Client Alert:

License Holders Will Need to Submit a Letter of Guarantee to the Energy Markets Regulation Authority to Obtain National Markers

Recently, the Energy Markets Regulation Authority (“EMRA”) amended the Regulation on Implementation of National Markers in Petroleum Market (“Regulation”) by means of issuing a new regulation which was published in the Official Gazette dated June 12, 2015 (“Amending Regulation”).

According to the Regulation, all petroleum products need to contain the national marker, a chemical substance which the licensees are obliged to use for verification of the authenticity of their products.

The most important amendment introduced under the Amending Regulation is that all licensees must now provide a letter of guarantee as security for the national marker to be obtained from EMRA. Requests filed by the licensees for the national marker without providing the aforesaid letter of guarantee will not be accepted.

The letter of guarantee shall cover the value of the national marker requested from EMRA and which is currently available in the stock of the licensee. In any case, the security amount under the letter of guarantee cannot exceed TRY 50,000,000.

The letter of guarantee shall be returned upon request in case the licensee can certify that the national marker obtained from EMRA has been used or returned.

The Amending Regulation provides the method for calculation of the national marker value. In this respect, the national marker value is the value corresponding to all kinds of taxes arising from fuel which can be marked with the amount of national marker that has been stolen, lost and/or harmed.

When calculating the national marker value, fuel prices with the highest tax amount amongst the average dealers as announced by the eight distribution companies with the highest transaction volume shall be taken into consideration. These prices shall also be published in the website of EMRA.

In case the national marker delivered to the licensee has been stolen, lost and/or harmed, the licensee shall deposit the value of the national marker to the bank account of EMRA within 7 business days starting from notification served by EMRA. The licensee will not be provided with national marker again unless the licensee submits the bank receipt indicating that the national marker value has been deposited.

If the licensee fails to make such payment or does not provide the bank receipt indicating such payment within the aforesaid time period, then the amount under the letter of guarantee corresponding to the national marker value shall be cashed.

If the cashed amount of the letter of guarantee does not cover the national marker value, the licensee shall be granted 3 business days to make payment of the outstanding national marker value. If the licensee fails to make such payment, then the outstanding amount shall be collected in accordance with the provisions of the Law on Collection of Public Receivables numbered 6183.

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corporate, railway, energy, e-commerce, finance, petroleum, national markers, istanbul, arbitration, foreign awards, regulation, letter of guarantee, advance dividends, natural resources, interim dividends

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