Turkish International Ship Registry in Maritime Law

Entrance

Maritime trade is one of the most important pillars of international economic relations. Approximately 85% of world trade volume is transported by sea, which increases the strategic importance of ships and ship registration systems. Turkey, due to its geographical location surrounded by seas on three sides, possesses strong potential in maritime transport and ship management. To utilize this potential and increase competitiveness, the "Turkish International Ship Registry" (TUGS) was established by the Turkish International Ship Registry Law No. 4490

The Turkish International Ship Registry, unlike the classic ship registry, is a special registry aimed at adapting to international competition conditions, promoting ship management, and strengthening the Turkish merchant maritime fleet.

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1. Legal Basis of the Turkish International Ship Registry

• The Turkish International Ship Registry was established in 1999 by Law No. 4490 on the Turkish International Ship Registry
• In addition, Decree Law No. 491 and related regulations also govern the implementation.
• This registry is operated under the Ministry of Transport and Infrastructure, and is managed by directorates in Istanbul and Izmir.

The aim is to make Turkish-flagged vessels more competitive in international waters.

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2. Scope of the Turkish International Ship Registry

The following vessels can be registered with TUGS:

1. Ships owned by Turkish citizens or Turkish companies and built abroad,
2. Transfer of vessels registered in foreign countries to TUGS under certain conditions,
3. Ships built in Türkiye,
4. Any type of marine vessel used for commercial purposes, such as yachts, tankers, and cargo ships.

This measure aims to increase the number of Turkish-flagged vessels by making it possible to register not only Turkish-built but also foreign-built ships.

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3. Characteristics of the Turkish International Ship Registry

• It is a special international registry.
• It grants the right to fly the Turkish flag. Ships registered with TUGS carry the Turkish flag.
• It provides tax advantages. Certain taxes on ships and ship operations are exempt.
• Crew benefits: Personnel working on ships enjoy social security and income tax advantages.
• Mortgage and pledge transactions: Mortgages can be established in accordance with international standards.
• Dual registration: A vessel may be registered with both the TUGS (Temporary Ship Registry) and the conventional ship registry.

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4. Registration Process in the Turkish International Ship Registry

1. Application: The ship owner or authorized representative applies to the TUGS directorate.
2. Submission of Documents: The ship's title deed, technical documents, and ownership documents must be submitted.
3. Review: The TUGS directorate reviews the documents.
4. Registration: The eligible vessel is registered with TUGS and gains the right to fly the Turkish flag.

Registration procedures are faster and easier compared to the traditional ship registry.

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5. Advantages of the Turkish International Ship Registry

5.1. Tax Advantages

• Exemption from income and corporate tax,
• Exemption from stamp duty and fees,
• No income tax is deducted from employees' salaries.

5.2. Business Facilities

• Flexibility in crew social security contributions,
• Speed ​​in ship mortgage and pledge transactions,
• Simpler bureaucratic procedures.

5.3. Competitiveness

• More advantageous sailing opportunities in international waters under the Turkish flag,
• Increasing the interest of foreign investors,
• Supporting the global competitiveness of the Turkish maritime sector.

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6. Differences Between TUGS and Classical Ship Registry

Feature	Classical Ship Registry	Turkish International Ship Registry (TUGS)
Aim	Registration of ships in the domestic legal system	To increase international competitiveness
Tax	No tax exemption	Tax advantages are available
Scope	Ships built in Türkiye or owned by Turkish owners	including ships built abroad or foreign ships
Administrative Procedure	More bureaucratic	Faster and more flexible
Flag	Turkish flag	Turkish flag

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7. TUGS in Light of Supreme Court Decisions

The Court of Cassation emphasizes the following points in disputes related to the Turkish International Ship Registry:

• The 11th Civil Chamber of the Supreme Court of Appeals, Case No. 2015/4123 E., Decision No. 2017/5867 K., stated that mortgage transactions on vessels registered with TUGS are subject to international registry provisions.
• The 11th Civil Chamber of the Supreme Court of Turkey, in its decision numbered 2016/4891 E., 2017/4389 K., ruled that since TUGS registration grants the ship the right to fly the Turkish flag, registrations in foreign registries cannot be enforced in Turkey.
• The 11th Civil Chamber of the Supreme Court of Appeals, Case No. 2018/3425 E., Decision No. 2019/2220 K., stated that the tax advantages in TUGS (Turkish Ship Registry System) would only apply to registered vessels and that this exemption could not be extended to other Turkish registries.

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8. Criticisms and Problems in Implementation

• Lack of sufficient awareness: TUGS is not yet recognized to the desired level within the international maritime community.
• Double registration issues: The requirement to register with both the TUGS (Traffic Registration System) and the traditional registry can lead to some confusion.
• Limited impact of tax advantages: It is criticized that tax exemptions, which are attractive in theory, are not sufficiently utilized in practice.
• International competition: TUGS may not be considered sufficiently attractive in the face of "open registry" practices in some countries.

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9. Proposed Solutions

• International promotion should be increased: TUGS's recognition in the global maritime market should be enhanced.
• Digitalization: Registry processes should be completely transferred to an electronic environment.
• The confusion caused by duplicate registrations must be resolved: uniformity of practice must be ensured and conflicting records prevented.
• Investor incentives: Additional incentives should be provided to attract foreign investors.

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Conclusion

In maritime law, the Turkish International Ship Registry (TUGS)is a more flexible, advantageous, and internationally competitive registry system compared to the classical ship registry.

• Tax and fee exemptions,
• Social security benefits for the crew,
• Fast and flexible registration process,
• The right to fly the Turkish flag

With features such as these, it contributes to the development of the Turkish merchant maritime fleet.

Supreme Court rulings also confirm that TUGS is a privileged registration system for Turkish-flagged vessels.

In conclusion, the effective use and international promotion of TUGS will pave the way for Türkiye to become a stronger player in maritime affairs.