When companies carry out the destruction procedure themselves, they may miss out on certain advantages.
I would briefly like to mention the advantages they can fully benefit from when they receive consultancy from us for destruction procedures. When the destruction process is carried out in accordance with the official procedure, companies pay up to 20% less in provisional tax based on the cost of the destroyed products.

This article was published in Medikal News Magazine.

We interviewed Merdan Altınöz, Founding General Manager of Scrap Destruction Consultancy Services Inc., about medical device destruction:

Can you tell us about your company?

We are Turkey’s first destruction consultancy company. We can say that the establishment of Scrap Consultancy came somewhat as a result of the industry’s demand. Let me briefly summarize our founding process. We carried out our first destruction consultancy in 2007 with the destruction of medical devices. At the time, we were providing consultancy services under the umbrella of my accounting firm, “Merdan Altınöz Certified Public Accountancy.” Thanks to the advantages of my profession, we progressed quickly. Then, we began to receive high demand from leading companies in the medical device sector. Subsequently, we received destruction consultancy requests from different industries as well, and in order to respond to these needs in a corporate structure, we established Scrap Consultancy Services Inc. in 2013. Over time, we strengthened our team to serve more clients simultaneously. Thanks to the positive references from companies we’ve worked with for over ten years, we continue to provide “Destruction Consultancy” services to our clients in accordance with relevant regulations and across new sectors.

Can you talk about the advantages destruction procedures offer to companies?

When companies handle destruction procedures on their own, they may miss out on certain benefits. I’d like to briefly explain the advantages they can fully benefit from when they receive consultancy from us. When the destruction process is carried out in compliance with the official procedures, companies pay up to 20% less in provisional tax based on the cost of the destroyed products. Let me give an example: Let’s say that Company XYZ had a profit of 4 million TL in the last quarter of 2017. Normally, the tax payable on this profit would be 800,000 TL. Also, suppose that the cost of the stock to be destroyed in this period is 3 million TL. If this destruction is carried out within the official framework, the tax advantage for the company would be 600,000 TL. That means the company would pay 200,000 TL instead of 800,000 TL in tax, making a significant contribution to its budget. Additionally, when these procedures are performed, companies can obtain accurate financial reports and present reliable financial statements to authorities and shareholders by showing net stock values. Nowadays, most companies store their products not in their own warehouses but by renting space from logistics firms. Performing destruction in a timely manner can help reduce warehouse rental costs. For companies using their own warehouses, it also helps free up space for more efficient use. Our motto is “We Know the Value of Your Time.” When companies handle destruction themselves, it can take up to two months, and they may not benefit from all available advantages. However, companies that go through the destruction process with us achieve correct results in a shorter time. A properly completed destruction process also contributes to environmental protection and occupational health improvement. I recommend companies carry out destruction every quarter to benefit from the advantages I mentioned.

Which products need to be destroyed, and what sectors do you serve?

Products with expired shelf life, quality issues, or those recalled by customs or the relevant ministry must be destroyed. The sectors we currently provide destruction consultancy to include:

• Medical Devices
• Human Pharmaceuticals
• Animal Health Products
• Chemicals
• Cosmetics and Cleaning Products
• Food and Beverage Products
• Packaging Products
• Electronic Devices

Medical waste has a special place in the destruction process. How is medical waste destroyed?

This is a topic we take very seriously; however, unfortunately, there is no clearly defined procedure within the scope of the “Regulation on the Control of Medical Waste” and other legal regulations. We handle all correspondence and appointment scheduling with both public and private institutions. We conduct identification and inventory of the products to be destroyed with the officials from these institutions. Then the actual destruction is carried out, the notary report is prepared, and the notifications to the relevant authorities are made, completing the process.

Destruction of medical devices and waste is crucial. Are enough destruction procedures being carried out? Are there those who avoid it?

We do encounter companies that haven’t performed any destruction for years. When we ask why, we find that they see the legal process as too complicated and lengthy, are unfamiliar with the procedure, or are worried about having problems with official institutions. Some are concerned about seeing their products appear elsewhere after destruction, and I must say that their concerns are valid. They are often hesitant to work with transport and destruction companies. As a result, they either don’t carry out the destruction or postpone it until the last moment. We have new projects aimed at eliminating these concerns, and we are working hard to present them to our clients. We will announce our new projects at the Expomed Fair, which starts on March 22, 2018. We would be pleased to host our visitors for four days in Hall 2 at the TÜYAP Congress Center and inform them about our innovations. Those unable to attend the fair can follow updates through our website at “scrap.com.tr”.

Is there any penalty applied by the government for companies that do not perform destruction?

Only the Ministry of Health imposes penalties. The Ministry gives a deadline for the company to complete the destruction of products subject to recall. If destruction is not performed, the company may face administrative fines.