The exporters bringing 143.8 billion dollars to Turkey in 2016 will receive their subsidies by the Ministry of Economy at the speed of light.
* Subsidies amounting to 50,000 Turkish Liras for the general fairs, 75,000 for sectoral fairs and 250,000 for prestigious fairs
*UR-GE subsidy to last for 5 years instead of 3 years
* 19 fairs included in the scope of subsidy in 2017
Ministry of Economy, apart from accelerating the subsidies given to the exporters, increased the resources and subsidies allocated for the exporters by increasing them from 1 billion Turkish Liras to 3 billion Turkish Liras in 2017, thus putting new support mechanisms into operation. Ministry of Economy Export Assistant General Manager Mehmet Ali Kılıçkaya said that one of the subsidies that are used most by the exporters is the fair subsidy, and stated in the “State Aid Information Meeting” held in the Aegean Exporters’ Association, that 19 domestic fairs that attract foreign participants are included in the scope of the subsid by the Ministry of Economy. Mehmet Ali Kılıçkaya, stated that the exporters are rightfully react to the extending bureaucracy for their fair subsidy demands since they receive their subsidy 1 year after they apply. He said that they introduced other new subsidy types such as Global Supply Chain Input Support, E-Commerce Site to Public Member Support, the Eximbank Buyers Loan Interest Support and Eximbank Insurance Disposal Support.
“A late incentive is not an incentive at all”
Mehmet Ali Kılıçkaya said on the new subsidy changes: “A late incentive is not an incentive at all. Incentives should be timely. Our concern is to come to fruition. We are accelerating the process. We are taking a radical step, by which the exporters attend fairs more often. As the Ministry of Economy, we will determine the amount of subsidy per square meters beforehand. The company determined that the report of the Ministry attended by many observers to be fair and square exporters’ unions will soon perform the payment of support to our company exhibition. With how many square meters the exporters attend fairs are going to be determined by the reports from Ministry observers and thus, unions of exporters will pay fair subsidies to firms in a short period of time. We will save companies and organizers of the paperwork burden. New implementation is going to come into force on July 1, 2017.” Mehmet Ali Kılıçkaya, also stated that the upper limits of the fair subsidies are updated as follows: 50,000 Turkish Liras for general fairs, 75,000 Turkish Liras for sectoral fairs and 250,000 Turkish Liras for prestigious fairs.
Domestic fairs with international quality will receive their support.
Kılıçkaya, sharing that the Ministry of Economy has introduced new subsidy programs besides the current support programs, said that one of the new state subsidies is the subsidy for participation in the domestic fairs which gained international identity. Kılıçkaya stated that they consider the number of foreign visitors and the number of foreign firms participating in the fair, whether the fair has an international identity in the selection of the fairs to be supported in the country. And he continued: “We think that these kinds of fairs contribute to the increase of our exports. We support 50 percent of the cost of the space lease and stand construction costs of the participant firms up to 30,000 Turkish Liras. 19 fairs are to be subsidized for the year 2017. We could not implement the international fair subsidy model in the national fair subsidies. Applicants need to apply in written forms. In the future, we can bring the financial supports in terms of square meters up the agenda, also for national fairs.”
International Competition Development subsidies up to 5 years.
Kılıçkaya stated that International Competition Development Project expenditures to introduce the clusters to the international arena in the target markets are within the scope of the subsidies. He said: “We will move the International Competition Development projects to their own channels and act with a proper approach. We will be able to increase the support period for International Competition Development projects from 3 years to 5 years depending on the performance of the project. It will be possible to participate as a visitor in the fairs that take place abroad, once in a year.”
Acquire a company with advanced technology
Mehmet Ali Kılıçkaya, noting that Subsidy for Acquisition of Foreign Companies with Advanced Technology within the context of market research and market entry subsidy by the Ministry of Economy, stated that the number of applications for the said subsidy is less than the expected. Kılıçkaya stated: “In the acquisition process, we support with the rate of 75 percent, up to 500,000 dollars. We provide 5 percent interest support in TRY denominated credits. This number for the foreign currency denominated credits is annual 3 million dollars for 5 years. We invite the exporter firm to use this subsidy.”
Exporters will be suppliers to global chains with government subsidies.
One of the subsidy types that the Ministry of Economy has introduced is “Subsidy for Entry to the Global Supply Chain”. If the firm that wants to receive this subsidy brings a letter of intent from the global supplier with which it will start a business, the firm will receive support with the expenses of certification, document, software, training, testing, new machine investment, equipment purchasing, office and warehouse expenses.
Collective memberships to E-Commerce sites through cooperation organizations such as the Turkish Exporters Assembly, Exporters’ Unions, Chambers of Commerce and Industry will be able to apply for the subsidy of the Ministry of Economy in the new period.
When the cooperating organization that brings together 250 companies submits to the Ministry of Economy for subscription to E-Commerce sites, membership fees will be supported by 80% for 3 years. While the co-operative organization can apply to receive subsidy for 5 e-commerce sites, up to 2,000 USD subsidies are provided annually. Interest support for Eximbank buyer credits was one of the subsidy types that the Ministry of Economy has recently introduced. With this subsidy, it is aimed to increase the exports of machinery and investment goods by providing loans with lower interest rates to foreign buyers. Interest expense corresponding to the difference between the interest rate applied by Eximbank and the Commercial Interest Reference Rate (CIRR) applied in OECD countries will be paid to Eximbank by the Ministry of Economy in medium and long term investment goods exporting credits.
Market entry documents will be supported by 50 per cent up to 250 thousand dollars
Environmental and quality documents, human life, property safety and safety signs and test / analysis report acquisition costs, laboratory analysis and certification costs for agricultural products which they obtain from an accredited institution or organization and which are advantageous for entering a country market for exporters will be supported by 50 per cent up to 250,000 USD per company annually. 25,000 USD limit per document in the market entry documents has been removed. Thus, the high-cost document costs which some sectors have trouble with, has begun to be subsidized.
“Ünlütürk: We care about CGF (Credit Guarantee Fund) and Eximbank agreement”
Sabri Ünlütürk, Coordinator Chairman of Aegean Exporters’ Associations, stated that the exporters were happy that the state subsidies provided by the Ministry of Economy were increased to 3 billion Turkish Liras in 2017 in order to maintain Turkish export rise and to improve the competitiveness ability of Turkish exporters.
During the State Subsidies Information Meeting hosted by Aegean Exporters Union General Secretariat, not only Mehmet Ali Kılıçkaya who is the Directorate General Assistant in Export Department of Ministry of Economy, but also the Fatih Aydın who is the Directorate General of Department of Free Zones, Overseas Investments and Services in the Ministry of Economy, Dr. M. Yurdal Şahin who is Deputy Director General of Department of Promotion of Foreign Exchange Earning Service Trade, Expert Selcen Topal and Fatih Ağın who is Turkish Eximbank Marketing Manager gave beneficial information on their subject matters.
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