What are the differences between free zones, export processing zones, enterprise zones, duty free shops, and U.S. foreign-trade zones?
A.Free zones – Allow merchandise to enter an area for storage and be exported or entered into the host country. Export processing zone (EPZ) – EPZs are duty-free zones dedicated to manufacturing for export. No customs duties are charged for entry of raw materials, components, machinery, equipment, and supplies used to produce manufactured goods provided these are then exported. Enterprise zones – Encourage new industrial and commercial activity in economically depressed areas by removing most zoning, taxation, and federal and local business regulations from carefully defined districts. Duty free shops – Retail shops, usually at airport or border locations, where an importer has brought in certain items for resale to travelers, who then take these goods out of the country, without either being required by the host country to pay taxes and duties, or paying less tax and duty than importers selling the merchandise domestically. U.S. foreign-trade zones – Are treated, for the purposes of t
