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Syria

OPERATION REGULATIONS OF FREE ZONE IN SYRIAN ARAB REPUBLIC

Legislative Decree No. 18 On the Fundamental Regulations Of the Establishment ‏

The President of the Republic ‏

Pursuant to the rules of the provisional constitution ‏

Pursuant to decision no.18 issued by the council of ministers on 18.2.1971 ‏

ENACTS as follows: ‏

Article 1 ‏

There shall be created a public establishment that enjoys the status of a juristic person and has a financial and administrative autonomy to be called the public establishment of free zones in the Syrian Arab Republic attached to the minister of economy and foreign trade. ‏

The establishment shall be considered to be an establishment of an economic character and shall be governed in its dealing with third party by the provisions of the law of commerce. ‏

The head office of the establishment shall be in the city of Damascus and the establishment may set up branches in other Syrian cities if and when necessary. ‏

Article 2 ‏

The Establishment shall assume the following duties: ‏

To run and operate the free zones, to set up such warehouses and stores as may be necessary for such free zones, and to develop them so as to contribute to the growth and prosperity of these zones. ‏

To propose such projects so as to set up or to cancel free zone. ‏

To organize the functions of the free zones and to coordinate their activities so as to serve economy and to develop international trade exchange. ‏

To exercise all such powers that has been exercised by such bodies operating the free zones except such powers in relation to the affairs of customs control. ‏

Generally to handle all matters concerning the management and operation of the free zones. ‏

The Establishment shall observe such provisions and conditions concerning customs and currency control and shall provide such constructions as may be necessary for this purpose. ‏

Article 3 ‏

The Establishment shall have a board of directors to be set up and its powers to be defined as provided for in the fundamental regulations. ‏

The Establishment shall be run by a general manager to be appointed by a decree and his powers shall be defined in the fundamental regulations. ‏

Article 4 ‏

The Fundamental regulations, the numerical strength and the operation regulations of the Establishment shall be issued by a decree with the approval of the Economic committee and these regulations may embody exclusions from the provisions of the laws and regulations in force. ‏

The other regulations of the Establishment shall be issued by an order from the minister of economy and foreign trade on a proposal by the board of directors provided that the approval by the minister of finance of the financial regulations shall be obtained. ‏

Pending the issue of the regulations referred to in the two preceding clauses the internal, financial and appointment and employment regulations in force at present in the free zones shall continue to be in force in so far as they are not contrary to the provisions of this legislative decree. ‏

Article 5 ‏

The Establishment shall follow the state financial year and shall keep its accounts in line with the principles of business accounting. The funds of the Establishment shall be considered as public funds for the purpose of the application of the provisions of the law of economic sanctions. ‏

Article 6 ‏

For financing the Establishment depends in particular on: ‏

Dues, rents and charges for temporary tenancy and services as defined in the operation regulations. ‏

The appropriations annually set aside by the state for the Establishment. ‏

Loans from third party. ‏

Article 7 ‏

As regards court proceedings the Establishment shall be relieved from giving in a deposit in all such cases a deposit is required to be given in by law. ‏

Article 8 There shall be transferred to the Establishment the free zones created prior to the issue of this legislative decree together with such constructions existing in such free zones. These constructions, the land attached thereto, their equipment and their value shall be determined by an agreement made for this purpose between the minister of finance and minister of economy and foreign trade. ‏

Article 9 ‏

With due observance of the legal provisions in force persons in the employ of the free zones existing at the date of the coming into force of this legislative decree may be transferred or seconded to the Establishment by an order from the board of directors upon an agreement with the minister of finance and the government service in which such persons work. ‏

Article 10 ‏

All provisions contrary to this legislative decree shall be deemed to be automatically amended. ‏

Article 11 This legislative decree shall be published in the official Gazette and shall come into force immediately upon its issue. ‏

Damascus, 23.12.1390 h. ‏

18.02.1971 A.D. ‏

President of the Republic ‏

Decree No. 84 ‏

The President of the republic, ‏

Pursuant to the rules of legislative decree no. 18 of 18.2.1971, ‏

Enacts as follows: ‏

Article 1 ‏

The operation regulations of free zones and duty free shops in the Syrian Arab Republic and its annex containing the operation tariffs shall be endorsed and shall be applied to all free zones and duty free shops in the country. ‏

Article 2 ‏

The provisions contrary to these regulations shall be repealed. ‏

Article 3 ‏

This Decree shall be published and shall be notified to whomsoever necessary for implementation. ‏

Damascus, 24.11.1391 H. ‏

10.01.1972 A.D. ‏

President of the Republic ‏

Operation Regulations of Free Zones In Syrian Arab Republic ‏

General Provisions ‏

Article 1 ‏

The following expressions shall have the meanings hereby assigned to them: ‏

The Establishment: The public establishment of free zones ‏

The board: The Board of directors of the establishment ‏

The director: the General director of the establishment ‏

Article 2 ‏

These regulations shall apply to all free zones and duty free shops that are set up or will be set up in the Syrian Arab Republic. ‏

Article 3 ‏

The establishment shall have the exclusive power to operate all free zones and duty free shops and the board may upon a proposal by the director assign the duty to operate the markets to another administration upon such conditions as may be set by the board. ‏

Article 4 ‏

The establishment shall have a right of priority over all movable and immovable property of the establishment’s debtors lying within free zones and duty free shops. ‏

Article 5 ‏

Free zones and duty free shops shall be governed by the laws and regulations concerning security, morals, public health and antismuggling. ‏

Admission of Goods ‏

Article 6 ‏

Foreign goods of any description whatsoever, irrespective of their origin or source, shall be allowed to be admitted into and exited out of free zones and duty free shops, to the exclusion of the customs zone, and shall in this case be not subject to foreign trade regulations and shall not be chargeable to customs duties and taxes. ‏

Domestic goods or goods that have become as such by placement for consumption shall be allowed to be admitted into free zones and duty free shops shall be governed by the regulations in force in this respect. ‏

Goods lying in the free zone shall be allowed to be admitted into the customs zone to be placed for local consumption in accordance with the laws and regulations in force. ‏

Article 7 ‏

As an exception to the provisions of article 6 the following goods shall be prohibited from being admitted into free zones and markets under pain of seizure without any indemnity, apart from such other legal measures as are provided for in the laws in force. ‏

Goods of Israeli origin or source, goods prohibited to be imported under Israel boycott regulations and goods from such states with which economic dealing is prohibited. ‏

Narcotics of any description and their derivatives to the exclusion of such narcotics and derivatives for medicines and pharmaceutical industry. ‏

Arms, ammunitions and explosives of any description whatsoever to the exclusion of hunting arms and their ammunitions. ‏

Rotten or inflammable materials as shown on such tables issued and upon such conditions specified by the establishment satisfy the requirement of public security, health and safety. ‏

Article 8 ‏

The status of the free zone shall not preliminary require within the boundaries of this zone any measures to be taken by the customs other than such measures for the detection of goods prohibited from being admitted under the provisions of article 7 of these regulations in agreement and cooperation with the establishment whereupon the establishment shall report to the customs any and all things in violation of the provisions of the said article the establishment’s officials or employees may perceive. ‏

Article 9 ‏

Goods shall be admitted into the free zone on the strength of an application to be submitted by the person concerned or his legal representative showing the origin, source, nature, type, weight and value of the goods as well as the type, trademark, numbering and number of the parcels, and the application shall contain a declaration by the applicant to the effect that he is cognizant of the provisions of these regulations and all rules concerning the operation of free zones and undertakes to observe and comply with them. ‏

Admission shall be as follows: ‏

Admission by land: ‏

From inside or outside the country: the customs formality accompanying the goods shall be attached to the application in question.

Admission by sea: ‏

From outside the country direct into the free zone in the same seaport. ‏

The original copy of the shipping manifest shall be attached to the documents and bills of lading. ‏

If the destination of the goods is an inland free zone, apart from the manifest, the documents and bills of lading referred to in the preceding clause shall be attached to the customs formality. ‏

From a Syrian seaport into a free zone in another Syrian seaport or an inland free zone admission shall be subject to the same conditions referred to in the preceding clause. ‏

Article 10 ‏

The Establishment shall submit to the customs lists of all materials admitted into or exited from the free zone within 36 hours. ‏

Article 11 ‏

When goods are admitted into or exited from the free zone, they shall be entered into the admission and exit registers prepared by the establishment in such approved regular forms which shall contain all such data of the relevant goods as set out in article 9 and all such data that may facilitate the identification of the goods. ‏

Article 12 ‏

The goods admitted into the free zone shall be deposited in general roofed warehouses, and where there are no places in such warehouses, they shall be put under sheds or, otherwise, in open yards, with due regard as far as possible to the nature of the goods. There shall be put in open yards in particular: ‏

Such goods that are impossible to put in sheds or roofed warehouses by reason of shape, size or weight, and are not affected by atmospheric conditions. ‏

However, if the goods are affected by such conditions, the owners of the goods or their legal representatives shall take the necessary precautions for their protection. ‏

The Establishment may take, without being bound, at the expense of the owners of the goods, at its sole discretion, the precautionary measures in question, and shall, in exercising this right, advise the persons concerned of the measures that have been taken and the quantum of expenses due within 48 hours, and the owners of the goods shall have the right to apply to the Establishment in writing to lift such precautionary measures at their own responsibility. ‏

Such goods whose owners apply for their deposit in such a manner especially when the warehouses and sheds are full provided that the owners of such goods shall submit a prior declaration in writing to the effect that such a deposit is at their own responsibility. ‏

Article 13 ‏

There shall be deposited in free zones the goods whose particulars and types are set out in the applications for admission and the owners of such goods shall be held responsible for the correctness of the statements that have been submitted and for any fault or fraud that may be found therein. ‏

Handing & Taking Over ‏

Article 14 ‏

The goods shall be handed over to the establishment if and when they are admitted into such places other than the private tenancy according to the following procedures there shall be registered in the presence of the owner of the goods or his legal representative the parcels that have been admitted according to their types, marks and numberings, the damaged and suspicious parcels shall be sorted out, weighed and plumbed, an outturn report shall be made under the signature of the representative of the establishment and the person concerned, and there shall be entered in the outturn report any contradiction between the statements and documents on the one hand and the goods that have been taken over on the other hand. Goods in bulk or goods impossible to count shall be admitted as a whole according to their relevant documents and a reference shall be made in this respect in the outturn report. ‏

If the person concerned declines to sign the outturn report or enters a reservation as to the facts established therein and fails to approach the court of urgent affairs within a maximum period of 3 days as from the date of the outturn report, this outturn report shall have full effect and force as if it had been signed without any reservation. ‏

Article 15 ‏

Handing and taking over shall be as follows: ‏

Goods of identical units : by number or weight on the basis of the carton. ‏

Goods in bulk or goods impossible to count: according to the relevant documents without counting or weighing (i.e. as a whole as they have been received). ‏

Other goods: by number without weight. ‏

The Establishment shall not be responsible upon handing and taking over the goods referred to in clause (2) for weight and number as well as the goods referred to in clauses (1) and (3) for number even if this is given in the documents of the goods unless the owner of the goods asks the Establishment for handing and taking over be made on the basis of actual weight. In this case the expenses for weighing upon admission and exit shall be borne by the owner of the goods and the properties and nature of the goods, the method of packing and other circumstances that may have an effect of the weight of the goods, increase or decrease, shall be taken into consideration, whereupon the Establishment shall not be held responsible for any shortage in weight as a result of such circumstances. ‏

Warehouse Warrants

Article 16 ‏

The owner of the goods that have been deposited shall be given at his own request a nominal warehouse warrant or a receipt to order. Both shall be extracted from a book with counterfoil in which there shall be entered: ‏

The name, surname, calling and service address of the depositor. ‏

The number and date of admission of the goods into the general warehouses. ‏

The name and nationality of the carrier vessel, if and when necessary, or any other means of transport. ‏

The type of insurance and the sum insured. ‏

The number, marks and condition of the parcels and place of depositing. ‏

The type of the goods declared, the contents of the parcels and their weight. ‏

The depositor of the goods shall be solely held responsible for the correctness of these particulars. ‏

Article 17 ‏

The goods for which a warehouse warrant or a receipt to order is given shall be deposited in one place. The holder of the warrant or receipt shall have the right to divide the quantity deposited into several independent parts and to apply for the warrant or receipt to be replaced by a number of warrants or receipts equal to the number of the parts of the goods provided that the necessary measures shall be taken to distinguish these parts and to prevent their being mixed if and when necessary. ‏

Article 18 ‏

The nominal warehouse warrants shall not be endorseable. The goods for which nominal warrants have been given shall be assigned before the establishment according to such instructions as may be issued by the establishment provided that both the assignor and the assignee or their respective legal representatives shall appear and the warehouse warrants of the goods that have been assigned shall be returned for the issue of new warrants in the name of the new owner in substitution. ‏

Article 19 ‏

In case of the loss of the nominal warehouse warrant another warehouse warrant in replacement may be given or the goods subject of the warrant may be handed over to the person in whose name they are entered against a receipt along a declaration in writing of the loss of the warrant. ‏

Article 20 ‏

Prior to the registration of the assignment and the issue of a new warehouse warrant to the assignee the applicant shall pay all fees chargeable on the goods assigned up to the date of the registration of the assignment. ‏

Article 21 ‏

The depositor shall have the right to endorse the receipt to third party with no need to obtain the approval of or to notify the establishment and the endorser’s obligations in respect of the goods shall devolve on the endorsee. ‏

All notifications and notices shall be served by the establishment on the depositor and the goods that are the property of the depositor or the ultimate endorsee shall remain as a security for all the establishment’s entitlements. ‏

Article 22 ‏

In case of the loss of the receipt to order neither a replacement may be issued nor the goods may be handed over save by decision from the competent court and the establishment shall be under no responsibility in consequence. ‏

Article 23 ‏

Endorsement shall transfer the ownership of the goods and all rights and obligations of the endorser in respect of the goods shall devolve on the endorsee. ‏

Article 24 ‏

The depositing of the goods in the free zone shall not primarily be limited to a specified period except in such cases that necessitate the exit of the goods by reason of their very nature or the failure by their owners to pay such amounts as may be due to the establishment from them or their violation of the provisions of these regulations. ‏

Article 25 ‏

The establishment shall have the right, as the exigencies of operation may be require, move, with approval of the persons concerned, the goods from the place where they are lying to another place as the establishment may deem appropriate. Anyhow the establishment may remove, at the expense of the persons concerned, the goods that may be found deleterious to the neighborhood, public health or to the constructions of the establishment. ‏

Article 26 ‏

The establishment shall arrange for the insurance of the goods deposited in the warehouses and yards against fire risks and civil liability. This insurance shall be obligatory. ‏

The establishment shall recover from the owners of the goods deposited the insurance premiums appropriate to the value of the goods deposited and duration of depositing. ‏

Article 27 ‏

The establishment shall take such care as may be necessary to safeguard the goods deposited in the free zone and shall take such measures necessary for their maintenance. If it appears that the goods are susceptible to destruction or that the damage to the goods or to other goods by reason of the damage to the goods in question has become grave at the discretion of the establishment, then the establishment shall have the right to serve a notice in writing by registered mail to the person concerned to remove the goods out of the free zone within such a time limit as the establishment may set as the case may be, and in default the establishment shall have the right in agreement with the administration of customs to sell or to destroy such goods. ‏

The establishment may take such measures as may be necessary to protect the goods, to re-pack the parcels that have suffered damage and change or repair the covers at the expense of the owner of the goods if and when the establishment may so deem necessary with the approval of the person concerned, and the establishment shall have the right to carry out such works spontaneously at the expense of the persons concerned if and when the establishment may so deem necessary. ‏

The waste of the goods as a result of probing, packing and collection by reason of loose parcels shall be handed over to the owners provided that they shall pay for their collection and sweeping and for the bags and containers packed therein if and when necessary. ‏

The establishment shall dispose as the establishment may wish in its own interest with the waste of the goods that have not been identified. ‏

Article 28 ‏

The establishment shall not be responsible for blemish, damage or defect by reason of the nature of the goods, the form of their packing, their unpacking, and the ambient temperature or humidity throughout the period of depositing. Further the establishment shall not be responsible for damage by reason of strikes, commotion, riots, war operations and different sorts of force major as well as by reason of harmful animals the establishment have to fight. ‏

The establishment shall be held responsible for damage to the goods if it is established that such damage is a result of any act or negligence on the part of its officials, employees or workers, or the bad condition of its warehouses or their being not suitable for storage, on the strength of a decision issued by the competent court of law. The board may reach an amicable settlement to indemnify for the damage without recourse of the court of law. ‏

Article 29 ‏

There shall be allowed to be set up and to be carried out freely in the free zones with a prior license from the establishment different industries, plants and all converting processes. They are as an example not by way of limitation division, sorting, forming, processing, packing, packaging, mixing, purifying, cleaning, lubricating, distilling, acidifying, hammering, breaking, crushing, marking, placing and changing trademarks. ‏

The above operations shall be primarily carried out in places of special operations and the establishment may allow some of such operations be carried out in its general warehouses, yards or in such places prepared for this purpose if and when the establishment finds it possible. ‏

Duties and fees ‏

Article 30 ‏

The board shall have the right to endorse and set fees for such services that have not been envisaged in the tariff. ‏

The board shall have the right to increase or to decrease the fees as set out in the tariff annexed to these regulations at a rate not over than 50%. The new fees shall apply to all beneficiaries. ‏

The decisions adopted by the board under the provisions of (a) and (b) shall be published in the official Gazette. ‏

Article 31 ‏

The establishment shall collect the following fees as set in the tariff of free zones annexed to these regulations: ‏

Porterage and handling fees. ‏

Storage fee. ‏

Tenancy fee. ‏

Entry fee. ‏

Insurance fee. ‏

Assignment fee. ‏

Fee for other services and for use of equipment and plant. ‏

Article 32 ‏

The establishment shall carry out porterage and handling operations and shall collect from the owner of the goods the fee on the basis of weight in package or on the basis of actual weight as the case may be. ‏

As regards goods in bulk that are impossible to count, the fee shall be collected on the basis of the weight as given in the documents (manifest, customs declaration, or shipping document) whether porterage by hand labor by vehicles and equipment in the following cases: ‏

Case 1: Transport of the goods from the quay or the entrance of the free zone to the allocated place inside the zone and their stowing and stacking according to their types and marks. 

Case 2: Transport of the goods from the warehouses or yards of the free zone to the quay or the inspection room and their loading after survey for transport outside the free zone. ‏

Case 3: Taking over the goods alongside the means of transport inside the free zone, their depositing at the allocated place in the warehouses or yards inside the free zone and their stowing and stacking according to their types and marks. ‏

Case 4: Transport of the goods from the warehouses or yards in the free zone and their delivery alongside on board the means of transport inside the free zone. ‏

Case 5: Unloading the goods from a means of land transport and onloading on board another means of land transport. ‏

Article 33 ‏

The establishment shall collect from the owner of the goods fees for all porterage operations that are not within the definition in the previous article. They cover collecting, re-packing, changing and repair covers, weighing, sorting, handling, and such other services relating to porterage as defined in the tariff. ‏

Article 34 ‏

If the owner of the goods applies for porterage or another service and then he withdraws his application in whole or in part, the establishment shall have the right, if the necessary measures have already been taken, (according to the circumstances), to collect a porterage fee at a maximum rate or 50% for the entire quantity handled by labour. ‏

Article 35 ‏

The establishment shall collect storage fee for such goods deposited in such warehouses inside the free zone other than the warehouses occupied by tenants throughout the whole period of their stay in the warehouses without any period of exemption. ‏

The storage fee shall be calculated on the basis of the gross weight, number or volume as set in the tariff. ‏

Article 36 ‏

The establishment shall collect a tenancy fee for such private places as defined in the contracts made with the persons concerned. If and when tenancy fee is chargeable, the establishment shall not collect storage fee for such goods deposited in the private places of the tenants. ‏

Article 37 ‏

The establishment shall collect a duty at a flat rate in respect of such goods admitted into the free zone. ‏

Article 38 ‏

The establishment shall collect an assignment fee each time the goods, contracts of commercial or industrial tenancy, or vehicles and means of transport are assigned. ‏

Article 39 ‏

The establishment shall collect from the persons concerned fees for the different materials, services, certificates or copies of documents the establishments provides at request and charges for the use of machines and equipment. ‏

Article 40 ‏

The fees shall be chargeable for the whole period of the stay of the goods in the free zone up to the date of their actual exit. ‏

The board shall fix, upon a proposal from the director, the dates for the payment of the fees and advances to be paid by the persons concerned on account of the fees. ‏

The establishment shall have the right, if there is a delay on the part of the persons concerned for more than 6 months in paying such fees, to sell the goods by public auction following the service of a notice in writing and the lapse of a period of 15 days as from the date on which the persons concerned have been served the said notice. ‏

As regards goods that have a small value, the establishment shall have the right, if and when the fees are not paid on the dates on which they become due and payable, to sell such goods by public auction after the persons concerned are served a notice and after the lapse of the time limit referred to above. Sale shall be effected on the basis of the customs status in the free zone. ‏

Article 41 ‏

If a dispute arises between the establishment and the persons concerned over the question of fees and charges, the persons concerned shall pay the amount claimed by the establishment and shall then have the right to appeal administratively to the competent authority in the establishment and to have recourse, if and when necessary, to the competent court of law. ‏

Article 42 ‏

It is a condition precedent to the refunds of the difference in fees and charges erroneously collected that the difference shall be greater than five Syrian pounds and that an application in writing shall be filed within a maximum period of 6 months as from the date of collection. ‏

Article 43 ‏

The establishment shall draft the forms of tenancy contracts and shall define the conditions of such tenancy. These contracts shall be considered temporary tenancy contracts and shall not be governed by the provisions of the law of rent. ‏

The maximum period of the temporary tenancy contract shall be: ‏

One year in respect of open places intended to be occupied for storage purposes without erecting buildings or installing industrial equipment. ‏

Fifteen years in respect of open places intended to be occupied for the purpose of erecting buildings for storage. ‏

Twenty years in respect of open places intended to be occupied for the purpose of erecting buildings for converting industries and processes. ‏

The ownership of the buildings and appurtenances shall devolve on to the establishment after the expiry of the period as specified in the tenancy contracts. ‏

These contracts shall be renewed, after the expiry of their period, from year to year for a rent to be paid in advance and to be fixed by mutual agreement unless the person concerned expresses his intention in writing not to renew the contract three months before the expiry of the term. ‏

Article 44 ‏

If the establishment finds that the person concerned has suspended his activity for two consecutive years of five years at intermittent intervals without a lawful excuse, the establishment shall have the right, with the approval of the board, to determine the contract or to refuse the renewal of the contract, and this shall be attended by all consequences attending the expiry of the initial period of the contract. ‏

Article 45 ‏

The industrial operation in free zones shall be mainly oriented for export. There may be allowed with the approval of the ministry of economy and foreign trade, upon a proposal by the establishment, the admission of a percentage of the exports of such industries into the Syrian markets by way of exclusion from the foreign trade laws and regulations and from the restrictions imposed on import except such restrictions relating to the limitation or restriction of import to a public sector body. For this portion of production there shall be granted automatic import licenses with no need to transfer the value abroad and this portion of production shall be exempt from duties pro rata the local materials incorporated in manufacture. ‏

Article 46 ‏

It shall be observed that the industries set up in free zones shall not lead to the imitation or competition of such industries in the country except in such where they enter into a partnership with local industries .priority shall be given to the following industries with due regard to the industrial strategy and the requirements of the development plans in the Syrian Arab Republic: ‏

Industries for which local raw materials or locally manufactured components are available.

Industries that integrate with locally existing industries. ‏

New industries that are not locally existing and depend on modern technical production. ‏

Industries that meet the need of local consumption and help to dispense with import from abroad. 

Industries that help to employ a greater number of hand labour. ‏

Article 47 ‏

The prospective tenant shall submit an application to the establishment in which he shall specify the purpose of tenancy, the types of goods intended to be stored or converted , the places intended to be occupied, and the buildings or the industrial enterprises and equipment he wishes to erect or set up thereon provided that the prospective tenant shall be residing in the city or town in which the free zone is situate, or shall have therein a service address or a representative. ‏

Applications for tenancy submitted by foreign natural or juristic persons shall not be allowed unless such persons have established a head office or a branch in the Syrian Arab Republic or unless such persons have a representative who is a Syrian Arab Citizen. ‏

In this latter case the application shall be accompanied by a copy of the contract made between the two parties provided that this contract shall, anyhow, be registered in accordance with the domestic laws. 

The area of the land intended to be occupied by the prospective tenant shall not be more than 10% of the area allocated for private tenancy inside the free zone. ‏

Article 48 ‏

The contracts made between the two parties shall specify the mode and dates of payment of the tenancy fee. There shall be collected from the prospective tenant a tenancy fee for at least one year in advance. As regards contracts for less than one year, the fee shall be collected in advance for the whole term of the contract. ‏

Article 49 ‏

The director shall determine the applications submitted for tenancy of land for storage and the board shall determine, upon a proposal by the director, the applications submitted for tenancy of land to set up industrial enterprises. ‏

Buildings and industrial enterprises shall be set up on the land tenanted as indicated on the drawing with all roads and means for protection from fire risks upon an approval by the establishment. There shall be observed the technical procedures as to storage, converting and manufacturing and any modification in these drawings shall be subject to an approval from the establishment. ‏

Article 50 ‏

The tenants of private places shall observe and comply with the rules for protection from fire and explosion. Insurance shall cover civil liability to such an extent at the discretion of the establishment and shall be made with accredited insurance companies. This insurance shall be obligatory at the expense of the tenants. ‏

Article 51 ‏

The goods shall be forwarded to the private places in the free zone at the request of the tenants provided that these goods shall be for the tenants or that these goods are regularly assigned to them. Further these goods shall be relevant to the purposes for which the place has been allocated in the tenancy contract and shall be entered in the registers of the places tenanted. Goods shall be chargeable in case of the violation of any of the conditions referred to herein to a double storage fee. ‏

Article 52 ‏

If the tenants of the private places violate the provisions of these regulations or the terms of the tenancy contracts made with them , the establishment shall address a notice to them to remedy the violation within such a time limit as specified in the notice. In default to remedy the violation within the time limit as set in the notice, the establishment shall have the right , with the approval of the board , to rescind the contracts and to specify a reasonable period for eviction. In this case the buildings shall become the property of the establishment with no indemnity. If the persons concerned fail to remove their goods, machines and equipment within the stated time limit, the establishment shall have the right to do so at their own expense and the goods, machines and equipment shall be stored at their own expense in the general warehouses and yards. ‏

Article 53 ‏

The tenants of private places shall be responsible for all damage caused by them, their representatives or their subordinates, or by reason of their enterprises or goods to other buildings or enterprises or the goods lying therein inside and outside the free zone, and their observance of the safety rules imposed on them shall not release them from liability. ‏

Article 54 ‏

The tenants of private places shall keep and maintain registers to enter the incoming and outgoing goods. These registers shall be maintained in such forms as specified by the establishment. ‏

Article 55 ‏

The tenants of private places shall keep and maintain records of the names and number of their employees and workers and the date of their employment in the free zone and lists thereof shall be sent direct to the establishment. All amendments to the particular of the records, increase or decrease, shall be notified to the establishment. The tenants shall hand each of their employees and workers a sign in such a uniform model to be specified by the establishment to carry the name of the employer and the number of the warehouse or the industrial enterprise and to be put on the arm when on duty inside the free zone. These signs shall be left with the establishment’s watchmen at the gates of the free zone when they exit. ‏

The tenants of private places shall be responsible for the behavior of their employees and workers. The establishment shall have the right to prevent any of such employees and workers from entering into the free zone if and when such person violates the regulations of work therein. ‏

Article 56 ‏

The establishment may allow the tenants of private places to assign to third party the right of tenancy of the land they occupy and the enterprises erected on such land within the following conditions: ‏

Assignment shall be made before the competent official of the establishment. ‏

A new contract shall be made between the assignee and the establishment and shall be subject to all terms of the former contract with the assignor. ‏

The assignment fee as set in the tariff of fees shall be paid. ‏

Article 57 ‏

The tenants of private places who carry on an industrial activity in the free zone shall keep and maintain special records of the industrial machines used in such places to enter their admission and exit, with certain records assigned for machine from the domestic market, and there shall be entered therein such particulars as may be necessary such description, number, mark, origin, value, destination, type and such other useful data. ‏

Article 58 ‏

The goods that have been admitted into the private places and have undergone converting processes shall be entered in special records to give all necessary clarifications of the converting, mixing and manufacturing processes and to show the type of the materials that have been used in the new production, their quantities, their origin and all such relevant data, and shall be cleared in such other records and registers referred to in these regulations. The products that have been converted or manufactured in the free zone shall carry the expression “free zone in …” in a product the board resolves to be relieved from this expression. ‏

Free markets ‏

Article 59 ‏

The establishment may establish free markets inside the free zones, in the main cities in the country, in civil airports and in seaports. ‏

The duty free shop shall consist of commercial stores for the wholesale or retailsale of foreign and national goods to passengers in transit and international passengers for re-export, diplomatic and consular corps, and the like, and the general rules of free zones shall apply to these duty free shops in with the nature of their composition and the purpose for which they have been established. ‏

The establishment shall specify the types of goods, the sale conditions and the means of control in agreement with the administration of customs and the administration of the airport as the case may be provided that sale shall be in such acceptable foreign currency. ‏

The operations allowed in the free markets shall be limited to the sorting, packing, division and grading operations and such operations as may be necessary for preservation. ‏

Article 60 ‏

The body assigned the duty by the establishment to operate the duty free shop shall be responsible towards the establishment for all violations and faults committed direct by the said body, its agents or its subordinates. ‏

Exit of Goods ‏

Article 61 ‏

Goods shall be exited from the free zone upon an application in writing by the person concerned to the establishment and the application shall show the type of the goods, their origin, and the number and types of parcels. ‏

If the goods have undergone any of the converting or manufacturing operations referred to in these regulations, all clarifications of the operation in question shall be given, further, in case of mixing or new production, the types and sources of the parcels mixed shall be given, so that the customs service would be in a good position to exercise control and to compute the customs duties that may be chargeable on such materials. ‏

Article 62 ‏

In exiting the goods the following shall be observed: ‏

The fees due to the establishment for such goods shall be paid and the relevant customs formalities shall be channeled. ‏

The nominal warehouse warrants or the receipts to order referred to in these regulations shall be returned. ‏

The delivery orders and such other documents shall be produced, if and when necessary, according to such instructions issued by the establishment. ‏

The goods shall be removed to the inspection room for survey and customs formalities. This room shall be set up at the expense of the establishment at such place to be agreed on with the administration of customs. This room shall be under the joint watchman service of both the establishment and the customs. ‏

The owner of the goods or his representative shall sign a note in acknowledgement of receipt. ‏

Article 63 ‏

If and when a parcel is opened for customs inspection or at the request of the person concerned, the soundness of the parcels shall be verified before opening, so that if it appears that a parcel is suspicious a customs report shall be made in cooperation with the establishment. If no customs report is made, this parcel that has been opened is considered to be intact. In this case the establishment shall not be responsible for any discrepancy that may transpire in the contents of the parcels when opened. ‏

Operation of Banks ‏

Article 64 ‏

Banking enterprises may be licensed to be established within free zones to exercise functions in financing different commercial and industrial activities and operations and in rendering different bank services as may be required for the activities of the operators in these zones. ‏

Article 65 ‏

There shall be specified by an order from the board the tenancy fee and duration. ‏

Article 66 ‏

The board shall formulate the provisions concerning the operation of banks, especially the provisions: ‏

To regulate the granting of loan ‏

To specify the capital and reserve of the bank ‏

To specify the bank operations allowed ‏

To specify such date and information to be submitted to the establishment to verify the sound standing and activity of the bank ‏

To specify the role of the establishment in exercising control and supervision of the bank operations ‏

To regulate the liquidation of the bank ‏

To specify the securities to safeguard the rights of the customers of the bank and the provisions for the regulation of the operation of bank ‏

To specify the violations, fines and administrative penalties. ‏

In formulating such provisions there shall be observed that they are consistent with the purpose of creating free zones and the nature of operation without due observance of the provisions of laws governing bank operations in the country.

General & Miscellaneous Provisions ‏

Article 67 ‏

Foreign goods shall not be allowed to be consumed in the free zones for personal use before payment of such customs duties and other taxes and duties chargeable. ‏

Further residence in free zones shall not be allowed save by a special permission from the establishment as may be required for running the work. ‏

Article 68 ‏

All national and foreign vessels may arrange for the supply of all marine equipment as they may require from the free zone. ‏

National and foreign vessels, load over 150 net marine tons, may arrange for the supply of foodstuffs, cigarettes, drinks, oil, and all materials as necessary for their machines from the free zone. The establishment shall have the right suspend the supply operation if and when fraud and abuse are established. ‏

Article 69 ‏

Any person who enters into the free zone, or deals with it, or uses its constructions and facilities shall observe and comply with these regulations. ‏

Article 70 ‏

No person shall be allowed to enter into the free zone unless he holds a special permit from the director of the free zone for this purpose to the exclusion of the customs guards and the competent customs officials if and when necessary for the exigencies of work. ‏

Article 71 ‏

Working hours and procedures to enter into and exit from the free zone shall be specified by the director of the establishment ‏

 
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