Define Export Processing Zone (EPZ) and how it differs from a general SEZ.

Define Export Processing Zone (EPZ) and how it differs from a general SEZ.

• A. An EPZ is a region where all industries are domestically oriented and heavily regulated.
• B. An EPZ focuses on export-oriented manufacturing with streamlined rules; SEZs are broader and may include services and other activities.
• C. EPZs and SEZs are identical in scope.
• D. EPZs are exclusively for agricultural production.

Answer: (B)

Export Processing Zones are areas designed to boost export-oriented production by providing streamlined rules, incentives, and simplified procedures specifically to help manufacturing aimed at international markets. The goal is to make it easier and cheaper to move goods from production to export, often with tax breaks, duty exemptions, and faster approvals.

General SEZs, by contrast, cover a broader set of activities and purposes. They can host manufacturing, services, logistics, and other investment activities, and may serve both export and domestic markets depending on the country and the zone.

So the best description is that an EPZ concentrates on export-focused manufacturing with streamlined regulations, while SEZs are wider in scope and can include services and other activities beyond manufacturing.