Section 10

Fees. SCHEDULE I SCHEDULE II SCHEDULE III Export Processing Zone 33 CHAPTER 280 DESIGNATED PROCESSING AREAS REGULATIONS S.I. 71 of 2019. S.I. 144 of 2020. (section 31) [2nd November, 2019] PART I Preliminary Provisions 1. These Regulations may be cited as the Citation. DESIGNATED PROCESSING AREAS REGULATIONS. 2.-(1) Words and expressions used in these Regulations shall have the meanings respectively assigned to them in the Act. Interpretation. (2) In these Regulations“Industrial roof space” means space dedicated to the factory, administrative offices, garages, platforms, sheds, containers, corridors, and other areas of an approved company; and “intimately related to the approved activities” means, goods that are deemed by the DPAC to be necessary to produce an approved activity. 34 Export Processing Zone PART II Classification and Approval 3. The Minister may by Order, declare a sector to be a national priority sector, in accordance with a national plan or any other plan or policy of the Government, as listed in Schedule I. Approved activities. Schedule I. 4.-(1) The functions and powers of the Secretariat shall include the following, toFunctions and powers of DPAC Secretariat. (a) perform the functions of secretary to the DPAC; (b) process applications and make recommendations to the DPAC for the issue of a DPA status; (c) conduct investigations, including site visits to DPAs when processing applications, in order to determine whether to recommend to the DPAC that an application be approved or refused; (d) inspect the records of an approved company and monitor the DPAs for adherence with the requirements of the DPA status under the Act; (e) collect and maintain data on the performance of the programme in an individual DPA; (f) make recommendations to the DPAC for the variation, suspension or revocation of a DPA status or benefit granted by the DPAC; (g) implement the decisions of the DPAC; Export Processing Zone 35 (h) recommend the recovery of costs to implement and administer the DPA programme; and (i) do all such other acts as may be incidental or conducive to the attainment of the objective of the DPAC or the exercise of its powers under these Regulations. (2) The Secretariat shall by notice in the Gazette, publish the following information on every Certificate of Designation and Certificate of Compliance that is issued by the DPAC– (a) the name of the approved company; (b) the status of the approved company; (c) the approved activity and the goods or services that have been authorized by the DPAC; and (d) the location of the DPA. (3) The description of every property that comprises a DPA shall be defined in the Certificate of Designation and remain in force until the benefits expire or are revoked by the DPAC. 5.-(1) A company may apply to the DPAC for a DPA status or a renewal of a DPA status, in the approved form. Application for DPA status. (2) An application under subregulation (1), shall include the following– (a) proof that the company is the title owner or the holder of a registered lease for the property the company proposes to use as a DPA; (b) proof that the proposed DPA is located in an area that is suitable for the proposed activity, in accordance with any established 36 Export Processing Zone developmental or environmental plans for the area; (c) a non-refundable application and processing fees as set out in Schedule III; and Schedule III. (d) any other documents as required by the DPAC. (3) The DPAC may approve or refuse an application made under subregulation (1). (4) Where the DPAC approves an application, the DPAC shall issue the DPA status to the applicant within sixty (60) working days of the date of receipt and acceptance of the application. (5) An approved company may apply to the DPAC to vary a DPA status or any information contained in the Certificate of Compliance or Certificate of Designation, in the approved form. (6) Where the DPAC refuses an application, the DPAC shall notify the applicant in writing, within sixty (60) working days of the date of receipt and acceptance of the application, giving reasons for the decision. Revocation of DPA status. 6.-(1) Where the DPAC intends to revoke the DPA status of an approved company in accordance with any of the grounds listed under section 21 of the Act, the DPAC shall issue not less than three (3) notices to the company in four (4) week intervals, via registered post, giving reasons for the intention to revoke the DPA status. (2) An approved company that is issued a notice under subregulation (1), may submit a response, in writing, to the DPAC by registered post, within thirty (30) working days of receipt of a notice, outlining the reasons the DPA status should not be revoked. Export Processing Zone 37 (3) An approved company that is issued a notice under subregulation (1), may appear before the DPAC to make oral representation or respond to any questions the DPAC may pose to the company. (4) Subject to subregulation (1), (2) and (3), the DPAC may revoke a DPA status of an approved company in writing within thirty (30) days of the decision, giving reason for the decision. (5) Where the DPA status of an approved company is revoked, the DPAC shall publish a notice of the revocation, in the Gazette. 7.-(1) An approved company shall submit a copy of their audited financial statements to the DPAC Secretariat, no later than ninety (90) days after the end of each financial year of the company, together with a copy of any report on the statement or on the accounts of the company. Records and audited financial statements. (2) Audited financial statements under subregulation (1), shall be prepared by the holder of a valid practicing certificate issued in accordance with the Accountancy Profession Act. CAP. 305. (3) The audited financial statements of an approved company shall include– (a) particulars of the capital expended by the company, revenues, expenditures, including capital investment and depreciation of the capital assets during the financial year in question; and (b) any other particulars relating to the company as the DPAC may require. (4) Notwithstanding subregulation (1), where an approved company does not intend to submit a copy of their audited financial statements within the timeframe stated in 38 Export Processing Zone subregulation (1), the company may apply to the DPAC for an extension of no more than two months. (5) An approved company that is unable to submit their audited financial statements within the period of extension granted by the DPAC under subregulation (4), due to exceptional and unforeseen circumstances, the company may apply to the DPAC for an extension of an additional two months, and provide proof to the satisfaction of the DPAC of the exceptional and unforeseen circumstances. (6) An approved company shall submit a quarterly report on the progress of the company, to the DPAC Secretariat, in the form specified by the DPAC. (7) Notwithstanding subregulation (1), an approved company with a turnover of less than five hundred thousand ($500,000) dollars annually or in its construction phase, may submit financial statements in lieu of audited financial statements. PART III Benefits Attached to DPA Status 8.-(1) In determining the number of years or the benefits that a company is entitled to, the DPAC shall have regard to, among other things– (a) the company’s profitability and payback period of investment; (b) the projected date for the start and completion of construction of the facilities, where relevant; Export Processing Zone 39 (c) any investment by the approved company in an activity, where the capital investment includes infrastructure, machinery, equipment, security, training, intellectual property, safety, standards, conformity and certification; (d) whether there is another company operating in Belize that produces the same or similar goods or services for the same market; (e) the level of training and knowledge the company has or will transfer to the employees of the company; (f) the level of research and development that is or will be undertaken by the company; (g) the need for in bond warehouse facilities to produce goods and services; (h) the expansion of the existing facilities of the company; or (i) any intention by the company to diversify its activities. (2) Any additional costs to be incurred, including for verification of certificates of incorporation and registration, shall be borne by the applicant. (3) A benefit granted to an approved company by the DPAC may be suspended if the company– (a) contravenes the provisions of the Act on more than one occasion; (b) fails to pay a fee set, or an administrative penalty issued by the DPAC, for more than 40 Export Processing Zone thirty (30) days after the date upon which the fee or penalty becomes due; or (c) is issued a second or subsequent penalty under the Act. (4) Goods under the Act may be classified as– (a) a non-controlled good that is intimately related to the activities of the approved company; or (b) a controlled good that is not intimately related to the activities of the approved company. PART IV Penalties 9.-(1) A company that contravenes or fails to comply with the provision of the Act shall be liable to an administrative penalty, as prescribed in Schedule II. Administrative penalty. Schedule II. (2) A company under subregulation (1) shall be issued a notice by the DPAC, stating the contravention, failure, the penalty and the date the penalty is due. (3) A penalty under subregulation (1), shall be paid within fifteen (15) working days of the date of receipt of the notice under subregulation (2). (4) Where a company is issued a notice under subregulation (2), and fails to pay the penalty within the period stipulated in subregulation (3), the company shall be liable to have the DPA status of the company suspended. Export Processing Zone 41 PART V Fees 10.-(1) The DPAC shall assess industrial roof space fees under this regulation annually and charge an approved company that is issued a DPA status as a DPA Business or a Special DPA, on the annual date of the issue of the DPA status, a fee ofFees. (a) twenty-five (25) cents per square foot for the first seven thousand five hundred (7,500) square feet of industrial roof space; and (b) twenty (20) cents per square foot for every square foot above seven thousand five hundred (7,500) square feet of industrial roof space. (2) An importer of goods under these Regulations, shall pay a social fee to the Comptroller of Customs upon entry of the goods into Belize. __________ 42 Export Processing Zone SCHEDULE I National Priority Sectors [regulation 3] 1. Agro-processing 2. Aquaculture 3. Data Processing/Information Technology Enabled Services including 4. Manufacturing 5. Developer of an Industrial or Business Park __________ Export Processing Zone 43 SCHEDULE II Administrative Penalties [regulation 7(1), (4), (5) and (6), section 9(3), 11(b), (c), (d), (e), (f), (g) and (h), 12(b), (d), (e), (g), (h) and (j), 13(b), and (e), 16(2), 17, 18(7) and 19(5)] NO. CONTRAVENTION PENALTY CORRESPONDING SECTION/ REGULATION 1. Conducting an activity not approval (a) $25,000 after receipt of notice after 15 days Section 13(c) and 14(b) by the DPAC (b) $1,000 per day for every additional day the activity continues (up to 15 days) (c) Suspension of DPA status after an accumulation of 30 days 2. Failure to submit quarterly report (a) $100 after receipt of notice after 15 days Regulation 7(6) (b) $100 per day for every additional day report remains outstanding, (up to 15 days) (c) Suspension of DPA status after an accumulation of 30 days 3. Failure to submit monthly report to Section 19(5) (a) $100 after receipt of notice after 15 days Central Bank (b) $100 per day for every additional day report remains outstanding, (up to 15 days) (c) Suspension of DPA status after an accumulation of 30 days 4. Failure to submit audited financials or Suspension of DPA status Regulation 7(1), (4) certified statements 5. Failure to submit audited financials or Revocation of DPA status Regulation 7(5) certified statements 44 Export Processing Zone 6. Failure to keep and maintain financial (a) $100 after receipt of notice after 15 days and other written records within the (b) $100 per day for every additional day records remain stipulated timeframe outstanding, (up to 15 days) (c) Suspension of DPA status after an accumulation of 30 days 7. Failure to inform DPAC of intention to (a) $6,000 after receipt of notice after 15 days change company ownership (b) $1,000 per day for every additional day application remains outstanding, (up to 15 days) (c) Suspension of DPA status after an accumulation of 30 days 8. Failure to apply to the DPAC to change (a) $6,000 after receipt of notice after 15 days the information stated in Certificate of (b) $,1000 per day for every additional day application Compliance remains outstanding, (up to 15 days) (c) Suspension of DPA status after an accumulation of 30 days 9. Failure to apply to the DPAC to change (a) $6,000 after receipt of notice after 15 days along with the information stated in Certificate of submission of new description of the property Designation (b) $1,000 per day for every additional day application remains outstanding, (up to 15 days) (c) Suspension of DPA status after an accumulation of 30 days 10. Failure to keep and maintain physical (a) $6,000 after receipt of notice after 15 days and electronic record of inventory, (b) $1,000 per day for every additional day records remain production or sale of goods and services outstanding, (up to 15 days) (c) Suspension of DPA status after an accumulation of 30 days 11. Failure to provide security to safeguard (a) First violation- $1,000 the movement of persons and goods in (b) Second violation - $10,000 and out of the DPA, including (c) Third violation - $10,000 and suspension of DPS status surveillance and fencing 12. Failure to comply with sanitary and (a) First violation-$1,000 phytosanitary requirements under the (b) Second violation - $2,000 Belize Agricultural Health Authority Act (c) Third violation - suspension of DPS status Export Processing Zone 45 13. Less than 85 percent of persons employed Section 11(d) (a) First violation - $1,000 in DPA are nationals of Belize or (b) Second violation - $2,000 CAR1COM nationals (c) Third violation - suspension of DPS status 14. Failure to ensure that persons employed Section 11(e) (a) First violation - $1,000 in DPA who are not nationals of Belize or (b) Second violation - $2,000 CARICOM nationals, are employed as (c) Third violation - suspension of DPS status senior management or technical staff 15. Failure to facilitate inspection by the Section 11(f) (a) First violation - $1,000 Customs and Excise Department, of (b) Second violation - $2,000 container of imported goods, that was (c) Third violation - suspension of DPS status and $1,000 granted pre-arrival clearance 16. Failure to ensure that company operating Section 12(b) (a) First violation - $1,000 within the DPA is, an approved company (b) Second violation - $2,000 or a permitted company under section (c) Third violation - suspension of DPS status 17. Failure to make improvements to the Section 12(d) (a) First violation - $1,000 DPA and provide all relevant (b) Second violation - $2,000 infrastructure, facilities, utilities and (c) Third violation - suspension of DPS status services necessary to support the approved activities of the businesses 18. Failure to adopt rules and regulations for Section 12(g) (a) First violation - $1,000 the DPA, with the prior approval of the (b) Second violation - $2,000 DPAC, to promote the safe and efficient (c) Third violation - suspension of DPS status operation of the DPA 19. Failure to promote and advertise the Section 12(h) (a) First violation - $1,000 DPA locally and internationally (b) Second violation - $2,000 (c) Third violation - suspension of DPS status 46 Export Processing Zone 20. Failure to provide an administration (a) First violation-$1,000 office for the DPA and an office to (b) Second violation - $2,000 accommodate a customs officer when (c) Third violation - suspension of DPS status carrying out duties at the DPA 21. Failure to ensure compliance with any (a) First violation - $1,000 domestic standards or other relevant (b) Second violation - $2,000 requirements, in accordance with the (c) Third violation - suspension of DPS status business plan submitted 22. Failure to comply with a Term of the (a) First violation - $1,000 Operations Contract (b) Second violation - $2,000 (c) Third violation - suspension of DPS status 23. Utilising fuel for activity other than (a) First violation - $1,000 generation of steam or electricity, or (b) Second violation - $2,000 operation of water pump (c) Third violation - suspension of DPS status 24. Refusal to allow entry into a DPA to a Suspension and fine of $10,000 Section 11(c) member of the DPAC Secretariat, Customs, a Police Officer or other Regulator __________ Export Processing Zone 47 SCHEDULE III S.I. 144 of 2020. Fees [regulation 5(2)] NON-REFUNDABLE APPLICATION FEE $ New Application $2,500.00 Renewal of DPA status $2,500.00 Variation of DPA status $1,250.00 PROCESSING FEE FOR NEW APPLICATION, RENEWAL OR OF DPA STATUS OR VARIATION TO CERTIFICATE OF COMPLIANCE RE NEW ACTIVITIES Where capital investment is $500,000.00 or less $ 5,000.00 Where capital investment is between $500,001.00 and $1,000,000.00 $ 7,500.00 Where capital investment is between $1,000,001.00 and $3,000,000.00 $10,000.00 Where capital investment is more than $3,000,001.00 $12,500.00 INDUSTRIAL ROOF SPACE DPA Developer $ 5,000.00 48 Export Processing Zone Made by the Minister of Economic Development, Petroleum, Investment, Trade and Commerce this 30th day of August, 2019. HON. ERWIN REHELAEL CONTRERAS Minister of Economic Development, Petroleum, Investment, Trade and Commerce __________