Aid to Pioneer Industries Act

Link to law: http://laws.gov.ag/acts/chapters/cap-14.pdf
Published: 1950

Aid to Pioneer Industries (CAP. 14 1

CHAPTER 14

THE AID T O PIONEER INDUSTRIES ACT

Arrangement of Sections
Section

1 . Short title.
2. Interpretation.
3. Cabinet may subject to conditions, declare an industry

to be a pioneer industry.
4. Cabinet may declare persons to be pioneer

manufacturers.
5. Relief from customs duty.
6. Special provisions relating to articles imported or pur-

chased free from customs duty.
7. Restriction upon disposition of articles acquired free of

customs duty.
8. Relief from income tax.
9. Restriction on employment of persons in a pioneer

enterprise.
10. Provisions relating to revocation or recognition of

pioneer manufacturers.
11. Restriction on use of pioneer factory.

SCHEDULE.

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Aid to Pioneer Industries (CAP. 14 3

- - --

AID TO PIONEER INDUSTRIES

(5th December, 1950 .) 211950.
711956.
811969.

1811975.
2311976.
1811989.

1. This Act may be cited as the Aid to Pioneer short title.
Industries Act.

2. In this Act- Interpretation.

"Comptroller of Customs" means the officer for the
time being lawfully discharging the duties of Comp-
troller of Customs or anyone authorised by him in
writing to act on his behalf;

"construction day" means the day specified in any
application under section 4 as being the day on or
before which it is intended to commence to con-
struct the factory to which the application relates;

"factory" includes all buildings and structures within
the same curtilage used for-

(a) the housing of machinery, plant or
apparatus of any description for the manufac-
ture of any product or the generation of power
for such manufacture; or

( 6 ) the storage of any raw materials, fuel
or stores necessary for the manufacture of such
product; or

(6) the storage of any such product prior
to the time at which the property in such goods
passed to any person other than the manufac-
turer thereof; or

(4 the proper administration of the
business of the manufacturer in relation to the
manufacture of such product and the sale
thereof; or

(e) canteens, rest rooms, recreation
rooms, lavatories, baths and wash rooms for

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4 CAP. 14) Aid to Pioneer Industries

workers employed by the manufacturer in the
manufacture of such product or in any pro-
cess incidental to such manufacture;

L < pioneer enterprise" means the manufacture by a
pioneer manufacturer at a pioneer factory of any
relevant pioneer product or the sale by him of any
relevant pioneer product so manufactured;

"pioneer factory" means any factory established or
occupied for the purposes of a pioneeer industry;

< < pioneer industry" means an industry declared under
section 3 to be a pioneer industry;

"pioneer manufacturer" means a person declared under
section 4 to be a pioneer manufacturer;

"pioneer product", when not preceded by the word
< < relevant", means any product declared under sec-
tion 3 to be a pioneer product;

"production day" means the day specified in any
application under section 4 as being the day on or
before which it is anticipated that the factory to
which the application relates will commence to pro-
duce in marketable quantities the pioneer product
intended to be manufactured therein;

"relevant pioneer product" used in relation to any
pioneer manufacturer means the pioneer product
of the pioneer industry in relation to which such
pioneer manufacturer has been declared under sec-
tion 4 to be a pioneer manufacturer.

Cabinet may
subject to

3. (1) Subject to the provisions of subsection (Z), the
conditions, Cabinet may, if they are satisfied that it is expedient in the
declare an public interest so to do, by order declare any industry which
industry to be a
pioneer industry. is not being conducted in Antigua and Barbuda on a com-

mercial scale or at all and for which there are insufficient
manufacturing facilities in Antigua and Barbuda to enable
such industry to be conducted on a commercial scale, or any
industry for which, in their opinion, there is favourable pro-
spect of further development, to be a pioneer industry and
any specified product of such industry to be a pioneer
product.

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Aid to Pioneer Industries (CAP. 14 5

(2) Before making any order under subsection (I) , the
Cabinet shall-

(a) cause a notice to be published in at least three
issues of a newspaper circulating in Antigua and
Barbuda at intervals of not less than one week, and twice
in the Gazette, setting out the order which it is proposed
to make and inviting any person who objects to the
making of such order to give notice in writing of his
objection and of the grounds on which he relies in sup-
port thereof to the Secretary to the Cabinet on or before
such day as may be specified in such notice; and

( 6 ) consider any objections which may have been
received pursuant to such notice.

4. (1) The Cabinet, on the application of any per- Cabinet may
declare persons

son who is desirous of establishing a pioneer factory in to be .ioneer - A
Antigua and Barbuda for the purpose of manufacturing any manufacturers.
pioneer product or products, if they are satisfied that it is
expedient in the public interest so to do, and in particular
having regard to the number of pioneer factories already
established or about to be established for the manufacture
of such pioneer product or products and to the output or
anticipated output of such pioneer factories, may in their
absolute discretion by order declare such person to be a
pioneer manufacturer in relation to a pioneer factory and
pioneer industry specified in such order with effect from such
date as may be specified:

Provided that the Cabinet may in any such order impose
continuing conditions to be observed by the pioneer manufac-
turer and subject to which the status of pioneer manufac-
ture may be retained.

In this section the expression "continuing conditions"
means conditions which may continue for a period of not
more than five years.

(2) Every application under subsection (1) shall be in
writing and shall-

(a) specify the locality in which it is proposed to
establish the factory in respect of which the application
is made; and

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6 CAP. 14) Aid to Pioneer Industries

( 6 ) specify the construction day which shall not be
later than twelve months after the date of the granting
of the application; and

( 6 ) specify the production day which shall not be
later than eighteen months after the construction day;
and

(6) specify the pioneer product or products intended
to be manufactured at the factory.

Relief from
customs duty.

5 . (1) Every pioneer manufacturer shall be entitled,
upon the issue to him of a licence bv the Cabinet and sub-
ject to such terms and conditions as &ay be imposed by such
licence, to import into Antigua and Barbuda free of customs
duty, or to purchase in Antigua and Barbuda subject to
refund of customs duty, during a period of five years com-
mencing on the date on which he became a pioneer manufac- -
turer by virtue of an order made under section 4, such of

Schedule. the articles included in the Schedule as may be specified in
such licence, if he satisfies the Comptroller of Customs that
such articles are or were required for the construction, altera-
tion, reconstruction or extension of the pioneer factory, or
for equipping such pioneer factory or the extension thereof
for the purpose of manufacturing the relevant pioneer pro-
duct or products, so however, that relief from customs duty
shall not be granted under this section in respect of articles
which in the opinion of the Comptroller of Customs are or
were intended for the purpose of effecting repairs to such
pioneer factory or extension thereof, or to any apparatus,
machinery, applicances or equipment in any pioneer factory
or extension thereof.

(2) Every holder of a licence issued under the authority
of the last preceding subsection who satisfies the Comptroller
of Customs-

(a) that any article specified in the licence has been
purchased by him in Antigua and Barbuda subject to
the terms and conditions imposed by the licence and
that customs duty was paid upon the importation into
Antigua and Barbuda of such article;

( 6 ) as to the amount of the customs duty so paid,

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Aid to Pioneer Industries (CAP. 14 7

shall be entitled to be refunded by the Comptroller of
Customs the amount of the customs duty so paid:

Provided that where the holder of the licence satisfies
the Comptroller of Customs that he is unable to ascertain
the amount of the customs duty paid, he shall be entitled
to be paid by the Comptroller of Customs by way of refund
of customs duty such sum as is, in the opinion of the Comp-
troller of Customs, reasonable:

Provided further that no refund of customs duty shall
be made under this subsection where the amount of customs
duty so paid or the sum which the Comptroller of Customs
assesses as a reasonable sum to be paid by way of refund
of customs duty, as the case may be, is less than ten dollars.

6. (1) Every pioneer manufacturer who imports into Special
provisions

Antigua and Barbuda or purchases in Antigua and Barbuda relating to
any article in respect of which he has been granted relief a r t i ~ l e s - ~ m p o ~ ~ ~ d

or purchased free
from customs duty under the provisions of section 5 shall- fro, customs

duty.
(i) keep such record in such form and containing

such particulars as may be required by the
Comptroller of Customs of the articles so
imported or purchased by him; and

(ii) cause such articles to be marked with such
mark and in such manner as may be
required by the Comptroller of Customs;
and

(iii) permit the Comptroller of Customs at all
reasonable times to inspect such record and
to have access to any factory or warehouse
under his control for the purpose of examin-
ing any such articles which the Comptroller
of Customs may believe to be therein and of
satisfying himself of the accuracy of the par-
ticulars in relation to such articles contained
in such record.

(2) Every pioneer manufacturer who contravenes any
of the provisions of this section shall be guilty of an offence
and on summary conviction therefor shall be liable to a fine
of twenty-five thousand dollars and in default of payment
thereof to be imprisoned for a term not exceeding six months
or to both such fine and imprisonment.

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8 CAP. 14) Aid to Pioneer Industries

Restriction upon
disposition of

7. (1) NO article acquired by any pioneer manufac-
articles acauired turer free of customs duty under the ~rovisions of this Act
free of customs shall be sold, given away or otherwise disposed of by such
duty.

pioneer manufacturer except-

(a) in the case of an assignment of the pioneer fac-
tory for the purpose for which such article was acquired,
to the assignee of such factory; or

(b) upon the pioneer manufacturer paying, or
giving security to the satisfaction of the Comptroller of
Customs for the payment of-

(i) an amount equivalent to the amount of
customs duty which, but for the provisions of
this Act, would have been payable upon the
importation into Antigua and Barbuda of such
article, where such article was so imported by
such pioneer manufacturer, or

(ii) an amount equivalent to the amount refund-
ed to such pioneer manufacturer by way of
relief from customs duty under the provisions
of subsection (2) of section 5, where such article
was purchased in Antigua and Barbuda by
such pioneer manufacturer; or

(c) after the expiration of five years from the date
of acquisition of such article.

(2) Every pioneer manufacturer who contravenes any
of the provisions of this section shall be guilty of an offence
and on summary conviction therefor shall be liable to a penal-
ty of three times the value of the article in respect of the
disposal of which he contravenes such provisions, and in
default of payment thereof to be imprisoned for a term not
exceeding six months.

Relief from 8. (1) A pioneer manufacturer shall, during the period
income tax.

of five years from the production day or from such other
day as may be substituted therefor under the provisions of
section 10 (hereinafter called the tax holiday period), be
exempt from the payment of income tax in respect of all pro-
fits or gains earned from the operation of the pioneer enter-
prise in that period.

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Aid to Pioneer Industries (CAP. 14 9

(2) Where a loss is incurred in the operation of a pioneer
enterprise during the tax holiday period such loss shall, for
the purposes of assessment to income tax, be carried forward
and allowed as far as possible against subsequent profits or
gains earned from such enterprise:

Provided that any loss so incurred during the tax holi-
day period, in so far as it has not been fully allowed as
aforesaid, shall not be available for carry forward beyond
the end of the third year of assessment next following that
in which the tax holiday period terminated.

(3) In any case in which the termination of the tax holi-
day period does not coincide with the termination of the
accounting period of a pioneer enterprise, the profits or gains
or, as the case may be, the loss for the accounting period
in which the last day of the tax holiday period falls shall,
for the purposes of this section, be apportioned between the
parts of the said accounting period which respectively precede
and follow the termination of the tax holiday period.

(4) For the purposes of this section the profits or gains
or loss shall be computed in like manner as profits or gains
or loss are computed for the purposes of assessment to income
tax and, subject to the provisions of this section, any person
who has been declared a pioneer manufacturer shall be sub-
ject in all other respects to the provisions of the Income Tax Cap. 212-
Act.

9. (1) No pioneer manufacturer shall, without the Restriction
employment of prior approval of the Cabinet in writing, employ within persons in a

Antigua and Barbuda in a pioneer enterprise any person pioneer enterp ise.
not ordinarily resident in Antigua and Barbuda or in any
of the countries hereinafter specified:

Provided that if he satisfies the Cabinet that the ser-
vices of any skilled workmen, artisans or mechanics or of
any persons possessing particular professional or technical
qualifications or skills or experience are necessary for the
proper conduct of the pioneer enterprise and that such ser-
vices cannot be otherwise obtained the Cabinet may by permit
in writing authorize him to employ within Antigua and
Barbuda such number and classes of skilled workmen,
artisans and mechanics, and of persons possessing particular
professional or technical qualifications or skills or experience,

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10 CAP. 14) Aid to Pioneer Industrie~

not ordinarily resident in Antigua and Barbuda or in any
of the countries hereinafter specified, and for such periods
as may be specified in the permit.

(2) The Cabinet may require any pioneer manufacturer
to make such return of-

(a) the number of persons in each category of work
who are ordinarily resident in Antigua and Barbuda or
in any of the countries hereinafter specified, and

(b ) the number of persons in each category of work
who are not ordinarily resident in Antigua and Barbuda
or in any of the countries hereinafter specified,

employed by him within Antigua and Barbuda in a pioneer
enterprise as the Cabinet may think fit.

(3) The countries contemplated by this section are
Anguilla, Barbados, Belize, the British Virgin Islands, the
Commonwealth of Dominica, Grenada, the Co-operative
Republic of Guyana, Jamaica, Montserrat, Saint Christopher
and Nevis, Saint Lucia, Saint Vincent and the Grenadines
and the Republic of Trinidad and Tobago.

Provisions
relating to

10. (1) Where any pioneer manufacturer fails or
revocation or neglects- -
recognition of
pioneer (a) to commence to construct the pioneer factory
manufacturers. in relation to which he is a pioneer manufacturer on

or before the construction day; or

(b) to commence to manufacture the relevant
pioneer product or products in marketable quantities
at such pioneer factory on or before the production day,

the Cabinet may by notice in writing require him within
thirty days of such notice either-

(i) to commence to construct the pioneer factory
or to commence to manufacture the relevant
pioneer product or products at the pioneer fac-
tory in marketable quantities, as the case may
be; or

(ii) to establish to the satisfaction of the Cabinet
that his failure or neglect to commence to
construct the pioneer factory or to

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Aid to Pioneer Industries (CAP. 14 11

commence to manufacture the relevant
pioneer product or products in marketable
quantities, as the case may be, was due to
some cause beyond his control, and that
there is a reasonable prospect of his com-
mencing to construct the pioneer factory or
commencing to manufacture the relevant
pioneer product or products in marketable
quantities, as the case may be, within such
time as the Cabinet may consider to be
reasonable.

(2) Where any pioneer manufacturer, having been re-
quired by notice in writing under subsection (1 ) so to do,
fails to satisfy the Cabinet-

(a) that his failure or neglect to commence to con-
struct the pioneer factory to which such notice relates
on or before the construction day, or to commence to
manufacture the relevant pioneer product or products
at such factory in marketable quantities on or before
the production day, as the case may be, was due to some
cause beyond his control; or

( b ) that there is reasonable prospect of his com-
mencing to construct such pioneer factory or commen-
cing to manufacture the relevant pioneer product or
products in marketable quantities at such pioneer fac-
tory within such time as the Cabinet may consider
reasonable,

the Cabinet shall revoke the order under section 4 declaring
such person to be a pioneer manufacturer in relation to the
pioneer factory and pioneer industry in respect of which such
order was made and thereupon the provisions of sections 5
and 8 shall cease to apply to such person in respect of such
pioneer factory and such pioneer industry and the pioneer
factory shall cease to be a pioneer factory.

(3) Where any pioneer manufacturer having been re-
quired by notice in writing under subsection (1) so to do,
satisfies the Cabinet-

(a) that his failure or neglect to commence to con-
struct the pioneer factory to which such notice relates
on or before the construction day, or to commence to
manufacture the relevant pioneer product or products

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12 CAP. 14) A i d to Pioneer Industries

at such pioneer factory in marketable quantities on or
before the production day, as the case may be, was due
to some cause beyond his control; and

(6) that there is reasonable prospect of his com-
mencing to construct such pioneer factory or commen-
cing to manufacture the relevant pioneer product or
products in marketable quantities at such pioneer fac-
tory, as the case may be, within such time as the Cabinet
may consider reasonable,

the Cabinet shall by order declare that there shall be
substituted for the construction day or for the production
day, as the case may be, some other day specified in such
order, and thereupon the provisions of this Act shall take
effect as if the day specified in such order was the construc-
tion day or the production day, as the case may be, specified
in the application under subsection (2) of section 4.

(4) Where the Cabinet is satisfied that any pioneer
manufacturer has contravened any of the provisions of this
Act and that having regard to all the circumstances of the
case it is expedient so to do, they may revoke the order under
section 4 declaring such person to be a pioneer manufac-
turer in relation to the pioneer factory and pioneer industry
in respect of which such order was made and thereupon the
provisions of sections 5 and 8 shall cease to apply such person
in respect of such pioneer factory and such pioneer industry
and the pioneer factory shall cease to be a pioneer factory.

(5) Where the Cabinet is satisfied that any pioneer
manufacturer has broken any of the conditions contained
in the order declaring him to be a pioneer manufacturer and
subject to which he was so declared to be a pioneer manufac-
turer and that having regard to all the circumstances of the
case it is expedient so to do, they may revoke the order made
under section 4 declaring such person to be a pioneer
manufacturer in relation to the pioneer factory and pioneer
industry in respect of which such order was made.

(6) When any order made under section 4 is revoked
under the provisions of subsection (2) the person who in such
order was declared to be a pioneer manufacturer shall be
liable to pay to the Comptroller of Customs all sums which
but for the provisions of section 5 would have been payable

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Aid to Pioneer Industries (CAP. 14 13

as customs duty on the importation of any articles or any
refund of customs duty he has received in respect of the pur-
chase of articles in Antigua and Barbuda for the construction,
alteration, re-construction or extension of the pioneer fac-
tory in relation to which he was declared under section 4
to be a pioneer manufacturer, or for equipping such pioneer
factory or any extension thereof for the purpose of manufac-
turing the relevant pioneer product or products.

(7) When any order made under section 4 is revoked
under the provisions of subsection (5) the provisions of sec-
tion 5 and section 8 shall be deemed never to have applied
to the person declared to be a pioneer manufacturer under
such order in respect of the pioneer factory and pioneer
industry specified in such order; and such person shall, not-
withstanding anything contained in the Customs Duties Act, Cap- lZ5-
or the Income Tax Act, be liable to pay to the Comptroller Ca~.212.
of Customs all sums which, but for the provisions of section
5 would have been payable as customs duty on articles
acquired for the construction, alteration, re-construction or
extension of the pioneer factory, or for equipping such factory
or any extension thereof for the purpose of manufacturing
the relevant pioneer product or products, and all sums refund-
ed to him by the Comptroller of Customs under the authority
of subsection (2) of section 5, and to the Commissioner of
Inland Revenue such income tax as would but for the provis-
ions of section 8 have been payable in respect of the pioneer
enterprise:

Provided that if in the opinion of the Cabinet liability
to the payment of any such sums or any such tax would
cause undue hardship or if for any other reason the Cabinet
deem it expedient so to do, the Cabinet may remit the whole
or any part of such sum or tax.

(8) Any sum which may be payable to the Comptroller
of Customs under the provisions of subsection (6) may be
recovered in a Court of competent jurisdiction as a debt due
to the Government.

11. ( I ) Subject to the provisions of subsection (3) no 4tpjr~:z
factory, whether it is still a pioneer factory or not, which factory.
has been specified as a pioneer factory in any order under
the provisions of section 4 shall, without the prior approval

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14 CAP. 14) Aid to Pioneer Industries

of the Cabinet, be used at any time within ten years from
the date of such order for any purposes other than those of
the pioneer industry for the purposes of which such factory
was established as a pioneer factory.

(2) Any person using any such factory in contraven-
tion of the provisions of subsection (1) shall be guilty of an
offence and on summary conviction therefor shall be liable
to a fine not exceeding five thousand dollars and in default
of payment thereof to imprisonment for any term not
exceeding six months and in the case of a continuing
offence to a further fine not exceeding three thousand dol-
lars in respect of each day during which the offence contin-
ues.

(3) The provisions of this section shall not apply to
any factory which has ceased to be a pioneer factory and in
respect of which all sums which are payable to the
Comptroller of Customs and to the Commissioner of Inland
Revenue under the provisions of subsection (6) or sub-
section (7) of section 10, as the case may be, have been paid.

SCHEDULE

All building materials, tools, plant, machinery, pipes, pumps,
conveyor belts, or other appliances and materials necessary for and
used in the construction, alteration and extension of the factory or
for equipping the factory or any extension thereof for the manufac-
ture and preparation for sale by the pioneer manufacturer of the rele-
vant pioneer product or products.
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