Export Processing Zones (Licensing) Regulations, 2003

1. These Regulations may be cited as the Export Processing Zones Title (Licensing) Regulations, 2003.

2. In these Regulations unless the context otherwise requires-- Interpretation " Authority " means the Zambia Export Processing Zones Authority; • "Board" means the Zambia Export Processing Zones Authority Board; "developer" means a person who holds a permit issued pursuant to section seventeen of the Act; " investor" means the holder of an export processing licence issued pursuant to section twenty of the Act; " licence " means an export processing licence granted pursuant to section twenty of the Act; and "permit " means a permit granted to a developer pursuant to section twenty of theAct.

3. These Regulations shall apply to Export Processing Zones in Application the following sectors: ( a) agriculture: (b) agro-processing; and ( c ) manufacturing.

4. ( 1) An application for a developer's pennit shall be in Form EPZ I set out in the Schedule to these Regulations. (2) An application for a permit shall be accompanied by a non­ refundable application fee of seven thousand five hundred fee units and the following documents: Application for permit Ccpies of this Starutory Instrument can be obtainedfro,n the Govemment Printer. P. 0. Box 30136, JOJO/ Lusaka. PriceK5000each 104 Statutory Jnstrwnents 11th April, 2003 ( a) a certified copy of the articles of association; (b) a certified copy of the certificate of incorporation; ( c) a certified copy of the certificate of share capital; ( d) a certified copy of the applicant company's certificate of minimum share capital; (e)a copy of the latest annual report and audited financial statP.ments if the applicant company has been in operation for more than one year; (f) a copy of projected financial statements, if the applicant company has been recently incorporated; ( g) a detailed business plan; (h) a certified photocopy of the passport or National Registration Card showing the nationality and place and date of birth of the person named as a dir,e'ctor or Secretary of the company in the application for incorporation; and ( i) a plan of the proposed facilities drawn to scale showing­ (i) the full extent of the area to be developed as an export processing zone; (ii) any servitude or building restrictions; and (iii) the proposed or existing layout of the facilities. Application forllcence

5. (1) An application for a licence to invest in an export processing zone shall be in Form EPZ 2 set out in the Schedule to these Regulations. (2) An application for a licence shall be accompanied by a non­ refundable application fee of seven thousand five hundred fee units and the following documents: ( a) memorandum and articles of association of the applicant company; • (b) a copy of the certificate of incorporation; ( c) a certified copy of the certificate of share capital certificate; ( d) a copy of the applicant company's certificate of minimum share capital; (e) a copy of the latest annual report and audited financial statements if the applicant company has been in operation for more than one year; (f) a copy of projected financial statements, if the applicant company is recently incorporated; ( g) a copy of a detailed business plan; (h) a certified copy of the passport or National Registration Card showing the nationality and the place an�llate of birth of the person named as Director or secretary jn the application for incorporation ;' 11th April, 2003 Statutory Instruments

6. The Board may require, from a person who has lodged an application for a permit or a licence under these Regulations, such further information as the Board may consider necessary.

7. (1) The Authority shall, within thirty days of receiving an application for a pennit or licence, consider the application. (2) Where the Authority is satisfied that the applicant has complied with the requirements of these Regulations, the Authority shall approve the application and may refuse to approve .the application where the Authority is not so satisfied. (3) The Authority shall, immediately after the expiration of the period referred to in subregulation ( 1) inform the applicant of its decision. ( 4) Where the Authority refuses to gnmt a permit or licence, the Authority shall inform the applicant accordingly giving reasons for the refusal. (5) The Authority shall, where an application is approved.by the Authority issue the applicant with- ( a) a i:,ermit in Form EPZ 3 set out in the Schedule to these Regulations; or (b) a licence in Form EPZ 4 set out in the Schedule to these Regulations.

8. <1) A permit or licence shall, unless it is revoked or suspended, be valid for a period of ten years from the date of issue. (2) An application for the renewal of a permit or a licence shall be made to the Authority six months prior to the expiration of a permit or licence issued under these Regulations. (3) A non-refundable fee ofseven thousand five hundred fee units shall be payable on the renewal of a permit or a licence. ( 4) A permit or licence shall lapse if not renewed in accordance with the provisions of these Regulations. ( S) A permit or licence may be issued subject to such1erms and . conditions as theAuthority may detemline . (6) A permit or licence renewed under this regulation shall be valid for a period not exceeding five years. . 9. (1) An investor-shall pay to the A:uthority an annual liCISlce fee of thirty-six thousand one hundred and twelve fee units for each yea'f duri,Jlg which the licence is valli!. 105 Rcqimement offmtbcr inf"'1lllllWll !)jonMi4b1n of applica!ion Duration of ii:;,or """1""1 fees (2) A developer shall-pay to the Authority an annualpennit fee of.: , : ., seventy-two thousand two hundred and twenty-lhreefee units for each year dmjng which the permit remains valid.

10. (1) A developer shall begin to implement the project tlescribed in thepennit within one year of obtaining the permit (2) Subject to section. twenty-four1an investor si'iall begin to .. �plement .the investment described in the licence Within eneyearof obtairung the licence. • ;; ' .> " , • I 106 Statutory Instruments llthApril, 2003 SCHEDULE ( Regulations 4, 5 and 7) ZAl,mIA EXPORTING PROCE.SSING ZoNFsAUnIORllY FormEPZl APPLICATION FOR AN ExroRr PROCE.sSil'IIG ZoNE DEVELOPMENT'S PERMIT PART I Developer� background I. Applicant's name: .......................................................................................................................... .. ........................................................................................................................................ __ _

2. Postal address· ............................................................................................................................... . . .

3. Physical address· ................................................................................................... · ...................... . ................................. ,................. .......... ...... ........ ....... ....... ...... .... ··••..._ .................................. ·----............................................................................. ----

4. Telephone numbers: ..................... ,,, ........................ Fax number: .................................................. .

5. E-mail address· .............................................................................................................................. .

6. Registered office address: ............................................................................................................. .

7. Date of registration: ....................................................................................................................... .

8. Originofinvesbnentfunds: ........................................................................................................... .

9. Business of investing company: ................................................................................................... ::

10. Business proposed for Export Processing Zone: .......................................................................... .

11. Proposed date of commencement of operations: ......................................................................... . Particulars of Directors Name Passport/NRC Number Nationality Telephone No. E-mail Address FaxNo Residential Address • I llthApril, 2003 Statutory Instruments 107 Details of Shareholders Name Nationality % Share holding PARr2 Details of the Proposed E PZ Project Investment proposed in EPZ During the 1st three years Year One YearTwo YearThree ZMK US$* ' ZMK US$• ZMK US$• Equity contribution (a)Local (b)Foreign SuB-TarAL Other sources of funds Loan Other(specify) SuB-TarAL TOrAI. lNvBm!ENr • Please Indicate the assumed exchange rate Details of the proposed site

12. Location of proposed Export Processing Zone ........ , ................................................•.....•.........•.• (a) District· ................................................................................................................................. . (b) City/fown· ................................................................ · ........................................................... . (c) Physical Address· ................................................................................................................. . (d) Other information on location (if any): ............................ : ................................................... . Size (Hectares) of area proposed for Export Processing Zone: .......................................... . 108 Statutory Instruments llthApril, 2003

13. ls the proposed Export Processing Zone hmd owned by the developen;'I Y4S __ No_

14. If not. �scribe current status of its ownership and developer's intentions op. acquisition: ·•····•· ... ······ ................................ ---························· ...................................................................... .

15. Is the proposed Export Processing Zone site part of a large development at this location? Yes __ No __

16. If so, describe size (hectares) and activities planned for the non-Export Processing Zone area. ....................................................................................................................................................... . .................................. ·---··········· .. ·· .. ··· ... ····· ................................................................................. . lnJemational Transport Access

17. Proxlmlty- (a) Major Roads in km (specify distance) (b) Rail in km (specify distance) ..................................................................... ____ .................................................... .. ( c) International Aiiport (specify distance) (d) Seaport/Harbour (specify distance) ................................. ---.. ····· ............ ____ ............................................. ..

18. I..abourAvw"ltlbility: describe availability oflabour in the proposed Export Processing :i'noe:- i;,.,,,,1opmen1 Plan/or the Export Processing Zone

19. Anootline of the llevelopmentplan for the Export Processing Zone covering the key elements ofdu,es12blishment. C\Snstructlon, promotion and operation of the wne should be submitted with this ·application. Indicate key elements as follows: ( a) Proposed date for co�encement of site development and construction: .... ........................................................................................................................... -....... · ..... ·····•··················································· .. ···•·· .. ········---··················································· (b) Main lahdiJSe components planncil: (i) Sctvicedsite(m2): ......................•............................ ---···································· ·(Ii) ProduoizionlFaclo<y buildings (m2): .....•......•...•......•....••...............•....•.............. , ...•.•..•••..•. (ill) 'WhRl!ou&iog(m2)· ...........•.......•.•..•..•....•...........•••.••..•....•..••....••....•.......•.•.• _ .•.. · ••.•.• (bt) Office Building(m2)· ·········•······•··························-·-•·········-·························•···•·····•·· M Olher((m1) (specify'··························································-··········································· • I 11th April, 2003 Statutory lnstnunents 1()1) ( c) Status of site in n,l&lion to local planninR and developncnt ,qulllioos (i) Has permission for development been sought from the local oulborilia in acoordance with the Town and Country Planning Act Cap 283? Yes __ No __ (ii) If so, attach evidence of the permission: ....................................................................... .. .......................................................... ____ .......................................................... . (iii) Have the necessary statutory approvals been obtained or sought from the labour authorities with respec! to suitability of premises for use by �orlc:ers under the Factories Act, Cap 441? .................................. ____ ................................................................................ .. ( d) Environmental Impact Assessment (i) Has an Environmental Impact Assessment been undertaken in accordance with the Environmental Protection and Pollution Control Act Cap. 204? Yes __ No __ (ii) If soi attach EIA report: ............................................................................................... . (iii) !foot, the authority may require an EIA report certified by the Environmental Council of Zambia. ( e) Promotion by developer ofExport Processing Zone (i) Has promotion of the Zone been undertaken by the developer? Yes __ No __ (ii) If so, summarize results to date: ...................................................................................... . ............................... _______ .......... - , ......................................................... .. ............................................................................. ___ ,.,, ........................................ . (iii) What plans do you have for promotion of the Zone? (iv) Planoed speJJding on promotion in Year I (ZMK)(US$): ............................................... . ' (v) Countries targeted for promotion in Year I: ..................................................................... . .......................................................................................................................................... ........................................................................................................................................... (vi) Sectors/Industries llllgeted for promotioninYearl: ................................................... . ........................................................................................................................................... .......................................................................................................................................... (f) Specific projects or industries which you wish to locate in the Zone: ........................... . .................................................................................................................................................. .................. ,--........................................................................................................ . 110 Statutory Instrnmellfs 11th April, 2003 bifrastructure

20. TI1e EPZ activities will require support infrastructure such-as water, effluent and waste disposal facilities, electricity, and telecommunication. In so far as you can anticipate or forecast, indicate likely demand on these services in the first 3 years. Details on water requirements for the Project (a) Water Estimated daily consumption of water Effluent and water disposal (b) Electricity Connected lighting load (KW) Maximum demand (KVA) Hours of operation ( c) Communications YEAR ! YEAR 2 YEAR 3 YEAR ! YEAR 2 YEAR3 ' NUMBER DATE REQUIRED Telephone Email services Lines Extensions Telefax (d) Other services required (please specify): ......................................................................... . ----··········································----·············································•.-•········· ···················································································································---- (e) Any other information: .... ,----················································································ ···········································································································----- PARr3 Declaration I/We ................................... ,,, ............................................... hereby declare that the particulars given in this application are to the bes_t of my/our knowledge and belief, correct and complete and that any estimates given in this application have been given in good faith and with all due care. lam/We are aware that any Developer's Pennit can be suspended or revoked in accordance with section 28 of the Export Processing Zones Act No. 7 of2001 if any information given in this application is found, among other things. to be false or misleading or if the pennit is found to have been obtained on the basis of fraud or negligent misrepresentation. ' Statutory lnstrnments 111 • - 1 1th April, 2003 Signed (byoron behalfof Applicant) ..................................................... . ........................................................................................... . Nwne ................•....................... ----·----················································································· Capacity in which signed ......... ·.· .......... -.. -.· .....•.............•.. · ................•..•..........•........•......................... -oa1e .•........•.................................... ··················----································································· COMPANY SEAL Note:

1 . The following documents should be submitted with the Application for a pennit: ( a) a certified copy of the articles of association. (b) a certified copy of the certificate of incorporation. ( c) a certified copy of the certificate of share capital. (d) a certified copy of the certificate of minimum share capital. ( e) a copy of the latest annual report and audited financial statements for companies that have been in operation for more than one year. (/) a copy of the projected financial statements in the case of a new company. (g) a detailed Business plan. (h) a certified photocopy of the Passport or National Registration Card showing the nationality, place and date of birth of the person named as director or secretary in the application of incorporation of the company. Note: 2 The documents listed in note 1 should be certified by a Commissioner for Oaths. 2-MmIA ExroRrPROCFSSINOZoNES AurnoRITY APPLICATION FOR AN EXPORr PROCESSING LICENCE FormEPZ2 PARrl Investors background I. Full Name of applicant. ...........•..•..........•..•......................•..................••. · ...•••......•...••.•...•.•••..

2. Postal Addiess· •••......••.•....••..•••.•.••..•.•.••.•••......•....•...........................•.•...••....•••••..••.••.••••••..••

3. Physical Address· ...•..••.......•••..••.....•.•......•••..•.•...•.............••........•.•.•......••..•.•.•.••••..••••••.•••• • .a 112 Statutory Instruments 11th April, 2003

4. Telephone number: ............................................ Fax number .............................................. .

5. E-mail address· .................................................................................................................... .

6. Registered office address: ................................................................................................... ..

7. Date of registration: ............................................................................................................ .

8. Origin of investment funds: ................................................................................. __ _

9. Business of investing company: ........................................................................................ .

10. Business proposed for Export Processing Zone: ............................................................... . -----............................................... _________ _

12. Proposed date of commencement of operations: ............................................................... .

13. Particulars of Directors Name Passport/NRC Number- Nationality Telephone No. E-mail Address FaxNo Residential Address '

14. Details ofsharelwlders Name Nationality % Share holding llthApril, 2003 Statutory Instruments 113 PAI<r2 Details of the proposed EPZ investment IS Investment proposed in EPZ during the I stthree years YearOne YearTwo ZMK US$• ZMK US$• ZMK US$• Year'lbn:e Equity CGGtrlbutlon (a)Local (bJ Fomgn Suu-Tow. Other soun:es of funds Loan Odler(specify) Sm-Tow. Tonu. lNvEsJMENr •Please indicate lhe assumed exchange rate where applicable • I • .. 16 Number of persons expected to be employed in each of the following categories Year I Year2 Zambian Expalriate Zambian Expatriate Year3 Zambian EllpamlD '2 < -5 ..... ..... Category Managerial Staff Technical Staff (i)Skilled (ii) Semi-Skilled Sales Clerical Other workers TOTAL

17. Requirement of raw materials and components Indicate the raw materials/components/services required in the manufacturing of proposed products for the first three (3) years Year One YearTwo YearThree VALUE VALUE QuAN'ITIY UNITS VALUE VALUE QuAN'ITIY UNITS VALUE VALUE hm!CATB W111'111ER ZMK US$ l..ocALLYAVAIU\111.E ZMK US$ ZMK US$ ORIMPoHl'EI> QUANTITY UNITS RAw MA1ERIAL AND/OR COMPONENTS ..... ..... TOTAL 11th April, 2003 Statutory Instrument� 115

18. ProjectedoUlput - (UStfollars) Proposed production/service for Exports Exports Year ! Export markets Quantity Units Value (US$) % ofTotal Total - Proposed production/service for Exports Exports Year2 Export markets Quantity Units Value (US$) % ofTotal Total Exports .. Proposed production/service for I Total Exports Year 3 Export markets Quantity Units % of Total Value (US$) 116 Statutory lnstrumenls llthApril; 2003

20. Give a brief description of the production process to be undertaken (use a<klitional paper ifne=sary): /.'.' · . ,- -•::- � (a) Land( .................................................................................................................................. ,.: . . , ............... . .................................................................................................................................. : . ...:- ............. .. ....................................................................................................................... , ..... ;\�\i�• ............ .. fyarca) (Ha): ........................................................................... :I�t:, ........... .. ........................................................................................................................................... (b) Producllon/Factory Ami (m2): ......................................................................... ; .............. .. ........................................................................................................................................... (c ) WaebouseArea(m2)· ..................................................................................................... . ............................. ,_ .. ,, ...................................................................................................... . (d) OfficeAlm(m2): .............................................................................................................. . ,,, ,,; .. ·

21. l'lanlandEq,dpnuml Pmticularsnf !Nehlnay, vehicles, office equipment, fumitun: and fllltun: Delnillof.-U Origin CootiDZMK CootiDUSS Total .. • I . ,, 11th April, 2003

22. Services Statutory Instruments 117 Details on water requirements for the Project (i) Water Year ! Year2 Year3 Estimated daily consumption of water (ii) Electricity Connected load (KW) Maximum demand (KVA) Hours of operation Year l Year2 Year.3 ,_.,......,) (iii) Communications NUMBER DATEREQUIRED TELEPHONE LINES EXTENSIONS TELEFAX LINES E-MAIL

23. Environmental considerations ( a) Name of waste products if any .......................................................................................... · .................................................................................. , ___ ........................................ .. (b) Method of Disposal... ...................... ___ ................................................................... . ·---........................................................ ............... ·---········ ................... .. ( c ) Has an Environmental Impact Assessment (EIA) been undertaken in accordance with the Environmental Protection and Pollution Control Act Cap 204? Yes D No.□ I If yes, supply copy ............................................. ___ ..................................................... , ___ _ If not the Authority may require such an.BIA report certified by the Environmental Council of Zambia ·········· ............................................................................................................................................ . 118 PART 3 Statutory Instruments llthApril, 2003

24. Relationship to existing operations of investors in Zambia The Zambia Export Processing Zones Authority requires that activities qualifying for EPZ status should export at least 80% of their production. ( a) Do the investors have an existing operation in Zambia producing similar goods or services to thdse now proposed for the EPZ. Yes __ No __ IfYES, give a brief description of existing operations: Location (s): ...................................................................................................................... . ........................................................................................................... , ................................. . (b) Description of Goods/Services: . .............. ..................................... : ....................... , .... , .... . ······ .. ··· ............................................................................................................... , __ _ (c) Number of emp1oyces at 1ocation (s): .......................................................................... .. ················----- ······································································································ ( d) Current output ZMK (US$) ...... ·-······················································································ (e) Current exports as% of current output: ............................................................................ . --- ··························································································'------ (J) Will output,jobs and exports in the proposed Export Processing Zone be additional to existing activities? No __ Yes __ If Yes please elaborate: .................. ---................................................................... . ································································---····································----- ---·······································----- ·----························--- .......................................................................................................................................... ........................................................................................................................................... (g) Other services required (please specify): .....................................................•.....•.............. ····················---········································································································ ............................................................................................................................................. ............................................................................................................................................. (i) Anyotherinfonnation: .............................................................................•........................ .................................................................................. ,, ........................................................ . PARr 4 Dtt/arolion I/We.. ••.•••.••••••••••.•••.•.••..•••••••..••..•.......•.•...••.••.•••.••.••••••••••.•••..•••••• heleby declare that the particula,s given in this application are to the best of my/our knowledge and belief, true and con-ect and lhat any estimates given in this application have been given in good failh and wilh all due can,. ,, ,... I ....,,. 11th April, 2003 Statutory Instruments 119 lam/We are awan, that any Export Processing Licence can be suspended or novoked in'.. BC001dance.mhsection28oftbeBxportProcessingZonesActNo. 7of2001 iflll)'informalion given in Ibis application is found, among other things, to be false or misleading or if the licence is found to have been obtained on the basis of fraud ornegligent misnoJ)l'080ntation. Signatwe of the declarant Full name (in block lellelll)· ......................................................................................................................................... . Capacity in which signed: ............... . .............................................. _____ .............................................. . Date: .... , ____ ........................................... ·----·············································· .. . ......................................................................... -----········· .. ····· ... ································· Company Seal Note: I. 'The following documents should be submitted with the Application for a licence: (a} (b) a certified copy of the articles of association. a certified COPY of the certificate of inco,poration. (c} a certified copy of the certificate of shano capital. (d} (e} a certified copy of the certificate of minimum share capital. a copy of the latesiannual,:eportand auditedfinlnciid ••• HMOIII I'm compa nies that have heel! in operation for man, than ... :,ear. (/) ,,, (r.} a copy of the projectedfinmleialstatrmenll in tbecaNola-......-,. adolailedbuaineu plin. armlifilld pl■lbow uf tbe l'allpaltor Nadar-' C 11 1 ◄h 114flJl111-anddlMlafliillllafany ...---•Dlllll:laror ,.Sm-, lntl!-91 •-, .... IF, h •llfth.CWlf&l). I Canhlnowi111 the Note 2: Thedocuments listedin note I sbouldbecertified by a O+moleee lierOldltJ. ,, ' "i ,. ,. 120 Statutory Instruments llthApril, 2003 ZAMBIA EXPOIU l'ROCESSIN0 ZoNES AurnoRm' Developer's Permit PemtltNo. FonnEPZ3 Name of Developer: ....•............••.....................•........................•........•.......•.•.......•........•.......•..•............ Address: ·······································---·························································································· Registered Office address: Major Shareholders: Name ----··············N•tionality: ...................•....... % Share holding: ....•.•.......•.......•.•....... Brief Project Description: ·····················---·········································································· Nature and Value of Total Inveslinent: ............................................................................................... .. Nature and Value of Foreign Investment: ........................................................................... , ................ . Special conditions· ..•........•.•...•........••......•........•.......•......•.........•...............•...•....•••.......•.•.....•••.•.....•..•... This pennit is issued this ....•.•.... day of ..•.....•......••........•....... 20 ....... , and shall remain valid for a period- of 10 years from the date of issue in accordance with Section 21 of the Export Processing Zone Act No. 7 of2001 unless earlier suspended or revoked by the Authority. Date of expiry: .....•..............••.........................•.............. Managing Director ( 't llthApril, 2003 Statutory Instruments EXPORT PROCESSINoZoNFSAurnoRITY Export Processing Licence 121 Licence No. FormEPZ4 NaJ11eoflnvestor- ......................................................................................... , ..................................... .. Address· ............................................................................................................................................... . Registered Office: ............................................................................................................................... . Major Shareholder: .............................................................................................................................. . Name: ............................ Nationality ..................... percentage Share holding: .............................. . Briefinvesttnent Description: ...................................................................... , ..................................... . Nature and value of total investment: ........................................................... , .................................... .. Nature and value of foreign investment: ............................................................................................. . Special conditions: ............................................................................................................ , ................. .. This licence is issued this .......... day of ............................... , 20 .... , and shall remain valid for a period of 10 years from the date of issue in accordance with Section 21 of the Export Processing Z.OneAct No. 7 of2001 unless earlier suspended or revoked by the Authority. Date of expiry: ..................................... . ................ ____ _ Managing Director LuSAKA 3rd April, 2003 D. K.A. PATEL, Ministerof Commerce, Trade and Industry 122 Statutory lnstnunenls 11th April, 2003