Multinational corporations and economic inequality in the. 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 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. The other perks this free zone affords to the industrialist is a 10 year tax holiday. I the minister may, upon the advice of the council and in consultation with relevant authorities and on the recommendation of the. An act for the establishment of the bangladesh export processing.
It offers firms free trade conditions and a liberal regulatory environment. Peza attached to the department of trade and industry is the philippine government agency tasked to promote investments, extend assistance, register, grant incentives to and facilitate the business operations of investors in export oriented manufacturing and service facilities inside selected areas throughout the country proclaimed by the president of the philippines as peza special. The workshop participants agreed on the need for new approaches that combine. What is the difference between sez and export processing zone. This information is from a basic guide to exporting provided by the u. Multinational corporations and economic inequality in the global south. 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. Promoting decent work in export processing zones epzs in. Zone edz export oriented edzs specialized township edzs edzs.
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. Epzs are special arrangementsoften a distinct geographic area near a portwhich are set up to promote export industries. 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 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. The global trade and investment context from which. Customs export processing zones rules, 1981 contents page short titl, extent and commencement. Export processing zones in subsaharan africa kenya and. When china set up its first epz in 1979, epzs had started spreading in asia. The paper starts by providing an overview of the costa rican epz regime and. The adoption of exportled growth strategies by developing countries is directly responsible for the considerable expansion of export processing zones epzs in. There is also a 100% tax exemption on income from agro processing. 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. Karachi export processing zone kepz, landhi industrial area extension, mehran highway, karachi75150 pakistan 9221 992080394144.
In the last three decades, the effects of export oriented industrialization have called into question the once popular import substitution strategies. Export processing zones are a blessing trademark east africa. Export processing zones epz are strategies for economic development in developing nations used to attract foreign investment to create jobs and more. In this subchapter, unless there is anything repugnant in the subject or context, a authority means the export processing zones authority established under the. 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 zones epz are spatially delimited areas in which manufacturers produce goods that are largely aimed for export markets. Free trade zones, typically located near seaports or airports, mainly offer exemptions from national import and export duties on goods that are reexported. 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 export processing zones an explanation of export processing zones epzs and how exporters can utilize them.
Defining export processing zones nearly everywhere. 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. Acs after the failure of import substitution programs many developing countries turned to export processing zones epzs to promote growth and development through trade. 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.
Dec 17, 2016 a regular user of adobe indesign will be aware that there are two different kinds of pdf export print and interactive. The main concept of export processing zones was conceived in the early 1970s to promote the growth of the sickening export business of india. To foster development, however, zones must be set up properly, managed well, and integrated with other reforms. 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. 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. Epzs combine the international mobility of capital with domestic workers and exporttraded goods. Export processing zones epzs in their traditional form fencedin industrial. 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. Export processing zones rules notified vide subchapter 3. Export processing zones in development and international. 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 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. Type of free trade zone ftz, set up generally in developing countries by their governments to promote industrial and commercial exports.
Objectives of export processing zones epz qs study. The units operating in these zones are deemed as outside the nations customs territory and shall have full flexibility in operations. 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. This change has been parallel to the development of export processing zones epzs. 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. 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. Enacted by the parliament ofthe united republic oftallzlj1ia. Zanzibar investment promotion authority zipa investment promotion, facilitation, free economic zones and free ports in zanzibar. 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. 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.
It seems to me the main article here should be free trade zone dev1n 21. Currently there are more than 3,500 epzs in countries. 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. Data merge pdf export vs regular pdf export colecandoo. 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. 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. An assessment of the impact of export processing zones and an. 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. 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. An export processing zone is one of many export promotion tools.
Export processing zones act 9 of 1995 namibia legal database. 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. Harnessing namibias manufacturing and exporting potential. 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.
Premnotes theworld bank from the development economics vice presidency and poverty reduction and economic management network. 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. Benefitcost appraisals of export processing zones world bank. According to the world bank, an export processing zone is an. This thesis examines two cases of export processing zone epz programmes in subsaharan africa ssa, specifically in kenya and lesotho. Export processing zone epz embassy of the republic of. Pdf an assessment of the impact of export processing zones and. 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. 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. Free zones are intended to foster economic activity and employment that could occur elsewhere. Its objectives are to attract foreign investors, collaborators. 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. In addition to any other functions conferred on the authority by this decree. Export processing zones rules notified vide subchapter 3 of chapter xii of customs rules, 2001.
Export processing zones epz have been one of the most important components of. Over the past three decades export processing zones epzs have become popular. Polagahawela export processing zone pepz has a total land extent 65 acres including 39 acres of industrial land. Another strategy which was adopted in 1994 to boost zimbabwes export potential was the establishment of export processing zones epzs. Economic and social effects of export processing zones in. Township edzs y large economicareas in the form of townships. On the surface, the pdf export looks the same, but the devil is in the detail. Bangladesh export processing zones authority for creation, development, operation, management and control of export processing zones and for matters connected therewith. 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. 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. Foreign trade zone currently redirects to free port. 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.
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. How to make special economic zones work the zimbabwe. These zones are managed and promoted by the export processing zones authority. Export processing zones act 9 of 1995 gg 1069 brought into force on. Though initially found in a small number of countries, mainly asean ones, such as hong kong china, republic of.
Free zones generally fall into one of four categories. 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 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. Export processing zones are potentially useful tools for export promotion. 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. Pdf export processing zones epz are spatially delimited areas in which manufacturers. Like many developing countries, jamaica has provided many in. In china, for example, the unctad figures include seven zones, of which five are the most open special economic zones.
Firms located in the zone transfer capital and semi processed. In addition to providing the benefits of a ftz, these zones offer other incentives such as exemptions from certain taxes and business regulations. 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. Epzs are small favourable investment and trade conditions that are created inorder to attract export oriented industries. Some of the first free trade zones allowed imports and exports free from custom formalities so that goods could be reexported quickly.
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. This paper studies export processing zones epzs which have become increasingly popular as a. Whereas it is expedient to make provision for the establishment of the. The export processing zones are established to strengthening the exporting business of. 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. The sezs imply a qualitative transformation of traditional export processing zone. 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. Epzs have evolved from initial assembly and simple processing activities. Shanghai and jiangsu became the habitat of chinas epzs, 20 of all the epzs.
Epzs perspectives and international experiences 16 explaining export processing zones 16 policies of states 16 strategies of companies 18 neweridl and epzs 19. Virgill, phd george mason university, 2009 dissertation director. 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. Offers special incentives for export oriented manufacturing investments.
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 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. In addition to providing the benefits of a ftz, these zones offer other incentives such as exemptions from certain taxes and. 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. The success of export processing zones epzs or the zone franche in. The world bank views export processing zones epz as an excellent option for poor countries to join the global market. Export processing zones amendment act 6 of 1996 gg 37. Trade union manual on export processing zones flanders. Establishment of the export processing zones appraisal committee.
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