NEWSLETTER-2019-metin

382 NEWSLETTER 2019 Article 19 of the Regulation includes punitive provisions. Ac- cordingly, certain administrative fines varying between TRY 100,000 to TRY 1,000,000 shall apply for the breach of certain listed provisions of the Regulation, subject to revaluation each year. In the event of repetition of the same breach with one year following the application of the first administrative fine, two times the amount of the first fine shall apply. In the event of a third breach within such year, the service permit of the relevant organization shall be cancelled. The owners and shareholders of the organizations whose ser- vice permits have been cancelled, as well as their first-degree family members, cannot apply for an authorization certificate for a period of two years for the same or different service area, either using the same name, or through the change of name or trade name, or through the establishment of a new company. The Regulation also includes several other sanctions relating to harbour pilots, performance bonds, and the authorities of the Fault Determination and Evaluation Commission, which is to be established pursuant to the Regulation. Conclusion The Regulation introduces a two-level permit mechanism for pilotage and towage organisations, namely, operations licences and service permits, and requires several conditions and qualifications to be met in terms of corporate structure, as well as financial, technical and administrative competence. An operations license is a prerequisite to obtain a service permit. One of the most important provisions of the Regulation is that only one pilotage organization shall be granted with a service permit within a specific service area, and such organization cannot provide towage services within the same service area. Public institutions and organizations, as well as organizations that have a con- cession right as a consequence of a privatization process, are exempt from the requirement to obtain a service permit, and such persons are allowed to procure such services from an organization that has a suit- able operations license, with the prior approval of the Administration. The Regulation provides for share transfer restrictions, and imposes administrative fines and other restrictive measures that are applicable for certain breaches under the Regulation.