Some of the first free trade zones allowed imports and exports free from custom formalities so that goods could be reexported quickly. The global trade and investment context from which. Export processing zones epzs are designated parts of kenya that are aimed at promoting and facilitating export oriented investments and to develop an enabling environment for such investments. Export processing zones act 9 of 1995 gg 1069 brought into force on. The bounded zones logistics parks, the export processing zones and industrial parks4 and investment zones 5 of. Implications for trade and industrialization policies by united nations. Pdf on nov 1, 2015, patrick neveling and others published free trade zones, export processing zones, special economic zones and global imperial formations 200 bce to 2015 ce find, read and. Pdf combining export processing zones and regional free. Thus, the nature of the epz lifecycle, like the legacy of importsubstituting industrialisation, is in no small measure a function of market size.
An exportprocessing zone epz is a specific type of ftz usually set up in developing countries by their governments to promote industrial and commercial exports. Pdf on nov 1, 2015, patrick neveling and others published free trade zones, export processing zones, special economic zones and. Epzs take a variety of names and forms in different countries including free trade zones, special economic zones sezs, industrial development zones idzs, bonded warehouses, free. Wepza is an association of leading practitioners, government officials, consultants, and academics engaged in evaluating, developing, promoting, and improving special economic zones sezs, free ports, free zones and export processing zones globally. Export processing zones amendment act 6 of 1996 gg 37.
Export processing zones epz are strategies for economic development in developing nations used to attract foreign investment to create jobs and more. Enhancing the contribution of export processing zones to. Export processing zones free download as powerpoint presentation. The mauritius free zone, a model for other developing countries. Policy department, directorate general for external policies. Export processing zones in india was set up by the government of india with the aim to initiate infrastructural development and tax holidays in various industrial sectors in the country. Africa, industrial policy and export processing zones. In india, the first zone was set up in kandla as early as 1965. Free zones are intended to foster economic activity and employment that could occur elsewhere. The parliament passed the special economic zones act in 2005 after many consultations and deliberations. An assessment of the impact of export processing zones and. Export processing zones act 9 of 1995 namibia legal database.
It the first authoritative and academically sound account offering an important alternative to prescientific sez histories offered in recent world. This encyclopedia entry positions various types of special economic zones in a broader world history. Export processing zones in development and international. The authority shall permit customs offices to be established in a free trade zone and. The nigeria export processing zones authority may, from time to time, by order, amend, vary or add to the limits of a zone or change the name of a.
Free trade zones, export processing zones, special economic zones, specialized zones economic zones. Article information, pdf download for export processing zones in. Scribd is the worlds largest social reading and publishing site. The answer is likely i to be determined, not in the epz, but in the host countrys national customs area, and ii to vary systematically with the size of the relevant market. The success of export processing zones epzs or the zone franche in. Free zones generally fall into one of four categories. The traditional epz thus combines fiscal incentives attractive to. Export free zones qualifying industrial zones duty free export processing zones the growth of free trade zones currently there are about 3,500 ftzs located in 5 countries around the world, employing more. These zones are in line with the ilo definition of an enterprise zone. To assist in such design, the industry development division has carried out research and operational support work in export policy instruments and institutions. Export processing zones epzs in their traditional form fencedin industrial parks where exportoriented investors enjoy free port status emerged in the period 195075 and first became widely adopted between 197585. In addition to providing the benefits of a ftz, these zones offer other incentives such as exemptions from certain. An export processing zone also may be called a free trade or special enterprise zone and may offer incentives for other businesses in addition to exporters. The world bank has long supported developing countries in reforming their inwardoriented trade and regulatory policies to an outwardoriented direction and in improving the international competitiveness of their industries.
Dutyfree vehicles allowed under certain conditions domestic market available to the extent of 20%. Zones hidzs and the border economic cooperation zone becz, are usually part of a city that allow a broad range of duty free goods and activities. Jump to navigation jump to search in special economic zones business and trades laws differ from the rest of the country. The ghana free zones authority gfza was established on 31st august, 1995 by an act of parliament1995 act 504, to enable the establishment of free zones for the promotion of economic development. Information on such zones normally is available from the investment authority of a country, which also may help foreign companies with licensing and registration for the zone. However, sezs were operational in india from 2000 to 2006 under the foreign trade policy. To provide for the establishment, development and management of export processing zones in namibia, and to provide for matters incidental thereto. Pdf free trade zones, export processing zones, special. According to the world bank, an export processing zone is an. These were at noida uttar pradesh, falta west bengal cochin kerala, chennai tamil nadu and visakhapatnam andhra pradesh. The act came into force along with the sez rules in 2006.
It offers firms free trade conditions and a liberal regulatory environment. An assessment of the impact of export processing zones and an. Several countries around the world have established export processing zones epzs in order to stimulate economic growth by attracting foreign direct investment fdi. The mechanism is called epz is some countries, while it can also be called free trade zone ftz, special economic zone sez and maquiladora, such as found. We establish, license, regulate and operate highly efficient free zones by providing a highly competitive incentive scheme, excellent support facilities and service for the purpose of creating an enabling environment for export manufacturing and other commercial activities.
Enhancing the contribution of export processing zones to the sustainable development goals ii key messages this exploratory report suggests that changes taking place in the global market mean that export processing zones epzs, and special economic zones sezs more generally, can be restructured. Export processing free zones in developing countries. Freetrade zones are mostly settled around major seaports, international airports, and national frontiersareas with many geographic advantages for trade. The term, and a number of other terms, can have different specific meanings in different countries and publications. Export processing free zone, free export zone, industrial free zone, special economic zone china and maquiladora mexico see annex 1. Indonesias growing special economic zones opportunities and challenges august 24, 2018 posted by asean briefing written by vasundhara rastogi reading time. Special economic zones sezs can be regarded as an investment in industrial infrastructure and a services provider to attract and facilitate foreign investment, integrate local firms into global value chains, promote exportoriented growth and generate employment. Over the past three decades export pro cessing zones have become popular instru ments of trade policy, offering firms located in them free. Combining export processing zones and regional free trade agreements. A precursor to the sezs, the export processing zones were set up in india well before. Free banking zones or free insurance zones also fall into this category. Conference on trade and development and a great selection of related books, art and collectibles available now at.
Keywords export processing zones, free trade zones, international. Nigeria export processing zones authority established under this act, designate such area as he thinks fit to be an export processing zone in this act referred to as a zone. More flexibility with labor laws for the firms in the zone. The category sez covers a broad range of more specific zone types, including free trade zones ftz, export processing zones epz, free zones fz, industrial estates ie, free ports, urban enterprise zones and others. In 1959, the very first zone of any consequence was established as irish shannon export free zone. Export processing zones epz the balance small business. But, according to some authors, free trade zones ftz include epz, but many export processing zones are not free trade zones. The initial success of this experiment led to organizations like unido encouraging it as a model to be reproduced by developing countries. Export processing zones epzs are areas within developing countries that offer.
Export processing zones epzs are areas within developing countries that offer incentives and a barrierfree environment to promote economic growth by attracting foreign investment for exportoriented production. Karachi export processing zone kepz, landhi industrial area extension, mehran highway, karachi75150 pakistan 9221 992080394144. To encourage and facilitate international trade, countries all over the world have established export processing zones epzs of many types, including free trade zones, special economic zones, bonded warehouses, free ports, and customs zones. Type of free trade zone ftz, set up generally in developing countries by their governments to promote industrial and commercial exports. Export processing zones epz are spatially delimited areas in which manufacturers produce goods that are largely aimed for export markets. The government set up five more zones during the late 1980s. Nationwide laws may be suspended inside a special economic zone. Over the past decade, the popularity of export processing zones epzs has. Pdf export processing zones epz are spatially delimited areas in which manufacturers. To highlight the underlying economic structure of a zone, specific terms are often added to.
Do export processing zones draw local manufacturers into world markets and thereby engender broader market reform by way of a demonstration effect. Nigeria export processing zones authority downloads. Designing economic zones for effective investment promotion. The notion of the epz may have originated from free trade zones established in major ports such as hong kong, gibraltar, and singapore during the nineteenth century. An export processing zone epz is one of the various export policy instruments studied by the division. These zones are managed and promoted by the export processing zones authority. Unlimited, duty free imports of raw, intermediate input and capital goods necessary for the production of exports. Export processing zones epzs are economics enclaves within which manufacturing for export occurs under virtual free trade conditions. It was followed by the santacruz export processing zone which came into operation in 1973. Policy department, directorate general for external policies this paper was requested by the european parliaments subcommittee on human rights droi.
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