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NIGERIAN CRUDE OIL AND GAS.
Nigerian Oil & Gas Export Free Zone (FEZ)
Oil & Gas
Nigeria Oil and Gas
Export Free Zone FEZ
Oil and Gas Export Free Zone Decree No. 8, 1996 . This Decree establishes an
Oil and Gas Export Free Zone, and also the Oil and Gas Export Free Zone
Authority (“The Authority”) to manage, control and coordinate all activities
within the zone. The Authority has power to take over and perform such other
functions being hitherto performed by the Nigeria Export Processing Zones
Authority as they relate to the export of oil and gas from any of the
Nigeria Export Processing Zones established by the Nigerian Export
Processing Zone Decree 1992.
Exemption from Taxes
Approved enterprises operating within the Export Free Zone are exempted from
all Federal, State and Local Government taxes, levies and rates.
Approval of Enterprise to Undertake
Approved Activity
(1) Any enterprise which wishes to undertake an approved activity within the
Export Free Zone, will apply to the Authority in writing for permission to
do so and submit such documents and information in support of the
application, as the Authority may require from time to time.
(2) The Authority may grant, subject to such terms and conditions as it
thinks fit, approval for an enterprise to undertake the approved activity
specified in its application.
Power to Grant License
(1) The Authority may grant a license for any approved activity in the
Export Free Zone to an individual or business concern whether or not the
business is incorporated in the customs territory.
(2) The grant of license by the Authority shall constitute registration for
the purposes of company registration within the Export Free Zone.
(3) A body corporate licensed to operate within the Export Free Zone and
undertaking an approved activity shall notify the Authority of any purchase,
assignment or transfer of shares in the body corporate, except where such
shares are quoted and are freely transferable on any international stock
exchange.
Payment for Goods and Services
(1) Where an approved enterprise operating in the Export Free Zone supplies
goods and services to customers within the customs territory, that
enterprise shall be entitled to receive payment for such goods and services
in foreign currency and for the purposes of such payment, the rules and
regulations applicable to importation of goods and services into Nigeria and
repatriation of the proceeds of sales or services shall apply.
(2) Where a person within the customs territory supplies goods and services
to an approved enterprise established within the Export Free Zone, that
person shall be entitled to receive payment for such goods or services in
foreign currency and the rules and regulations applicable to export from
Nigeria and the repatriation of proceeds from sales or services shall apply.
Import of Goods into the Export Free
Zone
(1) The Authority and any approved enterprise are entitled to import into
the Export Free Zone, free of customs duty, any capital goods, consumer
goods, raw materials, components or articles intended to be used for the
purposes of and in connection with an approved activity, including any
article for the construction, and maintenance of premises in the Export Free
Zone or for equipping such premises.
(2) Articles for equipping premises include equipment for offices and other
ancillary facilities necessary for the proper administration of the premises
and for the health, safety, hygiene and welfare of the premises and of
persons employed therein.
(3) All goods brought into the Export Free Zone shall be consigned to the
Authority or to an approved enterprise and the goods may, with the approval
of the Authority, be transferred from one approved enterprise to another or
from the Authority to an approved enterprise or from an approved enterprise
to the Authority.
(4) The Authority many take such steps as it deems necessary to preserve
goods within the Export Free Zone, whether by moving the goods from one
place to another or by storing the goods and where any expenses are incurred
by the Authority in so doing, the owner or consignee of the goods shall
reimburse the Authority for the expenses.
(5) Goods brought into the Export Free Zone may;
(a) be stored, sold, exhibited, broken up, packed, graded, cleaned, marked,
re-marked, loaded, re-loaded, divided, mixed, separated or otherwise
manipulated; or
(b) be worked, processed or re-processed or otherwise manipulated or
manufactured; or
(c) be consumed if the goods are meant for consumption in the Export Free
Zone; or
(d) be removed from the Export Free Zone or sent into the customs territory,
whether as originally packed or otherwise; or
(e) subject to relevant enactments be destroyed.
(6) Where any goods which are dutiable on entry into the customs territory
are sent from the Export Free Zone into the customs territory, the goods
will be subject to the provisions of the Customs, Excise Tariff,
(Consolidation) Act and its regulations, and if the goods are intended to be
disposed of in the customs territory, will not be removed from the Export
Free Zone unless:
(a) the consent of the Authority has been obtained; and
(b) the relevant customs authorities are satisfied that all relevant import
restrictions have been complied with and all duties have been paid.
(7) Where goods are brought from the customs territory into the Export Free
Zone for the purposes of an approved activity the goods are deemed to be
exported.
(8) The Nigerian Government will appoint for the Export Free Zone, an
inspecting agent who will be charged with responsibility of inspecting goods
imported from the Export Free Zone into Nigeria for use by an approved
enterprise within the Export Free Zone.
Prohibition Of Retail Trade
(1) No retail trade is conducted within the Export Free Zone without the
prior approval of, and each may be subject to terms and conditions set by,
the Authority.
Export Of Goods From The Export Free Zone
Export of goods from the Export Free Zone to the
customs territory is, except as otherwise prescribed,
subject to the same customs and licensing
requirements as apply to goods imported from
other countries.
Incentives and Related Matters
(1) Approved enterprises within the Export Free Zone are entitled to the
following incentives:
(a) Legislative provisions pertaining to taxes, levies, duties and foreign
exchange regulations shall not apply within the Export Free Zone.
(b) Repatriation of foreign capital investment in the Export Free Zone at
any time with capital appreciation of the investment.
(c) Remittance of profits and dividends earned by foreign investors in the
Export Free Zone.
(d) No import or export licenses shall be required.
(e) Up to a maximum of 25 per cent of production may be sold in the customs
territory against a valid permit, and on payment of appropriate duties.
(f) Rent free land at construction stage, thereafter rent shall be as
determined by the Authority.
(g) Up to 100 per cent foreign ownership of business in the Export Free Zone
allowable.
(h) Foreign managers and qualified personnel may be employed by companies
operating in the Export Free Zone.
(2) The Authority shall be the only agency qualified to:
(a) give all approvals; and
(b) cancel all licenses.
(3) The Authority shall simplify all procedures necessary for authorization
of investments in the Export Free Zone and state by Order, from time to
time, its requirements for the grant of authorizations for investments in
Export Free Zone.
(4) There shall be no strikes or lockouts for a period of 10 years following
the commencement of operations within the Export Free Zone and any trade
dispute arising within the Export Free Zone shall be resolved by the
Authority.
Work Permit
Where a person who is a non-Nigerian citizen is employed by the Authority or
by an approved enterprise established in the Export Free Zone, upon
application by the enterprise for a license to establish itself within the
Export Free Zone or at any time thereafter, the enterprise shall apply on
behalf of the non-Nigerian citizen direct to the Authority for the purpose
of immigration and employment permits, in such manner as may be prescribed
by the Authority.
