Trinidad and Tobago Free Zones Programme: Incentives, Criteria, and Benefits

1. THE TRINIDAD AND TOBAGO FREE ZONES COMPANY LIMITED Presentation to the TTMA 27th October, 2015Presented by: Debra Maloney - CEO

2. Background to the Trinidad and Tobago Free Zones Programme TABLE of CONTENTS Incentives of the Trinidad and Tobago Free Zones Programme Qualifying Criteria and Application Process Benefits to the Local Economy Challenges to Local Manufacturers Conclusion

3. Core Tenets of today’s Presentation

4. Background – The Free Zones Programme The Free Zones Programme has been in existence for the past 27 years The TTFZ provides Facilitation Services to prospective and approved free zone enterprises The Free Zones Programme caters to the Manufacturing, International Trading and Services Sectors As such, we are well poised to cater to Investor Needs The TTFZ aligns itself to other investment agencies to ensure a successful investor experience Approved Free Zone enterprises can set-up operations throughout Trinidad and Tobago

5. FREE ZONE INCENTIVES • Exemption from customs duties on capital goods, spare parts, raw materials etc.; • No import or export licensing requirements; • Exemption from land and building taxes; • No fees for work permits; • Exemption from income, corporation or withholding taxes or levies on sales or profits; • No property ownership restrictions

6. QUALIFYING CRITERIA / APPLICATION PROCESS • Free Zone projects should conform to the following objectives: • The creation of jobs • Development of new skills & deepening of the technology base • The export of goods or services – 75% (manufacturing & international trading) / 50% (services) • New investment (subsidiary company where required) • Entry to new markets • Activities which qualify for Free Zone approval are: - manufacturing, international trading in products and services, all for export. • A Free Zone enterprise must be a company incorporated or registered in Trinidad and Tobago. • Petroleum, natural gas or primary petrochemical production or any production activity, in which petroleum, natural gas or petrochemicals are a major input, even if used as fuel, would not qualify for Free Zone approval.

7. APPLICATION PROCESS Below is an outline of the process: Submit detailed business plan (FZ-1 form provides guidance) These are some of the questions your Business Plan should address: What is the nature of the business.  Please detail. How long has the company been in operation.  What is the level of new investment. How many persons are employed.  What will be the increased level of staff as a result of this investment. What are the benefits of granting this project free zone status The TTFZ's Board of Directors reviews business plan and determines fitness for approval Once approval is granted submit Application Forms and requisite supporting documents (2 sets of forms required: one for activity and the other for location where applicable

8. APPLICATION PROCESS Below is an outline of the process: Upon receipt of completed application forms, the TTFZ will simultaneously prepare free zone orders and free zones agreement Free zone orders (approval and designation orders) will be submitted to the Ministry of the AG for formal legal drafting The free zone agreement will be forwarded to you for review while the orders are being prepared by the Ministry of the AG Upon receipt of both signed Orders (approval and designation) you will be called in to sign free zone agreement and receive free zone orders.

9. APPLICATION PROCESS CONT’D Below is an outline of the process: The free zone orders will be forwarded to the Ministry of the AG for onward transmission to the Government Printery for gazetting to be made legal notices. Once you have signed the free zone agreement and received the fee zone orders, you may begin your operations as an approved free zone enterprise A reporting template will be provided for you to submit quarterly reports on your free zone activity to the TTFZ along with the payment of your quarterly fee. Requisite state bodies will be informed of your free zone status

10. BENEFITS TO THE LOCAL ECONOMY • The Trinidad and Tobago Free Zones Programme is expected to generate significant alternative financial and other benefits, namely to: • Increase the export of goods or services • Create jobs and employment • Develop new skills and increase existing workforce skills • Stimulate technology transfer and deepen the country’s technology base • Generate net foreign exchange earnings • Increase access to overseas markets • Attract new investments • Use local raw materials, manufactured goods and services

11. CHALLENGES The following challenges should be noted: Certificates of Origin – Council on Trade & Economic Development Export Ratio – Ability to meet threshold / Possibility of Tiered System Qualifying Criteria (new employment, new export markets, new skills & technologies, foreign exchange earnings) Infrastructural Adjustments may be required (fencing, security, signage requirements) – Separate from Customs Territory VAT refunds – No Easier Under Free Zones Programme

12. CONCLUSION In light of prevailing economic circumstances, GORTT and the TTFZ by extension welcomes the opportunity to partner with local manufacturers toward the achievement of our diversification agenda. To this end, we welcome all inquiries and expressions of interest. We are here to serve… We are eager to assist you to transform attractive investment opportunities into your realities. We are just a click or call away… Web: www.ttfzco.com Email: ceo@ttfzco.com Tel: 1-868-625-4749 / 1-868-623-8363 Fax: 1-868-625-4755

13. QUESTIONS THE TRINIDAD AND TOBAGO FREE ZONES PROGRAMME “A World of Opportunities Brought to Life”