| |
Trade |
Manufacturing |
Services |
| |
Free
port |
Special
economic zone |
Industrial
free zone / EPZ |
Enterprise
zone |
Information
processing zone |
Financial
services zone |
Commercial
free zone |
| Physical
characteristics |
entire city or jurisdiction |
entire province region
or municipality |
enclave or industrial
park |
part of city or entire
city |
part of city or "zone
within zone" |
entire city or "zone
within zone" |
warehouse area, often
adjacent to port or airport |
| Economic
objectives |
development of trading
centre and diversified economic base |
deregulation; private
sector investment in restricted area |
development of export
industry |
development of SMEs in
depressed areas |
development of information
processing centre |
development of off-shore
banking, insurance, securities hub |
facilitation of trade
and imports |
| Duty
free goods allowed |
all goods for use in trade,
industry, consumption |
selective basis |
capital equipment and
production inputs |
no |
capital equipment |
varies |
all goods for storage
and re-export of import |
| Typical
activities |
trade, service, industry,
banking, etc. |
all types of industry
and services |
light industry and manufacturing |
all |
data processing, software
development, computer graphics |
financial services |
warehousing, packaging,
distribution, trans-shipment |
Incentives
- taxation
- customs’ duties
- labour laws
- other |
simple business
start-up; minimal tax and regulatory restraints. Waivers with regard to termination
of employment and overtime. Free repatriation of capital, profits and dividends
preferential interest rates. |
reduced business taxes;
liberalised labour codes; reduced foreign exchange controls. no specific advantages;
trade unions are discouraged within the SEZ |
profits tax abatement
and regulatory relief; exemption from foreign exchange controls. free repatriation
of profits. Trade union freedom restricted despite the fact that EPZs are required
to respect national employment regulations.15 years exemptions on all taxes(maximum) |
zoning relief; simplified
business registration;
local tax abatement; reduction of licensing requirements. Trade unions are prohibited.
Government mandated liberal on hiring and firing of workers |
demonopolization and deregulation
of telecoms;
access to market- priced INTELSAT services. a specific authority manages labour
relations. Trade union freedom restricted |
tax relief; strict confidentiality;
deregulation of currency exchange and capital movements.free repatriation of profits |
exemption from import
quotas. reinvested profits wholly tax-free |
| Domestic
sales |
unrestricted within freeport
outside freeport, upon payment of full duty |
highly restricted |
limited to small portion
of production |
|
|
limited to small portion
of production |
unlimited, upon payment
of full duty |
| Other
features |
additional incentives
and streamlined procedures |
developed by socialist
countries |
may be extended to single-
factory sites |
|
|
|
|
| Typical
examples |
Hong-Kong (China),
Singapore, Bahamas freeport, Batam, Labuan, Macao |
China (southern provinces,
including Hainan and Shenzhen) |
Ireland, Taiwan (China),
Malaysia,Dominican Republic, Mauritius,Kenya, Hungary |
Indonesia, Senegal |
India-Bangalore, Caribbean |
Bahrein, Dubai, Caribbean,
Turkey, Cayman |
Jebel ali, Colon, Miami
(USA FTZ) Mauritius, Iran |
