FREE TRADE ZONES

AND
SPECIAL ECONOMIC ZONE

Presented By
ANUP . R
T4-MBA
CETSOM
 SPECIAL ECONOMIC ZONES
Special Economic Zone(SEZ) is defined as a specifically
delineated duty free enclave and shall be deemed to
be foreign territory for the purpose of trade operations
and duties and tariffs.

Aspecial economic zone(SEZ) is an area in which

business and trade laws differ from the rest of the
country. SEZs are located within a country's national
borders, and their aims include: increased trade,
increased investment, job creation and effective
administration.
SEZ
CATEGORIES
Free Trade
Zone(FTZ)
Export Processing
Zones(EPZ)
Free Zones(FZ)
Industrial
Estates(IE)
Free Ports
Urban Enterprise
Zones
 FORMATION OF ACTS
With a view to overcome the shortcomings experienced on account of the
multiplicity of controls and clearances; absence of world class
infrastructure and an unstable fiscal regime and a view to attract larger
foreign investments in India, the Special Economic Zones(SEZ) Policy was
announced in April 2006

Objectives of SEZ Act

Generation of additional economic activity

Promotion of export of Goods and Services

Promotion of investment from Domestic and Foreign

sources

Creation of employment opportunities

Development of Infrastructure facilities

 GROWTH AND ATTRACTS FOREIGN
DEVELOPMENT DIRECT INVESTMENS

EXPOSURE TO
INCREASING GDP AND
TECHNOLOGY AND ADVANTAGES OF SEZ
ECONOMIC MODEL
FOREIGN MARKET

EMPLOMENT
OPPURTUNITIES ARE
CREATED
 FREE TRADE ZONES

Free Trade Zones are geographical areas defined within the

national territory, for the development of industrial goods and
services or commercial activities under a special tax, customs
and foreign trade regime.
 HISTORY OF FREE TRADE ZONES
First free trade zone in the world had started on 1st January 1965
at Kandla Port, Kutch, India.
By 1978 India had another four free trade zones in Mumbai,
Chennai, Noida and Falta.
In 1978 China had gone through major economic make over and
they had realized power in concept of free trade zones.
First Chinese Free Trade Zone became operational in 1984-
Shenzhen
In the year 2000 one zone of Shenzhen was exporting thrice that
of India.
Today there are about 2000 operational Free Trade Zones spread
over 150 countries in the world.
 PURPOSE OF FREE TRADE ZONES
Be an instrument for job creation and attraction of new capital
investments.
Be a development center that promotes competitiveness in the
regions where they are created.
Simplify procedures for the commercialization of goods and
services to facilitate its sale
Develop highly productive and competitive industrial processes,
within the parameters of security, transparency, technology, clean
production and sound corporate practices.
Promote economies of scale.
 TYPES OF FREE TRADE ZONES

Permanent Free Trade Zones(PFTZ)

Special permanent or single Enterprise Free Trade Zones(SEFTZ)

Transitory Free Trade Zones(TFTZ)

Permanent Free Trade Zones:
PFTZ are also generally known as industrial parks. In PFTZ several
and diverse industrial and commercial projects are established.
PFTZ includes various industrial and commercial users.

Single Enterprise Free Trade Zones:

single company is declared a Free Trade Zone, and thus is entitled
to exercise industrial or service activities in a given limited area of
the territory, with tax, FX and customs benefits. The projects qualify
as SEFTZ are projects of high economic and social impact for the
country

Transitory Free Trade Zones :

It is one that is authorized for trade fairs, exhibitions, conferences
and seminars of international importance for the economy and the
country's international trade.
 USERS OF FREE TRADE ZONE
OPERATOR : Authorized to direct, administer, supervise,
promote and develop one or several Free Trade Zones, and to
authorize companies to become Free Trade Zone users

INDUSTRIAL USER OF GOODS : User installed exclusively

in one or several Free Trade Zones, who is authorized to produce,
transform or assemble goods only within/from the Free Trade Zone.

INDUSTRIAL USER OF SERVICES : User authorized to

provide services only within/from or from a Free Trade Zone.

COMMERCIAL USER : User authorized to develop activities of

marketing, storage or conservation of goods, in one or several Free
Trade Zones