LAW NO. (26) OF 1995
CONCERNING FREE TRADE ZONES
: In accordance with
The constitution -
Decree law no. 3 of 1955 concerning kuwait income tax as amended -
law no. 15 of 1960 - promulgating the commercial companies law as amended-
Law no. 38 of 1964 concerning labour in private sector as amended -
Law no. 43 of 1964 concerning importation -
Decree law no. 133 of 1977 - establishing kuwait ports authority as amended -
Law no. 13 of 1980 concerning customs -
And the decree law no. 68 of 1980 - promulgating the lacommerce as amended
The national assembly passed the following law, which we hereby sanctioned and promulgated.
Pursuant to a decision by the council of minisrers, one free trade zone or more may be established, such a decision shall specify the locations and the boundaries. of such zones
Pursuant to a decision by the minister of commerce and industry, the following: activities may be licensed in the free trade zones
A) Storage and exhibiting goods of whatever type, origin or source.
B) Performing operations that may require any changes in the condition of the goods existing in the free zones and processing the same according to commercial. exchange and markets demands
C) Practising any profession that an activity may require as well as services needed by the staff working within the free zone.
Entry, storing and exhibiting damaged or banned goods inside the free zones shall be prohibited. in case of violation hereto the applicable laws and regulations. shall be enforced
The license mentioned in article (2) shall be included a description of the location for practising the activity inside the free zone, the objectives for which the license has been granted, the duration of its validity and the amount of the. financial guarantee to be paid by the licensee
The following shall be exempt from taxes and customs duties:
A) Projects established in the free zones as well as the profits accured from activities practised therein.
B) Goods which are imported to the free zones or exported therefrom.
C) Tools and equipment of whatever type, required for processing work inside the free zones.
The foregoing shall be applicable without prejudice to the provisions stipulated. in this law
The goods admitted to the free zones shall not be subject to any restrictions with regards to the duration of stay, except in cases where discharge of such goods in necessitated due to their nature or failure of owners to pay their financial obligations or otherwise owners violation to the provisions of this law.
Furthermore, exports and imports to the zone shall not be subject to the restrictions. imposed on importation and exportation
The officials to be nominated by a decision of the minister of commerce and industry shall be entitled to enter the free zones and its installations and to control any violation to the provisionsof this law and its executive regulations. they shall be entitled to seek the assistance of the police force in this regard.
Puruant to provisions of this law, the licensee shall be committed to insure the buildings, plants and equipment against all accidents. also he shall be obliged to remove the same at his own expense within the period specified vide a decision by the minister of commerce and industry starting from the date of expiry of the. license
Entry to the free zones or residence therein shall be in accordance with the terms and conditions to be issued vide a decision by the minister of commerce and industry. such order shall also determine the charges for occupying locations. where goods are kept
Property investment within the free zones shall not be subject to attachment, confiscation or sequestration except through judicial channels.
The ministry of commerce and industry shall assume supervision of the free zones, and it may entrust the management of these zones to specialized bodies in the private sector following the approval of the council of ministers and according to conditions. determined by the council
The party authorized to manage free zones shall, for the purpose of performing its assigned functions and carrying out its duties and pertinent obligations, seek the assistance of all competent government authorities of specialization, and such autorities shall provide the required facilities within the limits determined by the. council of ministers
The provisions of laws related to health and agricultural quarantine, enviroment protection as well as those related to protection and safeguarding against epidemics and diseases shall be applicable in the free zones. also provisions of kuwaiti law shall be applicable regarding issues which are not provided for in this law.
Agreement may be reached for the settlement of disputes arising among the projects establishied at the free zones or between them and the authority managing these zones or with other authorities and administrative bodies concerned through arbitration. an arbitration panel shall be formed of one arbitratorfor each of the disputing parties as well as an umpire to be elected by the said arbitrators. should the arbitrators fail to agree to the election of the umpire within thirty days from appointing the last arbitrator, such umpire shall be elected upon the request of either party pursuant to a decision by the minister of commerce and industry.
The arbitration panel shall set forth the rules of its own procedures without being bound to the rules of civil and commercial pleadings law except those pertinent to guarantees and litigation principles. panels decisions shall be issued by majority vote and shall be final and binding on both parties, applicable exactly as final. judgements
Such panel shall determine the expenses of arbitration and the party which shall. bear them
Without prejudice to any severer penalty stipulated by another law, any person violating any of the provisions hereof or its executive regulations and decisions shall be penalized to a fine not exceeding. five thousand dinars
However, conciliation may be effected in such crime. the person who prepares the official record, having confronted the defendant with his crime, shall offer him to conciliate substantiating the same in his record. the defendant desirous of conciliating shall pay, within five days from receiving the conciliation offer, half of the maximum fine imposed for the crime ascribed to him, which shall not exceed five hundred dinars. conciliation shall, result in the abatement of the panel action with all its consequences. however, conciliation shall not be allowed in. case of recurrence of the violation
The minister of commerce and industry shall issue the decisions and the executive. regulations related to the free zones
The ministers, each within his own competence, shall implement this law.
AMIR OF KUWAIT
JABER AL-AHMED AL-SABAH
ISSUED AT BAYAN PALACE ON SAFAR 3 1416 A.H
CORRESPONDING TO: JULY 1, 1995