IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 02 Jan 2015 | Removal date: open ended
Still in force

Public procurement preference margin

On the 6 February 2014 the Turkish government decided to enforce a local preference margin of 15% for middle and high technology products. Up to this decision, the application of this margin was at the discretion of the authority issuing the tender.
 
To this end, article 63 of the Turkish Public Procurement code (law no. 4734) was amended as follows (own translation):

  1. A 15 percent preference margin for local service suppliers and construction works can be established a the discretion of the authority issuing the tender, 
  2. It is mandatory to give a 15 percent preference margin for interested parties which offer locally produced middle and high tech products. Every January, the Ministry of Science, Industry and Technology will publish a list with the eligible products. 

 
The first list which encompasses 2139 products ( e.g. computers, mobile phones, TVs, etc.) has been published in January 2015. 
 
Furthermore, on 13 September 2014, the Turkish government specified the conditions for what constitutes a "local product" eligible for the above preference margin for the first time. The conditions are:

  1. The product has to be produced by industrial enterprises which own a registration certificate issued by the Ministry of Industry. Furthermore, the product has to be listed in the category "production content" (turkish: üretim konu) of the registration certificate.
  2. Important stages of the production process with products that have been produced or obtained entirely in Turkey and from the economical point of view necessarily last fundamental processing and workmanship being done in Turkey.
  3. The value of the local contribution has to be at least 51% of the final production cost.

AFFECTED COUNTRIES

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