WORLD TRADE
ORGANIZATIONG/SCM/Q3/JAM/8
21 June 2002
(02-3449)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Requests Pursuant to Article 27.4 of the Agreement
on Subsidies and Countervailing Measures
Replies to Follow-Up Questions Posed by the UNITED STATES1
Regarding the Notification of JAMAICA2
The following communication, dated 17 June 2002, has been received from the Permanent
Mission of Jamaica.
_______________
Export Industry Encouragement Act
Jamaica Export Free Zone Act
Foreign Sales Corporation Act
Industrial Incentives (Factory Construction) Act
Q1. Could Jamaica please provide the implementing legislation for each of these
programmes?
Reply
The texts of the above-mentioned Acts are attached as follows:
Page
Export Industry Encouragement Act................................................................................... 3
Jamaica Export Free Zone Act........................................................................................... 12
Foreign Sales Corporation Act ........................................................................................... 37Industrial Incentives (Factory Construction) Act............................................................. 44
Jamaica Export Free Zone Act
Q2. Could Jamaica please provide additional st atistical data on this programme, including
the value of exports, by industry sector, of all companies located in the free zones?
                                                     
1 G/SCM/Q3/JAM/7
2 G/SCM/N/74/JAM;  G/SCM/N/71/JAMG/SCM/Q3/JAM/8
Page 2
Reply
Exports by Industrial Sector
January-December 1998, 1999 and 2000
     Value US$M
Sector 1998 1999 2000
Manufacturing
Garment ManufacturingConfectioneryAnimal FeedEthanol ProcessingFood Processing
Electronics
Other100.26
1.201.103.60
-
9.60
-90.15
-
2.202.370.60
1.80
-100.62
-
2.375.800.96
2.69
2.90
TOTALS 115.76 97.12 115.34
Industrial Incentives (Factory Construction) ActQ3. Please explain whether companies benefiting from this programme must make available
some or all of the factory space to companie s that have status under the Export Industry
Encouragement Act.
Reply
To benefit from incentives under this statute, approved builders are required to construct
factories for companies – ‘recognized enterprises’ that have status under the Export IndustryEncouragement Act.G/SCM/Q3/JAM/8
Page 3
EXPORT INDUSTRY ENCOURAGEMENT ACT
Regulations | Cases
ARRANGEMENT OF SECTIONS
Laws 49 of 1956 | 13 of 1960 | 11 of 1968 | 42 of 1969 3rd Sch. | 56 of 1974 Ss. 2, 4, 5. | 12 of 1985 Sch. | 18 of 1986 | 16 o f
1991 S. 64.
1. Short title
PART I.  General
2. Interpretation
3. Power of Minister to declare approved export product
4. Declaration of approved export manufacturers
5. Applications for approval
6. Objections to proposals to approve a product
7. Limitation on powers of Minister to approve manufacturer8. Minister to have absolute discretion to refuse approval
PART II.  Concessions
9. Concessions
10. [Repealed by Act 18 of 1986.]
11. Application of concessions under Part VI of the Industrial Incentives Act12. Production to be in bond: duty free importation of raw materials
13. Additional relief from customs duty on plant, etc.
PART III.  Miscellaneous
14. Control of manufacturer by Commissioner
15. Restriction of sale of product in Jamaica
16. Penalties
17. Order under section 4 may be revoked
18. Regulations19. Restriction of application of section 12, 13, 14, 15 or 16
20. Saving
First Schedule
1. Short title
1. This Act may be cited as the Export Industry Encouragement Act.
2. Interpretation
2. In this Act unless the context otherwise requires –
"the Agreement" shall have the meaning assigned thereto by section 2 of the Industrial Incentives Act;"approved export product" when not preceded by the word "relevant" means a product of manufacture
approved by the Minister under section 3 manufactured by an approved export manufacturer;G/SCM/Q3/JAM/8
Page 4
"approved export manufacturer" means a company approved by the Minister under section 4 for the
manufacture of an approved export product;
"benefit" means the relief in regard to income ta x or customs duties enjoyed by an approved export
manufacturer in virtue of this Act;
"Commissioner" means the Commissioner of Customs and Excise;"company" means any company incorporated or regist ered under any enactment in force in the Island
or any company which, though incorporated or registered outside the Island, carries on business or has
an office or place of business therein;
"customs laws" shall have the same meaning as in the Customs Act;
"date of production" means the date declared pursuant to subsection (2) of section 4;"factory" means the site and the buildings and other structures thereon specified as constituting a
factory in an order made under section 4;
"Minister" means the Minister responsible for industrial development;"relevant approved export product" used in relation to any approved export manufacturer means the
approved export product in relation to which a manufacturer has been declared under section 4 to be
an approved export manufacturer.
3. Power of Minister to declare approved export product
3.(1) Subject to the provisions of section 6, the Minister may, by order, declare that a product of
manufacture shall be an approved export product for the purposes of this Act as regards such
approved export manufacturers of that product as may be declared by order pursuant to subsection (1)
of section 4.
(1A) The Minister may, by order, declare that a product of manufacture shall be an approved
export product for the purposes of this Act as regards such approved export manufacturers of thatproduct as may be declared by order pursuant to subsection (1A) of section 4.
(2) An order may be made under this section in respect of a product which is being manufactured
in the Island at the date of the order.
(3) Subject to subsection (4), the Minister, before making an order under this section in relation
to a product of manufacture, shall also have regard to the following considerations -
(a) the effect which approval would have on existing industries; and
(b) the amount of risk involved in establishing a successful manufacture and export of the
product.
(4) The Minister may, by notice published in the Gazette , prescribe provisions which shall, in
relation to the making of orders under subsection (1A), have effect in lieu of the provisions ofparagraphs (a) and (b) of subsection (3), but nothing in the foregoing provisions of this subsection
shall be construed to prevent any of the provisions so prescribed from being the same as all or any of
the provisions of those paragraphs.G/SCM/Q3/JAM/8
Page 5
4. Declaration of approved export manufacturers
4.(1) Subject to the provisions of section 7, the Minister may, by order, declare that a company
which is manufacturing, or proposes to manufacture, an approved export product declared under
subsection (1) of section 3 is an approved export manufacturer for the purposes of this Act if he issatisfied that the company -
(a) proposes to manufacture the approved export product exclusively for export from this
Island to 3 countries other than those belonging to the Caribbean Common Market;
(b) is adequately financed;
(c) has adequate trained personnel in its employ or is able to obtain the services of such
personnel;
(d) has access to the necessary technical information;
(e) is able to obtain adequate raw materials;
(f) possesses, or will possess, the necessary factory.
(1A) Subject to the provisions of section 7, the Minister may, by order, declare that a company
which is manufacturing or proposes to manufacture an approved export product declared under
subsection (1A) of section 3 is an approved export manufacturer for the purposes of this Act if, in
regard to that company, he is satisfied as to the matters for the time being prescribed under subsection
(1B) with reference to such a company, but nothing  so prescribed shall require the Minister to be
satisfied that the company proposes to manufacture the approved export product exclusively forexport.
(1B) The Minister may, by notice published in the Gazette , prescribe matters as to which the
Minister shall, in conformity with subsection (1A), be satisfied before he makes an order thereunder,
and different matters may be so prescribed with reference to companies manufacturing, or proposing
to manufacture, different approved export products.
(1C) Every order which declares that a comp any is an approved export manufacturer under
subsection (1) or (1A) shall specify the order whereby the relevant approved export product has been
declared as mentioned in that subsection.
(2) In every order made under this section a date shall be declared to be the date on which
production is deemed to begin for the purposes of this Act.
(3) Every order made under subsection (1) shall specify the site and the buildings and other
structures thereon constituting the factory in respect of which the benefits of this Act may be enjoyed.
(4) If, on the application of an approved export manufacturer, the Minister is satisfied that it is
necessary, for the purpose of promoting the manufacture of the approved export product by the
approved export manufacturer, that the site of the factory should be changed or that the buildings or
other structures specified in any order made under subsection (1) should be altered, added to,
extended or otherwise changed, the Minister may, in his absolute discretion and upon such conditions
as he may think fit, by order amend any order made under subsection (1) in respect of the factory
specified therein.G/SCM/Q3/JAM/8
Page 6
(5) On the application of an approved export manufacturer the Minister may, in his discretion and
upon such conditions as he thinks fit, amend an order made under this section in respect of the date of
production specified therein; and thereupon the provisions of this Act shall, subject to any conditions
specified in relation to such amendment, have effect as if for the date of production declared pursuant
to subsection (2) there were substituted the date of production amended as aforesaid.
(6) Without prejudice to the generality of subsection (5), the amendment of an order pursuant to
that subsection may be made on terms which permit an option exercised in accordance with section 10
of the Industrial Incentives Act to be changed at any time before the date of production as amended,
or on terms which require that no such change in the exercise of an option shall be made.
5. Applications for approval
5. All applications for the approval of a product as an approved export product or the approval
of a company as an approved export manufacturer shall be addressed to the Minister in such form and
with such particulars as may be prescribed.
6. Objections to proposals to approve a product
6.(1) Before any order is made under subsection (1) of section 3, the Minister shall cause the fact
that he is about to consider whether a product for manufacture should be an approved export product
for the purposes of this Act, to be advertised in  the Island and, if the Minister so deem it necessary,
elsewhere.
(2) The advertisement referred to in subsection (1 ) shall contain such particulars as to the product
of which such approval is being sought as the Minister may think necessary.
(3) The advertisement shall state the period within  which any objection to the approval of the
product shall be made.
(4) Every objection received by the Minister within  the time stated in the advertisement or within
such extended time as the Minister may allow shall be  considered by the Minister before any order is
made under subsection (1) of section 3.
7. Limitation on powers of Minister to approve manufacturer
7. The Minister shall not approve a company as an approved export manufacturer if such
company is an enterprise approved, recognized or licensed for the purpose of any of the enactments
specified in the Schedule.
8. Minister to have absolute discretion to refuse approval
8.(1) Subject to the provisions of this section and section 7 the Minister shall have an absolute
discretion to grant or refuse to grant approval in respect of a product for manufacture as an approvedexport product or a company as an approved export manufacturer for the purposes of this Act.
(2) If a company which is applying for approval as an approved export manufacturer is, at the
time of such application, manufacturing the approved export product in Jamaica, the Minister may, as
a condition of his granting the application, require the applicant to incorporate a company in Jamaica,upon such terms and conditions as he may determine, and grant approval in respect of that company
when so incorporated.G/SCM/Q3/JAM/8
Page 7
(3) Upon any application for an order to be made under section 4, the Minister shall, in the
exercise of his discretion in that behalf -
(a) take account of the Agreement; and
(b) consider whether in his opinion, the periods of relief to be granted should be less than
the periods of relief prescribed under section 11 and section 13 having regard to the
nature of the project envisaged in the application and the economic or other
circumstances existing at the time thereof, and if he makes that order may include
therein such terms as, having regard to paragraph (a) or (b), he may consider
necessary or expedient for all or any of the following, that is to say -
(i) restricting, abridging, withholding or stipulating conditions for, any relief that
may (apart from this section or otherwise) be granted by virtue of the order;
(ii) extending any relief, in respect of customs duties, to any specified class of
imports required for use in the manufacture of the approved export product inconnection with which the order is made;
(iii) subject to subsection (4), authorizing relief to be afforded indefinitely or for
any specified period (whether or not in excess of any period contemplated for
concessions under section 11) with regard to income tax on export profits;
(iv) determining export profits for the purposes of any relief authorized under
paragraph (iii);
(v) providing for any matters appearing to the Minister to be incidental, ancillary
or supplementary to, or consequential upon, any such relief as may be
afforded pursuant to the order.
(4) No relief shall by the terms of any order made under subsection (1) of section 4 be authorized
under paragraph (iii) of subsection (3) for an approved export manufacturer during any period for
which that manufacturer is afforded under this Act -
(a) any relief as to customs duty; or
(b) any relief from income tax in respect of profits or gains (exclusive of any amount
allowable by way of deduction on computing the chargeable income of the said
manufacturer), other than sums determinable in accordance with provision made inrelation to such manufacturer under paragraph (iv) of subsection (3).
(4A) All relief, other than such relief as may be authorized under and pursuant to paragraphs (iii)
and (iv) of subsection (3), shall be withheld under paragraph (i) thereof by the terms of any order
made under subsection (1A) of section 4, but without prejudice to the inclusion in any such order of
terms pursuant to paragraph (i) or (v) of subsection (3) with reference to the relief so authorized.
(5) Any terms included pursuant to this section in any order shall have effect notwithstanding
anything to the contrary provided by or under the Customs Act, the Income Tax Act, or the Industrial
Incentives Act, exclusive of subsection (2) of section 29 thereof (but without prejudice to the powerexercisable under paragraph (i) of subsection (3) of this section, to restrict or withhold relief or to
abridge any period of relief, or by or under any other provisions of this Act.G/SCM/Q3/JAM/8
Page 8
9. Concessions
9. Subject to the provisions of this Act, an approved export manufacturer shall be entitled to the
concessions specified in section 11.
10. [Repealed by Act 18 of 1986]
10. [ Repealed by Act 18 of 1986. ]
11. Application of concessions under Part VI of the Industrial Incentives Act
11.(1) The concessions obtainable under this section shall, subject to the provisions of this Act, be
those reliefs from customs duties and income tax obtainable under the Industrial Incentives Act; and
the provisions of that Act shall apply mutatis  mutandis  and with such modifications as may be
prescribed to an approved export manufacturer to which this section applies as if such approved
export manufacturer were an approved enterprise to which Part VI of the Industrial Incentives Act
applied, the relevant approved export product were  a new product within the meaning of Part VI of
that Act and the factory were the factory premises within the meaning of that Act.
(2) The date of production for the purposes of this Act shall be deemed to be the date of
production for the purposes of the Industrial Incentives Act.
(3) Notwithstanding anything contained in the Industrial Incentives Act, all approved export
manufacturers to which this section applies shall be entitled to one hundred per centum  of the benefits
of the Industrial Incentives Act.
(4) The provisions of this section shall have effect subject to anything to the contrary provided by
virtue of this Act.
12. Production to be in bond: duty free importation of raw materials
12.(1) Every factory in which an approved export product is manufactured shall be under the
supervision of the Commissioner and no such factory shall be used for the manufacture of the
approved export product until a bond, in such sum as may from time to time in each case be requiredby the Commissioner, is given by the approved export manufacturer with one or more sufficient
sureties, conditioned on due payment of all duties and the due observance of the provisions of this Act
and the customs laws.
(2) Every such factory, or such part or parts thereof may be specified by the Commissioner, shall
be deemed to be a private warehouse within the meaning of the customs laws and, save as modified
by this Act or the regulations made hereunder, the provisions of the customs laws shall apply
accordingly.
(3) The goods specified in subsection (4) may be deposited in such factory or such part or parts
thereof as may be specified by the Commissioner upon first importation without payment thereon of
customs or excise duty or general consumption tax.
(4) Subsection (3) shall apply to the follow ing goods imported by an approved export
manufacturer for use in the manufacture or preparation for export or sale of the relevant approvedexport product, that is to say -
(a) all types of containers including labels;G/SCM/Q3/JAM/8
Page 9
(b) fuel;
(c) raw materials, chemicals, other ingredients and supplies whether in a manufactured or
semi-manufactured state and whether intended to form part of the finished product or
not.
13. Additional relief from customs duty on plant, etc.
13.(1) Notwithstanding anything contained in the Industrial Incentives Act, articles may, during the
relevant statutory period, be imported free of cust oms duty if the Commissioner is of opinion that
such articles are intended for the purpose of effect ing repairs to a factory within the meaning of this
Act or any extension thereof or to any apparatus, machinery, tools, appliance or equipment contained
in the factory or any extension thereof or for repl acing any apparatus, machinery, tools, appliance or
equipment in the factory or any extension thereof.
(2) For the purposes of this section the relevant statutory period in relation to the factory of any
approved export manufacturer to which section 11 applies shall be the period commencing on the dateon which any company is declared under section 4 to be an approved export manufacturer in respect
of such factory and terminating ten years thereafter.
14. Control of manufacturer by Commissioner
14. In addition to complying with the requirements of section 16 of the Industrial Incentives Act,
an approved export manufacturer, shall -
(a) upon being required by the Commissioner to do so, furnish to the Commissioner such
information as he may require;
(b) import, store or otherwise deal with raw materials and any other materials or
commodities imported without payment of customs duty under such conditions as the
Commissioner may impose;
(c) store, export or otherwise deal with the approved export product under such
conditions as the Commissioner may impose.
15. Restriction of sale of product in Jamaica
15. No approved export manufacturer shall sell, give away or otherwise dispose of any approved
export product for use in Jamaica or in any country belonging to the Caribbean Common Market:
Provided that nothing in this section shall -(a) prevent the sale, gift or other disposition of an approved export product by one
approved export manufacturer to another approved export manufacturer, to be usedin, wrought into, or attached to, an approved export product;
(b) prevent any approved export manufacturer approved as such prior to the
30 December 1974, from selling, giving away or otherwise disposing of an approved
export product for use in any country belonging to the Caribbean Common Market,other than Jamaica.G/SCM/Q3/JAM/8
Page 10
16. Penalties
16.(1) Every approved export manufacturer who fa ils to comply with any requirement of the
Commissioner made under section 14 and every direct or, manager, agent, officer and servant of the
company who is knowingly a party to such failur e shall be guilty of an offence and, on summary
conviction thereof before a Resident Magistrate, shall be liable to a fine not exceeding one thousand
dollars and, in default of payment thereof, every su ch director, manager, agent, officer, or servant
shall be liable to be imprisoned for a term not exceeding twelve months.
(2) Every person who shall be knowingly concerned in contravening the provisions of section 15
shall be guilty of an offence and on summary conviction thereof before a Resident Magistrate shall
incur a penalty of one thousand dollars, or treble the value of the approved export product sold for usein Jamaica, at the election of the Commissioner and in default of payment shall be liable to be
imprisoned for any term not exceeding twelve months.
17. Order under section 4 may be revoked
17. On the application of an approved export manufacturer or in such other circumstances as may
be prescribed the Minister may revoke the order made under section 4 by which a company became
an approved export manufacturer. Upon such revocation nothing in this Act shall prevent the
company from being granted any special treatment which may be granted pursuant to any of the
enactments specified in the Schedule:
Provided that, notwithstanding anything containe d in any of the enactments specified in the
Schedule, any special treatment granted under any of those enactments to a company which has
previously enjoyed concessions under this Act shall be subject to such terms and conditions as regards
adjustment of benefits received under this Act or otherwise as the Minister may think fit.
18. Regulations
18.(1) The Minister may make regulations in regard to -
(a) any matters required by this Act to be prescribed:
(b) the particulars to be furnished by an approved export manufacturer to which
section 11 applies;
(c) the terms and conditions under which an approved export manufacturer may utilize
the services of outworkers, that is to say, persons to whom articles or materials aregiven out to be made up, cleaned, washed, altered, ornamented, finished or repaired
or adapted for sale in their own homes or on other premises not under the control or
management of the person who gave out the articles or materials;
(d) the terms and conditions under which an approved export manufacturer may sell or
otherwise dispose of genuine wastes arising from the manufacture of the approved
export product;
(e) the imposition of conditions and restrictions on a company which ceases to be an
approved export manufacturer when an order made under section 4 is revoked underthe provisions of section 17;G/SCM/Q3/JAM/8
Page 11
(f) any matter or thing connected with the construction, supervision or control of a
factory used or intended to be used for the manufacture of an approved export
product;
(g) any other matter or thing, whether similar to the above or not, in respect of which it
may be expedient to make regulations for the purpose of carrying this Act into effect.
(2) Any regulation made under subsection (1) may prov ide in respect of the breach of any of the
provisions thereof that the offender shall be liable to a fine not exceeding one thousand dollars, or to
such term of imprisonment with hard labour not exceeding twelve months, or to both such fine and
imprisonment, as may be therein prescribed.
19. Restriction of application of section 12, 13, 14, 15 or 16
19. Nothing in section 12, 13, 14, 15 or 16 shall have effect as regards an approved export
manufacturer declared under subsection (1A) of section 4.
20. Saving
20. Any order lawfully made or anything lawfully done by virtue of this Act prior to the 1st day
of July 1976, and which, but for the *amendments made to this Act with effect from the said day
under section 6 of the Industrial Incentives (Regional Harmonization) Act, 1974, would continue tohave effect after the 30th day of June 1976, shall so continue to have effect and shall be treated as
having been made or done under this Act as so amended.
FIRST SCHEDULE
The Hotels Incentives Act.
The Motion Picture Industry (Encouragement) Act.The Industrial Incentives Act.G/SCM/Q3/JAM/8
Page 12
JAMAICA EXPORT FREE ZONE ACT
Regulation | Objects & Reasons
ARRANGEMENT OF SECTIONS
Acts 18 of 1982 | 12 of 1985 Sch. | 16 of 1991 S. 64 | 24 of 1996
Preliminary1. Short title
2. Interpretation
Administration2A. Establishment of Jamaica Free Zone Council
2B. Functions and powers of the Council
2C. Ministerial directions
3. Establishment of the Free Zones
4. Management and superintendence of Free Zones
5. Power to prescribe Free Zone activities
Responsibilities and functions of Authority6. Functions of the Authority
7. Ministerial directions8. Transfer of property
9. Funds and resources related to Free Zones
10. Borrowing powers
11. Power of Minister to guarantee loans to the Authority
12. Repayment of, and interest on, advances and sums issued to meet guarantee
13. Power to invest funds
14. Accounts and audit15. Annual reports
16. Staff
17. Power to delegate
18. Protection of members
Regulations
19. Regulations.Operations within the Free Zone20. Approval of enterprise to undertake approved activity
21. Companies to be incorporated or registered locally
22. Insurance business
23. Dealing with, or disposal of, goods in Free Zones24. Persons not to enter Free Zones without permission
25. Retail trade
26. Prohibition on consumption or use of dutiable goods in Free Zones
27. Special provisions relating to articles imported with customs duty concessions
28. Restriction upon disposal of articles imported with customs duty concessions29. Manufacture or manipulation in Free ZoneG/SCM/Q3/JAM/8
Page 13
30. Allowances for Jamaican labour or materials
31. Disposal of goods abandoned in Free Zone
32. Goods not to be taken into or stored in Free Zone
Licences33. Import and export licensingBanking and foreign currency activities34. Banking activities
35. [ Repealed by Act 24 of 1996 ]
36. [ Repealed by Act 24 of 1996 ]
37. [ Repealed by Act 24 of 1996 ]
38. Income tax relief in relation to manufacturing activities
39. Income tax relief in relation to international trading activities
40. Service charges and dividends subject to withholding tax41. Approved enterprises to submit returns
42. Commissioner of Income Tax may issue certificates regarding benefits
43. Work permits
44. Penalty for offences not otherwise provided for
45. Offences by bodies of persons and by servants and agents46. Penalties
First Schedule - Prescribed activities which may be carried on in Free Zones (Section 5(2))
Second Schedule - Area of Kingston Export Free Zone (Section 3)
Third Schedule - Articles which, subject to section 23, may be imported free of customsFourth Schedule - Goods which, subject to section 26, shall not be used in a Free Zone (Section 26)
Fifth Schedule
1. Short title
1. This Act may be cited as the Jamaica Export Free Zones Act.
2. Interpretation
2.(1) In this Act, unless the context otherwise requires -
"approved enterprise" means any enterprise approved -
(a) by a promoter; or(b) if the enterprise is a Promoter, by the Council, to carry on an approved activity.
"approved activity" means any activity which may be carried on in any Free Zone in accordance with
the First Schedule;
"the Authority" means the Port Authority established under the Port Authority Act;
"the Chairman" means the Chairman of the Council or any person for the time being performing the
functions of the Chairman;
"Council" means the Jamaica Free Zone Council constituted under section 2A;G/SCM/Q3/JAM/8
Page 14
"customs territory" means Jamaica and the territorial waters thereof but excluding any Free Zone;
"Free Zone" means an Export Free Zone area designated as such by or pursuant to this Act;
"Free Zone Promoter" or "Promoter" means -
(a) any person who is licensed by the Council to promote, develop or operate any area of
land or a building or part of a building as a Free Zone pursuant to this Act; and
(b) the Port Authority;
"functions" includes duties and powers;
"manufacture" with its grammatical variations and cognate expressions, means the application of any
operation or process of converting materials into a new product or article, excluding any operation or
process which consists only of one or more of the following -
(a) packing, wherever the packing materials may have been manufactured or produced;(b) dividing into lots;
(c) sorting or grading;
(d) marking; or(e) packing into sets.
"member" means a member of the Council;"Port Authority Free Zone" means -
(a) the Kingston Export Free Zone,
(b) the Montego Bay Export Free Zone;
(c) any other area declared a Free Zone and vested in the Authority in its capacity as a
Free Zone Promoter under this Act;
(2) This Act shall be regarded as an enactment relating to the Customs for the purposes of the
Customs Act
Administration
2A. Establishment of Jamaica Free Zone Council
2A.(1) There is hereby established for the purposes of this Act a body to be called the Jamaica Free
Zone Council which shall be a body corporate to which the provisions of section 28 of the
Interpretation Act shall apply.
(2) The provisions of the Fifth Schedule shall have effect as to the constitution of the Council and
otherwise in relation thereto.G/SCM/Q3/JAM/8
Page 15
2B. Functions and powers of the Council.
2B.(1) The Council shall have the following functions -
(a) to make, either on its own initiative or on the application of any person,
recommendations to the Minister in relation to the declaration or operation, of any
area as a Free Zone;
(b) to receive and approve or reject -
(i) applications from any person for a licence to promote, develop or operate an
area of land, a building or part of a building, as a Free Zone; and
(ii) applications from a Promoter to operate as an approved enterprise pursuant to
section 4 (3);
(c) to facilitate, monitor and supervise the activities of Free Zone Promoters and
approved enterprises;
(d) to formulate and, from time to time, revi ew and evaluate policies, procedures and
guidelines for the development, manage ment, promotion and expansion of Free
Zones;
(e) to promote harmonious relations between -
(i) Free Zone Promoters and approved enterprises; and
(ii) approved enterprises and the Customs Department and any other entity
whose activities are closely related to the operations of Free Zones.
(2) The Council shall have power -
(a) to impose and collect fees and other charges in respect of its activities;
(b) to require Promoters to furnish reports to the Council at such times and including
such particulars as may be prescribed;
(c) to do all such things as may appear to it to be necessary for the carrying out of its
functions under this Act;
(d) to institute measures to enforce the provisions of this Act.
2C. Ministerial directions
2C.(1) The Minister may, after consultation with the Chairman of the Council give to the Council
directions of a general character as to the policy to be followed by the Council in the exercise and
performance of its functions.
(2) The Council shall furnish the Minister with su ch returns, accounts and other information, as
he may require with respect to the property and activities of the Council, and shall afford him
facilities for verifying such information in such manner and at such times as he may reasonably
require.G/SCM/Q3/JAM/8
Page 16
3. Establishment of Free Zones
3.(1) The Minister may from time to time on the recommendation of the Council, by order,
designate such areas as he thinks fit to be Export Free Zones.
(2) Every order made pursuant to subsection (1) shall specify the limits of the area designated a
Free Zone, and ascribe a name to that Free Zones.
(3) On the recommendation of the Council, the Minister may from time to time, by order, amend,
vary or add to the limits of a Free Zone or change  the name of a Free Zone, so, however, that at any
time when such an order is made it shall not prejudice approved enterprises existing at that time.
(4) The area specified in the Second Schedule shall, until other provision is made pursuant to
subsection (3), be a Free Zone and shall be known as the Kingston Export Free Zone.
Responsibilities and functions of Promoters
4. Management and superintendence of Free Zones
4.(1) Each Free Zone Promoter shall -
(a) manage, control and superintend each Free Zone in respect of which he is a Free
Zone Promoter;
(b) subject to any restrictions which may be imposed by the Commissioner of Customs
under the Customs Act, have authority over all goods deposited or manufactured
there; and
(c) supervise, control and stipulate conditions for the movement of persons, conveyances,
vessels and goods into, in, and out of, any such Free Zone.
(2) A Promoter may -
(a) notwithstanding anything contained in the Rent Restriction Act, freely stipulate the
prices for leasing or selling space to be occupied by approved enterprises established
in the Free Zone under his control;
(b) set the prices for services offered by him such as garbage removal, customs
processing, security and any other services related to the Free Zones under hiscontrol.
(3) Where a Promoter proposes, himself, to carry on an approved activity in a Free Zone he shall
apply to the Council for approval as an approved enterprise and such approval may be granted on such
terms as the Council thinks fit.
5. Power to prescribe Free Zone activities
5.(1) Subject to subsection (2), the activities specified in the First Schedule shall be approved
activities for the purposes of this Act.
(2) The Minister, on the recommendation of the Council, may from time to time, prescribe the
activities which may be carried on in a Free Zone and for this purpose may, by order, amend the First
Schedule.G/SCM/Q3/JAM/8
Page 17
Responsibilities and functions of Authority
6. Functions of the Authority
6.(1) In this section reference to a Free Zone is a reference to a Port Authority Free Zone.
(2) The Authority, in addition to any function or obligation imposed on it under any other
enactment for the time being in force, shall -
(a) administer, control, operate and manage all Free Zones and any other property which
may from time to time be vested in it under this Act;
(b) provide and maintain such services, facilities and structures as are in its opinion
necessary or desirable for the efficient operation of any Free Zone;
(c) permit customs offices to be established in any Free Zone and shall provide facilities
for this purpose;
(d) provide adequate fencing and enclosures to segregate a Free Zone from the customs
territory;
(e) approve and regulate activities which may be carried on in a Free Zone.
(3) In the exercise of its functions under this Act, the Authority may -
(a) construct and maintain warehouses, factories, commercial buildings, offices,
freight-sheds, docking facilities, loading and unloading berths, landings for loading
and unloading operations, storage facilities or workshops, ports, piers, shipyards, or
other structures for the use of itself or other persons and may grant contracts or
concessions to other persons for the construction or provision of any of the said
facilities;
(b) sell, rent, grant leases, sub-leases or other interests or concessions in respect of land,
buildings or any other facility or structure within a Free Zone owned by, or under
control of, the Authority on such terms and conditions and subject to the payment of
such price, rental or other consideration as the Authority may think fit;
(c) subject to the provisions of section 21, approve, on such terms and conditions as the
Authority thinks fit, persons to carry on approved activities;
(d) import, store, exhibit, pack, unpack, re-pack, manufacture, assemble, refine, purify,
mix, transform, operate, re-ship (whether by sea or air), and manipulate all kinds of
merchandise, products, raw materials, containers and other commercial goods otherthan those goods which are prohibited for importation, storage, or manufacture in a
Free Zone;
(e) authorize persons, whether national or foreign, resident or non-resident, to carry out
the operations, activities or negotiations specified in paragraphs (a) and (d);
(f) provide water, light and power, telecommunications and any other public utilities or
services and enter into contracts for the supplying of the said utilities and services;G/SCM/Q3/JAM/8
Page 18
(g) develop industrial areas for the manufacture, processing, finishing, re-packing and
transshipment of products;
(h) subject to the provisions of section 21, with the approval of the Minister enter into
joint ventures with any person for the purpose of any approved activity;
(i) carry on or permit to be carried on such other activities as appear to it necessary,
advantageous or desirable for or in connection with the exercise and performance of
its functions or the operation of a Free Zone.
7. Ministerial directions
7. The Minister may, after consultation with the Chairman of the Authority, give to the
Authority directions of a general character as to the policy to be followed by the Authority in the
exercise and performance of its functions in relation to a Port Authority Free Zone.
8. Transfer of property
8.(1) The Minister may, by order, transfer to the Authority, any property belonging to the
Government which appears to him to be necessary or useful to the Authority in carrying out its
functions under this Act, and such property shall vest in the Authority by virtue of the order and
without further assurance.
(2) An order made pursuant to subsection (1) shall -
(a) specify the amount of compensation (if any), payable to the Government in relation to
property so transferred and the manner in which such compensation shall be paid;
(b) contain such incidental, consequential or supplementary provisions as the Minister
may think necessary or expedient for the purposes of the order.
(3) All property vested in the Authority under this Act shall be exempt from property tax,
sewerage rates and all rates imposed under the provisions of Part VII of the Kingston and St. Andrew
Corporation Act, or of the Parochial Rates and Finance Act.
9. Funds and resources related to Free Zones
9.(1) The funds and resources of the Authority in relation to the operations of the Port Authority
Free Zone (hereinafter referred to as the funds of the Port Authority Free Zone) shall comprise -
(a) moneys derived from rentals, leases, concessions or other activities carried on in the
Port Authority Free Zones;
(b) sums derived from loans raised by the Authority in accordance with the provisions of
this Act;
(c) moneys earned by or arising from investments made by the Authority in connection
with the operation of the Port Authority Free Zone;
(d) such moneys as may from time to time be placed by Parliament at the disposal of the
Authority for the purposes of this Act;G/SCM/Q3/JAM/8
Page 19
(e) such other moneys as may lawfully be pa id to the Authority in respect of any matter
incidental to its powers and duties under this Act.
(2) The funds of the Port Authority Free Zone, save in so far as they may be invested or utilized
pursuant to this Act, shall be held in any bank approved by the Authority.
10. Borrowing powers
10. For the purposes of enabling the Authority to carry out its functions under this Act, the
Authority may, with the consent of the Minister responsible for finance, borrow money in such
manner and subject to such conditions as that Minister may impose.
11. Power of Minister to guarantee loans to the Authority
11.(1) The Minister responsible for finance may, with the approval of the House of Representatives,
guarantee, in such manner and on such terms and conditions as he thinks fit, the repayment of the
principal and the payment of interest on any author ized borrowings of the Authority for the purposes
of carrying out its functions under this Act.
(2) Where the Minister responsible for finance is satisfied that there has been default in the
repayment of those principal moneys or in the payment of interest guaranteed under the provisions of
this section, he shall direct the repayment or, as the case may be, the payment out of the ConsolidatedFund of the amount in respect of which there has been such default and any such repayment shall be a
charge on the Consolidated Fund.
12. Repayment of, and interest on, advances and sums issued to meet guarantee
12. The Authority shall make to the Accountant-Gen eral, at such times and in such manner as the
Minister responsible for finance or other person designated by that Minister may direct, payments of
such amount as may be so directed in or towards repayment of advances made to the Authority under
subsection (1) of section 11 and of any sums issued in fulfilment of any guarantee given under that
section, and payments of interest on any sum outstanding for the time being in respect of such
advances and of any sums so issued at such rate as that Minister may direct, and different rates of
interest may be directed as respects different advances or sums and as respects interest for differentperiods.
13. Power to invest funds
13. All funds of a Port Authority Free Zone, not immediately required to be expended in the
meeting of any obligations or the performance of any functions of the Authority under this Act, may
be invested in such securities or other investments as may be approved by the Minister and the
Authority may, with the approval of the Minister, sell all or any of such securities or other
investments.
14. Accounts and audit
14.(1) The Authority shall, as respects the funds of each Port Authority Free Zone -
(a) keep proper accounts and other records in relation to its business; and(b) prepare annually a statement of accounts in a form which conforms with established
accounting principles.G/SCM/Q3/JAM/8
Page 20
(2) The Authority shall also, from time to time,  on the request in writing of the Minister, as
respects each Port Authority Free Zone, furnish information in respect of the accounts of the
Authority or such other information as the Minister may require.
(3) The accounts required to be kept pursuant to subsection (1) shall be audited by an auditor or
auditors appointed annually by the Authority and approved by the Minister.
(4) So soon as the said accounts have been audited, the Authority shall send the statements of its
accounts referred to in subsection (1) to the Minister  together with copies of any reports made by the
auditors on those statement or on the accounts.
(5) The auditors fees and any expenses, of the audit required under subsection (3) shall, as
respects, each Port Authority Free Zone, be paid by the Authority out of the funds of such Free Zone.
(6) The Auditor-General shall be entitled, on the direction of the Minister responsible for finance,
at all reasonable times to examine the accounts and other records of the Authority in relation to the
operations of any Port Authority Free zone.
15. Annual reports
15.(1) The Authority shall, not later than five months after the end of each financial year relating to
the operations of each Port Authority Free Zone or within such further time as may in specialcircumstances be allowed by the Minister, cause to be made and transmitted to the Minister, a report
dealing generally with the operations of such Free Zone during the preceding financial year.
(2) The Minister shall cause a copy of each annual report together with the annual statement of
accounts and the auditor's report thereon submitted to him pursuant to subsection (1) and subsection(4) of section 14 respectively, to be laid on the Table of the House of Representatives and the Senate.
16. Staff
16.(1) The Authority may appoint and employ in relation to a Port Authority Free Zone, at such
remuneration and on such conditions as it thinks fit, such officers, agents and servants as it thinks
necessary for the proper performance of its functions under this Act:
Provided that no salary exceeding the prescribed rate per annum shall be assigned to any post
without the prior approval of the Minister.
(2) The Authority may, with the approval of the Minister, make regulations determining
generally the conditions of service of servants of the Authority and, in particular, but without
prejudice to the generality of the foregoing power, may make regulations relating to-
(a) the grant of pensions, gratuities and other benefits to such servants and their
dependents, and the grant of gratuities and other benefits to the dependents or estatesof deceased servants of the Authority;
(b) the establishment and maintenance of sick funds, superannuation funds and provident
funds, the contributions payable thereto and the benefits receivable therefrom.
(3) The Governor-General may, subject to such conditions as he may impose, approve of the
appointment of any public officer in the service of the Government to any office with the Authority as
relates to a Port Authority Free Zone, and any public officer so appointed shall, in relation to pension,G/SCM/Q3/JAM/8
Page 21
gratuity, or other allowance, and in relation to other rights as a public officer, be treated as continuing
in the service of Government.
(4) In subsection (1) "the prescribed rate" means the sum of "five hundred thousand dollars or
such higher rate as the Minister may by order prescribe.
17. Power to delegate
17.(1) The Authority may delegate to any of its members, or to any of its employees or agents, such
of its functions under this Act as it may determine
(2) Every delegation under this section shall be revocable by the Authority and no delegation
shall prevent the exercise by the Authority of any function delegated.
18. Protection of members
18.(1) No member of the Authority shall be personally liable for any act or default of the Authority
done or omitted to be done in good faith in the course of performing the functions of the Authority
under this Act.
(2) Where any member of the Authority is exempt from liability by reason only of the provisions
of this section, the Authority shall be liable to the extent that it would be if the member were a servantor agent of the Authority.
Regulations
19. Regulations
19.(1) The Council may, with the approval of the Minister, make regulations -
(a) specifying the returns and other info rmation to be submitted to the Council by
Promoters and approved enterprises;
(b) prescribing and regulating the conditions for use of Free Zones and their facilities and
services;
(c) regulating, promoting or restricting the movement of persons, conveyances, vessels
and goods into, in and out of a Free Zone;
(d) specifying the terms and conditions of any security bond to be provided by a
Promoter or approved enterprises for the protection of Customs and other revenue
and to ensure compliance with this Act;
(e) regulating vehicular traffic anywhere within a Free Zone and, in particular, imposing
speed limits on vehicles therein;
(f) prescribing security arrangements as respects Free Zones;(g) prescribing rules for the disposal of unclaimed property within a Free Zone;(h) prescribing application fees and other charges which may be imposed pursuant to this
Act;G/SCM/Q3/JAM/8
Page 22
(i) prescribing any other matter or thing, whether similar to the above or not, in
respect of which it may be expedient to make regulations for the purpose of
carrying this Act into effect.
(2) The maximum penalty for a breach of any regulations made under this Act shall be a fine of
fifty thousand dollars or imprisonment for a term of twelve months.
(3) Each day on which a breach of the regulations is continued after conviction shall be deemed a
separate offence.
Operations within the Free Zone
20. Approval of enterprise to undertake approved activity
20.(1) Any enterprise which proposes to undertake an approved activity shall apply to the relevant
Promoter in writing for permission to do so, and shall submit such documents and information in
support of its application as the relevant Promoter may require.
(2) Subject to the provisions of this Act, the relevant Promoter may, by memorandum in writing,
grant, subject to such terms and conditions as it thin ks fit, approval for an enterprise to undertake the
approved activity specified in its application under subsection (1).
(3) In every memorandum issued under subsection (2), a date shall be declared to be the date on
which the relevant approved enterprise is deemed to begin the said approved activity for the purposes
of this Act.
(4) On the application of an approved enterprise, the relevant Promoter may, upon such
conditions as it thinks fit, amend a memorandum issued under this section in respect of the date on
which the relevant approved activity is deemed to begin, and thereupon, the provisions of this Act
shall, subject to any conditions specified in relation to such amendment, have effect as if for the date
on which the relevant approved activity was declared pursuant to subsection (2) to begin, there were
substituted the aforesaid date as amended.
21. Companies to be incorporated or registered locally
21.(1) A Promoter, or as the case may be, the C ouncil shall not grant approval for any approved
activity in a Free Zone to any person other than a company incorporated or registered in Jamaica in
accordance with the provisions of the Companies Act.
(2) [ Deleted by Act 24 of 1996 ]
22. Insurance business
22.(1) A Promoter or, as the case may be, the Council shall not grant approval to any person to carry
on insurance business in a Free Zone unless that person -
(a) is registered in Jamaica in accordance with the provisions of the Insurance Act;(b) has obtained the approval of the Superintendent of Insurance to operate in a Free
Zone; and
(c) satisfies the requirements of any provisions made by, or pursuant to, the Bank of
Jamaica Act in relation to the acquisition by insurance companies of foreign assetsG/SCM/Q3/JAM/8
Page 23
(2) Any insurance company, broker, agent, or sub-agent may, with the approval of the Promoter
and of the Superintendent of Insurance, establish a branch within a Free Zone for the conduct of
insurance business therein, so, however, that any such approval shall be subject to such conditions as
the Promoter and the Superintendent may consider necessary.
(3) All insurance business carried on in a Free Zone shall be subject to the provisions of the
enactments for the time being in for ce in Jamaica relating to insurance.
(4) Any person granted approval pursuant to this section shall -
(a) keep such records in such forms and containing such particulars; and(b) make such reports at such times, as may be required by the Superintendent of
Insurance, and shall permit the Superintendent of Insurance or any person authorized
by him at all reasonable times to inspect and examine such records and any
documentation relevant thereto.
(5) Where a person conducting insurance business establishes a branch in a Free Zone pursuant to
subsection (2), the Promoter shall permit the Superintendent of Insurance or any person authorized by
him to enter that Free Zone for the purpose of carrying out the inspection or examination of records
mentioned in subsection (4).
23. Dealing with, or disposal of, goods in Free Zones
23.(1) Subject to section 31 and to any absolute or specific prohibition imposed by any enactment
which may for the time being be in force, the Promoter and any approved enterprise shall be entitledto import into a Free Zone free of customs duty as defined in subsection (9) -
(a) any capital goods, consumer goods, raw materials, components or articles intended to
be used for the purposes of, and in connection with, an approved activity; and
(b) any of the articles specified in the Third Schedule if the Promoter or the approved
enterprise, as the case may be, satisfies the Commissioner of Customs that sucharticles are imported for the construction, alteration, reconstruction, extension or
repair of premises in a Free Zone or for the equipping thereof, and for the purposes of
this paragraph, articles for equipping premises shall be deemed to include equipment
for offices and other ancillary facilities necessary for the proper administration of the
premises and for the health, safety, hygiene and welfare at the premises of personsemployed therein.
(2) The Minister may by order, amend or vary the Third Schedule.(3) All goods brought into a Free Zone shall be consigned -
(a) to the Promoter or to an approved ente rprise and such goods may, with the approval
of the Promoter, be transferred from one approved enterprise to another or from the
Promoter to any approved enterprise, or from an approved enterprise to the Promoter;
or
(b) without prejudice to the provisions of section 34, to a bank acting on behalf of any
party to a transaction involving the Promoter or an approved enterprise.G/SCM/Q3/JAM/8
Page 24
(4) The Promoter may take such steps as it deems necessary to preserve goods within a Free
Zone, whether by moving such goods from one place to another or by storing such goods, and where
any expenses are incurred by the Promoter in so doing, the owner or consignee of such goods shall
reimburse the Promoter for any expenses so incurred.
(5) Subject to the provisions of this Act and any regulations, goods brought into a Free Zone
pursuant to this section may -
(a) unless otherwise directed by the Promoter, be stored, sold, exhibited, broken up,
packed, unpacked, repacked, assembled, distributed, sorted, graded, cleaned, marked,
re-marked, loaded, unloaded, reloaded, divided, mixed, separated, or otherwise
manipulated; or
(b) be worked, processed or re-processed or otherwise manipulated or manufactured; or(c) subject to any enactment pertaining thereto, be destroyed; or
(d) subject to subsections (6) and (7), be removed from a Free Zone or sent into the
customs territory, whether as originally packaged or otherwise.
(6) Where any goods which are dutiable on entry into the customs territory (whether in their
original condition or after manufacture or as part of or an ingredient of any goods manufactured in aFree Zone) are sent from a Free Zone into the customs territory, such goods shall be subject to the
provisions of the Customs Act and the General Consumption Tax Act and any regulations made under
those Acts, and if such goods are intended to be disposed of in the customs territory, they shall not be
removed from a Free Zone until -
(a) the consent of the Minister responsible for industry has been obtained; and
(b) the Commissioner of Customs is satisfied that all import restrictions relevant thereto
have been complied with and all duties payable in connection with the importation
thereof into the customs territory have been paid or security given therefor to his
satisfaction.
(7) Samples of goods may be displayed in a Free Zone but shall not be taken into the customs
territory without payment of, or without an undertaking satisfactory to the Commissioner of Customs
for the payment of, the relevant duty except in cases where the Commissioner of Customs is satisfied
that such goods are of no commercial value.
(8) Where goods are brought from the customs territory into a Free Zone for the purposes of an
approved activity, such goods shall be deemed to be exported for the purposes of duty drawback
under the Customs Act.
(9) In this section and in sections 27 and 28 customs duty includes, where applicable, general
consumption tax and any additional stamp duty related to customs warrants.
24. Persons not to enter Free Zones without permission
24.(1) No person shall enter, remain in or reside  in any Free Zone without the prior permission of
the Promoter.G/SCM/Q3/JAM/8
Page 25
(2) Any person who contravenes the provisions of subsection (1) shall be guilty of an offence and
shall be liable on summary conviction thereof in a Resident Magistrate's Court to a fine not exceeding
fifty thousand dollars, or to imprisonment for a term not exceeding twelve months.
25. Retail trade
25.(1) No retail trade shall be conducted within any Free Zone without the prior approval in writing
of the Commissioner of Customs and of the Counc il on the application of the Promoter and any
approval so granted shall be subject to such terms and conditions as the Commissioner of Customs or
the Council on the application of the Promoter, as the case may be, may impose.
(2) Any person who contravenes the provisions of subsection (1) or of any term or condition
imposed pursuant to that subsection shall be guilty of an offence.
26. Prohibition on consumption or use of dutiable goods in Free Zones
26.(1) No goods, of a type prescribed in the Fourth Schedule which would on entry into the customs
territory be dutiable, shall be used or consumed in a Free Zone without the prior approval in writing of
the Commissioner of Customs.
(2) Any person who contravenes the provisions of subsection (1) of this section shall be guilty of
an offence.
(3) The Council may, by order, amend, revoke or replace the Fourth Schedule.
27. Special provisions relating to articles imported with customs duty concessions
27. Every Promoter or approved enterprise which imports into a Free Zone any article with any
benefit in respect of customs duty under the provisions of this Act shall -
(a) keep such records in such forms and containing such particulars as may be required
by the Commissioner of Customs of the article so imported by him;
(b) cause such articles to be marked with such mark and in such manner as may be
required by the Commissioner of Customs; and
(c) permit the Commissioner of Customs or any person authorized by him at all
reasonable times to inspect the records relating to those articles and to have access to
any factory, warehouse, assembly plant or other premises under the control of theapproved enterprise for the purpose of examining any such articles which the
Commissioner of Customs believes to be therein and of satisfying himself of the
accuracy of the particulars in relation to such articles contained in such records.
28. Restriction upon disposal of articles imported with customs duty concessions
28. No article imported into a Free Zone by any approved enterprise with any benefit in respect of
customs duty under the provisions of this Act shall be used for purposes other than those of the
approved activity, sold, given away or otherw ise disposed of by such enterprise except -
(a) in the case of an assignment of the approved enterprise, for the purposes of which
such articles were imported into a Free Zone and to be used within that Free Zone, to
the assignee of such enterprise with the approval of the Council;G/SCM/Q3/JAM/8
Page 26
(b) where such article is to be disposed of in the customs territory, upon the approved
enterprise paying to the Commissioner of Customs an equivalent to the amount of
customs duty and other dues and charges which would have been payable to the
Government upon the importation of such article but for the provisions of this Act;
(c) in such other circumstances and on such terms as the Commissioner of Customs may
from time to time approve.
29. Manufacture or manipulation in Free Zone
29.(1) Where any process of manufacture or manipulation which takes place within a Free Zone
involves the use of dutiable materials, whether local or imported, the manufacturer or manipulator, asthe case may be, shall maintain in, a form acceptable to the Commissioner of Customs records of the
quantities of the various materials used in the process and, when required to do so by the
Commissioner of Customs, permit verification of the records.
(2) Where under the provisions of this Act -
(a) entry into the customs territory is permitted of any goods manufactured, assembled,
mixed or otherwise manipulated in a Free Zone; and
(b) either the goods or the materials used in the manufacture or manipulation thereof are
dutiable, the manufacturer or manipulator of such goods shall-
(i) obtain the prior approval in writing of the Commissioner of Customs for such
entry (which approval may be granted or withheld as the Commissioner of
Customs and Excise thinks fit); and
(ii) if the Commissioner of Customs so requires, manufacture or manipulate the
goods under the supervision of the Commissioner of Customs.
(3) Any manufacture or manipulation permitted under this section shall be subject to such terms
and conditions as the Commissioner of Customs may impose and to such regulations as may be made
pursuant to this Act.
(4) The Commissioner of Customs may give an allowance for recoverable or irrecoverable waste,
except that where such recoverable waste is sent into customs territory, it shall be dutiable in its
condition and quantity and at its weight at the time of entry.
30. Allowances for Jamaican labour or materials
30. Regulation under this Act may prescribe allowances or deductions which may, having regard
to the extent to which Jamaican labour or materials contribute to the ultimate value of any goods, be
made in assessing the customs duty on goods entered from a Free Zone into the customs territory.
31. Disposal of goods abandoned in Free Zone
31.(1) Where it appears to a Promoter that any goods or property have been abandoned in a Free
Zone for a period exceeding six months, Promoter with the approval of the Council may dispose of
such goods or property whether by destruction, sale or otherwise and in the case of disposal by sale,
shall apply the proceeds of such sale against any fees or other expenses incurred by the Promoter or
the Council in connection with those goods or property or such disposal.G/SCM/Q3/JAM/8
Page 27
(2) Where any balance remains after the settling of the fees and expenses pursuant to subsection
(1), that balance may, if claimed within three months of the date of the disposal, and if the Promoter is
satisfied that the claimant was the owner of the goods disposed of or entitled thereto, be paid to the
claimant, but where there is no claimant for the proceeds of any such disposal by sale, such proceeds
shall be paid into and become part of the funds of the Council.
(3) Nothing in subsection (1) shall be construed as authorizing the sale, destruction or disposal of
any goods for use in the customs territory other than in such circumstances and on such terms as the
Commissioner of Customs may from time to time approve.
32. Goods not to be taken into or stored in Free Zone
32. Notwithstanding any other provision contained in this Act the following goods shall not be
taken into or stored in any Free Zone -
(a) firearms and ammunition (other than by members of the Jamaica Constabulary Force
or the Jamaica Defence Force or by security guards employed to work in the FreeZone in the course of their duties, or by such other persons as may be authorized by
the Council);
(b) dangerous explosives;
(c) petroleum, inflammable materials, hazardous cargoes and oil fuels other than in such
quantities and on such terms and conditions as may be prescribed or permitted by the
Council.
Licences
33. Import and export licensing
33.(1) Approved enterprises shall not be subject to import licensing or, where goods are being
shipped other than to customs territory, to export licensing.
(2) Export of goods from a Free Zone to the customs territory shall, save as otherwise prescribed
by or pursuant to this Act, be subject to the same customs and licensing requirements as apply to
goods imported from other countries.
(3) For the purposes of this Act, goods shipped, under and in accordance with terms approved by
the Commissioner of Customs, from one Free Zone th rough the customs territory directly to another
Free Zone, shall be treated as being imported direct to that other Free Zone.
Banking and foreign currency activities
34. Banking activities
34.(1) All banking activities carried on in a Free Zone shall be subject to the provisions of the
enactments for the time being in fo rce in Jamaica relating to banking.
(2) Any bank licensed under the Banking Act may, with the approval of the Council and subject
to subsection (1), establish a branch within a Free Zone, and may at such branch conduct normal
banking business permitted under the Banking Act and the Bank of Jamaica Act.
(3) [ Deleted by Act 24 of 1996 ]G/SCM/Q3/JAM/8
Page 28
35. [Repealed by Act 24 of 1996]
35. [ Repealed by Act 24 of 1996 ]
36. [Repealed by Act 24 of 1996]
36. [ Repealed by Act 24 of 1996 ]
37. [Repealed Act by 24 of 1996]
37. [ Repealed Act by 24 of 1996 ]
38. Income tax relief in relati on to manufacturing activities
38. Any approved enterprise engaged in manufacturing shall be granted total relief from income
tax in respect of profits or gains earned from such manufacture.
39. Income tax relief in relation to international trading activities
39. Any approved enterprise not engaged in manufacturing but engaged in activities involving
international trading in products (including products originating in countries belonging to theCaribbean Common Market) shall be granted total relief from income tax in respect of profits or gains
earned from the activities aforesaid.
Miscellaneous
40. Service charges and dividends subject to withholding tax
40. Service charges and dividends payable to an approved enterprise by organizations operating
in the customs territory shall be subject to withholding tax under the Income Tax Act.
41. Approved enterprises to submit returns
41. Every approved enterprise shall submit to the Council at such intervals as may be prescribed,
such statistical data and such information and returns as respects their sales and purchases and other
operations as the Council may require or as may be prescribed.
42. Commissioner of Income Tax may issue certificates regarding benefits
42. Notwithstanding the provisions of section 4 of the Income Tax Act, it shall be lawful for the
Commissioner of Income Tax to certify in such form as may be prescribed, the benefits enjoyed by an
approved enterprise under the provisions of this Act in order that such certificate may be produced by
the approved enterprise to the fiscal authorities of any other country in which the approved enterprisemay be liable to suffer taxation.
43. Work permits
43.(1) A person who is a foreign national or Co mmonwealth citizen employed by the Council or by
an approved enterprise established in any Free Zone shall not, by virtue only of such employment, be
exempt from the provisions of the Foreign Nationals and Commonwealth Citizens (Employment) Act,
but the Minister responsible for the operation of that Act shall, in considering applications by or on
behalf of such a person, have regard to the need to facilitate the operations of the Free Zones.G/SCM/Q3/JAM/8
Page 29
(2) Where a person referred to in subsection (1) is employed by an approved enterprise, he and
that enterprise shall be exempt from such provisions of the Foreign Nationals and Commonwealth
Citizens (Employment) Act as authorize or require the payment or imposition of fees in relation to the
grant of a work permit to him.
Offences and Penalties
44. Penalty for offences not otherwise provided for
44.(1) Every omission or neglect to comply w ith, and every act done or attempted to be done
contrary to the provisions of this Act or any regulation made thereunder, shall be an offence under thisAct and in respect of such offence or any other offence under this Act for which no penalty has been
expressly provided, the offender shall be liable on summary conviction thereof in a Resident
Magistrate's Court, to a fine not exceeding one hundred thousand dollars, or, in default of payment, to
imprisonment for a term not exceeding twelve months.
(2) For the purposes of subsection (1), in the case of a continuing offence every day on which the
violation continues after conviction shall be deemed a separate offence
45. Offences by bodies of persons and by servants and agents
45.(1) Where an offence under this Act has been committed by a company, firm, society or other
body of persons, any person who at the time of the commission of the offence was director, manager,
secretary or other similar officer or a partner of the company, firm, society or other body of persons,
or was purporting to act in such capacity, shall be deemed to be guilty of an offence, unless he proves
that the offence was committed without his consent or connivance and that he exercised all suchdiligence to prevent the commission of the offence as he ought to have exercised, having regard to the
nature of his functions in that capacity and to all the circumstances.
(2) Where any person would be liable under this Act to any punishment, penalty or forfeiture for
any act, omission, neglect or default, he shall be liable to the same punishment, penalty or forfeiture
for every such act, omission, neglect or default of any clerk, servant or agent, or of the clerk or servant
of such agent, if such act, omission, neglect or default was committed by such clerk or servant in thecourse of his employment or by such agent when acting on behalf of such person or by the clerk or
servant of such agent when acting in the course of his employment in such circumstances that had
such act, omission, neglect or default been committed by the agent his principal would have been
liable under this section.
46. Penalties
46.(1) The provisions of subsection (1) of section 99 of the Income Tax Act shall apply to any false
statement or representation made or any false return delivered or any false accounts kept or prepared
with reference to any of the benefits created by this Act as if such false statement or representationhad been made or such false return had been delivered or such false accounts had been kept or
prepared with reference to income tax or profits or gains chargeable under the Income Tax Act.
(2) Every approved enterprise which contravenes the provisions of section 27 and every director,
manager, agent and officer of that approved enterp rise who is knowingly a party to the contravention
shall be guilty of an offence and, on summary conviction thereof in a Resident Magistrate's Court,
shall be liable to a fine not exceeding one hundred thousand dollars, and in default of payment
thereof, every such director, manager, agent or officer shall be liable to be imprisoned for a term not
exceeding twelve months.G/SCM/Q3/JAM/8
Page 30
(3) Every approved enterprise which contravenes the provisions of section 28 and every director,
manager, agent and officer of the approved enterpri se who is knowingly a party to the contravention
shall be guilty of an offence and, on summary conviction thereof in a Resident Magistrate's Court,
shall be liable to a penalty three times the value of the article in respect of which the contraventionoccurred and, in default of payment, every such director, manager, agent or officer shall be liable to
be imprisoned for a term not exceeding twelve months.
FIRST SCHEDULE (Section 5(2))
Prescribed activities which may be carried on in Free Zones
(a) Warehousing and storing;(b) manufacturing operations;(c) transshipment operations;(d) loading and unloading operations;
(e) exporting;
(f) importing;(g) service operations, including banking data processing and telemarketing, insurance,
professional services;
(h) packing and shipping;(i) assembling;(j) processing, refining, purifying, mixing;(k) merchandising.
SECOND SCHEDULE (Section 3)
Area of Kingston Export Free Zone
The following shall be the area of the Kingston Export Free Zone -
A
All that parcel of land situate in the parish  of St. Andrew known as Lot 452 on the plan of
Newport West, deposited in the Office of Titles on the 30th August, 1967, and registered at Volume
1041 Folio 170 of the Register Book of Titles and Lot 453 on the plan of part of Gordon Cay
registered at Volume 1108 Folio 786 of the Register Book of Titles, excluding those areas shown as
lots numbered 1 to 4, 11 to 16, 74, 92A, 92B, 147 an d Causeway Easement indicated as lot 452B as
appear on the proposed sub-division plan of lots  452 and 453 deposited at  Kingston and St. Andrew
Corporation and bounded on the north-eastern side by First Street, on the south-eastern side partly byG/SCM/Q3/JAM/8
Page 31
Fourteenth Avenue, partly by lands registered at Volume 1048 Folio 182 of the Register Book of
Titles and partly by Kingston Harbour now reclaimed lands, on the southern side by lands registered
at Volume 1135 Folio 816 of the Register Book of Ti tles and on the north-western side by main road
from Kingston to Port Henderson known as the Causeway.
B
Commencing at the common corner of lands in  the parish of Kingston known as Newport
East formerly Kingston Pen registered at Volume  942 Folio 27 of the Register Book of Titles and
lands known also as Newport East formerly Kingst on Pen registered at Volume 1048 Folio 262 of the
Register Book of Titles and the southern boundary of Marcus Garvey Drive; thence north-westerly
along the common boundary between Marcus Garvey Drive and lands registered at Volume 1048Folio 262 of the Register Book of Titles to a point approximately 227 feet from the starting point;
thence south-westerly, north-westerly and westerly along the boundaries common to sections 1B, 1C
as appears on plan bearing Survey Department's Examination Number 138494 to a point on the high
water mark of Kingston Harbour; thence south-easterly along the said high water mark of the common
corner of lands registered at Volume 942 Folio 27 and lands registered at Volume 1048 Folio 262;thence north-easterly along the common boundary betw een the last two mentioned registered lands
back to the starting point. Or as may be more particularly described as section 1C and ID on plan
bearing Survey Department's Examination Number 138494.
C
I
Part of Bellevue, situate in the parish of Kingston.
Commencing at a point on the existing, fence defining the northern boundary of Shell
Company (W. I.) Limited, Rockfort Installation Plant, the said point being approximately one hundred
and fifty-seven feet (157') north of the storage tank identified by the number ten (10), thence
sequentially northerly for approximately one hundred and sixty feet (160'), easterly for approximately
one hundred and ninety feet (190'), southerly for ap proximately sixty-three feet (63'), easterly for
approximately one hundred and sixteen feet (116'), southerly for approximately sixty-eight feet (68'),
westerly for approximately one hundred and sixteen feet (116'), and southerly for approximatelytwenty-three feet 23') along a course separating the lands herein described from the remaining lands
registered at Volume 127 Folio 19 in the name of Shell Company (W. I.) Limited, to a point on the
existing fence, aforementioned, thence westerly along  the said existing fence, aforementioned, to the
point of commencement, being approximately 0.87 acre of land, part of the property known as
Bellevue, registered at Volume 127 Folio 19 in the Register Book of Titles.
II
Areas occupied by certain tanks and pipe lines at Bellevue, situate in the parish of Kingston.
All those areas occupied by tanks sited at the Shell Company (W. I.) Limited, Rockfort
Installation Plant identified by the numbers 3, 4, 6, 9, 11 and 16 together with: firstly that area
traversed by a pipeline which commences as a four inch diameter pipeline at a point on the fence
defining the northern boundary of the said Shell Company (W. I.) Limited, Rockfort Installation
Plant, the said point being approximately sixty-five feet (65') east of the south-western corner of the
area described at (l) above, thence sequentially southerly for approximately five feet (5'), westerly for
approximately one hundred and twelve feet (112'), southerly for approximately sixty-five feet (65'),
and westerly for approximately twenty-five feet (25' ), to a point where it connects to and continues as
an eight inch (8") diameter pipeline, thence sequentially southerly for approximately one hundred andG/SCM/Q3/JAM/8
Page 32
eighty feet (180'), easterly for approximately four hundred and twenty feet (420'), southerly for
approximately one hundred and twenty-five feet (125' ), north-easterly for approximately ten feet (10'),
south-easterly for approximately fifty five feet (55'), easterly for approximately one hundred and
twenty-five feet (125') and southerly for approximatel y fifty feet (50') to a Finished Product Discharge
Pump sited east of a building used as Liquid Petroleum Gas store-room, thence from the said FinishedProduct Discharge Pump sequentially westerly for approximately ten feet (10'), northerly for
approximately fifty-five (55'), westerly for ap proximately two hundred feet (200'), southerly for
approximately three hundred and fort y-five feet (345') to a point on the northern boundary of the Main
Road leading from Kingston to Morant Bay, thence southerly, underground, to a point on the southern
boundary of the said Main Road leading from Kingston to Morant Bay, thence southerly for
approximately four hundred and twenty-five feet (425') partially along a jetty to a point at the Shell
Company (W. I.) Limited Wharf, together with all those areas traversed by the 8" diameter lateralleading to the tank number 3, the areas occupied by the Finished Product Discharge Pump
aforementioned and the Denaturant Pump sited east of the tank numbered 16, the area traversed by the
pipeline leading from the tank numbered 16 aforementioned to the Denaturant Pump and the area
traversed by the 4" diameter pipeline leading from the aforementioned Denaturant Pump to the 4"
diameter pipeline firstly described: Secondly, that area traversed by a pipeline which commences asan eight inch (8") diameter pipeline at a point at the said Shell Company (W. I.) Limited Wharf
aforementioned, the said point being east of the pipeline herein firstly described, thence northerly
partially along a jetty aforementioned, to the southern boundary of the said Main Road leading from
Kingston to Morant Bay, thence northerly underground to a point on the northern boundary of the
aforementioned Kingston to Morant Bay Main Road, thence sequentially northerly for approximatelythree hundred and fifty feet (350'), easterly for approximately fifty feet (50'), southerly for
approximately twenty-five feet (25'), easterly for approximately five feet (5') to a point on a Manifold
sited north of a building aforementioned, used as a Liquid Petroleum Gas storeroom, and northerly for
approximately forty-five feet (45') to a point wh ere it connects to and continues as a 6" diameter
pipeline, thence sequentially north-westerly for approximately seventy-five feet (75') northerly forapproximately eight feet (8') and north-westerly for approximately fifty feet (50') to a point on the
tank identified by the number 6: Thirdly, the area traversed by an eight inch (8") diameter pipeline
commencing at a point on the 6" diameter pipeline herein secondly described, the said point being
approximately forty-two feet (42') south-east of the aforementioned tank numbered 6, thence
sequentially north-easterly for approximately thirty feet (30'), and northerly for approximately one
hundred feet (100') to a point where it makes a junction with another 8" diameter pipeline herein
fourthly described: Fourthly, that area traversed by an eight inch (8") diameter pipeline commencingat the aforementioned manifold sited north of a building used as a L.P.G. store-room, the said point
being east of the pipeline herein secondly described thence sequentially northerly for approximately
one hundred and eighty feet (180') north-westerly for approximately five feet (5'), northerly for
approximately twenty feet (20') and westerly for approximately thirty feet (30') to a junction with a 6"
diameter pipeline herein sixthly described, thence sequentially westerly for approximately ninetyseven feet (97'), north-westerly for approximately seven feet (7') and northerly for approximately
seventeen feet (17') to a point on the tank numbered 9 aforementioned together with the area traversed
by an 8" diameter lateral leading to the tank numbered 11 aforementioned: Fifthly, that area traversed
by an 8" diameter pipeline commencing at the aforementioned manifold sited north of a building used
as L.P.G. store-room the said point being east of the pipeline herein fourthly described, thencesequentially northerly for approximately one hundred and eighty-three feet (183') north-westerly for
approximately five feet (5') westerly for approxim ately forty-five feet (45') and north-westerly for
approximately ninety feet (90') to a point on the tank numbered 9 aforementioned: Sixthly, that area
traversed by a pipeline which commences as a 6" diameter pipeline at a point aforementioned, on the
pipeline herein fourthly described, thence northerly for approximately ninety-five feet (95') to a pointwhere it narrows down to a 3" diameter pipeline, the said Ethanol Charge Pump as a 2" diameter
pipeline sequentially northerly for approximately twenty feet (20'), westerly for approximately three
hundred and sixty-eight feet (368'), northerly for approximately seventy feet (70'), easterly for
approximately one hundred and ten feet (110') and northerly for approximately three feet (3'), to aG/SCM/Q3/JAM/8
Page 33
point on the said fence defining the northern boundary of the Shell Company (W. I.) Limited,
Rockfort Installation Plant, the said point being west of the pipeline herein firstly described, together
with the areas occupied by the abovementioned Ethanol Charge Pump and an adjacent standby
Ethanol Charge Pump with the necessary 3" and 2" diameter pipeline connections: Seventhly, the area
traversed by a 4" diameter pipeline commencing at a point east of the pipeline herein firstly described,the said point being on the fence defining the northern boundary of the Shell Company (W. I.)
Limited, Rockfort Installation Plant aforementioned, thence sequentially southerly for approximately
ten feet (10'), westerly for approximately one hundred and fifteen feet (115'), southerly for
approximately seventy feet (70'). easterly for appr oximately three hundred and fifty-five feet (355')
and southerly for approximately forty feet (40') to connect with the pipeline herein sixthly described;
being partly unregistered and in part, part of the property known as Bellevue registered at Volume 127
Folio 19 in the Register Book of Titles.
III
The areas described in I and II hereof are more particularly described in the plan prepared by
Butler Research and Engineering Company and Associate Consultants, Precon Consultants Limiteddated 28 October 1984 and kept in the offices of the Port Authority, 15-17 Duke Street, Kingston,
Jamaica.
THIRD SCHEDULE (Section 23)
Articles which, subject to section 23, may be imported free of customs duty into a Free Zone
Building materials
ToolsPlant
Machinery
Pipes
Pumps
Conveyor belts
Other appliances and materials necessary for construction, alteration, extension and repair of
premises.
FOURTH SCHEDULE (Section 26)
Goods which, subject to section 26, shall not be used in a Free Zone
Food
Beverages
Cigarettes
TobaccoPetroleum products.
FIFTH SCHEDULE (Section 2(A))
1. The Council shall consist of such number of members not being less than five and not more
than nine as the Minister may from time to time appoint.   Constitution of CouncilG/SCM/Q3/JAM/8
Page 34
2.(1) the members shall be appointed by the Minister by instrument in writing from amongst
persons appearing to him.   Appointment of members
(a) to be representative of the public sector and the private sector; and(b) to be qualified as having had experience of and shown capacity in, matters relating to
finance, commerce, electronic data processing, administration or in such other matters
as the Minister considers appropriate for appointment under this paragraph.
(2) A member shall, subject to the provisions of this Schedule, hold office for such period not
being less than two nor more than five years, as the Minister may direct in the instrument appointingthe member and such member shall be eligible for re-appointment.
3.(1) The Minister shall appoint one of the members to be Chairman of the Council.   Chairman
(2) In the case of the absence or inability to act of the Chairman, the Minister, if it appears to him
that the absence or inability is likely to be of long duration, may appoint an y other member to perform
the functions of the Chairman. 
4.(1) The Minister may appoint any person appearing to him to have the qualifications necessary
for appointment as a member under the provisions of paragraph 2 (1) to act temporarily in the place ofany member in the case of the absence or  inability to act of such member.   Acting appointments and
co-option of members
(2) The Council may, if it thinks fit, co-opt not  more than two persons to be members of the
Council for such period and on such terms as it may determine.
5.(1) The Chairman may at any time resign his office by instrument in writing addressed to the
Minister and such resignation shall take effect as from the date of the receipt by the Minister of the
instrument.   Resignation
(2) Any member other than the Chairman may at any time resign his office by instrument in
writing addressed to the Chairman who shall forthwith  cause it to be forwarded to the Minister and,
upon the date of receipt by the Minister of such instrument, the member shall cease to hold office.
6. The Minister may at any time revoke the appointment of any member if he thinks it expedient
to do so.   Revocation of appointment
7. The appointment, removal or resignation of any member shall be notified in the Gazette.
Gazetting of appointments
8. The Minister may, on the application of any member, grant leave of absence to such member.
Leave
9.(1) The seal of the Council shall be kept in the custody of the Chairman or any officer of the
Council authorized by the Council in that behalf, and shall be affixed to instruments pursuant to a
resolution of the Council, in the presence of the Ch airman or any other member authorized to act in
that behalf, and the Secretary thereof.   Seal and execution document
(2) The seal of the Council shall be authenticated by the signature of the Secretary.G/SCM/Q3/JAM/8
Page 35
10.(1) The Council shall meet as often as may be n ecessary or expedient for the transaction of its
business and such meetings shall be held at such places and times and on such days as the Council
may determine.   Procedure and meetings
(2) The Chairman may at any time call a special meeting of the Council and shall call a special
meeting to be held within seven days of a written request for that purpose addressed to him by any
three members.
(3) The Chairman shall preside at meetings of the Council and if the Chairman is absent from a
meeting the members of the Council present shall elect one of their number to preside at the meeting.
(4) The quorum of the Council shall be five.(5) The decisions of the Council shall be by a majority of votes, and in addition to an original
vote the Chairman or other member presiding at the meeting shall have a casting vote in any case in
which the vote is equal.
(6) Subject to the provisions of this Schedu le the Council may regulate its own proceedings. 
11. A member of the Council who is directly or indirectly interested in any matter which is being
dealt with by the Council.   Disclosure of interest
(a) shall disclose the nature of his interest at a meeting of the Council; and
(b) shall not take part in any deliberations or decisions of the Council with respect to that
matter.
12. The funds of the Council shall consist of such moneys as may from time to time be placed at
its disposal for the purpose of this Act by Parliament, or such other moneys as may lawfully be paid to
the Council.   Funds of the council
13.(1) The Council shall keep proper accounts and other records in relation to its business and shall
prepare annually a statement of accounts in a form satisfactory to the Minister and shall submit the
same with vouchers from time to time to be audited by the Auditor-General or such other auditor asthe Minister may approve.   Accounts and records
(2) The Council shall, on or before the thirty-fir st day of October in each year submit to the
Minister for his approval, its estimates of revenue and expenditure in respect of the financial year
commencing on the first day of April next following.
14.(1) The Council shall, as soon as practicable after the end of each financial year, cause to be
made and transmit to the Minister.   Annual report
(a) a statement of its accounts audited in accordance with paragraph 13;(b) a report dealing generally with the activiti es of the Council during that financial year,
and containing such information relating to the proceedings and policy of the Council
as can be made public without detriment to the interest of the Council.
(2) The Minister shall cause a copy of the report together with the annual statement of accounts
and the auditor's report thereon to be laid on the respective Tables of both Houses of Parliament. G/SCM/Q3/JAM/8
Page 36
15. The Council shall furnish the Minister with such returns, accounts and other information as he
may require with respect to the activities of the Counci l, and shall afford to him facilities for verifying
such information in such manner and at such times as he may reasonably require.    Power of Minister
to require returns
16.(1) The Council may appoint and employ, at such remuneration and on such conditions as it
thinks fit, such officers, agents and servants as it thinks necessary for the proper performance of its
functions under this Act:   Staff of Council
Provided that no salary exceeding the prescribed rate shall be assigned to any post without the
prior approval of the Minister.
(2) The Council may, with the approval of the Mi nister, make regulations determining generally
the conditions of service of servants of the Council and, in particular, but without prejudice to the
generality of the foregoing power, may make regulations relating to -
(a) the grant of pensions, gratuities and other benefits to such servants and their
dependents, and the grant of gratuities and other benefits to the dependents or estates
of deceased servants of the Council;
(b) the establishment and maintenance of sick funds, superannuation funds and provident
funds, the contributions payable thereto and the benefits receivable therefrom.
(3) The Governor-General may, subject to such conditions as he may impose, approve of the
appointment of any public officer in the service of the Government to any office with the Council and
any public officer so appointed shall, in relation to pension, gratuity or other allowance, and to other
rights as a public officer, be treated as continuing in the service of Government.
(4) In subsection (1) "the prescribed rate" means the sum of five hundred thousand dollars or
such higher rate as the Minister may, by order, prescribe. 
17.(1) No member of the Council shall be personally liable for any act or default of the Council done
or omitted to be done in good faith in the course of performing the functions of the Council under this
Act.   Protection of members
(2) Where any member of the Council is exempt from liability by reason only of the provisions of
this section, the Council shall be liable to the extent that it would be if the member were a servant or
agent of the Council.
18. The office of the Chairman or member of the Council shall not be a public office for the
purposes of Chapter V of the Constitution of Jamaica.   Chairman or member of the Council not
public office
19. There shall be paid to the Chairman and other members of the Council such remuneration
(whether by way of honorarium, salary or fees) and such allowances as the Minister may determine.
Remuneration of membersG/SCM/Q3/JAM/8
Page 37
FOREIGN SALES CORPORATION ACT
Regulation
ARRANGEMENT OF SECTIONS
Act 20 of 1984
1. Short title
2. Interpretation3. Power of Minister to grant certificate of designation to foreign sales corporation
4. Termination of status as designated corporation
5. Relief from income tax
6. Relief from income tax of director or employees of designated corporation
7. Exemption from certain statutory contributions8. Dividends to non-resident shareholders in designated corporation
9. Transactions with persons resident in Jamaica
10. Exemption from Exchange Control Act
11. Free entry of machinery and equipment
12. Restrictions upon the disposal of goods imported or purchased free of customs and similar
duties
13. Fees
14. Exemption from income tax of investment in foreign currency
15. Regulations
First Schedule - (Section 2)
Second Schedule - (Section 13)
1. Short title
1. This Act may be cited as the Foreign Sales Corporation Act.
2. Interpretation
2. In this Act, unless the context otherwise requires -
"designated corporation" means a foreign sales corporation in relation to which a certificate of
designation has been granted under section 3 and remains in force;
"domestic operations" in relation to a designated corporation means -
(a) the acquisition or rental of accommodation to be occupied and used by a designated
corporation for the purposes of its business or to be used for the purpose of providing
living accommodation for employees or officers of the corporation;
(b) the maintenance or disposal of such accommodation as aforesaid;
(c) the provision of staff for the corporation;
(d) the provision of equipment and services for use in such accommodation or by such
staff as aforesaid for the purposes of the business of the corporation;G/SCM/Q3/JAM/8
Page 38
(e) the provision of technical and professional advice and services (including advice and
services as a director of the corporation) for the purposes of the business of the
corporation;
(f) such other operations as may be prescribed by the Minister by order;
"foreign sales corporation" means any corporation which
(a) is incorporated or registered under the Companies Act;(b) is, pursuant to the provisions of the relevant legislation in a scheduled State, qualified
to be regarded as a foreign sales corporation in that State; and
(c) has elected, or satisfied the Minister that it proposes to elect within a period indicated
by the corporation to the Minister, to be so regarded in that State;
"foreign trade transaction" means, subject to the provisions of this Act, any transaction -
(a) entered into by a designated corporation with persons not resident in Jamaica; and(b) which, pursuant to the relevant legislation of the scheduled State, is the source from
which foreign trade income is determined in establishing the tax liability of a foreign
sales corporation in that State;
"relevant legislation" in relation to any scheduled State means the legislation of that State which
provides for tax concessions to foreign sales corpor ations and which is specified, in relation to the
scheduled State, in the second column of the First Schedule.
"scheduled State" means a State which -
(a) is specified in the first column of the First Schedule; and(b) by its legislation provides for the grant of tax concessions to foreign sales
corporations.
3. Power of Minister to grant certificate of designation to foreign sales corporation
3.(1) The Minister may, on the application of a foreign sales corporation, grant a certificate
certifying that the corporation is a designated  corporation for the purposes of this Act.
(2) A certificate under this section shall, subject to the provisions of this Act, be valid for a period
of fifteen years and may from time to time be re-issued for further periods of fifteen years.
(3) An application for a certificate under subsection (1) shall be made in writing to the Minister
in such form and containing such particulars as may be prescribed.
4. Termination of status as designated corporation
4.(1) A designated corporation may, by notice in writing to the Minister, terminate its status as a
designated corporation from such date as may be specified in the notice.
(2) Subject to subsection (3), the Minister may, by notice in writing to a designated corporation,
terminate from such date as may be specified in the notice, the certification of that corporation if -G/SCM/Q3/JAM/8
Page 39
(a) the corporation ceases to be a foreign sales corporation in the scheduled State
pursuant to the relevant legislation; or
(b) the Minister is satisfied that the corporation has failed to comply with the provisions
of this Act.
(3) Before terminating a certificate of designation pursuant to subsection (2) the Minister shall
afford to the corporation an opportunity -
(a) to explain the circumstances of the cessation, or as the case may be, failure; and
(b) if possible, to take such steps as may be appropriate to avoid termination.
(4) The status of a corporation as a designated corporation shall, notwithstanding any notice
under this section and subject to subsection (5), continue until the end of the year of assessment in
which the notice takes effect or until -
(a) such earlier date as the corporation may specify; or(b) such later date as the Minister, on the application of the corporation, may allow.
(5) Where at any time before -
(a) the end of the year of assessment referred to in subsection (4); or(b) the date referred to in paragraph (b) of that subsection,
the Minister is satisfied as respects any corporation served with a notice under this section that the
corporation has taken such steps as would justify the revocation of that notice, the Minister may
revoke such notice and thereupon the corporation shall continue in the status of a designated
corporation as if the notice of termination had not been issued.
5. Relief from income tax
5.(1) Subject to subsection (2), a designated corpor ation shall, in respect of the year of assessment
in which it is certified a designated corporation and any subsequent year of assessment, so long as it
remains a designated corporation, be exempt from income tax (including company profits tax and
additional company profits tax) in respect of income arising from foreign trade transactions.
(2) A designated corporation shall be relieved of income tax in respect of
(a) interest on loans or deposits; and
(b) other approved investment activity.
(3) In this Act "approved investment activity" m eans investment in such ventures in Jamaica as
the Minister may from time to time approve for such period and on such terms and conditions as he
may specify.
(4) Nothing in this section shall exempt a designated corporation from its obligation-G/SCM/Q3/JAM/8
Page 40
(a) to deduct and account to the Commissioner of inland Revenue for income tax
required to be withheld from emoluments payable to its employees; or
(b) to render to the Commissioner of Income Tax, returns and information required
pursuant to the Income Tax Act.
6. Relief from income tax of director or employees of designated corporation
6.(1) Where a person is entitled, pursuant to a treaty between a scheduled State and Jamaica, to set
off against income tax payable by him in a scheduled State income tax payable in Jamaica, he shall be
entitled to relief from so much of the income tax payable by him in respect of the emoluments earned
by him in the capacity of director or, as the case may be, employee of a designated corporation asexceeds his liability to income tax in the scheduled State.
(2) Where such person as referred to in subsection (1) is not entitled as mentioned in that
subsection, he shall be relieved of so much of the income tax payable by him in Jamaica as may be
required to avoid double taxation of the emoluments aforesaid.
7. Exemption from certain statutory contributions
7.(1) A designated corporation shall be exempt from the provisions of the Human Employment and
Resource Training Act.
(2) A person who is employed in Jamaica as a director, or, as the case may be, employee of a
designated corporation shall -
(a) if he is not ordinarily resident in Jamaica, be exempt from the provisions of the
enactments referred to in subsection (4);
(b) in any other case, be liable to pay contributions or tax pursuant to those enactments
(3) A designated corporation shall, as regards the enactments referred to in paragraphs (a) and (b)
of subsection (4), be exempt from any liability to pay contributions or tax as an employer but nothing
in this subsection shall -
(a) exempt the designated corporation from its liability to pay contributions under the
enactment referred to in paragraph (c) of subsection (4);
(b) in relation to any employee referred to in paragraph (b) of subsection (2), exempt a
designated corporation from its obligations under all the enactments referred to in
subsection (4) -
(i) to deduct from the emoluments of the employee, contributions or tax payable
by such employee and to make payment of the amount deducted to theappropriate authority; and
(ii) to make such returns and supply su ch information in relation to the employee
as may
be required pursuant to those enactments.G/SCM/Q3/JAM/8
Page 41
(4) The enactments referred to in subsections (2) and (3) are -
(a) the National Housing Trust Act;(b) the provisions of any law for the time being in force relating to the payment of
education tax;
(c) the National Insurance Act.
8. Dividends to non-resident shareh olders in designated corporation
8.(1) Where a shareholder in a designated corporation is not resident in Jamaica he shall be exempt
from income tax in respect of any dividend paid to him by that designated corporation out of income
exempt or relieved from tax pursuant to section 5.
(2) The provisions of the Income Tax Act relating to the deduction of income tax from dividends
to shareholders shall not apply to dividends exempt from income tax pursuant to subsection (1).
9. Transactions with persons resident in Jamaica
9.(1) A designated corporation may effect transactions relating to its domestic operations with
persons resident in Jamaica and may also, with th e prior approval of the Minister, effect other
business transactions with such persons (including approved investment activities).
(2) No person shall be deemed for the purposes of this Act to be a person resident in Jamaica by
reason only of the fact that he visits Jamaica from time to time for the purpose of attending meetings
of shareholders or directors of the designated co rporation; nor shall the period of any such visit be
taken into account in determining whether or not a person not ordinarily resident in Jamaica has
become so resident.
10. Exemption from Exchange Control Act
10.(1) Notwithstanding anything to the contrary in the Exchange Control Act, the provisions of that
Act shall not apply to a designated corporation in relation to -
(a) its foreign trade transactions; and(b) any dealings by the corporation in connection with the matters specified in paragraph
(a) of section 5 (2);
(c) any dealings by the corporation in connection with the matters specified in paragraph
(b) of section 5
(2) which conform with any terms and conditions specified pursuant to that section.
11. Free entry of machinery and equipment
11.(1) Every designated corporation shall be entitled to import into Jamaica any equipment,
machinery or materials free of customs duty, stamp duty and retail sales tax (hereinafter referred to ascustoms and similar duties) if the Commissioner of Customs and Excise is satisfied that such goods
are imported primarily for the purpose of providing facilities for the carrying out of foreign trade
transactions.G/SCM/Q3/JAM/8
Page 42
(2) Where a designated corporation purchases in Jamaica goods described in subsection (1)
which, pursuant to that subsection, may be imported free of customs and similar duties, there shall be
a waiver of any such duties, and of any consumption duty or excise duty, which the Commissioner of
Customs and Excise is satisfied have been paid, or, as the case may be, are payable in respect of those
goods.
12. Restrictions upon the disposal of goods imported or purchased free of customs and
similar duties
12. No goods imported into, or purchased in Jamaica by any designated corporation free of excise
duty, consumption duty or customs and similar duties under the provisions of this Act shall be sold,
given away or otherwise disposed of except -
(a) upon the designated corporation paying or giving security to the satisfaction of the
Commissioner of Customs and Excise for the payment of an amount equivalent to the
amount of excise duty, consumption duty,  customs and similar duties which would
have been payable upon the importation or purchase of such goods but for theprovisions of this Act; or
(b) after the expiration of three years from the date of the importation into, or, as the case
may be, purchase in, Jamaica of such goods.
13. Fees
13.(1) There shall be paid by a designated corporation fees in accordance with the provisions of the
Second Schedule.
(2) The Minister may by order amend the Second Schedule and any such order shall be subject to
affirmative resolution of the House of Representatives.
14. Exemption from income tax of investment in foreign currency
14.(1) Subject to the provisions of this section, where the income in foreign currency of a designated
corporation is invested in prescribed investment for a minimum period of five years, there shall beexempt from income tax the income arising from those investments.
(2) Where a designated corporation terminates a prescribed investment within five years from the
end of the year of assessment in which that investment was made, such corporation shall not be
entitled to any relief under subsection (1).
(3) In this section "prescribed investments" means such investments as the Minister may from
time to time, by order, prescribe.
15. Regulations
15.(1) The Minister may make regulations generally for the better carrying out of the purposes of
this Act and in particular but without prejudice to the generality of the fore going may make
regulations -
(a) providing for returns to be submitted and information to be furnished for the purpose
of an application for a certificate;G/SCM/Q3/JAM/8
Page 43
(b) prescribing records to be kept and the returns to be furnished by designated
corporations;
(c) amending the First Schedule;
(d) prescribing other matters required by this Act to be prescribed.
(2) Regulations made under subsection (1) (c) shall be subject to affirmative resolution.
FIRST SCHEDULE (Section 2)
Scheduled State /Relevant Legislation
United States of America including the Common wealth of Puerto Rico.
The Deficit Reduction Act of 1984.
SECOND SCHEDULE (Section 13)
1. The fees payable pursuant to section 13 shall be paid by each designated corporation -
(a) initially, on the date on which the certificate is granted under section 3;(b) thereafter, on or before the 1st day of January in each subsequent year;
(c) at the rate set out in paragraph 2.
2.(1) Where the designated corporation has elected pursuant to the relevant legislation to be treated
as a small foreign sales corporation in the scheduled state:  US$ 500 per annum
(2) In any other case:  US$1,000 per annumG/SCM/Q3/JAM/8
Page 44
INDUSTRIAL INCENTIVES (FACTORY CONSTRUCTION) ACT
Regulation
ARRANGEMENT OF SECTIONS
Laws 9 of 1961 | 30 of 1961 | Acts 23 of 1972 S. 3 (2) (b) | 12 of 1985 Sch. | 7 of 1990 S. 19 | 16 of 1991 S. 64
PART I.  General
1. Short title
2. Interpretation
3. Approved builder may construct factory
4. Power of Minister to grant or revoke licences
5. Transfer of rights and obligations on sale of factory6. Grant of licences to Jamaica Promotions Corporation
7. Applications for licence
PART II.  Tax Concessions
Customs Duties and General Consumption Tax
8. Free entry of articles for factory construction
9. Articles for factory construction not to be used for any other purpose
10. Power of Minister to permit disposal of articles for factory construction11. Restriction of relief from customs duties and tax
Income Tax12. Relief from income tax
13. Dividends
PART III.  Miscellaneous
14. Restriction of use of factory
15. Power to grant new lease of factory
16. Regulations
First Schedule (Section 2)
Second Schedule (Section 2)
1. Short title
1. This Act may be cited as the Industrial Incentives (Factory Construction) Act.
2. Interpretation
2. In this Act, unless the contrary intention appears -
"approved builder" means a company which holds a licence;"articles for factory construction" means any of the articles specified in the First Schedule;G/SCM/Q3/JAM/8
Page 45
"company" means any company incorporated or regist ered under any enactment in force in the Island
or any company which, though incorporated or registered outside the Island, carries on business or has
an office or place of business therein;
"factory" in relation to -
(a) an approved enterprise under the Industrial Incentives Act, means any such factory
premises as are referred to in section 4 of that Act;
(b) an approved export manufacturer under the Export Industry Encouragement Act, has
the meaning assigned to it by section 2 of that Act;
"licence" means a licence granted under this Act and includes a licence transferred by virtue of
section 5;
"recognized enterprise" means -
(a) an approved enterprise under the Industrial Incentives Act; or
(b) an approved export manufacturer under the Export Industry Encouragement Act;
"relevant statutory period" means the period commencing on the date determined by the Minister to
be the date of completion of the construction of the relevant factory by an approved builder and
ending fifteen years after the first day of January next following such date of completion;
"scheduled enactments" means the enactments set out in the Second Schedule.
3. Approved builder may construct factory
3.(1) Notwithstanding anything to the contrary, where under any of the scheduled enactments a
recognized enterprise is required to establish a factory it shall be lawful, subject to the provisions of
this Act, for such factory to be constructed by an approved builder instead of by the said enterprise.
(2) Where pursuant to subsection (1) a factory is being constructed by an approved builder, such
construction shall, subject to the provisions of this Act, be carried out as if it were being carried out by
the recognized enterprise concerned, and subject as aforesaid, the provisions of the relevant scheduled
enactment shall apply to the construction of th e factory as they would have applied if such
construction were being carried out by the recognized enterprise concerned.
4. Power of Minister to grant or revoke licences
4.(1) The Minister may grant a licence to a company in respect of the construction of a factory
under this Act he is satisfied that -
(a) the company is able to finance the construction of the factory; and
(b) the company has entered into an agreemen t with the recognized enterprise concerned
for the lease of the factory for a period of at least five years.
(2) Every licence shall be subject to such conditions as the Minister in his discretion may specify
therein, so, however, that the licence shall as a condition require the company to retain ownership of
the factory during the relevant statutory period unless at some time during that period the company -G/SCM/Q3/JAM/8
Page 46
(a) sells the factory to the recognized enterpri se referred to in paragraph (b) of subsection
(1) or to any other recognized enterprise; or
(b) with the approval of the Minister sell s the factory to a company to which upon the
sale being effected the provisions of subsection (1) of section 5 will apply; or
(c) with the approval of the Minister and subject to such terms as he may then specify
sells the factory to some person other th an a recognized enterprise or a company
referred to in paragraph (b), but there shall be no such sale of the factory until the
Minister is satisfied that a sale thereof under paragraph (a) or paragraph (b) cannot be
effected.
(3) Where it appears to the Minister that a company holding a licence has contravened any of the
conditions specified in such licence or any of the provisions of this Act or the regulations made
thereunder, he shall serve upon the company a notice requiring it within such reasonable time not
being less than fourteen days, as may be specified in the notice, to do all such things as will make
good to the satisfaction of the Minister any default or deficiency arising by way of the contravention.
(4) If a company fails to comply with a notice served under subsection (3) then, after the
expiration of the time specified in the notice, the Mi nister may revoke the licence of the company, in
which event -
(a) the company shall pay the tax concessions it received since the date of the receipt by
the company of the notice aforesaid; and in addition thereto,
(b) if the contravention is the sale of the factory (whether the factory has been completed
or not) in breach of subsection (2) the company shall pay to the Commissioner ofCustoms and Excise a sum which bears the same proportion to the total amount of the
import duty granted to the company in respect of that factory as the unexpired portion
of the relevant statutory period at the date of the receipt of the notice by the company
bears to the whole relevant statutory period.
5. Transfer of rights and obligations on sale of factory
5.(1) Subject to the provisions of subsection (2), where by virtue of the provisions in a licence the
factory to which such licence relates is sold by  the company holding the licence the purchaser shall
from the date of such sale and in place of the company -
(a) be deemed to be the approved builder w ithin the meaning of this Act with respect to
such factory and the licence granted by the Minister under subsection (1) of section 4
or under section 6, as the case may be, shall accordingly be transferred to such
purchaser in the prescribed manner; and
(b) as respects matters arising after such sale  be entitled to all the rights and privileges
conferred, and be subject to all the ob ligations and liabi lities impos ed, upon an
approved builder by the provisions of the licence and of this Act and the regulations
made thereunder.
(2) Subsection (1) shall not have effect where the purchaser -
(a) is not a company; or(b) is a recognized enterprise; orG/SCM/Q3/JAM/8
Page 47
(c) is a manufacturer acquiring the factory for use in his business,
and in that event the provision of this Act shall cea se to apply to the factory after the sale except as
respects any terms which the Minister may in accordance with paragraph (c) of subsection (2) ofsection 4 have specified in relation to the sale.
6. Grant of licences to Jamaica Promotions Corporation
6.(1) Notwithstanding anything to the contrary -
(a) the Minister shall grant to the Jamaica Promotions Corporation established under
section 3 of the Jamaica Promotions Corporation Act (which for the purposes of this
section shall be regarded as a company with in the meaning of this Act) a licence in
respect of any factory to which this section applies and the Corporation shall be
deemed, subject to paragraph (b), to be the approved builder in relation to any such
factory;
(b) a licence granted by virtue of this section shall be in accordance with the provisions
of subsection (2) of section 4 and upon a sale by the Corporation of the factory to
which a licence relates -
(i) the relevant statutory period as respects the factory shall be deemed to
commence at the date of such sale and to expire at the end of fifteen years
after the first day of January next following either the date of the sale or the
date of the completion of the construction of the factory, whichever is later;
and
(ii) the provisions of section 5 shall have effect.
(2) This section applies to any factory which the Minister may by notice published in the Gazette
declare to be a factory built by the Jamaica Promotions Corporation and in respect of which he
considers it expedient that the Corporation should be deemed to be an approved builder.
(3) In this section the expression "factory" includes a factory in the process of construction.
7. Applications for licence
7. All applications for the grant of a licence shall be addressed to the Minister and be in such
form and contain such particulars as may be prescribed.
8. Free entry of articles for factory construction
8.(1) Subject to the provisions of subsection (2) an approved builder shall be entitled upon the
production of its licence to the proper Customs Officer to import into the Island in accordance with
the terms thereof free of all customs duties and general consumption tax articles of factory
construction, if the approved builder satisfies the Commissioner of Customs and Excise that such
articles are imported for the construction of the factory.
(2) The concession granted to the approved builder in subsection (1) shall not have effect as
respects articles of factory construction in relation to which the Minister, from time to time, by reason
of the fact that corresponding articles of local manufacture are available for purchase in the Island,
notifies the Commissioner of Customs and Exci se that the subsection should not apply.G/SCM/Q3/JAM/8
Page 48
9. Articles for factory construction not to be used for any other purpose
9.(1) Subject to the provisions of section 10, where any articles for factory construction have been
imported into the Island under a licence, such articles shall not be sold, exchanged, given away,exported from the Island or applied for any purpose other than use in connection with the construction
of the factory concerned.
(2) Every person who contravenes subsection (1) shall be guilty of an offence and on summary
conviction thereof before a Resident Magistrate shall be liable to a fine not exceeding one thousand
dollars or to be imprisoned for any term not exce eding twelve months or to both such fine and
imprisonment.
10. Power of Minister to permit disposal of articles for factory construction
10.(1) Where the Minister is satisfied that any articles for factory construction which have been
imported into the Island under section 8 are no longer required for the purpose of constructing thefactory in respect of which the licence was granted, he may grant a permit to the approved builder to
dispose of such articles in such manner as the Minister thinks fit.
(2) No permit shall be granted under subsection (1) until the approved builder has paid to the
Commissioner of Customs and Excise or has given se curity to the satisfaction of the Commissioner of
Customs and Excise, that it will so pay all sums which but for the exemption given in section 8 would
have been payable by way of customs duties and general consumption tax upon the importation of
such articles for factory construction.
11. Restriction of relief from customs duties and tax
11. Notwithstanding anything to the contrary in any enactment there shall not be exempted from
the payment of customs duties or general consumption tax articles imported for the purpose of
effecting repairs to a factory which was constructed by an approved builder or any extension thereof,
or to any apparatus, machinery, tools, appliance or equipment contained in the factory or any
extension thereof or for replacing any apparatus, machinery, tools, appliance or equipment in the
factory or any extension thereof, so, however, that the provisions of this section in so far as they relate
to apparatus, machinery, tools, appliance or equi pment shall not affect or in any way prejudice the
operation of section 13 of the Export Industry Encouragement Act.
12. Relief from income tax
12.(1) A company which holds a licence shall, in re spect of income obtained from the lease or other
letting of the factory to which the licence relates, be entitled in each year during the relevant statutory
period to relief from income tax; and where in accordance with the provisions of its licence the
company sells the factory and would but for the provisions of this section be liable to the payment of
income tax on the profits of the sale, it shall be en titled to relief from income tax as respects such
profits except where as a term of the sale under paragraph (c) of subsection (2) of section 4, the
Minister otherwise specifies.
(2) After the expiration of the relevant statutory period annual allowances may be made upon the
value of the factory
(3) If in selling a factory in accordance with the provisions of its licence a company accepts a
mortgage on the factory, it shall, in respect of income obtained as interest on the mortgage debt be
entitled during each year until the relevant statutory period expires to relief from income tax.G/SCM/Q3/JAM/8
Page 49
(4) In this section -
"annual allowances" has the same meaning as in the Income Tax Act;
"income tax" means the tax including company profits tax payable by companies under the law for the
time being relating to income tax;
"value of the factory" means the original cost of the construction of the factory less a sum equivalent
to the aggregate of all the annual allowances which could have been made in respect of the factory
during the relevant statutory period.
13. Dividends
13.(1) During the relevant statutory period an approv ed builder shall place in a separate account all
profits or gains which have been relieved of income tax in accordance with the provisions of
section 12, and, if it intends to pay a dividend to its shareholders out of the said profits or gains, suchdividend shall be paid out of such account.
(2) Unless, pursuant to the first proviso to section 37 of the Income Tax Act, the Commissioner
of Taxpayer Audit and Assessment otherwise aut horizes, income tax shall be deducted by an
approved builder which pays any dividend as if such dividend had been paid out of profits or gainswithin the meaning of the provisions of the law relating to income tax with respect to the deduction of
tax by a company on the payment of a dividend by that company:
Provided that where income tax is being deducted in the case of any dividend payable to a
shareholder who is not resident in the Island the rate shall be either -
(a) twenty-five cents in the two dollars; or(b) if ascertained at the date when the deduction is being made, the rate at which the
shareholder should be assessed having regard to the provisions of subsection (4),
whichever is less.
(3) An approved builder making deductions of income tax pursuant to subsection (2) shall be
deemed to be collecting income tax on behalf of the Commissioner of Inland Revenue and shall pay to
the Commissioner of Inland Revenue or to such pe rson as he may direct the amounts so deducted.
(4) A shareholder to whom a dividend is paid pursuant to subsection (1) shall be exempt from
income tax in respect thereof if he is resident in the Island, and if he is not so resident he shall be
exempt -
(a) from income tax in respect thereof if he is not liable to income tax as respects that
dividend in the country in which he is resident; or
(b) if he is so liable, from so much of the income tax as respects that dividend as the
Commissioner of Taxpayer Audit and Assessment is satisfied exceeds his liability in
respect thereof in the country in which he is resident.
(5) Save as is otherwise provided in this Part the provisions of the law relating to income tax with
respect to the deduction of income tax from dividends and the refund of income tax to shareholders
shall apply to dividends paid by an approved builder pursuant to subsection (1).G/SCM/Q3/JAM/8
Page 50
(6) In this section -
"approved builder" includes a company which sells a factory in respect of which at the time of the sale
it held a licence such sale being in acco rdance with the provisions of the licence;
"dividend" includes interest paid to a debenture holder;
"shareholder" includes a debenture holder.(7) The exemption from income tax created by this section extends to company profits tax.
14. Restriction of use of factory
14.(1) Subject to the provisions of this Act a factory constructed under the provisions of section 3 or
in relation to which a declaration has been made by the Minister under subsection (2) of section 6
shall not without the prior approval of the Minister be used at any time during the relevant statutory
period for any purposes other than those of a recognized enterprise.
The grant of such approval shall be subject to such written conditions as the Minister may in
any particular circumstances think necessary.
(2) Any person using any such factory in contravention of the provisions of subsection (1) shall
be guilty of an offence and on summary conviction thereof before a Resident Magistrate shall be
liable to a fine not exceeding one thousand dollars and in default of payment to imprisonment for any
term not exceeding six months and in the case of a continuing offence to a further fine not exceeding
two hundred dollars in respect of each day during which the offence continues.
15. Power to grant new lease of factory
15.(1) Where pursuant to section 3 a factory has been constructed by an approved builder and the
recognized enterprise for which the factory was constructed, in breach of an agreement so to do, fails
to occupy it, or a factory (including a factory in relation to which a declaration has been made by the
Minister under subsection (2) of section 6) becomes vacant in any circumstances which in the opinion
of the Minister were beyond the control of the approved builder, then the approved builder shallsubject to the provisions of subsections (2) and (3) be entitled during the relevant statutory period to
grant a lease or other letting of the factory to a manufacturer for use in the business of such
manufacturer.
(2) The approved builder shall not be entitled to lease or let the factory as provided in subsection
(1) unless -
(a) forthwith upon the failure of the recognized enterprise to occupy it, or upon the
factory otherwise becoming vacant it endeavours to seek agreement with some other
recognized enterprise for a new lease or other letting of the factory and upon failureto secure such an agreement within ninety days notifies the Minister accordingly; and
(b) the Minister is unable within ninety days of such notification to propose a recognized
enterprise willing to accept a lease of the factory on terms and conditions which are
the same as those specified in the lease referred to in paragraph (b) of subsection (1)of section 4 except for such modifications as may be agreed between the Minister and
the approved builder.G/SCM/Q3/JAM/8
Page 51
(3) Where an approved builder is unable to obtain  agreement with a recognized enterprise for the
lease or other letting of the whole factory pursuant to paragraph (a) of subsection (2), it may, with the
approval of the Minister, enter into an agreement wi th such enterprise for a lease of a portion of the
factory, so, however, that the Minister may in respect of that portion of the factory which is not
subject to the agreement require the approved builder to fulfil such special conditions (whether similar
to the provisions of the said subsection (2) or not) in relation to the lease or other letting thereof as he
may think fit.
16. Regulations
16.(1) The Minister may make regulations with regard to -
(a) any matters required by this Act to be prescribed;
(b) the particulars to be furnished and the requirements to be fulfilled by a company
applying for a licence;
(c) any matter or thing connected with the construction under this Act of a factory and its
use by a recognized enterprise or other occupier;
(d) any other matter or thing (whether similar to the foregoing or not) in respect of which
it appears to him to be expedient to make regulations for the purpose of carrying thisAct into effect.
(2) Any regulations made under subsection (1) may provide in respect of the breach of any of the
provisions thereof that the offender shall be liable to a fine of one thousand dollars, or to such term of
imprisonment with hard labour not exceeding twelve months, or to both such fine and imprisonmentas may be therein prescribed.
FIRST SCHEDULE (Section 2)
All building materials, tools, plant, machinery,  pipes, pumps, locomotives, conveyor belts, or
other appliances and materials necessary for and used in the construction of the factory for thepurposes of the relevant recognized enterprise.
SECOND SCHEDULE (Section 2)
The Industrial Incentives Act.
The Export Industry Encouragement Act.
__________