EXPORT PROCESSING ZONES: SUBSIDIARY LEGISLATION
EXPORT PROCESSING ZONES: SUBSIDIARY LEGISLATION EXPORT PROCESSING ZONES REGULATIONS ARRANGEMENT OF REGULATION REGULATION PART IPRELIMINARY 1. Citation 2. The Export Processing Zones Appraisal Committee 3. Application for Export Processing Zones Certificate 4. Issue of the Proessing Zone Certificate 5. Calculation of time PART IIEXPORT PROCESSING ZONES ACTIVITIES 6. Failure to commence 7. Monitoring of export enterprises 8. Local sales by an export enterprise 9. Accounting records PART IIIRENEWAL, AMENDMENT, SUSPENSION AND REVOCATION OF EXPORT PROCESSING ZONES CERTIFICATES 10. Renewal and amendment 11. Refusal to renew, amend suspend or revoke certificate PART IVMISCELLANEOUS 12. Notice of hearing 13. Power to order particulars 14. Admission to a hearing 15. Appearance at hearing 16. Procedure at hearing 17. Imposition of a penalty 18. Offences and penalties 19. Fees FIRST SCHEDULE SECOND SCHEDULE G.N. 82/2020 EXPORT PROCESSING ZONES REGULATIONS under s. 21 PART IPRELIMINARY 1. Citation These Regulations may be cited as the Export Processing Zones Regulations. 2. The Export Processing Zones Appraisal Committee (1) Where under the Act or these Regulations a decision of the Committee is required, six members shall form a quorum for any purpose. (2) Any communication from the Committee shall be under the hand of the Chairperson of the Export Processing Zones Committee, hereinafter referred to as the “Chairperson”. 3. Application for Export Processing Zones Certificate (1) A company duly registered under the laws of Malawi may, on payment of the prescribed fee, apply for an Export Processing Zone Certificate using Form EPZ 1 in the First Schedule hereto. (2) An application under subregulation (1) shall be accompanied by— (a) evidence of the payment of the prescribed application fee; (b) a Certificate of Incorporation or Registration; (c) a business plan; (d) proof of title to the land on which the export enterprise shall carry out the business such as a deed, lease or such other document; (e) five year financial and production projections; and (f) an Environmental Impact Assessment report, where applicable. 4. Issue of the Proessing Zone Certificate (1) The Minister shall, on the recommendation of the Committee, accept or reject an application for an Export Processing Zone Certificate. (2) The Committee in making any recommendation to the Minister shall give priority to promoting the export of non-traditional value added products in compliance with the National Export Strategy and consistent with the Act. (3) Where the Minister approves the application of an export enterprise, he shall issue an Export Processing Zone Certificate to the enterprise in the format contained in Form EPZ 2 in the First Schedule. (4) Where the Committee recommends to the Minister to reject an application, the Committee shall furnish the Minister with reasons for the recommendation of the rejection in writing. (5) An export enterprise that contravenes any condition stipulated in its certificate commits an offence and shall be liable to pay a penalty of five per cent of the annual turnover: Provided that the penalty shall not exceed K20,000,000. 5. Calculation of time For the purposes of calculating the time within which anything needs to be done under the Act by the Minister, such time shall start running from the date of receipt by the Chairperson of the relevant application. PART IIEXPORT PROCESSING ZONES ACTIVITIES 6. Failure to commence (1) The Minister shall revoke a certificate of an export enterprise, where the export enterprise fails to commence its operations within twelve months or during such an extension as the Minister, on the recommendation of the Committee, may grant. (2) The Minister, before revoking a certificate of an enterprise under subregulation (1) shall give the enterprise an opportunity to be heard in accordance with regulations 11 to 15. 7. Monitoring of export enterprises (1) An export enterprise shall prepare and submit a report to the Committee, on a quarterly basis, within thirty days after the end of each quarter, specifying— (a) total production and turnover; (b) total exports, including evidence thereof such as any CD 1 Form under the Customs and Excise Act; (c) evidence of exports proceeds certified by an authorized dealer bank under the Exchange Control Act; (d) evidence of any sales made locally not exceeding twenty per cent of total production; and (e) evidence of any taxes payable on equivalent goods produced for local sale. (2) Where the export enterprise fails to submit any information in compliance with subregulation (1), the export enterprise shall submit an explanation to the Committee giving reasons for the failure. (3) An export enterprise which fails to comply with subregulations (1) and (2) commits an offence and shall be liable to a penalty of three per cent of its annual turnover: Provided that the penalty shall not exceed K20,000,000. 8. Local sales by an export enterprise (1) An export enterprise may sale any part of its production within Malawi if the sales shall not, in aggregate,…