Turkey
Answer ... The National Ship Registry (NSR) registers vessels that meet the Turkish Commercial Code’s (TCC) standards for flying a Turkish flag
Only commercial ships can register with the Turkish International Ship Registry (TISR). Imported ships are subject to a tonnage restriction. The Ministry of Transport and Infrastructure maintains a list of special purpose ships and other craft, which is updated on a regular basis. The same rules that govern the NSR also apply to the TISR. The shipowner must be a real person residing in Turkey or a judicial person founded or incorporated under Turkish law in order for a ship to be eligible for registration at the TISR. The real person’s nationality and the company’s structure are irrelevant. As a result, ships that would not be allowed to register with the NSR because the shipowner is a foreign national or most of the board of directors is made up of foreigners can nevertheless register with the TISR. The Turkish flag must be flown by all ships with this registration. However, the extra requirements for the NSR must be met in order to be eligible for cabotage rights. The benefits of registration include:
- income tax and corporate tax exemptions for earnings from the sale or transfer of registered vessels; and
- an exemption from stamp duty, among a variety of other fees, for purchase, sale, mortgage, registration or loan contracts.
Ships under construction are registered with the New Building Registry. In practice, ‘ships under construction’ are commonly referred to as ‘new buildings’ and the unique register set up for them is known as the ‘New Building Register’. Aside from ownership, the only right in rem that can be recorded in this register is a mortgage on a new building.
A ‘Special (Flag In) Register’ keeps track of foreign ships that are temporarily allowed to fly the Turkish flag. The TCC allows flag-in and flag-out in Article 941. However, this special registry is not deemed a registry in the sense of private law. Therefore, no rights in rem can be generated or transferred by its use. This kind of registry is sometimes referred to as a ‘bareboat registry’ in Turkish practice, because the bareboat charter is often believed to be the principal agreement under which a ship may be handed to Turkish interests.
Commercial vessels with a gross tonnage of less than 18 tons and non-commercial vessels should register with the Home Port Registry. This registry was intended primarily for pleasure craft, yachts and other watercraft, as well as all ships and vessels of inland navigation used for inland sea transportation.
To be registered with either the NSR or the TISR, a Turkish ship that was previously registered with a foreign ship registry must submit documents proving that it is no longer registered with the foreign ship registry. If a ship requiring registry is already registered abroad, the shipowner must cancel that registration and explain the circumstances. If this is impossible, the requirement can be waived.
Turkey
Answer ... The TSR registers vessels that meet the TCC’s standards for flying a Turkish flag. If the ship is owned by:
- one real person, that person must be a Turkish national;
- several real persons, the majority of partners must be Turkish nationals;
- legal persons in the nature of associations and foundations, the majority of the board of directors must consist of Turkish nationals;
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legal persons in the nature of commercial companies:
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- the majority of the board of directors must consist of Turkish nationals and the voting majority must be in the hands of Turkish nationals; and
- joint stock companies must demonstrate that the majority of shares are issued to Turkish nationals, with transfer subject to approval by the board of directors; or
- a maritime partnership, the majority of the shares must be in the hands of Turkish nationals and the majority of the board of directors must consist of Turkish nationals.
According to the registry’s strict nationality rules, only vessels owned by Turkish citizens or corporations with a Turkish majority in both shareholding and board participation are eligible to be registered with the NSR. The following are not permitted to register in the NSR:
- foreign vessels;
- Turkish vessels registered with a foreign ship registry;
- navy warships;
- auxiliary vessels; and
- vessels dedicated solely to performing a public service belonging to the state, special provincial administrations, municipalities, villages or other public legal entities.
Turkey
Answer ... Under Turkish law, the Ministry of Transport and Infrastructure is the primary body that administers the shipping registry. Registry offices are overseen by the Harbour Master’s Office. For Turkish vessels, a ship registry is kept in places deemed appropriate by the Ministry of Transport and Infrastructure. There are registry offices in the following cities: Antalya, Bandırma, Çanakkale, İskenderun, İstanbul, İzmir, Mersin, Samsun, Trabzon and Zonguldak.
The authorised registry office is determined according to a vessel’s home port log. The TISR has its headquarters in Istanbul and a liaison office in Izmir. The Harbour Master’s Office maintains the home port log registry; whereas the mayor’s office of the relevant city maintains the home port log registry for boats in inland waterways.
Turkey
Answer ...
- The name of the vessel;
- The type and main material used in its construction;
- The home port log;
- The place where it was built;
- The year it was built;
- Its machinery;
- Its owner and history of holders of real rights on the vessel (eg, ownership, mortgage and usufruct rights); and
- Annotations, objections and restrictions on dispositions.
Anyone can examine the records in the registry and get copies of them because the ship registry is available to the public.
Turkey
Answer ... Ship registration applications should be made with the relevant ship registry at the Harbour Master’s Office. Some of the following documents may be requested by the authorities:
- a building certificate;
- a tonnage certificate;
- an apostilled and translated bill of sale;
- the shipowner’s signature circular;
- the shipowner’s articles of association;
- shareholder information;
- the shipowner’s tax registration certificate;
- a customs clearance certificate;
- the original deletion certificate;
- a free of encumbrances certificate;
- a delivery and acceptance protocol; and
- a flag certificate.
The records in the ship registry constitute legal presumptions that facilitate proof of existence of rights on the ship. If a right is removed from the registry, that right is considered non-existent.
Turkey
Answer ... Under both the NSR and the TISR, in order to establish a ship mortgage:
- the shipowner of the vessel and the creditor must agree on the establishment of a mortgage; and
- the mortgage must be included in the ship register (TCC, Article 1015).
The mortgage agreement must be executed in writing and the signatures must be notarised. In terms of the degree of mortgage, the regulations of the TCC on immovable pledges apply, as stated in Article 1017 of the TCC. In this situation, the TCC’s fixed degree system also applies to ship mortgages. Under Turkish law, the first degree first rank system is invalid. Contracts for a mortgage in relation to a vessel that is registered with the TISR are exempt from stamp duty and some other tax duties. An agreement on the establishment of a mortgage can also be made by the registry office. An agreement that is not made in accordance with one of these forms is void.
Mortgage rights arise at the time of ship registration. When a mortgage is recorded in the registration, it is deemed to be public information. When a mortgage is deregistered, it is deemed to no longer exist.