Free Zone Act, 1995.

This Act enables the establishment of free zones for the promotion of economic development, to provide for the regulation of activities in free zones and for related matters. The Act establishes a Free Zones Authority and regulates its composition, functioning and functions. The Declaration of a Free Zone is made by the President, on the recommendation of the Board, which is the governing body of the Authority. Such declaration shall also specify the area and the scope of activities in the free zone concerned. A body corporate registered under the Companies Act or a partnership registered under the Incorporated Private Partnership Act can be licensed to develop and/or manage the Free Zone under this Act as Free Zone Developer. Their rights and responsibilities are detailed by the Act and can be sub-contracted. Also enterprises can be established in a free zone their qualifications, rights and responsibilities are fully described by the Act. Also the licensing to develop, manage or establish an enterprise in a free zone is regulated (the application for a licence, its grant, its conditions, its revocation, the register of licences and its transfer). Ina free zone import laws are not applied and the imports of a free zone developer, subcontractor or enterprises into a free zone are exempt from direct and indirect taxes and duties. The sales of up to thirty percent of the annual production of good and services can be authorized in a free zone and the sales from a national territory to a free zone are to be considered as exports. The Act also consider the incentives foreseen for free zone developers and licensed enterprises (like the exemption from payment of income tax on profits for the first ten years from the commencement of operation and the reduction after; the unconditional transfer through authorized dealer banks in a free convertible currency; guarantees against expropriation). Dispute settlement procedures are set by article 32 while the employment and the residence in free zones are regulated by articles 34 and 35. Administration and miscellaneous provisions terminate the Act.