PART TWO

Zone Directorates and the Organization of the Zone

SECTION ONE

 

Zone Directorates, Boundaries of the Zone, Infrastructure and Superstructure and the Protection Thereof

Principles Concerning the Establishment, Functions, Powers and Operation of the Zone Directorate.

Article 5- The principles governing the establishment, functions, powers and operation of the Zone Directorate are as specified by the Council of Ministers Decree Number 85/9801 of August 16, 1985.

Boundaries of the Zone

Article 6- The boundaries of the Zone are those specified in the relevant Decree of the Council of Ministers issued for the establishment of the Zone.

The maritime areas in the wharves and other places allocated by the Port Authority and/or Port Management Directorate for ships and other marine vessels carrying goods into and out of the Zone using the docks or by way of lash and limbo by sea, as well as the route used for the transport of goods between such places and the zone in either direction, shall be regarded as part of the Free Zone in terms of customs procedures, provided that these areas are under the supervision of the Customs Authority.

Infrastructural Facilities

Article 7- The construction of infrastructure such as drainage, sewerage and treatment systems, roads and water, power and communication facilities of the zone boundaries, steel-yards, depots for smuggled goods, entrance and exit gates and other buildings and installations may be undertaken by the relevant Ministries or be contracted to the Operator or Z.F.O.

In cases when a free zone is established within the boundaries of a public port, airport or other facility, the processes and pocedures for the provisions of infrastructure shall be performed and the necessary structures and facilities made available by the General Directorate with due regard for the necessary coordination with and consent of the organizations and institutions concerned.

In cases when the Zone is established and operated by the Z.F.O., within the framework of an “Establishment and Operation Contract” concluded with the U.F.T, the Z.F.O shall be obliged to complete the construction work related to the working units and other covered workplaces required for the execution of activities in the area allocated to the Zone and for the provisions of infrastructure and constructions needed to link in-zone and off-zone infrastructure within the period specified in the Contract as of the date of issue of the Operating Licence. The Z.F.O. shall also be responsible for the promotion of the Zone within the country and abroad, for the leasing of the workplaces to entrepreneurs, for the sale of land on request provided that the Zone is established on private land and for equipping the open areas for sale with infrastructure until such time as the payment for the land is made, for supervising the construction of user buildings and for the carrying out other procedures related to the establishment and operation of the Zone.

Superstructural Facilities

Article 8- Treasury or public land allocated for the establishment of the Zone may be leased, in part or in whole, by the U.F.T. to the Operator or the Z.F.O., or to those users the activities of which are deemed appropriate, by means of a contract.

Users who obtain an Operating Licence from the General Directorate may launch their investments upon the approval by the Zone Directorate of the rent contracts they have made with the Operator or Z.F.O. Users with an Operating Licence which specifies that buildings and other facilities are to be constructed on the leased land and sets out periods for the preparation of the projects and the construction work shall fulfill their commitments concerning project design and construction of superstructure within the specified periods and then apply to the Zone Directorate for an "Occupation Permit".

All approvals and supervisory work during the construction phase shall be performed by the Zone Directorate. In zones with a Z.F.O., the Zone Directorate may delegate its responsibilities concerning approvals and supervisory work to the Z.F.O. The granting of an Occupation Permit shall mark the end of the investment phase and the beginning of the operation period.

The project preparation and construction work mentioned in the preceding paragraphs is to be accomplished within the period specified in the Operation Licence Application Form. This period may not be included in the operational phase specified in the “Operation Licence”.

The construction of buildings and other facilities in the Zone for rented or transfer to users may be done by the Operator or Z.F.O. or be contracted out. In cases when, following an investigation, it becomes clear to the Zone Directorate that the Z.F.O. or the Operator is not willing to undertake such work, these building and facilities may be constructed by other real and legal persons or be contracted out by them, provided that an Operation Licence is granted. If the buildings and facilities thus constructed are leased out by the Operator or Z.F.O., the claims of the Operator or Z.F.O in return for such services, shall be specified in the Contract drawn up. The tenant shall have to obtain an Operating Licence from the General Directorate prior to the renting of these buildings and facilities.

The minimum covered construction area of leased or tansferred buildings and facilities may not be less than 500 m2 unless this is separately specified for each Zone by the General Directorate.

The Z.F.O. and the users who own the land and superstructure may sell or transfer the land and superstructure to other users within the framework of the provisions of the Contract they have concluded with the U.F.T.

Protection of Buildings and Facilities

Article 9- The Zone Directorate is responsible for the protection of infrastructural and superstructural facilities and the boundaries of the Zone and for ensuring that any changes are carried out and taken delivery of under continuous observation and supervision.

The Operator or the Z.F.O. and the Zone Directorate shall jointly take the measures required to ensure that rented premises and facilities are handed back by the users in a usable condition and if necessary to secure the payment of an indemnity in an amount specified by the Zone Directorate to cover the restoration of such buildings and facilities to their former condition.