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Types Of SEZA
Definitions of the different types of SEZs are provided below. Unless otherwise stated, the definitions have been adopted from the World Bank, and where necessary amended accordingly.
FREE TRADE ZONE (FTZ)
Small, fenced-in, duty free areas, offering warehousing and storage of imported goods which can be handled, manufactured, or re-configured for re-export. FTZ has distribution facilities for trade, transshipment, and re-export operations under specific customs regulations and generally not subject to customs duty
FTZ are generally organized around major seaports, international airports, and national frontier-areas with geographic advantages for trade.
EXPORT PROCESSING ZONE (EPZ)
A specific type of FTZ usually set up by governments in developing countries to promote industrial and commercial exports. It is an industrial estate, usually a fenced-in area of 10 to 300 hectares that specializes in manufacturing for export.
EPZ offers firms free trade conditions and a liberal regulatory environment to attract foreign investors, collaborators, and buyers who can facilitate entry into the world market for some of the economy’s industrial goods, thus generating employment and foreign exchange.
FREE PORT ZONE (FPZ)
FPZ is a special kind of port and it applies specifically to both airports and seaports. Imports entering the FPZ are handled, manufactured, or re-configured for re-export. FPZ has distribution facilities for trade, transshipment, and re-export operations under specific customs regulations and generally not subject to customs duty. Tariffs only apply to exports when they reach their final destination including the domestic customs territory outside the zone.
ENTERPRISE ZONE (EZ)
EZ are generally located on deprived or undeveloped areas of regional centers. Companies are attracted to invest in these areas with tax and regulatory incentives and accordingly encourage development in the identified areas.
TOURISN ZONE (TZ)
An area identified specifically to promote, invest in and develop strong tourist themes both within the natural settings and built environments of the identified area. Special tax and regulatory incentives are applied to encourage investors to invest and develop the tourism products.
BONDED AREA (BA)
Bonded Areas (also known as "Bonded Warehouses") are specific buildings or other secured areas in which goods may be stored, be manipulated, or may undergo manufacturing operations without payment of duties that would ordinarily be imposed. To some extent, a "bonded area" is similar to a "free trade zone" or "free port." However, the major difference is that a "bonded area" is subject to customs laws and regulations, while a "free trade zone" is exempt from these provisions.
SINGLE FACTORY ZONE EPZ (SFZEPZ)
This scheme provides tax and regulatory incentives to individual enterprises regardless of location; factories do not have to locate within a designated zone to receive incentives and privileges.
Note: Single factory EPZ programs are similar to bonded manufacturing warehouse schemes, although typically offering a broader set of benefits and more flexible control.
MARINE INDUSTRIAL ZONE (MIZ)
An area dedicated specifically to landing and processing of fish and marine products for export. This scheme provides tax and regulatory incentives to attract investors into the zone.
SCIENCE TECHNOLOGY PARK (STP)
Facility or area that supports and promotes technological development, including through research and attracting technology-based companies. The purpose is to facilitate innovation and knowledge-based economies. Such parks provide an environment and ecosystem (e.g., proximity to research institutes and universities) conducive to innovation, knowledge-based work and R&D activities. (UNESCO)
Alternate titles of STP are; Technopolis, science city, cyber park, hi tech (industrial) park, innovation Centre, R&D park, university research park, research and tech park, science and tech park, science town, technology incubator, techno park, technopole, and technology business incubator. (UNESCO)
PETROLEUM PARK (PP)
An area dedicated specifically to storage and downstream processing of petroleum products through refinery and petrochemical plants for domestic use and export. This scheme provides tax and regulatory incentives to attract investors to operate in the zone
METALS REFINERY PARK (MRP)
An area dedicated specifically to storage and downstream processing of petroleum products through refinery and petrochemical plants for domestic use and export. This scheme provides tax and regulatory incentives to attract investors to operate in the zone
ENERGY PAK (EP)
LOGISTICS PARK (LP)
An area dedicated specifically for generation of clean renewable energy for transmission and distribution for zone use or off - site markets. Investors are to participate as Independent Power Producers. This scheme provides tax and regulatory incentives to attract investors.
AIRPORT FREE ZONE (AFZ)
Airport Free Zone is comprised of logistics and business parks. Airport Logistics Park is where investors may set up companies in key businesses of; aviation, warehousing, supply and logistics sectors, and the Business Park is where investors may register companies operating in the storage, warehousing and land development sectors. Tax and regulatory incentives are provided to attract investors to develop and operate.
AIRPORT CITY (AC)
An integrated airport and city development which comprises an aviation transportation hub with associated businesses of; aviation, warehousing, supply and logistics sector, within a mixed-use city setting of; business, light industries, light manufacturing and processing, residences and all amenities for a city including essential services and recreation. Tax and regulatory incentives are provided to attract investors to develop and operate in the zone.
FORESTRY PARK (FP)
An area dedicated specifically to storage and downstream processing of logs into timber and wood products for domestic use and export. This scheme provides tax and regulatory incentives to attract investors.
INDUSTRIAL PARK (IP)
Industrial Parks (also called “Industrial Zones”) are largely manufacturing-based sites. Industrial parks may contain both light and heavy industries. The parks normally offer a broad set of incentives and benefits to attract investors.
AGRICULTURAL PARK (AP)
Agriculture Park (also called “Agro - Industry Park) are specially dedicated to adding value to agriculture goods to meet demand for domestic market and for export. This scheme develops the entire supply chain from production (farming) to processing and export. These parks are normally located in rural areas and tax and regulatory incentives are provided to attract investors to develop and operate the parks.
ARTS AND CRAFTS PARK (ACP)
ACP (or also known as Cultural and Creative Industries) is a designated area for investments to promote industries in arts and crafts and associated products including; literature, music, performing arts and visual. Other related industries include; film, museums and libraries, heritage services, publishing, television and radio (City University of Macau, 2021)
BORDER TRADE ZONE (BTZ)
BTZ is similar to a FTZ or EPZ with mixed use developments and includes military border posts. It is a fenced-in area(s) agreed by countries sharing common international border to facilitate cross-border trade. Depending on market demand and trade agreements of participating countries, various SEZ types can exist in the zones and goods and services are exported or traded under specific customs regulations and generally not subject to customs duty, with other tax and regulatory incentives including border crossing and immigration.
RESIDENTIAL ESTATE ZONE (REZ)
REZ is an area for housing or residences and is usually developed as an estate with mixed use developments including business, service industries and all basic amenities. REZ may exist as a component of other SEZ types.
ECO INDUSTRIAL ZONES OR PARKS (EIZ)
Eco-industrial zones or parks focus on ecological improvements in terms of reducing waste and improving the environmental performance of firms. They often use an "Industrial symbiosis" concept and green technologies to achieve energy and resource efficiency. Given the severe environmental challenges, an increasing number of countries is embracing this new type of zone.
FINANACE SEZ (FSEZ)
Finance SEZ is a standalone SEZ area or part of mixed-use development of a zone, allocated exclusively for production and export of finance to invest in the domestic territory or offshore in the international markets.
COMPREHENSIVE SPECIAL ECONOMIC ZONES (CSEZ)
Comprehensive SEZs (also called "Multi-functional Economic Zones") are zones of a large size that have with a mix of different industrial, service and urban-amenity operations. In some cases, these zones can encompass a whole city or jurisdiction, such as Shenzhen (city) and Hainan (province) in China. FIAS (2008), Zeng (2010)
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