Frequently Asked Questions
Transit trade is the sale of a commodity purchased from a company or storehouse, which was established abroad or in a free zone through our country in transit or directly to a company or storehouse, which was established abroad or in a free zone.
Export on credit or export on consignment refers to the special export types, regulated under the ‘’Exportation Regulation’’ published in Official Gazette no. 26190, dated 06/06/2006. Foreign exchange commitments closings periods start at the end of the special periods envisaged in this export types and thus exporters acquire time in terms of bringing the costs home. The applications are made to the General Secretariat of Exporters Association for both of the export types and the respective export annotations are entered in the Customs Declarations and approved by the General Secretariat. The permission period for export on credit (based on the nature of the work and the agreement between the parties) is maximum two years for the consumption goods and maximum five years in investment goods. For the export on consignment, it is essential to perform the firm sale within one year as from the export date of the commodity, this period may be extended two more years for rightful and compulsory reasons.
The trademarks are protected in the countries where they are registered. Therefore, a brand, which was applied for and registered in Turkey is protected only within the borders of Turkey. Especially the export companies are obliged to register their trademarks in the countries where they make exportation. If they do not register their brands in these countries, they are likely to come across the following negative cases;
Another business organization may have their brands registered for their behalf knowingly or unknowingly in the countries where they export their products and services and the recovery of this case is a process which generally takes a long time and that is very expensive.
It is possible to obtain customs clearance for their commodities or even there is the risk of expropriation.
It will be necessary to have brand registration regarding the official permits (food production permit, medication etc.) and standards (TSE in Turkey) for their commodities in the respective country.
Above all, it is not possible to brand in the countries of export unless brand registration is not carried out in that country.
If the companies do not export with their own registered brands, in other words; they produce the brands of other companies sub-production and derive profit in this way, it is for sure that this may be considered as a good method of generating an income for a short-term. However, the companies are preferred to export the products, which are their own brands in middle and long-termed marketing strategies.
If contract manufacturing is preferred, this will result in inability to compete with the companies in the countries, which make production with low costs in terms of contract manufacturing and this will bring forward price competition. Therefore, the future of the company is hypothecated although this is never desired. As a result, it means that the companies can catch long-term profit margins if they offer to the markets their registered brands, which they legally protect in the countries where they make exportation and the countries where they intend to make export in the future.