Article 15 - Designated Zones

1. Excise Goods stored, preserved or processed in a Designated Zone or transferred between Designated Zones will be treated as not released for consumption pursuant to Article (12) of this Decision.

2. For the purposes of Article (13) of the Decree-Law, a “Designated Zone” is any of the following:
a. A free zone that meets the following conditions:
1) Has security measures in place to restrict entry and exit of individuals and movement of goods to and from the Designated Zone.
2) The Designated Zone is controlled and supervised by a Customs department.
3) A Warehouse Keeper been appointed for the Designated Zone.
b. Any area specified by the Authority provided it meets the following conditions:
1) It is a specific geographic area;
2) It has security measures in place to restrict entry and exit of individuals and movement of goods to and from that area, according to controls specified by the Authority.
3) A Warehouse Keeper has been appointed for it.

3. The Designated Zone shall be registered via an application submitted by the Warehouse Keeper to the Authority pursuant to the procedures determined by the Authority.

4. The Authority may request a financial guarantee for the registration of each Designated Zone as it specifies.

5. Every Person appointed as a Warehouse Keeper shall be required to control and supervise the Designated Zone and the transfer of goods without release for consumption to another Designated Zone in accordance with the following conditions:
a. Keep records of Excise Goods held in the Designated Zone at any time in accordance with Clause (8) of this Article.
b. Keep evidence of Excise Goods being intended for transfer to another Designated Zone without release for consumption in accordance with Clause (8) of this Article.
c. Any such other records as the Authority may specify to be kept in respect of each Designated Zone supervised by the Warehouse Keeper.

6. The records referred to in paragraph (a) of Clause (5) of this Article may be kept by other persons, but will be the responsibility of the Warehouse Keeper.

7. Excise Goods that are Imported into, received, produced, stored, preserved, processed or otherwise held in a Designated Zone will not be subject to Tax until those goods are released from the Designated Zone or are deemed to have been released for consumption under Article (12) of this Decision.

8. The Warehouse Keeper shall be required to retain documentary evidence as specified by the Authority and shall provide such evidence to the Authority on request, relating to the keeping and treatment of goods in a Designated Zone. The evidence retained should be sufficient to identify the following:
a. The stock levels of the Designated Zone at any given time.
b. The value and quantity of Excise Goods entering the Designated Zone.
c. The value and quantity of Excise Goods leaving the Designated Zone and released for consumption.
d. The value and quantity of Excise Goods transferred to another Designated Zone, including details of that Designated Zone.
e. The value and quantity of Excise Goods transferred from the Designated Zone for Export.
f. The value and quantity of Excise Goods produced within the Designated Zone.

9. A transfer of goods from one Designated Zone to another in the State shall not be subject to Tax where:
a. The goods, or part thereof, are not released for consumption during the transfer;
b. The goods are not in any way used or altered during the transfer;
c. The transfer is undertaken in accordance with the rules and regulations as established by the Authority.

10. In accordance with Article (14) of the Decree-Law, a transfer of Goods between Designated Zones within the State must be undertaken in accordance with the following procedures:
a. The Warehouse Keeper responsible for the Designated Zone from which the Excise Goods originate must issue a document containing the following particulars:
1) The type of Excise Goods to be transferred.
2) The quantity and value of Excise Goods to be transferred.
3) The value of Due Tax in the event the Excise Goods were released for consumption in the course of the transfer to another Designated Zone.
4) The details of the Designated Zone to which the Excise Goods will be transferred and the Warehouse Keeper responsible for it.
b. The Warehouse Keeper responsible for the Designated Zone where the Excise Goods have been received must confirm receipt of the Excise Goods.
c. The Excise Goods must be accompanied with the document issued pursuant to paragraph (a) of this clause when transferring the Goods.
d. The document issued pursuant to paragraph (a) of this clause in relation to the transport must be provided to the Authority upon request.

11. For the purposes of Articles (12) and (14) of this Decree-Law, Excise Goods may be transported between Designated Zones within the State or from a Designated Zone for Export purposes if the following conditions are met:
a. The Warehouse Keeper of the Designated Zone from which the Excise Goods originate shall remain responsible for the goods until they are received by the Warehouse Keeper at the receiving Designated Zone or until they are exported.
b. The Person who is responsible for transferring the Excise Goods must be either a Taxable Person or a Warehouse Keeper for any of the two areas.
c. If the Taxable Person is transporting the Excise Goods, he must obtain prior consent from the Warehouse Keeper to transport these goods. The Warehouse Keeper may refuse to grant such consent.
d. The Warehouse Keeper must retain copies of all approvals granted to Taxable Persons to transport Excise Goods.a