EXPORT PROCESSING ZONES

Export Processing Zones

Export Processing Zones

Introduction

Export processing zone is a country or a region having a zone for foreign investment, technology exchanging, or to earn foreign exchange that is needed or approved by the State, for the countries ports, airports and other transportation facilities near the place. The establishment of an acceptance of customs supervision has dedicated to the development of export processing industries that are in special enclosed areas. According to Sharpe (1999) the State Council, specifically in China's export processing zones can only be located in the National Economic and Technological Development Zone that is considered as the area having a strict control in the near 23 square kilometres. Export processing zones set up the basic conditions in the challenging environment that must have well-developed transportation, complete and advanced communication facilities, adequate power, improved living facilities, and permissive environment. There should be tax incentives with the intention to measure, and improve the laws and regulations and efficient administration, high quality low cost source of labour, a clear policy to encourage enterprises to set up the provisions. Export Processing Zone functions are: limited to products for export processing trade. Area can be set up export processing enterprises, and their related storage, transportation, enterprise type of labour-intensive. In recent decades, the area export processing zones (EPZs) have been rapidly growing in developing countries. These areas include the companies facing outwards to- what the state provides, and a number of benefits. This success is the result of a convergence of interests: many countries have developing, and converted to a policy of growth through exports, and sought to attract foreign investments, while the country firms industrialized production of goods, and intensive manpower has located a proportion increasing their activities in developing countries in order to reduce costs claimed by Parker (2007).

Discussion

The concept of export processing zone is declining in many ways today, the following being the most frequently in use: French Chest industrial export processing zones commercial (often being presented as platforms located in bonded countries with significant activity in international transit), economic zones nominee special (mainly China) which has bonded warehouses, technology parks and technical areas of financial services ports, and tourist zones (destined to facilitate the retail sale of articles consumer for tourists) and so on. The term export processing zone is therefore, used generically to refer to all of these devices, while many plans and zones exist, which are typically based on neighbouring devices. Some measures a system of import free of duty for intermediate goods, which are required to produce goods in order to export. Special facilities like areas which are serviced industrial areas with water, electricity, telecommunications, and sometimes buildings. Industrial goods are linked to the transport which imposes special rates on inputs, and freight, taxes exemptions export, as well as opportunities. Credit provided favourable regimes in terms of more flexible exchange rate, often up to the total freedom of movement funds, the obligation not to return a part of foreign exchange ...