FREE TRADE ZONE ACT 1971

The Minister may prescribe different dates for the coming into force of different provisions of this Act.

The Minister may appoint any statutory body established or constituted by or under a federal law or any company or any department of the Government of the Federation or with the consent of the State concerned, any statutory body established or constituted by or under a State law or any department of the Government of a State as the Authority to administer, maintain and operate any free trade zone which has been so declared under the provisions of subsection (1).

At least three of the persons appointed under subsection (1) shall be persons with wide experience in commerce and trade.

Every appointment made under this section shall be published in the Gazette.

Goods in a free trade zone may—

Goods, except such as are prescribed under the provisions of subsection (4) of this section, which have been brought into a free trade zone from any part of the customs territory shall be deemed to be exported for the purpose of drawback under the provisions of the Customs Act, 1967.

The provisions of this section shall not apply to such goods as may be declared from time to time by the Minister, by notification in the Gazette.

The Authority shall consult the Regional Comptroller before authorising any retail trade to be conducted within a free trade zone.

The Minister may from time to time by notification in the Gazette add to, alter or amend the First Schedule.

The Minister may make regulations governing manufacture within a free trade zone.

The Minister may give to the Authority such directions as he may consider necessary for the proper functioning of a free trade zone or for the purpose of protecting revenue; and the Authority shall comply with any such directions.

The Authority shall provide adequate facilities for officers of customs whose duties may require their presence within or at the perimeter of the free trade zone; and the Authority shall permit customs offices to be established in a free trade zone—

The Authority shall provide adequate enclosures to segregate the free trade zone from the customs territory for the protection of revenue together with suitable provisions for the movement of persons, conveyances, vessels and goods into and from the free trade zone.

The Authority may, after consulting the Regional Comptroller, lease to or allow any person to take, hold or enjoy movable and immovable property of every description in a free trade zone upon such terms and conditions and for such period as the Authority may determine.

Any person aggrieved by such an order may appeal to the Minister within fourteen days of the service of such order; and the decisions of the Minister shall be final and shall not be questioned in any Court.

An order by the Authority as to the removal of any goods, which in the opinion of the Authority are dangerous or prejudicial to public safety, shall, notwithstanding an appeal to the Minister, be complied with immediately; and an order as to the discontinuance of operations shall not take effect, if an appeal has been made to the Minister, until the determination of the appeal in favour of the Authority.

The Authority shall present to the Minister annually and at such other times as the Minister may prescribe, reports containing a full statement of all operations, receipts and expenditure and such other information as the Minister may require.

The accounts of the Authority, together with its Annual Report, shall be laid on the table of each House of Parliament.

to enter such shop, warehouse or other building or place and there to search for and seize any goods in respect of which there is reason to believe that the offence aforesaid has been committed, and any books or documents which may reasonably be believed to have a bearing on the case;

to arrest any person or persons being in such shop, warehouse, building or place, in possession of any goods aforesaid found, or whom such officer may reasonably suspect to have concealed or deposited such goods;

to break open if necessary, any door of such shop, warehouse, building or place and enter thereinto;

to forcibly enter if necessary, such place and every part thereof;

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to remove by force any obstruction to such entry, search, seizure and removal as he is empowered to effect; and

to detain any person found in such place until such place has been searched.

The person in control or in charge of any vehicle stopped for examination under the provisions of subsection (1) shall if so requested by the officer of customs open all parts of the vehicle for examination by such officer and take all measures necessary to enable such examination as such officer considers necessary to be made.

any person requesting that his person be searched in the presence of a senior officer of customs shall not be searched except in the presence of and under the supervision of such officer, but such person may be detained until the arrival of such officer or be taken into any customs office or customs station or police station where such officer may be found;

the goods and baggage of any person who requests to be present when they are searched and so presents himself within a reasonable time shall not be searched except in his presence; and

no female shall be searched except by a female.

All such goods and such receptacles, baggages, vehicles, vessels or aircraft shall, as soon as is practicable, be delivered into the care of a proper officer of customs whose duty it is to receive the same.

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Whenever any goods, receptacle, baggage, vehicles, vessels or aircraft are seized under this Act, the officer effecting the seizure shall forthwith give to the owner thereof, if known, notice in writing of such seizure and the reasons therefor, either by delivering such notice to him personally or by post at his place of abode, if known:

Provided that such notice shall not be required to be given where such seizure is made on the person, or in the presence of, the offender or the owner or his agents, and, in the case of a vessel or an aircraft in the presence of the master or pilot, as the case may be.

The provisions of this section relating to the seizure of goods shall apply to all the contents of any package or receptacle in which the same are found and to any article used to conceal the same.

The provisions of this of any vessel or aircraft shall section relating to the seizure apply also to the tackle, equipvessels or aircraft.

The provisions of this section relating to the seizure of conveyances shall apply to all equipments thereof and to any animal by which the same is drawn.

Any goods of a perishable nature seized under the provisions of this section may be sold forthwith and the proceeds of sale held to abide the result of any prosecution or claim.

Any goods which are of a dangerous character and which cannot be removed without undue expense may be destroyed on the instructions of a senior officer of customs.

any person found committing or attempting to commit, or employing or aiding any person to commit, or abetting the commission of an offence against this Act or any regulations made thereunder;

any person whom he may reasonably suspect to have in his possession any goods liable to seizure under the Customs Act, 1967, this Act or any regulations made thereunder; or

any person against whom a reasonable suspicion exists that he has committed an offence against the Customs Act, 1967, this Act or any regulations made thereunder, and may search or cause to be searched, any person so arrested:

Provided that no female shall be searched except by a female.

No officer of customs shall detain in custody a person arrested without a warrant for a longer period than under the circumstances of the case is reasonable; and such period shall not exceed twenty-four hours exclusive of the time necessary for the journey from the place of arrest to the Magistrate's Court.

No person who has been arrested by an officer of customs shall be released except on his own bond or on bail or under a special order in writing by a Magistrate or a senior officer of customs.

section 6 may be conducted by a senior officer of customs or any officer of customs specially authorised in writing in that behalf by the Regional Comptroller; and

any other provision of this Act or any regulations made thereunder may be conducted by an officer of the Authority, specially or generally authorised in writing in that behalf by the Minister.

Where any person would be liable under this Act to any punishment, penalty or forfeiture for any act, omission, neglect or default he shall be liable to the same punishment, penalty or forfeiture for every such act, omission, neglect or default of any clerk, servant or agent, or of the clerk or servant of such agent provided that such act, omission, neglect or default was committed by such clerk or servant in the course of his employment or by such agent when acting on behalf of such person or by the clerk or servant of such agent when acting in the course of his employment in such circumstances that had such act, omission, neglect or default been committed by the agent his principal would have been liable under this section.

On payment of such sum of money the person reasonably suspected of having committed an offence if in custody shall be discharged, and any properties seized shall be released and no further proceedings shall be taken against such persons or property, unless the property consists of goods the import of which into the Federation is absolutely or conditionally prohibited under any written law, in which case such goods shall be forfeited.

All things forfeited shall be delivered to a proper officer of customs and shall be disposed of in accordance with the directions of the Regional Comptroller.

Any person asserting that he is the owner of such goods and that they are not liable to forfeiture may personally or by his agent authorised in writing give written notice to a senior officer of customs that he claims the same.

On receipt of such notice the senior officer of customs shall refer the claim to the Regional Comptroller who may direct that such goods be released or may direct such senior officer of customs, by information in the prescribed form, to refer the matter to the President of a Sessions Court for his decision.

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The President of such Court shall issue a summons requiring the person asserting that he is the owner of the goods and the person from whom they were seized to appear before him, and upon their appearance or default to appear, due service of such summons being proved, the President shall proceed to the examination of the matter and on proof that an offence against this Act has been committed and that such goods were the subject matter, or were used in the commission, of such offence shall order the same to be forfeited, or may in the absence of such proof order their release.

No payment shall be made for any samples taken but the proper officer of customs shall give a receipt for any samples so taken.