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AN ACT TO AMEND THE PUBLIC AUTHORITIES LAW TO CREATE THE LIBERIA INDUSTRIAL FREE ZONE AUTHORITY It is enacted by the Senate and House of Representatives of the Republic of Liberia, in Legislature Assembled: Section 1. The Public Authorities Law is hereby amended by adding thereto a new chapter to be Chapter 5, to read as follows: CHAPTER 5. LIBERIA INDUSTRIAL FREE ZONE AUTHORITY 5.1. Corporation created 5.2 Purpose and Objective 5.3. Customs Procedures 5.4. Powers 5.5. Capitalization 5.6. Board of Directors 5.7. Management 5.8. Finances 5.9. Borrowing and issuing of notes 5.10. Admission to Facilities in the Free Zone 5.11. Fiscal Provision 5.12. Incentives 5.13. How Chapter may be cited 5.1. Authority created. Pursuant to Chapter 1 of the Public Authorities Law, there is hereby created a public authority constituting a body politic and corporate to be known as the Liberia Industrial Free Zone Authority. As used in this chapter, the term “Authority” means the authority hereby created. The Liberia Industrial Free Zone Authority shall include sites adjacent to he Free Port of Monrovia and any other area that may be designated by Government in the future. 5.2. Purpose and Objective. The Authority is hereby established and created in specified coastal areas to induce foreign investment with a view to ensuring the promotion of exports, increased employment and the improvement of industrial technology thereby contributing to the nation’s economic development. To carry out its functions, the Authority is also given the greatest degree of industrial and financial autonomy. It shall identify, investigate and promote the establishment of export oriental industries, which will promote Government’s overall strategy of national development. To have rent sites or prebuilt standard factory buildings for manufacturing or assembling semi-finished or finished products basically intended for export. The Authority shall provide utilities (electricity, industrial and portable water, sewage disposal, telephones for the sites.) It shall also organize common services such as, transportation, storage, packaging, banking insurance, postal services and security. In addition to these functions, the Authority shall also perform other functions such as, (a) Administration of Free Zone Regulation; (b) Planning, construction and Management of all necessary installation and facilities within the free zone and (c) Management of revenue derives from free zone operation. 5.3. Customs Procedures. The Industrial Free Zone Area will be customs free. Customs control will be withdrawn to the fenced-around boundaries of the entire are of the Industrial Free Zone. 5.4. Powers. In addition to the powers specified in Section 5 of the Public Authorities Law, the authority is authorized to exercise the following powers: (a) To enter into, perform, and modify contracts, leases, agreements, or other transactions, on such terms as may be deemed appropriate with businesses, financial institutions, or with any person, partnership, association, corporation, organization, or other business entities. (b) To acquire land located within designated areas for the establishment of Industrial Free Zones. (c) To contract the services of designers, builders and engineers to prepare the sites and erect the standard factory buildings as well as central facilities. (d) To conclude tenancy agreements with industrial establishments for use of the sites/buildings within the Industrial Free Zones. (e) To design and implement statistical control of movements of raw materials and goods into and out of the Free Zone areas. (f) To design customs procedures in consultation with the Minister of Finance, in respect of: i. Raw materials entering the Free Zone from the Liberian Customs territory; ii. Finished goods leaving the Free Zone for sale in Liberia; iii. Movements of goods between the Free Zone and Ports; iv. Checking movement of workers into and out of the Free Zone Area (g) To otherwise take any and all action determined by the Directors to be necessary or desirable in working, carrying out, servicing, liquidation, or otherwise dealing with or realizing any transaction or operation authorized under this Act. 5.5. Capitalization The President of Liberia is duly authorized to subscribe on behalf of the Government of Liberia not less than 75% of the share capital. A foreign or local non-government share holding to the authority’s capital shall be limited to not more than 25 percent. 5.6. Board of Directors. The Authority shall have a Board, an Executive Officer (General Manager), other Senior Officers, and an adequate Staff formulation of policies and the direction of the management of the authority shall be vested in the Board of Directors. The Board of Directors shall consist of: 1. Minister of Commerce, Industry & Transportation Non Ex-officio members of the Board of Directors shall have a tenure of three years. 5.7. Management (a) The operational responsibilities for implementing the program and policies of the authority shall be vested in a Gernal Manager who shall be appointed by the President upon recommendation by the Board. The General Manager shall be assisted by Managers including but not limited to: a. Manager for Operation (b) The General Manger shall manage the operations for the Authority and execute its functions, and shall employ for this purpose sufficient staff, furnish the necessary budget and other facilities to be defined by him and approved by the Board. The General Manager shall devote full time to the affairs of the Authority. 5.8. Finance Site preparation and central facilities development shall be the responsibility of the Authority; funds for such purposes will be provided to the Authority from its own share capital complimented by Government and other loans. 5.9. Borrowing and Issuance of Notes Upon approval and/or acceptance by Government the Authority amy issue to Government its notes, debentures, bonds, or other obligations in an amount sufficient to enable the Authority to carry out functions under this Chapter or any other provision of law, such obligations to mature as agreed with the Minister of Finance. Each such obligation shall bear interest at an agreed rate taking into consideration the current rate on outstanding marketable obligations of the Republic of Liberia. The Minister of Finance is authorized to purchase the obligations of the Authority to be issued hereunder and for such purposes is authorized to use Government funds not otherwise appropriated. 5.10. Admission to Facilities int eh Free Zones The Board of Directors shall approve admission of applicants to sites/building in the Industrial Free Zones upon the recommendation fo the General Manager, bearing in mind these basic criteria: (a) Export potential 5.11. Fiscal Provision. Within three months of the close of each fiscal year the Authority shall make a report to the President of the Republic of Liberia, which shall contain financial statements for the fiscal year, including a balance sheet, a statement of income and expenses, and an analysis of accumulated net income. The accumulated net income shall be determined after provision for reasonable reserves for bad debts and investments outstanding. Such statements shall be prepared from the financial record of the Authority, which shall be maintained and audited by the General Auditing Office in accordance with generally accepted accounting principles applicable to commercial corporate transactions. 5.12. Incentives. Industries admitted to the Industrial Free Zones are: (a) exempt from import duties indefinitely; 5.13. How Chapter May be cited. This Chapter may be cited as “Liberia Industrial Free Zone Authority Act.” Section 2. This Act shall take effect immediately upon publication. Any law to the contrary notwithstanding. Approved July 9, 1975. |
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