SCZone

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Industrial activity

Operating Framework > Business Models > Industrial Activity

A production or assembly project that has an operating license issued by SCZone Authority. The license indicates the nature of the products manufactured and the project carries out transformative or complementary operations.

Basic Frameworks of the Operational Model of Industrial Projects

When these projects produce national products in which the local manufacturing percentage is not less than 30%, the Head of the SCZone Authority issues a certificate of origin for these products after the project owner acknowledges this percentage

Goods imported by the SCZone projects from outside the country to carry out their production and industrial activities are not subject to the general rules for import and export. Rather, they follow the general rules issued by the Board of Directors of the SCZone Authority. Export from the Zone to the local market shall be only within limits, proportions, quantity, and the time period stipulated in the operating license

Industrial projects with high export rates to the local market may work under the Final Import system for raw materials and production supplies only (and shall not combine the Final Import system with the Special Systems)

On exporting the manufactured products by the SCZone industrial projects to the local market, for which a Certificate of Origin is issued by the SCZone Authority, the customs tax is calculated only on the foreign component including foreign parts, raw materials, supplies, etc., without calculating the operating costs in the Zone. The tax is calculated at the exchange rate at the time of the products exit from the Zone to the local market into on the registration date of the customs declaration

Goods produced in the SCZone, when exported abroad, are granted the advantages of the Export Support Program in accordance with the coordination between the SCZone Authority and the Ministry of Commerce

It is allowed to work under the system of consolidated bill of ladings for the exports of the SCZone industrial companies through a prior monthly export approval issued by the SCZone Authority to the Customs Authority with the quantity of goods allowed to be exported

Industrial projects work for others, as they repair the goods received from the local market or complete manufacturing them, and then return them thereto

Owners of industrial projects are able to withdraw wastes or products that are not fit for export (wastage) resulting from their activity and manufacturing operations into the country, except for items that are not imported or rejected by OGA, as they can only be exported or destroyed outside the country

Owners of industrial projects can complete the manufacture of a product in the local market (working at others), and then return it as a complete product to the project in the Zone

Production industrial projects may rent yards and a place outside the site of their production project that is limited to storage purposes only for their goods (private storage yards), without using the site as a sale or dispose outlet