Maritime and Cabotage Day is celebrated in Türkiye since 1 July 1926, the date on which the law numbered 815 on Naval (Cabotage) Transport at Turkish Coasts, and Craft and Trade within Ports and Territorial Waters (“Cabotage Law”) came into force. Cabotage Law implies the sovereignty of the Turkish nation over its territorial waters and costs.
Cabotage Law grants Turkish flagged vessels the exclusive right to transport goods and passengers and to perform towage, pilotage, and other port services regardless of their nature, from one point of the Turkish coasts to another.
The right of navigation and transporting with fixed or floating vessels within the territorial waters are exclusively given to the Turkish nationals.
The right to fish, catch oysters, mussels, sponges, pearls, corals, mother-of-pearl, etc., and to export the same are exclusively left to the Turkish nationals within the territorial waters. The right of carrying out maritime business, and working at the Turkish flagged vessels as mariners are exclusively granted to Turkish nationals as well. However, an exception is introduced in 2013, and the foreigners holding oil rights are provided with the right to carry out oil exploration and production activities within Turkish territorial waters.
The Cabotage Law does not offer a definition for the term ‘Turkish vessel’. What to understand by the term ‘Turkish vessel’? The answer is introduced under article 940 of the Turkish Commercial Code numbered 6102 (“TCC”). First, it is said that all Turkish vessels fly the Turkish flag. To speak of a Turkish vessel, she must be owned by a Turkish national only. In case the vessel is owned by more than one person and the ownership is in shares, the shares owned by the Turkish nationals must be in majority. Likewise, if the ownership is held jointly, the Turkish owners must be in majority.
If the vessel is owned by an institution, association, or foundation that is established under Turkish laws and having a legal entity; she is deemed as a Turkish vessel if the majority of the administrative body consists of Turkish nationals.
A vessel that is owned by a Turkish company is deemed as Turkish if the majority of the administrative authorities are Turkish nationals and the majority of the votes are held by Turkish nationals as per the articles of association of this company. As to the joint-stock companies and limited partnerships, the capital of which is divided into shares; the majority of the shares must be nominative and transfer of the shares to a foreigner is subject to the board of directors' approval.
This note is drafted for the sole purpose to provide general information on the Cabotage Law and legal definition of a Turkish vessel. It should not be interpreted as legal advice or legal opinion on any specific facts or circumstances. For specific questions and concerns, please kindly refer to a legal counsel for advice.
Keywords: Cabotage Act, Maritime and Cabotage Day, Turkish vessel, Maritime trade law, Territorial waters sovereignty, Right to fly the Turkish flag, Maritime activities