Export Control and Defense Industry: Turkey Set the Monetary Threshold for Grant of Goods and Services to Friendly and the Allied States Without an Agreement

Recently, the Presidential Decree numbered 3546 (“Presidential Decree”) in relation with the Law numbered 3212 which regulates the Sale, Grant, Transfer, and Disposal of Surplus Goods and Services of the Armed Forces (“Law”), has been promulgated. Accordingly, the Presidential Decree, the grant, exchange, or donation of the several goods or services which are to be designated by the President to friendly or allied states and to public or private institutions and organizations in those states are now possible without need of an agreement to the extent those worth than TRY 40 million.  Further, the President.  is also authorized to set the monetary threshold.

Pursuant to the Presidential Decree, the goods and services which are designated as the services of the establishment of systems that will provide information exchange; and defect detection, consultancy, maintenance, and repair services of these systems; the trainings to be given to friendly or allied countries, whose duration does not exceed 12 weeks; and all kinds of airport and port services under the threshold shall be provided with a memorandum of understanding only. Most importantly, the goods included in the control lists subject to Law No. 5201 (e.g. barrelled weapons, military explosives, military aircraft in terms of 2020 list) and the documents, spare parts related to those, and the services of defect detection, consultancy, maintenance, and repair are also listed, on the condition that an appropriate dictum issued by the Ministry of Foreign Affairs. In this regard, it is required that the transfer of those to third states should not be restricted. Lastly, the other goods apart from these, and the services regarding the defect detection, consultancy, maintenance, and repair of those are also included.

Accordingly, all these goods and services shall be granted and donated to; and will be exchanged with the friendly or allied states up to 40 million Turkish Liras. Owing to the Presidential Decree, the disposals regarding the abovementioned goods and services shall be done via a memorandum of understanding.

Şafak Herdem, Nihan Ünal