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. Establishment of the export processing zones appraisal committee. Karachi export processing zone kepz, landhi industrial area extension, mehran highway, karachi75150 pakistan 9221 992080394144. Often relating closely to general concerns about globalization and labor is the practice of granting certain kinds of tax and other regulatory exemptions to international investors through export processing zones epzs. Epzs are small favourable investment and trade conditions that are created inorder to attract export oriented industries. On the surface, the pdf export looks the same, but the devil is in the detail. Defining export processing zones nearly everywhere. Export processing zones epz have been one of the most important components of. Objectives of export processing zones epz qs study.
Bangladesh export processing zones authority for creation, development, operation, management and control of export processing zones and for matters connected therewith. Dec 17, 2016 a regular user of adobe indesign will be aware that there are two different kinds of pdf export print and interactive. This change has been parallel to the development of export processing zones epzs. The main concept of export processing zones was conceived in the early 1970s to promote the growth of the sickening export business of india. The units operating in these zones are deemed as outside the nations customs territory and shall have full flexibility in operations. The world bank views export processing zones epz as an excellent option for poor countries to join the global market. The other perks this free zone affords to the industrialist is a 10 year tax holiday. 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. In this subchapter, unless there is anything repugnant in the subject or context, a authority means the export processing zones authority established under the. Export processing zones act 9 of 1995 gg 1069 brought into force on. Township edzs y large economicareas in the form of townships.
Establishment and membership of the export processing zones authority. Export markets har nessing namibias manufacturing and expor t potential background in 1995, the government of the republic of namibia adopted the export processing zones epz act act no. Pdf export processing zones epz are spatially delimited areas in which manufacturers. There is also a 100% tax exemption on income from agro processing.
While in 1970 only a handful of countries permitted a zone, a recent oecd publication 1996, places the total number of zones at 500 located in 73 countries. In the last three decades, the effects of export oriented industrialization have called into question the once popular import substitution strategies. How to make special economic zones work posted on september 15, 2017 by the independent in analysis, comment, opinion the special economic zones sezs act was promulgated into law in october 2016, largely to attract foreign direct investment fdi inflows, generate employment and promote exports. Export processing zones rules notified vide subchapter 3. Epzs perspectives and international experiences 16 explaining export processing zones 16 policies of states 16 strategies of companies 18 neweridl and epzs 19. These zones are managed and promoted by the export processing zones authority. Multinational corporations and economic inequality in the. Premnotes theworld bank from the development economics vice presidency and poverty reduction and economic management network. What is the difference between sez and export processing zone. Land parcels available in the polgahawela export processing zone are offered for investment projects through private sector investment on long term lease basis. Export processing zone epz embassy of the republic of. Economic and social effects of export processing zones in. Mar 31, 2020 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.
Export processing zones epz are spatially delimited areas in which manufacturers produce goods that are largely aimed for export markets. Export processing zones epzs are those regulatory spaces in a country. Further, the meaning of export processing zones epzs can be broadly defined as an area enjoying special government of india support with respect to fiscal incentives, tax rebates and other exclusive benefits for the growth of export. 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.
Customs export processing zones rules, 1981 contents page short titl, extent and commencement. It offers firms free trade conditions and a liberal regulatory environment. The success of export processing zones epzs or the zone franche in. 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. Export processing zones are potentially useful tools for export promotion. The pros and cons posted on january 16, 2015 by the independent in main news the government has announced plans to introduce special economic zones sezs to attract direct investment, alleviate largescale. Using data from the respective countries epz programme authorities, central banks, relevant studies, and country reports, i show that although the programmes have facilitated employment generation and foreign. Export processing zones epzs can be summarized as a unit bearing clusters of specially designed zones of aggressive economic activity for the promotion of export. Export processing zone epz special industrial park developed in response to international market demand for cheaper goods. Interpretation part ii establishment of export processing zones appraisal committee 3. Epzs combine the international mobility of capital with domestic workers and exporttraded goods.
Acs after the failure of import substitution programs many developing countries turned to export processing zones epzs to promote growth and development through trade. 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. Type of free trade zone ftz, set up generally in developing countries by their governments to promote industrial and commercial exports. Export processing zones often relating closely to general concerns about globalization and labor is the practice of granting certain kinds of tax and other regulatory exemptions to international investors through export processing zones epzs. Free zones are intended to foster economic activity and employment that could occur elsewhere. Like many developing countries, jamaica has provided many in. An act for the establishment of the bangladesh export processing. Currently there are more than 3,500 epzs in countries. Since ultimately the entrepreneur aims at producing for export, the free zones will guarantee high quality products that can enable them compete favourably in the market. According to the world bank, an export processing zone is an industrial estate, usually a fencedin area of 10 to 300 hectares, that specializes in manufacturing for export. Multinational corporations and economic inequality in the global south. Shanghai and jiangsu became the habitat of chinas epzs, 20 of all the epzs. The paper starts by providing an overview of the costa rican epz regime and.
The workshop participants agreed on the need for new approaches that combine. 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. An assessment of the impact of export processing zones and an. Quick facts the export processing zone epz program chapter 280 laws of belize is intended to attract both local and foreign investments to boost production for export markets with a focus on manufactured goods and nontraditional agricultural products. The expansion of export processing zones across the world has posed the challenge of reversing the race to the bottom with regards to the respect of ilo standards in the zones. In this scenario, export processing zones epzs have become rather popular trade policy instruments due to their catalytic role in imparting outward orientation to the economies. Export processing zones epz are strategies for economic development in developing nations used to attract foreign investment to create jobs and more. It seems to me the main article here should be free trade zone dev1n 21. An act to amend the export processing zones act, to make provisions for the establishment of the export processing zones authority, composition of the export processing zones council and related matters. Foreign trade zone currently redirects to free port. Export processing zones in china i introduction export processing zones epz have been one of the most important components of export promotion strategy in developing countries since the 1960s. 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. Epzs are special arrangementsoften a distinct geographic area near a portwhich are set up to promote export industries. Free trade zones, typically located near seaports or airports, mainly offer exemptions from national import and export duties on goods that are reexported.
To foster development, however, zones must be set up properly, managed well, and integrated with other reforms. In china, for example, the unctad figures include seven zones, of which five are the most open special economic zones. Pdf an assessment of the impact of export processing zones and. This paper studies export processing zones epzs which have become increasingly popular as a. This information is from a basic guide to exporting provided by the u. The sezs imply a qualitative transformation of traditional export processing zone. Enhancing the contribution of export processing zones to sustainable development goals was prepared by anthony miller, economic affairs officer, under the supervision of joerg weber, head, investment policies branch and under the overall direction of james zhan. Export processing zones act 9 of 1995 namibia legal database. In exercise of the powers conferred by section 26 of the export processing zones authority ordinance, 1980 iv of 1980, the federal government is pleased to make the following rules, namely.
Enacted by the parliament ofthe united republic oftallzlj1ia. This article describes the conditions of an epz on the outskirts of nairobi, where workers earn three dollars a day without any form of benefits. Export processing zones and units and special economic zones the export processing zones generally go beyond the conditions of ftzs to include a variety of measures aimed at encouraging investment in manufacturing capacity exclusively for export. I the minister may, upon the advice of the council and in consultation with relevant authorities and on the recommendation of the. An export processing zone is one of many export promotion tools. Whereas it is expedient to make provision for the establishment of the. Promoting decent work in export processing zones epzs in. Firms located in the zone transfer capital and semi processed. Export processing zones in subsaharan africa kenya and. Free zones generally fall into one of four categories.
The number seems to include only export processing zones which would appear to correspond to free ports or zone areas with the processing of goods. Export processing zones epzs in their traditional form fencedin industrial. Harnessing namibias manufacturing and exporting potential. Export processing zones export processing zones an explanation of export processing zones epzs and how exporters can utilize them. The global trade and investment context from which. The main objective of sez is to f an provide an internationally competitive and hasslefree environment for export production. Some of the first free trade zones allowed imports and exports free from custom formalities so that goods could be reexported quickly. Over the past three decades export processing zones epzs have become popular. When china set up its first epz in 1979, epzs had started spreading in asia. According to the world bank, an export processing zone is an. Export processing zones epzs in their traditional form fencedin industrial parks where export oriented investors enjoy free port status emerged in the period 195075 and first became widely adopted between 197585. Abstract attempts in africa to use export processing zones epz as an instrument for economic development, with the exception of mauritius, have been less successful then in countries in east asia, central america, and the caribbean basin. Export processing zones in development and international.
Over the past 5 years, 58 epzs appeared in shenzhen, xiamen, the open costal cities expect wenzhou and zhanjiang and in more than ten inland provincial capitals. The export processing zones are established to strengthening the exporting business of. Export processing zone zones established by many countries in the peripherary and semiperipherary where that offer favorable tax, regulatory, and trade arrangements to attract foreign tradeinvestments. Export processing zones act 9 of 1995 to provide for the establishment, development and management of export processing zones in namibia, and to provide for matters incidental thereto. Offers special incentives for export oriented manufacturing investments. The global trade and investment context from which assemblybased epzs emerged has changed significantly in recent years, yet the number of zones continues to expand. In addition to providing the benefits of a ftz, these zones offer other incentives such as exemptions from certain taxes and. How to make special economic zones work the zimbabwe. 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. Data merge pdf export vs regular pdf export colecandoo. This thesis examines two cases of export processing zone epz programmes in subsaharan africa ssa, specifically in kenya and lesotho. The export processing zones authority ordinance, 1980.
Export processing zones in china 1 industrial relation system in epzs into the legal frame, which would contribute to a stable and sustainable development in these areas. Under certain conditions including appropriate setup and good management export processing zones can play a dynamic role in a countrys development, but only as a transitional step in an integrated movement toward general liberalization of the economy with revisions as national economic conditions change. An export processing zone epz is a specific type of ftz usually set up in developing countries by their governments to promote industrial and commercial exports. Though initially found in a small number of countries, mainly asean ones, such as hong kong china, republic of. 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 export oriented production. Polagahawela export processing zone pepz has a total land extent 65 acres including 39 acres of industrial land. In addition to any other functions conferred on the authority by this decree. What users may not be aware of is that there is a third, more subtle method of pdf export, and that is pdf export during data merge.
Its objectives are to attract foreign investors, collaborators. The adoption of exportled growth strategies by developing countries is directly responsible for the considerable expansion of export processing zones epzs in. Objectives of export processing zones epz 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 export oriented production. Zanzibar investment promotion authority zipa investment promotion, facilitation, free economic zones and free ports in zanzibar. Export processing zones epzs have become rather popular trade policy instruments since their modern revival in the late 1950s. Trade union manual on export processing zones flanders. Export processing zones amendment act 6 of 1996 gg 37. The manifest objectives of epzs are to attract foreign capital investment and mobilise investment for capital formation for rapid industrialisation, to create employment opportunities for the countrys manpower, to induce transfer of technology, and to earn foreign. The government of the republic of namibia adopted a policy for the establishment of an export processing zone epz regime to serve as a tax haven for exportoriented manufacturing enterprises in the country, in exchange for technology transfer, capital inflow, skills development and job creation. In addition to providing the benefits of a ftz, these zones offer other incentives such as exemptions from certain taxes and business regulations.
Another strategy which was adopted in 1994 to boost zimbabwes export potential was the establishment of export processing zones epzs. Virgill, phd george mason university, 2009 dissertation director. Export processing zones are a blessing trademark east africa. Africa, industrial policy and export processing zones.
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