Free zones (Free Economic Zones – FEZ) are parts of the customs territory of the Republic of Moldova, separated from economic point of view, with strictly delimited area, where local and foreign investors have the right to conduct certain types of activities (production, trade, etc.) in preferential regime.
FEZ are established, at the proposal of the Government, by means of a law passed by the Parliament. The Republic of Moldova has seven Free Economic Zones (FEZ); some of which have more subzones, as follows:
- FEZ "Expo-Business-Chisinau" (Free Enterprise Zone "Expo-Business-Chisinau");
- FEZ "Ungheni-Business";
- FEZ "Balti";
- FEZ "Valkanes Industrial Park";
- FEZ "Tvardita";
- FEZ "Taraclia Industrial Park";
- FEZ "Otaci-Business Industrial Park";
and two industrial zones:
- Marculesti International Free Airport;
- Giurgiulesti International Free Port.
Free zones are established in order to accelerate the socio-economic development by attracting investments, developing the export-oriented production and creating new jobs.
The following activities can be conducted in free zones: manufacturing goods for export; sorting, packing and marking goods; and other such operation and activities. At the same time, the goods that enter FEZ may be used for final consumption including for constructions.
On the territory of FEZ, it is prohibited to produce ethyl alcohol (refined ethyl alcohol, refined ethyl alcohol with an alcoholic strength exceeding 80% vol, ethyl alcohol with less than 80% vol, technical alcohol, denatured alcohol, raw and old spirits distilled from wine, and other derivatives of ethyl alcohol) and other alcoholic products. It is prohibited to import tobacco, tobacco products and produce tobacco products in FEZ.
Only business entities that have obtained the status of resident may benefit from preferential tax and customs regime in the FEZ.
FEZ residents may benefit from various customs facilities:
- goods may be stored for an indefinite period in the FEZ;
- import goods are stored in the FEZ free of customs duties and taxes;
- goods originating from FEZ are exempted from customs duty when brought into the territory of the Republic of Moldova;
- the delivery of domestic goods in FEZ are considered to be exports with zero-rate VAT;
- residents are protected from legal amendments for a period of 10 years.
I. Procedure of bringing/removing goods
In free zones, foreign goods are stored and used free of import duties or any economic policy measures.
Domestic goods are brought into FEZ under the export regime.
Goods are removed from FEZ outside the Republic of Moldova free of import and export duties.
Goods delivered from FEZ to the rest of the customs territory of the Republic of Moldova are regarded as imports subject to relevant taxes and duties.
Goods that are brought into and removed from FEZ territory shall be declared to the customs authorities.
If the manufacturing process on the territory of FEZ generates wastes, they may be removed from the territory of FEZ to the rest of the customs territory of the Republic of Moldova to be destroyed, processed/recycled or used in specialised enterprises. Such an operation shall not be regarded as import, but taxable delivery with the issuance of tax invoice, without submitting the customs declaration.
If goods are brought frequently into the FEZ, a simplified procedure shall be applied: the customs declarations may be submitted periodically. Thus, if the same individual brings in or removes from the free zone the same type of goods periodically, the customs authorities, at the request of the individual, shall allow to submit only one customs declaration for all the batches of goods for a certain period of time (periodic customs declaration).
Certain local goods may be brought for noncommercial purposes into the free zone during one day, with the total value (not exceeding EUR 500) stated in the supporting documents and without filling in the customs declaration.
Legislation:
Law no. 440/2001 on free economic zones
Law no. 625/1995 on the Free Enterprise Zone "Expo-Business-Chisinau"
Law no. 1295/2002 on the Free Economic Zone "Ungheni-Business"
Law no. 26/2010 on the Free Economic Zone "Balti"
Law no. 1527/1998 on the Free Enterprise Zone – Valkanes Industrial Park
Law no. 626/1995 on the Free Enterprise Zone "Tvardita"
Law no. 1529/1998 on the Free Enterprise Zone – Taraclia Industrial Park
Law no. 1565/1998 on the Free Enterprise Zone – "Otaci-Business" Industrial Park
Law no. 8/2005 on Giurgiulesti International Free Port
Law no. 178/2008 on Marculesti International Free Airport
Customs Code of the Republic of Moldova no. 1149/20/07/2000 (Chapter XIII)
