EXPORT PROCESSING ZONE

A free trade zone (FTZ) or export processing zone (EPZ) is an area of a country where some normal trade barriers such as tariffs and quotas are eliminated and bureaucratic requirements are lowered in hopes of attracting new business and foreign investments. It is a region where a group of countries has agreed to reduce or eliminate trade barriers. Free trade zones can be defined as labor intensive manufacturing centers that involve the import of raw materials or components and the export of factory products.

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enhance foreign exchange earnings. develop export-oriented industries. generate employment opportunities. Stimulate the area's economy.

To

To

 Free

trade zones in Latin America date back to the early decades of the 20th century. The first free trade regulations in this region were enacted in Argentina and Uruguay in the 1920s. The Latin American Free Trade Association (LAFTA) was created in the 1960 Treaty of Montevideo by Argentina, Brazil, Chile, Mexico, Paraguay, Peru, and Uruguay.

Access to imported inputs at world(duty-free) prices. Allowed exporters to look beyond poor or limited local inputs. > Could utilize low labor cost for assembly operations based on superior imported inputs. Better industrial park conditions. Tax breaks Exemption from Central Sales Tax. Exemption from Service Tax. Single window clearance for Central and State level approvals. Duty Deferral Duty Elimination Weekly Entry procedure

1970s only a handful of countries with EPZs. By 1996, 73 countries, and over 500 zones. By 2002, 116 countries, and over 3000 zones 43 million people employed. Many variants- single industry zone, special economy zone, special factory zone and more. Early zones were publicly owned and run. Now more and more are privately-run.
In

Jebel Ali Free Zone, Dubai Aegean Free Zone, Izmir Turkey Aras Free Zone Bahrain Logistics Zone, Kingdom of Bahrain Bayan Lepas Free Trade Zone, Penang, Malaysia Batam Free Trade Zone Cavite Export Processing Zone, Rosario, Cavite City, Philippines Zona Franca de Manaus, Brazil Freeport, Grand Bahama Inspira Pharma and Renewable Energy Park, Aurangabad, Maharashtra, India Kulim Hi-Tech Park, Kedah, Malaysia Maquiladoras, Mexico Port Klang Free Zone, Klang, Selangor, Malaysia Pacfico Pasir Gudang Free Trade Zone, Johor, Malaysia Sricity Multi product SEZ, part of Sricity which is a developing satellite city in the epicentre of Andhra Pradesh & Tamil Nadu. Walvis Bay Export Processing Zone, Namibia CentrePort Canada Winnipeg Slobodna Zona Pirot - Srbija / Free Zone Pirot - Serbia Aden

- SEEPZ Special Economic Zone - Kandla Special Economic Zone - Cochin Special Economic Zone - Madras Special Economic Zone - Visakhapatnam SEZ - Falta Special Economic Zone - Noida Export Processing Zone

 Land

acquisition loss

Revenue Loss

of agricultural land of land for real estate growth

Misuse Uneven

Inequities