Private Industrial Enterprise Law (Law No. 22/90, 1990)

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PRIVATE INDUSTRIAL ENTERPRISE LAW
State Law and Order Restoration Council Law No. 22/90
(26 November 1990)

The State Law and Order Restoration Council hereby enacts the following Law:

CHAPTER I
TITLE AND DEFINITION

2.    The following expressions contained in this law shall have the meanings given hereunder:

• Industrial Enterprise means an enterprise which produces finished goods from raw materials; using any form of power in any building. This expression does not include cottage industries;
• Power means electrical power or any other kind of power generated or transmitted by mechanical devices;
• Private Industrial Enterprise means the conducting of an industrial enterprise either individually or in partnership or by forming a company. This expression does not include industrial enterprises conducted in joint venture with the Government;
• Ministry means the Ministry of No. 1 Industry;
• Minister means the Minister of the Ministry of No. 1 Industry;
• Directorate means the Directorate of Regional Industrial Co-ordination and Industrial Inspection;
• Director General means the Director General of the Directorate;
• State or Divisional Officer-in-Charge means the State or Divisional Officer-in-Charge of the Directorate;
• Supervisory Body means the body formed under this Law and which conducts supervision and inspection of private industrial enterprises;
• Entrepreneur means a person who has been granted registration to conduct a private industrial enterprise under this Law. This expression also includes the heir, legal representative and succeeding lawful organization of the entrepreneur.

CHAPTER II
BASIC PRINCIPLES

1. to enhance the higher proportion of the manufacturing value added in the gross domestic product, and to increase the production of the respective economic enterprises which are related to the industrial enterprise;
2. to acquire modern technical know-how for raising the efficiency of industrial enterprise and to establish the sale of finished goods produced by the industrial enterprise not only in the local market, but also in the market abroad;
3. to cause utilization by relying mainly on local natural resources;
4. to cause narrowing down of the gap between rural development and urban development by causing the development and improvement of industrial enterprises;
5. to cause opening up of more employment opportunities;
6. to cause avoidance of or reduction of the use of technical know-how which cause environmental pollution;
7. to cause the use of energy in the most economical manner.

CHAPTER III
REGISTRATION OF PRIVATE INDUSTRIAL ENTERPRISES

1. Any person desirous of conducting any private industrial enterprise;
2. Any person conducting any private industrial enterprises on the day this Law is enacted;

5.    In applying for registration under section 4, application shall be submitted to the respective State or Divisional Officer-in-charge in the prescribed manner.

6.    An application for registration being made under section 5, the respective State or Divisional Officer-in-charge may, after making necessary scrutiny and inspection, grant or refuse to grant registration in accordance with the prescribed manner.

7.    The Directorate shall categorize the size of private industrial enterprises in accordance with prescribed manner as follows:

1. small scale private industrial enterprise;
2. medium scale private industrial enterprise;
3. large scale private industrial enterprise.

CHAPTER IV
FORMATION OF THE PRIVATE INDUSTRIAL ENTERPRISE CO-ORDINATION BODY

CHAPTER V
SUPERVISORY BODY AND ITS DUTIES AND POWERS

11.    The duties and power of the Supervisory Body are as follows:

1. giving opinion in respect of the inspections, recommending or refusing to recommend for grant of registration, causing to be removed or to be terminated or to be closed down private industrial enterprises which are conducting on the day this Law is enacted;
2. inspection, recommending or refusing to recommend for grant of registration in respect of causes where applications are submitted for registration of new private industrial enterprises;
3. in recommending for grant of registration of private industrial enterprises, the following factors shall be taken into consideration:

1. no cause of being injurious to the health of the public residing in the vicinity of the private industrial enterprise;
2. being safe from the danger of fire;
3. no cause of being a nuisance to the environment and no cause of there being any pollution;
4. no cause of being injurious to the health of the workers of the private industrial enterprise and no likelihood also of there being any danger;
5. being also in compliance with the existing laws;

4. supervising to ensure the compliance by the entrepreneurs in the conducting of the industrial enterprises in accordance with the basic principles;
5. informing the relevant Government department to take action against the owner of any private industrial enterprise if discovered that it is not in conformity with any existing law;
6. giving opinion for the determination of industrial areas and for the granting of lease of land for the private industrial enterprises;
7. in granting lease of land in an industrial area to entrepreneurs, causing to be done so in accordance with the stipulations;
8. carrying out the duties and powers assigned by the Ministry or by the Private Industrial Enterprise Co-ordination Body.

CHAPTER VI
DUTIES AND RIGHTS OF THE ENTREPRENEUR

1. shall pay the registration tees fees for the renewal of registration and other payable duties and taxes prescribed by the Directorate;
2. shall abide by the terms and conditions of the registration certificate;
3. shall conduct the enterprise by opening an account with the relevant bank in the name of its registered enterprise;
4. shall maintain systematically and fully as prescribed by the Directorate, the statement of accounts relating to the registered private industrial enterprise and shall submit the same to the relevant Government department, organization or Supervisory Body when required to do so;
5. shall submit to the inspection of the person or inspection body assigned by the Directorate or Supervisory Body;
6. shall shift the place of enterprise, change the type of enterprise, amalgamate enterprises and split up enterprises only with the approval of the Directorate;
7. shall abide by the orders and directives issued from time to time by the Ministry and the Directorate;
8. shall also abide by the existing laws.

1. land, water, power, communication and transport etcetera required for use in his enterprise;
2. exemptions and reliefs from taxes;
3. loans for fixed capital and working capital;
4. raw materials, machinery and spare parts required locally and from abroad for his enterprise;
5. local and foreign technical know-how for enhanced production of goods and for improvement in the quality of finished goods.

1. appointing foreign experts and technicians with the approval of the Ministry;
2. carrying out change of the name of enterprise, transfer of ownership, temporary suspension or permanent closing down of the enterprise in the manner prescribed with the approval of the Directorate.

CHAPTER VII
POWERS OF THE DIRECTOR GENERAL

1. land, water, power, communication and transport etcetera required for use in his enterprise;
2. exemptions and reliefs from taxes;
3. loans for fixed capital and working capital;
4. raw materials, machinery and spare parts required locally and from abroad for his enterprise;
5. local and foreign technical know-how for enhanced production of goods and for improvement in the quality of finished goods;
6. to acquire local and foreign markets;
7. to acquire industrial areas and leased land for industrial enterprises.

18.    The Director General may, under the direction of the Minister, or on the submission of the Supervisory Body or the State or Divisional Officer-in-Charge, suspend or cancel the registration granted.

CHAPTER VIII
DUTIES AND POWERS OF THE STATE OR DIVISIONAL OFFICER-IN-CHARGE

1. scrutinizing the applications submitted for registration of private industrial enterprise and forwarding the same to the Director General together with the opinion of the Supervisory Body;
2. registering or refusing to register in accordance with the direction of the Director General;
3. inspecting at site of private industrial enterprises at the requirement of the Directorate or on the opinion of the Supervisory Body;
4. collecting registration fees and fees for renewal of registration and depositing the same at the bank;
5. co-ordinating with the relevant departments in accordance with the opinion of the Director General or the Supervisory Body, in order to acquire industrial areas; if it is an agricultural land, applying for sanction under section 39 of the Land Nationalization Act;
6. carrying out the duties and powers assigned by the Minister and the Director General.

CHAPTER IX
INVALIDATION OF REGISTRATION

1. expiration of the tenure;
2. cancellation;
3. surrender of the registration certificate by the entrepreneur;
4. the enterprise being terminated under any existing law.

CHAPTER X
APPEAL

1. who is dissatisfied with an order or decision of the Director General may file an appeal to the Minister within 30 days of the receipt of such order or decision;
2. the decision of the Minister shall be final.

CHAPTER XI
POWER OF THE MINISTER

1. granting registration;
2. if it is necessary in the interest of the State, suspending or cancelling the registration granted by the Directorate, if re-application is made, granting registration after scrutiny.

1. may determine any industrial enterprise as a private industrial enterprise;
2. shall give a decision, if a dispute arises as to whether it is a private industrial enterprise or not.

25.    The Minister may, in respect of the following matters, direct the respective State or Divisional Officer-in-charge to cause the removal of buildings, moveable and immovable property:

1. continuing to conduct a private industrial enterprise without being granted registration by a person after conviction under this law;
2. failure to comply with any condition prescribed by the Directorate by an entrepreneur who has been granted a lease of land in any industrial area.

CHAPTER XII
PROHIBITIONS

27.    An entrepreneur:

1. in distributing and selling the goods he has produced shall not sell without a trade mark;
2. shall not violate any provision of section 13;
3. shall not fail to comply with any order or decision passed by the Minister and the Director General.

CHAPTER XIII
OFFENCE AND PENALTY

1. in the case of conducting a small scale private industrial enterprise, be punished with fine which may extend from a minimum of Kyats 5,000 to a maximum of Kyats 10,000;
2. in the case of conducting a medium scale private industrial enterprise, be punished with fine which may extend from a minimum of Kyats 10,000 to a maximum of Kyats 20,000;
3. in the case of conducting a large scale private industrial enterprise, be punished with fine which may extend from a minimum of Kyats 20,000 to a maximum of Kyats 50,000.

1. in the case of a small scale private industrial enterprise, at the rate of Kyats 100;
2. in the case of a medium scale private industrial enterprise, at the rate of Kyats 150;
3. in the case of a large scale private industrial enterprise, at the rate of Kyats 200.

1. warning;
2. causing damages to be paid;
3. suspension of registration subject to a periodical limit or cancellation of registration.

CHAPTER XIV
MISCELLANEOUS

32.    If the respective entrepreneur fails to pay the damages imposed under section 30, the respective State or Divisional Officer-in-Charge shall recover such damages as if it were an arrear of land revenue.

33.    No suit or prosecution shall lie against any member of the Supervisory Body or any public servant for anything which is in good faith done under this Law.

34.    For the purpose of carrying out the provisions of this Law, the Ministry:

1. may, with the approval of the Government, issue such procedures as may be necessary;
2. may issue such orders and directives as may be necessary.

(signed) Saw Maung
Senior General
Chairman, The State Law and Order Restoration Council

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last updated 1st August, 1998
Asia-Pacific Centre for Environmental Law
Faculty of Law
National University of Singapore
© 1998