Laws

Agricultural Products Licensed Warehousing Law no. 5300 

Official Gazette no. 25730 dated 17.02.2005

 CHAPTER ONE

Purpose, Scope and Definitions

Purpose

ARTICLE 1 — The purpose of this Law is to facilitate the trade of agricultural products, to establish a common system for the storage of the products, to ensure the safety of the goods of product owners and to protect their quality, to ensure determination of the class and degree of the products by the authorized classifiers, to ensure that agricultural products licensed warehouse operators to accept agricultural products without discrimination between the persons, to issue a warehouse receipt that represents the ownership of the products and provides their financing, sale and delivery, and to regulate the procedures and principles regarding the establishment, operation and supervision of the agricultural products licensed warehousing system in order to improve the trade of the agricultural products within the specified standards.

Scope

ARTICLE 2 — This Law covers the procedures and principles regarding the establishment, operation and supervision of the licensed warehousing enterprises and authorized classifiers, and other issues related to the licensed warehousing system, with the aim of facilitating trade through the warehouse receipt with storing the agricultural products in safe and healthy conditions by determining their standards.

Definitions

ARTICLE 3 — The definitions of the expressions mentioned in this Law are as follows;

Ministry: the Ministry of Industry and Trade,

Related ministry: Ministry of Agriculture and Rural Affairs and the Ministry to which the Undersecretariat of Foreign Trade is connected,

Fund: Licensed Warehousing Compensation Fund,

Agricultural products: Basic and processed agricultural products that can be standardized such as grains, legumes, cotton, tobacco, nuts, oil seeds, vegetable oils, and sugar suitable for storage,

Licensed warehouse: Facilities providing the services of preservation in healthy conditions and storage for commercial purpose of the agricultural products within the scope of this Law,

Licensed warehouse enterprise or licensed warehouse operator: A joint-stock company engaged in the storage of agricultural products and having a valid license certificate under this Law,

Licensed warehouse guarantee: Cash, bank letter of guarantee, Government bond, stock, pledge on land, insurance guarantee and other cash convertible assurances accepted by the Ministry,

License: The document showing the activity permit issued by the Ministry,

Warehouse receipt: Negotiable instrument subject to the ware receipt provisions regulated by the Turkish Commercial Code, in cases where the property of the products is represented and the pledge is guaranteed, they are regulated to the name or order by the licensed warehouse operator, they can be given as collateral, they can be or cannot be endorsed, and not foreseen in this Law.

Warehousing services: Services such as weighing, unloading, loading, transporting, shipping, making suitable for storage and conditions and storing, repairing the product packages, removing the product from the warehouse of the products that are accepted to the licensed warehouse,

Depositor: Natural or legal person delivering its product to the licensed warehouse for warehousing services or holding the warehouse receipt regulated by the licensed warehouse operator in accordance with the legislation,

Authorized classifier: Natural and legal persons operating the laboratories licensed under this Law and analyzing the agricultural products, determining the qualities and properties of the product, classifying them according to the standards, and certifying this situation,

Stock Exchange: The commodity exchange where the warehouse receipts, which are regulated by the licensed warehousing enterprise, are quoted, bought and sold, and their movements are controlled and tracked within the framework of the contract between them, or the commodity exchange market received permission for buying and selling warehouse receipt from the Ministry.

 CHAPTER TWO

Establishment, Guarantee, Insurance and Those Who are Prohibited to Be a Licensed Warehouse Operator

Establishment 

ARTICLE 4 — The agricultural products licensed warehouse enterprises are established as an incorporated company with the permission to be given by the Ministry by takinginto consideration theeconomic needs and conditions of activity. At the establishment of the company, the conditions for submitting the documents shown in the regulation regarding the possession of the paid capital amount determined by the Ministry according to the storage capacity, not to be less than one trillion TL, are also sought. The articles of associations and establishment procedures of these companies shall be made in accordance with this Law and other relevant legislation. The Ministry may also draw up the articles of associations of such companies as printed.

The company's share certificates are issued in the form of registered shares. The amendment of the articles of association of the company, its partners and partnership interests is subject to the Ministry permission.

The activity permit is granted to the company that receives the establishment permit only in case it is determined that it has the conditions stipulated by this Law. The company cannot accept product, draw up warehouse receipt without getting activity permit.

Companies that will operate in this manner have to have the words 'Agricultural Products Licensed Warehousing' in their titles.

The opening a branch and changing the scope of the license of the agricultural products licensed warehouse enterprise is also subject to the permission of the Ministry.

Licensed warehouse guarantee

ARTICLE 5 — Applicants for getting license to operate a licensed warehouse have to provide a licensed warehouse guarantee in the amount specified by the Ministry, not to be less than 15% of the current market value of the product of the storage capacity, in accordance with this Law. The rate of pledge on land within the total guarantee amount is regulated by the regulation.

The Ministry is authorized to make completed the licensed warehouse guarantee amounts.

Insurance 

ARTICLE 6 — The licensed warehouse operators must insure against the risks specified in the regulation for the products they store in the scope of operating facilities and licensed warehousing as a license condition.In the insurance policy for the stored product, the policy beneficiary is the depositorat the time the damage occurred.

In the event of damage within the scope of the insurance in a licensed warehouse, the licensed warehouse enterprisepromptly notifies the Ministry and the related insurance company of this situation and the possible amount of damage. In the loss account, the average price on the stock exchange at the time the relevant product was damaged; if the average price on the stock exchange cannot be determined, the average price on the domestic and/or foreign reference stock exchange or stock exchanges determined for the product by the Ministry shall be taken as the basis.

As long as the licensed warehouse operator does not have a legally valid excuse, it is obliged to submit the all requested documents to the relevant insurance company at the latest five working days following the determination of the damage, and the insurance company is obliged to pay to the depositor at the latest ten working days following the receipt of the documents.

In case a reason resulting in the termination of the insurance contracts stipulated under this Law arises, the relevant insurance company is obliged to inform the Ministry and the licensed warehouse enterprise immediately. The termination of the insurance contract shall only be effective after the expiry of thirty days from the date of receipt of such notification by the Ministry.

The Undersecretariat of Treasury determines the qualifications to be sought in insurance companies that will make insurance under this Law and the insurance companies that meet these qualifications in April every year and notifies the Ministry.

Those who are prohibited to be a licensed warehouse operator

ARTICLE 7 — Even if they have been granted with amnesty, those who were sentenced with penal servitude or imprisoned for more than five years, or sentenced for infamous crimes such as debt, perpetration, embezzlement, bribe, robbery, forgery, fraud, misuse of faith, fraudulent bankruptcy, smuggling, and due to crimes of conspiring to the official tender and trades; and those who were sentenced with penal servitude or imprisonment for violating this Law cannot operate a licensed warehouse, cannot become a partner with these, and cannot perform executive and auditor duties.       

Those who are not sentenced under the above clause, but whose warehouse license is canceled in opposition to their desire and will cannot also operate a licensed warehouse, cannot become a partner with these, and cannot perform executive and auditor duties for three years.

 CHAPTER THREE

License, License Fees and Other Fees

Warehousing license

ARTICLE 8 — It is obligatory to obtain warehouse license from the Ministry to perform licensed warehousing activities. Licensed warehousing activity cannot be performed, any name, title, sign and so on,which will leave the impression of licensed warehouse or licensed warehouse enterprise, cannot be used without receiving license from the Ministry.

A license can be issued for storing two or more types of products in a licensed warehouse enterprise. Which products can be stored and their maximum capacity are indicated in the license.

This license is declared in the Turkish Trade Registry Gazette.

Warehousing license is non-transferable and all branches of the licensed warehouse enterprise operate under the same license.

If the licensed warehouse business also wishes to undertake authorized classifying activity, the authorized classifier license is issued separately from the warehousing license.

A license change is required when the company title and storage capacity change.

The amendment and renewal of the license is also subject to the same basis and procedure as getting a license.

The documents and information to be sought when the license showing the activity permit is given to the warehouse operator are shown in the regulation.

Rejection of license request

ARTICLE 9 — As a result of the assessment by the Ministry, in case the company and warehouse are not suitable for the storage of the products or do not meet the necessary conditions, the company partners, managers and supervisors do not comply with the requirements of Article 7, or if there is a valid reason preventing to give license or a confidence and commercial reputation shaking reason; requests for a warehousing license or making amendments in the license are rejected.

Return of the license

ARTICLE 10 — The license is returned to the Ministry if the license is suspended, canceled by the Ministry, or the license period expires. The license not canceled within the suspension period is returned to the warehouse operator. Decisions of the Ministry regarding the suspension, return or cancellation procedures are made to be declared in the Turkish Trade Registry Gazette.

Loss of license certificate

ARTICLE 11 — The licensed warehouse operator whose license certificate is lost applies to the Ministry with itsjustifications. In this case, the Ministry issues a new license certificate to be given to the licensed warehouse operator.

Authorized classifier license

ARTICLE 12 — Agricultural products, which are entrusted to the licensed warehouse, are analyzed and classified by the authorized classifiers with the license under this Law.

A condition of getting license may be set by the Ministry for the personnel, who will be employed in a licensed warehouse enterprise or in the authorized classifier, to analyze the agricultural products, take sample, classify and for other works that require specialization under this Law.

Licenses granted pursuant to this article may be suspended or canceled by the Ministry in accordance with the principles and procedures specified in the regulation in case they are used against the legislation.

The procedures and principles regarding the licensing, operation and supervision of the authorized classifiers and the conditions to be possessed by the personnel to be employed here are regulated by the regulation.

Validity and extension of license

ARTICLE 13 — Licenses granted under this Law are valid for two years. On the expiration date, the validity period of the licenses is extended by the Ministry for the same period in accordance with the rules specified in the relevant legislation and license.

License fees and other fees

ARTICLE 14 — Fees regarding all kinds of license that are granted under this Law, extended changed, or renewed are collected in advance to be recorded as revenue to the general budget by the Ministry.

License fees are determined by the Ministry to be valid from 1 January each year. Storage capacity is taken into account when determining license fees.

The Ministry may request that all or a part of the fees and expenses related to the services provided with the supervisions it will perform or get performed under this Law to be met by related persons. In this case, related persons pay the fees and expenses within the latest ten working days.

CHAPTER FOUR

Warehouse receipts

Drawing up a warehouse receipt

ARTICLE 15 — If a product is delivered to and accepted by the licensed warehouse enterprise, a warehouse receipt is drawn up for the product in question. Weighing receipt issued other than the warehouse receipt during deliveryand similar documents having the nature of evidence can also be used for proof of ownership of the product. The warehouse receipt or other documents having the nature of evidence guarantee to return the product to the depositor in the same amount, type, class and quality, and this delivery means deposit, not sale.

The warehouse receipt and other certificates issued subjecting to the provisions of this Law are not considered as futures and option contracts drawn up pursuant to the Capital Market Law no. 2499.

The procedures regarding the content, shape and protection of the warehouse receipt are regulated in the regulation.

Warehouse receipts can also be created in electronic media to be with force of the printed warehouse receipts. The procedures and principles regarding drawing up, protection and security of the electronic warehouse receipts, the licenses, activities, audits of the institutions to carry out these services, and other issues are regulated by the regulation without prejudice to the provisions of relevant legislation.

Person authorized to sign warehouse receipts

ARTICLE 16 — Licensed warehouse operators register and declare the original signatures of the person or persons authorized to sign the warehouse receipts in the trade registry with their name. If there is any change in the persons authorized for signature, the same procedure is also followed.The licensed warehouse operator is responsible for the regulation of the warehouse receipt in accordance with the legislation.

The loss, damage and seizure of warehouse receipts

ARTICLE 17 — No other warehouse receipt can be issued for all or a part of the agricultural product represented by the warehouse receipt that is regulated and not canceled under this Law.

In case of loss or damage of the warehouse receipt, the owner of the warehouse receipt applies to the court to take a decision within the framework of the provisions related to loss of warehouse receipt of the Turkish Commercial Code for identification of the property. According to the court decision, the licensed warehouse operator issues a new warehouse receipt.

The seizure of the agricultural products connected to the warehouse receipt is only made by the seizure of the warehouse receipt under this Law.

 CHAPTER FIVE

Rights and Obligations of Licensed Warehouse Operator, Delivery of Product,

Contract Liability with Stock exchange,

Record and Books, and Fee Tariff

Rights and obligations of the licensed warehouse operator

ARTICLE 18 — The rights of the licensed warehouse operator are:

To charge a fee within the framework of the fee tariff approved by the Ministry for the storage services.

To use the right of imprisonment on the stored product if the fee is not paid.

To reject the storage of products in the cases specified in the Law.

To use other rights stipulated in this Law and the relevant regulations.

The obligations of the licensed warehouse operator are:

To take necessary measures for the protection and maintenance of license conditions and to inform the Ministry immediately if these conditions are lost.

To be careful in acceptance of the products to the licensed warehouse, in storing them by mixing with other products or separately, in making them suitable for the conditions, in their transportation, delivery and other services, not to distinguish between persons under the same conditions, and to take all necessary measures to protect the product.

To draw up the warehouse receiptin return for the received product, and other documents unless there is a provision contrary to the relevant legislation.

To deliver the product and to cancel the warehouse receipt upon request of depositor.

To provide the flow of information related to the warehouse receipts to the stock exchangeregularly, to allow inspection and control upon request of the stock exchange, when necessary, to confirm its records with the stock records.

To act in accordance with the fee tariff and not to discriminate between the depositors.

To keep records and books stipulated in laws and regulations.

To provide information, documents and reports to be requested directly by the Ministry or during the audit and to fulfill other duties and instructions given by the Ministry under this Law.

To comply with other provisions stipulated in this Law and related regulations.

Licensed warehouse fee tariff

ARTICLE 19 — The licensed warehouse operator may request fee within the framework of the pre-determined and known licensed warehouse fee tariff for the storage services of the products accepted into the licensed warehouse. Which services are included in the scope of the storage service and their fees are clearly specified in the fee tariff.

The fee tariff and the changes in the tariff enter into force after approval by the Ministry, as a licensing requirement, and on the date of its publication in the Turkish Trade Registry Gazette.

Confusing products, premium and discount tariff

ARTICLE 20 — Licensed warehouse operator may confuse the agricultural products with the other agricultural products of the same plant species, class and degree of product. In this case, small quality differences that may occur in the delivery of the product to the depositor are compensated according to the premium and discount tariff. Premium and discount tariff and the changes to be made in this tariff are prepared by the licensed warehouse enterprise and approved by the Ministry by taking the opinion of the stock exchange.

Delivery obligation, place, time and right of imprisonment

ARTICLE 21. — The licensed warehouse operator delivers the product without delay unless there is a legally valid excuse upon the request of the depositor. It retrieves and cancels the warehouse receipt of this product in its delivery. If the depositor requests partial delivery, the existing warehouse receipt is canceled and a new warehouse receipt is issued for the part that has not been delivered.

However, the licensed warehouse operator has the right of imprisonment for the claims arising from the services carried out on the agricultural products in its licensed warehouse, including accepting, storing and delivering these products.

The products are delivered from the licensed warehouses where they are stored. However, depositor requests for the receipt of its product from another licensed warehouse can be met within the framework of the procedures and principles specified in the regulation.

If the product is not retrieved from the warehouse, the licensed warehouse operator notifies the depositor in writing and so as it reaches to the depositor at least thirty days before the expiry date of maximum storage indicated in the relevant regulation. At the end of this time, a part or the entire product that is not retrieved can be sold by the licensed warehouse operator in accordance with the nature of the product and the market conditions. In this case, the licensed warehouse enterprise drops the fees and expenses and pays the remaining amount to the related persons within seven working days.

Obligation to contract with the stock exchange

ARTICLE 22 – A contract is made between the licensed warehouse enterprise and the stock exchange in order to guarantee to carry out trade and follow-up of the warehouse receipts in confidence. In the contract, quotation of warehouse receipts on the stock exchange, control and follow-up of their transactions, their confirmation, cancelation, ensuring regular flow of information, inspection and control of the products in licensed warehouse by the stock exchange when necessary, and the information communication system between them, and other issues are regulated.

The contract and amendments to be made in contractonly get into effect after approval of the Ministry.

Records and books

ARTICLE 23 — Each licensed warehouse operator is obliged to keep records of all products entering and leaving the licensed warehouse fully and correctly, and a warehouse receipt book certified by notary for the warehouse receipts, and any other books required to be held by law.

The Ministry may make the licensed warehouse enterprises obliged to submit their past financial statements that have been audited independently within three months following the end of the business year.

Books, insurance policies, canceledwarehouse receipts, storage records and all other records and documents, including those kept electronically, are kept by the licensed warehouse operator for a period of ten years.

 CHAPTER SIX

Licensed Warehousing Compensation Fund and Right of Application of Those Injured

Licensed Warehousing Compensation Fund

ARTICLE 24 — The Licensed Warehousing Compensation Fund, which has a legal entity, is established in order to compensate the damages arising from the failure of the licensed warehouse operator to fulfill the obligations stipulated in this Law and the contract with the depositors.

Fund managementconsists of a total of five persons, including two representing the Ministry from the unit related to the licensed warehousing, one for each representing the licensed warehouses, stock exchanges and producers. The same number of substitute members is determined. The representative of the stock exchanges is assigned among their executive board members by the Turkish Union of Chambers and Exchange Commodities, the representative of licensed warehouse is assigned by a majority votes between themselves, and a member representing the producers is assigned by the Ministry of Agriculture and Rural Affairs. The period of the Executive Board membership is two years. Members can be re-selected.

The revenues of the fund are as follows:

Five-per-thousand of the wages in that calendar year that the licensed warehouse business collects for licensed warehousing services every year.

Ten percent of the stock exchange registration fees to be collected from the purchase and sale of the warehouse receipt on stock exchanges.

Half-thousand of the price of transaction of the warehouse receipt on stock exchanges.

Collection and interest income.

Donations, aid and other income.

The expenses of the fund are as follows:

Payments related to damages of depositors.

Expenses related to activities, training and auditing required for the implementation of this Law and the development of licensed warehousing.

Fund current and management expenditures needed to perform the tasks given in this Law and to be limited with these.

Monthly wage is paid to the Fund board members in the monthly gross minimum wage amount.

Following the establishment of the Fund, a grant of two trillion TL is allocated to the Fund's budget for once from the general budget of the current or following fiscal year. The Fund management may apply to the Ministry to change the rates of the Fund’s revenues together with the reasons in accordance with the results of evaluation that it makes on the adequacy of the Fund resources. If the Ministry deems this application appropriate, it proposes to the Council of Ministers the rates to be changed. The Council of Ministers is authorized to reduce the rates of the Fund revenues specified in the clauses (a), (b) and (c) to zero or to increase them up to double its amount.

Guarantees to be obtained under this Law are regulated on behalf of and in the name of the Fund. Preserving these guarantees, cashing and paying them to those injured as prescribed by Law, legal proceeding, filing suits for the related persons, collection, adequacy, repayment of the guarantee in case of cancellation of the warehousing license after the determination that there is no indemnity or obligation of the licensed warehouse enterprise, and notifying these to the Ministry, other issues and transactions are fulfilled by the Fund management.

The incomes of the Fund cannot be transferred to the general budget or other funds and cannot be used for other purposes.

The working procedures and principles of the Fund and other issues related to the Fund is regulated by regulation.

Right of application of those injured

ARTICLE 25 — If the damage cannot be paid under insurance and if it arises from that the liabilities of the licensed warehouse operator stipulated in this Laware not fulfilled for any reason;the necessary applications are made and the damage is compensated according to the procedure shown below:

Those injured applies to the licensed warehouse for compensation of the damage via notary or with a registered letter or with a report indicating the situation that is signed by the licensed warehouse operator and the depositor.

If the damage is not compensated or resolved within the framework of the settlement within seven working days from the notification of the application, it is transferred to the Ministry and stock exchange by those injured together with the status documents.

The stock exchange investigates the peace opportunity of the parties with a preliminary examination at the latest seven working days following the application, and informs the Ministry of results.

If it is not possible or if it is deemed necessary, the Ministry makes the necessary inspection performed by the committee consisting of two experts appointed by the stock exchange upon the request of the Ministry together with two auditors appointed by the Ministry. The committee completes their works within the coordination of the Ministry auditors within twenty days, and connects them to the report. This period may be extended by the ministry for further ten days on a reasoned request. The Ministry auditors also carry out determinations and investigations for the criminal responsibility of the related persons.

In the report, if a damage or liability required to be paid by the licensed warehouse enterprise is determined, the Ministry makes the necessary notification to the enterprise and it is requested to pay the damage to the related persons and fulfill the obligations within seven working days form the notification date.

Upon understanding that the mentioned obligation has not been fulfilled, it is transferred to the Fund together with the status documents. The Fund, without delay, resolves the cash guarantee of the licensed warehouse establishment and pays it to the depositor. If this guarantee is not sufficient to compensate the loss, the remaining part is paid from the Fund. If the payment made from the fund is not deposited by the licensed warehouse operator within the period determined by the Fund, the mortgages given as guarantee are converted into cash by the Fund and recorded to the Fund as income. The Fund informs the Ministry of the results of transactions and the status of guarantee.

The licensed warehouse operator or the depositor may apply to the stock exchange against the transaction and may request the arbitration board to decide on the problem. In this case, the stock exchange firstly investigates the possibility of parties’ peace, and if peace is not possible, it appoints the arbitration board to investigate the issue.

The arbitration board finalizes their examination within maximum three months after its appointment and informs the Ministry of its decision. The final decision of the arbitrationboard is carried out by the Fund management.

The fund performs criminal prosecution, including bringing action for the collection of the amount it has paid from the related persons.

The rights of the parties to apply to the judiciary are reserved.

 CHAPTER SEVEN

Duties and Powers of the Ministry,

Administrative Measures and Supervision

Duties and powers of the Ministry

ARTICLE 26 — The Ministry is tasked with and authorized in;

Licensing those who will operate in licensed warehousing, authorized classifying and other issues within the framework of this Law, suspending and canceling these licenses in cases stipulated by the legislation, determining duties and responsibility of the license owners, classifying them, supervising all of their transactions and accounts, and assets,

In case of violation of this Law, taking all kinds of administrative measures and making savings required in order for protecting the interests of the depositors, and sustaining the operations and activities in confidence and stability,

Establishing commissions and working groups needed for the implementation of this Law and the development of licensed warehousing,

Carrying out other works and transactions stipulated under this Law.

Administrative measures and transactions of the Ministry

ARTICLE 27 — The Ministry is authorized to warn the related persons according to the importance and nature of the act in order for protecting interests of depositors, sustaining licensed warehousing, classifying and other transactions and activities stipulated in this Law in confidence and stability, to give instructions, to temporarily suspend one or more of its activities, to suspend the license, to cancel the license, to terminate the current management of the enterprise by considering the nature and urgency of the work and to appoint a temporary board to serve for a maximum of one year, or to request the appointment of a trustee by applying to the competent court, to apply to the competent criminal court of peace for taking a cautionary judgment or seizing the assets, rights and receivables of the enterprise and its partners, removing, distraining the power of disposition partly or completely, depositing them, and to eliminate, and to make all other kinds of administrative measure and transactions; in cases that the licensed warehouse operator 

Does not settle deficient issues or that are contrary to this Law and the relevant regulations, especially the license conditions, within the given period in spite of warning and administrative measures of the Ministry,

Enters into a bankruptcy, takes liquidation decision or enters the liquidation process,

Suspends the licensed warehousing activity, requests its license to be suspended or canceled,

Loses the competency of operating licensed warehouse as a result of the inspections or if the matters requiring criminal responsibility under the Law are determined,

Issues a warehouse receipt over and under the amount of the product delivered or for the product not delivered to the licensed warehouse, allows the product, which is represented by this warehouse receipt, to be taken out of the warehouse without the cancellation of the warehouse receipt or makes savings such as taking out of the warehouse, selling, hypothecating the product in question without permission of the depositor and does not indicate this in stock records,

Delivers products below the amount and quality that the warehouse receipt represents to provide benefit, and shows the quality characteristics and standard of the product received different in the warehouse receipt,

Does not deliver the product despite the depositor’s request,

Consciously accepts agricultural products exposed to agricultural pesticides, dirt and similar substances to the extent that it adversely affects the health to the warehouse and mixes them with other products in the warehouse,

Acts in violation of the provisions of the Law and the relevant regulation.

In case the Ministry determines that there is a contrariety to the legislation as a result of a determination or inspection, it can implement one or more of the above measures and transactions according to the importance and nature of the action and immediately informs the relevant authorities about the situations requiring legal follow-up.

In case of warning or instruction, one or more of the activities of the enterprises that do not take the necessary measures or do not overcome the deficiencies within the given time may be stopped or the license may be suspended up to a maximum of one year. If the contrarieties and deficiencies are not eliminated at the end of this period, the license is canceled.

In cases of stopping its operations, taking decision of liquidation or failing to fulfill one or more of the license conditions or going bankruptcy of the licensed warehouse enterprise, the warehouse operator immediately notifies the depositors and delivers the products to the depositor after the collection of the normal warehousing service fee, which the depositors have to pay as per their contract. The warehousing services cannot be terminated before thirty days after the date of notification.

Operation of the warehouse in cases of suspension, cancellation of the license or the seizure of the licensed warehouse enterprise

ARTICLE 28 — In cases of the temporary suspension of one or more of the activities of the licensed warehouse enterprise or the suspension of its license, the licensed warehouse enterprise continues its operations, but cannot accept new products to store. In such cases, in order to protect the interests of the depositors, the Ministry can supervise the transactions and operations of the licensed warehouse operator or can appoint a temporary board of directors in necessary, or can apply to the court for appointment of a trustee.

In cases requiring direct seizure to the management and assets of the licensed warehouse enterprise or in case of cancellation of the license, a temporary board of directors is assigned by the licensed warehouse enterprise or a trustee is appointed by the court, and the interests of the depositors are primarily protected.

Supervision 

ARTICLE 29 — Funds, licensed warehouse enterprises, authorized classifiers and otherrelated persons licensed under this Law are subject to the inspection and supervision of the Ministry. The Ministry supervisestheir all assets and transactions, products in their warehouse, their books, records, certificates, and accounts through supervisory staff or makes them supervised by the supervisory institutions. The Ministry may appoint technical personnel to assist in supervisionsif required, and may request the relevant ministries and organizations to participate in the supervision or to assist.

Their managers and personnel are obliged not to prevent the entry of the persons assigned by the Ministry for the purpose of supervision into the enterprise and facilities, to show the money, goods and money-equivalent documents, products, negotiable documents, records and books, albeit confidential, to assist in the examination, to provide the requested information in a complete and true manner, and to show all other kinds of help and convenience. They are obliged to follow the instructions to be given the Ministry as a result of the supervision.

The Ministry determines the quality, working procedures and principles of the supervisory institutions.

Appointment of a supervisory board member

ARTICLE 30 — For the purposes of maintaining public interest, providing continuity, transparency, efficiency in supervisions and services, and ensuring rapid information flow to the Ministry in important issues, when deemed necessary by the Ministry, a member among the relevant unit personnel who are graduated from the faculties of law, economics and administrative sciences, political sciences, and engineering of the universities which have given at least four years of formal education can be appointed to the supervisory board of the licensed warehouse enterprise.

The provisions of the second and third paragraphs of Article 275 of the Turkish Commercial Code are applied for the representative of the Ministry to be kept in the supervisory board.

Cooperation between the ministries and obligation of organizations to assist 

ARTICLE 31 — The relevant ministries make necessary participation, cooperation and contribution within the framework of their duties and authorities in the solution of the problems and the performance of the duties in cases required for the implementation of this Law. Public institutions and private organizations participate in the studies and practices upon the invitation of the Ministry and provide the necessary support and assistance at first.

 CHAPTER EIGHT

Prohibitions, Legal and Criminal Responsibility

Prohibition of making discrimination of licensed warehouse operator

ARTICLE 32 — Other than the cases that the warehouse capacity is full, the goods that are intended to be delivered or stored are of a quality that may adversely affect the other products and health in the licensed warehouse or are unsuitable for storage,a licensed warehouse operator cannot discriminatepersons in the acceptance of the product for storage, and in benefiting storage services and opportunities of licensed warehouse enterprise.

Prohibited activities

ARTICLE 33 — Licensed warehouse enterprises cannot make savings such as purchase, sale, and pledge on the products belonging to the others deposited on them without permission by this Law and the depositor, and cannot take any action to change the qualifications of the products.

Legal and criminal responsibility

ARTICLE 34 — The Fund, licensed warehouse enterprises, authorized classifiers and the owners of other related persons that are licensed under this Law are liable for damages resulting from their own defects together with the Fund, licensed warehouse enterprises, authorized classifiers and the owners of other related persons that are licensed under this Law.

Managers, supervisors and personnel of the Fund, licensed warehouse enterprises and authorized classifiers, and other related persons licensed under this Law are punished as the Public officers for their offenses relating to their transactions and activities, product and warehouse receipts, money and goods, documents, reports, accounts, records and books, and other documents. The documents issued by them are accepted as official documents for the implementation of the Turkish Penal Code.

In addition, if a more severe penalty is not foreseen for the following acts and actions;

For the managers of licensed warehouse enterprise who do not keep the records and books specified in article 23 and which are obliged to be kept in any way or correctly and properly, who have a notarial certificate, or do not comply with the preserving the books and documents for their preservation period; penalties stipulated in Article 67 of the Turkish Commercial Code are applied.

For the managers and personnel, and other related persons of the licensed warehouse enterprise, who claim and collect over the fee determined in the licensed warehousing fee tariff, who act contrary to the provision of article 35, who do not comply with the content, form and storage conditions regulated in the relevant regulation of the warehouse receipt; a judicial fine from two hundred and fifty days to five hundred days is applied.

For the manager and personnel of the licensed warehouse, who act contrary to the provisions of the first paragraph of article 17, the first paragraph of article 21, the clause (a) of the first paragraph, and the last paragraph of article 27, and the article 32; prison sentence from three months to one year and judicial fine from two hundred and fifty days to two thousand and five hundred days are applied.

For whom deliberately receives defective sample or intentionally destroys the product received, or impairs the nature of representing the product, or weighs, grades, and classifies any agricultural product stored or to be stored under this Law deliberately and in untrue manner, or does not comply with the contract signed between the licensed warehouse enterprise and stock market and approved by the Ministry unless it has a legally valid excuse, and acts contrary to the provisions of the clauses (f) and (h) of the first paragraph of article 27, the first paragraph of article 28, and the second paragraph of article 29; penal servitude from six months to two years, and judicial fine from one thousand days to four thousand days are applied, according to the importance and nature of the action,.

For whom represents a license given in accordance with this Law in falsifying, imitating way or inaccurately, does modification or forgery on it, or regulates or uses the license or warehouse receipt as benefit supply for the purpose of obtaining credit or in any other way without authorization by the Law, does not fulfill the warehousing services in accordance with the Law to provide benefit for themselves, acts contrary to the provisions of the first paragraph of article 8, the clause (e) of the first paragraph of article 27, and the article 33; penal servitude from two years to five years and judicial fine from two thousand and five hundred days to twenty five thousand days, according to the importance and nature of the action.

In the event that the damages resulting from the acts committed in this article have not been compensated in any way, it is judged ex-officio to be paid by the court.

 CHAPTER NINE

Miscellaneous Provisions

Exposure

ARTICLE 35 — It is obligatory to hang the warehousing license, authorized classifying license, licensed warehouse fee tariff, premium and discount tariff, working time chart and other documents deemed appropriate by the Ministry in a place or places that can be seen easily.

The related persons are obliged to act in accordance with the documents and tariffs specified above and that has to be hung, and not to distinguish between persons in implementation of these.

Classification of agricultural products

ARTICLE 36 — The licensed warehouse operator accepts and delivers the products of which weighing is carried out, class and standard are determined in accordance with the relevant legislation, to the licensed warehouse. If there is an objection regarding the weighing, analysis, class or standard, it is moved in accordance with the values re-determined as a result of the objection.

The agricultural products of which class and standard are determined by the authorized classifiers are not subject to another obligatory control for the same purpose.

Separate storage, packaged products

ARTICLE 37 — If depositors request to store their products separately and if it is accepted, The licensed warehouse operator, as shown in the relevant regulation, stores this product separately from other products and delivers the same product. Packaged received products are also stored in a regular and easily accessible manner.

Regulations

ARTICLE 38 — The regulations stipulated in this Law and the regulations for the implementation of the Law are put into effect by being prepared by the Ministry provided that the opinion of the relevant ministries is taken.

Applicable provisions

ARTICLE 39 — In cases where there is no clarity in this Law, the relevant provisions of the Public Warehouse Law no. 2699, the Turkish Commercial Code no. 6762, and the Code of Obligations no. 818 are applied.

 CHAPTER TEN

Temporary and Final Provisions 

TEMPORARY ARTICLE 1 — The regulations stipulated in this Law are repealedwithin maximum six months after the entry into force of this Law.

TEMPORARY ARTICLE 2 — If those who are who are engaged in the storage services of agricultural products within the scope of this Law among the organizations permitted and authorized to carry out public warehousing under the Public Warehouse Law no.2699 do not comply with the provisions .

Validity

ARTICLE 40 — The third paragraph of Article 34 of this Law enters into force on 1 April 2005, and the other provisions on their publication date.

Execution

ARTICLE 41 — The provisions of this Law are executed by the Council of Ministers.