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" number 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. During the period because the commercial growth and structure of the Turkey could not support the project, the activities were suspended.

However, the developments and the new structurings in the world economy brought up once again the matter of the Free Zones subject into the agenda.

First, within a reorganizational structure, the establishment of a
Free Zones Directorate within the Prime Ministry was decided upon in 1983.

Later on, the Free Zones were established as a Chairmanship within the structure of the State Planning Organization. In an attempt to reorganize the functions, initially the District Directorates were established in 1985. With 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 where the land and infrastructure are financed by the government, the superstructure is realized by the investor - users and the operations is awarded to the private sector. (eg.:Antalya, Mersin).
B-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 - users. (e.g. Aegean, Adana - Yumurtalık, Trabzon)
C-Free Zones where the land, insfrastructure and the superstructure are provided by the government and are operated by the state. (e.g. Atatürk Airport).
D-Free Zones where the land, infrastructure financing is provided by the private by the private sector, the superstructure is realized by the investor - users, and the operation is awarded to the private sector. (e.g. Istanbul - Thrace, Istanbul - Leather Industry, Europe, Kayseri, Gaziantep, Menemen, Mardin )