THE SPECIAL ECONOMIC ZONES ACT

THE SPECIAL ECONOMIC ZONES REGULATIONS, 2017

 

In exercise of the power conferred upon the Minister, after consultation with the Authority, by section 49 of the Special Economic Zones Act, the following Regulations are hereby made:

 

PART I—Preliminary Provisions

1. These Regulations may be cited as the Special Economic Zones Regulations, 2017.

2. These Regulations shall apply to all Special Economic Zones established in Jamaica in accordance with the Act and these Regulations.

3. In these Regulations, unless the context requires otherwise— “Act” means the Special Economic Zones Act;

“Administrator” means any person who is—

  1. (a)  an officer or employee of the Authority;

  2. (b)  a member of the Board;

  3. (c)  the Chief Executive Officer;

  4. (d)  a member of a committee appointed by the Board;

“applicant” means, as the case may require, a business entity that makes a written proposal or an application, to—

  1. (a)  the Authority for a SEZ pre-approval letter or a SEZ Developer Agreement;

  2. (b)  a developer for a subconcession;

  3. (c)  the Authority for an authorization on behalf of a zone user, in the manner provided for under these Regulations;

“approved enterprise” has the meaning assigned to it in the Act;

“Authority” has the meaning assigned to it in the Act;

“authorized SEZ activity” means an economic or social activity undertaken by a developer, an occupant or a zone user in a SEZ, which—

  1. (a)  is not an excluded activity within the meaning of section 41 of the Act; and

  2. (b)  does not—

    1. (i)  contravene public policy, public safety or national security;

    2. (ii)  violate any applicable environmental, heritage or labour laws; or

    3. (iii)  violate any intellectual property rights;

“Board” has the meaning assigned to it in the Act;

“Business Acceleration Centre” means an administrative office, whether a physical structure or an electronic platform, established by the Authority, to facilitate the effective provision of administrative services to a developer, an occupant, a zone user, sponsor and a SEZ resident through the effective coordination with the competent authorities;

“business entity” means any public, private or mixed public-private entity incorporated under the Companies Act;

“CARICOM national” means a person who—

  1. (a)  is a citizen of a Member State; or

  2. (b)  has a connection with a Member State of the kind which entitles him to be regarded as belonging to, or if it be so expressed, as being a native of or resident of the Member State for the purposes of the laws thereof relating to immigration;

“Chairman” means the Chairman of the Board;

“Chief Executive Officer” has the meaning assigned to it under the Act;

“competent authority” means any national, municipal or local government agency, directorate, department or such other authority having concurrent or shared jurisdiction over SEZ lands, operations or activities;

“concept master plan” means the project plan that generally identifies the main components of a developer’s detailed master plan, including general land uses, road networks, plot and land-area layouts, as well as the location of planned infrastructure, buildings and other structures;

“concession agreement” has the meaning assigned to it under the Act;

“construction observer” means a person who is selected and approved by the Authority, in consultation with the Planning Department, to exercise any or all of the following powers, duties, and responsibilities—

  1. (a)  to determine, in consultation with the Authority and the Planning Department, the zoning, landscaping, design and construction standards to be applied to construction works in a SEZ;

  2. (b)  to monitor the development of all stages of SEZ-related construction works (including infrastructure) in accordance with the obligations set forth in the Fifth Schedule to the Act, these Regulation and any applicable law;

  3. (c)  to report to the Authority on the progress of all stages of SEZ-related construction works in accordance with the reporting procedures established by the Authority; and

  4. (d)  to undertake other contractual duties, responsibilities and obligations imposed by the Authority;

“continuing beneficiary” has the meaning assigned to it under Part IX of the Act;

“Customs Agency” means the Jamaica Customs Agency;

“customs duties,” means the duties payable by a business entity under the Customs Act;

“Customs Laws” has the meaning assigned to it under the Customs Act;

“customs territory” has the meaning assigned in the Act;

“detailed master plan” means an applicant’s project plan that identifies in detail—

  1. (a)  the full plot and land area layout, sketch plans, and designs of a proposed SEZ;

  2. (b)  the infrastructure plan;

  3. (c)  the final land-use plan; and

  4. (d)  all infrastructure and building construction drawings, including proposed height limits, setback requirements and density parameters in each proposed land-use designation or area;

“detailed SEZ development plan” means an applicant’s detailed master plan, together with its detailed technical-economic feasibility study, that includes the business plan and financial analysis, that sets out, among other technical, economic, business and financial evaluations, all social mitigation measures and phased development and zoning plans as specified in these Regulations;

“developer” has the meaning assigned to it in the Act;

“effective date” has the meaning assigned to it in the Act;

“existing Free Zone” has the meaning assigned to it under Part IX of the Act;

“exportation” means the act of shipping goods or providing ancillary services—

  1. (a)  directly from a SEZ customs controlled area to either the customs territory or outside the customs territory; or

  2. (b)  from the customs territory to a SEZ customs controlled area,

and include re-exports;

“final decision” means any final administrative decision issued by the Authority or the Minister, as the case may be, pursuant to the 

procedure prescribed in the Act, or the final decision made pursuant to these Regulations and includes—

  1. (a)  the denial of any application or proposal, as the case may be, for a SEZ pre-approval letter, SEZ Developer Agreement, subconcession, licence, authorization, permit or certificate under the Act or these Regulations, or

  2. (b)  the suspension, cancellation or modification, amendment or variation of a SEZ pre-approval letter, agreement, subconcession, lease, licence, authorization, permit or certificate under the Act or these Regulations;

“final land use plan” means the proposed detailed land uses in each of the separately-designated land-use subdivisions, parcels, plots, and areas of the proposed SEZ, such as light, medium and heavy industry land uses, as prescribed by any applicable guidelines issued by the Authority;

“fit and proper person” has the meaning assigned to it in paragraph 3 of Part II of the Third Schedule to the Act;

“fixed lease payment” has the meaning assigned to it in the Act;

“Free Zone Promoter” has the meaning assigned to it under Part IX of the Act;

“Free Zone Tenant” means any person approved by the Free Zone Promoter under the repealed Act to carry out authorized economic activities in a free zone as a tenant thereof;

“government company” has the meaning assigned in the Act;

“importation” means the act of directly entering any goods of any foreign origin into, or directly providing any services of any foreign origin in, the customs territory from either outside the customs territory or from a SEZ customs controlled area;

“infrastructure” means a physical structure developed primarily to serve a SEZ area, and includes a road, airport, port, dam, telecommunications facility, electric power generation, transmission and distribution facilities, including industrial buildings, office blocks, warehouses, storage areas, sanitation facilities, health care facilities, educational and leisure facilities, fire stations, clinics, police stations, customs inspection areas and parking lots;

“licence agreement” has the meaning assigned to it in the Act;

“master concession” has the meaning assigned to it in the Act;

“Member State” means a Member State of the Caribbean Community in accordance with Article 3 of the Revised Treaty, excluding an Associate member within the meaning of Article 231 of the Revised Treaty of Chagharamas establishing the Caribbean Community, including the CARICOM Single Market and Economy, signed at Nassau, Commonwealth of the Bahamas on the 5th day of July, 2001;

“occupant” has the meaning assigned to it in the Act;

“off-site infrastructure” means the infrastructure provided outside the perimeters of an established SEZ, including public utility, transport and other infrastructure connections to a SEZ;

“on-site infrastructure” means the infrastructure provided inside the perimeters of an established SEZ;

“operating certificate” has the meaning assigned to it in the Act;

“preliminary land-use plan” means the general land uses in each of the separately-designated land-use subdivisions, parcels, plots, and areas of the proposed SEZ, including industrial, commercial, logistics, education, residential, and open-space land uses;

“private property rights” means all private property rights and interests in all of their constituent forms and parts, including all private assets, leasehold estates, and contract rights, whether such private property rights and interests are immovable, movable, tangible, or intangible, however divided and wherever situated in, or in relation to a SEZ;

“public-private partnership arrangement” means the legal relationship between public and private parties based on a contractual agreement or other legal instrument, such as a concession agreement, lease, joint venture, management contract, a build operate transfer (BOT), a build own operate (BOO), or a build own operate transfer (BOOT) arrangement, whereby the parties jointly agree to develop, operate, maintain and promote a SEZ;

“register” has the meaning assigned to it in the Act; “related person” in relation to an Administrator means—

(a) a company or body corporate of which the person beneficially owns or controls, directly or indirectly, shares or debentures convertible into shares that carry more than twenty percent of the voting rights—

(i) under all circumstances;

(ii) by reason of the occurrence of an event that is continuing; or

(iii) by reason of a currently exercisable option or right to purchase those shares or those convertible debentures;

  1. (b)  a partner of that person acting on behalf of the partnership of which they are partners;

  2. (c)  a trust or estate in which that person has a substantial beneficial interest or in respect of which he serves as a trustee, or in a similar capacity;

  3. (d)  a spouse of that person;

  4. (e)  a child, step child or adopted child of that person;

  5. (f)  an immediate relative of that person or his spouse;

“repealed act” means the Jamaica Export Free Zones Act;

“Revenue Laws” means the Acts referred to in the First Schedule to the Act, including the Assets Tax (Specified Bodies) Act, the Income Tax Act, the General Consumption Tax Act, the Property Tax Act, the Stamp Duty Act, and the Transfer Tax Act;

“security interest” has the meaning assigned to it in the Security Interest in Personal Property Act;

“SEZ” means a Special Economic Zone;

“SEZ area” means the delimited geographical area of any SEZ, as designated in the governing SEZ Developer Agreement (whether a master concession or a licence agreement) that is executed by the Authority and a developer;

“SEZ building completion certificate” means the certificate issued by the Authority in accordance with the construction standards and building permit guidelines of the Authority, that certifies that the person to whom it has been issued has completed the authorized construction work in a SEZ in accordance with the specifications set forth in the governing SEZ building permit;

“SEZ building permit” means a permit issued by the Authority that authorizes the commencement of SEZ construction work, including infrastructure, in conformity with all civil engineering and planning specifications under the Town and Country Planning Act and any other relevant law and any internationally recognized standards, including any international development guidelines and 

infrastructure development plans as adopted by a directive of the Board;

“SEZ business entity” means a business entity that is a developer, an occupant or a zone user;

“SEZ Certificate of Residency” means a certificate issued by the Authority to a person in accordance with Part XI that authorizes the person to reside in a SEZ residential area as a SEZ resident in accordance with the Act, these Regulations or guidelines issued by the Authority;

“SEZ customs controlled area” means a geographically delimited, fenced in, physically secured, and restricted access area comprising SEZ lands that are subject to the control and supervision of the Customs Agency, under the Customs Act, the Act, or these Regulations, that is situated outside the customs territory for purposes of exempting the assessment or imposition of customs duties, taxes, tariffs and levies, as well as any other customs charges, fees, permits, licences or requirements;

“SEZ Developer Agreement” means a licence agreement or a master concession executed between the Authority and a developer pursuant to the Act and these Regulations under which the developer exercises certain rights and assumes certain obligations when designing, financing, constructing, developing, operating, managing, maintaining and promoting a SEZ;

“SEZ lands” refers to all public and private lands, as divided into separate subdivisions, parcels, plots and individual areas within any plot, that comprise a SEZ;

“SEZ occupancy permit” means the permit issued by the Authority to a SEZ business entity that authorizes the commencement of authorized SEZ activities with regard to any infrastructure to be constructed by the SEZ business entity;

“SEZ pre-approval letter” means the letter that is issued by the Authority to an applicant which constitutes the preliminary administrative approval of an applicant’s proposal to obtain a SEZ Developer Agreement, (whether a master concession or licence agreement), which confers on the applicant certain provisional rights and obligations as specified under these Regulations;

“SEZ resident” means a natural person who is issued with a SEZ Certificate of Residency by the Authority in accordance with these Regulations;

“single entity Zones” has the meaning assigned to it in section 17(1) of the Act;

“site-lease agreement” has the meaning assigned to it under the Act;

“Special Economic Zone” has the meaning assigned to it under the Act;

“Special Economic Zone Fund” has the meaning assigned to it under the Act;

“sponsor” has the meaning assigned to it under the Act; “subconcession” has the meaning assigned to it under the Act; “zone user” has the meaning assigned to it under the Act.

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PART II—Administrative Mission and Co-ordination of the Authority

4. The Authority shall have a central office and may establish branch offices anywhere in Jamaica.

5.—(1) Pursuant to section 6(j) of the Act, the Business Acceleration Centre to be established may take the form of physical office structures, on line websites or electronic platforms.

(2) The Business Acceleration Centre shall render administrative services to all sponsors, developers, occupants, zone users and SEZ residents, in accordance with the applicable scheme of services as established by the applicable guidelines issued by the Board.

(3) Theapplicableguidelinestobeestablishedpursuanttoparagraphs (1) and (2) shall require that the Business Acceleration Centre provide intermediated services that seek to—

(a)  expedite the establishment, development, operation, maintenance, promotion, administration and regulation of all SEZs by providing administrative assistance on a fast-track basis; and

(b)  facilitate, on an expedited basis, the issue of all required approvals and authorizations under the Act, these Regulations, and any applicable law including SEZ pre-approval letters, SEZ Developer Agreements, operating certificates, site lease agreements, SEZ occupancy permits, zone user authorizations, subconcessions, SEZ Certificates of Residency, SEZ building permits, SEZ building completion certificates, as well as all applicable environmental permits and clearances, health, sanitary and safety permits, taxpayer and customs identification numbers and any other authorization required by law.

(4) The Business Acceleration Centre shall maintain all relevant information on the official website of the Authority in order to facilitate information sharing and the efficient administration of SEZs.

6.—(1) The Chief Executive Officer shall cause to be established and maintained, an official website of the Authority, to facilitate information sharing and the efficient administration of SEZs.

(2) Pursuant to paragraph (1), the official website of the Authority shall contain all applicable information and application forms that are required for the purposes of obtaining SEZ pre-approval letters, SEZ Developer Agreements, subconcessions, licences, permits, certificates, authorizations and other required approvals under the Act and these Regulations.

7.—(1) The Authority shall execute memoranda of understanding (MOUs) with the competent authorities as are identified by the Board in an effort to coordinate with such competent authorities, through its Business Acceleration Centre, so as to ensure the efficient coordination, administration, and regulation by the competent authorities with all SEZs.

(2) Allcompetentauthoritiesshallretaintheirrespectiveadministrative jurisdiction under existing applicable law to regulate the SEZs.

(3) Each Business Acceleration Centre shall consult with the relevant competent authorities to resolve any conflicts that may obstruct any investment in a SEZ, and shall provide administrative solutions to a sponsor or developer who is experiencing any impediment, delay or other difficulty with regard to the undertaking of an investment in a SEZ.

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PART III—General Rules of Conduct Governing Administrators and Related Persons

8.—(1) An Administrator or any related person shall not accept any form of compensation for any personal benefit from any sponsor, developer, occupant, zone user or SEZ resident, or on behalf of any person with whom the Administrator or the related person has a personal business or financial relationship.

(2) An Administrator shall not arrange for any compensation for the benefit of any related person in connection with the performance by the Administrator of any function under the Act or these Regulations.

(3) AnAdministratororarelatedpersonshallnotknowinglyacceptfor himself, or on behalf of any person with whom the Administrator or the related person has a personal business or a financial relationship, any gift or credit, if the acceptance of the gift or credit would result, or would give the appearance of resulting, in a conflict of interest with respect to the exercise, performance, or discharge of any powers, duties, obligations or responsibilities of the Administrator under the Act or these Regulations.

(4) Where an Administrator or a related person knowingly has any personal, financial, or business interest in any matter brought for deliberation or decision before the Authority, the Administrator shall disclose in writing, the conflict of interest to the Board and shall be disqualified from participating in any deliberation or decision with regard to the matter.

(5) Every Administrator shall submit a sworn written statement in the applicable form provided by the Authority, upon his employment with the Authority, before discharging any function, duty, obligation or responsibility on behalf of the Authority.

9.—(1) All confidential information acquired by an Administrator in the course of his official duties on behalf of the Authority shall be kept secret and the confidential information shall not be—

  1. (a)  used for any personal gain; and

  2. (b)  disclosed without the express written consent of the person who provided the confidential information to the Authority, or except when the disclosure of such information is required by a competent judicial or arbitration tribunal.

(2) An Administrator who contravenes paragraph (1) commits an offence and is liable, on summary conviction before a Parish Court, to a fine not exceeding one million dollars, or to a term of imprisonment not exceeding one year.

PART IV—Approval Process for Granting of, SEZ Pre-Approval Letter SEZ Developer Agreement and Operating Certificate

 

10.—(1) Only a developer that has entered into a SEZ Developer Agreement with the Authority shall have the legal authority to develop, operate, maintain or promote a SEZ in accordance with the Act and these Regulations.

(2) Subject to the provisions of the Act and these Regulations, a developer that wishes to develop, operate, maintain and promote a SEZ shall obtain a SEZ Developer Agreement from the Authority.

(3) In order to obtain a SEZ Developer Agreement to undertake any of the activities referred to in paragraph (1), a developer shall first obtain a SEZ pre-approval letter from the Authority.

11. Pursuant to regulation 10(3), in order to obtain a SEZ pre-approval letter from the Authority, the developer, (hereinafter referred to as the applicant) shall submit a written proposal to the Authority.

12. The written proposal referred to in regulation 11 shall be made in the applicable form set out on the official website of the Authority and shall contain the following information—

(a) proof of payment of the non-refundable fee set out in the First Schedule;

(b) a certified copy of the memorandum and articles of association and certificate of incorporation of the applicant;

(c) a certified copy of the taxpayer registration number of the applicant and if applicable, the General Consumption Tax (GCT) registration number issued by the Tax Administration Jamaica;

(d) a preliminary business plan outlining the information provided in the Second Schedule, including a technical economic feasibility study and a preliminary business financial plan together with a concept master plan and a preliminary land-use plan that generally describe the nature and projected value of the investments to be carried out at the SEZ, including estimated investments relating to SEZ design, financing, construction, development, services, operations, maintenance and promotion activities and projected development costs issued to be incurred by the applicant during the different development phases of’ the proposed SEZ;

(e) where the application relates to entry into a licence agreement, relevant land-occupancy documents as evidenced by either—

(i) a certified copy of the certificate of the legal right to land ownership or occupancy;

(ii) a certified copy of a long term lease agreement, the duration of which is at least twenty years or such other period as may be specified by the Authority; or

(iii) alternatively, any documents establishing that the applicant is in the process of obtaining occupancy rights to the proposed SEZ lands;

(f) an affidavit demonstrating that the lands comprising the proposed SEZ are not subject to any dispute or any actual or impending legal liability or contingency that could give rise to a legal claim relating to land occupancy;

(g) where applicable, an affidavit, together with supporting documents, that demonstrate that third party public or private land owners of the proposed land area have declared their written consent to the proposed SEZ;

(h)  a description of the number of hectares or acres of land allocated for the proposed SEZ, that is based on a preliminary site survey as set out in the applicant’s concept master plan and preliminary land-use plan, including the location, size and site qualifications of the land area in question, such as topography, soil conditions, human settlements, environmental constraints, landmarks and the number of Jamaican business entities projected to carry out activities at the site as occupants of the SEZ;

(i)  a written statement providing that the concept master plan and preliminary land-use plan, including all proposed SEZ construction, are compatible with the applicable land-use, urban planning, zoning, construction, design and landscaping laws and standards;

(j)  a preliminary description of the quality, condition, and size of existing infrastructure at or near the proposed SEZ site, together with any on site and off site infrastructure that the applicant intends to have constructed at the proposed SEZ site;

(k)  maps or other abstracts of the proposed SEZ land area showing all transportation networks;

(l)  the class or kind of SEZ proposed at the site, whether a multi- purpose SEZ, a specialized SEZ, such as a maritime or aviation related SEZ, or a single-entity SEZ, subject to section 17 of the Act and these Regulations;

(m)  the estimated number of workers to be employed by the applicant at the SEZ and their skill levels; and

(n)  any additional information required by the Authority that supports the establishment and development of the SEZ; provided that the Authority affords the applicant reasonable notice to provide such information.

13.—(1) Where the Authority considers that the written proposal submitted under regulation 12 is deficient, it shall, within fourteen days of the receipt of the written proposal, notify the applicant of the deficiencies.

(2) An applicant shall, within twenty-one days of the receipt of the notice under paragraph (1), resubmit a written proposal correcting the deficiencies; otherwise the Authority shall reject the written proposal unless an application for extension of time to submit a corrected written proposal has been made by the applicant and granted by the Authority.

(3) Subject to paragraph (4), where the Authority does not issue a written notice outlining any deficiencies, the written proposal shall be deemed to have sufficiently complied with the requirements under regulation 12.

PART IV —Revocation of a SEZ Developer Agreement and Cancellation of Operating Certificate and Selection and Approval of Substitute Developer

 

22.—(l) Subject to the provisions of paragraph (3), where any of the circumstances under paragraph (2) occur, the Authority may revoke a SEZ Developer Agreement and cancel the operating certificate relating thereto before the expiration of the date stipulated therein.

23.—(l) A developer whose SEZ Developer Agreement has been revoked and the operating certificate relating thereto cancelled, may challenge the Authority’s decisions to do so in accordance with the dispute resolution provisions set out in Part XVII.

(2) A developer shall cease to enjoy the SEZ rights and privileges granted under a SEZ Developer Agreement and an operating certificate relating thereto upon the conclusive revocation of the SEZ Developer Agreement and the cancellation of the operating certificate relating thereto.

24.—(1) Where a SEZ Developer Agreement has been revoked and the operating certificate relating thereto cancelled, the business entity shall cease to enjoy the status of a developer with effect from the date on which the final decision of the Authority takes effect.

(2) If the circumstances warrant, the Authority or any competent authority may take any legal action available under any applicable law against the developer, as may be appropriate, including the imposition of any applicable penalties, arising under the Act or these Regulations.

(3) The Authority may require the developer, whose SEZ Developer Agreement has been revoked and the operating certificate relating thereto cancelled, to repay to the Government any taxes and duties that were previously exempted or exonerated under the Act and the Authority shall notify the Commissioner General of Tax Administration Jamaica, the Commissioner of Customs, and any relevant competent authority, of the revocation and cancellation of a SEZ Developer Agreement and the operating certificate, respectively.

(4) Any successor in interest to the developer shall be jointly liable for any tax and duty repayment owed.

(5) Where the SEZ Developer Agreement is a master concession, then, on the revocation of the SEZ Developer Agreement and the cancellation of the operating certificate relating thereto, the assets of the developer shall become the property of the Authority in accordance with section 30 of the Act, subject to any rights to compensation specified in the SEZ Developer Agreement.

(6) Where the SEZ Developer Agreement is a licence agreement, then, the assets of the developer shall be disposed of in accordance with the provisions of the licence agreement, due regard being paid to any compensation that may be owed to the developer.

(7) On the revocation of a SEZ Developer Agreement that is a licence agreement and the cancellation of an operating certificate relating thereto, the Authority shall immediately assume the interim responsibility for the management and operation of the SEZ and as a result, the Authority should be empowered to make such arrangements as it considers necessary, having regard to the legal rights of any holders of security interests granted by the developer in accordance with the SEZ Developer Agreement.

25. Where a SEZ Developer Agreement is revoked and the operating certificate relating thereto cancelled, the occupants and zone users shall have the legal right to continue to conduct authorized SEZ activities in accordance with their respective subconcessions or authorizations.

 

PART VI.—Establishment of SEZs on Authority’s Initiative and Expansion of Established SEZ

 

27.—(1) The Authority shall develop guidelines to assist it in deciding whether or not to make a recommendation to the Minister, to designate a geographical area as a SEZ under section 18.

(2) When a SEZ is designated, on the initiative of the Minister pursuant to section 18 of the Act, the Authority shall be authorized to assume responsibility for designing, financing, developing, operating, maintaining, and promoting the SEZ, so long as it enters into a public-private partnership arrangement in accordance with the applicable law.

28.—(1) AnestablishedSEZmaybeexpandedattherequestofadeveloper.

(2) The Authority may expand the perimeters of an established SEZ at any time, but shall observe the procedure on expansion set out in the Act and these Regulations.

(3) A developer that wishes to expand a SEZ shall submit to the Authority, a written proposal for expansion in the form provided in the Fifth Schedule accompanied by the following supporting documentation—

  1. (a)  documents indicating that the developer has the right to occupy the relevant land, which may be either a certified copy of the certificate of the legal right to land occupancy, or a certified copy of a long-term lease agreement; the duration of which shall be at least twenty years or such other period as specified by the Authority;

  2. (b)  a detailed description of all economic and social activities to be carried out in the expanded SEZ, together with any transfer of technology and technical training plans contemplated by the project and the probable economic impact of the SEZ expansion on the national and local economies and on consumers;

  3. (c)  a detailed SEZ development plan that includes a final business plan (prepared in light of the approved general planning scheme issued by the competent authority, especially with regard to height limits, setback requirements, and density parameters in each land- use designation), as supplemented by the three most recent financial statements of the developer;

  4. (d)  a written description of any existing activities being carried out in or near the proposed SEZ expansion site;

  5. (e)  a written statement explaining the need for SEZ services at the proposed SEZ expanded site as supported by business surveys, detailed market demand studies or expressions of interest from potential business entities;

  1. (f)  information projecting the amount of any population resettlement resulting from the construction and development of the proposed SEZ expansion site, together with any resettlement plans or mitigation measures;

  2. (g)  environmental impact and strategic environmental assessments, including proposed mitigation measures, as required by the applicable environmental laws;

  3. (h)  the estimated time schedule for the design, construction, and activation of the proposed SEZ expansion site;

  4. (i)  the proposed physical security measures and construction means to be employed by the developer to separate the different SEZ development areas, if any, from each other and from the customs territory, in view of the proposed expanded SEZ site;

  5. (j)  a schedule of fees to be charged for any goods, services, infrastructure, or other structures provided directly or indirectly by the developer at the proposed expanded SEZ site; and

  6. (k)  any additional information deemed relevant by the Authority.

    (4) A proposal for SEZ expansion shall be subject to the approval procedures and eligibility criteria set out in these Regulations.

(5) Where the Authority makes a recommendation to the Minister for approval of a proposal to expand a SEZ, and the Minister approves, the approval shall be signified by an order published in the Gazette.

(6) Pursuant to paragraph (5), following the publication of the order, the Authority shall amend the SEZ Developer Agreement executed with the developer and issue an amended operating certificate.

(7) Subject to paragraph (8), the execution of an amended SEZ Developer Agreement, together with the issue of an amended operating certificate shall entitle the developer to commence authorized SEZ activities within the expanded SEZ site on the effective date of execution of the amended SEZ Developer Agreement.

(8) The relevant fees prescribed in the First Schedule in respect of the expansion of a SEZ and the amendment of the SEZ Developer Agreement and the operating certificate shall be paid.

 

PART VII.—Provisions Relating to Developers

 

29.—(1) In conformity with paragraph 1(a) of the Fourth Schedule to the Act, only a business entity registered under the Companies Act may carry out the activities of a developer in a SEZ.

(2) A business entity that carries out activities as a developer pursuant to a SEZ Developer Agreement shall enjoy the rights and comply with the obligations set out in the Act and these Regulations.

30. In order to qualify as, and maintain the legal status of, a developer, a business entity shall comply with the following legal conditions—

(a) be the signatory to a SEZ Developer Agreement executed with the Authority;

(b) in the case of a SEZ established pursuant to a master concession, be the signatory to a site lease agreement executed with the Authority in accordance with the applicable SEZ Developer Agreement, the operating certificate, and the governing lease agreement.

(c) be the holder of an operating certificate;

31.—(1) A developer shall been titled to the following legal rights under the Act and these Regulations to—

  1. (a)  acquire and maintain occupancy rights with respect to SEZ lands and other assets situated on such lands in conformity with the Act and these Regulations;

  2. (b)  acquire assets situated on SEZ lands in conformity with the Act and these Regulations;

  3. (c)  transfer legal occupancy rights with respect to SEZ lands and other assets located on such lands to other business entities within the SEZ in accordance with the Act, these Regulations, the governing SEZ Developer Agreement and operating certificate, or the applicable site-lease agreement, as the case may be;

  4. (d)  establish, modify and collect rental payments due the developer from occupants in accordance with the governing subconcession, or from zone users in conformity with the governing authorization;

  5. (e)  develop and service the SEZ lands and other assets situated on such lands in accordance with the Act, the Regulations, and the governing SEZ Developer Agreement and operating certificate;

  6. (f)  provide or cause to be provided, all utilities and other basic services inside the SEZ consistent with the requirements of the occupants and zone users in accordance with the Act, these Regulations, any other applicable law, and the governing SEZ Developer Agreement and operating certificate, and to charge fees for such services in cases where such utilities or other basic services are provided directly by the developer;

  7. (g)  operate, maintain, and promote the SEZ under any legal arrangement in accordance with the Act, these Regulations, the governing SEZ Developer Agreement and operating certificate, and any applicable internal operating guidelines relating to a SEZ;

  8. (h)  enter into subcontracting arrangements with private third party business entities, for the design, financing, development, servicing, operation, maintenance, and promotion of the SEZ, SEZ lands, on-site infrastructure, off-site infrastructure, and other assets, subject to the conditions specified in the governing SEZ Developer Agreement;

  9. (i)  employ Jamaican nationals, CARICOM nationals and foreign nationals, in accordance with the employment laws and other applicable laws;

  10. (j)  receive compensation for any disruption of its operation or loss or damage resulting from any willful or grossly negligent acts or omissions committed by any competent authority;

  11. (k)  be entitled to the benefits and incentives set out in Part V of the Act and the First Schedule to the Act and as specified in these Regulations under Part XII;

  12. (l)  modify or amend the detailed master plan approved by the Authority, subject to the procedural requirements specified in any guidelines issued by the Authority; and

  13. (m)  exercise any other rights under the Act, the Regulations, and the governing SEZ Developer Agreement and operating certificate.

(2) The rights specified in paragraph (1) shall be granted for the period during which the developer maintains the status of developer in accordance with the provisions of the Act and these Regulations.

32.—(1) All developers (regardless of whether the SEZ is subject to a master concession or licence agreement) as well as their subcontractors, shall comply with the following general obligations—

  1. (a)  to adhere to the Act, these Regulations and any other applicable law governing the SEZ Developer Agreement and the operating certificate;

  2. (b)  to provide and maintain, suitable markings that effectively demarcate the lands comprising the SEZ, including demarcating any customs controlled areas and the customs territory, as well as providing fencing around the perimeter of the SEZ area as required by paragraph 3(1) of the Fifth Schedule to the Act;

  3. (c)  to commence operations for the development, design, financing, and construction of assets on the SEZ lands, including on-site infrastructure, transportation connections and residential areas, in accordance with any applicable law, including the governing legal requirements under the Act, these Regulations, the governing SEZ Developer Agreement, the operating certificate and the relevant SEZ building permit;

  4. (d)  to maintain at all times all assets situated on the SEZ lands, including all on-site infrastructure, as well as all utilities and other basic services described in the applicable SEZ Developer Agreement, in operational working condition;

  5. (e)  to grant the Government, including any competent authority or any duly authorized employee or representative thereof, general access to the SEZ as is necessary to facilitate the effective discharge of the legal powers, duties and responsibilities of the Government or the competent authority;

  6. (f)  to provide for private security within the SEZ to the extent necessary to ensure the proper and orderly conduct of SEZ authorized activities, as well as to provide general security measures for the overall SEZ area and to abide by and implement instructions issued by any competent authority aimed at enhancing security within the SEZ, and to grant special access to any competent authority for the deployment of national, municipal, or local security personnel in the SEZ area as is necessary by such competent authority;

  7. (g)  to develop and operate the SEZ in a reasonable commercial manner in accordance with the Act, these Regulations, and the governing SEZ Developer Agreement and the operating certificate;

  8. (h)  to provide, free of charge, suitable accommodation and amenities as the Authority and the Customs Agency may reasonably require;

  9. (i)  on a bi-annual basis, (by the 15th day of the first month subsequent to the relevant six-month period), to submit reports to the Authority, in a form approved by the Authority, which shall provide for the following information in respect of a SEZ—

    1. (i)  the total monetary value of SEZ investments undertaken by the developer, occupants and zone users during the preceding calendar quarter, and the investments projected for the forthcoming calendar quarter;

    2. (ii)  the area of SEZ lands under development or operation and the assets constructed thereon;

    3. (iii)  the SEZ occupancy rate;

    4. (iv)  the number of employees of the developer working in the SEZ, as well as their gender and nationality;

       

 

 

 

 

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