What is Foreign Currency Earning Service Trade Support?

The economy is constantly changing depending on developments in the world. Advancing technology, production-consumption models, ways of doing business, and policies also affect international trade. Although negative developments are encountered, service trade is rapidly increasing day by day and proving its existence.

In 2015, the "Decision on the Support for Foreign Currency Earning Service Trade" and "Decision on the Branding Supports for Foreign Currency Earning Service Sectors" related to legislative studies were enacted by the Ministry of Trade in the official gazette. The purpose of this decision is;
● To support foreign currency inflow to the national economy,
● To improve the competitiveness of service sectors with their international competitors,
● To ensure an increase in service revenues,
● To facilitate the opening to foreign markets and branding in the field.

The supported programs include health tourism, information systems, film and series sector, education, management consultancy, real estate sector, publishing, transportation, logistics, gastronomy, retail, accommodation, and aviation sector. There are different support elements suitable for these sectors.

How Much Support Can You Receive from Foreign Currency Earning Service Trade Support?

If we look at the support elements; we can say that the expenses related to the registration of the product or service abroad are covered in terms of product, service, and brand registration protection support. In addition; documentation support, consultancy support, consultancy support for reports and foreign company acquisitions, agency commission support, foreign unit support, individual and national fair participation support, national fair support, advertising, promotion, and marketing support, trade and purchasing support, computer game/mobile application commission support, computer game/mobile application market entry support, and many more can be accessed within the scope of foreign currency earning service trade support.

Let’s examine some of the supports included in this broad spectrum service trade support program in detail.
● Film Overseas Marketing Support;
If you are in the cinema/film series sector, you can use this support for the necessary permits and classification documents related to the screening of your film abroad, dubbing-subtitle, posters to be prepared for the film's release, printed materials, and description tools. All expenses in this process are covered by this support program.

● Patient Journey Support;
If you are in the health tourism sector, you can cover the expenses incurred during the flights arranged by private health institutions or aviation companies that have made a protocol with the Ministry of Trade for the treatment of patients with this support program.

You can also check in detail how much support you can receive from Foreign Currency Earning Service Trade support in the guide published by the Ministry of Trade.

Foreign Currency Earning Service Sector Supports

We can divide foreign currency earning service sector supports into two categories. These can be classified as the support of foreign currency earning service trade and the branding supports for foreign currency earning service sectors.

The sectors under the support of foreign currency earning service trade are as follows;
1. Health Tourism
2. Information Technology
3. Education
4. Film
5. Marketing
6. Promotion
7. Advertising

The branding supports for foreign currency earning service sectors can be listed as follows.
1.TURQUALITY®
This program is the first and only branding program that allows firms that can increase Turkey's competitive advantage and have branding potential to brand Turkish goods with state support, covering the entire process from production to marketing and sales.

Who Can Benefit from Foreign Currency Earning Service Trade Support?

Those who can benefit from Foreign Currency Earning Service Trade support are listed as follows;
● Institutions referred to as established cooperation organizations, Turkey Exporters Assembly, TOBB, Foreign Economic Relations Board,
● Companies established by the aforementioned institutions and which have at least 51% shareholding,
● Educational institutions,
● Health institutions,
● Those involved in the health tourism sector,
● Those in the information technology sector,
● Those in the film sector,
● Management consulting companies and other companies, institutions, organizations, and individuals concerning related supports.

What is the Scope of the Foreign Currency Earning Service Trade Support?

The foreign currency earning service trade support, which has a wide range, provides support to many sectors from marketing to the health sector. If we look at the supported activities one by one, they can be listed as follows;
1. Support Aimed at Health Tourism, Information Technology, Education, and Film Sectors

2. Additional Support for Health Tourism and Education Sector
● Support for Translation Services and Support for Patients Coming from Abroad
● Support for Promotion and Education Activities Conducted within the Country Specifically for Abroad

3. Additional Support for Information Technology and Film Sectors
● Market Entry Support
● Support for Commission Expenses of Mobile Applications and Computer Games
● Support for Film Studio and Studio Usage Expenses
● Support for Advertising Expenses Made within the Scope of the Film

4. Support for Management Consulting Sector

5. Support for Cooperation Organizations
● Support for Trade Purchasing Delegations
● Support for Other Activities

6. Support for Participation in Overseas Fairs, Congresses, Conferences, etc.
● Support for Individual Participations
● Support for National Participation Organizations

The duration of the programs under the support is determined to be 3 years. Cooperation organizations must apply to the Ministry of Trade at least two months in advance to benefit from the support.
There are a maximum of ten domestic and international events each year under the support program.

What are the Items of Foreign Currency Earning Service Trade Support?

The items of Foreign Currency Earning Service Trade Support are listed below. They are;
1. Support Elements for Health Tourism, Information Technology, Education, and Film Sectors
2. Additional Support Elements for Health Tourism and Education Sectors
2.1. Support for Translation Services for Patients Brought from Abroad
2.2. Support for Activities Conducted within the Country Specifically for Abroad
3. Additional Support Elements for Information Technology and Film Sectors
3.1. Support for Market Entry
3.2. Support for the Commission Expenses of Mobile Applications and Computer Games
3.3. Support for Activities for the Development of Mobile Applications and Computer Games
3.4. Support for Film Studio/Studio Usage Expenses
3.5. Support for Advertising Expenses Made within the Scope of the Film
4. Support Elements for Management Consulting Sector
5. Support Program for Cooperation Organizations
5.1. Support for Trade and Purchasing Delegation Programs
5.2. Support for Trade and Purchasing Delegation Programs
5.3. Support for Other Activities
6. Support Program for Participation in International Fairs/Congresses/Conferences/Seminars/Festivals/Film Markets
6.1. Support for Individual Participations
6.2. Support for National Participation Organizations

What are Foreign Currency Earning Services and Activities?

Foreign currency earning services and activities are the fields that allow a country to earn foreign currency by exporting goods and services abroad to meet its foreign currency needs and reduce its foreign trade deficit. Some examples are:
Export: The sale of products produced within the country to abroad. Export helps a country earn foreign currency.
Tourism: By attracting tourists from abroad to the country, it provides tourism revenue. Tourism is one of the most important sources of foreign currency for many countries.
Service export: When services provided to foreign companies are invoiced in foreign currency, it becomes a foreign currency earning activity. For example, services such as software development, design, and consultancy can be cited as examples of foreign currency earning activities.
Investment: Investing in foreign countries is a foreign currency earning activity. The returns from these investments are generally also in foreign currency.
Art and cultural activities: Selling cultural products such as works of art, books, and films abroad is also a foreign currency earning activity.
Logistics and transportation services: Providing logistics services such as transportation, storage, and customs clearance to foreign companies is also included among foreign currency earning activities.
Through such activities, a country can diversify its foreign currency sources, ensure its economic stability, and become less affected by fluctuations in foreign exchange rates.

How to Obtain Foreign Currency Earning Support?

In the scope of support for foreign currency earning services and activities, there are sectors and product groups determined by the Turkey Exporters Assembly (TİM). These sectors and product groups are included in the list of prioritized products specified by TİM. According to the prioritized product list determined by TİM, support is provided to companies operating in these sectors.
For foreign currency earning activities, one can contact the Trade Attachés and Exporter Unions within TİM. Experts in these institutions provide consultancy services regarding the export strategies and targets of companies and also provide support for foreign currency earning activities.
Additionally, Turkey Export Credit Bank (TİKB) also provides financial support to exporters. TİKB supports foreign currency earning activities by providing credit facilities to exporters under suitable conditions.

What are the Processes of Foreign Currency Earning Support?

The foreign currency earning support processes are conducted by the Turkey Exporters Assembly (TİM) and the Ministry of Trade. The support processes are as follows:
Application: Companies wishing to receive support for foreign currency earning services and activities must operate in sectors listed in the prioritized product list determined by TİM or the Ministry of Trade. Applications are made during the dates specified by TİM or the Ministry of Trade.
Evaluation: Applications are evaluated by commissions formed by TİM or the Ministry of Trade. Evaluation criteria include factors such as export volume, target markets, product quality, technological innovations, and environmental factors.
Support Provision: As a result of the evaluation, companies deemed suitable for supporting foreign currency earning services and activities are included in the support scope. Under the support, the company is offered financial support, marketing support, consultancy services, and more for their export activities.
Monitoring: The export activities of companies within the support scope are monitored by TİM and the Ministry of Trade. The monitoring process is conducted to ensure that companies reach targeted export figures.
The foreign currency earning support processes are conducted to enhance the competitiveness of exporting companies and increase their export volumes.

What are the Support Elements for Foreign Currency Earning?

The support elements for foreign currency earning are as follows:
Export: Foreign currency earnings obtained through export are an important source for the country's economy. Exporting companies can benefit from various incentives within the support for export.
Tourism: The tourism sector also provides significant contributions to the country's economy. Foreign tourists coming to the country and spending increase the country's foreign currency earnings.
Service export: Services provided by companies in the service sector abroad are also among foreign currency earning activities. For example, exports of services in areas such as software, consultancy, and education are conducted.
Investment: Direct investments made by foreign investors in the country create an important source for the economy. Foreign investors can also benefit from various incentives for investing in the country.
Export of licenses and patents: The export of licensed or patented products produced within the country to abroad is also among foreign currency earning activities.
Logistics support: Companies providing logistics support to foreign firms are also included among foreign currency earning activities. For example, companies offering logistics services in areas such as transportation, storage, and customs procedures can earn foreign currency.
Film and series production: The screening of produced films abroad or providing production services to foreign film companies are also among foreign currency earning activities.
Agriculture and animal husbandry: The sale of agricultural and livestock products abroad is also included among foreign currency earning activities. Particularly among the exported products are fruits, vegetables, meat, milk, and dairy products.