeal becomes final. The final decision shall not prevent the pension from being changed in accordance with the provisions of Article 25.




CHAPTER III

SICKNESS INSURANCE

Article 32-
The benefits indicated below shall be provided for the insured persons in the case of sickness not covered by insurance against work accidents and occupational diseases;

A) Provide to health benefits,

B) (Amended: 29.6.1978- Law No: 2167/3 of Article) The provide, put, repair and replaced of prosthesis tolls and materials. (Benefits in respect of mouth prosthesis shall provided basis upon Rules that prepared by Institution)

The 20 % of the costs of the prosthesis tolls and materials shall be paid by the insured person. However, the amount of this contribution shall not exceed the 1,5 fold of the minimum wage of the workers, above the age of 16, working at the industrial sector, according to the Article 33 of the Labour Act No.1475dated 25.8.1971, on the date of payment.

(Coming after being amended by decree law published at Official Gazette on 25.02.2000/23975). For the covered people by the above paragraph which injured or disabled because of earthquake on 17.8.1999 and later date, shall not take to share of additive for prosthesis and prosthesis tolls and materials.

C) Payment of daily cash benefit during temporary incapacity for work;

D) Sending the patient elsewhere in the national territory for examination and treatment, when necessary;

E) (Supplement: 20/6/1987-Law No.3395/Art.3) In cases of the persons insured for whom contributions have been paid for at least 300 days during the year preceding the date on which the sickness or invalidity was diagnosed, such persons insured shall be sent abroad for treatment where it is indicated on the medical reports issued by the Board of Health of the Social Insurance Institution that the treatment required cannot be provided in Turkey  and that such a treatment may be given in a foreign country, partly or wholly, or that the invalidity may be corrected or reduced by a considerable extent through such a treatment, in which cases the cost of the treatment and the round trip expenses as well as the essential expenses, in a foreign country, of both of the person insured and, if so required in the medical report, of the person escorting the person insured, shall be refunded, as from the date of 9.7.1987, whereas, such a possibility was, previously, provided under insurance against work accidents (in cases of any appeal raised by the Institution or by the insured person concerned against the medical report issued by a health establishment of the Institution, decision on such an appeal shall be given by the Social Insurance Supreme Health Board. The decision of the Social Insurance Supreme Health Board shall be final).

(Amended: Law No: 4958/Art.29, dated 29.7.2003. E.D. 06.8.2003) In order to be entitled to benefits mentioned in the subparagraphs (A), (B) and (D) of this Article, the insured persons must have been paid contributions for at least 90 days, within the one year which before the date on which the disease firstly diagnosed.
(See to Supp.Art.3)


Scope of Health Benefits
Article 33-
Medical benefits which shall be provided for the insured person in the case of sickness shall consist of the following:

A) Medical examination, clinical and laboratory examinations required for diagnosis and treatment if the doctor deems it necessary;

B) Admission to a health establishment, if necessary for diagnosis and treatment;

C) (Amended: 06.3.1981-Law No.2422/Art.1) Supply of medicines and curative materials required during treatment. (However, the person insured shall pay 20 % of the cost of medicines provided in cases of out patient treatment).A case of abortion shall be considered as a sickness for the purpose of this Act. (See to supp.Art.25)

Medical benefits provided under this Article aim at maintaining, restores or improving the health of the insured person and his ability to work and to attend to his personal needs.


Duration of Health Benefits
Article 34-
Medical benefits to be provided in case of sickness shall continue until the insured person is cured.

Such benefits shall not exceed six months as from the date on which the insured person is put under treatment by the Institution.

If, however, it is determined by the reports of the medical board of a health establishment owned and administered by the Institution that the state of invalidity of the insured person could be eliminated or materially reduced if the treatment where continued, this period (the worlds "until the 18 months" has been annulled by B.1990/27, R: 1991/2 decision of the Constitutional Court, dated of 17.01.1991) may be extended.

The Institution shall be bound to supply, repair and replace, under specified conditions, the prosthesis tolls and materials required for facilitating the recovery of the insured person or reducing his incapacity for work, regardless of the time limits for medical benefits referred to above. (See to Supp.Art.32)


Provisions of Health Benefits for Spouses and Children
Article 35-
The spouse of the insured person and his dependent children shall, in the case of sickness, be provided health benefits referred to in Article 33 of this Act, provided that the duration of the benefits shall not exceed the time limits indicated in Article 34. 20 % of the cost of medicine supplied during out-patient treatment shall be paid by the insured person.  (See to supp.art.3 and 25)

In order that the spouse and the dependent children of the insured person may be entitled to the medical benefits referred to above, the insured person must have paid sickness insurance contributions for at least 120 days in the course of the year proceeding the date on which the sickness manifested itself. (See to supp.art.3)


Provisions of Health Benefits for Pensioner and Income owner and His Family Members
Article 36-
(Amended: O6/3/1981-Law No.2422/Art.2)
For the purpose of the provisions applied under Sickness Insurance;

A)    
a) Persons drawing pensions against permanent incapacity for work or invalidity or old-age pensions, in pursuance to this Act shall be provided the benefits indicated in paragraphs (A) and (B) of Article 32 of the Act;  (See to Supp.Art.8)

b) The dependent spouses, children and the parents of the persons indicated above and the spouses, children and parents drawing pensions shall be provided the benefits indicated in Article 33 of the Act.

B) (Amended: 25.8.1999 Law No: 4447/Art.4 E.D.: 01.01.2000) 10 % of the costs of the medicines provided for the treatment given to the persons referenced above as out patients as well as the prosthesis tolls and materials provided under the subparagraph A/a, shall be paid by those persons themselves. However, the contribution share to be paid for the prosthesis tolls and materials shall not exceed the amount of the monthly minimum wage of the workers, above the age of 16, working at the industrial sector, due to Article 33 of the Labour Act No.1475, dated 25.8.1971.

(Supplement: 25.02.2000/Governmental Decree No: 23975). For the covered people by the above paragraph which injured or disabled because of earthquake on 17.8.1999 and later date, shall not take to share of additive for prosthesis and prosthesis tolls and materials.

C) Health benefits shall be limited to the periods prescribed in Article 34, for each case of sickness;

D) For the purpose of Law No. 991 and 2167 and of the legislation applied by the Funds turned over to the Institution, the provisions of the above paragraphs shall apply to the following persons:

a) Persons drawing invalidity or retirement pensions or pensions against invalidity occurring while on duty and the dependent spouses, children and parents thereof,

b) Spouses, children and parents drawing pensions.



Temporary Incapacity Allowances
Article 37-
A sickness cash benefit shall be paid for each day of temporary incapacity for work as from the third day of the incapacity for work and shall continue for a maximum period of 18 months to the insured persons who have paid sickness insurance contributions for at least 120 days in the course of the year preceding the date on which the temporary incapacity for work commenced.

However, in order to receive sickness cash benefits for temporary incapacity for work the insured person must have obtained a medical report from a doctor or from a medical board designated by the Institution.

(supplement:2801.2004 –LawNo.5073/Art.8 valid from 28.01.2004).The  persons  those were found that they have received  incapacity for work allowance unjustly and without having any base, shall then repay three-fold of the drawn amount to the Institution.

Disobedience to Doctor's Recommendations
Article 38-
Sickness cash benefits shall not be paid to the insured persons for a period during which they fail to comply with the doctor's recommendations.
If the insured person resumes work with his former employer without having obtained from the doctors of the Institution a certificate to the effect that the treatment has been completed and that he is able to resume work, the expenses incurred for treatment of the same sickness shall be recovered from the employer, or if he is employed elsewhere, from the insured person concerned. No sickness cash benefit shall be paid for the said period and if payment has been made the amount paid shall be recovered from the insured person.


Responsibility of the Third Person
Article 39-
A person having caused intentionally or by an act deemed to be a legal offence, the sickness of an insured person or of his spouse or children, shall be liable to pay all expenses incurred under sickness insurance in accordance with the provisions of this Act.


The Lose of Insured Status
Article 40-
(Amended: 16.6.1975-Law No: 1912/Art.2)
The person who has lost his insured status as defined in Article 2, but has paid sickness insurance contributions for at least 120 days in the course of the year preceding the date in question may, himself, his wife and his dependent husband, children and parents receive the benefits referred to in paragraphs (A) and (D) of Article 32 in the case of sickness occurring within six months following the date on which on the said status was lost.

(Amended: O6.3.1981-Law No: 2422/Art.3) 20 % of the cost of the medicines provided to the persons referenced in the above paragraph, as out patients shall be paid by those persons, themselves. (See to Supp.Art.3 and 25)



Persons Employed In Work for Which They Are Not Physically Fit
Article 41-
When an insured person is employed without obtaining a medical report the issuance of which is mandatory under the provisions of labour legislation or is employed on work for which he is not physically fit according to the medical report obtained and is subsequently determined as suffering from a sickness which has manifested itself because he has been employed on work for which he was not physically fit, all expenses incurred in connection with sickness insurance shall be recovered from employer.

Provision of Health Benefits for Parents
Article 42- (Amended: 16.6.1975-Law No: 1912/Art.3)
The dependent parents of the insured person shall, for each case of sickness, receive the medical benefits referred to in Article 33 for the periods specified in Article 34.

However, the persons concerned shall pay 20% of the cost of medicines supplied during out patient treatment. (See to Supp.Art.3 and d 25)

In order that the dependant parents of the insured may be entitled to the medical benefits referred to in the preceding paragraph, the insured person must have paid sickness insurance contributions for at least 120 days in the course of the year preceding the date on which the sickness was contracted.




CHAPTER IV

MATERNITY INSURANCE


Providing Benefits
Article 43-
The benefits indicated below shall be provided in the case of maternity for the insured woman or the uninsured wife of the insured man:

A) Examination of pregnancy and the provision of benefits in kind required for confinement;

B) The provision of benefits in kind required for confinement;

C) Payment of nursing allowance;

D) Payment of maternity cash benefits to the insured woman for the period before and after confinement during which she is incapacitated for work;

E) Sending her elsewhere in the national territory if her state of health resulting from maternity renders this necessary.

(Supplement: E.D.: 06.08.2003 to the Law No.4958 dated 29.07.2003)  Female, and uninsured spouse of male who receives income or salary from the Institution as a result of his/her own employment, can receive from the benefits mentioned in subparagraphs (A), (B), (C) and (E) above in case of maternity.
   
     
Examination and Treatment during Pregnancy
Article 44-
The examination and treatment required in the case of pregnancy shall be provided by doctors or midwives designated in advance by the Institution. If the insured woman fails to submit to examination up to the end of the sixth month of pregnancy or
ceases to submit to examination or follow the treatment deemed necessary by the doctor or midwife, cash benefits payable in the case of the incapacity for work resulting there from may be reduced by the Institution to the extend of 50 %.
The insured woman may choose any doctor or midwife from among those designated by the Institution. However, after having made her choice she may not change her doctor or midwife until after the confinement.


Birth Benefits
Article 45-
The confinement benefits shall consist of the provision of the medical care, medicines and medical supplies required during and after confinement for the insured woman and for the uninsured wife of the insured man.

This benefit shall be provided at home or in health establishments by the midwife previously chosen by the pregnant woman, or by one of the midwives designated by the Institution. If necessary, a specialist may be present during confinement, or if it is deemed necessary by the doctor or midwife, the insured woman or the uninsured wife of the insured man may be admitted to a health establishment for confinement.
The expenses incurred for medical care provided for the child of the insured woman or of the uninsured wife of the insured man in a health establishment owned and administered by the Institution or in a health establishment with which an agreement has been made in accordance with the provisions of Article 123, during her stay at the health establishment, shall not be claimed from the person concerned.


Fixed Cash Benefits for Pregnancy and Birth
Article 46-
(Amended: E.D. 06.08.2003 by the 31st article of Law No. 4958 dated 29.07.2003)

In cases and places where  direct supply of health benefits indicated in 44th and 45th articles is not possible in health facilities contracted by the Institution or according to 123rd article, instead of pregnancy or delivery health benefit, a fixed money aid is done according to the schedule to be declared before or to be ratified by Ministry of Labour and Social Security. If more than one baby is delivered, fixed delivery aid is increased regarding the number of babies.

However:

A) In order to receive a lump-sum payment for the pregnancy, the Institution must be notified of the condition of pregnancy by a report issued by the doctor or midwife bearing a diploma before the confinement;

B) In order to receive a lump-sum payment for the confinement, the Institution must be notified of the confinement within three months following the confinement by a report issued by the doctor or by the midwife bearing a diploma or by a certified birth certificate.


Nursing Allowance
Article 47-
A nursing allowance according to the tariff to be approved by the Ministry of Labour and Social Security shall be paid for each child to an insured woman or to an insured man in respect of the confinement of his wife, provided that the child is not still-born.


Qualifying Conditions for Entitlement to Maternity Benefits
Article 48-
In order to be entitled to maternity benefits in kind or to nursing allowance, or to a lump-sum payment for pregnancy and confinement:

A) Maternity insurance contributions for at least 90 days must have been paid for the insured woman in the course of the year preceding confinement.

B) Maternity insurance contributions for at least 120 days must have been paid for the insured man in the course of the year preceding the confinement and the insured man must have married the woman who gave birth to a child before confinement.
Temporary Incapacity Allowance
Article 49-
(Amended: E.D.: 06.08.2003 by the 32nd article of Law No. 4958 dated 29.07.2003)

In case of maternity of the woman whom maternity contributions has been paid for at least 120 days during the year prior to the delivery, temporary invalidity for service allowance is paid for every day she doesn't work for eight weeks each prior and after the delivery and for two weeks added to the eight week period prior to delivery in case of multiple pregnancy.

(Supplement E.D.: 06.08.2003 with the 32nd article of Law No.4958 dated 29.07.2003) In case of female insured's working until three weeks prior to delivery after her demand and doctor's approval, the period she worked is added to after-delivery period.

This benefit shall not be suppressed for any reason whatsoever.


To be deprived of Temporary Incapacity Allowances
Article 50-
50% of the allowance against temporary incapacity for work shall not be paid to an insured woman who refuses, without any justifiable and reasonable excuse, the maternity benefits to be provided by the Institution and who, according to a medical report issued by a specialist, is found to have fallen ill or her illness has aggravated because of having failed to take the precautions recommended by the doctor or midwife.


The Lose of Insured Status
Article 51-
The persons who have lost the insured status referenced in Article 2 shall receive maternity medical benefit and nursing allowance or lump-sum payments referred to in Article 46, if a child is born within 300 days of the loss of insurance status, provided that maternity insurance contributions have been paid for at least 120 days in the course of the fifteen months preceding confinement for the insured woman or for the insured man whose wife is to receive maternity benefits.




CHAPTER V

INVALIDITY INSURANCE

Providing Benefits
Article 52-
The providing to benefits under invalidity insurance consists of an invalidity pension.


Persons to been Treated as Invalid
Article 53- (Amended.  E.D.: 06.08.2003 by the 33rd article of Law No. 4958 dated 29.07.2003)

An insured person is counted as disable by means of invalidity benefit in cases where the Institution detects:

A) 1-a) Losing at least 2/3 of his work force according to medical records and appropriate health board reports to be organized by Institution's hospitals,

b) Losing at least 2/3 of his work force after treatment performed following 34th article according to medical records and appropriate health board reports to be organized by Institution's health facilities,

c) Losing at least 60% of earning power in occupation as a result of work accident and occupational disease,

     2- Detection of the rate of loss of earning power in occupation is done by occupational disease hospitals of the Institution.

B)  Ones suffering a disease or defect on the date they have started working under this Law's extent are responsible for proving that the disease of defect would not count as invalidity by appropriate health reports of medical records taken from hospitals before employment date. Insured persons having detected before or after employment that they on the date they started working suffered a disease or defect that would count as disabilities can not benefit from invalidity insurance aids by means of these diseases or defects.

Possible pensions paid to these insured before invalidity insurance are taken back.

C)  Provisions to be implemented for this article are organized by regulations to be legislated.


Conditions for Entitlement to Invalidity Pension
Article 54-
(Amended: 06/3/1981-Law No: 2422/Art.4)
In order to be entitled to an invalidity pension, the insured person:

a) Must be considered invalid within the meaning of Article 53;

b) Must have been insured for a total period of 1800 days or at least five years and have paid contributions for invalidity, old-age and survivor's insurance on an average of at least 180 days a year.
Calculation of Invalidity Pension
Article 55- (Amended: 25.8.1999, Law No: 4447/Art.5, E.D.: 01.01.2000)

An invalidity pension shall be awarded to the insured person entitled to such a pension at the rate of ½ of the 60 % of his average annual earnings to be calculated according to the Article 61 of this Act. In cases where the insured person needs the constant care of another person, the rate shall be raised to 70 %. The invalidity pension thus calculated shall be raised according to the provisions of the last paragraph of the Article 61. 

Ex-Type of this Article: (Amended: 06.3.1981, Law No: 2422/Art5)

The following principles shall apply in making the calculations of the invalidity pension.

a) An invalidity pension shall be awarded to the insured person entitled to such a pension, at a rate equal to 70 % of the multiplication of the index corresponding to that person, as indicated in this law, and the coefficient. In cases where the person insured needs the constant care of another person the rate shall be raised to 80 %.

b) The index to be taken as a basis for the calculation of the invalidity pension shall be determined by taking as a basis the average annual earning of the person insured, to be calculated by taking into account his annual earnings taken as a basis for the calculation of the contributions for the last 5 calendar years proceeding the date of termination of the employment of the person insured during which contributions were paid under the invalidity, old-age and survivors insurance schemes.

In cases where the person insured paid contributions for a total period of less than 5 calendar years, he average annual earning shall be calculated by taking as a basis the calendar years for which he paid contributions.
   
c) In cases of the insured persons employed by the Eregli Coal Operations alternately (in groups), the annual average earnings shall be calculated, in accordance with paragraph (b) above, by taking as a basis an amount equal to two times as the annual earning of the person concerned. However, the periods of employments held alternately, exceeding 180 days for each year during the last 5 years of employment taken as a basis for the calculation of the average annual earning, shall not be taken into account.
(See to Supp.Art.20, 21, 22, 23 and 24)



Commencement of Pension Payment
Article 56-
The payment of an invalidity pension to an insured person who, having left his employment, submits a written claim for a pension to which he has become entitled, shall commence as of the beginning of the month following his claim. If, however, the report which certifies him as being disabled carries a date subsequent to the month following his written claim, payment shall be made as from the beginning of the month following the date of the said report.

If the insured person who has been certified as having lost at least two-thirds of his working capacity is receiving allowance against temporary incapacity for work at the date on which the payment of invalidity pension had to be commenced in accordance with the provisions of the preceding paragraph, his invalidity pension shall commence to be paid only as from the beginning of the month following the date on which the payment of the allowance against temporary incapacity for work terminates. If, however, the amount of the invalidity pension to be awarded is more than the amount of the allowance against temporary incapacity for work payable in a month, difference shall be paid as from the date to be determined according to the first paragraph.


./..
#83
APPLICATION REGULATIONS FOR THE LAW ON WORK PERMITS OF FOREIGNERS


SECTION ONE
General Provisions

PART ONE
Objective, Scope, Basis and Definitions



Objective and Scope
Article 1- The objective of the present Regulations is to arrange the procedures and principles related to the granting, restriction, annulation of all kind of work permits, foreigners to be kept exempt from the work permit as well as how to fulfil the advice liabilities, of foreigners to work in Turkey, in the framework of the Law on Foreigners' Work Permits number 4817.



Basis
Article 2- The present Regulations has been prepared based on article 22 of the Law on Foreigners' Work Permits number 4817.



Definitions
Article 3- As for the application of the present Regulations;

Ministry shall mean the Ministry of Labour and Social Security,

Law shall mean the Law on Foreigners' Work Permits Number 4817,

Regulations shall mean the Application Regulations for the Law on Foreigners' Work Permits,

Legal Working shall mean working with social security premiums being paid or exempt, along with the liabilities arranged by the legally granted work permit, residence and other relevant laws as well as regulation provisions,

Residing together shall mean residing under the same roof in accordance with the provisions of the Civil Law,

Relevant Authorities shall mean the related Ministries, public institutions and establishments as well as professional institutions with the characteristic of a public institution,

Academical Efficiency shall mean the certificate which has to be obtained for the purpose of evidencing the professional title of any foreigner who has undergone graduate (Bachelor's) studies abroad, who wish to render service in the framework of the professional services requiring specialization, based on the Law of Higher Eduction Number 2547, and which is the precondition for the acknowledgement of professional efficiencies,

Professional Services shall mean the services requiring specialization, which may be presented by fulfilling the academical and professional efficiency requirements (These services are subject to national and international efficiency requests and License requests and procedures.)

Professional Efficiency shall mean the completion by the service renderer, in view of ensuring service quality, of the professional efficiency request and procedures after having fulfilled the requirement of the academical efficiency, (Preconditions of professional efficiency are the facts that the service renderer is a member of the professional association in his/her own country, that the certificate evidencing his/her execution of his/her profession is issued by the professional association he/she is a member of , and that the latter features sufficient experience in the field he/she shall be employed in.)

Efficiency Requests shall mean the education, examination, practical apprenticeship, experience, language or similar requests which a person supposed to render professional service has to fulfil in order to obtain a certificate or license.

Efficiency Procedures shall mean the administrative requirements or formal processes related to the completion of efficiency requests,

License Requests shall mean, different from the efficiency requests, the independent requests being the requirement of official permission which a persons supposed to render a service has to obtain,

License Procedures shall mean the administrative procedures related to the application and processing course for enabling the application for license, (These comprise the processing period, number of documents or amount of information for the license application.)

Key Personnel: The personnel of any company being incorporated in Turkey and being a corporate body, featuring at least one of the following conditions shall be considered as "Key Personnel";

1) Working in the company's senior management or executive position,
2) Managing the entire or a part of the company,
3) Supervising or checking the works of the company's auditors, administrative or technical personnel,
4) Taking new personnel to the company or terminating the employment of those existing or making suggestions in this subjects;

any person in charge of at least one of the above fields or authorized in these matters; acting in the position of the company's associate, chairman of the board of directors, member of the board of directors, general manager, general manager associate, company manager, company manager associate and similar positions.

Expert shall mean any person featuring any knowledge, which is considered essential for the establishment's services, research devices, techniques or management and which is not known by everybody, (In order to inspect that any such information is present, not just data specific to the establishment shall be taken into consideration, but at the same time it shall be examined by the relevant authorities whether this person features a high quality level related to any task requiring special technical know-how).



PART TWO
Applications for Permit and Extension of Permit



Authorities for Application
Article 4- Applications may be filed with representations of the Republic of Turkey abroad, and directly to the Ministry domestically.



Form of Application and Granting Permit
Article 5- All applications to be made in the framework of the present Law have to be realized by a written request to the authority stipulated in the Regulations, the form and documents attached to the Regulations have to be filled in in the way as described in the form's explanatory section and all documents stated in the form's annex have to be enclosed to the letter of application.

Documents to be requested by the Ministry apart from the documents foreseen in the present Regulations shall be determined according to the national regulations and changing socio-economical conjuncture.

Work permits shall be granted by the Ministry in written form. For the residence permit to be granted to the foreign person supposed to render professional service, who has been granted a work permit or whose work permit has been extended, the condition of temporary membership to the relevant professional chamber is sought.



Application to be filed from Abroad
Article 6- Foreigners shall apply abroad for their work permit at the representations of the Republic of Turkey in the country of their nationality or their permanent residence.

The representations shall send these applications directly to the Ministry along with their probable assessments related to the request for work permit.

The representations of the Republic of Turkey as well as the Ministry conduct the transactions related to the work permit applications to be filed from abroad by means of electronic mails. Whereas the documents requested during the application shall be submitted to the Ministry by the employer of the foreigner within three working days the latest from the date of the foreigner's application to the Representation.

In this case, the period of ninety days as stated in article 12 of the Law starts on the day on which all documents have been passed on to the Ministry.



Applications to be filed Domestically
Article 7- Domestically, application may be filed directly to the Ministry just by foreigners, who have obtained a residence permit of at least six months duration and whos term has not terminated, or their employers.

Except for residence permits granted for purpose of education in Turkey, foreigners who have obtained a residence permit for at least six months based on any reason and who have been granted a work permit within this period of permit, shall not be required to obtain a work visa through external representations of Turkey. However, for foreigners supposed to work in fields which are or may become subject to human trade, the subject whether or not the latter has resided for six months shall not be taken into consideration, and each time the condition of obtaining a work visa from our external representations is sought.

The applications for work permit of foreigners who have come to Turkey by making use of touristic visa or visas apart from the purpose of working or the visa exemption programme between two countries and other visa facilities, and who do not have any residence papers shall not be accepted from within the country.



Applications for Extension
Article 8- The request for extension of the work permit shall be made by the foreigner or the latter's employer directly to the Ministry by enclosing the application form and the original of the former work permit to the documents mentioned in the attachment to the Regulations.

For the extension of a work permit the period of which has expired, application for extension has to be filed within fifteen days the latest from the end of the period. Applications for extension filed after this period shall be subject to the principles applied to foreigners realizing their initial application.

Under the condition of remaining within a period of two months the latest backwards from the date of the work permit's termination, application for extension may also be filed prior to the end of the permit's period.

In case the work permit is extended, the starting date of the work permit extended, is the date on which the terminating work permits ends.

Foreigners applying for the extension of their work permit, may carry on their activities at the same worksite and profession during the time passing untel the conclusion of the application for the work permit's extension, under the condition that the duty assigned to them does not change in nature.


These foreigners shall be accompanied with the certificate given by the Ministry evidencing that they have filed an application for extension to be valid for the period they are active at the worksite. This document shall be valid for a period of ninety days from the date it is issued. The Ministry shall enter an explanatory record related to the subject on the document.

The working of the foreigner being accompanied by this certificate shall be considered as legal working in terms of any consequences to occur. During this period, the legal liabilities of the relevant authorities and the employer shall continue.


PART THREE
Assessment of the Applications for Permit and Extension of Permit

Determination of Lacking Documents by the Ministry
Artcle 9- In case the Ministry determines that the application has been filed with lacking documents, the applicant shall be advised with the request for completing the lacking documents. In this case, the period of ninety days as stipulated in Article 12 of the Law shall start as per the date on which the lacking documents have been passed over to the Ministry.

Obtaining Comments from Relevant Authorities
Article 10- The Ministry sends the application to the relevant authorities and asks them for their comments.

The relevant authorities shall advise their comments to the Ministry within thirty days the latest starting from the the Ministry's record outgoing date. The relevant authorities, in case of necessity, may ask for a reasonable additional time period.

The Ministry and relevant authorities shall collaborate with each other in terms of tools, devices and methods to faciliate communcation, including electronic mail, related to how to convey the advices.


Comments not advised within ist period and any additional time granted, shall be accepted as affirmative by the Ministry.

For applications for the work permit's extension the Ministry shall not ask for the comments of the relevant authorities. However, this incident is included in the scope of professional services and is just valid, unless the nature of the duty to be assigned to the foreign changes.

Determination of Lacking Documents by the Relevant Authorities
Article 11- Upon the requests of the relevant authorities to complete the lacking documents and following the Ministry's ensuring the completion of the lacking documents, the procedure on obtaining the comments of the relevant authorities shall be repeated. In this case, the period of ninety days as stipulated in Article 12 of the Law shall start as per the date on which the lacking documents have been passed over to the Ministry.

Examination of the Documents by the Relevant Authorities
Article 12- The relevant authorities asked for comments by the Ministry pursuant to articles 13, 26, 27, 28, 29, 30, 31 and 32 of the Law shall, while making their assessments related to the application for work permit, also do the necessary studies of the information and dcuments enclosed to the application, in the scope of their own duties and powers.

While examining the validity of the information and documents, the relevant authorities shall also take into consideration the reasons for the annulation of the work permit as stipulated in Article 22, first item of the Regulations.

Assessment during the Granting or Extension of Permits
Article 13- The Ministry evaluates the application for work permit by taking also into consideration the comments of the relevant authorities. However, the provision of Article 10, fifth item of the Regulations is reserved.

In the evaluation of the applications for work permit and permit extensions the Ministry shall, unless otherwise foreseen by bilaterial or multilateral contracts to which Turkey is a party, take into consideration the status of the commercial market, developments in business life, sectoral, geographical and economical conjunctural changes related to employment, under the condition of remaining exclusive for this job, at a certain worksite or operation and certain profession according to the term of the employment contract and the period of employment as well as the foreigner's residence and work permit term.
In the framework of these assessment criteria, to be taken into consideration by the Ministry's assessments pursuant to article 12 of the Law; and also considering the provisions of the bilateral or multilateral contracts to which Turkey is a party; "business and professions considered not suitable for employment of foreigners" based on provinces, shall be reported to the Ministry in periodical intervals of four weeks by the Turkish Employment Agency. They shall advise their assessments probable to occur outside periodical terms separately without waiting for the four-weekly reports.

During the evaluation to be performed by the Ministry for employment of foreigners instead of employment domestically, the Ministry shall decide by taking also into consideration the job's special characteristic as well as documents such as the foreign personnel's testimonial, letter of reference, letter of authorization or letter of acceptance approved by competent authorities, to justify the employment of the foreigner, along with the documents to be requested during the application.

The Ministry may also ask for the comments of the said institution by communicating to them the application and additional information and documents, to be essential for its assessment described in the third and fourth item.


Periods to be Included in the Legal Working
Article 14- Annual leaves, industrial accident and professional disease, sickness and maternity leaves, periods for which allocations for temporary unemployment as well as unemployment insurance allocation is received, are included in the legal working time.

Working Times and Interruption of Residence Permit
Article 15- In terms of the work permits, Uninterrupted Residence means the residence and working period including also the periods mentioned in article 9 of the Law and the residence permit granted in conformity with the relevant laws.

Working periods passing abroad of any foreign employee, who is send abroad by his/her employer temporarily and by leave for business purposes, and whose premiums are paid to the Turkish social security institution, shall be included in the residence and working periods.

However, the residence of any foreigner who has failed to prolong his/her residence papers for more than six months, despite his/her staying in Turkey, shall be considered as interruption in terms of work permits.


PART FOUR
Decisions on Permit and Extension and Communicating the Decisions
to the Relevant Authorities

Decision
Article 16- The Ministry decides as a result of the evaluation, taking also into consideration the points of view of the relevant authorities. The provision of article 10, fifth item of the Regulations is reserved.

Decision of Correction
Article 17- In case it is later on comprehended that there is a material fault in the decisions adopted according to the present Law, the Ministry shall directly adopt the decision of correction or amendment. The decision with reasons shall be advised to the parties.

Communication of the Ministry's Decision to the Relevant Authorities
Article 18- The Ministry shall advise the decision of the work permit, in case of applications filed from abroad, to the representation of the Republic of Turkey to be communicated to the applicant; the work permit and extension decision, in case of applications filed domestically, to the foreign applicant or the employer filing the application.

The Ministry shall advise affirmative decisions related to the work permit and extension to the relevant authorities as well.

Upper Limit related to Permit and Extension
Article 19- The period of the work permit may not be longer than the employment contract or the job's term, taking also into consideration the terms related to the granting and extension of work permits as stipulated in the Law and the Regulations.



PART FIVE
Restriction, Rejection, Cancellation, Return, Becoming Void of Permits



Restrictions of Permits and Exceptional Cases for the Restriction
Article 20- Under the condition that the rights provided by bilateral or multilateral contracts, to which Turkey is a party, are reserved and in the framework of the reciprocity principle; the work permits may be restricted, in cases required by the status in the industrial market and the developments in the working life, the sectoral and economical conjuncture conditions related to employment, for a certain period, certain agricultural, industrial or service sectors, a certain profession, business branch or as per any civil and geographical field.

However, this restriction shall not be applied while granting any work permit without time limit pursuant to the provision foreseen in article 6 of the Law.

The Ministry may make this restriction directly depending on the developments and requests.

Rejection of Request for Permit
Article 21- In the framework of the provisions foreseen in article 12 of the Law as well the provisions of jobs and professions not allowing for the employment of foreigners as stated in other laws, and in case any action contrary to the relevant national and international regulations is determined, and besides, in case of existence of the reasons stated in the first item of article 22 of the Regulations, the request for the work permit or the extension of the work permit shall be rejected.

For those to work in the framework of professional services, the foreigners have to enclose to their application forms during their application the certificates obtained by them from national and international professional organizations within the recent six months evidencing that they have not been subject to any penalty of being forbidden the profession, that they are members, that they execute their profession and also evidencing their professional efficiency. Foreigners, who have been subject to any penalty of being forbidden the profession and those without academical efficiency may not file any application.

In case it is advised that there is a request for the same job at the worksite requesting work permit, of the same quality from within the country, in the contents of the report mentioned in the third item of the Regulations' article 13, then the Ministry shall evaluate any request for work permit or extension of work permit in accordance with the fourth item of the Regulations' article 13. In case the foreigner's qualities fail to be more suitable, the Ministry rejects the request for permit pursuant to item (b) of the Law's article 14.

Applications filed despite the application restriction mentioned in the third item of the Regulations' article 7 shall be rejected pursuant to the Law's article 12 and 14/c.

Cancellation of Permit
Article 22- In case the foreigner works contrary to the restrictions stated in the Law's articles 11 and 13, the national regulations in Turkey, the regulations and arrangements of the relevant authorities or in case it is determined later on that the foreigner or the latter's employer has presented lacking, false or untrue information and documents in his/her request for work permit along with the existence of any of the incidents foreseen in article 14 of the Law, the Ministry shall cancel the work permit granted by the latter and shall advise the case to the relevant authorities and the applicant.

Besides, in case of the relevant authorities' request with reasons, the Ministry shall make the assessment related to the cancellation.

Return of Permit Cancelled
Article 23- In case the foreign personnel, who had been given a work permit, fails to start to work or applies to work at another firm, the Ministry may, upon evaluation of the reasons, request the return of the permit granted before.

The originals of work permits cancelled have to be returned to the Ministry by the user within one week following the date of the notice.

The Permit's becoming Invalid
Article 24- Work permits shall become invalid pursuant to the provisions arranged in article 16 of the Law.



SECTION TWO
Types of Work Permits

PART ONE
Granting and Extending Work Permits Restricted by Terms

Work Permit restricted by Terms
Article 25- Unless provided to the contrary in the bilateral or multilateral contracts, to which Turkey is a party, the work permit restricted by terms is granted for a work at a certain worksite or establishment and a certain profession and to be valid for maximum one year.

Geographical Area of Work Permit restricted by Terms
Article 26- The Ministry may extend or narrow down the area of validity of the work permit restricted by terms by taking as basis the city, administrative border or geographical area.

In case this is applied, the Ministry shall communicate this decision to the relevant authorities to whom the former advises the work permits.

Extending the Work Permit restricted by Terms
Article 27- As for the extension of any work permit restricted by terms, the periods related to extension as foreseen in article 5 of the Law shall be essential.

After a legal working time of one year, the term of the work permit may be extended for a maximum of further two years to work at the same worksite or establishment and in the same profession.

At the end of the three years legal working period, the terms of the work permit may be extended for a maximum of further three years to work in the same profession and with any employer of his/her discretion.

Applications for Work Permit restricted by Terms of the Foreigner's Spouse and any Childen under his/her Care
Article 28- Work permit restricted by terms by also be granted to the spouse of any foreigner, having come to Turkey to work, as well as the children under the foreigner's care, under the condition that they have legally resided with the foreigner without interruption for at least five years.

Submitting the Certificate Evidencing Legal and Uninterrupted Residence
Article 29- The fulfillment of the legal and uninterrupted residence condition of at least five years as foreseen in article 5 of the Law as well as in article 28 of the Regulations, shall be evidenced by a certificate to be obtained from the police authorities. This certificate shall be presented to the Ministry along with the other documents during the application for work permit restricted by terms. The assessment of the condition of legal and uninterrupted residence for five years is subject to the matters stated in article 9 of the Law.

Calculation of Legal and Uninterrupted Residence Periods of Spouse and Children
Article 30- While assessing whether the condition has been fulfilled that the foreigner's spouse and children have had legal and uninterrupted residence for at least five years according to article 28 of the Regulations, periods passed during education shall be considered as terms in residence.

However, in order to enable them to work, it is conditional that they are not students pursuant to the Regulations on Students of Foreign Nationality Studying in Turkey which has been released pursuant to the Law No. 2922 on Students of Foreign Nationality Studying in Turkey.


PART TWO
Granting and Extension of Work Permits without Terms and
The Relation of the Extension with Residence

Work Permit without Terms
Article 31- Unless otherwise foreseen in the bilateral or multilateral contracts, to which Turkey is a party, foreigners having been residing in Turkey legally and uninterruptedly for at least eight years or having undergone a total working period of six years in Turkey, may be granted a work permit without terms without taking into consideration the status of the industrial market and the developments in business life and in case of approval of the relevant authorities; without being restricted with any certain operation, profession, civil or geographical area.

Submitting the Certificate Evidencing Legal and Uninterrupted Residence
Article 32- The fact that the foreigner has fulfilled the condition, which has been foreseen in article 6 of the Law, of having had a legal und uninterrupted residence for at least eight years, shall be evidenced by the certificate to be obtained from the police authorities. This certificate shall be presented to the Ministry along with the other documents during the application for work permit without terms. The assessment of the condition of legal and uninterrupted residence for eight years is subject to the matters stated in article 9 of the Law.


Calculation of the Legal and Uninterrupted Residence Periods of the Foreigner, his/her Spouse and Children
Article 33- While evaluating whether the condition has been fulfilled that the foreigner has legally and uninterruptedly resided for at least eight years; periods passed during education are not taken into consideration. However, pursuant to item 4 of article 5 of the Law, the educational periods of the foreigner's spouse and children, who have come to Turkey together with the foreigner, have resided together with the foreigner and having undergone education at the same time, are considered as residence terms.

However, in order to enable them to work, it is conditional that they are not students pursuant to the Regulations on Students of Foreign Nationality Studying in Turkey which has been released pursuant to the Law No. 2922.

Calculation of Legal Working Time and Submitting the Certificate Evidencing This Incident
Article 34- The fact that the condition foreseen in article 6 of the Law, that the foreigner has to have legally worked for a total of six years, has been fulfilled shall be evidenced by a certificate to be obtained from the relevant authorities and this certificate shall be presented to the Ministry along with the other documents during the application for work permit without terms.
The assessment of the condition of legal and uninterrupted residence for a total of six years of legal working is subject to the matters stated in article 9 of the Law.


Residence Permit to be Granted Depending on the Work Permit without Terms
Article 35- The residence permit periods of foreigners, who have been given the work permit without terms, shall be determined by the Ministry of Internal Affairs in accordance with the regulations related to the foreigners' residence and voyages in Turkey.

The work permit without terms shall be used depending on the residence permit unless there is any change in its scope.

In case the police authorities do not extend the periods of residence permits granted based on any work permit without terms, the Ministry shall be advised.


PART THREE
Granting and Extension of Independent Work Permits and
The Relation of the Extension with Residence


Independent Work Permit
Article 36- The independent work permit may be granted under the condition that the foreigners have resided in Turkey legally and uninterruptedly for a period of at least five years, that their activities create an added value in terms of economical growth and have a positive influence on employment.

While determining the influence on employment, the points of view of the relevant authorities shall be taken into consideration as well.

Foreigners included in the scope of professional services, in the framework of the relevant regulations, shall along with the other documents submit to the Ministry a certificate, which they have obtained from the relevant authorities, evidencing that they execute their professions.



Submitting the Certificate Evidencing Legal and Uninterrupted Residence
Article 37- The fact that the foreigner has fulfilled the condition, which has been foreseen in article 7 of the Law, of having had a legal und uninterrupted residence for at least five years, shall be evidenced by the certificate to be obtained from the police authorities. This certificate shall be presented to the Ministry along with the other documents during the application for independent work permit. The assessment of the condition of legal and uninterrupted residence for five years is subject to the matters stated in article 9 of the Law.


Calculation of the Legal and Uninterrupted Residence Periods of the Foreigner, his/her Spouse and Children
Article 38- While evaluating whether the condition has been fulfilled that the foreigner has legally and uninterruptedly resided for at least five years; periods passed during education are not taken into consideration. On the other hand, pursuant to item 4 of article 5 of the Law, the educational periods of the foreigner's spouse and children, who have come to Turkey together with the foreigner, have resided together with the foreigner and having undergone education at the same time, are considered as residence terms. However, in order to enable them to work, it is conditional that they are not students pursuant to the Regulations on Students of Foreign Nationality Studying in Turkey which has been released pursuant to the Law No. 2922.

Residence Permit to be Granted Depending on the Independent Work Permit
Article 39- The residence permit periods of foreigners, who have been given the independent work permit, shall be determined by the Ministry of Internal Affairs in accordance with the regulations related to the foreigners' residence and voyages in Turkey.

The independent work permit shall be used depending on the residence permit unless there is any change in its scope.

In case the police authorities do not extend the periods of residence permits granted based on any independent work permit, the Ministry shall be advised.

Other Documents which may be Requested along with the Documents Essential for the Independent Work Permit
Article 40- For the purpose of being taken into consideration while evaluating the independent work permit, the documents evidencing the contribution of the foreigner's activities to the national economy and that the foreigner has sufficient income for the activity the latter shall perform, may be requested to be presented to the Ministry along with the other documents.

Certificate of Application for Independent Work Permit
Article 41- Any foreigner considered appropriate to be granted an independent work permit, shall be delivered a "Certificate of Application for Independent Work Permit" related to the latter's permission to work independently.

Validity of Certificate of Application for Independent Work Permit
Article 42- The certificate of application for independent work permit is valid for a period of three months from the date it has been issued. The foreigner may be granted the independent work permit, after having established his/her worksite, in case the latter submits his/her trade register record to the Ministry.

In case the independent work permit is not granted to the foreigner, the Ministry shall advise the department keeping the trade register records and the police authorities in order to be able to assess the foreigner's status in Turkey in terms of the residence permit and, if necessary, to prevent the foreigner's unpermitted residence.


PART FOUR
Exceptional Cases

Exceptional Cases
Article 43- Unless otherwise foreseen in the bilateral or multilateral contracts, to which Turkey is a party; under the condition of not acting contrary to the national regulations and complying with the regulations on professional services, work permits may be exceptionally granted to foreigners, whose status is mentioned in the following articles, by taking into consideration the comments of the relevant authorities.

The extension and cancellation of exceptional work permits is subject to the procedures in the general provisions of the Regulations. Besides, exceptional work permits shall also be cancelled in case it is determined that the requirements of the relevant professional regulations have not been fulfilled. Decisions as to the granting, cancellation and extension of exceptional work permits shall be communicated to the relevant authorities.

Foreigners married to Turkish Citizens
Article 44- Foreigners married to a Turkish citizen and living in Turkey with their spouse in the marital union, and who stay in Turkey legally without being subject to any condition of time for residence, may apply directly to the Ministry for exceptional work permit.

In case the marriage is terminated prior to marriage period's having completed three years or in case it is determined that the marriage has not been realized for establishing the marital union, the work permit becomes invalid. Continuing to work with this certificate is considered in the scope of illegal working and emloyment. The Ministry shall record explanatory notices related to this matter on the work permits granted in this framework.

Foreigners Considered to have Settled Down
Article 45- Work permits of foreigners who have settled down in Turkey, along with the fact that their marital union with a Turkish citizen has ended after a period of at least three years, may be exceptionally granted under the condition that they stay in Turkey legally.

The concept foreigner settled down means any person observed by the Ministry of Internal Affairs in this framework in terms of residence permits. These foreigners have to present the certificate, which they have obtained from the police authorities and evidencing their status, to the Ministry during their application along with the other documents.

Childern of Foreigners Considered to have Settled Down
Article 46- Work permits of children from the Turkish spouse of foreigners who have settled down in Turkey, along with the fact that their marital union with a Turkish citizen has ended after a period of at least three years, may also be exceptionally granted under the condition that they stay in Turkey legally.


Persons losing the Turkish Citizenship
Article 47- In case foreigners included in the scope of articles 19, 27 and 28 of the Turkish Citizenship Law number 403 apply for work permit, work permits may be exceptionally granted under the condition that they evidence their status during the application with the Ministry.

Foreigners having come to Turkey and Completed their Studies prior to Completing their Age of Maturity
Article 48- In case foreigners, who have been born in Turkey or who have come to Turkey before completing their age of maturity according to their own national law, if without nationality, then according to the Turkish regulations, and who have graduated in Turkey from any training college, academy or university, apply for work permit, their work permits may be exceptionally granted under the condition that they evidence their status during their application to the Ministry.

Foreigners in the Framework of the Settling Law number 2510
Article 49- In case foreigners, who are considered emigrant, refugee or nomad according to the Settling Law number 2510, apply for work permits, their work permits may be exceptionally granted under the condition that they evidence their status during their application to the Ministry.

Citizens of European Union Countries as well as their Spouse and Children
Article 50- In case citizens of the European Union countries as well as their spouse and children not being citizens of the European Union countries, apply for work permits, they may be exceptionally granted their work permits.

The provisions of articles 6 and 7 of the Resolution no. 1/80 of the European Economical Community – Partnership Council of Turkey, which is more favorable for these foreigners' entering the business market, is reserved in relation to the article 11 of the said Resolution.

Foreigners Commissioned with the Representations of Embassies, Consulates and International Institutions in Turkey as well as their Spouse and Children
Article 51- The work permits of those employed in the service of diplomats, administrative and technical personnel commissiond with representations of international institutions, embassies as well as consulates of foreign countries in Turkey, and of spouses and children of diplomats and administrative and technical personnel commissioned with embassies, consulates and international institutions in Turkey, under the condition of being in the framework of reciprocity and being restricted with the period of the assignment, may be granted exceptionally in accordance with the points of view of the said Ministry.

Foreigners Coming on a Short-Term Basis for Scientific, Cultural and Sportive Purposes
Article 52- In case foreigns, who shall come to Turkey for a period exceeding one month for the purpose of scientific and cultural activities and for a period exceeding four months for sportive purposes, apply for work permits, their work permits may be exceptionally granted for the period they shall stay in Turkey.

Foreigners featuring the Status of Key Personnel
Article 53- In case foreigners featuring the status of key personnel, who are supposed to be employed in the acquisition of goods and services, the performance of a task or the operation of a plant, besides, in construction and all kind of building works, by means of contracts or tenders by legally authorized ministries as well as public institutions and establishments, apply for work permits, the work permits for the period stated in the contract or tender may be exceptionally granted.

Work Permits of Foreign Instructors at Schools active in the framework of Embassies or Consulates in Turkey, Foreigners Commissioned with Cultural Institutions as well as Foreigners to be Commissioned with Religious Institutions
Article 54- The foreign instructors at schools active in the framework of the embassies or consulates in Turkey, the officials of foreign countries' cultural institutions in Turkey, religious officials to be commissioned with religious institutions, shall be granted the residence permits to work by the Ministry of Internal Affairs.

Applications for permits in these matters shall be made through the Ministry of Foreign Affairs. .


SECTION THREE
Exemptions from Work Permit, Liability of Notification,
Power of Supervision and Collection of Fees

PART ONE
Exemptions from Work Permit

Exemptions
Article 55- The provisions stipulated by special laws being reserved and under the condition that the foreigner as well as his/her employer fulfil their liabilities arising out of other laws, the following shall not be required to obtain any work permits:

a) Persons kept exempt from work permit by means of bilateral or multilateral contracts to which Turkey is a party,

b) Foreigners, whose permanent residence is abroad, and who are coming to Turkey for a period of less than one month for scientific, cultural and artistic activities, and for a period of less than four months for the purpose of sportive activities,

c) Those coming to Turkey for the assembly, maintenance and repair works of any machinery and equipment imported to Turkey, for rendering the training of their use or for taking delivery of the equipment, for a period not exceeding three months and under the condition of evidencing this incident by the documents to be presented by the latter,

d) Those staying in Turkey for training related to the use of goods and services exported from Turkey or imported to Turkey, under the condition of not exceeding three months and evidencing this incident by documents to be presented by the latter,

e) Those staying in Turkey for show and similar duties at fairs and circuses, under the condition of not exceeding three months and evidencing this incident by documents to be presented by the latter,

f) Those coming in order to obtain information and experience at universities as well as public institutions and establishments, under the condition of not exceeding three months and evidencing this incident by documents to be presented by the latter,

g) Those notifying to the relevant authorities that they may provide significant services and contributions to Turkey in a period not exceeding one month in sociocultural and technological fields as well as training subjects.

However, in case the service periods of foreign architects, engineers and town-planners subject to provisions of exemption included in the framework of professional services exceeds one month, they have to obtain the work permit from the Ministry, become a temporary member of the relevant professional chamber and comply with the practices of national institutions and establishments.

Exemption terms may not be extended. Besides, the foreigner shall benefit from the provisions of exemption just once in the same year.

The foreigners mentioned in this article shall notify their purpose of coming, information such as how long and where they intend to stay to the police authorities of the place where they stay. As for these notifications, there is no necessity for attending personally.

Letter of Confirmation for Exemption from Work Permit
Article 56- For foreigners exempt from the work permit, a ,,Letter of Confirmation for Exemption from Work Permit", the form and contents of which is to be determined by the Ministry, shall be issued upon their request.


PART TWO
Liability of Notification, Power of Control and Collection of Fees

Liabilities of Notification
Article 57- The liabilities related to notification arranged in article 18 and 19 of the Law and the Temporary Clause 2 and Temporary Clause 3, are fulfilled in the cases foreseen by Law and within the periods foreseen by Law, by filling in the Foreign Personnel Application Form enclosed to the Regulations.

These notifications are also send to the Ministry by e-mail.

Power of Control
Article 58- The Ministry's business inspectors and the Social Security Institution's insurance inspectors supervise in accordance with the provisions of current Industrial Law's section headed Control and Inspection of Business Life, whether the liabilities attributed to foreigners and the foreigners's employers in the Law and the Regulations.

The inspection and control personnel of the administrations with supplementary budget and the departments included in the general budget, also control, during all kind of control and examinations, which they shall performed at the worksites pursuant to their own regulations, whether employers employing foreigners and the foreigners fulfil their liabilities arising out of the Law. The control results shall be notified to the Ministry as well.

The Ministry communicates the control results to the relevant authorities if the former considers it necessary.

Collection of Fees
Article 59- The work permits and period extensions to be granted to foreigner are subject to fees according to section (IV) of the tariff number (6) associated with the Law of Fees number 492.

The Ministry of Foreign Affairs is authorized to determine the work permit fees taking into consideration the principle of reciprocity.


SECTION FOUR
Other Provisions

Work Permits of Foreigners Supposed to Work in the Framework of the Private Educational Institutions Law
Article 60- Pursuant to article 29 of the Law; foreigners supposed to work in the framework of the Private Educational Institutions Law number 625 dated June 8, 1965, are subject to the provisions of the Law and Regulations. The work permits of foreigners in this framework are granted by the Ministry pursuant to the provisions of the Law and Regulations.

Regulation Arrangements of Relevant Authorities
Article 61- The relevant authorities shall make their internal arrangements related to the application of the Law and Regulations within one month the latest from the date on which the Law is put into force.


Membership of Foreigners to Work in the Scope of Professional Services, with the Relevant Professional Institutions
Article 62- Engineers, architects and town-planners having obtained the work permit by means of the applications made from abroad in the framework of professional services, have to become members with the relevant professional chamber within one month the latest from the date they have made their entrance to Turkey.

The start of the membership liability of foreigners in this situation shall start with the date of their entrance to Turkey.

As for the granting of residence permit in association with the work permit related to professional services, the condition of membership to the relevant professional chamber is sought.


SECTION FIVE
Final Provisions

Validity
Article 63- The present Regulations are put into force on Sept.6, 2003.

Enforcement
Article 64- The provisions of the present Regulations are enforced by the Minister of Labour and Social Security.






FOREIGN PERSONNEL APPLICATION FORM ANNEX-1
(please fill in in 4 copies)



A.INFORMATION ABOUT EMPLOYER / INSTITUTION /
ESTABLISHMENT

1. Name / Title:

2. Address of Head Offices in Turkey:

----------------------------------------------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------
3. Address where the Foreign Personnel shall work:
--------------------------------------------------------------------------------------------
Phone and e-mail address: --------------------------------------------------------------
4. Residence Address of the Foreigner: (This information shall be adviced to the Ministry in the framework of the liability of notification pursuant to article 57 of the Regulations as per the provinces and counties. In case of address changes occuring later on, the Ministry shall be notified separately.)
5. Statistical Regional Units Classification of the Place of Employment (pursuant to the Decree number 2002/4720 dated August 28, 2002 published in the Official Gazette no. 24884 dated Sept.22, 2002):
Level III ¬¬!__! Level II !__! Level I !__!
6. Capital Structure : Domestic Capital !__! Foreign Capital !__!
7. Type of Company: 1-Ordinary Partnership !__! 2-Collective Corporation !__!
3-Limited Company !__! 4-Joint-Stock Company !__!
5-Other, please specify ................................
8. Subject of Activity:
9. Establishment's Social Security Institution Registration Number :
10. Tax-Office and Number:
11. Date of Foundation:
12. Registered Capital (TL) :
13. Paid-up Capital (TL) :
14. Turnover of Last Year (TL) :
15. Exports of Last Year (US Dollar) :
16. Total Turkish Personnel Still Working at Foundation; (Additional List may be enclosed.)
Number Profession Function
............... .................. ...................
............... .................. ...................
............... .................. ...................
17. Foreign Personnel Still Working at Foundation; (Additional List may be enclosed.)
Name/Surname Nationality Profession Function Institution issuing
Work Permit/ Date-Number
..................... ............... ................ .............. ....................................
B. INFORMATION ABOUT THE FOREIGN PERSONNEL FOR WHOM THE WORK PERMIT IS REQUESTED
1. THE FOREIGN PERSONNEL'S:
- Passport No :
- Name and Surname :
- Father's Name:
- Mother's Name :
- Place and Date of Birth (Day, month, year) :
- Nationality : __ __ __ __ __
- Sex : F !__! M !__!
- Marital Status : Married !__! Single !__! Divorced !__! Widowed !__!
- If married, Nationality of Spouse : __ __ __ __ __
- Children : Yes !__! No !__!
- If yes, their number : F !__! M !__!
- Number of persons being under the foreign person's liability of care, if any :
Children : F !__! M !__!
Old persons : F !__! M !__!
Handicapped : F !__! M !__!
2. IF THE CONCERNED PERSON HAS RECEIVED A PERMIT BEFORE
- Permit issuing Authority :
- Letter of Permit Date-Number :
- Validity of Permit :
( Starting and Ending Date )

3. PLACES OF PREVIOUS EMPLOYMENT (Please write the last three places)
Name of Establishment : -----------------------------------------------------------------
Working Period :
Profession.......... Function....... Qualified !__! Not qualified !__!
Handicapped !__! Former Condemned !__!
Reason for Leaving:

Name of Establishment : -----------------------------------------------------------------
Working Period :
Profession.......... Function....... Qualified !__! Not qualified !__!
Handicapped !__! Former Condemned !__!
Reason for Leaving:

Name of Establishment : -----------------------------------------------------------------
Working Period :
Profession.......... Function....... Qualified !__! Not qualified !__!
Handicapped !__! Former Condemned !__!
Reason for Leaving:

4. EDUCATIONAL STATUS
- School of final graduation ( Name / Place ) :
- Subject of Specialization:
5. RESIDENCE ADDRESS
- Local :
- Abroad:
6. IF THE PERSON HAD BEEN IN TURKEY BEFORE
Place(s) of stay :
- Dates :
- Reasons :

7. COMMUNICATION INFORMATION OF ANY PERSON AND/OR ESTABLISHMENTS IN TURKEY THE PERSON MAY GIVE AS REFERENCE
(Name - Surname / Address / Phone numbers / e-mail address )
...
...
8. NATURE OF DUTY TO BE ASSIGNED TO THE PERSON
Job :......................................................
Profession :......................................................
9. PERIOD FOR WHICH THE WORK PERMIT IS REQUESTED
10. SALARY TO BE RECEIVED (Monthly gross)
C. REASON FOR REQUEST OF EMPLOYING A FOREIGNER INSTEAD OF A TURKISH CITIZEN

WE DO HEREBY APPROVE THE ACCURACY OF THE ABOVE INFORMATION .../.../...

AUTHORIZED PERSON OF THE
EMPLOYER INSTITUTION/ESTABLISHMENT FOREIGN PERSONNEL
(Name,Surname,Title of Authorized Person/ (Name, surnam and
Company Stamp and Signature) signature)


REMARK: All of the documents mentioned attached to the form and requested from the foreigner and the establishment to employ the foreign personnel have to be enclosed to the form.


PRINCIPLES TO BE COMPLIED WITH IN COMPLETING THE FORM

1- The Foreign Personnel Application Forms shall be prepared in 4 copies and each of the forms shall be completed completey and in legible form in Turkish. Each form shall include a photograph of the personnel to be employed, which has been taken within the last six months, and all of the forms shall bear the original signature of the Foreign Personnel and the Employer. (Photocopy signatures are not acceptable.)
2- For items not appropriate for the Foreign Personnel or the firm, an explanatory note has to be certainly written.
3- After the form has been completed, application shall be realized by enclosing the documents stated in the relevant regulations and its annex (Approved by a Notary Public and with translation into Turkish).
4- In case the forms are completed insufficiently or the documents mentioned above are lacking or not duly prepared and not completed in the Turkish language, the applications shall not be processed and the application form shall be returned to the applicant.
5- As for period extension applications, the form shall be completed in the same way and application shall be realized by adding the original former letter of permit to the documents mentioned enclosed related to the period extension.
6- Regarding professions which may not be executed by foreigners, applications for work and employment shall not be accepted.
7- Documents determined according to the national regulations and the changing socioeconomic conjuncture and which shall be requested apart from the documents stated in the Regulations, shall be published in the Ministry's Web Site.







ANNEX-2
DOCUMENTS REQUIRED FOR APPLICATION AND TO BE ENCLOSED TO THE APPLICATION

A- DOCUMENTS ESSENTIAL FOR THE APPLICATION
I- DOCUMENTS REQUESTED FROM FOREIGNERS
- Written request for work permit addressed to the Ministry of Labour and Social Security,
- Foreign Personnel Application Form (in 4 copies, bearing photograph taken within the last six months, including the original signature of the employer and the foreign personnel. In case there isn't the original signature of neither the employer nor the foreign personnel, the individual contract made by and between the parties or the certificate of employment acceptance by the employee evidencing that the job proposal made by the employer has been accepted by the employee or its approved copy.)
- Copy of passport certified by Notary Public with Turkish translation,
- Copy of Diploma certified by Notary Public with Turkish translation,
- For applications filed from Turkey, valid Residence Permit,
(The period of the Residence Permit has to be at least six months and the application has to be made within this period)
- - Curriculum Vitae (the enclosed C.V. format has to be completed)
For Tourism Operations with Certificates, who shall employ foreign personnel and craftsmen:
- - Employment contract,
- - Certificates evidencing foreign currency income,
- - Testimonials (except for testimonials of establishments whose seriousness creates hesitation),

Foreigners requesting a work permit in the framework of professional services, have to present the following in addition to the documents above:
- In case the foreigner attends higher education abroad, the "Diploma Equality Certificate" which the latter shall obtain in accordance with the "Regulations for Equality of Foreign Higher Education Diplomas", pursuant to the articles 3 and 7/p of the Law number 2547,
- A certificate obtained within the last six months from the professional institution in the foreigner's country evidencing that the latter is executing his/her profession, that he/she is a member to the professional organisation in his/her own country and that "there isn't any penalty of forbidden profession",
- In case the foreigner renders service for the purpose of consultancy and technical instruction, certificate of work description and copy of contract (between firm-firm or firm-person),
- In case engineers, architects and town-planners render consultancy and technical instruction service of any kind and scope as expert, or prepared projects in projects put out to international tender by public institutions and establishments and are assigned as authorized signatories, an undertaking certified by a notary public or consulate and foreseeing to remain exclusive just for this assignment.

The other documents essential for the application according tot he type of work permit are as follows.

Work Permit restricted by Terms
- In case the spouse and children, whom any foreigner having coming to Turkey for working purposes, is liable to care for, request work permits, a certificate obtained from the security authorities evidencing that they have resided with the foreigner legally and uninterruptedly for a period of at least five years.

Work Permit without Terms
- Certificate obtained from the security authorities evidencing the fulfillment of the condition that the foreigner has legally and uninterruptedly resided for at least eight years.

- Certificate obtained from the relevant authorities evidencing the fulfillment of the condition that the foreigner has had a total legal working time of six years,
- As for foreigners to work as engineers, architects and town-planners, the certificate of temporary membership to be obtained based on article 36 of the Law on Turkish Engineers and Architects Chambers number 6235.

Independent Work Permit
- Tax Register certificate to be obtained by the foreigner from the country the latter has come from,

- Certificates evidencing his/her scientific, technical or professional training for the activity the foreigner wishes to perform,

- Certificates obtained from the competent authorities evidencing that any foreigners being engineers, architects and town-planners feature the academical and professional efficiency for the activity they wish to perform,

- Certificate obtained from the security authorities evidencing the fulfillment of the condition that the foreigner has legally and uninterruptedly resided for at least five years,

- Documents which may be required pursuant to article 40 of the Regulations

Exceptional Work Permit
- Documents evidencing the foreigners' status stated in article 8 of the Law,

- For foreigners married to a Turkish citizen, a detailed extract from the Public Registration Department,

- For foreigners married to a Turkish citizen, copy of the marriage certificate certified by the notary public,

II- DOCUMENTS REQUESTED FROM THE INSTITUTION/ESTABLISHMENT WHICH SHALL EMPLOY FOREIGN PERSONNEL

- Written request for work permit addressed to the Ministry of Labour and Social Security,

- Balance-sheet and profit/loss statement of the last year, approved by the tax office,

- If the establishment has foreign capital, the original of the Turkish Trade Register Gazette showing the establishment's last capital and partnership structure or its copy certified by the establishment,

- For Private Educational Institutions supposed to employ instructors of foreign nationality; copies of the Institution's License and the letter of approval by the Ministry of National Education,

- For administrative personnel to be employed by tourism establishments, copy of the operational and investment certificate having been obtained from the Ministry of Tourism, if any,

- Certificate evidencing that establishments (including consortiums) having been awarded any contract in any tender opened by public institutions and establishments have undertaken the task which they they shall be assigned by the relevant institution and establishment,

- As for corporate bodies supposed to employ any foreign expert in the framework of the engineering, architecture, contractorship and consultancy services, detailed account of salaries evidencing that Turkish and the copy of the contract executed with the foreigner.

B- SUPPLEMENTARY DOCUMENTS TO THE APPLICATION

- If the foreigner is an associate's representative or any key personnel, certificate issued by the foreigner's employer evidencing the situation,

- Copy of the Citizenship Identity Card,

- For foreigners married to a Turkish citizen, the detail extract from the Public Registration Department,

- For foreigners married to a Turkish citizen, copy of the marriage certificate certified by the notary public,

- certificate evidencing the Turkish ancestors,

- Copies of certificates and diploma of professional education,

- Other documents such as testimonial, letter of reference, letter of assignment, letter of acceptance.

C- DOCUMENTS REQUESTED FOR PERIOD EXTENSION APPLICATIONS
- Foreign Personnel Application Form (4 copies, with photograph taken within the last six months),

- Detailed salary account of the last month (bearing the stamps and signatures of the employer as well as the financial consultant, approved by the Turkish Social Securities Institution SSK)

- Original of former work permit,

- As for foreigns who shall work as engineers, architects and town-planners, the certificate of temporary membership to be obtained based on article 36 of the Law on Turkish Engineers and Architects Chambers Association number 6235.

- Notarized copy of the part of the passport related to visaes and validity term.

- Certificate to be obtained from the tax offices evidencing that the foreigner doesn't have any tax obligation due.

NOTE 1 – Since applications of the same firm shall be handled as initial application, application shall be filed again with the same form and documents. Besides, any letter of termination of relation to any corporate body of former employment shall be enclosed to the application.

NOTE 2- If considered necessary, the Ministry may request supplementary documents along with all documents mentioned above.

./..
#84
LAW ON WORK PERMITS OF FOREIGNERS

Law No : 4817
Date of Approval : Feb.27, 2003

Turkish Official Gazette Publication
Date and Number : March 6, 2003 / 25040


PART ONE
Objective, Scope and Definitions


Objective
Article 1- The objective of the present Law is to render the work of foreigners in Turkey subject to permission and to determine the principles related to the work permits to be granted to these foreigners.



Scope
Article 2- The present Law comprises any foreigners working dependently and independently in Turkey, foreigners undergoing professional training with any employer and any natural and juridical persons employing foreigners,

except for those included in the scope of the 2nd sentence of article 29 of the Law on Turkish Citizenship number 403 as well as article 13 of the Press Law and the Decree-Law no. 231 on the Organisation and Duties of the Press, Publication and Information General Directorate,

those granted work permit or employed based on the authorization assigned by law by the Ministries, public institutions and establishments, and

those foreigners kept exempt from the work permit taking into consideration the principle of reciprocity, international law and the law of the European Union.



Definitions
Article 3- In the framework of the present Law;

Ministry means the Ministry of Labour and Social Security,
Foreigner means any person not considered a Turkish citizen according to the Law on Turkish Citizenship number 403,

Dependent worker means any foreigner working under the service of one or more employer(s) being a natural or juridical person, in consideration for renumeration, salary, commission or similar allocation,

Independent worker means any foreigner working on his/her own behalf and account, whether or not the latter employs any other persons.


PART TWO
Liability of Obtaining a Permit and the Power of Granting the Permit


Liability of obtaining a Permit and the power of granting the permit
Article 4- Unless otherwise specified in bilateral or multilateral contracts, to which Turkey is a party, foreigners have to obtain a permit prior to starting to work in Turkey dependently or independently.

In case required by the country's benefits or related to incidents of force majeure, the work permit may also be granted after having started working, under the condition that the working period has not exceeded one month and by obtaining the approval of the Ministry, and under the condition that the relevant authority has been advised prior to starting to work.


PART THREE
Work Permits and Work Permit Exemptions and Restrictions


Work permit restricted by terms
Article 5- Unless provided to the contrary in the bilateral or multilateral contracts, to which Turkey is a party, the work permit restricted by terms is granted for a work at a certain worksite or establishment and a certain profession and to be valid for maximum one year, taking into consideration the status of the business market, the developments in working life, sectoral and economical conjuncture changes related to employment, in accordance with the validity term of the foreigner's residence permit as well as the validity term of the employment contract or the work.

Following the legal working period of one year, the validity term of the work permit may be extended up to three years under the condition of working at the same worksite or establishment and in the same profession.

At the end of the legal working period of three years, the validity term of the work permit may be extended up to six years under the condition of working in the same profession and with any employer of his/her discretion.

The spouse and dependant children of any foreigners having come to Turkey for working purposes, who have accompanied the latter or have been brought by the latter later on, may be granted a work permit restricted by terms as well, under the condition that they have resided with the foreigner legally and uninterruptedly for at least five years.

The Ministry may extend or narrow down the geographical validity area of the work permit restricted by terms.



Work permit without terms
Article 6- Unless provided to the contrary in the bilateral or multilateral contracts, to which Turkey is a party, the work permit without terms may be granted for any foreigner who has been residing in Turkey legally and uninterruptedly for at least eight years or who features a total legal working period of six years, without restricting the work permit by a certain operation, profession, civil or geographical area, and without taking into consideration the status of the business market and the developments in working life.



Independent work permit
Article 7- Foreigners who shall work independently, may be granted the independent work permit by the Ministry under the condition that they have legally and uninterruptedly resided in Turkey for at least five years.



Exceptional cases
Article 8- Unless otherwise foreseen by bilateral or multilateral contracts to which Turkey is a party, a work permit may be granted to the following persons, not being subject to the periods foreseen in the present Law:

Foreigners being married to a Turkish citizen and living with his/her spouse in Turkey in the framework of the marital union or whose marital union, after a period of the marital union of at least three years, has ended and along with this have settled dow in Turkey as well as their children from the spouse being a Turkish citizen,

Those having lost the Turkish Citizenship in the framework of the articles 19, 27 and 28 of the Law on Turkish Citizenship number 403, and their distant relations,

Foreigners born in Turkey or who have come to Turkey before having completed the age of maturity according the latters' own national laws, or if without any citizenship, according to the Turkish regulations, and who have graduated from any training college, academy or university in Turkey,

Foreigners who are considered as emigrants, refugee or nomads according to the Settlement Law number 2510,

Citizens of the European Union member countries and their spouse and children not being citizens of the European Union member countries,

Those working in the service of diplomats, administrative and technical personnel commissioned at representations of international representations and consulates as well as embassies of foreign countries in Turkey, as well as the spouses and children of diplomats, administrative and technical personnel commissioned with representations of international establishments, consulates, embassies in Turkey under the condition of being within the framework of reciprocity and being restricted with the period of assignment.

Foreigners to come to Turkey temporarily for a period exceeding one month for the purpose of scientific and cultural activities and for a period exceeding four months for the purpose of sportive activities,

Foreigners featuring the status of key personnel to be employed in the works of acquisition of goods and services, causing the performance of a work or the operation of a plant, by means of the contract or tender procedures by legally authorized Ministries as well as public institutions and establishments.


Periods to be included in legal working period and periods considered as interruption in residence
Article 9- Annual leaves, industrial accident and professional diseases, illness and periods for which maternity, temporary unemployment allowances as well as unempleyment insurance allocation are received are included in te legal working periods.

The foreigner's staying out of Turkey for a total period of not exceeding six months does not interrupt the working period. However, the time spent out of Turkey is considered as working time. The residence of any foreigner who fails to extend his/her residence permit for a period exceeding six months is considered an interruption in terms of the work permits.



Confirmation of work permit exemption
Article 10- Under the condition that the rights provided by the bilateral or multilateral contracts, to which Turkey is a party, are reserved, the foreigners kept exempt from the work permit are given a written confirmation of work permit exemption by the Ministry in case of their request.



Restriction of work permit
Article 11- Under the condition that the rights provided by the bilateral or multilateral contracts, to which Turkey is a party, are reserved, and in the framework of the principle of reciprocity, the work permits may be restricted for a certain validity period, agricultural, industrial or service sectors, a certain profession, business branch or civil and geographical area, in case required by the status of business market and developments in working life, sectoral and economical conjuncture conditions related to employment.


PART FOUR
Granting, Extension, Rejection, Cancellation of Permits, and Taking Legal Remedies


Granting or extension of permits
Article 12- Foreigners residing outside Turkey shall file their applications for work permit with the representations of the Republic of Turkey in the countries where they stay. The representations shall send these applicatons directly to the Ministry. The Ministry shall obtain the comments of the relevant authorities and asses the applications in accordance with article 5; the work permit is granted to those foreigners whose conditions have been found appropriate. This permit is just valid in case upon having received the necessary work visa as well as the residence permit. Foreigners having obtained the work permit, have to apply for an entry visa for the country within ninety days the latest from the date they have obtained this permit, and to apply for the residence permit with the Ministry of Internal Affairs within thirty days the latest from the date they have entered the country.

Foreigners who hold a valid residence permit in Turkey or their employers may directly apply to the Ministry.

Work permits are granted and extended according to the present Law and the provisions of the regulations released, upon the written request of the foreigners holding residence or their employers to the Ministry.

Applications are answered by the Ministry within ninety days the latest.



Obtaining comments from the relevant authorities
Article 13- Work permits related to professions, art or works where they may work in connection with the conditions stipulated by the present Law, shall be granted by the Ministry after having asked for the comments of the relevant authorities including professional efficiency.

The provisions mentioned in the other laws related to the works and professions which may not be performed by the foreigners are reserved.



Rejection of request for permit
Article 14- The request for work permit or work permit extension shall be rejected under the following conditions:

The fact that the status in the business market and the developments in the working life and sectoral and economical conjuncture changes related to employment are not suitable for granting a work permit,

The fact that any person is found for the work applied for, featuring the same qualities to perform that work, within 4 weeks within the country,

The fact that the foreigner does not hold a valid residence permit,

The fact that any foreigner, whose permit application for a worksite, operation or profession has been rejected, files a new application for the same worksite, operation or the same profession prior to the lapse of one year from the date the application for permit had been rejected,

The fact that the work of the foreigner constitutes a threat for national security, public order, general security, public benefit, general ethics and general health.

Cancellation of work permit
Article 15- If the foreigner work contrary to the restrictions mentioned in article 11 and 13 or in case of the existence of any of the incidents foreseen in article 14 or in case it is determined later on that the foreigner or his/her employer has given incomplete or wrong information in the request for work permit, the Ministry shall cancell the work permit granted and advises the situation to the relevant Ministry.



The work permit's becoming invalid
Article 16- Apart from the end of the validity term, the work permit shall become invalid in the following cases:

In case the residence permit of the foreigner becomes invalid for any reason or the validity term is not extended,

In case the validity term of the foreigner's passport or the latter's papers replacing the passport is not extended, (except in case there are the appropriate comments of the Ministry of Internal Affairs or the Ministry of Foreign Affairs)

In case the foreigner stays abroad uninterruptedly for a period of more than six months, except for reasons of force majeure.

Right of taking legal remedies
Article 17- The Ministry shall notify to the foreigner or the latter's employer, if any, the Decision of rejection of the foreigner's request for granting or extending work permit, the cancellation of the work permit, or the Decision of making the work permit invalid, according to the provisions of the Communications Law number 7201.

Objection to the decisions to be adopted by the Ministry may be raised by the concerned parties within thirty days of the date of notification. In case the objection is rejected by the Ministry, the case may be refered to administrative jurisdiction.


PART FIVE
Liability of Notification, Power of Inspection and Arrangement as well as Penal Provisions


Liability of Notification
Article 18– a) Foreigners working dependently shall, from the date they have started to work and from the end of working,

b) Employers employing foreigners shall, from the date on which the foreigner has started to work, in case the foreigner fails to start employment within thirty days from the date on which the work permit is issued, from the end of this period and from the ending date of the employment contract for whatsoever reason,

be liable to notify this incident to the Ministry within fifteen days the latest.



Informing the Ministry
Article 19- Ministries as well as public institutions and establishments authorized to issue work permits to foreigners shall, from the date on which they have issued the work permit, on which they have extended the validity of the work permit and on which they have cancelled the work permit; whereas ministries as well as public institutions and establishments employing foreigners shall, from the date on which they have started employment, communicate all information about the foreigner to the Ministry within thirty days the latest.



Power of Inspection
Article 20- The Ministry's work inspectors and the Social Security Institution's insurance inspectors shall inspect whether foreigners and employers in the scope of the present Law fulfil their liabilities arising from the present Law.

During all kind of inspection and examinations to be made by inspection and supervision personnel of administrations with supplementary budget and departments included in the general budget at their worksite pursuant to their own regulations, they shall also inspect whether employers employing foreigners and the foreigners have fulfilled their liabilities arising from the present Law. The results of the inspection shall be advised to the Ministry as well.



Penal provisions
Article 21- Any independently working foreigner as well as any employer employing foreigners, who have failed to fulfil their liability of notification in due time according to article 18, shall be punished with an administrative fine of twohundredfifity millions Lira for each foreigner.

Any foreigner working dependently without a work permit shall be punished with an administrative fine of fivehundredmillions Lira.

The employer or employer's representative employing any foreigner without work permit shall be punished with an administrative fine of twobillions fivehundredmillions Lira for each foreigner. In this case, the employer or the employer's representative has to provided for the accommodation costs, the expenses necessary for the return to their countries and, if necessary, the health outlays of the foreigners and his/her spouse and children, if any.

In case of repetition of the acts stated in the first, second and third item, the administrative fines shall be applied in double amount.

Any foreigner working independently without the work permit issued according the present Law, shall be punished with an administrative fine of onebillion Lira, and the decision for closing the latter's worksite(s), if any, shall be adopted by the Ministry's regional directorates, and the incident shall be communicated to the province governour for the execution of this decision. In case of repetition, the administrative fine shall be applied in double amount along with closing the worksite(s), if any.

The administrative fines foreseen in the present Law shall be communicated to the concerned parties by the Ministry regional directorate by advising its reasons in accordance with the provisions of the Communictions Law number 7201. Administrative fines shall be paid with the tax offices or financial directorates within seven days from the date on which the administrative fines have been communicated. The concernd parties may object to this fine within this period with the competent criminal court for petty cases. The application shall not suspend the execution and collection of the fine.

Dependently or independently working foreigners as well as employers employing foreigners, who are punished with administrative fine according to the present Law, shall be advised to the Ministry of Internal Affairs.

As for the execution and collection of the administrative fines and other claims not paid in due time according to the present Law, the provisions of the Law on Procedures for the Collection of Public Claims number 6183 are applicable.



Regulations
Article 22- Procedures and principles related to the issuing of all kind of work permits, their restriction, cancellation, foreigners to be kept exempt from the work permit as well as the manner of fulfilling the liabilities of notification, shall be arranged by the regulations to be released in accordance with the present Law.

The regulations related to the application of the present Law shall be released within six months following the publication of the Law jointly with the Ministry, the Ministry of Internal Affairs, the Ministry of Foreign Affairs, the Ministry of Finance, the Ministry of Public Works and Settlement, the Ministry of Health, the Ministry of Tourism, the Undersecretary's Department of the State Planning Organisation, the Undersecretary's Department of Treasury, the Maritime Undersecretary's Department and the Undersecretary's Department of Foreign Trade, and by taking also the opinions of the other ministries, public institutions and establishments as well as professional organisations featuring the property of public institution, which are considered related.



Employment of foreigners in foreign capital investments
Article 23- Foreigners, who are requested to be employed in companies and establishments founded in the framework of the Law of Foreign Capital Stimulation number 6224, may be employed by the work permit issued by the Ministry in the framework of the procedures and principles to be determined by the regulations to be released jointly with the Underseceratry's Department of Treasury.


PART SIX
Amendments made on Certain Laws


Article 24- The staff shown in the attached list number (1) has been produced, and added to the part of the schedule number (1) attached to the Decree-law number 190 related to the Ministry of Labour and Social Security.



Article 25- The following item has been added as item (h) to the article 9 of the Law on the Organisation and Duties of the Ministry of Labour and Social Security number 3146 dated Jan.9, 1985, and the existing item (h) has been passed to item (i) in continuous succession.

"h) performing the works foreseen in the Law on Work Permits of Foreigners,"



Article 26- Article 34 of the Law on Turkish Engineers and Architects Chambers' Association number 6235 dated Jan.27, 1954 has been amended as follows:

"Article 34 – As for engineering and architectural works which foreign contractors or foreign establishments have undertaken in Turkey directly or together with domestic establishments towards Turkish State departments as well as official and private establishments and persons, foreign experts may be employed with the work permit issued by the Ministry of Labour and Social Security, by taking the opinions of the Ministry of Public Works and Settlement and the Association of Chambers, under the condition that this remains exclusively valid for this task."



Article 27- Article 35 of the Law number 6235 has been amended as follows.

"Article 35 – As for works not included in the framework of article 34, foreign engineers and engineers (M.Sc.) as well as architects and architechts (M.Sc.), may be employed with the work permit issued by the Ministry of Labour and Social Security, by taking the opinions of the Ministry of Public Works and Settlement and the Association of Chambers."



Article 28- Article 119 of the Petroleum Law number 6326 dated March 7, 1954 has been amended as follows.

"Article 119 – Holders of Petroleum right, may employ foreign administrative and professional personnel as well as expert personnel with the permit issued by the Ministry of Labour and Social Security, by taking the opinion of the Ministry of Energy and Natural Resources as well as the Ministry of Internal Affairs."



Article 29- The following item has been inserted to article 21 of the Law on Private Educational Institutions number 625 dated June 8, 1965 to follow the fourth item.

"Foreigners to work in the framework of the present Law, are subject to the provisions of the Law on Work Permits of Foreigners."



Article 30- Article 3 of the Law Number 2527 dated Sept.25, 1981 on Free Execution of Profession and Arts of Foreigners of Turkish Lineage in Turkey, the Possibility of their Employment with Public, Private Establishments or Worksites has been amended as follows.

"Article 3 – The working and employment of foreigners of Turkish Lineage in professions, arts and works stated to be able to be performed by Turkish citizens by law, shall be permitted by the Ministry of Labour and Social Security by taking the opinion of the Ministry of Internal Affairs and the Ministry of Foreign Affairs, according to the present Law and the Law on the Work Permits of Foreigners, under the condition of featuring the properties sought by the special laws and fulfilling the respective liabilities."



Article 31- The first item of subparagraph (a) of article 18 of the Tourism Stimulation Law Number 2634 dated March l2, l982 has been amended as follows.

"In operations with certificate, foreign expert personnel and artists may be employed by means of the permit to be issued by the Ministry of Labour and Social Security upon having taken the opinion of the Ministry and the Ministry of Internal Affairs."



Article 32- The following item has been added to article 26 of the Law number 2634.

"Foreigners supposed to be active in the scope of the first item are subject to the provisions of the Law on the Work Permits of Foreigners."



Article 33- The heading of the tarfii number (6) associated with the Law of Fees number 492 dated July 2, 1964 has been amended as follows.

"Paspport, visa, residence permit, Certification Fees of the Ministry of Foreign Affairs and the fees of work permits to be issued for foreigners."



Article 34- The following part has been inserted at the end of the tariff number (6) associated with the Law number 492.

IV- Work Permits to be issued for Foreigners:

1-Work Permit restricted by Terms:
   a) up to 1 year (including 1 year) 50.000.000.- TL
   b) up to 3 years (including 3 years) 150.000.000.- TL
Validity period extensions are subject to the same amounts of fee.

2-Work Permit without Terms: 250.000.000.- TL

3-Independent Work Permit: 500.000.000.- TL

As regards determining the fees of the work permit, the Ministry of Foreign Affairs shall be competent taking into consideration the principle of reciprocity.



PART SEVEN
Temporary and Final Provisions



Provisions annulled
Article 35- The Law no. 2007 dated June 11, 1932 on Arts and Services Assigned to Turkish Citizens in Turkey has been annulled.



Temporary Clause 1 – Work permits granted to dependently or independently working foreigners in accordance with the provisions of the regulations prior to the enforcement of the present Law shall be valid until the end of their validity terms unless annulled by the Ministry pursuant to the present Law or having become void.



Temporary Clause 2 – Information about foreigners who have been employed or granted a work permit by public institutions and establishments prior to the date of the present Law's enforcement, shall be communicated to the Ministry by the authorities issuing the permit, within ninety days from the law's being put into force.



Temporary Clause 3 – The work permits of those who have filed their application for work permit prior to the date of the present Law's enforcement and whose application is continued to be processed, shall be issued by the public institutions and establishments competent prior to the date of the present Law's enforcement and they shall communicate the necessary information to the Ministry within thirty days from the date on which the work permit has been issued.



Validity
Article 36- Article 24 of the present Law shall be put into force on the date the Law is published, whereas the other articles shall be put into force six months following the date of its publication.



Enforcement
Article 37- The provisions of the present Law shall be enforced by the Council of Ministers.


#85
Directive on the Employment of Foreign Personnel in Foreign Direct Investments

(From the Ministry of Labor and Social Security:)

PART ONE
Purpose, Scope, Justification and Definitions

Purpose

Article 1. The purpose of this Directive is to designate the procedures and principles relating to the work permits of foreign personnel to be employed in the companies, branch offices and liaison offices operating within the scope of Foreign Direct Investment Law No: 4875, in line with the stipulations of Law No: 4817 on Work Permits of Foreigners.

Scope

Article 2. This Directive will be in effect for key personnel under foreign citizenship to be employed in foreign direct investments and liaison offices with exceptional features.

However work permits of;

a) Any foreign personnel except those of key nature employed in foreign direct investments with exceptional features, and
b) Any foreign personnel to be employed in foreign direct investments except those having particular features,

will be subject to the provisions of Law No: 4817 and the Implementation Directive on Work Permits of Foreigners.

Justification

Article 3. This Directive has been prepared in accordance with Article 23 of Law No: 4817 on Work Permits of Foreigners and Article 3, Paragraph (g) of Foreign Direct Investment Law No: 4875.

Definitions

Article 4. For the implementation purposes of this Directive;

"Ministry" denotes the Ministry of Labor and Social Security.

"Foreign Direct Investment Having Particular Features" denotes; company or branch office within the scope of Foreign Direct Investment Law No: 4875 and fulfilling at least one of the below specified conditions:

a) The turnover of the previous year of the company or the branch office is at least TRL 30 trillion, provided that the total shares owned by foreign shareholders is at least TRL 400 billion,
b) The amount of exports realized by the company or the branch office during the previous year is at least USD 1 million, provided that the total shares owned by foreign shareholders is at least TRL 400 billion,
c) At least 250 personnel that are registered at the Social Security Authority have been employed by the company or the branch office during the previous year, provided that the total shares owned by foreign shareholders is at least TRL 400 billion,
d) In the event that the company or the branch office is yet to make investments, the projected fixed investment amount is at least TRL 10 trillion,
e) The company has at least one foreign direct investment besides the country its head office is located.

"Key Personnel" denotes the employees employed by the company established in Turkey as a legal entity having at least one of the following features;

a) Person who holds a position as; company shareholder, Board chairman, Board member, general manager, assistant general manager, company manager, assistant company manager or a similar position, who is carrying out at least one of the following duties:
1. Employed at top management or executive position of the company,
2. Direct the whole or a part of the company,
3. Audit or control the works of company auditors, administrative or technical staff of the company,
4. Recruit personnel to the company or to dismiss the existing personnel or to make proposals on these issues,

b) Person who has expertise of fundamental nature on the services, research equipment, techniques or administration of the company,

c) Regarding liaison offices, maximum one person to be equipped with a power of attorney issued by the main company abroad.

PART TWO
Special Procedures and Principles in Granting Work Permits

Employment of Key Personnel in Foreign Direct Investments with Exceptional Features

Article 5. Work Permits of key personnel to be employed in foreign direct investments of exceptional features will be granted by the Ministry.

Employment at liaison offices

Article 6. For liaison offices operating within the scope of Law No: 4875, work permits will be granted by the Ministry for maximum one duly authorized person, provided that USD 200.000.- at least have been transferred from abroad for the activities of the subject liaison office during the previous year.

Application for Work Permits Abroad

Article 7. Foreigners carrying key personnel status to be employed in foreign direct investments with exceptional features, may file their applications for work permits at the representations of the Turkish Republic in the countries they are citizens of or in the countries they reside.

The representations will convey these applications directly to the Ministry, together with their considerations if any, concerning the work permit.
Communication between the representations and the Ministry concerning work permit transactions will conducted by e-mail. The documents to accompany the application have to be submitted to the Ministry by the employer of the foreigner, within three days following the date of application latest.

Application for Work Permits within Turkey

Article 8. Foreigners carrying key personnel status to be employed in foreign direct investments with exceptional features, as well as their employers may file the work permit applications directly to the Ministry, in case the subject foreigner is residing in Turkey under legal status,

Obtaining Work Visa

Article 9. Key personnel having received work permit for being employed in foreign direct investments with exceptional features are required to apply to the representations of the Turkish Republic abroad for work visa within ninety days following the date of their receipt of the work permit and apply to the Ministry of the Interior for a residence permit within thirty days following their entry to Turkey.

Key personnel who had previously received a residence permit - with the exception of residence permits given for education in Turkey– with minimum six months period, for any reason, and have been granted a work permit within this period, are not required to obtain a work visa from the representations of the Turkish Republic abroad.

Documents to Accompany Application

Article 10. The following documents have to accompany the work permit applications of key personnel to be employed in foreign direct investments with exceptional features:

a) Information and documents certifying that the company or the branch office carries "the features of an exceptional foreign direct investment":

1. Documents certifying that the total shares owned by foreign shareholders is at least TRL 400 billion (documents such as company endorsed book records, company endorsed balance sheet, xerox copy of Trade Registry Gazette),
2. Documents certifying that the exports realized by the company or the branch office during the previous year has been at least USD 1 million (documents such as bank receipt certifying the export amount, bank letter, xerox copy of foreign currency buying note, company endorsed income statement),
3. Documents certifying that the turnover of the company or the branch office for the previous year has been minimum TRL 30 trillion (documents such as company endorsed income statement),
4. In case the company or the branch office has employed at least 250 personnel registered to the Social Security Authority (SSK) during the previous year, documents certifying the case such as SSK lists.
5. In case the company or the branch office is yet to make investments, documents certifying that the projected fixed investment amount is at least TRL 10 trillion, such as Investment Incentive Certificate, Tourism Incentive Certificate,
6. Certificate of Activity or Activity Report or letter from the officially authorized organizations of the related country certifying that the company has at least one foreign direct investment besides the country its head office is located at, and letter of assignment certifying that the subject key personnel have been assigned by the main company headquartered abroad.

b) Information and documents certifying that the foreign personnel are at key status:

1. For personnel subject to key personnel status described in Article 4, paragraph (a), documents such as xerox copy of circular of authorized signatures, xerox copy of the Trade Registry Gazette, xerox copy of resolution of Board of Directors or Board of Shareholders,
2. For personnel subject to key personnel status described in Article 4, paragraph (b), reference letter and its translation, copy of the diploma and its translation, and other information and documents on the line of work the subject personnel will be employed and their translations (e.g.: for export personnel, documents such as bank endorsed bank receipt certifying exports on country basis, bank letter, xerox copy of foreign currency buying note, company endorsed income statement),

c) For liaison offices, documents certifying that at least USD 200.000.- or its equivalent in foreign currency have been transferred from abroad for the activities (documents such as power of attorney issued to name of the person authorized for the office, bank receipt certifying the money transfer, bank letter, xerox copy of foreign currency buying note),

d) Duly filled Foreign Personnel Declaration Form (in 4 copies), which is an enclosure of the Implementation Directive for the Law on Work Permits of Foreigners, carrying the employer's stamp and signature and photograph of the foreign personnel,

e) In case the Foreign Personnel Declaration Form holds the signatures of neither the employer nor the foreign personnel; individual job contract entered by the parties or an employment document certifying the employee's acceptance of the job proposal made by the employer or its certified copy,

f) Copy of the foreign personnel's passport, not having elapsed its date of expiry, certified by a Turkish Consulate or a notary and its translation,

g) Resume of the subject foreign personnel in accordance with the "Format Resume" enclosed in the Implementation Directive for the Law on Work Permits of Foreigners,

h) Work permit petition to be issued by the employer.

Applications for Extension of Work Permits

Article 11. Extension applications for work permits of key personnel to be employed in foreign direct investments with exceptional features have to be made to the Ministry by the foreign personnel or his/her employee, by submitting the previous permit in addition to the documents designated in Article 10, paragraphs (c), (d), (e), (f) and (h) of this Directive.

Application to extend a work permit has to be made fifteen days before its date of expiry latest. Extension applications made after this time limit will be considered as initial applications by the Ministry.

Extension applications for work permits may as well be made earlier, provided that they are filed within the two-months ahead of the expiry date of the said work permit earliest.

In case a work permit is extended; the date of initiation of the extended work permit is the date of expiry of the expired work permit.

Evaluation Periods of Work Permits

Article 12. The Ministry finalizes the applications for work permits and extensions thereof made for key personnel to be employed in foreign direct investments with exceptional features and liaison offices within the scope of Article 6 of this Directive within fifteen days following the date of application to the Ministry latest, provided that the related documents are proper and complete.

In case it becomes evident that the application is short of any document, the Ministry notifies the applicant and requests the fulfilment of the missing document. In such a case, the fifteen-days evaluation period starts on the date the missing documents reaches the Ministry.

For applications made abroad, the fifteen-days evaluation period starts on the date all the documents reach the Ministry.

Applications made for key personnel to be employed in occupational training jobs in foreign direct investments with exceptional features, the fifteen-days evaluation period designated in the first paragraph above will not be in effect.

Non-execution of the Public Announcement Period 

Article 13. Article 14, paragraph (b) of Law No: 4817 will not be in effect for key foreign personnel to be employed in foreign direct investments with exceptional features.

Employment in a Job outside Occupational Education/Training

Article 14.Considerations of related authorities will not be asked for, on the occupational competence of key personnel to be employed in jobs outside their occupational education/training in foreign direct investments with exceptional features.
These persons are not subject to procedures on occupational requirements and competence and license requirements and competence stipulated in the Implementation Directive for the Law on Work Permits of Foreigners.

PART THREE
Miscellaneous Provisions

Refusal of Work Permit Applications

Article 15. While evaluating the work permit and extension applications for foreign personnel within the scope of Article 2, paragraph 2, sub-paragraphs (a) and (b) of this Directive, the Ministry takes the restrictive provisions of Law No: 4817 into consideration.

The accomplishment of an investment within Law No: 4875 does not necessarily require the granting of work permit to foreign personnel – including company shareholders.

Notification of Statistical Data

Article 16. Aiming at establishing and developing an information system regarding foreign direct investments, the Ministry notifies the statistical data concerning foreign personnel to the Undersecretariat of Treasury – General Directorate of Foreign Investments every three months.

Updating of Figures

Article 17. Values stipulated in Turkish Lira for the designation of foreign direct investment having particular features will be raised each year by the reevaluation index to be proclaimed by the Ministry of Finance.

Cases not Stipulated by the Directive

Article 18. In cases not stipulated by this Directive, provisions of Law on Work Permits of Foreigners and Implementation Directive for the Law on Work Permits of Foreigners will be in effect.

Effectiveness

Article 19.This Directive will come into effect on 6 September 2003

Enforcement

Article 20. The provisions of this Directive will be enforced by the Ministry of Labor and Social Security.

#86
             
REGULATION ON THE NOTIFICATION OF THE TECHNICAL LEGISLATION AND STANDARDS BETWEEN TURKEY AND THE EUROPEAN UNION


OJ Date: 3.4.2002  / OJ No:    24715
Date of Entry into Force: 3.5.2002
                                                                                                                                               
 
PART ONE
Aim, Scope, Legal Base, Definitions

             Aim
            Article 1- The aim of this Regulation is to provide information exchange between Turkey and the European Union on technical legislation and standards.   
 
             Scope
            Article 2- This Regulation covers the principles and the procedures for the notification of the technical legislation and standards to the European Union and for the transmission of the notifications received from the European Union to the public authorities.   
           
             Legal basis
            Article 3- This Regulation is based on Article 14 of the Law on the Preparation and Implementation of Technical Legislation on Products dated 11.07.2001 and numbered 4703.   
 
Definitions
            Article 4- For the purpose of this Regulation;   
a)     Undersecretariat shall mean the Prime Ministry Undersecretariat for Foreign Trade,
b)     Member States shall mean the European Union Member States,   
c)      Commission shall mean the Commission of the European Union,   
d)   Public Authority shall mean any public body which is legally  authorized  for preparing and implementing the legislation relating to the products, and/or any Public Body which will implement the provisions of this regulation within the context of its responsibilities,   
e)      Product shall mean all the products which are planned to be placed on the market,   
f)    Technical specification shall mean the specification contained in  a  document  and which lays down the characteristics required of a product such as levels of quality, performance, safety or dimensions, including the requirements applicable to the product as regards the name under which the product is sold, terminology, symbols, testing and test methods, packaging, marking or labelling and conformity assessment procedures and which may also cover the production methods and processes. When the agricultural and medicinal products are concerned, these production methods and processes are not required to have an effect on the product's characteristics in order to be considered a technical specification; but for other products, these should have an effect on the product's characteristics in order to be considered a technical specification,   
g)      Requirements which affect the life of a product after it has been  placed  on the market shall mean the requirements imposed on a product for the purpose of protecting, in particular, consumers or the environment, and which affects its life after it has been placed on the market, such as conditions of use, recycling, reuse or disposal, where such conditions can significantly influence the composition or nature of the product or its marketing;   
h)      Standard shall mean any voluntary document which is accepted by consensus and ratified by an authorised body; aims to provide an optimum order under the existing conditions; lays down, for common and repeated use, the characteristics, processing and production methods of a product, as well as one or more of the related terminology, symbols, packaging, marking, labelling and conformity assessment procedures aspects,   
i)        International standard shall mean a standard adopted by an international standardisation organisation and made available to the public,   
j)       European standard shall mean a standard adopted by a European standardisation body and made available to the public,   
k)     National standard shall mean a standard adopted by a national standardisation body and made available to the public;   
l)        Standards programme shall mean a work programme of a national standardisation body listing the subjects on which standardisation work is being carried out;   
m)    European standardisation bodies shall mean the bodies referred to in Annex I   
n)      National standardisation bodes shall mean the bodies referred to in Annex II;   
o)     TSE shall mean the Turkish Standards Institute,   
p)     Technical regulation shall mean any mandatory document, which lays down one or more from among the technical specifications of a product, including the administrative provisions.   
PART TWO
Technical Legislation Subject to Notification, Principles and Procedures of Notification, Standstill Period for Notification, Evaluation of the Comments about the Notification, Publication of the Notified Technical Legislation, Notifications Received from the Commission   
            Technical legislation subject to notification
            Article 5- Public authorities shall notify the following legislation, in their draft form, to the Commission through the Undersecretariat if these are prepared for the marketing or use of a product in Turkey or in a definitive part thereof :   
a)      Technical regulations,
b)      Legislation laying down the requirements which affect the life of a product after it has been placed on the market,
c)      Legislation prohibiting the manufacture importation, marketing or use of a product.
d)      Voluntary agreements to which a public authority is a contracting party and which provide, in the public interest, for compliance with technical specifications or other requirements or excluding public procurement tender specifications,
e)      Legislation which are linked to fiscal or financial measures affecting the consumption of products by encouraging compliance with technical specifications or  the requirements other than those linked to national social security systems, which affect the life of a product after it has been  placed  on the market,
f)        laws, regulations or administrative provisions of a Member State which refer either to technical specifications or to other requirements or to professional codes or codes of practice which in turn refer to technical specifications or other requirements, and compliance with which confers a presumption of conformity with the obligations imposed by the aforementioned laws, regulations or administrative provisions.   
          Technical Legislation which do not require notification
         Article 6-The technical legislation mentioned in Article 5, shall not be subject to notification if they are prepared in order to:
a)      Provide harmonization with the EU legislation,
b)     Use the safeguard clauses provided in the EU legislation,
c)      Prevent,  restrict or impose specific conditions on the the placing on the market or use of a product, by reason of a serious risk, due to the Regulation Relating to the Market Surveillance and Inspection of Products, which was approved on 13.11.2001 and published in the Official Gazette of 17.1.2002 No: 24643.
d)      Make the requested amendment in a legislation in accordance with a Commission request, and with a view to removing an obstacle to trade ,
e)      protect persons, in particular workers, when products are used, provided that such measures do not affect the products   
          Principles and Procedures of Notification
        Article 7- Notification mentioned in Article 5 shall consist of:
a)    Draft technical legislation concerned; in case that it merely transposes the full text of an international or European standard, only the information regarding the relevant standard,
b)    A statement of the grounds which make the preparation of such a technical regulation necessary, where these have not already been made clear in the draft,
c)    The text of the national legislation principally and directly concerned, should knowledge of such text be necessary to assess the implications of the draft, unless it has already been sent with a prior communication,
d)    Where appropriate, the information and documents required by the Commission.
The new text of the draft shall also be communicated as soon as possible to the Commission through the Undersecretariat where the changes made to the draft technical legislation have the effect of significantly altering its scope, shortening the timetable originally envisaged for implementation, adding specifications or requirements, or making the latter more restrictive.   
Where, in particular, the draft seeks to limit the marketing or use of a chemical substance, preparation or product on grounds of public health or of the protection of consumers or the environment, public authorities shall also forward either a summary or the references of all relevant data relating to the substance, preparation or product concerned and to known and acceptable substitutes, and communicate the anticipated effects of the measure on public health and the protection of the consumer and the environment. Where the notification is about an existing substance, it shall be accompanied by an analysis of the risk carried out as appropriate in accordance with the related legislation. In case of a new substance, analysis of the risk shall be carried out as referred to in the related Articles of the Regulation on Dangerous Chemicals published in the Official Gazette dated 11 July 1993 and numbered 21634.   
Information notified to the Commission referred to in this Article and the Article 8 shall not be kept secret unless the notifying Public authority so demands. In such a case, the Public Authority shall communicate the Undersecretariat the demand and its grounds together with the notification.   
In case that a draft technical legislation, which is in the scope of this Regulation, is also required to be notified to the Commission under another legislation, notification in the context of this Regulation can be made together with the notification foreseen in the latter. In this case, it is formally indicated within the notification that the communication also meets the notification requirement of this Regulation, and the Undersecretariat shall be informed accordingly.
             Standstill Period for Notification     
Article 8- Public authorities shall postpone the submission of the notified technical legislation for publication, and the approval of them when the voluntary agreements mentioned in Article 5(d) are concerned, for three months from the date of receipt by the Commission of the communication, in order to give an opportunity to the Commission and Member Satates to evaluate the concerned draft. However this three-month standstill shall not apply in those cases where, for urgent reasons, occasioned by serious and unforseeable circumstances, relating to the protection of public and animal health, the preservation of plants or safety, public authorities are obliged to prepare technical legislation in a very short space of time in order to enact and introduce them immediately without any consultations being possible. In this case, the notification to be made by the public authorities shall also include the reasons which warrant the urgency of the measures taken in addition to the  subjects laid down in the first paragraph of  Article 7.   
Three month standstill period stated in the first paragraph of this Article shall not apply to the drafts of the technical legislation given in the point (e) of Article 5 and to the drafts of the technical legislation prohibiting manufacture insofar as they do not impede the free movement of products.   
Where the Commission requires the three month standstill period, stated in the first paragraph of this Article, to be extended to six months, this shall be communicated to the public authorities by the Undersecretariat.
Evaluation of the Comments about the Notification
Article 9- Comments received from the Commission and the Member States on the notified drafts shall be communicated to the public authorities by the Undersecretariat. Public authorities shall take such comments into account as far as possible in the subsequent preparation of the draft. The final version of the draft shall be communicated as soon as possible to the Commission through the Undersecretariat.
 
Publication of the Notified Technical Legislation
Article 10- While Public authorities publish a technical legislation, which is subject to notification due to this Regulation, there shall be a reference to this Regulation in the concerned legislation and, in the text of the agreement when the voluntary agreements mentioned in Article 5(d) are concerned. Concerned reference shall indicate that the notification  required  by this Regulation was performed.

Notifications Received from the Commission
Article 11– Notifications concerning the draft technical legislation of the Member States to be sent from the Commission to Turkey within the context of the rules[1] mentioned in Article 16, shall be communicated to the relevant Public authorities by the Undersecretariat. Public authorities shall submit their possible comments on the  draft concerned to the Commission through the Undersecretariat, within a period of time determined by the Undersecretariat.
Comments of the Public authorities on the draft technical legislation, which is  communicated  by the Commission and which is within the scope of  the point (e) of Article 5 may concern  only the provisions which may hinder trade, and not the fiscal and the financial aspects of the draft.   
Public authorities may seek expert advice from physical or legal persons in the private sector during the preparation of comments about the notifications of the member States, which were received from the Commission through the Undersecretariat.  But in case that the notifying Member State requires the information within the notification to be kept secret; the Public authorities shall take all necessary precautions while seeking expert advice from physical or legal persons in the private sector.   
PART THREE
Notification of Standards   
Information exchange concerning the standards programme
Article 12- TSE shall inform the Commission and the standardisation bodies referred to in Annexes I and II of the new subjects for which it has decided, by including them in its standards programme, to prepare a new standard or amend or revise the existing standard. This provision shall not be applied to the harmonization  activities of an identical or equivalent transposition of an international or European standard.   
The information referred to in paragraph 1 shall indicate, in particular, whether the standard concerned will transpose an international standard without being the equivalent; will be a new national standard, or  will amend a national standard.   
Upon the Commission's request, TSE shall communicate the Commission all or part of the standards programme .   
TSE shall grant the bodies referred to in Annex II the right to be involved passively as an observer or actively in its  planned activities,
TSE shall not object to a subject for standardisation in its work programme being discussed at European level in accordance with the rules laid down by the European standardisation bodies and shall undertake no action which may prejudice a decision in this regard.   
Notification of Standards
            Article 13- TSE shall, upon request, shall send all draft standards to the standardisation bodies referred to in Annexes I and II, and the Commission. In case that the standardisation bodies referred to in Annexes I and II, and/or the Commissionmakes comments about the concerned standards, TSE shall keep the bodies concerned and the Commission of the action taken on any comments they have made relating to drafts.
             TSE shall publish the draft standards in such a way that comments may also be obtained from parties established in Member States.
             Standardization Activities
            Article 14- TSE, during the preparation of a European standard or after its approval, shall not take any action which could prejudice the harmonisation intended and shall not publish in the field in question a new or revised national standard which is not completely in line with an existing European standard. This provision shall not apply to the work of TSE undertaken at the request of the public authorities to draw up technical specifications or a standard for specific products for the purpose of enacting a technical regulation for such products. However, the draft of this technical regulation shall be communicated by the public authority to the Commission through the Undersecretariat in accordance with Articles 5 and 7 of this Regulation.   
TSE may not recognize, approve or use a standard, by making a reference to it, which was adopted in breach of Articles 12 and 13 of this Regulation.   
PART FOUR
Miscellaneous Provisions   
             Preparation of the Notifications
            Article 15- All draft texts, information and documents, which will be sent to the Undersecretariat by the public authorities in accordance with the notification procedure under this Regulation, shall be prepared in Turkish and English. 
             Related EU Legislation
Article 16- This Regulation is prepared taking into consideration of the Directive 98/34/EC of the European Parliament and of the Council of  22 June 1998 laying down a procedure for the provision of information in the field of technical standards and regulations, which repealed and consolidated Council Directive 83/189/EEC of 23 March 1983 laying down a procedure for the provision of information in the field of technical standards and regulations and its amendments; and of the adaptation instructions about Directive 83/189/EEC, except the one leaving the Articles on standards out of the scope of harmonization, given in Part XIX of the Annex II of the EC-Turkey Association Council Decision No. 2/97.   
 
Authorization
Article 17- The Undersecretariat is authorized to issue Communiques, lay down the principles and the procedures concerning the preparation and transmission of the notifications and comments, to issue necessary instructions, to make the necessary changes and take the necessary measures in each stage of notifications laid down in this Regulation.   
                                                             
Enforcement
Article 18- This Regulation shall be enforced one month after its publication.   
 
Implementation
Article 19- This Regulation shall be enforced by the Minister whom the Undersecretariat for Foreign Trade is connected with.   
ANNEX:1
EUROPEAN STANDARDISATION BODIES:
CEN
European Committee for Standardisation
 
Cenelec
European Committee for Electrotechnical Standardisation   
 
ETSI
European Telecommunications Standards Institute     

ANNEX:2
NATIONAL STANDARDISATION BODIES   

 
1.        BELGIUM
IBN/BIN
Institut belge de normalisation
Belgisch Instituut voor Normalisatie
CEB/BEC-Comité électrotechnique belge
Belgisch Electrotechnisch Comité   
 
2. DENMARK
DS
Dansk Standard
NTA
Telestyrelsen, National Telecom Agency   
 
3. GERMANY
DIN
Deutsches Institut für Normung e.V.
DKE
Deutsche Electrotechnische Kommission im DIN und VDE

4.        GREECE
ELOT
Eλληνιχóς Oργανισμός Tυπoπoίηoης   
 
5.        SPAIN
AENOR
Asociación Espanola de Normalización y Certificación   

 
6.        FRENCH
AFNOR
Association française de normalisation
UTE
Union technique de l'électricité-Bureau de normalisation auprés de l'AFNOR   

 
7.        IRELAND
NSAI
National Standards Authority of Ireland
ETCI
Electrotechnical Council of Ireland   

 
8.        ITALY
UNI (1)
Ente nazionale italiano di unificazione
CEI (1)
Comitato elettrotecnico italiano
(1) İtalyan Ulusal Standardizasyon Kuruluşları UNI ve CEI, telekomünikasyon konusundaki çalışmalarını İtalya'daki CONCIT Enstitüsüne devretmiştir.

9.        LUXEMBOURG
ITM
Inspection du travail et des mines
SEE-Service de l'énergie de l'État   

 
10.     NETHERLANDS
NNI
Nederlands Normalisatie Instituut
NEC
Nederlands Electrotechnisch Comité   

 
11. AUSTRIA
ON
Österreichisches Normungsinstitut
ÖVE
Österreichischer Verband für Elektrotechnik

 
12. PORTUGAL
IPQ
Instituto Português da Qualidade   

 
13.     UNITED KINGDOM
BSI
British Standards Institution
BEC
British Electrotechnical Committee   

 
14.     FINLAND
SFS
Suomen Standardisoimisliitto SFS ry
Finlands Standardiseringförbund SFS rf
THK/TFC
Telehallintokeskus
Teleförvaltningscentralen
SESKO
Suomen Sähköteknillinen Standardisoimisyhdistys SESKO ry
Finlands Elektrotekniska Standardiseringförening SESKO rf   

 
15.     SWEDEN
SIS
Standardiseringen i Sverige
SEK
Svenska elektriska kommissionen
ITS
Informationstekniska standardiseringen   


Last update: 3.6.2005
#87
THE LAW ON THE PREPARATION AND IMPLEMENTATION OF THE TECHNICAL LEGISLATION ON PRODUCTS

Law Number: 4703

Publication Date in Turkish Official Gazette: 11 July 2001
Number of the Official Gazette: 24459
Entry into Force: 11 January 2002



THE LAW ON THE PREPARATION AND IMPLEMENTATION OF THE TECHNICAL LEGISLATION ON PRODUCTS

PART ONE

Objective, Scope and Definitions

Objective

Article 1- The objective of this Law is to lay down the principles and the procedures for the placing on the market of the products, conformity assessment, market surveillance and inspection and the notifications relating to these arrangements.

Scope

Article 2- This Law covers; the conditions of placing on the market of the products; the obligations of the producers and the distributors; conformity assessment bodies; notified bodies; market surveillance and inspection; prohibition of the placing on the market of the products, withdrawal and destruction of the marketed products and the notifications relating to these arrangements.

Definitions

Article 3- For the purposes of this Law;

a) Undersecretariat shall mean the Undersecretariat for Foreign Trade,

b) Commission shall mean the Commission of the European Union,

c) product shall mean any product, which is intended for being placed on the market,

d) last product shall mean the product, which was last put into market, among those products subject to the same certificate stating the conformity with the relevant technical regulation,

e) safe product shall mean any product which, under normal conditions of use, does not present any risk or presents only risks considered as acceptable and brings a high level of protection with respect to the essential requirements,

f) essential requirements shall mean the minimum safety conditions which the product shall present regarding the level of protection for the health of persons, safety of persons and their properties, life and health of animals and plants, environment and the consumer,

g) producer shall mean any real or legal person who manufactures, reconditions the product or presents himself as the manufacturer by affixing to the product his name, trade mark or other distinctive mark; when the manufacturer is established abroad, the authorised representative and/or the importer; and also other real or legal persons in the supply chain, in so far as their activities may affect the safety properties of a product placed on the market,

h) distributor shall mean any real or legal person in the supply chain whose activity does not affect the safety properties of a product,

i) standard shall mean any voluntary document which is accepted by consensus and ratified by an authorised body; aims to provide an optimum order under the existing conditions; lays down, for common and repeated use, the characteristics, processing and production methods of a product, as well as one or more of the related terminology, symbols, packaging, marking, labelling and conformity assessment procedures aspects,

i) technical regulation shall mean any mandatory document which lays down the characteristics or processing and production methods of a product, including the administrative provisions, as well as one or more of the related terminology, symbols, packaging, marking, labelling and the conformity assessment procedures aspects,

j) placing on the market shall mean the action of making a product available on the market, for payment or free of charge, with a view to supply or use,

k) Public authority shall mean any public body which is legally authorized for preparing and implementing the legislation relating to the products, and for implementing the provisions of this Law for the products under its responsibility,

l) conformity assessment shall mean any procedure concerning the testing, inspection and/or certification of a product's conformity with the relevant technical regulation,

m) conformity assessment body shall mean any private or public body which carry out the conformity assessment procedures by testing, inspecting and/or certifying a product according to the relevant technical regulation,

n) notified body shall mean any public or private conformity assessment body which is designated by the related Public authority from among the testing, inspection and/or certification bodies, in accordance with the principles laid down in this Law and the relevant technical regulation, to carry out conformity assessment procedures laid down in one or more technical regulations,

o) conformity mark shall mean the mark which indicates that the product is in conformity with the requirements in the relevant technical regulation and the product has been subject to all the required conformity assessment procedures,

r) module shall mean each of the ways that describes the conformity assessment procedures to be followed, in relation to the hazards involved in the product, according to the relevant legislation,

s) market surveillance and inspection shall mean the action which is carried out by the public authorities in order to check or have it checked whether the product is in conformity with the relevant technical regulation and with the requirements related to safety at the stage of placing on the market or distribution of the product concerned or when it is on market,

t) code of good practice shall mean any specific practical principles related to the health and safety in the framework of the existing technological level and scientific criteria in the sector concerned.

PART TWO

Technical regulations relating to the products, Obligations of the producers and distributors relating to the placing the products on the market

Technical regulations relating to the products

Article 4- Technical regulations on the products shall be prepared by the public authorities.

Obligations of the producers and distributors relating to the placing the products on the market

Article 5- The new products to be placed on the market shall be in conformity with the relevant technical regulations. This provision shall also apply to used products which are planned to be placed on the market after being subject to a change and to old and used products which are imported from the countries except the member states of European Union.

The Council of Ministers has the authority to arrange or to set a limit and to provide exception to the provisions laid down in the first paragraph.

Producers shall place only safe products on the market. Products in compliance with the relevant technical regulations, are assumed as safe. In the absence of a relevant technical regulation, safety of a product shall be assessed in accordance with the national or international standards and in the absence of these, with the codes of good practice in the sector concerned or with the state of science and technology or with the safety which consumers may reasonably expect.

The producer shall not be held responsible, if he proves that he did not place the unsafe product on the market or the unsafety of the product results from the compliance with the technical regulation.

For a product to be accepted as safe, it shall ensure a high level of protection in respect of the essential requirements, taking into account the characteristics of the product, including its composition, packaging, instructions for assembly and maintenance; the effects it will have on other products, where its use with other products is foreseen; the instructions concerning its placing on the market, labelling, use and disposal and other information provided by the producer, the categories of consumers at risk using the product.

The possibility of obtaining higher levels of safety or the availability of other products presenting a lesser degree of risk shall not, unless stated in the relevant technical regulation, constitute grounds for considering a product to be unsafe.

Producers shall take appropriate measures in order to provide consumers with the necessary information regarding the risks in the product that can not be perceived without adequate warning throughout the normal or reasonably foreseeable period of its use; to mark the product in such a way that its characteristics can be identified; if necessary, to sample test of marketed products, to investigate complaints and to keep distributors informed of the results of such monitoring, including withdrawal from the market and disposal of the products in question to avoid these risks.

Producers shall keep all the documents required in the relevant technical regulations, for the period stated in the technical regulation, and if no period is mentioned in the technical regulation, for the period determined by the public authority from the date the last product has been manufactured or imported and to submit, if demanded, these documents to the Public authorities.

Distributors, within the limits of the information they have, shall not supply products which they know as unsafe. Within the limits of their respective activities, they shall inform the related people about products' risks and the measures necessary to avoid these risks. When it is impossible to determine the producer, the distributor who does not inform the Public authority of the identity of the producer and/or of the person from whom he supplied the product shall be assumed as the producer.

Distortion or imitation and misusing of the conformity certificate and/or mark is prohibited.

PART THREE

Provisions relating to the conformity assessment bodies and notified bodies; Activities, branches and agents of the notified bodies, and the obligations of the conformity assessment bodies and the notified bodies

Provisions relating to the conformity assessment bodies

Article 6- The minimum requirements relating to the technical competence of the conformity assessment bodies shall be laid down in the relevant technical regulations and/or in the regulations relating to the principles and procedures of the implementation of this Law.

Conformity assessment bodies shall be liable for their activities within the context of a technical regulation to the public authority which implements that technical regulation.

Provisions relating to the notified bodies

Article 7- Within the framework of the related technical regulations and/or this Law and the regulations relating to the principles and procedures of the implementation of this Law, the Public authorities shall designate any number, they consider necessary, of testing, inspection and/or certification bodies established in Turkey to carry out the conformity assessment procedures, laid down in one or more technical regulations.

The name and address of the designated testing, inspection and/or certification body and the modules through which and the products for which it will carry out the conformity assessment shall be notified to the Commission. This body shall gain the status of notified body following the publication of these information together with the identification number given by the Commission in the Official Gazette.

Activities, branches and agents of the notified bodies

Article 8- The certificates to be issued as a result of the activities of the notified bodies' branches or agents established in Turkey and/or abroad shall be granted by the notified bodies.

The notified bodies may subcontract with the other bodies to carry out a part of their activities for which they have been designated, on behalf of themselves. The subcontracting notified body remains in all cases responsible for all the activities covered by the notification and the certificates to be given as a result of the activities of the subcontractor shall be granted by the notified body.

Obligations of the conformity assessment bodies and the notified bodies

Article 9- The conformity assessment bodies and the notified bodies shall carry out their conformity assessment services in compliance with the requirements of the relevant technical regulations and/or this Law and the regulations relating to the principles and procedures of the implementation of this Law in an independent and impartial manner.

When it is found that conformity assessment bodies and the notified bodies no longer comply with the requirements of the relevant technical regulation and/or this Law and the regulations relating to the principles and procedures of the implementation of this Law or that it no longer performs its obligations, public authority shall temporarily cease that body's activities in the context of the related technical regulation.

In case that the concerned body fails to meet the requirements or perform the obligations within the period stated in the technical regulation, and, if not stated, within the period determined by the public authority, the public authority shall cease that conformity assessment body's activities and shall withdraw the status of that notified body, in the context of the related technical regulation.

The public authority shall publish the decisions of suspension and withdrawal of the status of the notified body in the Official Gazette and notify the Commission.

The conformity assessment bodies and the notified bodies shall keep any information, records and documents concerning their activities for the period stated in the technical regulation, and if no period is mentioned in the technical regulation, for the period determined by the public authority and to submit, if demanded, these documents to the public authorities. The conformity assessment bodies and the notified bodies whose activities have been suspended by the public authorities or whose activities have come to an end by their own consent, shall deliver any information, records and documents concerning the conformity assessment activities realized within the period of their activity to the public authority to be transferred to other conformity assessment bodies or notified bodies operating in the same field. However, the responsibility of the conformity assessment bodies and the notified bodies for the information, records and documents mentioned, continues for the period stated in the technical regulation, and if no period is mentioned in the technical regulation, for the period determined by the public authority.

PART FOUR

Market surveillance and inspection, Prohibition of the placing on the market of the product, Withdrawal and destruction of the product placed on the market

Market surveillance and inspection

Article 10- Market surveillance and inspection shall be carried out in accordance with the procedures and principles laid down in the relevant technical regulations and/or this Law and the regulations relating to the implementation of this Law. The required administrative arrangements shall be determined by the Public authorities.

For the market surveillance and inspection, the public authorities, may use, when deemed necessary, the facilities of the testing, inspection and/or certification bodies, which have not been involved in the conformity assessment procedures of the product subject to market surveillance and inspection. The final decision, however, belongs to the public authorities. In case that the facilities of the testing, inspection and/or certification bodies are used and the product is found not to be safe, the producer shall pay the costs of testing and inspection.

Names of the public authorities responsible for market surveillance and inspection shall be notified to the Commission through the Undersecretariat.

Prohibition of the placing on the market of products, withdrawal and destruction of the product placed on the market

Article 11- In case that there are definite indications that a product is unsafe, even if its conformity with the relevant technical regulation has been certified, the public authority shall temporarily prohibit the placing on the market of the product concerned, during the period required for necessary checks.

If the product concerned is found to be unsafe after the control, the public authority shall take the measures below, on condition that the expenses be covered by the producer:

a) prohibition of the placing on the market of the product,

b) withdrawal of the marketed products,

c) whole or partial disposal of the products in case where it is impossible to render them safe,

d) announcement of the necessary information relating to the measures laid down in the paragraphs (a), (b) and (c) to the persons at risk by publishing this information in two daily newspapers and two television channels having nationwide distribution and reach.

If the persons at risk can be informed by local televisions and newspapers, this announcement shall be done by means of these local organisations. In case where the persons at risk can be identified individually, the announcement shall be done by means of informing these persons directly.

Measures taken by the Public authorities within the scope of this Article shall be notified to the Commission, where necessary.

PART SIX

Miscellaneous Provisions

Penalty provisions

Article 12- For the purpose of this Law;

a) for the producers who act contrary to the first paragraph of the Article 5, 2 billion Turkish Liras,

b) for the producers who act contrary to the third paragraph of the Article 5, 10 billion Turkish Liras,

c) for the producers who act contrary to the seventh paragraph of the Article 5, 2 billion Turkish Liras,

d) for the producers who act contrary to the eighth paragraph of the Article 5, 2 billion Turkish Liras,

e) for the suppliers who act contrary to the ninth paragraph of the Article 5, 1 billion Turkish Liras,

f) for the producers who act contrary to the tenth paragraph of the Article 5, 5 billion Turkish Liras,

g) for the conformity assessment bodies and notified bodies which act contrary to the first paragraph of the Article 9, 25 billion Turkish Liras,

h) for the conformity assessment bodies and notified bodies which act contrary to the fifth paragraph of the Article 10, 5 billion Turkish Liras

shall be applied as penalty.

In case that the act is repeated in the same year, the penalty shall be doubled for each infringement.

The Council of Ministers has the authority to increase the penalties foreseen in this Law by 100% or decrease by 50%, on the basis of the amount of the penalties calculated in respect of the Additional Article 2 of the Turkish Law on Penalties.

The penalties laid down in this Law shall apply only where no penalties are foreseen for the same act in other Laws.

Authorization and prescription for penalty

Article 13- The penalties imposed in this Law shall be applied by the Public authorities and shall be paid to tax offices within thirty days from the date of notification. Objections against these penalties can be brought before the relevant administrative court within thirty days from the date of notification. Objections, however, do not suspend the collection of the penalties.

The penalties applied under this Law are collected in accordance with the provisions of the "Law Regarding the Procedures of Collecting the Public Receivables" No. 6183.

The prescription period for the penalties laid down in this Law is five years from the date that the violation took place, and it is one year from the date that the Public authorities were informed of the violation. In case that a procedure is initiated with a view to control and inspect the activities of the producers, the suppliers, the conformity assessment bodies or the notified bodies, the prescription period shall expire.

Regulations

Article 14- For the purpose of this Law;

a) The principles and the procedures concerning the notifications to the Commission, European Union Member States and other bodies of the European Union shall be laid down in the regulations to be prepared by the Undersecretariat by taking into account the opinions of the Public authorities.

b) The principles and the procedures regarding market surveillance and inspection, conformity assessment bodies and notified bodies and other issues shall be laid down in the regulations to be issued by the Council of Ministers.

Article 15- Article 19 of the "Law Relating to The Consumer Protection" No. 4077 is hereby amended as follows:

"Inspection of the Services

Article 19- Services supplied to the consumer shall not cause any damage to the safety of human life and properties, as well as the environment, and shall be in compliance with the relevant legislation or standard, and in the absence of these, with the technical specifications laid down. The Ministry is responsible for carrying or having carried the inspections according to these principles."

Entry into Force

Article 16 – This Law shall be put into force after six months from the date of publication.

Implementation

Article 17 – This Law shall be enforced by the Council of Ministers
#88
FOREIGN DIRECT INVESTMENT ACT

Law No. 4875
Date of Endorsement : 5.6.2003

Purpose and Scope
Article 1 - The objective of this Act is to encourage foreign direct investments; to protect the rights of foreign investors; to define investment and investor in line with international standards; to transform the current screening and approval system into a notification based system for foreign direct investments; and thus regulate the principles to increase foreign direct investments through established policies. This Act comprises the treatments to be applied to foreign direct investments.

Definitions
Article 2 - The terms used in this act shall have the following meanings:
a) Foreign Investor:
1) Real persons residing abroad possessing foreign nationality and Turkish citizens residing abroad, and
2) Foreign legal entities established under the laws of foreign countries and international institutions, that effect foreign direct investments in Turkey,

b) Foreign Direct Investment:
- Capital in cash in the form of convertible currency purchased and sold by the Central Bank of Turkey, - Stocks and bonds (other than Treasury bonds) and other forms of capital in kind participation in the companies, - Machinery and equipment, - Industrial and intellectual properties, that are acquired from abroad, or;

i) Establishment of a new company or a branch office,
ii) Participation in an already existing company either by acquisition of shares except through stock exchanges or by acquisitions of minimum 10% of shares or an equal proportion of voting rights through stock exchanges, by means of; - Reinvested earnings, financial claims, or any other investment related rights of financial value; and - Commercial rights for to the exploration and extraction of natural resources, that are acquired in Turkey, by foreign investors.

c) Undersecretariat: The Undersecretariat of Treasury.

Principles of Foreign Direct Investments

Article 3 –
a) Freedom to invest and national treatment:
Unless there are no international agreements or special legal provisions to the contrary;
1- International investors are free to make direct investments in Turkey,
2- International and Turkish investors are subject to equal treatment. 

b) Expropriation and Nationalization;
Foreign direct investments, in accordance with current legislation, may not be expropriated or nationalized except for a public propose upon prompt, adequate as well as effective compensation.

c) Transfers;
Foreign investors may freely transfer profits, dividends, proceeds from the sale or liquidation of all or any part of an investment, proceeds derives from their commercial activities as well as payments under licence, management agreement, technical assistance agreements and repayments of foreign credit principal and interest through banks and private finance institutions.

d) Acquisition of an immovable;
Foreign investors may freely acquire of an immovable or have limited rights in rem through a legal entity incorporated under Turkish Law, that foreign investors may only acquire of an immovable where Turkish citizens have right to acquire of an immovable.

e) Settlement of disputes;
For settlement of disputes arising from investment agreements subject to private law and disputes arising from exclusive public service provisions and concession agreements made between foreign investors and the Turkish State, in addition to authorized local courts, the parties are entitled to apply to national or international arbitration or other means of dispute settlement channels, provided that the conditions in the related regulations are fulfilled and the parties agree thereon.

f) Assessment of the value of capital in kind;
The capital in kind is valued within the regulations of Turkish Commercial Law. However, the shares of companies residing abroad will be accepted as foreign capital share of foreign legal entities and the values determined by the courts of the home country, or other relevant authorities in the home country, or any other international credit rating agency's valuations will be accepted while adding to Turkish company as capital in kind.

g) Employment of foreign personnel;
Working permits for foreign personnel to be employed in companies, branch offices and organizations to be established within the scope of this Law will be granted by the Ministry of Labour and Social Security.

Other principles and procedures of particular feature that will specify which foreign investor companies and organizations are deemed to be within the scope of this application and the definitions of key foreign personnel to be employed and their working permits will be regularized by a directive to be jointly prepared by Undersecretariat of the Treasury and the Ministry of Labour and Social Security in accordance with the provisions of Article 23 of Law 4817 dated 27 February 2003 on Working Permits for Foreign Personnel.

Provisions stipulated in Article 14, paragraph 1, sub-paragraph (b) of Law 4817 will not be applicable to foreign personnel to be employed within this framework. The conditions under which the provisions stipulated in paragraph 1 of Article 13 of Law 4817 will be applied to key foreign personnel employed, will be specified in the directive to be prepared.

h) Liaison offices;
The Undersecretariat may grant permission to foreign legal entities in order to open a liaison office in Turkey provided that they shall not engage in any other commercial activities.

Determination of policies and information requests

Article 4 -  Taking into account the development plans, annual programs, general economic status of the country, trends in international investments and the opinions of related public institutions and private sector professional organizations; the Undersecretariat is authorized to establish the general framework of policies relating to foreign direct investment, by taking into account general economic conditions, annual welfare programs, and its aims as well as tendencies occuring globally in international foreign direct investment. The consent of the Undersecretariat is necessary for any amendments to be made in the laws and regulations in force concerning foreign direct investments and for any legislative drafts thereto.

The Undersecretariat, aiming at establishing and developing an information system on foreign direct investments, is authorized to request statistical data related to investments from all public establishments and authorities and professional organizations of the private sector.

Foreign investors will submit the statistical data concerning their investments to the Undersecretariat, in accordance with the procedures and principles stipulated in the Directive to be prepared by the Undersecretariat. The subject data, except for statistical purposes cannot be used as any means of proof.

Miscellaneous Provisions

Article 5 – 
a) Existing with foreign investor companies;
All companies established pursuant to the Law No: 6224 dated 18 Jan. 1954 shall be subject to this Law, reserving their granted rights.
b) Directive;
The application procedures of this Law will be regulated by a Directive to be prepared by the Undersecretariat within one month following the publication of this Law.
c) Repealed Provisions; Law for the Encouragement of Foreign Capital with No: 6224 dated 18 Jan. 1954 is repealed. Any references made to Law No: 6224 in the laws and regulations are considered as made to this Law.
d) "Amendmends on the provisions of this Law are to be regularized only by adding provisions to this Law or by affecting revisions thereto".

Provisional Article 1 –  The provisions of the decrees, communiqués and circulars, in effect, which are in conformity with this Law, shall remain to be in force until new regulations to regularize the implementation of this Law take effect.

Effectivity

Article 6 –  This Law shall come into force on the date of its publication.

Enforcement

Article 7 –  The provisions of this Law will be enforced by the Council of Ministers.
#89
LAW ON AMENDMENTS TO BE MADE IN TURKISH COMMERCIAL CODE, PROCEDURAL TAX LAW, STAMP DUTY LAW, LABOUR LAW AND SOCIAL SECURITY LAW

Law No. 4884
Date of Endorsement: 11.06.2003

ARTICLE 1- First paragraph of Article 69 of Turkish Commercial Code No: 6762 dated 29/06/1956 has been amended to read as follows: At the establishment stage of a company, the company books designated in Paragraph1 of Article 66 have to be presented to the trade registry office functioning at the location of the commercial enterprise headquarters or the notary, by the entrepreneur, before using. These books will be endorsed and signed so as to enclose the data stipulated in the provisions regularizing the endorsement of books in the Tax Procedural Law No: 213. Trade registry officer or the notary will inscribe the number of pages constituting each book on its first page and certify thereof with official stamp and his signature. The kind and number of the books/ledgers endorsed by notaries and the names of their owners have to be notified to the related trade registry office within seven days latest. Company books/ledgers for the subsequent year and other books/ledgers will be endorsed according to the provisions regularizing the endorsement of books in the Procedural Tax Law No: 213.

ARTICLE 2- Article 273 of Law 6762 has been amended to read as below: Article 273 – Establishment of joint stock companies to engage in activities that will be determined and announced by the Ministry of Industry and Commerce are subject to the permit of the Ministry. Amendments to the articles of associations of such companies shall also be subject to the approval of the Ministry. Establishment of other joint stock companies and amendments to the articles of association of these are not subject to permit of the Ministry.

ARTICLE 3 - Article 386 of Law No: 6762 and its title has been amended to read as follows: 2. Announcement and notification: Article 386 – In case the shareholders meeting has to be summoned so as to amend the articles of association; the amended text has to be announced along with the original text and the concerned persons have to be notified in accordance with Article 368.

ARTICLE 4 - First paragraph of Article 510 of Law No: 6762 has been amended as below and the third paragraph of the same article has been repealed: Managers will apply for registration at the trade registry office functioning at the location of the company headquarters, in accordance with the provisions of Article 31.

ARTICLE 5 - First paragraph of Article 509 and Article 514 (totally) of Law No: 6762 has been repealed.

ARTICLE 6 – Subparagraph 1 of first paragraph of Article 168 of Procedural Tax Law No: 213 dated 04/01/1961 has been amended to read as: 1. Notification of initiation of operation for real persons will be served within ten days following the date of initiation of operation by themselves or by attorneys who are licensed in accordance with Attorneys Law No: 1136 or by members of professions authorized in accordance with Law No: 3568 to the related tax office. Notification of initiation of operation of companies will be served to the related tax office within ten days following the date of initiation of operation by commercial registrars. Notifications of companies including notifications for abandoning business or notifications of changes, except notification of initiation of operation will be served to the related tax office by the taxpayer within one month following the occurrence of the event being notified.

ARTICLE 7 – The paragraph below has been supplemented to Article 223 of Law No: 213, to read as: At the establishment stage of joint stock companies and limited liability companies, the company books will be endorsed by the commercial registrar functioning at the location of the company headquarters or a notary.

ARTICLE 8 - First sentence of first paragraph of Article 224 of Law No: 213 has been amended to read as: Certification annotations to be made by commercial registrars at the establishment stage of joint stock companies and limited liability companies and certification annotations to be made by notaries will be inscribed on the first page of the books and will contain the following information.

ARTICLE 9 - Paragraph (a) of Article 22 of the Stamp Duty Law No: 488 dated 01/07/1964 has been amended to read as: a) Within three months following the registration of the articles of association of joint stock companies, partnerships limited by shares and limited liability companies or the resolutions regarding the extension of periods of such,

ARTICLE 10 - The following paragraph has been supplemented, to succeed the second paragraph into Article 3 of Labor Law No: 4857 dated 22/05/2003 to read as: However, registration of companies shall be made as based on the documents sent by the trade registry offices, and these documents will be sent to the related regional directorate of Ministry of Labour and Social security by the related trade registry office in one month time.

ARTICLE 11 - The following paragraph has been supplemented to succeed the first paragraph of Article 8 of Social Security Law No: 506 dated 17/07/1964 to read as: Notifications served by companies at company establishment stage, declaring the initiation date of employing insured personnel and the number of such to trade registry offices will be
sent to the related department of the Authority by trade registry offices within ten days and this notification will be deemed as served to the Authority by the employer. In case the notification is not sent to the Authority in due time, the related trade registry office will be charged in accordance with Paragraph (a) of Article 140 of this Law.

ARTICLE 12 - The following paragraph has been supplemented to succeed the first paragraph of Article 153 of Law No: 213 to read as: Trade registry offices will send one copy of the application documents of the establishments that are subject to corporate tax and apply for registration in compliance with Article 30 of Turkish Commercial Code, to the related tax office. Thus, obligation of the taxpayers to notify their initiation of operation is regarded as fulfilled. Procedural penalty provisions on late notification will be applied to trade registrars who do not fulfill their notification obligation on time.

ARTICLE 13 – This Law comes into effect on the date of its publication.

ARTICLE 14 – The provisions of this law will be enforced by the Council of Ministers.
#90
ACT ON THE CONSTITUTION AND FUNCTIONS OF THE DISTRICT ADMINISTRATIVE COURTS, ADMINISTRATIVE COURTS AND TAX COURTS


Act No                               : 2576
Date of Enactment           : 06.01.1982
Date of Promulgation
in Turkish Official Gazette      : 20.01.1982 No: 17580
Collection of Acts            : 5 Volume: 21, page: 139
Translated into English  : Asst. Prof. Dr. Kerem ALTIPARMAK




ACT ON THE CONSTITUTION AND FUNCTIONS OF THE DISTRICT ADMINISTRATIVE COURTS, ADMINISTRATIVE COURTS AND TAX COURTS


Definition

Section 1.

The district administrative courts, administrative courts and tax courts are independent courts with general jurisdiction, assigned to carry out the functions stated in the present Act.



Constitution

Section 2.

1. The district administrative courts, administrative courts and tax courts shall be constituted and their jurisdiction as to venue be determined by the Ministry of Justice, considering the geographical position of regions and the workload.

2. The ministries of Internal Affairs, Finance and Customs shall be consulted on the constitution of the district administrative courts, administrative courts and tax courts and the determination of their jurisdiction as to venue.

3. The Supreme Council of Judges and Public Prosecutors, upon the request of the Ministry of Justice and consulting the Ministries of Internal Affairs, Finance and Customs, shall decide on the abolition of these courts and on the change of their jurisdiction as to venue.

4. If there are more than one administrative and tax court at the same judicial district, their division of labor shall be arranged by the Supreme Council of Judges and Public Prosecutors.

5. Decisions on the constitution, abolishment of these courts and decisions with regard to the change of their jurisdiction as to venue shall be promulgated in the Official Gazette.



The Composition of the District Administrative Courts

Section 3.

1. The District Administrative Court shall consist of the president of the district administrative court and two members.

2. (Repealed: 8.6.2000- 4577/s. 1)

3. (Amended: 8.6.2000- 4577/s. 1) The presidents and members of the district administrative courts shall be appointed by the Supreme Council of Judges and Public Prosecutors. When the president is absent due to legal reasons, the office of president shall be assumed by the highest-ranking member, whereas the absence of a member due to the same reasons shall be filled by a judge from an administrative or tax court in the district, following the ranking order. These courts may sit as more than one board, when needed. When the president of the district administrative court does not attend a session, the highest-ranking member shall preside over the session. The composition of these boards and division of labor between them shall be determined by the Supreme Council of Judges and Public Prosecutors.

4. Members of the Council of State, upon their request, may be appointed as the president of the district administrative courts of Ankara, İstanbul and İzmir by the Supreme Council of Judges and Public Prosecutors. Those who are appointed in this way shall keep their title to the membership of the Council of State, as well as degrees, salaries, allowances and all other rights relating to their status. Their allowances and salaries and all other financial and social rights shall continue to be paid from the budget of the Council of State. 

Composition of the Administrative and Tax Courts

Section 4.

The administrative and tax courts shall consist of a president and sufficient number of members. The board of the court shall consist of the president and two members. In the absence of the president, the highest-ranking member shall replace the president.



Functions of the Administrative Courts

Section 5.

1. (Amended: 24/2/1988-3410/s. 1) The administrative courts shall resolve the following actions, except the ones falling within the subject-matter jurisdiction of the tax courts and actions that will be reviewed by the Council of State as a first instance court:

a)     annulment actions,

b)     full remedy actions,

c)      (Amended: 8/6/2000-4577/s. 2) actions relating to disputes arising from administrative contracts signed to carry out public services except disputes arising from conditions and contracts under which concessions are granted and for which arbitration has been suggested,

d)     functions allocated by the law.

2. The administrative courts shall also review actions that are stated to be in the jurisdiction of the Council of State pursuant to specific Acts which have been allocated to the administrative court by the Procedure of Administrative Justice Act.



Functions of the Tax Courts

Section 6. (Amended: 24/2/1988-3410/s. 2)

The tax courts shall resolve

a)     actions relating to the general budget; to the taxes, fees, duties and other similar financial obligations that belong to the provinces, municipalities and villages; to the increases and penalties concerning these obligations as well as actions relating to tariffs,

b)     actions relating to the application of the Act on the Procedure of Public Claims' Collection to the subjects stated in paragraph (a),

c)      other matters designated by the law.



Actions Resolved by a Single Judge

Section 7.

1. (Amended: 8/6/2000-4577/s. 3)

a)     actions brought against administrative acts whose subject contain a certain amount of money,

b)     full remedy actions

the disputed amount of which does not exceed one billion Turkish Liras, shall be reviewed by a judge of an administrative court.

2. (Amended: 8/6/2000-4577/s. 3) Actions arising from the disputes stated in paragraph (a) and (b) of Section 6 whose total value does not exceed one billion Turkish Liras shall be reviewed by a judge of the tax court.

3. Principles relating to the distribution of this type of cases to the judges shall be determined by the president of the court beforehand, taking into account the balance of the work.



Functions of the District Administrative Courts

Section 8.

The district administrative courts

a)     shall review and decide on the decision rendered by a single judge of administrative and tax court in its judicial district pursuant to the provisions of Section 7, upon an exception made against the decision,

b)     shall rule on disputes relating to competence and venue arising between administrative and tax courts within its judicial district,

c)      shall carry out other functions designated by the law.



Functions of the President of the District Administrative Courts

Section 9.

1. Presidents of the District Administrative Courts

a)     shall direct the deliberations and hearings. They present their views and opinions and cast their vote.

b)     They are responsible for the general management of the administrative and tax courts in their judicial district.

c)      They shall take necessary measures for the productive and orderly functioning of the courts, consulting the presidents of administrative and tax courts.

d)     At the end of each calendar year, the Presidents of the District Administrative Courts shall present a report to the Supreme Council of Judges and Public Prosecutors informing the state of the work in their judicial district and any deficiency in the execution of their functions and reasons for the deficiency. They shall also report the measures that should be taken.

e)     They shall carry out other functions designated by the law.

2. Correspondence of the administrative and tax courts with the Ministry of Justice and other official organs shall be made through the presidency of the district administrative court.



Functions of the Presidents of the Courts

Section 10.

Presidents of the Courts

a)     shall direct the deliberations and hearings, present their views and opinions and cast their vote. They shall ensure the attendance and orderly functioning of those who serve in the Court, and secure the productive functioning of the Division.

b)     At the end of each calendar year, the Presidents of the Courts shall present a report to the President of the District Administrative Court informing the state of the work in their courts and any deficiency in the execution of these functions and reasons for the deficiency. They shall also report the measures that should be taken.

c)      They shall carry out other functions designated by the law.



Functions of the Members

Section 11.

The Members, examining the case files assigned to them by the President of the Court which they are a member of, without any delay, shall present the necessary information about the case to the Court, submit their opinions and views, cast their vote, write down the decisions and carry out other duties about the Court designated to them.





Staff of the Courts

Section 12.

There shall be a registry under the direction of the chief reporter in each district administrative court, administrative court and tax court. A sufficient number of clerks and public servants shall be appointed to each court.



Changed Terms

Section 13.

After the tax courts assume their functions, the terms relating to the subject-matter jurisdiction of the tax courts, which are provided in other Acts, shall be understood as follows:

a)     Commission of Objections, Tax Appeals Commission, Customs Arbitral Committee shall mean Tax Court,

b)     Tax dispute shall mean tax action,

c)      Objection shall mean bring an action to tax court.



By-law

Section 14.

Administrative affairs of the district administrative courts, administrative courts and tax courts as well as procedure and principles that will be followed in the execution of secretarial works of these courts shall be regulated by a by-law, which will be issued by the Ministry of Justice.



Repealed Functions, Powers and Provisions

Section 15

1.      Functions and powers, falling within the jurisdiction of administrative and tax courts, assigned to the various committees and commissions by the law shall terminate on the date administrative and tax courts assume their functions.

2.      Provisions relating to the constitution of the Commission of Tax Objections and the Tax Appeals Commission shall cease to have effect on the day shown in the first paragraph.



Additional Section 1.

(Added: 24.2.1988-3410/s.4) – (Amended: 8.6.2000-4577/s. 4)

The monetary limits concerning actions that will be resolved by a single judge, provided under Section 7 of the present Act, shall increase proportional to the revaluation value determined and announced by the Ministry of Finance each year pursuant to Repeated Section 298 of the Tax Procedure Act, No. 213. The increase shall apply to the monetary limits of the previous year and shall be effective from the beginning of every calendar year. The part of the limits determined following this procedure that does not exceed ten million Turkish Liras shall not be taken into account in the revaluation.

The increase of monetary limits that applies from the beginning of every calendar year, as stated in the paragraph above, shall not apply to actions finalised at the administrative and tax courts before the increase came into force and to the actions retried by the first instance court following the reversal decision of the Council of State.



Provisional Section 1.

1. The Ministry of Justice, consulting the ministries of Internal Affairs, Finance and Customs, shall constitute district administrative courts, administrative courts and tax courts within six months from the entry into force of the present Act. The formation of the courts, their jurisdiction and the day that they assume their functions all over the country shall be promulgated in the Official Gazette.

2. Apart from those will be appointed among administrative justice judge candidates, the following persons may be appointed as presidents and members of administrative courts provided that they have a first degree either in law or in politics, administrative science, economy and finance that includes law modules in its curriculum:

a)     Judge rapporteurs and advocates general of the Council of State,

b)     Employees of the Ministry of Internal Affairs on the condition that the person concerned has entitled to be a county governor,

c)      Members and experts of Supreme Supervisory Council of the Prime Ministry,

d)     Director-generals, deputy director-generals and head of sections of government departments financed by the general and subsidiary budgets,

e)     Head consultants, consultants, attorney-advisors of the Prime Ministry and other ministries, legal advisors, district and province directors of the department of legal disputes, solicitors of the Treasury and attorney-advisors of the state owned enterprises,

f)        Rapporteurs, expert auditors, chief auditors and auditors, prosecutors and assistant prosecutors of the Audit Court.

Those who work in public service may also be appointed provided that they have served in one of the above-mentioned positions previously.

3.      Apart from those who will be appointed among administrative justice judge candidates within five years from the entry into force of the present Act; the following persons may be appointed as presidents and members of tax courts provided that they have a first degree either in law or in politics, administrative science, economy and finance that includes law modules in its curriculum:

a)     Judge rapporteurs and advocates general of the Council of State,

b)     Controllers and general accountants of the Ministry of Finance,

c)      Presidents, members, chief rapporteurs and rapporteurs of the Tax Appeals Commission and Permanent Commissions of Tax Objections,

d)      General director and deputy general directors of the General Directorate of Revenues of the Ministry of Finance, revenue controllers, chief consultants and consultants of the General Directorate of Revenues,

e)     Attorney-advisors of the Ministry of Finance, district and province directors of the department of legal disputes, legal advisors and solicitors of the Treasury,

f)        heads of financial departments in provinces and their assistants, and tax office directors,

g)      General director, deputy general directors, consultants of the General Directorate of Customs of the Ministry of Customs, directors of customs, general director and deputy general directors of the Customs Control and inspectors of the Ministries.

Those who work in public service may also be appointed provided that they have served in one of the above-mentioned positions previously.

4.      Appointments shall be made by the Supreme Council of Judges and Public Prosecutors, consulting the public institutions and organisations in which the person concerned is employed.

5.      Those who will be appointed as president of district administrative court must have worked in public service for ten years, at least three of which must have passed in one of the positions mentioned in the paragraphs above; whereas those who will be appointed as presidents and members of other courts must have worked in public service for five years, at least two of which must have passed in one of the positions mentioned in the paragraphs above. However, five-year period shall not be required for the presidents, members, chief rapporteurs and rapporteurs of the Tax Appeals Commission and Permanent Commissions of Tax Objections.

6.      Those who possess the qualifications stated in the second and third paragraph of the present Section may be appointed to the presidency and membership of district administrative courts.

7.      Provided that the presidents, members, chief rapporteurs and rapporteurs of the Tax Appeals Commission and Permanent Commissions of Tax Objections possess the qualifications stated in the present Section, they shall be preferred in the appointments to the presidency and membership of the tax courts.

8.      In the appointments; matters relating to the employment record of the person concerned, his success in the work, whether he has the character and morals required from a judge shall be examined and decided upon by the Supreme Council of Judges and Public Prosecutors.

9.      The procedure and period for the applications, which will be made according to the present section, shall be promulgated by the Ministry of Justice in the Official Gazette. No application conditions shall be required for judge rapporteurs and advocates general of the Council of State.



Provisional Section 2.

1. Monthly rank and grades of those who will be appointed to the presidency and membership of the district administrative courts, administrative courts and tax courts, pursuant to provisional section 1 of the present Act, shall be determined according to their ranks and grades acquired as vested right.

2. Until necessary arrangements are made in the Judges Act, provisions relating to the judges of ordinary courts shall apply to salaries, allowances, all financial and social rights of the presidents and members of the district administrative courts, administrative courts and tax courts, as well as to the other rights relating to their status.

a)     Provided that those who serve as judge rapporteurs and advocates general of the Council of State on the date the present Act comes into force fulfil the conditions prescribed in the provisions of the Judges Act relating to the promotion to the first category, they shall be subjected to the first category examination, taking into account the period they have served in the mentioned positions. However, those who have been promoted to the grades of the first rank before the present Act comes into force shall be deemed to be classified in the first category from the date they were promoted to the first rank, provided that they do not lose the competency to be appointed as a member of the Council of State.

b)     Amongst the persons who will be appointed to the presidency and membership of district administrative courts, administrative courts and tax courts for the first time from positions other than the judge rapporteurs and advocates general of the Council of State; those who are at the grades of the first rank after working one promotion period, those who are at the grades of the second rank after working two promotion periods, those who are at the grades of the third rank after working three promotion periods shall be subjected to the first category examination, without taking into consideration the period condition required for the promotion to the first category in the Judges Act.

c)      In the first category examination of those who are appointed to the district administrative courts, administrative courts and tax courts among judge rapporteurs and advocates general of the Council of State, the term of office in the Council of State shall be taken into account.



Provisional Section 3.

1. In order to meet the needs of the Courts constituted under the present Act, the list attached to the present Act is added to the sub-section concerning the judges and prosecutors of the section on courts and to the other relevant sections of the provincial staff list of the Ministry of Justice.

2. Until an act on general staff is enacted, all alterations that are required to be made about the personnel shall be made by the Supreme Council of Judges and Public Prosecutors, if the alteration is about judges, and by the Ministry of Finance about the other personnel, provided that the alteration is made within the limits of the attached list.



Provisional Section 4.

1. Names of the staff of the Permanent Commissions of Tax Objections and the Tax Appeals Commission, which will become defunct upon the assumption of office of the courts constituted under the present Act, who are appointed to these courts, shall be deleted from the staff list of the Ministry of Finance on the date that the appointment is concluded.

2. Those who have served as a rapporteur at the Permanent Commissions of Tax Objections and the Tax Appeals Commission for two years before the date that the courts constituted under the present Act assume of office may be appointed as administrative judge candidates by the Ministry of Justice.

3. The staff of the Permanent Commissions of Tax Objections and the Tax Appeals Commission that are not appointed to the courts constituted under the present Act shall be appointed to other positions appropriate to their status by the Ministry of Finance, and their position in those commissions shall be deemed to be cancelled on the date that the appointment is concluded.



Provisional Section 5.

The failure to comply with the requirements of the profession of those appointed to the presidency and membership according to provisional section 1 shall be determined by the Supreme Council of Judges and Public Prosecutors. The appointment of the persons concerned to another position appropriate to their rank and grade, except the allowances given, in government departments financed by the general and subsidiary budgets shall be secured by the Prime Ministry, upon the notification of the situation to the Prime Ministry by the Council. This provision may be applied for two promotion periods from the date of the appointment.



Provisional Section 6.

1.      Actions falling within the jurisdiction of the courts constituted under the present Act which were brought to the Council of State on the date that these courts assume their functions shall be finalised at the Council of State.

2.      If a decision of the commissions and committees whose judicial authority is abolished by the present Act is overruled by the Council of State, the relevant case file shall be sent to the administrative or tax court assigned to review the case.



Provisional Section 7.

1.      If no objection has been brought or no action has been filed to the commissions and committees, whose judicial authority is abolished, concerning disputes falling within the jurisdiction of the administrative courts under the provisions of the present Act, and if the period for the objection or action has not been expired before the date that the courts constituted under the present Act assume their functions, an action about the dispute may be brought to the administrative court that has jurisdiction over the case within sixty days from this court assumes its functions.

2.      An appeal with regard to the decisions given by the commissions and committees whose judicial authority is abolished, against which the appeal period to the Council of State has not been expired before the date that the courts constituted under the present Act assume their functions, may be brought to the Council of State within sixty days.



Provisional Section 8.

1. If no objection has been brought to the Commission of Objections and Customs Arbitral Committee concerning disputes falling within the jurisdiction of the tax courts, and if the period for the objection has not been expired before the date that the courts constituted under the present Act assume their functions, an action about the dispute may be brought to the tax court that has jurisdiction over the case within sixty days.

2. An action relating to the decisions given by the Commission of Objections, against which no appeal has been filed to the Tax Appeals Commission or Council of State, and against which the appeal period has not been expired before the date that the courts constituted under the present Act assume their functions, may be brought to the Council of State within sixty days.

3.      An action relating to the decisions given by Tax Appeals Commission and Customs Arbitral Committee, against which the appeal period to the Council of State has not been expired before the date that the courts constituted under the present Act assume their functions, may be brought to the Council of State within sixty days.



Provisional Section 9.

Case files that have been brought to the Commission of Objections and Customs Arbitral Committee or to another body whose judicial authority is abolished by the present Act, and about which a decision has not been reached on the date that the district administrative courts, administrative courts and tax courts assume their functions, shall be transferred to the administrative or tax court that has jurisdiction over the case within a month.



Provisional Section 10.

1. The principles concerning the transfer of the files of the commission of objections and Customs Referee Committee to the tax courts shall be prescribed by the Ministries of Justice, Finance and Customs jointly.

2. The principles concerning the transfer of the files of the other bodies, whose judicial authority is abolished by the present Act, to the administrative courts shall be prescribed by the Ministries of Justice and Internal Affairs.



Provisional Section 11.

1. Among case files present at the Tax Appeals Commission on the date that the tax courts assume their functions,

a)     those that can be resolved by a single judge according to section 7 of the present Act shall be sent to the district administrative court that has jurisdiction over the case,

b)     whereas all others shall be sent to the Council of State.

These cases shall be adjudicated by these courts.

2. The following principles shall apply with regard to the files transferred pursuant to the paragraph above:

a)     No additional charge or fee shall be imposed for these files.

b)     The cost of postage of these files shall be covered from the budget of the Ministry of Finance.

c)      The case files that have been finalised at the Tax Appeals Commission pursuant to the provisions of the Tax Procedure Act, shall be deemed finalised without applying the provisions of the Procedure of Administrative Justice Act. Provisions concerning the opinion of the advocate general at the Council of State are reserved.

d)     The relevant division or the court shall decide on whether to arrange a hearing for the case.

e)     Hearing notifications made by the Tax Appeals Commissions concerning these files shall be void.

f)   If the decision of the tax objection commission is overruled upon examination, the final judgment about the case shall be given on the court's own motion.

g)     Decisions of the Tax Appeals Commissions on requests concerning stay of execution shall be valid. However, these files shall be given priority.



Provisional Section 12.

The case files that have been sent back to the Tax Appeals Commission with the reversal decision of the Council of State and case files sent to the tax objections commission after its decision was overruled by the Tax Appeals Commission following the reversal decision of the Council of State, and which have not been adjudicated by this commission yet, shall be transferred to the tax court which has jurisdiction over the case. These courts shall adjudicate the cases in line with the reversal decision. 



Provisional Section 13.

Among case files sent to tax objection commission with an interlocutory decision of Tax Appeals Commission, about which the actions required by the decision have been taken, those which can be resolved by a single judge according to Section 7 of the present Act shall be sent to the district administrative court that has jurisdiction over the case, whereas all others shall be sent to the Council of State. Case files about which the actions required by the interlocutory decision have not been taken, after the necessary actions are taken as prescribed by the decision, shall be consigned to the authorised tax court to be transferred to the competent district administrative court or to the Council of State, depending on the relevance of the matter.





Provisional Section 14.

Case files that have been decided upon by the objection and appeal commissions, but not notified to the parties before the tax courts assume their functions, shall be consigned to the authorised tax court, within a month from the date that these courts assume their functions, to carry out the notification process. The cost of postage of these files shall be covered from the budget of the Ministry of Finance.



Provisional Section 15.

In order to meet the needs of the courts that will be constituted; the Ministry of Finance shall be authorised to make transfers from the relevant series of the budget of the Ministry of the Finance to the present series and series that will be created in the budget of the Ministry of Justice and to carry out other relevant operations.



Provisional Section 16.

In the application of this Act, provisions of the Constitutional Order Act, No. 2324, dated 27/10/1980 are reserved.



Provisional Section 17. (Added: 23/6/1983-2856/s. 1)

In the case that the persons who are appointed to the presidency and membership of the district administrative courts, administrative courts and tax courts want to retire within three years from they assume their office, their ranks and grades acquired as vested right, and if the person concerned has received the last grade of the first rank as vested right, their benefits from the additional charts, which they could receive before they were appointed to the judgeship of administrative justice, shall be taken into account in the retirement process. Additional charts belonging to judgeship of administrative justice shall not be taken into account.



Provisional Section 18. (Added: 8/6/2000-4577/s. 10)

Paragraphs 1 and 2 of the amended Section 7 of the present Act shall not apply to the cases about which the final judgment has been given by an administrative or tax court, and to the cases that have been sent back to the first instance court by a reversal decision of the Council of State before the entry into force of this amendment.



Coming into force

Section 16.

The present Act shall become effective upon the date of publication.



Execution
Section 17.

The provisions of the present Law shall be exercised by the Council of Ministers.





Provisions that cannot be Inserted to the Main Text of the Act No. 2576, dated 6/1/1982


1-           Provisional Section of the Act no 3410, dated 24/2/1988

Provisional Section – A decision of non-jurisdiction cannot be given because of the amendment made to Section 7 of Act No. 2576, dated 6.1.1982.
#91
COUNCIL OF STATE ACT

Act No                            : 2575
Date of Enactment        : 06.01.1982
Date of Promulgation
in Turkish Official Gazette   : 20.01.1982 No: 17580
Collection of Acts         : 5 Volume: 21, page: 119
Translated into English: Asst. Prof. Dr. Kerem ALTIPARMAK




                                                                      COUNCIL OF STATE ACT
PART ONE

                                                                              Constitution


Council of State
Section 1.

The Council of State is the Supreme Administrative Court established by the Constitution of the Republic of Turkey, responsible also for consultation and scrutiny.



Independence and Administration

Section 2.

1.        The Council of State is independent. It shall be represented and administered by the President of the Council of State.

2.        The Council of State's functions relating to the government shall be executed through the agency of the Prime Ministry.



Members of the Council of State

Section 3.

The Members of the Council of State are the President, Chief Advocate General, Vice-Presidents of the Council of State and the Presidents and members of the Divisions of the Council of State.



Security of Tenure

Section 4.

The President, Chief Advocate General, Vice-Presidents of the Council of the State and the Presidents and Members of the Divisions, as members of a supreme judicial organ, shall serve with security of tenure provided by the Constitution of Turkish Republic and the law.



Decision-making Organs

Section 5.

The decision-making organs of the Council of State are as follows:

a)       Divisions

b)       Plenary Assembly of the Council of State

c)        Board of Administrative Affairs

d)       Plenary Session of the Administrative Law Divisions

e)       Plenary Session of the Tax Law Divisions

f)          Assembly on the Unification of Conflicting Judgments

g)       Committee of Presidents

h)        High Board of Discipline

i)          Board of Discipline



General Secretariat

Section 6.

1.        A member appointed by the President of the Council of State shall serve as the Secretary General of the Council of State.

2.        Not more than two of the first category judge-rapporteurs or advocates general of the Council of State may be appointed as deputy secretary-general. Sufficient number of advocates general, judge-rapporteurs and employees shall be allocated to the Secretariat to carry out the functions of the Office.

Administrative Services
Section 7.

There shall be departments in the Council of State entrusted with the status of the Staff, Registration, Office Materials, Library and Publication, Archive, Social and Administrative Affairs, Clerical Works as well as other departments as envisaged by the present Act and deemed necessary.



PART TWO

Qualifications, Election and Appointment



Qualifications of the Members of the Council of State

Section 8.

1.        The Members of the Council of State shall be appointed amongst those who serve as a

a)       Judge or advocate general in administrative justice,

b)       Minister, permanent secretary, deputy permanent secretary, ambassador, governor,

c)        General, admiral,

d)       Secretary-general of the President of the Republic,

e)       Director-general in the government departments financed by the general and subsidiary budgets or in public institutions, or head of public investigation committees at least at the same level of director-generals,

f)          Professor of law, economy, finance or public administration at institutions of higher education,

g)       Chief legal advisor or a first category legal advisor a government ministry or, being again at the same level, legal advisor, counsel responsible for judicial matters, directors of the department of legal disputes at the Ministry of Finance.

2.        In order to be appointed as a member of the Council of State, judges and advocates general in administrative justice, after being promoted to first category, must successfully serve at this position for three years and must not lose their qualifications required by the position.

3.        Those who will be appointed as members of the Council of State from administrative positions must work for twenty years in the service of the State after they completed their higher education and at least for three years in one of the positions enumerated above. Those persons must be vested with the right to first class salary. They must also be of high moral character required from a judge.



Appointment of the Members

Section 9.

1.   Three-fourth of the vacant seats in the Council of State shall be appointed from judges and advocates general who serve in administrative justice, whereas the remaining one-fourth shall be appointed from the other positions.

2.   Judges and advocates general who serve at administrative courts shall be appointed by the Supreme Council of Judges and Public Prosecutors, and those from administrative positions by the President of the Republic.

3.   When the number of vacant seats in the Council of State reaches four, the Presidency of the Council of State shall inform the Prime Ministry and Ministry of Justice within three days from the date of the fourth post falls vacant.

4.   The appointment shall be made by the President of the Republic and the Supreme Council of Judges and Public Prosecutors in less than two months from this notification.

Qualifications, Appointment and Terms of Office of the President, Chief Advocate General, Vice-Presidents of the Council of State and Presidents of the Divisions

Section 10.

1.        The President, Chief Advocate General, Vice-Presidents of the Council of State and Presidents of the Divisions shall be elected by the Plenary Assembly of the Council of State amongst its own members, by an absolute majority of the total number of members.

2.        It is compulsory to have served as a member of the Council of State for eight years to be elected as the President and Chief Advocate General of the Council of State, six years to be elected as the Vice-President of the Council of State and the President of a Division.

3.        (Repealed: 22/3/1990 – 3619/s.12)

4.        The terms of office of the President, Chief Advocate General, Vice-Presidents of the Council of State and Presidents of the Divisions shall be four years. They may be re-elected at the end of their term of office. Those who cannot be re-elected, do not stand for the re-election or resign from office before its normal expiry shall continue to serve as members of the Council of State.

5.        The election shall be held fifteen days before the end of the term. If the post falls vacant due to any other reason, the election shall be held within fifteen days after the post falls vacant. Judicial recess shall not be taken into consideration in the calculation of this period.

6.        Those who want to stand as a candidate may either file an application to the Presidency of the Council of State or orally present their candidacy in the meeting before the election.

7.        The election shall be held by secret ballot. If no result can be obtained in the first three ballots, the fourth ballot shall be held between the two candidates who have received the highest number of votes in the third ballot. If the majority cannot be obtained in the fourth ballot, the election shall be renewed with a new presentation of candidates. However, if no result can be obtained in the first three ballots held after the renewal, the candidate who gets the greatest number of votes in the fourth ballot shall be deemed the winner of the election.

8.        At least three-fourth of all members must be present in the sittings of the Plenary Assembly that convene to hold this election.



Appointment of Judge-Rapporteurs and Advocates General and their Assignment to Divisions

Section 11.

1.        The judge rapporteurs and advocates general of the Council of State shall be appointed by the Supreme Council of Judges and Public Prosecutors among administrative justice judges who have served for five years and have a positive employment record.

2.        The service place of the judge-rapporteurs shall be determined by the Committee of Presidents. The service place shall be changed following the same procedure. The service place cannot be changed before the end of an employment record period unless it is necessary for administrative reasons. The employment record period shall be at least six months.

3.        Committees and Divisions at which the judge-rapporteurs serve shall be changed according to principles and periods determined in a by-law.





Qualification and Appointment of the Staff

Section 12.

Employees, who are mentioned in section 7 of this Act, must possess the qualifications set forth in Public Servants Act. Those employees shall be appointed by the Presidency of the Council of State.



PART THREE

Divisions and Committees



Divisions

Section 13.
1.        (Amended: 2/6/2004 – 5183/s.1) The Council of State shall be composed of thirteen divisions of which twelve are judicial and one is administrative.

2.        Each division shall consist of at least a President and four members, the quorum for deliberations being five. Decisions shall be taken by majority.

3.        There shall be a sufficient number of judge-rapporteurs in the Divisions.

4.        There shall be a registry under the direction of the chief reporter in each Division. The registry shall provide clerical service to the Division and make notifications.



Designation of the Presidents and Members to the Divisions

Section 14.

1.        The Presidents of the Divisions shall be elected as the President of a particular Division.

2.        The Members shall be designated to the Divisions by the decision of the Committee of Presidents. Their Divisions may be changed following the same procedure, in accordance with the requirements of the work.

3.        Members who work in the Judicial Divisions of the Council of State must have a first degree either in law or in politics, administrative science, economy and finance that includes law modules in its curriculum.

4.        Vacancies that might occur in the Divisions shall be filled by the designation of Members from other Divisions. Those Members shall be determined by the decision of the Committee of Presidents in advance.



Plenary Assembly of the Council of State

Section 15.

1.        The Plenary Assembly of the Council of State shall be composed of the President, Chief Advocate General, Vice-Presidents and Secretary-General of the Council of State and Presidents and Members of the Divisions.

2.        The quorum of the meetings and deliberations of the Plenary Assembly shall be more than half of the total number of the Presidents and Members in office.

3.        Decisions shall be taken by majority. In the event of a tie, the side that includes the President of the Council of State shall be deemed to have obtained the majority. Special provisions concerning the quorum required for the sessions of the Plenary Assembly are reserved.



Board of Administrative Affairs

Section 16.

1.        (Amended: 2/6/2004 – 5183/s.2) The Board of Administrative Affairs shall be composed of the President and Members of the administrative Division and one President or Member elected from each judicial Division by the Plenary Assembly at the beginning of each calendar year. When the elected posts fall vacant, Plenary Assembly shall renew the election within thirty days.

2.        This Board shall be presided by the President or one of the Vice-Presidents of the Council of State.

3.        The quorum of the meetings and deliberations of the Board shall be fifteen.

4.        In the deliberation of cases concerning the trial of public servants, the Board shall not include the President and Members of the Division that has given the decision on the case examined by the Board. In these sessions, the quorum of the sessions and deliberations shall be eleven.

5.        The decisions of the Board shall be taken by majority. In the event of a tie, the side that includes the President of the Board shall be deemed to have obtained the majority.

6.        A sufficient number of judge-rapporteurs and employees shall be appointed to the Board of Administrative Affairs.



Plenary Sessions of the Administrative and Tax Law Divisions

Section 17 (Amended: 2/6/2004 – 5183/s.3)

1.        The Plenary Session of the Administrative Law Divisions shall be composed of the Presidents of the Administrative Law Divisions and three Members of the each Administrative Law Division who will be elected for two years with a process which enables all Members to serve in the Plenary Session; whereas the Plenary Session of the Tax Law Divisions shall be composed of the Presidents of the Tax Law Divisions and three Members of the each Tax Law Division who will be elected for two years with a process which enables all Members to serve in the Plenary Session. Elected members can not be re-elected while there are members that have not been elected to the Plenary Session. In case that the Plenary Session members are unable to carry out their duties, or when they are on leave each division shall elect two substitute members in order to attend Plenary Sessions by using the same method. The election of members shall be made by secret vote at the beginning of the calendar year. When regular and substitute members of the Plenary Session fall vacant than the new members will be elected within seven days.

2.        The Plenary Session of Law Divisions shall be presided by the President or one of the Vice-Presidents of the Council of State; or in case of their absence by the highest ranking president of the Divisions.

3.        All the members of the administrative and tax law divisions shall take part in the deliberations. In the review of an appeal or an objection made against a judgment or a decision of an administrative law division or a tax law division, which has examined the case as a first instance court, the president and members of this division cannot take part in the Plenary Session. However, in the review of the decisions given in a combined session of two law divisions, the Plenary Session shall meet with the attendance of regular and substitute members of other law divisions.

4.        If the number of members present in the sessions is even, the lowest ranking member shall not participate in the session.

5.        The decisions of these Sessions shall be taken by majority.

6.        A sufficient number of judge-rapporteurs shall be assigned to the Sessions.  Besides this, there will be an office of chief reporter.







Assembly on the Unification of Conflicting Judgments

Section 18.

1.        The Assembly on the Unification of Conflicting Judgments shall be composed of the President, Chief Advocate General and Vice-Presidents of the Council of State and Presidents and Members of the Divisions.

2.        The quorum of meeting and deliberation of the Assembly shall be thirty-one. If the number of members present in the session is even, the lowest ranking member shall not participate in the session.

3.        In the first meeting of the Assembly, decisions on the merits shall be given by the absolute majority of all members. If the quorum of decision cannot be obtained in this session, the decision shall be given by the absolute majority of the present members in the second session.  Other decisions of the Assembly shall be given by majority.

4.        A sufficient number of judge-rapporteurs and employees shall be assigned to the Assembly on the Unification of Conflicting Judgments.



Committee of the Presidents

Section 19. (Amended: 22/3/1990 – 3619/s.2)

1.        The Committee of the Presidents shall be composed of the President, Chief Advocate General and Vice-Presidents of the Council of State and Presidents of the Divisions. The Committee shall be presided by the President of the Council of the State.

2.        If a Division President is prevented from taking part in the sittings, the highest ranking member of the Division concerned shall participate in the session of the Committee.

3.        The Decisions shall be given by majority.

4.        In the event of a tie, the side that includes the President of the Council of State shall be deemed to have obtained the majority.



High Board of Discipline

Section 20.

1.        The High Board of Discipline shall consist of one member from each Division and three Presidents, two from justice Divisions and one from administrative Divisions, all of which will be elected by the Plenary Assembly of the Council of State. The Members of the High Board of Discipline shall be renewed at the beginning of every calendar year in the same way. The High Board of Discipline shall be presided by the President of the Council of State. The Chief Advocate General shall be ex-officio member of the High Board.

2.        Two Division Presidents and five Members shall be elected as substitutes to the Board.

3.        All the members of the High Board shall take part in the deliberations. The quorum of decision shall be two-thirds of the members.

4.        When a post falls vacant, the vacancy shall be filled by a new election held by the Plenary Assembly of the Council of State under the procedure shown in the first paragraph of this section, within ten days after the post falls vacant.

5.        Clerical work of the High Board shall be carried out by the Secretary-General.









Board of Discipline

Section 21.

The Board of Discipline shall be composed of a Division President, a Member, a first category judge-rapporteur and an advocate general of the Council of State. The Members of the Board of Discipline shall be renewed at the beginning of every calendar year. One substitute shall be elected for each member following the same procedure. The Secretary–General shall be ex-officio member of the Board. The Division President shall preside over the Board. The Board shall give its decisions by majority.



Replacement of the Presidents and Chief Advocate General

Section 22.

1. If the office of the President is vacant, or the President is unable to carry out his duties, or he is on leave, the office of the President shall be assumed by the highest-ranking Vice-President.

2. In Divisions, the President shall be replaced by the highest-ranking Member. The Chief Advocate General shall be replaced by a Member who is appointed by the President of the Council of State. This Member must possess the qualifications required to be elected as Chief Advocate General.



PART FOUR

Functions of the Council of State, Divisions and Other Organs


Functions of the Council of State

Section 23
The Council of State shall

a)       (Amended: 22/3/1990 – 3619/s.3) review the appeals brought against the judgments given by administrative or tax courts and judgments rendered in the cases which have been examined by the Council of State as a first instance court,

b)       decide on administrative cases written in the present Act, as a first instance or appellate court,

c)        present its opinion on the draft legislation submitted by the Prime Ministry or the Council of Ministers,

d)       (Amended: 18/12/1999 – 4492/s.1) examine draft regulations of the Council of Ministers; present its opinion on the conditions and the contracts concerning public services under which concessions are granted,

e)       present its opinion on the matters submitted by the Presidency of the Republic and the Prime Ministry,

f)          exercise other functions assigned to it by the law.



Actions that shall be Reviewed by the Council of State as the First Instance Court

Section 24 (Amended: 2/6/2000 – 4575/s.2)

1. The Council of State shall be the first instance court in the annulment and full remedy actions brought against the following administrative acts and actions:

a)       Decisions of the Council of Ministers,

b)       (Amended: 2/6/2004 – 5183/s.4) Joint decrees relating to permanent secretaries of Prime Ministry and Ministries or other public bodies and organisations,

c)        Statutory instruments of the ministries and statutory instruments of  public bodies or public professional organisations that apply in the entire country,

d)       Actions and acts based on the decision of an administrative division or the Board of Administrative Affairs of the Council of State,

e)       Cases that fall within the jurisdiction of more than one administrative or tax court,

f)          Decisions of the High Board of Discipline of the Council of State and acts of the Presidency of the Council of State relating to the field of operation of the High Board.

The Council of State shall also decide in cases relating to disputes which arise from conditions and contracts concerning public services under which concessions are granted provided that arbitration has not been suggested to settle these disputes.

2. The Council of State shall review the applications concerning the loss of status of elected organs of the municipalities and provinces.



Actions that shall be Reviewed by the Council of State upon Appeal

Section 25 (Amended: 22/3/1990 – 3619/s.5)

Final decisions given by administrative and tax courts as well as final decisions of the Council of State acting as the first instance court shall be reviewed by the Council of State upon appeal. The Council of State shall adjudicate the dispute.



Subject-Matter Jurisdiction in Administrative Disputes and Actions

Section 26. (Amended: 2/6/2000 – 4575/s.3)

(Amended First Paragraph: 2/6/2004 – 5183/s.5) Administrative disputes and actions shall be reviewed and adjudicated in the Second, Third, Fourth, Fifth, Sixth, Seventh, Eighth, Ninth, Tenth, Eleventh, Twelfth and Thirteenth divisions and the Plenary Sessions of the Administrative and Tax Law Divisions.

Due to the requirements of the burden of work, the Committee of the Presidents may entrust one of the tax law divisions with the functions of administrative law divisions or one of the administrative law divisions with the functions of tax law divisions.

Matters on  how the case files of the entrusted Division will be transferred to other Divisions in line with  rules of jurisdiction on tax and administrative disputes and which Division's cases will be referred to the entrusted Division shall be decided by the decision of the Committee of Presidents. These decisions shall be promulgated in the Official Gazette and apply from the first date of the month following the decision.

The President and Members of the entrusted Division shall join the Plenary Session which reviews the matters that fall within the jurisdiction of the Division. 



Functions of the Second Division

Section 26/A (Added: 2/6/2004 – 5183/s.6)

The Second Division shall adjudicate on cases relating to the law on public employees.



Functions of the Third Division

Section 27.

The Third Division shall adjudicate on the following matters:

a)       Disputes between tax courts concerning competence and venue, and the designation of a court to exercise jurisdiction over connected cases,

b)       Matters concerning taxes, fees and duties which do not fall within the jurisdiction of other divisions.



Functions of the Fourth Division

Section 28.

The Fourth Division shall adjudicate on cases relating to income and corporate taxes.



Functions of the Fifth Division

Section 29.

The Fifth Division shall adjudicate on cases relating to the law on public employees.



Functions of the Sixth Division

Section 30.

The Sixth Division shall adjudicate on disputes arising from

a)       development, expropriation and demolition and other related matters,

b)       the law on antiquities.



Functions of the Seventh Division

Section 31.

The Seventh Division shall adjudicate on disputes relating to

a)       Custom Duty, transaction tax and taxes concerning exportation,

b)       Business Tax,

c)        Motor Vehicles and Vehicle Purchase Tax,

d)       Inheritance and Gift Tax,

e)       Stamp Duty and taxes relating to expenses made abroad.



Functions of the Eighth Division

Section 32.

The Eighth Division shall adjudicate on disputes relating to

a)       the application of the law on villages, municipalities and provinces,

b)       the loss of status of elected organs of local administrative bodies,

c)        the law on boundary, housing, the acquisition of land,

d)       the law on mines, stone quarries and forests,

e)       the law on public professional organisations,

f)          matters concerning students and education,

g)       (Repealed: 22/3/1990 – 3619/s.12)

h)        Highway Traffic Act.



Functions of the Ninth Division

Section 33.

The Ninth Division shall adjudicate on disputes relating to

a)       Real Property Tax and Real Estate Purchase Tax

b)       Real Estate Betterment Tax,

c)        Taxes, fees, duties and other revenues of villages, municipalities and provinces and their tariffs,

d)       Duties Act.



Functions of the Tenth Division

Section 34.

The Tenth Division shall adjudicate on the following matters:

a)       disputes between administrative courts concerning competence and venue, and the designation of a court to exercise jurisdiction over connected  cases,

b)       matters which do not fall within the jurisdiction of other administrative law divisions except divisions that review tax disputes,

c)        disputes relating to law on the protection of the value of Turkish currency.



Functions of the Eleventh Division

Section 34/A. (Added: 8/12/1994 – 4055/s.3, Amended: 2/6/2004 – 5183/ s.7)

The Eleventh Division shall adjudicate on cases relating to the law on public employees.



Functions of the Twelfth Division

Section 34/B. (Added: 8/12/1994 – 4055/s.3, Amended: 2/6/2004 – 5183/ s.8)

The twelfth Division shall adjudicate on cases relating to the law on public employees.



Functions of the Thirteenth Division

Section 34/C (Added: 2/6/2004 – 5183/s. 9)

Thirteenth Division shall adjudicate on disputes relating to following matters which are not in the function of other law divisions of the Council of State:

a)       Act on the Protection of Competition,

b)       Electricity Market Act, Natural Gas Market Act,

c)        Act concerning the Regulation of the Implementation of Privatization and Amendment of Certain Laws and Governmental Decrees Having the Force of Law,

d)       Act for Investment and Services Carried out under the Build-Operate-Transfer Model,

e)       Act regarding Building and Operating Electricity Generation Facilities under Build-Operate Model and the Regulation of Electricity Sale,

f)          Act regarding the re-organisation of the General Directorate of Tobacco, Tobacco Products, Salt and Alcohol Administration; and the Production, Sale and Purchase in National and International Markets of Tobacco and Products made of Tobacco and Amendment of Law Numbered 4046 and Decree having the Force of Law numbered 233,

g)       Act Regarding Preparation and Application of Technical Regulations Related to Products,

h)        Public Procurement Act,

ı)   Act on the Establishment of Radio and Television Enterprises and Their Broadcasts,

i)          Sugar Act,

j)          Radiotelephone Act,

k)        Act Relating to the Protection of the Value of Turkish Currency,

l)          Capital Market Act,

m)      Banking Act.



Actions Relating to Public Claims

Section 35.

Actions relating to the application of the Act on the Procedure of Public Claims' Collection shall be adjudicated by the Division which is empowered to review the actions concerning the assessment of the claim.

Adjudication in Disputes Relating to New Taxes

Section 36.

Disputes arising from the legislation that repeals a tax and replaces it by the same or a similar type of tax shall be adjudicated by the Division which was in charge to adjudge disputes arising from the repealed tax.



Designation of some Matters to other Divisions

Section 37. (Amended: 2/6/2004 – 5183/s.10)

If the burden of work of law divisions is disproportionate, a part of the matters falling within the jurisdiction of a Division may be transferred to another Division by the decision of the Committee of Presidents. Decisions on this matter shall be promulgated in the Official Gazette and apply from the first date of the month following the decision.



Functions of the Plenary Sessions of the Administrative and Tax Law Divisions

Section 38. (Amended: 22/3/1990 – 3619/s.6)

1. The Plenary Session of the Administrative Law Divisions shall review the following cases on appeal:

a)       Decisions of administrative courts insisting on their previous judgments, despite the reversal decision of a Division of the Council of State about the previous judgment,

b)       Judgments of the administrative law Divisions of the Council of State given as the first instance court.



2. The Plenary Session of the Tax Law Divisions shall review the following cases on appeal:

a)       Decisions of tax courts insisting on their previous judgments, despite the reversal decision of a Division of the Council of State on the previous judgment,

b)       Judgments of the tax law Divisions of the Council of State given as the first instance court.



Functions of the Assembly on the Unification of Conflicting Judgments

Section 39.

If a difference or conflict arises between the decisions of law Divisions or the Plenary Sessions of the Administrative and Tax Law Divisions, either given by the same organ or by the different ones, or when it is deemed necessary to modify a previous decision on the unification of conflicting judgments, upon the reference of the issue by the President of the Council of State, receiving the opinion of the Chief Advocate General, the Assembly on the Unification of Conflicting Judgments shall examine the matter and decide on the unification of the conflicting judgments or modification of its previous decision if it deems it necessary.



Those Who are Authorised to Request the Unification of Conflicting Judgments

Section 40.

1.        The unification of the conflicting judgments or the modification of the previous unification decision may be requested by the President of the Council of State, relevant Divisions, Plenary Sessions of the Administrative and Tax Law Divisions or the Chief Advocate General.

2.        Those who are affected by the conflicting decisions may apply to the Presidency of the Council of State with the request of unification.

3.        Decisions of the Assembly on the Unification of Conflicting Judgments relating to the unification of the conflicting judgments and the modification of the previous unification decision shall be promulgated in the Official Gazette within a month after they were sent.

4.        The Divisions and organs of the Council of State, administrative courts and the administration must comply with these decisions.



Jurisdiction in Administrative Matters

Section 41. (Amended: 2/6/2004 – 5183/s.11)

Administrative disputes and duties relating to administrative matters shall be examined in the First Division and the Board of Administrative Affairs.



Functions of the First Division

Section 42.

The First Division shall examine the following matters:

a)       draft legislation submitted by the Prime Ministry and the Council of Ministers,

b)       draft regulations submitted by the Prime Ministry,

c)        (Amended: 18/12/1999 – 4492/s.3) the conditions and the contracts concerning public services under which concessions are granted,

d)       disputes arising between administrative authorities relating to competence and venue that are submitted by the Prime Ministry,

e)       requests on subjects about which, according to the law, the opinion of the Council of State must be taken,

f)          matters submitted by the Presidency of the Republic or the Prime Ministry to be examined and advised on by the Council of State,

g)       disputes arising from the application of section 30 of Act No. 6830 on Expropriation,

h)        matters, either directly or through an application, designated to the Council of State pursuant to the Provisional Act on General Administration of Provinces,

i)          matters designated to the Council of State by the Municipalities Act which are not the subject of a judicial action,

j)          requests aimed at getting an authorisation for an association to be deemed a public benefit association,

k)        (Amended: 2/6/2004 – 5183/s.12) Functions carried out under the law concerning the trial of public servants and other public employees.

The First Division shall decide or present its opinion on the matter as required.



Functions of the Second Division

Section 43. (Repealed: 2/6/2004 – 5183/s.13)



Designation of Some Matters to the other Administrative Division

Section 44. (Repealed: 2/6/2004 – 5183/s.13)



Functions of the Plenary Assembly of the Council of State

Section 45.

The Plenary Assembly of the Council of State shall carry out the election duties designated to this Assembly by this Act and the law as well as other functions. The Assembly shall also accept the by-laws and internal regulations shown by this Act.



Functions of the Board of Administrative Affairs

Section 46.

1.  The Board of Administrative Affairs shall examine the following matters:

a)       (Repealed: 22/3/1990 – 3619/s.12)

b)       (Amended: 18/12/1999 – 4492/s.4) conditions and the contracts concerning public services under which concessions are granted,

c)        matters designated to the Board of Administrative Affairs by the law,

d)       disputes arising between the administrative divisions, boards and committees of the Council of State concerning competence,

e)       matters transferred by the President among the matters dealt with by the administrative Divisions apart from the ones shown above,

f)          pursuant to the Act on the Prosecution of Public Servants, all decisions given by the relevant administrative Division not to authorise prosecution and decisions of the Division authorising prosecution, which were brought to the Board by appeal.

The Board of Administrative shall decide or give its opinion on the matter as required by the law. The relevant administrative division of the Council of State must comply with the reversal.

2. If the decision given on the matters examined by an administrative Division, which has not been transferred to the Board of Administrative Affairs by the President of the Council of State as stated in sub-paragraph (e), are not in line with the opinion of the relevant Ministry, those decisions shall be examined by the Board of Administrative Affairs upon the request of the Minister.

3.        In the cases where an administrative Division has not decided on the merits due to jurisdictional or procedural reasons, if the Board of Administrative Affairs does not approve this decision, the file shall be sent back to the relevant Division. The Division shall examine the case in line with the instructions of the Board of Administrative Affairs and reach its decision.



Deliberation of the Administrative Matters

Section 47.

In the meetings of the Divisions and Committees, after the presentations of the members and judge-rapporteurs, deliberations on the matters shall start. Once the subjects have been clarified, first the problems relating to competence and procedure, if there are any, and then the other problems shall be decided upon.



Deliberations on Draft Bills, Draft Regulations of the Council of Ministers, Conditions and Contracts concerning Public Services under which Concessions are Granted

Section 48 (Amended: 18/12/1999 – 4492/s.5)

The Council of State must give its opinion on the draft legislation and draft regulations of the Council of Ministers and on conditions and contracts concerning public services under which concessions are granted within two months from the receipt of the request.









Obtaining Documents and Statement of the Authorised Persons

Section 49.

1.        The Council of State may ask from the relevant organs to bring any document or information required in the case. Authorised employees and experts from the relevant offices or from another institution may be invited to get more information.

2.        If the information and documents asked for concern the State's security and high interests or concern a foreign government along with the State's security and high interests, the relevant authority may refuse to give the information and documents provided that it notifies the Council of State of the reasons.



Direction of the Deliberations

Section 50.

The president shall direct the deliberations and determine the subjects that will be put to vote. Those who vote with the minority on the jurisdictional and procedural matters cannot refrain from voting on the merits.



Decisions

Section 51.

Names and surnames of the participants, subject of the case, a statement of justification, dissenting opinions and the date of the decision shall be included in the decisions. The Decisions shall be signed by the President and Members who participated in the session.



Functions of the Committee of Presidents

Section 52.

1. The Committee of Presidents shall examine the following matters:

a)       Designation of Members to the Divisions,

b)       Alteration of Divisions for the Presidents and Members when it is deemed necessary,

c)        Distribution of cases pursuant to sections 37 and 44,

d)       Disputes relating to competence arising between the Divisions of the council of State,

e)       (Added: 22/3/1990 – 3619/s.8) Disputes relating to competence and venue arising between the administrative and tax courts of the different judicial districts and the designation of a court to exercise jurisdiction over connected cases

f)          Matters transferred by the President of the Council of State.

The Committee of Presidents shall decide or give its opinion on the matter as required.

3.        The Committee shall convene with the invitation of the President.



Functions of the High Board of Discipline

Section 53.

The High Board of Discipline, under the provisions of this Act, shall decide to initiate disciplinary proceedings against the President, Vice-Presidents and Chief Advocate General of the Council of State and against the Presidents and Members of the Divisions, and impose disciplinary penalties upon them. The High Board shall also carry out other duties shown in this Act.







Board of Discipline

Section 54.

The Board of Discipline shall

a)       carry out the functions of the High Board of Discipline with regard to the employees of the Council of State;

b)       examine and decide on, as a first instance organ, the cases of the employees of the Council of State, pursuant to the Provisions of the Act on the Prosecution of Public Servants;

c)        serve as the Committee of Deliberation and Consultation with regard to employees of the Council of State, as provided under section 226, paragraph (B) of the Public Servants Act.



PART FIVE

Functions and Rights

Functions of the President of the Council of State

Section 55.

1. The President of Council of State shall be responsible from the general administration of the Council of State. He shall ensure the orderly functioning of the organs of the Council of State. If required, in consultation with the Presidents of the relevant Divisions and the Committee of Presidents, he shall take necessary administrative measures.

2. The President of the Council of State shall preside over the Plenary Assembly of the Council of State, Assembly on the Unification of Conflicting Judgments, Board of Administrative Affairs, Plenary Session of the Administrative Law Divisions, Plenary Session of the Tax Law Divisions, High Board of Discipline and the Committee of Presidents.



Functions of the Vice-Presidents of the Council of State

Section 56.

1. They shall carry out the functions of the President which have been delegated to them by the President.

2. They shall act for the President in his absence, according to rank and seniority.

3. They shall preside over the meetings which are not been attended by the President.



Functions of the Presidents of the Divisions

Section 57.

1.        Presidents of the Divisions shall ensure the attendance and orderly functioning of those who serve in the Division, ensure the training of judge-rapporteurs and employees of the Divisions. They shall also secure the productive functioning of the Division. They shall direct the deliberations. They shall attend the meetings of the Committees they are a member of, present their opinions and cast their vote.

2.        At the end of each calendar year, the Presidents of the Divisions shall present a report to the Presidency of the Council of State informing the state of the cases examined by the Division and any deficiency in the execution of the functions of the Division. They shall also report the measures that should be taken.







Functions of the Members

Section 58.

The Members shall examine the case files assigned to them by the President of the Division in the Divisions and by the President of the Organ in the other Organs of the Council of State, report the necessary information to the relevant Division or Organ without any delay and write down the decisions. They shall also attend the meetings of the Divisions and Organs of which they are a member, submit their opinions and views, cast their vote and carry out other duties about the Division assigned to them.



Functions of the Secretary-General

Section 59.

1. The Secretary-General shall carry out the tasks entrusted by the present Act as well as administrative and clerical duties assigned by the President of the Council of State.

2. Directories and other administrative sections that are not connected with the Divisions and the Chief Advocate General shall be under the direction and supervision of the Secretary-General.



Functions of the Chief Advocate General
Section 60.

1. The Chief Advocate General shall assign the case files to the advocates general according to the jurisdictional classification. He shall ensure the submission of the advocates general's reports on time, secure the attendance and orderly working of the other employees at the office of the Chief Advocate General. He shall take the measures to register and reserve the files received by the office and to submit the files whose examination has been finalised to the relevant organs.

2. The Chief Advocate General shall express his opinion on the cases and carry out other functions designated to him by the law.

3. At the end of each calendar year, the Chief Advocate General shall present a report to the President of the Council of State informing the state of the work and any deficiency in the execution of the functions of the Office. He shall also report the measures that should be taken.

4. The Chief Advocate General may charge one of the advocates general to assist him in the execution of administrative functions.



Functions of Advocates General

Section 61.

1. The advocates general shall examine the files assigned to them, on behalf of the Chief Advocate General, and give their written and justified opinion within a month in lawsuits and within two days in the applications for stay of execution. When these periods are exceeded they shall inform the Chief Advocate General about the situation and give their reasons for the delay. They shall carry out other duties assigned by the President and the Chief Advocate General of the Council of State, comply with the measures taken by the Chief Advocate General to maintain workplace order and to increase productivity.

2. The advocates general, through the Presidency of the Council of State, may request the relevant authorities to furnish any kind of information. They may also ask from the relevant organs to provide the files concerned.

3. If it is deemed necessary by the law Divisions or Plenary Sessions of the Administrative and Tax Law Divisions, and provided that the advocates general have been informed in advance, the advocates general of the Council of State shall also present their opinions orally.



Functions of Judge-Rapporteurs

Section 62.

1. The judge-rapporteurs shall examine the matters assigned to them by the President of the Council of State and the Presidents of Divisions and Organs and make the necessary statements to the Division or Organ concerned. They shall present their own opinions and views both in writing and orally, write the draft decisions and prepare the minutes. They shall also carry out other duties designated by the President of the Council of State, the President of the Division or the Organ.

2. In every Division and Organ, a first category judge-rapporteur, who will be appointed by the President of the Division or Organ concerned, shall supervise the attendance, training and productivity of the employees in the Division or Organ. He shall ensure the orderly execution of administrative and clerical services without delays. He shall also carry out the duties assigned by the President of the Council of State, the President of the Division or Organ.



Procedure that is Followed in the Execution of Functions

Section 63.

Provisions relating to the execution of the functions of the Members of the Council of State, judge-rapporteurs and advocates general stated in the sections above, to the regulation of the working procedure of the administrative Divisions, Boards and Committees, and to the implementation of the functions of the offices, which are enumerated in Section 7, and to the completion of the works within specific periods shall be included in the internal regulations of the Council of State.



Salaries and allowances of the President, Chief Advocate General and Members of the Council of State and other Financial Rights

Section 64.

As to the salaries, allowances, financial, social and other rights relating to the status; the law that applies to the President of the Court of Cassation, Chief Public Prosecutor of the Republic, Vice-Presidents of the Court of Cassation and the Presidents and Members of the Divisions of the Court of Cassation shall also apply to the President, Chief Advocate General and Vice-Presidents of the Council of State and the Presidents and Members of the Divisions respectively.



Visits Abroad
Section 65.

1. The Members of the Council of State, by the assignment of the Committee of Presidents, may be sent to foreign countries, where the system of administrative justice is in force to carry out scientific research in the field of administrative and tax law, and to make professional observations provided that this period does not exceed a year. Salaries, allowances, travel expenses and daily wage of the Member shall be paid to him during the visit.

2. Principles relating to the decision to send the President, Chief Advocate General and Vice-Presidents of the Council of State and the Presidents and Members of the Divisions abroad and other related matters shall be regulated by a by-law.



Acceptance of Other Jobs and Duties

Section 66.

1.        The Members of the Council of State may carry out scientific researches and make publications; they can also attend to national and international scientific meetings such as congress, conferences, seminars as well as other meetings concerning their profession with the permission of the President of the Council of State. Leaves up to fifteen days shall be given by the President of the Council of State, whereas leaves exceeding fifteen days by the Committee of Presidents.

2.        The Members of the Council of State may be assigned to the activities stated in the first paragraph by the Committee of Presidents.

3.        By a decision of the Committee of Presidents, the Members of the Council of State written in the paragraph above may deliver lectures and conferences in higher education institutions, in addition to their main functions.



PART SIX

Disciplinary Proceedings

Disciplinary Proceedings
Section 67.

If the state or the activities of the President, Chief Advocate General, Vice-Presidents of the Council of State and the Presidents and Members of the Divisions are seen or reported to be incompatible with the dignity and honour of a supreme judge or to be causing disruptions to the work of the Council of State, disciplinary proceedings shall be carried out against them under the provisions of the present Act.



Transfer of the Issue to the High Board of Discipline

Section 68.

When the President, Chief Advocate General, Vice-Presidents of the Council of State and the Presidents and Members of the Divisions are seen or reported to be in a state written in the above Section, the transfer of the issue to the High Board of Discipline shall be assessed and decided by the Committee of the Presidents.



Initiation of Disciplinary Proceedings

Section 69.

1. The High Board of Discipline shall decide whether it is appropriate to initiate disciplinary proceedings, according to the evidence obtained and the nature of the state and activities.

2. If the Board decides to initiate the proceedings, it shall appoint three persons among the Presidents and Members of the Divisions other than the Members of the Board. If the person who is charged is also a member of the High Board of Discipline, he cannot participate in the sessions on this issue. Their places shall be filled according to the procedure shown in Section 20.



Form of the Investigation

Section 70.

1. Those who are charged with the investigation shall notify the person concerned about the state and activities attributed to him, hear his defence, hear the testimony of others under oath when needed, gather information about the matter and ascertain the evidence.

2. All public bodies, organisations and institutions as well as natural and legal persons are obliged to answer the questions put by the investigators and to fulfil other requests. However, the provisions of Section 49 are reserved.



Submission of the Report

Section 71.

Investigators shall prepare a report about the inquiry that includes the information and evidence obtained and the opinion of the investigators on whether a disciplinary sanction should be imposed.



Procedure after Receiving the Report
Section 72.

1. The report prepared according to the above Section shall be submitted to the High Board of Discipline. Those who have carried out the investigation cannot participate in this Board.

2. The Chair of the Board shall notify the person concerned the result of the investigation in writing and invite him to present his defence in a period determined by the Chair, which cannot be less than five days.

3. The Chair of the Board shall assign the investigation file to one of the Members.

4. The Board shall review the matter on the bases of written evidence. If it deems necessary, it may decide to widen and deepen the investigation.

5. The person concerned may examine his file in the presence of the rapporteur Member.



Disciplinary Penalties

Section 73.

1. If the High Board of Discipline concludes that the existence of the attributed state and activities has not been proven, it shall decide to strike the file out of the list.

2. If the Board concludes that the existence of the attributed state and activities have been proven, taking into account the nature and the gravity of the breach, it shall decide to issue a warning to the person concerned or invite him to resign or retire, depending on his service period.

3. If the decision of the Board is about the President of the Council of State, the Vice-President, in all other cases, the President of the Council of State shall notify the decision to the person concerned.



Execution of Decisions

Section 74.

If the person concerned does not comply with the decision that invites him to resign or retire within a month after the notification, he shall be deemed resigned. He shall be deemed on vacation for the one-month period.





Legal Action against the Disciplinary Penalty

Section 75.

1. The person concerned may file an action against the decision within fifteen days from the notification of the decision of the High Board of Discipline. This action shall be decided upon within three months after the defence is presented or after the period for the defence expired. Judicial recess shall not be taken into consideration in the calculation of this period.

2. Positions of the persons concerned shall not be filled until the case is finalised.

3. Those who have participated in the decision of the High Board of Discipline or carried out the investigation cannot take part in the deliberations of the cases concerning disciplinary penalties.

./.. contunied

#92
Political Structure of TURKEY   

         DEVELOPMENT OF CONSTITUTIONAL MOVEMENTS IN TURKEY

The Ottoman Empire was among the first nonWestern nations to establish a constitutional government. Constitutional movements in the Ottoman Empire, which began during the second half of the 19th century, can be characterized as the product of the following developments: the decline of the Ottoman societal system, influence of the Western European socioeconomic and political developments and emergence of an enlightenment age in the Ottoman Empire. They were topdown constitutional movements in contrast with those of the Western countries.

Two major steps toward a constitutional government were  the Rescript of Tanzimat of 1839 and that of Islahat of 1856. The rescripts were unilateral declarations and recognition by the Sultan of certain basic human rights. These rescripts also paved the way for the promulgation of the first Ottoman Constitution in 1876. The 1876 Constitution provided certain mechanisms checking the absolute power of the Sultan by creating a legislative assembly partially elected by the people. In 1909, the 1876 Constitution was substantially amended to increase the powers of the legislature and to restrict those of the Sultan for developing a democratic monarchical political system similar to that of the Western European societies.

The 1921 Constitution established during the War of Independence included rules necessitated by the conditions and requirements of war. It proclaimed the principle of "national sovereignty" as an expression of the  radical revolutionary transformation in the Turkish society by establishing the constitutional principle that the Grand National Assembly is the sole and true representative of the nation. For realizing this purpose, it established an assembly government system in which all the powers of sovereignty were embodied in the parliament.

     1924 Constitution

The Republic of Turkey adopted its first constitution in 1924. It retained the basic principles of the 1921 Constitution, notably the principle of national sovereignty. As in the 1921 Constitution, the Turkish Grand National Assembly (TGNA) was considered to be the "sole representative of the nation." The 1924 Constitution provided for a continuation of the parliamentary system. Both the legislative and executive powers were embodied in the Assembly. Although the Assembly had the power to supervise and dismiss the Government, neither the Government nor the President had the authority to dissolve the parliament. The 1924 Constitution can be characterized as a step toward a parliamentary system. The Assembly was  able to exercise executive power through the President and the Council of Ministers. In other words, there was a clear separation of powers. Meanwhile, the collective responsibility of the ministers before the Assembly was also adopted.  The principle that the President must not bear any political responsibility was another feature of the 1924 Constitution. The judiciary was totally separated from the legislative and executive bodies. Judicial power was to be exercised by independent courts on behalf of the nation.

     1961 Constitution

The second constitution of the Republic of Turkey was adopted in 1961.  In its macrosocietal dynamics, the 1961 Constitution represents a positive response to the influence of the rising tide of the left and social state in the world and the semiindustrialized status of economy in Turkey. Consequently, it established a constitutional system within the framework of social state, rule of law and a parliamentarian democratic governmental system.

The 1961 Constitution introduced a bicameral parliament. The National Assembly, one  of the parliamentary chambers, consisted of 450 deputies elected by universal suffrage. The other chamber known as the Senate of the Republic, included 150 members elected by universal suffrage. Additionally it would include 15 members appointed by the President, members of the Committee of National Unity that seized power on May 27, 1960, and former presidents. The National Assembly had the final say in the lawmaking process.

In the exercise of executive power the President symbolically represented  the unity and integrity of the State. The Prime Minister and the Ministers made up the Council of Ministers, who bore political responsibility for the use of this power.

The 1961 Constitution fully separated the judiciary, the executive  and the legislative branches under the principle of the separation of powers. In this system, details regarding the security of judges, as well as matters related to the full freedom and independence of the courts, and the positions of the judges and public prosecutors were turned over to the "High Council for Judges and Public Prosecutors." Furthermore, the concept of the "Constitutional Court" was first introduced with the 1961 Constitution in accordance  with its aim of establishing a  fully developed concept of the rule of law.

     1982 Constitution

The third constitution of the Republic of Turkey, in effect today, was adopted in 1982. According to the 1982 Constitution, unconditional and unrestricted sovereignty is vested in the nation. It has been stipulated that the TGNA can convene with onethird of the total number of members to prevent parliamentary deadlocks. The TGNA can make decisions with an absolute  majority of those present; however, the quorum for decisions can, under no circumstances, be less than a quarter plus one of the total number of members.  The fundamental change in the legislature by the 1982 Constitution was the abolition of the Senate of the Republic. While executive functions are carried out by the President of the Republic and the Council of Ministers, judicial power is exercised by independent courts. Article 2 of the Constitution describes the Republic as a democratic, secular and social state governed by the rule of law.

The Constitution states that all Turkish citizens are united in national honor and pride, national joy and grief, their rights and duties towards the national entity, blessings and burdens, and in every manifestation of national life. The Constitution s­tipulates that the Republic of Turkey is committed to the nationalism of Atatürk. It also states that the Turkish State is an indivisible whole with its territory and nation. Democracy is obtained and preserved through state administration's adherence to law which limits the legislative and executive powers and provides a balance between the three powers.

Judicial review of administrative acts and the constitu­tionality of the laws are considered sine qua non for the rule of law. Further safeguards for the rule of law in the 1982 Constitution are the nonretroactivity of criminal laws, the legal judicial process and the prohibition of the denial of justice. Furthermore, the hierarchy of norms was adopted, preventing the lowernorms from being violated by the uppernorms. Constitutional Court decisions are binding for the legislative, executive and judicial branches, the government, all real persons and corporate bodies.

In addition, the 1982 Constitution recognizes all basic human rights such as freedom of speech, press, communications, travel, right to privacy, right to property. The fundamental social rights recognized by the Constitution are the right to organize unions, the right to strike and to collective bargaining, the right to social security, the right to education and the right to medical care.

The Turkish Grand National Assembly (TGNA) enacted the most comprehensive amendments to the Constitution on October 3 since it was drafted on November 7, 1982. With this amendment package, covering 34 articles, the Constitution was revised extensively in an effort to extend basic rights and freedoms, re-regulate social and economic life. The amendments went into effect after they were published in the Official Gazette on October 17.



BASIC ORGANS OF THE STATE

     LEGISLATURE

Legislative authority is vested in the Turkish Grand National Assembly (TGNA). The TGNA is composed of 550 deputies. Parliamentary elections are held every five years. Deputies represent the entire nation and before assuming office, take an oath, the text of which is included in the Constitution.

The duties and authority of the TGNA are outlined as follows: to adopt, amend and abrogate laws, to supervise the Council of Ministers and ministers, to give authority to the Council of Ministers to pass decrees with the power of law, to adopt the budget and final account draft laws, to ratify the printing or minting of currency, to make decisions for declaring war, martial law or emergency rule, to approve the signing of international agreements and to make decisions for declaring general or special amnesties.

     EXECUTIVE

The executive branch in Turkey has a dual structure. It is composed of the President of the Republic and the Council of Ministers.

     The President

The President of the Republic is the Head of the State. He/she represents the Republic of Turkey and the unity of the Turkish nation. The President is elected for a sevenyear term by a twothirds majority of the full membership of the TGNA. Turkish citizens of at least forty years in age can be elected President by the TGNA's secret ballot process. They can be either deputies who have received a higher education or those who are qualified to be elected as a deputy. A President cannot be elected for a second term in office.

The President of the Republic has functions and authority related to the legislative, executive and judicial fields. His/her functions in the legislative fields are to convene the TGNA when necessary, to publish laws and when deemed necessary, to send them  back to the Parliament for discussion, to hold a referendum in Constitutional amendments when he/she considers it necessary, to file suit with the Constitutional Court claiming a violation of Constitutional law, to issue decrees with the power of law and regulate the internal workings of the Parliament and to decide when new TGNA elections are necessary. The executive duties of the President are: to appoint or accept the resignation of the Prime Minister, to appoint or dismiss Ministers in the event that he deems it necessary, to chair meetings of the Council of Ministers or summon the Council to meet under his chairmanship, to appoint accredited envoys to represent the Turkish State abroad and receive representatives of foreign states, to ratify and publish international agreements, to act as the CommanderinChief of the Turkish Armed Forces, to appoint the Chief of General Staff, to convene the National Security Council and to chair meetings of the Council, to proclaim martial law or impose a state of emergency by a decree to be decided by the Council of Ministers meeting under his chairmanship, and to issue decrees with the power of law, to approve decrees as signatory, to commute or pardon the sentences of certain convicts on the grounds of old age, chronic illness or infirmity, to appoint the members and President of the State Auditory Council, to conduct investigations, enquires and research through the State Auditory Council, to select the members of the Higher Education Council, and to appoint University Chancellors. Duties and authority of the President related to the judiciary are to appoint: members of the Constitutional Court, one fourth of the members of the Supreme Court of Appeals, members of the Supreme Military Appeals Tribunal, members of the Supreme Council of Judges and Public Prosecutors.

No appeal may be made to any legal body, including the Constitutional Court, against decrees and presidential orders signed directly by the President of the Republic.

The President of the Republic may be impeached for high treason.



    The Presidents of the Republic of Turkey:

·         Mustafa Kemal Atatürk
(October 29, 1923  November 10, 1938)   

·         İsmet İnönü         
(November 11, 1938  May 22, 1950)

·         Celal Bayar 
(May 22, 1950  May 27, 1960)

·         Cemal Gürsel
(May 27, 1960  March 28, 1966)

·         Cevdet Sunay 
(March 29, 1966  March 28, 1973) 

·         Fahri Korutürk
(April 06, 1973  April 06, 1980)

·          Kenan Evren
(September 18, 1980  November 08, 1989)

·         Turgut Özal     
(November 09, 1989  April 17, 1993)

·         Süleyman Demirel   
(May 16, 1993  May 16, 2000)

·         Ahmet Necdet Sezer   
May 16, 2000

     

    Prime Minister and the Council of Ministers

The Council of Ministers consists of the Prime Minister, designated by the President of the Republic from members of the TGNA, and various ministers nominated by the Prime Minister and appointed by the President of the Republic. Ministers can be dismissed from their duties by the President or upon the proposal of the Prime Minister when deemed necessary.

When the Council of Ministers is formed, the government's program is read at the TGNA and a vote of confidence is taken. Members of the Council of Ministers are responsible for the execution of general policies. The Ministers assume two kinds of political responsi­bilities. First is responsibility for the general policy of the government, shared equally by all ministers. Second, each minister is individually responsible for matters within the jurisdiction of his/her own ministry and for the acts of his/her subordinates.

The fundamental duty of the Council of Ministers is to formulate and to implement the internal and foreign policies of the state. The Council is accountable to the Parliament in execution of this duty.

The Constitution also includes national defense in the section related to the Council of Ministers. The Office of the CommanderinChief, the Office of the Chief of the General Staff and the National Security Council form the authorative organizations for national defense.

The National Security Council consists of the Prime Minister, the Chief of the General Staff, the Minister of National Defense, the Minister of Interior, the Minister of Foreign Affairs, the Commanders of the Army, Navy and the Air Force and the General Commander of the Gendarmerie. The NSC makes decisions related to the determination, establishment and application of national security policy. The Council of Ministers gives priority to National Security Council decisions where measures deemed necessary for the preservation of the existence and independence of the state, the integrity and indivisibility of the country and the peace and security of the society are concerned.           

THE COUNCIL OF MINISTERS

Prime Minister                                      Recep Tayyip ERDOĞAN

Minister of Foregin Affairs

and Deputy Prime Minister                     Abdullah GÜL

Minister of State and

Deputy Prime Minister                           Abdullatif ŞENER

Minister of State and

Deputy Prime Minister                           Mehmet Ali ŞAHİN

Minister of State                                   Ali BABACAN

Minister of State                                   Mehmet AYDIN

Minister of State                                   Beşir ATALAY

Minister of State                                   Nimet ÇUBUKÇU

Minister of State                                   Kürşat TÜZMEN



Ministers
Agriculture and Rural Affairs                   Mehmet Mehdi EKER

Culture and Tourism                              Atilla KOÇ

National Defense                                   Vecdi GÖNÜL

National Education                                Hüseyin ÇELİK

Energy and Natural Resources               Hilmi GÜLER

Finance                                                Kemal UNAKITAN

Forestry  and the Environment                 Osman PEPE

Health                                                   Recep AKDAĞ

Public Works and Housing                      Faruk ÖZAK

Industry and Trade                                 Ali COŞKUN

Interior                                                  Abdülkadir AKSU

Justice                                                 Cemil ÇİÇEK

Labour and Social Security                     Murat BAŞESGİOĞLU

Transportation                                       Binali YILDIRIM

     Duties and Responsibilities of the Prime Minister

The Prime Minister is responsible for ensuring the Council of Ministers functions in a harmonious manner. He/she supervises implementation of government policy. The Prime Minister is the de facto head of the executive branch. Each Minister is accountable to the Prime Minister who in turn ensures that Ministers fulfill their functions in accordance with the Constitution and its laws.

     The Administration

The administration entity, its structure and functions, is regulated by law.  The organization and functions of the administration are based on the principle of centralization and local administration.

     Central Administration

Turkey is divided into provinces based on geography, economic conditions and public service requirements. Provinces are further divided into administrative districts.

     Local Administrations

Local administrative bodies are public entities established to meet the common needs of the local inhabitants of provinces, municipalities, districts and villages. The decisionmaking organs are chosen by the electorate prescribed in the law. The structure of the local administrations is defined by law.

     JUDICIARY

Judicial power in Turkey is exercised by independent courts and supreme judiciary organs. The judicial section of the Constitution, with the principle of a legal state as its basis, is founded on the independence of the courts and the judges, and the guarantee of judges' rights. Judges rule on the basis  of Cons­ti­tutional provisions, law and jurisprudence.

The legislative and executive organs must comply with the rulings of the courts and may  not change or delay the application of these rulings. Judges also assume the duties of monitoring elections.

Functionally, a tripartite judicial system has been adopted by the Constitution and accordingly, it has been divided into an administrative judiciary, a legal judiciary and a special judiciary.

The Constitutional Court, the Supreme Court of Appeals, the Council of State, the Supreme Military Court of Appeals, the Supreme Military Administrative Court and the Court of Jurisdictional Conflicts are the supreme courts mentioned in the judicial section of the Constitution. The Supreme Council of Judges and Public Prosecutors and the Supreme Council of Public Accounts are also two organizations having special functions in the judicial section of the Constitution.   

     HIGHER COURTS

     Constitutional Court

The basic function of the Constitutional Court, established in the 1961 Constitution, is to examine the constitu­tionality, in both form and substance, of laws, and decrees with the power of law and the Rules of Procedure of the Turkish Grand National Assembly. Other functions of the Court are as follows:

* With the capacity of the High Tribunal, the Constitutional Court judges the following: the President, members of the Council of Ministers, members of supreme courts, the chairman and members of the Supreme Council of Judges and Public Prosecutors and of the Supreme Council of Public Accounts, the Chief Republic Prosecutors and the Deputy Republic Chief Prosecutors for crimes related to their offices.

* It audits the finances of political parties.

* It examines TGNA decisions to revoke the immunities of deputies, or to dismiss members of parliament.

* It chooses the Chairman and Deputy Chairman of the Court of Jurisdictional Conflicts.

The Constitutional Court is composed of 11 regular and four substitute members. Decisions are made when the eleven members convene. The decisions of the Constitutional Court are final. These decisions cannot be amended in any manner and their application cannot be delayed.

     The Court of Appeals

The Court of Appeals is the last instance for reviewing rulings and judgments rendered by Judicial Courts, provided that they are not referred by laws to another place of jurisdiction. 

It is also the first and final authority for specific cases that are defined  in the law. The Court of Appeals reviews the rulings rendered by the Justice Courts, the Criminal Courts, the Examination Courts and renders verdicts upon appeal. The opinions rendered by the Court of Appeals are taken as precedents for legal rulings in the lower courts throughout the country, so that uniform application may be achieved. It is also able to modify its own ruling upon request.

     The Council of State

The Council of State is the Superior Court for administrative  justice and, as such, is the Court of last instance. It reviews all rulings rendered  by Administrative Courts, unless the laws specifically refer them to other judicial authorities. Similar to the Court of Appeals, the Council of State is also the court of first and final instance for specific cases as defined by law. It ensures the consistency of rulings among the administrative courts.

The Council of State is the highest consultative body of the state, and in this capacity, expresses its opinions on draft legislation upon the request of the Prime Minister or the Council of Ministers. It also examines draft regulations and concession contracts. It is responsible for resolving administrative disputes.

     Supreme Council of Public Accounts

The Supreme Council of Public Accounts shall be charged with auditing, on behalf of the Turkish  Grand National Assembly, all accounts related to the revenues, expenditures and property of government departments financed by general and subsidiary budgets. No applications for judicial review of its decisions shall be filed in administrative courts.

    Supreme Military Court of Appeals 

The Supreme Military Court of Appeals is the court of final instance for all rulings  and verdicts rendered by military courts. It is also a court of first and final instance with jurisdiction over certain military personnel, stipulated by law, with responsibility for any specific trials of these persons.

     Supreme Military Administrative Court

The Supreme Military Administrative Court has jurisdiction over military personnel in  administrative or active military service.

     Court of Jurisdictional Conflicts

The Court of Jurisdictional Conflicts is the final authority to settle disputes concerning the verdicts of the Justice, Administrative or Military  Courts. This court is made up of members of the Court of Appeals, the Council of State, the Supreme Military Court of Appeals, and the Military Administrative Court of Appeals.

     Military Courts

Military Courts have jurisdiction to try military personnel for military offenses, for offenses committed by them against other military personnel or crimes committed in military places, or for offenses connected with military service and duties.

     State Security Courts

State Security Courts were established to deal with offenses against the indivisible integrity of the State, against the free democratic order, or against the Republic whose characteristics are defined in the Constitution, and with offenses directly involving the internal and external security of the state. The courts consist of a president, two regular members and one substitute, one chief public prosecutor and a sufficient number of public prosecutors.

The Supreme Court of Appeals is the competent authority to examine appeals against the judgments of the State Security Court.

    Supreme Council of Judges and Public Pro­secutors

The Supreme Council of Judges and Public Prosecutors, an independent  institution, has the dual function of acting as the Supreme Council of Judges and as a reviewing body for objections. It elects the members of the Supreme Court  of Appeals, the Council of State and the Court of Jurisdictional Disputes; decides whether any proposal to abolish a Court or judicial post or change the jurisdictional direction of any court is appropriate; deals with administrative  matters concerning judges of the Administrative and Judicial Courts and Public  Prosecutors who are not members of the Supreme Court of Appeals or the Council of State.   

     POLITICAL PARTIES AND ELECTION SYSTEM

In conformity with conditions set forth in the law, every Turkish citizen upon the age of 18 has the right to vote, to be elected, and to engage in political activities independently or in a political party, and to take part in referendums.

Privates and corporals serving in the armed services, students in military schools,  and convicts in penal institutions cannot vote.

Elections in Turkey are single stage. According to a proportional representation system, general, equal and secret ballot elections are held throughout the country on the same day  under judicial  administration and supervision. The related law outlines the requirements for Turkish citizens living abroad to vote. The voter casts his vote in full freedom. The counting, recording and detailed presentation of votes are done publicly. Every province is an election area and every alderman's office is an election precinct.

According to the election law in Turkey, parties obtaining 10 percent of the votes throughout the country in general elections enter parliament.

Citizens over 18 years of age have the right to form political parties, and to join and withdraw from them in accordance with established procedure. 

Judges and prosecutors, members of higher judicial organs, teaching staff  at institutions of higher education, members of the Higher Education Council, civil servants in public organizations and corporations, and other public  employees not regarded as workers on account of the duties they perform, students, and members of the Armed Forces, shall not become members of  political parties. 

Prior permission to form a political party is not required. Parties are  allowed to function freely in accordance with the provisions of the Constitution and related laws which state that the internal  workings and decisions of political parties must conform to democratic precepts.

A political party consists of its central organs, provincial and country  organizations and the party group in Parliament. All political parties must  establish headquarters in Ankara. In order to establish a political party, the signatures of at least 30 Turkish citizens, eligible for election to Parliament, are required. The highest authority within the political party is its general council. The central organization consists of the general council, the leader of the party, the central decisionmaking and executive boards, the disciplinary board and its caucus.

    The Results of the General Elections (Nov. 3, 2002)


    Following the November 3 elections, the Justice and Development Party (AKP) received 363 seats in the 550-seat assembly. Only one other party, the Republican People's Party (CHP), exceeded the 10 % vote threshold to enter parliament.



    The Justice and Development Party (AKP) won an overwhelming victory and thus a majority in parliament in the general elections held on November 3. At a huge celebration at party headquarters, AKP Leader Recep Tayyip Erdoğan said: "We will not waste our time showing off our victory. We will build a Turkey where common sense prevails."



    While, the Justice and Development Party (AKP) has 14 female deputies, the Republican People's Party (CHP) has 12.



    The Justice and Development Party (AKP) claimed victory in the November 3 elections, paving the way for Turkey's first single-party government to assume power in over a decade. According to the official results, the AKP and the Republican People's Party (CHP) were the only two parties out of 18 to attain the 10 % threshold required to enter parliament. In addition, nine independent candidates won seats in parliament. Some 10 million of Turkey's total 41.5 million voters did not cast their ballots in the elections. The AKP won 34.29 % of the votes, which amounts to 363 seats in parliament, while the CHP won 19.38 % of the votes, winning 178 seats. Meanwhile, the three coalition parties of the current government were all defeated, with the senior Democratic Left Party (DSP) getting 1.22 %, the Motherland Party (ANAP) 5.13 %, and the Nationalist Action Party (MHP) receiving 8.36 % of the votes. Tansu Çiller's center-right True Path Party (DYP) hovered just below the 10 % threshold with 9.54 % of the votes.

     
    On November 10, the Supreme Election Board (YSK) announced the official results of the November 3 general elections. According to the official results, 32,768,161 out of 41,231,967 voters cast their ballots in the elections. A total of 31,528,783 votes were considered valid. The YSK announced that the Justice and Development Party (AKP), which received 10 million 808 thousand 229 votes, and the Republican People's Party (CHP), which won 6 million 113 thousand 352 votes, were the winners in the elections.



    On November 21, independent Elazığ Deputy Mehmet Ağar joined the True Path Party (DYP). With this action, the DYP has become the third party represented in parliament, along with the ruling Justice and Development Party (AKP) and the opposition Republican People's Party (CHP).



    Listed below are names of political parties and distribution of votes:





     

Party                                                              Vote                          %                  Seats

---------                                                             ----------                     ---------               ---------

Justice and Development Party (AKP)           10,808,229                  34.29                    363

Republican People's Party (CHP)                   6,113,352                  19.38                    178

True Path Party (DYP)                                  3,008,942                    9.54

Nationalist Action Party (MHP)                      2,635,787                    8.36

Young Party (GP)                                         2,285,598                    7.25

Democratic People's Party (DEHAP)              1,960,660                    6.22

Motherland Party (ANAP)                              1,618,465                    5.13

Felicity Party (SP)                                          785,489                     2.49

Democratic Left Party (DSP)                           384,009                     1.22

New Turkey Party (YTP)                                 363,869                     1.15

Grand Union Party (BBP)                                322,093                    1.02

Independents                                                  314,251                     1.00                         9

Homeland Party (YP)                                      294,909                     0.94

Worker's Party (İP)                                         159,843                      0.51

Independent Turkey Party (BTP)                        150,482                    0.48

Freedom and Solidarity Party (ÖDP)                  106,023                    0.34

Liberal Democratic Party (LDP)                           89,331                    0.28

Nation Party (MP)                                              68,271                    0.22

Communist Party of Turkey (TKP)                        59,180                   0.19


    Vote of confidence


    On November 16, President Ahmet Necdet Sezer gave the mandate to Abdullah Gül, Deputy Chairman of the AKP, in order to set up the new government. Abdullah Gül announced his cabinet on November 18. President Ahmet Necdet Sezer approved the list of ministers for the 58th Cabinet headed by Prime Minister Abdullah Gül. The list consists of 25 ministers, all of them deputies from the ruling Justice and Development Party (AKP).



    Founded only one year ago, the AKP faces a court case, which could outlaw it. In addition, its leader has been banned from assuming a government post by the courts. AKP Leader Recep Tayyip Erdoğan is banned from becoming a parliamentarian and prime minister due to his still continuing five-year ban from politics after being convicted of inciting hatred among religious groups.



    Members of the AKP government took office on November 19 after hand-over ceremonies in ministries. The program of the government was read out in the session of Parliament on November 23, debates on the program were held on November 26 and the new government received a vote of confidence from Parliament on November 28, two days after the completion of debates on the program.



     Local Elections

Elections for local administrations are held every five years. Byelections are held in the following cases: if elections in an electoral region are cancelled due to procedural irregularity; if a provincial assembly or a city council is dissolved by the competent authority; if the majority of seats in a provincial assembly or a city council is vacated for any reason; and if, for whatever reason, the mayoralties are vacated. All Turkish citizens 25 and older can be elected mayor or become a member of provincial assemblies and city councils providing the following conditions are fulfilled: all candidates must have completed primary school education, have full legal rights, have completed military service, have no prison  record of one year or more, must not have been convicted of embezzlement, corruption, bribery, theft, fraud, forgery, breach of trust or fraudulent bankruptcy, or of smuggling, conspiracy in official biddings or purchases, offenses related to the disclosure of state secrets, involvement in ideological and anarchistic activities, or incitement and encouragement of such activities. Furthermore, a candidate must have resided in the electoral area for at least six months.

In local elections, a proportional representation system, based on a ten percent barrier, is implemented for membership to provincial assemblies and town councils. For mayoral posts the simple majority system is used. In electing members of the provincial assemblies, each administrative district is an electoral region. In elections for mayoral posts and city council members, each city is an electoral region. Voters elect a metropolitan mayor in cities comprising an electoral region of more than one administrative district. Votes are cast in metropolitan areas also for mayoral and city council posts in each administrative district.   

The local elections were held on April  18, 1999 together with the general elections. 



Local Elections on March 28, 2004


A total of 43.5 million voters went to 174,355 polling booths on March 28 to cast their votes in the local elections to elect 93,353 local administrators.



According to a report prepared by the Anatolia News Agency, Istanbul has 7,361,261 registered voters, Ankara 2,735,292 and Izmir 2,460,060 voters. The city with the lowest number of voters is Bayburt with 59,784 registered voters.



According to a decision of the Supreme Board of Elections (YSK), there were twenty political parties which took part in the elections.



The local administrators that are elected will be in office for five years. The voters elected mayors for 16 metropolitan municipalities, 58 city municipalities, 65 cities, 792 municipalities and 2,253 districts. Some 52,929 muhtars (local administrators), 3,122 city general assembly members and 34,075 municipality assembly members were elected on March 28. There are 12 new municipalities in these elections.



The political parties which took part in the local elections were as follows:


     Workers' Party (EMEP)
     Democratic Left Party (DSP)
     Motherland Party (ANAP)
     Independent Turkey Party (BTP)
     Justice and Development Party (AKP)
     Grand Unity Party (BBP)
     Labor Party (IP)
     Freedom and Solidarity Party (ODP)
     Liberal Democrat Party (LDP)
     Turkish Communist Party (TKP)
     True Path Party (DYP)
     Brilliant Turkey Party (ATP)
     Nation Party (MP)
     Republican People's Party (CHP)
     Young Party (GP)
     New Turkey Party (YTP)
     Social Democrat People's Party (SHP)
     Felicity Party (SP)
     Democrat Party (DP)
     Nationalist Action Party (MHP)
     

According to the election results, out of 81 cities, the ruling Justice and Development Party (AKP) won 57 mayoral races, including those in Turkey's largest city, Istanbul and the capital Ankara. The main opposition Republican People's Party (CHP) won nine mayoral races, while the Nationalist Action Party (MHP) got four, and the True Path Party (DYP) one. The Social Democratic People's Party (SHP) won five mayoral races and the Democratic Left Party (DSP) won three. The national breakdown of votes is as follows: AKP, 41.8%; CHP, 18.1%; MHP, 10.4%; DYP, 10.1%; SHP, 4.9%; Felicity Party (SP), 4.01%; and Motherland Party (ANAP), 2.46.
     
   



      PROVINCES              PARTIES    NAME OF ELECTED MAYOR
      -------------------              --------------    ---------------------------------------

     ADANA                            AKP                Aytaç Durak
     ADIYAMAN                     AKP                Necip Büyükaslan
     AFYON                            AKP                Abdullah Kaptan
     AĞRI                                 AKP                Ekrem Aktaş
     AMASYA                         AKP                Ismet Özarslan
     ANKARA                         AKP                Melih Gökçek
     ANTALYA                        AKP                M.Tevfik Türel
     ARTVİN                            CHP                Emin Özgün
     AYDIN                              AKP                İlhami Örtekin
     BALIKESİR                      AKP                Sabri Uğur
     BİLECİK                           AKP                Selim Yağcı
     BİNGÖL                           AKP                Hacı Ketenalp
     BİTLİS                              AKP                Cevdet Özdemir
     BOLU                                AKP                Alaaddin Yılmaz
     BURDUR                          AKP                Sabahattin Akkaya
     BURSA                             AKP                Hikmet Şahin
     ÇANAKKALE                  CHP                Ulgur Gökhan
     ÇANKIRI                          AKP                İrfan Dinç
     ÇORUM                            AKP                Turan Atlamaz
     DENİZLİ                           AKP                Nihat Zeybekci
     DİYARBAKIR                  SHP                Osman Baydemir
     EDİRNE                            CHP                Hamdi Sedefci
     ELAZIĞ                             DYP                M.Süleyman Selmanoğlu
     ERZİNCAN                      AKP                Mehmet Buyruk
     ERZURUM                        AKP                Ahmet Küçükler
     ESKİŞEHİR                      DSP                Yılmaz Büyükersen
     GAZİANTEP                     AKP                Asım Güzelbey
     GİRESUN                         AKP                Hurşit Yüksel
     GÜMÜŞHANE                 MHP               Mustafa Canlı
     HAKKARİ                        SHP                Metin Tekce
     HATAY                             AKP                Mehmet Yeloğlu
     ISPARTA                          AKP                Hasan Balaman
     MERSİN                           CHP                Macit Özcan
     İSTANBUL                       AKP                Kadir Topbaş
     İZMİR                               CHP                Aziz Kocaoğlu
     KARS                                AKP                Naif Alibeyoğlu
     KASTAMONU                 MHP               Turhan Topcuoğlu
     KAYSERİ                         AKP                Mehmet Özhaseki
     KIRKLARELİ                   CHP                C.Yılmaz Sesen
     KIRŞEHİR                        AKP                Halim Çakır
     KOCAELİ                         AKP                İbrahim Karaosmanoğlu
     KONYA                            AKP                Tahir Akyürek
     KÜTAHYA                       AKP                Mustafa Ica
     MALATYA                       AKP                Cemal Akın
     MANİSA                           AKP                Bülent Kar
     KAHRAMANMARAŞ     AKP                Mustafa Poyraz
     MARDİN                          SP                   Metin Pamukcu
     MUĞLA                            CHP                Osman Gürün
     MUŞ                                  AKP                Necmettin Dede
     NEVŞEHİR                       AKP                Hasan Ünver
     NİĞDE                              MHP               Mümin Inan
     ORDU                               DSP                Seyit Torun
     RİZE                                  AKP                Halil Bakırcı
     SAKARYA                       AKP                Aziz Duran
     SAMSUN                          AKP                Yusuf Ziya Yılmaz
     SİİRT                                 AKP                Mervan Gül
     SİNOP                              AKP                Zeki Yılmazer
     SİVAS                               AKP                Sami Aydın
     TEKİRDAĞ                       AKP                Ahmet Aygün
     TOKAT                             AKP                Adnan Çiçek
     TRABZON                        CHP                Volkan Çanalıoğlu
     TUNCELİ                          SHP                Songül Erol Abdil
     ŞANLIURFA                    AKP                Ahmet Fakibaba
     UŞAK                               AKP                Mesut Apaydın
     VAN                                  AKP                Burhan Yenigün
     YOZGAT                          AKP                Yusuf Başer
     ZONGULDAK                  AKP                Secaattin Gonca
     AKSARAY                       AKP                Nevzat Palta
     BAYBURT                        AKP                Bekir Çetin
     KARAMAN                      AKP                Ali Kantürk
     KIRIKKALE                     AKP                Veli Korkmaz
     BATMAN                         SHP                Hüseyin Kalkan
     ŞIRNAK                           SHP                Ahmet Ertak
     BARTIN                            DSP                M.Rıza Yalçınkaya
     ARDAHAN                       Independent     Mikail Kayatürk
     IĞDIR                                MHP               Nurettin Aras
     YALOVA                          AKP                Barbaros Binicioğlu
     KARABÜK                       AKP                Hüseyin Erer
     KİLİS                                AKP                M.Abdi Bulut
     OSMANİYE                     AKP                Davut Çuhadar
     DÜZCE                             AKP                Mehmet Keleş
     
                   

POLITICAL PARTIES

(as of August 3, 2004)   



Democratic Left Party

(DSP Demokratik Sol Parti)

Founded on                 : November 14, 1985

Chairman                    : Zeki Sezer

Address                       : Mareşal Fevzi Çakmak Cad. No: 17 ANKARA

Phone                          : (0312) 212 49 50 ( 5 lines)

 

Nationalist Action Party

(MHP Milliyetçi Hareket Partisi)

Founded on                 : February 9, 1969

Chairman                    : Devlet Bahçeli

Address                       :Karanfil Sok. No: 69 Bakanlıklar/ANKARA

Phone                         : (0312) 417 50 60 (5 lines)   



Motherland Party 

(ANAP Anavatan Partisi)

Founded on                 : May 20, 1983

Chairman                     : Erkan Mumcu

Address                       : 13. Cad. No: 3 Balgat/ANKARA

Phone                          : (0312) 286 50 00 (20 lines)

 

Democratic Party

(DP Demokrat Parti)

Founded on                 : July 23, 1983

Chairman                     : Mehmet Ağar

Address                        : Selanik Cad. No: 40 Kızılay/ANKARA

Phone                          : (0312) 419 04 70 (2 lines)-417 22 40 (3 lines)



Felicity Party

(SP Saadet Partisi)

Founded on                : July 27, 2001

Acting Chairman        : Recai Kutan

Address                       : Ziyabey Cad. 2. Sok. No: 15 Balgat/ANKARA

Phone                         : (0312) 284 88 00

 

Justice and Development Party

( AKP Adalet ve Kalkınma Partisi)

Founded on                : August 14, 2001

Chairman                   : Recep Tayyip Erdoğan

Address                      : Ceyhun Atuf Kansu Cad. No: 202 Balgat / ANKARA

Phone                        : (0312) 2868989-2863084

 

Republican People's Party

(CHP Cumhuriyet Halk Partisi)

Founded on                 : September 9, 1923

Chairman            &
#93
ELECTRONIC SIGNATURE LAW
(Published in Turkish Official Gazette ref 25355, 2004-01-23)
SECTION ONE
Purpose, Scope and Definitions
Purpose
Article 1 – The purpose of this Law is to define the principles for the legal and technical
aspects and application of electronic signatures.
Scope
Article 2 – This Law covers the legal status of electronic signatures, operations concerning
electronic signatures and the activities of Electronic Certificate Service Providers (ECSPs).
Definitions
Article 3 – The definitions and abbreviations used in this Regulation have the following
meanings:
a) Electronic Data: Information which are generated, transferred or stored in electronic,
optical or similar methods,
b) Electronic Signature: Data in electronic form that are attached to other electronic data or
linked logically to that electronic data and used for authentication,
c) Signature Owner: A natural person, who uses an electronic signature creation device in
order to generate electronic signatures,
d) Signature Creation Data: Unique data such as password and cryptographic keys
belonging to a signature owner and being used by the signature owner in order to create electronic
signatures,
e) Signature Creation Device: Software or hardware products using the signature creation
data in order to generate electronic signatures,
f) Signature Verification Data: Data such as passwords and cryptographic public keys used
for the verification of electronic signatures,
g) Signature Verification Device: Software or hardware products using the signature
verification data for verification of electronic signatures,
h) Time-Stamping: An record signed electronically by the ECSP for the purpose of
verification of the exact time of creation, alteration, sending, receiving and/or recording of an
electronic data,
i) Electronic Certificate: Electronic data binding the signature verification data of the
signature owner to identity data of that person,
j) Authority: Telecommunications Authority.
Unofficial Translation of Turkish Electronic Signature Ordinance by Telecommunications Authority
Important Notice: In case of divergent interpretation, the original Turkish text shall prevail.
Page 2 of 9
SECTION TWO
Secure Electronic Signature and Certification Services
PART ONE
Secure Electronic Signature, Secure Electronic Signature Creation and Verification Devices
Secure Electronic Signature
Article 4- A Secure Electronic Signature shall be a signature that;
a) is exclusively assigned to the Signature Owner,
b) is generated with the Secure Electronic Signature Creation Device which is kept under
the sole control of the signature owner,
c) enables the identification of the Signature Owner based on the Qualified Electronic
Certificate,
d) enables detection as to whether signed electronic data has or has not been altered or not
subsequent to the signature being applied.
Legal Effect and Area of Application of Secure Electronic Signature
Article 5- A secure electronic signature shall have the same legal effect as that of a
handwritten signature.
A secure electronic signature shall not be applicable to legal proceedings subject to a special
procedure or an official form pursuant to laws and warranty contracts.
Secure Electronic Signature Creation Devices
Article 6- Secure Electronic Signature Creation Devices are Signature Creation Devices
which ensure that;
a) Electronic Signature Creation Data produced by those devices are unique,
b) Electronic Signature Creation Data recorded in those devices cannot be derived in any
means and that their secrecy is assured,
c) Electronic Signature Creation Data recorded in those devices cannot be obtained or used
by third parties and that electronic signatures are protected against forgery,
d) The data to be signed cannot be altered by anyone except the signature owner and can be
seen by the signature owner before the generation of a signature.
Secure Electronic Signature Verification Device
Article 7- Secure Electronic Signature Verification Devices are Signature Verification
Devices which;
a) display without any alteration the data used for verification of the signature to the person
who makes verification,
Unofficial Translation of Turkish Electronic Signature Ordinance by Telecommunications Authority
Important Notice: In case of divergent interpretation, the original Turkish text shall prevail.
Page 3 of 9
b) manage the signature verification process in a reliable and accurate way, and display the
results of verification without any alteration to the person who makes verification,
c) ensure that signed data is displayed in reliable manner when necessary,
d) display without any alteration its results to the person who makes verification
establishing in a reliable manner the authenticity and validity of the electronic certificate used for the
verification of the signature,
e) display without any alteration the identity of the signature owner to the person who
makes verification,
f) ensure the detection of any alterations that effect the conditions relevant to the
verification of the signature.
PART TWO
Electronic Certificate Service Provider, Qualified Electronic Certificate and Foreign
Electronic Certificates
Electronic Certificate Service Provider
Article 8 – For the purposes of this act, Electronic Certificate Service Providers shall be
public entities or establishments or natural persons or private law legal entities that provide qualified
electronic certificates, time-stamping and other services related to qualified electronic signatures.
Electronic Certificate Service Providers shall commence its operations within a period of two months
from the date of notification.
Electronic certificate service providers shall show in detail in their notification that they
ensure the provisions related to;
a) Using secure products and systems,
b) Managing operations in a reliable way,
c) Taking all necessary measures in order to avoid certificates being copied or distorted.
If the Authority determines the incompleteness or infringement of any of the above terms,
the Authority shall grant a period of up to a month to the Electronic Certificate Service Provider in
order to remedy this incompleteness; during this period the Authority shall suspend the operations of
electronic certificate service provider. At the end of the period, in the event that the incompleteness is
not remedied, the operations of the electronic certificate service provider shall be terminated. An
objection may be raised against such decisions of the Authority pursuant to the provisions in
paragraph 2 of Article 19.
Should Electronic Certificate Service Providers fail to comply with the provisions
mentioned in this article during their operations, the provisions of above paragraph shall be applied.
Electronic Certificate Service Providers shall comply with such lower and upper fee limits
to be determined by the Authority.
Unofficial Translation of Turkish Electronic Signature Ordinance by Telecommunications Authority
Important Notice: In case of divergent interpretation, the original Turkish text shall prevail.
Page 4 of 9
Qualified Electronic Certificate
Article 9 – It is required that Qualified Electronic Certificates shall include the following;
a) an indication that the certificate is a "qualified electronic certificate",
b) the identity information of the Electronic Certificate Service Provider and the country in
which it is established,
c) the identity information by which the Signature Owner can be identified,
d) Signature-Verification Data which correspond to Signature-Creation Data,
e) the date of the beginning and the end of the validity period of the certificate,
f) serial number of the certificate,
g) the information regarding the authorization of the certificate holder if the holder acts on
behalf of another person,
h) when the certificate holder so requests, occupational and other personal information,
i) information related to conditions of the usage of the certificate and limits on the value of
transactions, when applicable,
j) the Secure Electronic Signature of the electronic certificate service provider that verifies
the information in the certificate.
Electronic Certificate Service Provider Liabilities
Article 10 – Electronic Certificate Service Providers shall be liable for;
a) Employing personnel qualified for the services provided,
b) Determining reliably, based on official documents, the identity of the person to whom a
Qualified Electronic Certificate is issued,
c) Determining reliably, based on official documents, any information relating to the
Qualified Electronic Certificate holder's authorization of acting on behalf of anyone, or any
occupational or other personal information which is to be contained in the certificate,
d) Providing confidentiality of operation in cases where the Electronic Certificate Service
Provider generates Signature Creation Data or the applicant generates it on the premises of the
Electronic Certificate Service Provider or provide confidentiality of process when the signature
creation data are generated by tools provided by the Electronic Certificate Service Provider,
e) Informing the applicant in writing, before delivering the certificate to them, that a
qualified electronic signature has the same legal effect in transactions as a handwritten signature
unless otherwise specified by laws, and about the limitations concerning the use of certificates and
dispute resolution procedures,
f) Warning and informing the certificate holder in written form to not allow third parties to
use Signature Creation Data associated with Signature Verification Data in the certificate,
g) Keeping all records regarding the services provided for the period determined in
ordinance,
Unofficial Translation of Turkish Electronic Signature Ordinance by Telecommunications Authority
Important Notice: In case of divergent interpretation, the original Turkish text shall prevail.
Page 5 of 9
h) Informing the electronic certificate holder and the Authority at least 3 months prior to the
termination of operations.
Electronic Certificate Service Providers shall not store or keep a copy of generated
signature creation data.
Revocation of Qualified Electronic Certificates
Article 11 –Electronic Certificate Service Providers shall immediately revoke the qualified
electronic certificates upon;
a) the request of the certificate holder,
b) the detection of any forgery or falsification of the information existing in the database or
changes in such information,
c) the detection of the disability to act, bankruptcy or legally accepted disappearance or
death of the certificate holder.
Electronic Certificate Service Providers shall create a record including the date and time
when a certificate was revoked and which can be determined precisely and available by third parties
in a secure and prompt way.
Electronic Certificate Service Providers shall immediately revoke all qualified certificates
they have issued in the case of terminating their operations and in case the usage of certificates can
not be available by any operating electronic certificate service provider.
In the event that the Authority terminates the operations of electronic certificate service
provider, the Authority shall decide to transfer the qualified electronic certificates generated by the
regarding electronic certificate service provider to another electronic certificate service provider and
shall notify it to relevant parties.
Electronic Certificate Service Providers shall not retroactively revoke qualified electronic
certificates.
Protection of Personal Data
Article 12 – Electronic Certificate Service Providers;
a) shall not request any information from the applicant except that necessary to issue an
electronic certificate and shall not acquire such information without the consent of the applicant,
b) shall not keep the certificates available in public places where third parties may have
access without the consent of the electronic certificate holder,
c) shall prevent third parties from obtaining the personal data without the written consent of
the applicant. Electronic Certificate Service Providers shall not pass the related information to third
parties and use such information for any other purposes without the consent of the certificate holder.
Legal Liability
Article 13- Liabilities of Electronic Certificate Service Providers towards certificate holders
shall be subject to general provisions of Turkish law.
Electronic Certificate Service Providers shall be liable for compensation for damages
suffered by third parties as a result of infringing the provisions of this Law or the ordinances
Unofficial Translation of Turkish Electronic Signature Ordinance by Telecommunications Authority
Important Notice: In case of divergent interpretation, the original Turkish text shall prevail.
Page 6 of 9
published in accordance with this Law. Liability of compensation shall not occur if the Electronic
Certificate Service Provider proves the absence of negligence.
Electronic Certificate Service Providers shall be liable for damages arising from
infringements made by their employees. Electronic Certificate Service Providers shall not be relieved
of this liability by submitting any proof of evidence as described in Article 55 of the Turkish Code of
Obligations.
Any requirements limiting or removing the liability of Electronic Certificate Service
Provider against certificate holders and third parties are invalid, excluding the stated limitations of
the usage and value of the Qualified Electronic Certificates.
Electronic Certificate Service Providers must take out "certificate financial liability
insurance" in order to cover the damages incurred upon the failure in fulfilling the liabilities required
by this Law. Principles and procedures of this Regulation are determined by the ordinance prepared
by the Authority taking advice of the Undersecretary of the Treasury.
Certificate financial liability insurance foreseen in this article is provided by insurance
companies authorized in this branch. These insurance companies shall be liable for providing
certificate financial liability insurance. The insurance companies that infringe regarding liabilities
may be fined up to eight billion TRL by the Undersecretary of the Treasury. The provisions of
Article 18 address procedures for the collection of and appeals against this fine.
Electronic Certificate Service Providers shall be obliged to deliver electronic certificates to
the signature owners after taking out certificate insurance.
Foreign Electronic Certificates
Article 14 –The legal effects of electronic certificates issued by any Electronic Certificate
Service Provider established in a foreign country shall be recognized under international agreements.
In case that electronic certificates issued by any Electronic Certificate Service Provider
established in a foreign country are recognized by an Electronic Certificate Service Provider
established in Turkey, such electronic certificates are deemed to be Qualified Electronic Certificates.
The Electronic Certificate Service Provider established in Turkey shall be liable for any damages
arising from use of those electronic certificates.
SECTION THREE
Inspection and Penalty Provisions
Inspection
Article 15 – The inspection of Electronic Certificate Service Providers' operations and
transactions regarding the implementation of this Law shall be fulfilled by the Authority.
The Authority, as it considers necessary, may inspect Electronic Certificate Service
Providers. During inspection, Electronic Certificate Service Providers and relevant individuals shall
present all notebooks, documents and records and provide samples, written and oral information to
the Authority's inspectors, permit the inspectors to enter their premises and enable them to access
their accounts and transactions.
Unofficial Translation of Turkish Electronic Signature Ordinance by Telecommunications Authority
Important Notice: In case of divergent interpretation, the original Turkish text shall prevail.
Page 7 of 9
Use of Signature Creation Data without Consent
Article 16 – A person who obtains, delivers, copies or recreates the signature creation
device or data in order to create electronic signatures without the consent of the certificate holder
shall be sentenced from 1 year to 3 years and fined a minimum of 500 million TRL (Turkish Lira).
In the case where crimes mentioned in the above paragraph are committed by the employees
of an Electronic Certificate Service Provider, these penalties shall be scaled up by 50 percent.
Any damages arising from the crimes mentioned in this article shall be compensated
separately.
Forgery in Electronic Certificates
Article 17 – A person who partly or fully generates electronic certificates, or falsify or
copies electronic certificates generated as in valid, generates electronic certificates without
authorisation or knowingly uses such electronic certificates shall be sentenced from 2 years to 5 years
and fined a minimum of one billion TRL (Turkish Lira), even if their deeds become another crime.
If the crimes mentioned above are committed by the employees of an Electronic Certificate
Service Provider, these penalties shall be scaled up by 50 percent.
Any damages arising from the crimes mentioned in this article shall be compensated
separately.
Administrative Fines
Article 18 – Within this law:
a) An electronic certificate service provider who breaches Article 10 shall be fined 10
billion TRL,
b) An electronic certificate service provider who breaches Article 11 shall be fined 8 billion
TRL,
c) A person who breaches Article 12 shall be fined 10 billion TRL,
d) An electronic certificate service provider who breaches the paragraph 5 and paragraph 7
of Article 13 shall be fined for 8 billion TRL,
e) An Electronic Certificate Service Provider who breaches Article 15 shall be fined 20
billion TRL
The administrative fines in this Law are determined by the Authority. Decisions about fines
shall be notified to the persons concerned pursuant to The Notification Law number 7201. Any
appeals against these decisions may be made to the competent administrative court within a period of
7 working days starting from the date of notification. An appeal shall not nullify the fulfilment of the
decision. An appeal shall not nullify the fulfilment of the decision regarding the closure. An appeal,
when it is not necessary, shall be concluded by making analysis over the documents as soon as
possible. It is possible to apply to the Regional Administrative Court against the decisions that are
taken regarding the appeal. The decisions of the Regional Administrative Court will be the final
decree. The administrative fines imposed pursuant to this Law by the Authority shall be collected by
the Ministry of Finance pursuant to the provisions of the Law about Procedures Collecting Public
Receivables.
Unofficial Translation of Turkish Electronic Signature Ordinance by Telecommunications Authority
Important Notice: In case of divergent interpretation, the original Turkish text shall prevail.
Page 8 of 9
Repetition of Administrative Crimes and Closure
Article 19 – If any crimes described in Article 18 of this Law are repeated within a period
of 3 years from the date of the first instance, administrative fines are doubled, and in should the same
crime be committed for a third time, the Authority may decide to close Electronic Certificate Service
Provider concerned.
Any decision regarding closure shall be notified to relevant individuals pursuant to
Notification Law No. 7201. Any appeal against such a decision may be made to the competent
administrative court within a period of 7 working days from the date of notification. An appeal shall
not nullify the fulfilment of the decision. An appeal shall not nullify the fulfilment of the decision
regarding the closure. An appeal, when it is not necessary, shall be concluded by making analysis
over the documents as soon as possible. It may be applied to the Regional Administrative Court
against the decisions that are taken regarding the objection. The decisions of the Regional
Administrative Court will be the final decree.
SECTION FOUR
Miscellaneous Provisions
Ordinance
Article 20 – The procedures and the rules pertaining to the implementation of the Articles
6, 7, 8, 10, 11 and 14 of this Law shall be described in the ordinances to be published by the
Authority within the period of six months from the execution date of this Law with the collaboration
of all interested parties.
Exemptions about Public Entities and Establishments
Article 21 – The public entities and establishments providing certification services are
exempted from the forth and the fifth paragraphs of Article 8, 15 and 19 of this Law.
Article 22 - The following sentence has been added to the first paragraph of Article 14 of
the Turkish Code of Obligations dated 22.04.1926 No. 818:
"Secure electronic signature has the same effect as a handwritten signature"
Article 23 - The following 295/A article has been added to Article 295 of the Turkish Code
of Civil Procedure dated 19.6.1927 No. 1086:
"Article 295/A – Electronic data that are generated with secure electronic signatures in
accordance with procedures are equivalent to bill. These data are accepted positive evidence until the
contrary is proved.
Should any party deny the data generated by secure electronic signatures and alleged
against him, Article 308 of this Law shall be imposed through comparison."
Article 24 - The following Subclause (m) has been added to the first paragraph of Article 7
of the Turkish Radio Law dated 5.4.1983 No.2813 and therefore existing subclause (m) of the current
Law has been succeeded as subclause (n):
"m) undertaking the duties assigned by the Electronic Signatures Law"
Entry into Force
Unofficial Translation of Turkish Electronic Signature Ordinance by Telecommunications Authority
Important Notice: In case of divergent interpretation, the original Turkish text shall prevail.
Page 9 of 9
Article 25 – This Law shall enter into force six months after the date of its publication.
Execution
Article 26 - The provisions of this Law are executed by the Council of Ministers.
#94
Turkish PROCEDURE OF ADMINISTRATIVE JUSTICE ACT

Act No                            : 2577
Date of Enactment        : 06.01.1982
Date of Promulgation
in the Official Gazette   : 20.01.1982 No: 17580
Collection of Acts         : 5 Volume: 21, page: 147
Translated into English: Asst. Prof. Dr. Kerem ALTIPARMAK

PROCEDURE OF ADMINISTRATIVE JUSTICE ACT

PART ONE

General Principles



Scope and Characteristic
Section 1.

1.   Resolution of the disputes falling within the jurisdiction of the Council of State, regional administrative courts, administrative courts and tax courts shall be subject to the procedure prescribed in the present Act.

2.   The written trial procedures shall be applied in the Council of State, regional administrative courts, administrative courts and tax courts and the cases shall be reviewed on the bases of written evidence.



Types of Administrative Suits and the Limits of the Judicial Control of Administration

Section 2.

1) (Amended: 10/6/1994-4001/s.1) The following are administrative suit types:

a)   (Amended:8/6/2000-4577/s.5) Annulment actions concerning administrative acts that are brought by a person whose interests were violated by the act, with the claim that the act is illegal due to a mistake made in one of the elements of competence, form, reason, subject and aim,

b)   Full remedy actions brought by those whose personal rights have been directly affected by the administrative acts or actions,

c)   (Amended: 18/12/1999-4492/s. 6) Actions relating to disputes arising from administrative contracts signed to carry out  public services except disputes arising from conditions and contracts under which concessions are granted and for which arbitration is suggested,

2. The power of administrative justice is limited to the verification of the conformity of the actions and acts of the administration with law. The administrative courts cannot review the appropriateness of an act and action. No judicial ruling shall be passed which restricts the exercise of the executive function in accordance with the forms and principles prescribed by law, which has the quality of an administrative action and act, or which removes discretionary powers.

3.   The direct acts of the President of the Republic are outside the scope of judicial review.



Commencement of Administrative Suits

Section 3.

1.   (Amended: 10/6/1994-4001/s.2) Administrative suits shall be filed with a petition written to the presidency of the Council of State, administrative and tax courts.

2.   In the petitions,

a)   Names and surnames or titles and addresses of the parties, their counsels and their representatives, if they have any,

b)   Subject, reasons of the case and the evidence it is based on,

c)   Notification date of the administrative act which is the subject of the action,

d)   Disputed amount in the actions concerning taxes, fees, duties and other similar financial obligations or increases and penalties concerning these obligations and in full remedy actions,

e)   In tax actions, type and year of the relevant tax or tax penalty, date and number of the demand note, account number of the taxpayer, if available,

shall be included.



Places that the Petitions will be Filed with

Section 4.

Petitions, defence pleas and any document relevant to the case might be submitted to the presidency of the Council of State or the Court to which the case belongs or to the presidency of other tax and administrative courts to be sent to the former ones. They might also be submitted to the civil court of first instance in places where there is no administrative or tax court and to the Turkish consulates in foreign countries.



Cases in which the Actions can be brought with the Same Petition

Section 5. (Amended: 10/6/1994-4001/s. 3)

1.   A separate action shall be filed against each administrative act. However, an action might be brought against more than one act, if there is a legal or material connection or causal-consequential relation between the acts.

2.   In order that more than one person can bring an action with a joint petition, the plaintiffs must have a joint right or benefit and the events that gave rise to the action or the legal reasons must be same.



Procedure on the Petition

Section 6.

1.   After the cost of postage and fees of the petitions submitted to the presidency of the Council of State, administrative courts and tax courts or other bodies stated in section 4 were received, their registration shall be made and the registration date and number shall be written on the petition. The case is considered to be commenced on the date of registration.

2.   A sealed, signed receipt that shows the date and number of the registration shall be given to the plaintiffs.

3.   Petitions submitted to the other bodies stated in section 4 shall be sent to the presidency of the Council of State or the Court to which the case belongs with a registered mail, within three days. If fee stamps are not available at these bodies, the amount of the money received and the date and number of the receipt shall be written on the petition.

4.   (Amended: 10/6/1994-4001/s. 4) In the case that the petition was filed without paying the cost of postage or fee, or filed with incomplete cost of postage and fee, the president of the Division or a judge rapporteur assigned by him, the president of the court or a judge shall notify the person concerned that the cost of postage or fee must be paid or completed within thirty days. If the action required by the notification is not taken, the same notice shall be made for a second time. If the cost of postage or fee is not paid or completed within the time limit, it shall be decided that the action has not been brought, and the plaintiff shall be informed about the situation.

5.   (Amended: 10/6/1994-4001/s. 4) If the value of the postage fee decreases to the extent that it impedes the notification procedure after the action was brought, the president of the Division or a judge rapporteur assigned by him, the president of the court or a judge shall notify the person concerned that the postage fee must be completed within thirty days. If the action required by the notification is not taken, the same notice shall be made for a second time. If the postage fee is not completed within the time limit, the file shall be struck out of the list. If the plaintiff does not request the reopening of the action by completing the fee within three months from the notification of this decision, it shall be decided that the action has not been brought, and the plaintiff shall be informed about the situation.

6.   (Amended: 10/6/1994-4001/s. 4) Notifications stated in paragraphs four and five shall be made from the general budget and of the Court's own motion.



Time limit for the initiation of actions

Section 7.

1.   The time limit to bring an action is sixty days for the actions brought to the Council of State and administrative courts, thirty days for the actions brought to the tax courts, unless otherwise stated in the specific Acts.

2.   These time limits run from the day after

a)   In administrative disputes, the date on which the notification is made,

b)   In the disputes concerning taxes, fees, duties and other similar financial obligations or increases and penalties concerning these obligations: In taxes whose accruement is bound to the collection, the date of collection; in cases where a notification is made, the date of the notification or the date of the action that replaces the notification; in taxes which are collected by deduction, the date of the payment to the right-holder; in taxes which registration is required, the date of the registration; and in cases which the administration must bring an action, the date that the relevant decision of authority or commission arrives to the administration.

3.   Unless otherwise stated in the specific Act, in cases which the notification is made by proclamation to the persons whose address is not known pursuant to specific acts, the time limit runs from fifteen days after the date following the last day of proclamation.

4.   The time limit for bringing an action against statutory instruments whose promulgation is required shall run from the day following the promulgation date. However, upon the application of this act, the relevant persons may bring an action against the statutory instrument or against the specific act applied to the person or against both of them. The fact that the statutory instrument has not been annulled does not affect the annulment of the act based on this regulatory act.



Principles concerning Time Limits

Section 8.

1.   Time limits run from the day following the date of notification, promulgation or proclamation.

2.   Holidays shall be included in these periods. However, if the last day of the time limit coincides with a holiday, the time limit shall extend into the end of the working day following the holiday.

3.   If the last day of the periods written in the present Act coincides with the judicial recession, these periods shall be deemed to be extended for seven days starting from the date following the last day of the recession.



Applications to the Bodies that have no Jurisdiction

Section 9.

1.   (Amended: 5/4/1990-3622/ s. 2) In case of dismissal, due to lack of jurisdiction, of the actions brought to ordinary or military courts despite falling within the jurisdiction of the Council of State, administrative courts and tax courts, an action may be brought to the competent court within thirty days from the day after the date that the final decision is rendered on the subject. The date of application to the incompetent judicial organ shall be deemed to be the date of application to the Council of State, administrative courts and tax courts.

2.   Even if the thirty-days period written in the first paragraph has passed in cases which were brought to the ordinary or military courts and dismissed due to lack of jurisdiction, as long as the time limit envisaged to bring an administrative suit has not expired, a suit may be brought.



Silence of the Authorities

Section 10.

1.   The persons concerned may request the administrative authorities to implement an act or take an action that may be the subject of a lawsuit.

2.   (Amended: 10/6/1994-4001/s. 5) If the request is not replied within sixty days, it shall be deemed to be dismissed. The persons concerned may brought an action to the Council of State, administrative and tax courts, depending on the subject of the case, within the time limits running from the end of sixty-day period. If the response given by the authorities within sixty-day period is not final, the person concerned may either regard this response as dismissal or bring an action regarding this response as dismissal or wait for the final response. In this case, the time limit for the action shall not run. However, the waiting period cannot exceed six months from the date of application. In the case of not filing an action or dismissal of action due to the time limit, if a response is given by the authorities after the end of sixty-day period, an action might be brought within sixty days from the notification of the response.

3.   (Repealed: 10/6/1994-4001/s. 5)



Application to Superior Authorities

Section 11.

1.   Before bringing an action the person concerned may request the abolishment, withdrawal, alteration of the administrative act or the implementation of a new act from the superior authority, if there is no superior authority, from the authority that implements the act. This application shall stop the time limit that has started to run.

2.   If no response is given within sixty days, the request shall be deemed to be dismissed.

3.   When the application is dismissed or deemed to be dismissed, the time limit shall rerun and the period passed until the application date shall also be taken into account. 

4.   (Repealed: 10/6/1994-4001/s. 6)



Annulment and Full Remedy Actions

Section 12.

The persons concerned may bring directly a full remedy action or a full remedy action together with an annulment action to the Council of State, administrative and tax courts, against an administrative act that violates their rights. They may also commence the annulment action first, and, upon a decision rendered in the annulment action, bring the full remedy action within the action time limits running from the notification of the decision rendered in the annulment action or from the notification of the higher court decision, if an application against this decision has been brought to a higher court. The full remedy action against the damage caused by the implementation of an administrative act may be brought within the action time limits running from the implementation of the act. The relevant persons' right to apply to the authorities, as prescribed in section 11, shall also be reserved.



Commencement of a Full Remedy Action

Section 13.

1. The persons whose rights have been violated by an administrative action must apply to the relevant administration for the rectification of the situation within a year from the notification or the date they learn the action by another way and in any case within five years from the action, before bringing a lawsuit. A suit may be brought within the action time limits running from the day following the notification of this decision, if the application is wholly or partly refused, and from the end of sixty-day period if no response is given within sixty days.

2. The condition to apply administrative authorities prescribed in the first paragraph shall not be sought with regard to full remedy actions brought to the administrative justice courts after being brought to the ordinary or military courts and dismissed due to lack of jurisdiction.



Preliminary Examination of the Petitions

Section 14.

1.        In the Council of State, petitions shall be registered by the Directory of Documents and shall be referred to the competent Divisions by the General Secretariat.

2.        (Amended: 5/4/1990-3622/s. 5) In the administrative and tax courts, petitions shall be registered by the referral of the president of the court or a judge.

3.        (Amended: 5/4/1990-3622/s. 5) In the Council of State, a judge rapporteur assigned by the president of the Division, in administrative and tax courts, the president or a member assigned by him shall examine the following aspects of the petition respectively:

a)       Jurisdiction as to subject-matter and venue,

b)       Encroachment on administrative authority

c)        Legal capacity

d)       Whether there is a final administrative act that must be executed, which can be a subject of administrative suit,

e)       Statute of limitation

f)          Indication of adverse party

g)       Compliance with sections 3 and 5.

4.        (Amended: 5/4/1990-3622/s. 5) If the petitions are found against the law in one of these aspects, the situation shall be notified to the competent Division or Court by a report. No report shall be prepared for the petitions that are to be resolved by a single judge. In this case, provisions of section 15 shall be applied by the judge concerned. The examination carried out pursuant to the third paragraph and proceedings that take place pursuant to this and the fifth paragraph shall be finalised within fifteen days from the receipt of the petition.

5.        If those who carried out the preliminary examination do not find illegality on these points or the Division or Court does not uphold the preliminary examination report, notification shall be made.

6.        If the illegality of one of the aspects is determined after the preliminary investigation, provisions of section 15 shall apply in every stage of the action.







Decision rendered upon the Preliminary Examination

Section 15

1. (Amended: 5/4/1990-3622/ s. 6) If an illegality is found in one of the matters written in the third paragraph of the section above by the Council of State or administrative and tax courts, the following decisions shall be taken:

a) dismissal of the actions falling within the jurisdiction of ordinary and military courts; in the actions falling within the jurisdiction of administrative justice, if the action was brought to a court which lacks jurisdiction as to subject-matter or venue over the case, dismissal of the case and the dispatch of the case file to the competent court, pursuant to sub-paragraph (3) (a),

b) dismissal of the action in cases stated in sub-paragraphs (3) (c) (d) (e),

c) referral of the case to the correct defendant determined by the court, pursuant to sub-paragraph 3 (f), if no defendant or a wrong defendant was indicated,

d)   in cases stated in sub-paragraph 3 (g), dismissal of the petition for its preparation in line with the requirements of sections 3 and 5 or for rectification of deficiencies within thirty days; in cases stated in subparagraph (c), if the action was brought by a representative of competent person, who is not a counsel, dismissal of the petition for the commencement of the action personally or by a counsel within thirty days.

e)   referral of the petition to the authorised administrative authorities pursuant to sub-paragraph 3(b).

2.  In case of referral of the petitions to the body that has jurisdiction over the case, the date of application to the Council of State or the relevant Court shall be deemed to be the application date to the body that has jurisdiction over the case.   

3. If the petitions are dismissed because of the non-compliance with section 3, no additional fees shall be imposed.

4. (Amended: 10/6/1994-4001/s. 7) A request for the revision of judgment or an appeal against the decision given by the Council of State or the courts, and a request for an objection against the decision of a single judge might be made upon the preliminary examination, except the dismissal decisions due to non-jurisdiction given in actions falling within the jurisdiction of administrative justice, pursuant to sub-paragraph 1 (a) of the present section, the decision of notification to the correct defendant, pursuant to sub-paragraph 1 (c) and the decision of petition dismissal, pursuant to sub-paragraph 1 (d).

5.   (Added: 5/4/1990-3622/s. 6) If the same errors are repeated in the renewed petition prepared upon the dismissal of the petition according to sub-paragraph (d), the case shall be dismissed.



Notification and Response

Section 16.

1. A copy of the petition that commences the action and its annexes shall be notified to the defendant, whereas the defence plea shall be notified to the plaintiff.

2. The second petition of the plaintiff shall be notified to the defendant, whereas the second defence plea of the defendant shall be notified to the plaintiff. The plaintiff cannot respond this plea. However, if it is established, at a later stage, that the second defence plea includes matters that must be answered by the plaintiff, a period shall be given to the plaintiff for response.

3. Parties might response to the notified petitions within thirty days from the notification. Provided that there are justified reasons, this period might be extended for once and not more than thirty days by the decision of the competent court, upon the request of one of the parties. Requests for extensions made after the end of time limit shall not be accepted.

4. Parties cannot claim any right depending on the defence plea and the second petition submitted after the time limit.

5. (Amended: 10/6/1994-4001/s. 8) The original or the certified copy of the files concerning the action shall be submitted to the presidency of Council of State or the court concerned along with the defence plea of the administration.



Hearing

Section 17.

1. (Amended: 5/4/1990-3622/s. 7) Hearing shall be held, upon the request of one of the parties, in annulment actions, in full remedy actions the amount of which exceeds one billion Turkish liras, and in tax cases concerning taxes, fees, duties and other similar financial obligations or increases and penalties concerning these obligations the total amount of which exceeds one billion Turkish liras.

2. In appeals and objections, holding of hearings depends on the request of the parties and the decision of the Council of State or the relevant regional administrative court.

3. The request for hearing might be made in the action petition, defence plea or responses.

4. (Amended: 5/4/1990-3622/s. 7) Irrespective of the conditions stated in the first and second paragraphs, the Council of State, the court or the judge might decide to hold a hearing of its/his own motion.

5. Hearing notices shall be sent to the parties at least thirty days before the hearing.



Principles concerning Hearings

Section 18.

1. Hearings shall be open to the public. In cases where reasons of public morality or public security require, all or part of the hearings shall be held in closed session, by the decision of the competent Division or Court.

2. Hearings shall be directed by the president.

3. In hearings, each of the parties shall be given two chances to present their oral arguments. If just one of the parties appears at the hearing, his statements shall be heard; if none of the parties appear, the hearing shall not be held and the matter shall be reviewed on the bases of written evidence.

4.   The presence of advocate general in the hearings held at the Council of State is compulsory. After hearing the parties, the advocate general shall present his written opinion. After this presentation, the last words of the parties shall be asked and the hearing shall be ended.

5.   In cases about which a hearing is held, if the request of the advocate general as to the inspection, expert examination, obtaining of evidence or to the dispatch of act file is not accepted by the Division or Plenary Session in charge, they shall present their opinion about the merits separately in writing.   



Decisions in cases about which a hearing is held

Section 19.

(Amended first sentence: 10/6/1994-4001/s. 9) The decision shall be rendered within fifteen days from the hearing. In cases where an interlocutory decision is given, upon the execution of this decision, priority shall be given to the examination of these files.

Examination of Files

Section 20.

1. The Council of State, administrative and tax courts shall carry out all examinations about the actions before them, of their own motion. The Courts might ask the parties and other persons and authorities to send documents they deem necessary and to present all kind of information within a determined period. The fulfilment of the decisions on these matters in due time by the relevant persons is compulsory. Provided that there are justified reasons, this period might be extended for once.

2. If one of the parties fails to fulfill the requirements of an interlocutory decision, the effect of this failure on the decision shall be assessed by the court beforehand and this matter shall be noted in the interlocutory decision.

3. However, if the information and documents asked for concern the State's security or high interests or concern a foreign government along with the State's security and high interests, the Prime Minister or the Minister concerned may refuse to give the information and documents provided that it notifies the reasons. (Added sentence: 10/6/1994-4001/s. 10) The decision cannot be given with reference to the defence based on the information and documents that have not been submitted.

4.   (Repealed: 10/6/1994-4001/ s. 10)

5.   (Amended: 5/4/1990-3622/s. 8) Case files in the Council of State, regional administrative, administrative and tax courts shall be examined in sequence of receipt and shall be decided in the order in which they become ready for decision, taking account of cases of priority and urgency prescribed in this and other acts as well as of priority matters promulgated in the Official Gazette after being determined by the Committee of Presidents for the Council of State and by the Supreme Council of Judges and Public Prosecutors for other courts. Files other than the above-mentioned ones shall be concluded in the order in which they become ready for decision and within six months from the date that they become ready for decision.



Documents that are Submitted at a Later Stage

Section 21.

Documents that were not submitted along with the petition and defence plea shall be accepted and notified to the adverse party, if the Court is convinced that their timely submission was impossible. If these documents are submitted at a hearing and the adverse party proclaims that he can present his response to the document right away or he does not seem it necessary to comment on the document, the notification shall not be made.



Decision on the Case

Section 22.

1.   When the matters are clarified, issues shall be put on vote in sequence and be decided upon.

2.   Those who vote with the minority on the jurisdictional issues or on matters enumerated in section 15 shall also cast their vote on the merits. Dissenting opinion shall be annexed to the end of judgment.



Memorandum

Section 23.

A memorandum shall be prepared for every case file, containing the names and surnames of the president, members and the parties; in the Council of State, names of the advocate general who presented his opinion and judge  rapporteur; the file number, subject of the action and the judgment, names of those who vote with majority and with minority. These memorandums shall be signed by those who are attended the same session and be kept in the relevant files.



Matters that must be included in the Judgments

Section 24.

The following points shall be included in judgments:

a)       Names, surnames, titles and addresses of the parties, their counsels and their representatives, if there are any,

b)       A summary of events as submitted by the plaintiff and the legal basis of the claim, final submission of the plaintiff and a summary of defence,

c)        (Amended: 10/6/1994-4001/s. 11) In the actions reviewed by the Council of State, names and surnames of the judge rapporteur and advocate general and their opinions,

d)       In the actions where the conduct of hearing was requested, whether a hearing has been held; if it has been held, names and surnames of the parties and counsels or representatives who attended the hearing,

e)       The legal basis of the judgment, statement of justification and conclusion; and the amount of compensation awarded in compensation actions,

f)          Costs of trial and to which party it is imposed,

g)       The date of the judgment and whether it has been rendered unanimously or by a majority vote,

h)        Names, surnames and signatures of the President and members of the Court or the judge and the dissenting opinions, if there are any,

i)          Name of the Division or Court that renders the judgment and registration and judgment numbers of the file.



Storage of Judgments and Notification

Section 25.

An original copy of the judgment signed by the president and members of the court or by the judge shall be put in the judgment file and another one in the case file. Another copy, certified by the Court's seal and the signature of the president or judge, or in the Council of State, by the seal and the signature of the president of the Plenary Session or Division or another person assigned by him, shall be sent to the parties.



Changes in Personality and the Status of the Parties

Section 26.

1. If a modification occurs in the personality or status of the parties due to death or any other reason, until the person who has the right to pursue the action applies; in case of decease of the plaintiff, until the administration renews its pursuit against the heirs of the deceased, the relevant Court shall decide to suspend the action. If a petition to recommence the action is not submitted within four months, the stay of execution decision shall automatically become invalid.

2. Petitions that concern only the deceased person shall be struck out of the list.

3.   (Amended: 5/4/1990-3622/s. 9) In case that the notification cannot be made to the address shown by the plaintiff, the action shall be suspended and if there is a stay of execution decision, the decision shall automatically become invalid until the new address is apprised. If a request to renew the action, with a new address, is not made within a year, the action shall be deemed not to be brought.

4.   (Amended: 5/4/1990-3622/s. 9) Decisions concerning the suspension of the action and the dismissal due to the failure to renew shall be notified to the adverse party.



Stay of Execution

Section 27 (Amended: 10/6/1994-4001/s. 12)

1. Bringing an action to the Council of State or administrative courts shall not prevent the execution of the administrative act which is the subject of the action.

2. If the implementation of an administrative act should result in damages which are difficult or impossible to compensate for, and if this act is clearly unlawful, the Council of State or administrative court may decide to stay the execution of the act, stating the reasons thereof.

3.   In the tax courts, bringing actions arising from tax disputes shall stop the collection of the disputed part of the imposed taxes, fees, duties and other similar financial obligations or increases and penalties concerning these obligations. However, the collection process shall be carried out about the actions that are suspended according to third paragraph of section 26. Recommencing an action suspended in this way, acts implemented upon the submission of declarations made with reservations and actions brought against collection acts shall not stop the execution of collection process. A stay of execution order might be requested in these actions.

4.   The time limits written in section 16 might be shortened in actions which a stay of execution order is requested, it might also be decided to make the notification through an employee.

5.   The stay of execution order shall be given after a financial guarantee is deposited. However, deposit of financial guarantee might not be sought, according to the requirements of the situation. The dispute arises between parties about the financial guarantee shall be resolved by the Division, Court or judge that renders the stay of execution order. Financial guarantee shall not be asked from the administration and those to whom free legal aid is granted.

6.   As to the decisions concerning the stay of execution order; an objection can be made against the decisions of a judicial division of the Council of State to the Plenary Session of the Administrative Law Divisions or to the Plenary Session of the Tax Law Divisions, depending on the subject of the action, against the decisions of the regional administrative court to the nearest regional administrative court, against the decisions of administrative or tax courts and against decisions rendered by a single judge to the regional administrative court. During the judicial recess period, an objection can be made against the decisions of the tax and administrative courts to the nearest on duty court or to the on duty court in which the judge who gave the decision does not participate. Objections can be made within seven days from the notification of the decision and for once. Bodies to which the objections have been brought must decide on the objection within seven days. Decisions rendered upon objections shall be final.

7.   Priority shall be given to the actions about which the stay of execution order is given.



Consequences of Decisions

Section 28.

1. (Amended: 10/6/1994-4001/s. 13) The administration must implement the acts and take the actions required by the judgments and stay of execution orders given by the Council of State, regional administrative courts, administrative and tax courts without delay. This period, under no circumstances, can exceed thirty days from the notification of the decision to the administration. However, in the actions concerning the implementation of distraint and sequestration, the act shall be implemented by the administration after the judgment becomes final.

2. (Amended: 10/6/1994-4001/s. 13) Decisions rendered in full remedy actions that concern certain amount of money shall be executed pursuant to the general provisions.

3. A compensation action might be brought to the Council of State or to the court concerned for the pecuniary and non-pecuniary damages caused by the failure of the administration to implement acts and to take actions required by the decisions of the Council of State, regional administrative courts, administrative and tax courts.

4. If the public servants deliberately fail to fulfil the requirements of the decisions of the Courts within thirty days, in addition to the action that might be brought against the administration, a compensation action against the public servant who failed to fulfil the requirements of the decision might be brought.

5. After the notification of court decisions concerning tax disputes to the administration, amount of the taxes, fees, duties and other similar financial obligations or increases and penalties concerning these obligations assessed according to the decision shall be notified to the taxpayer by the administration.

6. In compensation and tax actions, default interest shall be paid by the administration for delays in the implementation of decisions occurred after the notification of the decision to the administration.



Explanation

Section 29.

1. If the decisions rendered by the Council of State, regional administrative court, administrative and tax courts are not clear enough, or if the paragraphs of the conclusion contradict each other, each of the parties may request the explanation of the decision or the rectification of this contradiction.

2. The number of copies of the petitions for explanation shall be one more than the number of the adverse parties.

3. The division or the court that rendered the decision shall examine the matter, if it deems it necessary, send a copy of the petition to the adverse party to answer within the determined period. Answer shall be given in two copies. One of these shall be sent to the party which requests the explanation or the rectification.

4. The decision of the competent division or court on this matter shall be notified to the parties.

5.   Explanation or rectification might be requested until the implementation of the decision.



Correction of Errors

Section 30.

1. The correction of errors relating to the names and surnames, status and claims of the parties or of calculation errors made in the conclusion part might also be requested.

2. Provisions of section 29, except the last paragraph, shall also apply to these requests.

3. If a decision for correction is given, this shall be added to the end of the decision.



Cases where the Civil Procedure Act and Tax Procedure Act Apply

Section 31.

1. As to the matters which there is no rule in the present Act; provisions of the Civil Procedure Act shall apply to matters concerning the challenge and withdrawal of the judge, capacity, participation of the third party in proceedings, notice of litigation to third party, counsels of the parties, waiver and admission, financial guarantee, cross-action, expert, inspection, obtaining of evidence, costs of trial and free legal aid as well as the measures that should be taken against the behaviour of parties that violate the discipline and rules of conduct.

(Added sentence: 5/4/1990-3622/s. 11; Amended: 10/6/1994-4001/s. 14) However, the Council of State, court or judge of its own motion shall issue the notice of litigation to the third party and appoint the expert.

2. On condition that the provisions of the present Act and references made to the Civil Procedure Act in the paragraph above are reserved, the relevant provisions of the Tax Procedure Act shall apply in the resolution of tax disputes. 



PART TWO

Actions that Shall be Taken with regard to Matters concerning Jurisdiction, Connection and Lack of Jurisdiction in Administrative Lawsuits



General Jurisdiction in Administrative Suits

Section 32.

1.   Provided that the general provisions regarding to subject-matter jurisdiction are reserved, if the administrative court that has jurisdiction over the case is not prescribed in the present Act or in other specific Acts, the administrative court that is located in the region of the administrative authority, which made the administrative acts or administrative contracts, shall have jurisdiction over the case.

2.   In the implementation of the present Act, determination of jurisdiction as to venue shall be regarded as a requirement of public order. (Repealed second sentence: 10/6/1994-4001/s. 15)



Jurisdiction in cases concerning Public Servants

Section 33.

1.   (Amended: 5/4/1990-3622/s. 12) In actions concerning the appointment of public servants and their transfer to a new post, administrative courts that are located in the region where the public servant previously served or presently serve shall have jurisdiction over the case.

2.   In actions concerning the dismissal, retirement or disciplinary suspension of public servants, administrative court that is located in the region where the public servant last served shall have jurisdiction over the case.

3.   (Amended: 5/4/190-3622/s. 12) In actions concerning disciplinary sanctions that do not end with the dismissal of the public servant and concerning the promotion, progress, employment record, acquirement of ranks and other rights relating to status and financial rights of public servants as well as actions concerning organs of local administrative bodies and removal of members of these bodies from their posts as a temporary precaution, administrative court that is located in the region where the person concerned serves shall have jurisdiction over the case.







Jurisdiction in actions concerning immovables and public administrations

Section 34. (Amended: 10/6/1994-4001/s. 16)

1.   In the application of the law relating to immovables, such as development, expropriation, demolition, occupation, appropriation, written authorisation and settlement or any right bound to these acts or in actions concerning public domain administrative court that is located in the region of the immovable concerned shall have jurisdiction over the case.

2.   In actions concerning the application of the law on villages, municipalities and provinces as well as in border disputes, the court that is located in the region of the unit of the civilian administration, village, municipality or quarter is located shall have jurisdiction over the case.



Jurisdiction in actions concerning movable assets

Section 35. (Amended: 5/4/1990-3622/ s. 13)

In cases concerning movable assets, the court that is located in the region of the moveable asset shall have jurisdiction over the case.



Jurisdiction in Full Remedy Actions

Section 36.

In full remedy actions other than the ones arising from administrative contracts, the administrative court

a)   which has the power to resolve the dispute that caused the damage,

b)   if the damage arose from a service such as development or transportation, or from an action of administration, which is located in the region where the service is rendered or the action is taken,

c)   in other cases, which is located in the region of the plaintiff's residence,

shall have jurisdiction over the case. 



Jurisdiction in Tax Disputes

Section 37.

Under the present Act, in tax disputes, the tax court which is located in the region of

a)   the office which calculates and finalises the assessment of taxes, fees, duties and other similar financial obligations or which imputes increases and penalties,

b)   (Added: 10/6/1994-4001/s. 17) with regard to taxes that must be collected pursuant to the Customs Act and acts of dismissal of tax correction objections made pursuant to the Tax Procedure Act; the office which calculates and finalises the assessment of taxes, fees, duties and other similar financial obligations,

c)   with regard to the application of the Act on the Procedure of Public Claims' Collection, the office which issued the payment order,

d)   with regard to other disputes, the office which made the administrative act that is the subject of the action,

shall have jurisdiction over the case.



Jurisdiction in the Connected Cases

Section 38.

1. (Added: 10/6/1994-4001/s. 18) Connected cases are those arising from the same facts or legal reasons or those which a decision given in one of them affects the other.

2. In actions brought to administrative courts, tax courts or the Council of State or brought to more than one administrative and tax courts, the existence of the connection shall be determined by the court either upon the request of one of the parties or of its own motion.

3.   If one of the connected cases is at the Council of State, the case file shall be sent to the Council of State.

4.   If the connected cases are at courts falling within the jurisdiction of different regional administrative courts, case files shall be sent to the Council of State.

5.   If the connected cases are at courts falling within the jurisdiction of same regional administrative courts, files shall be sent to the regional administrative court located in that region.



Examination of the Connection by the Council of State

Section 39.

1. Division of the Council of State that is empowered to examine the action shall examine and decide upon the connected cases with priority and urgency.

2. In case that the Council of State holds that there is a connection:

a)   (Amended: 5/4/1990-3622/s. 14) If one of the actions was brought to the Council of State and its adjudication falls within the jurisdiction of the Council of State, all cases shall be reviewed at the Council of State and the situation shall be notified to the courts concerned and the parties.

b)   If the connected cases concern disputes falling within the jurisdiction of tax and administrative courts located in the judicial region of the different regional administrative courts, the relevant Division of the Council of State shall determine the court that has jurisdiction over the case in its decision. The Division shall send the case files to this court and notify the situation to other court(s). The court that is empowered to examine the case shall notify the situation to the persons concerned.

c)   (Amended: 10/6/1994-4001/ s. 19) If the Council of State decides that there is no connection, case files shall be sent to the courts concerned.

                                     

Examination of the Connection by the Regional Administrative Court

Section 40.

1. The regional administrative court shall examine and decide upon the connected cases with priority and urgency. If the decision of the regional administrative court is that there is a connection, the court that has jurisdiction over the case shall be stated in the decision and case files shall be sent to this court. The situation shall also be notified to the other court. The court that is empowered to examine the case shall notify the situation to the persons concerned.

2. If the regional administrative court decides that there is no connection, case files shall be sent to the courts concerned.



Dismissal of Connection by Courts

Section 41.

If the claims concerning connections are dismissed, interlocutory decisions on this matter shall be notified to the parties. Parties may apply to the regional administrative court located in that region for the courts that are in the same judicial region, or to the Council of State for the actions prescribed in paragraphs 2 and 3 of Section 38, within fifteen days of the notification date. Upon the application, the problem shall be solved by the regional administrative court or the competent Division of the Council of State, according to the procedure shown in the above sections.

Other Principles about the Connected Cases

Section 42.

1. All procedural acts shall stop, until the administrative and tax court decides on the existence of connection or until the regional administrative court or the Council of State decides on the matter upon receiving the objection.

2. After the process concerning the connection has been finalised, the court that has jurisdiction over the cases or the Council of State shall resume the examination.

3. Decisions of the regional administrative court and the Council of State on the existence of connection are final.



Action upon Lack of Jurisdiction

Section 43.

1. If the administrative and tax courts dismiss a case, due to lack of jurisdiction, which falls within the scope of administrative justice, they shall send the case file to the Council of State or to the administrative or tax court that has jurisdiction over the case.

a)   In cases sent due to lack of jurisdiction, if the Council does not consider that the matter falls within its jurisdiction, it shall decide to send the case file to the court that has jurisdiction over the case.

b)   When the court, to which the case file was sent after the lack of jurisdiction decision, does not consider that the matter falls within its jurisdiction, if the mentioned court and the court that has rendered the first lack of jurisdiction decision are bound to the same regional administrative court, dispute shall be resolved by the regional administrative court. In all other cases dispute shall be resolved by the Council of State.

2. The courts concerned shall be informed about the decisions of the Council of State and regional administrative courts concerning jurisdiction disputes. Decisions shall also be notified to the parties.

3. Decisions of the Council of State and the regional administrative court concerning jurisdiction disputes are final.

4. In cases where a new action is brought to the court that has jurisdiction over the case pursuant to the provisions of the present Act, no additional fees shall be imposed.

5. (Repealed: 5/4/1990-3622/s. 27)



Determination of the Competent Authority

Section 44.

1. When there exists a material or legal difficulty for the competent court to review the case or there exist doubts about the borders of judicial regions of two courts or when two courts decide that they have jurisdiction over the case, upon the request of the parties or the courts, case files shall be sent,

a)   if the dispute arises at a court or between the courts located in the same judicial region, to the regional administrative court located in that region;

b)   in all other cases, to the Council of State.

for the determination of the competent court.

2.  The Council of State and the regional administrative court shall determine the competent court.

3. Decisions of the Council of State and the regional administrative court on this matter shall be final.



PART THREE

Application to Higher Courts against Decisions

Objection
Section 45.

1. (Amended: 8/6/2000-4577/s. 7) Even if there is a provision contrary to the present section in other acts, an objection might be brought to the regional administrative court located in the judicial region of the courts concerned against the decisions rendered by a single judge and the final decisions of the administrative and tax courts given concerning disputes arising from

a)   Acts relating to the failure of students of primary and secondary education in exams and the assessment of their grades,

b)   Acts of the governorship, county governorship, local administrative bodies and provincial administration of ministries and other public establishments and institutions concerning temporary appointment or disciplinary suspension of public servants, their allowances, leaves and residence provided them by the authorities,

c)   Application of the Act on the Prevention of Infringement to the Possession of Immovables, no. 3091,

d)   Application of the Act on Granting Monthly Allowance to Destitute, Powerless and Lonely Turkish Citizens Exceeding the Age of 65, no 2022 and applications relating to monthly allowances granted by public establishments and institutions for the purpose of social aid and other social aids provided under the Support of Social Co-operation and Solidarity Act, no. 3294,

e)   Closure penalties imposed on work-places according to the Tax Procedure Act, no. 213.

2. (Amended: 8.6.2000-4577/s. 7) Time-limit for the objections made against the decisions of administrative and tax courts pursuant to the paragraph above shall be thirty days from the day following the notification date.

3. Objection shall be subjected to the procedure and form of appeal.

4. If the regional administrative court, as a result of the examination made on the basis of file, concludes that the information obtained about the facts is sufficient or if the objection concerns merely points of law or if the errors in fact can be rectified, a decision on the merits shall be rendered. Otherwise, it shall render a new decision on the merits after carrying out the necessary examination and investigation. (Added sentence: 5/4/1990-3622/s. 15) However, if the objections made against the decisions given as a result of preliminary examination are accepted or if the case was reviewed by a judge who has no jurisdiction over the case, the regional administrative court shall dismiss the decision and send the case file back to the court. Decisions of the regional administrative courts on these matters are final.

5. Decisions of the regional administrative court are final, appeal cannot be brought against its decisions.

6. (Amended: 8/6/2000-4577/s. 7) The judge who rendered the decision or participated in the decision that is the subject of the objection cannot take part in the sessions of the regional administrative court which review the same case brought before it with an objection.



Appeal

Section 46. (Amended: 5/4/1990-3622/s. 16)

1. Even if there is a provision contrary to the present section in other acts, an appeal might be brought to the Council of State against the judgments of the judicial divisions of the Council of State and administrative and tax courts.

2. (Amended: 10/6/1994-4001/s. 20) Provided that a special time-limit is not prescribed in specific acts, an appeal might be brought to the Council of State against the judgments of the judicial divisions of the Council of State and administrative and tax courts within thirty days from the notification date.



Decision againt which Appeal cannot be Brought

Section 47

(Amended: 8/6/2000-4577/s. 8) Appeal cannot be brought against the decisions of the administrative and tax courts about which the remedy of objection is available.



Petition of Appeal
Section 48 (Amended: 5/4/1990-3622/ s. 17)

1.   Appeals shall be made with a petition written to the Presidency of the Council of State.

2.   Petitions of appeal must be prepared in accordance with the principles laid down in section 3. If the petition is not prepared in this way, the person concerned shall be notified by the Council of State or the court which rendered the judgment that he must complete of the deficient parts within fifteen days. If the deficiencies are not rectified in this time limit the Council of State or the court shall decide that an appeal has not been brought.

3.   Petitions of appeal, subject to the relevance, shall be given to the court that rendered the judgment, to the Council of State or to the authorities stated in Section 4. The petition shall be notified to the adverse party by the court that rendered the judgment or by the Council of State. The adverse party may file its answer within thirty days from the notification date. Even if it/he did not bring its appeal within the limit, the answering party may appeal against the judgment in his petition of answer. In this case these petitions shall be regarded as petition of appeal.

4.   (Amended: 10/6/1994-4001/s. 21) The Division of the Council of State or the court that rendered the judgment, after the petition of answer is filed or after the time-limit for the answer expired, shall send the file to the Council of State or to the Plenary Session in order of the list.

5.   Petitions of appeal that include request for the stay of execution, before being notified to the adverse party, shall be sent to the Presidency of the Council of State by the court that rendered the decision and in actions where the Council of State serves as a first instance court, shall be sent to the Plenary Session of the Administrative Law Divisions or the Tax Law Divisions by the competent Division, depending on the subject of the action, to be decided on the demand of stay execution. After a decision is rendered on the request of stay of execution by the competent Division or Plenary Session at the Council of State, the notification shall be made and the file shall be prepared for the decision by this Division or Plenary Session.

6.   If the whole of the required fees and expenses were not paid while filing the petition of appeal, the president of the court or the Division of the Council of State that had rendered the decision shall inform the appellant, with a written notification, that he must complete the remaining part of the fees within fifteen-day period and that otherwise his appeal would be deemed withdrawn. If the fees and expenses are not completed within the time-limit, the court or the Division of the Council of State that reviews the case as a first instance court shall decide that the appeal has not been brought. If the appeal is brought beyond the time limit laid down by the law, the court that rendered the decision or the Division of the Council of State that reviews the case as a first instance court shall also dismiss the appeal. An appeal against this type of decisions of the Court or the Division of the Council of State and against the decisions as to the dismissal of the appeal given pursuant to the second paragraph of the present section might be brought within seven days from the notification date.

7.   (Added: 10/6/1994-4001/s. 21) In case that it is determined by the relevant Division or Plenary Session of the Council of State, to which the case file was sent, that the required fees and expenses were not paid while filing the petition of appeal, or that the petition has not been prepared in accordance with the principles laid down in section 3 or that the appeal was brought after the legal time expired, decisions mentioned in the second and sixth paragraphs shall be given by the Division and Plenary Session.



Reversal of Decision

Section 49.

1.   As a result of appellate review, the Council of State shall set aside the decision examined because of the following reasons:

a)   the court lacked jurisdiction,

b)   the decision is against the law,

c)   procedural provisions were not complied with.

2. (Amended: 5/4/1990-3622/s. 18) If it is possible to rectify the errors concerning the facts, the decision shall be upheld with the corrections made on the errors.

3. (Amended: 5/4/1990-3622/s. 18) In case of reversal, the case file shall be sent to the court that rendered the decision. The court shall give priority to the examination of this case, complete the investigation, if required, and renew its decision.

4. The Court may not obey the reversal decision and insist on its previous judgment. If the person concerned brings an appeal against the decision of persistence, the case shall be reviewed at the Plenary Session of the Administrative Law Divisions or the Tax Law Divisions, according to the subject of the case. If the decision of the relevant Division of the Council of State is approved, the judgment of the Court shall be overruled, otherwise the judgment shall be upheld. Decisions of the Plenary Session of the Administrative Law Divisions or the Tax Law Divisions of the Council of State are binding.

5. If the judgments are partly upheld and partly overruled, the part that becomes final shall be declared in the decision of the Council of State.

6. (Added: 5/4/1990-3622/ s. 18) Paragraphs of the present section, except the fourth paragraph, shall apply to the examination of appeals made against the decisions given by the Council of State as a first instance court by analogy.



Actions upon the Appellate Decision

Section 50. (Amended: 5/4/1990-3622/s. 19)

The decision given as a result of appeal review shall be sent to the Court or Division of the Council of State that rendered the judgment along with the case file. This decision shall be sent to the parties within seven days of the arrival to the court or Division of the Council of State.









Reversal for the Public Benefit

Section 51

1.        (Amended: 5/4/1990-3622/s. 20) Among decisions of the regional administrative courts, decisions of administrative and tax courts and of the Council of State, rendered as a first instance court, that has become final without appellate revision, those whose nature is in contradiction with the law in force might be appealed against by the Chief Advocate General, upon the request of the ministries concerned or of his own motion, for the public benefit.

2.        (Amended: 5/4/1990-3622/s. 20) If the appeal request is approved, the decision shall be reversed for the public benefit. This reversal decision shall not remove the legal consequences of the judgments of the court or of the Council of State which became final earlier.

3.        A copy of the reversal decision shall be sent to the ministry concerned and the decision shall be promulgated in the Official Gazette.



Stay of Execution in Appeals and Objections

Section 52.

1.        (Amended: 5/4/1990-3622/ s. 21) The fact that an objection or appeal is brought shall not stay the execution of the decisions of the judge, Court or the Council of State. However, the Division or the Session of the Council of State authorised to review the appeal and the regional administrative court authorised to listen to review the objection may decide to stay the execution of this decision in return for on the condition that a financial guarantee deposited. (Added sentence: 10/6/1994-4001/s. 22) In appeals made against the decision of dismissal of the action, in order to give a stay of execution order, conditions laid down in section 27 must be met.

2.        Financial guarantee might not be asked in annulment actions.

3.        Financial guarantee shall not be asked from the administration and those to whom free legal aid is granted.

4.        Reversal of the decision shall automatically stay its execution.



Renewal of the Trial

Section 53.

1.   (Amended first sentence: 5/4/1990-3622/s. 22) ) Renewal of the decisions rendered by the Council of State, regional administrative, administrative and tax courts may be requested due to one of the reasons stated below.

a)   Obtaining of a document after the rendition of the judgment, which could not have been obtained due to force majeure or actions of the person in favour of whom the decision was rendered,

b)   The fact that it has been decided that the document upon which the judgment was based is fraudulent, or its fraudulence has been confessed before a court or an official authority, or although the decision about the fraudulence of the document was rendered before the judgment, the person who demands the renewal of the trial was not aware of it on the date of the decision,

c)   Removal of a court decree, upon which the judgment was based, by a finalised reversal decision,

d)   The fact that it has been proved by a Court decision that the expert deliberately gave a false testimony,

e)   The fact that the party in favour of which the decision was rendered used fraud to affect the judgment,

f)     The fact that the case was tried before the persons who are not counsels or legal representatives of the parties and decided upon after this trial,

g)   The fact that the decision was rendered by a panel including the president, member or judge who must have withdrawn,

h)   (Amended: 10/6/1994-4001/s. 23) The fact that although there is no legal basis to retry a case upon which a judgment had been previously rendered involving the same parties, subject and cause, the same court or another court rendered a new judgment conflicting with the previous judgment.

ı) (Amended: 15/7/2003-4928/ s. 6) The fact that the European Court of Human Rights has determined by a final judgment that the decision of the domestic court leads to the violation of the Convention for the Protection of Human Rights and Fundamental Freedoms or its Protocols.

2.   Requests for new trial shall be adjudicated by the court that rendered the judgment.

3. (Amended first sentence: 15/7/2003-4928/s. 6) The time limit for new trial shall be ten years for the reason stated in subparagraph 1/h, shall be one year from the day which the final decision of the European Court of Human Rights is rendered for the reason stated in subparagraph 1/ı and sixty days for all other reasons. These limits shall run from the day following the date that the reason is materialised for the person who made the request.



Revision of Judgment

Section 54.

1. (Amended first sentence: 5/4/1990-3622/s. 23) In cases:

a)   where the allegations and objections affecting the basis of the judgment has not been addressed,

b)   where there are conflicting parts in the conclusion,

c)   where the decision is not in line with the procedural rules and the law,

d)   (Amended: 5/4/1990-3622/s. 23) where fraud and forgery made on the documents affecting the basis of the judgment has been brought to the light,

the parties might demand, for once, the revision of the decisions of the Judicial Divisions and Plenary Sessions of Tax and Administrative Divisions of the Council of State rendered upon appeal as well as the decisions of the regional administrative courts rendered upon objection, within fifteen days from the notification date.

2.   (Amended: 5/4/1990-3622/s. 23) Judicial Divisions and Plenary Sessions of Tax and Administrative Divisions of the Council of State and the regional administrative courts shall be bound with the reasons stated in the request for revision of judgment.

3.   (Amended: 10/6/1994-4001/s. 24) Requests for revision of judgment shall be examined by the division, session or regional administrative court that rendered the judgment on merits. Those who served as judge rapporteur in the examination of the file, cannot act in the same position in the examination of requests made for the revision of judgment.



Special Provisions Concerning Renewal of the Trial and Revision of Judgment

Section 55.

1. If the subject matter of the request falls within the jurisdiction of another division or court, the decision shall be given by this division or court.

2. After the defence of the adverse party is received, requests shall be examined and if the reasons written in the law exist, the case shall be re-examined and decided upon.

3. (Amended: 10/6/1994-4001/s. 25) If the requests for renewal of the trial and revision of judgment are not based on the reasons prescribed by law, the request shall be dismissed.

The competent division or court shall decide whether to conduct hearings in the requests for new trial and revision of judgment.

4.   Provided that the provisions of the 53., 54. and the present section are reserved, other provisions of the present Act shall apply to the requests for new trial and revision of judgment.



PART FOUR

Miscellaneous Provisions



Withdrawal and Challenge in the Council of State

Section 56.

1. In the case that the president or a member withdraws from the judicial division examining the case or that a challenge is made against them, board of that division, not including the withdrawn or challenged person, shall be completed to examine this matter. If the requests concerning withdrawal and challenge is approved, this board shall also decide on merits.

2. If more than two members withdraw or being challenged, request on this matter shall be examined in the Plenary Session of the Administrative Law Divisions for the president and members of administrative law divisions and in the Plenary Session of the Tax Law Divisions for the president and members of tax law divisions. The president and members who withdraw from the case or who are challenged cannot participate in these sessions. If the request on withdrawal or challenge is approved by these sessions, the session shall also decide on merits.

3. In the case that the president and some members of the Plenary Session of the Administrative Law Divisions and the Plenary Session of the Tax Law Divisions withdraw or they are challenged their positions shall be filled from other judicial divisions.

3.   The number of requests for withdrawal or challenge cannot exceed the number that prevents the meetings of the Plenary Sessions of the Administrative Law and Tax Law Divisions.

4.   Judge rapporteurs and advocates general of the Council of State might withdraw stating their reasons. They might also be challenged by the parties. Requests concerning their withdrawal and challenge shall be examined and decided upon by the division competent to review the case.



Withdrawal and Challenge in Courts

Section 57.

1. In actions examined by a single judge, challenges made against the judge shall be resolved by the administrative or tax court, excluding the challenged judge.

2. The challenge made against the president and members of the regional administrative court examining the case upon objection and administrative and tax courts examining the case as a first instance court shall be reviewed by the regional administrative court or administrative and tax court, excluding the challenged president or member.

3. If more than one member is challenged in the administrative and tax courts, request on this matter shall be examined by the regional administrative court. If more than one member is challenged in the regional administrative court, request on this matter shall be examined by the Council of State.

4. If the requests on challenge is approved by the Council of State or by these courts, it shall also be decided on merits.

5. In case of withdrawal from the action, provisions above shall apply to the assignment of a new judge, filling the position of the withdrawing judge and to the determination of the competent court.

Obtaining Evidence in Administrative Suits

Section 58.

1.   After the action is brought, parties can demand the obtainment of evidence about the action only from the Council of State, administrative and tax court examining the action.

2.   If the Council of State, administrative or tax court examining the case finds the request admissible, it may either assign one of members for this matter or decide that the local administrative or ordinary court should obtain the evidence.

3.   Requests about obtaining evidence shall be decided urgently.



Travel Expenses, Compensation and Daily Wages

Section 59.

1.   Travel expenses and daily wages, amounting one-thirtieth of the net salary for each day shall be given to those who are assigned for inspection, expert examination or obtaining of evidence among members of the Council of State and judges and advocates general of administrative justice serving at the Council of State. If those wages do not cover the necessary expenses, the difference shal also be paid, provided that the expenses are documented. However, payments that will be made in this way cannot exceed the half of the daily wages.

2.   (Amended: 10/6/1994-4001/s. 26) The Act on the Payment of Travel Expenses and Compensation to the Judicial Staff and to Persons Following State Actions, no. 3717 and the Act on the Revocation of a section of the Fees Act, no. 492 shall apply to the travel expenses and compensation of the judges and other staff of the regional administrative, administrative and tax courts.



Notification and Fees

Section 60 (Amended: 5/4/1990-3622/s. 24)

All of the notifications of the Council of State, regional administrative, administrative and tax courts shall be made pursuant to the provisions of the Notification Act. Fees for the notification made under this procedure shall be paid in advance.



Judicial Recess

Section 61.

1. (Amended: 5/4/1990-3622/s. 25) (Amended first sentence: 10/6/1994-4001/s. 27) The regional administrative, administrative and tax courts shall break for a recess from the twentieth of July to the twenty-first of August every year. However, administrative and tax courts that are located out of the centre of the province of the regional administrative court under whose judicial region they serve shall not break for the recess. These courts shall continue to work without being subjected to the restriction laid down under section 62.

2. During the recess period; an on duty court composed of three judges appointed among the presidents and members of administrative and tax courts shall be constituted in the centre of every regional administrative court by the Supreme Council of Judges and Public Prosecutors, upon the request of the president of the regional administrative court. The highest-ranking president on duty, if there is no president in the board, the highest-ranking member on duty shall become the president of the on duty court.

3. (Amended: 10/6/1994-4001/s. 27) The right to annual leave of those who stay on duty in the recess period is reserved.



Functions of On Duty Court

Section 62.

The on duty court shall deal with the following matters in the recess period:

a)   matters concerning stay of execution and obtaining evidence,

b)   matters that must be resolved in a certain period according to law.



Repealed Provisions

Section 63.

Provisions between sections 379 and 412 of the Tax Procedure Act, concerning tax disputes, shall be repealed on the date the courts constituted under the present Act assume their functions.



Additional Section 1. (Amended: 8/6/2000-4577/s. 9)

The monetary limits stated in Section 17 of the present Act, shall increase proportional to the revaluation value determined and announced by the Ministry of Finance each year pursuant to Repeated Section 298 of the Tax Procedure Act, No. 213. The increase shall apply to the monetary limits of the previous year and shall be effective from the beginning of every calendar year. The part of the limits determined following this procedure that does not exceed ten million Turkish Liras shall not be taken into account in the revaluation.



Additional Section 2. (Added: 5/4/1990-3622/s. 26)

As to files concerning the loss of status of elected organs of the municipalities and provinces sent to the Council of State by the authorised bodies; if they concern the requests for the loss of presidency of the municipal presidents after receiving the defence of the president within fifteen days, if they concern the dissolution of municipal councils and provincial general councils after receiving the defence of deputy president of the Council within fifteen days or in case that they do not present their defence in this time-limit after the time-limit for filing a defence has expired, the files shall be deemed ready for decision. Time-limits for decisions laid down by the law shall run from this date. The file shall be decided on the bases of written evidence.

An objection might be brought to the Plenary Session of the Administrative Law Divisions against those decisions within fifteen days from the notification date. Decision on the objection shall be rendered within a month. Decisions given upon objection shall be final.



Additional Section 3. 

(Added: 5/4/1990-3622/s. 26: Annulled by the judgment of the Constitutional Court dated 1/10/1991, no. E. 1990/40, K. 1991/33)



Provisional Section 1.

In the application of this Act, provisions of the Constitutional Order Act, No. 2324, dated 27/10/1980 are reserved.



Provisional Section 2.

Until the new Constitution comes into force and legal arrangements about the Supreme Council of Public Accounts are concluded, actions brought against the judicial decisions of the Supreme Council of Public Accounts shall be beyond the jurisdiction of administrative justice authorities.



Provisional Section 3. (Added: 23/7/1995-4124/s. 1)

Until the amendment concerning the judicial recess of ordinary courts comes into force, the recess period, which is reduced to thirty-two days under Act no. 4001, dated 10/6/1994, shall be between the twentieth of July and the end of working hours of the fifth of September of the year.



Provisional Section 4. (Added: 8/6/2000-4577/s. 11)

Among the final decisions rendered about the disputes stated in the amended paragraph one of section 45 of the present Act, those rendered before the amendment came into force and those rendered by the court whose first decision on the case was reversed by the Council of State might be appealed against to the Council of State.



Coming into force

Section 64.

The present Act shall become effective upon the date of publication.



Execution
Section 65.

The provisions of the present Act shall be executed by the Council of Ministers.









Provisions that cannot be Inserted into the Main Text of the Act No. 2577, dated 6/1/1982

1- Provisional Section of the Act no 3622, dated 5/4/1990

Provisional Section

a)       One-year period stated in the provision of this Act that amends the third paragraph of Section 26 of the Procedure of Administrative Justice Act, no. 2577, shall run from the date the present Act enters into force.

b)       Actions brought before the date that the provisions of this Act amending Section 33 and 35 of the Procedure of Administrative Justice Act, no. 2577, entered into force shall be finalised in the same courts.

c)        The provision of this Act that amends the appeal time-limit provided under the second paragraph of section 46 of the Procedure of Administrative Justice Act, no. 2577, shall apply to the appeals made against the final decisions rendered after the present Act enters into force.

d)       An appeal might be brought against the final decisions of the Council of State rendered as a first instance court, after the present Act enters into force. However, requests for revision of judgment made against the decisions given as the first instance court before the present Act enters into force shall be examined in the Division concerned.









Provisional Sections of the Act no 4001, dated 10/6/1994

Provisional Section 1.

The provisions of this Act that amend the first and fourth paragraphs of Section 28 of the Procedure of Administrative Justice Act, no. 2577, shall apply to the decisions rendered after the present Act comes into force.



Provisional Section 2.

(Annulled by the judgment of the Constitutional Court dated 21/9/1995, no. E. 1995/46, K. 1995/49)
#95
PUBLIC INTERNAL AUDIT STANDARDS

Public internal audit standards have been determined by the Internal Audit Coordination Board (the Board) as per line (a) of the first paragraph of Article 67 of Law No. 5018. Pursuant to paragraph (1) of Article 9 of the Regulation on Working Procedures and Principles of Internal Auditors, internal auditors are obliged to abide by these standards.
Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve a public administration's operations by evaluating whether the resources are managed according to the principles of economy, efficiency and effectiveness and providing guidance. This activity is carried out according to generally accepted standards and through a systematic, continuous and disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
In the determination of Public Internal Audit Standards (Standards), "The International Standards for the Professional Practice of Internal Auditing" of the International Institute of Internal Auditors (IIA) have been taken as a basis, and we have benefited from other international audit standards. Standards define the attributes of internal auditors and the processes required to be carried out in internal auditing activity.
Standards regulate issues concerning planning, performing and reporting of internal audit and competent, honest, impartial and independent working of internal auditors.
Standards aim to increase the added value of internal audit through defining the basic principles for implementation of internal audit, providing a framework for practice, establishing the basis for evaluation of the quality of internal audit, and fostering the improvement of organizational operations and processes.
For acceptance of quality of internal audit within and outside the public administration, it is of great importance that Standards and Professional Code of Ethics are well understood by the internal auditors and they are adhered to during the performance of internal auditing activity.
It is mandatory for the managers of internal audit units and internal auditors to comply with these standards and codes. In cases which are not foreseen in the standards, the practice advisories of "International Standards for the Professional Practice of Internal Auditing" determined by the IIA shall be followed.
Standards are composed of attribute standards and performance standards. Attribute standards are related to the characteristics that the internal audit unit and internal auditors should posses while the performance standards are related to the stages of internal audit activity and their results. 

ATTRIBUTE STANDARDS
1000- Purpose, Authority and Responsibilities
The purpose, authority, and responsibilities of the internal audit unit/activity should be defined in a charter to be issued upon the approval of the head of public administration for every public administration consistent with the definition of internal audit and these Standards.
In order to ensure that the purpose, authority and responsibilities defined in the charter reach the internal audit unit/activity objectives and that internal audit activities are carried out in accordance with these standards, the chief audit executive shall review the audit charter periodically, assess whether new arrangements are necessary, inform the head of public administration of results of the assessment and provide suggestions on the required changes.
1000.G1 - The nature of assurance services provided to the organization should be defined in the audit charter. If assurances are to be provided to parties outside the organization, the nature of these assurances should also be defined in the charter.
1000.D1 - The nature of consulting services should be defined in the audit charter.
1100 – Independence and Objectivity
The internal audit activity should be independent, and internal auditors should be objective in performing their work.
The internal audit unit/activity should be independent from the audited units/activities in a way to facilitate the internal auditors provide impartial and effective recommendations and professional judgement while performing their duties.
1110 – Organizational Independence
The internal audit unit shall be directly affiliated to the head of public administration.
1110.G1 - The internal audit activity should be free from any kind of interference in determining the scope and subject of internal auditing, performing work, and reporting results.
1120 – Individual Objectivity
Internal auditors should have an impartial, unbiased attitude and avoid conflicts of interest.
1130 - Impairments to Independence or Objectivity
If independence or objectivity  is impaired in fact or appearance, the details of the impairment  should be disclosed to appropriate parties. The nature of the disclosure will depend upon the impairment.
In the event that internal auditors face with a situation that may impair their independence and objectivity during the performance of audit work, they shall notify the chief audit executive in writing.
Taking into consideration that long term audit on the same area or subject may impair objectivity in engagements, auditors and audit engagements should be subject to rotation from time to time.
1130.G1 - Internal auditors should refrain from assessing specific operations for which they were previously responsible or acted as the manager. Objectivity is presumed to be impaired if 

an internal auditor provides assurance services for an activity for which the internal auditor had responsibility within the previous year.
1130.G2 - Assurance engagements  for functions over which the chief audit executive has responsibility should be overseen by the head of public administration in cases where the chief audit executive carries out audit engagement.
1130.D1 - Internal auditors may provide consulting services relating to operations for which they had previous responsibilities.
1130.D2 - If internal auditors have potential impairments to independence or objectivity relating to proposed consulting services, disclosure should be made to the engagement client prior to accepting the engagement.
1200 – Proficiency and Due Professional Care
Engagements should be performed with proficiency and due professional care.
1210 – Proficiency
Proficiency expresses having knowledge and skills required for the engagement, ability to collect sound data and evidence about audit subjects and review, assess and report them.
Internal auditors should possess the knowledge, skills, and other competencies needed to perform their individual responsibilities. The internal audit unit should possess the necessary institutional competency.
1210.G1 – In order to ensure the achievement of engagement objectives, the chief audit executive should obtain competent advice and assistance from experts outside the organization if the internal audit staff lacks the knowledge, skills, or other competencies needed to perform all or part of the engagement.
1210.G2 - The internal auditor should have sufficient knowledge to identify the indicators of fraud  but is not expected to have the expertise of persons such as the prosecutor or the police whose primary responsibility is detecting and investigating fraud.
1210.G3 - Internal auditors should have knowledge of key information technology risks and controls and available technology-based audit techniques to perform their assigned work. However, not all internal auditors are expected to have the expertise of an internal auditor whose primary responsibility is information technology auditing.
1210.D1 - The chief audit executive should decline the consulting engagement or obtain competent advice and assistance if the internal audit staff lacks the knowledge, skills, or other competencies needed to perform all or part of the engagement.
1220 - Due Professional Care
Internal auditors should apply the care and skill expected of a reasonably prudent and competent internal auditor and should possess necessary knowledge and skills to ensure achievement of audit objectives. Due professional care does not imply infallibility.
1220.G1 – The internal auditor should exercise due professional care by considering the;
• Extent of work needed to achieve the engagement's objectives , 

• Relative complexity, materiality, or significance of matters to which assurance procedures are applied,
• Adequacy and effectiveness of risk management, control , and governance processes ,
• Probability of significant errors, irregularities, or noncompliance,
• Cost of assurance in relation to potential benefits.
1220.G2 - In exercising due professional care the internal auditor should use computer-assisted audit tools and other data analysis techniques as far as possible.
1220.G3 - The internal auditor should be alert to the significant risks  that might affect objectives, operations, or resources. However, assurance procedures alone, even when performed with due professional care, do not guarantee that all significant risks will be identified.
1220.D1 - The internal auditor should exercise due professional care during a consulting engagement by considering the:
• Needs and expectations of clients, including the nature, timing, and reporting of engagement results,
• Relative complexity and extent of work needed to achieve the engagement's objectives,
• Cost of the consulting engagement in relation to potential benefits.
1230 - Continuing Professional Development
Internal auditors should continuously enhance and strengthen their knowledge, skills, and other professional competencies.
Head of public administration and chief audit executive should take necessary measures for professional development of internal auditors, for them to follow innovations and to increase willingness to work.
Considering the limits of internal audit activity, sufficient number of internal auditors in terms of education level, qualification and experience should be employed in the internal audit unit. Internal auditors should be provided relevant training for the duty and should continue their professional competencies through continuous appropriate training programs.
1300 - Quality Assurance and Improvement Program
Quality assurance and improvement program is the program for the assessment done by the internal audit unit and the Board of the internal audit activity performed in the relevant public administration in terms of all its aspects and for monitoring and improving its compliance to standards and professional code of ethics.
The chief audit executive should develop and maintain a quality assurance and improvement program that covers all aspects of the internal audit activity, continuously monitors its effectiveness and that is in compliance with the regulations of the Board. This program includes periodic internal and external quality assessments and ongoing internal monitoring. Each part of the program should be designed to help the internal auditing activity add value  and improve the organization's operations and to provide assurance that the internal audit activity is in conformity with the Standards and the Code of Ethics . 

1310 - Quality Program Assessments
The chief audit executive should develop a program to monitor and assess the overall effectiveness of the quality program. The program should include both internal and external assessments.
1311 - Internal Assessments
Internal assessments should include;
• Ongoing reviews of the performance of the internal audit activity; and,
• Periodic reviews performed through self-assessment or by other persons within the organization, with knowledge of internal auditing practices and the Standards.
Chief audit executive should establish principles on internal quality reviews on internal audit activity that will be performed periodically.
Internal reviews should assess the quality of internal audit activity, its conformity to standards and audit manual of the internal audit unit, management of added value to the administration and whether the performance indicators have been achieved.
Chief audit executive should provide the internal assessment results made within the framework of quality assurance and improvement program in the annual activity report and should present information to the senior management at least once annually.
1312 - External Assessments
External assessments should be conducted at least once every five years by a qualified, independent reviewer or review team from outside the organization appointed by the Board.
Those performing external assessments should have no obligation against the organization under review or the personnel of the organization and should have no interest related to the organization. Mutual external assessments between two organizations should not be carried out.
Issues such as the field of work of internal audit, its independence and objectivity, its adequateness in terms of quantity and quality, efficiency and effectiveness of its approach to formulate strategy and programs, its conformity to Standards and regulations by IACB, other legislation and the unit's own audit manual, its added value to the organization, achievement of performance indicators and quality of supervision in internal auditing should form the scope of external assessment.
Following the assessment of results together with the chief audit executive, the head of public administration should prepare an action plan to eliminate weaknesses that are identified and agreed. Such developments in the action plan should be indicated in the annual activity plan.
1320 - Reporting on the Quality Program
The chief audit executive should send the external assessment results and action plan to the Board and if any, to the executive board.
1330 - Use of "Conducted in Accordance with the Standards"
Internal auditors should indicate that internal audit activities are "conducted in accordance with the Standards for the Professional Practice of Internal Auditing." However, internal auditors may 

use the statement only if assessments of the quality improvement program are carried out and demonstrate that the internal audit unit/activity is in compliance  with the Standards No 1312.
1340 - Disclosure of Noncompliance
By principles, internal audit activity should be performed in full compliance with standards and professional code of ethics for internal auditors. However, in instances where full compliance cannot be achieved, when noncompliance impacts the overall scope or operation of the internal audit activity, disclosure should be made to the Board, senior management and if any, the executive board. 

PERFORMANCE STANDARDS
2000 - Managing the Internal Audit Activity
The chief audit executive  should effectively manage the internal audit activity to ensure it adds value  to the organization.
The chief audit executive is responsible for fulfilling the general goals and responsibilities defined in the internal audit charter, utilization of internal audit resources in an effective, efficient and productive way and for managing the internal audit unit to ensure that internal auditing activity is performed in conformity with the Standards.
2010 - Planning
The chief audit executive should establish risk-based plans to determine the priorities of the internal audit activity, consistent with the organization's goals.
2010.G1 - The internal audit activity's plan and program should be based on a risk  assessment, undertaken at least annually. The input of senior management and if any, the executive board should be included in this process and their opinion should be obtained.
2010.D1 - The chief audit executive should consider accepting proposed consulting engagements based on the engagement's potential to improve management of risks, add value, and improve the organization's operations as well as its effects on the implementation of annual audit plan. Those engagements that have been accepted should be included in the program.
2020 - Communication and Approval
The chief audit executive should communicate the internal audit activity's plans and resource requirements, including significant interim changes, to senior management and if any, to the executive board for review and approval. The chief audit executive should also communicate the impact of resource limitations.
2030 - Resource Management
The chief audit executive should ensure that internal audit resources are appropriate, sufficient, and effectively deployed to achieve the approved audit program.
2040 - Policies and Procedures
The chief audit executive should establish policies and procedures to guide the internal audit activity.
2050 - Coordination
The chief audit executive should share information and coordinate activities with other internal and external providers  of relevant assurance and consulting services  to ensure proper coverage and minimize duplication of efforts.
2060 - Reporting to the Head of Public Administration and Management Board
The chief audit executive should report periodically to the senior management and if any, to the executive board on the internal audit activity's purpose, authorities, responsibility, and performance relative to its program. Reporting should also include significant risks, control  and 

governance issues, and other matters needed or requested by the senior management and if any, the executive board.
2100 - Nature of Work
The internal audit activity should evaluate and contribute to the improvement of risk management, control, and governance processes using a systematic and disciplined approach.
2110 - Risk Management
The internal audit activity should assist the organization by identifying and evaluating significant exposures to risk and contributing to the improvement of risk management and control systems.
2110.G1 - The internal audit activity should monitor and evaluate the effectiveness of the organization's risk management system.
2110.G2 - The internal audit activity should evaluate risk exposures relating to the organization's governance, operations, and information systems regarding the;
• Reliability and integrity of financial and operational information,
• Effectiveness and efficiency of operations,
• Safeguarding of assets,
• Compliance  with laws and other regulations.
2110.D1 - During consulting engagements, internal auditors should address risk consistent with the engagement's objectives and be alert to the existence of other significant risks.
2110.D2 - Internal auditors should incorporate knowledge of risks gained from consulting engagements into the process of identifying and evaluating significant risk exposures of the organization.
2120 - Control
The internal audit activity should assist the organization in maintaining effective controls by evaluating their effectiveness and efficiency and by promoting continuous improvement.
2120.G1 - Based on the results of the risk assessment, in order to eliminate the risks, the internal audit activity should evaluate the adequacy and effectiveness of controls encompassing the organization's governance, operations, and information systems and should recommend additional controls where necessary.
This evaluation should include;
• Reliability and integrity of financial and operational information,
• Effectiveness and efficiency of operations,
• Safeguarding of assets, and
• Compliance  with laws and other regulations.
2120.G2 - Internal auditors should ascertain the extent to which internal audit plan and program goals and objectives have been established and conform to those of the organization. 

2120.G3 - Internal auditors should review operations and programs to ascertain the extent to which results are consistent with established goals and objectives to determine whether operations and programs are being implemented or performed as intended.
2120.G4 – Appropriate and adequate criteria are needed to evaluate controls. Internal auditors should ascertain the extent to which management has established adequate criteria to determine whether objectives and goals have been accomplished. If adequate , internal auditors may use such criteria in their evaluation. If inadequate, internal auditors should work with management to develop appropriate evaluation criteria.
2120.D1 - During consulting engagements, internal auditors should address controls consistent with the engagement's objectives and be alert to the existence of any significant control weaknesses.
2120.D2 - Internal auditors should incorporate knowledge of controls gained from consulting engagements into the process of identifying and evaluating significant risk exposures of the organization.
2130 - Governance
The internal audit activity should make appropriate recommendations for improving the governance process es in its accomplishment of the following objectives:
• Promoting appropriate ethics and values within the organization,
• Ensuring effective organizational performance management and accountability,
• Effectively communicating risk and control information to appropriate units of the organization,
• Effectively coordinating the activities of and communicating information among the external and internal auditors and senior management.
2130.G1 - The internal audit activity should evaluate the design, implementation, and effectiveness of the organization's ethics-related objectives, programs and activities.
2130.D1 - Consulting engagement objectives should be consistent with the overall values and goals of the organization.
2200 - Engagement Planning
Internal auditors should develop and record a plan for each engagement, including the scope, objectives, timing and resource allocations. Such planning work should include the following elements.
2201 - Planning Considerations
In preparing an audit plan for each audit engagement, internal auditors should consider;
• The objectives of the activity to be audited and the means or criteria used to evaluate the performance in reaching these objectives,
• The significant risks to the activity, its objectives, resources, and operations and the means and methods by which the potential impact of risk is kept to an acceptable level,
• The adequacy and effectiveness of the activity's risk management and control systems compared to a relevant control framework or model, 

• The opportunities for making significant improvements to the activity's risk management and control systems.
2201.G1 - When planning an engagement for parties outside the organization, internal auditors should establish a written understanding with them about objectives, scope, respective responsibilities and other expectations ( including restrictions on distribution of the results of the engagement and access to engagement records).
2201.D1 - Internal auditors should establish an understanding with the manager to whom they will provide consultancy services about objectives, scope, respective responsibilities, and other client expectations. For significant engagements, this understanding should be documented.
2210 - Engagement Objectives
Engagement objectives should be established for each engagement. Engagement objectives should cover risks, controls and governance processes related to the audited activity.
2210.G1 - Internal auditors should conduct a preliminary assessment of the risks relevant to the activity under audit. Engagement objectives  should reflect the results of this risk assessment.
2210.G2 - The internal auditor should consider the probability of significant errors, irregularities, noncompliance, and other exposures when developing the engagement objectives.
2210.D1 - Consulting engagement objectives should address risks, controls, and governance processes to the extent agreed upon with the relevant manager.
2220 - Engagement Scope
The established scope of engagement should be sufficient to satisfy the objectives of the engagement.
2220.G1 - The scope of the engagement should include consideration of relevant systems, records, personnel, and physical properties ( including those under the control of third parties).
2220.G2 - If significant consulting requests are brought during an assurance engagement, the objectives, scope, respective responsibilities and other expectations as regards the engagement should be communicated to the internal audit unit with a letter. If deemed appropriate, the consultancy engagement should be carried out and the results communicated in accordance with consulting principles.
2220.D1 - In performing consulting engagements, internal auditors should ensure that the scope of the engagement is sufficient to address the agreed-upon objectives. If internal auditors develop reservations about the scope during the engagement, these reservations should be discussed with the relevant manager to determine whether to continue with the engagement.
2230 - Engagement Resource Allocation
Internal auditors should determine appropriate resources to achieve engagement objectives. Staffing should be based on an evaluation of the nature and complexity of each engagement, time constraints, and available resources.
2240 - Engagement Work Program
To ensure achievement of engagement objectives, internal auditors should develop work programs that indicate objectives, allocated resources, possible timing and processes in the auditing work for each engagement. These work programs should be made in writing. 

2240.G1 - Work programs should include and indicate the procedures for identifying, analyzing, evaluating, and recording information during the engagement. The work program should be approved prior to its implementation, and approval of the chief audit executive should be obtained for any adjustments to the program.
2240.D1 - Work programs for consulting engagements may vary in form and content depending upon the nature of the engagement.
2300 - Performing the Engagement
Internal auditors should identify, analyze, evaluate, and record sufficient information to achieve the engagement's objectives.
In performing their duties, internal auditors should apply the care and skill expected of a reasonably prudent and competent internal auditor. Due professional care is the application of skills, prudence and care expected of reasonably prudent and competent internal auditor in same or similar conditions and situations.
2310 - Identifying and Defining Information
Internal auditors should identify sufficient, reliable, relevant, and useful information to achieve the engagement's objectives.
Information and documents should be collected in all issues related to the objective and scope of engagement and should be sufficient, reliable, relevant and necessary to provide a sound and reliable basis for findings and recommendations.
2320 - Analysis and Evaluation
Internal auditors should base conclusions of engagement on appropriate analyses and evaluations.
2330 - Recording Information
Internal auditors should record relevant information that for the basis for conclusions and engagement results.
2330.G1 - The chief audit executive should control access to engagement records. The chief audit executive should obtain the approval of senior management and/or legal counsel prior to releasing such records to external parties, as appropriate.
2330.G2 - The chief audit executive should develop retention principles for engagement records. These retention principles should be consistent with the organization's guidelines and any pertinent legislation.
2330.D1 - The chief audit executive should develop policies governing the custody and retention of engagement records, as well as their release to internal and external parties. These policies should be consistent with the organization's regulations and any pertinent legislation or other requirements.
2340 - Engagement Supervision and Control
Engagements should be properly supervised and controlled to ensure objectives are achieved, quality is assured, and staff is developed.
2400 – Communicating Results 

Internal auditors should communicate the engagement results.
Reports should be kept confidential to prevent unauthorized access.
2410 –Criteria for Communicating
Communications should include the engagement's objectives and scope as well as applicable conclusions, recommendations, and action plans.
2410.G1 - Final communication of engagement results should contain the internal auditor's opinion and or conclusions.
2410.G2 - Internal auditors should be encouraged to acknowledge satisfactory performance in engagement communications.
2410.G3 - When releasing engagement results to parties outside the organization, the communication should include limitations on distribution and use of the results.
2410.D1 - Communication of the progress and results of consulting engagements will vary in form and content depending upon the nature of the engagement and the needs of the relevant manager.
2420 – Quality of Communications
Communications should be accurate, objective, clear, concise, constructive, complete, and timely.
2421 - Errors and Omissions
If a final communication contains a significant error or omission, the chief audit executive should communicate corrected information to all parties who received the original communication.
2430 - Engagement Disclosure of Noncompliance with the Standards
When noncompliance with the Standards impacts a specific engagement, communication of the results should disclose the:
• Standard(s) with which full compliance was not achieved
• Reason(s) for noncompliance, and
• Impact of noncompliance on the engagement
2440 – Disseminating Results
The chief audit executive should disseminate results of engagement to the appropriate parties.
2440.G1 - The chief audit executive is responsible for communicating the final results to parties who can ensure that the results are given due consideration.
2440.G2 – Unless otherwise stipulated in legal arrangements, before releasing the engagement results to parties outside the organization, the chief audit executive should assess the possible risks that might arise in the organization, have discussions with the senior management and/or legal counsel and control dissemination by restricting the use of the results.
2440.D1 - The chief audit executive is responsible for communicating the final results of consulting engagements to relevant managers. 

2440.D2 - During consulting engagements, risk management, control, and governance issues may be identified. Whenever these issues are significant to the organization, they should be communicated to the head of public administration and if any, to the executive board.
2500 - Monitoring Progress
The chief audit executive should establish and maintain a system to monitor the disposition of results communicated to management.
Managers of the audited unit should take measures related to the recommendations included in the audit report. If no measure is taken, the chief audit executive should inform the head of public administration.
2500.G1 - The chief audit executive should establish a follow-up process to monitor and ensure that management actions have been effectively implemented or that senior management has accepted the risk of not taking action and to monitor the developments.
2500.D1 - The internal audit activity should monitor the results of consulting engagements to the extent agreed upon with the relevant managers.
2600 - Management's Acceptance of Residual Risks
When the chief audit executive believes that senior management has accepted a level of residual risk that may be unacceptable to the organization, the chief audit executive should discuss the matter with senior management. If the decision regarding residual risk is not resolved, the chief audit executive and senior management should report the matter to the head of public administration for resolution. 


#96
Turkish PUBLIC FINANCIAL MANAGEMENT AND CONTROL LAW 

Code nr: 5018 , dated 10.12.2003
Official Gazetee Nr. 25326
Official gazette dated: 24/12/2003


FIRST PART

General Provisions

FIRST SECTION
Purpose, Scope and Definitions

Purpose

Article 1- The purpose of this Law is to regulate the structure and functioning of the public financial management, the preparation and implementation of the public budgets, the accounting and reporting of all financial transactions, and financial control in line with the politics and objectives covered in the development plans and programs, in order to ensure accountability, transparency and the effective, economic and efficient collection and utilization of public resources.
Scope
Article 2- This Law covers the financial management and control of public administrations within the scope of general government, encompassing public administrations within the scope of central government, social security institutions, and local administrations.
Without prejudice to the provisions of international agreements, the utilization and control of European Union funds and domestic and foreign resources allocated to public administrations shall be subject to the provisions of this Law.
(Amendment: 22.12.2005 - 5436/10-b art.) Regulatory and supervisory agencies are subject only to the Articles 3, 7, 8, 12, 15, 17, 18, 19, 25, 42, 43, 44, 47, 48, 49, 50, 51, 52, 53, 54, 68 and 76, 78 of this Law.
Definitions
Article 3- Particularly, in the enforcement of this Law;
a) Public administrations within the scope of general government: refer to public administrations within the scope of central government, social security institutions and local administrations, which are determined according to international standards.
b) Public administrations within the scope of central government: refer to public administrations in charts I, II and III of this Law.
c) Regulatory and supervisory agencies: refer to agencies defined in chart III of this Law.
d) Social security institutions: refer to public institutions defined in chart IV of this Law.
e) (Amendment: 22.12.2005 - 5436/10-a art.) Local administrations: refer to municipalities, special provincial administrations and to associations and administrations related to or established by them, or where they are a member which perform public activities with authorities limited to specific geographic regions and services.
f) Budget: refers to the document which indicates the revenue and expenditure estimations of a certain period and issues related to their realization, and which is put into force as required by the relevant procedures.
g) Public resources: refer to public revenues including those acquired through borrowing, and to movable and immovables, deposits, receivables and rights and all kinds of valuables, that all belong to the public.
h) Public expenditure: refers to public expenditures consisting of payments for the goods and services acquired and for the works done pursuant to their respective laws, social security contributions, interest payments of domestic and foreign debts, general borrowing expenditures, payments resulting from the discounted sale of borrowing instruments, economic, financial and social transfers, donations and grants, and other expenditures.
i) Public revenue: refers to taxes, levies, charges, holding funds, shares or similar revenues acquired pursuant to their respective laws, revenues from interests, surcharges and fines, all types of revenues acquired from movable and immovables, revenues obtained from services rendered, revenues from premium-sold borrowing instruments, deductions from social security premiums, donations and grants received, and other revenues.
j) Special revenue: refers to revenues indicated in the general budget, which are obtained from the activities, excluding public duties and services, stated in relevant laws of administrations within the scope of general budget, and which are acquired from deliveries of their priceable goods and services.
k) Spending unit: refers to the unit for which appropriation is allocated within the budget of the public administration, and which is authorized to spend.
l) Public financial management: refers to legal and administrative systems and processes that will ensure the effective, economic and efficient utilization of public resources in accordance with defined standards.
m) Financial control: refers to the control system, institutional structure, method and processes, which are established to ensure the effective, economic and efficient utilization of public resources in line with determined aims and the rules established by relevant legislations.
n) Strategic plan: refers to the plan which includes medium and long term goals, basic principles and policies, objectives and priorities and performance indicators of public administrations, as well as the methods and the resource distribution to achieve these.
o) Fiscal year: refers to the calendar year.


SECOND SECTION
Public Finance
Public Finance
Article 4- Public finance covers the collection of revenues, exercise of spending, financing of deficits and the management of public assets, debts and other liabilities.
Public finance is conducted according to the principles of centralized and decentralized management. The duties of public administrations are clearly defined in their relevant laws and taken as a basis for resource allocation.
Fundamental Principles of Public Finance
Article 5- Fundamental principles of public finance are as follows:
a) Public financial management shall be established and operated as a consistent whole.
   b) Public finance shall be administrated in a manner to ensure the accountability of public officials.
   c) Fiscal policy shall be formed and governed in concordance with macroeconomic and social objectives.
   d) Public financial management shall be conducted in line with the budget appropriated by the Turkish Grand National Assembly.
   e) Public financial management shall ensure fiscal discipline.
   f) Public financial management shall create the environment needed to develop the public choices in a manner to ensure economic, financial and social efficiency.
   g) In producing goods and services of public administrations and meeting their needs, it is required to make cost-efficiency or cost-benefit or other necessary economic and social analyses in accordance with the principles of economic or social efficiency.
Without prejudice to the provisions of relevant laws, the procedures and principles related to the implementation of the principles of public finance shall be defined and monitored by the Ministry of Finance.
Unity of Treasury
   Article 6- The revenues, expenditures, collections, payments, cash planning and debt management of public administrations within the scope of central government shall be administered so as to ensure the unity of treasury.
   All revenues of public administrations defined in chart I of this Law shall be deposited to the Treasury cash offices, and their expenditures shall be paid thereof. These administrations shall not have their own cash offices.
   The provisions of the Law No 4749 dated 28/3/2002 and the Law No 4059 dated 9/12/1994 shall apply to all kinds of domestic and foreign borrowings, foreign grants received, extension of loans and grants and relevant repayments, treasury guarantees, treasury receivables, cash management and other relevant issues.

THIRD SECTION
General Principles on the Utilization of Public Resources
Fiscal Transparency
Article 7- In order to ensure supervision in the acquisition and utilization of all types of public resources, the public shall be informed timely. Accordingly, the following are compulsory:

a)   To clearly define the duties, authorities and responsibilities,

b) To prepare government policies, development plans, annual programs, strategic plans and budgets; to negotiate them with the authorized bodies; to carry out their implementation and to make the implementation results and the relevant reports available and accessible to the public,

c) To publicize the incentives and subsidies provided by the public administrations within the scope of general government, in periods not exceeding one year,

d) To establish public accounts in line with a standard accounting system and an accounting order in accordance with generally accepted accounting principles.

Public administrations are responsible for making necessary arrangements and taking measures to ensure the fiscal transparency, which shall be monitored by the Ministry of Finance.


Accountability
Article 8- Those who are assigned duties and vested with authorities for the acquisition and utilization of public resources of all kind are accountable vis-à-vis the authorized bodies and responsible for the effective, economic and efficient acquisition, utilization, accounting and reporting of the resources on the basis of law, as well as for taking necessary measures to prevent the abuse of such resources.
Strategic Planning and Performance Based Budgeting

Article 9- In order to form missions and visions for future within the framework of development plans, programs, relevant legislation and basic principles adopted; to determine strategic goals and measurable objectives; to measure their performances according to predetermined indicators, and to monitor and evaluate this overall process, public administrations shall prepare strategic plans in a cooperative manner.

In order to present public services at the required level and quality, public administrations shall base their budgets and their program and project-based resource allocations on their strategic plans, annual goals and objectives, and performance indicators.

The Undersecretariat of State Planning Organization is authorized to determine the strategic planning calendar and the public administrations to be in charge of preparing strategic plans, and to set out the principles and procedures concerning the correlation of strategic plans with development plan and programs.

Public administrations shall prepare their budgets on performance basis and in concordance with the mission, vision, strategic goals and objectives included in the strategic plans. The Ministry of Finance is authorized to define the procedures and principles on the compatibility of administration budgets with the performance indicators stated in the strategic plans, and activities to be carried out by these administrations within this framework and other issues on performance based budgeting.

   The performance indicators that shall be jointly set by the Ministry of Finance, the Undersecretariat of State Planning Organization and relevant public administration shall be included in the budgets of these administrations. Performance audits are carried out in the framework of these indicators.

FOURTH SECTION
Accountability of Ministers and Heads of Public Administrations
Ministers
Article 10- The Ministers are responsible for implementing government policy and for ensuring the compliance of the preparation and implementation of strategic plans and budgets of their ministries and those of the administrations affiliated, related or associated to, with the development plans and annual programs. Ministers are also responsible for establishing the coordination and cooperation with other ministries in this framework. This responsibility is assigned to the Minister of National Education for Higher Education Council, universities and high technology institutes, and to the Minister of Interior for local administrations.
The Ministers are accountable vis-à-vis the Prime Minister and the Turkish Grand National Assembly for the effective, economic and efficient utilization of public resources.
(Amendment: 22.12.2005 - 5436/10-a art.) Ministers shall inform the public within the first month of every fiscal year about the goals, objectives, strategies, assets, liabilities and annual performance programs of their administrations.

Heads of Public Administrations
Article 11- Respectively, in ministries the undersecretary, in other public administrations the highest administrator, in special provincial administrations the governor and in municipalities the mayor is the head of public administration. In the Ministry of National Defense however, the Minister is the head of public administration.
The heads of public administrations are responsible for the preparation and implementation of the strategic plans and budgets of their administration in conformity with the development plan, annual programs as well as with the strategic plan and performance objectives and service requirements of the administration; for the effective, economic and efficient acquisition and utilization of the resources under their responsibility; for the prevention of losses and abuses of such resources; for monitor and supervision of the operation of financial management and control system; and for the accomplishment of the duties and responsibilities defined with this Law. Concerning all these responsibilities mentioned above, the heads of administrations are accountable to the Minister, and to their local councils in local administrations.
(Amendment: 22.12.2005 - 5436/10-c art.)The heads of administrations perform the requirement of this responsibility through authorizing officers, financial services units and internal auditors.

SECOND PART
Public Administration Budgets
FIRST SECTION
General Provisions
Budget Types and Scope
Article 12- The budgets of the administrations within the scope of general government shall be prepared and implemented in the form of central government budget, social security institution budgets and local administration budgets. No budget under any other name other than the foregoing shall be prepared by the public administrations.
Central government budget consists of the budgets of public administrations included in chart I, chart II and chart III of this Law. 
General budget refers to the budgets of public administrations, which are included in chart I of this Law and which are under the legal entity of the government.
Special budget refers to the budget of each public administration, which is included in chart II of this Law and established as affiliated or related to a ministry for the performance of a defined public service, to which revenues are allocated, and which is authorized to spend from such revenues, with the establishment and operation principles arranged through special law.
Regulatory and supervisory agency budget is the budget of each regulatory and supervisory agency, which is included in chart III of this Law and established in the form of board, agency or supreme board by special laws.
Social security institution budget refers to the budget of each public administration, which is included in chart IV and established by law to provide social security services.
Local administration budget refers to the budgets of public administrations within the scope of the local administration.
Budgetary Principles
Article 13- Following principles shall apply to the preparation, implementation and control of the budgets:
a) In the preparation and implementation of the budgets, it is essential to ensure macroeconomic stability together with sustainable development.
b) The spending authority vested to public administrations with the budget shall be exercised with a view to perform the duties and services stipulated in the laws.
c) The budgets shall be prepared, implemented and controlled in conformity with the policies, targets and priorities envisaged in the development plans and programs, and according to the strategic plans, performance criteria and cost-benefit analysis of the administrations.
d) Budgets shall be negotiated and evaluated together with the budget estimations of next two years by considering strategic plans.
e) (Amendment: 22.12.2005 - 5436/10-a art.) The budget shall provide a comprehensive and transparent view of the public fiscal operations.
f) All revenues and expenditures shall be indicated in the budgets with their gross values.
g) The practice of earmarking revenues for specific expenditure shall be strictly limited. 
h) It is essential that revenue and expenditure balance is ensured in the budgets.
i) Budgets cannot be implemented unless they are accepted or approved by Turkish Grand National Assembly or by authorized bodies before the beginning of the pertaining year.
j) Budgets shall not contain issues irrelevant to the budget.
k) Budgets shall be prepared and implemented in line with a classification determined by the Ministry of Finance according to the international standards to ensure that the institutional, functional and economic results thereof are seen.
l) Clearness, accuracy and fiscal transparency are essential for budget revenue and expenditure estimations and for reporting of implementation results.
m) All revenues and expenditures of public administrations shall be indicated in their budgets.
n) Public services shall be conducted according to the methods, principles and purposes set forth by legislation, and by using the appropriations to be allocated to the budgets.
o) In budgets, appropriations shall be allocated to accomplish specific purposes.
Draft Laws to Influence Revenues and Expenditures
Article 14- (Amendment: 22.12.2005 - 5436/10-c art.) In the preparation of Draft Laws that may cause an increase in public expenditures or a decrease in public revenues and thus impose a liability on public administrations, the public administrations within the scope of central government shall calculate the financial burden by the Draft Law of a minimum period of three years and within the framework of medium term program and fiscal plan, and shall attach it to the Draft Laws. The Draft Laws on social security shall also include actuarial calculations of at least 20 years. In addition, the opinion of the Ministry of Finance, and that of the Undersecretariat of State Planning Organization or the Undersecretariat of Treasury according to its relevance, shall be attached to these Draft Laws.

SECOND SECTION
Central Government Budget Law
Scope of Central Government Budget Law
Article 15- Central Government Budget Law is the Law that indicates the revenue and expenditure estimations of the public administrations included in the central government and that grants authority and permission for their realization and implementation.
Central Government Budget Law should include revenue and expenditure estimations of the first year and following two years; budget deficit or surplus amount, how the deficit will be covered or where the surplus will be used if any; tax revenues renounced due to tax exemptions, exceptions, reductions and similar practices; borrowing and warranty limits; authorities to be granted for the implementation of budgets; relevant schedules and provisions, pertaining to revenues and expenditures, to be totally or partially implemented or not to be implemented at all during the fiscal year. The revenue-expenditure estimations of each public administration within the scope of central government may be presented in special sections or schedules of the Central Government Budget Law.
Medium Term Program, Medium Term Fiscal Plan and Budget Preparation Guide
Article 16- Ministry of Finance is responsible for the preparation of the Central Government Budget Draft Law and for ensuring the coordination between the related public administrations.

The preparation process of central government budget begins with the Council of Minister's meeting to be held until the end of May, where the Council adopts the medium term program prepared by the Undersecretariat of State Planning Organization and including basic macro policies, principles, and economic figures as targets and indicators in line with the development plans and strategic plans of the institutions and the requirements of general economic conditions. Medium term program shall be published in the Official Gazette within the same term.

As consistent with the medium term program, the medium term fiscal plan prepared by the Ministry of Finance and including deficit and borrowing positions targeted, total revenue and expenditure projections for the following three years and the ceilings of appropriation proposals of the public administrations shall be determined by The High Planning Council until the fifteenth of June, and published in the Official Gazette.

   In order to guide the preparation process of the budget proposals and investment programs of the public administrations; The Budget Call and the Budget Preparation Guide as its supplement shall be prepared by the Ministry of Finance, and the Investment Circular and Investment Program Preparation Guide as its supplement shall be prepared by the Undersecretariat of State Planning Organization, and all shall be published in the Official Gazette until the end of June.

   Budget Preparation Guide and the Investment Program Preparation Guide serving as a basis for the preparation of budget proposals shall encompass the general principles, objective and measurable standards and calculation methods to be followed by public administrations as well as other information, sample schedules and tables to be used in relation to these.

Preparation of Central Government Budget
Article 17- Basic principles that will be taken into account while developing revenue and expenditure proposals are as follows;
a) Basic figures, principles and basis determined in the Medium Term Program and Medium Term Fiscal Plan,
b) Appropriation ceilings determined in the framework of strategic plans of the administration, and priorities of development plan and annual program,
c) Multi-year budgetary framework consistent with strategic plans of public administrations,
d) Performance objectives of the administration.
The public administrations shall prepare their expenditure proposals taking into account the appropriation requests of their central and decentralized units. The general budget revenue proposal shall be prepared by the Ministry of Finance, and the revenue proposals of other budgets shall be prepared by the administrations concerned.
(Amendment: 22.12.2005 - 5436/10-a art.) The expenditure and revenue proposals shall be prepared in line with the classification system defined by the Ministry of Finance in line with international standards so as to enable economic and financial analysis and to ensure accountability and transparency.
In the framework of the principles stated in Budget Preparation Guide and strategic plans, public administrations shall prepare their budget revenue and expenditure proposals accompanied by the statement of reasons and signed by their competent authorities, and send them to the Ministry of Finance until the end of July. The investment proposals of public administrations shall be submitted for evaluation to the Undersecretariat of State Planning Organization within the same term.
Following the submission of the budget proposals to the Ministry of Finance, meetings may be held with the representatives of public administrations on their expenditure and revenue proposals.
Regulatory and supervisory agencies shall prepare their budgets according to three-year budgeting concept, strategic plans and performance objectives and to the institutional, functional and economic classification system.
Presentation of Central Government Budget Draft Law
Article 18- Following the finalization of macroeconomic indicators and budget figures by High Planning Council latest during the first week of October, the Central Government Budget Draft Law and National Budget Estimation Report, which are prepared by the Ministry of Finance, shall be presented to the Turkish Grand National Assembly by the Council of Ministers no later than seventy-five days prior to the beginning of fiscal year.
Followings shall be attached to the Central Government Budget Draft Law to be considered on the deliberations thereon;
   a) Budget memorandum including Medium Term Fiscal Plan,
   b) Annual economic report,
   c) Schedule of public revenues renounced due to tax exemptions, exceptions, reductions and similar practices,
   d) Public debt management report,
   e) Last two years' budget realizations and next two years' revenues and expenditures estimates of public administrations within the scope of general government,
   f) Budget estimates of local administrations and social security institutions,
   
   g (Abolishment of paragraph g 22.12.2005 - 5436/10-c art.)
   h) List of public administrations that are not within the scope of central government but subsidized from central government budget and of other agencies and institutions,
(Amendment: 22.12.2005 - 5436/10-b art.) Turkish Grand National Assembly, Turkish Court of Accounts and the regulatory and supervisory agencies shall submit their budgets directly to the Turkish Grand National Assembly until the end of September, and send a copy to the Ministry of Finance.


Deliberations on Central Government Budget Draft Law
Article 19- Turkish Grand National Assembly deliberates the text of Central Government Budget Draft Law on article basis and the revenue and expenditure schedules on institutional basis, and puts the Draft Law to a vote on section basis. After approval by the Assembly, Central Government Budget Law shall be published in the Official Gazette before the beginning of the fiscal year.
Public investment program shall be prepared by the Undersecretariat of State Planning Organization according to the Central Government Budget Law, and published in the Official Gazette by the Decree of Council of Ministers in fifteen days following the entry into force of aforesaid Law.
In the event that the Central Government Budget Law does not enter into force as a result of force majeuer, Provisional Budget Law shall be adopted. Provisional budget appropriations are determined on the basis of a certain ratio of previous year's initial budget appropriations. The implementation of Provisional Budget Law shall not exceed six months. The provisional budget implementation shall end when the current year budget enters into force, and the expenditures, commitments and revenues realized up to that date shall be included in the current year budget.
In the event that the appropriations in the budgets of public administrations included in the central government turns to be insufficient, or in order to carry out unforeseen services, a supplementary budget shall be prepared in a way to capture revenues to meet expenditures.

THIRD SECTION
General Principles for Implementation of Budgets
           Utilization of Appropriations
Article 20- Following principles apply to the utilization of budget appropriations:
a) (Amendment: 22.12.2005 - 5436/10-a art.) Public administrations within the scope of the general budget shall prepare their detailed expenditure programs, and submit them to the Ministry of Finance to be visaed. On the basis of the principles determined by the Ministry of Finance, budget appropriations shall be utilized according to the release rates and detailed expenditure programs visaed by considering cash planning.
b) (Amendment: 22.12.2005 - 5436/10-a art.) Special budget agencies and social security institutions shall prepare their detailed financing programs and make their expenditures according to this program.
c) (Amendment: 22.12.2005 - 5436/10-a art.) Procedures and principles regarding the preparation of detailed expenditure and financing programs, visa, application and monitoring of the application shall be determined by the Ministry of Finance.
d) Public administrations are not allowed to spend in excess of the appropriations indicated in their budgets. The appropriations provided with the budget shall be used in line with the purposes they are allocated for to cover the works done, goods and services purchased and other expenditures made in the pertaining year. However, previous years' overdue debts that are neither recorded in custody account nor subject to lapse of time, and debts based on a written judicial decree shall be paid from the current budget of the relevant public administration.
e) (Amendment: 22.12.2005 - 5436/10-a art.) Appropriations that could not be used during the current year shall be cancelled at the end of the year.
f) In the event of general or partial mobilization, declaration of war or compulsory military preparations based on the Council of Ministers Decree, the available appropriations in the budget of the Ministry of National Defense, that of the General Commandership of Gendarmerie and of the Commandership of Coast Security may be consolidated and used, provided that the consolidated amount does not exceed the total amount of the appropriations of these administrations. In case that the said amount is not sufficient, an additional amount up to fifteen percent of the total appropriations may be spent. In above-mentioned cases, for expenditures related to travel and transport, adequate amounts of advance shall be given to the paymasters assigned by the approval of authorizing officers and deducted from the appropriation to be sent within one month.
Appropriation Transfers
Article 21- Appropriations transfers among the budgets of the public administrations within the scope of central government shall be carried out on the basis of law.
However, public administrations within the scope of central government are entitled to perform appropriation transfers within their budgets up to the amount of five percent of the appropriation in the item from which the appropriation will be transferred, unless a different ratio is defined in the budget law of pertaining year. Such kind of transfers shall be notified to the Ministry of Finance in following seven days.
No transfer to other items shall be carried out from personnel expenditure items, items to which transfers have already been made, and items to which transfers have been made from contingency appropriations.
Last paragraph (Abolishment 22.12.2005 - 5436/10-c art.)
Dispatch of Appropriations to Decentralized Units
Article 22- By issuing an Appropriation Dispatch Document, authorizing officers in the central organizations of the public administrations shall dispatch appropriations to decentralized units to be utilized for their necessities.
The Minister of Finance is authorized to determine the procedures and principles for the dispatch of appropriations to the public administrations within the scope of central government.

Contingency Appropriation
Article 23- (Amendment: 22.12.2005 - 5436/10-a art.) In order to realize the services and objectives stated in the Central Government Budget Law, to remedy any appropriation shortage or to perform services not foreseen in the budgets, the contingency appropriation, not to exceed two percent of the general budget appropriations, may be allocated to the budget of Ministry of Finance to be transferred to the budgets of administrations under chart I and those  which are to be shown in the central government budget law of the administrations included under chart II of this Law. The Minister of Finance is authorized for the transfers from this appropriation.
Within fifteen days following the end of the year, The Ministry of Finance announces the distribution, in terms of type, amount and administrations, of the transfers from the contingency appropriation within the fiscal year. 
Covert Appropriation
Article 24- Covert appropriation refers to the appropriation included in the budget of the Prime Ministry to be used for the necessities of the government in confidential intelligence and defense services; in national security and high interests of the State as well as the requirements of State prestige; in achieving political, social and cultural objectives, and in providing extraordinary services. The covert appropriations may be included in the budgets of public administrations that perform intelligence services required by the duties appointed by Law. Covert appropriation shall not be used for any purpose other than the foregoing, or to meet the expenditures relating to the management, propaganda or election campaigns of political parties or the personal expenditures of the Prime Minister or his/her family. Total amount of covert appropriations allocated in the relevant year shall not exceed five per thousand of the sum of the initial appropriations in the general budget.
   The place of utilization of the covert appropriation included in the budgets of the Prime Ministry and other relevant administrations; the person who will effect the expenditure; the method of booking and closing of accounts; the documents to be delivered to the new responsible person in case of a change in the person effecting the expenditure shall be determined by the Prime Minister.
Expenditures from covert appropriations and relevant payments shall be effected on the basis of a decree signed by the Prime Minister, the Minister of Finance and the relevant minister.
Public Investment Projects
Article 25- Public investment projects shall be prepared, implemented and monitored in the framework of Decree Law No 540 dated 19/6/1994, Investment Program Preparation Guide and other relevant legislation provisions.
During the process of determination of appropriations for the projects in the investment programs of public administrations within the scope of central government, the Undersecretariat of State Planning Organization shall work in cooperation with the Ministry of Finance in order to ensure the unity of budget.
   The investment projects of administrations in chart III of this Law shall be included in the investment program of its pertaining year for information. In addition, the principles and procedures on the implementation and monitor of the investments of social security institutions and local administrations shall be determined by the Undersecretariat of State Planning Organization.
The realization and implementation results of public investment projects shall be submitted by the relevant public administrations to the Court of Accounts, the Ministry of Finance, and the Undersecretariat of State Planning Organization as a report by the end of March of subsequent year.
Among the new public investment project proposals, except the ones on disasters, the cost of which is above the limit to be set by the "Decree of Council of Ministers on The Implementation, Coordination and Monitoring of Current Year Program"; those which do not have a feasibility study including environmental analysis and cost-benefit or cost-efficiency analysis; and those which are not examined and approved for feasibility by the Undersecretariat of State Planning Organization shall not be included in the investment program.

Making Commitments
Article 26- Commitment means undertaking a future payment obligation against a work order, purchase of goods or services, depending on the provisions of an agreement duly concluded or on the provisions of the Law. No commitment shall be made for works for which adequate appropriation is not allocated in the budget. The term of commitment is limited to the fiscal year. Authorizing officers are entitled to undertake commitments within the limits of allocated appropriations. The appropriations for the committed amounts shall be reserved, and shall not be used for other works or for the purchase of other goods or services.
Commitments Carried Over to Next Year
Article 27- Subject to the approval of the head of public administration, commitments carried over to the next year may be undertaken for following tasks and services that can not be limited by the fiscal year and are continuous because of their nature; provided that, for each task, it does not exceed fifty percent of the appropriation provided in the budget and does not continue longer than June of the subsequent year and its term does not exceed twelve months:
a) Construction, repair, study and project works, as well as research-development projects, garments and food purchases, machinery-equipment, arms-munitions-equipment purchases of Turkish Armed Forces, and maintenance, repair and manufacture works thereof.
b) Food, fuel for heating, fuel oil and mineral oil requirements.
c) Medicaments, vaccines, serums and medical consumables that are difficult to obtain and preserve.
d) (Amendment: 22.12.2005 - 5436/10-b art.) Purchase of periodicals, transportation, protection and security, cleaning and meal services.
e) (Amendment: 22.12.2005 - 5436/10-a art.) Compulsory pecuniary liability insurance for the vehicles and transportation insurance issued in order to insure the delivery of arms, arms equipment and munitions from abroad against any and all risks.
f) (Amendment: 22.12.2005 - 5436/10-a art.) Maintenance and repair works of the machinery and equipment, roads and highways, computer and communication systems; any type of repair works and electronic information access services.
(Amendment: 22.12.2005 - 5436/10-b art.) However, the provision stipulating that fifty percent of the appropriations provided in the budget is not to be exceeded for the tasks and services listed in subclause (d), shall not be sought for the Ministry of National Education. 
Commitments Carried Over to Subsequent Years
Article 28- (Amendment: 22.12.2005 - 5436/10-c art.) Public administrations within the scope of central government may undertake commitments carried over to the subsequent years for the investment projects that cannot be completed in one fiscal year.
Within the framework of Law No 3833 dated 2/7/1992, the Ministry of National Defense or the Ministry of Interior, according to its relevance, is authorized to undertake commitments carried over to subsequent years for the projects included in the Strategic Goal Plan of Turkish Armed Forces.
Upon the positive opinion of the Ministry of Finance, the Ministry of Foreign Affairs may undertake commitments carried over to the subsequent years for the purchase of a building or a land or the construction or lease of a building for foreign representation.
(Amendment: 22.12.2005 - 5436/10-b art.) Provided that there is appropriation in the annual budget and the positive opinion of the Ministry of Finance is obtained, commitments may be undertaken with the approval of the head of public administration for a period not to exceed three years and spread over the coming years for any type of machinery and equipment, devices and vehicles whose purchase is not economically profitable, the rental of air and marine vehicles for fire extinction, purchase of vaccines and anti serum, and forestation and arrangement works.
Grants from Budgets
Article 29- No real or legal person is allowed to use, to be granted or to benefit from any public resources without a legal ground. However, grants to associations, foundations, unions, institutions, organizations, funds and similar entities may be given by aiming public interest, on condition that they are foreseen in the budgets of public administrations within the scope of general government.
The procedures and principles on providing, utilizing, monitoring, auditing and publicizing grants shall be determined by a regulation to be prepared by the Ministry of Finance and to be issued by the Council of Ministers.

Budget Policy, Monitoring Revenues and Expenditures
Article 30- Regarding the implementation of the Central Government Budget, with the purpose of ensuring economy in expenditures and conducting a consistent, balanced and effective budget policy; the Minister of Finance is entitled to take necessary measures to organize the practices in matters stipulated under the laws, by-laws, regulations and decrees concerning the revenues and expenditures, to set standards, to impose restrictions, to steer the determination and implementation of public employment policy, to monitor budget expenditures and realizations, to determine certain principles governing the distribution and utilization of appropriations and to impose binding arrangements for public administrations on these matters.
In order to determine and monitor all revenues and expenditures, debts and financial resources of the general government; public administrations within the scope of general government, institutions, organizations, foundations and associations and similar entities subsidized from the central government budget shall submit their revenue and expenditure estimations, financial statements, the details of the amounts receivable from and payable to each other, and all kinds of information and documents concerning their personnel expenditures to the Ministry of Finance when requested. The Minister of Finance is authorized to take necessary measures concerning the public administrations and other organizations which have not presented such documents or account statements or which have not effected expenditures in due manner.
(Amendment: 22.12.2005 - 5436/10-a art.) Administrations within the scope of the general government shall announce the implementation results of their budgets for the first six months and their expectations, objectives and activities regarding the second six months and the Ministry of Finance shall announce the implementation results of first six months of the central government budget law, the financing condition, expectations and objectives regarding the second six months and the financial condition comprising the activities to the public in the month of July.
FOURTH SECTION
Spending Authority and Authorizing Officers
Article 31- (Amendment: 22.12.2005 - 5436/1 art.) Head of each spending unit to which appropriation is allocated with the budget is the authorizing officer.
However, in administrations where there are difficulties in determining the authorizing officers because of reasons such as the organizational structure and personnel conditions and in administrations in whose budgets spending units are not classified, the spending authority may be carried out by the head of public administrations or persons to be determined by the head of public administrations; upon the positive opinion of the Ministry of Interior Affairs in local governments and the Ministry of Finance in the other administrations.
In expenditures performed based on the authority vested by the laws and with the resolution of the board of directors, executive committee, commission and similar boards or committees, the responsibility arising out of the spending authority belongs to the board, committee or commission.
In public administrations within the scope of general government, the principles and procedures on the determination of the authorizing officers according to administrations, central and decentral units and their duty titles, on combining the spending authority at an upper management level and on the transfer of spending authority shall be defined by the Ministry of Finance. Transfer of the spending authority does not relieve the administrative responsibility of the person transferring the spending authority. 
Authorizing officers may effect expenditures up to the amount of the appropriation foreseen in the budget and authorizing officers who are supplied with the appropriations via Appropriation Dispatch Document may effect expenditures up to the amount of appropriation allocated.
Spending Instruction and Responsibility
Article 32- Effecting expenditures from budgets is pending to the delivery of a spending instruction issued by the authorizing officer. The spending instruction shall include information on the statement of the purpose of service as well as subject, amount, duration, available appropriation and realization procedure of the work to be performed and on realization officers.
Authorizing officers are responsible for the compliance of spending instructions with the budget principles and basics, laws, by-laws and regulations and other legislations, for the effective, economic and efficient utilization of the appropriations and for other transactions they shall perform in the framework of this Law.
Realization of Expenditure
Article 33- (Amendment: 22.12.2005 - 5436/10-a art.) In order to effect expenditure from the budgets, that the works, goods or services are performed or received in accordance with the defined principles and rules shall be approved by the designated person or commission, and the realization documents shall be issued. The realization of the expenditures shall be completed when the payment order, which is prepared by the person determined by the authorizing officers, is signed by the authorizing officer and upon the payment of the due amount to the rightful person.
Upon the spending instruction, realization officers shall perform the duties of having the work to be done, receiving goods or services, completing the receiving formalities, documenting and issuing the documents required for payment.
(Amendment: 22.12.2005 - 5436/10-b art.) In expenditure to be performed by utilizing a common database to be established on an electronic environment, data input procedures shall be deemed realization duties. Principles and procedures on the performance of this paragraph shall be determined by the Ministry of Finance.
Realization officers shall be responsible for the duties and transactions they should perform in the framework of this Law.
(Amendment: 22.12.2005 - 5436/10-b art.) The forms and types of the realization documents to be required according to the type of the expenditure shall be determined by regulations to be issued upon obtaining the positive opinion of the Ministry of Finance by the Ministry of Finance for public administrations within the scope of central government, by the Ministry of Interior for local administrations, and by the affiliated or related ministries for social security institutions, provided that the positive opinion of the Undersecretariat of Treasury is obtained for those related to public debt management.
Unpaid Amounts and Budgeted Debts
Article 34- (Amendment: 22.12.2005 - 5436/2 art.) Amounts which are not paid although they have been bound to the payment order document shall be deposited in and paid from custody accounts by recording them as expenditure in the budget. However the amounts at the custody accounts which are not claimed until the end of the fifth year following the fiscal year of the purchase of the goods or the performance of the service shall be recorded as revenue to the budget. Amounts recorded as revenue shall be paid upon court decision.
In the event that the cash amounts available to the public administrations do not suffice to cover all of the payments, expenditures shall be paid according to the accounting record order. However, priority shall be given in the following order to; taxes, duties, levies, premiums, fund deductions, shares and similar amounts to be paid to the other public administrations, scheduled payments, debts subject to court decision, debts to impose additional load in case of non-payment such as delay penalty or interest and solicited amounts in custody accounts. 
Debts that are not claimed in written by their payees without any valid reason until the end of the fifth year following the pertaining fiscal year or those that could not be paid because of the related documents were not submitted shall be subject to lapse of time and discontinue in favor of the public administrations.
Expenditures at the public administrations within the scope of the general budget, which have no appropriation at the place and time and which are related to expenditures not subject to an undertaking and an expenditure order and are performed from economic codes to be determined by the Ministry of Finance and whose appropriation is foreseen in the budget, are duly realized by adding the expenditure documents which constitute the basis and included in the related accounts and are paid after the appropriation has been received. Appropriation dispatch documents regarding these amounts shall be sent to the accounting unit latest until the end of the fiscal year and their accounting procedures shall be completed. The principles and procedures for the implementation of this paragraph shall be determined by the Ministry of Finance.
Prepayment
Article 35- (Amendment: 22.12.2005 - 5436/10-a art.) Subject to the positive opinion of the authorizing officer and provided that the corresponding appropriation is reserved; prepayment in the form of advance payment or credit extension may be executed in the case of urgent or mandatory expenditures for which the realization of formalities and cases foreseen in the relevant laws can not be awaited. The upper limits of the advance payment shall be included in the central government budget law.
Provided that it is stated in the relevant contract and not exceeding thirty percent of the contracted total amount, extra-budgetary advance payment against warranty may be made to the contractors. The provisions of relevant laws on extra-budgetary advance payment shall be reserved.
(Amendment: 22.12.2005 - 5436/10-a art.) Excess credit amounts of opened letter of credits shall be carried over to the next year and their appropriations shall be cancelled. The amount carried over shall be recorded as appropriation in the related item in the budget of public administrations within the scope of the general budget by the Minister of Finance and of other public administrations by the head of administration.
In the event that, by the end of the term of the contract, a certain part of the service could not be completed yet, or the performance of the contract could not start because of force majeuer but a time extension has been granted by the relevant administration and such extension prolongs to the next fiscal year; the excess contract amount at the end of the year shall be carried over and the provisions on letters of credit shall apply to the appropriations concerning these amounts. If the service corresponding to the excess contract amount carried over is accomplished within the course of time extension and the related evidencing documents are submitted, such amount shall be paid by recording as expenditure in the budget of the year when the service be performed.
Every paymaster is under the obligation of submitting to the accounting officer the evidencing documents related to the amounts he/she spent from the prepayments, if not provided in the relevant laws in one month time for advances and in three months for credits. She/he is also under the obligation of returning the excess amount. For advances not set off  in due time, the provisions of the Law No 6183 dated 21/7/1953 shall apply.
   (Amendment: 22.12.2005 - 5436/10-b art.) In public administrations within the scope of central government, the forms of prepayments, transfer and offsetting transactions, determination of the amounts and rates of the prepayments in terms of administration and expenditure, amount and offsetting period of the prepayment for the expenditures to be performed in obligatory cases, assignment of paymasters, and the procedures and principles related to other transactions shall be arranged by a regulation to be prepared by the Ministry of Finance and issued by the Council of Ministers. For other public administrations, the procedures and principles on prepayments shall be provided in relevant legislations by considering the provisions of this article.

Provisions of the Law No 3833 and dated 2/7/1992 concerning advances and credit transactions are reserved.
FIFTH SECTION
Revenue Policy and Principles
   Article 36- Following principles shall apply to the collection of revenues:

   a) At the beginning of each fiscal year, the Ministry of Finance publicizes its principles, objectives, strategies, and commitments regarding revenue policies and their implementation.

b) Necessary services shall be provided and measures shall be taken to facilitate the performance of taxes, levies, charges and similar obligations of taxpayers and responsibles.

c) The tax compliance of taxpayers and responsibles shall be encouraged.

d) Necessary measures shall be taken by concerned administrations for informing the taxpayers on the protection of the rights and the obligations.
Basis of Revenues
Article 37- Taxes, levies, charges and similar financial liabilities shall be imposed, amended or removed by laws.
(Amendment: 22.12.2005 - 5436/10-b art.) The legal grounds of the revenues of the public administrations within the scope of general government shall be indicated in their budgets. The revenues indicated in the budgets shall be imposed, accrued and collected in accordance with the procedures set out in their respective laws. The imposition, accrual and collection of general budget revenues shall be performed by the Ministry of Finance or by the administrations authorized according to the legislation related to imposition and accrual.
The shares to be given to other administrations, institutions and organizations from the taxes, levies, charges and other revenues collected by public administrations within the scope of general government shall be covered by the appropriations to be included in the budget of the revenue collecting public administration for this purpose. The available amount that may be utilized during the fiscal year cannot exceed the share amount to be calculated by considering the collected amount according to the provisions of the related law. In the event that the amount of the share calculated in this manner exceeds the appropriation amount allocated for this purpose, in administrations within the scope of general budget, the Minister of Finance and in the others the head of the public administration is authorized to allocate supplementary appropriation provided that it does not exceed the said difference.
Without prejudice to the provisions of relevant laws, the principles and procedures applicable to writing off the revenues subject to lapse of time shall be determined by the Ministry of Finance.
Revenue Collection Responsibility
Article 38- Those who are authorized for and in charge of the imposition, accrual, collection of the public revenues are responsible for the timely and proper performance of the imposition, accrual and collection transactions stipulated in the applicable laws.
Special Revenues
Article 39- The amount of special appropriations allocated to the administrations against special revenues shall be indicated in the budgets of relevant administrations. The amount of special appropriation available during the fiscal year may not exceed the amount of special revenues collected. In the event that the collected special revenues exceed the amount of the appropriation, no supplementary appropriation is allowed.
Price lists of priceable goods and services, which are stated in relevant laws, and the procedures and principles related to their practice shall be determined by the relevant public administrations by obtaining the opinion of the Ministry of Finance.
Authorities and transactions related to the recording, carrying over to the subsequent year and cancellation of appropriations concerning special revenues shall be indicated in the Central Government Budget Law.
Donations and Grants
Article 40 - No donation or grant may be collected by any real or legal person in return for or in relation to a public service or under similar denominations.
All kind of donations and grants made to the public administrations shall be recorded as revenue in their budgets. Donations and grants that are not in cash form shall be valuated and recorded according to the relevant legislation.
Without prejudice to the provisions of Law No 4749 dated 28/3/2002 for conditional donations and grants provided through foreign financing, upon the approval of the head of public administration which will render the service, the conditional donations and grants to be used by the public administrations pursuing public interest shall be recorded as revenue in an item to be established in the budget and as appropriation in an item to be established for the use for its imposed purpose. Apart from the imposed purpose, no transfer from this appropriation to another item is allowed.
Amounts of such appropriations unused until the end of fiscal year shall be carried over to the subsequent year's budget and recorded as appropriation until the purpose of the donation or grant is accomplished. However, the Minister of Finance for the public administrations within the scope of the general budget and the head of public administration for others is authorized to cancel the appropriation amounts which remain after the purpose of allocation is accomplished; which are not sufficient for the realization of the purpose or which not exceed the amount indicated in the pertaining year budget and not spent after being carried over for two consecutive years.
In the event that the donations and grants are requested to be returned because of non-utilization or out-of-purpose utilization, they shall be paid back to the relevant person by recording to the budget as expenditure. Those who are accounted responsible are obliged to recover the expenses occurring due to out-of-purpose utilization of conditional donations and grants or losses arising from not using them in time.
SIXTH SECTION
Accountability Reports and Final Account
Accountability Reports
Article 41- (Amendment: 22.12.2005 - 5436/3 art.) Within the framework of accountability, the heads of public administrations and authorizing officers to whom appropriations are allocated in the budget shall issue accountability reports each year. On the basis of unit accountability reports prepared by authorizing officers, the heads of public administrations shall prepare and publicize the "administration accountability reports", which present the activity results of their administrations. Public administrations within the scope of central government and social security institutions shall submit a copy of their administration accountability reports to the Court of Accounts and to the Ministry of Finance.
Each one copy of the accountability reports prepared by local governments shall be sent to the Court of Accounts and to the Ministry of Interior. The Ministry of Interior shall take these reports and shall prepare and publicize the "local governments general accountability report" which include also its own evaluations. A copy of the report shall be sent each to the Court of Accounts and the Ministry of Finance.
Results of the activities of public administrations within the scope of central government and social security institutions in one fiscal year shall be presented in the "general accountability report" to be prepared by the Ministry of Finance. This report shall also include general evaluations regarding the financial structures of local governments. The Ministry of Finance shall publicize the general accountability report and send one copy to the Court of Accounts.
Except for the reports of local administrations, the administration accountability reports, the general accountability report on local administrations and the general accountability report shall be submitted to the Turkish Grand National Assembly by the Court of Accounts by presenting its own opinions considering external audit results. Within the framework of these reports and evaluations, the Turkish Grand National Assembly deliberates the public administrations' management and accountability with regard to the acquisition and utilization of public resources. It is compulsory for the heads of public administrations or deputies to be appointed by the heads to join these deliberations together with the related ministers
The accountability report of the administration shall be prepared so as to include, along with the general information on the related administration, the resources used, and the reasons of the deviation arising regarding the budget targets and realizations, financial information comprising the information regarding the activities of associations, institutions and organizations aided through assets and liabilities; and information on activities and performance information performed as per strategic plans and performance program.
The subjects to be included in these reports, the preparation of the reports, their delivery to pertaining administrations, the publication and the terms and other procedures and principles concerning these transactions shall be determined by a regulation to be prepared by the Ministry of Finance by obtaining the opinions of the Ministry of Interior and the Court of Accounts.
Final Account Law

Article 42- The Turkish Grand National Assembly exercises its power of approving the implementation results of the Central Government Budget Law through the Final Account Law.
Basing on the accounting records, the Ministry of Finance shall draft the Final Account Law in consistency with the form of Central Government Budget Law. The Draft Law together with the statement of reasons including the comparative assessments on yearly implementation results shall be submitted to the Turkish Grand National Assembly by the Council of Ministers latest until the end of June of the subsequent fiscal year, and a copy shall be sent to the Court of Accounts.
Followings shall be attached to the Draft Final Account Law;
a)   General Trial Balance,
b)   Budget revenues final account schedule and explanations thereon,
c)   Budget expenditures final account schedules and explanations thereon,
d)   Budget revenue and expenditure distribution in terms of provinces and administrations,
e)   Schedules of state debts and treasury warranties,
f)   Schedule of public receivables written-off during the same year,
g)   (Amendment: 22.12.2005 - 5436/10-b art.) Asset management account summary charts
h)   Other documentation required by the Ministry of Finance
(Amendment: 22.12.2005 - 5436/10-a art.) The principles and procedures concerning the preparation of final accounts of public administrations within the scope of central government shall be determined by the Ministry of Finance.
Administration accountability reports, general accountability report, external audit general evaluation report and Draft Final Account Law shall be deliberated by the commissions of Turkish Grand National Assembly together with the Central Government Budget Law. However, priority is given to the discussion of these reports and general conformity statement.
   The implementation results of budgets of local administrations and social security institutions shall be entered into the final account in accordance with the provisions in the relevant laws.
            General Conformity Statement
Article 43- The Court of Accounts submits the General Conformity Statement, which it shall prepare for the public administrations within the scope of central government, to the Turkish Grand National Assembly latest in seventy-five days after the submission of the Draft Final Account Law. 
General Conformity Statement shall be prepared by taking into account the external audit reports, the administration accountability reports and the general accountability report.
The submission of the Draft Final Account Law and the General Conformity Statement to the Turkish Grand National Assembly does not suspend ongoing audits of the Court of Accounts, and does not purport that the accounts of the related year are finalized.




THIRD PART
Movable and Immovables
Movable and Immovables Transactions
Article 44- (Amendment: 22.12.2005 - 5436/10-a art.) The acquisition, management, bartering and disposal of movable and immovables by the public administrations within the scope of general government, the method to apply in the collection and follow-up of property related fees, the management and protection of places owned and enjoyed by the State, the evacuation of unduly used assets shall be regulated through relevant laws. The procedures and principles on recording the assets, the protection and utilization of the movable assets and submitting the accountability on asset management, the determination of authorized persons for asset management and the persons to be on duty together on behalf of them shall be set out in regulations to be prepared by the Ministry of Finance and issued by the Decree of Council of Ministers.
(Amendment: 22.12.2005 - 5436/10-a art.) The procedures and principles on recording, management and internal audit of the movable assets for the aim of defense and security owned by Turkish Armed Forces (including General Commandership of Gendarmerie and Commandership of Coast Security), National Intelligence Organization and the General Directorate of Security shall be prepared together with the Ministries of National Defense, Interior and Finance and set out in the regulation to be enforced by the Council of Ministers.
Movable and Immovable Acquisition
Article 45- When required by the public services, public administrations within the scope of general government may purchase movable and immovables of the required quality and quantity inland and abroad by paying in front or in installments or by means of financial leasing. Public administrations may perform transactions of procurement and expropriation of immovables through another public administration by means of delegation of authority. The immovables acquired by public administrations within the scope of general government shall be registered under the name of the State Treasury and those owned by other public administrations shall be registered under the legal entities of such administrations, in the land registry. The immovables registered under the name of the State Treasury shall be managed by the Ministry of Finance. This registration completed for the relevant administration shall be notified to the administration's unit where such immovable is located.
In the event that goods produced by public administrations are used for their own consumption, the prices of such products shall be entered by their market values to the relevant appropriation item and the corresponding amount shall be recorded as revenue.
The public administrations may transfer their movable assets in excess of their needs to other public administrations free of charge. They may also transfer their immovables to other public administrations free of charge with the condition of annotating in the land registry that the assets shall be used in public services required under their duties and that the assets are to be returned when not used in purpose. The Ministry of Finance shall determine the movable and immovables that shall not be transferred, as well as the procedures and principles on transferring and recording.
The disputes between public administrations concerning the ownership of immovables shall be settled by the competent courts.
Sale of Movable and Immovables
Article 46 – Ministry of Finance is authorized for the sale of any kind of movable and immovables owned by public administrations within the scope of general budget. The proceeds shall be recorded as revenue in the general budget. The movable and immovables owned by other administrations shall be disposed upon the decision of the competent bodies defined in their particular laws.
Among the immovables owned by the public administrations within the scope of central government, those having values exceeding the limit set forth in the Central Government Budget Law shall be sold upon the Decree of Council of Ministers.
Allocation of Immovables   
Article 47- (Amendment: 22.12.2005 - 5436/4 art.) The public administrations may allocate immovables and the places under the jurisdiction and possession of the State among each other and to village legal entities free of charge to perform the public services set out in their relevant laws. The allocated assets cannot be used other than the aim.
The authority for allocating the immovables under the special possession of the State Treasury and under the jurisdiction and possession of the State as well as the authority for lifting the allocations of the immovables which are not necessary for public use belongs to the Ministry of Finance and the authority for allocating and lifting the allocation of the other immovables belongs to the owning public administration.
Special provisions in the laws are reserved.
Effectiveness and Responsibility in Asset Management
Article 48- The public administrations shall be responsible for the management, recording, maintenance and utilization of movable assets. No responsibility shall be assumed for the depreciation arising from the special features or ordinary use of the movable assets, and for losses determined according to relevant procedures.
Attendants to whom any movable asset is delivered for use are responsible for the protection of the asset and for damages caused to the asset. The public administrations shall be responsible to ensure that any damage caused is compensated by those who are responsible for such damages.
On the basis of efficiency and economy principles, the acquisition, lease, allocation, management, use and disposal of the movable and immovables owned by the public administrations shall be performed in line with the rules stipulated in the relevant legislation and in accordance with the purpose of the service. Those who are authorized for the management or utilization of the assets shall be liable for the losses that may arise from the actions and operations not complying with these principles.

FOURTH PART
Public Accounts and Financial Statistics
FIRST SECTION
Public Accounts
Accounting System
Article 49- (Amendment: 22.12.2005 - 5436/5 art.)The accounting system shall be established and managed in a manner to constitute the basis for the preparation of financial reports and establishment of the final account and to ensure the efficient performance of the decision, control and accountability processes.
Public accounts shall be kept with a view to provide necessary information for the public and for the officials in charge of management and audit, by ensuring that all kinds of transactions on revenues, expenditures and assets of the public administrations and transactions having financial consequences, or causing a decrease or increase in the equity, and guarantees and liabilities are recorded in the accounts under a defined system.
The accounting and reporting standards to be implemented by the administrations within the scope of the general government, shall be set forth by the State Accounting Standards Board to be established with the participation of the representatives of the Court of Accounts, Ministry of Finance, the Undersecretariat of the State Planning Organization, the Undersecretariat of Treasury and the other related organizations in accordance with the international standards within the organization of the Ministry of Finance. These standards shall be published in the Official Gazette. The structure, working procedures and principles as well as other issues shall be stipulated by a regulation to be issued by the Ministry of Finance.
Those who are assigned in this Board continue to carry out their primary duties. The Chairman and the members shall be paid, not to be more than twice a month, an attendance pay not exceeding the amount calculated by multiplying the index figure (3000) by civil servant monthly coefficient, for every day of meetings.
The form, period and types of the reports to be prepared with the framework chart of accounts to be applied by the public administrations within the scope of general government shall be determined by the Ministry of Finance by taking the opinions of concerned administrations within the frame of the accounting and reporting standards determined by the Board and shall be arranged with the regulation to be enforced by the Decree of the Council of Ministers.
The arrangement regarding the form and types of the documents to be used in the accounting transactions, chart of accounts and accounting of the transactions shall be determined, in line with the Regulation mentioned in the fifth paragraph, by taking the opinion of concerned administrations, by the Ministry of Finance for the public administrations within the scope of the central government; by the concerned administrations for the social security institutions, and by the Ministry of Interior for the local governments by taking the appropriate opinion of the Ministry of Finance. The subjects regarding the detailed chart of accounts of the public administrations within the scope of the general government are determined by the Ministry of Finance.
Recording Time (Amendment: 22.12.2005 - 5436/10-c art.)
Article 50- An economic value shall be booked when it is produced, transformed, exchanged, transferred or terminated. It is mandatory that all financial transactions are booked, and all accounting records are based on documents.
Second paragraph (Abolishment 22.12.2005 - 5436/10-c art.)   

Third paragraph (Abolishment 22.12.2005 - 5436/10-c art.)
Year of Public Revenues and Expenditures and Offsetting Period
Article 51- Public revenues and expenditures shall be indicated in the accounts of the fiscal year of their accrual.
Budget revenues shall be booked in the year of collection and budget expenditures in the year of payment.
Public accounts shall be kept on fiscal year basis. Offsetting operations of the payments actually performed but not offset until the end of fiscal year may be realized in one-month time following the end of the fiscal year, provided that their appropriations are reserved. In force majeuer cases, this period may be prolonged by the Ministry of Finance for a maximum of one month for budget expenditures and for a maximum of five months for other transactions.
SECOND SECTION
Financial Statistics
Scope, Basic Principles and Institutional Environment
Article 52- Financial statistics shall cover the financial transactions of the public administrations within the scope of general government.
Within the framework of the principles of integrity, reliability, usefulness, methodological validity and accessibility and in consistency with the international standards, the financial statistics shall be prepared by the staff, who have received proper professional training, on the basis of the data in the accounting records and by using statistical methods.
   During the preparation of the financial statistics, the administrators of public administrations shall take necessary measures for the creation of a suitable institutional environment.
Preparing and Publicizing Financial Statistics
Article 53- The financial statistics relating to public administrations within the scope of general government shall be compiled by the Ministry of Finance. The public administrations outside the scope of central government shall prepare their financial statistics in accordance with the predetermined principles and submit them to the Ministry of Finance within the prescribed periods.
The financial statistics of the public administrations within the scope of central government shall be published monthly by the Ministry of Finance. The financial statistics of the public administrations within the scope of general government shall be obtained through combining the financial statistics of the social security institutions, local administrations and the public administrations within the scope of central government, and shall be published quarterly by the Ministry of Finance.
It is essential that the financial statistics are understandable and easily accessible to the users.


Evaluations of Financial Statistics
Article 54- The yearly financial statistics shall be evaluated by the Court of Accounts in March of the following year in terms of preparation, publication, accuracy, reliability and conformity to the predetermined standards. The evaluation report prepared for this purpose by the Court of Accounts shall be submitted to the Turkish Grand National Assembly and the Ministry of Finance, and the Minister of Finance shall take the necessary measures concerning these evaluations.

FIFTH PART
Internal Control System
Definition of Internal Control
Article 55- (Amendment: 22.12.2005 - 5436/10-a art.) Internal control is the whole of the financial and other controls comprising organization, methodology, procedure and internal audit established by the administration in order to provide that the activities are performed in an effective, economic and efficient way in accordance with the aims, defined policies of the administration and with legislation, the assets and resources are protected, the accounting records are held correctly and completely, the financial information and management information are produced in time and securely.

(Amendment: 22.12.2005 - 5436/10-a art.) The standards and procedures related to the financial management and internal control processes shall be defined, developed and harmonized by the Ministry of Finance and those related to the internal audit by the Internal Audit Coordination Board, within the framework of their duties and authorizations. These bodies shall at the same time ensure the coordination of the systems, and provide guidance to public administrations.

Objectives of Internal Control

Article 56- The objectives of internal control are:

a) To manage the public revenues, expenditures, assets and liabilities in an effective, economic and efficient way,

b) To ensure that public administrations operate in accordance with the laws and other legislations,

c) To prevent irregularities and frauds in all kinds of financial decisions and transactions,

d) To ensure regular, timely and reliable reporting and acquisition of information for taking decisions and monitoring,

e) (Amendment: 22.12.2005 - 5436/10-a art.) To prevent the misuse and waste of assets and protect against losses.

          Structure and Functioning of Control

Article 57- (Amendment: 22.12.2005 - 5436/10-a art.) Public administrations' financial management and control systems consist of spending units, accounting and financial services, ex ante financial control and internal audit.

In order to establish an adequate and effective control system; necessary measures shall be taken by the heads and other administrators of the relevant administrations by considering duties, authorizations and responsibilities, for building high professional values and an honest administration concept; for granting financial authorities and responsibilities to well-informed and qualified administrators and staff; for ensuring that established standards are followed; for avoiding activities against legislation; and for ensuring a comprehensive management approach and a suitable work environment as well as transparency.

Last paragraph (Abolishment: 22.12.2005 - 5436/10-c art.)
Ex ante Financial Control
           Article 58- (Amendment: 22.12.2005 - 5436/6 art.) Ex ante financial control covers the controls performed during the realization of the procedures in the spending units and the controls performed by the financial services unit.
           The ex ante financial control process consists of the preparation of financial decisions and transactions, undertaking commitment, realization of works and transactions and their documentation.

   At public administrations ex ante financial control duty is performed within the framework of the managerial responsibility.

The principles and procedures for minimum controls to be performed during the realization of the procedures at the spending units, financial decisions and transactions to be subject to ex ante financial control by the financial services unit and the standards and methods regarding ex ante financial control shall be determined by the Ministry of Finance. Provided not contradicting with these standards and methods the public administration may make arrangements in this subject.


Qualifications and Appointment of Financial Control Officer

Article 59- (Abolishment: 22.12.2005 - 5436/10-c art.)
Financial Services Unit
Article 60- (Amendment: 22.12.2005 - 5436/7 art.) In public administrations, below listed duties shall be rendered by the financial services unit:
            a) Coordinating the preparation of the strategic plan and performance program of the administration and carrying out the works for consolidating the results,
              b) Preparing the administration budget, which includes the budget estimations for the following two years, in accordance with the strategic plan and annual performance program and following and evaluating the compliance of the activities of the administration to these,
             c) Preparing a detailed expenditure program within the budget principles and basics to be determined as per legislation and to provide that the appropriation is sent to related units by taking into account the service requirements,
            d) Recording the budget, collecting and evaluating the data regarding the budget implementation results and preparing the budget final account and financial statistics,

e) Having the administration's revenues accrued within the related legislation, carrying out follow up and collection procedures of revenues and receivables,
            f) Carrying out accounting services at administrations outside the scope of the general budget,

g) Preparing the accountability report of the administration by taking the unit accountability reports as basis, which have been prepared by the spending units,

h) Preparing summary charts regarding the movable and immovables possessed or used by the administration,

i) Coordinating the preparation of the investment program of the administration, following up the implementation results and preparing the annual investment evaluation report,

j) Carrying out and finalizing the financial works and transactions of the administration which are to be followed up at other administrations,

k) Providing necessary information and consultancy to the head of the administration and authorizing officers regarding the implementation of financial laws and other related legislation,

l) Performing ex ante financial control activity,

m) Performing activities on the subjects of establishing the internal control system, implementation and development of standards,
n) Carrying out other duties on the financial issues assigned by the head of public administration.

Out of the purchasing, selling, construction, rental, lease, maintenance-repair and similar financial procedures those which are related to the whole of the administration are realized by the unit performing support services and those which are related only to the spending unit shall be performed by the spending units. However, provided that the duty of authorizing officer remains with them these procedures can be performed by the unit performing support services upon the request of the spending unit and the approval of the head of the public administration.

The structure of the financial services unit shall be shown in the organization laws. The working principles and procedures of the financial services units shall be prepared by the Ministry of Finance by taking into account the organization structure of the administrations and so that the strategic planning, budget and performance program, accounting-final account and reporting, and internal control functions are performed by separate subunits and shall be determined by a regulation to be issued by the Council of Ministers.

The duty of the authorizing officer and accounting officer cannot be combined on one person. Those performing ex ante control duty in the financial services unit cannot be on duty in the financial transaction process.

In the financial services units of the administrations financial services experts may be employed. They shall enter into the profession as financial services assistant experts after a special competitive examination to be held for the graduates of the faculties of law, political sciences, economics, business administration, economics and administrative sciences that provide at least four year bachelor education or graduates of the education institutions within the country or abroad whose equivalence is accepted by the competent authorities, provided that these persons have not completed their 30th age as of the beginning of the year of the test and they become eligible to enter into the competency examination to be held after they work at least three years on condition that their employment record is positive. Those being successful at the competency examination shall be appointed as financial services expert. The entrance to the profession and competency examination and the working procedures and principles of the financial services experts shall be arranged by the regulation to be issued by the Ministry of Finance.

(Amendment: 22.12.2005 - 5436/10-a art.) Accounting Services and the authorities and responsibilities of the accounting officer
Article 61- (Amendment: 22.12.2005 - 5436/10-a art.) Accounting services include; collecting revenues and receivables; making payments to the payees; receiving, keeping and sending to the concerned authorities the deposits and the values that can be expressed as money; and keeping records of all other financial transactions as well as issuing reports thereon. Persons performing these transactions shall be accounting officers. The civil service positions and titles shall have no effect on being qualified as the accounting officer.
            The accounting officer is responsible for performing these services and keeping accounting records in a regular, transparent and accessible way. Without prejudice to the provisions of Law No 4059 dated 9/12/1994, accounting services of the public administrations within the scope of general budget shall be rendered by the Ministry of Finance. Accounting officers shall regularly send necessary information and reports to these public administrations.

At the payment stage, accounting officers are obliged to control the payment order document and its appendices for;

a) The signatures of the authorized persons,

b) The completeness of the documents listed in the regulations pertaining to payment,

c) The existence of any material error, and

d) The information on the identity of the rightful person.
 
(Amendment: 22.12.2005 - 5436/10-a art.)An accounting officer shall not request any evidencing document other than those set out in the applicable legislation. He/she shall not make any payment in the event of any error or omission with regard to the foregoing. Payment order documents with any missing or erroneous document shall be sent for correction or completion to the authorizing officer in written form with the statement of reasons latest in one working day. When the errors are corrected or the incompleteness is remedied, the payment shall be effected.
Accounting officers shall keep and hold ready for audit the books, records and documentation related to the transactions they perform.
(Amendment: 22.12.2005 - 5436/10-b art.) Accounting officers are held responsible under the provisions on payment in the first paragraph of Article 34 and under their control obligations concerning payment, stated in the third paragraph of this article. The responsibilities of accounting officers in relation to the controls they carry out as herein provided are limited to the documents they examine as required by their duties. The Ministry of Finance shall be authorized to make an arrangement regarding the transfer of the duties and authorities of the accounting officers to their assistants.
   (Amendment: 22.12.2005 - 5436/10-a art.)Accounting officer's paymasters are those who are entitled to temporarily collect, pay and send money and values that can be expressed as money, on the name and behalf of accounting officers. Accounting officer's paymasters are directly responsible vis-à-vis the accounting officers. Procedures and principles on the appointment and the authorities of accounting officer's paymasters, the audits on them, and the books and documents they have to keep as well as other issues shall be arranged through a regulation to be issued by the Ministry of Finance.




Qualifications and Appointment of Accounting Officer

Article 62- (Amendment: 22.12.2005 - 5436/8 art.) Those to be appointed to perform the duty of the accounting officers should possess the following qualifications in addition to the qualifications set out under Article 48 of the Public Servants Law No 657:

a) To have graduated from at least a four-year-university,

b) To have performed the duty of the assistant accounting officer or equal duty at the public administrations provided they have served at least for four years in the accounting services of these administrations,

c) To have received accounting officer certificate,

d) To have no negative employment record during the last three years,

e) To have no penalty for deduction from salary and suspending of rank advance,

f) To possess the knowledge and presentation skills required by the duty.

Provided that they fulfill the criteria stipulated in the subparagraphs (c) (d) (e) and (f) of the foregoing paragraph and they have served at least for four years in the accounting services of these administrations, those to be appointed to perform the duty of accounting officer in district municipalities and in local administration unions with a population of less than 25000 shall be eligible so long they have graduated from at least high school.

Without prejudice to the provisions of Law No 4059 dated 9/12/1994, accounting officers in the public administrations within the scope of general budget shall be appointed by the Ministry of Finance, and in other public administrations by the head of the public administration.

Those to be accounting officers shall be given professional training by the Ministry of Finance taking into account the characteristics of the duty and those having successfully completed these trainings shall be awarded a certificate.

The training of the accounting officers, procedures and principles governing the issuing of certificates shall be prepared by the Ministry of Finance and arranged by a regulation issued by the Council of Ministers.
Internal Audit
Article 63- (Amendment: 22.12.2005 - 5436/10-a art.) Internal audit is an activity of providing independent and objective assurance and consultancy, performed in order to improve and add value to the activities of the public administrations by evaluating whether the resources are managed in conformity with the principles of economy, effectiveness and efficiency, and by providing guidance. Such activities are performed with a systematic, regular and disciplined approach and in accordance with generally accepted standards, aiming to evaluate and improve the efficiency of risk management and of management and control processes on the management and control structures and financial transactions of administrations.
(Amendment: 22.12.2005 - 5436/10-b art.) Internal audit is performed by the internal auditors. Taking into account the structure and personnel number of public administrations, upon the positive opinion of the Internal Audit Coordination Board, internal audit units may be established, which are directly subject to the head of the public administrations.
Duties of Internal Auditors
Article 64- Annual internal audit program of public administrations shall be prepared by the internal auditors by considering the proposals of heads of public administrations, and shall be approved by the head of public administration.
The following are the duties of internal auditors shall perform the following duties:
a) To evaluate the management and control structures of the public administration on the basis of objective risk analysis,
b) To make studies and proposals with regard to economic, efficient and effective utilization of resources,
c) To perform ex post audits on legal compliance,
d) (Amendment: 22.12.2005 - 5436/10-a art.) To audit and evaluate the administrations' expenditures, decisions and operations on financial transactions according to their compliance with the objectives, policies, development plan, programs, strategic plans and performance programs.
e) To perform system audit on the processes of financial management and control, and to make proposals thereon,
f) In the framework of audit results, to make proposals regarding the ameliorations,
g) To report to the highest administrator of the administration concerned if a case requiring an investigation is observed during the audit or according to audit results.
The internal auditor performs his/her duties in line with the internationally accepted control and audit standards defined by the Internal Audit Coordination Board.
Internal auditor performs his/her duties independently and no other duty, out of his/her primary duty can be assigned or commissioned to the internal auditor.
Internal auditors submit their reports directly to the heads of public administration. Following the evaluation of the head of administration, these reports shall be given to the concerned units and financial services unit for taking necessary action. Internal audit reports and the actions taken about them shall be sent by the head of public administration, latest in two months to the Internal Audit Coordination Board.
Qualifications and Appointment of Internal Auditor
Article 65- The officials to be appointed as internal auditors must possess the following qualifications in addition to the qualifications set out under Article 48 of the Civil Servants Law No 657:
a) To have graduated from at least a four-year-university in one of the areas to be determined by the Internal Audit Coordination Board considering the particularities of the public administration concerned.
b) To have served at least for five years as audit personnel in a public administration or worked at least for eight years in areas to be determined by the Internal Audit Coordination Board.
c) To possess the knowledge, qualification and presentation skills required by the profession.
d) Other conditions required by the Internal Audit Coordination Board.
Those to be appointed as internal auditors in public administrations shall receive professional training from the Ministry of Finance under the coordination of the Internal Audit Coordination Board. The training program shall be prepared in a manner to provide adequate knowledge to the internal auditor candidates on auditing, budgets, financial control, public procurement legislation, accounting, personnel legislations, EU legislations and other professional issues. Those having successfully completed such training shall receive certificates. The duration, subjects and post-training procedures of the training program for the internal auditor candidates shall be arranged through the regulation to be prepared by the Internal Audit Coordination Board and issued by the Ministry of Finance.
(Amendment: 22.12.2005 - 5436/10-a art.) Internal auditors shall be appointed by the Minister in ministries and related administrations upon the recommendation of the heads of public administrations, and in other administrations by the heads of public administrations from among the candidates having certificates and shall dismissed from duty with the same procedure. The number of internal auditors for public administrations, their working procedures and principles and other related issues shall be arranged through the regulation to be prepared by the Internal Audit Coordination Board and issued by the Council of Ministers upon the proposal of the Ministry of Finance.
Internal Audit Coordination Board
Article 66- The Internal Audit Coordination Board affiliated with the Ministry of Finance consists of seven members. One of these members is proposed by the Prime Minister, one by the Minister in charge of the Undersecretariat of Treasury, one by the Minister in charge of the Undersecretariat of State Planning Organization, one by the Minister of Interior and three, including the chairman, by the Minister of Finance, and appointed for a period of five years by the Council of Ministers. Those who will be appointed to the Internal Audit Coordination Board should possess the qualifications necessary to carry out the tasks defined under Article 67. The person to be proposed by the Minister of Finance should be an academician having a doctoral degree in one of the branches including economics, finance, accounting or business administration. Members may be reappointed at the end of their terms.
If necessary, the Internal Audit Coordination Board may invite experts for technical assistance and consultancy with the condition of having no voting right. The working procedures and principles of the Board and other issues shall be arranged through a regulation to be proposed by the Internal Audit Coordination Board and to be issued by the Ministry of Finance.
Those who are assigned in this Board continue to carry out their primary duties. The Chairman and the members shall be paid, not to be more than four times a month, an attendance pay not exceeding the amount calculated by multiplying the index figure (3000) by civil servant monthly coefficient, for every day of meetings.
Duties of Internal Audit Coordination Board
Article 67- Internal Audit Coordination Board performs following duties in order to monitor the internal audit systems of the public administrations and to serve as an independent and impartial body:
a) To determine internal audit and reporting standards, and to prepare and develop audit guidelines.
b) To develop risk evaluation methods in line with international practices and audit standards.
c) To ensure cooperation with the audit units of public administrations.
d) To make proposals in order to take necessary measures for eliminating frauds or irregularities.
e) To make proposals to the public administrations for specific audits out of the program, which will be carried out by the internal auditors in risky areas.
f) To arrange the training programs of internal auditors.
g) To contribute to the settlement of conflicts in cases of divergence of opinions between the internal auditors and the heads of public administrations.
h) To evaluate the internal audit reports of the administrations and to consolidate their results in an annual report to be submitted to the Minister of Finance, and publicize it.
i) (Amendment: 22.12.2005 - 5436/10-a art.) To determine, according to the volume of the transactions and personnel number, whether internal auditors shall be appointed for administrations and district and village municipalities.
j) To determine other procedures on the appointment of internal auditors.
            k) To determine ethical rules to be followed by the internal auditors.
             l) (Amendment: 22.12.2005 - 5436/10-b art.) To prepare quality assurance and development program and to evaluate the internal audit units within this scope.
SIXTH PART
External Audit
   External Audit
Article 68- The purpose of the ex post external audit to be performed by the Court of Accounts is to audit, within the framework of the accountability of public administrations within the scope of general government, the financial activities, decisions and transactions of management in terms of their compliance with the laws, institutional purposes, targets and plans, and to report their results to the Turkish Grand National Assembly
   
The external audit is performed in accordance with the generally accepted international audit standards by carrying out the following:

a) On the basis of public administrations' accounts and relevant documents, to perform financial audit on the reliability and accuracy of financial statements, and to determine whether the financial transactions related to revenues, expenditures and assets of public administrations comply with the laws and other legal arrangements.

b) To determine whether the public resources are used in an effective, economic and efficient way, to measure the activity results and to evaluate them as to their performance.

  During the external audit, reports issued by the internal auditors of the public administrations shall be submitted to the information of the Court of Account auditors, if required so.

At the end of the audits, the reports on the issues stated in the subparagraphs (a) and (b) of second paragraph of this article shall be consolidated according to the administrations, and a copy shall be submitted to the relevant public administration and replied by the head of public administration. The Court of Accounts shall prepare the External Audit General Evaluation Report by taking into account the audit reports and replies given thereto, and present it to the Turkish Grand National Assembly.

The finalizations of accounts by the Court of Accounts means taking a decision on whether the revenue, expenditure and asset accounts and related transactions of the public administrations within the scope of general government are in compliance with the legal provisions.

Other issues on the finalization of external audit and accounts shall be stipulated in the relevant law.

(Amendment: 22.12.2005 - 5436/10-b art.)Audit on Turkish Grand National Assembly and Court of Accounts

Article 69- (Amendment: 22.12.2005 - 5436/10-b art.) Audit on Turkish Grand National Assembly and Court of Accounts is every year conducted on the basis of accounts and related documents, on behalf of the Turkish Grand National Assembly, by a commission which is composed of auditing staff having required professional qualifications and which is appointed by the Presidential Board of the Turkish Grand National Assembly.
SEVENTH PART
Sanctions and Authorized Bodies
Overspending 
Article 70- The authorizing officials who have delivered spending instructions which are against the budgets, the detailed expenditure programs or release rates or which are in excess of appropriation amounts stated in appropriation dispatch documents, without causing public loss, shall be subject to a fine amounting up to two times of the net monthly payment they earn including all kinds of salary, allowance, increase and compensation.
Public Loss
Article 71- Public loss is bringing an obstacle to the increase or causing a decrease in the public resource as a result of a decision, transaction, action or negligence that violates the legislation.
When determining public loss, the followings are considered;
a) To make payments in excess of the amount determined as the price of works, goods or services,
b) To make payments without receiving the goods or without having the work or service done,
c) To make payments in excess or without reason, in the case of expenditures in the form of transfers,
d) To buy goods, works or services, or to have them done for a price higher than their market price,
e) Not to impose, accrue or collect the revenues of the administration in accordance with the legislations, 
f) (Abolishment: 22.12.2005 - 5436/10-c art.)
g) To make payments although not provided in the relevant legislations.
(Amendment: 22.12.2005 - 5436/10-a art.)  A public loss determined upon controls, audits, examinations, final sentence or trial shall be collected together from the relevant persons with its legal interest to be calculated according to the related legislation as of the date of the loss occurred.
Officials who bring an obstacle to the increase or cause a decrease in the public resource by issuing false documents where any money, goods or values which have not in fact been received appear to have been received, any services not rendered appear to have been rendered, or any construction, repair or manufacture works not executed or completed appear to have been executed or completed; and officials who deliberately issue, sign or approve such documents shall be subject to legal action pursuant to the relevant provisions of the Turkish Penal Code or other applicable laws. In addition, those having undertaken such actions shall be subject to a fine amounting up to two times of the net monthly payment they earn including all kinds of salary, allowance, increase and compensation.
The procedures and principles related to the compensation of public losses shall be defined in the regulation to be issued by the Council of Ministers upon the proposal of the Ministry of Finance.
Unauthorized Collection and Payment
Article 72- No real or legal person may collect any amount on behalf of the public, nor effect payment from the public revenues unless duly authorized pursuant to the laws.
In the events of unauthorized collection or payment, collection of any donation or grant in exchange of or in connection with a public service by using public authority, or any other collection or payment under similar denominations, such amounts shall be collected from those having performed unauthorized collection or payment, and according to its relevance recorded as revenue in the budget, or recorded in custody accounts to be returned to the concerned persons. In addition, necessary legal and administrative procedures shall be applied to the aforementioned persons pursuant to the relevant laws.
Fines and Authorized Bodies
Article 73- The fines stipulated herein shall be imposed by the heads of relevant public administrations. Fines shall be collected by deducting one fourth of all payments earned by the relevant persons including all kinds of salary, allowance, increase and compensation beginning from the month following the imposition of the fine and without requiring any further judgment.
Prescription
Article 74- (Amendment: 22.12.2005 - 5436/10-b art.) Starting from the beginning of the fiscal year following the occurrence of the public loss and of the action to be punished by the mentioned fine, public losses and fines that cannot be determined and, provided that the general provisions cutting and stopping the lapse of time are reserved, collected until the end of the tenth year shall be subject to prescription.
EIGHTH PART
Other Provisions
Services to be conducted by Ministry of Finance
Article 75- First paragraph (Abolishment 22.12.2005 - 5436/10-c art.)
In cases where there is a complete breakdown of the financial management and control system or there are indications of a major corruption or a public loss, upon the request of the concerned minister or upon the direct approval of the Prime Minister; the Minister of Finance may have authorized audit staff inspect the entire financial management and control systems, financial decisions and transactions of the public administrations as to their compliance with the legislations. A copy of the reports to be issued at the end of such inspections shall be sent to the Internal Audit Coordination Board, and another copy for taking required actions to the concerned Minister.
          Responsibility of Public Administrations
Article 76- Public administrations shall regularly keep all kinds of records, information and documents related to the financial decisions and transactions.
The public administrations and their officials are obliged to; submit the information and documents on the preparation, implementation, finalization, accounting, and reporting of the budget and on the financial management and control systems to the officials authorized to carry out audits; and take the necessary measures and provide any assistance and help ensuring that this duty is carried out properly.
Social Security Institutions and Local Administrations
Article 77- The preparation and the implementation of the budgets of social security institutions and local administrations and their other financial transactions shall be subject to the provisions of the relevant laws without prejudice to the provisions hereof. However, the detailed expenditure programs and financing programs of the social security institutions and those of local administrations shall be prepared, deliberated and approved together with their budgets, and the appropriations shall be utilized in this framework.
In cases where there is a complete breakdown of the financial management and control system or there are indications of a major corruption or a public loss, upon the request of the relevant governor for the special provincial administrations or of the mayor for the municipalities or upon the direct approval of the Prime Minister; the Minister of Interior may have authorized audit staff inspect the entire financial management and control systems, financial decisions and transactions of the public administrations as to their compliance with the legislations. A copy of the reports to be issued at the end of such inspections shall be sent to the Internal Audit Coordination Board, and another copy for taking required actions to the governor or mayor concerned.
Shares to be collected from Proceeds of Institutions
Article 78- An amount up to fifteen percent of the gross proceeds of state economic enterprises and public corporations shall be collected and recorded as revenue to the general budget. In this respect, the institutions and agencies from which such amounts shall be collected, the ratios of the shares from proceeds and the payment place and time shall be determined by the Council of Ministers. Shares from proceeds not paid in due time shall be collected according to the Law No 6183 dated 21/7/1953 with a late payment interest at a rate stated in the Council of Ministers. The late payment interest calculated shall be collected from the institution's or agency's officers who are authorized for the payment of such shares. However, no late payment interest shall be applied for the additional time granted by the Ministry of Finance.
(Amendment: 22.12.2005 - 5436/10-a art.) Revenue surplus to occur quarterly of the regulatory and supervisory agencies shall be transferred to the general budget until the fifteenth of the month following each quarter. The provision of this paragraph is applied also to the Istanbul Stock Exchange. In case the said amounts are not paid in time, the unpaid amounts are followed and collected by applying delay increase as per the provisions of the Law dated 21.7.1953 and No 6183.
Canceling Public Receivables

Article 79- The Minister of Finance for the public administrations within the scope of the general budget, and the heads of public administrations for other public administrations are authorized for the deletion of public receivables which are recorded in the administration's accounts but cannot be followed-up and collected due to any imperative or force majeuer reasons and which do not exceed the amount specified in the Central Government Budget Law. Public receivables exceeding specified amounts and envisaged to be deleted shall be indicated in the schedule annexed to the Central Government Budget Law.

Authority

Article 80- The Ministry of Finance is authorized to carry out the required arrangements regarding the enforcement of the provisions of this Law.

NINTH PART

Annulled Provisions, Provisional Articles and Enactment
Annulled Provisions
Article 81- Without prejudice to the provisions of the provisional articles of this Law;
a) General Accounting Law No 1050 and supplements and amendments thereof,
b) Articles 30, 32, 33, 36, and 37, and other provisions incompliant herewith, of the Court of Accounts Law No 832,
            c) Related to the public administrations within the scope of this Law, with the exception of Articles 98 – 106 of Law No 211 dated 4/1/1961, provisions of other laws that stipulate exception or exemption on the application of the General Accounting Law No 1050, Travel Allowance Law No 6245 and Court of Accounts Law No 832,
d) The third paragraph of Article 14 of Law No 4749 dated 28/3/2002,
e) Article 15 of Law No 4481 dated 26/11/1999,
f) Provisions of other laws that are incompliant with those of this Law
are annulled.
Provisional Article 1- In the public administrations where the financial transactions have been conducted by the Ministry of Finance until the entry into force of this article, the duties required to be performed according to this Law shall be conducted by the units of the Ministry of Finance until the establishment of financial management and control system defined by this Law. The transfer of authority to the administrations shall be realized upon the proposal of the Ministry of Finance on the basis of each administration when the criteria to be determined by the Ministry of Finance are fulfilled.

In other public administrations, until the establishment of financial management and control system defined by this Law, the duties related to the financial management and control process required by this Law shall be conducted by the units and officers having similar duties and authorizations. Units and officers having similar duties and authorizations in these public administrations shall be determined by the head of the concerned public administration upon the positive opinion of the Ministry of Finance.

In the framework of its guidance and coordination duties, the Ministry of Finance shall assist the establishment of financial management and control systems in public administrations.
            Transition period shall not exceed the date of 31/12/2007.
Provisional Article 2- The by laws, regulations and other arrangements referred hereto, shall be published latest by 31/12/2004.

             Provisional Article 3- Until the Board referred in Article 49 of this Law determines, the accounting standards to be applied in the public administrations within the scope of general government shall be defined by the Ministry of Finance.

Provisional Article 4- (Amendment: 22.12.2005 - 5436/10-a art.) In the view of adaptation to the financial management and control systems provided by this Law, the amendments required in the Bylaw of Turkish Grand National Assembly and in the legislations related to the administrations within the scope of this Law shall be made latest until 31/12/2007.

(Amendment: 22.12.2005 - 5436/10-a art.) The law that stipulates the activities of the public administrations within the scope of general budget, including those defined in their relevant laws apart from their public duties and services, and that stipulates the revenues obtained from their priceable good and service deliveries shall enter into force until 31/12/2007.

Provisional Article 5- (Amendment: 22.12.2005 - 5436/9 art.) As of latest 31/12/2005 and until 31/12/2007;

a) Those actually working in the positions of the Ministry of Finance as Head of Budget Office, Accounting Director, Revenue Accountancy Office Director, County Revenue Director, Accountancy Office Director, Tax Office Director, Tax Director, Military Treasurer, State Accounting Expert and Accounting Auditor and those who had occupied such positions for at least five years, may be appointed in public administrations as Accounting Officer and their assistants (except for Assistant State Accounting Experts and Assistant Accounting Auditors) and those whose cadre title is accountant as Assistant Accounting Officer,

b) Those actually working as principal responsibles in the accounting units of the special budget agencies, of the local administrations and of the social security institutions, and those having assumed for at least five years such positions as Head of Budget Office, Head of Revenue and Expenditure Department, Head of Accounting Department, Revenue Director, Budget Director and Accounting Director may be appointed as Accounting Officer in the mentioned administrations,

   c) Those actually working in the positions of Court of Accounts Auditor, Inspector of Prime Ministry, Auditor of High Auditing Board, Finance Inspector, Account Expert, Budget Controller, Accounting Controller, Revenues Controller, National Estate Controller, Controller of Liquidation Transactions and Revolving Fund Enterprises, Treasury Controller and those having assumed such positions for at least five years may be appointed in the public administrations as Internal Auditor,

   d) Those who are inspectors or controllers in the Ministries, Undersecretariats, Presidencies or General Directorates and those having assumed such positions for at least five years may be appointed as Internal Auditors in their own administrations, special budget agencies, local administrations or social security administrations,

   e) Those who are Accounting Auditors, National Estate Auditors and Tax Auditors, and those who have been previously at these duties for at least five years, may be appointed at special budget administrations and local governments; Municipality Inspectors and Accounts Comptrollers and those having assumed such positions for at least five years may be appointed in local administrations as Internal Auditor.

Those who are carrying out the accounting services of the public administrations as first degree responsible as of 31.12.2005 shall carry out their duty as accounting officer of their public administrations starting from 01.01.2006 until a certified accounting officer is appointed. These persons shall be appointed to an appropriate duty in their personnel in case they cannot get a certificate. However, until the appointment of an accounting officer in the administrations whose accountancy services are carried out by the budget offices, accounting services shall be performed by the persons to be determined by the Ministry of Finance. 
Those who will be appointed in order to perform the duty of the accounting officer mentioned in line (a) and (b) shall receive a professional training to be provided by the Ministry of Finance and successfully pass the examination and receive a certificate. However, from those appointed to the duties mentioned in line (a) and (b) the examination condition shall not be sought in their appointment as accounting officer.
Those appointed to the duties mentioned in line  (c), (d) and (e) shall be subject to the training for the application of the system foreseen by this Law. In the appointments, the consent of the concerned person and his/her administration shall be obtained.

Provisional Article 6 – (Abolishment: 22.12.2005 - 5436/10-c art.)

Provisional Article 7 – (Abolishment: 22.12.2005 - 5436/10-c art.)

Provisional Article 8- Chairman and Members of the Internal Audit Coordination Board shall be appointed within two months following the date of publishing of this Law.

Provisional Article 9- References made by other laws to the provisions of the General Accounting Law No 1050 shall be deemed to be made to this Law.

Provisional Article 10- The external audits on the transactions which the regulatory and supervisory agencies and the special budget agencies perform until 31/12/2005, and which are subjected to the audit of the Court of Accounts for the first time with this Law shall continue to be performed according to the provisions of their relevant Laws.

Provisional Article 11- The budgets of the revolving fund enterprises and funds affiliated with the public administrations within the scope of general government shall be included in the budgets of relevant administrations.

(Amendment: 22.12.2005 - 5436/10-a art.) Revolving fund enterprises established in the public administrations under the scope of this Law shall be restructured until 31/12/2007.

(Amendment: 22.12.2005 - 5436/10-a art.) Until the revolving fund enterprises are restructured, the preparation, application, finalization and accounting of their budgets and their control and audit shall be determined by the regulation to be enforced by the Ministry of Finance. Accounting of the funds shall be carried out in accordance with the accounting system foreseen by this Law.

Last paragraph (Abolishment: 22.12.2005 - 5436/10-c art.)   

Provisional Article 12- According to the first paragraph of Article 45, among the immovables that should be registered under the name of State Treasury, those which are owned by public administrations shall be registered ex officio in the land registry under the name of State State Treasury without any need for further transaction and within the six months following the end of legal entity of these public administrations.

Provisional Article 13- The Ministry of Finance shall determine in which chart each public administration established after the publishing of this Law will be included.

Provisional Article 14- For the effective and efficient fulfillment of the services required by this Law, the positions in List I annexed to this Law shall be created to be used in the General Directorate of Budget and Fiscal Control, Research, Planning and Coordination Board and Ministry of Finance High Training Center. These positions shall be added to the relevant sections concerning Ministry of Finance of List I annexed to Decree Law No 190, and the positions in List II annexed to this Law shall be annulled and removed from the sections concerning Ministry of Finance of List I annexed to the said Decree Law. The vice president to be assigned to Research, Planning and Coordination Board shall be appointed by the approval of the Minister, and shall exercise all the rights provided for deputy general directors in the relevant legislation.

ANNEXED ARTICLE: (Amendment: 22.12.2005 - 5436/11 art.) The accounting services of Turkish Grand National Assembly and Turkish Court of Accounts shall be rendered by the accounting officers assigned by the President of Turkish Grand National Assembly, whereas the accounting services of the Presidency of the Republic shall be rendered by the accounting officers assigned by the Secretary General of the Presidency.


CHART NO I
PUBLIC ADMINISTRATIONS WITHIN THE SCOPE OF GENERAL BUDGET
(Amendment: 22.12.2005 - 5436/12art.)

1-   Turkish Grand National Assembly
2-   Presidency of Republic
3-   Prime Ministry
4-   Constitutional Court
5-   Supreme Court of Appeals
6-   Council of State
7-   Court of Accounts
8-   Ministry of Justice
9-   Ministry of National Defense         
10-   Ministry of Interior
11-   Ministry of Foreign Affairs
12-   Ministry of Finance                   
13-   Ministry of National Education
14-   Ministry of Public Works and Settlement
15-   Ministry of Health
16-   Ministry of Transport
17-   Ministry of Agriculture and Rural Affairs
18-   Ministry of Labor and Social Security
19-   Ministry of Industry and Trade
20-   Ministry of Energy and Natural Resources
21-   Ministry of Culture and Tourism
22-   Ministry of Environment and Forestry
23-   General Secretariat of National Security Council
24-   Undersecretariat of National Intelligence Organization
25-   General Commandership of Gendarmerie
26-   Commandership of Costal Security
27-   General Directorate of Security
28-   Presidency of Religious Affairs
29-   Undersecretariat of State Planning Organization
30-   Undersecretariat of Treasury             
31-   Undersecretariat of Foreign Trade
32-   Undersecretariat of Customs             
33-   Undersecretariat of Marine             
34-   Secretariat General for the European Union Affairs
35-   Prime Ministry High Auditing Board               
36-   State Personnel Presidency
37-   Presidency of Administration for Handicapped
38-   Turkish Statistical Institute
39-   Presidency of Revenue Administration
40-   General Directorate of State Waterworks
41-   General Directorate of Highways
42-   General Directorate of Land Registry and Cadastre
43-   General Directorate of State Meteorology Affairs
44-   General Directorate of Agricultural Reform
45-   General Directorate for Forestry
46-   General Directorate for Petroleum Affairs
47-   General Directorate of Press-Publication and Information
48-   General Directorate of Social Assistance and Solidarity
49-   General Directorate of Social Services and Child Protection Association
50-   General Directorate of Family and Social Research
51-   General Directorate on the Status and Problems of Women
52-   Presidency of Social Security Institution

CHART NO II
SPECIAL BUDGET ADMINISTRATIONS
(Amendment: 22.12.2005 - 5436/12art.)

A) COUNCIL OF HIGHER EDUCATION, UNIVERSITIES AND HIGH TECHNOLOGY INSTITUTES

1-   Council of Higher Education
2-   Student Selection and Placing Center
3-   Istanbul University
4-   Istanbul Technical University
5-   Ankara University
6-   Karadeniz Technical University
7-   Ege University
8-   Ataturk University
9-   Middle East Technical University
10-   Hacettepe University
11-   Bogaziçi University
12-   Dicle University
13-   Çukurova University
14-   Anadolu University
15-   Cumhuriyet University
16-   Inönü University
17-   Fırat University
18-   19 Mayıs University
19-   Selçuk University
20-   Uludağ University
21-   Erciyes University
22-   Akdeniz University
23-   9 Eylül University
24-   Gazi University
25-   Marmara University
26-   Mimar Sinan Fine Arts University
27-   Trakya University
28-   Yıldız Technical University
29-   100. Yıl University
30-   Gaziantep University
31-   Abant İzzet Baysal University
32-   Adnan Menderes University
33-   Afyon Kocatepe University
34-   Balıkesir University
35-   Celal Bayar University
36-   Çanakkale 18 Mart University
37-   Dumlupınar University
38-   Gaziosmanpaşa University
39-   Gebze High Technology Instıtute
40-   Harran University
41-   Izmir High Technology Institute
42-   Kafkas University
43-   Kahramanmaraş Sütçü İmam University
44-   Kırıkkale University
45-   Kocaeli University
46-   Mersin University
47-   Muğla University
48-   Mustafa Kemal University
49-   Niğde University
50-   Pamukkale University
51-   Sakarya University
52-   Suleyman Demirel University
53-   Zonguldak Karaelmas University
54-   Eskişehir Osmangazi University
55-   Galatasaray University


B) OTHER SPECIAL BUDGET ADMINISTRATIONS
(Amendment: 22.12.2005 - 5436/12 art.)

1-   Undersecretariat of Defense Industry
2-   Presidency of High Agency of Atatürk Culture, Language and History
3-   Turkey and Middle-East Public Administration Institute
4-   The Scientific and Technical Research Council of Turkey
5-   Turkey Sciences Academy
6-   Turkish Justice Academy
7-   General Directorate of Credit and Dormitories Agency
8-   General Directorate of Youth and Sport
9-   General Directorate of State Theatres
10-   General Directorate of State Opera and Ballet
11-   General Directorate of Foundations
12-   General Directorate of Health for Borders and Coasts
13-   Electric Power Affairs and Study Administration
14-   General Directorate of Mining Study and Research
15-   Directorate General of Civil Aviation
16-   Turkish Accreditation Agency
17-   Turkish Standards Institute
18-   National Productivity Center
19-   Turkish Patent Institute
20-   National Boron Research Institute
21-   Turkish Atomic Energy Agency
22-   Presidency of Development and Support of Small and Medium Size Enterprises Administration
23-   Center for Studies for Developing Exports
24-   Turkish Presidency of Cooperation and Development Administration
25-   Presidency of Special Environmental Protection Agency
26-   Presidency of GAP Regional Development Administration
27-   Presidency of Privatization Administration
28-   Agency for Workshops in Punishment and Execution Establishments and Custodies


CHART NO III
REGULATORY AND SUPERVISORY AGENCIES
(Amendment: 22.12.2005 - 5436/12art.)
1.   Radio and Television High Council
2.   Telecommunication Agency
3.   Capital Markets Board
4.   Banking Regulation and Supervision   Agency
5.   Energy Market Regulation Board
6.   Public Procurement Agency
7.   Presidency of Competition Agency
8.   Tobacco, Tobacco Products and Alcoholic Beverages Market Regulation Agency

CHART NO IV
SOCIAL SECURITY INSTITUTIONS
(Amendment: 22.12.2005 - 5436/12art.)
1-   General Directorate of Pension Fund
2-   Presidency of Social Insurance Institution
3-   General Directorate of BAG-KUR (Social Security Institution for Craftsmen, Artisans, and Other Self-Employed)
4-   General Directorate of Turkish Labor Agency

#97
LAW FOR THE ENCOURAGEMENT OF TOURISM

Law No: 2634
Date of Passage: 12 March 1982  Official Gazette No: 17635
Date of Official Gazette: 16 March 1982


SECTION ONE
Purpose, Scope and Definitions

Purpose

ARTICLE l - The purpose of this Law is to ensure that necessary arrangements are made and necessary measures are taken for the regulation and development of the tourism sector and for giving this sector a dynamic structure and mode of operation.

Scope

ARTICLE 2 - This Law comprises provisions governing the tourism sector, including definitions of cultural and tourism preservation and development regions, tourism areas and tourism centres and means of estabishment and development of such regions, areas and centres and of encouragement, regulation and inspection of tourism investments and facilities.

Definitions

ARTICLE 3 - The following terms shall have the meanings given here when used in this Law:

a) "Ministry": The Ministry of Culture and Tourism;

b) "Cultural and Tourism Preservation and Development Regions": The regions having a high potential for tourism development, and intensive historical and cultural importance, that are to be evaluated for the purpose of preservation, utilisation, sectoral development and planned improvement and the boundaries of which are determined and declared by the Council of Ministers upon the proposal of the Ministry.

c) "Tourism Centres" : The parts or places specified to be developed on a priority basis within or outside the cultural and tourism preservation and development regions, and are of importance for tourism movements and activities, locations, sites and the boundaries of which are determined and announced by the Council of Ministers upon the proposal of the Ministry.

d) "Tourism Establishments": Commercial ventures operating in the tourism sector jointly or individually established by real or legal persons of Turkish or foreign nationality;

e) "Tourism Investment Certificate": Certificate issued by the Ministry to investors in the tourism sector for a specific investment period;

f) "Tourism Establishment Certificate": Certificate issued by the Ministry to establishments operating in the tourism sector,

g) "Certified Tourism Investments and Establishments" : Investments or establishments for which certificates have been issued by the Ministry;

h) "Yachts" : Vessels registered as yachts in Certificates of Measurement and, in the absence of such Certificates of Measurement, all other sea-going vessels used for sports and excursions but not qualified for passenger and cargo transportation.

i) "Cultural and Tourism Preservation and Development Sub-Region": Lands which contain various tourism types with at least one or more of the following technical and social infrastructures such as culture, education and training, entertainment, trade, housing, determined by a scale of 1/25 000 or less and those can be divided into sub-lands.


SECTION TWO
General Provisions

Determination of Cultural and Tourism Preservation and Development Regions, Tourism Areas and Tourism Centres

ARTICLE 4 - In the determination of cultural and tourism preservation and development regions, tourism areas and tourism centres, account shall be taken of the natural, historical, archaeological and socio-cultural tourism assets of the country and her potential for winter, hunting and water sports, for health tourism and for other types of tourism.
Procurement of Certificate

ARTICLE 5 -

a) It shall be compulsory to procure either a tourism investment certificate or a tourism establishment
certificate in order to benefit from the incentives, exceptions, exemptions and rights prescribed in this law and other enactments.

b)Investments with certificates shall commence, be completed and be put into operation within the
periods of time specified by the Ministry. However, such periods may be extended in cases of circumstances of force majeure acknowledged by the Ministry.

Preservation and Utilisation of Natural Tourism Resources

ARTICLE 6 - Such structures and facilities as may contribute to the preservation and utilisation, in the interests of the public, of state-owned and controlled sites may be constructed and operated in cultural and tourism preservation and development regions and tourism centres in accordance with the land use plans, subject to the conditions outlined in article 8 below and wihout the need to have a title deed, provided, however, that the certificates referred to in article 3 hereof have already been obtained.
Other structures, buildings and facilities may also be constructed and operated, in the interests of the general public subject to the prior permission of the Ministry, in state-owned and controlled sites in cultural and tourism preservation and development regions and tourism centres, provided that such structures, buildings and facilities shall not disrupt the
natural and cultural features of the region or harm tourist enterprises, and that they conform to the land use plan.
Seas, lakes and streams and their shores and banks may not be exploited in such a way as may spoil or destroy their characteristics. The exploitation of such resources, for example through extraction of sand, gravel and rocks, shall be conditional upon obtaining the permission from the Ministry, subject to prior approval of the Turkish Naval Forces Command pursuant to Law no 1738 concerning Navigation and Hydrographical Services.

Plans

ARTICLE 7 - Within the cultural and tourism preservation and development regions and tourism centres, The Ministry is authorised to make or to get made, to modify and to approve sua sponte, the plans of all scales.

To provide the base for infrastructure and planning process of the cultural and tourism preservation and development regions and tourism centres done by the Ministry, the information, documents and comments requested from the other public institutions and organisations shall be presented within a period of 3 months. The related works and transactions shall be realised sua sponte by the Ministry if the requested information, documents and comments are not submitted following the expiry of this period.

In the cultural and tourism preservation and development regions and in tourism centres; the sales, allocations, leases, operations related to border announcements and their modification which will be carried out by other public institutions and organisations and the structural projects which create environmental effects, are subject to the approval of the Ministry in advance.

The related principles and procedures regarding the implementation of this Article is regulated by the by-law which will be issued by the Ministry.

Use of Immovable for Tourism Purposes

ARTICLE 8 - A) Of the immovable in such places falling within tourism areas and tourism centres as have been allocated for tourism at the request of the Ministry and for which land use plans have been prepared:

(1)Forests and those owned by the Treasury shall be allocated to the Ministry by the institutions concerned.

Such allocations shall be completed after the completion of the following formalities and within one month of the date of the request:

(a) Sua sponte registration of roads and excess roads covered by lands owned or controlled by the State but not yet registered in the name of the Treasury;

b) Allocation of forests for tourism and amendment of management plans thereof.

2) Those owned by public organisations shall be registered with the Land Registry in the name of the Treasury and allocated to the Ministry within not more than two months of the date of demand. Conditions and terms of payment relating to such assignments shall be agreed upon by and between the
Ministry and institutions concerned in accordance with article 30 of Expropriation Law no. 6830.

3) Those owned by other real or legal persons and by foundations but which do not have a tourism establishment certificate shall be expropriated and registered with the Land Registry in the name of the Treasury by the Ministry and shall be transferred, within one month of such registration, to the Ministry. In
the event of any disputes, litigation and proceedings shall be carried out and concluded not on the grounds of the expropriation decision but on the grounds of the price assessed therefore. The fact that a dispute may not have been settled shall not prevent the land in question from being allocated for use for tourism
purposes.

(B) The Treasury shall not demand any payment from the Ministry until such time as immovable allocated in accordance with paragraph (A) above are transferred to the investors.

C) Principles, terms and prices to apply to the allocation and lease of such immovable to investors, the establishment of easement and termination of rights thereon and other conditions relating thereto shall
be laid down jointly by the Ministry, the Ministry of Finance and the Ministry of Agriculture and Forestry, which shall be under no obligation to comply with the provisions of Tendering and Bidding Law no. 2490 and Forestry Law no. 6831,

D) In accordance with the provisions of the paragraph C above, the Ministry is authorized to allocate the immovable properties to real and legal entities of Turkish and foreign nationality.

To institute the rights of easement, including autonomous and permanent right of construction on these immovable properties, and among those rights required for infrastructure, establishing the unpaid easement in favour of the public institution which will realise the infrastructure, will be established upon the approval of the Ministry, by the Ministry of Finance on the conditions determined by this Ministry.

E) The acquisiton of immovable in cultural and tourism preservation and development regions and tourism centres may be exempted, by
decision of the Council of Ministers, from the restrictions on foreign nationals imposed by Villages Law no 442 and Real Estate Law no. 2644.

F) The provisions of this article shall also apply upon the Ministry's request to immovable at such places within the cultural and tourism preservation and development regions but outside the tourism areas and tourism centres as are allocated to tourism by the land use plans of the locality if and when an application is filed with the Ministry for an investment in such places.

G) Tourism, training and recreation enterprises and allocations on the lands which belong to the public institutions within the cultural and tourism preservation and development regions and tourism centres are abolished by the administration that has assigned the allocation, upon the proposal of the Ministry, with the approval of the Ministry of Finance and its disposal rights are granted to the Ministry.

H) The whole of the cultural and tourism protection and development region, or sub-region defined by plans or one or more of their plots can be allocated by the Ministry in accordance with the purpose of the plan. The allocation of the whole region or the sub-region to a main investor is put in force by the decision of the Council of Ministers and pre-permission is given to this investor by the Ministry. In case of approval of the project of the investor by the Ministry, following the arrangement of the investment license, the pre-permission is turned into the final permission by the Ministry.

In favour of the main investor, the rights of easement including the autonomous and permanent right of construction for the immovable properties, is established by the approval of the Ministry under the conditions determined by the Ministry of Finance and realised by this Ministry.

The land use plans for the whole region or the sub-regions, are made/get made and approved by the Ministry. The plots formed by these plans, provided that it is foreseen in the allocation agreement and do not exceed the allocation period; can be leased, can get managed or the right of construction established in the Land Registry can be transferred to the third bodies by the investor to whom the right of the autonomous and permanent right of construction have been established. Every kind of building, establishment and also their independent parts constructed in the areas, allocation of which is established in the mentioned way are subject to the same procedure. Obtaining investment and establishment licences for the types and establishments, which can be licensed by the Ministry in these areas are compulsory.

The main investor is responsible for fulfilment of the obligations of the third bodies rising from the allocation agreement and its conditions. In case of the fact that the actions and operations of the main investor and third bodies contradict with the provisions related to the cancellation of the allocation mentioned in the agreement which will be signed between the Ministry and the related public institutions/organisations, the allocation established to the main investor and /or third bodies is abolished by the way it is allocated. In case of the cancellation of the allocation assigned to the main investor, the rights of the third bodies who fulfilled the liabilities according to the allocation agreement are protected. The guarantee which is the proportion of the project price defined in the allocation agreement will be given by the main investor to the Ministry before the final allocation. In case of impairment of the social and technical infrastructural obligations mentioned in the allocation agreement by the main investor, these obligations will be implemented by the Ministry through procedures determined by the Ministry by turning this guarantee into cash money. The responsibility of the Ministry towards the third bodies is limited with this guarantee.

I) The construction, establishment and auxiliary buildings situated on the land whose allocation is cancelled or allocation period is over are passed to the Treasury without consideration. The investor may not claim any right or payment for these.

The Ministry can demand the construction of the social and technical infrastructure services that will be realised on the allocated areas, as a whole or in part, or request the investor to cover the cost, as the allocation condition.

J) The urgent expropriation may be realised in accordance with Article 27 of Expropriation Law No. 2942, for the purpose of allocating the lands and plots, qualified as private properties within the Cultural and Tourism Protection and Development Regions, for tourism investments. The immovable properties which are expropriated in this way are registered in the name of Treasury in the Land Registry. The right of easement on these expropriated immovable properties including autonomous and permanent right of construction will be established for the sake of the investors for the period defined in the agreement and in return of its value if the expropriated costs are covered by the budget of the Ministry or with the costs which will be determined in accordance with the principles set forth in the agreement if it is covered by the investors, upon the approval of the Ministry, by the Ministry of Finance and in accordance with the principles determined by this Ministry.

K) The areas belonging to the same investor or enterprise or using the brand name of the same enterprise can be rented, can get managed, or the right of construction established in the Land Registry can be transferred to the third bodies by the investor, in the name of whom more than one allocation has been made and in favour of whom autonomous and permanent right of construction has been established in order to realise tourism types which shall be licensed by Ministry, provided that each of these allocations remain in the same enterprise chain.

L) The principles and the procedures concerning the implementation of this article are governed by the regulation issued by the Ministry, within the framework of the paragraph (C), encouraging the direct foreign capital investment, bringing in the international brands, chains, technology and the standards to the country, effective area management, quality control and taking into consideration the sustainable tourism principles in compliance with social, cultural and physical environment.

Public Investments

ARTICLE 9 -

(a) Infrastructural requirements of tourism areas and tourism centres, such as roads, water supply, sewage, electricity and telecommunication facilities, shall be completed by the public organisations concerned on a priority basis. Allowances allocated by the Ministry or organisation concerned to this end may not be utilised for other purposes without the prior consent of the Ministry.

(b) Public organisations shall not programme any investments directed towards tourism operations without the prior consent of the Ministry.

Price Lists

ARTICLE 10 - General principles concerning the preparation and approval of lists of prices to be charged by certified establishments shall be set out by the Ministry. Such establishments shall submit to the Ministry not later than the end of July each year the price lists they plan to implement during the following calendar year.
Certified establishments may not charge prices other than those given in the lists approved by the Ministry. Such establishments shall post the approved lists in easily visible places in accordance with the principles set out by the Ministry and shall present them upon request.

Notification

ARTICLE 11 - Investors and operators holding tourism certificates shall obtain the prior permission of the Ministry for any transfer or leasing out, in part or in whole, of the establishment with which the certificate is concerned and for any amendment, in part or in whole, of the ownership structure and field of activity of the establishment; it shall be a condition of any such amendment that the establishment shall continue to be a tourist establishment.
Furthermore, investors holding tourism certificates shall, during the investment period, notify the Ministry twice a year of the progress of their investment, while establishments holding tourism certificates shall submit data to be used in the determination of Turkey's tourism figures to the Ministry on a quarterly basis.

Triptyques or Carnet de Passage Services:

ARTICLE 12 - (Rescinded by Law no 2817, dated 18.4.1983)

SECTION THREE
Principles and Provisions Concerning Incentives

Principles of Encouragement and Co-ordination

ARTICLE 13 - Incentives in the tourism sector, and procedures and principles concerning the ways in which tourism investments and establishments may benefit from such incentives shall be specified jointly by the ministries concerned and the Undersecretariat for the State Planning Organisation under the co-ordination of the Ministry.
Priority for investments shall be, in descending order: tourism areas, tourism centres, cultural and tourism preservation and development regions and other sites designated by the Ministry.
Of the certified tourism establishments, those earning foreign exchange in the amounts that are specified annually by the Ministry for this purpose shall be regarded as exporters.

Tourism Loans

ARTICLE 14 -

(a) Tourism loans shall be allocated, on a priority basis, to investments made in tourism areas and tourism centres.

(b) The Tourism Bank Inc. of the Republic of Turkey may obtain foreign currency loans from foreign sources for allocation to certified investments in tourism areas and tourism centres .

The terms and conditions agreed upon for the loans made available by the Treasury shall also apply to loans obtained in this way, and general principles concerning the allocation and repayment of such loans shall be established jointly by the Ministry, the Ministry of Finance and the Undersecretariat for the State Planning Organisation.

Payment of Contributions to Forestry Fund in Instalments

ARTICLE 15 -The sum payable by certified tourism establishments located in forests pursuant to paragraph (c) of supplementary article 3 of Forestry Law no 6831 shall be paid, starting in the third year of allocation, in five equal instalments over a period of five years.

Rates of Utilities

ARTICLE 16 - (Amended: Law No. 3754) Certified tourism investments and establishments shall pay for utilities such as electricity, gas and water at the lowest of the rates that apply to the industrial facilities and homes in the locality.

Communication Facilities

ARTICLE 17 - Any and all procedures and allocations in connection with requests of certified tourism investments and establishments for telephone and telex facilities shall be carried out on a priority basis.
Employment of Personnel

ARTICLE 18 -

(a) Certified tourism establishments may employ qualified foreign personnel and experts with the approval of the Ministry and the Ministry of Interior, and provisions of Law no 2007 concerning the Trades and Services to be Performed in Turkey by Turkish Citizens shall not apply to such personnel.
However the total number of foreign personnel so employed may not be higher than 10% of the total number of employees. This ratio may be increased to up to 20% by the Ministry. The personnel in question may start working at the establishment 3 months prior to the date when it commences commercial operations.

(b) The employment of personnel aged under 21 at certified tourism establishments and covered by Law no 2559 concerning the Duties and Powers of the Police shall be subject to the prior permission of tne highest civil authority of the locality.

Sale of Alcoholic Beverages and Games of Chance

ARTICLE 19 -

(a) Certified tourism establishments shall be exempt, subject to the permission of the Ministry, from the provisions of article 178 of Public Health Law no 1593 and of article 61 of Elementary Training and Education Law no 222 which concern the sale of and licences for alcoholic beverages.
Minors aged under 18 may, if accompanied by their parents, be admitted into certified tourism establishments under Law no 2559 concerning the Duties and Powers of the Police on condition that the Ministry has granted prior permission to this effect.

(b) The Ministry shall be authorised to designate gambling places and to grant permission to the persons that are to operate such places provided that such places are complementary to certified tourism establishments. The Ministry shall decide who, other than those holding foreign passports, may be admitted
into such places and under what conditions.

Official Holidays, Weekends and Lunchtimes

ARTICLE 20 - Certified tourism establishments and sales stands exclusively for the sale of services under such certificates shall, during the working hours specified in the certificate issued by the Ministry, maintain their operations throughout official holidays, weekends and lunch times.

Tourism Development Fund

ARTICLE 21 - A "Tourism Development Fund", attached to the Ministry, is hereby established for the purpose of supporting tourism investments to be made in cultural and tourism preservation and development regions and tourism centres with loans with maximum repayment periods of 20 years for up to 15% of the total investment cost and expenditures on the development of foreign marketing opportunities.

Revenues of the Fund

ARTICLE 22 - Revenues of the Tourism Development Fund shall be composed of:

(a) Annual appropriations allocated from the Ministry's budget for this purpose;

(b) That portion of the profits of the Tourism Bank Inc. of Turkey that corresponds to the Treasury's share;

(c) Interest on loans to be extended out of the Fund;

(d) A certain share, to be fixed by tbe Council of Ministers, of the revenues derived from triptyques or customs pass cards (camets de passage); (*)

(e) Fines to be imposed on tourism establishments in accordance with this Law;

(f) Service participation revenues and other aids and donations.

Use of the Fund

ARTICLE 23 - The Tourism Development Fund shall be utulised by the Tourism Bank Inc. of the Republic of Turkey.
Expenditures to be made out of this Fund shall not be subject to the provisions of General Accounting Law no 1050 and Tendering and Bidding Law no 2490.
The authority to make payments out of the Fund shall belong to the Minister of Culture and Tourism.
The fund shall be subject to auditing by the Ministry of Finance.

Provisions as to Incentives in the event of Transfer

ARTICLE 24 - Those taking over the certified tourism investments and establishments on the condition that the purpose and nature thereof are not affected by such transfer shall benefit, subject to the prior permission of the Ministry, from the same incentives.

Incentives in the Event of Termination of Tourism Activities

ARTICLE 25 - In cases where certified tourism investments and establishments may terminate their tourism activities and not resume such activities within a one-year period, they shall be liable, pursuant to the provisions of relevant enactments, to repay the monetary equivalent of the exemptions, exceptions and rights to which they became entitled under the incentive arrangements.
If, however, establishments terminate their activities by reason of circumstances of force majeure such as war, natural disasters and epidemics, the Ministry may waive their obligations of repayment, subject to the approval of the Ministry of Finance and the Undersecretariat for the State Planning Organisation

SECTION FOUR
Yachting Tourism

Operation of Marinas

ARTICLE 26 - Real or legal persons may operate marinas subject to the obtention of the necessary certificate from the Ministry. However, in operations to be established by foreigners, at least one of the shareholders in such undertaking must be a real or legal persons of Turkish nationality.

Yacht Operation

ARTICLE 27 -

(a) Real or legal persons may operate yachts subject to the obtention of the necessary certificate from the Ministry. The Ministry shall be authorised to grant permission, without having to comply with the provisions of article 823 of Turkish Commercial Law No. 6762, to hoist the Turkish Flag on those yachts
which are otherwise unable to do so.

(b) Principles concerning the use of foreign-flag yachts along the Turkish coasts and between Turkish harbours shall be determined by the Council of Ministers as may be required.

Principles of Navigation in Territorial Waters

ARTICLE 28 -

(a) Yachts coming in from foreign harbours to Turkish harbours and yachts leaving Turkish territorial waters en route to foreign harbours shall have to make their entry and exit through designated customs entry and exit points.

(b) Statements made and procedures fulfilled in accordance with the provisions of Articles 34, 35 and 41 of Customs Law No. 1615 by foreign-flag yachts coming in from foreign harbours or spending the winter in Turkey at the first harbours they call at or the last harbours at which they lay anchor for winter shall also
count as valid at any other Turkish ports they may subsequently call at.

(c) Sanitary formalities carried out on yachts at any Turkish port shall remain valid for a period of one year and visas shall not be required of such yachts unless they call at a foreign port. However the nearest harbour administration or civil authority shall be informed immediately in the case of any death or
the outbreak of any contagious disease.

(d) Foreign-flag yachts and yachts used by foreign nationals may in regions determined and announced by the Council of Ministers with the agreement of the Turkish General Staff:

(i) cruise on routes shown in their cruise documents, and

(ii) call and anchor at harbours along the route where there is no customs office, without any restrictions for sight-seeing purposes.

Duration of Stay in Turkey of Yachts and Cabotage Rights

ARTICLE 29 - Foreign-flag yachts may stay up to two years in Turkey for maintenance, repair, docking or wintering purposes. This period may be extended in accordance with principles to be determined by the Council of Ministers.
Turkish-flag yachts of certain specifications, to be determined jointly by the Ministry of Transport and Communications and the Ministry, may be chartered to foreign nationals for such purposes as excursion, sport or entertainment. The use of yachts so chartered for commercial purposes is forbidden.
The use of foreign-flag yachts for excursion, sport and entertainment purposes shall not be regarded as commercial passenger transportation.

CHAPTER FIVE
Inspection and Penalties

Authority for Inspection

ARTICLE 30 - (Amended: Law No. 3492) The Ministry shall be exclusively authorised to inspect investments and establishments holding tourism certificates, to check those characteristics of such investments and establishments on the basis of which certificates are issued and to establish whether they maintain such characteristics as well as to categorise such establishments.

If the Ministry deems it necessary, matters on the basis of which inspections and classifications are to be made may be determined by real or legal experts designated by the Ministry. However, the Ministry shall take and implement any and all decisions based on such examinations. The qualifications of the experts, the principles and procedures for designating them, their functions and powers and the principles concerning the conduct of their examinations shall be specified in a regulation.
In cases when it so deems necessary, the Ministry shall also have examinations carried out on its behalf in accordance with the principles set forth above, to serve as the basis for inspections of investments and establishments not holding tourism certificates, in which case it shall inform the relevant authorities so that appropriate action may be taken.

Fees payable to experts to be appointed from outside the Ministry shall paid out of the Tourism Development Fund.

Penalties

ARTICLE - 31
(a) Without prejudice to any penalties that may be imposed under other legislation, certified tourism investments and establishments failing to comply with the provisions hereof or the conditions laid down in the regulations concerning the enforcement of this Law shall be liable to the penalties described below.
(b) The fines referred to in article 33 below shall be assessed by the inspection officials and copies of minutes indicated the fine imposed shall be forwarded to the establishment in question and to the nearest
tax office in order to ensure payment thereof within 7 days.
Fines remaining unpaid within this period of time shall be recovered pursuant to the provisions of Law no 6183 concerning the Procedure of Payment of Public Claims.
No objection raised or litigation entered into against such fines shall serve to halt the collection thereof.

Warnings
ARTICLE 32 - Holders of tourism certificates may be warned either by the inspectors or by the Ministry on account of faults, failures and deficiencies observed in the management and administration of the tourism investments and establishments.

Fines (The fines applicable in cases indicated in Article 33 were increased by 100% by Council-of-Ministers decision 85/9621 of 27 June 1985. The fines envisaged by Articles 33 and 36 are increased every year under Laws 3506 and 3591 of 7 December 1988 and 6 December 1989, respectively.)

ARTICLE 33 - Fines shall be imposed on the certificate holders, in the cases and amounts given below :

a) A fine of five hundred million Turkish Liras in cases when required corrective action has not been taken despite a warning or when more than one act is noted or when information required to be reported to the Ministry is not furnished in time or when misleading information is furnished.

b) A fine of five hundred million Turkish Liras when a part or the whole of the establishment is kept closed continuously for a period of more than thirty days in a year without informing the Ministry.

c) A fine of one billion Turkish Liras in cases when the Ministry or the customers are misled by means of written material, advertisement, posters, brochures and similar devices or using deceptive title or when the committed service is not given to the customer or negligence of same or when the same service which is provided to be given in another establishment with at least equivalent qualification is not offered. Provisions of specific legislation are reserved.

d) A fine of one billion Turkish Liras in cases where it is established that offence has been committed on the premises with the involvement, fault or negligence of the proprietor or the person in charge or the personnel, regarding the protection of either personal security or the security of the property of the customer.

e) Provided that the provisions of specific legislation related to the investments and establishments allocated by the Ministry are reserved, a fine of one billion Turkish liras in cases of transferring of whole or part of investment or enterprise, rent or changing partnership statute, title or type without permission.

f) A fine of 20 times the excess amount charged when amounts have been charged in excess of the price indicated in approved price lists.

Excluding the fines applied in accordance with the paragraph f; within one year following the notification of a fine, in the case of a second fine due to an occasion calling for a fine, an amount equivalent to the total of the first and the second fines will be levied, and if another act calling for a fine is occurred for the third time, a fine equivalent to the total of the first, the second and the third fines will be levied.

Cancellation of Tourism Investment or Tourism Establishment Certlficate

ARTICLE 34 - Tourism Investment or Tourism Establishment Certificate,

a)Determining an act which requires a fine fourth time within one year,

b)Operation against the establishment types which can be licensed or termination of the tourism activity of facilities or upon the demand of the certificate holder,

c)Occurrence of the circumstances referred to in paragraph (d) of the Article 33 and where keeping such an establishment open may be inconvenient for Turkish tourism and personal security,

d) When it is determined that the quality of the facilities has been downgraded significantly, whether from the point of view of the tourism operation or from that of public health standards,

e)When the facilities have ceased to possess the qualities required for certification, during the investment or operation phase,

Shall be cancelled by the Ministry in any of these cases.

Objections to and Litigation against Penalties

ARTICLE 35 -

a) Warnings issued in accordance with the present Law shall be final.

b) Objections to fines imposed by inspectors may be raised within seven days by petitioning the Ministry.
Upon receipt of such a petition, the Ministry shall make its final decision either to approve, to adjust or to cancel the penalty within a month at most.

c) Files for annulment of decisions of the Ministry concerning fines and for annulment of other penalties may be lodged with the administrative courts of the place where the certified establishment is located.

Other Penalties

ARTICLE 36 -

a) In the event of any violation of the provisions of article 6 hereof, a term of imprisonment of three to eighteen months or a heavy fine of fifty thousand to one hundred thousand Turkish Lira or both shall be imposed;

b) Those who violate paragraph 2 of article 29 hereof shall be liable to a heavy fine of fifty thousand to one hundred thousand

Turkish Lira.
The fine shall be doubled in the event that the violation is repeated.

SECTION SIX
Final Provisions

Regulations

ARTICLE 37 - Regulations govering the following shall be issued within one year from the publication of this Law:

A) Matters to be governed by regulations to take effect upon decrees of the Council of Ministers :

1) Matters concerning the formation of work groups to designate cultural and tourism preservation and development regions, tourism areas and tourism centres and the functions, powers and procedures of these groups and their relations with the Ministry;

2) The issue of tourism investment and tourism establishment certificates, the nature of the management, personnel and operation of the establishments concerned and the physical conditions with which these are to comply;

3) Matters pertaining to the inspection of certified tourism investments and establishments in respect of the qualities on the basis of which the certificate has been issued, of their price lists, cleanliness, orderliness, services, management and administration and of other points including the questions of human
and environmental health and security of persons and property, and pertaining to the qualifications, appointment and powers of inspectors;

4) Matters pertaining to the operation of marinas and yacht charters and to the implementation of articles 28 and 29 hereof.

B) Matters to be governed by regulations to be prepared by the Ministry in conjunction with various other ministries as follows:

1) With the Ministry of Finance:

a) Matters concerning the collection and deposition with the Tourism Development Fund of fines imposed thereunder;

b) Matters relating to the utilisation and auditing of the Tourism Development Fund.

2) With the Ministry of Interior: Matters pertaining to the employment of foreign nationals in certified tourism establishments as exempt from the provisions of Law no. 2007 concerning the Trades and Services to be Performed in Turkey by Turkish Citizens.

C) Matters to be governed by regulations to be prepared by the Ministry:

1) The respective rights and obligations of those holding tourism certificates in their relations with the Ministry, each other and their customers and the conditions with which they shall be obliged to comply in such relations;

2) Principles and procedures pertaining to the penalties and fines imposed thereunder, the composition of boards at the Ministry to be in charge of taking decisions as to penalties and matters conceming the implementation of penal clauses;

3) Other matters that may be required for the enforcement of this Law.

Provisions Rescinded

ARTICLE 38 -

Law no 6086 concerning the Encouragement of the Tourism Industry (..........) is hereby rescinded. (The provision that was contained in the space marked ( ) in Article 38 above and that concerned Article 12 of the Customs Law 1615 was abolished by Article 54 of Law 2817 of 18 April 1983.)

Interim Article 1 - Tourism establishment construction certificates and tourism establishment operation certificates issued under Law no. 6086 concerning the Encouragement of the Tourism Industry must be replaced within three years of the date of entry into effect of the regulation referred to in paragraph (A-2) of Article 37 hereof. Formalities conceming such replacement shall be exempt from any and all stamp duties, taxes and fees.

Interim Article 2 - (Repealed by Law No. 2817, dated 18.4.1983) Article 4.

Interim Article 3 - The supreme Board of Co-ordination of Tourism shall be authorised to declare tourism areas and tourism centres for the purpose hereof until cultural and tourism preservation and development regions, tourism areas and tourism centres are announced in accordance with the principles set forth in articie 4 and paragraph (A) (1) of Article 37 of this Law.

Interim Article 4 - Yachts may have and use wireless equipment on board in accordance with principles to be decided upon jointiy by the Turkish General Staff, the Ministry of Transport and Communications and the Ministry, until such time as new arrangements are made in this connection in Law of Radio Communications, No. 3222.

Interim Article 5 - Regulations issued under the Law 6086 concerning the Encouragement of the Tourism Industry and provisions of articles 11, 12 and 13 of the same Law not contradicting this Law shall continue to be operative until the regulations to be issued thereunder take effect.

Interim Article 6 - The carrying out of decisions to demolish structures falling under articie 6 hereof shall be postponed until the end of the year 1982 in connection with facilities owned by establishments holding tourism certificates and operating in areas owned or controlled by the State.

Interim Article 7 – The tourism regions, tourism areas and tourism centres that have been determined and declared before the issuing date of this Law are in force and these region, area and centres are subject to the principles which will be implemented for "cultural and tourism preservation and development regions" and "tourism centres ".

Interim Article 8 - The works and transactions related to the plans directed to the Ministry of Public Works and Settlement for approval before the publication of this Law, are completed and approved by the Ministry of Public Works and Settlement.

Supplementary Article l - (Amended by Law no 3487, dated 27.10.1989) Without prejudice to rights previously granted and currently being exercised and rights entered into the land registry, hot and cold mineral springs resorted to for cures shall be transferred to tourism investors pursuant to the provisions hereof.

The powers of the authorities referred to in Law 927 dated 10 June 1926 and in article 2 of Law no 4268 dated 17.6.1942 as amended by Law no 6977 dated 24 May 1957 shall belong to the Ministry, provided that such powers shall be restricted solely to the tourism areas and tourism centres indicated. However, dividend and duty entitlements of provincial administrations shall be reserved.

Those beneficiaries who are not making full use of resources allocated to them in tourism areas and tourism centres may continue to make use of such resources if they submit to the Ministry a statement confirming their commitment to make full use of such resources, accompanied by their plans and projects in this regard, within one year of the date of entry into effect of a regulation to be issued pursuant to this Law and if such plans are approved by the Ministry. Otherwise, excess amounts of the spring used shall be made available to those willing to operate such spring waters.

A regulation to be issued by the Ministry in conjunction with the Ministry of Health and Social Welfare and the Ministry of Energy and Natural Resources shall lay down principles for the determination of excess amounts of spring waters used by real and legal persons, that hold a right to operate water springs resorted to for cures, the manner and conditions of operation of excess spring waters not used, the exploitation of newly discovered spring waters, and the regulation of relations with other beneficiaries in this connection.

Supplementary Article 2 - (Supplemented by Law 3754 of 30 May 1991) Caravans and motorcaravans owned by foreigners who have entered Turkey may remain in Turkey for up to 2 years for maintenance, repair and wintering purposes, and their owners may leave Turkey by other means.

Procedures and principles concerning the utilisation and stay of motorcaravans and caravans ovned by foreigners that are permitted to spend the winter in places and warehouses designated for this purpose shall be set out in a regulation by the Ministry of Tourism after obtaining the opinion of the Ministry of Finance.

Supplementary Article 3 - (Supplemented by Law 3754 of 30 May 1991) While making arrangements and taking measures to regulate and develop the tourism sector and to give the sector a dynamic structure and mode of operation, the Ministry shall take all measures to assist in the formation of professional bodies with the status of public organisations related to the sector.

Supplementary Article 4- Regarding the places outside the cultural and tourism preservation and development regions and tourism centres; at places that are considered as the State Forest according to the Forest Law No: 6831 and at places that have been designated and declared for land allocation on tourism investments according to the Law on National Parks No: 2873 and regarding the decree law No: 383 on Establishment of the Institution of Private Environment Protection, land allocation for tourism investment will be done by the Ministry after obtaining the approval of Ministry of Environment and Forestry.

The pastures that are situated within the cultural and tourism preservation and development regions are subject to and bound by the aim of use implemented through the decisions related to land use plans. The qualifications of these areas are modified and registered in the name of the Treasury.

Entry into Effect

ARTICLE 39 - This Law shall enter into effect on the date of its publication.

Execution

ARTICLE 40 - This Law shall be executed by the Council of Ministers.


#98
NOTIFICATION ON THE QUALIFICATIONS OF THE RECORDING ESTABLISHMENTS TO COPY VIDEOS AND CASSETTES AND THE RULES TO BE FOLLOWED IN THE RECORDING ESTABLISHMENTS

88/1

Publication in Official Gazette: 19.11.1988/19994

The qualifications of recording establishments and the rules to be obeyed by them are shown below in accordance with the second paragraph of amended article 11 of Regulation on the Signing of Intellectual Arts and Works of Art that have come into force in accordance with the article 41 and article 44 of Law of Intellectual Arts and Works of Art No. 5846 and provisions of Law of Cinema, Video and Music Works of Art No. 3257.

I- QUALIFICATIONS OF THE VIDEO RECORDING ESTABLISHMENTS

The recording establishments that shall make video copies are obliged to have the minimum technical qualifications registered below.

1.  100 pieces of video tape recorders (Beta-VHS etc.)

2.  2 pieces of U-Matic or 1 inch recording equipment

3.  1 piece of picture corrector (Time Base Corrector)

4.  1 piece of Waveform monitor controlling picture signals

5.  2 pieces of picture and sound entry-exit controlling monitor

6.  Remote control system of recording equipment 

7.  10 pieces of video tape controlling the recording quality and related choosing system

8.  1 piece of monitor controlling the recording quality

The matter whether these establishments have the qualifications stated above shall be determined with the report prepared by at least a 3-person commission including a technician that shall be formed by the Cinema Works of Art Owners Vocation Union of Turkey. In case the report is negative, the owner of the establishment is entitled to object to the Chamber of Industry or to the Industry Department of the Chamber of Commerce of his own province within 7 days if he wishes. The factories producing empty video tapes shall present their manufacturer proofs, judicial report of Chamber of Industry, a copy of the report from the Chamber of Industry proving that they do recording and defining their capacities, to the Ministry of Culture and Tourism.

One copy of the invoices of materials and equipment that are in the recording establishments or sale transfer bonds certified by the notary shall be annexed to the documents above.

In addition, a presentation of one copy of land register if the place of the recording establishment is possessed by the owner of the establishment, if not one copy of the rental contract certified by the notary is obligatory.

The owners of recording establishments applied to the Ministry of Culture and Tourism with the above-stated documents shall be given the "Certificate of Video Copying Efficiency".

II- QUALIFICATIONS OF THE AUDIO (CASSETTE) RECORDING ESTABLISHMENTS

The recording establishments that shall copy audio (cassette) are obliged to have the minimum technical qualifications as registered below:

1. 6 equipment having the capacity of recording 80 cassettes in one tour or an equipment able to reach this capacity for normal tour speed (real time) recording.

2. Equipment with high-speed able to reach the capacity stated in article 1.

3. 1 tape recorder with the capacity to play the reel records.

4. 1 electronic mixer with the capacity to control the sound.

5. 1 record quality controlling equipment.

The report of Chamber of Commerce stating that these establishments have the conditions stated above and stating its capacity, the copy of invoices of the materials and equipment of the recording establishment or a copy of the notary certified transfer bonds; a copy of the land register of the establishment or a copy of the notary certified sample of rental contract shall be presented to the Ministry of Culture and Tourism.

The owners of the recording establishments applying to the Ministry of Culture and Tourism shall be given the "Certificate of Audio (cassette) Copying Efficiency".

III- RULES TO BE OBEYED BY THE RECORDING ESTABLISHMENTS THAT HAVE CERTIFICATE OF COPYING EFFICIENCY

1. The representatives of the recording establishments shall take the banderoles, presenting the notary certified copy of the original administration certificate of the work to be copied; the producer's notary certified power of attorney of banderole taking and his declaration of the number of copying. In case the producer has transferred his work, notary certified, to another producer, the transferred real and legal person shall carry out the procedures stated above.

2. The work shall be copied within the framework of the principles of the administration certificate.

3. Within 10 days pursuant to the end of the copying, the signing shown on the sticker of the work and banderole serial numbers shall exist in the copy of the invoice to be sent to the Ministry (the Presidency of the Department of Intellectual Arts and Works of Art) by the representatives of the recording establishments. The owners of the recording establishments who had been transferred their own productions and the rights of copying and collective distribution, notary certified; shall send their written statement including the above stated information instead of invoice to be presented to the Ministry within 10 days.

4. In case of any changes in owners, names or residences, additional equipment purchases of recording establishments, this change shall be informed to the Ministry (the Presidency of the Department of Intellectual Arts and Works of Art) within 10 days.

5. The signature circular of the owners and representatives of recording establishment shall be given to the Ministry.

6. The Ministry is entitled to control the recording establishments. The charged persons of the recording establishments shall present the necessary information and documents to the authorized person. The certificate of Copying Efficiency shall be nullified and banderoles shall not be given again in case of determining an elimination of the stated conditions of the qualifications of the recording establishment, using the banderoles inappropriately or contrary to their purpose, and misinforming the Ministry.

7. The existent recording establishments shall get their Certificate of Copying Efficiency within 45 days pursuant to the publication of this notification.

8. This notification shall come into force on the date of its publication.

THE ADDRESSES OF VOCATION UNIONS

SESAM:

Cinema Works of Art Owners Vocation Union of Turkey

İstiklal Cad. No: 122/4-A

Beyoğlu-İSTANBUL

Tel: 145 46 45 – 149 98 26

MESAM:

Musical Works of Art Owners Vocation Union of Turkey

Kuyulu bostan Sokak Kristal Palas Apt. No:13

Kat: 1  Daire: 8   Nişantaşı-İSTANBUL

Tel: 132 77 00 – 132 77 01




#99
REGULATION ON SIGNING OF THE INTELLECTUAL WORKS AND WORKS OF ART

The Regulation on Amendment of some of the Articles of Regulation on the Signing of the Intellectual Art and Works of Art

Publication in Official Gazette: 29.8.1988/19914

Article 1:

Sub-paragraph (i) of Article 3 of the Regulations on Signing of the Intellectual Art and Works of Art has been amended as stated below.

Banderole: is a sticker for films, videos, cassettes, records and etc. and which is stamped on the copies of intellectual works and artistry and which cause the stamped material to lose its characteristic if ripped and damaged. The banderoles whose types and qualifications shall be determined and printed by the Ministry of Culture and Tourism in order to be stamped on each copy of the works, shall be obtained by the representatives from the Ministry of Culture and Tourism.

Article 2:

Article 11 of Regulation has been amended with its title as stated below.

The use of the banderoles:

Article 11:

The banderoles bought in the number of copies, for the films, videos, cassettes, records and etc. shall be used in the work belonging to the producer. Producers shall be obliged to inform the Ministry of Culture and Tourism about the registered work's recording establishment in which videos and cassettes shall be copied. The qualifications of the Recording Establishment producing copies shall be requested by the Ministry of Culture and Tourism. Certificate of Copying Efficiency shall be given by the Ministry to the Recording Establishments which have these qualifications.

The banderoles of videos and cassettes shall be given to the authorized recording establishment by the producers or the ones who took over the copyrights with the document prepared by the notary.

The banderoles given to the recording establishments shall only be used for the works of art to be copied. The recording establishments shall be obliged to send the invoice copy, which were given to the producers, including the serial numbers of the banderoles to the Ministry of Culture and Tourism.

The recording establishments that use the banderoles in improper situations or not in accordance with their objective shall not be given the banderoles again and certificate of copying efficiency shall be nullified.

Provisional Article:

The qualifications of the recording establishments shall be determined after their applications and they shall be given the certificate of copying efficiency by the Ministry of Culture and Tourism in one month from the date on which this regulation had come into force.

Validity:

Article 3:

This regulation shall come into force on the date of its publication.

Execution:

Article 4:

The provisions of this regulation shall be executed by the Minister of Culture and Tourism.

#100
REGULATION ON ENTERPRISE LICENSE TO BE GIVEN TO THE FILM, VIDEO, RECORD AND CASSETTE ADMINISTRATORS

Resolution Number: 86/10899

Publication in Official Gazette: 4.9.1986/19211

Regulation on amendment of some of the articles and annexing a provisional article to this regulation.

Resolution Number: 87/11715

Publication in Official Gazette: 26.6.1987/19499

The name of the Regulation has been amended with Article 1.

Objective:

Article 1 has been amended.

Article 1:

The objective of this regulation is to determine who shall be licensed as the administrator, their qualifications, the principles that shall be implemented and other matters and exceptions related with this work, by municipalities and by the superior civil administrative chief outside the borders of municipalities.

Scope:

Article 2:

This regulation comprises the requested qualifications, the conditions that shall be followed and other methods and principles, for the real and legal persons to have an enterprise license demanding to copy films, videos, records, cassettes and similar works having an enterprise certificate for commercial purposes, to make collective sale or retail distribution, to sell, rent and display for more than one person.

Real and Legal Persons that shall be given Administrator License:

The first paragraph of Article 1 has been amended.

Article 3:

Administrator license shall be given to the real and legal persons, demanding to copy films, videos, records, cassettes and similar works for commercial purpose, to distribute and sell, to sell by retail, to rent, to display for more than one person by the municipalities, or in places outside the borders of municipalities by the superior administrative chief only if they carry the qualifications stated in article 4 and if they can execute the conditions. The administrator who has taken administrator license and doing collective copying and distribution shall be obliged to take his copying right from the producer by a document prepared by the notary public.

The subject of this activity is shown separately in the administration license.

Qualifications and conditions:

Article 4 has been amended.   

Article 4:

From the ones, who applied to the municipalities and to the superior administrative authorities in places outside the borders of municipalities, demanding to get administration license, necessary materials and equipment for the controlling of videos and cassettes shall be required in working places and sharing a proper stand shall be required in the working places that are not independent.

Display of the films and video works of art

Article 5:

The persons demanding to display films and video works of art in public, relaxation, recreation and entertainment places shall also be obliged to have a administrator license. The works without the special of "Usable in open-public places" on the producer's banderole shall not be displayed in open-public places.

Exceptions:

Article 6:

Public institutions, establishments and foundations shall not be obliged to get administrator license due to their selling, displaying and distribution activities of educational, instructive, country introducing, scientific and social films, videos, records and cassettes. However, they shall be obliged to get the administration license in case these activities are executed for commercial purposes in a working place.

The Turkish Radio and Television Company shall not be considered as administrator due to its displaying, selling, distributing activities of films, videos, advertisements, records, cassettes, magnetic bands and similar works, therefore administration license shall not be given.

Provisional Article:

The administrators, who were active before this regulation had come into force, shall be obliged to get administration license within 3 months from the Municipalities.

A provisional article has been annexed.

Provisional Article:

The administrators, who were active in the places out of the borders of municipalities before the regulation had come into force, shall be obliged to get the administration license from the superior civil administrative chief within 3 months.

Validity:

Article 7:

This regulation shall come into force on the date of its publication.

Execution:

Article 8:

The provisions of this regulation shall be executed by the Minister of Culture and Tourism.

#101
REGULATION ON CO-PRODUCTIONS BETWEEN CINEMA, VIDEO AND MUSIC WORKS OF ART PRODUCERS AND PRODUCERS WHO WANT TO PRODUCE A FILM AND THE FOREIGNERS

Resolution Number: 86/10900

Publication in Official Gazette; 4.9.1986/19211

Regulation on amendment of some of its articles

Resolution Number: 88/13246

Publication in Official Gazette: 12.10.1988/19957

FIRST PART

Objective scope

Purpose:

Article 1:

The objectives of this Regulation are;  to determine the persons who are entitled to produce and import film, video, record, audiocassette and similar works of art, the qualifications of them, rules to be obeyed, amateur works and to determine the principles of the co-productions that shall be made by foreigners who want to make films in Turkey with commercial purpose, real and legal persons from Turkish nationality who work on behalf of the foreigners and real and legal persons from Turkish nationality.

Scope:

The third paragraph of article 2 has been amended.

Article 2:

This regulation comprises;  the persons who are entitled to be a producer, their qualifications, rules to be obeyed, amateur works, principles that the foreigners who want to produce films or the persons from Turkish nationality who shall work on behalf of these persons shall be dependent on and principles related to the co-production.

However, the provisions of this regulation shall not be implemented on the film, video, record, audiocassette, magnetic band and similar works of art that shall be produced, imported or shall be realized by the way of co-production with the native and foreigner real and legal persons from the Company or by the way of ordering, by the third persons  to be used in the Turkish Radio and Television Company and/or the publications in accordance with the Company.

The provisions on the Principles, that the foreigners who want to make scientific researches, inspection and produce film in Turkey and the persons who make applications on behalf of these persons and the foreign press members shall be dependent on,  that have been put into force with the Resolution dated 4/4/1998 and numbered 88/12839 shall be legally guaranteed.

SECOND PART

Producer Real and Legal Persons, RULES to be obeyed, Amateur Works

Real and Legal Persons Entitled to Make Production:

Article 3 has been amended.

Article 3:

In case the real or legal persons producing or importing film, video, record, audiocassette, compact disc and similar works of art,  apply to the Ministry of Culture and Tourism enclosing the certificate indicating that they have the qualifications to make production taken from the Cinema Work of Art Owners Vocation Union of Turkey for the film, video and similar works of art, the one taken from Music Work of Art Owners Vocation Union of Turkey for the record, audiocassette, compact disc and similar works of art to the certificate they have taken from the chamber of commerce, indicating that they work in this field, they shall take producer code in accordance with the provisions of the Regulation On Producer Certificate and Signing of the Intellectual Work and Works of Art.

The producers who distribute, sell, rent, present to display the works of art they have produced or imported without enterprise certificate, without banderole or by copying them not in compliance with its original or the ones acting against the provisions of the Regulation On Signing of the Intellectual Work and Works of Art,  shall be warned by the Ministry once with a written declaration. The producer certificate of the real and legal persons who have been determined to continue these activities shall be nullified and another producer certificate shall not be given to them.

The control of the producer certificate shall be made by the Cinema Work of Art Owners Vocation Union of Turkey and shall be reported to the Ministry.

Rules to be obeyed by the Producers:

Article 4 has been amended.

Article 4:

The producer is obliged to declare;  the name of the work of art, the places he shall make the production, the matter whether he shall use native or foreign artists or technical members for the works of art he shall produce or import; the country where the work of art shall be taken from, the number of works of art and the names of them if known beforehand for the works of art subject to import, to the Ministry in a written statement.

Moreover, he is obliged to give

One video copy, two posters if any and other documents of the domestic or imported works of art for the films,

One video band copy and other documents if any for the videos,

One record and cassette for the recorders

To the Ministry of Culture and Tourism enclosed to the written declaration stated in Article 5 of the Regulation.

Producer Declaration:

The sub-paragraph (b) of Article 5 has been amended.

Article 5:

The producer shall declare; the name of the work of art that he has applied to the Ministry of Culture and Tourism to make its record and registration, that he is the producer or importer of it, the producer code, other technical information about it and that he undertakes the correctness of these, separately for every work of art in order to take enterprise certificate. He is obliged to enclose;

A copy of the contract, which has been translated into Turkish and whose correctness has been approved, made with the persons entitled to produce and import, distribute and display the work of art, for the foreign origin works of art,

For the domestic works of art, a written declaration indicating that he is the producer of the work of art and a notary public approved copy of the contract indicating that he has taken over the rights of copy, distribution and display from the producer and a notary public approved copy of the contract made with the performer soloist or the director of the group for the music works of art to this declaration.

In case more than one real and legal person apply to get enterprise certificate for the foreign works of art, the certificate taken from the producer of the work of art shall be taken as a base. The work of art shall be registered and recorded on behalf of the owner of this certificate.

The producer is entitled to transfer the copy and collective distribution of the work of art he has registered and recorded to the collective distributor real and legal persons who have enterprise license, with a certificate arranged by the notary public. The person doing collective distribution shall take banderole by giving the transfer document to the Ministry of Culture and Tourism.

Amateur Works:

The first paragraph of Article 6 has been amended.

Article 6:

The real or legal persons producing cinema, video and music works of art that have no commercial purpose, are entitled to register and record their works of art in case they request.

Registration and record charge shall not be taken from the works of art that are being made by public institutions and establishments.

In case the amateurs use the works of art they produce with commercial purpose, they shall be obliged to obey the principles projected for the producers in this regulation.

THIRD PART

Application and Permission Obligation of the Foreigners and Persons who want to produce commercial purposed film in Turkey on behalf of the foreigners, Rules to be obeyed

Permission:

Article 7:

The foreign real and legal persons who want to produce films with commercial purpose in Turkey and real and legal persons from Turkish nationality who make activities on behalf of these persons are obliged to get permission from the Ministry of Culture and Tourism.

Application Authority:

The second paragraph of Article 8 has been amended.

Article 8:

For producing film with commercial purpose in Turkey, application shall be made to the representatives of Republic of Turkey abroad and to the Ministry of Culture and Tourism for domestic production with the application form in the (ANNEX).

A copy, which is written in the original language, of the scenario belonging to the work of art shall be enclosed to the application form.

Article 9 has been amended.

Article 9:

When co-production is requested with the producers who want to produce films in Turkey and local producers who work on behalf of these producers; "Permission Certificate" shall be arranged,  when the existing local and foreign producers present the application form that they have filled without deficiency and that they have signed to the Ministry of Culture and Tourism. One sample of the permission certificate shall be sent to the related institutions and establishments for information.

FOURTH PART

Application for Co-production, Player and Member:

Application for Co-production:

Article 10:

In the film productions with commercial purpose that the real and legal persons from Turkish nationality shall make with the foreigners in Turkey, the local producer is obliged to annex his own name, working place address, certificate indicating that he is a member of Cinema Works of Art Owners Vocation Union of Turkey, the nationality of the foreign real and legal persons he shall make co-production with, their names, working place address in his country, the original of the work of art if it is written in foreign language and its Turkish copy to his application and give it to the Ministry of Culture and Tourism to get permission.

Player and Technical Member:

Article 11:

In the co-production films that the real and legal persons from Turkish nationality shall make with the foreigners in Turkey with commercial purpose, players and technical members can be used in the number to be determined by the parties.

FIFTH PART

Common Provisions:

Residence Permit:

Article 12:

In case permission is given for production of film, the residence of the foreign members, who shall be charged, shall be provided by the Ministry of Culture and Tourism by sending necessary information and documents belonging to them to the Ministry of Interior.

Entry and Exit of the Raw Films and Other Materials to Turkey:

Article 13:

It is obligatory that there must be the list of material stated in the annexed form and appropriateness in order to realize the entry of the raw film and material, which shall be temporarily brought to our country with the aim of producing film with commercial purpose.

In case the laboratory process of the film after shot shall be done abroad, there must be the written permission of the Ministry of Culture and Tourism for the exit of the parts belonging to the film to be sent.

Host:

Article 14:

The Ministry of Culture and Tourism is entitled to instruct a host, when necessary, to be helpful during the shot of the film.

Shot in Public Places:

Article 15:

The Ministry of Culture and Tourism makes aid in the permission process, in case use of the public places in film shots have been found appropriate.

Obligation to give Information:

Article 16 has been amended.

Article 16:

The producers are obliged to declare that they have given written information to the most superior local administrative authority about the starting and finishing date and to the Ministry of Culture and Tourism about the production.

The foreign producers and the producers in the co-production are obliged to return the permission certificate by declaring to the Ministry of Culture and Tourism that the shot of film has been completed, their work in Turkey has finished and the date they shall leave.

Nullification of the Shot Permission:

Article 17:

In cases where provisions of the Regulation are violated during the film shots, works shall be suspended by the Ministry of Culture and Tourism and the shot permission shall be nullified.

Provisional Article:

The persons who have taken producer certificate before this regulation had been put into force are obliged to change their producer certificates in 6 months after the Regulation has been put into force by applying to the Ministry. The producers who shall change their producer certificates are obliged to fulfil the matters projected in the 2nd article of this regulation.

Validity:

Article 18:

This Regulation shall come into force on its publication date.

Execution:

Article 19:

The Minister of Culture and Tourism executes the provisions of the Regulation.

(Shall be filled by the foreigners who want to shoot film in Turkey.)

Name, Surname:

Birth Place and Date:

Father Name:

Profession:

Nationality:

Passport Number:

Working Place Address and Telephone Number in his Country:

Address of the Place he shall stay in Turkey:

If he has been in Turkey before, the date of it and the reason for it:

Persons and Establishments he shall declare as a Reference:

The subject, duration of the Film and Places shot shall be done:

Number of Personnel he shall bring to Turkey for the studies, Kind and Quantity of the Equipment, Material and Motor Vehicles:

I undertake that I shall send an original video copy of the film I shot to the Ministry of Culture and Tourism in maximum one month.

Name, Surname

Signature

#102
REGULATION ON CINEMA AND MUSIC ART SUBVENTION FUND

Resolution Number: 86/10898

Publication in Official Gazette: 4.9.1986/19211

Regulation on amending some of its articles and annexing an article and a paragraph to this regulation

Resolution Number: 87/11737

Publication in Official Gazette: 26.5.1987/19471

FIRST PART

Objective-Scope, Organization of the Fund:

Objective and Scope:

Article 1:

The objective of this regulation is to show the principles and procedure about the use of the "Cinema and Music Art Subvention Fund"; which is established under the Ministry of Culture and Tourism with the aim of contributing the improvement of the cinema industry and music art, supporting the cinema and music workers and providing the introduction of the country,  and about the collection of the revenue, expenditure to be made and giving credit.

Definitions:

Article 2:

The explanations of the phrases used in this regulation are as follows:

Ministry: Ministry of Culture and Tourism

Minister: Minister of Culture and Tourism

Fund: Cinema and Music Art Subvention Fund

Commission: Evaluation Commission

Organization of the Fund, Its Resources and Exception:

Article 3:

The revenues, received from the resources stated in the 10th article of law numbered 3257, shall be deposited to the "Cinema and Music Art Subvention Fund" account that shall be opened in the account of a State Bank determined by the Ministry, by related real or legal persons.

However, the board and the third persons shall not do a payment to the fund for the film, video, recorders, magnetic bands and similar works of art that shall be produced, imported or realized by co-production with native or foreign real and legal persons or by ordering,  by the Turkish Radio and Television Company and/or the third persons in accordance with the Board publications.

SECOND PART

Use of the Fund:

The distribution rate of the fund revenues and the first paragraph of article 4 have been amended.

Article 4:

"10% of the fund revenues that shall be collected in a state bank determined by the Ministry shall be used for non-profit aids, 40% for credits that shall be loaned by an intermediary bank, 10% for aids to be made for needy cinema and music artists, 30% for activities related with introduction of Turkey's historic, cultural and natural wealth and 10%  of them for receiving goods and service in order to carry out the duties given by the Law."

The Minister is authorized to change these rates when necessary upon the proposal of Evaluation Commission.

Non-Profit Aids:

Article 5:

Non-profit aid shall be made from the fund to the real and legal persons who produce or import the works of art that will realize the educative, instructive, culture spreading and transmitting, introductory functions-that introduce Turkey's historic, cultural and natural wealth- of the cinema, video and music works of art.

Every year private specifications shall be prepared by the Ministry for these aids and they shall be declared to the public. The subject matter of the aid, number of works of art, quantity of the aid, principles of application, declaration date of the result and other matters shall be stated in the specification. The Ministry is entitled to make aids even if there is no application to the works of art appropriate to the specification.

Credits to be loaned from the Fund:

Sub paragraph (d) of Article 6 has been amended.

Article 6:

Credits with maximum 5 years-term can be given to the followings with the aim of inciting and supporting the producers who produce cinema, video and music works of art:

a)  Projects of scenario and producing work of art,

b)  Projects of studio, plateau and any kind of electronic and mechanic tools and materials to be used in these places of the real and legal persons who shall produce cinema, video and music works of art,

c)  Projects that shall introduce our historic, cultural and tourism values inside and outside the country by mediums like film, video, record and audio cassettes,

d)  Introduction projects on marketing the film, video and music works of art and projects of producing or importing raw film.

Necessary documents to receive a loan:

Article 7:

The persons, who want to realize the activities stated in article 6, are obliged to give the information and documents stated below to the Ministry with their projects.

a)  Goals and objectives of the project,

b)  Scenario of the work of art, if there is any,

c)  Detailed cost account of the project, quantity of the requested credit and period of realization,

d)  Lists of names of the places where the work of art shall be realized, artists who shall take part in the work of art and technical staff members and working program,

e)  A short biography of the producer.

The followings shall be requested in the credits that shall be loaned to the persons who want to establish studio, plateau and laboratory;

a) Objective of the project,

b) Feasibility of the project and realization period,

c) Specialties of the tools and material to be bought and their pro forma invoice and cost report,

d) Quantity of the credit requested,

e) A short biography of the person demanding credit.

Cost and detailed information and document shall be requested from the projects that shall introduce our historic, cultural and tourism values inside and outside the country by mediums such as film, video, record, audiocassettes.

Aids to be made for needy cinema and music artists:

Article 8:

The role players, cameramen, directors, visual directors, scenarists, persons who make dubbing, composers, lyricists, arrangers, executors and artists playing a musical instrument in a film are obliged to have the conditions stated below:

a)   To be from the Republic of Turkey citizenship or to have residence permit in Turkey,

b)   To do artistry as a profession or to be well-known in the society by the works of art they have released

c) Not to be charged with disgraceful offences, offences committed against the State.

The needy artists can apply to the Ministry personally with the documents listed above besides a petition, however the related boards and establishments or other artists are also entitled to make an application on behalf of these persons. The evaluation commission is entitled to take aid decisions on one's own account. The aids shall be realized by the commission after being evaluated in three-month period during the year. The commission can assemble at any time upon the invitation of the Chairman, without being restricted with three-month period. In cases of death and illness of the needy artists, the money aid determined by the commission shall be made from the fund without waiting for the period.

Introduction activities of Turkey's historic, cultural and natural wealth:

Article 9:

It is necessary for the expenditures belonging to every kind of publication, production, film errors and these kinds of activities that shall be made by public institutions and establishments or real and legal persons with the aim of introducing Turkish history and culture and Turkey's natural wealth inside and outside the country,  to be met from the fund, projects to be prepared on this issue shall be given to the Ministry with the detailed feasibility reports. The necessary amount of expenditures of these projects that have been found appropriate at the end of the commission's evaluation shall be met from the fund with the Minister's approval.

THIRD PART

Duties and Working Principles of the Evaluation Commission

Evaluation commission:

The first and third paragraphs of article 10 have been amended.

Article 10:

The Evaluation Commission forms from the unit chairman responsible from the fund and two Ministry representatives, one film producer, one record producer and one artist that the Minister shall elect for 2 years period under the chairmanship of one under-secretary or one deputy under-secretary instructed by the Minister. The commission shall assemble with at least two third quorums and the decisions shall be taken with the two third quorum of the present. In case of equality of the votes, the Chairman's party shall form the quorum.

"The Evaluation Commission shall assemble upon the invitation of the Chairman. The proposal of the Chairman can form sub commissions from commission and sub commission members with the approval of the Minister. The sub commissions shall be formed according to the characteristic of the subject matter and its resolutions shall be voted at the Evaluation commission. The secretarial work shall be carried out by the related Ministry unit. The duty of the related unit is to take the necessary measures for the commission studies to be carried out regularly and productively, prepare the agenda of the meetings, record the meeting minutes, provide the security of all information and documents of the meetings, carry out the transactions on  fund accounts, invite the related bank representative to the meeting while the credit matter is being negotiated at times when necessary."

The resolutions of the commission and sub commission come into force with the approval of the Minister.

Duties of the evaluation commission:

Sub-paragraph (a) of article 11 has been amended.

Article 11:

Duties of the evaluation commission are the followings:

a) To acknowledge the working program prepared by the related Ministry unit at the beginning of every year, to determine the rate of credit interests that shall be given by exceeding the bank credit limits and current interest rates,

b) To examine the applications belonging to the works of art that may be works of art which the non-profit aid shall be made and come to a resolution,

c) To examine the projects belonging to the credits to be given from the fund, determine the amount and period of the credit,

d) To examine the applications that shall be made for the aids to be made to the needy cinema and music artists, determine its amount,

To examine the given projects for the activities on introduction of Turkey's history, culture and its natural wealth

To determine the amount of the payment for the execution of the appropriate activities.

The resolutions shall be stated in the meeting minute and the minutes shall be signed by the members present at the meeting.

FOURTH PART

Loaning credit by an intermediary state bank:

Article 12:

The term, pay back period, interest, bank commission and interest subvention of the credits to be loaned by the intervention of a State Bank, principles to be implemented in case of pay back or not paying back and opening time deposit shall be determined by a protocol, which shall be arranged between the Ministry and the bank.

A paragraph has been annexed to Article 13 official authorized to pass accounts.

Article 13:

The official authorized to pass accounts of the fund is the Minister. The Minister is entitled to transfer the authority to pass accounts to the under-secretary or deputy under-secretary in situations he finds necessary. The expenditure shall be made within a program appropriate to the objectives of the regulation.

The purchase of every kind of tools, material and service and expenditure related with these shall be determined according to the requirement, shall be approved by the Minister and shall be paid from the allowance saved from in the Fund.

The Revenue Expenditure Plan of the Fund:

Article 14:

The revenue and expenditure plan of the fund shall be prepared by the secretariat of the fund during December every year and it shall be presented to the inspection of the evaluation commission. The revenue-expenditure plan that has been acknowledged by the evaluation commission shall come into force by the approval of the Minister. The accounting year of the fund starts on the first day of January, ends on the last day of December.

FIFTH PART

General Provisions

Inspection:

Article 15:

The documents below shall be sent to the Prime Ministry High Control Board until the end of March following the fiscal year:

Detailed revenue statement

Detailed payment statement

Bank statements

Balance sheet and profit-loss statement

Expenditure documents on credits

Income document.

Provisional Article:

The first account year of the fund starts on the date of the establishment of the fund and ends on the last day of that year's December month.

Article 16:

This regulation comes into force on its publication date.

Article 17:

The Minister of Culture and Tourism carries out the provisions of this regulation. 

#103
REGULATION ON INSPECTION OF CINEMA, VIDEO AND MUSIC WORKS OF ART

Resolution number 86/10901

Publication in official gazette: 4.9.1986/19211

Regulation on amendment of some of its articles

Resolution number: 87/11716

Publication in official gazette: 26.6.1987/19499

Regulation about amendment of some of its articles

Resolution number: 88/13241

Publication in official gazette: 12.10.1988/199957

FIRST PART

Objective-Scope-Phrases

Objective:

Article 1:

The objective of this regulation is to prevent the execution and display of the works of art consisting of cinema films, video bands, records and audio cassettes that may affect negatively the inseparable integrity of the state with its country, national sovereignty, republic, national security, public order, general ease, public interest, general ethics, general health and policy, that may hurt the national feelings or that are inappropriate to our national culture, customs and traditions.

Scope:

Article 2:

The provisions of this regulation comprises the organization of inspection committee and sub commissions, their duties, working principles and procedures; examining and inspection of the domestic produced or imported cinema films, video bands, records or audio cassettes and the scenarios depending on the request of the producer before they are presented to the public by their producers. 

However, they shall not be implemented in examination and inspection of every kind of cinema film, television film, video band, record, audio cassettes, magnetic bands and  similar ones, before they are presented to the public, that the third persons will produce, import or realize by the way of co-production with the native or foreign real or legal persons of the Company or by the way of ordering to be used at the Turkish Radio and Television Company and/or the publications in accordance with the Company.

Phrases:

Article 3:

The explanations of the phrases used in this regulation are as follows:

Ministry: Ministry of Culture and Tourism

Minister: Minister of Culture and Tourism

Committee: Inspection Committee

Commission: Sub-commission

Scenario: Text that is the base of the production of works of art of cinema and video

Poster: Advertisements at various shape and color produced for the introduction of the works of art of cinema, video and music.

Documentary Film: Productions that deal with a historic or old work of art, a situation from actual life or from the nature, any event experienced in the past or taken from the actual life in its natural environment or in settings formed later very closely to its original or productions that gain historic qualification as time passes.

Educative-Instructive Productions: Works of art that deal with the information, concepts, lesson subjects in a way that will be helpful for the education-instruction inside or outside the school.

Scientific works of art: Works of art that deal with scientific matters or discoveries.

Technical productions: Works of art that are prepared to give information on matters about production procedures, instrument machines and equipment, working and operation of them.

Contemporary works of art: Works of art produced with the aim of giving the events or real situations as news.

Commercial works of art: Works of art that do the introduction of the persons, establishments, objects or services.

Copy: Samples that are copied from the master bands, originals of the works of art.

Declaration: Standard form that has the qualifications of its producer, the work and information on and that is issued and given by the Ministry.

SECOND PART

Organization of inspection board and Sub-Commissions

Their Duties, Working Procedures and Qualifications of the Members:

Organization of the Sub-Commission:

Second and third paragraphs of Article 4 have been amended.

Article 4:

Sub-commissions composed of three persons to make the pre-inspection of the works of art can be formed by the Ministry.

"Commission forms from the representatives of Ministry and Related Vocation Union and Ankara and Istanbul Journalists Association that is beneficiary to the public. The commission chairman is elected by the members.

The Ministry can form more than one commissions if needed. These commissions can be formed in Istanbul and in other provinces when needed."

The meeting places of the commissions shall be determined by the Ministry.

Chairmen and members who have duty in the commissions cannot be appointed to the inspection boards.

The secretarial services shall be carried on by the related units of the Ministry.

Duties of the commission:

(c), (d) and (e) sub paragraphs have been annexed to the 5th article.

Article 5:

The duty of the commission is;  to prepare reasoned report by inspecting the copy of the work of art at appropriate size and form for the register and record transactions that shall be made by taking the declaration of the producer of the film, video and music works of art as a base in line with the objective of this regulation;

a) Using the statement "positive, not necessary to be inspected" for the works of art they do not find necessary to inspect.

b) Using the statement "necessary to be inspected by the Inspection Board" for the works of art they find obligatory and necessary to be inspected

c) By inspecting the scenarios of the producers 

d) By giving the certificate "It has been declared that the work of art is in compliance with the Inspection Principles. The inspection is not necessary under the responsibility of the owner of the declaration."

e) By inspecting the music works of art that have inspection certificate dependent on declaration in case there is complaints.

Organization of the inspection board:

The second and fifth paragraphs of Article 6 have been amended.

Article 6:

The board forms from;  the representatives from the Ministry of Education and Youth and Sports, General Secretariat of National Security Council, Ministry of Interior, Cinema Works of Arts Owners Vocation Union of Turkey, Music Works of Arts Owners Vocation Union of Turkey and one artist member chosen by the Minister under the chairmanship of the representative of the Ministry sent by the Minister. "Board shall be assembled in Istanbul and in other provinces in case it is needed. The number of the boards shall be determined by the Ministry according to the volume of the work."

The Ministries instruct their representatives and substitutes themselves.

Chairmen and members instructed in a board cannot be instructed in other boards and sub commissions.

"The boards shall assembly at places determined by the Ministry."

The amount of the travel expenditures, travel expenses, money for attendance to a meeting of the non-officials of the commission and board shall be determined by the Ministry approval every year.

These expenditures shall be met from the cinema and music art subvention fund.

Duties of the inspection board:

(B) sub-paragraph of Article 7 has been abolished and it has been amended as (C) and (B) sub paragraphs.

Article 7:

Duties of the inspection board are as follows:

A)   To prepare a report by inspecting the works of art within the framework of the principles provisioned in the 9th article.

a)  To prepare a report with the statement "positive as a result of the inspection" for the positive film, video and music works of art.

b)  To prepare a report with the statement "the distribution and display are inappropriate" for the negative film, video and music works of art and send it to the related unit to be considered.

c)   To prepare a detailed and reasoned report for the works of art that have been corrected and that were decided to be re-inspected.

B)   To inspect any work of art on its own account or as a result of the Ministry's request.

Working Procedure of the Sub-commission and Inspection Boards:

The third paragraph of Article 8 has been amended.

Article 8:

The duty distribution to the commission and boards shall be made according to the order of application.

No one is entitled to be present in the studies of the commissions and boards except for the Chairman, members and officials. The producer of the work of art can participate as an observer. The commissions assemble with all of their members, the boards assemble with the two third majority of the full number and take decisions with the two third majority.

As a result of the boards' offer, representatives can be requested from ministries or establishments that have no member at the boards by the ministry to receive the opinions about the inspections. These representatives do not have the right of vote.

In cases when the payments of the translators, who shall be charged (simultaneous translation) at the commissions and boards when needed, are not paid by the Ministry, Cinema and Music Art Subvention Fund, they shall be paid by the producer of the work of the art.

THIRD PART

Common Provisions On Inspection

Cinema, Video and Music Works of Art that cannot be permitted for Display and Execution:

Article 9:

The display and execution of the film, video and music works of art shall not be permitted, which contain elements of offense or incite to offense from the aspect of the indivisible integrity of the state with its country and nation, national sovereignty, republic, national security, public order, general ease, public interest, general ethics, general health and which are inappropriate to the foreign policy, to our national culture, customs and traditions.

Removing Process:

Article 10:

The removals to be made from the cinema and video works of art containing one or more of the matters stated in the 9th article shall be made by the commissions and boards in case the producer approves. The removal from the imported cinema film and video works of art shall be returned to their owner while going abroad.

Objection to the Resolutions of the Inspection Board:

Article 11:

The board's resolution, stating that the presentation of the film, video and music work of art to the public is in no way appropriate, can not be objected. However, administrative justice can be applied for.

Cinema, Video and Music Works of Art Harmful to the Children

Article 12:

The display and execution of the film, video and music works of art, which are determined probable to affect the mental and physical health, the growing up of the children in a negative way, shall not be permitted to children under the age of 16.

It is obligatory to state this matter in the posters, photographs and advertisements introducing the film, video and music work of art.

Works of Art with Educative Purpose:

Article 13:

The quality of the film, video and music works of art brought to the commissions and boards that have educative purpose shall be stated in the resolutions and shall be registered to the establishment certificate.

FOURTH PART

Various Provisions

Application of the Producers:

Article 14 has been amended.

Article 14:

It is obligatory for the producers to enclose a short summary of the work of art,  a translation of the foreign music work of art if there is any or a signed document stating that he takes all the responsibility of the lyrics to the declaration to be given to the Ministry for the cinema, video and music works of art to be inspected by the sub commissions.

Article 15:

The producers who want the scenarios to be inspected shall apply to the Ministry with four copies of the scenario and a short summary of the scenario enclosed to their petition.

The name, mailing address of the producer and the name of the scenarist shall be included in the petition.

Art Activities:

Article 16 has been amended.

Article 16:

The foreign film and video works of art brought from the foreign countries to be displayed to the public in the expositions, film festivals and public rejoices that shall be organized in Turkey or to participate in the competitions shall not be inspected. However, it is obligatory for the related organization committees on these activities to get appropriate and positive approval from the Cinema Works of Art Owners Vocation Union of Turkey established according to Article 42 article of law numbered 5846. Domestic film and video works of art with enterprise certificate can participate in these activities in the same way.

Validity:

Article 17:

This regulation comes into force on its publication date.

Execution:

Article 18:

The Minister of Culture and Tourism executes the provisions of this regulation.

#104
Notification on the necessary procedures and principles that shall be implemented by Broadcasting Establishments before broadcasting in Television Programs

Official Gazette:

September, 16,1997 – Issue: 23112

Related with the works which haven't been taken under the authority of the Law of Cinema, Video and Music Works of Art No. 3527 and the same works that have been taken under the authority of Law of Intellectual Works and for the owners of the rights, of the domestic works that are presented and foreign works that are presented, by importing them, on the Official and Private Television channels, to be protected and for the methods to be made clear, the realization of the applications stated below, shall be deemed as necessary.

For this reason, in accordance with the methods related with the works that are protected by articles 13,24,25,41,43,44,80 and 84 of Law of Intellectual Works and Works of Art No. 5846; the Television companies (Satellite, Cable Broadcast etc.) shall be obliged to have the "Certificate of Television Performance" for determining the ownership of the rights before broadcasting.

The news and advertisements prepared by the television companies, the productions prepared by public institutions and foundations, aiming to educate and inform the public and provided that it is related with announcing the activities in certain matters, the sports contests lively broadcast by the Television Spots of Pious Foundations or Associations and the cabled broadcasts of televisions whose centers are outside the country; shall not be considered within this context.

As per article 5 of the Law No. 3527, every work being a subject to production and importation shall be controlled, recorded and registered by the Ministry before its collective distribution and presentation and bands of the Ministry shall be stamped on each copy of the work that is registered.

Since the authority of controlling the broadcasts in content is granted to the Supreme Turkish Radio and Television Company, without need of controlling the works to be presented on televisions and taking their declarations into consideration, the Establishments of Televisions as the importers shall take the Certificate of Television Performance, for each of the works, indicating the parts of the serially broadcast programs whose rights have been acquired, by preparing a written undertaking on copyrights, to be paid to the owners of the rights and related vocation unions of the works to be used in the live broadcast music programs. While taking this document, for each of the works, the document cost determined by the Ministry shall be on the account of the General Directorate of Copyrights and Cinema of the Ministry of Culture and Certificate of Television Performance shall be prepared, as in annex, and it shall be affirmed by the Ministry of Culture. The procedures related with the certificate of performance of the mentioned works shall be made, by the General Directorate of Copyrights and Cinema in Ankara, by the Directorate of Copyrights and Cinema in Istanbul.

The Establishment shall not be obliged to have the certificate of copying related with the works belonging to them and whose Enterprise Certificates have been taken before. However, this certificate shall be taken by the establishments in case the performance certificates have been transferred to them. The establishments shall be entitled to process the works in the country by presenting the certificate of performance, taken for the works imported from abroad, to directorates of customs.

The broadcasting establishments shall present the copies of their certificates of performance with the copies of their registers of antenna exit in accordance with the Law of Supreme Radio and Television Company No. 3984.

They shall also be obliged to present; the copies of the certificate of foreign works whose all rights have been transferred to the third person or to the establishments and the contract proving their rights of television performance or the invoice proving all the possessions of the company related with the works and shall also present the documents stated below.

The owner of the rights of performance or the person they authorized and the establishments shall apply for having the Certificate of Television Performance.

The criminal provisions of the Law No. 5846 shall be applied for the establishments performing without the certificate.

This notification shall come into force on the 30th day of its publication.

REQUESTED DOCUMENTS:

1-   In order to get TV Display Certificate for domestic Works;

a)  Petition

b)  Display certificate (2 samples)

c)  Contract and/or invoice (in case the TV establishment is not the producer itself)

d)  Sample of Producer Certificate

e)  Work Enterprise Certificate (if arranged before)

2-   In order to get TV Display Certificate for Foreign Works;

a)  Petition

b)  Display certificate (3 samples)

c)  Contract (the original and its translation into Turkish)

d)  Sample of producer certificate

e)  Declaration

f) Work Enterprise Certificate (if arranged before)

Signature circular or power of attorney in every requests for Display Certificate.

#105
LAW OF CINEMA VIDEO AND MUSIC WORKS OF ART

Number of Law: 3257

Date of Approval: 23/1/1986

Publication in Official Gazette: 7.2.1986/19012

Law on amendment of some articles

Number of Law: 3329

Date of Approval: 29.1.1987

Publication in Official Gazette: 4.2.1987/19362

Objective:

Article 1:

The objective of this law is to realize the educative, instructive, culture spreading and transmitting, introductory functions of cinema, video and music works of art which are one of the most important mediums of mass communication due to their close relation with culture and their prevalence; to provide their improvement from the aspect of production, inspection and display, programming matters and technology usage; to give support to the people working in the field of Turkish Cinema and music art; to contribute order and dimension to cinema and music life from the aspect of national solidarity, integrity and our continuity.

Scope:

Article 2:

This law comprises the incite, creation of the work of art, inspection, display, execution of the products of Turkish Cinema and Turkish music art, which are branches of industry and art, and the principles and procedure of the protection of the copyright, display and execution right, which arise from these process.

Definitions:

Article 3:

The explanations of the phrases used in this law are as follows:

a) Work of art: Mobile or audio thought and art productions recorded on film, video, recorders or on their similar ones.

b) Inspection: The inspection of the works of art, which are identified in this matter, by the authorities in order to determine whether they contain elements of offense or incite to offense from the aspect of the indivisible integrity of the state with its country and nation, national sovereignty, republic, national security, public order, general ease, public interest, general ethics and general health and whether they are appropriate to our national culture, customs and traditions.

c)  Film: Every kind of mobile cinema works and their similar ones that determine works of art prepared as audio or visual or only visual with commercial purpose and the introductory, instructive or technical ones or the daily events.

d) Video: Every kind of mobile material on which vision with sound or only vision has been recorded with the electromagnetic parts on it.

e) Recorder: Every kind of record, cassette or their similar ones on which only sound has been recorded.

f) Banderole: The label which is stuck on the band, cassette and outer package of the works that makes the stuck material lose its special feature when removed and which the special sign of the person with the enterprise certificate and the serial number is on. (ministry banderole and the special sign of the owner of enterprise certificate is used on the recorder)

g) Producer: Real or legal persons producing or importing the works of art.

h)  Operator: Person doing the total and retail distribution, buying-selling and hiring of the works, or managing public cinemas or similar other saloons that provide more than one people to watch or listen, or broadcasting cable network.

i) Ministry: Ministry of Culture and Tourism.

Production and Import:

Article 4:

The real and legal persons that shall do the production and import and collective distribution of the works of art are obliged to inform the ministry beforehand.

Amateur works related with the question of who can do broadcasting, their qualifications, the rules to be obeyed and other matters related with this subject, the principles that should be followed by the foreign real or legal persons who want to make films about scientific researches in Turkey, or films with inspection and commercial purpose or by real or legal persons of Turkish nationality who make activities on behalf of these persons and the principles of the co-production, which shall be made by real and legal persons of Turkish nationality and foreigners,  shall be determined with the regulations prepared by the Ministry.

Register and Record:

The first paragraph of Article 5 has been amended.

Article 5:

The register and record of the works of art, which are the subject matter of production and import, shall be done by the Ministry and enterprise certificate shall be given before they are presented to collective distribution and display. This certificate can be bought by the person who produces the work of art or who has taken the copy, broadcast and display rights in domestic works of art; by the person who imports the work of art by taking the production, copy, distribution and display rights of the works of art from the person they belong to, by a contract, in works of art with foreign origin.

It is obligatory that the banderole of the ministry and the owner of the enterprise certificate shall be stuck on every copy of the work whose register and record has been done. The special sign of the owner of the enterprise certificate shall be used together with the Ministry banderole in records and audiocassettes. But, the Ministry shall not be responsible from this register and record based on the declaration of the producer and importer.

Inspection:

The third and the fourth paragraphs and the last paragraph of Article 6 have been amended.

Article 6:

For the register and record of the works of art, an application shall be made to the Ministry with a declaration of which a copy of any size or form is enclosed and this declaration shall be taken as a base in the transactions. The ministry determines the works of art that seem to be necessary or obligatory to be inspected, transfers them to the inspection committee and forms a sub commission of three persons that shall be determined with the regulations. The ministry can form more than one sub commissions or inspection committees with regard to the size of the work.

The register and record of works of art that do not seem necessary or obligatory to be inspected and the works of art that have been determined as positive as a result of the inspection shall be done and enterprise certificate shall be given. The necessary amendments shall be made by the producer in the works of art that are determined to be amended by the committee and enterprise certificate shall be given with the register and record. The ones that are absolutely inappropriate to be presented to distribution and display shall be returned after all administrative and judgment transactions have been completed.

The producers can request the Ministry to inspect the scenarios of the production if they wish. This inspection shall be made by the sub commissions. The inspection results of the works of art and the inspection results of the scenarios shall be declared to the related person in maximum 15 days. The inspection result shall be registered on the enterprise certificate of the works of art. If inspection is not necessary and obligatory, this matter shall also be registered on the enterprise certificate.

The inspection committee forms from the representatives of the Ministry of National Education Youth and Sports, the General Secretariat of the National Security Council and the Ministry of Interior under the chairmanship of the representative of the Culture and Tourism Ministry. But, it is obligatory that one representative from the vocation union of Turkish cinema works of art and one from the vocation union of Turkish music works of art and one artist determined by the Ministry shall take position in the inspection committee. The producer of the work of art that is inspected can participate in the inspection committee as an observer if he wishes. The number of sub commissions and inspection committees, the provinces they shall be organized in, the place they shall assembly at and the working principles and procedures, the financial rights of the non-officials and other matters shall be stated in the regulation that shall come into force with the resolution of the council of ministers.

Distribution and display:

The first paragraph of Article 7 has been amended.

Article 7:

The persons who make the collective and retail distribution, who sell, rent and present to display the works of art containing enterprise certificate for more than one person with commercial purpose are obliged to get enterprise license. The enterprise licenses are given by the municipalities and by the superior local administration chief at places outside the municipality border.

The persons to whom the enterprise license shall be given, the characteristics, rules to be obeyed and other matters related with this subject and exceptions shall be stated in the regulation prepared by the Ministry.

Copyright:

Article 6 has been amended.

Article 8:

The copy, distribution and display rights of the works of art belong to the owner of the enterprise certificate. The right of copying and responsibility of these works of art belongs to the person who registers and records them. Every kind of disposal on the works of art is forbidden unless there is the permission of the owner of the rights. The copy, distribution and display rights can be subject to any kind of perception as buying, selling and leasing.

A work of art that has not been registered and recorded cannot be subject to right of display, copy and distribution. The transfer of the copyright after the register and record does not give the right to make any amendments on the work of art.

When any conflict arises in the matters of copying, distributing and displaying, the work's copy at the ministry shall be taken as a base. The provisions of the law numbered 5846 on works of thought and art shall be applied on the matters about copyright that have not been mentioned in this law.

Authority of the enterprise:

Article 9:

The ministry and the civil administration chiefs can inspect enterprise certificate and banderoles of the works of art during their distribution and display and inspect the work of art at any time in order to determine whether there have been any amendments on it. The works of art without enterprise certificate or banderole or on which any amendment has been made shall be collected and transferred to the C Attorney generalships with offense declaration.

The civil administration chiefs can prohibit the distribution and display of the works of art which are probable of causing a social event due to the characteristics of the region, in the limits of their authorities and duties, on condition that the reason shall be stated.  In case the work of art is found inappropriate to the inseparable integrity of the state with its country and nation, to our national sovereignty, Republic, National Security, Public Order, General Ease, Public Interest, General ethics and general health, customs and traditions at the end of any inspection made by the ministry or the civil administration chiefs, the work of art shall be prohibited and legal proceeding shall start.

Local civil authorities and municipalities have the authority to inspect the banderoles and the enterprise certificates.

Fund:

The fourth paragraph of the 10th article has been amended, sub paragraph (d) has been annexed to its 6th paragraph numbered II and its last paragraph has been amended.

Article 10:

"Cinema and music art subvention fund" has been established to the order of the ministry with the aim of contributing to the development of cinema industry and music art, supporting the cinema and music workers and to provide the introduction of the country. In the fund establishments, implementation of the public accounting law numbered 1050, state tender law numbered 2886 and provisions of Audit Court law numbered 832 depend on the inspection of the Fund and Prime Ministry High Control Board.

I-  Fund Revenue;

*a) 10.000 liras that shall be taken from domestic works of art during the register and record, 50.000 liras of register and record charge that shall be taken from foreign works of art,

b) 1000 liras that shall be taken from every domestic film copies, 5000 liras that shall be taken from every foreign film copies,

**c) 200 liras for each banderole from the domestic video copy, 500 liras that shall be taken for each banderole from the foreign video copy,

**d) 50 liras that shall be taken from each record, 20 liras that shall be taken from each cassettes,

e) Donations and aid,

f) The interest yield and other incomes of the fund,

g) Money that shall be collected according to the provisional 3rd article.

The council of ministers is authorized to increase or decrease the charges and quantities in the a, b, c and d sub paragraphs of the paragraph above to five folds.

Register and record charge shall not be taken from the works of art produced with educational purpose.

Annex of resolution dated 9/9/1987 and numbered 87/12090

RESOLUTION

A-  The charge of 50.000 liras that should be taken from the foreign works of art during register and record according to the (a) sub paragraph has been decreased to 10.000 liras for foreign records and their similar ones.

B-  The banderole charge of 20 liras that should be taken for each cassette according to the (d) sub paragraph has been increased to 50 liras.

Annex of resolution dated 26/8/1988 and numbered 88/13242

RESOLUTION

A- The charge of 200 liras that should be taken from each banderole of domestic video copies and the charge of 500 liras that should be taken from each banderole of foreign video copies according to the (c) sub paragraph have been increased to 300 and 600 liras respectively.

B- The banderole charge of 20 liras that should be taken from each cassette according to the (d) paragraph and that has been determined as 50 liras with the council of ministers resolution dated 9/9/1987 and numbered 87/12090 has been increased to 100 liras.

II- Fund expenditures;

a)   Non-profit aids and credits that shall be given for maximum 5 years term by an intermediary state bank.

b)   Aids that shall be made for needy cinema and music artists.

c) Expenditures that shall be made for the introduction of Turkey's historical, cultural and natural wealth.

d)   The necessary expenditures for the duties to be realized given to the ministry by this law.

Principles and procedures regarding the use of the fund, collection of the revenue, expenditure that shall be made from the fund, giving credit, interest rate of the credits shall be stated in the regulation.

Penalty Provisions:

Article 11:

According to this law:

a) The persons who do not give the information to the Ministry that must be given shall be penalized with heavy fine from 1.000.000 to 2.000.000 liras according to the 1st paragraph of the 4th article.   

b) The persons who do not obey the obligation to get enterprise license stated in the 1st paragraph of the 7th article shall be penalized with heavy fine from 1.000.000 to 2.000.000 liras.

c) The persons who do not obey the prohibition in the 1st paragraph of the 8th article shall be penalized with heavy fine from 2.000.000 to 10.000.000 liras.

d) As stated in the 1st paragraph of the 9th article the persons who declare the works of art in an improper way with its origin although they have an enterprise certificate and the persons who do not obey the prohibition stated in the 2nd paragraph shall be penalized with heavy fine from 2.000.000 to 4.000.000 liras even if their acts form another offense, the persons who have been prosecuted and the ones whose offense is fixed shall be penalized with heavy fine from 3.000.000 to 6.000.000 liras even if their acts form the same offense; the penalty provisions, which can be implemented in case the situations stated in this paragraph form another offense or offenses, shall be concealed.

Administrative Penalty:

Article 12:

10.000 liras of fine shall be collected by the municipalities from the works of art or from their copies that have no enterprise document or banderole or special sign, with regard to the 9th article.

Outside the municipalities, these fines shall be given by the superior local administration chief.

These fines shall be collected by the inventory official according to the law provisions numbered 6183 on procedure of public receivable collection.

An objection can be raised against the administrative penalties to the criminal court of peace in 15 days from the date of declaration. The objection shall not stop the execution of the penalty given by the administration.

In situations where there is no indispensability, the objection shall be accomplished in the shortest time by inspecting the document. The penalties upon the objection are final.

Abolished Provisions:

Article 13:

The 6th article of the police duty and authority law dated 4 July 1934 and numbered 2559 has been abolished with the annexes and amendments.

Provisional Article 1:

The regulations to be passed in this law shall be prepared in three months from the validity date of the Law and shall be put into force by the council of ministers.

Provisional Article 2:

Enterprises are obliged to get license in three months from the issuing of the regulations. Penalty provisions shall not be applied within this period.

Provisional Article 3:

The works of art still existing in the market with no banderole shall be registered and recorded on the person presenting the copyright or display right and enterprise certificate shall be given in six months from the date when the regulations have been put into force. But these works of art shall be declared to the ministry with a declaration. 500 liras from every copy of the film, 100 liras for each banderole from every video copy, 25 liras from every record and 10 liras from every audio cassette shall be taken with 2.000 liras of register and record charge from the present domestic and foreign works of art provided that these declarations are taken as a base. Penalty provisions shall not be applied within the 6 months period.

Provisional Article 4:

Every kind of cinema work and their similar ones, which were being inspected and have been inspected by the Film Inspecting Committees on the date when this law has been put into force, and information about them, sources and material (display and record copy machines) shall be transferred to the Ministry by the Ministry of Interior in one month from the date when the regulations have been put into force. The former committees continue to perform their duties within this period.

Validity:

Article 14:

This law shall come into force on the date of issue.

Execution:

Article 15:

The Council of Ministers execute these provisions of law.

5/2/1986



Not: 3257 sayılı Sinema,Video ve Müzik Eserleri Kanunu'nun ingilizce tercümesidir.
Türkçe metin: http://www.hukuki.net/kanun/3257.15.text.asp (original Turkish code)
#106
General Directorate of Copyright and Motion Pictures

Law no: 5846,  dated 05/12/1951 (d-m-y)
Official Gazette Nr.7981, dated 13/12/1951

Intellectual Works and Works of Art

Description:

Article 1:

According to this law, a work of art is every kind of intellectual products and products of art that carry the characteristics of its owner and which are accepted as works of science and literature, music, fine art works and cinema according to the provisions below.

Varieties of the Intellectual Art and Works of Art:

I-  Science and literature works of art:

Article 2:

Science and literature works of art are the followings:

1. (Amendment: 7.6.1995-4110/art.1) Works of art expressed by speech of writing in any way and computer programs expressed in any way and preparation plans of these on condition that they shall bring the result of the program in the next process;

2. (Amendment: 1.11.1983-2936/art.1) Any kind of dances, written choreography works of art, pantomimes and these kind of stage works of art without lyrics.

3. (Amendment: 7.61995-4110/1) Every kind of photograph works of art without esthetic qualification, models belonging to topography, architecture and town planning representations and projects, architectural models, industry, environment and stage planning projects.

Thoughts and principles that have been formed by including the basic thoughts and principles shall not be accepted as works of art.

II- Musical Works of Art

Article 3: 

Musical works of art are compositions with and without lyrics.

III- Fine Art Works:

Article 4:

(Amendment: 7.6.1995-4110/2)

Fine art works that have esthetic qualification are the followings:

1. Oil paint and water paint tableaus, every kind of paintings, designs, pastels, engravings, works of art drawn or determined by mine, stone, wood or other materials, calligraphy, serigraphy.

2. Statues, relieves, carvings.

3. Architectural works of art.

4. Handicrafts and small works of art, miniatures and decorative works of art and textile, fashion designs.

5. Photographic works of art and slides.

6. Graphic works of art.

7. Caricatures.

8. Every kind of typecasting. The usage of works of art such as sketches, pictures, models and projects as industrial models and pictures shall not affect their characteristic of being an intellectual art and work of art.

IV-  Cinema Works of Art:

Article 5:

Cinema works of art are the followings:

1.  Cinema films,

2.  Films with educative and technical characteristic or films determining the daily events,

3.  Any kind of projection diapositives with scientific, technical or esthetic characteristic.

In case the films mentioned above are displayed by projection, they shall be included in the group of cinema works of art, even if they have been fixed on a substance other than film or glass.

Films that are only to convey compositions, speeches, conferences, etc. shall not be accepted as a cinema work of art.

V- Processing:

Article 6:

Intellectual art and works of art that the main ones are written below, which have been created by benefiting from another work of art and which are not independent in comparison with it, are

1.  Translations,

2.  Translation of works of art such as novels, stories, poems and theatre plays into a kind other than these mentioned kinds.

3.  Making the musical works, fine arts, science and literature works of art film or making them appropriate to be filmed and broadcast in radio and television.

4.  Musical arrangements and compositions.

5.  Changing the fine arts from one form into other forms.

6.  Making the works of art of an artist collected works.

7.  Arrangement of selected or collected works of art for a purpose or within a special plan.

8.  Making a work of art that hasn't been published appropriate for publication at the end of scientific researches and studies (ordinary transcriptions and facsimiles that are not productions of scientific researches and studies shall be excluded from this).

9.  Explanation or expounding or abbreviation of a work of art belonging to another person. The processing that has the characteristic of the processor shall be accepted as a work of art according to this law.

10. (Annex: 7.6.1995-4110/3) Adaptation, arrangement or any kind of change in a computer program.

11. (Annex: 7.6.1995-4110/3) Databases that have been created by selecting and collecting the materials for a certain purpose and within a special plan. (However, the protection provided here cannot be enlarged to the protection of data and material that are included in the in the database).

VI-  Works of art that have become public and that have been issued:

Article 7:

A work of art that has been presented to public with the approval of its owner shall be accepted as publicized. A work of art shall be accepted as issued in case its copies achieved by copying from its original with the approval of its owner are presented to the public by offering to sale or distributing or by offering for trade. The provision of 2nd paragraph of Article 3 of press law numbered 5680 is reserved.

Owner of the Work of Art

A) Description:

I-  In General

Article 8:

(Amendment: 7.6.1995-4110/4)

The owner of a work of art is the person who creates it.

The financial right owners of the works of art created by the officials, charged workers while they were doing their duties are the persons employing them or appointing them, unless the otherwise is comprehended due to the special agreement between them or because of the character of the work. This rule shall be implemented on the members of the legal persons.

The real owner of the work of art of the processing owner is the person processing it on condition that the rights are preserved. The producer or publisher of a work of art is entitled to use the financial rights only in accordance with the agreement to be made with the owner of the work of art.

In cinematography works of art; the director, the composer of the original music and the scenarist are together the owners of the work of art. The co-owners of the work of art are entitled to transfer the financial rights to the producer with an agreement to be made and with an adequate price.

After the co-owners of the cinematography work of art have transferred their financial rights, they are not entitled to object to the copying, distribution, public presentation, cable broadcasting, broadcasting with television or other mediums, subtitle writing or dubbing by the producer unless there is a contrary or special provision.

II- Owners of the Works of Art being more than one

Article 9:

In case it is possible to classify the work of art created by persons more than one, each of these persons are accepted the owner of the part he has created.

Unless the contrary has been agreed, each of the persons who have created the work together is entitled to demand the change or the participation of the others for the publication of the work. Unless the other party participates with no cogent grounds, the court shall be entitled to give permission. The same provision shall be implemented on the use of financial rights.

III- Association between owners of work of art

Article 10:

In case the work of art created by participation of more than one person forms an inseparable whole, the owner of the work of art is the association of the persons creating it. The provisions on common company shall be implemented to the association. In case one of the owners of the work of art does not approve the transaction that shall be realized together without any cogent ground, the court shall be entitled to give this approval. Each of the owners of the work of art is entitled to act individually in case their common benefits have been violated. Technical services or aids belonging to details made in the creation of a work of art shall not form a principle to participation.

Conjectures on owners of the work of art

IV-  In works of art that the owner of the work of art has been stated:

Article 11:

In copies of an issued work of art or in the original of a work of art, the person using a name or a known pseudonym as the owner of it, shall be accepted as the owner of the work of art until the opposite is firm.

(Amendment: 7.6.1995-4110/5)

In conferences and presentations made in public places or made by radio-television, the person habitually introduced as the owner of the work of art shall be accepted as the owner of the work of art,  unless another person is accepted as the owner of the work of art via the conjectures in the first paragraph.

V- In works of art in which the name of the owner is not stated:

Article 12:

Unless the owner of an issued work of art is not determined according to Article 11, the person publishing or if it is also unknown the person copying is entitled to use the rights and authorities of the owner of the work of art on behalf of himself.

These authorities belong to the person giving lecture or making it performed by a representative in cases when the owner of the work of art is not known.

According to this article, common representation provisions shall be implemented to the relations between the authorized persons and the real right owners unless the otherwise is agreed upon.

Intellectual Rights

A) The Rights of the Owner of the work of art

I-  In General

Article 13:

Financial and moral benefits of the owners of the intellectual works and works of art shall be protected within the framework of this law. The rights and authority acquired by the owners of the works, includes the whole and parts of the work.

II- Moral Rights

1.  Authority of public presentation

Article 14:

The owner of the work shall exclusively determine whether the work will be presented to public or not, its publishing date and its methods.

Only the owner of the work shall be entitled to give information about the contents of a work whose whole or most of its parts have been publicized or has not been presented to public with its basically.

The owner of the work shall be entitled to prohibit the original or the processed forms of a work to be presented to the public or its publishing, despite his giving authority to another person, in case the presentation of the work to public or its publishing methods have a characteristic of harming his honor and dignity. Renouncing this right with a contract shall be invalid. Right of indemnity of the counter-part shall be reserved.

2.  Authority of emphasizing the name

Article 15:

The owner of the work shall exclusively have the authority of deciding on the work to be presented to public and its publishing with the name of the owners, with his pseudonym or without his name.

Indicating the name or the mark of the real owner of the work, in line with the decision or the customs, on the copies of a fine art work obtained with copying or on the original or copied samples of a process, shall be an obligation.

In case there are controversies about the person who made the work come into being or there is any person claiming that he is the owner of the work, the real owner shall be entitled to demand the proof of his right from the court.

(Annex: 7.6.1995-4110/6)

On the architectural constructions, having the qualifications of a work, name of the owner of the work shall be written with the written request of the owner on a visible side of the work.

3.  Prohibiting making changes in the works

Article 16:

Without the written permission of the owner of the work, abbreviations, additions and other changes on the name of the owner shall not be made.

The person processing, presenting to public, copying, publishing, representing and distributing the works in different ways, the works, with the permission of the law and the owner of the work, shall be entitled to make changes, deemed as necessary with regards to the techniques of processing, copying, presentation and publishing without the particular permission of the owner of the work.

The owner of the work shall reserve the right of opposition for changes harming his honor and dignity or damaging the nature and characteristics of the work, despite his permission, which is without any condition or restriction. Renouncing this right with a contract shall be invalid.

4.  The rights of the owner of the work against the owner and the possessor

Article 17:

The owner of the right of copying and processing shall be entitled to demand to benefit from the work in necessary proportions from the possessor of the original and as a result the owner of the right shall not be entitled to demand the work to be entrusted to him.

(Amendment: 7.6.1995-4110/7)

The owner of the work shall be entitled to demand to take the work provided that he shall return it back, in case of the work's being single and original, for using it in his studies and exhibitions including all of his own periods.

5.  Using the rights

a)  In General

Article 18:

Even if the continuation period of the financial rights have ended, the owner of the work shall be entitled to use the rights he possesses as per articles 14,15 and 16 in his lifetime if he is the real person, in his continuing period if he is the legal person. The distinctive young and limited people shall not depend on the approval of the legal representatives.

b)  Persons who shall be entitled to use the rights

Article 19:

In case the owner of the work has determined the methods of using the authority he had acquired as per the first paragraphs of articles 14 and 15, or he hasn't left this subject to another person; using this authority and his will shall belong to the executing officer, if this authority is not determined, they shall belong to his surviving wife, his children, his relative inheritors, his mother and father and his brothers or sisters, respectively.

The persons stated within the paragraph above shall be entitled to use the rights given to the owner of the work, stated within the third paragraphs of articles 14,15 and 16, after the death of the owner of the work, on behalf of them, during the continuation of the financial rights and within 50 years pursuant to the death of the owner of the work. In case the owner of the work or the authorized persons according to the first and second paragraphs, do not use their authorities, the person who has acquired a financial right from the owner of the work or from his successor, proving his legal benefit, shall be entitled to use the rights of the owner given by the third paragraphs of the articles 14, 15 and 16 on behalf of himself.

In case the authorized persons being more than one do not agree on the intervention, the court shall solve the controversy properly in line with simple judgement methods.

(Amendment: 1.11.1983-2936/art. 2)

The Ministry of Culture shall be entitled to use the rights given to the owner of the work as per the third paragraphs of articles 14,15 and 16, on behalf of the Ministry; in case non of the authorized persons stated in the article 18 do not exist or do not use their authority, despite they exist or in case the duration determined in the second paragraph has ended or it is considered as important for the culture of the country.

III- Financial Rights

1.  In General

Article 20:

(Amendment: 1.11.1983-2936/art.13)

The right of benefiting from a non-publicized work in any way or methods shall exclusively belong to the owner of the work. The right of benefiting from a publicized work given exclusively to the owner of the work, shall consist of the financial rights within this law. Financial rights shall not depend on each other. Possessing or using one of them shall not affect the other.

In case of the owner's membership of a Vocation Union, his work stated within the written qualification certificate, following the related financial rights, collection of the copyright costs, the distribution of this costs and the work shall be made by the Vocation Union.

The essentials and methods related with the qualification certificate shall be determined with the regulation to be prepared by the Ministry of Culture.

2.  Varieties

a)  The right of processing

Article 21:

The owner of the work shall exclusively have the right of benefiting from the work by processing it.

b) The right of copying

Article 22:

(Amendment: 7.6.1995-4110/art. 8)

The owner of the work shall exclusively have the right of copying the processing of a work as a whole or in parts. Making a second copy of the original work, recording a work on any kind of equipment used for transferring a sign, sound and vision of a work that is known or that will be developed in the future, any kind of audio and music records or applications of sketches of plans and projects related with architectural works shall be considered as copies. The same rule shall be valid for the relief and perforated moulds. The right of copying includes loading, visualization and operating, sending and storing activities of a program, within the conditions of a temporary copying of a computer program.

c)  The right of distributing

Article 23:

(Amendment: 7.6.1995-4110/art. 9)

The right of distributing the copies of a work obtained by copying from its original or its processing, hiring them out, offering them for sale or making them commercial subjects in any way and the right of benefiting from them in this way shall exclusively belong to the owner of the work. The right of prohibiting the importation of the copies which were made without the permission of the owner of the work shall exclusively belong to the owner of the work.

The right of distribution that the owner of the work acquires shall not be violated as a result of the transfer of his possession by using the right owner's right, distribution of the copies and their being offered for sale for the first time and their being rented out in the country, provided that the right of renting out and loaning to public shall be reserved.

ç) The right of presentation

Article 24:

The right of benefiting from a work, by signing, playing, performing or displaying its copies and processing directly or with the equipment used for sign, sound and picture transfer which can be deemed as presentations shall exclusively belong to the owner of the work.

The right of transferring a work with technical equipment from its occurrence place to another for its presentation to public shall exclusively belong to the owner of the work.

(Annex: 1.11.1983-2936/art. 4)

In case of the membership of the owner of the work of a Vocation Union, the right of presentation shall not be used by other real and legal persons within the qualifications stated in the qualification certificate, without the written permission of the Vocation Union. However, the provisions within the articles 33 and 44 shall be reserved.

d) The right of broadcasting by radio

Article 25:

The right of benefiting from a work by distributing its originals or processing with radios or similar technical equipment used for transferring signs, sounds or pictures and so taking the distributed work from another radio establishment by transfer and re-distributing it wired or wireless or presenting them with loudspeakers or presenting signs and sounds with similar equipment, in public places, shall exclusively belong to the owner of the work.

3.  Duration

a)  In General

Article 26:

The financial rights given to the owner of the work shall be restricted with time. Any person shall be entitled to benefit from the financial rights of the owner of the work after the end of the protection period except the situations stated in the articles 46 and 47.

The protection periods of a work or its processing shall not depend on each other.

This provision shall be applied for the works stated in the first paragraph of article 9. The protection shall not start before the publicizing of a work.

For the works that are not published in sheets and fascicles, the publishing date of the last sheet or fascicle shall be deemed as publicity date of the work.

The publicity date of several volumes published in intervals, of the works such as periodicals and annuals, shall be the publishing date of these works.

The periods beginning from the date of publication, shall be examined pursuant to the end of the year in the beginning of which a work was publicized or deemed as publicized as per the fourth paragraph.

In the examination of the periods beginning from the death of the owner of the work, the first day of the year following the year of the death of the owner of the work shall be considered as the beginning date.

The period mentioned in the first paragraph of article 10 shall begin from the date of the death of the last surviving person of the owners of the work.

b) The continuation of the periods

Article 27:

(Amendment: 7.6.1995-4110/art. 10)

The protection period continues within the lifetime or 70 years pursuant to the death of the owner of the work.

The protection periods of the works that have been publicized after the death of their owners shall be 70 years.

The protection period shall be 70 years after the publicity date of the work within the situations stated in the first paragraph of article 12, provided that the owner of the work has announced his name before the end of this period.

In case the first owner of the work is a legal person, the protection period shall be 70 years pursuant to the publication of the work.

c)  Protection period on Turkish translation

Article 28:

(Amendment: 7.6.1995-4110/art. 11)

In case a scientific or a literary work is published in a language other than Turkish, is published as translated into Turkish by the owner of the work or by another person within 70 years pursuant to its publication, 70 years should pass for its translation into Turkish.

ç) Periods of the handcrafts, small sized works of art, works of photograph and cinema

Article 29:

(Amendment: 7.6.1995-4110/art. 12)

The protection periods for the handcrafts, small sized works of art, works of photograph and cinema shall be 70 years pursuant to their publication.

B) Limitations

I-  Considering the public order

Article 30:

The rights of the owner of the work shall be used for proving the work in the presence of the court and of other formal positions in the undiscriminating police and fine affairs, to constitute a subject for a conduct. The photographs shall be copied and distributed in any way by the formal positions and with their orders, by other persons, with the consideration of public license for legal purposes, without the permission of their owner.

The rules of public law; prohibiting, allowing or controlling the work's having a commercial situation, its being presented or its being used in different ways shall be reserved.

II- Considering the General Benefits

1.  Regulations and Jurisprudence

Article 31:

Augmenting, distributing, operating the formally published or announced laws, rules, regulations, communications, circulars, judicial decisions and benefiting them shall be unconstrained.

2.  Speeches

Article 32:

Copying the speeches and talks made in the Turkish Grand National Assembly, within other formal assemblies and congresses, in the courts and public meetings, in order to give news and information, reading these in public places, broadcasting these by radios and other mediums shall be unconstrained.

The owners of the talks and speeches shall not be mentioned in case the nature of the event and the situation do not require.

The owner of the work has the right to copy pr distribute the talks and speeches for a purpose other than the ones mentioned in the first paragraph.

3.  Freedom of Presentation

Article 33:

Gratis presentation of a published work, exclusively for education and instruction and not aiming a benefit, in the public places shall be unconstrained.

The same rule shall be implemented for the performances whose complete profits will merely be assigned to charities. In addition to this, the name of the work shall be customarily mentioned.

4.  Works selected and collected for education and instruction

Article 34:

(Amendment: 7.6.1995-4110/art. 13)

Creating selected and collected works within righteous proportions, by taking quotations, from the published works of music, science and literature and from the publicized works of art, which will be assigned for the purpose of education and instruction. The kinds of works stated in the third paragraph of article 2 and in the first and fifth sub-paragraph of the fourth paragraph shall only be quoted for explaining the content of the selected and collected works. However, this freedom shall not be used in case it harms the legal benefits of the owner of rights, unjustly or it contradicts with benefiting from the work, normally.

The provisions of the first paragraph shall be implemented for the publishing (school radio) that have exclusively prepared for schools and that have been approved by the Ministry of Education.

In all these situations, the name of the work and the name of the owner of the work shall be customarily mentioned.

5.  Freedom of Quotation

Article 35:

Taking quotations from a work shall be acceptable within the situations below:

1. Taking some of the sentences or paragraphs of a publicized work, to be put into an independent work of science and literature.

2. Taking the themes, motives, passages at most and parts of intellectual type of a publicized composition, to be put into an independent music works.

3. Taking the publicized works of fine art and other published works with rightful proportions to be put into a scientific work, for explaining the content.

4. Showing the publicized works of fine art in the scientific conferences lectures in the classes to explain the subject with projectors and other similar means and the quotations shall be made definitely. The quoted part of the scientific work shall be stated other than the name of the work and the name of the owner of the work.

6.  Newspaper Content

Article 36:

Daily news and information broadcast to public by press or radio shall be freely quoted provided that the article 15 of the Press Law shall be reserved. In case the right of quotation of the articles or paragraphs, concerning social, political and economic events, published in the newspapers and magazines,  is not explicitly reserved, its being taken by other newspapers and magazines in the same form or in a form that is processed and its being broadcast by radio or other means shall be unconstrained. Taking the mentioned articles and paragraphs as shortened press summarizes and broadcasting them by radio or other means shall be acceptable although the right of quotation is reserved.

For all of these situations, mentioning the name of the quoted newspaper, magazine or agency or, if these quoted, the name of the source from which they quoted, the name of the owners of the articles besides their number, or mentioning the pseudonyms and signs of them shall be essential.

7.  Interview

Article 37:

Recording, some fragments of the intellectual works and works of art related with daily events, on the equipment used for sign, sound and picture transfer, shall be acceptable, provided that they have the qualifications of interview. Copying, distributing, presenting and broadcasting these fragments, taken by this way, shall be unconstrained.

Broadcasting some of the fragments of publicized scientific and literary works by radio shall be acceptable provided that they have the limits of an interview.

III- Considering the personal benefit

1.  Using Personally

Article 38:

(Amendment: 7.6.1995-4110/art. 14)

Copying all of the intellectual works and works of art for using them personally without aiming to publish and profit, shall be possible. However, this copying, without a rightful reason, shall not harm the legal benefits of the owner of the right or shall not be contrary to benefiting from the work normally.

Every person shall be entitled to process the musical, scientific and literary works and shall be entitled to have them processed, within the framework of the provision of the first paragraph.

In case of a non existence of determining provisions, including the correction of mistakes, copying and processing a computer program by the person who has legally obtained it, shall be unconstrained.

A computer program's being loaded, operated or being corrected by the person who has legally obtained it shall not be prevented with a contract. Having the right of using the computer program, a person's making a reserve copy shall not be prevented with a contract provided that it is necessary for using the program. Having the right of using the computer program, a person's observing, examining or testing the program for the determination of thoughts and principles forming the base of an element of the program, shall be unconstrained while he is performing the acts of loading, visualization, operation, sending and storing the computer program.

1.  Performance of these acts by the owner of the license, the owner of the right of using the copy of a computer program, another computer owner and by another person or by the person having the authority to make this on behalf of them,

2.  Not offering the necessary information, to usage, for the performance of interoperation, for the people stated in the paragraph number 1.

3.  These acts' being limited with the parts of the programs for performing the interoperation.

The provisions of the paragraph above shall not allow:

1. Using the independently created computer program for different purposes other than performing its interoperation,

2. Giving the independently created computer program to others except for the necessary situations of interoperation,

3. Developing, producing or marketing a computer program similar with its basic expressing methods or using the information for acts violating the intellectual rights, with the information that is obtained by its application.

The provisions of the sixth and seventh paragraphs shall not be considered as; the program is allowed to be used contrarily to normal benefits of it or is allowed to be used improperly, interfering the legal benefits of the owner of the right.

2.  The rights acquired by the composers

Article 39:

(Amendment: 7.6.1995-4110/art. 14)

A literary work shall be used in a musical work only with the written permission of the owner of the work. When every kind of texts for music, librettos or other works that are used in a musical work are composed, the permission shall be documented in every phrase before the joint work's being put into recording, registration and commercial circulation and shall be controlled by the owner of the rights and by the other related persons.

The gratis distribution of the texts for music by including them in the programs of radio and television and by printing in order to give them on or with the sound-carriers shall be possible. The person making use of these possibilities shall be obliged to emphasize the name of the work or the name of the owner of the work.

3.  Copying and Exhibition

Article 40:

The fine art works that are permanently placed on public roads, streets and public squares shall be copied with pictures, graphics, photographs and other means, shall be distributed, displayed by projecting, broadcast by radio or other means. This authority shall exclusively be valid for exterior forms in architectural works.

In case there is no restriction of prohibition put explicitly on the work of art by its owner, these shall be exhibited by its possessors or by other persons, with their approbation, in public places.

The works of art to be sold by auctioning shall be exhibited to public. A work exhibited or auctioned in public places shall be copied and distributed in catalogues, booklets and similar printings by the persons organizing an exhibition or auction of a work. Mentioning the name of the owner of the work shall not be an obligation in these situations in case there is no contrary custom.

4.  Using records, videocassettes and audio cassettes in public places

Article 41:

(Amendment: 1.11.1983-2936/art. 6)

With the permission of the owner of the work, works of music, science and literature, which have been recorded with the equipment used for repeating sound-visions, sounds or visions and which have been exclusively marked to be presented in public places shall be presented by playing or displaying them in public places. In case the records, videocassettes and audio cassettes haven't been exclusively marked, the owner of the work or the professional organization that the owner authorized, shall have the reserved right of demanding a proper substitute as indemnity. The procedures and principals related with; determining the amount of the indemnity, implementing it, its division among the owners of the work and the vocation union shall be determined, after asking the viewpoints of the Turkish Radio and Television Company and of the vocation union, by the regulations to be offered by the Ministry of Culture.

IV-  Authority acquired by the government

1.  Establishing the vocation unions

Article 42:

(Amendment: 7.6.1995-4110/art. 16)

The owners of the work or the owners of the neighboring rights shall establish professional organizations, to protect the common interest of its members, to provide the following of their rights acquired by this law and to provide the collection and division of the payments to be made, among their owners with the suggested rules and procedures of the legislation, in accordance with the regulations and type status offered by the Ministry of Culture and approved by the Council of Ministers. The determination of the field shall be defined with the regulations and vocation unions, more than one, in the same field shall be established. Each of the unions shall be able to work by establishing branch-offices in line with the necessities.

Vocation unions shall be entitled to establish a superior establishment in accordance with the type status which is offered by the Ministry of Culture and which is approved by the Council of Ministers.

Vocation unions and federations are legal persons that are dependent on social laws. Their members shall not be obliged to invest capital and to have the responsibilities related to profit and loss.

The general, administrative, controlling, technical-scientific boards and the board of honor shall be organized as the obligatory offices within the type status of the vocation unions and federations.

The points related with founding, controlling, checking the unions and federations and the minimum number of the members necessary for their first general assembly, their other optional offices, the foundation methods of their boards, the number of the members and their functions, the conditions of being included to the membership, getting out of it or being expelled from a membership, the determination of the regions where their branch offices shall be established, public institutions and foundations in or out of the country, their relations with the real and legal persons of the special law, their rights and authorities in these relations, their financial relations with their members, the obtained royalty and distribution of indemnities and the points related with other procedures and principles; shall be defined by the regulation offered by the Ministry of Culture, after asking the viewpoints of the related foundations.

The second paragraph of article 21 of the Law of Associations and articles 30,37,40,42,43,44,45,48,65,66,67,68,69,70 and 90 of this law shall be applied, with the criminal provisions, to the vocation unions and also the federations to be established in accordance with this article.

The financial rights of the owner of the work of Turkish nationality shall not be followed by other unions, association and similar foundations except the vocation unions established in accordance with this article, in the country.

2.  Copyrights in Radio and Television Broadcasts:

Article 43:

(Amendment: 7.6.1995-4110/art.17)

The copyright shall be paid for the intellectual works and works of art, used in the broadcasts of radio and television.

The permission of the owner of the work and paying a price shall not be necessary for the short fixings, used for introduction and those do not harm the rights of the whole work, in any type of broadcasts.

Using the word and music programs of a part of the work aiming to introduce them and using them as the helper dramatic elements, signals, credits, transition music and using them for other purposes shall be deemed as short fixings.

No price shall be paid to the owner of the work for the works benefited during their being broadcast abroad by the short-wave radio stations of the Turkish Radio and Television Company.

3.  The Signing of The Intellectual Works and Works of Art

Article 44:

(Amendment: 7.6.1995-4110/art.18)

The owner of the financial rights, the persons producing the equipment used for repeating the signs, sounds of the intellectual works and works of art and the persons publishing these shall jointly be obliged to have the signs and serial numbers of the works to be offered for sale, to be distributed or to be put into a commercial situation, by copying in accordance with this law.

Real and legal persons producing or importing any kind of empty video cassettes, audio cassettes, compact discs, computer discs shall be obliged to transfer the amount of money they have collected in a month on the special account to be opened on behalf of the Ministry of Culture in a national bank until the half of the following month excluding the quantity to be determined by the Council of Ministers, not exceeding five percent of the price of production and importation.

The Ministry shall divide ¾ of the collected amount in the account, among the vocation unions in order to make the vocation unions distribute it among the owners of the rights, which they present. Vocation unions distribute this money to its owners according to the distribution plan to be approved by the Ministry. approving these plans, the Ministry shall take the amount of copying of the work , represented by the vocation unions, into consideration. The Ministry shall use the remaining amount, ¼ for cultural and social purposes and for preventing the transgression of the intellectual rights.

The procedures and principles related with; the signs and serial numbers to be put on the copies of intellectual works and works of art aiming to be presented in public places, to whom the number of copied samples or distributed shall be informed and other points shall be determined by the regulations to be offered by the Ministry of Culture.

4.  Sharing out the selling price of the fine art works

Article 45:

In case the originals of the works stated in the paragraph 1 and 2 of article 4 and the originals of the works handwritten by the writers or composers as stated in the paragraph 1 of the article 2 and in article 3; is sold once by the owner of the work or his inheritors, the work within its protection period is transferred once to the other as a selling subject in exhibitions, auctions and in stores selling these kinds of goods and in case of disproportion between the previous and latter selling prices, the seller shall be obliged to give the loans by a decree to the owner of the work, to his legal inheritors of the 3rd degree (except this degree) as per the provisions of inherit; to his wife, if she is dead or non of these exists, to the vocation union.

In the decree:

1. Sharing tariff for the proportion of the difference provided that this shall not exceed the ten percent of the difference of the price.

2. The price of the sales not exceeding the determined amount shall be exempted from loaning the share.

3. The branch of the vocation union that shall be concerned with regard to the types of works.

The owner of the establishment in which the selling took place and the seller shall be jointly responsible.

In cases of compulsory selling, the share shall only be paid after the claims are completely paid.

The prescription of loaning the share is five years pursuant to the selling date.

5.Benefiting Authority of the Country

Article 46:

(Amendment: 1.11.1983-2936/art. 10)

The works explicitly prohibited to be copied or distributed by its owner, the works that are kept in museums and in similar institutions and not publicized yet shall belong to the public institution in which it is kept; provided that the protection period related with the financial rights has come to an end.

The points related with the public institutions and foundations and persons demanding to benefit from them for scientific and other purposes, from whom the permission shall be taken by the persons or institutions and the costs to be paid, and for which purposes these costs shall be spent; shall be determined by the regulations to be offered by the Ministry of Culture and after asking the viewpoints of related institutions.

6.Making it Public

Article 47:

With a decree, the authority of benefiting from the financial rights of the work, considered as important for the culture of the country, it shall be made public before the end of the protection period provided that a proper substitute is paid to the owners of the rights.

For deciding on this point, the work shall be published in Turkey or by Turkish citizens out of Turkey and the copies of the work shall be sold out in two years and the publishing of it in a new form by the owner of the work shall be considered as impossible within a proper period.

In this decree:

1.  The name of the work and its owner

2.  The substitute to be paid to the people whose vested interests have been transgressed

3.  The office or the institution to use the financial rights

4.  The net profit to be obtained after the redemption of the paid substitute and for which cultural purposes it shall be assigned, is written.

CONTRACT AND POWER OF DISPOSAL

A) Current Existing Power of Disposal

I-  Fundamental Acquisition

Article 48:

The owners or the inheritors of the work shall be entitled to transfer their own legal financial rights limited or unlimited, reciprocal or unrequited with regard to time, place and content.

He shall leave the financial rights to another person with regard to the authority of using them.

(License)

If the procedures of possessions stated below in the paragraph concern a work that has not brought into being or a work to be completed, they shall be invalid.

II- Acquisition by Transfer

Article 49:

A person who had been acquired to use a license of a financial or a related right as the owner or an inheritor, shall be entitled to transfer these rights or license usage only with a written approbation, to another person.

III- Contracts

1.  Works of Art to be brought into being

Article 50:

A work of art shall be notable even if the undertakings on power of disposal procedures stated in article 48 and article 49 have been completed before it has been brought into being.

Possible undertakings concerning all of the works of an owner or a certain kind of them shall be annulled in 1 year after the date of denunciation by each of the parties, as an expression of their decision.

If the owner of the work of art dies or loses his capability before the completion of the work or if the completion of the work is impossible without an excuse, the mentioned commitments shall automatically be annulled. On the other hand, the same provision shall be valid in case of the owner's bankruptcy or his being unable to use the financial rights, in accordance with the contract, or his incapability of using them without an excuse.

2.  Possibilities of benefiting in the future

Article 51:

The contracts relating to the transferring of the financial rights that shall be given to the owner of the work of art or use of them by another person with the regulation that may be brought out in the future shall be invalid.

The same provision shall be valid for the contracts that comprise the extension of the comprehension of the financial rights with the regulation that may be brought out in the future or renouncing the authority resulting from the prolonging of the protection or their transfers. 

IV-  Singular

Article 52:

The contracts and possessions including the financial rights shall be written and the rights constituting the subject shall be shown one by one.

V- Surety

1.  Non existence of the right

Article 53:

The person who has transferred a financial right or has given his using license to another, shall be the guarantor of the existence of the right of the acquired person in accordance with article 169 and article 171 of the law of obligations.

Demands resulting from unjust actions or gratuitous property acquisitions shall be reserved.

2.  Existence of the Authority

Article 54: 

The person who had acquired a financial right or right of using license from an unauthorized person shall not be defended despite his good will.

The person who has transferred a financial right or using license to another without authority shall be bound with indemnity of invalidity of the power of disposal if he does not prove that the counter part is aware or should be aware of his not having authority. In case of a fault, the court shall judge on an extensive indemnity if justice is requisite.

Demands resulting from unjust actions or gratuitous property acquisitions shall be reserved.

VI-  Commentary Principles

1.  Comprehension

Article 55:

In case there is no contrary decision, transfer of a financial right or being given a license, shall not include the work's translation and other procedures.

2.  License

Article 56:

If the license may be given to others by the financial rights possessor, it is the ordinary license; if it is reserved for one person it is the consummate license. Every license shall be considered as ordinary license if a law or a contract has not been perceived contrarily.

3.  Transfer of property

Article 57:

The transfer of property on the original or copied samples shall not include transfer of intellectual rights if no contrary decision is made. Person possessing the right of copying a work of fine art or have acquired being the possessor of copying equipment such as molding etc. shall also have acquired the copying right, if no contrary decision is made.

A person who shall have acquired the possession of the copies of a cinema work, shall also have acquired the representation right of it, if no contrary decision is made.

VII- Right of Renunciation

Article 58:

Owner of the work of art shall renounce the contract, in case the person who acquired the financial right and license shall not make use of time, rights and authority properly following the requirements during the agreed period or if no period is determined and if the benefits of the owner of the work of art is thoroughly neglected.

The owner of the work of art requesting to use his renunciation right shall be obliged to send a proper permitted delay through notary for using the rights existing in the contract. Determination of permitted delay shall not be required in case the right of using it is impossible for the acquired person or is rejected by his own or being sent a permitted delay and if the benefits of the work's owner are thoroughly in danger. Renunciation shall be completed with a denunciation through notary if permitted delay is not resulted or there is no need for a permitted delay. Within 4 weeks pursuant to the denunciation of renunciation, no objection shall be brought against the renunciation. In case there's no fault of the acquired person in using his financial right or if the owner of the work has more faults, the acquired person shall be entitled to demand indemnity from the owner for justice if necessary.

Quitting the decision of renunciation beforehand is unacceptable, as the restrictions forbidding these rights being under discussion for more than 2 years, shall be invalid.

VII- Return of the Right to the Owner of the Work

Article 59:

If the owner of the work or its inheritors transferred a financial right for a certain implied purpose or for a certain period, the rights related with the removal of the purpose or the end of the period, shall return back to the owner. This provision shall be invalid in case of a death or bankruptcy of the person who has not been acquired the right of the transferring a financial right to another person with a contract; provided that using the right depends upon the acquired person as the necessity of the nature of the work.

Licenses given for a certain implied purpose or for a certain period shall be ended within the conditions stated in the first paragraph.

B) Quitting

Article 60:

The owner of the work of art or his inheritors shall quit their legally acquired financial rights without violating their actual possessions by an official bond arrangement and by the publication of this matter on the Official Gazette.

Quitting shall bring out the legal results resulting from the ending of the period of protection pursuant to the date of its publication.

Distraint and Mortgage

I-  Unacceptable Situations

Article 61:

On condition that article 24 and article 30 of Law on Execution and Bankruptcy be protected;

1. Drafts or copies of a work, which has not been publicized yet, under the possession of a owner of a work or his inheritors,

2. The financial rights of the works mentioned in the first paragraph except for cinema works,

3. Claims of the owner of the work related with financial rights besides money, shall not be a subject for a legal or contractual mortgage right, for a compulsory execution or right of imprisonment.

II- Acceptable Situations

Article 62:

Within the framework of the provisions below:

1.  A draft or a copy of a publicized work

2.  Copies of a published work

3.  Financial rights of the owner of the work of art provided that his moral benefits, which are worth to be protected, shall not be violated

4.  Money owing of owner of the work resulting from legal procedures related to financial rights may be constituted as the subject for a legal or contractual right of mortgage, for a compulsory execution or right of imprisonment.

The mortgage contract related with the themes stated in the 1st paragraph shall only be notable with its written form. The mortgaged shall be shown on the contraction one by one.

Copying equipment such as moulds and etc. belonging to the works of fine art shall be taken from the possessors temporarily, for the application of compulsory execution, if necessary, in connection with the financial rights written in article 3 of the 1st paragraph.

The originals of the works of fine arts except architectural works and copies of music, science and literature works belonging to the owner of the work of art or his inheritors shall be taken from the possessors temporarily, for the application of compulsory execution, if necessary, in connection with the financial rights written in article 3 of the 1st paragraph.

C) Inheritance

I-  In General

Article 63:

Financial rights obtained with this law shall be passed through inheritance. Possessions related to the death in financial rights shall be acceptable.

II- Death of one of the co-owners of the work

Article 64:

In case one of the persons who have made the work come into being, dies before the completion or publicizing of the work, his share shall be divided among the others; these persons shall be obliged to pay a proper price to the inheritors of the dead. If they do not agree on the amount, the court shall determine it.

In case one of the persons who have made the work come into being, dies after the completion of the work, the others shall be free to continue the union with the inheritors or not. In case of their decision on continuation, the surviving owners of the work shall be entitled to demand a nomination of a representative from the inheritors on the matter of using their rights within the union.

III- The Inheritors being more than one

Article 65:

These financial rights obtained with this law exist in the heritage of the owner of the work and in accordance with article 581 of Civil Code, a representative shall be obliged to take the opinion of the inheritors for the procedures related with these rights.

Trials of Law and Penalty

A- Trials of Law

I-  Annulment trial of transgression:

1.  In general

Article 66:

Person whose moral and financial rights have been transgressed shall bring a suit against the transgressor for annulling the transgression.

A suit shall be brought against the owner of the establishment in case the transgression is made by a representative or the employees of an establishment during the fulfillment of their obligations. The fault of the transgressor or of the people stated in the article 2 shall not be a stipulation.

The court decides on the application of the necessary measures for the annulment of transgression according to the situation, by evaluating the moral and financial rights of the owner of the work of art, comprehension of the transgression, existence or non-existence of a fault or its seriousness if exists and transgressors' damages that shall be possibly affected in case of the refusal of transgression.

(Annex: 7.6.1995-4110/19)

The owner of the work of art shall bring a suit for annulment of the transgression and prohibition, in his place of residence.

2.  In case of transgression to financial rights

Article 67:

Annulment trial of transgression shall only be sued in case of the presentation of a non-publicized work to public without the will and wish of its owner and actual publication of the copies of the work to public. The same provision shall be valid in conditions of naming the work against the wish of the owner of the work.

The transgressor shall be obliged to include the name of the owner of the work both on the multiplied copies in circulation and on the originals, in case the owner of the work demanded declaratory action mentioned in article 15 or annulment of transgression, if the name of the owner of the work is not added or incorrectly added or ambiguously added on the work. On the condition that expenses will concern the transgressor, announcements at most on 3 newspapers shall be demanded according to the law.

The provision of the second paragraph shall be applied in case the sources are incorrectly, inadequately indicated or not indicated in the articles 32,33,34,35,36,39,40.

In case of an unjust alteration in the work, the owner shall be entitled to demand the followings:

1)  The owner of the work shall be entitled to demand the prohibition of the copying of the work, in amended form, its publication and presentation, its radio broadcast, and to demand the correction of the alterations in the copied samples that are in circulation or to demand them to be brought into their original form. If the alteration of the work has been made during the publication of newspapers, magazines and broadcasting or radios; the owner shall be entitled to demand the correction of alteration by announcement from the management of newspapers, magazines and radios that have published and broadcast the altered form of the work on condition that expenses shall concern the transgressor.

2)  (Amendment: 7.6.1995-4110/20) In fine art works, the owner of the work shall be entitled to claim that the alteration in the original is not made by himself or shall be entitled to demand his name on the work to be removed or to be changed. If the restitution of the previous form is possible and if the removal of the alteration does not do any harm to the benefits of the public and the owner thoroughly, the owner of the work shall be entitled to bring the work into its original form.

3)  In case of transgression to financial rights

Article 68:

(Amendment: 7.6.1995-4110/21)

In case the work is transferred without the permission of the owner of the right, published more than the number stated within or out of the contract, processed in a different form or broadcast by television and radio, presented; the owner, whose permission isn't granted, shall be entitled to demand at most three folds of his loss with regards to the current value.

In case a work is benefited from and if its copies are offered for sale, the owner of the work shall be entitled to demand the extermination of the copies, equipment used for copying such as films, moulds and etc.; or he shall be entitled to demand the copies and equipment used for copying such as films, moulds and etc. to be sold to him with a proper price not exceeding the cost price; or he shall be entitled to demand three folds of the quantity he shall demand in case of a contract. This matter shall not eliminate the legal responsibilities of the person copying without permission. In case copies of a work, made without permission, are offered for sale or the sale is considered as an unjust transgression, the owner of the work shall choose one of the alternatives written in the second paragraph.

In case the substitute demanding person makes a contract with the transgressor, he shall put forward all of his rights and authority against the transgressor.

II- Prohibition Trial of Transgression

Article 69:

The owner of the work exposed to the danger of transgression of his moral and financial rights shall be entitled to sue the prohibition of the possible transgression. The same provision shall be valid for the conditions of possible continuation or repetition of an actual transgression.

The provisions of the second, third and fourth paragraphs of article 66 shall be implemented within this situation.

III- Suit for Damages

Article 70:

(Amendment: 7.6.1995-4110/22)

The person whose moral rights have been damaged shall be entitled to sue for his loss of moral rights, for the damages to be paid. The court shall be entitled to decide on different types of moral damages instead of these or in addition to these.

The person whose financial rights have been damaged shall demand for the damages to the department concerning to unjust actions in case the transgressor has a fault.

The person who has been transgressed shall be entitled to demand the assured profit besides the damages, within the conditions stated in the first and second paragraphs.

Within this condition, the demanded substitute shall be reduced as per article 68.

B) Trials of Penalty

1.  Transgression to moral rights

Article 71:

(Amendment: 1.11.1983-2936/art. 11)

Contrary to the provisions of this law, intentionally:

Presenting or publishing a work without a written consent of the owner or the successor of the work that is publicized or not, to the public.

Naming a work or its copied samples without the written consent of the owner or the successor of the work.

Designating a person's work as his or designating his work as another's, or acting contrary to the second paragraph of Article 15.

Not indicating or indicating incorrect, inadequate or delusive sources for the situations in the articles 32,33,34,35,36,37,39 and 40.

(Amendment: 7.6.1995-4110/23)

Persons are condemned to imprisonment of three months to one year and to a heavy fine of 300 million liras to 600 million liras.

2.  Transgression to financial rights

Article 72:

(Amendment: 1.11.1983-2936/art.12)

Without the written permission of the owner of the right, intentionally:

Processing a work in any form.

Copying a work in any form. Selling, offering for sale or putting into circulation of the copies of a work or its versions.

Presenting, displaying or showing in public or broadcasting by radios and other similar ways, the work or its versions.

5- (Annex: 7.6.1995-4110/24)

Renting out a work or its versions.

6- (Annex: 7.6.1995-4110/24)

Persons importing the copies made without permission of the owner shall be condemned to imprisonment of three months to one year and to pay a heavy fine of 300 million liras to 600 million liras.

3.  Other offences

Article 73:

(Amendment: 1.11.1983-2936/art. 13)

Intentionally:

Offering the copies of a work for sale which is known or should be known that they are copied contrarily to the provisions of this article or presenting in public places or broadcasting by radios or benefiting from the copies of a work with the aim of making profit. Selling the copies of a work to others which is known or should be known that they are offered for sale contrarily to this provision or presenting in public places or broadcasting by radios or benefiting from the copies of a work with the aim of making profit.

Transferring, giving, mortgaging or making the subject of possession, a financial right or a license that does not exist or which is known or should be known that possession authority does not exist.

4.  Copying or being copied more than the number permitted by the contract or law.

5.  (Annex: 7.6.1995-4110/25)

Keeping the copies of a work in reserve for commercial purpose, which is known or should be known that they are copied contrarily to the provisions of this article.

6.  (Annex: 7.6.1995-4110/25)

Keeping or distributing any kind of a technical vehicle used for invalidating or removing a technical equipment without permission which is mainly applied for protecting a computer program, for commercial purposes.

Persons shall be condemned to imprisonment of three months to one year and to heavy fine of 300 million liras to 600 million liras.

II-Offender

Article 74:

In case the offences stated within the articles 71,72,73 are committed by the representative or the employees of an establishment during the fulfillment of their obligations; the owner of the establishment or the manager or the person managing the establishment in act with a name and qualification, not preventing the offence while being committed, shall be fined as the offender.

In case the punishable act is commanded by the owner the manager of the establishment or by the person managing the establishment in act, these persons shall be fined as the offenders; in case it is commanded by the representatives or employees these persons shall be fined as the helpers.

The person assigning a reciprocal or an unrequited occasion for displaying a work that is known that its presentation to public is contrary to the law, or the person having a duty or charge in the presentation of this type of work, shall be fined as the helper.

In case one of the offences stated in the articles 71,72,73 are committed during the completion of the matter of a legal person, the legal person with the other offenders shall jointly be responsible for the expenses and fine.

The provisions of the articles 64,65,66 and 67 of the Criminal Code are reserved.

III-Prosecution

Article 75:

Prosecution resulting from the offences stated in the articles 71,72 and 73 depends on the complaint.

(Amendment: 1.11.1983-2936/art. 14)

The persons who shall be exposed to complaint other than the transgressed are these stated below:

1) The Ministries of Education and Culture or the Vocation Union which the transgressed is connected with, in case of any contrary acts against the obligation of proving the source in the paragraph number four of the article 71.

2) The Ministry of Culture, The General Directorate of Press and Information and associations representing the Turkish press in case of contrary acts against the obligation of proving the source as per article 36 within the conditions stated in the paragraph number four of article 71.

Trails of fine shall be opened within one year pursuant to its actual performing.

Duties related to the comprehension of this law are the urgent duties included in the article 423 of Law of Criminal procedure.

C) Various Provisions

I-  Duty

Article 76:

Court of first instance shall be the competent authority in charge without regarding to the quantity of the subject claimed or without regarding the grade of the penalty stated in the law in case of trials resulting from the legal relations arranged by this law.

The article 358 of Law of Criminal Procedure is implemented in case a personal suit is brought.

The document shall be transferred by one's own accord to the Civil Court for the solutions of the matters in case of acquittal, if personal right is demanded within the trial of fine.

II- Precautionary Measures

Article 77:

For preventing an important damage or an unexpected danger or preventing a fait accompli or in case the asserted claims are deemed as necessary and strongly possible, the court shall be entitled to command the counter part to continue or not to continue the work before or after the suit is brought against, or shall be entitled to decide on the temporary forcible seizure of the copied samples of a work or the copying equipment, used for production such as moulds as precautionary measure; pursuant to the demand of the transgressed person whose rights given by this law shall be violated and threatened. Oppositions against the command shall have penal results as per article 343 of Law of Execution and Bankruptcy.

III- Declaration of the Provision

Article 78:

The rightful party shall be entitled to demand the whole or the summary of the certain resolution to be declared in newspapers and etc., expenses belonging to the counter part, in case the rightful party has a valid reason or a benefit other than the situation stated in the second paragraph of article 67.

IV-  Legal Proceedings, Confiscation and Annihilation)

Article 79:

For the legal proceedings, confiscation and annihilation of copied samples whose production and distribution shall be punishable and of the equipment used for copying these such as moulds, the provisions of article 36 of Criminal Law and articles 392,393,394 of Law of Criminal Procedure shall be implemented.

Different Provisions:

A) Neighboring rights and prevention of transgression

I-  The neighboring rights of the owner of the work of art

Article 80:

(Amendment: 7.6.1995-4110/2b)

Performer artists originally performing and interpreting intellectual works and works of art, the producers of sound-carriers determining the performance or sounds for the first time and Establishments of Radio and TV shall have the rights neighboring the rights of the owner on the condition of not harming the moral and financial rights of the owner of the work.

The performer artist shall exclusively have the right of benefit and his written permission is necessary for determining a performer artist's performance, copying this performance, renting it out, broadcasting it with any wired or wireless means or its presentation. The performer artist shall transfer these rights to the producer with a proper substitute by a contract.

In case the presentation is performed by an orchestra, chorus or a theatre group, only the chief's permission shall be adequate.

In case the artist or group is hired for singing, performing or presentation by an establishment, the permission of the enterprise shall be essential.

Without the written permission of the Establishments of Radio and television, no one or no establishment shall copy a part or whole of the broadcast work, shall broadcast them again by wired or wireless means, shall present them in public places with entry-fees.

The written permission of the possessor of the neighboring rights shall be essential for the conditions stated blow:

1. The performance or the public presentation of the intellectual works and works of art aiming the public order, education and instruction, scientific researches or interview and without aiming profit,

2. Copying the intellectual works and works of art and Radio Television programs for broadcasting and for personal usage without aiming profit,

3. Temporary fixation made for own broadcastings of the Establishments of Radio and TV with their own possibilities,

4. The situations stated in the articles 30, 32, 34, 35, 43 and 46 of this law,

However this application shall not harm the legitimate benefits of the owner of the right without a rightful reason or shall not be contrary to benefiting from the work normally,

Artists, chiefs and soloists of the chorus or orchestras, the actors who are chiefs or have the leading roles in theatre groups shall demand their names to be emphasized in the means used for picture and sound transfer.

As the owners of the works the owners of the neighboring rights shall benefit from the rights of the annulment of transgression, the prohibition of transgression and the right of Action for damages.

Without having the written permission stated in this article the person transgressing the rights of the owner of the neighboring rights, shall be condemned to the imprisonment from three months to one year, or to a heavy fine of 300 millions TL to 600 millions TL.

II- Prevention of Transgression of Intellectual Rights

Article 81:

(Amendment: 7.6.1995 – 4110/27)

For a work, to be copied, the owner of the work of art or the owner of the right shall be proved, with the notary certified contract, conforming with article 52 and certificate of qualification, to the printing house, workshop and to the recording Establishment. Person, copying the work, shall fill the order form and the letter of consignment that are certified by the Ministry of Finance and shall prove these with the invoices.

Stamping the bands, to be taken from the Ministry of Culture, on the non-periodical publications shall be obligatory.

For the bands to be taken, presenting the documents indicated in the 1st paragraph shall be essential. In fifteen days pursuant to this presentation, bands shall be given without any other procedure. The essentials and methods, related to the acceptance of the documents, will be determined by the regulations prepared by the Ministry of Culture.

In case of the usage of the financial and neighboring rights, without permission, by the person except the owners of the intellectual works and works of art and the owners of the rights; the office of the chief Public Prosecutor shall demand from the authorized judge, the seizure of the irregularly multiplied or presented copies of the work and sealing of the technical equipment used for this purpose, pursuant to the application, of the owners of Professional Associations, related to the place where transgression is made or where its results took place.

In case of the situations whose delay shall be inconvenient the chief Public Prosecutor, on his own accord, shall decide on seizure and sealing, to be presented to the approval of the authorized judge, within 3 days. The owner of the rights shall apply to the office the Chief Public Prosecutor within six months pursuant to their being informed of transgression and the offender with the condition of the offence's being in the duration of prescription, with the documents proving their rights. The provisions of the Law Procedure of Witnessed Crimes numbered 3005 are applied relating with this offence.

The person copying the works with the equipment and methods used for repeating signs, pictures and sounds; without having the written permission stated in this article and without having the bands; shall be condemned to imprisonment of three months to one year or to a heavy fine of 300 millions TL to 600 millions TL.

III. The content of neighboring rights and their duration:

Article 82:

(Amendment: 7.6.1995 – 4110/28)

Provisions of this law related to the performer artists;

These are applied for the performer artists:

1.  Being a citizen of Republic of Turkey,

2.  As well as being a citizen of the Republic of Turkey, the performances shall be performed in the Republic of Turkey, added within the sound-carriers that the provisions of this law requires and shall not be determined by a sound carrier and broadcast by Radio – Television broadcasts for which the provisions of this law shall be applied,

The provisions of this law related to the sound-carriers;

1. Whose producers shall be the citizens of Republic of Turkey,

2. Which shall exist within the borders of the Republic of Turkey.

The provisions of this law related to the broadcasts of Radio-Televisions

These shall be deemed appropriate for the Radio-Television programs;

1. Whose centers shall exist within the borders of the Republic of Turkey

2. Which shall be broadcast with the reflectors within the borders of the Republic of Turkey.

The provisions of B law related to the neighboring rights shall be applied to the performer artists, producers and Establishments of Radio-Television who shall be protected by the provisions of an International Agreement in which the Republic of Turkey shall take part.

The rights of the performer artists shall continue for 70 years beginning from the date of publishing the demonstration of the performance;

In case the performance is not published, this duration starts with its first publicity.

The rights of the producers shall continue for 70 years beginning from the date of the first publication of the sound carriers.

The rights of Establishments of Radio-Television shall continue for 70 years beginning from the date of programs first broadcast.

B) Unfair Competition

I-  Name and characteristics

Article 83:

The forms of the copies of a work copied with the name characteristics shall not be used in another work or in its copies, which may cause ambiguity.

The provision of the 1st paragraph shall not be applied for generally used names, characteristics and outer figures having no distinctive quality.

Application of this article shall not depend on the verification of the conditions stated in the first, second and third parts.

The provision related to the Periodical names indicated in the article 14 of the Press Law shall be reserved.

The person acting contrarily to the provision of the first paragraph shall be applied to the provisions concerning unjust competition, even though the transgressor is not the dealer.

II. Sign, picture and sound

Article: 84

The person fixing a sign, picture and sound on an equipment used transferring these, or rightfully copying and distributing these for commercial purposes, shall prohibit the distribution or publishing of the same sign, picture and sound by a third person using the same means.

The person acting contrarily to the provision of the first paragraph shall be applied the provisions concerning unfair competition, even though the transgressor is not the dealer.

The provision of this law shall also be applied for any type of photographs not having the characteristics of a work, and shall be applied for pictures and cinema works established with the same methods.

C) Letters:

Article 85:

Letters, remembrances and writings similar to these shall not be published without the approbation of the writers or of the person stated in the first paragraph of article 19; in case the writers are dead, even though these writings do not have the characteristics of a work, provided that 10 years have passed after the writer's death.

Letters shall not be published without the written permission of the second person or of the person stated in the first paragraph of the article nineteen, in case the second person is dead, other than the condition stated in the first paragraph, provided that 10 years passed after the death of the second person. The provisions of article 49 of law of obligations and articles 197 and 199 of criminal code shall be applied for the person acting contrarily to the provisions stated above.

In case of acceptable publishing according to the provisions of the first and second paragraphs, the provision of article 24 of the civil code is reserved.

D) Pictures and Portraits

I)  In General

Article 86:

Pictures and portraits, even though they are not having the characteristics of a work, shall not be resented to public for exhibition or for another reason without approbation of the portrayed person or of the person stated in the first paragraph of Article 19, if the portrayed person is dead, provided that after 10 years passed the death of the portrayed person.

Having the approbation, stated in the first paragraph, is not required for the followings:

1. The pictures of the person having o role in the political and social life of the country.

2. The pictures of the portrayed persons showing their participation in parades, formal celebrations or general meetings.

3. Pictures concerning the daily events for news of radio and films shall not be necessary.

Person acting contrarily to the provision of the first paragraph shall be applied the provisions of the article 49 of Law of Obligations and articles 197 and 199 of the Turkish Criminal Code.

In case of acceptable publishing according to the provisions of the first and second paragraphs, the provision of article 24 of Civil Code is reserved.

II- Exceptions

Article 87:

In case there is not a contrary decision, a photograph shall be taken by the person ordering or by the person portrayed or his inheritors, from the picture or a portrait of the person who shall order them to be made.

This provision shall not be valid for the printed portraits or pictures. In case the person stated in the first paragraph shall not provide or have important difficulties in providing these kind of photographs, their photographs can be taken.

E) Controversies against the law

Article 88:

The provisions of this law shall be applied for:

1. The works presented to public for the first time in Turkey and all of the works, existing in Turkey that have not been presented to public yet and all the letters and pictures existing in Turkey, without regarding the citizenship of the owner of the work.

2. The works of Turkish citizens whose works have not been presented to public yet or all of their works that shall be presented to public out of Turkey for the first time.

3. All of the works of foreigners that have not been presented to public or that are presented to public out of Turkey for the first time, provided that there are appropriate provisions within an international agreement in which Turkey takes a part.

The Council of Ministers shall decide on making exceptions as per the first and third paragraphs of this law, in case the country of the owner of the work shall sufficiently protect the rights of the Turkish owner of the work or in case the country does not answer the exceptions or evaluations according to their provisions, concerning the foreign owners of a work.

Additional Article 1- (is the provisions of article 18 of 1.11.1983 – 2936 number law and transformed as additional article and numbered for joint liability)

Rules and regulations in accordance with this law shall be prepared and published in the official gazette within six months.

Additional Article 2- (7.6.1995 – 4110/29)

After this law come into force, related to the protection periods of neighboring rights, cinema works, computer programs and data bases; the work-ups and products of these publicized works shall be applied.

Additional Article 3 – (7.6.1995 – 4110/30)

The essentials related to the applications of neighboring rights should be determined with the regulations that shall be offered within six months after the law come into force.

F) Temporary Provisions

I-  Provisions of Transfer

1.  Generally

Provisional Article 1:

In case there is no contrary decision, provisions of this article shall be applied for the works that have been presented to public for the first time or for the works that have entered into the register before the regulations. The work's or its product's being included within the Law of Copyrights dated May 8 1326, or not, shall not affect the situation.

The protection periods, concerning the works being publicized before this law cone into force, shall be estimated according to this law. With the terms that shall be used in legislation and contracts such as copyright, literary possession, possession of fine arts and etc, the rights and competence given by this law in similar situations shall be understood.

In case a part or the whole of the rights and their usage is transferred to another person before this law comes into force, these rights shall not be considered as transferred with the new and extensive rights and competence.

The same provision shall also be applied for the works and its products having a longer period of protection than the previous or for the works and its products that the previous law did not protect.

2.  Protection of the vested interest.

Provisional Article 2:

In case the periods in the previous law are longer, these periods take place of the works published before the publication of this law.

In case a rightful interpretation or a work up of a work was published before the publication of this law, the rights and competence acquired by the person who interpreted or worked up shall not be harmed.

The publication of the interpretation, which shall be acceptable in the provisions of the previous law and which shall be abolished by this law, shall be completed in case the publishing began before the date of this law come into force. It should be stated that the duration of the publishing shall not exceed one year. The same provision shall be applied to the interpretations of works to be presented in public places by this kind of representation establishments. Copying shall be completed or the multiplied copies shall be published in case the copying has been started on the date of the publication of this law, despite the copying was acceptable within the provisions of the previous law is abolished by this law.

The publishing of the copies, present on the date which this law come into force, and was acceptable in the provision of the previous law, can be continued.

The same provision shall be applied to the equipment used for sign, picture and sing transfer and the means such as moulds and etc., used for copying the fine art works.

The person demanding the authority that can be acquired by this law, shall be obliged to inform and to have sealed the copies and equipment by the authorized office within 6 months, pursuant to this law's coming into effect. Details shall be determined by a regulation if necessary.

Provisional Article 3:

(Annex: 1.11.1983 – 2936/17)

The president and members of obligatory subdivisions shall be determined by the decision of the Ministry of Culture until the Federation of Professional Organizations completes the number of the members as stated in the regulation.

Provisional Article 4:

(Annex: 1.11.1983 – 2639/17)

The decree dated 15.3.1980 and numbered 8/423 of the Council of Ministers offered as per article 43 of 5846 number law of intellectual works and works of art and the price list that shall be offered in this law, shall be applied from the beginning of its validity on 15.3.1980 until 31.12.1985.

According to the price list to be offered by the council of ministers, the payments of the works transferred to the professional organization with the certificate of authority, shall be made to the related Professional Organization in order to divide them among the owners of the right, and in other situations the payment is made directly to the owners of the financial rights.

Eliminating their own shares on the payroll given by the Turkish Radio and Television Company, the Professional Organizations shall pay the remaining to the owners of the rights within 2 years pursuant to their being paid.

The prices that shall not be demanded by the members within 2 years shall be on o private account to be opened on behalf of the Ministry of Culture.

Provisional Article 5:

(Annex: 6.7.1995.4110/31)

The professional organizations founded before this law's coming into effect shall be transferred to new professional organizations under the provision of Ministry of Culture and in line with the related provisions of the law within one year and shall form their new subdivisions by a plenary session within this duration. The Professional Organizations not confirming with the provisions of the first paragraph shall be considered automatically disintegrated.

II Annulled Provisions

Article 89:

The provisions of Copyrights Law dated May, 8, 1326 that are contrary and the provisions of other laws that are contrary to the provisions of this law are annulled.

G) The Last Provisions

I-  Coming Into Force of the Law

Article 90:

The provisions of articles 42 and 43 of this law shall come into effect beginning from its date of publication and other provisions of this law shall come into force on January 1, 1952

II- The office charged with the execution of the law

Article 91:

The provisions of this law shall be carried out by the Council of Ministers.



Note: This is the english version of code, original text in Turkish: 5846 sayılı Fikir ve Sanat Eserleri Kanunu :
http://www.hukuki.net/hukuk/index.php?article=103 or http://www.hukuki.net/kanun/5846.13.frameset.asp
Not: Fikir ve Sanat Eserleri kanununun ingilizce tercümesi yukarıdadır. Türkçe metinler yukarıdaki linklerdedir.
#107
TURKISH TAX LAW / Turkish Taxation System
June 04, 2007, 10:06:50 PM
TURKISH TAXATION SYSTEM

TURKISH DIRECT TAXATION SYSTEM
April 2007

Turkish direct taxation system consists of two main taxes; income tax and corporate tax. An individual is subject to the income tax on his income and earnings, in contrast to a company which is subject to corporate tax on its income and earnings. The rules of taxation for individual income and earnings are provided in the Income Tax Law 1960 (ITL). Likewise, the rules concerning the taxation of corporations are contained in the Corporation Tax Law 1949 (CTL). Despite the fact that each is governed by a different legislation, many rules and provisions of the Income Tax Law also apply to corporations, especially, in terms of income elements and determination of net income.

INCOME TAX:

Taxable Income:
The income tax is levied on the income of individuals. The term individuals mean natural persons. In the application of income tax, partnerships are not deemed to be separate entities and each partner is taxed individually on their share of profit. An individual's income may consist of one or more income elements listed below:

- Business profits,
- Agricultural profits,
- Salaries and wages,
- Income from independent personal services
- Income from immovable property and rights (rental income)
- Income from movable property (income from capital investment)
- Other income and earnings without considering the source of income

Tax Liability:
In general residency criterion is employed in determining tax liability for individuals. This criterion requires that an individual who has his place of residence in Turkey is liable to pay tax for his worldwide income (unlimited liability). Any person who remains in Turkey more than six months in a calendar year is assumed as a resident of Turkey. However, foreigners who stay in Turkey for six months or more for a specific job or business or particular purposes which are specified in the ITL are not treated as resident and therefore, unlimited tax liability does not apply to them.
In addition to residency criterion, within a limited scope, nationality criterion also applies regardless of their residency status, Turkish citizens who live abroad and work for government or a governmental institution or a company whose headquarter is in Turkey, are considered as unlimited liable taxpayers. Accordingly, they are subject to the income tax on their worldwide income.
Non-residents are only liable to pay tax on their income derived from the sources in Turkey (limited liability). For tax purposes, it is especially important to determine in what circumstances income is deemed to be derived in Turkey. The provisions of Article 7 of the Income Tax Law deal with this issue. In the following circumstances, the income is assumed to be derived in Turkey.

Business profit: A person must have a permanent establishment or permanent representative in Turkey and income must result from business carried out in this permanent establishment or through such representatives.

Agricultural income: Agricultural activities generating income must take place in Turkey.

Wages and Salaries:
- Services must be rendered or accounted for in Turkey.
- Fees, allocations, dividends and the like paid to the chairmen, directors, auditors and
liquidators of the establishment situated in Turkey must be accounted for in Turkey.

Income from Independent Personal Services: Independent personal services must be performed or accounted for in Turkey.

Income from Immovable Property:
- Immovable must be in Turkey;
- Rights considered as immovable must be used or accounted for in Turkey.

Income from Movable Capital investment: Investment of the capital must be in Turkey.

Other Income and Earnings: The activities or transactions generating for other income,
specified in the Income Tax  Act, must be performed or accounted for in Turkey.

The term accounted for used above to clarify tax liability of the non-residents means that a payment is to be made in Turkey, or if the payment is made abroad, it is to be recorded in the books in Turkey.

Determination of Net Income:

Business Profit:
Business profit is defined as profit arising from commercial or industrial activities. Although this definition is very comprehensive and includes all types of commercial and industrial activities, the ITL excludes some activities from the contents of business profits. Generally, activities performed by tradesmen and artisans who do not have permanent establishments are not assumed as commercial and industrial activities and are exempt from income tax.
Furthermore, in order to tax income resulting from commercial and industrial activities there has to be continuity in performing these activities. In other words, incidental activities in that nature are not treated as commercial or industrial activities and therefore, the Income Tax Law deals with these activities as the other income and earnings.
The ITL does not list each commercial and industrial activity and only refers to the Turkish Commercial Law for the scope of these terms. Yet several activities are listed namely for clarification in Article 37. These are as follows:
- The operation mines, stone and time quarries, extraction of sand and pebbles operations of brick and tile kilns;
- Stock brokerage;
- Operating of private schools, hospitals and similar places;
- Regular operations of sale purchase and construction of real estate;
- Purchase and sale of securities on someone's behalf and on a continued basis;
- Fully or partly sale of land which has been obtained by purchase or barter and subdivided within five years of its date of purchase and sold during this period or in subsequent years;
-Earnings from dental prosthesis.

Basically, the taxable income of a business enterprise is the difference between its net assets at the beginning and at the end of a calendar year.
Two method are used to compute business profits: Lump-sum basis and actual basis in the former method, the Income Tax Law specifies estimated business profits for taxpayers who are qualified for such treatment according to the relevant provisions of the Law. The main assumption is that those taxpayers specified by the Law have difficulty to keep accounting books and to determine then income on the actual basis. Therefore, their income taxes are assessed on their estimated profits determined by the Law.

In the latter method business profits is determined on the actual basis: Taxpayers are required to keep accounting books to record their actual revenues and expenses which occur within the calendar year. In general, business related expenses paid or accrued related to business are deducted from revenues:

Expenses to be deducted:
In order to determine net amount of business profits on the actual basis, the following expenses may be deducted from revenues:

- general expenses made for earning and maintaining business profit;
- food and boarding expenses provided for employees at the place of business or in its annexes;
- expenses for medical treatment and medicine;
- insurance and pension premiums;
- clothing expenses paid for employees;
- losses, damages, and indemnities paid based upon written agreements, juridical decrees, or by order of law;
- expenses for travel and lodging relevant to the business;
- expenses for vehicles which are part of the enterprise and used in the business;
- taxes in kind such as building, and consumption, stamp and municipal taxes and fees and charges, related to the business;
- depreciations set aside according to the provisions of the Tax Procedure Law;
- payments to the unions;

Payments, which are not accepted as expenses:
Those payments listed below are not considered as deductible expenses;

- funds withdrawn from the enterprise by the owner or by his spouse or children, or
other assets in kind taken by them;
- monthly salaries, wages, bonuses, commissions and compensation paid to the owner of the enterprise, to his spouse, or his minor children;
- interest on the capital invested by the owner of the enterprise;
- interest based on the current account of the owner of the enterprise, his spouse, his minor children including interests on all form of receivables;
- all fines and tax penalties as well as indemnities arising from unlawful actions. Indemnities incurred as penalty clauses of contracts shall not be considered indemnities of a punitive nature;
- % 0 per cent of the advertising expenses for all kind of alcohol and alcoholic beverages, tobacco and tobacco products (current rate has been reduced to 0 percent by a Governmental Decree).



Agricultural lncome:
Income derived from agricultural activities is also subject to the income tax. The term agricultural activity means any activity performed in land, sea, lakes and rivers in forms of cultivating, planting, breeding, fishing, hunting and etc. For tax purposes, persons who engaged in such activities are referred to farmers.
Small farmers are exempt from tax if a farmers gross revenue or operational size of his farming enterprise is less than the amount specified by the Income Tax Law, then he is accepted as a small farmer for the application of income tax and exempt from the income tax.
The farmers who are not exempt from the tax fall into two categories in determining their agricultural income. The income of farmers, whose annual proceeds or yields are less than the amount specified by the Council of Ministers for each year, is determined on a lump-sum basis. In this method, only the gross revenues of farmers are calculated on the actual basis. While expenses are determined simply by applying an estimated expense rate to the gross revenues. On the actual basis, both revenues and expenses are computed in their real amounts. Therefore, farmers need to keep accounting books to record their revenues and expenses accrued in the relevant year.
Gross revenue arising from agricultural activities consists of the following elements:

- sales revenues earned from selling every kinds of agricultural products produced,
purchased or obtained in other ways including the products remained from the previous years,
- proceeds received in return of using agricultural machinery and equipment in the agricultural works of other farmers.
- sales revenues derived from the selling of items expensed previously,
-            insurance compensations received for the products damaged before or after they were produced.
-           revenue arising from the selling of the fixed assets (except immovable used in agricultural activities).
The Tax Procedure Law specifies the rates that will be applied to gross revenue in determining the amount of the estimated expenses on the lump-sum basis. Thus, 80 per-cent of gross revenue is accepted as the amount of expenses in determining net income resulted from the sales of animals, animals' products and fishing and hunting products. This rate has been laid down as 70 per-cent for other agricultural products.
On the actual basis, the following expenses are deducted from the gross revenue to reach taxable income for the year.

- expenditures made for obtaining seed, fertilizers, seedling plants, animal feeds and similar materials;
- expenditures made for purchasing animals, agricultural products and other materials which are acquired for the purpose of resale;
- salaries and wages paid to the employees;
- operation and maintenance expenses of agricultural machinery; equipment, and vehicles;
- depreciation expenses;
- rents and fees paid for machinery and equipment,
- interest injured for loans received and used for enterprise,
- general expenses made for earning and indemnities paid based upon written agreements, juridical decrees, or by order of law;
-losses injured in the selling of fixed assets (except immovable used in agricultural activities) which are part of the enterprise;
-full depreciation expenses and half of other expenses of the vehicles which are part of the enterprise and also used for personal and family needs.

Salaries and Wages :

Income derived from dependent personal services is subject to the income tax. This income comprises such income from all kinds of employment in both public and private sector as salaries and wages, as well as associated supplementary income such as allowances, bonuses, anniversary gifts, gratuities, commissions, premiums, compensations and other wage and salary related remunerations including benefits in kind at market value.
In determining taxable amount of salaries and wages the following expenditures are allowed to be deducted from gross amount:
- Legal deduction made according to various laws or regulations,
- Payments made for pensions,
- Payments made for various insurances,
- Payments made for labor union membership,

Income from Independent Professional Services :
The term independent professional services means any activity performed by a person who is self-employed, and based on professional and scientific expertise rather than capital, income from such activities is subject to the income tax.
The term includes services given by such independent professionals as lawyers, accountants, doctors, consultants and engineers.
Revenues received from independent professional services within a year as well as expenses paid are recorded on a simple accounting book. In general, all expenses related to independent professional services can be deducted from revenues. But, the scope of those expenses are narrower than those specified for the commercial and business and business activities. The following expenses are allowed to be deducted from the gross revenue in reaching the profit from independent professional services:

- rents paid for the leased premises in which  the professional services are carried out.

- overhead expenses;
- expenses paid for illumination, heating, phone, wages and salaries of bureau employees, and other office overheads;
- vocational and advertisement taxes as well as taxes in kind, including excises and fees paid occupational purposes;
- expenses for occupational books and periodicals;
- payments made for membership of occupational associations;
- traveling and lodging expenses regarding the profession carried on;
- expenses made for tools, equipment, and other materials necessary to perform the profession;
- depreciation expenses for the fixed assets in performing the profession;
- retirement payments;
- losses, damages, and indemnities paid based upon written agreements, juridical decrees, or by order of law.

Income from Immovable Property :
Immovable property means real property which includes land buildings, and permanent leasehold rights. Ships, boats, aircraft and other types of transportation vehicles are also regarded as immovable property in the application of the Income Tax Law. Income from immovable property comprises:

- rental income arising from the lease land, buildings (furnished or unfurnished), and the rights to work mineral deposits, sources and other natural sources including mines, sand and gravel quarries, and property accessory to immovable property; - rental income from fishing place of every kind;
- rental income from property to immovable property which may be subject to independent leasing;
- rental income from the right to use any copyright of literary, artistic or scientific work, any patent, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience or for the use of  or the right to use, industrial, commercial or scientific equipment;
-           rental income from the lease of ships, boats, aircraft and other transportation vehicles.
In computing net income from immovable property, costs related to maintenance, management, renovation and running, and depreciation may be deducted from the gross income on the actual basis, it is also allowed to make a lump-sum deduction instead of actual costs, except for the income from the lease of the rights mentioned above. In such cases, lump-sum deduction is 25 per-cent of the rental income.


Income from Movable Property :
Income from movable property means any income such as interest, dividend, rent and the like derived from capital in cash or capital in kind. (Income from business activities, agricultural activities and independent personal services is not considered as income from movable property.)
However, such capital income is not considered as income from movable property, should they are earned (gained) through business, agricultural or independent professional activities.
Regardless of their sources, the following earnings are deemed to be income from movable property:

- dividends from stocks of every kind including joussance shares, founder's shares and interests and other remunerations paid to the stockholders in the preparatory stage of the corporation and earning from the securities issued by investment funds and investment trusts;
- earnings from participation shares including the shares of limited companies, cooperatives and joint ventures;
- dividends paid to the chairmen and the members of the board of directors;
- after tax income of the corporations which are subject to annual declaration or special declaration;
- interests of every kind from bonds, treasury bonds, and earning from the securities issued by the Mass Housing Administration (MHA) and the Public Participation Administration (PPA);
- interest from debt-claims of every kind particularly interest from banks and other financial institutions;
- profits from selling coupons of stocks and bonds before their maturity;
- income from selling of dividends not accrued yet to the owners of the shares;
- dividends paid to those who lend money without interest and dividends paid in return of profit-Ioss participation notes and profit-Ioss participation accounts;
- tax claims, calculated one third of dividends received by the stockholders;
- income from repurchasing agreement on bonds and securities issued by the MHA and the PPA.
In determining net income from movable property, costs related to and allowed to be deducted from gross income include insurance costs, collection costs, and taxes and other levies, excluding income tax, paid for securities.
The mentioned elements are included in business profit when they are connected to the business activity of the recipient. In such case, this income is treated as business profit and become subject to the rules described earlier related to the rules described earlier related to the business profit.

Other Income and Earning :
Capital gains non-recurring is dealt with by the Income Tax Law under the heading "Other Income and Earnings". Capital gains specified in the ITL are as follows:

- earning exceeding certain amount TL from the selling of securities before or within one year after acquisition, except those acquired free of charge;
- income exceeding certain amount TL from the selling of intellectual rights which are treated as immovable property for tax purposes;
- income from the selling of participation rights and shares;
- profits from the wholly or partly alienation of an enterprise which ceased its operations,
- profits derived from the alienation of land, buildings, the rights to operate mineral deposits, sources and other natural sources, fishing place of every kind, the rights registered as immovable property, and ships, boats, aircraft and other transportation vehicles, within four years after their acquisition.
Net amount of capital gains is determined by deducting acquisition costs and the costs incurred to the alienation of the capital assets from the proceeds received in return of the alienation.

Non-recurring income comprises:

- income derived from the business activities and independent professional services
performed on occasion;
- proceeds received not to start or to stop a business activity, agricultural activity or independent professional  service, or in return for not bidding for contracts;
- proceeds received to transfer leasehold rights or to evacuate leased immovable property;
- income derived by the taxpayers from their previous operations;
-income derived by the limited liable taxpayers from transportation activities performed on occasion.

CORPORATE TAX:

Taxable Income:
The corporate tax is levied on the income and earning derived by corporations and corporate bodies. The income elements by Corporate Tax Law are the same as those covered in the Income Tax Law. In other words, the Corporate Tax Law sets provisions and rules applicable to the income resulted from the activities of corporations and corporate bodies, whereas the income Tax Law deals with the income derived by individuals. Corporations and corporate bodies specified by the Law as taxpayers in respect to the corporate tax are as follows:

- Capital companies and similar foreign companies;
- Cooperatives;
- Public enterprises;
- Enterprises owned by foundations societies and associations;
- Joint ventures.

Tax Liabilities:
According to the Corporate Tax Law, those legal entities covered by the law, which their legal head office situated in Turkey, or the place of effective management in Turkey are taxed on their world-wide income (unlimited liability). By specifying two criteria the law intends to prevent any problem, which may arises in determining tax liability. The term legal head office, as used in the context of the Corporate Tax Law, means the office specified in the written agreements of the mentioned entities. Therefore, it is not difficult to as certain where the legal head office of a company is located. However, the place of effective management, which is defined as the place in which the business activities are concentrated and supervised, is not easy to determine in some cases.
As may be expected, the Law defines the term limited tax liability quite parallel to term unlimited tax liability, as the liability requiring to tax only the income derived in Turkey, provided that both legal head office and the place of effective management are abroad.

Determination of Net Taxable Income:
In essence, the provisions of the income Tax Law concerning the determination of business profit also applies to the procedure required in determining corporate income. Basically, net corporate income is defined as the difference between the net worth of assets owned at the beginning and at the end of the fiscal year. In addition to the expenses mentioned in article 40 of Income Tax Code allowed to be deducted from revenues, the followings may also be deducted regarding to the determination of business profit, by corporations:

- expenses related to the issuance of stocks and shares;
- initial organization and establishment expenses;
- expenses incurred for general board meeting as well as expenses made for mergers dissolutions, and liquidations;
- in case of insurance companies, technical reserves required for the insurance contracts still valid at date of inventory;
- profits shares accrued to active partners of partnerships in commendams limited by shares;
- profit shares accrued to partners by participation banks for participation accounts;
- research and development deductions calculated as %40 of new technology and know-how research expenses realized within business.

In determining net corporate income, the following deductions are not allowed:

- interests paid or accrued on the basis of equity;
- interest, exchange difference and other costs paid or accrued on the basis of disguised capital;
- disguised earning distributed by transfer pricing;
- any kind of reserves;
- the corporate tax, fines, tax penalties and late payment penalties and interest.;
- leased or registered motor vehicles' depreciation and other expenses not related with business activities;

Corporate Tax Return:
Like income tax, the corporate tax is also assessed on the base declared through tax returns filled annually by taxpayers. Tax returns contain the results of related taxation period. In principle, every taxpayer is required to file only one single tax return, even if he has derived the income through different business places or branches and those places and branches have their own accounting and allocated capital.
The corporate tax return is filled until the 25th day evening of the fourth month of the year following the month in which the fiscal year ends and the assessed taxes are paid until the end of that month. However, if a limited liable taxpayer leaves the country for sure the corporate tax return has to be submitted to the authorized tax office in the 15 days preceding. In such case, taxes are paid in the same period of time as forth for the declaration.
            If the income earned by the foreign companies which are subject to the limited liability in respect to the corporate tax, consists of capital gains and non-recurring income discussed in the preceding sections (except for income earned from sale and transfer of intangible rights like license, know-how, and royalty), then the income is declared to the authorized tax offices those taxpayers (or the persons acting on behalf of them) in the fifteen days after the income has been earned. This procedure is called "special declaration".
            If there is no presence in Turkey, withholding tax will generally be charged on income earned; for example income earned from sale and transfer of intangible rights like license, know-how, and royalty, income from movable and immovable property and income from independent professional services provided in Turkey. However, if there is an avoidance of double taxation treaty, reduced rates of withholding tax may apply.



Tax Rates:

            Corporate income tax is applied at 20 % rate on the corporate earnings.

            Taxpayers (only for income from commercial activities and agriculture in  limited tax liability cases) pay provisional tax at the rate of corporate tax, these payments are deducted from corporate tax of current period. 



TURKISH INDIRECT TAXATION SYSTEM



In Turkey, there are several indirect taxes  but most important indirect tax is V.A.T.

The beginning of the studies on Value Added Tax (VAT) in Turkey goes back to 1970. In 1974, a draft VAT law, which was the result of studies of a technical group, was prepared. The subject (VAT)was discussed by different levels of public opinion and some project games were organized to test the drafts with the volunteer enterprises. After the appreciation of the results of these discussion and games, seven law drafts were prepared between 1974-1984. The 8th draft was enacted on November 2nd , 1984 and entered into force on January 1st , 1985. By the VAT Law, eight indirect taxes on consumption were abolished.

The Turkish Tax System levies value added tax on the supply and the importation of goods and services. The Turkish name for Value Added Tax is Katma Değer Vergisi, abbreviated to KDV.

            Liability for VAT arises;

(a) when a person or entity performs commercial, industrial, agricultural or independent professional activities within Turkey,
(b) when goods or services are imported into Turkey.
           
            VAT is levied at each stage of the production and the distribution process. Although liability for the tax falls on the person who supplies or imports goods or services, the real burden of VAT is borne by the final consumer. This result is achieved by a tax-credit method where the computation of the VAT liability is based on the difference between the VAT liability of a person on his sales (output VAT) and the amount of VAT he has already paid on his purchases (input VAT).
           
            The Turkish VAT system employs multiple rates and the Council of Ministers is authorized to change the VAT rates within certain limits.

VAT TAXPAYERS

General

VAT taxpayers are defined in the VAT Law as those engaged in taxable transactions, irrespective of their legal status or nature and their position with regard to other taxes.

Taxpayers

            The following people or entities are liable to VAT:


Those supplying goods and services,

Those importing goods or services,

Those required to complete customs formalities in case of transit of goods

through Turkey,

General Directorates of the Authorized Public Lotteries, including Spor-Toto and National Lottery,

General Directorates of Postal Services (PT and Telecom) and radio and television corporations,

Organizers of horse races and other betting activities,

Organizers of shows, concerts and sporting events with the participation of professional artists and professional sportsmen,

Lessors of goods and rights stated in Article 70 of the Income Tax Law.


Goods and rights set out in Article 70 of the Income Tax Law including immovable property such as land, buildings, mines and rights which are in the nature of immovable property; and. other goods and rights.. such as all kinds of motor vehicles, machines and equipment, ships, literary, artistic and commercial copyrights, commercial or industrial know-how, patents, trademarks, licenses and similar intangible properties and rights.

VAT Responsibility and Reverse Charge VAT

In the event that the taxpayer is not resident or does not have a place of business in Turkey, a legal head office or place of management in Turkey, or in other cases deemed necessary, the Ministry of Finance is authorized to hold any one of the people involved in a taxable transaction responsible for the payment of tax.

According to the Turkish VAT law, there is a so-called reverse charge VAT mechanism, which requires the calculation of VAT by resident companies over payments to abroad. Under this mechanism, VAT is calculated and paid to the related tax office by the Turkish company or customers on behalf of the non-resident company (foreign company). On the other hand, the local company treats this VAT as input VAT and offsets it in the same month.
           

Toll-manufacturing and ready-made materials (textiles) are subject to partial withholding: Only 1/3 of the calculated VAT is paid to the seller by the purchaser. Therefore, the purchaser will be responsible for paying 2/3 of calculated VAT to the tax office directly.

Junk metal, waste paper, junk plastic material deliveries are exempted from VAT: In the case of the renouncement of the above mentioned exemption, the purchaser pays 10% of the calculated VAT to the seller. Therefore, the purchaser will be responsible for paying 90% of the calculated VAT to the tax office directly. 

      In the case of the deliveries of the petroleum products by the sellers, excluding importers, refineries, fuel oil distribution companies and fuel oil agents, only 1/10 (10%) of the Value Added Tax is paid to the seller by the purchaser. Therefore, the purchaser will be responsible for paying 9/10 (90%) of the VAT to the tax office directly.


            Taxable Base

The taxable base of a transaction is generally the total value of the consideration received, not including the VAT itself. The VAT Law deals with the taxable base under four headings, namely the taxable base on deliveries and services, on importation, on international transportation, and special types of taxable base.
In case a consideration does not exist, is unknown or is in a form other than money, the taxable base is the market value. Market value is the average price payable in the market for similar goods and services and is determined with reference to the Tax Procedural Law.


            Exclusions From the Taxable Base

The taxable base for goods delivered and services rendered does not include the VAT itself or any discounts, provided that they are at a reasonable rate with regard to commercial practice and are explicitly listed in all invoices or similar documents.

           

            Tax Rates

Standard rate:

The standard rate of VAT on taxable transactions is set at 10% in the VAT Law, but this rate was increased to 18% as of 15 May 2001.


Special rates:

For the deliveries and services mentioned in List No. I ......1% (e.g. agricultural products such as raw cotton, dried hazelnuts, supply and leasing of goods within the scope of the Finance Leasing Law)

For the deliveries and services mentioned in List No. II...........8%  (e.g. basic food stuffs, books and similar publications)

            The Credit Mechanism



VAT is collected at every stage of the production and distribution process from the initial sale by the producer to the final sale to the consumer. At each of these stages, the amount of tax payable is the difference between the total amount of tax charged on the invoices issued by the taxpayer and the total amount of tax charged on invoices issued to the taxpayer during the same period. Thus the VAT is initially computed by applying the appropriate rate of taxation to the taxable base for goods and services supplied by the taxpayer during a taxable period. This amount is then reduced by a credit for VAT previously paid on importation and on goods and services supplied to the taxpayer.
           
            Non-deductible VAT (Cost or non-deductible item or capitalized)

            In the following cases, VAT may not be credited from the VAT computed on taxable transactions.

(a) VAT on purchases of cars (which should be recorded as an expense or cost) (except for businesses related with lease or operation of cars)
(b) Missing and stolen stocks,
(c) VAT on expenses accepted as non-deductible in determining  income according to Income Tax Law and Corporate Tax Law,
(d) Input VAT on exempt deliveries listed in Article 17 of the VAT Law.



            VAT Refund

            Value Added Tax (input VAT) shown on invoices and similar documents related to the transactions which are exempt from the tax, such as:


Exportation of goods and services,

Exemption for vehicles, petroleum exploration and investments made under an investment incentive certificate (IIC),

Transit transportation,

Diplomatic exemption ,

are deducted from the Value Added Tax (output VAT) to be calculated on the transactions of the taxpayer which are subject to VAT. In the absence of transactions subject to VAT, or if the output VAT is less than the input VAT, then the input VAT which cannot be deducted is refunded to those who perform such transactions, on the basis of principles to be determined by the Ministry of Finance.
           
             
OTHER INDIRECT TAXES:


Stamp tax:

Stamp Tax applies to a wide range of documents, including but not limited to, contracts, agreements, notes payable, letters of credit and letters of guarantee, financial statements and payrolls. Stamp duty is levied as a percentage of the value stated on the document at rates ranging from 0.15% to 0.75%. The Stamp Tax Law provides that each relevant party shall be responsible for payment of the total amount of stamp tax on the agreements. Each original document is separately subject to stamp tax.


Motor vehicle tax:

            The subject of the tax is motor vehicle. Taxable event is registration of the motor vehicles in the traffic, municipality and docks.

            Taxpayers are real and legal persons who have motor vehicles that are registered to their own names in the traffic, municipality and docks register and the civilian air-vehicle register maintained by the Ministry of Transportation.

            Tax is assessed and accrued annually in the beginning of January. The motor vehicle taxes are paid in two equal installments, in January and July, every year.

            Motor vehicles are classified into four categories in terms of motor vehicle tax:
- List 1 : cars, special utility vehicles and motorcycles,
- List 2: minibuses, panel vans, motorized caravans, busses, pickups, trucks etc.
- List 3 : yacht-cutter and all sorts of motor ships
- List 4 : planes and helicopters

            The amount of Motor Vehicle Tax for land transportation vehicles is determined according to their weight, age, cylinder capacity and the fuel used and for 2006 it ranges from 36 YTL to 10.988 YTL for cars and 121 YTL to 1.647 YTL for buses, trucks and the like.

Banking and Insurance Transactions Tax (BITT):

The subject of the tax is transactions and services produced by banks, bankers and insurance companies.
            Taxpayers are banks, insurance companies and bankers.
            All transactions and services produced by banks and insurance companies. There will be the tax upon the money, which they collect under the name of interest, commission and expenditure because of the services they produced on behalf of them. Bankers' certain transactions and services produced and stated in Law are the subject of the tax. Other transactions of bankers are subject to VAT.
            Banks and insurance companies are exempt from VAT, but are subject to BITT at a rate of 5%, which is due on the gains of such companies from their transactions. The purchase of goods and services by banks and insurance companies is subject to VAT but is considered as an expense or cost for recovery purposes. Foreign exchange transactions are subject to 0.1% BITT.
            Taxation period in BITT is each month of the calendar year. Taxpayers declare their taxable transactions up to the evening of the 15th day of the following month.

Gambling Tax :

The subject of the tax is betting, lotteries and other forms of gambling. Taxpayers are composers of gambling activities and Gambling Tax is calculated by applying fixed or specific rate of tax.
Taxation period in Gambling Tax is each month of the calendar year. Taxpayers declare their taxable transactions and pay the accrued tax up to the evening of the 20th day of the following month.

Inheritance and Gift Tax:

Items acquired as gifts or through inheritance are subject to a progressive tax rate ranging from 10% to 30% and 1% to 10%, respectively, of the item's appraised value. Tax paid in a foreign country on inherited property is deducted from the taxable value of the asset. Inheritance and Gift Tax is payable in biannual installments over a period of 3 years.


Property Taxes:

Property taxes are paid each year on the tax values of land and buildings at rates varying from 0,1% to 0.3%. In the case of the sale of a property a 1% levy is paid on the sales value by both the buyer and the seller. Property tax returns are filed in every four years and annual taxes are paid in two equal installments, the first being in March, April or May and the second in November.


Communication Tax:

All types of installation, transfer and telecommunication services given by mobile phone operators are subject to 25% Special Communication Tax. The tax base for Special Communication Tax is the same as the Value Added Tax base. Mobile phone operators will declare the communication tax on the VAT returns and pay the accrued tax by the 15th day of the following month.


Education Contribution Fee:

Transactions and certain documents stated in the related law are subject to Education Contribution Fee in different amounts. Education Contribution Fee is taken as a fixed levy according to the document or the transaction. Education Contribution Fee is a temporary fee applicable until 31 December 2010.

Customs Duty :
            Goods imported from abroad are the subject of the tax. Taxable events are free circulation of goods, registration of customs declaration, and temporary importation in case of partial exemption.
Taxpayer is principally person who declare to the customs office.
            Customs duties are assessed on written declaration by the taxpayer and paid within 10 days dating from communication.

Fees:

There are different types of fees: Judgment Fees, Notary Fees, Tax Judgment Fees, Title Deed Fees, Consulate Fees, Ship and Harbor Fees, Permit of License and Certificate Fees, Traffic Fees, Passport, Visa and Ministry of Foreign Affairs. Certification Fees.



Special Consumption Tax:     

            Goods in the Lists attached to the Special Consumption Tax Law are the subject of the tax. For goods in the Lists, Special Consumption Tax is charged only once.

            There are mainly 4 different product groups that are subject to special consumption tax at different tax rates
· List I is related to petroleum products, natural gas, lubricating oil, solvents and derivatives of solvents.
· List II is related to automobiles and other vehicles, motorcycles, planes, helicopters, yachts.
· List III is related to tobacco and tobacco products, alcoholic beverages and cola.
· List IV is related to luxury products.

The Taxpayers of the Special Consumption Tax

            Taxpayers are different according to the lists. They are;
For List I; manufacturers and importers of the petroleum products,
For List II; merchants of motor vehicles, exporters for using or sellers through auction
For List III; manufacturers, exporters or sellers through auction of tobacco, alcoholic beverages and cola.

For List IV manufacturers, exporters or sellers through auction of luxury products.




This brochure provides a general overview of taxation in Turkey. No rights may be derived from it.
Revenue Administration
Department of Taxpayer Services
Ilk Adım Cad.
06450 Dikmen-ANKARA - TURKEY

Gelir Idaresi Baskanligi
Mukellef Hizmetleri Daire Baskanligi
Ilk Adım Cad.
06450 Dikmen - ANKARA - TURKEY
www.gib.gov.tr


April 2007

#108
Convention for the Protection of Human Rights and Fundamental Freedoms as amended by Protocol No. 11 with Protocol Nos. 1, 4, 6, 7, 12 and 13

The text of the Convention had been amended according to the provisions of
Protocol No. 3 (ETS No. 45), which entered into force on 21 September 1970,
of Protocol No. 5 (ETS No. 55), which entered into force on 20 December 1971
and of Protocol No. 8 (ETS No. 118), which entered into force on 1 January
1990, and comprised also the text of Protocol No. 2 (ETS No. 44) which, in
accordance with Article 5, paragraph 3 thereof, had been an integral part of the
Convention since its entry into force on 21 September 1970. All provisions
which had been amended or added by these Protocols are replaced by
Protocol No. 11 (ETS No. 155), as from the date of its entry into force on
1 November 1998. As from that date, Protocol No. 9 (ETS No. 140), which
entered into force on 1 October 1994, is repealed.
Registry of the European Court of Human Rights
September 2003
2
Convention for the Protection
of Human Rights and
Fundamental Freedoms
Rome, 4.XI.1950
The governments signatory hereto, being members of the Council of Europe,
Considering the Universal Declaration of Human Rights proclaimed by
the General Assembly of the United Nations on 10th December 1948;
Considering that this Declaration aims at securing the universal and
effective recognition and observance of the Rights therein declared;
Considering that the aim of the Council of Europe is the achievement of
greater unity between its members and that one of the methods by
which that aim is to be pursued is the maintenance and further
realisation of human rights and fundamental freedoms;
Reaffirming their profound belief in those fundamental freedoms which
are the foundation of justice and peace in the world and are best
maintained on the one hand by an effective political democracy and on
the other by a common understanding and observance of the human
rights upon which they depend;
Being resolved, as the governments of European countries which are
like-minded and have a common heritage of political traditions, ideals,
freedom and the rule of law, to take the first steps for the collective
enforcement of certain of the rights stated in the Universal Declaration,
Have agreed as follows:
Article 1 – Obligation to respect human rights
The High Contracting Parties shall secure to everyone within their
jurisdiction the rights and freedoms defined in Section I of this
Convention.
3
SECTION I – RIGHTS AND FREEDOMS
Article 2 – Right to life
1 Everyone's right to life shall be protected by law. No one shall be
deprived of his life intentionally save in the execution of a sentence of a
court following his conviction of a crime for which this penalty is provided
by law.
2 Deprivation of life shall not be regarded as inflicted in contravention of
this article when it results from the use of force which is no more than
absolutely necessary:
a in defence of any person from unlawful violence;
b in order to effect a lawful arrest or to prevent the escape of a person
lawfully detained;
c in action lawfully taken for the purpose of quelling a riot or
insurrection.
Article 3 – Prohibition of torture
No one shall be subjected to torture or to inhuman or degrading
treatment or punishment.
Article 4 – Prohibition of slavery and forced labour
1 No one shall be held in slavery or servitude.
2 No one shall be required to perform forced or compulsory labour.
3 For the purpose of this article the term “forced or compulsory labour”
shall not include:
a any work required to be done in the ordinary course of detention
imposed according to the provisions of Article 5 of this Convention or
during conditional release from such detention;
b any service of a military character or, in case of conscientious
objectors in countries where they are recognised, service exacted
instead of compulsory military service;
4
c any service exacted in case of an emergency or calamity threatening
the life or well-being of the community;
d any work or service which forms part of normal civic obligations.
Article 5 – Right to liberty and security
1 Everyone has the right to liberty and security of person. No one shall be
deprived of his liberty save in the following cases and in accordance
with a procedure prescribed by law:
a the lawful detention of a person after conviction by a competent
court;
b the lawful arrest or detention of a person for non-compliance with the
lawful order of a court or in order to secure the fulfilment of any
obligation prescribed by law;
c the lawful arrest or detention of a person effected for the purpose of
bringing him before the competent legal authority on reasonable
suspicion of having committed an offence or when it is reasonably
considered necessary to prevent his committing an offence or fleeing
after having done so;
d the detention of a minor by lawful order for the purpose of
educational supervision or his lawful detention for the purpose of
bringing him before the competent legal authority;
e the lawful detention of persons for the prevention of the spreading of
infectious diseases, of persons of unsound mind, alcoholics or drug
addicts or vagrants;
f the lawful arrest or detention of a person to prevent his effecting an
unauthorised entry into the country or of a person against whom
action is being taken with a view to deportation or extradition.
2 Everyone who is arrested shall be informed promptly, in a language
which he understands, of the reasons for his arrest and of any charge
against him.
5
3 Everyone arrested or detained in accordance with the provisions of
paragraph 1.c of this article shall be brought promptly before a judge or
other officer authorised by law to exercise judicial power and shall be
entitled to trial within a reasonable time or to release pending trial.
Release may be conditioned by guarantees to appear for trial.
4 Everyone who is deprived of his liberty by arrest or detention shall be
entitled to take proceedings by which the lawfulness of his detention
shall be decided speedily by a court and his release ordered if the
detention is not lawful.
5 Everyone who has been the victim of arrest or detention in contravention
of the provisions of this article shall have an enforceable right to
compensation.
Article 6 – Right to a fair trial
1 In the determination of his civil rights and obligations or of any criminal
charge against him, everyone is entitled to a fair and public hearing
within a reasonable time by an independent and impartial tribunal
established by law. Judgment shall be pronounced publicly but the press
and public may be excluded from all or part of the trial in the interests of
morals, public order or national security in a democratic society, where
the interests of juveniles or the protection of the private life of the parties
so require, or to the extent strictly necessary in the opinion of the court
in special circumstances where publicity would prejudice the interests of
justice.
2 Everyone charged with a criminal offence shall be presumed innocent
until proved guilty according to law.
3 Everyone charged with a criminal offence has the following minimum
rights:
a to be informed promptly, in a language which he understands and in
detail, of the nature and cause of the accusation against him;
b to have adequate time and facilities for the preparation of his
defence;
6
c to defend himself in person or through legal assistance of his own
choosing or, if he has not sufficient means to pay for legal
assistance, to be given it free when the interests of justice so
require;
d to examine or have examined witnesses against him and to obtain
the attendance and examination of witnesses on his behalf under the
same conditions as witnesses against him;
e to have the free assistance of an interpreter if he cannot understand
or speak the language used in court.
Article 7 – No punishment without law
1 No one shall be held guilty of any criminal offence on account of any act
or omission which did not constitute a criminal offence under national or
international law at the time when it was committed. Nor shall a heavier
penalty be imposed than the one that was applicable at the time the
criminal offence was committed.
2 This article shall not prejudice the trial and punishment of any person for
any act or omission which, at the time when it was committed, was
criminal according to the general principles of law recognised by civilised
nations.
Article 8 – Right to respect for private and family life
1 Everyone has the right to respect for his private and family life, his home
and his correspondence.
2 There shall be no interference by a public authority with the exercise of
this right except such as is in accordance with the law and is necessary
in a democratic society in the interests of national security, public safety
or the economic well-being of the country, for the prevention of disorder
or crime, for the protection of health or morals, or for the protection of
the rights and freedoms of others.
Article 9 – Freedom of thought, conscience and religion
1 Everyone has the right to freedom of thought, conscience and religion;
this right includes freedom to change his religion or belief and freedom,
either alone or in community with others and in public or private, to
manifest his religion or belief, in worship, teaching, practice and
observance.
7
2 Freedom to manifest one's religion or beliefs shall be subject only to
such limitations as are prescribed by law and are necessary in a
democratic society in the interests of public safety, for the protection of
public order, health or morals, or for the protection of the rights and
freedoms of others.
Article 10 – Freedom of expression
1 Everyone has the right to freedom of expression. This right shall include
freedom to hold opinions and to receive and impart information and
ideas without interference by public authority and regardless of frontiers.
This article shall not prevent States from requiring the licensing of
broadcasting, television or cinema enterprises.
2 The exercise of these freedoms, since it carries with it duties and
responsibilities, may be subject to such formalities, conditions,
restrictions or penalties as are prescribed by law and are necessary in a
democratic society, in the interests of national security, territorial
integrity or public safety, for the prevention of disorder or crime, for the
protection of health or morals, for the protection of the reputation or
rights of others, for preventing the disclosure of information received in
confidence, or for maintaining the authority and impartiality of the
judiciary.
Article 11 – Freedom of assembly and association
1 Everyone has the right to freedom of peaceful assembly and to freedom
of association with others, including the right to form and to join trade
unions for the protection of his interests.
2 No restrictions shall be placed on the exercise of these rights other than
such as are prescribed by law and are necessary in a democratic
society in the interests of national security or public safety, for the
prevention of disorder or crime, for the protection of health or morals or
for the protection of the rights and freedoms of others. This article shall
not prevent the imposition of lawful restrictions on the exercise of these
rights by members of the armed forces, of the police or of the
administration of the State.
8
Article 12 – Right to marry
Men and women of marriageable age have the right to marry and to
found a family, according to the national laws governing the exercise of
this right.
Article 13 – Right to an effective remedy
Everyone whose rights and freedoms as set forth in this Convention are
violated shall have an effective remedy before a national authority
notwithstanding that the violation has been committed by persons acting
in an official capacity.
Article 14 – Prohibition of discrimination
The enjoyment of the rights and freedoms set forth in this Convention
shall be secured without discrimination on any ground such as sex,
race, colour, language, religion, political or other opinion, national or
social origin, association with a national minority, property, birth or other
status.
Article 15 – Derogation in time of emergency
1 In time of war or other public emergency threatening the life of the
nation any High Contracting Party may take measures derogating from
its obligations under this Convention to the extent strictly required by the
exigencies of the situation, provided that such measures are not
inconsistent with its other obligations under international law.
2 No derogation from Article 2, except in respect of deaths resulting from
lawful acts of war, or from Articles 3, 4 (paragraph 1) and 7 shall be
made under this provision.
3 Any High Contracting Party availing itself of this right of derogation shall
keep the Secretary General of the Council of Europe fully informed of
the measures which it has taken and the reasons therefor. It shall also
inform the Secretary General of the Council of Europe when such
measures have ceased to operate and the provisions of the Convention
are again being fully executed.
9
Article 16 – Restrictions on political activity of aliens
Nothing in Articles 10, 11 and 14 shall be regarded as preventing the
High Contracting Parties from imposing restrictions on the political
activity of aliens.
Article 17 – Prohibition of abuse of rights
Nothing in this Convention may be interpreted as implying for any State,
group or person any right to engage in any activity or perform any act
aimed at the destruction of any of the rights and freedoms set forth
herein or at their limitation to a greater extent than is provided for in the
Convention.
Article 18 – Limitation on use of restrictions on rights
The restrictions permitted under this Convention to the said rights and
freedoms shall not be applied for any purpose other than those for which
they have been prescribed.
10
SECTION II – EUROPEAN COURT OF HUMAN RIGHTS
Article 19 – Establishment of the Court
To ensure the observance of the engagements undertaken by the High
Contracting Parties in the Convention and the Protocols thereto, there
shall be set up a European Court of Human Rights, hereinafter referred
to as «the Court». It shall function on a permanent basis.
Article 20 – Number of judges
The Court shall consist of a number of judges equal to that of the High
Contracting Parties.
Article 21 – Criteria for office
1 The judges shall be of high moral character and must either possess the
qualifications required for appointment to high judicial office or be
jurisconsults of recognised competence.
2 The judges shall sit on the Court in their individual capacity.
3 During their term of office the judges shall not engage in any activity
which is incompatible with their independence, impartiality or with the
demands of a full-time office; all questions arising from the application of
this paragraph shall be decided by the Court.
Article 22 – Election of judges
1 The judges shall be elected by the Parliamentary Assembly with respect
to each High Contracting Party by a majority of votes cast from a list of
three candidates nominated by the High Contracting Party.
2 The same procedure shall be followed to complete the Court in the
event of the accession of new High Contracting Parties and in filling
casual vacancies.
11
Article 23 – Terms of office
1 The judges shall be elected for a period of six years. They may be reelected.
However, the terms of office of one-half of the judges elected at
the first election shall expire at the end of three years.
2 The judges whose terms of office are to expire at the end of the initial
period of three years shall be chosen by lot by the Secretary General of
the Council of Europe immediately after their election.
3 In order to ensure that, as far as possible, the terms of office of one-half
of the judges are renewed every three years, the Parliamentary
Assembly may decide, before proceeding to any subsequent election,
that the term or terms of office of one or more judges to be elected shall
be for a period other than six years but not more than nine and not less
than three years.
4 In cases where more than one term of office is involved and where the
Parliamentary Assembly applies the preceding paragraph, the allocation
of the terms of office shall be effected by a drawing of lots by the
Secretary General of the Council of Europe immediately after the
election.
5 A judge elected to replace a judge whose term of office has not expired
shall hold office for the remainder of his predecessor's term.
6 The terms of office of judges shall expire when they reach the age of 70.
7 The judges shall hold office until replaced. They shall, however,
continue to deal with such cases as they already have under
consideration.
Article 24 – Dismissal
No judge may be dismissed from his office unless the other judges
decide by a majority of two-thirds that he has ceased to fulfil the
required conditions.
Article 25 – Registry and legal secretaries
The Court shall have a registry, the functions and organisation of which
shall be laid down in the rules of the Court. The Court shall be assisted
by legal secretaries.
12
Article 26 – Plenary Court
The plenary Court shall
a elect its President and one or two Vice-Presidents for a period of
three years; they may be re-elected;
b set up Chambers, constituted for a fixed period of time;
c elect the Presidents of the Chambers of the Court; they may be
re-elected;
d adopt the rules of the Court, and
e elect the Registrar and one or more Deputy Registrars.
Article 27 – Committees, Chambers and Grand Chamber
1 To consider cases brought before it, the Court shall sit in committees of
three judges, in Chambers of seven judges and in a Grand Chamber of
seventeen judges. The Court's Chambers shall set up committees for a
fixed period of time.
2 There shall sit as an ex officio member of the Chamber and the Grand
Chamber the judge elected in respect of the State Party concerned or, if
there is none or if he is unable to sit, a person of its choice who shall sit
in the capacity of judge.
3 The Grand Chamber shall also include the President of the Court, the
Vice-Presidents, the Presidents of the Chambers and other judges
chosen in accordance with the rules of the Court. When a case is
referred to the Grand Chamber under Article 43, no judge from the
Chamber which rendered the judgment shall sit in the Grand Chamber,
with the exception of the President of the Chamber and the judge who
sat in respect of the State Party concerned.
Article 28 – Declarations of inadmissibility by committees
A committee may, by a unanimous vote, declare inadmissible or strike
out of its list of cases an application submitted under Article 34 where
such a decision can be taken without further examination. The decision
shall be final.
13
Article 29 – Decisions by Chambers on admissibility and merits
1 If no decision is taken under Article 28, a Chamber shall decide on the
admissibility and merits of individual applications submitted under
Article 34.
2 A Chamber shall decide on the admissibility and merits of inter-State
applications submitted under Article 33.
3 The decision on admissibility shall be taken separately unless the Court,
in exceptional cases, decides otherwise.
Article 30 – Relinquishment of jurisdiction to the Grand Chamber
Where a case pending before a Chamber raises a serious question
affecting the interpretation of the Convention or the protocols thereto, or
where the resolution of a question before the Chamber might have a
result inconsistent with a judgment previously delivered by the Court, the
Chamber may, at any time before it has rendered its judgment,
relinquish jurisdiction in favour of the Grand Chamber, unless one of the
parties to the case objects.
Article 31 – Powers of the Grand Chamber
The Grand Chamber shall
a determine applications submitted either under Article 33 or Article 34
when a Chamber has relinquished jurisdiction under Article 30 or
when the case has been referred to it under Article 43; and
b consider requests for advisory opinions submitted under Article 47.
Article 32 – Jurisdiction of the Court
1 The jurisdiction of the Court shall extend to all matters concerning the
interpretation and application of the Convention and the protocols
thereto which are referred to it as provided in Articles 33, 34 and 47.
2 In the event of dispute as to whether the Court has jurisdiction, the Court
shall decide.
14
Article 33 – Inter-State cases
Any High Contracting Party may refer to the Court any alleged breach of
the provisions of the Convention and the protocols thereto by another
High Contracting Party.
Article 34 – Individual applications
The Court may receive applications from any person, non-governmental
organisation or group of individuals claiming to be the victim of a
violation by one of the High Contracting Parties of the rights set forth in
the Convention or the protocols thereto. The High Contracting Parties
undertake not to hinder in any way the effective exercise of this right.
Article 35 – Admissibility criteria
1 The Court may only deal with the matter after all domestic remedies
have been exhausted, according to the generally recognised rules of
international law, and within a period of six months from the date on
which the final decision was taken.
2 The Court shall not deal with any application submitted under Article 34
that
a is anonymous; or
b is substantially the same as a matter that has already been
examined by the Court or has already been submitted to another
procedure of international investigation or settlement and contains
no relevant new information.
3 The Court shall declare inadmissible any individual application
submitted under Article 34 which it considers incompatible with the
provisions of the Convention or the protocols thereto, manifestly illfounded,
or an abuse of the right of application.
4 The Court shall reject any application which it considers inadmissible
under this Article. It may do so at any stage of the proceedings.
15
Article 36 – Third party intervention
1 In all cases before a Chamber or the Grand Chamber, a High
Contracting Party one of whose nationals is an applicant shall have the
right to submit written comments and to take part in hearings.
2 The President of the Court may, in the interest of the proper
administration of justice, invite any High Contracting Party which is not a
party to the proceedings or any person concerned who is not the
applicant to submit written comments or take part in hearings.
Article 37 – Striking out applications
1 The Court may at any stage of the proceedings decide to strike an
application out of its list of cases where the circumstances lead to the
conclusion that
a the applicant does not intend to pursue his application; or
b the matter has been resolved; or
c for any other reason established by the Court, it is no longer justified
to continue the examination of the application.
However, the Court shall continue the examination of the application if
respect for human rights as defined in the Convention and the protocols
thereto so requires.
2 The Court may decide to restore an application to its list of cases if it
considers that the circumstances justify such a course.
Article 38 – Examination of the case and friendly settlement
proceedings
1 If the Court declares the application admissible, it shall
a pursue the examination of the case, together with the
representatives of the parties, and if need be, undertake an
investigation, for the effective conduct of which the States concerned
shall furnish all necessary facilities;
16
b place itself at the disposal of the parties concerned with a view to
securing a friendly settlement of the matter on the basis of respect
for human rights as defined in the Convention and the protocols
thereto.
2 Proceedings conducted under paragraph 1.b shall be confidential.
Article 39 – Finding of a friendly settlement
If a friendly settlement is effected, the Court shall strike the case out of
its list by means of a decision which shall be confined to a brief
statement of the facts and of the solution reached.
Article 40 – Public hearings and access to documents
1 Hearings shall be in public unless the Court in exceptional
circumstances decides otherwise.
2 Documents deposited with the Registrar shall be accessible to the public
unless the President of the Court decides otherwise.
Article 41 – Just satisfaction
If the Court finds that there has been a violation of the Convention or the
protocols thereto, and if the internal law of the High Contracting Party
concerned allows only partial reparation to be made, the Court shall, if
necessary, afford just satisfaction to the injured party.
Article 42 – Judgments of Chambers
Judgments of Chambers shall become final in accordance with the
provisions of Article 44, paragraph 2.
Article 43 – Referral to the Grand Chamber
1 Within a period of three months from the date of the judgment of the
Chamber, any party to the case may, in exceptional cases, request that
the case be referred to the Grand Chamber.
2 A panel of five judges of the Grand Chamber shall accept the request if
the case raises a serious question affecting the interpretation or
application of the Convention or the protocols thereto, or a serious issue
of general importance.
17
3 If the panel accepts the request, the Grand Chamber shall decide the
case by means of a judgment.
Article 44 – Final judgments
1 The judgment of the Grand Chamber shall be final.
2 The judgment of a Chamber shall become final
a when the parties declare that they will not request that the case be
referred to the Grand Chamber; or
b three months after the date of the judgment, if reference of the case
to the Grand Chamber has not been requested; or
c when the panel of the Grand Chamber rejects the request to refer
under Article 43.
3 The final judgment shall be published.
Article 45 – Reasons for judgments and decisions
1 Reasons shall be given for judgments as well as for decisions declaring
applications admissible or inadmissible.
2 If a judgment does not represent, in whole or in part, the unanimous
opinion of the judges, any judge shall be entitled to deliver a separate
opinion.
Article 46 – Binding force and execution of judgments
1 The High Contracting Parties undertake to abide by the final judgment of
the Court in any case to which they are parties.
2 The final judgment of the Court shall be transmitted to the Committee of
Ministers, which shall supervise its execution.
Article 47 – Advisory opinions
1 The Court may, at the request of the Committee of Ministers, give
advisory opinions on legal questions concerning the interpretation of the
Convention and the protocols thereto.
18
2 Such opinions shall not deal with any question relating to the content or
scope of the rights or freedoms defined in Section I of the Convention
and the protocols thereto, or with any other question which the Court or
the Committee of Ministers might have to consider in consequence of
any such proceedings as could be instituted in accordance with the
Convention.
3 Decisions of the Committee of Ministers to request an advisory opinion
of the Court shall require a majority vote of the representatives entitled
to sit on the Committee.
Article 48 – Advisory jurisdiction of the Court
The Court shall decide whether a request for an advisory opinion
submitted by the Committee of Ministers is within its competence as
defined in Article 47.
Article 49 – Reasons for advisory opinions
1 Reasons shall be given for advisory opinions of the Court.
2 If the advisory opinion does not represent, in whole or in part, the
unanimous opinion of the judges, any judge shall be entitled to deliver a
separate opinion.
3 Advisory opinions of the Court shall be communicated to the Committee
of Ministers.
Article 50 – Expenditure on the Court
The expenditure on the Court shall be borne by the Council of Europe.
Article 51 – Privileges and immunities of judges
The judges shall be entitled, during the exercise of their functions, to the
privileges and immunities provided for in Article 40 of the Statute of the
Council of Europe and in the agreements made thereunder.
19
SECTION III – MISCELLANEOUS PROVISIONS
Article 52 – Inquiries by the Secretary General
On receipt of a request from the Secretary General of the Council of
Europe any High Contracting Party shall furnish an explanation of the
manner in which its internal law ensures the effective implementation of
any of the provisions of the Convention.
Article 53 – Safeguard for existing human rights
Nothing in this Convention shall be construed as limiting or derogating
from any of the human rights and fundamental freedoms which may be
ensured under the laws of any High Contracting Party or under any
other agreement to which it is a Party.
Article 54 – Powers of the Committee of Ministers
Nothing in this Convention shall prejudice the powers conferred on the
Committee of Ministers by the Statute of the Council of Europe.
Article 55 – Exclusion of other means of dispute settlement
The High Contracting Parties agree that, except by special agreement,
they will not avail themselves of treaties, conventions or declarations in
force between them for the purpose of submitting, by way of petition, a
dispute arising out of the interpretation or application of this Convention
to a means of settlement other than those provided for in this
Convention.
Article 56 – Territorial application
1 Any State may at the time of its ratification or at any time thereafter
declare by notification addressed to the Secretary General of the
Council of Europe that the present Convention shall, subject to
paragraph 4 of this Article, extend to all or any of the territories for
whose international relations it is responsible.
2 The Convention shall extend to the territory or territories named in the
notification as from the thirtieth day after the receipt of this notification by
the Secretary General of the Council of Europe.
20
3 The provisions of this Convention shall be applied in such territories with
due regard, however, to local requirements.
4 Any State which has made a declaration in accordance with paragraph 1
of this article may at any time thereafter declare on behalf of one or
more of the territories to which the declaration relates that it accepts the
competence of the Court to receive applications from individuals,
non-governmental organisations or groups of individuals as provided by
Article 34 of the Convention.
Article 57 – Reservations
1 Any State may, when signing this Convention or when depositing its
instrument of ratification, make a reservation in respect of any particular
provision of the Convention to the extent that any law then in force in its
territory is not in conformity with the provision. Reservations of a general
character shall not be permitted under this article.
2 Any reservation made under this article shall contain a brief statement of
the law concerned.
Article 58 – Denunciation
1 A High Contracting Party may denounce the present Convention only
after the expiry of five years from the date on which it became a party to
it and after six months' notice contained in a notification addressed to
the Secretary General of the Council of Europe, who shall inform the
other High Contracting Parties.
2 Such a denunciation shall not have the effect of releasing the High
Contracting Party concerned from its obligations under this Convention
in respect of any act which, being capable of constituting a violation of
such obligations, may have been performed by it before the date at
which the denunciation became effective.
3 Any High Contracting Party which shall cease to be a member of the
Council of Europe shall cease to be a Party to this Convention under the
same conditions.
4 The Convention may be denounced in accordance with the provisions of
the preceding paragraphs in respect of any territory to which it has been
declared to extend under the terms of Article 56.
21
Article 59 – Signature and ratification
1 This Convention shall be open to the signature of the members of the
Council of Europe. It shall be ratified. Ratifications shall be deposited
with the Secretary General of the Council of Europe.
2 The present Convention shall come into force after the deposit of ten
instruments of ratification.
3 As regards any signatory ratifying subsequently, the Convention shall
come into force at the date of the deposit of its instrument of ratification.
4 The Secretary General of the Council of Europe shall notify all the
members of the Council of Europe of the entry into force of the
Convention, the names of the High Contracting Parties who have ratified
it, and the deposit of all instruments of ratification which may be effected
subsequently.
Done at Rome this 4th day of November 1950, in English and French,
both texts being equally authentic, in a single copy which shall remain
deposited in the archives of the Council of Europe. The Secretary
General shall transmit certified copies to each of the signatories.
22
Protocol to the Convention for the
Protection of Human Rights and
Fundamental Freedoms
Paris, 20.III.1952
The governments signatory hereto, being members of the Council of Europe,
Being resolved to take steps to ensure the collective enforcement of
certain rights and freedoms other than those already included in Section
I of the Convention for the Protection of Human Rights and Fundamental
Freedoms signed at Rome on 4 November 1950 (hereinafter referred to
as “the Convention”),
Have agreed as follows:
Article 1 – Protection of property
Every natural or legal person is entitled to the peaceful enjoyment of his
possessions. No one shall be deprived of his possessions except in the
public interest and subject to the conditions provided for by law and by
the general principles of international law.
The preceding provisions shall not, however, in any way impair the right
of a State to enforce such laws as it deems necessary to control the use
of property in accordance with the general interest or to secure the
payment of taxes or other contributions or penalties.
Article 2 – Right to education
No person shall be denied the right to education. In the exercise of any
functions which it assumes in relation to education and to teaching, the
State shall respect the right of parents to ensure such education and
teaching in conformity with their own religious and philosophical
convictions.
Article 3 – Right to free elections
The High Contracting Parties undertake to hold free elections at
reasonable intervals by secret ballot, under conditions which will ensure
the free expression of the opinion of the people in the choice of the
legislature.
23
Article 4 – Territorial application
Any High Contracting Party may at the time of signature or ratification or
at any time thereafter communicate to the Secretary General of the
Council of Europe a declaration stating the extent to which it undertakes
that the provisions of the present Protocol shall apply to such of the
territories for the international relations of which it is responsible as are
named therein.
Any High Contracting Party which has communicated a declaration in
virtue of the preceding paragraph may from time to time communicate a
further declaration modifying the terms of any former declaration or
terminating the application of the provisions of this Protocol in respect of
any territory.
A declaration made in accordance with this article shall be deemed to
have been made in accordance with paragraph 1 of Article 56 of the
Convention.
Article 5 – Relationship to the Convention
As between the High Contracting Parties the provisions of Articles 1, 2,
3 and 4 of this Protocol shall be regarded as additional articles to the
Convention and all the provisions of the Convention shall apply
accordingly.
Article 6 – Signature and ratification
This Protocol shall be open for signature by the members of the Council
of Europe, who are the signatories of the Convention; it shall be ratified
at the same time as or after the ratification of the Convention. It shall
enter into force after the deposit of ten instruments of ratification. As
regards any signatory ratifying subsequently, the Protocol shall enter
into force at the date of the deposit of its instrument of ratification.
The instruments of ratification shall be deposited with the Secretary
General of the Council of Europe, who will notify all members of the
names of those who have ratified.
Done at Paris on the 20th day of March 1952, in English and French,
both texts being equally authentic, in a single copy which shall remain
deposited in the archives of the Council of Europe. The Secretary
General shall transmit certified copies to each of the signatory
governments.
24
Protocol No. 4 to the Convention for the
Protection of Human Rights and
Fundamental Freedoms securing certain
rights and freedoms other than those
already included in the Convention and in
the first Protocol thereto
Strasbourg, 16.IX.1963
The governments signatory hereto, being members of the Council of Europe,
Being resolved to take steps to ensure the collective enforcement of
certain rights and freedoms other than those already included in Section
I of the Convention for the Protection of Human Rights and Fundamental
Freedoms signed at Rome on 4th November 1950 (hereinafter referred
to as the “Convention”) and in Articles 1 to 3 of the First Protocol to the
Convention, signed at Paris on 20th March 1952,
Have agreed as follows:
Article 1 – Prohibition of imprisonment for debt
No one shall be deprived of his liberty merely on the ground of inability
to fulfil a contractual obligation.
Article 2 – Freedom of movement
1 Everyone lawfully within the territory of a State shall, within that territory,
have the right to liberty of movement and freedom to choose his
residence.
2 Everyone shall be free to leave any country, including his own.
3 No restrictions shall be placed on the exercise of these rights other than
such as are in accordance with law and are necessary in a democratic
society in the interests of national security or public safety, for the
maintenance of ordre public, for the prevention of crime, for the
protection of health or morals, or for the protection of the rights and
freedoms of others.
25
4 The rights set forth in paragraph 1 may also be subject, in particular
areas, to restrictions imposed in accordance with law and justified by the
public interest in a democratic society.
Article 3 – Prohibition of expulsion of nationals
1 No one shall be expelled, by means either of an individual or of a
collective measure, from the territory of the State of which he is a
national.
2 No one shall be deprived of the right to enter the territory of the state of
which he is a national.
Article 4 – Prohibition of collective expulsion of aliens
Collective expulsion of aliens is prohibited.
Article 5 – Territorial application
1 Any High Contracting Party may, at the time of signature or ratification of
this Protocol, or at any time thereafter, communicate to the Secretary
General of the Council of Europe a declaration stating the extent to
which it undertakes that the provisions of this Protocol shall apply to
such of the territories for the international relations of which it is
responsible as are named therein.
2 Any High Contracting Party which has communicated a declaration in
virtue of the preceding paragraph may, from time to time, communicate
a further declaration modifying the terms of any former declaration or
terminating the application of the provisions of this Protocol in respect of
any territory.
3 A declaration made in accordance with this article shall be deemed to
have been made in accordance with paragraph 1 of Article 56 of the
Convention.
4 The territory of any State to which this Protocol applies by virtue of
ratification or acceptance by that State, and each territory to which this
Protocol is applied by virtue of a declaration by that State under this
article, shall be treated as separate territories for the purpose of the
references in Articles 2 and 3 to the territory of a State.
26
5 Any State which has made a declaration in accordance with paragraph 1
or 2 of this Article may at any time thereafter declare on behalf of one or
more of the territories to which the declaration relates that it accepts the
competence of the Court to receive applications from individuals, nongovernmental
organisations or groups of individuals as provided in
Article 34 of the Convention in respect of all or any of Articles 1 to 4 of
this Protocol.”
Article 6 – Relationship to the Convention
As between the High Contracting Parties the provisions of Articles 1 to 5
of this Protocol shall be regarded as additional Articles to the
Convention, and all the provisions of the Convention shall apply
accordingly.
Article 7 – Signature and ratification
1 This Protocol shall be open for signature by the members of the Council
of Europe who are the signatories of the Convention; it shall be ratified
at the same time as or after the ratification of the Convention. It shall
enter into force after the deposit of five instruments of ratification. As
regards any signatory ratifying subsequently, the Protocol shall enter
into force at the date of the deposit of its instrument of ratification.
2 The instruments of ratification shall be deposited with the Secretary
General of the Council of Europe, who will notify all members of the
names of those who have ratified.
In witness whereof the undersigned, being duly authorised thereto, have
signed this Protocol.
Done at Strasbourg, this 16th day of September 1963, in English and in
French, both texts being equally authoritative, in a single copy which
shall remain deposited in the archives of the Council of Europe. The
Secretary General shall transmit certified copies to each of the signatory
states.
27
Protocol No. 6 to the Convention for the
Protection of Human Rights and
Fundamental Freedoms concerning the
abolition of the death penalty
Strasbourg, 28.IV.1983
The member States of the Council of Europe, signatory to this Protocol
to the Convention for the Protection of Human Rights and Fundamental
Freedoms, signed at Rome on 4 November 1950 (hereinafter referred to
as “the Convention”),
Considering that the evolution that has occurred in several member
States of the Council of Europe expresses a general tendency in favour
of abolition of the death penalty;
Have agreed as follows:
Article 1 – Abolition of the death penalty
The death penalty shall be abolished. No-one shall be condemned to
such penalty or executed.
Article 2 – Death penalty in time of war
A State may make provision in its law for the death penalty in respect of
acts committed in time of war or of imminent threat of war; such penalty
shall be applied only in the instances laid down in the law and in
accordance with its provisions. The State shall communicate to the
Secretary General of the Council of Europe the relevant provisions of
that law.
Article 3 – Prohibition of derogations
No derogation from the provisions of this Protocol shall be made under
Article 15 of the Convention.
28
Article 4 – Prohibition of reservations
No reservation may be made under Article 57 of the Convention in
respect of the provisions of this Protocol.
Article 5 – Territorial application
1 Any State may at the time of signature or when depositing its instrument
of ratification, acceptance or approval, specify the territory or territories
to which this Protocol shall apply.
2 Any State may at any later date, by a declaration addressed to the
Secretary General of the Council of Europe, extend the application of
this Protocol to any other territory specified in the declaration. In respect
of such territory the Protocol shall enter into force on the first day of the
month following the date of receipt of such declaration by the Secretary
General.
3 Any declaration made under the two preceding paragraphs may, in
respect of any territory specified in such declaration, be withdrawn by a
notification addressed to the Secretary General. The withdrawal shall
become effective on the first day of the month following the date of
receipt of such notification by the Secretary General.
Article 6 – Relationship to the Convention
As between the States Parties the provisions of Articles 1 and 5 of this
Protocol shall be regarded as additional articles to the Convention and
all the provisions of the Convention shall apply accordingly.
Article 7 – Signature and ratification
The Protocol shall be open for signature by the member States of the
Council of Europe, signatories to the Convention. It shall be subject to
ratification, acceptance or approval. A member State of the Council of
Europe may not ratify, accept or approve this Protocol unless it has,
simultaneously or previously, ratified the Convention. Instruments of
ratification, acceptance or approval shall be deposited with the
Secretary General of the Council of Europe.
29
Article 8 – Entry into force
1 This Protocol shall enter into force on the first day of the month following
the date on which five member States of the Council of Europe have
expressed their consent to be bound by the Protocol in accordance with
the provisions of Article 7.
2 In respect of any member State which subsequently expresses its
consent to be bound by it, the Protocol shall enter into force on the first
day of the month following the date of the deposit of the instrument of
ratification, acceptance or approval.
Article 9 – Depositary functions
The Secretary General of the Council of Europe shall notify the member
States of the Council of:
a any signature;
b the deposit of any instrument of ratification, acceptance or approval;
c any date of entry into force of this Protocol in accordance with
articles 5 and 8;
d any other act, notification or communication relating to this Protocol.
In witness whereof the undersigned, being duly authorised thereto, have
signed this Protocol.
Done at Strasbourg, this 28th day of April 1983, in English and in
French, both texts being equally authentic, in a single copy which shall
be deposited in the archives of the Council of Europe. The Secretary
General of the Council of Europe shall transmit certified copies to each
member State of the Council of Europe.
30
Protocol No. 7 to the Convention for
the Protection of Human Rights and
Fundamental Freedoms
Strasbourg, 22.XI.1984
The member States of the Council of Europe signatory hereto,
Being resolved to take further steps to ensure the collective enforcement
of certain rights and freedoms by means of the Convention for the
Protection of Human Rights and Fundamental Freedoms signed at
Rome on 4 November 1950 (hereinafter referred to as “the
Convention”),
Have agreed as follows:
Article 1 – Procedural safeguards relating to expulsion of aliens
1 An alien lawfully resident in the territory of a State shall not be expelled
therefrom except in pursuance of a decision reached in accordance with
law and shall be allowed:
a to submit reasons against his expulsion,
b to have his case reviewed, and
c to be represented for these purposes before the competent authority
or a person or persons designated by that authority.
2 An alien may be expelled before the exercise of his rights under
paragraph 1.a, b and c of this Article, when such expulsion is necessary
in the interests of public order or is grounded on reasons of national
security.
Article 2 – Right of appeal in criminal matters
1 Everyone convicted of a criminal offence by a tribunal shall have the
right to have his conviction or sentence reviewed by a higher tribunal.
The exercise of this right, including the grounds on which it may be
exercised, shall be governed by law.
2 This right may be subject to exceptions in regard to offences of a minor
character, as prescribed by law, or in cases in which the person
31
concerned was tried in the first instance by the highest tribunal or was
convicted following an appeal against acquittal.
Article 3 – Compensation for wrongful conviction
When a person has by a final decision been convicted of a criminal
offence and when subsequently his conviction has been reversed, or he
has been pardoned, on the ground that a new or newly discovered fact
shows conclusively that there has been a miscarriage of justice, the
person who has suffered punishment as a result of such conviction shall
be compensated according to the law or the practice of the State
concerned, unless it is proved that the non-disclosure of the unknown
fact in time is wholly or partly attributable to him.
Article 4 – Right not to be tried or punished twice
1 No one shall be liable to be tried or punished again in criminal
proceedings under the jurisdiction of the same State for an offence for
which he has already been finally acquitted or convicted in accordance
with the law and penal procedure of that State.
2 The provisions of the preceding paragraph shall not prevent the
reopening of the case in accordance with the law and penal procedure
of the State concerned, if there is evidence of new or newly discovered
facts, or if there has been a fundamental defect in the previous
proceedings, which could affect the outcome of the case.
3 No derogation from this Article shall be made under Article 15 of the
Convention.
Article 5 – Equality between spouses
Spouses shall enjoy equality of rights and responsibilities of a private
law character between them, and in their relations with their children, as
to marriage, during marriage and in the event of its dissolution. This
Article shall not prevent States from taking such measures as are
necessary in the interests of the children.
Article 6 – Territorial application
1 Any State may at the time of signature or when depositing its instrument
of ratification, acceptance or approval, specify the territory or territories
to which the Protocol shall apply and state the extent to which it
undertakes that the provisions of this Protocol shall apply to such
territory or territories.
32
2 Any State may at any later date, by a declaration addressed to the
Secretary General of the Council of Europe, extend the application of
this Protocol to any other territory specified in the declaration. In respect
of such territory the Protocol shall enter into force on the first day of the
month following the expiration of a period of two months after the date of
receipt by the Secretary General of such declaration.
3 Any declaration made under the two preceding paragraphs may, in
respect of any territory specified in such declaration, be withdrawn or
modified by a notification addressed to the Secretary General. The
withdrawal or modification shall become effective on the first day of the
month following the expiration of a period of two months after the date of
receipt of such notification by the Secretary General.
4 A declaration made in accordance with this Article shall be deemed to
have been made in accordance with paragraph 1 of Article 56 of the
Convention.
5 The territory of any State to which this Protocol applies by virtue of
ratification, acceptance or approval by that State, and each territory to
which this Protocol is applied by virtue of a declaration by that State
under this Article, may be treated as separate territories for the purpose
of the reference in Article 1 to the territory of a State.
6 Any State which has made a declaration in accordance with paragraph 1
or 2 of this Article may at any time thereafter declare on behalf of one or
more of the territories to which the declaration relates that it accepts the
competence of the Court to receive applications from individuals, nongovernmental
organisations or groups of individuals as provided in
Article 34 of the Convention in respect of Articles 1 to 5 of this Protocol.
Article 7 – Relationship to the Convention
As between the States Parties, the provisions of Article 1 to 6 of this
Protocol shall be regarded as additional Articles to the Convention, and
all the provisions of the Convention shall apply accordingly.
Article 8 – Signature and ratification
This Protocol shall be open for signature by member States of the
Council of Europe which have signed the Convention. It is subject to
ratification, acceptance or approval. A member State of the Council of
33
Europe may not ratify, accept or approve this Protocol without previously
or simultaneously ratifying the Convention. Instruments of ratification,
acceptance or approval shall be deposited with the Secretary General of
the Council of Europe.
Article 9 – Entry into force
1 This Protocol shall enter into force on the first day of the month following
the expiration of a period of two months after the date on which seven
member States of the Council of Europe have expressed their consent
to be bound by the Protocol in accordance with the provisions of Article
8.
2 In respect of any member State which subsequently expresses its
consent to be bound by it, the Protocol shall enter into force on the first
day of the month following the expiration of a period of two months after
the date of the deposit of the instrument of ratification, acceptance or
approval.
Article 10 – Depositary functions
The Secretary General of the Council of Europe shall notify all the
member States of the Council of Europe of:
a any signature;
b the deposit of any instrument of ratification, acceptance or approval;
c any date of entry into force of this Protocol in accordance with
Articles 6 and 9;
d any other act, notification or declaration relating to this Protocol.
In witness whereof the undersigned, being duly authorised thereto, have
signed this Protocol.
Done at Strasbourg, this 22nd day of November 1984, in English and
French, both texts being equally authentic, in a single copy which shall
be deposited in the archives of the Council of Europe. The Secretary
General of the Council of Europe shall transmit certified copies to each
member State of the Council of Europe.
34
Protocol No. 12 to the Convention for
the Protection of Human Rights and
Fundamental Freedoms
Rome, 4.XI.2000
The member States of the Council of Europe signatory hereto,
Having regard to the fundamental principle according to which all
persons are equal before the law and are entitled to the equal protection
of the law;
Being resolved to take further steps to promote the equality of all
persons through the collective enforcement of a general prohibition of
discrimination by means of the Convention for the Protection of Human
Rights and Fundamental Freedoms signed at Rome on 4 November
1950 (hereinafter referred to as “the Convention”);
Reaffirming that the principle of non-discrimination does not prevent
States Parties from taking measures in order to promote full and
effective equality, provided that there is an objective and reasonable
justification for those measures,
Have agreed as follows:
Article 1 – General prohibition of discrimination
1 The enjoyment of any right set forth by law shall be secured without
discrimination on any ground such as sex, race, colour, language,
religion, political or other opinion, national or social origin, association
with a national minority, property, birth or other status.
2 No one shall be discriminated against by any public authority on any
ground such as those mentioned in paragraph 1.
Article 2 – Territorial application
1 Any State may, at the time of signature or when depositing its instrument
of ratification, acceptance or approval, specify the territory or territories
to which this Protocol shall apply.
35
2 Any State may at any later date, by a declaration addressed to the
Secretary General of the Council of Europe, extend the application of
this Protocol to any other territory specified in the declaration. In respect
of such territory the Protocol shall enter into force on the first day of the
month following the expiration of a period of three months after the date
of receipt by the Secretary General of such declaration.
3 Any declaration made under the two preceding paragraphs may, in
respect of any territory specified in such declaration, be withdrawn or
modified by a notification addressed to the Secretary General of the
Council of Europe. The withdrawal or modification shall become
effective on the first day of the month following the expiration of a period
of three months after the date of receipt of such notification by the
Secretary General.
4 A declaration made in accordance with this article shall be deemed to
have been made in accordance with paragraph 1 of Article 56 of the
Convention.
5 Any State which has made a declaration in accordance with paragraph 1
or 2 of this article may at any time thereafter declare on behalf of one or
more of the territories to which the declaration relates that it accepts the
competence of the Court to receive applications from individuals, nongovernmental
organisations or groups of individuals as provided by
Article 34 of the Convention in respect of Article 1 of this Protocol.
Article 3 – Relationship to the Convention
As between the States Parties, the provisions of Articles 1 and 2 of this
Protocol shall be regarded as additional articles to the Convention, and
all the provisions of the Convention shall apply accordingly.
Article 4 – Signature and ratification
This Protocol shall be open for signature by member States of the
Council of Europe which have signed the Convention. It is subject to
ratification, acceptance or approval. A member State of the Council of
Europe may not ratify, accept or approve this Protocol without previously
or simultaneously ratifying the Convention. Instruments of ratification,
acceptance or approval shall be deposited with the Secretary General of
the Council of Europe.
36
Article 5 – Entry into force
1 This Protocol shall enter into force on the first day of the month following
the expiration of a period of three months after the date on which ten
member States of the Council of Europe have expressed their consent
to be bound by the Protocol in accordance with the provisions of
Article 4.
2 In respect of any member State which subsequently expresses its
consent to be bound by it, the Protocol shall enter into force on the first
day of the month following the expiration of a period of three months
after the date of the deposit of the instrument of ratification, acceptance
or approval.
Article 6 – Depositary functions
The Secretary General of the Council of Europe shall notify all the
member States of the Council of Europe of:
a any signature;
b the deposit of any instrument of ratification, acceptance or approval;
c any date of entry into force of this Protocol in accordance with
Articles 2 and 5;
d any other act, notification or communication relating to this Protocol.
In witness whereof the undersigned, being duly authorised thereto, have
signed this Protocol.
Done at Rome, this 4th day of November 2000, in English and in
French, both texts being equally authentic, in a single copy which shall
be deposited in the archives of the Council of Europe. The Secretary
General of the Council of Europe shall transmit certified copies to each
member State of the Council of Europe.
37
Protocol No. 13 to the Convention for
the Protection of Human Rights and
Fundamental Freedoms
Concerning the abolition of the death
penalty in all circumstances
Vilnius, 3.V.2002
The member States of the Council of Europe signatory hereto,
Convinced that everyone’s right to life is a basic value in a democratic
society and that the abolition of the death penalty is essential for the
protection of this right and for the full recognition of the inherent dignity
of all human beings;
Wishing to strengthen the protection of the right to life guaranteed by the
Convention for the Protection of Human Rights and Fundamental
Freedoms signed at Rome on 4 November 1950 (hereinafter referred to
as “the Convention”);
Noting that Protocol No. 6 to the Convention, concerning the Abolition of
the Death Penalty, signed at Strasbourg on 28 April 1983, does not
exclude the death penalty in respect of acts committed in time of war or
of imminent threat of war;
Being resolved to take the final step in order to abolish the death penalty
in all circumstances,
Have agreed as follows:
Article 1 – Abolition of the death penalty
The death penalty shall be abolished. No one shall be condemned to
such penalty or executed.
Article 2 – Prohibitions of derogations
No derogation from the provisions of this Protocol shall be made under
Article 15 of the Convention.
38
Article 3 – Prohibitions of reservations
No reservation may be made under Article 57 of the Convention in
respect of the provisions of this Protocol.
Article 4 – Territorial application
1 Any state may, at the time of signature or when depositing its instrument
of ratification, acceptance or approval, specify the territory or territories
to which this Protocol shall apply.
2 Any state may at any later date, by a declaration addressed to the
Secretary General of the Council of Europe, extend the application of
this Protocol to any other territory specified in the declaration. In respect
of such territory the Protocol shall enter into force on the first day of the
month following the expiration of a period of three months after the date
of receipt by the Secretary General of such declaration.
3 Any declaration made under the two preceding paragraphs may, in
respect of any territory specified in such declaration, be withdrawn or
modified by a notification addressed to the Secretary General. The
withdrawal or modification shall become effective on the first day of the
month following the expiration of a period of three months after the date
of receipt of such notification by the Secretary General.
Article 5 – Relationship to the Convention
As between the states Parties the provisions of Articles 1 to 4 of this
Protocol shall be regarded as additional articles to the Convention, and
all the provisions of the Convention shall apply accordingly.
Article 6 – Signature and ratification
This Protocol shall be open for signature by member states of the
Council of Europe which have signed the Convention. It is subject to
ratification, acceptance or approval. A member state of the Council of
Europe may not ratify, accept or approve this Protocol without previously
or simultaneously ratifying the Convention. Instruments of ratification,
acceptance or approval shall be deposited with the Secretary General of
the Council of Europe.
39
Article 7 – Entry into force
1 This Protocol shall enter into force on the first day of the month following
the expiration of a period of three months after the date on which ten
member states of the Council of Europe have expressed their consent to
be bound by the Protocol in accordance with the provisions of Article 6.
2 In respect of any member state which subsequently expresses its
consent to be bound by it, the Protocol shall enter into force on the first
day of the month following the expiration of a period of three months
after the date of the deposit of the instrument of ratification, acceptance
or approval.
Article 8 – Depositary functions
The Secretary General of the Council of Europe shall notify all the
member states of the Council of Europe of:
a any signature;
b the deposit of any instrument of ratification, acceptance or approval;
c any date of entry into force of this Protocol in accordance with
Articles 4 and 7;
d any other act, notification or communication relating to this Protocol;
In witness whereof the undersigned, being duly authorised thereto, have
signed this Protocol.
Done at Vilnius, this 3rd day of May 2002, in English and in French, both
texts being equally authentic, in a single copy which shall be deposited
in the archives of the Council of Europe. The Secretary General of the
Council of Europe shall transmit certified copies to each member state of
the Council of Europe.
#109
TURKISH ATTORNEYSHIP LAW / Application Forms
May 28, 2007, 11:50:01 PM
Turkish Application Forms
The following information is provided to help you understand the necessary components included in various Power of Attorney documents. These are intended to be used as guidelines only and readers are strongly encouraged to seek competent legal counsel before entering into any important agreements.

Power of Attorney for Purchasing Vehicles (Company)
(Translation )
We, the undersigned, ... domiciled ...do hereby present, make, constitute and appoint ............ (name) and........... (name) domiciled at ... Istanbul to act jointly and separately as our Company's representatives to purchase vehicles at the prices he deems fit, conclude the transfer contract at the public notary, effect the necessary taxes, charges and duties and to represent our Company at the Tax Office, the Traffic Registry and other authorities.
Name and surname .................
On behalf of... (Name of the Company)

Power of attorney for purchasing vehicles (person)
(Translation)
I, the undersigned, do hereby present, make, constitute and appoint ........(name) and .......... (name) domiciled at ............. Istanbul to act jointly and separately as my representatives to purchase vehicles at the prices he deems fit, conclude the transfer contract at the public notary, effect the necessary taxes, charges and duties, and to represent me at the Tax Office, the Traffic Registry and other authorities.
On behalf of ...(Name and surname)

General Power of Attorney for Litigation (Company)
(Translation)
We, the undersigned, ... ........, domiciled at ............ do hereby present, make, constitute and appoint ... .......domiciled at .........Istanbul to act jointly and separately as our Company's true and lawful attorneys in connection with: all kinds of actions, litigation, legal and administrative proceedings before Turkish courts, execution offices, assemblies, departments and institutions in all instances and degrees of the Republic of Turkey in all capacities and by all means, perform any and all kinds of formalities and operations they shall deem fit and necessary for the protection of our Company's rights and interests; file actions, intervene in proceedings, renounce and accept claims, prepare, sign, submit, execute and finalize petitions and applications, send and receive notifications, draw protests and reply to the same; present, call or reject witnesses, experts and arbitrators, challenge and reject judges, request clarification and revision of judgment, collect and encase our Company's receivables, appeal to higher courts, make appearances, transfer this power of attorney in full or part and revoke such transfer.
On behalf of ... (Name and surname)

General Power of Attorney for Litigation (Person)
(Translation)
I, the undersigned, ..........., domiciled at ...do hereby present, make, constitute and appoint ........ domiciled at ...Istanbul to act jointly and separately as my true and lawful attorneys in connection with all kinds of actions: litigation, legal and administrative proceedings before Turkish courts, execution offices, assemblies, departments and institutions in all instances and degrees of the Republic of Turkey in all capacities and by all means, perform any and all kinds of formalities and operations they shall deem fit and necessary for the protection of my rights and interests, file, actions, intervene in proceedings, renounce and accept claims, prepare, sign, submit, execute and finalize petitions and applications, send and receive notifications, draw protests and reply to the same, present, call or reject witnesses, experts and arbitrators, challenge and reject judges, request clarification and revision of judgment, collect and encase my receivables, appeal to higher courts, make appearances, transfer this power of attorney in full or part and revoke such transfer.
On behalf of .... (Name and surname)


Power of Attorney for application to fixed telephones and mobile phones
(Translation)
I, the undersigned, hereby present, make, constitute and appoint Mr./Ms. (Name of the empowered party) domiciled at (Address), to act as my true and lawful representative in connection with all kinds of actions, administrative proceedings before Türk Telekom Istanbul and Anatolian Telephone Head Directorates, Telsim, Turkcell and Aria General Directorates, submit and execute petitions, apply for fixed phones, mobile phones and telefax, put up the expenses, make contracts of telephone and subscriptions, establish and transfer them to other addresses, obtain simcards and change them, receive the invoices, request detailed breakdown of expenses, cancel and request additional services, open and cancel the lines, establish parallel lines and send and receive notifications relevant to the subject.
On behalf of ... (Name and surname)


Power of attorney for application of Water - ISKI Istanbul Water and Canalization Administration
I, the undersigned, hereby present, make, constitute and appoint Mr./Ms. (the name of the empowering party), domiciled at (address of the empowered party), to act as my true and lawful representative in connection with all kinds: of actions, administrative proceedings before the head Directorate and Directorates of Istanbul Water and Canalization Works, apply for the subscription for water, pay the expenses, make contracts, pay the deposits, open and cancel the subscriptions, submit petitions, carry out the essential proceedings, and send and receive notifications.
On behalf of (Name and surname)








#110
TURKISH ATTORNEYSHIP LAW / Turkish Lawyers & Bars
May 28, 2007, 11:45:07 PM
Turkish Lawyers & Turkish Bars

Anyone who retains an attorney in Turkey should contract with the lawyer for the specific services the client wishes performed, fees, and special instructions. Any and all instructions to the lawyer should be made in writing to avoid confusion and conflict. Even with a written contract, an attorney is not necessarily bound to his/her client's instruction.
Fees are determined by the lawyer or his/her firm, although a potential client may bargain. Fees are subject to scant legal regulation and, have no upper limit. The fee will depend on variable factors including (but by no means limited to) the lawyer's reputation, experience, knowledge, specialization, and (especially important to non-Turks) foreign language abilities. Also considered is the client's ability to pay the complexity and sensitivity of the case, the client's nationality, and how much similar litigation might cost in the client's home country.

An attorney is legally obliged to serve the best interests of his/her client. The client and the attorney, however, may not necessarily agree on what these interests are and how they should be served. While the client may provide direction to the attorney, the attorney is not obligated to follow those instructions. The attorney, in effect, has the right to decide what is in the best interest of his/her client, even if the client thinks otherwise. In a criminal case, for example an attorney is obligated by law to pursue his client's defense to its conclusion, pursuing all avenues of appeal up to and including the Supreme Court.

While under most circumstances a client would appreciate this doggedness on his behalf, there are occasions when a client might not wish to have his verdict appealed. If, for example, an American citizen convicted of a crime in Turkey wishes to apply to be transferred to serve his sentence in the United States (as he may do under treaty), his application will not be entertained while his case is still "open", that is, under appeal. If a client does not wish further appeals of a verdict or a conviction, he must specifically inform his attorney in writing. Without this written instruction, the attorney could be open to a lawsuit from his client and disciplinary action by the Bar Association for failure to fulfill his responsibility to appeal on his/her client's behalf.

Even if a client requests specifically that his attorney not lodge an appeal, the attorney may after consultation with the prosecutor, still proceed with the appeals process in "extenuating circumstances", most notably if the attorney suspects that his client is being coerced into dropping an appeal. The attorney should (but is not required to) inform his client of this action.

Hanging or firing an attorney has a procedure as well. It is almost impossible to dismiss an attorney in the thick of a case, no matter how dissatisfied the client might be. In a criminal case a client cannot dismiss his attorney until all avenues of appeal have been exhausted. Only then may a client dismiss his attorney, and it must be in writing.

The lawyer's fee is guaranteed and must be paid regardless of the circumstances of dismissal. It cannot be used as a lever to get the lawyer to obey his/her client, nor can the fee be withheld as a "punishment" for failure to do so. Withholding an attorney's retainer or other fees is grounds for legal prosecution.

A client's files are the property of his attorney. The attorney may show his/her client certain items in his file, but is not required to do so, and if the client hires a new lawyer, the new attorney may not necessarily have access to his/her client's prior case file.

For a fee, individuals may lodge written complaints about lawyers with the Bar Association. The Bar's board of directors reviews complaints and forwards those meriting investigation to a disciplinary committee. If this panel determines that a lawyer has engaged in unethical, improper, or illegal behavior, the board can mete punishment in the form of a cash fine, suspension from practice, and/or temporary or permanent expulsion from the Bar.

For further information, contact Istanbul or Ankara Bar Association :


Istanbul Barosu (Istanbul Bar)
Istiklal Caddesi, Baro Han, Kat 2, Beyoğlu, Istanbul
Tel: (212) 251 98 55

Ankara Barosu (Ankara Bar)
Adliye Binasi 5.Kat Sihhiye / Ankara
Tel: (312) 310 21 91 (pbx)
Fax: (312) 309 22 37

#111
LEGAL NEWS / Hukuki NET Legal news directory
May 28, 2007, 11:30:32 PM
Hukuki Net Legal news directory
Our Legislation and litigation news resources : Daily, weekly, monthly Journals, Blawgs (web blogs), xml and rss feeds, local and worldwide search engines, latest press releases from - International and local News & Information services - for legal professionals and public.
Law.Hukuki.NET a human edited News Directory, organized by category, offers content rich and well designed legal sites.
#112
With Regard to the Copenhagen Political Criteria - A contribution by Nazan Moroglu, TR
I. Amendments on gender equality
II. Amendments to enhance the right to freedom of association and peaceful assembly
III. Amendments for the protection of the weak
IV. Amendments for the protection of the rights of the child


I. Amendments on gender equality

To "enact the Draft Turkish Civil Code embodying improvements in gender equality" was one of the short term commitments in the Political Criteria Section 2.1.11 (Full Enjoyment by All Individuals without Any Discrimination and Irrespective of Their Language, Race, Colour, Sex, Political Opinion, Philosophical Belief or Religion of All Human Rights and Fundamental Freedoms; Freedom of Thought, Conscience and Religion) of the NPAA. The provisions of the new Turkish Civil Code, which ensure gender equality, are highlighted in the following articles.

Article 32 (Former Article 31)

A new provision has been introduced regarding the identification of the court competent to take a decision of absence. The provision in former Article 31, which reads as "if the absent person has never resided in Turkey, then the place of registration of birth, or if no such registration exists, the registration of the father", has been replaced with "the court in the area where the mother or the father is registered."

Article 124 (Former Article 88)

The provision on the legal age of marriage, which was 17
for men and 15 for women, has been replaced with 17 years of age for both men and women.

The minimum legal age for marriage, as may be decided by the judge, used to be 15 for men and 14 for women. This has been changed to 16 years of age for both men and women.

Therefore, the discrepancy in the legal age of marriage between men and women has been remedied.

Article 134 (Former Article 97)

The provision that the application for marriage is to be filed at the place of residence of the husband has been replaced with the provision that the application of marriage is to be filed at the place of residence of either the husband or the wife.

Article 173 (Former Article 141)

A new provision has been introduced which provides that, upon divorce, the married woman-if she had been divorced or widowed prior to the marriage- may request from the judge to be allowed to use her maiden name.

Article 175 (Former Article 144)

The provision in the second sentence of the first paragraph, which reads as "However, for the husband to apply for alimony from the wife, the wife must have adequate financial means" has been removed.

Article 186 (Former Article 152)

A new clause has been added, which reads as "the spouses will choose the house together".

The provision in former Article 152, which reads as "the husband is the head of the household" has been replaced with "the spouses shall manage the household together."

The provision in former Article 152, which provides that the expenses of the marriage are to be met by the husband, has been replaced with the new provision, which reads as "spouses shall contribute in labour and in property to the expenses of the marriage to the extent they are able to do so."

Article 188 (Former Articles 154 and 155)

A new provision has been introduced, which reads as "Both spouses may legally represent the marriage with respect to the expenses of the marital union for the duration of the marriage" and the provision in former Article 154, which reads as "the marriage is represented by the husband" has been removed.

Article 189 (Former Articles 187, 202-204, 215-217)

A new provision which provides that spouses shall have joint and several liability with respect to third persons when undertaking legal transactions in representing the marital union has been added to replace the provision where the husband was solely liable for these obligations.

Article 192

A new provision has been introduced which provides that neither of the spouses needs the agreement of the other when choosing a profession or trade.

With the introduction of this provision, the relevant legislation is aligned with the decision taken by the Constitutional Court in 1990.

Article 193

With this amendment, the regime pertaining to the representation of the marital union in former Article 154 and the following articles has been changed.

Article 193 introduces the provision that "Either one of the spouses may undertake legal transactions with their spouses or with third persons unless otherwise is provided for in the law".

The provision in former Article 155, which allowed for the representation of the wife by her husband in legal transactions with third persons, is no longer in force. According to the amendment in Article 193, either one of the spouses may undertake legal transactions with the other spouse or with third persons.

Article 198 (Former Article 163)

The provision in former Article 163 on the obligation of debtors to pay their debts to the wife has been replaced in the new Article 198 with the provision that the judge may decide to take the decision for debtors to pay their debts to the spouse where the other spouse is negligent in meeting the expenditures of the marital union.

Article 202 and the following articles (Former Article 170)

These provisions replace the "separation of property" regime referred to in former Article 170 with the phrase "share in properties obtained". These provisions aim to remedy inequalities between spouses created by "the separation of property" regime in case of divorce. These provisions have been introduced to remedy injustices that may result from the enforcement of the former "separation of property" regime, which tended to be in favour of the husband.

Article 268

This amendment introduces the provision that "spouses are equally liable for debts related to the marriage."

Article 336

With this amendment, the provision that "the vote of the father is to be decisive" when exercising the rights of guardianship (for children) stipulated in Article 263 of the former Code has been deleted from the text of this article and both the mother and the father have been accorded equal rights in this matter.

Article 416 (Former Article 366)

With this amendment, not only men but also women are obliged to assume the responsibility of guardianship when appointed as a guardian.

Article 661 (Former Article 598)

With the amendment, the provision which provides that "in case none of the sons wish to manage the inherited business, the daughters with legal capacity may manage the inherited business" has been eliminated. Thus, the provision that was in favour of the sons in terms of the legal capacity to manage the inherited business is no longer in force.


II. Amendments to enhance the right to freedom of association and peaceful assembly

To "review the legislation on the freedom of association and holding meetings and demonstration marches" is one of the medium term commitments contained in the Political Criteria Section 2.1.2. (Freedom of Association and Peaceful Assembly and the Civil Society) of the NPAA. The relevant provisions on the enhancement of the right to the freedom of association and peaceful assembly are highlighted in the following articles.

Article 57

A new provision has been introduced by Article 57 which reads as "Anyone may establish an association without prior permission. Persons establishing associations must have the legal capacity to act." This provision is in alignment with Article 33 of the Constitution.

Article 63 (Former Article 63)

With the amendment to this article, the provision that "no one can be forced to become a member of an association and no association is obliged to accept a member" has replaced the former provision which reads as "the association may always accept new members. A member has the right to resign from membership with a prior notification of six months." This amendment is in alignment with Article 33 of the Constitution.

Article 67 (Former Article 65)

With this amendment, a new provision has been added which provided that objections may be raised for cases of expulsion from membership that have not been referred to in the regulation.

Article 68

With the amendment, new provisions have been introduced on associations. According to these provisions, all members have equal rights. The association may not discriminate among its members on the basis of language, race, colour, gender, religion and sect, family, group and class; practices that undermine equality or discriminate in favour of certain members for these reasons are not allowed. Every member has the right to participate in the activities and the administration of the association. This amendment is in alignment with the principle of equality stipulated in Article 10 of the Constitution. Discrimination between members of the association has thus been prohibited.

Article 79

Articles 72-86 introduce new provisions with respect to the administrative bodies of associations. With the general assembly. However, the absence of the government observer shall not hinder the convening of the meeting" has been added to this article. This provision constitutes a more liberal approach to associations.

Article 90

A new provision has been added on intermediate sanctions that may be imposed on an association, which undertakes activities outside its aims. The Chief Public Prosecutor may decide on the suspension of the activities of the association. Short of the dissolution of the association, intermediate sanctions may be imposed in cases where the association undertakes activities outside of its aims. This provision makes the dissolution of an association more difficult.

Article 91

Articles 90 and 93 introduce a number of provisions, which regulate the activities undertaken by associations. With the amendment, associations may undertake international activities to realize the aims contained in their regulations and may establish branch offices abroad. When cooperation at the international level is deemed to be beneficial, associations established in Turkey may become members in associations and organizations established abroad, in accordance with their aims, with the permission of the Council of Ministers.

Article 92

With this amendment, in cases where cooperation at the international level is deemed to be beneficial in terms of cultural, economic and technical matters and on the basis of the principle of reciprocity, foreign associations may undertake activities, establish higher bodies or participate in higher bodies already established in Turkey with the permission of the Council of Ministers. In line with this amendment, foreign associations have been given the opportunity to be active in Turkey.

Article 93

With this amendment, individuals (natural persons) of foreign nationality that have the right to settle in Turkey may establish associations or join associations already established on the basis of the principle of reciprocity. This is not required in the case of honorary membership. In this context, foreign individuals may establish associations in Turkey or become members of associations already established.

Article 94

This amendment introduces provisions on the conditions and procedures to be observed by associations when establishing branch offices.




Article 96

Articles 94 and 98 introduce provisions on the organizations formed by associations. According to the provisions of Article 96, federations are established when a minimum of at least five associations established for the same purpose join together. Every federation is governed by a regulation. The federation gains legal personality when the notification of establishment, the regulation and the necessary documents are submitted to the highest provincial administrator. This amendment allows associations to form federations in order to pool their resources and carry out activities more effectively through coordination at the national level.

Article 97

The amendments introduce provisions on confederations. Confederations are established when a minimum of three federations join together in order to realize their aims. Every confederation is governed by a regulation. A confederation gains corporate personality when the notification of establishment, the regulation and the necessary documents are submitted to the highest provincial administrator. In this context, legal provisions have been introduced on the establishment of confederations by way of joinder of federations.

Article 101 (Former Article 73-74)

According to the provisions of the new Article 101, "foundations are propertied communities with legal personality established when natural or legal persons allot sufficient resources and rights to a particular and continuous objective". In this context, legal persons may establish foundations in the same manner as natural persons. The possession of "sufficient" resources is a condition for the establishment of foundations. The foundation also has a legal personality.

Another provision which reads as "there can be no membership in foundations", distinguishes foundations from associations.

A new provision has been added to the final paragraph, which reads as "a foundation that violates the features of the Republic as identified in the Constitution and the fundamental principles of the Constitution, the law, morality, national unity and national interest, or supports the members of a specific race or community may not be established" in line with the principles of the Constitution. In addition, the provision that "foundations cannot be established for ideological purposes" has been removed.

Article 117 (Former Article 81/B)

The amendment to former Article 81/B by Article 117, which reads as "Provisions on the international activities and on the establishment of higher bodies of associations are to be applied analogously to foundations", extends the liberal provisions applicable to associations to foundations as well.


III. Amendments for the protection of the weak

The following provisions in the new Turkish Civil Code introduced for the protection of the weak are relevant to the Political Criteria Section 2.1.11 (Full Enjoyment by All Individuals without Any Discrimination and Irrespective of Their Language, Race, Colour, Sex, Political Opinion, Philosophical Belief or Religion of All Human Rights and Fundamental Freedoms; Freedom of Thought, Conscience and Religion) of the NPAA.

Article 38 (Former Article 37)

The provision "the civil servant responsible for keeping personal records is directly responsible for damages resulting from inaccurate records" is no longer in force. This has been replaced with the provision that "the state is responsible directly for damages and shall recourse to compensation from the civil servant responsible for the error". This provision protects the rights of the weak.

Article 199

The new article places limitations on the right of the spouse filing for divorce to undertake legal transactions in order to prevent him or her from depriving the other of the property. This provision has been introduced in order to prevent the wife from being deprived of her right to alimony and other indemnities.

Article 304 (Former Article 304)

The amendment to Article 304 extends the rights of the mother vis a vis the father regarding the payment of the costs of pregnancy and childbirth to the mother filing a paternity suit against the father who does not recognize the child as his own. According to the amendment, even if the child is stillborn, the mother may demand the payment of expenses from the father or from his heirs. The duration of time in which the mother receives payment to meet daily expenses prior to and after childbirth has been extended to six weeks.

Article 613 (Former Article 553)

This amendment introduces the provision that in cases where all children and grandchildren refuse the inheritance, "the spouse that outlives his or her spouse may benefit from his or her share of the inheritance." The provision on the period of time allowed for the exercise of this right has also been deleted. This provision increases the protection extended to the surviving spouse.

Article 652

The amendment introduces the provision that if one of the spouses dies, and if the house or furniture used jointly by the spouses is part of the inheritance, then the surviving spouse may request that these be taken out of the inheritance so that he or she may continue to use them. This provision is also in favour of the surviving spouse.


IV. Amendments for the protection of the rights of the child

The provisions introduced by the new Turkish Civil Code for the enhancement of the rights of the child are also relevant for the Political Criteria Section 2.1.11 (Full Enjoyment by All Individuals without Any Discrimination and Irrespective of Their Language, Race, Colour, Sex, Political Opinion, Philosophical Belief or Religion of All Human Rights and Fundamental Freedoms; Freedom of Thought, Conscience) of the NPAA.

Article 182 (Former Article 148)

With the amendment to this article, a new phrase, which reads as "the interests of the child in terms of health, education and morality" has been added to the provision governing, in cases of divorce or separation, the relationship of the child with the parent who is not in custody of the child. Moreover, the amendment has introduced a provision, which allows the judge to determine the costs of care and education to be met by the parent who does not hold the custody.

Article 282 and the following articles

The sub-heading "on the establishment of lineage", which has been added to the second section beginning with Article 282, eliminates the discrimination between legitimate and illegitimate children. The provisions in this section ensure that illegitimate children are of the same legal status as legitimate children, and thus, the rights of the child are protected.

Article 292 (Former Article 247)

The amendment to Article 292, which reads as "upon the marriage of parents, the illegitimate child will be subject to the same provisions as applicable to legitimate children" facilitates the exercise of the rights of the child from the legal and administrative points of view.

Article 328

The new Article 328 stipulate that both the mother and the father are responsible to take care of the child until the age of maturity and that this responsibility continues until the child completes his or her education even after the child reaches maturity.

Article 329

With this amendment, either the mother or father who actively takes care of the child may file for an alimony suit against the other. The child may also file this suit, provided that he or she has the capacity for discretion. In this provision, no age limit has been introduced and the possession of the capacity for discretion is deemed to be sufficient for the child to file a suit. These provisions ensure the effective protection of the child.

Article 330

This article introduces the provision that the judge may make adjustments in the amount to be paid as alimony if there are changes in the needs of the child or in the living standards of the mother and the father.

Article 332

This article introduces the provision that when an alimony suit is filed, the judge will take into consideration the interests of the child when taking the necessary measures and the decisions on precautionary measures.

Article 333

The article introduces the provision that the judge may decide, even before the suit is finalized, on an appropriate amount of alimony to cover the needs of the child during a paternity suit filed against the father that refuses to recognize the child as his own if the judge decides that there is reasonable evidence in favour of paternity.

Article 334

The article introduces the provision that the judge will take the necessary measures if the mother and the father do not fulfil their obligations of alimony.

Article 454 (Former Article 397)

The amendment introduces provisions in favour of the child placed under guardianship. The provision that the child must be of "a minimum age of sixteen" in the former Article 397 on the inspection of accounts held by the guardian on behalf of the child placed under guardianship by a judge is no longer in force. In accordance with the provisions of the Convention on the Rights of the Child, the child is required to have the capacity to "form and articulate his or her views."
#113
Marriage in Turkey - Formalities
According to Turkish Marriage regulations, a Turkish national and a foreigner or two foreigners with different nationalities can be married by Turkish authorities.

Two foreigners of the same nationality can be married either by the offices of their own Country's Embassy or Consulate or by the Turkish authorities.

All marriages done by the Turkish authorities are subject to the relavant articles of the Turkish Civil Code and related regulations.

Whether they are Turkish or foreigners, Turkish relevant authorities do not conduct these marriages, unless the petitioners can provide their marriage licences issued by the proper Civil Status Registrars of his or her own Country, that they hold the nationality of, respectively.

Conditions for a legal Marriage

1- Capacity to marry: Only those persons who are of sound mental capacity to make fair judgments are allowed to marry. Mental illness is, therefore, a bar to marriage. In addition, a person must have reached the minimum age of 18 to marry.

2- Absence of consanguinity: Marriage between close relatives is prohibited.

3- Already existing marriage: Monogamy is one of the essential principles of Turkish family law. A second marriage can not be entered into unless the first is terminated.

4- Waiting period: Married women whose marriage has been dissolved cannot marry before the expiration of three hundred days from the date of dissolution. The divorce decree may also state a waiting period due to which a ex-spouse may not remarry.

5- Sickness: Certain medical conditions also constitute a bar to marriage.

Only civil marriages performed by authorized marriage officers are legally binding in Turkey.

Necessary documents for marriage:

1- Petition of the marriage. To start an action the groom and bride must file a petition of the marriage. "Evlenme Beyannamesi"

2- Passport, Identification card, birth certificate,

3- Health certificate.

4- 4 pictures belong to bride and groom.

5- Certificate of Capacity to Marry. (Single, divorce, widow or widowed.)
#114


Municipal Law

Law no: 5393,  dated 03.07.2005
(Official Gazette Nr. 25874, dated 13.07.2005)

FIRST SECTION
General Provisions

FIRST CHAPTER
Object, Scope, Definitions

Object
ARTICLE 1- The object of this Law is to regulate establishment, organs and management of municipalities as well as working procedures and principles, functions, powers and responsibilities of the same.

Scope
ARTICLE 2-  This Law covers the municipalities.

Definitions
ARTICLE 3-The terms listed below shall have the following meanings wherever they are used in this Law;

a)   Municipality: A corporation established in the statute of public legal entity having powers of self-government (autonomous) both administratively and financially, to meet the local and common requirements of the county inhabitants and the decision maker of which is elected by the electors.
b)   Municipal organs; Municipal Council, Municipal Committee and Mayor
c)   County; Any settlement area with municipality                                 
d)   Parish; An administrative unit within the municipal boundaries where people leave together in neighbourly relations and have similar needs and priorities.                                                                   

                                                                      SECOND CHAPTER
                                                           Establishment of Municipalities and Boundaries

Establishment
ARTICLE 4- Municipality can be established in the settlement areas where the population is 5,000 and above. It is mandatory to establish Municipal Corporation in the provinces and districts.                 

It is not allowed to establish municipality in the drinking and utility water basins and other places under environmental protection and settlement areas at less than 5,000 meters distance from the municipal boundaries.

                                             

In order for the villagers to establish municipalities through incorporating various quarters of villages, the inhabited area shall be at most 5,000 meters away from the central administrative unit and the total population should be 5,000 or above.

Where it is decided by the board of aldermen of one or more than one village or an application is made in writing to the territorial government by at least one half of the electors plus one, or where it is deemed necessary by the governor; upon notification of the governor, the local election committees shall collect the votes of the electors registered in the villages or quarters within fifteen days and report the results to the governor's office with an official report.

The file proceeded shall be sent to the Ministry of Interior together with the remarks of the governor. The municipality shall be established in that place upon receipt of approval of the State Council under a joint decree.

Upon proposal of the Ministry of Interior, a municipal corporation can be established in a   new settlement area with a population 5,000 or above, under a joint decree.

Demarcation of boundaries
ARTICLE 5- Boundaries of a newly established municipality shall be determined within six months as of the date of establishment in the following manner;

a)   The areas such as agricultural fields, wine yards, gardens, fields, meadows, pastures, summer pasturages, and the land covered with olive and oak trees, and bush-wood, as well as sea sides and beaches shall be included within the municipal boundaries;
b)   It is a basic rule to consider the fixed points such as river, hillside, road etc. as the line of demarcation during determination of the municipal boundaries;
c)   The rights of the villagers and the inhabitants of the neighboring counties traditionally benefiting from the pasturages, meadows, woody land, fountainhead and places of excursion within the municipal boundaries shall be reserved. An annotation shall be put in the demarcation report for these rights.
d)   The known names of the demarked points shall be noted in the demarcation report. Additionally, the sketch prepared by the authorized cadastre official shall be attached to the demarcation report.

Finalization of Boundaries
ARTICLE 6- The municipal boundaries shall be finalized with approval of the chief executive officer of the province (governor) upon the decision of the Municipal Council and receipt of appropriate opinion of the county governor.

The boundaries, the demarcation of which is completed shall be shown on the spot and a report containing the details shall be prepared by the concerned parties. One copy of the decision and documents indicating the borderline shall be sent to the municipality, the local land registry office, special provincial administration (local government) and territorial governor.



The boundaries, which are finalized by this way, shall not be changed for a period of five years unless there is an imperative reason.

Resolution of disputes related to boundaries
ARTICLE 7- In case of dispute between a county and village(s) within the provincial territory, the opinion of the Municipal Council, village aldermen and the local governor shall be referred to by granting a response period of thirty days. The Governor is the authority to decide on the dispute or where a boundary is ought to be, upon review of the declared opinion.

The opinion of Great City Municipal Council shall be deemed necessary in the disputes seeking change of district and sub-municipal boundaries within the boundaries of Great City Municipality.

The provisions of Province Administration Law Nr. 5442 shall be applied in the disputes which require change of boundaries of a province or district.


Incorporation and Joining
ARTICLE 8-
In order for county, village or certain parts of these places to join another county, the  distance between the inhabited areas of these places and the county to be joint shall be 5.000 meters or less.

In case a residential area of a county or village, or their   parts are incorporated into a residential area of a neighboring county, or in case the distance between these places decreases below 5.000 meters and more than one of the half of the electors residing in these places apply for joining another county, voting shall be made related to this application in village, county or parts hereof willing to join, without applying to votes of the inhabitants of the county to be joined. If the voting result is positive,  the document related to the application shall be  sent to the joined municipality by the Governor. The Municipal Council shall be expected to declare its decision on such application within thirty days as of the receipt of the said document. Joining shall be realized upon approval of the Municipal Council. Incorporation and joining in great cities shall be determined in the great city municipality council upon opinion of municipal council of the county to be joined or the sub-municipality. Article 6 shall be referred to for the new boundary which is formed by joining and the Ministry of Interior shall be notified of the result.

It is a basic principle not to lower the population of the country below 5.000 while incorporating certain parts of a county into a neighboring county or while establishing a new county or village.

In order to establish a county through separation in places where there is great city municipality,  population of the county should not decrease below 100.000 and population of the county to be established shall be not less than 50.000.

In joinings realized pursuant to this article, a protocol is prepared between the joining county or its parts and the joined village or county, to contain the details related to transfer and distribution  of movable and immovable property, rights, claims, debts.

The provisions of article 4 shall be applied in the transactions which involve incorporation and joining, but are not covered under this article.




Parish of a county and its administration
ARTICLE 9- A parish is administered by local governor( mukhtar) and board of aldermen.

Formation, dissolution, joining, division, demarcation or change of boundaries of a parish within municipal boundaries shall be subject to the approval of the governor upon decision of the Municipal Council and appropriate opinion of county governor.

The chief aldermen shall be committed to determine common requirements of the inhabitants with the participation of the volunteers, to improve the living standards of the parish, and to carry on relations with the municipality and other public institutions and corporations, as well as to declare opinion on the matters which concerns the parish, to cooperate with the other institutions and to perform the other duties conferred upon by the laws.

The municipality shall render the necessary support and assistance in kind to meet the requirements of the parish and the board of aldermen, shall consider common needs of the inhabitants in its decisions, ensure performance of services in line with the requirements of the inhabitants of the parish.

Change of county's name
ARTICLE 10- The name of a county can be changed only with the approval of the Ministry of Interior upon decision of majority (3/4) of the members taking part in the Municipal Council, subject to the appropriate opinion of the governor.

Termination of legal entity status
ARTICLE 11- Where deemed necessary pursuant to the development plan and infrastructure services, the legal entity status of the municipalities and villages, which become closer (less than 5.000 meters) to the provincial boundaries or municipal boundaries with population 50.000 and above, shall be abrogated and the municipality or village shall be incorporated into the province or district municipality upon proposal of the Ministry of Interior, through publication of a joint decree in the direction of the opinion of the Supreme Council. The parishes of the municipality, which is no longer in the status of legal entity, shall become the parishes of the incorporated municipality. Additionally, the movable and immovable properties, rights, claims and debts of the municipality and village declared to be non-legal entity, shall be transferred to the municipality joined in.

The municipalities with population less than 2.000 shall be transformed into a village under a joint decree upon proposal of the Ministry of Interior and receipt of the appropriate opinion of the Supreme Council. The liquidation of the municipality declared to be non-legal entity shall be performed by the special provincial administration (local government). The movable and immovable properties, rights, claims and debts of this municipality shall be transferred to the related village legal entity. The non-coverable portion of the debts shall be undertaken by the special province administration and be notified to İller Bank (Provincial Bank) by the Governor. This amount shall be deducted from the portion allocated for the municipalities from the total tax income recorded in the general budget of the following month and transferred to the account of the special province administration by İller Bank.

Enforcement of decisions and determination of population
ARTICLE 12-
Article 12-The decisions mentioned in articles 4, 6, 7, 8 and 9  shall be put into force on the first day of January, following the finalization of these decisions. In the places where a municipal corporation is established according to Article 4, elections shall be made pursuant to article 29 of the Law Nr. 2972 related to Election of Local Administrations, Parish Administrations and Board of Aldermen.

The decisions related to incorporation and joining mentioned in Article 8, abrogation of parish administration mentioned in Article 9, abrogation of legal entity status of a municipality or village mentioned in Article 11, or transformation of a county into a village, shall be applied in the first elections of local administration and the elections shall be made according to the new status of these places.

The populations of the settlement areas shall be determined by the Directorate of State Statistics Institute in consideration of the relevant provisions of this Law.

Law related to Fellow-citizenship
ARTICLE 13-Everyone is a fellow-citizen of the county which he lives in. The fellow-citizens shall be entitled to participate in the decisions and services of the municipality, to acquire knowledge about the municipal activities and to benefit from the aids of the municipal administration. It is a basic principle to extend aid without hurting human feelings.
The municipality shall perform necessary activities to improve the social and cultural relations between the fellow-citizens and to preserve cultural values. While performing these activities, it shall take measures to enable participation of the universities, proficiency groups in the status of public institution, trade unions, non-governmental organisations and experts.
Each person, who is settled or domiciled within the municipal boundaries or has relation with the fellow-citizens, shall be liable to obey the decisions, orders and notifications of the municipality based on laws, and to pay his portion of taxes, levies, duties, support and participation shares.


                                                      THIRD CHAPTER

                                    Functions, Powers and Liabilities of  Municipality

Functions and liabilities of municipality

ARTICLE 14- The municipality can undertake the following works to serve a common purpose;

a)   Providing services of urban infrastructure such as development of the region, water and sewage system and transportation; geographical and urban data systems; environment and environmental health, cleaning and solid waste; security forces, fire brigades, emergency aid, relief services and ambulance; city traffic; funeral and cemetery services; forestry, parks and   green areas; housing, cultural and artworks, tourism and presentation, youth and sporting activities; social and aid services; marriage ceremonies, professional trainings; and services aimed at development of economy and commerce. The Greater City Municipalities and the municipalities having population more than 50.000 shall open houses for women and children welfare.
b)   Opening of  pre-elementary school education centers; maintenance and repair of school buildings belonging to the Government; procurement of all kinds of equipment/material for this purpose; opening and operation of health facilities; protection of cultural and natural resource and places having historical value; repair and maintenance of such places; reconstruction of those ruined same as original. In case of need, providing  equipment and support to students and amateur sports clubs, arranging amateur sports matches, giving awards upon decision of municipal council to sportsmen who have been successful in matches performed home or abroad or who have received a degree in matches.Being engaged in food banking.

           The municipalities may undertake other duties and services which are not delegated to the other public institutions and corporations by the laws.
            The priority of services shall be determined in consideration of the financial state of the municipality and the urgency of service.
            The municipal services shall be rendered in the most appropriate manner at the places nearest to the citizens. It is a basic principle to adopt a procedure most suitable for the disabled and old people as well as for those in destitute and with limited income.
           The duties, responsibilities and powers of the municipality shall be limited to the municipal boundaries.
            Municipal services may be provided at contigous places upon decision of the municipal council.
           Provisions of the Law Nr. 4562 For Organized Industrial Zones shall be reserved. 

Powers and privileges of the Municipality

ARTICLE 15- The powers and privileges of the municipality are as follows;
a) To carry out all kinds of activities and venture in order to meet the common requirements of the inhabitants of the county.

b) Within the limits of authority conferred upon the municipality by the laws, to publish regulations, to give orders, to take and to implement restrictive measures, to impose the punishments defined in the laws.

c) To grant the permissions and to issue the licenses deemed necessary in the laws for the real persons and legal entities.

d) To impose, assess and collect the taxes, duties, levies, support and participation shares due to the municipality pursuant to the special laws; to undertake assessment and collection of the amounts payable according to the provisions of the special law excluding the taxes,charges and levies against the services such as natural gas, water, waste water.
e) Without prejudice of the vested rights; to supply utility and industrial water; to enable disposal of waste water and rain water; to construct or let others to construct and operate plants for such purposes; to enable the facility of benefiting from spring waters, or to let others to undertake operation of spring waters.

f) To engage in public transport activities; to establish and operate all kinds of public transport facilities including procurement of bus, sea and water carriers and construction of tunnels and railway system.

g) To render all kinds of services related to collection, transportation, decomposition, recirculation, removal and storage of solid wastes.

h) In order to perform the locally required public services, to acquire, immovable property within the municipal boundaries and contiguous areas, to deal with expropriation, sale, lease, exchange, allocation of the same; to institute limited real rights on this property.

i) To borrow loans and to accept donations.

j) To build, operate wholesale and retail sale markets, bus terminals, exhibition centers, slaughterhouses yacht harbors and, quays according to the relevant legislation and to give permission to the real persons and legal entities to do the same.

k) Excluding those related with taxes, levies and charges, to make agreements for amicable settlement of the disputes subject to claim .

l) To issue license for non sanitary institutions, public resorts and entertainment places and to control the same.

m) In order to improve and take under control regional economy and commerce, to restrict the activities of the street sellers who work without license; to transfer the foodstuff confiscated by the municipality to the nutrition banks if not taken back within two days against payment of fine; to distribute the other stuff to the people in destitute if not taken back within thirty days against payment of fine.

n) To bring standards to the bill boards and introductory door-plates.

o) To assemble non sanitary workplaces, entertainment places and other workplaces that have an effect on  public health and environment in a certain part of the city, to determine excavation and debris disposal areas; storage areas for liquified petroleum gas (LPG); storage and marketing areas for construction material, wood, coal and scraps: to take the necessary measure in order to avoid environmental pollution during transportation of the same.
p) To determine all kinds of vehicles and mass transportation vehicles operated on land, sea, water and rail as well as the number of cabs, ticket prices and tariffs, schedule and route; to determine, operate, rent out wayside stations and parking places for vehicles on highway, land, road, street, square and similar places or let the same be operated; to carry on all of the work required by traffic regulation provided by the laws to the municipalities.

Licensing and control of first class non-sanitary institutions mentioned in paragraph (1) shall be undertaken by the special province administration in places outside the boundaries of great city municipality and central provincial municipality.

Pursuant to decision of the Ministry of Interior and based on appropriate opinion of the Supreme Council, the municipalities may transfer the services mentioned in paragraphs (e), (f) and (g) for a period not exceeding forty-nine years by granting franchise; the municipalities may undertake mass transportation services either by issuing licenses or by renting out mass transportation lines or purchasing service according to the principles set-forth in Article 67, provided  that this may not constitute a privileged right or monopoly.

Under the decision of the council, the great city municipalities within the provincial boundaries, municipalities within the boundaries of province and contiguous areas the population of which is above 10.000, may undertake, gratuitously or against payment, infrastructure works of the tourism, health, industrial and commercial investments and educational institutions, such as supply of water, thermal water, natural gas, electricity and construction of sewage system, roads etc. for a period of ten years without charging any interest; or may assign others to render these services; or may participate in the plants constructed for this purpose; or may allocate land, gratuitously or at a low price, for the projects aimed at promoting health, educational, social and tourism services subject to the approval of Ministry of Interior.

The municipality may engage in popular vote or public research activities to find out the opinion of the inhabitants of the county.

Those who commit offence against the municipal property shall be assumed to have caused damage to the State property. The provisions of article 75 of the Public Procurement Law Nr. 2886  shall also be applied to immovables of municipality .

The income obtained by the municipality through indebtedness on project basis, conditional donations, the properties physically used in public services and taxes, levies and charges collected by the municipality shall not be subject to attachment proceeding. 


Exemptions granted to the municipalities
ARTICLE 16- The immovable property of the municipality used in public services or for public benefit without expectation of income as well as utilization and construction works of the same, shall be exempted from all kinds of taxes, levies, charges and participation and support shares.


           
                                                                 SECOND SECTION
                                                                     Municipal Organs
                                                                   FIRST CHAPTER
                                                                     Municipal Council

Municipal Council
ARTICLE 17- Municipal Council is the decision making organ of the municipality and is formed by the members selected according to the principles and procedure set-forth in the relevant law.

Functions and powers of the Municipal Council
ARTICLE 18- Following are the functions and powers of the Municipal Council;
a)   To discuss and approve the strategic plan, investment and work programs, activities of the municipality and performance scale of the personnel.
b)   To approve the budget and final accounts, to make transfers in the budget between the units subject to corporate coding and first levels of functional classification.
c)   To discuss and approve the development plans of the municipality; to approve the environmental development plan for the great city municipality and the provincial municipalities.
d)   To decide on indebtedness of the municipality.
e)   To decide on sale, purchase, exchange, allocation, alteration of allocation method of immovable property or removal of allocation whenever immovable property is deemed unnecessary in public services; or renting out immovable property more than three years and instituting limited real rights on these property for a period not exceeding thirty years.
f)   To determine the price tariff for the voluntary services which are not subject to collection of tax, levy, charges or participation share pursuant to the laws.
g)   To accept conditional donations.
h)   To decide on amicable settlement, accepting and renunciation of the claims of the municipality the amount of which is above five thousand YTL, excluding taxes, levies and charges.
i)   To decide on incorporation of enterprises within the scope of budget and partnerships subject to Turkish Commercial Code; or to give approval for dissolution of these partnerships, capital increases and establishment of real-estate investment partnerships.
j)   To decide on granting of franchise on behalf of municipality, realization of investments by the municipality on built-operate or built-operate-transfer basis; privatization of the companies, enterprises and participations of the municipality.
k)   To elect the chairmanship council, board members and the specialized committees.
l)   To assign, cancel and alter the positions of the personnel employed by the municipality and the associated institutions according to adopted norms.
m)   To approve the regulations to be published by the municipalities.
n)   To name the squares, streets, roads, parks, premises and similar others, to approve formation, dissolution, incorporation of parishes, and to determine or change the boundaries of the same; to approve the logos, pennons and similar other means used by the municipality for promotional purposes.
o)   To decide on formation of unions with other parish administrations, to join or depart from the existing ones.
p)   To decide on establishment of cooperation with the local and foreign municipalities with the permission of the Ministry of Interior; institution of urban fellow-citizenships; organization of activities and development of projects in cultural and sporting field in order to promote the economical and social relations; allocation of land and construction, rent of buildings and facilities for this purpose.
       r) To issue honorary fellow-citizenship certificate.
       s) To take decision for resolution of the disputes between the mayor and the member of municipal committee.
       t) To decide on extension of municipal services to the contiguous areas.
       u) To discuss and approve the construction plans of the municipalities, which are prepared in compliance with the development plan.

Chairmanship Council
ARTICLE 19-The Municipal Council shall convene spontaneously on the fifth day following the announcement of the election results under the chairmanship of the mayor. In this meeting, the Council elects by balloting first and second vice chairman and at least two clerical members to serve during the first two years. The Chairmanship Council to be elected upon expiry of first two years shall hold office until the first local elections.

The election of chairmanship council is completed within three days.
In case of absence of the mayor in the Council meeting, the first vice-chairman shall substitute his place; in case of absence of the latter, the second vice-chairman shall chair the meeting. However, the Council shall hold the meeting during which the annual activity report is discussed under the chairmanship of the vice-chairman.

New member shall be nominated in case of vacancy in Chairmanship Council to serve during the remaining period.

The Chairman of the Council shall be liable to ensure orderly performance of duties by the members. The principles and procedures related to operations of the Council and quorum shall be adapted in a regulation to be published by the Ministry of Interior. 

Meetings of the Council
ARTICLE 20-The Municipal Council shall hold its meeting during the first week of each month, at a previously specified date.
The Council may suspend working on days of official holidays. Municipal council may take a decision of holiday each year for one month.
The duration of the meeting coinciding with budget negotiations shall at most be twenty days, whereas for other meetings, this period is specified as at most five days.

In cases where it is decided by the chairman of the Council to hold the meeting at a place other than the usual place of meeting within the municipal boundaries, a notification shall be sent to the members informing the change of meeting. Also, the date and place of meeting shall be announced to the inhabitants of the county in the regular manner.

The meetings of the Council shall be open to public. Upon justified proposal of any one of the members, the Council may agree to hold a close session with the approval of absolute majority of the members attending the meeting.

The discussions taken place in the meeting shall be recorded in the minutes by the persons assigned to carry out such duty. The minutes of meeting shall be signed by the chairman and the members performing the duty of clerk. Audio-visual recording of the meetings can also be made pursuant to the decision of the Council.

Agenda
ARTICLE 21-The agenda of the meeting shall be determined by the Mayor and notified to the members at least three days before the meeting. Also, public announcement shall be made through various means.

The mayor or members of the Council may propose inclusion of other subjects in the agenda related to the operations of the municipality at the first meeting each month. This proposal shall be included in the agenda if approved by absolute majority of the attendees.
Offers of the members and  issues on the agenda other than development issues and annual budget may be adjudicated through discussion of municipal council upon approval of the absolute majority of the attendees, without referring to the commissions.

Meeting and Quorum
ARTICLE 22- The Municipal Council shall convene with the absolute majority of the entire members and take its decisions with the absolute majority of the attendees. However, the quorum required to take decision shall not be less than one forth of the entire number of the members. In case of equal division of the votes, the chairman shall have the casting vote. In case of equal division of the votes during balloting, the voting shall be repeated and if the result is still the same, then the chairman shall draw lots.
If the meeting convenes with narrow margin, the chairman shall adjourn the meeting by fixing the date and hour of the next meeting to be hold latest within three days. The quorum of the next meeting shall not be less than one forth of the entire members.

The provisions of second subsection shall be applied if it is determined during the inspection to be made upon request of the chairman or any one of the members that the quorum is not formed in the meeting.

The members shall use their votes personally. The members, who are physically not able to participate in the balloting, shall be entitled to use their votes by appointing a proxy.

The voting can be made by balloting, hand voting or calling names. The voting shall take place by declaring approval, rejection or abstention.

The decisions shall be signed by the chairman and the members acting with the capacity of clerk and distributed to the members during the next meeting.


Finalization of the decisions passed by the Council
ARTICLE 23-The decisions of the Council, which are determined to be contrary to the laws, may be returned to the Council by the Mayor within five days for re-negotiation.

The decisions not worthy to be re-discussed and those approved upon insistence of the absolute majority shall be finalized accordingly.

The Mayor may apply to administrative court within ten days against the decisions which are finalized upon insistence of the Council.

Upon finalization of the decisions taken by the Council, a brief announcement shall be sent to the territorial government  within seven days . The decisions which are not sent to the territorial government shall not be enforced.

The chief of the territorial government may apply to administrative court against decisions that are found to be contrary to the laws.

Summary of the finalized decisions of the council shall be announced to public within seven days through appropriate means.


Specialized Committees
ARTICLE 24- The Municipal Council may form specialized committees comprising at least three, at most five persons to be selected among its members.The term of the committee not to exceed one year shall be mentioned in the same council decision.
The specialized committees shall be formed in proportion of number of members hold by each political party and independent members in the Council to the absolute majority of the entire members in the municipal council. In the provincial and district municipalities and also in municipalities with population more than 10,000, committees shall have to be formed to deal with planning, budgeting and development activities.
Following the meeting of the Council, the development committee shall finalize the tasks conferred upon within latest ten business days, whereas other committees shall be required to perform their duties within five business days. In case the committees fail to present their reports to the Council at the end of this period, the subject shall be directly put on the agenda by the chairman of the Council.

The works within the competence of these specialized committees shall be presented to the Municipal Council to reach final decision after being discussed in these committees.
The executive officer of parish (mukhtar) and the executives of the public institutions in the provinces, proficiency groups in the nature of public entity, universities, trade unions and representatives of the non-governmental organizations may participate in the meetings of the specialized committees where the subjects within their field of activity and competence are discussed and may declare their opinion. However, they shall not be entitled to give vote during these meetings.
The committee may provide consultancy service from the experts during the studies.
The reports of the committee shall be accessible and  announced to public by various means and supplied to those who are willing to have these reports by the municipal board in return for payment of price not to be more than its cost.

Auditing Committee
ARTICLE 25-The provincial and district municipalities and the municipalities with population more than 10,000 may form an auditing committee comprising at least three, at most five persons to be selected among their members by way of balloting for auditing of the income and expenditure, accounts and transactions of the municipality during the previous year, at meeting to be realized each january. The auditing committee shall be formed in proportion of number of members hold by each political party and independent members in the Council to the absolute majority of the entire members in the municipal council.

This committee shall carry out its activities at an office indicated by the Mayor and may provide support from the personnel of the public institutions and experts and specialized corporations for realization of these activities.
The fees payable to the experts or specialized corporations are determined by the Municipal Council.
A daily payment shall be made which is to be determined by the municipal council not to exceed the amount to be found by multiplying indicator numbers of (3000) for experts appointed for the meetings of auditing committee in great city municipalities, (2000) in other municipalities and (1000) for those appointed outside public institutions and establishments, by monthly coefficient applied to government officials.The number of people and days related to appointment under the command of auditing committee shall be determined by the municipal council.The qualities to be looked for in the experts shall be regulated in the regulation related to working of municipal council.
The auditing committee may request all kinds of information and documents from the divisions and subsidiaries of the municipality. These requests shall be met without any delay.
The committee shall complete its studies within forty five days and submit its report to the chairman of the Council latest until the end of march.
The chairman of the Council shall be entitled to notify the authorized bodies of the subjects which constitute offense.



Means of access to information and auditing
ARTICLE 26-The Municipal Council shall exercise powers of obtaining information and performing auditing duty through assessment of activity report,auditing committee and by directing inquiries and motions and resuming general negotiations.
        The members of the Municipal Council may ask verbal or written questions to the chairmanship of the Council about the activities of the municipality by bringing proposals.         
        The questions shall be answered verbally or in writing by the Mayor or by the person assigned by him.
        Start of general negotiations may be requested by at least one third of the Council members on the matters related to the operations of the municipality. This proposal cannot be put on the agenda unless accepted by the municipal council.
        If the clarifications given in the activity report of the previous year are found insufficient by the three fourths of the entire number of Council members, then this fact  recorded in the minutes shall be submitted to the territorial governor by the vice-chairman of the Council.
       The governor shall send this file to the State Council by declaring his own opinion.
       If the decision declaring the activities of the municipality insufficient is found appropriate by the State Council, the mayor shall be dismissed from office.
      A motion may be directed to the mayor with the signature of at least one third of the entire number of Council members. The motion can be put on the agenda by the votes of absolute majority of the entire number of Council members and may only be discussed after lapse of three full days.
     The motion shall be finalized according to fourth subsection.

The cases where the Chairman and members of the Council are excused from participating the negotiations
ARTICLE 27-The Chairman and members of the Council shall not participate especially in the negotiations during which the matters related to second degree blood and affinity relatives are discussed.


The liabilities of the Chairman and members of the Council
ARTICLE 28-The Mayor may not engage, directly or indirectly, in brokerage or representation activity or enter into contract with the municipality or its subsidiaries during the office period or subsequent two years. As for the Council members, this period is specified as office period plus subsequent one year.

Termination of membership in the Council
ARTICLE 29-The membership in the Council shall spontaneously terminate upon decease or resignation of the member. The member shall submit the resignation letter to the Mayor to be presented to the acknowledgment of the municipal council.

                      The membership of any member, who fails to participate in the meetings for three consecutive days or half of the meetings held in a year without legitimate reason or excuse, shall be cancelled subject to the decision of the absolute majority of the entire number of members by referring to the defense of the absentee.

                    In case of loss of qualifications required for nomination to membership, the Supreme Council may decide on cancellation of membership upon notification made by  the Governor.


Dissolution of the Municipal Council
ARTICLE 30-The Municipal Council is dissolved by the decision of State Council upon notification made by the Ministry of Interior ;

a)   if it fails to perform the duties conferred upon by the Law and if this situation leads to a pause or delay in the works of the municipality
b)   if it takes decisions on political issues not related to the duties of municipality
If it deems necessary, the Ministry of Interior shall also request postponement of the meetings until a decision is made, with a notification related to dissolution of the council. The State Council shall adjudicate this issue within one month at the latest.

New council  nominated in case of dissolution of the council in this way shall serve during the remaining period.

Performing the remaining duties of dissoluted council

Article 31-

a) If the Supreme Council decides on dissolution or postponement of  meetings of the Council,
b) If  more than one half of the entire number of the members are arrested,
c)   If the entire number of Council members drops down to half after substitution of alternate members,
d)   If the activities are suspended for a definite time,

The duties of the municipal Council shall be performed by the official members of the municipal committee until the Council becomes operative again or the election is renewed.

Attendance fee and leaves
ARTICLE 32-The chairman and members of the Council shall be paid an attendance fee on daily basis for each meeting they have participated; the amount of fee is determined by the Council. This fee may not exceed one third of the daily amount of the monthly gross wage payable to the Mayor pursuant to Article 39. The number of days subject to payment of attendance fee may not be more than the number of meeting days declared in articles 20, 24 and 25. More than one attendance fee for the same day shall not be paid to the members of the council.
                       The Council members shall be regarded absent with permission during the illness period. Additionally, the Council may grant leave to the members upon excuse provided that this absence period may not exceed half of the meeting period in a year.



                                                                SECOND CHAPTER
                                                                   Municipal Committee

Municipal Committee
ARTICLE 33-The Municipal Committee comprises of;
a)   In the provincial municipalities and municipalities with population more than 100.000;seven members three of whom are to be elected each year by balloting among the members of the municipal council and two members to be nominated each year by the Mayor among the heads of units and among the chief of financial services,
b)   In other municipalities,five members, two of whom are to be elected each year among the members of the municipal council to serve for a period of one year and one member to be nominated each year by the Mayor among the heads of units and among the chief of financial services.

         In the meetings held in the absence of Mayor, the vice–chairman or the Committee member to be appointed by the Mayor shall preside at the Committee.

        The head of relevant units may be invited to the meting by the Mayor to declare opinion on the subject in the agenda, without having the right of casting a vote.

Functions and powers of the Committee
ARTICLE 34-Following are the functions and powers of the Committee;
a)   To submit opinion to the municipal council upon review of the strategic plan, annual work program, budget and final accounts.
b)   To decide on expropriation works covered under the annual work program and to ensure implementation of these works.
c)   To determine the scope of expenditure in consideration of the unforeseen expenses.
d)   To make transfers in the Budget, between the second levels of the functional classification.
e)   To impose the penalties stipulated in the laws.
f)   To decide on liquidation and amicable settlement of the claims of the municipality , excluding taxes, levies and charges.
g)   To apply the decisions of the Council related to purchase, exchange and allocation of immovable property; and to decide on lease of the same for a period of at most three years.
h)   To determine the opening and closing hours of the public places.
i)   To perform the other duties conferred upon the Municipal Committee by the laws.



The Meetings of the Committee
ARTICLE 35-The Municipal Committee shall convene at least once in a week at a previously notified date and place. The Mayor may call the Committeefor a meeting in urgency. The Committee shall convene with the absolute majority of the entire members.This provision shall also be applied in meetings to be made as a tender committee according to the Public Procurement Law Nr.2886.  In case of equal division of the votes the chairman shall have the casting vote. The members shall not abstain from voting in the elections.

The agenda of the Committee shall be prepared by the Mayor. The Committee members may propose an article to be added in the agenda subject to the approval of the chairman. The subjects, which are not put on the agenda by the Mayor, may not be discussed in the meeting.

The subjects in the agenda shall be discussed and finalized within one week.
The decisions taken during the Committee meeting shall be signed by the chairman and the members attending the meeting. Those who oppose to these decisions shall declare their justifications as well.

The Chairman and members of the Committee shall not participate especially in the negotiations during which the matters related to second degree blood and affinity relatives are discussed.


Allownace of Committee members
ARTICLE 36-In the municipalities with population up to 10.000, the chairman and members shall be paid a monthly gross salary corresponding to the amount to be calculated through multiplication of indicator figure 3.500 by monthly coefficient declared for the Government officials; in the municipalities with population from 10.001 to 50.000 the indicator figure shall be considered as 4.500; in municipalities with population from 50.001 to 2000 as 6.000 and in municipalities with population more than 200.001, the indicator figure 7.500 shall be to be considered during the calculation of the allowance. Half of this amount shall be paid to the Committee members who are in the category of government official.


                                                        THIRDCHAPTER                                                                  Mayor

Mayor
ARTICLE 37- The Mayor is the head of municipal administration and municipal institution in the statute of legal entity. The Mayor shall be elected according to the principles and procedures set-forth in the relevant laws.

The Mayor may not take part in the management and auditing organs of the political parties during his service period in the municipality; also may neither be nominated as the executive of the professional sporting clubs nor may take part in the management of these clubs.




Duties and powers of the Mayor
ARTICLE 38-The following are the duties and powers of the Mayor;
a)   As the highest executive body of the municipal organization, to direct and manage the municipal corporation, and to protect the rights and interests of the municipality.       
b)   To manage the municipality according to the strategic plan, to develop corporate strategies of the municipal administration, to prepare the budget, to direct municipal activities and to determine scale of  performance on the basis of these strategies; and to undertake implementation, follow-up and assessment of the same; to submit report to the Municipal Council related to these activities.
c)   To represent the municipality before the Government offices and courts with the capacity of plaintiff or defendant or to appoint counsels for this purpose.
d)   To preside the Municipal Council and Municipal Committee.
e)   To manage the movable and immovable properties of the municipality.
f)   To follow-up and collect the income and receivables of the municipality.
g)   To conclude contract by obtaining the approval of the authorized organs.
h)   To ensure implementation of decisions taken by the Municipal Council and Municipal Committee.
i)   To implement the budget, to give approval for transfers between the budget items that are beyond the authorization of the Municipal Council and Municipal Committee.
j)   To appoint personnel of the municipality.
k)   To inspect the municipality and the subsidiaries.
l)   To accept unconditional donations.
m)   To take necessary measures for peace, welfare, health and happiness of the inhabitants of the county.
n)   To use the appropriations reserved in the budget for the poor people and those who are in destitute; to carry out the services in favor of the disabled and to construct houses for disabled.
o)   To use the appropriations reserved for represenatation and entertainment expenses.
p)   To undertake other duties and use powers conferred upon the municipality by the laws without need to obtain the decision of the municipal council and municipal committee.

Personal rights of the Mayor
ARTICLE 39-The Mayor is paid a monthly gross salary corresponding to the amount to be calculated through multiplication of monthly coefficient declared for the Government  Officials by indicator figure;
a)   70.000 in the counties with population up to 10.000
b)   80.000 in the counties with population from 10.001 to 50.000
c)   100.000 in the counties with population from 50.001 to 100.000
d)   115.000 in the counties with population from 100.001 to 250.000
e)   135.000 in the counties with population from 250.001 to 500.000
f)   155.000 in the counties with population from 500.001 to 1.000.000
g)   190.000 in the counties with population from 1.000.001 to 2.000.000
h)   230.000 in the counties with population more than 2.000.001.

In calculation of this allowance in city center counties the population of which is less than 50.001, the indicator figure mentioned in paragraph (c) shall be taken as a basis.

        The fee of the mayor may not be subject to reduction during the period when he is on leave or temporary assignment, or excused due to illness.
        In case of appointment of the persons previously holding the office of Mayor to a position subject to employee's law, the period elapsed in municipal service shall be counted as civil service.
         The rights and benefits granted to the civil servants and their dependents pursuant to the Civil Servant Law Nr. 657 shall be applied also for the mayors and their dependents under the same principle and procedure.

Deputy Mayor
ARTICLE 40-The Mayor shall appoint one of the members of the municipal council as deputy mayor to act on his behalf during his absence due to reasons such as leave, illness or assignment.
         The Deputy Mayor shall possess the powers of the Mayor.
         An allowance to be calculated on daily basis over the monthly net allowance payable to the Mayor shall be paid to the Deputy Mayor during his office period.

Strategic plan and performance plan
ARTICLE 41-Within six months as of the local general elections, the Mayor shall prepare a development plan and program, as well as a strategic plan in compliance with the regional plan (if any) and an annual performance plan before the beginning of the relevant year, to be submitted to the municipal council.
               The strategic plan shall be prepared by obtaining the opinion of the universities and chambers (if any), and non-governmental organizations and shall be put into force upon approval of the municipal council.
               It is not necessary to prepare a strategic plan in the municipalities with population less than 50.000.
                The strategic plan and performance plan shall constitute the basis of the budget and  shall have to be discussed and approved by the municipal council before the budget.

Delegation of powers
ARTICLE 42- Where deemed necessary, the Mayor may delegate part of his duties and powers to any personnel of the municipality possessing the qualifications required for such assignment.


Disputes
ARTICLE 43-In case of rise of a dispute between the municipality and the Mayor, or his first and second degree blood and affinity relatives and adopted children, which requires commencement of an action, the municipality shall be represented by the first vice-chairman of the Municipal Council or in his absence, by the second vice-chairman and any other person to be appointed from their side.




Termination of office period of Mayor
ARTICLE 44-The office period of the Mayor shall spontaneously terminate upon decease or resignation of the Mayor.
                         The existence of any one of the following conditions may also result with termination: 
a)   Absence in the office for an uninterrupted period of more than twenty days without a legitimate excuse and determination of this fact by the territorial government,
b)   Loss of qualifications required to be elected,
c)   Certification of poor health conditions (illness or injury impeding performance) by a report issued from fully authorized health institution,
d)   To involve in actions and transactions leading to dissolution of the Municipal Council.

                The Mayor shall be dismissed from service with the decision of the State Council upon application of the Ministry of Interior.

Transactions to be realized upon vacancy in the post of Mayor
ARTICLE 45-In case of vacancy in post of Mayor bound to any reasons, the Governor shall call the municipal council for a meeting within ten days. The Municipal Council shall convene under the chairmanship of the first vice-chairman, or in his absence, second vice-chairman, or the oldest senior member. The Municipal Council shall nominate;
a)   A mayor in case of vacancy in the post of Mayor, or imposition of punishment restricting him from public service in such a way to exceed the election period,
b)   A deputy mayor in case of suspension of the Mayor from office or imposition of punishment restricting him from public service in such a way not to exceed election period.

             The Mayor or the Deputy Mayor shall be elected among the members of the Municipal Council by way of balloting. In the first two secret voting, attendance of two thirds of the entire members shall be required; in the third secret voting, the absolute majority shall be deemed necessary. In case of narrow margin in the final voting, a forth voting shall be made for the two nominees collecting the majority of the votes. The member who wins the majority of the votes in the forth voting shall assumed to have been elected as Mayor or Deputy Mayor. In case of equal vote, the Municipal Council shall draw lots.


                Following the election of the Deputy Mayor pursuant to paragraph (b) of first subsection, a mayor shall be nominated according to the provisions of this article in the event of vacancy in the post of Mayor due to reasons listed in paragraph (a).
                The office period of the newly elected Mayor shall be limited with the office period of the former Mayor. The Deputy Mayor shall undertake the duties of the Mayor until the election of the new mayor, or the mayor who is suspended or dismissed from office, or arrested by any reasons whatsoever, returns to office.

Until the next elections for mayor or deputy mayor, the first deputy mayor or the second deputy mayor in case of absence of the first, or the public official to be appointed by the Governor in absence of the second deputy mayor, shall perform the duties of the Mayor.
                The provisions related to dissolution of Municipal Council shall be applied in case of non-completion of elections for the Mayor or Deputy Mayor within fifteen days at the latest.

Appointing a Mayor

Article 46- In case of vacancy in the post of Mayor and failure to organize elections for nomination of the new Mayor and Deputy Mayor; in the greater city and provincial municipalities, the person to be appointed by the Ministry of Interior, in other municipalities the person to be appointed by the Governor shall perform as a Mayor. The person to be assigned should possess the qualifications  of Mayor.

                                                        FOURTH CHAPTER
                                           Common Provisions Related To Organs

Suspension from office
ARTICLE 47-The municipal organs or the members of these organs subject to investigation or prosecution due to an occupational offense, may be suspended from office as a precautionary measure until the rendition of the final judgment.
                        The precautionary measure shall be re-assessed in every two months. The precautionary measure, which seems to be not useful in terms of public interest, shall be lifted.
                        The precautionary measure seeking suspension from office shall also be lifted in case no permission is given for investigation or court decision is obtained not to prosecute, or in case of abatement of public action, or acquittal; or declaration of amnesty, or conviction of an offense not requiring suspension from office.
                      Two thirds of the monthly allowance shall be paid to the Mayor during the period of suspension and the other social rights and benefits shall be retained by the Mayor as well.


                                                              THIRD SECTION
                                                         Organization of Municipality
                                                              FIRST CHAPTER
                                          Organization and Personnel of the Municipality

Organization of Municipality
ARTICLE 48-The organization of municipality normally shall comprise of secretariat, financial services, technical services and security divisions.



                        Other divisions, such as health units, fire brigades, development and human resources, legal departments, can be formed according to the norm positions in consideration of the population, physical and geographical, economical, social and cultural characteristics of the county. The formation, dissolution or incorporation of these divisions shall be subject to the decision of the Municipal Council.

Norm positions and employment of personnel
ARTICLE 49-The rules and standards for norm positions shall be determined jointly by the Ministry of Interior and Government Employment Directorate. Norm positions shall be determined by decision of the municipal council within the framework of these principles and standarts.                         
The personnel of the municipality shall be appointed by the Mayor. The appointments made in the management and executive levels shall be submitted to the acknowledgment of the Municipal Council in the first meeting.
The municipality may employ personnel by contract in conformity with the norm positions to use in environmental, health, veterinary, technical, legal, social, economical cultural and art, data processing and communication, planning, research and development, educational and consultancy services; to hire specialist physicians, veterinarians, lawyers, engineers, analysts and programmers, architects, midwifes, nurses, technicians, experts etc. No appointment shall be made for the vacancies related to the services carried out by the contracted personnel. This personnel shall possess the qualifications required for the relevant positions.
                          The wages of the personnel to be employed by contract pursuant to this subsection shall be determined by the Municipal Council, provided that the agreed amount may not exceed 25 % of the total net amount of all kinds of payments to be determined according to Civil Servant Law Nr. 657 by taking first level of first degree as a basis for the relevant position. For position titles not set up as first degree position according to general provisions, first level of the highest position degree set up from that position title shall be taken as a basis and maximum amount of payments to be done shall be determined according to principle mentioned above. The Ministry of Interior may bring limitations considering the titles for the personnel to be employed pursuant to provisions of this subsection.
In municipalities where there is no position of lawyer, architect, engineer (construction engineer or map engineer) and veterinarian or there is no need for permanent staff for these titles since scarcity of works,in order to carry out these works, short term contracted personnel may be employed for certain days and hours of the week or month. The number of short term contracted personnel shall not be more than one for each title mentioned above and the term of contract shall not exceed calendar year. The net wage to be paid  shall not exceed half of the net amount of sum of all payments to be made for first level of first degree of position with the same title and shall be parallel to the term of working and be determined by the municipal council. No compensation shall be paid for the contracted personnel employed according to this paragraph  when the work is ended and unemployment insurance premium shall not be deposited. Social insurance and general health insurance premiums shall not be paid for those who benefit from social security institution for other works they are engaged in and the same people shall not be employed by more than one municipality or a subsidiary institution.

The personnel employed according to provisions of third and fourth subsections may neither be paid an additional fee nor be granted benefits in kind or cash in the form of wage. As for the matters, which involve contracted personnel but not covered under this Law, the provisions applicable to the personnel employed according to subsection (B) of article 4 of Civil Servant Law Nr. 657 the are applied, excluding the parts related to visa.

                         The civil servants employed by the public institutions and corporations, may be assigned to a post in the management or higher executive level upon demand of mayor and their assent or assent of their institution ,. The criteria set-forth in the subsection (B) of article 68 of the Civil Servant Law Nr. 657 shall be considered during realization of these appointments. The personnel employed in the municipalities by this way shall be considered on leave by the master institution. During the assignment period, the Municipality shall undertake the payment of all the financial rights and social security premiums and other benefits of the personnel originally paid by the master institution. The period elapsed on leave shall be counted in the promotions and retirements and those eligible for promotion shall be promoted without need to execute further transaction. Upon written request within fifteen days as of the expiry of service period, these personnel shall be appointed to their former positions within latest one month; if there is no vacancy, or a replacement is appointed, then they shall be appointed to another post which suits their position.


                          In the municipalities, where a Mayor holds office according to norm positions, he may appoint more than one Deputy Mayor among the members of the Municipal Council irrespective of the standards. As follows; i) one deputy mayor in the municipalities with population up to 50.000 ii) two deputy mayors in the municipalities with population between 50.001-200.000 iii) three deputy mayors in the municipalities with population between 200.001-500.000 iv) four deputy mayors in the municipalities with population 500.000 and over. The members of the Municipal Council who are appointed by this way shall be paid a monthly allowance by the Municipal Council, provided that the amount may not exceed two thirds of the monthly allowance assessed for the Mayor. Assignment in this manner shall not constitute a privileged right in view of the authorized bodies whether it is in the nature of admittance to government service, employment in the status of contracted personnel or worker. Besides, the assignment period shall not exceed the office period of the Municipal Council. The equivalents of social security premium and similar expenses shall be met from the municipal budget.

                       The overall annual expenditure of the municipality shall not exceed thirty percent of the amount to be found through multiplication of the budget income realized during the current year by the revaluation coefficient determined in the Tax Procedural Law Nr. 213. This rate shall be applied as forty percent in the municipalities with population less than 10.000.  In case of rise of personnel expenses above these limits as a result of unexpected increase in monthly pays and wages during the year, the employment of new personnel during the current and subsequent years shall be suspended until the personnel expenses are drawn under these rates. The public loss incurred due to exceeded rates, resulting for employment of new personnel, shall be collected from the Mayor, together with the legal interest to be calculated as of the accrual date of loss. All amounts due to personnel shall be paid in time and in priority.

                    Under the decision of the Municipal Committee, the employees of the municipality, excluding those employed by contract or in the status of worker, may be granted bonus at most two times in a year according to their performance and in proportion with the service period (including illness periods and annual leaves), provided that it may not exceed ten percent of the total number of employees and the amount to be calculated through multiplication of the monthly wage ceiling by indicator figure 20.000.


Transfer of personnel
ARTICLE 50-The positions and personnel of the municipalities excluded from status of legal entity pursuant to Articles 8 and 11 of this Law; shall be transferred to the incorporated municipality, or provincial administration in case of transformation to village. Of the personnel subject to transfer, the ones who hold current positions and titles shall be assumed to have been appointed to the position with the same title. If there is no vacancy or appropriate position, the title of the personnel not included in the transfer, shall be changed by the concerned Municipal Council or City Council within three months, provided that they are retained within the same class.
                  At most within one month as of this change, these personnel shall be appointed to the appropriate positions and until then, they shall be employed in the works designated by the municipality or provincial administration to which they are transferred. The monthly pays, fees, wage increases, compensations and other financial benefits received in the former position shall be paid by the concerned municipality and province private administration until they are appointed to the new positions. As for those in the status of civil servant and transferred to new position; if the total net amount received in the new position (including wage, wage increases, compensations, amounts fixed in the supplementary indicator and other financial benefits) happens to be less than the total net amount of pay (including wage, wage increases, compensations, amounts fixed in the supplementary indicator and other financial benefits) received at the end of the last month in the former position, then this difference shall be paid as compensation until it is eliminated without being subject to reduction.

           In the municipalities excluded from the status of legal entity, the positions of the contracted personnel employed according to subsection (B), article 4 of the Civil Servant Law Nr. 657, excluding those carrying the title of lawyer, shall be considered to be examined and approved by the municipality and special provincial administration (territorial governor) without need to execute further transaction.

                                                                  SECOND CHAPTER
Municipal Police, Fire Brigade and Planning of State of Emergency

Duties and powers of Municipal Police
ARTICLE 51-Municipal Police is in charge of establishment of laws and regulations for purpose of preservation of public order, promotion of public health, safety and morals and enforcement of the punishments and other sanctions for those who do not comply with the orders and restrictions brought by the Municipal Council and to be carried out by the municipal police administration.       

Any opposition to the municipal police while on duty shall be considered as resistance against the State security forces.

The working principles and procedures of the municipal police, powers and responsibilities of the personnel, qualifications required for admittance in the service, professional trainings, promotions, discharge from service, the uniforms and defensive measures and the units to be formed according to service types of the police organization, shall be determined in a regulation to be published by the Ministry of Interior. The Municipality may adopt further rules within the frame of this regulation.

Municipal police shall carry out the services without any interruptions.Working period and hours of municipal police personnel shall be regulated in a way not to impede rendering of the services, without being subject to working period and hours specified in State Servant Law Nr.657.
An over time pay, at an amount not exceeding the maximum limit fixed in the annual budget, shall be paid in cash under the decision of the Municipal Council against the services physically performed by those employed in the municipal police and private security organization.


Fire Brigade
ARTICLE 52- The working principles and procedures of the municipal police, powers and responsibilities of the personnel, qualifications required for admittance in the service, professional trainings, promotions, discharge from service, the uniforms and defensive measures and the units to be formed according to service types of the fire brigade, shall be determined in a regulation to be published by the Ministry of Interior. The Municipality may adopt further rules within the frame of this regulation.



Municipal police shall carry out the services without any interruptions.Working period and hours of municipal police personnel shall be regulated in a way not to impede rendering of the services, without being subject to working period and hours specified in State Servant Law Nr.657.

An over time pay, at an amount not exceeding the maximum limit fixed in the annual budget, shall be paid in cash under the decision of the Municipal Council against the services physically performed by those employed in the fire brigade organization.


Planning of state of emergency
ARTICLE 53-The Municipality shall make plans according to the characteristics of the territory in order to prevent fire, industrial accidents, earthquake and other natural disasters and to minimize the risks of such events and prepare the teams and equipment for action.


In preparation of prompt action plans, coordination shall be established with other action plans within the provincial scale and the opinion of the concerned ministry, public institutions, professional groups, universities and other local administrations shall be obtained in this respect.


Within the scope of these plans, joint programs can be made with the administrations, institutions and organizations mentioned in the second subsection for the training of the public. The Municipality may render necessary support and relief services to other regions in case of occurrence of fire and natural disasters outside the municipal boundaries.

                   






                                                             FOURTH SECTION
                                                         Inspection of Municipalities

Purpose of Inspection
ARTICLE 54-The purpose of inspection in the municipalities is to make impartial analysis and comparison of the services and consequences according to the previously specified object and targets, performance scales, quality standards and laws; to evaluate the results on the basis of documents and to prepare a report containing the findings to be submitted to the concerned authorities in order to avoid the failures in the activities and transactions of the municipality, to promote the municipal organization and skill of the personnel and to enable an effective, reliable and stable  management and control system.

Scope and  types of inspection
ARTICLE 55-Municipalites generally undergo external and internal inspection. The inspection covers financial auditing, performance evaluation, and examination of compliance of activities and transactions with the laws.

The external and internal inspection shall be made according to the provisions of the Law Nr. 5018 related to Public Finance Management and Control.
Furthermore, in addition to the financial transactions, the administrative transactions of the municipality may also be inspected by the Ministry of Interior to confirm compliance with the integrity, development plan and strategies of the administration.

The subsidiaries and associated corporations of the Municipality shall also be inspected according to the same procedure.

The inspection results shall be disclosed to the public and submitted to the Municipal Council.


Activity Report
ARTICLE 56-The Mayor shall prepare an activity report in the manner described in article 41 of the Public Finance Management and Control Law, indicating the activities carried out according to the strategic plan and performance targets; reasons of deviations vis a vis performance scales and targets; and the current state of debts of  the municipality. This report shall also contain information and assessments related to subsidiaries and associated corporations, partnerships of the municipality.

The activity report shall be submitted to the Council by the Mayor during the meeting to be held in april. One copy of the report shall be sent to the Ministry of Interior and disclosed to the public opinion.






Negligence in services
ARTICLE 57-Where it is determined by the justice of the peace upon request of the Ministry of Interior that there is gross negligence in services of the municipality constituting a risk for public health, peace and safety, the Minister of Interior shall warn the Mayor  by granting reasonable period for recovery of this negligence.

If it is failed to recover the negligence within the specified period, then the governor of the province shall be asked to perform this service. In such case, the Governor shall first try to eliminate the negative conditions by use of equipment, vehicles, personnel and other sources of the municipality. If not possible, he may ask for the assistance of the other public institutions and corporations. The cost of these services shall be notified to İller Bank by the Mayor and the amount shall be transferred to the disposal of the Governor's Office by making an allocation from the share of the municipality over the total amount of tax income in the general budget of the subsequent month.

The Municipality may file an objection to the civil court of first instance against the decision of the justice of the peace given upon request of the Ministry of Interior.

Other provisions related to inspections
ARTICLE 58- The relevant provisions of the Public Finance Management and Control Law Nr. 5018 shall be applied in the matters related to inspection and preparation of the activity report, which are not covered in this Law.


                                                               FIFTH SECTION
                                                              Financial Provisions
                                                               FIRST CHAPTER
                                                  Income and Expenditure of Municipality

Income of the Municipality
ARTICLE 59-Following are the income of the Municipality;
a)   Taxes, levies, charges and participation shares specified in the laws,
b)   Share allocated from the tax income of the general budget
c)   Payments to be made by the administrations with general and special budget
d)   Income obtained from lease, sale and augmentation of movable and immovable properties
e)   Fees to be collected against the services of the Municipality on the basis of the tariffs issued by the Municipal Council
f)   Incomes from interest and penalties
g)   Donations
h)   Income gained from all kinds of ventures, participations and operations
i)   Other income.

The total amount of real-estate tax collected within the great city municipal boundaries and municipalities in the contiguous areas shall be received by the provincial and first level municipalities. No deduction shall be made from these amounts as the share of the Great City Municipality or special provincial administration (local government).


Expenditure of Municipality
ARTICLE 60-Following is the expenditure of the Municipality;
a)   Expenses made for construction, repair and maintenance of the municipal buildings, premises and equipment.
b)   Fees, wages, appropriations, attendance fee, allowances paid to the personnel and designated organs of the municipality; training and other expenses.
c)   All kinds of infrastructure, construction, repair and maintenance expenses.
d)   Expenses related to follow-up and collection of taxes, levies, charges, participation shares and other amounts to be received against the services rendered by the municipality.
e)   Expenses related to services performed by the municipal police, fire brigade etc.
f)   Partnership shares and subscription fees payable by the Municipality during participation in companies, corporations and unions.
g)   Expenses related to construction, protection and maintenance of public cemeteries.
h)   Interest, loan re-payments and insurance expenses.
i)   Social services and aids to be rendered to the poor people and those who are in destitute and with narrow income.
j)   Court and execution expenses.
k)   Representation, ceremony, accommodation and promotion expenses.
l)   Payments such as attorney's fee, consultancy and auditing fees.
m)   Expenses of the services and project carried out jointly with the public and private sector and organized civil groups, both in and outside the country.
n)   Expenses related to socio-cultural, scientific and artistic activities.
o)   Expenses related to researches and public opinion survey concerning municipal services.
p)   Other expenses made for performance of other duties and services conferred upon by the laws.
      r)  Expenses related to conditional donations.
      s)  Expenses related to development plans.
      t) All kinds of expenses related to projects.


                     




                   
                                                                      SECOND CHAPTER
                                                                         Municipal Budget

Municipal Budget
ARTICLE 61- The budget, which is prepared according to the strategic plan of the Municipality,shall indicate the estimations of income and expenditure of the municipality within the fiscal year and projection for the next two years; the budget shall also allow collection and distribution of income.
Detailed expenditure programs and financial programs shall be attached to the budget.
Budget year is the same with the State fiscal year.
No expenditure shall be made beyond the budget.
The Mayor and other authorities having the power to make expenditure shall be liable to ensure spending of money in the most profitable, reasonable and economic manner.

Preparation and approval of Budget
ARTICLE 62-A budget draft shall be prepared by the Mayor to be submitted to the Municipal Board before the first day of September. This draft shall also be sent to the Ministry of Interior and  after consolidation , it shall be announced to the Ministry of Finance until the end of September to be added to the estimated budget of the central administration pursuant to Public Finance Management and Control Law. Following the review of the budget, the Municipal Board shall submit the same to the Municipal Council before the first day of November together with its remarks.

The Council shall approve the budget draft before the new year as it is or in the revised form. However, the Council shall not be entitled to alter the budget in such a way to cause imbalance in the budget by increase or decrease of income. The approved budget shall be put into force as of the beginning of fiscal year.

Person in charge of expenditure
ARTICLE 63- The chief of the unit to which allowance with municipal budget is allocated  shall be regarded as the person in charge of expenditure.

Final Accounts
ARTICLE 64- The final accounts of the annual budget shall be submitted by the Mayor to the Municipal Board during the month of april, following the expiry of accounts period. The final accounts shall be discussed and approved in the meeting of the Municipal Council to be realized in May.
The provisions of the law related to budget shall be applied for discussion and approval of the final accounts.

Budget System
ARTICLE 65-The principles and procedures related to Municipal budget and accounting transactions shall be set out in a regulation to be published by the Ministry of Interior, subject to the appropriate opinion of the Ministry of Finance.


Continuation of the Previous Year Budget
ARTICLE 66-Where the budget of the new-year is not finalized bound to any reason whatsoever, the budget of the previous year shall  continue to be applied until the finalization of the new budget.

The transactions executed until the finalization of the new budget shall be considered to have been realized according to the new-year's budget.

Undertaking of services for the subsequent years
ARTICLE 67-Pursuant to the decision of the Municipal Council (in municipalities) and authorized organs (in the subsidiaries of the municipality), works related to maintenance and repair of parks, gardens, hot-houses, car rental, controllership, cleaning, security and catering services; machinery-equipment maintenance and repair works; process data systems and stations, electronic data access services; health relief services; organization of fairs, exhibitions etc.; maintenance and cleaning of drains, infrastructure and asphalt construction and repair, traffic signalization and lightening maintenance, reading of counters and dismantling and re-setting of counters; mass transportation services; activities related to operation of social facilities may be sub-contracted to third parties by way of public bidding until the end of sixth month following the local general elections.



                                                                      THIRD CHAPTER
                                                         Indebtedness and Economical Investments

Indebtedness
ARTICLE 68-The Municipality may undertake obligations and issue debentures according to the following principles and procedures in order meet the expenses required to be made for performance of duties and services;

a)   Within the frame of the provisions of the Law Nr. 4749 Related To Public Finance and Management of Debts, foreign borrowings may be provided only for financing of the projects defined in the investment program of the Municipality.
b)   The Municipality using investment credit and cash credit from İller Bank shall be obliged to present the payment plan to this bank. Iller bank shall be entitled to reject the loan request of the municipality where the re-payment plan is found insufficient

c)   Issuance of debentures may be considered only for the financing of the projects defined in the investment program and shall be realized according to the provisions of the relevant law.

d)   The interest of total local and foreign borrowings of the Municipality, subsidiaries and the companies more than fifty percent of the capital of which is owned by the municipality, may not exceed the total amount of final budget income subject to increase at the rate of revaluation specified in the Tax Procedural Law Nr. 213. This amount shall be applied as one and a half fold for great city municipalities.

e)   The Municipalities, subsidiaries and companies more than fifty percent of the capital of which is owned by the municipality may provide local borrowings pursuant to the decision of the Municipal Council, provided that this amount may not exceed ten percent of the total  final budget income subject to increase at the rate of revaluation  specified in the Tax Procedural Law Nr. 213; the decision of the absolute majority of the entire members of the Council and approval of the Ministry of Interior shall be required for local borrowings above ten percent.

f)   In the infrastructure investments of the municipalities which require advanced technology and considerable amount of financial resource, the borrowings for the projects approved by the Council of Ministers upon request of the Undersecreteriat of State Planning Organization (SPO) may not be considered in calculation of the amount mentioned in paragraph(d).


Unless the offense committed requires a heavier punishment, the provisions of the Turkish Criminal Code Nr. 5237 shall be related to malfeasance in office , applied for the municipalities who are indebted against above-mentioned principles and procedures.

The Municipalities shall be liable to send their quarterly financial tables detailing the assets and liabilities to the Ministry of Interior, Ministry of Finance, State Planning Organization and Undersecreteriat of Treasury.


Provision of Plots and Housings
ARTICLE 69- The Municipality shall be entitled to provide plots with complete infrastructure within the municipal boundaries and contiguous areas to enable performance of urban development activities in the most orderly manner and to meet the housing, industrial and commercial requirements of the county; to engage in purchase, expropriation, exchange of plots for construction, lease of mass housings and to establish cooperation with the banks and other public institutions and corporations, and to realize joint projects on this subject.


For this purpose, the Municipality may establish enterprises by allocation of necessary fund from the budget. 

Excluding the plots, the sale of housings and workplaces shall not be subject to Public Procurement Law Nr. 2886. Plots can be granted within the municipal boundaries and contiguous areas to the people suffering from disasters and those with limited income, and to be transported to the industrial zones, as well as to the cooperatives the members of which are in the same situation, provided that neither the person in question nor his /her spouse or children owns a house. The sales price shall not be less than the price determined by the appraisal committee according to the provisions of the Expropriation Law Nr. 2942. According to this article, plot or housing may be granted to the individuals within the scope of article 25 of the Law Nr. 775 for Slum Houses. The application principles of this subsection shall  be regulated in a regulation to be published by the Municipal Council on the basis of frame regulation to be prepared jointly by the Ministry of Interior, Ministry of Public Works and Settlement.

Incorporation of a company
ARTICLE 70-The Municipality may incorporate companies according to the procedures stipulated in the relevant legislation for performance of the duties and services conferred upon.

Establishment of enterprise
ARTICLE 71- The municipality may render services having special income and expenditure,  by establishing an enterprise upon consent of the Ministry of Interior .

Exchange and deduction of debts and receivables
ARTICLE 72-Excluding the receivables of the Treasury within the scope of the Law Nr. 4749 related to Arrangement of Public Finance and Management of Debts, the debts and receivable of the municipality in respect of institutions with general budget, social security institutions, local administrations and other public institutions and corporations operating under private and public law may be subject to exchange and deduction (set-off) transaction. Necessary and sufficient fund shall be reserved in the budget of these institutions and corporations for this purpose.

The principles and procedures related to exchange and deduction transactions to be realized within the frame of this article shall  be regulated in a regulation to be published by the Ministry of Finance upon receipt of appropriate opinion of the Ministry of Interior.


                                                                    SIXTH SECTION
                                                         Miscellaneous and Final Provisions
                                                                     FIRST  CHAPTER
                                                               Miscellaneous Provisions


Urbanization and development areas
ARTICLE 73- The municipality, may adopt urbanization and development projects in order to re-construct and restore the ruined parts of the city; to create housing areas, industrial and commercial zones, technology parks and social facilities ; to take measures against the earthquake risk or to protect the historical and cultural structure of the city.                           

The areas to be subject to urbanization and development projects shall be announced under the decision of the absolute majority of the entire members of the Municipal Council.

One forth (1/4) of the relevant levies and charges shall be collected for the buildings which are to be demolished and re-constructed within the frame of urbanization and development project.

For announcement of a place within the scope of urbanization and development project; this place should be located within the boundaries of that municipality and contiguous area, and the area of the land should be at least fifty-thousand square meters.

In evacuation, demolishment and expropriation of the buildings subject to urbanization and development project, it is recommended to reach to an agreement with the owners. The actions to be filed by the owners of the property within the scope of urbanization and development project shall be dealt in priority by the courts and decision shall be given without delay.

Foreign Relations
ARTICLE 74- The Municipality may participate in the international institutions and organizations related to its field of operation as a founding member or member, upon decision of municipal council.

The Municipality may realize joint activities and service projects, or establish urban fellowship relations with these institutions, organizations and foreign local administrations.

It is a basic principle to carry out these activities mentioned in first and second subsections in compliance with the foreign policies and international agreements, and to obtain the permission of the Ministry of Interior beforehand.


Relations with other institutions
ARTICLE 75-On the basis of the contracts to be concluded pursuant to the decision of the Municipal Council, the Municipality;

a)   May undertake construction, maintenance, repair and transportation works of the local administrations and other public institutions and corporations in return for cost or without charging cost; may realize service projects with these institutions and may transfer funds for this purpose. In such a case, the work shall be completed according to provisions of legislation which the institution undertaking the work is subject to.

b)   May determine and meet the requirements in order to enable performance of basic services by the local administrations and central administration; may supply vehicles and personnel for this purpose,

c)   May realize joint service projects with the professional groups in the status of public institution, associations operating for public interest,associations and foundations for the disabled, foundations exempted from the tax by the Council of Ministers and other professional organizations registered in the chambers of industry and commerce within the scope of the Law Nr. 507 related to Craftsman and Small Scale Artisans.

d)   May transfer the immovable property used in the municipal services to the local administrations, public institutions and corporations in return for cost or without charging cost, or may allocate the same for a period not exceeding twenty-five years. It is also possible to lease this immovable to the same institutions. The transfer or allocation transaction shall be cancelled in case of utilization of the immovable property beyond its scope. Upon expiry of the allocation period, the transactions can be renewed upon request according to the same principles.

Immovable property, upon being transferred or allocated to the public institutions and corporations by the municipalities, subsidiaries and companies controlled by the municipality, may no longer be used as public place building or social premises.


City Council
ARTICLE 76-City Council shall be responsible from promotion of urbanization and fellow-citizenship vision, preservation of the rights of the inhabitants and materializing the rules stipulating developmental consistency, environmental care, social solidarity, transparency, participation in management and stable operation of control mechanism.

The Municipalities shall provide the necessary assistance and support to the City Council to enable performance of above listed activities effectively in cooperation with professional groups in the status of public institution, trade unions, notaries,  universities (if any), concerned non-governmental organizations, political parties, public institutions and corporations, representatives of executive officers of parish and other authorized bodies taking part in the city council.

The opinions declared by the City Council shall be put on the agenda and assessed during the first meeting of the Municipal Council. Working principles and procedures of the city council shall be determined with a regulation to be prepared by the Ministry of Interior.




Voluntary participation in municipal service
ARTICLE 77-In order to enable public participation in the services and to increase the efficiency and to carry out the activities in the most economic manner, the Municipality shall prepare programs for the volunteers who are willing to contribute health, training, sports, environmental, cultural and social services, formation of libraries, parks etc. and other services rendered to the old people, women and children, disabled, poor people and to those in destitute.

The qualifications and working principles and procedures of the volunteers shall be set out in a regulation to be published by the Ministry of Interior.


Correspondence/Communication
ARTICLE 78-The Municipality may directly communicate with the public institutions and corporations.


Places under the administration of Municipality
ARTICLE 79-Without the prejudice of the provisions adapted in the other laws, the cemeteries, amusement places, harvest places, woody land, recreation areas, marshy land, refuse disposal areas, the plots carrying ruins (towers, castles etc.) and similar other places within the municipal boundaries and without owner shall be under the administration of the municipality.


The administration of the land acquired by the municipality through filling up sea, rivers and lakes shall also be given to  the municipality ( to great city municipality in great cities) by the Ministry of Finance, provided that this land is used according to the Coast Law and relevant regulations.



Operation of inter-city bus terminals and fuel oil stations
ARTICLE 80-The Municipality may give permission to the real persons and legal entities possessing the right to transport passengers on highway, for construction and operation of inter-city terminals, all kinds of fuel oil and liquefied petroleum gas (LPG) and liquefied natural gas (NPG) stations within the municipal boundaries and contiguous areas provided that these works are executed in compliance with the regional and development plan. In order to grant permission, the location of the said stations should be indicated in the regional-construction plan. In the great cities, the license for operation of these stations shall be issued by the great city municipality.


Designation of name, logos and pennons
ARTICLE 81- Designation of name for the streets, roads, squares, parks, premises and other places and determination of the logos and pennons to be used during presentation activities shall be subject to the decision of the absolute majority of the entire members of the Municipal Council; in alteration of names, logos and pennons, the decision of two thirds (2/3) of the members shall be required. These decisions shall be put into force with the approval of highest administrative authority.


Distribution of Attorney's Fee
ARTICLE 82 The provisions of the Law Nr.1389 related to The Fees Payable To The Attorneys and Other Court Expenses In State Prosecutions shall be applied by analogy in distribution of the attorney's fee to the lawyers( including those assigned according to article 49) and other staff employed in the legal department after being collected from the other party at the end of the proceedings finalized in favor of Municipality.


Rate of Revaluation
ARTICLE 83-The monetary amounts mentioned in articles 15, 18 and 34 of this Law shall be increased at the rate of revaluation announced each year according to the Tax Procedural Law Nr. 213.


Inapplicable provisions
ARTICLE 84-With the regard the duties and services conferred upon the Municipality by this Law; the provisions of this Law shall be applied in case of determination of contrariness to this Law in the Public Health Law Nr. 1593 dated 24.4.1930, Law Nr. 2559 dated 4.7.1934 related to Duties and Responsibilities of Police, Province Administration Law Nr. 5442 dated 10.6.1949, Law related to Wholesale Markets formed by the Municipalities according to Paragraph 58 of Article 15 of the Municipal Law Nr. 1580 dated 12.9.1960, Charges Law Nr. 492 dated 2.7.1964, Highway Traffic Law Nr. 2918 dated 13.10.1983, Construction Law. Nr. 3194 dated 3.5.1985, the Law related to Amendment and Acceptance of the Decree-law For Opening and Licensing of Business Places Nr. 3572 dated 14.6.1989, Law Nr. 5179 dated 27.5.2004 related to Amendment and Acceptance of Decree-law For Production, Consumption and Control of Foodstuff, Highway Transportation Law Nr. 4925 dated 10.7.2003 , Law Nr.4856 dated 1.5.2003 related to Organization and Duties of the Ministry of Forestry and  Environment and Civil Servant Law Nr.657 dated 14.7.1965.



                                                                  SECOND CHAPTER
                                          Amended , Added and Abrogated Provisions


ARTICLE 85- a) (Related to Turkish Republic Retirement Fund Law Nr. 5434 dated 8.6. 1949 and has been entered in place of this law.)
b) Related to Vehicle Law Nr. 237 dated 5.1.1961 and has been entered in place of this law.
c) Abrogated paragraph (d) of first subsection of article 29 of Law Nr. 2972 dated 18.1.1984 on Election of Local Administrations , Local Governments and Alderman Committee has been re-regulated as "d) Establishment of municipality".

d) The phrase " To assemble non-sanitory workplaces, entertainment facilities,other workplaces which have an effect on public health and environment, at a certain part of the city; construction materials,scrap storage areas and sales places" to come after the phrase "afforesting" in paragraph (i) of the first subsection of article 7 of Great City Municipal Law Nr. 5216 dated 10.7.2004 ; the phrase "to exercise the powers conferred upon the municipality in Slum Houses Law Nr.775" to come after the phrase "mentioned services" in paragraph (d) of third subsection of the same article have been added.The phrase " The first legal counsel and" to come after the term " Great city municipality" in third subsection of article 22 ; and  the sentence " The council shall be entitled to determine a month to make a holiday." at the end of the first subsection of article 13 have been added. The sentence " Meeting of November shall be the beginning of the period ."in the first subsection of article 13 ; the phrase " within ten days" in the third subsection of article 14 ;as well as " at each meeting of  beginning of the period" in first subsection of article 15 and "at first ordinary meeting of each year" in the first subsection of article 16 have been removed from article texts.
e) The phrase "  culture,art, tourism " in paragraph (b) to come after the phrase " prevention of erosion" has been added to paragraph (a) of first subsection of article 6 of Law Nr.5302 dated 22.2.2005 On Special Provincial Administration . The phrase " culture, tourism, youth and sports" in paragraph (b) has been removed from the text and the following subsection has been added to the same article to come after the first subsection.The sentence " Meeting of November shall be the opening  meeting of period."in first subsection of article 12 and the phrase " within ten days" in third subsection of article 15 have been removed from the text. First sentence of first subsection of article 16 has been amended as follows " General provincial council may constitute specialized committees among its members comprising of at least three, at most five members." The phrase "and the committee" has been added to first subsection of article 24 to come after the phrase " council" and "2600" in the same subsection has been amended as "6000". Third and fourth subsections of article 36 have been removed from the text. The sentence "Provisions of article 49 of Municipal Law shall be applied for employment of contracted personnel and short term contracted personnel in special provincial administrations" has been added to the same article as third subsection .
Of the investments related to duties and services executed by central administration, the ones deemed appropriate by the relevant ministry may be realized by special provincial adminitrstions. Allowances related to these investments shall be transferred to budget of that special provincial administration by relevant institution.Special provincial administration may spend from its budget for an amount of 25 % of these investments.Central administration may also cooperate with special provincial administrations for the services that it wishes to support and develop on the basis of project, on condition that it transfers its resources to special provincial administration .These resources and allowances shall not be related with special administration budget and shall not be used for another purpose.
f)  Municipal Law Nr.5272 dated 7.12.2004 has been abrogated.
g) Article 38 of Real-Estate Tax Law Nr.1319 dated 29.7.1970 has been abrogated.
h) Sixth subsection of article 4 of Organized Industrial Zones Law Nr. 4562 dated 12.4.2000 has been amended as follows.

Licenses and consents related to use of land, projection, construction and use of building and facilities according to development plan entered into force as well as license for opening workplaces and working shall be issued and inspected by organized industrial zones . Charges related to opening wokplaces and working at the time of issuing the license for opening workplaces and working shall be collected by organized industrial zones and deposited in the account of relevant municipality or special provincial administration. 


                                                                  THIRD CHAPTER
                                                        Transitory and Final Provisions


TRANSITORY  ARTICLE 1. – In the Municipality exceeding the rate specified in article 49 for the personnel expenses, it is not allowed to employ additional personnel until this date rate is drawn downward, besides the exclusive permission dated 1.1. 2005 of the Ministry of Interior under requirement, which seeks availability of vacant position and necessary fund in the budget for recruitment of personnel. Even in such case, the number of personnel to be employed may not exceed ten percent of the existing employees and contracted personnel. Temporary positions shall not be allowed to be more than the previous year.


TRANSITORY  ARTICLE 2. – Establishment or cancellation of positions, or alterations related to vacancies in the position of the staff employed by the municipality, subsidiaries and associated corporations and local administrative units shall be subject to the decision of the  Council of Ministers until the adoption of the norm positions. This decision shall be taken upon proposal of the Ministry  of Interior and receipt of appropriate opinion of the Ministry  of Finance and Directorate of Public Personnel.Until norm position application is started to be applied, current positions set up by the Council of Ministers shall be accepted as norm positions as per application of third subsection of article 49.

Employment of workers in permanent positions and creation of new positions shall be subject to the visa of the Ministry of Interior until the implementation of norm positions. The Ministry of Interior may delegate its powers on this subject to the governor.


TRANSITORY  ARTICLE 3. –  The transactions related to transformation of municipalities with population less than 2000 on the publication date of this Law according to the census in 2000, to village, through abolishment of legal entity status of the municipalities, shall not be applied until the date of 31.12.2006 for the municipalities willing to take advantage of the provisions of Article 8 of this Law. In abolishment of legal entity status, the overall population after incorporation or participation shall be considered according to the results of the census during the year of 2000.
Transactions realized according to transitory article 4 of Municipal Law Nr. 5272 shall be accepted as realized according to this article.


TRANSITORY  ARTICLE 4. –  Strategic plan foreseen in article 41 shall be prepared within one year as of enforcement of this Law.

TRANSITORY  ARTICLE 5. –  The receivable subject to public and special law and payable by the public institutions and corporations as of 31.12. 2004 to the municipalities, subsidiaries and the companies, more than fifty percent of the capital of which is owned by the municipalities, shall be subject to set-off transaction against the debts of these institutions to the other public institutions and corporations  until 31.12.2005. The Council of Ministers shall be entitled to extend this period to six months.  The term debts and receivable used in this article shall also cover the accessories and penalties related to these debts and receivable.

Whether to set-off transaction or not, the debts of the institutions within the scope of this article, shall be collected through deduction from the general budget tax income, provided that the deducted amount may not exceed forty percent of the share reserved each month.

The declarations and set-off transactions to be realized according to this article shall be determined by the concerned institution and reconciliation committee irrespective of annual budget laws, the final decision shall be given by the  Council of Ministers upon proposal  of the Minister with whom the Undersecretariat of Treasury is associated. The  Council of Ministers shall be authorized to fix the credit terms for the payments, to apply increase and interest to the credited amount as of the publication date of this Law, and to make discount at an amount not exceeding the accessories and penalties assessed for these debts.

Attachment established for debts before 31.12.2004 pursuant to approval by the reconciliation committee of application of relevant foundation related to reconciliation and lift of attachment, shall be lifted .

The reconciliation committee shall comprise of one chairman to be nominated by the Minister with whom the Undersecretariat of Treasury is associated, and representatives from each one of Ministry of Interior, Ministry of Finance, Undersecretariat of State Planning Organization, Undersecretariat of Treasury, Supreme Council of Public Accounts, Directorate of Social Security Institution and General Directorate of İller Bankası


Effectiveness
ARTICLE 86 -  This  Law shall enter into force on the date of publication.

Enforcement
ARTICLE 87  - The provisions of this Law shall be enforced by the Council
of Ministers.
#115
THE CONSTITUTION OF THE REPUBLIC OF TURKEY -1982

   


PREAMBLE (As amended on October 17, 2001) 



In line with the concept of nationalism and the reforms and principles introduced by the founder of the Republic of Turkey, Atatürk, the immortal leader and the unrivalled hero, this Constitution, which affirms the eternal existence of the Turkish nation and motherland and the indivisible unity of the Turkish state, embodies;



The determination to safeguard the everlasting existence, prosperity and material and spiritual well-being of the Republic of Turkey, and to attain the standards of contemporary civilization as an honourable member with equal rights of the family of world nations;



The understanding of the absolute supremacy of the will of the nation and of the fact that sovereignty is vested fully and unconditionally in the Turkish nation and that no individual or body empowered to exercise this sovereignty in the name of the nation shall deviate from liberal democracy and the legal system instituted according to its requirements;



The principle of the separation of powers, which does not imply an order of precedence among the organs of state, but refers solely to the exercising of certain state powers and discharging of duties which are limited to cooperation and division of functions, and which accepts the supremacy of the Constitution and the law;



The recognition that no protection shall be accorded to an activity contrary to Turkish national interests, the principle of the indivisibility of the existence of Turkey with its state and territory, Turkish historical and moral values or the nationalism, principles, reforms and modernism of Atatürk and that, as required by the principle of secularism, there shall be no interference whatsoever by sacred religious feelings in state affairs and politics; the acknowledgment that it is the birthright of every Turkish citizen to lead an honourable life and to develop his or her material and spiritual assets under the aegis of national culture, civilization and the rule of law, through the exercise of the fundamental rights and freedoms set forth in this Constitution in conformity with the requirements of equality and social justice;



The recognition that all Turkish citizens are united in national honour and pride, in national joy and grief, in their rights and duties regarding national existence, in blessings and in burdens, and in every manifestation of national life, and that they have the right to demand a peaceful life based on absolute respect for one another's rights and freedoms, mutual love and fellowship and the desire for and belief in "Peace at home, peace in the world".



This Constitution, which is to be embraced with the ideas, beliefs, and resolutions it embodies below should be interpreted and implemented accordingly, thus commanding respect for, and absolute loyalty to, its letter and spirit.



Is entrusted by the Turkish nation to the patriotism and nationalism of its democracy-loving sons and daughters.



PART ONE


GENERAL PRINCIPLES



I. Form of the State


ARTICLE 1. The Turkish state is a Republic.



II. Characteristics of the Republic


ARTICLE 2. The Republic of Turkey is a democratic, secular and social state governed by the rule of law; bearing in mind the concepts of public peace, national solidarity and justice; respecting human rights; loyal to the nationalism of Atatürk, and based on the fundamental tenets set forth in the Preamble.



III. Integrity of the State, Official Language, Flag, National Anthem, and Capital


ARTICLE 3. The Turkish state, with its territory and nation, is an indivisible entity. Its language is Turkish.



Its flag, the form of which is prescribed by the relevant law, is composed of a white crescent and star on a red background.



Its national anthem is the "Independence March".



Its capital is Ankara.



IV. Irrevocable Provisions


ARTICLE 4. The provision of Article 1 of the Constitution establishing the form of the state as a Republic, the provisions in Article 2 on the characteristics of the Republic, and the provision of Article 3 shall not be amended, nor shall their amendment be proposed.



V. Fundamental Aims and Duties of the State


ARTICLE 5. The fundamental aims and duties of the state are; to safeguard the independence and integrity of the Turkish Nation, the indivisibility of the country, the Republic and democracy; to ensure the welfare, peace, and happiness of the individual and society; to strive for the removal of political, social and economic obstacles which restrict the fundamental rights and freedoms of the individual in a manner incompatible with the principles of justice and of the social state governed by the rule of law; and to provide the conditions required for the development of the individual's material and spiritual existence.



VI. Sovereignty


ARTICLE 6. Sovereignty is vested fully and unconditionally in the nation.



The Turkish Nation shall exercise its sovereignty through the authorised organs as prescribed by the principles laid down in the Constitution.



The right to exercise sovereignty shall not be delegated to any individual, group or class. No person or agency shall exercise any state authority which does not emanate from the Constitution.



VII. Legislative Power



ARTICLE 7. Legislative power is vested in the Turkish Grand National Assembly on behalf of the Turkish Nation. This power cannot be delegated.



VIII. Executive Power and Function



ARTICLE 8. Executive power and function shall be exercised and carried out by the President of the Republic and the Council of Ministers in conformity with the Constitution and the law.



IX. Judicial Power



ARTICLE 9. Judicial power shall be exercised by independent courts on behalf of the Turkish Nation.



X. Equality before the Law (As amended on May 22, 2004)


ARTICLE 10. All individuals are equal without any discrimination before the law, irrespective of language, race, colour, sex, political opinion, philosophical belief, religion and sect, or any such considerations.



Men and women have equal rights. The State shall have the obligation to ensure that this equality exists in practice.



No privilege shall be granted to any individual, family, group or class.



State organs and administrative authorities shall act in compliance with the principle of equality before the law in all their proceedings.


XI. Supremacy and Binding Force of the Constitution


ARTICLE 11. The provisions of the Constitution are fundamental legal rules binding upon legislative, executive and judicial organs, and administrative authorities and other institutions and individuals.



Laws shall not be in conflict with the Constitution.



PART TWO


FUNDAMENTAL RIGHTS AND DUTIES



CHAPTER ONE


GENERAL PROVISIONS



I. Nature of Fundamental Rights and Freedoms


ARTICLE 12. Everyone possesses inherent fundamental rights and freedoms which are inviolable and inalienable.



The fundamental rights and freedoms also comprise the duties and responsibilities of the individual to the society, his or her family, and other individuals.



II. Restriction of Fundamental Rights and Freedoms


ARTICLE 13. (As amended on October 17, 2001)



Fundamental rights and freedoms may be restricted only by law and in conformity with the reasons mentioned in the relevant articles of the Constitution without infringing upon their essence. These restrictions shall not be in conflict with the letter and spirit of the Constitution and the requirements of the democratic order of the society  and the secular Republic and  the principle of proportionality.





III. Prohibition of Abuse of Fundamental Rights and Freedoms



ARTICLE 14. (As amended on October 17, 2001)





None of the rights and freedoms embodied in the Constitution shall be exercised with the aim of violating the indivisible integrity of the state with its territory and nation, and endangering the existence of the democratic and secular order of  the Turkish Republic based upon human rights.



No provision of this Constitution shall be interpreted in a manner that enables the State or individuals to destroy the fundamental rights and freedoms embodied in the Constitution  or to stage an activity with the aim of restricting them more extensively than stated in the Constitution.



The sanctions to be applied against those who perpetrate  these activities in conflict with these provisions shall be determined by law.



IV. Suspension of the Exercise of Fundamental Rights and Freedoms (As amended on May 22, 2004)


ARTICLE 15. In times of war, mobilization, martial law, or state of emergency, the exercise of fundamental rights and freedoms can be partially or entirely suspended, or measures may be taken, to the extent required by the exigencies of the situation, which derogate the guarantees embodied in the Constitution, provided that obligations under international law are not violated.



Even under the circumstances indicated in the first paragraph, the individual's right to life, and the integrity of his or her material and spiritual entity shall be inviolable except where death occurs through lawful act of warfare; no one may be compelled to reveal his or her religion, conscience, thought or opinion, nor be accused on account of them; offences and penalties may not be made retroactive, nor may anyone be held guilty until so proven by a court judgment.





V. Status of Aliens


ARTICLE 16. The fundamental rights and freedoms of aliens may be restricted by law in a manner consistent with international law.



CHAPTER TWO


RIGHTS AND DUTIES OF THE INDIVIDUAL



I. Personal Inviolability, Material and Spiritual Entity of the Individual (As amended on May 22, 2004)


ARTICLE 17. Everyone has the right to life and the right to protect and develop his material and spiritual entity.



The physical integrity of the individual shall not be violated except under medical necessity and in cases prescribed by law; and shall not be subjected to scientific or medical experiments without his or her consent.



No one shall be subjected to torture or ill-treatment; no one shall be subjected to penalties or treatment incompatible with human dignity.



Cases such as the act of killing in self-defence, occurrences of death as a result of the use of a weapon permitted by law as a necessary measure during apprehension, the execution of warrants of arrest, the prevention of the escape of lawfully arrested or convicted persons, the quelling of riot or insurrection, or carrying out the orders of authorized bodies during martial law or state of emergency, are outside of the scope of the provision of paragraph 1.





II. Prohibition of Forced Labour



ARTICLE 18. No one shall be forced to work. Forced labour is prohibited.



Work required of an individual while serving a prison sentence or under detention, services required from citizens during a state of emergency, and physical or intellectual work necessitated by the requirements of the country as a civic obligation do not come under the description of forced labour, provided that the form and conditions of such labour are prescribed by law.



III. Personal Liberty and Security


ARTICLE 19. (As amended on October 17, 2001)



Everyone has the right to liberty and security of person.



No one shall be deprived of his or her liberty except in the following cases where procedure and conditions are prescribed by law: Execution of sentences restricting liberty and the implementation of security measures decided by court order; apprehension or detention of an individual in line with a court ruling or an obligation upon him designated by law; execution of an order for the purpose of the educational supervision of a minor or for bringing him or her before the competent authority; execution of measures taken in conformity with the relevant legal provision for the treatment, education or correction in institutions of a person of unsound mind, an alcoholic or drug addict or vagrant or a person spreading contagious diseases, when such persons constitute a danger to the public, apprehension or detention of a person who enters or attempts to enter illegally into the country or for whom a deportation or extradition order has been issued.



Individuals against whom there is strong evidence of having committed an offence can be arrested by decision of a judge solely for the purposes of preventing escape, or preventing the destruction or alteration of evidence as well as in similar other circumstances which necessitate detention and are prescribed by law. Apprehension of a person without a decision by a judge shall be resorted to only in cases when a person is caught in the act of committing an offence or in cases where delay is likely to thwart the course of justice; the conditions for such acts shall be defined by law.



Individuals arrested or detained shall be promptly notified, and in all cases in writing, or orally, when the former is not possible, of the grounds for their arrest or detention and the charges against them; in cases of offences committed collectively this notification shall be made, at the latest, before the individual is brought before a judge.



The person arrested or detained shall be brought before a judge within at latest  forty-eight hours and in the case of offences committed collectively within at most four days, excluding the time taken to send the individual to the court nearest to the place of arrest. No one can be deprived of his or her liberty without the decision of a judge after the expiry of the above-specified periods. These periods may be extended during a state of emergency, under martial law or in time of war.



The arrest or detention of a person shall be notified to next of kin immediately.



Persons under detention shall have the right to request trial within a reasonable time or to be released during investigation or prosecution. Release may be made conditional to the presentation of an appropriate guarantee with a view to securing the presence of the person at the trial proceedings and the execution of the court sentence.



Persons deprived of their liberty under any circumstances are entitled to apply to the appropriate judicial authority for speedy conclusion of proceedings regarding their situation and for their release if the restriction placed upon them is not lawful.



Damage suffered by persons subjected to treatment contrary to the above provisions shall be compensated by the State with respect to the general principles of the law on compensation.





IV. Privacy and Protection of Private Life



A. Privacy of Individual Life



ARTICLE 20. (As amended on October 17, 2001)





Everyone has the right to demand respect for his or her private and family life. Privacy of an individual or family life cannot be violated.



Unless there exists a decision duly passed by a judge on one or several of the grounds of national security, public order, prevention of crime commitment, protection of  public health and public morals, or protection of the rights and freedoms of others, or unless there exists a written order of an agency authorised by law in cases where delay is prejudicial, again on the above-mentioned grounds, neither the person nor the private papers, nor belongings, of an individual shall be searched nor shall they be seized. The decision of the authorized agency shall be submitted for the approval of the judge having jurisdiction within 24 hours. The judge shall announce his decision within 48 hours from the time of seizure; otherwise, seizure shall automatically be lifted.





B. Inviolability of the Domicile


ARTICLE 21. (As amended on October 17, 2001)



The domicile of an individual shall not be violated.



Unless there exists a decision duly passed by a judge on one or several of the grounds of national security, public order, prevention of crime commitment, protection of  public health and public morals, or protection of the rights and freedoms of others, or unless there exists a written order of an agency authorised by law in cases where delay is prejudicial, again on the above-mentioned grounds, no domicile may be entered or searched or the property therein seized. The decision of the authorised agency shall be submitted for the approval of the judge  having jurisdiction within 24 hours. The judge shall announce his decision within 48 hours from the time of seizure; otherwise, seizure shall automatically be lifted.





C. Freedom of Communication


ARTICLE 22. (As amended on October 17, 2001)



Everyone has the right to freedom of communication.



Secrecy of communication is fundamental.



Unless there exists a decision duly passed by a judge on one or several of the grounds of national security, public order, prevention of crime commitment, protection of  public health and public morals, or protection of the rights and freedoms of others, or unless there exists a written order of an agency authorised by law in cases where delay is prejudicial, again on the above-mentioned grounds, communication shall not be impeded nor its secrecy be violated. The decision of the authorised agency shall be submitted for the approval of the judge  having jurisdiction within 24 hours. The judge shall announce his decision within 48 hours from the time of seizure; otherwise, seizure shall automatically be lifted.



Public establishments or institutions where exceptions to the above may be applied are defined by law.









V. Freedom of Residence and Movement


ARTICLE 23.  (As amended on October 17, 2001)



Everyone has the right to freedom of residence and movement.



Freedom of residence may be restricted by law for the purpose of preventing offences, promoting social and economic development, ensuring sound and  orderly urban growth, and protecting public property; freedom of movement may be restricted by law for the purpose of investigation and prosecution of an offence, and prevention of offences.  A citizen's freedom to leave the country may be restricted on account of civic obligations, or criminal investigation or prosecution. 



Citizens may not be deported, or deprived of their right of entry to their homeland.









VI. Freedom of Religion and Conscience


ARTICLE 24. Everyone has the right to freedom of conscience, religious belief and conviction.



Acts of worship, religious services, and ceremonies shall be conducted freely, provided that they do not violate the provisions of Article 14.



No one shall be compelled to worship, or to participate in religious ceremonies and rites, to reveal religious beliefs and convictions, or be blamed or accused because of his religious beliefs and convictions.



Education and instruction in religion and ethics shall be conducted under state supervision and control. Instruction in religious culture and moral education shall be compulsory in the curricula of primary and secondary schools. Other religious education and instruction shall be subject to the individual's own desire, and in the case of minors, to the request of their legal representatives.



No one shall be allowed to exploit or abuse religion or religious feelings, or things held sacred by religion, in any manner whatsoever, for the purpose of personal or political influence, or for even partially basing the fundamental, social, economic, political, and legal order of the state on religious tenets.



VII. Freedom of Thought and Opinion


ARTICLE 25. Everyone has the right to freedom of thought and opinion. No one shall be compelled to reveal his thoughts and opinions for any reason or purpose, nor shall anyone be blamed or accused on account of his thoughts and opinions.



VIII. Freedom of Expression and Dissemination of Thought


ARTICLE 26. (As amended on October 17, 2001)





Everyone has the right to express and disseminate his thoughts and opinion by speech, in writing or in pictures or through other media, individually or collectively. This right includes the freedom to receive and impart information and ideas without interference from official authorities. This provision shall not preclude subjecting transmission by radio, television, cinema, and similar means to a system of licensing.



The exercise of these freedoms may be restricted for the purposes of protecting national security, public order and public safety, the basic characteristics of the Republic and safeguarding the indivisible integrity of the State with its territory and nation, preventing crime, punishing offenders, withholding information duly classified as a state secret, protecting the reputation and rights and private and family life of others, or protecting professional secrets as prescribed by law, or ensuring the proper functioning of the judiciary.



The formalities, conditions and procedures to be applied in exercising the right to expression and dissemination of thought shall be prescribed by law.





IX. Freedom of Science and the Arts


ARTICLE 27. Everyone has the right to study and teach freely, explain, and disseminate science and arts and to carry out research in these fields.



The right to disseminate shall not be exercised for the purpose of changing the provisions of Articles 1, 2 and 3 of this Constitution.



The provisions of this article shall not preclude regulation by law of the entry and distribution of foreign publications in the country.



X. Provisions Relating to the Press and Publication


A. Freedom of the Press


ARTICLE 28. (As amended on October 17, 2001)





The press is free, and shall not be censored. The establishment of a printing house shall not be subject to prior permission or the deposit of a financial guarantee.



The state shall take the necessary measures to ensure freedom of the press and freedom of information.



In the limitation of freedom of the press, Articles 26 and 27 of the Constitution are applicable.



Anyone who writes or prints any news or articles which threaten the internal or external security of the state or the indivisible integrity of the state with its territory and nation, which tend to incite offence, riot or insurrection, or which refer to classified state secrets and anyone who prints or transmits such news or articles to others for the above purposes, shall be held responsible under the law relevant to these offences. Distribution may be suspended as a preventive measure by the decision of a judge, or in the event delay is deemed prejudicial, by the competent authority designated by law. The authority suspending distribution shall notify a competent judge of its decision within twenty-four hours at the latest. The order suspending distribution shall become null and void unless upheld by a competent judge within forty-eight hours at the latest.



No ban shall be placed on the reporting of events, except by the decision of judge issued to ensure proper functioning of the judiciary, within the limits specified by law.



Periodical and non-periodical publications may be seized by a decision of a judge in cases of ongoing investigation or prosecution of offences prescribed by law, and, in situations where delay could endanger the indivisible integrity of the state with its territory and nation, national security, public order or public morals and for the prevention of offence by order of the competent authority designated by law. The authority issuing the order to confiscate shall notify a competent judge of its decision within twenty-four hours at the latest. The order to confiscate shall become null and void unless upheld by the competent court within forty-eight hours at the latest.



The general common provisions shall apply when seizure and confiscation of periodicals and non-periodicals for reasons of criminal investigation and prosecution takes place.



Periodicals published in Turkey may be temporarily suspended by court sentence if found to contain material which contravenes the indivisible integrity of the state with its territory and nation, the fundamental principles of the Republic, national security and public morals. Any publication which clearly bears the characteristics of being a continuation of a suspended periodical is prohibited; and shall be seized following a decision by a competent judge.



B. Right to Publish Periodicals and Non-periodicals


ARTICLE 29. Publication of periodicals or non-periodicals shall not be subject to prior authorisation or the deposit of a financial guarantee.



To publish a periodical it shall suffice to submit the information and documents prescribed by law to the competent authority designated by law. If the information and documents submitted are found to be in contravention of law, the competent authority shall apply to the appropriate court for suspension of publication.



The publication of periodicals, the conditions of publication, the financial resources and the rules relevant to the profession of journalism shall be regulated by law. The law shall not impose any political, economic, financial, and technical conditions, thus obstructing or making difficult the free dissemination of news, thought, or beliefs.



Periodicals shall have equal access to the means and facilities of the state, other public corporate bodies, and their agencies.



C. Protection of Printing Facilities (As amended on May 22, 2004)



ARTICLE 30. Neither a printing house and its annexes duly established as a press enterprise under law nor press equipment shall be seized, confiscated, or barred from operation on the grounds of having been used in a crime.





D. Right to Use Media Other Than the Press Owned by Public Corporations


ARTICLE 31.  (As amended on October 17, 2001)





Individuals and political parties have the right to use mass media and means of communication other than the press owned by public corporations. The conditions and procedures for such use shall be regulated by law.



The law shall not impose restrictions  preventing the public from receiving information or forming ideas and opinions through these media, or preventing public opinion from being freely formed, on the grounds other than national security, public order, public morals, or the protection of public health.



E. Right of Rectification and Reply


ARTICLE 32. The right of rectification and reply shall be accorded only in cases where personal reputation and honour is attacked or in cases of unfounded allegation and shall be regulated by law.



If a rectification or reply is not published, the judge will decide, within seven days of appeal by the individual involved, whether or not this publication is required.



XI. Rights and Freedoms of Assembly


A. Freedom of Association


ARTICLE 33. (As amended on October 17, 2001)



Everyone has the right to form associations, or become a member of an association, or withdraw from membership without prior permission.



No one shall be compelled to become or remain a member of an association.



Freedom of association may only be restricted by law on the grounds of protecting national security and public order, or prevention of crime commitment, or protecting public morals, public health.



The formalities, conditions, and procedures governing the exercise of freedom of association shall be prescribed by law.



Associations may be dissolved or suspended from activity by the decision of a judge in cases prescribed by law. In cases where delay endangers national security or public order and in cases where it is necessary to prevent the perpetration or the continuation of a crime or to effect apprehension, an authority designated by law may be vested with power to suspend the association from activity. The decision of this authority shall be submitted for the approval of the judge in charge within twenty-four hours. The judge shall announce his decision within forty-eight hours, otherwise this administrative decision shall be annulled automatically.



Provisions of the first paragraph shall not prevent imposition of restrictions on the rights of armed forces and security  forces officials and civil servants to the extent that the duties of civil servants so require.



The provisions of this article are also applicable to foundations.







B. Right to Hold Meetings and Demonstration Marches


ARTICLE 34. (As amended on October 17, 2001)



Everyone has the right to hold unarmed and peaceful meetings and demonstration marches without prior permission.



The right to hold meetings and demonstration marches shall only be restricted by law on the grounds of national security, and public order, or prevention of crime commitment, public health and public morals or for the protection of the rights and freedoms of others.



The formalities, conditions, and procedures governing the exercise of the right to hold meetings and demonstration marches shall be prescribed by law.









XII. Property Rights


ARTICLE 35. Everyone has the right to own and inherit property.



These rights may be limited by law only in view of public interest.



The exercise of the right to own property shall not be in contravention of the public interest.



XIII. Provisions Relating to the Protection of Rights


A. Freedom to Claim Rights


ARTICLE 36.  (As amended on October 17, 2001)





Everyone has the right of litigation either as plaintiff or defendant and the right to a fair trial before the courts through lawful means and procedures.



No court shall refuse to hear a case within its jurisdiction.



B. Guarantee of Lawful Judgement


ARTICLE 37. No one may be tried by any judicial authority other than the legally designated court. Extraordinary tribunals with jurisdiction that would in effect remove a person from the jurisdiction of his legally designated court shall not be established.



C. Principles Relating to Offences and Penalties


ARTICLE 38. (As amended on May 22, 2004)



No one shall be punished for any act which does not constitute a criminal offence under the law in force at the time committed; no one shall be given a heavier penalty for an offence other than the penalty applicable at the time when the offence was committed.



The provisions of the above paragraph shall also apply to the statute of limitations on offences and penalties and on the results of conviction.



Penalties, and security measures in lieu of penalties, shall be prescribed only by law.



No one shall be considered guilty until proven guilty in a court of law.



No one shall be compelled to make a statement that would incriminate himself/herself or his/her legal next of kin, or to present such incriminating evidence.



Findings obtained through illegal methods shall not be considered evidence.



Criminal responsibility shall be personal.



No one shall be deprived of his liberty merely on the ground of inability to fulfil a contractual obligation.



Neither death penalty nor general confiscation shall be imposed as punishment.



The Administration shall not impose any sanction resulting in restriction of personal liberty. Exceptions to this provision may be introduced by law regarding the internal order of the Armed Forces.



No citizen shall be extradited to a foreign country on account of an offence except under obligations resulting from being a party to the International Criminal Court.





XIV. Right to Prove an Allegation


ARTICLE 39. In libel and defamation suits involving allegations against persons in the public service in connection with their functions or services, the defendant has the right to prove the allegations. A plea for presenting proof shall not be granted in any other case unless proof would serve the public interest or unless the plaintiff consents.



XV. Protection of Fundamental Rights and Freedoms


ARTICLE 40.  (As amended on October 17, 2001)





Everyone whose constitutional rights and freedoms have been violated has the right to request prompt access to the competent authorities.



The State, is obliged to indicate in its transactions, the legal remedies and authorities the persons concerned should apply and their time limits.



Damages incurred by any person through unlawful treatment by holders of public office shall be compensated for by the state. The state reserves the right of recourse to the official responsible.



CHAPTER THREE


SOCIAL AND ECONOMIC RIGHTS AND DUTIES



1. Protection of the Family



ARTICLE 41. (As amended on October 17, 2001)



The family is the foundation of the Turkish society and based on the equality between the spouses.



The state shall take the necessary measures and establish the necessary organisation to ensure the peace and welfare of the family, especially where the protection of the mother and children is involved, and recognizing the need for education in the practical application of family planning.



II. Right and Duty of Training and Education


ARTICLE 42. No one shall be deprived of the right of learning and education.



The scope of the right to education shall be defined and regulated by law.



Training and education shall be conducted along the lines of the principles and reforms of Atatürk, on the basis of contemporary science and educational methods, under the supervision and control of the state. Institutions of training and education contravening these provisions shall not be established.



The freedom of training and education does not relieve the individual from loyalty to the Constitution.



Primary education is compulsory for all citizens of both sexes and is free of charge in state schools.



The principles governing the functioning of private primary and secondary schools shall be regulated by law in keeping with the standards set for state schools.



The state shall provide scholarships and other means of assistance to enable students of merit lacking financial means to continue their education. The state shall take necessary measures to rehabilitate those in need of special training so as to render such people useful to society.



Training, education, research, and study are the only activities that shall be pursued at institutions of training and education. These activities shall not be obstructed in any way.



No language other than Turkish shall be taught as a mother tongue to Turkish citizens at any institutions of training or education. Foreign languages to be taught in institutions of training and education and the rules to be followed by schools conducting training and education in a foreign language shall be determined by law. The provisions of international treaties are reserved.



III. Public Interest


A. Utilisation of the Coasts


ARTICLE 43. The coasts are under the sovereignty and disposal of the state.



In the utilisation of sea coasts, lake shores or river banks, and of the coastal strip along the sea and lakes, public interest shall be taken into consideration with priority.



The width of coasts, and coastal strips according to the purpose of utilization and the conditions of utilization by individuals shall be determined by law.



B. Land Ownership


ARTICLE 44. The state shall take the necessary measures to maintain and develop efficient land cultivation, to prevent its loss through erosion, and to provide land to farmers with insufficient land of their own, or no land. For this purpose, the law may define the size of appropriate land units, according to different agricultural regions and types of farming. Providing of land to farmers with no or insufficient land shall not lead to a fall in production, or to the depletion of forests and other land and underground resources.



Lands distributed for this purpose shall neither be divided nor be transferred to others, except through inheritance, and shall be cultivated only by the farmers to whom the lands have been distributed, and their heirs. The principles relating to the recovery by the state of the land thus distributed in the event of loss of these conditions shall be prescribed by law.



C. Protection of Agriculture, Animal Husbandry, and of Persons Engaged in These Activities



ARTICLE 45. The state facilitates farmers and livestock breeders in acquiring machinery, equipment and other inputs in order to prevent improper use and destruction of agricultural land, meadows and pastures and to increase crop and livestock production in accordance with the principles of agricultural planning.



The state shall take necessary measures to promote the values of crop and livestock products, and to enable growers and producers to be paid the real value of their products.



D. Expropriation



ARTICLE 46. (As amended on October 17, 2001)





The State and public corporations shall be entitled, where the public interest requires it, to expropriate privately owned real estate wholly or in part and impose administrative servitude on it, in accordance with the principles and procedures prescribed by law, provided that the actual compensation is paid in advance.



The compensation for expropriation and the amount regarding its increase rendered by a final judgement shall be paid in cash and in advance. However, the procedure to be applied for compensation for expropriated land in order to carry out land reform, major energy and irrigation projects, and housing and resettlement schemes and afforestation, and to protect the coasts and to build tourist facilities shall be regulated by law. In the cases where the law may allow payment in instalments, the payment period shall not exceed five years, whence payments shall be made in equal instalments.



Compensation for the land expropriated from the small farmer who cultivates his own land shall in all cases be paid in advance.



An interest equivalent to the highest interest paid on public claims shall be implemented in the instalments envisaged in the second paragraph.







E. Nationalization and Privatisation


ARTICLE 47. (As amended on August 13, 1999)



Private enterprises performing public services may be nationalized when this is required by the exigencies of public interest.



Nationalization shall be carried out on the basis of real value. The methods and procedures for calculating real value shall be prescribed by law.



Principles and rules concerning the privatisation of enterprises and assets owned by the State, State Economic Enterprises and other public corporate bodies shall be prescribed by law.



Those investments and services carried out by the State, State Economic Enterprises and other public corporate bodies which could be performed by or delegated to real or corporate bodies through private law contracts shall be determined by law.



IV. Freedom to Work and Conclude Contracts


ARTICLE 48. Everyone has the freedom to work and conclude contracts in the field of his/her choice. Establishment of private enterprises is free.



The state shall take measures to ensure that private enterprises operate in accordance with national economic requirements and social objectives and in conditions of security and stability.



V. Provisions Relating to Labour


A. Right and Duty to Work


ARTICLE 49. (As amended on October 17, 2001)



Everyone has the right and duty to work.



The State shall take the necessary measures to raise the standard of living of workers, and to protect workers and the unemployed in order to improve the general conditions of labour, to promote labour, to create suitable economic conditions for prevention of unemployment and to secure labour peace.



B. Working Conditions and Right to Rest and Leisure


ARTICLE 50. No one shall be required to perform work unsuited to his age, sex, and capacity.



Minors, women and persons with physical or mental disabilities, shall enjoy special protection with regard to working conditions.



All workers have the right to rest and leisure.



Rights and conditions relating to paid weekends and holidays, together with paid annual leave, shall be regulated by law.



C. Right to Organize Labour Unions



ARTICLE 51. (As amended on October 17, 2001)



Employees and employers have the right to form labour unions, employers' associations and higher organizations, without obtaining permission, and they also possess the right to become a member of a union and to freely withdraw from membership, in order to safeguard and develop their economic and social rights and the interests of their members in their labour relations. No one shall be forced to become a member of a union or to withdraw from membership.



The right to form a union shall be solely restricted by law for purposes of safeguarding national security and public order and to prevent crime and protect public health and public morals and the rights and freedoms of others.



The formalities, conditions and procedures to be applied in exercising the right to form union shall be prescribed by law.



Membership in more than one labour union cannot be obtained at the same time and in the same work branch.



The scope, exceptions and limits of the rights of civil servants who do not have a worker status are prescribed by law in line with the characteristics of their job.



The regulations, administration and functioning of labour unions and their higher bodies should not be inconsistent with the fundamental characteristics of the Republic and principles of democracy.



D. Activities of Labour Unions


ARTICLE 52. (Repealed on July 2,1995)



VI. Collective Bargaining, Right to Strike and Lockout


A. Right of Collective Bargaining


ARTICLE 53. (As amended on July 23, 1995)



Workers and employers have the right to conclude collective bargaining agreements in order to regulate reciprocally their economic and social position and conditions of work.



The procedure to be followed in concluding collective bargaining agreements shall be regulated by law.



The unions and their higher organizations, which are to be established by the public employees mentioned in the first paragraph of Article 128 and which do not fall under the scope of the first and second paragraphs of the same article and also Article 54, may appeal to judicial authorities on behalf of their members and may hold collective bargaining meetings with the administration in accordance with their aims. If an agreement is reached as a result of collective bargaining, a text of the agreement will be signed by the parties. Such text shall be presented to the Council of Ministers so that administrative or judicial arrangements can be made. If such a text cannot be concluded by collective bargaining, the agreed and disagreed points will also be submitted for the consideration of the Council of Ministers by the relevant parties. The regulations for the execution of this article are stipulated by law.



More than one collective bargaining agreement at the same place of work for the same period shall not be concluded or put into effect.



B. Right to Strike and Lockout


ARTICLE 54. Workers have the right to strike if a dispute arises during the collective bargaining process. The procedures and conditions governing the exercise of this right and the employer's recourse to a lockout, the scope of both actions, and the exceptions to which they are subject shall be regulated by law.



The right to strike, and lockout shall not be exercised in a manner contrary to the principle of goodwill to the detriment of society, and in a manner damaging national wealth.



During a strike, the labour union is liable for any material damage caused in a work-place where the strike is being held, as a result of deliberately negligent behaviour by the workers and the labour union.



The circumstances and places in which strikes and lockouts may be prohibited or postponed shall be regulated by law.



In cases where a strike or a lockout is prohibited or postponed, the dispute shall be settled by the Supreme Arbitration Board at the end of the period of postponement. The disputing parties may apply to the Supreme Arbitration Board by mutual agreement at any stage of the dispute.



The decisions of the Supreme Arbitration Board shall be final and have the force of a collective bargaining agreement.



The organisation and functions of the Supreme Arbitration Board shall be regulated by law.



Politically motivated strikes and lockouts, solidarity strikes and lockouts, occupation of work premises, labour go- slows, and other forms of obstruction are prohibited.



Those who refuse to go on strike, shall in no way be barred from working at their work-place by strikers.



VII. Guarantee of Fair Wage


ARTICLE 55. (As amended on October 17, 2001)



Wages shall be paid in return for work.



The state shall take the necessary measures to ensure that workers earn a fair wage commensurate with the work they perform and that they enjoy other social benefits.



In determining the minimum wage, the living conditions of the workers and the economic situation of the country shall be taken into account.



VIII. Health, the Environment and Housing


A. Health Services and Conservation of the Environment


ARTICLE 56. Everyone has the right to live in a healthy, balanced environment.



It is the duty of the state and citizens to improve the natural environment, and to prevent environmental pollution.



To ensure that everyone leads their lives in conditions of physical and mental health and to secure cooperation in terms of human and material resources through economy and increased productivity, the state shall regulate central planning and functioning of the health services.



The state shall fulfil this task by utilizing and supervising the health and social assistance institutions, in both the public and private sectors.



In order to establish widespread health services general health insurance may be introduced by law.



B. Right to Housing


ARTICLE 57. The state shall take measures to meet the need for housing within the framework of a plan which takes into account the characteristics of cities and environmental conditions and supports community housing projects.



IX. Youth and Sports


A. Protection of the Youth


ARTICLE 58. The state shall take measures to ensure the training and development of the youth into whose keeping our state, independence, and our Republic are entrusted, in the light of contemporary science, in line with the principles and reforms of Atatürk, and in opposition to ideas aiming at the destruction of the indivisible integrity of the state with its territory and nation.



The state shall take necessary measures to protect youth from addiction to alcohol and drugs, crime, as well as gambling, and similar vices, and ignorance.



B. Development of Sports


ARTICLE 59. The state shall take measures to develop the physical and mental health of Turkish citizens of all ages, and encourage the spread of sports among the masses.



The state shall protect successful athletes.



X. Social Security Rights


A. Right to Social Security



ARTICLE 60. Everyone has the right to social security.



The state shall take the necessary measures and establish the organisation for the provision of social security.



B. Persons Requiring Special Protection in the Field of Social Security


ARTICLE 61. The state shall protect the widows and orphans of those killed in war and in the line of duty, together with the disabled and war veterans, and ensure that they enjoy a decent standard of living.



The state shall take measures to protect the disabled and secure their integration into community life.



The aged shall be protected by the state. State assistance to the aged, and other rights and benefits shall be regulated by law.



The state shall take all kinds of measures for social resettlement of children in need of protection.



To achieve these aims the state shall establish the necessary organisations or facilities, or arrange for their establishment by other bodies.



C. Turkish Nationals Working Abroad


ARTICLE 62. The state shall take the necessary measures to ensure family unity, the education of the children, the cultural needs, and the social security of Turkish nationals working abroad, and shall take the necessary measures to safeguard their ties with the home country and to help them on their return home.



XI. Conservation of Historical, Cultural and Natural Wealth



ARTICLE 63. The state shall ensure the conservation of the historical, cultural and natural assets and wealth, and shall take supportive and promotive measures towards that end.



Any limitations to be imposed on such privately owned assets and wealth and the compensation and exemptions to be accorded to the owners of such, as a result of these limitations, shall be regulated by law.



XII. Protection of Arts and Artists



ARTICLE 64. The state shall protect artistic activities and artists. The state shall take the necessary measures to protect, promote and support works of art and artists, and encourage the growth of appreciation for the arts.



XIII. The Extent of Social and Economic Duties of the State



ARTICLE 65. (As amended on October 17, 2001)



The State shall fulfil its duties as laid down in the Constitution in the social and economic fields within the capacity of its financial resources, taking into consideration the priorities appropriate with the aims of these duties.



CHAPTER FOUR


POLITICAL RIGHTS AND DUTIES



I. Turkish Citizenship


ARTICLE 66. (As amended on October 17, 2001)



Everyone bound to the Turkish state through the bond of citizenship is a Turk.



The child of a Turkish father or a Turkish mother is a Turk.



Citizenship can be acquired under the conditions stipulated by law, and shall be forfeited only in cases determined by law.



No Turk shall be deprived of citizenship, unless he commits an act incompatible with loyalty to the motherland.



Recourse to the courts in appeal against the decisions and proceedings related to the deprivation of citizenship, shall not be denied.



II. Right to Vote, to be Elected and to Engage in Political Activity



ARTICLE 67. (As amended on October 17, 2001)





In conformity with the conditions set forth in the law, citizens have the right to vote, to be elected, and to engage in political activities independently or in a political party, and to take part in a referendum.



Elections and referenda shall be held under the direction and supervision of the judiciary, in accordance with the principles of free, equal, secret, and direct, universal suffrage, and public counting of the votes. However, the conditions under which the Turkish citizens who are abroad shall be able to exercise their right to vote, are regulated by law.



All Turkish citizens over 18 years of age shall have the right to vote in elections and to take part in referenda.



The exercise of these rights shall be regulated by law.



Privates and corporals serving in the armed services, students in military schools, and convicts in penal execution excluding those convicted of negligent offences cannot vote. The Supreme Election Council shall determine the measures to be taken to ensure the safety of the counting of votes when detainees in penal institutions or prisons vote; such voting is done under the on-site direction and supervision of authorized judge. The electoral laws shall be drawn up in such a way as to reconcile the principles of fair representation and consistency in administration. 



Amendments made to the electoral laws shall not be applied to the elections to be held within one year from when the amendments go into force.



III. Provisions Relating to Political Parties


A. Forming Parties, Membership and Withdrawal From Membership in a Party


ARTICLE 68. (As amended on July 23, 1995: 4121/6 Article)



Citizens have the right to form political parties and in accordance with the established procedure to join and withdraw from them. One must be over 18 years of age to become a member of a party.



Political parties are indispensable elements of democratic political life.



Political parties can be formed without prior permission and shall pursue their activities in accordance with the provisions set forth in the Constitution and law.



The statutes and programmes, as well as the activities of political parties shall not be in conflict with the independence of the state, its indivisible integrity with its territory and nation, human rights, the principles of equality and rule of law, sovereignty of the nation, the principles of the democratic and secular republic; they shall not aim to protect or establish class or group dictatorship or dictatorship of any kind, nor shall they incite citizens to crime.



Judges and prosecutors, members of higher judicial organs including those of the Court of Accounts, civil servants in public institutions and organizations, other public servants who are not considered to be labourers by virtue of the services they perform, members of the armed forces and students who are not yet in higher education institutions, shall not become members of political parties.



The membership of the teaching staff at higher education institutions in political parties is regulated by law. This law cannot allow those members to assume responsibilities outside the central organs of the political parties. It also sets forth the regulations which the teaching staff at higher education institutions shall observe as members of political parties.



The principles concerning the membership of students at higher education institutions to political parties are regulated by law.



The state shall provide the political parties with adequate financial means in an equitable manner. The financial assistance to be extended to political parties, as well as procedures related to collection of membership dues and donations are regulated by law.



B. Principles to be Observed by Political Parties



ARTICLE 69. (As amended on July 23, 1995 and October 17, 2001)



The activities, internal regulations and operation of political parties shall be in line with democratic principles. The application of these principles is regulated by law.



Political parties shall not engage in commercial activities.



The income and expenditure of political parties shall be consistent with their objectives. The application of this rule is regulated by law. The auditing of the income, expenditure and acquisitions of political parties by the Constitutional Court as well as the establishment of the conformity to law of their revenue and expenses, methods of auditing and sanctions to be applied in the event of unconformity shall also be regulated by law. The Constitutional Court shall be assisted in performing its task of auditing by the Court of Accounts. The judgments rendered by the Constitutional Court as a result of the auditing shall be final.



The dissolution of political parties shall be decided finally by the Constitutional Court after the filing of a suit by the office of the Chief Public Prosecutor of the Republic.



The permanent dissolution of a political party shall be decided when it is established that the statute and programme of the political party violate the provisions of the fourth paragraph of Article 68.



The decision to dissolve a political party permanently owing to activities violating the provisions of the fourth paragraph of Article 68 may be rendered only when the Constitutional Court determines that the party in question has become a centre for the execution of such activities. A political party shall be deemed to become the centre of such actions only when such actions are carried out intensively by the members of that party or the situation is shared implicitly or explicitly by the grand congress, general chairmanship or the central decision-making or administrative organs of that party or by the group's general meeting or group executive board at the Turkish Grand National Assembly or when these activities are carried out in determination by the above-mentioned party organs directly.



Instead of dissolving them permanently in accordance with the above-mentioned paragraphs, the Constitutional Court may rule the concerned party to be deprived of State aid wholly or in part with respect to intensity of the actions brought before the court.



A party which has been dissolved permanently cannot be founded under another name.



The members, including the founders of a political party whose acts or statements have caused the party to be dissolved permanently cannot be founders, members, directors or supervisors in any other party for a period of five years from the date of publication in the official gazette of the Constitutional Court's final decision and its justification for permanently dissolving the party.



Political parties which accept financial assistance from foreign states, international institutions and persons and corporate bodies shall be dissolved permanently.

The foundation and activities of political parties, their supervision and dissolution, or their deprival of State aid wholly or in part as well as the election expenditures and procedures of the political parties and candidates, are regulated by law in accordance with the above-mentioned principles.



IV. Right to Enter Public Service


A. Entry into Public Service



ARTICLE 70. Every Turk has the right to enter public service.



No criteria other than the qualifications for the office concerned shall be taken into consideration for recruitment into public service.



B. Declaration of Assets



ARTICLE 71. Declaration of assets by persons entering public service and the frequency of such declaration, shall be determined by law. Those serving in the legislative and executive organs shall not be exempted from this requirement.



V. National Service


ARTICLE 72. National service is the right and duty of every Turk. The manner in which this service shall be performed, or considered as performed, either in the Armed Forces or in public service shall be regulated by law.



VI. Obligation to Pay Taxes



ARTICLE 73. Everyone is under obligation to pay taxes according to his financial resources, in order to meet public expenditure.



An equitable and balanced distribution of the tax burden is the social objective of fiscal policy.



Taxes, fees, duties, and other such financial impositions shall be imposed, amended, or revoked by law.



The Council of Ministers may be empowered to amend the percentages of exemption, exceptions and reductions in taxes, fees, duties and other such financial impositions, within the minimum and maximum limits prescribed by law.



VII. Right of Petition


ARTICLE 74. (As amended on October 17, 2001)



Citizens and foreigners resident considering the principle of reciprocity have the right to apply in writing to the competent authorities and to the Turkish Grand National Assembly with regard to the requests and complaints concerning themselves or the public.



The result of the application concerning himself shall be made known to the petitioner in writing without delay.



The way of exercising this right shall be determined by law.



PART THREE


FUNDAMENTAL ORGANS OF THE REPUBLIC



CHAPTER ONE


LEGISLATIVE POWER



I. The Turkish Grand National Assembly



A. Composition



ARTICLE 75. (As amended on July 23, 1995)



The Turkish Grand National Assembly shall be composed of five hundred and fifty deputies elected by universal suffrage.



B. Eligibility to be a Deputy



ARTICLE 76. Every Turk over the age of 25 is eligible to be a deputy.



Persons who have not completed their primary education, who have been deprived of legal capacity, who have failed to perform compulsory military service, who are banned from public service, who have been sentenced to a prison term totalling one year or more excluding involuntary offences, or to a heavy imprisonment; those who have been convicted for dishonourable offences such as embezzlement, corruption, bribery, theft, fraud, forgery, breach of trust, fraudulent bankruptcy; and persons convicted of smuggling, conspiracy in official bidding or purchasing, of offences related to the disclosure of state secrets, of involvement in acts of terrorism, or incitement and encouragement of such activities, shall not be elected deputies, even if they have been pardoned.



Judges and prosecutors, members of the higher judicial organs, members of the teaching staff at institutions of higher education, members of the Higher Education Council, employees of public institutions and agencies who have the status of civil servants, other public employees not regarded as labourers on account of the duties they perform, and members of the Armed Forces shall not stand for election or be eligible to be a deputy unless they resign from office.



C. Election Term of the Turkish Grand National Assembly



ARTICLE 77. Elections for the Turkish Grand National Assembly shall be held every five years.



The Assembly may decide to hold a new election before the termination of this period, and new elections may also be decided upon according to a decision, taken in accordance with the conditions set forth in the Constitution, by the President of the Republic. A deputy whose term of office expires may be eligible for re-election.



In the event of a decision to hold new elections, the powers of the Assembly shall continue until the election of a new Assembly.



D. Deferment of Elections to the Turkish Grand National Assembly, and By-elections



ARTICLE 78. (As amended on December 12, 2002 – Article 4777/2)



If the holding of new elections is found impossible because of war, the Turkish Grand National Assembly may decide to defer elections for a year.



If the grounds for deferment do not disappear this measure may be repeated under the procedure for deferment.



By-elections shall be held when vacancies arise in the membership of the Turkish Grand National Assembly. By-elections shall be held once in every election term and cannot be held until 30 months have elapsed from the date of the previous general elections. However, in cases where the number of vacant seats reaches five percent of the total number of seats, by- elections shall be held within three months.



By-elections shall not be held within one year before general elections.



Apart from the above-specified situations, if a city or district lacks representation in Parliament, a by-election shall be held on the first Sunday, 90 days following creation of the vacancy. In elections held per this paragraph, paragraph 3 of Article 127 of the Constitution shall not apply.





E. General Administration and Supervision of Elections



ARTICLE 79. Elections shall be held under the general administration and supervision of the judicial organs.



The Supreme Election Council shall execute all the functions to ensure the fair and orderly conduct of the elections from the beginning to the end of polling, carry out investigations and take final decisions on all irregularities, complaints and objections concerning the elections during and after the polling, and verify the election returns of the members of the Turkish Grand National Assembly. No appeal shall be made to any authority against the decisions of the Supreme Election Council.



The functions and powers of the Supreme Election Council and other election councils shall be determined by law.



The Supreme Election Council shall be composed of seven regular members and four substitutes. Six of the members shall be elected by the Plenary Assembly of the High Court of Appeals, and five members shall be elected by the Plenary Assembly of the Council of State from amongst its own members, by secret ballot and by an absolute majority of the total number of members. These members shall elect a Chairman and a Vice-Chairman from amongst themselves, by absolute majority and secret ballot.



Amongst the members elected to the Supreme Election Council by the High Court of Appeals and by the Council of State, two members from each group shall be designated, by lot, as substitute members. The Chairman and Vice-Chairman of the Supreme Election Council shall not take part in this procedure.



The general conduct and supervision of a referendum on legislation amending the Constitution shall be subject to the same provisions as those relating to the election of deputies.



F. Provisions Relating to Membership



1. Representing the Nation



ARTICLE 80. Members of the Turkish Grand National Assembly represent, not merely their own constituencies or constituents, but the Nation as a whole.



2. Oath-Taking



ARTICLE 81. Members of the Turkish Grand National Assembly, on assuming office, shall take the following oath:



"I swear upon my honour and integrity, before the great Turkish Nation, to safeguard the existence and independence of the state, the indivisible integrity of the Country and the Nation, and the absolute sovereignty of the Nation; to remain loyal to the supremacy of law, to the democratic and secular Republic, and to Atatürk's principles and reforms; not to deviate from the ideal according to which everyone is entitled to enjoy human rights and fundamental freedoms under peace and prosperity in society, national solidarity and justice, and loyalty to the Constitution."



3. Activities Incompatible with Membership



ARTICLE 82. Members of the Turkish Grand National Assembly shall not hold office in state departments and other public corporate bodies and their subsidiaries; in corporations and enterprises affiliated with the state and other public corporate bodies; in the executive or supervisory organs of enterprises and corporations where there is direct or indirect participation of the state and public corporate bodies, in the executive and supervisory organs of public benefit associations, whose special resources of revenue and privileges are provided by law; in the executive and supervisory organs of foundations which enjoy tax exemption and receive financial subsidies from the state; and in the executive and supervisory organs of labour unions and public professional organisations, and in the enterprises and corporations in which the above-mentioned unions and associations or their higher bodies have a share; nor can they be appointed as representatives of the above-mentioned bodies or be party to a business contract, directly or indirectly, and be arbitrators of representatives in their business transactions.



Members of the Turkish Grand National Assembly shall not be entrusted with any official or private duties involving recommendation, appointment, or approval by the executive organ. Acceptance by a deputy of a temporary assignment given by the Council of Ministers on a specific matter, and not exceeding a period of six months, is subject to the approval of the Assembly.



Other functions and activities incompatible with membership in the Turkish Grand National Assembly shall be regulated by law.



4. Parliamentary Immunity



ARTICLE 83. Members of the Turkish Grand National Assembly shall not be liable for their votes and statements concerning parliamentary functions, for the views they express before the Assembly, or unless the Assembly decides otherwise on the proposal of the Bureau for that sitting, for repeating or revealing these outside the Assembly.



A deputy who is alleged to have committed an offence before or after election, shall not be arrested, interrogated, detained or tried unless the Assembly decides otherwise. This provision shall not apply in cases where a member is caught in the act of committing a crime punishable by a heavy penalty and in cases subject to Article 14 of the Constitution if an investigation has been initiated before the election. However, in such situations the competent authority shall notify the Turkish Grand National Assembly immediately and directly.



The execution of a criminal sentence imposed on a member of the Turkish Grand National Assembly either before or after his election shall be suspended until he ceases to be a member; the statute of limitations does not apply during the term of membership.

Investigation and prosecution of a re-elected deputy shall be subject to whether or not the Assembly lifts immunity in the case of the individual involved.



Political party groups in the Turkish Grand National Assembly shall not hold discussions or take decisions regarding parliamentary immunity.



5. Loss of Membership



ARTICLE 84. (As amended on July 23, 1995)



The loss of membership of a deputy who has resigned shall be decided upon by the plenary of the Turkish Grand National Assembly after the Bureau of the Turkish Grand National Assembly attests to the validity of the resignation.



The loss of membership, through a final judicial sentence or deprivation of legal capacity, shall take effect after the final court decision in the matter has been communicated to the plenary of the Turkish Grand National Assembly.



The loss of membership of a deputy who insists on holding a position or continues an activity incompatible with membership according to Article 82, shall be decided by a secret plenary vote, upon the submission of a report drawn up by the authorized commission setting out the factual situation.



Loss of membership by a deputy who fails to attend without excuse or permission, five meetings in a period of one month shall be decided by an absolute majority of the total number of members after the Bureau of the Turkish Grand National Assembly determines the situation.



The membership of a deputy whose statements and acts are cited in a final judgment by the Constitutional Court as having caused the permanent dissolution of his party shall terminate on the date when the decision in question and its justifications are published in the Official Gazette. The speaker of the Turkish Grand National Assembly shall immediately take the necessary action concerning such decision and shall inform the plenary of the Turkish Grand National Assembly accordingly.



6. Application for Annulment



ARTICLE 85. (As amended on July 23, 1995)



If the parliamentary immunity of a deputy has been waived or if the loss of membership has been decided according to the first, third or fourth paragraphs of Article 84, the deputy in question or another deputy may, within seven days from the day of the decision of the Grand National Assembly of Turkey, appeal to the Constitutional Court, for the decision to be annulled on the grounds that it is contrary to the Constitution, law or the rules or procedure of the Turkish Grand National Assembly. The Constitutional Court shall decide on the appeal within fifteen days.



7. Salaries and Allowances



Article 86. (As amended on November 30, 2001)



The salaries, allowances and retirement arrangements of the members of the Turkish Grand National Assembly shall be regulated by law. The monthly amount of the salary shall not exceed the salary of the most senior civil servant; the travel allowance shall not exceed half of that salary. The members of the Turkish Grand National Assembly and its retirees are affiliated with the Pension Fund of the Turkish Republic, and the affiliation of those  continue upon their will in case of their membership expires.



The salaries and allowances paid to the members of the Turkish Grand National Assembly shall not necessitate the suspension of payments of pensions and similar benefits by the Pension Fund of the Turkish Republic.



A maximum of three months' salaries and allowances may be paid in advance.





II. Functions and Powers of the Turkish Grand National Assembly


A. General Provisions



ARTICLE 87. (As amended on May 22, 2004)



The functions and powers of the Turkish Grand National Assembly comprise the enactment, amendment, and repeal of laws; the supervision of the Council of Ministers and the Ministers; authorisation of the Council of Ministers to issue governmental decrees having the force of law on certain matters; debating and approval of the budget draft and the draft law of final accounts, making decisions on the printing of currency and the declaration of war; ratifying international agreements, making decisions with 3/5 of the Turkish Grand National Assembly on the proclamation of amnesties and pardons according to the Constitution; and exercising the powers and executing the functions envisaged in the other articles of the Constitution.





B. Proposal and Debate of Laws



ARTICLE 88. The Council of Ministers and deputies are empowered to introduce laws.



The procedure and principles relating to the debating of draft bills and proposals of law in the Turkish Grand National Assembly shall be regulated by the Rules of Procedure.



C. Promulgation of Laws by the President of the Republic



ARTICLE 89. (As amended on October 17, 2001)



The President of the Republic shall promulgate the laws adopted by the Turkish Grand National Assembly within fifteen days.



He shall, within the same period, refer to the Turkish Grand National Assembly for further consideration, laws which he deems wholly or in part or unsuitable for promulgation, together with a statement of his reasons. In the event of being deemed unsuitable by the President, the Turkish Grand National Assembly may only discuss those articles deemed to be unsuitable. Budget laws shall not be subjected to this provision.



Provisions relating to Constitutional amendments are reserved.



D. Ratification of International Treaties (As amended on May 22, 2004)



ARTICLE 90. The ratification of treaties concluded with foreign states and international organisations on behalf of the Republic of Turkey, shall be subject to adoption by the Turkish Grand National Assembly by a law approving the ratification.



Agreements regulating economic, commercial and technical relations, and covering a period of no more than one year, may be put into effect through promulgation, provided they do not entail any financial commitment by the state, and provided they do not infringe upon the status of individuals or upon the property rights of Turkish citizens abroad. In such cases, these agreements must be brought to the knowledge of the Turkish Grand National Assembly within two months of their promulgation.



Agreements in connection with the implementation of an international treaty, and economic, commercial, technical, or administrative agreements which are concluded depending on the authorisation as stated in the law shall not require approval of the Turkish Grand National Assembly. However, agreements concluded under the provision of this paragraph and affecting economic, or commercial relations and the private rights of individuals shall not be put into effect unless promulgated.



Agreements resulting in amendments to Turkish laws shall be subject to the provisions of the first paragraph.



International agreements duly put into effect bear the force of law. No appeal to the Constitutional Court shall be made with regard to these agreements, on the grounds that they are unconstitutional. In the case of a conflict between international agreements in the area of fundamental rights and freedoms duly put into effect and the domestic laws due to differences in provisions on the same matter,  the provisions of international agreements shall prevail.



E. Authorisation to Enact Decrees Having the Force of Law



ARTICLE 91. The Turkish Grand National Assembly may empower the Council of Ministers to issue decrees having the force of law. However, the fundamental rights, individual rights and duties included in the First and Second Chapter of the Second Part of the Constitution and the political rights and duties listed in the Fourth Chapter, cannot be regulated by decrees having the force of law except during periods of martial law and states of emergency.



The empowering law shall define the purpose, scope, principles, and operative period of the decree having the force of law, and whether more than one decree will be issued within the same period.



Resignation or fall of the Council of Ministers, or expiration of the legislative term shall not cause the termination of the power conferred for the given period.



When approving a decree having the force of law before the end of the prescribed period, the Turkish Grand National Assembly shall also state whether the power has terminated or will continue until the expiry of the said period.



Provisions relating to the decrees having the force of law issued by the Council of Ministers meeting under the chairmanship of the President of the Republic in time of martial law or states of emergency, are reserved.



Decrees having the force of law shall come into force on the day of their publication in the Official Gazette. However, a later date may be indicated in the decree as the date of entry into force.



Decrees are submitted to the Turkish Grand National Assembly on the day of their publication in the Official Gazette.



Laws of empowering and decrees having the force of law which are based on these, shall be discussed in the committees and in the plenary sessions of the Turkish Grand National Assembly with priority and urgency.



Decrees not submitted to the Turkish Grand National Assembly on the day of their publication shall cease to have effect on that day and decrees rejected by the Turkish Grand National Assembly shall cease to have effect on the day of publication of the decision in the Official Gazette. The amended provisions of the decrees which are approved as amended shall go into force on the day of their publication in the Official Gazette.



F. Declaration of State of War and Authorisation to Deploy the Armed Forces



ARTICLE 92. The Power to authorise the declaration of a state of war in cases deemed legitimate by international law and except where required by international treaties to which Turkey is a party or by the rules of international courtesy to send Turkish Armed Forces to foreign countries and to allow foreign armed forces to be stationed in Turkey, is vested in the Turkish Grand National Assembly.



If the country is subjected, while the Turkish Grand National Assembly is adjourned or in recess, to sudden armed aggression and it thus becomes imperative to decide immediately on the deployment of the armed forces, the President of the Republic can decide on the mobilization of the Turkish Armed Forces.



III. Provisions Relating to the Activities of the Turkish Grand National Assembly



A. Convening and Adjournment


ARTICLE 93. (As amended on July 23, 1995)



The Turkish Grand National Assembly shall convene of its own accord on the first day of October each year.



The Assembly may be in recess for a maximum of three months in the course of a legislative year. During adjournment or recess it may be summoned by the President of the Republic either on his own initiative or at the request of the Council of Ministers.



The Speaker of the Assembly may also summon the Assembly either on his own initiative or at the written request of one fifth of the members.



If the Turkish Grand National Assembly is convened during an adjournment or recess, it shall not adjourn or go into recess again before having given priority consideration to the matter requiring the summons.



B. Bureau of the Assembly



ARTICLE 94. (As amended on October 17, 2001)



The Bureau of the Assembly of the Turkish Grand National Assembly shall be composed of the Speaker, the Deputy Speaker, Secretary Members, and Administrative Members elected from among the Assembly members.



The Bureau of the Assembly shall be so composed as to ensure proportionate representation to the number of members of each political party group in the Assembly. Political party groups shall not nominate candidates for the Office of the Speaker.



Two elections to the Bureau of the Turkish Grand National Assembly shall be held in the course of one legislative term. The term of office of those elected in the first round is two years and the term of office of those elected in the second round is three years.



The candidates from among the members of the Assembly for the Office of the Speaker of the Turkish Grand National Assembly shall be announced, within five days of the convening of the Assembly, to the Bureau of the Assembly. Election of the Speaker shall be held by secret ballot. In the first two ballots, a two-thirds majority of the total number of members, and in the third ballot an absolute majority of the total number of members is required. If an absolute majority cannot be obtained in the third ballot a fourth ballot shall be held between the two candidates who have received the highest number of votes in the third ballot; the member who receives the greatest number of votes in the fourth ballot shall be elected Speaker. The election of the Speaker shall be completed within five days of the expiry of the period for the nomination of candidates.



The quorum required for election, the number of ballots and its procedure, the number of Deputy Speakers, Secretary Members and Administrative Members, shall be stipulated by the Assembly Rules of Procedure.



The Speaker and Deputy Speaker of the Turkish Grand National Assembly cannot participate in the activities of the political party or party group in which they are a member, nor in debates, within or outside the Assembly, except in cases required by their functions; the Speaker and the Deputy Speaker who is presiding over the session shall not vote.



C. Rules of Procedure, Political Party Groups and Security Affairs



ARTICLE 95. The Grand National Assembly of Turkey shall carry out its activities in accordance with the provisions of the Rules of Procedure drawn up by itself.



The provisions of the Rules of Procedure shall be drawn up in such a way as to ensure the participation of each political party group in all the activities of the Assembly in proportion to its number of members, political party groups shall be constituted only if they have at least twenty members.



All security and administrative services of the Turkish Grand National Assembly regarding all buildings, installations, annexes and grounds shall be organised and directed by the Office of the Speaker of the Assembly.



Sufficient forces to ensure security and other such services shall be allocated to the Office of the Speaker of the Assembly by the relevant authorities.



D. Quorums Required for Sessions and Decisions



ARTICLE 96. Unless otherwise stipulated in the Constitution, the Turkish Grand National Assembly shall convene with at least, one-third of the total number of members and shall take decisions by an absolute majority of those present; however, the quorum for decisions can, under no circumstances, be less than a quarter plus one of the total number of members.



Members of the Council of Ministers may delegate a minister to vote on their behalf in sessions of the Turkish Grand National Assembly which they are unable to attend. However, a minister shall not cast more than two votes including his or her own.



E. Publicity and Publication of Debates



ARTICLE 97. Debates held in the plenary session of the Turkish Grand National Assembly shall be public and shall be published verbatim in the Journal of Records.



The Turkish Grand National Assembly may hold closed sessions in accordance with the provisions of its Rules of Procedure; the publication of debates of such sessions shall be subject to the decision of the Turkish Grand National Assembly.



Public proceedings of the Assembly may be freely published through all means, unless a decision to the contrary is adopted by the Assembly upon a proposal of the Bureau of the Assembly.



IV. Ways of Collecting Information and Supervision by the Turkish Grand National Assembly



A. General Provisions



ARTICLE 98. The Turkish Grand National Assembly shall exercise its supervisory power by means of questions, parliamentary inquiries, general debates, motions of censure and parliamentary investigations. A question is a request for information addressed to the Prime Minister or ministers to be answered orally or in writing on behalf of the Council of Ministers.



A parliamentary inquiry is an examination conducted to obtain information on a specific subject.



A general debate is the consideration of a specific subject relating to the community and the activities of the state at the plenary sessions of the Turkish Grand National Assembly.



The form of presentation, content, and scope of the motions concerning questions, parliamentary inquiries and general debates, and the procedures for answering, debating and investigating them, shall be regulated by the Rules of Procedure.



B. Motions of Censure


ARTICLE 99. A motion of censure may be tabled either on behalf of a political party group, or by the signature of at least twenty deputies.



A motion of censure shall be circulated in printed form to members within three days of its being tabled; inclusion of a motion of censure on the agenda shall be debated within ten days of its circulation. In this debate, only one of the signatories to the motion, one deputy from each political party group, and the Prime Minister or one minister on behalf of the Council of Ministers, may take the floor.



Together with the decision to include the motion of censure on the agenda, the date for debating it will also be decided; however, the debate shall not take place less than two days after the decision to place it on the agenda and shall not be deferred more than seven days.



In the course of the debate on the motion of censure, a motion of no-confidence with a statement of reasons tabled by deputies or party groups, or the request for a vote of confidence by the Council of Ministers, shall be put to the vote only after a full day has elapsed.



In order to unseat the Council of Ministers or a minister, an absolute majority of the total number of members shall be required in the voting, in which only the votes of no-confidence shall be counted.



Other provisions concerning motions of censure, provided that they are consistent with the smooth functioning of the Assembly, and do not conflict with the above-mentioned principles are detailed in the Rules of Procedure.



C. Parliamentary Investigation



ARTICLE 100. (As amended on October 17, 2001)



Parliamentary investigation concerning the Prime Minister or other ministers may be requested through a motion tabled by at least one-tenth of the total number of members of the Turkish Grand National Assembly. The Assembly shall consider and decide on this request with a secret ballot within one month at the latest.



In the event of a decision to initiate an investigation, this investigation shall be conducted by a commission of fifteen members chosen by lot on behalf of each party from among three times the number of members the party is entitled to have on the commission, representation being proportional to the parliamentary membership of the party. The commission shall submit its report on the result of the investigation to the Assembly within two months. If the investigation is not completed within the time allotted, the commission shall be granted a further and final period of two months. At the end of this period, the report shall be submitted to the Office of the Speaker of the Turkish Grand National Assembly.



Following its submission to the Office of the Speaker of the Turkish Grand National Assembly, the report shall be distributed to the members within ten days and debated within ten days after its distribution and if necessary, a decision may be taken to bring the person involved before the Supreme Court. The decision to bring a person before the Supreme Court shall be taken by a secret ballot only by an absolute majority of the total number of members.



Political party groups in the Assembly shall not hold discussions or take decisions regarding parliamentary investigations.



CHAPTER TWO


THE EXECUTIVE



I. President of the Republic


A. Qualifications and Impartiality



ARTICLE 101. The President of the Republic shall be elected for a term of office of seven years by the Turkish Grand National Assembly from among its own members who are over 40 years of age and who have completed their higher education or from among Turkish citizens who fulfil these requirements and are eligible to be deputies.



The nomination of a candidate for the Presidency of the Republic from outside the Turkish Grand National Assembly shall require a written proposal by at least one-fifth of the total number of members of the Assembly.



The President of the Republic cannot be elected for a second time.



The President-elect, if a member of a party, shall sever his relations with his party and his status as a member of the Turkish Grand National Assembly shall cease.



B. Election



ARTICLE 102. The President of the Republic shall be elected by a two-thirds majority of the total number of members of the Turkish Grand National Assembly and by secret ballot. If the Turkish Grand National Assembly is not in session, it shall be summoned immediately to meet.



The election of the President of the Republic shall begin thirty days before the term of office of the incumbent President of the Republic expires or ten days after the Presidency falls vacant, and shall be completed within thirty days of the beginning of the election. Candidates shall be declared to the Bureau of the Assembly within the first ten days of this period and elections shall be completed within the remaining twenty days.



If a two-thirds majority of the total number of members cannot be obtained in the first two ballots, between which there shall be at least a three-day interval, a third ballot shall be held and the candidate who receives the absolute majority of votes of the total number of members shall be elected President of the Republic. If an absolute majority of votes of the total number of members is not obtained in the third ballot, a fourth ballot will be held between the two candidates who receive the greatest number of votes in the third ballot; if the President of the Republic cannot be elected by an absolute majority of the total number of members in this ballot, new general elections for the Turkish Grand National Assembly shall be held immediately.



The term of office of the incumbent President of the Republic shall continue until the President-elect takes office.



C. Taking the Oath



ARTICLE 103. On assuming office, the President of the Republic shall take the following oath before the Turkish Grand National Assembly:



"In my capacity as President of the Republic I swear upon my honour and integrity before the Turkish Grand National Assembly and before history to safeguard the existence and independence of the state, the indivisible integrity of the Country and the Nation and the absolute sovereignty of the Nation, to abide by the Constitution, the rule of law, democracy, the principles of the secular Republic, not to deviate from the ideal according to which everyone is entitled to enjoy human rights and fundamental freedoms under conditions of national peace and prosperity and in a spirit of national solidarity and justice, and do my utmost to preserve and exalt the glory and honour of the Republic of Turkey and perform without bias the functions that I have assumed."



D. Duties and Powers



ARTICLE 104. The President of the Republic is the Head of the state. In this capacity he or she shall represent the Republic of Turkey and the unity of the Turkish Nation; he or she shall ensure the implementation of the Constitution, and the regular and harmonious functioning of the organs of state.



To this end, the duties he or she shall perform, and the powers he or she shall exercise, in accordance with the conditions stipulated in the relevant articles of the Constitution are as follows:



a) Those relating to legislation:



to deliver, if he or she deems it necessary, the opening address of the Turkish Grand National Assembly on the first day of the legislative year,



to summon the Turkish Grand National Assembly to meet, when necessary,



to promulgate laws,



to return laws to the Turkish Grand National Assembly to be reconsidered,



to submit to referendum, if he or she deems it necessary, legislation regarding amendment of the Constitution.



to appeal to the Constitutional Court for the annulment in part or entirety of certain provisions of laws, decrees having the force of law, and the Rules of Procedure of the Turkish Grand National Assembly on the grounds that they are unconstitutional in form or in content,



to call new elections for the Turkish Grand National Assembly.



b) Those relating to executive functions:



to appoint the Prime Minister and to accept his or her resignation,



to appoint and dismiss Ministers on the proposal of the Prime Minister,



to preside over the Council of Ministers or to call the Council of Ministers to meet under his or her chairmanship whenever he or she deems it necessary,



to accredit representatives of the Turkish state to foreign states and to receive the representatives of foreign states appointed to the Republic of Turkey,



to ratify and promulgate international treaties,



to represent the Supreme Military Command of the Turkish Armed Forces on behalf of the Turkish Grand National Assembly,



to decide on the mobilization of the Turkish Armed Forces,



to appoint the Chief of the General Staff,



to call the National Security Council to meet,



to preside over the National Security Council,



to proclaim martial law or state of emergency, and to issue decrees having the force of law, in accordance with the decisions of the Council of Ministers under his or her chairmanship,



to sign decrees,



to remit, on grounds of chronic illness, disability, or old age, all or part of the sentences imposed on certain individuals,



to appoint the members and the chairman of the state Supervisory Council,



to instruct the State Supervisory Council to carry out inquiries, investigations and inspections,



to appoint the members of the Higher Education Council,



to appoint rectors of universities.



c) Those relating to the judiciary:



to appoint the members of the Constitutional Court, one- fourth of the members of the Council of State, the Chief Public Prosecutor and the Deputy Chief Public Prosecutor of the High Court of Appeals, the members of the Military High Court of Appeals, the members of the Supreme Military Administrative Court and the members of the Supreme Council of Judges and Public Prosecutors.



The President of the Republic shall also exercise powers of election and appointment, and perform the other duties conferred on him or her by the Constitution and laws.



E. Presidential Accountability and Non-accountability



ARTICLE 105. All Presidential decrees except those which the President of the Republic is empowered to enact by himself without the signatures of the Prime Minister and the minister concerned, in accordance with the provisions of the Constitution and other laws, shall be signed by the Prime Minister, and the ministers concerned. The Prime Minister and the ministers concerned shall be accountable for these decrees.



No appeal shall be made to any legal authority, including the Constitutional Court, against the decisions and orders signed by the President of the Republic on his or her own initiative.



The President of the Republic may be impeached for high treason on the proposal of at least one-third of the total number of members of the Turkish Grand National Assembly, and by the decision of at least three-fourths of the total number of members.



F. Acting for the President of the Republic


ARTICLE 106. In the event of a temporary absence of the President of the Republic on account of illness, travel abroad or similar circumstances, the Speaker of the Turkish Grand National Assembly shall serve as Acting President of the Republic and exercise the powers of the President of the Republic until the President of the Republic resumes his or her functions, and in the event that the Presidency falls vacant as a result of death or resignation or for any other reason, until the election of a new President of the Republic.



G. General Secretariat of the President of the Republic


ARTICLE 107. The establishment, the principles of organisation and functioning, and the appointment of General Secretariat of the Presidency of the Republic personnel shall be regulated by Presidential decrees.



H. State Supervisory Council



ARTICLE 108. The State Supervisory Council which shall be attached to the Office of the Presidency of the Republic with the purpose of performing and furthering the regular and efficient functioning of the administration and its observance of law, shall be empowered to conduct upon the request of the President of the Republic all inquiries, investigations and inspections of all public bodies and organisations, all enterprises in which those public bodies and organisations share more than half of the capital, public professional organisations, employers' associations and labour unions at all levels, and public welfare associations and foundations.



The Armed Forces and all judicial organs are outside the jurisdiction of the State Supervisory Council.



The Members and the Chairman to be designated from among the members of the State Supervisory Council shall be appointed by the President of the Republic from among those with the qualifications set forth in the law.



The functioning of the State Supervisory Council, the term of office of its members, and other matters relating to their status shall be regulated by law.



II. Council of Ministers



A. Formation



ARTICLE 109. The Council of Ministers shall consist of the Prime Minister and the ministers.



The Prime Minister shall be appointed by the President of the Republic from among the members of the Turkish Grand National Assembly.



The ministers shall be nominated by the Prime Minister, from among the members of the Turkish Grand National Assembly or from among those eligible for election as deputies, and appointed by the President of the Republic, and they can be dismissed by the President of the Republic, upon the proposal of the Prime Minister when deemed necessary.



B. Taking Office and Vote of Confidence



ARTICLE 110. The complete list of members of the Council of Ministers shall be submitted to the Turkish Grand National Assembly. If the Turkish Grand National Assembly is in recess, it shall be summoned to meet.



The Government Programme of the Council of Ministers shall be read by the Prime Minister or by one of the ministers before the Turkish Grand National Assembly within a week of the formation of the Council of Ministers following which there shall be a vote of confidence. Debate on the vote of confidence shall begin two full days after the reading of the programme and the vote shall be taken one full day after the end of debate.



C. Vote of Confidence While in Office



ARTICLE 111. If the Prime Minister deems it necessary, and after discussing the matter in the Council of Ministers, he or she may ask for a vote of confidence in the Turkish Grand National Assembly.



The request for a vote of confidence shall not be debated before one full day has elapsed from the time it was submitted to the Turkish Grand National Assembly and shall not be put to the vote until one full day has passed after debate.



A request for a vote of confidence shall be rejected only by an absolute majority of the total number of members.



D. Functions and Political Responsibilities



ARTICLE 112. The Prime Minister, as Chairman of the Council of Ministers, shall ensure cooperation among the ministries, and supervise the implementation of the government's general policy.



The members of the Council of Ministers are jointly responsible for the implementation of this policy.



Each minister shall be responsible to the Prime Minister and shall also be responsible for the conduct of affairs under his or her jurisdiction and for the acts and activities of his or her subordinates.



The Prime Minister shall ensure that the ministers exercise their functions in accordance with the Constitution and the laws and shall take corrective measures to this end.



The members of the Council of Ministers who are not deputies shall take their oath before the Turkish Grand National Assembly as written in Article 81, and during their term of office as ministers they shall abide by the rules and conditions to which deputies are subject and shall enjoy parliamentary immunity. They receive the same salaries and allowances as members of the Turkish Grand National Assembly.



E. Ministers, and the Formation of Ministries



ARTICLE 113. The formation, abolition, functions, powers and organisation of the ministries shall be regulated by law.



A minister may act for another if a ministry becomes vacant or if the minister is on leave or absent for a valid reason. However, a minister shall not act for more than one other minister.



A minister who is brought before the Supreme Court by decision of the Turkish Grand National Assembly, shall lose his or her ministerial status. If the Prime Minister is brought before the Supreme Court, the Government shall be considered to have resigned.



If a Ministerial position becomes vacant for any reason, a new appointment shall be made to it within fifteen days.



F. Provisional Council of Ministers During Elections



ARTICLE 114. The Ministers of Justice, Internal Affairs and Communications shall resign prior to general elections from the Turkish Grand National Assembly.



Three days before elections begin or in the event of a decision to hold new elections before the end of the election term, within five days of this decision, the Prime Minister shall appoint independent persons from within or outside the Turkish Grand National Assembly to these Ministries.



In the event of a decision to hold new elections under Article 116, the Council of Ministers shall resign and the President of the Republic shall appoint a Prime Minister to form a Provisional Council of Ministers.



The Provisional Council of Ministers shall be composed of members of the political party groups in proportion to their parliamentary membership with the exception of the ministers of Justice, Internal Affairs, and Communications, who shall be independent persons appointed from within or outside the Turkish Grand National Assembly.



The number of members to be taken from political party groups shall be determined by the President of the Turkish Grand National Assembly, and shall be communicated to the Prime Minister. Party members who do not accept the ministerial posts offered to them, or who subsequently, resign shall be replaced by independent persons from within or outside the Grand National Assembly of Turkey.



The Provisional Council of Ministers shall be formed within five days of publication in the Official Gazette of the decision to hold new elections.



The Provisional Council of Ministers shall not be subject to a vote of confidence.



The Provisional Council of Ministers shall remain in office for the duration of the elections, and until the new Assembly convenes.



G. Regulations



ARTICLE 115. The Council of Ministers may issue regulations governing the mode of implementation of laws or designating matters ordered by law, provided that they do not conflict with existing laws and are examined by the Council of State.



Regulations shall be signed by the President of the Republic and promulgated in the same manner as laws.



H. Calling for Elections for the Turkish Grand National Assembly by the President of the Republic



ARTICLE 116. In cases where the Council of Ministers fails to receive a vote of confidence under Article 110 or is compelled to resign by a vote of no-confidence under Article 99 or 111, and if a new Council of Ministers cannot be formed within forty-five days or the new Council of Ministers fails to receive a vote of confidence, the President of the Republic, in consultation with the President of the Turkish Grand National Assembly, may call for new elections.



If a new Council of Ministers cannot be formed within forty-five days of the resignation of the Prime Minister without being defeated by a vote of confidence or also within forty-five days of elections for the Bureau of the President of the Turkish Grand National Assembly of the newly elected Turkish Grand National Assembly, the President of the Republic may likewise, in consultation with the President of the Turkish Grand National Assembly, call for new elections.



The decision to call for new elections shall be published in the Official Gazette and the election shall be held thereafter.



I. National Defence



A. Offices of Commander-in-Chief and Chief of the General Staff



ARTICLE 117. The Office of Commander-in-Chief is inseparable from the spiritual existence of the Turkish Grand National Assembly and is represented by the President of the Republic.



The Council of Ministers shall be responsible to the Turkish Grand National Assembly for national security and for the preparation of the Armed Forces for the defence of the country.



The Chief of the General Staff is the commander of the Armed Forces, and, in time of war exercises the duties of Commander-in-Chief on behalf of the President of the Republic.



The Chief of the General Staff shall be appointed by the President of the Republic following the proposal of the Council of Ministers; his duties and powers shall be regulated by law. The Chief of the General Staff shall be responsible to the Prime Minister in the exercise of his duties and powers.



The functional relations and scope of jurisdiction of the Ministry of National Defence with regard to the Chief of the General Staff and the Commanders of the Armed Forces shall be regulated by law.



B. National Security Council



ARTICLE 118. (As amended on October 17, 2001)





The National Security Council shall be composed of the Prime Minister, the Chief of the General Staff, Deputy Prime Ministers, Ministers of Justice, National Defence, Internal Affairs, and Foreign Affairs, the Commanders of the Army, Navy and  Air Forces and the General Commander of the Gendarmerie, under the chairmanship of the President of the Republic.





Depending on the particulars of the agenda, Ministers and other persons concerned may be invited to meetings of the Council and their views heard.





The National Security Council shall submit to the Council of the Ministers its views on the advisory decisions that are taken and ensuring the necessary condition with regard to the formulation, establishment, and implementation of the national security policy of the state. The Council of Ministers shall evaluate decisions of the National Security Council concerning the measures that it deems necessary for the preservation of the existence and independence of the state, the integrity and indivisibility of the country and the peace and security of society.





The agenda of the National Security Council shall be drawn up by the President of the Republic taking into account the proposals of the Prime Minister and the Chief of the General Staff.



In the absence of the President of the Republic, the National Security Council shall meet under the chairmanship of the Prime Minister.



The organisation and duties of the General Secretariat of the National Security Council shall be regulated by law.



III. Procedure Governing Emergency Rule



A. States of Emergency



1. Declaration of State of Emergency on Account of Natural Disaster or Serious Economic Crisis



ARTICLE 119. In the event of natural disaster, dangerous epidemic diseases or a serious economic crisis, the Council of Ministers, meeting under the chairmanship of the President of the Republic may declare a state of emergency in one or more regions or throughout the country for a period not exceeding six months.



2. Declaration of State of Emergency on Account of Widespread Acts of Violence and Serious Deterioration of Public Order



ARTICLE 120. In the event of serious indications of widespread acts of violence aimed at the destruction of the free democratic order established by the Constitution or of fundamental rights and freedoms, or serious deterioration of public order because of acts of violence, the Council of Ministers, meeting under the chairmanship of the President of the Republic, after consultation with the National Security Council, may declare a state of emergency in one or more regions or throughout the country for a period not exceeding six months.



3. Rules Relating to the State of Emergency



ARTICLE 121. In the event of a declaration of a state of emergency under the provisions of Articles 119 and 120 of the Constitution, this decision shall be published in the Official Gazette and shall be submitted immediately to the Turkish Grand National Assembly for approval. If the Turkish Grand National Assembly is in recess, it shall be assembled immediately. The Assembly may alter the duration of the state of emergency, extend the period, for a maximum of four months only, each time at the request of the Council of Ministers, or may lift the state of emergency.



The financial, material and labour obligations which are to be imposed on citizens in the event of the declaration of state of emergency under Article 119 and, applicable according to the nature of each kind of state of emergency, the procedure as to how fundamental rights and freedoms shall be restricted or suspended in line with the principles of Article 15, how and by what means the measures necessitated by the situation shall be taken, what sort of powers shall be conferred on public servants, what kind of changes shall be made in the status of officials, and the procedure governing emergency rule, shall be regulated by the Law on State of Emergency.



During the state of emergency, the Council of Ministers meeting under the chairmanship of the President of the Republic, may issue decrees having the force of law on matters necessitated by the state of emergency. These decrees shall be published in the Official Gazette, and shall be submitted to the Turkish Grand National Assembly on the same day for approval; the time limit and procedure for their approval by the Assembly shall be indicated in the Rules of Procedure.



B. Martial Law, Mobilization and State of War



ARTICLE 122. The Council of Ministers, under the chairmanship of the President of the Republic, after consultation with the National Security Council, may declare martial law in one or more regions or throughout the country for a period not exceeding six months, in the event of widespread acts of violence which are more dangerous than the cases necessitating a state of emergency and which are aimed at the destruction of the free democratic order or the fundamental rights and freedoms embodied in the Constitution; or in the event of war, the emergence of a situation necessitating war, an uprising, or the spread of violent and strong rebellious actions against the motherland and the Republic, or widespread acts of violence of either internal or external origin threatening the indivisibility of the country and the nation. This decision shall be published immediately in the Official Gazette, and shall be submitted for approval to the Turkish Grand National Assembly, on the same day. If the Turkish Grand National Assembly is in recess, it shall be assembled immediately. The Turkish Grand National Assembly may, when it deems necessary, reduce or extend the period of martial law or lift it.



During the period of martial law, the Council of Ministers meeting under the chairmanship of the President of the Republic may issue decrees having the force of law on matters necessitated by the state of martial law.



These decrees shall be published in the Official Gazette and shall be submitted for approval to the Turkish Grand National Assembly on the same day. The time limit and procedure for their approval by the Assembly shall be indicated in the Rules of Procedure.



Extension of the period of martial law for a maximum of four months each time, shall require a decision by the Turkish Grand National Assembly. In the event of state of war, the limit of four months does not apply.



In the event of martial law, mobilization and state of war, the provisions to be applied and conduct of affairs, relations with the administration, the manner in which freedoms are to be restricted or suspended and the obligations to be imposed on citizens in a state of war or in the event of emergence of a situation necessitating war, shall be regulated by law.



The Martial Law Commanders shall exercise their duties under the authority of the Chief of the General Staff.



IV. Administration



A. Fundamentals of the Administration



1. Integral Unity and Public Legal Personality of the Administration



ARTICLE 123. The administration forms a whole with regard to its structure and functions, and shall be regulated by law.



The organisation and functions of the administration are based on the principles of centralization and local administration.



Public corporate bodies shall be established only by law, or by the authority expressly granted by law.



2. By-laws



ARTICLE 124. The Prime Ministry, the ministries, and public corporate bodies may issue by-laws in order to ensure the application of laws and regulations relating to their particular fields of operation, provided that they are not contrary to these laws and regulations.



The law shall designate which by-laws are to be published in the Official Gazette.



B. Recourse to Judicial Review



ARTICLE 125. (As amended on August 13, 1999)



Recourse to judicial review shall be available against all actions and acts of administration. National or international arbitration may be suggested to settle the disputes which arise from conditions and contracts under which concessions are granted concerning public services. Only those disputes involving foreign elements can be solved by international arbitration.



The acts of the President of the Republic on his or her own competence, and the decisions of the Supreme Military Council are outside the scope of judicial review.



In suits filed against administrative acts, the statute of limitations shall be effective from the date of written notification.



Judicial power is limited to the verification of the conformity of the actions and acts of the administration with law. No judicial ruling shall be passed which restricts the exercise of the executive function in accordance with the forms and principles prescribed by law, which has the quality of an administrative action and act, or which removes discretionary powers.



If the implementation of an administrative act should result in damages which are difficult or impossible to compensate for, and at the same time this act is clearly unlawful, then a stay of execution may be decided upon, stating the reasons why.



The law may restrict the issuing of stay of execution orders in cases of state of emergency, martial law, mobilisation and state of war, and for reasons of national security, public order and public health.



The administration shall be liable to compensate for damages resulting from its actions and acts.



C. Organisation of the Administration



1. Central Administration



ARTICLE 126. In terms of central administrative structure, Turkey is divided into provinces on the basis of geographical situation and economic conditions, and public service requirements; provinces are further divided into lower levels of administrative districts.



The administration of the provinces is based on the principle of devolution of wider powers.



Central administrative organisations comprising several provinces may be established to ensure efficiency and coordination of public services. The functions and powers of these organisations shall be regulated by law.



2. Local Administrations



ARTICLE 127. (As amended on July 23, 1995)



Local administrative bodies are public corporate entities established to meet the common local needs of the inhabitants of provinces, municipal districts and villages, whose decision-making organs are elected by the electorate as described in law, and whose principles of structure are also determined by law.



The formation, duties and powers of the local administration shall be regulated by law in accordance with the principle of local administration.



The elections for local administrations shall be held every five years in accordance with the principles set forth in Article 67. However, general or by-elections for local administrative bodies or for members thereof, which are to be held within a year before or after the general or by-elections for deputies, shall be held simultaneously with the general or by-elections for deputies. Special administrative arrangements may be introduced by law for larger urban centres.



The procedures dealing with objections to the acquisition by elected organs of local government or their status as an organ, and their loss of such status, shall be resolved by the judiciary. However, as a provisional measure, the Minister of Internal Affairs may remove from office those organs of local administration or their members against whom investigation or prosecution has been initiated on grounds of offences related to their duties, pending judgement.



The central administration has the power of administrative trusteeship over the local governments in the framework of principles and procedures set forth by law with the objective of ensuring the functioning of local services in conformity with the principle of the integral unity of the administration, securing uniform public service, safeguarding the public interest and meeting local needs, in an appropriate manner.



The formation of local administrative bodies into a union with the permission of the Council of Ministers for the purpose of performing specific public services; and the functions, powers, financial and security arrangements of these unions, and their reciprocal ties and relations with the central administration, shall be regulated by law. These administrative bodies shall be allocated financial resources in proportion to their functions.



D. Provisions Relating to Public Servants



1. General Principles



ARTICLE 128. The fundamental and permanent functions required by the public services that the state, state economic enterprises and other public corporate bodies are assigned to perform, in accordance with principles of general administration, shall be carried out by public servants and other public employees.



The qualifications of public servants and other public employees, procedures governing their appointments, duties and powers, their rights and responsibilities, salaries and allowances, and other manners related to their status shall be regulated by law.



The procedure and principles governing the training of senior administrators shall be specially regulated by law.



2. Duties and Responsibilities, and Guarantees During Disciplinary Proceedings



ARTICLE 129. Public servants and other public employees are obliged to carry out their duties with loyalty to the Constitution and the laws.

Public servants, other public employees and members of public professional organisations or their higher bodies shall not be subjected to disciplinary penalties without being granted the right of defence.



Disciplinary decisions shall be subject to judicial review, with the exception of warnings and reprimands.



Provisions concerning the members of the Armed Forces, judges and prosecutors are reserved.



Actions for damages arising from faults committed by public servants and other public employees in the exercise of their duties shall be brought against the administration only in accordance with the procedure and conditions prescribed by law, and subject to recourse to them.



Prosecution of public servants and other public employees for alleged offences shall be subject, except in cases prescribed by law, to the permission of the administrative authority designated by law.



E. Institutions of Higher Education and Their Higher Bodies



1. Institutions of Higher Education



ARTICLE 130. For the purpose of training manpower under a system of contemporary education and training principles and meeting the needs of the nation and the country, universities comprising several units will be established by the state and by law as public corporations having autonomy in teaching, assigned to educate, train at different levels after secondary education, and conduct research, to act as consultants, to issue publications and to serve the country and humanity.



Institutions of higher education, under the supervision and control of the state, can be established by foundations in accordance with the procedures and principles set forth in the law provided that they do not pursue lucrative aims.



The law shall provide for a balanced geographical distribution of universities throughout the country.



Universities, members of the teaching staff and their assistants may freely engage in all kinds of scientific research and publication. However, this shall not include the liberty to engage in activities directed against the existence and independence of the state, and against the integrity and indivisibility of the Nation and the Country.



Universities and units attached to them are under the control and supervision of the state and their security is ensured by the state.



University rectors shall be appointed by the President of the Republic, and faculty deans by the Higher Education Council, in accordance with the procedures and provisions of the law.



The administrative and supervisory organs of the universities and the teaching staff may not for any reason whatsoever be removed from their office by authorities other than those of the competent organs of the university or by the Higher Education Council.



The budgets drawn up by universities, after being examined and approved by the Higher Education Council shall be presented to the Ministry of National Education, and shall be put into effect and supervised in conformity with the principles applied to general and subsidiary budgets.



The establishment of institutions of higher education and their organs, their functioning and elections, their duties, authorities and responsibilities, the procedures to be followed by the state in the exercise of the right to supervise and inspect the universities, the duties of the teaching staff, their titles, appointments, promotions and retirement, the training of the teaching staff, the relations of the universities and the teaching staff with public institutions and other organisations, the level and duration of education, admission of students into institutions of higher education, attendance requirements and fees, principles relating to assistance to be provided by the state, disciplinary and penalty matters, financial affairs, personnel rights, conditions to be conformed with by the teaching staff, the assignment of the teaching staff in accordance with inter-university requirements, the pursuance of training and education in freedom and under guarantee and in accordance with the requirements of contemporary science and technology, and the use of financial resources provided by the state to the Higher Education Council and the universities, shall be regulated by law.



Institutions of higher education established by foundations shall be subject to the provisions set forth in the Constitution for state institutions of higher education, as regards the academic activities, recruitment of teaching staff and security, except for financial and administrative matters.



2. Superior Bodies of Higher Education (As amended on May 22, 2004)



ARTICLE 131. The Higher Education Council shall be established to plan, organise, administer, and supervise education provided by institutions of higher education, to orient teaching activities, education and scientific research, to ensure the establishment and development of these institutions in conformity with the objectives and principles set forth by law, to ensure the effective use of the resources allotted to the universities, and to plan the training of the teaching staff.



The Higher Education Council is composed of members appointed by the President of the Republic from among candidates who are nominated by the Council of Ministers and universities, and in accordance with the numbers, qualifications and procedures prescribed by law, priority being given to those who have served successfully as faculty members or rectors, and of members directly appointed by the President of the Republic.



The organisation, functions, authority, responsibilities and operating principles of the Council shall be regulated by law.



3. Institutions of Higher Education Subject to Special Provisions



ARTICLE 132. Institutions of Higher Education attached to the Turkish Armed Forces and to security organisations are subject to the provisions of their respective special laws.



F. Radio and Television Administrations and State-Financed News Agencies



ARTICLE 133. Radio and television stations shall be established and administered freely in conformity with rules to be regulated by law.



The unique radio and television administration established by the state as a public corporate body and the news agencies which receive aid from public corporate bodies shall be autonomous and their broadcasts shall be impartial.



G. The Atatürk High Institution of Culture, Language and History



ARTICLE 134. The "Atatürk High Institution of Culture, Language and History" shall be established as a public corporate body, under the moral aegis of Atatürk, under the supervision of and with the support of the President of the Republic, attached to the Office of the Prime Minister, and composed of the Atatürk Centre of Research, the Turkish Language Society, the Turkish Historical Society and the Atatürk Cultural Centre, in order to conduct scientific research, to produce publications and to disseminate information on the thought, principles and reforms of Atatürk, Turkish culture, Turkish history and the Turkish language.



The financial income of the Turkish Language Society and Turkish Historical Society, bequeathed to them by Atatürk in his will are reserved and shall be allocated to them accordingly.



The establishment, organs, operating procedures and personnel matters of the Atatürk High Institution of Culture, Language and History, and its authority over the institutions within it, shall be regulated by law.



H. Public Professional Organisations



ARTICLE 135. (As amended on July 23, 1995)



Public professional organisations and their higher organisations are public corporate bodies established by law, with the objectives of meeting the common needs of the members of a given profession, to facilitate their professional activities, to ensure the development of the profession in keeping with common interests, to safeguard professional discipline and ethics in order to ensure integrity and trust in relations among its members and with the public; their organs shall be elected by secret ballot by their members in accordance with the procedure set forth in the law, and under judicial supervision.



Persons regularly employed in public institutions, or in state economic enterprises shall not be required to become members of public professional organisations.



These professional organizations shall not engage in activities outside the aims for which they are established.



Political parties shall not nominate candidates in elections for the organs of these professional organizations or their higher bodies.



The rules concerning the administrative and financial supervision of these professional organizations by the state shall be prescribed by law.



The responsible organs of professional organizations which engage in activities beyond their objectives shall be dissolved by court decision at the request of the authority designated by law or the public prosecutor, and new organs shall be elected in their place.



However, in cases where delay endangers national security, public order and in cases where it is necessary to prevent the perpetration or the continuation of a crime or to effect an arrest, an authority designated by law may be vested with power to suspend professional organizations from activity. The decision of the said authority shall be submitted for approval to the responsible judge within twenty-four hours. Unless the judge declares a decision within forty-eight hours, this administrative decision is annulled automatically.



I. Department of Religious Affairs



ARTICLE 136. The Department of Religious Affairs, which is within the general administration, shall exercise its duties prescribed in its particular law, in accordance with the principles of secularism, removed from all political views and ideas, and aiming at national solidarity and integrity.



J. Unlawful Orders



ARTICLE 137. A person employed in public services, irrespective of his position or status, when he finds an order given by his superiors to be contrary to the provisions of by-laws, regulations, laws, or the Constitution shall not carry it out, and shall inform the person giving the order of this inconsistency. However, if his superior insists on the order and renews it in writing, his order shall be executed; in this case the person executing the order shall not be held responsible.



An order which in itself constitutes an offence shall under no circumstances be executed; the person who executes such an order shall not evade responsibility.



Exceptions designated by law relating to the execution of military duties and the protection of public order or public security in urgent situations are reserved.



PART THREE


JUDICIAL POWER



I. General Provisions



A. Independence of the Courts



ARTICLE 138. Judges shall be independent in the discharge of their duties; they shall give judgment in accordance with the Constitution, law, and their personal conviction conforming with the law.



No organ, authority, office or individual may give orders or instructions to courts or judges relating to the exercise of judicial power, send them circulars, or make recommendations or suggestions.



No questions shall be asked, debates held, or statements made in the Legislative Assembly relating to the exercise of judicial power concerning a case under trial.



Legislative and executive organs and the administration shall comply with court decisions; these organs and the administration shall neither alter them in any respect, nor delay their execution.



B. Security of Tenure of Judges and Public Prosecutors


ARTICLE 139. Judges and public prosecutors shall not be dismissed, or retired before the age prescribed by the Constitution; nor shall they be deprived of their salaries, allowances or other rights relating to their status, even as a result of the abolition of court or post.



Exceptions indicated in law relating to those convicted for an offence requiring dismissal from the profession, those who are definitely established as unable to perform their duties on account of ill-health, and those determined as unsuitable to remain in the profession, are reserved.



C. Judges and Public Prosecutors



ARTICLE 140. Judges and public prosecutors shall serve as judges and public prosecutors of courts of justice and of administrative courts. These duties shall be carried out by professional judges and public prosecutors.



Judges shall discharge their duties in accordance with the principles of the independence of the courts and the security of tenure of judges.



The qualifications, appointment, rights and duties, salaries and allowances of judges and public prosecutors, their promotion, temporary or permanent change in their duties or posts, the initiation of disciplinary proceedings against them and the subsequent imposition of disciplinary penalties, the conduct of investigation concerning them and the subsequent decision to prosecute them on account of offences committed in connection with, or in the course of, their duties, the conviction for offences or instances of incompetence requiring their dismissal from the profession, their in-service training and other matters relating to their personnel status shall be regulated by law in accordance with the principles of the independence of the courts and the security of tenure of judges.



Judges and public prosecutors shall exercise their duties until they reach the age of sixty-five; promotion according to age and the retirement of military judges shall be prescribed by law.



Judges and public prosecutors shall not assume official or public functions other than those prescribed by law.



Judges and public prosecutors shall be attached to the Ministry of Justice where their administrative functions are concerned.



Those judges and public prosecutors working in administrative posts within the system of legal services shall be subject to the same provisions as other judges and public prosecutors. Their categories and grades shall be determined according to the principles applying to judges and public prosecutors and they shall enjoy all the rights accorded to judges and public prosecutors.



D. Publicity of Hearings and Verdict Justification



ARTICLE 141. Court hearings shall be open to the public. It may be decided to conduct all or part of the hearings in closed session only in cases where absolutely required for reasons of public morality or public security.



Special provisions shall be provided in the law with respect to the trial of minors.



The decisions of all courts shall be made in writing with a statement of justification.



It is the duty of the judiciary to conclude trials as quickly as possible and at minimum cost.



E. Organisation of Courts



ARTICLE 142. The organisation, functions and jurisdiction of the courts, their functioning and trial procedures shall be regulated by law.



F. State Security Courts



ARTICLE 143. (Annulled)



State Security Courts shall be established to deal with offences against the indivisible integrity of the State with its territory and nation, the free democratic order, or against the Republic whose characteristics are defined in the Constitution, and offences directly involving the internal and external security of the State. However, provisions concerning state of martial law and state of war are reserved.



State Security Courts shall consist of a president, two regular members and one substitute, one chief public prosecutor and a sufficient number of public prosecutors.



The president, two regular and one substitute members and the chief public prosecutor from among the first category judges and public prosecutors, the public prosecutors from the other public prosecutors of the Republic shall be appointed by the Supreme Council of Judges and Public Prosecutors in accordance with the procedures prescribed by special law for a four-year term; those whose term of office has expired may be reappointed.



The High Court of Appeals is the competent authority to examine appeals against the judgements of the State Security Court.



Other provisions relating to the functioning, the duties and jurisdiction and the trial procedures of the State Security Court shall be prescribed by law.



G. Supervision of Judges and Public Prosecutors



ARTICLE 144. Supervision of judges and public prosecutors with regard to the performance of their duties in accordance with laws, regulations, by-laws and circulars (administrative circulars, in the case of judges), investigation into whether they have committed offences in connection with, or in the course of their duties, whether their behaviour and attitude are in conformity with their status and duties and if necessary, inquiry and investigations concerning them shall be made by judiciary inspectors with the permission of the Ministry of Justice. The Minister of Justice may request the investigation or inquiry to be conducted by a judge or public prosecutor who is senior to the judge or public prosecutor to be investigated.



H. Military Justice



ARTICLE 145. Military justice shall be exercised by military courts and military disciplinary courts. These courts shall have jurisdiction to try military personnel for military offences, for offences committed by them against other military personnel or in military places, or for offences connected with military service and duties.



Military courts also have jurisdiction to try non-military persons for military offences specified in the special law; and for offences committed while performing their duties specified by law, or against military personnel on military places specified by law.



The offences and persons falling within the jurisdiction of military courts in time of war or under martial law, their organisation and the appointment, where necessary, of judges and public prosecutors from courts of justice to military courts shall be regulated by law.



The organisation of military judicial organs, their functions, matters relaying to the status of military judges, relations between military judges acting as military prosecutors and the office of commander under which they serve, shall be regulated by law in accordance with the principles of the independence of courts and the security of tenure of judges and with the requirements of military service. Relations between military judges and the office of commander under which they serve, regarding the requirements of military service apart from judicial functions, shall also be prescribed by law.



II. Higher Courts



A. The Constitutional Court


1. Organisation



ARTICLE 146. The Constitutional Court shall be composed of eleven regular and four substitute members.



The President of the Republic shall appoint two regular and two substitute members from the High Court of Appeals, two regular and one substitute member from the Council of State, and one member each from the Military High Court of Appeals, the High Military Administrative Court and the Audit Court, three candidates being nominated for each vacant office by the Plenary Assemblies of each court from among their respective presidents and members, by an absolute majority of the total number of members; the President of the Republic shall also appoint one member from a list of three candidates nominated by the Higher Education Council from among members of the teaching staff of institutions of higher education who are not members of the Council, and three members and one substitute member from among senior administrative officers and lawyers.



To qualify for appointments as regular or substitute members of the Constitutional Court, members of the teaching staff of institutions of higher education, senior administrative officers and lawyers shall be required to be over the age of forty and to have completed their higher education, or to have served at least fifteen years as a member of the teaching staff of institutions of higher education or to have actually worked at least fifteen years in public service or to have practiced as a lawyer for at least fifteen years.



The Constitutional Court shall elect a president and Deputy president from among its regular members for a term of four years by secret ballot and by an absolute majority of the total number of members. They may be re-elected at the end of their term of office.



The members of the Constitutional Court shall not assume other official and private functions, apart from their main functions.



2. Termination of Membership



ARTICLE 147. The members of the Constitutional Court shall retire on reaching the age of sixty-five. Membership in the Constitutional Court shall terminate automatically if a member is convicted of an offence requiring his dismissal from the judicial profession, it shall terminate by a decision of an absolute majority of the total number of members of the Constitutional Court if it is definitely established that he is unable to perform his duties on account of ill-health.



3. Functions and Powers



ARTICLE 148. The Constitutional Court shall examine the constitutionality, in respect of both form and substance, of laws, decrees having the force of law, and the Rules of Procedure of the Turkish Grand National Assembly. Constitutional amendments shall be examined and verified only with regard to their form. However, no action shall be brought before the Constitutional Court alleging unconstitutionality as to the form or substance of decrees having the force of law issued during a state of emergency, martial law or in time of war.



The verification of laws as to form shall be restricted to consideration of whether the requisite majority was obtained in the last ballot; the verification of constitutional amendments shall be restricted to consideration of whether the requisite majorities were obtained for the proposal and in the ballot, and whether the prohibition on debates under urgent procedure was complied with. Verification as to form may be requested by the President of the Republic or by one-fifth of the members of the Turkish Grand National Assembly. Applications for annulment on the grounds of defect in form shall not be made more than ten days after the date on which the law was promulgated; nor shall objection be raised.



The President of the Republic, members of the Council of Ministers, presidents and members of the Constitutional Court, of the High Court of Appeals, of the Council of State, of the Military High Court of Appeals, of the High Military Administrative Court of Appeals, their Chief Public Prosecutors, Deputy Public Prosecutors of the Republic, and the presidents and members of the Supreme Council of Judges and Public Prosecutors, and of the Audit Court shall be tried for offences relating to their functions by the Constitutional Court in its capacity as the Supreme Court.



The Chief Public Prosecutor of the Republic or Deputy Chief Public Prosecutor of the Republic shall act as public prosecutor in the Supreme Court.



The judgements of the Supreme Court shall be final.



The Constitutional Court shall also perform the other functions given to it by the Constitution.





4. Functioning and Trial Procedure



ARTICLE 149. (As amended on October 17, 2001)



The Constitutional Court shall convene with its president and ten members, and shall take decisions by absolute majority. Decision of annulment of Constitutional amendments and closure in the cases of the political parties shall be taken by three-fifths majority.





The Constitutional Court shall give priority to the consideration of, and to decisions on, applications for annulment on the grounds of defect in form.



The organisation and trial procedures of the Constitutional Court shall be determined by law; its method of work and the division of labour among its members shall be regulated by the Rules of Procedure made by the Court.



The Constitutional Court shall examine cases on the basis of documents in the case file, except where it acts as the Supreme Court. However, when it deems necessary, it may call on those concerned and those having knowledge relevant to the case, to present oral explanations (Annexed sentence: 23.7.1995 - 4121/14 Article) and in lawsuits on whether to permanently dissolve a political party or not, the Constitutional Court shall hear the defence of the chairman of the party whose dissolution is in process or of a proxy appointed by the chairman, after the Chief Public Prosecutor of the Republic.



5. Annulment Action



ARTICLE 150. The President of the Republic, parliamentary groups of the party in power and of the main opposition party and a minimum of one-fifth of the total number of members of the Turkish Grand National Assembly shall have the right to apply for annulment action to the Constitutional Court, based on the assertion of the unconstitutionality of laws in form and in substance, of decrees having the force of law, of Rules of Procedure of the Turkish Grand National Assembly or of specific articles or provisions thereof. If more than one political party is in power, the right of the parties in power to apply for annulment action shall be exercised by the party having the greatest number of members.



6. Time Limit for Annulment Action



ARTICLE 151. The right to apply for annulment directly to the Constitutional Court shall lapse sixty days after publication in the Official Gazette of the contested law, the decree having the force of law, or the Rules of Procedure.



7. Contention of Unconstitutionality Before Other Courts



ARTICLE 152. If a court which is trying a case, finds that the law or the decree having the force of law to be applied is unconstitutional, or if it is convinced of the seriousness of a claim of unconstitutionality submitted by one of the parties, it shall postpone the consideration of the case until the Constitutional Court decides on the issue.



If the court is not convinced of the seriousness of the claim of unconstitutionality, such a claim together with the main judgment shall be decided upon by the competent authority of appeal.



The Constitutional Court shall decide on the matter and make public its judgment within five months of receiving the contention. If no decision is reached within this period, the trial court shall conclude the case under existing legal provisions. However, if the decision on the merits of the case becomes final, the trial court is obliged to comply with it.



No allegation of unconstitutionality shall be made with regard to the same legal provision until ten years elapse after publication in the Official Gazette of the decision of the Constitutional Court dismissing the application on its merits.



8. Decisions of the Constitutional Court



ARTICLE 153. The decisions of the Constitutional Court are final. Decisions of annulment cannot be made public without a written statement of reasons.



In the course of annulling the whole, or a provision, of laws or decrees having the force of law, the Constitutional Court shall not act as a law-maker and pass judgment leading to new implementation.



Laws, decrees having the force of law, or the Rules of Procedure of the Turkish Grand National Assembly or provisions thereof, shall cease to have effect from the date of publication in the Official Gazette of the annulment decision. Where necessary, the Constitutional Court may also decide on the date on which the annulment decision shall come into effect. That date shall not be more than one year from the date of publication of the decision in the Official Gazette.



In the event of the postponement of the date on which an annulment decision is to come into effect, the Turkish Grand National Assembly shall debate and decide with priority on the draft bill or law proposal, designed to fill the legal void arising from the annulment decision.



Annulment decisions cannot be applied retroactively.



Decisions of the Constitutional Court shall be published immediately in the Official Gazette, and shall be binding on the legislative, executive, and judicial organs, on the administrative authorities, and on persons and corporate bodies.



B. The High Court of Appeals


ARTICLE 154. The High Court of Appeals is the last instance for reviewing decisions and judgements given by courts of justice and which are not referred by law to other judicial authority. It shall also be the first and last instance court for dealing with specific cases prescribed by law.



Members of the High Court of Appeals shall be appointed by the Supreme Council of Judges and Public Prosecutors from among first category judges and public prosecutors of the Republic, of the courts of justice, or those considered to be members of this profession, by secret ballot and by an absolute majority of the total number of members.



The first president, first deputy presidents and heads of division shall be elected by the Plenary Assembly of the High Court of Appeals from among its own members, for a term of four years, by secret ballot and by an absolute majority of the total number of members; they may be re-elected at the end of their term of office.



The Chief Public Prosecutor of the Republic and the Deputy Chief Public Prosecutor of the Republic of the High Court of Appeals shall be appointed by the President of the Republic for a term of four years from among five candidates nominated for each office by the Plenary Assembly of the High Court of Appeals from among its own members by secret ballot. They may be re-elected at the end of their term of office.



The organisation, the function, the qualifications and procedures of election of the president, deputy presidents, the heads of division and members and the Chief Public Prosecutor of the Republic and the Deputy Chief Public Prosecutor of the Republic of the High Court of Appeals shall be regulated by law in accordance with the principles of the independence of courts and the security of tenure of judges.



C. Council of State


ARTICLE 155. (As amended on August 13, 1999)



The Council of State is the last instance for reviewing decisions and judgements given by administrative courts and which are not referred by law to other administrative courts. It shall also be the first and last instance for dealing with specific cases prescribed by law.



The Council of State shall try administrative cases, give its opinion within two months of time on draft legislation, the conditions and the contracts under which concessions are granted concerning public services which are submitted by the Prime Minister and the Council of Ministers, examine draft regulations, settle administrative disputes and discharge other duties as prescribed by law.



Three-fourths of the members of the Council of State shall be appointed by the Supreme Council of Judges and Public Prosecutors from among the first category administrative judges and public prosecutors, or those considered to be of this profession; and the remaining quarter by the President of the Republic from among officials meeting the requirements designated by law.



The president, chief public prosecutor, deputy president, and heads of division of the Council of State shall be elected by the Plenary Assembly of the Council of State from among its own members for a term of four years by secret ballot and by an absolute majority of the total number of members. They may be re-elected at the end of their term of office.



The organization, the functioning, the qualifications and procedures of election of the president, the chief public prosecutor, the deputy presidents and the heads of division and the members of the Council of State, shall be regulated by law in accordance with the principles of specific nature of the administrative jurisdiction, and of the independence of the Courts and the security of tenure of judges.



D. Military High Court of Appeals



ARTICLE 156. The Military High Court of Appeals is the last instance for reviewing decisions and judgements given by military courts. It shall also be the first and last instance for dealing with specific cases designated by law concerning military personnel.



Members of the Military High Court of Appeals shall be appointed by the President of the Republic from among three candidates nominated for each vacant office by the Plenary Assembly of the Military High Court of Appeals from among military judges of the first category, by secret ballot and by an absolute majority of the total number of members.



The president, chief public prosecutor, second presidents and heads of division of the Military High Court of Appeals shall be appointed according to rank and seniority from among the members of the Military High Court of Appeals.



The organisation, the functioning of the Military High Court of Appeals, and disciplinary and personnel matters relating to the status of its members shall be regulated by law in accordance with the principles of the independence of the courts and the security of tenure of judges and with the requirements of military service.



E. High Military Administrative Court of Appeals



ARTICLE 157. The High Military Administrative Court of Appeals shall be the first and last instance court for the judicial supervision of disputes arising from administrative acts and actions involving military personnel or relating to military service, even if such acts and actions have been carried out by civilian authorities. However, in disputes arising from the obligation to perform military service, there shall be no condition that the person concerned be a member of the military body.



Members of the High Military Administrative Court of Appeals who are military judges shall be appointed by the President of the Republic from a list of three candidates nominated for each vacant office by the president and members of the Court, who are also military judges, by secret ballot and by an absolute majority of the total number of such members, from among military judges of the first category; members who are not military judges shall be appointed by the President of the Republic from a list of three candidates nominated for each vacant office by the Chief of the General Staff from among officers holding the rank and qualifications prescribed by law.



The term of office of members who are not military judges shall not exceed four years.



The president, chief public prosecutor and head of division of the Court shall be appointed from among military judges according to rank and seniority.



The organisation and functioning of the High Military Administrative Court, its procedure, disciplinary affairs and other matters relating to the status of its members shall be regulated by law in accordance with the principles of the independence of the courts and the security of tenure of judges within the requirements of military service.



F. Court of Jurisdictional Disputes



ARTICLE 158. The Jurisdictional Court of Disputes shall be empowered to deliver final judgements in disputes between courts of justice, and administrative and military courts concerning their jurisdiction and decisions.



The organisation of the Jurisdictional Court of Disputes the qualifications of its members and the procedure for their election, and its functioning shall be regulated by law. The office of president of this Court shall be held by a member delegated by the Constitutional Court from among its own members.



Decisions of the Constitutional Court shall take precedence in jurisdictional disputes between the Constitutional Court and other courts.



III. Supreme Council of Judges and Public Prosecutors


ARTICLE 159. The Supreme Council of Judges and Public Prosecutors shall be established and shall exercise its functions in accordance with the principles of the independence of the courts and the security of tenure of judges.



The President of the Council is the Minister of Justice. The Undersecretary to the Minister of Justice shall be an ex-officio member of the Council. Three regular and three substitute members of the Council shall be appointed by the President of the Republic for a term of four years from a list of three candidates nominated for each vacant office by the Plenary Assembly of the High Court of Appeals from among its own members and two regular and two substitute members shall be similarly appointed from a list of three candidates nominated for each vacant office by the Plenary Assembly of the Council of State. They may be re-elected at the end of their term of office. The Council shall elect a deputy president from among its elected regular members.



The Supreme Council of Judges and Public Prosecutors shall deal with the admission of judges and public prosecutors of courts of justice and of administrative courts into the profession, appointments, transfers to other posts, the delegation of temporary powers, promotion, and promotion to the first category, the allocation of posts, decisions concerning those whose continuation in the profession is found to be unsuitable, the imposition of disciplinary penalties and removal from office. It shall take final decisions on proposals by the Ministry of Justice concerning the abolition of a court or an office of judge or public prosecutor, or changes in the jurisdiction of a court. It shall also exercise the other functions given to it by the Constitution and laws.



There shall be no appeal to any judicial instance against the decisions of the Council.



The functioning of the Council and methods of performing its duties, the procedure governing election and working methods, the principles relating to the examination of objections within the Council shall be regulated by law.



The Minister of Justice is empowered to appoint judges and public prosecutors with their consent, to temporary or permanent functions in the central offices of the Ministry of Justice.



The Minister of Justice may, in cases where delay is deemed prejudicial, confer temporary powers on judges or public prosecutors to prevent the disruption of services, subject to the approval of the Supreme Council of Judges and Public Prosecutors at its first meeting thereafter.



IV. Audit Court (As amended on October 29, 2005)



ARTICLE 160. The Audit Court shall be charged with auditing, on behalf of the Turkish Grand National Assembly, all accounts related to revenues, expenditures and properties of the government departments financed by general and subsidiary budgets, with taking final decisions on the acts and accounts of the responsible officials, and with exercising the functions required of it by law in matters of inquiry, auditing and judgment. Parties concerned may file a single request for reconsideration of a final decision of the Audit Court within fifteen days of the date of written notification of the decision. No applications for judicial review of such decisions shall be filed in administrative courts.



Regarding taxes and similar financial obligations, when there is disagreement between the decisions of the Council of State and the Audit Court, the Council of State's will prevail.



The supervision and final decision on the accounts of local administration are made by the Audit Court.



The establishment, functioning, supervisory procedures, qualifications, appointments, tasks and duties, rights and obligations and other matters concerning the status of its members and guarantees of the President and the members of the Court shall be regulated by law.



PART FOUR


FINANCIAL AND ECONOMIC PROVISIONS



CHAPTER ONE


FINANCIAL PROVISIONS



I. Budget


A. Preparation and Implementation of the Budget



ARTICLE 161. The expenditure of the state and those of public corporations other than state economic enterprises shall be determined by annual budgets.



The beginning of the fiscal year and the preparation and implementation of the general and subsidiary budgets shall be defined by law.



The law may prescribe special periods and procedures for investments relating to development plans, or for business and services expected to last more than one year.



No provisions other than those pertaining to the budget shall be included in the Budget Act.



B. Debate on the Budget



ARTICLE 162. (As amended on October 29, 2005) The Council of Ministers shall submit the draft of general and subsidiary budgets and the report containing the national budgetary estimates to the Turkish Grand National Assembly at least seventy-five days before the beginning of the fiscal year.



The draft budgets and the reports shall be considered by the Budget Committee, which shall be composed of forty members. In the composition of this Committee, the proportional representation of the various political party groups and independent members in the Assembly, shall be taken into consideration subject to the allocation of at least twenty-five seats to members of the party or parties in power.



Draft budget, which shall be adopted by the Budget Committee within fifty-five days shall thereafter be considered by the Assembly and shall be decided on before the beginning of the fiscal year.



Members of the Turkish Grand National Assembly shall express their opinions on ministerial, departmental and subsidiary budgets during the debates held in Plenary Session on each budget as a whole; the various headings and motions for amendments shall be read out and put to the vote without separate debate.



During debates in the plenary session on the draft Budget Act, members of the Turkish Grand National Assembly shall not make proposals which entail an increase in expenditure or a decrease in revenue.



C. Principles Governing Budgetary Amendments



ARTICLE 163. (As amended on October 29, 2005)  The appropriations granted under the general and subsidiary budgets shall indicate the limit of expenditure allowed. No provisions shall be included in the budget to the effect that the limit of expenditure may be exceeded in pursuance of a decision of the Council of Ministers. The Council of Ministers shall not be empowered to amend the budget by a decree having the force of law. In draft amendments entailing an increase in appropriations under the budget for the current fiscal year and, in draft laws and law proposals providing for additional financial commitments in the budgets for the current or following year, the financial resources which would meet the stated expenditure shall be indicated.



D. Final Account



ARTICLE 164. Draft final accounts shall be submitted to the Turkish Grand National Assembly by the Council of Ministers within seven months of the end of the relevant fiscal year, unless a shorter period is prescribed by law. The Audit Court shall submit its notice of conformity to the Turkish Grand National Assembly within seventy-five days of the submission of the draft final accounts in question.



The draft final accounts shall be placed on the agenda of the Budget Committee together with the Draft Budget Act for the new fiscal year. The Budget Committee shall submit the draft Budget Act to the Plenary Assembly in conjunction with the draft final accounts; the Plenary Assembly shall consider, and decide on the draft final accounts in conjunction with the draft Budget Act for the new fiscal year.



The submission of the draft final accounts and the notice of conformity to the Turkish Grand National Assembly shall not preclude the auditing of accounts for the relevant year which have not already been dealt with by the Audit Court and shall not indicate that a final decision has been taken on these accounts.



E. Auditing of State Economic Enterprises


ARTICLE 165. The principles governing the auditing, by the Turkish Grand National Assembly of the accounts of public establishments and partnerships in which more than half of the capital directly or indirectly belongs to the state, shall be regulated by law.



CHAPTER TWO


ECONOMIC PROVISIONS



I. Planning


ARTICLE 166. The planning of economic, social and cultural development, in particular the speedy, balanced and harmonious development of industry and agriculture throughout the country, and the efficient use of national resources on the basis of detailed analysis and assessment and the establishment of the necessary organisation for this purpose are the duties of the state.



Measures to increase national efficiency and production, to ensure stability in prices and balance in foreign trade transactions, to promote investment and employment, shall be included in the plan; investments, public benefit and requirements shall be taken into account; the efficient use of resources shall be aimed at. Development activities shall be realised according to this plan.



The procedure and principles governing the preparation of development plans, their approval by the Turkish Grand National Assembly, their implementation and their revision, and the prevention of amendments liable to affect the unity of the plan shall be regulated by law.



II. Supervision of Markets and Regulation of Foreign Trade



ARTICLE 167. The state shall take measures to ensure and promote the sound, orderly functioning of the money, credit, capital, goods and services markets; and shall prevent the formation, in practice or by agreement, of monopolies and cartels in the markets.



In order to regulate foreign trade for the benefit of the economy of the country, the Council of Ministers may be empowered by law to introduce or lift additional financial impositions on imports, exports and other foreign transactions in addition to tax and similar impositions.



III. Exploration and Exploitation of Natural Resources



ARTICLE 168. Natural wealth and resources shall be placed under the control of, and put at the disposal of the state. The right to explore and exploit resources belongs to the state. The state may delegate this right to individuals or public corporations for specific periods. Of the natural wealth and resources, those to be explored and exploited by the state in partnership with individuals or public corporations, and those to be directly explored and exploited by individuals or public corporations shall be subject to the explicit permission of the law. The conditions to be observed in such cases by individuals and public corporations, the procedure and principles governing supervision and control by the state, and the sanctions to be applied shall be prescribed by law.



IV. Forests and the Inhabitants of Forest Villages


A. Protection and Development of Forests



ARTICLE 169. The state shall enact the necessary legislation and take the measures necessary for the protection of forests and the extension of their areas. Forest areas destroyed by fire shall be reafforested; other agricultural and stock-breeding activities shall not be allowed in such areas. All forests shall be under the care and supervision of the state.



The ownership of state forests shall not be transferred to others. state forests shall be managed and exploited by the state in accordance with the law. Ownership of these forests cannot be acquired through prescription, nor shall servitude other than that in the public interest be imposed in respect of such forests.



Acts and actions which might damage forests shall not be permitted. No political propaganda which might lead to the destruction of forests shall be made; no amnesties or pardons specifically granted for offences against forests shall be legislated. Offences committed with the intention of burning or destroying forests or reducing forest areas shall not be included within the scope of amnesties or pardons applicable on other occasions.



The limiting of forest boundaries shall be prohibited, except in respect of areas whose preservation as forests is considered technically and scientifically useless, but whose conversion into agricultural land has been found to be definitely advantageous, and in respect of fields, vineyards, orchards, olive groves or similar areas which technically and scientifically ceased to be forest before 31 December 1981 and whose use for agricultural or stock-breeding purposes has been found advantageous, and in respect of built-up areas in the vicinity of cities, towns or villages.



B. Protection of the Inhabitants of Forest Villages


ARTICLE 170. Measures shall be introduced by law to secure co-operation between the state and the inhabitants of villages located in or near forests in the supervision and exploitation of forests for the purpose of ensuring their conservation and improving the living conditions of their inhabitants; the law shall also regulate the development of areas which technically and scientifically ceased to be forests before 31 December 1981, the identification of areas whose preservation as forest is considered technically and scientifically useless, their exclusion from forest boundaries, their improvement by the state for the purpose of settling all or some of the inhabitants of forest villages in them, and their allocation to these villages.



The state shall take measures to facilitate the acquisition, by these inhabitants, of farming equipment and other inputs.



The land owned by villagers resettled outside a forest shall immediately be reafforested as a state forest.



V. Promotion of Cooperatives


ARTICLE 171. (As amended on July 23, 1995)



The state shall take measures in keeping with national and economic interests, to promote the development of cooperatives, which shall be primarily designed to increase production and protect consumers.



VI. Protection of Consumers, Small Traders and Craftsmen



A. Protection of Consumers



ARTICLE 172. The state shall take measures to protect and inform consumers; shall encourage their initiatives to protect themselves.



B. Protection of Small Traders and Craftsmen



ARTICLE 173. The state shall take measures to protect and support small traders and craftsmen.



PART FIVE


MISCELLANEOUS PROVISIONS



I. Preservation of Reform Laws



ARTICLE 174. No provision of the Constitution shall be construed or interpreted as rendering unconstitutional the Reform Laws indicated below, which aim to raise Turkish society above the level of contemporary civilisation and to safeguard the secular character of the Republic, and which were in force on the date of the adoption by referendum of the Constitution of Turkey.



1. Act No. 430 of 3 March 1340 (1924) on the Unification of the Educational System;



2. Act No. 671 of 25 November 1341 (1925) on the Wearing of Hats;



3. Act No. 677 of 30 November 1341 (1925) on the Closure of Dervish Monasteries and Tombs, the Abolition of the Office of Keeper of Tombs and the Abolition and Prohibition of Certain Titles;



4. The principle of civil marriage according to which the marriage act shall be concluded in the presence of the competent official, adopted with the Turkish Civil Code No. 743 of 17 February 1926, and Article 110 of the Code;



5. Act No. 1288 of 20 May 1928 on the Adoption of International Numerals:



6. Act No. 1353 of 1 November 1928 on the Adoption and Application of the Turkish Alphabet;



7. Act No 2590 of 26 November 1934 on the Abolition of Titles and Appellations such as Efendi, Bey or Pasa;



8. Act No. 2596 of 3 December 1934 on the Prohibition of the Wearing of Certain Garments.



PART SIX


PROVISIONAL ARTICLES



PROVISIONAL ARTICLE 1. On the proclamation, under lawful procedure, of the adoption by referendum of the Constitution as the Constitution of the Republic of Turkey, the Chairman of the Council of National Security and Head of State at the time of the referendum, shall assume the title of President of the Republic and shall exercise the Constitutional functions and powers of the President of the Republic for a period of seven years. The oath taken as Head of State on 18 September 1980, shall remain valid. At the end of the period of seven years the election for the Presidency of the Republic shall be held in accordance with the provisions set forth in the Constitution.



The President of the Republic shall also hold the chairmanship of the Council of National Security formed on 12 December 1980, under Act No. 2356, until the convening of the Turkish Grand National Assembly and the formation of the Bureau of the Assembly following the first general elections.



If the Presidency of the Republic falls vacant for any reason before the Turkish Grand National Assembly convenes and assumes its functions at the end of the first general elections, the most senior member of the National Security Council shall act as President of the Republic and shall exercise all his constitutional functions and powers until the convening of the Turkish Grand National Assembly and its election of a new President of the Republic in accordance with the provisions of the Constitution.



PROVISIONAL ARTICLE 2. The Council of National Security formed on 12 December 1980 under Act No. 2356 shall continue to exercise its functions under Act No. 2324 on the Constitutional Order and Act No. 2485 on the Constituent Assembly until the convening of the Turkish Grand National Assembly and the formation of the Bureau of the Assembly following the first general elections held under the Political Parties Act and the Elections Act prepared in accordance with the Constitution.



After the adoption of the Constitution, Article 3 of Act No. 2356 relating to the procedure for winning a seat on the Council of National Security which falls vacant for any reason, shall cease to apply.



After the Turkish Grand National Assembly has convened and assumed its functions, the Council of National Security shall become the Presidential Council for a period of six years, and the members of the Council of National Security shall acquire the title of members of the Presidential Council. The oath they took on 18 September 1980, as members of the Council of National Security shall remain valid. Members of the Presidential Council shall enjoy the rights and immunities conferred by the Constitution on members of the Turkish Grand National Assembly. The legal existence of the Presidential Council shall terminate on the expiry of the period of six years.



The functions of the Presidential Council shall be as follows:



a. to examine laws adopted by the Turkish Grand National Assembly and submitted to the President of the Republic concerning: the fundamental rights and freedoms and duties, the principle of secularism, the preservation of the reforms of Atatürk, national security and public order set forth in the Constitution, the Turkish Radio and Television Corporation, international treaties, the sending of Armed Forces to foreign countries and the stationing of foreign forces in Turkey, emergency rule, martial law and the state of war, and other laws deemed necessary by the President of the Republic, within the first ten days of the period of fifteen days granted to the President of the Republic for his consideration;



b. on the request of the President of the Republic and within the period specified by him:



to consider and give an opinion on matters relating to the holding of new general elections, the exercise of emergency powers and the measures to be taken during a state of emergency, the management and supervision of the Turkish Radio and Television Corporation, the training of the youth and the conduct of religious affairs;



c. According to the request of the President of the Republic, to consider and investigate matters relating to internal or external security and such other matters as are deemed necessary, and to submit its findings to the President of the Republic.







PROVISIONAL ARTICLE 3. With the convening of the Turkish Grand National Assembly and the formation of the Bureau of the Assembly following the first general elections held in accordance with the Constitution:



a. Act No. 2324 of 27 October 1980 on the Constitutional Order;



b. Act No. 2356 of 12 December 1980 on the Council of National Security;



c. Act No. 2485 of 29 June 1981 on the Constituent Assembly, shall cease to have effect and the legal existence of the Council of National Security and the Consultative Assembly shall terminate.



PROVISIONAL ARTICLE 4. (Repealed on May 17, 1987)



PROVISIONAL ARTICLE 5. On the tenth day following proclamation by the Supreme Election Council of the results of the first general elections, the Turkish Grand National Assembly shall convene of its own accord at the premises of the Turkish Grand National Assembly in Ankara at 15.00 hours. The eldest deputy shall take the chair for this session. At this session the deputies shall take their oaths.



PROVISIONAL ARTICLE 6. Until the Turkish Grand National Assembly, formed in accordance with the Constitution, adopts the Rules of Procedure which shall govern its sessions and proceedings, those provisions of the Rules of Procedure of the National Assembly which were in force before 12 September, 1980, and which are not contrary to the Constitution shall apply.



PROVISIONAL ARTICLE 7. The present Council of Ministers shall continue in office until the convening of the Turkish Grand National Assembly and the formation of the new Council of Ministers following the first general elections.



PROVISIONAL ARTICLE 8. Legislation relating to the organisation, duties, powers and functioning of the new organs, institutions and agencies established under the Constitution and other legislation whose introduction or amendment is provided for in the Constitution, shall be enacted during the period of Constituent Assembly, starting from the date of the adoption of the Constitution; legislation which cannot be dealt with during this period shall be enacted within the year following the first session of the newly elected Turkish Grand National Assembly.



PROVISIONAL ARTICLE 9. Within a period of six years following the formation of the Bureau of the Turkish Grand National Assembly which is to convene after the first general elections, the President of the Republic may refer to the Turkish Grand National Assembly for further consideration of any Constitutional amendments adopted by the Assembly. In this case the re-submission of the Constitutional amendment draft in its unchanged form to the President of the Republic by the Turkish Grand National Assembly, is only possible with a three-fourths majority of the votes of the total number of members.



PROVISIONAL ARTICLE 10. Local elections shall be held within a year of the first session of the Turkish Grand National Assembly.



PROVISIONAL ARTICLE 11. Regular and substitute members of the Constitutional Court who were in office on the date of the adoption by referendum of the Constitution shall continue to hold office and exercise their functions. Those previously elected by the Constitutional Court to specific offices shall retain the status thus acquired.



No election shall be held to fill the vacant seats of the regular members of the Constitutional Court until the number of these members falls to eleven, nor shall an election be held to fill the vacant seats of substitute members until the total number of regular and substitute members falls to fifteen. Until the Constitutional Court adapts to the new system, the principles and order of precedence set forth in the Constitution shall be observed in the elections which are to be held because the number of regular members has fallen below eleven, or because the total number of regular and substitute members has fallen below fifteen.



Until the number of regular members of the Constitutional Court falls to eleven, the quorum prescribed by Act No. 44 of 22 April 1962, shall be observed in all cases and proceedings.



PROVISIONAL ARTICLE 12. Persons appointed by the Head of State as regular and substitute members of the Supreme Council of Judges and Public Prosecutors from among the members of the High Court of Appeals and the Council of State under Provisional Article 1 of Act No. 2461 of 13 May 1981, on the Supreme Council of Judges and Public Prosecutors; as chief public prosecutor and deputy chief public prosecutor in accordance with the Provisional Article appended to Act No. 1730 on the High Court of Appeals under Act No. 2483 of 25 June 1981; and as president, chief public prosecutor, deputy presidents and heads of division of the Council of State under Provisional Article 14, paragraph 2 of Act No. 2576 of 6 January 1982 on the Council of State shall continue to exercise their functions until the end of the term of office for which they were elected.



The Provisions of the Provisional Articles of Act No. 2576 of 6 January 1982, which concern the appointment of the presidents and members of Administrative Courts shall also remain in force.



PROVISIONAL ARTICLE 13. The elections of one regular and one substitute member to be elected to the Supreme Council of Judges and Public Prosecutors from among the members of the High Court of Appeals shall take place within twenty days of the entry into force of the Constitution.



Until the assumption of office by the elected members, the quorum for meetings of the Council shall be met with the participation of substitute members.







PROVISIONAL ARTICLE 14. The obligation of the labour unions to deposit their revenues in the state banks shall be fulfilled within two years of the entry into force of the Constitution, at the latest.



PROVISIONAL ARTICLE 15. No allegation of criminal, financial or legal responsibility shall be made, nor shall an application be filed with a court for this purpose in respect of any decisions or measures whatsoever taken by: the Council of National Security formed under Act No. 2356 which will have exercised legislative and executive power on behalf of the Turkish Nation from 12 September 1980 to the date of the formation of the Bureau of the Turkish Grand National Assembly which is to convene following the first general elections; the governments formed during the term of office of the Council, or the Consultative Assembly which has exercised its functions under Act No. 2485 on the Constituent Assembly.



The provisions of the above paragraphs shall also apply in respect of persons who have taken decisions and adopted or implemented measures as part of the implementation of such decisions and measures by the administration or by the competent organs, authorities and officials. (Repealed on October 3, 2001)





PROVISIONAL ARTICLE 16. Persons who fail to participate in the referendum on the Constitution without valid legal or actual reasons despite being entitled to vote and being included in the register of electors and the polling station register compiled for the referendum, shall neither participate nor stand for election in general elections, by-elections, local elections or referendums for a period of five years following the referendum on the Constitution.









PART SEVEN


FINAL PROVISIONS



I. Amendment of the Constitution, Participation in Elections and Referenda



ARTICLE 175. (As amended on May 17, 1987)



The constitutional amendment shall be proposed in writing by at least one-third of the total number of members of the Turkish Grand National Assembly. Proposals to amend the Constitution shall be debated twice in the Plenary Session. The adoption of a proposal for an amendment shall require a three-fifths majority of the total number of members of the Assembly by secret ballot.



The consideration and adopting of proposals for the amendment of the Constitution shall be subject to the provisions governing the consideration and adoption of legislation, with the exception of the conditions set forth in this article.



The President of the Republic may refer the laws related to the Constitutional amendments for further consideration. If the Assembly adopts the draft law referred by the President by a two-thirds majority, the President may submit the law to referendum.



If a law is adopted by a three-fifths or less than two-thirds majority of the total number of votes of the Assembly and is not referred by the President for further consideration, it shall be published in the Official Gazette and shall be submitted to referendum.



A law on the Constitutional amendment adopted by a two- thirds majority of the total number of members of the Turkish Grand National Assembly directly or if referred back by the President for further consideration, or its articles as considered necessary may be submitted to a referendum by the President. Laws or related articles of the Constitutional amendment not submitted to referendum shall be published in the Official Gazette.



Laws related to Constitutional amendment which are submitted to referendum, shall require the approval of more than half of the valid votes cast.



The Turkish Grand National Assembly, in adopting the laws related to the Constitutional amendment, shall also decide on which provisions shall be submitted to referendum together and which shall be submitted individually.



Every measure including fines shall be taken to secure participation in referenda, general elections, by-elections and local elections.



II. Preamble and Headings of Articles


ARTICLE 176. The Preamble, which states the basic views and principles underlying the Constitution, shall form an integral part of the Constitution.



The headings of articles merely indicate the subject matter of the articles, their order, and the connections between them. These headings shall not be regarded as a part of the text of the Constitution.



III. Entry into Force of the Constitution



ARTICLE 177. On its adoption by referendum and its publication in the Official Gazette, this Constitution shall become the Constitution of the Republic of Turkey and shall come into force in its entirety, subject to the following exceptions and the provisions relating to their entry into force:



a. The provisions of Part II, Chapter II relating to personal liberty, to security, the press, publication and the media, and the right to freedom of assembly.



The provisions of Chapter III, relating to labour, collective agreements, the right to strike, and lockout.



These provisions shall come into force when the relevant legislation is promulgated, or when the existing legislation is amended, and at the latest, when the Turkish Grand National Assembly assumes its functions. However until their entry into force, existing legislation and the decrees and decisions of the Council of National Security shall apply.



b. The provisions of Part II relating to political parties and the right to engage in political activities, shall come into force on the promulgation of the new Political Parties Act, which is to be prepared in accordance with these provisions.



The right to vote and stand for election shall come into force on the promulgation of the Elections Act, also to be prepared in accordance with these provisions.



c. The provisions of part III, relating to legislative power:



These provisions shall come into force on the proclamation of the results of the first general elections. However, the provisions relating to the functions and powers of the Turkish Grand National Assembly which take place in this section shall be exercised by the Council of National Security until the Turkish Grand National Assembly assumes its functions, the provisions of Act No. 2485 of 29 June 1981 on the Constituent Assembly being reserved.



d. The provisions of Part III relating to the functions and powers of the President of the Republic and to the State Supervisory Council under the heading "President of the Republic"; to regulations, National Defence, procedures governing emergency rule under the heading "Council of Ministers"; to all other provisions under the heading "Administration", except local administration, and except the Atatürk High Institution of Culture, Language and History; and all the provisions relating to the judiciary, except the Courts of the Security of the State, shall come into force on publication in the Official Gazette of the adoption by referendum of the Constitution. The provisions which belong to the President and the Council of Ministers and which do not go into effect shall come into force when the Parliament begins its new term. The provisions relating to local administrations and to the Courts for State Security shall come into force on the promulgation of the relevant legislation.



e. If new legislation, or amendments to existing legislation are required in connection with the constitutional provisions which are to come into force on the proclamation of the adoption by referendum of the Constitution or in connection with existing or future institutions, organisations and agencies, the procedure to be followed shall be subject to those provisions of existing laws which are not unconstitutional, or to the provisions of the Constitution, in accordance with Article 11 of the Constitution.



f. The second paragraph of Article 164 regulating the procedure for the consideration of draft final accounts shall come into force in 1984.



PROVISIONAL ARTICLES NOT INCLUDED IN THE CONSTITUTION OF THE REPUBLIC OF TURKEY



Provisional article of Law No. 4709 dated October 3, 2001



PROVISIONAL ARTICLE: A) The sentence added to Article 67 of the Constitution as the last paragraph of Article 24 of this Law shall not be implemented during the first general elections to be held following the enactment of this Law.



B) The amendment made to Article 87 of the Constitution through Article 28 of this Law shall not be implemented for those who committed activities covered under Article 14 of the Constitution prior to the enactment of this Law.



Provisional article of Law No. 4777 dated December 27, 2002



PROVISIONAL ARTICLE 1. The last paragraph of Article 67 of the Constitution of the Republic of Turkey shall not be implemented in the first by-elections to be held during the 22nd Term of the Turkish Grand National Assembly.





(After being drafted by the Consultative Assembly, the Constitution of the Republic of Turkey was accepted by 92% of the Turkish public in a referendum on  November 7, 1982, and published in Official Gazette no. 17863, dated  November 9, 1982.)


#116
BANK CARDS AND CREDITS CARDS LAW*


Law No.      : 5464                 
Date of Enactment   : 23.2.2006
Official Gazette   : March 1, 2006 and no. 26095


Purpose
Article 1: The purpose of this Law is to ensure efficient and effective functioning of the card payments system by setting down the principles and procedures applicable to the issuance, use, clearing and settlement of bank cards and credit cards.

Scope
Article 2: Organizations and entities which establish a card system, issue cards and enter into merchant agreements, as well as merchants and card holders are subject to and governed by the provisions of this Law.

The persons or entities which issue cards or establish a system for forward sales of goods or services and for tracing of accounts payable and accounts receivable solely within their own workplace, or the persons or entities which issue cards up to a certain predetermined amount or level without any crediting transaction or without being subject to any account, will be excluded from the provisions of this Law.

Definitions
Article 3: For the purposes of this Law:

(a)   "Board" refers to the Banking Regulation and Supervision Board;

(b)   "Agency" refers to the Banking Regulation and Supervision Agency;

(c)   "Bank" refers to deposit banks and participation banks and development and investment banks;

(d)   "Bank card" refers to a card enabling its holder to have access to the banking services, including use of deposit accounts or special current accounts;

(e)   "Credit card" refers to a printed card or only a card number without any physical existence which enables its holder to purchase goods or services without using cash or to withdraw cash funds;

(f)   "Card system organization" refers to an organization which establishes a bank card or credit card system and grants authorization to issue cards or enter into merchant agreements according to the said system;

(g)   "Card issuing organization" refers to banks and other organizations authorized to issue bank cards or credit cards;

(h)   "Organizations entering into merchant agreements" refers to the banks or institutions which enter into agreements with merchants so as to ensure acceptance of bank card or credit card by them;

(i)   "Merchant" refers to a person or entity who agrees and accepts to sell goods and services or to provide cash to the card holder within the framework of agreement signed with the organizations entering into merchant agreements;

(j)   "Card holder" refers to a person or entity who makes use of the bank card or credit card services;

(k)   "Expenditure document" refers to a document issued by the merchant with respect to the transactions effected by using a bank card or credit card, showing the debt of the card holder arising out of the transaction, and other required information, and signed by the card holder except for the cases where the identity of the card holder is determined by a code number, a cipher or any other identification method;

(l)   "Cash payment document" refers to a document issued by banks or authorized merchants for cash payments to the bank card or credit card holder, and signed by the card holder except for the cases where the identity of the card holder is determined by a code number, a cipher or any other identification method;

(m)   "Last payment date" refers to the last day up to when the card holder is expected to pay his debts of the period or the minimum amount required to be paid by him so as not to fall in default;

(n)   "Debts of the period" refers to the total sum of the balance of payables and receivables recorded until the account cutoff date and of the balance of the previous account statement;

(o)   "Minimum amount" refers to the minimum amount of the debts of the period required to be paid;

(p)   "Crediting document" refers to a document issued by the merchant for the amount to be credited to the account of the card holder in the case of return of the goods or rescission of the services purchased by using a bank card or credit card, or in the case of cancellation of the underlying transaction;

(r)   "Notices, requests, complaints and objections" refers to the notices, requests, complaints and objections to be sent by the card holder in writing, in electronic medium or by phone.

SECOND PART
Transactions Subject to Licensing

Operating License
Article 4: The organizations intending to establish a card system, issue cards, enter into agreements with merchants, exchange information, and engage in clearing and settlement activities are required to obtain a license from the Board.

These organizations are subject to the following conditions of eligibility:

(a) They are required to be founded in the form of a joint-stock company;

(b) Their founders are required to have adequate financial standing and reputation, and honesty, integrity and skills necessitated for the business, and other qualifications generally sought for the bank partners;

(c) Their share certificates are fully required to be issued against cash payment and to be written to name, and identity of natural persons holding management and control of their legal entity founders is required to be documented;

(d) Their capital fully paid in cash and free from any simulation must not be less than six million New Turkish Liras;

(e) Their articles of association must be prepared in strict compliance with the provisions of this Law;

(f) They are required to have adequate management, personnel and technical equipments for the transactions and operations under this Law, and to have formed organization units for complaints and objections hereunder;

(g) They are required to submit a document evidencing the deposit in the Agency's account of a system entrance fee equal to five percent of the capital referred to in sub-paragraph (d) above.

The organizations are under obligation to ensure compliance of their activities and operations under this Law with the corporate governance principles.

The card system organizations headquartered abroad may open branch offices or representation offices in Turkey with a prior consent of the Board, providing that such offices do not establish a credit card system, do not issue cards and do not enter into merchant agreements.

The procedures and principles for implementation of this Article will be set down in a regulation to be issued by the Agency.

Cancellation of Operating License

Article 5: In the event that an organization licensed for establishing a card system, issuing cards, entering into agreements with merchants, exchanging information, and clearing and settlement activities hereunder subsequently loses its qualifications enumerated in Article 4 hereof, or it is later determined that the license has been obtained in reliance upon untrue and misleading statements, or the licensed organization fails to start its activities within a period of six months after receipt of license, or the licensed organization fails to carry on its activities for a continuous period of six months in a year, then and in this case, the Board may cancel and withdraw the operating license of that organization relating to the transactions under this Law.

The decisions for granting an operating license and the reasoned decisions for cancellation of an operating license will be published in the Official Gazette.

Articles of Association, Acquisition And Transfer Of Shares
Article 6: Provisions and principles applicable on articles of association and amendments to articles of association of, and acquisition and transfer of shares in, and indirect shareholding in, the organizations licensed for establishing a card system, issuing cards, entering into agreements with merchants, exchanging information, and clearing and settlement activities hereunder will be determined by the Board.


Evaluation of Applications for License
Article 7: The applications for license to be filed to the Agency pursuant to the provisions of this Law will be declined and refused by the Board in case of existence of any direct or indirect relationship that may prevent or hinder efficient and effective performance of supervision and audit, or if the conditions, qualifications and skills sought for the subject licensed operations cannot be met or are not available as of the time of application or in the course of evaluation thereof or are lost later. The refusal decisions will be notified to the relevant persons together with the reasons and grounds thereof.

THIRD PART
Obligations of Card Issuing Organizations

Issuance of Cards and Associated Obligations
Article 8: Card issuing organizations may in no case and for no reason issue a card to the name of a person who does not file a request or sign a credit card agreement. The sites where credit card requests may be collected by card issuing organizations, other than their head offices or branches, will be determined jointly by the Turkish Association of Banks and the Turkish Association of Participation Banks in due consultation with the Agency.

In the case of failure in payment of the minimum amount within three months following the last payment date, and failure in payment of the said amount within one month after receipt of a notice by the card holder from the card issuing organization, or in the case of infliction of judicial penalties and sentences in respect of use of bank cards and credit cards, the relevant card issuing organization will cancel all credit cards given to that card holder, and may not issue and give new credit cards until full repayment and settlement of the outstanding debts.

Card issuing organizations are under obligation to establish and keep continuously open and operational a system for taking the required actions and measures for ensuring proper and safe use of cards and relating to the notices, requests, complaints and objections.

Card issuing organizations are obliged to supply adequate information to the card holder at the time of issuing a card, and if demanded, to submit the records of the effected transactions within a reasonable period of time appropriate for the nature of such transactions, up to a maximum period of thirty days. This period will be sixty days for the transactions effected abroad.

If the cards are usable only by using a code number, a cipher or any other identification method, the card issuing organizations are liable to take all actions and measures as required for keeping such information in strict confidence, and to prevent printing of the card number on the customer copy of the expenditure and crediting documents and on the correspondences relating thereto.

Card issuing organizations are obliged to take actions for delivery of bank cards and credit cards only to the principal card holder, and to ensure that bank cards and credit cards issued to the name of minor holders of the supplementary cards are also delivered personally to the principal card holder.

Credit Card Limits
Article 9: Card issuing organizations are under obligation to determine and apply a limit of use of cards as a result of an assessment to be carried on by them by taking into consideration the prohibitions inflicted on or the legal incompetence of, the economic and social status of, and the monthly or yearly average income of the persons who apply for a credit card, as well as the existing credit card limits previously allocated to these persons by the other card issuing organizations, and the results of a modeling or scoring system, and the "know-your-customer" principles, and the information to be provided pursuant to Article 29 hereof. Card issuing organizations may update the current card limits in accordance with these provisions. However, card issuing organizations may not increase card limits unless otherwise demanded by the card holder. If and to the extent the expenditures made by a card holder exceed his card limit, the amount in excess may not be subject to any charge or interest other than the contractual interest for the period from the date of transaction to the date of actual payment.

The total limit of credit cards that may be granted by a card issuing organization to all credit cards of a natural person may not be in excess of twice of his average monthly net income for the first year, and in excess of four times thereof for the second year. For purposes of implementation of this paragraph, except for the card limits up to one thousand New Turkish Liras, the monthly or yearly average income level will be determined over the revenues declared by the card holder and confirmed by the relevant entities or institutions.

Upon demand of a card holder, a supplementary credit card may be issued in the name of and given to third persons, as a card linked to the principal card and up to the limit of the principal card.

The Board is authorized to determine the general and individual risk limits and ratios applicable to card issuing organizations, including the limitation referred to in second paragraph hereof.

Account Statement
Article 10: A credit card account statement shall be issued in writing and sent in printed form or in electronic medium or by other effective and efficient means of communication upon demand of the card holder, within the framework of the procedures and principles to be determined by the Board.

Complaints and Objections
Article 11: Card issuing organizations are liable to respond to all complaints and objections of card or supplementary card holders relating to use of cards, together with reasons and grounds thereof, with the card holders' application method, and within twenty days following the date of application for complaints and objections. The organizations are liable to take all actions and measures in order to ensure quick transmission of complaints and objections of card and supplementary card holders to their relevant units.

Transactions effected by using a credit card may be objected through an application to the card issuing organization within ten days following the last payment date. The credit card holder is obliged to clearly state in his application to which items in the account statement she or he objects, together with reasons and grounds thereof. An account statement to which no objection is raised by the end of this period of time will become final. However, finalization of account statement does not prejudice to the rights of action arising out of the general law provisions.

Unlawful Use of and Insurance Cover For Cards
Article 12: In the case of loss or theft of card or any of the information referred to in Article 16 hereof, the card holder will be held liable for the damages and losses caused by unlawful and unauthorized use of his card within twenty-four hours prior to a notice to be sent by him hereunder, subject to a limitation of one hundred and fifty New Turkish Liras. However, this limitation is not applicable in case of failure of the card holder in notification or in the event that the unlawful use of card is attributable to any gross negligence or malicious misconduct of the card holder.

The card issuing organization is under obligation to take out and maintain an insurance cover against liability of the card holder for the limit of one hundred and fifty New Turkish Liras as referred to the first paragraph hereof, upon demand of the card holder and subject to payment of the relevant insurance premiums and costs by the card holder. The procedures and principles with regard to insurance cover of cards and sharing of liability in connection therewith will be set down in a regulation to be issued by the Agency.

Provisions On Corporate Governance
Article 13: The principles and procedures relating to the management and organization structure, accounting and reporting system and corporate governance of organizations issuing cards, exchanging information, and dealing with the clearing and settlement activities will be determined by the Board.

Card issuing organizations will furnish to the Agency the rates of interest, delay interest, yearly fee and all kinds of commissions applied by them on credit cards, as well as all other information requested in relation therewith on monthly basis to be announced to the public. Contents of the information and documents to be published and the publishing procedures and principles will be determined by the Board.

Protective Provisions
Article 14: The Board is authorized to make the required legislative arrangements and to take all kinds of actions and measures by determining limitations and standard ratios, including but not limited to capital and liquidity adequacy ratios, with the intention of identification, analysis, monitoring, measurement and assessment of the relations and balances between assets, receivables, shareholders' equity, debts, liabilities and commitments of, and all other factors affecting the financial standing of, and all risks exposed to by, the organizations granted with an operating license pursuant to Article 4 of this Law.

The organizations granted with an operating license pursuant to Article 4 of this Law are liable to comply with the said legislative arrangements, and to calculate, reach to and maintain the limitations and standard ratios, and to take and implement all of the actions and measures requested by the Board within the periods of time specified with regard thereto.

FORTH PART
Obligations of Card Holders

Obligations Relating To Use of Cards
Article 15: Liability arising out of use of cards passes to the card holder as soon as the agreement is signed and the card passes to his possession or the card number with no physical existence is learned by him.

Signature box of the card must be signed by the card holder. If demanded by the merchant, the card holder is obliged to submit and show an identity document at the time of use of his card.

The card holder cannot be held liable for the damages and losses arising out of unlawful use of card in purchases of goods and services through various means of communication or through a purchase order form without an expenditure document pursuant to Article 20 of this Law.

Obligation of Notification
Article 16: The card holder is under obligation to keep safely both the card given to him, and if the use of card requires a code number, a cipher or any other identification method, all such information, and to take actions in order to avoid use of his card and such information by third parties, and to immediately report and notify to the card issuing organization the loss or theft of his card or any transaction executed beyond his will and knowledge, as soon as he becomes aware thereof.

The card holder is liable to inform the card issuing organization of any change in his notice address within fifteen days following the date of such change.

FIFTH PART
Obligations Relating to Merchants and
Organizations Entering Into Merchant Agreements

Control and Acceptance of Cards

Article 17: Merchants are obliged to accept the requests of card holders to pay the price of the purchased goods and services by using bank card or credit card. This obligation is valid also in discount selling periods. Merchants cannot charge a commission or any additional fee under any name whatsoever on the card holder due to the use of card. In the case of breach of this provision, the organizations entering into merchant agreements will terminate the merchant agreement and cannot enter into a new merchant agreement with that merchant within one year thereafter.
Merchants are under obligation to check the signature, in the transactions requiring a signature, of the persons who wish to pay the price of the purchased goods and services by using bank card or credit card, and to check the existence of any alteration on the card, and to determine and check the validity of card on the basis of the information given to them by organizations entering into merchant agreements with them, and if and when necessary, to request submission of a valid identity document in order to compare the data and information on the card with the data and information on the identity document, and to check and compare the data and information on the relevant expenditure document with the data and information on the credit card. Merchants will be held liable for all damages and losses arising out of their failure in such controls and comparisons.

Information and Safety of System
Article 18: Merchants are obliged to put and place the signs of acceptance of bank card and credit card at the entrance of their workplace and at other sites easily visible by the card holders, and to remove all such signs if and when their merchant agreement is terminated for whatever reason. Merchants are obliged to warn card holders if and when card transactions cannot be effected for a technical reason for a temporary period.

Merchants are liable to ensure safe operation of the systems to be established by them for enabling transactions through various means of communication or through a purchase order form without any expenditure document pursuant to Article 20 hereof.

Expenditure and Crediting Documents
Article 19: Upon payment of the price of the purchased goods and services by using bank card or credit card or upon a demand of cash, merchants are obliged to issue expenditure document or cash payment document by using electronic or mechanical devices, and to keep the original copies thereof for the period specified in their agreement, and to give a copy thereof to the card holder, without prejudice to the provisions of Article 20 hereof. In case of violation of these provisions, the price of the sold goods or services cannot be claimed by the merchant from the organization entering into merchant agreement with that merchant.

In the case of return of the goods or rescission of the services purchased by using a card, or in the case of cancellation of the underlying transaction, merchants are liable to issue a crediting document, and give a copy of it to the card holder, and keep another copy in their files.

Transactions Not Requiring A Signature
Article 20: Where it is not possible to issue expenditure or crediting documents due to nature of a transaction, the card may also be used by notification of the card number by the card holder via various means of communication or by using a code number, a cipher or another identification method usable as a substitute of signature.

Organizations Entering Into Merchant Agreements
Article 21: Organizations entering into merchant agreements are under obligation to create and employ an infrastructure which enables receipt of an approval from the relevant card issuing organization for acceptance of cards. Organizations entering into merchant agreements may determine a transaction limit for each of the merchants contracted by them.

Organizations entering into merchant agreements are liable to pay the amounts of transactions executed by card holders, to the merchants contracted by them, in accordance with the relevant provisions of the merchant agreement.

The Board is authorized to limit the types of transactions and the coverage of merchants to be contracted.

Transaction Limit
Article 22: In the event that a merchant is held liable to receive approval or authorization from the card issuing organization for acceptance of a card if and when the amount of expenditures intended to be paid by using a single credit card exceeds the predetermined transaction limit, then and in this case, the merchant is obliged to receive approval or authorization for the full amount of expenditures. More than one expenditure documents cannot be issued for the same payment transaction using the same card. In case of violation of this provision, the price of the sold goods or services cannot be claimed by the merchant from the organization entering into merchant agreement with that merchant.

Keeping of Information in Confidence
Article 23: Merchants are not allowed to disclose to any third person other than the legally authorized persons, entities and authorities, or to store and keep, or to copy or reproduce the information acquired by them about the card and the card holder as a result of use of cards, without a prior written consent of the card holder. Nor are merchants allowed to share the card information with any person or entity other than the organization being a party to their merchant agreements, or to sell, purchase or exchange such information. Organizations entering into merchant agreements are under obligation to monitor and check implementation of the provisions of this paragraph.

Card issuing organizations are also liable to keep in strict confidence all personal data and information acquired by them, and not to use such information for any purpose other than marketing of their own services, and to take actions and measures so as to prevent access of any third person or entity other than the legally authorized persons, entities and authorities to such information.


SIXTH PART
Form of Agreement, and
General Transaction Conditions

Conditions of Agreement
Article 24: Relations between card issuing organizations and card holders will be governed by a written agreement to be printed with minimum twelve type size and in dark black letters in accordance with this Law and other applicable laws and regulations. A copy of this agreement will be delivered to the card holder and if any, to his guarantor. Card issuing organizations are obliged to give detailed information to the card holder about the use of card and the provisions of the agreement.

Form and minimum contents of agreements to be signed by the card issuing organizations with the card holders will be determined by the Board.

Minimum amount specified in the agreement cannot be less than twenty percent of the debt of the period. If the minimum payment amount stated on the account statement is not paid on or before the last payment date, the card holder cannot be held liable to pay any interest over the unpaid amount of debt, other than the delay interest specified clearly in the agreement.

For the transactions executed by the card holder, no payment may be requested in any form or under any name whatsoever such as interest, commission or expense, unless clearly incorporated and specified in the agreement, and no money may be set off from the card holder's account in relation therewith. The agreement may not contain any clause which prejudices to the rights and interests of the card holder and provides unilateral, unfair and unjust benefits to the card issuing organization.

It will be stated in the agreement that the guarantor cannot be deemed to have fallen in default unless and until the unpaid debts of the card holder are duly notified to the guarantor. With regard to the increase of the limit of use of card or the amendments proposed in the agreement clauses resulting in an increase in the guarantor's liability, the liability of the guarantor arising out of such additional or amended clauses may start only if and after a written consent of the guarantor is taken in relation therewith. The security on the use of credit cards is governed by and subject to the provisions of the Code of Obligations pertaining to simple and ordinary security and surety. The guarantor may not be demanded to pay the guaranteed debts unless and until all remedies are used for collection of the debts from the principal debtor.

Amendments To Agreement

Article 25: All amendments proposed in the agreement will be notified to the card holder. Such amendments will become effective as of the last payment date of the period of notification. If the card is continued to be used after the last payment date of the period of notification, all such amendments in the agreement will be considered and treated to be accepted by the card holder. In case of an increase in the interest rate, such increase may become effective only upon a thirty-days' prior notice to the card holder. The card holder will not be affected by interest rate increase if he ceases to use his credit card and pays the full amount of his outstanding debts within no later than sixty days after receipt of the notice relating to the interest rate increase.

The card holder is entitled to terminate the agreement and to have his card cancelled upon demand.

Interest Calculation
Article 26: All kinds of clauses allowing the accrual of interest over the total amount of debts or the balance of account of an accounting period, starting from a date prior to the account cutoff date when the account statement of that period is issued, will be null and void. The date of transaction will be taken as the starting date of interest accrual over the debts arising out of withdrawal of cash. The transactions to be considered as withdrawal of cash will be determined by the Board.

In case of partial payment of the debts of a period, the interest will be calculated over the balance of account. The balance of account will be subject to contractual interest rate in case of payment equal to or above minimum amount, or to delay interest rate in case of payment below minimum amount. Compound interest cannot be applied on the debts arising out of card use, also including the event of default.

The Turkish Central Bank is authorized to determine maximum contractual and delay interest rates and will publish and declare the determined rates once every 3 months.

The period between the account cutoff date and the last payment date cannot be less than ten days.

For the participation banks, for the purposes of this Law, interest is applied and termed as profit share, while delay interest is applied and termed as delay penalty.

Provisions of sub-paragraph (f) of second paragraph of Article 10 of the Consumer Protection Law 4077 are not applicable on the credit cards.

SEVENTH PART
Supervision and Audit, and
Actions To Be Taken

Supervision and Audit

Article 27: The activities and operations carried on within the framework of the provisions of this Law by organizations granted with an operating license pursuant to Article 4 of this Law will be supervised and audited by the Agency. These organizations are first obliged to establish and employ internal control, risk management and internal audit systems and accounting and financial reporting units, and to keep all kinds of their records, information, documents, systems and structures, particularly their information and documents pertaining to their financial statements, fit and available and ready for audit hereunder at all times.

The persons and entities governed by this Law are liable to furnish to the Agency upon its demand all kinds of documents and information relating to the implementation of provisions of this Law, even if they are confidential, within the framework of the procedures and principles to be determined by the Board.

The procedures and principles relating to supervision and audit will be set down in a regulation to be issued by the Agency.

Actions To Be Taken
Article 28: The Board, with affirmative vote of at least five of its members, will be authorized to withdraw and cancel the operating license granted pursuant to Article 4 of this Law to an organization which fails to take all of the required actions and measures for remedying deficiencies and defects detected by the audits as referred to in Article 14 hereof.

EIGHTH PART
Cooperation Between Organizations and Entities

Information Exchange, Clearing and Settlement Activities
Article 29: Exchange of information and documents for the purpose of monitoring, assessment and control of risk exposures of the card holders and of customer services, and the clearing and settlement activities for the payables and receivables arising out of use of cards will be carried out between the card issuing organizations within the framework of written agreements to be signed by and between them or through companies to be promoted and founded by at least five card issuing organizations. The relevant natural and legal persons will have the right of access, against payment of a fee, to the systems to be established for exchange of information. The provisions of Article 44 of this Law will be applicable for resolution of disputes relating to use of this right of access or relating to the information and documents received so. The exchange of information and documents under this paragraph is excluded from the second paragraph of Article 31 hereof.

The companies promoted and founded pursuant to the first paragraph above are under obligation to provide all kinds of information and documents requested by the Agency in strict compliance with the determined procedures and principles relating thereto. The Agency is authorized to use all such information and documents in its supervision and audit system and in the legal proceedings with regard thereto.

The principles and procedures of activities of, and the conditions of membership in, and the supervision and audit of, these companies will be dealt with in a regulation to be issued by the Board in due consultation with the Turkish Central Bank. If deemed necessary by the Board, the powers relating to supervision and audit of these companies may be used and enforced by the Agency jointly with the Turkish Central Bank.

Cooperation Between Organizations And Public Entities
Article 30: On all matters relating to implementation and enforcement of this Law and the credit card policies, the Agency, the Ministry of Finance, the Ministry of Industry and Commerce, the Treasury Undersecretariat, the Competition Agency, the Turkish Central Bank and other public entities to be named by the Board will mutually exchange opinions or information.

The Agency and the Turkish Central Bank will share, subject to the confidentiality obligations, all of the information agreed upon between them and contained in their databases, for the purpose of performance of the duties enumerated in this Law.

The principles and procedures relating to the exchange of information and other forms of cooperation will be decided and determined by the Board in due consultation with the relevant parties.

NINTH PART
Legal Obligations

Confidentiality of Secrets
Article 31: The Board members and the Agency employees are not allowed to disclose to any person other than the legally authorized persons and entities, or to use for their own personal gains or benefits, any of the secret information relating to the organizations, card holders and guarantees covered by this Law that may come to their knowledge during performance of their duties hereunder.

Organizations which establish a card system, issue cards, or enter into merchant agreements, and organizations referred to in Article 29 and merchants and their respective partners or shareholders, directors and officers and other persons or employees acting on behalf of them are not allowed to disclose to any person other than the legally authorized persons and entities any of the secret information learned by them during performance of their duties or activities. This confidentiality obligation is applicable also on the suppliers giving support services to the card issuing organizations, and their employees.

Burden of Proof
Article 32: The burden of proof lies with the merchant in the disputes that may arise out of the purchases from the merchant executed by phone, in electronic medium, via a purchase order form or other means of communication and by notifying a card number.

In case of a dispute that may arise between the card issuing organization and the card holder, the burden of proof for proving that the transaction is accurately recorded, and posted to the account, and that no technical deficiency or failure occurred, lies with the card issuing organization.

All notifications by phone under this Law are required to be sent to the call centers where calls are recorded, or via the recording devices installed in the relevant sites. The voice records of the phone calls received by the call centers duly appointed and declared by the card issuing organizations will be stored and kept for one year after the date of notification. The disputed records are required to be kept until resolution of the dispute, without being subject to such limitation of time.

The copies of microfilms or microfiches or the documents containing information derived out of electronic or magnetic media will be accepted and treated as the documents referred to in first paragraph of Article 68 of the Execution and Bankruptcy Code 2004, without need for their originals, providing that such copies and documents confirm each other.

Care Liability
Article 33: Organizations which establish a card system, issue cards, or enter into merchant agreements, and merchants are liable to act prudently and show diligence and care in performance of all of their obligations arising out of this Law and the associated legislative arrangements.

Protection of Professional Activities
Article 34: Other than organizations which are authorized to establish a card system, issue cards, or enter into merchant agreements pursuant to this Law, no natural or legal person may, either as a principal or as an agent, establish a card system, issue cards or enter into merchant agreements, nor may a natural or legal person use in its name, title or any of its stationery, documents, advertisements or promotions any word or expression that may create the impression of engagement in such activities.

TENTH PART
Administrative and Judicial Penalties

Administrative Fines
Article 35: By a decision of the Board showing the reasons and grounds thereof as well, the following administrative fines will be imposed on the organizations governed by this Law:

(a)   a fine between two thousand New Turkish Liras and ten thousand New Turkish Liras in case of breach of provisions of first, second and third paragraphs of Article 8 of this Law;

(b)   a fine between two thousand New Turkish Liras and ten thousand New Turkish Liras in case of breach of provisions of first paragraph of Article 9 of this Law, and a fine up to one percent of the amount of breach, not being less than five thousand New Turkish Liras, in case of breach of provisions of second paragraph of the said Article;

(c)   a fine between two thousand New Turkish Liras and ten thousand New Turkish Liras in case of breach of provisions of Article 10 and first paragraph of Article 11 of this Law;

(d)   a fine between ten thousand New Turkish Liras and fifty thousand New Turkish Liras in case of breach of provisions of Article 14 of this Law;

(e)   a fine between two thousand New Turkish Liras and ten thousand New Turkish Liras in case of breach of provisions of second paragraph of Article 18 of this Law;

(f)   a fine between two thousand New Turkish Liras and ten thousand New Turkish Liras in case of breach of provisions of Articles 24 and 25 of this Law;

(g)   a fine between ten thousand New Turkish Liras and fifty thousand New Turkish Liras in case of breach of provisions of first paragraph of Article 27 of this Law;

(h)   a fine between two thousand New Turkish Liras and ten thousand New Turkish Liras or up to one percent of the amount of breach in case of breach of provisions of the decisions taken, or regulations and communiqués issued, or other legislative arrangements made by the Board according to the relevant articles of and in reliance upon this Law.

The fines referred to in this Law will be increased at the beginning of every year in accordance with the pertinent provisions of the Misdemeanors Law 5326.

False Documents

Article 36: A person who provides gains or benefits for himself or to other persons by issuing false or untrue expenditure documents, cash payment documents or crediting documents or by making alterations in such documents in any manner whatsoever will be sentenced to imprisonment for a period of two to five years and an administrative fine equivalent to a period up to five thousand days.

Untrue and Misleading Statements, and Fraud in Agreement and Its Exhibits

Article 37: A card holder who uses personally or causes others use his card by making untrue and misleading statements of loss or theft of his bank card or credit card, and a person who knowingly uses such card will be sentenced to imprisonment for a period of one to three years and an administrative fine equivalent to a period up to two thousand days.

A person who commits a fraud in the credit card or merchant agreement or its exhibits or who submit false documents so as to obtain an agreement will be sentenced to imprisonment for a period of one to three years.

Unauthorized Issuance of Cards
Article 38: The natural persons or the officers of the legal entities who establish a card system, issue credit cards or enter into merchant agreements without an authorization or license as specified in Article 4 of this Law or who use in their name, title, or any stationery, documents, promotions or advertisements or other public disclosures any word or expression that may give the impression of engagement in such activities will be sentenced to imprisonment for a period of one to three years and an administrative fine equivalent to a period up to one thousand days.

In case of breach of the first paragraph, if claimed so by the Agency from the competent Public Prosecutor's Office, the competent peace court judge, or in the case of a legal action, the competent trial court will temporarily stop and suspend the activities and advertisements and recall the promotional items of the relevant person or entity. Such injunctions will remain in force until removed by a court judgment. All such judgments and decisions are open to appeal.

Breach of Confidentiality Obligations
Article 39: The officers in charge of the activities of any card issuing organization, merchant or organization entering into merchant agreements which knowingly and maliciously breach the provisions of fifth paragraph of Article 8 and Article 23 of this Law, and the transacting persons will be sentenced to imprisonment for a period of one to three years and an administrative fine equivalent to a period up to one thousand days.

The officers in charge of the activities of and the relevant members or employees of card issuing organization, merchant or organization entering into merchant agreements which causes disclosure of the code number, card number, cipher or any other identification method, needed for use of cards, but required to be kept in strict confidence, as a result of any careless or negligent act or incompetence or disability in profession or breach of orders and rules will be sentenced to an administrative fine equivalent to a period up to one thousand days.

A person who breaches the provisions of Article 31 of this Law will be sentenced to imprisonment for a period of one to three years and an administrative fine equivalent to a period up to one thousand days.

Criminal Liability of Merchants

Article 40: The officers in charge of the activities of and the relevant members or employees of a merchant which breaches the provisions of first paragraph of Article 17, or the obligation to remove the signs of bank card and credit card transactions as specified in Article 18, or provisions of second paragraph of Article 19 of this Law will be sentenced to an administrative fine equivalent to a period up to one thousand days.

Failure To Give The Requested Information and Documents In Audit

Article 41: A person who refuses to give the requested information and documents pursuant to second paragraph of Article 27 of this Law or who gives untrue and misleading information and documents will be sentenced to imprisonment for a period of three months to one year and an administrative fine equivalent to a period up to one thousand and five hundred days.

Prosecution Procedures

Article 42: Any investigation or prosecution relating to the offences and crimes referred to in Articles 38, 39 and 41 of this Law will be subject to a written application of the Agency to the competent Public Prosecutor's Office. This application is a pre-condition of lawsuits hereunder. In the public actions brought forward as a result of investigation under this paragraph, the Agency will upon application become a joining party to the case as of the application time.

If, as a result of an investigation commenced in accordance with the provisions of the first paragraph, the competent Public Prosecutor's Office decides not to initiate a legal prosecution, such decision will be notified to the Agency. The Agency will, against such decisions, have a right of appeal pursuant to the Criminal Proceedings Law 5271. In case of a public action, a copy of the indictment will be notified also to the Agency.

The relevant persons retain their right to apply to the competent Public Prosecutor's Office for prosecution of any crime or offence referred to in Article 39 of this Law.

ELEVENTH PART
Other Provisions

Corporate Credit Cards

Article 43: The provisions of second paragraph of Article 8, and Articles 9, 12, 24, 25, 26 and 44 of this Law will not be applicable to the corporate credit cards issued and given to the merchants.

Competent Courts and Authorities

Article 44: In the disputes arising out of enforcement of this Law, if the card holder is a consumer, the provisions of Articles 22 and 23 of the Consumer Protection Law 4077 will be applicable.

In the lawsuits commenced by the card issuing organizations against the card holders, the provisions of the Civil Law Procedures Code 1086 pertaining to jurisdiction in venue and jurisdiction in subject matter will be applicable.

Notifications
Article 45: All notices required to be sent to the card holder and his guarantors pursuant to this Law will, without prejudice to the provisions of the Notification Law 7201, be sent to the address given in the agreement or on the application form, or if the card holder has notified a change in his address, to his last known address.

Contributory Payments
Article 46: Except for banks, the organizations granted with an operating license pursuant to Article 4 of this Law will be liable to pay to the Agency a contribution at a rate to be determined by the Board, not exceeding three per ten thousands of their balance sheet total of the previous year-end.

The contributions unpaid by the end of the specified period will be collected according to the provisions of the Law on Methods of Collection of Public Receivables 6183.

The contributions paid by these organizations to the Agency will be considered as an expense in calculation of the corporate tax base.

Monetary Amounts
Article 47: Except for the provisions pertaining to fines, each of the monetary amounts and limits mentioned in this Law may every year be increased by a Board decision up to the rate of increase in the producer prices index declared and published by the Turkish Statistics Agency for that year.

Regulations
Article 48: The regulations required to be enacted and issued pursuant to this Law will be enacted and put into effect by the Agency within one year.

Provisional Article 1: All organizations governed by the provisions of this Law are obliged to adapt themselves to the provisions of this Law within one year.

Provisional Article 2: Except for banks, the organizations engaged in the activities and operations referred to in Article 4 hereof as of the effective date of this Law are under obligation to apply to and obtain the required licenses from the Agency within three months following the date of promulgation of the regulation stipulated in the said Article.

Provisional Article 3: Card issuing organizations governed by this Law are under obligation to harmonize their interest calculation practices to the provisions of this Law within three months, and their other practices and applications within one year.

Provided, however, that the minimum amount referred to in third paragraph of Article 24 hereof will be applied as ten percent for a period of six months following the effective date of this Law.

Provisional Article 4: The credit card debtors who have received a payment notice for their end-of-period debts or against whom an execution proceeding has been started as of the effective date of this Law or who have fallen in default by 31/01/2006 will, if they make a written application to the relevant credit card issuing organization or to its lawyers within sixty days hereafter, by giving their current notice address and by stating that they wish to repay their outstanding debts in installments, have the right to repay  in eighteen equal installments, the total amount of debts to be calculated over an interest rate of 18% per annum until collection and recovery of full amount of outstanding debts of the last period notified to them, together with the court and execution proceedings costs and fees and attorney fees, if the debts have already become the subject of execution proceedings, providing that they sign a repayment schedule to be issued and they pay the first installment thereof in advance.

The principal amount of debts as of the date of default is the total amount of debts shown in the account statement of the last period sent by the card issuing organization to the card holder at that date.

Providing that the credit card debtor applies to the creditor and pays the installments in accordance with the repayment schedule pursuant to the first paragraph of this Article, the execution proceedings will be suspended and the periods set forth in the Execution and Bankruptcy Code will not continue, without prejudice to the already completed steps in the execution proceedings.

The credit card debtor may raise an objection against the said repayment schedule, only subject to the condition of making his debt repayments in accordance with the schedule and continuing the repayments.

For the debts rescheduled pursuant to this Provisional Article, all objections raised by the debtor against the debt at any time prior to the rescheduling will be removed. The pending execution proceeding will terminate upon payment of the last installment on due date thereof in compliance with the repayment schedule.

In case of non-payment of any one of the installments on due date thereof, all rights and interests granted by this Article will be forfeited, and the pending execution proceedings will be resumed over the default interest rate referred to in Article 26 of this Law.

This Provisional Article does not entitle any debtor to claim refund of the debt payments effected prior to the effective date of this Law.

Effective Date
Article 49: This Law becomes effective as of the date of its publication.

Enforcement
Article 50: The provisions of this Law shall be enforced by the Council of Ministers.
#117
THE ACT ON THE PROTECTION OF COMPETITION


Act No   : 4054
Date of Adoption   : 7/12/1994
Official Gazette of Its Publication Date   : 13/12/1994
Number   : 22140
Code of Its Publication Series   : 5
Volume   : 34
Page   :

SECTION I

Purpose, Scope, Definitions

Article 1- The purpose of this Act is to prevent agreements, decisions and practices preventing, distorting or restricting competition in markets for goods and services, and the abuse of dominance by the undertakings dominant in the market, and to ensure the protection of competition by performing the necessary regulations and supervisions to this end.
Scope
Article 2- Agreements, decisions and practices which prevent, distort or restrict competition between any undertakings operating in or affecting markets for goods and services within the boundaries of the Republic of Turkey, and the abuse of dominance by the undertakings dominant in the market, and any kind of legal transactions and behaviour having the nature of mergers and acquisitions which shall decrease competition to a significant extent, and transactions related to the measures, establishments, regulations and supervisions aimed at the protection of competition fall under this Act.
Definitions
Article 3- In implementation of this Act, the terms express the following:
Ministry: The Ministry of Industry and Trade,
Competition: The contest between undertakings in markets for goods and services, which enables them to take economic decisions freely,
Dominant Position: The power of one or more undertakings in a particular market to determine economic parameters such as price, supply, the amount of production and distribution, by acting independently of their competitors and customers,
Undertaking: Natural and legal persons who produce, market and sell goods or services in the market, and units which can decide independently and do constitute an economic whole,
Association of Undertakings: Any kind of associations with or without a legal personality, which are formed by undertakings to accomplish particular goals,
Goods: Any kind of movable or immovable property which is the subject of trade,
Services: Physical, intellectual or combined activities carried out in return for a cost or interest,
Authority: Competition Authority,
Board: Competition Board.
SECTION II

CHAPTER ONE
Prohibited Activities

Agreements, Concerted Practices and Decisions Limiting Competition

Article 4- Agreements and concerted practices between undertakings, and decisions and practices of associations of undertakings which have as their object or effect or likely effect the prevention, distortion or restriction of competition directly or indirectly in a particular market for goods or services are illegal and prohibited.
Such cases are, in particular, as follows:

a)   Fixing the purchase or sale price of goods or services, elements such as cost and profit which form the price, and any terms of purchase or sale,
b)   Partitioning markets for goods or services, and sharing or controlling all kinds of market resources or elements,
c)   Controlling the amount of supply or demand in relation to goods or services, or determining them outside the market,
d)   Complicating and restricting the activities of competing undertakings, or excluding firms operating in the market by boycotts or other behaviour, or preventing potential new entrants to the market,
e)   Except exclusive dealing, applying different terms to persons with equal status for equal rights, obligations and acts,
f)   Contrary to the nature of the agreement or commercial usages, obliging to purchase other goods or services together with a good or service, or tying a good or service demanded by purchasers acting as intermediary undertakings to the condition of displaying another good or service by the purchaser, or putting forward terms as to the resupply of a good or service supplied.   

In cases where the existence of an agreement cannot be proved, that the price changes in the market, or the balance of demand and supply, or the operational areas of undertakings are similar to those markets where competition is prevented, distorted or restricted, constitutes a presumption that the undertakings are engaged in concerted practice.

Each of the parties may relieve itself of the responsibility by proving not to engage in concerted practice, provided that it is based on economic and rational facts.

Exemption

Article 5- The Board, in case all the terms listed below exist, may decide (Annulled: 02.07.2005-Article 5388/1)  (...) to exempt agreements, concerted practices between undertakings, and decisions of associations of undertakings from the application of the provisions of article 4:

a)   Ensuring new developments and improvements, or economic or technical development in the production or distribution of goods and in the provision of services,
b)   Benefitting the consumer from the above-mentioned,
c)   Not eliminating competition in a significant part of the relevant market,
d)   Not limiting competition more than what is compulsory for achieving the goals set out in sub-paragraphs (a) and (b).

(Amended: 02.07.2005-Article 5388/1)  Exemption may be granted for a definite period, just as the granting of exemption may be subjected to the fulfillment of particular terms and/or particular obligations. Exemption decisions are valid as of the date of concluding an agreement or committing a concerted practice or taking a decision of an association of undertakings, or fulfilling a condition if it has been tied to a condition.

In case the terms mentioned in the first paragraph are fulfilled, the Board may issue communiqués which ensure block exemptions for the types of agreements in specific subject-matters and which indicate their terms.   

Abuse of Dominant Position

Article 6- The abuse, by one or more undertakings, of their dominant position in a market for goods or services within the whole or a part of the country on their own or through agreements with others or through concerted practices, is illegal and prohibited.

Abusive cases are, in particular, as follows:

a)   Preventing, directly or indirectly, another undertaking from entering into the area of commercial activity, or actions aimed at complicating the activities of competitors in the market,
b)   Making direct or indirect discrimination by offering different terms to  purchasers with equal status for the same and equal rights, obligations and acts,
c)   Purchasing another good or service together with a good or service, or tying a good or service demanded by purchasers acting as intermediary undertakings to the condition of displaying another good or service by the purchaser, or imposing limitations with regard to the terms of purchase and sale in case of resale, such as  not selling a purchased good below a particular price,   
d)   Actions which aim at distorting competitive conditions in another market for goods or services by means of exploiting financial, technological and commercial advantages created by dominance in a particular market,
e)   Restricting production, marketing or technical development to the prejudice of consumers.

Mergers or Acquisitions

Article 7- Merger of two or more undertakings, aimed at creating a dominant position or strengthening their dominant position, as a result of which, competition is significantly decreased in any market for goods or services within the whole or a part of the country, or acquisition, except acquisition by way of inheritance, by any undertaking or person, of another undertaking, either by acquisition of its assets or all or a part of its partnership shares, or of other means which confer it/him the power to hold a managerial right, is illegal and prohibited.

The Board shall declare, via communiqués to be issued by it, the types of mergers and acquisitions which have to be notified to the Board and for which permission has to be obtained, in order them to become legally valid. 


CHAPTER TWO
Powers of the Board

Negative Clearance

Article 8- Upon the application by the undertaking or associations of undertakings concerned, the Board may, on the basis of information in hand, grant a negative clearance certificate indicating that an agreement, decision, practice or merger and acquisition are not contrary to articles 4, 6 and 7 of this Act.

The Board may, after issuing such a certificate, revoke its opinion at any time, under the conditions set out in article 13. However, in this case, criminal sanction is not applied to the parties for the period until the change of opinion by the Board.

Termination of Infringement

Article 9- If the Board, upon informing, complaint or the request of the Ministry or on its own initiative, establishes that articles 4, 6 and 7 of this Act are infringed, it notifies the undertaking or associations of undertakings concerned of the decision encompassing those behaviour to be fulfilled or avoided so as to establish competition and maintain the situation before infringement, in accordance with the provisions mentioned in section Four of this Act.

Natural and legal persons who have a legitimate interest are entitled to file a complaint.

The Board, prior to taking a decision pursuant to the first paragraph, shall inform in writing the undertaking or associations of undertakings concerned of its opinions concerning how to terminate the infringement.

Where the occurrence of serious and irreparable damages is likely until the final decision, the Board may take interim measures which have a nature of maintaining the situation before the infringement and which shall not exceed the scope of the final decision.

(...)  Notification of Mergers and Acquisitions to the Board

Article 10- (Annulled paragraph one: 02.07.2005-5388/Article 2)

As of the date the Board is notified of merger or acquisition agreements falling under article 7, the Board is, as a result of the preliminary examination to be performed by it within fifteen days, obliged to permit the merger or acquisition transaction, or if it decides to deal with this transaction under final examination, it is obliged to duly notify, with its preliminary objection letter, those concerned of the fact that the merger or acquisition transaction is suspended and cannot be put into practice until the final decision, together with other measures deemed necessary by it. In this case, the provisions of articles 40-59 of this Act shall be applicable.

Where the Board does not respond to or take any action for the application as to a merger or acquisition within due time, merger or acquisition agreements shall take effect and become legally valid after 30 days as of the date of the notification.

Failure to Notify Mergers and Acquisitions to the Board

Article 11- Where a merger and acquisition transaction whose notification to the Board is compulsory is not notified to the Board, the Board shall deal with the merger or acquisition under examination on its own initiative, when it is informed about the transaction anyway. As a result of the examination;

a)   it allows the merger or acquisition in case it decides that the merger or acquisition does not fall under the first paragraph of article 7, but imposes fines on those concerned due to their failure to notify.
b)   in case it decides that the merger or acquisition falls under the first paragraph of article 7, it decides that the merger or acquisition transaction be terminated, together with fines; all de facto situations committed contrary to the law be eliminated; any shares or assets seized be returned, if possible, to their former owners, whose terms and duration shall be determined by the Board, or if not possible, these be assigned and transferred to third parties; the acquiring persons may by no means participate in the management of undertakings acquired during the period until these are assigned to their former owners or third parties, and that other measures deemed necessary by it be taken. 

Notification

Article 12- Notification fully and completely includes information required by the Notification Forms to be prepared by the Board. Either of the parties may submit the notification. The notifying party is obliged to inform the other party concerned of the situation. Relevant documents are enclosed with the notification, and the notification shall be considered to have been submitted on the date it is entered in the records of the Board.

Revocation of Exemption and Negative Clearance Decisions   

Article 13- Exemption and negative clearance decisions may be revoked, or particular behaviour of the parties may be prohibited in the following cases:

a)       Change in any event constituting the basis of the decision,
b)   Failure to fulfil the terms or obligations resolved,
c)    Having taken the decision on the basis of incorrect or incomplete information concerning the agreement in question.

Revocation decision shall be effective as of the date of the change in sub-paragraph (a), and the date of taking the exemption or negative clearance decision in other cases. 

In case incorrectness and incompleteness mentioned in sub-paragraph (c) take place by the fraud or intent of the undertaking concerned, the decision shall be deemed not to have been taken at all.

Request for Information

Article 14- In carrying out the duties assigned to it by this Act, the Board may request any information it deems necessary from all public institutions and organizations, undertakings and associations of undertakings.

Officials of these authorities, undertakings and associations of undertakings are obliged to provide the requested information within the period to be determined by the Board.

On-the-Spot Inspection

Article 15- In carrying out the duties assigned to it by this Act, the Board may perform examinations at undertakings and associations of undertakings in cases it deems necessary. To this end, it is entitled to:

a)   Examine the books, any paperwork and documents of undertakings and associations of undertakings, and take their copies if needed,
b)   Request written or oral statement on particular issues,
c)   Perform examinations on the spot with regard to any assets of undertakings.

Examination is performed by experts employed at the disposal of the Board. While going for an examination, experts carry with them an authorization certificate showing the subject-matter and purpose of the examination, and that an administrative fine shall be imposed should incorrect information be provided.

(Supplementary paragraph: 01.08.2003-4971/Article 25): Those concerned are obliged with providing the copies of information, documents, books and other instruments requested. In case an on-the-spot inspection is hindered or likely to be hindered, the on-the-spot inspection is performed with the decision of a criminal magistrate.


CHAPTER THREE
Administrative Fines

Fines

Article 16- The Board may impose on natural and legal persons having the nature of undertakings and on associations of undertakings and/or the members of such associations the following fines;

a)   hundred million liras in case misleading or incorrect information is provided in applications for exemption, negative clearance and permission as to mergers or acquisitions, and in notifications and applications in relation to agreements concluded before the entry into force of this Act,
b)   hundred million liras in case (Supplementary phrase: 02.07.2005- 5388/Article 2)  no information is provided at all, incomplete, incorrect or misleading information is provided where there is a request for information by the decision of the Board, or an on-the-spot inspection,
c)   fifty million liras in case (Amended phrase: 02.07.2005-5388/ Article 2)  merger or acquisition transactions subject to authorization are committed without the authorization of the Competition Board,
d)   sixty million liras in case the obligations in exemption decisions taken by the Board in accordance with article 5 paragraph three of this Act are not fulfilled.

Provided that it is not less than two hundred million liras for those proven, by the Board decision, to have committed behaviour prohibited in articles 4 and 6 of this Act, and for those who commit behaviour written in article 11 sub-paragraph (b) of this Act, fine is imposed up to ten percent of the annual gross revenue of natural and legal persons having the nature of punishable undertakings, and of associations of undertakings and/or the members of such associations, which generated by the end of the preceding financial year and which shall be determined by the Board.

In case undertakings and associations of undertakings having legal personality are subjected to fines mentioned in paragraph one, natural persons employed in managerial bodies of this legal personality are also fined personally up to ten percent of the fine imposed.

When deciding on fines, the Board shall take into account factors such as the existence of intent, the severity of fault, the market power of the undertaking or undertakings upon which a penalty is imposed, and the severity of potential damage.

Fines are not applicable to agreements and decisions notified within due time, for the period until the final decision by the Board, in case they do not expressly violate the provisions of this Act.

Periodic Fines

Article 17- The Board may impose on undertakings and associations of undertakings the following periodic fines per day, which shall commence from the date to be mentioned in the decision;

a)   fifty million liras for failure to comply with the decision taken pursuant to article 9, concerning the termination of infringement, and other measures,
b)   twenty-five million liras for failure to fulfil the decisions and measures of the Board provided for in article 11 sub-paragraph (b),
c)   twenty-five million liras for performance of the behaviour prohibited pursuant to article 13 paragraph one,
d)   twenty million liras for prevention of on-the-spot inspection by  experts of the Board in accordance with article 15.

Nature and Application of Fines Imposed Pursuant to This Act

Article 18- Any fines provided in this Act are of an administrative nature. Fines or periodic fines are separately applied to each party acting contrary to this Act.

In case a decision as to imposing a periodic fine is appealed, the periodic fine is not applicable as of the date of the appeal if a decision for the suspension of execution is issued about the periodic fine.

Prescription in Fines and Periodic Fines
   
Article 19- The power of the Board to impose fines and periodic fines is subject to the following periods of prescription:

a)    three years for the infringement of provisions related to the application or notification of undertakings or associations of undertakings, provision of information, or on-the-spot inspection,
b)    five years in other cases.

The period commences to run from the day of occurrence of the infringement. If continuous or repeated infringements are in question, it commences from the day the infringement ends or is repeated last.

Any action to be taken by the Board with regard to this infringement for purposes of examination or inquiry interrupts the prescription as of the notification of this action to one of the parties concerned.

That an appeal has been made against the decision interrupts the period of prescription.


SECTION THREE
Organization
      
Competition Authority
   
Article 20- The Competition Authority having a public legal personality, and an administrative and financial autonomy is established in order to ensure the formation and development of markets for goods and services in a free and sound competitive environment, to observe the implementation of this Act, and to fulfil the duties assigned to it by the Act.

The Ministry to which the Authority relates is the Ministry of Industry and Trade.

The Authority is independent in fulfilling its duties. No organ, authority and person may give commands and orders to influence the final decision of the Authority.
   
The central office of the Authority is based in Ankara.
   
Organization of the Competition Authority
   
Article 21- The organization of the Authority consists of the
a)    Competition Board,
b)    Presidency,
c)    Service Units.


CHAPTER ONE
Competition Board

Organization of the Board

Article 22- (Amended Article: 02.07.2005-5388/Article 3)  The Competition Board is composed of a total of 7 members, one being the Chairman and the other being the Deputy Chairman.
The Council of Ministers elects and appoints the members from among the two candidates apiece, to be nominated from inside or outside the following institutions for each vacant membership: two members from the Competition Board, one member from the Ministry of Industry and Trade, one member from the Ministry of State with which the Undersecretariat of State Planning Organization is affiliated, and one member apiece from the Supreme Court of Appeal, Council of State, and Turkish Union of Chambers and Commodity Exchanges.

The Council of Ministers shall commission one of the three candidates to be nominated by the Board as the President/Chairman. The Deputy President/Chairman is elected by the members of the Board.

Qualifications for Appointment

Article 23- The Chairman and members of the Board shall be appointed from among those who had a four-year higher education in law, economics, engineering, management or finance, either at home or abroad, possess a sufficient degree of professional knowledge and experience, and have worked in the public or private sector for at least 10 years, in line with their professions. Furthermore, it is compulsory that the members bear the qualifications mentioned in article 48 paragraph (A) sub-paragraphs 1, 4, 5, 6 and 7 of the Civil Servants Act No. 657.

Term of Office

Article 24- The term of office of the Chairman, Deputy Chairman and members of the Board is six years. The member whose term has expired is eligible for re-election. One third of the members of the Board is renewed every two years. During renewal, numbers and ratios in the provisions concerning the organization of the Board are taken into account. Should the Chairmanship and memberships are vacated before the expiration of the term of office, due to any reason other than renewal, election and appointment are carried out within one month for the vacated seats. The one appointed in such a case completes the term of the person he replaces. 

The offices of the Chairman and members of the Board cannot be terminated due to any reason prior to the completion of their term. However, what terminate are the offices of the Chairman and members of the Board who are realized to have lost the qualifications required for their appointment or whose position is realized to be contrary to article 25 of this Act, by the decision of the Board, or whose offence with regard to the duty assigned by the Act is proven by a court decision.

Prohibitions
   
Article 25- The Chairman and members of the Board may not undertake any official or private mission, engage in commerce, be shareholders in partnerships, unless it is based on a special Act.

The Chairman and members of the Board are, prior to assuming office, obliged to dispose of all kinds of securities in their possession within the meaning of the capital market legislation, apart from securities issued by the Treasury in connection with borrowing, by means of selling or transferring them to persons other than their kin by blood up to the third degree and their kin by marriage up to the second degree. Those members who do not act in conformity with this provision within 30 days shall be deemed to have resigned from membership.

Positions in associations and foundations which aim at social assistance and education, and partnership in non-profit cooperatives fall outside this provision.

The members and staff of the Board may not disclose and use in their own or others' interests the confidential information as to the Authority, and trade secrets of undertakings and associations of undertakings that they learned during the implementation of this Act, even if they have left their office.
   
Oath
   
Article 26- Before the First Presidential Court of the Supreme Court of Appeal, the members of the Board take an oath that during their term of office, they shall carry out the tasks of the Board with full attention and honesty, and they shall not act or allow others to act contrary to the provisions of the Act.

The application made for the oath is deemed to be among the urgent business by the Supreme Court of Appeal. The Chairman and members of the Board may not assume office before taking an oath.

Duties and Powers of the Board

Article 27- The duties and powers of the Board are as follows:

a)    To carry out, upon application or on its own initiative, examination, inquiry and investigation about the activities and legal transactions prohibited in this Act; to take the necessary measures for terminating infringements upon establishing that the provisions provided in this Act are infringed, and to impose administrative fines on those responsible for them,
b)   To evaluate the requests of those concerned for exemption and negative clearance, and to grant an exemption and negative clearance certificate to the appropriate agreements,
   c)   To constantly follow up the markets to which exemption decisions and negative clearance certificates are related, and to re-evaluate the applications of those concerned in case changes are established in these markets or in the positions of  the parties,
d)   To permit mergers and acquisitions,
e)   To elect the Deputy Chairman of the Board,
f)   To issue communiqués and make the necessary regulations as to the implementation of this Act, 
g)     To opine, directly or upon the request of the Ministry, concerning the amendments to be made to the legislation with regard to the competition law,
h)   To monitor legislations, practices, policies and measures of the other countries, concerning agreements and decisions limiting competition,
         i)    To determine and observe the implementation of the personnel policies of the Authority, to perform the appointment transactions of the personnel, to approve the annual budget, final account of revenues and expenses, and annual work schedules of the Authority, which are prepared by the Presidency, and to decide for transfers among the accounts in the budget if needed,
j)   To determine the candidates to be nominated by the Authority for the vacated Board memberships,
             k)   To issue an annual report on its works, and the situation and developments in its fields of duty,
l)   To negotiate and resolve the suggestions about purchases such as the procurement of movable and real property and fixtures, and about sales and leasings, and to make the necessary regulations therein,
   m)   To decide on any kind of transactions about credits, rights and obligations of the Authority concerning third parties,
n)   To fulfil the other duties assigned by the Act.

Functioning Principles of the Board

Article 28- The Board is chaired and represented by the Chairman, and by the Deputy Chairman in cases of leave, sickness, traveling and in other cases where the Chairman is not present.

Meeting is chaired by the Chairman of the Board, or by the Deputy Chairman in his absence, and prior to the meeting, he determines the agenda to be resolved, and advises it to the members of the Board.

The members of the Board may not take part in negotiations and votings in events concerning themselves, and their kin by blood up to the third degree and their kin by marriage up to the second degree.


CHAPTER TWO

Presidency

Article 29- The Presidency is composed of the Chairman of the Board, the Deputy Chairman and the Vice-Chairmen of the Board.

The Chairman of the Board is the highest ranking chief of the Authority, and is responsible for the overall management and representation of the Authority.

This responsibility encompasses the duties and powers as to the regulation, supervision, evaluation of the works of the Authority within a general framework, and their announcement to the public when necessary.

Duties and Powers of the Presidency

Article 30- The duties and powers of the Presidency are as follows:

a)    To ensure the organization and coordination at the highest level that the Competition Board which is the decisive body of the Authority and the service units work in harmony, efficiently, in a disciplined and orderly manner, and to solve the problems likely to occur between the service units of the Authority with respect to  duties and powers,
b)    To determine the agenda, date and time of the Board meetings, and to run the meetings,
c)    To ensure the fulfilment of what is required by the Board decisions, and to monitor the implementation of these decisions,
d)    To finalize and submit to the Board suggestions received from the service units,
e)    To prepare and submit to the Board the annual budget, final account of revenues and expenses, and annual work reports of the Authority, and to ensure the implementation of the budget of the Authority, the collection of revenues and the carrying out of expenses,
f)    To opine about decisions to be taken as to the competition policy, and the relevant legislation,
g)    To arrange for and conduct the relations of the Authority with the Ministry and other organizations,
h)    To represent the Authority in the presence of official and private organizations,
i)    To ensure that final decisions of the Board, and communiqués and Regulations to be prepared by the Authority are published,
j)    To determine the scope of duty and power of the personnel authorized to sign on behalf of the Chairman of the Board.

Vice-Presidents (Vice-Chairmen)

Article 31- Two Vice-Presidents may be commissioned for purposes of assisting the President in conducting the Presidential services. Vice-Presidents are obliged to fulfil duties and carry out  instructions given by the President, and to ensure harmony and cooperation between the levels of the organization and the service units concerned.

Service Units

Article 32- The service units of the Competition Authority are composed of the main service units organized as Department Head Offices, advisory units and auxiliary service units.

Supervision

Article 33- Accounts of the Authority are subject to the supervision of the State Audit Court.


CHAPTER THREE

Status of the Personnel of the Authority
      
Article 34- The essential and permanent duties required by the services of the Authority are conducted via the personnel employed on a contractual basis with an administrative service contract. Adequate number of expert professional staff and specialized non-career personnel may be employed at the disposal of the Authority.

The personnel of the Authority is subject to the Civil Servants Act No. 657, apart from the salary and financial rights. The Board is free in arranging the statuses of establishment and staff in compliance with the needs. The cancellation and creation of posts are carried out by the Board.

Those services calling for temporariness or a particular expertise are determined by the Presidency. Proxy or job contract provisions are applicable to personnel to be employed in such tasks. For those to be employed pursuant to this paragraph, salaries they receive from social security organizations shall not be cut off.
   
Foreign experts may also be employed pursuant to the principles of the Regulations which shall be prepared by the Presidency and which shall take effect upon the approval of the Board.

Appointment as Assistant Experts on Competition

Article 35- The following qualifications are sought for enabling appointment as assistant experts on competition:

a)   (Amended sub-paragraph: 02.07.2005-5388/Article 4)  To be a graduate of at least four-year higher education from faculties of law, economics, political sciences, management, economic and administrative sciences, or from management engineering or industrial engineering departments, or of higher education institutions abroad which are deemed equivalent to them,
b)   (Amended sub-paragraph: 02.07.2005-5388/Article 4)  To succeed in the examination to be held jointly or separately for the branches listed in the sub-paragraph above,
c)   To succeed in the foreign language examination to be held in one of the English, French and German languages,
d)   Not to be over thirty years of age as of the first day of January of the examination year.

Other necessary requirements are determined in the examination Regulations to be issued by the Board.

Experts on Competition

Article 36- Those appointed as assistant experts on competition pursuant to article 35 are awarded the title of "Expert on Competition" in case their expertise thesis which they shall prepare or have already prepared concerning their topics is approved by the Board, provided that they have worked for at least three years and received a positive record.

Experts and assistant experts on competition bear the title and possess the power of professional staff.

Salary and Other Financial Rights

Article 37- Monthly salaries of the Chairman and members of the Board are determined by the Council of Ministers upon the proposal of the Ministry of Industry and Trade, provided that they do not exceed twice the salary of the highest ranking civil servant, including all payments. Those which are not subject to the income tax among the payments made to the highest ranking civil servant shall also not be subject to the income tax pursuant to this Act.

Salaries and other financial rights of the Authority personnel are determined by the Board upon the proposal of the Presidency, under the principles in the first paragraph with regard to salaries and making changes thereto. 
   
Considering the Retirement and Service Periods

Article 38- The Chairman and members of the Board, and the other personnel are subject to the Pensioner's Fund Act. From among the persons who are subject to the Civil Servants Act No. 657, those appointed to the Chairmanship or memberships of the Board, and those employed in the Authority return to the position as a civil servant, and are appointed to an office compatible with their status, in case their term of office expires. In such a case, the periods they served in the Authority are considered in their services pursuant to the provisions of the Act they are subject to.

These provisions are also applicable to the Chairman and members, experts or the other personnel who come from universities, with reserving the necessary requirements for receiving academic titles.

With regard to retirement, the Chairman of the Board, the members of the Board and the Heads of Departments are considered to be at the same  level with the Undersecretary of the Ministry, the Deputy Undersecretaries of the Ministry, and the General Managers of the Ministry respectively. The status of the other personnel as to retirement shall be indicated in the Regulations which shall be prepared by the Presidency and which shall be put into force upon the approval of the Board.

Revenues of the Authority

Article 39- Revenues of the Authority set up the budget of the Authority, and they are made up of the following items of revenues:

a)      The subsidy to be allocated in the budget of the Ministry,
b)    (Annulled: 01.08.2003-4971/Article 25-B) 
c)    (Supplement: 17/9/2004-5234/Article 29) Payments to be made by four per ten thousand of the capitals of all partnerships to be newly established with the status of an incorporated and limited company, and that of the remaining portion in case of capital increase,   
d)    Publication and other revenues.

Revenues belonging to the Authority are collected in an account to be opened in the Central Bank of the Republic of Turkey or a state bank. (Annulled last sentence: 01.08.2003-4971/Article 25-B)


SECTION FOUR

Procedure in Examinations and Inquiries of the Board

Preliminary Inquiry

Article 40- On its own initiative or upon the applications filed with it, the Board decides to open a direct investigation, or to conduct a preliminary inquiry for determining whether or not it is necessary to open an investigation.

Should it be decided to conduct a preliminary inquiry, the Chairman of the Board assigns one or more of the experts among the professional staff as reporters.

The reporter who is entrusted with the task of conducting a preliminary inquiry notifies the Board in writing within 30 days of the information and any evidence obtained by him, and his comments about the issue.
Conclusion of Preliminary Inquiry

Article 41- Within 10 days following the submission of the preliminary inquiry report to the Board, the Board convenes in order to evaluate the information obtained and make a decision, and decides on whether or not to open an investigation.

Notification of Applicants

Article 42- In case the Board deems the claims put forward in applications for informing or complaint serious and sufficient, informers or complainants are notified in writing that the claims put forward have been deemed serious and that an inquiry has been initiated. 

In cases where the Board either expressly rejects applications, or is deemed to have rejected them by means of failure to notify within due period, anyone who documents to have a direct or indirect interest may resort to jurisdiction against the rejection decision of the Board.

Commencement of Investigation by the Board

Article 43- (Amended first sentence: 02.07.2005-5388/Article 5)  If it is decided to perform an investigation, the Board designates the reporter or reporters who shall conduct the investigation under the supervision of the department head concerned. The investigation is concluded within 6 months at the latest. In cases where it is deemed necessary, the Board may grant an additional period of 6 months only once.

The Board notifies the parties concerned of investigations initiated by it, within 15 days of issuing the decision for the initiation of investigation, and requests that the parties submit their first written pleas within 30 days. In order to enable the commencement of the first written reply period granted to the parties, it is required that the Board forwards to the parties concerned this notification letter, accompanied by adequate information as to the type and nature of the claims.

The decision of the Board to initiate an investigation is final.

Collecting Evidence and Informing the Parties

Article 44- A delegation acting on behalf of the Board and composed of (Annulled phrase: 02.07.2005-5388/Article 5)  (...) reporters designated and commissioned by the Board may, during the investigation stage, exercise the powers to request information and carry out an on-the-spot inspection as provided in articles 14 and 15 of this Act respectively. Within this period determined, it may request from the parties and the other places concerned the forwarding of paperwork and the provision of any information which are deemed necessary by it. During the investigation stage of the Board, the person or persons claimed to have infringed this Act may, at all times, submit to the Board any information and evidence likely to influence the decision. 

Those parties which are notified of the initiation of an investigation against them may, until their request for enjoying the right to hearing, ask for a copy of any paperwork drawn up within the Authority in connection with themselves, and if possible, a copy of any evidence obtained.

   The Board may not base its decisions on issues about which the parties have not been informed and granted the right to defense.

Notice and Reply

Article 45- The report prepared at the end of the investigation stage is notified to all members of the Board and the parties concerned.

Those determined to have infringed this Act are notified to submit their written pleas to the Board within 30 days. Those charged with conducting the investigation declare an additional written opinion within 15 days against the pleas to be submitted by the parties, and this is also notified to all members of the Board and the parties concerned. The parties may reply to such opinion within 30 days. In case the parties provide justifiable grounds, these periods may be extended only once and by one fold at the most. 

The pleas of the parties not submitted within due period shall not be taken into account.

Hearing

Article 46- Hearing is held upon the parties' declaration of their will to enjoy the right to hearing in their petition of reply or defense. Furthermore, the Board may decide on its own initiative to hold a hearing.

Hearing is held within at least 30 days and at most 60 days from the end of the investigation stage. Invitations for the hearing are forwarded to the parties at least 30 days before the day of the hearing. 

Principles Concerning the Hearing

Article 47- Hearings are held publicly. The Board may decide to hold the hearing in camera on grounds of protecting the general morals and trade secrets.

Hearings are chaired by the Chairman of the Board, or by the Deputy Chairman of the Board in his absence. The meeting is held with the participation of the Chairman of the Board or the Deputy Chairman, and at least (Amended phrase: 02.07.2005-5388/Article 5)  four members of the Board.

Hearings are completed in no longer than 5 consecutive sessions, and various meetings held within the same day are deemed as one session.

The parties are obliged to notify, 7 days before the hearing at the latest, the Board of the means of proof they shall utilize in the hearing. The parties may not utilize the means of proof not notified within due period.

During the hearing, the parties concerned may utilize any evidence and means of proof provided in the Part Two Chapter Eight of the Code of Civil Procedure. The parties claimed to have infringed this Act, or their representatives, and those who prove to the Board prior to the session that they have direct or indirect interests, or their representatives may participate in sessions.



Final Decision

Article 48- The decision is made on the same day after the hearing, or if not possible, within 15 days, together with its grounds.

In cases where a hearing is not requested by the parties, and the Board does not decide to hold a hearing on its own initiative, the final decision is made within 30 days following the end of the investigation stage, pursuant to the examination to be performed on the file.

In case the parties concerned fail to attend the hearing despite the decision to hold a hearing, the decision is made within one week following the date of the meeting determined, pursuant to the examination to be performed on the file.

Confidentiality of Meetings

Article 49- Decisions of the Board are taken as a result of confidential meetings and are communicated publicly. No member of the Board may cast an abstention vote. Except for the ones having an excuse, members who have been present at the hearing are obliged to participate in meetings.

Procedure in the Meeting

Article 50- The meeting is chaired by the Chairman of the Board, or in his absence, by the Deputy Chairman, and he determines matters to be resolved. After such matters are discussed freely, the Chairman collects the votes and casts his own vote finally.

Meeting and Decision Quorum

Article 51- In its final decisions, the Board convenes with the participation of at least a total of (Amended phrase: 02.07.2005-5388/Article 5)  five members including the Chairman or the Deputy Chairman, and it decides via the parallel votes of at least (Amended phrase: 02.07.2005-5388/Article 5)  four members.

Where the necessary quorum for the decision cannot be attained in the first meeting, the Chairman ensures that all members participate in the second meeting. However, if not possible, the decision is made via the absolute majority of the participants in the meeting. In this case, the quorum for the meeting may also not be less than the one mentioned in the first paragraph. In case of a tie vote in the second meeting, the vote of the side of the Chairman is deemed preponderant.

For decisions except the final decision, and particularly for  decisions and transactions having the nature of measures and recommendations, it is required that at least one third of the members of the Board convenes and that the absolute majority of the participants in the meeting makes a decision.   
   
Points Required in Decisions

Article 52- Decisions involve the following points:

a)   Names and surnames of the members of the Board who made the decision,
b)   Names and surnames of those who carried out the examination and inquiry,
c)   Names, titles, residences and distinguishing characteristics of the parties,
d)     Summary of the claims of the parties,
e)   Summary of the examination and of the economic and legal issues discussed,
f)   Opinion of the reporter,
g)    Evaluation of all evidences and pleas submitted,
h)    Grounds, and the legal basis of the decision,
i)    Conclusion,
j)    If any, writings about the dissenting votes.

Duties imposed on and rights granted to the parties with the decision made have to be written explicitly such that they do not pave the way for doubts and hesitations.

Taking the Decisions to Writing

Article 53- The decision is written by the Chairman of the Board or a member to be commissioned by him. Decisions are signed by the members participating in the meeting. Those members against the decision may take to writing dissenting votes individually or jointly. The original of the decision is kept in the archives of the Board. A copy of it is submitted to the parties in return for signature. Another copy is forwarded to the Publication Department of the Competition Authority for publication purposes.

(Annulled phrase: 01.08.2003-4971/Article 25)  (...) Decisions of the Board are published (Amended phrase: 17.09.2004-5234/Article 29)  on the internet page of the Authority in such a way not to disclose the trade secrets of the parties.

Commencement Date of Periods

Article 54- In decisions of the Competition Board, periods commence as of the date the reasoned decision is communicated to the parties.

Appealing Against Decisions of the Board

Article 55- Appeal may be made to the Council of State within due period against the final decisions, measure decisions, fines and periodic fines of the Board, as of communicating the decision to the parties. (Amended sentence: 01.08.2003-4971/Article 25-D)  Appealing against decisions of the Board does not cease the implementation of decisions, and the follow-up and collection of fines.

(Amended sentence: 01.08.2003-4971/Article 25-D)  Fines are paid (Amended phrase: 17.09.2004-5234/Article 29-c)  within three months as of the date of communicating the final decision of the Board to the one concerned. The enforcement of the decision of the Board imposing fines or periodic fines is subject to the provisions of the Act on the Procedure of Collection of Public Credits No. 6183.


SECTION FIVE

Private Law Consequences of Limiting Competition

Legal Nature of Agreements and Decisions Contrary to This Act

Article 56- Any agreements and decisions of associations of undertakings contrary to article 4 of this Act are invalid. The performance of acts arising out of such agreements and decisions may not be requested. In case a request is made for reclamation due to the invalidity of previous acts fulfilled, the return obligation of the parties is subject to articles 63 and 64 of the Code of Obligations.

The provision of article 65 of the Code of Obligations is not applicable to disputes arising out of this Act.

Right to Compensation

Article 57- Anyone who prevents, distorts or restricts competition via practices, decisions, contracts or agreements contrary to this Act, or abuses his dominant position in a particular market for goods or services, is obliged to compensate for any damages of the injured. If the damage has resulted from the behaviour of more than one people, they are responsible for the damage jointly.

Compensation for the Damage

Article 58- Those who suffer as a result of the prevention, distortion or restriction of competition, may claim as a damage the difference between the cost they paid and the cost they would have paid if competition had not been limited. Competing undertakings affected by the limitation of competition may request that all of their damages are compensated by the undertaking or undertakings which limited competition. In determining the damage, all profits expected to be gained by the injured undertakings are calculated by taking into account the balance sheets of the previous years as well.

If the resulting damage arises from an agreement or decision of the parties, or from cases involving gross negligence of them, the judge may, upon the request of the injured, award compensation by three fold of the material damage incurred or of the profits gained or likely to be gained by those who caused the damage.

Burden of Proof

Article 59- Should the injured submit to the jurisdictional bodies proofs such as, particularly, the actual partitioning of markets, stability observed in the market price for quite a long time, the price increase within close intervals by the undertakings operating in the market, which give the impression of the existence of an agreement, or the distortion of competition in the market, then the burden of proof is for the defendants that the undertakings are not engaged in concerted practice.

The existence of agreements, decisions and practices limiting competition may be proved by any kind of evidence.




SECTION SIX

Final Provisions

Offences Committed on the Funds, Paperwork and Properties of the Authority

Article 60- The funds, paperwork and any properties of the Authority have the force of State Property. The Chairman and members of the Board, and its personnel who commit offences about their offices are punished in the same way like Civil servants. Those offences committed against the members and the personnel of the Board are deemed to have been committed against a Civil servant.

Prosecutions in this respect are conducted pursuant to general provisions.

Notice

Article 61- Notifications to be made to the parties concerned in accordance with this Act are performed pursuant to the provisions of the Notice Act No. 7201.

Regulations

Article 62- Apart from those mentioned in this Act, principles on the exercise of the powers by the Authority, its management and working principles, procedures and principles to be applied in the collection of its revenues, carrying out of its expenses and supervision of these transactions, principles of changes to be made to monthly salaries, principles as to employing foreign experts, regulations concerning the purchase and tender procedure of the movables and immovables to be purchased by the Authority, and provisions with regard to the accounting system of the Authority are provided in the Regulations to be prepared by the Board and put into force via the resolution of the Council of Ministers.

Regulations to be issued pursuant to this Act shall be issued within one year from the date of publication of this Act.

Inapplicable Provisions

Article 63- The Authority is not subject to the General Accounting Act No. 1050, the State Tender Act No. 2886, the Allowances Act No. 6245, and to their annexes and amendments.

Revenues of the Authority are exempt from the Corporation Tax, and from the Inheritance and Transfer Tax due to donations and aids to be granted; interests to accrue in favor of the Authority due to any transactions to be performed are exempt from the Banking and Insurance Transactions Tax; revenues of the Authority and all transactions concerning these revenues are exempt from any kind of taxes, duties and charges in the purchase and sale of immovable goods; vehicles to be purchased for the Authority are exempt from the Vehicle Purchase Tax and Stamp Duty.

Temporary Article 1- The first appointment to the Competition Board is made pursuant to the principles of article 22. It is such that the provisions as to the candidates to be nominated by the Competition Board are not applicable.

In the first appointment, the Prime Minister and the Minister of Industry and Trade each nominate two candidates for membership, instead of the Board.

The members of the Board to be renewed by the end of the second and fourth years are determined by drawing names in the last meetings of the Board within such period. For the first term, the Chairman of the Board is appointed by the Council of Ministers from among the two candidates to be nominated by the Minister of Industry and Trade, and the Chairman and the Deputy Chairman of the Board complete their terms within six years without participating in the lot.

Temporary Article 2- The Competition Board to be appointed under the principles mentioned in the Temporary Article 1 announces that situation with a communiqué after the completion of the organization of the Competition Authority. Any agreements and decisions existing on the date of announcement are notified to the Board within 6 months from this date.

Temporary Article 3- Within one year from the date of entry into force of this Act, the Competition Board may appoint sufficient number of experts from public and private organizations to work in the Authority, without seeking the qualifications in articles 35 and 36 of the Act, provided that it is for once.

It is such that those to be appointed as experts are required to possess the qualifications listed in sub-paragraphs (a) and (c) of the first paragraph of article 35, have at least a five-year professional experience, and be under forty-one years of age. For those who shall be appointed as experts from public organizations, the requirement of having taken up their profession by a competitive and proficiency exam is sought as well.

Until the organization of the Competition Authority is completed, the personnel of the related Ministry may be temporarily commissioned in the fulfillment of the tasks of the Authority.

(Supplement: 02.07.2005-5388/Article 6) Temporary Article 4- Election and appointment shall not be made for the memberships vacated until the number of Board members is reduced to seven.

Entry Into Force

Article 64- Articles 16 and 17 of this Act concerning administrative fines shall enter into force one year after its publication, while the other articles on the date of its publication.   

Execution

Article 65- The provisions of this Act shall be executed by the Council of Ministers.
#118
LABOUR ACT OF TURKEY



Law No. 4857


Date of enactment: 22.05.2003


Published in the Official Gazette 0n 10 June 2003




CHAPTER ONE


General Provisions



Purpose and Scope:


Article 1. The purpose of this Act is to regulate the working conditions and work-related rights and obligations of employers and employees working under an employment contract.


With the exception of those cited in Article 4, this Act shall apply to all the establishments and to their employers, employer's representatives and employees, irrespective of the subject matter of their activities.


Establishments, employers, employer's representatives and employees shall be subject to this Act irrespective of the date of the notification to be made to the regional directorate of labour under Article 3.



Definitions:


Article 2. The employee is a real person working under an employment contract; the employer is a real or corporate person or a noncorporate institution or organisation employing employees; and the relationship established between the employee and employer shall be referred to as the employment relationship. The unit wherein the employees and material and immaterial elements are organised with a view to ensure the production of goods and services by the employer is called the establishment.


All premises used by reason of the nature and execution of the work and organised under the same management, including all facilities annexed to the establishment such as rest rooms, day nurseries, dining rooms, dormitories, bathrooms, rooms for medical examination and nursing, places for physical and vocational training and courtyards as well as the vehicles are deemed to be part of the establishment.


The establishment is an integrated organisational entity within the meaning of the annexed and adjunct facilities and vehicles.


The employer's representative is the person acting on behalf of the employer and charged with the direction of work, the establishment and enterprise. The employer is directly liable towards the employees for the conduct and responsibilities of his representative acting in this capacity.


Any obligations and responsibilities for which the employer is liable under this Act shall also be borne by the employer's representative. Bearing the status of an employer's representative does not abrogate the rights and obligations which one has as an employee.


The connection between the subcontractor who undertakes to carry out work in auxiliary tasks related to the production of goods and services or in a certain section of the main activity due to operational requirements or for reasons of technological expertise in the establishment of the main employer (the principal employer) and who engages employees recruited for this purpose exclusively in the establishment of the main employer is called "the principal employer-subcontractor relationship". The principal employer shall be jointly liable with the subcontractor for the obligations ensuing from this Labour Act, from employment contracts of subcontractor's employees or from the collective agreement to which the subcontractor has been signatory.


The rights of the principal employer's employees shall not be restricted by way of their engagement by the subcontractor, and no principal employer – subcontractor relationship may be established between an employer and his ex- employee. Otherwise, based on the notion that the principal employer- subcontractor relationship was fraught with a simulated act, the employees of the subcontractor shall be treated as employees of the principal employer. The main activity shall not be divided and assigned to subcontractors, except for operational and work- related requirements or in jobs requiring expertise for technological reasons.



Declaring the establishment:


Article 3. The employer who sets up or takes over an establishment covered by this Act, who completely or partly changes the nature of his business, or who permanently closes down an establishment due to the completion of work or for any other reason must, within one month, notify the regional directorate of labour of the name and surname or trade mark and address as well as the names, surnames and addresses of employer representatives, if there are any.


The subcontractor must also make notification for his own establishment set up in order to produce goods or services in his capacity as subcontractor, according to the stipulations envisaged in the first sentence of this Article



Exceptions:


Article 4. The provisions of this Act shall not apply to the activities and employment relationships mentioned below.


Sea and air transport activities,


In establishments and enterprises employing a minimum of 50 employees (50 included) where agricultural and forestry work is carried out.


Any construction work related to agriculture which falls within the scope of family economy,


In works and handicrafts performed in the home without any outside help by members of the family or close relatives up to 3 rd degree (3 rd degree included),


Domestic services,


Apprentices, without prejudice to the provisions on occupational health and safety,


Sportsmen,


Those undergoing rehabilitation,


Establishments employing three or fewer employees and falling within the definition given in Article 2 of the Tradesmen and Small Handicrafts Act,

However, the following shall be subject to this Act;


Loading and unloading operations to and from ships at ports and landing stages,


All ground activities related to air transport,


Agricultural crafts and activities in workshops and factories manufacturing implements, machinery and spare parts for use in agricultural operations,


Construction work in agricultural establishments,


Work performed in parks and gardens open to the public or subsidiary to any establishment,


Work by seafood producers whose activities are not covered by the Maritime Labour Act and not deemed to be agricultural work.


The principle of equal treatment:


Article 5. No discrimination based on language, race, sex, political opinion, philosophical belief, religion and sex or similar reasons is permissible in the employment relationship.


Unless there are essential reasons for differential treatment, the employer must not make any discrimination between a full-time and a part-time employee or an employee working under a fixed-term employment contract (contract made for a definite period) and one working under an open-ended employment contract (contract made for an indefinite period).


Except for biological reasons or reasons related to the nature of the job, the employer must not make any discrimination, either directly or indirectly, against an employee in the conclusion, conditions, execution and termination of his (her) employment contract due to the employee's sex or maternity.


Differential remuneration for similar jobs or for work of equal value is not permissible.


Application of special protective provisions due to the employee's sex shall not justify paying him (her) a lower wage.


If the employer violates the above provisions in the execution or termination of the employment relationship, the employee may demand compensation up his (her) four months' wages plus other claims of which he (she) has been deprived. Article 31 of the Trade Unions Act is reserved.


While the provisions of Article 20 are reserved, the burden of proof in regard to the violation of the above – stated provisions by the employer rests on the employee.


However, if the employee shows a strong likelihood of such a violation, the burden of proof that the alleged violation has not materialised shall rest on the employer.



The transfer of the establishment or one of its sections:


Article 6. When, due to a legal transaction, the establishment or one of its sections is transferred to another person, employment contracts existing in the establishment or in the section transferred on the date of the transfer shall pass on to the transferee with all the rights and obligations involved.


In the calculation of all the entitlements based on the employee's length of service, the transferee (new employee) must act, in regard to the transactions concerning the employee, according to the date on which the employee had started work under the transferor (previous employer).


In a transfer executed in accordance with the above provisions, the transferor and transferee shall be jointly liable for the obligations which have materialised before the transfer and which must be defrayed on the date of the transfer.


The liability of the transferor is limited, however, to the two – year period following the date of the transfer.


Provisions on joint liability shall not be applicable in cases where the corporate (legal personality) status ceases to exist as a result of a merger, participation or where the corporate type is changed.


The transferor or transferee is not authorised to terminate the employment contract solely because of the transfer of the establishment or a section thereof, nor shall the transfer entitle the employee to terminate the contract for just cause. The right of the transferor or the transferee to terminate for reasons necessitated by economic, technological or organisational changes is reserved; so is the employer's and the employee's right to break the contract for just cause.


The provisions stated above shall not be applicable in the event of the transfer of the establishment as a result of liquidation of the employer's assets due to the insolvency of the employer.



Temporary employment relationship:


Article 7. A temporary employment relationship is established when, in order to have work performed similar to what the employee was doing, the employer transfers the employee, upon obtaining his written consent at the time of transfer, to another establishment within the structure of the same holding company or the same group of companies, or to another employer. While in this case the employment contract between the employer and the employee continues to be in effect, the employee is obligated to perform work for the employer with whom the temporary employment relationship has been established. While the employer who is the party to the temporary employment relationship has the right to give commands to the employee, he is under the obligation to provide the employee with the necessary training against health and safety risks.


Temporary employment relationship may be established for a period not to exceed six months, and it may be renewed twice, if required.


The employer's (transferor's) obligation to pay the employee's wages shall continue. The employer with whom temporary employment relationship is established (transferee) shall be jointly liable with the employer (transferor) for the employee's unpaid wages for the period during which the employee was engaged in his establishment as well as for the duty to protect the employee and the payment of social security contributions.


For the payment of damages, which the employee has inflicted due to his own fault in relation to the establishment and employment, the employee shall be liable to the employer with whom temporary employment relationship has been established.


Unless the contrary can be inferred from the temporary employment contract of the employee, the provisions of this Act relating to other rights and obligations of the employee shall also apply to his relationship with the employer with whom temporary employment relationship has been established.


In the event the employer who has taken over the employee temporarily is the party to a collective labour dispute which has reached the strike and lock-out stage, the employee must not be engaged in work during the execution of the strike and lock-out. The provisions of Article 39 of Act No. 2822 on Collective Agreements, Strikes and Lock-outs are, however reserved. The transferor employer must engage such employees in work at his own establishment.


In establishments where collective dismissals have taken place, no temporary employment relationship may be established in jobs affected by the collective dismissal within the six-month period following the collective dismissal.



SECOND CHAPTER


Employment Contract; Types and Termination



Definition and form:



Article 8. Employment contract is an agreement whereby one party (the employee) undertakes to perform work in subordination to the other party (the employer) who undertakes to pay him remuneration. The employment contract is not subject to any special form unless the contrary is stipulated by the Act.


Written form is required for employment contracts with a fixed duration of one year or more, Such written documents are exempt from the stamp tax and all kinds of fees.


In cases where no written contract has been made, the employer is under the obligation to provide the employee with a written document, within two months at the latest, showing the general and special conditions of work, the daily or weekly working time, the basic wage and any wage supplements, the time intervals for remuneration, the duration if it is a fixed term contract, and conditions concerning the termination of the contract. This subsection shall not apply in the case of fixed term contracts whose duration does not exceed one month. If the employment contract has expired before the lapse of two months, this information must be communicated to the employee in written form on the expiration date at the latest.



The freedom to determine the type and conditions of the employment contract:


Article 9. The parties are free to draw up the employment contract in a manner commensurate to their needs, without prejudice to the limitations brought up by legislation.


Employment contracts shall be made for a definite (fixed term) or indefinite (open-ended) period. In terms of the manner of working, these contracts may be concluded on a full-time or part-time basis, or with a trial (probation) period or in other forms possible.



Employment contracts in continual and transitory work:


Article 10. Employment which, owing to its nature, lasts only up to 30 days is transitory; and employment which requires a longer period is continual.


Articles 3,8,12,13,14,15,17,23,24,25,26,27,28,29,30,31,34,53,54,55,56,57,58,59,


75,80 and transitional Article 6 of this Act shall not be applicable in employment contracts made for transitory work. If employment is transitory, provisions of the Obligations Act shall apply on matters contained in these Articles.



Employment contract for a definite (fixed) term and for an indefinite (open-ended) term:


Article 11. An employment contract is deemed to have been made for an indefinite period where the employment relationship is not based on a fixed term. An employment contract for a definite period is one that is concluded between the employer and the employee in written form, which has a specified term or which is based on the emergence of objective conditions like the completion of a certain work or the materialisation of a certain event.


An employment contract for a definite period must not be concluded more than once, except when there is an essential reason which may necessitate repeated (chain) contracts. Otherwise, the employment contract is deemed to have been made for an indefinite period from the very beginning.


Chain contracts based on essential reasons shall maintain their status as contracts made for a definite period.



Limitations on the distinction between fixed-term and open-ended contracts:


Article 12. An employee working under an employment contract for a definite period shall not be subjected to differential treatment in relation to a comparable employee working under an employment contract for an indefinite period.


Divisible amounts for a given time period relating to wages and other monetary benefits to be given to an employee working under a fixed-term contract shall be paid in proportion to the length of time during which the employee has worked. In cases where seniority (length of service) in the same establishment or the same enterprise is treated as the criterion in order to take advantage of an employment benefit, the seniority criterion foreseen for a comparable employee working under an open-ended contract must be applied to an employee with a fixed-term contract, unless there is a reason justifying the application of a different seniority criterion for an employee working under a fixed-term contract.


The comparable employee is the one who is employed under an open-ended contract in the same or a similar job in the establishment. If there is not such an employee in the establishment, then an employee with an open-ended contract performing the same or a similar job in a comparable establishment falling into the same branch of activity will be considered as the comparable employee.



Part-time and full-time employment contracts:


Article 13. The employment contract shall be considered as a part-time contract where the normal weekly working time of the employee has been fixed considerably shorter in relation to a comparable employee working full-time.


An employee working under a part-time employment contract must not be subjected to differential treatment in comparison ta a comparable full-time employee solely because his contract is part-time, unless there is a justifiable cause for differential treatment. The divisible benefits to be accorded to a part-time employee in relation to wages and other monetary benefits must be paid in accordance to the length of his working time proportionate to a comparable employee working full-time.


The comparable employee is the one who is employed full-time in the same or a similar job in the establishment. In the event there is not such an employee in the establishment, an employee with a full-time contract performing the same or similar job in an appropriate establishment which falls into the same branch of activity will be considered as the comparable employee.


If there are vacant positions suited to the qualifications of employees working in the establishment, the employees' requests to move into full-time from part-time jobs or vice versa shall be taken into consideration; vacancies shall be announced without delay.



Work on call:


Article 14. Employment relationship which foresees the performance of work by the employee upon the emergence of the need for his services, as agreed to in the written employment contract, qualifies as a part-time employment contract based on work on call.


In the event the length of the employee's working time has not been determined by the parties in terms of time slices such as a week, month or year, the weekly working time is considered to have been fixed as twenty hours. The employee is entitled to wages irrespective of whether or not he is engaged in work during the time announced for work on call.


Unless the contrary has been decided, the employer who has the right to request the employee to perform his obligation to work upon call must make the said call at least four days in advance.


The employee is obliged to perform work upon the call communicated to him within the said time limit. If the daily working time has not been decided in the contract, the employer must engage the employee in work for a minimum of four consecutive hours at each call.



Employment contract with a trial (probation) clause:


Article 15. If the parties have agreed to include a trial clause in the employment contract, the duration of the trial term shall not exceed two months. However, the trial period may be extended up to four months by collective agreement.


Within the trial term the parties are free to terminate the employment contract without having to observe the notice term and without having to pay compensation. The employee's entitlement to wages and other rights for the days worked is reserved.



Employment contracts based on a "gang contract":


Article 16. The contract concluded between an employer and a gang of employees represented by one of the employees acting as the gang leader is called a gang contract.


The gang contract must be made in written form irrespective of the duration of employment contracts which will emanate from it. The gang contract must specify the identity and wage of each employee separately.


Once each employee named in the gang contract begins work, an employment contract is deemed to have been concluded between the employer and the employee with the conditions specified in the gang contract. However, the provision of Article 110 of the Obligations Act also apply to the gang contract.


The employer or his representative must pay the employees' wages separately as each employee named in the gang contract begins work. For the gang leader's acting as an intermediary or for any other reason, no deductions may be made on behalf of the gang leader from the wages of employees who form the gang.



Notice of termination:


Article 17. Before terminating a continual employment contract made for an indefinite period, a notice to the other party must be served by the terminating party.


The contract shall then terminate:


in the case of an employee whose employment has lasted less than six months, at the end of the second week following the serving of notice to the other party;


in the case of an employee whose employment has lasted for six months or more but for less than one-and-a-half years, at the end of the fourth week following the serving of notice to the other party;


in the case of an employee whose employment has lasted for one-and-a-half years or more but for less than three years, at the end of the sixth week following the serving of notice to the other party;


in the case of an employee whose employment has lasted for more than three years, at the end of the eighth week following the serving of notice to the other party.

These are minimum periods and may be increased by contracts between the parties.


The party who does not abide by the rule to serve notice shall pay compensation covering the wages which correspond to the term of notice.


The employer may terminate the employment contract by paying in advance the wages corresponding to the term of notice.


The employer's non-observance of the rule of giving notice or his terminating the employment contract by paying in advance the wages corresponding to the term of notice shall not preclude the application of Articles 18,19,20 and 21 of this Act. In cases where employment contracts of employees who fall outside the scope of Articles 18,19,20 and 21 of this Act by definition of subsection I of Article 18 have been ended by the abusive exercise of the right to terminate, the employee shall be paid compensation amounting to three times the wages for the term of notice. If the rule to give notice has not been observed either, the employee must be paid an additional compensation (notice pay) in accordance with subsection 4 above.


In the computation of compensations to be paid in accordance with this Article as well as the advance notice pay, all the monetary benefits plus other benefits which can be measured in monetary terms emanating from the contract and from the law shall be taken into consideration in addition to the wage defined in subsection 1 of Article 32.



Justification of termination with a valid reason:


Article 18. The employer, who terminates the contract of an employee engaged for an indefinite period, who is employed in an establishment with thirty or more workers and who meets a minimum seniority of six months, must depend on a valid reason for such termination connected with the capacity or conduct of the employee or based on the operational requirements of the establishment or service.


In the computation of the six-months' seniority, time periods enumerated in Article 66 shall be taken into account.


The following, inter alia, shall not constitute a valid reason for termination:


union membership or participation in union activities outside working hours or, with the consent of the employer, within working hours;


acting or having acted in the capacity of, or seeking office as, a union representative;


the filing of a complaint or participation in proceedings against an employer involving alleged violations of laws or regulations or recourse to competent administrative or judicial authorities;


race, colour, sex, marital status, family responsibilities, pregnancy, religion, political opinion, national extraction or social origin;


absence from work during maternity leave when female workers must not be engaged in work, as foreseen in Article 74;


temporary absence from work during the waiting period due to illness or accident foreseen in Article 25 of the Labour Act, subsection I (b).

The "six month" minimum seniority (length of service) of the employee shall be calculated on the basis of the sum of his employment periods in one or different establishments of the same employer. In the event the employer has more than one establishment in the same branch of activity, the number of employees shall be determined on the basis of the total number of employees in these establishments.


This Article and Articles 19 and 21 and the last subsection of Article 25 shall not be applicable to the employer's representative and his assistants authorised to manage the entire enterprise as well as the employers' representative managing the entire establishment but who is also authorised to recruit and to terminate employees.



Procedure in termination:


Article 19. The notice of termination shall be given by the employer in written from involving the reason for termination which must be specified in clear and precise terms.


The employment of an employee engaged under a contract with an open-ended term shall not be terminated for reasons related to the worker's conduct or performance before he is provided an opportunity to defend himself against the allegations made. The employer's right to break the employment contract in accordance with Article 25/II of the Labour Act (for serious misconduct or malicious or immoral behaviour of the employee) is, however, reserved.



Procedure of appeal against termination:


Article 20. The employee who alleges that no reason was given for the termination of his employment contract or who considers that the reasons shown were not valid to justify the termination shall be entitled to lodge an appeal against that termination with the labour court within one month of receiving the notice of termination. If there is an arbitration clause in the collective agreement or if the parties so agree, the dispute may also be referred to private arbitration within the same period of time.


The burden of proving that the termination was based on a valid reason shall rest on the employer. However, the burden of proof shall be on the employee if he claims that the termination was based on a reason different from the one presented by the employer.


The court must apply fast-hearing procedures and conclude the case within two months. In the case the decision is appealed, the Court of Cassation must issue its definitive verdict within one month.



Consequences of termination without a valid reason:


Article 21. If the court or the arbitrator concludes that the termination is unjustified because no valid reason has been given or the alleged reason is invalid, the employer must re-engage the employee in work within one month. If, upon the application of the employee, the employer does not re-engage him in work, compensation to be not less than the employee's four months' wages and not more than his eight months' wages shall be paid to him by the employer.


In its verdict ruling the termination invalid, the court shall also designate the amount of compensation to be paid to the employee in case he is not re-engaged in work.


The employee shall be paid up to four months' total of his wages and other entitlements for the time he is not re-engaged in work until the finalization of the court's verdict. If advance notice pay or severance pay has already been paid to the reinstated employee, it shall be deducted from the compensation computed in accordance with the above-stated subsections. If term of notice has not been given nor advance notice pay paid, the wages corresponding to term of notice shall also be paid to the employee not re-engaged in work.


For re-engagement in work, the employee must make an application to the employer within ten working days of the date on which the finalized court verdict was communicated to him. If the employee does not apply within the said period of time, termination shall be deemed valid, in which case the employer shall be held liable only for the legal consequences of that termination.


The provisions of subsections 1,2 and 3 of this Article shall not be altered by any agreement whatsoever; any agreement provisions to the contrary shall be deemed null and void.



Change in working conditions and termination of the contract:


Article 22. Any change by the employer in working conditions based on the employment contract, on the rules of work which are annexed to the contract, and on similar sources or workplace practices, may be made only after a written notice is served by him to the employee. Changes that are not in conformity with this procedure and not accepted by the employee in written form within six working days shall not bind the employee. If the employee does not accept the offer for change within this period, the employer may terminate the employment contract by respecting the term of notice, provided that he indicates in written form that the proposed change is based on a valid reason or there is another valid reason for termination. In this case the employee may file suit according to the provisions of Articles 17 and 21.


By mutual agreement the parties may always change working conditions. Change in working conditions may not be made retroactive.



Responsibility of the new employer:


Article 23. If the employee working for an employer under a contract with a definite or indefinite period quits employment before the expiration of the fixed term or without respecting the notice period and accepts employment under another employer, the new employer is also liable jointly with the employee, in addition to the employee's liability for ending the contract in this fashion, in the following cases;


if the new employer has caused the employee to act in this manner,


if the new employer has engaged the employee in work even though he was aware of the employee's action, or


if the new employer has retained the employee in his service after becoming aware of the latter's action.


Employee's right to break the contract for just cause:


Article 24. The employee is entitled to break the contract, whether for a definite or an indefinite period, before its expiry or without having to observe the specified notice periods, in the following cases.


For reasons of health


If the performance of the work stipulated in the contract endangers the employee's health or life for a reason which it was impossible to foresee at the time the contract was concluded;


If the employer, his representative or another employee who is constantly near the employee and with whom he is in direct contact is suffering from an infecting disease or from a disease incompatible with the performance of his duties.


For immoral, dishonourable or malicious conduct or other similar behaviour


If, when the contract was concluded, the employer misled the employee by stating the conditions of work incorrectly or by giving him false information or by making false statements concerning any essential point of the contract;


If the employer is guilty of any speech or action constituting an offence against the honour or reputation of the employee or a member of the employee's family, or if he harasses the employee sexually;


If the employer assaults or threatens the employee or a member of his family to commit an illegal action, or commits an offence against the employee or a member of his family which is punishable with imprisonment, or levels serious and groundless accusations against the employee in matters affecting his honour;


If, in cases where the employee was sexually harassed by another employee or by third persons in the establishment, adequate measures were not taken although the employer was informed of such conduct;


If the employer fails to make out a wages account or to pay wages in conformity with the Labour Act and the terms of the contract;


If, in cases where wages have been fixed at a piece or task rate, the employer assigns the employee fewer pieces or a smaller task than was stipulated and fails to make good this deficit by assigning him extra work on another day, or if he fails to implement the conditions of employment.


Force majeure

Force majeure necessitating the suspension of work for more than one week in the establishment where the employee is working.


The breaking of the employment contract by the initiative of the employer (summary termination):


Article 25. The employer may break the contract, whether for a definite or indefinite period, before its expiry or without having to comply with the prescribed notice periods, in the following cases:


For reasons of health


If the employee has contracted a disease or suffered an injury owing to his own deliberate act, loose living or drunkenness, and as a result is absent for three successive days or for more than five working days in any month.


If the Health Committee has determined that the suffering is incurable and incompatible with the performance of the employee's duties. In cases of illness or accident which are not attributable to the employee's fault and which are due to reasons outside those set forth in (a) above and in cases of pregnancy or confinement, the employer is entitled to terminate the contract if recovery from the illness or injury continues for more than six weeks beyond the notice periods set forth in article 17. In cases of pregnancy or confinement, the period mentioned above shall begin at the end of the period stipulated in Article 74. No wages are to be paid for the period during which the employee fails to report to work due to the suspension of his (her) contract.


For immoral, dishonourable or malicious conduct or other similar behaviour


If, when the contract was concluded, the employee misled the employer by falsely claiming to possess qualifications or to satisfy requirements which constitute an essential feature of the contract, or by giving false information or making false statements;


If the employee is guilty of any speech or action constituting an offence against the honour or dignity of the employer or a member of his family, or levels groundless accusations against the employer in matters affecting the latter's honour or dignity;


If the employee sexually harasses another employee of the employer;


If the employee assaults or threatens the employer, a member of his family or a fellow employee, or if he violates the provisions of Article 84;


If the employee commits a dishonest act against the employer, such as a breach of trust, theft or disclosure of the employer's trade secrets.;


If the employee commits an offence on the premises of the undertaking which is punishable with seven days' or more imprisonment without probation;


If, without the employer's permission or a good reason, the employee is absent from work for two consecutive days, or twice in one month on the working day following a rest day or on three working days in any month;


If the employee refuses, after being warned, to perform his duties;


If either wilfully or through gross negligence the employee imperils safety or damages machinery, equipment or other articles or materials in his care, whether these are the employer's property or not, and the damage cannot be offset by his thirty days' pay.


Force majeure:

Force majeure preventing the employee from performing his duties for more than one week.


If due to the employee's being taken into custody or due to his arrest, his absence from work exceeds the notice period indicated in Article 17.

The employee may file a lawsuit according to Articles 18,20 and 21 by claiming that the termination was not in conformity with the subsections cited above.



The prescribed period within which the right to summary termination may be exercised:


Article 26. The right to break the employment contract for the immoral, dishonourable or malicious behaviour of the other party may not be exercised after six working days of knowing the facts, and in any event after one year following the commission of the act, has elapsed. The "one year" statutory limitation shall not be applicable, however, if the employee has extracted material gains from the act concerned.


The employee or employer who has terminated the contract for any of the reasons mentioned above within the period indicated in the above subsection is entitled to claim compensation from the other party.



Permission to seek new employment:


Article 27. During the term of notice the employer must grant the employee the permission to seek new employment within working hours without any deduction from his wage. The time devoted to this purpose should not be less than two hours daily and if the employee so requests such hours may be added together and taken at one time. But if the employee wishes to take these hours at one time, he must do so on the days immediately preceding the day on which his employment ceases and must inform the employer in advance.


If the employer does not grant the permission to seek new employment or allows less time than that stipulated in this Article, he must pay the employee the wages corresponding to the time to which he was entitled.


If the employer makes the employee work during the time to be allowed for seeking new employment, he must compensate the employee twice the amount of wages he is entitled to even for no work during the time which should be allowed for seeking new employment.



Certificate of employment:


Article 28. The employer must furnish the employee leaving employment with a certificate stating the nature and duration of employment.


The employee who suffers a loss or the new employer who has recruited him may claim compensation from the previous employer for the latter's failure to furnish the certificate on due time or for the incorrect information contained in the certificate.


Such certificate is exempt from taxes and fees.



Collective dismissal:


Article 29. When the employer contemplates collective terminations for reasons of an economic, technological, structural or similar nature necessitated by the requirements of the enterprise, the establishment or activity, he shall provide the union shop-stewards, the relevant regional directorate of labour and the Public Employment Office with written information at least 30 days prior to the intended lay-off.


A collective dismissal occurs when,


in establishments employing between 20 and 100 employees, a minimum of 10 employees; and


in establishments employing between 101 and 300 employees, a minimum of 10 percent of employees; and


in establishments employing 301 and more workers, a minimum of 30 employees, are to be terminated in accordance with Article 17 on the same date or at different dates within one month.

The said written communication shall include the reason for the contemplated layoff, the number and groups to be affected by the lay-off as well as the length of time the procedure of terminations is likely to take.


Consultations with union shop-stewards to take place after the said notification shall deal with measures to be taken to avert or to reduce the terminations as well as measures to mitigate or minimize their adverse effects on the workers concerned. A document showing that the said consultations have been held shall be drawn up at the end of the meeting.


Notices of termination shall take effect 30 days after the notification of the regional directorate of labour concerning the intended lay-offs.


In the event of closing the entire establishment which involves a definite and permanent stoppage of activities, the employer shall notify, at least 30 days prior to the intended closure, only the regional directorate of labour and the Public Employment Office and shall post the relevant announcement at the establishment.


If in seasonal and campaign work layoffs are carried out in conjunction with the nature of such work, provisions on collective dismissals shall not apply.


The employer shall not apply the provisions on collective dismissal to evade and prevent the application of Articles 18,19,20 and 21; otherwise the employee may file suit according to these articles.



The requirement to employ disabled persons, ex-convicts and victims of terror:


Article 30. In establishments employing fifty or more employees, employers shall employ disabled persons, ex-convicts, and victims of terror - who must be engaged in work in accordance with the annex Article (B) of Act No. 3713 on the Struggle Against Terrorism - , and assign them to jobs consistent with their occupational skills and physical and mental capacities; the ratios to be employed in each category shall be determined by the Council of Ministers in a manner to go into effect at the beginning of January of each year. The total ratio of employees to be employed within the scope of this article is six percent. But the ratio of the disabled shall not be less than half of the total ratio. For employers who have more than one establishment within the boundaries of a province, the number that the employer must employ shall be computed according to the total number of employees.


In determining the number of employees to be employed within the scope of this provision, employees with open-ended and fixed term contracts shall be considered together. Taking their working time into consideration, part-time employees shall be converted into full-time numbers.


In the computation of the ratios, fractions up to one half are to be omitted; those above half shall be elevated to one.


Priority in hiring these categories must be given to those who have become disabled or ex-convicts or victims of terror during their previous employment in the establishment.


Employers shall recruit such employees through the Public Employment Organisation of Turkey (Türkiye İş Kurumu).


The nature of employees who shall be employed in the meaning of this clause, the types of jobs in which they may be engaged, the special conditions that will apply to them and their occupational orientation and how they shall be recruited professionally is to be indicated in a regulation which will be issued jointly by the Ministry of Justice and the Ministry of Labour and Social Security.


No disabled person shall be employed in any underground and underwater work, and employees engaged in underground and underwater works shall not be taken into consideration in determining the number of employees according to the provisions mentioned above.


The employer must give priority to applicants who have left his establishment because of disablement but who have later recovered should they wish to resume their old jobs, either immediately if vacant positions are available, or if not, when vacancies occur in their previous jobs or in other corresponding jobs, subject to the prevailing conditions of employment. Should the employer fail to respect his obligation to conclude the said employment contract despite the existence of the above – mentioned requirements, he shall pay his ex-employee making the application a compensation equal to his six months' wages.


The employment of ex-convicts shall be without prejudice to the provisions concerning services related to public security.


Concerning employers who employ disabled persons, ex-convicts or victims of terror above the quotas designated by the Council of Ministers, or who employ these categories although they are not obligated to do so, or employers employing disabled persons who have lost more than 80 percent of their working capacity, and for each disabled person thus employed; the employer shall pay only fifty percent of the employer's share of contributions according to Act No. 506 on Social Insurance, and the Treasury shall pay the remaining fifty percent.


In the event of violations of this clause the fines which will be collected according to Article 101 shall be appropriated as income to a special account of the Turkish Employment Organisation (İş-Kur) which will be opened by the Ministry of Finance. The money thus collected in this account shall be transferred to the Turkish Employment Organisation to be spent for the vocational training and rehabilitation of the disabled or for promoting self-employment businesses or similar projects for such people.


The subject matter and amounts of such appropriations shall be decided, under the coordination of the general Directorate of the Turkish Employment Organisation, by a committee to be composed of a representative from the general Directorate of Labour of the Ministry of Labour and Social Security, General Directorate of Occupational Health and Safety, Directorate of the Administration for the Disabled, General Directorate of Penal and Prison Institutions of the Ministry of Justice, the Confederation of the Disabled of Turkey and top level organisations of labour and employers with the largest membership. The working methods of the committee will be determined by a regulation to be issued by the Ministry of Labour and Social Security.



Employment in relation to military and statutory duty:


Article 31. If an employee is recalled to military services to take part in maneuvers or for any other reasons, or if he leaves his employment to perform statutory labour service, his employment contract shall be deemed to have ended after two months have elapsed from the date of his departure.


To be entitled, the employee must have been employed for a minimum of one year.


Employees who have been employed for more than one year are allowed two additional days for each year of service, provided that the total period of absence must not exceed 90 days.


The employee is not entitled to wages within the period which must elapse in order for his employment contract to be deemed terminated, without prejudice to the provisions of special legislation on this matter. Even in cases where notice has been given by either party for any other reason based on law, the notice period for termination designated by law shall begin to be operative after the lapse of the time indicated. The provisions of this Article shall not apply if the employment contract is a fixed- term one and if it expires within the period indicated above.


If employees who leave their employment to carry out any military or statutory duties apply to their employer within two months of the completion of such duties, the employer shall re-hire them by giving priority over other applicants, when there is a vacancy equal or similar to their previous jobs, under the prevailing conditions; if there is no vacancy, the employer shall re-hire them to the first job which will become vacant. If the employer does not fulfill his obligation to conclude the employment contract despite the presence of the required conditions, he shall pay the ex-employee applying for re-employment compensation equal to three-months' wages.



THIRD CHAPTER


Wages




The wage and its remuneration:


Article 32. Wage is, in general terms, the amount of money to be paid in cash by an employer or by a third party to a person in return for work performed by him.


As a rule the wage shall be paid in Turkish money (legal tender) at the establishment or shall be deposited into a specially opened bank account. If the wage has been decided in terms of a foreign currency, it may be paid in Turkish money according to the currency rate on the date of payment.


Wage payment must not be made in bonds, coupons or another paper claimed to represent the national currency valid in the country or by any other means whatsoever.


Wage may be paid on a monthly basis at the latest. The time of remuneration may be reduced down to one week by employment contract or by collective agreement.


Upon the expiration of the employment contract, employee's wage claims as well as all the benefits based on the employment contract and law must be paid in full.


No wage payments may be made to employees in bars and similar entertainment areas where alcoholic beverages are served as well as in retail stores, with the exception of employees working in such establishments.


Statutory limitation on wage claims is five years.



Insolvency of the employer:


Article 33. In case of the employer's inability to pay as evidenced by the declaration of a concord by him or the issuance of a certificate attesting to his insolvency or bankruptcy, a separate Wages Guarantee Fund shall be established within the Unemployment Insurance Fund with a view to meet the employees' wage claims for the last three months accruing from the employment relationship.


The Wages Guarantee Fund shall comprise one percent of the total unemployment insurance contributions paid by employers. The formation and working methods of the Wages Guarantee Fund shall be laid down in a regulation to be issued by the Ministry of Labour and Social Security.



Non-payment of wages on the day due:


Article 34. The employee whose wage has not been paid within twenty days of the day it was due, except for force majeure, may refrain from fulfilling his obligation to work. Even if refraining from work by employees based on their personal decisions takes on the character of a concerted action in quantifiable terms, it shall not qualify as a strike. The highest interest rate charged to bank deposits shall be levied on wage debts not paid on the day they were due.


Employment contracts of such employees shall not be terminated solely because they have refrained from working for this reason; no replacements shall be hired, nor may such work be performed by others.



Protected portion of the wage:


Article 35. Not more than one - fourth of the wages in a month may be seized, transferred or assigned to a third party, provided that any maintenance allowances awarded by a judge to members of the employee's family whom he is required to support shall not be included in this sum. This provision shall apply without prejudice to the rights of persons entitled to alimony.



The obligation of public agencies to deduct wage claims from contractors' entitlements:


Article 36. Public agencies administered by the general and annexed budgets, local governments, state economic enterprises, and banks and organisations established under special laws must ensure, before making any progress payment to a contractor carrying out construction work such as construction of buildings, bridges, railways and roads of any kind as well as repair work, that all the employees hired for such work have been paid their wages adequately by the contractor or a subcontractor, and if there are any employees who have not yet been paid, as determined by the payrolls to be produced by the contractor or subcontractor on demand, must deduct the appropriate amounts from the contractor's progress payment and pay the employees' wages that are due.


Before any progress payment is made to a contractor, a notice by the agency concerned must be prominently displayed in written form in places where the employees gather together. The agency concerned is not liable, however, for any wage claims exceeding the amount of three months' earnings to which the employee is entitled.


Any transaction involving a transfer, takeover, sequestration or enforced sale on the guarantees and entitlements accorded by the said contractors to the employers (agencies) concerned may be implemented only on the sum obtained after apportioning the wage claims of the employees who have been employed in such ventures.


Any sequestration and enforced sale on the equipment, materials, raw, semi-finished and finished products and other assets in the establishment of an employer for his debts to a third party may be implemented on the sum obtained only after apportioning the wage claims of the employees for the three months' period preceding the date on which the decision for forced sale was taken.


All employers responsible within the meaning of subsection 6 of Article 2 are authorised as well to use the powers given to public legal bodies and other organisations defined in this Article.


Wage account slip:


Article 37. In wage payments which the employer makes at the establishment or through a bank, he must deliver to the employee a signed slip showing the wage account and bearing the special mark of the establishment.


This slip must indicate clearly the date of payment, the pay period, all supplements to basic wages such as overtime earnings, payments for weekly rest days and national or general holidays, and all deductions such as taxes, insurance contributions, reimbursement of advance payments, payments for alimony and sequestrated deductions.


These transactions are exempt from all stamp taxes and fees.



Deductions of fines from wages:


Article 38. No employer may impose a fine on an employee's wage for reasons other than those indicated in the collective agreement or the employment contract. The employee must be notified at once, together with the reason, of any wage deductions as fines.


Deductions made in this way must not exceed three days' wages in any one month, or in the case of piece work or amount of work to be done , the wages earned by the employee in two days.


These deductions shall be credited within one month to the account of the Ministry of Labour and Social Security in a bank established in Turkey and must be designated by the Ministry for use in the training of and social services for employees. Every employer must maintain a separate account in his establishment showing such deductions. A committee presided over by the Minister of Labour and Social Security and including employees' representatives shall decide where and in what amounts the fines thus collected are to be used. Rules for the establishment and working methods of this committee shall be indicated in a regulation to be issued.



Minimum wage:


Article 39. With the object of regulating the economic and social conditions of all employees working under an employment contract, either covered or uncovered by this Act, the minimum limits of wages shall be determined every two years at the latest by the Ministry of Labour and Social Security through the Minimum Wage Fixing Board.


The Minimum Wage Fixing Board, presided over by one of its members to be designated by the Ministry of Labour and Social Security, shall be composed of the General Director of Labour or his deputy, the General Director of Occupational Health and Safety or his deputy, the chairman of the Economic Statistics Institute of the State Institute for Statistics or his deputy, representative of the Under- Secretariat of Treasury, the head of the relevant department of the State Planning Organisation or his representative, five employees' representatives from different branches of activity selected by the highest – ranking labour organisation representing the majority of employees and five employers' representatives selected by the employer organisation representing the majority of employers. The Minimum Wage Fixing Board meets with at least ten members present. The Board takes its decisions by majority vote. In the event of a tie, the chairman has a casting vote.


Decisions of the Board are final. Decisions become effective upon their publication in the Official Gazette.


The meeting and working methods, and rules that shall apply to fixing the minimum wage as well as the honorariums to be paid to the chairman, members and the reporter of the Board shall be set out in a regulation to be issued jointly by the Ministry of Finance and the Ministry of Labour and Social Security.


Secretarial services of the Minimum Wage Fixing Board shall be handled by the Ministry of Labour and Social Security.



Half wage:


Article 40. The employee who can not work or who is not engaged in work due to the reasons set forth in subsections III of Articles 24 and 25 shall be paid, up to one week, half his wages for each day.



Overtime wage:


Article 41. Overtime work may be performed for purposes such as the country's interest, the nature of the operation or the need to increase output. Overtime work is work which, under conditions specified in this Act, exceeds forty-five hours a week. In cases where the principle of balancing is applied in accordance with Article 63, work which exceeds a total of forty-five hours a week shall not be deemed overtime work, provided the average working time of the employee does not exceed the normal weekly working time.


Wages for each hour of overtime shall be remunerated at one and a half times the normal hourly rate.


In cases where the weekly working time has been set by contract at less than forty-five hours, work that exceeds the average weekly working time done in conduction with the principles stated above and which may last only up to forty-five hours weekly is deemed to be work at extra hours. In work at extra hours, each extra hour shall be remunerated at one and a quarter times the normal hourly rate.


If the employee who has worked overtime or at extra hours so wishes, rather than receiving overtime pay he may use, as free time, one-hour and thirty minutes for each hour worked overtime and one hour and fifteen minutes for each extra hour worked.


The employee shall use the free time to which he is entitled within six months, within his working time and without any deduction in his wages.


No overtime work shall be done in work of short or limited duration due to health reasons mentioned in the last subsection of Article 63 as well as in night work stated in Article 69.


The employee's consent shall be required for overtime work.


Total overtime work shall not be more than two hundred seventy hours in a year.


Overtime work and its methods shall be indicated in a regulation to be issued.



Compulsory overtime work:


Article 42. All or some of the employees may be required to work overtime either in the case of a breakdown, whether actual or threatened, or in the case of urgent work to be performed on machinery, tools or equipment or in the case of force majeure, provided that it shall not exceed the time necessary to enable the normal operating of the establishment. In these cases employees must be allowed an adequate time for rest.


In any case the first, second and third subsections of Article 41 shall apply to compulsory overtime work.



Overtime work in emergency situations.


Article 43. During periods of mobilization, the Council of Ministers may, if it deems it necessary and limited only by that period, extend the daily hours of work up to the maximum of which the employees working in establishments serving the needs of national defense are capable, according to the nature of the operations and urgency of the needs in question.


For overtime pay of employees engaged in such work, subsections 1,2 and 3 of Article 41 shall apply.



Work on the national day and public holidays:


Article 44. The issue of whether or not work will be done on the national day and public holidays will be decided by the collective agreement or by employment contracts. The employee's consent is required if there is no provision in the collective agreement or in employment contracts.


Wages for such days shall be paid in accordance with Article 47.



Protected Rights:


Article 45. No provisions may be inserted into collective agreements or employment contracts contrary to the rights granted to employees on the weekly rest day, national and public holidays, paid vacations and to the rights of employees working under a percentage system recognised to them by this Act.


Any vested rights based on law, collective agreement, employment contract or custom which provide employees with more favourable rights and benefits shall be protected.



Remuneration for weekly rest day:


Article 46. The employees working in establishments covered by this Act shall be allowed to take a rest for a minimum of twenty-four hours (weekly rest day) without interruption within a seven-day time period, provided they have worked on the days preceding the weekly rest day as indicated in Article 63.


For the unworked rest day, the employer shall pay the employee's daily wage, without any work obligation in return.


For entitlement, the following shall be reckoned as days worked;


time periods deemed to be part of the working time although no work has been done, and any periods of holidays, with or without pay, either statutory or based on contract,


up to three days' leave of absence in the event of the employee's marriage and up to three days' leave in the event of the death of the employee's mother, father, spouse, brother or sister, and child,


any leave granted by the employer and any sick or convalescent leave based on a medical report, subject to a maximum of one week,

If the employer, without being obliged to do so by force majeure or economic reasons, suspends work on one or more days of the week, these days on which no work has been done shall be reckoned as days worked in order to be entitled to paid weekly rest day. If work is suspended in an establishment for more than one week on account of force majeure, the wages payable to employees for days not worked due to force majeure in accordance with subsections III of Articles 25 and 26 shall be paid also for the weekly rest day.


In establishments where a percentage wage system is in effect, the wage for the weekly rest day shall be paid to the employee by the employer.



Remuneration for holidays:


Article 47. Employees in establishments covered by this Act shall be paid a full day's wages for the national and public holidays on which they have not worked; if they work instead of observing the holiday, they shall be paid an additional full day's wages for each day worked.


In establishments where a percentage wage system is in effect, the wage for the national and public holidays shall be paid to the employee by the employer.



Temporary disability:


Article 48. Where employees must be paid temporary disability benefits, pay for national holidays, public holidays and weekly rest days which coincide with the duration of temporary disability shall be remunerated, in proportion to the criterion of temporary disability, by the social security institutions or funds making such payments.


The disability compensation paid by the Social Insurance Organisation due to sickness shall be deducted from the wage paid to the salaried employee remunerated on a monthly basis.



Holiday pay in respect of the remuneration method:


Article 49. Holiday pay of an employee is the daily amount in proportion to the total sum of the days he has worked.


Holiday pay of an employee working at a piece or job rate or on a percentage basis shall be calculated by dividing his total earnings within a pay period by the number of days he has worked during that period.


The holiday pay of an employee working on an hourly basis is 7.5 times his hourly rate.


Article 46, 47 and subsection I of Article 48 shall not be applicable to salaried employees who are remunerated monthly in full despite the days they are absent from work due to illness, leave of absence or for any reason. If they have worked on national and public holidays, however, they shall be paid an additional one day's wage for each such holiday on which they have worked.



Payments not included in holiday pay:


Article 50. The following payments shall not be considered for the purpose of calculating payments in respect of national or public holidays or weekly rest days: overtime and incentive premiums, the wages paid to permanent employees when they are employed outside normal working hours in preparatory, complementary or cleaning operations; and fringe benefits.



Percentage wages:


Article 51. In hotels, restaurants, places of entertainment and quick-lunch stands serving alcoholic beverages and similar workplaces where a percentage wage system is used, the employer shall pay all the employees in the establishment such sums of money, without deduction, as are obtained by the employer's adding to the customer's bill a percentage service charge and any amounts of money voluntarily left by customers with the employer or collected under the employer's direction.


The employer or his representative is under the obligation to produce documentary evidence that, upon receiving these sums of money, he has apportioned the exact amounts to his employees without deduction.


Provisions shall be made in a regulation, to be prepared by the Ministry of Labour and Social Security for the principles and rates to be observed in the apportionment of sums collected by means of percentage additions among the employees according to the nature of the jobs performed.



Documenting percentage payments:


Article 52. In establishments where the percentage wage method is practised, the employer is under the obligation to submit a document showing the general total of each account slip to an employee representative elected by the employees from amongst themselves. The form and application methods of such documents shall be indicated in employment contracts or collective agreements.



Annual leave with pay and leave periods:


Article 53. Employees who have completed a minimum of one year of service in the establishment since their recruitment, including the trial period, shall be allowed to take annual leave with pay.


The right to annual leave with pay shall not be waived.


The provisions of this Act on annual leave with pay are not applicable to employees engaged in seasonal or other occupations which, owing to their nature, last less than one year.


The length of the employee's annual leave with pay shall not be less than;


fourteen days if his length of service is between one and five years, (five included),


twenty days if it is more than five and less than fifteen years,


twenty-six days if it is fifteen years and more (fifteen included).

For employees below the age of eighteen and above the age of fifty, the length of annual leave with pay must not be less than twenty days.


The length of annual leave with pay may be increased by employment contracts and collective agreements.



Entitlement to annual leave with pay and its application period


Article 54. In the computation of the length of service required to qualify for annual leave with pay, the total period during which the employee has been employed in one or more establishments belonging to the same employer shall be taken into consideration. Furthermore, any length of time spent by an employee in an establishment covered by this Act plus any length of time previously spent by the same employee in an establishment belonging to the same employer but not covered by this Act shall also be considered.


If within the one-year period the employee's work is interrupted for reasons other than those enumerated in Article 55, the expiry date of the one year of service period which must have elapsed for entitlement to annual leave with pay shall be shifted to the following year of service by adding additional time to compensate for the outstanding gaps caused by interruptions.


The length of the "one-year service" which must elapse for the employee's entitlement to his upcoming annual leave with pay shall commence from the day on which his entitlement to his previous annual leave became effective, to be computed towards the following year according to the subsection above and the provisions of Article 55.


The employee shall use his annual leave with pay computed for each year of service according to the subsections above and Article 55 within the following year of employment.


In computing the length of service for annual leave, account shall be taken of periods of employment in establishments belonging to the same ministry, establishments belonging to legal bodies attached to the same ministry, state economic enterprises, banks and organisations established by authorisation under special laws as well as the subordinate establishments of such banks and organizations.



Unworked periods treated as part of the one-year requirement to qualify for annual leave with pay:


Article 55. In determining the right to annual leave with pay the periods shown below shall be treated as having been worked;


Days on which the employee fails to report to work owing to an accident or illness (however, time which exceeds the period foreseen in subsection I (b) of Article 25 shall not be treated as worked);


Days on which the female employee is not permitted to work before and after her confinement, in accordance with Article 74;


Days on which the employee is unable to report to work through having been called up for military exercises or for the performance of a statutory obligation, other than compulsory military service, (up to a maximum of 90 days in a year);


Fifteen days of any period during which the employee has not worked because of the temporary but interrupted suspension of operations for longer than one week owing to force majeure, on condition that he has subsequently resumed work;


Periods reckoned as having been worked, envisaged in Article 66;


Weekly rest days and national and public holidays;


Half-days of leave granted in addition to Sundays to employees working in radiological clinics, in accordance with the regulation issued under Act No. 3153;


Days on which the employee is unable to report for work because of having to attend meetings of mediation and arbitration boards, acting as an employees' representative on such boards or before a labour court, serving as an employees' or union representative on boards, committees or meetings organised under the relevant legislation or attending conventions, conferences or committee meetings of international organisations dealing with labour matters;


Up to three days' leave on the occasion of the employee's marriage and up to two days' leave on the occasion of his parent's, spouse's, sister's or brother's or child's death;


Other leave granted by the employer;


Annual leave with pay granted to the employee in pursuance of the application this Act.


Implementing annual leave with pay:


Article 56. Annual leave with pay may not be divided by the employer.


This leave must be granted without interruption in conformity with the days indicated in Article 53.


However leave periods foreseen in article 53 may be divided, by mutual consent, into three parts at the maximum, provided that one of the parts shall not be less than ten days.


Other kinds of leave, with or without pay, granted by the employer during the year or taken by the employee as convalescent or sick leave must not be deducted from annual leave.


National holidays, weekly rest days and public holidays which coincide with the duration of annual leave may not be included in the annual leave period.


If the employee so requests, the employer must grant him up to four days' leave without pay in order to make good his round-trip travel time, on condition that he provides documentary evidence that he is spending his annual leave at a place other than that where the establishment is located. The employer must keep a roster showing the paid annual leaves of the employees working in his establishment.



Remuneration during annual leave:


Article 57. The employer must pay the employee using his annual leave the remuneration corresponding to his leave period either as a lump sum or as an advance payment prior to the beginning of the leave.


Provisions of Article 50 shall apply to the computation of this remuneration.


The annual leave remuneration of employees who are not paid daily, monthly or weekly but who are remunerated according to an indefinite period of time or amount of money, such as a piece-rate, commission, profit sharing or percentage, must be calculated on their average daily earnings by dividing the total wages earned during the previous year by the number of days actually worked during that year.


If the employee has been granted a raise in pay within the previous year, the annual leave remuneration shall be computed by dividing the total wages earned between the date of the month in which the employee uses his leave and the date when his pay was raised by the number of days worked within that period.


For employees working on a percentage basis, remuneration for annual leave must be paid by the employer in addition to any amount of money derived from current percentage earnings.


Wages for weekly rest days, national and public holidays which coincide with annual leave shall be paid in addition to the annual leave pay.



Restriction on working during annual leave:


Article 58. If the employee is found to have accepted gainful employment during his annual leave, he may be asked by the employer to reimburse the annual leave remuneration already paid to him.



Annual leave pay upon the termination of the contract:


Article 59. Any annual leave remuneration due to but not yet drawn by an employee must be paid to him or to other persons entitled on his behalf, upon the termination of his employment contract for any reason, at the wage rate prevailing on the date of termination.


Statutory limitations on such wages which have become due shall begin as of the date of the termination of the contract.


Where the employment contract has been terminated by the employer, the terms of notice prescribed in Article 17 and the leave of absence to be granted according to Article 27 for seeking new employment must not overlap with the annual leave period.



Regulations concerning annual leave with pay


Article 60. A regulation indicating the methods and conditions applicable to annual leave with pay, the periods within the year during which leaves will be made available according to the nature of employment, the persons authorised to decide and the order to be observed in exercising the right to leaves, the measures to be taken by the employer in order to implement annual leave in ways useful for employees as well as the form of registers to be kept by the employer shall be issued by the Ministry of Labour and Social Security.



Social insurance contributions:


Article 61. With the exception of contributions for insurance against work accidents and occupational diseases, social insurance contributions to be levied on wages paid to the insured during annual leave shall continue to be paid by employees and employers in accordance with the principles set forth in the Social Insurance Act No 506.



Cases where reduction in wages is not permissible:


Article 62. No deductions of any kind may be made from an employee's wages on the grounds that the daily or weekly working hours applicable to any type of work have been reduced by law, or by reason of the fulfilment by the employer of any legal obligation or because of any mandatory obligation imposed on the employer by the provisions of this Act.



CHAPTER FOUR


Organization of work



Working time:


Article 63. In general terms, working time is forty-five hours maximum weekly. Unless the contrary has been decided, working time shall be divided equally by the days of the week worked at the establishment.


Provided that the parties have so agreed, working time may be divided by the days of the week worked in different forms on condition that the daily working time must not exceed eleven hours. In this case, within a time period of two months, the average weekly working time of the employee shall not exceed normal weekly working time.


This balancing (equalising) period may be increased up to four months by collective agreement.


The application methods of working time in line with the principles mentioned above shall be indicated in a regulation to be issued by the Ministry of Labour and Social Security.


The types of work where the daily working time must be seven and half hours maximum or less for health reasons shall be indicated in a regulation to be prepared jointly by the Ministry of Labour and Social Security and the Ministry of Health.



Compensatory work:


Article 64. In cases where time worked has been considerably lower than the normal working time or where operations are stopped entirely for reasons of suspending work due to force majeure or on the days before or after the national and public holidays or where the employee is granted time off upon his request, the employer may call upon compensatory work within two months in order to compensate for the time lost due to unworked periods. Such work shall not be considered overtime work or work at extra hours.


Compensatory work shall not exceed three hours daily, and must not exceed the maximum daily working time in any case.


Compensatory work shall not be carried out on holidays.



Shorter working time and its pay:


Article 65. The employer who temporarily shortens the weekly working time in his establishment or who temporarily suspends work wholly or partially in his establishment due to a general economic crisis or force majeure must communicate this matter, along with the reasons, immediately to the Employment Organisation of Turkey and to the union signatory to the collective agreement if there is one. The acceptability of the request shall be decided by the Ministry of Labour and Social Security. The methods and principles of procedure shall be indicated in a regulation.


In cases where work is suspended or shorter working hours are applied at the establishment for at least four weeks due to the above-mentioned reasons, employees shall be paid benefits for shorter working time corresponding to the time not worked. Shorter working time shall not exceed the period during which force majeure was effective and in any case three months. In order to have the right to insurance benefit payments for working shorter, the employee must meet the conditions required for entitlement to unemployment benefits both in terms of his length of employment and the number of days for which unemployment insurance contributions should have been paid.


The daily amount of benefit payment for working shorter is the same as the unemployment benefit.


In case where work in the establishment is suspended temporarily wholly or partially due to force majeure , payment of unemployment benefits shall start after the lapse of the one-week period envisaged in subsection III of Article 24 and Article 40.


Within the period during which the employee receives benefits for working shorter, his contributions for illness and maternity insurance shall be transferred by the Unemployment Insurance Fund, at a two-thirds ratio, to the Social Insurance Organization. These contributions shall be computed at the lowest rate of earnings serving as a basis for fixing insurance contributions.


If the employee starts working again before exhausting the time during which he could avail himself of unemployment benefits and becomes unemployed again before the conditions for access to unemployment insurance foreseen by Act No. 4447 have been met, he shall keep having access to unemployment benefits, provided that the period for which he had received benefit payments for working shorter is deducted, until the expiry of the time limit for receiving unemployment benefit to which he was entitled previously.


Payments for temporary disability which must be defrayed within the period during which benefits for working shorter are paid shall not be more than the amount of the benefit for working shorter. The illness and maternity contributions foreseen in this Article shall not be paid within the period during which temporary disability benefits are paid.



Time periods reckoned as part of the statutory hours of work:


the time required for employees employed in mines, stone quarries or any other underground or underwater work to descend into the pit or workings or to the actual workplace and to return there from to the surface


travelling time, if the employee is sent by the employer to a place outside the establishment,


the time during which the employee has no work to perform pending the arrival of new work but remains at the employer's disposal,


the time during which the employee who ought to be performing work within the scope of his duties in the establishment is sent on an errand for his employer or is employed by him in his household or office, instead of performing his own duties,


the time allowed to a female employee who is a nursing mother to enable her to feed her child,


the time necessary for the normal and regular transportation of groups of employees engaged in the construction, maintenance, repair and alteration of railways, roads and bridges to and from a workplace at a distance from their place of residence.

Time for transportation to and from the establishment which is not a requirement of the activity but is provided by the employer solely as a form of amenity shall not be regarded as part of the statutory working time.



The beginning and ending of the daily working time:


Article 67. The beginning and ending of the daily working time and rest breaks shall be announced to workers at the establishment.


Depending on the nature of activity, the beginning and ending times of work may be arranged differently for employees.



Rest breaks:


Article 68. Employees shall be allowed a rest break approximately in the middle of the working day fixed with due regard to the customs of the area and to the requirements of the work in the following manner;


fifteen minutes, when the work lasts four hours or less,


half an hour, when the work lasts longer than four hours and up to seven and a half hours (seven and a half included),


one hour, when the work lasts more than seven and a half hours.


These are minimum durations and the full period must be allowed at each break.


These break periods may, however, be split up by contracts where the climate, season, local custom or nature of the work so requires.


Breaks may be taken at the same or varying times by the employees at the establishment.


The breaks shall not be reckoned as part of the working time.



Night hours and night work:


Article 69. For the purposes of working life, "night" means the part of the day beginning not later than 20.000 hours and ending not earlier than 6.00 hours, and lasting not longer than 11 hours in any case.


According to the nature and requirements of certain activities or regional characteristics in the country, regulations may be issued with a view to move back the beginning of night work to an earlier time or, in determining the methods of implementing the provisions of the first subsection, to rearrange summer and winter hours or to fix the beginning and ending of daily working time, or to apply payment of extra wages to certain night work, or to prohibit night work altogether in establishments where there is no economic necessity for night work.


Night work for employees must not exceed seven and a half hours.


Suitability of employees for night work shall be certified by a health report to be obtained before they begin work. Employees who are employed on night work shall be subjected by the employer to a periodic health examination at least once every two years. The costs of employees' health examinations shall be met by the employer.


The employer shall assign, to the extent possible, the employee who presents documentary evidence that his health has been impaired because of night work to a suitable job in the day shift.


The employer is under the obligation to submit to the relevant regional directorate of labour the list of employees who shall be employed on night shifts as well as a copy of the health reports issued before the said employees have begun work and then given periodically.


In establishments where operations are carried on day and night by alternating shifts of employees, the alternation of shifts must be so arranged that employees are engaged on night work for not more than one week and are then engaged on day work the following week. Alternation of work on night and day shifts may also be carried out on a two-week basis.


The employee whose shift will be changed must not be engaged on the other shift unless allowed a minimum rest break of eleven hours.



Preparatory, complementary and cleaning operations:


Article 70. The provisions on the organisation of work that shall not apply to employees who are engaged in preparatory, complementary and cleaning operations generally carried out at an establishment before and after normal working hours or to what extent, under which conditions and with what modifications they shall apply to such employees shall be indicated in a regulation to be issued by the Ministry of Labour and Social Security.



Working age and restrictions on the employment of children:


Article 71. Employment of children who have not completed the age of fifteen is prohibited. However, children who have completed the full age of fourteen and their primary education may be employed on light works that will not hinder their physical, mental and moral development, and for those who continue their education, in jobs that will not prevent their school attendance.


In the placement of children and young employees in jobs and in the types of work where they are employable, their security and health, physical, mental and psychological development as well as their personal suitability and capability shall be taken into consideration. The job the child performs must not bar him for attending school and from continuing his vocational training, nor impair his pursuance of class work on a regular basis.


The types of works where employment of children and young employees who have not completed the full age of eighteen is prohibited and the works where young employees who have not completed the age of eighteen may be permitted to work, as well as the light works and working conditions in which children who have completed the age of fourteen and their primary education may work shall be determined in a regulation of the Ministry of Labour and Social Security to be issued within six months.


The working time of children who have completed their basic education and yet who are no longer attending school shall not be more than seven hours daily and more than thirty-five hours weekly. However this working time may be increased up to forty hours weekly.


The working time of school attending children during the education period must fall outside their training hours and shall not be more than two hours daily and ten hours weekly. Their working time during the periods when schools are closed shall not exceed the hours foreseen in the first subsection above.



Restrictions on underground and underwater work:


Article 73. Boys under the age of eighteen and women irrespective of their age must not be employed on underground or underwater work like in mines, cable-laying and the construction of sewers and tunnels.



Restrictions on night work:


Article 73. Children and young employees under the age of eighteen must not be employed on industrial work during the night.


The principles and methods for employing women who have completed the age of eighteen on night shifts shall be indicated in a regulation to be prepared by the Ministry of Labour and Social Security upon receiving the opinion of the Ministry Health.



Work during maternity and nursing leave:


Article 74. In principle female employees must not be engaged in work for a total period of sixteen weeks, eight weeks before confinement and eight weeks after confinement. In case of multiple pregnancy, an extra two week period shall be added to the eight weeks before confinement during which female employees must not work. However, a female employee whose health condition is suitable as approved by a physician's certificate may work at the establishment if she so wishes up until the three weeks before delivery. In this case the time during which she has worked shall be added to the time period allowed to her after confinement.


The time periods mentioned above may be increased before and after confinement if deemed necessary in view of the female employee's health and the nature of her work. The increased time increments shall be indicated in the physician's report.


The female employee shall be granted leave with pay for periodic examinations during her pregnancy.


If deemed necessary in the physician's report, the pregnant employee may be assigned to lighter duties. In this case no reduction shall be made in her wage.


If the female employee so wishes, she shall be granted an unpaid leave of up to six months after the expiry of the sixteen weeks, or in the case multiple pregnancy, after the expiry of the eighteen weeks indicated above. This period shall not be considered in determining the employee's one year of service for entitlement to annual leave with pay.


Female employees shall be allowed a total of one and a half hour nursing leave in order to enable them to feed their children below the age of one. The employee shall decide herself at what times and in how many instalments she will use this leave. The length of the nursing leave shall be treated as part of the daily working time.



Personnel file of the employee:


Article 75. The employer shall arrange a personnel file for each employee working in his establishment. In addition to the information about the employee's identity, the employer is obliged to keep all the documents and records which he has to arrange in accordance with this Act and other legislation and to show them to authorised persons and authorities when requested.


The employer is under the obligation to use the information he has obtained about the employee in congruence with the principles of honesty and law and not to disclose the information for which the employee has a justifiable interest in keeping as a secret.



Regulations:


Article 76. In jobs and establishments where, due to their nature, the application of daily and weekly working times is not possible as foreseen in Article 63, procedures to provide for the implementation of working time in a manner not to exceed the legal daily working time and by allowing an equalisation (balancing) period of up to six months shall be indicated in the regulations to be issued by the Ministry of Labour and Social Security.


In works where, due to their nature, operations have to be carried on continuously by the disposal of successive or rotating shifts of employees, special principles and procedures concerning working time, weekly rest days, night work and mandatory rest breaks shall be indicated in regulations to be issued by the Ministry of Labour and Social Security.



FIFTH CHAPTER



Occupational health and safety obligations of employers and employees:


Article 77. With a view to ensure occupational health and safety in their establishments, employers shall take all the necessary measures and maintain all the needed means and tools in full; and employees are under the obligation to obey and observe all the measures taken in the field of occupational health and safety.


In order to ensure compliance with and supervision of the measures taken for occupational health and work safety at the establishment, the employer must inform the employees of the occupational risks and measures that must be taken against them as well as employees' legal rights and obligations and, in this connection, he must provide the employees with the necessary training on occupational health and safety.


The principles and methods of training shall be indicated in the regulation to be issued by the Ministry of Labour and Social Security.


Employers shall notify, in written form, any work accident and occupational disease which occurs in the establishment to the relevant regional directorate of labour within two working days at the latest.


The provisions contained in this chapter as well as in the bylaws and regulations related to occupational health and work safety shall also apply to the apprentices and trainees in the establishment.



Bylaws and regulations on occupational health and safety:


Article 78. The Ministry of Labour and Social Security, after taking the opinion of the Ministry of Health, shall issue bylaws and regulations, with a view to ensure the adoption of occupational health and safety measures in the establishments, the prevention of work accidents and occupational diseases which may arise from the use of machinery, equipment and tools as well as the arrangement of working conditions for persons who must be protected because of their age, sex and special circumstances.


Furthermore, a regulation to be prepared by the Ministry of Labour and Social Security, after taking the opinion of the Ministry of Health, shall indicate, in view of the number of employees, size, the nature and the precariousness and dangers posed by the operations, in which establishments covered by this Act an opening permit should be obtained from the Ministry of Labour and Social Security upon submitting to the relevant authorities of the Ministry operation plans before setting up the establishment as well as for which establishments an operations permit should be obtained from the same authority after the setting up of the establishment.



Suspending operations or closing the establishment:


Article 79. If any defects endangering the lives of employees are found to exist in the installations and arrangements, in the working methods and conditions or in the machinery and equipment, operations shall be stopped partly or completely or the establishment shall be closed until the danger is eliminated, following the decision to that effect taken by a five-member committee consisting of two labour inspectors authorised to carry out occupational health and safety inspections in establishments, an employee and an employer representative and the regional director of labour. The committee shall be presided over by the senior labour inspector.


The work and secretarial services of the committee shall be conducted by the regional directorate of labour.


The composition as well as the working methods and principles of the committee for military establishments and establishments producing materials for national defense shall be indicated in a regulation to be jointly prepared by the Ministry of National Defense and Ministry of Labour and Social Security .


The employer is entitled to lodge an appeal with the competent local labour court within six working days against the suspension or closing decision taken in view of this Article.


Appeal to the labour court shall not preclude the execution of the decision to suspend the operations or to close the establishment.


The court shall take up the appeal as a priority issue and issue its decision on the objection in six working days. Decisions of the court are final and binding.


Where an employee's age, sex or health is incompatible with his employment in the establishment, he shall not be permitted to work,.


The manners by which the installations and arrangements or machinery and equipment which pose danger for employees, as explained in the above subsections, are to be barred from operating and how they will be permitted to operate again as well as the closing and reopening of the establishment, the measures to be taken in urgent cases until a decision is taken to suspend the operations or to close the establishment, as well as the qualifications and election of the employee and employer representatives to function in the committee, and the working methods and principles of the said committee shall be indicated in a regulation to be prepared by the Ministry of Labour and Social Security .


The permission to set up and operate an establishment shall in no way preclude the application of the provisions foreseen in Article 78.


The employer shall pay his employees their wages or employ them on other jobs in accordance with their occupational skills or status, without any reduction in wages, if they remain without work because of the suspension of the machinery, installations or working arrangements or the closing of the establishment in accordance with the first subsection of this article.



Occupational health and safety boards:


Article 80. In establishments deemed to be industrial according to this Act, where a minimum of fifty employees are employed and permanent work is performed for more than six months, the employer shall set up an occupational health and safety board.


Employers are under the obligation to enforce the decisions of the occupational health and safety boards taken in accordance with the legislation on occupational health and safety.


The constitution, working methods, functions, powers and obligations of occupational health and safety boards shall be laid down in a regulation to be prepared by the Ministry of Labour and Social Security .



Physician at the establishment:


Article 81. In establishments where a minimum fifty employees are employed, the employers are under the obligation, in order to meet the needs of employees for medical treatment which fall outside those provided for by the Social Insurance Organisation, to employ one or more physicians at the establishment and set up a health unit with a view to protect the health of the employees, to take occupational health and safety measures and to provide first aid, urgent treatment and preventive health services depending on the number of employees and the risk factors involved.


The qualifications of physicians, their number, recruitment, duties, powers and responsibilities, training and working conditions and methods of performing their duties as well as the health units to be set up at establishments shall be indicated in a regulation to be issued by the Ministry of Labour and Social Security after receiving the opinion of the Ministry of Health and the Union of Physicians of Turkey.



Engineers or technical staff in charge of safety at work:


Article 82. With a view to conduct services for providing measures of safety at work and determining the measures aimed at preventing work accidents and occupational diseases as well as following up their execution, employers of establishments where a minimum of fifty employees are employed on a continued basis and where permanent work is performed for more than six months shall employ one or more engineers or technical staff, depending on the number of employees, the nature of the establishment and the degree of accident risks involved.


The qualifications of work safety engineers or technical staff, their number, duties, powers and responsibilities, training and working conditions as well as the methods of performing their duties shall be indicated in a regulation to be issued by the Ministry of Labour and Social Security after obtaining the opinion of the Union of Chambers of Engineers and Architects of Turkey.



Rights of employees:


Article 83. In connection to occupational health and safety in an establishment, any employee faced with an imminent, urgent and life-threatening danger which may do harm to his health or endanger his bodily integrity may make an application to the occupational health and safety board with a request for the determination of the case and a decision for the adoption of necessary measures. The board shall hold an urgent meeting and decide on the same day, and lay down the case in a written report. The decision shall be communicated to the employee in written form.


In establishments where there are no occupational health and safety boards, the request shall be made to the employer or the employer's representative. The employee may request the determination of the case and demand a written report to that effect. The employer or his representative must give a written reply.


In the event the board takes a decision consistent with a employee's request, the employee may refrain from working until the necessary occupational health and safety measure is taken.


The employee's wages and other rights shall be reserved during the period he refrains from working.


In establishments where the necessary measures have not been taken despite the decision of the occupational health and safety board and the employee's request, employees may terminate, with no obligation to respect the notice term, their employment contracts with a definite or indefinite period, within the six working days in accordance with subsection (I) of Article 24 of this Act.


Provisions of Article 79 of this Act shall not apply in the event of suspension of operations or the closing of the establishment.



Prohibition of alcohol and narcotics:


Article 84. It shall be unlawful for an employee to enter an establishment while drunk or under the effect of narcotics or to consume alcoholic beverages or to take narcotic substances within its premises.


The employer may determine the circumstances, time and conditions for consuming alcoholic beverages in parts of the establishment treated as subordinate facilities.


The prohibition of consuming alcoholic beverages shall not apply to:


employees assigned to quality control in establishments where alcoholic beverages are manufactured,


employees obliged to consume alcoholic beverages owing to the requirements of the job in establishments which hold a license to sell liquor in closed containers or in open cups,


employees allowed to consume alcoholic beverages with customers owing to the requirements of the job.




Arduous and dangerous work:


Article 85. Young employees who have not completed the age of sixteen years and children must not be employed on arduous or dangerous work.


A regulation shall be issued by the Ministry of Labour and Social Security, after taking the opinion of the Ministry of Health, to specify the categories of work deemed to be arduous or dangerous and the categories of arduous or dangerous work in which young employees who have completed the age of sixteen but are aged under eighteen, as well as women may be employed.



Medical certificate in arduous or dangerous work:


Article 86. An employee shall not be engaged for or employed on any arduous or dangerous work without a certificate based on the results of a medical examination made either at the time of his recruitment or during his employment at least once a year to prove that he is physically fit for the job in question and robust; the medical certificate shall be obtained from the medical practitioner attached to the establishment or from a employees' health dispensary, or in the absence of either, from the medical services of the nearest Social Insurance Organisation, health centre, government or municipal medical practitioner, in that order.


The Social Insurance Organisation may not refrain from conducting the first medical examination at the time of the employee's recruitment.


In the event of an objection to the certificate given by the medical practitioner attached to the establishment, the employee concerned shall be examined by the medical council of the nearest hospital of the Social Insurance Organisation, in which case the medical certificate given shall be definitive.


Such certificates shall be produced by the employer on request by any competent official.


Such certificates shall be exempt from all fees and taxes.



Medical certificate for employees aged under eighteen years:


Article 87. Before being admitted to any employment whatsoever, children and young employees aged between fourteen and eighteen (including those in their eighteenth year) shall be examined by the medical practitioner attached to the establishment or by an employees' health service, or in the absence of either, by the medical services of the nearest Social Insurance Organisation, health centre, government or municipal medical practitioners, in that order, and shall be certified as being physically fit for the job to be performed, taking into consideration the nature and conditions of the work.


Until they have reached the age of eighteen, such employees shall be subject to medical examinations at least every six months in the same manner, to determine whether or not there is any drawback in their continuing their employment; all such certificates shall be filed in the establishment and produced by the employer on request by any competent official. The Social Insurance Organisation may not refrain from conducting the first examination before the employee's admission to employment.


In the event of an objection against the certificate issued by any of the medical services mentioned above, the employee in question shall be examined by the medical council of the nearest Social Insurance Organisation hospital, in which case the certificate given shall be final.


Such certificates shall be exempt from all stamp duties, fees and taxes.



Regulation for pregnant or nursing women:


Article 88. A regulation to be prepared by the Ministry of Labour and Social Security, after taking the opinion of the Ministry of Health, shall specify during which periods and in what types of jobs the employment of pregnant and nursing women is to be prohibited, what conditions and procedures they shall abide by while working on jobs in which they may be employed as well as how the nursing rooms and child care centers are to be established.



Other regulations:


Article 89. After taking the opinion of the Ministry of Health, the Ministry of Labour and Social Security may also issue regulations foreseeing


the medical examination of employees before being admitted to employment in jobs other than those which are arduous and dangerous,


a general medical examination of employees in certain jobs at certain intervals,


preclusion of employees from certain jobs where their health conditions are affected adversely or where their work does harm to their products, to general health or to other employees with whom they work,


specification of the situations and conditions in establishments where bathing, sleeping, resting and dining facilities as well as employee housing and labour training premises are to be established.


SIXTH CHAPTER


Employment Service



Acting as an intermediary in finding employment and employees:


Article 90. The task of acting as an intermediary in providing employees with jobs suitable to their qualifications and in finding employees qualified for different kinds of work for employers shall be performed by the Employment Organisation of Turkey and by the private employment agencies permitted to function in this capacity.



SEVENTH CHAPTER


Supervision and Inspection of Working Conditions



Powers of the State:


Article 91. The State shall follow up, supervise and inspect the implementation of labour legislation governing working conditions.


This duty shall be performed by officials of the Ministry of Labour and Social Security in sufficient numbers and with the necessary qualifications, specially empowered to exercise supervision and to make visits of inspection.


The supervision and inspection of military establishments and of workplaces where materials for national security are manufactured as well as the procedures concerning their end-results shall be carried out according to a regulation to be prepared jointly by the Ministry of National Defense and the Ministry of Labour and Social Security.



Competent authorities and officials:


Article 92. For the purpose of implementing Article 91, the administrative authorities and the competent officials responsible for following up, supervising and inspecting working conditions shall be entitled, whenever they deem it necessary, to inspect or examine at any time, subject to the provisions of Article 93, establishments, their administration, registers, records, accounts and other documents relating to working arrangements, the equipment, tools, apparatus, raw materials, manufactured products and all materials and accessories required for carrying on operations, and all arrangements and facilities for the health, safety, cultural development, recreation, resting and boarding of employees, and if they find any actions constituting an offence under this Act, to forbid them in the manner prescribed by the labour inspection regulations to be issued by the Ministry of Labour and Social Security.


During an inspection it shall be the duty of the employer, his representatives, the employees and any other person concerned to attend whenever summoned by the authorities or officials responsible for inspection, to give them any information requested, to present for their inspection and, if necessary, to hand over all relevant documents and records, to provide them with every assistance in the exercise of their functions as indicated in the first paragraph, and to comply, without any attempt at evasion, with all relevant orders and requests received in this connection.


The reports prepared by the authorities and officials empowered to follow up, supervise and inspect working conditions shall be held as valid until they are disproven.



Duties of competent officials:


Article 93. The authorities and officials responsible for following up, supervising and inspecting working conditions shall not, in the performance of their duties, cause any derangement of or hindrance to the normal progress of operations and the work of the establishment, except in so far as may be deemed necessary by the nature of their responsibilities; and they shall observe strict secrecy with respect to all they have seen and learned concerning the technical secrets of the employer and the establishment and his financial and commercial circumstances, unless it is necessary to disclose these matters in order to institute official proceedings, and they shall not reveal the names and identities of employees and other persons from whom they have received information or who have made reports to them.



Exemptions from fees and taxes:


Article 94. In written applications to the Ministry of Labour and Social Security by the employees and employers as well as their respective occupational organisations on matters of concern to them and to working conditions, such petitions and reports, documents, books and procedures of all kinds shall be exempt from stamp duties, fees and taxes.



Inspections by other authorities:


Article 95. The municipalities and other authorities competent to issue permissions for the setting up and opening of establishments shall, before giving the said permisions, investigate the existence of the opening and operating certificate which must have been granted by the Ministry of Labour and Social Security in accordance with pertinent labour legislation.


Municipalities and other authorities may not give opening and operating licences to establishments which have not yet been granted opening and operating certificates by the Ministry of Labour and Social Security.


Public institutions and organisations shall communicate to the competent regional directorate of labour the results of their occupational health and safety inspections and supervisions at establishments as well as the actions they will take regarding these establishments.


Municipalities and other authorities competent to give permits for setting up and opening establishments shall communicate every month to the relevant regional directorates of labour lists of names and addresses of employers and establishments for which they have issued permits as well as the nature of the work to be performed until the fifteenth day of the following month.



Responsibilities of employees and employers:


Article 96. Employers and their representatives shall not make suggestions as a basis for replies by employees from whom information is requested by the authorities responsible for supervision and inspection, nor shall they incite or compel employees in any manner whatsoever to conceal or distort the facts, or discriminate against them in any way on account of information supplied or communications or applications addressed by them to the competent authorities.


Employees shall not provide the authorities or officials with information contrary to the facts respecting their employers or the establishments in which they are or have been employed, thereby giving rise to unnecessary official action by such authorities and officials; they shall not bring false accusations or unlawful actions against their employers, or reply incorrectly to questions addressed to them by the labour inspectors, or abusively hamper, complicate or misdirect supervision or inspection work.



Police Assistance:


Article 97. On application by the competent labour inspectors responsible for supervision and inspection of establishments and with a view to ensuring the application of the provisions of this Act, the police authorities shall provide all necessary assistance to enable the said labour inspectors to perform their duties.



EIGHTH CHAPTER


Administrative Penal Provisions



Violation of the obligation to notify the establishment:


Article 98. The employer or employer's representative who acts in violation of the obligation to give notification about the establishment as indicated in Article 3 of this Act shall be liable to a fine of fifty million liras per employee.


In the event of the repetition of this violation after the penalty has become definitive, the same fine shall be applicable for each ensuing month.



Violation of general provisions:


Article 99. The employer or his representative who;


acts in violation of the principles and obligation foreseen in Articles 5 and 7 of this Act,


does not give the employee the document mentioned in the last paragraph of Article 8, acts in violation of the provisions of Article 14, and


violates the obligation to arrange a work certificate in accordance with Article 28 or writes incorrect information on this certificate, shall be liable to a fine of fifty million liras for each employee in this category.


Violation of the provisions on collective dismissals:


Article 100. The employer or his representative who lays off employees in contravention of the provisions of Article 29 of this Act shall be liable to a fine of two hundred million liras for each employee thus terminated.



Violation of the obligation to employ disabled persons and ex-convicts:


Article 101. The employer or employer's representative who does not employ disabled persons and ex-convicts in contravention of the provisions of Article 30 of this Act shall be liable to a monthly fine of seven hundred fifty liras for each disabled person and ex-convict for whom this obligation is not fulfilled. Public organisations shall by no means be exempt from this penalty.


Violation of the provisions as to wages:


Article 102.


An employer or his representative shall be liable to a fine of three hundred million liras for each aggrieved employee and for each month if he deliberately fails to pay the full wages to which the employee is entitled under this Act specified in Article 32, or in the collective agreement or the employment contract, or if he fails to pay the minimum wage in full fixed by the commission as defined in Article 39.


An employer or his representative shall be liable to a fine of two hundred million liras if he fails to deliver an employee the wage slip in contravention of Article 37 or if he makes deductions from the employee's wages as fines or if he fails to specify the reasons or to produce the accounts for such deductions in contravention of Article 38, or fails to deliver the document mentioned in Article 52.


An employer or his representative shall be liable to a fine of one hundred million liras for each employee in the following categories: if he fails to pay the employee overtime wages indicated in Article 41; if he fails to allow the employee to use the free time to which he is entitled within six months; and if he does not obtain the employee's approval for work at extra hours.




Violation of the provisions on annual leave with pay:


Article 103. The employer or his representative shall be liable to a fine of one hundred million liras for each employee in the following categories: if he divides the annual leave with pay into segments in contravention of Article 56 of this Act; or if the pays annual leave with pay in contravention of the third or fourth paragraphs of Article 57 or if he pays less than the amount which is due; or, in the event of the termination of the employment contract before the employee has availed himself of the annual leave to which is entitled in accordance with Article 59, if he fails to pay the wages corresponding to this leave; or if he fails to implement in full the provisions of the regulation mentioned in Article 60.



Violation of the provisions on organisation of work:


Article 104. An employer or his representative shall be liable to a fine of five hundred million liras if he causes employees to work beyond the hours fixed in Article 63 or in the regulation issued in pursuance of this Article, if he fails to comply with the provisions of Article 68 as to rest periods; if he causes his employees to work more than seven-and-a-half hours on night work or fails to alternate night and day shifts contrary to Article 69, if he acts contrary to the provisions of Article 71, if he employs boys under the age of eighteen years or girls or women irrespective of their age on work in which their employment is prohibited by Article 72, if he employs children and young employees on night work contrary to the provisions of Article 73 and the regulation mentioned in that Article or acts contrary to the prohibition mentioned in the first paragraph of that Article, if he causes pregnant or confined women to work in periods before and after birth or fails to grant them leave without pay contrary to the provisions of Article 76, if he fails to keep personnel files mentioned in Article 75, or if he fails to comply with the provisions of the regulation mentioned in Article 76.


The employer or his representative shall be liable to a fine of one hundred million liras for each employee concerned if he acts contrary to the provisions envisaged in Article 64 and 65.



Violation of the provisions as to health and safety:


Article 105. The employer or his representative shall be liable to a fine of fifty million liras for each health and safety measure not taken if he fails to abide by the provisions prescribed in the regulation mentioned the first paragraph of Article 78 of this Act. A fine of the same amount shall be applicable for each ensuing month to the extent the said measures have not been taken .


The employer or his representative shall be liable to a fine of five hundred million liras for each of the following offences: if he acts contrary to the provisions of Article 77; if he opens an establishment without obtaining a permit for its establishment or operation as prescribed by the second paragraph of Article 78; if he, contrary to Article 79, resumes operations which have been stopped or reopens an establishment which has been closed down without being permitted to do so; if he fails to establish an occupational health and safety board in the establishment as set out in Article 80 or obstructs the operations or fails to enforce the decisions of such boards; if he, in contravention of Article 81, fails to employ a medical practitioner or to form a health unit in the establishment; and if he fails to employ engineers or technical staff for occupational safety in contravention of Article 82.


The employer or his representative shall be liable to a fine of five hundred million liras if he employs, in contravention of Article 85, children under the age of sixteen in arduous and dangerous work or if he violates the age limits prescribed in the said Article.


The employer or his representative shall be liable to a fine of one hundred million liras for each employee involved if he fails to produce medical certificates for employees in accordance with Article 86 of this Act, and to a fine of one hundred million liras for each child involved if he does not procure medical certificates for children in accordance with Article 87.


The employer or his representative shall be liable to a fine of five hundred million liras if he does not respect the conditions and procedures set out in the regulations mentioned in Article 88 and 89 of this Act.



Violations as to employment services:


Article 106. The employer who performs employment services without procuring the permit envisaged in Article 90 of this Act shall be liable to a fine of one billion liras.



Violation of provisions as to the supervision and inspection of working conditions


Article 107. The employer or his representative shall be liable to a fine of five billion liras;


if he fails to discharge the duties envisaged in Article 92, or


if he fails to comply with the prohibitions listed in Article 96 of this Act.

Persons who obstruct the performance and conclusion of the labour inspector's supervision and inspection work based on this Act as well as on other legislation shall be liable to a fine of five billion liras, in addition to any other penalty which may be inflicted by law for a different offence.



Provisions as to application of administrative fines:


Article 108. The fines of an administrative nature envisaged in this Act shall be enforced, along with an explanation of the underlying reason, by the regional director of the Ministry of Labour Social Security.


The administrative fines indicated in this Act shall be enforced by the regional director of the Ministry of Labour and Social Security competent in the region concerned. Decisions on administrative fines shall be communicated to the persons concerned according to the Act No. 7201 of 11 February 1959 respecting administrative communications. Appeals may be lodged against such fines with the competent administrative court in seven days at the latest. Appeal shall not discontinue the enforcement of penalty given by the administration. The decision given upon appeal is final. Where a hearing is not deemed necessary, the appeal shall be concluded in the shortest time possible by the examination of documentary evidence.


Administrative fines levied in accordance with this Act shall be collected according to the provisions of Act No. 6183, dated 21 July 1953, on the collection procedures for public claims.




NINTH CHAPTER


Supplementary, Transitional and Concluding Provisions



Written Notification:


Article 109. The notifications envisaged in this Act shall be made to the person concerned in written form and upon obtaining his signature. The refusal to sign by the person to whom notification is communicated shall be documented on the spot in written form. However notifications within the scope of Act No. 7201 shall be made in accordance with the provisions of the said Act.



Special working conditions of janitors:


Article 110. Special procedures and principles concerning the scope and nature of janitors' work as well as their working time, weekly rest day, national and public holidays, right to annual leave with pay and the janitors' dwellings shall be laid down in a regulation to be prepared by the Ministry of Labour and Social Security.



Industrial, commercial, agricultural and forestry works:


Article 111. The Ministry of Labour and Social Security shall determine in a regulation whether or not an activity is to be deemed industrial, commercial, agricultural and forestry work.


Working conditions, employment contracts, wages and organisation work of those employed in activities deemed as agricultural and forestay work shall be indicated in a regulation to be issued by the Ministry of Labour and Social Security.



Severance pay of employees working in certain public institutions and public organisations:


Article 112. Payments made, in the form of leave pay, to the personnel of institutions and organisations established by law or for whom the provisions of this Act and of Acts Nos. 854, 5953 and 5934 are not applicable, as well as employees of public institutions engaged on a contract basis, shall be regarded as severance pay.


Guarantee of wages of employees employed in certain jobs:


Article 113. Provisions of Articles 32,35,37 and 38 shall apply to employees working in establishments cited in subsections (b) and (ı) of the first paragraph of Article 4 of this Act. In the event of violations of these articles, relevant penal provisions shall apply to the persons concerned.



The Tripartite Consultation Board:


Article 114. With a view to promoting labour peace and industrial relations and following up legislative developments and implementations, a tripartite board of advisory nature shall be established in order to provide for effective consultations between the government and confederations of employers, public servants, and labour unions.


The working methods and principles of the Board shall be indicated in a regulation to be issued.



Opening canteens:


Article 115. With a view to meeting the needs of employees and their families, the employers shall assign adequate space for consumption cooperatives to be established by employees in establishments employing a minimum of one hundred fifty employees.



Article 116. The last paragraph of Article 6 of Act No. 5953 of 13 June 1952 on labour – management relations in the press has been amended as follows:


Articles 18,19,20,21 and 29 of the Labour Act shall be applicable by analogy.



Article 117. The phrase "of the Labour Act No. 1475" in the first paragraph of Article 30 of Act No. 2821 of 5 May 1983 on Trade Unions has been amended as "Article 21 of the Labour Act".



Article 118. The following amendments have been made to Article 31 of Act Nı. 2821: the phrase "in 13/A, 13/B, 13/C, 13/D, 13/E" in the sixth paragraph has been amended as "in Article 18,19,20 and 21 of the Labour Act,"; the phrase "13/D of Act No. 1475 is amended as "Article 21 of the Labour Act,"; the phrase "13/A of Act No. 1475 "in the seventh paragraph has been amended as Article 18 of the Labour Act ", the phrase "13/A, 13/B, 13/C, 13/D and 13/E" has been amended as "Articles 18,19,20 and 21".



Regulations:


Article 119. The regulations envisaged by this Act shall be issued within six months of its publication.



TRANSITIONAL ARTICLE 1. All other references made to Act No. 1475 in other legislation shall be deemed to have been made to this Act.


References to Articles 16,17 and 26 of Act No. 1475 made in Article 120 of this Act as well as in the first and second subsections of the first paragraph and in the eleventh paragraph of Article 14 of Act No. 1475 which has been left in force shall be deemed to have been made to Articles 24,25 and 32 of this Act.



TRANSITIONAL ARTICLE 2. Provisions of regulations and bylaws issued in accordance with Act No. 1475 which are not contrary to this Act shall remain in force until the issuance of new regulations.



TRANSITIONAL ARTICLE 3. The decision on minimum wages taken in accordance with Act No. 1475 shall remain in force until the fixing of the minimum wage according to Article 39 of this Act.



TRANSITIONAL ARTICLE 4. The right severance pay mentioned in transitional Article 6 of this Act for those to whom Article 13 of the Labour act No. 3008 is not applicable shall commence from the date 12 August 1967.


Severance pay entitlements of those who are covered by this Act for the first time shall begin as of the date on which this Act comes into force.



TRANSITIONAL ARTICLE 5. The ratios envisaged in Article 25 of Act No. 1475 as well as in paragraph (B) of the annex article I of Act No. 3713 shall (be valid) remain in force until they are redefined by the Council of Ministers in accordance with Article 30 of this Act.



TRANSITIONAL ARTICLE 6. A severance pay fund shall be established for the severance pay of employees. Employees' entitlements to severance pay in view of Article 14 of the Labour Act no. 1475 shall be protected until the passage of the new Act relating to severance pay.



Coming into force:


Article 121. This Act shall come into force on the date of its publication



Administration:


Article 122. The Council of Ministers shall be responsible for the administration of this Act.

#119
PRESS LAW
 
Law No: 5187               
Approval Date: 9.6.2004
 
(Published in the Official Gazette on 26 June 2004 - No:25504)
 
 
Aim and Scope
 
Article 1 – The aim of the Press Law is to arrange freedom of the press and the implementation of this freedom.
 
The Press Law covers the printing and publication of printed matter.
 
Definitions
 
Article 2 – The implementation of the Press Law includes the following: 
a)   Printed matter: All articles, images and similar material as well as publications of news agencies printed using printing equipment or copied with other equipment with the aim of publication.
b)   The act of publication: The presentation of a published work to the public.
c)   Periodicals: Regularly published printed matter such as newspapers and magazines and the releases of news agencies.
d)   Nationwide periodicals: Periodicals published by a single press organization in at least 70% of the country, that is, in at least one province in each geographical region, and the publications of news agencies.
e)   Regional periodicals: Periodicals printed by a single press organization and published in at least three neighboring provinces or in at least one geographical region,
f)   Local periodicals: Periodicals published in a single settlement, and nationwide or regional periodicals published on a weekly basis or at longer intervals,
      g)   The form of the publication: It must be indicated whether these periodicals are nationwide, regional or local.
h)  Non-periodicals: Printed matter such as books, presents which are not published at regular intervals.
i)    Owner of the material: The individual who writes the news or the text which forms the content of the periodical or the non-periodical, the translator or the person who produces the image or the cartoon.
j)    Publisher: The real or corporate body that prepares and publishes printed matter.
k)   Printer: The real or corporate body that prints the matter with printing equipment or copies it with other equipment.
l)    Authorized representative of the corporate body: If the owner of the publication or the publisher is a corporate body, the authorized organ will designate a real person from among the managers, or the public institutions and organizations will designate a real person.
 
Freedom of the Press
 
Article 3 – The press is free. This freedom includes the right to acquire and disseminate information, and to criticize, interpret and create works. 
The exercise of this freedom may be restricted in accordance with the requirements of a democratic society to protect the reputation and rights of others as well as public health and public morality, national security, and public order and public safety; to safeguard the indivisible integrity of its territory; to prevent crime; to withhold information duly classified as state secrets; and to ensure the authority and impartial functioning of the judiciary.
 
Required Information
 
Article 4 – All printed matter must include the following information: the printing location and date, names of the printing facility and publisher if he/she exists, their commercial titles if they exist, and their office addresses. This provision does not apply to notices, timetables, circulars and similar material. 
Every form of periodical except the publications of news agencies shall also include the names of the management, its owner, its representative if he/she exists, responsible editor, and its assistant if he/she exists.
 
Responsible Editor
 
Article 5 – Every periodical has a responsible editor. If there is more than one responsible editor, then their responsibilities shall be described separately. 
Individuals with the following qualifications are eligible for the position of responsible editor: 
a) At least 18 years of age,
b) Resides in or is permanently settled in Turkey,
c) A graduate of at least secondary school or its equivalent,
d) Not restricted or banned from public services.
e) Not to be convicted of defamatory offenses,
  f) For non-Turkish citizens, the principle of reciprocity applies.
If the responsible editor is a member of the Turkish Grand National Assembly (TGNA), an assistant editor shall be appointed to assume the position of responsible editor. The same provisions shall also apply for the assistant editor.
 
Owner of the Periodical
 
Article 6 – Real and corporate bodies as well as public institutions and organizations may own periodicals. 
If the owner of a periodical is below 18 years of age or restricted, paragraph 2 of Article 5 shall apply for the legal representative, and if the owner is a corporate body, it shall also apply to the authorized representative.
 
Submitting the Declaration
 
Article 7 – In order to publish a newspaper or other periodicals, a declaration shall be recorded and submitted to the Office of the local Chief Prosecutor. Records to this office shall be public. 
The declaration submitted bearing the signature of the owner of the publication and the representative of the owner if he/she is below 18 or a corporate body and the responsible editor shall include the following information: the name of the publication and its contents; in which periods it shall be published; the headquarters of the management; and the names and addresses of the owner, the representative if he/she exists, responsible editor, and the assistant editor if he/she exists; and the form of the publication.   
If the owner of the publication is a corporate body, documents which demonstrate that the conditions laid down in Articles 5 and 6 exist and one copy of the regulations or principle agreement or the settlement deed shall be added to the declaration. 
Upon receipt of the declaration and its additions, the Office of the Chief Prosecutor shall present a notice of delivery to the publication.
 
Examination of the Declaration
 
Article 8 – If the declaration and its annexes fail to include the necessary and accurate information, or the owner or his/her representative or responsible editor or his/her assistant fails to meet the conditions prescribed by Articles 5 and 6, the Office of the Prosecutor shall order that the owner of the publication complete all the necessary information or correct untrue information within two weeks after submission of the declaration. If this order is not fulfilled within two weeks after its notification, the Office of the Prosecutor will petition the Criminal Court of First Instance to order that the publication be stopped. The Criminal Court of First Instance shall then reach a verdict within two weeks at the latest. This verdict can be appealed through request for an emergency stay order. 
The same authority shall be notified of changes to be made in the declaration within two weeks through a new declaration along with the necessary documents.   
The first paragraph shall also apply to new declarations.   
If the responsible editor or his/her assistant resigns, the responsibility shall fall on the owner of the publication or on his/her representative until a new responsible editor is assigned.
 
Revocation of the Rights of the Owner of a Periodical
 
Article 9 – If a periodical is not published within the space of one year or if not published for a period of three years after submission of its declaration, the declaration shall be considered null and void and consequently the rights entailed revoked.   
The provisions of the Decree with the Power of Law concerning the Protection of Brand Names No. 556 are reserved. However, publishers who publish periodicals in accordance with Press Law No. 5680 on the date when this law went into effect cannot be prevented from publishing in line with Decree No. 556 on the Power of Law Protecting Brands. 
 
Responsibility for Delivery of the Periodical
 
Article 10 – The publisher is required to submit two copies of each publication to the local office of the Chief Prosecutor on the same day the periodical is published or distributed.   
This requirement is also valid for identical issues and future issues of the publication which include changes in format and content. 
A notice of delivery shall be presented to the publisher once this requirement is fulfilled.
 
Penal Liability
 
Article 11 – Crimes committed by way of printed matter occur upon their publication. 
The owner of the publication shall be held responsible for crimes committed through periodicals and non-periodicals.   
If the owner of a periodical is not specified or he/she does not hold penal liability during the publication or he/she cannot be tried by Turkish courts due to he/she being abroad during the publication process or if the punishment to be imposed does not influence another punishment previously imposed due to other crimes he/she committed, the responsible editor and the editor working beneath him/her, editor-in-chief, editor, press advisor shall be held responsible. However, if the publication is published despite the objection of the responsible editor and the editor working beneath him/her, the responsibility shall fall on the person who made the matter published.   
If the owner of a non-periodical is not specified or he/she does not hold penal liability during the publication or cannot be tried by the Turkish courts or he/she is abroad during the publication process or if the punishment to be imposed upon him/her does not affect another punishment he/she was given due to other crimes committed, the publisher shall be held responsible. If the publisher is not specified or if he/she does not have penal liability during the printing if he/she cannot be tried in Turkey due to he/she being abroad during the publishing, then the printer shall be held responsible. 
The above provisions shall also be applied to all publications which violate the provisions related to periodicals and non-periodicals.
 
News Source
 
Article 12 – The owner of the periodical, responsible editor, and owner of the publication cannot be forced to either disclose their news sources or to legally testify on this issue.
 
Judicial Liability
 
Article 13 – If material or moral damages are incurred due to the publishing of a periodical, the owner of the periodical and his/her representative if he/she exists shall be held responsible. In non-periodicals, the publisher and the owner of the publication or the printer if the publisher is not specified shall be held jointly and severally responsible.   
This article is applied to the owners of both periodical and non-periodical publications, owners of brands or licenses, renters, operators or publishers under any title and real or corporate persons who act as publishers. If the corporate body is a company, the chairman of the board of directors in joint stock companies, and for others, the highest-level administrator is responsible jointly and severally with the company. 
After the activity which causes damage is carried out, if the publication is handed over in any way, or it joins with another publication or its owner – real or corporate person – is changed, the real and corporate person who takes over the publication, merges and acts as the owner of the publication and in joint stock companies, the chairman of the board of directors, and for others, the high-level administrator is responsible jointly and severally with those stated in the first and second paragraphs.
 
Correction and Reply
 
Article 14 – In cases where the reputation of an individual or his/her honor are slandered or in cases of unfounded allegations, the responsible editor of the periodical shall be obliged to publish a correction and a reply sent by the person slandered within two months after the publication date of the article in question. The correction and reply, which shall neither include any element of crime nor contradict the interests of third parties protected by the law, shall be published without any additions or modifications within three days at the latest from the receipt of the correction and reply in daily periodicals; while in other periodicals, it shall be published in the first issue three days after receipt of the correction and reply. The correction and reply shall be on the same page and column as the original offending article, and shall be in the same font and format, in compliance with the guidelines for writing.   
The article in question shall be specified in the correction and in the reply. The correction and reply cannot be longer than the article in question. If the article in question is shorter than 20 lines or is an image or a cartoon, the correction and reply cannot be longer than 30 lines.   
If the periodical is published in more than one place, the correction and reply shall be published in all copies which included the offending article.   
If the correction and reply is not published within the periods specified in the afore-mentioned paragraph 1, the person seeking the correction and reply may apply to a local criminal judge to deliver a verdict on the publication of the correction and reply in accordance with the provisions prescribed by the law, as soon as the predetermined period for the publishing of the correction and reply has passed. If the correction and reply contradicts the provisions of the same paragraph, the person seeking the correction and reply shall have the same right within 15 days from the date of publication. The criminal judge shall render a verdict on this request within three days without any hearing.   
The verdict of the judge may be appealed through immediate objection. The decision made within three days by the authority to whom the objection is submitted shall be considered final. 
If the judge rules that a reply and correction must be published, the time periods stated in paragraph 1 begin with the date when the verdict becomes final, provided no appeal is filed against the judge's ruling. If an appeal is filed, the period begins with the announcement of the official verdict. 
If an individual who has the right of reply and correction dies, this right can be exercised by one of his/her survivors. In this case one month can be added to two-month period of correction and reply specified in paragraph 1.
 
Failure to Supply Required Information
 
Article 15 – If information stipulated in Article 4 to be supplied in printed matter is not supplied or supplied untruly, the responsible editor, and the editor working beneath him/her, the publisher or the printer, who does not disclose his name or address or else discloses his name and address incorrectly, shall be sentenced to pay a major fine ranging from 500 million to 20 billion TL. This fine cannot total less than 2 billion TL for regional periodicals or 5 billion TL for nationwide periodicals.
 
Resuming a Suspended Publication
 
Article 16 – If a publication ordered suspended by a court verdict in line with Article 8 resumes publication without submitting an appropriate declaration or notifying of changes made, the owner of the publication and responsible editor and the editor working beneath him/her shall be sentenced to pay a major fine ranging from 1 billion to 15 billion TL. This fine cannot total less than 5 billion TL for regional periodicals and 10 billion TL for nationwide periodicals.
 
Failure to Fulfill the Obligation to Deliver the Publication
 
Article 17 – Any printer who does not fulfill the obligation stipulated in Article 10 shall be sentenced to pay a major fine ranging from 300 million to 1 billion TL.
 
Failure to Publish Reply and Correction
 
Article 18 – A responsible editor and the editor working beneath him/her who fails to comply with a judge's order to carry a reply and correction shall be sentenced to pay a major fine ranging from 10 billion to 150 billion TL. This fine cannot total less than 20 billion TL for regional periodicals and 50 billion TL for nationwide periodicals. 
The owner of the publication and the responsible editor and the editor working beneath him/her shall be jointly and severally responsible for fines imposed on the responsible editor or assistant editor.   
If the reply and correction are not published or are published without complying with the conditions stipulated in paragraph 1 of Article 14, the judge shall decide on its publication through an announcement made by the Press Notification Institution in the two newspapers, the circulations of which are over 100,000, the expenses for which shall be met by the owner of the offending publication.
 
Compromising the Judicial Process
 
Article 19 – In a period beginning with preparatory inquiry to nol pros, or to open public lawsuit, a person who publishes material about the proceedings of the Republican prosecutor, judge or court or content of documents regarding the inquiry shall be sentenced to pay a major fine ranging from 2 billion to 50 billion TL. This fine cannot total less than 10 billion TL for regional periodicals and 20 billion TL for nationwide periodicals.   
Any individual who publishes comments about the judge or court proceedings before the case concludes with a final verdict shall be punished as under paragraph 1 above.
 
Encouraging Sexual Assault, Murder or Suicide
 
Article 20 – Those who publish articles and images which can encourage sexual assault, murder or suicide beyond the limits of furnishing information on such activities shall be sentenced to pay a major fine ranging from 1 billion to 20 billion TL. This fine cannot total less than 2 billion TL for regional periodicals and 10 billion TL for nationwide periodicals.
 
Illicit Disclosure of Identities
 
Article 21 – In periodicals, persons who disclose the identities of the following individuals shall be sentenced to pay a major fine ranging from 1 billion to 20 billion TL (not less than 2 billion TL for regional periodicals and 10 billion TL for nationwide periodicals): 
a)      News about sexual acts between individuals prohibited from marrying under Turkish Civil Code No. 4721 dated 22.11.2001.
b)      Victims who appear in the news regarding crimes mentioned in Articles 414, 415, 416, 421, 423, 429, 430, 435 and 436 of Turkish Penal Code No. 765 dated 01.03.1926.
c)      Victims or perpetrators of crimes under the age of 18.
 
Mutilation or Obstruction of Printed Matter
 
Article 22 – Any individual who mutilates a legally printed publication with the aim of preventing its publication, distribution or sale shall be sentenced to serve a prison term of a maximum of one year as well as pay a major fine ranging from 1 billion to 5 billion TL, providing that the act does not constitute a more serious crime. 
Any individual who blocks the printing, publication, distribution or sale of periodicals and non-periodicals, though they comply with the conditions of the law, by resorting to force or threats shall be sentenced to serve a prison term of a maximum of two years and to pay a major fine ranging from 2 billion to 10 billion TL, providing that this act does not constitute a more serious crime. 
If the acts enumerated above are committed by more than one individual congregating around a printing house or places of public sales or distribution, then the punishment shall be increased by half.
 
Distribution of Periodicals
 
Article 23 – Individuals who distribute periodicals are obliged to distribute them in return for a certain amount of money which shall not exceed the price of the distribution determined according to the circulation, the number of pages, and the sale price of other publications also distributed by them. Those who act in violation of this regulation shall be sentenced to pay 10 times the total price of the publication which they failed to distribute. 
Real or corporate bodies that retail periodicals may make contracts with as many distribution companies and sell as many publications as they desire. No one may oblige these bodies not to sell the rival publications or cause actions requiring the non-sale of these publications or bring about this result.
 
Re-publication
 
Article 24 – Individuals who re-publish news, articles or photographs previously printed in a periodical without disclosing their source shall be sentenced to pay a major fine ranging from 5 billion to 10 billion TL. 
Even though the right to re-publish is reserved, those who publish such printed matter without providing due acknowledgement of the owner of the periodical shall be sentenced to pay a major fine ranging from 20 billion to 40 billion TL.
 
Confiscation and Prohibition of Distribution and Sale
 
Article 25 – The state prosecutor may confiscate three copies for examination at most of all printed matter. If inconvenience results from delays in the examination, police may confiscate the printed matter. 
So long as an examination or investigation is launched, all printed matter may be confiscated through a judge's order under Law Concerning Crimes Committed Against Atatürk's Principles No. 5816 dated 25.07.1951, the Reform Laws stated in Article 174 of the Constitution, paragraph 2 of Article 146, paragraphs 1 and 4 of Article 153, Article 155, paragraphs 1 and 2 of Article 311, paragraphs 2 and 4 of Article 312, paragraph (a) of Article 312 of Turkish Penal Code No. 765 and paragraphs 2 and 5 of Article 7 of Anti-Terror Law No. 3713 dated 12.04.1991.   
Notwithstanding their language of publication, if there is strong evidence that periodicals and non-periodicals published outside of Turkey entail crimes stated in the afore-mentioned paragraph 2, their distribution or sale in Turkey may be prohibited upon the order of the Office of the State Chief Prosecutor through the verdict of the local criminal judge. If inconvenience results from delays in the examination, a decision of the State Chief Prosecutor will suffice. This order shall be presented for judicial approval within 24 hours at the latest. If a judge does not approve within 48 hours, the Chief Prosecutor shall consider the decision null and void. 
Those who intentionally distribute or sell publications or newspapers prohibited under the preceding paragraph shall be as responsible for the offense as the owner of the publication.
 
Trial Periods
 
Article 26 – It is essential that cases of crimes entailing the use of printed matter or other crimes mentioned in this law should be opened within a period of two months for daily periodicals and six months for other printed matter.   
This period begins with the delivery of the printed matter to the Office of the State Chief Prosecutor. If the material is not submitted, the beginning date of the above-mentioned periods is the date when the Office of the State Chief Prosecutor ascertains the action which constitutes the crime. However, these periods cannot exceed the periods stipulated by Article 102 of the Turkish Penal Code. 
The period for the case to be opened against individuals who had material published despite the objection of the responsible editor and the editor working beneath him/her begins when the decision acquitting the responsible editor and the editor working beneath him/her becomes final. 
If the responsible editor discloses the identity of the owner of the publication, the period for the case to be opened against the owner of the publication begins with the date when the disclosure is made. 
The period to open a case concerning crimes the legal proceedings of which are based on complaints begins when the date the crime is committed is ascertained, provided that the prescription envisaged by the law is not exceeded.   
Regarding crimes for which permission or a decision to open a public case is needed, the period to open a case ends when the application is made. This process cannot exceed two months.
 
Responsible Courts and Method of Trial
 
Article 27 – For cases opened involving crimes committed by printed matter or other crimes envisaged in this law, and those involving major penalties shall be tried by the High Criminal Court, with others to be handled by Courts of First Instance. 
If there is more than one department in a High Criminal Court or a Court of First Instance in one area, the cases shall be handled by Court No. 2. 
Cases regarding crimes committed by way of printed matter or other crimes stipulated in this law shall be considered urgent.
 
Prohibition of Conversion into Punishments Restricting Freedom
 
Article 28 – Fines stipulated in this law for crimes not under Articles 18 and 22 cannot be converted into punishments restricting freedom.
 
Notification
 
Article 29 – For notification proceedings, the administrative headquarters of the periodical is regarded as the legal residence of the owner and the representative of the publication and also that of the responsible editor for so long as their duties continue.
 
Annulled Sentences
 
Article 30 – Press Law No. 5680 dated 15 July 1950 and its amendments are hereby annulled.
 
Provisional Article 1 – The owner, responsible editor of periodicals published prior to the date when this Law goes into effect shall, within 30 days after the law goes into effect, notify the Office of the State Chief Prosecutor at its headquarters as to the form of the publication. If this obligation is not fulfilled, the owner, the responsible editor of the publication shall be sentenced to pay a major fine amounting from 500 million to 20 billion TL. This fine cannot total less than 2 billion TL for regional periodicals and 5 billion TL for nationwide periodicals.
 
Provisional Article 2 – Representatives and responsible editors of periodicals published by public institutions and organizations prior to the date when this Law goes into effect shall change the publication and printing of the periodical in line with the provisions envisaged by this Law within six months as from the enactment of this Law.
 
Date of Effectiveness
 
Article 31 – This law goes into effect upon its publication.
 
Implementation
 
Article 32 – The Council of Ministers shall implement provisions stipulated in this law.

#120
TURKISH ATTORNEYSHIP LAW / TURKISH ATTORNEYSHIP LAW
April 17, 2007, 05:44:25 PM
ATTORNEYSHIP LAW - Turkey   7
Attorneyship And The Attorney   7
Nature of attorneyship   7
Purpose of attorneyship   7
Admission Into The Profession Of Attorney   8
Conditions for admission   8
Exceptions   8
Impediments to admission into attorneyship   9
Request for registration in the bar association   10
Decision   10
Objection to denial of request or to decision to wait until the completion of prosecution   10
License of attorneyship and oath   11
Notification of the decision of rejection   11
Instances of Prohibition   13
Activities incompatible with attorneyship   13
Activities compatible with attorneyship   13
The attorney's relation of kinship or marriage with a judge or prosecutor   14
Prohibition from practicing attorneyship after termination of certain duties   14
Apprenticeship   16
General   16
Qualifications required   16
Documents to be enclosed with the letter of application   16
Announcement of the request   17
Report   17
Decision   17
Commencement of apprenticeship   18
Attorney with whom apprenticeship will be served   18
Serving the apprenticeship and the duties of the apprentice   18
Apprenticeship reports   19
Extension of the duration of apprenticeship   19
Tasks that apprentices may perform   19
Bar associations' aid to apprentices   20
Attorneyship Examination   21
Examination   21
Eligibility for the examination   21
The nature and topics of the examination   21
Examination results   22
Articles 32-33 – <Abolished>   22
The Rights And Duties Of The Attorney   23
General   23
Work exclusive to attorneys   23
Seeking conciliation   24
Keeping information confidential   24
Notification of refusal of commission   24
Statutory refusal of commission   24
Attorneys' right to keep documents and lien   25
Statute of limitations in claims for damages   25
Resignation from rendering services   25
Temporary assignment of an attorney   26
Requirement to establish office   26
Attorneys working together or as an attorney partnership   26
Persons eligible for employment in attorney offices   28
Conducting legal business, review of lawsuit files, and obtaining copies of documents by apprentices or secretaries   29
Prohibition of appropriation of contested rights   29
Offering an attorney commission in exchange for personal interest   29
Official attire of attorneys   29
Space to be allocated to the bar association and attorneys   30
Places inappropriate for conducting consultation   30
Keeping files   30
Minutes of discussions   30
Register book   30
Prohibition of publicity   30
The right to obtain copies and to serve notice   31
Crimes against attorneys   31
Public prosecutor with the power to conduct investigation   32
Permission to prosecute, the decision to initiate final investigation, and the court where trial will be held   32
Right of objection   32
Flagrante delicto warranting heavy punishmen   33
Negligence of duty and abuse of power   33
Exercise of attorneyship powers by others   33
Special duties to the board of directors of the bar association   34
Persistence in non-payment of bar association dues   34
Bar Association Directory And Attorney Roster   35
Obligation for entry in the directory   35
Permanent practice of attorneyship in another jurisdictional area   35
Transfer to another bar association   35
Review and approval of request for transfer   35
Refusal of request for transfer   36
Deletion from directory and the register of the attorney partnership   36
Circumstances necessitating deletion from directory   37
Right of re-entry in the directory   38
Permanent deletion from the directory   38
Attorney roster   38
Bar Associations   40
General Provisions   40
Establishment and nature of bar associations   40
Establishment of bar associations, removal and deposition of their organs   40
Gratuitousness of duties and duties which may not be combined in the same person   41
Organs Of Bar Associations   42
Organs   42
I – General assembly of the bar association   42
Composition   42
Duties   42
Regular meetings   43
Extraordinary meetings   43
Call for a meeting   43
Chairing panel of the general assembly   44
Obligation to attend the meeting   44
Quorum for debate and decisions   44
Prohibition of discussion on items not on the agenda   45
II – Board of directors of the bar association   45
Composition   45
Eligibility, impediments, and mode of conduct of election   45
Term of duty   46
Withdrawal before completion of term of duty   46
Meetings   46
Toplantıya çağrı   46
Duties of the board of directors   47
III – President of the bar association   48
Election and withdrawal before the completion of term of duty   48
Duties   49
IV – Presidential council of the bar association   49
Composition and election   49
Duties of the vice-president of the bar association   50
Duties of the secretary general of the bar association   50
Duties of the treasurer of the bar association   50
V – Disciplinary board of the bar association   50
Composition   50
Eligibility and impediments to election   51
Term of duty   51
Meetings   51
Duty   51
VI – Board auditors of the bar association   51
Composition and duties   52
Union Of Bar Associations Of Turkey   53
General Provisions   53
Establishment and nature of the Union   53
Duties of the Union   53
Prohibitions, acquisition of property, place in protocol, removal and deposition of their organs   54
The paid nature of the positions   55
Organs Of The Union   56
Organs   56
I – General assembly of the Union of Bar Associations of Turkey   56
Composition   56
Meetings   57
Quorum for deliberations and decisions   57
Duties   57
II – Board of directors of the Union of Bar Associations of Turkey   58
Composition   58
Term of duty   58
Meetings   58
Duties   59
III – President of the Union of Bar Associations of Turkey   60
Election and withdrawal before the completion of the term of duty   60
Duties   60
Composition and election   61
Duties of the vice-presidents of the Union of Bar Associations of Turkey   62
Duties of the secretary general of the Union of bar associations of Turkey   62
Duties of the treasurer of the Union of Bar Associations of Turkey   62
V – Disciplinary board of the Union of Bar Associations of Turkey   62
Composition   63
Term of duty   63
Meetings   63
Duties   63
VI – Board auditors of the Union of Bar Associations of Turkey   63
Composition and duties   63
Disciplinary Actions And Penalties   65
Circumstances when disciplinary penalties will be imposed   65
Disciplinary penalties   65
Mode of imposition of penalties   65
Right of defense   66
Actions and conduct before enrollment with the bar association and after leaving the profession   66
Investigative authority and the replacement of absent members   66
The effect of criminal prosecution on disciplinary penalties   66
Initiation of disciplinary prosecution   67
Objection to decisions not to initiate disciplinary prosecution   67
Re-examination for an identical offense   68
Trial before the disciplinary board   68
Trial in absence   68
Submission and examination of evidence   69
Hearing of witnesses and expert witnesses   69
Minutes of the trial   69
Fulfilling requests received by letters rogatory   69
Summoning witnesses and expert witnesses   69
Rejection and withdrawal of disciplinary board members   70
Serving notice of decisions   70
Prohibition from practice   70
Mandatory prohibition from practice   70
Provisions for prohibition from practice   71
Revocation of the decision of prohibition from practice   71
Objection to decisions of the disciplinary board   71
Discretionary appraisal of evidence, the purpose of dispensing punishment, and deduction of time served from punishment   72
Prosecution and statute of limitations regarding penalties   73
Implementation of disciplinary decisions, clearing registers of penalties   73
Expenses incurred for witnesses and expert witnesses   73
Collection of fines or expenses   74
Attorneyship Contract   75
Scope of attorneyship contract   75
Attorneyship fee   75
Joint and several liability for payment of attorneyship fee   76
Lien of the attorney and priority of the attorneyship fee   76
Settlement of disputes through arbitration   76
Preparation of the attorneyship fee tariff   77
Amount of attorneyship fee to be imposed on the opposite party by the judicial authorities   78
Obligation to complete the job and delegation of others   78
Commissioning of another attorney by the client   78
Specificity of the attorneyship fee   79
Discontinuation of work by the attorney, dismissal of the attorney, and default in the payment of the attorneyship fee   79
Address of the client   80
Legal aid   81
Scope of legal aid   81
Legal aid office   81
Request for legal aid   81
Administration of legal aid   81
Revenues and expenses of the legal aid office   82
Annual activity report and regulations   83
Miscellaneous Provisions   84
Regulations   84
Notice to be served to public prosecutors   84
Services to be counted toward seniority in attorneyship   84
Provision for attorneys without a law degree   84
Absolute requirement to join group insurance   84
Conditional requirement to join group insurance   85
Ineligibility for group insurance   85
Consequences of non-payment of insurance premium   85
Preparation of standard contract and joining group insurance   86
Rescinded provisions   86
Amended provisions of laws   86
Amended provision of Law Number 1086   86
Counting of prior attorneyship services toward seniority upon employment in a job subject to retirement   86
Attorneys employed with public agencies and organizations and state economic enterprises   88
Representation abroad   88
Holding of elections   88
Inspection and Auditing   90
Temporary provisions   91
Provisional Article 1 –   91
Provisional Article 2 –   92
Provisional Article 3 –   94
Provisional Article 4 –   95
Provisional Article 5 –   95
Provisional Article 6 –   95
Provisional Article 7 –   96
Provisional Article 8 –   96
Provisional Article 9 –   96
Provisional Article 10 –   96
Provisional Article 11 –   96
Provisional Article 12 –   96
Provisional Article 13 –   97
Provisional Article 14 –   98
Provisional Article 15 –   98
Provisional Article 16 –   98
Provisional Article 17 –   98
Provisional Article 18 –   99
Provisional Article 19 –   99
Provisional Article 20 –   100
Supplementary Provisional Article 1 –   100
Date of entry into effect of the present Law   100
Enforcement authority of the present Law   100
PROVISIONAL ARTICLES NOT POSTED IN THE MAIN LAW NUMBER 1136 DATED 19 MARCH 1969   101
1) Provisional articles of Law Number 3256 dated 22 January 1986   101
Provisional Article 1 –   101
Provisional Article 2 –   102
Provisional Article 3 –   102
Provisional Article 4 –   102
2) Provisional articles of Law Number 4667 dated 2 May 2001   102
Provisional Article 1 –   102
Provisional Article 2 –   103
Provisional Article 3 –   103
DATES OF ENTRY INTO EFFECT OF LAWS SUPPLEMENTING AND AMENDING LAW NUMBER 1136   104


ATTORNEYSHIP LAW





PART ONE
Attorneyship And The Attorney

Nature of attorneyship
Article 1 – Attorneyship is a public service and a liberal profession.
<Amended as per Article 4667/1 dated 2 May 2001>  The attorney freely represents the independent defense which is one of the constituents of the judiciary. 

Purpose of attorneyship
Article 2 – <First paragraph amended as per Article 4667/2 dated 2 May 2001>  The purpose of attorneyship is to ensure with juridical bodies at every level, arbitrators, public and private entities, boards and agencies the arrangement of legal relations, the just and fair settlement of all kinds of legal issues and disputes, and the full implementation of legal rules.
The attorney places his/her legal knowledge and expertise in the service of justice and at the disposal of individuals for this purpose.
<Amended as per Article 4667/2 dated 2 May 2001>  Juridical bodies, police departments, other public institutions and agencies, state economic enterprises, private and public banks, notaries public, insurance companies and foundations are under the obligation to assist attorneys in carrying out their duties. These entities are obligated to submit to attorneys for their review the information and documents they require, except for the particular provisions in the statutes of the former. Getting copies of such documents is subject to the presentation of a power of attorney. In cases pending, warrants may be received from the court without waiting until the date of hearing.

PART TWO
Admission Into The Profession Of Attorney

Conditions for admission
Article 3 – <Amended as per Article 2178/1 dated 30 January 1979>
The conditions below shall be met for admission into the profession of attorney:
a) Being a citizen of the Republic of Turkey.
b) Being a graduate of one of the Turkish faculties of law; or being a graduate of a faculty of law in a foreign country and having passed examinations in the extra courses in the curriculum of Turkish faculties of law.
c) Having received an apprenticeship completion certificate after having served apprenticeship.
d) <Supplementary provision as per Article 4667/3 dated 2 May 2001> Having passed the attorneyship examination.
e) Having a legal domicile in the jurisdictional area of the bar association in the directory of which registration is sought.
f) Not being in a status unfit for attorneyship as per the present law.

Exceptions
Article 4 – <Amended as per Article 4667/4 dated 2 May 2001>
The conditions set forth in Article 3, Subparagraphs c and d shall be waived for those who have served for four years in the posts of  judge and prosecutor in  civil, administrative, and military branches of the judiciary, rapporteur at the Constitutional Court; member in the Council of State, and professor, associate professor, and assistant professor  of courses of jurisprudence in faculties subordinate to universities; and ten years in the posts of legal advisor with government agencies.
Of Turkish citizens and individuals who have acquired Turkish citizenship, those who have graduated from foreign faculties of law and have served as judge, prosecutor, or attorney at all levels of courts where they came from for four years and those who have taken up attorneyship as a profession shall be exempt from the conditions set forth in  Article 3, Subparagraphs c and d provided that they have passed examinations administered as per relevant procedures in the extra courses in the curriculum of Turkish faculties of law as stated in Article 3, Subparagraph b and that their proficiency in the Turkish language has been established by passing a language examination.
For registration in the bar association, those identified in the first and second paragraphs shall be required to furnish an uncertified copy of a synopsis of their professional records in addition to the documents indicated in Article 17, Subparagraphs 1 and 2.

Impediments to admission into attorneyship
Article 5 – The request for admission into attorneyship shall be denied in the presence of any one of the circumstances below:
a) <Amended as per Article 4667/5 dated 2 May 2001> Having been definitively sentenced to imprisonment in excess of two years with the exception of crimes of negligence or heavy imprisonment in excess of one year or having been convicted of one of the infamous crimes such as  simple and aggravated embezzlement, malversation, bribery, theft, swindling, fraud, betrayal of confidence and fraudulent bankruptcy as well as smuggling, with the exception of smuggling for the purpose of use and consumption, and bid rigging.
b) <Amended as per Article 3256/2 dated 22 January 1986> Having forfeited one's eligibility for the posts of judge, public servant or attorney as a result of a disciplinary sentence that has become final.
c) Having an unsavory reputation for misconduct not becoming a member of the profession of attorneyship.
d) Being engaged in occupations not compatible with the profession of attorneyship.
e) Having been declared incompetent by a court.                                                                                                                                                 
f) Not having one's credit restored after bankruptcy (Those convicted of negligent and fraudulent bankruptcy shall not be admitted even if their credit has been restored).
g) Not having had a formerly issued certificate of insolvency rescinded.
h) Having a bodily or mental handicap hindering one from practicing attorneyship permanently in an appropriate manner.
<Amended as per Article 4667/5 dated 2 May 2001)> Those who have been convicted of one of the infamous crimes enumerated in Subparagraph a of the first paragraph shall not be admitted into attorneyship even if their sentences have been deferred, commuted to a fine, or pardoned.
<Amended as per Article 3256/2 dated 22 January 1986)> The decision regarding  a candidate's request for admission into attorneyship may be suspended pending the completion of a prosecution in the event that one has been initiated against him/her for an offense punishable by one of the penalties stated in Subparagraph a of the first paragraph.
However, the request shall be decided upon without waiting for the conclusion of the prosecution in instances where the request should be denied regardless of the outcome. 
Request for registration in the bar association
Article 6 – <Amended as per Article 4667/6 dated 2 May 2001>
Those who have passed the attorneyship examination or those satisfying the conditions in Article 4 may request in writing to be registered in the directory of the bar association to which they have applied.

Decision
Article 7 – The board of directors of the bar association is under the obligation to make a reasoned decision within one month of the date of delivery of the written request for registration in the bar association.
Should a decision not be made during this period, the candidate's request for admission shall be considered as having been denied. In such a case, the candidate shall be at liberty to file an objection with the Union of Bar Associations of Turkey within fifteen days as of the expiration of the one-month period. The terms of Article 8 shall be applied by analogy in the event of an objection.

Objection to denial of request or to decision to wait until the completion of prosecution
Article 8 – Should the board of directors of the bar association deny the request for admission into attorneyship or decide to wait until the completion of the prosecution, it will indicate the reason in its decision.
The candidate may object to this decision within fifteen days as of the date of notice by petitioning the Union of Bar Associations of Turkey through the bar association that made the decision. The bar association concerned will give the candidate a document certifying the date of objection. No taxes, duties, or charges will be levied for this document.
The Union of Bar Associations of Turkey will accept or reject the objection after examining the file. The objection shall be considered as having been rejected if a decision is not made by the Union of Bar Associations of Turkey within one month as of the date of objection.
<Amended as per Article 4667/7 dated 2 May 2001> The decisions of the boards of directors of bar associations regarding the registration of candidates in their directories will be forwarded to the Union of Bar Associations of Turkey within fifteen days as of the date of decision. The Union of Bar Associations of Turkey will make its own decisions as to the appropriateness of the bar associations' decisions and the sustenance or overruling of the objections within one month of receiving them; and will submit its own decisions to the Ministry of Justice within one month as of the date they were made. These decisions will become final if no decision is made by the Ministry of Justice within two months as of the date of their receipt by the Ministry of Justice or if the decisions are approved. However, the Ministry of Justice will return the decisions it does not deem appropriate to the Union of Bar Associations of Turkey for reconsideration together with the reasons for return. The decisions thus returned will be considered as approved if passed unchanged by a two thirds majority vote of the Board of Directors of the Union of Bar Associations of Turkey; otherwise they will be considered as not approved. The result will be communicated to the Ministry of Justice by the Union of Bar Associations of Turkey.
The decisions of the boards of directors of bar associations regarding the rejection of a request for admission into attorneyship or waiting until the completion of  prosecution will become final if not objected to within the period allowed.
<Amended as per Article 4667/7 dated 2 May 2001> Suits may be filed with administrative tribunals by the Union of Bar Associations of Turkey, the candidate, and the bar association concerned against the decisions made by the Ministry of Justice in accordance with the fourth paragraph; and by the Ministry of Justice, the candidate, and the bar association concerned against the decisions made by the Union of Bar Associations of Turkey after reconsideration of the decisions found inappropriate and returned by the Ministry of Justice.
The bar associations are under the obligation to implement immediately the decisions that have become final.

License of attorneyship and oath
Article 9 – A candidate admitted into the profession of attorneyship will be issued a license by the bar association concerned.
Admission into attorneyship will become effective from the moment the license is issued.
Once admitted into attorneyship in this manner, the candidate becomes entitled to use the title of "attorney", which is communicated to the Union of Bar Associations of Turkey.
<Amended as per Article 4667/8 dated 2 May 2001> Licenses and identification cards of attorneys are printed by the Union of Bar Associations of Turkey in a standard format. The attorney identification card bears the nature of an official document.
When being issued his/her license, an attorney admitted into the profession is made to take the following oath before the board of directors of his/her bar association:
<Amended as per Article 4667/8 dated 2 May 2001> "I swear on my honor and conscience to abide by the law, the principles of morality, and the rules of this profession; and to uphold its respectability."
That the attorney was made to take an oath will be noted in a memorandum and kept in his/her file together with the wording of the oath. The memorandum will be signed by the attorney taking the oath as well as the members of the board of directors of the bar association.

Notification of the decision of rejection
Article 10 – Once the decision becomes final regarding the rejection of the request of a candidate for admission into the profession of attorneyship or regarding waiting until the completion of an ongoing prosecution, the bar association concerned will pass on the candidate's name to the other bar associations and the Union of Bar Associations of Turkey. This done, no bar association will be allowed to register that candidate in its directory unless the reasons for the rejection or the wait cease to exist.
PART THREE
Instances of Prohibition

Activities incompatible with attorneyship
Article 11 – Services and duties rendered in exchange for payments such as a monthly salary, a fee, a daily wage, or dues; working as an insurance agent, a merchant, or a tradesman; and all activities not agreeing with the respectability of the profession are incompatible with attorneyship .

Activities compatible with attorneyship
Article 12 – <Amended as per Article 3256/3 dated 22 January 1986>
The activities listed below fall outside the scope of Article 11:
a)   Membership in parliament, a provincial general assembly, or a municipal assembly.
b)   <Amended as per Article 4667/9 dated 2 May 2001> Professorship and associate professorship in the field of law .
c)   Legal consultancy and permanent attorneyship with legal entities under private law, and salaried attorneyship in a law office.
d)   Arbitratorship, liduidatorship, or any duty or service assigned by or being rendered for judicial bodies or a judicial office.
e)   Position of president or member of the board of directors or auditor with state economic enterprises, public economic organisations and their affiliates, joint ventures and subsidiaries falling under the scope of Decree-Law, number 233, on State Economic Enterprises; as well as corporations other than state economic enterprises and public economic organisations whose capital is owned by the State or other legal entities, provided that engaging in another occupation or service is not prohibited as per the aforementioned Decree-Law.
f)   Partnership, board chairmanship, board membership, and auditorship in joint stock corporations, limited companies, and cooperative companies; and partnership in commandite.
g)   Board chairmanship, board membership, and auditorship in charitable, scientific, and political organizations.
h)   Publishership of a newspaper or a periodical publication or editorship of same.
The provisions of Law number 3069 on Activities Incompatible with Membership in the Grand National Assembly of Turkey are reserved as far as members of parliament are concerned.
<Amended as per Article 4667/9 dated 2 May 2001> Those indicated in Subparagraph e are prohibited from conducting court action against the Treasury, municipalities and provincial special administrations,  agencies and organizations under the management and supervision of provincial and municipal administrations, village legal entities, and companies and organizations with publicly owned stock. Likewise, provincial general assembly and municipal assembly members are prohibited from conducting court action against the legal entities they are associated with; and professors and associate professors in higher education are prohibited from conducting court action against institutions and organizations of higher education.
This prohibition also covers the partners of the attorneys concerned and the attorneys they employ.
Legal consultants and attorneys holding a post of employment in and receiving a regular salary or fee from the budget of the State, a province, or a municipality; or from agencies, organizations or companies under the management and supervision of the State, a province, or a municipality may practice attorneyship only in the affairs of these agencies, organizations or companies.

The attorney's relation of kinship or marriage with a judge or prosecutor
Article 13 – An attorney who is the spouse of a judge or a public prosecutor, or a legal or sanguinary ascendant or descendant, or a relative up to the second degree (included) may not practice attorneyship in lawsuits and legal action conducted by that judge or public prosecutor.

Prohibition from practicing attorneyship after termination of certain duties
Article 14 – <Amended as per Article 2178/4 dated 30 January 1979>
Civil, administrative, and military judges and prosecutors who have left their posts for such reasons as retirement or resignation are prohibited for two years as of the date of termination of their duties from practicing attorneyship in the jurisdictional area of the courts or offices where they served during the last five years.
The above provision will be applied also to members of the Constitutional Court and judges of the Appeal Courts.
<Amended as per Article 3256/4 dated 22 January 1986> Those employed by the State, a municipality, a provincial special administration, and the state economic enterprises, public economic organizations, and their affiliates, joint ventures and subsidiaries falling under the scope of the Decree-Law, number 233, on State Economic Enterprises may not take cases and conduct court action against their former employer within a period of two years following their departure.
<Amended as per Article 2442/1 dated 1 April 1981> The Chairperson of the Supreme Court of Military Appeals, the Chief Military Appeals Prosecutor, the Deputy Chairperson, department chiefs and members, the Chief of the Department of Military Justice Affairs at the Ministry of Defense of Turkey, the Chairperson of the Board of Inspectors of Military Justice, the Legal Consultant to the Turkish General Staff, martial law legal consultants, and the judges, prosecutors, and their deputies assigned to martial law military courts may not practice attorneyship in martial law military courts for three years after the termination of their duties even if they have been reassigned to other posts.
PART FOUR
Apprenticeship

General
Article 15 – <Amended as per Article 2178/4 dated 30 January 1979>
The duration of attorney apprenticeship is one year. The first six months are served in courts and the remaining six months with an attorney with a minimum of five years in the profession (this five-year period is calculated by including the time spent in the services mentioned in Article 4 of this Law.)
The courts and judicial offices where apprenticeship will be served and the manner how will be specified in the relevant regulations.

Qualifications required
Article 16 – <Amended as per Article 4667/11 dated 2 May 2001>
Of those having the qualifications stated in Article 3, Subparagraphs a, b, and f, the ones who do not have other engagements to keep them from serving an uninterrupted apprenticeship and are not impeded by the circumstances mentioned in Article 5 will apply in writing to the bar association where they will serve their apprenticeship.

Documents to be enclosed with the letter of application
Article 17 – The following documents will be enclosed with the letter of application to be submitted as per Article 16:
1. The originals and two certified copies each of the documents pertaining to the qualifications required by this Law.
2. A personal statement that the candidate is free of the circumstances mentioned in Article 3, Subparagraph f  and Article 5, Subparagraph a.
3. Written consent of the attorney with whom apprenticeship will be served.
4. A testimonial drawn up by two attorneys enrolled with the bar association concerned describing the candidate's moral character.
One copy each of these documents will be certified by the president of the bar association and forwarded to the Union of Bar Associations of Turkey. The other copy and the original will be kept in the candidate's file in the bar association concerned. The written consent of the attorney with whom apprenticeship will be served will not be sought in cases described in Article 22, Subparagraphs 2 and 3.
<Added as per Article 3256/5 dated 22 January 1986> The candidate requesting apprenticeship will be adjudged a penalty as per Article 528 of the Turkish Criminal Code if the personal statement submitted by him/her is discovered to be false.

Announcement of the request
Article 18 – The candidate's request will be announced within ten days of the date of request by being posted, together with the enclosures listed in the preceding Article, where suitable in the premises of the bar association or the judicial office for fifteen days.
Any attorney or apprentice or other parties may raise objections to the inclusion of the candidate in the apprentice roster. However, clear evidence or occurrences should be demonstrated in order that the objection be taken into consideration.

Report
Article 19 – Before the request is announced, the president of the bar association will task one of the lawyers enrolled with the bar association with preparing a report by investigating whether the candidate possesses the required qualifications and whether he/she is engaged in any activities incompatible with attorneyship.
The attorney thus tasked will be under the obligation to submit the report to the bar association within fifteen days at the latest.

Decision
Article 20 – Taking into account the report mentioned in Article 19, the board of directors of the bar association will make a decision with a rationale within one month as of the expiration of the objection period as to whether the candidate should be put in the apprentice roster. While the decision is communicated to the candidate, a copy is submitted to the local public prosecutor for review together with the candidate's personal file.
The members of the board of directors of the bar association may object to the decision within fifteen days as of the date of decision, the local public prosecutor as of the date of his/her receipt of the decision, and the candidate as of the date the decision was communicated to him/her.
The absence of a decision within the period mentioned in the first paragraph will mean that the request has been denied in which case the candidate may submit an objection to the Union of Bar Associations of Turkey within fifteen days as of the expiration of the one-month period.
<Amended as per Article 4667/12 dated 2 May 2001> The decisions made by the Union of Bar Associations of Turkey regarding the objections will become final if no decision is made by the Ministry of Justice within two months as of the date of receipt of the Union decisions by that Ministry or if the Union decisions are approved by the Ministry. However, the Ministry of Justice will return to the Union of Bar Associations of Turkey for reconsideration the decisions it does not find appropriate together with the reasons for returning. The decisions thus returned will be considered as approved if passed unchanged by a two thirds majority vote of the Board of Directors of the Union of Bar Associations of Turkey; otherwise they will be considered as not approved. The result will be communicated to the Ministry of Justice by the Union of Bar Associations of Turkey.
<Amended as per Article 4667/12 dated 2 May 2001> Suits may be filed with administrative tribunals by the Union of Bar Associations of Turkey, the candidate, and the bar association concerned against the decisions made by the Ministry of Justice in accordance with the preceding paragraph; and by the Ministry of Justice, the candidate, and the bar association concerned against the decisions made by the Union of Bar Associations of Turkey after reconsideration of the decisions found inappropriate and returned by the Ministry of Justice.

Commencement of apprenticeship
Article 21 – The attorney apprenticeship commences with the inclusion of the candidate in the apprentice roster. Objections will halt the inclusion process.

Attorney with whom apprenticeship will be served
Article 22 – Candidates approved by the local public prosecutor and recommended to the bar association to commence apprenticeship with an attorney will start working with the attorney indicated in their application as having already
accepted them.
Upon the request of the president of the bar association or the application of parties concerned, the board of directors of the bar association may decide to have an apprenticeship served with an attorney other than the one indicated in the candidate's application.
The president of the bar association will determine the attorneys with whom candidates who were unable to obtain the document mentioned in Article 17, Subparagraph 3 will serve their apprenticeship.
An attorney is under the obligation to accept a candidate assigned to serve apprenticeship with him/her as per the circumstances described in the second and third paragraphs above.

Serving the apprenticeship and the duties of the apprentice
Article 23 – <Amended as per Article 4667/13 dated 2 May 2001>
Apprenticeship is served without interruption. The days of absence with a valid excuse will be authorized to be served to completion by a decision of the judicial committee for apprenticeship in courts, and of the board of directors of the bar association for apprenticeship with an attorney, provided that such a request is made by the candidate within one month after the ending of the excuse.  In the presence of a valid excuse, the chairperson of the judicial committee or the president of the bar association, depending on where apprenticeship is being served, may grant the candidate a leave of absence not to exceed thirty days by receiving also the opinion of the attorney with whom the apprenticeship is being served.
The apprentice is under the obligation to attend hearings together with the attorney, to conduct the attorney's business with courts and administrative offices, to manage lawsuit files and correspondence, to participate in training activities organized by the bar association, and to perform other tasks assigned by the board of directors of the bar association and to be designated in regulations . Apprentices have to abide by the rules of the profession and the principles set forth in regulations.

Apprenticeship reports
Article 24 – <Amended as per Article 2178/5 dated 30 January 1979>
Apprenticeship will be served under the supervision of the judicial committee, the bar association, and the host attorney.
The judges and public prosecutors with whom the apprentice serves will issue a report evaluating his/her performance as an apprentice, professional interest, and moral character.
The host attorney will issue a report at the end of the first three months and a final one at the completion of the apprenticeship period evaluating the performance of the apprentice, his/her professional interest, and moral character.

Extension of the duration of apprenticeship
Article 25 – <Amended as per Article 4667/14 dated 2 May 2001>
After studying the reports issued about the apprentice and, if necessary, taking into consideration the outcome of a review to be conducted by a designated board member, the board of directors of the bar association may decide to issue an apprenticeship completion certificate or to extend the duration of the apprenticeship by up to six months.
This decision of the board of directors is final.

Tasks that apprentices may perform
Article 26 – <Amended as per Article 4667/15 dated 2 May 2001>
After starting apprenticeship with an attorney, apprentices may, with the written consent and under the supervision and responsibility of the latter, attend hearings concerning the court actions and other business being conducted by their host attorney in civil courts of peace, criminal courts of peace, and enforcement courts as well as conduct business at enforcement offices.
This power will terminate with the issuance of the apprenticeship completion certificate or deletion from the apprentice roster.

Bar associations' aid to apprentices
Article 27 – <Amended as per Article 4667/16 dated 2 May 2001>
The Union of Bar Associations of Turkey will loan money to apprentices throughout the duration of apprenticeship.
The source of the loans to be paid is the cost of the revenue stamps attorneys will affix to the powers of attorney to be presented to authorities concerned and the money coming in from repayments and their revenues. The revenue stamps are printed by the Union of Bar Associations of Turkey. The nominal value of the revenue stamps to be affixed is equal to the value in the tariffs used for the sample powers of attorney in the chapter on Judicial Fees of the Law of Charges Number 492 dated 2 July 1964.
Authorities to whom attorneys present powers of attorney may not accept powers of attorney not bearing any revenue stamps or those bearing less than the specified amounts. Where necessary, the person submitting the power of attorney will be granted ten days during which to complete the outstanding amount of revenue stamps. The power of attorney will not be pocessed unless the outstanding amount is completed within this period.
Any amount remaining after the payment of credit to apprentices will be spent for supporting colleagues and promoting the profession.
The policy of this credit and the conditions for entitlement, the definition of the beneficiaries, the manner of repayment, the principles for dividing between bar associations and the Union of Bar Associations of Turkey, and spending, the money coming in from repayments and the amount remaining after credit payments, and other points will be stipulated in the regulations  to be prepared by the Board of Directors of the Union of Bar Associations of Turkey and to be approved by the Ministry of Justice.
The division and expenditure of the cost of the revenue stamps, the money coming in from credit repayments and their revenues, and the amount remaining after credit payments will be audited annually by the Ministry of Justice in accordance with the terms and procedures set forth in Supplemetary Article 4.

PART FIVE
Attorneyship Examination

Examination
Article 28 – <Abolished as per Article 2178/8 dated 30 January 1979 – Amended as per Article 4667/17 dated 2 May 2001>
The attorneyship examination is commissioned to the Student Selection and Placement Center (ÖSYM) by the Union of Bar Associations of Turkey. Those who have not received an apprenticeship completion certificate will not be allowed to take the examination.

Eligibility for the examination
Article 29 – <Abolished as per Article 2178/8 dated 30 January 1979 – Amended as per Article 4667/18 dated 2 May 2001>
Those who are eligible for the examination will be issued an examination application form by the board of directors of the bar association in whose apprentice roster they are registered. A list of apprentices thus issued application forms will be submitted to the Union of Bar Associations of Turkey.
An apprentice who has failed six times in the attorneyship examination will not be allowed to take the examination again.
Circumstances where a valid excuse is recognized by the Union of Bar Associations of Turkey notwithstanding, apprentices will have four years to use all of their chances to take the examination as of the date the apprenticeship completion certificate was issued.

The nature and topics of the examination
Article 30 – <Abolished as per Article 2178/8 dated 30 January 1979 – Amended as per Article 4667/19 dated 2 May 2001>
The purpose of the attorneyship examination is to evaluate the apprentices' knowledge of professional rules and their proficiency in applying legal principles and jurisprudence to cases.
The examination is given twice a year.  The examination dates are determined by dividing the year into two equal parts to the extent possible.
The determination and announcement of examination dates, the examination topics, passing grade, expenditures etc. will be indicated in regulations  to be promulgated by the Union of Bar Associations of Turkey.


Examination results
Article 31 – <Abolished as per Article 2178/8 dated 30 January 1979 – Amended as per Article 4667/20 dated 2 May 2001>
Examination results will be communicated to the Union of Bar Associations of Turkey, the respective bar associations of the apprentices, and the apprentices themselves by the Student Selection and Placement Center (ÖSYM).

Articles 32-33 – <Abolished as per Article 2178/8 dated 30 January 1979>


PART SIX
The Rights And Duties Of The Attorney

General
Article 34 – <Amended as per Article 4667/21 dated 2 May 2001>
Attorneys are under the obligation to carry out the duties they assume with care, accuracy, and integrity in a manner becoming the sacredness of their profession; to comport themselves in a manner suitable to the respect and trust the profession requires; and the comply with the professional rules set by the Union of Bar Associations of Turkey.

Work exclusive to attorneys
Article 35 – <Amended as per Article 1238/1 dated 26 February 1970>
Providing opinion in legal matters; litigating and defending the rights of real persons and legal entities before courts, arbitrators, and other bodies invested with jurisdictional powers; and managing all documentation associated therewith are the sole prerogative of attorneys enrolled with bar associations.
Attorneys enrolled with bar associations may conduct all types of action with public offices other than those mentioned in the first paragraph.
Every person with the capacity to sue may prepare the documents for his/her own lawsuit, file suit in person, and conduct his/her own business in courts. <Supplementary provisions: Article 4667/22 dated 2 May 2001> However, joint stock companies with an original capital five times the amount of original capital stipulated in Article 272 of the Turkish Commercial Code, Number 6762 dated 29 June 1956, or more; and building cooperatives with one hundred or more members are required to retain a lawyer under contract. Organizations failing to comply with the provisions of this paragraph will be penalized by the highest ranking local government officer with a fine in the gross amount of one month's minimum wage, effective for workers in the industrial sector older than sixteen years of age on the date of the crime, for each month spent without a lawyer under contract. The fine penalties will be communicated to those concerned in accordance with the provisions of the Service of Process Law. These penalties may be objected to with the criminal court of peace having jurisdiction within a maximum of seven days as of the date of notification. The decision made concerning the objection will be final. The fines  are collected as per Law number 6183 dated 21 July 1953 on the Procedure of Collecting Money Owed to the State and marked as revenue to the treasury of the Republic of Turkey .
The provisions of the Codes of Civil and Criminal Procedure and other laws are reserved.


Seeking conciliation
Article 35/A – <Amended as per Article 4667/23 dated 2 May 2001>
In actions and cases that have been entrusted to them, attorneys, together with their clients, may invite the other party to conciliation before a suit has been filed or before hearings have commenced for an already filed suit, provided that such conciliation pertains exclusively to matters that the parties may elicit of their own will. If the other party takes up the invitation and conciliation is reached, the subject of the conciliation, its place and date, and the actions that each party will  carry out are laid out in a memorandum and signed jointly by the attorneys and the clients. Such memoranda are in the nature of a court decision in the sense of Article 38 of the Enforcement and Bankruptcy Law, number 2004, dated 9 June 1932.

Keeping information confidential
Article 36 – Attorneys are prohibited from disclosing information that has been entrusted to them or that they come upon in the course of performing their duties both as an attorney and as members of the Union of Bar Associations of Turkey and various bodies of bar associations.
Attorneys' testification on matters mentioned in the first paragraph is contingent upon their having received the client's consent. However, even with this condition satisfied, the attorney may refrain from testification. <Additional sentence as per Article 4667/24 dated 2 May 2001> Exercising the right to refrain will not entail legal and criminal responsibility.
The foregoing provisions apply to the clerks employed by the Union of Bar Associations of Turkey and bar associations, as well.

Notification of refusal of commission
Article 37 – Attorneys may refuse without stating a reason a commission offered to them. The refusal must be communicated to the client without delay.
A person whose offer of commission has been refused by two attorneys may request the president of the bar association to assign an attorney for him/her.
<Amended as per Article 4667/25 dated 2 May 2001> The attorney thus assigned is under the obligation to render services at the fee decided by the president of the bar association.

Statutory refusal of commission
Article 38 – Attorneys are under the obligation to refuse a commission if,
a) They find the commission irregular or unjust when it is offered, or later arrive at this conclusion;
b) They have given their services or opinion as an attorney to a party with conflicting interests in the commission offered;
c) <Amended as per Article 4667/26 dated 2 May 2001> They have previously been involved in the commission offered as judge, arbitrator, public prosecutor, expert witness, or clerk;
d) They find themselves in the position of claiming the invalidity of a bond or a contract drawn up earlier by themselves;
e) <abolished as per Constitutional Court decision 43/84 dated 2 June 1977>
f) The commission they have been offered contradicts the policy of professional solidarity and order laid down by the Union of Bar Associations of Turkey.
The circumstances for statutory refusal apply to the attorneys' partners and other attorneys in their employ.
<Third paragraph abolished as per Constitutional Court decision 19/9 dated 21 January 1971>
<Last paragraph abolished as per Constitutional Court decision 43/84 dated 2 June 1977>

Attorneys' right to keep documents and lien
Article 39 – Attorneys are under the obligation to keep the documents given to them for three years after the termination of their commission. However, if a written notice has been sent to the client to retrieve his/her documents, such obligation will cease to exist at the end of three months as of the date of such notice.
Attorneys are not obligated to return the documents in their keeping unless they have received their fee and have been reimbursed for their expenses.

Statute of limitations in claims for damages
Article 40 – <Amended as per Article 4667/27 dated 2 May 2001>
Claims for damages made by the client on the basis of the contract will be abated one year after the date of first knowledge of the acquisition of this right and in any case after five years from the event causing the damages.

Resignation from rendering services
Article 41 – The representation duty of an attorney who resigns from rendering a specific service or from defense of his own volition will continue for fifteen days as of the date the attorney informs the client of the situation.
However, an attorney assigned by the legal aid office or the president of the bar association may not desist from performing this duty in the absence of force majeure or a valid excuse. The evaluation of the force majeure or the valid excuse is at the discretion of the authority assigning the attorney.

Temporary assignment of an attorney
Article 42 – In the event of an attorney's death, or dismissal from the profession or the commission, or prohibition from practice, or temporary incapacitation, the president of the bar association will assign another attorney to temporarily render and take charge of services by receiving the written consent of the client(s) and will have the files transferred to the him/her. <Additional sentence as per Article 4667/28 dated 2 May 2001> The president will also report the situation to the courts and other parties he/she may consider necessary. These provisions will also apply to attorney partnerships by analogy.
The statutory periods for the actions stated in the above paragraph will not  commence until the files are submitted. However, such period may not exceed three months.
<Abolished as per Article 4667/28 dated 2 May 2001>
The newly assigned attorney may refuse the assignment by giving just reasons. It is at the discretion of the board of directors of the bar association to decide whether the reasons given are just.
The representation duty will proceed under the responsibility of the attorney who has assumed this duty and will not be contingent upon the instructions of the represented attorney. The fee for the work done will be paid by the attorney represented. The amount of the fee will be determined by the board of directors of the bar association in the event of a dispute.

Requirement to establish office
Article 43 – Every attorney is under the obligation to establish an office in the jurisdictional area of the bar association in whose directory he/she is enrolled. The specifications of the office will be defined by the bar association.
An attorney may not have more than one office. Attorneys working together may not have separate offices. <Additional sentences: Article 4667/29 dated 2 May 2001> An attorney partnership may not open a branch in Turkey. Members of parliament may not practice attorneyship during their term in parliament.
Attorneys moving their residence or office must inform the bar association of their new addresses within one week.

Attorneys working together or as an attorney partnership
Article 44 – <Amended as per Article 4667/30 dated 2 May 2001>
Attorneys may practice their profession together in the same office or as an attorney partnership.
A)   Working together in the same office
Working together is when more than one attorney enrolled with the same bar association practice their profession using the same office. Such togetherness does not make a legal entity; nor is the work done considered commercial.
It is mandatory to juxtapose the expression "Attorneyship Office" with the name(s) and/or last name(s) of one or several of the attorneys working together. The mutual rights and obligations, the sharing of revenues and expenditures, office management, and the termination of togetherness are defined by those working together and submitted in writing to the bar association they are enrolled with.
B) Attorney partnership
An attorney partnership is a legal entity formed by more than one attorney enrolled with the same bar association to practice their profession in accordance with the present Law. The work done by an attorney partnership is professional and not considered commercial. It is subject to the same provisions as applied to privately owned companies as far as taxation is concerned. The name of the attorney partnership is made up by the addition of the expression "Attorney Partnership" to the name(s) and/or last name(s) of one or several partners. Foreign attorney partnerships wishing to operate in Turkey within the framework of the current laws on incentives for foreign capital may only offer services of consultancy in foreign laws and international law provided that they have been formed in compliance with the present Law and the arrangements stipulated for attorney partnerships. This restriction also applies to attorneys who are citizens of the Republic of Turkey or of foreign countries working for the foreign attorney partnership. The condition that the partners be enrolled with a bar association is not required for this type of attorney partnerships. The implementation of this rule is contingent upon reciprocality.
An attorney partnership with a basic contract modelled after the standard basic contract assumes legal personality upon being recorded in the Attorney Partnership Register of the Bar Association by the board of directors of the bar association with which its partners are enrolled. A request for registration may only be refused on the grounds of discordance with the present Law and the standard basic contract. In such a case, the provisions of Article 8 will be applied by analogy. A copy of the basic contract will be forwarded to the Union of Bar Associations of Turkey.
a) The rights and liabilities of the partners
1. The shares and percentages of partnership are determined freely. Partners may transfer their shares only to partners or third parties that are attorneys. In the event that a partner is prohibited from transferring his/her shares by the contract, or the other partners do not approve the transfer of the shares, or an inheritor is not an attorney or disclaims the inheritance, or the partner discontinues his/her practice because of retirement or health reasons, or is deleted from the directory of the bar association, or quits or is dismissed from the profession, or his/her share is attached, his/her share in the partnership will be bought by the other partners at its basis value in proportion to their shares. The provisions for liquidation in the regulations will be applied if the transfer actions are not concluded within three months.
2. Powers of attorney are drawn up in the name of the partnership. The partnership issues a document of authorization to the attorneys charged with conducting court action.
3. An attorney partnership may not acquire privileges or property outside its purpose; may not establish partnerships with third parties; and may not take over the shares of legal entities. The partners may not be partner to more than one attorney partnership; may not have an office other than that of the partnership; and may not conduct court action on a freelance basis.
4. An attorney partnership carries unlimited joint and several liability together with its partners and the attorneys it employs for all their actions, deeds, and debts connected with the partnership. The responsibilities of the partners and the attorneys the partnership employs regarding their professional duties are reserved under the Attorneyship Law and professional rules. The disciplinary actions and penalties in the present Law will be applied to attorney partnerships, as well.
5. The partner charged with the management and representation of the partnership will be responsible for the keeping of books and records. Attorney partnerships must keep a lawsuits and actions book, a shares book, a decisions book, a revenues and expenses book, and a fixtures book.
b) Settlement of disputes
Any and all disputes to arise between attorneys working together, or between attorneys in partnership in connection with their mutual affairs with one another, the affairs of the partnership, or affairs with third parties regarding price in the transfer and succession of partnership shares will be settled in accordance with the provisions of the present Law and relevant regulations by the board of arbitration defined in Article 167 of the present Law.
c) The legal and formal conditions of points which must be addressed in the standard basic contract of the attorney partnership such as the identification data of the partners, the title and address of the partnership, the shares in partnership, the relationship between the partners, the division of labor concerning lawsuits and cases, the powers of the managing partners, the management and representation of the partnership, [the board of partmers, the terms of reference of the [board], the sharing of revenues and expenditures, auditing, leaving the partnership, dismissal from the partnership, transfer of shares, termination of the partnership, voluntary and statutory dissolution, and liquidation will be provided for in the regulations  prepared by the Union of Bar Associations of Turkey and published in the Official Gazette after approval by the Ministry of Justice.

Persons eligible for employment in attorney offices
Article 45 – <Amended as per Article 4667/31 dated 2 May 2001>
Attorneys and attorney partnerships may only employ help that is required for the profession of attorneyship in their offices.
Persons convicted of one of the crimes that are an impediment to attorneyship may not be collaborated with or employed in attorneys' offices by any means.
<Amended as per Article 4667/31 dated 2 May 2001> Failure to abide by the foregoing provisions will be punished with dismissal from the job in the first instance and from the profession upon reoccurrence in the case of attorneys; and dismissal from the job in the first instance and deletion from the attorney partnership register upon reoccurrence in the case of attorney partnerships.

Conducting legal business, review of lawsuit files, and obtaining copies of documents by apprentices or secretaries
Article 46 – <Amended as per Article 4667/32 dated 2 May 2001>
An attorney may have his legal business conducted and have facsimiles of documents obtained by photocopying or other means by the apprentice under his responsibility or by the secretary working for him/her. The copies that the attorney does not want approved are not subject to charges.
The attorney or the apprentice may review lawsuit and legal action files without a power of attorney. A request for review of files must be fulfilled by those concerned. Attorneys not presenting a power of attorney may not obtain copies or photocopies of the papers and documents in the files.

Prohibition of appropriation of contested rights
Article 47 – Attorneys are prohibited from acquiring or mediating in the acquisition of contested rights. This prohibition remains effective for one year after the termination of the service.
The provision in the first paragraph also covers the attorney's partners and the attorneys in his employ.
<Added as per Article 4667/33 dated 2 May 2001> However, the provisions of Article 164 are reserved.

Offering an attorney commission in exchange for personal interest
Article 48 – Persons who mediate in soliciting commission for an attorney in exchange for a fee or any kind of gain promised or given by the attorney or the client, and attorneys who resort to the services of an agent will be punished with imprisonment from six months to one year.
The imprisonment sentence may not be less than one year in the event the perpetrators are public servants.

Official attire of attorneys
Article 49 – Attorneys are under the obligation to be dressed in the official attire designated by the Union of Bar Associations of Turkey when they appear in court.

Space to be allocated to the bar association and attorneys
Article 50 – It is obligatory to allocate adequate space for the use of the local bar association in every judicial office and for attorneys in every courtroom and enforcement office.
<Added as per Article 4667/34 dated 2 May 2001> Additionally, a consultation room appropriate to the respectability and importance of the profession will be designated in every jailhouse and police station. The repair and maintenance of these rooms will be undertaken by the Ministry of Justice or the Ministry of Interior Affairs depending on the subordination.

Places inappropriate for conducting consultation
Article 51 – Attorneys are prohibited from conducting legal consultation with clients and offering their services in places other than their offices registered with the bar association, in courtrooms, and anywhere else in the premises of the justice hall.
The provision in the foregoing paragraph is not applied in the event the attorney is expressly summoned.

Keeping files
Article 52 – Attorneys are under the obligation to keep regular files on every commission they receive or every point they provide an opinion on.
Attorneys are under the obligation to sign every document written or drafted by themselves.

Minutes of discussions
Article 53 – Attorneys will note down in a memorandum the salient points of the discussions they hold in connection with their services which they think are important. The memorandum is signed at the bottom by those present at the discussion.

Register book
Article 54 – A register book patterned after a sample to be provided by the Union of Bar Associations of Turkey will be kept for every attorney in the bar association he/she is enrolled with. Albeit confidential, this register book may be viewed and notes taken from its contents at any time by its owner or another attorney duly authorized by the owner.
In the event of the owner's transfer to another bar association, the register book is forwarded to the president of the receiving bar association.

Prohibition of publicity
Article 55 – Attorneys are prohibited from engaging in any kind of activity or enterprise which may be regarded as being in the nature of publicity in order to offer their services and particularly from displaying any other title than that of attorney and their academic titles in their signs and letterheads.
<Additional paragraphs as per Article 4667/35 dated 2 May 2001>
This prohibition also applies to the attorneys sharing an office and to attorney partnerships.
The provisions governing the above prohibitions will be determined by means of regulations  to be prepared by the Union of Bar Associations of Turkey.

The right to obtain copies and to serve notice
Article 56 – Powers of attorney properly drawn up and given to an attorney will be kept in the file mentioned in Article 52. An attorney may produce a facsimile of a power of attorney and use it by certifying its authenticity with his/her signature. Copies of powers of attorney produced by attorneys bear the nature of an official copy for all judicial bodies, public offices and organizations, and private and legal entities.
Where an original document is not expressly required by law, attorneys may present copies of all manner of papers and documents to judicial bodies and other legal offices in the legal business they conduct by authenticating the copies themselves.
An attorney authenticating copies of powers of attorney or of other papers and documents lacking an original or presenting a copy not reflecting the original will be punished by heavy imprisonment from three to six years.
Attorneys may deliver judicial papers and documents to the opposite party in cases where they have been appointed as attorneys through the judicial body concerned and in the absence of any decision by this judicial body regarding service of process. One copy each of the documents thus delivered will be inserted in the files of the judicial body concerned provided that the required charges, taxes, and duties have been paid.
<Additional paragraphs as per Article 4667/36 dated 2 May 2001>
Attorneys or attorney partnerships may give another attorney or attorney partnership a certificate of authorization that will pass for a power of attorney covering all the powers of attorney authorizing the former to delegate agents. Such certificates of authorization bear the strength of a power of attorney.
Powers of attorney are in standard form for Turkey, and their form and content are designed by the Union of Bar Associations of Turkey and the Union of Notaries Public of Turkey.

Crimes against attorneys
Article 57 – Crimes committed against attorneys during or in connection with the performance of their duties will be subject to the same provisions as if they were committed against judges.

Public prosecutor with the power to conduct investigation
Article 58 – <First paragraph amended as per Article 4667/37 dated 2 May 2001>
Investigations on attorneys induced by crimes arising in connection with their practice of attorneyship, or their duties with the organs of the Union of Bar Associations of Turkey or bar associations, or the crimes they commit during the performance of their duties will be conducted by the public prosecutor in the jurisdictional area where the crime is committed, upon the permission of the Ministry of Justice. Attorneys' offices and residences may be searched only with a court warrant and to the extent jsutifiable by the nature of the event stated therein, under the supervision of the public prosecutor, and with a representative of the bar association in attendance. Cases of flagrante delicto calling for heavy punishment notwithstanding, an attorney's person may not be searched.
The provisions of the Code of Civil Procedure and the Code of Criminal Procedure governing the order of trials  are reserved. However, attorneys may not be detained, nor may they be sentenced to light penalties or light fines.

Permission to prosecute, decision to initiate final investigation, and the court where trial will be held
Article 59 – The file for the investigation conducted in accordance with Article 58 will be delivered to the Directorate General of Criminal Affairs of the Ministry of Justice. Should a prosecution be considered necessary as a result of the review of the file, the file will be sent to the office of the public prosecutor of the high criminal court nearest the high criminal court in whose jurisdictional area the crime was committed.
The public prosecutor will prepare an indictment within five days and forward the file to the high criminal court for a decision as to whether the initiation of a final investigation is required or not.
A copy of the indictment is delivered to the attorney on whom a prosecution is being conducted in accordance with the provisions of the Code of Criminal Procedure. Should the attorney request, within the statutory period after the delivery of the indictment, collection of certain evidence or make any other reasonable request, such will be taken into consideration and the investigation may be deepened by the chairperson of the court.
The trials of attorneys on whom a final investigation is decided to be initiated will be held in the high criminal court of the location where the crime was committed. <Supplementary sentence: Article 4667/38 dated 2 May 2001> The situation will be reported to the bar association with which the attorney is enrolled.

Right of objection
Article 60 – The public prosecutor or the accused may object in accordance with general provisions to the decisions of the courts cited in Article 59 regarding detention or release or the decision not to initiate a final investigation.
Such objection will be reviewed by the high criminal court nearest the court which passed the contested decision, excluding the high criminal court in the location where the crime was committed.

Flagrante delicto warranting heavy punishment
Article 61 – <Amended as per Article 4667/39 dated 2 May 2001> In cases of flagrante delicto warranting heavy punishment, the preliminary investigation will be conducted by the public prosecutor in person in accordance with general provisions.

Negligence of duty and abuse of power
Article 62 – Attorneys who neglect the duties they are assigned and abuse the power conferred upon them either by virtue of their attorneyship or as members in the various organs of the Union of Bar Associations of Turkey or bar associations in accordance with the present Law or other laws (in any manner whatsoever) with the exception of the circumstances stated in Articles 294 and 295 of the Turkish Criminal Code will be punished as provided for in Articles 230 and 240 of the Turkish Criminal Code.

Exclusivity to attorneys of the exercise of attorneyship powers
Article 63 – Attorneys not entered in the directory of the bar association and those prohibited from practice may not prepare lawsuit documents for individuals other than themselves, may not follow up enforcement actions, and may not exercise any other powers associated with attorneyship. Those who do not appear on the directory may not use the title of attorney, either . <Additional sentence as per Article 4667/40 dated 2 May 2001> However, of the attorneys who have completed twenty years on the directory, those who have closed down their office and had their tax records deleted may continue to use only the title of attorney provided that they report their status and fulfill their duties and obligations to the bar association.
<Amended as per Article 3256/7 dated 22 January 1986> Those who violate the provision in the first paragraph above will be punished with heavy fine from one hundred thousand to one million Turkish Liras, and imprisonment from six months to one year.
<Amended as per Article 3256/7 dated 22 January 1986> Those who exercise the powers exclusive to attorneys by taking over claims on the basis of feigned methods or by abusing other rights granted by law although not authorized to practice attorneyship will be punished with imprisonment from one to three years and heavy fine from five hundred thousand to five million Turkish Liras.
Courts, enforcement and bankruptcy offices, and bar associations are under the obligation to notify the public prosecutor when an incident falling under the scope of this Article comes to their knowledge. The result of the prosecution to be conducted will be reported to the bar association.

Special duties toward the board of directors of the bar association
Article 64 – In matters pertaining to inspections and objections, attorneys are under the obligation to furnish information and deliver the relevant files upon request to the president of the bar association, the board of directors, or one of the members assigned by them; and to make himself/herself present when invited for a hearing by the president of the bar association, the board of directors, or one of the board members to the extent that this does not contradict the obligation to keep professional information confidential prescribed by the present Law.
<Amended as per Article 3256/8 dated 22 January 1986> The board of directors of the bar association may impose a fine from ten thousand to one hundred thousand Turkish Liras on an attorney who fails to fulfill the obligation stated in the first paragraph above. This punishment may be re-imposed at every instance of nonacceptance of a request or an invitation. However, the letter of request or invitation must include a statement that nonacceptance is punishable by a fine.
Objections may be raised against the imposition of the fine with the board of directors of the bar association within fifteen days as of the date of notification. The decision of the board of directors of the bar association  will be final.
The fines imposed in accordance with the provisions in the above paragraphs will be collected in accordance with the provisions of the present Law concerning disciplinary penalties and marked as revenue for the bar association.

Persistence in non-payment of bar association dues
Article 65 – The annual dues fixed by the general assembly will be paid in two equal installments in the months of January and September every year. A default penalty at the monthly rate of five percent will be charged for payments overdue.
An attorney may not participate in the general assembly of the bar association or exercise his/her right to vote and be elected unless he/she has paid his/her annual dues.
The names of attorneys and attorney partnerships persisting in the non-payment of their annual dues without a reasonable excuse despite service of notice will be removed from the directory and register by the decision of the board of directors of the bar association until they pay their debts together with the default penalty, and the situation will be reported to whom it may concern. The debts of attorneys and attorney partnerships falling into such status will be collected through legal channels.

PART SEVEN
Bar Association Directory And Attorney Roster

Obligation for entry in the directory
Article 66 – Every attorney is under the obligation to be entered in the directory of the bar association in whose jurisdictional area he/she will practice attorneyship on a permanent basis.
An attorney who is entered in the directory of a bar association is authorized to practice attorneyship in any part of Turkey provided that such practice is not on a permanent basis.

Permanent practice of attorneyship in another jurisdictional area
Article 67 – Should an attorney practice attorneyship on a permanent basis outside the jurisdictional area of the bar association in whose directory he/she is entered or is engaged in an activity punishable by disciplinary penalty, a memorandum to be drawn up by the board of directors of the bar association in that location will be sent for action to the bar association in whose directory he/she is entered.

Transfer to another bar association
Article 68 – Request for transfer from one bar association to another will be made in writing to the board of directors of the bar association  in whose directory entry is requested.
The documents to be enclosed with the request for transfer and the procedures to be applied to transfer will be prescribed in regulations.

Review and approval of request for transfer
Article 69 – The board of directors of the bar association to which transfer is requested will conduct all kinds of review and actions it deems necessary concerning the requesting attorney, particularly asking the bar association in whose directory the attorney is currently entered whether he/she is under disciplinary prosecution and owes money to the bar association. No action may be taken before the conclusion of the disciplinary prosecution and the payment of the attorney's debt to the bar association.
In the event of the acceptance of the request for transfer, the decision will be communicated promptly by the board of directors of the receiving bar association to the Union of Bar Associations of Turkey and the bar association the attorney is leaving.

Refusal of request for transfer
Article 70 – In the event of the rejection of the request for transfer by the bar association to which transfer is sought, the attorney requesting transfer may raise an objection with the Union of Bar Associations of Turkey within fifteen days as of the date the decision is communicated to him/her.
The request will be considered as having been rejected if the board of directors of the bar association does not make a decision within one month as of the date of receipt of the request for transfer. In such a case, the attorney concerned may raise an objection with the Union of Bar Associations of Turkey within fifteen days as of the expiration of the one-month period.
The decisions to be made by the Union of Bar Associations of Turkey on objections will be final. The attorney concerned may appeal to the administrative judicial authorities regarding these decisions.
The objection will be considered as having been rejected if the Union of Bar Associations of Turkey does not make a decision within three months as of the date of receipt of the letter of objection.
If the Union of Bar Associations of Turkey decides to uphold the objection, it will promptly communicate this decision to the receiving bar association and the one the attorney is leaving.

Deletion from directory and the register of the attorney partnership
Article 71– <Amended as per Article 4667/42 dated 2 May 2001> The decision on deletion from directory and the register of the attorney partnership will be made by the board of directors of the bar association with which the attorney or the attorney partnership is enrolled.
Although a written response is requested of the attorney prior to such a decision, it is essential that the attorney has been heard by the board or has not comğlied with an invitation to a hearing within the designated period. Similarly, for a decision to be made in the case of attorney partnerships, it is essential that a partner to be appointed by the partnership has been heard by the board or the partnership has not complied with an invitation to a hearing.
The decision on deletion from directory and the register of the attorney partnership will be reasoned. The attorney or the attorney partnership may raise an objection to this decision with the Union of Bar Associations of Turkey within fifteen days as of the date of notice. The decisions made by the Union of Bar Associations of Turkey on the objections will become final if no decision is made by the Ministry of Justice within two months as of the date of their receipt by the Ministry of Justice or if the decisions are approved. However, the Ministry of Justice will return the decisions it does not deem appropriate to the Union of Bar Associations of Turkey for reconsideration together with the reasons for return. The decisions thus returned will be considered as approved if passed unchanged by a two thirds majority vote of the Board of Directors of the Union of Bar Associations of Turkey; otherwise they will be considered as not approved. The result will be communicated to the Ministry of Justice by the Union of Bar Associations of Turkey. The provisions of the sixth and seventh paragraphs of Article 8 will be applied here, as well, by analogy.
The attorney or the attorney partnership concerned will have the right to continue their practice of attorneyship until the decision on deletion from directory or the register of the attorney partnership becomes final. However, the disciplinary board of the bar association may temporarily prohibit the attorney or the attorney partnership from practice in the event it is deemed prejudicial to have them continue their practice until the decision on deletion from directory or the register of the attorney partnership becomes final.

Circumstances necessitating deletion from directory
Article 72 – The attorney's name will be deleted from the directory under the following circumstances:
a) Loss at a later date of the qualifications required as per this Law for admission into attorneyship.
b) Discovery at a later date of reasons present at the time the license was issued which would constitute grounds for denial of the license.
c) <Amended as per Article 4667/43 dated 2 May 2001> An office not being opened in the jurisdictional area of the bar association concerned within three months; or the closing down of the office or its relocation outside the jurisdictional area of the bar association concerned; or the failure, despite reminders, of the attorney to enroll with another bar association in whose jurisdictional area he/she practices attorneyship on a permanent basis.
d) <Amended as per Article 4667/43 dated 2 May 2001> Default in the payment of annual dues to the bar association and the Union of Bar Associations of Turkey or in the repayment of apprenticeship credit despite service of notice.
e) Voluntary departure from the profession.
f) Default in the payment of group insurance premiums at the times indicated in the group policy.
g) <Added as per Article 3256/9 dated 22 January 1986> Being entered in the directory despite the impediment stated in Article 10.
<Additional paragraphs as per Article 3256/9 dated 22 January 1986>
However, an attorney discovered later than five years after the date of issuance of his/her license to have been engaged in one of the activities listed in Article 11, with the exception of activities incompatible with the respectability of the profession, may be re-entered in the directory if he/she pays the bar association three times the amount of the payments or revenues he/she has received during the apprenticeship period.
The bar association may desist from inviting the attorney for a hearing if the office address submitted to the bar association is vacated and a new address not submitted.

Right of re-entry in the directory
Article 73 – An attorney proving the discontinuation of the circumstances necessitating deletion from the directory will gain the right to be re-entered in the directory. However, the board of directors of the bar association may, if it deems necessary and by explaining the reasons, require the attorney requesting re-entry in the directory, to prove the presence of all or part of the qualifications sought for the initial entry.
With the exception of the provision on the issuance of licenses, Articles 7, 8, and 9 of the present Law will be applied by analogy to requests for re-entry in the directory.
An attorney whose re-entry in the directory has been approved by the bar association with which he/she was formerly enrolled will not be required to pay admission dues one more time.

Permanent deletion from the directory
Article 74 – The licenses of those dismissed from the profession by a criminal or disciplinary sentence and those finally convicted of crimes stated in Article 5, Subparagraph a will be withdrawn and cancelled by the board of directors of the bar association  and their names permanently deleted from the directory.
Execution of such actions is contingent upon the decision or conviction becoming final.
<Amended as per Article 4667/44 dated 2 May 2001> The attorney may raise an objection to the decision made by the board of directors of the bar association with the Union of Bar Associations of Turkey within fifteen days as of the date of notice. The decisions made by the Union of Bar Associations of Turkey on the objections will become final if no decision is made by the Ministry of Justice within two months as of the date of their receipt by the Ministry of Justice or if the decisions are approved. However, the Ministry of Justice will return the decisions it does not deem appropriate to the Union of Bar Associations of Turkey for reconsideration together with the reasons for return. The decisions thus returned will be considered as approved if passed unchanged by a two thirds majority vote of the Board of Directors of the Union of Bar Associations of Turkey; otherwise they will be considered as not approved. The result will be communicated to the Ministry of Justice by the Union of Bar Associations of Turkey. The provisions of the sixth and seventh paragraphs of Article 8 will be applied here, as well, by analogy.

Attorney roster
Article 75 – <Amended as per Article 3256/10 dated 22 January 1986> Every three years, the board of directors of the bar association will prepare a roster of all attorneys within its jurisdictional area and entered in its directory as recently as the date of 31 December of the third year. The roster will include the names and last names of all attorneys in alphabetical order, and the addresses of their offices and residences. The offices of attorneys sharing the same office and attorney partnerships will also be indicated separately in the roster. Changes to the roster will appear in an amendment roster to be prepared as of the end of every year.
The format of the roster will be determined by the Union of Bar Associations of Turkey.
Those who are entered in the directory after the roster has been completed will be issued a temporary certificate for use until the preparation of the next roster.
An adequate number of copies of the roster will be forwarded to the Constitutional Court, the Appeal Courts, the Ministry of Justice, the Union of Bar Associations of Turkey, other bar associations, the courts and public prosecutors within the jurisdictional area of the bar association, the highest ranking government official, other judicial bodies, notaries public, enforcement and bankruptcy offices.


PART EIGHT
Bar Associations

SECTION ONE
General Provisions

Establishment and nature of bar associations
Article 76 – Bar associations are professional organizations in the nature of public agencies with legal personality operating on the basis of democratic principles by conducting the whole range of activities for the purpose of promoting the profession of attorneyship; ensuring honesty and confidence in the mutual relations between the members of the profession and their relations with clients; defending and safeguarding the order, ethics, and respectability of the profession, the supremacy of the law, and human rights; and to satisfy the common needs of attorneys.
<Amended as per Article 4276/3 dated 18 June 1997> Bar associations may not engage in activities other than those befitting their purpose of establishment.
<Amended as per Article 4667/46 dated 2 May 2001> In state protocol, bar associations stand next to the chief public prosecutor for the province.

Establishment of bar associations, removal and deposition of their organs
Article 77 – <Amended as per Article 4667/47 dated 2 May 2001> A bar association is established in every capital of province where a minimum of thirty attorneys are present. The provision in the second paragraph will be applied to already established bar associations in which the number of attorneys falls below thirty.
<Amended as per Article 4667/47 dated 2 May 2001> The Union of Bar Associations of Turkey will decide whether the localities without a bar association should be attached to the nearest bar association or combined into a new bar association, as well as where the latter's offices will be located. The Union of Bar Associations of Turkey will produce a list of the attorneys with offices in the jurisdictional area of the new bar association to be established who are entered in the directory and will task the senior attorney among them with establishing the new bar association. A founding board of four chaired by the assigned attorney will accomplish the establishment of the bar association within six months at the latest and report same to the Union of Bar Associations of Turkey. In the event of the resignation of the board of directors of the bar association together with the alternate board members, the same founding board will reconvene in order to lead the bar association toward election in three months at the latest.
<Amended as per Article 4667/47 dated 2 May 2001> Bar associations assume legal personality upon reporting their establishment to the Union of Bar Associations of Turkey.
<Amended as per Article 4667/47 dated 2 May 2001> The Union of Bar Associations of Turkey will report the establishment to the Ministry of Justice.
<Amended as per Article 4276/4 dated 18 June 1997> The removal from duty of, and the election of replacements for the bar associations and the responsible organs of the Union of Bar Associations of Turkey engaged in activities outside their purposes will be adjudicated by the local civil court of first instance according to simple trial procedure upon the request of the Ministry of Justice or the local public prosecutor; and the trial will be concluded within three months at the latest .
The organs removed from duty will be replaced by election within one month at the latest. The newly elected organs will serve out the terms of the former.
The assigned organs of bar associations are under the obligation to implement to the letter the decisions made in accordance with the present Law by the Ministry of Justice as an approving authority in connection with the actions of the organs of bar associations. The provisions of the foregoing paragraphs will be applied to the organs of bar associations failing to implement the decisions of the Ministry of Justice despite a ruling by the administrative judicial authority of a stay of execution or on the merits of the case, or in the absence of a statutory cause; or passing a new decision in the nature of a decision of persistence in the former decision; or failing to carry out the statutory actions despite the warning of the Ministry of Justice.
Criminal liability stipulated by law will be reserved for the members of the organs removed from duty. The acts of these organs causing their removal from duty as per the preceding paragraph will be void.
<Amended as per Article 4276/4 dated 18 June 1997> However, bar associations and the Union of Bar Associations of Turkey may be prohibited from operation by the governor of the local province if a delay would be detrimental in circumstances involving national security or the public order, or when exigent for the prevention of an offense or its protraction or for the apprehension of an offender. The decision to prohibit operation will be submitted to the approval of a judge with jurisdiction within twenty-four hours. The judge will announce his/her decision within forty-eight hours; otherwise, this administrative decision will be automatically abrogated.
The provisions governing termination of duty and removal from duty will not be applied to the general assembly of the bar association.

Gratuitousness of duties and duties which may not be combined in the same person
Article 78 – The presidency of the bar association, memberships in the, presidential council, the board of directors, audit and disciplinary boards; and duties assigned to attorneys in connection with the safeguarding, representation, and defense of the interests of the bar association will be performed gratuitously.
Travel and accommodation allowances and other essential expenditures will be reimbursed out of the funds of the bar association.
The presidency of a bar association, memberships in the board of directors and the disciplinary board, and auditorship may not be combined in the same person.
<Amended as per Article 4667/48 dated 2 May 2001> However, membership in the disciplinary board and auditorship may be combined in the same person in bar associations with fewer than forty attorneys entered in their directory.


SECTION TWO
Organs Of Bar Associations

Organs
Article 79 – The organs of bar associations are the following:
1. General assembly of the bar association.
2. Board of directors  of the bar association.
3. President of the bar association.
4. Presidential council of the bar association.
5. Disciplinary board of the bar association.
6. Board auditors of the bar association.

I – General assembly of the bar association

Composition
Article 80 – The general assembly of the bar association is the highest organ in the bar association and is composed of all the attorneys entered in the directory.

Duties
Article 81 – The duties of the general assembly are as follows:
1. Electing members to the board of directors, the disciplinary board, and the board auditors; the president of the bar association, and the delegates for the Union of Bar Associations of Turkey.
2. <Amended as per Article 4667/42 dated 2 May 2001> Determining the admission dues to be paid upon entry in the directory and entry in the attorney partnership register by multiplying the index figures of two thousand minimum and eight thousand maximum for attorneys, and twenty thousand minimum and eighty thousand maximum for attorney partnerships, and the membership dues to be paid annually by multiplying the index figures of one thousand minimum and four thousand maximum for attorneys, and ten thousand minimum and forty thousand maximum for attorney partnerships with the salary coefficient set for public servants every year in the budget act; and fixing the dates of their payment.
3. Reviewing the accounts submitted by the board of directors regarding the revenues and expenditures of the bar association and the management of its property, and deciding whether to acquit the board of directors.
4. Approving the budget of the bar association.
5. Reviewing and approving the house regulations to be drafted by the board of directors.
6. Determining the nature and amount of aid to be granted to attorneys in need and their survivors other than what the board of directors of the bar association is authorized to grant as per the current statutes.
7. Debating and deciding on motions pertaining to the profession.
8. Defining the specifications of attorney offices.
9. Exercising other powers conferred by statutes.

Regular meetings
Article 82 – <Amended as per Article 3256/12 dated 22 January 1986> The general assembly will convene in the first week of October every two years upon the invitation of the president of the bar association to discuss the items on its agenda.

Extraordinary meetings
Article 83 – The Union of Bar Associations of Turkey, the president of the bar association, the board of directors of the bar association, or the board auditors may call an extraordinary meeting of the general assembly when they deem it necessary. The president of the bar association is under the obligation to call an extraordinary meeting of the general assembly within fifteen days at the latest upon the written request of one fifth of the attorneys entered in the directory indicating the points to be discussed.

Call for a meeting
Article 84 – <Amended as per Article 4667/50 dated 2 May 2001> The place, time, and agenda of the regular meeting of the general assembly; and the place and time of the second meeting if the required majority is not reached in the first, will be posted where suitable in the bar association and the judicial offices in its professional circles until the date of the general assembly meeting starting at least thirty days before the meeting. Such announcement will effectively serve as an official notice.

Chairing panel of the general assembly
Article 85 – A chairing panel composed of a chairperson, a deputy chairperson, and two members will be elected as the first thing in both the regular and the extraordinary meetings of the general assembly. The election will be held by separately voting for each position. The voting will be done openly unless otherwise decided by the general assembly and those who get the largest number of votes will be elected.
The president of the bar association, the members of the board of directors of the bar association  and the board auditors may not be elected to the chairing panel.

Obligation to attend the meeting
Article 86 – <Amended as per Article 3003/3 dated 8 May 1984>
<Amended as per Article 4667/51 dated 2 May 2001> An attorney entered in the directory of the bar association is under the obligation to attend both the regular and the extraordinary meetings of the general assembly and to vote. Those who do not attend these meetings or do not vote without a valid reason will be fined by the chairperson of the county election board at the rate of one third the amount of the annual dues paid by attorneys enrolled with that bar association. These fines will be collected by the office of the president of the bar association and marked as revenue in the budget of the bar association.
The third and fourth paragraphs of Article 64 will also be applied to the fines imposed as per the present Article.

Quorum for debate and decisions
Article 87 – The general assembly will convene with the attendance of one more than half of the lawyers entered in the directory.
<Amended as per Article 4667/52 dated 2 May 2001> If the majority mentioned in the first paragraph is not reached, the meeting will be adjourned to one week later unless pressing reasons exist to the contrary. However, such adjournment may not exceed fifteen days. No meeting and debate may be held on the date to which the meeting has been adjourned unless at least one third of the members are present for bar associations with up to and including sixty members, one fifth are present for bar associations with up to and including four hundred members, and one tenth are present for bar associations with more than four hundred members.
Decisions will be passed by considering as adopted the motion that receives the largest number of votes of all, provided that quorum is present in accordance with the foregoing provisions. In the case of a tie, the side taken by the chairperson of the general assembly will carry the vote.
The same majority will apply to the votes received by candidates in elections.
A member may not vote on matters in which he/she has a private stake. This rule will not apply to elections.
<Amended as per Article 3003/4 dated 8 May 1984> Minutes will be kept of he decisions of the general assembly. The minutes will be signed by the chairing panel of the general assembly and forwarded to the Union of Bar Associations of Turkey.

Prohibition of discussion on items not on the agenda
Article 88 – Points not indicated on the agenda as items for discussion may not be decided upon in the meeting of the general assembly. This provision will not apply to a decision to hold a new meeting.

II – Board of directors of the bar association

Composition
Article 89 – The board of directors of every bar association will be composed of the president of the bar association and a minimum of four members.
There will be six regular members in bar associations with fifty to one hundred attorneys, eight in bar associations with one hundred and one to two hundred and fifty attorneys, and ten in bar associations with more than two hundred and fifty one attorneys. There will be the same number of alternate members as regular members in every bar association.
The president of the bar association will serve as the chairperson of the board of directors.

Eligibility, impediments, and mode of conduct of election
Article 90 – <Amended as per Article 1238/1 dated 26 February 1970> The members of the board of directors will be elected from among the attorneys entered in the directory with a minimum of five years in the profession. The condition of five years in the profession will not be sought in bar associations with fewer than one hundred members.
Those on whom the initiation of a final investigation has been decided in connection with an offense constituting an impediment to attorneyship, or those punished with censure, fine, or dismissal from employment during the last five years by a final decision of the disciplinary board may not be elected to the board of directors. 2. <Additional sentence as per Article 4667/53 dated 2 May 2001> Those removed from duty in accordance with the provision of Article 77 may not run for the organs of the bar association in the next meeting of the general assembly.
<Third paragraph rescinded as per Article 3003/9 dated 8 May 1984>
Members of the board of directors are elected by closed vote. The ballots must include at least one name more than half the number of regular members to be elected. Ballots with fewer names than this will not be valid. If more names are written in a ballot than the number of regular members to be elected, the redundant names will be disregarded starting from the last.
The candidates will be sorted according to the votes they have received. First the regular members, and next the alternate members will be identified according to this order starting with the member who has received the highest number of votes. In case of a tie, the candidate with professional seniority will lead. If professional seniorities are also equal, the oldest member will lead. Alternate members will be called upon for duty in the board of directors according to their place in the list determined by the number of votes they have received.
The duties of board members losing their eligibility will be terminated automatically.

Term of duty
Article 91 – <Amended as per Article 3079/1 dated 14 November 1984> The term of duty of the board of directors is two years. Board members whose term of duty has expired may be reelected.

Withdrawal before completion of term of duty
Article 92 – <Amended first paragraph 3256/13 dated 22 January 1986> A regular member who withdraws before completing his/her term of duty will be replaced by the alternate member who has received the highest number of votes.
A board member committed for trial for an offense constituting an impediment to eligibility as per Article 90 may not participate in the board until the conclusion of the lawsuit and his/her seat will be filled by an alternate member.

Meetings
Article 93 – The board of directors will be called to a meeting by the president of the bar association directly or upon the written request of a member indicating the topic to be discussed.
The board of directors will convene with absolute majority and pass decisions with the absolute majority of members. In the case of a tie, the side taken by the chairperson will carry the vote. The president of the bar association or board members may not participate in discussions on matters they are involved in.
Minutes kept of the decisions of the board of directors will be signed by the chairperson and the members.

Toplantıya çağrı
Article 94 – <Amended as per Article 4667/54 dated 2 May 2001> The members of the board of directors will convene upon the call of the president of the bar association. A member who has been absent from three consecutive meetings will have his/her membership forfeited by a decision of the board of directors.
Objection may be raised against such decision with the Union of Bar Associations of Turkey within fifteen days as of the date of notification. <Additional sentence as per Article 4667/54 dated 2 May 2001> The objection will not suspend the execution of the decision.

Duties of the board of directors
Article 95 – The board of directors is charged with performing the duties assigned to it by law. It investigates into the affairs of the bar association and safeguards its interests.
The major duties of the board of directors are the following:
1. Ensuring the safeguarding of the respectability of attorneyship and professional order, and the practice of the profession with dedication and pride in accordance with the goals of justice.
2. Deciding upon matters pertaining to the admission and entry in the directory or transfer of apprentices and attorneys.
3. <Amended as per Article 4667/55 dated 2 May 2001> Managing the bar association directory, and maintaining the attorney roster and attorney partnership roster.
4. <Amended as per Article 4667/55 dated 2 May 2001> Providing guidance and information to the members of the bar association regarding their professional duties and inspecting the performance of the latter, defending the profession of attorneyship and colleagues against encroachments upon the rights particular to the profession and its members, and to take all manner of legal and administrative action in these matters.
5. <Amended as per Article 4667/55 dated 2 May 2001> Mediating in and resolving upon request the disputes arising between attorneys entered in the directory, between attorneys and attorney partnerships, between the partners to attorney partnerships, and between all of the foregoing and clients; calling the parties to a settlement in disputes over fees.
6. Managing the property of the bar association and determining the nature of the aid to be granted to attorneys in need.
7. <Amended as per Article 4667/55 dated 2 May 2001> Preparing reports on the management of the property of the bar association and rendering account to the general assembly; preparing the budget and submitting it to the general assembly for approval.
8. Purchasing, selling, and mortgaging movable and immovable assets; and instituting and abrogating all manner of property rights on such assets on behalf of the bar association; and giving the president of the bar association specific authority in these matters.
9. Managing and supervising the affairs of apprenticeship.
10. Deciding upon the resignations of the members of the board of directors.
11. Establishing and managing a legal aid office.
12. Preparing the agenda for the general assembly.
13. Executing the decisions of the general assembly.
14. Managing and conducting the personnel affairs of the salaried clerks employed by the bar association.
15. <Amended as per Article 4667/55 dated 2 May 2001> Performing all the tasks associated with the house management of the bar association; developing the house rules.
16. Implementing the decisions of the Ministry of Justice, the Union of Bar Associations of Turkey, and the disciplinary board.
17. Offer opinions upon matters as requested by ministries, courts, or government agencies.
18. Exercising other powers conferred by statutes.
19. <Added as per Article 4667/55 dated 2 May 2001> Establishing representation offices at judicial centers in the jurisdictional area of the bar association.
20. <Added as per Article 4667/55 dated 2 May 2001> Selecting the attorneys to participate in the arbitration board mentioned in Article 167.
21. <Added as per Article 4667/55 dated 2 May 2001> Defending, safeguarding, and promoting the viability of the concepts of the supremacy of the law and human rights.
22. <Added as per Article 4667/55 dated 2 May 2001> Checking the conformity of the basic contract of attorney partnerships with the standard basic contract and deciding upon registration in the attorney partnership register.
The board of directors may delegate the duties mentioned in Subparagraphs 4 and 5 of the second paragraph to some of its members.

III – President of the bar association

Election and withdrawal before the completion of term of duty
Article 96 – The president of the bar association is elected for a term of two years. Reelection is permitted. <Additional sentence as per Article 4667/56 dated 2 May 2001> However, serving more than two consecutive terms is not permitted.
<Amended as per Article 4667/56 dated 2 May 2001> The president of the bar association is elected by closed vote from among attorneys entered in the directory with a minimum of ten years in the profession of attorneyship. The ten-year condition will not be sought in bar associations with fewer than one hundred members.
<Amended as per Article 4667/56 dated 2 May 2001> The provisions of the second and sixth paragraphs of Article 90 will apply by analogy to the election of the president of the bar association, as well.
The person elected to replace a president who withdraws before the completion of his/her term of duty will serve out the term of the departing president.

Duties
Article 97 – The duties of the president of the bar association are the following:
1. Representing the bar association and chairing the board of directors.
2. Implementing the decisions of the general assembly, the board of directors, and the disciplinary board; and conducting daily business.
3. Making commitments and acquisitions on behalf of the bar association to extent permitted and authorized as per Article 95, making undertakings, receiving donations to the bar association, and implementing the budget.
4. Appointing the attorneys to represent and defend the bar association in courts and government agencies.
5. Ensuring the formatting of attorney registers after the sample provided by the Union of Bar Associations of Turkey and safekeeping them.
6. Defending the dictates of the law and professional rules against all manner of organs in matters involving the honor and independence of the profession, and taking the actions behooving him/her directly or indirectly.
7. Submitting a written report to the Union of Bar Associations of Turkey every year on the activities of the bar association and the board of directors.
8. Performing the duties and exercising the powers of the other members of the presidential council in bar associations without a presidential council.
9. Exercising other powers conferred by statutes.

IV – Presidential council of the bar association

Composition and election
Article 98 – The presidential council is composed of,
1. The president of the bar association,
2. The vice-president of the bar association,
3. The secretary general of the bar association,
4. The treasurer of the bar association.
The formation of a presidential council is obligatory for bar associations with more than fifty members.
The members of the presidential council other than the president will be elected by the members of the board of directors of the bar association by closed vote from among themselves at the first meeting of the board of directors to be held after the election of the board of directors.
Should a member of the presidential council depart before completing his/her term, a replacement will be elected within one month at the latest to serve the remainder of his/her term.

Duties of the presidential council of the bar association
Article 99 – The predidential council performs the duties conferred upon it by statutes or by the decisions of the board of directors of the bar association.
The council makes the decisions necessary for the management of the bar association's property and briefs the board of directors verbally or in writing upon the board's request.

Duties of the vice-president of the bar association
Article 100 – The vice-president of the bar association performs the duties and exercises the powers of the president in the latter's absence or, if the post of president has become vacant for any reason, until the induction of a new president.
In the absence of the vice-president of the bar association, it behooves the professionally senior member of the board of directors to perform the duties and exercise the powers of the president.

Duties of the secretary general of the bar association
Article 101 – The secretary general of the bar association keeps the minutes of the meetings of the board of directors, manages the internal paperwork of the bar association, issues directives to the internal clerical office of the bar association, and supervises the work of the latter.

Duties of the treasurer of the bar association
Article 102 – The treasurer of the bar association is authorized to manage the property of the bar association in accordance with the decisions of the presidential council, receive and dispense money, collect dues, collect fines to be marked as revenue for the bar association, and the take all kinds of supervisory action in connection with the implementation of the budget.
<Amended as per Article 3256/14 dated 22 January 1986> The treasurer of the bar association will countersign the papers drawn up in receiving and dispensing money with the president or, in the latter's absence, with the vice-president or the secretary general of the bar association.

V – Disciplinary board of the bar association

Composition
Article 103 – The disciplinary board will be composed of three members in bar associations with up to two hundred and fifty attorneys, and five members in bar associations with more than two hundred and fifty attorneys. Three alternate members will also be elected to the disciplinary board in every bar association.

Eligibility and impediments to election
Article 104 – <Amended as per Article 1238/1 dated 26 February 1970>
The provisions of Article 90 will apply by analogy to the members of the disciplinary board, as well.
The result of the election will be reported to the Union of Bar Associations of Turkey by means of a memorandum to be drawn up by the board of directors of the bar association.

Term of duty
Article 105 – <Amended as per Article 3256/15 dated 22 January 1986> Members of the disciplinary board will be elected for two years. A member may be reelected after completing his/her term.
<Amended as per Article 4667/57 dated 2 May 2001> The disciplinary board will elect a chairperson and a secretary from among its members in its first meeting after the election. The provisions of Articles 90, 92, and 94 will apply by analogy to the members of the disciplinary board, as well.

Meetings
Article 106 – The disciplinary board will convene with at least three of its members present.
Decisions will be passed with the absolute majority of the full number of members. In case of a tie, the side taken by the chairperson will carry the vote.
The professionally senior member will chair the board in the absence of the chairperson.

Duty
Article 107 – The duty of the disciplinary board is to make disciplinary decisions and impose disciplinary penalties by conducting disciplinary prosecution on attorneys upon the decision of the board of directors of the bar association  to initiate a disciplinary prosecution, and to exercise the other powers conferred upon it by statutes.

VI – Board auditors of the bar association

Composition and duties
Article 108 – <Amended as per Article 1238/1 dated 24 December 1970>
<First paragraph amended as per Article 3256/16 dated 22 January 1986> The general assembly of the bar association will elect a maximum of three regular and three alternate auditors from among its members to audit the financial affairs of the bar association for a term of two years.
Election will be held by closed vote. The provisions of Articles 90 and 92 will apply by analogy to the auditors, as well.


PART NINE
Union Of Bar Associations Of Turkey

SECTION ONE
General Provisions

[Establishment] and nature of the Union
Article 109 – <Amended as per Article 4667/58 dated 2 May 2001>
The Union of Bar Associations of Turkey is an organization formed with the participation of all of the bar associations in Turkey.
The Union is a professional organization in the nature of a public agency  with legal personality.
The Union's headquarters is in Ankara.

Duties of the Union
Article 110 – The duties of the Union of Bar Associations of Turkey are the following:
1. Ensuring the precipitation of a majority opinion by finding out the respective opinion of each bar association in matters concerning bar associations by means of mutual discussions.
2. Promoting the profession of attorneyship by coordinating the efforts of bar associations in order to reach a common goal.
3. Safeguarding the interests at large of the members of bar associations and the ethics, order, and traditions of the profession.
4. Strengthening professional ties by introducing Turkish bar associations and their members to each other.
5. Making efforts to have a bar association established in every province capital and to instill in citizens a conviction as to the necessity and benefits of having their lawsuits filed and cases defended thorough the agency of attorneys.
6. Disseminating recommendations and publications to have the laws developed and enforced in keeping with the requirements of the country, and developing preliminary drafts if necessary.
7. Voicing its views with authorities in matters concerning bar associations.
8. Submitting reports covering its views and ideas on legal and professional topics queried by the Ministry of Justice, agencies with judicial or legislative power, and bar associations.
9. Taking all kinds of measures to encourage and ensure the professional development of attorneys.
10. Cooperating with the Ministry of Justice and and judicial authorities in order to have court opinions systematically compiled and published.
11. Making efforts toward the realization of the rights conferred, and the thorough and honorable discharge of the duties imposed upon attorneys by statutes.
12. Setting up libraries, publishing periodicals, organizing conferences, and offering incentives to the creation of original and translated works to heighten the scientific and professional levels of the members of bar associations.
13. Hold occasional meetings to discuss the solutions and measures for rendering the profession more attractive and reaching the stated goals in this area.
14. Displaying an interest in, and making contact with boards and organizations related to jurisprudence in the country.
15. Keeping in contact with foreign bar associations, attorney unions, and legal institutions and participating in international conferences.
16. Defining and recommending the mandatory rules of the profession.
17. <Added as per Article 4667/59 dated 2 May 2001> Defending and safeguarding the supremacy of the law and human rights, and promoting the functionality of these concepts.
18. Exercising other powers conferred by statutes. 

Prohibitions, acquisition of property, place in protocol, removal and deposition of their organs
Article 111 – <Amended as per Article 3003/5 dated 8 May 1984>
<First paragraph amended as per Article 4276/5 dated 18 June 1997> The Union of Bar Associations of Turkey may not engage in activities other than its purposes for establishment.
The Union may acquire movable and immovable assets for use in accord with its purpose.
<Amended as per Article 4667/60 dated 2 May 2001> In state protocol, the President of the Union of Bar Associations of Turkey stands next to the Chief Public Prosecutor of the Court of Cassation.
<Amended as per Article 4276/5 dated 18 June 1997> The provisions of the fifth, sixth, seventh, eighth, and ninth paragraphs of Article 77 will apply to the organs of the Union, as well. <Additional sentence as per Article 4667/60 dated 2 May 2001> However, in the event the entity removed from duty is the board of directors of the Union, the duties of this entity will be undertaken by a minimum of three attorneys to be selected as a temporary board of directors from among the delegates to the last general assembly by the court which passed the ruling until the induction of the replacements to be elected.

The paid nature of the positions
Article 112 – The positions of president, vice-president, secretary general, and treasurer of the Union of Bar Associations of Turkey are paid salaries. The members of the board of directors not assigned to the presidential council, the members of the disciplinary board, and the board auditors will be paid honoraria in meetings. The amounts and the modes of payment of the salaries and the honoraria will be determined by the general assembly of the Union.
Of the aforementioned members, those who are the delegates of provinces other than Ankara will be reimbursed for their travel and accommodation and other essential expenses out of the Union's budget. The amount of such reimbursement will be fixed by the general assembly.

SECTION TWO
Organs Of The Union

Organs
Article 113 – The organs of the Union of Bar Associations of Turkey are the following:
1. General assembly of the Union of Bar Associations of Turkey.
2. Board of directors of the Union of Bar Associations of Turkey.
3. President of the Union of Bar Associations of Turkey.
4. Presidential council of the Union of Bar Associations of Turkey
5. Disciplinary board of the Union of Bar Associations of Turkey.
6. Board auditors of the Union of Bar Associations of Turkey.

I – General assembly of the Union of Bar Associations of Turkey

Composition
Article 114 – The general assembly is the highest entity of the Union of Bar Associations of Turkey.
<Amended as per Article 4667/60 dated 2 May 2001> The general assembly is composed of two delegates from each bar association elected by closed vote from among members with a minimum of ten years in the profession of attorneyship. Incumbent presidents of bar associations and attorneys who have served and are currently serving as the president of the Union of Bar Associations of Turkey are natural members of the general assembly of the Union of Bar Associations of Turkey with the right to participate in votings, to elect, and to be elected.
Bar associations with more than one hundred members will elect an additional delegate for each incremental three hundred members after the first hundred.
Bar associations will elect the same number of alternate delegates. Delegates will be elected for a term of two years at the regular meeting of the general assembly of each bar association.
Members with the impediments stated in the second paragraph of Article 90 may not become delegates.
Each bar association will pay the travel and accommodation allowances of its delegates out of its own budget.
<Amended as per Article 4667/61 dated 2 May 2001> The time and place of the meeting of the general assembly of the Union of Bar Associations of Turkey, and the need to send delegates will be communicated to bar associations in writing no later than thirty days before the meeting. If a regular delegate has an excuse, he/she will be replaced by an alternate who will attend and vote in the meeting of the general assembly of the Union of Bar Associations of Turkey in lieu of the latter.

Meetings
Article 115 – <Amended as per Article 3256/17 dated 22 January 1986> The general assembly of the Union of Bar Associations of Turkey will hold its regular meeting every two years at the time and place determined by the former general assembly.
The Board of Directors of the Union of Bar Associations of Turkey may call the general assembly to an extraordinary meeting when it deems necessary or upon the written request of the boards of directors of at least ten bar associations.
The Minister of Justice may request the board of directors of the Union to call the general assembly to an extraordinary meeting to receive their views and ideas on the general interests of justice and the profession, and on the legal and professional bills to be drafted.
The provisions of the first paragraph of Article 85 will apply by analogy to the election of the chairing panel of the general assembly of the Union. Those who assume duties in the organs of the Union may not be elected to the chairing panel.

Quorum for deliberations and decisions
Article 116 – The general assembly of the Union may not convene and pass decisions unless at least one fourth of its members are present.
In the absence of quorum as stated in the first paragraph above, the meeting will be adjourned to a future date not to be later than one month. This meeting and the subsequent meetings will also be adjourned to dates one month later unless and until at least one fifth of the members are present.
The provisions of the third, fourth, and fifth paragraphs of Article 87 and the provision of Article 88 will apply by analogy to the meetings and discussions of the general assembly of the Union.

Duties
Article 117 – The duties of the general assembly of the Union are as follows:
1. Electing members to the board of directors and the disciplinary board, and the board auditors; and the President of the Union.
2. Debating and making decisions on the reports prepared on matters within the scope of the Union's purpose of establishment and the topics in its agenda .
3. Issuing instructions to the board of directors.
4. Reviewing the accounts of the Union and deciding whether to acquit the board of directors.
5. Electing the delegates to attend conferences in Turkey and abroad. (The general assembly may delegate this authority to the board of directors of the Union.)
6. Determining the time and place of the next meeting of the general assembly.
7. <Amended as per Article 3256/18 dated 22 January 1986> Making recommendations on matters concerning jurisprudence and the profession, and defining the mandatory rules of the profession.
8. <Amended as per Article 3256/18 dated 22 January 1986> Determining the amount of the dues that bar associations will collect from attorneys on behalf of the Union, with said amount not to exceed half the amount of the annual dues paid by each attorney to his/her respective bar association.
9. Determining the amounts and the modes of payment of the salaries to be paid to the president, vice-presidents, secretary general, and the treasurer of the Union and the honoraria to be paid to the members of the board of directors, disciplinary board, and the board auditors.
10. <Amended as per Article 4667/62 dated 2 May 2001> Performing the duties and exercising the powers conferred upon the Union as per Articles 49 and 75 of the present Law.
11. Exercising other powers conferred by statutes.

II – Board of directors of the Union of Bar Associations of Turkey

Composition
Article 118 – The Board of Directors of the Union of Bar Associations of Turkey is composed of the president of the Union and ten members elected by the general assembly of the Union by closed vote from among its members.
The board of directors of the Union is chaired by the president of the Union.

Term of duty
Article 119 – <Amended as per Article 3079/2 dated 14 November 1984> The term of duty of the board of directors of the Union is four years. Board members whose term of duty has expired may be reelected.
The provisions of the second, third, fourth, fifth, and sixth paragraphs of Article 90 and the provision of Article 92 will apply by analogy to the members of the board of directors of the Union.

Meetings
Article 120 – The board of directors of the Union will hold its regular meetings once a month. In emergencies, the board may always be called to an extraordinary meeting upon the request of the president or a board member.
The date of the next meeting will be set at the end of every meeting. The date of meeting will be communicated to the members by a letter of invitation. Excuses will be submitted in writing at least seven days in advance.
A member who fails to attend three consecutive meetings without a valid, documented excuse will be considered as having resigned.
The board of directors of the Union will convene with absolute majority of the full number of members and pass decisions with the absolute majority of those present. However, in meetings held with ten or fewer members present, at least five members must unite in the same vote for a decision to be passed. In the case of a tie, the side taken by the chairperson will carry the vote.

Duties
Article 121 – The duties of the Board of Directors of the Union of Bar Associations of Turkey are the following:
1. Calling the general assembly of the Union to meeting and preparing the agenda.
2. <Amended as per Article 3256/19 dated 22 January 1986> Manage the Union and its property.
3. <Amended as per Article 3256/19 dated 22 January 1986> Preparing and submitting to the general assembly the biennial budget.
4. Executing the decisions made by the general assembly of the Union.
5. <Amended as per Article 3256/19 dated 22 January 1986> Purchasing, selling, and mortgaging movable and immovable assets; instituting and abrogating all manner of property rights on such assets on behalf of the Union; and giving the president of the Union specific authority in these matters and other actions pertaining to commitments and acquisitions.
6. Managing and conducting the personnel affairs of the salaried clerks employed by the Union.
7. Keeping books recording the summary decisions of the board of directors of the Union.
8. <Amended as per Article 4667/63 dated 2 May 2001> Keeping the records of individual attorneys, attorneys sharing the same office, and attorney partnerships in compliance with the basic rules and preocedures prescribed in regulations; drawing up the standard basic contract of attorney partnerships, designing and having printed attorneyship licenses, identification papers, and certificates of authorization for attorney partnerships.
9. <Amended as per Article 3256/19 dated 22 January 1986> Submitting reports to the general assembly of the Union on the overall status, actions and projects of the Union; requesting acquittal of its activities and accounts.
10. Examining and deciding upon the objections raised against the decisions of bar associations provided that such authority is not conferred upon another agency or entity by statutes.
11. <Amended as per Article 4667/60 dated 2 May 2001> Performing the duties and exercising the powers conferred upon the Union as per Articles 31, 44, 54, 77 and 83 of the present Law.
12. Calling the general assemblies of bar associations to extraordinary meetings.
13. Applying to the authorities concerned for the safeguarding of the rights and interests of attorneys and bar associations.
14. Conducting studies that would help promote the profession of attorneyship, safeguard the rights of attorneys, and improve their social standing; and submitting the results and its recommendations to the general assembly of the Union.
15. Offering ideas and opinions in response to queries made by official sources about the profession of attorneyship.
16. Setting up libraries and producing professional publications for the professional development of attorneys; and assisting attorneys in publishing the works they will produce.
17. Resolving disputes to arise between bar associations.
18. <Amended as per Article 4667/63 dated 2 May 2001> Making all efforts necessary to ensure the institution and continuity of professional solidarity, defending the profession of attorneyship and colleagues against encroachments upon the rights particular to the profession and its members, and to take all manner of legal and administrative action in these matters.
19. Exercising other powers conferred by statutes.
20. <Amended as per Article 4667/63 dated 2 May 2001> Performing the duties assigned to the Union in connection with the attorneyship examination.

III – President of the Union of Bar Associations of Turkey

Election and withdrawal before the completion of the term of duty
Article 122 – The president of the Union is elected by the general assembly of the Union from among its members for a term of four years. Reelection is permitted.
The provisions of the second, third, and sixth paragraphs of Article 90 and the provision of the fourth paragraph of Article 96 will apply by analogy to the president of the Union.

Duties
Article 123 – The duties of the president of the Union are the following:
1. Representing the Union of Bar Associations of Turkey and chairing the board of directors of the Union.
2. Implementing the decisions of the general assembly, the board of directors, and the disciplinary board of the Union.
3. Making commitments and acquisitions on behalf of the Union to the extent permitted and authorized as per Article121, making undertakings, receiving donations to the Union, and implementing the budget.
4. Appointing the attorneys to represent and defend the Union in courts and government agencies.
5. Establishing abd conducting relations with foreign unions of bar associations, bar associations, and legal institutions.
6. Defending the dictates of the law and professional rules against all manner of organs in matters involving the honor and independence of the profession, and taking the actions behooving him/her directly or indirectly.
7. <Amended as per Article 3256/20 dated 22 January 1986> Submitting a written report to the general assembly on the activities of the Union.
8. Exercising other powers conferred by statutes.

IV – Presidential council of the Union of Bar Associations of Turkey

Composition and election
Article 124 – The presidential council of the Union of Bar Associations of Turkey is composed of,
1. The president of the Union of Bar Associations of Turkey,
2. The two vice-presidents of the Union of Bar Associations of Turkey,
3. The secretary general of the Union of Bar Associations of Turkey,
4. The treasurer of the Union of Bar Associations of Turkey.
The members of the presidential council other than the president will be elected by the members of the board of directors of the Union by closed vote from among themselves at the first meeting of the board of directors to be held after the election of the board of directors.
Should a member of the presidential council depart before completing his/her term, a replacement will be elected within one month at the latest to serve the remainder of his/her term.

Duties of the presidential council of the Union of Bar Associations of Turkey
Article 125 – The presidential council performs the duties conferred upon it by statutes or by the decisions of the board of directors of the Union.
The council makes the decisions necessary for the management of the Union's property and briefs the board of directors verbally or in writing upon the board's request.
<Added as per Article 4667/64 dated 2 May 2001> The presidential council of the Union will call the presidents of bar associations to a meeting to receive their opinions when required.

Duties of the vice-presidents of the Union of Bar Associations of Turkey
Article 126 – The vice-presidents of the Union perform the duties to be assigned and exercise the powers to be delegated by the president of the Union.
In the absence of the president of the Union or until the induction of a new president if the post of president of the Union has become vacant for any reason, it behooves the vice-presidents in order of seniority to discharge the duties and exercise the powers of the president of the Union.
In the absence of the vice-presidents of the Union, it behooves the professionally senior member of the board of directors of the Union to discharge the duties and exercise the powers of the president.

Duties of the secretary general of the Union of bar associations of Turkey
Article 127 – The secretary general of the Union keeps the minutes of the meetings of the board of directors, manages the internal paperwork of the Union, issues directives to the internal clerical office of the Union, and supervises the work of the latter.

Duties of the treasurer of the Union of Bar Associations of Turkey
Article 128 – The treasurer of the Union is authorized to manage the property of the Union in accordance with the decisions of the presidential council of the Union, receive and dispense money, and the take all kinds of supervisory action in connection with the implementation of the budget.
<Amended as per Article 3256/21 dated 22 January 1986> The treasurer of the Union will countersign the papers drawn up in receiving and dispensing money with the president or, in the latter's absence, with either one of the vice-presidents or the secretary general of the Union.

V – Disciplinary board of the Union of Bar Associations of Turkey

Composition
Article 129 – The disciplinary board of the Union is composed of seven members elected by the general assembly of the Union of Bar Associations of Turkey from among its members by closed vote. Seven alternate members will also be selected.
The disciplinary board will elect a chairperson from among its members in its first meeting after the election.

Term of duty
Article 130 – Members of the disciplinary board of the Union will be elected for four years. A member may be reelected after completing his/her term.
The provisions of the second, third, fourth, fifth, and sixth paragraphs of Article 90 and the provision of Article 92 will apply by analogy to the members of the disciplinary board of the Union.

Meetings
Article 131 –The disciplinary board of the Union will hold its regular meetings once a month. In emergencies, the board may always be called to an extraordinary meeting upon the request of the president of the Union, or the chairperson of the disciplinary board of the Union, or a member of the disciplinary board.
The provisions of the second and third paragraphs of Article 120 will apply by analogy to the disciplinary board of the Union, as well.
The disciplinary board of the Union will convene with absolute majority of the full number of members and pass decisions with at least four members uniting on a vote. In the case of a tie, the side taken by the chairperson will carry the vote.

Duties
Article 132 – The disciplinary board of the Union will perform the duties assigned and exercise the powers conferred by the present Law.

VI – Board auditors of the Union of Bar Associations of Turkey

Composition and duties
Article 133 – <First paragraph amended as per Article 3256/22 dated 22 January 1986> The general assembly of the Union will elect three regular and three alternate auditors from among its members to audit the financial affairs of the Union for a term of four years.
Election will be held by closed vote. The provisions of the second, third, fourth, fifth, and sixth paragraphs of Article 90 and the provision of Article 92 will apply by analogy to the board auditors of the Union, as well.


PART TEN
Disciplinary Actions And Penalties

Circumstances when disciplinary penalties will be imposed
Article 134 – <Amended as per Article 4667/65 dated 2 May 2001> The disciplinary penalties prescribed in the present Law will be imposed on those whose acts and conduct contradict the honor, order, traditions, and professional rules of attorneyship; and those who neglect their duties in professional practice or fail to exercise the personal integrity required by their duties.

Disciplinary penalties
Article 135 – Disciplinary penalties are the following
1. <Amended as per Article 3256/23 dated 23 January 1986> Warning: Informing an attorney of the necessity of exercising greater care in practicing his/her profession.
2. Censure: Informing an attorney that he/she is considered to be at fault in his/her practice and conduct.
3. <Amended as per Article 3256/23 dated 22 January 1986> Fine from ten thousand to one hundred and fifty thousand Turkish Liras.
4. <Amended as per Article 4667/66 dated 2 May 2001> Dismissal: Prohibition of an attorney or an attorney partnership from professional practice for not less than three months and not more than three years.
5. Disbarment: Withdrawal of an attorney's license, deletion of his/her name from the directory of his/her bar association, and revocation of his/her title of attorney. <Additional sentence as per Article 4667/66 dated 2 May 2001> For attorney partnerships, the deletion will be from the attorney partnership register of their respective bar association.

Mode of imposition of penalties
Article 136 – Those who fail to observe the provisions given in PART SIX of the present Law regarding the rights and duties of attorneys will be punished with censure as a minimum at the first offense, fine or dismissal upon recurrence depending on the severity of the offense, and disbarment in the event of final conviction of an offense stated in Article 5, Subparagraph a.
An attorney displaying misconduct punishable by a disciplinary penalty two or more times during a period of five years will be punished with a heavier penalty than the preceding one at each offense.
An attorney who has been dismissed once will be disbarred if he/she fails to observe the rules in PART SIX of the present Law during a period of five years.
Right of defense
Article 137 – In prosecutions conducted on attorneys, the charge must be clearly explained to the attorney in writing, his/her defense requested, and a minimum of ten days granted for the defense.

Actions and misconduct before enrollment with the bar association and after leaving the profession
Article 138 – <Amended as per Article 4667/67 dated 2 May 2001> The actions and misconduct predating admission into and entry in the bar association directory will not require disciplinary prosecution unless they are punishable with disbarment. This provision will not be applied to the period of apprenticeship.
An attorney's departure from the profession will not preclude disciplinary prosecution on his/her actions and misconduct during his/her practice.

Investigative authority and the replacement of absent members
Article 139 – The authority to decide the initiation of and conduct a disciplinary prosecution rests with the bar association in whose directory the attorney was enrolled on the date the complaint or notice compelling the prosecution was received, the public prosecutor requested an prosecution, or information was received of its own motion on the actions or misconduct compelling the prosecution.
Presidents of bar associations and members of the boards of directors and disciplinary boards of bar associations may not participate in the debates and decisions on prosecutions concerning themselves.
The missing number of members will be replaced by alternate members in the event quorum is absent in the meetings of the boards of directors and disciplinary boards of bar associations due to the presence of circumstances as prescribed in the second paragraph, or the non-attendance of the chairpersons and any members out of rejection or abstention. In the event the alternate members also do not participate in the debate or decisions for any reason, or their numbers are not adequate, the absences will be filled by drawing names from among attorneys enrolled in the baro directory eligible for the board of directors and the disciplinary board.

The effect of criminal prosecution on disciplinary penalties
Article 140 – A criminal prosecution already in progress on an attorney will not preclude the enforcement of disciplinary actions and decisions.
<Amended as per Article 3256/24 dated 22 January 1986> However, if a suit has been filed against an attorney in a criminal court because of acts compelling disciplinary action and decision, the disciplinary prosecution on the attorney will be suspended until the conclusion of the criminal action. In such a case, the disciplinary board, upon the request of the board of directors, is under the obligation to make a decision in accordance with Articles 153 and 154 as to whether the dismissal of the attorney would be in order.
Disciplinary prosecution on acts triable in a criminal suit that was concluded with acquittal depends on whether those actions are of a nature requiring a disciplinary prosecution in their own right and independently of the provisions of criminal codes – with the exception of acquittal because the act was not committed or because it was not committed by the accused.
Boards of directors of bar associations are under the obligation to initiate disciplinary prosecution on acts triable in a criminal suit that was concluded with conviction.

Initiation of disciplinary prosecution
Article 141 – A disciplinary prosecution is initiated with a decision to be made by the board of directors of the bar association.
The board of directors is under the obligation to make a decision on the disciplinary prosecution urgently and at any rate no later than one year from the date of notice, complaint, or request.
The board of directors may assign one of its members with the task of conducting a preliminary investigation to serve as a basis for a decision as to whether a disciplinary prosecution should be initiated upon a notice or a complaint, a request made by the public prosecutor, or of its own motion. The member thus assigned with the preliminary investigation will collect the evidence and receive statements from persons he/she deems necessary, having them take an oath if he/she sees fit; and will submit the file compiled to the board of directors with his/her report after hearing also the attorney on whom the investigation is being conducted or after the expiration of the period granted for a hearing. <Additional sentence as per Article 4667/68 dated 2 May 2001> The board of directors may request information and documents from all kinds of judicial and administrative authorities, and may request files or copies thereof for examination.
The decisions made by the board of directors not to initiate prosecution on the act or conduct mentioned in the notice, complaint, or request will be communicated to the parties concerned and the public prosecutor.
Objection to decisions not to initiate disciplinary prosecution
Article 142 – Objections may be raised by the complainant or the public prosecutor with the Board of Directors of the Union of Bar Associations of Turkey against the decisions of the boards of directors of bar associations not to initiate disciplinary prosecution, within fifteen days from the date of notification of the decision.
If the subject matter of the complaint, notice, or request is found to be worthy of reconsideration as a result of the examination to be conducted on the file by the Board of Directors of the Union of Bar Associations of Turkey, the former decision will be revoked and the file will be forwarded to the bar association which passed the former decision for the initiation of disciplinary prosecution. Such decisions of the Board of Directors of the Union of Bar Associations of Turkey will be final.
Decisions not to initiate disciplinary prosecution made by the boards of directors of bar associations will become final if no objections are raised within the statutory period.
<Amended as per Article 4667/69 dated 2 May 2001> The decisions not to initiate disciplinary prosecution made by the Union of Bar Associations of Turkey in response to objections raised in accordance with the first paragraph will become final if no decision is made by the Ministry of Justice within two months as of the date of their receipt by the Ministry of Justice or if the decisions are approved by the Ministry. However, the Ministry of Justice will return the decisions it does not deem appropriate to the Union of Bar Associations of Turkey for reconsideration together with the reasons for return. The decisions thus returned will be considered as approved if passed unchanged by a two thirds majority vote of the Board of Directors of the Union of Bar Associations of Turkey; otherwise they will be considered as not approved. The result will be communicated to the Ministry of Justice by the Union of Bar Associations of Turkey.
The provisions of the sixth and seventh paragraphs of Article 8 will be applied here, as well, by analogy.

Re-examination for an identical offense
Article 143 – Re-examination due to acts covered by decisions not to initiate disciplinary prosecution is contingent upon the emergence of new evidence and the lapse of no more than three years after the date the decision became final.

Trial before the disciplinary board
Article 144 – <Amended as per Article 3256/25 dated 22 January 1986>
<First paragraph amended as per Article 4667/70 dated 2 May 2001> In cases where disciplinary prosecution is decided, the disciplinary board will conduct its examination on paper upon receipt of the file is forwarded by the board of directors. The file forwarded to the disciplinary board will contain also the attorney's register. The examination will be conducted in trial mode if requested by the attorney or deemed necessary by the disciplinary board.
The trial will be closed.
The disciplinary board is under the obligation to finalize the examination urgently and at any rate not later than one year from its date of receipt of the decision. Circumstances where the outcome of criminal action must be awaited are reserved.

Trial in absence
Article 145 – Trial will be held in the absence of  an attorney who fails to respond to the invitation to trial. However, the letter of invitation must include a reminder that trial will be held in absentio if the attorney does not make himself/herself present.

Submission and examination of evidence
Article 146 – The disciplinary board will determine the manner of submission and examination of the evidence independently of request or renunciation or previously made decisions.

Hearing of witnesses and expert witnesses
Article 147 – It is at the discretion of the disciplinary board to invite a witness or an expert witness to the trial, have such witnesses heard by one of the board members or by a rogatory process, or let suffice the perusal of a written statement.
However, in cases where evidence of an event consists solely of the personal knowledge of a witness, such witness will be heard at any rate.

Minutes of the trial
Article 148 – The minutes of the trial will be kept by a board member or a secretary to be assigned by the chairperson of the disciplinary board.
Minutes of hearings taken outside the trial must be read out during the trial.

Fulfilling requests received by letters rogatory
Article 149 – Instructions given by letters rogatory will be carried out by the disciplinary board or one of its members in the central location of the bar association, and by an attorney to be assigned by the disciplinary board of the respective bar association in other locations.

Summoning witnesses and expert witnesses
Article 150 – Witnesses and expert witnesses will be summoned in accordance with the provisions of the Service of Process Law.
If a person does not respond to a procedurally proper invitation, or refrains from serving as a witness or an expert witness or from taking an oath without just cause, the criminal justice of peace in the area of residence of this person may be requested to impose a light fine from twenty to two hundred Turkish Liras upon him/her in addition to expenses. The criminal justice of peace in the capital of province where the bar association is located will decide the forcible summoning of such witness upon request.
A witness punished in accordance with the provisions of the above paragraph and re-summoned by service of process rather than requested to be brought forcibly, and an expert witness re-summoned by service of process after being punished will be punished again if they fail again to make themselves present.
The justice of peace will base his/her decision of fine or forcible summoning on a copy of the minutes of the disciplinary board.

Rejection and withdrawal of disciplinary board members
Article 151 – Members of the disciplinary board may be rejected or may withdraw for the reasons cited in the Law of Criminal Procedure.
A request for rejection will be considered with the participation of other members than the one whose rejection is requested.
In the event the disciplinary board cannot convene because of rejections and withdrawals, action will be taken as prescribed in Article 139.

Serving notice of decisions
Article 152 – An authenticated facsimile of the decisions of the disciplinary board will be forwarded to the public prosecutor in the capital of province where the bar association is located as well as the parties concerned.

Prohibition from practice
Article 153 – An attorney on whom a prosecution is in progress due to an act which may be punishable by disbarment may be prohibited from practice as a precaution by a decision of the disciplinary board.
It is obligatory that the attorney has been heard or invited for a hearing and not made himself/herself present on the date indicated before the decision is made. <Additional sentence as per Article 4667/67 dated 2 May 2001> However, separately inviting and hearing an attorney is not obligatory if notice could not be served to the attorney at the address he/she had given to the bar association.
The disciplinary board will have discretion to determine, at liberty and independently of request, the limits to which the evidence that will serve as a basis for this decision will be submitted and reviewed.
The decision will be communicated to the attorney under prosecution together with its reason, on which date it will enter into force. However, objection may be raised against the decision with the Disciplinary Board of the Union of Bar Associations of Turkey. Objections will not suspend the execution of the decision. Objections will be decided upon urgently and at any rate not later than one month. The contested decision will be revoked if the objection is deemed to be in order.
A decision of prohibition from practice will be communicated immediately to judicial entities and other authorities by the president of the bar association.

Mandatory prohibition from practice
Article 154 – <Amended as per Article 3003/7 dated 8 May 1984> Prohibition from practice is mandatory for attorneys who have been punished with disbarment or <...>  <...>  have been temporarily commissioned in accordance with Article 42 and have withheld, without an acceptable reason, the payment of the fees they received from the client for work done in accordance with the last paragraph of the same Article to the party concerned.
Attorneys on whom a decision of prohibition from practice has not been made by the disciplinary board within two months as of the emergence of the reasons for prohibition stated in the above paragraph will be prohibited from practice by a decision to be made directly by the Disciplinary Board of the Union of Bar Associations of Turkey .

Provisions for prohibition from practice
Article 155 – Those prohibited from practice may not exercise by any means the powers associated with attorneyship as of the date of prohibition. This provision will not apply to the attorney's spouse and children who are not of legal age.
Attorneys who act in contravention of the prohibition stated in the first paragraph will be punished with one of the penalties stated in Subparagraphs 4 and 5 of Article 135.
Courts and government agencies are under the obligations to reject attorneys prohibited from practice.

Revocation of the decision of prohibition from practice
Article 156 – <Amended as per Article 4667/73 dated 2 May 2001> The decision of prohibition from practice will be abrogated automatically when the prosecution has been suspended or a punishment imposed that does not constitute an impediment to the practice of attorneyship.
The decision of prohibition from practice will be revoked by the disciplinary board when it is established that the circumstances on which this decision was based do not exist or have ceased to exist afterwards. 

Objection to  decisions of the disciplinary board
Article 157 – Objections may be raised by the public prosecutor or the parties concerned with the Disciplinary Board of the Union of Bar Associations of Turkey against the decisions of the disciplinary board within fifteen days from the date of notification of the decision.
The disciplinary board of the Union will review disciplinary cases from the file. However, a trial may be decided of its own motion or upon the request of the attorney concerned in the course of the review of decisions of punishment with dismissal or disbarment or with prohibition from practice.
Articles 145 1nd 146 will apply to the disciplinary board of the Union, as well.
Trial in the disciplinary board of the Union will commence with the presentation of the case by the reporter member. This member must have signed and placed his report in the file before the trial.
The reporter's introduction will be followed by the presentations of the attorney concerned and his/her agents, if any. The party having made the complaint will be heard first. The party under disciplinary prosecution will be heard last.
The disciplinary board of the Union may uphold the decision under review, or decide to revoke the decision and send the file to the bar association concerned for a more comprehensive prosecution, or, in circumstances where a re-examination is not required, decide on the merits of the case by revoking a decision it does not deem appropriate.
<Amended as per Article 4667/674 dated 2 May 2001> The decisions made by the Disciplinary Board of the Union of Bar Associations of Turkey in response to objections will become final if no decision is made by the Ministry of Justice within two months as of the date of their receipt by the Ministry of Justice or if the decisions are approved by the Ministry. However, the Ministry of Justice will return the decisions it does not deem appropriate to the Union of Bar Associations of Turkey for reconsideration together with the reasons for return. The decisions thus returned will be considered as approved if passed unchanged by a two thirds majority vote of the Disciplinary Board of the Union of Bar Associations of Turkey; otherwise they will be considered as not approved. The result will be communicated to the Ministry of Justice by the Union of Bar Associations of Turkey. However, decisions of warning, censure, and fine are final and not subject to the approval of the Ministry.
<Amended as per Article 4667/74 dated 2 May 2001> The provisions of the sixth and seventh paragraphs of Article 8 will be applied here, as well, by analogy.

Discretionary appraisal of evidence, the purpose of dispensing punishment, and deduction of time served from punishment
Article 158 – The Disciplinary Board of the Union of Bar Associations of Turkey and the disciplinary boards of bar associations will appraise the evidence demonstrated at their discretion based on the impression they receive from the investigation and the trial.
<Amended as per Article 4667/75 dated 2 May 2001> In dispensing disciplinary punishment, these boards will keep in consideration the principles of safeguarding the honor, order, and traditions of the profession of attorneyship and the practice of the profession in accordance with its purpose and demands and with justice.
<Amended as per Article 3256/26 dated 22 January 1986> In the event that an attorney prohibited from practice is given a punishment of dismissal from employment for a definite period, the time lapsed under prohibition from practice will be deducted from his/her punishment.

Statute of limitations regarding prosecutions and penalties
Article 159 – No prosecution will be conducted if three years have lapsed as of the commission of the acts punishable with disciplinary penalty. Such time will not count if the affair has been handled by the board of directors.
No disciplinary penalty may be given if four-and-a-half years have lapsed as of the commission of the acts punishable with disciplinary penalty.
If the acts punishable with disciplinary penalty also constitute a crime and such crime is subject to a longer statute of limitations, such statute of limitations will be applied in lieu of the periods stated in the first and second paragraphs.

Enforcement of disciplinary decisions and clearing registers of penalties
Article 160 – <Amended as per Article 3256/27 dated 22 January 1986> Decisions of disciplinary penalty may not be enforced unless they have become final.
Attorneys who have received a disciplinary penalty other than disbarment and dismissal from work may apply to the disciplinary board five years after the enforcement of the penalties of warning, censure, and fine requesting the clearance of their registers of these penalties.
Provided that the attorney concerned has not received another disciplinary penalty during the period stated in the above paragraph, the clearance of his/her register of the former disciplinary penalties is decided; and the discipline section in the register file of the attorney is removed and a new one drawn up.

Expenses incurred for witnesses and expert witnesses
Article 161 – Every witness and expert witness summoned in connection with disciplinary action is entitled to an appropriate compensation for the time lost and the efforts spent. Those who have to travel to respond to the invitation will be reimbursed for their travel and accommodation expenditures, as well. The complainant and the attorney under prosecution will pay the expenditures of the witnesses and expert witnesses whom they want heard in advance.
Expenses which cannot be imposed on the lawyer or a third party or can no longer be collected from the debtor will be borne by the bar association.
The complainant may be required to pay an advance amount from ten to two hundred Turkish Liras depending on the nature of the complaint and the scope of the disciplinary investigation and prosecution to be conducted. Should the advance amount prove insufficient, completion of the outstanding amount may always be requested. Action may be withheld until the payment of the advance amount and any outstanding amounts requested.

Collection of fines or expenses
Article 162 – Decisions regarding fines or the reimbursement of expenditures will be enforced in accordance with the provisions of the Enforcement and Bankruptcy Law regarding the execution of court decisions. Fines will be marked as revenue for the bar association.
Execution proceedings will be conducted in accordance with general provisions through the agency of an attorney to be appointed by the bar association.

PART ELEVEN
Attorneyship Contract

Scope of the attorneyship contract
Article 163 – <Amended as per Article 4667/76 dated 2 May 2001> The attorneyship contract is drawn up at liberty. The attorneyship contract must cover a specific legal service and an amount or a value. Unwritten contracts will be proven in accordance with general provisions. Conditional contracts are valid provided that the conditions are not in contradiction of the law.
Contracts in excess of the attorneyship fee ceiling  are valid at the ceiling value. Invalidity may not be claimed for a contract that has been carried out. The invalidity of an article will not invalidate the entire attorneyship contract.

Attorneyship fee
Article 164 – <Amended as per Article 4667/77 dated 2 May 2001> The attorneyship fee represents the amount or value that the legal service is worth.
The attorneyship fee may be agreed as a certain percentage of the entity or money to be litigated or adjudicated, not to exceed twenty-five percent.
Contracts to be made in accordance with the second paragraph may not bear any terms to the effect that part of the non-monetary property and rights under litigation will be owned in kind by the attorney.
No agency fee may be agreed below the minimum attorneyship fee tariff. Cases of accepting a commission free of charge will be reported to the board of directors of the bar association. The minimum attorneyship fee tariff will be applied in lawsuits and cases for which an attorneyship fee has not been agreed and of which the value cannot be measured in terms of money. An amount from five to fifteen percent of the value of the suit on the date of the dispute over the attorneyship fee, depending on the outcome of the suit and the amount of work put in by the attorney, will be adjudged as the attorneyship fee by an authority having the power to review objections to fees in lawsuits and cases the value of which can be measured in terms of money, the fee thus determined not being less than the minimum attorneyship fee tariff.
The attorneyship fee to be imposed on the opposite party at the end of the suit depending on the decision and the tariff belongs to the attorney. This fee may not be traded or deducted due to the client being in debt; nor may it be attached.

Joint and several liability for payment of attorneyship fee
Article 165 – <Amended as per Article 4667/78 dated 2 May 2001> In the case of the presence of more than one client, each client will be jointly and severally liable for the payment of the attorneyship fees of both parties in lawsuits and cases that have been concluded with an agreement between the parties by means of peaceful settlement or any other means whatsoever and thus not settled in court.

Lien of the attorney and priority of the attorneyship fee
Article 166 – An attorney may withhold the property, money, and all kinds of other securities given by or acquired on behalf of his/her client to the extent proportionate with the amount due to the attorney until the attorneyship fee and costs have been paid.
An attorney will have preference over other creditors on property retained or acquired by his/her client as a result of the attorney's work, and on the money to be collected or the property to be taken from the opposite party to the suit as per the decision of the court, with regard to the attorneyship fee agreed by contract and adjudicated by the judge. The preference will take order of priority based on the date the power of attorney has been drawn up or, in the case of a general power of attorney, the date when the first official application has been made on behalf of the client in connection with the lawsuit or case for which the attorneyship fee is to be paid. <Additional sentences: Article 4667/79 dated 2 May 2001> In the event of the client's bankruptcy, the attorneyship fee will also carry preference. However, the provision of the first paragraph of Article 206 of the Enforcement and Bankruptcy Law number 2004 dated 9 June 1932 is reserved.
When forcible execution of a court decision is initiated, the enforcement office will immediately serve a notice, to be drawn up at the same time as the execution order, to the attorney of the party requesting enforcement action whose name is indicated in the court decision, collecting the expense from the party requesting enforcement action. The subsequent stages of the execution may not commence until such notice is served. The provision of Article 59 of the Enforcement and Bankruptcy Law number 2004 dated 9 June 1932 will be applied with regard to the expenses to be incurred in connection with the notice to be served to the attorney.
In the event of the attorney's death, the attorneyship fee claims inherited by his/her heirs will carry priority as do the claims of the attorney. However, the obligation to serve notice as per the third paragraph will not be applied to these persons.

Settlement of disputes through arbitration
Article 167 – <Amended as per Article 4667/80 dated 2 May 2001> All disputes arising over attorneyship contracts and fees will be settled by the arbitration board of the bar association in the location where the legal assistance is rendered. The arbitration board will be composed of the senior judge of first instance in the judicial jurisdictional area where the bar association is located and two attorneys, with eligibility for the board of directors of the bar association, to be elected by the board of directors. The arbitration board will be chaired by the civil judge of first instance. The board members selected will serve for a term of three years. A member may be re-elected after his/her term expires.
One half of the arbitration fee must be deposited at the same time as the suit is filed. A facsimile of the decision of the arbitration board that has become final will be forwarded to the bar association with which the attorney is enrolled. The provisions of the Code of Civil Procedure, Number 1086 dated 18 June 1927 will be applied to arbitration affairs with the exception of Articles 527, 529, 532, 533/1, and 536. Other matters pertaining to arbitration will be provided for in the Arbitration Regulations for Bar Associations  to be published by the Union of Bar Associations of Turkey.

Preparation of the attorneyship fee tariff
Article 168 – <Amended as per Article 4667/81 dated 2 May 2001> In the month of September every year, the boards of directors of bar associations each prepare a tariff indicating the minimum limits of the attorneyship fees to be charged for actions in the juridical authority and other actions, and forward it to the Union of Bar Associations of Turkey.
The tariff to be prepared by the Board of Directors of the Union of Bar Associations of Turkey by taking into consideration the recommendations of the bar associations will be completed by the end of the month of October of the same year and submitted to the Ministry of Justice. The tariff will become final if no decision is made by the Ministry of Justice within one month as of the date of its receipt by the Ministry of Justice or if the tariff is approved by the Ministry. However, the Ministry of Justice will return a tariff it does not deem appropriate to the Union of Bar Associations of Turkey for reconsideration together with the reasons for return. A tariff thus returned will be considered as approved if passed unchanged by a two thirds majority vote of the Board of Directors of the Union of Bar Associations of Turkey; otherwise it will be considered as not approved. The result will be communicated to the Ministry of Justice by the Union of Bar Associations of Turkey.
The provisions of the sixth paragraph of Article 8 will be applied here, as well, by analogy.
The tariff in effect on the date legal assistance was completed or a decision was passed at the end of the suit will be taken as the basis in the adjudication of the attorneyship fee.

Amount of attorneyship fee to be imposed on the opposite party by the judicial authorities
Article 169 – <Amended as per Article 2329/2 dated 31 October 1980> The amount of the attorneyship fee to be imposed on the opposite party by the judicial authorities may not be less than or more than three times the amount indicated in the attorneyship fee tariff.
<Second paragraph abolished as per Article 4667/82 dated 2 May 2001>

Article 170 – <Abolished as per Article 3256/29 dated 22 January 1986>

Obligation to complete the job and delegation of others
Article 171 – <Amended as per Article 4667/83 dated 2 May 2001> Attorneys will follow the jobs they are commissioned with through to their completion in accordance with statutory provisions and regardless of the absence of a written contract.
If the power of attorney given to an attorney authorizes the delegation of others, the attorney may perform the job together with another attorney or delegate the job to another attorney unless otherwise stated expressly in the contract. If the power of attorney includes a general authorization to represent the client and delegate others in all suits to be filed and jobs to be followed up after the date it was drawn up, the attorney may perform the job together with another attorney or delegate another attorney to perform the job without having recourse to obtaining a separate power of attorney from the client in all suits and jobs after such date.
The attorney's reponsibility to the client will continue in circumstances stated in the second paragraph. The attorney will be responsible both in person and jointly and severally with the other attorneys for the malpractice of and the damages caused by the other attorneys with whom he/she works together or to whom he/she has fully delegated the job. However, this provision will not be applied to attorneys who fully delegate their jobs to others because of an obligation to work elsewhere in one of the  jobs  stated in Article 12.
If an attorney has entered in partnership with other attorneys for the performance of a job, he/she may not claim a separate fee from the client for this arrangement; nor may the other attorneys claim any fee for same. If the job has been fully delegated to another attorney, the delegating and the delegated attorneys may claim from the client proportionate portions of the fee corresponding to their respective amounts of work, provided that the total does not exceed the contracted fee. However, if the delegating attorneys has received his/her fee in advance from the client, he/she is under the obligation to pay to the delegated attorney the amount which is in excess of the portion corresponding to the delegating attorney's work.

Commissioning of another attorney by the client
Article 172 – The client may include other attorneys in the prosecution and defense stages of the job with the written consent of the attorney with whom he/she has made the initial contract.
The client will request the consent of the first attorney with a letter to be delivered or officially sent to the latter, giving him/her at least one week to respond. The absence of a response within the designated period will mean that consent has been granted by the attorney.
The attorneyship contract will be terminated of its own motion if the first attorney does not grant his/her consent. The client is under the obligation to pay the full attorneyship fee to an attorney who declines from giving consent.
In the event that other attorneys also participate in the performance of the job, the client may not curtail the fee of the first attorney. In such a case, the provision of the third paragraph of Article 171 will be applied regarding the responsibility of attorneys to clients.

Specificity of the attorneyship fee
Article 173 – Unless otherwise stated in the contract, the attorneyship fee agreed is exclusively for the specific job the attorney has undertaken; and cross-action, other suits and executory proceedings regardless of connection and relation, and all kinds of legal assistance will be subject to separate fees.
All taxes, duties, charges, and expenses required for the performance of the job commissioned to the attorney, or for obtaining the result of the job after performance will be under the responsibility of the client who will pay them to the attorney or where payable upon the first request by the attorney. A sufficient amount must have been paidby the client to the attorney in advance in order that such expenses may be paid by the attorney. The travel expenses to be incurred by the attorney in connection with the job and any indemnities to which the attorney is liable for vacating a previous job position will be paid separately by the client in accordance with the relevant contract. The attorney may not be forced to travel unless such expenses are reimbursed in advance. Contracts to the contrary are permitted.

Discontinuation of work by the attorney, dismissal of the attorney, and default in the payment of the attorneyship fee
Article 174 – An attorney who discontinues the work he/she has undertaken without a rightful cause may not claim any fee and will be under the obligation to return any amounts he/she has received in advance.
The attorneyship fee will be paid in full if the attorney is dismissed. However, payment of the fee will not be required if the attorney has been dismissed due to his/her fault or negligence.
The attorney will not be obligated to commence work if the fee required to be paid to the attorney in advance is not paid. All kinds of liabilities to arise in this connection will rest with the client. The same provision will be applied with regard to liability if the attorney is disabled from performing the job and obtaining its result due to the non-fulfillment of the other payment obligations written in the contract.

Address of the client
Article 175 – Any and all notices served by the attorney to the address written in the power of attorney given by the client will be considered as having been delivered to the client in person. Changes of address will be communicated to the attorney by the client by registered mail within three days at the latest.
Liabilities to arise from the impossibility of serving notice at the client's address or from failure to communicate the changes of address will rest with the client.

PART TWELVE
Legal aid

Scope of legal aid
Article 176 – <Amended as per Article 4667/84 dated 2 May 2001>
Legal aid is the rendering of the attorneyship services described in the present Law for the benefit of those who do not have the wherewithal to pay attorneyship fees and other adjudicatory expenses.

Legal aid office
Article 177 – <Amended as per Article 4667/85 dated 2 May 2001>
Legal aid service is rendered by a legal aid office established at the headquarters of bar associations by the board of directors of the bar association with manning drawn from among its attorneys.The board of directors of the bar association  may also designate an attorney as the representative of the legal aid office in jurisdictional areas outside the location of the bar association where more than five attorneys are available. The legal aid office and the representatives operate under the supervision of the board of directors of the bar association.

Request for legal aid
Article 178 – <Amended as per Article 4667/86 dated 2 May 2001>
A request for legal aid will be made to the legal aid office or its representatives. The requestor must prove the rightfulness of the request by presenting evidence.
If the request for legal aid is rejected, the requestor may apply to the president of the bar association verbally or in writing. The decision of the president of the bar association will be final.

Administration of legal aid
Article 179 – <Amended as per Article 4667/87 dated 2 May 2001>
If the request for legal aid is accepted, the legal aid office will assign one or more attorneys to carry out the actions required.  An attorney thus assigned will be assume the obligation to render attorneyship services upon receiving the letter of assignment.
This obligation will cease to exist if the requestor fails to furnish the required documents and information despite a request or refrains from giving a power of attorney.
If the assigned attorney wishes to abstain from performing the job, he/she will be under the obligation to pay to the bar association the fee indicated for that job in the tariff within fifteen days as of the date he/she received notice of the assignment.
The legal aid office will monitor the progress of the work being done by the attorney assigned.
The provisions pertaining to legal aid in the Code of Civil Procedure, number 1086, dated 18 June 1927, the Code of Criminal Procedure, number 1412, dated 4 April 1929, and other statutes are reserved.

Revenues and expenses of the legal aid office
Article 180 – <Amended as per Article 4667/88 dated 2 May 2001>
The revenues of the legal aid office are the following:
a) Three percent of the charges levied according to tariffs numbered 1, 2, and 3 under the Law of Charges, number 492, based on the total amounts determined on the basis of the final balances of accounts two years prior; and three percent of fines excluding fines of an administrative nature.
b) The shares of the bar association and the financial aid granted to the bar association by public and private agencies and organizations and from the budgets of provincial governments and municipalities.
c) All donations made for the purpose of legal aid.
d) The money to be deposited by attorneys in abstention.
e) Ten percent of the fee received by the attorney assigned with legal aid and five percent of the value adjudged in favor of the beneficiary of legal aid, other than the attorneyship fee.
The expenditures of the legal aid office are the following:
a) Fees to be paid where necessary to attorneys assigned with legal aid.
b) Salaries to be paid to personnel to be employed in the office.
c) Upkeep of the office and other expenses.
The revenues and expenditures of legal aid offices will be indicated in separate parts in the budget of the office. It is obligatory that the revenue surplus be carried over to the following year as is.
The allocation to be estimated in accordance with Subparagraph a of the first paragraph will be deposited in the account of the Union of Bar Associations of Turkey by the Ministry of Finance by the end of March every year. These funds will be used exclusively for legal aid and the money not spent during the intended year will be carried over to the following year as is. The provisions governing the distribution and utilization of these funds among the bar associations will be in accordance with the regulations  published by the Union of Bar Associations of Turkey.

Annual activity report and regulations
Article 181 – <Amended as per Article 4667/89 dated 2 May 2001>
The legal aid office will submit a report on its work to the board of directors of the bar association at the end of every year. A copy of the report will be forwarded to the Union of Bar Associations of Turkey by the bar association.
Matters such as the establishment of the legal aid office, the designation of the attorneys to be assigned and the determination of their fees, the operation of the office, and its supervision will be addressed in the regulations  to be published by the Union of Bar Associations of Turkey.

PART THIRTEEN
Miscellaneous Provisions

Regulations
Article 182 – <Amended as per Article 4667/90 dated 2 May 2001> The regulations covering the points left to be addressed in regulations and the other points that must be included in regulations in order to ensure the implementation of the present Law will be prepared by the Board of Directors of the Union of Bar Associations of Turkey and submitted to the Ministry of Justice. The regulations will become final if no decision is made by the Ministry of Justice within one month as of the date of their receipt by the Ministry of Justice or if the regulations are approved by the Ministry. However, the Ministry of Justice will return a regulation it does not deem appropriate to the Union of Bar Associations of Turkey for reconsideration together with the reasons for return. A regulation thus returned will be considered as approved if passed unchanged by a two thirds majority vote of the Board of Directors of the Union of Bar Associations of Turkey; otherwise it will be considered as not approved. The result will be communicated to the Ministry of Justice by the Union of Bar Associations of Turkey. The provisions of the sixth and seventh paragraphs of Article 8 will be applied here, as well, by analogy.

Notice to be served to public prosecutors
Article 183 – It is obligatory that the notices to be served to public attorneys in accordance with the present Law be accompanied by the relevant file.

Services to be counted toward seniority in attorneyship
Article 184 – Those who have made a transition to attorneyship from the services listed in the first paragraph of Article 4 will have their former length of service in these fields counted toward their seniority in attorneyship.

Provision for attorneys without a law degree
Article 185 – The provisions of the present Law other than PARTs TWO, FOUR, FIVE, SEVEN, EIGHT and NINE; and Article 65 will be applied by analogy to attorneys without a law degree, as well.
<Second paragraph abolished as per Article 4667/91 dated 2 May 2001>

Absolute requirement to join collective insurance
Article 186 – Attorneys other than those mentioned in Article 188 are under the obligation to join collective insurance as prescribed in Article 86 of the Social Security Law, number 506. However, this obligation pertains only to insurances of disability, old age, and death. Insurances of liability of employer, occupational diseases, sickness, and maternity are optional.
<Added as per Article 1238/2 dated 26 February 1970> The provisions of the Social Security Law, number 506; Law number 228 dated 5 January 1961; and the supplements and amendments thereto will be applied to attorneys subject to collective insurance provided that such provisions do not contradict the special provisions of the present Law.

Conditional requirement to join group insurance
Article 187 – Attorneys under the coverage of Provisional Article 2 are under the obligation to join collective insurance if they do not exercise their right of borrowing credit from the Retirement Fund of the Republic of Turkey for the payment of their premiums within the period indicated in the same Article.

Ineligibility for group insurance
Article 188 – <Amended as per Article 1238/1 dated 26 February 1970> Those employed in jobs subject to retirement, those covered by the Social Security Law, number 506 (including those who have taken out optional insurance as per Article 85 of the same Law), those who have exercised the right of borrowing as per Provisional Article 2, those receiving a retirement pension or a disability pension from the Retirement Fund of the Republic of Turkey, or those who have taken benefit of old age or disability insurance in accordance with the Social Security Law, number 506, and those affiliated with or have taken benefit of the funds operating in accordance with Provisional Article 20 of the same Law may not join collective insurance as prescribed  in Article 186.
An attorney's ineligibility for collective insurance will not constitute an impediment to his/her practice of the profession of attorneyship.

Article 189 – <Abolished as per Article 1238/6 dated 26 February 1970>

Consequences of non-payment of insurance premium
Article 190 – The name of an attorney who has not paid his/her collective insurance premiums at the time indicated in the collective policy will be deleted from the bar association directory by the decision of the board of directors of the bar association until he/she clears his/her accumulated debt of insurance premium under the conditions set forth in the collective policy; and the situation will be reported to whom it may concern.
The consequences of non-payment of insurance premiums will be specific to the person of the attorney who is in default; and no clause may be included in the contract extending such consequences to the other insured who have joined the same collective insurance policy or to the bar association. <Additional sentence as per Article 4667/92 dated 2 May 2001> The provision of Article 140 of the Social Security Law, number 506, dated 17 July 1964, may not be applied to bar associations.


Preparation of standard policy and joining group insurance
Article 191 – The standard insurance policy to serve as the basis for the insurance contracts to be concluded between bar associations and the Social Security Association in accordance with Article 86 of the Social Security Law, number 506, will be drawn up by means of discussions to be held between the Ministry of Labor, the Union of Bar Associations of Turkey, and the Social Security Association.
The provision in the above paragraph will also be applied to amendments to the standard policy.
Bar associations to be established after the entry into effect of the present Law will apply to the Social Security Association to conclude a collective insurance contract in accordance with the standard policy within one month as of the date of their establishment. Attorneys enrolled with a newly established bar association will join the collective insurance of their new bar association without losing the rights they have acquired in under collective insurance they had joined when enrolled with their former bar association.

Rescinded provisions
Article 192 – The attorneyship Law, number 3499, has been rescinded together with the supplements and amendments thereto, without prejudice to the provisions of Provisional Article 7.

Amended provisions of laws
Article 193 – <This Article is about the amendment of Articles 1, 4, and 5 of Law number 6207 dated 21 December 1953. The amendments have been inserted where appropriate in the mentioned Law.>

Amended provision of Law number 1086
Article 194 – <This Article is about the amendment of Article 61 of Law number 1086 dated 18 June 1927. The amendments have been inserted where appropriate in the mentioned Law.>

Counting of prior attorneyship services toward seniority upon employment in a job subject to retirement
Article 195 – <Amended as per Article 1238/1 dated 26 February 1970>
When an attorney who has joined collective insurance in accordance with the present Law and is still insured is appointed or elected to a position or service subject to retirement, his/her transition will be effected by adding three fourths  of his/her length of service in attorneyship contributing to his retirement to his/her seniority; and his/her monthly salary for duty or service and his/her salary taken as the base for calculating his insurance premium will be raised.

Articles 196 through 198 – <Abolished as per Article 1238/6 dated 26 February 1970>

Article 199 – <This Article is about the addition of one supplementary article each to the Municipal Code, number 1580, dated 3 April 1930; and the Law of General Administration of Provinces dated 13 March 1929. The newly introduced provisions have been inserted where appropriate in the mentioned Laws.>
Attorneys employed with public agencies and organizations and state economic enterprises
Supplementary Article 1 – <Added as per Article 3003/8 dated 8 May 1984>
Entry in the bar association directory is optional for those employed regularly and permanently as attorneys with public agencies and organizations and state economic enterprises. However, the provisions of the present Law regarding admission into the profession of attorneyship and the issuance of licenses will be applied as usual to attorneys in this status. In discharging their duties, such attorneys will have the same rights and obligations as those enrolled in the directories of bar associations. Attorneys who will not enroll in the bar association will inform the bar association of this fact.
Attorneys who declare that they do not wish to be entered in the directory of the bar association will go through a decision process to be admitted into the profession of attorneyship and to have a license drawn up in their name only. The remaining actions prescribed by the Law will be carried out as usual.
Practicing the profession of attorneyship will only be possible by entry in the directory of the bar association in the event of departure from the duties mentioned in the first paragraph.
The disciplinary actions and penalties prescribed by the present Law in relation to attorneys will also be applied to the attorneys in the particular status described in this Article by the bar association in whose jurisdictional area such attorneys are permanently employed.

Representation abroad
Supplementary Article 2 – <Amended as per Article 4667/94 dated 2 May 2001>
Attorneys may participate in international meetings and conferences for the purpose of representing the Union of Bar Associations of Turkey or their respective bar associations by informing the Ministry of Justice.

Holding of elections
Supplementary Article 3 – <Added as per Article 3003/8 dated 8 May 1984>
The actions regarding the election by closed vote of the organs of bar associations and the Union of Bar Associations of Turkey in accordance with the present Law will be conducted under jurisdictional control as per the following principles.
<Amended as per Article 4667/95 dated 2 May 2001> At least fifteen days before the general assembly meeting at which an election will be held, a list indicating the names of those of the attorneys enrolled with the bar association who have the right to participate in the general assembly in the case of bar association elections, and the names of the regular and alternate delegates elected by bar associations to participate in the general assembly as well as the names of the natural delegates in the case of the elections of the Union of Bar Associations of Turkey will be submitted in three copies to the judge serving as the chairperson of the local county election board together with a letter indicating the agenda, place, date, and time of the meeting and the points pertaining to the second meeting to be held if quorum is absent in the first. The judge will be assigned by the High Election Board if there is more than one county election board in a locality. The timing of the meeting will be so arranged as to have the elections conducted under the supervision of the chairperson of the county election board after the termination of the discussions by taking into account the date of the meeting and the other items on the agenda. In bar associations with more than four hundred members, the discussions will be terminated on Saturday so that the elections can be started at nine AM on Sunday and voting ended at five PM.
The judge will approve the list indicating the names of the attorneys to participate in the elections and the other points stated in the above paragraph after examining any additional documents and records he deems necessary and having any discrepancies corrected. The approved list and other points pertaining to the meeting will be publicized for three days by being posted on the bulletin boards of the judiciary office and the bar association.
Objections raised against the list during the publicity period  will be reviewed by the judge and decided definitively within two days at the latest.
Having thus become final, the lists and other points pertaining to the meeting will be certified and forwarded to the bar association cocerned or the Union of Bar Associations of Turkey.
The judge will appoint a ballot box board composed of a chairperson and two members from among public officials or attorneys who are not candidates. The judge will also appoint three alternate members on the same basis. The elder member will chair the board in the absence of the chairperson.
The ballot box board is charged with conducting the election as prescribed by the law, overseeing it, and counting the votes. This duty will continue uninterrupted throughout the election until the counting of the votes is completed.
In bar associations with more than four hundred members, there will be a ballot box for every four hundred people and a separate board will be formed for every ballot box. Increments of up to one hundred members will not be taken into consideration in determining the number of ballot boxes. The materials and supplies to be used in the elections will be obtained from the county election board. The locations of the ballot boxes will be determined by the judge.
Upon the completion of the election period, the election results will be recorded in a memorandum and signed by the chairperson and members of the ballot box board. If there is more than one ballot box, the memoranda will be consolidated by the judge.  The provisional results of the election will be publicized by posting a facsimile of the memoranda at the place where the election was held. The ballots cast and the other documents will be delivered to the chairperson of the county election board together with a facsimile of the memorandum for safekeeping for three months.
Objections against actions conducted in the course of the election and against the election results made within two days as of the drawing up of the memorandum will be reviewed and decided by the judge with finality on the same day. The judge will announce the final results in accordance with the foregoing provisions immediately after the expiration of the objection period and the adjudication of the objections; and will report them to the bar association concerned and the Union of Bar Associations of Turkey.
<Amended as per Article 3464/2 dated 28 May 1988> The voting will be closed and the counting of the votes will be open. Attorneys whose names are not in the list may not vote. Votes will be cast after the verification of the credentials of the voter on the basis of an identification document issued by a bar association or an official entity and after he/she puts his/her signature against his/her name in the list. The voting will take place by the insertion of a ballot – prepared for all organs combined or separately for each – in an envelope bearing the stamp of the county election board to be given by the chairperson of the ballot box board at the time of the voting. Ballots placed in other envelopes will be void. If a regular delegate has an excuse, an alternate delegate may participate in and vote at the general assembly meeting of the Union of Bar Associations of Turkey.
<Amended as per Article 4667/95 dated 2 May 2001> In the event the judge discovers an irregularity or an illegal action significant enough to impact the election results, he/she will decide the cancellation of that part of the election limited to the entity in connection with which the discovery was made. In such a case, the judge will set a future Sunday, not to be earlier than one month and later than two months, for the renewal of the election and will infor the bar association concerned or the Union of Bar Associations of Turkey accordingly. Only the election will take place on the date thus designated; and the electoral actions will be conducted in accordance with this Article and the other provisions set forth by the law.
The judge chairing the county election board and the chairperson and members of the ballot box board will receive fees for their services as prescribed by the Law on the Basic Provisions for Elections and Voter Records. These fees and the other expenses for the elections will be reimbursed out of the budget of the Union of Bar Associations of Turkey and the bar associations concerned.
Offenses committed against the chairperson and members of the ballot box board will be punished as if they have been committed against public servants.
Those who fail to observe the measures taken by the judge and the ballot box board in order to ensure the sound and orderly conduct of the elections will be punished with disciplinary penalties commensurate with the severity of their acts as prescribed by the present Law.

Inspection and Auditing
Supplementary Article 4 – <Added as per Article 3003/8 dated 8 May 1984>
The Ministry of Justice has the authority to inspect the operational affairs and  audit the financial affairs of bar associations and the Union of Bar Associations of Turkey, in accordance with the provisions to be determined by regulations, to ascertain their conformity to legal provisions. Such inspection and auditing will be conducted by inspectors and auditors of the Ministry of Justice.


Temporary provisions

Provisional Article 1 – <Amended as per Article 1238/1 dated 26 February 1970>
The initial standard policy to serve as a basis for the policies to be concluded between bar associations and the Social Security Association after 7 July 1969 in accordance with Article 86 of the Social Security Law, number 506, will be determined by means of discussions to be held among the Ministry of Labor, the Union of Bar Associations of Turkey, and the Social Security Association within three months as of the date of the first meeting to be held by the Union of Bar Associations of Turkey in accordance with Provisional Article 10 of the present Law. The standard policy thus prepared will be disseminated to all bar associations within one week by the Union of Bar Associations of Turkey. Bar associations having in their enrollment attorneys with an absolute requirement to join collective insurance will apply to the Social Security Association within two months as of the date of their receipt of the standard policy in order to conclude a collective policy patterned after the standard policy. The policies will be put into effect not later than three months as of the date of application by the bar association.
A) Of the attorneys who were older than thirty years of age on the date they became subject to collective insurance, those who were not entitled to a pension under old age insurance due to their non-fulfillment of the conditions prescribed in Article 60 of the Social Security Law, number 506, but do meet the following conditions will receive an old age pension in accordance with the provisions in Article 61 of the Social Security Law as do those who have completed fifteen years of insurance:
a) Proving their enrollment as an attorney in the directory of the bar association for a minimum of two thousand days during the ten years preceding the date of commencement of their insurance.
b) Having paid an average of at least two hundred days' worth of insurance premium every year during their insurance.
c) Having been insured for a minimum of five years.
The period of attorneyship mentioned in Subparagraph a will be determined by means of documents to be received from the respective bar associations and submitted to the Social Security Association not later than two years as of the date of commencement of insurance.
The right of the insured attorneys to claim damages from the chairperson and members of the board of directors of the bar association  concerned in the event the bar associations refrain from drawing up the aforementioned documents certifying the length of service in attorneyship.
In the event the falsehood of the documents indicating length of service in attorneyship is established by a court decision, both the persons who prepared such documents and the insured concerned will be under the obligation to reimburse the Social Security Association with the damages it will sustain thereof together with a surcharge of fifty percent and legal interest.
Criminal proceedings will also be initiated against the latter.
B) Of the attorneys who were older than thirty years of age on the date they became subject to collective insurance, those who are older than fifty and determined to be prematurely aged but were not entitled to a pension under old age insurance due to their non-fulfillment of the conditions prescribed in Article 60 of the Social Security Law, number 506, will receive an old age pension in accordance with the provisions in Article 61 of the Social Security Law as do those who have completed fifteen years of insurance provided that they meet the conditions stated in Paragraph A.

Provisional Article 2 – Of the attorneys whose total length of service countable towards retirement from the Retirement Fund of the Republic of Turkey is not less than fifteen years at the date of entry effect of the present Law,
A) <Amended as per Article 1238/3 dated 26 February 1970> Those who have departed prior to 7 July 1969 for any reason whatsoever from the official duty or service at which they paid retirement deductions may, in accordance with the following provisions, buy back and credit the full length of their past active service in attorneyship without a Social Security Association insurance, either, until 7 July 1969, or that portion of this period sufficient to add up to twenty-five years together with their former services countable towards retirement, provided that they are not receiving a retirement or disability pension.
Those buying back and crediting the full length of their past active service in attorneyship may maintain their relationship with the Retirement Fund of the Republic of Turkey in accordance with the provisions in Subparagraph B below. Those who do not wish to maintain their relationship with the Retirement Fund of the Republic of Turkey and those who have brought their length of service countable towards retirement up to twenty-five years by buying back and crediting past service will receive a retirement pension in accordance with the provisions below.
B) Those who have departed for any reason whatsoever from the official duty or service at which they paid retirement deductions on or after the date of entry into effect of the present Law may maintain their relationship with the Retirement Fund of the Republic of Turkey for a total period not to exceed thirty years.
In order to buy back and credit past service as stated in Subparagraph A, the attorney must apply to the Retirement Fund of the Republic of Turkey in writing through the bar association he/she is enrolled with within three months as of the date the respective bar association joined collective insurance. The amount to be bought back and credited will be equivalent to the total amount of the deductions (including the employer's contribution) that ought to have been paid in accordance with the provisions of the Law of the Retirement Fund of the Republic of Turkey for the length of the period of active service in attorneyship until the date of entry into effect of the present Law, starting with the attorney's seniority at his/her most recent salary grade or allowance grade in the official duty or service where he/she formerly paid retirement deductions to the Retirement Fund of the Republic of Turkey, and assuming that the attorney has stepped through promotions of grade every two or three years depending on the minimum interval between promotions applicable to that particular official duty or service. However, the deductions and the contribution of the employing organization will be calculated on the basis of the provisions of the Law of the Retirement Fund of the Republic of Turkey in effect in the past years to which they belong.
The sum of the period bought back and the periods of former official duty or service subject to the Retirement Fund of the Republic of Turkey may not exceed thirty years. Buying back any portion of the period of active service in attorneyship in excess of this figure is not permitted.
The amount to be bought back will be repaid either as a lump sum not later than one month from the date of the notice to be served by the Retirement Fund of the Republic of Turkey or in ten equal installments over ten years, depending on the attorney's declared choice. Attorneys who have recovered their deductions at their departure from their former official duty or service subject to the Retirement Fund of the Republic of Turkey will be under the obligation to return the entire amount, together with legal interest, to the Fund within the period of repayment of the lump sum or the first installment of the amount bought back. Those who do not return their deduction within the designated period may not benefit from the provisions of this Article.
Those who buy back and credit past service become entitled to a retirement pension in accordance with Law number 5434 based on the length of service to be calculated by adding the past service they bought back to their length of former official duty or service countable towards retirement, as of the date they have fully paid the amount they owe for crediting past service. A total period of twenty-five years is sufficient for entitlement to a retirement pension.
In the case of repayment in installments, disability pension or widow and orphan pension will be paid to the person or the entitled heirs of the attorneys who become disabled or die before repaying their debts in full, as of the beginning of the month following the disability or death, in accordance with the provisions of Law number 5434. However, each annual installment that has remained unpaid will be divided into twelve equal parts each of which will be deducted from the monthly disability pension or widow and orphan pension applicable to that year, the remaining amount of the pension being paid to the beneficiaries.
In the case of repayment in installments, the buying back status of those who default in the payment of an installment and fail to redeem their status within one month despite service of notice by the Retirement Fund of the Republic of Turkey will be terminated and action will be taken in accordance with the Law of the Retirement Fund of the Republic of Turkey by adding the period corresponding to their repaid installments to the length of their former official duty or service.
Those who are in receipt of a retirement or disability pension, and those whose entitled heirs are in receipt of a widow and orphan pension will also be paid a bonus in accordance with the provisions of the Law of the Retirement Fund of the Republic of Turkey based on their total length of active official duty or service preceding the period bought back.
In order to benefit from Subparagraph B, the attorney must have applied to the Retirement Fund of the Republic of Turkey in writing within one month following his/her departure from the official duty or service at which he/she was paying deductions to the Fund and must not be receiving a retirement pension or not have his deductions returned. For those benefiting from Subparagraph B through the reference of the second paragraph of Subparagraph A, this period will commence on the date they received notice of the acceptance of their request for buying back and crediting past service by the Fund.
The obligation to pay deductions to the Retirement Fund of the Republic of Turkey commences as of the beginning of the month following the date on which notice is served to the applicant of the acceptance of his/her application to benefit from Subparagraph B by the Fund. The deductions (including the employer's contribution) will be paid in the first week of each month directly to the Retirement Fund of the Republic of Turkey or through a bank to be designated by the Fund.
The deduction and the employer's contribution will be calculated on the basis of successive salary grades starting with the attorney's seniority at his/her most recent salary grade or allowance grade in the official duty or service where he/she formerly paid retirement deductions to the Retirement Fund of the Republic of Turkey, and assuming that the attorney has stepped through promotions of grade every two or three years depending on the minimum interval between promotions applicable to that particular official duty or service.
Relationship maintained with the Retirement Fund of the Republic of Turkey as per Subparagraph B will be terminated as of the beginning of the month following the date when the length of service countable towards retirement of the attorney concerned equals thirty years, when they request in writing the termination of their relationship with the Fund, when they die or become disabled under the Law of the Retirement Fund of the Republic of Turkey, or when they default in repayment within the one-month period granted by the Fund as per the regulations governing buying back past service; and they, or their entitled heirs, will start receiving a retirement, disability, or widow and orphan pension in accordance with Law number 5434.
Those whose total length of service countable towards retirement is fifteen years or more including the period they bought back in accordance with Provisional Articles 3, 4, and 5 may benefit from the provision in Subparagraph B of this Article.
<Additional paragraphs as per Article 1238/3 dated 26 February 1970>:
The adjustment of the pension levels of those benefiting from the provisions of this Article will be effected by adding the entire period they have bought back in accordance with Subparagraph A or the entire period have maintained their relationship with the Retirement Fund of the Republic of Turkey to their seniority at their most recent salary grade or allowance grade in the official duty or service, assuming that they have stepped, or are stepping, through promotions of grade every two or three years depending on the minimum interval between promotions applicable to that particular official duty or service.
Those who have let expire the one-month period set in the ninth paragraph of this Article for applying to the Retirement Fund of the Republic of Turkey may benefit from the provisions of this Article provided that they apply by 1 January 1971.

Provisional Article 3 – <Amended as per Article 1238/1 dated 26 February 1970>

A portion, not to exceed fifteen years together with the periods previously bought back in accordance with other laws, of the length of active service in attorneyship spent without being subject to the Law of the Retirement Fund of the Republic of Turkey and without Social Security coverage, prior to the official duty or service at which retirement deductions were paid, by those who were a participant in the Retirement Fund of the Republic of Turkey as of 7 July 1969, or between this date and the date of 1 January 1971, will be added to their length of service countable towards retirement provided that they buy back and credit past service in accordance with the provisions in the article added to Law number 5434 as per Article 5 of Law number 545 dated 23 February 1965. However, the amount to be paid by these people will be determined in proportion to the premiums and payments valid during the period which has been bought back.
The person concerned must apply to the Retirement Fund of the Republic of Turkey in writing by 1 April 1971 in order to benefit from the provision of this Article.

Provisional Article 4 – <Amended as per Article 1238/1 dated 26 February 1970>
A portion, not to exceed fifteen years together with the periods previously bought back in accordance with other laws, of the length of active service in attorneyship of those who were a participant in the Retirement Fund of the Republic of Turkey as of 7 July 1969, or between this date and the date of 1 January 1971, spent without subjection to the Law of the Retirement Fund of the Republic of Turkey and without Social Security coverage, followed by a term of official duty or service at which retirement deductions were paid, and preceded by an earlier term of official duty or service subject to retirement, thus falling between two periods of relationship with the Retirement Fund of the Republic of Turkey, will be added to their length of service countable towards retirement as per Provisional Article 3 provided that they borçlanmak in accordance with the provisions in the same article.
The provision of the last paragraph of Provisional Article 3 will be applied in this case, as well.

Provisional Article 5 – If the attorneys falling under the coverage of Provisional Articles 2, 3, and 4 have also rendered services covered by the Social Security Association before the period of active service in attorneyship they have bought back, the services covered by the Social Security Association will be combined with the services covered by the Retirement Fund of the Republic of Turkey (including the length of past service bought back) in accordance with the provisions concerning receipt of pension in Law number 228 dated 5 January 1961.
The terms of Provisional Article 3 will be applied by analogy to those wishing to benefit from the provision of this Article regarding the manner and continuance of their application to the Retirement Fund of the Republic of Turkey.

Provisional Article 6 – Attorneys registered with the Attorneys Benefit Fund on the date of entry into effect of the present Law may request to have their registration cancelled by applying to the bar association they are enrolled with.
The manner of reimbursement of the claims due in the Attorneys Benefit Fund to those whose registrations are cancelled in accordance with the above paragraph, depending on their periods of membership and the assets in the fund, will be determined by a regulation to be prepared by the board of directors of the bar association concerned and approved by its general assembly within three months as of the date of entry into effect of the present Law.

Provisional Article 7 – <Abolished as per Article 2178/8 dated 30 January 1979>

Provisional Article 8 – Those who have graduated from a school or faculty of political sciences and have passed examinations in the outstanding courses at a faculty of law before the entry into effect of the present Law will be treated as graduates of a faculty of law for the purposes of implementation of the present Law.

Provisional Article 9 – Those who have served as a chief registrar graduate in law at the Court of Cassation for a minimum of four years before the entry into effect of the present Law will be exempt from the condition in Article 3, Subparagraph c.
Provisional Article 10 – The president of the Bar Association of Ankara will request bar associations to elect and send delegates to the first general assembly that will convene in Ankara within two months as of the date of entry effect of the present Law to elect the president of the Union of Bar Associations of Turkey and the regular and alternate members of the board of directors, the disciplinary board, and the audit board of the Union. This request will be disseminated at least one month before the date of the meeting of the general assembly and will include information on the place, date, and time of the meeting, as well. On the scheduled day, the president of the Bar Association of Ankara will open the meeting and step down for the eldest delegate.

Provisional Article 11 – Those who had their novitiate, stated in Articles 2 and 7 of Law number 708 and Article 6 of Law number 2573, completed as of the date of entry into effect of the Attorneyship Law, number 3499, may be entered in the directory of a bar association if they satisfy the conditions indicated in Subparagraphs a, b, and c of Article 3 and in Article 5.
Graduates of the Medresetulkuzat [the Ottoman university for judges]and the Nüvap Mektebi [the Ottoman school for substitute judges] will be treated as law graduates in the implementation of the present Law.

Provisional Article 12 – No license of attorneyship without a law degree will be issued after the entry into effect of Law number 3499 and the present Law; and no license of attorneyship will be issued on the basis of Article 5 of Law number 708.
However, those who have completed four years of service in the branches of judge or prosecutor in terms of the combined lenths of their services before and after the entry into effect of Law number 3499 although they have not graduated from a law school or a faculty of law will be issued an attorneyship certificate by being held exempt from the provisions in Subparagraphs b and c of Article 3. This provision will not be applied to those who have been dismissed from their duties for reasons concerning their personal records.

Provisional Article 13 – Those holding a license of attorneyship without a law degree on the date of entry into effect of Law number 3499 may practice representation in places where five attorneys are not available. The vested rights are preserved of those who were practicing attorneyship without a law degreee in accordance with Provisional Article IV of Law number 3499 in places where five attorneys were not available before the date of entry into effect of Law number 3499.
<Amended as per Article 4667/96 dated 2 May 2001> In order to be able to practice their profession, attorneys without a law degree must be entered in a list maintained by the bar association to which their locality is attached. Bar associations are under the obligation to make a decision within one month as to the the acceptance of rejection of an application made for an entry in the list. If no decision or a decision of rejection is made within this period, the applicant may raise an objection with the Board of Directors of the Union of Bar Associations of Turkey at the end of the one-month period if no decision has been made, or within fifteen days as of the date of notification if a decision of rejection has been made.
These decisions made by the Union of Bar Associations of Turkey regarding the objections will become final if no decision is made by the Ministry of Justice within two months as of the date of their receipt by the Ministry of Justice or if the decisions are approved. However, the Ministry of Justice will return the decisions it does not deem appropriate to the Union of Bar Associations of Turkey for reconsideration together with the reasons for return. The decisions thus returned will be considered as approved if passed unchanged by a two thirds majority vote of the Board of Directors of the Union of Bar Associations of Turkey; otherwise they will be considered as not approved. The result will be communicated to the Ministry of Justice by the Union of Bar Associations of Turkey. The provisions of the sixth and seventh paragraphs of Article 8 will be applied here, as well, by analogy.
An entry in the list will entail the same consequences as enrollment with the bar association as far as exercising the rights and privileges granted to, and being subject to the obligations imposed upon attorneys without a law degree by the present Law.
The manner of preparation of the lists by bar associations; the actions regarding application for an entry in the list; the manner of dissemination of the list to courts, public prosecutors, enforcement and bankruptcy offices and other official authorities; and the manner of deletion from the list will be indicated in regulations referred to in Article 182 of the present Law.

Provisional Article 14 – Bar associations established in accordance with Law number 3499 and the supplements and amendments thereto will continue their operations in accordance with the provisions in the present Law.

Provisional Article 15 – The minimum fee tariff to be prepared in accordance with Article 168 will be accomplished within six months as of the date of entry into effect of the present Law. The former tariff will be applied until the new one enters into effect.

Provisional Article 16 – The files in the custody of the Attorneyship Ethics Council will be taken over and kept by the President of the Bar Association of Ankara to be turned over to the Disciplinary Board of the Union of Bar Associations of Turkey when the latter assumes its duties.

Provisional Article 17 – Persons who have worked for a minimum of ten years as a chief clerk, clerk of record, assistant clerk of record; or an enforcement officer or a deputy enforcement officer with judicial authorities, public prosecutors' offices, and enforcement offices may render services in lawsuits and cases restricted to civil courts and enforcement and bankruptcy offices in places where a minimum presence of three attorneys or attorneys without a law degree is not available if they possess the qualifications other than those regarding education, apprenticeship, and examination stated in Article 3 of the present Law and are not impeded by the conditions stated in Article 5, provided that they are entered in the list maintained by the bar association to which their locality is attached.
Such persons will be under the obligation to open an office in the place where they are authorized to render restricted attorneyship services not later than three months as of the date of their entry in the list. The names of those who fail to fulfill this obligation will be deleted from the list.
Those who were practicing attorneyship in accordance with the last paragraph of Article 61 of the Code of Civil Procedure, number 1086, before the date of entry into effect of the present Law will continue their practice restricted to the civil courts and enforcement and bankruptcy offices in their locality regardless of the condition regarding former service in the field of justice provided that they possess the remaining qualifications stated in the first paragraph, by having their names entered in the list maintained by the bar association to which their locality is attached. However, those whose names have been deleted from the list for any reason may not be re-entered in the list unless they possess all the qualifications stated in the first paragraph. Persons in this status will be under the obligation to apply for the entry of their names in the list not later than three months as of the date of entry into effect of this Article and to open and office not later than three months as of the date of their entry in the list. Otherwise they will not be entered in the list, and their names will be deleted if already entered in the list.
<Amended as per Article 1238/4 dated 26 February 1970> The right to practice attorneyship without a law degree in accordance with the foregoing paragraphs will automatically cease to exist when the number of attorneys or attorneys without a law degree in that place reaches three. An entry previously made in the list will be maintained by annotating the destination of the person concerned if he/she relocates his/her practice by opening an office in another locality within the jurisdictional area of the same bar association where three attorneys or attorneys without a law degree are not available within three months as of the date of cessation. If the person concerned applies to another bar association within the three-month period, he/she may continue practicing attorneyship by having his/her personal file brought over and name entered in the list of the new bar association, the person's entry being deleted from the list of his/her former bar association. The person's name will be deleted from the list if he/she does not relocate his/her practice by opening an office in another locality within the jurisdictional area of the same bar association within the three-month period or does not apply for transfer to another bar association within the same period.
The provision of the second paragraph of Provisional Article 13 regarding applications for an entry in the list will be applied by analogy to persons in this status, as well.
The points mentioned in the last paragraph of Provisional Article 13 regarding the list, and the contents of the certificate of authorization to be issued to those who will practice attorneyship in accordance with this Article will be indicated in the regulations referred to in Article 182 of the present Law.
The provisions of the present Law other than those in PARTs TWO, FOUR, FIVE, SEVEN, EIGHT, NINE, ELEVEN and TEN; and Articles 49, 57, 58, 59, 60, 61, 62, and 65 will be applied by analogy to the persons covered by this Article, as well.
The persons covered by this Article will not pay the dues of admission and annual dues charged by bar associations.
<Amended as per Article 1238/4 dated 26 February 1970> The third paragraph of this Article will be abolished on 7 July 1977.

Provisional Article 18 – <Amended as per Article 1238/5 dated 26 February 1970>
The adjustment of the pension levels of the persons concerned will be effected by evaluating two thirds of the length of past service bought back and credited in accordance with Provisional Articles 3 and 4 and added to the length of service countable towards retirement at increments of two or three years depending on the minimum interval between promotions applicable to their current official duty or service; and their monthly salaries for official duty or service, as well as their monthly salaries on which their retirement deductions will be based, will thus be raised.

Provisional Article 19 – <Added as per Article 2442/2 dated 1 April 1981>
Lawsuits being litigated in martial law military courts by those indicated in Article 1 and the paragraph appended to Article 14 of the Attorneyship Law on the date of entry into effect of the present Law will be transferred within three months in accordance with the provisions of the Attorneyship Law.

Provisional Article 20 – <Added as per Article 4765/1 dated 25 June 2002>
The provisions of Article 11 will not be applied to those who were working as teachers in schools of primary or secondary education and concurrently practicing the profession of attorneyship as well as those who were in the same status and were serving an attorney apprenticeship prior to 10 May 2001.

Supplementary Provisional Article 1 – <Added as per Article 2329/3 dated 31 October 1980>
After the entry into effect of the present law, the rate of one pro mille will be applied, regardless of the tariffs in effect, in the calculation of the proportional attorneyship fee to be adjudged for that portion of the value or amount under litigation which is in excess of one billion Turkish Liras regarding the suits to be filed and legal assistance to be initiated by the time the first tariffs to be prepared in accordance with the provisions of revised Article 168 become effective.

Date of entry into effect of the present Law
Article 200 – The present Law will enter into effect three months after the date of its publication.

Enforcement authority of the present Law
Article 201 – The present Law will be implemented by the Council of Ministers of Turkey.


PROVISIONAL ARTICLES NOT POSTED IN THE MAIN LAW NUMBER 1136 DATED 19 MARCH 1969

1) Provisional articles of Law number 3256 dated 22 January 1986

Provisional Article 1 – Subparagraphs A and B prescribe the rights to be granted to those in respect of whom the indicated actions were taken in accordance with Article 11 of the Attorneyship Law, number 1136, before the date of entry into effect of the present Law on the grounds of employment as a teacher in schools of primary education which was incompatible with attorneyship and attorney apprenticeship.
A) Those whose names were deleted from the bar association directory in accordance with Article 72, Subparagraph b of the above-mentioned Law due to their served apprenticeship being considered void, and those whose requests for enrollment in the bar association were rejected for the same reason despite their having been issued an apprenticeship completion certificate; those who could not enroll in a bar association because the decision of acceptance of their request by the board of directors of the bar association was not approved by the Ministry of Justice, or those who chose not to enroll may be enrolled in a bar association and practice attorneyship if they submit an application provided that they are not otherwise impeded.
B) Those whose names were deleted from the apprentice roster may be re?entered in it if they submit an application within three months as of the date of entry into effect of the present Law, provided that they are not otherwise impeded, and may continue their apprenticeship with the revalidation of the formerly served portion of their apprenticeship. Actions of deletion will be waived for those whose status requires such deletion provided that they are not otherwise impeded.
Those whose names were deleted from the bar association directory in accordance with Article 72, Subparagraph b of the Attorneyship Law, number 1136, due to their served apprenticeship being considered void, and those whose requests for enrollment in the bar association were rejected for the same reason despite their having been issued an apprenticeship completion certificate; those who could not enroll in a bar association because the decision of acceptance of their request by the board of directors of the bar association was not approved by the Ministry of Justice, or those who chose not to enroll on the grounds of being engaged in activities incompatible with attorneyship and attorney apprenticeship in accordance with Article 11 of the same Law before the date of entry into effect of the present Law may be enrolled in a bar association if they submit an application provided that they have disengaged themselves from activities incompatible with attorneyship and are not otherwise impeded. Those who have been enrolled with a bar association after serving an attorney apprenticeship in this manner will not be deleted from the attorney roster, either, provided that they are not engaged in any activity incompatible with attorneyship and are not otherwise impeded. Those whose names were deleted from the apprentice roster will be re?entered in it if they submit an application within three months as of the date of publication of the present Law, provided that they have disengaged themselves from activities incompatible with attorneyship and are not otherwise impeded, and will continue their apprenticeship with the revalidation of the formerly served portion of their apprenticeship. Actions of deletion will be waived for those whose status requires such deletion provided that they are not otherwise impeded.
Regarding those who served or were serving their attorney apprenticeship while engaged in an activity incompatible with attorneyship before the date of entry into effect of the present Law,
a) No criminal prosecution will be conducted.
b) Prosecutions previously initiated will be discontinued.
The penalties to which these persons have been sentenced shall be pardoned.together with their consequences.
The provisions of the Attorneyship Law pertaining to denial of admission into attorneyship, forfeiture of license by recovery, and permanent deletion from the roster will not be applied on the grounds of the aforementioned convictions to attorneys and apprentices whose punishments have thus been pardoned with all their consequences.

Provisional Article 2 – The first meeting of the general assembly after the date of entry into effect of the present Law will be held in the first week of the month of October in the second year following the date of its publication.

Provisional Article 3 – Those who were members on the disciplinary boards of bar associations or board auditors with bar associations or the Union of Bar Associations of Turkey on the date of entry into effect of the present Law will continue to serve in the same positions until the first meeting of the general assembly in which the board of directors will be elected.

Provisional Article 4 – Those who have graduated from a school or faculty of political sciences and have passed examinations in the outstanding courses at a faculty of law before the entry into effect of the present Law will be treated as graduates of a faculty of law for the purposes of implementation of the present Law.

2) Provisional articles of Law number 4667 dated 2 May 2001

Provisional Article 1 – The provisions prescribed in the present Law regarding the final examination at the end attorney apprenticeship will be applied to those who will apply for attorney apprenticeship after the publication of the present Law.
Those whose names were deleted from the bar association directory in accordance with Article 72, Subparagraph b of the Attorneyship Law, number 1136, due to their served apprenticeship being considered void, and those whose requests for enrollment in the bar association were rejected for the same reason despite their having been issued an apprenticeship completion certificate; those who could not enroll in a bar association because the decision of acceptance of their request by the board of directors of the bar association was not approved by the Ministry of Justice, or those who chose not to enroll on the grounds of being engaged in activities incompatible with attorneyship and attorney apprenticeship in accordance with Article 11 of the same Law before the date of entry into effect of this Article may be enrolled in a bar association if they submit an application provided that they have disengaged themselves from activities incompatible with attorneyship and are not otherwise impeded. Those who have been enrolled with a bar association after serving an attorney apprenticeship in this manner will not be deleted from the attorney roster, either, provided that they are not engaged in any activity incompatible with attorneyship and are not otherwise impeded. Those whose names were deleted from the apprentice roster will be re?entered in it if they submit an application within three months as of the date of publication of the present Law, provided that they have disengaged themselves from activities incompatible with attorneyship and are not otherwise impeded, and will continue their apprenticeship with the revalidation of the formerly served portion of their apprenticeship. Actions of deletion will be waived for those whose status requires such deletion provided that they are not otherwise impeded.
Regarding those who served or were serving their attorney apprenticeship while engaged in an activity incompatible with attorneyship before the date of entry into effect of the present Law,
a) No criminal prosecution will be conducted.
b) Prosecutions previously initiated will be discontinued.
The penalties to which these persons have been sentenced shall be pardoned.together with their consequences.
The provisions of the Attorneyship Law pertaining to denial of admission into attorneyship, forfeiture of license by recovery, and permanent deletion from the roster will not be applied on the grounds of the aforementioned convictions to attorneys and apprentices whose punishments have thus been pardoned with all their consequences.

Provisional Article 2 – The provision in the first paragraph, revised by the present Law, of Article 77 will not be applied to bar associations established on the date of entry into effect of the present Law.

Provisional Article 3 – The regulations to be prepared in accordance with the present Law will be issued within six months as of its date of entry into effect.

DATES OF ENTRY INTO EFFECT OF LAWS SUPPLEMENTING AND AMENDING LAW NUMBER 1136

   Law number   Articles entering into effect on different dates   Date of entry into effect
1   1186   ––   1 March 1969
2   1238   ––   7 March 1970
3   2018   ––   2 July 1976
4   2174   ––   10 November 1978
5   2178   ––   7 February 1979
6   2329   ––   4 November 1980
7   2442   ––   3 April 1981
8   2652   ––   20 April 1982
9   3003   ––   15 May 1984
10   3079   ––   21 November 1984
11   3256   ––   30 January 1986
12   3464   ––   2 June 1988
13   4276   ––   20 June 1997
14   4667   Article 9 Article 22Other provisions   10 May 200210 November 200110 May 2001
15   4675   ––   28 June 2002effective as of10 May 2002