The Regulation on Jewelry Trade (the “Regulation”) has been published in the Official Gazette numbered 31454 on 14 April 2021 and entered into force as of the same date.

The deadline for applying for a certificate of authorization is 31 December 2021.

You may find here below briefly the conditions pertaining to the obtaining of the certificate of authorization and the relevant training, as well as the exceptions related to mixed sales businesses (e.g. businesses engaging the sale of jewelry and other retail goods such as bags, perfumes, accessories etc.).

In the Article 4 of the Regulation titled “Definitions“, it is defined as follows:

“ı) Jewelry: Processed precious metals, precious stones and precious articles,”
“j) Jewelry business: The business that engages in retail jewelry trade,”
“k) Jewelry trade: All activities regarding the purchase and retail sales of processed gold or other jewelry in conjunction with processed gold exclusively”.

According to article 5 of the Regulation, jewelry trade, shall be carried out only by jewelry businesses that have a certificate of authorization (in Turkish, “yetki belgesi”). Jewelry businesses without obtaining a certificate of authorization or are not exempt from such authorization of certificate shall not be able to use signs and expressions that give the impression that they are engaged in the jewelry trade.

Article 6 of the Regulation titled “Requirements for issuing a certificate of authorization” requires as follows:

“(1)   In order to be able to provide a certificate of authorization to the jewelry business, the following criteria are necessary to fulfil:
a) Being registered with the professional association,
b) Being an income or corporate taxpayer and not having overdue debts to the tax office as of the date of application for the authorization certificate,
c) The existence of jewelry trade activity among the fields of activity in the professional chamber and tax records,
ç) At least one full-time employee of the jeweler or jewelry business must have the relevant mastery certificate (in Turkish, “ustalık belgesi”),
d) For jewelers:

1)      Having completed the age of eighteen,

2)      He/she has not been bankrupt, or even if he/she has gone bankrupt, its reputation has been restored in accordance with the provisions of the Execution and Bankruptcy Law dated 9/6/1932 and numbered 2004,

3)     Not sentenced to a total of more than five years’ imprisonment for intentionally committed crimes, or crimes against the security of the state, the constitutional order and its functioning, national defense and state secrets, as well as espionage, embezzlement, , bribery, theft, fraud, forgery, breach of trust, fraudulent have not been convicted of bankruptcy, collusive tendering, collusive performance, laundering the property values arising from crime, financing of terrorism, smuggling, unlawful acquisition, providing a place and opportunity for gambling, or not prohibited by judgment from performing trade and art,
(2)   In case the jewelers graduated from the fields related to jewelry activities of secondary or higher education institutions, or from educational institutions abroad whose equivalence is accepted, the mastery certificate requirement specified in the first paragraph of the paragraph (ç) is not sought. The areas that provide exemption from the mastery certificate requirement are determined by the Ministry and announced on the website.
(3)   The Ministry is authorized to impose vocational training requirements for the issuance of a certificate of authorization and to determine the procedures and principles regarding this training by taking the opinions of the relevant public institutions and organizations.”

Besides a Jewelry Information System (in Turkish, “Bilgi Sistemi”) will be established by the Ministry in order to ensure the monitoring and control of the jewelry businesses. The Ministry is authorized to inspect the implementation of the Regulation and also inspect the complaints arising in practice. The Ministry can also use its authority through provincial trade directorates. In the event of breach of principles and rules brought by the Regulation, administrative sanctions are applicable to jewelry businesses.

Will your firm’s mixed business activities be exempt from obtaining such Certificate of Authorization?

Our Law Firm has recently applied to the Ministry of Trade on behalf of its some of clients who are engaged in mixed business activities, including retail sale of jewelry. Our Law Firm has successfully obtained letter of exemption stating that their mixed sale of business, including jewelry sales, does not fall with the scope of the Regulation for such clients’ business activities so that they will be continuing with their business as always.

If your company carries out mixed sales business including jewelry business, it is highly recommended to obtain an opinion from the relevant Ministry as to whether your company is exempt from applying for a certificate of authorization.

Our Law Firm remains at your disposal for any further clarifications you may need.