Enforcement of penalties

(1) The Ministry shall investigate any alleged violation by an EPZ business of any requirement under the EPZ Act or regulations made thereunder, or of any lawful order of the Ministry or the EPZ Developer. Where the Ministry finds that a violation has occurred it shall impose a fine of $500.00 for a first offence, and $1,000.00 for a second offence. All such fines shall be paid into the Consolidated Revenue Fund. If the Ministry finds that a pattern of such continuing violations has occurred and that the alleged violator will not comply with applicable requirements in the future, it may after proper notice and hearing revoke the Certificate of Compliance and the business will then cease to be eligible for any of the benefits under the EPZ Act. The violator shall have the right of appeal in accordance with section 16(4) of the Act. (2) The Ministry shall monitor whether foreign nationals holding work and residence permits continue to satisfy all requirements and conditions of such permits. (3) If the Ministry finds that any of the requirements or conditions of the permits are not satisfied, it may recommend to the Ministry of Labour to revoke such permits and such foreign nationals shall then cease to work in the EPZ. The violator shall have the right of appeal in accordance with section 16(4) of the Act. (4) The Ministry shall investigate any alleged violations by EPZ Developers or any requirements under the EPZ Act or the regulations made thereunder. Where the Ministry finds the violation proved, it shall levy a fine of $500.00 per day for each violation. All such fines shall be paid into the Consolidated Revenue Fund. (5) The Ministry shall revoke a Company’s Certificate of Compliance where– (a) a company disregards the provisions of the EPZ Act with respect to the use and destination of machinery, vehicles, raw 12 Export Processing Zone materials, semi-manufactured products and other articles purchased under the EPZ regime; (b) a company, through its own fault, fails to initiate operations within two years from the date of its Certificate of Compliance; (c) the Ministry receives an express request from the company for revocation. (6) Notification of revocation of EPZ status will be made to the company concerned, which may appeal such revocation in accordance with section 14(d) of the Act. (7) Any party desiring to appeal under section 16(4) of the Act shall file a notice to that effect with the Ministry within seven (7) days of the notification of the decision. MADE by the Minister of Trade and Commerce this 30th day of April, 1992. (GEORGE PRICE) Minister of Trade and Commerce __________ Export Processing Zone 13 SCHEDULE I [regulation 2] General Information For Processing of EPZ Designation Belize 1. Submit a project including(I) physical master plan showing overall layout (II) proposed construction schedule (III) capital cost estimate (IV) staff and management organization (V) five (5) year financial projections, including leasing or sale arrangements plan. 2. Provide copies of the company’s(I) Memorandum (II) Articles of Association (III) Certificate of Incorporation 3. Provide two bank references on the firm and its main partners. 4. Provide one commercial reference on the firm and its main partners. 5. Complete the enclosed application form. 6. Provide any other information which the Export Processing Zone Committee may require. 7. Enclose the required application fee of $1,000.00 BZ. 14 Export Processing Zone APPLICATION FOR EPZ DESIGNATION 1. Company Profile– (a) Name of EPZ Company .................................. (b) Telephone ....................................................... (c) Telex and Cable .............................................. (d) Facsimile ......................................................... (e) Mailing Address .............................................. ............................................. ............................................. ............................................. (f) General Manager ............................................. (g) Legal Representative ....................................... (h) EPZ Classification ........................................– (i) General ............................................... (ii) Special ................................................ 2. Location: ................................................... Corozal ................................................... Orange Walk ................................................... Belize Export Processing Zone 15 ................................................... Cayo ................................................... Stann Creek ................................................... Toledo 3. ProductionCurrent activities and business operations being conducted by applicant for special EPZ designation: ................................................... Manufacturing ................................................... Agri-processing ................................................... Trading ................................................... Services ................................................... Other Date ………………… Signature ……………………… Title …………………………… __________ 16 Export Processing Zone SCHEDULE II [regulation 3(5)] Ministry of Trade and Commerce Certificate of Designation The parcel of land described as ................................................... .................................................................................................... .................................................................................................... is hereby designated a ................................................... Export Processing Zone under section 4 of the Belize Export Processing Act Chapter 280. DATED THIS ……… DAY OF …………………….. 2……… ……………………………….. Chairman Export Processing Zone Committee __________ Export Processing Zone 17 SCHEDULE III [regulation 4] General Information For Processing of EPZ Business Status Belize 1. Provide Company’s– (a) Memorandum (b) Articles of Association (c) Certificate of Incorporation 2. Complete the attached application form. 3. Provide a five (5) year financial projection of investment in the Zone. 4. Provide any other information as the Ministry of Trade and Commerce may require. 5. Labour Force– (a) Personnel necessary to initiate operations Men Women Total Professional ................................................................................. Technical ..................................................................................... Other ........................................................................................... 18 Export Processing Zone Foreign National Total Professional ................................................................................. Technical ..................................................................................... Other ........................................................................................... (b) Necessary personnel at Maximum capacity Men Women Total Professional ................................................................................. Technical ..................................................................................... Other ........................................................................................... Foreign National Total Professional ................................................................................. Technical ..................................................................................... Other ........................................................................................... 6. Production– (a) Expected Commencement Date of Operations ……………………………………………………………. (b) Expected Date of Maximum Operations ……………………………………………………………. 7. Physical Plant in square feet……………………………. 8. Requiring Services– (a) Electricity Beginning Maximum Load ………………………………. Voltage ………………………………. Monthly Consumption………………………... Export Processing Zone 19 (b) Water Potable: Avg. daily Consumption ………………………….. Reqd. volume/1t/sec………………………………. Industrial: Avg. Daily Consumption………………………….. Reqd. volume 1t/sec………………………………. (c) Telecommunications: ……………………………………………… ……………………………………………… ……………………………………………… ……………………………………………… Date:…………………… Signature: …………………… Title: ………………………….. 20 Export Processing Zone CHART 1 INVESTMENT DESCRIPTION DESCRIPTION YEAR 1 YEAR 2 YEAR 3 AMOUNT COUNTRY AMOUNT (U.S. $) COUNTRY AMOUNT (U.S. $) ORIGIN ORIGIN (U.S. $) MACHINERY AND EQUIPMENT TOTAL 1/ PLEASE GIVE FULL DETAILS OF EACH PRODUCT IN ORDER TO ASSESS POTENTIAL TAX EXEMPTIONS Export Processing Zone 21 EXPORT DESCRIPTION YEAR 1 YEAR 2 YEAR 3 Volume (KLG) Value (US$) Volume (KLG) Value (US$) Volume (KLG) Value (US$) TOTAL 1/ 1/ PLEASE GIVE FULL DETAILS OF EACH PRODUCT IN ORDER TO ASSESS POTENTIAL TAX EXEMPTIONS 22 Export Processing Zone CHART 3 DETAILS OF RAW MATERIALS AND PACKAGING BOUGHT OUTSIDE BELIZE DESCRIPTION YEAR 1 YEAR 2 YEAR 3 Volume (KLG) Value (US $) Volume (KLG) Value (US $) Volume (KLG) Value (US $) RAW MATERIALS AND PACKAGING 1/ TOTAL 1/ PLEASE GIVE FULL DETAILS OF EACH PRODUCT IN ORDER TO ASSESS POTENTIAL TAX EXEMPTIONS Export Processing Zone 23 DETAILS OF RAW MATERIALS AND PACKAGING BOUGHT IN BELIZE DESCRIPTION YEAR 1 YEAR 2 YEAR 3 Volume (KLG) Value (US $) Volume (KLG) Value (US $) Volume (KLG) Value (US $) MATERIALS PACKAGING 1/ TOTAL 1/ PLEASE GIVE FULL DETAILS OF EACH PRODUCT IN ORDER TO ASSESS POTENTIAL TAX EXEMPTIONS 24 Export Processing Zone CHART 4 DETAILS OF OFFICE EQUIPMENT AND VEHICLE DETAILS YEAR 1 (US $) YEAR 2 (US $) YEAR 3 (US $) OFFICE EQUIPMENT 1/ VEHICLE TOTAL 1/ PLEASE GIVE FULL DETAILS OF EACH PRODUCT IN ORDER TO ASSESS POTENTIAL TAX EXEMPTIONS Export Processing Zone 25 SCHEDULE IV [regulation 5] Operations Contract We, ………………….., in the Ministry of Trade and Commerce (Name) AND, ………………………… the General Manager/President (Name) of the ………………………………………….. have come (Company Name) together to formalize the following Operations contract as required by Regulation 5(2) of the EPZ Regulations. ……………………………………………………. will confine (Company Name) operations to the production/processing of …………………… or other activity of a similar nature under the classification “EPZ business”, under section ………………. of the EPZ Act. To widen the scope of this activity, the ………………………. (Company Name) is required to apply to the Ministry of Trade & Commerce for authorization. Second …………………………………………….. shall make annual (Company Name) payments to the Ministry of Trade and Commerce for use of the EPZ Regime, under Regulation 4(3) of the EPZ Regulations. 26 Export Processing Zone Third For the purpose of these payments, industrial roof is considered to be space dedicated to the factory, administrative offices, corridors, and other areas which may be designated by the Ministry. Fourth …………………………………….. shall meet the cost of any (Company Name) Environmental Impact analysis that may be required. Fifth ……………………………………….. is expected to fulfill all (Company Name) obligations under the EPZ Act, the Regulations, and the Operations Contract. Sixth ……………………………….. is expected to present bi-annual (Company Name) reports on its activities to the Ministry no later than 30 days following the six-month periods. Seventh ……………………………………… will facilitate the customs (Company Name) authorities with documentation for financial and customs control. Export Processing Zone 27 Eighth …………………………… shall carry a permanent inventory (Company Name) of all stored goods that will allow for non-expectant checks. At the same time, a system should be implemented to allow for efficient control over goods that enter, remain, and leave the Company in question. ………………………….. shall keep the Ministry informed of (Company Name) changes and modifications that affect the original agreements reached with the Ministry such as a reduction in the labour force, temporary interruption of operations, expansion of industrial roof, change of activities, changes of its management, administrative and legal representation, and others. The Ministry may periodically request reports that it considers timely from a Company’s management or Departments to verify compliance of obligations or to establish control mechanisms to carry out its financial checks. …………………………………….. is expected to provide any (Company Name) information solicited by the Ministry at any time. Failure to comply will allow the Ministry to delay further processes in favour of the company. Eleventh Should the company decide to request a revocation of the EPZ Regime, it should communicate this to the Ministry at least one month in advance. 28 Export Processing Zone Twelfth Should the Company discontinue operations for more than two years it will be deemed as having abandoned the EPZ Regime, thereby authorizing the Ministry to proceed with revocation of the Certificate of Compliance. Having read this document, and as an indication of our conformity, we the undersigned affix our signatures this ………. day of …………………, 2………, in Belize, Central America. ………………………………. ………………………………. Ministry of Trade & Commerce Representative of the EPZ Firm __________