However, an Export Processing Zone is an industrial area that constitutes an enclave withregard to customs’ tariffs and the commercial code in force in the host country.
Economic Rationale for a better export performance of the zones:
EPZs are special enclaves, separated from the Domestic Tariff Area (DTA) by fiscal barriers and are intended to provide an internationally competitive duty free environmentfor export production at low cost. EPZs are benefited usually from the following:
Modern and efficient infrastructure
General fiscal and non fiscal concessions to firms
Better governance due to single window facilities to ensure corruption and red tapefree business environment.
3. What BEPZA is
BEPZA is the acronym for the Bangladesh Export Processing Zone Authority.Bangladesh Export Processing Zones Authority (BEPZA) was set up by an Act of Parliament in 1980 to attract foreign capital and technical know-how and thereby boostexports through the establishment of export-oriented industries in special zones withspecial facilities.Earlier in 1980, the Foreign Private Investment (Promotion and Protection) Act was passed by parliament for promotion and protection of foreign investments. As per theseacts, BEPZA, an autonomous statutory body, came into being in 1983. It was entrustedwith the responsibilities of setting up and operating EPZs in the country.
4. Objectives of BEPZA
The objective of setting up EPZs was to provide investors with a congenial investmentclimate free from excessive procedural complications. The main objectives are given below:
Promotion of foreign (FDI) & local investment
Diversifications of export
Development of backward & forward linkages
Generation of employment
A Case Study on the Export Processing Zones (EPZs) of Bangladesh