Free Zone Pirot presentation - Slobodna zona Pirot
Free Zone Pirot presentation - Slobodna zona Pirot
Free Zone Pirot presentation - Slobodna zona Pirot
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FREE ZONES ZONES<br />
IN WORLD<br />
FREE ZONE PIROT<br />
Dragan Kostić, Kosti , managing director<br />
e-mail: dkostic@tigar.com
What the free zones are<br />
<strong>Free</strong> zone is part of the territory of SR<br />
Yugoslavia, separate<br />
fenced and marked, where works can be<br />
performed under<br />
GUARANTTED SUITABLE AND FACILITY<br />
CONDITION
THE FREE ZONE REGULATION<br />
National <strong>Free</strong> <strong>Zone</strong> Law 1994 god<br />
EU Law Community Customs Code<br />
GATT (General ( General Agreement on Tariffs and Trade) Trade)<br />
KYOTO CONVENTION and revised KYOTO CONVENTION 1999 god ON<br />
THE SIMPLIFICATION AND HARMONISATION OF CUSTOMS<br />
PROCEDURES<br />
WTO AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES
Why do free zones exists ?<br />
Enable users SAVING IN BUSINESS<br />
(duty, tax, stimulate measures of economic policy)<br />
Concentrate services and needs in one place -<br />
LOGISTICS CENTRE<br />
They are means to ATTRACT INVESTMENTS in the<br />
service of regional development<br />
Enable INCREASE NUMBER OF EMPLOYED<br />
DIRECT international trade under controlled<br />
channels
Mission of free zones<br />
To provide the most favourable condition for<br />
business that enable attraction investments and<br />
making profit for the purpose of satisfaction of<br />
interest of users of zone, economy and state.<br />
Aim<br />
AIM is attraction investments for the purpose of<br />
promoting economic advancement and employment .
Activities in free zones<br />
Production of goods, finishing, LON works, storage of<br />
goods and raw materials, reload, packing, bank and<br />
financial activities, insurance and reinsurance,<br />
tourist and all other services and activities, which do<br />
not pollute environment.
ADVANTAGES OF CONDUCTING ACTIVITIES<br />
IMPORT OF GOODS AND SERVICES IN THE ZONE AND EXPORT OF<br />
GOODS AND SERVICES FROM THE ZONE ARE FREE<br />
THERE IS NO OBLIGATION TO PAY CUSTOMS DUTIES AND OTHER IMPORT<br />
CHARGES (VAT) FOR IMPORT OF RAW MATERIALS<br />
THERE IS NO OBLIGATION TO PAY CUSTOMS DUTIES AND OTHER<br />
IMPORT CHARGES (VAT) FOR IMPORTED EQUIPMENT, MACHINERY<br />
AND BUILDING MATERIALS<br />
100 % FOREIGN INVESTMENT ALLOWED<br />
100 % FOREIGN OWNERSHIP ON OBJECT ALLOWED<br />
FOREIGN PERSON MAY FREELY TRANSFER HIS BASIS OF CAPITAL<br />
AND PROFIT REPATRIATION .
THE GROWTH OF FREE ZONES WORLDWIDE<br />
Source: ILO (2003), EU Commission (2002)<br />
GEOGRAPHICAL AREA<br />
Europe<br />
North America<br />
Transition Economies<br />
(Central<br />
Europe)<br />
North Africa<br />
and Eastern<br />
Sub-Saharan Africa<br />
Indian Ocean<br />
Middle East<br />
Asia<br />
Central America<br />
South America<br />
Caribbean<br />
Pacific<br />
NO. OF 'ZONES'<br />
(including EPZs)<br />
55<br />
713<br />
90<br />
23<br />
64<br />
3<br />
37<br />
749<br />
3300 (of which 3228<br />
maquiladoras in<br />
Mexico)<br />
39<br />
87<br />
14
JOBS CREATION OF FREE ZONES WORLDWIDE<br />
GEOGRAPHICAL AREA<br />
Europe<br />
North America (excl. Canada)<br />
Transition Economies (Central and<br />
Eastern Europe)<br />
North Africa<br />
Sub-Saharan Africa<br />
Indian Ocean<br />
Middle East<br />
Asia<br />
Central America<br />
South America<br />
Caribbean<br />
Pacific<br />
TOTAL<br />
Source: ILO (2003)<br />
EMPLOYMENT GENERATED<br />
(1999-2002) *<br />
43,599<br />
315,000<br />
480,590<br />
440,515<br />
414,460<br />
166,507<br />
328,932<br />
36,285,033<br />
4,535,557<br />
304,200<br />
220,078<br />
13,590<br />
43,548,021<br />
of which 30.000.000 in China alone<br />
* 2002 or latest year available since 1999
FREE ZONES ALL OVER THE WORLD<br />
5000 free zones are allocated in 102 countries.<br />
PIROT
madeira<br />
las palmas de<br />
gran canaria<br />
vigo<br />
ringaskiddy<br />
ronaldsway onaldsway<br />
humberside<br />
copenhagen<br />
shanon<br />
liverpool<br />
tilbury<br />
hamburg<br />
bremen<br />
sherness<br />
bremenhaven<br />
emden<br />
southampton<br />
cuxhaven<br />
duisburg<br />
kiel<br />
deggendorf<br />
cadiz<br />
bordeaux<br />
barcelona<br />
prestwick<br />
trieste<br />
venice<br />
thessaloniki<br />
piraeus<br />
lappeenranta<br />
hangon<br />
heraclion<br />
SLOBODNE ZONE U EVROPSKOJ UNIJI
shanon<br />
shanon<br />
copenhagen<br />
bremen<br />
bremen<br />
bremenhaven<br />
bremenhaven<br />
cuxhaven<br />
cuxhaven<br />
deggendorf<br />
deggendorf<br />
duisburg<br />
duisburg<br />
emden<br />
emden<br />
hamburg<br />
hamburg<br />
lappeenranta<br />
lappeenranta<br />
hangon<br />
hangon<br />
bordeaux<br />
bordeaux<br />
ringaskiddy<br />
ringaskiddy<br />
madeira<br />
madeira<br />
barcelona<br />
barcelona<br />
las<br />
las palmas<br />
palmas de<br />
de<br />
gran<br />
gran canaria<br />
canaria<br />
vigo<br />
vigo<br />
cadiz<br />
cadiz<br />
trieste<br />
trieste<br />
venice<br />
venice<br />
liverpool<br />
liverpool<br />
ronaldsway<br />
onaldsway<br />
prestwick<br />
prestwick<br />
southampton<br />
southampton<br />
tilbury<br />
tilbury<br />
sherness<br />
sherness<br />
humberside<br />
humberside<br />
piraeus<br />
piraeus<br />
thessaloniki<br />
thessaloniki<br />
heraclion<br />
SLOBODNE ZONE U EVROPI<br />
SLOBODNE ZONE U EVROPI<br />
kiel<br />
kiel<br />
budapest<br />
budapest<br />
bar<br />
bar<br />
pirot<br />
pirot<br />
kotor<br />
kotor<br />
novi<br />
novi sad<br />
sad<br />
beograd<br />
beograd<br />
senta<br />
senta<br />
sr.<br />
sr.mitrovica<br />
mitrovica sombor<br />
sombor<br />
sabac<br />
sabac<br />
prahovo<br />
prahovo<br />
nis<br />
nis<br />
ISE<br />
ISE<br />
yumurtalik<br />
yumurtalik<br />
east<br />
east anatolian<br />
anatolian<br />
isanbul ataturk<br />
isanbul ataturk<br />
istanbul<br />
istanbul<br />
leather<br />
leather<br />
mardin<br />
mardin<br />
mersin<br />
mersin<br />
samsun<br />
samsun<br />
trabzon<br />
trabzon<br />
antalya<br />
antalya<br />
aegean<br />
aegean<br />
celje<br />
celje<br />
gorica<br />
gorica<br />
gorica<br />
gorica f.z.<br />
f.z.<br />
b.<br />
b.bystrica<br />
bystrica<br />
yantar<br />
yantar<br />
sheremetievo<br />
sheremetievo<br />
galati<br />
galati<br />
sulina<br />
sulina<br />
braila<br />
braila<br />
constantza<br />
constantza<br />
szczecin<br />
szczecin<br />
zarnowiec<br />
zarnowiec<br />
latvia<br />
latvia<br />
larnaca<br />
larnaca<br />
osijek<br />
osijek<br />
rijeka<br />
rijeka<br />
split<br />
split<br />
zgb<br />
zgb.<br />
bourgas<br />
bourgas 3 f.z.<br />
3 f.z.<br />
rousse<br />
rousse<br />
dragoman<br />
dragoman<br />
svilengrad<br />
svilengrad<br />
vidin<br />
vidin<br />
betriebsges<br />
betriebsges<br />
zoll<br />
zoll-graz<br />
graz<br />
tirol<br />
tirol<br />
cadiz<br />
cadiz<br />
gibraltar<br />
gibraltar<br />
icelandic<br />
icelandic<br />
famagusta<br />
famagusta<br />
chisinau<br />
chisinau<br />
tvardita<br />
tvardita<br />
kalafrana<br />
kalafrana
MEXICO 107 F.Z.<br />
el wajau<br />
mariel<br />
berroa cienfuegos<br />
kingston<br />
SLOBODNE ZONE USD<br />
airport bahamas<br />
port bahamas<br />
garmex<br />
montego bay
elize<br />
commercial<br />
la aurora<br />
bushiri<br />
castilla<br />
oranjestaad<br />
honduras<br />
cul-de cul de-sac sac inter continental business<br />
costa rica<br />
valencia-san<br />
valencia san diegoa<br />
la union<br />
9 f.z.<br />
colon<br />
paraguana<br />
panama<br />
paraguana<br />
las mercedes<br />
zonexport<br />
el salvador 8 f.z.<br />
isla margarita<br />
cuenca ind.park. ind.park.<br />
esmeraldas ecuad. ecuad<br />
colombia 11 f.z.<br />
park industriel<br />
Ilo<br />
ZOFRI<br />
inquiqee<br />
franca mendozaa<br />
punta arenas<br />
guadelope<br />
barcadera<br />
el alto<br />
nueva palmirao<br />
santa<br />
cruzo<br />
yacuiba<br />
dominican republic 28 f.z.<br />
hato<br />
vieux fort<br />
de manaus. manaus<br />
la plata<br />
corumba<br />
florida<br />
boar<br />
montevideo<br />
comodoro rivadaviao<br />
tierra del fuego<br />
santa<br />
catarina<br />
t. otoni tocantins<br />
rio grande<br />
imbituba<br />
ilheus<br />
SLOBODNE ZONE U JUZNOJ AMERICI
cape verde<br />
dakar<br />
tangier’s port<br />
liberia<br />
port d’abidjan<br />
togo<br />
calabar<br />
zarzis<br />
lobito<br />
tripoli<br />
walvis bay<br />
Alexandriaa<br />
ismaileya<br />
damietta<br />
al-gaili al gaili port sudan<br />
port said<br />
al-ganaina al ganaina<br />
burundi<br />
nasr city<br />
suez<br />
beira<br />
maputo<br />
beirut<br />
jordan 7 f.z.<br />
sudanese<br />
ammani<br />
red sea<br />
harare<br />
djibouti<br />
micheveni<br />
fumba<br />
aden<br />
Kenya 14 f.z.<br />
koggala<br />
katanayake<br />
biuagama<br />
SLOBODNE ZONE U AFRICI<br />
mauritius freeport<br />
mauritius zone
likit<br />
eilat<br />
haifa<br />
ashdod<br />
chabahar<br />
sarkhs<br />
kish<br />
kuwait<br />
ahmed bin<br />
rashid<br />
dubai aeroport<br />
sharjah<br />
sirjan<br />
queshm<br />
jebel ali fujairah<br />
mangistau<br />
karachi<br />
lisakovsk<br />
special<br />
noida<br />
santa cruz<br />
cochin<br />
visakhapatnam<br />
biuagama<br />
madras<br />
katunayake<br />
falta<br />
koggala<br />
kandia<br />
ha erbin<br />
huhe haote 3 z.<br />
shenyang<br />
tiexi<br />
yin kou<br />
huhe haote 3 z.<br />
dalian<br />
tianjin 3 f.z.<br />
wei hai<br />
nakhodka<br />
/russian russian f.e.z./<br />
SLOBODNE ZONE U AZIJI<br />
chang sha xin sha<br />
shenyang n. railway<br />
dalian<br />
beijing<br />
masan<br />
beijling lion<br />
wan ding<br />
lian jungang<br />
su zhou<br />
shangai<br />
zhe jang<br />
jiujiang<br />
12 f.z.<br />
huang shi<br />
7 zones<br />
suzhou<br />
okinawa<br />
san xia<br />
itoman<br />
wan xian<br />
jiu jiang<br />
chanbei<br />
nakajo<br />
shenzhen spec.<br />
kun ming<br />
shenzhen<br />
shin naha<br />
korean<br />
shatoujiao<br />
taiwan 3 e.p.z.<br />
chu xiong<br />
dhaka<br />
tai po<br />
fuzhou fujian 7 f.z.<br />
fangchen<br />
shan tou guang 2 f.z.<br />
chittagong<br />
tai po<br />
bataan<br />
tseung kwan<br />
vietnam<br />
he kou<br />
bataan<br />
6 <strong>zona</strong><br />
hai kou b.z.<br />
tabangao<br />
victoria wave<br />
thailand<br />
hainan s.e.z.<br />
10 <strong>zona</strong><br />
cavite<br />
gateway<br />
first cavite<br />
subic bay<br />
laguna<br />
mactan<br />
laguna<br />
light<br />
int.<br />
baguio<br />
industry
pilau pinang<br />
penang 9 <strong>zona</strong><br />
telok panglima<br />
pasir guandang<br />
port klang<br />
pt kabil<br />
jakarta 8 <strong>zona</strong> jakarta east<br />
calung 9 <strong>zona</strong> tanjung tanjung emas<br />
jakarta west i<br />
north 8 <strong>zona</strong><br />
trade development zone<br />
SLOBODNE ZONE U AUSTRALIJI
DISTRIBUTION 3<br />
FREE ZONES<br />
IN REPUBLIC OF<br />
SERBIA<br />
FREE<br />
ZONES<br />
Subotica<br />
Zrenjanin<br />
PIROT
SERBIA’S ADVANTAGES<br />
• Strategic positioning for markets in Europe, Asia and<br />
the Middle East ( Pan European Corridors No. 10 and<br />
No.7 and No.8)<br />
• Duty free access to the South East Europe <strong>Free</strong> Trade <strong>Zone</strong><br />
• Lowest corporate profit tax rate in Europe (10%)<br />
• Skilled labor at a reasonable cost<br />
• <strong>Free</strong> trade agreement with the Russian Federation
Low Labour Costs per Employee<br />
Serbia<br />
Romania<br />
Hungary<br />
Czech R.<br />
Poland<br />
258<br />
329<br />
539<br />
560<br />
763<br />
Croatia 798
Favourable Tax Regime<br />
Serbia 10%<br />
Lowest Corporate Profit Tax rate in Europe<br />
Hungary 16%<br />
Poland 19%<br />
Bulgaria 19.5%<br />
Croatia 20%<br />
Czech Republic 28%
Favourable Tax Regime<br />
Individual Income Tax Rates<br />
Serbia 14-24%*<br />
Slovenia 5-30%<br />
Romania 18-40%<br />
Bulgaria 17-50%<br />
Croatia 32-56%<br />
* 10% flat tax rate only on portion of income surpassing the tax threshold
Taxes<br />
Value Added Tax rates - 18% and 8%<br />
(NO in <strong>Free</strong> <strong>Zone</strong>s)<br />
Corporate Profit Tax rate - 10%<br />
Salary Tax rate - 14%<br />
Social Security Contributions<br />
• pension and disability contributions – 11%<br />
• health insurance – 6,15%<br />
• unemployment contributions – 0,75%
Serbian Tax System<br />
Corporate Profit Tax<br />
• Corporate profit tax is levied at the rate of 10% on the profit<br />
generated by the taxpayer, as reported in the annual tax returns<br />
• Taxable profit is established on the basis of the accounting profit<br />
reported in the annual statutory statement of income<br />
• Dividends, share of profits, royalties, interest, capital gains and<br />
income deriving from the leasing of real estate and/or movable<br />
property, received by a non-resident entity from a resident entity are<br />
taxed at the rate of 20%
Value Added Tax<br />
Serbian Tax System<br />
• VAT rates are 18% and 8% (for 13 groups of products)<br />
• Tax base is the value received in return for the provision of goods and services,<br />
and it includes all excise duties, customs duties and all public revenues except<br />
VAT, together with the overhead expenses calculated by the provider of goods<br />
and services<br />
• The surplus of paid tax is to be refunded within 45 days from the end of the<br />
deadline for submission of the tax return, except in the case of large exporters<br />
where the timeframe for refund is 15 days from the end of the deadline for the<br />
submission of the tax return<br />
• VAT on imports is regulated in accordance with the customs regulation. Customs<br />
authorities are in charge of calculating and collecting VAT on imports
Investment Incentives in Serbia<br />
The lowest corporate profit tax rate – 10%<br />
Large investment projects: 600 mill CSD, 100 working<br />
places-10 year tax holiday<br />
Tax relief up to 2 years for hiring new employees<br />
Tax credit up to 80% of investment amount for investing<br />
in fixed assets<br />
Import of equipment as investment is free from custom<br />
duties, VAT is charged ( NO in <strong>Free</strong> <strong>Zone</strong>s)
SLOBODNA ZONA PIROT<br />
FREE ZONE PIROT, JOINT-STOCK JOINT STOCK COMPANY IS LOCATED ON THE<br />
HIGHWAY E-80, E 80, THE SHORTEST LINK BETWEEN EUROPE AND<br />
ASIA, IN THE INDUSTRY ZONE WITH SUPERIOR<br />
INFRASTRUCTURE PROPERTIES AND EXISTENCE OF INTEGRAL<br />
TRANSPORT CENTRE
BAR<br />
CORRIDOR 10<br />
CORRIDOR 8<br />
SZ PIROT<br />
SOLUN<br />
VARNA<br />
BURGAS<br />
ISTANBUL<br />
MAIN ROAD NETWORK AND CONNECTIONS WITH THE PORTS
REGULATION<br />
PLAN OF<br />
FREE ZONE<br />
PIROT<br />
SERVICES IN FREE ZONE PIROT<br />
• preparing customs documents and follow of work<br />
of the users for all activities<br />
• no obligation to pay customs duties for the goods<br />
produced for export<br />
• services- forwarding, reloading, storage,<br />
finishing, containers terminal<br />
• organization of international transport of goods
1. INFRASTRUCTURE<br />
power supply<br />
water and sewerage sys.<br />
optical telephone cable<br />
international highway corridor<br />
10<br />
railway (side track)<br />
2. BUILT CAPICTY<br />
production 2.500 m2<br />
storage 15.000 m2<br />
for building 30.000 m2
BUILDING OF OBJECTS<br />
BUILDING OBJECTS IN<br />
ZONE ARE FREE OF<br />
CHARGE FOR ALL<br />
MUNICIPALE CHARGES<br />
( 20 % less price for building)<br />
USING OBJECTS IN ZONE<br />
ARE FREE OF CHARGE<br />
FOR ALL MUNICIPALE<br />
CHARGES FOR THE 5.<br />
YEAR PERIOD
MAIN PRODUCTIONS IN FREE ZONE PIROT<br />
TYRES FACTORY TIGAR MH - MISHELIN
INDUSTRIAL PARK FREE ZONE PIROT<br />
For the purpose to create the most favourable conditions and advance<br />
enterpreneurship, municipal assembly through concerted efforts of<br />
FZ <strong>Pirot</strong>, offer a Special stimulative measures programme within<br />
the Industrial Park FZ <strong>Pirot</strong>.<br />
A. FACILITIES ALLOWED BY FZ<br />
B. STIMULATIVE MEASURES ENABLE BY MUNICIPAL<br />
C. STIMULATIVE MEASURES PROVIDED BY FZ PIROT
FACILITIES ALLOWED BY FZ LAW<br />
• Imports of goods and services into the zone, as well as<br />
exports of goods and services from the zone are free<br />
• Imported raw materials and semi-finished manufactures set<br />
aside for export, are exempted from duty and other import<br />
duties<br />
• Limported equipment, machines and construction materials<br />
are exempted from duty and other taxes<br />
* User of the zone facilities can freely manage foreign<br />
currency which is achieved by business operations in zone
FACILITIES ALLOWED BY FZ LAW<br />
• Beneficial interests of the zone users are established by FZ Law<br />
and they can not be reduced by any other regulation<br />
• Imports of goods into the zone are duty free. Goods from the<br />
<strong>Zone</strong> can be placed to the home market at the customs clearance and<br />
other taxes. If the goods entering the customs area of Serbia are<br />
produced within the <strong>Zone</strong>, or exposed to manipulation at domestic<br />
ingredients sharing, duty is paid according to the rate of foreign<br />
ingredient within the goods.<br />
• Transfer of the profit achieved by the different activities in <strong>Zone</strong><br />
are free.
STIMULATIVE MEASURES ENABLE BY<br />
MUNICIPAL ASSEMBLY of PIROT<br />
If the users are interested in building within the <strong>Free</strong> <strong>Zone</strong>,<br />
they are completely exempted from the following payments:<br />
- costs for the municipal land development<br />
- costs for the municipal taxes and payments(communal<br />
taxes,city planning permission,priority right of building…)<br />
- costs at the public Utility companies waterworks,<br />
sewage distant heating - expenses for the consent to the<br />
system connection
STIMULATIVE MEASURES ENABLE BY<br />
MUNICIPAL ASSEMBLY of PIROT<br />
If the users are interested in building within the <strong>Free</strong> <strong>Zone</strong>,<br />
they are completely exempted from the following payments:<br />
- system connection cost recovery (except material<br />
expenses)<br />
- costs at the Public city planning company:<br />
- expenses for the issued records (documentation) which<br />
are important for the solving of current demands<br />
- costs for the city planning and technical conditions; and<br />
issuing agreement for the building and establishing both<br />
secondary and interim facilities.<br />
- exemption from the payments for the water supplies and<br />
sewage system connection
STIMULATIVE MEASURES ENABLE BY<br />
MUNICIPAL ASSEMBLY of PIROT<br />
• Within the limits of the FZ Industrial Park, users are<br />
exempted from payments such as local communal taxes,<br />
costs for municipal land using, costs for communal<br />
services (10 years).
STIMULATIVE MEASURES PROVIDED<br />
BY FZ PIROT<br />
Besides these activities within the framework of the FZ and Duty <strong>Free</strong><br />
Regime Law, users are offered services within the manufacturing,<br />
storage, merchandise turnover by means of FZ Logistic Centre. These<br />
are:<br />
- supervision and providing free labour for all zone users<br />
- forwarding operations in the field of foreign trade operations<br />
- domestic and international transport organization<br />
- reloading of the goods<br />
- container terminal<br />
- warehousing (in storehouse and outside)<br />
- working system according to the ON Stop Shop principle, which<br />
means that the administrative procedure starts and ends in <strong>Zone</strong> itself.<br />
This procedure refers to goods transportation and agreements and<br />
permissions which fall within customs competence.
EXPORT, IMPORT and PRODUCTION in FREE ZONE PIROT<br />
OPLEMENJIVANJE<br />
finishing, improving<br />
EXPORT<br />
production<br />
IMPORT PORT<br />
FREE ZONE PIROT<br />
Border of SERBIA
FREE ZONE PIROT<br />
18300 <strong>Pirot</strong> Nikole Pasica Str. NN<br />
tel.+38110/ 30 40 71 ; 33 77 99; fax 30 40 73<br />
e-mail: freezpi@tigar.com<br />
www.freezpi.co.yu<br />
Contract Persons: Dragan Kostic, managing director<br />
e-mail: dkostic@tigar.com
KAKO JE SRBIJA SME[TENA NA<br />
DREVNOM STRATE[KOM<br />
RIMSKOM PUTU VIA MILITARIS<br />
SLOBODNE ZONE SRBIJE MOGU<br />
BITI MOST KOOPERACIJE U<br />
TRANSPORTNOM LANCU ROBA<br />
IZMEDJU ISTOKA I ZAPADA.<br />
ZONE IMAJU POTENCIJALE ZA<br />
RAZVOJ PRIVREDE I<br />
INFRASTRUKTURE I AKTIVIRANJE<br />
POSTOJE]IH PRIRODNIH RESURSA<br />
I RADNE SNAGE..