Freeport of Mauritius

Freeport Act 2004

The Freeport Act pertains to the operation of companies in the Freeport zones of Mauritius. The act defines the operational and regulatory obligations of all companies engaged in this sector, including developers and operators. Freeport zones are dedicated areas exclusively destined for Freeport operations and are precisely defined and identified in the Freeport Act. These areas are normally under the control of the Customs and Excise department of the Mauritius Revenue Authority.

Freeport developers are responsible for infrastructure development of the Freeport zones, and they are responsible to ensure that the allocated zone is properly enclosed and that enclosures are properly maintained and guarded.

Companies may apply for Freeport certificate to operate in these zones, provided they carry out the following activities:

• Warehousing and storage
• Breaking bulk
• Sorting, grading, cleaning and mixing
• Labeling, packing, repacking, and repackaging
• Light assembly
• Minor processing
• Ship building, repairs and maintenance of ships and aircrafts
• Storage, maintenance and repairs of empty containers
• Freight forwarding services
• Quality control and inspection services

FREEPORT LICENSE

Domestic companies wishing to engage in the import, export and re-export business may use the Freeport zone of Mauritius as an effective international transit base.

The Board of Investment acts as a centralised point of contact for all activities related in the Freeport zone, including processing of applications for licences. Customs and Excise Department is, however, the licensing body and supreme authority which ensures compliance with legal provisions. Following the issue of the Certificate of Incorporation by the Registrar of Companies, any director/shareholder or empowered agent may apply for a Freeport License, issued after approval of authorities and payment of the annual license fee of Rs10,000.

The Freeport Act 2004 is the law relating to the Freeport sector. Enacted in November 2004, the Act provides for a new legal framework to regulate the Freeport activities and, for the Board of Investment, in collaboration port and airport authorities and other relevant authorities, to promote, coordinate and encourage locally and internationally, the development of Freeport in Mauritius with a view to transforming it into a logistics, marketing and distribution hub in the region. There are more than 350 registered Freeport companies in the country, with a turnover value of over US$ 720 millions. The volume of transaction amounted to 9,225 containers accounting for 216,385 tons during the financial year 200-2005.

Freeport companies are imposed a geographical restriction to the sense that they are allowed to do business exclusively in approved Freeport zones, duly protected and permanently under the control of the Customs and Excise department.

Holders of a Freeport license can engage in the following lines of activities: