Service Activity
It is a service project that has a permit to practice activity from the Suez Canal Economic Zone Authority to carry out maintenance, contracting, and transportation activities, in addition to marine services, training, education and other services
Basic Frameworks for the Operational Model of Service Projects
Projects operating in the zone licensed to provide maintenance and repair services may execute maintenance contracts with stakeholders inside the country, and may import by themselves what is necessary to carry out those contracts in terms of spare parts, parts, components, supplies, or materials necessary for maintenance, repair and complementary works
Projects, which provide maintenance and repair services when contracting with government agencies and public bodies, may import, under the Final Import system, the spare parts used in maintenance and repair operations to execute the maintenance contract, provided that the contract shall be approved and stamped by the SCZone Authority to be submitted to the customs complex
Contracting companies established under the law, which own a manufacturing project site within the Zone, and carry out metal shaping and manufacturing works, and then store their products in their sites in preparation for supply and installation to execute their concluded contracts, may import by themselves. The “Handling” customs procedure shall be followed after that on establishing and expanding the required project in the zone
Projects established in the ports affiliated to the SCZone Authority and established under the umbrella of the law enjoy the tax and customs incentives stipulated in Article 42 of the Law, which practice the activity of establishing platforms (floating within the territorial waters / erected on the berths) to provide bunkering services for various types of fuels from petroleum/gas/ ammonia/green hydrogen and others, for global or local vessels, as well as marine services projects (such as marine bunkering activities, abrasion, deepening, purification, marine construction of docks, etc.) of all kinds that provide services for transit ships
- If the above-mentioned goods and items are re-exported when shipped to transit ships, they are exempted from customs tax. They are also subject to zero value-added tax rate as they are regarded as goods exported abroad, pursuant to Article 24 of the Executive Regulations of the Law and Article (6) of Value Added Tax Law No. 67 of 2016 as exporting services
Relevant Important References and Resources
- 1- Article 42 of Economic Zones of a Special Nature Law No. 83 of 2002
- 2- Article 24 of the Executive Regulations of Economic Zones of a Special Nature Law No. 83 of 2002
- 3- Article 6 of Value Added Tax Law No. 67 of 2016
