cnzf

PROCEDURE FOR APPLICATION PROCEDURES AND PAYMENT OF DEPOSIT FOR GUARANTEE COMPANIES

Based on the Decree:

1. 46-91 "Law on Export Processing Zones" (Gazette No.221 of 22 November 1991).
2. 50-2005 Rules of Order of Export Processing Zones "
3. Articles 22, 55, 80, 81, 82, 83 and 85 of Decree No. 31-92 and addition to Decree No. 31-92, paragraph d) of Decree No.21-2003.

This application procedure was approved by the Regular Session in CNZF no.117 of 7 October 2005, entered into force on the same day.

II) Requirements:
To qualify as an eligible operating company, to develop the park must have a minimum of 10 square meters of industrial roof, with one factor and environments detailed in paragraph 17 of 18.1 to 18.4.4 Article 13 of Chapter IV Decree 50-2005 of the "Regulations of the Order of Export Zones."

1. Letter of application to join the Free Trade Zone System Operator of the project as a Free Zone, signed by the Trustee of the company and authenticated by a notary.
2. Feasibility Study Project, accompanied by a short executive summary which should contain inter alia the following information:

1.
1. Project Background: origin, name and background (s) of the investor group (be they natural or legal persons) under the project, stock composition
2. Name and address of the company and its address.
3. Photocopy of the Book of Incorporation duly registered with the Public Registry, and authenticated by a Notary Public. The duration of the company may not be less than 25 years.
4. Name of the shareholders and board members.
5. Name of Legal Representative
6. General Description of the project, stating:

1.
1.
1. Location.
2. Mechanisms for promoting the project.
3. Total area of land.
4. Preliminary Development of the project, stating the following: perimeter fence, access roads (input-output), landscaping, parking, administrative offices of the operator, customs office of the delegation, control booths (input-output) and surveillance , storm drains, streets and sidewalks, a system for managing domestic wastewater, industrial buildings, etc..
5. Technical and engineering.
6. Industrial roof (detail size and use of each area).
7. Plan overall investment amount, source and resource sectors.
8. Timeline for project implementation (Físico - Financiero).
9. Budget revenues and expenditures.
10. Statement.
11. Financial evaluation.
12. Organization.
13. Details of the local delegation was put up for customs.
14. Number of people working in the operating company.
15. Jobs that generate the highest level of occupation
16. Catchment area of the project, giving direct access to sources of manpower and infrastructure works and services required for the optimal functioning of the project (roads, ports, utilities, telephones, etc.).
17. Conclusions and recommendations.

1. Copy of the deed of the corporation formed for the sole purpose to develop, operate, manage and promote Zones, and registered at the Public Registry of Commerce, all in accordance with the laws of Nicaragua. The copy must be given by a Notary Public (Vale as original).

1. Copy of the Book of the Dominion of real property must be given by a Notary Public (Vale as original).

1. Copy of Power of Attorney of Directors, duly registered public business, all in accordance with the laws of Nicaragua. The copy must be given by a Notary Public (Vale as original).

1. Copy of identification of legal representative (person to whom the board of the company given the general power of administration). If the person is Nicaraguan, the identification must be a photocopy of the card. If the legal representative is abroad, a photocopy of the passport.

1. Location map of the property and polygon inscribed in CATASTRO (attach copy) indicating directions or coordinates and azimuth in order to specify the location, dimensions and boundaries, which should match the domain of property deed recorded in the Public Register as defined in Artos.1 and Arto.4 Decree 46-91.

1. Two (2) bank references and two (2) trade references for the company. If the company's businesses are formed, must submit in addition to the above requirements, the financial statements (2) fiscal years.

1. Fill out the application form that came with the most possible description (including the annexes that apply).

1. Pay a net charge of five hundred dollars (U.S. $ 500.00) to the National Commission of Free Zones, for processing and handling of the request.

1. Net deposit ten thousand dollars (U.S. $ 10,000.00), on behalf of the National Commission of Free Zones, by way of Guarantee.

1. Giving the Delegation of the Customs Area of the facilities necessary for the effective discharge of duties, according to Arto. 13 of Chapter IV and Arto.29 Chapter VIII of Decree No.50-2005 "Rules of the Order of Export Zones." As well as the technical requirements necessary to operate the free zones with the Automated System for Customs ASYCUDA + +

1. Favorable opinion of the Directorate General of Customs - DGSA, according to Arto. 32, Chapter VIII, Decree No. 50-2005 of the "Regulations of the Order of Export Zones" (It should be applied to the DGA by the Technical Secretariat of the Commission once the company is ready to initiate productive operations).

1. Environmental Permit or authorization as the case may be, issued by the Directorate of Environmental Quality, Ministry of Environment and Natural Resources (MARENA). This, according to Arto.62, Chapter XVI, of Decree No.50-2005 "Rules of the Order of Export Zones."

1. Certification and / or Proof of processing of applications for License to Open on Occupational Safety and Health Administration, issued by the Directorate General of Occupational Safety and Health Administration of the Ministry of Labor (MITRAB). That pursuant to the provisions of Ministerial Resolution of Occupational Health and Safety, Arto No.6, Apt No.2, Letter d (Published in the Gazette No.165, Diario Oficial del 1ro. September 1993); and Arto.68, Chapter XVII, Decree No. 50-2005 of the "Regulations of the Order of Export Zones.

1. Proof of availability of basic services (drinking water, domestic sewage, electricity, telephone, internet).

1. Proof of right of way issued by the Ministry of Transport and Infrastructure (MTI), indicating that the company is located outside the right of way (if applicable).

1. Letter of support for the Constancia project and Land Use, issued by the mayor of the municipality where the company will install. Before starting the construction company must have the relevant building permit.

Note: The National Commission of Free Zones reserves the right to request additional requirements.

III. The Technical Secretariat upon receipt of full documentation, must reply within the next thirty (30) days.

IV. The Technical Secretary of the Commission shall submit the request at the next meeting of the Commission, accompanied by an expert opinion, legal and recommendation.

V. The Commission shall decide on the applications submitted and through its Technical Secretary informed the stakeholders of its decision.

VI. The application can be approved, denied definitively whether or corrected according to the Commission lacks information needed corrections or add information needed to complete the feasibility study. In the latter case, the applicant shall be notified (by the Technical Secretary) of the resolution, and once completed the requirements, the company may submit the study for consideration. Once the company has been approved by the Secretary of the Technical CNZF will notify you in writing and then pass the certification of approval issued by the Legal Counsel of the Commission. Also communicate to the approval of the municipality and the following institutions of the Executive Branch: MHCP, DGI, DGSA, MARENA, MAGFOR, and MITRAB MIGRATION.

VII. Once approved the request by the Commission, the Secretary of the same forwarded to the President, a copy of the resolution for the purposes of emission Executive approved the establishment of the zone. This Executive will be published in the Gaceta, Diario Oficial.

VIII. Signature of Investment and Operations Contract as set out in Chap. IV, Article 13, paragraph 13 of Decree No.50-2005 Rules of Order Export Zones.

IX. Charges for procedures and application security deposit:

A. Guarantee: Upon the request of Income Scheme, the operating company will deliver a security at a value of ten thousand dollars net (U.S. $ 10,000.00) in cash, whose term will be the duration of the operation of the company under . If the company is not approved, this deposit will be refunded to the company.

The operating company shall pay a semiannual report on the progress of project implementation before the CNZF, who in turn will make the necessary inspections as required.

In the event that the operating companies are missing any of its obligations, the CNZF proceed according to the powers under the Act of Free Zones and its Regulations and the laws of Nicaragua.

B. Payment: Before submitting the application by the Rules, the Company will pay five hundred dollars Operadora net (U.S. $ 500.00) to the National Commission of Free Zones, in terms of processing and handling.