Application For Freeport License

Introduction

The Third-Party Freeport Developer (3FD) that is Mauritius Freezone logistics Ltd , who can build, develop and manage infrastructures to be rented to licensees in order to facilitate the authorised Freeport activities including:

warehouses,

cold storage facilities,

offices,

exhibition centres,

processing units and

open storage facilities,

provision of third party logistics services to licensees

the carrying out of marketing activities and

organising international exhibitions and international trade fairs.

Freeport Zone14 is managed by MFL Ltd.

FREEPORT ACTIVITIES GUIDELINES

The Freeport activities authorised to be operated at Zone 14 are:

Warehousing and Storage

Breaking bulk

Sorting, Grading, Cleaning and Mixing

Labelling, Packing, Repacking and Repackaging

Minor processing

Light assembly

Ship building

Repairs and maintenance of ships and aircrafts

Storage, maintenance and repairs of empty containers

Export and re-export oriented airport and seaport based activities

Freight forwarding services

Quality control and inspection services

Annual License Fee Payable

FreeportLicense / Annual License Fee Payable
Within the due date / After the due date
(Rs) / (Rs)
1 / Payable to the Comptroller of Customs / 10,000 / 15,000
2 / MFL processing fee / 1,000

Application for a FreeportLicense

The MFL Ltd shall provide counselling services to potential clients interested to operate in the Freeport sector.

No person shall make an application for a Freeportlicense unless the person is a company or a cooperative society.

AFreeportlicenseeshall not be engaged in any business activity outside the Freeport zone under the same company name.

An application for a Freeport License shall be made to the Comptroller of Customs on the official Application Form through a third party Freeport developer.

Upon application the applicant has to submit the following documents

  • A complete and correctly filled Application Form
  • The Certificate of Incorporation of the applicant’s new company (if already registered under the Companies Act)
  • The first five pages of the Articles of Memorandum of the applicant’s new company (if already registered under the Companies Act)

It is possible for a company to make an application for a Freeport license, although the company has not been created and registered under the Companies Act,

However, the above mentioned documents should later be submitted when they are available.

In the case where Freeportlicensee is intending to do minor processing and simple assembly activities, a full detailed feasibility study should be presented which clearly outlines the project of the applicant,

And which should also be submitted to MFA by the MFL Ltd

On receipt of an application for a Freeport License, MFL Ltd shall check the application form and ensure that the applicant has submitted all the required information and particulars.

A section in the Application Form is reserved for MFL Ltd for control and validation purposes.

The MFL Ltd then transmits the application to theComptroller of Customs for consideration.

Upon reception of the application form an acknowledgement letter, with an application file number, will be sent to the third party Freeport developer.

The application file number must then be quoted in all communications to Customs related to the application.

The application is processed by Mauritius Customs.

The Comptroller of Customs may require the applicant to give further information as may be necessary for the determination of the application.

Once the license is approved by the Comptroller of Customs, a notice of approval is received at MFL Ltd.

The license fee is submitted to the Comptroller of Customsby MFL Ltd, as well as the articles of memorandum and the certificate of incorporation if not yet submitted.

The Freeport License certificate is issued by the Comptroller of Customsto MFL Ltd.

MFL Ltd will then keep a copy of the Freeport License certificate and give the original to the applicant.

The MFL Ltd will request the new Freeport Operator to take his certificate of incorporation and immediately register with Income Tax for a TAN Number (Tax Account Number), at the Registration sector and ask for a an import an export permit certificate for the company.

This registration also applies for Customs for the submission of Freeport declarations through the TradeNet System before starting operations in the Freeport Zone.

If the company is not registered as an import or export company any CMS declaration made will automatically be rejected.

In all further communications with the Customs or any other authorities, the Freeport Operator’s License Id and Name shall be quoted which is issued by the Customs.

All correspondence with the Customs is done through MFL Ltd and not directly with the Freeport Licensee.

FreeportLicense General Conditions

The FreeportLicense is delivered to a company subject to the following conditions:

The Company shall conduct such activity under such conditions as set out in the Freeport Act 2004 and Regulations and their subsequent amendments.

For all goods sold on the local market, a Freeport Licensee shall respect the quantum decided by the Board as per Section 19 sub-section 5 of the Freeport Act 2004.

The Freeport Licensee shall not carry out any Freeport activity outside any Freeport Zone with the same company name.

Applicable duties, taxes and VAT shall be paid at Customs and all permits shall be obtained from relevant Authorities/Ministries for all goods sold on the local market.

The Freeport Licensee shall pay corporate tax on profits derived from sales of goods to the local market and the EPZ.

On sales on the local market by the Freeport Licensee the purchaser is liable to obtain required permit from authorities.

Two declarations are made using the same declaration number one by the Freeport Licensee and second from by the purchaser of the local market.

All Agricultural products imported into the Mauritius Freeport should be accompanied by valid phyto-sanitary certificates issued by the Ministry of Agriculture by the (local market) purchaser

For any controlled product that is sourced from the local market for re-export, the relevant export permit has to be obtained from the competent authorities.

For example upon importation of fruits the clearance of goods should be obtained from the Ministry of Agriculture. However, export of such goods does not require clearance.

The local company has to do all the necessary procedures, and obtain customs declaration and all clearance required before exportation which shall be verified by the MFL Ltd

An Offshore Company holding a Freeport License shall not transact any Freeport activity with local residents, except with the written approval of the MOBAA. Only if the company is both a Freeport Licensee and a MOBAA holder. The Freeport Licensee shall inform the Mauritius Freeport Authority of such approval.

Transhipment of goods through the Freeport does not confer Mauritius origin to these goods. Such goods are entitled a certificate of origin obtained from the respected country.

Simple transhipment or minor processing of goods that do not meet the minimum value addition requirements do not qualify for preferential treatment under the following convention/treaty/act: Africa Growth & Opportunity Act (AGOA); Common Market for Eastern & Southern Africa (COMESA); Southern African Development Community (SADC); Cotonu (ACP/EU); Indian Ocean Commission (IOC).

Any change in the ultimate beneficial owner, shareholding structure, purpose or working principle of the company shall be notified in written forthwith to the Mauritius Freeport Authority.

Please note other specific conditions in addition to the above may be attached to a Freeport License depending on the application and nature of activities to be carried out. For example in cases of minor processing, or upon importation of goods on local market.

Mauritius Freezone Logistics Ltd Page 1 of 6