WORLD TRADE
ORGANIZATIONG/SCM/N/71/BLZ/Suppl.1
7 March 2002
(02-1157)
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
BELIZE
Supplement
The following communication, dated 28 February 2002, has been received from the Ministry
of Economic Development and Foreign Trade, Belize.
_______________
This is Belize’s detailed notification in respect of its request for extension of eligible export
subsidy programmes under Article 27.4 of the Agreement on Subsidies and Countervailing Measures
(SCM Agreement) and in conformity with the Pr ocedures indicated in paragraph 10.6 of the Doha
Ministerial Decision on Implementation-Related I ssues, as contained in Document G/SCM/39.
This new and full notification is in respect of the following export subsidy programmes
presently maintained by the Government of Belize, and in respect of which the procedures are being
followed:
- Programme under the Fiscal Incentives Act
- Programme under the Export Processing Zone Act
- Programme under the Commercial Free Zone Act
- Conditional Duty Exemptions Facility under the Treaty of Chaguaramas
The Conditional Duty Exemptions Facility meets the criteria of Document G/SCM/39 but was
not previously notified.  These are not necessarily export subsidies, however, given their importance
to local small and micro enterprises and agricultural operations not benefiting from the main
programmes, Belize would like to ensure the continued, legitimate use of this facility and is therefore
requesting an extension on the basis of Article 27.4 alone.
_______________G/SCM/N/71/BLZ/Suppl.1
Page 2
I. FISCAL INCENTIVES PROGRAMME
1. Description of the programme
The Fiscal Incentives Programme is a measure designed to encourage economic development
in all its aspects through investments in the production of goods and services, both for domestic
consumption and export. The programme provides for the grant of fiscal incentives to investors,foreign and local, in the form of full or partial exemptions from import duties and internal taxes These
tax holidays are normally granted for a period of five years in the first instance, with the possibility of
extension for a further period not exceeding ten years. In cases where the enterprise is in a sector
targeted by the government for special development assistance, whose operation is highly labour
intensive and whose production is strictly for export, the tax holiday may be for a maximum of
twenty-five years”.
The programme is presently administered under the Fiscal Incentives Act.
In order to ensure transparency and integrity in the implementation of the programme, the
following key provisions are worthy of note:
(a) That no goods imported under this duty exemption facility “shall be sold, hired, lent,
given away or otherwise disposed of”, except after payment of the duties otherwise
applicable (Article 9(1);
(b) That the minister responsible for Investment  shall cause a notice to be published in
two issues of a newspaper circulating in Belize at an interval of not less than oneweek between each issue, and in one issue of the (Government ) Gazette, containing
sufficient information relating to the ente rprise, and inviting any person who objects
to the making of such an Order to give notice  and published; and
(c) That every Order made under the Act must be laid before the National Assembly and
be subject to a negative resolution.
Access to the benefits requires an application to the Executive Chairman of the Belize Export
and Investment Development Service (BELTRAIDE), along with the appropriate application fee. The
application must also provide basic information as laid out in Section 3(1) of the Act. This
information is essentially to assist in evaluating the economic feasibility of the proposal. This is
necessary in order to maintain the integrity of the programme.
2. Period covered by the notification
1999, 2000 and 2001
1999 is an appropriate starting point of scrutiny, as it approximates the point in recent
economic history Belize’s investment programmes were revamped into their present form.
3. Policy objective and/or purpose of subsidy
The main objective of this development incentives policy is to attract foreign direct
investments into Belize, and to mobilize domestic investments, in order to boost the production of
goods and services for domestic consumption and, where possible, for export.  While initially there
was a specific interest in the development of industries that utilize domestic raw materials, this is nota current requirement either in law or in administrative practice. The interest in boosting productionG/SCM/N/71/BLZ/Suppl.1
Page 3
for export, especially in non-traditional crops and value-added products, remains a necessary and
legitimate development policy of the Government of Belize.
The Act requires applicants to furnish “where applicable, particulars necessary to determine
the level of exports, foreign exchange earnings or foreign exchange savings;” (Article 3(1)(d)).However, Belize wishes to clarify that this provision does not, either de facto  or de jure , make the
grant of benefits necessarily contingent on export performance. In fact this specific information is
required specifically for project evaluation in order to assess the potential contribution to overall
economic development. In such assessments, the issue of foreign exchange has been a legitimate
consideration given the country’s relatively liberal import regime and the continuous need for hard
currency to finance a growing demand for imports – which is an unavoidable consequence of
globalization and liberalization.
It should be further understood that the programme is intended to accommodate all types of
investments, by any size of enterprise. The subsidies are not specific to any sector or industry,
although the broad headings of agriculture and manufacturing are emphasized as priority areas in the
country’s economic development strategy, including its food and nutrition security interests and itsgoals and objectives relating to the elimination of poverty. As such, the subsidies are generally
available for purposes of the CSM Agreement.
4. Background and authority for subsidy
In its early stages since 1973 the programme was implemented under the Development
Incentives Act, and the Fiscal Incentives (Industrial Enterprises) Act. These were repealed and
replaced by the present Fiscal Incentives Act, Chapter 54 of the Laws of Belize, Revised Edition
2000. This law was revised in 2000 under the Law Revision Act, Chapter 3 of the Laws of Belize,
Revised Edition 1980-1990).
The programme has evolved since 1973 through revised legislation as follows:
Chapter 45 of the Laws of Belize, Revised Edition 1980-1990
Act No. 6 of 1990
Act No. 20 of 1996
Act No. 3 of 2000
In essence, the main goal of the programme was to promote economic development in all
sectors. However, in its administration there was a clear preference for rural agricultural projects, and
industries that utilize domestic raw materials.
One notable new feature of the programme is the provision that made companies with investments of
less than $250,000 (US$125,000) also eligible for these incentives, which were previously available
only for investments of $250,000 or higher.
5. Form of the Subsidy
The subsidy consists of tax holidays, effected through the grant of full and partial exemptions
from payment of import duties and internal taxes for a specified period.  The import charges covered
by the Act, and in respect of which the tax holidays apply, include import duties and “other duties and
charges” (stamp duty and revenue replacement duty) that were bound in the Uruguay Round. The
internal taxes are: income taxes otherwise payable under the Income and Business Tax Act, and sales
taxes under the Sales Tax Act.G/SCM/N/71/BLZ/Suppl.1
Page 4
The exemptions on import duties are mainly in respect of imports of construction and related
materials for the physical facilities, on inputs of materials for production and operations purposes, and
essential transport equipment and machinery.
In the case of import duty, during the exemption period, every company granted an approved
enterprise order may import into Belize, free of import duty and stamp duty, the following:
(a) All building materials, plant, machinery, equipment, tools including specialist hand
tools (but not including other hand tools), utility and transport vehicles, fixtures and
fittings, office equipment, and appliances;
(b) Spare parts on plant and plant related machinery and agricultural machinery; and
(c) Any raw material or other items imported for use in the approved enterprise.
In the case of internal taxes, these normally apply to income tax under the Income and
Business Tax Act. These are normally only partial ex emptions. These partial  exemptions apply to “all
profits and gains accruing to the approved enterprise and arising from the production of the approved
product or service …” (Section 6(2). All other applicable terms relating to income tax exemptions are
contained in Section 6.
6. To whom and how the subsidy is provided
The Fiscal Incentives Act (Section 3(1)) clearly states: “Any person desirous of establishing
or conducting an enterprise in Belize may apply … fo r an approved enterprise order in relation to the
proposed enterprise…” This applies both to new and existing enterprises. The term “person” may be
either legal or natural (human). Foreign and local investors alike are entitled to the benefits. The basic
requirement is for the company or activity to posses the economic potential and viability to contribute
to the overall economic development of Belize.
The programme, in its earlier form, had discriminated against small, medium-sized and micro
enterprises by virtue of requiring a minimum inve stment of BZ$ 250,000 in order to be considered for
an Approved Development Order. This has been amended with a provision permitting investments of
less than BZ$ 250,000 to also qualify for the benefits, along with a waiver of an application fee.
In actual implementation, most of the approved enterprise orders have been granted to the
hotel and resorts sector, large scale agricultural operations, and a few manufacturing companies.
The process of accessing benefits under the programme begins with an application to the
Executive Chairman of BELTRAIDE. Such application must contain the basic information (contained
in Section 3(1)) necessary for an evaluation of the economic viability of the enterprise. Some
elements of that information is required specifically to assess the potential of the enterprise to
contribute to employment creation, particularly in rural areas, and the capacity to earn foreignexchange, for obvious reasons. However, the potential to earn or save foreign exchange is no
precondition for the grant of an approved enterprise order.
The application, once received with the application fee, is subjected to a complete analysis by
BELTRAIDE.  The application must also meet the following requirements:
(a) That the company which will establish or conduct the enterprise in respect of which
the application has been made, has been incorporated in Belize;
(b) That the enterprise will be beneficial to the economy of Belize; andG/SCM/N/71/BLZ/Suppl.1
Page 5
(c) That it is expedient in the public interest to approve the enterprise.
If the proposal is found to be not feasible, this fact is officially communicated to the applicant
within a reasonable period. The applicant has the right to resubmit a revised proposal. If it is found to
be feasible, a recommendation for approval is made to the Minister responsible for Investment. The
general public must be afforded an opportunity to object to the granting of an order, and the approvedenterprise order must also be placed before the National Assembly for a negative resolution (see
information at A(1)).
Both the duty exemption and tax exemption benefits under the programme are also available
to companies providing services. In practice most benefits have accrued to tourism and tourism-
related services, largely reflecting investor preferences based on the demand for such services in
Belize.
7. Subsidy per unit
This information is not currently available. An effort is being made to establish a system and
mechanism for the compilation of such data on a routine basis.
8. Duration of the subsidy
As indicated earlier, these tax holidays are normally granted for a period of five years in the
first instance, with the possibility of extension for a further period not exceeding ten years.
However,
“In the case of a company which is engaged in agriculture, agro-industry, food-
processing, Mari culture or manufacturing and whose operation is highly labour
intensive and whose production is strictly for export, the tax holiday may be for a
maximum of twenty-five years” (Article 6(1)(b).
9. Statistical data on impact of the programme
This information is not presently being collected.
II. EXPORT PROCESSING ZONE PROGRAMME
1. Description of the programme
The Export Processing Zone (EPZ) programme is an incentive programme designed to attract
investments into manufacturing, non-traditional sector s to build export supply capabilities in light of
the recurrent and widening merchandise trade deficit that Belize is experiencing. It provides for
production and export of both goods and services, primarily for export. Subsidies take the form of full
exemptions from import duties and internal taxes.
The regime calls for the designation of by an EPZ by the Export Processing Zone Committee
(EPZC), and the development and management of such zones by EPZ Developers, who responsible
for putting in place all physical and services infrastructure and are authorized to charge fees for all
services provided to EPZ Businesses within a zone.  The EPZ businesses are approved by the EPZC
through the grant of a Certificate of Compliance. The regime also provides for Special ExportProcessing Zones, which are single-factory/operations physically located units outside designated
EPZs.G/SCM/N/71/BLZ/Suppl.1
Page 6
In practice, only a couple EPZs have been designated so far, and the major one is engaged
exclusively in services. The majority of EPZs are Special EPZs, most of which are into shrimp
cultivation (encompassing entire shrimp farms). A few operate in other industries, including one in
fish farming and another in bamboo cultivation. The only notable EPZ in the manufacturing sector is
one company engaged in production of garments under the special United States facility for U.S. cutmaterials (TSUS 9802). This factory previously operated under the Fiscal Incentives Programme.
2. Period covered by the notification
1999 – 2001
3. Policy objective and/or purpose of subsidy
The main objective of the Export Processing Zone programme is to attract new investments
into the productive sectors of the national economy, and particularly in the manufacturing sectors, in
order to increase the number of export products and overall export supply capabilities.
Belize’s economy has traditionally rested on a few agricultural export products (sugar,
bananas, citrus and fisheries products) all of which benefit from preferential trading arrangements(with Europe and North America) and preferential prices. The country is also experiencing a recurrent
overall merchandize trade deficit, reflecting in part the expansion of imports due to trade liberalization
and the disproportionate growth in export earnings , which increasingly suffers from exchange rate
losses.
With the ongoing erosion and impending disappearance of those preferences, Belize is
seeking to expand its traditional production and diversify its production base and export basket.
Emphasis has been placed on the development of non-traditional products. To achieve this objective,
new investments are urgently needed in both agriculture and manufacturing, as well as in the services
that facilitate international trade. Given the great demand for investment by other developingcountries in the region, there is stiff competition for investment and it is necessary to offer very
attractive investment incentives in order to offset some of the major disincentives faced by potential
investors. These disincentives include high utility costs (especially energy and communications),
underdeveloped physical and services infrastructure, and other elements of the local investment
climate. The EPZ incentives seek to attract the much- needed investments.
4. Background and authority for subsidy
This programme was instituted under the Export Processing Zone Act of 1990 in an effort to
attract new investments into the manufacturing sector s, with the objective of increasing export supply
capabilities especially in non-traditional products. The regime was amended in 1994 to make it more
attractive to foreign investors. This was in recognition of the fact that Belize must compete effectively
with other Central American and Caribbean countries for foreign investments.
The programme is currently being implemented under the Export Processing Zone Act,
Chapter 280 of the Laws of Belize (Revised Edition 2000). This incorporates all amendments made to
the regime since 1994.
5. Form of Subsidy
The granted under the EPZ programme take the form of full exemption from import duties
and internal taxes, among other things. For purposes of the SCM Agreement, the applicable subsidies
are exemptions of import duties and internal taxes.G/SCM/N/71/BLZ/Suppl.1
Page 7
The EPZ regime is extremely liberal. There are no import/export duties, import/export
licenses, tonnage taxes, consumption taxes, excise taxes, trade turnover taxes, foreign exchange taxes,
or other taxes, quotas, or regulatory restrictions apply to EPZs. Each business is exempted from
income tax, withholding tax, capital gains tax, or any new corporate tax subsequently adopted by the
Government, for a minimum of the first twenty y ears. Any dividends paid by an EPZ business are
exempted from tax in perpetuity. Also, any net losses incurred over the twenty years tax holiday may
be carried forward and deducted against profit s in the years following the tax holiday period.
The import duty exemption applies to all imports of an EPZ business, including capital
equipment, service and utility vehicles, office furniture, spare parts, raw materials, intermediate goods
and supplies. Fuel entering an EPZ for energy generating purposes shall be included in such
exemption, provided the fuel is not retailed. Note that in practice this facility has been limited todiesel fuel in most cases. This applies for as long as the EPZ business remains active in a Zone of
Special EPZ, and in possession of a valid Certificate of Compliance.
6. To whom and how the subsidy is provided
The benefits (including subsidies) under the programme are open to EPZ developers and EPZ
businesses. The EPZC establishes the developer for each EPZ, and such a developer is entitled to all
exemptions of import duties, taxes, licenses, etc. under the programme. Any private or public party
may establish an EPZ business on property it owns or has leased within the zone, provided it has
applied for and been granted a Certificate of Compliance from the EPZC.  All applications must be
made to the EPZC, which is comprised of representatives of the Ministries of Trade, Labour,Economic Development, and Finance, along with representatives of the Belize Chamber of
Commerce and Industry, the Small Business Sector , EPZ Developers and EPZ Businesses, and two
representatives with suitable knowledge and experience from the industrial sector.
The EPZC may grant such a certificate (under Section 7(3)) to any applicant, where the
proposed business enterprise-
(a) Will produce goods and/or services solely for export sale to buyers who are not
residents of Belize (except that waivers to this are possible under Section 8(3), upon
application);
(b) Will not have a deleterious effect upon the environment; and
(c) Will be conducted in compliance with all applicable legal and regulatory
requirements under the laws of Belize, and all rules and regulations of the Zone
established by the operating authority, and the owner(s) of the business have agreed
to maintain such compliance.
7. Subsidy per unit
This information is not available at this time. No procedures yet in place.
8. Duration of subsidy
As indicated earlier, each business is exempted from income tax, withholding tax, capital
gains tax, or any new corporate tax subsequently adopted by the Government, for a minimum of the
first twenty years. Any dividends paid by an EP Z business are exempted from tax in perpetuity.G/SCM/N/71/BLZ/Suppl.1
Page 8
With respect to import duties and internal taxes,  these apply for as long as the EPZ business
remains in compliance through a valid Certificat e of Compliance, and is terminated when such
certificate is revoked by the EPZC.
9. Statistical data on the impact of the programme
No statistical data exists at this time. Ef forts being made to implement a mechanism to
facilitate future reviews of the operation of this programme.
III. COMMERCIAL FREE ZONE PROGRAMME
1. Description of the programme
The Commercial Free Zone (CFZ) programm e is one under which Commercial Free Zones
may be established in Belize. The programme operates under the Commercial Free Zone Act, Chapter
278 of the Laws of Belize, Revised Edition 2000.
The Act established a Commercial Free Zone Management Agency (CFZMA), with a Board
of Directors comprised of twelve representatives of the public and private sectors. The CFZMA isempowered to designate CFZs, “… wherein investors may establish businesses and conduct trade and
commerce free of the national customs regime. Each CFZ is to be managed by a Chief Executive
Officer appointed by the CFZMA.
The trade or businesses that may be conducted in a CFZ include   manufacturing, commercial
activities, warehousing, professional or other activity, insurance services, financial services, banking
services, offshore financial services and other professional or related services. The programme also
permits simple mixing, packaging, and labeling operations that do not confer origin for purposes of
trade under standard trade agreements.
All merchandise, articles, or other goods th at enter a CFZ for commercial purposes are
exempt from import duties, stamp duties and revenue replacement duties. These exemptions also
apply to imports of fuel and goods, including building materials, furniture, equipment, supplies and
parts required for the proper functioning of a CFZ. The exemptions do not extend to motor vehicles
and fuel for personal use. No quotas or licensing (import/export) requirements apply to EPZ imports.
These provisions apply both to EPZ Developers and EPZ Businesses. Some types of goods are not
allowed to enter a CFZ.
Goods may also be sold into national customs terr itory, but such sales must be wholesale, all
applicable licenses and permits must be provided, and applicable customs duties paid.
Notwithstanding the duty-free status of a CFZ, the Act was amended in 1999 by the addition
of a provision imposing a “social fee” of 1.5 percent on all goods entering a CFZ except fuel, which is
levied at 10 percent. Revenues from the social fee are to be used exclusively for sports and
educational development, and for the provision of health and other social services by the Government.
Five percent of the tax thus collected (per annum) is credited to the CFZMA, for its operational
expenses.
The CFZ tax provides for much lower rates of taxation on chargeable incomes of CFZ
Developers and Businesses. These rates are graduated, and range from 2 percent to 8 percent of
chargeable income (Section 16(1). Tax credits are provided in direct proportion to the number of
Belizean workers employed by each developer or business in a CFZ.G/SCM/N/71/BLZ/Suppl.1
Page 9
To date only one CFZ has been designated (on the Belize-Mexico border), but there are plans
to designate other zones.
2. Period covered by the notification
1999 to 2001
3. Policy objective and/or purpose of subsidy
The main objectives of the programme are to increase manufacturing and processing activities
to generate new products for export markets, and thereby create employment for Belizeans in the
border regions of Belize, as well as generating new business wealth.
4. Background and authority for subsidy
The concept of a commercial free zone was around from the early 1990’s, driven largely by
the need to find alternatives to the traditional export products and markets, and to generate more
employment for a young and growing labour force. The concept of border industrialization was
explored, under technical assistance from Mexico, to establish the feasibility or otherwise of
duplicating the border industrialization prog ramme between the USA and Mexico (i.e. the
maquiladora system). The concept was eventually considered not feasible, and was abandoned.
In 1994 the government appointed a National Economic Advisory Task Force, which put
forward a number of proposals including one for the enactment of legislation for a commercial free
zone. The initial proposal was for only one CFZ on the Belize-Mexico border. That proposal wassubsequently modified to provide for the establishment of a CFZ programme, under which more than
one zone could be designated. The supporting draft legislation was amended accordingly. The
Commercial Free Zone Act was passed in 1994.
The programme is currently being implemented under the Commercial Free Zone Act,
Chapter 278 of the Laws of Belize, Revised Edition 2000. It was recently amended to accommodate
new challenges.
5. Form of Subsidy
The subsidies take the form of full exemption from all import duties and charges, and partial
exemption from internal taxes.
6. To whom and how the subsidy is provided
The benefits under the programme are open to any company legally incorporated, and that
applies for designation as either a CFZ developer of a CFZ business.
The access to the duty-free treatment is facilitated by the customs administration. ?
7. Subsidy per unit
This information is not available.
8. Duration of subsidy
Benefits are automatic for as long as the beneficiaries continue operating in the CFZ.G/SCM/N/71/BLZ/Suppl.1
Page 10
9. Statistical data on the impact of the programme
Data not available.
IV. CONDITIONAL DUTY EXEMPTION SCHEME
1. Description of the programme
This is a programme under which deserving enterprises are granted exemptions of import
duties. Such enterprises include small farmers, and small and micro enterprises, that do not benefit
from subsidies under other available  schemes.
2. Period covered by the notification
1999 to 2001
3. Policy objective and/or purpose of subsidy
The objective of this policy is to provide assistance to small farmers and to small and micro
enterprises that would otherwis e have no access to duty relief.
The purpose is to provide an opportunity for such enterprises to continue operations under
adverse competitive conditions. Such enterprises produce a significant quantity of food and services
for domestic consumption. They are, collectively, the largest contributors to employment creation and
account for close to half of the country’s GDP. It is particularly important for rural enterprises.
4. Background and authority for subsidy
The Conditional Duty Exemptions Scheme ex ists within the framework of the Common
Protective Policy of the Caribbean Common Ma rket (CARICOM), of which the Common External
Tariff (CET) is the primary instrument. In administering the CET, Governments of Member States are
authorized to grant conditional import duty exemp tions on an agreed “List of Items Eligible for
Conditional Duty Exemptions”.  Items on the comp anion “List of Items Ineligible for Conditional
Duty Exemption” require the approval of the Council for Trade and Economic Development
(COTED) for any alteration or suspension of the CET.
Belize exercises its right to grant conditional duty exemptions under authority of the Treaty of
Chaguaramas.
5. Form of Subsidy
The subsidy is limited to full or partial exemption of import duties.
Note that where full or partial exemptions of internal taxes are also granted to the same
applicant in respect of the same import, this is not understood as part of the Caricom policy.
These benefits are not necessarily export subsidies, but to the extent that assistance to this
category of enterprises may result in export trade, Belize would like to ensure that it can continue to
legally use these measures in support of sustainable development goals and objectivesG/SCM/N/71/BLZ/Suppl.1
Page 11
6. To whom and how the subsidy is provided
This is a programme under which import duty and tax exemptions granted to deserving
religious, civil and social cases and institutions, and relief to small and micro enterprises and
agricultural operations that are not benefiting from any of the main incentive programmes.
To access this assistance, a written application to the Ministry of Finance is required,
justifying the request.
7. Subsidy per unit
Data are not available.
8. Duration of subsidy
Once-off exemptions only.
9. Statistical data on the impact of the programme
Not available at this time.
__________
FISCAL INCENTIVES ACT
CHAPTER 54
REVISED EDITION 2000
SHOWING THE LAW AS AT 31 DECEMBER 2000
This is a revised edition of the law, prepared by the Law Revision Commissioner under the authority
of the Law Revision Act, Chapter 3 of the Laws of Belize, Revised Edition 1980-1990.
This edition contains a consolidation of the following laws - Page
ARRANGEMENT OF SECTIONS 3
FISCAL INCENTIVES ACT 4
Amendments in force as at 31 December 2000
CHAPTER 54
FISCAL INCENTIVES ACT
ARRANGEMENT OF SECTIONS
1. Short title
2. Interpretation3. Application for an order
4. Conditions for making an order
5. Date of production
6. Tax holiday
7. Duty exemptionG/SCM/N/71/BLZ/Suppl.1
Page 12
8. Requirements as to goods imported.
9. Assignment of goods imported.
10. Annual report.
11. Revocation.
12. Notice and consequences of revocation.13. Transfer of status.
14. Change of name.
15. Laying of information and complaint
16. Provision for making regulations.
17. Repeals.
The Substantive
Laws of BelizePrinted by the Government Printer,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of BelizeRevised Edition
2000
CHAPTER 54
FISCAL INCENTIVES
CAP.45,
R.E. 1980-1990.6 of 1990.20 of 1996.
3 of 2000.
[17th April]
Short title 1. This Act may be cited as the Fiscal Incentives Act.
Interpretation 2. In this Act, unless the context otherwise requires:-
“approved enterprise” means an enterprise or undertaking in
respect of
which an approved enterprise order has been made under this
Act;
“approved enterprise order” means an order made under
section 4 including
any amendment thereto made from time to time;“approved product” means a product approved by the
Minister for production or manufacture by an approved
enterprise;
“approved service” means a service approved by the Minister
provided by an approved enterprise;
CAP.250. “company” means a company formed and registered underthe Companies Act;G/SCM/N/71/BLZ/Suppl.1
Page 13
“Comptroller” means the Comptroller of Customs;
“date of production” means the date specified in the approved
enterprise order by which the enterprise shall have
commenced production;
“duty exemption period” means the period during which an
enterprise enjoys the relief granted under section 7;
“Executive Chairman of BELTRAIDE” means the Executive
Chairman of the Belize Trade and Development Investment
Service appointed pursuant to section 7 of the Belize Trade
and Development Investment Service Act;
“income tax” means any tax on income or profits;
“industry” means a manufacturing or processing industry and
includes agriculture, aquaculture, forestry and fisheries;3 of 2000.
CAP.282.
“Member State” means a State listed in the Schedule hereto; Schedule.
“Minister” means the Minister responsible for Investment;
“national” means a citizen of any Member State and includes
a person who by virtue of some law of a Member State
relating to immigration is deemed to belong to that State;
“rule of origin” means the criteria as defined in Article 14
and Schedule II of the Annex to the Treaty of Chaguaramas
establishing the Caribbean Community and any amendments
made thereto from time to time;
“tax holiday period” means the period during which an
enterprise enjoys the relief granted under section 6.
3.-(1) Any person desirous of establishing or conducting an
enterprise in Belize may apply to the Minister through the
Executive Chairman of BELTRAIDE for an approvedenterprise order in relation to the proposed enterprise and
shall furnish to the Executive Chairman of BELTRAIDE in
support of his application-Application for an
order.3 of 2000
(a) particulars as to the nature of the enterprise and the
contribution which it is expected to make to the economy;
(b) the estimated amount, purpose and source of the capital to
be expended, initially and annually, during the period of the
approved enterprise order;
(c) where applicable, particulars necessary to determine
whether the product meets the rule of origin;
(d) where applicable, particulars necessary to determine the
level of exports, foreign exchange earnings or foreignexchange savings;G/SCM/N/71/BLZ/Suppl.1
Page 14
(e) the number of persons to be employed and the conditions
of service;
(f) the date on or before which-
(i) work on the enterprise will commence;
(ii) the enterprise will produce a marketable product;
(g) information satisfactory to the Minister that the enterprise
is adequately financed and provided with effective and
competent management;
3 of 2000. (h) such other information as the Executive Chairman ofBELTRAIDE may require.
Fees payable. (2) Every application made under subsection (1), and everyapplication for renewal made under section 6 (1) and section
7 (1), shall be accompanied by the fees specified below:
Investment of not less than $250,000 and not exceeding
$500,000 - $5,000;
Investment of not less than $500,000 and not exceeding
$750,000 - $6,000;
Investment exceeding $750,000 - $7,000:Provided that a “Belizean Company” as defined in subsection
(3) below with investment of less than $250,000 may apply
under this section without the payment of any fee.
(3) For the purpose of subsection (2) of this section a
“Belizean Company” means a company in which Belizean
nationals own not less than fiftyone per cent of the share
capital.
(4) The Minister may from time to time, by order published
in the Gazette, amend the scale of fees payable under thissection.
(5) Every order made by the Minister under the proviso of
subsection (2) shall as soon as may be after the making
thereof be laid before the National Assembly and shall be
subject to negative resolution.
4.-(1) If the Minister is satisfied that-
Conditions of
making an order.
(a) a company has been incorporated in Belize which will
establish or conduct the enterprise in respect of which anapplication has been made under section 3;
(b) the enterprise will be beneficial to the economy of Belize;
and
(c) it is expedient in the public interest to do so, he may byG/SCM/N/71/BLZ/Suppl.1
Page 15
order declare the enterprise to be an approved enterprise.
(2) Before making an order, the Minister shall-(a) cause a notice to be published in two issues of a
newspaper circulating in Belize at an interval of not less than
one week between each issue and in one issue of the Gazette,
containing sufficient information relating to the enterprise,
and inviting any person who objects to the making of such an
order to give notice of his intention to object within the
period specified in the notice, and thereafter to submit in
writing his objections and the supporting evidence withinfourteen days of his notice of objection to the Executive
Chairman of BETRAIDE;
3 of 2000.
(b) consider any objections received pursuant to the notice.
(3) Such order shall set out the conditions subject to which it
has been made.
(4) No such order shall be granted for an enterprise the
products of which are destined for the domestic or Caricommarket unless the products satisfy the rule of origin as
defined in section 2.
Date of production. 5. Every order made by the Minister under section 4 shall
specify the date of production of the approved enterprise,which shall be the date not more than five years after the date
of the approved enterprise order by which date the Minister
has reasonable cause to believe the enterprise should be
established and be in commercial production or operation:
Provided that, in the case of any such order in respect of any
enterprise that is at the date of the order already established
and in commercial production or operation, the date of
production shall be the date of the approved enterprise order.
Tax holiday.
20 of 1996.6.-(1) (a) Subject to subsection 9 and to paragraph (b) of this
subsection, every order made by the Minister under section 4shall specify-
(i) the duration of the tax holiday period, which shall
normally be of not more than five years duration
commencing from the date of production; and
(ii) the annual percentage rates at which the profits and gains
of the approved enterprise shall be exempt from the payment
of income tax under the Income and Business Tax Act during
the tax holiday period:
Provided that the Minister may, in a fit and proper case, on
application made by the company, review its operations and
renew its tax holiday period for a further term not exceedingG/SCM/N/71/BLZ/Suppl.1
Page 16
ten years.
(b) In the case of a company which is engaged in agriculture,
agro- industry, food-processing, mariculture or
manufacturing and whose operation is highly labour intensiveand whose production is strictly for export, the tax holiday
period may be for a maximum of twenty-five years.
(2) During the tax holiday period, all profits and gains
accruing to the approved enterprise and arising from the
production of the approved product or service shall be
partially exempt from income tax under the Income andBusiness Tax Act, at the annual percentage rates specified by
the Minister as provided in subsection (1)(a)(ii) above.20 of 1996.
CAP.55.
(3) If the end of the tax holiday period does not coincide with
the end of the financial year of the approved enterprise, theincome attributable to the tax holiday period only shall be
exempt from income tax at the annual percentage rates
specified by the Minister as provided in subsection (1)(a)(ii)
above.20 of 1996.
(4) Subject to the limitations contained in subsections (5)and (6), where an approved enterprise is conducted by a
company, any dividends or other profits arising out of such
enterprise-
(a) during the tax holiday period of such enterprise;
and
(b) paid to shareholders during the said period, on
shares issued during such period,
shall not be taken into account in ascertaining the chargeable
income of such shareholders.
(5) The provisions of subsection (4) shall only apply where
the total amount of dividends or profits paid to a shareholder,
as therein mentioned, does not exceed an amount which isequivalent to the total amount invested by the shareholder in
the approved enterprise during its tax holiday period.
(6) The provisions of subsection (4) shall not apply to any
shareholder who would become liable by the laws of hiscountry of residence to pay additional income tax owing to
the fact that the dividend he received hereunder was not
subject to income tax in Belize.
(7) An approved enterprise enjoying partial relief from
income tax shall, notwithstanding the relief granted, be
subject in all other respects to the provisions of the Income
and Business Tax Act, including the filing of annual returns.20 of 1996.
19 of 1998.CAP. 55.G/SCM/N/71/BLZ/Suppl.1
Page 17
20 of 1996.
CAP.55.
19 of 1998.(8) To the extent that an approved enterprise is partially
exempt from income tax during a tax holiday period at the
rates specified by the Minister as provided in subsection
(1)(a)(ii) above, the approved enterprise shall be deemed to
be a specified development industry or project for thepurpose of the Income and Business Tax Act.
(9) Notwithstanding the provisions of this section it shall be
open to the Minister to order that no tax holiday shall be
granted to an enterprise under this Act.
Duty exemption. 7.-(1) (a) Subject to subsection (4) and to paragraph (b) ofthis subsection, every order made by the Minister under
section 4 shall specify the duty exemption period which shall
be of not more than fifteen years duration commencing from
the date of the approved enterprise order, provided that the
Minister may, in the case of an export enterprise, onapplication made by the company, review its operations and
renew the duty exemption period for a further term not
exceeding ten years.
(b) In the case of a company which is engaged in agriculture,
agroindustry, food-processing, mariculture or manufacturing
and whose operation is highly labour intensive and whose
production is strictly for export, the duty exemption period
may be for a maximum of twenty-five years.
(2) Subject to subsection (3), during the duty exemption
period, every company granted an approved enterprise order
may import into Belize, free of customs duty and stamp duty-
(a) all building materials, plant, machinery, equipment, tools
including specialist hand tools (but not including other hand
tools), utility and transport vehicles, fixtures and fittings,office equipment, and appliances;
(b) spare parts on plant and plant related machinery and
agricultural machinery;
(c) any raw materials or other items imported for use in the
approved enterprise, 20 of 1996.
upon production to the Comptroller of a certificate issued by
the Executive Chairman of BELTRAIDE Secretary that sucharticles or materials are necessary for the establishment or
expansion and conduct of the approved enterprise, and upon
such terms and conditions as may be specified in the
certificate.3 of 2000.
(3) Except in the case of an export enterprise exporting tonon-Caricom countries, no duty exemption shall be granted
for any raw materials or articles which are available in Belize
or in any Member State provided that they are of comparableG/SCM/N/71/BLZ/Suppl.1
Page 18
quality and price.
(4) Notwithstanding the provisions of this section it shall be
open to the Minister to order that no duty exemption shall be
granted to an enterprise under this Act.
8. The enterprise importing articles under section 7 above
shall-Requirements as to
goods imported.
(a) keep a record in such form and containing such particulars
as may be required by the Comptroller of the articles so
imported;
(b) cause the articles to be marked with such mark and in
such manner as may be required by the Comptroller;
(c) permit the Comptroller or any person authorised by him at
any reasonable time to inspect such record and to examine
any such article for the purpose of satisfying himself of the
accuracy of the particulars in the record in relation to the
article.
9.-(1) No article imported under this Act into Belize free of
import duty, stamp duty or revenue replacement duty shall be
sold, hired, lent, given away or otherwise disposed of except-Assignment of goods
imported.
(a) in case of an assignment of an enterprise, to the as signee
thereof; or
(b) after payment of import duty, stamp duty and revenue
replacement duty on the value of the article at the date of the
transaction assessed by the Comptroller; or
(c) after expiry of ten years from the date of importation.(2) An enterprise which contravenes or fails to comply with
any of the provisions of this section shall be guilty of an
offence and shall be liable upon summary conviction to a fine
equal to treble the market value of the goods as assessed bythe Comptroller of Customs or to a fine of five thousand
dollars, whichever is the greater, and in every such case the
goods in respect of which the offence was committed shall be
forfeited.
Annual report.
3 of 2000.10.-(1) During the duty exemption period there shall be
submitted to the Executive Chairman of BELTRAIDE,
within three months of the close of each financial year of the
approved enterprise, a report in writing on the conduct and
progress of the approved enterprise during the past financialyear together with the annual accounts for that year duly
audited by a Chartered Accountant.
(2) The accounts shall contain particulars-G/SCM/N/71/BLZ/Suppl.1
Page 19
(a) as to capital expended on the enterprise and depreciation
of the capital assets during the financial year in question;
3 of 2000. (b) relating to the enterprise which the Executive Chairmanof BELTRAIDE may require.
Penalty. (3) An enterprise which fails to furnish the reports and annual
accounts as required under this section shall be liable to pay
to the Government a penalty of two thousand dollars (or such
lesser figure as may be determined by the Minister on the
facts of the particular case), and the failure to pay the amountso specified may result in the revocation of the concession.
Revocation. 11.-(1) If the Minister is satisfied that the enterprise has
contravened any of the provisions of this Act or a regulation
made thereunder, and in particular as to the fact that-
(a) there has been undue delay in the commencement of an
approved enterprise; or
(b) the approved enterprise is not being conducted in
accordance with the terms of the application for an order
under section 3 or of the order under section 4; or
(c) the information furnished in the application for an order is
false in a material particular,
he may give a written notice to the approved enterprise to
show cause within such period as may be specified, but not
less than thirty days, as to why the approved enterprise order
should not be revoked and, if the Minister is not satisfied bythe explanation, if any, given by the approved enterprise he
may in his discretion revoke the approved enterprise order.
(2) Notwithstanding the previous subsection (1), the Minister
may, at the written request of an approved enterprise, revoke
the approved enterprise order whether or not there was a
breach of the terms and conditions of the order or any otherdefault on the part of the approved enterprise.
12.-(1) When an approved enterprise order has been revoked
the Minister shall cause a notice to that effect to be published
in the Gazette and the order shall state the date on which theenterprise shall cease or shall have ceased to be an approved
enterprise.Notice and
consequences ofrevocation.
(2)Upon revocation the approved enterprise shall be liable to
pay customs duty, stamp duty and revenue replacement dutyon such of the articles, as the Minister of Finance may
decide, imported by the approved enterprise free of those
duties, such duties being based on the value of the articles at
the date of revocation assessed by the Comptroller.G/SCM/N/71/BLZ/Suppl.1
Page 20
(3) The duties payable under subsection (2) may be recovered
the Comptroller in the manner provided under any law
relating to customs and excise duties.
(4) If the date on which the approved enterprise order ceases
to be an approved enterprise does not coincide with the end
of the financial year of the enterprise, then the chargeable
income in respect of the financial year in which the order is
revoked shall be subject to tax under the Income and
Business Tax Act as if no approved enterprise order had been
made in respect of that year and such tax shall be recoverableaccordingly.CAP.55.
19 of 1998.
13.-(1) The Minister may, by notice published in the Gazette,
transfer the status of an approved enterprise granted under
this Act to another company where-Transfer of status.
(a) the approved enterprise merges with or is taken over byanother company, or forms part of another company’s
reconstruction; and/or
(b) in his opinion it is equitable or in the public interest to do
so.
(2) Prior to the issue of a notice pursuant to subsection (1),
the Minister shall require the company, to which the status ofapproved enterprise is to be transferred, to give an
undertaking to comply with the conditions as set out in the
order granted under section 4.
(3) On the issue of a notice pursuant to subsection (1), all the
rights, privileges, benefits, immunities, duties and obligations
conferred or imposed by or under this Act on the approved
enterprise may be transferred to the other company.
Change of name.
3 of 2000.14.-(1) Where an approved enterprise changes its corporate
name, that enterprise shall, within fourteen days of the date of
such change, inform the Executive Chairman ofBELTRAIDE in writing of its new corporate name.
(2) On receipt of such information the Minister may, by
notice published in the Gazette , direct that any orders,
licences or documents issued to or in respect of that approvedenterprise under or pursuant to the provisions of this Act be
altered to indicate the new corporate name.
Laying of
information and
complaint.
3 of 2000.15. An information or complaint in respect of an offence
under this Act may be laid by the Executive Chairman of
BELTRAIDE or by any other person authorised in writing bythe Executive Chairman of BELTRAIDE in that behalf.
Provision for making
regulations.16.-(1) The Minister may make such regulations as may be
necessary for giving effect to the provisions of this Act.G/SCM/N/71/BLZ/Suppl.1
Page 21
(2) Any regulations made pursuant to subsection (1) of this
section shall be laid before the National Assembly as soon as
may be after the making thereof and shall be subject to
negative resolution.
Repeals.
CAP. 40,
R.E. 1980-1990.32 of 1973.17.-(1) The Development Incentives Act and the Fiscal
Incentives (Industrial Enterprises) Act are hereby repealed.
(2) Notwithstanding subsection (1), any development order or
approved enterprise order granted under the Development
Incentives Act or under the Fiscal Incentives (Industrial
Enterprises) Act shall be deemed to have been granted under
this Act, and every such order shall be subject to all rights,privileges, benefits and obligations conferred or imposed by
or under this Act.CAP. 40,
R.E. 1980-1990.32 of 1973.
SCHEDULE
[Section 2]
Member States
Antigua and Barbuda
Barbados
Belize
Dominica
Grenada
Guyana
Jamaica
Montserrat
St. Christopher and Nevis
St. Lucia
St. Vincent and the Grenadines
Trinidad and Tobago
Any other state in the Caribbean region that becomes a
member of the Caribbean Single Market and Economy.
_______________G/SCM/N/71/BLZ/Suppl.1
Page 22
COMMERCIAL FREE ZONE ACT
CHAPTER 278
REVISED EDITION 2000
SHOWING THE LAW AS AT 31 DECEMBER 2000
This is a revised edition of the law, prepared by the Law Revision Commissioner under the authority
of the Law Revision Act, Chapter 3 of the Laws of Belize, Revised Edition 1980-1990.
This edition contains a consolidation of the following laws - Page
ARRANGEMENT OF SECTIONS 3
COMMERCIAL FREE ZONE ACT 5
Amendments in force as at 31 December 2000
CHAPTER 278
COMMERCIAL FREE ZONE ACT
ARRANGEMENT OF SECTIONS
PART I
Preliminary
1. Short title.
2. Interpretation
PART II
Establishment, Functions, etc., of the Commercial Free Zone
Management Agency (CFZMA)
3. Establishment of the CFZMA.
4. Board of Directors of the CFZMA.
5. Functions of the CFZMA.
6. Designation of CFZs.
7. Appointment and functions of the Chief Executive Officer.8. CFZ developers.
9. Powers and responsibilities of CFZ developers.
PART III
Commercial Activities, Tax Regime, etc., of Commercial
Free Zones
10. Establishment of wholesale and retail businesses.
11. Applications for operation within a CFZ.
12. CFZ imports and exports.
13. Social fee.
13. Sales within a CFZ.14. CFZ regulatory regime.G/SCM/N/71/BLZ/Suppl.1
Page 23
15. CFZ tax regime.
16. CFZ labour regime.
PART IV
General
17. Enforcement and liabilities.
18. Regulations.
19. Commencement.
The Substantive
Laws of BelizePrinted by the Government Printer,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.Revised Edition
2000
CHAPTER 278
COMMERCIAL FREE ZONE
[8th February 1995]27 of 1994.
20 of 1998.
43 of 1999.Commencement[18. 3. 1995]
S.I. 30 of 1995.
PART I
Preliminary
1. This Act may be cited as the Commercial Free Zone Act. Short title.
2. In this Act, unless the context otherwise requires:- Interpretation.
“Chief Executive Officer” or “CEO” means the Chief
Executive Officer of a CFZ;
“Commercial Free Zone” or “CFZ” means a geographic area
in Belize designated as such by the CFZMA under section 6of this Act wherein investors may establish businesses and
conduct trade and commerce free of the national customs
regime;
“Commercial Free Zone business” or “CFZ business” means
a private or public party which has been granted approval to
operate such a business under this Act and any regulations
and which conducts a trade or business, including but not
limited to manufacturing, commercial, office, warehousing,
professional or other activity, primarily within anyCommercial Free Zone established under this Act or any
regulations;
“Commercial Free Zone Management Agency” or “CFZMA”
means the agency established under section 3 of this Act;“Commercial Free Zone developer” or “CFZ developer”
means any person, private or public, who has been issued aG/SCM/N/71/BLZ/Suppl.1
Page 24
Certificate of Designation by the CFZMA under regulations
and who is thereby authorized to develop certain
infrastructures within a CFZ and charge fees for its property
and services;
“domestic Belizean business” means any non-foreign
individual, partnership, corporation, or other entity
conducting a trade or business within Belize which is not a
Commercial Free Zone business;
CAP.280.“Export Processing Zone” or “EPZ” shall have the meaning
assigned to it under the Export Processing Zone Act;
43 of 1999.
CAP.4.“Minister” means the Minister to whom the responsible for
Commercial Free Zones is for the time being assigned by the
Governor-General under section 41 of the Constitution;
“national customs territory” means any areas within Belize
which are located outside of a CFZ or an EPZ and which are
subject to the national customs and excise law;
“public party” means any agency of the Government of
Belize;
“private party” means any individual, partnership, company,
corporation, or other entity, domestic or foreign, which is not
a government agency or owned in any part by a governmentagency;
“public service” means any service which has been provided
in Belize by the Government of Belize or any of its agencies;
“regulations” means regulations made under this Act.
PART II
Establishment, Functions, etc., of the Commercial Free Zone
Management Agency (CFZMA)
3. A Commercial Free Zone Management Agency, (also to be
known as the “CFZMA”) is hereby established which shall
be a body corporate with perpetual succession and a common
seal, and with powers as such to enter into contracts, to sue
and be sued by law in its corporate name and which may forall purposes be described by such name; to acquire, hold,
mortgage, lease and dispose of all kinds of properties,
moveable and immovable, and to do and perform such acts
and things as bodies corporate may by law do and perform
subject to the provisions of this Act.Establishment of the
CFZMA.
4.-(1) There shall be a Board of Directors of the CFZMA
which, subject to the provisions of this Act, shall be
responsible for the policy and general administration of theBoard of Directors of
the CFZMA.G/SCM/N/71/BLZ/Suppl.1
Page 25
affairs of the CFZMA.
(2) The Board of Directors shall comprise the following
members:
(a) one representative of the Ministry responsible for Trade
and Industry;
(b) one representative of the Ministry of Finance;
(c) one representative of the Ministry responsible for
Tourism;
(d) one representative of the Ministry of Economic
Development;
(e) the Comptroller of Customs or his representative; 43 of 1999.
(f) a representative of the Ministry responsible for Labour; 43 of 1999.
(g) four free zone representatives elected by the members of
the CFZ developers and CFZ businesses;
(h) one representative of the Belize Chamber of Commerce
and Industry; and
(i) the Chief Executive Officer appointed under section 7 of
this Act, who shall have no right to vote.
43 of 1999. (3) On the commencement of this Act and thereafter duringthe month of January in each year, the Minister shall appoint
one of the members of the Board to be the Chairman and the
members shall elect one of their number to be the DeputyChairman of the Board
1.
(4) The Chairman shall preside at all meetings of the CFZMA
and in his absence the Vice-Chairman shall preside.
(5) The CFZMA shall meet at least once every two months
on a date and at a time set by the Chairman of the CFZMA orat the request of two or more members thereof.
(6) The quorum of the CFZMA shall be five members.
43 of 1999. (7) The decisions and resolutions of the Board shall be by a
majority of the members present and voting, and in the event
of an equality of votes, the person presiding at the meeting
shall have a second and casting vote in addition to his
original vote1.
43 of 1999. (8) The representatives of the CFZ developers and CFZbusinesses appointed under paragraph (g) of subsection (2)
                                                     
1 This provision was added by Act 43 of 1999.G/SCM/N/71/BLZ/Suppl.1
Page 26
above shall hold office for a period of two years but may be
re-elected.
(9) Subject to the provisions of this Act and any regulations,
the CFZMA may regulate its own procedure.
5.-(1) The functions of the CFZMA shall be as follows: Functions of the
CFZMA.
(a) to designate Commercial Free Zones in accordance with
this Act and any regulations, based on the need for economic
development in the proposed CFZ area, and the viability of
such designation in creating direct and indirect employment
and other considerations of public interest;
(b) to designate retail duty free areas within a CFZ;(c) to recommend to the Minister policies, plans, and
programmes to further develop Commercial Free Zones;
(d) in the case of a public-sector managed CFZ, to
recommend an annual budget and plans for such CFZ;
(e) to carry out all functions and discharge responsibilities
assigned under this Act and any regulations;
(f) to review and approve the annual budget, programme and
functions of a CFZ submitted by the CEO of a CFZ;
(g) to recommend the expansion of any CFZ;(h) to issue Certificates of Designation to CFZ developers in
accordance with this Act and regulations.(2) Any investor whose CFZ business application is not
approved by the CEO shall have a right of appeal to the
CFZMA.
(3) Notwithstanding subsection (1) above, the Minister may,
if he considers it expedient and with the approval of the
Cabinet, designate any area in Belize to be a commercial freezone for the purposes of this Act and every such designation
shall have the same effect as if made by the CFZMA and
shall be subject to negative resolution of the National
Assembly.20 of 1998.
Designation of CFZs. 6.-(1) The CFZMA shall establish by regulations, the
procedure by which public or private parties may apply for
CFZ designation.
(2) The designation of a CFZ shall be by a two-thirds
resolution of all members of the Board of Directors of the
CFZMA.
(3) The designation of a CFZ shall be subject to negativeG/SCM/N/71/BLZ/Suppl.1
Page 27
resolution of the National Assembly.
Appointment and
functions of the
Chief Executive
Officer.7.-(1) The CFZMA shall appoint a suitably qualified person
as the Chief Executive Officer of a CFZ.
(2) The functions of the Chief Executive Officer shall be to -
(a) attend to the daily management of the business activities
of CFZs in accordance with this Act and the rules and
regulations governing CFZs and to carry out the instructions
of the CFZMA;
(b) recruit, supervise and dismiss staff;(c) formulate loan requests for the CFZMA and an annual
budget with plans and programmes for presentation to and
approval by the Board of Directors of the CFZMA;
(d) prepare periodic reports and an annual report, including a
statement of the accounts of the CFZMA audited annually byan auditor appointed in each year by the CFZMA, as required
by the CFZMA to be presented to the CFZMA and the
Ministry responsible for Trade and Industry;
(e) execute decisions and resolutions made by the CFZMA,
including but not limited to the purchase, sale and disposal of
properties and assets of the office of the CFZMA;
(f) contract the services of management or technical experts
on matters of organization and operations of a CFZ;
(g) issue permits for the entry and exit of persons, goods and
services to and from CFZ premises;
(h) issue Certificates of Compliance to CFZ businesses
operating within CFZs;
(i) collect fees and charges as imposed under this Act, the
regulations, or by the CFZMA;
(j) issue Certificates of Origin to those businesses operating
within a CFZ;
(k) approve and disapprove applications for Certificates of
Compliance and ensure that all building and landscape plans
within a CFZ comply with the national codes and Laws of
Belize;(l) carry out any other responsibilities that may be assigned
by the CFZMA.
(3) For the purpose of this section, “Certificate of Origin”
means the documentation issued by the CFZMA or anyG/SCM/N/71/BLZ/Suppl.1
Page 28
authorized agency in Belize for the purpose of import and
export trade, designating goods and services as originating
from Belize.
CFZ developers. 8.-(1) A CFZ developer may be one or more private or publicincorporated entity.
(2) A CFZ developer shall obtain a Certificate of Designation
from the CFZMA in accordance with this Act and any
regulations.
Powers and
responsibilities ofCFZ developers.9. A CFZ developer shall have power to:
(a) lease or sell land to private parties which have secured an
approved application from the CEO;
(b) make improvements, construct facilities and develop
infrastructure to enhance a CFZ’s economic development;
(c) provide public or other services within a CFZ;(d) construct roads, drains, railways, airports, ports, wharves,
docks, places of embarkation and disembarkation, stations to
transit passengers and merchandise, or loading and unloading
docks which shall facilitate trade within a CFZ and with a
CFZ and international trading parties;
(e) charge fees for any services or facilities it provides within
a CFZ;
(f) adopt rules and regulations within a CFZ to promote the
safe, efficient and successful operation of a CFZ business,consistent with this Act and any regulations and any other
laws;
(g) promote and advertise CFZs to prospective investors,
business owners and operators and promote CFZs abroad toincrease sales for clients;
(h) provide adequate services and facilities in accordance
with the recommendations of the CFZMA;
(i) conduct other activities authorised under this Act or any
regulations.
PART III
Commercial Activities, Tax Regime, etc., of Commercial
Free Zones
10. Any private or public party or group of parties may
Establishment ofG/SCM/N/71/BLZ/Suppl.1
Page 29
establish wholesale and retail businesses on property it owns
or has leased within a CFZ, provided that it has secured
approval from the CEO, to establish such businesses in the
areas designated for that purpose.wholesale and retail
businesses.
11.-(1) Any public or private party desirous of operating in a
CFZ shall submit an application to the CEO for review and
approval in accordance with this Act and any regulations.Applications for
operation within
a CFZ.
(2) The CEO may approve an application submitted under
subsection (1) above if the proposed business enterprise:-
(a) will conduct trade and investment activities such as a
commercial office, warehouse, manufacturing, insurance
services, financial services, banking services, offshore
financial services and other professional, or related activities;
(b) will not have a deleterious effect on the environment
having regard to any environmental impact assessment made
for the purpose;
(c) will be conducted in compliance with all applicable legal
and regulatory requirements under the Laws of Belize and all
the rules and regulations of a CFZ established by the
operating authority.
(3) Private and public parties shall operate only within the
CFZ in which they have been authorized to operate.
(4) Businesses which operate within the national customs
territory shall not be permitted to operate within a CFZ.
CFZ imports and
exports.12. (1) All merchandise, articles, or other goods entering a
CFZ for commercial purposes shall be exempt from import
duties, stamp duties and revenue replacement duties.
(2) All fuel and goods, including building materials,
furniture, equipment, supplies and parts required for the
proper functioning of a CFZ business shall likewise beexempt from all duties and taxes and charges referred to in
subsection (1) above.
(3) Motor vehicles and fuel for personal use entering a CFZ
shall not be exempted from the taxes and duties referred toabove.
(4) No quotas upon any article, item, or good shall apply to
imports or exports of a CFZ business.
(5) The provisions of subsections (1) to (4) of this section
shall apply mutatis mutandis to CFZ developers.
(6) The following goods shall no t be allowed to enter a CFZ:G/SCM/N/71/BLZ/Suppl.1
Page 30
(a) goods which are prohibited by law to enter a CFZ;
(b) arms and ammunition for commercial purposes;
(c) merchandise not approved for sale by the CFZMA; and
(d) goods and articles which are not required for the
commercial functioning of a CFZ.
(7) Where a CFZ business operating in a CFZ is exempt from
taxes and duties mentioned in this section, the CFZMA shallexercise responsibility and control, in accordance with
regulations, over all such goods and merchandise allowed to
enter a CFZ.
(8) Merchandise destined for a CFZ shall be taken from its
port of entry in sealed containers to the CFZ where they shall
be inspected by customs authorities to ensure that:
(a) they do not contain prohibited items or materials; and
(b) the goods are accompanied by appropriate documentation.
(9) All merchandise entering a CFZ shall be consigned to a
person or firm established in a CFZ.
(10) No imports or exports by a CFZ business shall require
an import or export licence.
(11) All imports and exports of a CFZ to or from whatever
destination shall be exempt from all customs duties,consumption taxes, excise taxes, export duties, in transit
taxes or export taxes, except those destined for and directly
entering areas subject to the national customs territory.
(12) All exports from a CFZ to the national customs territory
shall be subject to duties under the national customs regime,
provided that such duties shall be based on the original valueof the imported parts or products before assembling,
remixing, relabelling, processing, manufacturing or any other
similar activity.
(13) Merchandise warehoused in a CFZ may be wholesaled
or retailed for:
(a) sales to diplomats of other countries who under customary
and conventional international law are exempt from payment
of duties;
(b) sales to ships that dock at ports in Belize and are destined
for other foreign ports;
(c) sales for direct export whether by sea, air or land,G/SCM/N/71/BLZ/Suppl.1
Page 31
provided that such merchandise arrive at the port of exit
under customs control;
(d) entry into national customs territory, provided the goods
are sold wholesale, and the import licence if so required, issecured and the customs duties paid;
(e) entry into national customs territory, provided that the
goods are sold retail in operations which have licences to sell
duty-free to residents and non-residents who are leaving the
country and have submitted proof of departure. Such duty-
free retail goods shall be delivered to the buyers at a port ofexit or embarkation.
(14) The removal of merchandise from a CFZ for sale to
national customs territory or to ships in transit may be
effected at any day or time convenient to the CustomsDepartment.
(15) Merchandise may be sold inside a CFZ from one
business to another, provided that a proper record is kept of
such transactions.
(16) CFZ businesses shall be required to submit a detailed
account of inventories, record of all transfers and destruction
of goods and a record of sales on a monthly basis to the
office of the CEO. In special cases, the CEO may deem itnecessary to have an inventory account, sales and transfer
record prepared on demand and these records may also apply
to CFZ activities.
(17) Merchandise may remain in a CFZ for an unlimited
period of time, provided that they are non-perishable and are
warehoused in places and under conditions suitable for such
merchandise.
(18) The Health Department may require the CEO to remove
any particular merchandise from a CFZ, which pose a threat
to public health and safety.
(19) All CFZ businesses and CFZ developers shall notify the
CEO and Customs Department of all their exports from a
CFZ.
13.-(1) Notwithstanding any provision of this Act or any
other law to the contrary, there shall be charged the following
social fee on the value of goods and services imported into a
CFZ:-Social fee.
43 of 1999.
(a) all goods other than fuel..........................1 1/2%;
(b) fuel........................................................   10%.G/SCM/N/71/BLZ/Suppl.1
Page 32
(2) The Comptroller of Customs shall be responsible for
collection of the social fee levied on imports under this
section.43 of 1999.
(3) For the purpose of collecting and enforcing the paymentof the social fee levied under this section, the Customs
Regulation Act and any Regulations made thereunder relating
to the importation of goods shall apply in the same manner as
if the fee were a duty of customs.43 of 1999.
CAP.49.
43 of 1999. (4) The social fee levied under this section becomes due and
payable at the time when the goods are entered and is theliability of the importer.
43 of 1999. (5) The social fee levied under this section shall be used
exclusively for sports and educational development, and for
the provision of health and other social services by theGovernment.
Sales within a CFZ. 14.-(1) No licence shall be required for the sale of any goods
or articles or services provided within a CFZ.
43 of 1999.(2) A CFZ business shall, if so required by the vendor, payfor any article, item, material, good or service in any
currency prescribed by the Central Bank of Belize under
section 15(2) (a) below.
(3) No price controls imposed under any law shall apply to
the sale of any such article, good or service sold or supplied
under subsection (1) above.
(4) The Customs Department and the CEO may require a
CFZ business to furnish such information about imports,
exports and other transactions occurring within a CFZ as may
be reasonably necessary to exercise regulatory control over
CFZ activities.
(5) A CFZ business which is required to furnish information
in accordance with subsection (4) above, shall comply withsuch request without undue delay and shall cooperate fully
with the Customs Department and the CEO in the proper
discharge of their regulatory functions.
CFZ regulatory
regime.15.-(1) No person shall be allowed to ordinarily reside within
a CFZ except in certain cases and with the written permission
of the CEO.
CAP.52. (2) Notwithstanding anything contained in the Exchange
Control Regulation Act or regulations made thereunder:-
(a) the currency to be used within a CFZ shall be that
prescribed by the Central Bank of Belize;43 of 1999.G/SCM/N/71/BLZ/Suppl.1
Page 33
(b) no Government charges and taxes shall be made on the
use of foreign currency within a CFZ;
(c) each CFZ business shall open an account in any currency
prescribed by the Central Bank of Belize under paragraph (a)above with a duly registered bank of its choice which is
located in the CFZ.43 of 1999.
(3) A CFZ business shall furnish to the CEO and the Central
Bank of Belize a monthly report of transactions in its foreign
currency accounts.
(4) No trade licence shall be required to conduct a CFZ
business other than the written approval of the CEO obtained
in accordance with this Act and the regulations, and the
Trade Licencing Act shall not apply to a CFZ business. CAP.66.
(5) Banks and financial institutions which are licenced underthe Laws of Belize shall be allowed to operate within a CFZ,
but their transactions shall be limited to only CFZ businesses.
(6) The Rent Restrictions Act shall not apply to a CFZ
business or to rental of property within a CFZ.CAP.195.
(7) A CFZ business shall not be restricted to purchasing any
good or service from a particular company or entity or any
group of companies or entities, provided that beforeconsidering independent utility services, the option for the
provision of such services shall be offered to the existing
providers of utility services in Belize based on quality,
competitiveness and rates offered for such services.
(8) An exclusive franchise to sell any particular good or
service shall not be granted within a CFZ.
(9) Every CFZ business shall submit a detailed account of its
full inventory in whole or in part to the CEO within one week
from the last day of every month or upon request by the CEO
and such an account shall include all records of entry, sales,destruction and transfers of such inventory.
(10) No restrictions shall be placed on the transfer of
investment of any CFZ business within a CFZ.
(11) No CFZ business shall be restricted to investing in anyother CFZ business in its purchase of stocks or bonds and the
sale of stocks and bonds of any CFZ business shall be
registered at the General Registry and a certified copy of the
company certificate and articles of memorandum shall be
furnished to the CEO.
CFZ tax regime.
CAP.55.16.-(1) Notwithstanding anything contained in the Income
and Business Tax Act, there shall be levied on the chargeable
income of every CFZ developer and CFZ business within aG/SCM/N/71/BLZ/Suppl.1
Page 34
CFZ, an income tax at the following rates-
(a) up to BZ$15,000.00 of total chargeable income... 2%;(b) over BZ$15,000.00 and up to BZ$30,000.00 of total
chargeable income ..............................................        4%;
(c) over BZ$30,000.00 and up to $ 100,000.00 of total
chargeable income ..............................................        6%;
(d) over BZ$100,000.00 of total chargeable income.. 8%.
(2) In the computation of income tax under this section, there
shall be given tax credits in accordance with the number of
Belizean workers employed on a continuing basis by every
CFZ developer or CFZ business in accordance with the
following scale:
(a) from 10 to 30 Belizean workers employed ............ 1%
of taxable income;
(b) over 30 and up to 50 Belizean workers employed..1.5%
of taxable income;
(c) over 50 Belizean workers employed .......................2%
of taxable income.
(3) During the first ten years of its operation, a CFZ business
shall be exempt from income tax or capital gains tax or any
new corporate tax levied by the Government of Belize after
the commencement of this Act, and any dividends paid by a
CFZ business shall be exempt from such tax for the firsttwenty years of its operation.43 of 1999.
(4) Where a CFZ business incurs a total net loss over the five
years tax holiday specified in subsection (3) of this section,
that loss may be carried forward and deducted against profits
in the three years following the tax holiday period.
(5) Any proceeds from the sale of stock or other partial or
complete ownership interest in a CFZ business shall be
exempt from tax levied under this section.
(6) The tax levied under this section shall be collected by the
Commissioner of Income Tax and the provisions of the
Income and Business Tax Act shall, subject to this section or
any regulations, mutatis mutandis  apply to the collection of
such tax and any appropriate action against the defaulter.CAP.55.
(7) A CFZ fee equal to the sum of five per centum of the taxcollected by the Commissioner of Income Tax under this
section in any year of assessment shall be placed to the credit
of the CFZMA.G/SCM/N/71/BLZ/Suppl.1
Page 35
(8) The CFZMA shall be exempt from all taxes.
(9) Gross receipts tax and any form of value added tax shall
not apply within a CFZ.
CFZ labour regime. 17.-(1) All CFZ businesses shall pay their workers in thecurrency of Belize or any other currency as agreed to by the
workers.
(2) There shall be no restrictions on the operations of CFZ
businesses which may open twenty-four hours, seven days aweek, provided that such businesses obtain the prior approval
of the CEO.
(3) The Immigration Department, on the recommendation of
the CEO, may grant work permits to non-resident personsrequired to serve within a CFZ in managerial or technical
positions.
PART IV
General
Enforcement and
liabilities.18.-(1) The CFZMA shall have the power and responsibility
to impose fines for violations of any of the provisions of this
Act by a CFZ business or CFZ developer and may makeregulations for this purpose.
(2) The CEO and other regulatory authorities shall have the
right to inspect any CFZ operations or facilities to investigate
violations of applicable requirements.
(3) Where a CFZ business repeatedly violates the provisions
of this Act or regulations, the CEO, after due notice and
hearing, may revoke the status of the CFZ business to operate
within the CFZ, whereupon the business enterprise concerned
shall cease to be eligible for any benefits under this Act.
(4) Where the CEO determines that a foreign national
working for a CFZ business ceases to comply with the
requirements of a work permit, the CEO shall recommend to
the Immigration Department that the work permit of such a
person may be revoked.
(5) A CFZ business shall be liable for any damage to persons
or property which may result from any violation of relevant
regulatory requirements by the CFZ business.
(6) Every CFZ business shall comply with all the Laws of
Belize save as otherwise provided in this Act.
(7) Every CFZ business shall have the right to appeal to theG/SCM/N/71/BLZ/Suppl.1
Page 36
CFZMA against any decision of the CEO.
(8) Every CFZ business shall enjoy protection from
deprivation of property, in accordance with the fundamental
rights guaranteed under the Belize Constitution.CAP.4.
(9) All fines imposed by the CFZMA under this Act shalloperate as a debt due to the CFZMA from the offender and
may be recovered as a civil debt in a court of competent
jurisdiction as provided by law.
(10) The CFZMA may revoke the Certificate of Compliance
of a CFZ business for repeated failure to pay fines imposed
under this Act or any regulations.
19.-(1) The CFZMA may, by a two-thirds majority, make
regulations for the better carrying out of the provisions of thisAct, and for prescribing anything that needs to be prescribed
under this Act.Regulations.
(2) Any regulations made by the CFZMA under this section
shall be placed before the National Assembly through theMinister as soon as may be after the making thereof and shall
be subject to negative resolution.
20. This Act shall come into force on a day to be appointed
by the Minister by Order published in the Gazette .
_______________G/SCM/N/71/BLZ/Suppl.1
Page 37
EXPORT PROCESSING ZONE ACT
CHAPTER 280
REVISED EDITION 2000
SHOWING THE LAW AS AT 31 DECEMBER 2000
This is a revised edition of the law, prepared by the Law Revision Commissioner under the authority
of the Law Revision Act, Chapter 3 of the Laws of Belize, Revised Edition 1980-1990.
This edition contains a consolidation of the following laws - Page
ARRANGEMENT OF SECTIONS 3
EXPORT PROCESSING ZONE ACT 4
Amendments in force as at 31 December 2000
CHAPTER 280
EXPORT PROCESSING ZONE ACT
ARRANGEMENT OF SECTIONS
1. Short title.
2. Interpretation.
3. Export Processing Zone Committee.
4. Designation of Export Processing Zones.
5. Export Processing Zone Developers.6. Powers and responsibilities of Export Processing Zone
Developers.
7. Establishment of Export Processing Zone businesses.
8. Activities of EPZ businesses.
9. EPZ imports and exports.
10. Domestic sales to EPZs.
11. EPZ regulatory regime.12. EPZ tax regime.
13. EPZ labour regime.
14. Enforcement and liabilities.
15. Regulations.
16. Appeal Board.17. Fees, fines to be paid into Consolidated Revenue Fund.
The Substantive
Laws of BelizePrinted by the Government Printer,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.Revised Edition
2000G/SCM/N/71/BLZ/Suppl.1
Page 38
CAP.232.B,
R.E. 1980-1990.8 of 1990.23 of 1994.
Commencement
[4.6.1990]S.I. 65 of 1990.CHAPTER 280
EXPORT PROCESSING ZONE
[4th June 1990]
PART I
Preliminary
Short title. 1. This Act may be cited as the Export Processing Zone Act.
Interpretation. 2. In this Act, unless the context otherwise requires-
(a) “domestic Belizean business” means any non-foreign
individual, partnership, corporation or other entity conducting
a trade or business within Belize, which is not an Export
Processing Zone business;
(b) “Export Processing Zone” or “EPZ” means a geographic
area in Belize designated as provided in section 4, outsidenational customs territory and duly restricted by controlled
access, wherein the benefits created by this Act for Export
Processing Zones shall apply to a complex of industries, and
may include a single business and its facilities, referred to as
a “Special Export Processing Zone”;
(c) “Export Processing Zone business” or “EPZ business”
means a private party which has been granted a Certificate of
Compliance under section 7 and which conducts a trade or
business, including but not limited to manufacturing,commercial, office, warehousi ng, professional or other
activity, primarily within the Export Processing Zones
established under this Act. The Export Processing Zone
Developer for an Export Processing Zone shall be considered
an Export Processing Zone business;
(d) “EPZC” means the Export Processing Zone Committee as
provided in section 3;
(e) “Export Processing Zone Developer” or “EPZ Developer”
means a corporation established to administer an Export
Processing Zone in accordance with section 5, and which has
been found suitable in accordance with section 4 to serve as
such Export Processing Zone Developer;
(f) “Export Processing Zone export” or “EPZ export” means
any export sold by an Export Processing Zone business andoriginating in an Export Processing Zone, regardless of
whether such export passes through Belize and departs BelizeG/SCM/N/71/BLZ/Suppl.1
Page 39
outside an Export Processing Zone for shipping or
transportation purposes;
(g) “Export Processing Zone import” or “ EPZ import”
means any input or service to be delivered to an ExportProcessing Zone business within an Export Processing Zone,
whether from out side or inside the Belizean customs
territory;
(h) “infrastructure” means a physical structure which
facilitates economic or other activity, or protects property,
such as roads, bridges, or storm sewers;
(i) “Minister” means the Minister for the time being
responsible for Trade and “the Ministry” shall be construed
accordingly; 23 of 1994.23 of 1994.
(j) “private party” means any individual, partnership,company., corporation, or other entity, domestic or foreign,
which is not a government agency or owned in any part by a
government agency;
(k) “public party” means any agency of the Government of
Belize;
(l) “public service” means any service which has been
provided in Belize by a Government agency;
Export Processing
Zone Committee.
23 of 1994.3.-(1) There is hereby established an Export Processing Zone
Committee which shall be composed of one designated
representative from each of the following:
(a) Ministry of Trade;
(b) Ministry of Labour;(c) Ministry of Economic Development;(d) Ministry of Finance;(e) the Belize Chamber of Commerce and Industry;(f) the small businesses sector;
(g) the EPZ Developers;
(h) the EPZ businesses,and two representatives with suitable knowledge and
experience from the industrial sector to be appointed by the
Minister in his discretion.
(2) The function of the EPZC shall be to designate Export
23 of 1994.G/SCM/N/71/BLZ/Suppl.1
Page 40
Processing businesses in accordance with this Act and any
regulations made thereunder.
(3) The quorum of the EPZC shall be six members. 23 of 1994.
(4) The decisions of the EPZC shall be by a majority vote. 23 of 1994.
(5) The Minister shall appoint a suitable person from among
the members of the EPZC to be the Chairman thereof.23 of 1994.
(6) The Chairman of the EPZC and the two representatives
from the industrial sector appointed by the Minister shallserve for a period of two years and shall be eligible for
reappointment.23 of 1994.
(7) The EPZC may, after consultation with the Minister,
make rules to govern its own procedure.23 of 1994.
4.-(1) The EPZC shall establish by regulations a procedure bywhich public or private parties may apply for EPZ
designation.Designation of
Export ProcessingZones.
(2) The EPZC shall decide whether to designate Export
Processing Zones as requested by application, based on the
need for economic development in the proposed zone area,
the likelihood of success of such designation in stimulating
economic development, and other considerations in thepublic interest.
(3) The EPZC shall designate an EPZ only after the
establishment of a legally constituted EPZ Developer for the
Zone as specified in section 5, which the EPZC finds suitableto serve as such EPZ Developer.
23 of 1994. (4) Special Export Processing Zones shall adhere to the
provisions established herein for the EPZ businesses, and are
not subject to designation procedures described in
subsections (1) to (3).
Export Processing
Zone Developers.5.-(1) Each EPZ shall be administered by the Export
Processing Zone Developer established for that Zone.
(2) Each EPZ Developer shall be a separately incorporated
entity.
(3) An EPZ Developer may be established by one or more
private or public parties.
(4) Each EPZ Developer must either own or have leased all
the land within a proposed zone area.
(5) An EPZ Developer may sell his interest and rights in the
zone to another private or public party after receivingG/SCM/N/71/BLZ/Suppl.1
Page 41
approval for such sale from the EPZC.
Powers and
responsibilities of
Export Processing
Zone Developers.6. The Export Processing Zone Developer for each EPZ shall
have the power and responsibility-
(a) to operate EPZ businesses on real property it owns or has
leased within the zone, after receiving the appropriate
Certificate of Compliance for each business from the
Ministry;
(b) to lease or sublease real property it owns or has leased
within the Zone;
23 of 1994. (c) to make improvements, construct facilities and developinfrastructure, including independent utility installations, to
enhance an EPZ’s economic development, provided that
before considering independent utility installations, the EPZDeveloper shall offer the existing providers of utility services
in Belize, the option for the provision of such services to the
EPZ, based on quality, competitiveness, the special
circumstances of the EPZ and other relevant considerations;
(d) to provide public or other services or contract for such
services within the Zone;
(e) to charge fees for any services or facilities it provides
within the Zone, directly to those who use such services orfacilities ;
(f) to adopt rules and regulations for businesses within the
Zone, which shall promote the safe, efficient, and successful
operation of the Zone, consistent with this Act andimplementing regulations, and the Laws of Belize and the
Belize Constitution;
CAP.4.
(g) to promote and advertise the Zone to prospective
investors and business owners and operators;
(h) to report on Zone activities, performance, and
developments to the Ministry on a regular basis, as specified
by the Ministry; and
(i) to conduct other activities authorised by this Act, and all
other legal activities of a private corporation.
7.-(1) Any private or public party, or group of parties, may
establish an EPZC business on property it owns or has leased
within the Zone, provided that it has applied for and obtained
a Certificate of Compliance from the EPZC.(2) The EPZC shall have the sole authority to receive
applications for a Certificate of Compliance and to issue suchEstablishment
of ExportProcessingZone
businesses.
23 of 1994.G/SCM/N/71/BLZ/Suppl.1
Page 42
23 of 1994.Certificates, after obtaining the approval of relevant
Government authorities. Upon receipt of an application, the
EPCZ shall review and circulate the application to the
Ministry of Finance, the Ministry of Economic Development,
the Ministry of Natural Resources, the Ministry of Labourand the Ministry of Agriculture for their approval. Approved
businesses will receive a Certificate of Compliance allowing
them to do business within an Export Processing Zone. The
EPZC shall establish all necessary procedures by which
applications for Certificates of Compliance
may be made.23 of 1994.
23 of 1994. (3) The EPZC may, with the approval of the Ministries listed
in subsection (2), grant a Certificate of Compliance if the
proposed business enterprise-
(a) will produce goods and/or services solely for export or
sale to buyers who are not residents of Belize, except as
provided in section 8 (3);
(b) will not have a deleterious effect on the environment;
(c) will be conducted in compliance with all applicable legal
and regulatory requirements under the Laws of Belize, and all
rules and regulations of the Zone established by the operating
authority, and the owner or owners of the enterprise have
agreed to maintain such compliance.
(4) Any private or public party with a Certificate of
Compliance may lease property within an EPZ from the EPZ
Developer on the terms and conditions agreed to by the EPZ
Developer and the lessee. The EPZ Developer shall not berequired to lease EPZ property to any particular party,
including parties which have been issued a Certificate of
Compliance.
23 of 1994. (5) An EPZ Developer may lease property within an EPZ to a
non-exporting firm, but only after receiving approval from
the EPZC for such lease. The EPZC shall grant such approval
only if the services provided by the firms are complementary
to and enhance Zone business activities. The lessee may
conduct a domestic Belizean business on the leased property
under the established Laws of Belize without any of the
benefits or advantages created under this Act for EPZbusinesses.
(6) Rent shall be paid to an EPZ Developer in United States
of America dollars or the equivalent in the currency of Belize
at the official exchange rate prevailing at the time ofpayment.
8.-(1) The Certificate of Compliance for an EPZ business
shall state what lines of business the EPZ business may
conduct within the Zone, and the EPZ business shall beActivities of EPZ
businesses.G/SCM/N/71/BLZ/Suppl.1
Page 43
limited to those business lines.
(2) An EPZ business shall conduct its business activities in
accordance with the terms and conditions of section 7.
Activities of an EPZ business shall be conducted withinBelize Export Processing Zones or foreign countries.
Activities in Belize outside of an EPZ shall be limited to
transportation, distribution, or business meetings.
(3) An EPZ business shall not sell, lease or transfer any
article, item, goods, or service in Belize outside an EPZ, or to
any resident of Belize or any domestic Belize businessenterprise. The EPZ, with the concurrence of the Ministry,
may provide waivers to this restriction upon application at its
discretion. An EPZ business shall be free to sell, lease or
transfer any article, item, goods, or service in an EPZ or
outside Belize to other EPZ businesses, to foreign businesses,or to foreign individuals.23 of 1999.
9.-(1) No import licence shall be required for any imports of
an EPZ business into an EPZ.EPZ imports and
exports.
(2) All imports of an EPZ business into an EPZ, including
capital equipment, service and utility vehicles, office
furniture, spare parts, raw materials, intermediate goods and
supplies shall be exempt from all customs duties, tariffs,
consumption taxes, excise taxes, trade turnover taxes, orother taxes. Fuel entering an EPZ for energy generating
purposes shall be included in such exemption, provided the
fuel is not retailed.23 of 1994.
(3) No quotas or import prohibitions concerning any article,item, material or goods shall apply to imports of an EPZ
business into an EPZ, except that firearms, military
equipment or material, and illegal drugs under the Laws of
Belize shall not be imported into an EPZ.
(4) The Customs Department shall defer inspection of any
imports to an EPZ until such imports reach the Zone. Suchimports must be transferred from the port of entry in sealed
containers. At the Zone, the Customs Department shall
inspect the imports to determine whether they contain any
prohibited articles, items or materials and are in keeping with
accompanying documentation.
(5) No export licence shall be required for any exports of an
EPZ business out of an EPZ.
(6) All exports of an EPZ business out of an EPZ shall be
exempt from all customs duties, tonnage taxes, consumption
taxes, excise taxes, trade turnover taxes, foreign exchange
taxes, or other taxes.G/SCM/N/71/BLZ/Suppl.1
Page 44
(7) No regulatory restriction shall apply to any exports of an
EPZ business out of an EPZ, except that firearms, military
equipment or material, and illegal drugs under the laws of
Belize shall not be exported from an EPZ.
(8) The Customs Department shall inspect exports of an EPZ
business at the EPZ to determine whether the exports contain
any illegal articles, items or materials and are in keeping with
accompanying documentation.
(9) An import licence shall be required for any imports into
Belize from an EPZ, to be issued under the same rules andprocedures as all other import licences. The standard customs
duties, consumption taxes, foreign exchange taxes, trade
turnover taxes, excise taxes, quotas or import prohibitions
under the Laws of Belize shall apply to such imports. The
Customs Department shall inspect such imports upon entryinto Belize from the EPZ.
(10) The Customs Department shall maintain an on-site
office at each EPZ to carry out its responsibilities under this
Act, the cost of which shall be borne by each ZoneDeveloper. Special Export Processing Zones shall be
responsible for maintaining adequate surveillance of their
operations and securing customs supervision for the entry and
exit of goods from their facilities.
10.-(1) No licence shall be required for the sale of any article,
item, material, goods or service by a domestic Belizean
business to an EPZ business.
Domestic sales to
EPZs.
(2) The EPZ purchaser shall pay for any such article, item,
material or goods sold under subsection (1) in the currency of
Belize.
(3) No price controls shall apply to the sale of any such
article, item, material or goods sold under subsection (1).
(4) Any such article, item, material or goods sold under
subsection (1) shall not be counted as fulfilling any import
quota.
(5) The sale of any article, item, material or goods under
subsection (1), shall be treated as an export of the article,item, material or goods under the Laws of Belize, qualifying
the seller for all incentives for domestic Belize enterprises
which apply to exports.
11.-(1) No licence or permit shall be necessary to conduct an
EPZ business, except the Certificate of Compliance under
section 7 and the work permits under section 13. The Trade
Licensing Act shall not apply to an EPZ business.EPZ regulatory
regime.CAP. 66.G/SCM/N/71/BLZ/Suppl.1
Page 45
(2) No price controls shall apply to the products or services
sold by an EPZ business. The Supplies (Control) Act shall
not apply to an EPZ business.CAP. 293.
(3) No rent controls shall apply to any rental property insidean EPZ. The Rent Restriction Act shall not apply to EPZ
business enterprises or lessors and lessees of real property
within Export Processing Zones.CAP. 195.
CAP.52.(4) No regulations, restrictions or prohibitions regarding the
sale or purchase of foreign currencies shall apply to an EPZ
business. The Exchange Control Regulation Act shall notapply to EPZ businesses. EPZ businesses shall be free to
maintain bank deposits in foreign currency in domestic or
foreign banks located in Belize.
(5) EPZ businesses shall, if so requested, report to the Central
Bank of Belize all purchases and sales.
(6) EPZ business enterprises shall not be restricted to
purchasing any goods or service from any particular company
or entity or any group of companies or entities. An exclusivefranchise to sell any particular goods or service shall not be
effective within Export Processing Zones.
12.-(1) Each business shall be exempt from income tax,
withholding tax, capital gains tax or any new corporate taxadopted by the Government of Belize after the
commencement of this Act for a minimum of the first twenty
years of operation, with an option to extend the exemption
for a further period of time. Any dividends paid by an EPZ
business shall also be exempt from tax in perpetuity.
CAP.297. (2) EPZ businesses shall be subject to all payroll taxes andother taxes, as set out in the Labour Act.
(3) If an EPZ business incurs a total net loss over the twenty
years of the tax holiday specified in subsection (1), that loss
may be carried forward and deducted against profits in theyears following the tax holiday period.
(4) Any proceeds from the sale of stock or other partial or
complete ownership interest in an EPZ business shall be
exempt from any capital gains tax.
CAP.58. (5) All real property within an EPZ shall be exempt from any
property or lands tax. The Land Tax Act shall not apply to
EPZ property. Any sale of real property within an EPZ shall
be exempt from any transfer tax.
(6) All goods or services sold by an EPZ business enterprise
outside the Belize customs territory shall be exempt from any
consumption tax, sales tax, excise tax trade turnover tax orG/SCM/N/71/BLZ/Suppl.1
Page 46
value-added tax.
(7) All purchases or sales of foreign currency by an EPZ
business shall be exempt from any currency export tax or
foreign exchange tax.
13.-(1) The provisions of the Labour Act shall apply to the
EPZ Developer and to EPZ businesses.EPZ labour regime.
CAP.297.
(2) EPZ Developers and EPZ businesses shall pay their
Belizean workers in the currency of Belize.
(3) A work permit shall be required for any foreign national
to work on a regular basis for an EPZ business.
(4) Applications for work permits may be submitted to the
EPZ office which may process same through the relevantMinistry.
(5) The Immigration Department, on the recommendation of
the Ministry of Labour, may grant work permits to applicants
who will serve an EPZ business in senior management ortechnical positions and such permits shall remain in effect
until the holders of such work permits cease to work in the
positions for which such work permits have been granted.
(6) In addition to subsection (5), the Immigration
Department, on the recommendation of the Ministry of
Labour, may grant work permits for up to fifteen per centum
of the workers of an EPZ business as designated by the EPZ
business.
(7) Notwithstanding anything contained in the Immigration
Act or any other law, no fees shall be payable for work
permits issued under this section to EPZ personnel.CAP.156.
Enforcement and
liabilities.23 of 1994.14.-(1) The EPZC may assess fines for violations of any
requirements under this Act by an EPZ business or EPZ
Developer in accordance with regulations made under thisAct.
23 of 1994. (2) If an EPZ business shows a continuing pattern of
violations indicating that it will not reliably comply with
applicable requirements, then the EPZC, after proper noticeand hearing, may revoke the Certificate of Compliance. The
enterprise shall then no longer be eligible for any benefits
under this Act.
23 of 1994. (3) Where the EPZC determines that a foreign nationalworking for an EPZ business no longer satisfies the
requirements of his work permit, the EPZC may recommend
the revocation of such permit to the Ministries concerned.G/SCM/N/71/BLZ/Suppl.1
Page 47
(4) Each EPZ business shall be liable for any damage to
persons or property which may result from any violation of
applicable regulatory requirements by the EPZ business.
(5) The Ministry, the EPZC, and other Belize regulatory
authorities shall have complete authority to inspect any EPZ
operations or facilities for possible violations of applicable
requirements.
(6) Each EPZ business shall have the right to sue its EPZ
Developer in the courts of Belize or to submit the matter to
arbitration, to enforce its rights under this Act.
23 of 1994. (7) Each EPZ Developer shall have the right to sue the EPZCin the courts of Belize or to submit the matter to arbitration,
to enforce its rights under this Act.
(8) Each EPZ Developer and EPZ business shall enjoy
protection from deprivation of property in accordance with
the fundamental rights guaranteed under the Belize
Constitution. CAP.4.
15.-(1) The EPZC may, after consultation with the Minister,make regulations for the better carrying out of the provisions
of this Act.Regulations.
23 of 1994.
(2) Without prejudice to the generality of subsection (1), the
EPZC may, in like manner, make regulations for the
following:
(a) prescribing the criteria for obtaining a Certificate of
Compliance to establish an EPZ; and
(b) prescribing application fees and administrative fees.16.-(1) There shall be established an Appeal Board
(hereinafter referred to as “the Board”) which shall comprise
three members as follows:Appeal Board.
23 of 1994.
(a) the Solicitor General or his representative;
(b) the President of the University of Belize; and(c) the President of the Belize Chamber of Commerce and
Indus try.
(2) The Minister shall appoint one of the members of the
Board to be the Chairman thereof.
(3) The Chairman of the Board shall serve for a period of one
year and may be reappointed.
(4) An EPZ Developer or an EPZ business may appeal any
fine or revocation of Certificate of Compliance to the BoardG/SCM/N/71/BLZ/Suppl.1
Page 48
within twenty-one days of the decision of the Committee
imposing such fine or revoking such Certificate of
Compliance, and such fine or revocation of Certificate of
Compliance shall remain in force until such time as a final
decision is given by the Board.
(5) Notwithstanding subsection (4), the Board may extend the
time under subsection (4) upon good cause being shown.
(6) The Board shall hear appeals under subsection (4) as far
as practicable within twenty-one days of the appeal.
(7) The Board shall have power to reverse or modify any
decision and such decision shall be final and binding on the
parties to the appeal.
(8) The Board may make rules to govern its own procedure.
Fees, fines to be
paid intoConsolidatedRevenue Fund.
23 of 1994.17. All fees and fines payable under this Act shall be paid
into the Consolidated Revenue Fund.
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