ROAD TRANSPORT ACT INTRODUCTORY PROVISIONS CHAPTER ONE PURPOSE, SCOPE AND DEFINITIONS

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1 ROAD TRANSPORT ACT Act no Date on which Act was passed: 10/07/2003 Date of publication in Official Gazette: 19/07/2003 Official Gazette issue no.: PART I INTRODUCTORY PROVISIONS CHAPTER ONE PURPOSE, SCOPE AND DEFINITIONS PURPOSE Section 1. The purpose of the present Act is to organize road transport as required by our country s economy, to ensure order and safety in transport, to define the terms carrier, agent and transport broker as well as the conditions of warehousing, cargo business and similar services, to lay down the qualities, rights and responsibilities of persons employed in transport operations, and to ensure that the road transport and other transport systems operate their services in a collaborative and complementary manner and that the available facilities are used more effectively. SCOPE Section 2. The present Act covers road transport by motor vehicle: passenger transport and haulage, carriers, transport agents and brokers as well as warehouse keepers and cargo operators, persons employed in transport operations, and all types of vehicle, appliance, device, building, etc. used in transport operations. However, transport performed by means of private cars and attached trailers, by vehicles belonging to public departments subject to the general and supplementary budgets, special provincial administrations, municipalities, universities and public economic enterprises, by motor vehicles and attached trailers belonging to the Turkish armed forces, and by trailers drawn by rubber-tyred tractors shall not be subject to the provisions of this Act. Transport performed within provincial boundaries and inter-city transport over distances of up to 100 kilometres can be entrusted to the respective provincial authorities, thereby being organized by the provincial and district traffic commissions working in collaboration, whereas local transport performed within municipal boundaries can be entrusted to the municipal authorities in accordance with the principles set forth in the regulations to be drawn up pursuant to the present Act. This shall be without prejudice to the provisions of international treaties and to any provisions applying in wartime, under martial law, in states of emergency and in natural disasters. DEFINITIONS Section 3. In the present Act, 1

2 Ministry shall mean the Ministry of Transport, Transport operations shall mean the transport business, transport agency services, transport brokering, warehousing and the operation of cargo services, Transport contractor shall mean any carrier operating transport activities, transport agent, transport broker, warehouse keeper or cargo service provider, Liability insurance shall mean the compulsory financial road transport liability insurance established under Section 18 of this Act, Transport shall mean carriage from the point where a passenger boards a vehicle or where goods are delivered to a carrier to the point of destination, Carrier shall mean a duly certified private individual or corporate body operating and charging for transport services in his/its own name and on his/its own account, Goods (freight) shall mean any type of transportable animate or inanimate object other than human beings; Point of departure shall mean the point where a passenger boards a vehicle or where goods are delivered to a carrier, Point of destination shall mean the place where the passenger wishes to go or where the consignor wishes the goods to be delivered as stated on the passenger ticket or consignment note, Consignor shall mean the person who consigns the goods to the carrier, specifies the consignee and signs the consignment note, Consignee shall mean the person to whom the goods listed in the bill of consignment, the bill of conveyance and the consignment note are to be sent, Agent shall mean a person whose occupation is to act as an intermediary on the basis of a contract, but without being in a dependent capacity such as that of a business agent, mercantile agent, salesman or employee, in a specific place or area on a permanent basis in contracts concerning one or several carriers and to conclude transport contracts on their behalf, Transport broker shall mean a person whose occupation is to haul goods in his own name and on behalf of a client for a fee, Freight warehouse shall mean the place where the following and similar services are performed: one or several consignments of goods are delivered either individually or collectively and are loaded, unloaded, stacked, stored, transferred and dispatched for delivery to the consignee under the supervision and control of the warehouse keeper, Freight warehouse keeper shall mean a person who is entitled to use an independent place of work and who takes delivery of goods and, under his own supervision and control, performs services such as loading, unloading, stacking, storing, transferring and dispatching those goods to the consignee, provides or procures transport services and assumes the liability deriving from those activities, Cargo shall mean a small individual item whose component unit(s) do not weigh more than 100 kg, such as a parcel, package or crate, 2

3 Cargo operator shall mean a person who is entitled to use an independent place of work and who takes delivery of cargo with a view to forwarding it to the consignee within a short period of time and who, under his own supervision and control, provides services such as loading, unloading, stacking, storing, transferring and dispatching those goods to the consignee, provides or procures transport services and assumes the liability deriving from those activities, Passenger(s) shall mean the occupant(s) of a vehicle apart from the driver who is driving the vehicle and attendants, Dangerous load shall mean a load deemed to be dangerous according to the regulations to be drawn up pursuant to the present Act, Group haulage shall mean the transport of goods from one or several consignors to one or several consignees, Passenger ticket shall mean the document with which a passenger must be provided and on which is stated the undertaking to transport the passenger and the mode and conditions provided in the regulations, Inter-city transport shall mean transport from any point or housing unit in any province to any point or housing unit in another province, International transport shall mean road transport from or to, road transport transiting via, or the transport by road of goods which have been sent to by sea, rail or air to third countries, Regular run shall mean a transport service that is provided on a specific itinerary according to a specific timetable and list of fares/rates between pre-determined settlement units, Incidental trip shall mean a trip where the same group of passengers is transported in the same vehicle throughout the entire itinerary and back to the starting point on a closed-door run as well as a run where the vehicle is full on the outward journey and empty on the return journey or empty on the outward journey and full on the return journey, Shuttle service shall mean the transport of a previously formed group of passengers on several outward and return journeys from the same starting point to the same destination point. GENERAL RULE CHAPTER TWO GENERAL TRANSPORT RULES Section 4. Transport shall be performed in a manner that is economical, rapid and efficient, with minimum adverse effects for the environment and having regard for the public good in a context of free competition. OBLIGATION TO OBTAIN A PERMIT TRANSPORT SERVICES 3

4 Section 5. Persons wishing to run a transport business or to operate transport agency services, transport brokering, freight warehousing and/or cargo services shall obtain a permit from the Ministry. In order to obtain a permit for operating a transport business or transport agency or brokering services and/or freight warehousing or cargo services, transport contractors must enjoy professional esteem, hold sufficient funds and demonstrate professional proficiency. (Sentence added: by Act no. 5278, Section 516, of 23/01/2008) Furthermore, the drivers working in the commercial vehicles used in haulage and road passenger transport activities shall be required to obtain a professional proficiency certificate. The rules and principles pertaining to this section shall be defined in the regulations. These provisions shall be without prejudice to the provisions of the Promotion of Foreign Capital Act (no. 6224) of 18/01/1954. In addition to the permit, a vehicle certificate shall be issued to carriers stating the type and number of vehicles to be used in the transport services provided as well as a vehicle card for each individual vehicle; these cards shall be registered in the carrier s vehicle certificate and must be kept in the respective vehicles. The Ministry may introduce restrictions on the issuing of permits and/or new regulations for reasons concerning the number of transport contractors, passenger and freight capacity, the condition of vehicles, safety considerations, etc. Carriers involved with vehicles carrying dangerous loads shall obtain separate authorization from the relevant authorities other than the permit referred to in the first paragraph; that authorization shall be issued on the basis of information and documents confirming their suitability for the loads they will be carrying. Unless there is an admissible reason or barring the event of necessity, transport contractors shall be required to provide their transport services and to ensure that everyone can use the transport services at any time. Carriers shall not be hindered by other carriers or third persons. CARRIER RESPONSIBILITY Section 6. Passenger transport and haulage activities shall be carried out in compliance with the law and in accordance with the contracts concluded between the carriers and the passengers and consignors. No passenger transport services shall be provided without a ticket or transport contract, nor shall any haulage services be carried out without a consignment note. The carrier shall be jointly responsible for the activities and transactions falling within the scope of this Act and carried out by his agent in his capacity as agent. Carriers shall be responsible for transporting passengers and goods in safety. And passengers and consignors shall comply with any safety measures taken by the carrier. Carriers shall comply with the provisions of the legislation in force pertaining to the prevention of environmental pollution and the protection of environmental and human health. CARRIER LIABILITY Section 7. Carriers shall take measures to ensure that their passengers journey is salubrious, comfortable and safe. 4

5 They must use vehicles which comply with the provisions of the relevant legislation, must appoint a qualified driver and attendant staff for the journey, must investigate whether drivers hold driving licences, must prevent vehicles which fail to meet the required technical conditions from entering road traffic, must engage a sufficient number of drivers with regard to the length of the journey, and must show the necessary diligence and acuity as regards refraining from involving vehicles which have no vehicle cards and no liability insurance as provided in the present Act in road traffic. Where it becomes imperative to wait indefinitely, or where the wait will mean that it will take more than twice the normal time to reach the destination point, for reasons preventng the continuation of the journey including unforeseen reasons connected with the road infrastructure, operations, the traffic, natural disasters, weather conditions, breakdown or accident, carriers must, as far as possible, complete the journey by following a different route or, failing that, must take passengers to a place on the route as requested by the passengers or must take the passengers and goods back to the point of departure. In such cases, carriers shall not charge any additional amount or make any similar demand; this shall be without prejudice to the full rights of the passenger and/or owner of the goods. The provisions set forth in the consignment note shall apply to the goods. Carriers shall apply twice a year every six months to the Police Headquarters to ascertain the penalty point situation of their drivers, and shall take the necessary measures to provide training and internal supervision for drivers with a large number of penalty points. RESPONSIBILITY OF CONSIGNORS Section 8. The consignor shall inform the carrier in full and truthfully of the destination point, type, quantity and nature of the goods contained in the consignment and shall provide any other important information. The consignor shall assume all responsibilty deriving from incorrect or incomplete information. In the event of denouncement or suspicion, carriers may have the goods inspected in the presence of the authorities and officials. RESPONSIBILITY OF AGENTS, TRANSPORT BROKERS AND PERSONS OPERATING FREIGHT WAREHOUSING AND/OR CARGO SERVICES Section 9. Agents, transport brokers and carriers shall be jointly and severally responsible for the activities and operations which agents and brokers have carried out in that capacity. Persons operating freight warehousing and/or cargo services shall be responsible for the total or partial loss of goods and any damage that occurs, for the protection and transport of the goods, and for ensuring the safety and orderliness of the goods from the moment they take reception of those goods until the goods are delivered; they shall also be responsible for applying the rules for preventing environmentaal pollution and protecting human health. PROHITITION OF TRANSPORT Section 10. Holders of an agency and transport brokerage permit shall not provide or procure transport services in their own name and on their own account without obtaining a carrier s permit. In order for transport brokers to provide haulage services in their own name they must provide that transport on behalf of a client. Passenger transport brokerage is prohibited. 5

6 LIST OF FARES/RATES AND TIMETABLE Section 11. Persons authorized to operate passenger transport or haulage services, freight warehousing and/or cargo services shall draw up lists of fares/rates for those services, thereby also indicating the term of validity, and shall communicate them to the Ministry. Operators shall abide by those fares/rates and shall display them visibly at workplaces, in terminals, at ticket offices and in the vehicles used. In the event that the fares/rates charged for passenger transport or for the transport, loading, unloading, storing and transferring of goods are to the detriment of the Turkish economy and the public good, are excessive, or distort competition, the Ministry may fix minimum and maximum rates where necessary. The fares/rates shall be charged between the point of departure and the terminus, and the same fares/rates shall be applied on both outward and return journeys. Different sets of rates shall not be applied. Regular passenger transport and haulage services shall be subject to a timetable. The timetables drawn up by carriers, on which the term of validity shall also be stated, shall enter into effect after approval by the Ministry. Carriers shall abide by the timetables and shall display them visibly at workplaces, in terminals and at ticket offices. Issues concerning free and cut-rate transport shall be dealt with in the regulations. PART II INTERNATIONAL TRANSPORT CHAPTER ONE SCOPE OF INTERNATIONAL TRANSPORT AND TRANSPORT AUTHORIZATION SCOPE OF INTERNATIONAL TRANSPORT Section 12. International passenger transport and haulage shall cover the following areas: a) the transport by road vehicle of transit passengers or goods entering by road or rail at any border point or at any sea port, b) the transport of passengers or goods arriving in by rail, sea or air to third countries by means of road vehicles, c) the transport of passengers or goods from to other countries by means of road vehicles, d) the transport of passengers or goods from other countries to by means of road vehicles. AUTHORIZATION TO OPERATE TRANSPORT SERVICES 6

7 Section 13. The transport services referred to in Section 12 a) may be provided in accordance with the provisions of bilateral or multilateral international road transport agreements by carriers who have obtained a permit from the Ministry for providing international transport services using approved vehicles or foreign-registered vehicles which have been authorized by the Ministry. The transport services referred to in Section 12 b) shall be provided by carriers who have obtained an international carrier s permit from the Ministry. In the case of foreign-registered vehicles, a transport permit may be issued by Cabinet decision on the basis of a Ministry proposal. The Ministry shall define the countries to which the authorized vehicles referred to in the above paragraphs may provide transport services and the road border points, sea ports, airports or aerodromes, railway stations or depots through which they may operate. The transport services referred to in Sections 12 c) and d) may be provided with vehicles belonging to carriers holding international transport permits or by foreign carriers who have been authorized on the basis of the provisions of bilateral and multilateral road transport agreements or to whom the Ministry has issued special permits. Foreign-registered vehicles shall not provide transport services between two points within. CHAPTER TWO PROHIBITIONS, ORGANIZATION OF TRANSPORT SERVICES, TRANSIT FEES PROHIBITIONS Section 14. Except where authorized by the civilian border authorities in cases of necessity, no passengers or goods shall be transported to the border points in violation of the relevant legislation or the contracts concluded between carriers and passengers or consignors, nor shall any transfers be carried out or goods stored at those points; furthermore, passengers shall not walk through the border posts as pedestrians and then board another vehicle. ORGANIZATION OF TRANSPORT SERVICES Section 15. With a view to preventing the hindrance of domestic transport services and to promoting more rapid and better coordinated international transport through, a quota system may be applied in transit transport carried out by road to or through, where necessary in collaboration with other transport systems and on a basis of complementarity, in accordance with the relevant legislation determining the physical boundaries of the infrastructure and transport routes. Vehicles which countries which are not parties to a road transport agreement will be using for transport services shall be subject to Ministry authorization. TRANSIT FEES Section 16. Foreign-registered vehicles shall be charged a transit fee with a view to their participation in road maintenance and conservation expenditure. These transport fees shall not include such fees as bridge, tunnel and motorway tolls or the fees charged for the use of road infrastructures or the fees charged for any services provided for goods and vehicles. 7

8 The Ministry shall have the authority to fix, raise, reduce or abolish transit fees. The above provisions shall be without prejudice to the provisions of the international treaties to which is a party. PART III LIABILITY AND INSURANCE CHAPTER ONE PASSENGER TRANSPORT INSURANCE, COMPULSORY INSURANCE, INSURANCE PREMIUMS LIABILITY Section 17. Inter-city and international passenger carriers shall be liable for the death of or injury caused to passengers or damage caused to their property as the result of an accident occurring in the course of the journey between the point of departure and the destination point, including stops. COMPULSORY ROAD TRANSPORT FINANCIAL LIABILITY INSURANCE Section 18. Carriers shall be required to take out insurance to cover their liability deriving from Section 17 of the present Act for any bodily harm caused to passengers. However, when deemed necessary, the Ministry under whose authority the Treasury operates may exclude damage occurring in specified foreign countries from the scope of the guarantee. If a carrier required to take out road transport liability insurance proves that the accident occurred as the result of force majeure through no fault of his own or of persons for whose actions he is responsible and that there was no vehicle defect which played a part in the accident or that the accident was caused by gross negligence on the part of the claimant or of a third party, he shall not be held responsible. If a carrier who is held responsible proves that the person suffering damage during the accident was at fault, the compensation to be paid may be reduced depending on the situation and circumstances. The general conditions of liability insurance policies shall be approved by the Treasury Department. The rates and terms of reference of liability insurance shall be defined by the Ministry under whose authority the Treasury Department operates and shall be published in the Official Gazette. The Ministry under whose authority the Treasury Department operates shall have the authority to decontrol the rates charged. The road transport financial liability insurance for which provision is made in the present Act shall be provided by insurance companies that are licensed to operate in the field of compulsory financial liability insurance for road motor vehicles. PLURALITY OF CLAIMANTS AND COMPULSORY FINANCIAL LIABILITY INSURANCE Section 19. In the event that the compensation owed to claimants exceeds the guarantee provided in the insurance policy, the individual claim for damages which each of the claimants can file with the insurer shall be subject to reduction proportionate to the total amount of the guarantee. 8

9 A bona fide insurer who, unaware that there are other claims, pays more than the proportion due to a claimant or to several claimants shall be deemed free of debt to other claimants in the context of the payment or payments he has made. The damage which has occurred shall first be paid through the carrier s liability insurance. In the case of damage for which no payment is made through that liability insurance, there shall be recourse to the compulsory financial liability insurance required by the Road Traffic Act (no. 2918). CASES RESULTING IN THE REDUCTION OR CANCELLATION OF COMPENSATION Section 20. Cases resulting in the cancellation of contractual or implied indemnity obligations or in the reduction of the amount of compensation paid may not be brought against claimants. An insurer who has paid compensation may take recourse against the carrier proportionate to such cancellation or reduction of compensation in accordance with the insurance contract and the relevant statutory provisions. RIGHT TO DIRECT RESTITUTION Section 21. Claimants may file a claim direct with the insurer within the limits provided in the liability insurance. NOTIFICATION OF THE RESULT OF AN ACCIDENT AND PAYMENT OF DAMAGES Section 22. The insurance company shall be notified of an event giving rise to liability insurance indemnification within thirty working days of the date on which it is reported by the policy holder or the claimant; if the event happens outside, the insurance company shall be notified with sixty working days. It is the obligation of the policy holder to provide the insurance company with the information and documents pertaining to the accident, the damage caused or any legal proceedings that are instigated in connection with the event. Insurers shall pay the amount remaining according to the terms of the liability insurance to the claimant within eight working days of the date on which the claimant forwarded the documents pertaining to the accident or the damage caused to the insurer. PROOF OF INSURANCE Section 23. Insurance companies shall issue insurance holders with a liability insurance certificate, which shall be drafted and printed by the Turkish Union of Insurance and Reinsurance Companies subject to approval by the Ministry under whose authority the Treasury Department operates, the form and scope of the certificate having been endorsed by the Ministry; this certificate shall be issued together with the insurance policy. The registration numbers of the vehicles shall be stated on the policy, and an insurance certificate shall be drawn up for each individual vehicle. Carriers shall keep the liability insurance documents in their vehicles. A traffic ban shall be imposed on vehicles which have no liability insurance certificate on board until such time as an insurance guarantee is produced. CHAPTER TWO TIME LIMIT, COMPETENT COURTS AND ENFORCEMENT AGENCIES 9

10 TIME LIMIT Section 24. Any action for damages resulting from liability insurance contracts pursuant to the present Act shall lapse within two years of the date on which the claimant is informed of the person responsible for the damage and liable to pay indemnification and at all events within ten years of the date of the event causing the damage. Where the lawsuit arises from a punishable act and the Turkish Criminal Code makes provision for a longer time limit, that time limit shall apply in the action for damages. Reasons for reducing the time limit pertaining to the party responsible shall also apply to the insurance company. Reasons for reducing the time limit pertaining to the insurance company shall also apply to the party responsible. The right of reciprocal recourse of the parties liable to pay compensation in liability insurance shall lapse within two years of the date on which they have met their obligations in full and are informed of the party to whom recourse is to be made. COMPETENT COURT AND ENFORCEMENT AGENCIES Section 25. In any disputes arising from the insurance contract and actions taken for damages or on grounds of recourse claims, and in the ensuing enforcement proceedings, the competent courts or enforcement agencies shall be the courts and enforcement agencies in the domicile of the insurance company or its branch office, of the agent who concluded the insurance contarct, of the insurance holder, of the claimant or of the party to whom recourse is made or in the place where the event causing the damage took place. PART IV MISCELLANEOUS PROVISIONS CHAPTER ONE PENALTIES ADMINISTRATIVE FINES Section 26. (Amended by Act no. 5728, Section 518, of 23/01/2008 to read as follows:) The following administrative fines shall be imposed on the following persons: a) persons or bodies operating a transport business without obtaining a permit in accordance with Section 5: five thousand Turkish Lira; carriers who violate Section 5, parag. 5: five thousand Turkish Lira; carriers who fail to provide transport services pursuant to Section 5, parag. 6: four hundred Turkish Lira; carriers who violate Section 5, parag. 7, and impede the transport activities of another transport contractor: four thousand Turkish Lira; b) passenger carriers who give the place reserved on a ticket to another person or who violate Section 6: five times the fare for each passenger; hauliers who operate without a consignment note: one thousand Turkish Lira; 10

11 c) carriers who violate Section 6, parag. 1: three hundred Turkish Lira; those who violate parags. 3 and 4: five hundred Turkish Lira; d) passenger carriers who violate Section 7, parag. 1: one thousand Turkish Lira; carriers who violate parag. 2: five hundred Turkish Lira, and those who violate parag. 6: three hundred Turkish lira; e) agents and transport brokers who violate Section 10: three thousand Turkish Lira; f) those who fail to draw up a list of fares/rates in violation of Section 11: five hundred Turkish Lira; those who fail to abide by the list of fares or rates or who apply different fares or rates: five hundred Turkish Lira; and in addition, those who violate parag. 2: two hundred Turkish Lira; those who fail to abide by the timetable: two hundred Turkish Lira, and those who fail to display their timetables visibly at workplaces, in terminals and at ticket offices: one hundred Turkish Lira; g) the owner or driver of a foreign-registered vehicle providing transport services between two points within the borders of : one thousand Turkish Lira; h) those who violate Section 14: five hundred Turkish Lira; I) carriers who fail to take out a liability insurance in accordance with Section 18: one thousand Turkish Lira; insurance companies which fail to provide liability insurance in accordance with Section 18: ten times the amount of insurance premium due; i) carriers who fail to comply with Section 22 and who fail to meet their obligations: five hundred Turkish Lira; j) carriers who, in violation of Section 32, pick up and let off passengers at places other than the terminal and the intermediate stops: three hundred Turkish Lira; k) transport operators who operate without obtaining a professional proficiency certificate as provided in Section 5: five hundred Turkish Lira, and drivers who fail to obtain such a certificate: two hundred Turkish Lira. IMPLEMENTATION OF PENALTIES Section 27. (Amended by Act no. 5728, Section 519, of 23/01/2008 to read as follows:) The local civilian official shall have the authority to award the administrative sanctions provided in the present Act. The administrative fines imposed pursuant to Section 26 shall not prevent the implementation of administrative sanctions such as the caution provided in the present Act and in the regulations, suspension of activities and withdrawal. RECORDS OF OFFENCES AND ACCIDENTS Section 28. (Section abolished by Act no. 5728, Section 578, of 23/01/2008) FINE PAYMENT TERM 11

12 Section 29. (Section abolished by Act no. 5728, Section 578, of 23/01/2008) SUBSEQUENT OFFENCE Section 30. (Amended by Act no. 5728, Section 520,of 23/01/2008 to read as follows:) In the event that a private individual or corporate body who or which has committed an act carrying an administrative fine as defined in the present Act is found to have committed the same act three times within one year of the date on which the first act was committed, an administrative fine amounting to ten times the sum of the fines carried by those acts shall be imposed, and if the driver of the vehicle holds a driver s certificate of proficiency for transport in and abroad his international driver s certificate shall be suspended for one year. CHAPTER TWO ADMINISTRATIVE SANCTIONS FAILURE TO MEET THE REQUIREMENTS FOR THE ISSUING OF A PERMIT AND FALSIFICATION Section 31. Should it subsequently transpire that the holder of a permit does not meet any one of the requirements for obtaining a permit or in the event that a holder ceases to meet any such requirement in the course of his activity and fails to remedy the situation within the appointed time, the permit shall be withdrawn. (Paragraph amended by Act no. 5728, Section 521, of 23/01/2008 to read as follows:) Permit holders who falsify permits, vehicle certificates and/or vehicle cards shall be liable to the penalty imposed pursuant to the provisions of the Turkish Criminal Code pertaining to the offence of forgery, reduced by half. TERMINAL CHAPTER THREE FINAL PROVISIONS Section 32. In the case of regular passenger transport services it shall be a fundamental rule that departures and arrivals take place from or at a terminal. However, passengers may board and alight from vehicles at intermediate stops, whose characteristics shall be laid down in the regulations, the location and time of such stops having been previously specified. Passenger carriers must own at least one passenger terminal either independently or jointly or must hold entitlement to use such a terminal. A terminal may be used by several carriers, depending on the nature and amount of passenger traffic. A terminal shall not be required for haulage services. The characteristics of terminals shall be laid down in the regulations. FEES Section 33. Fees shall be charged for the permits and vehicle cards issued. No permits or vehicle cards shall be issued free of charge. A fee of 50% of the normal fee shall be charged for the renewal of a permit or the issuing of a new permit when a permit is lost. No fee shall be charged when permits are renewed because of a change of name or address or for other such reasons. 12

13 These fees shall apply from the beginning of each calendar year throughout that year; they shall be increased each year by the reassessment rate determined and promulgated in accordance with Section 298 of the Tax Procedures Act (no. 213). The Ministry may establish a floating capital enterprise with the Minister s approval with a view to providing services falling within its purview. The Cabinet shall have the authority to determine the amount of floating capital. The functions, income, working methods and supervision of the enterprise shall be defined in the regulations. (Paragraph added by Act no. 5335, Section 21, of 21/04/2005 to read as follows: ) The provisions of Section 49 of the Public Accounting Act (no. 1050) pertaining to the income of a floating capital enterprise up to and including 2004 shall not apply. (Paragraph added by Act no. 5335, Section 21, of 21/04/2005 to read as follows: ) The Minister of Transport shall have the authority to order payment : 1) of up to New Turkish Lira to the successors of a driver and any Turkish citizens accompanying him who are attacked and killed in the course of international transport in countries where war, civil war, terrorism, conflict or similar circumstances of emergency prevail; 2) to the owners of any buses, trucks, tanker trucks and tractors used in commercial passenger transport and haulage which are over the age limits laid down in the relevant legislation and which the Ministry may take over within the financial possibilities of the floating capital enterprise. Paragraph added by Act no. 5335, Section 21, of 21/04/2005 to read as follows: ) The floating capital enterprise may make use of those vehicles which have been taken over by selling, donating or assigning them to private individuals and/or corporate bodies in and/or in other countries and/or by using similar means. The revenue obtained from these transactions shall count as income of the floating capital enterprise. REGULATIONS Section 34. The regulations governing the following issues shall be drawn up by the Ministry and published in the Official Gazette within six months of the date on which the present Act enters into force: a) the conditions which private individuals and corporate bodies wishing to run a transport business or to operate transport agency services, transport brokering, freight warehousing and/or cargo services must meet, the permits and vehicle certificates to be issued, the vehicle capacities required for each type of certificate, the age and characteristics of vehicles, the maximum loads and the items to be provided in terminal services, b) the terms of validity of certificates, withdrawal of certificates, and the administrative sanctions to be applied; c) the obligations of private individuals and corporate bodies wishing to run a transport business or to operate transport agency services, transport brokering, freight warehousing and/or cargo services, auxiliary baggage and transport services, d) how timetables and price lists are to be drawn up, the form and content of passenger tickets and consignment notes, e) the qualities of drivers and other officials to be employed in transport services and the requirements they must meet, 13

14 f) the principles governing the supervision of transport services and the examination of applications for certificates, g) the principles governing free and cut-rate transport, h) other principles and procedures connected with the implementation of the Act. ASSIGNMENT OF AUTHORITY Section 35. The Ministry may assign all or part of the duties and powers which are its responsibilty pursuant to the present Act. The rules and principles governing such assignment shall be set forth in the regulations that are to be issued. LEGISLATION TO BE APPLIED IN CASES WHICH ARE NOT DEALT WITH IN THE PRESENT ACT Section 36. The provisions of the Turkish Commercial Code (no. 6762), the Road Traffic Act (no. 2918), the Insurance Audit Act (no. 7397) and any other relevant legislation shall apply in cases which are not dealt with in the present Act. PROVISIONAL SECTIONS Provisional Section 1. With the exception of those who have obtained a permit before the regulations to be brought into force pursuant to the present Act enter into force, private individuals and corporate bodies running an inter-city haulage business or operating transport agency services, transport brokering, freight warehousing and/or cargo services shall obtain a permit within one year of the date on which the regulations enter into force, whereby the application conditions shall not apply. In cases of necessity, the Ministry may extend that term by periods of six months up to a maximum of one year. Individuals or corporate bodies wishing to obtain a permit for the first time shall be required to prove that they are carrying out the activities connected with the permit for which they are applying. The provisions of the present Act and of the regulations to be issued pursuant to this Act shall apply to those applying for a permit once the above term within which permits are to be obtained has expired. Provisional Section 2. Carriers, agents and transport brokers and individuals or corporate bodies operating freight warehousing and/or cargo services who or which obtain permits with the term specified in Provisional Section 1 shall ensure that their situation complies with the present Act and with the regulations to be issued pursuant to it within two years of the date on which they obtain the permit. Provisional Section 3. Private individuals or corporate bodies who or which have obtained a separate terminal permit or who have been operating an independent terminal before the publication of the present Act may continue to operate their existing terminals. However, they must meet the requirements set forth in the regulations within one year. ENTERING INTO FORCE Section 37. The present Act shall enter into force on the date on which it is published. ENFORCEMENT Section 38. The provisions of the present Act shall be enforced by the Cabinet. 14

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