WORLD TRADE
ORGANIZATIONG/STR/N/7/TUR
G/STR/N/8/TUR
18 March 2003
(03-1580)
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 12 March 2003, has been received from the Permanent
Mission of Turkey.
_______________G/STR/N/7/TUR
G/STR/N/8/TUR
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STATE TRADING (G/STR/N/7/TUR)
New and Full Notification Pursuant to Article XVII:4(a) of the GATT and Paragraph 1 of the
Understanding on the Interpretation of Article XVII
TURKEY
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;  grapes 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 alchol and other spirits, denatured, of any
strength
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 derivations
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 the 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 effectively controlling the trade of alcoholand 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 beveragesG/STR/N/7/TUR
G/STR/N/8/TUR
Page 3
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 rights granted to the TRCS to import certain goods listed in
section I.B is to enable the institution to fight against 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 customs duty and 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 customs duty and tax rates on these products;
• The domestic sale prices of like products for certain beverages.
− 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 functioning for 130 years.  Its activities
are subject 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.G/STR/N/7/TUR
G/STR/N/8/TUR
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− 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/7/TUR
G/STR/N/8/TUR
Page 5ANNEX I
TABLE I.A
State Trading:  The Turkish State Monopoly (TEKEL)
STATISTICAL INFORMATION:  IMPORTS
Total quantity imported
(Thousand l.)Total quantity imported by
state trading enterprise
(Thousand l.)Average import price
(US$/L.)Average representative
domestic sales price
(US$/L.)National production
(Thousand l.)Description of
product(s)
(including HS
number(s))1998 1999 2000 1998 1999 2000 1998 1999 2000 1998 1999 2000 1998 1999 2000
22.03 Beer 478 743 576 478 743 576 1.2 1.2 0.9 685.779 675.960 689.349
22.04 Wine 210 105 216 210 78 216 2.1 2.3 1.6 34.463 25.993 23.311
22.05 Vermouth etc. 53 10 32 53 10 32 3.0 2.5 2.2 14.4 28.7 19.5 254 253 12
22.06 Other fermented
beverages
22.07 Alcohol 4.046 24 38 4.014 22 38 0.7 3.4 1.6 2.0 1.6 1.6 5.338 4.857 4.774
22.08 Other alcoholicdrinks416 769 521 413 343 521 0.3 5.6 9.5 11.1 36.0 8.5 93.617 94.513 80.053G/STR/N/7/TUR
G/STR/N/8/TUR
Page 6 TABLE I.B
State Trading:  Turkish Red Crescent Society (KIZILAY)
STATISTICAL INFORMATION:  IMPORTS
Total quantity importedTotal quantity imported by
state trading enterpriseAverage import price (FOB) Average representative
domestic sales priceDescription of product(s)
(including HS number(s))
1998 1999 2000 1998 1999 2000 1998 1999 2000 1998 1999 2000
1211.90.95.00.14
Cinchona bark
2827.60.00.30.00
Potassium iodide10,454
kg70,640
kg51,219
kg10,454
kg70,640
kg51,219
kg22,38
US$/kg20.83
US$/kg19,36
US$/kg21
US$/kg27.45
US$/kg28.50
US$/kg
2939.21.11.00.00 QuinineNCL54
US$/kg
2939.21.90.00.00 QuinidineSulfate350 kg 100 kg 230 kg 350 kg 100 kg 230 kg 217
DM/kg239
DM/kg1930
FFR/kg300
DM/kg300
DM/kg3190
FFR/kg
2939.29.00.00.11Quinidine PhenyethylBertiturate100 kg 30 kg 100kg 30 kg 1,400
FFR/kg1,400
FFR/kg1,800
FFR/kg2,417
FFR/kgG/STR/N/7/TUR
G/STR/N/8/TUR
Page 7TABLE II
State Trading:  The Turkish State Monopoly (TEKEL)
STATISTICAL INFORMATION:  EXPORTS
Total quantity imported
(Thousand l.)Total quantity imported by
state trading enterprise
(Thousand l.)Average import price (US$/L.) Average representative
domestic sales price
(US$/L.)Average export price National production (Thousand
l.)Description of
product(s)
(including HS
number(s))
1998 1999 2000 1998 1999 2000 1998 1999 2000 1998 1999 2000 1998 1999 2000 1998 1999 2000
22.03 Beer 33.638 25.447 25.734 685.779 675.960 689.34
22.04 Wine 4.659 4.240 5.836 1.297 894 5.692 0.50 0.51 0.70 3.07 4.11 2.56 0.36 0.36 0.27 34.463 25.993 23.31
22.05 Vermouth etc. 1 0 0 0 0.85 5.99 0.02 254 253 1
22.06 Other
fermented beverages030
22.07 Alcohol 13 906 10 13 24 10 0.81 0.81 0.60 1.70 1.62 1.55 0.73. 0.73 0.74 5.338 4.857 4.77
22.08 Other
alcoholic drinks2.196 2.560 2.716 1.746 19 1.654 1.38 1.61 1.50 7.14 12.32 8.14 3.00 2.98 2.92 93.617 94.513 80.053G/STR/N/7/TUR
G/STR/N/8/TUR
Page 8 TABLE III
State Trading:  The Turkish State Monopoly (TEKEL)
STATISTICAL INFORMATION:  DOMESTIC ACTIVITIES
Domestic purchases by State
trading enterprise (Thousand
l.)National production
(Thousand l.)Domestic sales by State Trading
Enterprise (Thousand l.) National consumption
(Thousand l.)Description of product(s)
(including HS
number(s))
1998 1999 2000 1998 1999 2000 1998 1999 2000 1998 1999 2000
22.03 Beer 685.779 675.960 689.349 12.04 0 12.850 9.365 725.865 686.450 654.040
22.04 Wine 34.463 25.993 23.311 12.47 6 10.076 6.864 21.362 29.850 30.871
22.05 Vermouth etc. 254 253 12 266 217 39 266 217 39
22.06 Other fermented
beverages
22.07 Alcohol 5.338 4.857 4.774 6.487 5.013 4.967 6.487 5.013 4.967
22.08 Other alcoholic
drinks93.617 94.513 80.053 89.427 87.02 4 79.475 89.427 87.024 79.475G/STR/N/7/TUR
G/STR/N/8/TUR
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STATE TRADING - UPDATING NOTIFICATION OF 2002 (G/STR/N/8/TUR)
New and Full Notification Pursuant to Article XVII:4(a) of the GATT and Paragraph 1 of the
Understanding on the Interpretation of Article XVII
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;  grapes 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 alchol and other spirits, denatured, of any
strength
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 derivations
II. REASON AND PURPOSE FOR INTRODUCING AND MAINTAINING STATE
TRADING ENTERPRISES
A. TURKISH STATE MONOPOLY (TEKEL)
1. The exclusive and special rights of TEKEL on the production, importation and exportation of
the goods listed in Section IA have been terminated by the Laws No. 4619 and 4733.
2. By the promulgation of the Law No. 4619 (Official Gazette of 20 January 2001, No. 24293),
the production, trade, distribution and fixing price of alcohol and alcoholic beverages are set free on
certain conditions.  According to this Law, firms can freely fix prices and continue their business
activities provided that their annual production, sale or importation of alcoholic beverages must not be
less than the level designated in the Provisional Article 1 of the Law No. 4619.
3. In addition to this, a new autonomous board, namely "Tobacco, Tobacco Products and
Alcoholic Beverages Market Monitoring Board" has been established by the Law No. 4733 (OfficialGazette of 9 January 2002, No. 24635) for monitoring and supervising of the production, sale and
trade of alcoholic products.G/STR/N/7/TUR
G/STR/N/8/TUR
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B. TURKISH RED CRESCENT
1. There have been no changes in the activities of the Turkish Red Crescent (KIZILAY) since
the previous notification.  The statistical inform ation about the imports of KIZILAY is included in
Annex tables.
III. DESCRIPTION OF THE FUNCTIONING OF STATE TRADING ENTERPRISES
A. TURKISH STATE MONOPOLY (TEKEL)
− TEKEL does not have any right or privilege in its production, marketing and other
commercial activities compared with other private firms.
− The volume of import/export is determined with respect to the domestic/foreign demand.
− Like other firms, TEKEL takes into account the domestic and foreign market conditions, the
cost of raw materials, prices of labour and rates of taxes when determining the level of
production, the quantity and prices of imported and exported goods.
− Currently, TEKEL is the sole producer in high alcoholic beverages market and its shares in
wine and beer markets are 23 per cent and 1,5 per cent respectively.
IV. STATISTICAL INFORMATION
See attached tables.G/STR/N/7/TUR
G/STR/N/8/TUR
Page 11ANNEX II
TABLE I.A
State Trading:  The Turkish State Monopoly (TEKEL)
STATISTICAL INFORMATION:  IMPORTS
Total quantity imported
(Thousand l.)Total quantity imported by
state trading enterprise
(Thousand l.)Average import price
(US$/L.)Average representative
domestic sales price
(US$/L.)National production
(Thousand l.)Description of
product(s)
(including HS
number(s))1999 2000 2001 1999 2000 2001 1999 2000 2001 1999 2000 2001 1999 2000 2001
22.03 Beer 743 576 154 743 576 101 1,2 0,9 0,1 675.960 689.349 771.823
22.04 Wine 105 216 143 78 216 56 2,3 1,6 1,1 25.993 23.311 28.234
22.05 Vermouth etc. 10 32 34 10 32 2,5 2,2 28,7 19,5 253 12
22.06 Other fermented
beverages
22.07 Alcohol 24 38 30 22 38 3,4 1,6 1,6 1,6 4.857 4.774 4.665
22.08 Other alcoholicdrinks769 521 440 343 521 44 5,6 9,5 5,5 36,0 8,5 16,5 94.513 80.053 79.709G/STR/N/7/TUR
G/STR/N/8/TUR
Page 12 TABLE I.B
State Trading:  Turkish Red Crescent Society (KIZILAY)
STATISTICAL INFORMATION:  IMPORTS
Total quantity importedTotal quantity imported by
state trading enterpriseAverage import price (FOB) Average representative
domestic sales priceDescription of product(s)
(including HS number(s))
1999 2000 2001 1999 2000 2001 1999 2000 2001 1999 2000 2001
1211.90.95.00.14
Cinchona bark
2827.60.00.30.00
Potassium iodide70,640
kg51,219
kg15,815
kg70,640
kg51,219
kg15,815
kg20.83
US$/kg19,36
US$/kg18.03
US$/kg27.45
US$/kg28.50
US$/kg25.15
US$/kg
2939.21.11.00.00 Quinine
NCL250 kg 250 kg 140
US$/kg164
US$/kg
2939.21.90.00.00 QuinidineSulfate100 kg 230 kg 159,3
kg100 kg 230 kg 159,3
kg239
DM/kg1930
FFR/kg179
EUR/kg300
DM/kg3190
FFR/kg250
EUR/kg
2939.29.00.00.11Quinidine PhenyethylBertiturate30 kg 30 kg 1,400
FFR/kg2,417
FFR/kgG/STR/N/7/TUR
G/STR/N/8/TUR
Page 13TABLE II
State Trading:  The Turkish State Monopoly (TEKEL)
STATISTICAL INFORMATION:  EXPORTS
Total quantity imported
(Thousand l.)Total quantity imported by
state trading enterprise
(Thousand l.)Average import price (US$/L.) Average representative
domestic sales price
(US$/L.)Average export price National production (Thousand
l.)Description of
product(s)
(including HS
number(s))
1999 2000 2001 1999 2000 2001 1999 2000 2001 1999 2000 2001 1999 2000 2001 1999 2000 2001
22.03 Beer 25.447 25.734 27.505 675.960 689.349 771.823
22.04 Wine 4.240 5.836 4.799 894 5.692 4.714 0,51 0,70 0,50 4,11 2,56 1,41 0,36 0,27 0,25 25.993 23.311 20.234
2 2 . 0 5  V e r m o u t h  e t c . 0050 0 , 8 5 5 , 9 9 0 , 0 2 2 5 3 1 2
22.06 Other
fermented beverages300
22.07 Alcohol 906 10 2.068 24 10 10 0,81 0,60 0,66 1,62 1,55 1,32 0,73 0,74 0,56 4.857 4.774 466.4
22.08 Other
alcoholic drinks2.560 2.716 3.093 19 1.654 1.811 1,61 1,50 1,16 12,32 8,14 6,40 2,98 2,92 3,04 94.513 80.053 79.709G/STR/N/7/TUR
G/STR/N/8/TUR
Page 14 TABLE III
State Trading:  The Turkish State Monopoly (TEKEL)
STATISTICAL INFORMATION:  DOMESTIC ACTIVITIES
Domestic purchases by State
trading enterprise (Thousand
l.)National production
(Thousand l.)Domestic sales by State Trading
Enterprise (Thousand l.) National consumption
(Thousand l.)Description of product(s)
(including HS
number(s))
1999 2000 2001 1999 2000 2001 1999 2000 2001 1999 2000 2001
22.03 Beer 675.960 689.349 771.823 12.85 0 9.365 12.707 686.450 654.040 692.300
22.04 Wine 25.993 23.311 28.234 10. 076 6.864 7.729 29.850 30.871 26.755
22.05 Vermouth etc. 253 12 217 39 23 217 39 23
22.06 Other fermented
beverages
22.07 Alcohol 4.857 4.774 4.664 5.013 4.967 4.717 5.013 4.967 4.717
22.08 Other alcoholic
drinks94.513 80.053 79.709 87.024 79.47 5 76.197 87.024 79.475 76.197
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