Family Islands Economic Enterprise Zones Act


Published: 2003-07-01

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Family Islands Economic Enterprise Zones Act
FAMILY ISLANDS ECONOMIC ENTERPRISE ZONES [IV – 375


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FAMILY ISLANDS ECONOMIC ENTERPRISE ZONES
Act No. 14 of 2003

FAMILY ISLANDS ECONOMIC ENTERPRISE
ZONES

ARRANGEMENT OF SECTIONS

SECTION

1. Short title.
2. Interpretation.
3. Exemption from stamp duty and customs duty.
4. Penalty for false declaration.
5. Shipment of supplies.
6. Termination of duty.
7. Penalty for wrongful application of supplies.
8. Regulations.



An Act to encourage the establishment of economic
enterprise zones in designated family islands by

granting certain exemptions and fiscal incentives to
persons engaging in such enterprises.

[Assent 1st July, 2003]
[Commencement 1st July, 2003]

1. This Act may be cited as the Family Islands
Economic Enterprise Zones Act.

2. In this Act —
“capital investment” or “investment” means —

(a) the construction of buildings for residential
or commercial use for which the relevant
building permits have been issued;

(b) the construction of buildings to be used for
agriculture, fisheries or farming ventures
registered with the Ministry responsible for
Agriculture and Fisheries;

(c) the construction of floating docks and
marinas approved by the Port Department,

but does not include any household furniture or
any article or thing imported for sale or for the
personal use of any person or made available
after its importation for the personal use either
by sale or gift or otherwise of any person,

14 of 2003

Short title.

Interpretation.

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STATUTE LAW OF THE BAHAMAS LRO 1/2006

whether such person be employed or resident
within the zone or not;

“Minister” means the Minister responsible for
Finance;

“supplies” means all materials and things of every
kind and description including all equipment,
building materials, factory plant and apparatus
replacement parts, spare parts, machine and
hand tools, contractors plant, heavy equipment
necessary for carrying on a capital investment
under this Act;

“zone” means any Family Island or part thereof and
any approved investment project in any Family
Island or part thereof specified by the
Governor-General by order published in the
Gazette.

3. (1) Notwithstanding anything to the contrary in
the Tariff Act, and the Stamp Act any person who is
desirous of making a capital investment in any of the zones
specified by order may apply to the Minister for an
exemption from customs duties or stamp duties in respect
of supplies imported in those zones as part of the capital
investment.

(2) An application under subsection (1) shall be
made in the form prescribed in the Schedule and the
applicant shall furnish the Minister with the following
information —

(a) particulars as to the name, nationality, age and
marital status of the investor or if a company the
date and place of incorporation and the names of
the directors, officers and beneficial owners of
the company;

(b) an environmental impact assessment study,
where necessary;

(c) the estimated amount and source of funding;
(d) the purpose of the investment;
(e) the manner in, and the period within which the

investment would be made;
(f) particulars as to the nature of the development

works to be carried out and the estimated
contribution which it is expected to make to the
economy of that Family Island;

Exemption from
stamp duty and
customs duty.

Ch. 295.

Ch. 370.

Schedule.

FAMILY ISLANDS ECONOMIC ENTERPRISE ZONES [IV – 377




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(g) the estimated minimum amount and utilisation
of the capital to be expended annually thereon
during the period specified in subsection (3);

(h) where applicable, copies of the relevant work
permits, business licence, the number of persons
to be employed, the source of recruitment and
the conditions under which workers will be
employed, including the nature and extent of the
provisions for the housing of workers if
necessary;

(i) the date, on or before which —
(i) the construction, expansion or preparation

as the case may be, of the development
works will commence;

(ii) satisfactory evidence that the investment is
adequately financed and the arrangements
for the management of the zone.

(3) The exemption mentioned in subsection (1) may
be granted for a period not exceeding three years from the
date of the commencement of this Act and ending on the
1st day of July 2006.4

(4) Notwithstanding subsection (3), the Minister
may by order extend the period specified in subsection (3)
for such further period not exceeding one year as appears
necessary for the economic development of The Bahamas.

4. Every person knowingly making a false
declaration for the purpose of obtaining a benefit pursuant
to the provisions of this Act commits an offence and is
liable on summary conviction to a fine equal to twice the
amount of an exemption granted or ten thousand dollars
whichever is greater or to imprisonment for one year.

5. (1) No person who has obtained an exemption
under this Act shall ship any supplies exempted under this
Act to any Family Island not specified in any order made
by the Governor-General.

(2) Every person who contravenes subsection (1)
commits an offence and is liable on summary conviction to
a fine of ten thousand dollars or to a penalty not exceeding
twice the value of the goods in respect of which the offence
was committed and such supplies may be seized and
proceeded against in the same manner as goods liable to
forfeiture under the Customs Management Act.

4 By S.I. 35/2006 this period was extended to 30th June, 2007.

Penalty for false
declaration.

Shipment of
supplies.

Ch. 293.

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6. (1) At the end of an exemption period granted

under section 3, any supplies in the possession of a seller
of supplies that have been imported duty free shall become
subject to duty.

(2) Every seller of supplies who contravenes the
provisions of this section by continuing to supply
exempted goods after such period commits an offence and
is liable on summary conviction to a fine of five thousand
dollars, or to imprisonment for one year, or to both such
fine and imprisonment.

7. Any person applying any supplies obtained
pursuant to the provisions of this Act for a purpose other
than for the purpose specified in this Act commits an
offence and is liable on summary conviction to a fine of
five thousand dollars or to imprisonment for one year, or to
both such fine and imprisonment.

8. The Minister may make regulations for carrying
out the purposes of this Act.



SCHEDULE (section 3(2))

Application for Exemption from Customs Duties/Stamp Duties
Under The Family Islands Economic Enterprise Zones Act

1. Name of Applicant: _______________________________________

Address/Registered Office: _________________________________

Street: __________________________________________________

P.O. Box: _______________________________________________

Telephone: ______________________________________________

Facsimile: _______________________________________________

E-mail: _________________________________________________

2. Description/Nature of Development: _________________________

3. Purpose of Investment: ____________________________________

Termination of
duty.

Penalty for
wrongful
application of
supplies.

Regulations.

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4. Source of Funding: ________________________________________

5. Date of Commencement: ___________________________________

6. Date of Completion: _______________________________________

7. Name of Zone: ___________________________________________

Location of Project: _______________________________________

Settlement: ______________________________________________

8. Particulars of employees (source of recruitment, work permit, housing
etc.):

________________________________________________________

________________________________________________________

9. Supplies being imported:

Quantity Description Value

























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Signature of Applicant ___________________________________________

Verification ____________________________________________________
Administrator

Entry No. __________________ Date __________________________

Approved _____________________________________________________
(for) Comptroller of Customs

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