REGULATIONS OF FREE ZONE IN SYRIAN ARAB REPUBLIC
Decree No. 18 On the Fundamental Regulations Of the Establishment
President of the Republic
to the rules of the provisional constitution
to decision no.18 issued by the council of ministers on 18.2.1971
shall be created a public establishment that enjoys the status of a
juristic person and has a financial and administrative autonomy to
be called the public establishment of free zones in the Syrian Arab
Republic attached to the minister of economy and foreign trade.
establishment shall be considered to be an establishment of an
economic character and shall be governed in its dealing with third
party by the provisions of the law of commerce.
head office of the establishment shall be in the city of Damascus
and the establishment may set up branches in other Syrian cities if
and when necessary.
Establishment shall assume the following duties:
run and operate the free zones, to set up such warehouses and stores
as may be necessary for such free zones, and to develop them so as
to contribute to the growth and prosperity of these zones.
propose such projects so as to set up or to cancel free zone.
organize the functions of the free zones and to coordinate their
activities so as to serve economy and to develop international trade
exercise all such powers that has been exercised by such bodies
operating the free zones except such powers in relation to the
affairs of customs control.
to handle all matters concerning the management and operation of the
Establishment shall observe such provisions and conditions
concerning customs and currency control and shall provide such
constructions as may be necessary for this purpose.
Establishment shall have a board of directors to be set up and its
powers to be defined as provided for in the fundamental regulations.
Establishment shall be run by a general manager to be appointed by a
decree and his powers shall be defined in the fundamental
Fundamental regulations, the numerical strength and the operation
regulations of the Establishment shall be issued by a decree with
the approval of the Economic committee and these regulations may
embody exclusions from the provisions of the laws and regulations in
other regulations of the Establishment shall be issued by an order
from the minister of economy and foreign trade on a proposal by the
board of directors provided that the approval by the minister of
finance of the financial regulations shall be obtained.
the issue of the regulations referred to in the two preceding
clauses the internal, financial and appointment and employment
regulations in force at present in the free zones shall continue to
be in force in so far as they are not contrary to the provisions of
this legislative decree.
Establishment shall follow the state financial year and shall keep
its accounts in line with the principles of business accounting. The
funds of the Establishment shall be considered as public funds for
the purpose of the application of the provisions of the law of
financing the Establishment depends in particular on:
rents and charges for temporary tenancy and services as defined in
the operation regulations.
appropriations annually set aside by the state for the
from third party.
regards court proceedings the Establishment shall be relieved from
giving in a deposit in all such cases a deposit is required to be
given in by law.
8 There shall be transferred to the Establishment the free zones
created prior to the issue of this legislative decree together with
such constructions existing in such free zones. These constructions,
the land attached thereto, their equipment and their value shall be
determined by an agreement made for this purpose between the
minister of finance and minister of economy and foreign trade.
due observance of the legal provisions in force persons in the
employ of the free zones existing at the date of the coming into
force of this legislative decree may be transferred or seconded to
the Establishment by an order from the board of directors upon an
agreement with the minister of finance and the government service in
which such persons work.
provisions contrary to this legislative decree shall be deemed to be
11 This legislative decree shall be published in the official
Gazette and shall come into force immediately upon its issue.
of the Republic
President of the republic,
to the rules of legislative decree no. 18 of 18.2.1971,
operation regulations of free zones and duty free shops in the
Syrian Arab Republic and its annex containing the operation tariffs
shall be endorsed and shall be applied to all free zones and duty
free shops in the country.
provisions contrary to these regulations shall be repealed.
Decree shall be published and shall be notified to whomsoever
necessary for implementation.
of the Republic
Regulations of Free Zones In Syrian Arab Republic
following expressions shall have the meanings hereby assigned to
Establishment: The public establishment of free zones
board: The Board of directors of the establishment
director: the General director of the establishment
regulations shall apply to all free zones and duty free shops that
are set up or will be set up in the Syrian Arab Republic.
establishment shall have the exclusive power to operate all free
zones and duty free shops and the board may upon a proposal by the
director assign the duty to operate the markets to another
administration upon such conditions as may be set by the board.
establishment shall have a right of priority over all movable and
immovable property of the establishment’s debtors lying within
free zones and duty free shops.
zones and duty free shops shall be governed by the laws and
regulations concerning security, morals, public health and
goods of any description whatsoever, irrespective of their origin or
source, shall be allowed to be admitted into and exited out of free
zones and duty free shops, to the exclusion of the customs zone, and
shall in this case be not subject to foreign trade regulations and
shall not be chargeable to customs duties and taxes.
goods or goods that have become as such by placement for consumption
shall be allowed to be admitted into free zones and duty free shops
shall be governed by the regulations in force in this respect.
lying in the free zone shall be allowed to be admitted into the
customs zone to be placed for local consumption in accordance with
the laws and regulations in force.
an exception to the provisions of article 6 the following goods
shall be prohibited from being admitted into free zones and markets
under pain of seizure without any indemnity, apart from such other
legal measures as are provided for in the laws in force.
of Israeli origin or source, goods prohibited to be imported under
Israel boycott regulations and goods from such states with which
economic dealing is prohibited.
of any description and their derivatives to the exclusion of such
narcotics and derivatives for medicines and pharmaceutical industry.
ammunitions and explosives of any description whatsoever to the
exclusion of hunting arms and their ammunitions.
or inflammable materials as shown on such tables issued and upon
such conditions specified by the establishment satisfy the
requirement of public security, health and safety.
status of the free zone shall not preliminary require within the
boundaries of this zone any measures to be taken by the customs
other than such measures for the detection of goods prohibited from
being admitted under the provisions of article 7 of these
regulations in agreement and cooperation with the establishment
whereupon the establishment shall report to the customs any and all
things in violation of the provisions of the said article the
establishment’s officials or employees may perceive.
shall be admitted into the free zone on the strength of an
application to be submitted by the person concerned or his legal
representative showing the origin, source, nature, type, weight and
value of the goods as well as the type, trademark, numbering and
number of the parcels, and the application shall contain a
declaration by the applicant to the effect that he is cognizant of
the provisions of these regulations and all rules concerning the
operation of free zones and undertakes to observe and comply with
shall be as follows:
inside or outside the country: the customs formality accompanying
the goods shall be attached to the application in question.
outside the country direct into the free zone in the same seaport.
original copy of the shipping manifest shall be attached to the
documents and bills of lading.
the destination of the goods is an inland free zone, apart from the
manifest, the documents and bills of lading referred to in the
preceding clause shall be attached to the customs formality.
a Syrian seaport into a free zone in another Syrian seaport or an
inland free zone admission shall be subject to the same conditions
referred to in the preceding clause.
Establishment shall submit to the customs lists of all materials
admitted into or exited from the free zone within 36 hours.
goods are admitted into or exited from the free zone, they shall be
entered into the admission and exit registers prepared by the
establishment in such approved regular forms which shall contain all
such data of the relevant goods as set out in article 9 and all such
data that may facilitate the identification of the goods.
goods admitted into the free zone shall be deposited in general
roofed warehouses, and where there are no places in such warehouses,
they shall be put under sheds or, otherwise, in open yards, with due
regard as far as possible to the nature of the goods. There shall be
put in open yards in particular:
goods that are impossible to put in sheds or roofed warehouses by
reason of shape, size or weight, and are not affected by atmospheric
if the goods are affected by such conditions, the owners of the
goods or their legal representatives shall take the necessary
precautions for their protection.
Establishment may take, without being bound, at the expense of the
owners of the goods, at its sole discretion, the precautionary
measures in question, and shall, in exercising this right, advise
the persons concerned of the measures that have been taken and the
quantum of expenses due within 48 hours, and the owners of the goods
shall have the right to apply to the Establishment in writing to
lift such precautionary measures at their own responsibility.
goods whose owners apply for their deposit in such a manner
especially when the warehouses and sheds are full provided that the
owners of such goods shall submit a prior declaration in writing to
the effect that such a deposit is at their own responsibility.
shall be deposited in free zones the goods whose particulars and
types are set out in the applications for admission and the owners
of such goods shall be held responsible for the correctness of the
statements that have been submitted and for any fault or fraud that
may be found therein.
& Taking Over
goods shall be handed over to the establishment if and when they are
admitted into such places other than the private tenancy according
to the following procedures there shall be registered in the
presence of the owner of the goods or his legal representative the
parcels that have been admitted according to their types, marks and
numberings, the damaged and suspicious parcels shall be sorted out,
weighed and plumbed, an outturn report shall be made under the
signature of the representative of the establishment and the person
concerned, and there shall be entered in the outturn report any
contradiction between the statements and documents on the one hand
and the goods that have been taken over on the other hand. Goods in
bulk or goods impossible to count shall be admitted as a whole
according to their relevant documents and a reference shall be made
in this respect in the outturn report.
the person concerned declines to sign the outturn report or enters a
reservation as to the facts established therein and fails to
approach the court of urgent affairs within a maximum period of 3
days as from the date of the outturn report, this outturn report
shall have full effect and force as if it had been signed without
and taking over shall be as follows:
of identical units : by number or weight on the basis of the carton.
in bulk or goods impossible to count: according to the relevant
documents without counting or weighing (i.e. as a whole as they have
goods: by number without weight.
Establishment shall not be responsible upon handing and taking over
the goods referred to in clause (2) for weight and number as well as
the goods referred to in clauses (1) and (3) for number even if this
is given in the documents of the goods unless the owner of the goods
asks the Establishment for handing and taking over be made on the
basis of actual weight. In this case the expenses for weighing upon
admission and exit shall be borne by the owner of the goods and the
properties and nature of the goods, the method of packing and other
circumstances that may have an effect of the weight of the goods,
increase or decrease, shall be taken into consideration, whereupon
the Establishment shall not be held responsible for any shortage in
weight as a result of such circumstances.
owner of the goods that have been deposited shall be given at his
own request a nominal warehouse warrant or a receipt to order. Both
shall be extracted from a book with counterfoil in which there shall
name, surname, calling and service address of the depositor.
number and date of admission of the goods into the general
name and nationality of the carrier vessel, if and when necessary,
or any other means of transport.
type of insurance and the sum insured.
number, marks and condition of the parcels and place of depositing.
type of the goods declared, the contents of the parcels and their
depositor of the goods shall be solely held responsible for the
correctness of these particulars.
goods for which a warehouse warrant or a receipt to order is given
shall be deposited in one place. The holder of the warrant or
receipt shall have the right to divide the quantity deposited into
several independent parts and to apply for the warrant or receipt to
be replaced by a number of warrants or receipts equal to the number
of the parts of the goods provided that the necessary measures shall
be taken to distinguish these parts and to prevent their being mixed
if and when necessary.
nominal warehouse warrants shall not be endorseable. The goods for
which nominal warrants have been given shall be assigned before the
establishment according to such instructions as may be issued by the
establishment provided that both the assignor and the assignee or
their respective legal representatives shall appear and the
warehouse warrants of the goods that have been assigned shall be
returned for the issue of new warrants in the name of the new owner
case of the loss of the nominal warehouse warrant another warehouse
warrant in replacement may be given or the goods subject of the
warrant may be handed over to the person in whose name they are
entered against a receipt along a declaration in writing of the loss
of the warrant.
to the registration of the assignment and the issue of a new
warehouse warrant to the assignee the applicant shall pay all fees
chargeable on the goods assigned up to the date of the registration
of the assignment.
depositor shall have the right to endorse the receipt to third party
with no need to obtain the approval of or to notify the
establishment and the endorser’s obligations in respect of the
goods shall devolve on the endorsee.
notifications and notices shall be served by the establishment on
the depositor and the goods that are the property of the depositor
or the ultimate endorsee shall remain as a security for all the
case of the loss of the receipt to order neither a replacement may
be issued nor the goods may be handed over save by decision from the
competent court and the establishment shall be under no
responsibility in consequence.
shall transfer the ownership of the goods and all rights and
obligations of the endorser in respect of the goods shall devolve on
depositing of the goods in the free zone shall not primarily be
limited to a specified period except in such cases that necessitate
the exit of the goods by reason of their very nature or the failure
by their owners to pay such amounts as may be due to the
establishment from them or their violation of the provisions of
establishment shall have the right, as the exigencies of operation
may be require, move, with approval of the persons concerned, the
goods from the place where they are lying to another place as the
establishment may deem appropriate. Anyhow the establishment may
remove, at the expense of the persons concerned, the goods that may
be found deleterious to the neighborhood, public health or to the
constructions of the establishment.
establishment shall arrange for the insurance of the goods deposited
in the warehouses and yards against fire risks and civil liability.
This insurance shall be obligatory.
establishment shall recover from the owners of the goods deposited
the insurance premiums appropriate to the value of the goods
deposited and duration of depositing.
establishment shall take such care as may be necessary to safeguard
the goods deposited in the free zone and shall take such measures
necessary for their maintenance. If it appears that the goods are
susceptible to destruction or that the damage to the goods or to
other goods by reason of the damage to the goods in question has
become grave at the discretion of the establishment, then the
establishment shall have the right to serve a notice in writing by
registered mail to the person concerned to remove the goods out of
the free zone within such a time limit as the establishment may set
as the case may be, and in default the establishment shall have the
right in agreement with the administration of customs to sell or to
destroy such goods.
establishment may take such measures as may be necessary to protect
the goods, to re-pack the parcels that have suffered damage and
change or repair the covers at the expense of the owner of the goods
if and when the establishment may so deem necessary with the
approval of the person concerned, and the establishment shall have
the right to carry out such works spontaneously at the expense of
the persons concerned if and when the establishment may so deem
waste of the goods as a result of probing, packing and collection by
reason of loose parcels shall be handed over to the owners provided
that they shall pay for their collection and sweeping and for the
bags and containers packed therein if and when necessary.
establishment shall dispose as the establishment may wish in its own
interest with the waste of the goods that have not been identified.
establishment shall not be responsible for blemish, damage or defect
by reason of the nature of the goods, the form of their packing,
their unpacking, and the ambient temperature or humidity throughout
the period of depositing. Further the establishment shall not be
responsible for damage by reason of strikes, commotion, riots, war
operations and different sorts of force major as well as by reason
of harmful animals the establishment have to fight.
establishment shall be held responsible for damage to the goods if
it is established that such damage is a result of any act or
negligence on the part of its officials, employees or workers, or
the bad condition of its warehouses or their being not suitable for
storage, on the strength of a decision issued by the competent court
of law. The board may reach an amicable settlement to indemnify for
the damage without recourse of the court of law.
shall be allowed to be set up and to be carried out freely in the
free zones with a prior license from the establishment different
industries, plants and all converting processes. They are as an
example not by way of limitation division, sorting, forming,
processing, packing, packaging, mixing, purifying, cleaning,
lubricating, distilling, acidifying, hammering, breaking, crushing,
marking, placing and changing trademarks.
above operations shall be primarily carried out in places of special
operations and the establishment may allow some of such operations
be carried out in its general warehouses, yards or in such places
prepared for this purpose if and when the establishment finds it
board shall have the right to endorse and set fees for such services
that have not been envisaged in the tariff.
board shall have the right to increase or to decrease the fees as
set out in the tariff annexed to these regulations at a rate not
over than 50%. The new fees shall apply to all beneficiaries.
decisions adopted by the board under the provisions of (a) and (b)
shall be published in the official Gazette.
establishment shall collect the following fees as set in the tariff
of free zones annexed to these regulations:
and handling fees.
for other services and for use of equipment and plant.
establishment shall carry out porterage and handling operations and
shall collect from the owner of the goods the fee on the basis of
weight in package or on the basis of actual weight as the case may
regards goods in bulk that are impossible to count, the fee shall be
collected on the basis of the weight as given in the documents
(manifest, customs declaration, or shipping document) whether
porterage by hand labor by vehicles and equipment in the following
1: Transport of the goods from the quay or the entrance of the free
zone to the allocated place inside the zone and their stowing and
stacking according to their types and marks.
2: Transport of the goods from the warehouses or yards of the free
zone to the quay or the inspection room and their loading after
survey for transport outside the free zone.
3: Taking over the goods alongside the means of transport inside the
free zone, their depositing at the allocated place in the warehouses
or yards inside the free zone and their stowing and stacking
according to their types and marks.
4: Transport of the goods from the warehouses or yards in the free
zone and their delivery alongside on board the means of transport
inside the free zone.
5: Unloading the goods from a means of land transport and onloading
on board another means of land transport.
establishment shall collect from the owner of the goods fees for all
porterage operations that are not within the definition in the
previous article. They cover collecting, re-packing, changing and
repair covers, weighing, sorting, handling, and such other services
relating to porterage as defined in the tariff.
the owner of the goods applies for porterage or another service and
then he withdraws his application in whole or in part, the
establishment shall have the right, if the necessary measures have
already been taken, (according to the circumstances), to collect a
porterage fee at a maximum rate or 50% for the entire quantity
handled by labour.
establishment shall collect storage fee for such goods deposited in
such warehouses inside the free zone other than the warehouses
occupied by tenants throughout the whole period of their stay in the
warehouses without any period of exemption.
storage fee shall be calculated on the basis of the gross weight,
number or volume as set in the tariff.
establishment shall collect a tenancy fee for such private places as
defined in the contracts made with the persons concerned. If and
when tenancy fee is chargeable, the establishment shall not collect
storage fee for such goods deposited in the private places of the
establishment shall collect a duty at a flat rate in respect of such
goods admitted into the free zone.
establishment shall collect an assignment fee each time the goods,
contracts of commercial or industrial tenancy, or vehicles and means
of transport are assigned.
establishment shall collect from the persons concerned fees for the
different materials, services, certificates or copies of documents
the establishments provides at request and charges for the use of
machines and equipment.
fees shall be chargeable for the whole period of the stay of the
goods in the free zone up to the date of their actual exit.
board shall fix, upon a proposal from the director, the dates for
the payment of the fees and advances to be paid by the persons
concerned on account of the fees.
establishment shall have the right, if there is a delay on the part
of the persons concerned for more than 6 months in paying such fees,
to sell the goods by public auction following the service of a
notice in writing and the lapse of a period of 15 days as from the
date on which the persons concerned have been served the said
regards goods that have a small value, the establishment shall have
the right, if and when the fees are not paid on the dates on which
they become due and payable, to sell such goods by public auction
after the persons concerned are served a notice and after the lapse
of the time limit referred to above. Sale shall be effected on the
basis of the customs status in the free zone.
a dispute arises between the establishment and the persons concerned
over the question of fees and charges, the persons concerned shall
pay the amount claimed by the establishment and shall then have the
right to appeal administratively to the competent authority in the
establishment and to have recourse, if and when necessary, to the
competent court of law.
is a condition precedent to the refunds of the difference in fees
and charges erroneously collected that the difference shall be
greater than five Syrian pounds and that an application in writing
shall be filed within a maximum period of 6 months as from the date
establishment shall draft the forms of tenancy contracts and shall
define the conditions of such tenancy. These contracts shall be
considered temporary tenancy contracts and shall not be governed by
the provisions of the law of rent.
maximum period of the temporary tenancy contract shall be:
year in respect of open places intended to be occupied for storage
purposes without erecting buildings or installing industrial
years in respect of open places intended to be occupied for the
purpose of erecting buildings for storage.
years in respect of open places intended to be occupied for the
purpose of erecting buildings for converting industries and
ownership of the buildings and appurtenances shall devolve on to the
establishment after the expiry of the period as specified in the
contracts shall be renewed, after the expiry of their period, from
year to year for a rent to be paid in advance and to be fixed by
mutual agreement unless the person concerned expresses his intention
in writing not to renew the contract three months before the expiry
of the term.
the establishment finds that the person concerned has suspended his
activity for two consecutive years of five years at intermittent
intervals without a lawful excuse, the establishment shall have the
right, with the approval of the board, to determine the contract or
to refuse the renewal of the contract, and this shall be attended by
all consequences attending the expiry of the initial period of the
industrial operation in free zones shall be mainly oriented for
export. There may be allowed with the approval of the ministry of
economy and foreign trade, upon a proposal by the establishment, the
admission of a percentage of the exports of such industries into the
Syrian markets by way of exclusion from the foreign trade laws and
regulations and from the restrictions imposed on import except such
restrictions relating to the limitation or restriction of import to
a public sector body. For this portion of production there shall be
granted automatic import licenses with no need to transfer the value
abroad and this portion of production shall be exempt from duties
pro rata the local materials incorporated in manufacture.
shall be observed that the industries set up in free zones shall not
lead to the imitation or competition of such industries in the
country except in such where they enter into a partnership with
local industries .priority shall be given to the following
industries with due regard to the industrial strategy and the
requirements of the development plans in the Syrian Arab Republic:
for which local raw materials or locally manufactured components are
that integrate with locally existing industries.
industries that are not locally existing and depend on modern
that meet the need of local consumption and help to dispense with
import from abroad.
that help to employ a greater number of hand labour.
prospective tenant shall submit an application to the establishment
in which he shall specify the purpose of tenancy, the types of goods
intended to be stored or converted , the places intended to be
occupied, and the buildings or the industrial enterprises and
equipment he wishes to erect or set up thereon provided that the
prospective tenant shall be residing in the city or town in which
the free zone is situate, or shall have therein a service address or
for tenancy submitted by foreign natural or juristic persons shall
not be allowed unless such persons have established a head office or
a branch in the Syrian Arab Republic or unless such persons have a
representative who is a Syrian Arab Citizen.
this latter case the application shall be accompanied by a copy of
the contract made between the two parties provided that this
contract shall, anyhow, be registered in accordance with the
area of the land intended to be occupied by the prospective tenant
shall not be more than 10% of the area allocated for private tenancy
inside the free zone.
contracts made between the two parties shall specify the mode and
dates of payment of the tenancy fee. There shall be collected from
the prospective tenant a tenancy fee for at least one year in
advance. As regards contracts for less than one year, the fee shall
be collected in advance for the whole term of the contract.
director shall determine the applications submitted for tenancy of
land for storage and the board shall determine, upon a proposal by
the director, the applications submitted for tenancy of land to set
up industrial enterprises.
and industrial enterprises shall be set up on the land tenanted as
indicated on the drawing with all roads and means for protection
from fire risks upon an approval by the establishment. There shall
be observed the technical procedures as to storage, converting and
manufacturing and any modification in these drawings shall be
subject to an approval from the establishment.
tenants of private places shall observe and comply with the rules
for protection from fire and explosion. Insurance shall cover civil
liability to such an extent at the discretion of the establishment
and shall be made with accredited insurance companies. This
insurance shall be obligatory at the expense of the tenants.
goods shall be forwarded to the private places in the free zone at
the request of the tenants provided that these goods shall be for
the tenants or that these goods are regularly assigned to them.
Further these goods shall be relevant to the purposes for which the
place has been allocated in the tenancy contract and shall be
entered in the registers of the places tenanted. Goods shall be
chargeable in case of the violation of any of the conditions
referred to herein to a double storage fee.
the tenants of the private places violate the provisions of these
regulations or the terms of the tenancy contracts made with them ,
the establishment shall address a notice to them to remedy the
violation within such a time limit as specified in the notice. In
default to remedy the violation within the time limit as set in the
notice, the establishment shall have the right , with the approval
of the board , to rescind the contracts and to specify a reasonable
period for eviction. In this case the buildings shall become the
property of the establishment with no indemnity. If the persons
concerned fail to remove their goods, machines and equipment within
the stated time limit, the establishment shall have the right to do
so at their own expense and the goods, machines and equipment shall
be stored at their own expense in the general warehouses and yards.
tenants of private places shall be responsible for all damage caused
by them, their representatives or their subordinates, or by reason
of their enterprises or goods to other buildings or enterprises or
the goods lying therein inside and outside the free zone, and their
observance of the safety rules imposed on them shall not release
them from liability.
tenants of private places shall keep and maintain registers to enter
the incoming and outgoing goods. These registers shall be maintained
in such forms as specified by the establishment.
tenants of private places shall keep and maintain records of the
names and number of their employees and workers and the date of
their employment in the free zone and lists thereof shall be sent
direct to the establishment. All amendments to the particular of the
records, increase or decrease, shall be notified to the
establishment. The tenants shall hand each of their employees and
workers a sign in such a uniform model to be specified by the
establishment to carry the name of the employer and the number of
the warehouse or the industrial enterprise and to be put on the arm
when on duty inside the free zone. These signs shall be left with
the establishment’s watchmen at the gates of the free zone when
tenants of private places shall be responsible for the behavior of
their employees and workers. The establishment shall have the right
to prevent any of such employees and workers from entering into the
free zone if and when such person violates the regulations of work
establishment may allow the tenants of private places to assign to
third party the right of tenancy of the land they occupy and the
enterprises erected on such land within the following conditions:
shall be made before the competent official of the establishment.
new contract shall be made between the assignee and the
establishment and shall be subject to all terms of the former
contract with the assignor.
assignment fee as set in the tariff of fees shall be paid.
tenants of private places who carry on an industrial activity in the
free zone shall keep and maintain special records of the industrial
machines used in such places to enter their admission and exit, with
certain records assigned for machine from the domestic market, and
there shall be entered therein such particulars as may be necessary
such description, number, mark, origin, value, destination, type and
such other useful data.
goods that have been admitted into the private places and have
undergone converting processes shall be entered in special records
to give all necessary clarifications of the converting, mixing and
manufacturing processes and to show the type of the materials that
have been used in the new production, their quantities, their origin
and all such relevant data, and shall be cleared in such other
records and registers referred to in these regulations. The products
that have been converted or manufactured in the free zone shall
carry the expression “free zone in …” in a product the board
resolves to be relieved from this expression.
establishment may establish free markets inside the free zones, in
the main cities in the country, in civil airports and in seaports.
duty free shop shall consist of commercial stores for the wholesale
or retailsale of foreign and national goods to passengers in transit
and international passengers for re-export, diplomatic and consular
corps, and the like, and the general rules of free zones shall apply
to these duty free shops in with the nature of their composition and
the purpose for which they have been established.
establishment shall specify the types of goods, the sale conditions
and the means of control in agreement with the administration of
customs and the administration of the airport as the case may be
provided that sale shall be in such acceptable foreign currency.
operations allowed in the free markets shall be limited to the
sorting, packing, division and grading operations and such
operations as may be necessary for preservation.
body assigned the duty by the establishment to operate the duty free
shop shall be responsible towards the establishment for all
violations and faults committed direct by the said body, its agents
or its subordinates.
shall be exited from the free zone upon an application in writing by
the person concerned to the establishment and the application shall
show the type of the goods, their origin, and the number and types
the goods have undergone any of the converting or manufacturing
operations referred to in these regulations, all clarifications of
the operation in question shall be given, further, in case of mixing
or new production, the types and sources of the parcels mixed shall
be given, so that the customs service would be in a good position to
exercise control and to compute the customs duties that may be
chargeable on such materials.
exiting the goods the following shall be observed:
fees due to the establishment for such goods shall be paid and the
relevant customs formalities shall be channeled.
nominal warehouse warrants or the receipts to order referred to in
these regulations shall be returned.
delivery orders and such other documents shall be produced, if and
when necessary, according to such instructions issued by the
goods shall be removed to the inspection room for survey and customs
formalities. This room shall be set up at the expense of the
establishment at such place to be agreed on with the administration
of customs. This room shall be under the joint watchman service of
both the establishment and the customs.
owner of the goods or his representative shall sign a note in
acknowledgement of receipt.
and when a parcel is opened for customs inspection or at the request
of the person concerned, the soundness of the parcels shall be
verified before opening, so that if it appears that a parcel is
suspicious a customs report shall be made in cooperation with the
establishment. If no customs report is made, this parcel that has
been opened is considered to be intact. In this case the
establishment shall not be responsible for any discrepancy that may
transpire in the contents of the parcels when opened.
enterprises may be licensed to be established within free zones to
exercise functions in financing different commercial and industrial
activities and operations and in rendering different bank services
as may be required for the activities of the operators in these
shall be specified by an order from the board the tenancy fee and
board shall formulate the provisions concerning the operation of
banks, especially the provisions:
regulate the granting of loan
specify the capital and reserve of the bank
specify the bank operations allowed
specify such date and information to be submitted to the
establishment to verify the sound standing and activity of the bank
specify the role of the establishment in exercising control and
supervision of the bank operations
regulate the liquidation of the bank
specify the securities to safeguard the rights of the customers of
the bank and the provisions for the regulation of the operation of
specify the violations, fines and administrative penalties.
formulating such provisions there shall be observed that they are
consistent with the purpose of creating free zones and the nature of
operation without due observance of the provisions of laws governing
bank operations in the country.
& Miscellaneous Provisions
goods shall not be allowed to be consumed in the free zones for
personal use before payment of such customs duties and other taxes
and duties chargeable.
residence in free zones shall not be allowed save by a special
permission from the establishment as may be required for running the
national and foreign vessels may arrange for the supply of all
marine equipment as they may require from the free zone.
and foreign vessels, load over 150 net marine tons, may arrange for
the supply of foodstuffs, cigarettes, drinks, oil, and all materials
as necessary for their machines from the free zone. The
establishment shall have the right suspend the supply operation if
and when fraud and abuse are established.
person who enters into the free zone, or deals with it, or uses its
constructions and facilities shall observe and comply with these
person shall be allowed to enter into the free zone unless he holds
a special permit from the director of the free zone for this purpose
to the exclusion of the customs guards and the competent customs
officials if and when necessary for the exigencies of work.
hours and procedures to enter into and exit from the free zone shall
be specified by the director of the establishment