Private Member's Bill - Amir Peretz, M.K.
No. 129

Free Export Processing Zones Law, 5745-1989

Definitions

1. In this Law -

"ZONE" - A Free Export Processing Zone (F.E.P.Z.), declared as such under sec. 3;

"ESTABLISHMENT AND OPERATIONS" of the Zone - Development of its infrastructure, construction of buildings and their sale or lease to entrepreneurs and investors, provision of services to productive managerial, technical and municipal enterprises, all or part of these;

"COUNCIL" - The Council for Free Export Processing Zones, appointed under sec. 2;

"CONCESSIONAIRE" - A person to whom the Council has granted a concession under sec. 3(2);

"USER" - A person who owns an enterprise or service in a Zone, or has applied for and received approval from the Council to establish an enterprise or service in a Zone;

"PLAN" - A plan for the Establishment and Operation of a Zone, and/or of an enterprise in the Zone;

"THE MINISTERS" - Two or more members of the government appointed by the government to implement this Law;

"THE COMMITTEE" - The Economics Committee of the Knesset.

2. (Appointment of the Council and Composition)

1. The government will appoint the Council for Free of the Export Processing Zones.
2. The members of the Council will be as follows:
   1. Representatives of the public, experts in commerce, industry, finance and free trade zones;
   2. Representatives of the public from the Negev, Jerusalem, and the Galilee regions;
   3. Representatives of the Local Authorities Center;
   4. Representatives of the General Labor Union;
   5. Representatives of the Manufacturers' Association of Israel;
   6. Representatives of government ministries which the government finds appropriate;
   7. Representatives of the Jewish Agency

3.(Duties of the Council)The duties of the Council will be to promote the development of Zones and Plans, including -

1. to initiate and allocate Zones, to approve proposals for their Establishment and Operation in consideration of general economic needs and which may accrue to the advantage of the Negev, Jerusalem, and Galilee, provided that such approval be given on condition that productive enterprises in the Zone shall be for purposes of export only;
2. to grant Concessions to entrepreneurs to Establish and Operate Zones;
3. to grant, through the Concessionaire, approval to Users;
4. to approve Plans and supervise the Establishment and Operation of Zones subject to the terms of the Concessions;
5. to cancel Concessions and approvals; always subject to this law and to rules prescribed by regulations hereunder.

4. (Conditions for Concessions and approval)

1. A Concessionaire must be a company registered in Israel, of which at least two directors may be appointed by the municipal council in which the Zone is located.
2. A User must be a company registered in Israel.

5. (Priorities )

1. The Ministers, with the approval of the Committee, may prescribe by regulation -
   1. conditions and time limits for the granting of licenses required for the implementation of a Plan and for the Establishment and Operation of a Zone;
   2. priorities to be given by ministries and other authorities with respect to Concessionaires and Users.
2. Regulations issued under this section will take effect notwithstanding the provisions of any law.

6. (Benefits)

When a Zone has been allocated, then, with respect to its Establishment and Operation, and with respect to any enterprise or service of a User, there shall apply exemptions from direct taxes and import and export licenses and free use of foreign exchange and, subject to necessary alterations, sections 18, 19, 20, and 22 of the Free Port Zones Law, 5729-1969 (1), in addition to any other benefit applicable under any law.

7. (Supervision)

Goods required for manufacturing or intended for export, their transportation, entry and exit of the zone, will be under the supervision of the Customs Authority and the Free Port Zones Regulations, 5731-1971 (2), shall apply subject to necessary alterations.

8.(Publication)

Every Concession and every approval granted Concessionaires and Users will be published as prescribed by Regulations.

9.(Goods for personal use)

The priorities and benefits under this Law shall not apply to personal use goods intended for or for retail sale in the Zone.

10.(Implementation of the Law)

1. The Ministers are empowered to implement this Law and they are authorized, with the approval of the Committee, to make regulations for its implementation.
2. Any changes in the Regulations which adversely affect any terms of a Concession or of a User's license, shall be subject to consent by the Council, and compensation to the affected person to the Council's satisfaction.

11.(Initial)

The Government shall appoint a Council within thirty days of the publication of this Law in Reshumot (Official Gazette).

NOTES

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