THE
SIX HUNDRED AND SEVENTEENTH ACT OF THE PARLIAMENT OF
THE REPUIBLIC OF GHANA ENTITLED
THE
TIMBER RESOURCES MANAGEMENT (AMENDMENT)ACT
2002
AN
ACT to amend the Timber Resources Management Act 1997
(Act 547) to exclude from its application land with
private forest plantation; to provide for the maximum
duration, and maximum limit of area, of timber rights;
to provide for incentives and benefits applicable to
investors in forestry and wildlife and to provide for
matters related to these.
DATE
OF ASSENT: 8TH April 2002
BE IT ENACTED BY Parliament as follows:
Section
4 of Act 547 amended
1.
The Timber Resources Management Act 1997 (547) referred
to in this Act as the "principal enactment" is amended
in section 4 as follows:
(a)
the substitution for subsection (2) of the following:
"(2)
No timber rights shall be granted in respect of-
(a) land subject to alienation
holding; or
(b) land with farms
without
the written authorization of the individual, group or
owners concerned:'
(b) by the insertion after
subsection (2) of the following new subsection:
"(3)
No timber rights shall be granted in respect of-
(a) land with private forest
plantation; or
(b) land with any timber
grown or owned by any individual or group of individuals"
[ Top ]
Section
6A and 6B inserted in Act 547
2.
The principal enactment is amended by the insertion
after section 6 of the following new sections:
"Duration
and area of timber right
6A.
(1) Subject to subsection (4), timber rights shall not
be granted for a period exceeding 40 years.
(2) Subject to subsection
(4), the size of the area in respect of which timber
rights may be granted shall not exceed 125 square kilometers
in respect of any particular grant of timber rights
at a time.
(3) Subject to subsection
(4), a small, medium or large scale timber operator
as categorized in Schedule
1 to the Timber Resource Management Regulations 1998
(L.I.1649), shall not be
granted an area that exceeds 200, 300 or 500 square
kilometers area holding respectively, and accordingly
a holder with the respective maximum holding does not
qualify to be granted any further timber rights.
(4)
The Minister may on the recommendation of the
Commission and with the approval of Parliament by resolution
permit grant of timber rights that exceed the limits
specified in subsections (1), (2) and (3).
(5)
The duration and limits of timber rights specified
in subsections (1), (2) and (3) shall not apply to timber
leases granted before the coming into force of the Timber
Resources Management Act, 1997 (Act 547) and Timber
Resources Management Regulations, 1998 (L.I.1649).
[ Top ]
Disqualification
for involvement in illegal timber operations
6B.
Where a holder of timber rights who seeks to be granted
further timber rights has been convicted of or admits
to 2 illegal transactions or operation in the industry,
in the 2 years immediately preceding the application,
the application shall not be granted."
[ Top ]
Insertion
of section 14A to 14J in Act 547
3.
The principal enactment is amended by the insertion
after section 14 of the following new sections:
"Benefits and
incentives for investors
14.A.
A person who invests in any forestry or wildlife enterprise
(hereafter referred to in this Act as "an investor")
is entitled to such benefits and incentives as are applicable
to its enterprise under the Internal Revenue Act, 2000
(Act 592) and under Chapters 82, 84, 85 and 98 of the
Customs Harmonised Commodity and Tariff Code scheduled
to the Customs, Excise and Preventive Service Law, 1993
(P.N.D.C.L. 330) and any other enactment for the time
being in force.
Exemption of
non-zero-rated items
14B.
An investor who desires the benefit and incentives provided
under section 14A, but whose plant, machinery, equipment
or parts of machinery are not zero-rated under the Customs
Harmonised Commodity and Tariff Code scheduled to the
Customs Excise and Preventive Service Law, 1993 (P.N.D.C.L.
330), may submit an application for exemption of import
duties, VAT or excise duties on the plant, machinery,
equipment or parts thereof to the Commission which shall
submit it to the appropriate tax authority with its
endorsement or otherwise.
[ Top ]
Incentives
for special investment
14C.
For the purpose of promoting strategic or major investments
in the forestry and wildlife sector, the Minister may,
on the recommendation of the Commission and in consultation
with such other state agencies as the Minister may determine,
negotiate specific incentives in addition to the incentives
provided in section 14A for such period as
may be specified in the relevant timber utilization
contract.
Investment
guarantees, transfer of capital, profit and dividends
14D.
An investor shall be guaranteed unconditional transferability
through any authorised dealer bank in freely convertible
currency of
(a) dividends or net profits
attributable to the investment;
(b) payments in respect
of loan servicing where foreign loan has been obtained
(c) fees and charges in
respect of any technology transfer agreement of which
the Commission has been informed; and
(d) the remittance of proceeds,
net of all taxes and other obligations, in the event
of sales or liquidation of the operations of the investor
or any interest attributable to the investment.
[ Top ]
Guarantees
against expropriation
14E.
(1) Subject to subsections (2) and (3)
(a) the operations of an
investor shall not be nationalized or expropriated by
Government; and
(b) no person who owns,
whether wholly or in part, the capital of any forestry
or wildlife investment shall be compelled by law to
cede the interest in the capital to any other person.
(2)
There shall not be any acquisition of the operations
of an investor by the State unless the acquisition is
in the national interest or for a public purpose and
under a law which makes provision for
(a) payment of fair and
adequate compensation; and
(b) a right of access to
the High Court for the determination of the investor's
interest or right and the amount of the compensation
to which the investor is entitled.
(3)
Any compensation payable under this section shall be
paid without undue delay and authorisation for its repatriation
in convertible currency, where applicable, shall be
issued.
[ Top ]
Dispute
settlement procedures
14F.
(1) where a dispute arises between an investor and Government
all efforts shall be made through mutual discussion
to reach an amicable settlement.
(2) Any dispute between
an investor and Government which is not amicably settled
through mutual discussions may be submitted at the option
of the aggrieved party to arbitration as follows:
(a)
in accordance with the rules of procedure for
arbitration of the United Nations Commission on International
Trade Law;
(b)
in the case of a foreign investor, within the
framework of any bilateral or multilateral agreement
on investment protection to which the Government and
the country of which the investor is a national are
parties; or
(c)
in accordance with any other national or international
machinery for the settlement of investment dispute agreed
to by the parties.
(3)
Where in respect of any dispute, there is disagreement
between the investor and the Government as to the method
of dispute settlement to be adopted, the choice of the
investor shall prevail.
[ Top ]
Immigration
quota
14G
(1) An investor with a paid-up capital of US$10,000.00
but less than US$100,000,00 or its equivalent in cedis,
is entitled to an initial automatic maximum immigrant
quota of one person.
(2) An investor with a paid-up
of US$100,000,00 but less than US $500,000,00 or its
equivalent in cedis is entitled to an initial automatic
maximum immigrant quota of two persons.
(3) An investor with a paid-up
capital of US$500,000.00 or more or its equivalent in
cedis is entitled to an initial automatic maximum immigrant
quota for four persons.
(4) Except as provided in
subsections (1), (2) and (3), any application for immigrant
quota by an investor shall be submitted to the Commission.
(5) An application submitted
under this section shall be submitted by the Commission
to the Immigration Service, which shall deal with it
in consultation with the Commission.
[ Top ]
Assistance
to an investor
14H.
The Commission shall provide an investor such assistance
and guidance as the investor may require and shall act
as liaison between the investor and relevant government
departments, agencies and other public authorities.
Personal remittances
14I.
There shall be provided to expatriate personnel employed
or engaged in an investment in forestry or wildlife,
banking facilities through authorised dealer banks for
making remittances abroad except that the remittances
shall not exceed the total official wage of the expatriate
personnel.
Technology
transfer agreement
14J (1)
An investor may enter into such technology transfer
agreement as the investor considers appropriate for
its operation.
(2) A technology transfer
agreement entered into under subsection (1) shall be
registered with the Commission.
(3) A technology transfer
agreement shall be governed by any Regulations for the
time being in force relating to such agreements."
[ Top ]
Section
17 of Act 547 amended
4.
The principal enactment is amended in section 17(2)
as follows:
(a) in paragraph (b), by
the repeal of "or causes to be operated"; and
(b) by the insertion of
"or" after paragraph (e) and inserting a new paragraph
(f) as follows:
"
(f) is the owner of a vehicle or not being the owner
causes to be operated a vehicle to carry, haul, evacuate
or transport timber harvested in contravention of this
Act;"
[ Top ]
Section
18 of Act 547 amended
5.
The principal enactment is amended by the renumbering
of section 18 as "18(1)" and the insertion of a new
subsection (2) as follows
"(2)
An instrument made under subsection (1) may provide
for breach of any provision therein, a penalty of not
less than 250 penalty units and not exceeding 1000 penalty
units or imprisonment for a term not exceeding 2 years
or both; and for a fine of not less than 1000 penalty
units for a second and any subsequent offence under
the instrument."
[ Top ]
Section
20 of Act 547
6.
The principal enactment is amended in section 20 by
renumbering the section as "20(1)" and the insertion
of a new subsection (2) as follows:
"(2)
The expression "timber utilization contract" shall apply
with such modification as may be necessary, to a certificate
of purchase, a permit or any other authorisation for
timber rights approved by the Minister on the recommendation
of the Commission."
Consequential
amendment
7.
The Forestry Commission Act 1999 (Act 571) is amended
by the insertion after section 2(2) of the following
subsection:
"(3)
An application to invest in a project that involves
forest or wildlife shall be submitted to the Commission
for assessment and recommendations to the Minister."
Date
of Gazette notification: 12th April 2002.
