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5.1 Customs Duties

(a) Subject to Section 21.0, the Company shall be permitted to import into the State free of all customs duties, levies, tariffs, and similar or related charges, all the supplies, goods, materials, fuel, machinery, equipment and consumer goods necessary to properly carry out the Project in its own name or in the name of its sub-contractors or other persons acting on its or their behalf, provided that all such imports are wholly and exclusively destined for use in the Company’s activities hereunder and are imported into the State in the name of or consigned to the Company.
(b) The State shall provide procedures to expedite the admission, clearance, and verification of use by the State’s authorized customs, foreign investment authority, or mining authority representatives, as applicable, of all imports by the Company.
(c) The Company, its purchasers and transporters will have the right to export freely and at any time the quantities of Minerals produced from the Mining Area free of Taxes and/or duties. For greater certainty, this is subject to Section 4.0, Royalties.
(d) The Company, its sub-contractors and persons acting on its or their behalf may re-export, free of levies and export duties, goods imported in accordance with this Agreement when they are no longer necessary for the Project or for the purposes of repair.
(e) Other than levies and import duties as provided for in this Agreement, the Company, its sub-contractors and persons importing on its or their behalf will not be subject to any other payment in this respect of the importation of goods, supplies, materials, fuel, equipment and consumer goods.
(f) Foreign personnel assigned to work in the State on behalf of the Company or its sub-contractors, and their families, shall be permitted to import and re-export their personal effects into and from the State free of customs duties.
(g) The State may maintain a minimal customs fee for the inspection of imported goods for safety, health and other reasons. Such fees shall not exceed __% of the value of imports.

5.2 Reimbursement of Import Duties

If items on which no customs duties or levies are paid are not re-exported or totally consumed within [three (3)] years after importation, and are afterwards sold, exchanged or transferred in the State (except to the State), the Company shall pay to the State the customs import duties and levies on the then fair market value of those items within thirty (30) Days of the date of sale, exchanged or transfer. The Company shall submit to the State quarterly reports on the fair market value and actual transfer price of asset dispositions on assets which benefited from reduced or zero import duties.

Example 1
Import Duty on goods imported into County:

i) exemption and tax reliefs on import duty of capital goods, equipment, and machinery and supplies are granted to the Company based on [Foreign Capital Investment law].
ii) import of other goods into County customs areas, including personal effects shall be subject to the customs rule in accordance with the prevailing Law and Regulations.
iii) excise tax on tobacco and liquor are governed by prevailing legislation.

Example 2
Duties, Consumption Taxes and Other Assessments.

(i) Imports into the County by Company shall be exempt from payment of customs duties, and all other sales and excise taxes, on goods and services used in the Project. Likewise, imports by Company shall be exempt from all taxes, fees, administrative charges and other charges related to the importation of goods and services. However, if any such imported articles cease to be used in connection with the Project within three years of being placed in service by Company, Company shall be responsible to pay any such duties or taxes with respect to such imported articles at the rate applicable at the time of importation or other due date for payment under the applicable Law imposing such duties or taxes at such time or times, but applied to the normal market value of the item or items at the time of cessation of use. With respect to importations of finished articles having a value of less than fifty thousand Dollars ($50,000), the date of importation shall be deemed to be the date the article is placed in service. The normal market value shall be the sale price in the case of a disposition to a party that is not an Affiliate or an arm’s-length price in the case of a sale to an Affiliate or use or retention by Company outside the Project. Additionally, the exports from Company shall be exempt from all taxes, fees, duties, administrative charges and other charges related to exportation of goods and services.
(ii) Company shall be exempt from all forms of taxes, permits, licenses, fees and duties (excluding the Exchange Commissions in accordance with Section 9.6(b)), sales taxes, gross revenue taxes, value added taxes (including the [specific tax] or the future tax that replace or complement such tax), customs export duties and excise taxes, on all goods, services and rights purchased, consumed, produced, sold or leased that relate to the activities concerning the construction, operations and closure of the Leased Properties, including fees payable with relation to the Construction of the Mine to the Municipal Governments and other governmental and municipal entities that do not correspond to services effectively provided to Company.

Example 3

18.1 Imports.

The Concessionaire may, in accordance with applicable Law, import and use for Operations, and subsequently export, any and all machinery, equipment, vehicles, supplies, consumable items, fuels, petroleum products, explosives and any other thing whatsoever reasonably required with respect to Operations. The Concessionaire must at all times comply with applicable Law regarding the safe use, sale, disposal and security of fuels, petroleum products, and explosives.

18.2 Taxes on Resale of Imported Items.

The Concessionaire may sell, in Country, all imported items that are no longer needed for Operations, except that the Concessionaire may not sell explosives, gasoline or diesel within Country to third parties without the Government’s consent. If such imported items were exempted in all or in part from Taxes and Duties on import into Country, then the Concessionaire must, upon their sale, pay to the Government those Taxes and Duties that would otherwise have been payable under applicable Law on such items and fulfill all formalities required by Law in connection with such sales.

18.3 Right to Export Minerals and Other Rights.

The Concessionaire (i) may, directly or through appropriate contractual arrangements, market and sell the Product(s) obtained from Operations during the Term of the relevant Mining License to any Person in any country or state, subject in all cases to applicable Law and the provisions of this Agreement, and (ii) subject to its obligations to pay Royalty, Taxes and Duties and such other payments to the Government under this Agreement, may receive all income and proceeds from such sales and deposit them in banks within Country and outside of Country of its own choosing (provided that the approval of the Central Bank of Country for the choice of external bank, if required by applicable Law, shall be obtained in accordance with applicable Law).

Example 4
3. Rights to Export and Import and Arms’ Length Dealings

3.1 Subject to Clause 4 and the payment of applicable duties and taxes not otherwise exempted or deferred pursuant to this Agreement, the Company may import and where it so desires, re-export without further reference to [Government], materials, equipment and services to be used in implementing the Scheduled Programmes provided that [Government] has not notified the Company that the import and/or re-export (as applicable) of such materials and equipment would give rise to the matters specified in Clause 3.2(b)(i) or (ii).

Example 5
ARTICLE 11 EXEMPTION FROM CUSTOMS, TAXES, AND DUTIES
11.1 Imports
Licensee and its Contractors shall be entitled to import into [name of host country] all consumables (excluding food items), supplies, materials, and equipment necessary for its Exploration Activities and Mining Activities, including drilling, geological, geophysical and other mining machinery and equipment, aircraft (subject to applicable licensing procedure), vehicles and other transportation equipment, and parts therefore (other than sedan cars and fuel therefore), chemicals, films, seismic tapes, house-trailers, office-trailers, and disassembled prefabricated structures free of import duties and taxes, provided that:

(i) all the items are wholly and exclusively destined for use in Licensee’s activities hereunder and are imported into [name of host country] in the name of or consigned to the Licensee; and
(ii) similar goods of reasonably equal quality, delivery, parts availability, and price are not readily available in [name of host country].

11.2 Government Verification
The Government and its authorized representatives shall have the right to verify, acting within a commercially reasonable time, that any items imported by Licensee or its Contractors meet the conditions set forth in Section 11.1 (Imports). The Government shall provide procedures to expedite the admission and clearance by the Government’s authorized customs representatives of all imports destined exclusively for use in Licensee’s activities hereunder and Governmental verification of such use.

11.3 Expatriate Personnel
The expatriate personnel of the Licensee and Licensee’s Staff shall be entitled to import, free of all duties and taxes, their personal effects, including single sedan car within six (6) months of their arrival in [name of host country]. Licensee and Licensee’s Staff shall have, in addition to all other rights recognized in [name of host country] with respect to such imported property, the right to export same as well as any other imported property on which duty was paid at the time of import, without payment of any duties or taxes.

11.4 Re-Export
Licensee and Licensee’s Staff shall have the right to re-export, free of all export duties and taxes, property which is no longer required for use in Licensee’s activities carried out hereunder, which property was originally imported free of duties and taxes as provided in
Section 11.1, and shall be subject to Article 26 (ACQUISITION OF PROPERTY). Licensee and Licensee’s Staff shall also have the right to dispose of any of their respective property within [name of host country], provided that in the case of property imported under import duty privileges in accordance with Section 11.1 (Imports), they shall pay all duties and taxes due upon such sale in accordance with the Law then in force.

11.5 Export of Minerals
Subject to Licensee complying with customs and bank formalities, Licensee shall have the irrevocable right to export from [name of host country], without restriction whatsoever and free of all duties or taxes on such export, all Minerals produced under this Agreement and under any applicable License.
[…]

ARTICLE 13 EXPORT AND SALE OF SAMPLES
13.1 General
Licensee may remove, transport, analyze and, with the prior consent of the Licensing Authority, export samples of Minerals collected during the Exploration Activities for testing. However, Licensee shall not dispose of such samples without the prior consent of the Licensing Authority.

13.2 Duplicate Samples
Except for bulk samples, the Licensee shall maintain and make available to the Licensing Authority duplicates of samples exported for testing when requested, in writing, to do so by the Licensing Authority.

REFER TO MMDA DISCLAIMERS AND MMDA USER’S GUIDE
PRIOR TO ANY USE OF THIS DOCUMENT.

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