Carriage of Goods to Turkey by Foreign-Flag Vessels

1. Legal Framework Applicable to Foreign-Flag Vessels

1.1 Key pieces of Turkish legislation

Foreign-flag vessels trading to Turkey must be analysed primarily against four domestic pillars:

1. Cabotage Law No. 815
   • Grants an exclusive right to Turkish-flag vessels and Turkish nationals to carry passengers and goods between Turkish ports and along Turkish coasts, and to perform most port services within Turkish waters.
2. Turkish Commercial Code No. 6102 (TCC) – Book Five (Maritime Law)
   • Regulates maritime trade relationships: contracts of carriage of goods by sea, bills of lading, voyage and time charter parties, maritime liens, limitation of liability and arrest of ships.
3. Customs Code No. 4458 and related secondary legislation
   • Governs the customs status of goods brought into Turkey, including summary declarations, customs regimes (import, transit, warehousing, free zones) and sanctions for non-compliance.
4. Port, Straits and Port State Control (PSC) regulations
   • Regulate vessel traffic in Turkish ports and the Straits, technical and safety requirements and the PSC inspection regime applicable to foreign-flag ships.

These rules apply regardless of the flag or chosen contract law. Even where the bill of lading is subject to English law and London arbitration, mandatory Turkish provisions can still play a decisive role whenever the dispute is connected to a Turkish port, Turkish cargo interests or a ship arrest in Turkey.

1.2 International and regional instruments

In parallel with domestic law, Turkey participates in various international and regional frameworks, including:

• International instruments and model rules on carrier liability, limitation and maritime liens, which strongly influenced the drafting of the TCC’s maritime section.
• Regional Port State Control Memoranda of Understanding, especially in the Black Sea and Mediterranean, which coordinate inspection regimes for foreign-flag vessels.

The practical result is a hybrid environment: foreign ships are judged both against international standards and against detailed Turkish statutory rules.

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2. Cabotage: What Foreign-Flag Vessels Can and Cannot Do

2.1 The core rule: international yes, domestic no

The Cabotage Law is the starting point for assessing what a foreign-flag vessel may do in Turkish waters. In broad terms:

• Foreign-flag ships may carry goods between foreign ports and Turkish ports (imports and exports).
• Foreign-flag ships may not carry goods or passengers between two Turkish ports, or offer regular domestic feeder or coastal services.
• Port services such as towage, pilotage and many types of harbour operations are reserved to Turkish-flag vessels and Turkish nationals, subject to limited exceptions.

A straightforward example illustrates this:

• A foreign-flag container ship loading in Valencia and discharging in İstanbul clearly performs international carriage, which is permitted.
• The same ship loading containers in İstanbul for discharge in İzmir would be performing domestic carriage, which falls under the cabotage monopoly and is therefore prohibited.

2.2 Operational design in light of cabotage restrictions

Foreign shipping lines and tramp operators normally respect cabotage rules through careful route and service design:

• Line services are structured so that each voyage leg to or from Turkey has at least one foreign port.
• Domestic feedering and short sea shipping within Turkey are handled by Turkish-flag feeder vessels, even if those vessels operate as part of a global carrier’s network.
• Standard operating procedures require commercial departments not to accept bookings that would result in a foreign-flag vessel performing prohibited domestic carriage.

Some operators consider more complex structures (e.g. bareboat chartering into the Turkish flag or using Turkish affiliates). These options are possible but must be analysed in detail under flag, registration and ownership rules and under the TCC provisions on ship registry and nationality.

2.3 Special rules for yachts and non-commercial craft

Tourism legislation introduces specific rules for foreign private yachts. Such yachts may navigate Turkish waters under certain conditions, but they are not allowed to operate as commercial carriers of goods or passengers for reward.

For purposes of carriage of goods to Turkey, foreign operators should assume that only duly registered Turkish-flag commercial vessels may perform domestic sea carriage and cabotage-related port services.

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3. Entering Turkish Ports: Port State Control and Navigation

3.1 Pre-arrival and entry formalities

Before arrival at a Turkish port, foreign-flag vessels must comply with a number of pre-arrival notification and documentation obligations, typically including:

• Advance notice of expected time of arrival, last and next ports, ship particulars and cargo details
• Transmission of security and ISPS-related information, including the ship security plan status and security level
• Declaration of dangerous or polluting cargoes and bunkers
• Presentation, on request, of statutory certificates (safety, construction, radio, pollution prevention, crew certificates, P&I cover)

Most of these notifications are made by the vessel’s local shipping agent, but responsibility ultimately lies with the shipowner and master. Non-compliance can result in delays, extra costs, and in serious cases, refusal of entry until deficiencies are remedied.

3.2 New Port State Control implementation regime

A new Port State Control Implementation Regulation has recently entered into force in Turkey, markedly tightening supervision over foreign-flag vessels:

• The regulation applies to foreign-flag ships calling at or anchoring in Turkish ports or offshore terminals, with limited exceptions (e.g. warships, non-commercial state vessels, fishing vessels and small wooden craft).
• Inspections are risk-based and focus on compliance with international conventions on safety, pollution prevention and seafarers’ working and living conditions.
• Ships with repeated detentions in Turkey or under regional PSC MOUs can face bans from Turkish ports:
  • Three detentions within 36 months can trigger a 12-month ban.
  • Further detentions may extend the ban up to 24 months.
  • After two bans, another detention may result in a permanent prohibition from entering Turkish ports.

For shipowners and managers, this means that Turkey must be treated as a high-consequence PSC jurisdiction: persistent technical or manning deficiencies can cut a vessel off from the Turkish market for long periods.

3.3 Navigation in the Turkish Straits and coastal waters

The Turkish Straits system (İstanbul Strait, Çanakkale Strait and Sea of Marmara) is governed by specific traffic regulations and Vessel Traffic Services (VTS). Recent amendments modernise reporting and traffic separation rules and emphasise safety and environmental protection.

Foreign-flag vessels using the Straits to reach Turkish ports must:

• Comply with routeing and speed instructions,
• Observe pilotage and tug requirements where applicable, and
• Understand that any collision, grounding or pollution incident in these sensitive waters can rapidly escalate into civil liability, administrative fines and reputational damage.

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4. Customs and Trade Compliance for Goods Arriving by Sea

4.1 Summary declaration and customs status of arriving goods

When a foreign-flag ship brings goods into Turkey, the Customs Code requires that:

• A summary declaration and manifest be lodged within prescribed time limits after arrival, usually electronically though the customs IT system.
• The goods be presented to customs and placed under a customs-approved treatment or regime (import, transit, warehousing, free zone, re-export, etc.) within certain deadlines.

In practice:

• The carrier or its agent is responsible for lodging the summary declaration and manifest.
• The importer or its customs broker is responsible for the detailed customs declaration and for choosing the appropriate regime.

Where discrepancies exist between the manifest and the physical cargo (short-landed or over-landed goods, mis-descriptions, wrong HS codes), customs authorities may impose administrative fines or take more serious action.

4.2 Exposure of the carrier and contractual allocation of risk

Carriers, NVOCCs and freight forwarders can face significant exposure in customs matters, especially when:

• Dangerous goods are declared inaccurately or incompletely;
• Prohibited or restricted items are mis-described;
• Transit regimes are not properly closed or documentary obligations are neglected.

To manage this exposure, prudent foreign-flag carriers:

• Align booking systems, BL data, manifests and customs filings through robust data integrity controls;
• Insert clear and enforceable indemnity clauses in contracts with shippers, NVOCCs and freight forwarders;
• Implement procedures for internal review of high-risk cargoes (e.g. dual-use items, chemicals, waste, military or strategic goods).

4.3 Sanctions, trade restrictions and sensitive trades

Customs and port entry issues in Turkey are increasingly intertwined with sanctions and foreign policy measures. Recent practice demonstrates that Turkey may:

• Restrict or prohibit port access for vessels flying the flag of, or owned/controlled by, certain states;
• Impose limitations on ships carrying sensitive cargoes (such as weapons or ammunition) to specified destinations;
• Adjust airspace and port usage rules in response to international crises.

For foreign-flag carriers, this creates a moving compliance target. Effective risk management requires:

• Real-time sanctions screening for counterparties and cargoes;
• Contract clauses allowing vessels to decline or deviate from sanctions-sensitive voyages;
• Close coordination between legal, operations and chartering departments whenever a voyage involves higher political or sanctions risk.

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5. Contracts of Carriage, Bills of Lading and Turkish Law

5.1 The TCC regime for contracts of carriage of goods by sea

The maritime section of the TCC sets out a detailed regime for contracts of carriage of goods by sea. Key features for foreign-flag carriers include:

• The law distinguishes between the contractual carrier and the actual carrier, assigning liability rules to each and governing their relationship.
• The carrier’s period of responsibility is generally defined as the time during which it has custody of the goods – usually from the time of acceptance at the port of loading until delivery at the port of discharge – rather than only “tackle to tackle”.
• The carrier is under a duty to provide a seaworthy ship, properly manned, equipped and supplied, and to load, stow, carry and discharge the goods properly and carefully.
• Liability rules are influenced by international cargo regimes: the carrier is presumptively liable for loss, damage or delay occurring during the period of responsibility, subject to limited defences.
• The TCC provides SDR-based limitation of liability per package or kilogram of gross weight, again reflecting modern conventions.

Most of these rules have a mandatory character: contractual clauses that attempt to reduce liability below statutory limits or remove core obligations are vulnerable to being held invalid by Turkish courts.

5.2 Bills of lading for shipments to Turkey

In the carriage of goods to Turkey, the primary contractual document vis-à-vis cargo interests is the bill of lading (BL). Under Turkish practice:

• The BL functions as a receipt, evidence of the contract of carriage and, if negotiable, a document of title.
• The carrier must issue a BL on demand once goods are loaded, containing essential information about the cargo and voyage.
• Endorsement and transfer of the BL transfer the right to demand delivery and to assert cargo claims.

Many standard BL forms used by foreign-flag liner operators:

• Choose foreign law (commonly English law) and foreign courts or arbitration as the dispute resolution forum;
• Incorporate a clause paramount referring to the Hague or Hague-Visby Rules.

When a cargo dispute is litigated in Turkey, however, the court will examine the BL in light of the mandatory provisions of the TCC. This may result in:

• Application of TCC liability and limitation rules, even if the BL text appears to provide otherwise;
• Scrutiny of time-bar clauses and jurisdiction clauses to ensure they do not contradict statutory protections granted to cargo interests under Turkish law.

5.3 Charter parties and back-to-back risk

Behind many BLs lies a voyage or time charter party between the shipowner and a charterer. Under Turkish law:

• The charter party regulates the internal relationship between owner and charterer (freight/hire, off-hire, laytime, demurrage, bunkers, etc.).
• The BL governs the external relationship with shippers, consignees and lawful holders.

Foreign-flag owners must ensure that the charter party and BL regime are properly aligned, particularly regarding:

• Limitation of liability and law/jurisdiction clauses;
• Allocation of responsibility for customs compliance, dangerous goods and sanctions-sensitive cargo;
• Indemnities in favour of owners where charterers’ employment orders expose the vessel to cabotage violations or PSC risks.

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6. Carrier Liability, Limitation and Time Bars

6.1 Basis of liability and defences

Under the TCC’s maritime provisions, the carrier:

• Is presumptively liable for loss, damage or delay to the cargo occurring during its period of responsibility;
• Can invoke certain defences and exonerating circumstances (for example, navigational error, perils of the sea, inherent vice of the goods or fault of the shipper), but retains the burden of proving the defence;
• Must demonstrate proper performance of its duties regarding seaworthiness and care of cargo to rely effectively on these defences.

In serious cases involving reckless conduct or intentional wrongdoing, the carrier may lose its right to limit liability.

6.2 Limitation of liability

The TCC allows the carrier to limit liability through monetary caps calculated in Special Drawing Rights per package or per kilogram, broadly in line with levels seen in modern cargo conventions.

In addition, shipowners may be able to rely on global limitation of liability rules for certain maritime claims (including some cargo claims), subject to the specific conditions and reservations of Turkish law.

Foreign-flag carriers should:

• Ensure that internal claims handling procedures are designed around these statutory ceilings;
• Check that P&I coverage corresponds to potential exposure under the TCC and under any international limitation regime that may apply.

6.3 Time bars for cargo claims

Claims arising out of contracts of carriage of goods by sea are subject to short limitation periods under Turkish law (commonly one year from delivery or the date when delivery should have taken place).

These deadlines:

• Are applied strictly by Turkish courts;
• Require cargo interests to act promptly in obtaining surveys, reserving rights and starting proceedings;
• Require carriers to keep accurate records of dates of loading, discharge and delivery.

Foreign-flag carriers should maintain a robust claims diary system to track potential recourse claims against subcontractors or actual carriers so that those recourse actions are not time-barred before they can be filed.

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7. Ship Arrest, Security for Claims and Dispute Resolution

7.1 Ship arrest in Turkey

Turkey’s modern maritime legislation, inspired by international conventions, allows arrest of ships to secure maritime claims. Principles and procedures are set out in the TCC, supported by international models on maritime liens and mortgages.

In practice:

• Cargo owners, charterers, bunker suppliers and other maritime claimants can apply to the competent Turkish court for an arrest order against a foreign-flag vessel while it is in a Turkish port.
• The arrest is typically granted on an ex parte basis if the claimant demonstrates the existence of a maritime claim and a risk that the claim will not otherwise be satisfied.
• The vessel will usually be released upon provision of adequate security (e.g. bank guarantee, P&I club letter of undertaking, cash deposit).

For foreign-flag owners and charterers, this means that a dispute based on carriage of goods to Turkey may quickly escalate into urgent proceedings, with immediate operational and financial impact.

7.2 Jurisdiction and arbitration versus Turkish courts

Standard BLs and charter parties often contain clauses providing for:

• Foreign governing law (for example, English law); and
• Exclusive jurisdiction of foreign courts or arbitration institutions (such as London maritime arbitration).

Under Turkish private international law, such clauses are generally respected in commercial maritime disputes with a foreign element, but they do not fully exclude the operation of Turkish mandatory rules or prevent ship arrest in Turkey:

• A claimant may still seek to arrest a ship in Turkey as security, even if the underlying merits are to be decided by a foreign tribunal.
• Turkish courts may decline jurisdiction on the merits in favour of the agreed foreign forum, but only after assessing the validity and scope of the jurisdiction clause.
• Mandatory TCC provisions, particularly those protecting cargo interests, can influence the analysis.

Foreign-flag operators must therefore treat jurisdiction and arbitration clauses not as absolute shields, but as part of a broader risk-management framework in which Turkish courts and enforcement mechanisms remain highly relevant.

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8. Practical Compliance Checklist for Foreign-Flag Operators

8.1 For shipowners and managers

Owners and technical managers of foreign-flag ships calling at Turkish ports should consider at least the following:

1. Cabotage compliance
   • Design rotations so that foreign-flag ships never perform domestic carriage between Turkish ports.
   • Educate chartering and operations teams about the cabotage restrictions and build them into voyage instructions and charter party clauses.
2. Port state control readiness
   • Treat Turkey as a high-consequence PSC jurisdiction and maintain vessels in a condition that will withstand detailed inspections.
   • Monitor PSC histories (both in Turkey and in regional MOUs) and take early corrective action on recurring deficiencies.
3. Documentation and customs risk
   • Align BL data, manifests and summary declarations; institute internal checks for high-risk cargo.
   • Clarify in contracts which party is responsible for customs formalities and how customs penalties are allocated.
4. Sanctions and political risk
   • Maintain up-to-date internal guidance on Turkish port restrictions and sanctions.
   • Ensure charter parties allow refusal of cargo or deviation where continuing with a voyage would breach sanctions or expose the ship to a port ban.
5. Claims and arrest preparedness
   • Agree clear procedures with P&I clubs for urgent situations such as cargo damage, pollution incidents or potential ship arrests.
   • Keep standard forms of security (e.g. draft wording for bank guarantees and letters of undertaking) ready for quick use.

8.2 For charterers, freight forwarders and cargo interests

Charterers, NVOCCs and traders organising carriage of goods to Turkey on foreign-flag ships should:

1. Check the legal capacity of the ship
   • Make sure that the intended voyage does not involve prohibited domestic carriage; if a domestic leg is needed, arrange a separate Turkish-flag feeder solution.
2. Negotiate sensible contract terms
   • Pay attention to law and jurisdiction clauses, particularly where there is a real possibility of litigation or ship arrest in Turkey.
   • Negotiate allocations of customs, sanctions and dangerous goods risks that reflect each party’s control and expertise.
3. Protect cargo claims
   • Arrange appropriate cargo insurance, taking into account TCC liability limits and time bars.
   • In the event of damage, organise independent surveys at Turkish ports and send timely written reservations to carriers.
4. Plan for enforcement
   • Understand that, if a foreign-flag vessel calls at a Turkish port, ship arrest in Turkey can be a powerful enforcement tool.
   • Consider early whether security should be demanded or whether settlement discussions should be combined with negotiation of security instruments.

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9. Conclusion

Carriage of goods to Turkey by foreign-flag vessels is a daily reality of international trade. Yet it operates in a legal environment that combines:

• Strict cabotage rules, reserving domestic sea carriage to Turkish-flag ships;
• An increasingly assertive port state control regime;
• Detailed customs and sanctions compliance requirements; and
• A modern maritime code (TCC) that codifies carrier liability, limitation and ship arrest mechanisms in sophisticated detail.

For shipowners, charterers, NVOCCs and traders, the key is not to avoid Turkish ports, but to approach them with a clear legal strategy: carefully designed voyages, robust internal compliance procedures, contracts aligned with Turkish mandatory law and an informed approach to dispute resolution and ship arrest.