Licensed Warehousing

-Agricultural Products Licensed Storage Regulation,

-Licensed Storage Compensation Fund Regulation,

-Electronic Product Bill Regulation,

-Regulation on Licensing, Activity and Supervision of Authorized Classifiers

Notifications

-Cereals, Legumes and OilSeeds Licensed Warehouse Communiqué

-Cotton Licensed Warehouse Communiqué

-Hazelnut Licensed Warehouse Communiqué

-Olive Licensed Warehouse Communiqué

-Olive Oil Licensed Warehouse Communiqué

-Dry Apricot Licensed Warehouse Communiqué

-Pistachio Licensed Warehouse Communiqué

-Raisin Licensed Warehouse Communiqué

– Dairy Licensed Warehouse Communiqué

On the other hand, article 53 of the Chambers and Commodity Exchanges Law no. 5174, which regulates the conduct of the trade of products suitable for storage both physically and through product securities representing these products, "in the specialized exchanges operating as a joint stock company" or in "trade exchanges with sufficient technical, institutional and financial infrastructure and obtaining permission from our Ministry" and Article 53 of the Chambers and Commodity Exchanges Law 1/6/2004 hinde was published in the Official Gazette and put into effect.

In accordance with this Law, 3 Regulations have been issued for implementation to date. These include:

-Regulation on The Establishment, Activity, Operation and Audit Procedures and Principles of Product Specialized Exchanges,

-Alivre and Futures Trading Regulation in Commodity Exchanges and Product Specialized Exchanges

– Regulation on The Supervision and Supervision of Intermediaries with Brokerage Activities on The Turkish Product Specialized Exchange

With a licensed storage system;

1- Preventing price decreases caused by the supply pileup in agricultural products during harvest periods and balancing the market,

2- To provide loans and financing from banks, especially small farmers and product owners who are short of financing, through the product bills they receive in exchange for their products to licensed warehouses,

3- To trade agricultural products through products that have been determined by the standards that are accepted by all, to encourage quality production, to create a safe market,

4- Recording of agricultural products trade,

5- Achieving the agricultural reform already being implemented in our country and increasing private sector participation in the trade of agricultural products,

6- Minimizing state interventions in production and pricing, saving significantly from high expenditures in this area, moving away from interventions that disrupt free market and price formation,

7- To achieve a stable and higher income level with a system that is easy to market for agricultural products producers, well maintained and transportation costs are minimized,

8- Providing a new investment vehicle for investors that is alternative to foreign currency, gold, stocks, interest and the like,

9- Easy supply of products with price stability determined according to scientific criteria by our traders and industrialists engaged in product trade,

10- Trade of agricultural products through product notes or electronic product securities without the need to show and deliver physical goods and samples,

11- Switching to futures and options markets in agricultural products with standard determined product and licensed warehouse system,

12- Product storage, creation of new business areas in terms of banking and insurance sector,

13- To play an important role and to have a share in the trade of agricultural products in the Middle East, Balkans, Turkical Republics and Asia, where our country is located,

Aim.

HOW THE SYSTEM WORKS

Licensed Warehouse Enterprises, Product Specialized Exchange, Authorized Classifiers, Licensed Warehouse Compensation Fund

Licensed Warehouse Enterprises

Agricultural products licensed warehouse enterprises are established as joint stock companies with the permission to be given by the Ministry of Commerce taking into account economic needs and effectiveness conditions. In the establishment of the Company, the conditions of having the amount of paid capital determined in the relevant communiqué according to the storage capacity not less than one million liras and the submission of the documents shown in the regulation are sought.

The company that obtains the establishment permit is granted permission (license) to operate only if it is determined that it has the conditions stipulated by the Law. The company cannot engage in warehouse activity, accept products or issue electronic product bills without obtaining permission to operate. No names, titles, signs or the like can be used to give the impression of a licensed warehouse or licensed warehouse operator without obtaining a license.

Applicants applying for a license to operate a licensed warehouse must provide a licensed warehouse guarantee of the amount determined not less than 15% of the product rail price of the warehouse capacity. Again, licensed warehouse enterprises are obliged to obtain insurance for operating facilities and products stored within the scope of licensed storage activity as a license condition.

Agricultural products deposited in the licensed warehouse are analyzed and classified by authorized classifieds with valid licenses.

If a product is delivered and accepted to the licensed warehouse business, an electronic product bill is issued for that product. Weighing receipts issued outside the product bill at the time of delivery and similar documents with evidence quality can also be used to prove the ownership of the product.

Product bill or other documents with the nature of evidence; guarantees the return of the product to the same quantity, breed, class and quality, and this means vedia (escrow) and not sales. Electronic product notes can also be created electronically, with the provision of printed product bills.

The licensed warehouse operator delivers the product at the request of the manager without delay unless he has a legally valid excuse. Recovers and cancels the electronic product promissory note for this product at the delivery of the product.

If the product has not been retrieved from the warehouse, the licensed warehouse operator shall notify the manager in writing at least forty-five days before the minimum storage period expires. At the end of this period, some or all of the unclaimed product may be sold by the licensed warehouse operator in accordance with the nature of the product and market conditions. In this case, the licensed warehouse operator pays the remaining amount to the relevant person within seven working days, reducing the fees and costs.

Product Specialized Exchange

The product specialized exchange is established as a joint stock company with the decision of the Council of Ministers upon the proposal of the Ministry of Commerce and the Capital Market Board. In the establishment of the Company, it is necessary to have capital not less than five for those who will operate at the regional level, ten for those who will operate at the national level, and not less than fifteen million TL for those who will operate at the international level.

The company that obtains the establishment permit is granted permission (license) to operate only if it is determined that it has the conditions stipulated by the Law. The Company cannot engage in product specialized stock exchange activities without obtaining permission to operate.

It is mandatory to check and register transactions such as electronic product notes and similar securities representing the product in the provision of valuable documents issued by alivre contracts and licensed warehouses in the product specialized exchanges. Product ownership cannot be transferred to anyone else unless registration occurs on the stock exchange.

If a product specialized exchange where the relevant electronic product bill and contracts are bought and sold by quota is not operating, they are traded on trade exchanges where the adequacy of its technical, corporate and financial infrastructure is determined and obtained permission from the Ministry of Commerce.

Regarding Electronic Product Notes; registration of trades, payment of the price by transfer, protection of the rights of buyers and sellers and third parties, fulfillment of their obligations and other matters related to trading are the responsibility of the stock exchange and the losses arising from these transactions are compensated by the stock exchange.

Authorized Classifiers

They are laboratories operated by real and legal persons that obtain licenses within the scope of law no. 5300, analyze agricultural products, determine the qualities and characteristics of the product, classify them in accordance with the standards and certify these issues.

Licensed Storage Compensation Fund

It is an organization that is one of the pillars of the licensed warehouse system, which is created in order to compensate the licensed warehouse business for the losses arising from its failure to fulfill its obligations stipulated in the legislation.

License Fees

The license fees to be applied in accordance with Article 14 of the Agricultural Products Licensed Storage Law No. 5300 are determined by the ministry.

Click for License Fees..

Source: T.C. Ministry of Commerce