This may have risen from practical considerations of the difficulties involved in. Some of the free zones are more suitable to a particular kind of industry whereas others are more general. An entrepreneur can choose the free trade zone in nigeria in which he wishes to incorporate his company according to the services provided in the free zone. If the contact person is not an employee of the grantee, the name of the grantee organization is also given. The relevance of ftzs continues to grow as globalization defines economic progress. Department of commerce, international trade administration rev. The role of free trade zones in economic development case study. The term sez here covers a broad range of zones, such as free trade zones, exportprocessing zones, industrial parks, economic and technology development zones, hightech zones, science and innovation parks. So the au decided, for now, to emphasis the creation of the continental free trade area, leaving aside the common market, and economic and monetary community. Goods can be brought into a zone without formal customs entry or without incurring. Pdf the aim of this paper is to present a descriptive analysis about the free trade zones in oman. Positive economic impact of a free trade zone in the.
Foreign trade zones of the united states, freetrade. Customs port of entry where foreign and domestic merchandise is generally considered to be in international trade. Free trade agreements are treaties that regulate the tariffs, taxes, and duties that countries impose on their imports and exports. A year of reforms how to restructure an underperforming business in china the shanghai and guangdong free trade zones. Although the general concept of a free trade zone is uniform in nature, one encounters a number of different types of free trade zones in different countries. Wco presentation on special customs zonesfree zones. Authority for establishing these facilities is granted by the foreigntrade zones board under the foreigntrade zones act of 1934, as amended 19 u. Freetrade zone, also called foreigntrade zone, formerly free port, an area within which goods may be landed, handled, manufactured or reconfigured, and reexported without the intervention of the customs authorities. A guide to chinas free trade zones online resources on emerging asia issues and 4 special editions per year. The role of free trade zones in economic development. A free trade zone is any area in a country where goods may be importedexported without. Free trade zones are central to the integrated global economy. Progress, emerging challenges, and future directions. The world bank defines free trade zones as in, dutyfree areas, offering warehousing, storage, and distribution facilities for trade, transshipment, and reexport operations.
Tradebased money laundering in freetrade zones across. They are usually located in areas with geographic trade. It is reported to comprise over 600 acres of land adjacent to the airport, developed for. In the same vein, the authors also noted that the free trade zones accounted for only 40, 000 out of the 148, 363 jobs created in 2012, just as only 250 companies, at the rate of ten in each zone. Oecd and the euipo, which sheds new light on the misuse of free trade zones for trade in counterfeit and pirated goods. Lucie county zone 218 palm beach county zone 5 fort lauderdale zone 241 broward county zone 25. A guide to chinas free trade zones fuller landau llp. Goods can remain in free zones for an unlimited period. It the first authoritative and academically sound account offering an important alternative to prescientific sez histories offered in recent world. The free trade zone in shannon was first established in 1959 and generates in excess of 3. Free trade zone benefits include the elimination of importexport duties, the deferral of customs duties, lower quotabased tariffs and lower duty payments, all of which save businesses money. The pros and cons of free trade show that it can be beneficial, but it must be approach by looking at the longterm consequences will be. Foreign trade zones of the united states, freetrade zones of the world, and their impact on the economy, journal of international business and law.
Chapter 7 when trade preferences and tax breaks are no longer enough. Lucie county zone 218 palm beach county zone 5 fort lauderdale zone 241 broward county zone 25 miamidade county zone 281 miami zone 32 miami wynwood zone 180 homestead zone 166 orlando zone 42 seminole. The fias report 2008 identifies the following types of zones pp. They stimulate economic growth and play a central role in business for many countries and leading manufacturers. It presents the evolution of the ftzs and the international legal framework in which they operate, the reasons for establishing such zones and the benefits they offer businesses, and, finally, the role these zones play in fuelling trade in counterfeit and pirated goods. Free trade area overview, advantages and disadvantages. Examples of two current free trade zones within europe are shannon in ireland and katowice in poland. Floridas foreign trade zones pensacola zone 249 jacksonville zone 64 panama city zone 65 brevard county zone 6 sebring zone 215 st. A businessperson can choose from 17 free zones in nigeria, which are.
Epzs, seen as a specific kind of free trade zone ftz for. Siwei cheng, former national peoples congress vice chairman, proposes that china is ready to set up a reform pilot for the transformation from bonded zones to free trade zones. However, when goods are brought into the zones host country, they are subject to the normal im port quotas, duties and excise taxes. A free trade area fta refers to a specific region wherein a group of countries within the said region signs an agreement that seals the economic cooperation among them.
Currently, negative list approach and faster company registration are alr eady being gradually implemented over the country. Money laundering vulnerabilities of free trade zones. The advantages and disadvantages of free trade agreements affect jobs, business growth, and living standards. A comparison the nansha new area explained guangdong free trade zone. Arshiya international will be developing three more free trade and warehousing zones in. The goal of any government is to provide the best possible protections for its people. Free trade zone and port hinterland development escap. Abstract establishment of free zones in the world has a history of several decades. Foreign trade zones california chamber of commerce. This encyclopedia entry positions various types of special economic zones in a broader world history. At the same time, the number and size of free trade zones ftzs or export processing zones. Pdf during the past few decades, free trade zones ftz have become a growing phenomenon as well as an important element of world trade. Introduction 159 free zones in the dominican republic 162 performance and the challenge of adjustment 166 the policy response 172 current situation and conclusions 175.
Zones elsewhere are called by many different names see text box. Pdf free trade zones, export processing zones, special. Irans aras free trade zone mohammad balazadeh abriz ph. Farole, 2011 has the same dual approach by using the term special economic zone while referring to a free zone. Goods of any description, except those specifically prohibited by law, may be brought into a free trade zone, be removed from the free trade zone, destroyed, or sent into customs territory or into another free. It was announced in the foreign trade policy 200409 to set up free trade and warehousing zones ftwz to create trade related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency. They vary according to national characteristics and the goals set for them by national governments. Free trade zone ftz and port hinterland development. Pdf a comparative analysis of free trade zones researchgate. The effect of the designation is that import duties on the merchandise are deferred until the items are actually shipped to a buyer within the u.
Global experiences with special economic zones with a. Fz and sez companies may be 100% foreign owned there are no minimum share capital requirements for oman free zones exemption on corporate taxes. Interpretation on china shanghai pilot free trade zone milestones of cspftzs establishment december 2003 mr. Com floridas foreign trade zones pensacola zone 249 jacksonville zone 64 panama city zone 65 brevard county zone 6 sebring zone 215 st.
Student in economics, university of khazar, baku, republic of azerbaijan. The ftas main aims are to bring down barriers in trading, specifically tariffs and import quotas, and encourage the free trade of goods. Full trade protectionism will not do this, but neither will free trade. Only when the goods are moved to consumers within the country in which the zone is located do they become subject to the prevailing customs duties. Freetrade zones can also be defined as laborintensive manufacturing centers that involve the import of raw materials or components and the export of factory products, but this is a dated definition as more. As part of the obligations of the free trade zone regime, beneficiary companies should present a compliance report on the commitments they have acquired on an annual basis. Pdf during the past few decades, free trade zones ftz have become a growing phenomenon as well as an important element of world. No duties are imposed on goods imported and exported from the free zone oman free trade zone companies are allowed to trade within oman without a local agent.
The move toward free trade zones paul krugman from world war i1 until about 1980, regional free trade agree ments and global trade negotiations under the general agreement on tariffs and trade gatt could reasonably be seen as comple ments rather than substitutesas two aspects of a broad march toward increasingly open international markets. Free trade zones, also known as foreign trade zones are specific geographic areas designated for storing imported goods. Tradebased money laundering in freetrade zones across the worldin the caribbean analysis of select case studies on tradebased money laundering in trade freezones from the caribbean and south america, and how this can be counteracted. The challenge of adjustment in the dominican republics free zones 159. This study examines the potential for the misuse of free trade zones ftzs for trade in counterfeit and pirated goods. Interregional forum on special customs zones free zones for europe and ap regions kazakhstan, in may 2019 relevant wco instrumentstools and documents. We are also grateful to the world customs organization, the european commissions. Sun xuchung tianjin economic and development area teda as well as the policy research bureau and the german office of teda for their information and material support.
Free trade zones eliminate many of the barriers to trade that increase prices for consumers and businesses. Free trade zone in nigeria benefits of free trade zones. Ftwz free trade and warehousing zones is a policy of the government of india goi. This list gives the address and phone number of the contact person for each ftz project. They are usually located in areas with geographic trade advantages, such as major seaports, international airports, and.
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