Features of Export Processing Zones

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The Features of Export Processing Zones exhibits the reason behind the setting up of more EPZs in India and the development they have brought within the country. In general, Export Processing Zones (EPZ) can be defined as the labor-intensive and export-oriented production centers of a country. The government of India converted all the Export Processing Zones in the country to Special Economic Zones according to a new scheme in the EXIM Policy, 2000.

The Indian government since the 1960s has encouraged the setting up of Export Processing Zones in India. The main objectives of setting up Export Processing Zones in India are to promote foreign exchange earnings and exports.
EPZs in India are supported by world-class efficient and modern infrastructure, non-fiscal and fiscal concessions, and a business environment that is free from corruption. The various Features of Export Processing Zones are that they are exempted from paying duties on all imports that are made for the purpose of project development, like exemption from VAT, import duty, and also various other taxes.

Further the other Features of Export Processing Zones includes, income tax holidays on the business income, facilities for in house Customs clearance, and exemption from paying VAT/ excise duty on the capital goods that are sourced for project development. Also the various Features of Export Processing Zones comprise of markets, clubs, recreation centers, playgrounds, and residential areas within the premises of the Zone. The various other Features of EPZs are like, foreign direct investment up to 100% is allowed through the automatic route for the activities that are related to the manufacturing sector, tax holiday for a period of 10 years, and abundant supply of manpower.

Features of Export Processing Zones includes easy access to railway station and airport, an environment that is pollution free with proper sewerage and drainage systems, and self- certification and simplification of procedures in the labor acts. Further the various Features of EPZs are efficiency and procedural ease that lead to speedy clearances, approvals, dispute resolution, and customs procedures. Also the various Features of Export Processing Zones are that a number of private and public bank chains set up their branches in the EPZs in order to provide financial assistance to the business houses. The various Export Processing Zones in India are:
  • Cochin Export Processing Zone (CEPZ), Cochin, Kerala
  • Visakhapatnam Export Processing Zone (VEPZ), Visakhapatnam, Andhra Pradesh
  • Falta Export Processing Zone (FEPZ), Falta,West Bengal
  • Santa Cruz Electronic Export Processing Zone (SEEPZ), S. Cruz, Maharashtra
  • Kandla Free Trade Zone (KAFTZ), Kandla, Gujarat
  • Madras Export Processing Zone (MEPZ), Madras, Tamil Nadu
  • Noida Export Processing Zone (NEPZ), Noida, Uttar Pradesh
Features of Export Processing Zones thus show the various incentives that the government of India has been providing to these Zones. The Indian government must continue to provide the best facilities to the Export Processing Zones for this will give a major boost to the Indian economy in the coming days.