Free economic zone

Free economic zones (FEZ), free economic territories (FETs) or free zones (FZ) are a class of special economic zone (SEZ) designated by the trade and commerce administrations of various countries. The term is used to designate areas in which companies are taxed very lightly or not at all to encourage economic activity. The taxation rules are determined by each country. The World Trade Organization (WTO) Agreement on Subsidies and Countervailing Measures (SCM) has content on the conditions and benefits of free zones.

Some special economic zones are called free ports. Sometimes they have historically been endowed with favorable customs regulations such as the free port of Trieste. In recent years the free port system has been accused of facilitating international art crime, allowing stolen artworks to remain undetected in storage for decades.[1]

Geographic locations of the Free Economic Zones
Geographic locations of the Free Economic Zones as of 2012

Definition

According to the 1999 Revised Kyoto Convention, a "'free zone' means a part of the territory of a contracting party where any goods introduced are generally regarded, insofar as import duties and taxes are concerned, as being outside the customs territory."[2]

History

An early type of special economic zone was free ports, these historically were endowed with favorable customs regulations. In modern times free port has come to mean a specific type of special economic zone, for example LADOL. All "free ports" in the world are permitted by the respective States, save the Free Port of Trieste that with the signing of the 16th Resolution of the Security Council of the United Nations [3] (10 January 1947) and the signing of the Treaty of Peace with Italy (10 February 1947, ratified 15 September 1947) were put territorially under the sovereignty of the United Nations itself. As cited on Annex VIII, Article 3 paragraph 2 : "The establishment of special zones in the Free Port under the exclusive jurisdiction of any State is incompatible with the status of the Free Territory and of the Free Port". For example, it is not possible to apply the "Italian Law on Ports" in the extraterritorial free zones of the UN Free Port of Trieste with the effect that all actual territorial concessions are null and void.

List of free economic zones by country

Albania

Argentina

Armenia

Bangladesh

Bangladesh Export Processing Zone Authority

Belarus

Bolivia

  • Cobija Free Economic Zone (Zona Franca de Cobija, in Spanish)[8]

Brazil

Bulgaria

Chile

China

Egypt

  • Port Said Public Free Zone
  • Alexandria Public Free Zone
  • Nasr City Public Free Zone
  • Suez Public Free Zone
  • Ismailia Public Free Zone
  • Damietta Public Free Zone
  • Media Public Free Zone
  • Shebin El- Kom Public Free Zone
  • Qeft Public Free Zone
  • Port Said East Port Public Free Zone

France

Georgia

Germany

Ghana

  • Tema, Free Zone Enclave

India

Iran

Iraq

  • Sulaymaniyah Free Zone

Ireland

Italy

South Korea

Latvia

Lithuania

Nigeria

North Macedonia

  • Free Economic Zone Skopje 1[30]
  • Free Economic Zone Skopje 2[30]
  • Free Economic Zone Stip[30]
  • Free Economic Zone Tetovo[30]

Malaysia

Moldova

Mongolia

Morocco

Norway

Oman

Pakistan

Peru

  • Tacna Free Economic Zone (Zona Franca de Tacna, in Spanish)[36]

Philippines

Qatar

Qatar has free zones and Special Economic Zones with differing laws on taxation and corporate ownership

Russia

In Russia there are only Special Economic Zones

Technical/Innovational Zones

Industrial/developmental Zones

Tourist Zones

Serbia

Serbia has 14 free economic zones as of September 2017;[38] these are:[38]

  • Free Zone Apatin
  • Free Zone FAS-Kragujevac
  • Free Zone Kruševac
  • Free Zone Niš-South
  • Free Zone Novi Sad
  • Free Zone Pirot
  • Free Zone Priboj
  • Free Zone Smederevo
  • Free Zone Subotica
  • Free Zone Svilajnac
  • Free Zone Šabac
  • Free Zone Užice
  • Free Zone Vranje
  • Free Zone Zrenjanin

Spain

Somaliland

  • Berbera Free Zone DP World BFZ[39]

Switzerland

Tajikistan

Turkey

Turkmenistan

Ukraine

United Arab Emirates

United Kingdom

United States

Vietnam

Yemen

See also

References

  1. ^ "Experts identify top six scandals amid boom in art crime" The Art Newspaper, 1 July 2015 [1]
  2. ^ Revised Kyoto Convention 1999.
  3. ^ https://undocs.org/S/RES/16(1947)
  4. ^ "Technical And Economic Development Areas - Official website of TEDAs in Albania". Retrieved 12 May 2016.
  5. ^ "BIS ALBANIA GROUP". Retrieved 12 May 2016.
  6. ^ "ALTAX - LAW. TAX. TRANSPARENCY". 6 May 2016. Archived from the original on 26 May 2016. Retrieved 12 May 2016.
  7. ^ "Zona Franca General Pico". Retrieved 12 May 2016.
  8. ^ http://zofracobija.gob.bo/
  9. ^ "Integrated Business City - Sri City". Retrieved 12 May 2016.
  10. ^ Administrator. "MARG Swarnabhoomi smart city by MARG Group, a GRK Reddy Venture". Retrieved 12 May 2016.
  11. ^ "Account Suspended". www.inspirainfra.com.
  12. ^ "Shannon Heritage Home". Retrieved 12 May 2016.
  13. ^ "Korean Free Economic Zones". Retrieved 12 May 2016.
  14. ^ Authority), BJFEZ (Busan-Jinhae Free Economic Zone. "BJFEZ (Busan-Jinhae Free Economic Zone Authority)". eng.bjfez.net.
  15. ^ http://www.dgfez.go.kr Archived 2009-06-05 at the Wayback Machine
  16. ^ 국문 사이트. "광양만권경제자유구역청". Retrieved 12 May 2016.
  17. ^ http://www.ifez.go.kr
  18. ^ "황해경제자유구역청". Retrieved 12 May 2016.
  19. ^ http://sgfez.go.kr/
  20. ^ "EFEZ - East coast Free Economic Zone : Invest Gangwondo". www.efez.go.kr.
  21. ^ 충청북도. "충청북도". eng.cbfez.go.kr.
  22. ^ "Home". Retrieved 12 May 2016.
  23. ^ "Stratēģiskais novietojums". Retrieved 12 May 2016.
  24. ^ "Freeport of Riga - Your Reliable Business Partner in the Baltic Sea!". Retrieved 12 May 2016.
  25. ^ "VATP". Retrieved 12 May 2016.
  26. ^ "Laisvoji ekonominė zona Baltic FEZ". Baltic FEZ. Retrieved 12 May 2016.
  27. ^ "Invest in Klaipėda, Lithuania - FEZ Klaipeda". Retrieved 12 May 2016.
  28. ^ "Panevėžio laisvoji ekonomine zona - LEZ Panevėžyje". Retrieved 12 May 2016.
  29. ^ "West Africa's High Value Industrial Free Zone and Logistics Hub". Retrieved 19 June 2016.
  30. ^ a b c d "Home". Retrieved 12 May 2016.
  31. ^ http://www.adb.org/sites/default/files/project-document/66546/36027-07-reg-tacr.pdf
  32. ^ a b "Law on Economic Zones - Invest Mongolia". investmongolia.wordpress.com.
  33. ^ "TMZ - Tanger Med Zones - TMSA". Retrieved 12 May 2016.
  34. ^ Islamabad,Pakistan., Ministry of Planning, Development & Reform 'P' block Pak-Secretariat,. "Development of Free Zone - China-Pakistan Economic Corridor (CPEC) Official Website". www.cpec.gov.pk. horizontal tab character in |title= at position 26 (help)
  35. ^ (PCI), Pakistan-China Institute. "CPEC - China-Pakistan Economic Corridor (CPEC)". www.cpecinfo.com.
  36. ^ "ZOFRATACNA - Zona Franca de Tacna, Perú". Retrieved 12 May 2016.
  37. ^ "Special Economic Zones". Manateq. Archived from the original on 2016-04-06. Retrieved 2016-07-29.
  38. ^ a b Mikavica, A. (3 September 2017). "Slobodne zone mamac za investitore". politika.rs (in Serbian). Retrieved 17 March 2019.
  39. ^ "DP WORLD TO DEVELOP FREE ZONE IN SOMALILAND -" (PDF). Retrieved 6 Nov 2017.
  40. ^ Rafis Abazov, Historical Dictionary Of Turkmenistan, p. 62, ISBN 978-0-8108-5362-1
  41. ^ "Ukraine and EU are ready to implement free trade agreement". 112.International. Retrieved August 18, 2015.
  42. ^ [www.adgm.com/ "Abu Dhabi Global Markets"] Check |url= value (help). www.adgm.com. Retrieved 29 July 2018.
  43. ^ "JAFZA (Jebel Ali Free Zone)". Business-Dubai.com. Retrieved 23 November 2015.
  44. ^ a b c "Xây dựng 3 "đặc khu kinh tế" Vân Đồn, Bắc Vân Phong và Phú Quốc" (in Vietnamese). N.Mạnh. 7 December 2016. Retrieved 22 May 2017.
  45. ^ "Aden Free Zone". Aden Free Zone Authority. Archived from the original on 29 February 2012. Retrieved 12 May 2016.

Bibliography

External links

Akmenė Free Economic Zone

Akmenė Free Economic Zone is a special economic zone located in Akmenė, Lithuania. It is 98.6 ha area, which was established in 2012.

Daegu–Gyeongbuk Free Economic Zone

The Daegu–Gyeongbuk Free Economic Zone (DGFEZ) is a Free Economic Zone located in the southeastern part of South Korea. DGFEZ has 8 sites spanning over 20 square kilometers in Daegu Metropolitan City and Gyeongsangbukdo (Gyeongbuk) Province (Pohang, Gyeongsan, and Yeongcheon cities). As of January 2014, DGFEZ is home to 150 organizations attracting over $2 billion in investment ($350 FDI).The Daegu-Gyeongbuk region is home to 5.5 million people and over 13% of the nation’s manufacturers including global conglomerates Samsung, LG, Hyundai and POSCO. DGFEZ focuses on 4 major industries; IT Convergence, High-tech Transportation Components, Green Energy, and Knowledge Services. The development of these districts is scheduled to conclude in 2020. DGFEZA has offices in Daegu and Seoul.

Free Economic Zone of Manaus

The Free Economic Zone of Manaus (Portuguese: Zona Franca de Manaus, Portuguese pronunciation: [ˈzõnɐ ˈfɾɐ̃kɐ dʒi mɐˈnawʃ] - ZFM) is a free economic zone in the city of Manaus, the capital of the State of Amazonas, Northern Brazil. The initial idea, a free trade port in Manaus, came from Deputy Francisco Pereira da Silva and was subsequently formalized by Law No. 3.173 on June 6, 1957. The project was approved by the National Congress on October 23, 1951 under No. 1.310 and regulated by Decree No. 47.757 on February 2, 1960. It was then amended by rapporteur Maurcio Jopper, engineer, who by agreement with the original author, justified the creation of a free economic zone instead of a free trade port.For the first ten years the ZFM (Manaus Free Trade Zone) was located in a warehouse rented from Manaus Harbour, in the Port of Manaus, and relied on federal funds. It was perhaps due to this lack of its own resources that there was little credibility in the project.

On February 28, 1967, President Castello Branco signed Decree-Law No. 288, whose draft accompanied the Exposition of Motives. Decree-Law No. 288 amended the provisions of Law No. 3.173/57 and redefined the Manaus Free Trade Zone in more concrete terms. The new Decree-Law stipulated that the Manaus Free Trade Zone would have an area of 10,000 km2 (3,900 sq mi) with an industrial centre as well as an agricultural center and that these would be given the economic means to allow for regional development in order to lift the Amazon out of the economic isolation that it had fallen into at that time. Decree No. 61.244 of August 28, 1967 created the Manaus Free Trade Zone Superintendence, SUFRAMA, an autarchy with its own legal status and assets and having financial and administrative autonomy.

Tax incentives and the subsequent complementary legislation created comparative advantages in the region with respect to other parts of the country and as a result the Manaus Free Trade Zone attracted new investment to the area. These incentives constituted tax exemptions administered federally by SUFRAMA and SUDAM.

Gwangyang

Gwangyang (Korean pronunciation: [kwaŋ.jaŋ]) is a city in South Jeolla Province, South Korea. Gwangyang city is the home of POSCO's Gwangyang Steel Works, the largest facility of its kind in the world.

The city is also home to K League Classic football side Jeonnam Dragons.

Gwangyang is at the centre of development for the Gwangyang Bay Area Free Economic Zone (GFEZ) due for completion in 2011. The Free Economic Zone will focus on port container handling, steel production, shipbuilding as well as leisure facilities.

Famous people from Gwangyang include National Intelligence Service head Kim Seung-kew.

To the north of the city is the county of Gurye, to the east along the Seomjin River is the county of Hadong in Gyeongsangnam-do, and to the south is the Gwangyang Bay.

Mountains in the city include Baegunsan (백운산, 1,217m), to the south is Gayasan (가야산, 497m) and Gubonghwasan (구봉화산, 473m). Baegunsan is the second-highest mountain in Jeollanam-do with the exception of Jirisan (지리산, 1,915 m).

The average yearly temperature is 13.7 °C (56.7 °F), the average in January is 0.1 °C (32.2 °F), and the average in July is 27.8 °C (82.0 °F). The average yearly precipitation is 1,296 mm (51.02 in)

As of October 14, 2007 plans are being set up and a referendum is being planned for a merging of the cities of Yeosu, Suncheon and Gwangyang into a new metropolitan city, taking advantage of the Gwangyang Bay Free Economic Zone, Yeosu's Expo 2012 bid and port facilities, Suncheon's educational institutes and Gwangyang's POSCO plant.[1]

Incheon

Incheon (Korean: 인천; Hanja: 仁川; Korean pronunciation: [intɕʰʌn]; formerly romanized as Inchŏn; literally "kind river"), officially the Incheon Metropolitan City (인천광역시), is a city located in northwestern South Korea, bordering Seoul and Gyeonggi to the east. Inhabited since the Neolithic, Incheon was home to just 4,700 people when it became an international port in 1883. Today, about 3 million people live in the city, making it South Korea's third most-populous city after Seoul and Busan. The city's growth has been assured in modern times with the development of its port due to its natural advantages as a coastal city and its proximity to the South Korean capital. It is part of the Seoul Capital Area, along with Seoul itself and Gyeonggi Province, forming the world's fifth largest metropolitan area by population.

Incheon has since led the economic development of Korea by opening its port to the outside world, ushering in the modernization of Korea as a center of industrialization. In 2003, the city was designated as Korea's first free economic zone. Since then, large local companies and global enterprises have increasingly invested in the Incheon Free Economic Zone, including Samsung which chose Songdo International City as its new investment destination for its bio industry.

As an international city, Incheon has held numerous large scale international conferences, such as the Incheon Global Fair & Festival in 2009. The 17th Asian Games Incheon 2014 was also held in Incheon on 19 September 2014. Incheon has established itself as a major transportation hub in northeast Asia with the Incheon International Airport and Incheon Port. The city is also home to the Green Climate Fund, an international organization addressing environmental issues.

Incheon Free Economic Zone

The Incheon Free Economic Zone (IFEZ), located in Incheon, South Korea is a Korean Free Economic Zone that consists of the three regions of Songdo, Cheongna, and the island of Yeongjong and has a total area of 51,739 acres (209.38 km2). The goal of the IFEZ is to transform these three areas into hubs for logistics, international business, leisure, and tourism for the Northeast Asian region. Incheon's Free Economic Zone was officially designated by the Korean government in August 2003. IFEZ is planned to be a self-contained living and business district featuring air and sea transportation, a logistics complex, an international business center, financial services, residences, schools and hospitals, and shopping and entertainment centres.

Kaunas Free Economic Zone

The Kaunas Free Economic Zone (FEZ) or Kaunas FEZ (Lithuanian: Kauno laisvoji ekonominė zona) is a free economic zone near Kaunas, Lithuania. It is a 534 hectare industrial development area which offers favorable and smaller taxes for the investors that invest at least 1 million euros. The investors are mostly foreign companies, as more than 70% of total investments in Kaunas FEZ are foreign direct investments (FDI).The Kaunas Free Economic zone was established on 22 October 1996 in Kaunas district, near the motorways A6 and A1.

Klaipėda Free Economic Zone

Klaipėda Free Economic Zone or Klaipėda FEZ (Lithuanian: Klaipėdos laisvoji ekonominė zona) is the first and most successful free economic zone in the Baltics, as well as the largest tax free zone in Lithuania. It was established in 1996, officially launched in 2002, and is currently managed by the Klaipeda Free Economic Zone Management Company.

Klaipeda FEZ consists of 412ha of land dedicated to manufacturing plants, logistics, and business park development. In 2017, Klaipeda FEZ became the first and only free economic zone to receive the Quick Launch Award from fDi Intelligence. It is also internationally recognized for its specialism within the plastics industry, contribution to the national economy, energy efficiency, as well as the rapid on site expansion experienced by its investors. Klaipeda FEZ is located in Klaipeda (Lithuania), at the heart of Europe, and offers easy access to markets in the EU, Scandinavia, and former CIS countries (Ukraine, Belarus and Russia especially) via an extensive rail, road and sea network. Klaipeda FEZ plays a key role in the regional and national economy, creating value amounting to 2-5% of Lithuania’s annual GDP. It has a strong track record for providing extra care and service to multinational clients such as Yazaki, Indorama Ventures, General Electric Oil&Gas, Albright and others. As of April 2018, Klaipėda FEZ encompassed 29 investors from 16 countries with a total yearly revenue of 1bn Euros, and total exports accounting for 720M Euros. There are more than 100 companies operating within the area of Klaipeda FEZ with more than 5400 employees. 7,3% of Klaipeda's working population work within Klaipeda FEZ.

Korean Free Economic Zone

Korea Free Economic Zones (KFEZ) are designated to strengthen national competition for businesses and promote balanced regional development by improving living conditions and business environments for foreigners in South Korea. Korea's economic zone planning office is in charge of this project. The Korean government provides a variety of tax benefits for foreign firms and foreigners, as well as a simpler regulatory regime, a favorable living environment and swift administrative services. KFEZ endeavors to establish economic and social institutions that lead global trends and provide a variety of incentives.

List of free economic zones

In special economic zones business and trades laws differ from the rest of the country. The term, and a number of other terms, can have different specific meanings in different countries and publications. Often they have relaxed jurisdiction of customs or related national regulations. They can be ports or other large areas or smaller allocated areas.

Terms include free port (porto Franco), free zone (zona franca), bonded area (US: foreign-trade zone), free economic zone, free-trade zone, export processing zone and maquiladora.

Most commonly a free port is a special customs area or small customs territory with generally less strict customs regulations (or no customs duties and/or controls for transshipment). Earlier in history, some free ports like Hong Kong enjoyed political autonomy. Many international airports have free ports, though they tend to be called customs areas, customs zones, or international zones.

Marijampolė Free Economic Zone

Marijampolė Free Economic Zone or Baltic FEZ (Lithuanian: Marijampolės laisvoji ekonominė zona) is a special economic zone located in Marijampolė, Lithuania. It has 77.73 ha area, which was established in 2011 December 23 near European route E67 and Rail Baltica. The zone was established for 49 years, specialize in four industries: Science, Forestry, Metalworking and Food processing, and is oriented to the investors from Scandinavian countries.

Panevėžys Free Economic Zone

Panevėžys free economic zone (FEZ) is a special economic zone located in Panevėžys, Lithuania. It is a 47 hectares industrial area and was established in 2013. Panevėžys FEZ is part of Ogmios group, which is a leading real estate developer in Lithuania. It offers industrial, logistics and other companies fast and flexible set-up process, fully ready infrastructure and 0% tax incentives.

Posco Tower-Songdo

The Posco Tower-Songdo or Northeast Asia Trade Tower (Korean: 포스코타워-송도) is a skyscraper in Songdo International City, the world's most expensive private real estate project in the Incheon Free Economic Zone, South Korea. The 305-metre (1,001 ft) building is currently South Korea's fourth tallest, and has 68 floors. It surpassed the previous record-holder, Samsung Tower Palace 3 – Tower G in Seoul, when it topped-out in 2009. Although finished in 2011, the completion of its interior had been delayed due to financial complications during a recession.The building was intended to be a landmark of the Songdo International Business District which was constructed on unused land along the waterfront near Incheon. It features 19 floors of class A office space, South Korea's tallest observatory on the 65th-floor, a luxury hotel, serviced residences, and retail stores. The column-free floors include an office lobby at ground level with French limestone floors and Vermont slate stone walls.

Suncheon

Suncheon (Korean pronunciation: [sun.tɕʰʌn]) (Suncheon-si) is a city in South Jeolla Province, South Korea. It is a scenic agricultural and industrial city of around 250,000 people near Suncheon Bay. It is located in the southeastern corner of Jeollanam-do, just over an hour south-east of Gwangju. Forty minutes south of Suncheon is the port city of Yeosu, and twenty minutes to the east of Suncheon is Gwangyang.

It is currently experiencing strong development due to being included as part of the Gwangyang Bay Free Economic Zone, one of three newly created Free Economic Zones (FEZs) in South Korea due to open within the next decade. As of October 14, 2007 plans are being set up and a referendum is being planned for a merging of the cities of Yeosu, Suncheon and Gwangyang into a new metropolitan city, taking advantage of the Gwangyang Bay Free Economic Zone, Yeosu's Expo 2012 bid and port facilities, Suncheon's educational institutes and Gwangyang's POSCO plant.

Tangier Exportation Free Zone

Tangier Exportation Free Zone is a free economic zone located south of Tangier, Morocco. The zone has an area of 3.45 km². It is managed by Tangier Free Zone (TFZ).

Tsagaannuur, Bayan-Ölgii

Tsagaannuur (Mongolian: Цагааннуур, white lake) is a sum (district) of Bayan-Ölgii Province in western Mongolia. It is primarily inhabited by ethnic Kazakhs.

The administrative center of the Tsagaannuur sum is the starting point of a road to Russia, which is an important trade connection for the region and the Aimag capital Ölgii.

Yantar, Kaliningrad

The Yantar Special Economic Zone is a Special Economic Zone in Russia, established in 1996 in the Kaliningrad Oblast of the Russian Federation.

"Yantar" means amber in Russian. Amber has been collected along the Baltic coasts of present-day Kaliningrad Oblast since ancient times, and though some sites are still worked today the yield is relatively modest.

Yeongjongdo

Yeongjong Island is an island off the west coast of the city of Incheon, South Korea, which contains Incheon International Airport as well as small villages, farms, and beaches. The previously separate Yongyu, Sammok, and Sinbul Islands have been joined to Yeongjong Island by an area of reclaimed land built for the construction of the airport. The island is an exclave of Incheon Metropolitan City's Jung-gu district, and is accessed via two bridges, Yeongjong Bridge connecting to Seo-gu and Incheon Bridge connecting to Songdo.

In addition to the airport, the island is known for Eulwangni Beach and Wangsan Beach on the west coast, and Yongguksa Temple in the central part. The island also has a ferry terminal on its southwest coast for Muuido Island.

The Incheon Airport Maglev is planned to open the first of three stages which will eventually make a circle around the island. The first stage will stop at Yongyu Station near the ferry terminal.

Šiauliai Free Economic Zone

Šiauliai Free Economic Zone is a special economic zone located in Šiauliai, Lithuania. It has 133 ha area and a 15MW power supply capability. The zone is focused on Engineering industries: metal, plastics, textiles and electronics. The FEZ is close to the airport and major roads. Originally established in 1996, but closed later and re-opened in 2015.

Designations for types of administrative territorial entities

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