Law on Economic Zones

May 11, 2007 at 11:10 am Leave a comment

The Parliament has approved the Law on Economic Zones. Economic zone will be established in the city of Altanbulag on Russian-Mongolian border and Zamiin-Uud on Chinese-Mongolian border. This legislation envisions virtually tax-free business environment and minimum bureaucratic obstacles for foreign and domestic companies.

Within the Tumen River project, the Tumen River FEZ will be established and developed under the auspices of the United Nations plan for transforming the Tumen river delta (which is divided among North Korea, China and Russia) into a hub of economic growth and international co-operation. The plan includes huge duty-free shipping and processing zone on the Tumen River. It is envisaged that this project will allow Japan and South Korea to tap into the region’s natural resources while opening a land route from the Sea of Japan to Europe. Mongolia hopes to improve it links to the Pacific Ocean, its access to seaports, airports, and mass markets and telecommunications facilities.

Altanbulag Free Trade Zone

Altanbulag Free Trade Zone (hereinafter referred to as AFTZ) is located in the northern part of Mongolia with a planned area of 500 hectares. It is adjacent to Khiagt border port of Russia, 335 km away from the capital city of Ulaanbaatar and 25 km away from Sukhbaatar city of Selenge province. With its favorable advantages and opportunities free zone have a broad vision of AFTZ to expand to a major trade center with a free flow of products and goods and operations of internationally well-known companies and corporations, creating a combined network of centralizing, storing, sorting and distributing the products. Likewise, we look forward to it to develop into a new modern industrial place with functions of international trade, import and export processing and warehousing. The Free Trade Zone (hereinafter referred to as FTZ) is also expected to serve as a gateway for foreign investments.

Accessibility
AFTZ is directly accessible by an automobile road from Ulaanbaatar city and Sukhbaatar railway station of Russia-Mongolia-China international railway network. Passenger, freight and container transportation is convenient.

Immigration
AFTZ Administrative Office will monitor that the rules and regulations governing the entry into the Mongolian territory do not obstruct your work in the Free Zone.

The Administrative Office of AFTZ will assist you in the following processes:

1. Preparation of the necessary documents;
2. Application and issuance of entry visa upon arrival at the FTZ;
3. Application and issuance of entry visa upon arrival at any border points of Mongolia.
4. Extension of visa and providing assistance in obtaining residence visa.

Services
The Administrative Office of AFTZ will support and assist you in the following services to facilitate your business activities and to ensure that your stay is hassle-free.

* One stop service;
* Easy registration;
* Facilitation of the issuance of licenses and insurance;
* Introduction of business partners;
* Secretarial services, including translations, typing, etc;
* Security service.

Other related services will also be available upon request and it will include accommodation, catering services, restaurant and food outlets, leisure and social activities, etc.

Business and Investment Opportunities

AFTZ will give opportunities for companies, enterprises and other economic organizations as well as individuals both in and out of Mongolia to establish enterprises, joint ventures and other economic organizations to handle businesses related to the FTZ main functions-international trade, import and export processing and warehousing.

The operations in AFTZ will include, the reprocessing of first stage processed and semi processed products using advanced and modern technology and exporting of the final products to foreign markets; storage of export and imported products, sorting, packaging, classification of these products, affixing logo on them and other related operations, as well as activities of industrial and service nature, including selling the products in foreign countries and regions.

Zamyn-Uud Free Economic zone

“Zamyn-Uud” FEZ is located in Zamyn-Uud border point town in the southern part of Mongolia. It is situated in 780 km from Ulaanbaatar, the capital city of Mongolia, 230 km from Sainshand, the center of Dornogobi province and 8 km from Erlian town of China. Allocation for the FEZ is an area of 900 hectares.

The Law on the Legal Status of the “Zamyn-Uud” FEZ envisages to develop the zone with three major sections – industrial, commercial, and tourism-service.

1. Industrial section

It is envisaged to establish and develop therefore environmentally friendly industrial production. This would include assembling factories of audio and video equipment, home appliances and electronic goods on the order of foreign companies and the production of textiles and clothing, furniture and its details, souvenirs and other products for export.

2. Commercial section

The commercial part would include warehouses, business, exhibition centers and commodity exchange, and parceling, bottling and packaging of goods, and banking, financial services, information and communication centers

3. Tourism and services section

Implementation of projects aiming to develop tourist camps, hotels, restaurants, cafes, fast food shops and entertainments, golf course, horse racing , camel polo and a casino.

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Entry filed under: Law on Economic Zones.

Land Reform and the Rights of Foreign Investors Privatization of State Propoerty

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Information contained in this web site are partly derived from a CD-ROM "Guide to Investment and Trade-Mongolia", produced by Foreign Investment and Foreign Trade Agency (FIFTA). All trademarks are properties of their own respective owners.

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