On 25 March 2024, the Prime Minister issued Decree No. 24 of 2024 (the “Decree”). The Decree Allowing the temporary exit of tools, supplies, machines, equipment, devices, and equipped means of transportation for special uses permitted from the Free Zone into the country. These uses are either for a project’s account or to third party rentals.
Requirements for a Temporary Exit of Tools and Machinery from Free Zone
Providing a pledge to pay all customs taxes, value-added tax and other taxes and fees due if not re-exported from the General Authority for Investment and Free Zones (GAFI); or from the Supreme Council for Media Regulation (SCMR) for the Media Public Free Zone projects which include practicing one of the activities regulated by the Law on Press, Media, and the Supreme Council for Media Regulation.
Providing a certificate from the General Authority for Investment and Free Zones (GAFI) which confirms the nature of the activity and the necessity of practicing it requires the exit of these items into the country.
Providing a pledge by the concerned party not to engage in another activity inside the country with these items other than the licensed activity within the Free Zone. If these items are operational, the provisions stipulated in the Value Added Tax Law and its executive regulation shall apply, along with all other legal rules prescribed in such a case. In case the the equipment are rented to third parties, the general customs rules in force shall apply.
Duration of Temporary Exit of Tools and Machinery from Free Zone
The temporary exit period is limited to six (6) months, which may be extended for other periods with the approval of the Head of the Customs Authority or his delegate. In case of exceeding the period, the general provisions stipulated in the Customs Law and its executive regulation shall apply.
The contributor to this article is Mag. Mona Osama, Partner.