WORLD TRADE
ORGANIZATIONG/STR/N/5/TUR
24 January 2000
(00-0267)
Working Party on
State Trading EnterprisesOriginal:  English
STATE TRADING
Updating Notification Pursuant to Article XVII:4(a) of the GATT 1994 and Paragraph 1
of the Understanding on the Interpretation of Article XVII
TURKEY
The following communication, dated 17 December 1999, has been received from the
Permanent Mission of Turkey.
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I. ENUMERATION OF STATE TRADING ENTERPRISES
A. TURKISH STATE MONOPOLY (TEKEL )
HS Code Description of Goods
22.03 Beer made from malt
22.04 Wine of fresh grapes, including fortified wines;
grape must other than that of heading No. 20.09
(excluding 2204.10 and 2204.30)
22.05 Vermouth and other wine of fresh grapes
flavoured with plants or aromatic substances
22.06 Other fermented beverages (for example, cider,
perry, mead) mixtures of fermented beverages
and non-alcoholic beverages not elsewhere
specified or included
22.07 Undenatured ethyl alcohol of an alcoholic
strength by volume of 80 per cent vol. or higher;
ethyl alcohol and other spirits, denatured, of anystrength
22.08 Undenatured ethyl alcohol of an alcoholic
strength by volume of less than 80 per cent vol.;
spirits, liqueurs and other spirituous beverages
(excluding 2208.30)
B. TURKISH RED CRESCENT
HS Code Description of Goods
1211.90.95.00.14 Cinchona bark
2827.60.00.30.00 Potassium iodide
2939.21.29 Alkaloids of cinchona and their derivationsG/STR/N/5/TUR
Page 2
II. REASON AND PURPOSE FOR INTRODUCING AND MAINTAINING STATE
TRADING ENTERPRISES
A. TURKISH STATE MONOPOLY (TEKEL )
1. The main purpose of the Enterprise is to reduce the negative consequences of alcohol
consumption by controlling flow of alcoholic beverages and spirits.  The Enterprise which has a
monopoly right does not seek profit on behalf of the Government.  Its purchase policy is maintained
by taking into consideration the domestic demand.  Also, the most important function of the
Enterprise is to prevent illegal trade and illegal profits by effective control over the trade of alcohol
and alcoholic beverages.
2. The Enterprise (TEKEL) has exclusive rights with regard to importation and domestic sale of
certain spirits and beverages containing alcohol and ethyl alcohol (liquors and other spirituous
beverages, wine and fruit wine, beer and ethyl alcohol) and production of some alcoholic beverages
other than beer, wine and fruit wine.  On the other hand, TEKEL does not have monopoly rights on
the importation of whisky and natural sparkling wine (Law No. 4250 of 1942).
B. TURKISH RED CRESCENT
1. The purpose of the exclusive right granted to the TRCS to import certain goods listed in
section I.B is to enable the Institution to fight the diseases of malaria and syphilis.
2. TRCS which is a voluntary, non-profit aid organization in the field of health has exclusive
rights to import cinchona bark, potassium iodide and alkaloids of cinchona and their derivations into
Turkey (Law No. 2767 on the Drugs for Malaria and Syphilis of 1935).
III. DESCRIPTION OF THE FUNCTIONING OF STATE TRADING ENTERPRISES
A. TURKISH STATE MONOPOLY (TEKEL )
• The only privilege granted to TEKEL is stated in Section II.
• This Enterprise does not have any privilege in its commercial activities compared with other
private firms.
• The importation of natural sparkling wine and whisky by importers and the exportation of malt
and wine by their producers are free (Law No. 4250).
• The volume of import/export is determined with respect to the domestic/foreign demand.
• The export prices are determined by TEKEL according to:
- The cost of production;  and
- The tax rates on alcoholic beverages in the importing countries.
• The domestic sale prices of imported goods are determined by TEKEL according to:
- The c.i.f. price of imported beverages;
- The tax rates on these products;
- The domestic sale prices of like products for certain beverages.G/STR/N/5/TUR
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• TEKEL does not have any long-term contractual obligations.  There is no governmental influence
on the import and export level of this Enterprise.
B. TURKISH RED CRESCENT (TRCS)
• TRCS is a voluntary aid organization which has been performing for 130 years.  Its activities are
subjected to the commercial provisions of private law.  TRCS carries out certain humanitarian and
health missions during ordinary or extraordinary circumstances.
• TRCS has no further privileges other than those cited in Section II.
• The volume of importation is determined according to the domestic needs.
• The domestic sale prices of imported goods are determined by TRCS as the sum of cost price and
a reasonable amount of profit.
IV. STATISTICAL INFORMATION
See attached Tables.G/STR/N/5/TUR
Page 4 TABLE 1.A
State Trading:  The Turkish State Monopoly (Tekel)
Statistical Information:  Imports
Description of
products (incl. HS
Nos.)Total quantity imported
(Thousand lts)Total quantity imported by state
trading enterprises
(Thousand lts)Average import price
(US$/Lt)Average representative
domestic sales price
(US$/Lt)National production
(Thousand lts)
1996 1997 1998 1996 1997 1998 1996 1997 1998 1996 1997 1998 1996 1997 1998
22.03  Beer 84.5 417.9 477.7 164.3 378.6 1.41 0.89 3.41 3.89 3.27 668,000 735,880 812,162
22.04  Wine 168.2 174.4 209.7 79.1 164.0 1.63 1.35 17.51 8.65 7.70 40,021 43,217 47,808
22.05  Vermouth etc. 22.8 14.4 53.3 22.8 14.4 45.3 0.99 1.48 1.91 1.62 1.96 1.76 246 245 254
22.06  Other
fermented beverages0.9 0.0
22.07  Alcohol 2,806.9 15,687.3 4,046.1 2,761.9 15,683.0 4,046.1 2.93 2.41 2.10 1.57 1.86 1.71 15,855 9,952 5,338
22.08  Other
alcoholic drinks2,624.1 2,332.3 2,777.3 974.4 472.1 413.8 12.11 5.17 7.66 5.80 6.88 5.79 89,330 85,992 93,555G/STR/N/5/TUR
Page 5TABLE I.B
State Trading:  Turkish Red Crescent Society (Kizilay)
Statistical Information:  Imports
Description of
products (incl. HS
Nos.)Total quantity imported Total quantity imported by state trading
enterprise Average imported price (f.o.b.)Average representative domestic
sales price
1996 1997 1998 1996 1997 1998 1996 1997 1998 1996 1997 1998
1211.90.95.00.14C i n c h o n a  b a r k - --- - - ---- - -
2827.60.00.30.00Potassium iodide15,452 kg. 41,365 kg. 10,334 kg. 15,452 kg. 41,365 kg. 10,334 kg. 18.63
US$/kg.17
US$/kg.22.38
US$/kg.21
US$/kg.21
US$/kg.21
US$/kg.
2939.21.11.00.00
Quinine HCL- --- - - ---- - 5 4
US$/kg.
2939.21.90.00.00
QuinidineArabogalatone
Sulfate280 kg. 150 kg. 150 kg. 280 kg. 150 kg. 150 kg. 1,930
FFR/kg.1,930
FFR/kg.1,930
FFR/kg.2,425
FFR/kg.2,425
FFR/kg.2,425
FFR/kg.
2939.21.90.00.00Quinidine Sulfate200 kg. 200 kg. 100 kg. 200 kg. 200 kg. 100 kg. 235
DM/kg.235
DM/kg.235
DM/kg.300
DM/kg.300
DM/kg.300
DM/kg.
2939.29.00.00.11QuinidinePhenyethyl
Barbiturate240 kg. 200 kg. 100 kg. 240 kg. 200 kg. 100 kg. 1,400
FFR/kg.1,400
FFR/kg.1,400
FFR/kg.1,800
FFR/kg.1,800
FFR/kg.1,800
FFR/kg.G/STR/N/5/TUR
Page 6TABLE II
State Trading:  Turkish State Monopoly (Tekel)
Statistical Information:  Exports
Desc. of
products
(incl. HS
Nos.)Total quantity exported
(Thousand lts.)Total quantity exported by state
trading enterprise
(Thousand lts.)Average procurement price
(US$/Lt.)Average representative
domestic sales price
(US$/Lt.)Average export priceNational production
(Thousand lts.)
1996 1997 1998 1996 1997 1998 1996 1997 1998 1996 1997 1998 1996 1997 1998 1996 1997 1998
22.03
Beer55,901.8 42,224.5 33,637.8 0.27 0.49 0.29 0.57 0.59 0.55 668,000 735,880 812,162
22.04
Wine3,492.4 10,816.9 4,807.9 466.1 7,995.0 1,296.9 0.60 0.48 0.50 0.99 1.30 1.11 1.01 0.37 1.22 40,021 43,217 47,808
22.05
Vermouthetc.249.1 37.3 0.5 26.4 0.79 0.91 0.82 1.62 1.96 1.75 2.56 246 245 254
22.06
Otherfermented
beverages20.9 21.3
22.07
Alcohol49.0 1,622.0 13.0 40.6 30.6 11.8 1.11 1.19 0.81 1.57 1.86 1.70 0.73 0.72 15,855 9,952 5,338
22.08
Otheralcoholicdrinks2,928.8 2,316.4 2,196.2 1,231.2 1,772.6 1,745.5 1.25 1.45 1.28 5.80 6.88 5.92 5.60 2.90 3.37 89,330 85,992 93,555G/STR/N/5/TUR
Page 7TABLE III
State Trading:  Turkish State Monopoly (Tekel)
Statistical Information:  Domestic Activities
Description of
products (incl.
HS Nos.)Domestic purchases by state
trading enterprise
(Thousand lts)National production
(Thousand lts)Domestic sales by state trading
enterprise
(Thousand lts)National consumption
(Thousand lts)
1996 1997 1998 1996 1997 1998 1996 1997 1998 1996 1997 1998
22.03  Beer 668,000 735,880 812,162 8,081 6,041 12,040 673,000 731,041 654,040
22.04  Wine 40,021 43,217 47,808 14,146 11,551 14,476 31,968 26,446 32,871
22.05Vermouth etc.246 245 254 245 249 266 245 249 266
22.06 Other
fermented
beverages
22.07 Alcohol 11,258 14,727 15,159 15,855 9,952 5,338 18,522 11,671 6,487 18,522 11,671 6,487
22.08 Other
alcoholic
drinks89,330 85,992 93,555 83,648 79,526 90,704 83,404 79,277 90,437
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