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There is no definition of foreign natural and legal persons in the Public Procurement Law. But “Domestic Tenderer” is defined in the Law as “natural persons who are the citizens of Republic of Turkey and legal persons established in accordance with the Laws of Republic of Turkey.”
According to this definition,
- Natural persons who are not Turkish Citizens,
- Legal persons who are not established in accordance with the Laws of Republic of Turkey
will be considered as foreign tenderers in the implementation of Public Procurement Law.
The previous version of the definition of “Domestic Tenderer” was “natural persons who are the citizens of Republic of Turkey and legal persons who are formed by these persons” So, a legal person was considered as domestic tenderer, only if its partners are Turkish citizens. But this article was amended in 2003 and after this amendment, “to be established in accordance with the Laws of Republic of Turkey” is sufficient to be considered as a domestic legal person. The condition of citizenship of Turkey for the partners of the legal person has not been looked for any more.
Being a domestic tenderer or not, has some consequences for the public procurements in Turkey:
If the estimated cost of the procurement is below the threshold (stated in the article 8 of the Law), the contracting authorities may decide to open the procurement only to the domestic tenderers.
A price advantage could apply to domestic tenderers up to 15 % in the procurement of services and works. In the procurement of goods, a price advantage up to 15 %, could apply to tenderers who offers domestic goods. 15 % price advantage is mandatory, for the procurements of middle and high technology goods.
The period for the signing of the contract is longer for the foreign tenderers after the tenderer is invited for the contract signing.
The method of submission of the qualification documents is different for the foreign tenderers. Foreign tenderers should submit the equivalent documents of the ones stated in tender document to participate in the procurement.