1. SEZ & EPZ's
Meaning of Export Processing Zones
Export Processing Zones (EPZs) can be summarized as a
unit bearing clusters of specially designed zones of
aggressive economic activity for the promotion of export.
The main concept of Export Processing Zones was conceived
in the early 1970s to promote the growth of the sickening
export business of India. Further, the meaning of Export
Processing Zones (EPZs) can be broadly defined as an area
enjoying special government of India support with respect to
fiscal incentives, tax rebates and other exclusive benefits for
the growth of export.
Special Economic Zone List
Special Economic Zone is one or more areas of a country where
the tariffs and quotas are eliminated and bureaucratic
requirements are lowered so that more companies are attracted to
the area. The companies establishing in the area also gets extra
incentives for doing business.
In India the policy for setting up SEZ was introduced on April 1,
2000 with a view to provide an internationally competitive and
hassle free environment for exports. The policy offered setting up

2. of SEZ in the public, private, joint sector or by State
Governments.
The following are the list of SEZ in India. Out of these, Noida
(Uttar Pradesh), Falta (West Bengal), Chennai (Tamil Nadu) and
Vishakapatnam (Andhra Pradesh) SEZ were Export Processing
Zone (EPZ) before April 1, 2003.
Export Processing Zones (EPZs) also encompasses pre-defined infrastructural facilities and
regulations pertaining to establishment of such zones and environmental stipulations,
respectively. These Export Processing Zones of India were established to help the growth of
Indian export commodities, especially from the fast growing sectors.
Objectives of setting up of EPZs
• Encourage and generate the economic development
• Encourage Foreign Direct Investments (FDI)
• To channel the sources of foreign exchange within the system in a phased manner
• Foster the establishment and development of industrial enterprises within the said zones
• Encourage and generate wider economic activities by encouraging foreign investments
for the development of the zones
• To channel the foreign exchange earnings for the further development of these zones and
explore new areas for the development of Indian exports
• Encourage establishment and development of Indian industries and business enterprises
and facilitate with proper infrastructure Generate employment opportunity
• Upgrade labor and management skills
• Acquire advanced technology for increased productivity
• Ensure world class quality of products
Three-tier management system in EPZs
• Tier one is headed by the Ministry of Commerce headed by the Commerce Secretary,
which drafts and implements policies and reviews the performance of each such zones
• Tier two is headed by the Board of Approval (BOA), which is responsible for
examination of proposals for opening up of new enterprises in the zone and which is
headed by a person of the level of Additional Secretary
• The Development Commissioner, who is the chief executive of the Export Processing
Zone, heads the three tiers. The Development Commissioner is vested with the power for
the day-to-day function of the zone. Further, he is the head of functions relating to
administration, approval of investment, and he also enforces various regulatory
provisions
Export Processing Zone Scheme

3. Free Trade Zones (FTZ)/ Export Processing Zones (EPZs) have emerged as an effective
instrument to boost export of manufactured products. The Zones, set up as enclaves separated
from the Domestic Tariff Area (DTA) by physical barriers, are intended to provide an
internationally competitive duty free environment for export production at low costs. The basic
objectives of EPZs are to enhance foreign exchange earnings, develop export-oriented industries
and to generate employment opportunities. The first Zone was set up at Kandla (Gujarat) in
1965, followed by SEEPZ, Mumbai in 1972. Thereafter, four more Zones were set up at NOIDA
(UP), FALTA (West Bengal), Cochin (Kerala), Chennai (Tamil Nadu) in 1984 and at
Vishakapatnam (Andhra Pradesh) in 1989. In 1997, Surat Export Processing Zone came into
existence. With the announcement of Special Economic Zone Scheme in year 2000, the four
Export Processing Zones / FTZ, namely Kandla, SEEPZ, Cochin and Surat have been converted
into Special Economic Zones with effect from 1-11-2000.
2. Each Zone provides basic infrastructural facilities, like developed land, standard design
factory buildings, built-up sheds, roads, power supply and drainage, in addition to a whole range
of fiscal incentives by way of Customs, Excise and Income Tax exemptions. Customs clearance
facilities are offered within the Zone at no extra charge, while facilities like banking, post office
and clearing agencies are also available in the service centers attached to each Zone.
3. The Export & Import Policy provisions for Export Processing Zones are the same as
applicable to EOUs. Thus, the provisions of EXIM Policy regarding importability of goods, DTA
sale, clearance of samples, sub-contracting, inter-unit transfer, repairs, re-conditioning and re-
engineering, sale of unutilized material, debonding etc. for EOUs are applicable to EPZ units.
4. The Development Commissioners appointed by the Ministry of Commerce monitor and
coordinate the functioning of each Zone. The Customs act in close liaison with the Development
Commissioner of the respective Zone in providing bond facilities and for ensuring that goods
imported/indigenously procured duty free are utilised in the production of goods for export. To
enable the EPZs to import/procure locally their requirement of raw materials, capital goods and
office equipment etc. duty free, a number of Customs and Central Excise notifications have been
issued by the Ministry of Finance. These notifications specify the different categories of items
allowed to be imported/procured duty free as well as the conditions thereof. The permissible
item, cover almost all categories of goods required in connection with the production activity for
export & include capital goods, raw materials, components, packing, consumables, spares etc.
The relevant notifications are as under:-
133/94-Cus, dated 22.6.1994 for allowing duty free import of specified goods to the units
(i)
located in the Export Processing Zone;
58/2000-Cus, dated 8.5.2000 for allowing granite-quarrying units located in the Export
(ii)
Processing Zone to import specified goods duty free;
(iii 177/94-Cus, dated 21.10.1994 for allowing Gems & Jewellery units located in the Export
) Processing Zone to import specified goods duty free;
126/94-CE, dated 2.9.1994 for allowing EPZ units to procure locally the specified goods
(iv)
duty free;

4. 37/2000-CE, dated 8.5.2000 for allowing granite-quarrying units located in the Export
(v)
Processing Zone to procure specified goods duty free;
As the policy provisions for units located in Export Processing Zone are the same as
those applicable to EOUs, for details the chapter on EOUs may please be referred to. It may be
mentioned that in case of EPZ, the units are not required to take licence under section 58 of the
Customs Act. Further, the EPZ units are not required to pay cost recovery charges for the
Customs staff posted in the Zone.
export processing zone (EPZ)
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Definition
Type of free trade zone (FTZ), set up generally in developing countries by their governments to
promote industrial and commercial exports. In addition to providing the benefits of a FTZ, these
zones offer other incentives such as exemptions from certain taxes and business regulations. Also
called development economic zone or special economic zone.