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Ghana. THE FREE ZONE ACT, 1995
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GHANA

THE FREE ZONE ACT, 1995

(No 504)


PART I - FREE ZONE DEVELOPERS

PART II - ESTABLISHMENT OF FREE ZONES; DEVELOPERS OF FREE ZONES

PART III - FREE ZONE ENTERPRISES

PART IV - LICENCING

PART V - IMPORT AND EXPORT

PART VI - INCENTIVES

PART VII - ADMINISTRATION AND MISCELLANEOUS PROVISIONS


In exercise of the powers conferred on the Minister responsible for Trade and Industry by sections 26(2) and 41 of the Free Zone Act 1995 (Act 504), and after consultation with the Minister responsible for customs and exercise and the Commissioner of Customs, Excise and Preventive Service in accordance with section 26(2) of Act 504, these Regulations are made this 22nd day of February, 1996.

 

PART I - FREE ZONE DEVELOPERS

Section 1. Establishment of Free Zones Board

There is established by this Act a Board to be known as the Free Zones Board, referred to in this Act as the "Board".

Section 2. Composition of the Board

Section 3. Functions of the Board

The functions of the Board are to

Section 4. Tenure of office of members of the Board and allowances.

Section 5. Meetings of the Board.

Section 6. Committees of the Board

The Board may for the discharge of its functions appoint committees of the Board comprising members of the Board or non-members or both and may assign to them such functions as the Board may determine except that a committee composed entirely of non-members may only advise the Board.

 

PART II - ESTABLISHMENT OF FREE ZONES; DEVELOPERS OF FREE ZONES

 Section 7. Declaration of Free Zones.

Section 8. Qualification of free zone developers.

a free zone unless it is a body corporate registered under the Companies Code 1963 (Act 179) or a partnership registered under the Private Partnership Act 1 962 (Act 152).

Section 9. Rights and responsibilities of a free zone developer.

Section 10. Sub-contracting by developers.

 

PART III - FREE ZONE ENTERPRISES

 Section 11. Export free zone enterprises

Subject to the provisions of this Act any person may apply for a licence to establish an enterprise in a free zone.

Section 12. Qualification of enterprise.

and is the holder of a licence authorising the carrying on of that trade, business or industry under this Act.

Section 13. Rights and responsibilities of a free zone enterprise.

Section 14. Change of line of production.

A free zone enterprise may change its production lines and process as often as it considers necessary subject to prior approval of the Board.

 

PART IV - LICENCING

Section 15. Application for licenses to develop a free zone or operate an enterprise in a free zone

Section 16. Grant of license to developers and enterprises

Section 17. Conditions of license

The Board may attach to a license such conditions thinks appropriate concerning employment skills, job opportunities and degree of export orientation.

Section 18. Revocation

Section 19. Register

Section 20. Transfer of license

No licensee shall transfer a license issued in respect of it to any other person without the prior approval of the Board.

 

PART V - IMPORT AND EXPORT

 Section 21. Non-application of import laws to free zones

The Laws for the time being in force relating to the importation and exportation of goods and services other than consumer goods for commercial purposes shall not apply to -

Section 22. Exemption from taxes of imports into free zone areas

The imports of a free zone developer, sub-contractor or enterprise into a free zone single-factory zone shall be exempt from direct and indirect taxes and duties.

Section 23. Sales in national customs territory

Section 24. Sales from national customs territory to free zones

Section 25. Entry into free zone by officers

Section 26. Responsibility of Customs Excise and Preventive Service

Section 27. Missing dutiable goods

Where goods stored in a free zone are found to be missing without an acceptable explanation, the Commissioner may request the licensee to pay the duty on the goods at the rate in force at the time in addition to any penalty which may be imposed by the Commissioner.

 

PART VI - INCENTIVES

Section 28. Tax concession

Section 29. Investors

A foreign investor may take and hold a maximum of 100 percent of the shares in any free zone enterprise.

Section 30. Investments guarantees, transfer of profits

Subject to this section any enterprise in a free zone shall be guaranteed unconditional transfer through any authorized dealer bank in free convertible currency of: -

Section 31. Investment guarantees, transfer of profits

Section 32. Dispute settlement procedures

Section 33. Operation of foreign currency account

Section 34. Employment in free zones

Section 35. Investment guarantees, transfer of profits

 

PART VII - ADMINISTRATION AND MISCELLANEOUS PROVISIONS

 Section 36. Secretariat of the Board

Section 37. Monies for the expenditure of the Board

There shall be provided to the Board by Parliament such monies as it may require to meet its expenditure.

Section 38. Annual Report

The Minister shall submit to Parliament as soon as practicable and in any event not more than six months after the end of each financial year a report dealing generally with the activities of the Board during the financial year to which the report relates.

Section 39. Offenses by corporate bodies

Section 40. Smuggling

A person who: -

commits an offense an is liable on conviction to imprisonment of not less than three months or more than five years.

Section 41. Regulations

Section 42. Repeal

The Ghana Industrial Free Zone authority Decree 1979 (S.M.C.D. 157) is hereby repealed.

Section 43. Interpretation

In this Act unless the context otherwise requires:-

"Center" means the Ghana Investment Promotion Center;

"Commissioner" means the Commissioner of Customs, Excise and Preventive Service;

"enterprise" means an industry, project, undertaking or business for commercial purposes or any part of it;

"free zone" means an area or building declared as a free zone by publication in the Commercial and Industrial Bulletin and includes single factory zones, free port, free airport, free river or lake port;

"developer" means a person who acquires a free zone area and is licensed for its use or uses it for operations allowed under this Act or rents or sells it or provides services to enterprises which wish to carry on or are carrying on business within the zone and included agents or subcontractors of the developer;

"domestic enterprise" means am enterprise incorporated in Ghana and operating outside a free zone;

"goods" include both animate and inanimate thing;

"importer" and "exporter" means respectively owner or person for the being in possession of or beneficially interested in any goods at the time of the importation or exportation;

"Minister" means Minister responsible for Trade and Industry;

"single factory zone" means a factory or building declared as a free zone;

"national exporter" means any exporter other than a free zone exporter;

"Revenue Service" means Customs, Excise and Preventive Service and the Internal Revenue Service.



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