EPZ at a glance

• EPZ stands for Export Processing Zone.

• Export Processing zones proliferated in the late 20th
century.
• Most EPZs located in developing countries.
• EPZs employing increased from 22.5 to 43 million people
in 2003.
• The basic objectives of EPZs to enhance foreign exchange
earnings and to generate employment opportunities.
• EPZs also known as Special Economic zones in some
countries.
 BEPZA
BEPZA stands for Bangladesh Export Processing Zone
Authority.
‫ ع‬created in 1980.
‫ ع‬the official body to promote, attract and facilitate
foreign investment in EPZs.
‫ ع‬The government adopted an 'Open Door Policy' to
attract foreign investment to Bangladesh.
‫ ع‬An EPZ is defined as a territorial or economic enclave
in which goods may be imported and manufactured.
EPZ Provides:
• Plots/factory BLDG in custom bonded area
• Infrastructural facilities
• Administrative facilities
• Fiscal & non-fiscal incentives
• EPZ attracts : foreign & local investment
Objective:
• Provide special areas where potential investors would find
a congenial
• Investment climate & free from cumbersome procedures.
• Promotion of foreign (FDI) & local investment
• Diversification of export
• Development of backward & forward linkages
• Generation of employment
• Transfer of technology
• Upgradation of skill
• Development of management
 SETTING-UP FIRMS IN EPZs
Bangladesh allows foreign investment in EPZs in convertible foreign
currencies with the option of establishing public or private limited
companies, or sole proprietorship or partnership undertakings.
Industries allowed to be established in EPZs are classified as follows:
(a) Type A: 100 per cent foreign-owned firms, including
investment by Bangladeshi nationals ordinarily resident
abroad. Such as NIKE, REEBOK, ADIDAS.
(b) Type B: Joint venture projects between foreign and Bangladeshi
entrepreneurs resident in Bangladesh. Such as Brooks, JC Penny,
Falcon.
(c) Type C: 100 per cent Bangladeshi entrepreneurs resident in
Bangladesh. Such as EMMILEE, Konka.
 INCENTIVES OFFERED IN EPZ
Fiscal incentives
• Tax holiday for 10 years;
• Exemption of income tax on
interest on borrowed capital;
• Relief from double taxation
subject to bilateral agreements;
• Complete exemption from
dividend tax
• Exemption of income tax on
salaries
• Duty-free import of machinery;
Non-fiscal incentives
• Project expansion and product
diversification without
permission;
• Off-shore, local and international
banking facilities;
• Freedom from national import
policy restrictions;
• Expeditious import of raw
materials on a documentary
acceptance basis;
• Back-to-back letter of credit for
the import of raw materials
 Bangladeshi EPZs at a glance
• EPZ-Comilla
• EPZ-Ishwardi
• EPZ-Karnaphuli
• EPZ-Mongla
• EPZ-Dhaka
• EPZ-Uttara
• EPZ-Adamjee
• EPZ-Chittagong