Text consolidated by Valsts valodas centrs (State
Language Centre) with amending laws of:
27 July 2001 [shall come
into force on 1 January 2002];
22 May 2003 [shall come into force on 20 June
2003];
14 October 2010 [shall come into force on 10 November
2010];
5 May 2022 [shall come into force on 10 May 2022].
If a whole or part of a section has been amended, the
date of the amending law appears in square brackets at
the end of the section. If a whole section, paragraph or
clause has been deleted, the date of the deletion appears
in square brackets beside the deleted section, paragraph
or clause.
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The Saeima1 has adopted and
the President has proclaimed the following law:
The Free Port of Riga Law
Chapter I
General Provisions
Section 1. Terms Used in the Law
The following terms are used in this Law:
1) territory of the Free Port - a part of the territory
of the Republic of Latvia, corresponding to the Free Port of Riga
borders determined by the Cabinet;
2) [14 October 2010];
3) licensed capital company - a capital company, which
has entered into a contract with the Free Port Authority of Riga
(hereinafter - Port Authority) regarding licensed commercial
activity in the territory of the Free Port of Riga and has
obtained the permit of the Port Authority for such activity;
4) free zone regime - a set of tax relief and special
customs control measures, which are to be applied to capital
companies whose territories have obtained the status of free
zones in the Free Port of Riga, as well as to the Port
Authority;
5) free zone - a demarcated part of the territory of
the Free Port where imported goods in respect of the application
of customs duties and trade policy measures, are treated as
equivalent to goods which are outside the customs territory of
the Republic of Latvia;
6) territory of a licensed capital company - a
territory, wherein land is used by a licensed capital company on
the basis of property rights, a lease agreement or other legal
basis;
7) port clients - consignees, consignors, their
authorised representatives - forwarding agents, ship-owners,
their authorised representatives - shipping agents and other
persons, who on a legal basis use the services of the Port
Authority and licensed capital companies but who do not have
their own territory in the Free Port.
[14 October 2010]
Section 2. Purpose of the Law
This Law determines the principles of operation and management
procedures for the Free Port of Riga (hereinafter - the Free
Port) in order to promote the participation of Latvia in
international trade, attract investments, develop manufacturing
and services, as well as create new jobs.
Section 3. Basic Provisions
Regarding Commercial Activity Conducted at the Free Port
(1) Commercial activity in the territory of the Free Port may
be conducted by licensed capital companies, as well as commercial
companies which have entered into a contract with the Port
Authority regarding activity in the territory of the Free Port in
accordance with Section 7, Paragraph three, Clause 7 of the Law
on Ports, and in conformity with the conditions of Section 10,
Paragraph three of this Law.
(2) [14 October 2010]
(3) The importation of goods in the territory of a free zone
of a licensed capital company existing in the territory of the
Free Port and the exportation therefrom may only be carried out
through pass points in accordance with the procedures laid down
in laws and regulations.
[14 October 2010]
Section 4. Legal Relations in the
Territory of the Free Port Pertaining to Land
(1) State and local government land within the territory of
the Free Port may not be sold, gifted or otherwise alienated,
except for the cases specified in the Law on Ports or investment
in the equity capital of a capital company established for the
management of the Free Port.
(2) The water area (aquatorium) of the territory of the Free
Port is the property of the State.
(3) The land in the Free Port owned by a natural person or
legal person may be sold, gifted, exchanged, or otherwise
alienated in accordance with the procedures laid down in the Law
on Ports.
(4) With this Law, a personal servitude on the land owned by
natural persons and legal persons which, pursuant to this Law, is
occupied by the Free Port, is established for the benefit of the
Port Authority. The Port Authority has the right to use the land
owned by natural persons and legal persons in its territory for
the needs of the port, as well as to lease it to merchants, which
operate in the territory of the Free Port. The land leased by the
Port Authority may be assigned to sublease only with the
permission of the Port Authority.
(5) The user of the servitude may construct such buildings and
structures as are necessary for the operation of the port on the
land in its territory, as well as allow the construction of such
by merchants, to which the land has been leased out, providing in
the contract for action with such buildings and structures in the
case of termination of the land lease contract.
(6) Upon the cessation of servitude rights, the owner of the
land may not request that the land be returned to him or her
until he or she has paid compensation for the buildings and
structures.
(7) The Port Authority shall pay the taxes and cover the
expenses relating to the maintenance of the land referred to in
Paragraph four of this Section, whereas the other burdens resting
upon the land shall be attached to and fulfilled by the owner of
the land.
(8) The user of the land shall pay compensation for the
servitude to its owner in accordance with their contract,
however, such compensation shall not exceed five per cent
annually of the cadastral value of the land.
(9) The Port Authority has the right to unilaterally enter the
servitude rights established by this Law into the Land
Register.
[22 May 2003; 14 October 2010; 5 May 2022]
Chapter II
Management Organisation of the Free Port
Section 5. Management of the Free
Port
(1) Management of the Free Port shall be carried out by the
Port Authority the status of which is determined in the Law on
Ports. The competence of the Port Authority is determined by this
Law, the Law on Ports, the by-laws of the Free Port Authority of
Riga and the Free Port of Riga Regulations which govern the
internal regime of the Free Port.
It shall enjoy the same customs duty relief as licensed
capital companies.
[14 October 2010]
Section 6. Board of the Port
(1) The Board of the Port shall be the highest decision-making
institution of the Port Authority. Its members shall be appointed
to and released from their positions in accordance with the
procedures set out in Section 8 of the Law on Ports.
(2) The administrative staff of the Port Authority shall be
managed by a Chief Executive Officer who is appointed to and
released from his or her position by the Board of the Port after
co-ordination with the Minister for Transport.
Chapter III
Customs Regime in the Free Port
Section 7. Importation of Goods into
Free Zones of a Licensed Capital Company and Exportation from
Them
Importation of goods into the territory of the free port of a
licensed capital company within the territory of the Free Port
and exportation from them shall take place in accordance with the
requirements of customs legal acts of the European Union
regarding importation of goods into the territory of free zones
and exportation from them.
[14 October 2010]
Section 8. Registration of Goods in
the Free Port
Licensed capital companies shall ensure the registration of
the goods imported and produced within their territory and of the
goods exported from it.
[14 October 2010]
Section 9. Natural Persons Subject
to the Control of Customs
Natural persons upon crossing the border of the territory of a
free zone are subject to customs control.
[14 October 2010]
Chapter IV
Commercial Activity in the Free Port
[14 October 2010]
Section 10. Regulations Regarding
Commercial Activities Conducted in the Free Port
(1) The loading, supply, storage, processing of goods
(freight) and other services, and the production of goods under a
free zone regime shall be carried out by capital companies, which
have been registered in the Republic of Latvia, have entered into
a contract regarding licensed commercial activity under a free
zone regime and have obtained a permit of the Port Authority for
carrying out such activities.
(2) The Port Authority shall establish a register of licensed
capital companies.
(3) Merchants, which do not have the status of a licensed
capital company, may, within the territory of the Free Port,
conduct commercial activity without the reliefs specified for
licensed capital companies and subject to the control of the Port
Authority within the scope of the competence thereof. The
abovementioned merchants and licensed capital companies, which do
not apply the free zone regime, do not have the right to conduct
commercial activity in the territories of free zones, except the
provision of services to a licensed capital company, which
applies the free zone regime, or to the Port Authority.
(4) [22 May 2003]
[27 July 2001; 22 May 2003; 14 October 2010]
Section 11. Conditions for the
Application of the Free Port Regime
(1) A free zone regime shall apply only to such capital
companies, the territory of which in the Free Port is demarcated
by one or more adequately organised pass points and by security
guards who ensure that the movement of goods and persons to and
from the territory of the licensed company complies with customs
requirements. Each licensed capital company shall ensure the
security of its territory.
(2) Licensed capital companies may not conduct commercial
activity outside the territory of the Free Port, except the
activities indicated in Paragraph three of this Section.
(3) The following shall not be considered as commercial
activity outside the territory of a licensed capital company:
1) the location of the administrative body or a representation
of the capital company outside the demarcated territory;
2) the negotiation of transactions and contracting outside the
demarcated territory;
3) other activities which do not have goods-money transaction
characteristics;
4) the transit of goods through the demarcated territory.
[14 October 2010]
Section 12. Procedures for Entering
into a Contract Regarding Licensed Commercial Activity in the
Free Port and for Issuing Permits
(1) A capital company, which has already been established or
will be established in the future (the applicant is the founder)
in the Free Port, is entitled to apply for the entering into a
contract and for the obtaining of a permit, if:
1) the profile of activities and the development prospects of
the capital company conform to the development programme of the
Free Port, which has been approved by the Board of the Port;
2) the founders, shareholders, members of the board of
directors and members of the council of the capital company (if a
council has been established in the capital company) comply with
the following conditions:
a) good reputation,
b) stable financial situation,
c) experience in the field of commercial activity (such
information need not be requested from local governments and the
State as the founders and shareholders).
(2) Contracts regarding commercial activity in the Free Port
may be entered into regarding specific types of activity.
Contracts may be entered into regarding several types of
activity.
(3) A capital company, which applies for entering into a
contract and receipt of a permit, shall submit the following
documents to the Board of the Port for examination:
1) an application;
2) [5 May 2022];
3) a copy of the articles of association, certified by the
capital company;
4) the annual accounts for the last two years approved by
sworn auditors (auditors) (or - with the consent of the Board of
the Port - a true copy of abridged accounts);
5) an operational programme, including an investment
programme;
6) a statement issued by the State Revenue Service regarding
conformity of the territory of the capital company for
introduction of the free zone regime, if the capital company
wishes to enter into a contract regarding licensed commercial
activity under free zone regime.
(4) The Board of the Port shall take a decision to enter into
a contract with an applicant within three months after receipt of
the documents referred to in Paragraph three of this Section. The
application of an applicant shall be rejected, if the applicant
does not comply with the conditions referred to in Paragraph one
of this Section.
(5) The Board of the Port may take a decision to enter into a
contract with a capital company, which has not been established
yet, on the basis of draft memorandum of establishment and
operational programme, concurrently issuing a temporary permit.
The decision to enter into a contract shall be in effect for six
months. If, during this time period, the capital company is not
founded, the decision shall cease to be in effect.
(6) A contract regarding commercial activity shall be entered
into for a term that is not less than five years.
(7) A contract on licensed commercial activity is the grounds
for issuing a permit for conducting commercial activity in the
Free Port. The permit shall be issued for the term of the
contract after the readiness of the capital company for
operations in the Free Port has been verified. The Port Authority
shall ensure the registration of permits.
[14 October 2010; 5 May 2022]
Section 13. Procedures for
Terminating a Contract Regarding Commercial Activity in the Free
Port before the Expiration of its Term and for Cancelling a
Permit
(1) A contract regarding licensed commercial activity in the
Free Port may be terminated before the expiration of its term by
a decision of the Board of the Port, if it is determined that the
licensed capital company violates laws, other laws and
regulations or the contract that has been entered into.
(2) Concurrently with a decision on the early termination of a
contract, the Board of the Port shall take a decision to cancel
the permit and shall specify the date by which the decision is to
be executed. The term of execution of the abovementioned
decisions may not be less than 60 days. The Free Port Authority
shall, within five working days, notify the State Revenue Service
regarding the decisions taken by the Board of the Port to cancel
the permit.
(3) A capital company, for which a permit for licensed
commercial activity in the Free Port has been cancelled, is
entitled to conduct commercial activity according to general
provisions, unless due to the nature of violations it is
prohibited from commercial activity in accordance with the
procedures laid down in law.
(4) The Board of the Port shall invite the capital company to
provide a written explanation prior to taking of the decisions
referred to in Paragraphs one and two of this Section. The time
period for submitting the explanation, which may not be less than
two weeks, shall be indicated in the invitation. Non-submission
of an explanation shall not be an obstacle for taking of the
decision.
[14 October 2010]
Section 14. Procedures for Appealing
the Decisions Taken by the Board of the Port to Issue a Permit,
to Cancel a Permit, to Enter into a Contract, and on Early
Termination of a Contract and for Settling Disputes
(1) The decisions taken by the Board of the Port in accordance
with Sections 12 and 13 of the Law to issue a permit, to cancel a
permit, to enter into a contract and on early termination of a
contract for the operation of a capital company under free zone
regime may be appealed to a court in accordance with the
procedures laid down in the Administrative Procedure Law.
(2) Appeal of the decisions taken by the Board of the Port
shall not suspend execution of such decisions.
(3) Disputes on entering into a contract with commercial
companies regarding operation in the territory of the Free Port
in accordance with Section 7, Paragraph three, Clause 7 of the
Law on Ports and on early termination of such contract shall be
examined in accordance with the procedures laid down in the Civil
Procedure Law.
[14 October 2010]
Section 15. Duty-free Shops
[27 July 2001]
Section 16. Issue of a Certificate
of Origin of Goods
The Port Authority, in accordance with the procedures
stipulated by the Cabinet, is entitled to issue a certificate of
general form (non-preferential), which certifies the manufacture
or processing of goods in a licensed capital company, as well as
a certificate, which certifies the fact that the goods
transported through the territory of a licensed capital company
located in the Free Port have not been processed in this
territory.
[14 October 2010]
Section 17. Payment of Tax
Regime
[27 July 2001]
Section 18. Liquidation of the Free
Port
The Saeima shall decide on the liquidation of the Free
Port by adopting a special law.
Transitional Provisions
1. With the coming into force of this Law, the Riga Trade Free
Port Law (Latvijas Republikas Saeimas un Ministru Kabineta
Ziņotājs, 1996, No. 23) is repealed.
2. To ensure the operation of this Law in all the territory of
the Free Port and the continuity of operations of the
undertakings and companies located in the territory of the Riga
Trade Free Port, to settle the financial relations between the
Port Authority, valsts akciju sabiedrība "Rīgas tirdzniecības
osta" [State joint-stock company Riga Trade Port], and the
subjects of economic activities of the Riga Trade Free Port, and
also to adopt decisions on property and other questions, the
Cabinet shall, within one month from the date of coming into
force of this Law:
1) establish and approve the reorganisation commission of the
State joint-stock company Riga Trade Port;
2) determine the procedures by which the State joint-stock
company Riga Trade Port shall transfer to the Port Authority
berths, underground and surface communications systems, and other
property objects in its possession, including immovable property
together with all the encumbrances associated with it, as well as
the credit liabilities guaranteed by the State and other rights
and obligations;
3) determine the status of further operation of the State
joint-stock company Riga Trade Port.
3. The Port Authority shall, within six months from the date
of coming into force of this Law, take over the administration of
the Riga Trade Free Port and berths, surface and underground
communications systems, and other property objects in its
possession, including immovable property together with all the
encumbrances associated with it, as well as the credit
liabilities guaranteed by the State and other rights and
obligations, and renew contracts with licensed capital companies
which operate in the Riga Trade Free Port.
[14 October 2010]
4. [27 July 2001]
The Law has been adopted by the Saeima on 9 March
2000.
President V. Vīķe-Freiberga
Rīga, 28 March 2000
1 The Parliament of the Republic of
Latvia
Translation © 2023 Valsts valodas centrs (State
Language Centre)