EXPORT PROCESSING ZONES ACT - (Chapter 280 Laws of Belize)

The Export Processing Zone (EPZ) Program attracts both local and foreign investments to boost production for export markets with a focus on manufactured goods and non-traditional agricultural products. An EPZ company is treated as being outside the customs territory of the host state, where export-oriented activities are undertaken in the manufacturing, processing, assembly, and service sectors.

Benefits of EPZs

* Full import and export duty exemptions
* Exemptions from capital gains tax, property and land taxes, excise, sales and consumption taxes, taxes on trade turnover, on foreign exchange and transfer tax.
* Tax holiday of 20 years with an option to extend and deduct loses from profits following the tax holiday period.
* Dividend tax exemption in perpetuity.
* Opportunity to open foreign currency bank accounts in Belize and abroad.
* Opportunity to sell, lease or transfer items, goods and services within an EPZ.
* Exemption from the Supplies Control Act and its regulations.
* No import restrictions on raw materials.
* No import or export licensing requirement.
* No trade licenses.
* Customs inspection at the Zone for expediency.

Types of EPZs

1. Export Processing Zone Developer – a cooperation established to administer an export-processing zone. Developers provide factory space, communications, water/sewage networks, power, and any other facilities to assist companies set up promptly.
2. Export Processing Zone Business – a private party that has been granted a Certificate of Compliance and conducts a trade or business including but not limited to manufacturing, commercial, office, warehousing, professional or other export related activities.
3. Special Export Processing Zones – companies on which EPZ status is conferred wherever they locate to accommodate resource base activities. This is a highly flexible tool enabling companies to operate from convenient locations while enjoying EPZ benefits.

Who Qualifies? Any private or public party, or group of parties may establish an EPZ business on property it owns or leases within the Zone provided it has applied for and obtained a Certificate of Compliance from the Export Processing Zone Committee (EPZC).

Applications for an “EPZ Developer, Business, or Special EPZ” Application forms can be obtained from the Ministry of Finance (Revenue) or can be found in The Laws of Belize under CAP. 280 First Schedule Regulation (2).

Eighteen (18) completed application forms must be submitted to the Ministry of National Development with the following supporting documents:

1. Project proposal including:

* Physical master plan showing overall layout
* Proposed construction schedule
* Capital cost estimate
* Staff and management organization
* 5 year financial projections, leasing or sale arrangement plans

2. Provide copies of the company’s Memorandum & Articles of Association, and Certificate of Incorporation.

3. Provide two bank references on the firm and its main partners.

4. Provide one Commercial reference on the firm and its main partners.

5. Complete the enclosed application form. (Application for EPZ Designation form can be found in the EPZ Regulations)

6. Submit a business plan.

7. Provide any other information, which the Export Processing Zone Committee may require.

8. Enclose the required application fee of BzD $1,000.00.

9. Once approved an annual industrial roof space fee is payable upon the issuing of the Certificate of Compliance and the signing of the Operations Contract. This fee is payable annually. 25 cents per square foot of industrial roof for the firs 7,500 square feet, any area in excess is calculated at 20 cents per square feet. (EPZ Regulation, Section 4 (3))

For Further Information
Contact Ministry of National Development
New Administration Building, Belmopan
City Cayo District, Belize Tel: (501) 822-2526 Fax: (501) 822-3673
Email: investmentbelize@yahoo.com