CHAPTER
326
INDUSTRIES ENCOURAGEMENT |
ARRANGEMENT OF
SECTIONS |
SECTION |
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Declaration of particular commodity. |
Approval of manufacturer. |
Application for approval. |
Objections to proposals to approve a product or
manufacturer. |
Revocation of orders under section 5. |
Relief from customs duty. |
Special provisions relating to machinery, raw
materials and scheduled articles imported free of customs duty. |
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Restriction on disposition of raw materials,
etc., imported duty free and on use of factory premises. |
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Offences against sections 10 and 11. |
Offences by corporations. |
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Repeal, saving and transitional. |
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SCHEDULES |
FIRST SCHEDULE - Scheduled Articles. |
SECOND SCHEDULE. |
CHAPTER 326 |
INDUSTRIES
ENCOURAGEMENT |
An Act to
encourage the establishment and development of industries and for matters
connected therewith. | 10 of 1970
E.L.A.O., 1974
5 of 1981
4 of 1982
19 of 1999 |
[Assent 2nd July,
1970]
[Commencement 18th December, 1970] |
1. This Act may be cited as the Industries Encouragement
Act. | Short title. |
2. (1) In this Act, unless the context otherwise
requires- | Interpretation. |
"approved
manufacturer" or "manufacturer" means a person approved by the
Minister under section 5; |
"approved
product" means a product of manufacture approved by the Minister under
section 3; |
"Comptroller"
means Comptroller of Customs; |
"customs
duty" means- |
(a) any duties
of customs levied by or under the Tariff Act or any enactment passed in amendment thereof or
substitution therefor; |
(b) any tax
payable in respect of any export entry or import entry under the Stamp Act or any enactment passed in
amendment thereof or substitution therefor; |
(c) any other
duties or taxes now or hereafter by law imposed upon or payable in respect of
goods imported into the Bahamas; |
"date of
production" means the date specified in an order under section 5 pursuant
to paragraph (a) of subsection (2) of that section; |
"factory
premises" means the premises specified in an order under section 5 pursuant
to paragraph (b) of subsection (2) of that section; |
"Minister"
means the Minister responsible for Industrial Encouragement; |
"product
of manufacture" means any commodity declared by the Minister by order
under section 4(1) to be a product of manufacture; and |
"raw
material" means any item declared by the Minister by order under section
9(4) to be a raw material. |
"relevant"
means- |
(a) in relation
to "approved product", the approved product in relation to which the
manufacturer in question has been declared an approved manufacturer under
section 5; |
(b) in relation
to "date of production" or "factory premises", respectively
the date or premises specified, in an order relating to a manufacturer under
the said section 5, pursuant to subsection (2) thereof; |
"scheduled
article" means an article mentioned or referred to in the
First Schedule; |
"stamp
tax" means the tax payable in respect of any export entry or import entry
under the
Stamp Act or any enactment passed in amendment thereof or substitution
therefor. |
(2) Any reference
in this Act to importing anything into any place shall be construed as
including taking that thing out of bond in that place. |
3. Subject to the provisions of section 7, the Minister
may by order declare that a product of manufacture shall be an approved product
for the purposes of this Act if he is satisfied that such a declaration is in
the public interest and that the manufacture of such product- | Approval of product. |
(a) is or will
be of benefit to The Bahamas; and |
(b) does not,
or will not, entail any, or any substantial, detriment to The Bahamas, |
both
economic and social considerations being taken into account. |
4. (1) The Minister may by order declare that a
particular commodity is a product of manufacture in relation to any particular
industry for purposes of the Act. | Declaration of particular commodity. |
(2) Any decision
made by the Minister for the purposes of
subsection (1) shall be final. |
5. (1) Subject to the provisions of section 7, the
Minister may by order declare that any person who is manufacturing, or proposes
to manufacture, an approved product shall be an approved manufacturer for the
purposes of this Act in relation to that product, if he is satisfied that such
a declaration is in the public interest and that that person is or will be able
successfully to manufacture the approved product: | Approval of manufacturer. |
Provided that the
Minister shall not declare any person to be an approved manufacturer as
aforesaid if such person- |
(a) is
licensed, registered or otherwise howsoever approved for the purpose of any of
the enactments specified in the Second Schedule; or |
(b) is a
licensee of the Port Authority within the meaning given to that word in
paragraph (e) of subclause (1) of clause 2 of the agreement made between the
Government of The Bahamas and the Port Authority pursuant to the Hawksbill Creek, Grand Bahama (Deep Water
Harbour and Industrial Area) Act, unless such licensee undertakes to the
satisfaction of the Minister not to demand or exercise, in respect of the
manufacture by such licensee of the relevant approved product during such time
as he is an approved manufacturer under this Act, any privilege, right or
exemption available to him under the terms of that agreement. |
(2) In every order
made under subsection (1) there shall be specified- |
(a) a date as
the date on which production is deemed to begin for the purposes of this Act;
and |
(b) the factory
premises in respect of which the benefits in relation to customs duty mentioned
in paragraph (b) of subsection (1) of section 9 and the benefits in relation to
real property tax mentioned in paragraph (c) of subsection (1) of section 13
may be enjoyed. |
(3) On the
application of an approved manufacturer, the Minister may, in his discretion
and upon such conditions as he may think fit, amend an order made under this
section in respect of the factory premises specified in the order if he is
satisfied that it is necessary in order to promote the manufacture of the
approved product by the approved manufacturer that the factory premises so
specified should be varied, and any amending order made under this subsection
shall specify the factory premises as so varied in respect of which the
benefits mentioned in paragraph (b) of subsection (2) may be enjoyed after the
amending order has been made. |
6. Every application for the approval of a product or
of a manufacturer under this Act shall be addressed to the Minister in such
form, and shall contain such particulars, as may be prescribed. | Applications for approval. |
7. (1) Before any order is made under section 3 or 5
the Minister shall cause notice of the fact that he is about to consider
whether a product should be declared an approved product or a person should be
declared an approved manufacturer for the purposes of this Act to be given, at
the expense of the applicant, in not fewer than two (2) issues of- | Objections to proposals to approve a product or
manufacturer. |
|
(b) one
newspaper published and circulating in The Bahamas, |
at intervals
of not less than two (2) days. |
(2) Every notice
published as required by subsection (1) shall specify- |
(a) as respects
a proposal to make an order under section 3- |
(i) the
product proposed for approval; and |
(ii) the
raw materials used or to be used in the manufacture of such product; and |
(b) as respects
a proposal to make an order under section 5, the present or proposed location
of the relevant factory premises; and |
(c) such other
particulars of the product for which or, as the case may be, the person for
whom, approval is proposed as the Minister may consider necessary in order that
any interested person may object in writing to the product or person being so
approved. |
(3) Every such
notice as aforesaid shall also state a date on or before which any objection
shall be made by any interested person, so, however, that such date shall not
be earlier than the seventh day after the date on which the notice is last
published. |
(4) Every
objection in writing received by the Minister on or before the date stated in
the notice (or such later date as the Minister may in his direction allow)
shall be considered by the Minister before any order is made under section 3 or
5. |
(5) Where
subsequent to the publication of a notice under subsection (1) there is a
change in the circumstances regarding the raw materials contemplated by that
notice, then, on the application of an approved manufacturer, or a person who
proposes to manufacture an approved product, the Minister may, if he is
satisfied that it is necessary in order to promote the manufacture of the
approved product by the approved manufacturer or the person who proposes to
manufacture the proposed product, and upon such conditions as he may think fit,
alter the notice so as to include or exclude any raw material in respect of
which the change exists. |
(6) Subsections
(1), (2), (3) and (4) shall not apply in relation to- |
(a) any raw
material included or excluded under subsection (5); or |
(b) an amending
order made under subsection (3) of section 5. |
8. (1) Where any approved manufacturer fails or
neglects to commence to manufacture a relevant approved product on or before the
relevant date of production in quantities considered by the Minister to be
marketable quantities, or where any approved manufacturer has
commenced to manufacture a relevant approved product on or before the approved
date but fails or neglects to continue to manufacture such product for a period
in excess of three months, the Minister may by notice in writing require such
manufacturer, within thirty days after receipt of such notice, to establish to
the satisfaction of the Minister that- | Revocation of orders under section 5. |
(a) the failure
or neglect to commence to manufacture that approved product in marketable
quantities as aforesaid or to continue to manufacture that approved product for the
period aforesaid was due to some cause beyond the control of the manufacturer;
and |
(b) there is a
reasonable prospect of the manufacturer commencing to manufacture the approved
product in marketable quantities within such time as the Minister may consider
to be reasonable, |
and if the
manufacturer fails to satisfy the Minister accordingly, the Minister, if he
considers it expedient so to do, may, by order, terminate the approval of that
manufacturer in relation to that product either by amending or by revoking, as
the case may require, the order under section by which the manufacturer became
an approved manufacturer in relation to that approved product. |
(2) Where the
Minister is satisfied that any representations made to him by or on behalf of a
person in connection with the application of that person to be declared an
approved manufacturer in relation to an approved product were false in any
material particular or were made with intent to deceive or were otherwise not
made in good faith, and that such representations substantially influenced the
decision to declare that person an approved manufacturer in relation to that
product, the Minister may, by notice in writing, require that person, within
thirty days after receipt of such notice, to show cause to the satisfaction of
the Minister why the order under section 5 by which such person became an
approved manufacturer in relation to that product should not be revoked or
amended so as to terminate the approval of that person in relation to that
product; and, if that person fails to show cause accordingly, the Minister may,
if he considers it expedient so to do, by order revoke or amend accordingly the
order under section 5 by which that person became an approved manufacturer in
relation to that product. |
(3) Upon the
coming into force of an order made pursuant to subsection (1) or (2)- |
(a) the
manufacturer to whom the order relates shall, as respects the approved product
to which the order relates, cease to be an approved manufacturer for the
purposes of this Act, but without prejudice to the continued operation of section
10 and subsections (1) and (4) of section 12; and |
(b) without
prejudice to the continued operation of subsections (2), (3) and (5) of the
said section 12, the relevant factory premises shall, as respects that product,
cease to be factory premises for the purposes of this Act. |
9. (1) Every approved manufacturer manufacturing an
approved product shall, for so long as he remains an approved manufacturer, be
entitled to import into The Bahamas without payment of customs duty- | Relief from customs duty. |
(a) any
machinery or raw material not being a protected raw material necessary for the
manufacture of such product, if such machinery or raw material is imported for
the purpose of manufacture by the approved manufacturer of such product; |
(b) any
scheduled article, if such article is imported for the purpose of constructing,
altering, reconstructing or extending the relevant factory premises: |
Provided that no
article shall be imported free of customs duty under this paragraph if such
article is intended for the purpose of- |
(i) effecting
repairs to the factory premises; or |
(ii) effecting
repairs to, or, unless the Minister otherwise directs in any particular case,
replacing, any apparatus, machinery, appliance or equipment contained in the
factory premises. |
(2) On any
question whether any machinery or raw material is imported for the purpose
mentioned in paragraph (a) of subsection (1) or whether any scheduled article
is imported or intended for any purpose mentioned in paragraph (b) thereof, the
decision of the Minister shall be conclusive. |
(3) In paragraph
(a) of subsection (1) of this section the expression "protected raw
material" means raw material declared by the Minister by order to be a
protected raw material. |
(4)
The Minister may by order declare that a particular item is a raw material in
relation to the manufacture of any particular product for purposes of the Act. |
(5)
Any decision made by the Minister for purposes of subsection (4) shall be
final. |
(6)
For the purposes of this section, customs duties exemptions shall be available
only- |
(a) in respect
of materials used for plant construction and equipment on a one time basis at
commencement of registration and subsequently only upon the expansion or
replacement of the plant but got including spare or replacement parts; |
(b) on approved
raw materials as may be prescribed by the Minister. |
10. Every approved manufacturer who imports into The
Bahamas any machinery, raw materials or scheduled articles with the benefit of
any exemption from customs duty under section 9 shall- | Special provisions relating to machinery, raw
materials and scheduled articles imported free of customs duty. |
(a) upon being
required so to do by the Comptroller, cause such machinery, raw materials or
articles to be marked with such marks and in such manner as may be required by
the Comptroller; |
(b) upon being
required so to do by the Minister, keep such machinery, raw materials or
articles, and also such records of the production and disposition by the
approved manufacturer of the relevant approved product, in such form and
containing such particulars, as may be required by the Minister; |
(c) upon demand
made for the purpose, permit the Comptroller, or any person authorised by him,
at all reasonable times to inspect such records and to have access to any
factory, warehouse, storeroom or other premises under the control of the
approved manufacturer for the purpose of examining such machinery, raw
materials or articles or to satisfy himself of the accuracy of the particulars
contained in such records; and |
(d) submit to
the Minister periodical returns of the production and distribution of the
relevant approved product covering such period as the Minister may direct. |
11. Every approved manufacturer who imports into The
Bahamas any machinery, raw materials or scheduled articles with the benefit of
any exemption from customs duty under section 9 shall, upon being required so
to do by the Comptroller, enter into a bond in such form as may be directed by
the Comptroller with two sureties- | Bonding. |
(a) in the case
of raw materials, in double the amount of any customs duty which, but for the
provisions of this Act, would be payable on the importation of the total annual
amount of raw materials reasonably estimated by that approved manufacturer as
being required to be imported by him for the production of the approved
product; and |
(b) in the case
of machinery or any scheduled article, in double the amount of any customs duty
which, but for the provisions of this Act, would be payable on the importation
of such machinery or article, |
to the
effect that such raw materials, machinery or scheduled articles shall not be
used or applied otherwise than for the purpose specified in such bond; and if
any raw materials, machinery or scheduled articles are used or applied in
breach of any such bond they shall be forfeited and may be seized and proceeded
against in the same manner as goods liable to forfeiture under the
Customs Management Act or any enactment passed in amendment thereof or
substitution therefor, without prejudice to the right of the Comptroller to
recover as liquidated damages the penalty fixed by the bond or to the taking of
proceedings under subsection (4) of section 12: |
Provided that
where the full amount of customs duty which would have been payable on any
machinery, raw material or article but for the provisions of this Act (or such
part of that amount as the Comptroller considers reasonable in the
circumstances of the case) is paid to and accepted by the Comptroller in the
case of any proposed sale, gift or other disposition thereof, then in every
such case the Comptroller shall, by memorandum endorsed on the bond, cancel the
same in so far as the bond relates to such machinery, raw material or article. |
12. (1) No machinery or raw material imported into The
Bahamas with the benefit of any exemption from customs duty under section 9
shall be used for purposes other than the manufacture of an approved product by
an approved manufacturer or sold, given away or otherwise disposed of within
The Bahamas, and no scheduled article so imported shall be sold, given away or
otherwise disposed of as aforesaid, except- | Restriction on disposition of raw materials, etc.,
imported duty free and on use of factory premises. |
(a) in the case
of an assignment of the relevant factory premises, to the assignee of such
factory premises; or |
(b) upon the
approved manufacturer by whom such machinery, raw material or article was
imported paying, or giving security to the satisfaction of the Comptroller for
the payment of an amount equivalent to the amount of customs duty which, but
for the provisions of this Act, would have been payable upon the importation of
such machinery, raw material or article; or |
(c) after the
expiration of five years from the date of the importation into The Bahamas of
such machinery, raw material or article. |
(2) Subject to the
provision of subsection (3), no factory premises constructed, altered,
reconstructed or extended with the use of any scheduled article in respect of
which benefits under paragraph (b) of subsection (1) of section 9 have been
obtained (whether or not such factory premises have ceased to be used for the
manufacture of an approved product by an approved manufacturer) shall, without
the prior approval in writing of the Minister, be used, at any time within ten
years after the relevant date of production for any purpose other than that of
the manufacture of an approved product by an approved manufacturer. |
(3) Subsection (2)
shall not apply in relation to any factory premises if- |
(a) the said
premises have ceased to be used for the manufacture of an approved product by
an approved manufacturer; and |
(b) an amount
equal to the amount of the customs duty which, but for the provisions of this
Act, would have been payable upon the importation into The Bahamas of the
scheduled articles in question has been paid. |
(4) If any
approved manufacturer- |
(a) uses,
sells, gives away or otherwise disposes of any machinery or raw material; or |
(b) sells,
gives away or otherwise disposes of any scheduled article, |
imported as
mentioned in subsection (1) otherwise than as allowed by that subsection, he
shall be guilty of an offence and liable, on summary conviction, to a fine not
exceeding three times the value of the machinery, raw material or scheduled
article in respect of which the offence was committed. |
(5) If any person
uses, or permits another person to use, any factory premises in contravention
of subsection (2), he shall be guilty of an offence and liable, on summary
conviction, to a fine not exceeding three hundred dollars and, in default of
payment, to imprisonment for a term not exceeding six months, and in the case
of a continuing offence to a further fine of one hundred and fifty dollars in
respect of each day during which the offence continues. |
13. (1) Every approved manufacturer shall be entitled
to the following relief from taxes for the statutory period, that is to say- | Relief from other taxes. |
(a) from any
export tax in respect of any relevant approved product manufactured by the
approved manufacturer; |
(b) from any
income tax in respect of any profits or gains earned by the approved
manufacturer from the manufacture of the relevant approved product; |
(c) from any
real property tax in respect of the relevant factory premises. |
(2) In this
section- |
"export
tax" means the tax payable by any person under any enactment for the time
being in force relating to the taxation of exports; |
"income
tax" means the tax payable by any person under any enactment for the time
being in force relating to income tax; |
"real
property tax" means real property tax chargeable under the Real
Property Tax Act, or any enactment passed in amendment thereof or substitution
therefor; |
"statutory
period" means- |
(a) in relation
to any approved manufacturer in respect of whom the relevant date of production
is a date anterior to the first day of January, 1976, the period commencing on
the relevant date of production and ending on the thirty-first day of December,
1989; |
(b) In relation
to any other approved manufacturer, the period of fifteen years commencing on
the relevant date of production. |
14. Any approved manufacturer who fails without
reasonable excuse to comply with with any requirement lawfully made by any
person in the exercise of any power conferred upon such person by section 10 or
11 shall be guilty of an offence and liable, on summary conviction, to a fine
not exceeding one thousand five hundred dollars or to imprisonment for a term
not exceeding six months or to both such fine and imprisonment. | Offences against sections 10 and 11. |
15. Where any offences under this Act or any
regulation made thereunder committed by a corporation is proved to have been
committed with the consent or connivance of any director, manager, secretary or
other officer of the corporation he, as well as the corporation, shall be
deemed to be guilty of that offence and shall be liable to be proceeded against
and punished accordingly. | Offences by corporations. |
16. The Minister may make regulations for prescribing
anything required by this Act to be prescribed and generally for any other
matter or thing in respect of which he may consider it expedient to make
regulations for the purpose of carrying this Act into effect. | Regulations. |
17. (1) Subject to subsection (2), the
Industries Encouragement Act, 1951 is hereby repealed. | Repeal, saving and transitional. |
(2) Subject to
subsection (3), the said repeal shall not affect the validity of any order made
under section 3 of the said Industries Encouragement Act which was in force
immediately before the commencement of this Act, but every such order shall
continue in force, and the provisions of that Act shall continue in force in
relation to every such order, as if this Act has not been passed. |
(3) Where any
manufacturer, as defined in section 2 of the said Industries Encouragement Act,
owning a factory registered by virtue of such an order as is mentioned in
subsection (2) of this section, makes application for the purpose, the Minister
may by order under this section revoke such first-mentioned order and cancel
the operation of that Act in relation thereto. |
(4) Any
manufacturer on whose application an order has been made under subsection (3)
may apply to be declared to be an approved manufacturer by an order under
section 5 of this Act, and the Minister may, subject to the provisions of that
section and section 7, approve the application, but in such case the order
under the said section 5 shall make such supplementary provisions as to the
Minister may appear necessary or expedient for the purpose of reducing, in
relation to such manufacturer, the benefits available under this Act to an
approved manufacturer; and thereupon the provisions of this Act shall have
effect in relation to such manufacturer accordingly. |
18. Nothing contained in this Act shall apply so as to
derogate from the operation of the provisions of the Business Licence Act. | Derogation. |
FIRST SCHEDULE (Section 2) |
SCHEDULED ARTICLES |
All building
materials, tools, plant, equipment, pipes, pumps, conveyor belts or other
materials or appliances necessary for and used in construction and alteration
of factory premises, but not including, in New Providence, any equipment used
in the manufacture of wooden door frames, moulding, cement tiles or cement
blocks. |
SECOND SCHEDULE (Section 5) |
1. The Agricultural Manufactories Act
...................................................... |
Ch. 243
|
2. The Spirits and Beer Manufacture Act ................................................. |
Ch. 373
|
3. The Hotels Encouragement Act
.......................................................... |
Ch. 289
|
|
[i]*4. The
Cement Industry (Encouragement and Control) Act, 1961.
|
|
|