LOGISTICS

Logistics and Warehousing in Türkiye: Authorisation Certificates, Customs Warehouses and Contracts

European logistics companies long regarded Türkiye mainly as a transit country or as a market for subcontracted carriers. In recent years, however, with the trend towards nearshoring, many companies have been considering setting up their own warehousing, distribution or transport organisation in Türkiye. This step goes beyond incorporating a company and requires the permits arising from transport and customs legislation, as well as the contractual structure, to be planned from the outset.

Which permit the activity requires, however, is often only asked after the company has been incorporated and the warehouse leased. Yet the permit procedures can directly affect the corporate form, the shareholding structure and the choice of warehouse. The following sections address the main legal questions faced by companies planning to start logistics operations in Türkiye.

Corporate structure and scope of activity

Logistics activities in Türkiye are, as a rule, carried out through a company incorporated under Turkish law, and companies with foreign shareholders are subject to the same conditions as domestic companies in this respect. It is important, however, that the scope of business in the articles of association is drafted to match the authorisation certificates and customs permits to be applied for later, since a company with a narrowly defined scope may lose time having to amend its articles afterwards.

Whether the activity will be limited to organising transport or whether the company will also carry goods with its own vehicles, provide storage or operate in customs areas determines the type of permits required. It is therefore advisable to settle the business model before incorporation.

Transport authorisation certificates

In Türkiye, activities such as commercial road haulage, courier services and freight forwarding are subject to the authorisation certificates provided for in the relevant legislation. For storage activities, different permit and licensing requirements may apply depending on the nature of the service provided. The type of certificate depends on the activity, and each certificate has different requirements, such as professional competence, minimum vehicle capacity and capital. Operating without an authorisation certificate can lead to administrative fines and vehicles being taken off the road.

One point foreign companies must bear in mind here is the cabotage ban. Carrying goods between two points within Türkiye with foreign-registered vehicles is, as a rule, not permitted. If domestic distribution is to be performed with an own fleet, the vehicles must be registered in the name of the Turkish company and the required authorisation certificate must be obtained in that company's name.

Customs warehousing

The customs warehousing procedure allows imported goods to be stored without payment of import duties. Operating a customs warehouse requires authorisation from the customs administration; the warehouse must meet physical security requirements, the operator must provide a guarantee and the stock records must be kept in a way that allows supervision by the customs administration. It should be borne in mind that the operator may also be held liable for the duties on the goods if goods stored in the warehouse are lost or found missing.

Working with an existing customs warehouse operator instead of setting up one's own warehouse is also a common choice. In that case, the warehousing contract must clearly regulate the receipt of the goods, stock discrepancies, insurance and how any liability for duties towards the customs administration is allocated between the parties.

Authorised economic operator status

For companies that carry out customs procedures frequently and in large volumes, authorised economic operator status offers significant advantages in the form of simplified procedures and fewer controls. However, since this status requires specific conditions in terms of track record, financial solvency, record keeping and security standards, it is difficult for newly established companies to obtain at the initial stage. Where the status is a goal, it is therefore advisable for the company to set up its record keeping and internal control procedures in line with these requirements from day one.

Warehouse lease and service contracts

The zoning status and occupancy permit of the leased property being suitable for warehouse use is a precondition for obtaining the business and operating licence and fire safety permits. Experience shows that discovering, after the lease has been signed, that the property cannot be licensed is one of the most common causes of delay in logistics projects.

In warehousing and distribution contracts with customers, the scope of liability, the tolerance accepted for stock discrepancies, who is to take out insurance and the conditions for exercising the right of retention over the goods in the event of non-payment must be clearly specified.

Conclusion

Logistics and warehousing operations in Türkiye are a set-up that begins with incorporating a company but is only completed with transport authorisation certificates, customs permits and licensing procedures. Settling the business model early, choosing the warehouse according to permit requirements and clearly allocating liability in customs warehouse and customer contracts make it easier to start operations without delay. General questions on company formation and customs procedures are addressed on the pages of the relevant practice areas.