In INDIA FTZs List

Falta Export Processing Zone Madras Export Processing Zone Kandla Free Trade Zone Santa Cruz Electronics Export Processing Zone Cochin Export Processing Zone Visakhapatnam Export Processing Zone Surat Special Economic Zone

What it is?
Foreign Trade Zones (FTZs) provide special customs procedures to plants engaged in international trade-related activities. Duty-free treatment is accorded items that are processed in FTZs and then re exported, and duty payment is deferred on items until they are brought out of the FTZ for sale in the localmarket. This helps to offset customs advantages available to overseas producers who compete with domestic industry.

FTZ- catagorisation
FTZs are divided into general-purpose zones and subzones. State or local governments, port authorities, nonprofit organizations, or economic development agencies typically sponsor general-purpose zones.

General-purpose zones involve public facilities that can be used by more than one firm. Subzones, on the other hand, are sponsored by generalpurpose zones, but typically involve a single firm's site which is used for more extensive manufacturing/processing or warehousing/distribution that cannot easily be accomplished in a general-purpose zone.

Foreign trade deploying domestic market?

FTZ activity must not conflict with trade policy or harm domestic industry or other domestic plants outside of zones. The FTZ Board requires that zone manufacturing activity result in a significant public benefit and a net positive economic effect. In addition,Customs Service supervises all zone activity and ensures that all customs and FTZ Board requirements are observed.

FTZ- in globe and INDIA

The first example of EPZ Shannon Export Processing Zone designed to liberalize trade/FDI debuted in Ireland during 1956. First FTZ in India was set up at Kandla in 1965. Then came the establishment of EPZs at SEEPZ

FTZ-Use for a country

Most of the countries in the world have ridden SEZ/FTS vehicle in attracting FDI, increasingly international trade and attaining over all economic development . Most of them have succeeded while there are also failures. Since 1950's most of the countries in the world have adopted export zones for example.

World wide FTZs

Distribution of SEZs on Global Scale Country No. of Zones North America 320 Asia 225 Europe 81 Caribean 51 Africa 47 South America 41 Central America 41 Middle East 39 Pacific 2 Total 847 Source : WEPZA (World Export Processing Zone Association)

SEZ- factors affecting

Vision Size Factor

Location and connectivity

Industry focus Infrastructure facilities

 Private participation in zone operation and maintenance Policy framework Fiscal Incentives Zone Administration Labour laws

 Forward and Backward linkages. Operational ease DTA Sales