The Free Trade and Processing Zone Act, no. 12 of 1994

1. This Act may be citedas theFreeTrade andProcessing Zone short title and Act, 1994 and comes into operation on the day appointed by the commencement. Minister by notice published in the Gazette.

2. In this Act - Interpretation. "CAlUCOM"means Caribbean Common Market; "Commission" means the Commission established under section 3; "Free Trade and Processing Zone" means an area declared a free trade and processing zone in accordance with section 6; "House" means the House of Representatives; "Licence"means alicenceissued by theCommission under section 11; ANTIGUA 2 m e Free Trade and Processing Zone No. 12 of 1994. AND Act, 1994. BARBUDA "Minister" means Minister responsible for trade; "prescribed means prescribed by the Commission. Establishment of 3. (1) For the purposes of this Act there is established a Commission. Commission to be known as the Free Trade and Processing Zone Commission. (2) The Commission shall be a body corporate with perpetual succession and a common seal, having capacity to acquire, hold, mortgage and dispose of property, to enter into contracts, to sue and be sued in its corporate name and to do all things necessaty for the purposes of this Act. (3) The service on the Commission of any legal process and notices shall be effected by delivery at the principal office of the Commission. Seal and procedure 4. (1) The Commission shall have a common seal which s h d for sealing be affixed to all deeds, documents andother instruments requiring documents. the seal of the Commission. (2) Any docunkent requiring the seal of the Commission shall be made un the presence of the Commissioner or in his absence the person appointed by theMinister to act as Commissioner and one othermembcr of the Commission authorizedto act in that behalf, who shall buth sign every such document to which the seal is affixedandsuch signing shall be sufficient evidencethat such seal was duly and properly affixed and that the same is lawful seal of the Commission. Acquisition of land 5. For the purpose of establishing a free trade and processing for free trade area. zone, the Governor-General may convey to the Commission a leasehold interest in any vacant Crown land; provided that the interest so conveyed shall not exceed ninety nine (99) years. 1)eclatation of a 6. The Minister may, with the approval of the Cabinet and by free trade and notice published in the Gazette, declare area acquired by the processing zone Commission as a free trade and processing zone for the purposes of this Act. Functions and 7. (1) Subjectto the provisions of this ..4cttheConrmissionmay pwerS of the develop and maintain or may cause to be developed and main- Comnission. tained any land declared to be a free trade and processing zone for use by persons licensed in accordance with section I 1. No. 12 of 1994. The Free Trade and Processing 3 ANTIGUA Zone Act, 1994. AND BARBUDA (2) The Commission may, with the approval of the appropriate Ministry, cause such infrastructureas may be required, to be con- structed, installed or delivered in or to the free trade and processing zone. Such mfrastructureshall include the fcllowing- (a) the construction of roads and highways sufficientto give the free trade and processing zone access to existing international seaports and airports; (b) the construction of electric generating plant and power lines; (c) the installation and maintenanceof lines of telecom- munications essential for the operation of the free trade and processing zone; (d) the installation and nlaintenance of water lines and facilities of sewerage; (e) the provision for installation and maintenanceof a port and the establishment of customs and excise posts. (3) The Commission may with the approval of the appropriate Ministry enter intocontractswith third parties for carryingout the functions set out under this section. (4) The Commission may in carrying out its functions under this Act issue licences to any approved person to operate businesses in the Free Trade and Processing Zone. (5) The Minister may, by writing, give such directions as he considers necessary to the implementation of this Act to the Commission and, the Commission shall carryout such directions.

8. The Commission shall consist of the following persons- Composition and administration of the Commission. (a) the Commissioner appointed under section 10; (b) a chairman appointed by the Minister with the ap- proval of Cabinet (c) four other personsappointed by the Minister witb the approval of the Cabinet.

9. (1) The procedures and meetings of h e Commission shall Meetings and be in accordance wit3 the ~ulesca out in the Schedule. procedures of the Commission. ANTIGUA 4 The Free Trade and Processing Zone No. 12 of 1994. AND Act, 1994. BARBUDA (2) The Minister may, with the approval of the Cabinet, by regulation, amend the Schedule. Appointment and 10. (1) For the purposes of this Act, there shall be a Commis- duties of sioner who shall be appointed by the Minister with the approval Commissioner. of the Cabinet. (2) The Commissioner shall be the administrative head of the Commissionand subject to this Act, performotherduties directed in writing by the Commission. (3) Where the Commissioner is absent or for any reason is unable to perform his duties the Minister may, with the approval of the Cabinet,appointsome other person to act as Commissioner. Procedure for 11. (1) Subject to section 12 (1) any person or company may application and apply on theprescribedformto theCommissionerto e s t d grant of licence. operate any industry or engage in any commercial activity in a free trade and processing zone. (2) The Commissioner shall, within fourteen days of the receipt of any application under this section, submit the applica- tion to the Commission for examination and approval. (3) The Commission may, in the performance of its duties under this section, employ the services of any consultant. (4) Where the Commission is satisfied that the busiiess or enterprise described in the application is not specifically prohibited by law, it shall, subject to section 17 (3) and upon payment of the pr&bed fee, approve the application and issue to the applicant within fourteen days of such payment, a licence, authorizing the applicant toestablishandoperate within the freeuadeand processiig zone the business or enterprise specified in the licence. (5) Where the Commission refuses to approve an application, it shall, within fourteen days of such decision, inform the applicant by writing . (6) There may be attached to every licence such conditions as the Commission may consider necessary including - (i) the time within which the person or company shall commence operation; (ii) the minimum amount of investmentto be made inthe free trade and processing zone; and No. 12 of 1994. The Free Trade and Processing 5 ANTIGUA Zone Act, 1994. AND BARBUDA (iii) a provision in any contract of employment to remu- nerate any person employed in the free trade and processing zone in a currency approved by the Commission. (7) The Minister shall publish in the Gazette the name of any person to whom a licence has been granted under this Act.

12. (1) Any person licenced to operate in a free trade and Licences. processing zone is entitled to engage in any industrial or commer- cial activity not specifically prohibited by law. (2) Such industrial or commercial acitivity may include - (a) the provision to offer free trade and processing zone companiesof services such as financing, maintenance, supplying and other services that may promote the efficient conduct of industrial and commercial transac- tions within the free trade and processing zone; (b) the sale andexchange of goods and services amongst themselves within the free trade and processing zone.

13. (1) The Commission shall in considering the application Conun~sslonnot to for a licence under section 11 ensure that no industrial or approve unlawful commercial activity prohibited by any law is approved. activity. (2) No person shall carry on any industrial or commercial activity within a free trade and processing zone except under and in accordance with a licence issued by the Commission. (3) The Commission may revoke the licence of any licencee who contravenes the provisions of this section or any regulationsmade to give effect thereunder or any condition attached to a licence. (4) In deciding to grant a licence, the Commission shall have regard, in particular, to the extent to which the trade, business or manufacture in respect of which the licence is sought is carried on in the free trade and processing zone. (5) Any person who contravenes subsection (2) is guilty of an offence and is liable on summary conviction to a fine of one hundred thousand dollars and in addition the court may order any property, machinery, or goods of that person within the free trade and processing zone to be forfeited to the Commission. ANTIGUA 6 The Free Trade and Processing Zone No. 12 of 1994. AND Act, 1994. BARBUDA Incentives to 14. Notwithstanding any law to the contrary, and subject only licensed industries. to this Act alicencee shall, during the currency of his licence be- (a) entitled to establish and engage in the industrial or commercial activity specified in the licence without having to obtain any permit or other licences in respect thereof; (b) exempted from the payment of taxes or levies im- posed by the Government in respect of any industrial and commercial activity being carried on within the free trade and processing zone. (c) exempted from the paymentof taxesand other duties on the importation of machinery, equipment, spare parts, construction material and other items needed to construct and operate facilities within the free trade and processing zone; (d) exempted from payment of duty and other taxes on the importation of raw materials and other goods to be incorporated in the products produced or as- sembled within or to be utilized in the performance of services within the free trade and processing zone. (e) exempted from the payment of income and other taxesof any kindother than SoclalSecurity payments and Medical Benefits contributions m d the educa- tion levy on the earnings accruing to any person by virtue of carrying on of his employment in any industrial or commercial activity within the free trade and processing zone; Cf) exemptedfrom the payment of export taxes or levies on the exportationfrom afree trade and processing zone to any place ourtside Antigua and Barbuda of any goods, articles or things that are produced or manufactured by a licencee within the free trade and processing zone. (g) exempted from the payment of taxes of any kind on the repatriationof profits earned in the free-trade and processing zone. Conditions for 15. (1)Subject tothis section, every person who isnot acitizen employment in free of Antigua and Barbuda requires a special work permit to work trade and processing zone. in the Free Trade and Processing Zone. No. 12 of 1994. The Free Trade and Processing 7 ANTIGUA Zone Act, 1994. AND BARBUDA (2) An application to employ a non-citizen shall be submitted to the Commission on a prescribed form and accompanied by such particulars as the Minister may by regulation prescribe. (3) If the Minister is satisfied that there is no suitable person in Antigua and Barbuda with the kind of skill or expertise required, he may approve the application and obtain the required work permit for the proposed employee. (4) Notwithstanding subsection (3) the Cabinet may approve the application of any other person; (5) All employers and employees in a free trade and processing zone shall be subject to the laws in force in Antigua and Barbuda. (6) Any licencee employing any person from outside Antigua and Barbuda shall, at the expiration of the contract of such employee, be responsible for his repatriation,and shall, at the reqest of the Commission or the Government, repatriate such employee.

16. (1) Except as specifically exempted by this Act, every L~censeeto comply licensee, shall comply with this Act, any regulations or by-laws with the Act regulatrons etc. made thereunder or any conditions attached to a licence. (2) Without prejudice to subsection (1) or to any regulations made under this Act, every licensee shall - (a) take reasonable measures to protect the health and safety of its employees; (b) undertake to hold the Commission free and harmless for my loss incurred by the licensee by reason of or ensuing from the fallure in any service to the free trade and processing zone pertaining to the supply of water, electricity, sewerage, telecommunication or other services that are nc>mnallyprovided to or within the free trade and processmg zone and not under the control of the Commission; (c) secure and maintain insurance in the prescribed amount relating to any liability for injury or damage occasioned by or to any person and his property in a free trade and processingzone while that person is on the premises whereon the licensee is conducting businness operations or utilizing the common ap- proaches conuguous to those premises; ANTIGUA 8 The Free Trade and Processing Zone No. 12 of 1994. AND Act, 1994. BARBUDA (d) undertake to hold the Commission free and harmless for any loss or damage to the goods, articles, machin- ery and things upon the premises occupied by the licensee in b e free trade and processing zone for any loss or damage arising from any acts or omission of other licensees; (e) secure and maintain in respect of his employees in a free trade and processing zone workmen's compen- sation insurance and further to ensure that all agents or contractors engaged by him to carry out work for his benefit within the fiee trade and processing zone effect similar insurance. Environmental 17. (1) The Minister in consultation with the Minister respon- protection. sible for the environment may, with the approval of the Cabinet, make regulations prescribing guidelines for the protection and preservation of the environment. (2) Any regulations made under this section may include the requirement for the provision of adequate facilities by licencees for the disposal of industrial and commercial waste in a free trade and processing zone. (3) The Commission shall not approve any application for a licence under this Act unless it is satisfied that the applicant has made adequate provision for the disposal of any waste material that may be produced from activities to be undertaken by him. (4) Every licencee shall beforecommencing operation in a free trade and processing zone undertake to comply with any regula- tions made under this section Movement of 18. (1) The Minister responsible for customs and excise may, goods in and out of free trade and after consultation with the Commission, make regulations relat- processing zone. ing to - (a) to the entry, removal, importationandexportationof goods, articles, machinery or other things into or out of a free trade and processing zone; (b) the seizure and forfeiture of goods, articles, machin- ery or other things intended for or brought into or takenout of a free trade and processing zone in breach of Customs regulations. No. 12 of 1994. The Free Trade and Processing 9 ANTIGUA Zone Act, 1994. AND BARBUDA (2) For the purposes of this section - (a) goods, articles, machinery or other things manufac- tured, processed, assernbled by a licensee and ex- ported out of the free trade and processing zone into a non-free trade and processing zone in Antigua and Barbuda shall be considered as- (i) exports from a non CARICOM country into Antigua and Barbuda; snd (ii) imports into Antigua and Barbuda from a non CARICOM country. (3) Any goods and services sold by companieswithin Antigua and Barbuda and sent into the Free Trade and Processing Zones shall be considered as.i n - ~ ~ r t intos the Free Trade and Processing Zone as exports from Antigua and Barbuda. (4) Exceptasspecifically exempted by the Act any exports and imports in relation to any of the goods, articles, machinery, or other things referred to in this section shall be subject to any law relating to the exportationand importationof such goods,articles, machinery or other things.

19. (1) The Minister responsible for customs and excise may, Establishment of after consultation with the Commission,cause to be etablished a ChstOm Posts in free trade and customs post in a Free Trade and Processing Zone and assign to processing zone. such post, customs officers as he thinks fit. (2) Customsofficers assigned toacustoms post in aFree Trade and Processing Zone shall carry out such duties as are assigned to them and in particular - (a) inspect, monitorand record the entry of all goods into free trade and processing zones, including - (i) the names of the importer and the exporter; (ii) the description of the goods and the declared value of such goods; and (iii) the country of origin of the goods. ANTIGUA 10 The Free Trade and Processing Zone No. 12 of 1994. AND Act, 1994. BARBUDA (b) inspect, monitor and record the exit of all goods from a free trade and processing zone including - (i) the name of the exporter and the importer or consignee; (ii) the description of the goods or services ex- ported or consigned and the declared value of such goods. (iii) the destination of the goods. (3) The officer in charge of customs post in the free trade and processing zone shall, at the end of every month, submit to the Ministerresponsiblefor customsand exciseand theCommission, a report in respect of the information recorded pursuant to subsection (2). (4)The Minister responsiblefor customs andexcise may, after consultation with the Commission, charge such fees as he may consider appropriate for handling and for other Customs services provided in the free trade and processing zone. Commission to 20. (1) The Commission shall charge - charge royalties. (a) any person with whom it has contracted to develop and maintainany are8areafor use as a Free Trade and Processing Zone; (b) any licencee engaged in industrial or commercial activities in a Free Trade and Processing Zone; such royalties as the Commission may determine. (2) The Commission may, from time to time, review any agreement made under this section after consultation with the Minister, but such agreementshall, inany case, be reviewedevery five years. (3) Where any royalty remains unpaid on the due date, the licencee shall pay interest on day to day basis at the rate of 1% above the bank rate on all amounts in arrears. No. 12 of 1994. The Free Trade and Processing 11 ANTIGUA Zone Act, 1994. AND BARBUDA (4) Any contractor or licencee who defaults in the payment of any royalty determinedin respect of his business by the Commis- sion on the due date, shall be deemed to be in breach of a condition of his license and the Commission may revoke his licence. (5) Any licence revoked under this sectionshall not be restored until all arrears of royalties and any interests accruing for non payment of such royalties are fully settled.

21. The revenues of the Commission shall be used for the Investments. following purposes - (a) for the payment of the expenses of the commission; (b) for such investment as may be approval by Cabinet, (c) for payment into the reserve fund; and (d) for the payment of the balance into the Consolidated Fund

22. The Commission shall establish a reserve fund to be ReserveFund. utilized for such purposes as the Minister responsiblefor Finance may approve.

23. (1)The Commission shall keep accountsof its transactions to Accounts and the satisfaction of the Minister responsible for Finance and such audit. accounts shall be audited annually by the Director of Audit or some other suitable person appointed by the Minister for the purpose. (2) The members, officers and servants of the Commission shall grant to the Director of Audit or any other person appointed under this section to audit its 2ccounts access to all books, documents,cash and securities of the Commission and shall give to him on request all such information as may be within their knowledge in relation to the operation of the Commission.

24. (1) The Laws of Antigua and Barbuda shall apply to any Law and legal contract between the Commission and a licencee as well as the proceedings. conduct and operations of any business or enterprise, and gener- ally for goodorderand management in a free trade and processing zone. (2) Any person who is not satisfied by a deckion of the Commis- sion may first appeal to the Minister against that decision. ANTIGUA 12 The Free Trade and Processing Zune No. 12 of 1994. AND Act, 1994. BARBUDA (3) Where any licence is aggrieved by - (a) a decision of the Minister; or (b) any action taken by the Minister or the Government in contraventionof this Act or agreement entered into between the Commission and the licence or a condition attached to a licence; he may appeal to the High Courtagainst that decision or action within thuty days after the receipt of the decision, or noticeof the action,and serve the Commissioner with a written notice signed by him or his m e y that an appeal against the decision has been lodged. (4) The Commissioner shall upon receipt of such notice of appeal transmit to the High Court a copy of the decision or notice of action taken and all documents relating thereto. (5) Upon the hearing of the appeal, the Court may make such order, including an order for cost as it thinks fit. (6) Unless the Court otherwise decides, a decision revoking a licence shall remain in force until varied by an order of the court. Preservation of 25. (1)E ~ q r with the consent of a licencee or as authorized by secrecy and non law, no officer, agent, consultant or attorney of the Commission, or disclosure of any customs or mmlgrahon officer assigned to a free trade and information to unauthorised processing zone shall disclose any information that may have come person. to h s knowledge m the course of his duty to it h d party. (2) Any person who contravenes this section is guilty of an offence and is liable on conviction to a fine of fifty thousand dollars or to imprisonment for five years or to both. Annual report, 26. The Commission shall prepare and present to the Minister within three months, or such longer period as the Minister may allow, after the expiration of each financial year of the Commis- sion a report - (a) dealing generally with the activities of the Commis- sion during its last financial year; (b) containing such information relating to h e proceed- ings and policy of the Commission as in ~ t sopinion can be made public without detriment to the interest of the Commission; and No. 12 of 1994. The Free Trade and Processing 13 ANTIGUA Zone Act, 1994. AND BARBUDA (c) include a statement of its account audited in accor- dance with the provisions of section 23. (2) The Minister shall cause a copy of the report together with the annual statementof accounts and the report of the person who audited the accounts on that statement and on the accounts of the Commission to be h d on the table of the House. (3) Copiesof the Commission'sreport togetherwith the annual statementof accountsand the report of the person who audited the accountson that statementand on the accountsof the Commission shall be published in such manner as the Minister may direct.

27. (1) The Minister may, with the approval of the Cabinet, Regulation. make regulations relating to - (a) the management, supervison, control and operation of a free trade and processing zone; (b) the terns and conditions subject to which licencees may operate within a free trade and processing zone; (c) the reimbursementof the Cc)mission by a licence or ariy person with whom the Conu~lissionhas con- tracted to develop, maintain and operate a free wade and processing zone of expenses incurred by the Commission in the provision of szrvices in the free trade and processing zone; (d) measures that may be taken to ensure the payment of royalties and fees; (e) measures that may be taken to enforce the compli- ance of this Act, any regulation or by-laws made thereunder or any condition included in a licence; Cf) the conveyance,storage, labelling, packing of goods for or from a free trade and processing zone; (g) the granting of permits, licences and approvals; and (h) the better administrationand implementationof this Act. (2) The Commission may with the approval of the Minister make by-laws with respect to the following - ANTIGUA 14 The Free Trade and Processing Zone No. 12 of 1994. AND Act, 1994. BARBUDA (a) the construction of buildings, factories, ports and other structures required in the free trade and pro- cessing zone; (b) the provision of utilities and the rates that may be charged for the services provided; (c) the construction, use and maintenanceof roads, ports and other facilities provided within a free trade and processing zone. SCHEDULE Section 9 Meeting of the 1. The Commission may meet at such times and at such places Commission. as the Chairman may determine.

2. All meetings shall be presidedover by the Commissioner,but where the Commissioner is absent or for any reason unable to attend any meeting of the Commission, the person appointed by the Minister shall preside.

3. AU decisions of the Council shall be by a majority of the votes of the members present and voting.

4. For the proper conduct of the business of the Commission, the Commissioner and two other members shall constitute a quorum.

5. The Commissionershall appoint one of his staff to perform the duties of Secretary to the Commission.

6. The Secretary shall keep a minutes book in which he shall record all thz decisions of hte Commission.

7. All decisions of the Commission shall be signed by the Commissioneror in his absence by the person appointedby the Cabinet to act in his place.

8. The Commission may in its discretion communicate any decision of a general nature to all licencees, but may commu- nicate a decision of a specific nature affecting any person to such person within fourteen days.

9. The Commission may determineits own rules and procedures. No. 12 of 1994. 7'he Free Trade and Processing 15 ANTIGUA Zone Act, 1994. AND BARBUDA Passed the House of Representatives his Passed the Senate this 4th 29th day of August, 1994. day of October, 1994. B. Harris, M. Percival, Speaker. Speaker. S. Walker, S. Walker, Acting Clerk to the House of Representatives. Acting Clerk to the Senate. Printed at the Gavernment Printing Office, Antigua and Barbuda, by Rupert Charity,Government Printer - By Authority, 1994. 8 0 - 1 1.94 [ Price $6.45 1