Considering the importance of e-business for our economy, on February 1st 2001, the Government of the Netherlands Antilles approved the proposed amendments to the free zone law allowing e-commerce activities into these areas. (National Ordinance Economic Zone no. 18, 2001)
In other words, as of this date it is not necessary anymore for goods to be physically present within the zone as required under the former free zone law.
Furthermore, the name "Free Zone" was changed into "Economic Zone" (E-Zone). In other words, the trading of goods need not be physically stored in the E-zone. This opens an opportunity for e-commerce.

Currently there are 8 E-zones established on the island:

1. E-Zone Koningsplein
2. Airport E-Zone
3. Airside Office Park
4. E-Commerce Park
5. E-Powerhouse
6. E-Trading House
7. New Haven E-Zone
8. E-zone

Requirements

To establish in an E-Zone area the company must comply with criteria established by the department of Economic Affairs of Curaçao, which issues the E-Zone license. Here fore the company must contact the managing company of the E-Zone. They provide professional support to parties interested in establishing in one of these parks and submit the application for the E-Zone license.

Incentives

The tax facilities offered to E-Zone companies in the E-Zones in Curaçao are:

• 0% import, export and excise duties;
• 2% profit tax on export profits;
• 0% sales tax;
• 0% land and property taxes.

Restrictions

Only at the Airport Economic Zone and the Harbor Economic Zone it is permitted to store goods and/ or provide e-commerce services.

At the other E-Zones only service companies are allowed.

E-Zone Koningsplein

The E-Zone Koningsplein is a fenced-in area of 57 acres. Presently, almost 100 merchants occupy a total floor space of close to one million square feet (91,000 square meters). The majority of companies established in the E-Zone Koningsplein are trading companies that distribute products from the United States, Europe and Asia to the Caribbean and Latin America. Clothing, textile products, cosmetics, shoes and other consumer goods are the items most frequently sold through the zone, though there is a growing business in higher value products, such as pharmaceuticals and industrial products. Besides trading companies, there are also distribution companies offering services to third parties, such as warehousing, distribution, invoicing, etc.

The E-Zone Koningsplein is a fully serviced and secured area, with the following facilities on the premises:

• Customs clearance office at the main gate.
• Banking facilities.
• All units have standard water-, electricity-, and telecommunication connections.
• 24-hour security service.
• Daily garbage collection.

Incentives

• 0% import duties;
• 2% profit tax on export profits;
• No land and property taxes;
• No turnover tax

To rent a space in the E-Zone Koningpslein an application must be submitted to the Curaçao Industrial and International Trade Development Company (CURINDE N.V.).

The requirements for a successful application are:

• A minimum of 75% of the annual turnover must be obtained from export. 25% of total sales can be sold to the local market. On these sales normal import duties and profit tax rates are applicable.
• A minimum of one job created per 170 square meters of space occupied.
• Submit an application form, together with two bank- and two commercial references.

The application is processed within 48 hours after which a quotation is submitted. Once the quotation is accepted, the next steps are:

• Establish a limited liability company under local law, which is dedicated exclusively to the economic zone business.
• Business/director's license.
• Work/residence permit.
• Economic Zone License.

The types of businesses, which are currently operating in this area, are:

• Wholesalers of consumer products targeting the Caribbean. The product types include garments, apparel, textiles, cosmetics, perfumes, and shoes.
• Foreign manufacturers and trading companies that target regional distribution and service centers for the southern Caribbean Basin and South and Central America.

Aiport E-Zone

The Airport E-Zone is located adjacent to the International Airport Hato, 8 miles (13 kilometers) from the seaport and 7 miles (11 kilometers) from town. The first phase of the Airpot E-Zone covers an area of 30 acres (12 hectares) with the construction of 400,000 square feet (40,000 square meters) of buildings. The total project (phase 1 and 2) will cover an area of 103 acres (42 hectares). The E-Zone Hato is especially advantageous for companies that export goods by air.

The E-Zone is a fully serviced and secured area, with the following facilities on the premises:

• Customs clearance office at the main gate.
• State-of-the-art digital telecommunication system.
• Fiber optic cable infrastructure.
• Connected to the local fiber optic cable network.
• Units with water-, electricity-, and telecommunication connections.
• Plots for custom build buildings.
• 7 x 24 hour security service. Daily garbage collection.
• Adjacent to the Curaçao international airport

The three main types of activities that are targeted for the Airport E-zone are:

• 1. Logistics Service Providers: Service firms that provide logistical services, such as order taking, invoicing, inventory management, storage, repackaging and shipping.
• 2. Vendor Trade Mart: Wholesalers/distributors of brand name goods to retailers and wholesalers in the region.
• 3. Regional Distribution Centers: Curacao's strategic location in the southern Caribbean, its excellent infrastructure, its secure and stable political and economic environment, and its well developed international financial services make it a profitable location for companies to locate a regional distribution center where they can deliver goods quickly and safely to their customers in the region, provide sales, marketing and technical support to their customers, customize their products for the Latin American market, and train regional staff and sales agents.
• 4. Electronic-commerce: other forms of service aimed at countries abroad, including new trade activities that can be performed with or on behalf of electronic communication and information opportunities.

The same incentives and conditions that apply to the E-Zone Koningsplein apply to the Airport E-Zone. The availability of units are:

• Offices: starting from 500 square feet (46 square meters);
• Showrooms: starting from 1,200 square feet (120 square meters);
• Warehouses: starting from 2,300 square feet (230 square meters).
• Plots: there are plots available of various sizes for companies that want to construct their own building.
• All units are rented based on a one year (extendible) rental agreement.

For additional information regarding the E-Zone Koningsplein and the Airport E-Zone, please contact:

Curinde N.V.
Emancipatie Blvd. #7
Curaçao, Netherlands Antilles
Phone: (599-9) - 737 60 00
Fax : (599-9) - 737 13 36
E-mail: info@curinde.com
Homepage: www.curinde.com