Manufacture of knitted and crocheted apparel

Qualifying · 0% eligible

Forensic Analysis

DZ requiredSubstance: HIGHAI-derived

Manufacturing is a Qualifying Activity under the Free Zone regime. Forensic audit focuses on the 'Substantial Transformation' test; the entity must prove that raw materials (yarn/thread) are physically converted into finished apparel within the Free Zone premises using its own or leased assets and employees.

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Legal Reference

Article 2(1)(a) of Ministerial Decision No. 229 of 2025

Audit Red Flag

Outsourcing the core 'knitting' or 'crocheting' process to mainland sub-contractors while claiming 0% tax on the final sale.

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