To define foreign trade, it is a flow of goods and capital across national borders that takes place in two ways: import and export.
Although there is no definition of a foreign trade capital stock company in the law, they are companies that have some characteristics established for the purpose of improving foreign trade, especially exports.
A regulation has been made on the "Foreign Trade Capital Stock Company " in accordance with the clause (k) of Article 3 of the Export Regime Decision dated 22/12/1995 and numbered 95/7623. According to these regulations; The "Foreign Trade Capital Stock Company" status can be granted to joint stock companies, whose capital has been paid at least 2 million TL and whose customs declaration in the previous calendar year has realized an actual export of at least USD 100 million or equivalent value. To be in this type of company, an application must be made to the Ministry of Commerce and the application form specified in the communiqués must be filled. Companies with the title of Foreign Trade Capital Stock Company are published in the Official Gazette.
Foreign Trade Capital Stock Companies in Turkey emerge as a tool of government policy aimed at the growth of the economy by increasing foreign sales.
There are a number of advantages to establishing a Foreign Trade Capital Stock Company.
Foreign Trade Capital Stock Companies can benefit from the registration-cancellation system regulated for VAT in case non-manufacturer companies deliver on the condition of export. In addition, there are a number of facilities regarding the guarantee shown for VAT refund. If there is no report about forged documents about these companies; about the payment of income, corporate tax and VAT in the last 5 years, and in case of a positive report about the transactions that give the right to return in the last 5 taxation periods, they can receive a refund with 4% guarantee. After the confirmation of approved or special invoices, they can request a refund without the need for confirmation of customs declarations.
Foreign Trade Capital Stock Companies, Foreign Trade Companies benefit from the Short-Term Export Credit Program. This loan assistance is provided by EXIMBANK. There are special low-interest regulations for Foreign Trade Capital Stock Companies in credit assistance.
A number of conveniences have also been introduced for these companies in terms of customs legislation. While the applicants for obtaining the status of approved person are required to be a manufacturer, this requirement is not sought for Foreign Trade Capital Stock Companies. At the same time, a certain number of employment conditions are not sought for these companies. In these companies' Approved Status Certificate applications, some of the required documents normally do not need to be submitted.
Government provides assistance to organizations in order to promote and diversify export products, increase their market shares and enter new markets. Foreign Trade Capital Stock Companies primarily benefit from these aids made by publishing communiqués. 50% of the participation fee paid to the organizer for fairs organized abroad by these companies, if the fair is a National Participation or a Turkish Export Products Fair, USD 10,000; In the event that the fair is a National Participation, a Sectoral Fair with Foreign Company Participation or a Sectoral Turkish Export Products Fair, support not exceeding USD 15,000 is provided. In order to increase the competitiveness of Foreign Trade Capital Stock Companies in international markets and to comply with the regulations on environment, quality and human health, 50% of the expenses related to the agricultural products analysis reports and / or up to USD 25,000 (twenty five thousand) are supported. The state grants up to USD 250.000 annually at the rates varying between 60% and 90% of the expenses for advertising and promotion expenses to be made abroad for export. The state provides a certain amount of assistance in renting places such as offices, stores and warehouses to be opened abroad for export purposes. These supports are covered by the Support and Price Stability Fund.
Foreign Trade Capital Stock Companies are responsible for all documents issued regarding the production, supply and export of goods purchased and supplied domestically on their behalf and on their account.