WORLD TRADE
ORGANIZATIONG/SCM/N/74/MUS
16 January 2002
(02-0203)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Requests Pursuant to Article 27.4 of the Agreement
on Subsidies and Countervailing Measures
Requests Pursuant to the Procedure in Document G/SCM/39
MAURITIUS
The following communication, dated 19 December 2001, has been received from the
Permanent Mission of Mauritius.
_______________
Pursuant to paragraph 10.6 of the decision (WT/MIN(01)17) taken at the Fourth WTO
Ministerial Conference held in Doha from 9-14 November 2001, concerning the extension of thetransition period under Article 27.4 of the Agreement on Subsidies and Countervailing Measures
(ASCM) for certain developing countries and, in co nformity with the procedures set out in document
G/SCM/39, the Government of the Republic of Mauritius is hereby submitting a request for an
extension of the transition period under Article 27.4 of the ASCM for the identified programmes as
per the attached Annex I.  This extension is necessary for the economic, financial and development
needs of Mauritius.
The relevant legislation is also attached as Annexes II, III and IV respectively.  As would be
noted, not all elements of the legislation and programmes, including the parts dealing with the issue of
subsidies, would necessarily involve export subsidies.G/SCM/N/74/MUS
Page 2
ANNEX I
GENERAL DESCRIPTION OF THE SUBSIDY PROGRAMMES
The annexed documentation refers to laws pertaining to Export Enterprises, Freeport
Operators and Tax Credit for other exporting companies, namely the Industrial Expansion Act 1993,
the Freeport Act 2001, the Income Tax Act 1995 and other related tax legislation.
1. The Industrial Expansion Act 1993 (Part III - Export Enterprises and Part VII Pioneer
Status Enterprises) and related tax legislation
Export Enterprises and Pioneer Status Enterprises are eligible to:
(i) exemption from customs duty, excise duty and value added tax on scheduled
equipment under the Industrial Expansion Act 1993;
(ii) preferential rate of duty on the registration of any deed witnessing the purchase of
any immovable property under the registration Duty Act as amended in the Finance
Act 2001;  and
(iii) the incentive rate of corporate tax of 15 per cent under Parts II and IV of the First
Schedule to the Income Tax Act 1995.
2. The Freeport Act 2001 - (Section 27) and related tax legislation
Freeport operators, with particular reference to those engaged in minor processing, light
assembly and ship building, repairs and maintenance are eligible to:
(i) exemption from customs duty, excise duty and VAT on machinery and equipment
imported into the Freeport zone for the exclusive use of the freeport activities of the
operator;  and
(ii) exemption from corporate tax on the income derived from activities carried out in the
freeport zone under section 49 of the Income Tax Act 1995.
3. Income Tax Act 1995 (Sections 71 and 72) and Income Tax (Amendment No. 2)
Registrations 2000
Companies, other than tax incentive companies,  are eligible to tax credit for exports,
calculated on the basis of the percentage of qualifying export sales to their total turnover and limited
to such amount that would not reduce the tax payabl e to less than 15 per cent of chargeable income.G/SCM/N/74/MUS
Page 3
ANNEX I b
FINANCE ACT 2000 (Extract)
23. The Registration Duty Act amended
The Registration Duty Act is amended:
(a) in section 3, by inserting immediately after subsection (4), the following new
subsection (5), the existing subsection (5) being renumbered (6) accordingly:
(5) (a) Notwithstanding subsections (1) and (2), the duty leviable on
the registration of any deed witnessing the purchase of an
immovable property by a company of a type specified in the
Eighth Schedule shall be at the rate of 5 per cent.
(b) The surcharge leviable under the Finance Act 1981 shall not
apply to the duty leviable under this subsection.
EIGHTH SCHEDULE TO THE REGISTRATION DUTY ACT
(Section 3(5))
1. A company holding an export enterprise
certificate
2. A company holding a strategic local
enterprise certificate under the
Industrial
3. A company holding a modernization and Expansion Act
expansion enterprise certificate 1993
4. A company holding an industrial building
enterprise certificate
5. A company holding a pioneer status
certificate
6. A company holding a development certificate under the Development Incentives Act.7. A company holding a leisure development certificate issued by the Minister to whom
responsibility for the subject of leisure is assigned.G/SCM/N/74/MUS
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ANNEX I c
INCOME TAX ACT 1995 (FIR ST SCHEDULE - Extract)
PART II - TAX INCENTIVE COMPANIES
The rate of tax on chargeable income shall be 15 per cent.
PART IV - LIST OF TAX INCENTIVE COMPANIES
1. A company holding an investment certificate in respect of an export enterprise.
2. A company holding an investment certificate in respect of a strategic local enterprise.
3. A company holding an investment certificate in respect of modernization and expansion
enterprise other than a company engaged in the manufacture of excisable goods under the
Excise Act 1994.
4. A company holding an investment certificate in respect of an industrial building enterprise.5. A company holding an investment certificate in respect of a pioneer status enterprise.6. A company registered with the Small and Medium Industries Development Organization.
7. A company holding an export service certificate under the Export Service Zones Act 1981.
8. A company operating an aerodrome.9. A company holding an investment certificate in respect of hotel development under the
Investment Promotion Act 2000.
10. An investment trust company listed on the Stock Exchange or designated as an approved
investment institution under section 50A of the Stock Exchange Act 1988.
11. An authorized mutual fund under the Companies Act 1984.
12. A trustee of a unit trust scheme.
13. A company holding a housing development certificate issued by the Minister.14. A polyclinic holding an investment certificate in respect of health services under the
Investment Promotion Act 2000.
15. A manufacturing company
16. (a) A corporation holding a Category 1 Global Business Licence under the Financial
Services Development Act 2001
(b) A bank holding a Class B Bank ing Licence under the Banking Act 1998.
17. A society which opts to be liable to income tax under section 47(6).G/SCM/N/74/MUS
Page 5
18. A company engaged wholly in the management of:
(a) a venture capital fund;
(b) a company holding an investment certificate in respect of a strategic local enterprise
under the Investment Promotion Act 2000.
19. A venture capital fund.20. A bus company operating a bus or a fleet of buses and holding a road service licence in
respect of those buses.
21. A company engaged in the agro-based industry approved by the Minister of Agriculture and
Natural Resources.
22. A company deriving at least 75 per cent of its gross income from agriculture, fishery and
livestock.
23. A company whose main activity is to provide lease financing, as may be approved by the
Minister.
24. A company deriving at least 75 per cent of its gross income from the construction of
buildings, roads, bridges and dams.
25. A company holding a pioneer financial services certificate issued by the Minister.
26. A company holding a fishing development certificate issued by the Minister to whom
responsibility for the subject of fisheries is assigned.
27. A company holding a regional development certificate issued by the Minister to whom
responsibility for the subject of leisure is assigned.
28. A company holding a regional development certificate issued by the Minister to whom
responsibility for the subject of regional development is assigned.
29. A company engaged in the hotel industry.30. A company deriving at least 75 per cent of its gross income from software development,
hosting of web sites or multimedia development.
31. A company operating a duty free shop, other than a duty free shop at the port or airport,
under the Customs Act 1988.
32. A company approved by the Minister responsible for the subject of education or by the
Tertiary Education Commission established under the Tertiary Education Commission Act
1988, as a company engaged in the provision of secondary or tertiary education, as the case
may be.
33. A company holding a regional headquarters certificate issued by the Minister to whom
responsibility for the subject of industry is assigned and deriving at least 80 per cent of its
gross income from outside Mauritius.
34. A company operating as internet service provider or network service provider.G/SCM/N/74/MUS
Page 6
35. A company deriving at least 75 per cent of its gross income from the provision of training
and registered as such with the Industrial and Vocational Training Board.
36. A company duly licensed to carry on the business of restaurant.37. A company carrying on business as:
(a) tour operator;(b) scuba diving centre or helmet diving centre;
(c) cruise or boat house operator;
(d) big game fishing operator;and registered as such with the Ministry responsible for the subject of tourism.
38. A company set up to operate the Stock Exchange established under the Stock Exchange
Act 1988.
39. A company set up to provide a central depository, clearing and settlement service to the
Stock Exchange established under the Stock Exchange Act 1988.
40. A company holding a management licence under the Financial Services Development
Act 2001.G/SCM/N/74/MUS
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ANNEX II b
INCOME TAX ACT 1995 (Extract)
49. Companies in the freeport zone
(1) Subject to subsection (2), the income derived by a company licensed under the
Freeport Act 1992 shall be exempt from income tax.
(2) Where the company derives income from any activity outside the freeport zone:(a) it shall be liable to income tax on its char geable income in respect of that activity at
the rate specified in Part II or Part III of the First Schedule, as the case may be;  and
(b) its chargeable income shall be computed in such manner as may be prescribed.G/SCM/N/74/MUS
Page 8
ANNEX III a
INCOME TAX ACT 1995 (Extract)
71. Tax credit for exports
(1) Subject to subsection (2) and to section 72, every company, engaged in the export of
goods which are manufactured or produced in Mauritius or in the provision of services to a non-
resident, shall, in an income year, be allowed a tax credit by way of deduction from the income tax
otherwise payable by the company in that income year of such amount as may be prescribed.
(2) Subsection (1) shall not apply to a company which is a tax incentive company.
72. Limitation to tax credits
Where, in an income year, the amount of inco me tax otherwise payable by a company after
deducting the aggregate amount of tax credits specified in sections 69, 70 and 71:
(a) exceeds 15 per cent of its chargeable income, the aggregate amount of tax credits
shall be allowed as a deduction;  or
(b) does not exceed 15 per cent of its chargeable income, the aggregate amount of tax
credits shall be limited to such amount that would not reduce the tax payable after
deducting that amount to less than 15 per cent of the chargeable income of the
company.G/SCM/N/74/MUS
Page 9
ANNEX III b
INCOME TAX 1995 (AMENDMENT NO. 2) REGULATIONS 2000 (Extract)
21. Tax credit for exports
(1) For the purposes of section 71(1) of the Act, the tax credit to be allowed shall be an
amount equal to:
(a) 15 per cent of the income tax payable by the company where the percentage of
qualifying export sales to total turnover is 10 per cent or over but not exceeding
30 per cent;
(b) 25 per cent of the income tax payable by the company where the percentage of
qualifying export sales to total turnover is over 30 per cent but not exceeding 50 percent;  and
(c) 40 per cent of the income tax payable by the company where the percentage of
qualifying export sales to total turnover is over 50 per cent.
(2) For the purposes of paragraph (1), qualifying export sales shall be calculated on the
basis of the rupee equivalent of the amount remitted to the company at the rate obtaining when the
money was actually converted into Mauritius currency.
(3) In determining the percentage of qualifying export sales to total turnover of a
company, the numerator shall be the total of the rupee equivalent of the qualifying export sales of that
company actually converted into Mauritius currency and certified by a bank and the denominator shall
be the total turnover of that company.
(4) In this regulation:"bank" has the same meaning as in the Banking Act 1988;"gross income" shall be deemed to include:(a) where a company receives goods on consignment, the gross proceeds realized from
the sale of the goods received on consignment;
(b) where a company sells goods on consignment, and gross proceeds realized from the
sale of the goods consigned by that company inclusive of the commission payable in
respect of that sale;  and
(c) where a company derives income from the provision of services, the gross amount
receivable without any deduction;
"qualifying export sales" means the proceeds derived from the export of goods, other than
tea, sugar or a by-product of sugar, manufactured or produced locally, or from the provisionof services outside Mauritius;
"total turnover" shall be deemed to include the aggregate of the gross income of the
company from whatever source derived, inclusive of qualifying export sales and as certified
by a qualified auditor.G/SCM/N/74/MUS
Page 10
ANNEX II
INDUSTRIAL EXPANSION*
Act 11 of 1993 - June and July 1993
*  Ed.  This Act is reproduced as amended by section 29(3) of Act 42/00 which was brought into
operation on 15 March 2001.
ARRANGEMENT OF SECTIONS
PART I - INTRODUCTION PART VI - INDUSTRIAL BUILDING
ENTERPRISES
1 Short title 27 Interpretation2 Interpretation 28 -
PART II - ADMINISTRATION 29 Restriction on letting
3 Application for investments 30 Restriction on other activity
4-6 - 31 Derogation
7 Power of entry and power to require
informationPART VII - PIONEER STATUS
ENTERPRISES
8 - 32 Interpretation
9 Promotion of quality 33 -
10 Industrial Council 34 Exemption from duty and tax
PART III - EXPORT ENTERPRISES 35 Removal of products, scheduled
equipment and scheduled materials
11 Interpretation 36 Payment of duty and tax12 Export processing zones PART VIII - SMALL AND MEDIUM
ENTERPRISES
13 Bonded factories 37 Interpretation14 Export products 38 Registration and issue of certificate15 - 39 Exemption from duty and tax16 Restriction on trading 39A Savings17 Exemption from duty and tax PART IX - MISCELLANEOUS
18 Removal of scheduled equipment,
scheduled materials and export products40 Regulations
19 Payment of duty and tax 41 Offences and penalties
20 Employment and labour provisions 42 Jurisdiction21 Saving clause 43-46 -
PART IV -  STRATEGIC LOCAL
ENTERPRISESFIRST SCHEDULE
SECOND SCHEDULETHIRD SCHEDULEFOURTH SCHEDULE
22 Interpretation23 -
PART V - MODERNIZATION AND
EXPANSION ENTERPRISES
24 Interpretation25 -26 Exemption from duty
_______________G/SCM/N/74/MUS
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PART I - INTRODUCTION
1. Short title
This Act may be cited as the Industrial Expansion Act.
2. Interpretation
In this Act -
"adequate security" means security which has been  accepted as adequate by the Comptroller
for the purposes of section 17;
"authorized officer" means an officer of the Ministry responsible for the subject of industry or
a Customs and Excise Officer designated in writing by the Minister or the Minister
responsible for the subject of finance, as the case may be;
Board of Investment" means the Board of Investment established under the Investment
Promotion Act;
"bonded factory" means a factory situated in an export processing zone;"Commissioner" means the Commissioner of Income Tax;"company" means a company which is incorporated under the Companies Act;
"Comptroller" means the Comptroller of Customs;
"Council" means the Industrial Council established under section 10;"Director" means the Director of the Small and Medium Industries Development
Organization;
"duty" has the same meaning as in the Customs Act;
"enterprise" means an export enterprise, a strategic local enterprise, a modernization and
expansion enterprise, an industrial building enterprise, a pioneer status enterprise or a small
and medium enterprise, as the case may be;
"excise duty" means the excise duty chargeable under the Excise Act on the excisable goods
specified in Part I of the First Schedule to that Act;
"export" has the same meaning as in the Customs Act;"export enterprise" means an export enterprise which has been granted a certificate under
section 15;  See note under Heading.
"export processing zone" means any area or building declared to be an export processing zone
under section 12;
"export product" means a product or produce in respect of which a declaration has been made
under section 14;G/SCM/N/74/MUS
Page 12
"import" has the same meaning as in the Customs Act;
"investment certificate" means an investment certificate issued under the Investment
Promotion Act;
"manufacture" means:
(a) a process whereby a finished article falls to be classified under a main heading
specified in Part I of the First Schedule to the Customs Tariff Act, which is different
from the main heading under which the materials or components used in the process
fall to be classified and includes:
(i) the production of any article by the process of mechanical or chemical
transformation of any inorganic or  organic substance, whether such
transformation is carried out by power driven machinery or by manual
labour;
(ii) the making, processing, altering, repairing, ornamenting, re-cycling,
finishing, breaking up, or demolition of any article;  and
(iii) the assembly of component parts of manufactured products;  and
(b) any prescribed specific process or any other prescribed process which results in a
specified percentage of value being added to the materials or components used;
"Mauricert" has the same meaning as in the Mauritius Standards Bureau Act;
"Minister" means the Minister to whom responsibility for the subject of industry is assigned;
"national laboratory accreditation system" has the same meaning as in the Mauritius
Standards Bureau Act;
"national quality system certification scheme" has the same meaning as in the Mauritius
Standards Bureau Act;
"production day" means the date specified in an export enterprise certificate, a strategic local
enterprise certificate or a pioneer status enterprise certificate, as the case may be;
"proposed company" means a company in respect of which a certificate is sought;"purchase" means the purchase of dutiable goods ex-bond, whether the goods have been
imported or have been locally produced or manufactured;
"scheduled equipment" means any equipment, m achinery, or spare parts used for the purpose
of production and approved by the Minister;
"scheduled materials" means any materials used for the purpose of production and approved
by the Minister.
"VAT" means the tax leviable under the Value Added Tax Act.
[Amended 25/94;  2/98;  42/00]G/SCM/N/74/MUS
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PART II - ADMINISTRATION
3. Application for investments
(1) Subject to this section, every application for investment in any sector or industry
regulated by this Act shall be made in accordance with the Investment Promotion Act.
(2) Where an application has been made pursuant to subsection (1), the Investment
Promotion Act shall be construed with such modifications, adaptations, qualifications and exceptions
as may be necessary to bring them into conformity with this act.
(3) This section shall not apply to a small and medium enterprise.
4.-6. -
7. Power of entry and power to require information
(1) Any authorized officer may, at all reasonable times and, if so required, on showing
proof of his identity, enter the premises of an enterp rise for the purpose of ensuring that the provisions
of this Act, other than section 20, and the regulations made thereunder are being complied with.
(2) Any authorized officer may require any person who is a director, secretary or other
officer of an enterprise to furnish him with any information touching the business or activities of the
enterprise.
(3) An enterprise shall furnish, on request, to the Minister or the Director, as the case may
be, any information relating to the activities specified in its certificate.
8. -
9. Promotion of quality
Where standards have been established by the Mauritius Standards Bureau for products
manufactured by an enterprise, the Minister may require the enterprise to manufacture such productsaccording to such standards or to apply for the Ma uritius Standards Bureau certification mark licence.
10. Industrial Council
(1) There is established an Industrial Council which shall advise the Minister on:
(a) the provision of an appropriate incentive framework for the accelerated modernization
and expansion of the industrial sector;
(b) the promotion of:
(i) an export-oriented strategy;
(ii) foreign direct investment and transfer of technology;
(iii) capital intensive industrialization;
(iv) the development of environmentally friendly industries;(v) the establishment of specialized technical services for the manufacturing
sector;
(vi) technological modernization and advancement;  and
(vii) the economic expansion of the country generally;G/SCM/N/74/MUS
Page 14
(c) the provision of means to facilitate the integration of different sectors and subsectors;
(d) the widening and diversifying of the industrial base;(e) the upgrading and promotion of the development of the small and medium enterprises
sector;  and
(f) the improvement of quality and international competitiveness of Mauritian products.(2) The Council shall consist of:(a) a Chairman, who shall be appointed by the Minister;
(b) the Financial Secretary or his representative;
(c) the Permanent Secretary of the Ministry responsible for the subject of industry or his
representative;
(d) the Director of the Ministry responsible for the subject of economic planning or his
representative;
(e) the Permanent Secretary, Ministry responsible for the subject of environment or his
representative;
(f) the Director of the Mauritius Standards Bureau or his representative;
(g) the Director of the Mauritius Industrial Development Authority or his representative;
(h) the Director of the Export Processi ng Zones Development Authority or his
representative;
(i) the Director of the Small and Medium Industries Development Organization or his
representative;
(j) a representative of the Mauritius Chamber of Commerce and Industry;
(k) a representative of the Mauritius Export Processing Zone Association;(l) a representative of small and medium enterprises;
(m) six other members being persons who have special knowledge and proven ability in
the field of industry, trade, science or technology;
(3) The members specified at subsections (2)(l) and (m) shall be appointed by the
Minister.
(4) The members of the Council appointed under subsection (3) shall hold office for a
period of 2 years and shall be eligible for re-appointment.
(5) No person appointed under subsection (3) shall be deemed to be a public officer by
virtue of his appointment.
(6) (a) The Council shall meet at such time and place, being not less than once every
three months, as the Chairman may decide.
(b) The Council shall regulate its meetin gs and proceedings as it thinks fit.
(7) The members of the council shall be paid such allowances as the Minister may
determine.G/SCM/N/74/MUS
Page 15
PART III - EXPORT ENTERPRISES
11. Interpretation
For the purposes of this Part:
"employee" means any person employed by an export enterprise;"normal day" means a day of 8, or, by agreement between the employer and the employee, 9
hours actual work;
"woman" means a female employee who has attained the age of 18.
12. Export processing zones
The Minister may, on the recommendation of the Board of Investment, and with the object
of attracting, promoting or increasing the manufacture and export of products, designate:
(a) any area of land on which a factory has been, is being, or is likely to be built;
(b) any factory;
(c) any area of land which immediately surrounds a factory or the plot on which a factory
is being or is likely to be built,
to be an export processing zone.
13. Bonded factories
No person shall:
(a) manufacture, pack, unpack, or store goods or carry on any other activity of a
commercial or industrial nature in an export processing zone otherwise than in a
bonded factory;  and
(b) except in the case of an enterprise involv ed in export activities, establish, maintain or
operate a bonded factory, in an export processing zone.
14. Export products
Where an application in the prescribed form is made to that effect by a company, the
Minister may, where he considers it expedient in the public interest, declare any manufactured article,
substance, matter or other thing or the produce of deep sea fishing (including fresh or frozen fish) to
be an export product.
15. -
16. Restriction on trading
No export enterprise shall, during its tax relief period, carry on any trade or business other
than in relation to the export product specified in its certificate.G/SCM/N/74/MUS
Page 16
17. Exemption from duty and tax
(1) Notwithstanding any other enactment, and subject to sections 18 and 19, where an
export enterprise imports or purchases any dutiable goods to be used in a bonded factory, no duty,
excise duty or VAT shall be paid on them if they are, subject to such conditions as the Comptrollermay approve, transported directly and forthwith to a bonded factory and placed there under conditions
of adequate security.
(2) The Comptroller may require an export enterprise to enter into a bond in the
prescribed form, in such amount as he may determine, whereby the export enterprise undertakes to
obtain, receive, keep, use, or dispose of scheduled equipment or scheduled materials only in
conformity with this act, or any regulations made thereunder, or any conditions specified in itscertificate.
[Amended 25/94;  9/97;  2/98]
18. Removal of scheduled equipment, scheduled materials and export products
(1) No scheduled equipment shall be removed from a bonded factory except with the
written authorization of the Comptroller.
(2) No scheduled materials or export product shall be removed from a bonded factory
except:
(a) for the purpose of being exported;
(b) for transfer to another bonded factory,  with the permission and according to the
directions of the Comptroller;
(c) for disposal in Mauritius with the approval of the Minister, and subject to the payment
of duty, excise duty, or VAT as the case may be, and on such terms and conditions as
may be prescribed;  or
(d) for destruction in such manner as the Comptroller may direct.
(3) Any person who, without lawful authority or reasonable excuse:(a) removes any scheduled equipment, scheduled materials, or export product from a
bonded factory;  or
(b) is found in possession of any scheduled equipment, scheduled materials or export
product outside a bonded factory,
shall commit an offence.
[Amended 25/94;  9/97;  2/98]
19. Payment of duty and tax
(1) (a) Where there is, in any bonded factory, a deficiency in the quantity of dutiable
scheduled equipment or scheduled materials which ought to be found therein,
the enterprise shall, without prejudice to any other proceedings under this Act,
be liable to pay to the Comptroller the duty, excise duty, or VAT, as the case
may be, leviable on the goods not satisfactorily accounted for;
(b) Where the Comptroller is satisfied that the deficiency has been caused by
reasonable wastage or unavoidable breakage, leakage, or other accident, he
may remit the whole or any part of the duty, excise duty, or VAT, as the case
may be, leviable on the goods found deficient.G/SCM/N/74/MUS
Page 17
(2) An enterprise shall be required, by written notice, to pay any duty, excise duty, or
VAT, as the case may be, under this section, and the amount shall be paid within 30 days of the issue
of the notice.
(3) Appropriate duty, excise duty or VAT shall be payable to the Comptroller:
(a) on the closure of an enterprise;  and
(b) on the cancellation or revocation of a certificate.
[Amended 25/94;  9/97;  2/98]
20. Employment and labour provisions
(1) (a) Every employee shall be employed at not less than at a weekly rate of pay.
(b) For the purposes of determining the amount which may accrue to any
employee for overtime, for work performed on a public holiday, or for thegrant of paid leave, or the amount to be deducted in respect of absences, the
basic rate per hour shall be deemed to be one forty-fifth of the weekly basic
rate.
(2) (a) An employee may be required to work for more than the normal number of
hours on any day other than a public holiday provided he is not required to
work overtime for more than 10 hours per week, except with his consent.
(b) Overtime shall be paid to an employee where the number of hours of work
performed in a week exceeds 45 hours.
(c) The number of hours on which an employee is on annual leave shall be
reckoned in the computation of overtime.
(3) (a) An employee may be required to work on a public holiday.
(b) Where an employee performs not less than a normal day's work on a public
holiday the employer may, in respect of the normal day's work, instead of
paying the employee at double rate, pay him at the normal rate and grant him
one day off duty, with a normal day's pay, in the following week.
(4) An employee shall not be allowed or required to work for more than 7 consecutive
days.
(5) A woman who has had 3 confinements shall, if she is pregnant again, be entitled to
maternity leave without pay, but shall not be entitled to any maternity allowance.
(6) A woman may be required to work between 10 p.m. and 5 a.m., but shall not be
required to resume work before a lapse of 12 hours.
(7) (a) Where the services of an employee are terminated he shall be entitled to
receive compensation which shall be equivalent to:
(i) where he reckons more than 12 months, but less than 3 years'
continuous service with an employer, not less than one week's wages
for each year of service;G/SCM/N/74/MUS
Page 18
(ii) where he reckons not less than 3 years' continuous service with an
employer, not less than 2 weeks' wages for each year of service.
(b) Notwithstanding paragraph (a), no compensation shall be payable in any case
of dismissal on grounds of serious misc onduct where the employer could not
in good faith be expected to adopt any other course than to dismiss the
employee.
(8) Part VI of the Labour Act shall not apply to any contract of employment between an
employee and his employer except in a case of unjustified dismissal.
21. Saving clause
This Part shall have effect notwithstanding any enactment specified in the First Schedule
and, except as otherwise expressly provided, nothing in this Part shall affect the operation of those
enactments.
PART IV - STRATEGIC LOCAL ENTERPRISES
22. Interpretation
For the purposes of this Part:
"product" means a product in respect of which a strategic local enterprise certificate has
been issued and includes its by-product;
"strategic local enterprise" means a local industry which manufactures for the local market
and which is likely to promote and enhance the economic, industrial, and technological
development of Mauritius as a whole.
PART V - MODERNIZATION AND EXPANSION ENTERPRISES
24. Interpretation
For the purposes of this Part:
"operating day" means the date specified in the modernization and expansion enterprise
certificate and indicating the date on which new machinery and plant shall be operative;
"qualifying activity" means an activity specified in the Second Schedule:
(a) likely to:
(i) enhance the economic or technological development of Mauritius;
(ii) substantially increase the volume of that activity;
(iii) substantially diversify its production range;
(b) introducing anti-pollution technology for the protection of the environment.
25. -G/SCM/N/74/MUS
Page 19
26. Exemption from duty
(1) No duty or excise duty shall be payable by an enterprise on scheduled equipment to
be imported subject to such conditions as the Comptroller may approve.
(2) The Comptroller may require an enterprise which has been granted a certificate under
this part to enter into a bond in the prescribed fo rm in such amount as he may determine whereby the
enterprise undertakes to obtain, receive, keep, use, or dispose of scheduled equipment only in
conformity with this Act, or any regulations made thereunder, or with any conditions specified in the
certificate.
[Amended 9/97]
PART VI - INDUSTRIAL BUILDING ENTERPRISES
27. Interpretation
For the purposes of this Part:
"industrial building":(a) means a building or a level of a building with a floor space of not less than
1,000 square metres constructed and intended for use exclusively or primarily by amanufacturing enterprise;  and
(b) includes such construction operations as site restoration, landscaping, provision of
drains, roadways and other access works;
"industrial building enterprise" means a company in respect of which a certificate under this
Part is in operation;
"manufacturing enterprise":(a) means an enterprise which is engaged in the manufacture or processing of goods or
materials;  and
(b) does not include an enterprise which is engaged in the milling of sugar;"operating day" means a day approved by the minister as the day on which the industrial
building is first let.
28. -
29. Restriction on letting
(1) No industrial building enterprise shall let an industrial building to any person other
than the holder of a certificate under this Act or a manufacturing enterprise.
(2) In this section, "certificate" does not include an industrial building enterprise
certificate.
30. Restriction on other activity
No industrial building enterprise shall engage in any activity other than the construction of
an industrial building for letting.G/SCM/N/74/MUS
Page 20
31. Derogation
The Landlord and Tenant Act shall not apply to an industrial building which is let by an
industrial building enterprise.
PART VII - PIONEER STATUS ENTERPRISES
32. Interpretation
For the purposes of this Part:
"qualifying activity" means an activity involv ing the application of high technology and
specified in the Third Schedule.
33. -
34. Exemption from duty and tax
(1) Subject to section 36, where an enterprise imports any scheduled equipment and
scheduled materials to be used by the enterprise, no duty, excise duty, or VAT shall be paid on them
subject to such conditions as the Comptroller may approve.
(2) The Comptroller may require an enterprise to enter into a bond in the prescribed form,
in such amount as he may determine, whereby the enterprise undertakes to obtain, receive, keep, use,
or dispose of scheduled equipment and scheduled mate rials only in conformity with this Act, or any
regulations made thereunder, or any conditions specified in its certificate.
[Amended 25/94;  9/97;  2/98]
35. Removal of products, scheduled equipment and scheduled materials
(1) No products, by-products or scheduled equipment shall be removed from the premises
of the enterprise except with the written authorization of the Comptroller.
(2) No scheduled materials shall be removed from the premises of the enterprise except:
(a) for the purpose of being exported or sold to another enterprise or sold on the local
market with the authorization of the Minister;
(b) for transfer to another place, with the permission and according to the directions of
the Comptroller;  or
(c) for destruction in such manner as the Comptroller may direct.
(3) Any person who without lawful authority or reasonable excuse removes any
scheduled equipment and scheduled materials outside the premises of the enterprise shall commit an
offence.
36. Payment of duty and tax
(1) Where there is in any premises a deficiency in the quantity of dutiable scheduled
equipment or scheduled materials which ought to be found therein, the enterprise shall, without
prejudice to any other proceedings under this act, be liable to pay to the Comptroller the duty, excise
duty, or VAT leviable on the goods not satisfactorily accounted for.G/SCM/N/74/MUS
Page 21
(2) Where the Comptroller is satisfied that the deficiency has been caused by reasonable
wastage or unavoidable breakage, leakage, or other accident, he may remit the whole or any part of
the duty, excise duty or VAT leviable on the goods found deficient.
(3) An enterprise shall be required, by written notice, to pay any duty, excise duty, or
VAT under this section and the duty, excise duty, or VAT shall be paid within 30 days of the issue of
the notice.
(4) Appropriate duty, excise duty, or VAT shall be payable to the Comptroller:(a) where any scheduled equipment and scheduled materials are sold to persons other
than a company holding a pioneer status enterprise certificate;
(b) on closure of an enterprise;  and(c) on cancellation or revocation of a certificate.
[Amended 25/94;  9/97;  2/98]
PART VIII - SMALL AND MEDIUM ENTERPRISES
37. Interpretation
For the purposes of this Part:
"authorized officer" means an officer of the Small and Medium Industries Development
Organization designated in writing by the Director;
"small and medium enterprise" means an enterprise:(a) engaged in manufacturing;  and(b) using production equipment the aggregate c.i.f. value of which does not exceed
5,000,000 rupees or such other sum as may be prescribed;
"manufacturing":(a) means the transformation, for commercial purposes, of raw materials or semi-
processed materials into finished or semi-finished goods;  and
(b) includes the repair, packing, and assembly of inputs into finished or semi-finished
goods;
"owner" in relation to a small and medium enterprise means the owner of the enterprise
registered under this Act;
"production equipment" means machinery and equipment directly used in the process of
manufacturing;
"Small and Medium Industries Development Organization" means the Small and Medium
Industries Development Organization established under the Small and Medium Industries
Development Organization Act.G/SCM/N/74/MUS
Page 22
38. Registration and issue of certificate
(1) An applicant seeking the registration of a small and medium enterprise shall submit
an application to the Director.
(2) The Director shall, after consideration of an application under this Part, submit his
recommendation to the Minister.
(3) The Minister may, where he considers it expedient in the public interest to do so,
approve the application and register the enterprise by issuing a certificate in the prescribed form
subject to such terms and conditions as he thinks fit.
39. Exemption from duty
(1) Subject to this section, the owner of every enterprise registered under section 38 shall
be exempted from payment of duty or excise duty on any production equipment which he imports;
(2) No exemption shall be granted under this section unless the Minister is satisfied that
the production equipment is necessary and suitable for the operation of the enterprise in respect of
which it is imported.
(3) Where the owner of an enterprise wishes to dispose of the production equipment of
the enterprise, or any part of such equipment, within 4 years of any exemption granted under this
section, he shall give written notice to the Director of the proposed disposal and reasons justifying it.
(4) Where the Director is not satisfied that the proposed disposal of the production
equipment, or such part of it as may be indicated in the notice under subsection (3), is in the interestof the enterprise, he shall require the owner to pay to the Comptroller:
(a) the full amount of the duty or excise duty exempted, if the disposal is effected within
2 years of any application for exemption;  or
(b) half the amount of the duty or excise duty ex empted, if the disposal is effected outside
the period specified in paragraph (a).
(5) Where the Director is satisfied that the disposal of the production equipment is in the
interest of the enterprise, he may approve of its disposal on the condition that the purchaser, unless he
qualifies for an exemption from the payment of duty or excise duty, as the case may be, pays to the
Comptroller duty or excise duty calculated in acco rdance with the formula specified in the Fourth
Schedule.
(6) Where the registration of an industry has been revoked under section 5(2) on the
grounds that it has been obtained by fraud, the owner shall pay any duty or excise duty exempted
under this section.
[Amended 25/94;  9/97]
39A. Savings
Notwithstanding the repeal of sections 4-6, 8, 15, 23, 25, 28 and 33, those sections shall
remain in force and shall be construed in relation to a small and medium enterprise with such
modifications, adaptations, qualifications and exceptions as may be necessary to bring them into
conformity with the provisions of this Part.
[Added 42/00]G/SCM/N/74/MUS
Page 23
PART IX - MISCELLANEOUS
40. Regulations
(1) The Minister may make such regulations as he thinks fit for the purposes of this Act.
(2) The Minister may, by regulations, amend the Second, Third and Fourth Schedules.(3) The Minister may make such regulations as may be necessary for the proper
administration and implementation of:
(a) MAURICERT;  and
(b) -
(c) the National Quality System Certification Scheme.
[Amended 23/98]
41. Offences and penalties
(1) Any person who:
(a) contravenes this Act or any regulations made thereunder;
(b) in any application or declaration made for the purposes of this Act, makes a statement
which is false or misleading in any material particular;
(c) cannot account to the satisfaction of the Comptroller for any deficiency in relation to
the quantity of products, scheduled equipment, or scheduled materials;  or
(d) wilfully obstructs or hinders an authorized officer acting in the exercise of his
functions, or, without reasonable excuse, fails or refuses to give to an authorized
officer any information required of him,
shall commit an offence.
(2) Any person who commits an offence shall, on conviction:
(a) where the offence involves a shortfall of duty, excise duty, or VAT, be liable to a fine
equivalent to 3 times the value of duty, excise duty or VAT or 10,000 rupees,
whichever is the higher;  and
(b) in any other case, be liable to a fine not exceeding 10,000 rupees and to imprisonment
for a term not exceeding 2 years.
[Amended 25/94;  9/97]
42. Jurisdiction
Notwithstanding:
(a) section 114(2) of the Courts Act;  and
(b) section 72(5) of the District and Intermediate Courts (Criminal Jurisdiction) Act;
a Magistrate shall have jurisdiction to try any offence under this Act or any regulations made under it
and may impose any penalty provided by this Act.G/SCM/N/74/MUS
Page 24
43.-46. -
FIRST SCHEDULE
(Section 21)
Companies Act
Customs Act
Customs Tariff Act
Income Tax Act
Industrial Relations ActLabour Act
Town and Country Planning Act
SECOND SCHEDULE
(Sections 24 and 25)
Modernization and Expansion Activities
(1) Investment in production machinery and equipment, including the following:
(a) computer applications to industrial design, manufacture, maintenance
(CAD/CAM) and automation;
(b) automation, equipment and systems;(c) rationalization and automation of production equipment;  and(d) new industrial processes and technology.
(2) Investment in anti-pollution and environment protection technology to be made
within 2 years from the date of issue of certificate.
THIRD SCHEDULE
(Sections 32 and 33)
Qualifying Activities for Pionee r Status Enterprise Certificate
A. New technology
Activities involving:
(1) electronic assembly - the assembly of electronic products and components (but
excluding TV);
(2) microtechnics and micromechanics, including  horological products - comprising high-
precision micro-mechanical assemblies;
(3) manufacturing technologies - manufacture of such items as dies and moulds,
measuring instruments, automobile component s, high precision tools, high precision
sheet metals, and electric motors;G/SCM/N/74/MUS
Page 25
(4) specialized informatics and communication technology, including:
(a) software designs;
(b) computer based information and other related services;  and(c) computer aided design;
(5) biotechnology (with direct application to production sectors);(6) technology for conditioning of produce for export;  and(7) innovation or introduction of any other new technology.
B. Support industries
Activities intended to give support to the electrical and electronic, light engineering, micro-
technic, horological products, optical goods, printing, and jewellery industries, including:
(1) high precision sheet metal fabrication;
(2) electro-plating;
(3) high precision machining of metal parts;
(4) high precision plastic rubber injection moulding;(5) powder coating of metallic parts (as a high quality substitution to wet spray paining);
(6) high precision, light alloy metal foundry production of electronic components;  and
(7) specialized stockists/distributors of essential electronic parts and consumables for
jewellery manufacturing processes.
C. Service industries
(1) Service and maintenance activities for the electronic and engineering sector.
(2) Research and development activities (with direct application to production sectors).
(3) Consultancy services in production engineering, advanced industrial and engineering
designs, fashion design and development of applied creative and technical services.
(4) Materials testing laboratory and consultancy services in quality control and quality
management.
D. New sectors
Film production on an industrial scale or for promotion of directly related activities or
services.
[Amended GN 146/99]
FOURTH SCHEDULE
(Section 39(5))
Formula for calculation of duty upon approved disposal of production equipment
D
        __________   x T
365 x 4
Where D ═ total amount of duty exemptedG/SCM/N/74/MUS
Page 26
T ═ time in terms of days running from the date of disposal to the last day of the period of
4 years reckoning from the date when the exemption was effected.
[Amended 25/94]G/SCM/N/74/MUS
Page 27
Note: The text of this internet version of the Act has been prepared to reflect the text
published in the Government Gazette  of Mauritius.  The authoritative version is the
one published in the Government Gazette  of Mauritius No. 82 of 11 August 2001
THE FREEPORT ACT 2001
Act No. 17 of 2001
I assent
    CASSAM UTEEM
2nd August 2001 President of the Republic
__________________
ARRANGEMENT OF SECTIONS
Section
PART I - PRELIMINARY
1. Short title
2. Interpretation
3. Application of ActG/SCM/N/74/MUS
Page 28
PART II - THE MAURITIUS FREEPORT AUTHORITY
4. Establishment of the Authority
5. The Board6. Objects of the Authority7. Functions and powers of the Authority8. Meetings of the Board
9. Director-General
10. Delegation of powers11. Appointment of employees12. Conditions of service of employees13. Protection of members and employees
14. General Fund
15. Raising of funds
PART III - FREEPORT ZONES AND FREEPORT ACTIVITIES
16. Administration of land in freeport zones
17. Delimitation of freeport zones18. Enclosure of freeport zones19. Freeport activities
PART IV – LICENSING OF PERSONS IN FREEPORT ZONES
20. Persons who shall take out freeport licences
21. Application for freeport licence
22. Issue and duration of freeport licence
23. Suspension or revocation of freeport licence24. Cessation or transfer of businessG/SCM/N/74/MUS
Page 29
PART V - CONTROL OF FREEPORT ZONES
25. Obligations of freeport developers
26. Control of freeport zones
27. Goods entering a freeport zone28. Goods leaving a freeport zone29. Revaluation of goods30. Entry for goods31. Record
32. Certificate of transformation
33. Inspection of records and goods
PART VI - OFFENCES
34. Offences and penalties
35. Jurisdiction
PART VII - MISCELLANEOUS
36. Annual report
37. Exemption38. Regulations39. Transitional provisions
40. Consequential amendment
41. Repeal and savings42. Commencement
__________________G/SCM/N/74/MUS
Page 30
An Act
To amend and consolidate the law relating to the freeport, to provide for a new
legal framework to regulate the freeport ac tivities and, in collaboration with the
port and airport authorities, to promote, coordinate and encourage locally and
internationally, the development of freeport in Mauritius with a view to
transforming it into a logistics, marketing and distribution hub in the region
ENACTED by the Parliament of Mauritius, as follows:
PART I - PRELIMINARY
1. Short title
This Act may be cited as the Freeport Activities Act 2001.
2. Interpretation
In this Act:
“Authority” means the Mauritius Freeport Authority established under section 4;“Board” means the Board established under section 5;“bonded warehouse” has the same meaning as in the Customs Act 1988;
“Chairperson” means the Chairperson of the Board;
“company” means a company incorporated or registered under the Companies Act 1984 or
the Companies Act 2001;
“Comptroller” has the same meaning as in the Customs Act 1988;
“cooperative society” means a registered cooperative society under the Cooperative Societies
Act;
“Customs” has the same meaning as in the Customs Act 1988;
“customs laws” has the same meaning as in the Customs Act 1988;
“Director-General” means the Director-General  of the Authority appointed under section 9;
“duty” has the same meaning as in the Customs Act 1988;“employee” means an employee of the Authority appointed under section 11;“excise duty” has the same meaning as in the Excise Act 1994;
“export” has the same meaning as in the Customs Act 1988;
“export enterprise” has the same meaning as in the Industrial Expansion Act 1993;G/SCM/N/74/MUS
Page 31
“fee” means the fee referred to in section 22;
“freeport activities” has the meaning assigned to it by section 19;“freeport developer” means a private freeport developer or a third party freeport developer, as
the case may be;
“freeport licence” means a licence issued under section 22;“freeport operator” means a person duly licensed under this Act to carry out one or more of
the freeport activities specified in item 3 of the Second Schedule;
“freeport zone” has the meaning assigned to it by section 17;
“import” has the same meaning as in the Customs Act 1988;“infrastructure works”, in relation to land to be developed by the Authority in the freeport
zones, means the construction of access roads and roadside drains, security posts and fencing
and the provision of water supply, sewerage system, electricity and telecommunication
facilities and fire fighting system;
“licence” means a licence issued under section 22;“licensee” means any person licensed under this Act;“Mauritius Ports Authority” means the Mauritius Ports Authority established under the Ports
Act 1998;
“member” means a member of the Board and includes the Chairperson;“Minister” means the Minister to whom responsibility for the subject of finance is assigned;“occasional operator” means a person duly licensed under this Act to carry out the activities
specified in item 4 of the Second Schedule;
“private freeport developer” means a person duly licensed under this Act to carry out the
freeport activities specified in item 1 of the Second Schedule;
“third party freeport developer” means a person duly licensed under this Act to carry out the
freeport activities specified in item 2 of the Second Schedule;
“value added tax” means the value added tax chargeable under the Value Added Tax Act
1998.
3. Application of Act
(1) Nothing contained in this Act shall in an y way affect the customs laws and the Ports
Act 1998.
(2) The Excise Act 1994 shall not apply to any goods manufactured or produced in a
freeport zone unless such goods are entered for consumption in Mauritius.
(3) The Landlord and Tenant Act and the Non-Citizens (Property Restriction) Act shall
not apply to any lease under this Act.G/SCM/N/74/MUS
Page 32
(4) The Trades and Industries Classification Act relating to classified trade shall not
apply to a licensee under this Act.
(5) Sections 74 and 100 of the Local Government Act 1989 relating to rates, levies and
licences shall not apply to a licensee under this Act.
PART II - THE MAURITIUS FREEPORT AUTHORITY
4. Establishment of the Authority
(1) There is established for the purposes of this Act a Mauritius Freeport Authority.
(2) The Authority shall be a body corporate.
5. The Board
(1) The Authority shall be administered and managed by a Board.
(2) The Board shall consist of:
(a) a Chairperson, appointed by the Minister;
(b) the Director-General of the Authority;
(c) a representative of the Ministry of Finance;
(d) a representative of the Prime Minister’s Office;
(e) a representative of the Ministry responsible for the subject of international
trade;
(f) a representative of the Mauritius Ports Authority;
(g) the Comptroller of Customs or his representative; and
(h) not more than 2 persons appointed by the Minister.
(3) Every appointed member shall hold office for a period of 3 years on such terms and
conditions as the Minister may determine and shall be eligible for re-appointment.
(4) Every member shall be paid by the Authority such fees as the Board may, with the
approval of the Minister, determine.
6. Objects of the Authority
The objects of the Authority shall be:
(a) to promote and encourage freeport trade including transit and entrepôt trade and to
position Mauritius as a logistics, marketing and distribution hub in the region;
(b) to regulate and control activities in the freeport zones;(c) to manage land use in the freeport zones;
(d) to work out objectives, policies and strategies for the development of freeport zones;
(e) in collaboration with the port and airport authorities and other stakeholders, to
promote, coordinate and encourage locally and internationally, the development of
the freeport in Mauritius; and
(f) to advise the Minister generally on any matter relating to the development of freeport
zones in Mauritius.G/SCM/N/74/MUS
Page 33
7. Functions and powers of the Authority
The Authority shall have such functions and powers as are necessary to further most
effectively its objects, and in particular, to:
(a) control and manage the allocation of land in the freeport zones, its use, development,
operation and related matters;
(b) develop land in the freeport zones by providing infrastructure works and to lease such
land to freeport developers;
(c) allocate areas, spaces, wharves and any other facility or structure which may be
available in the freeport zones on such terms as the Authority deems appropriate;
(d) issue licences for the carrying out of freeport activities;(e) levy rents, fees, charges and other dues to be paid by a licensee; and
(f) make recommendations to the Minister for the establishment of freeport zones in
Mauritius.
8. Meetings of the Board
(1) In the discharge of its functions, the Board shall meet as often as is necessary but not
less than once every month and at such time and place as the Chairperson thinks fit.
(2) In the absence of the Chairperson at a meeting of the Board, the members present
shall elect a member to act as Chairperson for that meeting.
(3) Everything authorised or required to be done by the Board shall be decided by a
simple majority of the members present and voting.
(4) At any meeting of the Board:
(a) 5 members shall constitute a quorum;
(b) each member shall have one vote on the matter in question and, in the event
of an equality of votes, the Chairperson of the meeting shall have a casting
vote.
(5) Subject to the other provisions of this section, the Board shall regulate its meetings
and proceedings in such manner as it thinks fit.
9. Director-General
(1) There shall be a chief executive officer of the Authority who shall:
(a) be known as the Director-General; and
(b) be appointed by the Board with the approval of the Minister, on such terms
and conditions as it thinks fit.
(2) The Director-General shall be responsible for the execution of the policy of the Board
and for the control and management of the day-to-day business of the Authority.
(3) In the exercise of his functions, the Director-General shall act in accordance with
such directions as he may receive from the Board.G/SCM/N/74/MUS
Page 34
(4) The Director-General shall, unless otherwise directed by the Board, attend every
meeting of the Board and may take part in its deliberations but shall not be entitled to vote on any
matter before the Board.
(5) The Director-General may, with the appr oval of the Board, delegate his functions or
any power delegated to him under section 10 to an employee.
10. Delegation of powers
(1) Subject to subsection (2) and to such instructions and rules of a general nature as it
may give or make, the Board may delegate to the Chairperson or the Director-General such of its
powers and functions under this Act as may be necessary to assist in the effective management of theAuthority other than the power:
(a) to borrow money; or
(b) to raise loans.
(2) (a) Subject to paragraph (b) no document shall be executed or signed by or on
behalf of the Authority, unless it is signed by the Chairperson and the
Director-General, or, in the absence of the Chairperson, by any other member
appointed by the Board for that purpose.
(b) In the absence of the Director-General, his powers under paragraph (a) shall
be exercised by such employee as may be appointed by the Board for that
purpose.
11. Appointment of employees
(1) The Board may employ, on such terms and conditions as it thinks fit, such person as
may be necessary for the proper discharge of its functions.
(2) Every employee shall be under the administrative control of the Director-General.
12. Conditions of service of employees
The Board may make provisions, in such form as it may determine, to govern the conditions
of service of employees and, in particular, to deal with:
(a) the appointment, discipline, dismissal, pay and leave of, and the security to be given
to, employees;
(b) appeals by employees against dismissal or other disciplinary measures; and(c) the establishment and maintenance of provident and pension fund schemes and the
contributions payable to those schemes and the benefits derived therefrom.
13. Protection of members and employees
(1) No liability, civil or criminal, shall attach to any member or employee or to the
Authority in respect of loss arising from the exercise in good faith by a member, an employee or the
Authority of his or its functions under this Act.
(2) Every employee shall, for the purposes of the Public Officers’ Protection Act, be
deemed to be a public officer.G/SCM/N/74/MUS
Page 35
14. General Fund
(1) The Authority shall establish a General Fund:
(a) into which shall be paid:
(i) all rents, fees, charges and other dues payable under the Act;
(ii) all sums received from the Consolidated Fund; and
(iii) all sums which may lawfully accrue to the Authority;
(b) out of which all payments required to be made by the Authority shall be
made.
(2) The Board may:
(a) invest all sums which may be available for investment with such bank,
financial institution, fund or in such securities or loans; and
(b) realise any investments, securities or  loans in order to finance the operations
of the Authority or for the purpose of reinvestment under this section.
(3) The surplus money in the Fund shall be paid into the Capital Fund established under
the Finance and Audit Act.
15. Raising of funds
Subject to the approval of the Minister, the Authority may raise funds on such terms and
conditions and in such manner as the Board may determine.
PART III - FREEPORT ZONES AND FREEPORT ACTIVITIES
16. Administration of land in freeport zones
(1) The Authority shall be responsible for th e overall administration of the land in the
freeport zones referred to in section 17 and for its proper allocation in accordance with land-use
policies and legislation.
(2) Where a company or a cooperative society being a freeport developer fails to comply
with its obligations under the lease agreement with the Authority relating to the development of the
freeport zone allocated to it, the Authority shall have the right to take back the whole or part of the
land which has remained undeveloped.
17. Delimitation of freeport zones
(1) The areas of land specified in the First Schedule shall be the freeport zones.
(2) The Minister may, on the recommendation of the Board, by regulations, amend the
First Schedule to provide for any area or part of any area, to be, or to be removed from, a freeportzone.
18. Enclosure of freeport zones
The Authority shall take such measures as:G/SCM/N/74/MUS
Page 36
(a) to ensure that a freeport zone is properly enclosed and the enclosure is properly
maintained and guarded;
(b) to determine the appropriate entry and exit points in a freeport zone,
to the satisfaction of the Comptroller.
19. Freeport activities
(1) Subject to the other provisions of this section, the activities specified in the Second
Schedule shall be the freeport activities authorised to be operated in the freeport zones.
(2) Subject to subsection (3), no activity shall be carried out in a freeport zone unless it is
carried out:
(a) for the re-export and export of goods;
(b) for the development of the freeport zone;
(c) for the provision of goods and services by freeport operators wholly and exclusively
to freeport developers and other freeport operators.
(3) (a) The Board may, subject to such conditions as it may impose:
(i) authorise a third party freeport developer to provide warehousing
facilities in a freeport zone:
(A) to an export enterprise for the storage of duty free goods; or
 (B) to any other enterprise ou tside the freeport zones for the
storage of goods, provided that, in such a case, the
authorisation shall not be granted in respect of a period after
30 June 2004;
(ii) authorise an enterprise to carry out an activity in a freeport zone for
the provision of support services to a licensee or to any person withinor outside the freeport zones.
(b) No enterprise referred to in paragra ph (a) shall be regarded as carrying out a
freeport activity and requiring a licence under this Act.
(4) Subject to subsection (5), the Board may authorise a private freeport developer or a
freeport operator to remove goods from a freeport zone to any other place in Mauritius on completion
of customs formalities.
(5) (a) Where goods are removed pursuant to subsection (4) for consumption in
Mauritius, the goods shall be subject to –
(i) in the case of a foreign company registered under the Companies Act
2001, such quota as may be determined by the Board provided that
the quota in respect of any period of 12 months shall not, after aperiod of 3 years from the date the company starts its operations or
such other period as may be approved by the Board, exceed 20 per
cent of the value for customs purposes of the goods re-exported or
exported by the foreign company during that period of 12 months;G/SCM/N/74/MUS
Page 37
(ii) in any other case, such quota as may be determined by the Board
provided that the quota in respect of any period of 12 months shall
not exceed 20 per cent of the value for customs purposes of the goods
re-exported or exported by a private freeport developer or freeport
operator during that period.
(b) For the purposes of paragraph (a), the first period of 12 months shall
commence on the day the licensee first re-exports or exports the goods.
(6) For the purposes of subsection (5), the Authority shall monitor the quota and where
the determined quota has been exceeded, it shall ta ke such steps as may be necessary including the
suspension or revocation of the licence of the private freeport developer or freeport operator, as thecase may be.
PART IV – LICENSING OF PERSONS IN FREEPORT ZONES
20. Persons who shall take out freeport licences
(1) No person shall carry out any freeport activity in any freeport zone unless he is the
holder of an appropriate freeport licence under this Act.
(2) No holder of a freeport licence shall carry out any business activity outside the
freeport zone.
21. Application for freeport licence
(1) No person shall make an application for a freeport licence unless the person is a
company or a cooperative society and is not engaged in any business activity outside the freeport
zone.
(2) An application under subsection (1), shall be made in such manner and in such form
as may be approved by the Director-General and shall specify:
(a) the full name and address of the applicant;
(b) the freeport zone in which the applicant intends to operate;
(c) the freeport activities to be carried out by the applicant; and
(d) such other information or particulars as may be required in the form of
application.
(3) On receipt of an application, the Director-General:
(a) may require the applicant to give such further information as may be
necessary for the determination of the application; and
(b) shall forthwith refer the application to the Board with recommendations,
observations and comments.
(4) The Board may:
(a) reject an application and notify the applicant of the rejection;
(b) refer the application back to the Director-General for further information; or(c) approve the application on such terms and conditions as it thinks fit.G/SCM/N/74/MUS
Page 38
(5) Where an application is approved or rejected under subsection (4), the Director-
General shall notify the applicant:
(a) in the case of an application for a freeport developer, within 30 days of the
date of the application; or
(b) in any other case, within 15 days of the date of the application.
22. Issue and duration of freeport licence
(1) Where an application is approved by the Board, the Director-General shall, after
payment by the applicant of the appropriate fee specified in Part I of the Third Schedule, issue anappropriate freeport licence to the applicant subject to such terms and conditions as
the Board may impose.
(2) Every freeport licence under this Act shall be  in such form and shall be issued in such
manner as may be approved by the Director-General.
(3) Subject to subsection (4), the fee under subsection (1) shall be paid:
(a) at the time of issue of the freeport licence; and
(b) in respect of every period of 12 months as from the date of issue of the
freeport licence, not later than 15 days before the expiry date of the licence.
(4) The fee payable in respect of a licence to an occasional operator referred to at item 4
of Part I of the Third Schedule shall be paid at the time of issue of the licence.
(5) No freeport licence issued under this Act shall be transferable except with the
approval of the Authority.
(6) Every holder of a freeport licence shall display in a conspicuous place at his business
premises in the freeport zone his freeport licence.
(7) Every licensee shall pay to the Director-General of the Authority the appropriate
charges specified in Part II of the Third Schedule.
23. Suspension or revocation of freeport licence
(1) Where the Board is satisfied that a company or cooperative society, holder of a
freeport licence:
(a) has carried out or is carrying out any activity which it has not been authorised
to carry out by virtue of its freeport licence; or
(b) has acted or is acting:
(i) in contravention of this Act or any regulations made thereunder;
(ii) in breach of any conditions of its licence;(iii) in breach of section 19; or
(iv) in such a way as to tarnish the good repute of Mauritius as an
attractive base for freeport operations,G/SCM/N/74/MUS
Page 39
the Board may, by written notice, require the company or cooperative society to show cause, within
30 days of the date of service of the notice, why the freeport licence should not be suspended or
revoked, and where the Board is satisfied that, having regard to all the circumstances of the case, it is
expedient to do so, it shall suspend or revoke the licence, as the case may be.
(2) Where a licence is suspended or revoked under subsection (1), the company or
cooperative society shall cease its freeport activities as from the effective date of the suspension or
revocation of the licence, as the case may be.
24. Cessation or transfer of business
Where a company or cooperative society holding a freeport licence intends to cease or ceases
its freeport activities or transfers its business in the freeport zone, it shall within 15 days of the
cessation or transfer, give notice in writing thereof to the Director-General and return its licence.
PART V - CONTROL OF FREEPORT ZONES
25. Obligations of freeport developers
(1) Every freeport developer shall, in respect of the freeport zone allocated to him,
control and manage:
(a) the activities being carried out in that zone; and
(b) the goods entering or leaving that zone.
(2) Every freeport developer shall be responsible and accountable to the Authority in
respect of his own freeport activities or the freeport activities carried out by the freeport operators inthe freeport zone allocated to him.
(3) Where, in the exercise of his control and management, a freeport developer finds that
a freeport operator is not complying with, or is in breach of, any provisions of this Act or any
regulations made thereunder, he shall immediately report the matter in writing to the Authority and to
the Comptroller.
(4) Every freeport developer shall, in relation to the freeport zone allocated to him:
(a) be responsible and accountable to the Comptroller in respect of goods
entering and leaving that zone; and
(b) ensure that duty, excise duty and value added tax in respect of goods leaving
that zone for consumption in Mauritius are paid; and
(c) be liable to any duty, excise duty and value added tax on goods missing or
not properly accounted for.
(5) Every freeport developer shall:
(a) submit to the Authority and the Comptroller, electronically or otherwise, an
annual return of all goods in his warehouses, duly certified by an independentqualified auditor; and
(b) at the same time pay to the Comptroller any duty, excise duty and value
added tax on goods found missing or not satisfactorily accounted for.G/SCM/N/74/MUS
Page 40
(6) Without prejudice to any action which the Comptroller may take under the customs
laws, any person who fails to comply with the requirements of this section shall commit an offence
and shall, on conviction, be liable to a fine not exceeding 200,000 rupees and to imprisonment for a
term not exceeding 3 years.
26. Control of freeport zones
(1) Every freeport zone shall be under the overall control and administration of the
Authority.
(2) The Director-General or any employee duly authorised in writing by him may:
(a) issue passes for access to a freeport zone;
(b) deny access to any unauthorised person;
(c) at any time stop and search any person or vehicle entering or leaving a
freeport zone.
(3) The Comptroller or any officer duly auth orised by him in writing, may at any time
stop and search any person or vehicle entering or leaving a freeport zone.
27. Goods entering a freeport zone
(1) Any:
(a) machinery, equipment and materials imported into a freeport zone for the
exclusive use of the freeport activities of a licensee; and
(b) goods imported into a freeport zone or removed from bonded warehouse or
export enterprise to a freeport zone and which are destined for export or re-
export,
shall be entered free of duty, excise duty and value added tax.
(2) Any goods or services supplied to a licensee by a registered person under the Value
Added Tax Act 1998 shall be chargeable to value added tax at zero-rate, provided that the goods and
services so supplied are meant wholly and exclusively for the freeport activities of the licensee.
(3) Where goods and services are supplied in accordance with subsection (2), the licensee
shall comply with such procedures as may be laid down by the Director-General.
28. Goods leaving a freeport zone
Unless exported or re-exported, any goods removed from a freeport zone:
(a) by an occasional operator for display or sale at international exhibitions and for sale
at trade fairs in a freeport zone shall be entered on payment of duty, excise duty and
value added tax; and
(b) to any other place outside the freeport zone, shall be entered on payment of duty,
excise duty and value added tax.G/SCM/N/74/MUS
Page 41
29. Revaluation of goods
(1) The Comptroller may, on application and at the expense of the licensee, reassess the
value of goods which have deteriorated or been lost or destroyed.
(2) Where the Comptroller is satisfied that the owner is not responsible for the
deterioration, loss or destruction, duty, excise duty and value added tax shall be reassessed
accordingly.
30. Entry for goods
(1) Subject to the other provisions of this section, any goods entering or leaving a
freeport zone pursuant to section 27(1) or 28 shall be entered in the same manner as goods are
imported or exported under customs laws and shall, unless otherwise authorised, be made through the
TradeNet under the Customs (Use of Computer) Regulations 1997 and any payment of duties and
taxes shall be made electronically.
(2) Notwithstanding regulations 17 and 18 of the Customs (Use of Computer)
Regulations 1997, where an electronic declaration is made pursuant to subsection (1), the TradeNet
user:
(a) shall not submit to Customs –
(i) a hard copy of the electronic declaration in respect of the goods; and
(ii) the specified documents in respect of those goods; but
(b) shall keep at his business premises a hard copy of the electronic declaration
in a form approved by the Comptroller together with the documents referred
to in paragraph (a)(ii) and shall make them available for examination on
demand by a proper officer of Customs.
31. Record
(1) Every licensee shall, for the purposes of this Act, keep in relation to his freeport
activities a full and true written record, whether electronically or otherwise, in the English or Frenchlanguage of every transaction he makes.
(2) The Authority may in writing require a licensee to keep a record referred to in
subsection (1) in such manner as may be specified by it.
(3) Every licensee shall, in respect of any goods entering or leaving his business premises
in a freeport zone, keep in chronological order a copy of the entry he makes either electronically or
otherwise together with the documents in respect of those goods referred to in section 30(2)(b).
(4) Every record under subsections (1), (2) and (3) shall be kept for a period of at least
5 years after the completion of the transaction to which it relates and shall be made available on
demand by the Authority or the Comptroller.
(5) Any person who fails to keep or to make available to the Authority or the
Comptroller, any record required to be kept under this section shall commit an offence and shall, onconviction, be liable to a fine not exceeding 200,000 rupees and to imprisonment for a term not
exceeding 3 years.G/SCM/N/74/MUS
Page 42
32. Certificate of transformation
Upon request in writing from a licensee, the Authority may issue:
(a) a certificate detailing the transformation and value added activity carried out on his
goods within the freeport zone; or
(b) a certificate to the effect that any of his goods which has been transhipped through the
freeport zone has not suffered any transformation or value added activity.
33. Inspection of records and goods
Every licensee shall permit the Authority or the Comptroller at all reasonable times to inspect
the records required to be kept by him under section 31 or have access to the premises of the licensee
for the purpose of examining any goods.
PART VI - OFFENCES
34. Offences and penalties
(1) Any company or cooperative society, holder of a freeport licence, which:
(a) has carried out or is carrying out any activity not specified in its licence;
(b) fails to comply with any of the conditions specified in its licence;
(c) fails to furnish, or furnishes any information or produces, any document
which is false or misleading in any material particular;
(d) obstructs the Comptroller or any officer of Customs duly authorised by the
Comptroller, or any employee of the Authority in the performance of his
functions under this Act or under any regulations made thereunder; or
(e) otherwise contravenes any provision of this Act or any regulations made
thereunder,
shall commit an offence.
(2) Any person who commits an offence under this Act shall, on conviction, be liable to a
fine not exceeding 500,000 rupees and to imprisonment for a term not exceeding 5 years.
35. Jurisdiction
Notwithstanding:
(a) section 114(2) of the Courts Act; and(b) section 72(5) of the District and Intermediate Courts (Criminal Jurisdiction) Act,
a Magistrate shall have jurisdiction to try an offence under this Act or any regulations made under this
Act and may impose any penalty provided by this Act.G/SCM/N/74/MUS
Page 43
PART VII - MISCELLANEOUS
36. Annual report
(1) The Authority shall furnish to the Minister:
(a) an annual report of its activities together with its audited accounts, not later
than 3 months after such accounts have been certified; and
(b) such information with respect to the activities of the Authority, in such
manner and at such time, as he may specify.
(2) The auditor to be appointed under section 5(1) of the Statutory Bodies (Accounts and
Audit) Act shall be the Director of Audit.
(3) The Minister shall, at the earliest available opportunity, lay a copy of the annual
report and audited accounts before the National Assembly.
37. Exemption
Notwithstanding any other enactment, the Author ity shall be exempt from the payment of any
duty, levy, rate or tax.
38. Regulations
(1) The Minister may:
(a) make such regulations as he thinks fit for the purposes of this Act;
(b) on the recommendation of the Board, amend, by regulations, the Schedules.
(2) Any regulations made under this section may provide for the levying of fees and
taking of charges.
39. Transitional provisions
(1) Where a licensee under the Freeport Act 1992 carries out an activity which, on the
coming into operation of this Act, is not a freeport activity under this Act, he shall take such measures
as may be necessary to change, within a period of 18 months of the date of the commencement of this
Act or such other period as may be approved by the Board, that activity into a freeport activity underthis Act.
(2) Every record required to be kept under section 24 of the Freeport Act 1992 before the
commencement of this Act shall be kept for a period of at least 5 years after the completion of the
transaction to which it relates and shall be made available on demand by the Authority or theComptroller.
40. Consequential amendment
The Customs Act 1988 is amended in section 162, in subsection (8), by deleting the words
“Industrial Expansion Act 1993 and the Export Service Zones Act” and replacing them by the words
“Industrial Expansion Act 1993, the Export Service Zones Act and the Freeport Act 2001”.G/SCM/N/74/MUS
Page 44
41. Repeal and savings
(1) The following enactments are repealed:
(a) The Freeport Act 1992; and
(b) The Freeport (Authorised Activities) Regulations 1997.
(2) Notwithstanding the repeal of the enactments specified in subsection (1):
(a) any licence issued or permit or authorisation granted under the repealed
enactments and in force on the day immediately before the coming into
operation of this Act shall be deemed to have been issued or granted underthis Act and shall remain valid for the period specified in the licence, permit
or authorisation, as the case may be;
(b) any act or thing done under the repeal ed enactments shall, on the coming into
operation of this Act, be deemed to have been done under this Act.
42. Commencement
(1) Subject to subsection (2), this Act shall come into operation on a date to be fixed by
Proclamation.
(2) Different dates may be fixed for the coming into operation of different sections of this
Act.
Passed by the National Assembly on the seventeenth day of July two thousand and one.
               ANDRÉ POMPON
     Clerk of the National AssemblyG/SCM/N/74/MUS
Page 45
FIRST SCHEDULE
(Section 17)
Areas
The zones described hereunder are based on the national grid of Mauritius and the plans
describing them may be consulted at the office of the Mauritius Freeport Authority. All coordinates
are attached to the National Grid System.
Zone 1, a plot of State Land, at Mer Rouge area in the district of Port Louis, of an extent of
1 hectare and 2 753 square metres, bounded by a line running South East from point (996621.6mE,
1005579.2mN) to point (996771.6mE, 1005476.0mN); thence South West to point (996727.8mE,
1005419.5mN); thence North West to point (996583.7mE, 1005528.9mN) and thence North East to
the starting point.
Zone 5, a plot of State Land, being part of reclaimed land at Mer Rouge area in the district of
Port Louis measuring thirty two hectares eight thousand six hundred and forty four square metres
(32 ha 8644m 2 ), made up of two contiguous portions of land, described as follows:
The first portion of the extent of eleven hectares five thousand three hundred and forty square
metres (11 ha 5340m 2 ) is bounded as follows:
Towards the North East by surplus of State Land (access road) on three hundred and seventy
eight metres and thirty centimetres (378.30m), i.e. between coordinates 996676.80mE,
1006572.48mN and 996989.96mE, 1006360.24mN.
Towards the South East by the second portion hereinafter described on four hundred and
fifteen metres and seventy one centimetres (415.71 m), i.e. between coordinates
996634.56mE, 1006144.59mN and 996989.96mE, 1006360.24mN.
Towards the South West again by surplus of State Land (Container Park) on three hundred
and fifty four metres and four centimetres (354.04m), i.e. between coordinates 996449.73mE,1006446.55mN and 996634.56mE, 1006144.59 mN.
Towards the North West by the high water mark of the sea.The second portion of the extent of twenty one hectares three thousand three hundred and
four square metres (21 ha 3304m 2 ) is bounded as follows:
Towards the North East by surplus of State Land (access road) on three hundred and fifty nine
metres (359.00m), i.e between coordinates 996989.96mE, 1006360.24 mN and 997287.11mE,
1006158.79mN.
Towards the South East by surplus of State Land (access road) on five lines measuring
respectively six metres and ninety three centimetres (6.93m, i.e between coordiantes
997287.11mE, 1006158.79mN and 997290.50mE, 1006152.75mN; twenty five metres and
sixty four centimetres (25.64m), i.e between coordinates 997290.50mE, 1006152.75mN and997287.22mE, 1006127.32mN; two hundred and eighty one metres and forty four centimetres
(281.44m), i.e between coordinates 997287.22mE, 1006127.32mN and 997144.25mE,
1005884.90mN; sixty three metres and twenty eight centimetres (63.28m), i.e between
coordinates 997144.25mE, 1005884.90 mN and 997124.11mE, 1005824.91mN; sixty oneG/SCM/N/74/MUS
Page 46
metres and fifty four centimetres (61.54m), i.e between coordinates 997067.00mE,
1005802.00mN and 997124.11mE, 1005824.91mN.
Towards the South West again by surplus of State Land (access road and Container Park) on
two lines measuring respectively four hundred and thirty metres and four centimetres and(430.04m), i.e between coordinates 996688.98 mE 1006007.02mN and 997067.00mE,
1005802.00mN and one hundred and forty five metres and seventy five centimetres
(145.75m), i.e between coordinates 996614.00mE, 1006132.01mN and 996688.98mE,
1006007.02mN.
Towards the North West partly by surplus of State Land (Container Park) and partly by the
first portion hereinbefore described on two line s measuring respectively twenty four metres
and ten centimetres (24.10m), i.e. between coordinates 996614.00mE, 1006132.01mN and
996634.56mE, 1006144.59mN and four hundred and fifteen metres and seventy one
centimetres (415.71m), i.e. between coordinates 996634.56mE, 1006144.59mN and
996989.96mE, 1006360.24mN.
Zone 6, a plot of State Land, being part of reclaimed land at Mer Rouge area in the district of
Port Louis, of an extent of 2 hectares and 7 889 square metres and bounded by a line running from
point (996561.78mE, 1005809.66mN) in a South Easterly direction to point (996721.24mE,
1005720.37mN);
From the previous point in a South Westerly direction to point (996651.23mE,
1005595.28mN);
From the previous point in a North Westerly direction to point (996502.90mE,
1005697.28mN) and thence to point (996474.13mE, 1005744.28mN); and thence to point(996477.44mE, 1005758.03mN);
Finally, from previous point in a North Easterly direction to the starting point.Zone 7, a plot of State Land being part of reclaimed land Mer Rouge area in the district of
Port Louis, of an extent of eight decimal five hectares (8.5 ha) and bounded by a line running from
point in a South Westerly direction to point (996962.48mE, 1005585.29mN);
From the previous point in a North Westerly direction to point (996561.78mE,
1005809.66mN);
Finally, from the previous point in a North Easterly direction to point (996761.45mE,
1005931.88mN) and thence to the starting point.
Zone 8, a plot of State Land in the district of Port Louis, of an extent of nine thousand two
hundred and sixty-eight square metres (9268m 2 ) and bounded by a line running from point
(996954.59mE, 1004851.31mN) in a South Easterly direction to point (997010.18mE,1004814.90mN), thence to point (9997015.32mE, 1004811.56mN);
From the previous point in a South Westerly direction to point (996999.07mE,
1004781.83mN), thence in a Westerly direction to point (996992.48mE, 1004782.50mN), thence in a
South Westerly direction to point (996977.59mE, 1004755.25mN);
From the previous point to point (996938.07mE, 1004737.51mN), thence in an Easterly
direction to point (996883.47mE, 1004750.69mN), thence to the high water mark of the sea, thence
following the sinuosities of the water mark of the se a and thence in a Westerly direction to the starting
point.G/SCM/N/74/MUS
Page 47
Zone 9, an area of State Land within SSR International Airport, of an extent of one hectare
and one hundred and ten square metres (1ha 0110m 2 ) and bounded by a line running from point
(1015047.40mE, 974671.30mN) in a South Easterly direction to point (1015063.70mE,
974667.40mN) thence to point (1015086.10mE, 974656.50mN) and thence to point (1015106.36mE,974628.26mN);
From previous point North East to point (1015108.15mE, 974635.70mN), thence in a South
Easterly direction to point (1015113.91mE, 974634.50mN), and thence to point (1015122.15mE,
974624.97mN);
From previous point in an Easterly direction to point (91015134.00mE, 974625.30mN),
thence South East to point (1015161.10mE, 974575.90mN) and thence South West to point
(1015066.90mE, 974524.80mN);
From previous point in a North Westerly direction to point (1015061.00mE, 974535.90mN),
thence to point (1015049.90mE, 974571.50mN), thence to point (1015041.17mE, 974653.80mN) andthence to point (1015041.17mE, 974653.80mN and thence to point (1015038.40mE, 974656.50mN);
Zone 11, a portion of State Land, being part of reclaimed land situate within the Port Harbour
Area in the district of Port Louis and under the control of the Mauritius Ports Authority, of an extent
of one hectare, three thousand and six hundred square metres (1.36Ha) and bounded as follows:
Towards the East by the surplus of State Land (Reclaimed Land) on six lines, the first one on
a developed length measuring ninety three metres and seventy six centimetres (93.76m), the
second, third, fourth, fifth and sixth ones measuring thirty eight metres and seventy six
centimetres (38.76m), nine metres and sixty six centimetres (9.66m), thirty three metres andseven centimetres (33.07m), fourteen metres (14.00m), eight metres and forty centimetres
(8.40) respectively.
Towards the South West by the surplus of State Land (Reclaimed Land) on a developed
length measuring three hundred and nine metres (309.00m).
Towards the North West partly by an access fifteen metres (15.00m) wide on nine metres and
forty centimetres (9.40m) and partly by State Land (Reclaimed Land) on two lines measuring
one hundred and fifty three metres and fifty nine centimetres (153.59m) and one hundred and
sixty four metres and sixty one centimetres (164.61m) respectively.G/SCM/N/74/MUS
Page 48
SECOND SCHEDULE
(Section 19)
Freeport activities
1. Build, develop and manage its own infrastructural facilities for use exclusively for the
licensee’s own business authorised freeport activities including warehouses, cold storage facilities,
offices, exhibition centres, processing units and open storage facilities, provision of its own logistics
services and the carrying out of marketing activities and organising international exhibitions andinternational trade fairs.
2. Build, develop and manage infrastructures to be rented to licensees in order to facilitate the
authorised freeport activities including warehouses, cold storage facilities, offices, exhibition centres,
processing units and open storage facilities, provision of third party logistics services to licensees andthe carrying out of marketing activities and organising international exhibitions and international trade
fairs.
3. (a) Warehousing and storage
(b) Breaking bulk(c) Sorting, grading, cleaning and mixing
(d) Labelling, packing, repacking and repackaging
(e) Minor processing
(f) Light assembly
(g) Ship building, repairs and maintenance of ships and aircrafts(h) Storage, maintenance and repairs of empty containers
(i) Export and re-export oriented airport and seaport based activities
(j) Freight forwarding services
(k) Quality control and inspection services
4. Organisation and holding of international exhibitions and trade fairs.G/SCM/N/74/MUS
Page 49
THIRD SCHEDULE
(Section 22)
Part I - Licence fee
Annual licence fee payable Licence Freeport activities
within the
due dateafter the due
date
Rs Rs
1.  Private freeport
     developerWith the right to carry out the freeport
activities specified in item 1 of the
Second Schedule150,000 225,000
2.  Third party freeport
      developerWith the right to carry out the freeport
activities specified in item 2 of theSecond Schedule150,000 225,000
3.  Freeport operator With the right to carry out one or more of
the freeport activities specified in item 3
of the Second Schedule10,000 15,000
4.  Occasional operator With the right to carry out the activities
specified in item 4 of the Second
ScheduleRs. 15,000 for one-day event or
Rs. 12,000 per day for more
than one-day event
Part II - Charges
Description Rs
1. Processing of an application for a work, residence or investment permit 2,000
2. Actual storage permit to an export enterprise under the Industrial Expansion
Act 1993 for the use of warehousing facilities in a freeport zone for the
storage of duty free goods2,000
3. Annual storage permit to any other enterprise outside the freeport zones for
the use of warehousing facilities in a freeport zone for the storage of goods12,000
4. Certificate of transformation 200
5. Application Form for purchase of goods with VAT at zero rate 100
6. Overtime rates payable by licensees for payment to employees of the
Authority working overtime to supervise the activities of the licensees outsideoffice hours200 per hour or
part of an hourG/SCM/N/74/MUS
Page 50
ANNEX IV
EXTRACT FROM INCOME TAX REGULATION - (AMENDED GN 116 OF 2000)
21. Tax credit for exports
(1) For the purposes of section 71 (1) of the Act, the tax credit to be allowed shall be an
amount equal to:
(a) 15 per cent of the income tax payable by the company where the percentage
of qualifying export sales to total turnover is 10 per cent or over but not
exceeding 30 per cent;
(b) 25 per cent of the income tax payable by the company where the percentage
of qualifying export sales to total turnover is over 30 per cent but not
exceeding 50 per cent;  and
(c) 40 per cent of the income tax payable by the company where the percentage
of qualifying export sales to total turnover is over 50 per cent.
(2) For the purposes of paragraph (1), qualifying export sales shall be calculated on the
basis of the rupee equivalent of the amount remitted to the company at the rate obtaining when the
money was actually converted into Mauritius currency.
(3) In determining the percentage of qualifying export sales to total turnover of a
company, the numerator shall be the total of the rupee equivalent of the qualifying export sales of that
company actually converted into Mauritius currency and certified by a bank and the denominator shall
be the total turnover of that company.
(4) In this regulation:
"bank" has the same meaning as in the Banking Act 1988;
"gross income" shall be deemed to include:
(a) where a company receives goods on consignment, the gross proceeds realized
from the sale of the goods received on consignment;
(b) where a company sells goods on consignment, the gross proceeds realized
from the sale of the goods consigned by that company inclusive of the
commission payable in respect of that sale;  and
(c) where a company derives income from the provision of services, the gross
amount receivable without any deduction;
"qualifying export sales" means the proceeds derived from the export of goods, other than tea,
sugar or a by-product of sugar, manufactured or produced locally, or from the provision of
services outside Mauritius;G/SCM/N/74/MUS
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"total turnover" shall be deemed to include the aggregate of the gross income of the company
from whatever source derived, inclusive of qualifying export sales and as certified by a
qualified auditor.
[Amended GN 116/2000]
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