Support to be provided to foreign logistics distribution networks has been announced

Up to 60 million TL per network will be provided for various expenses related to the distribution network, which will operate for the first time in an integrated manner with the facilities established abroad.

20.04.2022 09:49:000

The procedures and principles for supporting the establishment and operation of overseas logistics distribution networks (YLDA) have been determined.

With the decision which came into force after being published in the Official Gazette, it aims to establish the infrastructure opportunities that will stabilize the country’s export performance with important markets, ensure the efficient and complete flow of exports from the Turkey, to ensure the penetration of exporters into international supply and distribution chains more quickly and at competitive prices. It aims to cover the expenses related to the establishment and operation of the business from the Support Fund and price stabilization.

In this context, cooperation organizations and users based in Turkey will be supported. Thus, in order to manage the facilities established for the first time abroad and all the end-to-end logistics processes, the expenses for installation, support, maintenance, information systems, technical equipment and decoration, investments, licenses and the distribution network that will operate integrated with these facilities, the mobile warehouses and the operation of this network and the permit fees, the costs of legal advice related thereto and the costs of Lease and Operation of Foreign Strategic Assets (YSV) will be borne 70% and up to a maximum of TL 60 million by YLDA.

For warehouses and mobile facilities, which are leased overseas or for which third-party logistics services are purchased, approved by the Ministry of Commerce, gross rent, license and permit fees, commission fees and fees related legal advice, including taxes, duties, fees, are 70% for the first 2 years and 70% for the other years. Up to 50 and a maximum of 24 million lire per year per YLDA will be provided.

Advertising, promotion and marketing activities for YLDA abroad will be supported up to 50% and a maximum of 3 million lira per year, while advertising, promotion and marketing activities carried out in the country will be supported up to 50% and a maximum of 1 million lire 200 thousand lire per year by YLDA.

The gross salaries of a maximum of 10 people employed simultaneously at YLDA, whose qualifications are determined by the Ministry, are 70% in the first 2 years, 50% in the other years and up to a maximum of 4 million 800 thousand lire per year by YLDA, provided that it does not exceed 600 thousand lire per year.

Expenditure for the establishment and technical infrastructure of freight exchanges approved by the Ministry of Commerce with a view to bringing together shipowners and freight carriers on the same platform in order to eliminate the risk of destructive prices and competition on logistics costs, facilitating access to finance for logistics companies and reducing freight transaction costs. Aid will be granted up to TL 600 million.

Support Hours

For YLDA to be included in the scope of support, a request must be submitted to the Ministry of Commerce with a project including a feasibility report from the cooperation organizations and the project must be approved.

The networks concerned will be subject to the coordination and control of the commercial council, the commercial attaché and the representative of the Ministry of Commerce. The cooperation organizations will benefit from this support for a maximum period of 5 years.

Following the evaluation to be carried out within the framework of the performance criteria determined by the circular, the ministry may grant an additional support period not exceeding 5 years to YLDAs having met the performance criteria over the last 3 years.

YLDAs that do not meet the performance criteria for 3 consecutive years will be excluded from the scope of support. The number of YLDAs to be supported each year will be determined by the ministry. Depending on the year, the number of YLDAs supported will not exceed 8.

If the expenses listed in the submitted documents regarding the payment of alimony, including indirect taxes, are in Turkish lira, if they are in foreign currency, based on cross rates and currency purchase rates listed in the list of “indicative CBRT rates” on the date of the payment document, Turkish lira against US dollar, to be paid by the Price Support and Stabilization Fund. At least 50% of the products of Turkish origin will be distributed in the YLDAs established and operated under the decision.

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