|
Economic Zone "Brest"
The Republic of Belarus, Brest Region and city
of Brest welcomes everybody to the heart of Europe, to the East-West
crossroads, to a land with ancient history and a modern industrious people
surrounded by wonderful natural countryside.
 In
the West and East a process of change is gaining strength in people's minds
and actions. Countries, peoples and individuals are getting closer to each
other. The cultural and economic unity of Europe, having for so long been a
dream, is near. Brest Region and city are willing and eager to make their
contribution to this process. Brest is well ahead in the Republic's process
of reform. Its trade is the country's best. A privatisation model has been
developed for Brest with the assistance of the International Finance
Corporation. The Brest model is now approved and will be applied all over
the country. Brest and Brest Region possess a powerful industrial potential
and a qualified workforce. Being located at the Poland-Belarus border, Brest
has a number of unbeatable advantages in handling cargo from Western Europe
to the C.I.S. and back. So, it was not by chance that the government took
the decision to set up the first ever free economic zone in Brest. The FEZ
wants to cooperate on a mutually advantageous basis in an atmosphere of
trust.
Administration of the Brest FEZ
 The
Brest FEZ is a special territory featuring benefits and privileges for the
companies zone's operators (residents). But what the resident is, where it
can get needed information on the conditions in the zone, who and how
registers residents and many other questions will be answered in the Brest
FEZ Administration, a structure responsible for the economic policy in the
zone in the sphere of foreign and domestic investments. The Administration
office is located at:
23,
Kommunisticheskaya Str., Brest, Belarus
Off.
ph. (375 16) 222-1607, 220-4631
Fax
(375 16) 220-0883
fezBrest@mail.ru
www.fezbrest.com/,en,
Tasks and goals
 Management
and development of the Brest FEZ;
State registration of economic entities and
zone's operators (residents);
Publicity and marketing of the zone's benefits
and privileges;
Examination of investment projects and
proposals;
Coordination of the activities of scientific,
planning, industrial, construction ant other organizations to ensure the
Brest FEZ functioning;
Raising funds to develop the infrastructure and
improve the ecology;
Leasing land parcels (sites) and assistance in
selecting the available premises suitable for manufacturing.
Contacts
The Brest FEZ is a pilot project for Belarus and
it would have been rather difficult to create attractive conditions meeting
all the investors requirements without competent Western experts. That is
why since the creation of the Brest FEZ in 1996, "KPMG" (German consulting
company from Dusseldorf) has become supervisor and legal advisor of the
Brest FEZ in elaborating and streamlining the zone's legal framework. Our
cooperation will go on. But Administration's international contacts extend
far beyond the joint work of Belarusian and Western experts. Since 1996 the
FEZ has been a permanent participant to the Hannover Fair. It also takes
part in many other fairs, exhibitions and publicity events in many countries
in Western and Central Europe. Administration presents the Brest FEZ at many
international conferences and business meetings. Many friendly public
organizations and bodies help in marketing the Brest FEZ abroad. The
German-Belarusian House in Karlsruhe (Germany) is a good example. It is a
non-governmental organization with a purpose to develop economic, scientific
and cultural ties between Germany and Belarus.
Background and Goals of the Free Economic Zone
External trade and foreign investment are
critical factors in the transformation of the Belarusian economy. The
setting up of free economic zones has been adopted as an instrument for
attracting direct foreign investment. The zones offer an extremely
favourable investment regime. Belarus's first free economic zone is located
on the outskirts of Brest, on the border with Poland. It began to take final
shape in December 1996 under the protection of Presidential Decree N114 and
Government Ruling N559 (see Appendix). Brest had long been targeted as a
location for a FEZ. Other locations chosen in the time of the Soviet Union
were the ports of Nakhodka in the Far East and Kaliningrad, Russia's most
westerly seaport.
Brest was chosen for the following principal
reasons:
-
its strategic location at the crossing point
between Eastern and Western Europe on the Berlin - Warsaw - Minsk - Moscow
road and rail routes, allowing it to maximise Belarus's advantage of free
access to the Russian market;
-
the high level of development of its
transportation infrastructure;
-
the availability of a highly trained workforce
with good industrial and scientific experience;
-
the favourable climate and the cultural and
social amenities of Brest combine to create a uniquely attractive location
for business.
Advantages of investing in the Brest FEZ
The law governing the Zone guarantees
significant tax and other benefits to investors. Profit earned from
activities in the zone conducted by businesses registered in the zone is
exempt from corporate profit tax for a period of five years. For the
following five years, businesses that export a minimum of 70% of products
manufactured in the Zone will pay only 50% of Zone's profit tax. When
importing foreign and domestic goods into the zone the residents will be
exempt from customs duties. Goods and services produced by the zone
residents and exported from the zone territory are also exempt from customs
duties. Foreign employees are guaranteed unimpeded repatriation abroad of
profits obtained on the zone territory. No quota and licence regulations
will be applied to the goods and services produced on the zone territory
when they are exported out of the republic. The Brest FEZ has been set up
for a minimum of 50 years. Measures such as nationalization, requisition,
confiscation or actions similar in their effect are not allowed against
foreign investments on the zone territory. This is irrevocably guaranteed in
the legislation: Law on Foreign Investment in the Republic of Belarus,
December 05, 1997. See Chapter VII, Articles 34-37. The following tax
privilege regime is in force on the Zone territory. 6 taxes (out of a
possible 20 taxes in the republic) will be levied:
-
profit tax - 15% (normally 30%);
-
value-added tax - 10% (normally 20%);
-
employee income tax;
-
ecology tax and excises - in line with
relevant rates in the republic;
-
social protection fund and social insurance
contributions;
-
state duties and fees. Zone residents who
obtain profits from selling goods and services produced in their
zone-located enterprises will be exempt from profit tax within the first 5
years, starting from the time profit is first declared.
Development plan for Kozlovichi site
 The
Kozlovichi Site measuring 5,800 hectares lies north - west of Brest along
the Belarusian-Polish border. The " Kozlovichi - Kukuryki" truck border
checkpoint is just at the border. The R-84 highway crosses the site. The
Brest FEZ Servicing Centre is located not far from the checkpoint in the
premises of the "Business-Centre Company". The Servicing Centre includes a
customs clearance office, an affiliate branch of the republican Chamber of
Commerce and Trade, an affiliate branch of the republican BelBusinessBank
("BrestFEZInvest") as well as warehousing and cargo handling facilities. The
Centre is supposed to assist the zone's enterprises-resident in every way
meeting all their demands. Very close to it there is a well-developed
agricultural enterprise ready to cooperate with foreign investors. Thus, as
you see in the map, the Kozlovichi Site to be developed under the General
Brest FEZ Development Plan is very advantageously located close to Brest and
at the same time at a short distance from the border. What is not less
important the Site does not need much investment to develop a civil
engineering infrastructure as it is already there.
Development plan for Airport site
 The
priority development territory with a 330 ha area (Eastern part - 155 ha and
Western - 175 ha) is situated East from the City of Brest and joins directly
the Airport. The transportation network is well developed here. The E-30
(Paris - Berlin - Warsaw - Minsk - Moscow) route is near and the railroad
terminal is 1.5 km away. The construction of engineering, technical and
communication lines is being carried out at the expense of the Brest FEZ
Administration. Roads and water, gas, electricity lines are under
construction now. The Western Industrial Zone includes public and business
centre consisting of a residential zone, a hotel complex, banks, insurance
companies, office buildings and other public-use facilities.
FEZ's new sites
On December 12, 2001 by an Enactment of the
Council of Ministers of the republic of Belarus 1796 the premises of the OJS
Company "Brest Electromechanical Plant", those of the "Brest Radiotechnical
Plant" and the RUPE "Brest Bulb Producing Plant" as well as those of the
"Brest Engineering Plant" Company and the "Tsvetotron" Company have been
included into the territory of the Brest Free Economic Zone. The above
enterprises are located within the City of Brest (some of them in the
centre) and dispose of an important quantity of office and production areas
that could be leased.
List of documents required for registering a
company as a Brest FEZ resident:
-
Business plan (feasibility report) indicating
a volume of long-term investment not less than 400,000 USD.
-
Charter of the company.
-
In case the founder of the company is a
natural person - a notarised copy of the passport. If the founders are two
or more - the agreement signed by them and related to the creation of the
new company.
-
In case the founder is a legal person (a
company) - an extract from the Trade Register and an apostil.
-
Power of attorney issued to the person who
represents the company interests. Payments for registration (in Belarusian
roubles and USD as of 01.07.2001):
-
Notarising a charter and an agreement ~ 1500/1
USD per page.
-
Translating of the power of attorney and its
notarising ~20-30 USD.
-
For registering as a Brest FEZ resident:
375,000 roubles or 268 USD (50 minimum wages).
-
For participation in the competition
procedure: 225,000 roubles or-161 USD (30 minimum wages).
-
For state registration: 60 Euros or 60 USD.
General
 What
is the Brest FEZ like today? These are 83 enterprises-resident, including 64
with foreign capital. The companies have declared investments totalling to
about 120 mln dollars (without their charter capitals). The Brest FEZ
companies employ 4611 people. They manufacture furniture, foods, electrical
engineering articles, light industry items, paints and lacquers. There are
companies that offer various services for example in construction and
transportation. Most of the new businesses progress rapidly from month to
month, they increase export and create new jobs. Should you want to
establish contact with any of the Brest FEZ companies-resident
Administration is ready to help and answer any question.
|
