Special Economic Zones Law (2017 Revision)

CAYMAN ISLANDS Special Economic Zones Law (2017 Revision) SPECIAL ECONOMIC ZONES (CAYMAN ENTERPRISE CITY) ORDER (2019 Revision) Supplement No.5 published with Legislation Gazette No. 4 of 21st February, 2019. PUBLISHING DETAILS Revised under the authority of the Law Revision Law (1999 Revision). The Special Economic Zone (Cayman Enterprise City) Order, 2011, consolidated with the Special Economic Zone (Cayman Enterprise City) (Amendment) Order, 2012, the Special Economic Zone (Cayman Enterprise City) (Amendment) Order, 2013, the Special Economic Zone (Cayman Enterprise City) (Amendment) Order, 2014, the Special Economic Zone (Cayman Enterprise City) (Amendment) Order, 2015, and the Special Economic Zone (Cayman Enterprise City) (Amendment) Order, 2017. Originally made — Order, 2011-10th January, 2012 Order, 2012-31st January, 2012 Order, 2013-23rd April, 2013 Order, 2014-7th October, 2014 Order, 2015-5th May, 2015 Order, 2017-6th April, 2017. Consolidated and revised this 1st day of January, 2019. Page 2 Revised as at 1st January, 2019 c Special Economic Zones (Cayman Enterprise City) Order Arrangement of Paragraphs CAYMAN ISLANDS Special Economic Zones Law SPECIAL ECONOMIC ZONES (CAYMAN ENTERPRISE CITY) ORDER (2019 Revision) Arrangement of Paragraphs Paragraph Page 1. Citation ......................................................................................................................................5 2. Declaration of special economic zone ........................................................................................5 3. Declaration of developer ............................................................................................................5 4. Special economic zones businesses authorised to be carried on in Cayman Enterprise City ............................................................................................................................................5 SCHEDULE 1 ..................................................................................................................... 7 DECLARATION OF SPECIAL ECONOMIC ZONE - CAYMAN ENTERPRISE CITY 7 SCHEDULE 2 ..................................................................................................................... 9 TYPES OF BUSINESSES AUTHORIZED TO BE CARRIED ON IN CAYMAN ENTERPRISE CITY 9 ENDNOTES ..................................................................................................................... 15 Table of Legislation History: .............................................................................................................. 15 c Revised as at 1st January, 2019 Page 3 Special Economic Zones (Cayman Enterprise City) Order (2019 Revision) Paragraph 1 CAYMAN ISLANDS Special Economic Zones Law (2017 Revision) SPECIAL ECONOMIC ZONES (CAYMAN ENTERPRISE CITY) ORDER (2019 Revision) 1. Citation 1. This Order may be cited as the Special Economic Zones (Cayman Enterprise City) Order (2019 Revision). 2. Declaration of special economic zone 2. (1) The lands and property described in Schedule 1 are hereby declared for the time being to be the special economic zone to be known as Cayman Enterprise City. (2) Notwithstanding subparagraph (1), where the lands and property declared pursuant to subparagraph (1) are declared to be temporary spaces for the special economic zone known as Cayman Enterprise City, the declaration shall expire after five years from the date of commencement of this Order unless such period is extended by Cabinet on the recommendation of the Authority. 3. Declaration of developer 3. Cayman Enterprise City Limited is hereby declared to be the developer of Cayman Enterprise City. 4. Special economic zones businesses authorised to be carried on in Cayman Enterprise City 4. The types of businesses specified in the Schedule 2 are authorized as special economic businesses to be carried out in Cayman Enterprise City. c Revised as at 1st January, 2019 Page 5 Special Economic Zones (Cayman Enterprise City) Order (2019 Revision) SCHEDULE 1 SCHEDULE 1 (paragraph 2) DECLARATION OF SPECIAL ECONOMIC ZONE - CAYMAN ENTERPRISE CITY 1. All those parcels of land, buildings, units or areas, namely the Units of the building registered as Block 20B, Parcel 384 known as “Breezy Castle” designated as the first of the temporary spaces for the special economic zone known as Cayman Enterprise City for which Cayman Enterprise City Limited has by agreement with the owner agreed to lease for the carrying on of special economic zone business by special economic zone enterprises which hold a trade certificate and this designation shall expire on 2nd February, 2017. 2. All those parcels of land, buildings, units or areas, namely, the Units of the building registered as Block 13E, Parcel 164 known as “Baytown Plaza” designated as the second of the temporary spaces for the special economic zone known as Cayman Enterprise City for which Cayman Enterprise City Limited has by agreement with the owner agreed to lease for the carrying on of special economic zone business by special economic zone enterprises which hold a trade certificate and this designation shall expire on 2nd February, 2017. 3. All those parcels of land, buildings, units or areas, namely floors 1 and 2 of the building registered as Block 13D, Parcel 418 known as “BritCay House” designated as the third of the temporary spaces for the special economic zone known as Cayman Enterprise City for which Cayman Enterprise City Limited has by agreement with the owner agreed to lease for the carrying on of special economic zone business, specifically for the colocation of certain information technology equipment, by special economic zone enterprises which hold a trade certificate and this designation shall expire on 28th April, 2016. 4. All those parcels of land, buildings, units or areas of the property registered as George Town Commercial, Block OPY, Parcel 49 known as the “Flagship Building” designated as the fourth of the temporary spaces for the special economic zone known as Cayman Enterprise City for which Cayman Enterprise City Limited has by agreement with the owner agreed to lease for the carrying on of special economic zone business by special economic zone enterprises which hold a trade certificate and this designation shall expire on 2nd February, 2017. 5. All those parcels of land, buildings, units or areas, namely, two racks in the “Brac Informatics Centre” situated in Cayman Brac registered as Block 98D Parcel 101 designated as the fifth of the temporary spaces for the special c Revised as at 1st January, 2019 Page 7 Special Economic Zones (Cayman Enterprise City) Order (2019 SCHEDULE 1 Revision) economic zone known as Cayman Enterprise City for which Cayman Enterprise City Limited has by agreement with the owner agreed to lease for the carrying on of special economic zone business by special economic zone enterprises which hold a trade certificate and this designation shall expire on 28th April, 2016. 6. All those parcels of land, buildings, units or areas, namely, one rack in the “Brac Informatics Centre” controlled at Camana Bay registered as Block 12D, Parcel 95 and identified as Cabinet I13 designated as the sixth of the temporary spaces for the special economic zone known as Cayman Enterprise City for which Cayman Enterprise City Limited has by agreement with the owner agreed to lease for the carrying on of special economic zone business by special economic zone enterprises which hold a trade certificate and this designation shall expire on 28th April, 2016. Page 8 Revised as at 1st January, 2019 c Special Economic Zones (Cayman Enterprise City) Order (2019 Revision) SCHEDULE 2 SCHEDULE 2 (paragraph 4) TYPES OF BUSINESSES AUTHORIZED TO BE CARRIED ON IN CAYMAN ENTERPRISE CITY The special economic zone known as Cayman Enterprise City shall comprise, inter alia, businesses that are of types described under the Business Parks listed below and referred to as “parks”. Entities, other than the developer and the development Companies, holding licences from the Cayman Islands Monetary Authority established by section 5 of the Monetary Authority Law (2018 Revision) and referred to as “CIMA” shall not be permitted to obtain a trade certificate so as to carry out the operations for which they are licensed by CIMA in the special economic zone but if they wish to operate a business of a type described in this Schedule in the special economic zone they shall be permitted to undertake such business in the special economic zone provided that they can establish that they are operating in the special economic zone solely such a business type. Notwithstanding the foregoing, entities holding licences from CIMA shall be permitted to establish a branch of their main business in the Islands, in the special economic zone to service the needs of zone businesses and members of the public, visiting or working in the special economic zone. BUSINESSES PARKS Cayman Internet Park Designed to attract information technology and software businesses, with the intention of creating the largest Information and Communications Technology (“ICT”) cluster in the region. This park includes businesses primarily involved in — (a) telecommunications and related service activities - this includes activities involving wired, wireless or satellite technologies to transmit voice, data, sound or video; (b) computer programming, consultancy, and related activities - this includes the following activities of providing expertise in the field of information technologies: writing, modifying, testing and supporting software; planning and designing computer systems that integrate computer hardware, software and communication technologies; on-site management and operation of clients’ computer systems and data processing facilities; and other professional and technical computer- related activities; (c) data processing, hosting and related activities, and web portals - this group includes the provision of infrastructure for hosting, data c Revised as at 1st January, 2019 Page 9 Special Economic Zones (Cayman Enterprise City) Order (2019 SCHEDULE 2 Revision) processing services, information services and related activities, as well as the provision of search facilities and other portals for the Internet; and (d) engineering design and manufacturing of special-purpose machinery and components for the ICT sector, including in relation to unmanned aerial vehicles. This Park does not include businesses involved in the separate sale of computer hardware or software, nor the separate installation of servers and personal computers. Cayman Science and Technology Park Designed to attract businesses specialized in natural sciences, specifically focused on biotechnology (research and application of technology that uses biological systems, living organisms or derivatives thereof, to make or modify products or processes for specific use), development of biomedical devices, development of pharmaceuticals and environmental technology (research and application of technology to monitor, model and conserve the natural environment and resources, and to curb the negative impacts of human involvement). This park includes businesses primarily involved in — (a) research and experimental development in natural sciences and bioengineering; (b) provision of professional scientific and technical services (for example, life and natural-sciences technology related consulting and analysis services) for which advanced professional, scientific and technical skill levels are required; and (c) engineering design and manufacturing of special-purpose machinery and components for the natural sciences and environmental technology sectors. Licensed companies in this Park may be engaged in clinical research, but this research is not to be conducted locally. Cayman Media Park Designed to attract electronic media and integrated media-related businesses with the intention of creating the largest media and marketing related cluster in the region. This park includes business primarily involved in electronic publishing, including the digital publication of e-books, digital magazines, and the development of digital libraries and catalogues and music, film, TV, new media, leisure and entertainment, news, programming, broadcasting, advertising and marketing, market research, and information service businesses. Page 10 Revised as at 1st January, 2019 c Special Economic Zones (Cayman Enterprise City) Order (2019 Revision) SCHEDULE 2 This park does not include businesses involved in the retail sale of software, nor the online provision of software, that is, application hosting and application service provisioning and does not include business involved in the wholesale or retail trade of CDs, DVDs, etc., including rental. Cayman Commodities and Derivatives Park Designed to create a centralised global commodity and derivatives market in the Islands, with the intention of being the first dedicated commodities and derivatives centre in the Americas’ time zone. Cayman Commodities and Derivatives Park shall comprise businesses in the commodities and derivatives sector that are primarily involved in — (a) the production of commodities, as well as in activities relating directly or indirectly to commodities, derivatives, futures and options; commodities and derivatives fund management and advisory services; security and commodity contracts brokerage or proprietary trading for own account, including facilitating and supporting such businesses; and (b) the provision of an electronic marketplace for the purpose of facilitating the buying and selling of commodities, derivatives, futures and options products, including commodities contracts, futures commodity contracts and commodity options. Where, prior to commencement of its operations, Cayman Enterprise City Ltd. formally agreed with the Cayman Islands Government to implement a Commodities and Derivatives Exchange Law prior to operating an electronic marketplace for commodities and derivatives exchange, no entities may be licensed to provide such an electronic marketplace or to undertake business activity at such a marketplace until a suitable regulatory framework has been approved by the Cayman Islands Monetary Authority and necessary legislation is in force. Cayman Outsource Park This park is not open to businesses other than the developer specified in paragraph 3 of this Order, a subsidiary of the developer, or businesses working in a formal partnership with the developer, and offering services only to businesses established within any of the parks in the special economic zone. The intent of this park is to facilitate the production and manufacturing, for special economic zone based businesses, of products in other jurisdictions. The types of business included in this park are primarily involved in management consultancy and office administrative support activities as relating to arrangements for coordinating and overseeing production and manufacturing in other jurisdictions. c Revised as at 1st January, 2019 Page 11 Special Economic Zones (Cayman Enterprise City) Order (2019 SCHEDULE 2 Revision) Cayman International Academic Park Designed to attract higher education institutions with a focus on the areas of technology underlying the other parks, that is, information technology, biotechnology, environmental technology, and integrated media and new media technology. This park also includes higher education institutions related to the Cayman Maritime Services Park. Licensing and operation of businesses in this park shall not occur until written agreement is provided by the Government. Cayman Maritime and Aviation Services Park Designed to attract maritime and aviation services businesses to assist in establishing the Islands as the largest maritime and aviation services cluster in the region, Cayman Maritime and Aviation Services Park comprises the following — 1. Maritime services as follows — (a) ship owners; (b) shipbrokers; (c) shipping financiers; (d) technology companies and start-ups engaged in innovative maritime research and development; (e) the head offices or satellite offices of maritime industrial businesses and yacht manufacturing and repair businesses; (f) demurrage calculation and post deal expenses calculation; (g) freight trading and brokerage businesses; (h) crew salaries and benefits processing companies; (i) bunker brokerage companies; (j) shipping operations; (k) logistics planning and vessel management companies; (l) management consulting; and (m) other specialised services to maritime sector businesses; and 2. Aviation services as follows — (a) commercial air transport operations, including — (i) transporting passengers over regular routes and on regular schedules; (ii) charter flights to transport passengers, for scenic flights or for sightseeing; (iii) air transport equipment rental (with operators) for passenger or freight transport, or both; Page 12 Revised as at 1st January, 2019 c Special Economic Zones (Cayman Enterprise City) Order (2019 Revision) SCHEDULE 2 (iv) general aviation activities such as aero clubs transporting passengers for instruction or pleasure; (v) aerial surveillance and load-lifting, or both; and (vi) transporting freight, over regular routes and on regular schedules or non-scheduled routes; (b) aerospace-related activities — developing and launching satellites, and space vehicles, space transport, innovative aviation and aerospace research and development; and (c) manufacturing and management — aircraft manufacturing and repair activities, logistics planning and aircraft management, management consulting and other specialised services to the aviation and aerospace development sector. The above is subject to the condition that direct transactions with the following are not permitted — (a) for Cayman Islands-flagged vessels, the Maritime Authority of the Cayman Islands under the Maritime Authority Law (2013 Revision); and (b) for operations mentioned in paragraph 2(a), the Cayman Islands Airports Authority under the Airports Authority Law (2005 Revision). Publication in revised form authorised by the Cabinet this 12th day of February, 2019. Kim Bullings Clerk of the Cabinet. c Revised as at 1st January, 2019 Page 13 Special Economic Zones (Cayman Enterprise City) Order (2019 Revision) ENDNOTES ENDNOTES Table of Legislation History: SL # Law # Legislation Commencement Gazette 18/2017 Special Economic Zones (Cayman Enterprise City) 12-Apr-17 GE32/2017/s1 (Amendment) Order, 2017 17/2016 Special Economic Zones (Cayman Enterprise City) 8-May-15 GE34/2015/s2 (Amendment) Order, 2015 59/2014 Special Economic Zones (Cayman Enterprise City) 20-Oct-14 G21/2014/s3 (Amendment) Order, 2014 46/2013 Special Economic Zones (Cayman Enterprise City) 21-May-13 G10/2013/s1 (Amendment) Order, 2013 8/2012 Special Economic Zones (Cayman Enterprise City) 3-Feb-12 GE12/2012/s3 (Amendment) Order, 2012 5/2012 Special Economic Zones (Cayman Enterprise City) Order, 2011 31-Jan-12 GE10/2012/s4 c Revised as at 1st January, 2019 Page 15 Special Economic Zones (Cayman Enterprise City) Order (2019 ENDNOTES Revision) (Price: $3.20) Page 16 Revised as at 1st January, 2019 c