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DEFINITION
It is any area of land on which a factory
has been or is likely to be built, for the manufacture of
goods exclusively for exports.
ESTABLISHMENT OF EPZ
The Minister of Commerce and Industry
established the Export Processing Zone for the purpose of
attracting; promoting or increasing the manufacture of
export products. This programme was published in the
Government Gazette on 15th December 1995 as the law
pertaining to Export Processing Zone.
CONDITION FOR GRANTING EPZ
1.The Enterprise is allowed to import
scheduled equipment and raw materials duty free.
2.AII products will be sold on Export
Market but if there is a request, the law permits total 20%
of total production may be sold locally and surtax must be
paid.
LICENSING
The Ministry of Commerce and Industry
licenses the Export Enterprise. It has the overall
responsibility for the administering of the EPZ programme.
The Malawi Revenue Authority monitors the activities.
REGISTRATION WITH THE DEPARTMENT
Application has to be made to the MRA on F56 in
triplicate through the Collectorate Office. Upon inspection;
the officer would like to know the following:
- The type of goods that will be allowed in that EPZ;
- The financial stand of the applicant;
- Ware house for the raw material and finished goods;
- The building must have a fence along the boundary of
the EPZ and provisions of exit and entry points;
- Windows should have burglar bars; the doors must be of
sound construction not capable of being lifted off their
hinges and provided with a secure lock;
- The size of the proposed area must be big enough to
cater for the intended activities.
Once the officer is satisfied, forms are
submitted to MRA with a covering letter giving full facts.
MRA then calls for a license fee of K2, 000 or K1, 000 after
June and a bond (security) which can be arranged through the
Bank or Insurance Company on F123 in four copies.
OPERATION
- Goods are cleared into EPZ on F12, accompanied by Form
26.
- Goods are cleared out on F12.
- Goods are transferred to another EPZ on F12 (bond to
bond transfer).
- On payment of duty on F12.
ILLEGAL ACTS
1. No Export Enterprise is allowed
to carry on any trade or business other than that
specified in the enterprise certificate. Any enterprise
found operating contrary would be guilty of an offence,
under section 15 of EPZ Act.
Export Enterprise is not allowed to
remove scheduled equipment and materials without the
authority of MRA. Enterprise found doing contrary to the law
will be guilty of an offence under Section 17 of the EPZ
Act.
ADVANTAGES OF EPZ
-
The Government earns foreign reserve
through the exportation of the finished products.
-
Provide employment.
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