EXPORT PROCESSING ZONES ACT: SUBSIDIARY LEGISLATION

Details: Created: 30 November -0001

INDEX TO SUBSIDIARY LEGISLATION

Export Processing Zones (Licensing) Regulations

EXPORT PROCESSING ZONES (LICENSING) REGULATIONS

[Section 41]

[Currency mentioned in this regulation should be re-denominated as stipulated under S 4 of Re-denomination Act, 2012, read with S 29 of Bank of Zambia Act, 1996.]

Arrangements of Regulations

Regulation

1. Title

2. Interpretation

3. Application

4. Application for permit

5. Application for licence

6. Requirement of further information

7. Determination of application

8. Duration of permit or licence

9. Annual fees

10.

SCHEDULE

SI 34 of 2003.

1. Title

These Regulations may be cited as the Export Processing Zones (Licensing) Regulations, 2003.

2. Interpretation

In these Regulations unless the context otherwise requires–

“Authority” means the Zambia Export Processing Zones Authority;

“Board” means the Zambia Export Processing Zones Authority Board;

“Developer” means a person who holds a permit issued pursuant to section 17 of the Act;

“Investor” means the holder of an export processing licence issued pursuant to section 20 of the Act;

“licence” means an export processing licence granted pursuant to section 20 of the Act; and

“Permit” means a permit granted to a developer pursuant to section 20 of the Act.

3. Application

These Regulations shall apply to Export Processing Zones in the following sectors:

(a) agriculture;

(b) agro-processing; and

4. Application for permit

(1) An application for a developer’s permit shall be in form EPZ 1 set out in the Schedule to these Regulations.

(2) An application for a permit shall be accompanied by a non-refundable application fee of 7,500 fee units and the following documents:

(a) a certified copy of the article of association;

(b) a certified copy of the certificate of incorporation;

(d) a certified copy of the applicant company’s certificate of minimum share capital;

(e) a copy of the latest annual report and audited financial statements if the applicant company has been in operation for more than one year;

(f) a copy of projected financial statements, if the applicant company has been recently incorporated;

(g) a detailed business plan;

(h) a certified photocopy of the passport or National Registration Card showing the nationality and place and date of birth of the person named as a Director or Secretary of the company in the application for incorporation; and

(i) a plan of the proposed facilities drawn to scale showing–

(i) the full extent of the area to be developed as an export processing zone;

(ii) any servitude or building restrictions; and

(iii) the proposed or existing layout of the facilities.

5. Application for licence

(1) An application for a licence to invest in an export processing zone shall be in Form EPZ 2 set out in the Schedule to these Regulations.

(2) An application for a licence shall be accompanied by a non-refundable application fee for 7,500 fee units and the following documents:

(a) memorandum and articles of association of the applicant company;

(b) a copy of the certificate of incorporation;

(d) a copy of the applicant company’s certificate of minimum share capital;

(e) a copy of the latest annual report and audited financial statements if the applicant company has been in operation for more than one year;

(f) a copy of projected financial statements, if the applicant company is recently incorporated;

(g) a copy of a detailed business plan;

(h) a certified copy of the passport or National Registration Card showing the nationality and the place and date of birth of the person named as Director as secretary in the application for incorporation.

6. Requirement of further information

The Board may require, from a person who has lodged an application for a permit or a licence under these Regulations, such further information as the Board may consider necessary.

7. Determination of application

(1) The Authority shall, within 30 days of receiving an application for a permit or licence, consider the application.

(2) Where the authority is satisfied that the applicant has complied with the requirements of these Regulations, the Authority shall approve the application and may refuse to approve the application where the Authority is not so satisfied.

(3) The Authority shall, immediately after the expiration of the period referred to in sub regulation (1) inform the applicant of its decision.

(4) Where the Authority refuses to grant a permit or licence, the Authority shall inform the applicant accordingly giving reasons for the refusal.

(5)The Authority shall, where an application is approved by the authority issue the applicant with–

(a) a permit in Form EPZ 3 set out in the Schedule to these Regulations; or

(b) a licence in Form EPZ 4 set out in the Schedule to these regulations.

8. Duration of permit or licence

(1) A permit or licence shall, unless it is revoked or suspended, be valid for a period of 10 years from the date of issue.

(2) An application for the renewal of a permit or a licence shall be made to the Authority six months prior to the expiration of a permit or licence issued under these Regulations.

(3) A non-refundable fee of seven thousand five hundred fee units shall be payable on the renewal of a permit or a licence.

(4) A permit or licence shall lapse if not renewed in accordance with the provisions of these Regulations.

(5) A permit or licence may be issued subject to such terms and conditions the Authority may determine.

(6) A permit or licence renewed under this Regulation shall be valid for a period not exceeding five years.

9. Annual fees

(1) An investor shall pay to the authority an annual licence fee of 36,112 fee units for each year during the licence is valid.

(2) A developer shall pay to the Authority an annual permit fee of 72,023 fee units for each year during which the permit remains valid.

10.

(1) A developer shall begin to implement the project described in the permit within one year of obtaining the permit.

(2) Subject to section 24 an investor shall begin to implement the investment described in the licence within one year of obtaining the licence.

SCHEDULE

[Regulations 4, 5 and 7]

ZAMBIA EXPORTING PROCESSING ZONES AUTHORITY

FORM EPZ 1

APPLICATION FOR AN EXPORT PROCESSING ZONE DEVELOPMENT’S PERMIT

PART 1

Developer’s background

1. Application’s name:……………………………………………………………………………………………

…………………………………………………………………………………………………………………………………..

2. Postal address:…………………………………………………………………………………………………..

………………………………………………………………………………………………………………………………….

3. Physical address:……………………………………………………………………………………………….

……………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………..

4. Telephone numbers:………………………………. Fax number…………………………………….

5. E mail address:…………………………………………………………………………………………………..

6. Registered office address:........................................................................

7. Date of registration:...............................................................................

8. Origin of investment funds:.....................................................................

9. Business of investing company:...............................................................

10. Business proposed for Export Processing Zone:......................................

.......................................................................................................

11. Proposed date of commencement of operations:......................................

..........................................................................................................

Particulars of Directors

Name

Passport/NRCNumber

Nationality

Telephone No.
Fax No.

E-mail Address

Residential Address

Details of Shareholders

Name

Nationality

per cent Share holding

PART 2

Details of the Proposed EPZ Project

Investment proposed in EPZ During the 1stthree years

Year One

Year Two

Year Three

ZMK

US$*

ZMK

US$*

ZMK

US$*

Equity contribution

(a) Local

(b) Foreign

SUB-TOTAL

Other sources of funds

Loan

Other (specify)

SUB-TOTAL

TOTAL INVESTMENT

{mprestriction ids="2,3,5"}

Please indicate the assumed exchange rate

Details of the proposed site

12. Location of proposed Export Processing zone ................................................

(a) District ...................................................

(b) City/Town ...............................................

(d) Other information on location (if any).................................................

Size (Hectares) of area proposed for export processing zone .................

13. Is the proposed Export Processing Zone land owned by the developers?

Yes .......................... No ............................

14. If not, describe current status of its ownership and developer’s intentions on acquisition:

.............................................................................................................

..............................................................................................................

15. Is the proposed Export Processing zone site part of a large development at this location?

Yes .......................... No ............................

16. If so, described size (hectares) and activities planned for the non-Export Processing Zone area ..........................................................................................................................................................................................................................................................................................................................................................

International Transport Access

17. Proximity to–

(a) Major Roads in Km (specify distance)

................................................................................................................

(b) Rail in Km (specify distance)

................................................................................................................

..........................................................................................................

(d) Sea port/Harbour (specify distance)

..........................................................................................................

18. Labour Availability: describe availability of labour in the proposed Export Processing Zone ........................................................................................................................................

Development Plan for the Export Processing Zone

19. An outline of the development plan for the export processing zone covering the key elements of the establishment, construction, promotion and operation of the zone should be submitted with this application. Indicate key elements as follows:

(a) Proposed date for commencement of site development and construction:

...............................................................................................

(b) Main land use components planned:

(i) Serviced site (m²)........................................

(ii) Production/Factory building (m²)....................

(iii) Warehousing (m²).......................................

(iv) Office building (m²).....................................

(v) Other (m²) specify)......................................

(i) Has permission for development been sought from the local authorities in accordance with the Town and Country Planning Act Cap. 283?

Yes ................................ No .......................

(ii) If so, attach evidence of the permission:......................................

..............................................................................................

(iii) Have the necessary statutory approvals been obtained or sought from the labour authorities with respect to suitability of premises for use by workers under the factories act?

..............................................................................................

(d) Environmental Impact Assessment

(i) Has and Environmental Impact Assessment been undertaken in accordance with the Environmental Protection and Pollution control Act?

Yes .......................... No .........................

(ii) If so, attach EIA report ............................

(iii) If not, the authority may require an EIA report certified by the Environmental Council of Zambia.

(e) Promotion by developer of Export Processing Zone

(i) Has promotion of the Zone been undertaken by the developer?

Yes ................................ No .........................

(ii) If so, summarise results to date:.........................................

.......................................................................................

(iii) what plans do you have for promotion of the zone?

.......................................................................................

(iv) Planned spending on promotion in Year 1 (ZMK)(US$)..............

(v) Countries targeted for promotion in Year 1 ..............................

...........................................................................................

.............................................................................................

(vi) Sector/Industries targeted for promotion in Year 1:.....................

............................................................................................

(f) Specific projects or industries which you wish to locate in the zone .......

....................................................................................................

Infrastructure

20. The EPZ activities will require support infrastructure such as water, effluent and waste disposal facilities, electricity, and telecommunication. In so far as you can anticipate or forecast, indicate likely demand on these services in the first 3 years.

Details on water requirements for the Project

(a) Water

YEAR 1

YEAR 2

YEAR 3

Estimated daily consumption of water

Effluent and water disposal

(b) Electricity

YEAR 1

YEAR 2

YEAR 3

Connected lighting load (KW)

Maximum demand (KVA)

Hours of operation

NUMBER

DATE REQUIRED

Telephone

Line

Extensions

Tele fax

Email services

(d) other services required (please specify)

(e) Any other information ...................................................................

PART 3

Declaration

I/We ..................................................................... hereby declare that the particulars given in this application are to the best of my/our knowledge and belief, correct and complete and that any estimates given in this application have been given in good faith and with all due care.

I am/We are aware that any Developer’s Permit can be suspended or revoked in accordance with section 28 of the Export Processing zones Act No. 7 of 2001 if any information given in this application is found, among other things, to be false or misleading or if the permit is found to have obtained on the basis of fraud or negligent misrepresentation.

Signed (by or on behalf of Applicant)...............................................................

Name ...........................................................................................................

Capacity in which signed ..................................................................................

Date ...............................................................................................................

COMPANY SEAL

Note: 1. The following documents should be submitted with the application for a permit.

(a) a certified copy of the articles of association.

(b) a certified copy of the certificate of incorporation

(d) A certificate copy of the certificate of minimum share capital.

(e) A copy of the latest annual report and audited financial statements for companies that have been in operation for more than one year.

(f) A copy of the projected financial statements in the case of a new company.

(g) A detailed Business plan.

(h) A certified photocopy of the Passport or National Registration Card showing the nationality, place and date of birth of the person named as Director or secretary in the application of incorporation of the company.

Note: 2. The documents listed in note 1 should be certified by a Commissioner for Oaths.

ZAMBIA EXPORT PROCESSING ZONES AUTHORITY

FORM EPZ 2

APPLICATION FOR AN EXPORT PROCESSING LICENCE

PART 1

Investors background

1. Full Name of applicant ..............................................................................................

2. Postal Address ...........................................................................................................

3. Physical Address .......................................................................................................

4. Telephone number ............................... Fax number ................................................

5. E-mail address ..........................................................................................................

6. Registered office address .........................................................................................

7. Date of registration ..................................................................................................

8. Origin of investment funds .....................................................................................

9. Business of investing company ..............................................................................

10. Business proposed for Export Processing Zone ....................................................

.....................................................................................................................................

12. Proposed date of commencement of operations ...................................................

13. Particulars of Directors

Name

Passport/NRC Number

Nationality

Telephone No.
Fax No.

E-MailAddress

Residential Address

14. Details of Shareholders

Name

Nationality

per cent Share holding

PART 2

Details of the proposed EPZ investment

15. Investment proposed in EPZ during the 1stthree years

Year One

Year Two

Year Three

ZMK

US$*

ZMK

US$*

ZMK

US$*

Equity contribution

(a) Local

(b) Foreign

SUB-TOTAL

Other sources of funds

Loan

Other (specify)

SUB-TOTAL

TOTAL INVESTMENT

*Please indicate the assumed exchange rate where applicable

16. Number of persons expected to be employed in each of the following categories

Year 1

Year 2

Year 3

Category

Zambia

Expatriate

Zambia

Expatriate

Zambia

Expatriate

Managerial Staff

Technical Staff

(i) Skilled

(ii) Semi-Skilled

Sales

Clerical

Other workers

TOTAL

17. Requirement of raw materials and components

Indicate the raw materials/components/services required in the manufacturing of proposed products for the first three (3) years

Year One

Year Two

Year Three

Raw material and/or components

Quantity

Units

Value ZMK

Value US$

Quantity

Units

Value ZMK

ValueUS$

Quantity

Units

ValueZMK

ValueUS$

Indicate whether locally available or imported

TOTAL

18. Projected output– (US dollars)

Proposed production/service for Export

ExportYear 1

Export markets

Quantity

Units

Value(US$)

per cent of Total

Total

Proposed production/service for Export

ExportYear 2

Export markets

Quantity

Units

Value(US$)

per cent of Total

Total

Proposed production/service for Export

ExportYear 3

Export markets

Quantity

Units

Value(US$)

per cent of Total

Total

20. Give a brief description of the production process to be undertaken (use additional paper if necessary):

................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

(a) Land (specify area) (Ha):..................................................................................................

..........................................................................................................................................

(b) Production/Factory Area (m²).........................................................................................

..........................................................................................................................................

(c) Warehouse Area (m²)......................................................................................................

.........................................................................................................................................

(d) Office Area (m²).............................................................................................................

.......................................................................................................................................

21. Plant and Equipment

Particulars of machinery, vehicles, office equipment, furniture and fixture

Details of assets

Origin

Cost in ZMK

Cost in US$

Total

22. Services

Details on water requirements for the Project

(i) Water

Year 1

Year 2

Year 3

Estimated daily consumption of water

(ii) Electricity

Year 1

Year 2

Year 3

Connected load (KW)

Maximum demand (KVA)

Hours of operation

(iii) Communications

NUMBER

DATE REQUIRED

TELEPHONE

LINES

EXTENSIONS

TELEFAX

E-MAIL

LINES

23. Environmental considerations

(a) Name of waste products if any .................................................................................

.........................................................................................................................................

(b) Method of Disposal ..................................................................................................

.........................................................................................................................................

(c) Has an Environmental Impact Assessment (EIA) been undertaken in accordance with the Environmental Protection and Pollution Control Act? Yes .............. No ..............................

If yes, supply copy

......................................................................................................................................

If not the authority may require such an EIA report certified by the Environmental Council of Zambia

....................................................................................................................................

PART 3

24. Relationship to existing operations of investors in Zambia

The Zambia Export Processing Zones Authority requires that activities qualifying for EPZ status should export at least 80% of their production.

(a) Do the investors have an existing operation in Zambia producing similar goods or services to those now proposed for the EPZ.

Yes ............................. No ............................

If YES, give a brief description of existing operations:

Location (s)...............................................................................................................

...................................................................................................................................

(b) Description of Goods/Service ............................................................................................................................................................................................................................................

(d) Current output ZMK (US$)......................................................................................

(e) Current exports as per cent of current output ....................................................................

...................................................................................................................................

(f) Will output, jobs and exports in the proposed Export Processing Zone be additional to existing activities ?

Yes .................................... No .................................

If Yes please elaborate:.............................................................................................

(g) Other services required (please specify)......................................................................

......................................................................................................................................

.......................................................................................................................................

(i) Any other information:...................................................................................................

PART 4

Declaration

I/We ................................................................................... hereby declare that the particulars given in this application are to the best of my/our knowledge and belief, true and correct and that any estimates given in this application have given in good faith and with all due care.

I am/We are aware that any Export Processing Licence can be suspended or revoked in accordance with section 28 of the Export Processing Zones Act No. 7 of 2001 if any information given in this application is found, among other things, to be false or misleading or if the licence is found to have been obtained on the basis of fraud or negligent misrepresentation.

................................................................................

Signature of the declarant

Full name (in block) letters .............................................................................................

Capacity in which signed ...............................................................................................

Date .......................................................................................................................................................................................................................................................................................

Company Seal

Note: 1. The following documents should be submitted with the application for a permit.

(a) a certified copy of the articles of association.

(b) a certified copy of the certificate of incorporation

(d) A certificate copy of the certificate of minimum share capital.

(e) A copy of the latest annual report and audited financial statements for companies that have been in operation for more than one year.

(f) A copy of the projected financial statements in the case of a new company.

(g) A detailed Business plan.

Note: 2. The documents listed in note 1 should be certified by a Commissioner for Oaths.

Permit No. ...........

ZAMBIA EXPORT PROCESSING ZONES AUTHORITY

FORM EPZ 3

Developer’s Permit

Name of Developer:..........................................................................................

Address:.........................................................................................................

Registered Office address ...............................................................................

Major Shareholder:.........................................................................................

Name ......................... Nationality:...…..... per cent Share holding .................................

Brief Project Description:...................................................................................

Nature and Value of Total Investment ................................................................

Nature and Value of Foreign Investment ............................................................

Special conditions ...........................................................................................

This permit is issued this ......................... day of ................ 20 .., and shall remain valid for a period of 10 years from the date of issue in accordance with Section 21 of the Export Processing Zones Act No. 7 of 2001 unless earlier suspended or revoked by the Authority.

Date of expiry:........................................................

..........................................................
Managing Director

Licence No ................

EXPORT PROCESSING ZONES AUTHORITY

FORM EPZ 4

Export Processing Licence

Name of Investor:............................................................................................

Address ..........................................................................................................

Registered Office ............................................................................................

Major Shareholder ...........................................................................................

Name ...................... Nationality ................. percentage Shareholding ................

Brief investment Description .............................................................................

Nature and Value of total investment ................................................................

Nature and Value of foreign investment ............................................................

Special conditions .........................................................................................

This licence is issued this ................ day of ............, 20 .., and shall remain valid for a period of 10 years from the date of issue in accordance with Section 21 of the Export Processing Zone Act No. 7 of 2001 unless earlier suspended or revoked by the Authority.

Date of expiry:........................................................

..........................................................
Managing Director{/mprestriction}

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