Section 3: Termination Of Lease And License

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Section 3: Termination Of Lease And License

PKFZ Rules & Regulation
Section 3: 
Termination Of Lease And License

3.3.0

Termination Of Lease And License

3.3.1
General

All outstanding administrative issues, including financial, shall be settled in liaison with the Free Zone Management.

In the event of lease or license termination, it is the responsibility of the Licensee to ensure the premises are fully vacated, i.e., all furnishings and equipment are removed and that the premises are restored to its original condition by the termination date.

Also, any waste material / contaminated soil should be disposed of in accordance with Free Zone Regulations 1991.

Should the PKFZ Management terminate a Free Zone lease, then a written notice shall be submitted by the PKFZ Management so they can conclude the Termination of the concerned Lessee’s license.

3.3.2
Abandoned Goods
Under the Free Zone regulation 1991, if the Licensee abandons any goods on the premises for more than 4 months, then the Free Zone Management shall issue a Notice to the Licensee’s officially-recognised address of the intention to treat such goods as “abandoned”.

A specified date for clearance of the premises will be given in the notification, which shall take into consideration the nature of the goods (e.g. refrigerated, perishable) and hence urgency of removal. If the abandoned goods have not been removed by that date, the PKFZ Management will act to remove them without further reference to the Licensee.

Under Free Zone Regulations 1991:

Section 16
(1) “No operator shall, unless he is exempted under these Regulations, destroy any goods in any free zone except-

  1. with the written approval, and
  2. in the presence, of a proper officer of the PKFZ Management and Engineering Department

(2) The approval under subregulation (1) may be obtained by applying in writing to a proper officer of the Authority stating the type of goods to be destroyed, its quantities and the date it is proposed to be destroyed.

(3) Where goods are destroyed in accordance with these Regulations the proper officer of the PKFZ Management present shall issue a certificate and witnessed by the owner of the goods or his representative certifying that the goods have been destroyed; and the certificate shall be kept as a record by the operator.

The disposal of goods can be made in ways:

  1. Disposal
  2. Public Auction
3.3.3

a) Disposal
The disposal activity would be managed by the PKFZ Management and supervised by the Customs Officers and other related government authority officers. The disposal certificate would be issued by the PKFZ Management as evidence of completion of the disposal process.

The removal of the abandoned cargo shall be carried out by the appointed services provider that is recommended by the PKFZ Management.

All costs incurred during the disposal activities would be raised up by the PKFZ Management and will constitute a claim against the Licensee.

Any costs incurred by the PKFZ Management in doing so will constitute a claim against the Licensee.

The Free Zone Management shall, at its discretion, auction the abandoned goods to expedite clearance of the facility and / or to recover any outstanding dues.

3.3.4

b) Public Auction

When goods brought into the Free Zone –

  1. remain in the zone and has not been declared; or
  2. has been abandoned

after a period of 4 months from the date the goods are brought into the Free Zone, the PKFZ Management may dispose of the goods by public auction.

Under the Free Zone Regulation 1991, Rule 34, the PKFZ Management will give a notice in writing of not less than 30 days before the date of the proposed disposal to the owner; or publish a notice in the Gazette 30 clear days before the date of the disposal, if the owner and the address of the owner of the goods is unknown.

Section 34 (3):

“The PKFZ Management may without a notice to the owner or in the Gazette-

  1. Dispose of any perishable goods at any time if it is not declared and collected by the owner forthwith;
  2. dispose of any inflammable goods if it is not declared and collected by the owner after 14 days of its arrival at the Free Zone.”

Section 34 (4):

Any proceeds of public sale carried out pursuant to these regulations shall be paid into the Federal Consolidated Fund less any expenses incurred by the PKFZ Management in carrying out the sale.