EXPORT PROCESSING ZONE (EPZ)
As a part of export promotion drive, the government of India has established free trade zones (also known as export processing zones) in different parts of country. The basic idea behind setting up EPZs/FTZs is to provide an internationally competitive duty free environment for export promotion at low cost so that exporting units will operate successfully in the international markets. A free trade zone is an area or industrial belt near a sea/airport where a manufacturing unit can import goods duty free provided the products manufactured are for exports only. Import of goods is duty free but the entry of foreign nationals is not free in the FTZs. The units operating at the free trade zone are expected to export their production to the full extent. The purpose is to offer certain special insensitive in the zones and their by to encourage manufacturers to promote exports. These zones have emerged as effective instruments to boost exports of manufactured products, especially to developing countries. The zones are expected to provide favorable environment for export production.
At present, there are seven export processing zones operating in India (Kandla, Santacruz, Cochin, Chennai, Noida, Falta, and Vishakhapatnam). Each zone provides basic infrastructure facilities in addition to a whole range of fiscal incentives. Custom clearance facilities are also offered within the zone. Government has recently permitted development of EPZs by the private, state or joint sectors. The inter-ministerial committee or private EPZs has already cleared the proposal for private EPZs to be set up in Mumbai, Surat, Tirunelveli and Kancheepuram and at greater Noida.
Along with EPZs, manufacturing units undertaking to exports their production of goods may be set up in Electronic Hardware Technology Parks (EHTPs) and Software Technology Parks (STPs) set up in different parts of the countries.
0 Comments