Pioneer Services and Enterprises Ordinance (Cap. 297)

1. This Ordinance may be cited as the Pioneer Services Short title. and Enterprises Ordinance.

2. In this Ordinance- Interpretation. "construction day" means the day specified in any application .made under section 3 as being the day on or before which it is intended to commence the construction of the pioneer works necessary for rendering the pioneer service or carrying on of the pioneer enterprise to which the application relates; "customs duty" includes any taxes, duties or imports imposed on the importation of any article or thing into the Territory; "pioneer enterprise" means any pioneer enterprise specified in the First Schedule; First Schedule. "pioneer investor" means any person declared to be a pioneer investor under section 3; "pioneer service" means any pioneer service specified in the First Schedule; "pioneer works" means all buildings, structures and other facilities whether within the same curtilage or not, which are used for- (a) housing the plant, machinery, apparatus and other equipment necessary for rendering the pioneer service or carrying on the pioneer enterprise; or for the generation of power for such service or enterprise; (b) the storage of any materials, fuel or stores necessary for rendering the pioneer service or carrying on the pioneer enterprise; (c) the storage of any product of the pioneer enterprise prior to the time at which the property in such product passes to any person other than the owner of the pioneer enterprise; (d) the storage of any goods prior to their being serviced, or after they have been serviced by the pioneer investor; (e) the proper administration of the business of the pioneer investor; (j) canteens, rest rooms, recreation rooms, lavatories, baths and wash rooms for workers employed in rendering a pioneer service or in a pioneer enterprise or in any process incidental thereto; "production day" means the day specified in any application under section 3 as being the day on or before which it is intended that the pioneer works to which the application relates, will commence to produce in marketable quantities the relevant pioneer product or goods or to render the pioneer service referred to in the application. Govemorin Council may

3. (1) Subject to the provisions of section 10 the declare any Governor in Council on the application of any person who per.on to be a desires, or who has already commenced to render a pioneer pioneer inv~5tor. service or to carry on a pioneer enterprise in the Territory, if he is satisfied that it is expedient in the public interest so to do, and in particular having regard to the number of pioneer services or pioneer enterprises already established, or about to be established for the purpose of supplying any product or in general demand and not produced in the Territory or any service in general demand and not obtainable in the Territory, may in his absolute discretion by Order declare such person to be a pioneer investor authorised to produce such products or goods, or to render such service as may be stated in the Orde:1", subject to such terms and conditions as may be specified therein, and for such period of time as may be specified in the said Order. (2) Every application under subsection (1) shall be itI writing and shall- (a) specify the place and locality in which it ~ proposed to establish the pioneer service or pione~t" Pioneer Services and Enterprises. (CAP. 297 3579 enterprise in respect of which the application is made; md . (b) specify the date on which the pioneer works will commence to produce in marketable quantities the relevant pioneer product or goods, or to supply the pioneer service referred to in the application; and (c) specify the construction date which shall be not ' later than twelve months after the date of making the Order.

4. Every pioneer investor shaH be entitled to import into Relieffrom customs duty. the Territory during a period of ten years commencing on the date on which he is declared by Order made under section 3 to be a pioneer investor, my of the articles specified in the Second Schedule free of ~ustoms duty, if he satisfies the Second Schedule. Finmcial Secretary that such articles are imported for the <;.9n~ . strliction, alteration, reconstruction or extension of the ,"g ioneer worksiii~ation to which he was declared under section 3 to be a pioneer investor or for equipping such pioneer works or my extension thereof for the purpose of rendering the relevant pioneer service or carrying on the relevant pioneer enterprise, so, however, that no articles shall ) be imported free of customs duty under this section if the Finmcial Secretary is of opinion that such articles are intended for the purpose of effecting repairs to such pioneer works or extension thereof, or to any apparatus, machinery, applimce or equipment contained in my such works or extension thereof, or for replacing my apparatus, machinery, appliances or equipment in my pioneer works or extension thereof.

5. (1) Every pioneer investor who imports into the Special provisions Territory any articles free of customs duty under the provisions relating to of section 4 shall- articles imported free of customs (a) keep such record in such form md containing duty. such particulars as may be required by the Financial Secretary of the articles so imported by him; md (b) cause such articles to be marked with such mark md in such manner as may be required by the Finmcial Secretary; and (c) permit the Financial Secretary at all reasonable times to inspect such record md to have access to my works, buildings or warehouse under his control for the purpose of examining my such articles which the 3580 CAP. 297) Pioneer Sennas and Enterprises. Financial Secretary may believe to be therein and of satisfying himself of the accuracy of the particulars in relation to such articles contained in such record . . (2) Every pioneer investor who contravenes any of the provisions of this section shall be guilty of an offence and on summary conviction thereof shall be liable to a fine not exceeding two thousand five hundred dollars and in default of payment thereof to be imprisoned for a tenn not exceeding six months. Resttiction upon disposition of

6. (1) No .article imported into the Territory by any arucJes imported pioneer investor free of customs duty under the provisions of free of customs this Ordinance shall be sold, given away or otherwise disposed duties. of by such pioneer investor except- (a) in the case of an assignment of the pioneer works, for the purpose which such articles were imported into the Territory, to the assignee of such works; or (b) upon the pioneer inve~tor paying or giving security to the satisfaction of the Financial Secretary for the payment of an amount equivalent to the amount of customs duty which would have been payable upon the importation of such article but for the provisions of this Ordinance; or (c) after the expiration of five years from the date of the importation into the Territory of such articles. (2) Every pioneer investor who contravenes any of the provisions of this section shall be guilty of an offence and on summary conviction thereof shall be liable to a penalty of three times the value of the article in respect of the disposal of whicb he contravenes such provisions, and in default of paymellt thereof to be imprisoned for a tenn not exceeding six months. Relieffrom income taX.

7. The income of any pioneer investor arising from any pioneer service or pioneer enterprise during the period ofter:a years from the production day thereof or from such other dar as may be substituted therefor by the Governor in Council under the provisions of subsection (3) ofsection 8 (hereinafter' called the tax holiday period) shall be exempt from income tax: Provided that if the end of the tax holiday period does not coincide with the end of an accounting period of any pion~er service or pioneer enterprise the income for the accounnng period in which the last day of the tax holiday period falls shall - - -- --- ..Pioneer SerVices and Enterprises. (CAP. 297 3581 be apportioned between the parts of the said accounting period which respectively precede and follow the end of the tax holiday period and the income thus attributed to the part which precedes the end of the tax holiday period shall be exempt from income tax.

8. (1) Where any pioneer investor fails or neglects- Provision reJatin!\' to (a) to commence to construct the pioneer works in revocauon or recognition of relation to which he is a pioneer investor on or before the pioneer investors. construction day; or ' (b) to be ready to render the relevant pioneer service or to produce the relevant pioneer product or goods in marketable quantities on or before the production day, the Governor in Council may by notice in writing require him within thirty days of such notice either- (i) to commence to construct the pioneer works or to be ready to render the relevant pioneer service or to produce the relevant pioneer product or goods in marketable quanities, as the case may be; or (ii) to establish to the satisfaction of the Governor in Council that his failure or neglect to commence to construct the pioneer works or to be ready to render the relevant pioneer service or to produce the relevant pioneer product or goods in marketable quantities, as the case may be, was due to some cause beyond his control, and that there is a reasonable prospect of his commencing to construct the pioneeI: works or to be ready to render the relevant pioneer service or to produce the relevant pioneer product or goods in marketable quantities as the case maybe, within such time as the Governor in Council may consider to be reasonable. (2) Where any pioneer investor, having been required by notice in writing under subsection (1) so to do, fails to satisfy the Governor in Council- (a) that his failure or neglect to commence to construct the pioneer works, to which such notice relates, on or before the construction day, or to be ready to render the relevant pioneer service, or to produce the relevant 3582 CAP. 297) Pioneer Services and Enterprises. pioneer products or goods at such works in marketable quantities on or before the production day, as the case may be, was due to some cause beyond his control; or (b) that there is reasonable prospect of his commencing to construct such pioneer works or of his being ready to render the relevant pioneer service or to produce the relevant pioneer product or goods in marketable quantities at such pioneer works within such time as the Governor in Council may consider reasonable, the Governor in Council shall revoke the Order made under section 3 declaring such person to be a pioneer investor in relation to the pioneer works and pioneer service or enterprise in respect of which such Order was made, and thereupon the provisions of section 4 and section 7 shall cease to apply to such person in respect of such pioneer works and such pioneer service or enterprise, and the said works shall cease to be a pioneer works. (3) Where any pioneer investor, having been required by notice in writing under subsection (1) so to do, satisfies the Governor in Council- (a) . that his failure or neglect to commence to construct the pioneer works to which such notice relates on or before the construction day, or to be ready to render the relevant pioneer service or produce the relevant pioneer product or goods at such pioneer works in marketable quantities on or before the production day, as the case may be, was due to some cause beyond his control: ..../ and (b) that there is reasonable prospect of his com- mencing to construct such pioneer works or of his being ready to render the relevant pioneer service or to produce the relevant pioneer product or goods in marketable quantities at such pioneer works, as the case may be, within such time as the Governor in Council may consider reasonable, the Governor in Council shall by Order declare that there shall be substituted for the construction day or for the productlon day, as the case maybe,some other day specified in such Order, and thereupon the provisions of this Ordinance shall ~e effect as if the day specified in such Orderwas the construc~on day, or the production day, as the case may be, specified in the application made under subsection (2) of section 3. Pioneer Services and Enterprises. (CAP. 297 3583 (4) Where the Governor in Council is satisfied that any pioneer investor has contravened any of the provisions of this Ordinance, and that having regard to all the circumstances of the case itis expedient so to do, he may revoke the Order made under section 3 declaring such person to be a pioneer investor in relation to the pioneer works and the pioneer investor or pioneer enterprise in respect of which such Order was made, and thereupon the provisions of section 3 and section '7 shall cease to apply to such person in respect of such pioneer works and such pioneer service or pioneer enterprise, and the said works shall cease to be a pioneer works. (5) When any Order made under section 3 is revoked under the provisions of subsection (2), the person who in such order was declared to be a pioneer investor shall be liable to pay to the Financial Secretary all sums which but for the provisions of section 4 would have been payable as customs duty on the importation of any articles for the construction, alteration, reconstruction or extension of the pioneer works in relation to which he was declared under section 3 to be a pioneer investor, or for equipping such pioneer works or any extension thereof for the purpose of rendering the relevant pioneer service or producing the relevant pioneer product or goods. (6) Any sums which may be payable to the Financial Secretary under the provisions of subsection (5) may be recovered in a court of competent jurisdiction as a debt to the Government of the Territory.

9. (1) Subject to the provisions of subsection (3), no Restriction of use of pioneer works . . pioneer works, whether it is still a pioneer works or not, which has been specified as a pioneer works in any Order under the provisions of section 3 shall, without the prior approval of the Governor in Council, be used at any time within ten years from the date of such Order for any purposes other than those of the pioneer service or enterprise for the purposes of which such works were established as a pioneer works. (2) Any person using any such works in contravention of the provisions of subsection (1) shall be guilty of an offence and on summary conviction thereof shall be liable to a fine not exceeding five hundred dollars and in default of payment thereof to imprisonment for any term not exceeding six months and in the case of a continuing offence to a further 3584 CAP. 297) Pioneer Services and Enterprises. fine not exceeding two hundred and fifty dollars in respect of each day during which the offence continues. (3) The provisions of this section shall not apply to any works which have ceased to be pioneer works and in respect of which all sums payable to the Financial Secretary under the provisions of subsection (5) of section 8 have been paid. Power to gran t exclusive licence.

10. (1) Subject to the provisions of subsection (2) the Governor in Council may, on the application of any person grant to such person (hereinafterreferred to as "the licensee") a licence conferring on him the exclusive right to produce in the Territory or to provide in the Territory any of the products Third Schedule. or services specified in the Third Schedule during such period as may be specified in the licence and may from time to time, with the written consent of the licence, vary or amend any term or condition or the period of such licence or add or repeal any term or condition thereof. (2) At any time after the grant of any licence under subsection (1) (hereinafter referred to as "the prior licence") no other licence (hereinafter referred to as "the subsequent licence") conferring the exclusive right to produce any such product or to provide any such service in the Territory shall be granted, whether or not the prior licence shall have expired, to any person except to the grantee of the prior licence or, if such licence shall have been assigned during the cunency thereof, to the last assignee thereof, unless the grantee of the prior licence or the last asignee thereof, as the case may be; has either- (a) ceased to exist; or (b) ceased for one year or more before the date of the application for the subsequent licence to produce such product or provide such service in the Territory; or (c) consented in writing to the grant of the subsequent licence. (3) Any licence under this section shall contain u:JI terms and be subject to such conditions as the Governor Ul Council may specify therein. (4) Notice of the grant of any licence under this section shall be published in the Gazette as soon as practicable afJer the granting of such licence; such notice shall specify th~ naoJ.e of the licensee, the products or services in respect ofwhich~e .._ - - -_ __- - --_. ..... .. _." Pioneer Services and Enterprises. (CAP. 297 3585 '\ licence has been granted and the period or validity of the licence.

11. The Legislative Council may, from time to time, by Variation of Schedules. resolution add to, amend, revoke or replace any of the Schedules.

12.(1) During the continuance in force of any lic~nce Prohibition of manufacture and granted under section 10 no person shall produce in the exportation of Territory or provide in the Territory any of the products or products to which licence sernces to which such licence relates except under or in relates. accordance with the terms of such licence. (2) Every person who contravenes the provisions of subsection (1) shall be guilty of an offence and on summary conviction thereof shall be liable to a fine not exceeding two thousand five hundred dollars and in default of payment thereof to imprisonment for a term not exceeding six months.

13. Where the Governor in Council is satisfied that any Revocation of licence. person to whom a licence has been granted under the provisions of section 10 has contravened- (a) any of the terms and conditions of such licence; or (b) any of the provisions of this Ordinance and that having regard to all the circumstances Qf the case it is expedient so to do, he may revoke any such licence. 14. Where a person convicted of an offence against this Offences by corporation. Ordinance is a body corporate, any person who, at the time of the commission of the offence, was a director or officer of the body corporate shall be deemed to be guilty of that offence unless he proves that the offence was committed without his knowledge, or that he exercised all due diligence to prevent the commission of the offence.

15. (1) No pioneer producer shall employ within the Re3alction on employment. Territory in a pioneer service or in a pioneer enterprise, and no person to whom a licence has been granted under the provisions of section 10, shall employ within the Territory in the p roduction of any product or the rendering of any service specified in such licence, any person not ordinarily resident in 3586 CAP. 297) Pioneer Services and, Enterprises. the Territory unless he obtains the prior approval in writing of the Governor in Council: Provided that if the Governor in Council is satisfied that the services of any skilled workmen, artisans or mechanics or of any person possessing particular professional or technical qualifications or skill or experience are necessary for the efficient conduct of the pioneer service or enterprise concerned or in the production of any product or the rendering of any service referred to in a licence, and that such services cannot be otherwise obtained, the Governor may by pennit in writing authorise the employment within the Territory of such number and classes of skilled workmen, artisans and mechanics, and of persons possessing particular professional or technical qualifications or skill or experience not ordinarily resident in the Territory and for such periods as may be specified in the said pennit. (2) Where by virtue of the provisions of subsection (1) any person is pennitted to employ any person not ordinarily resident in the Territory the Governor may from time to time, as he may think fit, require any such employer to make a return of- (a) the number of persons in each category of work who are ordinarily resident in the Territory; and (b) the number of persons in each category of work who are not ordinarily resident in the Territory, employed by him within the Territory in a pioneer service or in a pioneer enterprise or in the production of any product or in the rendering of any service in respect of which an exclusive licence has been granted under section 10. (3) If any such employer- (a) refuses or without la~l excuse neglects to make a return under this section to the best of his knowledge and belief; or (b) makes or causes to be made a return which is false in any material particular, he shall be guilty of an offence and on summary conviction thereof shall be liable to a fine not exceeding five hUlldred dollars and in default of payment thereof to be imprisoned ~()~ a tenn not exceeding six months. . . . ' ..,: ':'; . " . ; . Pioneer Services and Enterprises. (CAP. 297 3587

FIRST SCHEDULE S.2. (a) Pioneer Service (i) Air Services; (ii) Marine Services; (ii) Laundry Services; (iv) Cement Bulk Storage and Receiving Plant; (v) Broadcasting Service; SRO 14/1973. (vi) Printing and Allied Works; SRO 11/1974. (vii) Permanent Camping Facilities; SRO 29/1976. (viii) Public Transport Services; Resolution 7/1990. (ix) Telecommunications Services; Resolution 7/1990. (x) Lawn Maintenance Services; Resolution 7/1990. (xi) Graphic Arts Enterprise; Resolution 7/1990. (xii) Stone Crushing Enterprise. Resolution 7/1990. (b) Pioneer Enterprise (i) Fish Farming; (ii) Fish Processing or Fressing; (iii) Dairy Farming; (iv) Milk Production; (v) Manufacture of leather goods, sandals, bags and SRO 13/1980. belts; (vi) Manufacture of ice; -SRO 30/1980. (vii) Manufacture of fibreglass products; SRO 10/1981. (vii) Bee-keeping; SRO 11/1981. (ix) Processing and manufacture of salt, spices and SRO 20/1981. related products; (x) Cigar production; SRO 21/1981. (xi) Manufacture of concrete and brick floor tiles; SRO 36/1981. (xii) Sailmaking and production of canvas goods; SR07/1982. (xiii) Manufacture of spare parts for automobiles and SRO 19/1982. boats. '-U"1.L • .,i:I , J Resolution. SECOND SCHEDULE 7/1990. .d S.4. All building materials, tools, plant, machinery, pipes, pumps, _ conveyor belts, or other equipment and appliances and materials and any II.lechanically propelled v,ehicIe_or parts and accessories therefor necesSary for the rendering of any p ioneer service or the carrying on of any pioneer entei=p"iise. - TIllRDSCHEDULE S.10. (i) Air Services; (ii) Cement Bulk Storage and Receiving Plant.