History: 06.01.2025
When we entered the area where the stands were located with the Jewelery Exporters Association President Burak Yakin at last year's "Jewellery Antalya", the participants, including Vice President Ayhan Güner, Board Members Murad Köşker, Hüseyin Şaşmaz, Bilal Talay, Ahmet İshakoğlu and Alper Sözer, surrounded us:
- The quota imposed on gold imports makes us unable to do business or produce. You brought 1350 representatives of 612 companies from 65 countries to "Jewellery Antalya" as a "buyer delegation". We cannot keep prices due to quota. We cannot export as long as the quota continues.
While wandering around the stands with Burak Yakin, we stopped by Eriş Jewelery and listened to the conversation between the company's Chairman Levent Eriş and Zen Pırlanta Chairman Emil Güzeliş:
- If the gold import quota continues like this, there may be people who quit their jobs or close their doors in our sector. Wouldn't it be better if they removed the quota and tried the VAT formula internally?
Burak Yakin also agreed with the tax proposal:
- Instead of blocking our exports with restrictions such as import quotas, steps should be taken to end informality in our sector. The quota may be abolished and 5 percent VAT applied domestically.
Yesterday, we walked around the area where "Jewellery Antalya 2025" took place with 4-5 colleagues, and chatted with Jewelery Exporters Association Vice Presidents Ayhan Güner, Gürkan Merim, Board Members Alper Sözer, Oktay Atasoy, Ahmet İshakoğlu, Mehmet Çakar, Alen Bağ and Murad Köşker. we did.
Ayhan Güner, who served as the President of the Jewelery Exporters Association for 8 years, talked directly about the effects of the quota applied to gold imports:
- I have been in the industry for 45 years. 30 years of our labor is gone. There were practices that paved the way for our exports, especially the Gold Exchange, the Diamond Exchange and the inward processing regime (DIR). The import quota took it all away.
En somut etki üzerinde ısrarla durdu:
He insisted on the most concrete impact:
- Jewelery imports from Italy would not exceed 300-350 million dollars. It increased to 5 billion dollars in 2024. However, we had Italy under our feet. We were number one in production.
He pointed out the price difference created by the quota on gold imports:
- There was a difference of up to 4 thousand dollars in the price of gold per kilo in Turkey compared to the world average. Due to the quota, there was a shortage of raw materials in the market, and this resulted in the difference. Our costs increased, and it was advantageous to bring finished products from Italy.
He reported that this situation was also reflected in last year's "Istanbul Jewelery Show":
- 7-8 Italian companies would participate in our fair in Istanbul by setting up stands. In 2024, the number of Italian companies increased to 30. Let them come, under normal circumstances we would not be afraid of their competition. However, the rising costs due to the quota on imports have brought us to a point where we cannot compete.
He noted that the inward processing regime has come to a halt for the jewelry industry:
- In a sense, we developed DIR. Now they finished it for us. Italy has a nice support for its exporters. The business of Italian companies increased so much due to orders from Turkey that the men started to employ their old masters, whom they had said goodbye to.
If jewelry imports from Italy, which were at the level of 300-350 million dollars, increased to 5 billion dollars, shouldn't the "gold bullion import quota" adopted to reduce the current account deficit be reconsidered?
Our exports seem to be 7.5 billion dollars, but this is not the real number.
I asked Ayhan Güner, Vice President of the Jewelery Exporters Association, about 2024 exports, and his answer was as follows:
- Our exports in 2024 seem to be 7.5 billion dollars. However, in our opinion, the real figure does not exceed 4 billion dollars. Due to DIR closures, exports seem to be 7.5 billion dollars.
Jewelery Exporters Association Board Member Mehmet Çakar intervened:
- There is not much increase in our exports on a per kilo basis. When the price of gold increased, our export figures also increased.
Ayhan Güner stated that one kilo of gold is worth around 55 thousand dollars in December 2023:
- Now a kilo of gold is 85 thousand dollars... This price increase keeps our jewelery exports higher in terms of value.
Half of the shops in Kuyumcukent have locked their doors
Ayhan Güner, Vice President of the Jewelery Exporters Association, summarized the impact of current practices, especially the quota on gold imports and the limitation to authorized intermediary institutions, as follows:
- There are nearly 2 thousand workshops in our sector in Turkey. The rules currently applied in our industry have turned into a system that kills minors. A small number of companies and brokerage firms make money. The little ones are suffering.
He calculated the money that the quota application in gold imports brought to a small number of brokerage firms:
- The price difference in our country compared to international markets provides an extra income of 30 million dollars per month to a small number of brokerage firms.
He conveyed the invitation he issued to the relevant Deputy Ministers at the meetings in Ankara:
- Let them come to Kuyumcukent in Istanbul and see the trouble and pain.
Jewelry Exporters Association Board Member Ahmet İshakoğlu intervened:
- Half of the shops in Kuyumcukent have locked their doors.
Ayhan Güner reminded that there was a problem finding a place in Kuyumcukent until a year or two ago:
- Kuyumcukent was actually the largest production center in the world. Two new sections adjacent to Kuyumcukent came into operation. Those who bought shops there cannot now pay their debts.
Oktay Atasoy, Member of the Board of Directors of the Jewelery Exporters Association, added:
- If the gold import quota is not lifted, small producers will have no chance of survival.
Ayhan Güner underlined the following point:
- The gold price difference has decreased to 700 dollars these days due to low demand, but the cost problem is still not over. This issue especially negatively affects jewelry exporters.
Uzbekistan cut off imports from us, there are people going there for production
Hüseyin Şaşmaz, Board Member of the Jewelery Exporters Association, stated that Uzbekistan has cut its jewelery imports from Turkey:
- Some of those from our sector who went to production abroad chose Uzbekistan as their address.
Ahmet İshakoğlu, Member of the Board of Directors of the Jewelery Exporters Association, examined the issue of going abroad:
- In addition to Uzbekistan, there are people from our sector who go to Egypt and Dubai for production.
Ayhan Güner, Vice President of the Jewelery Exporters Association, put forward the following account regarding those who go into production abroad:
- 40 percent of the manufacturers in the sector are going abroad or are preparing to go abroad. This situation causes Turkey to lose its leadership in jewelry production.
Our president should be released
Ayhan Güner, Vice President of the Jewelery Exporters Association, touched upon the arrest of the President of the Association, Burak Yakin:
- Money is coming to our President's account in 2021. Gold is requested in return. That gold passes through our president's office. Everything is documented, signed by the person who ordered it.
He pointed out that an investigation regarding an issue in 2021 was brought to the agenda towards the end of 2024:
- If there is a problem, why did we wait all this time? MASAK is already closely monitoring and questioning our sector. If there was a problem they could have seen it sooner.
He drew attention to the monetary value of the transaction that led to Burak Yakin's arrest:
- A transaction worth 8 million lira. So, it's not that big of a deal.
Then he made the following call:
- We, as the Jewelery Exporters Association, want our president. We expect him to at least be tried without detention.
512 buyers brought the company to Antalya for 1 million dollars
We asked Ayhan Güner, Vice President of the Jewelery Exporters Association, about the interest in "Jewellery Antalya 2025" and he explained:
- We host more than 1000 representatives of 512 companies from around 60 countries in Antalya for 3-4 days. The cost of this is up to 1 million dollars.
We asked whether the program was within the scope of the "purchase committee incentive" of the Ministry of Commerce, and he answered:
- The organization in Istanbul falls within that scope. They do not accept Antalya. We pay the hosting costs through stand rentals here. So, the sector bears this burden itself.
Then he added:
- "Jewellery Antalya", which started during the presidency of Mustafa KAMAR, was a very correct organization. It brings movement to our industry.
Source : Vahap MUNYAR | Ekonomim Gazetesi