Eritrea Free Zones Authority

Massawa Free Zone

 

Terms and Conditions of Operating a License

 

Proclamation No. 115/2001, dated August 25, 2001 and titled “The Eritrean Free Zone Proclamation” is the basis for the terms and conditions of operating a license specified hereunder. 

 

LICENSE UNDER

Part Five Free Zone’s Proclamation

 

         The Eritrea Free Zone Authority in exercise of the powers conferred on it by Part 5 of the Proclamation and by this license authorizes, subject to the conditions set out in the schedule to this license, (‘the Licensee’) ----------------------------------------------------- to carry on within the Free Zones area the trade of business of`: -

(a)  Please specify                                    

(b)   Please specify                                    

(c)    Please specify                                    

 

LICENSE SCHEDULE

Conditions subject to which this license is granted.

 

  1. The Licensee shall begin to carry on within the Zone the trade or business hereby licensed on or before the __________________________

 

  1. The Eritrean Free Zone Authority will monitor any trade or business operated by the licensee to ensure that the business described in the license is observed.  Failure to comply with the condition of the license will empower the Free Zone Authority to revoke the license.

 

  1. Off‑shore trading is not permissible unless it constitutes a minor but integral element of the Licensee’s total operation at the Zone and shall not exceed a level equal to 10% of on‑shore trading.

                                                                                                                                  

  1. Income from transactions within the State shall not exceed a level equal to 40% of total income from activities at the Zone. If the value added percentage is more than 40%, a national certificate of origin shall be issued inside the Free Zone.

 

  1. The Licensee shall provide whatever information/records the Eritrean Free Zone Authority needs in relation to establishing the extent to which the conditions relating to sales from off‑shore trading and sales into the State (including other businesses within the Zone) have been complied with.

 

  1. All imported goods shall be deposited immediately either in a transit building or in a designated area in the Licensee’s premises in the Zone or shall be kept intact there pending completion of customs formalities or payment of duty, where appropriate, on plant and equipment.

 

  1. All goods received under the Customs control shall be kept in the Licensee’s premises in the Free Zone (under the control of a responsible official of the Licensee) and shall be used solely in   the trade or business specified in this license.

 

  1. Any officer of Customs shall be allowed, at all reasonable times, to examine the consignments on receipt into, or dispatch from, the Zone and shall be given any necessary assistance in such examination, including in the opening, weighing and closing of any package.

 

  1. Stock accounts of all goods received under the Customs control shall be kept in such form as to show clearly at any time the quantity: ‑

(a)    Received,

(b)   Used in manufacture,

(c)    Transferred to other businesses,

(d)   Destroyed under Customs supervision or otherwise accounted for,

(e)    Remaining on hand, or

(f)     Diverted to the State of Eritrea.

 

In the case mentioned under (f) above, where any such goods are liable to import duty, separate accounts must be kept in respect of quantities diverted to the home market. Such accounts shall be balanced and stock taken whenever the proper Officer of Customs so requires, and the proper duty shall be paid on demand on any deficiency found which is not accounted for to the satisfaction of the Customs.

 

  1. All stock accounts and relative documents shall be preserved for a period of at least five years after the date of the last entry therein.

 

  1. Schedules shall be furnished, on request, to the proper Officer of Customs and be approved by him, showing in respect of each type and size of article to be produced, manufactured, processed or packaged the quantity of each description of material received into the Zone which is required to complete the manufactured, processed or packaged article or a specified number of such articles and no departure shall be made from said schedules unless prior notice of the change has been given to the proper Officer of Customs and (a) new schedule(s) has(have) been furnished to him and has(have) been approved by him.

 

  1. Any Officer of Customs shall be allowed, at all reasonable times, to examine the said accounts and all trade books, records and documents which he may require to inspect in order to satisfy himself as to the accuracy of the accounts.

 

  1. The Customs officer shall be allowed access to the goods and shall be given any necessary assistance in taking account of goods in stock. Samples of the goods received and of the compensating products in which they are used shall be furnished to any such Officer on demand by him.

 

  1. All goods for delivery outside of the Zone shall be presented at the appropriate Freight Terminal accompanied by a Single Administrative Document, supported by the necessary documents (e.g. invoices, export licenses), to an Officer of Customs for clearance at the time of shipment.

 

  1. All duties, levies or other like charges shall be paid and all import prohibitions or  restrictions shall be satisfied on any goods, which attract such charges. These requirements shall be discharged in advance of any such diversion or exportation unless an arrangement for their deferment has been approved by the Customs.

 

  1. Goods shall not be transferred to another trader in the Zone without the written permission of the Customs authorities. Written application shall be made by the transferor and by the proposed transferee to the Customs Control Officer at the Zone, with a copy to the Eritrean Free Zone Authority.

 

17. In respect of each period of three months commencing from the first day of each quarter a summary of the accounts required shall be furnished in the form of a balance statement to Customs Officer. Within ten days from the termination of such period and every such return shall be duly certified by a duly authorized official to be a full and true account of all transactions, which took place during the period in question.

 

18.  The Licensee shall conform to procedures laid down from time to time by the Eritrean Free Zone Authority.  

 

 

By order of the Eritrean Free Zone Authority.

DATED THIS DAY……..

MONTH of……………   YEAR ………….