Bill prepared to manage the Special Economic Zone

Preamble
Since legal framework is deemed necessary to establish Special Economic Zones to carry forward the nations industrialization process and support the pace of social and economic development process, The Constituent Assembly has promulgated this Act according to Interim constitution of Nepal, 2063 (2006), Article 83, sub-article (1).

Chapter-1 Preliminary
1. Short Title and Commencement: (1) This Act is named the "Special Economic Zone Act, 2006 (2064)". (2) This Act shall come into force immediately.

2. Definition: Unless the subject or context otherwise requires, in the Act -

a)

"Special Economic Zone" means the Special Economic Zone as designated under Section (3).

b) "Industry" means an industry included in the list as prescribed in Section (5).

c)

"Infrastructure" means the infrastructure required for the development of Special Economic Zone and the word also includes pharmacy, medical unit, post office, banking service, baby care center, school and cafeteria to be built in such Zone.

d) "Investors" means any person, firm or company investing in industry and the word also refers the foreign government or International Institutions.

e)

"License" means the license to be issued under Section (7) for the establishment of industries in the Special Economic Zone.

f)

"License holder" means an investor licensed according to Section (7).

g) "Authority" means the Special Economic Zone Authority established according to

Section (13).

h) Committee means operating committee appointed under Section (16). i)

Chairperson means the Chairperson of the Committee. j) Member refers to the member of the Committee.

k) "Prescribed" or as prescribed" means prescribed or as prescribed in the Rules

framed under this Act.

Chapter-2 Provision relating to the establishment of Special Economic Zone

3. Can Determine Special Economic Zone: (1) Nepal government can prescribe any area of Nepal as Special Economic Zone, after publishing the notice in the Gazette, following recommendation of the Authority. (2) The Special Economic Zone as prescribed under sub-section (1) can have export processing area, special business area, tourism or entertainment area or any other area as prescribed by the Nepal government. Clarification: For the purpose of this section:

(A) (B)

Export Processing Area means the area within the Special Economic

Zone developed to establish export oriented industry. Special Business Area means the area within the Special Economic

Zone developed to collect goods for export, through import or collection within the country, its storage, classification, packaging and assembling.

(C)

Tourism or Entertainment Area means the area within the Special

Economic Zone developed to establish industry related to tourism and entertainment. 4. Proposing for Establishment of Special Economic Zone: (1) According to section 3, if the Authority finds it appropriate for establishing Special Economic Zone in any part of Nepal after carrying out necessary survey, then it will submit the proposal before Nepal Government. Clarification: For the purpose of this Section, Survey refers to survey carried out to confirm the appropriate location for establishing the Special Economic Zone and the word also refers to the feasibility study and engineering design of the Special Economic Zone. (2) While carrying out survey under Sub Section 1, the Authority in addition to other things will also consider the access to road, telephone, electricity and water supply facilities, sufficiency of the land, availability of workers and raw materials. 5. Preparing List of the Industries: (1) The Authority shall prepare the list of industries that may be established in the Special Economic Zone and make it public. (2) While preparing list according to sub section (1), productive, tourism and entertainment, Information Technology. Agriculture, Mines and Forest Products industry appropriate from environmental perspective, economically feasible, and export oriented in business sense, will be included in such list. (3) The Authority should update such list periodically.

6. Can carry out through Private Sector: (1) The Nepal Government can ask the private sector to carry out development of infrastructure of any Special Economic Zone on the recommendation from the Authority. (2) According to sub section (1), other provisions related to development of infrastructure, management and operation shall be as prescribed. (3 Whatever is mentioned in sub section (1) and (2), services provided by government agencies cannot be carried out through private sector. Clarification: For the provision of this section, services provided by governmental agencies means the services of Industry Registration, revenue collection or providing discount, providing Visa, providing certificate of origin for any kind of goods or services, etc.

Chapter 3 Provisions Related to License

7. License related provisions: (1) An investor interested to establish industry by investing prescribed capital in the Special Economic Zone shall have to file an application before the Authority in the format as prescribed. (2) While examining the application as referred to in sub-section (1), the Authority, if deems appropriate, shall issue license to the applicant within thirty days by charging the prescribed fees.

(3) Whatever is written in sub section (1), if any investor wants to establish any industry not included in the list prescribed in section 5 but such industry is appropriate from environmental perspective, economically feasible, and export oriented, then he can file application before the Authority with mentioning those points. (4) While examining the application as referred to in sub-section (3), the Authority, if it deems appropriate to issue license after carrying out preliminary environmental test or evaluating environmental effect, shall issue license to the applicant within thirty days of carrying out such preliminary environmental test or evaluating environmental effect by charging the prescribed fees. (5) If more than one investor apply as prescribed in sub section (1) or (3) for establishment of more than one industry of similar nature is not feasible in the Special Economic Zone, the Authority will issue license to that investor who proposes bigger investment, higher exports, capacity of providing more employment and who will make maximum use of Nepali raw materials. (6) If it is not possible to issue license while examining the application under sub section (2) or (4), then the Authority should inform the applicant citing reasons for not issuing license within seven days of such decision made. (7) Any applicant not satisfied with the decision of the Authority according to sub section (6), then the applicant can make an appeal to Ministry of Industry, Commerce and Supplies within 35 days of receiving such information. The decision of the Ministry shall be final in this regard. (8) If the Authority issues license as prescribed in sub section (4) for establishing any type of industry , then such industry shall be considered to be included in the list as prescribed in section (5).

(9) Whatever is written elsewhere in this section, the investors that have taken license or operating any industry, according to the prevailing law when this Act comes into force, such investors cannot transfer to Special Economic Zone and operate industry on the basis of same license, and such investors cannot transfer or use the machinery or any other equipment already used to the Special Economic Zone. (10) Whatever is written in the sub-section (9), there would be no obstacles in transfer of the special type of industry, if the Nepal government publishes a notice in the gazette and prescribes such industry. 8. Need to have Agreement: The License holder after obtaining license should sign an agreement with the Authority for establishment and operation of the Industry on the following points: a) b) c) d) e) Amount to be paid for lease or rent for use of building or land or services (Electricity, Water etc.) necessary for the Industry, Industry establishment and operation Date, Quantity of exports of the Industry Production, In case of foreign investment, the issue of technology transfer Other necessary points.

9. Tenure of the License & Renewal: (1) The license issued for the industry shall remain valid for a period not exceeding thirty years depending on the nature of the industry. (2) The license holder wanting to renew the license should file an application for license renewal before the Authority thirty five days before the license expiry.

(3) If any application is filed as prescribed in sub section (2), then the Authority shall
renew the license for a period of five years by charging fees as prescribed.

(4) Other provisions related to renew of license shall be as prescribed. 10. Responsibility of the License Holder: It is the responsibility of the license holder to abide by the agreement carried out with the Authority, this Act or rules framed under this Act 11. Need to Export: (1) The license holder will have to completely export the goods and services produced. (2) Whatever is written in sub section (1), the license holder can sell up to 25 percent of the produced goods or services as prescribed in the domestic market. (3) If any license holder is to sell any goods or services produced as prescribed in sub section (2) in the domestic market, then such information should be given to the Authority stating the prescribed points. (4) Whatever is written in sub section (1) and (2), in the case of tourism and entertainment related industries, it shall be as prescribed. 12. Canceling the License:

(1) If the license holder does not renew the license within the prescribed time under sub section (2) of section (9), then such license shall be cancelled. (2) The Authority may cancel the license in any of the following circumstances:(a) (b) If the industry as referred to in the agreement is not established and operated If responsibility according to section (10) is not fulfilled, within such period as prescribed,

(c) (d) (e) showing false details.

If more quantity of its production is sold in the domestic If the industry misuses the facilities received. If it is proved that the industry has received facilities by

market than that prescribed in section (11).

(3) Before canceling the license as referred to in sub-section (2), concerned Licensee shall be given a reasonable opportunity to defend himself/herself. (4) If the license is cancelled under Sub-section (1) or 2), the agreement concluded with the License holder shall be deemed to be ipso facto terminated. (5) If the license is cancelled under the sub Section (1) or (2), the License holder shall not be entitled to make a claim for any kind of compensation for investment made in the Special Economic Zone and he will not be entitled to any discounts and benefits from the day of cancellation. (6) If the license is cancelled according to the sub Section (1) or (2), the License holder shall have to manage its fixed property within one year from the date of such cancellation. (7) If the License holder fails to manage its fixed property within the period as referred to in Sub-section (6), such property shall ipso facto become that of the Nepal Government. (8) The Authority, before canceling the license under sub section (2), can carry out necessary investigation by itself or through any authorized person. (9) If the License holder is not satisfied with the cancellation of license according to subsection (2), the license holder can appeal before the concerned Appellate Court within thirty five days of cancellation of license.

Chapter 4 Establishment of the Authority and Provisions related to Work, Duty and Rights
13. Establishment of Authority: (1) Special Economic Zone Authority has been established for the construction and to take care of infrastructure in the special economic zone, to monitor and regulate the industries and to provide services through one window system. (2) The main office of the Authority will be located in Kathmandu and the authority for the operation and management of the special economic zone can open branch offices as required. 14. Authority to remain as an autonomous body: (1) Authority will be an accountable, integrated, autonomous and organized institution. (2) The Authority, to carry out its work, will have its own separate seal. (3) The Authority, like an individual, can obtain, consume and sell movable and fixed assets or manage through any other way. (4) The Authority, like an individual, can file complains, and similarly complaints can be lodged against the Authority. (5) The Authority, like an individual, can make agreement and use authority according to agreement and carry out responsibility.

15. Work, Duty and Rights of the Authority: Besides the work, duty and rights of the Authority written elsewhere in this Act, the Authority will have the following work, duty and rights: (a) Recommending Nepal Government in the policy regarding establishment, development and operation of the Special Economic Zone, (b) Formulating necessary standards for the establishment and infrastructure development of Special Economic Zone, (c) Determining standards for lease or rent amount, fee or charges on behalf of the land, building, service or facilities available to Industries by the Authority. (d) Recommending for service-facility or tax discount for the industries according to this act. (f) Renting out land, buildings to the industries. (g) Taking action against industries established in the Special economic zone if they are found working against the rules and Acts during the course of periodic inspection (h) Managing security provisions in the Special Economic Zone. (i) Managing services of Bank, Post Office, Health Post, Entertainment Places etc. as necessary in the Special Economic Zone. (j) Allowing investors to import necessary machinery, tools, equipments, vehicles, raw materials, packaging tools etc on the basis of Investment Proposal Approval.

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(k) Providing the industry certificate of export, import, approval and certificate of origin as required. (m) Carrying out other works for development and promotion of Special Economic Zone and for the industries in such zones.

Chapter 5 Formation of Managing Committee and other Provisions

16. Formation of the Committee: (1) Under this act, for the execution of all works, the Authority shall form one managing committee. (2) The following members will be there in the Managing Committee under sub section 1 (a) Person appointed by Nepal Government, selected from those having obtained at least a post graduate degree in any of the disciplines like Management, Economics, engineering or law or have at least 10 years of experience in Industry, Commerce or Business Management - Chairperson b) Representative (Gazetted First Class) Ministry of Industry, Commerce and Supply - Member c) Representative (Gazetted First Class), Ministry of Commerce and Supplies - Member d) Representative (Gazetted First Class), Ministry of Labour and Transport Management - Member e) Director General, Department of Industry - Member f) President of the Federation of Nepalese Chamber of Commerce and Industries or any member appointed by the President - Member g) Three people, appointed by Nepal Government, including at least a woman, having expertise knowledge in the Industry, Commerce or Tourism - Member

(3) The term of the Chairperson and members appointed under part (a) and (g) of sub section (1) will be of four years. (4) Chairperson will be the Full Time Administrative Officer.

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(5) Salary, Facility, other terms and work, duty and rights will be as prescribed. 17. Committees meeting and decision: (1) The meeting of the Committee will be held as required. (2) The meeting of the Committee will be held at a date, time and venue prescribed by the Chairperson, (3) The quorum for the meeting will be deemed complete if there is presence of more than 50 percent of members, (4) The meeting of the committee will be chaired by the Chairperson and in the absence of the chairperson it will be chaired by any member selected by themselves. (5) In the Committee's meeting, the decision of the majority hold; In case there are equal votes on both sides, the vote of the person chairing the meeting will be decisive. (6) The senior employee of Committee will work as a secretary of committee. (7) The Committee can invite any concerned expert or official as an invitee (8) Other working procedures of the committee meetings will be as determined by the Committee itself. 18) Allowances and other facilities of the member: The salary, allowance and other facilities of the member and other invitee experts or officials shall be as prescribed. 19) Provision related to Employees:

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(1) For the operation of the committee, there shall be necessary number of employees. (2) The appointment, salary, facilities and other service terms of the committee employees will be as prescribed. (3) The Nepal Government shall provide necessary employees for the committee until the time employees are recruited under sub section (1). (4) Whatever is written in sub section (1), (2) and (3), the employees working at Special Economic Zone Project, at the time of issuing this act, shall be transformed into employees of Special Economic Zone Authority on the basis as prescribed.

Chapter-6 Provision related to Privileges Received by the Industries in the Special Economic Zone
20. Special Treatment: The business transaction carried out in the Special Economic Zone, the tariff, fee and tax on goods or services produced in the Special Economic Zone shall be given special treatment similar to that of outside scope of taxes. 21. No Nationalization shall be made: No industry established and operated in the Special Economic Zone shall be nationalized 22. Discount on the lease or rent of land or Building : The land or building rented for the Industry shall be entitled to 50 percent, 40 percent and 25 percent discount in the first, second and third year respectively.

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23. Exemption from Income Tax: (1) Industry established in the Special Economic Zone shall be exempted fully from the income tax chargeable under the prevailing laws for 5 years from the date of commencement of commercial transaction or production and fifty percent for next five years. In case the industry uses 60 percent of domestic raw materials, the fifty percent discount will hold for 10 years, after first 5 years of total waiver. (2) Notwithstanding anything contained in sub section (1), the industry established in the Special Economic Zone in the mountainous or hilly districts prescribed by the Nepal Government will be entitled to complete income tax holiday for 10 years from the date of commencement of commercial transaction and exempted fifty percent thereafter, for another 10 years. (3) Whatever is written in the existing law, the Industries shall receive following income tax discounts as follows: (a) There will be no income tax in the dividend amount distributed by the industry for 5 years from the date of commencement of commercial transaction. (b) After the completion of the duration according to part (a), the industry shall be entitled to fifty percent income tax discount for three years there after. (c) There will be fifty percent income tax on the income earned by the foreign investors on foreign technology and management service fees and royalty. (4) Whatever is written elsewhere in this section, the industry transferred to the Special Economic Zone under section 7, subsection 10, will not get the discount on income tax according to this section. 24. No Value Added Tax:

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(1) The License Holder shall be entitled to full exemption from Value Added Tax chargeable while importing machinery, equipment, spare parts of machine, raw materials necessary for the industry and up to three vehicles for transporting goods for one industry. (2) No Value Added Tax shall be levied on the business of goods or services transaction between the industries within the Special Economic Zone. (3) No Value Added Tax shall be levied on such good or services where the License holder purchases goods or services necessary for the industry from the internal market. 25. No Excise duty: No excise duty shall be levied on the goods to be produced by

the industry. 26. Exemption from Customs Duty:

(1) The License holder shall be entitled to exemption from customs duty for importing the goods for industry as follows: (a) On the raw materials, assisting raw materials, packaging materials and materials used for production on the basis of bank guarantee, (b) Necessary plant, machinery equipment, instruments, tools and spare parts for industry and up to three vehicles on the basis of size and nature of industry. (2) The license holder can take the tradable goods in domestic market, out of the Special Economic Zone after paying Customs Duty Charge and other Tax on them under section 11, sub section (2)

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(3) If any importer sells any goods to the industry affiliated to Special Economic Zone, the custom duty and tax of such goods should be returned to the importer by the customs office. (4) The license holder should follow the process according to notice published by Nepal Government on the Gazette while transferring the ownership of exported goods with custom exemption. 27. Exemption from Local tax: No local tax of any kind shall be levied on goods or

service produced by the Industry, and while importing machinery equipment, machinery spare-parts, raw materials, and other materials necessary for establishment of the industry, and up to three vehicles for transporting goods for one industry . 28. Facilities equivalent to Export: If any firm, company or industry established

under prevailing laws sells raw materials or any products to the industry established in the Special Economic Zone, such firm, company or industry shall be entitled to enjoy the facilities equivalent to exporting the items. 29. The foreign investment May Be Repatriated:

(1) The foreign investor investing foreign currency in the Special Economic Zone shall be entitled to repatriate the following amount out side Nepal:(a) (b) (c) Amount received from selling share of the industry having foreign investment in Amount received as profit or dividend for foreign investment, Amount received as payment of principal amount of the foreign loan and interest

full or part,

thereon.

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2) If the License holder investing under sub section (1), has mentioned in the agreement under section 8 to repatriate money in certain currency, then he/she shall be entitled to repatriate as stated. 30. (1) Account May Be Opened and Transaction Carried out in Foreign Currency: The License holder, on recommendation of the Authority, can open account in

foreign currency. (2) The License holder establishing the industry in the Special Economic Zone shall

be entitled to carry out transaction in foreign currency with respect to its industry. 31. Provision on Visa:

(1) Government of Nepal shall issue non-tourist visa up to six months to the foreign nationals who visit Nepal to carry out study and research with a view to invest in the industry. (2) Government of Nepal may issue business visa to the foreign investor or family dependant on such investor or authorized representative or the family dependent on such authorized representative to reside in Nepal for a period that the foreign investment remains continued in the industry. However, Government of Nepal shall provide residential visa to the foreign investor or his/her dependant family investing once at least 10 million US dollars or convertible foreign currency equivalent to the same for a period that such investment remains continued.

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(3)

Government of Nepal shall, on recommendation of the Authority, issue non-

tourist visa to the foreign employee or workers who arrive to work in the industry under Section 35. 32. Other Facilities:

(1) The following additional facilities shall be made available to the industry established in the Special Economic Zone. (a) Agreement, (b) (c) Sub-contracting within Industries Deducting depreciation in an accelerated rate The use of Bonded ware house as stated in the

2) The industry shall be entitled to other facilities, by recommendation of Authority, as specified by the Government of Nepal from time to time. 33. (1) Guarantee of Facilities and Concessions: No provision shall be made in a manner that the facilities that are being enjoyed

or may be enjoyed by the industry established in the Special Economic Zone according to this Chapter at establishment of such industry shall be cut off or may have any kind of adverse effect thereon. (2) If there is any provision in this Act or other prevailing laws contrary to Sub-

section (1), then such provisions will not hold for such industries to the extent that may have adverse effect thereon. 34. No Exemption and Concessions Shall Be Received:

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(1) Whatever is written elsewhere in this chapter, if any industry established in the Special Economic Zone other than tourism or entertainment industry fails to export products according to Section (11) in any fiscal year, such industry shall not receive exemption and privileges concessions to tax to be received pursuant to this Act for the said fiscal year. (2) The quantity produced by any industry in any fiscal year for the purpose of Subsection (1) shall be determined as prescribed on the basis of the production capacity of such industry and the quantity of raw materials used by such industry. (3) The Authority shall maintain updated records to determine the quantity produced according to Sub-section (2) and make arrangement of monitoring the same.

Chapter-7 Provisions related to workers and employees

35. Recruitment of workers or employees: (1) The license holder should fulfill the required workers or employees for the industries from among the Nepali Citizens. (2) While fulfilling the required number of workers or employees for the industries under sub section (1), it can do so by publicly advertising and any appropriate manner it considers. (3) While carrying out public advertisement under sub section (2), if Nepali worker or employee is not available for particular expertise, then the license holder should state

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out its proof and apply for the permission before the Authority for recruiting Non Nepali Citizen as worker or employee. 4) While examining the application filed under sub section (3), if it is seen that the stated worker or employee is not available from the Nepali Citizen, then the Authority can approve the appointment of special skilled technical worker or employee for a maximum of seven years and in the case of other worker or employee for a maximum of five years. But, in the case of workers and employees related to Management Level and Modern Technology (state of art), the Authority can approve to employ them for a longer period. Clarification: For the purpose of this provision, Management Level refers to that person responsible to take final decision with regards to any activity in any industry and it also refers to person appointed as chief of any unit of the industry who is the final authority to use responsibility or rights in the related activities. (5) The license holder employing Non Nepali nationals should eventually work for capacity building of Nepali citizens and replace them at appropriate time. 36. Minimum salary of the Workers and Employees: (1) The minimum salary and facility of workers and employees working in the Special Economic Zone shall be as determined by the Authority. (2) The foreign worker or employees will be entitled to repatriate 60 percent of their net income in convertible foreign currency. 37. Will be as per Agreement:

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(1) Whatever is written in the existing laws, with regards to salary, facilities, health, security, work time, code of conduct, and welfare measures of the workers and employees in industries within the Special Economic Zone shall be as per the agreement between Industry and Worker or Employee, which is made within the scope of this Act. (2) Whatever is written in the sub-section (1), the other social security provisions would be as per the related industry norms, for the workers and employees working in the industries of the Special Economic Zone. (3) The industry will have to inform the Authority about social security provisions according to sub-section (2) and Authority can monitor whether such arrangements are followed or not. 38. Grievance Management committee: (1) A committee would be formed as follows, in every Special Economic Zone to manage the grievances of the workers and employees working in industries in those Zones: (a) One officer level employee in the offices of related Special Economic Zone, (b) A representative of the investors from the related Special Economic Zone, (c) A representative of the labour unions from the related Special Economic Zone. (2) The side that does not agree to the verdict given by the committee under subsection (1), can lodge a complaint at Labour court. 39. Should not carry out work that causes loss to the Industry: The workers and employees working in the industry established in the Special Economic Zone should not carry out any work that would have negative impact upon the industry and its production.

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Chapter 8 Provision related to Punishment and Appeal

40. Punishment: (1) If the license holder sells the produced goods and services in excess amount than that prescribed in section 11 (2) in the domestic market then the Authority shall charge appropriate fine. (2) The Office may fine a sum up to Rs. 100,000 to the industry that breaches this Act or Rules framed hereunder or the agreement concluded under this Act, depending upon the nature of breach. (3) If anyone incurs loss because of a license holder breaching this Act or Rules under it, then the Authority shall make the concerned industry to reimburse the loss amount. (4) The Authority shall provide appropriate opportunity for clarification to the concerned license holder before initiating action against them. 41. Can File Appeal: The License holder who is not satisfied with the decision taken under section 40, may file an appeal with the concerned Appellate Court within thirty five days of receipt of the notice thereof.

Chapter 9 Treasury and Audit

42. Treasury of the Authority:

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(1) There will be a separate treasury of the Authority and following types of funds will remain in that treasury: a) Fund obtained from Nepal Government, b) Loan, grant or Assistance obtained from the foreign government or international organizations, c) Fund available for the Authority from the rent, lease or sale of its properties. d) Service Fee amount from the services provided by the Authority to the Industries e) Funds from other sources (2) While obtaining fund according to sub section 1 (b), it is necessary to take approval from Nepal Government. (3) The fund obtained by the Authority under sub section 1 will be deposited in any commercial bank in Nepal. (4) All the expenditures of the Authority will be borne by the treasury according to sub section 1. (5) The operation of the treasury of the Authority shall be as prescribed. 43. Authority's Account and Auditing: (1) The accounts of the Authority will be maintained as per the existing structure and system of the Nepal Government. (2) The audit of the Authority shall be carried out by the Office of the Auditor General. (3) Nepal Government can, at any time, examine the accounts of the Authority if it deems so.

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Chapter 10 Miscellaneous
44. Transfer May Be Made: (1) The License holder may, sell ownership of its share in the industry in full or part and transfer it to any other person, informing the Authority 35 days prior to doing so. (2) If the industry is transferred under Sub-section (1), the conditions of the agreement concluded between the Authority and the license holder at the time of establishment of the industry shall be deemed to be applicable to the person receiving the ownership. 45. Making fund available to the Local Agency: The Authority shall make available 10 percent of the lease or rent amount available from the Industry in the Special Economic Zone to the concerned municipality or Village Development Committee. 46. Environment Impact Assessment or Evaluation: (1) Notwithstanding anything mentioned in the prevailing laws, the authority shall, itself, exercise all right enjoyed by any other institution concerning environmental impact assessment and preliminary environmental audit to be made under prevailing laws with respect of the industry to be established in the Special Economic Zone. (2) The standards of Environmental Impact Assessment or Preliminary Environmental Audit under Sub-section (1) shall be as fixed by the authority. 47. Inspection, Monitoring and Supervision:

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(1) The Authority shall inspect, monitor and supervise the industries in the Special Economic Zone. (2) While carrying out Inspection, Monitoring and Supervision according to sub section 1, if the Authority finds that any license holder is carrying out any action against this Act or rules under this Act, then the Authority can give necessary direction to the license holder. (3) It shall be the duty of the concerned license holder to abide by the direction given by the Authority, under sub-section (2). 48. Submitting Report: (1) The License holder shall submit annual export data of goods and services and the annual report of income and expenditure incurred by the industry operated by it to the Authority within three months from the date of completion of each fiscal year. (2) The Authority should submit its annual report to Nepal Government within four months from the end of the fiscal year. (3) Besides other things in the report according to sub-section 1, the report should also include the achievement from the establishment of such special economic zone, its impact upon the national economy and the work executed by the Authority throughout the year. (4) Nepal Government can publicly publish the annual report pursuant to sub section 2. 49. Delegation of Powers:

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(1) According to this Act, in relation to service and facilities given to the investors, the officer executing his/her power, can delegate the power to the Authority, remaining under the prevailing laws. (2) The Authority may delegate some of its powers under this Act to the Chairperson, member or any authorized employee as required. 50. Shall be as per this Act: Whatever is written in the existing laws, for things stated in this Act, it shall be according to the Act and for other it shall be as per the existing laws. 51. Can provide Direction: Nepal government can give necessary direction to the Authority for the operation, management and development of the Special Economic Zone and it shall be the duty of the Authority to comply with such directives. 52. Contact with Nepal Government: The Authority while making contact with Nepal Government should make it through the Ministry of Industry, Commerce and Supplies. 53. Formulating and Implementing Directive: The Authority, for the management of industries established in the Special Economic Zone, and to solve the problems arising between industries and workers and employees, can formulate and implement necessary directives. 54. Authority to Frame Rules: Nepal Government can formulate necessary rules for implementing the objective of this Act.

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