Section 7: Freeport activities

7. Freeport activities (1) Subject to the other provisions of this section, the activities specified in the Second Schedule shall be the freeport activities authorised to be operated in the freeport zones. (2) Subject to subsection (3), no activity shall be carried out in a freeport zone unless it is carried out— (a) for the re-export and export of goods; (b) for the development of the freeport zone; (c) for the provision of goods and services by freeport operators wholly and exclusively to freeport developers and other freeport operators. (3) (a) The Board of Investment may, in consultation with the DirectorGeneral, and subject to such terms and conditions as it may impose— (i) authorise a third party freeport developer to provide warehousing facilities in a freeport zone— (A) to an enterprise for the storage of goods free of duty, excise duty and taxes; or (B) to any other enterprise outside the freeport zones for the storage of goods; (ii) authorise an enterprise to carry out an activity in a freeport zone for the provision of support services to a holder of a freeport certificate or to any person within or entering the freeport zones; (iii) authorise a private freeport developer or freeport operator to provide goods and services to a person outside the freeport zone; or (iv) authorise a third party freeport developer to rent space within a freeport zone to an enterprise for such period as the Board may determine for the purpose of holding local exhibitions, trade fairs and other events. (b) No enterprise referred to in paragraph (a) shall be regarded as carrying out an authorised activity and requiring a freeport certificate under this Act. (ba) Where a third party freeport developer provides warehousing facilities to an enterprise pursuant to paragraph (a) (i), it shall— (i) before providing such facilities, ascertain that the person has all the necessary licences, permits or authorisations from the competent authorities; and (ii) forward a copy of the letter stating that it is providing such facilities, to the Director-General and to the Board of Investment. [Issue 5] F23 – 4 Revised Laws of Mauritius (bb) Where warehousing facilities are provided to an enterprise under paragraph (ba)— (i) the place where the warehousing facilities are provided shall be deemed to be a bonded warehouse; and (ii) the enterprise to which warehousing facilities have been provided shall comply with the requirements applicable to a bonded warehouse. (bc) Where goods in a place deemed to be a bonded warehouse under paragraph (bb) (i) are sold or transferred to any operator in the freeport zone, those goods shall be removed from that bonded warehouse and shall not enter into any other bonded warehouse, whether in or outside the freeport zone. (c) In this subsection— “support services” means ship management services or such other services as may be prescribed. (4) Subject to subsection (5), the Director-General may authorise a private freeport developer or a freeport operator to remove goods from a freeport zone to any other place in Mauritius on completion of customs formalities. (5) (a) Where goods are removed pursuant to subsection (4) for consumption in Mauritius or services are provided outside the freeport zone, the goods or services shall be subject— (i) in the case of a foreign company registered under the Companies Act, to such quota the Board of Investment may determine provided that the quota in respect of any period of 12 months shall not, afte t operator to remove goods from a freeport zone to any other place in Mauritius on completion of customs formalities. (5) (a) Where goods are removed pursuant to subsection (4) for consumption in Mauritius or services are provided outside the freeport zone, the goods or services shall be subject— (i) in the case of a foreign company registered under the Companies Act, to such quota the Board of Investment may determine provided that the quota in respect of any period of 12 months shall not, after a period of 3 years from the date the company starts its operations, exceed 50 per cent of the annual turnover of the goods to be re-exported or exported or 50 per cent of the annual turnover of services provided by the foreign company during that period of 12 months; (ia) in the case of an enterprise referred to in item 3 (I) of the Second Schedule, to the percentage specified in that Schedule; (ii) in any other case, to such quota as the Board of Investment may determine provided that the quota in respect of any period of 12 months shall not exceed 50 per cent of the annual turnover of the goods to be re-exported or exported or 50 per cent of the annual turnover of services provided by a private freeport developer or freeport operator during that period. (b) For the purpose of— (i) paragraph (a) (i), the first period of 12 months shall commence on the day immediately after the period of 3 years referred to in that paragraph; (ii) paragraph (a) (ii), the first period of 12 months shall commence on the day the licensee first re-exports or exports the goods. F23 – 5 [Issue 7] Freeport Act (6) For the purpose of subsection (5), the Director-General shall monitor the quota and where the determined quota has been exceeded, it shall, in consultation with the Board of Investment, take such steps as may be necessary including the suspension or revocation of the freeport certificate of the private freeport developer or freeport operator, as the case may be. (7) Subsections (4) and (5) shall not apply to a private freeport developer or a freeport operator authorised to carry out any of the freeport activities specified in item 3 (I) of the Second Schedule. [S. 7 amended by s. 14 (c) of Act 15 of 2006 w.e.f. 1 July 2006; s. 18 (c) of Act 14 of 2009 w.e.f. 1 July 2009; s. 9 (b) of Act 26 of 2012 w.e.f. 22 December 2012; s. 20 (a) of Act 9 of 2015 w.e.f. 14 May 2015.] PART III – ISSUE OF FREEPORT CERTIFICATE