Turkey-Selling and buying

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Published: 06 Oct 2008 17:49:22 PST

Distributing a product

Distribution network

Modern distribution has seen sustained growth since 1990, especially in hard discount. For all that, its level of development still remains limited if you compare with its market share in the European Union countries. On a foodstuff distribution market estimated at 72.3 billion USD, the share of modern structures was only 33% in 2005.

The still relatively low importance of mass marketing had not needed, until now, the setting up of specific legislation on the development of hypermarkets. The Turkish government submitted in 2005 to the Great National Assembly a bill still under discussion making it necessary to have an authorization to open a hypermarket. Another aspect of the law (which risks being challenged) will prohibit the opening of hypermarkets on Sundays and public holidays.

Reaching the consumers

The distribution sector is characterized by its high fragmentation and its low diversification. At the present time, a profound process of change is taking place, with the appearance, especially in Istanbul, of big distributors and large shopping malls, and the development of new structures integrated on a national scale.
In spite of these changes, the distribution system remains very complex, with many intermediaries. Retail sales of staple goods (food, personal hygiene, cleaning) remain concentrated essentially in about 170 000 small family structures. The surface areas of more than 100 m2 are only responsible for 20% of total sales.
The great importance of small retail establishments can be explained by the sheer size of the country and the difficult access to certain areas, a limited number of vehicles on the road, and the application of a system of credit-confidence with the local shopkeeper.

Selling to the firms

The sale of foreign products in Turkey is generally undertaken by the intermediary of agents and importers. Articles 116 to 134 of the Code of Trade (Law no. 6.762) regulate the contraction of commission agents.
Usually, commercial margins for consumer goods are below the EU average. Despite the privatisation process undertaken by the government, numerous companies remain State-owned and directly depend on Ankara for their purchase decisions. Public purchases are also decided in the Capital. To negotiate with the Turkish administration, it is necessary to have a representative in Ankara having relevant contacts at his disposal. Concerning private trade, more concentrated on Istanbul, an agent with good relations is necessary.

Numerous professional exhibitions are organised in Turkey. In order to obtain the list : TUYAP

Market access procedures

Commercial policy

Since January 1990, all imports have been free with exceptions for motives of protection of law and order, health or national security. Import administrative formalities have been considerable simplified since January 1 1990. The Common Commercial Policy has established quotas on the importing of textile products from third countries (Multifiber Agreements).

The Ministry of Industry and Commerce must give its agreement for the importing of all electric and automobile products.
The importing of pharmaceutical products and some cosmetic products is subject to the register of the Ministry of Health . In addition, the importing of some foodstuffs must be accompanied by a certificate of analysis. Presenting a phytosanitary certificate is obligatory for the importing of live animals and products from the animal or vegetable kingdom.
Importers of alcohol must obtain a certificate of import compliance issued by the TAPDK .

The importing of precious metal and stones is carried out only by banks with the authorization of the Central Bank ( Merkez Bankasi , decree No. 93/4143, March 21,1993).

Import procedures and custom duties

Turkey is a member of the WTO, of the Black Sea Economic Cooperation (BSEC), of the Economic Cooper ation Organization (ECO) and of the Southern Europe Cooperative Initiative (SECI), which encourages trade with all its member countries thanks to preferential tariffs.

Import taxes (excluding consumer taxes)

Agricultural products, whatever their origin, remain subject to a surcharge destined for the Housing Fund, but this has been abolished for imported industrial goods.

Identifying a supplier

Business directories: Turkey Business Trade Turkey
Domestic Trade Agencies and their representations abroad: TOBB - The Union of Chambers & Commodity Exchanges of Turkey

Organizing goods transport

By sea: Turkey has 8,333 km of coasts on the Black Sea, Aegean and the Mediterranean as well as the Marmara Sea. Since the country does not have a maritime tradition, Turkey does not have any seaports with sufficient infrastructures.
The principal ports of the country are Istanbul, Izmir and Mersin. Turkey stands at the 17th world rank concerning commercial fleet with 150 trade ports and a transport capacity of 120 million tons of freight per year. In 1998, 11,350 millions tons of freight traffic passed through the port of Istanbul.
The ports of this country are exploited by the State and managed by the state companies called T.D.I (Türkiye Denizcilik Isletmeleri) and T.C.D.D (Tûrkiye Cumhuriyeti Devlet Demir Yollari).
By air
By road: The Turkish road network extends over 60,000 km of roads and highways, of which more than 80% are asphalted and 1,530 km are national highways. According to the estimates made by the Ministry of transport of Turkey, 76% of goods transport is carried out by roads. In recent years, the government launched massive investment programmes aimed at improving the road network. The creation of several trunk roads is in operation: Ankara-Pozanti, Pozanti-Tarsus, Gaziantep-Sanliurfa and Bursa-Izmir, with the help of the World Bank.
The principal highway of the country links Ankara to Istanbul, it then extends up to Edirne, on the Greek-turc frontier. Nearly 90% of the goods traffic and 95% of passenger traffic takes place on the roads. Since 1993, Turkey has been applying the CMR convention.
By rail: Turkey's railway network extends over 10,508 km, of which 8,607 km are the principal railway lines and 1,901 km are auxiliary railway lines. Only, 2,065 km of railway lines are electrified, which represents 19.6% of the total railway network. The principal railway lines are Ankara-Istanbul, Istanbul-Kapikule (Greece) and Divrigi-Iskenderun.
The D.H.L (General management for air, sea and rail infrastructures) has been attached by the Ministry of Transport. This General D.H.L management looks after all investments. Another General management called T.C.D.D (General Management for the Turkish railway Administration), is a public undertaking and is responsible for the exploitation of the country's railway infrastructures.
The main investments are meant for the construction of one railway line between Georgia and Turkey. There were projects of electrification and construction of a metropolitan railway in Istanbul for the year 2002.
Useful resources: Akport (Tekirdag)