Draft SEZ Act_Nepal 2009

8/6/2019 Draft SEZ Act_Nepal 2009

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Bill prepared to manage the Special Economic Zone

Preamble

Since legal framework is deemed necessary to establish Special Economic Zones to

carry forward the nations industrialization process and support the pace of social and

economic development process,

The Constituent Assembly has promulgated this Act according to Interim constitution of

Nepal, 2063 (2006), Article 83, sub-article (1).

Chapter-1

Preliminary

1. Short Title and Commencement:

(1) This Act is named the "Special Economic Zone Act, 2006 (2064)".

(2) This Act shall come into force immediately.

2. Definition: Unless the subject or context otherwise requires, in the Act -

a) "Special Economic Zone" means the Special Economic Zone as designatedunder Section (3).

b) "Industry" means an industry included in the list as prescribed in Section (5).

c) "Infrastructure" means the infrastructure required for the development of SpecialEconomic Zone and the word also includes pharmacy, medical unit, post office,

banking service, baby care center, school and cafeteria to be built in such Zone.

d) "Investors" means any person, firm or company investing in industry and the

word also refers the foreign government or International Institutions.

e) "License" means the license to be issued under Section (7) for the establishmentof industries in the Special Economic Zone.

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f) "License holder" means an investor licensed according to Section (7).

g) "Authority" means the Special Economic Zone Authority established according to

Section (13).

h) Committee means operating committee appointed under Section (16).

i) Chairperson means the Chairperson of the Committee.

j) Member refers to the member of the Committee.

k) "Prescribed" or as prescribed" means prescribed or as prescribed in the Rulesframed under this Act.

Chapter-2

Provision relating to the establishment of Special Economic Zone

3. Can Determine Special Economic Zone:

(1) Nepal government can prescribe any area of Nepal as Special Economic Zone, after

publishing the notice in the Gazette, following recommendation of the Authority.

(2) The Special Economic Zone as prescribed under sub-section (1) can have export

processing area, special business area, tourism or entertainment area or any other area

as prescribed by the Nepal government.

Clarification: For the purpose of this section:

(A) Export Processing Area means the area within the Special EconomicZone developed to establish export oriented industry.

(B) Special Business Area means the area within the Special EconomicZone developed to collect goods for export, through import or collection within

the country, its storage, classification, packaging and assembling.

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(C) Tourism or Entertainment Area means the area within the SpecialEconomic Zone developed to establish industry related to tourism and

entertainment.

4. Proposing for Establishment of Special Economic Zone:

(1) According to section 3, if the Authority finds it appropriate for establishing Special

Economic Zone in any part of Nepal after carrying out necessary survey, then it will

submit the proposal before Nepal Government.

Clarification: For the purpose of this Section, Survey refers to survey carried out to

confirm the appropriate location for establishing the Special Economic Zone and the

word also refers to the feasibility study and engineering design of the Special Economic

Zone.

(2) While carrying out survey under Sub Section 1, the Authority in addition to other

things will also consider the access to road, telephone, electricity and water supply

facilities, sufficiency of the land, availability of workers and raw materials.

5. Preparing List of the Industries:

(1) The Authority shall prepare the list of industries that may be established in the

Special Economic Zone and make it public.

(2) While preparing list according to sub section (1), productive, tourism and

entertainment, Information Technology. Agriculture, Mines and Forest Products industry

appropriate from environmental perspective, economically feasible, and export oriented

in business sense, will be included in such list.

(3) The Authority should update such list periodically.

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6. Can carry out through Private Sector:

(1) The Nepal Government can ask the private sector to carry out development of

infrastructure of any Special Economic Zone on the recommendation from the Authority.

(2) According to sub section (1), other provisions related to development of

infrastructure, management and operation shall be as prescribed.

(3 Whatever is mentioned in sub section (1) and (2), services provided by government

agencies cannot be carried out through private sector.

Clarification: For the provision of this section, services provided by governmental

agencies means the services of Industry Registration, revenue collection or providing

discount, providing Visa, providing certificate of origin for any kind of goods or services,

etc.

Chapter 3Provisions Related to License

7. License related provisions:

(1) An investor interested to establish industry by investing prescribed capital in the

Special Economic Zone shall have to file an application before the Authority in the

format as prescribed.

(2) While examining the application as referred to in sub-section (1), the Authority, if

deems appropriate, shall issue license to the applicant within thirty days by charging the

prescribed fees.

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(3) Whatever is written in sub section (1), if any investor wants to establish any industry

not included in the list prescribed in section 5 but such industry is appropriate from

environmental perspective, economically feasible, and export oriented, then he can file

application before the Authority with mentioning those points.

(4) While examining the application as referred to in sub-section (3), the Authority, if it

deems appropriate to issue license after carrying out preliminary environmental test or

evaluating environmental effect, shall issue license to the applicant within thirty days of

carrying out such preliminary environmental test or evaluating environmental effect by

charging the prescribed fees.

(5) If more than one investor apply as prescribed in sub section (1) or (3) for

establishment of more than one industry of similar nature is not feasible in the Special

Economic Zone, the Authority will issue license to that investor who proposes bigger

investment, higher exports, capacity of providing more employment and who will make

maximum use of Nepali raw materials.

(6) If it is not possible to issue license while examining the application under sub section(2) or (4), then the Authority should inform the applicant citing reasons for not issuing

license within seven days of such decision made.

(7) Any applicant not satisfied with the decision of the Authority according to sub section

(6), then the applicant can make an appeal to Ministry of Industry, Commerce and

Supplies within 35 days of receiving such information. The decision of the Ministry shall

be final in this regard.

(8) If the Authority issues license as prescribed in sub section (4) for establishing any

type of industry , then such industry shall be considered to be included in the list as

prescribed in section (5).

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(9) Whatever is written elsewhere in this section, the investors that have taken license

or operating any industry, according to the prevailing law when this Act comes into

force, such investors cannot transfer to Special Economic Zone and operate industry on

the basis of same license, and such investors cannot transfer or use the machinery or

any other equipment already used to the Special Economic Zone.

(10) Whatever is written in the sub-section (9), there would be no obstacles in transfer

of the special type of industry, if the Nepal government publishes a notice in the gazette

and prescribes such industry.

8. Need to have Agreement: The License holder after obtaining license should sign anagreement with the Authority for establishment and operation of the Industry on the

following points:

a) Amount to be paid for lease or rent for use of building or land or services

(Electricity, Water etc.) necessary for the Industry,

b) Industry establishment and operation Date,

c) Quantity of exports of the Industry Production,

d) In case of foreign investment, the issue of technology transfer e) Other necessary points.

9. Tenure of the License & Renewal:

(1) The license issued for the industry shall remain valid for a period not exceeding thirty

years depending on the nature of the industry.

(2) The license holder wanting to renew the license should file an application for license

renewal before the Authority thirty five days before the license expiry.

(3) If any application is filed as prescribed in sub section (2), then the Authority shallrenew the license for a period of five years by charging fees as prescribed.

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(4) Other provisions related to renew of license shall be as prescribed.

10. Responsibility of the License Holder: It is the responsibility of the license holder

to abide by the agreement carried out with the Authority, this Act or rules framed under

this Act

11. Need to Export:

(1) The license holder will have to completely export the goods and services produced.

(2) Whatever is written in sub section (1), the license holder can sell up to 25 percent of

the produced goods or services as prescribed in the domestic market.

(3) If any license holder is to sell any goods or services produced as prescribed in sub

section (2) in the domestic market, then such information should be given to the

Authority stating the prescribed points.

(4) Whatever is written in sub section (1) and (2), in the case of tourism and

entertainment related industries, it shall be as prescribed.

12. Canceling the License:

(1) If the license holder does not renew the license within the prescribed time under sub

section (2) of section (9), then such license shall be cancelled.

(2) The Authority may cancel the license in any of the following circumstances:-

(a) If the industry as referred to in the agreement is not established and operated

within such period as prescribed,

(b) If responsibility according to section (10) is not fulfilled,

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(c) If more quantity of its production is sold in the domestic

market than that prescribed in section (11).

(d) If the industry misuses the facilities received.

(e) If it is proved that the industry has received facilities by

showing false details.

(3) Before canceling the license as referred to in sub-section (2), concerned Licensee

shall be given a reasonable opportunity to defend himself/herself.

(4) If the license is cancelled under Sub-section (1) or 2), the agreement concluded with

the License holder shall be deemed to be ipso facto terminated.

(5) If the license is cancelled under the sub Section (1) or (2), the License holder shall

not be entitled to make a claim for any kind of compensation for investment made in the

Special Economic Zone and he will not be entitled to any discounts and benefits from

the day of cancellation.

(6) If the license is cancelled according to the sub Section (1) or (2), the License holder shall have to manage its fixed property within one year from the date of such

cancellation.

(7) If the License holder fails to manage its fixed property within the period as referred to

in Sub-section (6), such property shall ipso facto become that of the Nepal Government.

(8) The Authority, before canceling the license under sub section (2), can carry out

necessary investigation by itself or through any authorized person.

(9) If the License holder is not satisfied with the cancellation of license according to sub-

section (2), the license holder can appeal before the concerned Appellate Court within

thirty five days of cancellation of license.

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Chapter 4

Establishment of the Authority and Provisions related to Work, Duty

and Rights

13. Establishment of Authority:

(1) Special Economic Zone Authority has been established for the construction and to

take care of infrastructure in the special economic zone, to monitor and regulate the

industries and to provide services through one window system.

(2) The main office of the Authority will be located in Kathmandu and the authority for

the operation and management of the special economic zone can open branch offices

as required.

14. Authority to remain as an autonomous body:

(1) Authority will be an accountable, integrated, autonomous and organized institution.

(2) The Authority, to carry out its work, will have its own separate seal.

(3) The Authority, like an individual, can obtain, consume and sell movable and fixed

assets or manage through any other way.

(4) The Authority, like an individual, can file complains, and similarly complaints can be

lodged against the Authority.

(5) The Authority, like an individual, can make agreement and use authority according to

agreement and carry out responsibility.

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15. Work, Duty and Rights of the Authority: Besides the work, duty and rights of the

Authority written elsewhere in this Act, the Authority will have the following work, duty

and rights:

(a) Recommending Nepal Government in the policy regarding establishment,

development and operation of the Special Economic Zone,

(b) Formulating necessary standards for the establishment and infrastructure

development of Special Economic Zone,

(c) Determining standards for lease or rent amount, fee or charges on behalf of the land,building, service or facilities available to Industries by the Authority.

(d) Recommending for service-facility or tax discount for the industries according to this

act.

(f) Renting out land, buildings to the industries.

(g) Taking action against industries established in the Special economic zone if they are

found working against the rules and Acts during the course of periodic inspection

(h) Managing security provisions in the Special Economic Zone.

(i) Managing services of Bank, Post Office, Health Post, Entertainment Places etc. as

necessary in the Special Economic Zone.

(j) Allowing investors to import necessary machinery, tools, equipments, vehicles, raw

materials, packaging tools etc on the basis of Investment Proposal Approval.

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(5) Salary, Facility, other terms and work, duty and rights will be as prescribed.

17. Committees meeting and decision:

(1) The meeting of the Committee will be held as required.

(2) The meeting of the Committee will be held at a date, time and venue prescribed by

the Chairperson,

(3) The quorum for the meeting will be deemed complete if there is presence of morethan 50 percent of members,

(4) The meeting of the committee will be chaired by the Chairperson and in the absence

of the chairperson it will be chaired by any member selected by themselves.

(5) In the Committee's meeting, the decision of the majority hold; In case there are

equal votes on both sides, the vote of the person chairing the meeting will be decisive.

(6) The senior employee of Committee will work as a secretary of committee.

(7) The Committee can invite any concerned expert or official as an invitee

(8) Other working procedures of the committee meetings will be as determined by the

Committee itself.

18) Allowances and other facilities of the member: The salary, allowance and other

facilities of the member and other invitee experts or officials shall be as prescribed.

19) Provision related to Employees:

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(1) For the operation of the committee, there shall be necessary number of employees.

(2) The appointment, salary, facilities and other service terms of the committee

employees will be as prescribed.

(3) The Nepal Government shall provide necessary employees for the committee until

the time employees are recruited under sub section (1).

(4) Whatever is written in sub section (1), (2) and (3), the employees working at Special

Economic Zone Project, at the time of issuing this act, shall be transformed intoemployees of Special Economic Zone Authority on the basis as prescribed.

Chapter-6

Provision related to Privileges Received by the Industries in the

Special Economic Zone

20. Special Treatment: The business transaction carried out in the Special Economic

Zone, the tariff, fee and tax on goods or services produced in the Special Economic

Zone shall be given special treatment similar to that of outside scope of taxes.

21. No Nationalization shall be made: No industry established and operated in the

Special Economic Zone shall be nationalized

22. Discount on the lease or rent of land or Building : The land or building rented for

the Industry shall be entitled to 50 percent, 40 percent and 25 percent discount in the

first, second and third year respectively.

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23. Exemption from Income Tax:

(1) Industry established in the Special Economic Zone shall be exempted fully from the

income tax chargeable under the prevailing laws for 5 years from the date of

commencement of commercial transaction or production and fifty percent for next five

years. In case the industry uses 60 percent of domestic raw materials, the fifty percent

discount will hold for 10 years, after first 5 years of total waiver.

(2) Notwithstanding anything contained in sub section (1), the industry established in the

Special Economic Zone in the mountainous or hilly districts prescribed by the Nepal

Government will be entitled to complete income tax holiday for 10 years from the date of

commencement of commercial transaction and exempted fifty percent thereafter, for another 10 years.

(3) Whatever is written in the existing law, the Industries shall receive following income

tax discounts as follows:

(a) There will be no income tax in the dividend amount distributed by the industry for 5

years from the date of commencement of commercial transaction.

(b) After the completion of the duration according to part (a), the industry shall be

entitled to fifty percent income tax discount for three years there after.

(c) There will be fifty percent income tax on the income earned by the foreign investors

on foreign technology and management service fees and royalty.

(4) Whatever is written elsewhere in this section, the industry transferred to the Special

Economic Zone under section 7, subsection 10, will not get the discount on income tax

according to this section.

24. No Value Added Tax:

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(1) The License Holder shall be entitled to full exemption from Value Added Tax

chargeable while importing machinery, equipment, spare parts of machine, raw

materials necessary for the industry and up to three vehicles for transporting goods for

one industry.

(2) No Value Added Tax shall be levied on the business of goods or services

transaction between the industries within the Special Economic Zone.

(3) No Value Added Tax shall be levied on such good or services where the License

holder purchases goods or services necessary for the industry from the internal market.

25. No Excise duty: No excise duty shall be levied on the goods to be produced by

the industry.

26. Exemption from Customs Duty:

(1) The License holder shall be entitled to exemption from customs duty for importing

the goods for industry as follows:

(a) On the raw materials, assisting raw materials, packaging materials and materials

used for production on the basis of bank guarantee,

(b) Necessary plant, machinery equipment, instruments, tools and spare parts for

industry and up to three vehicles on the basis of size and nature of industry.

(2) The license holder can take the tradable goods in domestic market, out of the

Special Economic Zone after paying Customs Duty Charge and other Tax on them

under section 11, sub section (2)

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(3) If any importer sells any goods to the industry affiliated to Special Economic Zone,

the custom duty and tax of such goods should be returned to the importer by the

customs office.

(4) The license holder should follow the process according to notice published by Nepal

Government on the Gazette while transferring the ownership of exported goods with

custom exemption.

27. Exemption from Local tax: No local tax of any kind shall be levied on goods or

service produced by the Industry, and while importing machinery equipment, machinery

spare-parts, raw materials, and other materials necessary for establishment of theindustry, and up to three vehicles for transporting goods for one industry .

28. Facilities equivalent to Export: If any firm, company or industry established

under prevailing laws sells raw materials or any products to the industry established in

the Special Economic Zone, such firm, company or industry shall be entitled to enjoy

the facilities equivalent to exporting the items.

29. The foreign investment May Be Repatriated:

(1) The foreign investor investing foreign currency in the Special Economic Zone shall

be entitled to repatriate the following amount out side Nepal:-

(a) Amount received from selling share of the industry having foreign investment in

full or part,

(b) Amount received as profit or dividend for foreign investment,

(c) Amount received as payment of principal amount of the foreign loan and interest

thereon.

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2) If the License holder investing under sub section (1), has mentioned in the agreement

under section 8 to repatriate money in certain currency, then he/she shall be entitled to

repatriate as stated.

30. Account May Be Opened and Transaction Carried out in Foreign Currency:

(1) The License holder, on recommendation of the Authority, can open account in

foreign currency.

(2) The License holder establishing the industry in the Special Economic Zone shall

be entitled to carry out transaction in foreign currency with respect to its industry.

31. Provision on Visa:

(1) Government of Nepal shall issue non-tourist visa up to six months to the foreign

nationals who visit Nepal to carry out study and research with a view to invest in the

industry.

(2) Government of Nepal may issue business visa to the foreign investor or family

dependant on such investor or authorized representative or the family dependent on

such authorized representative to reside in Nepal for a period that the foreign

investment remains continued in the industry.

However, Government of Nepal shall provide residential visa to the foreign investor or

his/her dependant family investing once at least 10 million US dollars or convertible

foreign currency equivalent to the same for a period that such investment remains

continued.

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(3) Government of Nepal shall, on recommendation of the Authority, issue non-

tourist visa to the foreign employee or workers who arrive to work in the industry under

Section 35.

32. Other Facilities:

(1) The following additional facilities shall be made available to the industry established

in the Special Economic Zone.

(a) The use of Bonded ware house as stated in the

Agreement,

(b) Sub-contracting within Industries(c) Deducting depreciation in an accelerated rate

2) The industry shall be entitled to other facilities, by recommendation of Authority, as

specified by the Government of Nepal from time to time.

33. Guarantee of Facilities and Concessions:

(1) No provision shall be made in a manner that the facilities that are being enjoyed

or may be enjoyed by the industry established in the Special Economic Zone according

to this Chapter at establishment of such industry shall be cut off or may have any kind of

adverse effect thereon.

(2) If there is any provision in this Act or other prevailing laws contrary to Sub-

section (1), then such provisions will not hold for such industries to the extent that may

have adverse effect thereon.

34 . No Exemption and Concessions Shall Be Received:

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(1) Whatever is written elsewhere in this chapter, if any industry established in the

Special Economic Zone other than tourism or entertainment industry fails to export

products according to Section (11) in any fiscal year, such industry shall not receive

exemption and privileges concessions to tax to be received pursuant to this Act for the

said fiscal year.

(2) The quantity produced by any industry in any fiscal year for the purpose of Sub-

section (1) shall be determined as prescribed on the basis of the production capacity of

such industry and the quantity of raw materials used by such industry.

(3) The Authority shall maintain updated records to determine the quantity producedaccording to Sub-section (2) and make arrangement of monitoring the same.

Chapter-7

Provisions related to workers and employees

35. Recruitment of workers or employees:

(1) The license holder should fulfill the required workers or employees for the industries

from among the Nepali Citizens.

(2) While fulfilling the required number of workers or employees for the industries under

sub section (1), it can do so by publicly advertising and any appropriate manner itconsiders.

(3) While carrying out public advertisement under sub section (2), if Nepali worker or

employee is not available for particular expertise, then the license holder should state

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out its proof and apply for the permission before the Authority for recruiting Non Nepali

Citizen as worker or employee.

4) While examining the application filed under sub section (3), if it is seen that the stated

worker or employee is not available from the Nepali Citizen, then the Authority can

approve the appointment of special skilled technical worker or employee for a maximum

of seven years and in the case of other worker or employee for a maximum of five

years.

But, in the case of workers and employees related to Management Level and Modern

Technology (state of art), the Authority can approve to employ them for a longer period.

Clarification: For the purpose of this provision, Management Level refers to that

person responsible to take final decision with regards to any activity in any industry and

it also refers to person appointed as chief of any unit of the industry who is the final

authority to use responsibility or rights in the related activities.

(5) The license holder employing Non Nepali nationals should eventually work for capacity building of Nepali citizens and replace them at appropriate time.

36. Minimum salary of the Workers and Employees:

(1) The minimum salary and facility of workers and employees working in the Special

Economic Zone shall be as determined by the Authority.

(2) The foreign worker or employees will be entitled to repatriate 60 percent of their net

income in convertible foreign currency.

37. Will be as per Agreement:

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(1) Whatever is written in the existing laws, with regards to salary, facilities, health,

security, work time, code of conduct, and welfare measures of the workers and

employees in industries within the Special Economic Zone shall be as per the

agreement between Industry and Worker or Employee, which is made within the scope

of this Act.

(2) Whatever is written in the sub-section (1), the other social security provisions would

be as per the related industry norms, for the workers and employees working in the

industries of the Special Economic Zone.

(3) The industry will have to inform the Authority about social security provisionsaccording to sub-section (2) and Authority can monitor whether such arrangements are

followed or not.

38. Grievance Management committee:

(1) A committee would be formed as follows, in every Special Economic Zone to

manage the grievances of the workers and employees working in industries in those

Zones:(a) One officer level employee in the offices of related Special Economic Zone,

(b) A representative of the investors from the related Special Economic Zone,

(c) A representative of the labour unions from the related Special Economic Zone.

(2) The side that does not agree to the verdict given by the committee under sub-

section (1), can lodge a complaint at Labour court.

39. Should not carry out work that causes loss to the Industry: The workers and

employees working in the industry established in the Special Economic Zone should not

carry out any work that would have negative impact upon the industry and its

production .

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Chapter 8

Provision related to Punishment and Appeal40. Punishment:

(1) If the license holder sells the produced goods and services in excess amount than

that prescribed in section 11 (2) in the domestic market then the Authority shall charge

appropriate fine.

(2) The Office may fine a sum up to Rs. 100,000 to the industry that breaches this Act or

Rules framed hereunder or the agreement concluded under this Act, depending upon

the nature of breach.

(3) If anyone incurs loss because of a license holder breaching this Act or Rules under

it, then the Authority shall make the concerned industry to reimburse the loss amount.

(4) The Authority shall provide appropriate opportunity for clarification to the concerned

license holder before initiating action against them.

41. Can File Appeal: The License holder who is not satisfied with the decision taken

under section 40, may file an appeal with the concerned Appellate Court within thirty

five days of receipt of the notice thereof.

Chapter 9

Treasury and Audit

42. Treasury of the Authority:

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(1) There will be a separate treasury of the Authority and following types of funds will

remain in that treasury:

a) Fund obtained from Nepal Government,

b) Loan, grant or Assistance obtained from the foreign government or international

organizations,

c) Fund available for the Authority from the rent, lease or sale of its properties.

d) Service Fee amount from the services provided by the Authority to the Industries

e) Funds from other sources

(2) While obtaining fund according to sub section 1 (b), it is necessary to take approval

from Nepal Government.

(3) The fund obtained by the Authority under sub section 1 will be deposited in any

commercial bank in Nepal.

(4) All the expenditures of the Authority will be borne by the treasury according to sub

section 1.

(5) The operation of the treasury of the Authority shall be as prescribed.

43. Authority's Account and Auditing:

(1) The accounts of the Authority will be maintained as per the existing structure and

system of the Nepal Government.

(2) The audit of the Authority shall be carried out by the Office of the Auditor General.

(3) Nepal Government can, at any time, examine the accounts of the Authority if it

deems so.

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Chapter 10

Miscellaneous

44. Transfer May Be Made:

(1) The License holder may, sell ownership of its share in the industry in full or part and

transfer it to any other person, informing the Authority 35 days prior to doing so.

(2) If the industry is transferred under Sub-section (1), the conditions of the agreement

concluded between the Authority and the license holder at the time of establishment of

the industry shall be deemed to be applicable to the person receiving the ownership.

45. Making fund available to the Local Agency: The Authority shall make available

10 percent of the lease or rent amount available from the Industry in the Special

Economic Zone to the concerned municipality or Village Development Committee.

46. Environment Impact Assessment or Evaluation:

(1) Notwithstanding anything mentioned in the prevailing laws, the authority shall, itself,

exercise all right enjoyed by any other institution concerning environmental impact

assessment and preliminary environmental audit to be made under prevailing laws with

respect of the industry to be established in the Special Economic Zone.

(2) The standards of Environmental Impact Assessment or Preliminary EnvironmentalAudit under Sub-section (1) shall be as fixed by the authority.

47. Inspection, Monitoring and Supervision:

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(1) The Authority shall inspect, monitor and supervise the industries in the Special

Economic Zone.

(2) While carrying out Inspection, Monitoring and Supervision according to sub section

1, if the Authority finds that any license holder is carrying out any action against this Act

or rules under this Act, then the Authority can give necessary direction to the license

holder.

(3) It shall be the duty of the concerned license holder to abide by the direction given by

the Authority, under sub-section (2).

48. Submitting Report:

(1) The License holder shall submit annual export data of goods and services and the

annual report of income and expenditure incurred by the industry operated by it to the

Authority within three months from the date of completion of each fiscal year.

(2) The Authority should submit its annual report to Nepal Government within four months from the end of the fiscal year.

(3) Besides other things in the report according to sub-section 1, the report should also

include the achievement from the establishment of such special economic zone, its

impact upon the national economy and the work executed by the Authority throughout

the year.

(4) Nepal Government can publicly publish the annual report pursuant to sub section 2.

49. Delegation of Powers:

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(1) According to this Act, in relation to service and facilities given to the investors, the

officer executing his/her power, can delegate the power to the Authority, remaining

under the prevailing laws.

(2) The Authority may delegate some of its powers under this Act to the Chairperson,

member or any authorized employee as required.

50. Shall be as per this Act: Whatever is written in the existing laws, for things stated

in this Act, it shall be according to the Act and for other it shall be as per the existing

laws.

51. Can provide Direction: Nepal government can give necessary direction to the

Authority for the operation, management and development of the Special Economic

Zone and it shall be the duty of the Authority to comply with such directives.

52. Contact with Nepal Government: The Authority while making contact with Nepal

Government should make it through the Ministry of Industry, Commerce and Supplies.

53. Formulating and Implementing Directive: The Authority, for the management of

industries established in the Special Economic Zone, and to solve the problems arising

between industries and workers and employees, can formulate and implement

necessary directives.

54. Authority to Frame Rules: Nepal Government can formulate necessary rules for

implementing the objective of this Act.

Documents

Draft SEZ Act_Nepal 2009