New regulations for collateral amounts in alcohol and tobacco trade

Prepared by the Ministry of Agriculture and Forestry, the "Regulation on the Procedures and Principles Regarding the Collection of Collateral from Those Engaged in the Production and/or Trade of Tobacco, Tobacco Products, Macarons, Leaf Cigarette Paper, Cigarette Filters, Alcohol, and Alcoholic Beverages" has been published in the Official Gazette and entered into force.

FROM WHOM WILL IT BE COLLECTED?

Accordingly, these amounts will be collected from real and legal persons who hold a facility establishment compliance certificate and/or production and activity compliance certificate in the tobacco products, macaron, leaf cigarette paper, and cigarette filter sectors, as well as those who have applied to obtain these certificates or to take over a production facility.

In the cigarette category, a collateral of 40 million liras will be collected from those with an annual theoretical production capacity of up to 20 billion units in a single shift, 45 million liras from those with 20-40 billion units (including 40 billion), and 50 million liras from those with more than 40 billion units.

In the macaron category, those with an annual theoretical production capacity of up to 3 billion units (including 3 billion) in a single shift will provide 40 million liras in collateral, those with 3-4 billion (including 4 billion) will provide 45 million liras, and those with more than 4 billion units will provide 50 million liras.

In the hookah tobacco product category, a collateral of 5 million liras will be requested from those with an annual theoretical production capacity of up to 300 tons (including 300 tons) in a single shift, 10 million liras from those with 300-600 tons (including 600 tons), and 15 million liras from those with more than 600 tons.

In the cigar and cigarillo category, a collateral of 10 million liras will be collected from those with an annual theoretical production capacity of up to 50 tons (including 50 tons) in a single shift, 15 million liras from those with 50-100 tons (including 100 tons), and 20 million liras from those with more than 100 tons.

In the roll-your-own tobacco product category, those with an annual theoretical production capacity of up to 500 tons in a single shift will provide 5 million liras in collateral, those with 500-1000 tons (including 1000 tons) will provide 10 million liras, and those with more than 1000 tons will provide 15 million liras.

In the pipe tobacco product category, a collateral of 4 million liras will be requested from those with an annual theoretical production capacity of up to 200 tons (including 200 tons) in a single shift, 8 million liras from those with 200-400 tons (including 400 tons), and 10 million liras from those with more than 400 tons.

In the leaf cigarette paper category, a collateral of 3 million liras will be requested from those with an annual theoretical production capacity of up to 3 billion units (including 3 billion) in a single shift, and 5 million liras from those with more than 3 billion units.

In the cigarette filter category, a collateral of 3 million liras will be collected from those with an annual theoretical production capacity of up to 5 billion units (including 5 billion) in a single shift, and 5 million liras from those with more than 5 billion units.

For those holding a Tobacco Processing Facility Establishment Compliance Certificate and/or Tobacco Processing Facility Activity Compliance Certificate, as well as real and legal persons who have applied to obtain these certificates or to take over a processing facility, a collateral of 5 million liras will be requested from those with a daily theoretical production capacity of up to 50 tons (including 50 tons), and 10 million liras from those with more than 50 tons.

IN THE ALCOHOL SECTOR

In the alcoholic beverage sector, collateral will be collected from the aforementioned real and legal persons as follows: 500 thousand liras from those with an annual production capacity of up to 20 thousand liters (including 20 thousand liters) in the fermented alcoholic beverage main category, 1 million liras from those with 20 thousand to 100 thousand liters (including 100 thousand liters), 2 million liras from those with 100 thousand to 300 thousand liters (including 300 thousand liters), 4 million liras from those with 300 thousand to 2 million liters (including 2 million liters), 8 million liras from those with 2 million to 10 million liters (including 10 million liters), 15 million liras from those with 10 million to 50 million liters (including 50 million liters), and 50 million liras from those with more than 50 million liters.

In the distilled alcoholic beverage main category, a collateral of 4 million liras will be requested from those with an annual production capacity of up to 2 million liters (including 2 million liters), 8 million liras from those with 2 million to 5 million liters (including 5 million liters), 12 million liras from those with 5 million to 10 million liters (including 10 million liters), 15 million liras from those with 10 million to 50 million liters (including 50 million liters), and 50 million liras from those with more than 50 million liters.

The regulation also determined the collateral amounts to be collected from those holding a distribution authorization certificate and distribution compliance certificate for the import of alcohol and alcoholic beverages, as well as those who have applied to obtain these certificates.

CHANGES BASED ON CIRCUMSTANCES

Collateral amounts will be updated in the event of changes in the annual capacities of tobacco, tobacco products, macaron, leaf cigarette paper, cigarette filter, alcohol, and alcoholic beverage manufacturing companies within the scope of project revision and/or project modification, as well as changes in the operating volumes of alcoholic beverage importing companies.

The total amount of collateral to be collected from real and legal persons operating in these sectors cannot exceed 50 million liras.

No additional collateral will be collected for the Tobacco Trade Authorization Certificate from real or legal persons who have a production facility or are in the process of establishing a facility in any of the categories of tobacco processing facility, cigarette, roll-your-own tobacco product, hookah tobacco product, pipe tobacco product, or cigar and cigarillo in the tobacco and/or tobacco products sector.

No collateral will be requested due to their activities within the scope of the regulation from administrations and institutions, local administrations and enterprises established by these administrations, other public institutions, boards, supreme boards, and organizations established by special law, state-owned economic enterprises and their subsidiaries, institutions and enterprises, other partnerships where more than 50 percent of the capital belongs to the public, and firms belonging to public institutions and organizations and their affiliates.

For the collateral to be provided by real and legal persons currently in operation as of today under the relevant article, letters of guarantee must be submitted to the department presidency within 90 days, and other forms of collateral must be submitted to the accounting unit.