ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Export processing zones (EPZs) are areas within developing countries that offer incentives and a barrier-free environment to promote economic growth by attracting foreign investment for export-oriented production.

Detailed explanation-2: -Posted in Basic page. 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.

Detailed explanation-3: -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.

Detailed explanation-4: -The main advantages of export-processing zones include tax incentives, lower land rentals, exemption of import, export and value-added taxes and reduced regulatory oversight in administrative and customs procedures.