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What is Free Zone?

The free zones are the regional settlements within the political borders of a given country, which are placed outside the customs boundaries, where more incentives are offered to encourage industrial and commercial activities when compared with other regions.


THE DEVELEOPMENT OF FREE ZONES IN TURKEY

The initial attempt to establish a free zone in Turkey was realized in 1927, with "Free Zones regional Legislation" no 1132. In 1953, this legislation was replaced by Free Zones Law number 6209. Iskenderun was deemed to be the appropriate location and a free zone was established there. However, commercial growth and structure of Turkey was not able to support the Project then so the activities were suspended.

Later on, developments and reorganizations in the world economy brought the subject of free zones up to agenda. Firstly, establishment of a Free Zones Directorate within the Prime Ministry was decided upon in 1983.Then, Free Zones were established as a Chairmanship within the structure of the State Planning Organization. In 1985, Regional Directorates were established. Regarding to a Decree with the Force of Law published in 1991, the Free Zones General Directorate and the District Directorates were included into the structure of the Treasury and Foreign Trade Undersecretariat.

Types of Free zones according to their structures:

A - Free Zones established and operated by the private sector on the land provided by the government and the superstructure installations are realized by the investor - s. (e.g.Antalya, Mersin, İstanbul, Atatürk Airport, Aegean, Adana - Yumurtalık, Rize, Kocaeli, Samsun, Tübitak MAM)

B - Free Zones where the land, infrastructure financing is provided by the private sector, the superstructure is realized by the investor - s (e.g. Istanbul - Thrace, Istanbul - Industry, Europe, İzmir, Kayseri, Gaziantep, Menemen, Bursa, Denizli)