Procedure of Setting Up EPZ Unit in India

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Procedure of Setting Up EPZ Unit in India includes a wide spectrum of policies and formalities which every export processing zones have to undergo while setting up any industrial unit in the particular zone. It also ensures a number of benefits to the industrial units established within that zone.

The EPZ units in India can be set up by the state governments in either public or private sector or even under the joint venture of both. The EPZ units in India are 100 percent export-oriented and the government of India along with the respective state governments have granted certain incentives for the units that are set up in the export processing zones.

This zone has been set up in India by the government of India in association with other state governments to fuel the export production of goods in India. This would accelerate the economic status of the country by bringing in bigger foreign reserves. Each of the units in EPZ in India offers infrastructural developments such as fertile land, adequate power and water supply, properly designed buildings for factories, roads, customs clearance, and a well maintained drainage system.

Following are the states, which possesses the major EPZ units in India:
  • Santa Cruz (Bombay)
  • Falta (West Bengal)
  • Madras (Tamil Nadu)
  • Noida (UP)
  • Cochin (Kerala)
  • Visakhapatnam (Andhra Pradesh)
Kandla Free Trade Zone is the first export-processing zone in India that has been set up in the year 1965. The Santa Cruz export-processing zone, which is located in Mumbai, fully concentrates on exporting electronics goods and gems and jewelry products whereas the other five EPZ units exports multi-products. The proposals for setting up an EPZ unit in India are automatically approved by the government of India after the necessary conditions are met successfully. The foremost rule for setting up an EPZ in India is that it should not be included in the local tariff area. The main cause behind setting up an EPZ in India is to initiate export production at a cut down rate and also to ensure absolutely tax-free exporting of goods. To enjoy these privileges, the products manufactured should attain the superior quality status and a reasonable price range to compete efficiently in the international market.

Some of the procedures or schemes designed for setting up an EPZ in India are listed as under:
  • The EPZ units in India are entitled to obtain machinery, raw materials, components, consumables, and many more from indigenous or imported resources
  • The EPZ units are free of all kinds of excise or custom duties
  • The products manufactured by such units have to be 100 percent export-oriented and the units must have the NFEP (Net foreign exchange as a percentage of exports) as per Exim policy
  • All the exports made by the EPZ units in India are to be authorized by the development commissioner as per the export-import policy
  • The entrepreneurs can choose their own locations but the manufacturing activities remain custom guaranteed
  • Fresh proposals or applications for setting up of EPZ in India are duly revised by the development commissioner