On 9th July, the "Law on the Amendments to the Turkish Civil Aviation Law, Certain Laws, and the Presidential Decree No. 655 ("Law") came into force. Last week, we published an initial client alert introducing this topic, highlighting that the Law brings numerous new regulations in the field of transportation.
This alert is intended to provide our clients with a detailed overview of the amendments that have been introduced.
The Ministry of Transport and Infrastructure (the "Ministry") is now authorized to regulate fees for services provided to vessels by authorised companies, at ports, docks, and coastal facilities, including anchorage fees, pilotage, and tugboat services. The Ministry can set the anchorage fee up to 2 Turkish Liras per gross ton of the vessel, considering the voyage, anchorage duration, payment terms, and location. This maximum figure is subject to annual updates. The Ministry can determine and supervise pilotage and tugboat service fees within its jurisdiction, focusing on public interest and safety. Pilotage and tugboat services in the Istanbul and Canakkale Straits are exclusively provided by the Directorate General of Coastal Safety, prohibiting private entities from offering these services.
Authorised companies must remit a percentage of their gross income from pilotage, tug, mooring, and shifting services to the Ministry, with rates varying by location: 30% for services in Aliaga, Ambarli, Gemlik, Iskenderun, Kocaeli, and Mersin; 25% for services in Bandirma, Ceyhan, Izmir, Samsun, Tekirdag, Tuzla, and Yalova; 20% for services in Antalya, Canakkale, Istanbul, Karadeniz Eregli, and Zonguldak; 10% for services in other areas; and 20% for services in the Istanbul and Canakkale Straits. The State may adjust these rates from 5% to 40% based on sea traffic density. In cases where there is no demand for the provision of pilotage or tugboat services or if the authorised company terminates or cancels such services early, the Ministry may temporarily authorise another company to provide pilotage and tugboat services, taking into account the capacity and distance.
Additionally, a special tax on greenhouse gas emissions from cargo and passenger vessels visiting Turkish ports has been implemented. The fees collected from vessel owners will be calculated based on verified greenhouse gas emissions and the current carbon price in the European Union Emissions Trading System. These fees will be recorded as special revenue in the general budget and will be paid annually by the end of September for the previous year's total emissions.
This Law also makes significant changes to the Law on the Protection of Life and Property at Sea. Recent legislative changes reflect technological advancements and emphasize safe navigation in Turkish waters. All vessels must obtain permission from the Turkish authorities when sailing from a Turkish port, overseen by respective Harbour Master's Offices ("HM Offices"). Key updates include uniform application of vessel document review via an online database for clearance, entry, and departure monitoring. The inclusion of "navigational and communication devices" as mandatory equipment addresses safety concerns in the Turkish Straits. Anticipated secondary legislation from the General Directorate of Maritime Affairs ("GDMA") will detail inspection procedures and enforcement measures. These amendments ensure vessels meet safety and seaworthiness standards, emphasizing the importance of fully equipped navigational devices due to recent incidents jeopardizing the safety of the Straits.
A significant update introduced by the recent amendment is the distinction in the minimum accident insurance coverage for passenger vessels based on their operating routes—domestic versus international. Earlier, every passenger vessel was mandated to have insurance cover in place of at least SDR 250,000 per passenger. Under the new regulation, vessels licensed for international voyages must continue to maintain SDR 250,000 per passenger, whereas those operating exclusively on domestic routes are required to have SDR 100,000 per passenger. This change ensures that the insurance requirements are proportionate to the different risk levels associated with domestic and international travel.
New financial incentives have also been introduced through amendments to the Turkish International Ship Registry Law for vessels flying the Turkish flag. Previously, all owners of vessels and yachts registered with the Turkish International Ship Registry had to pay both a registration fee and a tonnage fee based on the vessel's net tonnage. The new amendments provide exemptions from these fees in certain circumstances. Specifically, fees will not be collected when there is a change in the vessel's ownership, shareholder structure, or company type. Additionally, vessels that are inherited will be exempt from the registration fee, and only proportional fees will be applied when transferring vessel shares. Furthermore, environmentally friendly vessels that do not use fossil fuels for propulsion (except for liquefied natural gas) are exempt from the registration fee and will only be required to pay 50% of the tonnage fee. These changes aim to boost the registration of Turkish-flagged vessels and encourage eco-friendly maritime practices.
The Law also brings substantial revisions to the Turkish Civil Aviation Law, enhancing the supervision and inspection powers of the Directorate General of Civil Aviation. All entities engaged in civil aviation, domestically and internationally, are subject to rigorous inspections. Expanded obligations now include facility and product inspections, and non-compliance with the regulations may result in suspension of operations.
New aviation security measures mandate stringent checks of passengers and their belongings at airports. Private security personnel, supervised by law enforcement, are now authorized to conduct searches. Security investigations and archive research will also be required for certain aviation personnel. Restrictions on constructions around airports are also introduced to prevent obstructions to air traffic and aviation safety risks. Administrative fines for civil aviation misdemeanours have been updated, with a minimum of 10,000 Turkish Lira and a maximum of 500,000 Turkish Lira. The Directorate General will also regulate Unmanned Aerial Vehicles ("UAVs"), imposing fines for non-compliance with established procedures and operating without authorization.
The comprehensive legislative changes introduced by the "Law on the Amendments to the Turkish Civil Aviation Law, Certain Laws, and the Presidential Decree No. 655" reflect Turkiye's commitment to enhancing the regulatory framework and operational safety across its transportation sector. These amendments underscore the country's dedication to adopting advanced safety measures and promoting sustainable practices within its maritime and aviation industries.
Originally published 30 July 2024
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.