The Special Economic Zones Act, 2016

 

 

1. PART II-Special Economic Zone Authority
2.  

AN ACT to Repeal the Jamaica Export Free Zones Act and to make provisions in respect of the development, regulation, construction, supervision, management and control of Special Economic Zones
in Jamaica; and for connected matters.

BE IT ENACTED by The Queen's Most Excellent Majesty, by and with the advice and consent of the Senate and Ho use of
Representatives of Jamaica, and by the authority of the same, as follows:-

1. This Act maybe cited as the Special Economic Zones Act,2016, and shall come into operation on a day to be appointed by the Minister by notice published in the Gazette.

2. In this Act, unless the context otherwise requires-

"appointed day'' means the day appointed under section 1 for the corning into operation of this Act;

"assets" means any form of property, irrespective of its use or intended use; "

Authority" means the Special Economic Zone Authority established by section 5;

"authoriz.ation" means a licence, an authority or an approval, issued by the Authority under this Act, in accordance with section 39;

"benefits" means the tax reliefs and incentives for Special Economic Zones that are conferred on developers and occupants by Part V, including those specified in the First Schedule;

''Board" means the Board ofDirectors of the Authority, established by section 8;

"Chief Executive Officer" means the Chief Executive Officer of the Authority appointed under section 12;

"concession agreement" means the contractual arrangements under a concession agreement, licence-agreement or master-concession regarding any one or more of the following rights; that is, the right to develop, construct, exploit, manage, operate or maintain the infrastructure, buildings, equipment, facilities or amenities in a Zone;

"condition", in relation to an authoriz.ation, includes a limitation or restriction;

"customs duties" means the duties payable under the Customs Act;

"customstmitory"meansJamaicaincludingthearchipelagicwatas of Jammca as defined in section 5 of the Maritime Areas Act and the territorial waters thereof as defined in section 12 of thatAct, but excluding the Special Economic Zones;

" developer" means a company limited by shares that is incorporated under the Companies Act and is established by a sponsor for the purposes of entering into a masterconcession or a licence-agreement;

"document" means, in addition to a document in writing, anything in which information of any description is recorded;

"effective date", in relation to a master-concession or a licenceagreement, means the date on which all conditions precedent to its effectiveness set out therein have either been met to the satisfaction of the Authority or waived by the Authority, as the case may be.

"excluded activities" means the activities specified in section 41 (1 );

"existing Free Zone" means a Free Zone, designated as such by or pursuant to the repealed enactment, that is in existence and operating as such immediately before the appointed day;

"fixed lease payment" means the lease rent payable by the developer, under a site lease agreement pursuantto a masterconcession, to the Authority for the lease of the zone area;

''functions" includes powers and duties;

"Government company'' means a company registered under the Companies Act, being a company in which the Government or an agency of Government holds more than fifty per cent of the shares;

''infrastructure", in relation to a Zone, means the basic infrastructure which a developer is required to construct or cause to be constructed within the Zone under the master-concession or the licence-agreement, such as--

(a) site preparation;

(b) internal roads;

(c) common areas;

(d) common facilities, such as guard houses and Government offices

(e) fences; and 

(f) utilities, such as water, electricity, data communication and sewage;

"licence-agreement" means a concession agreement between the Authority and the developer of a Zone established or intended to be established on land that is not vested in the Authority as the registered proprietor or head lessee of the land;

''mastu-concession" means a concession agreement concluded between the Authority and the developer of a Zone established or intended to be established on land that is vested in the Authority as the registered proprietor or head lessee ofthe land;

"Minister" means the Minister responsible for industry;

"MSME" means an occupant that is a micro enterprise, small enterprise or medium enterprise as described in the Second Schedule;

"occupant" means a person, other than a developer of a Zone or zone user, who conducts business in the Zone under a subconcessionmade by that person with the developer, being a subconcession that is in accordance with a masterconcession or a licence-agreement held by the developer;

"operating certificate" means the document issued by the Authority to a developer under section 23 evidencing that the Authority has entered into a master-concession or a licence-agreement with the developer;

''register'' means the register kept and maintained under section 40;

"repealed enactment" means the Jamaica Export Free Zones Act;

"revenue laws" means the several revenue imposing enactments
referred to in the First Schedule;

"security interest" includes--

(a)  security interest as defined in section 2 of the Security Interests in Personal Property Act;

and

(b) any mortgage or charge of an estate otinterest in real property;

"site lease agreement" means the agreement executed between the Authority and a developer under a master-concession, granting a leasehold interest to the developer of the zone
area;
"Special Economic Zone" or "Zone" means an area designated under section 18;
 "Special Economic Zone Fund" or "Fund" means the fund established by paragraph 8 of Part I of the Third Schedule;

"sponsor" means an investor who, or a consortium of investors that, proposes to provide shareholder capital to finance, directly or indirectly, the business that a developer will undertake pursuant to a master-concession or a licence agreement;

"subconcession" means a concession agreement entered into between a developer and an occupant;
"zone area" means the geographical area of a Zone, as designated in the master-concession or licence-agreement between the Authority and a developer;
''zone user'' means a person, not being a developer or an occupant, who performs activities or services in a Zone on the basis of an authorization from the Authority.

3. This Act applies to Special Economic Zones established in Jamaica.

4. This Act shall be regarded as an enactment relating to the customs for the purposes of the Customs Act.

PART II-Special Economic Zone Authority

5.--      (1) For the purposes of this Act, there is established a body to be known as the Special Economic Zone Authority which shall be a body corporate to which section 28 of the Interpretation Act applies.

(2) The provisions of Part I of the Third Schedule shall have effect as to the constitution, administration and financing ofth eAuthority, and otherwise in relation thereto.

(3) Subject to subsection ( 4), the Authority may raise capital by the issuing of shares on such tenns and conditions as the Minister may prescribe by order published in the Gazette

(4) The Government, or an agency of the Government, shall at all times hold no less than 50.1 % of any shares issued wider subsection (3).

6. The functions of the Authority are to­

( a) regulate and supervise Zones;

(b) acquire real property, whether freehold or leasehold, and to act as a landlord in respect of real property that is vested in the Authority as registered proprietor or head lessee;

( c) advise the Minister on matters of general policy relating to Zones;

( d) recommend to the Minister the location of Zones;

( e) issue guidelines and directions to developers, occupants and zone users for the implementation of this Act;

(f) manage the Fund;

(g) consider and determine applications by prospective developers on the basis of the relevant eligibility criteria specified in the Fourth Schedule;

(h) negotiate and enter into master-concessions and licence agreements in accordance with this Act on the basis of the relevant eligibility criteria specified in the Fourth Schedule and any approval criteria that the Minister may prescribe by order published in the Gazette;

(i) approve subconcessions in accordance with this Act, on the basis of the relevant eligibility criteria specified in the Fourth Schedule and any approval criteria that the Minister mayprescribe by order published in the Gazette;

(j) manage and operate a business acceleration centre for the coordination ofits activities with those of Government entities, in order to enhance the efficiency and competitiveness of Zones;

(k) receive and talce prompt action to resolve complaints from developers, occupants and zone users in a Zone, and exporters of goods and services located in the customs territory to a Zone;

(l) facilitate the mediation and settlement of disputes among persons referred to in paragraph (k);

(m)make recommendations to the Minister as to the making of regulations under this Act;

(n)promote and market Zones;

(o)raise capital to support the exucution ofits functions on a commercial basis to the extent practicable, and to reduce its dependence on public resources;

(p) establish subsidiaries for the more effective implementation of its functions; and

(q) perform such other fimctions relating to the administration and operation of Zones as may be assigned to it by or under this Act or any other enactment.

 

7. —(1) The Authority shall, in the performance of its functions, operate on business principles that maximize its effectiveness and efficiency, and have regard to the desirability that its operation—

   1. enhance the Jamaican economy by increasing levels of investment and creating job opportunities;

   2. promote measures, actions and investments aimed at improving the logistics chain of which the Zones are a part;

   3. foster the development and expansion of the Zones in collaboration with the Government, international organizations and the private sector;

   4. ensure that the environment is protected in the course of the development and operation of Zones;

   5. enable persons conducting business in the Zones to compete effectively in the conduct of their business;

   6. promote research and development in the fields of Zone activities, and related services, facilities and amenities; and

   7. collaborate with universities and other educational institutions for the promotion of technical and operational education and training in the fields of Zone development, promotion, operation and management.

 

              (2) The Authority shall not permit any existing business operating in the customs territory to be transferred or reestablished in a Zone as a developer or an occupant, during the Zone -establishment period.

              (3) In subsection (2), “Zone-establishment (period” means the period often years from the appointed day or such other period as the Minister may prescribe by order subject to affirmative resolution.

              (4) In exercising his functions under subsection (3), the Minister shall take into account the level of development of zones in Jamaica and the need to protect Jamaica’s tax base from erosion.

 

8. —  (1) There is established, for the purposes of thisAct, a Board of the Authority.