What is a Exporting Processing Zone?
An Export Processing Zone (EPZ) is a Customs area where one is allowed to import plant, machinery, equipment and material for the manufacture of export goods under security, without payment of duty.
Where are export processing zones created?
The zones are typically located in the vicinity of ports of air and sea, therefore making the import and export process more convenient. Companies do not require as much government approval for practices as firms outside of the zone, with labor laws being more flexible.
What are export processing zones PDF?
Export processing zones (EPZ) are spatially delimited areas in which manufacturers produce goods that are largely aimed for export markets.
What are three characteristics of export processing zones?
An export processing zone is more likely to succeed when monetary and fiscal policies are sound and stable, private property and invest- ment laws are clear, firms are free to repatri- ate earnings at market rates, and there are no restrictions on foreign exchange.
What is the purpose of EPZ?
Export Processing Zones Authority (EPZA) is a Pakistan Government venture, conceived and designed to increase and improve the exports of the country.
Who benefits from export processing zones?
Advantages of the Export Processing Zone
- The increase in foreign exchange through increased exports.
- Job creation.
- Foreign direct investment (FDI) to the host country.
- The introduction of technology into the country.
- And generating backward linkages from the EPZ to the domestic economy.
How many EPZs are there?
4,000 EPZs
Over the past decade, the popularity of Export Processing Zones (EPZs) has grown in many countries across the global south. There are now over 4,000 EPZs, which is over 3,000 more than 20 years ago.
What is import process zone?
Although they may be ‘free trade zones’ by name, they are more accurately described as ‘import-processing zones’, and they represent an exchange between foreign manufactured goods and access to the world’s largest consumer market, a reversal of the export-processing zones of the 1980s.
Who benefits from EPZ?
Domestic, international, or joint venture firms operating in export processing zones typically benefit from reduced red tape, flexible labor laws, generous long-term tax holidays and concessions, above-average communications services and infrastructure (and often subsidized utilities and rental rates), and unlimited …
Who is the owner of EPZ?
The EPZ Authority is a State Corporation, under the Ministry of Trade and Industry. The Authority is provided with general direction by a Board comprising 15 members appointed from both the private and public sectors. The Board is headed by a Chairman appointed by the President.