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Hawksbill Creek Agreement and Licensing To Do Business in Freeport/Lucaya, GBI

The Hawksbill Creek Agreement, which is basically a contract between The Bahamas' Government and the Grand Bahama Port Authority Limited, granted 50,000 acres of unused Crown Land, to be developed as an international free port, to the Grand Bahama Port Authority. The Port Authority later obtained additional land from the Crown and from private sources, making a total holding of about 149,000 acres or 233 square miles.

To encourage development of this land, The Bahamas Government also granted certain concessions to the Port Authority and its licensees, applying only to the Freeport/Lucaya area, not to all of Grand Bahama, making Freeport a commercial/industrial free port. Principal concessions were:

1. Freedom from taxation—There is a contractual agreement that until the year 2054, there would be no corporate profit taxes or levies on capital and no:

  1. income taxes
  2. personal income taxes
  3. inheritance taxes
  4. capital gains taxes
  5. excise taxes
  6. export taxes
  7. and no realty taxes until the year 2015

2. Freedom from Customs duties—At least until August, 2054 no excise or import duties will be levied on equipment or materials used by licensed businesses in the operations of their businesses.

The "free Port area" covers about one-third of Grand Bahama Island, and should be checked with a map by drivers of bonded cars which cannot be driven outside the area without incurring penalties, e.g., Eight Mile Rock is outside the area.

Further information on Freeport customs regulations can be found in the Guide to Customs Duties Exemptions and Procedures in Freeport, Grand Bahama Island, under the Hawksbill Creek Agreement, published jointly by the Ministry of Finance and The Grand Bahama Port Authority.

There are U.S. Customs and Immigration facilities for pre-clearance at Freeport International Airport, which eliminates long waits in U.S. mainland ports.

GETTING A GBPA LICENSE

Becoming a licensee of The Grand Bahama Port Authority is simple. Go into the Application Department of the GBPA Licensing Department in The GBPA Building at Pioneers Way and East Mall, Freeport. Explain what you hope to do as a business. You probably will be given a specimen copy of the GBPA License. At this time you should be ready to provide details of the business and bank and personal references. Fill in the application form and return it. The GBPA Licensing Board, which meets bi-monthly will review the application and notify you of its findings.

A letter of approval, however, is not an actual license. To be granted a license, you will need to notify the GBPA within 21 days of your intention; show evidence of an approved premises (office or place of business in the Port area) from which you intend to do business, an address, a phone number, a P.O. Box, and pay your first year's licensing fee.

If other special Bahamian licenses are needed, the GBPA must provide a letter addressed to the Department of Local Government, Licensing Authority, Freeport, giving consent to the suitability of the space for the proposed business. The licensee should then prepare the premises for inspection and contact the various Governmental Departments: Works, Environmental Services and Police to obtain details and arrange a date for inspection.

It is a strict condition that the licensed business must be activated within 90 days of acceptance (or extended by the GBPA). Otherwise the offer and fees paid may be forfeited. (Extensions are, however, granted with reasonable explanations.)