Subparagraph (g) of the second paragraph of Article 3 regulating the Bank Payment Obligation, which is one of the payment methods used in export transactions in accordance with the Communiqué on the Decree No. 32 Regarding Protection of the Value of Turkish Currency (Communiqué No: 2018-32/48) ("Communiqué") published in the Official Gazette dated 4.9.2018 and numbered 30525, has been repealed by the Official Gazette dated 28.8.2020 and numbered 31227.
The repealed clause of the Communiqué is as follows:
ARTICLE 3 - (1) (Change: OG-31/12 / 2019-30995 5. Repeating) Costs relating to export transactions carried out by residents in Turkey shall be transferred or brought directly and without delay to the intermediary bank following the payment of the importer. The period for bringing the fees to the country cannot exceed 180 days from the actual date of issue.
(2) Costs for export transactions shall be brought to the country according to one of the following payment methods.
- a) Payment by Letter of Credit,
- b) Payment against Documents,
- c) Payment against Goods,
- d) Payment by Letter of Credit through Acceptance Credit,
- e) Payment against Documents through Acceptance Credit,
- f) Payment against Goods through Acceptance Credit,
- g) Advance Payment,
g) Bank Payment Obligation
What is the purpose of removing the Bank Payment Obligation?
Due to the significant depreciation of the Turkish Lira in recent years, the need for the dollar currency in the domestic market has increased. After such increase in need, it was decided to abolish the Bank Payment Obligation ("BPO") in exports, in order to bring the foreign currency obtained in the export processes to the domestic market faster, without seeking the compatibility of the documents between the importer's bank and the exporter's bank.
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.
