What is the difference between the FSA zone administration and an International Trade Zone? |15 April 2023
The Financial Services Authority (“FSA”) zone administration located at Bois De Rose Avenue consists of five warehouse blocks and one leased plot accommodating approximately thirty operators of which 98% are domestic companies.
These warehouses cater for both dry and cold storage activities, which include grocery retail and wholesale of different items such as hotel supplies and electronics warehousing for Shipping Agents, just to name a few. The FSA zone administration falls under the purview of the Facilities and Logistics section, which has the role to administer warehouse leases for zone operators, to maintain supervision of all zone projects and to ensure security of the entire zone through 24-hour security services.
The rates of these warehouses are calculated per meter square and are allocated to customers on a first come first served basis. There are no incentives associated with these warehouses located in the FSA zone administration.
However, in some instances warehouse space is rented out to companies holding an International Trade Zone (ITZ) license, which at present consists of only 2% of the total warehouse operators. It is important to note that ITZ companies receives certain incentives as opposed to domestic companies.
As per section 2 of the International Trade zone Act, 1995 an “international trade zone means an area declared as such under section 3 and such zone may be a single enterprise zone or a zone where more than one business is carried on.”
An ITZ can be located in any location around Seychelles subject to the plot, building or office space being demarcated as a trade zone as designated by the Minister of Finance, National Planning and Trade which is then Gazetted by the Attorney General’s Office as a declaration of International Trade Zone.
Contrary to the FSA zone administration, the International Trade Zone Section within the FSA is responsible for the licensing, regulation and supervision of all activities that is carried out inside an ITZ. As mentioned above, ITZ licensed companies benefit from certain incentives, which includes:
- 0% customs duty;
- 0% VAT for capital equipment, raw materials, office furniture and equipment;
- Ability to import foreign workers for skills absent in Seychelles;
- 100% foreign ownership permissible;
- Exemptions from the below clause and Acts – as listed in the non-applicability schedule of the ITZ Act.
- Section 4 and 13 of the Immovable Property (Transfer Restriction) Act these exemptions allows a non-Seychellois with an ITZ license to purchase or lease immovable property in Seychelles, and purchase or acquire shares in a company, which owns immovable or rights in Seychelles.
- Licenses Act - Whole Act
- Employment Act - Whole Act
- Stamp Duty Act - Whole Act
- Control of Rent and Tenancy Agreements Act - Whole Act
The above being said, all enquiries on licensing and zone administration related matters should be forwarded to the Authority:
By Post: Chief Executive Officer
Financial Services Authority
P.O. Box 991
Bois De Rose Avenue, Mahe
Seychelles
Fax: +248 4380888
By Email: enquiries@fsaseychelles.sc
Contributed