Domestic Goods Certificate
Domestic financial documents, all as will name suggests desired local content and produced in the production step in Turkey certificate issued for the products provided. the reference document that provides the necessary conditions for farmers Turkey Union of Chambers and Commodity Exchanges (TOBB) is able to depend Chamber of Commerce.
The notification, which includes the conditions and process of the Domestic Goods Certificate and the information, was published by the Ministry of Science, Industry and Technology in the Official Gazette dated September 13, 2014 and numbered 29118. According to this regulation, enterprises that want to have a Domestic Goods Certificate and make the necessary application are inspected by the Ministry. The control and follow-up of the certified producers is provided by a database automation created by TOBB. Thus, attempts to issue false documents are prevented.
Domestic Goods Certificate Advantages
The main objectives of the regulation of the Domestic Goods Certificate are to increase the localization rate in commercial products and to support companies trying to be domestic in production. Certified SME-status or larger enterprises have a 15% price advantage in public tenders. This price advantage covers products that are in medium and high technology status. Companies that have certificates and meet the criteria of at least 50% local production can benefit from this price advantage. The list of these products is published every year by the Ministry of Science, Industry and Technology.
How to Obtain a Domestic Goods Certificate?
There are certain prerequisites for the application to be made before the certificate is received. If a company will apply for a Domestic Goods Certificate;
• Industrial Registration Certificate and
• Capacity Report
must have. Companies that do not have these two documents cannot apply for a Domestic Goods Certificate.
In addition, companies are expected to achieve at least 51% localization rate in production for the product in question. For this, producers must fill in the domestic contribution rate calculation sheet for each product to be applied. These accounts are then examined by a freelance financial advisor, checked whether they comply with official procedures, and then approved.
The issue of calculating the domesticity rate is of critical importance. The technical evaluation of the calculated value is made by independent experts. These experts are requested from the chamber of commerce and industry to which the company is affiliated or from the relevant departments of the universities.
Documents Required for Domestic Goods Certificate
• Application petition
• Capacity Report and Industry Registration Certificate
• Domestic goods commitment
Original notarized signature circular
• Current invoices for domestic and imported inputs and raw materials used in the production of the product
• Domestic contribution rate account statement
• License copy of freelance or certified public accountant
• A document showing the expertise area of ??the expert who has been helped in calculating the localization rate (diploma, identity card of the institution he works for etc.)
• Account statement showing expenses
• Trademark registration certificate
Important Issues Regarding Domestic Goods Certificate
Some important issues should be taken into account in the application regarding the document, in the preparation of the document and in the following processes. Some of them can be listed as follows:
• The validity period of the Domestic Goods Certificate is 1 year and it must be renewed after this period.
• In order for the document to be issued, the address specified as the place of production in the Capacity Report and the address in the Industrial Registry Certificate must match.
• If vegetable products and animal products such as fruits, vegetables, cereals etc. are to be sold without any transaction, the Domestic Goods Certificate is issued by the trade exchange together with the producer receipt. The desired localization rate for these products is 100%, and as in other products, a calculation sheet of domestic cull rate is not requested.
• In the process of issuing a Domestic Goods Certificate, the validity period of the Capacity Report and Industrial Registry Certificate does not matter. At this stage, the only criterion is whether these documents are valid or not. If their validity period continues, a Domestic Goods Certificate can be issued.
• One of the most important issues for the document is whether energy use will be evaluated as domestic or imported input. If the electricity expenditures obtained from a domestic producer and produced with oil and natural gas are considered as domestic input. Oil or natural gas expenses taken from an importer or a distributor company are in the status of imported inputs.
Many companies provide consultancy services for issuing Domestic Goods Certificate. It is beneficial for companies that want to apply for a document for their products and obtain a document quickly, to work with consultancy firms. These companies help enterprises to prepare Capacity Reports, Industry Registration Certificate, domestic contribution rate spreadsheet and other documents and stand by the enterprises in the whole process.