PSI · TRADE IN SERVICES AGREEMENT (TISA) TURKEY . SECOND REVISED OFFER . 1. This document contains...

TRADE IN SERVICES AGREEMENT (TISA)

TURKEY

SECOND REVISED OFFER

1. This document contains the second revised offer of Turkey in TISA negotiations. Included in this offer are the Schedule of Specific Commitments and the

List of MFN Exemptions. The offer is conditional on securing improved commitments from TISA Parties in areas of interest to Turkey, as well as attaining

a meaningful and balanced outcome in the overall negotiations, including in the area of new and enhanced disciplines.

2. Turkey reserves the right to modify or withdraw this conditional offer, in whole or in part, at any time prior to the conclusion of negotiations. Turkey

further reserves the right to make technical changes to the Schedule to correct errors, omissions or inaccuracies.

EXPLANATORY NOTES

1. Legal citations in Part I-Section B and Part II of this Schedule identify, for transparency purposes, existing measures inconsistent with the obligations on:

- National Treatment [NT] – (Article I-4 of the Core Text);

- Local Presence [LP] - (Article X.1 of the Annex on Localisation);

- Local Management and Board of Directors [LMBD] - (Article X.2 of the Annex on Localisation);

- Local Content and Other Performance Requirements [PR] - (Article X.3 of the Annex on Localisation);

- Senior Management and Board of Directors [SMBD] - (Article X.13of the Annex on Financial Services)

that apply to the entirety of the sector referred to in the entry, and are not limited to the scope of corresponding MA commitments. The measures stipulated

therein are not exhaustive; they cover the measure as amended, continued, or renewed as of the date of entry into force of this Agreement; and include any

subordinate measure adopted or maintained under the authority of and consistent with the measure.

For greater certainty, measures inconsistent with the obligations on:

- Movement of Information - (Article 2 of the Annex on Electronic Commerce);

- Location of Computing Facilities - (Article 8 of the Annex on Electronic Commerce);

- Transfer of Information - (Article 10 of the Annex on Financial Services); and/or

- Location of Computing Facilities - (Article 10bis of the Annex on Financial Services)

are inscribed against National Treatment obligation of the Core Text.

2. In identifying individual sectors and sub-sectors, where specified, CPC means the Central Product Classification as set out in Statistical Office of the

United Nations, Statistical Papers, Series M, No. 77, CPC Prov, 1991. In addition, a CPC code accompanied with double asterisks “**” indicate that "part

of" the sector is covered.

3. Turkey retains the right to exercise its powers and to regulate and introduce new regulations in order to meet public policy objectives, which include but

are not limited to the policy objectives regarding security, public health, environment, personal data protection, consumer protection, prevention of anti-

competitive practices, and sustainable development.

In this respect, this Schedule does not include measures relating to qualification requirements and procedures, technical standards and licensing

requirements and procedures when they do not constitute a market access or a national treatment limitation within the meaning of Articles I-3 and I-4. Those

measures (e.g. need to obtain a license, universal service obligations, need to obtain recognition of qualifications in regulated sectors, and need to pass

specific examinations, including language examinations, and non-discriminatory requirements that certain activities may not be carried out in nature

protection zones, archaeological sites, or areas of particular historic, cultural and artistic value), even if not listed, apply in any case to services and service

suppliers of TISA Parties.

4. Nothing in this Schedule shall be construed to prejudice the enforcement of any measure under the foreign trade regime and related customs procedures of

Turkey with regard to goods, in compliance with international agreements Turkey is a party to. In this respect, with regard to service sectors, sub-sectors or

activities where importation and/or exportation of goods might be an integral part of the supply of services, such as distribution services, maintenance and

repair services, technical testing and analysis services, any relevant foreign trade and/or customs measure shall continue to apply, even if not listed, to

services and services suppliers of TiSA Parties.

5. The rights and obligations arising from this Agreement, including the schedule of commitments, shall have no self-executing effect and thus confer no

rights directly on individual natural or juridical persons.

TURKEY - SCHEDULE OF SPECIFIC COMMITMENTS

Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons

PART I: HORIZONTAL COMMITMENTS - SECTION A

Sector or Sub-sector Mode Obligations Concerned Conditions, Limitations and Reservations

All sectors: Social services All

NT (Article I-4)

LP (Art. X.1)

LMBD (Art. X.2)

PR (Art. X.3)

SMBD (Article X.13)

Turkey reserves the right to adopt or maintain any measure affecting the provision of public

law enforcement and correctional services and, to the extent they are social services

established or maintained for a public purpose, the provision of following services: income

security or insurance, social security or insurance, social welfare, public education, public

training, public utilities, public transport, public housing, health, child care, ambulance

services and firefighting.

All sectors: Disadvantaged

groups 3,4

NT (Article I-4)

LP (Art. X.1)

LMBD (Art. X.2)

PR (Art. X.3)

SMBD (Article X.13)

Turkey reserves the right to adopt or maintain any measure that accords rights or preferences

to socially or economically disadvantaged groups, such as disabled persons and persons who

have rendered distinguished services to the state.

All sectors: Commercial

presence 3

NT (Art. I-4)

LMBD (Art X.2)

Turkey reserves the right to adopt or maintain any measure affecting the constitution of

foundations, trusts, associations, or any other non-profit organization in its territory by

foreign natural or juridical persons.

All sectors: Real estate

acquisition 1, 3, 4 NT (Art. I-4)

Turkey reserves the right to adopt or maintain any measure relating to the conditions of

acquisition of land and real estate by foreign natural persons; juridical persons which are

organized under the laws of a foreign government; or foreign invested companies in its

territory, where the acquisition of real estate is for purposes unrelated to the conduct of

business activities listed in the articles of association of their company.

All sectors: Subsidies

All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art X.2)

SMBD (Art. X.13)

With regard to service supply through modes 1, 2 and 4, Turkey reserves the right to adopt or

maintain any measure relating to subsidies, or any conditions attached to the receipt or

continued receipt of such subsidies, whether or not such subsidies are offered exclusively to

domestic services, service consumers or service suppliers.

With regard to service supply through mode 3, Turkey reserves the right to adopt or maintain

any measure which is not inconsistent with its commitments under the GATS. In this regard,

Turkey may restrict the eligibility for subsidies to Turkish nationals or juridical persons

established within a particular geographical subdivision of its territory.

Privatization 3

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art X.2)

SMBD (Art. X.13)

Turkey reserves the right to adopt or maintain any measure affecting the:

- transfer or disposition of equity interests or assets held by state enterprises or governmental

authorities;

- delegation to private sector the authority to supply services that are provided in the exercise

of governmental authority at the time of entry into force of the Agreement.

All sectors: Supply of

services by the presence of

natural persons

4

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art X.2)

SMBD (Art. X.13)

Turkey reserves the right to adopt or maintain any measure affecting the supply of services

though presence of natural persons in its territory, without prejudice to the provisions of

Annex on Movement of Natural Persons. However, Turkey shall comply with National

Treatment (Art. I-4), Local Presence (Art X.1), Local Management and Board of Directors

(Art. X.3) and Senior Management and Board of Directors (Art. X.13) obligations

concerning the entry and temporary stay of natural persons in its territory for sectors where

MA commitments are undertaken on Mode 4 in Part I-Section B, unless conditions,

limitations or reservations are inscribed against these obligations in Part I-Section B or Part

II.

Medical and dental

services (CPC 9312); and,

services provided by

midwives, nurses,

physiotherapists and para-

medical personnel (CPC

93191).

All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art X.2)

Turkey reserves the right to adopt or maintain any measure with respect to the provision of

medical and dental services (CPC 9312); and, services provided by midwives, nurses,

physiotherapists and para-medical personnel (CPC 93191).

Research and development

services All

NT (Art. I-4)

LP (Art. X.1)

PR (Art. X.3)


R&D services financed in whole or in part by public funds .

Real estate services 1,3,4 NT (Art. I-4)

LP (Art. X.1)

Turkey reserves the right to maintain, modify or adopt any measure with respect to the

provision of real estate services.

Technical testing and

analysis services

All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art X.2)

Turkey reserves the right to adopt or maintain any measure affecting the supply of technical

testing and analysis services (CPC 8676), except for the sub-sectors where MA commitments

are undertaken in Part II.

Other business services All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)

Turkey reserves the right to adopt or maintain any measure with respect to the provision of:

- Public opinion polling services (CPC 864*)

- Services incidental to agriculture (CPC 881*)

- Services incidental to forestry (CPC 881*)

- Services incidental to fishing (CPC 882)

- Services incidental to energy distribution (CPC 887)

- Placement and supply services of personnel (CPC 872)

- Related scientific and technical consulting services (CPC 8675)

- Specialty photography services (CPC 87504)

- Publishing services of newspapers, magazines and publications of news agencies (CPC

88442**)

- Sworn/certified translation services (CPC 87905**)

Audio-visual services:

Broadcasting

All NT (Art. I-4)

Turkey reserves the right to adopt or maintain any measure affecting the supply of

broadcasting services into and within its territory. For the purposes of this Schedule,

broadcasting covers the transmission of signs or signals via any technology for the reception

and/or display of aural and/or visual programme signals by all or part of the general public.

Distribution services All NT (Art. I-4)

LP (Art. X.1)


distribution services.

This reservation does not apply to retailing services, including through franchising, where

MA commitments are undertaken in Part II.

Environmental services 1

LP (Art. X.1)


environmental services.

Financial Services:

Insurance and insurance

related services

1, 2 NT (Art. I-4)

LP (Art. X.1)


non-life insurance services, except for:

(a) The hull insurance of aircrafts, helicopters and ships which are purchased through a

foreign loan or leased through a financial leasing contract from abroad, provided that the

insurance period is limited to the term of the credit or leasing contract;

(b) Marine liability insurance;

(c) Transportation insurance of imported and exported goods;

(d) Personal injury, sickness, health and motor vehicle insurance, limited to the time during

which people will be abroad or temporarily staying abroad,

(e) Insurance of ships and yachts registered with the Turkish International Maritime

Registry.

Financial Services:


related services

1, 4 NT (Art. I-4)

LP (Art. X.1)

Turkey reserves the right to adopt or maintain any measure with respect to the provision, by

adjusters and actuaries, of services auxiliary to insurance, such as consultancy, actuarial, risk

assessment and claim services.

Banking and other

financial services (excl.

insurance)

1 NT (Art. I-4)

LP (Art. X.1)


banking and other financial services (excl. insurance) except for the provision and transfer of

financial information; and, advisory and other auxiliary financial services on all the activities

listed in Article X.2(a)(v)-(xv) of Annex on Financial Services (Definitions).

Recreational, cultural and

sporting services

All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)

PR (Art. X.3)


recreational, cultural and sporting services (other than audio-visual services), including news

agency services (CPC 962); libraries, archives, museums, and other cultural services (CPC

963); sporting and other recreational services (CPC 964).

Maritime transport:

cabotage All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)

Turkey reserves the right to adopt or maintain any measure with regard to activities falling

within maritime cabotage as defined in the domestic legislation1, including but not limited to:

feeder services, transport of equipment including empty containers and, maritime offshore

services, as defined in the Annex on Maritime Transport.

Maritime auxiliary

services and services at the

port

All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)

Turkey reserves the right to adopt or maintain any measure that accords differential treatment

to persons of other countries due to application of reciprocity.

Air transport services All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)


air transport services, as set out in the Annex on Air Transport Services, except for the

selling of air transport services; computer reservation systems (CRS) services, maintenance

and repair of aircraft, and ground-handling services.

Space transport services All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)


space transport services (CPC 733).

Rail transport services All

NT (Art. I-4)

LP (Art. X.1)


pushing and towing services (CPC 7113); maintenance and repair of rail transport equipment

(8868**); and supporting services for rail transport services (CPC 743).

Road transport services 1 NT (Art. I-4)

Without prejudice to the provisions of Annex on Road Transport Services, Turkey reserves

the right to adopt or maintain any measure with respect to international road freight transport

services as defined in the Annex (CPC 7121 and7122).

1 According to the “Law Concerning Coastal Shipping (Cabotage) along Turkish Shores and Performance of Trade and Business in Turkish Ports and Territorial Waters” (Law No: 815), the right

to transport goods and passengers from one point to another along Turkish shores and to perform towing and piloting, and all other port services of any type, whatsoever, within or between

Turkish ports and shores shall belong exclusively to ships and vessels that fly the Turkish flag in accordance with Article 940 of the Turkish Commercial Code (Law No. 6102), and, to Turkish

nationals. For further clarification, this Schedule does not establish any right for natural person service suppliers for the conduct of activities falling under cabotage rights as stipulated in the “Law

Concerning Coastal Shipping (Cabotage) along Turkish Shores and Performance of Trade and Business in Turkish Ports and Territorial Waters”; these activities are reserved for Turkish nationals.

These activities include: the right to perform trade in rivers and lakes, in the Marmara Sea and the Straits, in territorial waters, and in gulfs, ports, bays and the like within territorial waters, by

means of fixed or floating vessels such as ships, tugboats, steamboats, motorboats, barges, lighters, rowboats and, in brief, all types or large or small vessels driven by machinery, sail or oars,

and/or dredges, cranes, crane barges, flat-bottomed boats, transport and water boats, salvage vessels, buoys, pontoons, rafts or the like, and by performing navigation and transportation using the

same. In addition, the right to catch or obtain fish, oysters, mussels, sponges, pearls, coral, mother-or-pearl and the like, extract sand, gravel and the like, extract and salvage sunken ships and

vessels or shipwrecks and the like either on the surface or on the bottom of the sea, perform diving, searching, piloting and maritime supply, work as captain, engineer, secretary, crew or workman

or in another capacity on Turkish maritime vessels, and carry out wharf porterage or any type of maritime business, within Turkish territorial waters, belongs exclusively to Turkish nationals.

Pipeline transport All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)


provision of pipeline transport services, including transportation of fuels (CPC 7131) and

transportation of other goods (CPC 7139).

Other transport services All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)


provision of any other transport services including combined transport.

Other services (CPC

95+97+98+99) All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)


provision of services included under CPC 95,97, 98, and 99.

PART I: HORIZONTAL COMMITMENTS-SECTION B

Sector or

Sub-sector Mode Market Access Commitments Obligations Concerned Conditions, Limitations and Reservations

All sectors 3

NT (Art. I-4)

Appointment of a fully authorized commercial

representative who is domiciled in Turkey is required

when commercial companies organized under the laws

of a foreign government open branches in Turkey.

[Turkish Commercial Code (Law No. 6102), Art. 40]

All sectors:

Collection,

transfer,

processing,

storage of data

All

NT (Art. I-4)

Collection, transfer, processing and storage of personal

data is subject to the provisions of Law no. 6698 on the

Protection of Personal Data.

In addition, data is required to be stored in the territory

of Turkey in the following cases:

- Taxpayers are obliged to store the electronic books of

accounts and other electronic records, documents and

reports (including, inter alia, e-invoices and e-tickets)

that they are required to keep pursuant to Tax Procedure

Law, at their own computing centres within the territory

of Turkey, or at locations where Turkish legislation

apply. The electronic documents, reports or records

stored by third parties or stored abroad do not have legal

validity before the Revenue Administration. However,

this requirement does not prevent the taxpayers from

having a secondary archive outside the Turkish territory.

The Revenue Administration has the authority to

determine and modify the scope of data to be kept

electronically by the taxpayers, and the standards and

technical requirements regarding the storage of data.

[Tax Procedure Law (Law no. 213) and the

Communiqué no. 397, Art. 6; Communiqué no. 431, Art.

7(3); Communiqué no. 433, Art. 9(h), and Communiqué

no 462, section 11 under the Tax Procedure Law; and

Electronic Books of Accounts Communiqué no. 1, section

4.1(d)]

(cont’d on next page.)

- Service providers and intermediary service providers

are responsible for the protection of personal data

obtained during the transactions made in accordance

with the Law no. 6563 on E-Commerce. Such personal

data cannot be disclosed to third persons or used for any

other purposes without the explicit consent of the

relevant person. [Law no. 6563 on the Regulation of

Electronic Commerce, Art. 10]

- Without prejudice to the legislation on the protection of

personal data, location data and traffic data within the

context of electronic communications can be transferred

abroad only upon the explicit consent of the relevant

person. [Law No. 5809 Electronic Communications,

Art.51(6)]

- Electronic certificate2 service suppliers are obliged to

generate certificate, signature creation and verification

data within the territory of Turkey and are not allowed to

transfer signature creation data abroad by any means.

[By-law on the Procedures and Principles Pertaining to

the Implementation of Electronic Signature Law, Art.

18.(1)]

- Registered electronic mail (REM)3 service suppliers are

obliged to keep the main and backup REM systems

within the territory of Turkey. [By-law on the

Procedures and Principles Pertaining to the Registered

Email System, Art. 16.(1)]


2 Electronic certificate means electronic data binding the signature verification data of the signature owner to the identity data of that person. 3 Registered electronic mail (REM) is an enhanced form of mail transmitted by electronic means (e-mail) which provides evidence relating to the handling of an e-mail including proof of

submission and delivery.

- Financial service suppliers are obliged to maintain their

computing centres (both primary information systems4

and their backups) within the territory of Turkey.

[-Insurance Law no. 5684;

-Private Pension Savings and Investment System Law no.

4632;

-Regulation on Internal Systems of Insurance,

Reinsurance and Pension Companies

-Banking Law no. 5411 and Regulations on Banking

Law;

-Bank Cards and Credit Cards Law no. 5464 and the

Regulation on Bank Cards and Credit Cards;

-Law on Payments and Securities Settlement Systems,

Payment Services and Electronic Money Institutions

No.6493 and Regulation on Payments and Securities

Settlement Systems, Payment Services and Electronic

Money Institutions;

-CMB Communiqué on Principles Regarding Investment

Services, Activities and Ancillary Services;

-CMB Guidelines on Investment Services, Investment

Activities and Investment Companies]

All Sectors All PR (Art. X.3) Any existing measure inconsistent with Article X.3 of

the Annex on Localisation.

All sectors:

commercial

presence

3

Companies organised under the laws of a

foreign government are required to obtain

authorization from the Ministry of Economy to

open representative (liaison) offices.

Representative (liaison) offices cannot engage

in commercial activities in Turkey.

Unbound for the constitution of foundations,

trusts, associations and any other non-profit

organizations.

NT (Art. I-4) Representative (liaison) offices cannot engage in

commercial activities in Turkey.

[Foreign Direct Investment Law No. 4875, Art. 3(h)]

All sectors:

real estate

acquisition

3

Foreign invested commercial companies are

permitted to acquire real estate in Turkey,

provided that the real estate to be acquired is

related to business activities listed in their

Articles of Association.

NT (Art. I-4) Foreign invested commercial companies can only

acquire real estate in Turkey on the condition that the

real estate to be acquired is related to business activities

listed in their Articles of Association.

[Land Registry Law No. 2644, Art. 36]

4 Information systems are comprised of infrastructure, hardware, software and data which ensure the execution of financial activities as well as the recording and use of information in electronic

media in a secure manner and as to be accessed when needed.

All sectors:

real estate

acquisition

1, 3, 4

The Council of Ministers has the authority to

determine, modify or limit the conditions of

and/or to partially or fully withdraw or ban the

right to real estate acquisition by foreign natural

persons and juridical persons organised under

the laws of a foreign government, in line with

national interests.

All sectors 4

Unbound except for measures concerning the

entry and temporary stay of natural persons in

the following categories:

I. Intra-corporate transferees are natural

persons who have been employed by a juridical

person of a Party for at least one year and who

are temporarily transferred to one of its

subsidiaries, affiliates or branches in the

territory of Turkey. The natural person

concerned shall belong to one of the following

categories.

Executives-Managers:

Natural persons working in a senior position

within a juridical person, who primarily direct

the management of the company, receiving

general supervision or direction principally

from the board of directors or shareholders of

the business or their equivalents, including:

(A) directing the company or a department or

sub-division thereof;

(B) supervising and controlling the work of

other supervisory, professional or managerial

employees; and

(C) having the authority personally to recruit

and dismiss or recommend recruiting,

dismissing or other personnel actions.

Specialists:

Natural persons working within a juridical

person, and who possess uncommon

knowledge essential to the company’s

production, research equipment, techniques or

management. In assessing such knowledge,

account will be taken not only of knowledge

specific to the company, but also of whether

the person has a high level of qualification

referring to a type of work or trade requiring

specific technical knowledge, including

membership of an accredited profession.

II. Trainees: means natural persons who have

been employed by a juridical person of a Party

for at least one year, who possess a university

degree and who are temporarily transferred to

one of its subsidiaries, affiliates, or branches in

the territory of Turkey for career development

purposes or to obtain training in business

techniques or methods.5

III. Business visitors are natural persons

working in a senior position within a juridical

person of a Party and who are responsible for

setting up a subsidiary, affiliate or branch in the

territory of Turkey. They do not engage in direct

transactions with the general public and do not

receive remuneration from a source located in

Turkey.

IV. Business Service Sellers: means natural

persons who are representatives of a service

supplier of a Party seeking temporary entry into

the territory of Turkey for the purpose of

negotiating the sale of services or entering into

agreements to sell services for that service

supplier. They do not engage in making direct

sales to the general public and do not receive

remuneration from a source located within

Turkey.

5 The recipient company may be required to submit a training programme covering the duration of stay for prior approval, demonstrating that the purpose of the stay is for training

corresponding to the level of a university degree.

Intra-corporate transferees and trainees need

to obtain a work permit from the Ministry of

Labour and Social Security in accordance with

the legislation on the employment of foreigners.

The work permits may be issued, in accordance

with respective laws, regulations and

requirements of Turkey, for a period of up to

one year. Turkey may authorise an extension for

the period allowed in conformity with the laws

and regulations in force in its territory.

Business visitors and business service sellers

are not required to obtain work permits. The

entry and temporary stay of business visitors

and business service sellers may be permitted,

in accordance with respective laws, regulations

and requirements of Turkey, for a period of up

to 90 days within 180 days.

NT (Art. I-4) Intra-corporate transferees and trainees are required to

obtain a work permit, which is issued for a period of up

to one year.

[International Labour Law No. 6735, Art. 10]

The entry and temporary stay of business visitors and

business service sellers is permitted for a period of up to

90 days within 180 days.

[Law on Foreigners and International Protection,

Art. 11]

All sectors 3, 4

Foreign engineers and architects may engage in

the provision of engineering and architecture

services in Turkey only after becoming a

temporary member of the related professional

chamber under the Union of Chambers of

Turkish Engineers and Architects.

PART II. SECTOR SPECIFIC COMMITMENTS

Sector or Sub-sector Market Access Commitments Obligations Concerned Conditions, Limitations and Reservations

1. BUSINESS SERVICES

A. Professional Services

(a) Legal services6

(i) Domestic law (host-country

law)

Legal advisory and

representational services,

legal arbitration, conciliation

and mediation services.

1)Unbound

2) None

3) Unbound

4)Unbound

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)

1,2,3,4) With regard to supply of “legal services”, the

following activities are reserved to Turkish “attorneys

at law (avukat)” enrolled with bar associations:

- Legal representation, advisory and documentation

services on domestic law,

- Litigation and representation of natural or legal

persons before Turkish courts, arbitrators,

conciliators or other bodies empowered with

jurisdictional functions; and, preparation of all

relevant legal documents.

Use of the professional title “avukat (attorney at law)”

is reserved for Turkish nationals enrolled with Turkish

Bar Associations.

[- Attorneyship Law No. 1136;

- Regulation on Attorney Partnerships by Turkish Bar

Association)

- Law No. 6325 on Arbitration and Conciliation for the

Settlement of Legal Disputes]

6

For the purposes of this entry:

‘domestic law (host-country law)’ – the law of Turkey.

‘foreign law (home-country law)’ – the law of the territories of TiSA Parties and other countries other than the law of Turkey.

‘international law’ – includes law established by international treaties and conventions, as well as customary law. ‘legal advisory services’ – includes provision of advice to and consultation with clients in matters, including transactions, relationships and disputes, involving the application or interpretation of law; participation with

or on behalf of clients in negotiations and other dealings with third parties in such matters; and preparation of documents governed in whole or in part by law, and the verification of documents of any kind for purposes

of and in accordance with the requirements of law. Does not include advice, consultation and documentation services performed by service suppliers entrusted with public functions, such as notary services, or services provided by patent or trade mark attorneys.

‘legal representational services’ – includes preparation of documents intended to be submitted to courts, administrative agencies, and other duly constituted official tribunals in matters involving the application and

interpretation of law; and appearance before courts, administrative agencies, and other duly constituted official tribunals in matters involving the application and interpretation of the specified body of law. (Footnote 1:

The inclusion of representational services before administrative agencies and other duly constituted official tribunals within the context of legal services does not necessarily mean that a licensed lawyer must supply

such services in all cases. The precise scope of services subject to licensing requirements is subject to the discretion of the relevant regulatory authority.) Does not include documentation services performed by service

suppliers entrusted with public functions, such as notary services, or services provided by patent or trade mark attorneys. ‘legal arbitration, conciliation and mediation services’ – preparation of documents to be submitted to, preparation for and appearance before, an arbitrator, conciliator or mediator in any dispute involving the

application and interpretation of law. As a sub-category, international legal arbitration, conciliation or mediation services refers to the same services when the dispute involves parties from two or more countries.

For the purposes of these definitions: ‘arbitration’ is taken to mean a process in which the parties to a dispute present arguments and evidence to a dispute resolution practitioner (the arbitrator) who makes a determination.

‘mediation’ is taken to mean a process in which the parties to a dispute, with the assistance of a dispute resolution practitioner (the mediator), identify the disputed issues, develop options, consider alternatives and

endeavour to reach an agreement. The mediator has no advisory or determinative role in regard to the content of the dispute or the outcome of its resolution, but may advise on or determine the process of mediation whereby resolution is attempted.

‘conciliation’ is taken to mean a process in which the parties to a dispute, with the assistance of a dispute resolution practitioner (the conciliator), identify the issues in dispute, develop options, consider alternatives and

endeavour to reach an agreement. The conciliator may have an advisory role on the content of the dispute or the outcome of its resolution, but not a determinative role. The conciliator may advise on or determine the process of conciliation whereby resolution is attempted, and may make suggestions for terms of settlement, give expert advice on likely settlement terms, and may actively encourage the participants to reach an

agreement.

(ii) Foreign Law (home-country

law)

Legal advisory services and

(in relation to foreign law

only) legal arbitration,

conciliation and mediation

services.

(iii) International Law


(in relation to international

law only) legal arbitration,


services.

1) None

2) None

3) For the supply of “advisory services on

foreign and international law” by foreign

lawyers, establishment in the form of

“foreign attorney partnership (yabancı

avukatlık ortaklığı)” is required. Foreign

lawyers may establish such partnerships

either among themselves or with Turkish

attorneys.

4) Unbound except as indicated in the

horizontal section.

NT (Art. I-4)

3) Establishment in the form of “foreign attorney

partnership (yabancı avukatlık ortaklığı)” is required.


is reserved for the Turkish nationals enrolled with

Turkish Bar Associations.



Association;



(b) Accounting, auditing and

bookkeeping services (CPC

862)

1) Unbound

2) None

3) Authorized financial advisers7 may

associate their works in the form of a

“partnership office (adi ortaklık)” or an

“equity company8 (sermaye şirketi)” in

accordance with the Turkish

Commercial Code after becoming a

member of the related Chamber.

Foreign auditing firms may carry out

independent audit in Turkey on the

condition that they are authorized by

Public Oversight, Auditing and

Accounting Standards Authority, in

accordance with the principle of

reciprocity.

Auditing firms are required to be

established as “equity companies” in


Commercial Code. Auditing firms that

will perform the audits of capital market

institutions are required to be established

as “joint-stock corporations”.

For an audit firm to be authorized:

- Majority of its capital and voting

rights shall be owned by auditors,

and all the partners of the firm shall

be members of profession.9

- The members of its managing body

shall be entirely composed of the

members of profession; and

majority of them, but provided that

this ratio does not exceed seventy-

five percent, shall be the auditors

permanently employed by it. 4) Unbound

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)

3, 4) Only financial advisers (“certified public

accountants (serbest muhasebeci mali müşavir)”) and

“sworn-in public accountants (yeminli mali müşavir)”

can supply accounting, auditing and bookkeeping

services. Turkish nationality is required for both

professions. However, the nationality requirement can

be waived for financial advisers subject to reciprocity

condition. Approval of the Prime Minister upon the

proposal of the Ministry of Finance is required for the

authorization of financial advisors in such a case.

Commercial presence by authorized natural person

financial advisers is permitted only in the form of a

partnership office or an equity company among

authorized financial advisers, and on the condition of

being a member to related Chamber. Foreign titles and

names cannot be used in the titles of partnerships or

equity companies among Turkish and foreign financial

advisers.

In addition, foreign auditing firms and auditors may

carry out independent audit in Turkey on the condition

that they are authorized by Public Oversight, Auditing

and Accounting Standards Authority, in accordance

with the principle of reciprocity.


- Majority of its capital and voting rights shall be

owned by auditors, and all the partners of the firm

shall be members of profession.10

- The members of its managing body shall be entirely

composed of the members of profession; and

majority of them, but provided that this ratio does

not exceed seventy-five percent, shall be the auditors

permanently employed by it.

7 The term “financial adviser” used in this entry refers to a “Certified Public Accountant (Serbest Muhasebeci Mali Müşavir)” pursuant to the “Law No. 3568 on Certified Public

Accountants and Sworn-In Public Accountants”. Foreign financial advisers can be authorized, under reciprocity condition, by the approval of the Prime Minister upon the

proposal of the Ministry of Finance.

[- Law No. 3568 on Certified Public Accountants and

Sworn-In Public Accountants;

- Turkish Commercial Code (Law No: 6102)

- Statutory Decree (No. 660) on the Organization and

Duties of Public Oversight, Accounting and Auditing

Standards Authority;

- By Law on Independent Audit;

- Circular No. 1996/2 by the Chambers of Certified

Public Accountants and Sworn in Public Accountants

(TÜRMOB)]

(c) Taxation Services

- Business tax planning

and consulting services

(CPC 86301)

1) None

2) None

3) None


horizontal section.

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)

1, 3, 4) Only “sworn-in public accountants” can supply

taxation services other than business tax planning and

consulting services. Turkish nationality is required.

[-Tax Procedure Law no. 213 and related

Communiqués;

-Law No. 3568 on Certified Public Accountants and

Sworn-In Public Accountants]

(d) Architectural services

(CPC 8671)

1) None

2) None

3) None


horizontal section.

(e) Engineering services (CPC

8672)

1) None

2) None

3) None


horizontal section.

(f) Integrated engineering

services (CPC 8673)

1) None

2) None

3) None


horizontal section.

8 Equity company types are “joint-stock corporation (anonim şirket)”, “limited liability company (limited şirket)” and “partnership limited by shares (sermayesi paylara bölünmüş komandit

şirket)”. 9 ”Members of profession” are “certified public accountants (serbest muhasebeci mali müşavir)” or “sworn-in public accountants (yeminli mali müşavir)” pursuant to the Law No. 3568; and

Turkish nationality requirement exists for members of profession. 10 ”Members of profession” are “certified public accountants (serbest muhasebeci mali müşavir)” or “sworn-in public accountants (yeminli mali müşavir)” pursuant to the Law No. 3568; and

Turkish nationality requirement exists for members of profession.

(g) Urban planning and

landscape architecture

services (CPC 8674)

1) None

2) None

3) None


horizontal section.

(i) Veterinary services (CPC

932)

1) None

2) None

3) Unbound except for animal hospitals.

Wholly foreign owned animal hospitals

can be established in Turkey on the

condition that all the veterinaries

employed are Turkish nationals.

Obtaining an authorisation for

establishment from the Ministry of

Food, Agriculture and Livestock is

required. Responsible director of the

animal hospital must be a veterinary.

4) Unbound. For further clarity, Turkish

nationality is required for performing the

veterinary profession.

NT (Art. I-4)

LMBD (Art. X-2)

3, 4) Nationality requirement exists for veterinaries.

Responsible director of an animal hospital must be a

veterinary.

[Law No. 6343 on the Exercise of Veterinary

Profession]

B. Computer and Related

Services

(a) Consultancy services

related to the installation of

computer hardware

(CPC 841)

(b) Software implementation

services (CPC 842)

(c) Data processing services

(CPC 843)

(d) Database services including

data storage, data hosting

and web hosting services

(CPC 844)

1) None

2) None

3) None


horizontal section.

1) None

2) None

3) None


horizontal section.

1) None

2) None

3) None


horizontal section.

1) Unbound

2) None

3) None


horizontal section.

(e) Other CRS

- Maintenance and repair

services of office machinery

and equipment including

computers (CPC 845)

- Training services for staff of

clients (CPC 84990**)

1) None

2) None

3) None


horizontal section.

1) None

2) None

3) None


horizontal section.

C. Research and Development

Services (excluding R&D

financed in whole or in

part by public funds)

(a) R&D services on natural

sciences (CPC 851)

(b) R&D services on social

sciences and humanities

(CPC 852)

(c) Interdisciplinary R&D

services (CPC 853)

1) None

2) None

3) None.


horizontal section. In addition, to

conduct scientific research activities in

the Turkish territory, foreign natural

persons are required to obtain prior

permission.

NT (Art. I-4)

3) Juridical persons duly established in Turkey but

acting on behalf of foreign persons are required to

obtain prior permission to conduct scientific research

activities in the Turkish territory.

4) Foreign natural persons are required to obtain prior

permission to conduct scientific research activities in

the Turkish territory.

[Council of Ministers Decision No: 88/12839 and

dated 04/04/1988 on “Principles Applicable to

Foreigners or Those Applying on behalf of Foreigners

who Request to Conduct Scientific Research and

Analysis or Make Movies in Turkey, and to Foreign

Press Members”.] E. Rental/Leasing Services

without Operators

(a) Relating to ships11

(CPC

83103)

(b) Relating to aircraft12

(CPC

83104)

(c) Relating to other transport

equipment (CPC 83101 +

83102 + 83105)

(d) Relating to other

machinery and equipment

(CPC 83106-83109)

(e) Leasing or rental services

concerning personal and

household goods (CPC

832)

1) None

2) None

3) None


horizontal section.

F. Other Business Services

(a) Advertising services

(CPC 871)

1) None

2) None

3) None


horizontal section.

11 This commitment does not include or confer any right with regard to carrying the Turkish flag.

(b) Market research services

(CPC 864)

1) None

2) None

3) None


horizontal section.

(c) Management consulting

services (CPC 865)

1) None

2) None

3) None


horizontal section.

(d) Services related to

management consulting

(CPC 866 except 86602)

1) None

2) None

3) None


horizontal section.

(e) Technical testing and

analysis services, excluding

technical testing, analysis

and control (inspection)

services relating to

construction and

construction materials12

- Composition and purity

testing and analysis

services (CPC 86761**)13

- Testing and analysis

services of physical

properties (CPC 86762)


services of integrated

mechanical and electrical

components (CPC 86763)

- Technical inspection

services (CPC 86764)

1) None

2) None

3) None


horizontal section.

1) None

2) None

3) None


horizontal section.

1) None

2) None

3) None except establishment of a

commercial presence for testing and

analysis services regarding automobiles

and other motor vehicles is subject to an

economic needs test.

Main criteria: the number of and impact

on existing domestic suppliers,

protection of public health, safety, and

the environment.


horizontal section.

1) None

2) None

3) None


horizontal section.

12 Turkey does not assume any commitments regarding technical testing and analysis services relating to the construction sector, including construction and building control activities performed

to ensure that the whole construction process, as well as the construction materials used as inputs in the construction, are in conformity with the technical specifications and standards specified

by relevant laws and regulations. 13 Only inspection, testing and analysis services of air, water, noise level and vibration level under CPC 86761.

(f) Services incidental to

hunting (CPC 881**)

1) Commercial presence is required.

2) None

3) Only Group A travel agencies may

operate in this field with the condition

of obtaining a hunting licence


horizontal section.

LP (Art. X.1)


[- Law No. 4915 on Land Hunting;

- Regulation concerning the Principles and Procedures

applicable to Domestic and Foreign Hunters within the

context of Hunting Tourism (published on the O.G.

dated Jan. 8th, 2005)]

(h) Services incidental to

mining

(CPC 883+5115)


2) None

3)14

None

4) “Technical supervisors (teknik

nezaretçi)” and “permanent supervisors

(daimi nezaretçi)” in mining sites are

required to be Turkish nationals.

Otherwise unbound except as indicated

in the horizontal section.

NT (Art. I-4)

LP (Art. X.1)


4) “Technical supervisors (teknik nezaretçi)” and

“permanent supervisors (daimi nezaretçi)” in mining

sites are required to be Turkish nationals.

[-Mining Law No. 3213;

-Regulation on the Implementation of Mining Law]

(l) Investigation and security

(CPC 873)

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)

Private investigation and security services can only be

provided by companies established in accordance with

Turkish Commercial Code. Establishment of such

companies is subject to the approval of Ministry of

Interior.

Turkish nationality is required for the founders and

managers of private investigation and security

companies, as well as the private security guards.

Establishment of private investigation and security

companies by foreign persons or provision of such

services by foreign investigation and security

companies is subject to reciprocity.

[- Law no. 5188 on Private Security Services

- Regulation on the Implementation of Law no. 5188

published in the Official Gazette dated 7 October 2004,

no. 25606]

(n) Maintenance and repair of

equipment (not including

maritime vessels, aircraft or

other transport equipment)

(CPC 633+ 8861-8866)

1) None

2) None

3) None


horizontal section.

14 Petroleum and Mining Laws specify that services incidental to mining require an operating licence.

(o) Building-cleaning services

(CPC 874)

1) None

2) None

3) None


horizontal section.

(p) Photographic services

(CPC 875) except

specialty photography


1) None

2) None

3) None


horizontal section.

(q) Packaging services

(CPC 876)

1) None

2) None

3) None


horizontal section.

(r) Printing

(CPC 88442**)

Publishing

(CPC 88442**)

[Excluding publishing

services of newspapers,

magazines and

publications of news

agencies]

1) None

2) None

3) None


horizontal section.

1) None

2) None

3) None


horizontal section.

(s) Convention services

(CPC87909**)

1) None

2) None

3) None


horizontal section.

(t) Other

- Translation and

interpretation services

(CPC 87905)

1, 3) None except for translation and

interpretation services supplied by

sworn/certified interpreters in relation

with notary services.

- Sworn/certified translation services:

unbound

2) Non

4) Unbound for sworn/certified translation

services. Otherwise unbound except

as indicated in the horizontal section.

- Representation/agency

services before the Turkish

Patent Institute (TPE)

1,3) Only qualified persons registered with

the Turkish Patent Institute (the

Institute) can act as an agent in Turkey

to perform procedures for the

establishment and protection of

industrial property rights, and to conduct

official procedures before the Institute.

Legal persons acting as representatives

before the Institute must be represented

by a natural person who has the

qualifications of an agent.

2) None

4) Only a Turkish national who resides in

Turkey can become a natural person

agent.

NT (Art. I-4)

LP (Art. X.1)

3, 4) Only a Turkish national who resides in Turkey

can become a natural person agent to perform

procedures for the establishment and protection of

industrial property rights, and to conduct official

procedures before the Institute.

Legal persons acting as representatives before the

Institute must be represented by a natural person who

has the qualifications of an agent.

[- Law No. 5000 on the Establishment and Functions of

Turkish Patent Institute, Article 30;

- Decree Law No. 551 on the Protection of Patent

Rights, Article 171;

- Decree Law No. 554 on the Protection of Industrial

Designs, Article 67;

- Decree Law No. 555 on the Protection of

Geographical Indications, Article 14;


Trademarks, Article 80;

- Law No 5147 on the Protection of Integrated Circuits

Topographies, Article 23]

2. COMMUNICATION

SERVICES

Postal Services (postal and

courier services)

Postal services cover the

acceptance, collection,

processing, shipment,

distribution and delivery of

“postal items” as defined in

the Law on Postal Services

No. 6475

1, 3) Establishment in the form of an “equity

capital company (sermaye şirketi)”15

is

required.

“Posta ve Telgraf Teşkilatı Anonim Şirketi

(PTT A.Ş.)”, a wholly state owned

enterprise, is authorized by the Law on

Postal Services to supply postal services and

has the monopoly right to supply the

following services:

- acceptance, collection, sorting, transport,

distribution and delivery of domestic and

international items of correspondence

whose weight or fee limits are determined

by the Council of Ministers16;

- Without prejudice to the provisions related

with electronic notification of the Tax

Procedural Law no. 213 dated 4/1/1961,

acceptance, collection, sorting, transport,

distribution and delivery of any type of

official notice, including through

electronic media, within the scope of the

Law numbered 7201 and other laws;

- Postal services of Turkish Armed Forces

in peacetime;

- Printing and sale of postal stamps that

show the fees to be collected in postal

services, personal stamps, commemorative

stamps, postcards and first day covers.

2) None


horizontal section.

LP (Art. X.1)

1) Commercial presence is required in the form of an

equity capital company.

[- Law on Postal Services No. 6475;

- By-law on the Provision of Postal Services;

- By-law on Authorization for Postal Services Sector]

15

In accordance with Article 124 of the Turkish Commercial Code (Law No. 6102), the following are considered equity capital companies: “joint-stock company (anonim

şirket)”; “limited liability company (limited şirket)”; “limited partnership in which the capital is divided into shares (sermayesi paylara bölünmüş komandit şirket)”. 16

Until the weight and/or fee limits of monopoly right is determined by the Council of Ministers, the PTT A.Ş. shall continue to exercise its monopoly right over all the open

and closed letters and postcards bearing any kind of correspondence without any weight limit.

C. Telecommunication

Services17

(a) Voice telephone

services

(b) Packet-switched data

transmission services

(c) Circuit-switched data


(d) Telex services

(f) Facsimile services

(g) Private leased circuit

services

(h) Electronic mail

(i) Voice mail

(j) On-line information

and data-base

retrieval

(k) Electronic data

interchange

(l) Enhanced/value-added

facsimile services, incl.

store and forward, store and

retrieve

(m) Code and protocol

(n) On-line information

and/or data processing

(o) Others

- Mobile services

analog/digital cellular

- Paging services

- Cable broadcasting services

- Satellite Communications

Services (VSAT, SCPC

VSAT) Satellite Platform

Services

- GMPCS services

- Infrastructure services

- Private/Public Access

- Mobile Radio Services

- Directory Information

Services

1), 3) Except for national public

organizations and state-owned

enterprises foreseen by law, in order to

be authorized, establishment in the

territory of Turkey is required in the

form of a joint-stock or limited liability

company.

Electronic communications

(telecommunications) services and

infrastructure requiring authorization in

the form of limited number of rights of

use can be provided only by joint-stock

companies.

2) None


horizontal section

LP (Art X.1)

1) Commercial presence is required in the form of a

joint-stock or limited liability company.

[- Law on Electronic Communications No. 5809;

- By-law on Authorization for Electronic

Communications Sector]

17 The scope of telecommunications in this Schedule does not cover any kind of (analog-digital) radio and TV programme broadcasting services to the public.

D. Audiovisual services

(Excluding Broadcasting)

(a) Motion picture and video

tape production and

distribution services (CPC

9611)

(b) Motion picture projection

services (by cinema theatre

owners only) (CPC 9612**)

(c) Radio and television services

(CPC 96131, 96132)

(d) Radio and television

programme distribution18

services, excluding

transmission


commercial presence is required for the

distribution of motion pictures in

physical media (CD, video-tape, etc).

2) None

3) None


horizontal section.

1) Unbound*

2) None

3) None


horizontal section.

1) None

2) None

3) None


horizontal section.



distribution of radio and TV

programmes in physical media (CD,

video-tape, etc).

2) None

3) None


horizontal section.

LP (Art X.1)

1) Commercial presence is required for the distribution

of motion pictures, radio and TV programmes and

sound recordings in physical media.

[- Law No. 5846 on Intellectual and Artistic Work;

- Regulation on the Recording and Registration of

Intellectual and Artistic Works;

- Regulation on the Procedures and Principles

Regarding the Certification of the Enterprises

Disseminating or Performing the Recording, Copying

and Sale of the Materials on which Intellectual and

Artistic Works are Fixed]

18 For greater certainty, distribution services in this context may include the licensing of radio and television programmes to other service providers for exhibition, broadcast or the transmission,

rental, sale or use. Turkey does not undertake any commitments on the provision of transmission services for radio and television programmes.

(e) Sound recording

(For the purposes of this

Schedule, sound recording

service activities are

defined as fixation of a

series of musical, spoken,

or other sounds in a

studio, but not including

the sounds accompanying

a motion picture, radio or

television programme or

other audio-visual work.)

1) None

2) None

3) None


horizontal section.

E.

-Telegraph Services

- Registered Electronic Mail

Services

1, 3) PTT A.Ş., a wholly state owned

enterprise, is the exclusive service

supplier

2) None

4) Unbound

1, 3) Either a joint-stock company that is

established to build and operate a

registered electronic mail (REM) system

pursuant to the Turkish Commercial

Code No. 6102; or the administration

that is authorized to make official

electronic notices according to the

provisions of Notification Law No. 7201

(The General Directorate of Post and

Telegraph Organization-PTT A.Ş.) can

provide registered electronic mail

services.

2) None


horizontal section.

LP (Art X.1)

1) Commercial presence in the form of a joint-stock

company is required.

[- Turkish Commercial Code No. 6102, Article 1525;

- By-law on the Procedures and Principles Pertaining

to the Registered E-mail System.]

3. CONSTRUCTION AND

RELATED

ENGINEERING

SERVICES

(CPC 51)

1) None

2) None

3) None


horizontal section.

5. DISTRIBUTION

SERVICES19

C. Retailing services

Only for CPC 631, 632,

6112, 61130** (retailing

services of parts and

accessories of motor

vehicles), 61210** (retailing

services of motorcycles and

snowmobiles and related

parts and accessories); but

excluding retailing services

of alcoholic beverages

(63107**); tobacco products

(63108); pharmaceutical

goods (63211); optical goods

(CPC 63254**); seeds,

fertilizers, pesticides and

preparations of a kind used

in animal feeding

(63295**); coal and wood

(CPC-63297); instruments

and appliances for

measuring electricity, gas

and liquid (CPC482**);

and, taximeters.

1) Unbound

2) None

3) None except Turkey may apply

economic needs tests on commercial

presence. In addition, Turkey may take

any measure affecting the supply of any

product subject to import prohibition or

non-automatic import licensing.


horizontal section.

19

Turkey allows distribution services to be supplied via franchising where MA commitments are undertaken.

5. EDUCATION SERVICES

A.,B.,E. Primary, Secondary

and Other Educational

Services (CPC 921,

922, 929)

1,3) Natural and legal foreign persons

directly or by establishing partnership

with Turkish citizens may establish

international educational institutions

(including vocational and technical

schools) only for foreign students.

2) None

4) Foreign teachers and experts may work

in primary and secondary educational

institutions and in non-formal

educational institutions (i.e. in language

teaching and vocational training centers)

after getting a prior permission from the

Ministry of National Education to obtain

a work permit from the Ministry of

Labour and Social Security

NT (Art. I-4)

1,3) Foreign persons, either directly or through

partnership with Turkish persons can only establish

international educational institutions (including

vocational and technical schools). These institutions

can only admit foreign students.

4) Foreign teachers and experts may work in primary

and secondary educational institutions and in non-

formal educational institutions (i.e. in language

teaching and vocational training centers) after

obtaining a prior permission from the Ministry of

National Education. General work permit requirements

also apply.

[Law No. 5580 on Private Educational Institutions]

C. Higher Education Services

(CPC 923)

1) None

2) None

3) Private universities [“non-profit

foundation higher education institutions

(vakıf yükseköğretim kurumları)”]can

only be established by foundations

constituted under Turkish Civil Code,

and through the enactment of a specific

Law. All the members of the

administrative board of higher education

institution [i.e. the Board of Trustees

(Mütevelli Heyeti)], as well as the

president (rector) must be Turkish

nationals.

4) All the members of the administrative

board of higher education institution [i.e.

the Board of Trustees (Mütevelli

Heyeti)], as well as the president (rector)

must be Turkish nationals. Otherwise,

unbound except as indicated in the

horizontal section.

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)

3,4) Private universities [“non-profit foundation higher

education institutions (vakıf yükseköğretim

kurumları)”] can be established only by foundations

constituted under Turkish Civil Code, and through the

enactment of a specific Law.

All members of the administrative board of higher

education institution [i.e. the Board of Trustees

(Mütevelli Heyeti)], as well as the president (rector)

must be Turkish nationals.

[- Constitution of the Republic of Turkey, Art.130-132

- Law No. 2547 on Higher Education

- Law No. 2809 on the Organization of Higher

Education Institutions

- Regulation by the Higher Education Council

concerning Non-profit Foundation Higher Education

Institutions (“Vakıf Yükseköğretim Kurumları

Yönetmeliği”)]

D. Adult Education (CPC 924)

1) None

2) None

3) Foreign persons directly or by

establishing partnership with Turkish

persons may only establish international

educational institutions, and only for

foreign students.


in educational institutions after getting a

prior permission from the Ministry of

National Education to obtain a work

permit from the Ministry of Labour and

Social Security.

NT (Art. I-4) 3) Foreign persons, either directly or through


international educational institutions. These institutions


4) Foreign teachers and experts may work in

educational institutions after obtaining a prior

permission from the Ministry of National Education.

General work permit requirements also apply.


6. ENVIRONMENTAL

SERVICES

A. Sewage Services

(CPC 9401)

B. Refuse Disposal Services

(CPC 9402)

C. Sanitation and Similar

Services (CPC 9403)

D. Other:

- Cleaning services of

exhaust gases (CPC 9404)

- Noise abatement services

(CPC 9405)

1) Unbound

2) None

3) None


horizontal section

1) Unbound

2) None

3) None


horizontal section.

1) Unbound

2) None

3) None


horizontal section.

1) Unbound

2) None

3) None


horizontal section.

1) Unbound

2) None

3) None


horizontal section.

7. FINANCIAL SERVICES

HORIZONTAL COMMITMENTS

Measures affecting the supply of services through commercial presence which are applicable to all sub-sectors of Financial Services are listed below.

Banking 3) Establishment of a bank or opening the

first branch of a foreign bank in Turkey is

subject to the permission of the Banking

Regulation and Supervision Board. A

permission to operate should also be

received following the consummation of

establishment or branch opening transactions

in order to start receiving deposits and/or

conducting banking transactions.

Banks have to be established in the form of a

joint-stock company. At least one member

of the board of directors of the banks must

reside in Turkey.

Lending limits for the branches of foreign

banks are based on branch capital rather than

worldwide capital.

NT (Art I-4)

LMBD (Art. X.2)

SMBD (Art X.13)

3) Lending limits for the branches of foreign banks are

based on branch capital rather than worldwide capital.

At least one member of the board of directors of the

banks must reside in Turkey.

[- Banking Law No. 5411;

- Regulation on Operations of Banks Subject to

Permission and Indirect Shareholding;

- Regulation On Internal Systems Of The Banks and

ICAAP]

Insurance 3) Insurance and reinsurance companies

have to be established in the form of a joint-

stock or a mutual company (cooperative).

For the purpose of commencing their

operation, insurance and reinsurance

companies have to obtain a license from the

Undersecretariat of Treasury for each

insurance branch in which they would like to

operate.

Securities Market 3) For the establishment and operations of

capital market institutions20

permission of

the Capital Markets Board (CMB) is

required. Also, banks engaging in capital

market activities (investment services) are

required to obtain from the CMB appropriate

authorization certificates for these activities.

Establishment of branches and agencies by

securities intermediary institutions

established in Turkey also requires the

CMB's permission.

Securities intermediary institutions,

investment companies, and other capital

market institutions with the exception of

investment funds21

can only be established

in the form of a joint-stock company.

Establishment of branches and

representative offices of foreign securities

intermediary institutions is not permitted.

The CMB may take any measure to ensure

that the establishment of capital market

institutions or their branches and agencies

are beneficial to the economic development

of Turkey as well as to the stability,

soundness and development of capital

markets.

3) Establishment of branches and representative offices

of foreign securities intermediary institutions is not

permitted.

[- Capital Market Law No. 6362

- CMB Communiqué on Principles of Investment

Funds,

- CMB Communiqué on Principles of Exchange Traded

Funds,

- CMB Communiqué on Real Estate Investment Funds,

- CMB Communiqué on Principles of Venture Capital

Investment Funds,

- CMB Communiqué on Portfolio Management

Companies and Activities of Such Companies,

- CMB Communiqué on Principles Regarding

Investment Services, Activities and Ancillary Services,


Establishment and Activities of Investment Firms,

- CMB Communiqué on Principles of Real Estate

Investment Companies,


and Private Equity Investment Companies,

- CMB Communiqué on Principles of Securities


- CMB Communiqué on Portfolio Depositary Service

and Providers of Such Service,

- The Individual Pension Savings and Investment

System Law No. 4632,

-CMB Implementing Regulation on the Principles

Applicable to the Establishment and Operations of

Pension Investment Funds]

20 According to the Capital Market Law, capital market institutions are specified as follows:

(a) Investment firms,

(b) Collective investment schemes,

(c) Independent auditors, appraisal companies and rating agencies performing activities in capital market,

(d) Portfolio management companies

(e) Mortgage finance corporations,

(f) Housing finance and asset finance funds,

(g) Asset lease companies,

(h) Central clearing institutions,

(i) Central securities depositories,

(j) Trade repositories,

(k) Other capital market institutions, the establishment and operation principles for which are determined by the Capital Markets Board. 21 According to Capital Market Law, investment funds can be established in contractual type within the fund rules in conformity with the fiduciary ownership principles.

OTHER FINANCIAL

SERVICES

A. Financial leasing service

3) Financial leasing companies (lessors) can

only be established in the form of a joint-

stock company.

Establishing a financial leasing company or

opening of first branches in Turkey by

companies established abroad is subject to

prior permission of the Banking Regulation

and Supervision Board. A permission to

operate should also be received.

B. Factoring and consumer

financing services

3) Factoring companies and financing

companies must be established in the form

of a joint-stock company.

Establishment of these companies is subject

to prior permission of the Banking



received.

C. Foreign exchange dealers

(“Yetkili müessese”)

3) In order to engage in activities as a

foreign exchange dealer (“yetkili

müessese”), authorization from the

Undersecretariat of Treasury must be

obtained. The Undersecretariat may take

any measure to ensure that the establishment

of foreign exchange dealers or their

subsequent branches and agencies is

beneficial to the economic development of

Turkey as well as to the stability, soundness

and development of financial markets.

Foreign exchange dealers must be

established in the form of a joint-stock

company.

D. Precious metals exchange

3) To operate as a Precious Metal

Intermediary Institution (PMII) one should

obtain permission from Undersecretariat of

Treasury. Banks, foreign exchange dealers,

joint-stock companies engaging in trade and

production of precious metals, branches,

which are located in Turkey, of the

companies resident abroad engaging in trade

and production of precious metals may

apply to the Undersecretariat to operate as a

PMII. Moreover, it is also possible to apply

for permission to the Undersecretariat to

operate solely as a precious metal brokerage

institution and to be established as a joint

stock company to operate as such.

Sector specific Financial Services Commitments (horizontal Mode 3 restrictions/qualifications listed above also apply):

Insurance and Insurance-related

Services

(i) Direct insurance

(A) Life

1) None

2) None

3) None


horizontal section.

(B) Non-life

1),2) Unbound except:

(a) The hull insurance of aircrafts,

helicopters and ships which are

purchased through a foreign loan or

leased through a financial leasing

contract from abroad, provided that the

insurance period is limited to the term

of the credit or leasing contract;


(c) Transportation insurance of imported

and exported goods;

(d) Personal injury, sickness, health and

motor vehicle insurance, limited to the

time during which people will be

abroad or temporarily staying abroad,

(e) Insurance of ships and yachts

registered with the Turkish

International Maritime Registry.

3) None


horizontal section.

(ii) Reinsurance and

retrocession

1) None

2) None

3) None


horizontal section.

(iii) Insurance intermediation

such as brokerage and

agency

1),2) Unbound for intermediaries (agents

and brokers) except the ones dealing

with life insurance and non-life

insurance categories indicated in the

“(i)(B) Non-life” section and

reinsurance brokers.

3) Juridical person insurance and

reinsurance agencies and brokers must

be established in Turkey in the form of

a joint-stock or limited-liability

company. The general manager and the

deputy managers responsible for

technical departments must reside in

Turkey. Insurance agencies and brokers

that are established in foreign countries

may engage in insurance intermediation

activities only by means of opening

branches in Turkey. Institutional form

and residency requirements stipulated

above apply for branches, as well.

4) Natural person insurance and

reinsurance brokers and agents have to

reside in Turkey. Otherwise, unbound

except as indicated in the horizontal

section.

LP (Art. X.1)

LMBD (Art. X.2)

SMBD (Art X.13)

3) The general manager and the deputy managers

responsible for technical departments must reside in

Turkey.

4) Natural person insurance and reinsurance brokers

and agents have to reside in Turkey.

[- Insurance Law No. 5684;

- Regulation on Insurance Agencies;

- Regulation on Insurance and Reinsurance Brokers]

(iv) Services auxiliary to

insurance, such as

consultancy, actuarial, risk

assessment and claim

settlement services

1),2) None except adjusters and actuaries.

3) None

4) Unbound for adjusters and actuaries.



Banking and Other Financial

Services

(v) Acceptance of deposits and

other repayable funds from

the public

1) Unbound

2) None

3) No natural person or legal entity other

than credit institutions or those

authorized under specific regulations can

accept deposits or other repayable funds

from the public.


horizontal section.

(vi) Lending of all types

including consumer credit,

mortgage credit, factoring

and financing of

commercial transaction

(A) Consumer credit

(B) Factoring

(C) Mortgage credit

1) Unbound

2) None

3) Banks and financing companies can lend

consumer credits.


horizontal section.

1) Unbound

2) None

3) Banks and factoring companies can

engage in factoring activities.


horizontal section.

1) Unbound

2) None

3) Financial leasing companies and

financing companies which are found

eligible to operate in housing finance by

the Banking Regulation and Supervision

Agency, as well as banks can engage in

trading of mortgage credits.


horizontal section.

(D) Financing of commercial

transactions

1) Unbound

2) None

3) Banks, financial leasing companies,

factoring companies, and financing

companies can engage in financing of

commercial transactions.


horizontal section.

(vii) Financial leasing

1) Unbound

2) None

3) Banks which are not authorized to

accept deposits and financial leasing

companies can engage in financial

leasing transactions.


horizontal section.

(viii) All payment and money

transmission services,

including credit and debit

cards and travellers cheques

1) Unbound

2) None

3) Payment and money transmission

services can only be conducted by banks

and institutions authorized in accordance

with the “Law on Payments and

Securities Settlement Systems, Payment

Services and Electronic Money

Institutions”. The institutions engaging

in the provision of payment and money

transmission services are required to be

established in Turkey, in the form of a

joint-stock company.

Credit and debit cards services can only

be provided by banks.

Transfers of foreign exchange abroad

must be carried out through the banking

system.


horizontal section.

(ix) Guarantees and

commitments

1) Unbound

2) None

3) None


horizontal section.

(x) Trading for own account or

for account of customer,

whether on an exchange, in

an over-the-counter market

or otherwise, the following:

(A) Money market

instruments (including

cheques and bills)

(B) Foreign exchange

(C) Derivative products

including, but not

limited to, futures and

options

1) Unbound

2) None

3) Trading of money market instruments

can be performed by both banks and

securities intermediary institutions;

however, securities intermediary

institutions cannot engage in the trading

of cheques and bills.


horizontal section.

1) Unbound

2) None

3) Banks, foreign exchange dealers,


(limited to investment services and

activities), as well as national postal

administration (the General Directorate

of Post and Telegraph Organization)

can engage in foreign exchange trading.


horizontal section.

1) Unbound

2) None

3) Authorized banks and securities

intermediary institutions can engage in

trading of derivative products in

compliance with CMB legislation.

Authorised banks can execute orders in

derivative instruments except for those

based on stock indices and stocks, and

deal on own account in derivative

instruments except for those based on

stocks.


horizontal section.

(D) Exchange rate and

interest rate instruments,

including products such

as swaps and forward

rate agreements

(E) Transferable securities

(F) Other negotiable

instruments and

financial assets,

including bullion

1) Unbound

2) None



trading of exchange rate and interest

rate instruments.

Only securities intermediary institutions

can provide “leveraged transactions” as

defined in Capital Market Law No.

6362 (i.e. retail forex brokerage).


horizontal section.

1) Unbound

2) None

3) Banks and securities intermediary

institutions can engage in trading of

transferable securities in compliance

with CMB legislation. However, only

securities intermediary institutions can

provide such investment services with

regard to execution of orders and

dealing on own account in shares.


horizontal section.

1) Unbound

2) None

3) Banks and related intermediary


other negotiable instruments and

financial assets, including bullion.


horizontal section.

(xi) Participation in issues of all

kinds of securities,

including underwriting and

placement as agent

(whether publicly or

privately) and provision of

services related to such

issues

1) Unbound

2) None

3) Development and Investment Banks

and securities intermediary institutions

authorised by the CMB can provide

underwriting and placement services for

the securities to be issued after being

registered by the CMB.


horizontal section.

(xii) Money broking

1) Unbound

2) None

3) None


horizontal section.

(xiii) Asset management

such as cash or portfolio

management, all forms of

collective investment

management, pension fund

management, custodial,

depository and trust services

(A) Portfolio management

(B) Collective investment

Management

(C) Pension fund management

1) Unbound

2) None

3) Development and Investment Banks,


(excluding collective investment

management) and portfolio management

companies can provide these services.


horizontal section

1) Unbound

2) None

3) Collective investment portfolios can be

managed by portfolio management

companies. Investment companies can

also manage their own portfolios.


horizontal section.

1) Unbound

2) None

3) Portfolio management companies

established in Turkey can provide these

services.


horizontal section.

(D) Custodial, depository

and trust services

1) Unbound

2) None


intermediary institutions operating in

capital market can provide custodial

services for their customers. Depository

accounts related with capital market

instruments, with the exception of

government debt instruments held in

bank portfolios, can only be kept by

Central Registry Agency.


horizontal section.

(xiv) Settlement and clearing

services for financial assets,

including securities,

derivative products, and

other negotiable

instruments

1) Unbound

2) None

3) Only Takasbank A.S. can provide

securities settlement and clearing

services.

Only the institution authorized by

Central Bank of the Republic of Turkey

can provide check clearing services.22

Payment and securities settlement

systems can only be operated by

financial institutions authorised by

Central Bank of the Republic of Turkey.

Financial institutions operating payment

and securities settlement systems are

required to be established in Turkey, in

the form of a joint-stock company.


horizontal section.

22 Cheque Law Nr. 5941, Article 8, Paragraph 1

(xv) Provision and transfer of

financial information

- Financial data processing

and [provision and transfer

of] related software by

suppliers of other financial

services

1) None

2) None

3) None


horizontal section.

1, 2, 3, 4) Mandatory localization

requirements apply. Financial service

providers are obliged to establish and

maintain their data processing centres (both

primary information systems23

and their

backups) in Turkey for the storage and

processing of data.

(xvi) Advisory, intermediation

and other auxiliary

financial services on all

the activities listed in

subparagraphs (v) through

(xv), including credit

reference and analysis,

investment and portfolio

research and advice,

advice on acquisitions and

on corporate restructuring

and strategy

1) None

2) None

3) None


horizontal section.



8. HEALTH RELATED AND

SOCIAL SERVICES

A. Hospital Services

(CPC 9311)

1) Unbound*

2) None

3) Foreigners may establish private

hospitals with the permission of

Ministry of Health. The number and type

of hospitals, medical branches in each

hospital, number of required health

personnel, bed capacity as well as

procurement of medical devices may be

limited in accordance with investment

plans based on health service needs of

residential areas.

4) Unbound

9. TOURISM AND TRAVEL

RELATED SERVICES

A. Hotels and restaurants

(CPC 641-643)

1) Unbound*

2)24

None

3) None

4) After receiving the permission of the

Ministry of Labour and Social Security,

based on the affirmative opinions of the

Ministry of Interior and the Ministry of

Culture and Tourism, the hotels and

restaurants authorized by the Ministry of

Culture and Tourism may employ foreign

personnel. But the quantity of foreign

personnel that would be employed in an

enterprise shall not exceed 10 per cent of the

total personnel. This ratio could be increased

up to 20 per cent by the approval of the

Ministry of Culture and Tourism on a case

by case basis.

NT (Art. I-4)

4) The quantity of foreign personnel to be employed by

service suppliers in this sector may be restricted to 10%

of the total personnel employed. This amount could be

increased to 20% by the approval of Ministry of

Culture and Tourism on a case by case basis.

[Law No. 2634 on the Promotion of Tourism, Art. 18]

B. Travel Agencies and Tour

Operators Services

(CPC 7471)

1) Commercial presence is required

2) None

3) None


horizontal section.

LP (Art. X.1) 1) Travel agencies organised under the laws of a

foreign government cannot organize tours originating

from Turkey to abroad.

[- Law No. 1618 on Travel Agencies and the

Association of Travel Agencies, Art.3;

- Regulation on Travel Agencies, Art. 8, 9, 20]

C. Tourist guides services (CPC

7472)

1) Unbound

2) None

3) Unbound


nationality is required for performing

tourist guides services.

NT (Art. I-4)

LP (Art. X.1)

1, 3, 4) Turkish nationality is required for performing


[Law No. 6326 on the Profession of Tourist Guides,

Art.3]

* Unbound due to the lack of technical feasibility. 24 Turkish citizens may travel abroad without any restriction. Only, they are required to pay, with certain exceptions, a TL amount equivalent up to US$ 100 to the Public

Housing Fund, for each exit. The Turkish citizens going abroad for education and health purposes, as well as the ones who are either employed or assigned to permanent official

duties in foreign countries are exempt from that payment.

10. RECREATIONAL,

CULTURAL AND

SPORTING SERVICES

A. Entertainment services

(including theatre, live

bands and circus services)

(CPC 9619)

1) None

2) None

3) None


horizontal section.

11. TRANSPORT SERVICES

A. Maritime Transport

Services (except cabotage)

(a) Passenger transportation

(CPC 7211)

(b) Freight transportation

(CPC 7212)

1) None

2) None

3) In order to fly the Turkish flag25

, the

shipping companies must have the

majority of (51 per cent) Turkish

shareholders.

4) Captain and crew of the Turkish flag

vessels should be Turkish citizens.

NT (Art. I-4)


, the shipping

companies must have the majority of (51 per cent)

Turkish shareholders.

[Turkish Commercial Code (Law no. 6102), Art. 940]

4) Turkish nationality is required for the captain and

crew of vessels flying the Turkish flag.

[Law Concerning Coastal Shipping (Cabotage) along

Turkish Shores and Performance of Trade and

Business in Turkish Ports and Territorial Waters”

(Law No: 815)]

(c) Rental of vessels with

crew26

(CPC 7213)

1) None

2) None

3) None


horizontal section.

NT (Art. I-4) 4) Turkish nationality is required for the captain

and crew of vessels flying the Turkish flag.




(Law No: 815)]

25 In accordance with the Turkish Commercial Code:

- Each Turkish ship shall fly the Turkish flag.

- When ownership of a ship belongs to a natural person, the ship shall be regarded as a Turkish ship only if it is owned by a Turkish citizen.

- A ship that belongs to more than one natural person shall be regarded as a Turkish ship either if the majority shares are held by Turkish citizens in case of joint ownership/condominium-

principled ownership (“paylı mülkiyet”); or if the majority of the owners are Turkish citizens in case of co-ownership (“elbirliğiyle mülkiyet”).

- A ship that belongs to an institution, association and/or foundation with legal personality and established in accordance with Turkish legislation shall be deemed as a Turkish ship on the

condition that the majority of Board of Directors of such juridical persons are of Turkish nationality.

- A ship that belongs to a commercial company that is established in accordance with Turkish legislation shall be regarded as a Turkish ship on the condition that the majority of the personnel

having managerial authority are Turkish nationals; and, the majority voting rights belong to Turkish national shareholders in accordance with the articles of incorporation. In the case of a

joint-stock company (“anonim şirket”) or a partnership limited by shares (“sermayesi paylara bölünmüş komandit şirket”), in addition to the above mentioned conditions, majority of the

shares are required to be registered shares and that transfer of these shares to a foreign person must be subject to the approval of Board of Directors.

- Ships belonging to an association of ship-owners (“donatma iştiraki”) shall be deemed as Turkish ships, on the condition that the majority of shares belong to Turkish nationals, and that

majority of the ship-owners with managerial authority are also Turkish nationals.

(d) Maintenance and repair of

vessels (CPC 8868**)

1) None

2) None

3) None


horizontal section.

B. Internal Waterways

Transport (CPC 722)

1,3) Establishment is required. Only Turkish

nationals and the juridical persons shares of

which belong to Turkish nationals can

supply these services.

2) None

4) Captain and crew members have to be

Turkish nationals.

NT (Art. I-4)

LP (Art. X.1)

1,3) Establishment is required. Only Turkish nationals

and the juridical persons shares of which belong to

Turkish nationals can supply these services.

4) Captain and crew members have to be Turkish

nationals.

[-Turkish Commercial Code, Law no. 6102]

- Law Concerning Coastal Shipping (Cabotage) along



(Law No: 815)]

26

This commitment does not include or confer any right with regard to maritime transportation services.

Maritime Auxiliary Services as

defined in the Annex for

Maritime Transport Services

i) Maritime Cargo Handling

Services

1) Establishment is required.

2)None

3) For juridical persons:

Maritime cargo handling services can be

supplied by port (terminal) operators who

are granted a concession through port

privatization procedures. Privatization of

ports through transfer of ownership is not

allowed. The number of service suppliers to

participate in the privatization tenders and

the type of legal entity could be limited by

the Turkish Privatization Administration.

Considering the nature of the service,

monopoly rights may be accorded to port

operators in the privatization process.

Other than port (terminal) operators who are

granted a concession through privatization,

these services can only be supplied by

juridical persons shares of which belong to

the Turkish nationals.

For natural persons: Turkish nationality is

required.

4) Unbound.

NT (Art. I-4)

LP (Art. X.1)

1) Establishment is required

3) Other than port operators who are granted a

concession through privatization procedure, these

services can only be supplied by juridical persons

shares of which belong to the Turkish nationals.

For natural persons: Turkish nationality is required.

[- Law No . 4046, Adopted on 27 November 1994,

Concerning Arrangements For The Implementation Of

Privatization (Article 37)




(Law No: 815) (Article 3)]

ii) Storage and Warehousing

Services

iii) Customs Clearance Services

iv) Container Station and Depot

Services

v) Maritime Agency Services


2) None

3) None except for “customs warehouses”.

Customs warehouses can only be established

by a “joint stock” or a “limited liability”

company founded in accordance with the

Turkish Commercial Code, which has been

in operation for at least two years. Economic

need test applies.


horizontal section.


1,3 ,4) For natural persons: Customs brokers

must be Turkish citizens.

For juridical persons: All the stakeholders of

a customs brokerage company must be

licensed customs brokers who are Turkish

citizens.

1) Unbound*

2,3) None


horizontal section.


3,4) Only Turkish citizens can be appointed

or employed as authorized agents and

maritime agency personnel.

3) Maritime agency companies are obliged

to appoint an “authorized agent27

” and

employ at least one “maritime agency

personnel28

” at the agency and its branches.

LP (Art. X.1)

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)

NT (Art. I-4)

LP (Art. X.1)


[Customs Regulation ( Articles 512-519)]

3 ,4) For natural persons: Customs brokers must be

Turkish citizens.

For juridical persons: All the stakeholders of a customs

brokerage company must be licensed customs brokers

who are Turkish citizens.

[Customs Regulation (Articles 227 and 229)]


3,4) Only Turkish citizens can be appointed or

employed as authorized agents and maritime agency

personnel.

3) Maritime agency companies are obliged to appoint

an “authorized agent29

” and employ at least one

“maritime agency personnel30

” at the agency and its

branches.

[Regulation on Maritime Agencies (Article 7)]

27 “Authorized agent” is the natural person who is authorized to act on behalf of the Maritime Agency Company before the Ministry of Transport, Maritime Affairs and Communications. 28 “Maritime agency personnel” are natural persons who are issued an identification card by the Ministry of Transport, Maritime Affairs and Communications to perform agency operations with

the port, customs, coastal, health and security authorities and other relevant institutions and organizations. 29 “Authorized agent” is the natural person who is authorized to act on behalf of the Maritime Agency Company before the Ministry of Transport, Maritime Affairs and Communications.

vi) Maritime Freight

Forwarding Services

Services at the Port (towing and

the tug assistance; port captain's

services; navigation aids;

emergency repair facilities;

anchorage, berth and berthing,

dredging services.)

Services at the port

(provisioning, fuelling and

watering; garbage collecting

and ballast waste disposal;

shore-based operational

services essential to ship

operations including

communications, water and

electrical supplies)

1) None

2) None

3) None


horizontal section.


2) None

3) Only Turkish nationals and juridical

persons shares of which belong to Turkish

nationals can supply these services


horizontal section.

1,3) These services can be supplied by port

(terminal) operators who are granted a

concession through port privatization

procedures. Privatization of ports through

transfer of ownership is not allowed. The

number of service suppliers to participate in

the privatization tenders and the type of

legal entity could be limited by the Turkish

Privatization Administration.









2) None

4) Unbound.

NT (Art. I-4)

LP (Art. X.1)

NT (Art. I-4)

LP (Art. X.1)


1,3) Only Turkish nationals and juridical persons

shares of which belong to Turkish nationals can

supply





1,3) Other than port (terminal) operators who are

granted a concession through privatization, these










30 “Maritime agency personnel” are natural persons who are issued an identification card by the Ministry of Transport, Maritime Affairs and Communications to perform agency operations with

the port, customs, coastal, health and security authorities and other relevant institutions and organizations.

C. Air Transport Services

(a) Selling of air transport

services

(b) Computer reservation

systems

(c) Maintenance and repair of

aircraft (CPC 8868**)

1) None

2) None

3) None


horizontal section.

1) None

2) None

3) None


horizontal section.

1) None

2) None

3) Authorization from the Ministry of

Transport, Maritime Affairs and

Communications is necessary to

perform functions for the maintenance

and repair of aircraft.


horizontal section.

(d) Ground-handling services

1) Unbound*

2) None



Communications (a Type-A or a Type-C

License) is necessary to perform ground-

handling services to airline operators on

a fee or contract basis. Authorizations

are provided only to commercial

companies established in accordance

with the Turkish Commercial Code.

Type-A license can be obtained by

ground-handling companies or by

domestic airline operators to provide

ground-handling services to other airline

operators. Foreign airline operators

cannot provide ground-handling services

to other airline operators.

For a company to obtain a Type-A or a

Type-C license to provide ground-

handling services, a) the majority of the

persons authorized for the administration

and representation of the company must

be Turkish nationals; b) according to the

Articles of Association, Turkish

shareholders should hold the majority of

the voting rights.

Passenger handling, ramp handling, and

load-control and communication

services can only be provided by a

ground-handling company with a Type-

A license.

Catering services can only be provided

by ground-handling companies operating

within the airport, companies with a

catering service provision license, and

domestic airline operators. Foreign

airline operators cannot provide these

services.

(cont’d on next page)

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)


3) For a company to provide ground-handling services:

a) the majority of the persons authorized for the

administration and representation of the company must

be Turkish nationals;

b) according to the Articles of Association, Turkish

shareholders should hold the majority of the voting

rights.

Foreign airline operators cannot provide ground-

handling services to other airline operators.

Foreign airline operators cannot provide catering

services.

4) The majority of the persons authorized for the

administration and representation of a ground-handling

company must be Turkish nationals.

[ - Turkish Civil Aviation Law (No. 2920)

- Civil Aviation Regulation No. 22 on Ground-handling

Services (SHY-22)]

Operation licenses may be limited in

number. In issuing an operation license,

criteria such as: runway, apron, taxiway

areas of the airport; air traffic capacity of

the airport; availability of parking and

workshop areas in the airport; existing

physical conditions of the airport and

forecasts on future market conditions;

and additional capacity needs are taken

into account.

4) The majority of the persons authorized

for the administration and representation

of a ground-handling company must be

Turkish nationals. Otherwise, unbound


section.

(e) Airport operation services

1) Unbound*

2) None

3) Airport operation services could be

provided through transfer of operational

rights of the state airports by leasing

(including built and transferred by

private sector entities through Built-

Operate-Transfer Model).

Transfer of operational rights by leasing

is rendered by the General Directorate of

State Airports Authority through tender

for a period of maximum 49 years.

Transferring of operation rights by

leasing is subject to the authorization by

the Ministry of Transport, Maritime

Affairs and Communications


horizontal section.

E. Rail Transport Services


(only interurban passenger

transportation-CPC 71111)


(CPC 7112)

1) Unbound

2) None

3) Establishment as a commercial

company in accordance with the

Turkish Commercial Code is required

for obtaining authorization.


horizontal section.

LP (Art. X.1)

1) Establishment as a commercial company in

accordance with the Turkish Commercial Code is

required.

[Regulation on the Authorization of Railway

Operators, published on the Official Gazette dated

19.08.2016, no 29806]

F. Road Transport Services


(CPC 7121 + 7122)


(CPC 7123)

(c) Rental of commercial

vehicles with operator (CPC

7124)


road transport equipment

(CPC 6112+8867)

(e) Supporting services for road

transport services (CPC 744)

1) Unbound

2) None

3) Turkish nationality or being a legal

entity established under the relevant

Turkish laws are required for obtaining a

carrier licence.


horizontal section.

1) Unbound

2) None

3) None


commercial section.

1) None

2) None

3) None


horizontal section.


2) None

3) For natural persons: Turkish nationality

is required.

For juridical persons: Unbound

4) Unbound

NT (Art. I-4)

NT (Art. I-4)

LP (Art. X.1)

3) Turkish nationality is required for natural persons to

obtain a carrier license.

[- Law no. 4925 on Road Transportation

- Regulation on Road Transport, Art. 12]


3) For natural persons: Turkish nationality is required.

[Regulation on Road Transport, Art.12]

H. Services auxiliary to all

modes of transport

excluding maritime

auxiliary services

Cargo-handling services

(CPC 741), Storage and

warehouse services (CPC

742),Freight transport

agency services (CPC 748),

other services auxiliary to all

modes of transport (CPC

749)

Customs Clearance Services


2) None


is required.


horizontal section.



For juridical persons: All the

stakeholders of a customs brokerage

company must be licensed customs

brokers who are Turkish citizens.

2) None

NT (Art. I-4)

LP (Art.X.1)

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)

1)Establishment is required

3) For natural persons: Turkish nationality is required


1,3 ,4) For natural persons: Customs brokers must be

Turkish citizens.





TURKEY –LIST OF MFN EXEMPTIONS

Sector or Sub sector

Description of measure

indicating its inconsistency with

Article IV.4

Countries to which the measure

applies Intended duration

Conditions creating the need for

the exemption

ALL SECTORS Turkey reserves the right to accord

differential treatment to any Party

or non-Party under any

international agreement signed

before or after the entry into force

of this Agreement and notified to

the World Trade Organization

(WTO) under Article V or Article

Vbis of the GATS.

All countries with which

agreements are or will be in

force.

Indefinite Desire to create favourable

conditions for greater economic

cooperation between Turkey

and its trading partners.

ALL SECTORS (a) Extending full national

treatment for the investments

of the nationals or companies

of countries with which a

Bilateral Investment Treaty

is concluded.

(b)(i) Executing the transfers, in

specific periods, of the

nationals and companies of

certain countries which made

investments in Turkey.



force.

Belgium-Luxembourg,

Kuwait


conditions for a greater

economic cooperation between

Turkey and mentioned

countries and to encourage

investments by nationals and

companies of one country in the

territory of the other countries.

(ii) Granting foreign exchange

risk guarantee for certain

countries for the transfers

which are not realized due to

the difficulties in balance of

payments.

(c) Covering "trade risk" in

subrogation for one country.

Japan




Article IV.4




the exemption

(d) The agreements with three

countries, the MFN Articles

of which do not include the

derogation paragraphs

relating to the privileges

which are accorded to the

investors of the third

countries resulting from its

membership in or associated

with a free trade zone, an

economic cooperation, a

customs union or a common

market.

Japan, Bangladesh, Germany

ALL SECTORS

The restriction in the transfer

of the premiums for long-

term insurance schemes and

the employment of the

foreign country workers by

foreign companies is waived

for one country.

Libya

Indefinite

To ensure social security and

continuous employment of

Turkish workers in the

mentioned country.

ALL SECTORS

If the amount of the

consulate duties collected

from the Turkish nationals

by any country is higher than

the amounts written in the

tariff list, the amounts of

consulate duties which are

collected from the nationals

of that country will be

increased reciprocally.

All countries

Indefinite

Desire to ensure equal treatment

to Turkish nationals.

ALL SECTORS

On the condition that the

legal requirements are

observed and with the

condition of reciprocity, the

foreign real persons may

own real estate in Turkey by

acquisition or by inheritance.

All countries

Indefinite

To secure the right of Turkish

nationals to acquire real estates

in a foreign country.




Article IV.4




the exemption

Professional

Services

If any foreign country lays

down legal and

administrative conditions

against Turkish citizens for

performing arts and

supplying services, the

similar activities of the

citizens of that country may

be prohibited in Turkey.

All countries

Indefinite

Desire to create favourable

circumstances for Turkish

citizens to perform their

activities under equal

conditions in the other

countries.

Transportation

Services

The income and corporate

tax rates for the foreign road,

maritime and air transport

companies can reciprocally

be decreased down to zero or

increased to a new rate not

exceeding one fold of the

existing rate can be

determined, as a country by

country basis either for each

transportation mode or for all

modes of transportation.

All countries

Indefinite

Desire to facilitate and to lower

the costs of transportation

services between Turkey and

other countries.

Transportation

Services

Transit or bilateral

transportation services, can

be excluded from VAT.

This exception is granted,

with the condition of

reciprocity, to the related

countries' taxpayers who do

not have residence or their

legal and business centre in

Turkey.

All countries

Indefinite

Desire to lower costs and to

create favourable conditions for

the provision of services in this

sector.




Article IV.4




the exemption

Transportation

Services

To apply, on the basis of

reciprocity, restrictions,

prohibitions, different

treatment and different tariffs

to the goods and

transportation vehicles of the

countries which apply

restrictions, prohibitions and

different treatment to the

Turkish road, air and

maritime transportation

vehicles.

All countries

Indefinite

Desire to secure the smooth

functioning of mutual

transportation services.

Maritime Auxiliary

Services and

Services at the Port

To adopt or maintain any

measure that accords

differential treatment to

persons of other countries

due to application of

reciprocity.

All countries Indefinite



Road Transport

Services

To grant, through

international road transport

agreements, and on the basis

of reciprocity, privileges

regarding quotas and fees, or

exemptions from the

permission procedures.



force.

Indefinite

Desire to facilitate road

transport services between

Turkey and other countries.

Rail Transport

Services

The bilateral reduction in the

renting fees of railway

wagons of countries

mentioned aside (paragraph

a) and the application of

national treatment to tariff

rates on the reciprocal

transportation of goods with

the countries mentioned

aside (paragraph b).

a) Syria, Iraq, Iran, Lebanon

b) Commonwealth of

Independent States and the

Baltic Republics.

Indefinite

Desire to facilitate rail transport


other countries.




Article IV.4




the exemption

Accounting,

Auditing and Book-

keeping Services

In order to perform the

services under the title of

"financial advisor", the

nationals of the countries

which have officially

codified the principles for

the profession of financial

advisory may be authorized,

under reciprocal conditions,

provided that these persons

should have the

qualifications required for


advisory in Turkey and

should have rights to

perform similar services in

their own countries.



conditions for Turkish financial

advisors to perform their jobs

under equal conditions all over

the world.

TRADE IN SERVICES AGREEMENT (TISA)

TURKEY

SECOND REVISED CONDITIONAL OFFER

1. This document contains the second revised conditional offer of Turkey in TISA negotiations. Included in this offer is are the Schedule of Specific

Commitments and the List of MFN Exemptions. The offer is conditional on securing improved commitments from TISA Parties in areas of interest to

Turkey, as well as attaining a meaningful and balanced outcome in the overall negotiations, including in the area of new and enhanced disciplines.

2. Turkey reserves the right to modify or withdraw this conditional offer, in whole or in part, at any time prior to the conclusion of negotiations. Turkey

further reserves the right to make technical changes to the Schedule to correct errors, omissions or inaccuracies.

2. This offer does not include any commitments or exemptions on Most Favoured Nation Treatment. The MFN Exemptions List will be supplemented to

this offer following the stabilization of the MFN Article.

3. This offer is prepared on the basis of the TISA Core Text as of 3 November 2015; further changes may be introduced to this Schedule as scheduling

related elements in the proposed new and enhanced disciplines are stabilized.

EXPLANATORY NOTES

1. Legal citations in Part I-Section B and Part II of this Schedule identify, for transparency purposes, existing measures inconsistent with the obligations on:

- National Treatment [NT] – (Article I-4 of the Core Text);

- Local Presence [LP] - (Article X.1 of the Annex on Localisation);

- Local Management and Board of Directors [LMBD] - (Article X.2 of the Annex on Localisation);

- Local Content and Other Performance Requirements [PR] - (Article X.3 of the Annex on Localisation);

- Senior Management and Board of Directors [SMBD] - (Article X.13of the Annex on Financial Services)

that apply to the entirety of the sector referred to in the entry, and are not limited to the scope of corresponding MA commitments. The measures stipulated

therein are not exhaustive; they cover the measure as amended, continued, or renewed as of the date of entry into force of this Agreement; and include any

subordinate measure adopted or maintained under the authority of and consistent with the measure.

For greater certainty, measures inconsistent with the obligations on:

- Movement of Information - (Article 2 of the Annex on Electronic Commerce);

- Location of Computing Facilities - (Article 8 of the Annex on Electronic Commerce);

- Transfer of Information - (Article 10 of the Annex on Financial Services); and/or

- Location of Computing Facilities - (Article 10bis of the Annex on Financial Services)

are inscribed against National Treatment obligation of the Core Text.

2. In identifying individual sectors and sub-sectors, where specified, CPC means the Central Product Classification as set out in Statistical Office of the



43. Turkey retains the right to exercise its powers and to regulate and introduce new regulations in order to meet national public policy objectives, which

include but are not limited to the policy objectives regarding security, public health, environment, personal data protection, consumer protection, prevention

of anti-competitive practices, and sustainable development.

In this respect, this Schedule does not include measures relating to qualification requirements and procedures, technical standards and licensing

requirements and procedures when they do not constitute a market access or a national treatment limitation within the meaning of Articles I-3 and I-4. Those

measures (e.g. need to obtain a license, universal service obligations, need to obtain recognition of qualifications in regulated sectors, and need to pass

specific examinations, including language examinations, and non-discriminatory requirements that certain activities may not be carried out in nature

protection zones, archaeological sites, or areas of particular historic, cultural and artistic value), even if not listed, apply in any case to services and service

suppliers of TISA Parties.

4. Nothing in this Schedule shall be construed to prejudice the enforcement of any measure under the foreign trade regime and related customs procedures of

Turkey with regard to goods, in compliance with international agreements Turkey is a party to. In this respect, with regard to service sectors, sub-sectors or

activities where importation and/or exportation of goods might be an integral part of the supply of services, such as distribution services, maintenance and

repair services, technical testing and analysis services, any relevant foreign trade and/or customs measure shall continue to apply, even if not listed, to

services and services suppliers of TiSA Parties.

5. In identifying individual sectors and sub sectors, where specified, CPC means the Central Product Classification as set out in Statistical Office of the



6. Turkey reserves the right to modify or withdraw its conditional offer and any subsequent conditional offer that might follow, in whole or in part, at any

time prior to the conclusion of negotiations. Turkey further reserves the right to make technical changes to the Schedule to correct errors, omissions or

inaccuracies.

75. The rights and obligations arising from this Agreement, including the schedule of commitments, shall have no self-executing effect and thus confer no

rights directly on individual natural or juridical persons.

8. Turkey reserves the right to introduce any necessary changes to this Schedule following the development of common Scheduling Guidelines for the

hybrid listing approach.

TURKEY - SCHEDULE OF SPECIFIC COMMITMENTS

Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons

PART I: HORIZONTAL COMMITMENTS - SECTION A

Turkey undertakes its specific commitments in accordance with Part II of the Agreement.

Sector or Sub-sector Mode Obligations Concerned Conditions, Limitations and Reservations

All sectors: Social services All

NT (Article I-4)

LP (Art. X.1)

LMBD (Art. X.2)

PR (Art. X.3)

SMBD (Article X.13)

Turkey reserves the right to adopt or maintain any measure affecting the provision of public

law enforcement and correctional services and, to the extent they are social services

established or maintained for a public purpose, the provision of following services: income

security or insurance, social security or insurance, social welfare, public education, public

training, public utilities, public transport, public housing, health, child care, ambulance

services and firefighting.

All sectors: Disadvantaged

groups 3,4

NT (Article I-4)

LP (Art. X.1)

LMBD (Art. X.2)

PR (Art. X.3)

SMBD (Article X.13)

Turkey reserves the right to adopt or maintain any measure that accords rights or preferences

to socially or economically disadvantaged groups, such as disabled persons and persons who

have rendered distinguished services to the state.

All sectors: Commercial

presence 3

NT (Art. I-4)

LMBD (Art X.2)

Turkey does not assume any commitment on reserves the right to adopt or maintain any

measure affecting the constitution of foundations, trusts, associations, or any other non-profit

organization in its territory by foreign natural or juridical persons. Turkey further reserves

the right to maintain, modify or adopt any measure affecting the supply of services by

individuals on a self employed basis.

All sectors: Real estate

acquisition 1, 3, 4

NT (Art. I-4)

Turkey reserves the right to adopt or maintain any measure regulate, modify or limit the

conditions of or to partially or fully withdraw or ban therelating to the conditions of

acquisition of land and real estate by foreign natural persons; or juridical persons which are

organized under the laws of a foreign government; or foreign invested companies in its

territory, where the acquisition of real estate is for purposes unrelated to the conduct of

business activities listed in the articles of association of their company have their

headquarters abroad and have no commercial presence in Turkey, in line with national

interests.

Turkey further reserves the right to regulate, modify or limit the conditions of or to partially

or fully withdraw or ban the real estate acquisition of foreign invested commercial

companies in its territory, where the acquisition of real estate is for purposes unrelated to the

conduct of business activities listed in the articles of association of their company.

All sectors: Subsidies

All sectors: Subsidies All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art X.2)

SMBD (Art. X.13)

With regard to service supply through modes 1, 2 and 4, Turkey reserves the right to adopt or

maintain, modify or adopt any measure with regardrelating to subsidies, or any conditions

attached to the receipt or continued receipt of such subsidies, whether or not such subsidies

are offered exclusively to domestic services, service consumers or service suppliers.

With regard to service supply through mode 3, Turkey reserves the right to adopt or

maintain, modify or adopt any measure which is not inconsistent with its commitments under

the GATS with respect to subsidies. In this regard, Turkey may restrict the eligibility for

subsidies to Turkish nationals and or juridical persons established within a particular

geographical subdivision of its territory.

Monopolies and public

utilities 1, 3 National Treatment (Art. I 4)

Turkey reserves the right to maintain public monopolies in postal services; railway

transportation and infrastructure; lotteries in cash, and football pools.

Turkey also reserves the right to subject economic activities considered as public utilities at

the national or local level to public monopolies or to exclusive rights granted to private

operators. Public utilities include such service activities as the distribution of energy and

water, and other activities considered as public services.

Privatization 3

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art X.2)

SMBD (Art. X.13)

Turkey reserves the right to adopt, or maintain or modify any measure affecting the:

- transfer or disposition of equity interests or assets held by state enterprises or governmental

authorities;

- delegation to private sector the authority to supply services that are provided in the exercise

of governmental authority at the time of entry into force of the Agreement.

Services supplied in the

exercise of governmental

authority

1, 3, 4 National Treatment (Art. I 4)

In addition, Turkey may adopt any measure regarding the provision of a service by private

entities which, at the time of entry into force of this Agreement, is provided in the exercise of

governmental authority.

All sectors, except

financial services:

Government procurement

All National Treatment (Art. I 4)

Turkey reserves the right to maintain, modify or adopt any measure affecting or governing

the procurement by governmental agencies of services purchased for governmental purposes

and not with a view to commercial resale or with a view to use in the supply of services for

commercial sale. For financial services, Turkey’s commitments under Article X.6 (Financial

Services purchased by Public Entities) of the Annex on Financial Services apply.

All sectors: Supply of

services by the presence of

natural persons

4

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art X.2)

SMBD (Art. X.13)

Turkey reserves the right to adopt, modify or maintain any measure affecting the supply of

services though presence of natural persons in its territory, without prejudice to the

provisions of Annex on Movement of Natural Persons. However, Turkey shall comply with

National Treatment (Art. I-4), Local Presence (Art X.1), Local Management and Board of

Directors (Art. X.3) and Senior Management and Board of Directors (Art. X.13) obligations

concerning the entry and temporary stay of natural persons in its territory for sectors where

MA commitments are undertaken on Mode 4 in Part I-Section B, unless conditions,

limitations or reservations are inscribed against these obligations in Part I-Section B or Part

II. entry and temporary stay of natural person categories not indicated in the Horizontal MA

Limitations section on Mode 4 in this schedule.

In addition, Turkey reserves the right to adopt, modify or maintain any measure affecting the

entry and temporary stay of intra corporate transferees, trainees, business visitors and

business service sellers in economic activities which are not liberalised pursuant to Article [I

3] (Market Access).

Turkey’s commitments on intra corporate transferees, trainees, business visitors and business

service sellers do not apply in cases where the intent or effect of their temporary stay is to

interfere with, or otherwise affect the outcome of, any labour/management dispute or

negotiation.

The professional services which are assigned only to Turkish citizens by specific laws cannot

be rendered by foreigners either as service providers or as the personnel of service providers.

On the other hand foreign citizens with Turkish origin may work in professions which are

assigned only to Turkish citizens with the permission obtained from the Ministry of Labour

and Social Security.

Legal services, other than

advisory services on

foreign and international

law (CPC 861**)



provision of legal services, other than advisory services on foreign and international law

(CPC 861**).

For further clarity, Turkish nationality is required for the provision of legal services by

notaries; lawyers providing legal representation, advisory and documentation services on

domestic law; arbitrators, conciliators, and other legal professionals entrusted with public

functions. Legal professionals of Turkish nationality hired by foreign law partnerships

cannot provide legal services, other than advisory services on foreign and international law

(CPC 861**).

Accounting, auditing and

bookkeeping services

(CPC 862).

1 National Treatment (Art. I 4) Turkey reserves the right to maintain, modify or adopt any measure with respect to the

provision of accounting, auditing and bookkeeping services (CPC 862).

Taxation services (CPC

863) except for business

tax planning and

consulting services (CPC

86301).



provision of taxation services (CPC 863) except for business tax planning and consulting

services (CPC 86301).

Urban planning and


services (CPC 8674).

All National Treatment (Art. I 4) Turkey reserves the right to maintain, modify or adopt any measure with respect to the

provision of urban planning and landscape architecture services (CPC 8674).

Medical and dental

services (CPC 9312); and,

services provided by

midwives, nurses,

physiotherapists and para-


93191).

All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art X.2)

Turkey reserves the right to adopt or maintain, modify or adopt any measure with respect to

the provision of medical and dental services (CPC 9312); and, services provided by

midwives, nurses, physiotherapists and para-medical personnel (CPC 93191).

Veterinary services 1,3,4 National Treatment (Art. I 4)


provision of veterinary services (CPC 932) except for the provision of veterinary services

through the establishment of animal hospitals in its territory subject to limitations and

conditions stated in Part II of this Schedule.

Any other professional

service not included

elsewhere in the CPC

prov. 1991.


1,2,3,4) Turkey reserves the right to maintain, modify or adopt any measure with respect to

the provision of any other professional service not included elsewhere in the CPC prov.

1991.

Computer and related

services All National Treatment (Art. I 4)


provision of data base services, including data storage, data hosting and web hosting services

(CPC 844);and other computer services except for “training services for staff of clients”

falling under CPC 8499, but including data preparation services (CPC 849*).

Computer and related

services 1, 2 National Treatment (Art. I 4)


provision of maintenance and repair services of office machinery and equipment including

computers (CPC 845).

Research and development

services All

NT (Art. I-4)

LP (Art. X.1)

PR (Art. X.3)


the provision of R&D services financed in whole or in part by public funds; as well as, R&D

services on biology (85102**) and agricultural sciences (85104), social sciences and

humanities (CPC 852) and interdisciplinary R&D services (CPC 853).

Real estate services All1,3,4 NT (Art. I-4)

LP (Art. X.1)


provision of real estate services involving own or leased property (CPC 821); and real estate

services on a fee or contract basis (CPC 822).

Leasing and Rental

Services Without Operator 1 National Treatment (Art. I 4)


provision of leasing and rental services concerning machinery and equipment without

operator (CPC 831); and, leasing and rental services concerning personal and household

goods (CPC (832).

Technical testing and

analysis services

All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art X.2)

Turkey reserves the right to adopt or maintain, modify or adopt any measure affecting the

supply of technical testing and analysis services (CPC 8676), except for the supply of

servicessub-sectors where MA commitments are undertaken in Part II. in its territory through

commercial presence, in the following sub sectors:

Inspection, testing and analysis services of air, water, noise level and vibration level

(CPC 86761 part of)

Testing and analysis services of physical properties (CPC 86762)

Testing and analysis services of integrated mechanical and electrical components (CPC

86763): Turkey reserves its right to apply economic needs tests.

Technical inspection services (CPC 86764)

Notwithstanding the above, Turkey reserves the right to adopt or maintain any measure

affecting the supply of technical testing and analysis services relating to the construction

sector, including measures affecting construction and building control activities performed to

ensure that the whole construction process, as well as the construction materials used as

inputs in the construction, are in conformity with the technical specifications and standards

specified by relevant laws and regulations.

Maintenance and repair of

equipment (CPC

633+8861 8866).

1, 2 National Treatment (Art. I 4)

Turkey reserves the right to maintain, modify or adopt any measure affecting the supply of

maintenance and repair of equipment (not including maritime vessels, aircraft or other

transport equipment) (CPC 633+8861 8866).

Convention services 1 National Treatment (Art. I 4) Turkey reserves the right to adopt or maintain commercial presence requirement for the

provision of convention services (CPC 87909**)

Other business services All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)


the provision of:

- Public opinion polling services (CPC 864*)

Arbitration and conciliation services (CPC 86602)

- Services incidental to agriculture (CPC 881*)

- Services incidental to forestry (CPC 881*)

- Services incidental to fishing (CPC 882)

Services incidental to manufacturing (CPC 884+885 except for 88442)

- Services incidental to energy distribution (CPC 887)

- Placement and supply services of personnel (CPC 872)

Investigation and security services (CPC 873)

- Related scientific and technical consulting services (CPC 8675)

- Specialty photography services (CPC 87504)

- Publishing services of newspapers, magazines and publications of news agencies (CPC

88442**)

- Sworn/certified translation services (CPC 87905**)

Other business services not included elsewhere (CPC 8790), except for convention services

(87909**) and translation and interpretation services other than sworn/certified translation

services (87905**).

Postal Services (CPC

7511)


Turkey reserves the right to maintain a public monopoly in the postal sector; and further

reserves the right to adopt, maintain or modify any measure constituting a limitation on the

number of service suppliers in the sector, whether in the form of numerical quotas,

monopolies, exclusive service suppliers or the requirements of an economic needs test.

Postal Services (CPC

7511) 4 National Treatment (Art. I 4)


provision of postal services (CPC 7511).

Audio-visual services:

Broadcasting

All NT (Art. I-4)

Turkey reserves the right to adopt or maintain any measure affecting the supply of

broadcasting services into and within its territory. For the purposes of this Schedule,

broadcasting covers the transmission of signs or signals via any technology for the reception

and/or display of aural and/or visual programme signals by all or part of the general public.

Distribution services All NT (Art. I-4)

LP (Art. X.1)


the provision of distribution services.

This reservation does not apply to retailing services, including through franchising, where

MA commitments are undertaken in Part II.to the extent that these are supplied through

modes 2, 3 and 4 in the following sectors:

Food retailing services (CPC 631);

Non food retailing services (CPC 632);

Retail sales of motor vehicles (CPC 61112);

Retailing services of parts and accessories of motor vehicles (CPC 61130**); and

Retailing services of motorcycles and snowmobiles and related parts and accessories

(CPC 61210**);

but excluding the following sub sectors:

Retail sales of alcoholic beverages not consumed on the spot (CPC 63107**);

Retail sales of tobacco products CPC 63108);

Retail sales of pharmaceutical goods (CPC 63211);

Retail sales of optical goods (CPC 63254**),

Retail sales of seeds, fertilizers, pesticides and preparations of a kind used in animal

feeding (63295**);

Retail sales of coal and wood (CPC 63297);

Retail sales of Instruments and appliances for measuring electricity, gas and liquid

(CPC 482**); and

Retail sales of taximeters.

In addition, Turkey reserves the right to adopt, maintain or modify any measure affecting the

supply of any product subject to import prohibition or non automatic import licensing.

Educational services: adult

education All National Treatment (Art. I 4)


provision of adult education services (CPC 924).

Educational services:

higher education 3, 4 National Treatment (Art. I 4)

With respect to provision of higher education services (CPC 923), Turkey reserves the right

to maintain the limitation that private universities [“non profit foundation higher education

institutions (vakıf yükseköğretim kurumları)”] be established only by foundations constituted

under Turkish Civil Code, and through the enactment of a specific Law.

Environmental services 1 National Treatment (Art. I 4)

LP (Art. X.1)


the provision of environmental services. sewage services (CPC 9401); refuse disposal

services (CPC 9402); sanitation and similar services (CPC 9403); cleaning services of

exhaust gases (CPC 9404); and noise abatement services (CPC 9405).

Environmental services All National Treatment (Art. I 4)


provision of nature and landscape protection services (CPC 9406); and any other

environmental service not included elsewhere (CPC 9409).

Financial Services:


related services


Turkey reserves the right to limit the eligibility for tax benefits provided to employers and

wage earners by way of deduction of a certain percentage of life insurance premiums from

gross income, so as to ensure that tax benefits would be provided only when the life

insurance policies are concluded with the insurance companies or branches of foreign

insurance companies established in Turkey.

Financial Services:


related services

1, 2 NT (Art. I-4)

LP (Art. X.1)


the provision of non-life insurance services, except for:

(a) The hull insurance of aircrafts, helicopters and ships which are purchased through a

foreign loan or leased through a financial leasing contract from abroad, provided that the

insurance period is limited to the term of the credit or leasing contract;


(c) Transportation insurance of imported and exported goods;

(d) Personal injury, sickness, health and motor vehicle insurance, limited to the time during

which people will be abroad or temporarily staying abroad,

(e) Insurance of ships and yachts registered with the Turkish International Maritime

Registry.

Financial Services:


related services

1, 2, 4 NT (Art. I-4)

LP (Art. X.1)


the provision, by adjusters and actuaries, of services auxiliary to insurance, such as

consultancy, actuarial, risk assessment and claim services.

Banking and other


insurance)

1 NT (Art. I-4)

LP (Art. X.1)


the provision of banking and other financial services (excl. insurance) except for the

provision and transfer of financial information; and, advisory and other auxiliary financial

services on all the activities listed in Article X.2(a)(v)-(xv) of Annex on Financial Services

(Definitions).

Banking and other


insurance)

3 National Treatment (Art. I 4)

With respect to banking, Turkey reserves the right to maintain the requirement that lending

limits for the branches of foreign banks be based on branch capital rather than worldwide

capital.

Banking and other


insurance)

3 National Treatment (Art. I 4)

With regard to the securities market, Turkey reserves the right to maintain, modify or adopt

any measure with respect to the establishment of branches and representative (liaison) offices

of foreign securities intermediary institutions.

Banking and other


insurance)


With respect to data processing and [provision and transfer of] related software by suppliers

of other financial services mandatory localization requirements apply. In this regard, Turkey

reserves the right to maintain the obligation that financial service suppliers establish and

maintain their data processing centres (both primary information systems1 and their backups)

in Turkey for the storage and processing of data.

Health related and social

Services: hospital services

1, 4 National Treatment (Art. I 4) Turkey reserves the right to maintain, modify or adopt any measure with respect to the

provision of hospital services (CPC 9311).

Health related and social

Services All National Treatment (Art. I 4)


provision of other human health services (CPC 9319 other than 93191); social services (CPC

933); and any other health related and social service not included elsewhere.

Tourism and travel related

services 1, 3, 4 National Treatment (Art. I 4)


provision of tourist guides services (CPC 7472). For further clarity, nationality requirement

applies for the tourist guides.

Recreational, cultural and

sporting services

All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)

PR (Art. X.3)


the provision of recreational, cultural and sporting services (other than audio-visual

services), including entertainment services (including theatre, live bands and circus services)

(CPC 9619); news agency services (CPC 962); libraries, archives, museums, and other

cultural services (CPC 963); sporting and other recreational services (CPC 964); and any

other recreational, cultural and sporting service not included elsewhere.

1 Information systems are comprised of infrastructure, hardware, software and data which ensure the execution of financial active ities as well as the recording and use of information in electronic


Maritime transport:

cabotage All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)

Turkey reserves the right to adopt or maintain, modify or adopt any measure with regard to

the provision of activities falling within maritime cabotage services as defined in the

domestic legislation2, including but not limited to: feeder services, related to transport of

international cargo and transport of equipment including empty containers for international

trade between two points located in Turkish shores; as well as and, maritime offshoretransport

services, as defined in the Annex on Maritime Transportin relation to offshore exploration and

exploitation of natural resources under Turkish jurisdiction.

Maritime auxiliary

services and services at the

port

All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)

Turkey reserves the right to adopt or maintain any measure that accords differential treatment

to persons of other countries due to application of reciprocity.

Maritime transport:

pushing and towing

services



provision of pushing and towing services (CPC 7214), including anchor handling; servicing

offshore exploration and exploitation of natural resources, and any other related service.

Maritime agency services All National Treatment (Art. I 4) Turkey reserves the right to maintain, modify or adopt any measure with respect to the

provision of maritime agency services.

Internal waterways

transport All National Treatment (Art. I 4)


provision of internal waterways transport; including passenger (CPC 7221) and freight (CPC

7222) transportation; rental of vessels with crew (CPC 7223); and pushing and towing

services (CPC (7224).

Supporting services for

water transport All National Treatment (Art. I 4)

Turkey also reserves the right to maintain, modify or adopt any measure with respect to the

provision of supporting services for water (maritime and internal waterways) transport (CPC

745); including port and waterway operation services (excl. cargo handling) (CPC 7451);

pilotage and berthing services (CPC 7452); navigation aid services (CPC 7453); vessel

salvage and refloating services (CPC 7454); and other supporting services for water transport

(CPC 7459).

2 According to the “Law Concerning Coastal Shipping (Cabotage) along Turkish Shores and Performance of Trade and Business in Turkish Ports and Territorial Waters” (Law No: 815), the right

to transport goods and passengers from one point to another along Turkish shores and to perform towing and piloting, and all other port services of any type, whatsoever, within or between

Turkish ports and shores shall belong exclusively to ships and vessels that fly the Turkish flag in accordance with Article 940 of the Turkish Commercial Code (Law No. 6102), and, to Turkish

nationals. For further clarification, this Schedule does not establish any right for natural person service suppliers for the conduct of activities falling under cabotage rights as stipulated in the “Law

Concerning Coastal Shipping (Cabotage) along Turkish Shores and Performance of Trade and Business in Turkish Ports and Territorial Waters”; these activities are reserved for Turkish nationals.

These activities include: the right to perform trade in rivers and lakes, in the Marmara Sea and the Straits, in continentalterritorial waters, and in gulfs, ports, bays and the like within

continentalterritorial waters, by means of fixed or floating vessels such as ships, tugboats, steamboats, motorboats, barges, lighters, rowboats and, in brief, all types or large or small vessels driven

by machinery, sail or oars, and/or dredges, cranes, crane barges, flat-bottomed boats, transport and water boats, salvage vessels, buoys, pontoons, rafts or the like, and by performing navigation and

transportation using the same. In addition, the right to catch or obtain fish, oysters, mussels, sponges, pearls, coral, mother-or-pearl and the like, extract sand, gravel and the like, extract and

salvage sunken ships and vessels or shipwrecks and the like either on the surface or on the bottom of the sea, perform diving, searching, piloting and maritime supply, work as captain, engineer,

secretary, crew or workman or in another capacity on Turkish maritime vessels, and carry out wharf porterage or any type of maritime business, within Turkish continentalterritorial waters,

belongs exclusively to Turkish nationals.

Air transport services All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)


the provision of air transport services, as set out in the Annex on Air Transport Services,

except for the selling of air transport services; computer reservation systems (CRS) services,

maintenance and repair of aircraft, and ground-handling services.

Space transport services All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)


the provision of space transport services (CPC 733).

Rail transport services 1,3 National Treatment (Art. I 4) With respect to passenger and freight transportation (CPC 7111+7112), Turkey reserves the

right to maintain a public monopoly for domestic rail transportation services.

Rail transport services All

NT (Art. I-4)

LP (Art. X.1)


the provision of pushing and towing services (CPC 7113); maintenance and repair of rail

transport equipment (8868**); and supporting services for rail transport services (CPC 743).

Road transport services 1

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)

Without prejudice to the provisions of Annex on Road Transport Services, Turkey reserves

the right to adopt or maintain, modify or adopt any measure with respect to international road

freight transport services as defined in the Annex the provision of passenger and freight

transportation services (CPC 7121 and+7122; 7123)., and rental of commercial vehicles with

operator (CPC 7124); without prejudice to the provisions of Annex on Road Transport.

Road transport services All National Treatment (Art. I 4)


provision of rental of commercial vehicles with operator (CPC 7124); and supporting

services for road transport services (CPC 744).

Road transport services 1, 2 National Treatment (Art. I 4) Turkey reserves the right to maintain, modify or adopt any measure with respect to the

provision of maintenance and repair of road transport equipment (CPC 6112+8867).

Pipeline transport All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)


provision of pipeline transport services, including transportation of fuels (CPC 7131) and

transportation of other goods (CPC 7139).

Services auxiliary to all

modes of transport



provision of cargo handling services (CPC 741); storage and warehousing services (CPC

742); container station and depot services; customs clearance services; freight transport

agency services (CPC 7480); and other services auxiliary to all modes of transport (CPC

7490).

Other transport services All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)


provision of any other transport services including combined transport.

Other services (CPC

95+97+98+99) All

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)


provision of services included under CPC 95,97, 98, and 99.

PART I: HORIZONTAL COMMITMENTS-SECTION B

Sector or

Sub-sector Mode Market Access Commitments Obligations Concerned Conditions, Limitations and Reservations

All sectors 3, 4

NT (Art. I-4)

Appointment of a fully authorized commercial

representative who is domiciled in Turkey is required

when commercial companies headquartered

abroadorganized under the laws of a foreign government

open branches in Turkey.

[Turkish Commercial Code (Law No. 6102), Art. 40]

All sectors:

Collection,

transfer,

processing,

storage of data

All

NT (Art. I-4)

Collection, transfer, processing and storage of personal

data is subject to the provisions of Law no. 6698 on the

Protection of Personal Data.

In addition, data is required to be stored in the territory

of Turkey in the following cases:

- Taxpayers are obliged to store the electronic books of

accounts and other electronic records, documents and

reports (including, inter alia, e-invoices and e-tickets)

that they are required to keep pursuant to Tax Procedure

Law, at their own computing centres within the territory

of Turkey, or at locations where Turkish legislation

apply. The electronic documents, reports or records

stored by third parties or stored abroad do not have legal

validity before the Revenue Administration. However,

this requirement does not prevent the taxpayers from

having a secondary archive outside the Turkish territory.

The Revenue Administration has the authority to

determine and modify the scope of data to be kept

electronically by the taxpayers, and the standards and

technical requirements regarding the storage of data.

[Tax Procedure Law (Law no. 213) and the

Communiqué no. 397, Art. 6; Communiqué no. 431, Art.

7(3); Communiqué no. 433, Art. 9(h), and Communiqué

no 462, section 11 under the Tax Procedure Law; and

Electronic Books of Accounts Communiqué no. 1, section

4.1(d)]

- Service providers and intermediary service providers

are responsible for the protection of personal data

obtained during the transactions made in accordance

with the Law no. 6563 on E-Commerce. Such personal

data cannot be disclosed to third persons or used for any

other purposes without the explicit consent of the

relevant person. [Law no. 6563 on the Regulation of

Electronic Commerce, Art. 10]


- Without prejudice to the legislation on the protection of

personal data, location data and traffic data within the

context of electronic communications can be transferred

abroad only upon the explicit consent of the relevant

person. [Law No. 5809 Electronic Communications,

Art.51(6)]

- Electronic certificate3 service suppliers are obliged to

generate certificate, signature creation and verification

data within the territory of Turkey and are not allowed to

transfer signature creation data abroad by any means.

[By-law on the Procedures and Principles Pertaining to

the Implementation of Electronic Signature Law, Art.

18.(1)]

- Registered electronic mail (REM)4 service suppliers are

obliged to keep the main and backup REM systems

within the territory of Turkey. [By-law on the

Procedures and Principles Pertaining to the Registered

Email System, Art. 16.(1)]

- Financial service suppliers are obliged to maintain their

computing centres (both primary information systems5

and their backups) within the territory of Turkey.

[-Insurance Law no. 5684;

-Private Pension Savings and Investment System Law no.

4632;

-Regulation on Internal Systems of Insurance,

Reinsurance and Pension Companies

-Banking Law no. 5411 and Regulations on Banking

Law;

-Bank Cards and Credit Cards Law no. 5464 and the

Regulation on Bank Cards and Credit Cards;

-Law on Payments and Securities Settlement Systems,

Payment Services and Electronic Money Institutions

No.6493 and Regulation on Payments and Securities

Settlement Systems, Payment Services and Electronic

Money Institutions;

-CMB Communiqué on Principles Regarding Investment

Services, Activities and Ancillary Services;

-CMB Guidelines on Investment Services, Investment

Activities and Investment Companies]

3 Electronic certificate means electronic data binding the signature verification data of the signature owner to the identity data of that person. 4 Registered electronic mail (REM) is an enhanced form of mail transmitted by electronic means (e-mail) which provides evidence relating to the handling of an e-mail including proof of

submission and delivery. 5 Information systems are comprised of infrastructure, hardware, software and data which ensure the execution of financial activities as well as the recording and use of information in electronic


All Sectors All PR (Art. X.3) Any existing measure inconsistent with Article X.3 of

the Annex on Localisation.

All sectors:

commercial

presence

3

Companies established organised under the laws

of a foreign countries government are required

to obtain authorization from the Ministry of

Economy to open representative (liaison)

offices. Representative (liaison) offices cannot

engage in commercial activities in Turkey.

Unbound for the constitution of foundations,

trusts, associations and any other non-profit

organizations, as well as provision of services

on a self employed basis in the territory of

Turkey.

NT (Art. I-4) Representative (liaison) offices cannot engage in

commercial activities in Turkey.

[Foreign Direct Investment Law No. 4875, Art. 3(h)]

All sectors:

real estate

acquisition

3

Foreign invested commercial companies are

permitted to acquire real estate in Turkey,

provided that the real estate to be acquired is

related to business activities listed in their

aArticles of aAssociation.

NT (Art. I-4) Foreign invested commercial companies can only

acquire real estate in Turkey on the condition that the

real estate to be acquired is related to business activities

listed in their Articles of Association.

[Land Registry Law No. 2644, Art. 36]

All sectors:

real estate

acquisition

1, 3, 4

The Council of Ministers has the authority to

determine, modify or limit the conditions of

and/or to partially or fully withdraw or ban the

right to real estate acquisition by foreign natural

persons and juridical persons which have their

headquarters abroadorganised under the laws of

a foreign government and have no commercial

presence in Turkey, in line with national

interests.

All sectors:

Monopolies

and public

utilities

1, 3

The following sectors are closed to private

investments because of the existence of public

monopolies: postal services; railway

transportation and infrastructure; electricity

transmission; lotteries in cash, football pools.

Economic activities considered as public

utilities at the national or local level may be

subject to public monopolies or to exclusive

rights granted to private operators. Public

utilities include such service activities as the

distribution of energy and water, and other

activities considered as public services.

All sectors:

privatization

and services

supplied in the

exercise of

governmental

authority

3

Turkey may adopt any measure affecting the

transfer or disposition of equity interests or

assets held by state enterprises or governmental

authorities.

In addition, Turkey may adopt any measure

regarding the provision of a service by private

entities which, at the time of entry into force of

this Agreement, is provided in the exercise of

governmental authority.

All sectors:

government

procurement

All

Turkey may adopt any measure affecting or

governing the procurement by governmental

agencies of services purchased for governmental

purposes and not with a view to commercial

resale or with a view to use in the supply of

services for commercial sale. However, for

financial services, Turkey’s commitments under

Article X.6 (Financial Services purchased by

Public Entities) of the Annex on Financial

Services apply.

All sectors 4

Unbound except for measures concerning the

entry and temporary stay of natural persons in

the following categories:

I. Intra-corporate transferees are natural

persons who have been employed by a juridical

person of a Party for at least one year and who

are temporarily transferred to one of its

subsidiaries, affiliates or branches in the

territory of Turkey. The natural person

concerned shall belong to one of the following

categories.

Executives-Managers:

Natural persons working in a senior position

within a juridical person, who primarily direct

the management of the company, receiving

general supervision or direction principally

from the board of directors or shareholders of

the business or their equivalents, including:

(A) directing the company or a department or

sub-division thereof;

(B) supervising and controlling the work of

other supervisory, professional or managerial

employees; and

(C) having the authority personally to recruit

and dismiss or recommend recruiting,

dismissing or other personnel actions.

Specialists:

Natural persons working within a juridical

person, and who possess uncommon

knowledge essential to the company’s

production, research equipment, techniques or

management. In assessing such knowledge,

account will be taken not only of knowledge

specific to the company, but also of whether

the person has a high level of qualification

referring to a type of work or trade requiring

specific technical knowledge, including

membership of an accredited profession.

II. Trainees: means natural persons who have

been employed by a juridical person of a Party

for at least one year, who possess a university

degree and who are temporarily transferred to

one of its subsidiaries, affiliates, or branches in

the territory of Turkey for career development

purposes or to obtain training in business

techniques or methods.6

III. Business visitors are natural persons

working in a senior position within a juridical

person of a Party and who are responsible for

setting up a subsidiary, affiliate or branch in the

territory of Turkey. They do not engage in direct

transactions with the general public and do not

receive remuneration from a source located in

Turkey.

IV. Business Service Sellers: means natural

persons who are representatives of a service

supplier of a Party seeking temporary entry into

the territory of Turkey for the purpose of

negotiating the sale of services or entering into

agreements to sell services for that service

supplier. They do not engage in making direct

sales to the general public and do not receive

remuneration from a source located within

Turkey.

6 The recipient company may be required to submit a training programme covering the duration of stay for prior approval, demonstrating that the purpose of the stay is for training

corresponding to the level of a university degree.

Intra-corporate transferees and trainees need

to obtain a work permit from the Ministry of

Labour and Social Security in accordance with

the legislation on the employment of foreigners.

The work permits may be issued, in accordance

with respective laws, regulations and

requirements of Turkey, for a period of up to

one year. Turkey may authorise an extension for

the period allowed in conformity with the laws

and regulations in force in its territory.

Business visitors and business service sellers

are not required to obtain work permits. The

entry and temporary stay of business visitors

and business service sellers may be permitted,

in accordance with respective laws, regulations

and requirements of Turkey, for a period of up

to 90 days within 180 days.

NT (Art. I-4) Intra-corporate transferees and trainees are required to

obtain a work permit, which is issued for a period of up

to one year.

[International Labour Law No. 6735, Art. 10]

The entry and temporary stay of business visitors and

business service sellers is permitted for a period of up to

90 days within 180 days.

[Law on Foreigners and International Protection,

Art. 11]

All sectors All3, 4

Foreign engineers and architects may engage in

the provision of engineering and architecture

services in Turkey only after becoming a

temporary member of the related professional

chamber under the Union of Chambers of

Turkish Engineers and Architects.

National Treatment (Art. I 4) Foreign engineers and architects are required to obtain

temporary membership to the related professional

chamber under the Union of Chambers of Turkish

Engineers and Architects for engaging in the provision of

engineering and architectural services in Turkey.

PART II. SECTOR SPECIFIC COMMITMENTS

Sector or Sub-sector Market Access Commitments Obligations Concerned Conditions, Limitations and Reservations

1. BUSINESS SERVICES

A. Professional Services

(a) Legal services7

(i) Domestic law (host-country

law)

Legal advisory and

representational services,

legal arbitration, conciliation

and mediation services.

1)Unbound

2) None

3) Unbound

4)Unbound

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)

1,2,3,4) With regard to supply of “legal services”, the

following activities are reserved to Turkish “attorneys

at law (avukat)” enrolled with bar associations:

- Legal representation, advisory and documentation

services on domestic law,

- Litigation and representation of natural or legal

persons before Turkish courts, arbitrators,

conciliators or other bodies empowered with

jurisdictional functions; and, preparation of all

relevant legal documents.


is reserved for Turkish nationals enrolled with Turkish

Bar Associations.



Association)



7

For the purposes of this entry:

‘domestic law (host-country law)’ – the law of Turkey.

‘foreign law (home-country law)’ – the law of the territories of TiSA Parties and other countries other than the law of Turkey.

‘international law’ – includes law established by international treaties and conventions, as well as customary law. ‘legal advisory services’ – includes provision of advice to and consultation with clients in matters, including transactions, relationships and disputes, involving the application or interpretation of law; participation with

or on behalf of clients in negotiations and other dealings with third parties in such matters; and preparation of documents governed in whole or in part by law, and the verification of documents of any kind for purposes

of and in accordance with the requirements of law. Does not include advice, consultation and documentation services performed by service suppliers entrusted with public functions, such as notary services, or services provided by patent or trade mark attorneys.

‘legal representational services’ – includes preparation of documents intended to be submitted to courts, administrative agencies, and other duly constituted official tribunals in matters involving the application and

interpretation of law; and appearance before courts, administrative agencies, and other duly constituted official tribunals in matters involving the application and interpretation of the specified body of law. (Footnote 1:

The inclusion of representational services before administrative agencies and other duly constituted official tribunals within the context of legal services does not necessarily mean that a licensed lawyer must supply

such services in all cases. The precise scope of services subject to licensing requirements is subject to the discretion of the relevant regulatory authority.) Does not include documentation services performed by service

suppliers entrusted with public functions, such as notary services, or services provided by patent or trade mark attorneys. ‘legal arbitration, conciliation and mediation services’ – preparation of documents to be submitted to, preparation for and appearance before, an arbitrator, conciliator or mediator in any dispute involving the

application and interpretation of law. As a sub-category, international legal arbitration, conciliation or mediation services refers to the same services when the dispute involves parties from two or more countries.

For the purposes of these definitions: ‘arbitration’ is taken to mean a process in which the parties to a dispute present arguments and evidence to a dispute resolution practitioner (the arbitrator) who makes a determination.

‘mediation’ is taken to mean a process in which the parties to a dispute, with the assistance of a dispute resolution practitioner (the mediator), identify the disputed issues, develop options, consider alternatives and

endeavour to reach an agreement. The mediator has no advisory or determinative role in regard to the content of the dispute or the outcome of its resolution, but may advise on or determine the process of mediation whereby resolution is attempted.

‘conciliation’ is taken to mean a process in which the parties to a dispute, with the assistance of a dispute resolution practitioner (the conciliator), identify the issues in dispute, develop options, consider alternatives and

endeavour to reach an agreement. The conciliator may have an advisory role on the content of the dispute or the outcome of its resolution, but not a determinative role. The conciliator may advise on or determine the process of conciliation whereby resolution is attempted, and may make suggestions for terms of settlement, give expert advice on likely settlement terms, and may actively encourage the participants to reach an

agreement.

(ii) Foreign Law (home-country

law)


(in relation to foreign law

only) legal arbitration,


services.

(iii) International Law


(in relation to international

law only) legal arbitration,


services.

1) None

2) None








attorneys.


horizontal section.

NT (Art. I-4)




is reserved for the Turkish nationals enrolled with

Turkish Bar Associations.



Association;



(a) Legal services (advisory

services on foreign and

International Law only)

(CPC 861**)

1) None

2) None








attorneys.


horizontal section.

NT (Art. I 4)



(b) Accounting, auditing and

bookkeeping services (CPC

862)

1) Unbound

2) None

3) Authorized financial advisers8 may

associate their works in the form of a

“partnership office (adi ortaklık)” or an

“equity company9 (sermaye şirketi)” in


Commercial Code after becoming a

member of the related Chamber.

Foreign auditing firms may carry out

independent audit in Turkey on the

condition that they are authorized by

Public Oversight, Auditing and

Accounting Standards Authority, in

accordance with the principle of

reciprocity.

Auditing firms are required to be

established as “equity companies” in


Commercial Code. Auditing firms that

will perform the audits of capital market

institutions are required to be established

as “joint-stock corporations”.


- Majority of its capital and voting

rights shall be owned by auditors,

and all the partners of the firm shall

be members of profession.10

- The members of its managing body

shall be entirely composed of the

members of profession; and

majority of them, but provided that

this ratio does not exceed seventy-

five percent, shall be the auditors

permanently employed by it. 4) Unbound

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)

3, 4) Only financial advisers (“certified public

accountants (serbest muhasebeci mali müşavir)”) and

“sworn-in public accountants (yeminli mali müşavir)”

can supply accounting, auditing and bookkeeping

services. Turkish nationality is required for both

professions. However, the nationality requirement can

be waived for financial advisers For the provision of

accounting, auditing and bookkeeping services,

authorization of foreign financial advisers is subject to

reciprocity condition. , and aApproval of the Prime

Minister upon the proposal of the Ministry of Finance

is required for the authorization of financial advisors in

such a case.

Commercial presence by authorized natural person

financial advisers is permitted only in the form of a

partnership office or an equity company among

authorized financial advisers, and on the condition of

being a member to related Chamber. Foreign titles and

names cannot be used in the titles of partnerships or

equity companies among Turkish and foreign financial

advisers.

In addition, foreign auditing firms and auditors may

carry out independent audit in Turkey on the condition

that they are authorized by Public Oversight, Auditing

and Accounting Standards Authority, in accordance

with the principle of reciprocity.


- Majority of its capital and voting rights shall be

owned by auditors, and all the partners of the firm

shall be members of profession.11

- The members of its managing body shall be entirely

composed of the members of profession; and

majority of them, but provided that this ratio does

not exceed seventy-five percent, shall be the auditors

permanently employed by it.

8 The term “financial adviser” used in this entry refers to a “Certified Public Accountant (Serbest Muhasebeci Mali Müşavir)” pursuant to the “Law No. 3568 on Certified Public

Accountants and Sworn-In Public Accountants”. Foreign financial advisers can be authorized, under reciprocity condition, by the approval of the Prime Minister upon the

proposal of the Ministry of Finance. 9 Equity company types are “joint-stock corporation (anonim şirket)”, “limited liability company (limited şirket)” and “partnership limited by shares (sermayesi paylara bölünmüş komandit

şirket)”.

4) Turkish nationality is required for “certified public

accountants (serbest muhasebeci mali müşavir)” and

“sworn in public accountants (yeminli mali müşavir)”

for the provision of accounting, auditing and

bookkeeping services.

[- Law No. 3568 on Certified Public Accountants and

Sworn-In Public Accountants;

- Turkish Commercial Code (Law No: 6102)

- Statutory Decree (No. 660) on the Organization and

Duties of Public Oversight, Accounting and Auditing

Standards Authority;

- By Law on Independent Audit;

- Circular No. 1996/2 by the Chambers of Certified

Public Accountants and Sworn in Public Accountants

(TÜRMOB)]

(c) Taxation Services

- Business tax planning

and consulting services

(CPC 86301)

Business tax

preparation and review


Individual tax

preparation and

planning services (CPC

86303)

Other tax related


1) None

2) None

3) None


horizontal section.

1) Unbound

2) Unbound

3) Unbound

4) Unbound

1) Unbound

2) Unbound

3) Unbound

4) Unbound

1) Unbound

2) Unbound

3) Unbound

4) Unbound

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)

1, 3, 4) Only “sworn-in public accountants” can supply

taxation services other than business tax planning and

consulting services. Turkish nationality is required.

[-Tax Procedure Law no. 213 and related

Communiqués;

-Law No. 3568 on Certified Public Accountants and

Sworn-In Public Accountants]

10 ”Members of profession” are “certified public accountants (serbest muhasebeci mali müşavir)” or “sworn-in public accountants (yeminli mali müşavir)” pursuant to the Law No. 3568; and

Turkish nationality requirement exists for members of profession. 11 ”Members of profession” are “certified public accountants (serbest muhasebeci mali müşavir)” or “sworn-in public accountants (yeminli mali müşavir)” pursuant to the Law No. 3568; and

Turkish nationality requirement exists for members of profession.

(d) Architectural services

(CPC 8671)

1) None

2) None

3) None


horizontal section.

(e) Engineering services (CPC

8672)

1) None

2) None

3) None


horizontal section.

(f) Integrated engineering

services (CPC 8673)

1) None

2) None

3) None


horizontal section.

(g) Urban planning and


services (CPC 8674)

1) UnboundNone

2) UnboundNone

3) UnboundNone


horizontal section.

(h) Medical and dental services

(CPC 9312)

1) Unbound

2) Unbound

3) Unbound

4) Unbound

(i) Veterinary services (CPC

932)

1) UnboundNone

2) None

3) Unbound except for animal hospitals.

Wholly foreign owned animal hospitals

can be established in Turkey on the

condition that all the veterinaries

employed are Turkish nationals.

Obtaining an authorisation for

establishment from the Ministry of

Food, Agriculture and Livestock is

required. Responsible director of the

animal hospital must be a veterinary.


nationality is required for performing the

veterinary profession.

NT (Art. I-4)

LMBD (Art. X-2)

3, 4) Nationality requirement exists for veterinaries.

Responsible director of an animal hospital must be a

veterinary.

[Law No. 6343 on the Exercise of Veterinary

Profession]

(j) Services provided by

midwives, nurses,

physiotherapists and para


93191)

1) Unbound

2) Unbound

3) Unbound

4) Unbound

(k) Other professional services 1) Unbound

2) Unbound

3) Unbound

4) Unbound

B. Computer and Related

Services

(a) Consultancy services

related to the installation of

computer hardware

(CPC 841)

(b) Software implementation

services (CPC 842)

(c) Data processing services

(CPC 843)

(d) Database services including

data storage, data hosting

and web hosting services

(CPC 844)

1) None

2) None

3) None


horizontal section.

1) None

2) None

3) None


horizontal section.

1) None

2) None

3) None


horizontal section.

1) Unbound

2) UnboundNone

3) UnboundNone


horizontal section.

(e) Other CRS

- Maintenance and repair

services of office machinery

and equipment including

computers (CPC 845)

- Training services for staff of

clients12

(CPC 84990**)

CPC 849 except for training

services for staff of clients

1) UnboundNone

2) UnboundNone

3) None


horizontal section.

1) None

2) None

3) None


horizontal section.

1) Unbound

2) Unbound

3) Unbound

4) Unbound

C. Research and Development

Services (excluding R&D

financed in whole or in

part by public funds)

(a) R&D services on natural

sciences (CPC 851 except

CPC 85102** and CPC

85104. Only R&D services

on chemistry are covered

under CPC 85102.)



(CPC 852)


services (CPC 853)

1) UnboundNone

2) None

3) None except juridical persons duly

established in Turkey, but which are

acting on behalf of foreign natural

persons or juridical persons that have no

commercial presence in Turkey, are

required to obtain prior permission to




horizontal section. In addition, to


the Turkish territory, foreign natural

persons are required to obtain prior

permission.

NT (Art. I-4)

3) Juridical persons duly established in Turkey but

acting on behalf of foreign persons are required to

obtain prior permission to conduct scientific research

activities in the Turkish territory.

4) Foreign natural persons are required to obtain prior

permission to conduct scientific research activities in


[Council of Ministers Decision No: 88/12839 and

dated 04/04/1988 on “Principles Applicable to

Foreigners or Those Applying on behalf of Foreigners

who Request to Conduct Scientific Research and

Analysis or Make Movies in Turkey, and to Foreign

Press Members”.]

12 Electrical, electronic and computer engineers must obtain proficiency and qualification certificates from the permanent in service training center of the Chamber of Electrical Engineers.????

Bu DR değil mi? Her odanın eğitim şartları var ayrıca…



(CPC 852)


services (CPC 853)

1) Unbound

2) Unbound

3) Unbound

4) Unbound

1) Unbound

2) Unbound

3) Unbound

4) Unbound

D. Real Estate Services

(a) Involving own or leased

property (CPC 821)

(b) On a fee or contract basis

(CPC 822)

1) Unbound

2) Unbound

3) Unbound

4) Unbound

1) Unbound

2) Unbound

3) Unbound

4) Unbound

E. Rental/Leasing Services

without Operators

(a) Relating to ships13

(CPC

83103)

(b) Relating to aircraft129

(CPC

83104)

(c) Relating to other transport

equipment (CPC 83101 +

83102 + 83105)

(d) Relating to other

machinery and equipment

(CPC 83106-83109)

(e) Leasing or rental services

concerning personal and

household goods (CPC

832)

1) UnboundNone

2) None

3) None


horizontal section.

F. Other Business Services

(a) Advertising services

(CPC 871)

1) None

2) None

3) None


horizontal section.

13 This commitment does not include or confer any right with regard to carrying the Turkish flag.

(b) Market research services

(CPC 864)

1) None

2) None

3) None


horizontal section.

(c) Management consulting

services (CPC 865)

1) None

2) None

3) None


horizontal section.

(d) Services related to

management consulting

(CPC 866 except 86602)

1) None

2) None

3) None


horizontal section.

(e) Technical testing and

analysis services, excluding

technical testing, analysis

and control (inspection)

services relating to

construction and

construction materials14

- Composition and purity

testing and analysis

services (CPC 86761**)15


services of physical

properties (CPC 86762)


services of integrated

mechanical and electrical

components (CPC 86763)

- Technical inspection


1) UnboundNone

2) UnboundNone

3) None


horizontal section.

1) UnboundNone

2) UnboundNone

3) None


horizontal section.

1) UnboundNone

2) UnboundNone


commercial presence for testing and

analysis services regarding automobiles

and other motor vehicles is subject to an

economic needs test.

Main criteria: the number of and impact

on existing domestic suppliers,

protection of public health, safety, and

the environment.


horizontal section.

1) UnboundNone

2) UnboundNone

3) None


horizontal section.

14 Turkey does not assume any commitments regarding technical testing and analysis services relating to the construction sector, including construction and building control activities performed

to ensure that the whole construction process, as well as the construction materials used as inputs in the construction, are in conformity with the technical specifications and standards specified

by relevant laws and regulations. 15 Only inspection, testing and analysis services of air, water, noise level and vibration level under CPC 86761.

(f) Services incidental to

hunting (CPC 881**)

Services incidental to

agriculture and forestry

(CPC 881**)


2) None

3) Only Group A travel agencies may

operate in this field with the condition

of obtaining a hunting licence


horizontal section.

1) Unbound

2) Unbound

3) Unbound

4) Unbound

LP (Art. X.1)

National Treatment (Art. I 4)


[- Law No. 4915 on Land Hunting;

- Regulation concerning the Principles and Procedures

applicable to Domestic and Foreign Hunters within the

context of Hunting Tourism (published on the O.G.

dated Jan. 8th, 2005)]

(g) Services incidental to fishing

(CPC 882)

1) Unbound

2) Unbound

3) Unbound

4) Unbound

(h) Services incidental to

mining

(CPC 883+5115)


2) None

3)16

None

4) “Technical supervisors (teknik

nezaretçi)” and “permanent supervisors

(daimi nezaretçi)” in mining sites are

required to be Turkish nationals.



NT (Art. I-4)

LP (Art. X.1)


4) “Technical supervisors (teknik nezaretçi)” and

“permanent supervisors (daimi nezaretçi)” in mining

sites are required to be Turkish nationals.

[-Mining Law No. 3213;

-Regulation on the Implementation of Mining Law]

(i) Services incidental to

manufacturing

(CPC 884+885 except for

88442)

1) Unbound

2) Unbound

3) Unbound

4) Unbound

(j) Services incidental to energy

distribution (CPC 887)

1) Unbound

2) Unbound

3) Unbound

4) Unbound

(k) Placement and supply

services of personnel (CPC

872)

1) Unbound

2) Unbound

3) Unbound

4) Unbound

16 Petroleum and Mining Laws specify that services incidental to mining require an operating licence.

(l) Investigation and security

(CPC 873)

1) Unbound

2) Unbound

3) Unbound

4) Unbound

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)

Private investigation and security services can only be

provided by companies established in accordance with

Turkish Commercial Code. Establishment of such

companies is subject to the approval of Ministry of

Interior.

Turkish nationality is required for the founders and

managers of private investigation and security

companies, as well as the private security guards.

Establishment of private investigation and security

companies by foreign persons or provision of such

services by foreign investigation and security

companies is subject to reciprocity.

[- Law no. 5188 on Private Security Services

- Regulation on the Implementation of Law no. 5188

published in the Official Gazette dated 7 October 2004,

no. 25606]

(m) Related scientific and

technical consulting services

(CPC 8675)

1) Unbound

2) Unbound

3) Unbound

4) Unbound

(n) Maintenance and repair of

equipment (not including

maritime vessels, aircraft or

other transport equipment)

(CPC 633+ 8861-8866)

1) UnboundNone

2) Unbound None

3) None


horizontal section.

(o) Building-cleaning services

(CPC 874)

1) Unbound*None

2) None

3) None


horizontal section.

(p) Photographic services

(CPC 875) except

specialty photography


Specialty photography


1) UnboundNone

2) None

3) None


horizontal sectionservices.

1) Unbound

2) Unbound

3) Unbound

4) Unbound

(q) Packaging services

(CPC 876)

1) None

2) None

3) None


horizontal section.

(r) Printing

(CPC 88442**)

Publishing

(CPC 88442**)

[Excluding publishing

services of newspapers,

magazines and

publications of news

agencies]

1) UnboundNone

2) None

3) None


horizontal section.

1) UnboundNone

2) None

3) None


horizontal section.

(s) Convention services

(CPC87909**)

1) UnboundNone

2) None

3) None


horizontal section.

(t) Other

- Translation and

interpretation services

(CPC 87905)

1) Unbound

2) None

1, 3) None except for translation and

interpretation services supplied by

sworn/certified interpreters in relation

with notary services.

- Sworn/certified translation services:

unbound

2) None

4) Unbound for sworn/certified translation

services. Otherwise Uunbound except

as indicated in the horizontal section.

- Representation/agency

services before the Turkish

Patent Institute (TPE)

1,3) Only qualified persons registered with

the Turkish Patent Institute (the

Institute) can act as an agent in Turkey

to perform procedures for the

establishment and protection of

industrial property rights, and to conduct

official procedures before the Institute.

Legal persons acting as representatives

before the Institute must be represented

by a natural person who has the

qualifications of an agent.

2) None

4) Only a Turkish national who resides in

Turkey can become a natural person

agent.

NT (Art. I-4)

LP (Art. X.1)

3, 4) Only a Turkish national who resides in Turkey

can become a natural person agent to perform

procedures for the establishment and protection of

industrial property rights, and to conduct official

procedures before the Institute.

Legal persons acting as representatives before the

Institute must be represented by a natural person who

has the qualifications of an agent.

[- Law No. 5000 on the Establishment and Functions of

Turkish Patent Institute, Article 30;

- Decree Law No. 551 on the Protection of Patent

Rights, Article 171;

- Decree Law No. 554 on the Protection of Industrial

Designs, Article 67;


Geographical Indications, Article 14;


Trademarks, Article 80;

- Law No 5147 on the Protection of Integrated Circuits

Topographies, Article 23]

2. COMMUNICATION

SERVICES

Postal Services (postal and

courier services)

Postal services cover the

acceptance, collection,

processing, shipment,

distribution and delivery of

“postal items” as defined in

the Law on Postal Services

No. 6475

1, 3) Establishment in the form of an “equity

capital company (sermaye şirketi)”17

is

required.

“Posta ve Telgraf Teşkilatı Anonim Şirketi

(PTT A.Ş.)”, a wholly state owned

enterprise, is authorized by the Law on

Postal Services to supply postal services and

has the monopoly right to supply the

following services:

- acceptance, collection, sorting, transport,

distribution and delivery of domestic and

international items of correspondence

whose weight or fee limits are determined

by the Council of Ministers18;

- Without prejudice to the provisions related

with electronic notification of the Tax

Procedural Law no. 213 dated 4/1/1961,

acceptance, collection, sorting, transport,

distribution and delivery of any type of

official notice, including through

electronic media, within the scope of the

Law numbered 7201 and other laws;

- Postal services of Turkish Armed Forces

in peacetime;

- Printing and sale of postal stamps that

show the fees to be collected in postal

services, personal stamps, commemorative

stamps, postcards and first day covers.

2) None


horizontal section.

LP (Art. X.1)

1) Commercial presence is required in the form of an

equity capital company.

[- Law on Postal Services No. 6475;

- By-law on the Provision of Postal Services;

- By-law on Authorization for Postal Services Sector]

17

In accordance with Article 124 of the Turkish Commercial Code (Law No. 6102), the following are considered equity capital companies: “joint-stock company (anonim

şirket)”; “limited liability company (limited şirket)”; “limited partnership in which the capital is divided into shares (sermayesi paylara bölünmüş komandit şirket)”. 18

Until the weight and/or fee limits of monopoly right is determined by the Council of Ministers, the PTT A.Ş. shall continue to exercise its monopoly right over all the open

and closed letters and postcards bearing any kind of correspondence without any weight limit.

A. Postal Services

(CPC 7511)

B. Courier Services

(CPC 7512)

1),3)Public monopoly

2) None

4) Unbound1) None

2) None

3) Through the establishment of joint stock

or limited liability companies.


horizontal section.

C. Telecommunication

Services19

(a) Voice telephone

services

(b) Packet-switched data


(c) Circuit-switched data


(d) Telex services

(f) Facsimile services

(g) Private leased circuit

services

(h) Electronic mail

(i) Voice mail

(j) On-line information

and data-base

retrieval

(k) Electronic data

interchange

(l) Enhanced/value-added

facsimile services, incl.

store and forward, store and

retrieve

(m) Code and protocol

(n) On-line information

and/or data processing

(o) Others

- Mobile services

analog/digital cellular

- Paging services

- Cable broadcasting services

- Satellite Communications

Services (VSAT, SCPC

VSAT) Satellite Platform

Services

- GMPCS services

- Infrastructure services

- Private/Public Access

- Mobile Radio Services

- Directory Information

Services

1), 3) Except for national public

organizations and state-owned

enterprises foreseen by law, in order to

be authorized, establishment in the

territory of Turkey is required in the

form of a joint-stock or limited liability

company.

Electronic communications

(telecommunications) services and

infrastructure requiring authorization in

the form of limited number of rights of

use can be provided only by joint-stock

companies.

2) None


horizontal section

LP (Art X.1)


1) Commercial presence is required in the form of a

joint-stock or limited liability company.

[- Law on Electronic Communications No. 5809;

- By-law on Authorization for Electronic

Communications Sector]

19 The scope of telecommunications in this Schedule does not cover any kind of (analog-digital) radio and TV programme broadcasting services to the public.

D. Audiovisual services

(Excluding Broadcasting)

(a) Motion picture and video

tape production and

distribution services (CPC

9611)

(b) Motion picture projection

services (by cinema theatre

owners only) (CPC 9612**)

(c) Radio and television services

(CPC 96131, 96132)

(d) Radio and television

programme distribution20

services, excluding

transmission



distribution of motion pictures in

physical media (CD, video-tape, etc).

2) None

3) None


horizontal section.

1) Unbound*

2) None

3) None


horizontal section.

1) None

2) None

3) None


horizontal section.



distribution of radio and TV

programmes in physical media (CD,

video-tape, etc).

2) None

3) None


horizontal section.

LP (Art X.1)


1) Commercial presence is required for the distribution

of motion pictures, radio and TV programmes and

sound recordings in physical media.

[- Law No. 5846 on Intellectual and Artistic Work;

- Regulation on the Recording and Registration of

Intellectual and Artistic Works;

- Regulation on the Procedures and Principles

Regarding the Certification of the Enterprises

Disseminating or Performing the Recording, Copying

and Sale of the Materials on which Intellectual and

Artistic Works are Fixed]

20 For greater certainty, distribution services in this context may include the licensing of radio and television programmes to other service providers for exhibition, broadcast or the transmission,

rental, sale or use. Turkey does not undertake any commitments on the provision of transmission services for radio and television programmes.

(e) Sound recording

(For the purposes of this

Schedule, sound recording

service activities are

defined as fixation of a

series of musical, spoken,

or other sounds in a

studio, but not including

the sounds accompanying

a motion picture, radio or

television programme or

other audio-visual work.)

(f) Other

1) None

2) None

3) None


horizontal section.

1) Unbound

2) Unbound

3) Unbound

4) Unbound

E. Other Communication

-Telegraph Services

- Registered Electronic Mail

Services

1, 3) PTT A.Ş., a wholly state owned

enterprise, is the exclusive service

supplier Unbound

2) None Unbound

3) Unbound

4) Unbound

1, 3) Either a joint-stock company that is

established to build and operate a

registered electronic mail (REM) system

pursuant to the Turkish Commercial

Code No. 6102; or the administration

that is authorized to make official

electronic notices according to the

provisions of Notification Law No. 7201

(The General Directorate of Post and

Telegraph Organization-PTT A.Ş.) can

provide registered electronic mail

services.

2) None


horizontal section.

LP (Art X.1)

1) Commercial presence in the form of a joint-stock

company is required.

[- Turkish Commercial Code No. 6102, Article 1525;

- By-law on the Procedures and Principles Pertaining

to the Registered E-mail System.]

3. CONSTRUCTION AND

RELATED

ENGINEERING

SERVICES

(CPC 51)2, 513, 514+516,

517)

CPC 511, 515, 518

1) None

2) None

3) None


horizontal section.

1) None

2) None

3) None


horizontal section.

5. DISTRIBUTION

SERVICES21

A. Commission agents' services

(CPC 621)

B. Wholesale trade services

(CPC 622)

C. Retailing services

Only for CPC 631, 632,

6112, 61130** (retailing

services of parts and

accessories of motor

vehicles), 61210** (retailing

services of motorcycles and

snowmobiles and related

parts and accessories); but

excluding retailing services

of alcoholic beverages

(63107**); tobacco products

(63108); pharmaceutical

goods (63211); optical goods

(CPC 63254**); seeds,

fertilizers, pesticides and

preparations of a kind used

in animal feeding

(63295**); coal and wood

(CPC-63297); instruments

and appliances for

measuring electricity, gas

and liquid (CPC482**);

and, taximeters.

D. Franchising (CPC 8929)

E. Other

1) Unbound

2) Unbound

3) Unbound

4) Unbound

1) Unbound

2) Unbound

3) Unbound

4) Unbound

1) Unbound

2) None

3) None except Turkey may apply

economic needs tests on commercial

presence. In addition, Turkey may take

any measure affecting the supply of any

product subject to import prohibition or

non-automatic import licensing.


horizontal section.

1) Unbound

2) Unbound

3) Unbound

4) Unbound

21

Turkey allows distribution services to be supplied via franchising where MA commitments are undertaken.

5. EDUCATION SERVICES

A.,B.,E. Primary, Secondary

and Other Educational

Services (CPC 921,

922, 929)

1,3) Natural and legal foreign persons

directly or by establishing partnership

with Turkish citizens may establish

international educational institutions

(including vocational and technical

schools) only for foreign students.

2) None


in primary and secondary educational

institutions and in non-formal

educational institutions (i.e. in language

teaching and vocational training centers)

after getting a prior permission from the

Ministry of National Education to obtain

a work permit from the Ministry of

Labour and Social Security

NT (Art. I-4)

1,3) Foreign persons, either directly or through


Iinternational educational institutions (including

vocational and technical schools). established by

foreign persons, either directly or through partnership

with Turkish persons, These institutions can only admit

foreign students.

4) Foreign teachers and experts may work in primary

and secondary educational institutions and in non-

formal educational institutions (i.e. in language

teaching and vocational training centers) after

obtaining a prior permission from the Ministry of

National Education. General work permit requirements

also apply.


C. Higher Education Services

(CPC 923)

1) None

2) None

3) Private universities [“non-profit

foundation higher education institutions

(vakıf yükseköğretim kurumları)”]can

only be established by foundations

constituted under Turkish Civil Code,

and through the enactment of a specific

Law. All the members of the

administrative board of higher education

institution [i.e. the Board of Trustees

(Mütevelli Heyeti)], as well as the

president (rector) must be Turkish

nationals.

4) All the members of the administrative

board of higher education institution [i.e.

the Board of Trustees (Mütevelli

Heyeti)], as well as the president (rector)

must be Turkish nationals. Otherwise,

unbound except as indicated in the

horizontal section.

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)

3,4) Private universities [“non-profit foundation higher

education institutions (vakıf yükseköğretim

kurumları)”] can be established only by foundations

constituted under Turkish Civil Code, and through the

enactment of a specific Law.

All members of the administrative board of higher

education institution [i.e. the Board of Trustees

(Mütevelli Heyeti)], as well as the president (rector)

must be Turkish nationals.

[- Constitution of the Republic of Turkey, Art.130-132

- Law No. 2547 on Higher Education

- Law No. 2809 on the Organization of Higher

Education Institutions

- Regulation by the Higher Education Council

concerning Non-profit Foundation Higher Education

Institutions (“Vakıf Yükseköğretim Kurumları

Yönetmeliği”)]

D. Adult Education (CPC 924)

1) None

2) None

3) Foreign persons directly or by

establishing partnership with Turkish

persons may only establish international

educational institutions, and only for

foreign students.


in educational institutions after getting a

prior permission from the Ministry of

National Education to obtain a work

permit from the Ministry of Labour and

Social Security.

NT (Art. I-4) 3) Foreign persons, either directly or through


international educational institutions. These institutions


4) Foreign teachers and experts may work in

educational institutions after obtaining a prior

permission from the Ministry of National Education.

General work permit requirements also apply.


6. ENVIRONMENTAL

SERVICES

A. Sewage Services

(CPC 9401)

B. Refuse Disposal Services

(CPC 9402)

C. Sanitation and Similar

Services (CPC 9403)

D. Other:

- Cleaning services of

exhaust gases (CPC 9404)

- Noise abatement services

(CPC 9405)

Nature and landscape

protection services (CPC

9406)

Any other environmental

service (CPC 9409)

1) Unbound

2) None

3) None


horizontal section

1) Unbound

2) None

3) None


horizontal section.

1) Unbound

2) None

3) None


horizontal section.

1) Unbound

2) None

3) None


horizontal section.

1) Unbound

2) None

3) None


horizontal section.

1) Unbound

2) Unbound

3) Unbound

4) Unbound

1) Unbound

2) Unbound

3) Unbound

4) Unbound

7. FINANCIAL SERVICES

HORIZONTAL COMMITMENTS

Measures affecting the supply of services through commercial presence which are applicable to all sub-sectors of Financial Services are listed below.

Banking 3) Establishment of a bank or opening the

first branch of a foreign bank in Turkey is

subject to the permission of the Banking



received following the consummation of

establishment or branch opening transactions

in order to start receiving deposits and/or

conducting banking transactions.

Banks and first branches of foreign banks


stock company. At least one member of the

board of directors of the banks must reside

in Turkey.

Lending limits for the branches of foreign

banks are based on branch capital rather than

worldwide capital.

NT (Art I-4)

LMBD (Art. X.2)

SMBD (Art X.13)

3) Lending limits for the branches of foreign banks are

based on branch capital rather than worldwide capital.

At least one member of the board of directors of the

banks must reside in Turkey.

[- Banking Law No. 5411;

- Regulation on Operations of Banks Subject to

Permission and Indirect Shareholding;

- Regulation On Internal Systems Of The Banks and

ICAAP]

Insurance 3) Insurance and reinsurance companies


stock or a mutual company (cooperative).

For the purpose of commencing their

operation, insurance and reinsurance

companies have to obtain a license from the

Undersecretariat of Treasury for each

insurance branch in which they would like to

operate.

Securities Market 3) For the establishment and operations of

capital market institutions22

permission of

the Capital Markets Board (CMB) is

required. Also, banks engaging in capital

market activities (investment services) are

required to obtain from the CMB appropriate

authorization certificates for these activities.

Establishment of branches and agencies by


established in Turkey also requires the

CMB's permission.

Securities intermediary institutions,

investment companies, and other capital

market institutions with the exception of

investment funds23

can only be established

in the form of a joint-stock company.

Establishment of branches and

representative offices of foreign securities

intermediary institutions is not permitted.

The CMB may take any measure to ensure

that the establishment of capital market

institutions or their branches and agencies

are beneficial to the economic development

of Turkey as well as to the stability,

soundness and development of capital

markets.

3) Establishment of branches and representative offices

of foreign securities intermediary institutions is not

permitted.

[- Capital Market Law No. 6362

- CMB Communiqué on Principles of Investment

Funds,

- CMB Communiqué on Principles of Exchange Traded

Funds,

- CMB Communiqué on Real Estate Investment Funds,


Investment Funds,

- CMB Communiqué on Portfolio Management

Companies and Activities of Such Companies,


Investment Services, Activities and Ancillary Services,


Establishment and Activities of Investment Firms,

- CMB Communiqué on Principles of Real Estate



and Private Equity Investment Companies,

- CMB Communiqué on Principles of Securities


- CMB Communiqué on Portfolio Depositary Service

and Providers of Such Service,

- The Individual Pension Savings and Investment

System Law No. 4632,

-CMB Implementing Regulation on the Principles

Applicable to the Establishment and Operations of

Pension Investment Funds]

22 According to the Capital Market Law, capital market institutions are specified as follows:

(a) Investment firms,

(b) Collective investment schemes,

(c) Independent auditors, appraisal companies and rating agencies performing activities in capital market,

(d) Portfolio management companies

(e) Mortgage finance corporations,

(f) Housing finance and asset finance funds,

(g) Asset lease companies,

(h) Central clearing institutions,

(i) Central securities depositories,

(j) Trade repositories,

(k) Other capital market institutions, the establishment and operation principles for which are determined by the Capital Markets Board. 23 According to Capital Market Law, investment funds can be established in contractual type within the fund rules in conformity with the fiduciary ownership principles.

OTHER FINANCIAL

SERVICES

A. Financial leasing service

3) Financial leasing companies (lessors) can

only be established in the form of a joint-

stock company.

Establishing a financial leasing company or

opening of first branches in Turkey by

companies established abroad is subject to

prior permission of the Banking Regulation

and Supervision Board. A permission to

operate should also be received.

B. Factoring and consumer

financing services

3) Factoring companies and financing

companies must be established in the form

of a joint-stock company.

Establishment of these companies is subject

to prior permission of the Banking



received.

C. Foreign exchange dealers

(“Yetkili müessese”)

3) In order to engage in activities as a

foreign exchange dealer (“yetkili

müessese”), authorization from the

Undersecretariat of Treasury must be

obtained. The Undersecretariat may take

any measure to ensure that the establishment

of foreign exchange dealers or their

subsequent branches and agencies is

beneficial to the economic development of

Turkey as well as to the stability, soundness

and development of financial markets.

Foreign exchange dealers must be

established in the form of a joint-stock

company.

D. Precious metals exchange

3) To operate as a Precious Metal

Intermediary Institution (PMII) one should

obtain permission from Undersecretariat of

Treasury. Banks, foreign exchange dealers,

joint-stock companies engaging in trade and

production of precious metals, branches,

which are located in Turkey, of the

companies resident abroad engaging in trade

and production of precious metals may

apply to the Undersecretariat to operate as a

PMII. Moreover, it is also possible to apply

for permission to the Undersecretariat to

operate solely as a precious metal brokerage

institution and to be established as a joint

stock company to operate as such.

Sector specific Financial Services Commitments (horizontal Mode 3 restrictions/qualifications listed above also apply):

Insurance and Insurance-related

Services

(i) Direct insurance

(A) Life

(B) Non-life

1) None

2) None

3) None


horizontal section.

1),2) Unbound except:

(a) The hull insurance of aircrafts,

helicopters and ships which are

purchased through a foreign loan or

leased through a financial leasing

contract from abroad, provided that the

insurance period is limited to the term

of the credit or leasing contract;


(c) Transportation insurance of imported

and exported goods;

(d) Personal injury, sickness, health and

motor vehicle insurance, limited to the

time during which people will be

abroad or temporarily staying abroad,

(e) Insurance of ships and yachts

registered with the Turkish

International Maritime Registry.

3) None


horizontal section.

(ii) Reinsurance and

retrocession

1) None

2) None

3) None


horizontal section.

(iii) Insurance intermediation

such as brokerage and

agency

1),2) Unbound for intermediaries (agents

and brokers) except the ones dealing

with life insurance and non-life

insurance categories indicated in the

“(i)(B) Non-life” section and

reinsurance brokers.

3) Juridical person insurance and

reinsurance agencies and brokers must

be established in Turkey in the form of

a joint-stock or limited-liability

company. The general manager and the

deputy managers responsible for

technical departments must reside in

Turkey. Insurance agencies and brokers

that are established in foreign countries

may engage in insurance intermediation

activities only by means of opening

branches in Turkey. Institutional form

and residency requirements stipulated

above apply for branches, as well.

4) Natural person insurance and

reinsurance brokers and agents have to

reside in Turkey. Otherwise, unbound


section.


LP (Art. X.1)

LMBD (Art. X.2)

SMBD (Art X.13)

3) The general manager and the deputy managers

responsible for technical departments must reside in

Turkey.

4) Natural person insurance and reinsurance brokers

and agents have to reside in Turkey.

[- Insurance Law No. 5684;

- Regulation on Insurance Agencies;

- Regulation on Insurance and Reinsurance Brokers]

(iv) Services auxiliary to

insurance, such as

consultancy, actuarial, risk

assessment and claim

settlement services

1),2) None except adjusters and actuaries.

3) None

4) Unbound for adjusters and actuaries.



Banking and Other Financial

Services

(v) Acceptance of deposits and

other repayable funds from

the public

1) Unbound

2) None

3) No natural person or legal entity other

than credit institutions or those

authorized under specific regulations can

accept deposits or other repayable funds

from the public.


horizontal section.

(vi) Lending of all types

including consumer credit,

mortgage credit, factoring

and financing of

commercial transaction

(A) Consumer credit

(B) Factoring

(C) Mortgage credit

1) Unbound

2) None

3) Banks and financing companies can lend

consumer credits.


horizontal section.

1) Unbound

2) None

3) Banks and factoring companies can

engage in factoring activities.


horizontal section.

1) Unbound

2) None

3) Financial leasing companies and

financing companies which are found

eligible to operate in housing finance by

the Banking Regulation and Supervision

Agency, as well as banks can engage in

trading of mortgage credits.


horizontal section.

(D) Financing of commercial

transactions

1) Unbound

2) None

3) Banks, financial leasing companies,

factoring companies, and financing

companies can engage in financing of

commercial transactions.


horizontal section.

(vii) Financial leasing

1) Unbound

2) None

3) Banks which are not authorized to

accept deposits and financial leasing

companies can engage in financial

leasing transactions.


horizontal section.

(viii) All payment and money

transmission services,

including credit and debit

cards and travellers cheques

1) Unbound

2) None

3) All pPayment and money transmission

services can only be conducted by banks

and institutions authorized in accordance

with the “Law on Payments and

Securities Settlement Systems, Payment

Services and Electronic Money

Institutions”. The institutions engaging

in the provision of payment and money

transmission services are required to be

established in Turkey, in the form of a

joint-stock company.

Credit and debit cards services can only

be provided by banks.

Transfers of foreign exchange abroad

must be carried out through the banking

system.


horizontal section.

(ix) Guarantees and

commitments

1) Unbound

2) None

3) None


horizontal section.

(x) Trading for own account or

for account of customer,

whether on an exchange, in

an over-the-counter market

or otherwise, the following:

(A) Money market

instruments (including

cheques and bills)

(B) Foreign exchange

(C) Derivative products

including, but not

limited to, futures and

options

1) Unbound

2) None

3) Trading of money market instruments

can be performed by both banks and

securities intermediary institutions;

however, securities intermediary

institutions cannot engage in the trading

of cheques and bills.


horizontal section.

1) Unbound

2) None

3) Banks, foreign exchange dealers,


(limited to investment services and

activities), as well as national postal

administration (the General Directorate

of Post and Telegraph Organization)

can engage in foreign exchange trading.


horizontal section.

1) Unbound

2) None



trading of derivative products in

compliance with CMB legislation.

Authorised banks can execute orders in

derivative instruments except for those

based on stock indices and stocks, and

deal on own account in derivative

instruments except for those based on

stocks.


horizontal section.

(D) Exchange rate and

interest rate instruments,

including products such

as swaps and forward

rate agreements

(E) Transferable securities

(F) Other negotiable

instruments and

financial assets,

including bullion

1) Unbound

2) None



trading of exchange rate and interest

rate instruments.

Only securities intermediary institutions

can provide “leveraged transactions” as

defined in Capital Market Law No.

6362 (i.e. retail forex brokerage).


horizontal section.

1) Unbound

2) None

3) Banks and securities intermediary


transferable securities in compliance

with CMB legislation. However, only

securities intermediary institutions can

provide such investment services with

regard to execution of orders and

dealing on own account in shares.


horizontal section.

1) Unbound

2) None

3) Banks and related intermediary


other negotiable instruments and

financial assets, including bullion.


horizontal section.

(xi) Participation in issues of all

kinds of securities,

including underwriting and

placement as agent

(whether publicly or

privately) and provision of

services related to such

issues

1) Unbound

2) None

3) Development and Investment Banks

and securities intermediary institutions

authorised by the CMB can provide

underwriting and placement services for

the securities to be issued after being

registered by the CMB.


horizontal section.

(xii) Money broking

1) Unbound

2) None

3) None


horizontal section.

(xiii) Asset management

such as cash or portfolio

management, all forms of

collective investment

management, pension fund

management, custodial,

depository and trust services

(A) Portfolio management

(B) Collective investment

Management

(C) Pension fund management

1) Unbound

2) None

3) Development and Investment Banks,


(excluding collective investment

management) and portfolio management

companies can provide these services.


horizontal section

1) Unbound

2) None

3) Collective investment portfolios can be

managed by portfolio management

companies. Investment companies can

also manage their own portfolios.


horizontal section.

1) Unbound

2) None

3) Portfolio management companies

established in Turkey can provide these

services.


horizontal section.

(D) Custodial, depository

and trust services

1) Unbound

2) None


intermediary institutions operating in

capital market can provide custodial

services for their customers. Depository

accounts related with capital market

instruments, with the exception of

government debt instruments held in

bank portfolios, can only be kept by

Central Registry Agency.


horizontal section.

(xiv) Settlement and clearing

services for financial assets,

including securities,

derivative products, and

other negotiable

instruments

1) Unbound

2) None

3) Only Takasbank A.S. can provide

securities settlement and clearing

services.

Only the institution authorized by

Central Bank of the Republic of Turkey

can provide check clearing services.24

Payment and securities settlement

systems can only be operated by

financial institutions authorised by

Central Bank of the Republic of Turkey.

Financial institutions operating payment

and securities settlement systems are

required to be established in Turkey, in

the form of a joint-stock company.


horizontal section.

24 Cheque Law Nr. 5941, Article 8, Paragraph 1

(xv) Provision and transfer of

financial information

- Financial data processing

and [provision and transfer

of] related software by

suppliers of other financial

services

1) None

2) None

3) None


horizontal section.

1, 2, 3, 4) Mandatory localization

requirements apply. Financial service

providers are obliged to establish and

maintain their data processing centres (both

primary information systems25

and their

backups) in Turkey for the storage and

processing of data.

(xvi) Advisory, intermediation

and other auxiliary

financial services on all

the activities listed in

subparagraphs (v) through

(xv), including credit

reference and analysis,

investment and portfolio

research and advice,

advice on acquisitions and

on corporate restructuring

and strategy

1) None

2) None

3) None


horizontal section.



8. HEALTH RELATED AND

SOCIAL SERVICES

A. Hospital Services

(CPC 9311)

B. Other Human Health

Services (CPC 9319 other

than 93191)

C. Social Services (CPC 933)

D. Other

1) Unbound*

2) None

3) Foreigners may establish private

hospitals with the permission of

Ministry of Health. The number and type

of hospitals, medical branches in each

hospital, number of required health

personnel, bed capacity as well as

procurement of medical devices may be

limited in accordance with investment

plans based on health service needs of

residential areas.

4) Unbound

1) Unbound

2) Unbound

3) Unbound

4) Unbound

1) Unbound

2) Unbound

3) Unbound

4) Unbound

1) Unbound

2) Unbound

3) Unbound

4) Unbound

9. TOURISM AND TRAVEL

RELATED SERVICES

A. Hotels and restaurants

(CPC 641-643)

1) Unbound*

2)26

None

3) None

4) After receiving the permission of the

Ministry of Labour and Social Security,

based on the affirmative opinions of the

Ministry of Interior and the Ministry of

Culture and Tourism, the hotels and

restaurants authorized by the Ministry of

Culture and Tourism may employ foreign

personnel. But the quantity of foreign

personnel that would be employed in an

enterprise shall not exceed 10 per cent of the

total personnel. This ratio could be increased

up to 20 per cent by the approval of the

Ministry of Culture and Tourism on a case

by case basis.

NT (Art. I-4)

4) The quantity of foreign personnel to be employed by

service suppliers in this sector may be restricted to 10%

of the total personnel employed. This amount could be

increased to 20% by the approval of Ministry of

Culture and Tourism on a case by case basis.

[Law No. 2634 on the Promotion of Tourism, Art. 18]

B. Travel Agencies and Tour

Operators Services

(CPC 7471)

1) Commercial presence is required

2) None

3) None


horizontal section.


LP (Art. X.1)

1) Foreign tTravel agencies organised under the laws

of a foreign government, which do not have a

commercial presence in Turkey, cannot organize tours

originating from Turkey to abroad.

[- Law No. 1618 on Travel Agencies and the

Association of Travel Agencies, Art.3;

- Regulation on Travel Agencies, Art. 8, 9, 20]

C. Tourist guides services (CPC

7472)

1) Unbound

2) None

3) Unbound


nationality is required for performing


NT (Art. I-4)

LP (Art. X.1)

1, 3, 4) Turkish nationality is required for performing


[Law No. 6326 on the Profession of Tourist Guides,

Art.3]

D. Other 1) Unbound

2) Unbound

3) Unbound

4) Unbound

* Unbound due to the lack of technical feasibility. 26 Turkish citizens may travel abroad without any restriction. Only, they are required to pay, with certain exceptions, a TL amount equivalent up to US$ 100 to the Public

Housing Fund, for each exit. The Turkish citizens going abroad for education and health purposes, as well as the ones who are either employed or assigned to permanent official

duties in foreign countries, are exempt from that payment.

10. RECREATIONAL,

CULTURAL AND

SPORTING SERVICES

A. Entertainment services

(including theatre, live

bands and circus services)

(CPC 9619)

B. News agency services

(CPC 962)

C. Libraries, archives,

museums and other

cultural services (CPC

963)

D. Sporting and other

recreational services

E. Other

1) UnboundNone

2) UnboundNone

3) UnboundNone


horizontal section.

1) Unbound

2) Unbound

3) Unbound

4) Unbound

1) Unbound

2) Unbound

3) Unbound

4) Unbound

1) Unbound

2) Unbound

3) Unbound

4) Unbound

1) Unbound

2) Unbound

3) Unbound

4) Unbound

11. TRANSPORT SERVICES

A. Maritime Transport

Services (except cabotage)


(CPC 7211)


(CPC 7212)

1) None

2) None


, the

shipping companies must have the

majority of (51 per cent) Turkish

shareholders.

4) Captain and crew of the Turkish flag

vessels should be Turkish citizens.

NT (Art. I-4)


, the shipping

companies must have the majority of (51 per cent)

Turkish shareholders.

[Turkish Commercial Code (Law no. 6102), Art. 940]

4) Turkish nationality is required for the captain and

crew of vessels flying the Turkish flag.




(Law No: 815)]

(c) Rental of vessels with

crew28

(CPC 7213)

1) None

2) None

3) None


horizontal section.

NT (Art. I-4) 1) Vessels rented out by foreigners cannot operate

within Turkish coastal waters. These vessels are

considered as foreign vessels and cannot fly the

Turkish flag.

4) Turkish nationality is required for the captain

and crew of vessels flying the Turkish flag.




(Law No: 815)]


vessels (CPC 8868**)

1) None

2) None

3) None


horizontal section.

27 In accordance with the Turkish Commercial Code:

- Each Turkish ship shall fly the Turkish flag.

- When ownership of a ship belongs to a natural person, the ship shall be regarded as a Turkish ship only if it is owned by a Turkish citizen.

- A ship that belongs to more than one natural person shall be regarded as a Turkish ship either if the majority shares are held by Turkish citizens in case of joint ownership/condominium-

principled ownership (“paylı mülkiyet”); or if the majority of the owners are Turkish citizens in case of co-ownership (“elbirliğiyle mülkiyet”).

- A ship that belongs to an institution, association and/or foundation with legal personality and established in accordance with Turkish legislation shall be deemed as a Turkish ship on the

condition that the majority of Board of Directors of such juridical persons are of Turkish nationality.

- A ship that belongs to a commercial company that is established in accordance with Turkish legislation shall be regarded as a Turkish ship on the condition that the majority of the personnel

having managerial authority are Turkish nationals; and, the majority voting rights belong to Turkish national shareholders in accordance with the articles of incorporation. In the case of a

joint-stock company (“anonim şirket”) or a partnership limited by shares (“sermayesi paylara bölünmüş komandit şirket”), in addition to the above mentioned conditions, majority of the

shares are required to be registered shares and that transfer of these shares to a foreign person must be subject to the approval of Board of Directors.

- Ships belonging to an association of ship-owners (“donatma iştiraki”) shall be deemed as Turkish ships, on the condition that the majority of shares belong to Turkish nationals, and that

majority of the ship-owners with managerial authority are also Turkish nationals. 28

This commitment does not include or confer any right with regard to maritime transportation services.

(e) Pushing and towing services

(CPC 7214)

1) Unbound

2) Unbound

3) Unbound

4) Unbound

(f) Supporting services for

maritime transport (CPC

745**)

1) Unbound

2) Unbound

3) Unbound

4) Unbound

B. Internal Waterways

Transport (CPC 722)

1) Unbound

2) Unbound

3) Unbound

4) Unbound

1,3) Establishment is required. Only Turkish

nationals and the juridical persons shares of

which belong to Turkish nationals can

supply these services.

2) None

4) Captain and Ccrew members have to be

Turkish nationals.

NT (Art. I-4)

LP (Art. X.1)

1,3) Establishment is required. Only Turkish nationals

and the juridical persons shares of which belong to

Turkish nationals can supply these services.

4) Captain and Ccrew members have to be Turkish

nationals.

[-Turkish Commercial Code, Law no. 6102]




(Law No: 815)]

Maritime Auxiliary Services as

defined in the Annex for

Maritime Transport Services

i) Maritime Cargo Handling

Services


2)None

3) For juridical persons:

Maritime cargo handling services can be

supplied by port (terminal) operators who

are granted a concession through port

privatization procedures. Privatization of

ports through transfer of ownership is not

allowed. The number of service suppliers to

participate in the privatization tenders and

the type of legal entity could be limited by

the Turkish Privatization Administration.









For natural persons: Turkish nationality is

required.

4) Unbound.

NT (Art. I-4)

LP (Art. X.1)


3) Other than port operators who are granted a

concession through privatization procedure, these



For natural persons: Turkish nationality is required.








ii) Storage and Warehousing

Services

iii) Customs Clearance Services

iv) Container Station and Depot

Services

v) Maritime Agency Services


2) None

3) None except for “customs warehouses”.

Customs warehouses can only be established

by a “joint stock” or a “limited liability”

company founded in accordance with the

Turkish Commercial Code, which has been

in operation for at least two years. Economic

need test applies.


horizontal section.







citizens.

1) Unbound*

2,3) None


horizontal section.


3,4) Only Turkish citizens can be appointed

or employed as authorized agents and

maritime agency personnel.

3) Maritime agency companies are obliged

to appoint an “authorized agent29

” and

employ at least one “maritime agency

personnel30

” at the agency and its branches.

LP (Art. X.1)

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)

NT (Art. I-4)

LP (Art. X.1)


[Customs Regulation ( Articles 512-519)]

3 ,4) For natural persons: Customs brokers must be

Turkish citizens.






3,4) Only Turkish citizens can be appointed or

employed as authorized agents and maritime agency

personnel.

3) Maritime agency companies are obliged to appoint

an “authorized agent31

” and employ at least one

“maritime agency personnel32

” at the agency and its

branches.

[Regulation on Maritime Agencies (Article 7)]



vi) Maritime Freight

Forwarding Services

Services at the Port (towing and

the tug assistance; port captain's

services; navigation aids;

emergency repair facilities;

anchorage, berth and berthing,

dredging services.)

Services at the port

(provisioning, fuelling and

watering; garbage collecting

and ballast waste disposal;

shore-based operational

services essential to ship

operations including

communications, water and

electrical supplies)

1) None

2) None

3) None


horizontal section.


2) None

3) Only Turkish nationals and juridical

persons shares of which belong to Turkish

nationals can supply these services


horizontal section.

1,3) These services can be supplied by port

(terminal) operators who are granted a

concession through port privatization

procedures. Privatization of ports through

transfer of ownership is not allowed. The

number of service suppliers to participate in

the privatization tenders and the type of

legal entity could be limited by the Turkish

Privatization Administration.









2) None

4) Unbound.

NT (Art. I-4)

LP (Art. X.1)

NT (Art. I-4)

LP (Art. X.1)


1,3) Only Turkish nationals and juridical persons

shares of which belong to Turkish nationals can

supply





1,3) Other than port (terminal) operators who are

granted a concession through privatization, these












C. Air Transport Services

(a) Selling of air transport

services

(b) Computer reservation

systems

(c) Maintenance and repair of

aircraft (CPC 8868**)

1) None

2) None

3) None


horizontal section.

1) None

2) None

3) None


horizontal section.

1) None

2) None



Communications is necessary to

perform functions for the maintenance

and repair of aircraft.


horizontal section.

(d) Ground-handling services

1) Unbound*

2) None



Communications (a Type-A or a Type-C

License) is necessary to perform ground-

handling services to airline operators on

a fee or contract basis. Authorizations

are provided only to commercial

companies established in accordance

with the Turkish Commercial Code.

Type-A license can be obtained by

ground-handling companies or by

domestic airline operators to provide

ground-handling services to other airline

operators. Foreign airline operators

cannot provide ground-handling services

to other airline operators.

For a company to obtain a Type-A or a

Type-C license to provide ground-

handling services, a) the majority of the

persons authorized for the administration

and representation of the company must

be Turkish nationals; b) according to the

Articles of Association, Turkish

shareholders should hold the majority of

the voting rights.

Passenger handling, ramp handling, and

load-control and communication

services can only be provided by a

ground-handling company with a Type-

A license.

Catering services can only be provided

by ground-handling companies operating

within the airport, companies with a

catering service provision license, and

domestic airline operators. Foreign

airline operators cannot provide these

services.

(cont’d on next page)

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)


3) For a company to provide ground-handling services:

a) the majority of the persons authorized for the

administration and representation of the company must

be Turkish nationals;

b) according to the Articles of Association, Turkish

shareholders should hold the majority of the voting

rights.

Foreign airline operators cannot provide ground-

handling services to other airline operators.

Foreign airline operators cannot provide catering

services.

4) The majority of the persons authorized for the

administration and representation of a ground-handling

company must be Turkish nationals.

[ - Turkish Civil Aviation Law (No. 2920)

- Civil Aviation Regulation No. 22 on Ground-handling

Services (SHY-22)]

Operation licenses may be limited in

number. In issuing an operation license,

criteria such as: runway, apron, taxiway

areas of the airport; air traffic capacity of

the airport; availability of parking and

workshop areas in the airport; existing

physical conditions of the airport and

forecasts on future market conditions;

and additional capacity needs are taken

into account.

4) The majority of the persons authorized

for the administration and representation

of a ground-handling company must be

Turkish nationals. Otherwise, unbound


section.

(e) Airport operation services

1) Unbound*

2) None

3) Airport operation services could be

provided through transfer of operational

rights of the state airports by leasing

(including built and transferred by

private sector entities through Built-

Operate-Transfer Model).

Transfer of operational rights by leasing

is rendered by the General Directorate of

State Airports Authority through tender

for a period of maximum 49 years.

Transferring of operation rights by

leasing is subject to the authorization by

the Ministry of Transport, Maritime

Affairs and Communications


horizontal section.

(f) Specialty air services

1) Unbound

2) Unbound

3) Unbound

4) Unbound

D. Space Transport (CPC 733) 1) Unbound

2) Unbound

3) Unbound

4) Unbound

E. Rail Transport Services


(only interurban passenger

transportation-CPC 71111)


(CPC 7111, 7112)

1) Unbound

2) None

3) Establishment as a commercial

company in accordance with the

Turkish Commercial Code is required

for obtaining authorization.


horizontal section.

1) Internal rail transportation is a public

monopoly.

2) None

3) Internal rail transportation is a public

monopoly.


horizontal section.

LP (Art. X.1)

1) Establishment as a commercial company in

accordance with the Turkish Commercial Code is

required.

[Regulation on the Authorization of Railway

Operators, published on the Official Gazette dated

19.08.2016, no 29806]

(c) Pushing and towing services

(CPC 7113)

1) Unbound

2) Unbound

3) Unbound

4) Unbound


rail transport equipment

(CPC 8868**)

1) Unbound

2) Unbound

3) Unbound

4) Unbound

(e) Supporting services for rail


1) Unbound

2) Unbound

3) Unbound

4) Unbound

F. Road Transport Services


(CPC 7121 + 7122)


(CPC 7123)

(c) Rental of commercial

vehicles with operator (CPC

7124)


road transport equipment

(CPC 6112+8867)

(e) Supporting services for road


1) Unbound

2) None

3) Turkish citizenship nationality or being a

legal entity established under the

relevant Turkish laws are required for

obtaining a carrier licence given by the

Ministry of Transport, Maritime Affairs

and Communications in order to become

an international transporter.


horizontal section.

1) Unbound

2) UnboundNone

3) UnboundNone


commercial section.

1) UnboundNone

2) UnboundNone

3) None


horizontal section.

1) Unbound Establishment is required

2) Unbound None


is required.

For juridical persons: Unbound

Unbound

4) Unbound

NT (Art. I-4)

NT (Art. I-4)

LP (Art. X.1)

3) Turkish citizenship nationality is required for natural

persons to obtain a carrier license to become an

international transporter.

[- Law no. 4925 on Road Transportation

- Regulation on Road Transport, Art. 12]


3) For natural persons: Turkish nationality is required.


G. Pipeline Transport

(a) Transportation of fuels

(CPC 7131)

(b) Transportation of other

goods (CPC 7139)

1) Unbound

2) Unbound

3) Unbound

4) Unbound

1) Unbound

2) Unbound

3) Unbound

4) Unbound

H. Services auxiliary to all

modes of transport

excluding maritime

auxiliary services

(a) Cargo-handling services

(CPC 741), Storage and

warehouse services (CPC

742),Freight transport

agency services (CPC 748),

other services auxiliary to all

modes of transport (CPC

749)

(b) Storage and warehouse

services (CPC 742)

(c) Freight transport agency

services (CPC 748) bunu

alt sektörlere böl..

(d) Other (CPC 749)

Customs Clearance Services


2)None

3) For natural persons: Turkish nationality is

required.


horizontal section.

1) Unbound

2) Unbound

3) Unbound

4) Unbound

1) Unbound

2) Unbound

3) Unbound

4) Unbound

1) Unbound

2) Unbound

3) Unbound

4) Unbound

1) Unbound

2) Unbound

3) Unbound

4) Unbound


2)None

3) For natural persons: Turkish nationality is

required.






citizens.

2) None

NT (Art. I-4)

LP (Art.X.1)

NT (Art. I-4)

LP (Art. X.1)

LMBD (Art. X.2)

1)Establishment is required

3) For natural persons: Turkish nationality is required


1,3 ,4) For natural persons: Customs brokers must be

Turkish citizens.





I. Other Transport Services 1) Unbound

2) Unbound

3) Unbound

4) Unbound

12. OTHER SERVICES NOT

INCLUDED ELSEWHERE

(CPC 95+97+98+99)

1) Unbound

2) Unbound

3) Unbound

4) Unbound

TURKEY –LIST OF MFN EXEMPTIONS




Article IV.4




the exemption

ALL SECTORS Turkey reserves the right to accord

differential treatment to any Party

or non-Party under any

international agreement signed

before or after the entry into force

of this Agreement and notified to

the World Trade Organization

(WTO) under Article V or Article

Vbis of the GATS.



force.


conditions for greater economic

cooperation between Turkey

and its trading partners.

ALL SECTORS (a) Extending full national

treatment for the investments

of the nationals or companies

of countries with which a

Bilateral Investment Treaty

is concluded.

(b)(i) Executing the transfers, in

specific periods, of the

nationals and companies of

certain countries which made

investments in Turkey.



force.

Belgium-Luxembourg,

Kuwait


conditions for a greater

economic cooperation between

Turkey and mentioned

countries and to encourage

investments by nationals and

companies of one country in the

territory of the other countries.

(ii) Granting foreign exchange

risk guarantee for certain

countries for the transfers

which are not realized due to

the difficulties in balance of

payments.

(c) Covering "trade risk" in

subrogation for one country.

Japan




Article IV.4




the exemption

(d) The agreements with three

countries, the MFN Articles

of which do not include the

derogation paragraphs

relating to the privileges

which are accorded to the

investors of the third

countries resulting from its

membership in or associated

with a free trade zone, an

economic cooperation, a

customs union or a common

market.

Japan, Bangladesh, Germany

ALL SECTORS

The restriction in the transfer

of the premiums for long-

term insurance schemes and

the employment of the

foreign country workers by

foreign companies is waived

for one country.

Libya

Indefinite

To ensure social security and

continuous employment of

Turkish workers in the

mentioned country.

ALL SECTORS

If the amount of the

consulate duties collected

from the Turkish nationals

by any country is higher than

the amounts written in the

tariff list, the amounts of

consulate duties which are

collected from the nationals

of that country will be

increased reciprocally.

All countries

Indefinite



ALL SECTORS

On the condition that the

legal requirements are

observed and with the

condition of reciprocity, the

foreign real persons may

own real estate in Turkey by

acquisition or by inheritance.

All countries

Indefinite

To secure the right of Turkish

nationals to acquire real estates

in a foreign country.




Article IV.4




the exemption

Professional

Services

If any foreign country lays

down legal and

administrative conditions

against Turkish citizens for

performing arts and

supplying services, the

similar activities of the

citizens of that country may

be prohibited in Turkey.

All countries

Indefinite


circumstances for Turkish

citizens to perform their

activities under equal

conditions in the other

countries.

Transportation

Services

The income and corporate

tax rates for the foreign road,

maritime and air transport

companies can reciprocally

be decreased down to zero or

increased to a new rate not

exceeding one fold of the

existing rate can be

determined, as a country by

country basis either for each

transportation mode or for all

modes of transportation.

All countries

Indefinite

Desire to facilitate and to lower

the costs of transportation


other countries.

Transportation

Services

Transit or bilateral

transportation services, can

be excluded from VAT.

This exception is granted,

with the condition of

reciprocity, to the related

countries' taxpayers who do

not have residence or their

legal and business centre in

Turkey.

All countries

Indefinite

Desire to lower costs and to

create favourable conditions for

the provision of services in this

sector.




Article IV.4




the exemption

Transportation

Services

To apply, on the basis of

reciprocity, restrictions,

prohibitions, different

treatment and different tariffs

to the goods and

transportation vehicles of the

countries which apply

restrictions, prohibitions and

different treatment to the

Turkish road, air and

maritime transportation

vehicles.

All countries

Indefinite

Desire to secure the smooth

functioning of mutual

transportation services.

Maritime Auxiliary

Services and

Services at the Port

To adopt or maintain any

measure that accords

differential treatment to

persons of other countries

due to application of

reciprocity.

All countries Indefinite Desire to ensure equal treatment


Road Transport

Services

To grant, through

international road transport

agreements, and on the basis

of reciprocity, privileges

regarding quotas and fees, or

exemptions from the

permission procedures.



force.

Indefinite

Desire to facilitate road

transport services between

Turkey and other countries.

Rail Transport

Services

The bilateral reduction in the

renting fees of railway

wagons of countries

mentioned aside (paragraph

a) and the application of

national treatment to tariff

rates on the reciprocal

transportation of goods with

the countries mentioned

aside (paragraph b).

a) Syria, Iraq, Iran, Lebanon

b) Commonwealth of

Independent States and the

Baltic Republics.

Indefinite

Desire to facilitate rail transport


other countries.




Article IV.4




the exemption

Accounting,

Auditing and Book-

keeping Services

In order to perform the

services under the title of

"financial advisor", the

nationals of the countries

which have officially

codified the principles for


advisory may be authorized,

under reciprocal conditions,

provided that these persons

should have the

qualifications required for


advisory in Turkey and

should have rights to

perform similar services in

their own countries.



conditions for Turkish financial

advisors to perform their jobs

under equal conditions all over

the world.

PSI · TRADE IN SERVICES AGREEMENT (TISA) TURKEY . SECOND REVISED OFFER . 1. This document contains...

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