Press Release

Operation of Free Zones in Greece

In General:

Greece has four (4) free-trade zones, located at the Piraeus, Thessaloniki, Heraklion and Astakos Aitoloakarnanias port areas. The Free Zones (Control Type I) operate according to the European Union customs code. Goods of foreign origin may be brought into these zones without payment of customs duties or other taxes and remain free of all duties and taxes if subsequently transshipped or re-exported. Similarly, documents pertaining to the receipt, storage, or transfer of goods within the zones are free from stamp taxes. Transit goods may be held in the zones free of bond. The zones also may be used for re-packing, sorting, and re-labeling operations. Assembly and manufacture of goods are carried out on a small scale in the Thessaloniki Free Zone. Also, the area of the Free Zone (NA.VI.PE) in the Astakos Port is currently the only industrial area in Greece that has been categorized as Free Trade and Industrial Zone and also offers port facilities. The Industrial plots that are offered to the interested investors for business establishment are located in this area of Free Zone and without doubt, offer significant comparative advantages. The raw materials and components received do not required any customs procedure, so, the final products are exported to third countries (non EU) without any extraction process (exempt from VAT).

COMMUNITY CUSTOMS LEGISLATION ON FREE ZONES

The Community legislation on Free Zones is included in the Regulation 2913/92 (EEC) of the Council "Establishing the Community Customs Code" (L302/19-10-92), Articles 1-17, 58,166-181 and in the Regulation 2454/93 (EEC) of the Commission "Laying down provisions for implementing L.2913/92" (L253/11-10-93), Articles 799 to 813.

For the Regulation 2913/92 (EEC) please follow the link: http://eur- lex.europa.eu/LexUriServ/LexUriServ.do?uri=CONSLEG:1992R2913:20070101:EN:PDF For the Regulation 2454/93 please follow the link: http://eur- lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31993R2454:en:HTML

Enterprise Greece Head Office: 109 Vasillisis Sophias Avenue 115 21 Athens GREECE Offices in Northern Greece: 4 K. Kristali Str. 54630 Thessaloniki GREECE T: +30 210 3355700, F: +30 210 3242079, www.enterprisegreece.gov.gr

The Free Zones are part of the customs territory of the Community or inside it, separated from the rest of customs territory, where:

 The Non-EU goods are considered, concerning the import duties and the commercial policy import measures, as no existent in the customs territory of the community. This implies, that they have not entered free circulation or placed under another customs procedure or used or consumed under different conditions than those defined by the custom regulations.  In Free Zones, both non-EU and EU goods can be placed. The duration of the placement in E.Z is not subject to restrictions. However, for certain EU goods, which are under the common agricultural policy, some specific deadlines are set.

NATIONAL CUSTOMS LEGISLATION ON FREE ZONES

Determination of an area as ‘Free Zone’

According to the National Customs Legislation (Law 2960/01), the Minister of Economy & Finance with the agreement of the relevant ministries: a) Defines the Free Zones b) Establishes the conditions of operation and management, the duration and the control of the circulation of goods, in terms that the regulations of EU and international trade are ensured, and c) Specifies the responsibilities and the authority of the operator of the “Free Zone” area.

For the issuance of the above decision, a proposal must be submitted by the governing body or the operator to the General Customs Department & EFK of the Ministry of Economy and Finance, together with a feasibility study which should include:  The existing or the planned circulation of the non-EU goods through the proposed free zone,  The expected contribution of the Free Zone to the freight handling of the non-EU goods and the expected general economic benefits,  The guarantees for the proper administration and operation of the Free Zone.

The management and the exploitation of the "Free Zones" are assigned to legal entities.

The amendment of the Free Zone limits is made by a decision of the Minister of Economy and Finance, published in the Gazette.

Establishment of a company inside the ‘Free Zone’

For the establishment of a company inside the area of "Free Zone" an application must be made by the interested party to the General Customs Department & EFK.

The application should include:  The type of the business activity (manufacturing, trade, services),  The type of the goods and the employee’s requirements at the "Free Zone" area.  The plan for the accounting of the goods, which must at least contain the information specified by the article 806 of Reg (EC) 2454/93.  A copy of the contract between the "Free Zone" operator and the company to be installed. Alternatively, a confirmation of the above agreement for the establishment of the company at the 'Free Zone' area.  This documentation is not required when the operator of the 'Free Zone' and the company are the same person.

The General Customs Department & EFK of the Ministry of Economy and Finance, after the examination of the above data, approves the establishment of a company in the 'Free Zone' .The approval, also determines the accounting terms and the management of goods, in accordance with the provisions of Regulations 2913/92 and 2454/93.

The Non-EU goods during their stay in the 'Free Zone’, can be processed or re-exported under the customs control and according the conditions provided for by such schemes (Article 173 of Reg (EEC) 2913/92).

The ‘Free Zones’ that exist and operate in Greece are:

Address of Customs Free Zone Type Operator Area Authority

Free Zone of Control Piraeus Port Pier I & II : Ministry of Finance Piraeus Type I Authority S.A. & General Customs S.E.P. (COSCO) S.A. Free Zone΄s Surface: 1.125.340 m² Department & EFK Tel. +30 2106987507 E-mail: [email protected]

Free Zone of Control Thessaloniki Port Conventional cargo (total surface Ministry of Finance Thessaloniki Type I Authority S.A. 1,000,000 m²): General Customs Department & EFK Tel. Free Zone΄s Surface: Quays 15 -24 +30 2106987507 E-mail: [email protected] Warehouses (total surface 85,000 m2):

Free Zone΄s Surface: 21,500m² & a reefer warehouse of 4,000m²

Container Terminal :

Free Zone΄s Surface: 254,000 m² with an on-site storage capacity of 4,696 TEUs in ground slots

Free Zone for Control Heraklion Port Pier III & IV : Ministry of Finance Heraklion Type I Authority S.A. General Customs Free Zone΄s Surface: 64.580 m² Department & EFK Tel. +30 2106987507 E-mail: [email protected]

Free Zone of Control AKARPORT S.A. The total surface of the Maritime Ministry of Finance Platigiali Astakos Type I Industrial Area (NAVIPE) of the port General Customs Aitoloakarnanias operates as ‘Free Zone’ : 1.910 acres Department & EFK Tel. +30 2106987507 E-mail: [email protected]

Photos

I) Free Zone of Piraeus

Piraeus Prefecture Container Terminal_ Piraeus Port

View of Piraeus Port Conventional Cargo_ Piraeus Port

II) Free Zone of Thessaloniki

Thessaloniki Prefecture Container Terminal_ Thessaloniki Port

View of Thessaloniki Port Conventional Cargo_ Thessaloniki Port

III) Free Zone of Heraklion

Heraklion Prefecture Container Terminal_Heraklion Port

View of Heraklion Port Cruise Terminal_Heraklion Port

IV) Free Zone of Platigiali Astakos Aitoloakarnanias

Aitoloakarnania Prefecture NAVIPE_ Platigiali Astakos

View of Platigiali Astakos Port Container Terminal_Platigiali Astakos Port