Manufacturing is a Qualifying Activity under the 2025 framework. Forensic auditors will verify 'substantial transformation' of chemical precursors. If the activity is deemed 'Distribution' rather than 'Manufacturing', the 0% rate is contingent on the goods being distributed in or from a Designated Zone to a Qualifying Person. For ISIC 2029, the presence of specialized chemical processing equipment and EHS (Environment, Health, and Safety) permits is the primary evidence of substance.
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Legal Reference
Article 2(1)(a) of Ministerial Decision No. 229 of 2025
Audit Red Flag
Classification of simple blending or repackaging as 'manufacturing' to bypass the stricter 'Excluded Activity' rules for third-party trading.
12 licensable activities under this classification