Unit 7 EXPORT PROCESSING ZONES, EXPORT ORIENTED UNITS AND EXPORT HOUSES

Prepared By syamily

       Export processing zones(EPZ),Export oriented units( EOU),& special economic zones( SEZ) units have been created to increase production base for the export purposes.
•EPZs & EOUs
     The objectives for setting up of EPZs generally are as follow:
* Generating foreign exchange earnings
* Creating employment opportunities
* Attracting foreign capital
* Transfer of technology
* Acquiring and upgrading   labour management skills,and
* Linkages between EPZ industries and the domestic economy.
•Export processing zones in India
      Seven export processing zones are operating in the country.these are:
1.KFTZ,Kandla,Gujarat.
2.SEEPZ,Santa Cruz,Mumbai.
3.Noida export processing zone,noida,UP.
4.Madras Export processing zone ,chennai.
5.Cochin Export processing zone,Cochin,Kerala.
6. Falta export processing zone,falta,west Bengal
7. Visakhapatnam export processing zone,Visakhapatnam.

• Export Oriented Units
        It is complementary to the EPZ scheme.There is hardly any difference between an export oriented unit located inside the zone and an export oriented unit located outside the zone or say Domestic Tariff Area(DTA).
• Eligibility and Approvals
        Units undertakings to export their entire   production of goods and services may be set up under the EOU scheme,EPZ scheme,EHTP scheme or STP scheme.

BENEFITS & FACILITIES
    • Importability  of Goods
    • Second hand capital      goods.
    • DTA sales
    • Export Through status holder
    • Entitlement for supplies from the DTA
    • Inter unit transfer
    • sub contracting

SPECIAL ECONOMIC ZONE

*Benefits & facilities
• Trading including labeling,Re-packing,minor processing
• Reconditioning repair and Re-Engineering
• Sale in DTA
• Sale/Disposal of rejects/waste/scrap/remnants in DTA.
• Subcontracting
• Inter- unit transfer
• Self-Certification
• Administration of SEZ

* EXPORT HOUSES,TRADING HOUSES,STAR TRADING HOUSES & SUPERSTAR TRADING HOUSES
     The objective of the scheme is to recognise established exports house,trading house,star trading house& super star trading house with a view to building marketing infrastructure and expertise required for export promotion.

*Benefits and Facilities
     • They are entitled to avail  the facilities of duty entitlement passbook scheme
     • They may avail the facility of marketing development assistance.
    • They are permitted to maintain foreign currency accounts for settlement of payment for import,repayment of foreign currency loans and expenditure to be incurred for certain purpose approved by RBI.