The Complete 2004 Laws of Nigeria

---

ARRANGEMENT OF SECTIONS

Designation and establishment of the Oil and Gas Export Free Zone, etc.

SECTION

1.   Designation and establishment of the Oil and Gas Export Free Zone.

2. Establishment of the Oil and Gas Export Free Zone Authority.
3. Establishment and membership of the governing board, etc.
4. Removal from office.
5. Functions of the Authority.

Staff of the authority

6. Appointment of the Managing Director, secretary and other employees, etc.
7. Vesting of property in the Authority.
8. Exemption from taxes.
9. Approval of enterprise to undertake approved activity.
10. Power to grant licence.
11. Payments for goods and services.
12. Import of goods into the Export Free Zone.
13. Persons not to enter the Export Free Zone without permission.
14. Prohibition of retail trade.
15. Special provisions relating to articles imported with custom duty cessions.
16. Prohibition of storage of ammunition and dangerous explosives.
17. Export of goods from the Export Free Zone.
18. Incentives and related matters.
19. Enterprises to submit returns.
20. Work permit.
21. Fund of the Authority.
22. Annual estimates, accounts, etc.
23. Enactments applicable in customs territory to apply.
24. Omission and non compliance.
25. Regulations.
26. Interpretation.
27. Short title.

SCHEDULE

Supplementary provisions relating to the Authority

[1996 No. 8.)

[29th March, 1996]

[Commencernent.]

Designation and establishment of the Oil and Gas Export Free Zone, etc.

1. Designation and establishment of the Oil and Gas Export Free Zone

(1) The President hereby designates the Onne/lkpokiri area of Rivers State as an ex-
port free zone, (in this Act referred to as "the Export Free Zone").

(2) The Export Free Zone established pursuant to subsection (1) of this section, shall
be operated and managed by the Oil and Gas Export Free Zone Authority established by
section 2 of this Act.

2. Establishment of the Oil and Gas Export Free Zone Authority

(1) There is hereby established for the Oil and Gas Export Free Zone, an authority to
be known as the Oil and Gas Export Free Zone Authority (in this Act referred to as "the
Authority").

(2) The Authority shall be a body corporate, with perpetual succession and a common
seal and may sue and be sued in its corporate name and shall be capable of acquiring,
holding or disposing of any property movable or immovable for the purpose of carrying
out its functions.

3. Establishment and membership of the governing board, etc.

(1) There shall be for the Authority a governing board (in this Act referred to as "the
Board") which shall consist of the following members, that is-

              (a)       a chairman, who shall be appointed by the President, being a person who by
reason of his ability, experience or specialised knowledge of export and in-
vestment promotion, commercial or economic matters is capable of making
outstanding contributions to the functions of the Authority;

       (b)       one representative each of the following Ministries, that is-

(i) Finance;

(ii) Commerce;

(iii) Industry;

(iv) Petroleum Resources;
(v) Justice;

(c)         the Managing Director of the Nigerian Ports Authority or his representative not
below the rank of a Director in the civil service of the Federation;

 (i) the Nigerian Chamber of Commerce, Industries and Mine and Agri-

   culture;

(ii) the Corporate Affairs Commission;

 (iii) the Manufacturers Association of Nigeria;
 (iv) the Rivers State Government;

(f)         two eminent and knowledgeable Nigerians who shall not be employed in the
public service and shall be persons with vast practical experience in the field of
industry, commerce, finance, export promotion and such other related fields to
be appointed by the Minister; and

(g)        the Managing Director of the Authority.

(2) A member of the Board other than ex-officio member shall hold office for a per-
iod of three years from the date of his appointment as a member and shall be eligible for
re-appointment for one further period of two years and no more.

(3) Notwithstanding subsection (2) of this section, the President may, on the recom-
mendation of the Minister, require any member of the Board to vacate his office if he is
satisfied that it is not in the interest of the Authority or the interest of the public that the
member should continue in office.

(4) A member of the Board other than an ex-officio member may, by notice in writing
addressed to the Board, resign his appointment.

(5) The supplementary provisions contained in the Schedule to this Act shall have ef-
fect with respect to the proceedings of the Board and other matters relating to the Board.

4. Removal from office

(1) If it appears to the Board that a member of the Board should be removed from of-
fice on grounds of misconduct or inability to perform the functions of his office, the
Board shall, after consultation with the interests, if any, represented by that member,
make recommendations to that effect to the Minister and if the Minister approves the rec-
ommendations he may declare in writing, the office of that member vacant.

(2) Without prejudice to subsection (1) of this section any member who is absent
from two consecutive ordinary meetings of the Board shall file his explanation in writing
with the secretary for consideration by the Board and if the explanation is not accepted by
the Board, the Board shall recommend to the Minister that the member be removed from
office and the Minister may declare, in writing, the office of that member vacant.

5. Functions of the Authority

(1) In addition to any other functions conferred on the Authority by this Act, the
functions and responsibilities of the Authority shall include-

       (a)       the administration of the Authority and management of the Export Free Zone;

      (b)       the grant of all requisite permits and licences to conduct approved enterprises
within the Export Free Zone;

      (c)        the approval of development plans of the Authority and the Export Free Zone,
the annual budgets in respect of infrastructures, administrative buildings, pro-
motion of the Export Free Zone, the provision and maintenance of services and
facilities;

   (d)        the establishment of customs, police, immigration and similar posts in the Ex-
port Free Zone;

service of the employees of the Authority and without prejudice to the generality of the
foregoing such regulations may provide for-

       (a)       the appointment, promotion and disciplinary control of all employees of the
Authority; and

       (b)       appeal by such employees against dismissal or other disciplinary measures and
until such regulations are made, the regulations relating to the conditions of
service of the officers in the civil service of the Federation and the provisions
of the Pensions Act shall be applicable with such modifications as may be nec-
essary to the staff of the Authority.

[Cap. P4.]

(5) Approved enterprises operating within the Export Free Zone shall make provi-
sions for the pensions and gratuities for their employees.

7. Vesting of property in the Authority

The President or the Governor of a State respectively may, by Order, transfer to the
Authority, any property belonging to the Federal or State Government which appears to
be necessary or expedient to the Authority in carrying out its functions under this Act and
such property shall vest in the Authority by virtue of that Order and without further as-
surance.

8. Exemption from taxes

Approved enterprises operating within the Export Free Zone shall be exempt from all
Federal, State and local government taxes, levies and rates.

9. Approval of enterprise to undertake approved activity

(1) Any enterprise which proposes to undertake an approved activity within the Ex-
port Free Zone, shall apply to the Authority in writing for permission to do so and shall
submit such documents and information in support of the application, as the Authority
may require from time to time.

(2) Subject to the provisions of this Act, the Authority may grant, subject to such
terms and conditions as it thinks fit, approval for an enterprise to undertake the approved
activity specified in its application brought under subsection (1) of this section.

10. Power to grant licence

(1) The Authority may grant a licence for any approved activity in the Export Free
Zone to an indi vidual or business concern whether or not the business is incorporated in
the customs territory.

(2) The grant of a licence by the Authority shall constitute registration for the pur-
poses of company registration within the Export Free Zone.

(3) A body corporate licensed to operate within the Export Free Zone and undertak-
ing an approved activity shall notify the Authority of any purchase, assignment or trans-
fer of shares in the body corporate, except where its shares are quoted and are freely
transferable on any international stock exchange.

erning the Export Free Zone.

11. Payments for goods and services

(1) Where an approved enterprise operating in the Export Free Zone supplies goods
and services to customers within the customs territory, that enterprise shall be entitled to
receive payment for such goods and services in foreign currency and for the purposes of
such payment, the rules and regulations applicable to importation of goods and services
into Nigeria and repatriation of the proceeds of sales or services shall apply.

(2) Where a person within the customs territory supplies goods and services to an ap-
proved enterprise established within the Export Free Zone, that person shall be entitled to
receive payment for such goods or services in foreign currency and the rules and regula-
tions applicable to export from Nigeria and the repatriation of proceeds from sales or
services shall apply.

12. Import of goods into the Export Free Zone

(1) The Authority and any approved enterprise shall be entitled to import into the Ex-
port Free Zone, free of customs duty, any capital goods, consumer goods, raw materials,
components or articles intended to be used for the purposes of and in connection with an
approved activity, including any article for the construction, alteration, reconstruction,
extension or repair of premises in the Export Free Zone or for equipping such premises.

(2) For the purposes of this section, articles for equipping premises shall be deemed
to include equipment for offices and other ancillary facilities necessary for the proper
administration of the premises and for the health, safety, hygiene and welfare of the
premises and of persons employed therein.

(3) All goods brought into the Export Free Zone shall be consigned-

       (a)    to the Authority or to an approved enterprise and the goods may, with the ap-
proval of the Authority, be transferred from one approved enterprise to another
or from the Authority to an approved enterprise or from an approved enterprise
to the Authority; and

      (b)    without prejudice to the provisions of subsection (2) of this section, to a bank
acting on behalf of any party to a transaction involving the Authority or an ap-
proved enterprise.

(4) The Authority may take such steps as it deems necessary to preserve goods within
the Export Free Zone, whether by moving the goods from one place to another or by
storing the goods and where any expenses are incurred by the Authority in so doing, the
owner or consignee of the goods shall reimburse the Authority for the expenses.

(5) Subject to the provisions of this Act and any regulations made thereunder, goods
brought into the Export Free Zone pursuant to this section may-

        (a)    unless otherwise directed by the Authority, be stored, sold, exhibited, broken
up, packed, graded, cleaned, marked, re-marked, loaded, unloaded, re-loaded,
divided, mixed, separated or otherwise manipulated; or

       (b)    be worked, processed or re-processed or otherwise manipulated or manufac-
tured; or

unless otherwise directed by the Authority; or

    (d)        subject to subsection (6) of this section, be removed from the Export Free
Zone or sent into the customs territory, whether as originally packed or other-
wise; or

                       (e)        subject to any enactment pertaining thereto, be destroyed.

(6) Where any goods which are dutiable on entry into the customs territory are sent
from the Export Free Zone into the customs territory, the goods shall be subject to the
provisions of the Customs, Excise Tariff, etc. (Consolidation) Act and any regulations
made thereunder, and if the goods are intended to be disposed of in the customs territory,
shall not be removed from the Export Free Zone unless-

[Cap. C49.]

       (a)       the consent of the Authority has been obtained; and 

       (b)       the relevant customs authorities are satisfied that all import restrictions rele-
vant thereto have been complied with and all duties payable in connection with
the importation thereof into the customs territory have been paid.

(7) Samples of goods being taken into the customs territory shall be subject to the
provisions of subsection (5) of this section, except in cases where the relevant customs
authority is satisfied that such goods are of no commercial value.

(8) Where goods are brought from the customs territory into the Export Free Zone for
the purposes of an approved activity, the goods shall be deemed to be exported.

(9) The President shall appoint for the Export Free Zone, an inspecting agent who
shall be charged with responsibility of inspecting goods imported from the Export Free
Zone into Nigeria for use by an approved enterprise within the Export Free Zone.

13. Persons not to enter the Export Free Zone without permission

(1) No person shall, without the prior permission of the Authority, enter, remain in or
reside in the Export Free Zone.

(2) Any person who contravenes the provisions of subsection (1) of this section shall
have his permit revoked by the Authority.

14. Prohibition of retail trade

(l) No retail trade shall be conducted within the Export Free Zone without the prior
approval of the Authority and which may be subject to such terms and conditions as may
be imposed, from time to time, by the Authority.

(2) Any person who contravenes the provisions of subsection (1) of this section or of
a term or condition imposed pursuant to that subsection shall have his licence revoked by
the Authority.

15. Special provisions relating to articles imported with custom duty cessions

(1) An approved enterprise which imports into the Export Free Zone an article with a
benefit in respect of customs duty under the provisions of this Act shall-

        (a)       keep such records or the articles so imported in such forms and containing
such particulars as may be required by the Authority;

       (b)       cause the articles to be marked with such mark and in such manner as may be
required by the Authority;

      (c)        permit the Authority or a person authorised by the Authority at all reasonable
times-

(i) to inspect the records relating to those articles; and
(ii) to have access to any factory, warehouse, assembly plant or other
premises under the control of the approved enterprise for the purpose
of examining the article which the Authority believes to be therein and
of satisfying itself of the accuracy of the particulars in relation to the
article contained in such records.

(2) Any person who contravenes the provisions of subsection (1) of this section is
guilty of an offence.

16. Prohibition of storage of ammunition and dangerous explosives

(1) Notwithstanding any other provision of this Act, the following goods shall not be
imported, taken into or stored in the Export Free Zone-

              (a)       firearms and ammunition, other than by members of the Nigeria Police Force,
the Armed Forces of the Federation or any of the Security Agencies employed
to work in the Export Free Zone in the course of their duties or by such other
persons as may be authorised by the Authority;

                               (b)       dangerous explosives, without prior approval of the Authority;

             (c)        petrol, inflammable materials, hazardous cargoes or oil fuels, other than in
such quantities and on such terms and conditions as may be prescribed by the
Authority;

             (d)        goods which the Authority by Order has imposed specific or absolute prohibi-
tion on their importation into the Export Free Zone.

(2) Any person who contravenes the provisions of subsection (1) of this section is
guilty of an offence.

17. Export of goods from the Export Free Zone

Export of goods from the Export Free Zone to the customs territory shall, except as
otherwise prescribed by or pursuant to this Act, be subject to the same customs and li-
censing requirements as apply to goods imported from other countries.

18. Incentives and related matters

(1) Approved enterprises within the Export Free Zone shall be entitled to the follow-
ing incentives-

      (a)        legislative provisions pertaining to taxes, levies, duties and foreign exchange
regulations shall not apply within the Export Free Zone;

                        (b)       repatriation of foreign capital investment in the Export Free Zone at any time
   with capital appreciation of the investment;                                                                           

    (c)        remittance of profits and dividends earned by foreign investors in the Export
Free Zone;

                      (d)       no import or export licences shall be required;

   (e)        up to a minimum of 25 per cent of production may be sold in the customs terri-
tory against a valid permit, and on payment of appropriate duties;

   (f)         rent free land at construction stage, thereafter rent shall be as determined by
the Authority;

  (g)       up to 100 per cent foreign ownership of business in the Export Free Zone
allowable;

                   (h)        foreign managers and qualified personnel may be employed by companies

operating in the Export Free Zone.

(2) The Authority shall be the only agency qualified to-

       (a)       give all approvals; and

       (b)       cancel all licenses.

(3) The Authority shall simplify all procedure necessary for authorization of invest-
ments in the Export Free Zone and state by order from time to time its requirements for
the grant of authorisations for investments in the Export Free Zone.

(4) Operations within the Export Free Zone shall commence on the date when the
construction of the perimeter fence and gate of the Export Free Zone have been com-
pleted and the Authority has assumed duties.

(5) There shall be no strikes or lockouts for a period of 10 years following the com-
mencement of operations within the Export Free Zone and any trade dispute arising
within the Export Free Zone shall be resolved by the Authority.

19. Enterprises to submit returns

An approved enterprise shall submit to the Authority at such intervals as may be pre-
scribed, such statistical data, and such information and returns as regards the sales and
purchases and other operations of the enterprise as the Authority may require or as may
be prescribed, from time to time.

20. Work permit

Where a person who is a non-Nigerian citizen is employed by the Authority or by an
approved enterprise established in the Export Free Zone, upon application by the enter-
prise for a licence to establish itself within the Export Free Zone or at any time thereafter,
the enterprise shall apply on behal f of the non-Nigerian citizen, direct to the Authority for
the purpose of immigration and employment permits, in such manner as may be pre-
scribed by the Authority.

21. Fund of the Authority

(1) The Authority shall establish and maintain a fund which shall consist 0[-

       (a)       all moneys received from the Federal Government;

       (b)       proceeds from all activities, services and operations of the Authority;

as the body corporate, is guilty of that offence and liable to be proceeded against and
punished accordingly.

25. Regulations

The Authority may, with the approval of the Minister make regulations for the proper
implementation of this Act.

26. Interpretation

In this Act, unless the context otherwise requires-

"approved activities" means activities specified and approved by the Authority;

"approved enterprise" means any enterprise established within the Export Free
Zone approved by the Authority;

"Authority" means the Oil and Gas Export Free Zone Authority established by sec-
tion 2 of this Act;

"member" means a member of the Board and includes the chairman;

"Minister" means the Minister charged with responsibility for matters relating to
trade.

27. Short title

This Act may be cited as the Oil and Gas Export Free Zone Act.

SCHEDULE
[Section 3 (5).]

Supplementary provisions relating to the Authority

Proceedings of the Board

1.    (1) Subject to this Act and to section 26 of the Interpretation Act, the Board may make
standing orders regulating the proceedings of the Authority or of any committee thereof.

[Cap. 123.]

(2) The quorum of the Board shall be eight and the quorum of any committee of the
Board shall be as may be determined by the Board, from time to time.

2.    (1) The Board shall meet not less than four times in each year and, subject thereto, the
Board shall meet whenever it is summoned by the chairman, and if the chairman is required to
do so by notice given to him by not less than three other members, he shall summon a meeting
of the Board to be held within fourteen days from the date on which the notice is given.

(2) At any meeting of the Board the chairman shall preside, but if he is absent, the
members present at the meeting shall appoint one of their number to preside at that meeting.

the Board may eo-opt him as a member for such period as it thinks fit:

Provided that a person who is a member by virtue of this sub-paragraph shall not be en-
titled to vote at any meeting of the Board and shall not count towards the quorum.

Committees

3.     (1) The Board may appoint one or more committees to carry out on behalf of the Board
such of its functions as the Authority may determine.

(2) A committee appointed under this paragraph shall consist of such number of persons
(not necessarily members of the Board) as may be determined by the Board; and a person
other than a member of the Board shall hold office on the committee in accordance with the
terms of his appointment.

Miscellaneous

4.     (1) The fixing of the seal of the Authority shall be authenticated by the signature of the
chairman and of any other member authorised generally or specially by the Board to act for
that purpose.

(2) Any contract or instrument which, if made or executed by a person not being a body
corporate, would not be required to be under seal may be made or executed on behalf of the
Board by the chairman and the Managing Director or any person authorised generally or spe-
cially by the Authority to act for that purpose.

5. Members of the Board shall be paid out of moneys at the disposal of the Board such re-
numeration, fee or allowances in accordance with such scales as may be approved, from time
to time, by the Minister.

6. The validity of any proceedings of the Board or of a committee thereof shall not be ad-
versely affected by any vacancy in the membership of the Board or of a committee or by the
defect in the appointment of any member of the Board or committee or by reason that a person
not entitled to do so took part in the proceedings.

7.   (1) A member of the Board who is-

 (a)    directly or indirectly interested in any company or enterprise the affairs of
which are being deliberated upon by the Authority; or

                        (b) is interested in any contract made or proposed to be made by the Authority,
                        shall as soon as possible after the relevant facts have come to his knowledge disclose the na-
                        ture of his interest at a meeting of the Board.

(2) A disclosure under subparagraph (1) of this paragraph, shall be recorded in the min-
utes of the meeting of the Board and the member shall-

                                 (a)    not take part after such disclosure in any deliberation or decision of the Board
with regard to the subject matter in respect of which his interest is thus dis-
closed;

                                 (b)    be excluded for the purposes of constituting a quorum of the Board for any
such deliberation or decision.

List of Subsidiary Legislation

1. Oil and Gas Export Free Zone (Special Import Provisions) Order.
2. Oil and Gas Export Free Zone Regulations, 2003.

OIL AND GAS EXPORT FREE ZONE (SPECIAL IMPORT
                               PROVISIONS) ORDER 2003

[S.l. 20f2003.]

under section 23 (2)

[3rd April, 2003]

[Commencement.]

1. Import duty tariff rebate for special products imported into the free zone

As from the commencement of this Order, any special product imported into the free
zone under the Act-

(a)        on which value has been added without changing the essential character of the
product after processing in the free zone; and

                    (b)        intended for the customs territory,

shall be granted an import duty tariff rebate of 75 percent.

2. Interpretation

In this Order, unless the context otherwise requires-

"Act" means the Oil and Gas Export Free Zones Act, 1996;

"customs territory" means the territory within the Federal Republic of Nigeria other
than the area designated as the oil and gas free zone under the Act;

"free zone" means the oil and gas free zone designated under the Oil and Gas Export
Free Zone Act;

[1996 No. 8.]

"special product" means any article or item imported into the free zone on
which value has been added without changing the essential character of the product after
processing;

3. Citation

This Order may be cited as the Oil and Gas Export Free Zone (Special Import Provi-
sions) Order 2003.

OIL AND GAS EXPORT FREE ZONE REGULATIONS, 2003

ARRANGEMENT OF REGULATIONS

PART I

Administration and Powers of the Free Zone

REGULATION

1.   Functions of the Free Zone Authority.

2. Exemption from taxes, rates, etc.
3. Incentives to Free Zone investors.
4. Movement of goods in and out of the Free Zone.
5. Processing of goods in the Free Zone.
6. Registration of vehicles.
7. Possession of driver's licence.
8. Customs, Police and Immigration.
9. Customs procedures.
10. Security in the Free Zone.
    11. Free Zone tariffs.

12.   Applicable laws.

13.   Arbitration and settlement of disputes.

14.   Legal proceedings.

15. Restriction on non-Nigerian employee.
16. Health, safety and environmental control.

PART II

Procedures for Importing, Exporting and Movement of Goods

17. General procedures for importing goods into the Free Zone.
18. Procedures for importing goods into the Free Zone by sea.
19. Procedures for importing goods into the Free Zone by air.
20. Procedures for importing goods into the Free Zone by road.
21. Cargo track inventory system.
22. Exporting goods from the Free Zone into the Customs Territory.
23. Customs Scheduling System.
24. Exporting goods overseas by sea.                                                                     

REGULATION

25. Export of goods overseas by air.
26. Goods from the Customs Territory for repairs or maintenance in the Free Zone.
27. Repairs and maintenance of goods in the Free Zone from the Customs Territory for export.
28. Goods for repairs or maintenance in the Customs Territory from the Free Zone.
29. Procedures for transferring goods between licensees.
30. Procedures for transferring goods from a Free Zone to another.

PART III

Licensing of Business Entities within the Free Zone

31. Form of application for licence.
32. Types of licences.
33. Free Zone enterprise licence.
34. Continuing obligations of a licensee.
35. Renewal of licence.
36. Premises.
37. Amendment, withdrawal, revocation and surrender.
38. Annulment of an operational licence.
39. Licence fees.

PART IV

Free Zone Enterprises Procedures

40. Formation of Free Zone enterprises.
41. Issuance of certificate.
42. Share Capital.
43. Name of a Free Zone enterprise.
44. Registered address of a Free Zone enterprise.
45. Sign-name plate.
46. Correspondence, etc.

PART V

Banking Procedures 
47. Banking activities in the Free Zone.

PART VI

Health, Safety and Environment

48. Management of health, safety and environmental matters within the Free Zone.

PART VII

Planning and Construction Procedures 
49. Acquisition of land.

Miscellaneous

REGULATION

50. Immigration procedures.
51. Guidelines.
52. Interpretation.
53. Citation.

OIL AND GAS EXPORT FREE ZONE REGULATIONS, 2003
  [S.1. 12 of2003.]

[5th December, 2003]

[ Commencement.]

PART I

Administration and Powers of the Free Zone

• Functions of the Free Zone Authority

The Administration of the Free Zone is vested in the Authority, which in exercise of
its functions shall have power to delegate some of its functions as it may, from time to
time, determine.

2. Exemption from taxes, rates, etc.

(1) A  licensee shall, in connection with its operations in the Free Zone, be exempted
from payment of all Federal, State or Local Government taxes and rates, including stamp
duties.

(2) A licensee or any other entity entitled to an exemption from payment of taxes un-
der these Regulations shall, be exempted from providing, filing or submitting any docu-
ments or information which but for these Regulations would be required by any Ministry
or any other Government agency, excluding the Authority for the purpose of assessing or
charging such taxes or duties.

(3) The Authority shall, on request from any Ministry or Government agency, ex-
cluding the Authority, provide a copy of the current licence of a licensee or entity entitled
to an exemption under these Regulations.

3. Incentives to Free Zone investors

(1) A licensee shall not be subject to foreign exchange regulations in connection with
its operations in the Free Zone.

(2) A licensee may repatriate any foreign capital invested in the Free Zone at any
time together with capital appreciation thereon.

may be remitted overseas at any time.

(4) A licensee operating in the Free Zone shall be entitled to---

(a) up to 100 percent foreign ownership of any business in the Free Zone;
(b) up to 100 percent foreign management of any business in the Free Zone.

port or export from the Free Zone.

(6) Any products manufactured, assembled or pre-packaged and sold in the Free
Zone shall be-

(a) registered in accordance with the provisions of these Regulations; and

(b)        sold in the Customs Territory subject to the tariffs and other charges prescribed
by the appropriate authorities.

(7) Notwithstanding the provisions of regulation 3, subregulation (6) of this regula-
tion, the percentage of any products or goods manufactured, assembled, pre-packaged in
the Free Zone and sold in the Customs Territory shall be unlimited.

(8) Foreign personnel employed by a licensee in the Free Zone shall not be subject to
the immigration quota system.

(9) Goods brought into the Free Zone by a licensee, for consumption by the licensee
in the normal course of its business within the Free Zone shall not attract any taxes or
duties whatsoever.

4. Movement of goods in and out of the Free Zone

(1) The Authority shall have the power to take over Free Zone goods abandoned in
the Free Zone and dispose of them in any manner it may deem fit.

(2) Where any goods or properties have been declared abandoned and the owner or
person who ought to be in possession of them discarded them and is indifferent as to what
becomes of them, any costs incurred by the Authority in removing the abandoned goods
shall, be refunded on demand by the licensee or owner of the abandoned goods, as the
case may be.

5. Processing of goods in the Free Zone

Goods brought into the Free Zone by a licensee or transferred to the licensee by an-
other licensee in the Free Zone may, subject to the licensee holding an appropriate li-
cence, be broken up, sorted, graded, packed, cleaned, marked, remarked, loaded, un-
loaded, divided, mixed, separated or otherwise worked or reworked by the licensee.

6. Registration of vehicles

Registration of vehicles in the Free Zone shall be in accordance with the rules and
regulations set out by the Authority, the Federal Road Safety Corps and the Free Zone
Customs Command.

7. Possession of driver's licence

A driver of a vehicle in the Free Zone shall possess-

       (a)              a valid driver's licence issued by the Federal Road Safety Corps and the
driver's licence shall be appropriate for the required class of vehicle; or

       (b)              an international driver's licence issued by an appropriate authority and duly
verified by the Authority and the Federal Road Safety Corps.

8. Customs, Police and Immigration

Dedicated Free Zone Customs, Police and Immigration Commands shall be estab-
lished to deal with all aspects of the movement of goods and personnel in and out of the
Free Zone.

9. Customs procedures

Without prejudice to the provisions of the Act and these Regulations, the following
Customs procedures shall apply in the Free Zone-

       (a)              goods released into the Customs Territory shall be classified as imports and be
subject to all applicable taxes, duties and levies;

       (b)              goods released from the Customs Territory into the Free Zone shall be classi-
fied as exports into the Free Zone;

       (c)               equipment and consumables to be used in the construction of facilities in the
Free Zone, may be imported into the Free Zone by a licensee free of any taxes,
duties or levies.

10. Security in the Free Zone

The Authority shall provide security for the properties, premises and facilities of the
Authority, while the Nigeria Ports Authority shall provide security for its own properties,
premises and facilities in the Free Zone.

11. Free Zone tariffs

The Authority shall issue a schedule of tariffs which shall apply in the Free Zone and
which shall be reviewed, from time to time and copies made available to the licensees or
operators.

12. Applicable laws

In addition to the provisions of the Act or these Regulations or circulars or any Order
applicable in the Free Zone, all other relevant laws applicable in the Customs Territory
shall apply in the Free Zone.

13. Arbitration and settlement of disputes

(1) Any dispute arising between licensees in the Free Zone which cannot be settled
amicably shall, be referred by either of the parties to the Authority for settlement and the
decision of the Authority on the matter shall be communicated to the parties accordingly.

(2) Any dispute arising between a licensee and any Government agency in the Free
Zone shall, be referred to the Authority by, either of the parties concerned and the Au-
thority shall represent the licensee in all negotiations, arbitration, settlement and recon-
ciliation of the dispute.

regulation (2) of this regulation.

[L.F.N. 2004 Cap. A 18.]

(4) Any dispute arising between any licensee and the employees which cannot be set-
tled amicably between the parties shall, be referred to the Authority, which shall take all
necessary steps to reach a settlement between the parties.

(5) In all the cases in sub regulations (1) to (4) of regulation 13 of this regulation, the
Authority reserves the right to intervene at any stage in the dispute without prior notice to
the parties involved, in order to settle the dispute and maintain industrial peace in the
Free Zone.

14. Legal proceedings

A licensee shall take out litigation or defend any suit through the Authority and the
Authority shall take appropriate measures to protect the rights of the licensee in the suit.

15. Restriction on non-Nigerian employee

A non-Nigerian employee of any licensee shall not accept employment outside the
Free Zone or offer the same services outside the Free Zone without the prior consent and
approval of the Authority in accordance with applicable laws.

16. Health, safety and environmental control

A licensee shall, observe the relevant measures necessary for the protection and pres-
ervation of the Free Zone environment and the immediate host community, in accordance
with the relevant Federal Laws on health, safety and environmental control.

PART II

Procedure for Importing, Exporting and Movement of Goods

17. General procedures for importing goods into the Free Zone

(1) Goods shall be imported into the Free Zone in accordance with the following
procedures-

       (a)              the supplier of the goods shall, ensure that the Bill of Lading or airwaybill,
invoices and packing list are itemised with their prices;

       (b)              the manifest of the vessel or the aircraft relating to the goods shall be clearly
marked with the words "Free Zone Status" for goods to be discharged at the
Free Zone;

      (c)               the licensee shall observe the following procedures in relation to the Bill of
Lading or airwaybill, (in this regulation referred to as the "Bill")-

                    (i)    the Bill shall indicate that the consignee of the goods is the licensee
and specify the licensee's address as Oil and Gas Free Zone, Onne,
On ne Port Complex, Rivers State, Nigeria;

                    (ii)     where a bank has a lien on the goods shipped into the Free Zone, the
Bill shall be consigned to the bank but shall bear the marks and num-
bers of the Free Zone;

                    (iii)     in sea shipments, the port of discharge shall be specified on the Bill as
Onne Port Complex and where the goods are to be discharged at a port
other than Onne Port Complex, it shall be specified on the Bill and the
final port of discharge shall be specified as "Oil and Gas Free Zone,
Onne, Rivers State; and

                                             (iv)    in air shipments, the airport of final destination shall be specified on
the Bill as "Port Harcourt International Airport;

       (d)              the licensee shall complete Form M prior to or on entering the Customs Terri-
tory and to be entitled to a waiver of pre-shipment inspection, when complet-
ing the Form M, the country of supply shall be specified as "Oil and Gas Free
Zone, Onne, Port-Harcourt, Rivers State;

       (e)              the identification and address of the consignee contained in the manifest, Bill,
invoice and packing list shall be specified as "Oil and Gas Free Zone, Onne,
Port-Harcourt, Rivers State;

      (f)               the Authority shall require the shipping line or airline to provide separate
manifest of goods to be discharged in the Free Zone;

       (g)              the shipping line shall provide a manifest for the Authority seven days before
the arrival of a vessel and in the case of an aircraft, the manifest shall be pro-
vided, prior to or upon arrival of the aircraft and the manifest shall be delivered
to the Authority in an envelope duly sealed with wax;

       (h)             a licensee shall provide to the Authority, prior to the arrival of goods or upon
shipment either by electronic means or otherwise, certified true copies of in-
voices, packing list and the Bill;

       (i)               the licensee shall comply with the specific procedures for importing goods into
the Free Zone by air, sea or road freight, as the case may be;

       (j)               the Transfer Request or Request to Transfer under Customs Escort shall, be
delivered to the Terminal Operator who shall transfer the goods from the quay-
side to the dedicated Free Zone stacking area or a common stacking area and
thereafter, the Transfer Request or Request to Transfer under Customs Escort
shall be signed by the Terminal Operator and returned to the Authority; and

       (k)               where the goods are delivered by the Terminal Operator to a dedicated Free
Zone stacking area, he shall be rei ieved of any shipping line liability on behalf
of the owner of the goods and the liability shall pass on to the Authority.

18. Procedures for importing goods into the Free Zone by sea

Goods shall be imported into the Free Zone by sea in accordance with the following
procedures-

  (a)       the commercial invoice relating to the goods shall specify the value of the in-
surance, cost of the goods and freight;

                     (b)       a licensee shall complete a Transaction Request Order Form and deliver it to

the Authority together with a copy of each of the following documents-

(i) Commercial Invoice;

(ii) Bill of Lading;

 (iii) Packing List; and

 (iv) Attested invoice (Form C 16);

      (c)        the Authority may after the verification of the licensee's documents referred to
in paragraph (b) of this regulation, forward a transfer request to the Free Zone
Customs Command and the Nigerian Ports Authority office in the Free Zone;

      (d)        the Free Zone Customs Command and Nigerian Ports Authority office in the
Free Zone may each issue a transfer request order to the Shipping Agent and
Terminal Operator to release the goods;

      (e)        the Transfer Request Order issued under paragraph (d) of this regulation shall
be marked with the stacking address of the cargo and a stock reference
number;

       (f)         the licensee shall apply in writing to the Authority, to transfer any of its Free
Zone goods upon discharge from the vessel or aircraft to the Free Zone;

      (g)        the licensee shall be liable to pay all Nigerian Ports Authority fees and
charges;

      (h)        the licensee shall be entitled to the ship agent's Delivery Order, on the presen-
tation of a Transfer Request Order and the payment of ship agent's charges;

     (i)         the licensee shall present the ship agent's Delivery Order to the Terminal Op-
erator and Nigerian Ports Authority office in the Free Zone for, the purposes of
transferring the goods from the quayside to the Free Zone.

19. Procedures for importing goods into the Free Zone by air

(1) Goods shall be imported into the Free Zone by air, in accordance with the follow-
ing procedures-

      (a)        the commercial invoice relating to the goods shall specify the value of the in-
surance, cost of the goods and freight;

      (b)        the licensee shall apply in writing to the Authority to, transfer under Customs
Escort any of its goods to the Free Zone at the expense of the licensee;

                         (c)        upon the receipt of a cargo advice from the airline, the licensee shall collect all

the documents relating to the goods as follows-

       (i) Commercial invoice;

       (ii) Airway bill; and

         (iii) Packing list;

       (d)        the Authority may, after the verification of the licensee's documents referred
to in paragraph (c) of this subregulation, forward a transfer request to Nigeria
Customs Service, Airport Command and Nigerian Aviation Handling Company;

          (e)     the Authority shall, subject to the payment of the airline charges and the pres-
entation of Customs Transfer Request Order, obtain a Delivery Order which
shall be presented to the Nigerian Aviation Handling Company for the release
of the goods;

          (f)      the goods released by the Nigerian Aviation Handling Company shall, be tal-
lied and reconciled with the manifest by the Nigeria Customs Service and the
Airport Command, which shall issue a landing certificate to the Customs Es-
cort for verification by the Free Zone Customs Command;

shall, bear a label of the stacking address of the cargo and a stock reference
number issued by the Authority and a copy of the landing certificate shall be
issued to the Nigerian Ports Authority.

(2) The airline shall, provide a separate manifest of all Free Zone cargo, and such a
manifest shall be made available by print or electronic transmission to the Authority,
prior to or upon arrival of the aircraft.

20. Procedures for importing goods into the Free Zone by road

Goods shall be imported into the Free Zone by road in accordance with the following
procedures-

       (a)              the commercial invoice relating to the goods shall, specify the value of the
insurance, cost of the goods and freight;

       (b)              the licensee shall, apply in writing to the Authority to transfer under Customs
Escort, any of its goods to the Free Zone at the expense of the licensee;

                                  (c)              the application referred to in paragraph (b) of this regulation shall be delivered

 to the Authority together with a copy of each of the following-

                 (i) Commercial Invoice;

                 (ii) Waybill; and

                   (iii) Packing List;

      (d)              the Authority may, after verification of the licensee's documents referred to in
paragraph (c) of this regulation, forward a Transfer Request to the Nigeria
Customs Service and the Free Zone Customs Command, which shall issue a
Transfer Request Order to the Nigeria Customs Service at the point of entry;

       (e)               the Nigeria Customs Service at the point of entry shall tally and reconcile the
waybill with the packing list and issue a landing certificate to the Custom
Escort;

      (f)              upon arrival of the goods in the Free Zone, the Free Zone Customs Command
shall verify, tally and reconcile the goods with the landing certificate.

21. Cargo track inventory system

(1) All deliveries of goods in the Free Zone shall be entered into the Authority's
"cargotrack" inventory system.

(2) The Authority shall issue stock reports, from time to time, showing the movement
of goods in the Free Zone.

(3) The licensee shall, on demand by the Authority or the Free Zone Customs Com-
mand, provide statistical data, delivery and receipt returns and any other information that
may be required by the Authority.

(4) The Authority and the Free Zone Customs Command shall, at reasonable times
have access to the factory, warehouse, assembly plant or any other premises of the licen-
see, for the purposes of examining any goods or records of the licensee.

Goods shall be exported into the Customs Territory from the Free Zone in accordance
with the following procedures-

             (a)       the licensee shall, submit a completed Form M to the bank with the original
shipping documents relating to the transfer of the goods into the Free Zone and
the country of origin of the goods on the Form M shall be the country where
the goods were originally manufactured or produced, while the country of sup-
ply shall be Oil and Gas Free Zone, Onne, Port-Harcourt, Rivers State;

            (b)        the licensee shall complete a Transaction Request Order and forward it to the
Authority together with copies of the following documents, attested to by the
bank-

             (i) Commercial Invoice;
             (ii) Form M;
            (iii) Bill of Lading;
            (iv) Packing List; and
            (v) Form C16;

     (c)              the Authority shall request the Free Zone Customs Command and Pre-
shipment Inspection Agent to examine, assess, value and classify the goods for
importation into the Customs Territory;

      (d)              a joint examination of the goods by the Free Zone Customs Command and the
Pre-shipment Inspection Agent shall be carried out and a Clean Report of In-
spection issued by the Pre-shipment Inspection Agent;

      (e)              the licensee shall produce a duly executed bank guarantee or bond to the Au-
thority and the Free Zone Customs Command, an inspection report duly signed
by the Free Zone Customs Command and the Pre-shipment Inspection Agent
specifying the duty payable on the goods shall be used for the release of the
goods;

      (f)               the licensee or its agent shall present a Clean Report of Inspection together
with other relevant documents to the bank for the purposes of payment of duty;

      (g)              the licensee or its agent shall complete the Single Goods Declaration Form
attaching the Clean Report of Inspection, invoice, Bill of Lading, Packing List,
Form C 16 and the bank pay-in-slip for endorsement and processing and release
to the licensee or its agent.

23. Customs Scheduling System

(1) The release of goods into the Customs Territory through the Customs Scheduling
System shall be in accordance with the following procedures-

         (a)        the licensee shall apply to the Authority for registration under the Customs
Scheduling System and the Authority shall endorse and forward it to the Free
Zone Customs Command for approval;

         (b)        where approval is granted by the Free Zone Customs Command, the release of
the goods shall be entered into a separate cargo tracking system opened by the
Authority;

         (c)        the licensee shall provide a bank guarantee or bond to the Free Zone Customs
Command for an amount sufficient to cover the duties;

         (d)        the licensee shall submit a Transfer Request Order, a copy of the bank guaran-
tee or bond and the Report of Inspection to the Authority, for the release of the
goods by the Free Zone Customs Command through the Customs Scheduling
System;

         (e)        the Free Zone Customs Command shall issue a Duty Scheduling Release Re-
quest Form to the licensee, who shall perfect the Free Zone Customs entry
within 14 days of the release of the goods.

24. Exporting goods overseas by sea

The licensee shall export goods overseas from the Free Zone by sea in accordance
with the following procedures-

                            (a)        a licensee shall complete a Transaction Request Order and forward it to the

                     Authority together with copies of the following documents-

                      (i) Commercial Invoice;

                      (ii) Bill of Lading;

                       (iii) Packing List; and

                       (iv) Export Declaration Form;

       (b)              the Authority shall request the Free Zone Customs Command to examine the
goods, as well as require the Nigerian Ports Authority to endorse the Export
Declaration Form, before the goods are released by the Free Zone Customs
Command;

       (c)              the licensee or its agent shall submit the release documents to the shipping line
for cargo booking;

      (d)              the Authority shall request the Terminal Operator to deliver the goods to the
vessel under the Free Zone Customs Escort;

       (e)              the Free Zone Customs Escort shall present the release documents to the cap-
tain of the vessel for endorsement as evidence of shipment of the goods;

       (f)               the Free Zone Customs Escort shall deliver the endorsed release documents to
the Authority, Free Zone Customs and Nigerian Ports Authority, for purposes
of deleting the goods from the cargo inventory;

       (g)              the licensee shall perfect an Export Bill of Entry for the purposes of effecting
final release by the Free Zone Customs Command.

25. Export of goods overseas by air

A licensee shall export goods overseas by air, in accordance with the following
procedures-

       (a)       by completing a Transaction Request Order and forwarding it to the Authority,
                   together with copies of each of the following documents-

        (i) Commercial Invoice;

        (ii) Air Waybill;

           (iii) Packing List; and

(iv) Export Declaration Form;

(b)              the Authority shall request the Free Zone Customs Commands to examine the
goods, as well as require the Nigerian Ports Authority to endorse the removal
Order for the release of the goods;

 (c)              the Authority shall request the Airport Customs Command to approve the re-
lease documents for the purposes of the export of the goods;

  (d)              the licensee or its agent shall submit the release documents to the Nigerian
Aviation Handling Company which shall endorse the Export Declaration
Form;

  (e)                the Authority shall transfer the goods under the Free Zone Customs Escort to
the Airport Customs Command and the Nigerian Aviation Handling Company
for tallying, reconciliation, verification and delivery on-board the aircraft;

   (f)               the Free Zone Customs Escort shall present the release documents to the cap-
tain of the aircraft for endorsement as evidence of air freight of the goods;

  (g)              the Free Zone Customs Escort shall deliver the endorsed release documents to
the Authority, Free Zone Customs Command and the Nigerian Ports Authority
for the purposes of deleting the goods from the cargo inventory;

  (h)              the licensee or the beneficiary of the services shall perfect an Export Bill of
Entry for final release by the Free Zone Customs Command.

26. Goods from the Customs Territory for repairs or maintenance in the Free Zone
      (1) A licensee or any other person may apply to the Authority for the repairs or main-
tenance in the Free Zone of goods situate at or from the Customs Territory.

(2) The application for repairs or maintenance of the goods shall be made on a Trans-
action Request Order, stating the reasons for such repairs or maintenance.

(3) The Authority shall request the Free Zone Customs Command, Pre-shiprnent In-
spection Agent and Nigerian Ports Authority to examine the items to be utilised for the
repairs or maintenance of the goods.

(4) The Pre-shipment Inspection Agent shall issue a Clean Report of Inspection on
the goods utilised for the repairs or maintenance, for the purposes of payment of duties.

27. Repairs and maintenance of goods in the Free Zone from the Customs Terri-
tory for export

(1) A licensee or any other person may apply to the Authority for, the repairs or
maintenance in the Free Zone of goods from the Customs Territory, for purposes of
export.

(2) The application for the repairs or maintenance of the goods shall be made on a
Transaction Request Order, stating the reasons for such repairs or maintenance.

(3) The Authority shall request the Free Zone Customs Command and the Nigerian
Ports Authority to examine and release the items to be utilised for the repairs and mainte-
nance of the goods.

showing the description and value of spare parts and components from the Free Zone
stock items, which have been utilised in the repairs or maintenance of the goods.

(5) The Authority shall request the Terminal Operator to deliver the goods repaired
or maintained on board the vessels or aircraft under Free Zone Customs Escort.

(6) The Free Zone Customs Escort shall present the release documents to the captain
of the vessel or aircraft for endorsement as evidence of shipment or airfreight of the
goods.

(7) The Free Zone Customs Escort shall deliver the endorsed release documents to
the Authority, Free Zone Customs Command and the Nigerian Ports Authority for the
purposes of deleting the goods from the cargo inventory.

(8) The licensee or the beneficiary of the services shall perfect an Export Bill of Entry
for final release by the Free Zone Customs Command for purposes of export.

28. Coods for repairs or maintenance in the Customs Territory from the Free Zone
     (1) A licensee may apply to the Authority for the repairs or maintenance of the goods
situate at or from the Customs Territory in the Free Zone.

(2) The application for the repairs or maintenance of the goods shall be made on a
Transaction Request Order, stating the reasons for such repairs or maintenance.

(3) The Authority shall request the Free Zone Customs Command and the Nigerian
Ports Authority to examine and release the goods from the Free Zone for repairs or main-
tenance in the Customs Territory.

(4) The goods for repairs or maintenance shall be exported under Free Zone Customs
Escort to the Customs Territory.

(5) The release documents issued by Free Zone Customs Command shall specify the
duration of the repairs or maintenance, the Free Zone Customs Command may extend the
duration for the repairs or maintenance.

(6) Customs duty shall be charged on any goods not returned within the time limit
specified in the release documents, unless an application for an extension of time is made
by the licensee and approved by the Free Zone Customs Command.

(7) Upon the completion of the repairs or maintenance of the goods, the licensee shall
import the goods under the Free Zone Customs Escort into the Free Zone.

(8) The Free Zone Customs Command and the Nigerian Ports Authority shall exam-
ine, reconcile and verify the repaired or maintained goods imported into the Free Zone.

29. Procedures for transferring goods between licensees

(1) Where a licensee desires to sell goods situate in the Free Zone to another licensee,
the licensee purchasing the goods shall complete and submit a Transaction Request Order
to the Authority, together with all the relevant documents relating to the goods to be
purchased.

toms Territory set out in regulation 22 of these Regulations shall apply to the transfer of
goods between licensees.

(3) Where a licensee sells goods situate in the Free Zone to another licensee, the ven-
dor licensee shall complete a Transaction Request Order specifying, among other things,
that the goods are not for immediate consumption, transfer or export, as the case may be.

(4) The Authority shall notify the parties in writing, where the Transaction Request
Order is not approved.

30. Procedures for transferring goods from a Free Zone to another

(1) The transfer of goods from a Free Zone overseas to a Free Zone in Nigeria shall,
in the normal course of business be regarded as export.

(2) Where the transfer of goods is between two Free Zones in Nigeria, the approval
of the Authority shall be obtained and the goods shall be transferred under Free Zone
Customs Escort.

(3) The Free Zone Customs Escort shall deliver the endorsed landing certificate to
the Authority, Free Zone Customs Command and Nigerian Ports Authority as evidence of
transfer of the goods and for purposes of deleting the goods from the cargo inventory.

PART III

Licensing of Business Entities within the Free Zone

31. Form of application for licence

An application for a licence shall be made to the Authority by completing and filing
with the Authority, an application form.

32. Types of licences

(1) Subject to the provisions of the Act and these Regulations, the Authority may,

grant an approved applicant one or more of the following licences-

       (a)       a general licence; or

       (b)       a special licence; or

       (c)        a Free Zone enterprise licence.

(2) For purposes of obtaining a general licence, an entity shall-

       (a)       hold a valid Certificate of Incorporation, issued by the Registrar of Companies
in Nigeria; and

       (b)       have a permit from the Department of Petroleum Resources to operate as an oil
and gas service company in Nigeria.

(3) For the purposes of obtaining a special licence, an offshore entity shall produce
evidence of a notarised Certificate of Incorporation in the country of origin, together with
the Memorandum and Articles of Association.

Free Zone.

33. Free Zone enterprise licence

(1) The Authority may issue a Free Zone enterprise licence to an approved applicant
who has satisfied the requirements prescribed by the Authority.

(2) For the purposes of issuing a Free Zone enterprise licence, an applicant shall
submit its business plan to the Authority for appraisal.

(3) An applicant for a grant of a Free Zone Enterprise licence shall produce a bond to
the Free Zone Registrar, in accordance with the tariffs prescribed by the Authority.

(4) A Free Zone licensee shall operate only within the Free Zone.

(5) A Free Zone licence shall specify the activities to be undertaken by the licensee in
the Free Zone.

34. Continuing obligations of a licensee 
A Free Zone licensee shall-

       (a)              at all times, comply with the terms and conditions of the licence and any lease
agreement;

       (b)              comply with administrative directives and circulars issued by the Authority,
from time to time;

      (c)              comply with the Laws of Nigeria, to the extent in which they are applicable in
the Free Zone;

       (d)              submit to the Authority, at such intervals that may be prescribed by the Au-
thority, such statistical data, information and returns as regards the audited ac-
counts, sales, purchases and other operations of the licensee, as the Authority
may require or prescribe, from time to time.

35. Renewal of licence

(1) A licence shall be valid for one calendar year.

(2) Upon expiration, a licence shall be renewed on-

       (a)       payment of the prescribed fees;

       (b)       payment of any outstanding amount due to the Authority;  

        (c)        the presentation of any other documents, returns or information which the
Authority may require; and

        (d)       the presentation of an acceptable appraisal report in the case of a Free Zone
enterprise.

  36. Premises

A licensee shall enter into a lease agreement in respect of any parcel of land or prem-
ises which the licensee proposes to hold.

(1) Upon application ofa licensee, the Authority may amend its licence.

(2) The Authority may withdraw or revoke a licence for non-compliance with the re-
quirements of the licence.

(3) A licensee may surrender a current licence at any time, in accordance with any
conditions that may be imposed by the Authority.

38. Annulment of an operational licence

The operational licence of a licensee may be annulled if any of the following circum-
stances are confirmed by an investigation carried out by the Authority-

             (a)        where it is confirmed, through a written report that there has been an act con-
trary to the provisions of the law, these Regulations, guidelines, circulars and
directives issued by the Authority, which is detrimental to peace and order in
the Free Zone;

             (b)        where it is established that a licensee has evaded tax, such as the enjoyment of
earnings accruing from business activities conducted in the Customs Territory;
and

                                 (c)        where it is established that a licensee has presented a forged document.

(2) A licensee whose licence has been annulled shall forfeit the licence fee paid to the
Authority.

(3) A Free Zone enterprise, which carries on its activities in the Free Zone despite the
expiration of or annulment of its operational licence shall be expelled from the Free Zone
by the Nigeria Police or Free Zone Customs command, on the request of the Authority
and the property of the affected licensee shall be confiscated.

39. Licence fees

(1) A licensee shall pay its licence fees, in accordance with the tariffs prescribed by
the Authority, from time to time.

(2) The fee for amending a licence shall be as prescribed by the Authority.

(3) An application by a licensee to amend the approved activities specified in a li-
cence shall be deemed to be an application for a new licence and fees shall be charged as
prescribed by the Authority.

(4) The Authority reserves the right to review the tariffs for operations in the Free
Zone, from time to time.

PART IV

Free Zone Enterprises Procedures

40. Formation of Free Zone enterprises

(1) Any company or any other entity or person who desires to form a Free Zone en-
terprise shall complete and submit to the Authority, the prescribed application form and a
proposed business plan with all the necessary information and documentation.

ments for the formation of Free Zone enterprises.

(3) The Authority shall notify the applicant in writing of any decision made
within 30 days of the receipt of the application.

(4) The Authority may modify the requirements for the formation of a Free Zone
enterprise.

41. Issuance of certificate

(1) A successful applicant for the formation of a Free Zone enterprise shall, be issued
with a certificate which shall contain, among other things, the date of registration, name
of the enterprise and the seal of the Authority.

(2) A Free Zone enterprise shall be deemed to be duly formed with effect from the
date of registration thereof.

42. Share capital

(1) The share capital of a Free Zone enterprise shall be- 

(a)      denominated in either Nigerian official currency or any other international
currency acceptable to the Authority;

       (b)       divided into unit of shares as the Authority may, from time to time determine,

and each unit of shares shall be evidenced by a share certificate;

       (c)        paid in cash or by valuable assets.

(2) Any transaction in shares or securities shall have prior approval of the Authority.
(3) The share capital of a Free Zone enterprise may be altered by the owner's decla-

ration, subject to the prior approval of the Authority and the details of the alteration shall
be entered into the Free Zone enterprises register, maintained and kept by the Authority
and shall take effect from the date of registration.

(4) Any Free Zone enterprise, undertaking an approved activity in the Free Zone shall
notify the Registrar of any purchase, assignment or transfer of shares in the enterprise,
except where its shares are quoted and are transferable on any international Stock
Exchange.

43. Name of a Free Zone enterprise

(1) The name of a Free Zone enterprise shall end with the initials "FZE" and shall not
be registered in the Free Zone enterprises register with a name which is not approved by
the Authority.

(2) A Free Zone enterprise may change its name by the owner's declaration, subject
to the proposed name being approved by the Authority.

(3) The new name of the Free Zone enterprise shall be entered into the Free Zone en-
terprises register and a certificate of change of name issued by the Authority.

(4) The certificate of change of name shall specify, among other things, the date of
registration of the new name, the new name of the Free Zone enterprise and the seal of
the Authority.

(1) A Free Zone enterprise shall at all times, have a registered address within the Free
Zone to which all communication and notices shall be addressed.

(2) The Authority shall be notified of any change of address within 14 days thereof.

45. Sign-name plate

A Free Zone enterprise shall affix and keep affixed, its sign-name plate in legible let-
ters and in a conspicuous position, in the registered office or place of business in the Free
Zone.

46. Correspondence, etc.

A Free Zone enterprise shall have its name printed in legible letters in all business let-
ters, notices and other official publications, including promissory notes, cheques, bills of
exchange, orders for money, goods or services purported to be signed by or on behalf of
the Free Zone enterprise and in all parcels, invoices, receipts, letters of credit and
guarantees.

PART V

Banking Procedures

47. Banking activities in the Free Zone

(1) Without prejudice to the Central Bank Act, the Authority may, permit a bank to
maintain a branch in the Free Zone to offer banking services.

[L.F.N. 2004 Cap. C4.]

(2) A bank operating in the Free Zone shall not be entitled to any incentives granted
to the Free Zone licensees, except the importation of any item to be consumed by the
bank in the Free Zone as set out in the Act.

(3) Any bank operating in the Free Zone shall comply with the Central Bank of Nigeria
guidelines on offshore banking.

(4) A Free Zone account shall be denominated in either Nigerian official currency or
any other internationally acceptable currency to the Authority.

PART VI

Health, Safety and Environment

48. Management of health, safety and environmental matters within the Free Zone
     (1) The Authority shall ensure that all Free Zone enterprises comply with all health,
safety and environmental laws and regulations made thereunder.

(2) Any incident involving loss and material damage or physical injury in the Free
Zone shall be reported to the Authority as soon as practicable after the incident.

PART VII

Planning and Construction Procedures

49. Acquisition of land

(1) Without prej udice to the provisions of the Land Use Act, any land under the con-
trol or management of the Nigerian Ports Authority shall be acquired, leased or trans-
ferred to an investor by the Nigerian Ports Authority.

[L.F.N. 2004 Cap. L5.]

(2) An investor shall take lease from the Nigerian Ports Authority, in respect of any
land situate in the Free Zone, but within the Ports Area and owned by the Nigerian Ports
Authority, on the terms and conditions prescribed by the Nigerian Ports Authority.

(3) An investor shall take lease from the Authority, in respect of any land outside the
control or management of the Nigerian Ports Authority but situate within the Free Zone.

(4) A Free Zone entity shall present to the Authority, a written report of any applica-
tion for lease or acquisition of land in the Free Zone.

PART VIII

Miscellaneous

50. Immigration procedures

(1) Notwithstanding the provisions of the Immigration Act, any approved Free Zone
entity, employing or engaging the services of any non-Nigerian shall, comply with the
requirements set out by the Free Zone Immigration Command.

(2) The Authority shall in consultation with the Free Zone Immigration Command,
publish the guidelines and procedures on immigration matters applicable in the Free
Zone.

(3) The Authority shall make available, the guidelines and procedures mentioned in
subregulation (2) of this regulation to the licensees.

51. Guidelines

The Authority shall publish or cause to be published all guidelines relating to admini-
stration, management and operations of the Free Zone.

52. Interpretation

In these Regulations-

"Act" means the Oil and Gas Export Free Zone Act, L.F.N. 2004 Cap. 05;

"applicant" means an entity which has duly completed, signed and submitted an ap-
plication form to the Authority;

"Authority" means the Oil and Gas Export Free Zone Authority, established under
section 2 of the Oil and Gas Export Free Zone Act, 1996;

Cap. 28 L.F.N. to carry on banking business in Nigeria;

"bank pay-in-slip" means a receipt, issued by a bank for payment made in respect of
Customs duties and other import related levies and charges;

"circular" means notices or any periodic information issued by the Authority, Gov-
ernment or any of its agencies;

"country of origin" means in the case of a foreign entity, a jurisdiction other than
Nigeria and in the case of a domestic entity, the Free Zone and for the purposes of inspec-
tion, the country of origin means the country of manufacture or last country where value
was added to the goods;

"Customs Bill of Entry" means the form issued by the Nigeria Customs Service, for
the purpose of the declaration of goods or single goods declaration;

"Delivery Order" means a form issued by the Nigerian Ports Authority to the im-
porter through the shipping line;

"domestic entity" means any entity duly registered and licensed by the appropriate
authorities to carry on business in Nigeria;

"Export Bill of Entry" means a document issued by the Nigeria Customs Service for
the purpose of exportation of goods;

"Export Declaration" means a document issued by the Nigeria Customs Service for
the purpose of declaring goods for export;

"foreign entity" means any entity duly registered and licensed by the appropriate
authorities in its country of origin to carry on business anywhere, including Nigeria;

"Foreign Territory" means the Free Zone and any territory other than the Customs
Territory;

"Form M" means a document issued by the Central Bank of Nigeria for the purpose
of importation of goods into Nigeria;

"Free Zone" means the area designated as a Free Zone by the President of the Fed-
eral Republic of Nigeria;

"Free Zone circular" means a notice issued or information disseminated by the
Authority, from time to time;

"Free Zone Customs Guarantee" means a guarantee or bond issued by a bank or
any other financial institution on behalf of a licensee and on the terms approved by the
Authority and acceptable to the Free Zone Customs Command;

"lease agreement" means a legal agreement in respect of land or property acquired in
the Free Zone;