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SEZ Act 16 of 2014.pdf
Government Gazette, February 9, 2016
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announcement

R.6 Notice of 2016

Adopted by the President of the Republic of South Africa

Entry into force of the 2014 SEZ Act (Decree No. 16 of 2014)

  Under Chapter 42 of the SEZ Act 2014 (Decree No. 16 of 2014), I hereby make it clear that the decree will come into effect on the date of publication of the notice.

  Signed and agreed upon by my hand in Pretoria on January 27, 2016, and the seal of the Republic of South Africa.


president
President's Order - Cabinet


Cabinet minister

Ministry of Trade and Industry
According to Chapter 41 of the 2014 Special Economic Zones Act
(Law No. 16 of 2014)
 
1. In view of the authority vested in me under Chapter 41 of the SEZ Act 2014 (Act No. 16 of 2014), I am Rob Davies, Minister of Trade and Industry, here -
  (a) to bring the statute into Table A of this plan;
  (b) Make it clear that the law will come into force on the date of the start of the implementation of the Special Economic Zones Act 2014 (Act No. 16 of 2014).

Rob Davies, MP
Minister of Trade and Industry
Date: 11/12/15
Schedule A
According to the 2014 special economic zone laws and regulations
table of Contents

1. Annotation ............................................... ................................................. ............................ 4
2. Funding for SEZ Funds ......................................... ......................................... 5
3. Special Economic Zone Fund Administration ..................................................... ......................................... 5
4. Funding from Special Economic Zone Fund ......................................... ................................. 5
5. Funds from SEZ Fund Application Requirements ..................................... .........................8
6. Policy support for operators operating in special economic zones ..................................... .......................9
7. Policy Support for Investment Attraction in Special Economic Zones ........................................ ............................. 10
8. Application designated as a special economic zone ..................................................... .............................................. 11
9. Types of services and commercial trade that may be stationed in the special economic zones ..................................... ......... 12
10. Application for a Business or Service Staging in a Special Economic Zone ...................................................... ........................... 13
11. Special Economic Zones Governance and Management ..................................................... ........................................... 14
12. SEZ operator's permit .......................................... ............................................ 15
13. Advisory Committee's reporting obligations ..................................................... ............................................
14. Transitional Arrangements ............................................. ................................................. .............. 17
15. Compliance with Feasibility Study with Guidance Outline ..................... ......................... 19
16. Feasibility Study ............................................. ................................................. .............. 19


Table 1: Feasibility based on section 23 (3) (b) of the Act

2. Special Economic Zone funds source of funds
The SEZ funds include funds voted by the parliament, which are part of departmental allocations and investment returns.

3. SEZ fund management
(1) SEZ funds must be managed and controlled in accordance with the Public Finance Administration Act.
(2) The Minister shall establish a jury, chaired by the Director-General, to consider the application for funds from the Fund and make recommendations to the Minister.
(3) Any funds in the SEZ funds need not be used immediately and can be invested in accordance with investment policies approved by the Minister. The investment policies approved by the Minister are in compliance with the requirements of the Public Finance Management Act and can be withdrawn if necessary.
 
4. Allocation of funds from special economic zones funds
(1) All funds allotted from the fund must be used to achieve the aims of chapter 2 of the ordinance and the use of special economic zones in chapter 4 of the ordinance.
(2) Funds will be allocated for:
   (a) Feasibility study
   (b) Start-up costs
   (c) Preparatory site
   (d) Infrastructure construction
   (e) Business development and performance improvement
   (f) Business development
(g) Skills development
(h) Measures to support industrialization, economic growth and the realization of the special economic zones (CCPs, Chapters 5 and 6) as identified in the SEZs policies and strategies.
 (3) Feasibility study
In section 23 (1) of the Act, applicants can apply for funds for feasibility studies to support the establishment, planning and development of SEZs.
 (4) start-up costs
The applicant in section 23 (1) of the Act or the licensee in section 23 (6) of the Act may use the Fund application monies as a one-off start-up cost associated with the establishment of a special economic zone, including accountant fees, legal fees, registration Fees, marketing costs and staff training.
 (5) preparation site
Applicants can apply for fund funds for the preparation of venues, so that enterprises stationed in the special economic zones.
 (6) Infrastructure construction
Applicants can apply for fund funds for infrastructure construction in the SEZs.
 (7) Business Development and Performance Improvement
(A) An applicant may apply for fund applications for commercial development and performance improvement in a SEZ, including the following associated expenditures:
(I) Improve the competitiveness of suppliers and supply chains;
(Ii) time measures to reduce operating costs and breakeven incomes;
(Iii) improved operational models that reduce utility and equipment maintenance costs; and
(IV) Environmental Impact Improvement Initiatives, including: Green Building Compliance, Emission Control, Water Conservation, Waste Management and Control, and Waste Reduction.
(8) Skill development
Applicants can apply for fund applications for skills development programs and programs.
(9) Commercial development
Applicants can apply for funds to fund SMEs business development services.
(10) Financing options and financing agreements
(a) Funds may be granted by:
  (I) fund, conditional;
  (Ⅱ) Conditional matching funds, foundations and applicants will provide part of the funds;
  (Aa) an amount equal to the foundation's contribution; or
  (Bb) the remaining portion of the total application fund.
(b) Successful applicants for funding must conclude a financing agreement with the Ministry of Trade and Industry to control the terms and conditions of the funds they have received, including:
   (I) the use of funds already obtained;
   (Ii) The way in which funds are used will be subject to regulatory controls to ensure consistency with the terms and conditions of access to funds and their use;
   (Iii) Remedies for breaches of financing agreements will include the return of funds already made to the applicant, legal proceedings against the applicant to recover the funds already obtained.

(11) The Director-General must monitor the realization and use of funds from the Fund and report to the Minister on the use of the funds allocated for the annual fund allotments.

5 from the SEZ funds application requirements
  (1) From time to time, when applying for funds from the Fund, the Minister must follow the published procedures.
  (2) The applicant must submit an application to the Director General:
(a) the street address of the department, or
(b) Departmental mailing address that is sent by registered mail.

  (3) The applicant must submit the following information and documents:
(a) the applicant's name, address and contact information;
(b) a complete and detailed justification based on the application;
(c) Explain the motivation and importance of the applicant seeking funding
(d) detailed project business plan and budget; and
(e) Feasibility study presented in Table 1 of the plan.

  (4) After the adjudication board has received the application, it will:
(a) provide the applicant with a written receipt of receipt of the application within 3 days of receipt of the application;
(b) require the applicant to submit further written documents or information relevant to the application within 7 days of receipt of the application; and
(c) Investigate or examine the applicant where necessary.

  (5) The Jury must consider the application and advise the Minister on whether or not to approve the application.
  (6) After considering the recommendations of the judicial committee, the minister:
(a) will agree to grant a conditional application; and
(b) The applicant must be notified in writing of the decision.
6. Operators in the special economic zones operating policy support
  (1) Operators operating in the special economic zones will be eligible for the following policy support:
(a) Pursuant to the Value-Added Tax Act 1991 (Act No. 89 of 1991), the Customs and Excise Duty Act 1964 (Act No. 91 of 1964) and the Customs Tariff Act of 2014 (Act No. 30 of 2014) Tax relief applies to enterprises in the SEZs; or
(b) Other support strategies apply to qualified operators through multiple resolutions.
  (2) Operators must comply with the legislation and other relevant provisions of the legislation, including: Income Tax Act No. 58 of 1962, the Employment Tax Incentive Act of Decree No. 26 of 2013, Decree No. 89 of 1991 The VAT Act, the Customs and Excise Act Act No. 91 of 1964 and the Tariff Act of 30 of 2014.

7. Special Economic Zone in the policy of investment support
  (1) Enterprises stationed in the special economic zones may be eligible for the following policy support:
(a) The Income Tax Act and the tax incentives under the Employment Tax Incentive Act 2013
(b) Pursuant to the Value-Added Tax Act 1991 (Act No. 89 of 1991), the Customs and Excise Duty Act 1964 (Act No. 91 of 1964) and the Customs Tariff Act of 2014 (Act No. 30 of 2014) Tax relief applies to enterprises in the SEZs.
(c) Other support strategies apply to regulated businesses through multiple resolutions.

8. Designated as a special economic zone application
  (1) National governments, provincial governments, municipalities, public entities and the public sector may apply to the Minister for designating the designated area as a special economic zone.
  (2) The designated area must be applied in writing to be a SEZ and must comply with the requirements of sections 23 (2), 23 (3) of the Act. In addition, the applicant must indicate:
(a) Manufacturing activities or international trade services to which the SEZ intends to participate;
(b) whether the SEZs plan to target local or export markets; and
(c) Where do you plan to locate the SEZs, or anywhere in the Republic of South Africa, at the port of entry or the area where tariffs are controlled?
  (3) When preparing a feasibility study in accordance with section 23 (3) (b) of the Act, the applicant must address the issue in Table 1 of the Plan.
  (4) The applicant must submit an application to the chairman of the advisory board:
(a) the street address at the headquarters of the advisory committee, or
(b) Address of the Chairman of the Advisory Committee, which is sent by registered mail.
  (5) Advisory Board:
(a) The applicant must be provided with a written receipt of receipt of the application within 5 days of receipt of the application;
(b) The application must be evaluated to determine whether the application is completed and the applicant must be notified in writing of outstanding information and documents within 30 days of receipt of the application;
(c) When necessary, the applicant may be required to obtain further written information or documents relevant to the application;
(d) when necessary, any matter relating to the application may be investigated under the Act; and
(e) If necessary, the applicant or any other Contracting Party related to the application may be examined or verified under the Act.
  (6) Within five months of receipt of the completed application, the advisory board must consider the application and advise the Minister on the necessity of designating the area as a SEZ.
  (7) The Minister must decide whether or not to designate the area as a special economic zone within two months upon receipt of the advice of the advisory board.
  (8) The time limits of the above rules (6) and (7) may be extended if justified.
  (9) If the Minister decides not to grant an application for a designated area as a special economic zone, the Minister must:
(a) notify the applicant in writing;