1. On the joint proposal of the Minister for the Economy and Finance and the Minister(s) concerned, after consultation with the local authorities and public establishments concerned, the free zone is established by a decree issued by the Council of State, which determines the operating procedures and boundaries of the zone and specifies the operations that will be authorised therein.
2. The decree establishing the free zone grants it to one of the local authorities or public establishments concerned. If the free zone is established in a port, the local authority or public institution holding the concession for the free zone is the local authority or public institution holding the concession for the port facilities or, if the port is autonomous, the autonomous port.