Regulations

Agricultural Products Licensed Warehousing Regulation

12 April 2013  FRIDAY

Official Gazette

No: 28616

From the Ministry of Customs and Trade:

 AGRICULTURAL PRODUCTS LICENSED WAREHOUSING REGULATION

 CHAPTER ONE 

Purpose, Scope, Basis and Definitions

Purpose 

ARTICLE 1 – (1) The purpose of this Regulation is to determine the standards of the agricultural products subject to licensed warehousing and to ensure them to be stored in safe and healthy conditions and to facilitate their trade through the warehouse receipts.

Scope 

ARTICLE 2 – (1) This Regulation covers the establishment, activities, operation, supervision of the licensed warehouse enterprise, and regulation of their warehouse receipts, and the procedures and principles regarding the licensed warehousing system.

Basis

ARTICLE 3 – (1) This Regulation has been prepared on the basis of the article 38 of the Agricultural Products Licensed Warehousing Law no. 5300 dated 10/2/2005.

Definitions

ARTICLE 4 – (1) The definitions of the expressions mentioned in this Regulation are as follows;

Ministry: The Ministry of Custom and Trade,

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,

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,

Electronic Registry Agency (ERA): A joint-stock company which has a representative from the Ministry in the board of directors who is graduated from higher education institutions formal or not, and which has licensed by the Ministry in order to ensure the creation of the electronic warehouse receipts, and to monitor all rights and obligations and transactions connected to these notes by the parties,

Fund: Licensed Warehousing Compensation Fund,

Law: The Agricultural Products Licensed Warehousing Law no. 5300

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

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

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

Licensed warehouse guarantee: Cash and cashable guarantees specified in the Law, accepted by the Ministry and given to the Fund that guarantees to meet damages which may occur due to the failure to fulfill the liabilities stipulated in the Law and the secondary regulations by the licensed warehouse enterprise,

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,

Weigher: The natural persons who are assigned to weigh the product brought to the licensed warehouse or delivered from the warehouse, and to issue the weighing receipt,

Warehouse receipt: The negotiable instrument, which represents the property of the products and guarantees the pledge, regulated by the licensed warehouse enterprise,

Product: The basic and processed agricultural products, which are regulated by the Ministry's communiqués, suitable for storage and can be standardized,

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

 CHAPTER TWO

Licensed Warehouse Enterprise Establishment and Activity Permit

Requirements for granting establishment permit

ARTICLE 5 – (1) The establishment of the licensed warehouseenterprise is subject to the permission of the Ministry.

(2) In order to allow the establishment of the licensed warehouse enterprise, it is obligatory;

That the market structure of the product to be stored shall be at the quality and level required to establish a licensed warehouse, availability of economic needs and activity conditions,

To have the paid-in capital, in the amount specified with the relevant Communiqué,according to the storage capacity, not to be less than one million TL,

That all certificates of share shall be registered,

And that the founder, partner and members of the board of directors shall have the conditions specified in the third paragraph,

d) To have other requirements sought by the relevant legislation.

(3) The founder, partner and members of the board of directors of the licensed warehouse enterprise are obliged;

Not to be prohibited for reasons specified in Article 7 of the Law,

That no bankruptcy decision has been made or no concordat has been declared about them or the institutions they are unlimited liable for,

That the natural and legal person partners not to have any obstacles that might damage the reputation of the licensed warehouse enterprise in terms of financial and commercial reputation, taking into account their partnership interests.

(4) In the title of the company that applied for the establishment, 'Agricultural Products Licensed Warehousing' has to be present.

Documents required for granting establishment permit and the establishment permit

ARTICLE 6 – (1) Those who want to obtain the licensed warehouse enterprise establishment permit apply to the Ministry with a petition. The following documents are added to the petition:

Establishment application form of which content and form determined by the Ministry,

Reasoned report for that the market structure for the product to be stored is at the quality and level to require the establishment of a licensed warehouse, and that the economic need and activity conditions are appropriate,

Articles of association prepared in accordance with the requirements of the establishment specified in Article 5,

A document showing that at least one million TL of the capital has been paid,

Written statements of the founder, partner and members of the board of directors indicating that they meet the requirements of the third paragraph of Article 5,

Balance sheet, income statement and additional financial statements for the last year, which are issued and approved by the independent accountant and financial advisor of legal person partners, except for public legal entity, or by a certified public accountant or an independent supervisory institutions if deemed necessary by the Ministry,

For the foreign founder, partner and members of the board of directors, notarized translations of the documents which indicates that the conditions sought in the third paragraph of Article 5 are possessed and which have been approved by the competent authorities of the country they are in,

Other documents required by the Ministry.

(2) The documents attached to the application petition are examined by the Ministry. Establishment permit is granted to those it is understood to possess the necessary conditions as a result of the examination performed, and the establishment procedures are completed in accordance with the provisions of the Turkish Commercial Code no. 6102 dated 13/1/2011.

(3) The Ministry canedit the company’s articles of association as printed, or determine its minimum elements.

(4) The document specified in the clause (d) of the first paragraph is obliged to be submitted to the relevant directorate of trade registry at the registration stage.

Process of transition to activity

ARTICLE 7 – (1)The company that obtains the establishment permit cannot accept product, and cannot issue a warehouse receipt without getting activity permit.

(2) In case of any change in the information on the establishment application form, it is notified to the Ministry.

(3) The company which has obtained establishment permit is obliged to apply to the Ministry to get the activity permit within one year at the latest following declaration of its establishment registration in the Turkish Trade Registry Gazette. This period may be extended by the Ministry at most one year if necessary.

(4) The company's additional capital amount exceeding one million TL may be paid until the date of application for the activity permit. The relevant provisions of the Turkish Commercial Code regarding the payment of capital are reserved.

(5) The right to receive an activity permitof those who do not apply to the Ministry within the period specified in the third paragraph or who are not deemed eligible to be given activity permit as a result of his application and who lose the conditions sought in the organization ends.

(6) Those that lost the right to get activity permit are obliged to change their objectives and activities, and the commercial name in the articles of association within three months at the latest or to go into liquidation.

Requirements for granting an activity permit

ARTICLE 8 – (1) The activity of licensed warehouse enterprise is subject to the permission of the Ministry.

(2) The following conditions are required in order to grant activity permit to the company that has obtained establishment permit:

To apply within the period stipulated in Article 7,

Not to lose the requirements sought in the organization,

The warehouses to possess the requirements determined by the Ministry,

To have adequate weighing scale, tools, devices, and weigh-bridges in accordance with the Article 18,

To fulfill its obligations of contract with the stock exchange and the authorized classifier,

To establish the necessary data processing infrastructure and to ensure accessing of the relevant stock exchange, and upon request, the Ministry and the Fund to this data processing infrastructure,

To fulfill the liability for the books and records stipulated in this Regulation,

To give licensed warehouse guarantee,

To fulfill the insurance obligation specified in Article 15,

To be paid of the entire capital determined by the Ministry according to its storage capacity,

To establish an adequate infrastructure to provide regular workflow and communication with the record, information and document system, and to establish an internal control system with technical equipment,

To provide employment of administrative and auxiliary personnel and weigher and other technical personnel in necessary number and qualification suitable for the licensed warehousing activities.

Documents requested for granting activity permit

ARTICLE 9 – (1)The company that has obtained the establishment permit applies to the Ministry with a petition to obtain the activity permit. The following documents are added to the petition:

License application form of which content and form determined by the Ministry,

Certified copies of insurance policies issued for the products to be stored within the scope of the licensed warehousing activities and for the plants of the enterprise,

Contract signed with the authorized classifier and approved by the Ministry,

Contract signed with the stock exchange and approved by the Ministry,

Record showing the fulfillment of the guarantee obligation,

Certified or independent account and financial advisor report for that the entire capital determined by the Ministry according to storage capacity ispaid,

The company’s balance sheet, income statement and additional financial statements for the last year, which are issued and approved by the independent accountant and financial advisor, or by a certified public accountant or an independent supervisory institutions if deemed necessary by the Ministry

Declaration showing the name, ID number, residential address and educational status of the managers and branch managers, if any,

Personnel and organization chart showing names, titles, duties and responsibilities, and job descriptions of the personnel,

Written statement for being property owner or tenant of buildings and plants of the enterprise,

Settlement plan of the enterprise and warehouses, and if any, the branches,

Petition containing the printing of the warehouse receipts by the Ministry,

Petition showing that the licensed warehouse fee tariff determined by the board of directors of the company, and the premium and discount tariff, if stipulated by the Ministry, are approved by the Ministry,

Copy of the Turkish Trade Registry Gazette showing that the names and original signatures of those who are authorized to sign the warehouse receipts are registered and announced,

Receipt showing that the license fee determined by the Ministry is deposited to the relevant account.

(2) The documents specified in clauses (e), (l), (m), (n) and (o) of the first paragraph are given after approval of the License Application Investigation Commission report by the Ministry.

Investigation commission

ARTICLE 10 – (1) In the event that the documents submitted in accordance with Article 9 are found to be complete and sufficient, a commission is established from the Ministry and / or outside of the Ministry of technical and expert persons, not to be less than three.

(2) The Ministry may create a separate commission for each license application or may also create a single commission for the license applications to be made within the period determined by the Ministry.

(3) The Ministry may also request this examination from an institution it authorizes to perform supervision instead of from a commission it creates.

(4) License Application Investigation Commission examines;

Whether the warehouses and other facilities under license provide the technical competencies stipulated in the Law and secondary regulations,

Whether the tools, devices, weighing instruments and weigh-bridges used in the enterprise are suitable in terms of number and quality, and if there are instructions for use,

Whether the required data processing infrastructure has been created for the licensed warehousing activities, whether the access of the relevant stock exchange, and upon request, the Ministry and the Fund to this data processing infrastructure is ensured, and whether the certificates have been supplied,

Whether a sufficient infrastructure has been established to ensure regular workflow and communication with the record, information and document system, and whether the technical equipment and internal control system has been established,

Whether the required number and quality of technical, administrative and auxiliary personnel are employed,

Whether the obligations related to books and records are fulfilled in accordance with the legislation,

Other issues deemed necessary by the Ministry,and presents the results of the examinationtogether with its justifications to the Ministry by linking it with a report.

(5) If the Ministry needs or finds the report prepared by the commission inadequate, it may decide to make an additional or new investigation related to the subject.

(6) As to the examination carried out, expenses based on an expense document or, if this is not possible, to the statement of the expense holder, are paid by those applying for license during the investigation.

Activity permit

ARTICLE 11 – (1) As a result of the investigation and evaluation; those who are deemed to have the requirements stipulated in Article 8 and who submit the documents specified in Article 9 are granted a license. No license is granted if the necessary requirements are not met or if it is understood that the requested documents are not submitted, or if there is a valid reason shaking confidence and commercial reputation or preventing to grant license.

(2) A license can be issued for storing two or more kinds of products. The license document shows which products can be stored and their maximum capacity and all branches operating under the license.

(3) The license is valid for two years and cannot be transferred. This license is declared in Turkey Trade Registry Gazette.

(4) The license must be obtained from the Ministry to carry out licensed warehousing activities.No action is taken without obtaining a license,a non-licensed warehouse cannot be operated as a licensed warehouse, or any name, title, sign, and so on, which may give the impression of licensed warehouse or licensed warehouse enterprise, cannot be used without permission.

(5) In the event that a licensed warehouse becomes inadequate in terms of license requirements for any reason, this warehouse cannot be used to store products unless the reasons that make the warehouse inefficient are eliminated.

(6) In case of any change in the information and documents in the license application form, they are notified to the Ministry.

Renewal and replacement of the license

ARTICLE 12 – (1) The license must be renewed at the end of the two-year period and the validity period must be extended. If the licensed warehouse enterprise wants to increase the storage capacity or store different types of products in the warehouses, it is obligatory to change the license.

(2) The renewal and replacement of the license is subject to the procedures and principles in obtaining license.

(3) License certificate is renewed in case of changes in the information in the license certificate. In case of the renewal of the license certificate not covered by the first paragraph, it is necessary to carry out an on-site investigation.

Loss, suspension and cancellation of the license

ARTICLE 13 – (1) Licensed warehouse enterprise which has lost the license certificate applies to the Ministry together with its reasons. In this case, the Ministry issues a new license certificate to be given to the licensed warehouse enterprise. In the given certificate, the original license number and date are specified.

(2) The Ministry may decide to suspend or cancel the license according to the provisions of Article 45.

(3) Documents of the license which is not renewed at the end of its validity period, and which is suspended or canceled by stopping its all activities are returned to the Ministry within seven working days at the latest. Licenses that are not canceled within the suspension period are returned to the licensed warehouse enterprise.

(4) Decisions of the Ministry on suspension, return and cancellation of the license are declared in the Turkish Trade Registry Gazette.

 CHAPTER THREE

Contract, Insurance, Guarantee and Other Issues Related to License

Contract with the stock exchange and authorized classifiers

ARTICLE 14 – (1) Contract is drawn up with the stock exchange in order to ensure that the trade and follow-up of the warehouse receipts can be carried out in confidence. In the contract; the quotation of warehouse receipts on the stock exchange, control and follow-up of their movements, their confirmation, cancellation, providing regular information flow, inspection and control of the products in the licensed warehouses by the stock exchange all the time when necessary, or at times deemed appropriate by the Ministry not to exceed three-month periods, the issues on the information communication system between them, and the other issues to be determined by the Ministry are included. Ministry can issue the contracts as printed.

(2) A contract is drawn up with the authorized classifiers in order to carry out analyzing, classifying and certificating procedures of the products stored or to be stored. The Ministry may issuethese contracts as printed.

(3) The contract specified in this article or the amendments to be made in contracts become effective after the approval of the Ministry. In case a reason arises for the termination of the contract for any reason, this situation is notified to the Ministry by the parties within five working days at the latest and necessary measures are taken to prevent damage to the depositors. The termination of the contract becomes effective after the expiry of thirty days from the date of receipt of thegiven notification by the Ministry.

Insurance 

ARTICLE 15 – (1) For the products stored within the scope of company facilities and licensed warehousing activity;insurance is obliged to be made against theft, fire, smoke, explosion, earthquake, internal flooding, flood, strike-lockout-riot, terror, storm, snow weight, lightning, landslide, land, sea or air vehicle crash and other similar risks.

(2) Warehouse capacity is taken as basis for insuring products. The products, if deemed appropriate by the Ministry, can also be insured gradually according to the actual storage status. However, the insurance policy to be arranged in this way must cover all the products placed in the warehouse.

(3) In the insurance policy arranged for the stored product, the policy beneficiary is the depositor at the time the damage occurred. However, in cases the warehouse receipts are shown as a guarantee, the rights of the institution granting credit or advance are reserved.

(4) In case damage within the scope of the insurance occurs in the licensed warehouse, the licensed warehouse enterprise immediately informs the Ministry and the relevant 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.

(5) As long as the licensed warehouse enterprise does not have a legally valid excuse, it is obliged to submit all the 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

(6) In case a reason resulting in the termination of the insurance contracts stipulated under this Regulation 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.

(7) The licensed warehouse enterprise is obliged to act according to the rules stipulated in insurance policy, and also to take the necessary measures to ensure its personnel to refrain from any acts that would violate of invalidate these insurance provisions.

(8) In case the licensed warehousing guarantee is given as liability insurance,it is obligatory that this insurance and insurances specified in the first paragraph are carried out by the same insurance company.

Licensed warehouse guarantee

ARTICLE 16 – (1) It is obligatory to provide a licensed warehouse guarantee specified and accepted by the Ministry, not to be less than 15% of the current market value of the product of the storage capacity within the scope of the license.

(2) When determining storage capacity; the maximum amount of products that the licensed warehouse enterprise can store in normal working and storage activity are taken as a basis by paying regard to the empty places and passageways required for transporting the product to the warehouse parts, placing, piling, and removing them from the warehouse properly, and the equipment, hardware, work vehicles and machines in the warehouse to work easily.

(3) In the calculation of the amount of guarantee;the license application form given to the Ministry for the licensed warehouse capacity is assigned on what range and for which type of product, and the average price on the stock exchange in the last six months before the current month for the most traded type and class on stock exchangeof the product types indicated in this form, and if the average price of the stock market cannot be determined, the average price of the domestic and / or foreign reference stock exchange and stock exchanges determined by the Ministry is taken as the basis.

(4) If the storage process is intended to be made in adifferent manner from the product range or allocation rate specified in the license application form and if this process is in nature that may lead to a change in the amount of the guarantee, the situation is notified to the Ministry immediately.

(5) Cash money, bank guarantee letter, real estate pledge or liability insurance, which are equal to the requested amount of guarantee, are given to the Fund with an irrevocable authorization document which gives the Fund the authority to make all kinds of transactions such as purchasing, selling, issuing and transferring, in case of default in fulfilling the obligations stipulated in the legislation.

(6) Bank guarantee letter must be taken from a resident bank in Turkey accepted by the Ministry, must beimpossible to be dispensed, and must be accurate. The liability insurance must be capable of meeting the damages that will occur due to the failure of the licensed warehouse enterprise / operator to fulfill the obligations stipulated in the Law and secondary regulations, including the risk that the products stored in the licensed warehouses are not delivered to the depositor in the way stipulated in the legislation.

(7) In the event that 51% of more of the total share of the licensed warehouse enterprise is owned by the organizations having public legal personality, government business enterprises, public economic enterprises, commodity exchanges, or agriculture sales cooperatives and associations, or agricultural credit cooperatives and associations; the guarantee liability can be fulfilled by pledge on real estate up to 90% of the total guarantee. For other licensed warehouses, this rate is applied as a maximum of 75%.

(8) Licensed warehouse guarantee is issued on behalf of and for the benefit of the Fund. The protection of these guarantees, the conversion into cash as stipulated in the Law and the payment to the sufferer, conducting the legal follow-up, filing suit for the related persons, their collection, adequacy, return, and notification of these to the Ministry, and other issues and transactions related to the guarantee are fulfilled by the Fund.

(9) The Ministry is authorized to control the licensed warehouse guarantee during the modification or renewal of the license, to make completed the missing amount of guarantee, if any, to increase the rate of guarantee with a notification to be made by the licensed warehouse enterprise as a result of the request of the Fund and/or developments in the market, or to change the rate of pledge on real estate in the total rate of guarantee.

(10) The missing guarantee is completed within 30 days at the latest following the notification of the Ministry.

(11) Guarantees are not refunded unless the Ministry and the Fund have determined that there is no indemnity or obligation to be fulfilled by the licensed warehouse enterprise.

Data processing infrastructure

MADDE 17 – (1) The necessary data processing infrastructure for licensed warehousing activities is established and certificates are provided. The access of the relevant stock exchange, and upon request, the Ministry and the Fund to the established data processing infrastructure is provided.

Weighing scales and weigh-bridges

ARTICLE 18 – (1) In accordance with the Law on Measures and Adjustment no. 3516 and dated 11/1/1989, and the secondary regulations issued based on the Law no. 3516; a sufficient number and quality of weighing scales and weigh-bridges are available for weighing the product entering and leaving the licensed warehouse, and all necessary measures are taken for their weighing correctly.

(2) Weighing tools and weigh-bridges which are found to be not weighed correctly in the transactions, controls and supervisions carried out for the weighing tools and weigh-bridges cannot be used until they are fixed.

Branches

ARTICLE 19 – (1) If the storage facilities are outside the provincial borders where the business center is located;licensed warehousing activities related to these warehouses are carried out within the branch to be established.

(2) Warehouses within the branches are examined on-site when taking within the scope of license.

(3) In headquarters and branches; it is essential to be a standard in personnel processes, and report, record, and certification, or a similar management system and application in the presentation of storage services.

License fees and other fees

ARTICLE 20 – (1) The fees given for license in accordance with the provisions of this Regulation are collected in advance by the Ministry to be recorded as revenue to the general budget.

(2) License fees are determined by the approval of Minister to be effective as of 1 January each year. Warehouse capacities are taken into account when determining license fees of licensed warehouse enterprises.

(3) The Ministry may request all or some of the fees and costs for services provided in all kinds of inspection and supervisions it will make or have them made under this Regulation to be met by the relevant licensed warehouse enterprise. In this case, the related parties pay the fees and costs within ten working days at the latest.

 CHAPTER FOUR

Weighing of Products and Warehouse receipt

Weighing procedures and responsibility 

ARTICLE 21 – (1) It is obligatory to employ a sufficient number of weighers having required qualifications in the licensed warehouse enterprise. The procedures of weighing product stored or to be stored,and documenting its weight with the weighing receipt are carried out by these weighers.

(2) In order to be employed as a weigher, it is necessary to have a certificate or training certificate issued by the competent companies approved by the Ministry or authorities determined by the Ministry on the properties and use of the weighing tools, or which are making sale or installation of the weighing tool and approved by the Ministry.

(3) It is obligatory to weigh and certificate correctly and duly the products stored or to be stored without discrimination. Necessary legal actions are taken, and notifying the relevant bodies to implement criminal actions for the weighers who are found to act in contradiction with this provision.

(4) While the net weight of the packaged products is determined, it is acted in accordance with the principle determined by the Ministry, if such a principle is not determined; it is acted in accordance with the customs determined by the stock exchange.

(5) The weigher is obliged to immediately notify the licensed warehouse enterprise of any issues that may prevent the conducting and using the weighing procedures and tools in accordance with the legislation, in a regular and healthy way.

(6) The licensed warehouse enterprise is also responsible together with the weigher for that the weighing has not been conducted duly and accurately, or the weighing receipt has not been issued.

Weighing receipt

ARTICLE 22 – (1) It is obligatory to issue weighing receipt in the weighings performed for the products stored or to be stored. The weighing receipt includes the following information:

'Agricultural Products Licensed Warehousing Product Weighing Receipt' title,

Commercial title of licensed warehouse enterprise,

Name and address of depositor,

Date and serial number,

The statement which copy the document is and the phrase “non-negotiable”,

Product weighed,

The phrase indicating that the product is weighed at the entrance or exit of the warehouse,

Gross and net weight of the product,

Statement that the weighing is carried out in accordance with the relevant legislation and if any, necessary explanations for weighing procedure with the weigher’s signature,

Other information determined by the Ministry according to the type of product.

(2) The weighing receipt is arranged in at least two copies and one copy is issued to the depositor and the other is kept in the file.

Warehouse receipt

ARTICLE 23 – (1) A product not in nature of negotiable document is issued for the delivered and accepted product by the licensed warehouse enterprise. This delivery means deposit, not sale.

(2) The warehouse receipt can be issued negotiable or non-negotiable as registered or promissory, and given as a guarantee.

(3) All printed warehouse receipts have a copy, and the copies have a printed or sealed “Copy – Non-negotiable” statement clearly and apparently.

(4) No other warehouse receipt can be issued for a part or all of the products that represents the multiple warehouse receipts of the same product or with the same serial number, and the warehouse receipt issued but not cancelled.

(5) No warehouse receipt can be issued for the product which has not been analyzed and classified according to the relevant legislation, and of which process of objection for analysis and classification has not been concluded.

(6) Warehouse receipts, weighing receipts, analysis and classification documents and other documents having the nature of evidence can be used to prove the ownership of the product, and these documents guarantee the return of the product to the depositorin the same amount, type, class and quality, unless otherwise provided by the legislation.

(7) Provisions for warehouse receipt issued in the Turkish Commercial Code in situations not stipulated in the Law and this Regulation are applied for the warehouse receipt.

(8) For the electronic warehouse receipt, the provisions of the Electronic Warehouse receiptRegulation no. 28110 and dated 12/11/2011 are reserved.

Content of warehouse receipt

ARTICLE 24 – (1) Warehouse receipt contains the following information::

“Warehouse receipt” title,

Title, license number and address of licensed warehouse enterprise,

Number and location of the warehouse where the product is stored,

Date and serial number,

“Registered/Promissory” and “Negotiable/Non-negotiable” statements,

“Taken as Guarantee in Return for Credit/Advance” statement and the title of the institution receiving the guarantee if credit is used or advance is taken in return for the warehouse receipt,

Name of depositor,

Storage date as day, month and year, and the last date of storage of the product,

Explanation of that the licensed warehouse enterprise has the right to request its fees in the framework of licensed warehouse fee tariff, and that the fees are collected and paid to the licensed warehouse enterprise at the stage of purchase, sale and receiving from the warehouse of the warehouse receipt,

To be issued for the product stored in the licensed warehouse enterprise of which title is written, to be carried out of analysis and classification processes of the product by authorized classifiers according to the product standard, to be insured against the risks specified in Article 15 and to be able to be retrieved from the warehouse providing not to exceed the maximum storage period, to pay the storage fee and to submit the negotiated note originally and accurately,

Date and number of the analysis and classification certificate, and weight of the product,

Free space for clearing of accounts,

Signature of the person or persons authorized to sign the warehouse receipt,

Other information determined by the Ministry according to the type of product.

(2) The Ministry is authorized to issue the warehouse receipt as printed.

Form and printing of warehouse receipt

ARTICLE 25 – (1) The warehouse receipts are printed by the Ministry on water marked or special papers so as to have consecutive serial number and if any, logo of the licensed warehouse enterprise, and to be paid of their expenses by the licensed warehouse enterprise.

Persons authorized to sign warehouse receipts

ARTICLE 26 – (1) The names and original signatures of the person or persons authorized to sign the warehouse receipts are registered to the trade registry. Also, this is announced in the Turkish Trade Registry Gazette. If there is any change in the persons authorized with signature, the same procedure is followed.

(2) The licensed warehouse enterprise is also responsible together with those who signed the note for regulation of the warehouse receipt in accordance with the legislation.

Representation of warehouse receipts as guarantee

MADDE 27 – (1) Warehouse receipts can be shown as guarantee. The warehouse receipt  shown as guarantee in return for credit and advance is sold on the stock exchange upon the written request of the institution granting credit or advance  providing that it is notified to the depositor, in case the loan is not paid in due time.In order to do this, the written permission of the depositor must be taken before showing the warehouse receipt as guarantee according to the provision of Article 33 of the Law.

(2) After deducting the expenses related to the sale made according to the first paragraph and the storage fee accrued, the portion of the sales fee that meets the loan of depositorto the institution that has given credit and/or advance is deposited to the account of these institution, and the remaining part is deposited in the account of depositor by the stock exchange or the institution authorized to provide clearing services within seven working days.

Loss, pledge and cancellation of warehouse receipts

ARTICLE 28 – (1) In case of loss or damage of the warehouse receipt, the owner of the warehouse receipt applies to the court for the determination of the property within the framework of the provisions for the loss of warehouse receipt of the Turkish Commercial Code. A new warehouse receipt is issued by the licensed warehouse enterprise based on the court decision.

(2) The pledge on products is performed by means of pledge on the warehouse receipt representing these products, upon the request of the competent authorities.

(3) The warehouse receipt representing the product retrieved from the warehouse is cancelled by the licensed warehouse enterprise. In case of partial deliveries, a new warehouse receipt is issued for the part that is not retrieved by cancelling the existing warehouse receipt.

(4) The depositor may request the issued warehouse receipt to be divided into parts provided that they meet their expenses and comply with the legislation. In this case, the existing warehouse receipt is cancelled by the licensed warehouse enterprise, and separate warehouse receipt is issued for each part.

(5) The cancelled warehouse receipts are kept during the period stipulated in the legislation by way of cancellation stamp on its originals.

 CHAPTER FIVE

Rights and Obligations

Rights and obligations of the licensed warehouse enterprise

ARTICLE 29 – (1) The rights of the licensed warehouse enterprise are:

To request a fee within the framework of fee tariffs approved by the Ministry,

To use the right of imprisonment on the stored products if the fee has not been paid,

To refuse the storage of products in the cases specified in the Law and its secondary regulations,

To use other rights stipulated in the Law and regulations.

(2) The obligations of the licensed warehouse enterprise are:

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

To act carefully in storage services and duties, and not to distinguish between persons,

To take attention and care in the protection of the stored products and to take all kinds of measures related to these issues,

To issue warehouse receipt and other documents in return for the delivered and stored product unless there is a contrary provision in the Law and its secondary regulations,

To deliver the product without delay and to cancel the warehouse receipt upon the request of depositor,

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

To comply with the fee tariffs and not to distinguish between depositors,

To keep records and books stipulated in the Law and this Regulation,

To provide information, documents and reports to be requested directly by the Ministry or during the supervision, to perform other duties given by the Ministry under the provisions of the Law and this Regulation, and to fulfill the instructions,

To follow the developments in the market and to control the adequacy of the guarantee amount, to inform the Ministry immediately if the guarantee amount is required to be increased,

To fulfill the notification obligations in the Law and its secondary regulations in due time,

To make inventory control regularly to compare the amount of product, and the warehouse receipts issued to represent these products, and the other books and records, to investigate its reasons in case of inconsistency, and to inform the Ministry in important cases,

To comply with other provisions stipulated in the Law and its secondary regulations.

Obligation of delivery and right of imprisonment

ARTICLE 30 – (1) The licensed warehouse enterprise immediately delivers the product upon the request of the depositor, unless there is a legally valid excuse. However, the right of imprisonment of the licensed warehouse enterprise on the product in its warehouse in return for the receivables arising from the services it carried out including receiving, storing these products, processes before and after storage, and delivery is reserved.

(2) The licensed warehouse enterprise delivers the product by performing all the possible controls related to the warehouse receipt, and the depositor or the authorized representative of the depositor that submits the warehouse receipt including id card and signature, through either its or the stock exchange’s records, or through the data base which is established and operated by the Electronic Registry Agency.

(3) The products are delivered from the licensed warehouses where they are stored. However, upon the request of the depositor, the licensed warehouse enterprise may provide transportation services to provide the delivery of the product at the desired location in return for the fee, with its own vehicles or through the companies which it is contracted with.

Wastage

ARTICLE 31– (1) It is essential to return the productaccepted to be stored in the same quantity and quality. However,according to quality, variety, type, storage period and conditions, and climate or regional or some other factors, there may be an intrinsically wastage at varying rates in the product.

(2) Wastage rates are shown in the wastage tariff issued by the approval of the Ministry by the licensed warehouse enterprise prior to the storage period with the opinion of the chamber of commerce and/or commodity exchange.

(3) In return for wastage arising in the products stored within the limits specified in the wastage tariff, the licensed warehouse enterprise can;

Deliver the product accepted to the warehouse in the same amount in return for the fee calculated based on the average price on the stock exchange at the date of delivery according to the quality of the product,

Return the product accepted to the warehouse by deducting the wastage rate determined in the wastage tariff.

(4) When delivering the stored product without being mixed with other products, the loss that may occur in the amount of this delivered product must not exceed the limits specified in the wastage tariff.

(5) For issues not regulated in this article regarding the wastage tariff, the provisions regarding the licensed warehouse fee tariff are applied.

Compensation for damage

ARTICLE 32 – (1) If the fee of the product damaged, lost, lost quality, or of which wastage amount exceeds the limits specified in the wastage tariff cannot be paid within the scope of insurance, upon the request of the depositor, the licensed warehouse enterprise supplies and delivers the product in the same quality and quantity within seven working days at the latest as of the application date, or it pays the price occurred on the stock exchange at the date of application, but if the price has not occurred at this date, the amount over 5% of the fee to be calculated based on the average of the prices on the stock exchange for the last five trading days. In this case, the warehouse receipt related to the product is cancelled and the product is removed from the licensed warehouse.

(2) For the depositor losses that cannot be compensated according to this article, the provisions of the Regulation on Licensed Warehousing Compensation Fund published in the Official Gazette no. 26030, dated 21/12/2005 are applied.

Maximum storage time of the product and sale of unreturned products

ARTICLE 33 – (1) Maximum storage period of the product is determined by the Ministry according to the type of product, not to exceed 24 months. The issue that the product must be retrieved until the last storage date, otherwise the warehouse receipts may be sold by the licensed warehouse enterprise, is notified to the depositor or its authorized representative by the licensed warehouse enterprise forty-five days prior to the last storage date.

(2) The products that are not retrieved until the last storage date can be sold on the stock exchange by the licensed warehouse enterprise. In this case, the storage fee and other expenses are deducted from the sales price and the remaining amount is paid to the related person within seven working days. According to this paragraph, the warehouse receipts issued for the products sold on the stock exchange is canceled immediately and notified to the depositor and stock exchangeby the licensed warehouse enterprise.

Prohibition of discrimination

ARTICLE 34 – (1) In the process of acceptance for storage or storage of the product, it is not possible to make discrimination between persons in benefiting from storage services and opportunities of the licensed warehouse enterprise, and the application of fee tariffs.

Prohibited activities

ARTICLE 35 – (1) Licensed warehouse enterprise cannot make any savings on the products belonging to others and deposited to it such as purchasing, selling, pledging in any way, and cannot make any saving to change the quality of the products, unless permitted by the legislation and the depositor.

Working hours

ARTICLE 36 – (1) The licensed warehouse enterprise must operate not to be less than eight hours on working days unless there is a legally valid excuse. Provided that it is in compliance with the relevant legislation, it may also operate outside these days.

Identity card

ARTICLE 37 – (1) Licensed warehouse enterprise personnel are given an identity card with photo stating their names and duties.During working hours, the identity cards given to the personnel must be clearly visible on the personnel.

Exposure 

ARTICLE 38 – (1) License, licensed warehouse fee, premium and discount and wastage tariffs, list of stock exchange, insurance company and authorized classifiers which are contracted with, working hours schedule, and other issues deemed necessary by the legislation or the Ministry are exposed on a place of the licensed warehouse enterprise where they can be seen clearly, unless the license is suspended or canceled.

Tariffs

ARTICLE 39 – (1) The licensed warehouse fee tariff is determined by the board of directors of the enterprise and submitted to the approval of the Ministry. Fee tariffs approved by the Ministry and the changes in tariffs are published in the Turkish Trade Registry Gazette, and enter into force on the date of publication. New changes cannot be requested in the licensed warehouse fee tariff, unless six months have passed from its effective date. The new tariff applies to products stored after the tariff has entered into force.

(2) The premium and discount tariffs are determined by the board of directors of the company and submitted to the approval of the Ministry by taking the opinion of the stock exchange. This tariff and changes in the tariff only become effective after approval of the Ministry.

(3) Licensed warehouse enterprise may request fees under the licensed warehouse fee tariff. For the stored product, the fee tariff in effect at the date the product is stored is applied.

(4) In the licensed warehouse fee tariff, which services are included in the scope of the storage service and their fees are clearly specified.

(5) When issuing the tariffs, it is paid attention to the fees not to be very high, reasonless and unjustified, and not to be in discriminatory nature.

(6) Storage fees accrued until the day the warehouse receipt is sold or transferred are set off from the sale price and deposited into account of the relevant licensed warehouse enterprise within the following five working days by the authorized institution providing exchange or clearing services within the scope of the licensed warehouse fee tariff.

(7) During the delivery of the product from the licensed warehouse, uncollected storage fees for the product are also collected before the product is delivered.

(8) The Ministry may also decide on the application of the procedure specified in the sixth paragraph in the collection of other fees determined by the legislation.

 CHAPTER SIX

Books and Documents

Books and records and their preservation

ARTICLE 40 – (1) The warehouse receipt book is kept by the licensed warehouse enterprise. The date and number of warehouse receipts issued and canceled, and other issues deemed appropriate by the Ministry are recorded in this book.

(2) The provisions related to the legal books that the licensed warehouse enterprise has to keep in accordance with other legislation are reserved.

(3) Other books that may be required other than those specified in the first and second paragraphs may be kept by the licensed warehouse enterprise. However, it is obligatory to use other books deemed required to be kept by the Ministry.

(4) It is obligatory to keep records the date of receiving and delivering of the products entering and leaving the licensed warehouse, their net weight and class, the place of storage and the number of warehouse, their depositor, and fees received, and other issues deemed appropriate by the Ministry.

(5) Books, insurance policies, canceled warehouse receipts, storage records, including those kept electronically, and all other records and documents are preserved for ten years by the licensed warehouse enterprise. In addition, necessary measures are taken for the protection and back-up of these records and documents.

Format and procedure of keeping records and books and the approval

ARTICLE 41 – (1) The books specified in this Regulation are bound, and the pages are numbered consecutively. These books can also be kept electronically. In this case, their output is taken at the end of the month using certified movablepages. Book outputs are preserved by bounding or filing by the end of the year.

(2) It is obligatory to keep the books and records in Turkish, completely and accurately, and to be written by ink or electronic devices. In the case of errors in books and records, the corrections can only be made by drawing the error in a way to read it and by writing it to the top or side.

(3) A record passed to books cannot be made unreadable by scratching, drawing or deleting. In the books, the lines pertained to write properly between the records cannot be left blank and cannot be skipped without drawing. The book pages cannot be broken off in the bound books. In the certified movable pages, the order of these pages cannot be broken and they cannot be torn.

(4) Before the warehouse receipt is started to be used by the notary, and the other books specified in the third paragraph of Article by the provincial directorate of commerce of the Ministry in the province where the business center is located, they are approved provided that the page numbers are given, and how many pages they contain is determined.

Reports and documents requested by the Ministry

ARTICLE 42 – (1) All kinds of reports and documents requested by the Ministry regarding the licensed warehousing activities are submitted to the Ministry by the licensed warehouse enterprise.

(2) The licensed warehouse enterprise sends the annual activity report and the financial statements approved by independent supervisors or certified public accountants of its enterprise to the Ministry by the end of March of each year.

 CHAPTER SEVEN

Supervision, Administrative Sanctions and Responsibility

Duties and powers of the Ministry

ARTICLE 43 – (1) The Ministry is entrusted with and authorized;

To grant license for those who will be engaged in licensed warehousing activities under the provisions of the Law and this Regulation, to suspend and to cancel these licenses, to determine duties and responsibilities of the license owners, to classify them, to supervise or make supervised their all savings and accounts, and assets,

In case of violation of the Law and this Regulation, to take the necessary measures, to give instructions and to make savings in order to protect the interests of the depositors and to ensure that the transactions and activities are maintained in confidence and stability under the provisions of the Law and this Regulation,

To establish commissions and working groups required for the implementation of the Law and this Regulation and the development of licensed warehousing,

To invite the relevant ministries, public or private organizations to participate in, cooperate and contribute to the works and applications within the scope of Article 31 of the Law,

To fulfill the other works and transactions stipulated by the Law and this Regulation,

Ministry supervision

ARTICLE 44 – (1) Licensed warehouse enterprises are subject to the inspection and supervision of the Ministry. The Ministry is authorized to supervise or make supervised the transactions, books, records, documents and accounts of licensed warehouse enterprises. The Ministry may also appoint technical personnel to assist in supervisions, and request the relevant ministries or organizations to participate or to assist in the supervision according to the need.

(2) The managers and personnel of licensed warehouse enterprises are obliged not to prevent the entry of the supervisors to the enterprise and facilities, and to show the money, good or money-equivalent documents, products, negotiable document, records and books even if in secret to the supervisors, and to assist in supervision, to give the requested information completely and accurately, and to make all other kinds of help and convenience.

Suspension and cancellation of the license and other administrative measures

ARTICLE 45 – (1) The following measures can be taken by the Ministry according to the importance and the nature of the act in order to protect the interests of the depositors and to ensure the continuity of the licensed warehousing activities in confidence and stability:

Warning: Notification of eliminating the issues to require warning to the licensed warehouse enterprise within the given period as written by the ministry. Acts and situations requiring warning are as follows:

To lose or fail to fulfill one or more of the license conditionsspecified in Article 8,

To act contrary to the provisions which are not within the scope of suspension or cancellation specified in the Law and its secondary regulations, and not to fulfill the missing issues?

Not to deliver the product despite the request of the depositor,

Not to follow the instruction of the Ministry.

Suspension of license: Being stopped of one or more, or all of the licensed warehouse enterprise activities for a maximum period of one year.Acts and situations requiring suspension of license are as follows:

To stop the licensed warehousing activity,

To request the suspension of the license,

To lose the competency of licensed warehouse enterprise,

To determine matters requiring criminal responsibility,

Not to eliminate violations or deficiencies despite the warning of the Ministry,

To consciously accept agricultural products exposed to agricultural pesticides, dirt and similar substances to the extent that it adversely affects the health to the warehouse and to mix them with other products in the warehouse

To deliver product under quantity and quality representing by the warehouse receipt to provide a benefit and/or to show the quality specifications and standard of the product delivered different in the warehouse receipt,

To deliberately conduct misleading and improper transactions in weighing, storage, delivery and other storage services,

To issue warehouse receipt for the product not delivered to the licensed warehouse, or above or below the quantity of product delivered,

To allow the product representing by this note to be released from the warehouse without canceling the warehouse receipt,

To make savings on the products such as purchasing selling and pledging in contradiction with the legislation and/or to make any transaction to change the qualities of products

Not to keep the stock records in due form,

To violate the provisions specified in Article 48 related to the activities other than storage service and to be partner,

To take a decision of liquidation or to enter into a liquidation process or to be decided about bankruptcy.

Cancellation of the license: Cancellation of the license by the Ministry. Acts and situations requiring the cancellation of the license are as follows;

To request the cancellation of the license.

Failure to resolve violations or deficiencies in the suspension period.

(2) The Ministry is authorized to terminate the existing management of enterprise, and assign a temporary board of directors to perform a duty up to one year at the latest instead, or to request the appointment of a trustee by applying to the competent court,or 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, or to liquidate; as a result of a determination or supervision conducted, taking into account the nature and urgency of the business, as well as the measures specified in the first paragraph.

(3) The implementation of the measures stipulated in the first and second paragraphs of this Article does not constitute an obstacle to the application of other sanctions stipulated in the Law. In addition, if there are situations requiring legal follow-up during the implementation of these measures, the relevant authorities are notified immediately.

(4) Licensed warehouse enterprise of which activities are stopped and license is suspended or cancelled cannot accept products for storage.

(5) In case of suspension or cancellation of the license, the licensed warehouse enterprise immediately notifies the depositors by sending a warning, after collecting the storage fee required to be paid by the depositors; it delivers the products to the depositor. Storage services cannot be terminated before thirty days from the date of the notification in question.

Legal and criminal responsibility of the licensed warehouse enterprise and its employees

ARTICLE 46 – (1) The owner, manager and personnel of the licensed warehouse enterprise that do not comply with the provisions of the Law and this Regulation or fulfill its obligations are responsible for the damages caused by their own defects, together with the licensed warehouse enterprise.

(2) The owner, manager and personnel of the licensed warehouse enterprise are considered as a public official in terms of criminal responsibility due to the offenses they commit on transactions and activities, and money and goods, product and warehouse receipts, documents, reports, accounts, records and books, and other documents of the enterprise. The documents issued by the licensed warehouse enterprise are accepted as an official document in terms of the implementation of the Turkish Penal Code no. 5237.

(3) The owners, managers and personnel of the licensed warehouse enterprise have criminal responsibility due to its acts and actions specified in Article 34 of the Law and the penalties stipulated in the same article are applied on them.

 CHAPTER EIGHT

Miscellaneous and Final Provisions

Warehouse receipt usage and product delivery in futures markets

ARTICLE 47 – (1) If there is a condition of product delivery in the contracts traded on futures and options exchange,the licensed warehouse enterprise may undertake the duties of fulfilling the obligation of product delivery in these contracts through the warehouse receipt, and being a distribution and delivery point of the licensed warehouse within the framework of the contract it draws up in these exchanges.

Activities other that storage service and partnership

ARTICLE 48 – (1) On the condition to comply with the relevant legislation, to be shown in the articles of association of the company and to obtain permission from the Ministry; the licensed warehouse enterprise may engage in agricultural activities, buy and sell products subject to licensed warehousing within specified limits, or make trade, warehousing, transportation, and shipment, and insurance related to or based on the basic and processed agricultural products in suitable conditions for storage, establish, open, lease and operate industrial facilities, factory, manufacturing plants, warehouse, sales outlet and branches in Turkey and abroad, operate in processing, drying, sorting and other similar subjects, and be partner to stock exchange with the companies engaged in these subjects.

(2) Provided that the equity in the balance sheet does not fall below the current price of the product corresponding to its storage capacity and the permission of the Ministry is obtained; the licensed warehouse enterprise may invest capital in kind or in cash in the companies it established or took part in, or participate in the capital increases of these companies, purchase their share certificates and capital shares or redeemed shares or use them in its own capital increases as in kind capital .

(3) The Company's articles of association, shareholders and shareholding changes are subject to the Ministry's permission.

(4) In the transfer of shares, the natural and legal persons that will take over the shares must meet the requirements specified in the third paragraph of Article 5.

Notification

ARTICLE 49 – (1) In notifications to be made by the licensed warehouse enterprise according to the Law and its secondary regulations, unless stated otherwise, the provision of the Notification Law no. 7201 are used. The stock records are also used in the determination of the final depositor and address.

Repealed regulations

ARTICLE 50 – (1) By this Regulation;

Grains, Legumes and Oil Seeds Licensed Warehouse Regulation published in the Official Gazette dated 8/10/2005 and numbered 25960,

Cotton Licensed Warehouse Regulation published in the Official Gazette dated 8/10/2005 and numbered 25960,

Hazelnut Licensed Warehouse Regulation published in the Official Gazette dated 2/8/2006 and numbered 26247,

Olive Licensed Warehouse Regulation published in the Official Gazette dated 4/12/2010 and numbered 27775,

Olive Oil Licensed Warehouse Regulation published in the Official Gazette dated 4/12/2010 and numbered 27775,

Are repealed.

Transitional provisions

TEMPORARY ARTICLE 1 – (1) Until the commodity exchange comes into action, trade exchanges with sufficient technical, institutional and financial background can be authorized to buy and sold the warehouse receipts by the Ministry according to Article 53 of the Law no.5174. The regulations stipulated in this Regulation related to the commodity exchange are applied for the authorized trade exchanges.

(2) The adequacy of the trade exchange, which applies to the Ministry for authorization, is examined by a commission composed of at least two members formed by technical and / or expert persons by the Ministry. The provisions related to the commission specified in Article 10 are applied to the issues relating to the work of the commission.

(3) No fee other than registration fee to be collected according to the Regulation on Substances Subject to Commodity Exchanges and Registration of Purchase or Sale of These Substances published the Official Gazette dated 8/1/2005 and numbered 25694 can be collected for the transaction of warehouse receipt by the authorized trade exchanges.

(4) The provisions of Article 44 on the supervision are also applied for the authorized trade exchanges.

(5) In case the licensed warehouse business contracts with more than one authorized trade exchange, in the transactions to be made regarding the licensed warehouse guarantee, insurance, premium and discount, and wastages, the average of the average prices formed on the stock exchanges for the relevant product is taken as the basis.

(6) The authorized trade exchange is responsible for the registration of the purchase and sale of warehouse receipts, payment of its transfer and fee, protection of the rights of the buyer, seller and third parties, fulfillment of the obligations and other issues related to the purchase and sale, and damages arising from these transactions and clearing transactions are compensated by this stock exchange.

(7) The authorized trade exchanges may make administrative regulations on the purchase and sale of warehouse receipts, provided that they do not violate the Law and its secondary regulations.

(8) After granting activity permit to the first licensed warehouse enterprise and authorization of the trade exchange, the members to be selected / appointed to the board of directors of the Fund in order to represent these institutions are determined to serve in the boards of directors of the Fund to be formed following the expiration of the membership period of the existing board of directors of the Fund.

Validity

ARTICLE 51 – (1) This Regulation enters into force on the date of publication.

Execution

ARTICLE 52 – (1) The provisions of this Regulation are executed by the Minister of Customs and Trade.