(Decree DRAFT)

PART FIVE

CITATION AND DEFINITION

Concessions and Guarantees

Article 11.               

Goods brought into HAFZ, as well as those manufactured therein and exported there from outside the local market shall not be subject to any import and export duties and fees or production taxes in force in the State or Republic. They also shall not be subject to customs measures, import and export restrictions legally imposed in the State or Republic.

Article 12.               

All projects operating in HAFZ shall be exempted from taxes imposed on industrial and commercial profits and from income tax in force in the State and Republic for the Term.

Article 13.               

The salaries, wages and remuneration of non-Somalia employees and workers engaged in projects within HAFZ, shall not be subject to income tax in force in the Republic.

Article 14.               

Financial transactions that take place within HAFZ and between them, as well as between them and others outside the Republic shall not be subject to exchange control provisions and measures in force in the Republic.

Article 15.               

Projects shall have the right to transfer their capital and profits to outside HAFZ. Non-Somalia employees and workers shall have the right to remit their salaries and wages and the like to outside or abroad of HAFZ or the Republic.

Article 16.               

a)        Nationalization or confiscation of projects operating within HAFZ is prohibited with the Term or any extension thereof;

b)        Seizing the funds of these projects or freezing them or imposing guardianship are prohibited except by a judicial ruling.

Article 17.               

Without prejudice to the right of project owners to employ whomsoever they desire of non Somalia employees and workers, they have to take into consideration the relevant conditions of the Agreement.

Article 18.               

The project shall be totally foreign-owned and shall enjoy all the concessions and guarantees granted by this Law.

PART SIX: Fees and Tariff

Article 19.               

The Board of HAFZA shall have the sole right to issue the regulation prescribing fees for licenses granted by HAFZA to Project owners.

Article 20.               

The Board shall draw up the Tariff Schedule and fees payable to HAFZA or to others in consideration of facilities and services rendered by HAFZA or the other parties to project owners.

Article 21.               

 HAFZA shall indicate the rules and dates of collecting tariffs and fees as specified in the Tariff Schedule as well as fines due for delayed payment or non-payment.

Article 22.               

The Government shall be entitled to a share of the Tariffs as provided for in the Agreement together with the Compensation stated in the Agreement.

Article 23.               

In addition to Article 22, HAFZA shall arrange for the development of the following infrastructure Projects referred to in the Agreement.