All sectors involved in manufacturing or international trading in products or services, EXCEPT THE OIL AND GAS SECTOR, are eligible for investment through the Free Zones Programme.
There are no dollar value caps set on levels of investment via the Free Zones Programme. However, petroleum, natural gas or primary petrochemical production or any production activity, in which petroleum, natural gas or petrochemicals are a major input, even if used as fuel, would not qualify for Free Zone approval.
Similar to locally owned and operated businesses, foreign investors are also required to conform to the following objectives:
- The creation of jobs - Development of skills - The export of goods or services - New investment
Activities which qualify for Free Zone approval are: - manufacturing and international trading in products and services, all for export.
A Free Zone enterprise must be a company incorporated or registered in Trinidad and Tobago as such all foreign companies are required to register a business entity locally. All statutory / regulatory requirements which are attached to the registration of a foreign owned company in Trinidad and Tobago must be met.
The foreign company must also provide a formal business plan / proposal detailing the activity for approval with projections indicating staffing requirements, imports / exports, revenues, expenditures and income.
The Free Zones Company provides support for the approval of work permits to foreign nationals whereby the cost and time period are vastly removed. The foreign company must provide justification that the skill set / expertise required for start-up is not available locally and also show intent to transfer the said skills to local proponents over the medium to long term.
Customs works closely with the Free Zones Company (TTFZ) as the main oversight agency along with the TTFZ to monitor the operations of free zone approved enterprises. Customs oversees all goods and services entering or leaving designated free zone areas to ensure that all compliance / regulatory guidelines are upheld. Customs also helps to ensure the smooth movement of goods and services into and out of free zones. Free zones approved enterprises are monitored for the life of the enterprise by Customs and cannot operate without a resident or designated customs officer / agent attached to the enterprise.
Free Zone projects should conform to the following objectives:
- The creation of jobs
- Development of skills
- The export of goods or services
- New investment
Activities which qualify for Free Zone approval are: - manufacturing and international trading in products and services, all for export.
A Free Zone enterprise must be a company incorporated or registered in Trinidad and Tobago.
A formal business plan / proposal detailing the activity for approval with projections indicating staffing requirements, imports / exports, revenues, expenditures and income must be submitted along with applications.
Petroleum, natural gas or primary petrochemical production or any production activity, in which petroleum, natural gas or petrochemicals are a major input, even if used as fuel, would not qualify for Free Zone approval.
Presently, approved enterprises are required to export at least 75% of output except for the case of a service company which must export at least 50% of output.
The designation of a new free zone requires the recommendation of the Free Zones Company and the approval of the Minister of Trade and Industry.Enterprises and activities are approved by the Free Zones Company.Single-enterprise free zones would only be considered for designation and be recommended to the Minister where the nature and scale of operation are considered appropriate and subject to the location, security and customs arrangements being satisfactory to the Free Zones Company and the Comptroller of Customs.Once relevant application forms have been satisfactorily completed and submitted to the Free Zones Company, together with all required documentation, approval and designation of a new free zone can be completed within four weeks and approval of the enterprise to carry out an activity in the free zone can be completed within two weeks thereafter.An application for designation of a single enterprise free zone must be accompanied by an application to carry out an approved activity in the Free Zone.
Depending on the type of business venture (particular product or service traded) approvals would be required from one or more of the following agencies before the project is approved by the Free Zones Company. In some cases the Agencies / Ministries must be informed prior to set-up of operations (MILES PLEASE INCLUDE LINKS TO THE WEBSITES NEXT TO EACH AGENCY WHERE POSSIBLE, THANKS).
In accordance with the Trinidad and Tobago Free Zones Act, (1988) the TTFZ administers the following incentives (N.B. Excepts taken from the Free Zones Act):
Approved enterprises shall not be subject to import licensing or, where goods are being shipped other than to the customs territory, to export licensing. Articles which, (subject to section 18 of the Act), may be imported into a free zone free of customs duty include:
Packaging material, intermediate goods, and sub-assembly goods to be used in manufacturing, processing, refining, assembly, purifying, mixing, or otherwise transformed by enterprises in the free zone. Goods entered by transshipment or repackaging, labeling or warehousing. Articles which, (subject to section 18 (1) (b)), may be imported into a free zone free of customs duty include:
Building materials including tools, pipes, pumps, conveyor belts, electronic and electrical machinery, and goods and machinery incidental to the setting up of an enterprise in the free zone. Other apparatus and materials necessary for construction, alteration, extension or repairs to premises.
Lands and buildings in a free zone, any improvements thereto and all machinery and plant thereon, shall be exempt from all land and buildings taxes under the Lands and Buildings Taxes Act, and from taxes under the Municipal Corporations Act or such other laws imposing rates or taxes on land, buildings, improvements, plant and machinery.
The Free Zones Company and an approved enterprise engaged in exporting services from a free zone to a territory, other than the customs territory shall be exempt from income tax, corporation tax, business levy, or any other tax or levy, on sales, receipts, profits or gains in respect of those services
Profits of a branch, dividends and other distributions arising from activities in the free zone, remitted or deemed to be remitted by the Free Zones Company or an approved enterprise to a non-resident shall not be subject to withholding tax.
Where a person is employed by an approved enterprise, he and that enterprise shall be exempt from such provisions of the Immigration Act as authorize or require the payment or imposition of fees in relation to the grant of a work permit to him. These incentives are available to approved enterprises under the Free Zones Programme provided that they comply with Customs, licensing and other reporting obligations set out in the Free Zones Act. It should be noted that enterprises which fail to comply with these requirements are subject to Revocation of free zone status.
