7 state aid in fisheries

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AGENDA ITEM 7: STATE AID SCREENING CHAPTER 13 FISHERIES Country Session: The Republic of TURKEY 31 March 2006

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SCREENING CHAPTER FISHERIES AGENDA ITEM 7: STATE AID 2 Republic of Turkey 31 March 2006 CONTENTS BRIEF INTRODUCTION TO STATE AID IN GENERAL STATE AID IN FISHERIES

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SCREENING CHAPTER FISHERIES AGENDA ITEM 7: STATE AID 3 Republic of Turkey 31 March 2006 Horizontal state aids provide support to enterprises including fisheries and aquaculture sector based on the requirements laid down by individual aid legislation. Main horizontal state aid categories: de minimis aid training aid aid to small and medium sized enterprises employment aid state aid for research and development state aid for environmental protection state aid for risk capital

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SCREENING CHAPTER FISHERIES AGENDA ITEM 7: STATE AID 4 Republic of Turkey 31 March 2006 Instruments Used in State Aid Programs Exemption from customs and fund levies Value Added Tax exemption for imported and domestically purchased machinery and equipment Credit allocation from the Budget Income tax relief Compensation to social security employer contribution Free of charge land allocation Energy support

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SCREENING CHAPTER FISHERIES AGENDA ITEM 7: STATE AID 5 Republic of Turkey 31 March 2006 Eligibility Criteria Development level of the region where plant is to be established Employment opportunities created by the investment Certain limits for the amount of investment Size of the SME (for SME support)

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SCREENING CHAPTER FISHERIES AGENDA ITEM 7: STATE AID 6 Republic of Turkey 31 March 2006 Horizontal state aid programs are combinations of measures covering tax exemption, soft loans and grants etc. It is difficult to calculate breakdown of support according to sectors and type of instruments used. For further details, see the presentations of the State Aid- Chapter 8: Competition Policy accessible on web through the page: www.abgs.gov.tr/tarama/tarama_files/08/08AT_Annotated.htm

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SCREENING CHAPTER FISHERIES AGENDA ITEM 7: STATE AID 7 Republic of Turkey 31 March 2006 STATE AIDS IN FISHERIES Export Refund for Prepared and Preserved Fish Tax Relief Scheme for Diesel Oil Used in Fishing Vessels Aquaculture Support Scheme Subsidized Credit Scheme for Fishermen and Fish Farmers

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SCREENING CHAPTER FISHERIES AGENDA ITEM 7: STATE AID 8 Republic of Turkey 31 March 2006 State Aids in Fisheries euro

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SCREENING CHAPTER FISHERIES AGENDA ITEM 7: STATE AID 9 Republic of Turkey 31 March 2006 EXPORT REFUND FOR PREPARED AND PRESERVED FISH

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SCREENING CHAPTER FISHERIES AGENDA ITEM 7: STATE AID 10 Republic of Turkey 31 March 2006 10 Republic of Turkey Export Refund for Prepared and Preserved Fish Aim: To develop the export potential of fisheries products Institution: Money-Credit and Coordination Council (Decision making authority) Undersecretariat for Foreign Trade (Implementing body)

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SCREENING CHAPTER FISHERIES AGENDA ITEM 7: STATE AID 11 Republic of Turkey 31 March 2006 Instruments and Implementation: Direct grant :  The subsidies are provided to exporters in the form of deduction of their debts to the public bodies (taxes, social insurance premium costs, energy costs, telecommunication costs) from their subsidy entitlement. The rate of the export refund for the exporters of prepared or preserved fish is 200$/Ton.

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12 TAX RELIEF SCHEME FOR DIESEL OIL USED IN FISHING VESSELS SCREENING CHAPTER FISHERIES AGENDA ITEM 7: STATE AID 31 March 2006 Republic of Turkey

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SCREENING CHAPTER FISHERIES AGENDA ITEM 7: STATE AID 13 Republic of Turkey 31 March 2006 Tax Relief Scheme for Diesel Oil Used in Fishing Vessels Aim: To reduce the cost of fishing activity Institution: Ministry of Finance (Decision making authority) Undersecretariat for Maritime Affairs (Implementing body)

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SCREENING CHAPTER FISHERIES AGENDA ITEM 7: STATE AID 14 Republic of Turkey 31 March 2006 Instruments and Implementation: Tax Relief: Diesel oil with no private consumption tax (PCT) is available for the fishing vessels that have fishing license and have been registered to Turkish National Register of Ships and Turkish International Register of Ships.

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15 AQUACULTURE SUPPORT SCHEME SCREENING CHAPTER FISHERIES AGENDA ITEM 7: STATE AID 31 March 2006 Republic of Turkey

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SCREENING CHAPTER FISHERIES AGENDA ITEM 7: STATE AID 16 Republic of Turkey 31 March 2006 Aquaculture Support Scheme Aim: To improve productivity and quality of aquaculture production Institution: Ministry of Agriculture and Rural Affairs (MARA)

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SCREENING CHAPTER FISHERIES AGENDA ITEM 7: STATE AID 17 Republic of Turkey 31 March 2006 Instruments and Implementation: Direct grant: The producers who hold the certificate of fish farming and, beginning from 2006, are registered to National Farmers Registiration System (NFRS) can benefit from these aids.

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SCREENING CHAPTER FISHERIES AGENDA ITEM 7: STATE AID 18 Republic of Turkey 31 March 2006 IV. SUBSIDIZED CREDIT SCHEME FOR FISHERMEN AND FISH FARMERS

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SCREENING CHAPTER FISHERIES AGENDA ITEM 7: STATE AID 19 Republic of Turkey 31 March 2006 Subsidized Credit Scheme for Fishermen and Fish Farmers Aim : To promote sectoral activities Institution : Undersecretariat of Treasury (subsidizing the difference between the normal and subsidized rates of Ziraat Bank- Decision making authority) Ziraat Bank and Agricultural Loans Cooperative Unions (ALCU) (Implementing body)

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SCREENING CHAPTER FISHERIES AGENDA ITEM 7: STATE AID 20 Republic of Turkey 31 March 2006 Instruments and Implementation: soft loans to fishermen or fish farmers max. 250,000 YTL (149,745 Euros) for each fishermen or fish farmer max. 5 years maturity for investment loans max. 18 months maturity for operating loans difference between the rates of Ziraat Bank imposes on farmers and market rate  subsidized byTreasury %30 subsidized loan for aquaculture (except bluefin tuna and carp production) %25 subsidized loan for fisheries

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SCREENING CHAPTER FISHERIES AGENDA ITEM 7: STATE AID 21 Republic of Turkey 31 March 2006 “State aid measures covered in this presentation reflect the current situation in Turkey, without any assessment with regard to maintaining them upon accession.”

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22 Republic of Turkey 31 March 2006 THANK YOU FOR YOUR ATTENTION SCREENING CHAPTER FISHERIES AGENDA ITEM 7: STATE AID