Turkey has updated various aspects of the state reimbursement scheme for participation in foreign fairs and exhibitions, aiming to support the image of Turkish products abroad. 50% reimbursement for fair attendance costs is now possible under the changes. The amendments also include new definitions, change the currency of reimbursements, as well as introduce limits on the amount and duration of possible reimbursements.
Communiqué No. 2017/2 Amending Communiqué No. 2006/4 (“Amendment Communiqué”) was published in Official Gazette number 30083 on 1 June 2017, entering into force on the same date. The Amendment Communiqué makes changes to the Communiqué on Branding Turkish Products Abroad, Creating the Image of Turkish Goods and Supporting TURQUALITY®.
Notable provisions of the Amendment Communique include:
– The maximum limit for reimbursement amounts will now increase annually by half of the sum of the consumer price index and domestic producer price index.
– State reimbursement is now also possible for costs related to licensing, testing, clinical research and processes, as well as related counselling, provided these are necessary to enter foreign markets or to provide advantage in some way.
– The state will now reimburse expenses for employment of ten designers or engineers for the development of Turquality branded products (previously five).
– Definitions are introduced for:
– The System where applicants can file reimbursement applications.
– Development Road Maps, outlining key criteria, qualifications and thresholds for entities which wish to receive state support. To access the reimbursement, the Ministry of the Economy must approve each applicant’s Development Road Map.
The currency of state reimbursements has changed from US Dollars to Turkish Liras.
– The Turkish Exporters Assembly (or other association exclusively representing the sector) will now be reimbursed 80% of projects, up to two million Turkish Lira per project. The cap will one million Turkish Liras per entity for projects involving multiple associations.
– Reimbursements can now only be received for between one and four years, with an association at most two projects being supported at the same entity at any given time. There was previously no limit on the number of years.
– A 1.6 million Turkish Lira cap has now been placed on the 50% reimbursements of costs to attend fairs and exhibitions within the Trademark Support Program.
– Up to 50% of costs for attending foreign fairs will now be reimbursed.
A range of transitional provisions also apply for expenses incurred before 1 June 2017, generally allowing applicants to benefit from the advantageous provisions in the revised regime.
Information first published in the MA | Gazette, a fortnightly legal update newsletter produced by Moroğlu Arseven.