Over the last decades, Free Zones have taken on a wide variety of names, concepts and designs, ranging from the more “traditional” models of Export Processing Zones (EPZs) and Free Trade Zones (FTZs) to “new generation” models such as diversified Special Economic Zones (SEZs) and cluster-based Specialized Zones (SZs).
The common denominator among all of these Free Zone concepts, however, is that companies investing and locating
in Free Zones enjoy a privileged status in terms of customs practices and regulations. Zone-based companies are typically exempted from import and export duties, value-added tax (VAT) and other (local) taxes which, in combination with simplified and streamlined customs and administrative practices, considerably reduce their operating costs.
Over the last decades, Free Zones have taken on a wide variety of names, concepts and designs, ranging from the more “traditional” models of Export Processing Zones (EPZs) and Free Trade Zones (FTZs) to “new generation” models such as diversified Special Economic Zones (SEZs) and cluster-based Specialized Zones (SZs).
The common denominator among all of these Free Zone concepts, however, is that companies investing and locating
in Free Zones enjoy a privileged status in terms of customs practices and regulations. Zone-based companies are typically exempted from import and export duties, value-added tax (VAT) and other (local) taxes which, in combination with simplified and streamlined customs and administrative practices, considerably reduce their operating costs.