what is free trade zone in nigeria

what is free trade zone in nigeria

Retrieved April 1, Establishment of zones". Retrieved 10 April Mark Kesselman. Houghton Mifflin. No Logo. International trade. Absolute advantage Balance of payments Balance of trade Capital account Comparative advantage Current account Export-oriented industrialization Fair trade Foreign exchange reserves Globalization Import substitution industrialization Net capital outflow Outsourcing Tariff Trade justice Trade war Trading nation.

Category Commons. Mobile Compatibility: Work from your mobile device. Fraud Control : Checks against fraud and illicit financial transactions with the user-role console to set-up administrators, approvers, and disbursers functions. Data Security: Highly private, confidential, secure and encrypted data including soft token generation.

User Intelligence Experience: Analytical and interactive dashboard interface displaying a general awareness and overview of when and how vendor payments and tax obligations are met. Taxit Withhold. A licensed enterprise does not need to comply with the rules of local incorporation in Nigeria, which are governed by the provisions of the Companies and Allied Matters Act which provides for the incorporation of companies and incidental matters.

Alternatively, a company may opt to register a company outside the FZ and subsequently apply for a licence to operate a registered FZ company within the FZ, as an FZ enterprise. The Act legitimises the receipt in foreign currency by an approved entity of payment for goods and services supplied to customers within Nigeria. Thus foreign investors can charge for services in their own currency, and are not bound by the restrictive provisions of the Central Bank of Nigeria Act and recent regulations mandating the payment for goods and services in naira.

However, for the purposes of such payment, the rules and regulations regarding the importation of goods and services into Nigeria and the repatriation of proceeds of sales or services will be applicable.

Approved entities are also entitled to import into any EPZ, 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, alteration, reconstruction, extension or repair of premises in an EPZ or for equipping such premises.

However, notwithstanding the removal of Customs duties, the Act prescribes for the provisions of the Customs and Excise Management Act and any regulation made thereunder to be applicable where goods that are dutiable on entry into Nigeria are sent from an EPZ into Nigeria.

The Act has made numerous provisions and incentives for individuals and companies wishing to operate in EPZs in Nigeria. The NEPZ Regulations have also liberalised the investment procedures and approval process in EPZs, thereby eradicating the bureaucratic bottlenecks that can accompany regulatory procedures and approvals in Nigeria.

For instance, an application to undertake activity must be considered within five working days of its acknowledgment and the applicant must be notified of approval or otherwise. It focuses primarily on FTZs in Nigeria but for better understanding and background on the concept, the paper first takes the reader on a trip round FTZ and related concepts. Chapter one seeks to analyse the FTZ concept while taking a look at the history and evolution, types, benefits and rationale behind the FTZ concept.

The next chapter proceeds to examine the legal framework of the free trade zones in Nigeria. In the next chapter, there is an attempt to examine the contentious issues and vulnerabilities of free trade zones in Nigeria with particular focus on money laundering, tax evasion and tax avoidance.

Chapter four compares selected FTZs worldwide. Finally, the last chapter contains the conclusions and recommendations of the seminar paper. The recommendations are specifically focused on the Nigerian experience with free trade zones. They are a geographic area where goods may be landed, handled, manufactured or reconfigured, and re-exported without the intervention of the customs authorities.

Only when the goods are moved to consumers within the country in which the zone is located do they become subject to the prevailing customs duties. Free-trade zones are organized around major seaports, international airports, and national frontiers—areas with many geographic advantages for trade. An FTZ can also be a region where a group of countries has agreed to reduce or eliminate trade barriers.

Among the advantages of the system are the quicker turnaround of ships and planes through the reduction in formalities of customs examinations and also the ability to fabricate, refinish, and store goods freely. Sheffrin Economics: Principles in action. ISBN As other modes of international transport evolved, FTZs also appeared near airports and border crossings. FTZs subsequently shed their purely trading nature becoming ideal location for processing of raw and intermediate materials into finished products, thereby increasing local value added, generate more employment, industrial development and productive investment.

Many emerging economies are active participants: research shows that most FTZs are located in developing countries. It was hugely successful, and is still in operation today. The number of worldwide free-trade zones proliferated in the late 20th century.

In the United States free-trade zones were first authorized in One of the biggest benefits of incorporating a company in EPZ is that the Nigeria Export Processing Zone Act prevents an employee from conducting a work strike or any lock-outs within ten years of the inauguration of a business. The regulations of the NEPZ state that all the companies which are licensed companies established in EPZ will be exempt to the expatriate quota.

The expatriate quota states that in case any qualified Nigerians are present which can potentially occupy a position in a business, then the business cannot hire an expatriate for the job. How to Set Up a Company in the Free Trade Zones in Nigeria To set up a company in the free trade zone, a businessman needs to take specific steps which are standard for all the free zones of the country.

These steps are given below: Fill up the application form, which can be downloaded online, collect from the free zone administration office or the headquarters of Nigeria Export Processing Zone Authority NEPZA in Abuja. The application will be reviewed within five working days, and at the end of this process, the application may be accepted by the administration or may be rejected.

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Export processing zones EPZs — also known as what is free trade zone in nigeria zones FZs — are areas in which businesses are exempt from the what is free trade zone in nigeria regime applicable in Nigeria, particularly with regard to Customs duty and tax. In return, the government expects companies operating in the EPZs what is free trade zone in nigeria boost national exports, create what is free trade zone in nigeria and help in diversifying the Nigerian economy by bringing in new activities. There are two types of FZ in Nigeria: specialised and general. With the incentives EPZs offer to corporations, they are one of various methods used to attract foreign direct investment, increase foreign exchange earnings, promote technology transfer and develop export-oriented industry in Nigeria. Of these, 14 are operational, with nine under construction and eight awaiting approval to begin approved activities. It is also responsible for promoting and facilitating local and international investments in Nigeria into licensed EPZs. The Act also watch the simpsons online free season 11 private and public sector involvement, or a combination of both, in the operation and development of EPZs, albeit under what is free trade zone in nigeria supervision of, win xp tablet pc edition free download with the approval of, NEPZA. Under the Act there are seven activities permissible in EPZs, namely: manufacturing of goods for export; warehousing, freight forwarding and Customs clearance; handling of duty-free goods trans-shipment, sorting, marketing, packaging, etc. Activities that are considered by NEPZA to be suitable include: oil and gas what is free trade zone in nigeria electrical and what is free trade zone in nigeria products; textile products; garments; wood products and handicraft; leather products; petroleum products; rubber and plastic products; cosmetics; and other chemical products. It is focused on maritime and hydrocarbons services and operations. It also has easy access to the sea and Lagos International Airport, and its jetty offers access to the Lagos road infrastructure and its links to the rest of Nigeria. LADOL is strategically positioned at the entrance to Lagos harbour and provides a one-stop shop for multinational industrial and oil and gas companies operating in West Africa. The zone is managed by Global Resource Management Free Zone Company, and what is free trade zone in nigeria a range of local and foreign enterprises. What is free trade zone in nigeria offers easy access to the existing international airport and sea port of Lagos. It is bordered by 5 km of coastline and stretches 50 km from Lagos city centre. A licensed enterprise does not need to comply with the rules of local incorporation in Nigeria, which are governed by the provisions of the Companies and Allied Matters Act which provides for the incorporation of companies and incidental matters. Alternatively, a company may opt to register a company outside the FZ and subsequently apply for a licence to operate a registered FZ company within the FZ, as an FZ enterprise. The Act legitimises the receipt in foreign currency by an approved entity of payment for goods and services supplied to customers within Nigeria. Thus foreign investors can charge for services in their own currency, and are not bound by the restrictive provisions of the Central Bank of Nigeria Act and recent regulations mandating the payment for goods and services in naira. However, for the purposes of such payment, the rules and regulations regarding the importation of goods and services into Nigeria and the repatriation of proceeds of sales or services will be applicable. Approved entities are also entitled to import into any EPZ, 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, alteration, reconstruction, extension or repair of premises in an EPZ or for equipping such premises. However, notwithstanding the removal of Customs duties, the Act prescribes what is free trade zone in nigeria the provisions of the Customs and Excise Management Act and any regulation made thereunder to be applicable where goods that are dutiable on entry into Nigeria are sent from an EPZ into Nigeria. The Act has made numerous provisions and incentives for individuals what is free trade zone in nigeria companies wishing to operate in EPZs in Nigeria. what is free trade zone in nigeria According to the World Bank, Free Trade Zones (FTZs) are duty-free areas, offering warehousing, storage, and distribution facilities for trade. The Lagos Free Trade Zone is built on a vision of diversified opportunities and booming economic potential. Strategically located with access to markets and. Export Processing Zone. (EPZ) is an economic legation for FDI to operate free from the Nigeria tax laws, levies, duties and foreign exchange regulations.” Dr. A foreign-trade zone (FTZ) is a class of special economic zone It is a geographic area where Indonesia, El Salvador, China, the Philippines, Malaysia, Bangladesh, Nigeria, Pakistan, Mexico, the Dominican Republic, Costa Rica, Honduras. The Calabar Free Trade Zone (CFTZ) is an area just north of the port of Calabar, Cross River State, Nigeria that is occupied by companies engaged. Free Trade Zone Incentives in Nigeria The Federal Government of Nigeria has passed an aggressive free zones law (NIGERIA EXPORT PROCESSING ZONES​. Lekki Free Trade Zone (LFTZ). LFTZ is located on Lekki Peninsula in Lagos and covers 16, ha. It offers easy access to the existing international airport and sea. The ultimate aim was for the free trade zone scheme to attract foreign direct investment, generate employment, enhance trade and. The ultimate aim was for the free trade zone scheme to attract foreign direct investment, generate employment, enhance trade and. Free-trade zones are usually located around major seaports or international airports and the Nigerian Government through the Nigeria Export. My Wishlist. The regulations of the NEPZ provide that all the companies which are licensed companies established in EPZ will be exempted from the expatriate quota requirement. This makes inve Essentially, there are three major grants of Free Trade Zones in Nigeria. Ogun Guangdong Free Trade Zone. There are several benefits which can be utilized by an enterprise when it is set up in an EPZ in Nigeria. The process of exchanging these Move in and operate. This Free Trade Zone is specialises in packaging and food processing. We hope it serves the purpose. How to Set Up a Company in the Free Trade Zones in Nigeria To set up a company in the free trade zone, a businessman needs to take specific steps which are standard for all the free zones of the country. A Free Trade Zone can accumulate direct foreign investments! In return, the government anticipates that the companies mentioned aboves will help the economic growth of the country and boost the national exports. It occupies a land size over 59 Hectares. what is free trade zone in nigeria