2.

There are four major types of free zones:

1. Free trade zones (FTZ) are considered to be enclosed duty-free areas for the purpose of providing
warehousing and distribution facilities supporting trade, particularly re-exports. They are commonly
near a point of entry, such as a port, an airport or a land border. The focus is about commerce, such a
finished and semi-finished goods.
2. Export processing zones (EPZ) are offering incentives for manufacturing and related activities with
a particular focus on exports, although several such zones allow non-exporting activities.
3. Free ports are considered to be the broader term of a free zone as they include a rather large area and
can cover a wide range of activities and incentives to promote economic development and trade. They
can include several free zones or be constituted of a single one.
4. Special economic zones (SEZ) are a free port paradigm that has been particularly applied to the
Chinese context as a tool to promote foreign direct investments in well defined areas. The main purpose
is to import parts and raw materials and process them into goods to be exported on international
markets.

Source: adapted from World Bank (2008) Special Economic Zones: Performance, Lessons Learned, and Implications for
Zone Development, Washington, DC: The World Bank.

In Colombia the types of free zones is:

1. Permanent Free Zones (ZFP): Decree 2147 of 2016 is the delimited area of the national territory in
which there are multiple Industrial or commercial users, who enjoy a treatment. Tax, customs and
foreign trade specialization, as the case may be.

2. Special Permanent Free Zones (ZFPE): This is the delimited area of the national territory in which
a single industrial user is installed, which enjoys of a tax, customs and special foreign trade treatment.

3. Transitory Free Zones (ZFT): This is the delimited area of the national territory
where fairs, exhibitions, congresses and seminars are held national or international, that are important
for the economy and / or the international trade, and that they enjoy tax, customs and of special foreign
trade.
Source: Guía practica zonas francas, Cámara de Comercio Bogotá, 2016.

4. What activities can be developed inside a Free Trade Zone?

Industrial activities of goods and services or commercial activities are developed.