Support to Be Provided for Overseas Logistics Centers Within Export Development Scope

Principles announced for support of overseas logistics centers' expenses through Support and Price Stability Fund, with the aim of establishing infrastructure that will stabilize export performance in important foreign markets alongside rapid and comprehensive export flows.

The Presidential Decree on Support for Overseas Logistics Centers (YDLM) was published in the Official Gazette and entered into force. According to the decree, 70 percent support will be provided for setup, investment including IT, license and permit expenses for the establishment of YDLMs, up to a maximum of 5 million dollars per center. The support rate and amount for rent, commission and operating expenses including taxes for units opened directly or through companies or branches operating abroad have been set at 70 percent for the first two years, 50 percent for subsequent years, and a maximum of 3 million dollars annually per YDLM. Expenses for advertising, promotion and marketing activities and consulting services, as well as gross wages for a maximum of 10 employees hired in accordance with conditions to be determined by the Ministry of Commerce, not exceeding 100,000 dollars per person annually, will receive 70 percent support for the first two years, 50 percent for subsequent years, and a maximum of 700,000 dollars annually per YDLM. Support for rent, commission and operating expenses as well as advertising, promotion and marketing activity expenses may be utilized for five years. Users' customs clearance and other expenses as determined by circular will receive a maximum of 100,000 dollars in annual support, with a support period of no more than five years. The Ministry may grant an additional support period of up to five years to those with average capacity utilization rate of at least 50 percent over the last 3 years, provided that the total support period does not exceed 10 years.

Applications to be submitted to Ministry of Commerce

For overseas logistics centers to be included in the support scope, feasibility reports must be prepared by cooperatives, and applications with project details specified in the circular must be submitted to the Ministry of Commerce, and the project must be deemed appropriate by the Ministry. Logistics centers included in the support scope will be subject to coordination and supervision by trade offices, attachés or the Ministry's representative. Source: AA