Index cards by country

BHUTAN

SPECIAL ECONOMIC ZONES

Index cards realized by the University of Reims, France Conception: F. Bost Data collected by F. Bost and D. Messaoudi Map and layout: S. Piantoni WFZO Index cards -

Year of promulgation of the irst text Oicial Terms for Free Zones of law concerning the Free Zones Special Economic Zones 2010

Possibility to be established as Exact number of Free Zones Free Points 3 SEZs under installation No

TABLE OF CONTENTS

General information ...... 4 List of Special Economic Zone in project...... 5 Contacts ...... 6 Free Zones Web sites selection ...... 6

2 WFZO Index cards - Bhutan

Kangmar Gudui CHINA Comai Luozha •

Gala Gyeru

Cona Düna Gasa

Lachung Pagri Lhuntse Punakha Jakar Xarsingma Phobji Trongsa • Paro Ha Drametse Zhemgang Khaling

Tsimasham Daga Damphu

01 02 Mal Bazaar Jaigaon Gelephu 03 Samtse

Birpara Samdrup Jongkhar

Mainaguri Goreswar Alipur Duar INDIA Sarupeta Jalpaiguri Mangaldoi Kokrajhar

BANGLADESH FREE ZONES IN BHUTAN 01 25 km International borders Elevations (meters) Cities 0 200 500 1000 Free Zones

01 - Dhamdum SEZ 02 - Jigmeling SEZ 03 - Motanga SEZ

© Sébastien Piantoni - Conception: François Bost EA 2076 Habiter - University of Reims - 2017 Map Projection: WGS 1984

3 WFZO Index cards - Bhutan

GENERAL INFORMATION Oicial deinition “A SEZ is an area where any goods imported are regarded, insofar as import duty and taxes are concerned, as being outside the customs territory. The enterprises in the SEZ shall be export oriented. Sale of products/services in the domestic tarif area by enterprises established in SEZ shall be subject to payment of applicable taxes and duties. SEZs can an Export Processing Zone, Free Trade Zone, IT Park, Technology Park, Education Park, Agricultural Free Zone, Tourism Development Zone etc., subject, however, to the potential and commitment to fulil the speciic requirements prescribed for the type of SEZ”. http://www.gnhc.gov.bt/wp-content/uploads/2011/05/Business_Infrastructure_Policy-_2014_1.pdf

3 Special Economic Zones shall be created to encourage manufacturing and exports. They are actually under installa- tion. The dates of opening to the investors are not yet known.

Number of free 3 actually under installation zones

Main sectors of The special economic zone at Jigmeling will have diferent kinds of industries and re- activity creational facilities, among others.

Number of active companies in Free Zones

Total job numbers The special economic zone at Jigmeling is expected to create around 25,000 jobs accor- ding to the Chief Executive oicer of DHI Infra, Dorji Namgay. http://www.bbs.bt/news/?p=33318

Distribution of investors

Exports and sales

Free zones contri- bution to the na- tional economy

Corporate Tax and Additional Fiscal Incentives for Developers: Incentives • Exemption from customs duty and sales tax on imports of capital goods, raw mate- rials, consumables, spares, etc. used in the production processes of the business; • Exemption from excise duty and sales tax on procurement of capital goods, raw materials, consumables, spares etc. from domestic market used in the production processes of the business; • Corporate income tax holiday for a Period up to 10 years; • Exemption from foreign exchange controls on payments for: a) proits, dividends, loans, royalties, fees and charges relating to activities regis- tered in the zones; b) raw materials, intermediate goods, tools and spares, supplies, construction equipment and building materials; and, c) capital transactions.

Additional Fiscal Incentives for Enterprises in Special Economic Zones: • Exemption from customs duty and sales tax on imports of capital goods, raw mate- rials, consumables, spares, etc. used in the production processes of the business; • Exemption from excise duty and sales tax on procurement of capital goods, raw • materials, consumables, spares etc. from domestic market used in the • production processes of the business; • Corporate income tax holiday for a period up to 10 years;

4 WFZO Index cards - Bhutan

• Exemption from foreign exchange controls on payments for: a) proits, dividends, loans, royalties, fees and charges relating to activities regis- tered in the zones; b) raw materials, intermediate goods, tools and spares, supplies, construction equipment and building materials; and, c) capital transactions

Non-iscal Incentives for the Developers: • One operation license issued by regulatory agency to set up operations of Business Infrastructure ; • Fast track project approval and licensing or rejection thereof within 45 days; • Liberalized foreign exchange regime for easy repatriation of capital & proits, access to foreign currency accounts, domestic and external • borrowing; • On site customs documentation and inspection by Customs. Resident Customs oice for on site customs documentation and clearance in the SEZs; • Investment conditions by foreigners as per FDI policy, 2010; • One Stop Facilitation service for facilitation and aftercare

http://www.gnhc.gov.bt/wp-content/uploads/2011/05/Business_Infrastructure_Poli- cy-_2014_1.pdf

Free Zone law Special Economic Zones Policy By 2010/11.

LIST OF SPECIAL ECONOMIC ZONE IN PROJECT 1 - Dhamdum SEZ Located at a distance of about 2 kilometers from the Samtse Township adjoining the Location Dhamdum riverbed.

Surface Area 350 acres.

Ministry of Finance Tashichhodzong - P.O Box117 Contacts Tel.: +975-2-322223 / 322514 / 322271 / 327763 / 322285 Fax: +975-2-323154

Observations

2 - Jigmeling SEZ Location Located 17 kms from Gelephu along the Gelephu-Sarpang highway

733 acres. About 40 acres of private land belonging to 28 households were acquired for the project Surface Area apart from the government land. http://www.bbs.bt/news/?p=33318

Ministry of Finance Tashichhodzong - P.O Box117 Contacts Tel.: +975-2-322223 / 322514 / 322271 / 327763 / 322285 Fax: +975-2-323154

Observations The Special economic zone will be the biggest special economic zone in the country.

5 WFZO Index cards - Bhutan

3 - Motanga SEZ Located at about 7 Km to the east of Samdrup Jongkhar town and falls under Dewa- Location thang Gewog.

Surface Area 145.52 acres.

Ministry of Finance Tashichhodzong - P.O Box117 Contacts Tel.: +975-2-322223 / 322514 / 322271 / 327763 / 322285 Fax: +975-2-323154

Observations

CONTACTS Ministry of Finance Tashichhodzong P.O Box117 Tel.: +975-2-322223 / 322514 / 322271 / 327763 / 322285 Fax: +975-2-323154

Druk Holding and Investments Limited Thimphu Bhutan P.O. Box #: 1127 Email: [email protected] Tel.: 00975-02-336257 / 336258 Fax: 00975-02-336259

FREE ZONES WEB SITES SELECTION • http://www.gnhc.gov.bt/wp-content/uploads/2011/05/Business_Infrastructure_Policy-_2014_1.pdf • http://rtm.gnhc.gov.bt/wp-content/uploads/2013/10/EDP.pdf • http://www.dhiinfra.bt/?page_id=2404 • http://www.mof.gov.bt/ • http://www.gnhc.gov.bt/wp-content/uploads/2012/04/EDP.pdf • http://thebhutanese.bt/bhutans-biggest-industrial-sez-opens-for-bidders/

6