EXPORT INDUSTRY ENCOURAGEMENT
THE EXPORT INDUSTRY ENCOURAGEMENT ACT
ARRANGEMENT OF SECTIONS
1. Short title.
PART I. General
2. Interpretation.
3. Power of Minister to declare approved export product.
4. Declaration of approved export manufacturers.
5. Applications for approval.
6. Objections to proposals to approve a product.
7. Limitation of powers of Minister to approve manufacturer.
8. Minister to have absolute discretion to refuse approval.
PART I I . Concessions
9. Concessions.
lo. [Repealed by Acr 18 of 1986.1
11. Application of concessions under Part VI of the Industrial Incen-
tives Act.
12. Production to be in bond: duty fiee importation of raw materials.
13. Additional relief from customs duty on plant, etc.
PART I1 1. Miscellaneous
14. Control of manufacturer by Commissioner.
IS. Restriction of sale of product in Jamaica.
16. Penalties.
17. Order under section 4 may be revoked.
18. Regulations.
19. Restriction of application of section 12, 13, 14, I5 or 16.
20. Saving.
PART IV. Supp(y qJ'senVces
2 1. Interpretation.
22. Categories of export services.
23. Declaration of approved export service provider.
24. Application for approval.
( I ' h c I I I ~ ~ I I Z ~ O I I 01'1111'1 P;I;Q id ~ I I I I ~ I L ~ I ~ ~ h! I. h. 1 1 2 2002 1
EXPORT LVDUSTRY ENCOURAGEMENT
25, Matters ancillary to declaration of service provider.
26. Concessions.
27. Income tax relief in relation to fbrnishing of approved export services.
28. Relief from customs duties and general consumption tax.
29. Power of Minister to permit disposal of imported articles.
30. Supervision re duty free importation.
31. Additional relief from customs duty and general consumption tax on
plant, etc.
SCHEDULES.
0
EXPORT LVDUSTRY ENCO URAGEME“ 3
Llrs
49 or 1956.
13 of 1960.
.Am
I 1 o i 1968.
3rd kb.,
THE EXPORT INDUSTRY ENCOURAGEMENT ACT 42 0r1969
[251h October, 1956.1 sa.2.4.5, 56 or I914
I 2 Of 1985 !+ h..
18oi19%6.
S 64.
1 6 0 r i w
5 “rzoai.
1. This Act may be cited as the Export Industry Shodtitle.
Encouragement Act.
PART I. General
2. In this Act unless the context otherwise require- 1”lCIpmta-
“the Agreement” shall have the meaning assigned thereto y;?~w-i
“approved export product” when not preceded by the word
“relevant” means a product of manufacture approved
by the Minister under section 3 manufactured by an
approved export manufacturer;
“approved export manufacturer” means a company
approved by the Minister under section 4 for the
manufacture of an approved export product;
“benefit” means the relief in regard to income tax or
customs duties enjoyed by an approved export
manufacturer in virtue of this Act;
“Commissioner” means the Commissioner of Customs and 1211985
“company” means any company incorporated or registered
under any enactment in force in the Island or any
company which though incorporated or registered
outside the Island,’carries on business or has an ofice
or place of business therein;
“custom laws” shall have the same meaning as in the
Customs Act;
“date of production” means the date declared pursuant to
subsection (2) of section 4;
by section 2 of the Industrial Incentives Act; s. 5
Excise; X h
inle I I 1 c ~ u s l ~ l l 01 i l h s p a p i s nutl1or8zed I? L N. I I !:200? I
1 i
'fiicLui\" mcms the site arld the buildings and other
struc~trrcs thereon specified as constituting a factory in
iili ur&i ~mde under section 4;
"n'lir~izier" iicans the Minister responsible for industrial
kic.vclop~uent;
"iclevati~ approved export product" used in relation to any
appro vsci export nianufacturer means the approved
cqitirt product in relation to which a manufacturer has
kcr i declared under section 4 to be an approved export
manufacturer.
( I ) Sub.ject to the provisions of section 6, the Minister
1 1 1 a v . t q older. declare that a product of manufacture shall be an
i ~ l t p ~ o ~ c d export poduct for the purposes ofthis Act as regards
sucli approved cnpon manufacturers of that product as may be
declared by vrder pursuant to subsection (1) of section 4.
.i.
{ ] A ) The Minister may, by order, declare that a product of
IluuFictuIe shall be an approved export product for the
t iutpostzb of this Act as regards such approved export
riranufacturei.s of that product as nlay be declared by order
pursuant to subsection (,IA) of section 4.
(2) An order m y be made under this section in respect
\ J t ' d product which is being manufactured in the Island at the
d i m of the order.
(.;) Suhject to subsection (4), the Minister, before making
a11 order under this section in relation to a product of
,rriirdacture, shall also have regard to the following
considerations-~
( U ) the effect which approval would have on existing
industries; and
( h ) the amount of risk involved in establishing a
successf~~l manufacture and export of the product.
(4) The Minister may, by notice published in the G m r r e .
prescribe provisions which shall. in relation to thc
-_ ~
, l , C , , , \ l . , ~ ,,,, 11, , , , , ~ , l . ~ ~ I C , l . l I I I / , I , , , , C t l l l i I i* l l?:I ' : ' '~ I
0
EXPORT INDUSTRY EhCO URAGEMENT
making of orders under subsection (1~1, have effect in lieu
of the provisions of paragraphs (a) and (b) of subsection
(3), but nothing in the foregoing provieions of this sub-
section shall be construed to prevent any of the provisions
so prescribed from being the same as all or any of the
provisions of those paragraphs.
5
4.-( 1) Subject to the provisions of section 7, the Minister Declaration
of approved
m u f a c -
may, by order, declare that a company which is manufac-
product declared under subsection (1) of section 3 is an L.N.
approved export manufacturer for the purposes of this Act C.N.
if he is satisfied that the company-
turing, or proposes to manufacture, an approved export tllrcrs.
I 4 S ' . 4 j i S
2 7 5 w
(n) proposes to manufacture the approved export pro- 4213969
duct exclusively fo: export from this Island to 56/1974
countries other than those belonging to the Carib- s,5 .
bean Common Market;
(b) is adequately financed;
(c) has adequate trained personnel in its employ or is
able to obtain the services of such personnel;
(n') has access to the necessary technical information;
(e) is able to obtain adequate raw materials;
(fl possesses, or will possess, the necessary factory.
3rd Sch.
( 1 ~ ) Subject to the provisions of section 7, the L.N.
Minister may, by order, declare that a company which is G.N.
manufacturing or proposes to manufacture an approved 275!'80
export product declared under subsection ( 1 ~ ) of section
3 is an approved export manufacturer for the purposes of
this Act if, in regard to that company, he is satisfied as
to the matters for the time being prescribed under subsection
( 1 ~ ) with reference to such a company, but nothing so
prescribed shall require the Minister to be satisfied that
the company proposes to manufacture the approved export
product exclusively for export.
I49. i j iX
[?he inclusion of this page is authorized by L.N. 57/1981]
6 EXPORT INDUSTRY ENCOURAGEMENT
L.N.
149A178
G.N.
275/80.
L.N.
1#A/78
C.N.
275180.
L.N.
149.4 178
G.N.
215lSO.
1311960
S . 2 (b).
(1B) The Minister may, by notice published in the
Gazette, prescribe matters as to which the Minister shall.
in conformity with subsection (In), be satisfied before he
makes an order thereunder, and different matters may be
so prescribed with referenE to companies manufacturing,
or proposing to manufacture, different approved export
products.
(lc) Every order which declares that a company is
an approved export manufacturer under subsection (1) or
(IA) shall specify the order whereby the relevant approved
export product has been declared as mentioned in that sub-
section.
(2) In every order made under this section a date
shall be declared to be the date on which production is
deemed to begin for the purposes of this Act.
(3) Every order made under subsection ( 1 ) shall
specify the site and the buildings and other structures there-
on constituting the factory in respect of which the benefits
of this Act may be enjoyed.
(4) If, on the application of an approved export
manufacturer, the Minister is satisfied that it is necessary,
for the purpose of promoting the manufacture of the
approved export product by the approved export manufac-
turer, that the site of the factory should be changed or that
the buildings or other structures specified in any order made
under subsection (1) should be altered, added to, extended
or otherwise changed, the Minister may, in his absolute dis-
cretion and upon such conditions as he may think fit, by
order amend any order made under subsection (1) in respect
of the factory specified therein.
(5) On the application of an approved export manu-
facturer the Minister may, in his discretion and upon such
conditions as he thinks fit, amend an order made under this
section in respect of the date of production specified therein;
me inclusion of this page i- authorized by LN. 57119811
EXPORT INDUSTRY ENCOURA GEMENT
and thereupon the provisions of this Act shall, subject to any
conditions specified in relation to such amendment, have effect
as if for the date of production declared pursuant to subsection
(2) there were substituted the date of production amended as a
aforesaid.
7
(6) Without prejudice to the generality of subsection (5),
the amendment of an order pursuant to that subsection may be
made on terms which permit an option exercised in accordance
with section 10 of the Industrial Incentives Act to be changed at
any time before the date of production as amended, or on t e r n
which require that no such change in the exercise of an option
shall be made.
0
5. All applications for the approval of a product as an Awllm-
approved export product or the approval of a company as an spproual
approved export manufacturer shall be addressed to the Minister
in such form and with such particulars as may be prescribed.
[ions for
6.-(1) Before any order is made under subsection (1) of Ob)ec[)ons
section 3, the Minister shall cause the fact that he is about to t o ~ o ~ r a l s
consider whether a product for manufacture should be an aprduct
approved export product for the purposes of this Act, to be
advertised in the Island and, if the Minister so deem if G N
to aFqco*c
necessary. elsewhere. 27330
(2) The advertisement referred to in subsection ( I ) shall
contain such particulars as to the product of which such
approval is being sought as the Minister may think necessary.
'9
( 3 ) The advertisement shall state the period within which
any objection to the approval of the product shall be made.
8 EXPORT INDUSTR Y ENCOURA GEMENT
(4) Every objection received by the Minister within the
time stated in the advertisement or within such extended time as
the Minister may allow shall be considered by the Minister
before any order is made under subsection (1) of section 3.
I im Schcdulc
m o o 1
s z
7. The Minister shall not approve a company as an approved
export manufacturer if such company is an enterprise approved,
recognized or licensed for the purpose of any of the enactments
specified in the First Schedule.
0
8 . 4 1 ) Subject to the provisions of this section and section 7
the Minister shall have an absolute discretion to grant or refuse
to grant approval in respect of a product for rnanufhcture as an
approved export product or a company as an approved export
manufacturer for the purposes ofthis Act.
(2) If a company which is applying for approval as an
approved export manufacturer is, at the time of such application,
manufacturing the approved export product in Jamaica, the
iMinister may, as a condition of his granting the application,
require the applicant to incorporate a company in Jamaica, upon
such terms and conditions as he may determine, and grant
approval in respect of that company when so incorporated.
(3) Upon any application for an order to be made under
section 4, the Minister shall, in the exercise of his discretion in
that behalf-
(a) take account of the Agreement; and
(b) consider whether in his opinion, the periods of relief to
be granted should be less than the periods of relief
prescribed under section 11 and section 13 having
regard to the nature of the project envisaged in the
application and the economic or other circumstances
existing at the time thereof,
[ rhc llllill~#~#l d tl,,, patc ~ i ~ t l i i ~ i ~ r i d by L U I I ? ZOO' I
C
EXPORT INDUSTRY ENCOURAGEMENT
and if h-, makes that order may include therein such terms
as, having regard to paragraph (a) or (b), he may consider
necessary or expedient for all or any of the following, that
is to say-
(i) restricting, abridging, withholding or stipulating L.N.
conditions for, any relief that may (apart from this c;,x,
section or otherwise) be granted by virtue of the 2 i S : S D
order;
(ii) extending any relief, in respect of customs duties,
to any specified class of imports required for use
in the manufacture of the approved export product
in connection with which the order is made;
(iii) subject to subsection (4), authorizing relief to be
afforded indefinitely or for any specified period
(whether or not in excess of any period contem-
plated for concessions under section 11) with re-
gard to income tax on export profits;
(iv) determining export profits for the purposes of any
relief authorized under paragraph (iii);
(v) providing for any matters appearing to the Minister
to be incidental, ancillary or supplementary to, or
consequential upon, any such relief as may be
afforded pursuant to the order.
I49.\ :78
(4) No relief shall by the terms of any order made LN.
under subsection (1) of section 4 be authorized under para- G,N,
graph (iii) of subsection (3) for an approved export manu- z75/8*
facturer during any period for which that manufacturer
is do rded under this Act-
I49A / 78
(a) any relief as to customs duty; or
(6) any relief from income tax in respect of profits
or gains (exclusive of any amount allowable by
way of deduction on computing the chargeable
income of the said manufacturer), other than sums
determinable in accordance with provision made
. . ~ __ . .
me inclusion of this page Ia authorized by L.N. 41 / 19871
9
10 EXPORT INDUSTRY ENCOURAGEMENT
in relation to such manufacturer under paragraph
(iv) of subsection (3).
LN. (4A) All relief, other than such relief as may be
G.N 149A178 authorized under and pursuant to Faragrzphs (iii) and (iv)
27s/s0 of subsection (3), shall be withheld under paragraph (i)
thereof by the terms of any order made under subsection
( 1 ~ ) of section 4, but without prejudice to the inclusion
in any such order of terms pursuant to paragraph (i) or (v)
of subsection (3) with reference to the relief so authorized.
( 5 ) Any terms included pursuant to this section in
any order shall have effect notwithstanding anything to the
contrary provided by or under the Customs Act, the Income
Tax Act, or the Industrial Incentives Act, excluske
of subsection (2) of section 29 thereof (but without prejudice
to the power exercisable under paragraph ( i) of subsection
(3) of this section, to restrict or withhold relief or to abridge
any period of relief), or by or under any other provisions
of this Act.
PART II. Cuncessinns
9. Subject to the provisions of this Act, an approved
export manufacturer shall be entitled to the concessions Conces-
18/1986 specified in section 11.
aions.
s. 4
10. [Repealed by Act 18 of 1986.1
A plication 1 1 . 4 ) The concessions obtainable undcr this section
mstons shall, subject to the provisions of this Act, be those reliefs
gtygf from customs duties and income tax obtainable under the
lnd-trial Industrial Incentives Act; and the provisions of that Act
Incentives
ACt shall apply mutaris murandis and with such modifications as
may be prescribed to an approved export manufacturer to I l / l % S s. 3.
which this section applies as if such approved export manu-
facturer were an approved enterprise to which Part Of the
Industrial Incentives Act applied, the relevant approved ex-
port product were a new product within the meaning of
Part VI of that Act and the factory were the factory premises
within the meaning of that Act.
otcon-
[The inclusion of this page is authorized by L.N. 411198'11
EXPORT INDUSTRY ENCOURAGEMENT 11
(2) The date of production for the purposes of this
Act shall be deemed to be the date of production for the
purposes of the Industrial Incentives Act.
(3) Notwithstanding anything contained in the
Industrial Incentives Act, all approved export manufacturers
to which this section applies shall be entitled to one hundred
per cenrum of the benefits of the Industrial Incentives Act.
(4) The provisions of this section shall have effect LN.
subject to anything to the contrary provided by virtue of G,N, I49Al75
this Act. 27SjSO
12.41) Every factory in which an approved export pro- Production
duct is manufactured shall be under the supervision of the bond: duty
Commissioner and no such factory shall be used for the t:$z;n
manufacture of the approved export product until a bond,
in such sum as may from time to time in each case be I Z / I ~ S S
required by the Commissioner, is given by the approved "'.
export manufacturer with one or more sufficient sureties,
conditioned on due payment of all duties and the due
observance of the provisions of this Act and the customs
laws.
as may be specified by the Commissioner, shall be deemed
to be a private warehouse within the meaning of the customs
laws and, save as modified by this Act or the regulations
made hereunder, the provisions of the customs laws shall
apply ruxordingly.
(3) The goods specified in subsection (4) may be 13/1%0
deposited in such factory or such part or parts thereof as ?i:igss
may be specified by the Commissioner upon first importa- kh.
tion without payment thereon of customs or excise duty or 16/1991
general consumption tax.
(4) Subsection (3) shall apply to the following goods ;3:!."0
imported by an approved export manufacturer for use in the
manufacture or preparation for export or sale of the relevant
approved export product, that is to say-
to be in
(2) Every such factory, or such part or parts thereof IZ/I~SS
s. €4.
[The inclusion of this .page is authorized by L.N. 90/ 19931
12 EXPORT INDUSTRY ENCOURAGEMENT
Addilional
relief from
customs
duly on
plant, tic.
1211985
sch.
1 1 / 1966
s. 3.
5611974
s. 5.
1811986
s. 7(C).
Controlof
facturcr
by C o d
w n m .
12 11985
sab.
W U -
(a) all types of containers including labels;
(b) fuel;
(c) raw materials, chemicals, other ingredients and
supplies whether in a manufactured or semi-
manufactured state and whether intended to form
part of the finished product or not.
13.41) Notwithstanding anything contained in the
Industrial Incentives Act, articles may, during the relevant
statutory period, be imported free of customs duty if the
Commissioner is of opinion that such articles are intended
for the purpose of effecting repairs to a factory within the
meaning of this Act or any extension thereof or to any
apparatus, machinery. tools, appliance or equipment con-
tained in the factory or any extension thereof or for replacing
any apparatus, machinery, tools, appliance or equipment in
the factory or any extension thereof.
(2) For the purposes of this section the relevant
statutory period in relation to the factory of any approved
export manufacturer to which section 11 applies shall be
tlie period commencing on the date on which a~y wmpany
is declared under section 4 to be an approved export manu-
facturer in respect of such factory and terminating ten years
thereafter.
PART In. Miscellaneous
14. In addition to complying with the requirements of
section 16 of the Industrial Incentives Act, an approved
export manufacturer, shall-
(a) upon being required by the Commissioner to
do so, furnish to the Commissioner such informa-
tion as he may require;
(6) import, store or otherwise deal with raw materials
and any other materials or commodities imported
F h c inclusion of this page is authorized by L.N. 90[1993]
EXPORT INDUSTRY ENCOURA GEMENT 13
without payment of customs duty under such
(c) store, export or otherwise deal with the approved
export product under such conditions as the
1211985
Sch conditions as the Commissioner may impose;
1211985
Commissioner may impose. Sch
Remistion
15. No approved export manufacturer shall sell, give away or of
otherwise dispose of any approved export product for use in produnin
Jamaica or in any country belonging to the Caribbean Common ,311w
0
Jamica.
Market: s.4.
5611974
s. 5 .
4DlW
3rd Sch
Provided that nothing in this section shall-
(U ) prevent the sale, gift or other disposition of an
approved export product by one approved export
manufacturer to another approved export
manufactwer, to be used in, wrought into, or attached
to, an approved export product;
such prior to the 30th December, 1974, fiom selling,
giving away or otherwise disposing of an approved
export product for use in any country belonging to the
Caribbean Common Market, other than Jamaica.
(b) prevent any approved export manufacturer approved as 56/1974 s s
0
1 6 . 4 1 ) Every approved export manuhcturer who fhils to pntsn~s
1211985 comply with any requirement of the Commissioner made under sch
section 14 and every director, rnanager, agent, officer and
servant of the company who is knowingly a party to such failure
shall be guilty of an offence and, on summary conviction thereof
before a Resident Magistrate, shall be liable to a fine not
exceeding fifty thousand dollars and, in default of payment 5nw1
thereof, every such director, manager, agent, officer, or servant
shall be !iable to be imprisoned for a term not exceeding twelve
months.
5 3
I rlw 111clu?i011 oflhlr pape I \ n8thwwcrd by L N I 121!002 I
14 EXPORT NDUSTR Y ENCOURA GEMEN T
5j2001
s. 3.
t 2 i I985
Sch.
Schedule.
Regulstions.
1111968
s. 5 .
(2) Every person who shall be knowingly concerned in
contravening the provisions of section 15 shall be guilty of an
offence and on summary conviction thereof before a Resident
Magistrate shall incur a penalty of fifty thousand dollars, or
treble the value of the approved export product sold for use in
Jamaica, at the election of the Commissioner and in default of
payment shall be liable to be imprisoned for any term not
exceeding twelve months. 0
17. On the application of an approved export manufacturer or
in such other circumstances as may be prescribed the Minister
may revoke the order made under section 4 by which a company
became an approved export manufacturer. Upon such revocation
nothing in this Act shall prevent the company from being
granted any special treatment which may he granted pursuant to
any ofthe enactments specified in the Schedule:
Provided that, notwithstanding anything contained in any of
the enactments specified in the Schedule, any special treatment
granted under any of those enactments to a company which has
previously enjoyed concessions under this Act shall be subject
to such terms and conditions as regards adjustment of benefits
received under this Act or otherwise as the Minister may think
fit.
lS.+l) The Minister may make regulations in regard to-
(a) any matters required by this Act to be prescribed;
(b) the particulars to be furnished by an approved export
manufacturer to which section 11 applies;
(c) the terms and conditions under which an approved
export manufacturer may utilize the services of
outworkers, that is to say, persons to whom articles or
materials are given out to be made up, cleaned,
0
0
0
EXI’OR7 LVD USTR Y ENCOURAGEMENT 15
washed. altered, omamented, finished or repaired or
adapted for sale in their own homes or on other
premises not under the control or management of the
person who gave out the articles or materials;
(d) the terms and conditions under which an approved
export manufacturer may sell or otherwise dispose of
genuine wastes arising fiom the manufacturer of the
approved export product;
(e) the imposition of conditions and restrictions on a
company which ceases to be an approved export
manufacturer when an order made under section 4 is
revoked under the provisions ofsection 17;
(0 any matter or thing connected with the construction,
supervision or control of a factory used or intended to
be used for the manufacturer of an approved export
product;
( g ) any other matter or thing, whether similar to the above
or not, in respect of which it may be expedient to
make regulations for the purpose of carrying this Act
into effect.
(2) Any regulation made under subsection (1) may
provide in respect of the breach of any of the provisions thereof
that the offender shall be liable to a fme not exceeding fifty gQ4N‘
thousand dollars, or to such term of imprisonment with hard
labour not exceeding twelve months, or to both such fine and
imprisonment, as may be therein prescribed.
19. Nothing in section 12, 13, 14, 15 or 16 shall have effect ReQriction
ofapplica-
section I?.
13.14.13
or 16
L . 3 .
149An8
C.N.
275180
as regards an approved export manufacturer declared under lionof
subsection (1A) of section 4.
1 / I IC l l lC l l l l i l l l , < , I 11115 ,>.,pc 8 % .IIIIlIIIII,P,I 111 I h I1?.21111? I
16 EXPORT INDUSTRY ENCOURAGEMENT
1ntcrprP
tallon.
5n001
S.6.
SaW”g
G N
1974
20. Any order lawfully made or anything lawfully done by
virtue ofthis Act prior to the 1st day of July, 1976, and which.
but for the *amendments made to this Act with effect kom the
said day under section 6 of the Industrial Incentives (Regional
Harmonization) Act, 1974, would continue to have effect after
the 30th day of June 1976, shall so continue to have effect and
shall be treated as having been made or done under this Act as
so amended.
PART IV. Supply of Services
L N
149M78
275180
(Acr 56 01
5 6
Omrlled)
0
21 .+l) In this Part, unless the context otherwise requires-
“approved export service” when not preceded by the word
“relevant” means service of a type which pursuant to
this Part may, on approval by the Minister, be
fbmished by an approved export service provider with
the concessions permitted by this Part;
“approved export service provider” or “service provider”
means a company approved by the Minister under
section 24 for the purposes of this Part;
‘‘benefit” means the relief in regard to income tax or
customs duties enjoyed by a service provider by virtue
of this Part;
“export profits” means profits of a service provider directly
attributable to the furnishing of an approved export
service to clients in a territory other than a country
belonging to the Caribbean Common Market;
“headquarters” used in relation to a service provider means
one or more locations in Jamaica specified by the
service provider as the base f?om which it furnishes
approved export services;
“relevant approved export service” used in relation to any
service provider, means the approved export service in
relation to which the service provider has been
declared under section 23 to be a service provider;
“starting date” means the date declared pursuant to section
23(2).
0
Y B Vrde L N 1 4 9 M 8 , C N 275i7.0
0
EXPORT INDUSTRY ENCOURAGEMENT 17
(2) No provision made by or pursuant to this Part shall
be construed as requiring the Minister to be satisfied that a
company proposing to M s h approved export service needs to
do so exclusively for export.
2 2 . 4 1 ) Subject to subsection (2), the Second Schedule lists CakwjeS
of expipor( in general terms the categories of services which may be SerYiCeS.
SROOI
S.6.
approved for the purpose of this Part.
(2) The Minister my- Second
Schedule
(a) by order amend the Second Schedule; and
(b) in granting any approval pursuant to section 23,
modify the description of the category of service in
such manner and in such detail as he thinks
appropriate.
2 3 . 4 1 ) The Minister may, by order, declare that an Dec'sm'kon
of appoved
approved export company which is providing or proposing to export
provide approved export services is an approved export service ;:,%
provider for the purposes of this Act if he is satisfied that the 5i2001
company-
(U) has adequate trained personnel in its employ or is able
to obtain the services of such personnel;
(b) has access to the necessary technical information and
facilities to provide the service;
(c) is adequately financed; and
(4 whether or not it provides the service to clients in
Jamaica, proposes to offer that service to clients in
countries other than those belonging to the Caribbean
Common Market.
S 6
(2) Subject to subsection (5), in every order made under
subsection (1) a date shall be declared to be the date on which,
consequent on representations made by or on behalf of the
applicant, the supply of the approved export services shall be
deemed to begin for the purposes of this Part.
[Tlx IIILIUIIOO o i this p x r IS a d n 8 z e d h. L h I 12 2W2 1
18 EXPORT IND USTR Y ENCOURA GE.t4EhrI
( 3 ) Every order made under subsection (1) shall specify
the site and the buildings and other structures thereon which
shall constitute the headquarters and, where relevant, ancillary
facilities in Jamaica in relation to which the benefits of this Part
may be enjoyed.
(4) If, on the application of the service provider, the
Minister is satisfied that it is necessary, for the purpose of
promoting the relevant approved export service, that-
(a) the site of the headquarters of the service provider
should be changed; or
(6) buildings and other structures specified in any order
made pursuant to this section should be altered, added
to, extended or otherwise changed,
the Minister may, upon such conditions as he thinks fit, amend
the order in respect of the headquarters and, where relevant,
ancillary facilities specified therein.
(5) On the application of an approved export service
provider the Minister may, upon such conditions as he thinks fit.
amend an order made under this section in respect of the starting
date specified therein.
(6 ) Where an order is amended pursuant to subsection
(9, the provisions of this Part shall, subject to any conditions
specified in relation to such amendment, have effect as if for
the starting date declared pursuant to subsection (2) there were
substituted the starting date amended as aforesaid.
24.+1) An application for the approval of a company as an
approved export service provider shall be addressed to the
Minister in such form and with such particulars as may be
prescribed.
(2) The Minister shall not approve a company as an
approved export service provider if that company is an
enterprise approved, recognized or licensed for the purpose of
any of the enactments specified in the First Schedule.
I I/,< ,KC,U>,\>,, ,I: 1111Y ]'.IS' I. ;Il,ll,i.rir:,l I>\ I U I ? 3 ! , > 2 I
,&~ica~ion
for
approval.
512001
S 6
0
0
EXPORT INDUSTRY ENCOURAGEhENT 19
0
0
25.+1) If a company which is applying for approval as an ~ a r r e r r
ancillary to approved export service provider is at the time of the dec,ara,jon
application, providing that service, the Minister may, as a ofservice
condition of his granting the application, require the applicant to 5RW,
incorporate a company in Jamaica upon such terms and s . 6 .
conditions as he may determine, and pant approval of that
company when so incorporated.
(2) Upon receipt of an application for an order to be
made under section 23, the Minister shall, in the exercise of his
discretion in that behalf-
povida
(a) take account of the Agreement; and
(b) consider whether, in his opinion, the periods of relief
to be granted should be less or more than the periods
of relief prescribed under sections 27 and 28, having
regard to the nature of the project envisaged in the
application and the economic or other circumstances
existing at the time thereof
( 3 ) The Minister may include in the order under section
23, such terms as, having regard to paragraph (a) or (b ) of
subsection (2), he may consider necessary or expedient for all or
any of the following, that is to say-
(a) restricting, abridging, withholding or stipulating
conditions for, any relief that may (apart from this
section or otherwise) be granted by virtue of the order;
(b ) extending any relief, in respect of customs duties or
any general consumption tax, to any specified class of
imports required for use in providing the relevant
approved export service;
(c) subject to subsection (4), authorizing relief to be
afforded indef~te ly or for any specified period
(whether or not in excess of any period contemplated
for concessions under section 27) with regard to
income^ tax on export profits;
(4 determining export profits for the purposes of any
relief under paragraph (c);
20 EXPORT INDUSTRY ENCOURAGEMENT
( e ) providing for any matters appearing to the Minister to
be incidental, ancillary or supplementary to, or
consequential upon, any such relief as may be afforded
pursuant to the order.
(4) No relief shall, by the terms of any order made under
section 23, be authorized under subsection ( 3 ) (c) of this section
for a service provider during any period for which that provider
is afforded under this Act-
(a) any relief as to customs duty or general consumption
tax;
(b) any relief fkom income tax in respect of profits or
gains (exclusive of any amount allowable by way of
deduction on computing the chargeable income of the
service provider), other than sums determinable in
accordance with provisions made in relation to such
service provider under paragraph (d) of subsection
(3).
(5) Any terms including pursuant to this section in any
order shall have effect notwithstanding anything to the contrary
provided by or under-
(a) the Customs Act;
(h) the General Consumption Tax Act;
(c) the Income Tax Act;
(d) the Industrial Incentives Act (other than section 29 (2)
thereof); or
(e) subject to subsection (6), any other provisions of this
Act.
0
(6) Subsection (5) shall have effect without prejudice to
the power of the Minister pursuant to this Act to restrict or
withhold relief or to abridge any period of relief.
Concessions
26. Subject to the provisions of this Part, an approved export
service provider shall be entitled to the concessions specified in
sections 27 and 28.
0
conces-
sions
S 6
512001
EXPORT IND USTRY ENCOUM GEMEW 21
27.+1) An approved export service provider shall, subject ~ n w m c h ~
to the provisions of subsection (2), be cntitlcd to the following ,Cla+,O,ltO
( ( I ) relief in respect of profits or gains earned from the
furnishing of the relevant approved export service, for scww
a period of ten years fiorn the starting date. applicable
to that service provider;
(b) where relevant annual allowances may be made with
respect to any period prior to the commencement of
the period of ten years referred to in paragraph (a).
those annual allowances may be made in respect of
that prior period;
( c ) annual allowances shall be made during that period of
ten years but a notional depreciation of assets shall be
made at the approved rates within the meaning of the
Income Tax Act;
Icllcf I"
furnirhing
dappmvcd
relief fiom income tax, that to say-
512001
(4 after the expiration of the period of ten year-
(i) annual allowances may be made upon the
original cost of the assets less the notional
depreciation for which provision is made in
paragraph (c); and
the service provider may, for the purpose of
assessment of income tax, carry forward in
respect of the next succeeding six years of
assessment, losses incurred during the period
of ten years aforesaid which have not been
written off.
(2) An approved service provider may, at any time
during the period of ten years referred to in subsection (1):
surrender the right to benefit in regard to income tax and elect to
be assessed for income tax thereafter under the Income Tax Act.
2 8 . 4 1 ) An approved export service provider shall be CUmmE
entitled, upon production of the prescribed documents to the 2::cyd
proper Customs Oficer, to import into the lsland any of the consump-
articles specified in the Thud Schedule with such relief fiom
customs duty and general consumption tax as may be 5 . 6 .
(ii)
Re,icfhom
Third
prescribed. Schedule.
0
0
EXPORT INDUSTRY ENCOURA GEMENT
Supcniaion
re d"l!
bee ,"I-
portation.
512001
S. 6
(2) Subject to the provisions of section 29, where
articles have been imported into the Island pursuant to this
heclion such articles shall not be sold. exchanged. given away.
export-d i?om the Island or applied for any purpose other than
use in connection with the approved export service.
( 3 ) Every person who contravenes subsection (2) shall
be guilty of an offence and shall be liable on summary
comiction before a Resident Magistrate to a h e not exceeding
five hundred thousand dollars or to imprisonment for a term not
exceeding twelve months or to both such tine and
imprisonment.
0
29.+1) Where the Minister is satisfied that any articles
which have been imported into the Island under section 28 are
no longer required for the purpose for which they were imported
he may grant a permit to the service provider to dispose of such
articles in such manner as the Minister may specify.
(2) No permit shall be granted under subsection (1) until
the service provider has paid to the Commissioner of Customs
or has given security to that Commissioner as assurance that it
will so pay all sums which but for exemption given in section
28. would, have been payable by way of customs duties and
general consumption tax upon the importation of those articles.
3 0 . 4 1 ) Every headquarters in which an approved service
provider carries on an approved export service shall be under the
supervision of the Commission and no such headquarters shall
be used for the purposes bf the approved export service until a
bond, in such sum as may fiom time to time in each case be
required by the Commissioner, is given by a reputable financial
institution with one or more sufficient sureties, conditioned on
due payment of all duties and tax and the due observance of the
provisions of this Act and the customs laws.
0
EXPORT INDUSTRY ENCO URAGEMEXT 2 3
(2) Every such headquarters, or such part or parts
thereof as may be specified by the Commissioner. shall k
deemed to be a private warehouse within the meaning of the
customs laws and, save as modified by this Act or the
regulations made hereunder, the provisions of the customs laws
shall apply accordingly.
(3) The goods prescribed pursuant to subsection (4) may
be deposited in such headquarters or such part or parts thereof as
may be specified by the Commissioner uuon frst importation
without payment thereon ofcustom, or excise duty or general
consumption tax.
(4) Subsection (3) shall apply to such goods as may be
prescribed which are imported by a service provider for use in
the provision ofthe relevant approved export service.
31.+1) Articles may, during the relevant statutory period, A~il iunal
bc imported by a service provider kee of customs duty and rcllsffrom
general consumption tax if the Commissioner is o f the opinion dui? and
that such articles are intended for the purpose of-
CUStOIllS
gnl ~ l ~ ; s , p ~ c ~ ~ ~ ~ ~ t l n ~ i m l l ~ ~ L N I12:?001 I
FXPORT INDUSTRY EN(~(1iJRAGEWM
FIRST SCILCDL-LE (Sections 7 and 24) ?zool
sch.
Thc Hotels (Incenti\-es) Act.
The MQ!ion Plclwe l n h s m (Encouragement) Act.
The Industrial Incentives Act.
SECONI) SCHEDULE (Section 22) 5:2001
SA Iksipmted Services fur Purposes o(Part I[.'
1. hfrastructural services. i . e ._ which constitute the basic infrastructure on
These include:
which other services are developed and traded.
(a)
(b)
(c)
The transport services-both air and marine:
Transport maintenance services such as drydoclang and aircraft
maintenance:
Communication includmg telcrnatics or satellitc or other forms
of lugh speed transmission such as computer. radio or television:
(CO Information processing including data entE software
programming telemarkcting reservation services. credit verifica-
t ion archtectural design, computer aided design. desk-top
publishing and type-setting.
2. Financial services. including banking, insurance. re-inswince.
3. Tcchmcal and prolcssional services. including-
accountancy. leasing and brokerage.
(a) quality control:
(c) engineering architectural design:
(d) consultancy services:
(ej mamgcment services;
v) advisory senices:
(9) international marketing.
(h) legal sen-ices:
(i) medical services. including geriatnc and hospice services:
0) printing and publishuig:
(k) educational services;
(f) public relations;
(m) advertising services:
(n) gradpluc design; and
( 0 ) cultural services.
(b) MnSINdOnl
( ' 1 1 1 ~ ~mcIui ioi i 01 1 1 ~ 1 ~ ; ~ q c i c ~ ~ ~ t I ~ n r i z c d by 1..X 11?:2\102 I
0
EXPORT NDUSTR Y ENCOURA GEMENT 25
THIRD SCHEDULE (Section 28) 5n"fl'
SLh
All building materials, tools, plant, machinery, pipes, pumps, conveyor
belts or other appliances or materials necessary for and used in construction,
alteration and extension of the headquarters spefified in an order made under
section 23 or for equipping such headquarters or any extension thereof used
or intended to be used for the h i s h i n g of the auproved export service by
the service provider.
0
