Export processing zone

LEGAL CLASS PRESENTATION

1. EXPORT PROCESSING ZONE SUBMITED TO : MR.INDRAKESH SIR BY : BABITA SINGH ADITI SINGH ANAMIKA GOUR ADITYA SINGH ANUJ PRATAP SINGH

2. EPZ stands for Expert Processing Zone. Expert Processing Zone proliferated in the late 20 th century. Most EPZs located in developing countries. EPZs employing increased from 22.5 to 43 million people in 2003. The basic objectives of EPZs to enhance foreign exchange earnings and to generate employment opportunities. EPZs also known as Special Economic Zones in some countries. overview

3. An Expert Processing Zone (EPZ) is a specific type of Free Trade Zone (FTZ), set up generally in developing countries by their governments to promote industrial and commercial exports . Introduction

4. Provide special areas where potential investors would find a congenial investment climate & free from cumbersome procedures. Promotion of foreign (FDI) & local investment. Diversification of export. Generation of employment. Transfer of technology. Upgradation of skill. Development of management .

5. Overview of Epz in India Includes the administrative structure and the facilities offered by the Export Promotion Zones of India. An Export Processing Zones bears cluster of specially designed commercial zones for aggressive promotion of exports of India. The basic concept of Export Processing Zones was conceived in the 1970 s and it was implemented to encourage the growth of export of India. All the Indian Export Processing Zones are facilitated with fiscal incentives, subsidized taxes and other exclusive benefits for the growth of Indian export.

6. Epz in india Santa Cruz Electronic Export processing Zone ( Andheri East Mumbai) Falta Export Processing Zone ( J C Bose Road Calcutta) Cochin Export Processing Zone (Kakkanand,Cochin ) Noida Export Processing Zone ( Khel Gaon Marg, New Delhi) Madras Export Processing Zone ( GST Road, Tambaram, Chennai ) Visakhapatnam Export Processing Zone ( Shripuram Junction, Vishakhapatnam)

7. Facilities offered by the epz s in india Uninterrupted power supply Single window clearance Cost effective and skilled labour Water connection Locational advantage Proper infrastructure Medical facilities

8. features of epz EPZs allow subcontracting activities in case of manufactured goods within India as well as in foreign countries. Licenses are required for IT industries Only Tax Holidays allowed for raw materials and capital goods Exemption from Corporate Income Tax

9. Private bonded warehouses for the purpose of import, re-export, marketing etc. Exemption from Customs Duty. Commodities supplied from DTA are exempted from Excise Duty. Advantage of choosing the desirable location on the fulfillment of required conditions.

10. Developmental stages There are four processing zones of EPZ in India.

11. 1. Initial stage : The establishment of the Kandla Free Trade Zone in the city of Gujarat in the year 1965 and the consequent establishment of the Santacruz Electronics Export Processing Zone. Limitations: Lack of a proper policy and administrative control. Weak infrastructure Limited scope for concessions Lack of adequate incentives

12. 2. Second stage: It witnessed the Second Oil Price Shock , which hampered the export activities significantly and led the establishment of a number of EPZ to boost the export sector. EPZ were set up in West Bengal, Tamil Nadu, Kerala, Uttar Pradesh and in Andhra Pradesh and were named as: Falta Export Processing Zone Chennai Export Processing Zone Noida Export Processing Zone Cochin Export Processing Zone Visakhapatnam Export Processing Zone

13. 3. Third stage: It witnessed economic liberalization in India and restructuring of the entire export processing zone framework in the year 1991 . This stage incorporated various measures for example: More Fiscal Incentives. Simplification of Policy Provisions. Incorporation of more industries like horticulture, re-engineering, agriculture, aqua culture.

14. 4. Fourth stage: The introduction of the concept of special economic zones in the EXIM policy of 1997-2002 . The special economic zones extended their scope to include private companies together with the government organizations and offered space to be used for residential as well as for industrial purpose. They offer various fiscal and non-fiscal benefits to the inhabitants in the form of tax exemption, relaxation in duties, and various incentives to enhance the Indian economy.

15. ADVANTAGES OF EPZ Promotion of foreign (FDI) Increase in national exports and export diversification Promotion of local investment Generate employment opportunities Development of Management Development of skill labour Attract & Encourage transfer of new technology

16. DISADVANTAGES Majority of females labours Condition of working Suppression of labour rights Wages in rural areas mostly High work intensity and low wages Unsafe working condition